U S Department of the Interior Economic Report FY 2013 DRAFT

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Fiscal Year 2013,Table of Contents,List of Tables ii. List of Figures ii,Executive Summary iii,Chapter 1 Introduction and Overview 1. Background 1,The FY 2013 Report 4, Overview of Outputs Produced and Economic Values 6. Chapter 2 Value Added Output and Employment Estimates 11. Introduction 11,Value Added and Economic Contributions 11. Chapter 3 State Level Estimates 20,Appendix 1 Technical Information 29.
Contributors 40,Fiscal Year 2013,List of Tables, Table 1 1 Interior Managed Resources Production Quantities and Values FY 2008 FY2013 7. Table 2 1 Estimated Economic Contributions Resulting from Interior s Activities 16. Table 2 2 Summary of FY 2013 Economic Contributions by Bureau 17. Table 3 1 Estimated Value Added Supported by Interior Activities by Sector and State FY 2013. billions 22, Table 3 2 Estimated Total Output Supported by Interior Activities by Sector and State FY 2013. billions 24, Table 3 3 Estimated Total Jobs Supported by Interior Activities by Sector and State FY 2013 jobs 27. Table A1 1 BOEM and BSEE Administered Industry Economic Impact FY 2013 34. List of Figures, Figure 2 1 Youth Employment by Bureau Active Employees Age 15 25 FY 2013 14. Figure 3 1 Top Ten States for Value Added in All Sectors 2013 billions 20. Figure 3 2 Top Ten States for Value Added in the Recreation Sector 2013 billions 21. Figure 3 3 Top Ten States for Jobs Supported in All Sectors 26. Figure 3 4 Top Ten States for Jobs Supported in the Recreation Sector 26. Fiscal Year 2013,Executive Summary, The U S Department of the Interior DOI or Interior plays an integral role in protecting America s.
natural resources and heritage honoring our cultures and tribal communities and supplying the energy. to power our future Interior s people programs and responsibilities impact Americans across all 50. States The Department is the steward of 20 percent of the Nation s lands managing national parks. national wildlife refuges and public lands and assisting States Tribes and others in the management of. natural and cultural resources Interior grants access to public lands and offshore areas for renewable. and conventional energy development covering roughly a quarter of the Nation s domestic supplies of. oil and natural gas while ensuring safety environmental protection and revenue collection for the. American public Interior oversees the protection and restoration of surface mined lands and is also the. largest supplier and manager of water in the 17 Western States assisting others with water. conservation and extending water supplies and providing hydropower resources to power much of the. 17 Western States The Department serves as Trustee to American Indians and Alaska Natives fulfilling. essential trust responsibilities to tribal communities Interior s Office of Insular Affairs OIA carries out. the department s responsibilities for U S affiliated Insular Areas which include the territories of Guam. American Samoa the U S Virgin Islands the Commonwealth of the Northern Mariana Islands and three. sovereign freely associated states FAS which includes the Federated States of Micronesia the Republic. of the Marshall Islands and the Republic of Palau The Department supports cutting edge research in. geology hydrology and biology informing resource management and community protection decisions. at Interior and across the world, This report represents the fifth in a series of annual economic reports initiated with a preliminary report. released by Interior in December 2009 In the on going effort to improve our data reporting and. estimation while minimizing administrative burden the FY 2013 report adopts a more streamlined. format to provide information on economic contributions and value added employment supported and. economic values associated with some of the outputs produced on Interior land 1 Comparing output and. value added value added more accurately captures the dollar value of Interior s resource management. activities, Although estimates of value added and economic contributions provide important information on the. effect of expenditures on outputs from Interior lands in local economies there are additional economic. values placed on DOI resources not captured in markets which would give a more complete accounting. of Interior s activities For example the complete accounting of impacts would include the value. individuals place on recreation above and beyond their expenditures contributions to U S energy. security preservation of natural habitats and endangered species and opportunities associated with. water use While there are established methods to value environmental benefits their estimation is. outside the scope of this report, More detailed treatments of topics from this report are available in the FY 2012 Economic Report. Executive Summary iii,Fiscal Year 2013, In FY 2013 production and activities on DOI lands were associated with about 200 billion in value. added and 360 billion in economic output supporting an estimated 2 million jobs Information related. to economic contributions value added employment and other economic values associated with. Interior s diverse activities is summarized below, Recreation In FY 2013 Interior s lands hosted an estimated 407 million visits 2 The net.
economic value of a visit to Interior lands varies depending on the activity For FY 2013 value. added provided by visitation to Interior sites was estimated to be 25 billion economic output. was estimated to be 41 billion and about 355 000 jobs were supported. Renewable Energy In FY 2013 Interior lands and facilities produced 40 million MWh of. hydropower Also in FY 2013 Interior approved the installation of 826 MW of wind capacity and. 1 000 MW of solar power projects on public lands Renewable energy activities were estimated. to contribute about 5 billion in output and support over 20 000 jobs In aggregate generating. electricity with renewable energy reduces the amount of electricity supplied by fossil fuel plants. along with the associated emissions and reduces our Nation s dependence on foreign oil. Market values of power typically do not reflect the adverse environmental and health costs to. society associated with fossil fuel pollution or the corresponding benefits to society from. substituting cleaner sources of energy, Conservation The value added economic contributions and employment supported by DOI s. conservation related activities are difficult to measure separately because conservation could be. a component of recreation ecosystem restoration water management and even some mineral. development activities Many benefits of nature conservation accruing to households. communities and economies are not defined with a set of consistent metrics nor are they. bought and sold in markets This creates challenges in the valuation of these goods and services. Restoration Every Interior bureau engages in some form of restoration from physical structures. to habitat and cultural resources For example the Office of Surface Mining Reclamation and. Enforcement OSMRE hosts the Abandoned Mine Land Inventory System e AMLIS an. inventory of land and water impacted by past mining primarily coal mining containing. information on the location type and extent of AML impacts as well as information on the cost. associated with the mitigation of those problems Additionally In May 2013 BLM published. Abandoned Mine Lands A New Legacy which covers the successes of its AML program between. 2009 2011 The DOI Restoration Program works across bureaus to ensure that responsible. parties not taxpayers bear the cost of restoring injured resources following a release of oil or. other hazardous substances at hundreds of sites around the Nation where over 122 000 acres. and more than 330 miles of stream and shoreline were enhanced restored or. managed protected in 2013 Restoration projects have significant economic impacts which vary. in scope depending on the extent and nature of the activities undertaken. Fossil Fuel Energy In FY 2013 Interior managed lands and waters produced 652 million barrels. of crude oil 4 trillion cubic feet of natural gas and 420 million tons of coal Some average prices. in FY 2013 included 101 bbl for oil 3 72 mcf of natural gas and 11 per ton of Powder River. Basin coal Oil gas and coal produced from Interior lands were estimated to provide value. added of 121 billion estimated economic output contribution of 220 billion and an estimated. 1 million jobs External costs are associated with the development of oil gas and coal produced. from Interior lands and with the production and the use of these resources Market prices do. not fully reflect these costs Various regulations and other requirements designed to minimize. adverse environmental impacts internalize some but not all of these external costs. This value includes the total visits to Bureau of Reclamation facilities in 2012 due to data availability. iv Executive Summary,Fiscal Year 2013, Non fuel Minerals In FY 2013 Interior lands produced a wide variety of minerals For example. it is estimated that about 2 4 million ounces of gold were produced from Federal lands in. Nevada the average price of gold in 2013 was 1 400 per ounce Non fuel mineral production. was associated with an estimated value added of 7 9 billion estimated economic output of. 12 5 billion and estimated employment supported about 45 900 jobs While minerals are. generally traded in competitive markets though some markets may be localized or thin prices. may not incorporate the external costs associated with mining Moreover the Federal leasing. system completely offset these costs which are primarily associated with the environmental. impacts of mining Various regulations and other requirements designed to minimize adverse. environmental impacts help to internalize some of these external costs. Forage and Grazing In FY 2013 Interior lands produced nearly 9 million animal unit months. AUMs of forage Prices for forage vary widely from 1 35 per AUM fee on BLM managed lands. to 17 on State and private grazing lands This production is associated with 1 5 billion in. economic output and supported about 18 000 jobs Value added figures were not readily. available for forage and grazing Forage prices do not fully reflect various ecosystem service. values provided by rangelands, Timber In FY 2013 about 573 000 mbf one thousand board feet of sawtimber was harvested. on BLM and tribal lands approximately 40 from BLM and 60 from BIA This timber harvest. was associated with about 460 million in value added provided 1 2 billion in economic. output and supported about 5 200 jobs Market prices do not fully reflect changes to various. ecosystem service values provided by forest lands Interior forestry lands provide various other. products besides sawtimber including biomass fuelwood poles posts and a variety of other. products e g seeds Christmas trees and mushrooms The economic contributions associated. with some of these products were accounted for in this report while others could not be. explicitly analyzed, Water Interior stores and delivers water for irrigation municipal and industrial M I and. other uses The value of water varies widely according to location type of use and climatic. conditions Interior s irrigation BOR and BIA and M I water activities are associated with 32. billion in value added about 60 billion in economic output and supported an estimated. 378 000 jobs Interior also delivers water to support in stream flows wildlife refuges and other. uses that are difficult to value fully, Scientific Data Investments in research and development promote economic growth and.
innovation ensure American competitiveness in a global marketplace and are critical to. achieving Interior s mission Investments in Interior s research and development will improve. U S strategic mineral supplies water use and availability and natural hazard preparedness. Sustainable stewardship of natural resources requires strong investments in research and. development in the natural sciences Scientific knowledge is not typically valued in markets and. hence is underprovided by the private sector, Grants Payments Grant and payment programs administered by Interior provided 6 2 billion. in value added economic contributions of 8 3 billion and supported employment of 70 000. jobs 3 Within these totals, o Indian Affairs grants to support tribal governments provided value added of 0 8 billion. economic contributions of 1 2 billion and supported about 10 000 jobs. o Grants and payments to Insular areas provided GDP impact of 0 9 billion and. supported employment of about 26 000 jobs, It is possible that grants and payments support some of the economic activity reported for other sectors. throughout this report We have not attempted to correct for this source of potential double counting. Executive Summary v,Fiscal Year 2013,This page is intentionally blank. vi Executive Summary,Fiscal Year 2013,Chapter 1 Introduction and Overview.
Background,The U S Department of the Interior s people and. Renewable Energy,programs impact all Americans Interior protects. America s natural resources and heritage honors our BLM s Western Solar Plan includes 19. cultures and tribal communities and supplies the Solar Energy Zones on over 285 000. energy to power our future The Department is the acres of public lands The area could. Fiscal Year 2013 i Table of 8 For additional information on economic contribution and economic impact analysis see Watson P J Wilson D Thilmany and S Winter 2007 Determining Economic Contributions and Impacts What is the difference and why

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