Informed Investment: Enhancing Amtrak’s Northeast Corridor with a Comprehensive Economic Impact Analysis

New Acela Fleet Testing on the Northeast Corridor. © Amtrak Media.

The Northeast Corridor (NEC) is a vital transportation artery, connecting major cities from Boston to Washington, DC, over its expansive 450-mile span. Recognizing the need for collaborative regional planning and strategic development, the Northeast Corridor Commission (the Commission) is at the forefront of efforts to stabilize the corridor, increase accessibility to underserved communities, and lay the foundation for future growth.

In pursuing sustainable and high-performing rail transit, especially in the face of climate change, the Commission has undertaken extensive planning for over 300 service improvements and maintenance construction projects over the next 15 years. The challenge lies in quantifying and spatially locating the impacts of these projects to inform investment prioritization and workforce development decisions. Furthermore, the Commission needs to concisely communicate this complex data to municipalities and the public.

The Northeast Corridor. Image courtesy of the Northeast Corridor Commission.

Achieving the CONNECT NEC 2037 Plan

Building on the ambitious CONNECT NEC 2035 plan released in July 2021, the Commission engaged Karp Strategies in collaboration with project lead Arup to support the first update, CONNECT NEC 2037. This update will guide capital investment decisions through rigorous research and analysis of travel demand and economic impacts.

Karp Strategies, taking the lead on the economic impact analysis, was tasked with quantifying the estimated value and earnings of construction jobs generated by these rail infrastructure projects. In addition, Karp Strategies brings a holistic planning lens to ground these economic impacts in social analysis, emphasizing how the planned investments support long-term resiliency, economic development, and job creation, particularly in traditionally underserved communities.

Economic Impact Assessment and Lightcast Analysis in Action

Karp Strategies utilized Lightcast, an advanced input-output model, for this complex economic analysis. Lightcast's multiregional impact analysis capacity is able to capture intricate relationships between industries and regions. This tool is useful, as Karp Strategies’ approach goes beyond merely quantifying direct, indirect, and induced jobs and spending, resulting in a more comprehensive understanding of the broader economic consequences of investment projects.

Along with the direct improvements to rail operations and terminal connectivity, the ongoing investments in the NEC will trigger substantial regional and local benefits. Karp Strategies followed a multi-level approach to gather data and quantify the economic ripple effects of NEC investments. While understanding job and spending data is critical to evaluating NEC projects, the public also wants to understand how these investments will impact communities and respond to long-term climate conditions. Our analysis went beyond the conventional job and economic impact projections in order to emphasize how communities across the corridor will benefit from improved transit times, increased accessibility for disadvantaged communities, resilient infrastructure, and environmental justice considerations. 

The final CONNECT NEC 2037 represents the collective effort of the Arup Team, NEC staff, and corridor partners. Using Karp Strategies’ economic data, the report effectively communicates the operational, economic, and social benefits of the C37 plan to policymakers, elected leaders, and the public. The report also incorporates a comprehensive analysis conducted by the Arup team, presented visually through illustrative infographics and diagrams. 

You can read the full CONNECT NEC 2037 plan here.

Want to learn more? Connect with our team.

Envisioning a Clean Energy Future: Insights from the City and State’s Clean Energy Summit

Recently, Karp Strategies had the privilege of participating in the City and State’s Clean Energy Summit, which shed light on New York's path towards a zero-emission electricity sector by 2040 and the ambitious goal of achieving 70 percent renewable energy generation by 2030. The summit featured comprehensive discussions on New York's multifaceted approach to combating climate change across diverse industries, spanning strategies from enhancing building energy efficiency to fortifying coastal resilience against climate impacts.

The dialogues revolved around pivotal themes, encapsulating New York's holistic approach to climate action. Let's delve into these central themes, mirroring the prevalent discussions throughout the conference.

Achieving Climate Smart Communities

The discussions during the summit delved into the idea of creating climate-smart communities driven by a persistent pursuit of efficiency. New York's dedication to utilizing alternative and efficient energy sources is crucial in nurturing these environmentally friendly, more sustainable, fair, and resilient communities. The envisioned zero-emission electricity system aims to fuel homes, offices, schools, healthcare facilities, and transportation with renewable energy sources, strengthening urban areas and communities against environmental adversity caused by climate change. The summit focused on policy frameworks like CAP and Invest, highlighting the critical role of private investments alongside government support in achieving New York State’s ambitious energy objectives.

Navigating the Offshore Wind Landscape

A significant highlight of the summit was the spotlight on the offshore wind industry—a linchpin in New York's pursuit of cleaner energy sources. The burgeoning industry in New York promises to distribute economic advantages equitably among workers, utility customers, and local communities. 

However, the discussions highlighted significant hurdles: workforce shortages and limited supplier availability. Gregory Lampman from NYSERDA outlined a response strategy focusing on recent Requests for Information (RFIs) to source supply chain investments and expedite Requests for Proposals (RFPs). This approach emphasizes the necessity for cost-effective planning under the Offshore Wind (OSW) Master Plan to navigate the industry's current landscape characterized by inflationary pressures and developers renegotiating contracts.

Bridging Gaps and Pioneering Equitable Development

Amidst the dialogue about New York's energy landscape, the spotlight fell on the impact on small businesses and the average consumer. Ensuring an inclusive transition, mitigating cost impacts, and addressing affordable housing in policy decisions took center stage. Rebecca Karp, our CEO and Founding Principal, emphasized the significance of comprehensive workforce development programs, ranging from early career exposure in schools to advanced training initiatives to bridge skill gaps and ensure equitable career progression.

She stressed the transformative potential for New York to become a national model for clean energy workforce development. She discussed various initiatives, including the Green Economy Fund, which allocated funds from a transmission project to support inclusive green workforce development. Karp also highlighted the Growing Green Initiative, a market analysis that connects BIPOC businesses to green economy opportunities, addressing barriers small and minority-owned businesses face. Additionally, she presented case studies such as NYSERDA's Offshore Wind Youth Action Program and the CUNY Bridges to Offshorewind program, illustrating the importance of awareness, education, and fostering transferable skills in the clean energy sector.

The summit made clear that clean energy development is a long-term endeavor, requiring a focus on strategic, lasting gains over short-term challenges. Solutions proposed by Karp Strategies involve developing workforce and minority- and women-owned business enterprise capacity, emphasizing transferable skills, and understanding the long timelines associated with transformative projects. Despite setbacks, such as Ørsted's recent cancellation of New Jersey OSW projects, Karp Strategies remains optimistic about the industry's future, emphasizing the need for ongoing preparation and commitment to equity. The critical takeaway is to maintain a relentless focus on equity and invest deeply in people to ensure success as the clean energy economy grows.

How Local Governments Can Maximize Clean Energy Investments

Cities and states are closely paying attention to the economic opportunities offered by the clean energy industry. Large-scale investments can translate to significant economic growth that local municipalities are eager to bring to their constituents. Karp Strategies has guided a wide spectrum of offshore wind stakeholders–from private developers and suppliers to state and local governments–to advance complex clean energy initiatives. Below are effective cross-sector strategies to equitably maximize the benefits of offshore wind:

Offshore Wind: Demystifying the Numbers

In the realm of economic growth and job prospects, distinguishing between genuine opportunities and inflated numbers can be a daunting task. Regional economies demand more precise projections to facilitate strategic planning, prepare workers, as well as establish training and manufacturing facilities.

That's where our Economic Impact Assessment services come in. Leveraging advanced input-output modeling tools such as IMPLAN, Lightcast, RIMS II, and JEDI, we assist our clients in charting the cascading effects of their investments and initiatives across various sectors, industries, and communities.

Our goal is not just to measure the economic impacts but to help our clients design strategies that align with their values and priorities. We collaborate to select the most suitable tools tailored to their industry and reporting needs—enabling us to assess the potential benefits and costs of diverse projects or initiatives, estimate the return on investment, and identify potential risks and trade-offs.

Utilizing Economic Impact Analyses to Advance Offshore Wind in New York

Our economic impact assessments play a fundamental role in assisting our clients in building more resilient, sustainable, and inclusive economies, aligning with our core mission.

In our recent work supporting several offshore wind developers and manufacturers vying for NYSERDA’s third solicitation, Karp Strategies took the lead in developing comprehensive projections for the economic and workforce development impacts of the proposed projects.

This involved generating estimates for the anticipated job creations, the engagement of minority- and/or Women-owned businesses, and the accessibility of jobs for residents in designated disadvantaged communities. Our quantitative assessments, coupled with extensive economic and stakeholder research, played a crucial role in shaping our clients’ New York Jobs and Workforce Plans and OEMs’ Supply Chain Investment Plan(s).

Securing Meaningful Community Benefits Agreements

Municipalities should broaden their focus beyond just creating jobs and economic outputs when considering the impact of investments. A crucial aspect that demands attention is the substantial community benefits investments being made, particularly in historically underserved communities where environmental injustice has been prevalent.

However, it's essential to recognize that not all CBAs are created equal. At Karp Strategies, we believe that CBAs must be co-designed with impacted communities and stakeholders. This collaborative approach ensures that investments are created equitably and are tailored to meet the diverse needs of the community.

When working with public, private, and community stakeholders to develop holistic community benefits strategies, we keep several core principles at the forefront of our work:

• Diverse representation. At the outset of any community benefits initiative is to develop an understanding of the full landscape of actors with a demonstrated history and connection to the community. Representatives should come from many different groups, and it’s the responsibility of the entity making the investment to conduct deep outreach to understand who should have a seat at the table.

• Upfront and ongoing inclusion. Engagement is a cornerstone of effective and successful community benefits strategies—from the initial steps as the process is being developed, through negotiations on the final structure of programs and investments, to ongoing community input as these strategies are implemented.

• Understanding economic impacts. Conducting an economic impact analysis is critical to understanding how the intersecting challenges—both historical and current—influence the way the impacts of major projects and investments manifest across communities.

• Centering equity. Environmental justice communities, disadvantaged communities, and those who have borne the burden of decades of pollution and environmental racism must be at the forefront of the transition to a clean energy economy—in terms of inclusion, impact, and benefits.

• Structured implementation. We focus on the long game when developing community investment and benefits strategies, incorporating accountability benchmarks, outlining the strategic dispersal of funds, and planning for the long lifetime of projects.

What do community benefits strategies look like in action?

Karp Strategies is proud to showcase two recent examples of community benefits work highlighted below—the development of Equinor Wind US’s Offshore Wind Ecosystem Fund and the Champlain Hudson Power Express (CHPE) Green Economy Fund.

Equinor Wind US: Offshore Wind Ecosystem Fund

In 2022, Karp Strategies worked with Equinor Wind US to conceive and initiate the company’s community benefits strategy, setting it up to deliver on the $47 million in community benefits and $25 million in environmental research commitments made to New York State. As a result of this collaborative effort, the $5 million Offshore Wind Ecosystem Fund was launched. This fund was purposefully created to make targeted investments in historically marginalized communities and environmental justice areas within New York City.

Champlain Hudson Power Express (CHPE): Green Economy Fund

Karp Strategies, with our partner Empowering Work Advising (EWA), launched and is administering the $40 million Champlain Hudson Power Express (CHPE) Green Economy Fund. This government-sponsored project is designed to support disadvantaged communities, low-income individuals, and transitioning fossil fuel workers in accessing and building careers in New York State’s green economy. The Green Economy Fund will finance workforce development programs and organizations providing wrap-around services that support workers in these target communities to access good jobs in the green economy.

Let us know how we can support you!

Karp Strategies' community benefits practice draws on our expertise across engagement, impact analysis, and strategy design to help our clients develop successful and equitable strategies that center the needs of diverse communities. Let us know how we can support your work!