| Resource Type | Report |
| Author / Source | Sam Mardell, Claire Wang, Jeremy Richardson, Uday Varadarajan (RMI) |
| Publication Date | May 2022 |
| Location | United States |
| Initiative Type | Policy, Program, Partnership |
| Project Complexity | Intermediate |
| Recommended For | Board, Staff, Community Organizations |
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Estimated reading time: 30+ minutes
Why This Matters for Rural Electric Co-ops
The clean energy transition will deliver major climate and economic benefits but can also create significant localized economic disruption in communities dependent on fossil fuel industries. Coal mining employment fell 57% between 2011 and 2020, and over half of U.S. coal generating capacity operating in 2015 is projected to retire by 2035. The communities most at risk are disproportionately rural, where a single plant or mine can supply 44% or more of local property tax revenue.
This report outlines a policy framework for managing economic transition for coal workers and communities through coordinated support programs. For rural electric cooperatives serving coal-dependent regions, these strategies highlight how utilities and policymakers can support economic resilience while transitioning generation resources. Co-ops can use it to anticipate member impacts, inform conversations with G&T partners, and engage local stakeholders before closures occur rather than after.
Key Takeaways
| › | Transition planning must address economic losses faced by fossil fuel workers and communities, including job loss, reduced tax revenue, and cuts to public services. |
| › | A three-part framework includes relief for workers, reclamation of sites, and reinvestment in local economies to support long-term resilience. |
| › | Early planning and stakeholder engagement improves community outcomes. Clean energy jobs often pay less and require different skills, so economic recovery requires more than a one-for-one replacement. |
| › | Federal, state, and local coordination is critical to deliver effective transition support programs. |
Implementation Considerations
- Cost or Funding Requirements: Funding mechanisms may include federal programs, economic development grants, and infrastructure investment. Availability and access vary significantly by region.
- Member Buy-In: Workforce retraining and economic diversification programs are essential for long-term resilience. Communities with deep ties to coal may resist transition planning, so early engagement is key.
Notable Examples
- Centralia Generating Station (Washington State): Advance notice of closure allowed community leaders to secure economic development grants and achieve strong local economic outcomes.
- Moffat County, Colorado: A single coal plant and two mines supplied 44% of county property taxes, illustrating the fiscal cliff co-ops and local governments face when coal closes.
- Tonawanda, New York: Loss of power plant revenue forced closure of four schools and layoff of 140 teachers before the plant fully closed.
View Full Document Requires name and email to access
Estimated reading time: 30+ minutes
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