US POWER initiative

Country / jurisdiction: United States · Year: 2015 · Status: In force · Level: National · Type: Voluntary

In 2015, the Obama administration launched the Partnerships for Opportunity and Workforce and Economic Revitalization Initiative (POWER) to direct federal assistance to communities and regions facing job losses related to the energy transition in mining, coal power plants and coal supply chain industries.

POWER is a multi-agency effort to support federal economic and workforce development programmes to assist communities facing downturns in the coal mining and power sectors. The POWER funds can be used by regions to diversify economies, create new jobs, attract new investments that create jobs, and provide workforce services and skills training that lead to industry-recognised credentials for high-quality jobs.

The Power Initiative’s funding is provided by the US Congress. Upon its launch, the POWER Initiative was spearheaded by the Economic Development Administration, with sizeable funding coming from the Appalachian Regional Commission (ARC), Small Business Administration and Department of Labor. Since the Trump Administration, the ARC retained sole oversight over the programme. The ARC is an economic development agency of the federal government and 13 state governments working in 423 counties (accounting for 26 million people) in the 13 Appalachian states with a mission to “build community capacity and strengthen economic growth in Appalachia”.

Under the POWER Initiative, the ARC awards implementation grants of up to USD 1.5 million, technical assistance grants of up to USD 50 000, and broadband deployment grants of up to USD 2.5 million. The programme awards funding through a competitive bidding process each year.

POWER investment priorities areas include: building a competitive workforce, fostering entrepreneurial activities, developing industry clusters in communities, and broadband.

Within the workforce development area, training projects are expected to focus on the upward mobility for participants through upskilling, retooling and establishing distinct career pathways. Workforce projects should also strive increase labour participation rates by targeting both underemployed workers as well as by recruiting and training people who have left the workforce. Since 2015 , under the POWER Initiative, ARC has invested over USD 319.3 million in 395 projects in 358 coal-dependent counties throughout the Appalachian region. Those investments are expected to create or retain over 36 600 jobs, leverage more than USD 1.5 billion in private investment into the region and groom nearly 14 300 workers and students for opportunities in entrepreneurship, broadband development, tourism and other sectors.

For example, ARC in 2021 offered several grants to revitalize economic and job opportunities in the Appalachian region. Among other funds, it granted USD 1.5 million to Coalfield Development Corporation in Wayne, West Virginia for the Appalachia FORWARD (Freight Opportunities Reducing Waste and Revitalizing Development) project. The funds will be used to offer technical assistance to entrepreneurs and social organisations in the transport and recycling sectors. The programme will also train and hire people in sustainable recycling and reuse of materials, as well as perform research on sustainable upcycling and repair business models. The grant is expected to create 50 new jobs, six new business and upskill 300 workers.

Also in 2021, ARC awarded a grant to Frostburg State University in Frostburg, Maryland to implement Phase II of the Western Maryland Advanced Technology Center Development Project at Frostburg State University Innovation Park. The facility aims to support the growth of new industries that can play a key role in the region’s revitalisation and create new jobs, including information technology, renewable and resilient energy, green construction materials manufacturing, environmental hazard removal, and biotech laboratory testing and analysis. Located in a designated Opportunity Zone, the facility plans to offer training and education in new technologies to residents in three surrounding counties. The project is projected to create 18 new businesses and 125 jobs, retain 230 jobs, provide 40 existing businesses access to skilled workers, and stimulate an additional USD 2.5 million in private investment in the region.

ARC’s largest grant package to date under POWER was for USD 52 million in 2021, followed by the announcement of an additional USD 21 million in grants in 2022. The 2022 grants will go to 21 projects impacting 211 countries.

Official source: https://iea.blob.core.windows.net/assets/953c5393-2c5b-4746-bf8e-016332380221/Skillsdevelopmentandinclusivityforcleanenergytransitions.pdf