A report from Resources for the Future highlights that complex federal grant applications are hindering Wyoming coal communities from accessing essential funds for energy transition projects.
Despite productive relationships forming between local stakeholders and federal officials, the report identifies several factors limiting the state’s coal communities from pursuing federal funding to transform their economies.
Wyoming’s coal industry faces a challenging period, with May marking the end of federal leasing for coal mining in the Powder River Basin, impacting tax revenues.
Governor Mark Gordon announced a lawsuit against the Bureau of Land Management, criticizing the federal focus on reducing coal burning without considering economic impacts.
The state’s energy transition is uncertain, and political changes may further complicate federal assistance for energy market transformation.
Ian Hitchcock, a consultant for Novi Strategies and the report’s primary author, noted that Wyoming’s extractive industries, such as coal and gas, provide significant income in a boom-bust cycle, complicating the transition away from fossil fuels.
Hitchcock found that complex federal grant applications are burdensome, especially for small municipalities with limited resources.
The applications tend to favor well-resourced entities, discouraging state officials from seeking federal aid. Governor Gordon, for example, decided against pursuing federal funding to maintain Wyoming’s energy strategy.
Wyoming’s Grant Assistance Program and Energy Matching Funds support local governments in pursuing funding opportunities.
However, federal funds have largely favored coal communities with more significant job losses, often excluding Wyoming despite its coal production scale.
The report suggests streamlining the federal grant application process and considering current coal production to proactively address communities’ needs before economic downturns occur.
Rusty Bell from Gillette College emphasized regional allocation of grants to ensure equitable distribution across coal basins.
Local officials are acknowledging the need for economic energy transformation due to market shifts, a vital step in engaging with federal programs like the Interagency Working Group on Coal and Power Plant Communities.
Through the Bipartisan Infrastructure Law and the Inflation Reduction Act, significant funds are available to assist communities with diminishing fossil fuel economies.
Hitchcock noted potential challenges if federal funding diminishes but highlighted philanthropic organizations could offer alternative support.
Original Story at insideclimatenews.org