Community Benefits Investments and the Clean Energy Economy

By Emma Bonanno

Ensuring diverse communities are positioned to benefit from historic clean energy investments is central to the success of state and local economic development and social justice goals. At Karp Strategies, we believe that major clean energy projects can help grow economic opportunity for all through equitable and fair strategies for communities, sensitivity to historic inequities, and advancing a just transition in the clean energy economy.

One of the greatest opportunities to advance these goals is the creation of community benefits programs and investments. When co-designed with impacted communities and stakeholders, community benefits programs can channel funding, information, capacity-building programs, and technical assistance to organizations and individuals in a way that’s equitable and tailored to diverse needs. This helps ensure that local communities and people benefit from major investments.

What do we mean when we say community benefits?

Karp Strategies was founded on the basic principle that local stakeholders deserve full inclusion and autonomy in the decisions and investments that impact their communities—as well as equitable access to the benefits. This is especially crucial within communities that have been historically marginalized but are now experiencing new investments, including disadvantaged and environmental justice communities. Community benefits strategies are a way to ensure that these communities can partake in the benefits of clean energy investments, such as good jobs, supplier contracts, and funding for community priorities and programs.

When working with public, private, and community actors to develop holistic community benefits strategies, we keep several core principles at the forefront of our work:

• Diverse representation. The first step of any community benefits process is to develop an understanding of the full landscape of actors with a demonstrated history and connection to the community. At Karp Strategies, we engage in a comprehensive stakeholder mapping process involving desktop research on organizations and community priorities, conversations and interviews, and attendance at community events and discussions. Representatives should come from many different groups, and it’s the responsibility of the entity making the investment to conduct deep outreach to understand who should have a seat at the table. Finally, assessing community needs is critical to ensure that, once at the table, diverse stakeholders have the necessary information, capacity, and resources to participate actively.

• Upfront and ongoing inclusion. Engagement is a core component of developing successful community benefits strategies—from the initial steps as the process is being developed and working groups are formed, through negotiations on the final structure of programs and investments, to ongoing community input as these strategies are implemented. Our team has expertise in developing inclusive end-to-end engagement strategies that ensure meaningful participation in all stages.

• Understanding impacts. Conducting an impact analysis is critical to understand how the intersecting challenges—both historical and current—influence the way the impacts of major projects and investments manifest across communities. We see this as a prerequisite to meeting communities where they are and coming to conversations and negotiations from a place of empathy and understanding in order to drive successful outcomes for all parties.

• Centering equity. Environmental justice communities, disadvantaged communities, and those who have borne the burden of decades of pollution and environmental racism must be at the forefront of the transition to a clean energy economy—in terms of inclusion, impact, and benefits. As a firm, we lead with equity across all parts of our methodology, advancing work that builds capacity within organizations, communities, and economies.

• Structured implementation. We focus on the long game when developing community investment and benefits strategies, incorporating accountability benchmarks, outlining the strategic dispersal of funds, and planning for the long lifetime of projects.

What do community benefits strategies look like in action?

The strategic development of community benefits programs and investments is one of Karp Strategies’ foundational practice areas. Since her time in graduate school at MIT through her current work with offshore wind developers, economic development agencies, city governments, real estate developers, and others, Founding Principal + CEO Rebecca Karp has written and spoken extensively on the importance of intentional community benefits agreements. Over the years, the Karp Strategies team has been proud to support work on many catalytic projects that bring this intention to their investments in diverse communities.

Two recent examples of our community benefits work are highlighted below—the development of Equinor Wind US’s Offshore Wind Ecosystem Fund and the Champlain Hudson Power Express (CHPE) Green Economy Fund.

Equinor Wind US: Offshore Wind Ecosystem Fund

Private and public sector investments in emerging industries like offshore wind offer once-in-a-generation economic opportunities for communities across the region—opportunities to prioritize sustainable growth alongside racial equity and climate justice.

In 2022, Karp Strategies worked with Equinor Wind US to design and begin implementing the company’s community benefits strategy, setting it up to deliver on the $47 million in community benefits and $25 million in environmental research commitments made to New York State. The product of the first stage of this work was the launch of the $5 million Offshore Wind Ecosystem Fund, designed to make targeted investments in historically marginalized and environmental justice areas and populations in New York City.

Karp Strategies facilitated the development of the investment strategy and governance for the Fund through monthly meetings of a dedicated committee, research and advisory on fund strategy and execution, and engagement with key stakeholders and subject matter experts. This work helped define the Fund’s priority issues and ensure maximum impact for local communities, particularly in the workforce, supply chain, and economic access and growth.

Champlain Hudson Power Express (CHPE): Green Economy Fund

Ensuring diverse communities are positioned to benefit from historic clean energy investments is central to the success of equitable state and local economic development goals. Karp Strategies works to build inclusive design and recruitment processes for programs and funds, bringing advocates, agencies, and professionals together at the table and driving outcomes that center on social justice and economic mobility.

Karp Strategies, along with sub-consultant Empowering Work Advising (EWA), is working on launching and administering the $40 million Champlain Hudson Power Express (CHPE) Green Economy Fund, designed to support disadvantaged communities, low-income individuals, and transitioning fossil fuel workers in accessing and building careers in New York State’s green economy. The Green Economy Fund will finance workforce development programs and organizations providing wrap-around services that support workers in these target communities to access good jobs in the green economy.

Strategically building a diverse and inclusive RFP process to identify these programs and organizations is central to increasing access to the benefits of the green economy transition—one of the Green Economy Fund’s core priorities. Karp Strategies employs a data-driven approach and leverages our expansive knowledge of New York stakeholders, state and local workforce development priorities, grant management, and the clean energy sector to support recruitment and broaden the pool of applicants. Applications for the first round of funding closed at the end of April, with additional rounds planned for the next several years.

Let us know how we can support you!

Karp Strategies' community benefits practice draws on our expertise in community economic development, large-scale renewable energy projects, and our dedication to a just transition in the energy economy. Our team has extensive experience across engagement, impact analysis, and strategy design, which we bring together to help our clients develop successful and equitable community benefits strategies that center the needs of diverse communities. Let us know how we can support your work!

Coffee with Annie White, Director of Real Estate + Economic Development

Annie in her office. Artwork by Noah MacMillan.

We grabbed coffee with Annie White to talk about her experiences in promoting equity, economic development, and her Midwestern pride! We also got some great stories about some of Annie’s favorite odd jobs over the years.

Annie is the Director of Real Estate and Economic Development at Karp Strategies and joined us after six years at the NYC Department of City Planning. Annie is a big advocate of the importance of recognizing inequitable systems at play in our built environment and working towards creating more equitable systems in their place, as well as engaging the community in this process.

Why did you join Karp Strategies?

I was incredibly excited to join Karp Strategies because I was looking forward to being part of a small but growing and active team. I loved the idea that there was enough space for me to take on the work I wanted to take on while being supported by the leadership team. Also, after working in NYC government, I wanted to have the opportunity to work more on a regional basis and learn more about the offshore wind industry in general. As Director, I have gotten to engage in more real estate planning work (such as zoning analyses, market analyses, land use studies, etc.) and have been able to work on community engagement to ensure the end result of our projects builds equitable wealth for our city and the communities we are serving.

What do you see as the major intersection between architecture and urban planning? What inspired your switch to urban planning primarily?

When I started my career, I was at a small architectural design firm in St. Louis, MO. St. Louis is a city that has seen the full rise and fall of urbanization and population decline. While at the firm, we did a lot of historical rehabilitation and housing work. Being there helped me to realize that I was interested not so much in what we were designing but in the systems in place that allowed all these neighborhoods to see this amount of disinvestment and extreme racial inequality that was present in St. Louis. I went back to planning school to understand these systems more and ended up getting really interested in real estate and economic development. One fun thing to note—I have a lot of Midwestern pride. While in planning school, I was one of the few people who refused to use New York City or Boston case studies—I always would investigate ones from the Midwest.

What do you see as an important policy step that needs to be taken that will make urban planning and design more equitable?

I think that the city needs to be better about equitably distributing resources (both physical as well as programmatic) across the five boroughs. When working in planning, you continually see neighborhoods that take the burden of housing growth and resiliency that should be better and more equitably distributed. We are still living in a deeply segregated and inequitable city. When thinking about the bigger conversations we’re having surrounding housing equality, the resources and benefits that come with having enough affordable mixed-income housing are essential for fair and equitable living.

What advice would you give to an urban planner whose project isn’t the most popular with the public?

I think the most important thing is trying to find some common ground with the public, even when facing extreme opposition. I have learned that there will always be very vocal opposition to any planning work you’re doing, but oftentimes, that is just a very vocal minority. When I worked on the Soho and Noho rezoning projects, we realized that we needed to have large town hall settings but also smaller conversations to meet the locals where they were at. There was also a lot of misinformation; once we could sit people down and discuss the impacts the project would have on their housing situation, we made more headway. Anyone living in unstable housing has fears around rezoning, but once you talk to them one on one, you can find common ground, and people were able to start seeing some of the benefits of the rezoning.

What has been your favorite odd job you’ve worked and why?

I have always worked in the service industry and really enjoyed my time there. But I did end up being DJ for a few weddings in grad school, and that was a really cool experience. Hit me up if you ever need some fabulous wedding playlists—tried and tested!

Tell me about a favorite hobby of yours and how you got into it.

When I was growing up, I played volleyball a lot. I recently got back into this hobby with the volleyball subculture at Domino Park. I started playing in Domino Park during 2020, and it was a fun way to enjoy the outdoors, get a great view of the city, and enjoy the nice weather while we have it.

Fast Facts:

Last TV show I binge-watched: Succession

Restaurant (delivery) I’d recommend to close friends: Xi’an Famous Foods

Book that changed me: Anything by Elena Ferrante

Best concert I’ve ever experienced: Beyonce

Movie I’d pay to see again and again: 10 Things I Hate About You

My Heroes are: A personal one is my sister—she is in med school right now and is an absolute rockstar. Another one is Anthony Bourdain—I was obsessed with him and how he used food to explore and understand different cultures.

Unlocking the Power of Economic Impact Analysis at Karp Strategies

What we do

At Karp Strategies, we understand that economic development is about people, communities, and creating sustainable growth. Our clients come to us with questions such as: What is the contribution of a certain business or an industry to a region’s economy? What are the characteristics of the jobs created or supported in different sectors as a result of an investment or a policy change? What are the potential supply chain and value chain dynamics of a certain facility? How does an increase in resident population or workforce size impact household spending in a region? These are complex challenges that require a nuanced understanding of the local economy and a clear-eyed view of the trade-offs and risks involved.

That's where our Economic Impact Assessment services come in. Using input-output modeling (I-O) tools like IMPLAN, Lightcast, RIMS II, and JEDI, we help our clients map out the ripple effects of their investments and initiatives across sectors, industries, and communities. Our goal is not just to measure the economic impacts but to help our clients design strategies that align with their values and priorities. We choose the most appropriate tool, or combination of tools, for our client’s needs based on their industry and reporting requirements. Then, work closely with them to evaluate the potential benefits and costs of different projects or initiatives, estimate their return on investment, and identify potential risks and trade-offs.

We also know that hard data only takes you so far—our assessments always include thorough quantitative and qualitative methodologies. For example, we might use IMPLAN to execute our quantitative analysis, while our qualitative study relies on a review of stakeholder interviews and other forms of desktop research. In alignment with our core tenets as a firm, we examine every project from a holistic perspective incorporating data, people, and places. Our rigorous and transparent analysis enables our clients to engage with stakeholders and partners, communicate their value proposition, and ultimately, build a strong case for their economic development strategies.

But we don't stop there. Our approach to economic impact assessment is grounded in our commitment to grassroots economic empowerment. We believe that data and analysis are only valuable if they can be translated into meaningful action—and that communities should be central to and involved in that action. That's why we work with our clients to identify ways to involve stakeholders in the decision-making process and to ensure that the benefits of economic growth are shared widely and equitably. Our economic impact assessments are an essential component of building broader community, economic, and workforce strategy and planning that help our clients build more resilient, sustainable, and inclusive economies.

Economic Impact Assessments in Action:

Below are some examples of the economic impact assessments we’ve conducted for clients ranging from private-sector developers specializing in large-scale mixed-use projects to offshore wind developers and manufacturers seeking to embed a new industry into an existing ecosystem. Karp Strategies’ analyses inform our clients’ strategic decision-making processes—grounded in data and informed by conversations with those most affected by the project at hand.

Tackling the economic impacts of various developments: affordable and market-rate housing, commercial retail space, and/or outdoor public amenities. Developers in New York City engage Karp Strategies to execute economic impact assessments to estimate the direct, indirect, and induced impacts a new development will have on jobs, labor income, and tax revenues during the construction process, as well as the project’s longer-term operations phase. This has allowed them to quantify and communicate the positive economic effects of their developments to decision-makers, internal stakeholders, and the broader community. By presenting a comprehensive analysis of the potential benefits and costs of a project, Karp Strategies helps developers build a strong case for their investments and address concerns from community members and elected officials.

Leveraging workforce and fiscal impact analyses to understand New York City life science hiring trends and industry gaps. Karp Strategies was hired to conduct an analysis of the life science sector in New York City and recommend ways to optimize workforce development and community investment. Through a series of mixed methods analysis that included economic and fiscal impacts assessment, expert interviews, and desktop research, we quantified the contributions of the life science industry to New York City’s economy and mapped the key characteristics of the current life science workforce. Karp Strategies then compiled a comprehensive key findings and recommendations report that identified potential opportunities for advancing equitable access to future life science jobs and strategies for filling existing industry gaps through future investments. Click here to learn more about this project.

Planning for the growth of offshore wind—a nascent industry. Karp Strategies is dedicated to the development of the clean energy industry as a key means to create thriving economies and a sustainable future. That involves helping developers and original equipment manufacturers (OEMs) craft informed and impactful workforce development and supply chain strategies. As part of several teams vying for NYSERDA’s third solicitation, Karp Strategies developed projections for the economic and workforce development impacts of the proposed projects—including estimates for the number of projected jobs, Minority- and/or Women-owned businesses who may participate, and jobs accessible to those residing in designated disadvantaged communities. Our quantitative assessments, coupled with our additional economic and stakeholder research and strategy, directly informed our clients’ New York Jobs and Workforce Plans and OEMs’ Supply Chain Investment Plan(s). Click here to learn more about our offshore wind practice.

Karp Strategies approaches each unique context to deliver content expertise, produce a strong and focused product, and employ stellar project management throughout our work to unlock the full power of economic impact assessments. If your investment, project, or advocacy requires a formalized analysis of overall economic impact, please do reach out to us at info@karpstrategies.com and tell us more.