Transcript RELATIONSHIP BETWEEN FISHERIES AND OTHER USES – OFFSHORE WIND FISHERMEN’S ENERGY, LLC Daniel Cohen November 5, 2010 Roger Williams University School of Law Bristol, Rhode Island.

RELATIONSHIP BETWEEN FISHERIES
AND OTHER USES – OFFSHORE WIND
FISHERMEN’S ENERGY, LLC
Daniel Cohen
November 5, 2010
Roger Williams University
School of Law
Bristol, Rhode Island
 Fishermen’s Energy
 Origins and Goals
 Fishermen’s Atlantic City Windfarm
 1st in New Jersey, 1st in the country?
 Federal Waters - 350MW Project
 Environmental Monitoring Plans
 Fishermen’s Long term plans
 Issues for Marine Law Symposium
 Cumulative Impact on Fisheries
 Societal Values
 Ocean Zoning and Marine Ecosytems
Q&A
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Fishermen's Energy
• A community-based offshore wind developer
• Formed by principals of the New Jersey fishing
companies to enable the fishing industry to
participate in and invest in offshore wind energy
• Presenting a constructive program for alternative
uses of waters off the East Coast
• Agents of Change rather than Victims of Change
• Extending participation to fishing and maritime
industry participants from Maine to South Carolina
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Why Fishermen’s Energy?
…because it is where we work!
Why Offshore Wind?
• We go to sea to fish, but we fish for dollars
• Key is where we are starting: Coastal Mid-Atlantic – no
reasonable other options for renewable energy
– Limited onshore wind, no hydro, limited transmission from
out west
– Strength, consistency, reduced wind shear of offshore winds
– Shallow water, sandy sea bottom suitable for technically
mature monopile for foundations
– Proximity of offshore wind to key load centers rather than
transmission from Midwest
Fishermen’s Energy Investors are
principals of the fishing industry
www.atlanticcapes.com
www.lundsfish.com
www.essf.com
Sea Products, Inc.
www.vikingvillage.net
Cold Spring Fish & Supply Co.
Atlantic Shellfish
Dock Street Seafood
Truex Enterprises
www.thelobsterhouse.com
www.seawatch.com
Foxy Investments
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• Series A – Fishing Industry Investors
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– Jeff Reichle - Lund’s Fisheries, Inc.
– Keith Laudeman – Cold Spring Fish & Supply Company
– Rick Hoff – Dock Street Seafood
– Daniel Cohen – Atlantic Capes Fisheries, Inc.
– Barney Truex – Sea Watch International
– Martin Truex – Truex Enterprises, Inc.
– James Meyers, - Truex Enterprises, Inc.
– Marion Larson – Viking Village
– Kirk Larson – Viking Village
– John Kelleher – Foxy Investments
– Barry Cohen – Sea Products, Inc.
– Warren Alexander, Independence Fishing
Initial Investors are principals of leading east coast fishing companies with over
100 vessels, and facilities in Massachusetts, Rhode Island, New York, New
Jersey, Maryland, and Virginia
...People who earn their living from harvesting the sea!
Fishermen’s Energy Paradigm
 Siting to minimize impacts to fishermen while maximizing
offshore energy production and maritime safety
 Enabling members of the local commercial fishing industry
to invest directly in offshore wind development
 Creating profit for local businesses serving as vendors
both land-based and water-based
 Contributing to fisheries science in collaboration with
academic institutions and industry associations
 Offshore wind farms should mitigate losses to fishermen in
specific circumstances where impacts are localized and
cannot be adequately addressed by other options
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World-class Development Team
Team Member
Responsibility
AMEC
Project Engineer, Environmental Lead
AWS Truewind
Wind Resource and Modelling
Thomas Hoffman / Ballard Spahr LLP
NJ, Project, and Finance Counsel
Carolyn Kaplan - Nixon Peabody, LLP
Federal Permitting and Transmission
Cooper Levenson
Local Counsel
Fieldstone Private Capital Group
Investment Banker
Hughes/Zogby Center @ Stockton College
Public Perception/Intercept polling
Gabel Associates
Economic Assessment, OREC
Regulation
Rutgers University, Curry & Kerlinger, Lomax &
Associates, Braun & Associates, NorthEast
Ecological Services
Environmental Assessment
The Brattle Group / Energy Investors Advisors
Financial Forecasting and Modelling
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WHAT STARTED THE
PROCESS?
NJ BPU FEASIBILITY STUDY
• August 2003 BPU
commissioned AWS
Scientific, Inc. (AWS
Truewind) to study
offshore wind for NJ
• Published December 2004
• Report findings
– NJ has good offshore
winds
– Could generate most of NJ
renewable electrical needs
2004 GOVERNOR CODEY CREATES
BLUE RIBBON PANEL TO STUDY
OFFSHORE WIND WITH
RECOMMENDATIONS TO GOVENOR
CORZINE IN APRIL 2006
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No offshore windfarms built in Western
Hemisphere
Onshore wind, solar, and hydro cannot meet NJ
20% by 2020 goals
Only offshore wind has potential to meet 20%
goals for renewables
No one knows the impacts on birds, whales,
turtles, fishes, fishermen, or tourism
All impacts must be studied
One Pilot wind farm should be built with impacts
studied during construction and post
construction
After pilot, more wind farms could be built to
meet 20% goal for renewables
NJDEP COMMISSIONS
ENVIRONMENTAL
BASELINE STUDIES
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Competitive Solicitation in 2007
Geo-Marine of Texas
Commenced January 1, 2008
Stone Harbor to Seaside
Heights out to 20 miles
Avian, Marine Mammal, and
Turtle Baseline Studies
23 month study
Interim Reports on web
Final Report June 18, 2010
DEP Commissioner says – “No
significant impact on wildlife!”
October 7, 2007 NJ BPU Solicits Proposals
for up to 350 MW Pilot Wind Farm
Fishermen’s Energy surprises public on March
3, 2008 by submitting competitive proposal
– One of five proposals submitted
Unique - Only company to propose two
Projects
– Phase 1- 20 MW Demonstration State
Water Atlantic City Offshore Windfarm
– Phase 2 -350 MW Federal Waters
MMS Utility Scale Offshore Windfarm
– Fishermen Developers
Fishermen’s proposal marks NJ Paradigm Shift
– Governor seizes opportunity to accept
three proposals not one
– Changes one $19M grant to three $4M
Rebates for Met Towers in federal
waters
– Increases NJ Energy Master Plan goals
1000MW and 3000MW by 2020
Offshore energy projects will only be built with
societal choices – how to pay for energy?
Federal Policies – Carbon and Energy legislation
State Policies
New Jersey Offshore Renewable Energy Development Act
 Bi-partisan co-sponsors
 NJ Rate Payer Advocate supported the bill which passed on June 28
 Governor Christie signed bill August 19
 Authorizes 1100MW Projects
 Electric Price set for 20 years
 $100M Tax Credit for manufacturers locating in NJ Ports
Identifies a pilot wind farm to “jump start” industry
 “The board may approve a qualified wind energy project located in
territorial waters offshore of a municipality in which casino gaming is
authorized, and authorize offshore wind renewable energy
certificates for that project. Any such project shall be a nominal 20
megawatts and no more than 25 megawatts in nameplate capacity
and comply with the requirements set forth in section 4 of P.L….”
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Status Update - 20 MW Project State Waters –
Fishermen’s Atlantic City Offshore Wind Farm
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Environmental Groups Support
Note: Letter above from Clean Ocean Action; support letter also received from
Environment NJ and support from Sierra Club and other environmental orgs.
20MW Project: Strong Local Support
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Hughes Center
2009 Picture – Wind Mill at 3 Miles at Atlantic City Boardwalk
Korean War Memorial
© 2009, Zogby International
20MW Project: Locals and Tourists Both
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Hughes Center
Windmills and future travel plans
(Question 11 – asked of visitors only) If nine wind mills were located off the Atlantic City shore, please tell me how
likely you would be to visit the Atlantic City area in the future?
A majority of visitors say the wind mills would make them neither more nor less likely to
visit the AC area in the future.
© 2009, Zogby International
APRIL 29, 2010 INSTALLED MONITORING BUOY
• NJ BPU President Lee Solomon at ceremony
Boat Transects for Species Surveys
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Acoustic Monitoring
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Avian Radar on Steel Pier covering
State Water Site
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Geophysical / Geotechnical Investigations
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Wind Resource Assessment:
Floating LIDAR
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Wind Resource Assessment: Technology Program Validation
Fishermen’s Lockheed WindTracer delivered to Atlantic City ACUE
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350 MW Project Update
June 23, 2009 – MMS Interim Lease
Fishermen’s accepts U.S. offshore MMS Interim Renewable Energy
Leases from Interior Secretary Salazar and NJ Governor Corzine
350MW Project in Federal Waters
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Fishermen’s Energy long term plans
Agnostic concerning technology will seek
to use best available technologies
Build on NJ first projects success
 Plan for horizontal and vertical integration
Maine to South Carolina
 Fishermen participants – Series B raise
 Locations with Good Wind, Good Bottom,
and Good Interconnection
 State policies to develop and pay for
renewable energy
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Cumulative Impact of
Offshore Wind Farms?
• NJ Goal - 3000 MW off NJ (by
2020) at least 150 sq miles
• 600 to 1000 Turbines
• Foundations will become artificial
reefs with improved recreational
fishing, but …
• …negative impact on mobile gear
fisheries – dredges and nets - surf
clams, quahogs, fluke, squid, &
scallop fisheries
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Cumulative Impact of
Offshore Wind Farms?
• Google proposed - Transmission
Backbone – 6000MW
• 1200 to 1500 Turbines
• United Kingdom – 40% of electric of
England (including increased electric
vehicles) by ~ 2020 – 9000 Turbines
• US DOE studies 54 Gigawatts of
Offshore wind – 10,000 plus turbines
• How many offshore Backbones?
• Is this the future?
• Does society have other energy
options?
• Who is weighing the options and
their impacts?
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Magnuson, MMPA, ESA, MPA, Ocean Zoning
Societal Choices and Values as enacted by Congress
 Each act of Congress was imbued by a ‘special interest’ or focus
driven by a specific perceived ‘public value’
 Fish, fishermen, EFH, mammals, etc.
 Challenge is that a separation of values without prioritization does
not foster effective decision making process!
Which value trumps which value? How should values be prioritized?
Examples of values at cross purposes:
 Offshore Energy production as a priority of DOE
 Fishery Management Plans focus on fish while often wasting
energy and increasing public inputs (engines, paint, etc)
–ex. - the NEFMC recent vote to not allow leasing in the Scallop
fishery valued inefficiency of inputs over efficiency and
reduction of public inputs with a biological neutral action
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Ocean Zoning – Marine Spatial Planning –
Ecosystem Management
Presidential Order -
three stakeholder groups knee jerk reaction to a
complex issue results in a Presidential Order which will frustrate all three
Commercial Fishing Interests - Opposed to Ocean Zoning –
 Perceive the only result will be ‘zoned’ out without compensation for loss of
catch or efficiency
 Ecosystem Management can only work with good science, which is not being
funded by the public – so the public has a perception there is knowledge which
to the needed degree does not exist to implement Ecosystem Management
Offshore Wind Industry – Opposed to Ocean Zoning
 Belief that additional bureaucratic level will delay development based on existing
federal track record
 2005 Moratorium – 18 months became 44 months for DOI rules
 Current DOI potential permitting timeline up to 7 years
Environmental Community – Wanted Ocean Zoning but could not develop
consensus with the other stakeholders - used political advantage for
Presidential Order with a model that may prove to be unworkable
 No clarity of legislative or regulatory authority, without redress by others
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What will the future look like?
Will offshore energy be a major component of the East Coast
energy needs?
How will Ocean Zoning be implemented?
How will the various competing values be prioritized?
How will stakeholders who are impacted be accommodated?
Are legislative fixes available that could prioritize issues,
reduce timing, reduce collective costs (industry and
government), and make bureaucracy more efficient?
Can fisheries, ESA, MMPA, EFH, energy, and other
‘stakeholders’ be managed in one federal construct or in some
coordinated manner with a priority of values?
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Fishermen’s Energy looks forward
to working together with all
stakeholders ………….
Fishermen,
Federal and State Managers,
the environmental community,
the financial community,
and all of society
…..to responsibly
develop and manage the
offshore natural resources off
our coasts!