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

Colorado has established a first-of-its-kind legislative framework to manage the transition from a coal-based energy economy, creating a Just Transition Office and Advisory Committee to support workers and rural communities. The state's strategy includes 11 recommendations for worker retraining and community economic diversification, alongside a securitization mechanism (SB-236) to accelerate the closure of uneconomic coal plants. However, the initiative faces significant challenges, including a lack of clear funding, severe understaffing of the Just Transition Office, and a narrow focus that excludes the natural gas and petroleum sectors.

• Colorado enacted HB 19-1314, the first legislation of its kind in the United States, to develop policies supporting workers and communities affected by the loss of coal jobs and those disproportionately impacted by coal pollution. This law established a Just Transition Office within the Department of Labor and Employment and a Just Transition Advisory Committee to create a state-wide plan.
• The Just Transition Advisory Committee's August 2020 draft plan proposes 11 recommendations. For workers, these include individual transition plans, training and relocation services, and temporary income and benefit assistance. For communities, the plan suggests funding for economic diversification, infrastructure investment with local hiring requirements, and the creation of a state-wide investment fund and intermediary to lower risk for investors.
• To accelerate the retirement of uneconomic coal plants, Colorado passed SB-236, which enables securitization. This allows utilities to replace remaining coal plant debt with low-interest ratepayer-backed bonds (typically under 3%), with potential ratepayer savings of $35 million to $45 million for every $100 million securitized for a plant retired 20 years early. A portion of these savings is intended for reinvestment in affected workers and communities.
• The transition strategy faces three primary obstacles: a lack of identified funding sources (exacerbated by COVID-19 budget cuts), critical understaffing—with the Just Transition Office consisting of only one person—and a scope limited to coal that ignores the eventual phase-out of the state's natural gas and petroleum industries.

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} }