State formalizes benefits package with US Wind
In one of his last acts as governor, Gov. John Carney announced Jan. 6 that he and Delaware Department of Natural Resources and Environmental Control officials have signed agreements with US Wind to detail renewable energy, community and lease benefits to Delaware and its residents worth more than $128 million.
The finalization of the agreements came after US Wind received needed federal and state environmental and permit approvals in December 2024 for the first US Wind project, and about a year after the initial announcement of negotiations on the agreements.
"With the recent federal and state project approvals, we are ready to reap the environmental, health, workforce, energy cost and community benefits from this needed transition to renewable energy," said Carney in a prepared statement. "Delawareans will benefit in numerous ways from this important agreement.”
The three agreements facilitate projects that will sell carbon-free power to the regional power grid, said the state’s announcement. This new source of power generation is projected by US Wind to lower electric costs for Delaware ratepayers by up to $253 million over 20 years, and the company will also invest more than $200 million in transmission system upgrades.
“These agreements signify our continued commitment to providing meaningful and lasting benefits to the people of Delaware from our projects. Our project will deliver a massive amount of new electricity directly into the regional electric grid in Delaware, which means a lot of benefits locally,” said Jeff Grybowski, US Wind CEO, in a prepared statement accompanying the announcement.
The finalized agreements include:
- An agreement with DNREC's State Energy Office to provide 150,000 renewable energy credits each year associated with the wind generation. The energy credits have an estimated value of $76 million over the life of the projects
- An agreement for US Wind to fund coastal waterway dredging, clean energy workforce training, environmental scholarships, and resiliency and capital projects at state parks. The community benefits agreement is worth $40 million over 20 years
- A lease with Delaware State Park for underground access for power transmission cables at Delaware Seashore State Parks. Lease payments from US Wind will total more than $12 million over 25 years.
Caesar Rodney Institute appeals DNREC approval
The Caesar Rodney Institute announced Jan. 6 that it has filed an appeal of DNREC Secretary Shawn Garvin’s decision permitting US Wind to connect its offshore wind farm to land at 3R’s Beach north of Bethany Beach.
The appeal argues the statutory and regulatory requirements were not met when Garvin permitted the connection in December.
“This appeal is not just about stopping a poorly conceived project; it’s about holding decision-makers accountable to the people of Delaware, and safeguarding the environmental and economic future of Sussex County for generations to come,” said John Toedtman, CRI’s executive director, in a prepared statement.
CRI is highlighting the lack of support for the secretary’s decision, saying several federal agencies recommended against the transmission lines going under the bay, but DNREC ignored alternate approved land-based cable routes in approving the worst choice for the local ecology.
Defenders of offshore wind assert the US Wind project benefits Sussex County, including claims the project will reduce sea level rise, improve electric grid reliability, lower electricity prices, and US Wind will grant millions of dollars in payments to beach towns and the state.
“The project is called the Maryland Project for a reason. The US Wind project offers no real benefits to Sussex County but assumes all the risk and liability to our environment,” said Dave Stevenson, director of CRI’s Center for Energy & Environmental Policy.
In addition to questioning the permitting approval process, CRI says there are potential conflicts of interest. When denied access to Maryland sites to bring the transmission lines ashore, US Wind was offered access to Delaware through 3R’s Beach in Seashore State Park through an agreement with Gov. John Carney that included payments to the state from US Wind.
In addition to CRI, commercial fishermen Wes Townsend and George Merrick, Fenwick Island Mayor Natalie Magdeburger and the Tower Shores Beach Association are part of the appeal.
Appeal hearing set for Jan. 28 on offshore wind case
Delaware’s Environmental Appeals Board has scheduled a hearing pursuant to the appeal filed by Edward E. Bintz for 9 a.m., Tuesday, Jan. 28. The appeal challenges the Delaware Coastal Management Program’s review of the Federal Consistency Certification Conditional Concurrence for the Construction and Operations Plan, and the USACE Permits/Authorizations for the US Wind Offshore Maryland Project.
The hearing will be held as a hybrid session. It will be hosted on a virtual platform with the anchor location at the auditorium of the Richardson and Robbins building, 89 Kings Hwy., Dover. The link to this hearing can be found on the EAB website. The board shall reach its decision based on the record before the secretary and evidence presented by the parties. The board may affirm, reverse, or remand the decision of the secretary. The board may enter into executive session for deliberation.
