; and (B) a publicly announced planned major reduction in Department spending that would directly and adversely affect a community, if the Secretary determines that an action described in subparagraph (A) or this subparagraph is likely to have a direct and significantly adverse consequence on the affected community. (2) Conditions In the case of a publicly announced planned reduction in the Department spending, the closure or realignment of an electric generating station, assistance may be made under paragraph (1) only if the reduction, closure or realignment, cancellation or termination, or failure will have a direct and significant adverse impact on a community or its residents. (3) Community adjustment and economic diversification program (A) In the case of a State or local government eligible for assistance under paragraph (1), the Secretary may also make grants, conclude cooperative agreements, and supplement other Federal funds in order to assist the State, Tribal, county, or local government to carry out a community adjustment and economic diversification program (including State industrial extension or modernization efforts to facilitate the economic diversification of displaced workers) in addition to planning such a program. (B) The Secretary shall establish criteria for the selection of community adjustment and economic diversification programs to receive assistance under subparagraph (A). Such criteria shall include a requirement that the State, Tribal, county, or local government agree— (i) to provide not less than 10 percent of the funding for the program from non-Federal sources; (ii) to provide business planning and market exploration services under the program to displaced workers that seek modernization or diversification assistance