Community Impact Funds Could Subsidize a Fossil Fuel Railroad

A proposed fossil fuel railwayin Utah is receiving $28 million toward an environmental impact survey that will help push the project forward, but opponents argue that the grant defies the mission of the agency distributing it.

The Utah Permanent Community Impact Fund, created to "alleviate the boom and bust cycle of energy production" and help communities recover from the effects of oil drilling and mineral extraction, has traditionally granted funds for public infrastructure projects like medical facilities and road improvements. The Center for Biological Diversity and Living Riversare suing to block the grant from contributing to more fossil fuel infrastructure in the state, arguing that using the money to develop the railroad goes against the intended purpose of the fund. Residents concerned about potential erosion, mudslides, and fires caused by construction activities want to see the money used for mitigating measures, and opponents of the railway argue that any short-term benefits to the local economy are outweighed by the risks to local wildlife, habitats, and communities.

The lawsuit, if successful, could set stricter standards for how mitigation funds like the Community Impact Fund distribute grants and prevent revenue meant for community projects from ending up with fossil fuel corporations.