The Economic Development Administration’s Assistance to Coal and Nuclear Closure Communities Initiatives for Economic Transitions

INSIGHTi

The Economic Development Administration’s
Assistance to Coal and Nuclear Closure
Communities Initiatives for Economic
Transitions
April 5, 2021
The Department of Commerce’s Economic Development Administration (EDA) supports state and local
planning and economic development projects, among other activities. In response to the decline of coal
industry activity and the closure of nuclear plants, Congress has approved additional funding for EDA
grant programs that support economic transition strategies and help affected communities build economic
development capacity. This Insight considers the role, criteria, and funding history of two EDA initiatives
designed to facilitate economic transitions—the Assistance to Coal Communities (ACC) and the
Assistance to Nuclear Closure Communities (NCC) initiatives.
Economic Adjustment Assistance for Coal and Nuclear
Closure Communities
EDA administers the ACC and NCC funding primarily through its Economic Adjustment Assistance
(EAA) program (42 U.S.C. §3149).
The ACC initiative provides flexible funding for projects that support economic diversification, job
creation, capital investment, workforce development, and re-employment opportunities for coal-impacted
communities. Similarly, NCC funding is designed to address job losses and the decline in local revenues
associated with nuclear plant closures.
Legislative Origins
In FY2014, Congress encouraged EDA to assist communities impacted by the “economic dislocation in
the coal and timber industries” (see explanatory statement, P.L. 113-76). In FY2015 and FY2016,
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Congress directed EDA to allocate funding to “Assistance to Coal Communities.” During these years, the
ACC initiative was administered as a component of the multi-agency POWER Initiative—a coordinated
federal effort to assist coal-impacted communities.
In FY2015, a Senate appropriations report noted the negative, regional economic impact of nuclear plant
closures and encouraged EDA to “identify and develop best practices” to assist affected communities
(S.Rept. 113-181). Then, in FY2020, Congress directed EDA to allocate inaugural funding to the NCC
initiative (see explanatory statement, P.L. 116-93).
ACC and NCC Criteria
EDA currently administers the ACC and NCC initiatives through the EAA program as competitive grants.
According to grant funding procedures, projects must align with the regional comprehensive economic
development strategy or equivalent strategy.
The ACC initiative targets communities and regions that have been negatively impacted by changes in the
coal economy. Applicants are generally eligible for ACC funding if the primary coal economy contraction
“event” (e.g., coal mine or plant closure, closure of coal economy supply chain businesses) occurred
within the previous 1 to 15 years. According to the EDA’s grant funding procedures, “coal economy”
refers to coal mining, coal-fired power plants, along with related transportation, logistics, and supply
chain manufacturing.
Comparably, the NCC initiative targets areas that have been impacted or will be impacted by nuclear
power plant closure. According to the EDA, NCC projects should demonstrate the manner and extent of
an impact from nuclear plant closure, and notes that the proximity to a nuclear plant closure by itself is
“insufficient to demonstrate eligibility.”
Funding History
Table 1 shows annual appropriations for the EAA from FY2015 to FY2021. The table also provides the
amounts Congress has directed EDA to allocate to the ACC initiative for the same period, and for the
NCC initiative since FY2020.
Table 1. EAA, ACC, and NCC Annual Appropriations, FY2015 - FY2021
Dollars in Millions
Fiscal Year
EAA
ACC
NCC
2015
$35
$10*
—
2016
$35
$15*
—
2017
$35
$30
—
2018
$37
$30
—
2019
$37
$30
—
2020
$37
$30
$15
2021
$37.5
$33.5
$16.5
Sources: Data compiled by CRS from explanatory statements accompanying P.L. 113-235,
P.L. 114-113, P.L. 115-31, P.L. 115-141, P.L. 116-6, P.L. 116-93, and P.L. 116-260.
Notes: Amounts do not include supplemental appropriations. In FY2015 and FY2016, EDA made ACC funds available
through the POWER Initiative for coal-impacted communities and those funds are noted in the chart with *. For more
information, see CRS Report R46015, The POWER Initiative: Energy Transition as Economic Development, by Michael H.
Cecire.

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ACC and NCC Awards
Error! Reference source not found. shows the EDA’s ACC, NCC, and POWER initiative projects, by
state, from FY2015 to FY2020. In FY2015 and FY2016, EDA assisted 52 projects with ACC funding,
including awards for national technical assistance. The funding was administered in partnership with the
POWER Initiative. From FY2017 to FY2020 EDA provided approximately $127 million of ACC funding
to 122 projects in 22 states. Since NCC was launched in FY2020, the EDA has provided approximately
$3.4 million of NCC funding to three projects, including one award for national technical assistance.
Figure 1. EDA’s ACC, NCC, and POWER Initiative Projects, by State
FY2015–FY2020

Source: Map created by CRS from EDA grant award data, February 2021.
Notes: The location of POWER grants indicate awards made by EDA in FY2015 and FY2016. Map includes EDA POWER
grants and excludes grants awarded by other federal agencies through the POWER Initiative. Awards include technical
assistance projects, which could include national organizations located outside of a coal-impacted area.
Considerations
EDA partnered with two national organizations to disseminate promising strategies among coal-impacted
communities. EDA also directs a portion of NCC funds to national technical assistance, which creates a
community of practice for applicants and grantees. Technical assistance may further assist economically
distressed small, rural, and underserved communities with pre-development activities, as noted in the
explanatory statement accompanying the agency’s FY2021 appropriations.
Federal assistance may support communities with economic transitions as they face declining levels of
economic activity, population, or private investment. The ACC and NCC initiatives help communities
respond to changes in energy- and resource-based industries, and the EAA program is available for
communities seeking assistance in response to other industry shifts, events, and factors. Congress may
consider additional criteria or initiatives if it seeks to provide economic and energy transition assistance
for other industry types or regions.

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For information about the EDA, see CRS Report R41241. For information about energy transition as
economic development, see CRS Report R46015.
Jim Uzel, GIS Analyst, developed the map included in this Insight.

Author Information

Julie M. Lawhorn

Analyst in Economic Development Policy




Disclaimer
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