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History of Community Benefits
“Community Benefits” is an umbrella term used to describe the benefits and potential risks of any new technology or project and includes the following:
Additional Resources
The idea of understanding the potential benefits of a project, as well as the potential risks (or disbenefits), is not new. What is new, however, is that as of 2021, the U.S. government passed an Executive Order 14008, “Tackling the Climate Crisis at Home and Abroad.” This new rule requires that projects receiving any federal funding include explicit consideration for how project benefits will be directly guided to communities, and any potential risks or disbenefits will be mitigated or prevented outright. This requirement applies to both the project development as well as implementation.
In April 2024, another Executive Order (14096) was signed, called “Revitalizing Our Nation’s Commitment to Environmental Justice for All,” which introduced additional requirements that 40% of all project benefits go to communities that are designated as disadvantaged communities (or DACs). Many different metrics can be used to understand which communities are considered DACs, including (but not limited to):
- Places where communities have historically relied on fossil fuels and related industries for jobs and economic sustainability (called historic fossil fuel communities).
- Places where educational attainment is lower than the national average.
- Places where income levels fall, on average, below national poverty standards.
Read more about Community Benefits Plans from the U.S. Department of Energy: About Community Benefits Plans | Department of Energy