Wind Power and Economic Development Real Examples from the Pacific Northwest

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Wind Power and Economic DevelopmentReal Examples
from the Pacific Northwest
Images Puget Sound Energy

• Jesse Jenkins Troy Gagliano
• Jesse_at_RNP.org Troy_at_RNP.org
• Renewable Northwest Project
• www.RNP.org
• 503-223-4544

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Introduction

• About RNP
• Broad coalition of public-interest
  organizations and energy companies.
• Removing barriers to deployment of renewable
  energy, creating incentives and building markets.
• Working to promote smart public policies,
  responsible projects and powerful individual
  choices.
• About me
• Jesse Jenkins
• Research and Policy Associate
• Joined RNP in July 2006

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gt1,500 MW 375,000 homes
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Wind and Economic Development

• Wind power development in the Pacific Northwest
  is bringing significant economic development
  benefits to communities across the region.
• RNP Study
• 7 Large NW Wind Projects, between October 2005
  and October 2006.
• 954 MW of clean, renewable energy (2/3rds of NW
  installed wind)

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Wind and Economic Development

• Seven projects nearly 1,000 MW of clean,
  renewable energy
• Real economic development benefits each step of
  the way
• Development stage
• Community spending
• Development jobs
• Operation phase
• Property tax revenues
• Landowner payments
• OM jobs

Table Combined Economic Development Impacts of
Seven Northwest Wind Power Projects
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Development Phase

• Development phase brings hundreds of jobs and
  infuses millions of dollars of cash into local
  economies
• Seven projects supported 1,200-1,300
  construction jobs (underestimate)

• Construction Phase
• Longshoreman and port workers
• Truck drivers
• Civil and electrical engineering firms
• Gravel, concrete, rebar, fuel and other
• materials suppliers
• Heavy equipment rental companies
• Road construction, concrete laying,
• surveying, excavating and numerous
• other construction contractors

• Pre-construction Phase
• Legal consulting firms
• Design and engineering firms
• Environmental and other
• consulting firms

Image Puget Sound Energy
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Development Phase

• Example Wild Horse Wind Project - 229 MW near
  Ellensburg Washington
• Employed 250 construction workers, most from OR
  and WA, 1/3rd from local rural Central
  Washington counties.
• Hired local firms - surveying, road crews,
  gravel, concrete laying, rebar, etc.
• Spent over 8.4 million in the local community on
  equipment rental, salaries for local hires and
  local purchases.

Images Puget Sound Energy
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Ripple Effect

• New income spent and re-spent in community.
  Ripples through economy.
• Example During construction of Klondike I and II
  wind farms in Sherman County, local cafes,
  markets, motels, RV parks and hardware stores,
  experienced increased activity during
  construction and steady flow during operations.

Clark Street, Wasco, OR
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Operation Phase Landowner Benefits

• 1/2 acre for wind 2,000-7,000 (annual
  royalties per turbine)
• Newer projects offering up to 14k/turbine/year!
• Same 1/2 acre for wheat 75 (25 bushels
  _at_ 3 each)
• Seven projects paying 2 million to 3 million
  per year

• Wind turbines bring benefits I hadnt expected.
  The roads allow easier access to my fields, and
  the turbines make money during the winter when I
  cant work my land. We want turbines on every
  acre.
• John Hilderbrand, wheat and wind farmer, Sherman
  County, OR

Images PPM Energy
The Hilderbrands, standing in front of their
wheat and wind crops
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Operation PhaseProperty Tax Benefits

• Seven projects paying 5.8 million to 6.8
  million per year in local property taxes.
• Example Sherman County
• Adds 10 to entire co. tax base (250,000 for 20
  years)
• Supports schools, other essential services
• Klondike II increase general fund another 20 or
  750,000 annually

Figure Klondike I (24 MW) Total 2002-2003
Property Tax 321,205
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Operation PhaseProperty Tax Benefits

• Elk Horn project, Union County - 105 MW
  (under construction now)
• Will bring an estimated 10 million in property
  tax revenues over 20 years.
• Helping make up for lost timber receipts (Union
  County an historic timber county)

• The Elk Horn Wind Project will create a new
  infusion of revenue to our county that will be
  crucial to the continuation of critical county
  services.
• John Lamoreau, former Union County Commissioner

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Operation PhaseOM Jobs

• Create permanent family wage
• jobs for Operations and
• Maintenance (OM)
• 7 Projects created nearly 80 OM jobs
• Usually local hires, good
• family-wage jobs
• Example Klondike I OM crew
• 3 full-time technicians
• 1 part-time administrator
• All 4 live in Sherman or
• surrounding counties
• Klondike I and II created 9 OM Jobs
• 9 jobs in Sherman County (pop. 1,900) equivalent
  to
• 3,100 jobs in Multnomah County (pop.
  665,810)

GE Technicians, Jose Guzman, Seth Stanfield and
Flemming Pedersen stand in front of the Klondike
I Wind Project.
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Summary of Results
Table Combined Economic Development Impacts of
Seven Northwest Wind Power Projects
Table Economic Development Impacts Per Megawatt
of Installed Wind Power Capacity
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Conclusions

• Renewable Energy is bringing major economic
  development to Pacific Northwest and across
  United States.
• Focus here on wind but also
• Biomass in forest communities
• Geothermal throughout much of the West
• Solar thermal in Desert Southwest
• solar PV across the country
• Soon wave and tidal power off Pacific coast
• Diversifying rural economies, historically
  single-engine (and as a rule in decline).
• Supporting manufacturing jobs when US is
  hemorrhaging them.
• New investment, jobs, income and cash.
• Developing clean, homegrown renewable resources
  makes for a strong economy!

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Contact

• Jesse Jenkins
• Jesse_at_RNP.org
• 503-223-4544
• Renewable Northwest Project
• www.RNP.org