BEATON QUESTIONS STATE INVESTMENT IN NEW BEDFORD TERMINAL

March 17, 2015Gov. Charlie Baker's energy and environmental affairs chief is questioning the state's investment in a New Bedford marine terminal after the developers of an offshore wind energy project backed out of a lease.The offshore wind energy project, known as Cape Wind and planned for Nantucket Sound, was expected to use the terminal as a staging area.But in February, after the termination of two power sales agreements, Cape Wind told the Massachusetts Clean Energy Center (CEC), which owns and manages the terminal, that they were "amenable" to the center's proposal for them to terminate the lease.The center, a quasi-public state agency, started building the 28-acre facility in April 2013 and invested $113 million into the project.Energy and Environmental Affairs Secretary Matt Beaton, who by virtue of his position serves as chair of the center's board, said that given the current situation with Cape Wind, the question of whether the terminal was worth the state's investment is "subject for debate.""Would I make that investment today? No," Beaton said when asked by the News Service Tuesday.The city of New Bedford would likely call it a "great investment," due to potential economic development spurred by the project, he said. The city is a top commercial fishing port.According to the center, the terminal's main purpose is for staging, assembling and deploying offshore wind turbine projects along the Atlantic Coast, but the terminal can also be used for imports and exports."Was the CEC the best entity to develop it? That's my question," he added. "I would say there could have been other opportunities. There were other entities within state government that would've made that development -- given its current use -- there are other entities that would have been better vehicles through which to make that investment."Asked about the impact of Cape Wind pulling out of the lease, Beaton said, "It's certainly going to affect the return on the investment. Hopefully it still holds potential if there were to be new opportunities in offshore wind development. If those opportunities do exist in the future, I think we would be poised to have that be the center of the development and I think there is great opportunity there."The previous administration, led by former Gov. Deval Patrick, touted the terminal as a first-of-its-kind facility in North America and noted the state's significant investment in the terminal.The Clean Energy Center, created through legislation in 2008, describes itself as focused on helping clean energy technologies and projects.The center in its Feb. 27 revised request for proposals for professional operators of the terminal acknowledged the overall status and schedule of the Cape Wind development is "highly uncertain."National Grid and Eversource in January terminated the power purchase agreements they had with Cape Wind, but the head of the offshore wind project said they were "examining our options.""Respondents should assume that if Cape Wind seeks to use the Terminal in the future, Cape Wind will be required to negotiate with the Terminal Operator for use of the Terminal as would be required of any other offshore wind developer," the center's request for proposals said.Terminal operator applications are due by March 30.