(March 22, 2011) In a first-of-its-kind economic study, the U.S. Chamber of Commerce has identified 31 stalled energy projects in California that, collectively, are costing the state’s economy $59.1 billion in gross domestic product (GDP) and 142,100 jobs a year that could be created during the construction phase of the projects alone.
The economic study estimates the potential loss of investment and jobs in 351 proposed renewable, coal, natural gas, nuclear and transmission projects in 49 states.
The projects have been delayed or canceled due to “Not in My Backyard” activism, a broken permitting process, and a system that allows for limitless lawsuits by opponents, according to the U.S. Chamber.
The study features a state-by-state analysis that details the economic output and jobs that could be created by acting on these stagnant projects.
Among the 31 California energy projects listed by the study is Sunrise Powerlink, a 117-mile transmission line from Imperial County to San Diego. Construction for the California Chamber of Commerce-supported project began on December 9, 2010, following several years of public education efforts and testimony before regulatory bodies. The line is expected to begin service in 2012.
GDP/Jobs Benefits
The study found that if the projects were built and operated for 20 years, the benefit would be an estimated $3.4 trillion in U.S. GDP.
This benefit would include $1.4 trillion in employment earnings and an additional 1 million jobs per year. Nearly half of the projects identified in the study are renewable energy projects.
Other findings include:
- Investment Phase: Planning and construction of the projects would generate $577 billion in direct investment and would result in an approximately $1.1 trillion increase in U.S. GDP. An estimated 1.9 million jobs would be required during each year of construction.
- Operations Phase: Operation of the projects would generate $99 billion in direct annual output and would yield $145 billion in increased GDP annually. An estimated average of 791,200 jobs would be created per year of operation.
Additional Information
The study by TeleNomic Research was conducted by Steve Pociask, president of the American Consumer Institute, and Joseph Fuhr, professor of economics at Widener University and senior fellow at the American Consumer Institute.
An in-depth breakdown of every stalled project appears at www.projectnoproject.com.
The full study, “Project Denied: The Potential Economic Impact of Permitting Challenges Facing Proposed Energy Projects,” is available at the U.S. Chamber website.
Staff Contact: Brenda Coleman