Final Supplemental EIS for the Keystone XL Project

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Final Supplemental Environmental Impact Statement Chapter 4 Keystone XL Project Environmental Consequences 4 10 1 4 10 SOCIOECONOMICS 4 10 1 Introduction This section describes potential impacts to socioeconomic resources associated with the construction and operation of the proposed Project and connected actions and discusses potential mitigation measures that would avoid or minimize the


Final Supplemental Environmental Impact Statement Chapter 4. Keystone XL Project Environmental Consequences, The presentation of the proposed Project jobs numbers impacts has been standardized as. average annual jobs, A reference to Keystone s action plans for employment opportunities for minority and low. income populations has been included, The amount of property taxes that would be paid during operations has been revised. Appendix O Socioeconomics now includes a description of the IMPLAN model used in. the economic impact calculation methodology, The proposed Project is expected to take 1 to 2 years to construct and includes approximately. 875 miles of pipeline 20 pump stations and ancillary facilities e g access roads pump. stations and construction camps Construction of the proposed Project would contribute. approximately 3 4 billion to the U S GDP This number includes not only earnings by workers. but all other income earned by businesses and individuals engaged in the production of goods. and services demanded by the proposed Project such as profits rent interest and dividends. When compared with the GDP in 2010 the proposed Project s contribution represents. approximately 0 02 percent of annual economic activity across the nation This percentage. remains the same if the contribution is compared to the GDP in 2012 Construction contracts. materials and support purchased in the United States would total approximately 3 1 billion. with another 233 million spent on construction camps During construction this spending. would support a combined total of approximately 42 100 average annual jobs and approximately. 2 billion in earnings throughout the United States A job consists of one position that is filled. for 1 year Of these jobs, Approximately 16 100 would be direct jobs at firms that are awarded contracts for goods and.
services including construction directly by Keystone The other approximately 26 000 jobs. would result from indirect and induced spending this would consist of goods and services. purchased by the construction contractors and spending by employees working for either the. construction contractor or for any supplier of goods and services required in the construction. About 12 000 jobs or 29 percent of the 42 100 jobs would be held by residents of the four. proposed Project area states 1 of these 12 000 jobs approximately 5 400 would be direct jobs. and approximately 6 600 would be indirect and induced jobs Figure 4 10 1 1. The proposed Project would temporarily increase the population in the proposed Project area as. workers relocate to build the pipeline Approximately 10 400 construction workers engaged for. 4 to 8 month seasonal construction periods would be needed equating to approximately 3 900. jobs or 1 950 per year if construction took 2 years The workforce would be distributed by. construction spread pipeline section with approximately 900 to 1 300 workers allocated to. each spread Because of the specialized nature of the work Keystone estimates that only. approximately 10 percent of the construction workforce would be hired from the four proposed. Project area states, The proposed Project pipeline would go through Montana South Dakota and Nebraska with two additional pump. stations in Kansas There would also be a pipe yard and rail siding located in North Dakota. Final Supplemental Environmental Impact Statement Chapter 4. Keystone XL Project Environmental Consequences, Figure 4 10 1 1 Total Employment Supported by Construction of the Proposed. The total direct indirect and induced employment in the proposed Project area states. approximately 12 000 average annual jobs would result in approximately 405 million in total. earnings This accounts for about 20 percent of all earnings supported by the proposed Project. The remaining 80 percent or 1 6 billion would occur in other locations around the country See. Figure 4 10 1 2 for earnings and employment by industry. Final Supplemental Environmental Impact Statement Chapter 4. Keystone XL Project Environmental Consequences, Figure 4 10 1 2 Employment and Earnings by Industry Supported by Construction of the Proposed Project Total U S. Final Supplemental Environmental Impact Statement Chapter 4. Keystone XL Project Environmental Consequences, Because of the limited availability of temporary housing in the proposed Project area as well as. the likelihood that most of the construction workforce would come from outside the Project area. states additional temporary accommodations would be needed Keystone proposes to meet the. need through a combination of eight temporary construction camps in Montana South Dakota. and northern Nebraska and by using local accommodations in central and southern Nebraska. and in Kansas, The eight construction camps are estimated to generate the equivalent of 1 full year of property.
tax revenue for the seven counties where they would be located which is a total of about 4. million Short term revenues from sources such as sales and use taxes would total approximately. 66 million combined in the states that levy such a tax Yields from fuel and other taxes would. provide some additional economic benefit to host counties and states. Seventeen areas census tracts or block groups in the proposed Project area were identified as. meeting the minority and or low income population criteria established to assess the potential. environmental justice effects of the proposed Project All 17 areas are in counties that are or. contain Health Professional Shortage Areas HPSA and Medically Underserved. Areas Populations MUA P locations as listed by the U S Department of Health and Human. Services see Figure 4 10 1 3 areas with meaningfully greater minority or low income. populations are shown in green Impacts to these populations during construction could include. exposure to construction dust and noise disruption to traffic patterns and increased competition. In addition to avoidance and mitigation measures that Keystone proposes to minimize negative. impacts to all populations in the proposed Project area specific mitigation for environmental. justice communities during construction would involve ensuring that adequate communication in. the form of public awareness materials regarding the construction schedule and construction. activities is provided Keystone states that it would reach out to Local Emergency Planning. Committees LEPCs during and after the development of its emergency response plan and. produce public awareness materials with special emphasis on considerations of low income and. minority communities in those preparedness efforts. Construction activities could result in short term impacts to traffic and transportation. infrastructure but these would be minor and temporary Keystone would submit a road use plan. and coordinate plan implementation with appropriate state and county representatives. Once the proposed Project enters service operations would require an estimated 50 total. employees 35 permanent employees and 15 temporary contractors This small number would. result in negligible impacts on population housing and public services in the proposed Project. The total estimated property tax from the proposed Project in the first full year of operations. would be about 55 6 million spread across 27 counties in three states Figure 4 10 1 4 This. impact to local property tax revenue receipts would be substantial for many counties constituting. a revenue impact of 10 percent or more in 17 of the 27 counties that the proposed pipeline would. affect Operation of the proposed Project is not expected to have an impact on residential or. agricultural property values, Final Supplemental Environmental Impact Statement Chapter 4. Keystone XL Project Environmental Consequences,Page Intentionally Left Blank. Final Supplemental Environmental Impact Statement Chapter 4. Keystone XL Project Environmental Consequences,Source HPSA 2012a 2012b Esri 2013. Figure 4 10 1 3 Health Professional Shortage Areas and Medically Underserved Areas Populations in the. Socioeconomic Analysis Area, Final Supplemental Environmental Impact Statement Chapter 4. Keystone XL Project Environmental Consequences,Page Intentionally Left Blank.
Final Supplemental Environmental Impact Statement Chapter 4. Keystone XL Project Environmental Consequences, Note The purpose of the colors used in this figure is to visually separate counties. Figure 4 10 1 4 Estimated Annual Property Tax Revenue from the Proposed Project. Final Supplemental Environmental Impact Statement Chapter 4. Keystone XL Project Environmental Consequences, The proposed Project operation is not expected to disproportionately adversely impact minority. or low income populations In addition community outreach activities during construction. would continue throughout the proposed Project operations. Operation of the proposed Project would involve infrequent vehicle trips associated with routine. monitoring and maintenance of the proposed Project facilities and would not significantly affect. traffic or the capacity of roads in the vicinity of the proposed Project Section 4 13 5 Potential. Impacts discusses the potential impacts of a spill on socioeconomic resources. There are three connected actions of the proposed Project the Bakken Marketlink Project the. Big Bend to Witten 230 kilovolt kV Transmission Line Project and electrical distribution lines. and substations Each of the connected actions would create additional direct indirect and. induced employment and earnings throughout the United States Construction of the Bakken. Marketlink Project would support an estimated 1 000 jobs and 59 4 million in earnings The Big. Bend to Witten 230 kV Transmission Line would support a total of 1 100 jobs and 47 6 million. in earnings The electrical distribution lines and substations would have the largest economic. effect supporting approximately 3 100 jobs and 137 million in earnings across the United. States The impacts of the connected actions on other socioeconomic resources i e population. housing public services property taxes environmental justice property values and traffic and. transportation would be similar to those described for the proposed Project. 4 10 2 Impact Assessment Methodology, The following potential social and economic impacts were evaluated in the analysis. Overburdening of the local housing stock because of demand generated by the temporary and. permanent workforces, Substantial burden on public service providers serving the proposed Project area such that. they would need to expand their service capacities to meet those demands. Substantial changes to local social or economic activities including changes in employment. and income levels resulting from the proposed Project construction and operations. Substantial changes in economic impacts including output and spending. Substantial effects to potential environmental justice populations. Substantial changes in fiscal revenues including tax receipts of local jurisdictions. Substantial changes in private property values and. Substantial effects to transportation resources, Impacts are characterized as positive beneficial or negative adverse and where possible are.
evaluated relative to regional conditions to help assess the magnitude of socioeconomic effects. Socioeconomic impacts associated with potential releases are discussed in Section 4 13 Potential. Final Supplemental Environmental Impact Statement Chapter 4. Keystone XL Project Environmental Consequences,4 10 3 Impacts. 4 10 3 1 Construction, The proposed Project would require construction of approximately 875 miles of pipeline. 20 pump stations and other ancillary facilities as listed in Table 4 10 1. Table 4 10 1 Proposed Project Construction by State. Montana North Dakota South Dakota Nebraska Kansas,Permanent Facilities. Pipeline miles 285 0 316 274 0,Pump Stations 6 0 7 5 2. Mainline Valves MLVs 25 0 15 15a 0,Temporary Facilities.
Access Roads 84 0 59 48 0,Pipe Yards 9 1 11 TBDb 0. Contractor Yards 5 0 7 TBDb 0,Construction Camps 4 0 3 1 0. Railroad Sidings 3 1 3 TBDb 0,Sources Keystone 2012a 2012b. Locations for four of the MLVs in Nebraska have been determined It is estimated than an additional 11 MLVs will be required. in Nebraska but locations have not yet been determined. Construction facilities e g pipe yards contractor yards and railroad sidings for Nebraska have not been determined. Keystone states that proposed Project construction is expected to take 1 to 2 years While. construction related activities may occur across all five states concurrently actual time to. complete construction is uncertain Various factors including weather workforce constraints and. timing of permits would influence the duration of construction as would finalization of the. number of construction spreads that could be operated concurrently. Population, The number of residents within the proposed Project area would increase temporarily during. construction primarily as a result of the influx of construction workers The construction. workforce would consist of approximately 5 000 to 6 000 personnel per construction season 2. including Keystone employees contractor employees and environmental inspection staff This. number is equivalent to approximately 2 percent of the population of the counties in the. proposed Project area approximately 263 000 see Table 3 10 5 The workforce would be. distributed across the proposed pipeline route by construction spread 3 see Table 3 10 8 for. spread locations with approximately 900 to 1 300 personnel allocated to each spread It is. assumed that most would be housed in construction camps see next section. Population impacts in the proposed Project area would depend upon the composition of the. construction workforce in terms of local versus non local workers and the existing population of. the area Keystone estimates that approximately 10 percent of the total construction workforce. could be hired locally Keystone 2012c It is assumed that because of the specialized nature of. A total of 10 000 to 11 000 workers would be needed if the entire proposed Project were to be built concurrently. A construction spread is the length of pipeline that would be built under one contract or set of contracts The. proposed Project has 10 spreads see Section 3 10 2 3 Local Economic Activity. Final Supplemental Environmental Impact Statement Chapter 4. Keystone XL Project Environmental Consequences, much of the construction and because of the relatively small labor force and relatively low.
unemployment rate in the economic corridor counties i e counties that are likely to experience. daily spending by construction workers see Table 3 10 10 nearly all local hires would be from. the rest of state area i e counties outside the economic corridor but within the same state see. geographies definitions in Section 3 10 1 Introduction It is expected that few workers would be. accompanied by their families because of the short duration and mobile nature of the work. Therefore impacts to the proposed Project area population during construction would be. The proposed Project would require 5 000 to 6 000 construction workers each year of the. construction phase or 900 to 1 300 workers within any one construction spread 10 spreads. total Proposed Project construction would require temporary housing for almost all of these. The availability of short term housing varies across the proposed pipeline route As of 2012. there were approximately 2 000 available rental properties 3 300 hotel motel rooms and 2 000. recreational vehicle RV sites for a total of approximately 7 300 separate potential. accommodations within reasonable proximity commuting distance to the pipeline route see. Section 3 10 2 2 Housing Actual vacancy rates vary by year and season with the spring and. fall seasons having the lowest vacancy rates Therefore the actual availability of temporary. housing at any given time could be lower, The proposed Project related demand for housing 6 000 seasonal workers would take up. approximately 82 percent 6 000 divided by 7 300 of the estimated available temporary housing. along the pipeline route leaving only 18 percent to meet non Project related needs Therefore. the temporary housing available along the proposed pipeline route would likely be insufficient to. meet the demand for housing resulting from construction activities More urban areas such as. the central south Nebraska spreads have more short term housing available particularly hotel. and motel rooms, Keystone proposes to meet the housing need through a combination of construction camps and. local housing,Construction Camps, As discussed above most of the proposed Project area counties do not have sufficient temporary. housing to house all the necessary construction personnel Keystone proposes to construct eight. temporary construction camps to meet the housing needs in Montana South Dakota and. northern Nebraska see Table 4 10 2 approximately one camp per spread for construction. spreads 1 through 8, Final Supplemental Environmental Impact Statement Chapter 4. Keystone XL Project Environmental Consequences,Table 4 10 2 Proposed Construction Camp Locations.
County State Number of Construction Camps,Valley Montana 2. McCone Montana 1,Fallon Montana 1,Harding South Dakota 1. Meade South Dakota 1,Tripp South Dakota 1,Holt Nebraska 1. Source Keystone 2012d, Keystone states that each of the construction camps would typically house approximately 900 to. 1 300 workers including sleeping areas with shared or private baths Approximately 100 of the. workers would use on site RVs and the remainder would be housed in camp buildings The. camps would have recreation facilities media rooms kitchen dining facilities laundry facilities. a security infirmary unit offices and wastewater treatment facilities These temporary. construction camps would be permitted constructed and operated consistent with applicable. county state and federal regulations, Keystone states that it has established a camp Code of Conduct to control and manage behavior.
in all proposed Project camps All camp residents must agree to abide by the conditions of the. Code of Conduct or risk losing their camp residency status The Code of Conduct addresses camp. access control procedures bringing weapons into the camp disruptive or abusive behavior. alcohol use and criminal illegal activities, Keystone states that each camp site would be fully fenced and have a guard house at a single. entrance A contract security officer manning the guard house would be provided on a 24 7 basis. In addition at all times there would be at least one additional roving security officer. supplemented with off duty law enforcement personnel as needed Local law enforcement. agencies would also respond to violent criminal or illegal activities. Other Temporary Housing, In central south Nebraska where no construction camps are planned there are approximately 936. rental units 839 hotel motel rooms and 740 RV sites see Section 3 10 2 2 Housing Additional. temporary housing is available in surrounding counties that are in reasonable proximity This. temporary housing would be sufficient to accommodate the estimated 1 800 seasonal workers. needed for spreads 9 and 10 in central southern Nebraska. Keystone estimates that approximately 200 workers over 34 weeks would be needed for the two. pump stations in Kansas Clay and Butler counties with over 500 hotel motel rooms as well as. the nearby metropolitan areas of Wichita and Manhattan would have sufficient short term. housing to meet the needs of this workforce,Local Economic Activity. Economic activity is defined as the production of goods and services required to meet the. demand for construction of the proposed Project Funds spent by Keystone would trigger. production activity which could be expressed in terms of employment and earnings. Employment is expressed as annual average jobs including both full time and part time. Final Supplemental Environmental Impact Statement Chapter 4. Keystone XL Project Environmental Consequences, employment An average annual job consists of one position that is filled for 1 year An average. annual job could consist of two positions filled for a period of 6 months each three positions. filled for 4 months each or any combination that sums to a year of employment The modifier. average annual is intended to communicate that a job that lasts only 1 month is not counted as. one job but rather one twelfth of an average annual job Earnings is the value of all. compensation paid to employees or alternatively the cost of payroll to the employer in addition. to wages and salaries it includes such things as benefits payroll taxes bonuses and retirement. contributions, The impacts discussed here include three distinct components of economic activity direct.
indirect and induced Direct economic activity associated with construction includes all jobs and. earnings at firms that would be awarded construction contracts for the proposed Project Indirect. activity includes all goods and services that would be purchased by these construction. contractors in the conduct of their services to the proposed Project Examples of these types of. activities related to pipeline construction include the goods and services that would be purchased. to produce inputs such as concrete fuel surveying welding materials and earth moving. equipment Induced activity includes the spending of earnings that would be received by. employees working for either the construction contractor or for any supplier of goods and. services required in the construction process Examples of induced activities include spending by. access road construction crews welders employees of pipe manufacturers and ranchers. providing beef for restaurants and construction camps This section presents the sum of. employment and earnings from all three types of effects. Impacts were estimated using IMPLAN MIG Inc 2011 a proprietary input output modeling. system founded on data available from the U S Bureau of Economic Analysis Bureau of Labor. Statistics U S Census Bureau and other sources IMPLAN is regarded by government. agencies and academic institutions as a highly credible economic modeling system The most. recent IMPLAN data 2010 were used for the analysis Additional information regarding the. IMPLAN modeling system and its application in this Final Supplemental EIS analysis is in. Appendix O Socioeconomics, Construction activities in Montana South Dakota and Nebraska were modeled at three. geographic levels at the economic corridor counties level within each state see Table 3 10 8 at. the state level and at the national level Some expenditures were modeled at the economic. corridor level and then linked to the remaining area of each state to capture effects occurring. outside the economic corridor Some expenditures were only modeled at the state level when it. was clear that the economic corridor was unlikely or unable to provide goods and services. required for construction Impacts modeled at the state level were linked to all remaining states. in the country to capture national consequences of statewide spending Expenditures on the two. pump stations in Kansas were evaluated in the context of the Kansas economy as a whole due to. the proximity of Clay and Butler counties to interstate highway corridors and to large. economically dominant metropolitan areas Therefore Kansas was modeled at the state level. with links to the rest of the United States Finally some construction spending would occur only. at unspecified locations nationally and thus a single U S model was used to estimate these. impacts A total of 19 models were used in the analysis. Table 4 10 3 presents a summary of construction activities that would occur in various locations. Construction contracts materials and support purchased in the United States would total. approximately 3 1 billion approximately 1 53 billion in construction plus 0 75 billion for. Final Supplemental Environmental Impact Statement Chapter 4. Keystone XL Project Environmental Consequences, material and 0 86 billion in support 4 Support includes such items as construction management. inspections and engineering Another 233 million would be spent on camps for workers in. remote locations of Montana South Dakota and northern Nebraska 5. Table 4 10 3 Selected Characteristics of Proposed Project Construction Activity. Occurring Within the United States,Characteristic Location. Rest of Total,South United United, Description Units Montana Dakota Nebraska Kansas States States. Construction cost million 494 539 464 35 NAa 1 532. Materials cost million NA NA NA NA 750 750,Support cost million 273 271 275 38 NA 857.
Construction workers number 4 000 3 500 2 700 200 NA 10 400. Construction period per,spread weeks 17 21 19 21 19 20 32 35 NA 17 35. Construction camps number 4 3 1 NA NA 8,Construction camp. development and,operationsb million NA NA NA NA NA 233. NA not applicable, Construction camp development and operations estimates are not presented by state because they include confidential business. information, Approximately 10 400 seasonal construction worker positions engaged for 4 to 8 month.
construction periods would be required to complete the proposed Project When expressed as. average annual jobs this equates to approximately 3 900 average annual jobs 3 900 over 1 year. of construction or 1 950 per year over 2 years 6 Thus if built over a 2 year period consistent. with the explanation provided above the proposed Project would likely generate 1 950. construction jobs per year, In response to comments and to provide greater clarity this Final Supplemental EIS has. standardized the presentation of jobs numbers as average annual jobs The definition of average. annual job above is the same as the definition of job provided on page 4 10 4 in the Draft. Supplemental EIS This Final Supplemental EIS has also replaced the undefined term average. annual employment that had been used in some places of the Draft Supplemental EIS with. average annual jobs The projected number of construction jobs is the same as was presented in. the Draft Supplemental EIS A worker is a person working full or part time in a job. More detailed estimates were used in the models but these are not included in this Final Supplemental EIS because. they include confidential business information, In addition to the 3 1 billion in spending in the United States Keystone would purchase some goods and materials. outside the United States This socioeconomics section of the Final Supplemental EIS focuses on the effects of. spending within the United States Section PC 2 14 Socioeconomics of the Theme Statements and Thematic. Responses in the Volumes V and VI of this Final Supplemental EIS Summary of Public Comments and Responses. to the Keystone XL Project Draft Environmental Impact Statement discusses the amount and sources of some of the. goods and materials from outside the United States. This is based on the total number of construction positions for all spreads multiplied by the average construction. period per spread in weeks divided by 52 weeks in a year 10 400 workers 19 5 average construction weeks 52.

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