The rural benefits of renewablesÂ
Rural communities are seeing a boom in renewable energy development. Whether it’s wind or solar, communities reap the benefits from increased tax revenues, new jobs and local lease payments. Better yet, communities can unlock additional benefits through Community Benefit Agreements (CBAs).
A CBA is a project-specific arrangement between renewable energy developers and local communities that outlines specific benefits the developer will provide. CBAs are not one-size-fits-all and can be customized to each community’s needs.
Among the most common types of benefits are community benefit funds, an annual or one-time financial donation to a local board that distributes the funds across the community, and direct investments, a financial contribution to local programs such as labor training. Additional kinds of benefits include labor provisions, contributions to local grants, and donations to emergency services and schools.
For example, one developer committed $250 per megawatt for a 160-megawatt project to a community benefit fund, which totaled $40,000 annually for various local projects.
CBAs empower residents to shape local renewable energy by shifting the balance of power from developers to the residents. The agreements promote collaboration to ensure projects provide meaningful contributions beyond the typical lease payments and tax revenues. Rural communities can benefit greatly from this process, as CBAs can address needs through tailored solutions.
A key element to capturing the full opportunity of a CBA is engaging stakeholders early and often, ensuring that a wide range of views and needs can be addressed. As renewable energy development continues to grow in rural areas, CBAs enable residents to maximize benefits and have a meaningful voice in decision-making.
– Mallory Tope, Center for Rural Affairs, Nevada, Iowa