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What you need to know for 01/17/2018

Study: Constitution Pipeline to bring $188M

Study: Constitution Pipeline to bring $188M

Roughly $188 million in spending would benefit Schoharie and four other counties if the Constitution

Roughly $188 million in spending would benefit Schoharie and four other counties if the Constitution Pipeline is built, according to results of a study announced this week.

The Rochester-based Center for Governmental Research estimates the construction phase for the 123-mile pipeline would create 2,400 jobs — 1,400 in the construction industry — during a three-year period.

The study is among several Constitution Pipeline expects to submit to the Federal Energy Regulatory Commission by the end of this month.

The company is proposing to build a 30-inch steel pipe from Susquehanna County, Pa., into Broome, Chenango, Delaware and Schoharie counties in New York.

CGR, an independent nonprofit founded in 1915, performed an economic impact assessment on the region and estimates 28 percent of the project’s $683 million cost will benefit the five-county region directly.

These impacts include an estimated $96 million in income for employees, yielding $5.2 million of income tax revenue for New York State.

Sales tax during the construction phase is estimated at $7.5 million in New York and another $1.3 million in Pennsylvania, according to an executive summary.

The full, detailed report is pending and will be submitted to the FERC, Constitution Pipeline spokesman Christopher Stockton said Monday.

“When you look at something like this, you can look at it from a lot of different angles. Obviously when we proposed something like this, we’re looking at the big picture,” Stockton said.

The big picture is a shift in the supply of natural gas that typically comes from Canada and the Gulf Coast but is now growing in domestic sources.

But in addition to global energy supplies, Stockton said it’s important to recognize the local impact of a major pipeline project.

“When you get down to that level and you start doing the research, I think it’s important for us to be able to demonstrate that there are benefits, economic benefits, that come into play,” Stockton said.

Other findings in the study include an estimate for new sales and income tax in the five-county region the pipeline would bring to the state and federal governments: $14 million.

Payroll during construction is estimated at $96 million, about $60 million of which is tied to construction activities.

If approved and built, the pipeline itself would generate continual economic benefits, according to the report.

Pipeline operation would create 12 jobs, adding $700,000 in new income and resultant $100,000 in additional income tax revenue for New York and Pennsylvania.

Property taxes on the pipeline itself are estimated at $13 million.

Schoharie County would seen an estimated $4.4 million, Delaware County would receive an estimated $4.9 million. Broome and Chenango counties would receive $2.1 million and $1.3 million, respectively, and Susquehanna County, Pa., would get an estimated $250,000 in annual property taxes.

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