Notes From an Environmentalist. Economic benefits of our energy transition in Salem.
ALEM — The land transaction leading to the Salem Offshore Wind Terminal played out Friday, an event overshadowed by the size of the community benefits agreement pinned to it.
City leaders have announced the transfer of ownership of vacant land around the Salem Harbor Footprint power station to partners at the Massachusetts Clean Energy Center, from Crowley Wind Services. Crowley bought the property in 2022 and stands to become its anchor lessee after selling it to MassCEC in the deal.
The state’s announcement of the deal focused on the transfer of property ownership as the news of the day, packed with quotes from 12 different local, regional, state, and private sector leaders. But City Hall’s announcement focused squarely on a now-complete Community Benefits Agreement “worth nearly $9 million in direct funding assistance to the community, as well as other non-financial benefits.”
The overall project is worth about $300 million, meaning the agreement makes up roughly 3% of the project’s overall costs.
“I’m incredibly grateful to Crowley and the many community organizations who helped make this CBA possible, and to the city staff who worked so hard to get it done,” Mayor Dominick Pangallo said. “This is a historic document, not only because of the value and support it will bring to so many critical city efforts — infrastructure, jobs, education, resiliency, and public safety, just to name a few — but because it represents a powerful commitment by all parties to advance this project with an equity focus.”
Highlights from the agreement include:
$1.25 million “for operational support for Salem Public Schools’ CTE/CTI programs,” with an additional $1 million “for capital costs, infrastructure improvements, training aids and facilities, and other related needs” in the programs.
$1.25 million “for the Salem Public Schools Pre-K Partnership.”
$1.25 million “for additional personnel in the Harbormaster’s Department due to the maritime operation of the terminal.”
A combined $990,000 for “specialized equipment and training” for Salem’s police and fire departments “due to the terminal’s construction and operation;”
$850,000 for improvements to the Essex and Webb streets intersection, a crossing of two busy roads prone to accidents right outside the construction area;
$500,000 or more “to support a new Climate Adaptation Fund to fund city sustainability and resiliency projects;”
$400,000 “in scholarships for offshore wind or maritime-related career paths and educational opportunities;” and
$250,000 “to support alternative fireworks for community celebrations.”
The agreement includes several commitments without dollar amounts attached to them. They include:
— “Crowley will target new hires from typically marginalized populations, including people from environmental justice communities, veterans, those living with disabilities, those experiencing housing insecurity, and the formerly incarcerated, and will work with seaport users to do likewise for their hiring;”
— Crowley will work toward “measurable benchmarks in terms of specifically hiring local workers (from within Essex County), BIPOC and immigrant workers, women, and union employees, with target percentages established at 3 years, 5 years, and 10 years of terminal operations;”
— “Crowley employees will participate in Salem Public Schools through guest speaking engagements;” and
— “Crowley will donate equipment from the terminal and from its broader operations around the globe for use as training and educational aids for Salem Public Schools CTE/CTI programs.”
“This agreement reflects that Salem is an environmental justice community and one that has lived for generations with the legacy of fossil fuel power generation and heavy industry impacts on our port and our neighborhoods,” Pangallo said. “Now, we’re ready to do our part to ensure a clean energy future for our community, our Commonwealth, and our country through the potential offered by offshore wind.”
Graham Tyson, vice president of Crowley Wind Services, said the company is “proud and grateful to successfully work with the city of Salem and its residents to provide a generational impact as partners and mutual stewards for the community’s benefit.
“The Community Benefits Agreement resulted from diverse inputs and engagement across the city in recognition of the economic investment we will create together,” he said. “Through this partnership, we can leverage the power of this milestone project supporting renewable energy to make people’s lives better.”
Speaking on the land transaction, Lt. Gov. Kim Driscoll said Friday marked “an exciting day for Salem as we realize the vision we had for the port under new leadership.” The efforts toward offshore wind started under Driscoll as mayor, after opposition formed against suggestions of residential development around Footprint.
“Harnessing the power of the harbor has always been key to Salem’s success,” Driscoll said. “This port once received clipper ships that brought international trade to our shores, and now will serve as a hub for offshore wind, driving economic development for the entire state.”
In the state’s announcement, Pangallo highlighted the property’s previous hosting of “a giant coal pile, oil tanks, one of the dirtiest power plants in America, and vast barges unloading coal by the ton.” Out of that, he said, Salem is building “a new, green energy future.”
“That work will be powered by labor from communities disproportionately impacted by our fossil fuel legacy and organized and trained for the clean energy economy that’s ahead of us,” Pangallo said, referencing the terms outlined in the CBA. “Here in Salem, when we’ve looked to the future, we’ve always looked to the sea and to what’s possible on its distant horizon. I’m so proud that Salem can be part of this important and historic effort.”
The announcements came as the city considers its options toward a new high school, and as that high school sees an ever-increasing surge in career-tech education demand. That only stands to help the city, he said.
“Not only are there funds that will be directed to these initiatives, but within the agreement, Crowley has also generously offered to provide other forms of support, such as guest speakers, paid internships, job placement support for CTE graduates, and donations of repurposed equipment for education and training,” Pangallo said. “As we continue to develop the plans for the future of Salem High School, all these resources will play a role in that process.”
Contact Dustin Luca at 978-338-2523 or DLuca@salemnews.com. Follow him at facebook.com/dustinluca or on Twitter @DustinLucaSN.