GOVERNOR PLANS TO TRIPLE OFFSHORE WIND GOAL Highlights commitment to wind power

ATLANTIC CITY – Governor Jon S. Corzine today underscored his commitment to the development of windpower technology by announcing his plan to triple the State’s offshore wind goal. The Governor made the announcement while highlighting the selection of Garden State Offshore Energy (GSOE) as the recipient of a grant incentive to build New Jersey’s first offshore wind pilot.

“Our draft Energy Master Plan identified a goal of 1,000 MW of offshore wind by 2020,” said Governor Corzine. “We listened closely to our stakeholders, considered current economic conditions and the dynamic state of offshore wind technology, and we knew we had to go a lot further.

“Today, I am announcing that we’re not just doubling our commitment, we’re tripling it. New Jersey will support and encourage the development of 3,000 MW of wind power off its coast by 2020, which will be 13 percent of its total electricity. And we will get to 1,000 MW by 2012.”

Garden State Offshore Energy, a joint venture of PSEG Renewable Generation and Deepwater Wind, was the firm selected through a competitive grant solicitation process. That process concluded last Friday when the NJ Board of Public Utilities voted to award a $4 million grant to Garden State Offshore Energy (GSOE). It was one of five proposals submitted.

“PSEG believes that to meet the challenges of climate change, we need to move forward in three areas - expanding energy efficiency and conservation, investing in renewables and planning for additional clean central station power,” said Ralph Izzo, chairman, CEO and president of PSEG. “We believe that offshore wind has great potential to bring clean energy and jobs to New Jersey.”

The GSOE project calls for a 345MW wind farm southeast of Atlantic City, 16 miles from the coast. It is projected to cost an estimated $1 billion. When completed, the facility would produce enough electricity to power approximately 125,000 homes annually.

As part of this funding for GSOE, the BPU Board will provide up to 10 percent of the total incentive upfront to help conduct the needed studies and prepare needed permit applications. Construction would begin in 2010 at the earliest after necessary state and federal permits are obtained. This includes the baseline ecological study of the State’s ocean resources that is currently being conducted by the NJ Department of Environmental Protection. That study is expected to be complete some time next year.

With $15 million remaining in the funding that the Board of Public Utilities had allocated for offshore wind, Governor Corzine invited the other bidders to work with New Jersey to develop their projects, and called on the NJ Board of Public Utilities and the NJ Department of Environmental Protection to work with his Office to find ways for these companies and others to be a part of New Jersey’s offshore wind development. The Governor encouraged these discussions to go beyond the $15 million allocation, and asked the developers and anyone interested in fostering offshore wind in New Jersey to bring all ideas to the table to aid the state in creating an environment that will help this industry flourish, and bring local, green jobs to New Jersey.

In the last year, the State has taken steady steps forward through a series of closely coordinated, inter-agency efforts, gathering environmental and economic information regarding the impacts of off-shore wind. This includes an ecological baseline study currently being conducted by the NJ Department of Environmental Protection.

At the same time, the NJ Commerce Commission assessed the potential costs and benefits of offshore wind on the State’s economy. It concluded that tourism impacts are reduced the further the wind turbines are located from the coastline. It also concluded that while there would be some negative impacts on tourism, these would be temporary and would decline quickly.

“While I want to move forward quickly to harness offshore wind in New Jersey, I am committed to doing so in a responsible manner,” the Governor emphasized. “DEP will be charged with ensuring there are no unacceptable adverse impacts on the environment as a result of offshore wind.

“We want to create this generation’s race to the moon—but this time, a race to the sea, to harness this potential wind source off of our coasts, and bring economic development, environmental benefits, and new, green jobs to the Garden State.”

####Next Steps, Offshore Wind

Governor Corzine’s Draft Energy Master Plan includes a goal of developing at least 1000 MW of offshore wind by the year 2020.

According to estimates, offshore wind is the greatest potential source of in-state supply for renewable energy, with the potential to supply up to at least 50% of the 2020 Renewable Portfolio Standard requirements and constituting 80% of the total in-state supply.

Garden State Offshore Energy (GSOE) was one of five proposals submitted in response to a request for proposals issued in October 2007 by the New Jersey Board of Public Utilities.

The State of New Jersey selected GSOE as their preferred offshore wind farm developer in October 2008. GSOE will now begin evaluating wind quality and potential environmental impacts, and begin the permitting process at the state and federal level.

NJDEP will be responsible for ensuring there are no unacceptable adverse impacts on the environment as a result of offshore wind.

With the selection of GSOE, construction is anticipated to commence at the earliest in 2010.

GSOE expects that its wind farm will be up and running in 2013. This includes three years of development and permitting activities and two years of construction.

The turbines would be approximately 16 miles off the coast of South Jersey, barely visible from shore, with a minimal impact on the coastal viewshed. Future GSOE projects would be even further from the coast.

GSOE plans to build a port facility in New Jersey to support its offshore wind farm construction.

People working at this facility will assemble the wind turbines and towers and prepare them for transport to sea.

It is expected that this facility will create hundreds of new skilled trade jobs for New Jersey residents, such as: welders, mechanics, crane operators, electricians, engineers.