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Wind Builds the Future in Rural Communities

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Wind Builds the Future in Rural Communities Wind Builds the Future in Rural Communities Communities across the country, Wind Builds the Future in Rural Communities particularly those in rural Wind projects pay over $1.6 billion in state and local taxes and landowner lease areas, currently face a barrage payments every year, and this number only goes up as more wind projects come online. This critical revenue helps bridge budget shortfalls and allows communities to invest of challenges as they seek to in their future, providing new resources to expand opportunities in their schools and build vibrant local economies. social services. The jobs needed to build, operate and maintain wind projects offer young people careers that will support their families without needing to leave home, and Attracting and retaining young lease payments provide farmers and ranchers a drought-proof cash crop that stabilizes people, adequately funding agricultural economies. schools, and providing essential The following case studies, spanning nine states, provide specific examples of local benefits wind projects create, and highlight the many ways wind is building a prosperous services have all proved difficult future. in recent years. And that was before the COVID-19-induced O’BRIEN COUNTY, IOWA recession added another layer Nancy McDowell, O’Brien County Supervisor of uncertainty. However, some Nestled near the heart of the “wind belt” in the northwest corner of Iowa, lies a county known as one of the most wind-friendly areas in the state—O’Brien County. Since 2016, communities are overcoming O’Brien County has hosted three wind farms, Highland I&II and O’Brien, producing over these obstacles better than 500 MW of energy, putting them in the top three counties for total wind capacity in the state. O’Brien county has been vital to Iowa’s wind energy success story and continues to others—those hosting wind play a role in the state’s national leadership in utilizing this natural resource. projects. O’Brien County has looked to wind energy Between the added valuation to grow its tax base, attract and retain a and increased taxes, we were younger population, create jobs and provide valuable revenue to landowners who have able to actually reduce tax been impacted by the struggling farm rates when many counties economy. The county has seen substantial increases in funding for its schools, a in Iowa were having to raise decrease in its property taxes, and a boost taxes immensely to cover to the locals’ pocketbook, which has allowed many of the county’s farmers to pay off increased costs. debts, expand their operations and send their children off to college. During the construction of these wind farms, O’Brien County saw a massive economic boom. For three years, the county saw hundreds of workers dine and shop at its local businesses, rent and buy housing and utilize the local recreation. Many of these workers chose to stay in the county permanently to raise their families. Challenges remain, however, for O’Brien. Like with other small, rural counties, O’Brien has an aging population, a lack of affordable housing and has too many job openings to fill with people. While wind energy has helped stimulant parts of the local economy, kept taxes low, and retain some of its younger population, it will take more to alleviate some of these local stresses. American Wind Energy Association | awea.org n Left: Construction of Highland Wind Farm Photo: ©Brian Barkley 2015 Despite these challenges, the community has welcomed the benefits wind energy has brought to help sustain the county, while others feel the strain. COVID-19, while a hiccup in the road, has not burdened the county’s budget, due in part of the revenue coming from its wind farms. O’Brien County Supervisor, Nancy McDowell, says their wind projects have been “very reassuring” and a “critical” part to their budget. McDowell adds, “Between n Above: Glaciers Edge Wind Farm the added valuation and increased taxes, we were able to actually Photo: ©Cherokee Area Economic reduce tax rates when many counties in Iowa were having to raise Development CorporationLeft: taxes immensely to cover increased costs.” n Left: Bill Anderson (Cherokee Area CHEROKEE COUNTY, IOWA Economic Development) and Jacob Bossman (State Representative and Bill Anderson, Cherokee County Economic Development Senator Grassley regional director) Cherokee County, situated in northwestern Iowa, is an emerging stand in front of a wind turbine blade wind energy leader in the state. The newly built 200 MW Glaciers where a signing ceremony was held Edge wind farm is one of two Iowa wind projects with purchase to commemorate the completion of power agreements from corporate tech giant Google. Google’s Google’s Glacier’s Edge Wind Project investment has resulted in 25 new jobs and $1.5 million in annual property tax payments to the county, and a second phase of this project is currently under development. Like with many smaller rural counties, Cherokee has faced challenges making the resources and infrastructure available to execute large-scale economic development projects, which is why which forced area small businesses to close their doors. While Glaciers Edge is a success story. The collaborative spirit between the county has now regained some footing with their community the county government and the developer to bring this project to support to “buy local,” many of the county’s business leaders are still fruition has resulted in a diversified and vibrant local economy. experiencing issues with sales and disruption to the supply chain. Attracting and retaining a workforce also continues to be a Despite all of this, there is an optimistic view the endures among challenge, but thanks to generous donors, the county now offers Cherokee’s residents because of projects like Glaciers Edge, the Cherokee County Promise Fund which helps with tuition for which has steadied the county’s economic ship. Because of the those attending Western Iowa Tech Community College. All of economic benefits the project delivers to the community, such as this is an effort to provide a high quality of life, which then fosters funding for the school district and lease payments to landowner, growth in the county. many residents are looking forward to the second phase of Another hurdle the county has had to face is the COVID-19 crisis, Glaciers Edge Wind Project. American Wind Energy Association | awea.org 2 FORD/LIVINGSTON COUNTY, ILLINOIS This newer source of revenue is more important Jeff Bryan, Tri Point School District Superintendent than ever during uncertain economic times, Prior to the investment from the wind industry in our community, including the COVID-19 pandemic. We’re we had been forced to cut our school staffing back to the bare bones. We had let 10 teachers go and downsized our support fortunate to have an extra layer of certainty in staff. Even with those measures we were running a $300,000 our budgets as a result of the local wind projects. operating deficit while grappling with unpredictable state funding. Under those circumstances, it’s extremely difficult to retain talented teaching staff and offer our students the certainty in local budgets that harvesting wind provides. Reliable, opportunities and support services they deserve. locally controlled revenue sources allow us to continue major The roller coaster of state funding for our district is certainly projects in the county, even in difficult economic times – including going to worsen in the current economic environment. The loss of the renovation of county buildings and the construction of a new tax revenue during COVID-19 and added costs to governments high school in Mt. Pulaski. at all levels cast a huge shadow over future funding levels. Locally, In addition to the significant tax revenues for basic services, the we’re also facing added costs to assist our students and teachers wind industry is an important new community partner for our with online learning. region. The industry has responded to numerous local charities And we are being proactive about developing creative solutions in need – often without recognition. Hill Topper wind farm, the to provide our teachers and families the best possible safe-guards most recently completed project, contributed $110,000 to area next year. Steps such as enabling remote teaching should we need economic development, allowing for the creation of a local food to provide precautionary quarantines for a teacher or class – coop and renovation of historic buildings, including the historic anything we can do to avoid forcing teachers to take precautionary former courthouse where Abraham Lincoln once practiced law in sick days and further disrupt Mt. Pulaski. their students learning. With those funds, The wind projects in our region generate hundreds of millions of we have our own, The wind farms in our district dollars in capital spending across the state, and tens of millions have been life-changing for of dollars in payments to landowners over the life of each wind local stream of our students, our teachers, and farm. Our partnership with the wind industry also presents funding allowing the future of our district. The an important opportunity for future growth and prosperity two wind farms in our district outside the energy sector. Expanded access to clean and reliable us to confidently together generated over $2 new sources of energy make Logan County more attractive to make long-term million in revenue in their first additional new investment from industries of all kinds. year on our tax rolls. We will see The Logan County Economic Development Partnership is proud investments in our more than $3 million in revenue to partner with the wind industry and further add to the diversity over the life of these projects. district. To date, of energy that is helping Logan County and Central Illinois grow we have hired With those funds, we have our and prosper.
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