Unlike most countries and state governments, the U.S. has not created a natural resources trust which could help meet volatility and spending challenges facing local and county governments.
The new Administration’s plans to remove coal regulations should not dampen efforts to shift coal transition planning West to assist displaced workers and diversify coal-dependent communities.
Explore the Socioeconomic Context of the Federal Coal Leasing Program
County governments are compensated for the tax-exempt status of federal public lands within their boundaries. These payments often constitute a significant portion of county and school budgets, particularly in rural counties with extensive public land ownership.
This blog draws on federal data and research to describe more about the local economies of the communities dependent on federal coal.
Lower overall coal generating capacity—the outcome of coal fired power plant retirements and a demand for coal that rises and falls depending on natural gas prices—will create new volatility for coal jobs and for counties, schools, and states that depend on tax revenues from coal.
How national wildlife refuge payments–especially important to rural counties–could be reformed and funded.
How county governments can benefit from reforming wildlife refuge payments.
While Montana is likely to experience relatively small impacts, coal-dependent communities in Eastern Montana are likely to feel the acute effects of job losses and declining tax revenue in the coming decades.
Analysis shows that proposed federal royalty reforms will increase the cost of delivering natural gas to domestic power plants by a greater amount than coal.
The proposed federal coal royalty reform rule could have substantial revenue benefits for federal and state governments, limited impact on coal production or prices on federal lands, and increased transparency.
Reform ideas for future county payments from Headwaters Economics as well analysis of proposals made in the House, Senate, and by the President.
The Office of Natural Resources Revenue recently proposed a new rule that would change the way federal coal is valued for royalty purposes. Will it hurt the industry? Yes and No.
This report includes seven major energy-producing states and a new interactive adds four more (AR, LA, and PA). The study and interactive compare how local governments receive production tax revenue from unconventional oil and natural gas.
This report reviews problems with the current federal royalty system, estimates current effective royalty rates, and offers several reform options.
Compared to other nations and even U.S. states, the federal government is a conspicuous laggard in creating a natural resources trust which would allow for stable, permanent, and ever rising payments to states and local governments without risks to taxpayers.
Lower oil prices could be great for the economy, but for the communities dependent on drilling, the price drop may prove challenging for several reasons.
This report compares how North Dakota provides local governments with production tax revenue from unconventional oil extraction compared to other major energy-producing states.
This report compares how Wyoming provides local governments with production tax revenue from unconventional fossil fuel extraction compared to other major energy-producing states.
This report compares how New Mexico provides local governments with production tax revenue from unconventional fossil fuel extraction compared to other major energy-producing states.