Community Benefits
Construction of a new stadium or solar farm can spark both alarm and promise for local residents, and for good reasons. Often, communities are sidelined in decision making about these projects, and the benefits of such large-scale developments are not always evenly distributed. Historically, when these opportunities arrive, local officials have held public hearings where residents could voice concerns. However, this type of engagement has its drawbacks. It tends to favor vocal residents with the time and resources to attend. Moreover, research shows residents who attend these public hearings are disproportionately project opponents, rather than those who are pushing for more energy infrastructure or housing. And, ultimately, there is no guarantee that local electeds will take community feedback into consideration.Community Benefit Agreements (CBA) have emerged as one way to increase local control over development decisions and ensure that economic and other gains from new infrastructure are more widely shared. What is a CBA? A Community Benefit Agreement is a legally binding contract between a developer and local governments or community groups such as labor unions, neighborhood associations, or environmental advocates. In exchange for specific, tangible benefits, such as job training programs, affordable housing units, local hiring guarantees, parks, reduced electricity rates, or direct financial payments, local organizations agree to support a proposed project – or at least not oppose it. In this way, CBAs might be able to help speed up approval processes and accelerate development by navigating potential community opposition. CBAs to Support Clean Energy Development As California moves toward its goal of 100% renewable energy by 2045, communities are beginning to see many more wind and solar infrastructure projects — particularly those in the inland and rural counties of the state. As of November 2025, there are 282 planned utility-scale solar projects in California. Their total planned capacity is 59,721 megawatts (MW). Historically, Community Benefits Agreements have resulted from extensive advocacy and organizing by local community members. However, instead of pushing communities to self-organize for these benefits, California has begun to require clean energy developers to enter into legally-binding agreements with local community organizations in order to benefit from streamlined permitting at the state level. CBAs for renewable energy are becoming increasingly prominent in policy and some jurisdictions both in California and other states have institutionalized community benefits: Riverside County’s Policy B-29 requires large solar projects to pay approximately $150 per acre. Imperial County’s Public Benefit Program collects fees from solar projects to issue grants for infrastructure improvements and job creation. California’s AB 205 now requires developers seeking state-level permits for large solar and wind facilities to execute a CBA Michigan’s recent legislation mandates that developers enter Host Community Agreements with minimum payments of $2,000 per megawatt. New York established a Host Community Benefits program with annual fees per megawatt issued as electric bill credits to residents of municipalities hosting renewable energy projects Read the Report: Rethinking Community Benefits: Industry-Specific Insights for a Transforming California In order to help community groups who want to negotiate benefits agreements with developers, our team at the Possibility Lab – in partnership with CA FWD – built an Energy Project Benefits Agreement Database to identify common characteristics of successful agreements. Explore our Energy Project Benefits Agreement Database The Promise and Challenges of CBAs The promise of CBAs is that they give communities direct power to negotiate for their needs and preferences. However, it can be unclear who actually represents “the community.” Because CBAs are often negotiated by select community groups, they can lack democratic accountability. And just as the residents attending a public hearing may not be representative of the demographics of a community, with varying and unequal access to economic and political capital, the same could be true of the community groups who participate in negotiating CBAs. As a result, some critics view CBAs as essentially allowing developers to “buy off” opposition in order to streamline approvals. The importance of timing in these agreements doesn’t improve optics: offered too early, benefits might feel like bribes; too late, they may seem like unjust compensation for negative impacts. In the end, CBAs are private contracts and the details of many agreements stay hidden. As a result, despite many examples of CBAs in and outside California, surprisingly little is known about their actual structure, benefits, and outcomes. Many important questions remain unanswered, including whether CBAs speed up or slow down development. Which communities successfully negotiate CBAs, and which don’t? What happens when negotiations are unsuccessful? Who follows through to ensure commitments are fulfilled? CBAs are a promising vehicle to address the potential tensions between the need to quickly build more infrastructure and the desire to engage communities in decision-making. Nonetheless, more research is needed to understand their effectiveness in delivering real benefits to communities while enabling progress on housing, energy, and other new development. To learn more, visit the UC Berkeley Possibility Lab’s People-Centered Policymaking site
Across California, communities and developers are coming to the negotiating table in an effort to distribute prosperity. Community Benefits Agreements can help.

Construction of a new stadium or solar farm can spark both alarm and promise for local residents, and for good reasons. Often, communities are sidelined in decision making about these projects, and the benefits of such large-scale developments are not always evenly distributed.
Historically, when these opportunities arrive, local officials have held public hearings where residents could voice concerns. However, this type of engagement has its drawbacks. It tends to favor vocal residents with the time and resources to attend. Moreover, research shows residents who attend these public hearings are disproportionately project opponents, rather than those who are pushing for more energy infrastructure or housing. And, ultimately, there is no guarantee that local electeds will take community feedback into consideration.
Community Benefit Agreements (CBA) have emerged as one way to increase local control over development decisions and ensure that economic and other gains from new infrastructure are more widely shared.
What is a CBA?
A Community Benefit Agreement is a legally binding contract between a developer and local governments or community groups such as labor unions, neighborhood associations, or environmental advocates.
In exchange for specific, tangible benefits, such as job training programs, affordable housing units, local hiring guarantees, parks, reduced electricity rates, or direct financial payments, local organizations agree to support a proposed project – or at least not oppose it. In this way, CBAs might be able to help speed up approval processes and accelerate development by navigating potential community opposition.
CBAs to Support Clean Energy Development
As California moves toward its goal of 100% renewable energy by 2045, communities are beginning to see many more wind and solar infrastructure projects — particularly those in the inland and rural counties of the state. As of November 2025, there are 282 planned utility-scale solar projects in California. Their total planned capacity is 59,721 megawatts (MW).
Historically, Community Benefits Agreements have resulted from extensive advocacy and organizing by local community members. However, instead of pushing communities to self-organize for these benefits, California has begun to require clean energy developers to enter into legally-binding agreements with local community organizations in order to benefit from streamlined permitting at the state level.
CBAs for renewable energy are becoming increasingly prominent in policy and some jurisdictions both in California and other states have institutionalized community benefits:
- Riverside County’s Policy B-29 requires large solar projects to pay approximately $150 per acre.
- Imperial County’s Public Benefit Program collects fees from solar projects to issue grants for infrastructure improvements and job creation.
- California’s AB 205 now requires developers seeking state-level permits for large solar and wind facilities to execute a CBA
- Michigan’s recent legislation mandates that developers enter Host Community Agreements with minimum payments of $2,000 per megawatt.
- New York established a Host Community Benefits program with annual fees per megawatt issued as electric bill credits to residents of municipalities hosting renewable energy projects
Read the Report: Rethinking Community Benefits: Industry-Specific Insights for a Transforming California
In order to help community groups who want to negotiate benefits agreements with developers, our team at the Possibility Lab – in partnership with CA FWD – built an Energy Project Benefits Agreement Database to identify common characteristics of successful agreements.
Explore our Energy Project Benefits Agreement Database
The Promise and Challenges of CBAs
The promise of CBAs is that they give communities direct power to negotiate for their needs and preferences. However, it can be unclear who actually represents “the community.” Because CBAs are often negotiated by select community groups, they can lack democratic accountability. And just as the residents attending a public hearing may not be representative of the demographics of a community, with varying and unequal access to economic and political capital, the same could be true of the community groups who participate in negotiating CBAs.
As a result, some critics view CBAs as essentially allowing developers to “buy off” opposition in order to streamline approvals. The importance of timing in these agreements doesn’t improve optics: offered too early, benefits might feel like bribes; too late, they may seem like unjust compensation for negative impacts.
In the end, CBAs are private contracts and the details of many agreements stay hidden. As a result, despite many examples of CBAs in and outside California, surprisingly little is known about their actual structure, benefits, and outcomes. Many important questions remain unanswered, including whether CBAs speed up or slow down development. Which communities successfully negotiate CBAs, and which don’t? What happens when negotiations are unsuccessful? Who follows through to ensure commitments are fulfilled?
CBAs are a promising vehicle to address the potential tensions between the need to quickly build more infrastructure and the desire to engage communities in decision-making. Nonetheless, more research is needed to understand their effectiveness in delivering real benefits to communities while enabling progress on housing, energy, and other new development.
To learn more, visit the UC Berkeley Possibility Lab’s People-Centered Policymaking site
