FOR RELEASE: August 28, 2014
AAEF presents new data to Clean Power Plan stakeholders on Thursday
Little Rock, AR – Total energy efficiency spending in Arkansas is more than $1.5 billion resulting in more than 12,500 high-paying jobs, according to data released Thursday by the Arkansas Advanced Energy Foundation (AAEF) during the latest meeting of Arkansas stakeholders planning the state’s response to the EPA’s Clean Power Plan.
AAEF was one of six presenters today that gave varying perspectives on the economic impact in Arkansas of the EPA guidelines on reduced carbon emissions from existing power plants. AAEF’s full report, “The Economic Impact of Energy Efficiency Programs in Arkansas”, is due for release next week. Its author, local economist James Metzger, CEO of HISTECON Associates, appeared before stakeholders today to give preliminary findings that demonstrate the net positive economic impact of energy efficiency policies in Arkansas.
AAEF Policy Director Ken Smith introduced Metzger with a brief summary of a report by the American Council for an Energy Efficient Economy showing that Arkansas can achieve more than 40 percent of its carbon reduction target through energy efficiency measures.
The study reports the first-ever attempt to identify and contact the hundreds of individual companies that work as energy efficiency (EE) contractors throughout the state. Based on survey data, the study estimates that 9,000 jobs and $1 billion in sales have been generated by companies doing business in the EE sector. In addition, the indirect impact of this work is another 3,500 jobs in related sectors and output of more than $550 million. Total impact of energy efficiency spending in the state comes to $1.5 billion and 12,500 jobs.
Importantly, the AAEF study shows that EERS programs have boosted sales for all Arkansas energy efficiency contractors by 44% during and through the end of 2013. This figure is much higher for smaller, Main Street companies which have experienced an 86% sales growth as a direct result of utility EE programs.
Mapping the location of the contractors demonstrated both the large number of contractors (675 businesses both in-state and out-of-state) and the wide distribution of their locations.
“We already knew that energy efficiency programs had the potential of having a positive effect on the overall economy in Arkansas,” Metzger said. “With this report, we are able to document for the first time that the potential is already being realized and even more positive impacts have taken hold in Arkansas.”
In addition, the benefits from the EERS program continue to produce increased energy savings for the state The annual reports filed at the APSC by Arkansas utilities document that the EERS program is having tangible results on energy demand in communities throughout the state, which in turn means that family and firm budgets will have more to spend on other goods and services, and these expenditures will help local economies grow faster than before.
Today, AAEF distributed an executive summary of the report at the Arkansas stakeholder meeting, and the final report is scheduled for release on September 3, 2014. At that time, the full report will be available on the AAEF website.
AAEF’s presentation, along with the other five presentations can be found on AEDQ’s website. http://www.adeq.state.ar.us/air/branch_planning/carbon_pollution.htm
Arkansas Advanced Energy Association is a business group dedicated to growing Arkansas’s economy by expanding our energy workforce and manufacturing base through the increased development, manufacture, and utilization of advanced energy technologies. www.arkansasadvancedenergy.com
The Arkansas Advanced Energy Foundation is the educational affiliate of the AAEA. The Foundation promotes greater public understanding of advanced energy in Arkansas through research, public education programs and economic and workforce development. The Foundation is dedicated to informing the energy policy debate with well-researched, fact-based data on the advanced energy economy in Arkansas and by providing a public forum where state leaders can address Arkansas’s energy challenges for the future. www.arkansasadvancedenergyfoundation.org
Report Shows Global Economic Impacts of Advanced Energy
A report released in January 2013 by Advanced Energy Economy (AEE) shows that advanced energy was a $1.1 trillion global market in 2011, larger than pharmaceutical manufacturing worldwide. Read the full report here: http://arkansasadvancedenergyfoundation.org/files/dmfile/AEEIEconomicImpactofAdvancedEnergy-Final.pdf
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