1. 2 nd Annual “Ocean Energy for New England” Conference September 17, 2009 Chris Powicki Principal, Water Energy & Ecology Information Services President, Cape & Islands Renewable Energy Collaborative * The information in this presentation may not reflect the opinions of other CIRenew participants. Offshore Renewables for Community Benefit

2. “Beyond Cape Wind” Process & 2020 Goals Stakeholder Process “Beyond Cape Wind” approach depolarizes discussion, finds common ground, and sets 2020 goals EPRI-funded Cape & Islands Energy Technology Strategy Project defines RDD&D priorities Regional Goals for 2020 Reduce direct fossil fuel use for heating and transport by 50%, relative to 2007 baseline Develop renewable resources to meet 100% of net annual electricity needs

3. Cape & Islands Energy Technology Strategy Project – 2020 Budgets & Priorities 2007 Inventory  2020 Budgets Energy-Intensive Economy: 61 trillion Btu Heavy Carbon Footprint: 3.9 million MT High Energy Bill: $1.35 billion 50% Heating - 10.4 TBtu in 2020 Fix existing buildings, switch to lower- carbon sources 50% Transport - 11.5 TBtu in 2020 Accelerated transition to clean vehicles, including plug hybrids 100% Green Power - No Limit in 2020 Offshore wind is critical path for electricity independence, transport electrification Cash for Clunkers!

4. Cape & Islands Energy Technology Strategy Project – Offshore Wind Cape Wind-size project could meet total 2020 needs if sales decline Community-scale projects could meet needs of most individual towns “Beyond Cape Wind” deployment required Electrify transport: ~100 MW for 25% plug hybrids Achieve state goal: 500 MW for “2000 by 2020” Barriers to overcome Community acceptance Cost-competitiveness Technology

5. Cape & Islands Energy Technology Strategy Project – Offshore Interconnection Limits Base Map of Grid Infrastructure: NStar ~750 MW ~450 MW ~70 MW ~1000 MW ~1100 MW ~450 MW ~425 MW ~100 MW ~25 MW ~20 MW ~350 MW * These are nominal limits, not accounting for average loads at interconnection sites. Grid Capacity Constraints Inform Deployment & Interconnection Options; Hyannis & Canal Substations Offer Largest Opportunities Without Major Circuit Upgrade

6. Cape & Islands Energy Technology Strategy Project – High-Level Community Benefits Greening the Cape & Islands Huge Progress Toward Independence – 70% Major Cut in Carbon Emissions – 61% EPRI-CIRenew “Cape & Islands Technology Strategy Workshop” November 5, 2009

7. Community Benefit Considerations for Developing Offshore Renewables “Visions of Success” (6/18 Forum) Community-based siting, planning, construction, and operations Creation of jobs and additional economic activity Stabilization/reduction of electric rates through long-term contracts Minimal or no adverse impacts on community character and cultural values No adverse impacts on navigation and sustainable fishing Protection of habitats and species Positive effects on real estate market and recreational fishing Revenues for addressing energy justice and environmental issues Talisman Energy

8. Integrating Community Benefits at Local, Regional, State & Federal Levels Launch coordinated and proactive community planning processes Empower stakeholders and the public Participate on state-federal task force (MOMP-MMS) Establish right of first refusal (MOMP) Develop performance standards (MOMP and MMS multiple-factor auctions) Secure fixed percentage of leasing and operating revenues (MOMP) Courtesy LANDSAT.ORG

9. Community Benefit Responses Inform final MOMP and MOMP-MMS implementation Consensus statement and legislative breakfast Pursue planning and development of community- scale projects Edgartown Create infrastructure to support local ownership and power purchasing Vineyard Clean Energy Cooperative Integrate offshore renewables in economic development plans Comprehensive Economic Development Strategy

10. Questions/Comments? Chris Powicki 774.487.4614 chrisp@weeinfo.com If you are interested in joining the CIRenew mail list, send a note to register@cirenew.org.