How Utilities Can Mitigate Risks through Robust Community Benefits Plans

The briefing explains how Community Benefits Plans (CBPs) serve as a tool for utilities to secure federal funding via the Energy Infrastructure Reinvestment (EIR) program while reducing project risks. It details how meaningful community engagement can prevent costly project delays and cancellations, how workforce training and unionization improve operational efficiency, and how addressing energy poverty and diversity goals enhances a utility's social license to operate and ESG performance.

• The Energy Infrastructure Reinvestment (EIR) program provides $250 billion in low-cost financing for projects utilizing operating or legacy fossil fuel infrastructure, such as coal mines, power plants, pipelines, and gas stations. To qualify, applicants must submit a Community Benefits Plan (CBP) that outlines community priorities and the developer's commitments across four DOE categories: Community and Labor Engagement, Quality Jobs, Diversity, Equity, Inclusion, and Accessibility (DEIA), and Implementing Justice40.
• Local opposition is a primary driver of project failure; by the end of 2023, 15% of US counties had enacted restrictions on wind or solar development. Analysis shows nearly 30% of opposition in 53 stalled utility-scale renewable projects resulted from a lack of meaningful community inclusion. Such cancellations lead to significant sunk costs, averaging over $2 million for solar projects and $7.5 million for wind projects.
• Robust CBPs mitigate workforce shortages and operational risks by utilizing EIR financing for training programs through partnerships with community colleges and minority-serving institutions. The document notes that unionized workers—who are more prevalent in the utility sector (20% unionization rate) than the general private sector (6%)—tend to be more productive and loyal, which reduces employee turnover and benefits the company's bottom line.
• Utilities can improve their social license to operate and meet ESG goals by using CBPs to address energy poverty and equity. With over one in seven families experiencing energy poverty (spending more than 10% of income on energy) and $32 billion in late bill payments as of late 2020, CBPs that reduce energy burden and set hiring goals for underserved communities help utilities manage reputational risks and attract investors.

APA

RMI (2024). How Utilities Can Mitigate Risks through Robust Community Benefits Plans. https://rmi.org/resources/how-utilities-can-mitigate-risks-through-robust-community-benefits-plans/

Chicago

RMI. How Utilities Can Mitigate Risks through Robust Community Benefits Plans. 2024. https://rmi.org/resources/how-utilities-can-mitigate-risks-through-robust-community-benefits-plans/.

Wikipedia

{{cite report |author=RMI |title=How Utilities Can Mitigate Risks through Robust Community Benefits Plans |date=7 May 2024 |url=https://rmi.org/resources/how-utilities-can-mitigate-risks-through-robust-community-benefits-plans/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2024how, author = {{RMI}}, title = {{How Utilities Can Mitigate Risks through Robust Community Benefits Plans}}, institution = {RMI}, year = {2024}, month = may, url = {https://rmi.org/resources/how-utilities-can-mitigate-risks-through-robust-community-benefits-plans/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }