Norway-USA: Maine loses offshore wind chance - by Pete Danko

Good idea for Maine torpedoed by short-sighted  governor

Maine’s offshore wind industry ambitions suffered a big blow this week when Statoil said it would abandon its plans to build an offshore, floating turbine project there. The problem: A governor who kept putting up obstacles.

Statoil wanted to build a four-turbine, 12-megawatt project far off the Maine coast. The idea was to demonstrate the viability of deep-sea wind power technology and spur construction of large offshore wind parks off the Northeast U.S. coast, in the process making Maine a center for design, engineering and manufacturing in the sector.

Hywind Maine, as it was known, was among seven offshore wind projects that won $4 million in seed funding from the U.S. Department of Energy late last year.

But the Republican governor of Maine, Paul LePage, thought it was too pricey. In a statement, LePage didn’t sound at all disappointed to hear Statoil was giving up:

"The Administration has been perfectly clear through the regulatory process that the term-sheet offered by Statoil was ironclad in its cost – placing a $200 million burden on Mainers by way of increasing electric costs. Additionally, the corporation was ambiguous in its commitment to growing Maine’s economy. Through bipartisan legislation the Governor and the Legislature worked to ensure that additional competition could be considered prior to embarking on a 20 year plan for Maine’s offshore wind industry and to finalize the best contract for Maine by the end of the year. With electric rates the 12th highest in the country we must continue to attract lower cost electricity that will grow Maine jobs."

Statoil’s plan came in answer to a 2010 Maine PUC request for proposals, set in motion by the state’s 2010 Ocean Energy Act, to build “deep-water offshore wind energy” projects “no less than 10 nautical miles” off the state’s famous coast.

Note EU-Digest: Statoil is an international energy company with operations in 34 countries headquartered in Stavanger, Norway and has approx. 23,000 employees worldwide. They are listed on the New York and Oslo stock exchanges. Statoil bases its reputation on 40 years of experience from oil and gas production on the Norwegian continental shelf . Statoil has a proven corporate policy which is committed to accommodating the world's energy needs in a responsible manner, applying technology and creating innovative business solutions. 

Energy insiders are saying Governor Paul LePage showed once again the typical Republican aversion against alternative sources of energy and the environmental benefits this provides in favor of environmentally dirty fossil type fuels.

As one of the governors opponents said. " he let the goose that could have laid the golden eggs for Maine in the form of new secure  jobs slip away by his short-sighted politicized vision". 

Read more: Maine loses offshore wind chance - Salon.com

US Economy: Maine remains worst state for business, Forbes says - "but Eastport's deep Port provides opportunities" - by C. Cousins and W. Richardson

For the fourth year in a row, Forbes has ranked Maine the worst state in the nation for business.

“Not much has changed,” Forbes said Friday. “It is still burdened with an aging population and a weak economic forecast. Job growth projections are the worst in the U.S and only Vermont is expected to have slower household income growth over the next five years, according to Moody’s Analytics.”

Virginia was the best state for business, according to the annual rankings. Virginia got high marks because of strong business incentives, its handling of legal claims against business and its low union membership.
Maine ranked 49th in growth prospects, behind only Wyoming. The Pine Tree State did better than most states — 24th — for quality of life.

Forbes placed much of the blame for Maine’s worst-in-the-nation standing on “the state’s high corporate tax burden and lousy job and economic growth forecast.”

The lack of a statewide economic development plan is a glaring omission, according to Peter Vigue, chairman and CEO of Cianbro in Pittsfield.  “You can’t run an operation or business without a strategy,” he said.

Vigue does, however, points to other factors that he thinks offset the negatives. "Compared to a number of other states there are some significant benefits of doing business in the state. I would argue that the resourcefulness of people in this state are significant and far greater than those of many, many other states in this country.”

He also cites the fact Maine has the deepest port on the eastern seaboard in Eastport. He said it needs upgrades, but the asset is there.


Read more: Maine remains worst state for business, Forbes says — Business — Bangor Daily News — BDN Maine

The US's Eastern Frontier: Can Maine’s abrasive governor "Front page LePage" revitalize business?

Some Mainers worry that their state—long a stamping-ground of moderate Republicans and conciliatory independents—is getting attention for the wrong reasons. Mr LePage does not seem to care. He attributes his brashness to a tough childhood. One of 18 children, he left home after being beaten by his father and supported himself on the streets shining shoes and cleaning stables. He was adopted, went to college, managed a discount store and was a small-town mayor before winning the governorship.

His forceful personality and peppery tongue have served him well. He rode an anti-government wave into office. With a Republican-controlled state legislature, the first in 35 years, he pushed through tax cuts for two-thirds of Mainers (adding up to roughly $400m) in his first two years, and tough restrictions on Maine’s generous welfare benefits. He also eliminated a hefty chunk of the state’s pension shortfall.

Mr LePage hopes his doggedness can entice more private investors into a state that still does poorly in rankings of business climate. Energy and transport costs are uncomfortably high, leading many to dismiss as daft his decisions to delay state construction spending and stall a $200m wind-farm project. Jobs growth since Mr LePage took over has been disappointing: Maine has added a net 8,000 jobs out of a total non-farm workforce of 600,000. That breaks down as 12,000 net new private-sector jobs and minus 4,000 in the public sector. Naturally, Mr LePage presents the trimming of the public payroll as a splendid achievement.

In Washington County, along Maine’s hardscrabble northern fringes, one resident in five is poor and one in three is on welfare. Many locals say that, by rejecting federal funds for Medicaid expansion, Mr LePage missed giving the state an easy economic lift. Instead, the governor is endorsing the “Free Maine Initiative”, a plan cooked up by Maine Heritage Policy Centre, a right-leaning think-tank, which would eliminate sales tax and income taxes in the county. In Eastport, near the Canadian border, residents reckon any plan is worth a try. “This would give us one more tool in the box, and Washington County is a unique place to try it,” says Chris Gardner, the director of the Eastport Port Authority. A revitalised deepwater port and a planned $120m wood-pellet factory suggest that industry could well return.

But time may be running out for the governor to see schemes such as this get off the ground. Mike Michaud, a seasoned Democratic congressman representing Maine’s northern half, is running for governor in 2014. Mr LePage’s best chance of re-election would be if the opposition vote is once again split. Eliot Cutler, a popular independent who ran in 2010, may do so again. Mr LePage must hope that his plain speaking enthuses more conservatives than it repels swing voters. Either way, few expect him to dab his tongue with Maine honey any time soon.

Read more: Maine’s abrasive governor: Front page LePage | The Economist