WSP10086

• File Number: 8040.100
• Description: Section D General Studies - Power
• State: CO
• Basin: Statewide
• Date: 3/1/1976
• Author: HUD
• Title: Rapid Growth from Energy Projects - Ideas for State and Local Action
• Water Supply Pro - Doc Type: Report/Study

0010l?

lowed by stable permanent population. The impact
was gradual enough to allow public services to keep
up with demands.
All too often, however, while benefits are 10ng-
range and regional, the negative impacts are immediate
and local. The severity of the impacts on communities
depends on several factors: original population size,
rate of growth, level of unemployment, condition of
local services and facilities. and quality of planning.
Impacts also vary by the type of energy project. Of
all these indicators. the rate of growth appears to
predict severity of impacts best. In its studies of
energy impacts. the Denver Research Institute
concluded:

"An annual growth rate of ten per cent strains local
service capabilities. Above fifteen per cent seems to
cause breakdowns in local and regional institutions. ,,2

Employment and Population

What happens when an energy project comes in?
If it's a nuclear power plant, for example, there could
be a surge of construction workers LJp to 2,500 at its
peak. Five to ten years will be required to build the
power plant. The population will increase as workers'
families come in. The number of workers needed to
run the energy project after it is built /5 generally less
than the construction force. Providing housing and
services is difficult with a temporary build-up and
decline.

land Use and Housing

In most cases, the first local impact is on hOllsing_
The few vacant houses are quickly snapped up, by
either temporary or permanent residents. The most
visible sign of the energy boom is the mobile home.
When all available standard housing has been taken
up and little new housing is being built, workers and
their families turn to mobile homes. If there are not
enough spaces within the existing community, the
units will scatter across the landscape creating "alumi.
num ghettos." It is not the mobile home itself which
is the problem, but inadequate planning, lack of con-
trol over siting, and few amenities.

Community Life

Life in the community changes as a fast rate of
growth produces symptoms of urbanization, such as
a speeded up pace of life, congestion, inflation of
prices and scarcity of amenities. Particularly significant

are possible tensions between long-time residents and
newcomers, and the lack of activities for wives of
project workers. A major problem in human services
is likely to be medical care, getting enough doctors
for increased population. Traffic is often a problem,
and added housing puts large demands on the water
and sewer systems.

Fiscal Impacts

Revenues from energy developments are generally
sufficient - in the long-run and at the regional level -
to offset induced costs. However, for the individual
community, there are problems of timing and geo-
graphic di'5tribution of revenues:

Revenues may appear too late. The taxes imposed
on the energy project come ;n after the project is
completed. Where is the city or county to get
money to solve problems which are there now?
Revenues may be distributed without regard to
need. The taxes on the plant usually go to the
county (and the state), while the major impacts are
in the cities where the people live. The cities may
get no tax money at all from the energy project.
Or the project may be in one county, while the
community where workers live is across the county
(or even state) line. How can tax revenues line up
with needed expenditures?

CONSTRAINTS ON ACTION

If we know what the problems are, what keeps us
from solving them? Well, we know a lot more about
the problems than the solutions. There are many con.
straints that limit the ability of the local community
and State to respond. In general they involve the in-
ability to predict, lack of growth management tools
and experience, and lack of money. It is difficult to
plan a meaningful response when the details of the
future are unclear.
Most communities which will bear the impacts of
energy projects are small and remote, often without
experienced and professional help. In the s;x States
of the Denver Federal Region, one-half of the 131
communities to be impacted have less than 1,500
population and are more than 100 miles from a
metropolitan area.3 The fiscal constraints place
limitations by restricting tax rates, debts, grants and
allocations available to local and State governments.

These constraints can be overcome with foresight,
planning and cooperative efforts among local com-
munities, area-wide districts and States.

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