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|A W Sp: How the U.S. Wind Industry is Rapidly Growing Our Local Economies

A W Sp: How the U.S. Wind Industry

is Rapidly Growing Our Local Economies

Author

Hannah Druckenmiller

Project mAnAger

Cai Steger

SEPTEMBER 2012

IP: 12-09-ANRDCISSUE PAPER


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About NRDC

NRDC (Natural Resources Deense Council) is a national nonprot environmental organization with more than 1.3 million

members and online activists. Since 1970, our lawyers, scientists, and other environmental specialists have worked to

protect the worlds natural resources, public health, and the environment. NRDC has oces in New York City, Washington,D.C., Los Angeles, San Francisco, Chicago, Livingston, and Beijing. Visit us at www.nrdc.org.

Acknowledgments

The author wishes to acknowledge the support o the MAP Fellowship Program that made this report possible. Since 2001,

the MAP Fellowship Program has supported the eorts o non-governmental organizations dedicated to developing a more

sustainable energy uture through the MAP Sustainable Energy Fellowship program. The program provides students and

recent graduates o Stanord University with the opportunity to promote awareness o environmental issues resulting rom

our past and present energy use.

Thank you to Cai Steger or managing and supporting the production o this report. Without his guidance and leadership,

this project would not have been possible. Thanks to Christina Angelides and Bob Keee or reviewing and contributing to

many aspects o the report. Many thanks to Carlita Salazar or helping develop and release the report.

The author also wishes to thank Judge Gary Thompson, Mary Kramer, and the members o Sherman County, Livingston

County, Cedar Rapids, Iowa, and Canton, Ohio, or sharing their stories with us. Without the rst-hand accounts o these

residents, we would not have been able to understand the extent o the social and economic benets that wind energy

generates in communities across America.

NRDC Director of Communications: Phil Gutis

NRDC Deputy Director of Communications: Lisa Goffredi

NRDC Policy Publications Director: Alex Kennaugh

NRDC Publications Editor: Carlita Salazar

Design and Production: Tanja Bos

Natural Resources Deense Council 2012

Cvr p: Man Bandn r NRDC


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INTRODUCTION

Over the last two decades, the U.S. wind industry has grown dramatically and

is providing communities across America with tremendous benets. More

than 50,000 megawatts o wind powerthe power equivalent o thirteenHoover Damsare installed in the United States. Meanwhile, American companies

such as General Electric dominate the global wind turbine industry, and in almost

every state are expanding to meet the increasing global demand or wind power. This

report shows how wind power is rebuilding individual communities in America, while

creating much-needed jobs, reducing pollution that harms our children's health, and

cutting our dependence on dirty and limited ossil uels.

companies that manuacture parts or the wind industry.In Cedar Rapids, Iowa, two wind companies helped create

a renewable energy technician program at Kirkwood

Community College that is now training workers or new,

good-paying wind industry jobs. And, in Canton, Ohio,

a wind company built the rst wind energy research and

development center o its kind.

Lessons Learned rom Wind-Boom Communities

Across each o these case studies, there are a number o

commonalities and overarching themes. Hence, while a

limited sample size, several lessons can be taken rom these

eorts and serve as useul guidance to communities eager toparticipate in the growing wind industry:

n Distributing the economic benefts o wind energy can

ensure that all community members share in the wind

wealth.While the wind industry benets land owners and

workers most directly, in both Sherman and Livingston

Counties, a wide range o community members have

prospered rom wind arm development. Since the wind

arms have moved into town, small businesses have seen

increased activity, schools have secured more unding

or students, and armers have ound new revenues rom

turbines planted in their elds. In addition, a compensation

program in Sherman County directly distributes therevenue rom wind arms to each household, awarding

every resident an annual check or $590.

n Reinvesting new revenue rom taxes and special ees

on wind arms in the community can ensure long-

lasting benefts o wind arm development and advance

other priorities critical to communities. In Sherman

and Livingston Counties, a substantial portion o the

revenue rom wind arms has gone to local school

systems, allowing them to buy new equipment, hire

additional teachers, and expand elective programs.

Americans like wind power and want our country to supporteven greater deployment o this clean, renewable resource.

In some surveys, nine out o 10 voters say they support

eorts to increase wind-power generation, and two-thirds o

Americans say they think clean energy technologies, such as

wind power, will be an important source o economic growth

in the uture.1

Surprisingly, while the benets o a well-sited wind project

or expanding wind manuacturer can be signicantrom

new jobs and local worker training programs to increased

city tax revenues and more school undingthey are oten

overlooked or underestimated. This report seeks to rectiy

that. In an attempt to show ully the real-world benets othe wind industry, this report ocuses on our case studies in

Illinois, Iowa, Ohio, and Oregon, drawing rom accounts o

the actual residents rom those communities.

Reaping the Community Benefts o Wind Power

Sherman County, Oregon, has seen huge increases in

revenues rom local wind arms. Beore the wind energy

industry came to town, this rural community had ew

employment opportunities and a small tax base. As almost

any Sherman County resident will tell you, since installing

a swath o power-producing wind turbines, the county has

reaped impressive benets including increases in per capitaincome and the local tax base.

Residents o Livingston County, Illinois, tell a similar story

o economic development. There, the wind industry has

boosted the local tax base, created new jobs, and provided

lease payments to local landowners. Wind developers

in Livingston County also pay ees that are dedicated to

spurring local economic development and helping the

countys small businesses.

Other towns are reaping the new economic benets rom


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In addition, Livingston County has dedicated the $6

million ee collected on Streator Cayuga Ridge South

Wind Farm to spurring economic development in

the region. With many city, county, and state budgets

currently constrained, these new revenue streams can

help communities maintain and advance other criticalpriorities. Such investments in the uture also ensure that

the economic boosts to these rural communities will last

or years to come.

n The extent o the wind energy supply chain creates

potential or clustering in communities participating in

the wind industry.Where there is wind arm development,

a range o businessesincluding management rms,

construction companies, and uel suppliersare needed

to support the industry. Moreover, communities involved

in wind energy manuacturing can become hubs or

renewable energy. For instance, in Canton, Ohio, the

success o one large wind company has created new

opportunities or local businesses to join the wind energy

supply chain. It also resulted in the creation o a Wind

Energy Research and Development Center, generating

hundreds o American manuacturing jobs and making

the city a center or technological innovation.

n Training programs developed in partnership with

the wind industry beneft local students and wind

companies alike.Wind arms create hundreds o

jobs in manuacturing, construction, and operation.

Communities can help ensure these jobs stay local by

creating wind energy technician training programs.

Cedar Rapids, Iowas new Energy Production and

Distribution program at Kirkwood Community College,or instance, trains both seasoned manuacturing

hands and young students to participate in the quickly

growing wind manuacturing sector. In Sherman County,

Columbia Gorge Community Colleges renewable energy

technician program teaches local residents to be wind

turbine operators, creating a new base o skilled labor in

the rural community. These training programs benet

wind companies by giving them access to skilled workers

trained on the very equipment they will manuacture

and operate, and communities by enhancing the existing

skills o local workers and providing students with new

training and job opportunities.

Extending Important Incentives to Build on

Wind-Powered Returns to Communities

It is important to point out that smart policies and incentives

have played a critical role in producing all the gains that

come with wind power. We need to ensure that these means

to advancing the wind industry are preserved and expanded.

Unortunately, critical ederal incentives, such as the

Production Tax Credit (PTC), which provides a tax credit to

wind projects or the clean renewable power they generate, is

scheduled to expire at the end o this year. Across the nation,

the PTC has played a valuable role in leveling the playingeld or wind power and growing an industry that now

provides jobs to 75,000 Americans. The PTC has encouraged

innovation and better wind technologies that have led to a 90

percent reduction in the cost o wind power since 1980.

Extending the PTC could create another 17,000 new wind-

energy jobs; letting it expire could cost 37,000 Americans

their jobs. In previous years when the PTC expired, there

have been massive drops in wind installations. In 2000, or

instance, when Congress declined to extend the PTC, new

wind installations ell 93 percent.2

The communities o Sherman and Livingston Counties,

Canton, and Cedar Rapids represent powerul cornerstoneso a growing American manuacturing and innovation

resurgencewhere we learn how to most eectively produce

clean, renewable energy like wind power and use it to help

our citizens, our schools, our workers, and our children.

Only by insisting that our lawmakers continue to support

renewable power with important programs like the PTC can

we help ensure that the wind industryand the communities

and residents that benet rom itkeep growing.

wisteChColleges


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ShermAn county, oregon

When I was young, they used to have a

machine at the air. It had a big fywheel

youd turn by hand, and you gave the guy

a quarter. Then you put a penny in it, andit smashed that penny out. I look out there

and I see those wind turbine blades turning

and I think o that big wheel. Every time it

goes around, it just chunks out a coin.3

John Hilderbrand, wind and wheat farmer,

Sherman County, OR

Sherman County, a rural region in northern Oregon, got its

rst wind arm in 2002. Over the last decade, 11 more wind

arms have been built, bringing the county a host o welcomeeconomic and social changes. With a population o 1,735,

Sherman County used to be dependent on one crop: wheat.

However, its breezy conditions and proximity to power

transmission lines connecting to Caliornia have made the

region an ideal location or a second crop: wind energy.

Sharing the Wind Prosperity Among

the Community and its Citizens

Thanks to the booming wind energy industry, the county has

benetted rom more than $17.5 million in new tax revenuesand ees on more than 1,000 megawatts (MW) o new wind

capacity. Annual revenues collected by the government rom

wind arms have jumped rom $315,000 in 2002 to $10 million

in 2010.4

This new stream o revenue has led to long-lasting benets

across the community. Property leases to wind companies

have helped many landowners remain nancially solvent; the

hal-acre required or each turbine, which previously yielded

approximately $125 in wheat, now brings in additional

revenue rom windbetween $5,500 and $7,800 in annual

royalty payments.5

Furthermore, the construction and operation o the windarms played a large role in decreasing the unemployment

rate rom 10.2 percent in 2001 to 4.9 percent in 2007.6 As

arming technology advances, employment opportunities

in agricultural communities can be lost, but wind arms

oer new opportunities that did not exist previously. In

Sherman County,more than 500 jobs were created onsite

during construction, and 80 long-term jobs remain during

operation, a signicant number in this community.7 The wind

industry is now Sherman Countys largest employer.

It is not only the landowners and new hires who benet;

many small businesses are kept alive by increased spending

when wind arms move into town. In Sherman, motels,restaurants, and gas stations all see increased business rom

construction workers, wind technicians, and tourists hoping

to get a glimpse o the giant turbines. In an interview with

Northwest Public Radio, Kathy Neihart, owner o the Lean-to

Cae, reported that business has doubled in recent years, and

the increased activity has helped pull her restaurant out o debt.8

Only a decade ago, Sherman County was one o the poorest

sections o Oregon. In 2001, the per capita income in the

county was $18,254 compared to $29,250 statewide. With

agriculture as the primary source o income, residents were

especially vulnerable to drought and alling wheat prices,

and recognized the need to diversiy the countys economy.In just 10 years,the wind industry helped Sherman County

boast the highest per capita income in the state. In 2011,

the county averaged $52,530 compared to a statewide

average o $36,317.9 In act, Sherman County Judge Gary

Thompson reported that wind was the number-one source o

income in 2012. While the price o wheat has increased, the

considerable income gains have much to do with the wind

arms scattered across the north.10

CASE STUDIES

Wind Farm Development Benefts

Sherman County, OR

n $17.5 mn n prpry ax and

n Anna paymn p $7,800 pr rbn andnr

n Pr capa ncm ncra, rm $18,354 n 2001 $52,530 n

2011, bcm n a

n $1.8 mn ran c drc n 2011 nd n

qpmn, ca, and acr

n Fv-ndrd n cnrcn jb

n ey n-rm jb n pran

n incrad cnmc acvy p kp ma bn av

n Anna cck $590 a rdn

n Rnab nry cncan rann prram a Cmba gr

Cmmny C


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Ensuring Long-Term Prosperity throughCitizen Rebates, Better Schools, and Well-

Trained Workers

Even more impressive is the eect property taxes and

licensing ees have had on Sherman Countys local

government revenue stream. Property taxes have nearly

tripled since the wind arms moved into town, increasing

rom $2.35 million in 2001 to $6.1 million in 2011, enhancing

the stability o the local tax base over the next ew decades

(see gures 1 and 2).11 The stream o revenue is being shared

among all Sherman County residents. In act, each year the

county issues a $590 check to each head o household, a total

o $416,540 that goes directly back to local residents.12 These

payments are modeled ater Alaskas resident compensation

program, and ensure that all members o the community

benet rom wind arm development, even i they do not

directly lease their land to the wind companies.

Additional revenue is unneled into public development

projects and the local school system. Each o the countys

our townsGrass Valley, Moro, Ruus, and Wascoreceives

$100,000 annually. The county has already constructed a new

library, school, sewage treatment system, and two new cityhalls. Judge Thompson noted that the additional revenue has

been especially helpul to the school district, explaining, In

Oregon, schools are paid per capita. What wind arms have

done is given the county an opportunity to give grants; last

year alone the county gave $1.8 million. While other school

districts are being orced to cut back, Sherman County has

been able to continue buying new equipment and paying

teachers salaries.13 In act,the school district receives

around 20 percent o the wind arm revenue each year, and

has purchased new computers, musical instruments, and

robotics equipment, as well as staed electives.14These

improvements to public inrastructure and education, as

well as increased economic activity, ensure that wind energy

projects are bringing sustainable valueto Sherman County.

In addition, wind arm development has created the

opportunity or skilled labor in a small rural community.

When Dr. Susan Wole, chie academic ocer at Columbia

Gorge Community College (CGCC), saw truckloads o wind

turbine components being transported into Sherman County

she recognized the need or a workorce to operate the new

arms.15 Through collaboration with wind energy partners,


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the college created a renewable energy technician program

with oundations in mechanics, electronics, and hydraulics.

Early on, the wind companies helped the program get o the

ground by providing a ramework or curriculum, scholarshipunding, classroom training, and equipment. In the programs

rst year, 22 o the 24 students who completed the program

immediately ound jobs paying more than $20 per hour.16

The program helps ensure the wind technician jobs in

Sherman County stay local; however, or the rst time

since its conception, CGCCs renewable energy technician

programs all class is not at ull capacity. Mary Kramer,

director o career and technical education at CGCC,

speculates that enrollment has dropped because o

uncertainty in the industry due to Congresss ailure to

extend the PTC.17

In rural counties, like Sherman County, wind arms have

pumped new lie into the economy. Although many o the

jobs associated with wind arms are in construction, the

economic stimulus that wind development has providedSherman County is not temporary. Improvements to

public inrastructure and the school system, as well as

the opportunity to lease land to wind companies, have

encouraged young people to stay in the county to continue

its rich agricultural traditions. People talk o wind power

changing the look o a county, and it does, Jan Johnson o

Iberdrola Renewables told Sustainable Business Oregon.

[W ]ind power changes a community in just the kinds o

ways that were talking about. Libraries, schools and public

services.18

Per CapitaIncome Sherman

Per Capita IncomeOregon Average

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

60,000

50,000

40,000

30,000

20,000

10,0000

Total TaxesCollected ($)

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

7,000,000

6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

0

KlondikeWind Farm

Biglow Canyon

Wind Farm

Figure 1. Total Taxes Collected ($)

Figure 2. Property Tax Revenues or Sherman County


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LivingSton county, iLLinoiS

When Streator Cayuga Ridge South Wind Farm began

operation in March 2010, it became Illinoiss largest wind

project. Located in Livingston County, between the townships

o Odell and Emington, the arm consists o 150 separate 2

MW wind turbines. In addition to providingenough clean,

renewable energy to power more than 90,000 homes, the

300 MW wind arm oers a range o economic and social

benets to surrounding communities.

Royalty Payments and Job Creation

Support Local Communities

Iberdrola Renewables, the project developer, pays

approximately$1.2 million in annual royalty payments to

landowners.19 Each turbine occupies less than a hal acre

o land, but brings in an average o $8,000 per year, helping

many landowners remain nancially secure while still

continuing their arming practices.

In addition to creating an additional revenue stream or

landowners, the wind arm has created hundreds o jobs

in the county. During the construction phase, which

lasted rom October 2008 through March 2010, the windproject employed an average o 180 workers onsite, with

a peak o more than 400.20 Sixty percent o the labor was

local.21 According to Livingston County Board Chairman

Bill Faireld, one ull-time maintenance job remains or

every 10 turbines during the operational phase.22 The wind

arms provide the opportunity or skilled labor in a rural

community. A native o Livingston County, Evan Bonnell

described how grateul he was or his job as a wind technician

in an interview with Iberdrola Renewables, explaining, I

would have otherwise had to commute somewhere more

suburban i I wanted something related to what I studied in

schoolelectronics.23

Wind Farm Supports Local Businesses

and the Larger Economy

Furthermore, the wind project has generated a number

o indirect jobs and value along the supply chain. The

construction o Steator Cayuga Ridge South Wind Farm

involved 12 companies in Illinois, seven o which were in

a 100-mile radius, and three o which were in Livingston

County itsel (see gure 3). Phalen Steel Construction

Company, located in Mendota, served as the operations

and maintenance building contractor. Sargent & Lundy,

an electrical engineering group out o Chicago, designed

the switchyard. Narvick Brothers, in Morris, and PrairieMaterial, in Bridgeview, supplied the concrete and rock.

Pontiac companies H.J. Eppel and Company Inc., Masching

Excavating, and Meier Oil did the road and tile work and

supplied the uel.24 Leo Weber o Meier Oil said his company

sold nearly 250,000 gallons to Iberdrola Renewables over the

duration o the projectand the added businesses came at a

time when his company needed it badly.25

The businesses involved in the construction and operation

o the wind arm are not the only ones that have beneted.

An agreement between Livingston County and Iberdrola

Renewables stipulated that the company pay a $6 million ee

on the Streator Cayuga Ridge South project. The unds havebeen set aside to spur economic development in the rural

region, and the Greater Livingston Economic Development

Council has already helped more than a dozen businesses

start up or stay afoat through a revolving loan program

and grants.26 In Dwight, a $100,000 loan helped a local car

dealership stay open, keeping 29 people employed ull-time.2

In Cullom, a $13,000 grant provided hal the capital needed

to open the Cullom Community Market, creating six new

jobs in a town o only 500. The community market prevents

Cullom residents rom having to drive nearly 20 miles to

purchase basic groceries such as canned goods, resh meat,

and produce.28

Wind Farm Benefts Townships and Local

School District via Annual Property Taxes

The tax revenue, up to $3.5 million, has already unded the

construction o a Law and Justice Center and new school

gym.29 In an interview posted on the Iberdrola Renewables

website, Pontiac High School superintendent Leo Johnson

reported that the additional unds had increased the districts

assessed valuation by 10 percent, noting, The additional

Wind Farm Development Benefts

Livingston County, IL

n $3.5 mn n anna prpry ax

n $1.2 mn n anna paymn andnr ($8,000 pr rbn)

n $6 mn na n nd arm, nd ddcad prrn

cnmc dvpmn n rra rn

n incrad ndn r c drc

n Mr an 400 jb crad n cnrcn

n Fn n-rm jb n pran

n tv in cmpan nvvd n ppy can

n t mr ar nd arm ndr cnrcn n cny


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PAGE 7


income can help us keep in place the teaching sta that we

have. It will completely replace our boiler systemit will add

air conditioning to some very vital parts o our buildingthis

extra money, at this point, is certainly going to be helpul inkeeping our quality programs in place.30

Increased Illinois Wind Projects Oer

Promising Vision o Clean Energy Future

The impacts o Streator Cayuga Ridge South Wind Farm

are only the beginning o the story or Livingston County,

where two additional large wind arms are currently under

development. Another Iberdrola Renewables project, Streator

Deer Run Wind Farm, is constructing 165 turbines across

17,000 acres in the north, near the townships o Sunbury,

Newtown, and Esmen.31 Minonk Wind Farm, a 200 MW

project owned by Algonquin Power & Utilities Corp. is puttingup turbines in Livingston County and the neighboring

Woodord County.

Livingston County provides a small glimpse into the

economic boost wind development can provide American

communities. A recent study by Illinois State University

estimates that wind arms have contributed $5.8 billion

to local economies in the state, creating more than 1,900

construction jobs and 800 long-term jobs and paying a total

o$1.1 billion to workers.32

Across Illinois and the United States, wind arms help diversiy

rural economies, providing residents with career and income

opportunities otherwise unavailable, and generating long-lasting and widespread benets by expanding local tax bases.

SPRINGFIELD

Illinois

BridgeviewPrairie Material

ChicagoSargent & Lundy

Pontiac HJ. Eppel and Company, Inc. Meier Oil Masching Excavating

MorrisNarvick Brothers

MendotaPhalen SteelConstruction Company

Figure 3. Streator Cayuga Ridge South Wind Farm

Supply Chain


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cedAr rAPidS, ioWA

We know there are already more than 40companies in our regional supply chain

providing services to the energy industry . . .

[t]hat translates to more than 2,500 current

positions in the region, directly supported

by the industry.33

Kim Johnson, vice president of continuing education

at Kirkwood Community College

Located in the heart o America, two long-time

manuacturing communities in eastern Iowa have seen a

resurgence in jobs thanks to the growing wind industry.

A long-time industrial city, Cedar Rapids, Iowa is used to

seeing actories come and go. However, since wind turbine

manuacturer Clipper Windpower began operation o its

330,000 square-oot acility in 2006, the company has given

the community reason to believe it is here to stay.

Recently, Clipper and other companies described here

have announced layos, in large part attributable to the

uncertainty over whether or not Congress will extend the

PTC, and the impact this has had on the U.S. wind market.

Whether these job cuts are just a temporary blip depends

on how quickly the PTC policy issue is resolved. Moreimportantly, the story o Clipper Windpower and others

demonstrates why growing a domestic wind industry could

be so benecial to local communities around the country.

Clipper is one company among many in Iowas growing wind

industry. Less than an hours drive down Interstate 380 rom

Cedar Rapids, Acciona Windpower began operation in the

town o West Branch in 2007. Manuacturing 1.5 MW and 3

MW wind turbine generators, the Spanish-owned company

has shown a strong commitment to American suppliers and

has helped to generate hundreds o jobs in the region.

In act, Iowa has the ourth largest wind manuacturing

workorce in the nation, and more than 200 companies in the

state are involved in the wind energy supply chain. How did

this sparsely populated state become a hub or renewable

energy? When it comes to manuacturing wind turbines,

location is a top consideration. Each o Clipper Windpowers

signature 2.5 MW Liberty turbines costs upwards o $2.5

million and weighs an enormous 800,000 pounds. In addition

to the loty 300-oot tower, the turbines have three 150-oot

long blades that weigh 8,000 pounds each.34 These large

components are both dicult and expensive to transport,

and thereore it makes sense to manuacture wind turbines

close to their site o installation. Central to major roads andrail services, Cedar Rapids and West Branch provide access to

the center o Americas new Wind Belt.

Iowa's Skilled Workorce, an Advantage in

Developing a Vibrant Wind Supply Chain

In addition to ideal location, eastern Iowa has something else

to oer the wind industry: an experienced manuacturing

workorce. In act, Clipper Windpowers selection o Cedar

Rapids as the location or its manuacturing plant relied

Wind Energy Manuacturing Benefts

Cedar Rapids, IA

n Manacrn jb crad: 460

n hndrd jb ndrcy crad an ppy can

n tcnca prdc manacrn aar ncra $93,450

n 2011

n Cran enry Prdcn and Drbn tcn

Prram a Krkd Cmmny C n 2010


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PAGE 9


heavily on new plant manager Bob Loyd. Beore he joined

Clipper, Loyd ran assembly operations at Goss Graphic

Systems, a Cedar Rapids company that manuactured

newspaper printing presses. When the Goss plant closed in

2001, it let 370 workers jobless.35 These skilled manuacturing

workers were well-suited to begin operation o Clipper

Windpowers new plant. When we started o this plant, I

literally picked up the phonebook and started calling people

I knew, Loyd told Philip Warburg, author o the new book,

Harvest the Wind. I knew good mechanics and electricians,

guys who know gears. I you think about a printing press, its a

big gearbox with hundreds o gears.36 These skills could easilybe transerred to wind turbines, which could also be seen as

big gearboxes.

Over the next ew years, Clipper Windpower created 350

manuacturing jobs in Cedar Rapids. Since the plant began

operation in 2006, the mean annual wage o technical

manuacturing proessionals in Cedar Rapids has increased

rom $59,390 to $93,450 in 2011 (see gure 4).37 These high-skill

manuacturing jobs come with high reward. When Acciona

Windpower opened in West Branch, it created an additional

110 direct manuacturing jobs, a signicant number in a

community with a population o only 2,322.38

Training the Next Generation o Wind Workers

In addition to taking on seasoned proessionals, Clipper

Windpower and Acciona are investing in the next generation

o Cedar Rapids workorce. With the help o Kirkwood

Community College, Clipper has ostered a lasting

relationship with the local workorce and invested in the

next generation o wind technicians. In response to the areas

growing wind industry, the college created a new Energy

Production and Distribution Technologies program in 2010.

In an interview with The Gazette, Kirkwood President Mick

Starcevich explained, At Kirkwood we are always leaning on

our local industries to nd out exactly what their needs are,

what skills their employees are lacking, and what skills they

will need in the uture.39 The new program trains wind turbine

technicians, photovoltaic solar array installers, and solar

thermal hot water system installers, proessions that typically

earn annual salaries in the range o $40,000 to $60,000.40

In its rst year, the Energy Production and Distribution

Technologies program received a $464,726 grant rom the

State Energy Sector Partnership (SESP) to train 40 incumbent

workers and 90 students. Clipper Windpower and Acciona

donated wind turbine components or training, and

Kirkwood brought on Clipper Windpowers lead trainer,

David Bennett, as an instructor.41 The partnership has proven

benecial to not only the college, but to the wind companies,

too. Clipper and Acciona now have access to skilled workers

graduating rom the program, trained on the very wind

turbine they will manuacture at the two companies.

Moreover, Clipper and Acciona send employees to Kirkwood

or additional training each week.42

Kim Johnson, vice president o continuing education

and training services at Kirkwood, expressed condence

that the program would provide graduates with careeroptions or years to come. In an interview with The Gazette,

Johnson explained, The number o energy-related jobs will

increase as additional energy sector employers expand and

locate their acilities here in this region. Currently, supply

chain vendors are hiring Kirkwood industrial technology

graduates. We know the additional grads will nd additional

opportunities as these companies locate and expand.43

In addition to the jobs directly created at Clipper and

Accionas manuacturing plants, the wind companies are

Cedar Rapids Wage forManufacturing Occupations

Iowa Mean Annual Wage

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2001

2011

10,000

8,000

6,000

4,000

2,000

0

Figure 4. Average Per Capita Income Increase


12/16


13/16

PAGE 11


cAnton, ohio

Theyre creating a new industry with new

products. The byproduct or our students

and our state is new industries and new

high-skill, high-tech jobs.48

John ODonnell, president of Stark State College

Canton's Manuacturing Background, SkilledWorkorce, and Adaptable Companies Open Doorto a Growing Wind Sector

Central to major railways, and in the heart o Americas RustBelt, Canton, Ohio was once one o the Midwests premier

manuacturing cities. With the decline o American heavy

manuacturing, however, the citys industry shited into a

service economy, including healthcare, retail, and education.

The wind industry is changing that and beginning to restore

American manuacturing jobs in Canton and the larger Stark

County. The city is quickly becoming a wind energy hub,

ostering technological innovation and creating high-tech,

high-paying jobs (see gure 6).

The wind industry rst took root in Canton when the

Timken Company began supplying the energy market in

1982. Timken employs more than 4,000 workers at its 10locations in Ohio. Five o those are in Canton and employ

over 400 workers.49 Although the company produces bearings

or a variety o industries, the wind industry accounts or

a growing share o its sales.50 More than 100 o Timkens

employees in Canton work solely on highly-engineered

bearings or wind turbine gearboxes and main shats, and on

condition monitoring services or the wind industry.51

Graco: Fabrication andcomposite equipment

XCEL Mold and

Machine Inc.: Machine shop

Sherwood: Composites and polymers

Union Metal Corp.: Fabrication

Power Systems Development:

High-voltage engineered systems providerEverhard: Fabrication

Greentec: Fabrication

Gaspar Inc.: Fabrication

Canton Drop Forge: Forging

North American GalvinizingCompany: Metal coatings

King Machine and Tool: Machine shop

V & S Schuler Engineering: Structural steel supplier

Jacodar: Machine shop

Midwest Industrial Supply: Soil stabilization

Seifert: Machine shop

Midlake Products & Mfg. Co.: Custom hinges

Magnetech: Generators, transformers, and motors

Cot-Puritech: Lubrication Services

Timken: Bearings for gearbox, hubs

and structures, main shaft, and towers

Figure 6. Companies in the Wind Energy Supply Chain, Stark County, Ohio

Wind Energy Manuacturing Benefts

Canton, OH

n Nnn cmpan nvvd n nd nry ppy can

n $86,350 avra aary r nd cncan

n indry parnrp sark sa C

n wnd enry Rarc Dvpmn Cnr

n Cmmny namn by nd cmpan: ennr r a

Day' prram


14/16

PAGE 12


As the area's wind industry has grown, Canton companies

have shited production to supply this emerging market.

Graco, long-time provider o pumps and spray equipment

or the construction, manuacturing, processing, andmaintenance industries, saw an opportunity in wind turbine

component manuacturing. In Canton, Graco employs 150

workers and now produces protective coating or turbine

towers, manuactures rotor blades, and provides automatic

lubrication or wind turbines.52 As Howard Learner, executive

director o the Environmental Law and Policy Center told

North American Windpower, Its your classic rust belt

manuacturer that has been making parts and equipment or

many industries over time, and in the growing clean energy

economy sees a new market or its products and services and

sees a chance to either maintain current jobs or grow and

expand.53A total o 19 companies in Stark County are now

involved in the wind industry. Suppliers range rom V & SSchuler Engineering, a structural steel supplier that employs

280, to Canton Drog, a orge manuacturer that employs 300,

and Gaspar, a machine shop that employs 55.54

Next Generation Wind Technologies

Being Launched in Canton

One o the most promising results o the wind industry

clustering in Canton is the ounding o the citys new Wind

Energy Research and Development Center. The rst o

its kind in North America, the $11.8 million research and

development center or mission-critical power systems isexpected to begin operation in November 2012. The center

has already created 65 jobs directly, and will oer a one-year

technical certication program in wind turbine maintenance

technology through Stark State College. The 18,000 square-

oot acility is a collaborative eort between Stark State, Stark

County Port Authority, and The Timken Company.

Having invested more than $6 million in the acility, Timken

plans to test ultra-large bearings and sealing systems at

the centerusing equipment that mimics the operating

environment o large commercial wind turbines. Developedor the next generation o wind turbines, the largest bearings

are expected to weigh more than ve tons. The partnership

will support the development o clean energy academic

programs and internships or students, John ODonnell,

president o Stark State College explained in a Timken

Company press release. Also, the return on investment is

that it will position Ohio as a leader in renewable energy

technologies.55 The center is expected to advance power-

transmission component technologies or the wind industry

and increase opportunities or skilled labor in Cantonby

training technicians to provide a range o services to wind

turbine manuacturers and operators.56The average salary

or wind technicians in Canton is $86,350, with startingsalaries more than $71,100.57

The new research and development center represents a

continuation o Timkens engagement with the Canton

community. Every year, the Timken Technology Center

in North Canton hosts Engineer or a Day or Canton

high school students interested in science and technology.

Students are given the opportunity to spend a day with

engineers on the job, and work together to learn problem-

solving strategies in testing, marketing, and product design.

Since the program began, more than 1,000 students have

attended the event.58

The industrys rapid growth and the wind companiesinvestment in educational programs in the community

indicate that the benets rom wind energy in Canton are

only just beginning. As demand or wind capacity in the state

grows, more companies will enter the wind energy supply

chain, creating American manuacturing jobs and urther

advancing wind energy technology.


15/16

PAGE 13


Wind energy is an important part o our uture. As we replace our aging

energy inrastructure and look or ways to both rebuild our economy

and compete in new global industries, all while minimizing pollution,

renewable energy resources like wind power can provide the secure, reliable, and

clean energy options that Americans o all political stripes want. As this report shows,

moving orward and embracing clean, renewable energy that is ound in the United

States has the ability to transorm our communities in dramatic ways.

Each o the communities proled in this report have been on

the rontlines o the growing wind industry. While the details

may dier, the story remains the same: wind development,when pursued sustainably, with strategic reinvestment, and

a broad distribution o benets, can be immensely helpul to

communities around the country. A community can leverage

its historical advantages, the existing skillsets o its residents,

and its local resource base to support wind manuacturing

and an accompanying supply chain. Or, a community with

good wind resources can harness that wind energy and

use the accompanying nancial returns to reinvest in their

schools, their roads and local economic development.

Unortunately, all o this gain is under threat, due to the

increasing uncertainty o not extending important support

or clean, renewable energy like wind power. Passing an

extension o the PTC and preserving and bolstering other

successul ederal and state policies would help American

communities in all sorts o ways, rom keeping and creatinglocal jobs, to cleaning up local air and water, to increasing

government revenues that can be reinvested in schools and

roads, to growing local industries that can benet the entire

area. On the other hand, allowing the PTC to expire will

block the wind industry's growth, and could hinder other

communities rom seeing the kinds o benets outlined in

this report.

Ultimately, the choice is ours. We can ignore the considerable

benets rom wind power or we can move orward and invest

in this new, and exciting clean energy uture, bringing these

benets to communities across America.

CONCLUSION

MULAD


16/16

Endnotes

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Documents

wind-communities-ib.pdf