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Fiscal Year 2013 i Table of 8 For additional information on economic contribution and economic impact analysis see Watson P J Wilson D Thilmany and S Winter 2007 Determining Economic Contributions and Impacts What is the difference and why
Fiscal Year 2013,Table of Contents,List of Tables ii. List of Figures ii,Executive Summary iii,Chapter 1 Introduction and Overview 1. Background 1,The FY 2013 Report 4, Overview of Outputs Produced and Economic Values 6. Chapter 2 Value Added Output and Employment Estimates 11. Introduction 11,Value Added and Economic Contributions 11. Chapter 3 State Level Estimates 20,Appendix 1 Technical Information 29. Contributors 40,Fiscal Year 2013,List of Tables, Table 1 1 Interior Managed Resources Production Quantities and Values FY 2008 FY2013 7. Table 2 1 Estimated Economic Contributions Resulting from Interior s Activities 16. Table 2 2 Summary of FY 2013 Economic Contributions by Bureau 17. Table 3 1 Estimated Value Added Supported by Interior Activities by Sector and State FY 2013. billions 22, Table 3 2 Estimated Total Output Supported by Interior Activities by Sector and State FY 2013. billions 24, Table 3 3 Estimated Total Jobs Supported by Interior Activities by Sector and State FY 2013 jobs 27. Table A1 1 BOEM and BSEE Administered Industry Economic Impact FY 2013 34. List of Figures, Figure 2 1 Youth Employment by Bureau Active Employees Age 15 25 FY 2013 14. Figure 3 1 Top Ten States for Value Added in All Sectors 2013 billions 20. Figure 3 2 Top Ten States for Value Added in the Recreation Sector 2013 billions 21. Figure 3 3 Top Ten States for Jobs Supported in All Sectors 26. Figure 3 4 Top Ten States for Jobs Supported in the Recreation Sector 26. Fiscal Year 2013,Executive Summary, The U S Department of the Interior DOI or Interior plays an integral role in protecting America s. natural resources and heritage honoring our cultures and tribal communities and supplying the energy. to power our future Interior s people programs and responsibilities impact Americans across all 50. States The Department is the steward of 20 percent of the Nation s lands managing national parks. national wildlife refuges and public lands and assisting States Tribes and others in the management of. natural and cultural resources Interior grants access to public lands and offshore areas for renewable. and conventional energy development covering roughly a quarter of the Nation s domestic supplies of. oil and natural gas while ensuring safety environmental protection and revenue collection for the. American public Interior oversees the protection and restoration of surface mined lands and is also the. largest supplier and manager of water in the 17 Western States assisting others with water. conservation and extending water supplies and providing hydropower resources to power much of the. 17 Western States The Department serves as Trustee to American Indians and Alaska Natives fulfilling. essential trust responsibilities to tribal communities Interior s Office of Insular Affairs OIA carries out. the department s responsibilities for U S affiliated Insular Areas which include the territories of Guam. American Samoa the U S Virgin Islands the Commonwealth of the Northern Mariana Islands and three. sovereign freely associated states FAS which includes the Federated States of Micronesia the Republic. of the Marshall Islands and the Republic of Palau The Department supports cutting edge research in. geology hydrology and biology informing resource management and community protection decisions. at Interior and across the world, This report represents the fifth in a series of annual economic reports initiated with a preliminary report. released by Interior in December 2009 In the on going effort to improve our data reporting and. estimation while minimizing administrative burden the FY 2013 report adopts a more streamlined. format to provide information on economic contributions and value added employment supported and. economic values associated with some of the outputs produced on Interior land 1 Comparing output and. value added value added more accurately captures the dollar value of Interior s resource management. activities, Although estimates of value added and economic contributions provide important information on the. effect of expenditures on outputs from Interior lands in local economies there are additional economic. values placed on DOI resources not captured in markets which would give a more complete accounting. of Interior s activities For example the complete accounting of impacts would include the value. individuals place on recreation above and beyond their expenditures contributions to U S energy. security preservation of natural habitats and endangered species and opportunities associated with. water use While there are established methods to value environmental benefits their estimation is. outside the scope of this report, More detailed treatments of topics from this report are available in the FY 2012 Economic Report. Executive Summary iii,Fiscal Year 2013, In FY 2013 production and activities on DOI lands were associated with about 200 billion in value. added and 360 billion in economic output supporting an estimated 2 million jobs Information related. to economic contributions value added employment and other economic values associated with. Interior s diverse activities is summarized below, Recreation In FY 2013 Interior s lands hosted an estimated 407 million visits 2 The net. economic value of a visit to Interior lands varies depending on the activity For FY 2013 value. added provided by visitation to Interior sites was estimated to be 25 billion economic output. was estimated to be 41 billion and about 355 000 jobs were supported. Renewable Energy In FY 2013 Interior lands and facilities produced 40 million MWh of. hydropower Also in FY 2013 Interior approved the installation of 826 MW of wind capacity and. 1 000 MW of solar power projects on public lands Renewable energy activities were estimated. to contribute about 5 billion in output and support over 20 000 jobs In aggregate generating. electricity with renewable energy reduces the amount of electricity supplied by fossil fuel plants. along with the associated emissions and reduces our Nation s dependence on foreign oil. Market values of power typically do not reflect the adverse environmental and health costs to. society associated with fossil fuel pollution or the corresponding benefits to society from. substituting cleaner sources of energy, Conservation The value added economic contributions and employment supported by DOI s. conservation related activities are difficult to measure separately because conservation could be. a component of recreation ecosystem restoration water management and even some mineral. development activities Many benefits of nature conservation accruing to households. communities and economies are not defined with a set of consistent metrics nor are they. bought and sold in markets This creates challenges in the valuation of these goods and services. Restoration Every Interior bureau engages in some form of restoration from physical structures. to habitat and cultural resources For example the Office of Surface Mining Reclamation and. Enforcement OSMRE hosts the Abandoned Mine Land Inventory System e AMLIS an. inventory of land and water impacted by past mining primarily coal mining containing. information on the location type and extent of AML impacts as well as information on the cost. associated with the mitigation of those problems Additionally In May 2013 BLM published. Abandoned Mine Lands A New Legacy which covers the successes of its AML program between. 2009 2011 The DOI Restoration Program works across bureaus to ensure that responsible. parties not taxpayers bear the cost of restoring injured resources following a release of oil or. other hazardous substances at hundreds of sites around the Nation where over 122 000 acres. and more than 330 miles of stream and shoreline were enhanced restored or. managed protected in 2013 Restoration projects have significant economic impacts which vary. in scope depending on the extent and nature of the activities undertaken. Fossil Fuel Energy In FY 2013 Interior managed lands and waters produced 652 million barrels. of crude oil 4 trillion cubic feet of natural gas and 420 million tons of coal Some average prices. in FY 2013 included 101 bbl for oil 3 72 mcf of natural gas and 11 per ton of Powder River. Basin coal Oil gas and coal produced from Interior lands were estimated to provide value. added of 121 billion estimated economic output contribution of 220 billion and an estimated. 1 million jobs External costs are associated with the development of oil gas and coal produced. from Interior lands and with the production and the use of these resources Market prices do. not fully reflect these costs Various regulations and other requirements designed to minimize. adverse environmental impacts internalize some but not all of these external costs. This value includes the total visits to Bureau of Reclamation facilities in 2012 due to data availability. iv Executive Summary,Fiscal Year 2013, Non fuel Minerals In FY 2013 Interior lands produced a wide variety of minerals For example. it is estimated that about 2 4 million ounces of gold were produced from Federal lands in. Nevada the average price of gold in 2013 was 1 400 per ounce Non fuel mineral production. was associated with an estimated value added of 7 9 billion estimated economic output of. 12 5 billion and estimated employment supported about 45 900 jobs While minerals are. generally traded in competitive markets though some markets may be localized or thin prices. may not incorporate the external costs associated with mining Moreover the Federal leasing. system completely offset these costs which are primarily associated with the environmental. impacts of mining Various regulations and other requirements designed to minimize adverse. environmental impacts help to internalize some of these external costs. Forage and Grazing In FY 2013 Interior lands produced nearly 9 million animal unit months. AUMs of forage Prices for forage vary widely from 1 35 per AUM fee on BLM managed lands. to 17 on State and private grazing lands This production is associated with 1 5 billion in. economic output and supported about 18 000 jobs Value added figures were not readily. available for forage and grazing Forage prices do not fully reflect various ecosystem service. values provided by rangelands, Timber In FY 2013 about 573 000 mbf one thousand board feet of sawtimber was harvested. on BLM and tribal lands approximately 40 from BLM and 60 from BIA This timber harvest. was associated with about 460 million in value added provided 1 2 billion in economic. output and supported about 5 200 jobs Market prices do not fully reflect changes to various. ecosystem service values provided by forest lands Interior forestry lands provide various other. products besides sawtimber including biomass fuelwood poles posts and a variety of other. products e g seeds Christmas trees and mushrooms The economic contributions associated. with some of these products were accounted for in this report while others could not be. explicitly analyzed, Water Interior stores and delivers water for irrigation municipal and industrial M I and. other uses The value of water varies widely according to location type of use and climatic. conditions Interior s irrigation BOR and BIA and M I water activities are associated with 32. billion in value added about 60 billion in economic output and supported an estimated. 378 000 jobs Interior also delivers water to support in stream flows wildlife refuges and other. uses that are difficult to value fully, Scientific Data Investments in research and development promote economic growth and. innovation ensure American competitiveness in a global marketplace and are critical to. achieving Interior s mission Investments in Interior s research and development will improve. U S strategic mineral supplies water use and availability and natural hazard preparedness. Sustainable stewardship of natural resources requires strong investments in research and. development in the natural sciences Scientific knowledge is not typically valued in markets and. hence is underprovided by the private sector, Grants Payments Grant and payment programs administered by Interior provided 6 2 billion. in value added economic contributions of 8 3 billion and supported employment of 70 000. jobs 3 Within these totals, o Indian Affairs grants to support tribal governments provided value added of 0 8 billion. economic contributions of 1 2 billion and supported about 10 000 jobs. o Grants and payments to Insular areas provided GDP impact of 0 9 billion and. supported employment of about 26 000 jobs, It is possible that grants and payments support some of the economic activity reported for other sectors. throughout this report We have not attempted to correct for this source of potential double counting. Executive Summary v,Fiscal Year 2013,This page is intentionally blank. vi Executive Summary,Fiscal Year 2013,Chapter 1 Introduction and Overview. Background,The U S Department of the Interior s people and. Renewable Energy,programs impact all Americans Interior protects. America s natural resources and heritage honors our BLM s Western Solar Plan includes 19. cultures and tribal communities and supplies the Solar Energy Zones on over 285 000. energy to power our future The Department is the acres of public lands The area could. steward of 20 percent of the Nation s lands Interior support up to 27 000 megawatts of. manages national parks national wildlife refuges and solar energy generation enough to. power 8 million homes, public lands and assists States Tribes and others in the. management of natural and cultural resources Interior To date the BLM has authorized over. provides access to public lands and offshore areas for 100 wind energy testing sites and 39. renewable and conventional energy development wind energy projects with over 5 000. covering roughly a quarter of the Nation s domestic megawatts of capacity enough to. supplies of oil and natural gas ensuring safety supply the power needs of over 1 5. environmental protection and revenue collection for million homes In FY 2013 BLM s. solar wind and geothermal activities, the American public Interior manages the protection. supported 2 3 billion in output and, and restoration of surface mined lands The nearly 12 000 jobs. Department is the largest supplier and manager of, water in the 17 Western States assists others with BOEM is overseeing wind energy. water conservation and extending water supplies and development offshore of both coasts. provides hydropower resources to power much of the In 2014 BOEM approved a 30 MW. floating turbine project in Oregon, 17 Western States The Department serves as Trustee. BOEM has issued wind energy leases,to American Indians and Alaska Natives Interior s. for Massachusetts Rhode Island and, Office of Insular Affairs OIA carries out the Virginia with more planned for. department s responsibilities for U S affiliated Insular Massachusetts Maryland and New. Areas which include the territories of Guam American Jersey in 2014. Samoa the U S Virgin Islands the Commonwealth of,the Northern Mariana Islands and three sovereign. freely associated states FAS which includes the, Federated States of Micronesia the Republic of the Marshall Islands and the Republic of Palau The. Department provides reliable scientific information to advance knowledge in the Earth Sciences. minimize loss of life and property from natural disasters manage water biological energy and mineral. resources and enhance and protect our quality of life. Chapter 1 Introduction and Overview 1,Fiscal Year 2013. Recent data continue to indicate a strengthening,economic recovery a stronger outlook for. consumption and improved figures on net Land Acquisition. international trade driven largely by falling oil, imports 4 Labor markets continue to show signs Investments in conservation through land. of strengthening although substantial slack still acquisitions and grant programs provides. benefits to society in the form of species and,exists 5 The goods and services provided by the. habitat protection maintenance of working, lands that are managed by DOI helped to landscapes and the provision of ecosystem. support this economic recovery These goods services such as clean water timber fisheries. and services include outputs bought and sold in habitat and carbon sequestration The. markets such as oil and gas as well as measurement of benefits from conservation. ecosystem goods and services that are not investments can provide important. typically bought and sold in markets such as information to policymakers for future. decisions Economic techniques can,clean water recreation habitat for fish and. represent the benefits and costs of, wildlife Ecosystems and their service flows conservation investments in monetary terms. provide a form of wealth natural capital that enabling comparison across locations or. humans depend on for a range of important projects in a common metric Non monetary. benefits Unlike manufactured capital and terms might include physical measures of. human capital skills options for creating new benefits e g habitat acres conserved. Either type of measure of benefit can be,natural capital are limited though degraded or. used to calculate a return on investment, damaged ecosystems can sometimes be allowing decision makers to evaluate target. restored Further manufactured capital may be and prioritize land acquisition decisions or. an imperfect substitute for natural capital other conservation activities. Between 2001 and 2011 around 15 to 20,Natural resources that are bought and sold in. percent of annual DOI land acquisition, markets e g oil minerals timber forage fish funding was used to purchase easements In. etc contribute to a wide range of intermediate FY 2013 DOI acquired a total of 49 000 acres. and final products In addition people value the of which 21 000 were fee acres and 28 000. environment directly even where there is no were easement acres. market for environmental amenities,Furthermore people may be unaware of the full. Real GDP increased 1 9 percent in 2013 that is from the 2012 annual level to the 2013 annual level compared. with an increase of 2 8 percent in 2012 http www bea gov newsreleases national gdp gdpnewsrelease htm. Total nonfarm payroll employment rose by 175 000 in February 2014 Job growth averaged 189 000 per month. over the prior 12 months http www bls gov news release empsit nr0 htm However the unemployment rate. remains above estimates of the natural or equilibrium rate of unemployment GDP or Gross Domestic Product is a. commonly used measure of economic performance and measures the value of the goods and services produced by. an economy Real measures reflect quantities independent of prices allowing comparison of measures over. periods in which prices have changed GDP represents the market value of all final goods and services produced in. a country i e domestic value added which can be shown to be identical to the sum of payments to labor i e. salaries wages and bonuses plus payments to capital i e production and replacement of existing capital GDP is. an incomplete measure of wellbeing or welfare, See Bureau of Labor Statistics http www bls gov news release empsit nr0 htm. 2 Chapter 1 Introduction and Overview,Fiscal Year 2013. benefit they receive from these resources, The ecosystem services that are provided by Interior. managed lands land acquisition spending is discussed in. Conservation Banking, more detail in the box to the right are typically provided. free of charge and people who benefit from ecosystem Federal conservation banks are. permanently protected lands, services may not be directly involved in determining the. managed by FWS for species that are, supply of services This is known as an externality For. endangered threatened or, example timber harvests can be managed to minimize otherwise at risk These banks. soil that enters nearby streams This preserves water facilitate the establishment of. quality and stream habitat downstream of the harvest markets for goods not readily sold in. area Numerous potential solutions have been proposed markets FWS approves a specified. for internalizing such externalities including payments number of credits for the bank owner. in exchange for permanently, for ecosystem services tradable development rights. protecting and managing habitat for, taxes on activities that result in damages to services and the endangered species in question. direct regulations,As of March 2013 FWS had approved. Some ecosystem services are traded in markets e g 105 conservation banks in 10 States. commercial fisheries timber etc and valuation using and Saipan California has 80 Federal. market prices is relatively straightforward But many banks other States with multiple. ecosystem services are public goods that are not banks include Florida 8 Texas 6. Utah 3 and Oregon 2 Of the 105, traded in markets without market prices there is no. banks 12 have sold all of their, ready measure of value for these services credits including 11 in California and. The value of some nonmarket ecosystem services has 1 in Maryland These banks are now. engaged in managing the habitat,been well studied For example there are numerous. associated with the credits they sold,empirical studies to assess the value of outdoor. There were 10 additional, recreation and numerous applications of economic conservation banks pending approval. analysis being used to assess the value of various as of March 2013. environmental amenities access to open space access. to water resources local air quality One approach, taken in these studies is based on people s revealed. preferences A second type of valuation approach is known as stated preference estimation this. includes survey techniques to estimate people s valuation of an amenity The strengths and weaknesses. revealed and stated preference methods are well understood However practical difficulties in assessing. value in a manner that will be viewed as objective authoritative and accurate is difficult for some. ecosystem services such as those services associated with cultural resources This difficulty may support. the argument for the simple provision of information about potential trade offs among services without. attempting to measure all services in the same metric. Chapter 1 Introduction and Overview 3,Fiscal Year 2013. Basic scientific knowledge is often not valued in,markets and hence is underprovided by the private. sector Beyond helping Interior bureaus achieve Science to Support Resource. their missions scientific information such as that Management. produced by USGS is an input to production,processes and decisions that help promote. A Bureau of Safety and Environmental,economic growth and innovation and ensure. Enforcement BSEE funded research project,American competitiveness in a global market. evaluated the use of Real time Monitoring,Interior s bureaus are engaged in a variety of. RTM on the outer continental shelf OCS to,activities designed to provide basic research. obtain an independent assessment of the, scientific and technical information and to transfer. various types of RTM technology available for,technology to decision makers in the public and. offshore oil and gas operations Focusing on,private sectors The information produced by. drilling and production technologies the, Interior is a critical input that helps support private. assessment identified the automation,markets the production processes of private. systems that are available or being,entities and many public sector decisions. developed the potential such systems have,to increase offshore drilling safety and any. The FY 2013 Report, This report represents the fifth in a series of annual negative impacts they may have on. reports initiated with a preliminary report released operations Though many of the global. by Interior in December 2009 In the on going effort operators conducting activities on the OCS. to improve our data reporting and estimation while today have various types of RTM in place. minimizing administrative burden the FY 2013 their use is in general not standardized nor. report adopts a more streamlined format 6 The required by the agency Costs to install. remainder of this chapter presents an overview of implement staff and maintain RTM for a. the key outputs produced by the Department The company are significant however the. chapter also provides a summary of Interior s potential for increased operational safety. economic contributions value added employment with this technology appears to be significant. supported and economic values associated with See http www bsee gov Research and. some of the outputs Training Technology Assessment and. Research Project 707 for additional, The analysis in this report reflects the effects of the information. 2013 Sequestration The Federal Government,experienced automatic spending cuts in particular. categories of outlays that were initially set to begin. on January 1 2013 pursuant to the Budget Control Act of 2011 BCA These cuts were postponed by. two months by the American Taxpayer Relief Act of 2012 until March 1 2013 when this law went into. Approximately 828 million was sequestered 617 million in discretionary appropriations and 211. million in direct spending The effects of the sequestration are difficult to quantify For example Interior. More detailed treatments of topics from this report are available in the FY 2012 Economic Report. 4 Chapter 1 Introduction and Overview,Fiscal Year 2013. projected that approximately 300 fewer onshore oil and. gas leases were issued in Western States including. Wyoming Utah Colorado and New Mexico in FY 2013 Hurricane Sandy. Delayed leases result in a lost opportunity to collect Recovery Economic. additional revenues in FY 2013 while also causing, prospective production and resulting benefits from these Impacts of Recovery. leases to be pushed further into the future The exact Spending. impact of these delays on the timing of operator decisions. to drill and produce on their leases is difficult to estimate. Hurricane Sandy devastated the, Delayed Mineral Leasing Act payments to States and. eastern U S in October 2012 One, counties of approximately 101 million were eventually. estimate of the value of the,disbursed at the beginning of FY 2014. resources property and assets,affected by the storm is the cost to. This report presents information on the physical and. replace what was lost Interior s, biological outputs produced by Interior and on the. efforts aimed at rebuilding natural,economic value added output and employment. assets include marsh wetland and,supported by Interior Gross output or economic. habitat restoration, contributions represents the value of industry production. value added nets out the cost of intermediate inputs i e. As of October 2013 Interior had, goods and services purchased from other industries or. more than 71 million in cumulative, imported that are used as inputs to produce a good or. outlays out of a total obligation of,service and is a more appropriate concept when. 252 million These outlays went, considering Interior s contributions to the nation s gross. toward projects in construction, domestic product GDP Of the measures reported here. mitigation and preservation The, value added most accurately captures the dollar value of. nearly 32 million directed toward, Interior managed resources in the U S economy Value. restoration type projects typically at, added estimates are not available on a comprehensive. refuges or units of the NPS, basis for all Interior resources this information is provided. supported activities with value added, where such values are readily available More information. of over 40 million, on these concepts is included in the technical appendix. Economic contributions of an event or policy may be measured as jobs labor income value added. contribution to GDP or output though these are incomplete measures of economic value 7. Economic impacts measure how programs expenditures and investments translate to economic. growth employment and income Economic value is defined in terms of relative value and is equal to. the amount an individual or society is willing to give up in other goods and services in order to obtain a. good service or state of the world More specifically the economic value of a resource is the amount. Contributions of an event or policy measure how economic activity cycles through an economy as it currently. exists Contributions do not account for any activity that might occur even without the event or policy Impacts are. more narrowly defined as net changes to an economy that would not be seen without the event or policy. Economic benefits refer to total net values which include both market and nonmarket values. Chapter 1 Introduction and Overview 5,Fiscal Year 2013. that society is willing to pay for the resource not how much they actually pay for the resource This. report covers economic contributions and not economic values. While this report relied on generally similar methodologies to estimate value added output and. employment the results are not directly comparable to those of earlier reports due to changes in some. of the underlying modeling Additional information is provided in Appendix 1. Overview of Outputs Produced and Economic Values, Table 1 1 summarizes the quantities of the key physical and biological outputs produced by Interior in FY. 2013 The table also provides information where such information is readily available on the unit. economic values for each commodity We report a range of economic values associated with each. resource and we report total production for the year The table does not associate production with. individual unit prices so we do not report a total value for the annual production. 6 Chapter 1 Introduction and Overview,Fiscal Year 2013. Table 1 1 Interior Managed Resources Production Quantities and Values FY 2008 FY2013. Commodity a FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013. Recreation b Visits to DoI sites million n a 415 439 434 417 407. Economic value per visit 2013 43 52, Crude Oil c Federal production millions of 575 657 736 649 626 652. WTI Average price per bbl 2013 107 65 67 15 84 76 98 08 95 26 100 64. Natural Gas Federal production trillions of cubic 5 8 5 7 5 4 4 9 4 5 4 1. Avg wellhead price per thousand 8 61 3 98 4 78 4 08 2 69 3 72. cubic feet 2013, Coal e Federal production millions of tons 509 488 478 470 460 420. Avg price per short ton 11 49 12 33 12 87 14 12 9 13 10 72. subbituminous coal 2013, Hardrock Estimated gold production on 100 190 95 890 99 330 100 620 76 223 n a. Minerals Gold f Federal lands in NV kg, Avg gold price per ounce Calendar 900 1 000 1 200 1 600 1 700 1 400. Forage g AUMs permitted millions 8 6 8 6 8 7 9 1 8 9 8 5. Price per AUM 2013 1 35 17 80, Timber h BLM commercial sawtimber 162 902 190 504 183 558 218 467 208 943 236 889. harvested mbf, BIA harvested timber mbf 530 972 426 250 396 532 359 697 333 209 336 320. Total for BLM and BIA mbf 693 874 616 754 580 090 578 164 542 152 573 209. Average Western OR BLM received 178 12 153 39 92 57 92 61 119 31 126 30. price per mbf 2013,Table continues,Electricity,Generation.