Fairness for Workers and Communities

America’s energy transition is well underway, but a transition that is fair for workers and communities isn’t something that will happen organically. Prioritizing and targeting federal resources to workers and communities in places impacted by this shift must be a deliberate choice. A broad range of policy measures and funding are needed to support these workers and communities, a few of which are included in the BIL. In particular, the bill includes a strong focus on environmental remediation and provides some funding for clean energy deployment, manufacturing, and other economic support for communities impacted by energy transition. 

For generations, coal-dependent areas have built their economies around coal, not only for the employment of their citizens, but for the revenue that supports their schools, infrastructure, and small businesses. As demand for coal decreases, these communities face an uncertain future. Because these regions are often geographically isolated and coal facilities are frequently a primary direct and indirect employer of workers across multiple counties, the economic and social infrastructure of a region undergoes lasting changes when facilities close. For every one direct coal job that has been lost, four other jobs have disappeared in these communities, meaning a quarter of a million jobs already have been lost. This leads to devastating impacts on communities, workers, and their families. For example, in Central and Northern Appalachia, poverty levels have either remained stagnant or increased in around 95 counties. While there is no policy “silver bullet” that can fully address this transition, reclamation and reclaimed lands have the potential to be reused as sites that spur new economic opportunities and job creation in these communities, while improving the health and safety of these communities.

The BIL provides significant funding for environmental remediation, including abandoned coal mine (AML) reclamation funding ($11.3 billion), orphaned well cleanup ($4.7 billion), and authorizes a new abandoned hardrock mine cleanup fund. It also reauthorizes the AML fee for abandoned coal mines. The bill includes language that prioritizes hiring dislocated coal workers for AML projects, and encourages the aggregation of contracts to help attract bids from unionized contractors. 

The additional funding in the BIL for Superfund ($3.5 billion) and Brownfield ($1.5 billion) remediation will also have a positive impact on communities as hazardous sites are reclaimed. These contaminated sites, often former chemical plants, power plants, landfills, or manufacturing facilities, pose risks to the environment and human health. Redeveloping and reclaiming these sites can increase local tax revenues and residential property values, all while creating jobs and reducing pollution.  

Reclamation not only remediates the host of environmental and health problems associated with these sites but also frees up that land for new, more sustainable economic development opportunities in industry sectors like agriculture, recreational tourism, manufacturing, and clean energy production. It also creates immediate job opportunities. A recent BlueGreen Alliance analysis found that the BIL’s $21 billion investment in the remediation of Superfund, Brownfield, mine reclamation, and orphaned wells would create more than 150,000 jobs (direct, indirect and induced) over the next 10 years. 

The BIL also reauthorizes and provides funding for the Appalachian Regional Commission (ARC) ($1 billion), a federal-state partnership spanning 13 Appalachian states that invests in infrastructure development, job and entrepreneurship training, economic development planning, business incubation and industry hub strategies, and other services that are critical to revitalize and diversify local and regional economies. Additional funding boosts the ARC’s ability to provide resources to leverage regional partnerships and support efforts, and create and sustain a better economic future for communities in Appalachia. 

Finally, the BIL designates $500 million for clean energy demonstration projects on current or former mine land, including, solar, micro-grids, geothermal, DAC, CCUS, energy storage, and advanced nuclear, as well as $750 million for a grant program for clean technology manufacturing and industrial emissions reduction investment targeted to coal communities. This program focuses on enabling small- and medium-sized manufacturers to build new, or retrofit existing, manufacturing and industrial facilities to produce or recycle advanced energy products in communities where coal mines or coal power plants have closed. This investment will help establish, expand, or retool clean and advanced energy, vehicle, and technology factories in states and regions—like West Virginia, Pennsylvania, and Colorado—that have faced job loss and economic devastation due to plant or mine closures.

Methane and Natural Gas Distribution

America’s natural gas distribution pipeline system is a network of more than one million miles of pipe—pipe underneath our cities and towns that supply energy to homes and businesses. Significant portions of this network were constructed during the 1930’s or earlier, and it’s estimated up to 10% is made of leak-prone materials. 

Methane—the primary component of natural gas—is a greenhouse gas many times more potent than carbon dioxide. Repairing and replacing leak-prone pipelines will reduce emissions and has the potential to create quality, family-sustaining jobs.

The BIL includes $1 billion over five years for a new Natural Gas Distribution Infrastructure Safety and Modernization Grant program at the Pipeline and Hazardous Materials Safety Administration (PHMSA). This funding will support municipality and community-owned utilities as they undertake natural gas distribution pipeline repair, rehabilitation, or replacement projects. Projects awarded grants in this program have to consider the risk profile of the pipeline system, the potential for job creation and economic growth from the project, and the potential of the project to benefit disadvantaged rural and urban communities.