Community Benefits Plans: 101

Beth Sutter | March 5, 2024

What is a Community Benefits Plan?

A Community Benefits Plan (CBP) is a mandatory component for all projects receiving funding from Bipartisan Infrastructure Law (BIL) and Inflation Reduction Act (IRA). These plans establish the community and labor benefits that will be embedded within the project. A CBP is a key part of the application and, if selected, will continue to be throughout the project's life. You’ll be required to report on fulfillment of milestones and deliverables, though the CBP can evolve throughout the project. A well-crafted CBP can help your proposal stand out and be a deciding factor on whether your project is selected for BIL and IRA funding. Keep in mind: a community benefits plan is good for the community – and your business! Investing in a robust CBP demonstrates a commitment to enhancing both the project and the community it serves, making it a valuable asset for both the community and your business.

What is Included?

Community Benefits Plans are a major factor considered by reviewers when selecting projects for funding. CBPs typically make up 20% of the evaluation criteria and is a key element of project success. CBPs are based on a set of four core policy priorities, with all four categories equally scored.

1. Community and Labor Engagement

This section defines previous and planned stakeholder engagement, laying the groundwork for any workforce or community agreements.

2. Investment in America’s Workforce

This section focuses on efforts to invest in the local workforce, support training initiative, and create quality jobs, including workers' rights.

3. Diversity, Equity, Inclusion, and Accessibility (DEIA)

This section aims to advance DEIA initiatives, including access to jobs and other financial opportunities.

4. Justice40 Initiative

This initiative requires that 40% of benefits from a federally funded project flow to disadvantaged communities (DACs). CBPs should outline 1) what benefits the project will provide and 2) how you plan to mitigate any potential negative impacts to any DACs. Policy priorities include:

- - a decrease in energy burden
  - a decrease in environmental exposure and burdens
  - an increase in access to low-cost capital
  - an increase in high-quality job creation, the clean energy job pipeline, and job training for individuals
  - increases in clean energy enterprise creation and contracting (e.g., minority-owned or disadvantaged business enterprises)
  - increases in energy democracy, including community ownership
  - increased parity in clean energy technology access and adoption
  - an increase in energy resilience

What is a DAC?

Disadvantaged communities (DACs) are marginalized, underserved, and overburdened by pollution. There is an interactive tool—the Climate and Economic Justice Screening Tool (CEJST)—that indicates which U.S. census tracts experience burdens. Federal agencies use the tool to help identify DACs that will benefit from programs included in the Justice40 Initiative. Use the tool to learn about the burdens in your project area and outline how the project will benefit the community in areas such as clean energy, training and workforce development, and legacy pollution.

How Do I Start?

1. Determine the project impact area:

The project location is more than an address. Take into consideration the area that will be impacted—directly or indirectly—by the project. What communities are nearby? Where will the workforce travel from? Also, consider the environmental area of impact. Community and Labor Engagement

2. Execute a targeted needs assessment:

A data-informed understanding of the project area and affected communities is a key component of a strong CBP. Show you have studied the area’s needs and expectations, and how the project will address them. Tools and data sets—such as the Census and CEJST—will provide an overview but consider conversations with local stakeholders for additional background and existing programs.

3. Develop and begin a stakeholder engagement strategy:

This is the most important part of CBP planning. Chances are, you’ve already started this process during the selection of the project location. You’ll want to begin engagement with a range of local stakeholders. Examples include labor unions, local governments and economic alliances, community and technical colleges, Tribal governments, and community-based organizations that work with DACs or disadvantaged populations. Mitigate risks by involving the community in your overall project plan.

Pro tip: Start these conversations early! These relationships lead to stronger project plans.

Key Elements of a Successful Strategy

- A solid understanding of existing community demographics and burdens that can be linked to the goals of the grant.
- Clear benefits and activities that are specific, actionable, and measurable.
- An authentic and transparent stakeholder engagement strategy.
- A long-term strategy to strengthen stakeholder engagement, measure impacts, and continue building relationships beyond the scope of the project.