The Division of Parks and Recreation was approached as a coastal landowner to consider the possibility of landing electric cables and the installation of an interconnection facility associated with the Skipjack Wind Farm on Parks’ property. Parks’ role in the process is as a property owner and land manager. The project, whether on or off Parks’ property, will still require the necessary permits and authorizations from the appropriate federal and state regulatory agencies. Please note that the Division of Parks and Recreation is not a regulatory entity, but rather, a service provider and land management organization. In 2012 the US Department of the Interior, Bureau of Ocean Energy Management (BOEM) issued a commercial lease to Bluewater Wind Delaware, LLC (OCS-A 0482) of which a portion would be assigned to Skipjack Offshore Energy, LLC in 2018.

The Memorandum of Understanding (MOU) is not a legally binding document that would require DNREC to move forward on the project. If the project is determined to move forward by the DNREC Secretary, the next step requires detailed planning and all associated permitting. A MOU is considered best practice in governing that allows the Division of Parks and Recreation to begin to evaluate the feasibility of a proposed partnership project. The MOU acts as a declaration of the partners’ interest. In the MOU between DNREC and Ørsted, the terms included the conceptual development of an interconnection facility and park amenity upgrades.

Upon completion of the MOU, DNREC developed an internal working group that met throughout August and September to identify safety challenges and concerns, as well as potential park improvements for Fenwick Island State Park. DNREC worked with Ørsted to develop renderings in order to garner public input regarding the proposed park improvements prior to posting the Open House logistics.

DNREC will not allow negative impacts to wetlands. Any unacceptable impacts to the environment will not be entertained.

The proposed infrastructure improvements would remove a row of parking closest to the dune to allow the area to naturalize again and give the dune additional space to move. In addition, any new infrastructure would be designed to allow for dune movement.

There are no expected impacts or changes to the contour of the beach.

Parks plans to transition to an automated fee machine model similar to many of the beach communities. Visitors to the park would only pay once they park alleviating the queuing on Route 1. In other parks such as Cape Henlopen, visitors tend to realize trends in capacity and plan visits accordingly minimizing capacity issues over time. Parks will work closely with the Department of Transportation to minimize traffic impacts on Route 1 with any proposed entrance or exits at the park.

Parks is unable to make cost estimates until the amenities and infrastructure upgrades are determined. Parks is presently 65% self-sufficient with increased visitation and revenue assisting to off-set new expenses. In addition, with proper planning, Parks is looking to explore ways to reduce operating costs. The conceptual proposal would likely include both savings to park operating costs and additional expenses associated with new amenity offerings.

• The use of automated fee machines will reduce the number of seasonal fee collectors.
• Upgraded facilities planned appropriately will reduce the overall maintenance requirements of the site compared to aged facilities that require continuous attention.
• Improved park access will reduce the number of enforcement staff necessary for road and lane closures.
• Pending negotiations of the proposed Skipjack Wind Farm partnership, there is a possible opportunity for a decrease in the costs of electric at Fenwick Island State Park
• Infrastructure such as lifeguard housing will have a cost to maintain but is essential in the recruitment of lifeguards that are critical to our visitor safety.
• The addition of a pedestrian bridge, playground, or new infrastructure would have ongoing costs associated with the maintenance.

There are numerous variables in determining impact to property values including, but not limited to, property location and proximity to services and amenities.  Given the number of variables, it is difficult to reach concrete conclusions about the possible impacts to property values from this specific project. From a park perspective, the national trend shows an increase in property value when adjacent to a park or the direct connectivity through a safe trail system.

There are numerous studies showing both positive (curiousity and interest) and negative (view) impacts to tourism.

Fenwick Island State Park has seen an increase in visitation as a result of increased visitors and development in the surrounding area. Regardless of any proposed amenities, the park is expected to only grow in popularity and stress existing infrastructure that is undersized for the demand. The proposed amenities will add capacity for the park and improve flow and experience for visitors. At some point, if the popularity of the park continues to grow, capacity will again be a challenge that would need to be managed similar to present management strategies. In other parks such as Cape Henlopen, visitors tend to realize trends in capacity and plan visits accordingly minimizing capacity issues over time. Parks will work closely with the Department of Transportation to minimize traffic impacts on Route 1 with any proposed entrance or exits at the park.

While this question mainly pertains to the offshore wind farm, Delaware, Maryland and neighboring states all buy power through the regional grid, which is managed by PJM Interconnection, LLC. Maryland is purchasing the renewable energy credits. It is our understanding that Sussex County customers will continue to receive their electricity through their current utilities at the same price they have been paying. The cost of electricity for Fenwick residents should not be affected. The electricity will connect to the regional grid in Delaware.

It is Parks’ understanding that Ørsted would utilize undersea cables to connect to the proposed interconnection facility at Fenwick Island State Park to bring the power generated by the Skipjack Wind Farm to the grid. Ørsted currently proposes to install the cables under the beach by means of horizontal directional drilling (HDD), which would be included as part of permit applications. The project’s operation would be required to comply with state and federal guidelines and safety standards.

The power is proposed to enter the regional grid through the existing power lines.

Ørsted could be expected to have responsibility for all of their equipment for the life of the project through decommissioning. In addition, Parks could develop an annual lease payment for the interconnection facility based on market rate value of the space needed. Responsibilities and the level of park improvements would be subject to agreement between DNREC and Orsted should the project proceed.

The offshore wind project and associated onshore infrastructure will require reviews from various federal and state agencies. As part of the permitting process, impacts to natural resources and uses including recreational and commercial activities (e.g. commercial fishing, tourism, navigation) will be evaluated. In 2016, the Bureau of Ocean Energy Management (BOEM) developed a regulatory overview for their process called “A Citizen’s Guide to the Bureau of Ocean Energy Management’s Renewable Energy Authorization Process.” As part of the federal process, BOEM will conduct an environmental review pursuant to the National Environmental Policy Act, which includes impacts to fish, wildlife, habitats, and cultural resources. In addition to federal reviews by agencies such as BOEM and the US Army Corps of Engineers, the project will also undergo review at the state level, which may include obtaining air quality, wetland, subaqueous lands, beach and sediment and stormwater management permits in addition to a federal consistency review. For clarification, DNREC is considering the interconnection facility and improvements to Fenwick Island State Park as a land manager. The offshore wind farms are regulated at the federal level.

• Federal:

  The US Department of the Interior’s Bureau of Ocean Energy Management (BOEM) is the federal agency responsible for issuing leases, easement and rights-of-way for renewable energy projects on the outer continental shelf (OCS). Please refer to BOEM’s publication “A Citizen’s Guide to the Bureau of Ocean Energy Management’s Renewable Energy Authorization Process” dated December 2016 for an overview of their federal regulatory process (https://www.boem.gov/sites/default/files/renewable-energy-program/KW-CG-Broch.pdf). As mentioned in the Citizen’s Guide, BOEM provides various opportunities for public engagement in their permitting and plan review processes. Please note that other federal agencies may be involved in reviewing and permitting these types of projects such as the US Army Corps of Engineers.

• State:
  

  The U.S. Department of the Interior regulates offshore wind farms. Depending on the proposed activity, various state agencies may have authority to review aspects of these projects occurring on the OCS in federal waters, crossing state waters, and landing in Delaware. The following chart is an overview of permits and associated reviews that may be required from DNREC depending on location of the activity and types of impacts. DNRECs’ consideration of the interconnection facility on Parks land and the consideration of improvements to Fenwick Island State Park requires prior approval from the DNREC Secretary and are separate from the acquisition of the necessary permits. The following overview chart depicts DNREC authorities relating to offshore alternative energy projects and associated infrastructure.

DNREC Division	Possible Required Permit/Review
Division of Air Quality	Federally Enforceable Construction Permit
Division of Climate, Coastal, &Energy	Federal Consistency Review
Division of Water	Wetlands and Subaqueous Lands Permits/Leases and Water Quality Certification
Division of Watershed Stewardship	Coastal Construction Permit
Division of Watershed Stewardship	Sediment and Stormwater Management Plan with NPDES Delaware Construction General Permit
Division of Fish and Wildlife	Review of rare, threatened, and endangered species; unique natural communities, and other significant natural resources (part of other permit reviews)

DNREC will not allow negative impacts to wetlands. Any unacceptable impacts to the environment will not be entertained.

The proposed infrastructure improvements would remove a row of parking closest to the dune to allow the area to naturalize again and give the dune additional space to move. In addition, any new infrastructure would be designed to allow for dune movement.

There are no expected impacts or changes to the contour of the beach.

A review of impacts to living resources (e.g. marine mammals, sea turtles, horseshoe crabs, birds, bats) would be conducted as part of the permitting process. Time of year restrictions are often placed on projects to protect living resources. Environmental research has been and is being conducted and mapping tools have been generated to assist in the evaluation of potential impacts from offshore renewable energy projects. Please find below links to data tools and research related to these types of projects:

• Mid-Atlantic Regional Council on the Ocean Data Portal
• Marine Cadastre
• BOEM Environmental Studies for Delaware
• BOEM Renewable Energy Research