Community Benefits Plans: Driving Equitable Clean Energy Development

This briefing by RMI explains the role of Community Benefits Plans (CBPs) and Community Benefit Agreements (CBAs) in the United States energy transition, specifically focusing on the requirements set by the Department of Energy (DOE) for funding under the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) of 2022.

• The U.S. Department of Energy (DOE) requires community benefits plans (CBPs) for all funding opportunities 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 application, accounting for 20 percent of the overall technical merit score.
• There is a critical distinction between Community Benefits Plans (CBPs) and Community Benefit Agreements (CBAs). CBPs are non-binding agreements developed by developers and community organizations to outline priorities and commitments. In contrast, CBAs are legally binding and enforceable in court, providing a stronger guarantee that developers will fulfill their commitments, although they are more difficult to negotiate and implement.
• CBPs can include a variety of specific community benefits, such as financial contributions to community organizations, investments in affordable housing, environmental protections for health and natural resources, targeted hiring of local residents and underrepresented groups, and the provision of training and apprenticeship programs. They may also include worker protections like prevailing wages and the right to form a union.
• The DOE evaluates CBPs based on four key 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 at least 40 percent of clean energy investment benefits to disadvantaged communities.
• While grant applications are scored on technical merit, the DOE's Loan Programs Office (LPO) uses the quality of a CBP to assess loan repayment prospects. The LPO views early community and labor engagement and a clear workforce plan as factors that reduce 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} }