Large industrial projects involve complex stakeholder engagements and thorough evaluation of technical, financial, environmental, and social aspects. The regional H2Hub applicants that have been selected are now in the process of award negotiation. Although the hubs moving forward in the process are not expected to receive any funding until these negotiations are completed, they can receive up to $20 million for the detailed planning phase (i.e., Phase 1). The initial phase should take 12 to 18 months, during which broader community engagement should begin in earnest. By the time Phase 1 is complete, applicants should have laid the groundwork to eventually negotiate and sign some type of agreement with the local community.
From the lessons presented in this brief, both communities and developers can form processes for better engagement, not only for the regional hubs but also for other large industrial developments. An understanding of benefits that are typically requested by communities will be helpful to companies hoping to take advantage of funding through current and future DOE FOAs, especially if they can be tied to any of the eight Justice40 policy priorities (see Exhibit 5). These benefits typically fall into one of two categories: (1) community assistance funding above and beyond the project scope, and (2) requirements within the project scope to ensure benefits flow to specific groups (see Exhibit 13).
Requirements for CBPs and CBAs offer a gold standard for all developers to adopt. Looking forward, all key stakeholders will have a part to play as we continue to develop the technologies and industries to move to a clean energy economy.
Proactive communication with EJ and other community groups early in the project development process will help industry understand what production and use cases are more acceptable and adapt designs to lower the risk of project delays or cancellation. Industry should also consider maintaining transparency during scoping studies and clarifying how resources will be allocated. Early engagement with academia and labor representatives will help ensure the workforce development pipeline can train the needed number of highly skilled workers and that these workers can be attracted and retained by high-quality jobs.
OCED’s framework for community benefits provides guidance on how to approach successful community engagement in the United States. This and other relevant resources will be critical as clean energy and industrial projects grow to meet our climate goals. As federally funded projects simultaneously attract enthusiastic support and concerned opposition from various parties, maintaining accountability on stated CBP objectives, metrics, and CBA clauses will ultimately be vital to the success of these projects to show true climate and economic benefits for the long term.
As these projects mature, meaningful two-way community engagement can lead to mutually beneficial relationships between project developers and local communities and should be adopted as the standard operating procedure for all projects, not just for those hoping to receive federal funding.
Centering equity and community engagement in project design will be a critical lever for delivering a just clean energy transition in the United States.
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Copyrights and Citation
Hadia Sheerazi, Gareth Westler, Chathurika Gamage, Moana McClellan, and Patience Bukirwa, Delivering Equitable and Meaningful Community Benefits via Clean Hydrogen Hubs: Case studies and best practices from advising developers of the DOE’s $7 billion Regional Clean H2Hubs program, plus lessons for future clean energy projects, RMI, January 28, 2024, https://rmi.org/delivering-equitable-and-meaningful-community-benefits-via-clean-hydrogen-hubs.
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