A Proposal for a “Marshall Plan” to Ease Energy Transition for Coal-Dependent Communities | Article

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Credit: Tom Sandner

Since the Great Recession of 2007-2009 and throughout the past decade, the U.S. coal industry has been in a state of decline. The shift away from coal toward natural gas and renewable energy, plus considerable investments in energy efficiency that have kept energy demand relative level, have resulted in coal sector job losses. This trend has been accelerated recently by the COVID-19 pandemic. For communities with economies that have historically centered around coal extraction, the decline of the industry means the loss of jobs for a large portion of community members, the loss of tax revenue for local governments, and the lingering environmental hazards of abandoned mine lands.

Increasingly, advocates and policymakers are taking notice and prioritizing plans to support these communities during a difficult time. On July 23, 2020, Senator Tammy Duckworth (D-Ill.) introduced the Marshall Plan for Coal Country Act (S.4306) to address the needs of coal communities as the nation transitions to a cleaner energy system. “We can’t afford to leave [coal workers] behind, which is why I’m introducing legislation to invest in their health and economic security while restoring and securing the future of their communities,” Duckworth said in a press release.

Sen. Duckworth’s plan is inspired by the original Marshall Plan, a program to rebuild Western Europe in the wake of World War II that brought investment into the region and helped lead to a resurgence in industrialization. Updated to meet the present challenges facing coal communities, this bill would, among other initiatives, expand Medicare coverage to coal industry workers that who have lost their jobs, fund tuition and fees for coal workers and their families to pursue higher education, increase investments in abandoned mine land reclamation, place federal grant coordinators in coal communities to help them obtain federal assistance, and promote renewable energy development in affected areas to help create new opportunities.

The bill does not yet have any cosponsors, but it overlaps with many of the policies included in the House Select Committee for the Climate Crisis’s majority staff report. It is also one of several pieces of legislation aimed at supporting coal-dependent communities that have been introduced in the 116th Congress. Representative Raul Grijalva (D-Ariz.) introduced the American Public Lands and Waters Climate Solution Act of 2019 (H.R.5435) and the Environmental Justice for All Act (H.R.5986), both of which would establish a Federal Energy Transition Economic Development Assistance Fund to invest in coal-dependent communities. The Revitalizing the Economy of Coal Communities by Leveraging Local Activities and Investing More (RECLAIM) Act (H.R.2156), introduced by Representative Matt Cartwright (D-Pa.) and included in the Moving Forward Act (H.R.2) passed by the House, would accelerate the disbursement of the Abandoned Mine Reclamation Fund to economically distressed communities.

The Marshall Plan for Coal Country Act also fits within a larger discussion of the workforce in a decarbonized society, which was the subject of a panel in EESI’s 2020 Congressional Renewable Energy and Energy Efficiency EXPO. These issues will also be covered during EESI's upcoming Workforce Wednesdays series in September (check our website next week for more information). Transitioning to different forms of energy will require a workforce equipped to fill new jobs, and workers displaced from the fossil fuel industry may be able to fill some positions if training is available.

Calls for policies to support coal regions are in response to the hardships brought onto these communities by the energy transition. For many towns in historic coal-producing states, such as Wyoming and West Virginia, the decline in the coal industry has resulted in the loss of the driving force behind their local economies. Mining operations support more than the direct jobs of coal miners; they also provide tax revenue for local governments, indirectly create jobs in supporting industries such as restaurants, and provide healthcare for coal industry workers and their families. For communities dependent on a single industry, the loss of that industry can jeopardize the stability of the entire economy.

Author: Abby Neal