Air and Waste Management Association Energy Updates Assistant Commissioner Paul Baldauf Air Quality, Energy and Sustainability November 16, 2018

New Jersey Electricity Generation by Fuel Type TOTAL GENERATION YEAR 2017 1.6% 0.8% 0.2% 48% 45% 4.8% 2016 1.7% 0.7% 55% 38% 4.5% 2015 2.3% 0.5% 49% 44% 3.8% 2014 3.6% 0.9% 3.9% 2013 3.1% 1.0% 0.3% 42% 52% 2.0% 2012 2.9% 0.1% 51% 2011 6.4% 39% 1.2% Other Natural Gas Petroleum Coal Nuclear Renewable Source: EIA GENERATION FROM RENEWABLES YEAR Hydro Conventional Biomass Wind Solar Small-Scale Utility-Scale 2017 2.19% 0.03% 1.23% 1.54% 2016 2.15% 1.22% 0.01% 1.31% 2015 1.89% 1.24% 0.83% 2014 1.98% 1.44% 0.02% 0.74% 2013 0.67% 2012 1.48% 0.47% 2011 1.35% 0.04% 0.11% Source: EIA

Changing New Jersey Energy Landscape Governor Murphy’s Administration has set the clean energy tone Executive Order 8 – Aggressive implementation of the 2010 Offshore Wind Economic Development Act to meet 3,500 MW by 2030. Executive Order 28 – Advance New Jersey’s clean energy economy through completion of a comprehensive Energy Master Plan by June 2019. Largest single state offshore wind capacity solicitation at 1,100 MW. Key New Energy Legislation increase the state’s Renewable Portfolio Standard to 35 by 2025 and 50 by 2050 with specific solar targets; establish a community-solar program; target 2 gigawatts of energy storage by 2030; and, establishes a zero-emission credit program. The Executive Order 8 also requires: Develop an Offshore Wind Strategic Plan Implement OWEDA’s Offshore Wind Credit program Procure the necessary resources and expertise including an offshore wind economic consultant Initiate discussion with sister states in the Northeast and Mid-Atlantic Region to explore the potential benefits of regional collaboration on offshore wind and other opportunities to combat climate change EO 28 requires the EMP to align with Executive Order 8’s directives, incorporate 600 MW of energy storage by 2021 and 2000 MW by 2030, and address energy efficiency and traditional transportation alternatives.

Offshore Wind Updates

Offshore Renewable Energy Credit Solicitation Timeline Board Solicitation Technical Conference Application Deadline Evaluation Window Board Decision December 28, 2018 Jan. 28 – June 26, 2019 June 30, 2019

Federal East Coast Offshore Wind Leases The Federal Department of Interior’s Bureau of Ocean Energy Management (BOEM) regulates renewable energy activities on the Outer Continental Shelf (OCS). To date BOEM has issued 3 commercial wind energy leases (Orsted, US Wind, and Equinor) offshore of New Jersey in the NY/NJ Bight.

The New York/New Jersey Bight BOEM is also in the process of identifying additional lease areas in the NY/NJ Bight for the development of offshore wind energy facilities (shown in blue).

Federal Offshore Wind Commercial Leasing Process Orsted : Approved SAP by BOEM US Wind: Must submit SAP to BOEM by 3.1.19 Equinor : Submitted SAP to BOEM for review/approval. The NJDEP is actively meeting with these developers to identify their permitting requirements.

Federal Offshore Wind Commercial Leasing Process Planning and Analysis BOEM publishes Call for Information and Nominations BOEM identified priority Wind Energy Areas (WEAs) offshore. WEAs are locations that appear most suitable for wind energy development, or Processes unsolicited application for lease BOEM may prepare an Environmental Assessment for Lease Issuance and Site Assessment Activities Leasing BOEM determines whether Competitive Interest exists If Competitive Interest exists, BOEM notifies the public and developers of its intent to lease through Sale Notices before holding a lease sale If Competitive Interest does not Exist, BOEM negotiates a lease (note: issuance may be combined with plan approval) Site Assessment Lessee conducts site characterization studies Lessee submits Site Assessment Plan (SAP) BOEM conducts environmental and technical reviews of SAP, eventually decide to approve, approve with modification, or disapprove the SAP If approved, Lessee assesses site (usually with meteorological tower(s) and/or buoy(s) Construction and Operations Lessee may conduct additional site characterization Lessee submits Construction and Operations Plan (COP) BOEM conducts environmental and technical reviews of COP, eventually deciding to approve, approve with modification, or disapprove the COP If approved, Lessee builds wind facility

Supporting the Offshore Wind Industry New Jersey is centrally located to take advantage of the supply chain opportunities associated with the construction and operation & maintenance of the 8,000 MWs of Offshore Wind planned for the region.

Offshore Wind Challenges Consideration of various environmental, economic, transportation, communications and safety impacts n. There are many public and private sector entities that oversee and/or utilize the resources above and below the ocean’s water surface (e.g., shipping, commercial & recreational fishing, telecommunications, sand & gravel storage)

Nuclear Update

Oyster Creek Nuclear Plant Shutdown The nation’s oldest operating commercial power in the US, Oyster Creek, permanently ceased operations on September 17, 2018. The 625-megawatt single unit boiling- water reactor shut down 10 years prior to its license expiration. All the spent nuclear fuel from the reactor has been moved to the spent fuel pool, significant reducing offsite radiological risks.

Exelon Decommissioning – Next Steps No later than 2024 Spent fuel to dry cast Up to 60 years to release site for unrestricted use SAFSTOR Option Site Monitoring Environmental Sampling On-going DEP Role Further reduces offsite radiological risks

Oyster Creek Sale On August 31, 2018, New Jersey- based Holtec International purchased Oyster Creek, pending approval by the NRC. Once approved, Holtec International takes over all regulatory and financial decommissioning requirements for, including the oversight and emergency planning commitments laid out in the January 2018 Administrative Consent Order that exceed the NRC requirements.

Proposed Accelerated Decommissioning No later than 2021 Spent fuel to dry cast Site restoration 2027 Partial site release Site Monitoring Site clean up Environmental Sampling On-going DEP Role

Exelon/Holtec Decommissioning Comparison