Library from New Jersey
Cape May-based Fishermen’s Energy on Friday lost another attempt seeking to build windmills three miles off the coast of Atlantic City. A state appeals court sided with the Board of Public Utility’s authority when it repeatedly rejected the offshore wind project on concerns it would be too costly for everyone who pays an electric bill.
Pro-solar New Jersey environmental groups have been sharply critical of the plan. They contend that green energy shouldn't come at the expense of a rich forest ecosystem, and point to the theme park's nearly 100-acre parking area as a better location for the facility.
But while the bill has bipartisan sponsorship — It's sponsored by state Sens. Bob Smith (D-Middlesex) and Christopher "Kip" Bateman (R-Somerset) — it's unlikely to be law any time soon. Supporters and sponsors admit that if it makes it as far as Gov. Chris Christie's desk, they expect him to veto it.
A plan that promised to bring hundreds of jobs and alternative energy to New Jersey -- including construction at the Port of Paulsboro -- is indefinitely stalled as the federal government and the Board of Public Utilities have slowed down momentum for wind energy projects.
A spokesman for the governor did not respond to a request for comment, but state officials have said the project by Fishermen’s Energy is too financially risky. ...offshore wind farms are extremely costly to build, with some companies estimating price tags of more than $1 billion to build 90 turbines off the New Jersey coast.
The plan, rejected three times by New Jersey utility regulators, is the subject of a court appeal due to be heard in March. But Fishermen's Energy is powering ahead with the plan anyway in order to take advantage of federal tax credits that expire at the end of the year.
In the Fishermen’s Energy case, homeowners and businesses would be the ones subsidizing the wind farm, through state agreements to buy the power at rates substantially above the cost of electricity in the open market. Wind turbines are a mature technology deployed all over the world, including much at sea, so the “demonstration” aspect of the project is not to show they work but to show sufficient subsidies and political gain can be lined up to do a lot more windmill development off the East Coast.
The state on Friday again rejected a pilot wind farm project off the New Jersey coast, arguing that the company's financial plan is unsound and would require a state subsidy so large it would make the energy produced too costly for ratepayers. The company vowed to appeal.
Backers view the bill as a marker that will be eventually accepted by a new administration, once Christie’s term ends in January 2018 -- or sooner, if the governor decides to run for president and resigns his office. “We are talking about policy over the next 36 years.’’
While this newest development ends the legal battles between the borough and the sewerage authority for now, it remains unclear whether the authority, which has already spent nearly $6 million, will continue to pursue construction of the wind turbine. ...while the case was pending, the turbine was stored at a facility in Newark that was flooded during Hurricane Sandy in October 2012. ...the turbine’s generator, its control panel and the blades were damaged.
BPU commissioners have said the “Offshore Renewable Energy Certificates” (ORECs) — which are required to recoup the millions of dollars investors would spend on the wind farm — may be costlier than projected. That would leave ratepayers on the hook for hundreds of millions of dollars, the BPU contends.
The rules, allowing developers to earn Offshore Renewable Energy Credits (ORECs) for the electricity their wind turbines produce, were supposed to be in place by March 2011. ...BPU and offshore developers cannot agree on how the financing mechanism should be structured.
Components for the windmill delivered Thursday morning to the Wayne Auto Spa included a pole on which the turbine was to be mounted that didn't match manufacturer plans for the concrete-slab base.
“We were not involved in those conversations [about the lease areas] during the call period,” Dillingham said. “Stakeholders of all types, not simply industry or developers, [should be] included in these conversations about the decisions that are going to be made.
Union Beach will ask the state Supreme Court to review a lower court decision that restrains the borough from enforcing an ordinance regulating the construction of wind turbines.
New Jersey has been trying to extricate itself from the Regional Greenhouse Gas Initiative since 2011, when Christie first suspended participation in the program. But his administration had to restart the separation process this year after the state Superior Court ruled that it had provided insufficient opportunity for public participation.
A proposal scheduled for publication Monday in the state register would repeal rules associated with the Regional Greenhouse Gas Initiative, a cap-and-trade program New Jersey joined other states in implementing in late 2005. Christie announced in 2011 that he would withdraw the state from the program, which the Republican governor said had been ineffective.
The federal government has awarded $47 million to sweeten the deal for a $188 million project the Garden State has deemed too risky for ratepayers.
Despite receiving a harsh blow from New Jersey regulators in March, offshore wind developer Fishermen's Energy is showing more signs that it intends to keep pushing forward with its 25 MW Atlantic City demonstration project.
A New Jersey company is appealing the state's rejection of its plan to build a wind farm off the coast of Atlantic City. Fishermen's Energy filed an appeal Monday with the state Board of Public Utilities, saying the agency erred when it rejected the plan last month.