Community Benefits Plans: Driving Equitable Clean Energy Development

The document distinguishes between non-binding community benefits plans (CBPs) and legally binding community benefit agreements (CBAs), detailing how the U.S. Department of Energy (DOE) integrates CBPs into funding and financing programs under the IIJA and IRA to drive equitable energy transitions.

• The U.S. Department of Energy (DOE) mandates community benefits plans (CBPs) for all funding and financing programs under the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) of 2022. For most grant programs, the CBP is a significant component of the evaluation, accounting for 20 percent of the total technical merit score.
• CBPs and CBAs differ primarily in their legal status: CBPs are non-binding agreements that outline community priorities and developer commitments, whereas CBAs are legally binding contracts enforceable in court. While a CBA is not a requirement for a DOE application, it can result from the CBP process.
• Potential benefits included in a CBP can range from financial contributions to community organizations and investments in affordable housing to targeted hiring of underrepresented groups (such as people of color or formerly incarcerated individuals) and the provision of prevailing wages and apprenticeship programs.
• The DOE evaluates CBPs based on four pillars: meaningful community and labor engagement, investment in the American workforce, diversity, equity, inclusion, and accessibility (DEIA), and alignment with the Justice40 Initiative, which aims to direct 40 percent of clean energy investment benefits to disadvantaged communities.
• For the Loan Programs Office (LPO), which provides low-cost financing rather than grants, the quality of a CBP is used to assess loan repayment prospects, as strong community and labor engagement reduces project implementation risks and opposition.

APA

RMI (2023). Community Benefits Plans: Driving Equitable Clean Energy Development. https://rmi.org/resources/community-benefits-plans-driving-equitable-clean-energy-development/

Chicago

RMI. Community Benefits Plans: Driving Equitable Clean Energy Development. 2023. https://rmi.org/resources/community-benefits-plans-driving-equitable-clean-energy-development/.

Wikipedia

{{cite report |author=RMI |title=Community Benefits Plans: Driving Equitable Clean Energy Development |date=25 September 2023 |url=https://rmi.org/resources/community-benefits-plans-driving-equitable-clean-energy-development/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2023community, author = {{RMI}}, title = {{Community Benefits Plans: Driving Equitable Clean Energy Development}}, institution = {RMI}, year = {2023}, month = sep, url = {https://rmi.org/resources/community-benefits-plans-driving-equitable-clean-energy-development/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }