Economic Assessment of Proposed Brockton Clean Energy Facility

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EXECUTIVE SUMMARY
Economic Impacts – Citywide & Regional
The construction and eventual operation of the proposed Brockton Clean Energy facility (“the Project”) will create economic impacts for the city and the larger 3-county regional ‘Metro South’ economy which Brockton is a part of. The MetroSouth region consists of Bristol, Norfolk, and Plymouth counties. Plymouth County is where Brockton is located. Economic impacts include the direct spending associated with the Construction Phase and Operations and Maintenance & Phase activities, subsequent indirect impacts from cycles of businesses making purchases of local
supplies/services, and induced impacts from workers’ spending take-home wages where they live.

During the 26-30 month construction phase, the Project brings $368.6 million in total economic stimulus, new tax revenues and new job salaries. The economic impacts emerge as follows :
City of Brockton:

 

• Direct Construction Budget: $279.6 million of direct economic stimulus
• including 300 new construction jobs and $47 million in new wages;Indirect: $4.4 million of indirect economic stimulus including 22 new jobs and $1.7 million in new wages;
• Induced: $8.8 million of induced economic stimulus including 73 new jobsand $3.0 million in new wages;

Rest of Greater Brockton Region:

• $75.8 million of additional economic stimulus benefits in the 3-county region including 362 new construction-related and other required services jobs and $36.4 million in new wages;

During the 30 year Operation and Maintenance Phase, the Project brings $12.5 million in total economic stimulus, new tax revenue and new job salaries annually. The economic development can be outlined as follows:

City of Brockton:

• Direct Annual Budget: $6.1 million of direct economic stimulus including 22 new positions and $2.6 million in new wages
• Indirect: $3.4 million of indirect economic stimulus including 15 new positions and $1.7 million in new wages
• Induced: $816k of induced economic stimulus including 6 new positions and $388k in new wages

Rest of Greater Brockton Region:
$2.1 million of additional economic stimulus benefits in the 3-county region including 14 new operation-related and services jobs and $1 million in new wages.

The Project accomplishes three key outcomes – additional capacity of clean energy generation into the regional energy marketplace which itself has likely positive economic implications to energy customers; new revenues contributed by
the facility to the City of Brockton to support municipal programs; and economic development opportunities (vis a vis construction-related and annual O&M spending) for new business sales, household income creation and future in-fill of
suppliers to the city’s economy.