Hartford Business Journal

46 HARTFORDBUSINESS.COM | JUNE 28, 2021 Wind power and renewable energy are big growth opportunities for CT By Peter Denious A s Connecticut emerges from the pandemic, clean technology can catapult the state's economy for years to come. Gov. Ned Lamont seeks to attain 100% zero-carbon power by 2040. He's proposed a $200 million "Greentech Fund" to jump-start a boom in areas like battery technology and recycling, which could create 2,000 jobs. Pivotal to these efforts are the state's offshore wind projects, Revolution Wind and Park City Wind, representing 1.2 gigawatts in currently contracted power, enough juice to light 110 million LEDs or propel 9,000 Nissan Leafs. Revolution Wind is being developed by Eversource Energy and Ørsted. Its land base will be State Pier in New London. Through a $235.5 million public- private partnership with Eversource and Ørsted, State Pier is being transformed into a state-of-the- art hub for wind turbine staging and assembly. Park City Wind is being developed by Vineyard Wind LLC in Bridgeport. The developer is leasing space at Barnum Landing for construction and staging, and will locate its Connecticut headquarters in Bridgeport, too. Both projects are spinning forward. Construction in New London is Opinion & Commentary EDITOR'S TAKE CT lawmakers shouldn't play role of union negotiators W ith the 2021 legislative session officially complete, state lawmakers avoided major tax increases, much to the business community's satisfaction. In fact, the recently approved two-year, $46.4 billion spending plan even got some bipartisan support (with 22 House Republicans approving it) and the Connecticut Business & Industry Association applauded it, saying "there are numerous reasons to be optimistic about the state's future based on the actions the legislature and the Lamont administration took over the last five-plus months … ." Gov. Ned Lamont deserves credit for holding the line on tax increases, particularly in the face of his party's left wing, which was pushing hard to raise additional revenue from the state's wealthiest residents. Could the state's top earners afford to pay more? Sure they can but they also don't have to, and Connecticut needs to do everything it can to prevent its wealthiest residents from moving to lower-tax states. The threat of higher federal taxes will only increase the allure of low-tax jurisdictions. Any legislative session in Connecticut that ends without tax hikes is certainly a victory, although attempts to raise new revenues this year were largely inexcusable with the state experiencing a budget surplus in addition to having a multibillion-dollar rainy day fund and billions more in federal stimulus aid. Not to mention Connecticut legalized two new industries — recreational marijuana and sports betting — that will raise tens of millions of dollars in new revenues. Beyond the tax debate, however, there were a few bills that passed that are concerning and underscore the state legislature's increasing intrusion into the private sector. In February the CT Mirror published an aptly headlined story that read: "In an evolving economy, lawmakers take roles once played by unions." It described a few bills that, in many ways, would impose union-like rules on non-unionized, private- sector companies. One proposal — Senate Bill 658 — required employers to recall certain laid off workers in order of seniority. Another proposal, not mentioned in the CT Mirror story, required developers of all renewable energy projects to pay employees, including construction and maintenance workers and security personnel, the prevailing wage, something typically required in only public works projects. The legislature passed both bills; Lamont signed the solar industry bill into law but had not yet acted on the employee call back measure as of press time. This is not meant to be an anti- union column. Organized labor has its place in the economy, and employers with unionized workforces ought to negotiate wages, benefits and other perks in good faith. And there are good intentions behind both bills, including trying to secure higher wages for employees and ensure older workers don't get left behind as employers rehire in a post-pandemic world. But it feels like a major overreach when government dictates to private sector companies things like a prevailing wage requirement or hiring restrictions that would traditionally be negotiated through collective bargaining. Debates over tax policy often dominate the headlines during the legislative session, but a lot of important bills that impact businesses are raised and come out of the Labor and Public Employees Committee. It's a committee the Connecticut Business & Industry Association traditionally keeps close tabs on, CBIA CEO Chris DiPentima recently told me. In fact, the CBIA and more than 40 other employer organizations in April sent out a media advisory calling on lawmakers to reject about a dozen bills that would introduce new workplace mandates on private sector employers, including the seniority rehiring measure. "Those types of things always get us concerned about Connecticut progressing to a more unionized environment in non-union companies," DiPentima said. "There were a litany of labor mandates in the legislature, but luckily the vast majority, 99%, did not pass." Many of these so-called employer mandates come up on an annual basis and don't get through the legislature, but it only takes the approval of one or two a year to create a more challenging business environment. Tax increases were kept at bay this year, and that's a good thing. But policymakers must be cognizant of other policies that may not read like a tax hike, but nonetheless make it more expensive or difficult to do business in the state. Greg Bordonaro Peter Denious expected to commence this summer. The U.S. Department of the Interior recently issued final approval to the Vineyard Wind I project, which is adjacent to Park City Wind. With these two projects, Connecticut is off to a great start to capture a share of the 83,000 new jobs forecast to be created by offshore wind projects nationally by 2030. Offshore wind farms generate valuable ancillary jobs, too. For every $1 spent on manufacturing, another $2.79 is added to the economy. For every worker in manufacturing, another five employees are hired elsewhere. Construction workers will erect dockside staging and assembly facilities. Manufacturers will produce the component parts of the wind turbines. Technicians will perform ongoing maintenance and repair. Software and IT experts will engage in the provision of sensors, monitoring systems, and performance optimization software. Let's leverage the state's skilled workforce and rich manufacturing base to fill those jobs in-state. Eversource and United Illuminating have a vital role in assisting with interconnection, managing the integration of renewable power into the grid, and mitigating intermittency. Both companies are focused on bringing the economic benefits that come with building a new industry. Finally, we have a great opportunity to recast the state's deep-water ports as cutting-edge facilities with updated infrastructure and heavy-lift capabilities. These enhancements will increase the attractiveness of the docks, enabling the state to accommodate a wider range of cargo and handle more vessel calls, and to collect more revenue. The State Pier upgrade could revitalize the region, leveraging Southeastern Connecticut's manufacturing and technology base to spur business development, coupled with New London's expanded Foreign-Trade Zone. A similar renaissance is envisioned for Bridgeport. Our mission at AdvanceCT is to help Connecticut companies grow and expand while also recruiting new companies. To support state action on renewable energy, we are meeting with in-state manufacturers to discuss tapping into emergent supply chains, recruiting clean technology companies, and disseminating marketing materials to showcase the state's strengths. The state's offshore wind projects are a win-win proposition. We stand ready to support their ongoing development. Peter Denious is the CEO of AdvanceCT.

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