12.0 SOCIOECONOMICS
12.1 Applicability
This section addresses the study of social and economic effects of the Project, and provides certain economic, demographic, and safety information. The Project would be a major source of investment in the local economy, especially local labor markets - an activity that also yields secondary beneficial economic effects. Safety and emergency response issues will also be addressed in the context of community services. Safety of any land use is of fundamental importance both to its owner and nearby businesses and residences. Its inclusion, in terms of a description of safety features, is also required by Article X and the Siting Board regulations. PSL §164.1 and §168.2, 16 NYCRR 1001.3.
12.2 Potential Impacts and Benefits
12.2.1 Community
Pursuant to proposed Stipulation 7, TGE will study to what extent the Project will benefit Community District One (Greenpoint and Williamsburg), the Borough, and the City by increasing local employment opportunities and expanding the local economy during both its construction and operation phases. The Project is not expected to cause undue stress or demand on existing local services. Because tax revenue from the Project must be paid to general city coffers, TGE expects to make additional payments through New York City's "Industrial and Commercial Incentive Program" (ICIP). In general, this program provides a mechanism whereby a portion of an industry's tax incentive is allocated to support desired community goals. The funds are meant to be used directly within the impacted community.
12.2.2 Citywide
The Project is expected to be a major source of investment in the City's economy. The locally available labor pool is so extensive that all or most specialized construction and operational labor is available in the area. Thus, the Project will benefit the City by increasing local employment opportunities and expanding the local economy during both its construction and operation phases, and is expected to do so without a significant increase in demand on local services. The Project will also contribute revenues to municipal services and the school system. The Project will help to lower the cost of electricity and thus will indirectly contribute to the economy through these energy cost savings.
The Application proposes to follow the CEQR methodology, which establishes thresholds for analysis on community facilities and services. These thresholds will be presented and analyzed.
12.2.3 Construction
The construction labor force would be unionized. It would be comprised of local workers to the fullest extent possible. A variety of skilled workers would be employed during various phases of Project construction, including boilermakers, carpenters, crane operators, electricians, ironworkers, laborers, masons, millwrights, plumbers, pipefitters, and sheet metal workers. Local trade and service establishments would realize increased business. Local goods and services would also be purchased whenever possible. Local retail and commercial establishments could expect increased business during construction.
Due to the excellent infrastructure around the Project site, no significant demand on local police or fire resources is anticipated. Because the construction work would occur over a relatively limited time period and is expected to draw upon the existing regional workforce, no or minimal increased demand on local school districts is expected. These issues will be studied in more detail in the Application pursuant to proposed Stipulation 7.
12.2.4 Operation
Once in operation, the Project is expected to continue to provide economic benefits to New York City, Brooklyn, and the Greenpoint and Williamsburg neighborhoods. The Project will become a significant contributor of revenues without significantly drawing upon other municipal or school resources. In addition to local and regional economic benefits derived from lower electricity and steam costs, system reliability will be enhanced by the addition of electric generating capacity close to the City's electrical loads.
On-site fire protection equipment will be available, and emergency plans will be developed in coordination with local emergency services to ensure that appropriate staff and equipment will be available to respond effectively to emergencies.
12.3 Economic Analyses
12.3.1 Direct Spending and Payroll
In the Application, as proposed in Stipulation 7, TGE will document its investment into the New York City area. The direct investment would include (1) the construction payroll during the time construction is occurring; (2) non-payroll purchases likely to be made in the vicinity of the Project (materials, services, rentals, etc.) during the period of construction; (3) the payroll for on-site staff during operations; and (4) non-payroll operations and maintenance expenditures made locally.
12.3.2 Secondary Economic Effects
"Secondary economic effects" are the additional spending and investment that occur due to a project's initial investment, including increases in earnings and new jobs. To calculate such effects, TGE will use an input-output econometric model, or the results of an accepted model, to track various types of investments and correlate them with economic growth. Econometric models calculate multiplier effects that make it possible to estimate the positive indirect impact of investment for businesses such as local shops, service suppliers, parts suppliers, and the labor market.
To assess the Project's economic effects, TGE will first estimate the number of workers that would be required both during construction and operation. Generally, the most pronounced economic benefit in terms of the number of jobs would occur during construction, although the operations jobs associated with the Project would require skilled and qualified local labor. Using economic multipliers, TGE will estimate the additional indirect infusion into the economy that the Project would provide. This will be a calculation of capital and labor investment within the region, multiplied by the appropriate multipliers for an energy facility being built and operated in New York City. It will include an estimate of increases in sales (output), earnings, and job creation due to the Project.
12.3.3 Work Force Availability and Accommodation
Availability of work force depends upon the construction workforce that is within commuting distance. It is anticipated that all construction trades are available in commuting distance of the Project. If the study of work force requirements versus the available labor supply reveals that there will need to be an in-migration of any workers, TGE will then study the impact of such temporary workers' accommodation. If there is sufficient labor supply within commuting distance, then this analysis will not be needed and will not be conducted.
12.3.4 Taxation of Real Property
TGE will identify all public jurisdictions within New York City that currently assess property tax or benefit charges on the Project site. TGE will obtain the most recent assessed value and, for each jurisdiction, the most recent tax rate on the property. Likewise, the taxes levied will be listed. The aforementioned New York City ICIP program will be described.
12.4 Safety and Emergency Response
The Application will include a detailed description of all on-site equipment and systems employed to prevent any fire emergencies or hazardous substance incidents. The basic parameters of New York State's Uniform Fire Prevention and Building Code, NFPA 850 regulations, and New York City regulations will also be outlined.
Additionally, included will be a description of contingency plans to be implemented in response to the occurrence of a fire emergency or a hazardous substance incident. As an appendix to the Application, TGE anticipates that it will submit a draft emergency response plan. Once built, emergency response at the Project would be implemented in accordance with the Project's final emergency response plan, which would be continuously updated to reflect improvements in industry safety standards.
The purpose of the emergency plan is to define both the preventive and response measures for various types of emergencies, to ensure maximum preparedness for various unlikely emergency events. TGE may examine existing emergency response arrangements at nearby facilities as part of emergency plan development. Attachments within the final plan will include emergency phone numbers, standard operating procedures to respond to different types of events, medical emergency information, fire emergency response, law enforcement/security response, severe weather emergency response, and other specifics.