The most effective fiscal policies for communities facing transition away from coal dependency are those that build wealth over time and strengthen community capacity.
Rural and isolated communities face wrenching economic and demographic transitions. A solution to uncertainty is to focus on resilience.
New fiscal and policy assessments help local leaders understand their exposure to declining revenue and policy barriers during a coal transition.
A recent review published in the Resources Policy journal with researchers at Montana State University shows that coal communities lack strong transition plans and largely are unprepared for coming changes.
Coal fiscal policies vary widely across the West in terms of how revenue is generated, set aside in permanent savings, or spent by state and local governments.
A guide to planning for the long-term social, economic and environmental well-being of the community of Colstrip, Montana.
This post compares economic and demographic characteristics of communities where coal-fired power plants have recently retired or are scheduled to retire.
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
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.
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.
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.