A construction worker saws through plywood as excavators dig through the dirt as the foundation of the new TransAlta Commons at Centralia College is built on Friday morning.
The investment is just one example of how TransAlta has given back to the community. Lori Schmitt, corporate secretary of the company, said approximately $10 million has been donated to projects within the area by the corporation since 2006.
TransAlta is also a large contributor to the United Way of Lewis County, providing a major portion of their entire campaign, Campbell said, donating about $200,000 a year.
To fill a void as TransAlta’s economic footprint shrinks during its transition away from coal, the corporation announced Thursday morning it would spend $55 million in community investments.
That money will be allocated in amounts of approximately $4.6 million annually and will be split by three boards: the Weatherization Board, the Economic and Community Development Board and the Energy Technology board.
The investments will be used to help support energy efficiency, economic and community development, and education and retraining initiatives in the state as part of the TransAlta Energy Transition Bill, passed in 2011.
The agreement between the Canada-based company, state agencies and lawmakers called for the north Centralia’s two coal-fired units to be powered down in 2020 and 2025. It also included a provision that the company would invest $55 million into the community to help ease its departure, as long as certain conditions were met.
One provision was that the company be able to secure 500 megawatts.
Currently, the long-term contract with Puget Sound Energy, which is up to 380 megawatts, is key to Centralia operations.
Still, the condition wasn’t met.
Even so, the company decided to invest the money anyway.
“We feel it’s very important that we take care of the employees, and the community…,” said Bob Nelson, president of the company’s U.S. entities and director of Centralia operations. “That’s why we decided to release the funds now even though we are not going to get the 500 megawatts.”
The company was not obligated to spend those funds, but Nelson said that although it would have saved them $55 million in the long run, the company decided it is more important to reinvest the funds in order to help its employees and the community where it has at times thrived.
The committees made up of community members and TransAlta employees will make decisions at the committee level on how the money will be spent. The boards will be able to start flowing dollars into projects starting Dec. 31. Annual payments have been made for the past three years with the last payment due Dec. 31, 2023.
The Weatherization Committee will receive $833,333 annually, the Economic and Community Development Committee will get $1,666,667 and the energy technology board will receive $2,083,000, according to a Memorandum of Agreement.
Bob Guenther, chair of the Energy Technology Board, said the funds put forth by TransAlta are key to the community and the company.
For his board, that could mean investing in new technologies that would potentially harness the skills and knowledge of the existing and former workforce at TransAlta.
The committee will look to use the money in a way that would benefit not only Lewis County, but the state and the region at large, Guenther said.
Money funneled into the Economic and Community Development Board, chaired, by Alicia Bull, will fund education, retraining and economic development targeting the needs of the workers displaced from the Centralia facility.
“It will help directly with employees getting retrained, and bring new jobs to the area,” Richard DeBolt, director of external relations of TransAlta, said. “It also will help us transition. It’s very similar with what we’ve done with the mine.”
The Centralia Coal Mine closed in 2005, leaving hundreds of workers unemployed and leaving behind a gap in tax collections that has grown exponentially since.
It’s an issue that has affected the economy, and in turn job prospects.
Bull, said there will be a huge responsibility to fill a gap that will occur when TransAlta potentially transitions to smaller operations or converts to another fuel source, such as natural gas.
“What we are looking for is a long-term economic opportunity and community partnerships,” she said, calling the funds a “community changer.”
“… We’re really dedicated to being able to bring something else into the area to thrust forward with positive economic growth.”
The Weatherization Board, chaired by Debbie Campbell, will fund energy efficiency and weatherization for residents, employees, business, nonprofits and local governments within Lewis County and South Thurston County.
Campbell said identifying the needs of the community will be key, and that the up to $1 million allocated would make a big difference.
Her board has already interviewed some organizations that center around conserving energy. They’ll focus on projects with the potential for large amounts of savings rather than addressing residential needs.
As for the Energy Technology Board, Guenther said the board wants to focus on innovative technology that would produce power at a reasonable rate. Whatever path they decide to take, he said it will have to be a proven product before funds are allocated in any direction.
Projects will have the potential to create environmental benefits to the state of Washington.
The investment is just one example of how TransAlta has given back to the community. Lori Schmitt, corporate secretary of the company, said approximately $10 million has been donated to projects within the area by the corporation since 2006.
TransAlta is also a large contributor to the United Way of Lewis County, providing a major portion of their entire campaign, Campbell said, donating about $200,000 a year.
