Offshore Wind Energy is a Breeze: Economic Benefits

By Chloe Taylor, Katrina Vaitkus, Justin Stacey, Zachary Felch, Amanda Speciale, Katie DeVoss, and Miranda Mlilo
Who we are:

Left to right: Chloe Taylor, Katrina Vaitkus, Zachary Felch, Justin Stacey, Miranda Mlilo, Amanda Speciale, and Katie DeVoss

We are a group of University of Maryland students majoring in Environmental Science and Policy. For our senior capstone project, we are researching the impact of offshore wind energy  to help CCAN prepare for the upcoming public comment period for the proposed Ocean City US Wind Project. We will be creating a series of blog posts to provide information about different aspects of offshore wind and its impacts on greenhouse gas emissions, the economy, and wildlife. This is the second of our three part series.

There seems to be a common misconception that offshore wind energy might hurt Ocean City’s economy. This could not be further from the truth! In fact, research suggests that an offshore wind farm may actually bolster very important sectors of the economy such as tourism, real estate, and job creation.
Tourism and Real Estate
Many polls have surveyed beachgoers and gathered data about their vacationing preferences after the theoretical construction of offshore wind turbines. The results were generally positive for offshore wind, and showed either no change in beach preferences, or an increased likelihood that tourists would visit the area. For example, one Goucher poll from fall 2017 surveyed Marylanders to find out how the proposed offshore wind project would impact whether they choose Ocean City as a vacation destination. Out of 671 Marylanders, 75% of people said that the offshore wind farm would make no difference about where they choose to vacation. Additionally, 12% said that the presence of a wind farm might make them more inclined to visit, out of curiosity and interest.
This sentiment was further emphasized by Jessica Willi, Executive Director of the Block Island Tourism Council who stated that after the construction of the Block Island offshore wind farm, “We’ve definitely seen more people on the island that have come just to see the wind farm; we’ve had businesses sprout up on the island, boats taking people out just to see the wind farm.”
Additionally, a French study found that turbines will bring an increase in biodiversity and wildlife. This will expand the tourism market, bolstered by the desire to view, learn about, and interact with wildlife through activities like observational boating and diving around turbine foundations!
Furthermore, it is unlikely that there will be any negative impacts on real estate prices. While there is no existing data regarding real estate impacts from offshore wind farms, there are studies from onshore facilities located close to homes indicating that real estate will not be affected. Since offshore wind farms are located several miles off of the coast and have negligible visibility, data showing no effect from turbines located close to homes onshore would likely support a lack of impact for offshore turbines far from homes and other properties.  In fact, benefits from tourism and lower electricity costs might even increase property values.
A 2013 study by Ben Hoen and colleagues found no statistical evidence that wind turbines affected nearby home prices in either the post-announcement/pre-construction or post-construction period. They found that while sale prices might temporarily decrease following the announcement of construction, labeled the “anticipation effect,” these decreases will wear off following construction.
Job Creation
US Wind plans to invest millions of dollars into Baltimore’s industrial and manufacturing sector. This substantial investment into the local economy is the root of the job opportunities for the city from the offshore wind project. Revitalization of the manufacturing industry could lead to the creation of hundreds of jobs in the greater Baltimore area, contributing to the 3,580 jobs the Public Service Commission of Maryland has required US Wind to create in the state. At every step of the process, employment opportunities abound. Skilled workers from numerous disciplines are essential to upgrade the facilities at Tradepoint Atlantic (at Sparrows Point) and other locations. An independent study for the Department of Energy forecasts the creation of up to 600 jobs and 33 million dollars in compensation during this stage alone. After the improvements are complete, over 150 tradespeople will likely be employed at the fabrication facility constructing steel jacket foundations — these jobs will continue even after the Maryland offshore wind project is complete as the East Coast’s offshore wind industry grows. Such professions can pay over 20 dollars an hour.
Not only does Baltimore stand to gain significant employment opportunities, so does Ocean City. As the closest city to the project, there is a unique chance to participate in the construction and upkeep of the wind turbines. Specialized workers from crane operators to electricians may be called on to help in the construction of the turbines while receiving payment upwards of 25 dollars an hour on average, if not more. Perhaps the most interesting job prospect is the chance to become employed as wind turbine service technicians. With a lifespan of 25 years, the turbines will require constant check ups and maintenance by locally-based technicians. Community colleges and technical schools are the key to getting a foot in the door with a 2-year degree or 1-year certification in the field. With a 96% job outlook in the coming years, the time is now to enter the profession.
Economic Benefits in Maryland
This project will also generate millions of dollars for Maryland’s economy, providing more jobs and emerging business investments. Maryland created the Maryland Offshore Wind Business Development Fund to encourage future project development. US Wind is required to contribute $6 million to this fund between 2017-2019, which will help other businesses emerge and profit within this novel industry. US Wind has pledged to invest 26.4 million dollars in upgrades to the Tradepoint Atlantic port facility, and an additional 51 million dollars in another steel facility, further solidifying their commitment to the local economy and job growth. US Wind is required to spend at least 19% of total development and construction costs within Maryland. Their studies estimate this in-state expenditure to be $610 million during development and construction, and another $744 million (valued in 2017 dollars) in the operation phase. This offshore wind farm will provide millions of dollars to the state’s economy and help advance business interests.
In addition to these state benefits, Marylanders do not need to fear exorbitant electricity costs. There may be some concern over how the state will offset the costs to build the project, such as raising the price of electricity. However, Maryland law prohibits residential rates from exceeding an additional $1.50 per month (valued in 2012 dollars) through 2040. For businesses and other non-residential payers, this increase is less than 1.4% annually. While this is a small increase, it is still advantageous to build the wind farm, as it helps the state comply with its renewable energy standards. Additionally, the cost of electricity should decrease over time as this project encourages future offshore wind projects in the pipeline. In one National Renewable Energy Laboratory study, they found the cost of electricity in the mid-Atlantic will decrease through 2027 with the installation of offshore wind projects currently in the pipeline. Compared to 2015 prices, the data reflect a 41-52% cost reduction in 2027 per megawatt hour to the mid-Atlantic! Thus, constructing this project will only have small rate increases to Maryland ratepayers, but will decrease future regional energy costs while meeting our renewable energy goals.
In conclusion, offshore wind has the potential to increase tourism and property values in Ocean City. The project will create jobs, stabilize electricity rates, and increase Maryland’s Taylor x revenue. Stay informed, get involved, and let our government know that you support offshore wind in the state of Maryland!
SIGN THIS PETITION TO THE BUREAU OF OCEAN ENERGY MANAGEMENT URGING THEM TO APPROVE OFFSHORE WIND IN MARYLAND!

Learn More: Bringing Offshore Wind to Maryland

Creating a Clean Energy Future by Eliminating Trash Incineration

By Jackie Apel
Rockville, Maryland
In light of the Maryland Department of Energy’s new rule requiring waste incinerators in the state to reduce their harmful air pollution, this is an excellent time to consider ways for Baltimore and other cities to manage their waste disposal processes. The Baltimore City Council has issued a resolution to improve upon its Solid Waste Management Master Plan, asking consultants to bid on a contract to develop a new plan. These new resolutions and limits on emissions are important first steps towards reducing air pollution, but environmentalists have expressed concerns that these steps do not go far enough to adequately address our clean air problems.
Residents who live near incineration facilities are all too familiar with the dirty air that they breathe each day. Recently, I heard testimony from a resident of Baltimore who recounted how many of her neighbors had been exposed to dangerous chemicals as well as air from the BRESCO incinerator, and had developed lung cancer as a result. While it is encouraging that the incinerators are taking steps to lower their output of nitrogen oxides, it is also a known fact that incinerators tend to be placed near, and disproportionately impact, lower income communities of color. A recent scientific study by The American Chemical Society reported that nitrogen oxides directly contribute to respiratory diseases like asthma and COPD; lung cancers; heart disease; birth defects, and developmental problems in children, with impacts to the brain and nervous systems. Nitrogen dioxide is a hidden health hazard, and particulates can become airborne and travel long distances, with microscopic particles penetrating deeply into the lungs. During the recent Supreme Court confirmation hearing, we also heard testimony from a teenager who suffers with asthma about the dangers of air pollution, and its consequences for human health, and the importance of not revoking our environmental regulations. Many are rightfully concerned as we watch the Trump Administration move in a fateful direction, away from regulation of harmful toxins, to allowing companies to proliferate pollution of our air and water. Combined, there are many sources of air pollution that affect our health on a daily basis, as well as contribute to climate change.
What can we do to minimize our trash pollution and create a cleaner environment? Maryland can begin by passing the Clean Energy Jobs Initiative, which would phase out incineration as a Tier 1 source in the state’s Renewable Portfolio Standard. Improving our technology and limiting emissions will help, but we also need to look at the whole picture of waste management— from product design to disposal—and find ways to move towards a “zero waste” plan like Oakland, California has done, where 1,000 jobs were created. Pollution costs the U.S. billions in healthcare, and is adversely affecting our planet’s weather. We need to embrace new ways of thinking about waste disposal, and do everything we can to limit our toxic air. We can do this sooner rather than later, by following a zero waste and clean energy plan!
Submit a comment today! Urge the MDE to lower pollution from Baltimore’s incinerator.

What Will Accelerate US Solar Adoption?

Written by Kyle Pennell from PowerScout (a marketplace that lets you compare multiple quotes for home solar installations)

While the United States solar industry continues to grow, creating sustainable power and job opportunities nationwide, it has a long way to go before it is on par with European countries like Germany, where solar is cheaper and more widespread.
The United States can close the solar gap by examining the solar learning curve, increasing state-based government incentives, embracing community solar, and passing laws which will see an increased solar carve out applied to the Renewable Portfolio Standard of each state.

The Solar Learning Curve

Solar hardware has been falling in cost consistently since 1977. Back then, at the beginning of the Jimmy Carter presidential administration, solar panels sold at a rate of $76.67 per Watt. Fast forward to today, and you see panels selling for less than $1 per Watt. The price of panels has fallen more than 50% since 2008, and over 100% since 1977 (more on these costs at PowerScout)
By accurately predicting this ongoing decrease, the solar industry can focus advertising efforts and plan for increased production brought about by demand. But how does one predict such things? In the solar world, it’s actually quite easy.
The solar learning curve, or experience curve, is a trackable industry pattern in which for every cumulative doubling of production volume, solar PV hardware has seen an average decrease of 20%. This is a symbiotic relationship which perfectly explains solar cost trends. As more installations occur, the price falls. As the price falls, more people book installations.
Tracking the learning curve will help solar companies focus their marketing efforts and anticipate demand.

Import Tariffs Could Cause Solar Disruption

While states should be embracing laws that help the spread of solar adoption, they should also be fighting against those that would hinder it.
In January, a new situation arose which could threaten the spread of solar adoption and offset the industry’s steady price decrease. The International Trade Commission ruled last year that solar panels produced in China serve as a detriment to the American solar production industry. This ruling gave the White House authority to impose increased tariffs on imported panels, thus potentially causing the price of solar systems in the US to rise. US President Donald Trump passed those tariffs into law on January 22, 2018. Now, all imported solar panels will see a first year tariff of 30%, followed by 25% in the second year, 20% in the third year, and 15% in the fourth. This first year tariff will add 10-15 cents per watt onto every foreign panel, increasing the price of a 7 kW system by over $1,000.   
While this could, in theory, benefit domestic solar panel producers who struggle to compete with China’s low prices, it could stand to offset the nation’s renewable energy efforts. In fact, the SEIA estimates that the decision will actually cause the loss of 23,000 American jobs.
Affordability equates to adoption, and by placing roadblocks in the path of progress, the United States could start to see the European solar market widen the gap.

Pass Laws to Increase Solar Carve Outs

Many states have what is known as a Renewable Portfolio Standard, which requires a set increase in the amount of their renewable energy production. Each RPS contains a solar carve out, which sets a percentage goal for power generated by solar panels.
In Maryland, where the RPS is 25% by 2020, the solar carve out is only 2.5%. Newly proposed legislation, spearheaded by local non-profit organizations is calling for an increase of the state’s solar carve out to 14.5%. They are also seeking to up the state’s RPS to 50% by 2030. Such a dramatic increase would do well to spread the adoption of solar throughout Maryland.
States who increase their solar carve out are helping to spread solar adoption to the masses. The Chesapeake Climate Action Network, who first called on the Maryland state government to enact these increases, stated that such a change would provide an investment in health, climate, jobs and equality.

Community Solar

Not everyone can install a solar system on their roof. Citizens with unsuitable roofs or rental properties can still take advantage of solar savings with a community solar program.
Community solar is popping up all over the country, wherein individuals can subscribe to energy generated by a large communal solar panel farm. The power generated by the panels you are renting is then applied to your electric bill. Community solar allows for the use of renewable energy, even for those who cannot afford installation costs.
Some states, like Maryland, have proposed pilot programs to bring community solar initiatives to its residents, with the goal of bringing the benefit of solar power to low and moderate income users. The Chesapeake Climate Action Network has also been working hard to increase community solar programs throughout Maryland, dubbing it “Solar for Everyone.”

More Incentives Nationwide

Government incentives help to make solar energy more attractive to homeowners. Unfortunately, incentives tend to vary state by state. Thus, even though many states have ideal conditions for solar power, because the state government has not embraced this technology, we see less rollout.
Take Michigan for example. Detroit sees average period of sunlight in excess of four hours per day. That, coupled with the state’s lower temperatures make for an ideal solar environment. But with virtually no government aid, Michigan homeowners see far less solar penetration than states such as New York and California.
Some common and helpful incentives that make solar more affordable for homeowners include property tax and sales tax exemption.
When solar is installed in a home, property values rise. Normally, this kind of upswing would be accompanied by a bill from your local tax assessor. But many states have decided to overlook this and free residents from an increased financial burden.
Sales tax exemptions are also helpful. For a state with a sales tax rate of 7.5%, a $20,000 PV solar system would come with an additional $1,500 tacked on. That’s a large amount of money, and its elimination could make or break a homeowner’s decision to install solar.
One way in which we can catch up to European nations would be to govern solar incentives on the federal level, rather than state, to ensure that all US residents are able to afford renewable energy. In Germany, for example, solar is overseen by a uniform national system, making adoption easier across the entire country.