link to page 2 
October 24, 2022
Interagency Working Group (IWG) on Coal and Power Plant
Communities and Economic Revitalization
Congress has provided funding for communities to respond
recommend that DOE “may support these activities, similar
to regional economic challenges associated with changes in
to prior years, through funds provided within the
energy markets (e.g., power plant closures, declines in coal
recommendation” (see H.Rept. 117-394).
mining and supply chain business activity). The Biden
Administration established the Interagency Working Group
Working Group Activities
(IWG) on Coal and Power Plant Communities and
The IWG leads workshops, stakeholder engagement, and
Economic Revitalization (hereinafter the IWG) to facilitate
capacity-building activities to support state and local
economic revitalization in coal, oil and gas, and power
transition efforts, and carries out resource identification,
plant communities and to support workers. This In Focus
analysis, and interagency coordination activities. The
summarizes the IWG’s objectives, structure, activities, and
IWG’s website (http://energycommunities.gov) features a
coal community designations, as well as its role in
clearinghouse of over 160 federal funding opportunities and
connecting communities to economic transition assistance.
is searchable by agency, funding type (e.g., grants,
incentives, loans), applicant type, and activity. Recent
Working Group Mission and Objectives
webinars have focused on accessing federal funds or
In January 2021, President Biden issued Executive Order
explaining aspects of new federal legislation that may be
(E.O.) 14008 (“Tackling the Climate Crisis at Home and
relevant to energy communities. IWG workshops have also
Abroad”), establishing the IWG. The IWG’s primary
focused on supporting local stakeholders and state-specific
mission is to coordinate the identification of economic
planning and implementation efforts. For example, in
revitalization resources for coal, oil and gas, and power
August 2022, the IWG created a Rapid Response Team
plant communities; develop implementation strategies for
(RRT) in the Four Corners region (Arizona, Colorado, New
economic and social recovery; assess opportunities to
Mexico, and Utah) to connect local stakeholders with
support coal and power plant workers; and submit reports
federal resources and agency representatives. After
on revitalization efforts.
facilitating a workshop on economic revitalization
pathways with stakeholders in September 2022, the IWG
Structure, Agency Participants, and
created another RRT in the Illinois Basin region.
Funding
The IWG co-chairs are the National Climate Advisor, the
In April 2021, the IWG published Initial Report to the
Assistant to the President for Economic Policy, and the
President on Empowering Workers Through Revitalizing
Senior Advisor for Clean Energy Innovation and
Energy Communities, which identified next steps and
Implementation (see E.O. 14008, and E.O. 14082, which
priorities for economic transition and revitalization. The
added a third co-chair). The Department of Energy (DOE)
report described the social, economic, and fiscal conditions
provides the administrative home for the working group,
in communities experiencing the effects of changing energy
which is led by a DOE-appointed executive director who
markets. For instance, one of several issues faced by certain
coordinates the interagency activities. Additional working
coal and other energy communities is the loss of tax
group members include the Secretaries of the Departments
revenue, which translates to fewer resources for local
of the Treasury; Interior; Agriculture; Commerce; Labor;
services. The report also offered ways that existing agency
Health and Human Services; Transportation; Energy; and
authorities may be used to support economic transition
Education; and the Administrator of the Environmental
efforts, established goals to guide the IWG’s work plan, and
Protection Agency; the Director of the Office of
summarized key insights gathered from stakeholder
Management and Budget; the Assistant to the President for
engagement with impacted communities.
Domestic Policy and the Director of the Domestic Policy
Council; and the Federal Co-Chair of the Appalachian
Priority and “Fenceline” Energy
Regional Commission (ARC). The Council on
Communities
Environmental Quality also participates in the IWG. IWG
The IWG’s April 2021 report included results of a job
members lead or participate in workshops, outreach events,
density analysis using 2019 Bureau of Labor Statistics
and the group’s subcommittees, which focus on policy,
(BLS) data, which identified the location of 75 metropolitan
integration, engagement, and investments.
and nonmetropolitan areas with a high number of fossil
energy activities and jobs as well as the designation of 25
The IWG currently operates without explicit appropriations.
locations that the IWG considered priority communities
The DOE’s FY2023 budget justification included a request
(see Figure 1). The priority communities are primarily BLS
for $3 million to support IWG activities. The House
areas impacted by concentrated, direct coal-related job
Appropriations Committee did not recommend specific
losses from mine and power plant closures in recent years.
funding levels for the IWG in its FY2023 bill, but did
The list of priority communities includes mostly rural, non-
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Interagency Working Group (IWG) on Coal and Power Plant Communities and Economic Revitalization
metropolitan areas; eight are in the Appalachian region and
through their existing resources. Another option could be
seven are in the U.S. Mountain West region (e.g.,
codifying the group and/or its activities. Codification could
Wyoming, Colorado). According to the IWG, the priority
express congressional priorities and direction and create
communities were presumed to be in need of the most
stability (or inflexibility) across administrations. One
immediate transition assistance due to their vulnerability to
consideration may be the IWG’s ongoing roles in
“additional near-term coal mine and power plant closures.”
connecting state and local stakeholders with federal
The report further noted that “fenceline” communities are
resources and coordinating interagency efforts to address
communities situated near energy or industrial facilities.
challenges shared across regions. Congress may also
Fenceline communities are also affected by the decline in
consider additional options, such as federal roles related to
businesses associated with logistics, services, and energy
planning and technical assistance, project development,
supply chains, and by the environmental and health impacts
and/or other federal activities in support of regional
connected to these sites.
economic development and revitalization. For instance, the
FY2023 DOE budget justification proposed that the IWG
Considerations
may “proactively promote investments in communities”
In considering possible appropriations and related
that are likely to be impacted by closures in the near-term.
authorization or program direction, Congress may find
Additionally, energy tax credits established and amended
useful the findings of the working group’s reports,
by the Inflation Reduction Act (P.L. 117-169) provide extra
engagement activities, and the particular challenges and
financial incentives for investment in communities with
opportunities faced by the communities identified by the
relatively high levels of fossil fuel-related employment
IWG analysis. Should Congress consider making explicit
(among other communities). Congress could evaluate
appropriations for the objectives of the IWG, it may
whether or to what extent those incentives align with IWG
consider specifying amounts of annual agency
recommendations.
appropriations or directing agencies to support the IWG
Figure 1. IWG-Identified 25 Priority Communities for Coal-Related Employees
Source: Map created by CRS using data provided by the IWG and listed in IWG, Initial Report to the President on Empowering Workers Through
Revitalizing Energy Communities, Appendix B (Counties within Priority Communities). Figure created by Cassandra Higgins, GIS Analyst, and
Brion Long, Visual Information Specialist.
Notes: The IWG identified the 25 Priority Communities based on the “number of direct coal-related jobs as a percentage of the total number
of jobs in each area.” According to the IWG, the Western Pennsylvania non-metropolitan area (*) was added for geographic diversity, and the
“shading highlights BLS metro and non-metro areas that are communities vulnerable to impacts from coal-specific job losses.” There may be
minor mapping discrepancies between the CRS map and the areas shown in Figure 2 of the IWG report. Contact the author for more
information. Figure 2 of the IWG report includes the location of the top 1-25 and 26-70 metropolitan and nonmetropolitan areas with a high
number of coal-related employees. The CRS map (above) shows the top 1-25 communities identified by the IWG. The IWG report also
included a map that identified the location of the top 75 metropolitan and nonmetropolitan areas with a high number of fossil energy activities
and jobs; see IWG, Figure 1.
IF12238
Julie M. Lawhorn, Analyst in Economic Development
Policy
https://crsreports.congress.gov
Interagency Working Group (IWG) on Coal and Power Plant Communities and Economic Revitalization
Disclaimer
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https://crsreports.congress.gov | IF12238 · VERSION 1 · NEW