The winds of change are blowing somewhat ominously for sailors. A recent development in the push to create offshore wind energy off Maryland’s coast has created a loophole for greater taxes on sail area.
The Maryland Offshore Wind Energy Act of 2013 creates a mechanism to incentivise the development of up to 500 megawatts (MW) of offshore wind capacity at least ten nautical miles off of Maryland's coast. A target project size of 200 MW would require the installation an estimated 40 turbines off the coast of Ocean City.
Proponents of the bill cite the economic advantage wind energy would bring to the state. Based on a report from the U.S. Department of Energy’s National Renewable Energy Laboratory, a major 200 MW project would create almost 850 manufacturing and construction jobs for 5 years and an additional 160 ongoing supply and O&M jobs thereafter. Based on a regional employment model analysis by the Maryland Department of Business & Economic Development, the total economic impact of offshore wind over five years is almost $1.3 billion, with $5.6 million in additional state tax revenues.
But despite all of the advantages wind energy brings to the state, sailors are facing grave consequences when it comes to the language of the bill. House Bill 04012014B places a tariff on each wind generating station based on the square footage of surface area exposed to the wind. The bill's language defines wind-powered energy-generating systems as "all machines that generate energy by the action of wind upon exposed foils."
And this definition, perhaps as an unintended consequence, includes sailing vessels. As a result, all sailing vessels registered in Maryland will be considered "wind-powered energy-generating systems," and will be subject to the Wind Tax should the bill pass.
Since sailors refuse to let the wind out of their sails, sailmakers are instead moving to limit the amount of sail area exposed to wind. "We've known about the Wind Tax for a while now," says Jonathan Bartlett of North Sails. "In terms of technological development, the tax is forcing sailors to rethink the classic lines you associate with sailboats, and it's allowing us to get creative with the concept of sail area and the most advanced fabrics out on the market."
"Instead of looking at a spinnaker's shoulders, we're now looking at her hourglass," Bartlett continues. "The designs haven't proven a necessarily faster boat, but when the design is coupled with advanced technology and lighter material, you start to create a shape with speed."
"No one really knows what's going to happen, but we're having a great time re-inventing the wheel," says Dave Gross of Quantum Sails Design Group. "And especially in the wake of the America's Cup, sailors are more willing than ever to rethink their sails. It's a really great, creative time to be a part of this process."
HB04012014B won't go into effect until 2016, with Maryland committed to having 20% of the state's electricity from renewable sources by 2022. The offshore wind plan itself has been in process since 2009, with no signs of fatigue or stalling on the horizon. "We're curious what the passage of the bill could do to orders placed later in the year," says Bartlett. "We generally have a ton of guys show up at the Boat Show wanting new canvas. But we'll see if that's the case this year."
To get involved in the conversation, you can call your state senator and voice your opinion on HB04012014B. Or you can call one of the many sail lofts around the Chesapeake Bay and ask to be a part of the future of sailing.
