In U.S. Race to Reap Offshore Wind, Ambitions for Maryland Remain High

Massachusetts is officially poised to have America's first offshore wind farm, now that Cape Wind has won federal approval to begin construction. The news knocks Delaware, Rhode Island and New Jersey out of that heated title competition for now.

Maryland, for its part, took itself out of the Northeast wind war this month when lawmakers shelved a bill expected to unleash the state's offshore wind industry over cost concerns. It is likely a temporary setback.

Supporters insist that Gov. Martin O'Malley's wind bill will pass next year and offshore turbines will be added to the grid in due time.

In interviews with SolveClimate News, industry officials, environmental groups and the O'Malley administration all said they will work closely with lawmakers over the summer interim to address the uncertainties that held up the bill this session. 

O'Malley, who was recently elected to his second term, has lobbied intensely to bring offshore wind to Maryland's eastern coast in an effort to boost the state's renewable energy profile and attract green manufacturing jobs.

In February, he introduced the Maryland Offshore Wind Energy Act, which would guarantee revenue for an estimated $1.5 billion, 500-megawatt wind farm by requiring the state's four investor-owned utilities to sign 25-year purchasing agreements with wind developers.

Amid concerns that the project would burden ratepayers, O'Malley later capped expected rate hikes at two dollars per monthly residential bill and 2 percent of bills for large businesses.

Baltimore Gas & Electric, the Southern Maryland Electric Cooperative and a Washington Gas subsidiary continued to openly oppose the bill, while a fourth utility, Pepco, was officially neutral.

As the session neared its April 11 adjournment, legislators in the Senate Finance and House Economic Matters committees still felt uneasy about how operational and maintenance costs on the offshore farm would add up. They wondered if Maryland's turbines could get pushed onto the North Carolina grid because some lots approved for leasing are actually closer to that state's power system.

On April 7, both committees opted not to take the bill up for a vote.

"This was one of the busiest sessions any of us have had. We had a lot of major issues on all of the committees' desks ... We didn't have time to go into what the impact of this was going to be," Senate Finance Committee Chairman Thomas M. Middleton, who co-sponsored the wind bill, told SolveClimate News.

"My intention is that when we sit down at the beginning of next session, we will have all the answers to our questions so we can make an intelligent decision based on what the facts are," he said.

Eight Developers Make Proposals

Middleton added that this summer his committee will study the progress of the 130-turbine, 468-megawatt Cape Wind offshore farm in Nantucket Sound, Mass.

The U.S. government finally approved the project on Tuesday after a decade-long federal permitting process concluded in January. Secretary of the Interior Ken Salazar said that construction of America's first offshore project could begin as early as this fall.

Jim Lanard, president of the Offshore Wind Development Coalition, a lobbying group, said that he expects Maryland's wind energy act will fare better its second time around.

He noted that eight developers — including three European firms — had already proposed to lease lots in federal waters roughly 11 miles off the coast after a state/federal task force issued siting recommendations last year.

"We think that with some work over the summer ... we'll see a positive outcome in 2012," he told SolveClimate News.

Shaun Adamec, a spokesperson for O'Malley, said in an interview that the governor was undeterred by the delay.

He added that the Maryland Energy Administration and Abigail Hopper, the governor's energy adviser, would work together to address lawmakers' concerns about the bill's impact on ratepayers and businesses.