As local government officials and other stakeholders increasingly take a critical approach to proposed projects, organizations are seeking more effective ways to share their stories. One such strategy is to use an Economic Impact Assessment (EIA) to demonstrate the positive effects a project has on the local economy. For some socioeconomic analyses, a qualitative discussion of the types of benefits a project will generate, along with projected employment figures and tax revenue estimates, can suffice. Other projects, however, can create significant economic benefits that may not be well understood by local government and other key stakeholders. An economic impact study solves this problem by quantifying economic benefits that are anticipated to occur in a given area, such as a county or state.
EIAs rely on publicly available economic impact models to generate estimates of output, employment, income, and tax impacts. The economic impact models use financial and economic data gathered by the US Census Bureau, the US Bureau of Labor Statistics, the US Bureau of Economic Analysis and others to capture consumer and business spending patterns and the inter-relationships between industries. The model’s economic multipliers can quantify the influence of a project’s construction or a facility’s operation and the subsequent rounds of economic activity. The use of an economic impact model allows the economic effects associated with the construction and operation activities to be evaluated objectively using a standardized approach based on reliable data and methodology developed by economists over time.
Related Services
Economic Multipliers Capture the Impacts of Secondary (Business-to-Business) Spending
Some examples of TRC’s work in this arena are summarized below. TRC recently used IMPLAN, a model that is most commonly used to capture the impacts of new or ongoing facilities, to model the impacts of a proposed warehouse complex on a brownfield site in Tacoma, Washington. TRC is using IMPLAN to evaluate the economic impacts associated with a quarry and asphalt plant in Massachusetts. In addition, TRC uses the National Renewable Energy Laboratory (NREL) Jobs and Economic Development Impact (JEDI) solar voltaic and wind energy models for renewable energy projects in New York.
EIAs May Be Performed For a Variety of Reasons
- EIAs can serve an important role in sharing the story of the project’s economic benefits to the community. Our clients have used the results of EIAs to provide public officials with quantified effects of a project in terms of direct, indirect and induced local jobs and income. EIA results are also often shared at public meetings to provide stakeholders with an understanding of local benefits.
- Socioeconomic analyses for National Environmental Policy Act (NEPA) documents are often largely qualitative, with only limited data provided on employment, local spending and anticipated tax revenues. However, for more complex projects, such as the CSX Howard Street Tunnel project and the federal actions associated with the Obama Presidential Center, an EIA provides much needed context to the Environmental Assessment (EA). Such projects can have significant short term construction impacts, as well as long term operational impacts.
- Increasingly, states and local jurisdictions are requiring socioeconomic analyses. As with NEPA documents, these analyses are often qualitative. However, we are beginning to see requirements for EIAs.
- Property tax abatement or special property tax considerations, such as payments in lieu of taxes (PILOT), can be supported through the use of EIAs. By quantifying the economic benefits associated with a project, a local jurisdiction can better understand the trade-offs from offering a property tax abatement/PILOT.
How Can TRC Help?
TRC has staff experienced in performing EIAs for a variety of projects across the United States. Our experience includes communicating the results of EIAs via NEPA documents, permitting documents and stakeholder-focused fact sheets. TRC’s subject matter expert in EIAs is available to assist with any evaluation of economic impacts across the country.
Related Materials
TRC Expert Services
TRC Expert Services Published
Sharing Our Perspectives
Our practitioners share their insights and perspectives on the trends and challenges shaping the market.
Changes to EPA’s Risk Management Program (RMP) Regulations Are Coming
April 14, 2023
Changes to the Risk Management Program (RMP) regulations were signed into a final rule on February 27, 2024, by EPA Administrator Michael S. Regan.
EPA Finds Trichloroethylene Presents Unreasonable Risk in Final Risk Evaluation
April 6, 2023
On Jan 9, 2023, the United States Environmental Protection Agency (EPA) revised the Toxic Substance Control Act (TSCA) to reflect a new risk determination for trichloroethylene (TCE).
Proposed Use of a Hazard Index for PFAS National Primary Drinking Water Regulation (NPDWR)
April 4, 2023
The Proposed MCL and MCLG for the four PFAS, PFNA, PFHxS, GenX, and PFBS, considers their toxicity as additive. The EPA has proposed a HI of 1.0 as the MCL and MCLG for the four PFAS combined.
Using the R2 Guidance in Indiana
March 21, 2023
TRC outlines the new R2 Guidance in Indiana
Routinely Evaluating the Health & Effectiveness of Integrated Systems to Manage EHS/ESG Risks – Part I
March 1, 2023
Once established, an EHS/ESG management system must be routinely evaluated to ensure it remains effective to identify and control risks, as well as accommodate and adjust for changes that occur to/within the organization.
Consequences of a Lowered NAAQS for PM2.5
February 16, 2023
TRC breaks down the significance of EPA lowering the NAAQS for PM₂.₅
EPA Announces $2 Billion in Funding to Address Emerging Contaminants in Drinking Water
February 14, 2023
Environmental Protection Agency Administrator Michael Regan announced $2 Billion in infrastructure funding to help the nation’s rural water supplies.
EPA Publishes Effluent Guidelines Program Plan 15
February 14, 2023
The EPA announced updated effluent limitations guidelines under Plan 15, focusing on the evaluation and rulemaking process for per- and polyfluoroalkyl substances (PFAS) discharges.
Phase I ESA ASTM Standard Update: The Wait is Over
December 21, 2022
The USEPA published a Final Rule making the ASTM E1527-21 Phase I ESA standard AAI compliant.
Proactive Enforcement is Key in the EPA FY2022-2026 Strategy
October 19, 2022
A core element of the EPA FY2022-2026 Strategic Plan focuses on environmental compliance.
Preparing for EPA Inspections in Environmental Justice Communities
October 4, 2022
The EPA Office of Enforcement and Compliance Assurance Have Expanded Goals to Strengthen Enforcement and Protections Within EJ Communities
New National Emerging Contaminants Research Initiative
September 12, 2022
The Executive Office of the President of the United States announced a National Emerging Contaminant Research Initiative
NERC Proposes Implementation Guidance for PRC-019-2
August 22, 2022
NERC has proposed implementation guidance for PRC-019-2, the standard that verifies coordination of generating unit facility or synchronous condenser voltage regulating controls, limit functions, equipment capabilities and protection system settings.
Optimizing EHS/ESG Information Management and Reporting Systems by Leveraging Innovative Digital Technology Solutions
August 10, 2022
A single, integrated enterprise wide EHS/ESG IMS can significantly improve performance and communicate progress towards organizational requirements and goals.
Revisions to FAC-001 and FAC-002 Submitted for FERC Approval
July 12, 2022
Reliability Standards FAC-001-4 and FAC-002-will resolve uncertainty regarding the meaning of “materially modify” under the currently effective standards.
FERC Order No. 881-A Has Implications for NERC Compliance Programs
June 23, 2022
Updated Order will have significant impact on NERC compliance programs related to both PRC standards and facilities ratings. Utilities should review the Order’s requirements and prepare for changes needed to remain compliant.
Integrating Sustainability, Digital Connectivity and Design Optimization in Wastewater Treatment Systems
June 20, 2022
Some organizations rarely think about water and wastewater treatment, until there is a problem. American industry depends on the ability to treat wastewater discharges while complying with regulatory standards and addressing emerging contaminants. If wastewater treatment fails, our environment is negatively impacted, and companies are exposed to shutdowns, delays and fines.
Climate Action and Environmental Justice are at the Forefront of EPA’s Strategic Plan
June 14, 2022
The EPA issued its Fiscal Year 2022-2026 Strategic Plan. Although the strategic plans emphases often change with administrations, we can be reasonably certain that the Plan reflects priorities through 2024.
NERC’s Revised PRC-024-3 Standard for Inverter-Based Generation Effective in October 2022
May 11, 2022
Changes to PRC-024-3 in support of inverter-based generation performance are going into effect in October of this year. Interconnection programs and documentation procedures may need to be updated in order to maintain compliance.
FERC Issues Notice of Inquiry Regarding Dynamic Line Ratings
April 25, 2022
There are significant technical challenges involved in implementing Dynamic Line Ratings in the planning and operation of utility systems. Utilities should be prepared to modify their NERC compliance programs as necessary to address the potential introduction of DLR in their businesses.
Why Are ESG Frameworks Important?
April 13, 2022
ESG standards significantly impact long-term growth, leading many companies to integrate ESG reporting into their corporate social responsibility (CSR) strategies. ESG frameworks are broad and diverse, and establishing a reporting system that covers your industry’s most relevant metrics can be challenging.
EPA Coal Ash Compliance Expectations Updated
March 28, 2022
New EPA Communications highlight new Coal Combustion Residual compliance expectations, a shift from the current program.
New NERC Guidance Supports the Implementation of Grid Forming Inverters
March 8, 2022
NERC has issued a new report highlighting the key attributes of various inverter controls to support proper implementation and to protect reliability.
NERC Recommends Approaches for Underfrequency Load Shedding Programs
February 24, 2022
In a recently released reliability guideline, NERC recommends additional approaches for Underfrequency Load Shedding (UFLS) program design to help utilities effectively consider the effects of Distributed Energy Resources (DERs). The guidance was developed to address the accelerated transition of the power system to locally installed, decarbonized resources that depend on inverters. These new technologies introduce operational controls issues into the electric grid. UFLS data gathering and analysis methodologies may require modification to address reliability risks.
NERC and FERC Recommend Protection System Commissioning Improvements
January 18, 2022
Between 18 and 36 percent of reported utility misoperations were attributed to issues that could have been detected through a properly implemented PSC.
FERC & NERC Issue Joint Report on Freeze Reliability Failures
December 15, 2021
The in-depth report outlines twenty-eight recommendations to address freeze reliability failures, including operating practices and recommendations for NERC standards modifications surrounding generator winterization and gas-electric coordination.
NERC Accelerates Additional Cold Weather Standards Changes
November 22, 2021
At its November 2021 meeting, NERC’s Board of Trustees took aggressive action to advance critical cold weather Reliability Standards. Most notably, the group approved the 2022-2024 Reliability Standards Development Plan, which prioritizes standards projects for the coming years including a resolution to include new cold weather operations, preparedness and coordination standards as high priority development projects.
OSHA’s National Emphasis Program on Heat-Related Illness and Injuries
November 3, 2021
On September 20, 2021 in an OSHA National News Release, OSHA published a memorandum establishing an enforcement initiative that is designed to prevent and protect employees from heat-related illnesses and death. This initiative, which develops a National Emphasis Program (NEP) on heat inspections, is an expansion of an already existing Regional Emphasis Program (REP) in OSHA’s Region VI, which covers Arkansas, Louisiana, New Mexico, Oklahoma and Texas.
New Potential Compliance Standards Identified at FERC Technical Conference on Reliability
October 18, 2021
With a focus on the reliability impact of extreme weather and the shortcomings of current system planning approaches, both NERC and FERC conference participants opened the door to potential forthcoming compliance standard enhancements or changes.
NJDEP Implements New Jersey Environmental Justice Law Through Administrative Order
October 5, 2021
On September 22, 2021, the New Jersey Department of Environmental Protection (NJDEP) Commissioner announced the issuance of Administrative Order (AO) No. 2021-25 to implement New Jersey’s Environmental Justice (EJ) Law. This order is effective immediately, and applicants seeking to site new major source facilities, renew major source permits or expand existing facilities with major source permits (e.g., Title V air permits) in overburdened communities are affected. There are more than 4.5 million people that live within 331 municipalities that are overburdened communities in the state of New Jersey.
OSHA Returns to In-Person Inspections As COVID-19 Restrictions Lift
August 4, 2021
The Occupational Safety and Health Administration (OSHA) is authorized by the Occupational Safety and Health Act of 1970 (OSH Act) to assure employers provide safe and healthful work conditions free of recognized hazards and by setting and enforcing standards and providing training, outreach, education and technical assistance. OSHA has recently announced the return to in-person inspections as COVID-19 restrictions begin to lift.
NERC Proposes Revisions to CIP-008
March 27, 2021
NERC’s CIP-008 standard aims to mitigate reliability risks resulting from a Cyber Security Incident by specifying incident response requirements. Newly proposed revisions would augment mandatory reporting to include incidents that compromise, or attempt to compromise, a utility’s Electronic Security Perimeter (ESP) or associated Electronic Access Control or Monitoring Systems (EACMS).
EPA continues to aggressively address PFAS wastewater with two new strategies
January 4, 2021
EPA takes steps toward PFAS wastewater and storm water permitting, and analytical methods for testing.
Ecological Risk of PFAS from AFFF-Impacted Sites
June 30, 2020
The facts on evaluating exposure to wildlife
Targeting Perfection in the Construction and Operation of Pipelines
October 18, 2019
To have an impact on the delivery or operation of a pipeline, it’s vital to eliminate the intra- and inter-company barriers, including those in the areas of communications, culture and technology.
PHMSA Publishes New Rules to Increase the Safety of Hazardous Liquid Pipelines and Gas Transmission Pipelines
September 25, 2019
The Pipeline and Hazardous Materials Safety Administration this week published important new rules aimed at improving pipeline safety.
NERC Calls for New Approach to Reliability Planning Due to Gas Supply Disruption Risks
December 14, 2017
A recently published NERC report concludes that as reliance on natural gas to meet electric generation requirements increases, additional planning and operational measures must be considered to mitigate power system reliability risks.
