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Re: bfontana post# 76967

Tuesday, 10/19/2010 3:00:19 PM

Tuesday, October 19, 2010 3:00:19 PM

Post# of 103302
2nd one

Link http://nhpr.org/200-jobs-north-country-maybe

State officials are continuing their evaluation of the proposed 70 megawatt biomass plant in Berlin.

Laidlaw, the company that wants to build the plant, offers many reasons it would benefit the North Country.

And one of them is the prospect of 200 local jobs in the logging industry to supply the plant with fuel.

NHPR correspondent Chris Jensen has been doing a little searching, and he’s found the prospect of those jobs is far from a promise.

With the collapse of the paper industry, the North Country needs jobs.

That makes the huge biomass plant proposed for Berlin very attractive to some people.

The developer, Laidlaw Berlin Biopower, promises 40 jobs at its plant near downtown.

It also says gathering and delivering wood will create another 200 jobs.

And many North Country officials, including Coos County Commissioners, State Senator John Gallus and Executive Councilor Ray Burton, repeat those claims.

But after hearings conducted by the state’s Site Evaluation Committee in August and September, it’s clear those North Country jobs are not guaranteed.

“I wouldn’t say that there is any certainty that 200 jobs are going to be created in the North Country.”

That’s Allen Brooks. He’s a senior assistant attorney general. His job has been to watch out for the public’s interest.

“Well, I think it very difficult to accurately predict where those jobs are going to be created.”

Company officials have promised they would give preference to north-country suppliers, quote, “to the extent feasible and economically reasonable” endquote.

They’ve also said it would make financial sense to buy wood as close to Berlin as possible.

But there were no guarantees.

At one point Laidlaw vice president Louis Bravakis said “some wood can come as close as 10 to 20 miles from a facility.

Then, he added, some wood could come from “as far as 200 miles from a facility.”

He also acknowledged that Laidlaw feels a nearby rail line could open up other options.

Public Counsel Allen Brooks: “The statement was made in the hearing that it is economically beneficial to get wood from close rather than far because of the transportation costs.”

But there’s a caveat.

“There’s also discussion of possible efficiencies from back-hauling from Massachusetts. If that is the case then you might have a situation where some of the transportation people or the loggers wind up working farther away.”

Back-hauling is basically moving left over wood left over from one project to another.

In fact, the company’s estimate of 200 jobs created did not come from a study done of the North Country.

Laidlaw said it used a study done in Massachusetts.

It estimated the number of jobs created for every megawatt of power.

When asked about that estimate during the hearing Laidlaw CEO Michael Bartoszek, said it was harder to estimate “secondary benefits” such as the forestry jobs.

Bartoszek was not available for this story.

It is those forestry jobs that would provide the best, long-term benefits.

But there would be other jobs created in the short-term and they seem likely to benefit the north country.

In its filings Laidlaw says the $110 million construction project will put about $70 million into the local economy.

Construction would last between 26 and 32 months and it would put hundreds of people to work.

That’s not all.

“There are a lot of ancillary benefits to the city other than direct payroll that will be spent in the town.”

That is Berlin mayor Paul Grenier.

One is a scenic walkway along the Androscoggin River, right near the plant.

“They are going to pick up the cost of doing it and they are also going to pick up the cost of maintaining it for the first five years.”

Berlinalso expects to get some tax money.

“Berlin is going to get anywhere from a million and a million and a half a year in new tax revenue for the city of Berlin, which is desperately needed.”

Grenier admits that is an estimate. The details have yet to be worked out.

The Laidlaw project has been approved by the state’s site evaluation committee.

But the committee has yet to make it official by releasing a final document that would include any conditions.

That filing is expected no later than October 22nd.

It’s not clear whether those conditions might somehow address murky issues like logging jobs.

One condition that the document will address, however, involves the state’s public utilities commission.

The site evaluation committee has made its approval contingent on PUC approving Laidlaw selling its power to Public Service of New Hampshire.

The PUC is expected to hold a hearing towards the end of the year.

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