Moving Beyond Fossil Fuels While Working for a Just Transition
While there’s no denying the overwhelmingly positive impacts of the rapidly accelerating shift towards clean, renewable energy sources here in Colorado and across the globe, the transition raises real fears for many communities whose economies have historically been reliant on the fossil fuel industry. Colorado history is filled with boom and bust cycles, most of which resulted in widening wealth gaps, leaving individuals and communities deeply disenfranchised. The shift to clean energy doesn’t have to be destined to repeat the same mistakes. A just transition - one that provides pathways, protections, and opportunities to the communities most impacted by the loss of fossil fuel industries - is very possible, as long as thoughtful and proactive measures are taken now.
The effects of transitioning away from fossil fuels will be felt widely throughout Colorado and the mountain west. According to the Colorado Department of Labor and Employment’s Office of Just Transition, more than 2,000 people are currently employed in coal industry jobs (that number was significantly higher before the closure of the Nucla Station plant in 2019). With more than half of the state’s remaining coal plants scheduled to close in the next decade, immediate and significant action will be needed to achieve a smooth and equitable transition for employees and the communities they call home.
Nearly all of the conversation happening in Colorado right now around just transition is focused on coal. In fact, the Office of Just Transition (OTJ), born from 2019 legislation in the Colorado General Assembly, is solely targeted at supporting the transition from coal. While certainly an important part of the equation, this singular focus overlooks the fact that, according to a report by the BlueGreen Alliance, 33,000 people in our state are directly employed in the oil and gas sector, and thousands more work in auxiliary industries like steel manufacturing and petroleum refining. Keeping the focus narrowly on coal risks missing the chance to smooth the transition in the areas likely to experience even greater impacts.
Oil and gas workers typically earn well above the state average in wages, meaning job losses in this industry will have outsized economic impacts if proactive measures aren’t taken. In addition, these jobs cover a wide range of the economic spectrum, from executive offices in downtown Denver to natural gas operations in Weld County and beyond. Despite the fact that many think oil and gas production will continue to proliferate forever, that vision doesn’t align with a decarbonized future. Research highlighted in the BlueGreen Alliance report projects 2021 to be mixed for the industry, and major production cuts from leaders such as BP and ConocoPhillips should make it clear that the transition is well underway.
When it comes to best practices of a just transition, there is certainly no one-size fits all approach. What works for a former coal plant worker in rural southwestern Colorado will be different from the needs of an oil and gas employee on the Front Range. Even so, a handful of recent reports provide recommendations for achieving a just transition. Perhaps the most significant in our state is the Colorado Just Transition Action Plan, released in late December 2020 by the Office of Just Transition. The report provides two sets of strategies: the first is focused on supporting coal communities and the second is aimed at protecting the economic security of individual coal workers and their families.
The Just Transition Action plan emphasizes the importance of coordination between state and federal initiatives. This is echoed by the January 2021 report by the BlueGreen Alliance, “The Colorado and New Mexico Oil and Gas Workforce: Economic Contributions and Future Options,” which calls for the enhancement of federal worker protection policies and expansion of federal aid and stimulus packages in conjunction with the development of more targeted and specific state policies. The OTJ will establish State Action Teams to help the most impacted coal communities coordinate federal and state assistance to align with local needs. This model should be expanded for the oil and gas communities that will inevitably need it. Resources exist to support individuals and communities as they shift away from their reliance on the fossil fuel industry, but it will require time, expertise, and persistence to take full advantage of the complicated and numerous aid sources that are available.
Another major pillar of just transition is economic diversification. The Just Transition Action plan provides numerous recommendations in this realm, such as infrastructure improvements, attracting grants and investments, and workforce training programs. Job skills are also a major focus of the recommendations put forth by the BlueGreen Alliance report. Both reports acknowledge that just transition involves more than simply teaching a coal miner to install solar panels. Although opportunity certainly exists in the flourishing renewable energy sector, intentional, thoughtful, and multidimensional approaches will be needed to ensure that all impacted individuals and communities have viable options and are supported along the way.
Finally, we need to think about both short and long-term solutions when it comes to achieving an equitable and just transition away from the fossil fuel economy in Colorado. An October 2020 report by the Western Organization of Resource Councils (WORC) found that up to 70% of the jobs lost from coal mine closures could be replaced with mine cleanup jobs in the critical 2-3 year period following closure. Not only is this type of surface reclamation critical for the health and safety of the surrounding environment and communities, it is a tremendous opportunity to smooth the immediate transition away from coal. Another major piece of the short-term solution is providing financial aid to individuals that have experienced job loss. Longer-term solutions are grounded in education and investment. Workforce retraining is important, but also providing high school and trade school certification courses in renewables and other industries will build community assets over generations. Investments in small businesses, tourism, and infrastructure will help communities to diversify and recoup lost tax revenues.
So who will pay for all of this? There is an ever-growing consensus that producers and utilities are morally obligated to support a just transition. The Just Transition Action Plan makes the case that “Coal workers and communities have not only fueled our economy -- they have fueled the economic success of these companies and, for some, their shareholders.” Unfortunately, utilities have a track record of dodging financial responsibility, and mines often evade funding reclamation projects that could create critical transition jobs for local communities. It’s up to regulatory agencies and active citizens to continue to hold these companies accountable. We’ll also need to dedicate sufficient state and federal funds towards just transition efforts. Finally, the Just Transition Action Plan found there to be “meaningful investor interest in supporting business attraction and expansion to diversify local economies in transition communities” from private investors and nonprofits. Spending on just transition should be seen as an investment in clean energy and a stronger economic future.
From the beginning, energy issues have been inseparable from equity and social justice issues. Whether it's toxic pollution spewing on the doorstep of disenfranchised communities, poor working conditions in mines, or unfair terms for the ratepayer, Colorado and the rest of the nation must do better to put people before profits. We are being presented with a profound opportunity to do just that as we transition from fossil fuels to clean energy. It won’t happen without meaningful dialogue with impacted communities and thoughtful, proactive measures that put equity and environment at the center of the conversation.
For further reading, see:
Scott Franz (KUNC) Life After Coal: Mining Towns In SW Colorado Race To Survive Another Energy Bust
Nick Bowlan, How Coal Country Becomes Solar Country