Punch list
 | Opportunities abound for Maine's construction industry - but only if we can seize them
It is often said that we all talk about the weather, but nobody does anything about it. As we all take a few moments to enjoy the dog days of summer, the construction industry is moving with a sense of great urgency and purpose. Mainers, especially those in the construction industry, know that the warm-weather months are short, and that we must make the most of every day in order to be ready for winter.â&Copy;
In addition to the cold winds and snow that typify the Maine winter, we’re facing another kind of storm brought on by skyrocketing energy prices, which are increasing operating costs, driving capital from the country at an alarming rate and threatening the lives of our fellow Mainers as they struggle to pay $5 per gallon for heating oil and diesel fuel. â&Copy;
Out of this looming energy crisis, however, comes opportunity. A confluence of circumstances has given us the potential to move Maine forward — but only if we are able to recognize and seize it. Currently, 74% of the electricity we use in Maine is generated by oil or natural gas. Our need as a state and as a nation to change the mix of fuels we’re using to heat our homes, generate electricity and travel leaves Maine better positioned than most to adapt and even prosper. â&Copy;
Growing demand for renewable electricity in southern New England has resulted in a great opportunity for Maine if we can upgrade our transmission system. These investments mean jobs, tax revenue and stabilized electric rates if we’re smart enough as a state to skim a little off the top as this green power leaves our state bound for the megalopolises to our south. Best of all, 92% of the project costs will be borne by out-of-state rate payers. â&Copy;
Looking around, we can find a number of projects made possible by the change in global energy costs. â&Copy;
These projects include:â&Copy;
- Central Maine Power’s proposed $1.4 billion transmission upgrade, which is needed both to allow new generation sources to come online and to ensure the reliability of our current system;â&Copy;
- Maine Public Service’s $500 million transmission system upgrade, which will tie the MPS service area to the rest of Maine, thus enhancing reliability and allowing for new generation capacity;â&Copy;
- More than $2 billion worth of wind generation;â&Copy;
- Two potential liquefied natural gas terminals Down East;â&Copy;
- And the proposed privately-funded $1 billion East-West highway, which will give Maine its own on-ramp to important Midwestern and world markets.â&Copy;
The upshot is that these projects will mean thousands of new jobs in new areas for Maine’s construction industry. Central Maine Power projects 8,000 jobs for the utility upgrades alone. Other Mainers are employed in increasing numbers building wood-fueled heating appliances, wood pellet factories and oil refinery components.â&Copy;
On another front, a group of interests is working on a plan to address Maine’s housing stock, which is both the oldest and the most reliant on home heating oil in the nation. Our first goal must be to ensure that none of our fellow Mainers freeze this winter. After the frost comes out of the ground next spring, however, we should begin investing in our state’s housing stock, rather than simply trying to keep our most vulnerable citizens from succumbing to hypothermia.â&Copy;
What is so striking is that there are so many opportunities for our state to invest and grow right here at home. Many of these opportunities are counter-cyclical — that is, we’re seeing them at a time when energy costs appear to preclude other types of economic growth. In this case, the opportunities are coming right at us. We only need to embrace them. â&Copy;
What these projects have in common is that they meet a compelling need, money exists to finance them, they will provide jobs to Maine workers and companies, and most importantly, they will speed our transition to an economy that is less susceptible to the adverse impacts of $140-per-barrel crude oil.â&Copy;
Each of the projects referenced above is complex and has several important ongoing regulatory or legislative challenges associated with it. For the construction industry, the common thread is that they create the opportunity to keep our people working. To make the benefits of these projects real for all Maine people, we need to recognize the seriousness of the challenges we’re facing and create the expectation among policy makers and investors that the status quo is not sustainable. â¨To that end, when you encounter candidates for state and federal office, be sure to tell them that we need their proactive leadership to get these types of projects built. If they will take the lead and set the tone for state and federal regulators, then we may actually be able to change the weather in Maine.
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