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Nearly all coal plant to close by 2030 

 by Allen Best

Big Pivots

A bill proposing to allocate $15 million toward just transition of Colorado’s coal-dependent communities and associated workers has been introduced in the Colorado General Assembly.

This should be understood as just the beginning of what will be needed, as Colorado begins laying down its giant fleet of coal-powered power plants in the next decade, says Dennis Dougherty, executive director of the Colorado AFL-CIO.

Dougherty co-chairs the just transition advisory committee created by legislators in 2019 when they set up the Office of Just Transition. The office is charged with identifying or estimating the timing and location of facility closures and job layoffs in coal-related industries and their impact on affected workers, businesses, and coal transition communities. It is also to help coal-dependent communities such as Craig, Hayden, Pueblo, and Brush create transition plans.

Dennis Dougherty

“This is a good step forward,” Dougherty told Big Pivots. “When we get closer to coal closures, we are going to see a magnitude of 10 to 15 times that amount annually.” He expects about $100 million a year will be needed as the coal plant closures accelerate in around 2025 and 2026.Best of all, he said, would be if the federal government steps up to shoulder most of the financial burden of the transition from coal to other fuel sources, mostly renewables. The stimulus package provides one opportunity.

In Nucla and Naturita, where a coal plant and mine closed in 2019, local leaders hope state aid will allow them to continue efforts to fill the void created by the loss of coal jobs. See story, “No Just Transition yet.”

The bill, HB21-1290, has bi-partisan sponsorship, including Rep. Daneya Esgar, of Pueblo, and Sen. Steve Fenberg, of Boulder the Democratic majority leaders in the two chambers of the Colorado Legislature. Other sponsors are Rep. Perry Will, of New Castle, and Sen. Bob Rankin, of Carbondale. Both are Republicans whose districts include the state’s coal plants and mines in the Yampa River Valley.

Of that proposed allocation, $8 million would go to a fund for assistance in development of rural economic diversification and transition roadmaps as was set forth in the final Just Transition Action Plan issued in December by the state’s embryonic Office of Just Transition.

Dougherty emphasized that the goal will be to assist communities such as Craig in defining their futures, not impose plans from Denver.

“Our top priorities are equipping community leaders with the resources and staff they need to do impactful economic development work,” he wrote in an op-ed with Beth Melton, a Routt County Commissioner, who is co-chair of the advisory committee.

Craig and Moffat County have had active transition planning for several years, although the urgency picked up after Tri-State announced in January 2019 its plans to get out of coal in Colorado by 2030. A transition committee has accelerated its work in the Nucla-Naturita area.

Pueblo recently has begun forming a just transition team, with representation from the city, the county, its two colleges, and the International Brotherhood of Electrical Workers, among others.

Another $7 million of state funds would be earmarked for a coal transition worker assistance program. The money could be used to expand existing apprentice programs, the training capacity of such programs, and the placement of coal transition workers into such programs.

This is from the April 30,2021, issue of Big Pivots, an e-magazine tracking the energy and water transitions in Colorado and beyond. Subscribe at bigpivots.com

The bill further stipulates that the money could be used to provide tuition reimbursement and provide for job search assistance and individualized financial transition. This would include job search assistance but also family assistance.

A maximum of 5% could be used for administrative purposes in the Office of Just Transition, to a maximum of $750,000. In a 2019 law, legislators created the office in 2019 and also an advisory committee with diverse representation.

The proposed law specifies that a “coal-transition worker” can include not just miners but also those working at power plants and in transportation, including railroads. Eligible workers would include those laid off after Jan. 1, 2017.

Colorado had several relatively small coal-plant closures prior to 2017 and one plant, the Cherokee power plant north of downtown Denver, whose fuel was switched from coal to natural gas.

Since then, Tri-State Generation & Transmission’s small coal plant near Nucla, in southwestern Colorado, was closed in September 2019. Xcel plans to close Comanche 1 and 2, its plants near Pueblo, in 2022 and 2025. From 2025 to 2030, coal plants at Craig and Hayden will also be closed. Xcel plans to retain its Pawnee coal-fired power plant at Brush but switch the fuel to natural gas in 2028.

By decade’s end, Colorado could just have one coal-fired power unit remaining, the Comanche 3, which was completed in 2010. But its status is uncertain, as it has been a lemon so far, with many costly repairs paid for by Xcel ratepayers. Minority owners of the plant are Intermountain Rural Electric Association and Holy Cross Energy.

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