Colorado, United States: State-Level Planning for a Just Transition from Coal

This case study examines Colorado's legislative and strategic efforts to manage the transition away from coal-fired power plants. The state has established a Just Transition Office and Advisory Committee to support workers and communities, while implementing a securitization mechanism to accelerate the closure of uneconomic plants.

• Colorado enacted HB 19-1314 in 2019, which is described as the first legislation of its kind in the United States. This law created a Just Transition Office within the Department of Labor and Employment and a Just Transition Advisory Committee to develop a state-wide plan for workers and communities affected by the decline of the coal industry. Starting in 2025, the Office is expected to provide grants to coal transition communities and support for workers.
• The Just Transition Advisory Committee's August 2020 draft plan includes 11 recommendations. For workers, these include individual transition plans, training and relocation services, and temporary income and benefit assistance. For communities, recommendations focus on diversifying local economies, investing in physical infrastructure, establishing a state-wide investment fund, and reviewing tax and regulatory policies.
• Colorado passed SB-236 in 2019 to enable the securitization of uneconomic coal plants. This mechanism allows utilities to replace remaining coal plant debt with low-interest ratepayer-backed bonds (typically under 3% interest), which can hasten plant retirement. For every $100 million in unrecovered costs securitized for a plant retired 20 years early, ratepayers can save between $35 million and $45 million, some of which is intended for reinvestment in workers and communities.
• The state faces significant implementation challenges, including a lack of identified funding sources, which was worsened by COVID-19 budget cuts that reduced the General Fund by 13% as of mid-2020. Additionally, the Just Transition Office is understaffed, consisting of only one person. The current strategy is also limited in scope, focusing exclusively on coal while ignoring the eventual phase-out of the state's natural gas and petroleum industries.
• Colorado's approach incorporates environmental justice by acknowledging communities disproportionately exposed to pollution and environmental hazards due to proximity to industrial facilities. The Just Transition Advisory Committee established a Subcommittee on Disproportionately Impacted Communities to integrate these considerations into the transition process.

APA

World Resources Institute (2021). Colorado, United States: State-Level Planning for a Just Transition from Coal. https://www.wri.org/snapshots/colorado-united-states-state-level-planning-just-transition-coal

Chicago

World Resources Institute. Colorado, United States: State-Level Planning for a Just Transition from Coal. 2021. https://www.wri.org/snapshots/colorado-united-states-state-level-planning-just-transition-coal.

Wikipedia

{{cite report |author=World Resources Institute |title=Colorado, United States: State-Level Planning for a Just Transition from Coal |date=1 April 2021 |url=https://www.wri.org/snapshots/colorado-united-states-state-level-planning-just-transition-coal |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute2021colorado, author = {{World Resources Institute}}, title = {{Colorado, United States: State-Level Planning for a Just Transition from Coal}}, institution = {World Resources Institute}, year = {2021}, month = apr, url = {https://www.wri.org/snapshots/colorado-united-states-state-level-planning-just-transition-coal}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }