Follow the money

$45 Million –That is the amount that AES Mt. View Solar has been telling the community their hundred-acre solar farm will provide in “economic output” during their public consultation meetings. But such a large number surely deserves a breakdown explanation. 

Exactly how does that generate into guaranteed local benefits in the 96792 zip code? When AES says their project will generate approximately “will contribute to economic opportunity into the community of approximately $45million,” who exactly does the community go to hold AES to it? Those are just a few of the questions that Waiʻanae residents have asked in AES’ public meetings.  numbers get thrown around a lot when developers try to pitch their projects to communities. But there are no guarantees, assurances, or mechanisms for accountability. 

One way for communities to get a guarantee from developers is through Community benefits agreement (CBA); a contract between a community, or coalition of community groups, and a developer in which the developer agrees to provide a slate of economic benefits in exchange for their promise not to oppose the project. 

The CBA movement has its roots in the early 2000s with the efforts of community coalitions to secure living wages, local hiring, and green building requirements for low-income communities that traditionally have been left out of the development planning process for their own neighborhoods. Locally, West Maui Conservation Association reached an unprecedented agreement with Canadian based developer, Innergex for their Kahana Solar Project. The deal included $55,000 for 25 years in annual community benefits to organizations and education programs. Innergex also committed to pay 80% of its workers the prevailing wage, prioritize hiring West Maui workers to create and form a strict decommissioning plan.

Most large-scale energy development projects involve a lengthy and complex negotiation between public entities and a developer. Often, these projects are subsidized by taxpayer dollars and require land-use approvals which could provide leverage for community groups to negotiate for community benefits. However, a benefits package like West Maui’s could be standardized with specific guidelines in Hawaiian Electric’s  Request for Proposals rather than vague suggestions to developers on consultation. Until then, communities will keep fighting for their right to advocate on their behalf and receive direct benefits from a project that impacts their community well-being. 

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