Iowa Power Fund Will Create Over $40 Billion in Economic Output by 2033

The Iowa Power Fund, a creation of the 2007 Iowa legislature and the Culver administration, invested $38.3 million in 31 clean energy projects in the Hawkeye state through September 2010. A new report released by the state details the economic impact and jobs created by that investment and projects the ultimate economic output over the next 20 years. The Power Fund’s vision is of “Iowans creating an economically viable and environmentally sound energy future.” As a member of the original Power Fund Board appointed by Gov. Culver in 2007 and Chair of the Rules Committee that wrote the administrative rules for the Power Fund, I feel great pride in what we achieved, including:

  • Average annual economic activity associated with ongoing project operations totaling nearly $22.7 million, peaking at $59.1 million in 2012
  • Average annual economic activity associated with construction of more than $84.9 million, peaking at $285.2 million in 2012
  • Increased employment, annually averaging more than 200 jobs, peaking at more than 430 in 2011 with an average annual payroll of $7.8 million
  • State tax revenues averaging more than $859,000 annually, topping $2 million in 2011 and 2012

The study assesses the specific impacts of projects that have been funded directly, then offers an analysis of the long term impacts when projects are successfully replicated.

Highlights of long term estimated cumulative results from 2014 – 2033 are:

  • Economic output for Iowa of more than $40.3 billion
  • Cumulative workers’ earnings of $3.8 billion
  • Employment in more than 8,487 jobs
  • State tax revenues of $475 million

According to the report released last week by the Iowa Office of Energy Independence,

[t]he economic impact study shows Iowa is in a prime position to capitalize on investment in renewable energy technologies such as biofuels, wind and photovoltaic cells. At a time when jobs, economic downturns and unstable energy costs pose challenges to the state, these projects offer an opportunity for increased employment, community development, energy supply choices and the potential to reap dividends on    commercialization of innovative energy technologies.

The projects set the stage for growth of manufacturing, agriculture and other economic sectors through future development of the energy industry in Iowa. Successful projects also repay the state’s upfront investment as technologies are replicated.

Total cost of funded projects is approximately $368 million, including construction and other project costs. The Power Fund’s investment represents 10.4% of total project budgets, attracting nearly $9 from other sources for every $1 invested by the state of Iowa. Even the low-range scenario for economic output through 2033 from Power Fund investments made before September 2010 is over $40 billion.

Want a good return on your money? Invest in Iowa’s clean energy economy. It’s going places.

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5 Responses to Iowa Power Fund Will Create Over $40 Billion in Economic Output by 2033

  1. Chu Ling says:

    The Iowa Power Fund Board approved terms to start contract negotiations on a grant award for alternative energy projects. Once the contract is approved, this project would create more jobs for Iowans. While I am behind anything that leads to Construction projects in Iowa, and I understand the need for new sources of energy, my biggest concern as a construction worker is actually finding work. In today’s tight economy is really hard to find detailed leads for jobs that are in my niche and suit me well. Until I stumbled across Dodge Projects, on another blog, I was really out of luck. I can’t believe how valuable they have proven to be. I really can’t recommend them enough.

  2. Truth Hound says:

    Some of these forecasts are fantastical.

    Given the fact that most of the money that went to commercial projects went to test facilities for companies located out of state or out of the country, imagining sustainable economic growth to come from those projects is largely that, unsubstatiated imagination.

    As this post makes clear, http://truthiowa.com/2011/04/is-the-iowa-power-fund-in-iowa/, most of the power funds investments will benefit people and companies not based in Iowa.

    • Are we looking at the same data? All the projects are based in Iowa, so the investment dollars create Iowa infrastructure and jobs, and the matching investment funds far outweigh the state contribution. Are you complaining because some companies are incorporated in other states? Isn’t it a positive for companies incorporated elsewhere to bring investment funds to Iowa projects far in excess of the state’s contribution? Are you saying that Iowa should only give out grants to companies incorporated in Iowa? What would that accomplish? Did you read the Office of Energy Independence report? Or are you just opposed to government doing anything, anywhere, anytime?

      • Truth Hound says:

        As I mentioned, their assumptions are fantastical. I will take the time in the near future to dissect the fantasy.

        I am not complaining because “some companies are incorporated out of state”. They are almost all headquarted out of state, rendering the investments of the Iowa Power Fund in conflict with their stated mission and, in effect, some wayward effort into incentivized mercantilism.

        Similarly, I would not be objecting if the funds’ commitments met the stated mission of the fund, were geared toward high growth/entrepreneurial efforts, and they were more balanced between operational installations of any company from anywhere and an attempt to foster an Iowa based industry. The funds’ commitments are not, however, balanced as they have gone almost exclusively toward non-entrepreneurial, operational installations (thus my comment on incentivized mercantilism) of large companies located outside of Iowa.

        As is typical in these types of issues, objections of magnitude, scope and proportion devolve into “either/or” positions.

  3. Pingback: Iowa State Capitol News – Weekend Recap | Blog for Iowa

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