December 19, 2019
Starting a Federal Regional Commission or Authority
The federal regional commissions and authorities are seven
Structural Exceptions
congressionally-chartered, federal-state partnerships that
While the prevailing structure is broadly apparent among
were developed to address economic distress in targeted
the federal regional commissions, exceptions and certain
geographic regions. With congressional authorization, new
novelties are also evident. For example, the ARC’s
regional commissions could be created in areas of the
authorizing statute requires state governors to serve as ARC
country not currently serviced. This In Focus addresses past
members and has no allowance for governors to designate a
and anticipated future congressional interest into the issues
representative (although an alternate may be allowed in
and processes involved in starting a federal regional
extenuating circumstances). By contrast, the other active
commission based on existing models.
regional commissions allow for the member state governors
to appoint designated representatives to serve in their stead.
Current Commissions and Authorities
As of December 2019, seven federal regional commissions
As a single-state commission, the Denali Commission
have been authorized by Congress. (Although some are
features several structural exceptions. Alongside the federal
designated as “authorities,” this In Focus will refer to all of
co-chair, the commission is comprised of the state governor
them collectively as “commissions.”) Four are currently
(who is state co-chair) as well as five other members: the
active: the Appalachian Regional Commission (ARC); the
University of Alaska president; the Alaska Municipal
Delta Regional Authority (DRA); the Denali Commission;
League president; the Alaska Federation of Natives
and the Northern Border Regional Commission (NBRC).
president; the Alaska State AFL-CIO president; and the
Three were authorized but are inactive: the Northern Great
Associated General Contractors of Alaska president. The
Plains Regional Authority (NGPRA); the Southeast
Denali Commission’s federal co-chair is appointed by the
Crescent Regional Commission (SCRC); and the Southwest
Secretary of Commerce, while the federal co-chairs of other
Border Regional Commission (SBRC). The active
commissions are appointed by the President and require
commissions engage in economic development activities in
confirmation by the Senate. The Denali Commission’s
their service areas with funding from annual congressional
inclusion of non-gubernatorial membership is also a feature
appropriations.
of the multi-state Northern Great Plains Regional Authority.
Though inactive, the NGPRA consisted of the federal co-
Structural Features
chair, the state governors, as well as a Native American
tribal co-chair. The NGPRA also used a 501(c)(3)
Common Structures
organization as a resource for implementation.
While the authorized federal regional commissions have
individual distinguishing features, they all include a
A new federal regional commission may share the existing
structure broadly modeled after the Appalachian Regional
commissions’ basic structures while including features to
Commission, which was established by Congress in 1965
represent certain regional economic, social, cultural, or
(40 U.S.C. §§14101-14704). The commission structure is
historical characteristics. Such an approach could also be
comprised of a federal co-chair and the state governors of
adapted to programmatic intent; for example, emphases on
member states or their designated representative (of which
certain industries, types of economic development (such as
one serves as state co-chair). The commission is
infrastructure or workforce development), or other policy
supplemented by professional staff to carry out
priorities, like energy transition or conservation.
organizational activities. While largely considered
independent federal agencies, most commission members
Authorization and Establishment
and staff are not federal employees. The main exception is
Process
the federal co-chair, that co-chair’s alternate, and that co-
chair’s direct staff. However, a commission may adopt
Regional Consensus and Demand
certain federal personnel practices. For example, the ARC
While chartered by Congress, federal regional commissions
pegs its salary grades to the Office of Personnel
are rooted in the states and localities they represent. Prior to
Management’s General Schedule, and former federal
their statutory creation, all federal regional commissions
employees may remain in the federal retirement system.
were preceded by state, local, and/or congressional
expressions of support. The ARC, for example, was
A new federal regional commission may use a similar
founded in response to initiatives from Appalachian
structure to the one established for the ARC, which was
regional governors. Those efforts led to presidential and
broadly replicated in the other commissions. However, this
congressional legislation, which resulted in a study
basic structure has been adapted to the circumstances and
commission and the eventual creation of the ARC in 1965.
needs of the region in question.
All of the federal regional commissions were founded after
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Starting a Federal Regional Commission or Authority
long-term consensus-driven efforts in the states and regions
factors. The appointment of a federal co-chair, unless
to demonstrate both need and demand for their creation.
otherwise provided, is essential for a federal regional
commission’s operations. For example, the SCRC has
Legislation and Authorization
consistently received appropriations, but has been unable to
Once the concept for a federal regional commission has
begin its operations because no federal co-chair has been
gained traction regionally, it may then be the subject of
appointed by the president. Alternative provisions could be
congressional hearings or legislation. Such deliberations
enacted to avoid or surmount such an issue, such as
may last for years, as the case for the federal regional
allowing the federal co-chair to be appointed by a cabinet
commission is gradually established and support is
official, based on the model of the Denali Commission, or
cultivated in the relevant committees (e.g., the House
to provide for the commission to be able to convene in the
Transportation and Infrastructure Committee, the Senate
absence of an appointed federal co-chair.
Environment and Public Works Committee, and the
respective appropriations committees).
Scope and Nature of Activities
While appropriations fund the activities for the federal
For example, SCRC legislation was first introduced in
regional commissions, the scope and nature of each
1994, and grassroots initiatives pushed the concept forward
commission’s activities may differ. The Denali
until its 2008 authorization. Similarly, the SBRC’s 2008
Commission, for example, largely focuses on energy
authorization was preceded by a 1999 executive order, and
storage and infrastructure and special infrastructure
subsequent legislation. The NBRC is notable in that it was
protection programs, reflecting the specific needs of its
proposed only about a year before authorization, but it may
service area. The ARC, DRA, and NBRC engage in a
have benefited from being passed with the SBRC and
broader spectrum of economic development activities, but
SCRC. Once a critical mass of support is achieved,
also feature specialized funding priorities. On example is
precedent suggests that the authorizing legislation is likely
the ARC’s POWER Initiative, which seeks to address
to be included within omnibus legislation, such as the
economic dislocation in coal industry-dependent
conventionally quadrennial farm bills—the 2008 farm bill
communities. The ARC, DRA, and NBRC also provide
authorized the NBRC, the SCRC, and the SBRC—or
financial support to networks of local development districts
consolidated appropriations acts.
(LDDs), which are multi-county economic development
organizations that assess projects and advise the
Appropriations and Funding
commissions on local priorities and issues.
Although the founding legislation may authorize
appropriations, actual funding awaits approval as part of an
The scope of a commission’s economic development
appropriations bill. A lack of appropriations may prevent
activities are also determined by their statutorily-delineated
the entity from beginning operations and any planned
service areas. These service areas are the primary
activities. In recent years, new federal regional
beneficiaries of the commissions’ activities, so only
commissions have received appropriations in the low
organizations based in these areas can receive funding (with
millions of dollars. The Northern Border Regional
some minor exceptions). The service areas can only be
Commission, the newest of the four active commissions,
modified or amended through legislation.
was authorized for up to $30 million in annual funding
when it was created in FY2008 (P.L. 110-234), but received
In addition, the four active commissions consider project
appropriations for $1.5 million in FY2010 (P.L. 111-85).
applications based on county-level designations of distress.
That number held steady until FY2014, when it was
The ARC designates counties along five ascending classes
appropriated $5 million, and gradually increased since then
of distress; the NBRC uses three; the DRA designates
to $20 million for FY2019. The Northern Great Plains
counties as either distressed or not; as does the Denali
Regional Authority, which is inactive, received an
Commission. Along with other criteria, distress levels can
appropriation once for $1.5 million in FY2004. As of
influence funding decisions, and—in the case of the ARC
FY2019, the Southern Crescent Regional Commission has
and the NBRC—may also determine grant match levels.
received annual appropriations for $250,000 each year since
FY2008.
Additional Considerations
There is no requirement that a new federal regional
While federal appropriations fund all the activities of the
commission follow previous or existing models. However,
federal regional commissions and authorities, it is
their commonalities provide an institutional blueprint in
customary for the federal government and the member
statute and in practice. At the same time, the differences in
states to share administrative expenses. Of the authorized
commission charters suggest that new commissions could
federal regional commissions, only the Denali Commission
incorporate structural or programmatic innovations to
is entirely funded by the federal government, although the
accomplish particular policy goals. While there are other
State of Alaska does contribute in other ways. For a
options for federal economic development, the federal
proposed commission, the states’ willingness to share
regional commissions represent a relatively flexible model
administrative expenses may evince their financial
that integrates federal, state, and local input in service of
commitment to the endeavor.
regional economic and community development priorities.
Federal Co-Chair Appointment
Michael H. Cecire, Analyst in Intergovernmental Relations
After appropriations have been secured to begin operations,
and Economic Development Policy
the entity’s launch may be stymied by other operational
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Starting a Federal Regional Commission or Authority

IF11396


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https://crsreports.congress.gov | IF11396 · VERSION 1 · NEW

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