Jobs & Economic Development Assessment

The report investigates the feasibility of utility-scale wind energy development in the waters offshore of New Jersey. The report found that offshore wind could produce approximately 3,000 MWh/yr for each installed MW of facility. Power densities of approximately 20 MW per square mile could be harvested while occupying less than 0.01% of the seabed within a project area. The study area encompasses 2,465 square nautical miles and extends up to 20 miles from shore. The cost of offshore wind energy modeled within the study area was found to be at the high end or above market price. Declining capital cost and other factors are expected to improve this situation over time. The existing transmission system along the coastline has sufficient capacity to accept significant amounts of new wind-based generation with the amount of this capacity dependent on the locations where wind projects are interconnected. Several major ports exist within or near the study area that are suitable to support the shipping, installation or O&M requirements of an offshore wind project, including the Port of New York and New Jersey, Atlantic City, and industrial ports accessible via the Delaware Bay and Delaware River in New Jersey, Delaware, and Pennsylvania.

Appendix E summarizes the results of the modelling of total economic impacts of offshore wind energy development in two phases: an investment phase and an operation phase. An investment of $1 million dollars would generate less than 8 jobs, $1.6 million in output, and $0.5 million in wages on average. But once operational, offshore wind would support annually a total of 48 jobs, $8.3 million in output, and $3.6 million in wages. The total state and local tax revenues would amount to approximately $97,953 on average per $1 million for the investment phase, and an annual total of $424,731 for the operation phase.

Appendix C includes a summary of the development of Maryland's Coastal Atlas for marine spatial planning, and the formation and activities of the federal-state Renewable Energy Task Force in offering siting recommendations.

The draft Greenhouse Gas Emissions Reductions Act plan comprises 65 strategies that are expected to reduce statewide greenhouse gas (GHG) emissions 25% from a 2006 baseline by 2020 to avoid the most severe impacts of climate change and contribute to the growth of green jobs and economic recovery. The identified offshore wind initiative is expected to generate annually 48.2 jobs, $8.3 million in output, and $3.6 million in wages (in its operational phase).

The proposed Maryland Offshore Wind Energy Act of 2012 would incentivize the development of offshore wind capacity by creating a carve-out in the stateﾒs renewable energy portfolio standard (RPS), to be set by the Public Service Commission (PSC), not to exceed 2.5%, between 2017-2022. To qualify, offshore wind projects would have to demonstrate positive net benefits to the state (including in-state jobs, health benefits, and electric rates), be located in federal waters off the coast of Maryland, and be priced below statutory safeguards for ratepayers.

Overview of the Public Service Commission's (PSC) final report's findings on whether and how Maryland might "re-regulate" its electricity markets. It includes graphs used in modeling the economic benefits and costs of offshore wind.

This final report studies whether and how Maryland might ﾓre-regulateﾔ its electricity markets. As part of its inquiry, the Public Service Commission (PSC) analyzed options for new electricity generation. The Commission concluded that offshore wind, while using a more reliable wind source than onshore wind and producing greater carbon dioxide reductions (747,000 to 975,000 tons per year, as compared to the full-year Regional Greenhouse Gas Initiative (RGGI) target for 2015 of 937,600), is roughly twice as expensive to build and operate and is thus projected to result in economic loss to ratepayers, not a net benefit. The Commission relied on Levitan & Associates' modeling of the terms of the NRG BlueWater Wind contract in Delaware.

The study determined that the total economic impact of the phased project would be approximately:
- 350 MW Project: $1 billion in sales, 8,700 job-years and $610 million in wages (in present-year dollars).
- 700 MW Project: $3 billion in sales, 17,000 job-years and $1 billion in wages. A preliminary evaluation of port facilities found that the Howland Hook Marine Terminal, located on Staten Island, is expected to be the most viable New York State option to host the project's construction-related onshore activities.

The report estimated the economic and fiscal impacts that would occur statewide and in Barnstable County and statewide during the manufacturing/assembly (M/A) and construction/installation (C/I) and operation phases of the Cape Wind project. Positive economic and fiscal impacts during the M/A and C/I phase include: creation of between 597- 1,013 direct, indirect, and induced jobs; increase in labor income of between $32-$52 million annually; increase in property income of between $9.2-$14.8 million annually; and, increase in corporate income tax revenues of between $1.3-$2.1 million annually. Positive economic and fiscal impacts during the operation phase include: annual permanent employment increase of 154 jobs; annual labor income increase of $6.9 million; personal income tax revenue increase of $346,500 annually; corporate income tax revenue increase of $113,900 annually; and, annual property tax revenue increase of $279,678.

Summary of the direct and indirect economic development impacts of offshore wind energy.