INTERVIEW: SEN. DAVID WATTERS IS BETTING ON BIPARTISAN RFP BILL TO BRING OFFSHORE WIND TO NEW HAMPSHIRE

New England continues to drive the deployment of offshore wind, with thousands of megawatts slated for federal waters off the coasts of Massachusetts, Rhode Island and Connecticut.

But New Hampshire stands as an outlier, taking more of a two steps forward, one step back approach when it comes to procuring renewable energy.

Now, a robust proposal from a New Hampshire legislator could change all that. Last month, Democratic state Sen. David Watters presented a plan before the Senate's bipartisan wind commission for the state to seek 600 MW of offshore wind energy and up to 200 MW of additional new renewable energy via a solicitation process with a mid-2022 submission deadline.

Because the Gulf of Maine, which includes New Hampshire’s coastline, does not yet have federal authorization for wind turbine use, Watters’ proposal does not apply any location requirements for its projects, which would allow offshore wind facilities further south along the East Coast to qualify as potential RFP candidates.

RFP projects would connect to New England’s transmission grid and contribute to New Hampshire’s clean energy goals.

“It's important for the region to commit itself together to climate change goals, and we see some of our states around us moving very aggressively, but New Hampshire not so much,” Watters told NPM. “But I think that what wins with offshore wind is that it's an opportunity to bring together the folks who want renewable energy with the folks who want economic development. Most fundamentally, to lower energy prices, which are the highest in the country here in New England, through this new and large source of energy for New Hampshire. I think there's a potential because of that to have real bipartisan support, and I am looking to this fundamentally as an economic development bill.”

The state is well-positioned to develop the industry, with local companies seeking to take part in the manufacturing and technological supply chain needed to support offshore wind.

The state offers top-notch facilities--the Port of New Hampshire and the Portsmouth Naval Shipyard could potentially be used to assemble and stage offshore wind components, while private land in coastal areas of the state offer endless opportunities.

“The facilities here are terrific, but it also is an opportunity for people who are developing offshore wind down along the southern parts of the New England coast that are getting a bit maxed out on the space they have for their operations,” Watters said. “They could take advantage of what New Hampshire has to offer."

The proposal also presents an opportunity to address economic justice issues through the creation of good-paying jobs, workforce development, and technical education programs for high school and university students.

"Up and down the gamut, there’s an opportunity here to provide good paying jobs to people who may have been left out from some of the other economic developments in the state," Watters said.

Breaking though barriers

The Bureau of Ocean Energy Management's (BOEM) Gulf of Maine Intergovernmental Renewable Energy Task Force is expected to play a major role in moving the needle on offshore wind. Launched last year, the task force hopes to facilitate coordination among federal, state, local and tribal governments to create and oversee the wind energy leasing process on the Outer Continental Shelf in the Gulf.

“Because it is shared by Massachusetts, Maine and New Hampshire, I think the most likely lease area will be in a circle that will be centered off of New Hampshire,” Watters said. “The hope is that over the next year or two, the lease areas will get defined and then they’ll put those up for bid. But in the meantime, this bill is about preparing New Hampshire for economic development and doing everything we can do to encourage the industry to take advantage of what New Hampshire has to offer.”

The bill could face an uphill battle, given the generally weak support shown for renewable energy efforts in the state's Republican-dominated Senate and House of Representatives. Also notable are contrasting indications from Gov. Chris Sununu, who has backed the task force but vetoed an earlier bill proposing the formation of a committee to study state-supported renewable energy development efforts.

“My career in the Legislature has always been to work in a bipartisan fashion, and I think that means that real partnerships and relationships can be formed,” Watters said. “The teamwork with Sen. Bradley, the Republican majority leader, and others in the Senate to do what can help the New Hampshire economy and move us forward in energy has been a good partnership. Gov. Sununu has been skeptical of some renewable energy and dates and goals if he feels, rightly, that he’s trying to look out for the New Hampshire ratepayer. But he was the one who called for the Gulf of Maine Task Force to be formed, and I think that he sees the extraordinary economic opportunity in it--and because this power is going to be pretty inexpensive.”

In December, Congress passed a tax relief package that provides offshore wind developers a 30 percent Investment Tax Credit (ITC) for projects that launch construction by 31 December 2025. The new ITC level is expected to drive down costs for offshore wind projects like Massachusetts' Mayflower Wind farm, which will see prices fall from USD 77.76 to USD 70.26 per MWh--a drop of nearly 10 percent.

“That's about as cheap power as you can buy from any source, except for nuclear,” Watters said. “So it’s going to be important to talk about this in ways that don't alienate folks, that help people to understand that this is a way to benefit the state. Politics are always tough, but I think, particularly on procurement, that the business community, the utilities and the offshore wind industry have communicated pretty strongly that the states who don't have a procurement commitment are not seen as very serious, and they might be less likely to want to bring the industry here.”

President-elect Joe Biden’s ambitious climate plan is expected to build momentum around the initiative, with Watters in ongoing conversations with the transition team on growing offshore wind in the region.

“I think we’re going to see that commitment translated to much more support for the states and support for the BOEM process to get things moving a little more expeditiously,” he said. “There’s port development money through the Army Corps of Engineers, there are all those kinds of things that if you have an administration that is committed to it. Then the congressional delegation can get to work and get things done. I think it's going to provide immense momentum here, and all the more reason for the states in New England to get on board. At the beginning of the Industrial Revolution, New Hampshire was right at the forefront, and there’s no reason that shouldn't be for this industrial revolution, too.”