VANCOUVER, Wash., Aug. 22, 2014 /PRNewswire/ -- A new, independently conducted economic impact assessment from Analysis Group shows the proposed Vancouver Energy terminal will deliver significant economic benefit to the region, generating $2 billion in economic value and creating an average of more than 1,000 jobs annually.
"Analysis Group's findings confirm our previous analysis. Vancouver Energy will have a major, positive economic impact on Vancouver and the region through the creation of an average of more than 1,000 jobs annually and billions of dollars in economic value added for the city, region and state of Washington," said Jared Larrabee, Vancouver Energy general manager. "In a recent poll, 69 percent of Clark County respondents and 64 percent of respondents statewide expressed support for the Vancouver Energy terminal, largely because of its potential economic benefits and contribution to U.S. energy independence efforts in an uncertain world. This latest assessment confirms they're right. We remain committed to improving the local and state economy, and we remain committed to operating safely and promoting our nation's energy independence while doing so."
The projected economic impacts identified in the assessment include:
- $2 billion in economic value to the local and regional economy ($1.2 billion present value) through labor income and tax revenues, as well as income and profits created as a result of the terminal's direct, indirect and induced impacts
- $1.6 billion in labor income ($890 million present value) during its construction and assumed first 15 years of operation
- $22 million, one-time payment in state and local taxes during construction
- $7.8 million in tax revenue annually once fully operational
Additionally, the terminal is expected to bring much-needed, high-value jobs to the region, including:
- 320 full-time or equivalent jobs during construction
- 176 direct, on-site jobs and 440 direct, off-site jobs once the terminal is fully operational
Additional indirect and induced jobs will be created by suppliers to the project and by subsequent rounds of spending in the region, bringing the total average number of jobs created by the project to over 1,000 jobs annually.
The economic impact assessment was conducted using best practices and proven methodologies by Dr. Todd Schatzki, Analysis Group Vice President, and Dr. Bruce Strombom, Analysis Group Managing Principal, who combine extensive experience in economic impact studies and energy and environmental analysis. Though commissioned by Tesoro Savage Petroleum Terminal LLC, the opinions expressed in the independent assessment are exclusively those of the authors.
"Our analysis finds that the development of Vancouver Energy would lead to increases in employment, labor income and tax revenues. These reflect the direct employment and local business activity from Vancouver Energy's construction and operation, as well as the multiplier effects as activity ripples through the region's economy," said Dr. Strombom.
The assessment is one of many studies that have been or will be provided to the Energy Facility Site Evaluation Council (EFSEC) – the body in charge of reviewing and permitting large, energy-related projects in Washington – as part of the preliminary draft environmental impact statement. Once EFSEC completes its thorough review process, it will make a recommendation to Washington Gov. Jay Inslee, who will make the final decision on permitting the terminal.
For more information about Vancouver Energy or to view the Analysis Group assessment in its entirety, visit VancouverEnergyUSA.com.
Analysis Group's "Assessment of Vancouver Energy Socioeconomic Impacts: Primary Economic Impacts" focuses on four metrics from the IMPLAN model that measure the impacts on a region's economy: employment, labor income, tax revenue and total economic value added. IMPLAN was used to gauge the economic impact of Vancouver Energy on the city of Vancouver and the 10 counties within a one-hour drive from the proposed terminal's location. Timing included Phase I of construction in year one; Phase II of construction to bring the facility to full capacity and start-up operations in year two; and the next 14 years during which the facility is fully operational.
About Analysis Group
Analysis Group's more than 500 professionals provide economic, financial and business strategy consulting to leading law firms, corporations and government agencies. The firm's 11 offices are located in Boston, Chicago, Dallas, Denver, Los Angeles, Menlo Park, New York, San Francisco and Washington, DC; and internationally in Montreal and Beijing. For more information, visit analysisgroup.com.
About Vancouver Energy
Vancouver Energy will serve a basic and important function: the safe transfer of North American crude oil from rail to ship. Doing so enables the crude oil to be efficiently transported to West Coast refineries, where it will be converted into transportation fuels for American families and businesses. Tesoro Refining & Marketing Company LLC and Savage Companies formed a joint venture to fully leverage their shared experience and expertise in safely and responsibly moving, storing and handling crude oil. The joint venture will develop, own and operate the proposed terminal at the Port of Vancouver USA – Vancouver Energy – subject to regulatory approval. For more information on Vancouver Energy, visit VancouverEnergyUSA.com.
Jennifer Minx, Vancouver Energy
Eileen Harrington, Analysis Group
SOURCE Vancouver Energy; Analysis Group