Interagency Working Group (IWG) on Coal and Power Plant Communities and Economic Revitalization

Interagency Working Group (IWG) on Coal and Power Plant Communities and Economic Revitalization

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Updated January 17, 2023
Interagency Working Group (IWG) on Coal and Power Plant
Communities and Economic Revitalization
Congress has provided funding for communities to respond
Working Group Activities
to regional economic challenges associated with changes in
The IWG leads workshops, stakeholder engagement, and
energy markets (e.g., power plant closures, declines in coal
capacity-building activities to support state and local
mining and supply chain business activity). The Biden
transition efforts, and carries out resource identification,
Administration established the Interagency Working Group
analysis, and interagency coordination activities. The
(IWG) on Coal and Power Plant Communities and
IWG’s website (energycommunities.gov) features a
Economic Revitalization (hereinafter the IWG) to facilitate
clearinghouse of over 160 federal funding opportunities and
economic revitalization in coal, oil and gas, and power
is searchable by agency, funding type (e.g., grants,
plant communities and to support workers. This In Focus
incentives, loans), applicant type, and activity. Recent
summarizes the IWG’s objectives, structure, activities, and
webinars have focused on accessing federal funds or
coal community designations, as well as its role in
explaining aspects of new federal legislation that may be
connecting communities to economic transition assistance.
relevant to energy communities. IWG workshops have also
focused on supporting local stakeholders and state-specific
Working Group Mission and Objectives
planning and implementation efforts. For example, in
In January 2021, President Biden issued Executive Order
August 2022, the IWG created a Rapid Response Team
(E.O.) 14008 (“Tackling the Climate Crisis at Home and
(RRT) in the Four Corners region (Arizona, Colorado, New
Abroad”), establishing the IWG. The IWG’s primary
Mexico, and Utah) to connect local stakeholders with
mission is to coordinate the identification of economic
federal resources and agency representatives. After
revitalization resources for coal, oil and gas, and power
facilitating a workshop on economic revitalization
plant communities; develop implementation strategies for
pathways with stakeholders in September 2022, the IWG
economic and social recovery; assess opportunities to
created another RRT in the Illinois Basin region.
support coal and power plant workers; and submit reports
on revitalization efforts.
In April 2021, the IWG published Initial Report to the
President on Empowering Workers Through Revitalizing
Structure, Agency Participants, and
Energy Communities, which identified next steps and
Funding
priorities for economic transition and revitalization. The
The IWG co-chairs are the National Climate Advisor, the
report described the social, economic, and fiscal conditions
Assistant to the President for Economic Policy, and the
in communities experiencing the effects of changing energy
Senior Advisor for Clean Energy Innovation and
markets. For instance, one of several issues faced by certain
Implementation (see E.O. 14008, and E.O. 14082, which
coal and other energy communities is the loss of tax
added a third co-chair). The Department of Energy (DOE)
revenue, which translates to fewer resources for local
provides the administrative home for the working group,
services. The report also offered ways that existing agency
which is led by a DOE-appointed executive director who
authorities may be used to support economic transition
coordinates the interagency activities. Additional working
efforts, established goals to guide the IWG’s work plan, and
group members include the Secretaries of the Departments
summarized key insights gathered from stakeholder
of the Treasury; Interior; Agriculture; Commerce; Labor;
engagement with impacted communities.
Health and Human Services; Transportation; Energy; and
Education; and the Administrator of the Environmental
Priority and “Fenceline” Energy
Protection Agency; the Director of the Office of
Communities
Management and Budget; the Assistant to the President for
The IWG’s April 2021 report included results of a job
Domestic Policy and the Director of the Domestic Policy
density analysis using 2019 Bureau of Labor Statistics
Council; and the Federal Co-Chair of the Appalachian
(BLS) data, which identified the location of 75 metropolitan
Regional Commission (ARC). The Council on
and nonmetropolitan areas with a high number of fossil
Environmental Quality also participates in the IWG. IWG
energy activities and jobs as well as the designation of 25
members lead or participate in workshops, outreach events,
locations that the IWG considered priority communities
and the group’s subcommittees, which focus on policy,
(see Figure 1). The priority communities are primarily BLS
integration, engagement, and investments.
areas impacted by concentrated, direct coal-related job
losses from mine and power plant closures in recent years.
In the explanatory statement accompanying the
The list of priority communities includes mostly rural,
Consolidated Appropriations Act, 2023 (P.L. 117-328),
nonmetropolitan areas; eight are in the Appalachian region
Congress provided $3 million to support IWG activities
and seven are in the U.S. Mountain West region (e.g.,
(see Congressional Record, December 20, 2022, p. S8356).
Wyoming, Colorado). According to the IWG, the priority
communities were presumed to be in need of the most
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Interagency Working Group (IWG) on Coal and Power Plant Communities and Economic Revitalization
immediate transition assistance due to their vulnerability to
express congressional priorities and direction and create
“additional near-term coal mine and power plant closures.”
stability (or inflexibility) across administrations. One
The report further noted that “fenceline” communities are
consideration may be the IWG’s ongoing roles in
communities situated near energy or industrial facilities.
connecting state and local stakeholders with federal
Fenceline communities are also affected by the decline in
resources and coordinating interagency efforts to address
businesses associated with logistics, services, and energy
challenges shared across regions. Congress may also
supply chains, and by the environmental and health impacts
consider additional options, such as federal roles related to
connected to these sites.
planning and technical assistance, project development,
and/or other federal activities in support of regional
Considerations
economic development and revitalization. For instance, the
In considering possible appropriations and related
FY2023 DOE budget justification proposed that the IWG
authorization or program direction, Congress may find
may “proactively promote investments in communities”
useful the findings of the working group’s reports,
that are likely to be impacted by closures in the near-term.
engagement activities, and the particular challenges and
Additionally, energy tax credits established and amended
opportunities faced by the communities identified by the
by the Inflation Reduction Act (P.L. 117-169) provide extra
IWG analysis. Should Congress consider making explicit
financial incentives for investment in communities with
appropriations for the objectives of the IWG, it may
relatively high levels of fossil fuel-related employment
consider specifying amounts of annual agency
(among other communities). Congress could evaluate
appropriations or directing agencies to support the IWG
whether or to what extent those incentives align with IWG
through their existing resources. Another option could be
recommendations.
codifying the group and/or its activities. Codification could
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 nonmetropolitan 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.

Julie M. Lawhorn, Analyst in Economic Development
Policy
IF12238

https://crsreports.congress.gov

Interagency Working Group (IWG) on Coal and Power Plant Communities and Economic Revitalization

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https://crsreports.congress.gov | IF12238 · VERSION 3 · UPDATED