Tools to Help Plan For and Fund a Just & Equitable Transition From Fossil Fuel Power Plants and Mining

Happening Now

Coal plants are closing in increasing numbers and earlier than scheduled times. Surprise announcements of plants closing before scheduled retirement are occurring. Although this is great news in terms of reducing greenhouse gas emissions, utilities, regulators, legislators, and communities have often been caught off guard and do not have a plan nor the funds for a Just & Equitable Transition for communities.

As this transformation accelerates and more coal power plants and coal mines close, we need to assure the well-being of affected families and communities.

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Just & Equitable Transition requires that we balance local interests, efficiencies, economics, and people as we pursue strategies to grow and clean our power systems.

How to Secure Transition Funds

Many communities, states, and the federal government are now taking action to plan for and mitigate the impacts this transformation has on communities. A strong lesson from the historical examples of coal transitions is there are difficult processes, and can often leave long-lasting effects on individuals, regions, and communities.

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This site offers general resources on just transition as well as specific examples of testimony and legislation that attempts to ensure that transitions are just and equitable.

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Among the lessons learned from communities already transitioning from coal power plants and/or mines is the importance of early inclusive planning for transition funds such as:

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1) Community revenue replacement

2) Worker redeployment, retraining, and bridge funds

3) Reclamation and remediation

4) Sustainable economic development

5) Siting replacement power in or near affected communities

Case Studies of Just & Equitable Transitions

Examples of Legislation and Testimony Used for a Just & Equitable Transition

State

Legislation

Proceedings & Reports

Arizona

Arizona Corporation Commission Docket No.: E-01345A-16-0036

• Direct testimony of Nicole Horseherder and Michael Eisenfeld

• Surrebuttal testimony of Michael Eisenfeld

• Post Hearing Brief of San Juan Citizens Alliance, T´O Nizhóni Ani, and Diné CARE (“Citizen Groups”)

• Exceptions to Comments on/Responses to Proposed Order/Recommended Order/Recommended Opinion and Order

Other links & articles

• President Nez filing comments to TEP

• Hopi Tribal Chairman: Timothy Nuvangyaoma comments to TEP

• CERE Report

• IEEFA report (March 2020): The Case for Utility Company Reinvestment AZ Coalfield Communities March 2020

• Just Transition Fund - Arizona 

California

• CA SB No. 1090

• CA SB No. 901

• CA AB No. 913

Public Utilities Commission
Order Instituting Rulemaking to Review, Revise, and Consider Alternatives to the Power Charge Indifference Adjustment.

• Evidentiary Hearing

Colorado

• CO S. 1743

• CO AB 1339

• CO HB 19-1314

  • Colorado Just Transition Action Plan

• CO SB 239

Proceeding: 16A-0231E
Proceeding title: Public Service Co of Colorado – Revised Depreciation Rates

• Answer Testimony of Erin Overturf, Western Resource Advocates

• Cross-Answer Testimony of Erin Overturf – WRA

Other links/articles

• Colorado State University’s Center for the New Energy Economy Hosts 3rd Bi-Partisan Clean Energy Legislative Academy

• Boulder JET

• Colorado: Support a Just and Equitable Transition via Securitization

Iowa

Iowa Utilities Board on August 1, 2019, Docket RPU-2019-0001

On Behalf of Environmental Law & Policy Center and Iowa Environmental Council

• Testimony of Uday Varadarajan

Minnesota

PUC Docket No. E015/GR-16-664
In the Matter of the Application of Minnesota Power for Authority to Increase Rates for Electric Utility Service in Minnesota

• Direct Testimony – Uday Varadarajan

• Rebuttal Testimony of Uday Varadarajan

Missouri

• MO SB 968

Montana

• MT HB 0467

Webinar recording/materials from April 15, 2020 presentation

Presented by Patrick Barkey, Ph.D., the presentation explains the economic role of the Colstrip Steam Electric Station and similar power plants in terms of electricity generation and employment.​

• Assessing Early Retirement of Coal Generation

Docket No. D2018.4.24 RE: Colstrip. In the Matter of the Investigation of Federal Tax Reform Impacts on NorthWestern Energy’s Revenue Requirements

• Direct Testimony of F. Diego Rivas (MEIC & NWEC)

New Mexico

New Mexico Energy Transition Act, SB 489

Final Version of the Bill related online content:

• 350.org bill summary

• Gov. Lujan Grisham’s press release on signing the bill

• Noah Long (NRDC) blog

• Western Resource Advocates Blog

• Sen Heinrich op-ed in NM Political Report

NM Senate Committee Substitute for Senate Bill 47

• Discussion Draft

• NM Water & Natural Resources Committee Handouts

​NM Public Regulation Commission
Regulatory Considerations on Debt Securitization Financing

• Cynthia B. Hall, Vice Chair, Commissioner

• WNRC Interim Comm Hearing (Audio)

South Carolina

Public Service Commission DOCKET NOS. 2017-370-E; 2017-305-E; 2017-207-E

• Direct Testimony of Ronald J. Binz

• Direct Testimony of Uday Varadarajan

Utah

• Update #1: Saber Partners’ CEO Joseph S. Fichera to Speak at Society of Utility Regulatory Financial Analyst Conference

• Utah Clean Energy Securitization

• MN HF No. 1842

Maine

• ME HP 924

Maryland

• MD SB 516

West Virginia

• WV HB 4574

• S. 4306

Wyoming

• HB0205

Tribes

• ​Navajo Equitable Economy

• Navajo Generating Station Demolished (vide0)

• Navajo Generation Coal-fired Power Plant Shuts Down Early

• After the Local Coal Mine Shuts Down, These Navajo and Hopi Communities Seek a Just Transition

• Club Partners with Navajo, Hopi on Renewable Energy Plan

• Just Transition Petition Seeks Restitution

• Seeking a Just Transition (2006, California)

• Time for a Just Transition to a better future on the Rez

• With coal dying, Arizona utility offers $169 million deal with Navajo

• APS Commits $127 Million To Navajo Nation, Promises Renewable Energy And Expanded Grid Access

• Racial Equity Impact Assessment

  • Racial Equity Impact Assessment Toolkit​

• Memorandum on Tribal Consultation

Presentations from JET Calls 

Date

Presenter

Presentation

Organization

September 2020

Sam Wolf

How Fossil Fuel REVENUES Can HELP Finance a Just Transition

September 2020

Claire Wang

Policy processes for a just transition from coal: A survey of U.S. state legislation

• Dissertation: Policy processes for a just transition from coal: a survey of U.S. states

Green Finance Center

University of Oxford

January 2020

Sara Chandler

Elemental Excelerator

Momentum Impact Report

October 2020

Albert Lin

Financial Matters Designed For Clean Energy Adoption

Pearl Street Station Finance Lab

 Donna Brutkoski

RAP

Making a Clean Energy Future an Equitable One

November 2020

The City Is in My Hearing Room: Working With Local Government in Utility Commission Proceedings

RAP

July 2020

Nancy Seidman

Resources

Additional JET Info

• Just Transition Fund

  • Just Transition Fund Blueprint​

• National Economic Transition Platform

• The Just Transition Project - Harvard

• Resources from Just-Transition’s site

• Eight Steps for A Just Transition

• Vibrant Communities and Landscapes – A Vision for California in 2050

  • Draft land use proposal for California sponsored by several community agencies and organizations including the Strategic Growth Council

• Carbon Pricing Represents the Best Answer to Our Climate Danger

  • Washington Post Opinion (March 13, 2020)​

• ​Energy Infrastructure: Sources of Inequities and Policy Solutions for Improving Community Health and Wellbeing (Full report)

• Interior Investing Over $260 Million to Help Create Jobs and Revitalize Land in Coal Communities

• A Roadmap to an Equitable Low-Carbon Future: Four Pillars for a Just Transition 

• Making a Clean-Energy Future an Equitable Future (Blog)

• RAP Electricity Regulation in the US: A Guide (Second Edition)

• Opportunity Zones Can Assist Just & Equitable Transitions

• Process for Purpose: Reimagining Regulatory Approaches for Power Sector Transformation

• Energy Communities in Transition

• Just Transition Centre Report Just Transition

• Building Blocks of State Climate Policy

• President Biden Takes Executive Actions to Tackle the Climate Crisis

• 100% Network

  • Comprehensive Building Blocks for a Regenerative & Just 100% Policy report​

• Energy Communities in Transition

• Jobs & Economic Transition

• Workers and Communities in Transition: Report of the Just Transition Listening Project

• The Need for Federal Support to Ensure Just Transitions for Local Energy Economies

• Making a Clean-Energy Future an Equitable Future

• How the Clean Energy Transition Affects Workers and Communities

• What's a 'just transition' and can you switch to green energy without sacking coal workers?

• You Can Make a Difference and Take Transformative Actions

Transformative Finance

• America’s Power Plan

  • ​This resource library highlights different tools to balance stakeholder interests and facilitate the transition away from uneconomic fossil fuel plants. These briefs provide utility stakeholders with more tools to manage financial transition to balance stakeholder interests, and can help states facing new economic realities embrace clean energy.

• Transform Finance

  • A global organization with projects and resources that focus on the intersection of finance and social justice. This link takes you to the various videos, articles and resources on Transformative Finance.

• Using Finance to Make Energy Prosperity Work for Everyone

  • A webinar demonstrating how low-financing can help communities and utilities better transition through the closing of a fossil fuel plant. Presented by Climate Policy Initiative.

• Steel for Fuel – How Utilities Can Replace Fossil Fuel Expenses With Renewables Earning Potential

  • The “steel for fuel” strategy is an increasingly appealing method for hitting the sweet spot on risk, return and scale for utility customers and investors. Article from GreenTech Media – December 2018

• University of Pennsylvania Launches Initiative to Help Finance Climate-Resilient Cities

• Transform Finance

• IEEFA Energy Finance Conference 2020

Finance 101

• Securitization – In general financial terms, it is the process of taking an illiquid asset, or group of assets, and through financial engineering, transforming it (or them) into a security.

  • This article explains how this is used by utilities for its assets, and more recently, how utilities may use this financial tool to retire coal plants sooner. An example from Colorado: How refinancing could help retire Colorado coal plants sooner

• Securitization a Useful Financing Tool for Transition From Coal

• Legal considerations in utility stranded cost securitizations

• Map of States with Some Form of Enabling Legislation for a ROC/RRB Financing 

  • There are 21 states. ROC MAP

• Spot for Clean Energy site

  • The SPOT for Clean Energy map supplies energy mix and energy policies for each state.​

• 23 Financial Terms Everyone Should Know

• 101 Financial Terms Flashcards

JET Examples Around the World

• Kern County, CA

  • ​Towns in Transition: Kern County, CA as a Case Study for Justice Considerations in Decarbonization

• Stockton, CA

  • The Stockton Economic Empowerment Demonstration (SEED) is the country’s first mayor led guaranteed income demonstration. They aim to test a simple yet innovative solution to poverty and inequality.

• West Virginia

  • How The Next Generation Of West Virginians Are Building A Way Out Of The State’s Coal Economy

• Spain​

  • Spain Wants to Phase Out Coal Plants Without Hurting Miners

• Poland

  • Just Transition Fund Pillar 1 of the Just Transition Mechanism 

• Canada

  • Harvey Inlet Wind​

• In Search of Just Transition: Examples From Around the World