ECONOMIC ISSUES

Communities and DOE can have a mutually beneficial relationship, as the work at a site can attract a diverse, skilled workforce to the region. The community can also take actions—from economic development to housing and recreation—that will continue to attract new generations of a site/laboratory workforce.

Some sites are also managed by for-profit contractors, who are required to pay local taxes to the community, allowing the community to fund critical municipal services that benefit constituents and the DOE site. Some sites receive Payments in Lieu of Taxes (PILT), which are funds paid to the local governments by the federal government for hosting the site to offset taxes the local governments would have otherwise received.

DOE and its contractors have programs that include working with local schools’ STEM programs, workforce training, internships and fellowships. Additionally, each year the Department receives appropriations to invest in workforce programs such as academic partnerships and programs with tribes and Minority Serving Institutions (MSIs).

These programs become increasingly important as the current DOE workforce ages and retires in the coming years, taking their technical skills and institutional knowledge with them. Yet cleanup at certain DOE sites is still decades away from completion. DOE and its contractors have developed partnerships with local universities and technical colleges, which creates opportunities for recruitment and retainment of the next generation of the EM workforce, simultaneously benefiting local economies and education. Workforce development grants from DOE in South Carolina, New Mexico, Tennessee, and Washington State have proven successful. Further, with DOE’s encouragement, site leaders and contractors can also support community education and workforce development by personally and regularly participating in community-sponsored events.

PILT are payments made by DOE to eligible cities and counties that host defense nuclear facilities on acquired property previously subject to state and local taxes. Communities in receipt of PILT use it to support vital local government enterprises such as school and hospital districts, roads and other critical infrastructure, and emergency services such as police and fire departments. Specific defense communities receive PILT payments from the office that manages the site.

There have been instances in the past when administrations’ budgets have proposed the elimination of PILT at certain sites without explanation to the host communities. To avoid such scenarios, it is critical that DOE communicates the importance of PILT to the Office of Management and Budget, and communities should stay involved each budget cycle during the budget request process and appropriations process to ensure that this critical funding is continued year after year.

Yes. When DOE has excess land, the Department has authority to transfer the land to other federal or non-federal entities, including local governments or community reuse (redevelopment) organizations.

DOE has the authority to either convey land through the agency’s own legal authorities or through the typical federal process when conveying land. At “defense facilities” (most EM sites), DOE can convey land to the local government and community reuse organization through the Atomic Energy Act Section 161g (42 USC 2201g). DOE can convey this land at less than fair market value. DOE has used this authority in Oak Ridge, Los Alamos, Richland, Savannah River, Mound and other sites around the country. DOE typically, but not always follows the process for the conveyance in 10 CFR Part 770, Transfer of Real Property at Defense Nuclear Facilities for Economic Development.

DOE, after declaring land excess and surplus, has also used the process in the Federal Property and Administrative Services Act to convey land at fair market value through a negotiated sale (42 U.S.C. 345(b)(8)), through a fair market value sale, and through a public benefit conveyance for parks, airports, schools, housing, and other uses.

Further, there have also been cases in which DOE staff did not support a land conveyance and therefore Congress enacted special legislation directing DOE to convey it. To date, tens of thousands of acres of land have been conveyed to communities.

If a community is interested in acquiring land from DOE, the first step is to contact the DOE site manager. It is important to understand that the process is not simple and can take time. DOE will need to identify that the site has been remediated to a level that permits the intended use, undertake a NEPA review of the action and determines if the site is needed for mission.

Yes. DOE can provide an indemnification (see 10 CFR Part 770) to provide protection to the community against lawsuits from any contamination that existed on the land prior to the conveyance. DOE can also provide a Covenant Deferral Request (CDR) if the land is not contaminated. The Department will remediate the site. DOE submits the CDR and CPD to local EPA or the authorized state regulatory agency to obtain regulatory approval per the site-specific regulatory framework.

Specifically, CERCLA provides liability protections for entities that acquire contaminated land. Specifically, DOE is required to provide a covenant to the acquiring entity that all remediation that is protective of human health and the environment has been taken.

A provision in CERCLA (42 U.S.C. 9601(16)) provides that DOE is responsible for “natural resources damages” caused by the contamination at the DOE sites. Natural resources are defined broadly to include land, fish, wildlife, biota, air, water, groundwater, drinking water supplies and other such resources. Additionally, the resource must belong to, be managed by, held in trust by, appertain to or otherwise be controlled by the United States, any State, an Indian Tribe, a local government or a foreign government. The determination of natural resources damages is a lengthy process.

Damages are defined as injury to, destruction of, or loss of natural resources in CERCLA §§9601(6); 9607(a)(4)(C); 9611(b). The measure of damages under CERCLA is the cost of restoring injured natural resources to their baseline condition, compensation for the interim loss of injured resources pending recovery, and the reasonable costs of a damage assessment.