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SB 25-037

Coal Transition Grants

2025 Regular Session Introduced by Judy Amabile and 43 co-sponsors

Senate Bill 25-037 provides up to $90 million in grants to support communities affected by coal facility closures, ensuring economic transition and diversification.

Governor Signed
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Bill Summary · SB 25-037

Summary of Senate Bill 25-037: Coal Transition Grants

Overview

Senate Bill 25-037, titled "Coal Transition Grants," aims to provide financial assistance to communities affected by the closure of coal facilities. The bill was signed into law by the Governor on June 3, 2025, and is designed to facilitate a just transition for these communities by prioritizing grants and funding for local governments impacted by coal transitions.

Purpose and Intent

The primary intent of SB 25-037 is to support local governments and communities that are economically affected by the closure of coal mines and coal-fired power plants. The bill seeks to ensure that these communities receive the necessary resources to mitigate the socioeconomic impacts of such closures and to foster economic diversification.

Key Provisions

  1. Grant Prioritization: The bill mandates the Just Transition Office within the Department of Labor and Employment (CDLE) to prioritize grants for both tier one and tier two coal transition communities. Tier one communities are those directly impacted by coal closures, while tier two communities are indirectly affected but lack coal infrastructure.

  2. Funding Allocation:

    • Property Tax Compensation: Up to $15 million is allocated to compensate local governments for property tax losses due to coal facility closures.
    • Grants for Public Services: Up to $75 million is designated for grants to local governments for public facilities and services impacted by coal transitions.
    • Remaining Funds: Any leftover funds will be distributed based on community needs, as determined in consultation with local government associations.

  3. Exemption from Investment Restrictions: The bill exempts funds received from payments or settlements related to coal facility closures from state investment restrictions, allowing for more flexible use of these funds.

  4. Reporting Requirements: The Just Transition Office is required to report annually to the General Assembly on the grants awarded, their recipients, and the purposes for which they were granted.

  5. Extended Reporting Deadline: The Colorado Energy Office's deadline for reporting on advanced energy solutions in rural Colorado has been extended to December 19, 2025.

Impact

  • Communities Affected: The bill primarily impacts municipalities and counties that are economically reliant on coal production and energy generation. It aims to provide them with the necessary resources to adapt to the transition away from coal.
  • State Expenditures: The bill is projected to increase state expenditures by approximately $90,000 in FY 2025-26 and about $100,000 in FY 2026-27, funded through the Local Government Severance Tax Fund.
  • Administrative Workload: The Just Transition Office will experience an increase in workload to manage the grant application process and reporting requirements, which can be accommodated within existing appropriations.

Effective Date

The bill took effect 90 days after the adjournment of the General Assembly sine die, following its signing by the Governor.

Conclusion

Senate Bill 25-037 represents a significant legislative effort to support communities transitioning away from coal dependency. By prioritizing grants and providing financial resources, the bill aims to mitigate the economic impacts of coal facility closures and promote sustainable development in affected areas.

Compiled from official sources — confirm details with the bill’s official record.

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