In 2019, the State of Colorado established the first state-level Office of Just Transition (OJT) through House Bill 19-1314 . As required by that legislation, the OJT submitted its final Just Transition Action Plan on December 31, 2020, based largely on the Draft Plan submitted by its Just Transition Advisory Committee (JTAC) in August 2020. (The structure, mandate, and documentation from the consultation process are accessible here; an excellent summary is provided by the State press release here .
The December Just Transition Action Plan offers discussion and strategy recommendations organized in three sections: communities; workers; and financing. The estimated cost is $100 million, and the time frame calls for actual closures to finish in 2030. (Perhaps the leisurely schedule will be reviewed in light of events: the Denver Post reported on January 4 that Xcel- Energy announced it will close its Hayden coal plant significantly earlier than planned – beginning in 2027). The December Action Plan strategies are dominated by concerns for communities, with six detailed strategies outlined. Recognizing that some communities are more dependent on coal than others, and that average wages are also different across communities, the plan designates four communities as priority Tier One communities, and others as Tier Two communities, as defined in an Appendix. The Hayden plant is located in a Tier One community.
Actions for workers’ benefits, environmental justice are deferred
Regarding workers, there are 3 action strategies. The Just Transition Advisory Committee made recommendations to provide displaced workers with temporary benefits related to “wage and health differential” and “wage and health replacement” in the Draft Plan in August, but the final Plan states: “too much uncertainty remains around cost and scalability for us to feel comfortable advancing this recommendation — especially in the midst of the COVID pandemic and resulting economic downturn.” Instead, the Office for Just Transition: “will drive a serious process to gain more certainty about costs, scalability, potential sources of funding, and possible alternatives at the state level. And we will engage a broad range of stakeholders in a dialogue about whether the State should implement such a strategy — and how it might do so.” This includes discussions with coal-related employers regarding their willingness to provide severance and retirement benefits.
This Plan also discusses and ultimately deflects and defers responsibility for the environmental justice concerns expressed in the 2019 enabling legislation , which recognized “a moral commitment” to “the disproportionately impacted communities who have borne the costs of coal power pollution for decades”. This December Plan states: “we agree with the JTAC that these issues are best addressed in that broader context, which is why we are following its suggestion that OJT participate actively in emerging interagency efforts — led largely by the Colorado Department of Public Health and Environment — rather than creating our own independent (and potentially isolated) approach….. OJT will continue to rely on the advice of the Disproportionately Impacted Communities subcommittee of the JTAC, and it will play as active a role as possible in broader interagency efforts. As with our work on behalf of transition communities and workers, this is a long-term challenge to which we make a long-term commitment.”
The final report is summarized in an article in The Colorado Sun , which emphasizes the explicit goal for the Office of Just Transition to “Encourage the federal government to lead with a national strategy for energy transition workers”. This is perhaps thanks to the leadership of Dennis Dougherty, Chair of the Colorado Just Transition Advisory Committee, Executive Director of the Colorado AFL-CIO, and through them, a representative to the National Economic Transition project – a grassroots organization of representatives from U.S. coal communities. That ongoing project released a National Economic Transition Platform in the summer of 2020 .