Community Benefit Agreements

Offshore wind is an additional renewable power source along with solar and onshore wind to help California make a transition from fossil fuel sources to a zero greenhouse gas emission economy. Offshore wind will play a particularly critical role for generation of electricity in the evening when there is no sun to generate solar and on-shore wind speeds drop. California currently depends on natural gas for about 1/3^rd of its energy generation.  While natural gas has less air pollutants than other fossil fuels per energy unit, it is still a major producer of methane gas and carbon dioxides (35% of total U.S. energy-related carbon dioxide emissions are from natural gas). Continued natural gas production also has potential environmental impacts on communities including land use impacts, air quality impacts (from engines to run equipment) and potential water quality impacts. Because water from natural gas production is contaminated, it must be properly handled, stored, and treated before being released back into the environment. This requires additional energy. [1]

California communities are expected to see an increase in jobs and economic opportunities. These jobs and economic communities will include not just jobs in the communities adjacent to the wind energy areas but also jobs across the State particularly in supply chain logistics and in the various ports supporting the industry including (manufacturing and fabrication, staging and integration, and operation and maintenance). 

Because of the large numbers of people and places involved in offshore wind development, there are many communities that could experience impacts as a result of offshore wind development. Tribal communities may experience impacts if wind development takes place in areas of cultural significance including sacred sites. Concerns have been expressed in the context of an energy development project that a large influx of outsiders into a community can impact security of communities particularly tribal communities. Tribal communities are concerned that carbon-free energy be developed responsibility and that they have the ability to be participate in the vision of what this energy development will look like. 

Communities in general may be impacted from cable landings that might be located in high-traffic locations such as recreational areas. If there is a large influx of outside workers to support offshore wind development such as construction of port infrastructure or wind assemblies, there may be new local pressures on housing markets, transport networks, schools, or other community sectors that were not part of original municipal planning.   

Fishing communities, both commercial and recreational, could be impacted by the offshore wind development. Both of these communities may be disrupted by port construction and  offshore wind deployment.  Likewise existing or future aquaculture operations may be impacted by dredging and vessel traffic. Concerns have been raised about coastal erosion and the introduction of invasive species into coastal waters . 

Residents living adjacent to port areas may be impacted by port development and operation particularly if port development and operations is accompanied by additional traffic. Communities may be impacted further by air, water, noise, and light pollution.  

Recognizing that some communities may experience more impacts than other communities, agency leases may require that wind developers offer community benefit agreements either in the form of “general community” benefit agreements or “lease area use” community benefit agreements. “Lease area use” agreements are intended for groups including commercial fishing operations whose use of a geographic Lease Area space or resource found in the Lease Area might be impacted by wind operations. (2) All California wind developers agreed to “lease area use” community benefit agreements. Not all of the developers in California agreed to provide general community benefit agreements. 

RWE Offshore Wind (Humboldt)- 

1. Lease Area Use- $6,065,385
2. General $6,065,385

California North Floating (Humboldt)- 

1. Lease Area Use- $6,684,615
2. General $6,684,615

Equinor Wind (Morro Bay)- 

1. Lease Area Use- $5,000,000
2. General $5,000,000

Golden State Wind (Morro Bay)- 

1. Lease Area Use- $6,012,000
2. General $0

Invenergy California Offshore (Morro Bay)- 

1. Lease Area Use- $5,558,462
2. General $5,588,462

General community benefit agreements must specify how an impacted community is likely to be affected by the potential impacts on marine, coastal, and/or human environment from activities resulting from lease development. The agreements include specifics plans about how to mitigate potential impacts and describe specific monetary payments, materials, or other benefits provided to the impacted community. 

 These benefits can be provided in the form of community benefit fund, a direct payment to a local organization, or some other mutually agreed upon mechanism. 

In connection with the floating offshore wind project off the coast of the  Vandenberg Space Base in Santa Barbara County, the wind developer Floventis signed a community benefit agreement with the Santa Ynez Band of the Chumash recognizing the Chumash people’s connection to both the land and committing the developer to properly consult with the tribe during state and federal environmental impact review. The agreement provided additional support for the tribe’s study of traditional cultural landscapes and funding to establish a tribal-run research institute to help the community cultivate oceanographic expertise and build management  expertise for the proposed Chumash Heritage National Marine Sanctuary. (3)

A variety of agreements have been negotiated on the East Coast for fixed offshore wind projects. In Rhode Island, the town of Portsmouth agreed in 2024 to a Host Community Agreement with SouthCoast wind providing a total payment of $23,224,673 over the life of the project for an onshore export cable landing for a 2.4 GW offshore wind project to be constructed in two 1.2 GW phases. In addition to pre-construction payments and annual payments, the agreement provides for $3.25 million dollars to be paid for a Portsmouth Resilience Fund to help the town fund projects to address climate change impacts or other beneficial projects.  (4)

Off the coast of New York, the town of East Hampton entered an agreement for impacts from a 132-MW offshore wind facility that included a conditional transmission easement and a land lease interest to construct, operate, maintain, repair, and remove portions of a transmission cable within a portion of a city beach. The benefits included annual payments of $700,000 for the first 25 years with additional 2% payment after 25 years. The developer also agreed to fund a fisheries liaison, local economic development (operation and maintenance support facility in Montauk), and a community trust fund of $5.5 million. (5)

The City of New London and North East Offshore LLC agreed as part of Harbor Development Agreement to an upfront payments of $750,000, annual payments of $750,000 for the next seven years, and additional payments for continued use of the pier.  (6)

Wind developers will be laying cables. Previous agreements have been entered into between San Luis Obispo County Commercial Fishermen and cable companies to provide a combination of upfront payments, annual payments, grants for mitigation programs, and funds for environmental monitoring. (7) 

California wind developers agreed to provide workforce training and/or supply chain development funds for  development of a U.S. floating offshore wind industry. Learn more about California offshore wind leases here.

(1) Natural Gas Explained: Natural Gas and the Environment, https://www.eia.gov/energyexplained/natural-gas/natural-gas-and-the-environment.php

(2) Each of the BOEM standard leases includes sections on these community benefit agreements with details about when agreements must be concluded and what is expected from the developers in order to ensure that they continue to qualify for the bidding credit that they have received connected to the agreements. 

(3) Abigal, Sawyer. “Tribe, Wind Developer Plan 60-MW Offshore Wind Farm Near Vandenberg.” California Energy Markets. News Data, 17 Nov 2023. https://www.newsdata.com/california_energy_markets/regional_roundup/tribe-wind-developer-plan-60-mw-offshore-wind-farm-near-vandenberg/article_8cb6f730-8565-11ee-8ea9-df485ccfb8af.html.

(4) Host Community Agreement between Town of Portsmouth, Rhode Island and SouthCoast Wind Energy, (January 16, 2024) https://climate.law.columbia.edu/sites/default/files/content/CBAs/Portsmouth%20-%20SouthCoast%20HCA.pdf

(5) Host Community Agreement (March 9, 2021) between South Fork Wind, Town of East Hampton, New York, and Trustees of the Town of East Hampton, https://climate.law.columbia.edu/sites/default/files/content/CBAs/05.%20East%20Hampton%20Executed.pdf

(6) Host Community Agreement between North East Offshore, LLC and City of New London https://climate.law.columbia.edu/sites/default/files/content/CBAs/03.%20New%20London.pdf

(7) Central California Joint Cable/Fisheries Liaison Committee, Agreement between Cable Companies and Fishermen, (Original January 30, 2002) available at https://climate.law.columbia.edu/sites/default/files/content/CBAs/Cable%20Companies%20Agreement.pdf