A wind farm’s local windfall

Equinor, the Norway-based international energy firm that is proposing the construction of a wind farm off the South Shore, has pledged $246 million in community benefits to Island Park and Long Beach. More direct funding would go to Long Beach, because of the proposed underground cable routing there, but Island Park would see more tax relief, since Equinor is no longer vying for a payment-in-lieu-of-taxes, or PILOT, financing arrangement.

U.S. Rep. Anthony D’Esposito, who is from Island Park, met with Equinor on March 28 to discuss his and the communities’ concerns with the proposed wind farm and called the proposed benefit after the meeting, "the cost of doing business."

The $3 billion project, dubbed Empire Wind 2 and with the petroleum company BP as a partner, would include 147 turbines, each 886 feet tall, 15 to 30 miles offshore. Cables would be routed beneath both Island Park and Long Beach, with Island Park hosting an electrical substation as well. According to Equinor, the energy produced would power nearly a million homes, and help the state achieve its goals for reducing the use of fossil fuels and mitigating the effects of climate change.

The news of benefits comes after D’Esposito and New Jersey Rep. Jeff van Drew created a resolution on March 21 that would place a moratorium on offshore wind development while environmental and marine life impact studies took place.

Roughly $200 million of the $246 million in promised benefits would be tax revenue generated over 25 years — $8 million to $9 million per year. This, Equinor claims, would reduce by about half the estimated tax hike for the Island Park school district after the reassessment of the Long Island Power Authority’s E.F. Barrett power plant.

Easement payments would total $40 million, which could be used for things like road projects. The host community benefit would total $15 million, split equally between Long Beach and Island Park, with $7.5 million available now through a contract with New York State Energy Research and Development Authority. Community-based projects would be chosen through coordination with municipal leaders and evaluated NYSERDA.

Danielle Higman, the commercial lead for Empire Wind 2, said that Equinor is offering a community benefit because, “we have a great cash flow, so we’re able to do these multibillion-dollar projects because we have had great management in the past that keeps the business alive.”

At an Island Park Civic Association Equinor Windmill Committee meeting on March 30, over 100 people learned about Equinor’s plans for the first time, offered suggestions on how to use the pledged money and said they need to demand more.

“We intend in the next month or two to come up with eight or nine or maybe 10 demands,” committee member Richard Schurin said. “Demands that (Equinor) compensate the community in a direct way.” One such idea was the construction of a pedestrian walkway from Island Park to Barnum Island.

“I don’t know how long this period of time is going to last where they’re in the negotiation phase,” Schurin said. “But if you care about this community, if you care about Long Beach, you care about Island Park, if this is going to go forward, now is the time to speak up and to make your demands be heard. Because if it goes forward and they do everything they want to do, we’re going to have to live with that for a very long time.”

Crystal Lake, a longtime Long Beach resident and a board member of the North Park Civic Association, offered suggestions on how the city could use some of the $7.5 million. “Equinor and the city,” she said, “could consider funding for firefighters and first responders who were called on to perform their duties in the event of any type of construction accident in the laying of the electric lines that are to go through Long Beach.”

Adrienne Esposito, executive director of the Citizens Campaign for the Environment, said there has been “a lot of misinformation” in South Shore communities about the environmental impact of the project, which has led to angry calls at meetings against Equinor and the windmills.

“The majority of concerns are based on misinformation,” Esposito said. “Fears that the electrical lines will injure fish, children and adults (are) unfounded.”

Island Park village mayor Michael McGinty, asked last Thursday for a comment on the project, wrote in an email, “While I would relish the opportunity, I must forgo any interviews at this time. Village counsel has indicated the mayor and the board of trustees should keep their own counsel. It is imperative that we offer no fodder in light of possible litigation.”

Lauren Shane, senior communications manager at Equinor made it clear that this is the “start of a dialogue; it’s not the end of it. We’re very excited to share this framework with the municipality and to begin the conversation about the positive impact we are committed to making on the ground.”