The Fight

Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Q&A

Do Community Benefit Agreements Actually Work?

A conversation with Matilda Krieder of the National Renewable Energy Laboratory

Do Community Benefit Agreements Actually Work?

This week I spoke with Matilda Krieder, a researcher at the National Renewable Energy Laboratory, about a database she and her colleagues released this week showing how onshore and offshore wind developers use community benefit agreements – a form of compact aimed at improving local benefits from projects. We talked about whether communities really see the agreements as helpful or if there’s a better way.

The following is an abridged version of our conversation edited for clarity and space:

How much have you heard from people concerned that community benefit agreements are a form of financial influence or a false promise where they don’t receive real benefits?

I haven’t heard very much about the not-receiving end of things — and the reason I’ll say that is at least on the land-based wind side, an actual community benefit agreement is pretty uncommon. The vast majority of the time it’s just donations. And that, I think, is less likely to have the false promise thing because developers are handing over a one-time check, so there’s not really a perception that it won’t come to fruition.

So walk me through what your research shows with respect to how effective community benefit agreements are in assuaging local opposition to a project?

Unfortunately my research is not super helpful there. Because we didn’t look at failed projects, I don’t think I can say anything about whether [community benefit agreements] help or not.

But the existing literature that other people have done is not really positive on the connection between community benefits and improving community perception of projects, which is really interesting to me because I think people in the U.S. are really buying into it. Especially for offshore wind. So much pressure is being put on community benefits agreements as the thing that’ll change everything. And I support developers giving them, even if it doesn’t change anything, because it’s a net good. But I do wonder if developers or anybody setting regulations are reading what’s been studied. If so, I don’t know if they’d be putting all their eggs in this basket.

Okay then what if you walked me through the benefits you’ve found, at least in wind?

So it’s very different from offshore wind to land-based wind. In offshore wind, we’re seeing huge amounts of money, especially in the communities that host cable landings for the projects, because that’s the only point in offshore wind where the local government has any way to stop or change the way the project is developed. The cable landing is where you’re seeing $150 million [contributions]. And that hasn’t been happening long enough to measure the impacts of school funding or taxes over time.

The agreements that are more likely to be impactful are the ones that are more specific. I point to the Salem offshore wind terminal as a positive example because it’s such specific funding. You can tell they did the work to understand what the community’s priorities were and they directed funding to those areas.

In terms of land-based wind, it would be up to who you talk to. I’ve talked to county commissioners who’ve spoken really positively about the things that would be considered small potatoes. Not millions of dollars but directed funding in a specific way that met the community’s priorities and that changed people’s perception of the project. That’s a very small sample size, so you can’t identify a trend there, but I think it has potential.

I’m starting to view the donation side more positively than a lot of people too because a community benefit agreement most of the time is going to the local government, [and] a lot of people distrust their local government.

So instead, donations directly to services instead of county or local governments?

Yeah. That’s just a function of how in agreements, 95% of the funding goes to a local government. And people may not ever know what happens to it after that. It’s less visible.

What are you hearing from communities about community benefit agreements then?

I hear, how do we get one? The problem is, it’s still entirely in the developers’ hands so sometimes I feel a bit limited in the advice I can give to get one. It kind of comes down to what leverage you have with a developer.

This article is exclusively
for Heatmap Plus subscribers.

Go deeper inside the politics, projects, and personalities
shaping the energy transition.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Spotlight

The Real vs. Imagined Problems with Data Centers’ Water Use

How much water is too much?

Water, a data center, and a protester.
Heatmap Illustration/Getty Images

The data center water issues are real – but they aren’t what you think.

Too often, I hear people say the number one reason they’re against data center development is water use. Heatmap’s data shows water consumption is historically the reason cited most often by activists when opposing projects. This complaint, they often say, is rooted in the fear that this nascent buildout of AI infrastructure will simply draw so much H2O it will leave little liquid left for the rest of us.

Keep reading...Show less
Yellow
Hotspots

Texas Is the Eye of the Bipartisan Data Center Hurricane

And more of this week’s biggest news around project fights.

The United States.
Heatmap Illustration/Getty Images

1. Matagorda County, Texas – The bipartisan data center backlash is now so powerful that a top Republican Texas state official is doing an event with the Democrat vying to replace him.

  • On Thursday afternoon, outgoing Republican agriculture commissioner Sid Miller and Democratic candidate Clayton Tucker are marqueeing a forum hosted by Matagorda County Against Data Centers, an opposition group that appears to also monitor solar and battery storage for potential opposition, too. Miller is leaving his post at the end of the year after being defeated in a GOP primary by Nate Sheets, who was supported by Gov. Greg Abbott.
  • This bipartisan forum will take place after Abbott himself called for new laws and regulations on data centers in a letter to Texas Public Utility Commission Chair Thomas Gleeson and ERCOT CEO Pablo Vegas. Abbott said he’d push to require data centers to pay costs for electric infrastructure and use “water-efficient technologies such as closed-loop cooling systems.” Also on the to-do list? Mandatory property setbacks and noise reduction.
  • It’s becoming clear the frustrations against AI infrastructure and associated energy projects are starting to boil without a vent. The first county to issue a data center moratorium in Texas has withdrawn the effort after facing a $100 million lawsuit from a developer, and other counties are delaying future moratoria on fears of legal risks. Where will all of this frustration go without the option to pause development locally?
  • We’re starting to see Texas legislators seek to channel this anger. Last week, Rep. Veronica Escobar – a Democrat who represents the dry, data center-anxious city of El Paso – offered an amendment in a House committee to block funding for the EPA’s new data center construction rules. The amendment failed but I’d hardly be surprised to see this sort of rider gain traction if Democrats retake the lower chamber, especially if data centers are a major election issue.

2. Albany County, New York – As we await Gov. Kathy Hochul’s decision on whether to enact the nation’s first statewide moratorium on data centers, I wanted to bring up some pretty crucial facts about the situation in the Empire State.

Keep reading...Show less
Yellow
Q&A

One Investor’s Climate ‘Realism’ In the Data Center Era

A conversation with Craig Lawrence of Energy Transition Ventures

The Q&A subject.
Heatmap Illustration

This week’s conversation is one of my favorites so far – Craig Lawrence of Energy Transition Ventures. Lawrence has been around the block and back again when it comes to the cleantech investment landscape. So I took note when he got into a brief back-and-forth with an activist fighting data centers in Indiana who claimed there were “so many clean energy people who no longer care about climate change” because they “now support fossil fuel data centers if some nominal amount is met with clean energy.”

Lawrence replied, “Some of us are simply realists.”

Keep reading...Show less
Yellow