Powering the Future: Montana's Coal Country Faces Transformative Change

Montana's coal country is at a crossroads, as the rise of renewable energy sources poses life-changing questions for communities long dependent on coal production. The Inflation Reduction Act, Bipartisan Infrastructure Law, and related congressional legislation have unleashed a flood of federal funding, creating both opportunities and challenges for the region. This four-part series explores the unprecedented changes unfolding in Montana's coal country, from the reactions of residents to the complex web of incentives, job training, and economic development initiatives aimed at shaping the energy transition.

Navigating the Shifting Sands of Montana's Energy Landscape

The Influx of Federal Funding: Blessing or Burden?

Like a squadron of benevolent B-52s loaded with money, federal opportunities are circling above Montana's coal country looking for places to land. The Inflation Reduction Act, Bipartisan Infrastructure Law, and related congressional legislation have unleashed a torrent of funding, with billions of dollars in tax incentives, loan guarantees, and direct aid to families awaiting takers. However, the sheer scale and complexity of these initiatives have left many residents in southeast Montana feeling bewildered and leery of the process.The EPA's Solar For All program, for instance, plans to spend $44 million in Montana to help tribal and rural communities access rooftop solar panels and lower their electricity bills. This is just a small slice of the $7 billion the EPA has dedicated to supporting low-income and disadvantaged communities. Elsewhere, the Department of Energy's Tribal Energy Loan Guarantee Program has $20 billion on hand to fund solar, wind, and fossil energy projects.The challenge lies in navigating the intricate web of programs and ensuring that the funding is channeled effectively to address the region's unique needs. Residents must grapple with questions of scale, efficiency, and the potential for dueling proposals that could undermine progress.

The Decline of Coal: Facing the Realities of a Changing Energy Landscape

The influx of federal funding comes at a time when Montana's coal mining base around Colstrip is dreading the loss of a fossil-fuel energy industry that has underpinned its way of life for half a century. Nationwide, coal-sourced energy has been on a steady decline, losing half its capacity in the last 15 years as renewable sources have surged.The International Energy Agency's World Energy Outlook 2024 forecasts that United States coal demand will nearly evaporate by 2035. This has had a profound impact on communities like Colstrip, where the mines and generating station once employed around 600 people. The Rosebud mines, which once produced more than 12 million tons of coal per year, now dig just 6 million tons annually.The closure of Colstrip Units 1 and 2 in 2020, two years ahead of schedule, further underscored the industry's decline. The coal that didn't get burned there was loaded onto railroad cars and shipped to Oregon and Washington, each car carrying an average of $14,000 worth of fuel.The ripple effects of this transition have been felt across the region, including the Crow and Northern Cheyenne Indian reservations, which share the Powder River Basin coal deposits. The Absaloka coal mine, located on the Crow Reservation, stopped production last April as its primary customer switched to methane gas.

The Environmental Toll: Addressing the Legacy of Coal

The decline of coal has also brought to the forefront the environmental toll of the industry. The Colstrip power plant's 800-acre coal ash waste ponds have been leaking into the underground water table, contaminating the groundwater with sulfates, boron, selenium, and other heavy metals known to cause health issues.While Colstrip residents don't rely on the contaminated groundwater, the Northern Cheyenne Reservation, which lies just 14 miles from the waste ponds, depends on these underground aquifers for its water supply. The Supreme Court's recent decision to uphold new Biden administration rules requiring tougher pollution standards on coal smokestacks is expected to further accelerate the industry's decline.The environmental concerns, coupled with the economic realities, have hit Montana's coal country hard. Yet, despite the boom-and-bust history of coal jobs, residents atop the Powder River Basin coal deposits are not rushing to embrace the renewable energy future. The reasons for this hesitation are complex, rooted in a mix of uncertainty, political tensions, and the deep-seated cultural ties to the coal industry.

Navigating the Political Landscape: Competing Visions for the Future

The competition for the Indian vote has brought both Democratic incumbent Sen. Jon Tester and Republican challenger Tim Sheehy to the annual Crow Fair gathering near Crow Agency. Tester touted his efforts in negotiating the Inflation Reduction Act and Bipartisan Infrastructure Investment and Jobs Act, which have made significant funding available to the region. Sheehy, on the other hand, drew a rebuke from Crow Tribal Chairman Frank White Clay for his racially insensitive remarks about the Crow Tribe and Indian Country.Despite the political tensions, the Crow Tribe has worked closely with Republican Sen. Steve Daines on a deal to expand accessible coal fields to a mine outside the reservation. Daines' "Crow Revenue Act" would swap the mineral rights to 4,660 acres inside the Crow Reservation owned by the Hope family (who are not tribal members) for 4,530 acres of federal mineral rights near the Signal Peak coal mine.Opponents of the deal have called the arrangement "outrageous," arguing that it would enrich the Hope family at the expense of the United States and the Crow Tribe. The Signal Peak mine has also faced its own challenges, including criminal investigations and legal complaints about its environmental management and worker safety violations.

Charting a Path Forward: Balancing the Past, Present, and Future

As the energy landscape in Montana's coal country continues to evolve, residents and policymakers must navigate a complex web of opportunities and challenges. NorthWestern Energy's proposal to acquire most of Colstrip's generating capacity and keep the plant viable for years has faced opposition, with critics arguing that the utility already has enough new generating resources to replace Colstrip.At the same time, the rise of electricity-hungry data centers has revived some dormant coal plants, complicating the transition away from fossil fuels. The potential for mine reclamation and cleanup work, however, offers a glimmer of hope, as the skills and equipment used to build mines can be repurposed for restoration efforts.The state's Coal Tax Trust Fund, which has nearly $1 billion in the bank, has been a source of funding for infrastructure and public works projects. However, as the coal industry declines, the state must rethink its approach to this resource, shifting from dealing with the impacts of development to investing in the transition and re-investment in a new economic future.The path forward is not a simple one, as the region grapples with the competing demands of the past, present, and future. The influx of federal funding presents both opportunities and challenges, and residents must navigate the complex web of incentives and initiatives to chart a course that balances the needs of their communities, the environment, and the changing energy landscape.