GRAND JUNCTION, Colo. (KKCO) - As the state battles to stay in compliance with federal air quality regulations, Xcel Energy has laid out plans to use less coal and more natural gas to produce electricity.

While some hail the plan as a boost for a suffering natural gas industry, others fear it could bring coal producing towns to a standstill.

The plan was mandated by a new law (House Bill 1365) passed with bi-partisan support earlier this year that aims to reduce emissions and keep additional oversight by the EPA from coming to Colorado.

Before the plan can become reality, though, it must first be approved by the Colorado Public Utilities Commission -- which held a hearing in Grand Junction Monday night to gather input from Western Slope residents.

It was standing room only the in hearing room. It was standing room only in the hallways. And it was standing room only in the overflow room as more than 350 coal workers and supporters packed the Old County Courthouse to send a strong message to state officials.

"We want to be listened to," says Forrest Luke, who works in the coal mining industry. "We've been shut out of the process all the way along."

At the center of the firestorm -- a new plan from Xcel Energy that would convert multiple coal powered plants on the Front Range to natural gas powered plants, and flat out close a coal plant in the Boulder area.

"To do nothing is not an option," says Mark Stutz, spokesperson for Xcel Energy. "We tried to strike a balance of retiring some of our units, retrofitting some of them with new emissions controls so they can continue to use coal, and re-powering some of them with natural gas,"

Luke and most of the people who showed up to the hearing came from northwest Colorado. He fears that the plan could spell disaster for the region, whose economy relies heavily on coal mining.

"I'm concerned that there's going to be a lot of layoffs," says Luke. "There's no infrastructure from the Western Slope to take that natural gas over to those front range power plants. So we're trading good jobs for no jobs."

Concerns that were echoed by many. So many, that the hearing had to be moved outside.

"[The coal industry] is significant," says Moffat County Commissioner Audrey Danner. "Between 700 to 800 jobs each in Routt, Moffat, and Rio Blanco counties. And those are good paying jobs. They make anywhere from 68 to 80 some thousand per job. We would ask that they look at all sides of the issue."

Others feel differently, saying not only will the plan keep the EPA's hands from meddling further in Colorado's energy industry -- it could also mean a boost for the natural gas industry.

"Creating long term demand for our natural gas resources is critical for long term jobs in Western Colorado," says David Ludlam, executive director of the Western Slope Colorado Oil and Gas Association. "That's why we support creating additional marketplaces for our product."

Xcel Energy says despite the conversions and closings, coal will still be used to produce about 70 percent of its electricity. It also points out that if approved, the $1.3 billion plan would take about 12 years to fully implement.

"We believe [the coal industry] will have no difficulty finding future markets for coal," says Stutz. "It's a very attractive generating source because of the low emissions we get from Colorado coal."

The state must submit a finalized plan to the EPA by January 2011. As such the Public Utilities Commission is expected to make a final ruling no later than mid-December.