Look years down the road when sketching benefits agreements

Energy demand is rapidly increasing nationwide as a variety of industries embrace electrification and as technology companies build energy-intensive data centers. 

The most rapidly growing types of energy generation and storage make use of open land, and so county leaders play a crucial role promoting judicious energy development and advocating for their constituents’ priorities. This article is meant to help county leaders evaluate their communities’ needs, set guidelines for development and understand the tools that outline benefits for hosting energy projects.

Set priorities

Counties may find it challenging to determine their top priorities in negotiating benefits from an energy or data center project. Preparing in advance by engaging the community in productive, open conversations about local needs can help set priorities and find the best way to address them when negotiating with developers.

1. Ascertain the community’s goals

As counties use various community engagement strategies to identify agreed-upon community needs and potential project benefits, consider using the following questions to better understand the perspectives of local stakeholders:

What do we want our community to look like in the future? What areas of our community need support or improvement to reach that vision? 

What is our community’s biggest challenge? What is the best way to address that challenge?

What impact do we want to have over the next X years? What is the best way to support, improve or create a positive impact for our community?

Which priorities in our county’s strategic plan need financial support? How much would it take, and how long might that commitment need to last?

2. Research county-developer agreements and evaluate case studies

There are many examples of agreements and agreement frameworks that have been successful in other counties. NACo and other organizations highlight cases where communities successfully negotiated lasting benefits for their communities while maintaining good relationships with project developers and operators. Be sure to identify a community that has similar policy frameworks as yours. 

3. Peer-to-peer learning

County officials regularly cite peer interactions as the most effective way they can learn how to handle new challenges. Use your networks by seeking out organized peer learning programs or reach out to trusted county leaders to share your experiences.

Set parameters

The level of county authority in energy project siting varies across the United States. Before establishing zoning ordinances and benefits agreements, county leaders need to understand what aspects of a new development they can regulate and to what degree.

Specific parameters and zoning issues that counties will likely consider include: Setbacks, energy use, water use, noise levels, architectural design/appearance, traffic/roads, light, shadows, air quality, land use and decommissioning.

Set terms: Tools and agreements

Communities across the country have negotiated benefits using various types of agreements. Although these agreements go by many names, they all have some degree of overlap. Legally supported agreement types differ by state, so determine which are available in your county by contacting your state representative or state association of counties first.

County officials should evaluate their priorities and determine how flexible their requirements are prior to discussions with developers. Ideally, interactions between local officials and developers are positive negotiations to find mutual benefits, not battles for dominance. Some communities’ demands may be firm, yet flexibility on other benefits is more likely to yield progress.

No matter which agreements are at a county’s disposal and what authority a county has on siting energy projects, certain leadership priorities consistently produce durable, positive outcomes for constituents. These “dos and don’ts” can serve as a general guide for county leaders when they consider energy development in their communities.