Charting a Future Course with DOE: Opportunities for ECA Communities Reusing DOE Sites and Property

On June 20, 2024, Energy Communities Alliance (ECA) hosted the Roundtable: Opportunities for ECA Communities Reusing DOE Sites and Property at the Department of Energy’s (DOE) Forrestal Building in Washington, D.C. to discuss the relationship between Community Reuse Organizations (CROs) and DOE’s Office of Environmental Management (EM), and the fundamental role that partnership plays in ensuring stable and steady progress forward for DOE’s cleanup mission and for nearby communities.

The discussion kicked off with remarks from EM-1, Senior Advisor Candice Robertson and EM-2 Principal Deputy Assistant Secretary Jeffery Avery. Robertson highlighted the importance of EM engagement with communities and the impact it has on the EM mission. She recalled her time serving as a County Commissioner for Nye County, Nevada and spoke to the history of dialogue between ECA and EM. As a part of that ongoing conversation, Robertson recounted the visits she has made in past months to sites such as Savannah River Site (SRS), Hanford, and the Waste Isolation Pilot Plant (WIPP). Robertson clarified that DOE is keenly focused on hearing the perspectives of communities, and that community engagement with DOE is vital to shaping the future of DOE’s mission and the success of the EM program.

She also discussed workforce, the Cleanup to Clean Energy Initiative, upcoming projects and accomplishments of EM at each DOE site, among other issues.

A History of Community Reuse Organizations

 ECA Executive Director Seth Kirshenberg provided a detailed history the evolution of CROs. CROs were created after the end of the Cold War, as a part of a DOE program to minimize the social and economic impacts of workforce restructuring near DOE facilities. Through Section 3161 of the Defense Authorization Act of 1993, DOE initiated a community transition program to minimize the social and economic impacts of workforce restructuring on communities near DOE facilities and the creation of “Community Reuse Organizations”. DOE began downsizing, shuttering nuclear weapons sites and cutting tens of thousands of jobs along with them. DOE worked to negotiate pension, workforce transition, and other issues, in addition to providing community transition grants.

 The original mission of CROs was to assist the transition of the contractor workforce, through ensuring the continuity of pension and medical benefits. Between 1993 and 2001, fifteen (15) different communities established CROs. Implementation varied at each site.

 CROs developed numerous activities drawn from grant funds, such as revolving loan programs, seed grants to small and startup businesses, business recruitment programs, building out infrastructure for industrial parks and offices, and establishing worker training programs. Some CROs became involved in excess personal property and real property transfers to promote economic development.

 Although the last year of CRO funding was in financial year (FY) 2005, and all funds were expended by FY 2015, programs at many sites are still on-going. No active CRO today receives grant funding from DOE, but several CROs that have retained their status are eligible to receive excess personal and real property from DOE. In some cases, the transfer of excess property can allow the re use pre-existing infrastructure to attract new businesses, which helps to promote economic diversification and job growth. Today, the remaining CROs, and organizations like them, are tasked with a very different mission, one focused on economic revitalization and growth rather than downsizing and transition. 

 To see the presentation on the history of CROs, click here.

 Real & Personal Property Transfer

 To fulfill that mission, CROs and communities need to understand real and personal property transfer. Real property includes the land in addition to buildings and infrastructure on the land. Personal property is everything that isn’t tied down, such as equipment, tools, and computers. 

 CROs can benefit from DOE’s ability to dispose of real property for the purposes of economic development. David Steinau, Senior Realty Officer for the Office of Asset Management spoke to the steps and requirements of this process. In addition to Section 161g of the Atomic Energy Act, DOE can convey real property to CROs and communities for the purpose of economic development as defined in title 10 Code of Federal Regulations Part 770. Local governments, as well as CROs may request a property transfer under this regulation, including a request for indemnification of the property. Once a request has been submitted, the real property must be deemed to be appropriate for transfer, undergo internal screening by DOE, and the relevant Program Office must determine that an economic development transfer is the suitable disposal method.

 DOE also possesses the authority to donate surplus personal property to CROs. Aundrea Clifton, Personal Property Specialist for the Office of Asset Management spoke on the process of, and definitions involved in determining what property is eligible for a personal property transfer. Property eligible to be disposed of as “excess property” must be determined by the agency to no longer be of use to the agency’s mission. Once personal property is declared excess, it will be screened for internal use or use by another federal agency before being eligible for donation to a CRO. Personal property can be declared “surplus” as well, meaning that the property is no longer determined to be of use to DOE by an external agency, the General Services Administration (GSA). Federal surplus property is received and distributed to eligible recipients by a State Agency for Surplus Property (SASP), who CROs can and should submit their requests for personal property directly to.

 Mr. Steinau and Mrs. Clifton identified multiple paths for a CRO or community to take to acquire personal or real property, and communication is the first step to embark on any of those paths. Communities must clearly convey to DOE what they want from the DOE. They should understand the risks and implications of acquiring the desired property, and, once they talk to DOE, they can work with DOE to find and pursue an allowable path to acquire it.

 To see the presentation on real property, click here. For personal property, click here.

Workforce Development

EM-4 Kristen Ellis, Associate Principal Deputy Assistant Secretary for the Office of Regulatory and Policy Affairs, opened the conversation on workforce development across the sites. Encouraging conversations about workforce needs and development is part of an ongoing initiative by ECA, the Energy Facility Contractors Group (EFCOG) and DOE to successfully address workforce development challenges experienced at every DOE site. This meeting follows on a successful dialogue that has taken ECA-EFCOG-DOE to Los Alamos, the Hanford Site, and the Savannah River Site twice, and several other meetings between ECA, EM and EFCOG leadership since the initiative began at the Waste Management Symposium in 2022.

The range of site workforce concerns is wide, and every site faces a unique blend of these issues. All these issues should be important to the DOE, and a few common challenges came to light during the discussion. Common challenges across sites included housing shortages, need for additional childcare services, and the myriad issues the remote location of many sites may pose to worker flexibility and transportation[1] . Competition between different missions across DOE, the labs, and military bases, in addition to competition with contractors and private industry for a limited pool of labor can result in labor shortages and pose a threat to skill turnover at many sites. Furthermore, attrition also endangers skill turnover and casts a shadow on the longevity of productivity at numerous sites, and attendees discussed strategies to engage, educate, and equip the incoming workforce with the necessary skills to succeed.

Key to these efforts to combat workforce concerns are trades and technical training programs, such as apprenticeships, internships, and more, and what funding support DOE can provide to these efforts. CROs can, at many sites, act as the conduit to support these programs – but they need to work with, and be supported by, DOE to serve this crucial role.

DOE Recognition of CROs

A common question that CROs posed during the Roundtable is who should CROs and sites look to as their point of contact within DOE. Furthermore, they questioned what their relationship with DOE looks like, and how can DOE and the communities structure their relationship to best serve each other.

The Tri City Development Council (TRIDEC), Savannah River Site Community Reuse Organization (SRSCRO), Paducah Area Community Reuse Organization (PACRO), and the Regional Development Corporation (RDC) detailed the history of their organizations, what programs and initiatives have achieved success, and what challenges they face now.

Representatives from SRSCRO highlighted their long-term success utilizing property transfers to keep value local and generate opportunities for growth. In addition, they described their experience coordinating with DOE to secure unsolicited funding to address workforce needs. SRSCRO also addressed shortages in housing and childcare services, emphasizing that this infrastructure is crucial to attracting and maintaining the workforce.

PACRO voiced its concerns regarding supply chain concerns, chiefly due to shortages in infrastructure and labor. The Organization highlighted how DOE grant programs and energy community tax credits could help CROs to address these shortages.

Members of the RDC spoke to the power of cooperation, drawing from partnerships with colleges, Tribal governments, and local contractors in the region to fund internships and community programs combatting addiction. However, the RDC echoed similar challenges about acquiring additional assistance for workforce development and capacity building that many communities experience.

TRIDEC representatives shared that previous DOE grant funding through the 3161 Program supported the creation of 11,000 jobs in the region and leveraged over $7 million in non-federal support.  They also discussed clean energy and decarbonization projects in development on former DOE land that was transferred to the community in 2016, and their current efforts to address regional workforce development needs.

Representatives from other communities expressed an interest in the possibility of forming their own CROs. To achieve their mutual goals, CROs and DOE must consider how to best format their relationship in a way that aligns their priorities. CROs should consider what resources they need to accomplish their development goals, and DOE should be open to listening to and accommodating these considerations. 

Funding and the DOE Relationship

One of the largest challenges for CROs is how to get funding to their sites and communities. Representatives from every community agreed that while the competitive grant process is useful, funding across the complex would better provide for each community’s needs. Although every community faces different challenges, all of these challenges are valid and important and require a baseline of universal support. Other funding concerns included regional funding being spread too thin to be utilized effectively, the loss of property tax revenue when DOE buys private property, and how to start a conversation with DOE to obtain tax credits for a site.

The first step in resolving these challenges starts with initiating a conversation with DOE, and asking questions about the concentration of regional funding, DOE colocation, and tax opportunities.

The conversation also touched upon the relationship the National Nuclear Security Administration (NNSA) and the Department of Defense (DOD) can form with their sites. DOD can enter into financial agreements with communities to support infrastructure development that supports the military base and community via a grant program, the Defense Community Infrastructure Program. [2] Should communities and DOE consider pursuing a similar program?

Many of these questions will require further conversations in the future, but the discussion made clear that sites and CROs want a more dynamic relationship with DOE. There is value in pursuing this goal because CROs support the communities that support DOE sites and are instrumental in developing and monitoring economic activity at DOE sites and communities.

Next Steps

Communities found the most success when the local government, CROs, and DOE collaborated to meet community and DOE needs and progress on shared goals. Through partnerships with high schools, institutions of higher education, tribal governments, industry, and contractors, the CRO can fund workforce training and infrastructure development with financial support from DOE/NNSA. Internship, apprenticeship, and boot-camp programs have been key to equipping young professionals with the necessary skills and experience to immediately transition into local workforces.

Regarding future steps, communities highlighted the utility of workforce projections provided by EFCOG, and the discussion addressed how to make future projections better reflect information pertinent to each site’s needs, and the importance of sharing projections with educational institutions. Many communities voiced their commitment to and interest in deploying new, clean, energy technologies as apart of DOE’s Cleanup to Clean Energy Initiative[3] . They also noted that the CROs could have assisted DOE in implementing the program at multiple sites to ensure clean energy projects and land use decisions aligned with communities’ visions. Just as connecting within communities or with DOE is important, connecting across communities could be an important step to ensure future progress. Creating and sharing educational resources, such as regional skills maps, employer analyses, and matrices describing qualities and best practices across sites were discussed as potential initiatives.

ECA looks forward to providing updates as this initiative progresses and evolves.

To view the meeting agenda, click here.

To view presentations shared during the meeting about the history of CRO sites, personal property and property disposal, and transfer of real property, click here.