N.J. bill backs offshore wind development
New Jersey has become a national leader in solar power with the help of a market-based incentive program. Legislative leaders now want to expand the program to include offshore wind projects in hopes of making the state a destination for developers.
New Jersey has become a national leader in solar power with the help of a market-based incentive program. Legislative leaders now want to expand the program to include offshore wind projects in hopes of making the state a destination for developers.
No offshore wind turbines yet exist in the United States, but states are in a race to be the first and biggest producers.
A bill sponsored by Senate President Stephen Sweeney (D., Gloucester) and Minority Leader Thomas H. Kean Jr. (R., Union) would provide developers of New Jersey projects guaranteed revenue with which to secure financing.
The cost would be passed on to ratepayers.
Offshore power developers would earn credits for the megawatt hours they produce. Power suppliers in the state would be required to buy a certain number of those credits each year to satisfy state renewable-energy requirements.
Under a similar solar program started in 2005, New Jersey has become one of the country's largest solar generators, second to California.
With ample coastline, shallow waters, and the ports and skilled workforce to support the manufacturing and maintenance of the turbines, "New Jersey has enormous potential to become the state for offshore wind," said Erich Stephens, vice president of OffshoreMW, a subsidiary of the Blackstone Group, a publicly traded company.
OffshoreMW wants to lease an area 14 miles off Brigantine that could support up to 700 megawatts and to develop it in phases. It is one of four major proposals for wind projects off New Jersey's coast.
Though the cost is difficult to predict as the industry evolves, Stephens said, a 350-megawatt project could require about $1 billion.
"We really need this legislation to make the project viable," Stephens said.
The bill sets a goal of developing at least 1,100 megawatts of generation and using tax credits and grants issued through the state Economic Development Authority to attract manufacturers of offshore wind turbines.
The legislation would allow New Jersey to be "the place for development, growth, and job creation in this growing industry," Kean said.
The American Littoral Society, a group focused on coastal protection and based in Highlands Borough, has expressed concerns about the environmental impact of offshore wind development, but supports this bill because it requires the Board of Public Utilities to conduct an environmental review before issuing any public subsidy.
That's an important safeguard, said Tim Dillingham, the group's executive director. "Because wind turbines are emissions-free doesn't mean that they're impact-free," he said.
The bill passed the Senate Environment and Energy Committee by a 4-0 vote Monday and moved on to the Senate budget committee.
