Renewable Energy and Economic Potential in Montana
Release Date:
10/28/2009
Contact(s):
John Crabtree, Center for Rural Affairs, johnc@cfra.org, Phone: (402) 687-2103 ext. 1010 or (563) 581-2867
LYONS, NE - Today the Center for Rural Affairs released an analysis on the economic potential of wind energy development entitled, Renewable Energy and Economic Potential in Montana. The report examines economic impact, job creation and wind resources in Montana and is an addendum to an earlier report released by the Center in August.
"There is no legislation in Congress with greater potential to create jobs and directly impact rural economic development and revitalization in the Midwest, Great Plains and Intermountain West," said John Crabtree of the Center for Rural Affairs.
Expanding production of renewable electricity to 20% of the nation's electrical generation has the potential to create a large number of new jobs in the rural Great Plains, according to unpublished analyses from the US Department of Energy's National Renewable Energy Laboratory. The analysis projects that Montana would gain nearly 2,800 long-term jobs in operations and maintenance of wind farms. An even higher number of medium-term jobs, averaging one year in duration - jobs related to site preparation and turbine construction - would also be created.
Nationally, the analysis projects that reaching 20% of electrical generation from wind would result in 1.75 million full-time jobs during wind turbine construction and 1.6 million new, permanent operational (post-construction) jobs created.
"Climate legislation with a strong renewable electricity standard can be an economic driver for a state like Montana," said Carl Borgquist, President of Grasslands Renewable Energy, LLC out of Bozeman, Montana. "We're facing high unemployment and low wages. Developing our renewable energy infrastructure can turn those numbers around and attract long term investment in rural America."
The Center's report points out that creating 2,800 long-term, Montana jobs, is only part of the potential economic benefit of a 20% renewable electricity standard. Farmers and ranchers would stand to benefit as well - to the tune of approximately $14 million, $5,000 per wind turbine, in annual payments for leasing land for wind turbines, access roads and the like. Wind energy development initiatives that allow farmers and ranchers to share in the ownership of turbines as well as the profits generated by their operation would provide even greater economic benefits.
"We recognize the importance of developing our renewable energy resources in Montana and think it can be balanced with the needs of fish, wildlife and their habitats," commented T.O. Smith, Montana Fish, Wildlife and Parks Bureau Chief for Strategic Planning. "In this way, Montanans can enjoy the immediate economic benefits of renewable energy development and ensure that the economy of fishing, hunting and outdoor recreations persists long after energy development benefits are recognized," Smith added.
The state-by-state projections were prepared in conjunction with the National Renewable Energy Laboratory's report 20% Wind by 2030, but never formally published. Those projections form the basis for the state facts sheets included in the Center for Rural Affairs' Renewable Energy and Economic Potential report. The Montana fact sheet is being released today by the Center for Rural Affairs as an addendum to the original report.
According to Crabtree, whether or not the potential for wind energy to revitalize the rural areas of the Midwest and Great Plains is realized depends in large measure on the fate of federal renewable energy legislation, especially in the United States Senate. "There is likely to be an effort to raise the standard when the bill comes before the full Senate, and some will describe it as an environmental measure. But to rural people in Montana, it is an unprecedented once-in-a-lifetime federal legislation to create genuine economic opportunity and a better future in their communities," said Crabtree.
Senate renewable energy legislation would facilitate development of a national interstate electric transmission grid to move electricity from areas that have the resources for renewable production to areas with high demand. It would be tailor-made for moving wind from the wind rich Great Plains to the nation's population centers. The costs of developing the grid would be shared among all beneficiaries, including both electricity producers and consumers.
The bill also includes a critically important Renewable Electricity Standard. It would ostensibly require that 12 percent of the nation's electric generation come from renewable sources, including wind, solar, geothermal, new hydroelectric, biomass and landfill generation, by the year 2021.
A National Renewable Energy Laboratory study, Comparative Analysis of Three Proposed Federal Renewable Electricity Standards, concludes, however, that the legislation would effectively require renewable production of less than 10 percent of nation's electricity by the year 2021. That is less renewable electricity production than the study projects in its baseline, which assumes that Congress takes no action to promote renewable production of electricity.
"The renewable electricity standard is important, but it is crucial that the standard that came out of the Senate Energy Committee be strengthened on the floor of the Senate in order for the rural Midwest, Intermountain West and Great Plains to realize the fullest economic potential of wind energy development," Crabtree added.
The Montana addendum to the Renewable Energy and Economic Benefit report can be viewed and downloaded at: http://files.cfra.org/pdf/Montana-Wind-Energy.pdf
A full copy of the original report can be viewed and downloaded at: http://files.cfra.org/pdf/Renewable-Energy-and-Economic-Potential.pdf
Expanding production of renewable electricity to 20% of the nation's electrical generation has the potential to create a large number of new jobs in the rural Great Plains, according to unpublished analyses from the US Department of Energy's National Renewable Energy Laboratory. The analysis projects that Montana would gain nearly 2,800 long-term jobs in operations and maintenance of wind farms. An even higher number of medium-term jobs, averaging one year in duration - jobs related to site preparation and turbine construction - would also be created.
Nationally, the analysis projects that reaching 20% of electrical generation from wind would result in 1.75 million full-time jobs during wind turbine construction and 1.6 million new, permanent operational (post-construction) jobs created.
"Climate legislation with a strong renewable electricity standard can be an economic driver for a state like Montana," said Carl Borgquist, President of Grasslands Renewable Energy, LLC out of Bozeman, Montana. "We're facing high unemployment and low wages. Developing our renewable energy infrastructure can turn those numbers around and attract long term investment in rural America."
The Center's report points out that creating 2,800 long-term, Montana jobs, is only part of the potential economic benefit of a 20% renewable electricity standard. Farmers and ranchers would stand to benefit as well - to the tune of approximately $14 million, $5,000 per wind turbine, in annual payments for leasing land for wind turbines, access roads and the like. Wind energy development initiatives that allow farmers and ranchers to share in the ownership of turbines as well as the profits generated by their operation would provide even greater economic benefits.
"We recognize the importance of developing our renewable energy resources in Montana and think it can be balanced with the needs of fish, wildlife and their habitats," commented T.O. Smith, Montana Fish, Wildlife and Parks Bureau Chief for Strategic Planning. "In this way, Montanans can enjoy the immediate economic benefits of renewable energy development and ensure that the economy of fishing, hunting and outdoor recreations persists long after energy development benefits are recognized," Smith added.
The state-by-state projections were prepared in conjunction with the National Renewable Energy Laboratory's report 20% Wind by 2030, but never formally published. Those projections form the basis for the state facts sheets included in the Center for Rural Affairs' Renewable Energy and Economic Potential report. The Montana fact sheet is being released today by the Center for Rural Affairs as an addendum to the original report.
According to Crabtree, whether or not the potential for wind energy to revitalize the rural areas of the Midwest and Great Plains is realized depends in large measure on the fate of federal renewable energy legislation, especially in the United States Senate. "There is likely to be an effort to raise the standard when the bill comes before the full Senate, and some will describe it as an environmental measure. But to rural people in Montana, it is an unprecedented once-in-a-lifetime federal legislation to create genuine economic opportunity and a better future in their communities," said Crabtree.
Senate renewable energy legislation would facilitate development of a national interstate electric transmission grid to move electricity from areas that have the resources for renewable production to areas with high demand. It would be tailor-made for moving wind from the wind rich Great Plains to the nation's population centers. The costs of developing the grid would be shared among all beneficiaries, including both electricity producers and consumers.
The bill also includes a critically important Renewable Electricity Standard. It would ostensibly require that 12 percent of the nation's electric generation come from renewable sources, including wind, solar, geothermal, new hydroelectric, biomass and landfill generation, by the year 2021.
A National Renewable Energy Laboratory study, Comparative Analysis of Three Proposed Federal Renewable Electricity Standards, concludes, however, that the legislation would effectively require renewable production of less than 10 percent of nation's electricity by the year 2021. That is less renewable electricity production than the study projects in its baseline, which assumes that Congress takes no action to promote renewable production of electricity.
"The renewable electricity standard is important, but it is crucial that the standard that came out of the Senate Energy Committee be strengthened on the floor of the Senate in order for the rural Midwest, Intermountain West and Great Plains to realize the fullest economic potential of wind energy development," Crabtree added.
The Montana addendum to the Renewable Energy and Economic Benefit report can be viewed and downloaded at: http://files.cfra.org/pdf/Montana-Wind-Energy.pdf
A full copy of the original report can be viewed and downloaded at: http://files.cfra.org/pdf/Renewable-Energy-and-Economic-Potential.pdf
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