Fisheries Compensatory Mitigation
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FAQs
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What is fisheries compensatory mitigation?
Fisheries compensatory mitigation is generally a monetary compensation paid by offshore wind developers and provided to commercial and for-hire (charter) fishing vessels/operators and related shoreside support businesses for economic losses attributable to the construction, operation, and decommissioning of offshore wind farms.
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The Maryland Department of Natural Resources (MDNR) and US Wind signed a Letter of Intent (LOI) and are working on a Memorandum of Understanding (MOU) regarding fisheries compensatory mitigation. What is the LOI vs. the MOU?
MDNR and US Wind signed a Letter of Intent on July 8, 2024, to secure US Wind’s voluntary commitment to developing a fisheries compensatory mitigation package that exceeds what the federal permitting agency - the U.S. Bureau of Ocean Energy Management (BOEM) - would require. The final terms of the compensatory mitigation package are being discussed and defined by MDNR and US Wind with input from the fishing industry and utilizing data and information from a variety of sources. The final terms of the compensatory mitigation package will be recorded in a Memorandum of Understanding (MOU).
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What happens if MDNR and US Wind do not develop and sign an MOU at the end of this process?
In the absence of an MOU between MDNR and US Wind, fisheries compensatory mitigation would default to the requirements set forth in Section 6.1.1 of the BOEM Record of Decision for the Maryland Offshore Wind Project Construction and Operations Plan dated September 4, 2024. This requirement does not include things such as funding for any state-managed species, navigation equipment, training, working waterfront or other community resilience categories.
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What would the MOU commit US Wind to doing?
Directly contribute funds and/or support to three forms of fisheries compensatory mitigation.
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What are the forms of compensatory mitigation MDNR is scoping with US Wind?
a. A compensatory mitigation fund;
b. A navigational enhancement and training program; and,
c. A multi-use ‘Fishing Community Resilience Fund.’
The first form (a) is intended to compensate and mitigate direct losses and impacts to commercial and for-hire (charter) fishing that directly arise from construction, operation, and decommissioning of the project.
The second form (b) is targeted to enable commercial fishermen and for-hire (charter) recreational vessels to acquire or upgrade their navigation equipment and obtain training or participate in experiential learning events to aid in more effective and safer fishing in and around the project.
The third form (c) of compensation is intended to address Maryland-specific considerations for impacts to fishing that include things such as working waterfronts, fisheries-dependent businesses, and other factors.
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What would the MOU require of the Maryland coastal commercial and for-hire recreational fishing industry?
Nothing. Maryland fishermen are under no obligation to participate in any of the programs or claims processes.
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Can fishermen from other states qualify for compensation covered by an MOU between MDNR and US Wind?
Generally, BOEM’s direct compensation requirements acknowledge that fishermen from multiple states/ports may have fished in a lease area and should be eligible for compensation for impacted or lost revenue. The BOEM requirements for direct compensation for the US Wind project note the following ports:
a. Ocean City, MD
b. Cape May, NJ
c. New Bedford, MA
d. Indian River, DE
e. Newport News, VA
f. Atlantic City, NJ
g. Hampton, VA
h. North Kingstown, RI
i. Other Cape May, NJ
The BOEM guidance for the US Wind project also acknowledges that a state may establish a separate agreement. While eligibility criteria related to the MOU between MDNR and US Wind are not yet determined, some forms of compensation will likely allow fishermen from other states to qualify for compensation and other forms may be limited to Maryland fishermen.
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How are gear loss claims handled?
Fisheries gear loss compensation will be handled separately by individual developers. BOEM will require a lease holder, including US Wind, to maintain a gear loss claims procedure throughout the life of the project to support all fishermen impacted by project activities or infrastructure, regardless of homeport.
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What about shoreside seafood-related businesses? Can they be eligible for this compensation?
Yes. Shoreside seafood businesses (referred to as “shoreside support services” in the U.S. BOEM Record of Decision) impacted by offshore wind development are eligible to participate in fisheries compensatory mitigation. Please refer to Section 6.1.2 of the U.S. BOEM Record of Decision: Maryland Offshore Wind Project Construction and Operations Plan (dated September 4, 2024 and linked above) for more details. Should an MOU between MDNR and US Wind be signed, it is anticipated that support for shoreside seafood services would also be available in some form through the multi-use “Fishing Community Resilience Fund”. Please see FAQ #5F, above.
Information about this topic as it relates to the US Wind lease is available through the Fishing and Boating Service calendar events:
Meeting 1- 9/24/24
Meeting 2 - 11/12/24
US Wind and DNR Documents:
Information about the U.S. Bureau of Ocean Energy Management’s fisheries mitigation guidance process can be found on their
website.