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I NW Coastal Zone Information Center 1~~~ 07 .m2 1 971Y MAINE COASTAL RESOURCES RENEWAL Property of CSC Library U.S. DEPARTMENT OF COMMERCE NOAA COASTAL SERVICES CENTER 2234 SOUTH HOBSON AVENUE CHARLESTON, SC 29405-2413 Fr4 "The preparation of this report was made possible by a grant from the New England Regional Commission as part of their public investment planning grant program. rtP- a "All data produced in this report are a result of tax-supported research %-- and as such are not copyrightable but they may be freely reprinted with (3 <the customary crediting of source." CONTENTS page Letter of Transmittal IV Summary Ix PART ONE: THE AQUACULTURE COMPONENT Introduction to the Aquaculture Component 3 Survey of Existing Situation 9 Analysis of the Factors of Aquaculture 13 Planning Implications 40 PART TWO: THE ENERGY COMPONENT PETROLEUM Introduction to the Petroleum Study 51 Survey of Existing Situation in the Maine Petroleum Industry 52 Forecast of Supply and Demand 69 Planning Implications of the Petroleum Study 73 ELECTRICAL POWER Introduction to the Electrical Power Study 81 The Present Status of the Maine Electrical Power Industry 82 Electrical Power Forecasts 89 Planning Implications of the Electrical Power Study 96 PART THREE: THE RECREATION COMPONENT Introduction to the Recreation Component 103 The Existing Situation in the Recreation-Related Industries 105 Participation Activities Associated with Maine Recreation 114 Commercial Aspects of Recreation 117 Forecasts of Recreation Demands 120 Planning Implications of the Recreation Study 127 PART FOUR: PROPOSED INDUSTRIAL RECYCLING - MULTIPLE-USE SYSTEM Introduction to Industrial Integration 135 Essential Characteristics of Proposed System 137 Specific Aspects of Major Subsystems 141 Conclusion - A Beginning 168 PART FIVE: IMPLEMENTING COASTAL DEVELOPMENT POLICIES Introduction 173 Acquisition and Development 174 Maine Land Development Authority 175 Implementation and the Planning Process 17 6 Summary and Conclusions 17 7 ;t ate of dAnim 11tgwiilte pparhment Xtate Ijlauuiun offisg 1~~~~~~~~SR Coaxt $rftf, A1IpotSa, clanste L143311 KENNETH M. CURTIS GOVERNOR PHILIP M. SAVAGE STATE PLANNING DIRECTOR July I, 1971 The Honorable Kenneth M. Curtis Governor of Maine State House Augusta, Maine 04330 Dear Governor Curtis: This is one of the first attempts to identify some of the major land and water uses of the Maine Coast-present and future. It is an attempt to deal in a more comprehensive and systematic way with the many and varied problems before us-to illustrate and illuminate the decisions to be made. Public policy, in the past, contained no such process. We have dealt with problems singularly and in isolation, with no clear idea of relationships or total results. Perhaps this modest beginning, this one element of a comprehen- sive coastal planning effort, can show that there is no reason to take a piecemeal approach any longer, that, indeed, it is quite possible to maintain a good environment for everyone while, at the same time, pro- viding the utmost opportunity for economic growth and fulfillment. Sincerely, PhiIi{ . i Savage State Planning Director PMS:cs SUMARa ML~~~~~~~~~ This study effort has been designed to strengthen the informational base for public and private investment decisions along with assisting Federal, State, re- gional and local coastal planning efforts in Maine. Most of the pressing questions and demands concerning the utilization of Maine's coastal resources can only be realistically answered after the existing evidence is collected, analyzed, examined and projected in regard to possible future action. Even then the answers will not be answers in the traditional sense, but rather they will take the form of choosing that combination of alternatives that will provide the greatest long term well-being of all the people in the State of Maine. Three principal topics have been singled out for examination by this study. The topics are: 1. Aquaculture 2. Energy 3. Recreation The topics are referred to as study components. Each component has been reviewed and analyzed with the following considerations in mind: development potential, economic contribution, institutional relationships and planning impli- cations. Our purpose is to define the degree of contribution that can be expected of these coastal uses and to define the extent and implications of their interrela- tionships. In addition, two other segments are included as an integral part of this re- port. They are: 4. A proposed industrial recycling - Multiple-Use System 5. A recommended method for implementing Coastal Development Policies. Part Four is devoted to the presentation of a proposal that would allow many coastal resource uses to be brought together in a way that would lead to mutual benefits for the participants. Part Five outlines the mechanisms needed to undertake a project of the type described. Our traditional way of coping with problems of this nature has been to attack them separately with little consideration for the interrelationships between one problem and another. The result usually takes the form of continued aggrevation of the situation rather than a solution. The orientation of this report centers around finding the interrelationships that exist between the study components by identifying problems and their underlying causes. A method is proposed herein which outlines an integrated, direct approach for turning problems (often labeled wastes) into resources for industrial entities, Four major problem areas were identified: 1. The current waste of physical resources along the coast. 2. The inadequacy of essential community services. 3. The severe lack of employment opportunities. 4. Lack of institutional flexibility and responsiveness to problems. This study attempts to define those areas of public, possible private, invest- ment which would be most beneficial for resolving these problem areas in Maine's Coastal Zone. Recognizing that the resources offered by the Maine Coast are experiencing urgent and growing pressures for utilization and development the following policy was established to guide our analysis: Uses should be encouraged that will optimize the intrinsic and real values of the zone and assure the greatest long-term social and economic benefits for the people of the State of Maine. We have focused our attention on particular aspects of the situation which have significant impact with regard to the Coast: Aquaculture, Energy and Recreation. The Aquaculture Component applies the major policy guideline to living marine resources. The aim is to protect and enhance these resources by promot- ing their safe and efficient harvesting and by encouraging the cultivation of new and existing forms of marine life. Maine's commercial fisheries are slowly de- clining and there is little public concern for their plight. Our goal is to improve the profitability of the existing fishing industry and assist in the advancement of aquaculture. The Energy Component is concerned with industrial development and marine transportation. All efforts to expand employment are encouraged if industrial development will not degradate environmental and human resources. One task consists of identification and development of suitable locations -for industrial expansion subject to public review and approval. Coastal policy also encompasses 'the development of the marine transporta- tion services necessary to provide support for existing and planned uses for the Maine coast. Maine's natural deep water harbors, unique to the East Coast, have made the area attractive to petroleum companies looking for ways to take advantage of the economies-of-scale that are inherent in the employment of the world's super tanker fleet. In addition, the cold oceanic waters along the Maine coast have particular merits in regard to the power industry. Nuclear power stations, destined to pro- vide much of our future electrical energy, require vast amounts of cooling water to condense steam used to drive huge generators. The Maine coast has been eyed as a possible answer to this cooling problem. Our concern is also with reviewing the energy picture in Maine, specifically the petroleum industry and the power industry. We will highlight the advantages and disadvantages associated with coastal decisions that involve the energy 'in- dustries. Maine has long carried the label of vacation spot of Northeast; much of the attraction being the undisturbed beauty of the Maine coast. In recent years the recreational appeal of the coast has been jeopardized. Beaches are becoming crowded, considerable land has been purchased by large land developers for conversion to vacation home tracts, a boom in outdoor camping has caused over- flows at our campsites, the demand for shoreline property by industry has lead to conflict with recreation interests. The recreation component which deals with recreation-related activities along the coast looks toward ways to develop, operate and maintain recreation and tourist services throughout the coastal zone for the enjoyment of the State's citizens and the economic welfare of the State; also to restrain development which in fact, degrades recreational resources. Efforts should be directed toward de- veloping a proper balance in recreational services as related to predicted de- mands and resource capabilities. The following schematic shows the sequential framework around which this study has been built. The three components, Part One, Part Two and Part Three of the study are handled as independent subjects. Part Four, a multiple-use system is a logical extension of the initial work and, finally, Part Five is focused on the important task of determining how some of these proposals might take place. Footnotes have been tabulated and placed after each study component. Reference is also made in this report to an appendix. The appendix contains the statistical data collected during the study and will be released as a separate docu- ment by the State Planning Office. AQUACULTURE COMPONENT PROPOSED IMPLEMENTING INDUSTRIAL COASTAL ENERGY RE CYCLING- -DEVELOPMENT SUMMARY COMPONENT MULTIPLE-USE POLICIES SYSTEM RECREATION COMPONENT The State of Maine is faced with many divergent trends. Many of these trends revolve around the often conflicting demands for continued environmental quality and economic stability. How and when we deal with them will do much to shape the State's future. The how of this question is not easily answered. This study presents one alternative - the industrial recycling through multiple-use concept. We have focused on this concept because it provides a way of bringing together these seemingly conflicting demands; a concept that allows several in- dustries to integrate their inputs and outputs to their better overall economic ad- vantage than if they operate as separate entities and at the same time the concept maintains Maine's environmental integrity through recycling. It is also a means of correcting the present waste of our physical resources, which is proceeding at a frightening pace. Soils, water, fuels and many other resources are suffering ruinous depletion, pollution, or destruction from man's overuse. The when of the question is far easier to answer - the time is now. We have continued to operate with approaches that rely on stop-gap measures for too long. We feel it is far more productive to take the initiative, outline our goals and how to achieve them, and then get down to the work of turning an idea into an operational reality. P~~~~~~~~~~~~~~amma OIE IMO Ilk T~~~~T-m~uI PART ONE: AQUACULTURE INTRODUCTION TO THE AQUACULTURE COMPONENT Aquaculture can be broadly defined as: "Any directed effort by man to increase the yields of plants and animals in either fresh water or salt water."' In essence, aquaculture is the farming of water as opposed to agriculture, the farming of land. There has been a great deal of discussion concerning the potential signifi- cance of aquaculture as it relates to Maine's coastal areas. This interest has been generated partially as a result of successful projects elsewhere in this country and other parts of the world and partially as a result of the need for a viable new industry for Maine. Maine aquaculture is still very much in its infancy. Considerable research and development has been initiated with every indication pointing toward an in- creased role in the future development of Maine's coastal resources; yet many problems must be resolved before aquacultural enterprises can be firmly estab- lished on a commercial basis. The objective of this component is to identify and define the degree of con- tribution that can be expected from aquaculture as it develops and interacts with other coastal uses. This is undertaken within a planning context to provide the necessary information for meaningful public investment decisions and provide realistic input for the Maine Coastal Development Plan. The critical factors associated with aquaculture - bio-technical, environ- mental, economic, legal, social and cultural - are analyzed in detail to deter- mine the general characteristics of aquaculture. Then the specific assets and constraints to its development in Maine are examined and finally planning im- plications for the Maine coast are reviewed. Scope and Methodology Aquaculture, although old in concept, is relatively young and largely unde- veloped in technique. Much of the specific technical information is not readily available nor is it easy to interpret for planning purposes. Yet if aquaculture is to be a major use of Maine's coastal resources, efforts must be made now to ob- tain the necessary information and preparations must be made to accommodate this potential use. As part of the State Planning Office's responsibility for coastal planning, this study effort is, therefore, oriented toward: 1. Outlining the known bio-technical and environmental requirements for potential types of aquaculture in Maine. 2. Outlining essential economic and institutional requirements for aqua- culture development. 3. Delineating, whenever possible, the requirements associated with spe- cific land and water locations for various types of aquaculture. 4. Defining priorities and compatibility criteria for different forms of cul- ture as well as the possible interaction with other coastal uses. 3 Background To provide a proper perspective regarding aquaculture in Maine this section will begin with a brief historical analysis of the Maine fishing industry. The Gulf of Maine, bounded on four sides by the coast of Maine, Nova Scotia, Cape Cod and Georges Bank, has been a rich fishing ground since the colonization of the New World. Currents sweeping from the ocean floor rise along the Continental Shelf to surface at Georges Bank, carrying the volumes of food which attract great varieties of fish to feed on the food and each other. Less than 100 fathoms in depth, the Gulf waters warm as they circulate in a great counterclockwise manner toward Nova Scotia. The geographic location of Nova Scotia permits habitation of the Gulf by species requiring warmer water by de- flecting the chilly Arctic surface currents, thus making the Gulf a haven for marine life on the edge of the harsh North Atlantic.2 America's earliest colonists quickly realized the wealth of the Georges Banks fishing grounds. Fishing increased steadily until the early 1800's when an ex- tensive mackerel fishery flourished at Eastport. Herring catches grew from then until the turn of this century, when over two hundred smoke houses operated along the Maine coast. As smoked herring faded in popularity, a process was devised to package sardines in hermetically sealed containers, giving birth to the sardine industry. By the early 1900's forty-five sardine canneries packed herring caught in the Gulf of Maine. Until only recently, when the industry has been forced to import sar- dines from Nova Scotia, the production of the sardine industry was greater than any other Maine fishery. Technological innovations in canning and shipping methods greatly expanded markets accessible to the fishing industry. The processing and sale of several species such as menhaden flourished and then failed. The menhaden fishery, after growing to a multi-million dollar industry in fifteen short years, crumbled suddenly when the fish disappeared from coastal water in 1878. Fishing emphasis shifted to the lobster after the disappearance of menhaden. To guarantee survival of the species, the State Legislature limited the ways lobster could be taken, and the lobster pot industry prospered. The landed value of the annual lobster catch has ballooned from half a million dollars in 1880 to nearly 16 million dollars in 1969.3 In recent years, however, the catch has declined from a peak of 24 million pounds in 1957 to an average of 20 million pounds in 1968-1969. Since the turn of the century, the extent of the harvesting of numerous fin- fish and shellfish has demonstrated the potential of becoming an important indus- try in Maine. Several such species are the clam, scallops, mussels, bloodworms, lobster, whiting, herring, and shrimp. However, due to either an inability to guarantee a constant supply to retailers because of technological problems as- sociated with preservation, or to an inability to improve catches because of in- creased foreign competition, none of these species has assumed the economic im- portance experts had hoped. Extreme fluctuations in yearly catches of a particular species can have devas- tating effects on an infant fishing industry. The heavy Northern shrimp catches 4 of 1965 through 1969 instigated investment of considerable capital in boats, gear, and processing plants. Then in 1970 the catch fell by 20% and the poor fishing is apparently continuing. An official of Seafoods U.S.A., a Damariscotta based sea- food distributor, estimates that the combined shrimp processing plants in Maine are capable of processing approximately one million pounds of shrimp per day. Applied to the record catch of 1969, this would mean twenty-five days of full production. Unfortunately, it also means that invested capital lies idle for the remaining 340 days of the year. The finfish industry also suffers from intensive foreign competition. Modern, efficient West German and Russian trawlers have so damaged fishing off our coast that the Federal government is currently negotiating regulation of Atlantic fishing activities with these governments. The Canadian government has recently strengthened its ground-fish fleet through vigorous subsidy programs. Each of these developments has diminished the effectiveness of Maine's fishing fleet and decreased production by related on-shore processing industries. Consciousness of these problems has induced a slight pessimism in state offi- cials and fishing industry representatives about the future of commercial fisheries in Maine. The myriad problems of labor and equipment costs, increased foreign competition and fluctuating catches appear to have no quick or simple solution. However, despite these obstacles, commercial implementation of the techniques of aquaculture looms as a distinct possibility. Aquaculture is an established field in other parts of the world with many of the advanced nations presently engaged in culturing techniques. The leaders are those nations with a large dependence on seafoods such as: Japan, Norway, The Netherlands, Spain, Portugal and France. An example of one technique is the Norwegian method of overlaying a body of salt water with a layer of less saline water. This acts as a lens to increase temperature.s Commercial aquaculture projects have only recently been established in this country. Many major firms such as Armour, Corn Products Co., Ralston Purina, Monsanto, United Fruit and others are engaged in efforts to establish commercial- ly viable products. Trout farms have been operating in the midwest for some time; however, commercial efforts for salt water species is just becoming attract- ive. A large effort is currently underway in the Puget Sound area of the Pacific Northwest. A consortium headed by the National Marine Fisheries Service is undertaking a Pilot Salmon Research Farm Project to raise 1'/2 pound pan salmon. These fish will be raised entirely in captivity and will require 14 to 16 months to reach marketable size. There are no significant commercial projects in New England at this time; however, many research projects have been conducted with favorable results. Viable techniques appear to be available with the State of Maine having one of the highest potentials to reap these benefits. An example of what can be done has been demonstrated in Lake Charlotte, Nova Scotia, by Sea Pool Fisheries, Ltd.6 This firm is engaged in raising trout and salmon in a closed-cycle, temperature controlled rearing system. They expect a harvest of two million pounds by the end of 1972 with a long range 5 estimate of 4 million pounds. Their facilities include pools which can be filled with any combinations of sea water and fresh water. The water is continuously recirculated through gravel and oyster shell filters and heat can be added from the waste heat of an oil-fired power plant. This provides the ability to regulate temperature, salinity, pH and recirculation to enhance the growth stages and control disease. The facilities currently use a 90% recirculation rate which pro- vides for the conservation of water, lower heating costs, and easier control of the rearing environment. The establishment of commercial aquaculture projects in Maine is just around the corner. Such efforts can supplement rather than extract from the ecology of the sea. They will capitalize on several unique properties of the sea. First, the sea is three dimensional in production capacity, while land is essentially two di- mensional. Second, water's density lessens the effects of gravity on its inhabitants - thus less food energy is expended in building bones to resist gravity and in moving about to obtain food. Lastly, due to water circulation and the suspension effects of water, organisms usually do not need to search as far for food and seldom encounter food shortages. These properties of the sea do not necessarily indicate that we must go to the sea for food that is already there. Rather, we must turn to the sea because, after sufficient research, we may perfect techniques which will allow us to realize the sea's potential to produce food more quickly and more economically than land. Definition of Aquaculture Over the years we have developed a highly sophisticated science of agri- culture to maximize the production of foods on our lands. Yet, the development of aquaculture, producing aquatic food products, is relatively unknown in the western world. Recently, however, it has become apparent that land alone can- not supply our needs, so we have begun to turn to the sea. Yet we now fish the oceans so thoroughly that we may soon destroy a possible solution to the world food dilemma - the intricate chain of life in the sea. If the sea holds the solution to improving the food situation, the quest for that solution will focus on aquaculture. Because we still hunt on the sea, and have not yet learned to farm it, our familiarity with aquaculture is considerably less than our familiarity with agriculture. A science of aquaculture is develop- ing but its shape and content are as yet unclear. This uncertainty is reflected among aquaculturists at all levels. Definitions of aquaculture by noted experts vary considerably as demonstrated by the few provided below: Aquaculture - Any directed effort by man to increase the yield of plants and animals in either fresh water or salt water. T. A. Gaucher. The cultivation or propagation of water dwelling organisms. Our Nation and the Sea, Report of the Commission on Marine Science, Engineering and Resources. Any increase in fish production, by whatever methods, above what can be produced naturally. Dr. C. F. Hickling 6 The rearing of aquatic organisms under controlled conditions using the techniques of agriculture and animal husbandry. John E. Bardach - The Status and Potential of Aquaculture - May 1968 - U.S. Dept. of Commerce The complete control over a water dwelling organism in every phase of its life. C. P. Idyll - The Sea Against Hunger - Crowell, 1970 Promoting or improving growth and hence production of ma- rine brackish waters, plants and animals by labor and atten- tion, at least at some stage of the life cycle, on areas leased or owned. Usually intended as a profit making venture. E. S. Iverson - Farming the Edge of the Sea Subjection of an organism to at least one manipulation before harvest or capture. Ryther and Bardach - 1968 These definitions represent the different scientific conceptions of aquaculture. Their major point of differentiation is the degree to which man must interfere with the life cycle of an organism for the process to be known as aquaculture. Ac- tivities commonly known as fish management, such as the seeding of ponds with fish eggs, have-been considered by some scientists to be aquaculture. With the ad- vent of more intensive aquatic research, this opinion has diminished in popularity. Other opinions, as noted above, range from interference "at least at one stage of the life cycle" (Iversen) to the "controlled condition" required by Bardach, to Idyll's call for "complete control over a water dwelling organism in every phase of its life." In practical terms, releasing juvenile trout and salmon in their natural environment after raising them from eggs would conform to Iversen's definition. The growing of clams in a bacterially or thermally polluted flat is an example of cultivation under Bardach's "controlled conditions." Idyll's definition is met only by aquarium types of production and perhaps by recent attempts to raise lobster and trout in the cooling pools of nuclear power plants. In an attempt to resolve this semantic jungle, two distinct types of aquacul- ture will be referred to herein. These are "intensive" and "extensive" aquaculture. Intensive Aquaculture: This includes cultivation processes which have a sig- nificant degree of interference with the life cycle of the organism. Intensive aquaculture is characterized by small production units, intensive manage- ment, dense stocking, force feeding, stock selection and manipulation, high capital costs, high operating costs, and produces a high yield per unit area. It is furthest removed from the unpredictable forces of nature. An example would be the raising of organisms on unnatural foods, as trout or liver, in a controlled environment such as an aquarium. Extensive Aquaculture: This includes cultivation processes which have a minimal degree of interference with the life cycle of the organism. Extensive aquaculture is characterized by large production areas, low management, low capital cost, low operating cost and low yield per unit area. Examples would include specie transplantation and improved harvesting as in the case of sedentary shellfish such as clams, quahogs, and mussels. 7 Thomas A. Gaucher, a Rhode Island natural resources consultant, has closely analyzed the internal principle of the more intensive aquaculture enterprises. Intensive aquaculture depends less upon market analysis and more upon "mini- mizing dependence on nature" to produce a profit. According to Gaucher, the major sub-systems of intensive aquaculture are: 1. The hatchery to support the spawning, hatching and larval culture re- quirements. 2. The nursery to support juvenile development. 3. The ranging sub-systems to support the post-juvenile development to market size. 4. The water sub-system including provisions for waste disposal and, in some cases, recycling of processed water. 5. A feed production and feeding sub-system. The most widely known aquacultural enterprise which approximates the above model is the trout raising farm of Sea Pool Fisheries, Ltd., of Nova Scotia. A large and initially expensive operation, this farm employs the most recent feed- ing techniques, three types of water and numerous other technological innova- tions. The operation is not only economical but produces a product far superior to the foreign trout which previously dominated the market. The basic advantage of this type of aquaculture is that it is self-perpetuating. Though the initial capital investment is large, no natural stock is depleted and minimal reliance is placed upon an unpredictable natural environment. It is a truly economical operation. Aquaculture Activities in Maine Basic aquacultural research has been performed by the Maine Department of Sea and Shore fisheries for many years. Only recently have the public and federal, state, and local governments shown an increased awareness of the poten- tial for aquaculture in Maine. This interest has generated a much accelerated effort to establish a viable aquacultural industry. The institutions with aquacul- ture interests in Maine and the ongoing and planned projects are summarized in Table 1-1. AQUACULTURE ACTIVITIES IN MAINE ORGANIZATION ACTIVITY LOCATION TIME FRAME Department of Sea and Raft Culture of Eastern Oysters Spinney Creek Ongoing Shore Fisheries Raft Culture of Eastern Oysters Cousins Island Ongoing Raft Culture of Eastern Oysters New Meadows River Ongoing Raft Culture of Eastern Oysters Marsh River Ongoing Lab Culture of European and Eastern Oysters, Hard Wiscasset Ongoing and Soft Clams, and Blue Mussels Lobster Culture Spinney Creek Planned for 1971 Lobster Culture Cousins Island Ongoing Lobster Culture Boothbay Harbor Discontinued Feasibility of Air Curtain for Thermal Mixing M.I.T. Ongoing Cousins Island Resumed in 1971 Environmental and Biological Research on Lobsters, Boothbay Harbor Ongoing Northern Shrimp, and Blood and Sand Worms Wiscasset Ongoing Pollution Studies-Thermal, Pesticidal, Heavy Metals, Boothbay Harbor Ongoing and Bacterial Irish Moss Studies Casco Bay Ongoing Department of Inland A Wetlands Inventory State-wide Near Fisheries and Game Completion A Natural Resources information retrieval and analy- State-wide Operational sis system in'71 TABLE 1-1 AQUACULTURE ACTIVITIES IN MAINE ORGANIZATION ACTIVITY LOCATION TIME FRAME The Darling Research A study of the effects of dredging in Belfast Harbor Belfast Ongoing Center of the University and spoil of Isle au Haut of Maine. Seagrant proposal to cover: Deep Sea Scallops, Oys- Walpole Ongoing ters, Blue Mussels, Rock Crabs Survey of the hydrography, sediments, Plankton, ben- Wiscasset Ongoing thos and the commercially important plants and ani- mals including finfish, in the Montsweag-Back River area, Maine Yankee Atomic Power Company An environmental survey of the Damariscotta River Damariscotta Ongoing estuary Survey of the macroscopic algae of the Maine coast State-wide Ongoing A study of the food of Pleuragramma Antarcticum Walpole Ongoing with comments on net feeding Heavy minerals study of the St. George estuary, Coast St. George Ongoing of Maine River Small-scale distribution of estuarine phytoplankton Walpole Ongoing AQUACULTURE ACTIVITIES IN MAINE ORGANIZATION ACTIVITY LOCATION TIME FRAME. NRC A demonstration Blue Mussel project Not yet chosen Contemplated Project REASON An investigation of possible soft shell clam industrial Maine's polluted expansion clam flats Ongoing Bureau of Commercial A lobster culture program West Boothbay Fisheries- Harbor Ongoing Citizens Who Care Raft culture of Blue Mussels Long Island Casco Bay Contemplated Dept. of Economic Compilation of non-biological data State-wide Ongoing Development Malpec Shrimp marketing and Trout culture Boothbay Ongoing Harold Arndt & Larry Oyster culture Woolwich Contemplated Cole Dead River Company Lobster Research & Marketing Bangor Ongoing Salt Water Farms Lobster Research & Marketing York Harbor Ongoing The Research Institute of Formation of the TRIGOM State-wide Contemplated the Gulf of Maine Task force on Aquaculture (TRIGOM) 4- -4-' A - - - '\ \ 4 4- -- /44 - - -J - - / - ' I, 4- -- 4-4- '4- - 7- A --' - - ANALYSIS OF THE FACTORS OF AQUACULTURE The suitability of various aquatic species for culture in Maine is dependent upon a wide variety of factors. These factors can be grouped into five general categories: bio-technical, environmental, economic, legal, social and cultural. Each category is analyzed in the following sections to determine current and foreseeable constraints, incentives, and planning implications for aquacultural enterprises. Bio-Technical factors The general bio-technical factors of concern to aquaculture are: 1. Problems relating to species biology such as control, supply, breeding, disease prevention, and nutrition of adult species and their progeny. 2. Problems of aquacultural ecology such as water and subsoil chemistry and fertilization as well as ecological manipulations permitting use of different areas of the water column. 3. Technological problems such as building and retaining of enclosures and the devising of harvesting machinery. The extent of knowledge currently available on the above factors is severely limited. Marine biology is, for the most part, a young, although rapidly develop- ing science and thus our understanding of the sea and its creatures is, at present, woefully deficient. Furthermore, much of the present aquacultural knowledge that does exist is for warm water species whose environmental requirements are more conducive to rapid growth and whose bio-technical factors are better known. Many of the behavior patterns, development stages, and nutritional re- quirements of the species that have been suggested for culture in Maine's cold water environment have yet to be determined through extensive research efforts. Species that have been suggested as possibly suitable to culture in Maine cover a wide range of marine species and the available knowledge on each varies enormously from specie to specie. The marine experts consulted and literature reviewed about species most likely to be cultured usually based their selections on innumerable factors, both objective as well as personal. Generally, however, the selection factors and char- ac:eristics can be described within four, basic categories: the characteristics of the specie, its environmental requirements, presently or possibly employed methods of culture, and limitations to culture. Information gathered concerning each specie suggested is presented according to these four basic categories. The fol- lowing table summarizes 'this information. No attempt at an exhaustive technical study has been made. A brief study of the- following table will, however, afford the reader a general knowledge of a specie and its aquaculture possibilities in Maine. IBM-~~' Table 1-2 CHARACTERISTICS OF POTENTIAL AQUACULTURE SPECIES FOR MAINE GBLOODyr dWORM aIDENTIFYING FEATURES SOME IMPORTANT ENVIRONMENTAL METHODS OF CULTURE LIMITATIONS TO CULTURE (Glycera dibranchiata) REQUIREMENTS A pink marine worm up to 13" in length with Better survival rate correlated with tempera- Not presently cultured. Efforts generally Larvae difficult to raise. Specie die after a proboscis with prongs that can be extended ture in the range of 46.6� to 48.80 F. Upper concentrate on improvement and retrieval of spawning. Larvae culture studies now in for procurement of food, and a tapered tail. water temperature tolerance of 89� F. Occurs natural yields. Hardy and matures to size progress. Sexes are separate. In captivity it swims in in intertidal and shallow subaqueous areas. quickly. Very prolific. Research now directed corkscrew fashion except during spawning, to increase growth rate by increasing tempera- when it swims with lateral undulations of the ture in larval and adult stages. body. Emits steady stream of sperm, and female explodes with all eggs emitted at once. SANDWORM One of the most common marine worms, Burrows in deep sand or mud. Occurs under Not presently cultured. Efforts concentrated Experimental development of eggs to date (Nereis virens) reaching a length of 18 inches. Nocturnally stones. Close correlation between sea water on harvesting of subtidal sources by mech- unsuccessful. Species dies after spawning. active and is typically both carnivor and temperature at spawning and supply three anical methods could expand yield of both herbivor. Non-spawning sandworms are char- years later. Most abundant at mean low water marine worm species. acteristically reddish-brown. Male is cream mark. colored just before spawning, strong steel blue during spawning, and female dark green, usually, during spawning. Visibly spawning worms are males while females are hidden from sight. ROCK CRAB A decaped crustacean with a hardened outer Prefers mud with vide variations in tempera- Seeded but not cultured in captivity. Small meat yield per organism compared to (Cancer Irrozatus) shell and five pairs of jointed legs; a crawler, ture and salinity. lobster. Passes through several moultings carnivorous. before maturity. Must be shucked by hand which is uneconomical. If pressure continues on lobster stock and mechanical shucking can be developed there is considerable potential for this species. JONAH CRAB A decaped crustacean, larger than the Rock Prefers rock bottoms with wide variations in Seeded but not cultured in capitivity. Same as above. (Cancer borealis) Crab, also carnivorous and a crawler. temperature and salinity. LOBSTER A long decaped crustacean. Crawls and Optimum temperature in relation to greatest Cultured, but not yet at competitive prices. Five to six years to market size. Canabalistic (Homerus americanus) swims short distances. Eats many forms of catch 46.�-46.5� F. Boulders and small rock Three dimensional shelters and cages used. in close quarters. Easy prey for finfish preda- marine organisms and vegetation, such as bottoms for hiding places. Shallow water Breeding techniques can be employed. Shed- tors unless cages used. Only one quarter of mussels, wheeks, clams and crabs, are scav- sought in spring, deeper water in winter. ding peaks at highest water temperatures, weight is meat. engers. Desirable market size 10"-12" in usually in Sept. Natural areas seeded with length, 11/2 to 2 lbs., female has 3,000-100,000 food sources to increase catch. Thermal eggs. effluent from power plants shows lobster can be raised in some promise. Under controlled conditions, 3 years to market size. SEA SCALLOP A bivalve mollusk which resembles a Shell Oil Maximum catch related to water temperature Harvested naturally by dragging. Research Will spawn in hatcheries, but larvae die. Low (Pectin magellanicus) Company Symbol. Large (5-6 inches across) 45.3� to 47.1� F. Thrives in deep water, espe- underway to develop scallop hatchery and meat yield. Slow growth even at high tem- radially ribbed shell. Swims in a jumping cially in summer months. Especially abundant locate juveniles on experimental scallop area. perature. Seed is susceptible to large current fashion by opening and closing its shell. Very in waters 20-50 fathoms. Slight temperature increase increases spawning variations. With large cyclical variations in hardy, feeds on phytoplankton. and fertilization. natural supply about every ten years. BLUE MUSSEL Extremely prolific bivalve mollusk having Prospers in very saline water and low temp- Presently cultured in Europe on rafts and poles Susceptible to disease, predators, and parasites. ( Mytilus edulis) elongated narrow shell and cylindrical foot. eratures. Also requires high light intensity. in shallow beds. Large numbers form in Meat easily poisoned by siphoned pollution or Dark blue exterior and pearly interior. Sexually Prospers on solid objects in the intertidal zone clusters. Easily cultured without artificial germs. Often develops pearls. Low consumer mature at first year. Hardy, siphons plankton and at all depths. Optimum survival associated propagation. Extensive marketing needed to acceptance. for food. Develops bisus threads which adhere with temperatures between 59� and 68� F. dispose of existing supply. to solid objects on the surface. Many mussel attaching areas in intertidal areas are destroyed by scouring ice in winter. 15 IDENTIFYING FEATURES SOME IMPORTANT ENVIRONMENTAL METHODS OF CULTURE LIMITATIONS OF CULTURE REQUIREMENTS SOFT CLAM A bivalve mollusk with a thin shell and long Tolerates a wide range of salinity and tern- Major predator, the green crab and survival Difficult currently to propagate under con- (Mya arenaris) siphon. Reaches 4-5 inches in diameter. perature. Prefers stable sediments with high rates closely keyed with abundance of this trolled conditions. Highly susceptible to pollu- Burrows to depth of approximately 21/2 times permeability. Optimum survival temperature specie. Rotation of naturally occuring popula- tion and predation. its length. Found in marine sediments, inter is 45.3� to 46.6� F. tion based on size, distribution and growth and sub-tidal areas. will generally increase crop. Growth rates in- crease with moderate increases in temperature. Significant increases in yields through mechan- ical dredging, protecting and transplating of small clams. Bacteriologically polluted soft shell clams can be purified through ultra-violet light or through self-purification by pure water. Proper management of existing resource pre- cludes need now of artificial propagation. HARD CLAM A heart shaped bivalve mollusk, called little Prospers on shallow bottoms with little tidal Cultured by removing seeds from exposed Cannot tolerate tidal scouring. Susceptible to (Micronaria mercenaria) necks when small, a Cherrystone when scouring, but good water movement. Usually coastal areas and redistributing them to reduce predators and pollution. Susceptible to disease medium sized, and a Quahog when large. A found between tides and on shallow gravel, density and prevent winter exposure. Can be when cultured intensively. round ovate, thick hard shell. Short siphons, sand or muddy bottoms. dredged. Easy to artificially propagate. Po- lives in a shallow burrow. Quahog can reach tential in selected areas of Casco Bay. To im- size of up to 6 inches in length. prove yields is being successfully cultured intensively in commercial laboratories. EUROPEAN OYSTER A round, flat bivalve mollusk of 3-4 inches. Prefers deep water with no tidal exposure. Cultured in floating trap at 100 square yards. Cannot tolerate low temperatures. Reproduc- (Ostrea edulis) A filter feeder. Alternatively male or female. Conventional hatchery techniques employed tion sporadic. Laboratory induced spawning Reaches sexual maturity in winter months. successfully. Spawn with rising temperature is difficult and costly. Four years to market in the spring. size. NORTHERN SHRIMP A long bodied decaped crustacean which dur- Favors water temperature of 44.6� to 46.9� F. Better management holds best promise for Eggs survive best in cold water. Sensitive to (Pandalus borealis) ing three years is male, turning to female and Migrates to live in cold bottoms of soft mud increased yields. Not presently cultured corn- very warm water. Extremely vague life cycle. egg-bearing in fourth year. and sand, and found in greatest numbers in mercially. Temperature increases both growth western areas of Gulf of Maine. rates and fertility of adults. Successful tech- niques in culture of warm water. FRESHWATER SHRIMP A long decaped crustacean larger than North- Freshwater wet lands or brackish coastal wet Presently cultured in Asia and Florida in Very sensitive to oil or chemical pollution. (Machrobrachium cercinas.) ern Shrimp and nearly the size of the lobster. lands. Requires warm water, warm water ponds. Larval stages require Requires warm water. Cannot survive at Frequently reaches 9 inches in length. seawater and laboratory care. Basic research temperatures below 23.� C. 250,000 eggs per female. It is an exotic specie. continues on temperature and salinity tolerances. SALMON Small head, graceful body one fourth as deep Differential temperatures for egg incubation, Cultured in holding water and raceways. Fed Requires large volumes of cold high quality (Salmo salar) as long. Blunt nose, gaping mouth, forked fry development, and growth of young fish. high protein diet. Smolting pan held under water in which to grow. Susceptible to a tail. Bluish-brown back, silvery belly, 10 lbs. Pure fresh water with gravel stream bed for controlled light conditions. variety of diseases and parasites. Sensitive to average. Spawn in Oct.-Nov., 8-10,000 eggs. spawning. Ocean sea water for adult growth. low levels of oxygen and high concentrations of nitrogen. Requires specialized diet. TROUT Smaller than the salmon, but of the same Same requirements as for the Atlantic Salmon Cultured in intensively controlled growing Requires a large volume of cold high quality (Salmo qairdeneri) build. Bluish on back, speckled sides and except sea water not required. pools. Fed a special high nutrient, low waste water in which to grow. Susceptible to water belly. Sides marked with a long pinkish streak, producing diet. Market size in eight months. borne diseases. Water conditioning systems Feeds on small organisms. Presently cultured in Japan. are extremely expensive. EEL A voracious, elongate, snakelike fish having Fresh or brackish water until sexually mature. Limited culture in Japan. Wide range in diet Slow growing, taking minimum of five years (Anquilla nostrata) smooth slimy skin. Brown above, yellow sides, Sea water in which to spawn. Adapts well to and tolerant of wide range in temperature and to maturity. Spawns in Atlantic, near Ber- white bottom. Large pelvic fins, median fins varying ranges of temperature of dissolved dissolved oxygen concentration. Highly pro- muda. Dies after spawning. Little market confluent about tail. At maturity 2' long, 9 lbs. oxygen. lific, 10,000,000 eggs. High market demand demand in U. S. in weight, nocturnal. in Europe and Asia. ALEWIFE Similar to herring, with slightly heavier and Prefers shoreline areas of lakes and ponds for Not presently cultured. Caught returning to Three to four years to maturity. Requires (Alosa pseudoharegus) deeper body. Projecting lower jaw, saw spawning, although will spawn in deadwater parent streams in late April through early fresh and salt water during different phases toothed belly. 10"-15", 14 ounces at maturity. pool & riffle areas of streams. Egg develop- June. of its life cycle. Primarily a plankton feeder. Plankton feeder - with some small fish. ment best at 55�-60� F. Spawns in fresh and Market demand fluctuates with availability of brackish water areas. large volumes of fish. SEAWEED A red algae, a small seaweed growing attached Located just above water level to a depth of Not presently cultured. Mechanical harvesting Care in harvesting needed to protect, holdfast Irish Moss (Chondrus cripus) to rocks, 2" to 10" in height, sturdy perennials, about 20 feet. being pursued as major current costs of de- or naturally occuring fields can be depleted in short, repeatedly branching near tips, multiple veloping products is hand-raking harvesting a few years. branching giving a crisp tufted appearance limiting individual raking to 400-500 pounds somewhat resembling parsley. during 4-5 hour low tides. 16 Environmental Factors The Maine coastal environment has long been praised for its tInique variety and breathtaking beauty. Recently, Maine's unique environmental features such as its undersea topography, its indented and varying coastal orientation with a southern exposure and its relatively unspoiled ecological configuration have re- ceived increasing attention as valuable assets for aquaculture development. Other aspects of the Maine coast, however, are of dubious and, in some cases, detrimental value to aquaculture. Such features as extreme tidal shifts and resultant currents in eastern portions of the Maine coast make the introduction and survival of marine life in this area difficult. The flocculent nature of this por- tion of the coast along with extreme tidal heights (18 feet in Eastport, Maine) have the ancillary effect of virtually scouring the sea bottom in many unprotected coastal areas and thus eliminating chances for marine growth. Such tidal varia- tions could also adversely affect maneuverability and harvesting operations of many potential surface aquacultural enterprises. However, for most of the coast (Kittery to Machias) the tide is less severe (8 to 12 feet) and can be an asset by providing good circulation systems for food and nutrient distribution. Another critical requirement for growth of marine species is favorable tem- peratures. Maine's coastal waters are not only cold but experience extreme sea- sonal fluctuations in temperature with the effect of inhibiting continuous specie growth. In winter, marine organisms must expend considerable amounts of energy simply adjusting and maintaining metabolic rates in response to tempera- ture changes. With more energy being expended for metabolic functions, less energy is available for food hunting and fish growth. Energy requirements of fish in capturing and consuming prey, in defending territory, and in operating energy (metabolism) can be large. Maximum production of fish will occur where minimum extraneous energy efforts are involved. By reducing these extraneous energy costs to a minimum, food conversion and growth rates are increased. As stressed by Brett, because fish have a low maintenance metabolism (provided temperature control is optimum for the species) they form one of nature's best food converters.s There is, however, evidence to suggest that highly favorable nutrition requirements can possibly offset the slowed growth experienced during cold water periods. Oysters, for example, can apparently be grown in Maine almost as quickly as they can be grown in warmer waters. This is more than likely a result of the quality feed and nutrient available for oysters in Maine waters. Salinity is also an important environmental factor to the development of many species. Salinity shifts are caused by increased fresh water runoff during the spring thaws. Such rapid seasonal changes can be disastrous to extensive sea farmers of salinity sensitive species. Another environmental factor in aquacultural development is the issue of water quality. Not only is water quality essential to most types of aquaculture, but that quality is threatened by the very activity which demands it. Intensive forms of aquaculture pose as severe a threat of water pollution as any other large-scale industry. The effect on water of raising 50,000 lbs. of salmon, for example, is equivalent to the pollution load of a city of 10,000 people. Recycling of waste water from aquaculture enterprises will be a necessity. 17 MAINE COASTAL ZONE (:. BANGORr ACMHAs .\ AUGUSTA 0 ACRES PERCENT OF POLLUTED ACREAGE 0 -20 I 21 -40 '''ZI 41-60 / g~ e~ * -' d l~ \61 -80 PORTL AND i 81-10 0 .:~~. �~ a t I a n t i c o c e a n I~ FSTATE OF MAINE/ STATE PLANNING OFFICE/ EXECUTIVE DEPARTMENT In another section of this report, consideration is being given to the feasi- bility of having a closed recycled food-producing system. Improving existing water quality in Maine is now well underway. However, severe and toxic pollutants such as mercury remain in river bottoms and food chains. These will have continuing detrimental effects. The extent of pollution has been thoroughly documented by the Department of Sea and Shore Fisheries. The pollution patterns of Maine's clam flats is graphically shown in Figure 1-1. This demonstrates the severity of the problem. As expected, the heaviest pollu- tion occurs near the more densely populated areas. A new and major salmon culture industry has recently begun production in Nova Scotia. The promoter of this five million dollar enterprise, when questioned as to reasons for the choice of the Canadian site over a Maine one, said, "We looked at Maine's water quality data and eliminated the State because of its lack of adequate quality water."9 Such sentiment does not augur well now, or in the immediate future, for the large scale development of a viable aquaculture industry. Despite drawbacks, Maine's coastal environmental characteristics appear favorable to many types of potential extensive aquaculture. There is some evi- dence to indicate, also, that the long-range trend in development of aquaculture appears to be in the direction of highly intensive aquaculture, which would de- pend less on the natural environment and more on a controlled pool or embay- ment for fish culture. "An intensive cultivation approach employing modern processing techniques can minimize the dependence on nature and increase the system's reliability, output and profit potential.' Natural environmental require- ments may, therefore, consist essentially of a constant water supply of a good quality at a desired operating temperature. Economic Factors To provide the proper perspective for aquaculture in Maine, this section will deal with economic considerations. The preceding discussion of aquaculture has centered upon some of the basic bio-technical and environmental factors associ- ated with increasing the natural supply of various marine organisms. Discussions of the supply of fish are irrelevant if there is no demand. In few cases, however, has an actual demand for a marine product been adequately demonstrated. Num- erous experts base their cultivation contentions for a species on a presently high market price, such as that of lobster, without considering the possible effects of increased supply on that price. Few businessmen would invest the substantial capital necessary for intensive aquaculture on such few facts or on unsubstan- tiated opinions. More information is needed. General Patterns of Seafood Consumption This section will discuss several aspects of national finfish and shellfish con- sumption.1' The relationship of consumption to income, region, type of work and age will be analyzed. Also discussed will be national consumption patterns for meat and other protein suppliers. These patterns are significant because the consumer must be willing to buy the products of an aquaculture industry if that industry is to succeed. 19 Per capita consumption of fish and shellfish in the United States is growing steadily. Generally this may be attributed to inflation of meat prices, -technologi- cal advances in preserving, packaging and transporting of ocean products, and the introduction of products easily prepared at home, such as fish sticks. The greatest per capita consumption of fish and shellfish occurs in ethnic and religious groups. Negroes consume twice as much per capita as do whites, and Jewish families consume more than twice the amount consumed by Protestant families. These consumption patterns are built upon low priced stable replacement foods such as' whiting and shellfish, and not upon the luxury foods this report considers for aquaculture. Shrimp appear to be the only major exception to this rule, due to the large volumes of fresh shrimp consumed in the Southeast United States. As income increases, consumption of the luxury varieties increases. Groups at the end of the income scale consume almost completely different species, rather than differing amounts of the same species. Consumption peaks at the middle of the socio-economic scale of clerical or sales workers, who con- sume a mixture of staple and luxury ocean products. The largest amount of fish eaten away from home peaks at the high income levels of $15,000 per year. Types of meals affected by income level are shrimp, lobster, crabs and seafood platters, while oysters, haddock, and fish sandwiches appear relatively unaffected. As might be expected, consumption patterns follow the seasonal availability of species. General shellfish consumption patterns differ slightly from the consumption patterns of finfish, primarily because of the effects of tradition and slow techno- logical progress in product distribution. Most shellfish are consumed fresh, which limits the marketing area. Also, as with fresh clams in New England, tra- dition is the major fac'or in the creation of a market. Although a strong demand for clams in New England makes the area consume one-half of the nation's clam production, the recent pollution of many flats has forced the region the import eighty percent of the clams it consumes. Oyster consumption deviates from the pattern of shellfish consumption previ- ously described as increasing with income. Oysters are regional, produced in great numbers in short seasons and not easily marketed as a luxury food. Gen- erally, however, shellfish patterns follow finfish patterns, with clerical and sales workers of the middle income group consuming the greatest amount per capita. Proximity to the specie landing point is the major factor influencing regional consumption of finfish and shellfish. Thus the Eastern and Southern coastal re- gions account for most U.S. consumption. Beyond this faction, areas with fast modes of transportation, such as the North Central area, consume the next highest amount. These patterns again reflect the public preference for fresh seafoods and the problems of processing and transporting popular species. Since World War II, the per capita consumption of protein by Americans has increased with their per capita income. The major part of this protein is sup- plied by meat, poultry and fish products. Fish consumption, unlike that of meat and poultry, has hardly increased at all. Since 1954, yearly per capita meat con- sumption has increased 150 pounds to 161.0, fish 12.5 pounds to 14.0, while 20 Ii -' - I' 4 poultry consumption has skyrocketed from 28.5 pounds to 45.4 pounds. A stable demand is evident for fish, with only population expansion producing a demand for larger fish catches. This is graphically illustrated in Figure 1-2. Because many of these figures are national in scope, it would be erroneous to base industry projections for Maine on national marketing statistics. The imme- diate regional markets for Maine products are New England, the Middle Atlantic states and the Eastern North Central states. Growth figures, unlike consumption figures, are available by region. Respective growth rates for the three regions over the past ten years were 8.6, 8.3 and 9.1 percent. Although these are slightly less than the national growth rate of 11.4 percent, these areas are the most densely populated in the nation. Thus the burgeoning population will increase aggregate demand even if per capita demand remains stable. Market and Industry Analyses As this study progressed, the paucity of public information on the various economies of individual fishing industries and the characteristics of both their actual and potential markets became apparent. As previously noted, few profit making industries have been based on hopes or opinions. Detailed information on current industries and their markets is badly needed to assess the potential of aquaculture in Maine. Some of this necessary information appears in a series of papers published in April of 1970 by the Division of Economic Research of the Bureau of Commercial Fisheries. In addition, the University of Maryland pub- lished a paper on "Demand for Shellfish in the U.S." in 1969. These interdisciplin- ary approaches to solving the many problems of the U.S. fishing industry com- prise the backbone of this section. Lobster: The lobster industry, the best known of Maine fisheries, has experienced de- creased catches in recent years. This may be the result of excessive fishing effort or of slowly declining water temperatures. Also, there have been indications that this decrease is partly related to heavy offshore trawling for the larger, more pro- lific lobsters. While illegal in Maine, this practice can be employed beyond the twelve-mile limit. Research to determine the causal relationship for these declin- ing lobster catches is badly needed. Although the total lobster catch has fallen recently, the price per landed pound has continued to rise. The average 1960 price was $.45/lb., while the average 1970 price was $.95/lb. Despite inflation, this is a significant increase and reflects the luxury nature of the food. It also indicates a growing demand despite shrinking production. This demand has resulted partly from market expansion through the use of air freight, which has given new life to several Maine seafood distributors. However, the costs of air freighting lobsters reinforces their posi- tion as a luxury food item. Consumption of frozen lobster, particularly lobster tails, is increasing, but most Maine lobsters are still marketed fresh. The New England markets absorb almost all lobsters produced in New England because of strong regional eating traditions and the high cost of air freight. An intensive culturing of lobster, there- fore, might compete with, rather than supplement, the present lobster crop. How- 22 170 RED MEAT 160 p1o /\./ PC ULTRY 50 40 30 20 FISH 10 1960 61 62 63 64 65 66 67 68 69 70 FIGURE 1-2 PER CAPITA CONSUMPTION (Pounds/year) Source: Department of Agriculture, U.S. Government Printing Office 23 Washington, D.C. 1970 ever, given the distinct and growing demand for live lobster, and the new and developing market for frozen lobster meat, an increase in lobster catch is not likely to compete with the present crop. It should be possible for the industry to develop the canned and frozen food lobster markets since the United States im- ports nearly as much lobster as is caught in Maine, and at a comparable price. For example, imports of canned lobster meat are valued at over six million dol- lars annually. In 1967, a base year for the Bureau of Commercial Fisheries statistics on con- sumption, national per capita consumption of lobster was .82 lbs. This consump- tion is expected to increase to 1.02 lbs. of lobster meat per person by the year 2000. That figure, when multiplied by projected population estimates for that year, suggests an aggregate demand of twice the 1967 catch.'" The Maine lobster pot industry employs less than four thousand men full time, and an equal number on a part-time basis. The Bureau of Commercial Fisheries estimates the average income of all full-time lobstermen to be under five thousand dollars annually. While higher than the national average, this in- come is a poor return on the fisherman's investments in his boat and gear. This low level, considered in light of the number of part-time lobstermen, may indi- cate that a high percentage of lobstermen are underemployed or not utilized to their fullest working capability. The size and extremely local nature of a lobsterman's investment makes the cycle of under-employment difficult to break. Because his equipment requires a proportionately high investment, constant attention, and is not easily marketed, the lobsterman cannot respond quickly to job opportunities elsewhere. Since aquaculture typically exhibits a fairly low labor to capital ratio, it cannot be as- sumed that intensive lobster culture will significantly overcome the economic problems of the lobstermen by providing alternative employment. Nor can lob- stering equipment, such as boats and gear, be directly transferred into an inten- sive culturing operation. Increased productivity through aquaculture might, therefore, benefit only the processing segment of the industry. Oysters: Due to the cultivation of large beds along the Middle Atlantic coast, the American oyster industry is currently experiencing a resurgence. Prior to this resurgence, landings had fallen by two million pounds in the last twenty years.l3 The value of oyster production in Maine is minimal because the species will not survive through the larval stage in Maine's cold waters. However, since adults thrive in Maine's cold waters, if problems of the larval stages can be mastered, an oyster industry may be possible. It is likely that the oyster larval problem can be overcome. One hatchery facility is presently being constructed adjacent to an electric plant's effluent in Long Island Sound, where the water temperature is raised from 70 to 100 C., as water passes through the hatchery cooling system. Juvenile oysters have already been cultured successfully in the vicinity of a power plant's thermal discharge, and it would appear that the use of this heated water for hatchery purposes would greatly improve the economics of a hatchery operation.a' 24 VF I Holum~~~ Although the United States trails France, Japan and China in per capita consumption of most fish, it leads these nations in the consumption of oysters. This has been true for years, despite the fact that per capita consumption has fallen from .502 lbs in 1950 to .358 lbs in 1968. Surprisingly, New Englanders consume a smaller amount per capita than any other section of the nation. The Middle Atlantic states consume more oysters than other areas but due to the popularity of canned oysters, the demand potential is generally nation-wide. This general demand indicates a lack of traditional or cultural barriers to potential domestic markets. The Bureau of Commercial Fisheries predicts no change in per capita consumption of oysters from 1970 to 2000, but, due to population in- creases, predicts aggregate demand for oysters to increase by one-third by thie year 2000.13 Currently successful oyster industries, such as those on Long Island, New York plant rafts of infant oysters and harvest mature oysters on the bottom with dredges. While no information is available on the economies of these operations, it is apparent from the magnitude of capital investment needed and the highly mechanized plant and harvesting operations that the industry employs fewer people per landed ton than does the lobster pot industry. More extensive re- search into these industries is needed. It should also be noted that the convoluted Maine coastline may not be as well suited to harvesting operations as are the fiat, shallow coastlines of Long Island and the Middle Atlantic States. With the uncertainty over the demand for oysters, and the comparative ad- vantage of the Middle Atlantic states in natural oyster production and oyster culture resources, it seems likely that investments in oyster culture operations in Maine may be less economically efficient than investments in other aquaculture projects. Clams: Maine's production of hard clams (quahogs) has fallen from a peak of 590,000 pounds in 1949 to a yearly average of less than three thousand pounds over the past decade. This discussion will, therefore concentrate on soft shell clams because of their greater impact on the Maine economy. Like the national oyster industry, the Maine soft shell clam industry has experienced a recent re- surgence. In the past ten years the landed catch has risen from a low of 1,450,000 pounds in 1959 to a peak of 5,300,000 pounds in 1970. Yet, this poundage is less than one-half of the landing of either of the peak years of 1948 and 1949.'" New England consumes far more clams per capita than any other region, and accounts for much of the total national demand. National consumption has grown from .267 pounds per capita in 1947 to .341 pounds per capita in 1968, and is ex- pected to increase to .440 pounds per capita by the year 2000.1' Applied to that years' projected population, the increase will double the present aggregate de- mand for clams. The New England demand for clams is an excellent example of the depend- ence placed on a traditional market. Local clam beds, fouled by pollution and 26 ravaged by inefficient harvesting, can no longer meet New England demands. Eighty percent of the clams consumed in New England are imported from the Middle Atlantic states.18 Maine's clam production has been significantly impaired by the bacterial pollution of many excellent clam flats. Seventy-eight percent of the fiats in York County and fifty-seven percent of the flats in Cumberland County are closed, with the remainder on the verge of being closed. Depuration plants are used to purify polluted clams by ultra-violet light treatments, but only on a limited scale. If society can eliminate pollution of rivers and reclaim the clam flats, an import- ant source of revenue will be reopened. Maine clams are usually harvested by hoe, while those in the Middle Atlantic states are dredged. Greater application of dredging operations in Maine would be a cost reducing technological innovation. Such an innovation in harvesting would however result in the reduction in the level of employment, thus increas- ing unemployment problems in the fishery industry even further. In the absence of appropriate programs to facilitate labor mobility and to control harvesting efforts, the long run costs of such a technology improvement might outweigh the short term benefits unless careful plans are made to avoid this possibility. It ap- pears lkely that dredging for clams will most likely be introduced in Maine pol- luted flats first, in conjunction with regional depuration facilities. It has been estimated that hand digging of clams destroys between 50 and 70 percent of the clams left behind. If so, use of dredges in harvesting would in- crease productivity of beds by about fifty percent. In addition, presently unhar- vestable beds might be brought into production as a result of the ability of dredges to harvest clams in water deeper than that where hand harvesters are able to operate. Given the traditionally strong consumption patterns in New England for clams and the generally more favorable flavor of New England clams over those produced in southern areas, it seems likely that any increase in New England clam production over the next 10-15 years will find a ready market in New Eng- land, and any foreseeable significant increases in productivity will probably not cause a reduction in prices. Shrimp: The development of the Maine shrimp industry is a recent development. The industry did not exist five years ago, and now is a relatively stable factor in over- all Maine fisheries with considerable research and marketing activity now pro- ceeding to secure new markets and develop new products. The industry got into full swing about three years ago with landings of, ill 1969, 24'/2 million pounds with a value of $6 million. The Sea and Shore Fisheries is attempting to encourage the European mar- ket that already is familiar with the cold water shrimp, particularly in Scandi- navia. About 50 percent of the Maine harvest has gone to Europe in the past with the percentage expected to top 60 percent this year. 27 Like all marine harvesting, there has been a problem of wide ranging fluctu- ating supply. Thus, the shrimp catch topped 24�/2 million pounds in 1969, the peak year, and dropped to a figure of 17 million pounds in 1970, a figure expected to be indicative of the 1971 crop. Salmonoids: This term covers both trout and salmon, neither of which is currently the basis for an industry in Maine. However, both are prime prospects for intensive aquaculture and the development of support industries. MALPEQUE of Booth- bay, an international fisheries firm, has begun a project to raise great numbers of trout in cages suspended in the effluent of Maine Yankee's Wiscasset nuclear power plant. If this project succeeds, it will help satisfy the hotel market demand which is only partially met by Sea Pool Fisheries Ltd. of Nova Scotia. The de- mand for trout is so great that hotels will accept smaller trout rather than wait for the large, mature trout. While no figures were available on trout consump- tion, it can be inferred that, except for those caught by sportsmen, trout is a lux- ury food. Careful control over intensive trout culturing enterprises is necessary because trout are very susceptible to disease. These intensive enterprises often employ numerous biologists and engineers, but few semi-skilled personnel. Re- gional impact of such enterprises is likely to be small due to these employment patterns. Domestically produced trout compete with frozen imports. In 1965, 4 mil- lion pounds of frozen trout were imported into the United States. In New Eng- land and New York, imported trout usually serves the retail foodstore market, while domestically produced trout from Idaho and Washington State serve the institution-restaurant market. According to the records of the receipts at the New York City Fulton Fish Market, imports exceeded domestically produced trout by a factor of about 5 for each year the records are available. In 1968, New York prices of domestic trout were 30� to 35� higher than imports. Fish brokerages handling trout and salmon at the headquarters of large chain stores were interviewed in a recent study to determine the marketing character- istics of trout and salmon. More than 10 firms in New York and Boston were in- cluded. All informants indicated that a new trout product would be accepted if it were promoted by the producer and the quality were at least equal to the products already available. All expressed interest in buying and selling a locally produced product but they needed relatively large amounts of the product on a weekly basis. One informant said he could use between 10,000 to 13,000 pounds per week while one broker bought between 70 to 80,000 pounds of imported frozen trout per month from one supplier at one time. To break into this market, a supplier must guarantee a minimum supply on a weekly or monthly basis and be able to produce fish at a unit cost at least equivalent to that incurred in the large trout farm complexes in the west. Pro- duction costs of state operated trout hatcheries clearly show that food and labor accounts for 70 to 80 percent of total variable costs of hatchery production (they use about one man working twenty minutes to produce one pound of trout). This implies that 16 men working 40 hours per week for 50 weeks would be employed 28 4 ~ ~ ~ ~ ~ 4, W~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~' ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ' -p ~ ~ ~ ~ 4 '~~~~~~~~~~~~~~~~~~~~~~~'~~~~l in an operation which produces 100,000 lbs. of trout a year. Thus the regional employment impact of such an enterprise would most likely be small. Although the market for this industry may exist, its contribution to local employment is questionable. Also critical is whether or not water supply requirements, in terms of quantity, quality, and temperature would be available in Maine. Salmon, once plentiful in Maine, are among the many victims of our polluted rivers. It may be possible, however, to culture salmon in a manner similar to trout. If so, an excellent market exists for a good product. Demand for salmon has remained constant in the United States for the past twenty years. The supply in that time has diminished by forty percent, probably because of river and estu- arine pollution. In 1947 the nation consumed 391.5 million pounds. In 1967 the nation consumed only 245.7 million pounds. This drop in supply, coupled with the constant per capita demand, has boosted the real price from $.81 per pound in 1947 to $1.09 per pound in 1967, an increase of over forty percent. Demand for salmon is spread equally over all income classes. Negro families consume more than white families while Jewish families top other religious groups. The West Coast leads all other regions in consumption, but demand is also high in other areas. Most salmon is consumed at home and is not fresh, but canned. A recent study by the Bureau of Commercial Fisheries provides a rather opti- mistic demand projection for certain anadromous species, including salmon.'9 This study projected a 180% increase in sport fishing demand for these species by 1980 and 248% increase by the year 2000. It is doubtful that present salmon sources will be able to keep pace with this tremendous increase in demand. If these estimates can be considered accurate, then a rise in price for salmon to $1.90 per pound by the year 2000 is possible. If such a trend is valid, then the potential for aquaculture of salmon is great. The river herring or alewife is also being examined for its commercial po- tential for consumer consumption. The fish now brings about 5 cents a pound as bait and about a cent a pound (delivered to a rendering plant) for use as fish meal. This fish depends on its growth, to a considerable extent, and its develop- ment upon the salmon restoration program. Economics of Aquaculture Enterprises To date no large scale attempts have been made to establish a commercial aquaculture facility along the Maine Coast. However, the soundness of the con- cept is, as we have pointed out earlier, being demonstrated elsewhere in the world. In this section, some general economic considerations that would be necessary to make the industry a success are reviewed. An excellent example of an aquaculture industry model based on the present market is the "million dollar" model discussed by Professors Gates and Matthies- sen of the University of Rhode Island.20 These scientists assert that for an aqua- culture industry to be of regional importance in northern New England it must gross at least one million dollars annually. Attainment of this figure will provide a significant increase in regional income and employment. 30 Three factors influence attainment of the one million dollar figure: cost of production, market volume and price. Cost of production, embodying the econ- omies of scale, is the key factor. Major factors in this cost are minimizing the numbers of indivisible inputs, such as food milling facilities, maximizing the pos- sibilities for joint production of species, such as in joint marketing and advertis- ing, minimizing the maturity time of the species and maximizing the feed con- version efficiency of the species. The remaining factors of market volume and price are considered only as they relate to each other. This type of market analysis depends upon the per capita demand for a product to determine the volume purchased at a certain price. Since the relationship between price and volume sold is not constant, there is an opportunity to make an additional profit. Market volume may be increased by advertising campaigns, improved packaging or marketing a better quality product. The possible effect of such methods is usually determined by market survey techniques and the results of such efforts are described by the change in the coefficients of demand which are a result of altering consumer tastes and preferences. In practical terms, the factors of cost of production, market volume and price may combine in three basic ways to produce the "million dollar" gross de- mand necessary, by Gates, for New England aquaculture. They are: high volume and high price, high volume and low price, and low volume and high price. Gates and Matthiessen consider oysters, salmonoids and soft clams examples of the first combination; flounder, haddock and cod examples of the second; and blood- worms, an example of the third. With these criteria, Gates and Matthiessen selected oysters, lobsters, salmonoids, scallops and the hard clam as the species most likely to guarantee commercial success if cultured. Dr. Robert Dow, Director of Research for the Maine Department of Sea and Shore Fisheries, has considered the economic of potential aquaculture enter- prises in great detail. His findings have been published in numerous articles and indicate a very favorable economic potential for aquaculture. Basically, per acre yields with their associated economic values have been determined. This informa- tion was extrapolated to indicate the potential economic value from additional acreage and yield which could be obtained by management and culture tech- niques. Although the high level of some estimates might be impossible to achieve, since price would be affected by very large increases in supply and some projec- tions were made using the highest yield areas as a base, the overall indication is very favorable. Dr. Dow has stated,21 "There is no valid reason why the production of food and pharmacologicals from the sea cannot become Maine's primary industry, em- ploying more personnel at higher salaries than any other industrial activity." A structural outline of this industry was given and is reproduced here as Table 1-4. An aquaculture enterprise can overcome the horizontal integration which currently restricts profits in the Maine figheries. The Maine fisherman can expect to receive a landed price which is less than half of the final retail price. There is a cost of about 11/ cents per pound to move the catch from the dock to the proces- sor who then adds an amount approximately equivalent to the landed price for processing. The cost of the product is further increased as it moves through the 31 wholesale-retail chain to the final consumer. An aquaculture enterprise can be vertically integrated by growing, harvesting, processing and distributing the final product. This would provide a more efficient and economical operation. The value added by a vertically integrated operation will significantly add to the economy of the Maine coastal area. The economic potential for aquacultural enterprises in Maine exists; it only needs to be exploited. ORGANIZATION AND RENEWABLE MARINE RESOURCE ECONOMY 1. Unprocessed Products: A. Live seafoods: eastern and European oysters, shrimp, soft and hard clams, crabs and lobster, gastropods, sea urchins, slipper shells, and selected finfish. B. Live sport fishing baits: green crabs, mummichogs, mussels, shrimp, clams, gastropods, bloodworms, sandworms, and other annelids. C. Seed stock of selected species for export. II. Processed Foods: A. Canned seafoods: oysters, clams, lobsters, crabs, shrimp, snails, mussels, roe, specialty products. B. Frozen seafoods: same as above plus steaks, fillets, and individual meals. C. Fresh seafoods: all species listed in MAINE LANDINGS, plus gourmet specialties. III. Processed Products other than Foods: A. Food additives: stabilizers, desiccants, clarifiers, fortifiers, and coagu- lants. B. Drugs, antibiotics, laboratory and medical supplies, and pharmacologi- cals. C. Stabilizers and spreaders for paints, hand and face lotions and leather treatments. D. Culture media, industrial additives, biological and botanical specimens. IV. Infrastructure: A. Processing and manufacturing plants. B. Research facilities. C. Academic and training institutions. D. Other service facilities. E. Supportive goods manufacturing. TABLE 1-4 32 Legal Factors Present Maine law is a definite hinderance to the development of large scale aquacultural enterprise. If aquaculture is to achieve significance in Maine, certain revisions must be made in Maine laws. These revisions must embody the two guarantees essential to successful aquacultural enterprises; a guarantee that the investment in aquaculture will be protected and a guarantee that the cultivator may harvest what he has planted. The following sections will be a general discussion of -the lack of laws, the inappropriate or inadequate laws and the legal uncertainties which cloud the future of aquaculture in Maine. The specific statutory language drafted to implement necessary changes in Maine law may be found in the appendix. Protection for Aquaculture One of the glaring deficiencies in Maine's legal structure is the absence of legislative guidance or administrative machinery to arbitrate among the various uses and users of the Maine coast. This institutional vacuum will be discussed further under the section entitled Institutional Constraints. The absence of any mechanism or administrative machinery to regulate competing uses in the marine environment emphasizes the fact that protection of the investment in aquaculture involves a compatible environment and legal safeguards for the site as well as legal considerations pertaining strictly to fish culture. Direct compensation or recourse to a cultivator for destruction of his endeavor is limited to restitution for damage from an oil spill, as provided by the Coastal Conveyance of Petroleum Act, and civil liability for harm resulting from trespassing on an oyster cultivation area or the unauthorized taking of shellfish from a clam cultivation area. In some instances there is criminal liability for molesting the project or directly discharging a deleterious substance on the cultivation area. /See 12 M.R.S.A. 4253, 12 M. R. S. A. 4351, 38 M. R. S. A. 551 (1970 Supp.)/ The ideal location for an aquaculture enterprise would be an isolated area protected by zoning laws from the encroachment and deleterious effects of domestic or industrial activity. Similar restrictions in the utilization of the adjacent water areas for commercial or recreational crafts and curtailment of the public right of fishery in the area would also be necessary. The enterprise would be allowed to dam tidal creeks and estuaries and to divert tidal waters. The cultivation site should be assured of a continuous supply of fresh water and unpolluted sea water. Waste generated by the enterprise that could not be recycled, would be conveniently disposed of in the sea. The extensive facilities at Sea Pool Fisheries Ltd. in Nova Scotia approach this ideally. This corporation has the distinct advantage of owning large acreages of uplands and tidal flats; it selected a non-populated isolated spot for its enterprise and the Provincial Government has assured that the environment would remain that way by strict zoning ordinances and restrictions on navigation and fishing in the vicinity. Few Maine communities are so sparsely settled that they are able to give such environmental protection and neither the state nor any municipality can provide similar legal protection under the present legal framework or any political feasible future framework. 33 Diversion of Tidal and Fresh Waters Provision should be made to encourage aquaculture by allowing diversion of tidal waters which could provide nutrients in a closed system and allow the enclosed area to benefit from the cleansing action of the tide. Such a diversion would be possible under the suggested legislation found in the appendix. On the other hand, aquaculture in such a closed system may, of itself, con- stitute a source of pollution. The legal framework must provide not only for protection for but also from aquaculture enterprises. The degree of environmental degredation in marine waters from both industrial and domestic sewage is a detriment to aquaculture in an extensive open aquaculture system. A refinement of water classification standards is necessary because of the extreme susceptibility of shellfish to certain toxic elements and the characteristic ability of shellfish to concentrate substances not ordinarily harmful for human consumption to lethel levels. Merely establishing proper criteria, however, will be ineffective until present standards are met. Another addition to Maine law which might increase the possibility of more extensive aquaculture would be statory authority to dam or enclose tidal creeks or inlets subject to proper restraints as to interference with navigation. This provision is also provided for in the suggested enabling legislation. Also deficient in Maine law is the legal inability of the State to control and regulate the flow of water in streams that flow into tidal estuaries. Often the depth of the water and the salinity are important factors in the growing process of either artificially or naturally occurring marine species. Legal resolution of this inadequacy may involve repurchase or taking of flowage rights that have previously been given or sold by the State. Cultivation in Polluted Areas State health regulations prohibit harvesting of shellfish from polluted areas. Any area which fails to meet minimum standards is closed by the Department of Sea and Shore Fisheries. One exception has been made to this strict rule. Shellfish may be taken from mildly polluted areas, under Department of Sea and Shore Fisheries Supervision, and sold commercially provided that they come up to standard health requirements after processing through a depuration plant. /12 M. LR. S. A. 3452, 12 M. R. S. A. 3503/ The upgrading of Maine's coas:al waters is a Legislative perogative. The conformity to classification is under the surveillance of the Environmental Im- provement Commission. Provisions should be made to allow the Department of Sea and Shore Fisheries, or other persons or agencies working under Depart- mental authorization and scrutiny, to use presently polluted areas for research and the experimental cultivation of shellfish. Similarly, it should be made legal to recycle domestic and industrial pollutants as nutrients for marine species that can thrive on such enrichment of the food chain without becoming unfit for consumption in the process. Aquaculture has even been mentioned as a means of minimizing pollution by such recycling. The advantages of allowing cultivation in polluted areas is that such culti- vation would not compete with subsistence fishing or commercial harvesting 34 because the flats and areas so taken are already closed to exploitation. A draft of a law which would authorize cultivation in polluted waters may be found in the appendix. Research Statutes The suggestion for utilization of polluted areas in the last section highlights the inadequacy of statutory authorization for research activity needed to en- courage the cultivation of fishery resources. Even the Department of Sea and Shore Fisheries is handicapped by provisions that a riparian owner's consent is necessary for using tidal fiats for research. In the absence of eminent domain, the Department's research plans may be thwarted. More startling is the paucity of provisions for activity conducted by other state agencies, academic institu- tions, or for private research. The most glaring deficiencies in research pro- visions are the meager areas that may be used and the relatively short time that an investigator may be assured of retaining the experimental site. Not only must provisions for research for both the Department of Sea and Shore Fisheries and other private or public entities be liberalized but there must be statutory authorization to proceed from the table-model pilot project to cultivation on a commercial scale. Research must provide the data necessary to gain political acceptability for curtailing the public right of fishing by docu- menting projections of the overall profitability of aquaculture and its multiplier effects on the economy of a community. Present research provisions may be found in 12 M. R. S. A. 3701-3705. Sug- gestions for revision of these sections may be found in the appendix. Inflexible Laws By Maine law, the Commissioner of Sea and Shore Fisheries is directed to enforce the fishery laws as enacted. Statutory exceptions to the strict adherence to these laws have been provided for Departmental personnel and certain federal counterparts but do not apply to other state agencies, educational institutions, or private individuals or corporations. Whatever justification there may be for such strict adherence for commercial fishing in general, the rationale seems very thin when applied to research activity, especially to private or semi-private institutions whose sole concern is enhancing the species or increasing the total- of knowledge about such species. It is unfortunate that there are no provisions for the use of modern equipment and techniques or that, in some cases, their use is forbidden. The same frustration felt by persons engaged in research on marine species is undoubtedly shared by persons involved in the commercial aspects of fisheries who are precluded from economic management of fishery resources. Aquaculture has sometimes been defined as farming rather than hunting but in the case of sedentary shellfish such as clams, quahogs, and mussels, the distinction is largely a matter of semantics. Projection of tremendous increases in the yield and in the economic return from these mollusks have been made by Departmental research personnel. These projections have been predicated on scientific management and mechanical harvesting facilitated by granting of exclusive leases for clam cultivation. The present law, with its insistence on inefficiency and waste in harvesting clams by the clam hoe, is based on historic socio-economic conditions. 35 As in the past, pressure may be brought to bear on the Legislature to retain such crippling provisions in the law. However, the State should at least experiment with modern methods to determine possible increases in productivity. A special research license would overcome a presently formidable obstacle to aquaculture. The research license could cover both scientific research and research on a scale that would make it possible to appraise the results of scientific management. It would not be unreasonable for the Commissioner of Sea and Shore Fisheries to attach whatever conditions and regulations that he thought appropriate in the issuance of such a license. It is recommended that the Com- missioner have this tool to advance the economic and biological potential of Maine's marine resources. A draft of provisions for such a license has been included in the appendix. The Leasing of Extensive Areas One of the deterrents to commercial aquaculture in Maine is the inability of a cultivator to obtain sufficient acreage with exclusive rights to the cultivated species to make the project economically feasible. The Commissioner of Sea and Shore Fisheries may lease only one acre on the fiats to a person interested in scientific research or the commercial develop- ment of fish or shellfish. Below low water mark the same modest acreage is allowed for fish or shellfish with only slightly more ample areas allowed for seaweed cultivation and harvesting. Legislation should be enacted to authorize retention of larger areas for aquaculture. A combination of a limitation on total acreage that any one person or corporation could lease for cultivation coupled with provisions for competitive bids on prime areas would minimize possibility of abuse from such liberalized laws. [A suggested amendment to the present law is included in the appendix. Present law may be found in 12 M. R. S. A. 4304, 12 M. R. S. A. 3703.] Long Term Leases While total amounts of subaqueous land, water area, or flats vary from species to species, on almost universal requirement for any aquaculture endeavor is a long term renewable lease which gives the cultivator a property interest which he may assign, convey, or devise. In some states submerged land has been sold, but the better policy would be the long term lease. The renewable twenty year leases granted by the Maine Mining Bureau, a competitor in the marine environment, stand in sharp contrast to the six year maximum term for which the Department of Sea and Shore Fisheries is author- ized to execute a lease. Municipal shellfish authorities may grant leases up to ten years for cultivation on fiats and tidal creeks. There is no guaranteed right of renewal for either of these types of leases. [Present law may be found in 12 M. R. S. A. 3703, 12 M. R. S. A. 4304. Suggested amendments to present law are included in the appendix.] 36 Free Floating Devices Cultivation of marine species takes place not only in closed systems, on flats, and on subaqueous land, but also in free floating equipment. Maine has not statutory provision for the authorization of oyster rafts, cultivation cages, or other floating devices. Although they may be of any size, 20' x 20' x 5' would correspond to approximate dimensions that have been contemplated by one cultivator for culture in Maine. These devices would be anchored in navigable waters and would require sanction by the United States Army Corps of Engineers land adherence to any applicable Coast Guard Regulations. The federal interest would be primarily directed towards the needs of navigation while the state interest would be more encompassing and could be exercised better by licensing and supervising the utilization of such equipment. An authorizing statute has been suggested in the appendix. Riparian Rights Although the riparian owner has been rightly accorded certain preferences and perogative, his preferential treatment should be limited to his right to free coming and going and the opportunity to use the marine area immediately adjacent to his property. There seems very little justification for his ability to tie up the area if he is not going to make use of it himself. The inordinately large vo'ce of the riparian owner is contained in the oyster cultivation statute, 12 M. R. S. A. 4253, the research statutes 12 M. R. S. A. 3701-3, and the clam cultivation statute 12 M. B. S. A. 4304. Suggested amendments to these laws have been included in the appendix. The Residency Requirement Although a residency requirement, either of the state or the municipality, has not been written into cultivation leases for research activity granted by the Department of Sea and Shore Fisheries, the prerequisite is still retained in cultivation leases for oysters and clams. This requirement does not seem in the best interest of the State if the State wishes to encourage aquaculture investment and development. The availability of capital and inclination probably has little correlation with residency in a suitable locality or the State. Preference could be given to residents, the Department or the Municipality, who could decline to grant a lease to a non-resident if it seemed in the best interest of the granting authority. Any prohibition against non-residents seems unwarranted. Amend- ments to present law to remove this requirement have been made in the appendix. Jointly Allocated Areas Despite the fact that appropriate areas for aquaculture on tidal flats do not always correspond to political boundaries, there is no law which authorizes more than one municipality to join together to issue cultivation leases. Precedent for such an arrangement may be found in the authorization for municipalities to entcr into an agreement for joint allocation might be possible under present law by a strained interpretation of that provision, a clear cut authorization would be more desirable. Recommended amendments to present law have been made in the appendix. 37 Rights in the Intertidal Zone A more extensive cultivation of flats in the intertidal zone presents a complex legal, social and political problem. The legislature has delegated to municipalities the authority to regulate shellfish harvesting and cultivation on municipal flats if they care to exercise the authority. The municipalities may lease up to one fourth of the total area of flats in a municipality for exclusive cultivation, but this provision has not been extensively used. Local fishermen's reluctance to see flats taken for exclusive cultivation is understandable. The large areas of clam flats closed because of pollution compound the problem and increase the intensity of potential conflict between the cultivators and the diggers. Although the legislation enabling a municipality or the state to grant exclusive rights on tidal flats has been judicially sanctioned, a real question remains as to whether these flats can be tied up by long term leases. The Maine Supreme Judicial Court must further clarify the riparian versus public rights in the intertidal zone before any large scale aquaculture will take place in this area. If the Court should rule more heavily in favor of private rights, obtaining a riparian's permission might have to be considered a necessary expense of any aquaculture investment. The ruling in the recent litigation in which the State Wetlands Control Board's denial of a petition to fill in tidal lands was not upheld by the Maine Supreme Judicial Court makes this problem a very appropriate and timely one for aquaculturists. Persons who obtain a lease under present law may question the validity of a municipal or state grant against the wishes of a riparian owner. Because of legal uncertainty in the intricate interrelationship between private property, riparian rights, public rights, and the livelihood of local inhabitants, it is recommended that responsibility for cultivation of clams, quahogs, and mussels be left with municipalilies. Consideration should be given to allowing the state to grant cultivation leases if the municipaltiy was not exercising its option to regulate these fisheries. A clarification of property rights in the intertidal zone is imperative for any extensive investment in this area. Until the Maine Supreme Judicial Court rules on this important question, state or munici- pal jurisdiction is unimportant. A possible solution for the reconciliation of scientific management of these flats and the historical use of these areas by clam diggers might be authorization for the formation of fishermen co-operatives composed only of resident licensed diggers. Land suitable for aquaculture could be allocated to these associations which in turn could conduct cultivation on the land as an association, could sub-let the land to one of its members, or could sub-let the flats to the State or even an individual or corporation who was not a resident of the municipality. Although no more than one fourth of the tidal area of flats in a municipality may now be leased, there should be no limitation on the amount of land that could be leased by the municipality to such an association except that such land was certified as suitable for aquaculture by the Department of Sea and Shore Fish- eries or a coastal management authority. Such an arrangement would retain local control of land usage and give persons (who might be denied subsistence because of the granting of exclusive franchises) a voice in the granting process and possible tangible economic benefits from the cultivation effort. This type of association is referred to in the planning implications sections. 38 Social and Cultural Constraints A formidable obstacle inhibiting the development of an aquaculture industry in' Maine is the individualism of Maine's coastal inhabitants. Although the independent manner of these taciturn citizens enthralls tourists, it has also dislodged many attempts to gain a foothold for even minimal aquaculture de- velopment on the Maine coast. Efforts to introduce aquaculture have often failed because aquaculture requires the cooperation of large numbers of people. State and local governments must solve legal problems as well as problems of attitude, and local men must either labor for "outside" organizers or attempt to work together in an equally uncomfortable hierarchy of responsibility. Although ignored by public relations men, the individual's preference for self-reliance is usually tightly interwoven with a keen distrust of organization. The changes in laws, traditions and per- sonal hierarchies requisite for aquaculture do not come easily in this environment. Many coastal organization failures can be attributed to this problem, and each failure increases the individual's conviction that he is wise to labor alone. The Maine native also considers the ocean to be his, not the property of all Maine people. Like his ancestors, he braves the sea's worst weather to make his living. He feels that his work, as well as his ancestors, has made him a trustee of the sea, with the right to determine its use. This attitude is incompatible with the concept that the sea is a public resource to be used for the public good. A major reason for developing aquaculture in Maine is to provide a more stable economy and employment for coastal residents without disrupting their lives. Many who glorify the Maine resident in summer never see him in winter, never visit his homes or schools and do not fully understand the strain of raising a family on the offerings of the unpredictable sea. In many cases, the Maine people could change their own laws to help themselves immediately. The scientific evidence to provide the direction is already available. It is clear that the tradition of limiting the use of the sea to individuals and limited pressure groups hurts the people of Maine as a whole. The attitudes and problems of the coastal fisherman are well understood by Ivan W. Fly, President of Seafoods U.S.A. of Damariscotta. His firm exports lobster, shrimp and bloodworms to all parts of the United States and Europe and depends entirely upon individual fishermen for products. Mr. Fly estimates that he could have marketed at least fifty percent more of his products in 1970 if that amount had been available. Mr. Fly: "We cannot indefinitely continue to operate in the 1970's as we did in the 1930's. Petty jealousies and a lack of willingness to help anyone but yourself is what is killing the infant marine industries of Maine." Water pollution is another area where the public attitude inhibits the development of aquaculture. Until recently the public has been uninformed and unconcerned about the pollution of rivers, bays and estuaries by industries and municipalities. Recent legislation, particularly on the Federal level, recognized the problem and set deadlines for cleanup. However, due to shortage of Federal matching funds and weak enforcement policies, the timetable may not be met. Although some exceptions exist, aquaculture is not feasible in the large 39 coastal areas of Maine which are polluted by land based industries and popula- tion centers. Each year more valuable acres of clam flats in Penobscot Bay are closed because of pollution. The heated debate over Machiasport made the public so sensitive to oil pollution that a spill of fifty gallons in Casco Bay makes news, but little is written of the six million gallons of raw sewage dumped into that bay daily. The effect of this sewage on marine life is tragic. And the problem is growing. The dilemma is that aquaculture is only a potential industry, while the polluters are actually providing a living for many Maine people. The practical wisdom in closing down these polluters for the sake of a clean environment for a long-range aquaculture industry would be severely questioned by State and local officials. If tough enforcement of present statutes is demanded by the pub- lic, and if industry can solve its technological cleanup problems, a long-range solution may be possible. Aquacultural research is currently being conducted in bacterially and thermally polluted waters. Even now, clams raised in bacterially, polluted flats are marketed after treatment in water sterilized by ultra-violet light. MInaine Yankee, operators of the Wiscasset nuclear power plant, have underwritten numerous attempts to raise trout, lobsters, and bloodworms in the thermal ef- fluent of the plant. However, even if this research is successful, the public may not be particularly eager to buy foods raised in an environment actually polluted by bacteria or potentially polluted by radioactivity. While there is no scientific evidence of significant radioacivity around nuclear plants, careful control and surveillance of power plant effluents to reduce the dangers to life and environ- ment will be essential and is no doubt technically possible once mutual relation- ships and benefits are more clearly understood by aquaculturalists and power suppliers. The ecology or whole earth movement, once considered a fad is an influencing factor in the commercial success of a product, as officials of the tuna and swordfish industry have noted. Cultural impediments may exist for the types of food produced through aquaculture. The initial problem, as discussed in the economic section of this report, is that unlike Japan, China and parts of Europe (land shortage areas), ours is a meat eating nat'on. Meat, though expensive, is easily available and our transition to a greater dependence on fish foods may be lengthy. PLANNING IMPLICATIONS The essence of planning in any realm is anticipation and accommodation. Planning for aquaculture in Maine, therefore, requires some technique for anticipating its impact and for accommodating its use within a framework of other competing resource demands. Typically, planning projections for future use are based upon an extension of past trends. This is difficult for aquaculture because of its novelty to Maine, its lack of clear identifiable technology else- where, and its threat to local ingrained fishing methods. Planning projections should be derived not only from past trends but also in accord with future objectives. Due to the relative newness of aquaculture in 40 Real,~~~~~~~~~~~ Maine, opportunity exists for satisfying such future objectives. A major goal toward which public programs for the development and use of marine resources can be appropriately directed is to maximize the present value of expected net social benefits to be derived from Maine's marine environment. This goal can provide the direction for planning decisions in the field of aquaculture. The inter- relationships between aquaculture and other coastal uses have a significant im- pact on the achievement of the above goal. The planning implications associated with these interrelationships are discussed in the next section. A more complete discussion of the benefits which can be derived from the total interaction of all the component industries is given in the section "Proposed Industrial Recycling - Multiple Use System." Multiple Use Concept Providing for the accommodation of aquaculture will require a careful consideration of the multiple use possibilities of aquaculture, or, simply, a look at the ability of aquaculture to get along with other existing and potential coastal uses. There have been many multiple use possibilities advanced for aquaculture. One method is using thermal effluents or other types of pollutants to en- hance growth of various species. Electric power-producing industries are anxious to prove the compatibility of thermal effluents with fishery resources, thereby improving their environmental balance sheets. A large number of environmental studies, funded through Maine Yankee Atomic Power Company, is being con- ducted by various research organizations. The Ira C. Darling Center of the Uni- versity of Maine is collecting basic information on the ecology of the power plant site area, while the Department of Sea and Shore Fisheries is evaluating the po- tential of heated sea water as a medium for the aquaculture of eastern and European oysters, quahogs, bloodworms and edible mussels. Some of the major problems faced with the use of thermal effluents to en- hance growth of marine species are: 1. Often cyclical nature of temperature of thermal effluents and the possi- bility of complete shutdown as a result of malfunction or performance of normal repairs. 2. Although heated water is a definite stimulus to growth during winter months, particularly in Maine's cold water environment, heated water can be lethal to many fish species during other times of the year. 3. Various waste products are occasionally discharged into the effluent, in- cluding acid waste, domestic waste, low level radio-active waste, and chlorine used to minimize fouling in heat exchange coils. Most of these drawbacks to the use of thermal effluents for the increased stimulation of specie growth can be alleviated through the promotion of a high degree of cooperation between the two industries. Arrangements can be devised to divert excess thermal waters and other waste products, possibly through sep- arate piping systems. Cooperative planning between aquaculture enterprises and power plant operations is needed to minimize the effect of plant shutdowns. Dual reactor plants are designed to run continuously with either one or both re- 42 actors operating, and are particularly well suited to aquaculture. Due to the possibility of a power plant shutdown, native species have a distinct advantage since they will survive in the cold water environment. Another example of a multiple use possibility is an aquaculture operation which will utilize certain types of pollution. Maine's Department of Sea and Shore Fisheries has for many years used polluted flats and tidal areas for aqua- cultural research purposes. Studies on the utilization of wastes and by-products for the production of fish indicate that domestic sewage can serve as nutrient sources for the growth of algae which in turn can be used as a source of food for culturable species. The utilization of sewage in a combined algae and fish culture system produces a useful product while at the same time substantially reducing the polluting effects of waters. The multiple use concept provides some distinct opportunities for aquacul- ture enterprises in Maine. This concept is explored further in the final section of this report. Public Corporation A recently advocated economic incentive for aquaculture is the concept of a public corporation. Many potential aquaculture operations are at present only marginal as an economically viable enterprise. Yet such activities might be profitable individually to fishermen who are now making a marginal living from the sea. Many of these fishermen do not have the large amounts of capital re- quired to underwrite even an initial investment in such an undertaking. Some form of a public corporation or cooperative for such a venture would assure that while the public at large might be deprived of the common right of fishing by the leasing of an exclusive cultivation area, those most dependent on fishing would be benefitted. This would make particular sense for clam cultivation in the intertidal zone - an area historically available for subsistence fishing. Another possibility for the utilization of a public corporation would be to raise lobsters, a specie uniquely qualified to be cultured in Maine. The extent of control necessary to supervise the growing, harvesting, marketing and selling of a greatly increased yield might more properly fall under a public rather than a private corporation. The possibility of public investment in such an undertaking would allow those who have traditionally pulled lobster traps an opportunity to benefit from a venture that otherwise would basically be in competition with their efforts. Care must be taken in such a venture, however, that strict scientific management and fiscal accounting are not victims of a non-competitive bureauc- racy. There are many other possibilities for fishing cooperatives or public corpora- tions and each situation would require different legal implementation. A bill which will provide the basic mechanisms for facilitating the leasing of large areas for commercial aquaculture has been submitted to the legislature. We recommend this bill be adopted and positive steps be taken to benefit from the provisions that will be established. This can be implemented by estab- lishing a public institution to facilitate the initiation and operation of multiple- use aquaculture facilities. Such an institution would be available in the proposed Maine Land Development Corporation. 43 Specie Forecast It is not the purpose of this report to predict which, if any, of Maine's fish- eries will line the pockets of our coastal citizens. There are no dream or miracle species upon which aquaculture efforts should concentrate. However, due to archaic laws and to the inadequate funding of state promotional, research and management efforts, Maine's fisheries are at a low ebb. A determined program of governmental stimulation of the fishing industry, like that begun in Canada, would result in a healthy expansion of virtually all segments of the industry. Government leadership in developing a viable aquaculture industry can be one form of support. The following provides an evaluation of the most promising species for aquaculture in Maine. Species identified as having a high probability for aquaculture in northern New England were screened and ranked in accordance with several factors thought to influence the introduction of aquaculture enterprises in Maine. It is recognized that the evaluation method used is somewhat subjective and based on general considerations. Given more specific, definitive information, other choices might have been made, However, in viewing the prospects for aquaculture in Maine, it is felt that the selections made below offer the best possibilities at this time. Success with those species evaluated as highest, i.e., clams, lobsters, salmon- olds, would provide a broad spectrum capability and a sound basis for adding other desirable species at a later stage. The general factors used to evaluate each specie are weighed to reflect their relative importance. The specie evaluation table along with the weights used for the evaluation factors are shown in Table 1-5. The time has come to benefit from past research. We recommend the initia- tion of a publicly sponsored demonstration project to investigate large-scale lob- ster culture possibilities in Maine due to the lobster's high market price, high demand, and strong consumer recognition. In addition, efforts should be initiated to investigate salmonoids, clams, and sea worms. Once a successful aquaculture industry is operating, with the species mentioned, other attempts to initiate pro- grams with other species will be greatly facilitated. What is needed is a simple, direct commitment to place aquaculture high on Maine's list of industrial de- velopment priorities. With this commitment, the Maine Coastal Plan can begin to devise a rational management scheme for the coast that will form the basis for allocation of areas for aquaculture purposes. 44 GENERALIZED SPECIES EVALUATION FOR AQUACULTURE IN MAINE Price Range Market Size Ease of Culture Growth Rate Environmental Institutional Resultant (refers to its high (refers to its (refers to its (refers to specie Adaptability Compatability or low range or its geographic range, hardiness, respon- maturation time to (refers to specie's (refers to specie's flexibility with volume and pack- siveness to manipu- market size as well suitability to degree of in terfer- varying supply) age acceptability) lation as well as as its conversion Maine's cold water ence with other current knowledge- efficiency-food to environment) uses & other ability as to culture flesh ratio) interests) techniques ) Marine Worms 6 3 0 3 3 1 16 Crabs 4 5 2 0 1 3 15 Lobster 6 5 5 1 3 1 19 Shrimp 5 4 2 1 3 1 16 Mussels 2 1 4 3 3 1 14 Clams 5 3 4 3 3 0 18 Scallops 5 3 3 1 1 3 16 Oysters 4 3 4 1 1 3 16 Salmonoids 5 4 3 2 3 0 17 Priority Weighting Assigned To Evaluative Factors Favorable Limited Unfavorable Price Range 6 4 2 Market Size 5 3 1 Ease of Culture 4 2 0 Growth Rate 3 1 0 Environmental Adapt. 3 1 0 Institutional Compatability 3 1 0 TABLE 1-5 TABLE 1-5 STATE-56 OSH 1105 FOOTNOTES - AQUACULTURE COMPONENT 1 T. A. Gaucher, "Potential for Aquaculture," TRIGOM Conference on Aquaculture in Northern New England, Oct. 21-23, 1970. 2 State of Maine, Dept. of Sea and Shore Fisheries - 26th Biennial Report for Period July 1, 1968 to June 30, 1970, State House, Augusta, Maine. 3 Maine Landings, Annual Summary, State of Maine, Dept. of Sea and Shore Fisheries and De- partment of Fish & Wildlife Service, 1955-1970. 4 Interview - Ivan W. Fly, January 1971. 5 Robert L. Dow, Renewable Marine Resource Industry Potential in Maine, State of Maine, Dept. of Sea & Shore Fisheries, November 1970. 6 Gary K. Gunstrom, "Sea Farming in the Canadian Maritimes," Sea Pool Fisheries, Ltd., Lake Charlotte, Nova Scotia, May 1971. 7 Op. Cit., T. A. Gaucher. 8 J. R. Brett, "The Energy Cost of Living," Marine Aquaculture, Oregon State University Press, Corvallis, Oregon, 1970, p. 51. 9 P. E. Cavanaugh, President of Sea Pool Fisheries, speaking at TRIGOM Conference on Aqua- culture, Durham, N. H., Oct. 21-23, 1970. 1o T. A. Gaucher, "Technological Aspects of Aquaculture," TRIGOM Conference Background Material, Oct. 21-23, 1970, p. 15. 11 M. Miller, D. Nash, "Regional and Other Related Aspects of Shellfish Consumption, Paper #74," Bureau of Commercial Fisheries, Sept. 1970. 12 "Northern Lobsters Basic Economic Indicators," Bureau of Commercial Fisheries, Paper No. 53, April 1970, p. 15. 13 Op. Cit., Maine Landings. 14 Op. Cit., T. A. Gaucher, "Potential for Aquaculture." 15 "Oysters: Basic Economic Indicators," Bureau of Commercial Fisheries, Paper No. 56, May 1970, p. 18. 16 Op. Cit., Maine Landings. 17 Op. Cit., "Oysters: Basic Economic Indicators." 18 Morton M. Miller, Darrel A. Nash, "Regional and Other Related Aspects of Shellfish Con- sumption, Bureau of Commercial Fisheries, Paper No. 24, 1970, p. 12. 19 "Salmon: Basic Economic Indicators," Bureau of Commercial Fisheries, May 1970, p. 26. 20 J. M. Gates, G. C. Matthiessen, "Determinants of Success in Aquaculture," TRIGOM Coifer- ence on Aquaculture in Northern New England, Oct. 21-23, 1970. 21 Op. Cit., Robert L. Dow. 22 T. A. Gaucher, "Thermal Enrichment and Marine Aquaculture," Marine Aquaculture, Oregon State University Press, Corvallis, Oregon, 1970. 46 I" - -U U ii iii iui liii I 'A 0 0 '0 ~~~~MI, p.-~ ~~~~~Hl ___l I ~~i~~I IPip R~ 1'ill I1 1111111 I, law I II I'le i I. mu E II 1 i I ~ lIII &hir __ _ 11L 11 11aI INTRODUCTION TO THE PETROLEUM STUDY Petroleum and the Coastal Zone The goal of the Maine Coastal Plan has been stated as follows: "To develop a comprehensive plan providing for compatible and multiple uses of the coastal zone, optimizing those intrinsic and real values assuring the greatest long term social and economic benefits for the people of the State of Maine." One challenge facing the plan is to develop workable guidelines with regard to the expansion of the petroleum industry as it relates to the Maine coast. The controversy surrounding the proposed oil refining complex at Machias- port has continued for nearly three years; the proposed oil storage depot in Casco Bay, seemingly ended by governmental order, is still shrouded by a legal ques- tion; geophysical surveys of the east coast ocean floor (a prelude to off-shore oil and gas exploration) have been financed by a number of major oil companies, and the constitutionality of the recent legislation pertaining to the coastal conveyance of petroleum is being contested in the Maine courts. More recently, an oil desul- furization refinery as part of a marine-industrial park at Sears Island has been proposed. All of these actions have focused widespread attention on those facets of the petroleum industry operating within the coastal zone. This investigation of the oil industry centers its attention on the factors that most directly affect the coastal zone. For example, the impact of petroleum trade on harbor activity, the ability of existing harbor facilities to meet future demands of the industry, and the ability of the coastal waters to meet the navigational requirements of future oil tanker transportation. In addition, an economic analysis of the industry in the state has been conducted to include the situation at present and estimates of economic changes over the long term. The basis for workable guidelines for the coastal plan must be accurate- ob- jective data coupled with the best available estimates of future trends. It is the overall goal of the Petroleum Study of this public investment plan to provide this information. Before examining the status of the petroleum industry in the State, a few general facts about the coastal zone should be reviewed. The number of miles of Maine coastline is the greatest of any state north of Florida. Portland Harbor handles more tonnage than any New England port and is the second largest crude oil port in the nation. In recent years about 98% of the tonnage handled at Port- land has consisted of some form of petroleum. The harbor accommodates tankers of approximately 110,000 dwt. with a maximum draft of 45 feet. (The much talked about super tanker fleet of' the future is focusing on 200,000 dwt. vessels, al- though Gulf Oil Corporation has 326,000' dwt. tankers in operation.) Further up the coast, Searsport, capable of handling ocean going vessels with a draft restric- tion of 38 feet, is very active in petroleum trade. Approximately 85% of the ton- nage handled at Searsport consists of petroleum products. Close to Searsport, on the Penobscot River, is Bucksport. Bucksport and river traffic to Bangor are heavy in the trade of petroleum, with over 90% of the volume handled attributable to oil. It is obvious, after reviewing these facts, that the actions and plans of the petroleum industry are a primary input to the Maine Coastal Plan. The integra- tion of the social and economic aims of both the people of Maine and private 51 business must be accomplished. To allow either the citizenry or industry unfair advantage is creating an unhealthy situation. Each is dependent on the other and the healthy advancement of one is the healthy advancement of the other. SUMMARY OF EXISTING SITUATION IN THE MAINE PETROLEUM INDUSTRY An Overview of the Industry The purpose of this initial section of the study is twofold: (1) to provide an overview of the petroleum industry with respect to its structure, its functions, and its importance as a supplier of raw energy; and (2) to establish a base level of in- formation from which projections of economic activity can be made. The petroleum industry in the United States is comprised of a number of large integrated international corporations. For 1969, For-tune's listing of the 500 largest industrial corporations by sales noted seven oil companies in the top twenty with combined sales of $48 billion. The industry is highly capitalized, leading all industries in assets per employee and sales per employee while rank- ing near the bottom in terms of sales per dollar of invested capital. It is im- portant to identify the capital nature of the industry.' Turning to the State of Maine, the value of petroleum products crossing Maine boundaries each year is estimated to be $541,000,000,.2 The product mix of petroleum entering Maine and the structure of the industry are unique. The industry can actually be divided into two distinct segments, one concerned with transporting crude petroleum, the other with marketing refined products. Ex- planation of these two functions follows: 1. Transporting crude petroleum - International tankers off-load crude oil at Portland Harbor; a major pipeline system then carries the oil to Canadian re- fineries near Montreal. This function accounts for approximately 80% by vol- ume of all the petroleum products crossing Maine boundaries. Crude petroleum is oil in its natural form as it flows from the well head. The crude petroleum arriving at Portland Harbor originates from Venezuela. All the crude oil is handled by one firm, the Portland Pipe Line Corporation, at Portland Harbor. We will discuss the transporting of crude oil in a later section. 2. Marketing refined petroleum products - Approximately 90-95% of the total energy requirements of the people of Maine are supplied either directly or indirectly by petroleum products which originate from sources outside Maine. The receipt, storage, distribution and sale of refined products are carried out by an extensive marketing network comprised of major oil companies and numerous independent dealers. With regard to refined products, it is necessary to explain the major items in this category. The following list contains the products that account for al- 52 most 100% of the market in refined products, both in terms of physical volume and level of sales. This study will make reference to these product categories rather than selecting particular products, of which there are many, some known, by more than one name. TABLE 2-1 MAJOR REFINED PETROLEUM PRODUCTS Product Category Principal Use and Related Notes * Gasoline Internal combustion engines - includes all octaine ratings - Retail sales carry a $0.08 State tax and a $0.04 Federal tax per gallon. * jet Fuel Turbojet Aircraft Engines * Kerosene Heating - Maine's per capita consump- tion of kerosene for heating is the high- est in New England. * Distillate -type /Heating Oil Heating - Households and small estab- lishmnents, close to 90% of sales are No. 2 oil. *0 Distillate type /Fuel Oil Internal combustion engines (diesel type), several grades of diesel fuels for specific uses. * Residual type /Heating Oil Heating, large establishments, residuals must be heated for handling. * Residual type /Fuel Oil Utility companies, for generation of elec- trical energy, also large vessels. * LPG Cooking and beating - Liquid petro- leum gas, also known as bottled gas. ~~~~~~I > II~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I I~~~~~~~~~~~~~~~~~~��r-E Estimate of Dollar Value of Petroleum Products Any attempt to establish the dollar value of petroleum products entering the State of Maine is faced with the problem of price changes. At present the petro- leum industry is plagued by a worldwide shortage of tanker transportation. Oil industry spokesmen claim that the continued closure of the Suez Canal, forcing tankers from the Persian Gulf to travel around Africa, the shutdown of the Tap- line across Syria, and cutbacks in Libyan oil production by government directive, have all contributed to this situation. As a result chartered tanker rates have ap- proximately tripled. This action has particularly affected the price of residual oil in New England, much of which is imported. In addition, recent legislation re- quiring the use of low-sulfur fuel has increased the demand for this type of fuel in excess of supply capability. The heavy upward pressure on the pricing sched- ule is considered to be a short term phenomenon and will equilibrate over the long term. Therefore, for the purpose of this study, we have attempted to dis- count the short term situation. Our analysis uses the year 1968 as base data partially because of the price structure problem just cited (during 1968 oil prices were reasonably stable and consistent with general trends) and partially because the types of information needed for this study were last reported in detail for that year. Another associ- ated problem is that not all users pay the same price for certain types of oil. Large volume users obtain their oil through negotiated contracts and the price VI'.zt ~ per barrel can vary significantly. Our estimates are the average price paid for the year 1968. Table 2-2 gives the dollar value of each major product category. In Table 2-2(A), similar information is given for the crude oil handled at Portland Harbor as well as other details pertaining to that operation. TABLE 2-2 CONSUMPTION PICTURE - 1968 - STATE OF MAINE (Refined Products) Product Volume' $/Bbl. Total $ Value � Gasoline 10,300,000 bbls. $10.30'* $106,000,000 * Jet Fuel 941,500 " 6.30 5,940,000 * Kerosene - 2,285,000 " 6.30 14,400,000 * Distillate type/Heating Oil 8,540,000 " 6.30 53,200,000 * Distillate type/Fuel Oil 1,232,000 " 6.30 7,750,000 Residual type/Heating Oil 2,280,000 " 2.00 4,560,000 Residual type/Fuel Oil 12,370,000 2.00 24,740,000 * LPG 590,000 " 11.00 6,500,000 38,538,500 bbls. $223,090,000 * Source of Volume Data - Yankee Oilman, Fuel Trades Fact Book - March 1970 Residual Oil Calculated from Tonnage Handled at Ports � * Gasoline price does not include Federal and State Tax 1 barrel (bbl.) = 42 gallons See Table 2-1 for Product Definitions 55 TABLE 2-2(A) CRUDE OIL - ESTIMATED VALUE (1968) Crude Oil 140,000,000 bbls. $2.27 $318,000,000 Venezuelan crude - price quote Fortune September 1, 1967 PORTLAND PIPELINE INFORMATION No. of Year Volume Bbl/day Cargoes 1970 156,220,000 428,000 445 1969 142,928,000 392,000 438 Pipelines 3 to Montreal 24"-18"-12" Design Capacity Present capacity 528,000 B/D to be in- creased in 1971 to 550,000 B/D with fur- ther increases up to 627,000 B/D possi- ble with existing lines. Storage Capacity 3,560,000 bbls. (max.) 3,120,000 bbls. working capacity Payroll $1,300,000 - $1,200,000 annually Operating Cost (direct) $4,000,000 - $3,500,000 annually Property Tax $524,000 annually Secondary Benefits Estimate of $10,000/ship spent at Port- land Harbor facilities - approximately $4,400,000 on an annual basis. Source: Portland Pipeline Corporation It should be noted that this estimate shows only the dollar value of the prod- ucts consumed or transported in the State of Maine. It does not attempt to meas- ure the value added by Maine concerns. Personal Income and Petroleum To establish an economic perspective, it is necessary to look at the entire Maine economy. Table 2-3 presents information pertaining -to personal income for the State of Maine. Personal income is the sum of all payments received for par- ticipation in current production. The transfer payments referred to are payments for other than productive services, i.e., relief payments, veterans' benefits, etc. 56 xg jp I ~~~~~~~~~~~~~~~~~~~~ 40 r K s- 4U~~~~--R,~~ ~ ~ 'A MIA Bell 041"'411"',~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ .AS C II',, UR- TABLE 2-3 PERSONAL INCOME - STATE OF MAINE (in millions of dollars) 1968 1969 Wage and Salary Disbursement 1,785 1,911 Farms 21 22 Contract Construction 89 108 Manufacturing 651 674 Wholesale/Retail trade 283 309 Finance, Insurance and Real Estate 66 72 Transportation, Communications, and public utilities 107 117 Services 178 199 Government 382 402 Other industries 7 7 Other Labor Income 98 106 Proprietor's Income 271 305 Property Income 401 431 Transfer Payments Less: Personal contribution for social insurance (94) (107) Total Personal Income 2,768 2,987 Source: Survey of Current Business, August 1970 This income was generated by a labor force of approximately 380,000. The oil industry employs on the order of 6,000 persons or 1� % of the labor force. It is difficult to make an accurate estimate of the contribution that the oil industry makes to total personal income. However, wages and salaries are on the order of $30,000,000 which represent about 6% of all wage and salary disbursements in Maine. Many retail establishments in the oil industry are proprietorships; there- fore, considerable income accrues to owner/operators. In addition, a sizeable portion of property income can be attributed to the industry. Primary and Secondary Benefits of the Maine Petroleum Industry As we have already pointed out, the petroleum industry does not play a dominant role in the employment picture in Maine nor does its contribution to personal income appear to be a significant factor. Certainly those individuals relying on the petroleum industry for their livelihood will be quick to differ with this opinion but in the overall context the statement is an accurate one. What is -it then that does make the industry such a dominant force? It supplies raw energy. A key indicator of an area's standard of living is the amount of energy each individual has available for his use. Twentieth century life styles of the indus- trialized nations, as well as future economic growth, are directly dependent on 58 the availability of energy and the ability to transform that energy into produc- tive uses. The simple fact that the petroleum industry is the main supplier of raw energy goes a long way toward explaining its importance to modern economic life. For example, in the State of Maine 98% of all households are heated by oil.a (This compares with a national average of 36%.) Virtually all forms of transporta- tion in the State utilize a petroleum product as fuel. Of the electrical generating plants in the State using fossil fuels as a source of raw energy (approximately 60% use fossil fuels, the balance using water power), the fossil fuel is a petroleum product.4 Industrial, commercial and institutional heating requirements, as well as industrial process requirements appear to use a high percentage of petroleum products. What does this heavy dependence on petroleum products mean? It means that one of the inputs, required to sustain the present level of economic life and to foster future economic growth is petroleum. Why doesn't Maine use alterna- tive forms of raw energy? Basically because other forms are either in short sup- ply or hindered by technical difficulties. The relatively low population density of the State of Maine and the distance from supply sources contribute to the high distribution costs associated with energy marketing in the State. These factors -account partially for the lack of competitive forms of energy. Perhaps the most graphic way to show the relationship between the productive output of an area and its consumption of energy is to present the historical data available for the United States. Figure 2-1 presents this information. GRAPH FIGURE 2-1 GROSS NATIONAL PRODUCT AND OIL CONSUMPTION 800 Z~~~~~~~~~ t~~~~~~~~~~~~~~~~~~~~~~~C ra 0oo �-'600 CONSTANT DOLLARS 1958 INDEX 0400 0 0 3.6 4.0 4.4 4.8 OIL CONSUMPTION-BILLION BARRELS 59 Consumption of Petroleum Products A general study of energy economics by the Chase Manhattan Bank in 1968 suggests that the major uses of petroleum can be broken down into four major categories: (1) Transportation, (2) Residential Heating, (3) Electrical Utilities - conversion of thermal energy into electrical energy, (4) Industrial/Commercial - use as an energy source in production processes. Carrying this breakdown one step further we have determined the various products consumed by each major use. These data will be particularly useful in the forecasting phase as the growth rates of the major uses are more easily estimated than the growth rates of the in- dividual products. The close correlation between major use and the amount of petroleum products consumed by each use increases the level of confidence as- sociated with parameter estimates. Table 2-4 presents the breakdown of petro- leum products by major uses of energy and is a general indication of the import- ance of particular petroleum products with respect to type of final consumer. TABLE 2-4 BREAKDOWN OF PETROLEUM PRODUCTS BY MAJOR USE OF ENERGY (1968) IN MAINE 1. Transportation Motor Gasoline 10,300,000 Jet Fuel 941,500 Kerosene 49,000 Distillate Fuel Oil 737,000 Residual Fuel Oil 1,750,000 LPG 53,300 13,830,800 bbls. 2. Heating - Residential Kerosene 2,236,000 Distillate Heating Oil 7,685,000 LPG 538,000 10,459,000 3. Electrical Utilities Distillate Fuel Oil 115,000 Residual Fuel Oil 8,450,000 8,565,000 4. Industrial-Commercial Distillate Fuel Oil 1,227,000 Residual Fuel Oil 4,350,000 LPG 44,000 5,621,000 TOTAL 38,475,800 bbls. Notes: Volumes are in barrels Source: Yankee Oilman, March 1970 Residual oil figures calculated from tonnage handled at ports. 60 5T., ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~VIU I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1 GRAP TABLE 2-4 CONSUMPTION BY MAJOR USE IN PERCENT INDUSTRIAL COMMERCIAL 120 INDUSTRIAL COMMERCIAL TRANSPORTATION ELECTRICAL 16% 4O a8 25~ TRANSPORTATION HEATING-- RESIDENTIAL HEATING32 152o RESIDENTIAL 522 ELECTRIAL MAINE UNITED STATES Notes: United States data are for total energy supplied by all sources. Reference: Outlook for Energy in the United States, Winger et al. Chase Manhattan Bank 1968. State of Maine data are derived from Table 2-4 and include energy supplied by petroleum products. Since only 5-10% of Maine's energy is attributable to non-petroleum sources the two pie charts are comparable. The State's relatively low industrial output is consistent with the level of energy used by the industrial/commercial sector. Also the low population per square mile is reflected in the transportation sector. Port Activity in Petroleum Petroleum is brought to Maine by water transportation. For the purposes of this study, we examined port activity along the coast and determined the relative importance of each facility with regard to refined petroleum products. Table 2-5 presents the results of this investigation. Portland Harbor, the Penobscot area (Bucksport to Bangor) and Searsport Harbor account for 99% of the refined prod- ucts activity in the State. The table includes three lesser ports for comparison. 62 Other coastal towns receive some petroleum products but in even smaller amounts than the last port on the list. The three major ports are capable of handling ocean going tankers. The lesser ports are serviced by smaller coastal vessels and oil barges that load at the major ports and deliver to the many small coastal facilities. This study assumes that all petroleum products coming into Maine enter at one of the three major ports. This assumption is supported by Table 2-5. TABLE 2-5 RELATIVE IMPORTANCE OF PORTS HANDLING REFINED PETROLEUM PRODUCTS ALONG THE MAINE COAST Port Volume Percent of Total (1) Portland 30,000,000 bbls. 67 (2) Penobscot (Bucksport to Bangor) 9,050,000 " 20 (3) Searsport 5,450,000 " 12 (4) Cobscook Bay/Lubec (Eastport) 210,000 " .5 (5) Rockland 140,000 " .3 (6) Moosabec Bar (Jonesport) 120,000 " .2 Note: Estimates based on tonnage handled as reported by Corps of Engineers - data is for 1968. Further breakdown of the product mix handled at each of the three major ports is tabulated in Appendix The Tanker Situation As we pointed out earlier, most of the activity at Maine seaports is concen- trated in tanker traffic. This section will take a closer look at the tankers that carry the oil with special note of the trends developing in this segment of the shipping business. Tankers are classified in dead-weight tonnage (dwt) which expresses a ship's total carrying capacity, including crew, provisions, and bunker fuel. Actual cargo carrying capacity is slightly less than the dwt. figure. In other words, a 50,000 deadweight-capacity is slightly less than the dwt. figure, for ex- ample, a 50,000-deadweight-ton tanker can lift about 47,000 tons of crude. Refer- ence is sometimes made when speaking of tanker size to those built during World War II known as T-2's. These ships were 16,600 dwt. and about 500 feet long. At the present time most of the vessels in normal coastwise service are limited to 70,000 - 90,000 dwt. range due to draft restrictions. 63 NA~K I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I '4'~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~'O '4~~~~~~~~~~~o Despite the lack of deep water harbor facilities in the United States, the world tanker fleet has been rapidly expandiing its average cargo carrying capaci- ty. In 1956 the lowly T-2 had been dwarfed by the then largest 45,000 dwt. tanker. Ten years later, the total carrying capacity of the free world fleet had doubled and the size of the largest ship was 210,000 dwt. Now the largest ships in operation are the 326,000 dwt. Japanese built "super mammoth" tankers, chart- ered by Gulf Oil. However, the "super tanker fleet" as the really big ones are known, appears to have settled on 200,000 ton vessels as being the optimum eco-- nomic size. The draft on a vessel this size is about 60 feet. What about trends in the size of oil tankers operating in the coastal waters of Maine? The following chart constructed from data kept by the Corps of Engi- neers will serve as an example. For a three year period, the number of tankers entering Portland Harbor are related to their approximate draft requirements. With regard to the smaller draft vessel (36 feet and less) no trend is evident; how- ever, in the over 36 feet categories, a definite trend toward the deeper draft ves- sels is evident over this same period. It should be noted that the maximum draft allowable in Portland Harbor is approximately 45 feet, which suggests that the port is close to operational capacity. With the growing demand for petroleum and the advent of the super tanker fleet, it is little wonder the oil industry is concerned about getting the oil ashore. There are very few ports in the world and none in the United States that can handle a ship much larger than 100,030 tons. (Draft requirements of about 50 feet.) The 326,000 ton super mammoths of the Gulf fleet are serviced by an oil transfer facility at Bantry Bay in Ireland. From Bantry Bay the crude oil is taken to European refineries in smaller shuttle tankers. Storage and Transportation Facilities Each of the three major coastal facilities have significant storage capacity which is the initial link in the distribution chain. From these points petroleum products are transported to the final consumer by pipelines, railroad tank car, or over-the-highway tank truck. The following table indicates the storage capacity available. TABLE 2-6 STORAGE CAPACITIES Location Storage (bbls.) Principal Operators Portland/S. Portland 10-9,000,000 All major oil companies Searsport 8- 600,000 C. H. Sprague & Son Shell Oil Company Bucksport 10- 800,000 C. H. Sprague & Son Webber Tank Inc. Other major storage areas are located at Hallowell (near Augusta) and at Bangor. A 6-inch diameter pipeline designed to carry refined products links Port- land, Hallowell and Bangor, a distance of 135 miles. 65 FIGURE 2-2 NUMBER OF TANKERS ENTERING PORTLAND HARBOR BY DRAFT CLASSIFICATION 240 m 1966 go 1967 IC 1968 200 -- _ 160 :-?6 "=120 80 40 21-24 25-28 29-32 33-36 37-40 41-44 45+ DRAFT IN FEET 66 Description of Principal Harbors The Coast of Maine has numerous harbors, several of which play a leading role in the marketing and distribution of petroleum products. These are described briefly in this section of the report. Portland Harbor Portland Harbor is located between Portland and South Portland, fifty miles northeast of the Maine-New Hampshire border and about one hundred miles from Boston. The channel entrance at the end of Casco Bay is marked by Portland Head Light. The entering channel is one thousand feet wide, and dredged to a forty-five foot depth at mean low water. Off South Portland is a large forty-five foot anchorage basin. Adjacent to this, at the head of Front Harbor channel is an- other anchorage basin about thirty feet deep. Proceeding up Fore River, which divides Portland and South Portland, the thirty-five foot deep channel narrows to one hundred feet at the Portland drawbridge. Fore River Channel, dredged to thirty-five feet at mean low water, includes a turning basin. Piers and facilities for off-loading of petroleum tanks, are situated on the South Portland side of the channel, and piers for handling dry cargo and for ferry service are located on the Portland side. Searsport Harbor Penobscot Bay cuts deeply in the main land at the midpoint of the Maine Coast. About thirty miles from the open ocean is Searsport Harbor. Freighter and tanker traffic tie-up at the docks located at Mack Point. The approach is open and almost due north. The channel (five hundred feet at the narrowest point) and the turning basin, 1,500 feet, are dredged to a depth of thirty-five feet at mean low water. Berths for two piers are dredged to thirty-two feet. One of these piers is owned by the Bangor and Aroostook Railroad. Searsport is the southern loading point for the railroad which serves the northern counties of Maine. Bucksport Harbor Leaving Searsport and travelling northward on the Penobscot River, one proceeds through the Bucksport Narrows, under the Waldo-Hancock Bridge, where the water depth is fifty-eight feet, to Bucksport seven and one-half miles from the mouth of the river. The berths at Bucksport can accommodate any vessel capable of navigating the Narrows. However, at the start of the Narrows, near the southern end of Verona Island, the water depth is twenty-three feet at mean low water, thus limiting the size vessel that can reach Bucksport. Penobscot River Bucksport to Bangor, on the Penobscot River, is a distance of twenty miles. Small coastal tankers can navigate the river. From Bucksport to Winterport (four miles north of Bucksport) there is a three hundred fifty foot wide, twenty-two foot deep channel. The river winds northerly through Crosby Narrows, Sterns Mill and South Brewer, where the controlling depth is fifteen feet. The harbor at Bangor- Brewer is fourteen feet deep. 67 V - '- 7x V4 9 - -s-- -9 - 9, "I: Rockland Harbor Near the entrance to Penobscot Bay is Rockland Harbor about seventy-five miles northeast of Portland. The waterfront activity at Rockland is centered around the fishing industry. It is the nation's leading lobster port and in com- mercial fishing is second only to Boston and New Bedford. There are several branch channels in Rockland Harbor - the main approach is two hundred feet wide and eighteen feet deep. Fourteen foot channels then branch out to form five separate channels to the various docking facilities. Eastport Harbor At Eastport, near the United States - Canadian border, lies Eastport Harbor. A combination "L" shaped breakwater and pier has twenty-one feet of water alongside at mean low water. Eastport is at the entrance to Passamaquoddy Bay and has a mean range of tide of eighteen feet. FORECASTS OF SUPPLY AND DEMAND FOR ENERGY Major Markets Demand forecasts with regard to the consumption of petroleum products for the United States are available; however, no forecast explicitly for the State of Maine is known. Therefore, it is the intent of this section to make a projection based on available information and our knowledge of basic trends in the economy and industry. Most petroleum forecasts are expressed in barrels per day or in units of energy. In this section, barrels per day will be used. In 1968, our base year, the United States required thirteen million barrels of petroleum products per day, and Maine required approximately 90,000 barrels per day or about .07% of national consumption. On an annual per capita basis, that reduces to 32.5 barrels for Maine compared to 24.3 barrels for the entire country. With this basic data for past consumption established judgments must be made for supply and demand, in addition to capital expansion, for the next few decades. Tbe four major uses or markets for primary energy, as noted earlier, are: 1. Transportation 2. Heating - Residential 3. Electric Utilities 4. Industrial - Commercial These markets consume and will continue to consume vast amounts of energy. The energy is supplied by a variety of sources - in Maine, the principal source is petroleum products, For decades ahead, there will be little change in the relative standing of each energy source. The lone exception appears to be the growth of nuclear energy. By 1985, nuclear energy will supply 9% of the nation's requirements (presently it supplies less than 1%) slightly reducing the percentages currently supplied by oil and gas. Figure 2-3 indicates the projected relative position of energy sources. 69 CGRAPH UNITED STATES ENERGY SUPPLY BY FUEL SOURCE quadrillion BTU figure 2-3 1oshare 120 3 100 8O~~~~~~~~~~~~~~~~~~~~~~' 60 ~~~40 \ 40 2 2 41 29 20 45 source/Hurmble Oil Co. 1960 1967 1975 1985 In the State of Maine, gas and coal are not significant factors in energy sup- ply; in the past, oil has filled approximately 90-95% of the requirements. 70 The major markets were examined with respect to United States require- ments and the regional requirements of the State of Maine. The individual analy- sis including a discussion of the necessary assumptions and the projection tech- niques employed are presented in the Appendix. It is necessary to combine the information on these principal markets to ar- rive at an overall forecast of future demand. The weighted average approach was utilized as follows: Market Weighting Growth Rate Weighted Rate Transportation .40 3.0% 1.20% Heating - Residential .32 1.0% .32% Electric Utilities .16 3.2% .51% Industrial - Commercial .12 3.0% .36% 2.39% Average Overall Growth Rate = 2.4% Per Year Our analyses of the major markets and their growth rates are consolidated and displayed graphically below. Assuming this growth rate for the long term, we can extend the forecast to the year 2000. FIGURE 2-4 ENERGY DEMAND IN MAINE 300 1 I 1 1 THOUS. BBLS. PER DAY 200 W V F, - 0p 100 - -"- 0 1960 1970 1980 1990 2000 GRAPH 2-4 71 Capital Expenditures Capital expenditures can be viewed as falling into one of two categories; the first includes normal expenditures necessary to expand facilities to meet future demand. (We have estimated the overall growth rate of future demand to be 2.4% per year.) The second category includes possible expenditures that might be required should certain events, such as construction of an oil refining com- plex, materialize. This second category will be discussed under a separate head- ing. Information relating to capital expenditures is sparse. Therefore, in order to make a projection several major assumptions concerning capital outlays have been made. We assume capital outlays will grow at a rate paralleling the growth rate of sales, and be slightly higher. We also assume that the portion of the total capital outlays of the petroleum industry which will be allocated to Maine will be in proportion to expected sales, Using these assumptions, we can construct the following picture of future capital expenditures for the State of Maine. GRAPH 2-5 24 1 1 CAPITAL EXPENDITURES 16DOLLARS- MILLIONS - 0 1960 1970 1980 1990 2000 72/ PLANNING IMPLICATIONS OF THE PETROLEUM STUDY This concluding section is a synopsis of planning implications drawn from the study of the oil industry in the State of Maine. A portion of our input was derived from published sources; the remainder of the information is based on opinions of individuals in the field. Organizations contacted during the study are named in the Appendix. Review of Important Factors One factor for consideration in future planning, highlighted by this study, is Maine's dependence on the petroleum industry. Of all energy consumed in the State, 90-95% can be traced to petroleum products. Maine must rely on external sources of supply for petroleum products. The study also delineates the relation- ship between economic growth and oil consumption, further underlining the importance of this energy source. Another factor having a significant effect on future coastal plans is environ- mental management. The Environmental Improvement Commission is charged with the responsibility of protecting the State's interests in this area. The Com- mission has had in effect for some years a system for classifying the coastal waters with regard to pollution level. The current trend is toward upgrading the classi- fication of the coastal waters, meaning the reduction of existing levels of water pollution and the discouragement of activities leading to increased pollution. This limits the locations along the coast that can be considered for future development by the oil industry to those areas already industrialized, with a relatively high pollution level. Petroleum development must also contend with the site selection law. This law enables the EIC to deny a proposal on the basis of environmental danger. The most publicized example of the conflicts arising among special interest groups in the State is the proposed oil refining complex at Machiasport. A re- view of the Machiasport case will highlight points for consideration in future planning. During the summer of 1968, Occidental Petroleum Company announced plans to build an oil terminal and refinery at Machiasport, Maine. The project had the support of the State's top officials and legislators at the time. The re- finery was to bring prosperity to an economically depressed region, and lower fuel oil costs for all New England. The attraction of Machiasport was deep in- shore waters, deep enough to accommodate super tankers. So attractive was the proposal that several other corporations began to show interest in developing the area. Soon, however, the voices of dissent were raised. The Natural Resources Council of Maine and then the Sierra Club challenged the accuracy of the prom- ises, and generated public concern over the effect of possible pollution on exist- ing marine industry and tourism. In addition, the suitability of the area for safe navigation by super tankers was highly criticized. Citizens from all over the State began to show concern and then doubts with regard to the venture. As a result, public resistance to the project was high when the legislature met for a special session in January of 1970. Two bills, known as 73 the siting bill and the conveyance bill, quickly became law and the Environ- mental Improvement Commission had new regulatory powers over coastal de- velopments. Plans for the Machiasport refinery complex, as originally perceived, were soon abandoned. The series of events that surrounded the Machiasport proposal point out the potential pitfall of uncontrolled development. The need for objective information, as opposed to the biased arguments raised during the controversy, is also pointed out. An answer to the question relating to where, along the coast, development will occur was also sought by this study. An answer to this question is merely a guess; however, certain indicators can be helpful in formulating future plans. Future developments relating to the oil industry can be categorized as follows: (1) supplying the future consumption needs of the people of Maine; or (2) bring- ing new petroleum operations to the State. New Petroleum Ventures Consumption demands have been forecast in previous sections. We believe normal replacement and modernization of existing facilities can meet the antici- pated internal demands. This means that the major coastal facilities at Portland, Searsport, and Bucksport could be modified gradually to meet Maine's require- ments. However, with regard to where and what form new petroleum operations will develop, we can, as noted earlier, speak only of the indicators. One possibility is the construction of an oil refinery, the major attraction be- ing water depths that can handle super tankers. Studies conducted for repre- sentative refining facilities indicate that a 100,000 B/D plant would involve an investment of $100-$150 million and employ 350-400 workers. The economics of such an operation were presented during the Machiasport controversy; however, the most volatile issue is environmental concern. The Maine coast has harbors that could be developed into deep water ports; the coast also presents difficult avenues of approach and dangerous weather conditions. Despite the availability of electronic navigational equipment for vessel guidance the possibility of an oil spill disaster still remains regardless of how remote that possibility is. Deep water facilities, whether for refining, storage, or transfer, are faced with this reality. The level of concern for the environmental health of the Maine coast dis- played by the citizenry has demonstrated that the people do not take the trade off between economic benefits and environmental risk lightly. The lack of deep water facilities on the East Coast may mean continued pressure for a complex along the Maine coast. An indication of this is the promotion of the Sears Island/ Maine Clean Fuels, Inc. proposal closely following the Machiasport proposals. Two maps were developed during the study to point out areas of possible expansion. One map (Figure 2-6) indicates the locations of existing facilities; gradual expansion of these facilities can meet the future consumption demands for the State. The second map (Figure 2-7) indicates possible deep water ports. The locations indicated have water depths of 60-90 feet or more and approach channels of approximately 3000 feet in width. The constraint of environmental 74 MAINE COASTAL ZONE BANGOR0L * DE EP WATER AREAS I PORTLAND 6t4 ~ % I,~~~~~~~~~S A tln tc c e a n STATE OF MAINE/STATE PLANNING OFFICE / EXECUTIVE DEPARTMENT MAINE COASTAL ZONE BANGOR OEXISTING COASTAL TERMINALS PORT1IAND SOUTH PORTLAND A tlIa nt ic O c e a n STATE OF MAINE/STATE PLANNING OFFICE/EXECUTIVE DEPARTMENT management indicates that site selection may be limited to areas with relatively high levels of water pollution, as determined by the EIC classification proced- ures. The planning implications surrounding offshore drilling can be broken into two parts: first, planning associated with exploratory drilling. Exploratory drill- ing is expected to take place sometime in the seventies. Restrictions relating to this activity could be minimal, providing proper regulations evolve during the exploratory phase. Second is the planning required if actual production takes place. Since the existence of oil fields off the Maine coast is unknown, we believe that a planning effort relating to oil production is not warranted at this time. The Energy Crisis and Maine Several factors relating to the production and distribution of petroleum products and other energy sources have caused an imbalance of the supply and demand picture, more commonly known as the energy crisis. In this section we shall comment on this subject and the implications for Maine. The causes of this situation are many and opinions differ widely over the relative causal effect of any one factor, however, the factors most frequently men- tioned by oil industry spokesmen are: * A worldwide shortage of tankers * Delays in nuclear energy facilities * Air pollution regulatidns relating to sulfur content of fuel oils � Refinery trends toward the more profitable lighter fuels The shortages involving petroleum products relate to the heavy fuels. The import quota does not affect the heavy fuels. However, crude oil is subject to the quota thus heavy oils refined in this country are indirectly influenced by the quota system. The trend at the refinery towards the lighter, more profitable, fuels ap- pears to, have a bigger impact on the industrial fuel market than the quota system. Notice that mention is not made to any worldwide shortage of energy sources. In fact, a recent study conducted for the Associated Industries of Massa- chusetts stated the following: The rise in fuel oil prices is also by and large not the result of a fundamental long lasting scarcity for this product. At the end of 1969 worldwide crude oil reserves were sufficient to cover 35 years of consumption at 1969 levels. Refiners generally have the flexibility to increase their crude runs and fuel oil yields to accommodate a reasonable increase in demand for this product. What about future prices and shortages? The shortages that exist are due to the complexities of production and distribution and not to fundamental short- ages of the raw product. If these problems can be handled efficiently (the Fed- eral Administration has taken several steps in this direction and the New England governors are pressing hard for further changes) there is good reason to believe that a market balance can be restored. Oil companies are currently adjusting 77 their production to produce increased quantities of low sulfur content fuel oil to meet air pollution regulations, however, there will be an increased cost associated with this change that is already manifesting itself in higher electrical rates and higher manufacturing costs. Consumer prices of all petroleum products can be expected to reflect at least a portion of the current inflationary trend. FOOTNOTES - PETROLEUM STUDY 1IThis information, taken from the June 15, 1970, issue of Fortune magazine, indicates that the petroleum industry is one that requires very large amounts of capital on a continuing basis. The cost of such capital should be recognized when analyzing the industry. 2 See Table 2-2. 3 1970 National Petroleum New Factbook Issue. Estimate of home heating fuels for 1968. 4~Percentages calculated from data found in Power section of The Maine Handbook - Statistical Abstract - 1968, Department of Economic Development. 5 The data relating to expected growth rates for the United States were extracted from Outlook for Energy in the United States, The Chase Manhattan Bank 1968 New York. 6 This estimate is based on the slope of the energy use curve shown in Figure 7. 7 We have assumned that the use of electrical energy will follow the general population trend. Maine's population growth rate is expected to be about �/ of the national rate. 781 ~~t THE ELECTRICAL- POWE-R STUD\\ INTRODUCTION TO THE ELECTRICAL POWER STUDY Of all the energy markets, none has experienced a more dramatic growth rate in demand for its output than the electrical energy sector, By 1980 the elec- trical energy sector is expected to account for as much as one-third of the total nation-wide energy utilization. One question that looms large in the planning efforts of both public and prviate interests is where will new power plant facili- ties and distribution lines be located. The level of concern for this matter is im- plied by President Nixon's environmental message for Congress presented Feb- ruary 6, 1971. In that message the President pointed specifically to the area of power plant siting. One of his recommendations would require states or regions to establish power plant siting agencies to which utilities would be required to submit their major construction plans for approval. The agencies would bold public hearings and certify specific sites, facilities and transmission routes well in advance of construction. It is interesting to note that the State of Maine passed legislation in 1970 that is based on a very similar framework. The President's message went on to encourage states to assume control of land-use planning within their borders as well as regulation in areas of critical environmental concern such as coastal zones and scenic and historic areas. The importance of the proposed federal siting bill (which is part of the same Presiden- tial package) for public and private power companies is the precedence it grants the siting authorities over existing state or local laws. The proposed new authori- ties would consider state and local interests, but their rulings would be final, sub- ject only to judicial review. Moreover, a utility having a certificate of approval from an authority and any necessary Federal licenses then would be authorized to use Federal powers of eminent domain, if necessary, to obtain land. The pro- posals, in allowing the individual state's to form the authorities, have implied that future siting will be administered at the state level, As an additional incentive to get things moving, those states that fail to act by 1974 would lose their share of $100 million proposed in federal land-planning assistance. The State of Maine has a particular interest in what is expected of the elec- trical power industry for a number of reasons. First, compared to the rest of the country, Maine's cost of electricity is high; as much as 30% higher in certain rate categories. Second, our overall consumption of electricity is lower than the na- tional average, an effect that may be linked to the rate structure, our industrial output, and the problems associated with making the entire energy market a truly competitive one. Third is the~ fact that Maine offers some of the advantages that have been cited as prerequisites for future power plant sites such as abundant cooling water and large tracts of land. As a result, Maine could become a major exporter of electrical energy. The electric power study of the Cycle IV - Public Investment Plan ties the emerging trends that will influence the power industry in the future together wvith the existing situation. The study begins with an analysis of the Maine power in- dustry as it is today. Then proceeds a discussion of what can be expected in the decades ahead, and finally the planning implications that evolved from the study as they relate to overall coastal planning. 81 THE PRESENT STATUS OF THE MAINE ELECTRICAL POWER INDUSTRY An Overview of the Industry The electrica-l power industry sells secondary energy. Electrical energy is pro- duced commercially by converting other forms of energy known as primary energy which includes such fuels as fuel oil or coal (fossil fuels), water, gas or nuclear. A generator is necessary to produce electrical energy which is then dis- tributed to various users. These generators in turn are driven by a device that uses primary energy, The power industry is characterized by its economies of scale. Users can generally obtain electrical energy most economically when the supply originates from one large generator rather than from a number of scattered small ones. Electricity can be transported very efficiently over long distances because of the unique advantage of being able to step-up and step-down the voltage level by means of transformers. At extremely high voltages the line losses are very small. (A line loss is the energy that is transformed into thermal energy when current flows in a wire; this energy cannot be recovered.) Once electrical energy is transported to an area where many users are located the energy is distributed at lower voltage levels. Power generating plants are classified in two main ways; the total amount of power the plant is capable of producing and the type of prime mover (i.e. the d~zvice that drives the generator, which in turn is readily identified by the primary energy used). The table below indicates the prime mover classifications. TABLE 2-7 CLASSIFICATION OF POWER PLANTS Type Description Steam-Electric Plant Most common type - steam turbine drives generator - the thermal energy required to manufacture steam is sup- plied by fossil fuels or nuclear fuels. Hydro Electric Plant Moving water is primary energy source. Pumped Storage Hydro Electric Plant Water is pumped to a storage reservoir then released to drive generators. Plants are used for supplemental power to an existing distribution system in most cases, Internal Combustion Plant Generator driven by engine. Fossil fuels utilized. Gas Turbine Plant Generator driven by fossil fuel turbine. 82 Some of the terms associated with the power industry need further explana- tion. In this section common ones will be outlined. The measure of electric power is watts. It is an indication of the rate at which work is being done. Con- sumers pay for electrical energy by the watt-hour or more commonly by the 1000 watt-hour known as the kilowatt-hour. One watt-hour is as one would expect - the use of one watt for a time period of one hour. In a sense, the power com- panies sell work (or its equivalent). The consumer pays for the amount of work delivered in electrical form. A given job can be done at a very high rate of doing work per unit of time and be accomplished quickly or the rate of doing work per unit of time can be low and the amount of time required to finish the job can be long. In either case, the total work supplied is the same and the cost to the user is the same. On the other hand, for a given facility there is a maximum rate at which work can be supplied to a user; if users want the facility to work faster it simply can't be done. Electrical power companies have to concern themselves with meeting peak demand, that is, supplying the maximum number of watts they will be asked to produce at any given time. If the connected load for a given power system ex- ceeds the generators maximum output then each user gets a little less energy per unit time than he wants. This situation leads to the well publicized "brown outs" and "black outs". Since most utility companies are faced with a level of demand high enough to result in a brown out only as a rare occurrence, it becomes un- economical to build the extra capacity needed to meet that demand. Thus one of the principle trade-offs the utility industry is faced with is designing a plant that will meet maximum demand yet can be operated efficiently over the long run. Reserve generators and interconnecting grid systems are approaches to this paradox, There is more than enough generating capacity in this country to meet maximum demands (Federal Power Commission Chairman John N. Nassikas re- leased estimates of net dependable capacity of 327,000 megawatts and an esti- mated peak demand of 254,000 megawatts for the Continental United States) however, utilities cannot always get the energy to the user the moment he flips the switch. Maine Electric Power In the State of Maine there are three principle firms that generate most of the electricity supplemented by a number of minor firms that utilize small in- ternal combustion engine/generators or buy their power from the larger firms. Several of the engine driven generators are located on remote coastal islands. The following table presents a picture of the relative importance of the power pro- ducers in Maine. To assist future planning it is necessary to know what the sphere of influence for an individual company is. Coastal zone electrical power is about equally split on a geographical basis between the Central Maine Power Company and Bangor Hydro-Electric Company. In terms of sales however, Central Maine Power Com- pany which operates in the. heavily populated southwestern counties, has a de- cided sales advantage in sheer numbers alone. 83 TABLE 2-8 RELATIVE RANKING OF MAINE UTILITY COMPANIES 1970 Power Generation Net Power Purchased Utility Megawatt Hours Megawatt Hours Central Maine Power Co. 3,670,158 869,225 Bangor Hydro-Electric Co. 547,218 388,881 Maine Public Service Co. 20,921 0 Aggregate of Other Co.'s 9,706 238,813 Total 4,248,003 1,496,919 Megawatts = 1000 Kilowatts The following map points the service areas for the utility companies operat- ing in the coastal zone. TABLES 2-8 through 2-12 compiled from company annual reports According to figures for 1970, approximately 65% of the power capacity in the State of Maine is attributable to a fossil fuel primary energy source. The re- maining 35% is water power. A breakdown of the power generating capabilities of the major Maine utilities is shown in Table 2-9. While many of the fossil fueled plants around the country use coal, Maine utilities needing thermal energy for the manufacturer of steam to run their turbines use petroleum products almost exclusively. TABLE 2-9 POWER GENERATION BY 1970 PRIME MOVER TYPE: MAINE UTILITY COMPANIES Power Generation K. V. A. - -- Company Thermal Hydro Engine Total Central Maine Power Company 454,756 310,327 51,308 816,391 Bangor Hydro-Electric Co. 63,236 48,336 35,000 146,572 Maine Public Service Co. 22,904 2,875 17,212 42,991 Aggregate of Other Co.'s 0 0 3,661 3,661 540,896 361,538 107,181 1,009,615 Also of importance to the coastal zone planning effort is the location of exist- ing facilities and the nature of those operations. Figure 2-9 is a map showing this information as well as the route of the 345 kv regional transmission line that will span the State and export power when the 855,000 kw Maine Yankee Nuclear Power Plant comes on line in 1972. 84 MAINE COASTAL ZONE figure 2-8 LOCATION OF SERVICE AREAS AnoRlo Bangor Hydro-Electric Company AUGUSTA w Central MainelPower Company , 4 PORTLAND g (~~~~~~~ tLegend PO RT ~LANDpQ& V4Y 1. Kennebunk Light and Power District 2. Lubec Water and Electric District 3. Matinicus Light and Power Company 4. Squirrel Island Village Corporation 5. Stonington and Deer Isle Power Company ( . /1,9) )r6. Swan's Island Electric Co-Op, Inc. 7. Vinalhaven Light and Power Company k g a t I a n t i c o c e a n . c/ STATE OF MAINE / STATE PLANNING OFFICE/ EXECUTIVE DEPARTMENT MAINE COASTAL ZONE figure 2-9 MAJOR BANCORo/ ' E LEC TR IC AL POWER .f \ , FACILITIES I T I /!a P OBr h y d r o o PO RTLt~'7 thermal -oil * thermal-gas O engine [E 345 KV line a tl a n t i c o c e an 345 KV line --- (under construction) STATE OF MAINE/ STATE PLANNING OFFICE/ EXECUTIVE DEPARTM.ENT I,~~~~~~~ Personal Income and the Utility Companies Plans regarding coastal development and public investment are necessarily linked with their expected economic impact. It will be necessary, as proposals evolve, to weigh the value of proposed changes against existing economic pat- terns. To provide a point of reference the employment picture in the electrical power industry is put in prospective with the overall state economy. An indication of the contribution of the electric power industry to Maine's economy can be obtained by comparing recent economic data. The most recent data for personal income for -the entire State is for the year 1969. Data relating to. the specific companies is for 1970, however, broad comparison can be made. Table 2-10 presents the personal income picture for the State. The work force during this time period was about 380,000 persons. TABLE 2-10 PERSONAL INCOME STATE OF MAINE 1968 1969 (Figure in Millions) Wage and Salary disbursement 1,785 1,911 Farms 21 22 Contract Construction 89 108 Manufacturing 651 674 Wholesale/Retail trade 283 309 Finance, Insurance and Real Estate 66 72 Transportation, communications, and public utilities 107 117 Services 178 199 Government 382 402 Other industries 7 7 Other Labor Income 98 106 Proprietor's Income 271 305 Property Income 401 431 Transfer Payments Less: Personal contribution for social insurance (94) (107) Total Personal Income 2,768 2,987 Source: Survey of Current Business, August 1970 87 The wage and salary story for the utility companies is depicted by Table 2-11. TABLE 2-11 EMPLOYMENT AND WAGES: 1970 MAINE UTILITY COMPANIES Company No. of Employees Payroll Central Maine Power Co. 1,859 15,842,000 Bangor Hydro-Electric Co. 341 2,941,000 Maine Public Service Co. 231 1,880,000 Aggregate of other Co.'s 111 515,000 2,542 21,178,000 Because the utility industry is highly capitalized, the number of employees as a percentage of the total work force is small, however, its secondary impact on the economy cannot be overlooked. As a supplier of energy, this industry is an important factor of production to other industries. Over one-half of all sales are to commercial and industrial users. In addition, continued construction by utility companies provide construction jobs. An indication of the activity in these two areas can be obtained from the following table. TABLE 2-12 SALES AND CAPITAL INVESTMENT: 1970 MAINE UTILITY COMPANIES Company Plant Investment Gross Revenue Central Maine Power Co. $350,000,000 $ 76,497,000 Bangor Hydro-Electric Co. 55,500,000 14,998,000 Maine Public Service Co. 31,000,000 8,162,000 Aggregate of Other Co.'s 3,200,000 1,231,000 $420,700,000 $100,888,000 The $200 million Maine Yankee Nuclear Power Plant at Wiscasset is an example of jobs being credited to utility construction. At the end of 1970, $42.5 million had been injected into the Maine economy as a result of the Maine Yan- kee project. Approximately 1000 construction workers are involved in the project. 88 Utility Rates One disturbing factor relating to electrical power in the State of Maine is the fact that its cost is high in relation to the rest of the country. A survey by the Federal Power Commission in 1969 showed that the typical electrical bill for resi- dential service put Maine in the forty-sixth slot among all states. In fact, for some residential service the revenue per kilowatt-hour for all New England was 30% higher than the rest of the nation. The reasons for this differential are not alto- gether clear however many have been presented. The average annual usage of electricity by residents of Maine is lower than the national average; also of con- cern is the fact that rate structure, as presently designed, charges the highest per unit cost for low levels of use. As usage goes up the consumer's per unit cost for electrical power goes down. The economies-of-scale associated with electrical power distribution may preempt any arguments against this pricing structure, however it would seem that the highest unit cost is directed toward the user with the least ability to pay. Residential fuel oil, which powers many of Maine's gen- erators, is a higher cost fuel than some of the fuels used in other parts of the country. (It is still cheaper to use fuel oil than coal however unless the power plant is within a reasonable distance of the coal fields.) The regulation of utility rates tends to encourage the use of equipment for as long as possible, thus equip- ment that could be replaced by more efficient versions may be staying on line longer than necessary and contributing to the higher costs. The network systems needed to channel power from areas experiencing low demand to one that is faced with excess demand have not been fully developed. None of these reasons above can fully explain why Maine's power costs are at their present levels, how- ever, since energy is directly linked with economic development it is necessary to make Maine competitive with regard to the energy spectrum. There is con- siderable disagreement about just how to do this but general agreement regard- ing its overall desirability. ELECTRICAL POWER FORECASTS Annual and Peak Demands The electric power industry is a regulated industry, that is the rates it charges for its product are administered by law. As a result, a large amount of data re- lating to the operation of utility companies is available to the public. This sec- tion presents a review of the forecasts relating to future electrical energy levels. The forecasts are the result of extensive industry studies by various groups. The projected energy requirements in millions of kilowatt-hours for the State of Maine and the other New England States is presented in Table 2-13. The aver- age annual growth rate is estimated at 6.56% for the period 1970-1990 based on historical trends. 89 TABLE 2-13 ELECTRICAL ENERGY REQUIREMENTS STATE OF MAINE 1970-1990 Average Projected Annual Energy Requirements Growth (Millions of Kilowatt-Hours) State Rate 1970 1980 1990 Maine 6.56% 5,385 10,165 19,177 New Hampshire 7.98 3,614 7,837 16,781 Vermont 10.26 2,648 7,077 18,672 Massachusetts 7.58 25,858 54,024 111,431 Rhode Island 7.57 4,159 8,686 17,906 Connecticut 8.28 17,170 38,279 84,252 Total 8.00 53,449 115,903 249,042 New England 7.88% 58,834 126,068 268,219 Source: A Study of the Electric Power Situation in New England 1970-1990 H. Zinder et al Sept. 1970 It should be noted that the average annual growth rate shown here is a com- pounded rate (i.e. in calculating the energy level of a given year the level of the just previous year is expanded by 6.56%). This also means that the absolute in- crease each year is accelerating. Along with the overall electrical energy requirements it is important to look at the projected peak demand for the coming decades. The following table pre- sents the estimates that have been generated relative to peak demand. TABLE 2-14 PROJECTED PEAK DEMAND: STATE OF MAINE Projected Peak Demand (Thousands of Kilowatts) State 1970 1980 1990 Maine 1,003 1,879 3,529 New Hampshire 737 1,570 3,320 Vermont 540 1,418 3,694 Massachusetts 5,271 10,824 22,046 Rhode Island 848 1,740 3,542 Connecticut 3,501 7,669 16,669 Total 10,897 23,221 49,271 New England 11,900 25,100 52,800 Source: A Study of the Electric Power Situation In New England 1970-1990 H. Zinder et al. Sept. 1970 90 PROJECTED PEAK ELECTRICAL LOADS IN THE NORTHEAST figure 2-10 8f - - W-- - 8-~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~ 107 .-' 106 . 1970 1980 1 99 I 20 _ Luof- . o7 _ 1970 1980 1990 Similar data is shown graphically in Figure 2-10 to indicate the relative magni- tude of the projected peak electrical loads for the northeastern United States, New England and the State of Maine. Note that since the loads are increasing by a given percentage of each previous years level, the projections are straight lines on a semi-logarithmic plot. We can expect that the utility companies will be scheduling their construc- tion plans approximately in accordance with the expected gains in peak demand. For Maine during the 1970's this means the start up of the Maine Yankee Atomic power power rated at 855 megawatts and the construction in 1977 of a conven- tional fossil-fueled steam plant at Cousins Island near the existing Wyman fossil- fuel plant. The Cousins Island plans call for a 700 megawatt facility. An addi- tional unit or two at Cousins Island or the addition of another nuclear unit at Maine Yankee could provide for Maine's electrical power needs through the 1970-1990 era.2 With regional and possibly even national electric power grids, the location of power plants may not necessarily follow the classic rule of locating near sources of demand. Maine's advantages for power generation of cold water and available space may dictate more consideration of the location of such facilities here in Maine. Of further interest is the breakdown of energy requirements by class of ser- vice. While data has not been compiled for the State of Maine, estimates have been made for New England and this data can serve as a guide for future plan- ning. The energy requirements by class of services for all of New England are shown in Table 2-15. The relative importance of each category can be implied by, this table. Electrified transportation is not a factor in the Maine power situa- tion. TABLE 2-15 ENERGY REQUIREMENT BY CLASS OF SERVICE IN NEW ENGLAND Millions of Kilowatt-Hours 1970 1980 1990 Rural and Residential 18,375 39,717 85,797 Commercial and Industrial 32,653 69,604 148,070 Street & Highway Lighting 756 1,323 2,544 Electrified Transportation 131 124 128 All Other 1,392 3,009 6,520 Total Ultimate Consumption 53,307 113,777 243,059 Losses 5,527 12,291 25,160 Total Requirements - Energy for Load 58,834 126,068 268,219 Source: A Study of the Electric Power Situation In New England I-I. Zinder et al Sept. 1970 92 2 Interview with Professor William Shipman, Bowdoin College, June 2, 1971 Now~ -_ Mix~~~~~~~~~~~~~~w ul ~~~~~~~~~~~~~~~~~~~ M~ss~IV ilk- IA 4~~~ A A6 Maine's Yankee Atomic Power Company In September of 1967, the Maine Yankee Atomic Power Company announced plans to build a 855 megawatt nuclear-fueled steam electric generating plant at Bailey Cove in Wiscasset, Maine. Construction is well along now and the facility is to be operational in the middle of 1972. The Maine Yankee Atomic Power Company, which will own and operate the facility, is made up of eleven New England utility companies. The ownership is divided in accordance with the amount of electrical energy that will be supplied to each owner for distribution. The Central Maine Power Company owns 38% of the nuclear facility and when the new plant is operational, Central Maine's capacity will increase by 325 mega- watts. The Maine Electric Power Company, Inc., is another firm with similar par- ticipation rules as those for the nuclear plant. Maine Electric Power Company is constructing the 345 kv transmission and distribution network that is spanning the State. Past Projections Future planning depends on the ability to predict, with a certain degree of accuracy, what lies ahead. In hopes of lending a cautionary note to this section it is worthwhile examining what has happened in recent years regarding power forecasts. Power companies serving the major urban areas of the northeast have underestimated their peak future loads since about 1965. The conventional yard- stick was the Federal Power Commission's 1964 National Power Survey. This survey forecasts a declining rate of peak demand growth. Just the opposite has occurred. As a result some power companies have experienced brown outs and, on occasion, black outs. The utilit'es have had to scramble to get extra generat- ing power on line. Delays in getting nuclear fueled plants constructed com- pounded the forecast errors. High cost, low power gas turbine units have been installed as a stop-gap measure. (The gas turbine units can be brought on line quickly). During the same time period, planners placed a heavy emphasis on inter-connections (grid systems designed to ship power from areas of excess cap- acity to one with a shortage) consequently plant reserve power capabilities were trimmed. One consideration, seemingly overlooked, was that all the pooled sys- tems contributors might need to tap the system at the same time. About the only way out is increased nuclear capacity. Consolidated Edison of New York expects 35% of its capacity to be nuclear units in five years, however, in 1965 the same company expected 24% of its capacity to be nuclear units by 1970, the actual total turned out to be closer to 1%. All of this is not to say that poor planning is totally to blame, but certainly the state of affairs would be different if demand had been predicted to accelerate. What is suggested is that projections be continually monitored to spot devia- tions between them and actual demand. Also since power plants need lead times of approximately ten years, every effort should be made to use the most sophisti- cated forecast techniques available even to the extent of making several inde- pendent forecasts of the same variables then comparing the predictions. The additional expense can be justified. 94 I , :- - - - --t I I w V". T i I Kim PLANNING IMPLICATIONS OF THE ELECTRICAL POWER STUDY The Areas of Conflict The public controversy that continues between the utility companies and public interest groups today can be traced to two general areas: 1. The environmental problems associated with nuclear and fossil fueled powered generating stations such as air and radioactive pollutants as well as siting problems. and... 2. The proper balance between public or private power institutional ar- rangements. In this section we shall review some of the current thinking in these areas and make suggestions that will help the future coastal plan effort. With regard to the problems associated with nuclear fuel several general statements can be made. Steps have been taken to guard against the possibility of releasing radioactivity to the surroundings. Structure walls are designed to withstand earthquakes and hurricanes. A vaporproof steel liner is also installed to trap any leakage, however entire underground complexes have been proposed to further reduce the possibility of such a radioactive exposure. Another allied factor is the problem of disposing of atomic fuel once its use- fulness in the reactor has ended. Proposals to date call for the burying of rad- wastes, as these radioactive materials are called, well beneath the earth's sur- face. The long range effects of such a practice are still not entirely known. Nuclear power plants need large amounts of water to condense the steam used to operate the turbines. Cold water is generally taken from a natural source, pumped through the condensers, and returned to the source at a higher tempera- ture than when it left. If the water temperature is altered significantly aquatic life is upset - possibly destroyed. Present plans call for limiting the allowable temperature rise and using cooling towers when necessary. Interestingly enough the field of aquaculture (increasing the yield of marine life) has shown that some temperature rise may be beneficial for certain species. The concept of a multiple- use resource is pointed out by this possible dual use of sea water. The second major area where conflict has arisen is in the area of air pollu- tion. Next to automobiles, smoke stacks are the chief polluters of the nation's air. The principal contaminants are sulfur oxides. Power plants in the United States account for about 50% of the man-made sulfur dioxide that pours into the atmos- phere. As regulations become stricter, industry has tried turning to low-sulfur fuel, but what is classified as low-sulfur fuel one year may not be classified so the next. For instance, New York City's Consolidated Edison Company, the oil burn- ing utility that now operates with a 1% sulfur limit on fuel will be restricted to 0.3% by the end of the year. Also, there is still considerable public and scientific debate about the impact on persons of A.E.C. approved radioactivity emissions particularly within range of 20-30 miles from a given plant site. 96 To combat this problem, the oil companies are beginning to refine low-sulfur fuels. At present, however, it is difficult to obtain low-sulfur fuel oil in the quan- tities required. Another alternative is the installation of a scrubber in the smoke stack. A scrubber is a kind of shower bath in which a liquid absorbs the sulfur dioxide and reacts with it. Most scrubbers (a variety of these devices are being marketed) are somewhat experimental in nature and their effectiveness has not been fully assessed. In early February of 1971, air pollution control regulations were made more strict at the national level. The Air Pollution Control Office of the Environmental Protection Agency released its new national limit on sulfur dioxide. The new limit, which for sulfur dioxide would be an annual average concentration of 80 micrograms per cubic meter of air, will have significant impact on the individual states. States will be required to have approved plans for implementing the new national standards by the summer of 1972. Planning Power Plant Sites The utility companies will continue to expand capacity to meet the rapidly growing demand; that much is known, the next question is where will the new plant be placed. All power companies are faced with the problem of choosing and acquiring new sites. The Maine Coast offers both advantages and disadvan- tages with regard to meeting acceptable site criteria. Four of the principle factors considered in power plant siting are listed below. * Availability of large amounts of cooling water for stream condensers. * Access to transportation during construction phase and for employees when plant is operational. * Foundation conditions. � Location relative to load centers and transmission networks. Seldom can all these factors be satisfied completely by one site therefore a com- promise is usually necessary and the cost of sacrificing one factor must generally be offset by an advantage in another. The Energy Policy Staff of the Office of Science and Technology has pub- lished guidelines for power plant siting. Below is an outline of those guidelines and comments that will update the original statements. 1. The design of nuclear fueled power plants must meet the safety require- ments of the Atomic Energy Commission. 2. The design must meet air pollution criteria and standards as established by the individual states and the National Air Pollution Control Admin- istration of the Department of Health, Education and Welfare. The Environmental Protection Agency established in July 1970 now admin- isters the national standards. 3. Water quality standards for thermal effects must be met as outlined by the individual states and the Federal Water Pollution Control Adminis- tration of -the Department of the Interior. The Environmental Protec- tion Agency now handles this responsibility at the Federal level. 97 74~ ~ ~ 4~ V4~~~~~~~4 The first three guidelines are regulated as noted by the Environmental Protec- tion Agency. The remaining guidelines are mainly subjective in nature and are applicable to general planning. 4. Develop the opportunities for public recreation at plant sites and avoid impairing and existing recreational areas. 5. Consider aesthetic values in the overall design and give attention to the appearance of power plant facilities and transmission lines. 6. Recognize the rural development considerations in plant siting. 7. Consider the siting requirements and the lead time requirements neces- sary to provide reliable service. 8. The nation's defense preparedness is to be considered in determining location and capacity. 9. Attention must be given to the routing of transmission lines and the problems of transmission line right-of-way for alternative plant loca- tions. 10. Plant capacity should be large enough to meet regional load demands, including mutually agreeable arrangements for meeting the bulk power requirements of the small utility companies. 11. Consideration should be given to the prospects of combining the power plant with other commercial ventures, such as aquaculture, recreational facilities, industrial centers, and even new cities. An example of this type of integration is provided in another section of this report. At the State level much of the responsibility associated with power plant siting lies with the Maine Environmental Improvement Commission (EIC). The siting law passed by the First Special Session of the 104th Legislature in 1970 requires public hearings prior to most large construction to insure that the intended use of the site does not endanger the ecological balance. This law is one of the most far reaching laws relating to environmental control ever passed by any state. The results of the initial test cases should form the basis for any modifications to the law that might be required to insure that the legislature can achieve its desired objectives. With regard to thermal effects of discharged condenser water (specifically the allowable temperature rise) several utility companies located on Lake Michi- gan in the Chicago Area have been wrestling with this problem recently. Envi- ronmental administrators from Indiana, Michigan and Wisconsin voted for therm- al pollution standards that limits warming surface water to 30 F. or less within 1000 feet of a discharge pipe. The outcome of this confrontation should be fol- lowed closely by planners as. a precedent may be set regarding thermal standards. Alternative Power Supplies The concern over brown outs, air pollution and nuclear fueled power plants has created renewed interest in looking at possible alternatives or modifications to the existing approach. In this section several of the methods are reviewed. One suggestion is the establishment of a national grid. A transmission system linking the major power stations for the entire country. The net dependable cap- acity of the nation's generating equipment comfortably exceeds the estimated peak demand; thus if the energy could be distributed effectively by a national grid some of the pressure for new facilities could be relieved. Regional grids al- 99 ready exist as do a few interregional grids, however power industry critics feel that utilities are deliberately dragging their feet with regard to further extensions. Also on the horizons of nuclear technology is the breeder reactor. Breeder technology is actually a means of improving the primary fuel situation for the power industry. Theoretically a nuclear power reactor can be built that will cre- ate, via the fission process, more nuclear fuel than it consumes. The Atomic Energy Commission and private industry are involved now in a program that is aimed at developing a practical breeder reactor by 1990. The Dickey-Lincoln School Project, a proposed hydroelectric system located on the Upper St. John River, received considerable study by the U. S. Army Corps of Engineers and a number of other State and Federal agencies during 1966 and 1967. However, since that time requests for funds to proceed with planning of the project have been turned down by the U. S. Congress and no work is being done at this time. The plans called for the construction of two dams. At one, the Dickey Dam near the junction of the St. John and Allagash Rivers, would be eight generating units of 95,000 kw each, totalling 760,000 kw. At the other, the Lincoln School Dam, would be two power facilities rated at 35,000 kw each. The estimated cost for the project would be $230 million. The Passamaquoddy tidal power project, a concept first explored in the 1930's for harnessing the potential energy of rising and falling tides, has been re- newed life recently. Senator Edmund S. Muskie (D. Maine) and other public officials have requested a review of the project in light of present economies and technologies as well as the present environmental demands that enhance the attractiveness of this project. Other tidal power projects are being investigated for the Bay of Fundy be- tween the Canadian provinces of New Brunswick and Nova Scotia. If successful, the possibility of importing surplus electrical power from Canada would take on new meaning. Each of these possibilities just discussed could have a definite im- pact on the shape of Maine's power spectrum in the years ahead. In summary then there are a number of considerations that could have a bearing on the extent to which the Maine Coast will be used for additional elec- trical power generation: * the public's perception of the health and safety factors associated with nuclear and fossil fuel generating plants. * the feasibility of alternate beneficial uses of thermal effluents and other cost-benefits to the State. * the disposition of the Dickey-Lincoln School hydro-electric power proj- ect. * the possibility of a national power grid. * energy exchange arrangements with Canadian electrical power suppliers. * the realization of tidal power as a primary energy source for electrical generators. * technological breakthroughs relative to electrical power production (i.e., fusion, solar energy, etc.). 100 EAEC' AT 1'10 s nl~F CASH FLOW GENERATED FROM AQUACULTURE NEW INDUSTRIES Annual Gross Employment Algae Farm 2.8 M 25 Oyster Farms 5.0 M 85 Lobster Farms 12.0 M 230 Trout Farms 6.0 M 75 TOTAL 25.8 M 415 COMMERCE WITH EXISTING INDUSTRIES Conventional New Income Commerce to Industries Chicken Farms Sell feed 1.1 M Buy manure .3 M Processing Plants Sell fish 6.0 M Buy curry 1.8 M Electric Power Plant Buy hot water 3,75 M Town Taxes 1.4 M 8.9 M 5.45 M CONCLUSION - A BEGINNING Rather than concluding this segment, it is hoped that a beginning will have been made toward a new, positive direction for coastal Maine. It is impossible to be complete in delineation or solution of any one of the component areas. But the orientation here has been to present a scheme for attacking the most serious problems in each area by generally utilizing its problematical aspect, usually its noxious output, as a beneficial requirement for the solution of prob- lems in another area: i.e., to close as many waste-requirement loops as possible. By demonstrating the immediate feasibility of a familiar environmental principle -recycling, as applied in an economic situation, it is possible to preserve and enhance the priceless qualitative aspects of the Maine Coast. The recycling concept can be applied in other instances and should become a very important consideration when weighing future coastal resource planning decisions. The following section of this report will outline some institutional and organ- izational arrangements which will be needed to implement coastal development proposals. 168 Most generating stations are very large by their nature- they are also usually isolated and hence, by today's standards, they tend to be visually obtrusive, One way of diminishing the mass problem would be to build into the ground, or half into the ground, The structure would then become a land form sculpture: built in some old quarry, for instance, it would: - blend into the surrounding landscape - become a major tourist attraction (unique) - by being buried (partially) in solid rock, it would be safer - would make it less vulnerable to natural or man-made at- tack - would not endanger valuable land if it were built in a quarry which has been abandoned - power lines are on tower above trees with only roads for access and maintenance. 167 Golf course 18 hole @ 25,000/hole 450,000 150 A Tennis, handball, etc. 120,000 30 A Multi-Units Motel 350 units @ 12,000/unit 4,200,000 15 A (includes convention complex) Multi-Units 100 units @ 35,000/unit 3,500,000 80 A Housing 250 units @ 45,000/unit 11,250,000 300 A Yacht Basin for 200 boats 1,750,000 10 A 200 boats & repair Open Space 300 A 29,070,000 945 A Land Cost: 945 @ 1000/acre = $945,000 Total Capital Cost, excluding financing: $30,615,000' * includes power and sewer SUBSYSTEM: POWER PLANT (NEW OR EXISTING) BASE LOAD STATION Function/ To generate electrical energy: 1,700,000 kilowatts of electricity Product: and heated water or super-heated steam Raw Materials Large amounts (1,200,000,000 gals) of coolant sea water for re- Needed: actor cooling energy source. Market: Local and possible wholesale electricity for major metropolitan areas (Boston and New York City). Site Criteria: The facility must meet all AEC requirements and possibly ex- ceed some of these requirements. They are: - 3000 ft radius of non-habitation - one mile from major population areas - suitable for large shipping of reactor components - ease of shipping out radioactive gases and solid waste - not located on major seismic belt or lines rock foundations preferred - coolant waters are taken from deep water 40-60' to reduce killing pythoplankton, the beginnings of the food chain. 166 Services: a) Beach: 5 month ocean bathing through heated beach com- plex b) Choice of individual houses, cabins, motel rooms c) Direct service to airport d) Restaurants specializing in seafood, poultry, organic vege- tation e) Ship repair for aquafarmers; charter and rental services f) 18-hole competition golf course Raw Materials: a) Nuclear power for heat and electricity b) Sufficient adjacent lands to reap the benefit of increased land value (thus internalization of profit, and promotion of planned development of outlying areas if owned by few whose interests are not in areas of land speculating). c) Sufficient initial investments to defer excessive interest rates (possible sources of revenue are the power company coupled with a large investment capability of a private entrepreneur and Federal and State assistance). d) Coastal frontage for aesthetic livability. Waste/ a) Human excrement and organic garbage for fertilizer manu- Byproducts: facture, promotion of algae growth and organic farming. b) Inorganic garbage utilized to create a mound for a possible open-air theater or ski area. Site Criteria: Beach area required. Coastal visibility for tourist housing and golf course. Forest and farm land open spaces required. Slope should be greater than 8% and less than 15% with some parts 20% for maximum residential visibility of coast and ocean. Orientation of land to sun - sunrise and sunset. Develop the field/forest edge relationships which will act as natural di- viders for increased privacy and rural environmental effect. Capital Base Facilities Number Avg. Sq. ft. Total Costs Area Bank 1 1000 1,000 Restaurants 4 1500 6,000 Novelties 6 1000 6,000 Drugstore 2 600 1,200 Antique 4 800 3,200 Bookshop 2 800 1,600 Museum 1 1500 1,500 Craft shop 6 400 2,400 Art gallery 4 800 3,200 Town hall/meeting house 1 2500 2,500 286,000 Misc. & maint. @ 10% 28,600 314,600 @ 27 = 8,400,000 60 A 165 Complex building forms and masses should blend naturally with the environment of the area. Major open spaces will de- pend on the man-made building pattern. The shape, size and edge relationships of that pattern will govern its quality. This will reflect and enhance the nature of the institution and its relationship with the community at large and, most important- ly, with each individual user. We are building for ourselves and our future, hence the requirements,, both physical and spiritual, are most important criteria. Size: the facility would grow with the progression in develop- ment of industrial components and their continuing re- search needs. Employees: 10 service, 20 science and technical people. Cost: $400,000 for initial facility which could be part of an existing oceanographic research facility or a new coastal research laboratory for Maine. SUBSYSTEM: SMALL TOWN-CITY COMPLEX (1I ,000 PERMANENT, 20,000 SEASONAL AND CONVENTIONAL) Function: To house in a livable environment the employees and private entrepreneurs associated with the aquaculture-agriculture- electrical system; and to accommodate and promote tourism as a non-pollutant form of industry. ingle 1 irrigation from recycle r-.--~ ~-- ~ j ! ~/~ water mousin . golf (sew0 to waste treatment use I Z ln ocear\ well/ Cd e or 4 ln ograph ng-/ 0P insti- base tennis, heated sea ach aciIiti etc. water & steam 164 Sewage - Algae Plant 10 million gal sewage/day - 200,000 lb algae/day Expenses Capital & operating cost for sewage $ .4 M Capital & operating cost for algae products .7 M Capital & operating cost for algae harvesting .9 M Hot water from power station .5 M Chicken Manure ($10/ton) ,.3 M $2.8 M Income Algae broth fish and oyster feed (23,000 tons/yr @ $60/ton) $ 1.4 M Dried algae chicken feed (13,000 tons/yr @ $100/ton) 1.1 M Organic fertilizer (4,500 tons @ $30/ton) .1 M Recycled water .2 M $ 2.8 M SUBSYSTEM: COASTAL RESEARCH LABORATORY Function/ To supply the research and technical staff needed to sustain Service: the various components within the system. It would serve as a training institute for college and pre-college students inter- ested in ocean-related studies as well as serving as a major ap- plied research facility. Developing this with a major college or university might be desirable. Site Criteria: The facility would be close to the town for services and use of the resort area. One of the major problems with a resort re- sults from lack of year-round use. One of the problems with university housing is that for four months in the summer it is not used intensively. Combining both these conflicts might be to the mutual advantage of both. Proximity to the recreational environment would be an improvement upon the typical insti- tution housing. The units would then have a higher use fac- tor and more attention and money could therefore be allo- cated for such housing. Soil should be suitable for under- ground piping and foundations, with a gravel source in prox- imity. 163 Site Criteria: An area of 150 acres of fairly flat land. Soil suitability is im- portant: should be clay type, not located in flood plain, and prevailing winds away from populated areas. Facility should also be screened with trees, evergreen type, and securely fenced. Cost of Waste Treatment Complex Capital Cost Land: 100 A @ $300/A $ 30,000 Bioligical oxidation towers 900,000 Communitors 100,000 Pumps & lift stations* 350,000 Settling tanks 100,000 Storage & tertiary lagoons 200,000 Ozone injection/recovery 300,000 Maintenance & control bldg 50,000 $2,030,000 Yearly Cost Labor & tech $ 50,000 Repairs 50,000 Depreciation 200,000 Interest 140,000 $ 440,000 / 3,650,000,000 gal/yr Cost per million gallons = 120/Mg * does not include external piping 162 SUBSYSTEM: WASTE TREATMENT COMPLEX Function/ To treat sewage and make it safe for use in algae pond; to Product: purify water Market: Utilized in algae pond and land farming Waste/ Solid organic fertilizer from cleaning of pond bottoms, recy- Byproducts: cling of potable water processing returns recycle water pecial [treatment oxygen 10 2n XA mun7i oxidation - settling injector ~ lagoon , over low owers ponds ponds Process: Communitors are first located at the major collector compon- ents: town, recreation complex, chicken farm/processing plant. The solids are finely ground in the communitor and carried to the multi-stage treatment in an effluent solution. The first stage of the process is an aerated lagoon (a series of suspended perforated pipes which inject air). The secondary treatment is also aerated. The solution then passes to an ozone injector. This will kill most of the pathogenic virus. Ozone will break down into oxygen (a great deal of it escaping into the air), and a collector-compressor device will capture escaping oxygen and compress it, pumping it back into the aeration system. At this point, controls and monitors would analyze the solution's suitability for pumping and mixing with sea water for the algae ponds. 161 Site Criteria: Should be near fishing fleet, waste treatment center and lo- cated near a major transportation line. Soil should be adequate for medium foundations and extensive underground piping. A large building complex with heavy traffic demands should be effectively screened to reduce the impact of its mass. Tree screens can be used to blend parking area with -surrounding areas. Large settling tanks will contrast with the mass of the building. INPUT OUTPUT Fresh Stream Bird/ Produce Ren- Water Fish/ dered Efflu- Capital Em- gal/day lbs/hr Algae lbs lbs/day ent Invest. ploy chicken 500,000 10,000 70,000 245,000 69,000 500,000 41/2 M 300 fish 150,000 10,000 120,000 36,000 84,000 150,000 l/2 M 160 algae unknown 10,000 20,000 20,000 red/ 1/% M 15 steam 650,000 30,000 153,000 61/2 M 475+_ 160 SUBSYSTEM: FOOD PROCESSING PLANT Function/ To prepare poultry and seafood for various markets: Products: a) poultry products b) sea foods: aquaculture offshore catch lobster halibut oyster sardines trout herring pollock cod c) fish and chicken feeds for local purposes as well as outside demands d) algae drying and rendering Market: U.S. and Europe; domestic feeds 'algae algae pools fish, endering poultry feeds curry, etc & lobster poultry ch roceing farm spec al recycle reparation market water K ackaging aqua- utting culture & fish sj fleet waste ettling treatment plant 159 Site Criteria: Ponds would average 1 acre in size and about 1 foot in depth. Flat areas make pond construction easiest but require pump- ing. Slope sites would be more difficult for pond construction, but could make use of gravity for water flow. Ponds should be near salt water and heated water source. Use of low-yield land possible - i.e., land which has been stripped of its timber or of otherwise marginal suitability. Yield: One acre could produce 200,000 lb of algae. 50 acres of algae could feed & produce 1 M lb. oysters. 1000 acres of algae production would produce 200 M lb. of algae. Cost of Algae Ponds and Production Capital Cost Land: 800 A @ $400/A $ 320,000 Construction: 700 A of pools @ $3000/A 2,100,000 Piping & buildings & pumps 1,000,000 $3,420,000 Yearly Cost Maintenance & operation @ $100/A $ 70,000 Interest @ 7% 240,000 Depreciation @ 10 years 342,000 Taxes @ 30/1000 100,000 $ 752,000O Production Cost/Year 200,000 lb/day = 36,000 tons/year COSTS TOTAL COST PER TON Million $ Dry Wet Operation .7 20 20 Heat .3 8 8 Harvesting & Drying (13,000 tons/year) .7 50 Handling & piping to oyster & fish farms (23,000 tons/yr) .2 10 Effluent .6 15 15 93 53 158 SUBSYSTEM: ALGAE PONDS Function/ To provide the best possible environment for the growth of Product algae (unicellular) and algae broth as a primary food source Market: Major protein for a) feeding first stages of lobster larvae, shellfish, oysters, clams, other mollusks b) combining with fish curry and chicken curry in pellet form to feed mature lobster, sea trout, salmon, other fin fish and as poultry feed Waste/ Organic solids settling to bottom would periodically be cleaned Byproducts: out as fertilizer for land farming or land fill. Algae broth would be mostly free of pollutants and after coagulation the algae solution would pass over oyster and shellfish beds as feed. recycle potable to eeds water oxygen & CO2 aeration �recycle , algae broth to shellfish channels Process: 65�F sea water from power plant mixed with waste treatment effluent in a 10 to 1 ratio in algae culture ponds. 157 Annual Cost Fixed Cost: Depreciation $ 4,500 Interest 3,000 Taxes 1,500 $ 9,000 $ 9,000 Operating Cost: Feed $47,000 Labor 10,000 Maintenance & operation 5,000 Heat & electricity 2,000 $63,000 $63,000 Expenses $72,000 Income Broilers $40,000 Eggs 35,000 $75,000 Income $75,000 volume: indicated possible increase in New England market, retaining posi- tive advantage and existing chicken farms - The Maine Poultry Industry, July I970. t overall costs of a contract farm are similar, except that the moneys are di- vided between the farmer and the large-scale producer. 156 Process: Chicken cage farming techniques are well-established. Use deep-pit manure collection, empty 2-3 years. Site Criteria Use of cage farming techniques requires very little acreage for the raising of poultry. Other land needs - garden, fields and area to dry chicken manure (danger of nutrient run-off). Size 10 to 25 acres. Soil should be suitable for buildings and gardens. Within 50 miles of processing plant for delivery and chicken feed. Slope can be up to 10% Development of indoor open space and building masses will constitute major land patterns. The shape, arrangement of open space and buildings will determine quality of the rural environment. Major spaces and farms delineated by visual screens: pines, spruces, etc. Size: 10 - 15 acres - 25,000 birds/farm Volume* and Waste Products Bird Type No. Feed Manure Solids @ 29% Hen: Layers 6,000 100 lb/yr 270 tons 80 tons Broilers 76,000/yr. 8 lbs/9 wks 300 tons 90 tons Average farm size - 25,000 birds for one-man operation Operational Cost** of an Independent Chicken Farm one man - 25,000 birds 6,000 laying hens 19,000 boilers x 4 crops/year Capital Cost Land, buildings and equipment $34,000 Stock 11,000 $45,000 155 Income: 25,000 8-lb baskets of Grade A Tomatoes @ $2.00-$2.50/basket TOTAL INCOME $50,000 to $62,500 profit (labor costs) for 2, $20,400 to $32,900 * taxes ( $500,/year' ** low-cost heat and fertilizer SUBSYSTEM: POULTRY FARMING Function: To raise poultry and poultry products Market: Poultry market is well established. Chicken curry can be ren- dered for chicken and fish feed. Chicken manure is a major nutrient supply for algae. Raw Materials: Farm and chicken feed. 10-acre average Heat ' 'Chicks . Poultry to Methane Processing Wrtaer Plant ~~Water /manure| iStorage Pit 154 temperature and climate conditions. Greenhouses can protect plants from the elements, but would require large amounts of heat. Low-cost heat can be supplied to greenhouses-located in proximity to an electric generating plant. This source of low- cost heat provides greenhouse growers a more competitive situation. (Current farming methods rely on large scale, high technology and product specialization. Adverse climate and ecological conditions are dealt with artificially. Organic farms rely on natural solutions to adverse conditions and are typi- cally smaller in scale with high product diversification. These small-scale farms would obtain low-cost natural fer- tilizer from the various settling plants of the waste treatment plants and metabolic waste settling tanks. The greenhouse structures would be permanent glass greenhouses with heating and watering systems. Harvested goods would be shipped ac- cording to market demands and economies of transportation. Site Criteria: Soil should be suitable for agriculture, permitting light founda- tions and underground piping. Orientation to sun is important. Should be in proximity to power plants (steam) and waste treatment center (fertilizer) within short driving time of major transportation facility. Development of open spaces is a powerful land pattern. The shape, size and edge relationships will govern the quality of these spaces. In operating new space the quality aspects are as important as the farming criteria. In large part, these farms will be occurring in rural areas, making the nature and composition of open spaces and building complexes a most im- portant facet in developing the character of the community. Cost Aspects of a Typical Greenhouse Production: heated to 650� year round 2 crops per year 2 worker tomato greenhouse Typical Cost Aspect of a 1-Acre Greenhouse Tomato Production Farm Expenses: 40,000 sq ft greenhouse @ $4.50/sq ft = 180,000 @ 7% : $12,000 Depreciation for 20 years = 9,000 Expenses, taxes*, fertilizers"* and heat** = 8,000 Labor (see profit, below) TOTAL $29,600 153 SUBSYSTEM: ORGANIC LAND FARMING Function/ To grow wholesome foods year-round without use of chemicals Product: or pesticides. Market: People are becoming more and more concerned about the quality of their food as industry-induced additives are found to be harmful. Recent trends toward eating organic foods (naturally grown, without chemicals or pesticides) indicate 10% growth per month of this market in the last 16 months in the U.S.' Presently, much of the organic food comes from the west and the mid-west. A major limiting factor in growing of these foods in Maine and New England is temperature control and ease and speed of delivery of the product to market. to market fresh water steam or produce: high value/ (recycle) \ heated ground coils weight items flown; others via nor- mal ground trans. organi c fertiliz er crop settling ponds Process:nd small-scale efforts are needed to grow wholesome organic foods. Producing a year-round abundance of these foods haste cause of the * Time Ma gazine a rtic le 152 152 Oyster Channel Farm 10 channels/farm 7 rafts/channel Capital Cost 10 channels 90'x12'x14' @ $3000 $30,000 Pumps @ 5000 5,000 7x10 = 70 rafts x 150, 10,500 @ $1/sq ft 10,500 $45,500 Fixed Cost/Year Interest $ 3,100 Depreciation 2,300 Taxes 1,300 $ 6,700 Operating Cost/Year Fixed $ 6,700 Maintenance 2,000 Algae food 10,500 Heat 4,500 Labor 10,000 Starting larvae 1,000 $34,700 Income 35,000 lb @ $1.00/lb = $35,000 151 Process: Establish a larvae hatchery where conditions are completely controlled. Larvae are raised 14-21 days in heated sea water and then placed in another tank where they will attach them- selves to raft systems or oyster shells on the bottom. From there they are placed in either oyster channels (rafts) or into the estuary (rafts and bottom) where the channels empty into them. Oyster channels are intensive farming units designed to give maximum food exposure and dissolved oxygen to oysters suspended from rafts placed within the channels. Warmed sea water at 65-70" from the algae pools will comprise part of the water supply and constitute the food supply. Water flow could be either gravity or pumped. After passing through the channels the sea water would go into a settling tank where solid metabolic waste would settle out to the bottom. This area would be excellent for raising bait worms -both as a commercial product or for fish food (if production were great enough, it might bring down the market price - thus it could become a food source for aquaculture). The settled metabolic waste would also (properly dried) make good organic fertilizer. The water would then run over a series of baffles to elimi- nate or reduce concentrations of toxic elements. At this point the sea water could either flow into the estuary or be recycled back through the oyster channels. The estuary could provide a less controlled and lower den- sity situation for cultivation of shellfish. The sea water will still be warmer than normal because of water inflow from fish, lob- ster and shellfish farms. The estuary will depend on tidal action for flushing of metabolic waste. Nets will provide pro- tection from possible fish predators. Site Criteria; Oyster channels have to be near algae ponds and near the estuary to facilitate large water volumes. Gravity systems would depend on slope: the estuary would depend on normal protection from coastal storms and waves. The shape and cur- rent would determine the amount of flushing. Use of an estuary necessitates having water frontage, but with proper screening and design, it would not detract from surrounding area. Use of estuary by power boats would have to be closely controlled. 150 SUBSYSTEM: AQUACULTURE / OYSTER FARMING Function/ To facilitate the use of algae; and, to raise commercially mar- Product : ketable oysters. Market: Undeveloped markets in large areas of U.S. (other than middle Atlantic states) and Europe. Waste/ Metabolic waste collected in settling tanks may provide breed- Byproducts: ing grounds for bait worms and a source of organic fertilizer. Processed shells are redistributed in proper locations to pro- vide natural breeding grounds for shellfish. May in time also provide a possible primary food source to other fish farmers. TIME 21 daysl 14-21 days 2-3 years 1 year heated sea wate:r with market algae from algaD pools tray evelop- ntensive oyster ts ing t ~~arvae larvarv atcecontrol channels processin to oyster raft settlin ettling ettling shells tanks E tanks & tanks 4 baffle baffle baffle waste sea water , waste sea (at walte sea e rwater water estuary v~\ IA \ 4 149 INTRODUCTION TO THE RECREATION COMPONENT Recreation is an activity, not an industry. However, the past few decades have fostered a dramatic growth in those industries often linked with recreation. As a result, sometimes these businesses are grouped together and referred to by one of several pseudonyms: leisure time industry, leisure group, vacation travel, recreation services group, and others. We shall refer to all of these in this report as recreation-related industries. These recreation-related industries involve many sectors of Maine's economy, therefore, it is necessary to establish an overall prospective for this study. The following few paragraphs and the accompanying tables summarize those aspects of recreation that are examined in detail in the remainder of the recreation com- ponent and provide an overview. The term recreation very quickly brings to mind the various activities that individuals pursue in their leisure time. The list below contains those activities that relate to the Maine Coast. Next to each activity is a measure that indicates the level of participation with regard to that particular category, also the per- centage of the total State activity that is attributable to the coastal zone. ESTIMATED PERCENT OF RECREATIONAL ACTIVITY LEVEL IN 1970 STATE TOTAL Swimming, Picnicking, Hiking 3,030,000 Day Use of State Parks visitor-days 91 Motor Boating & Sailing Motor boats registered 16,000 boats 36 Sight-Seeing Day use of State Memorials 244,000 visitor-days 94 Peak daily highway traffic 140,000 vehicles 60 Nature-Study (No available indicators) Outdoor Sports Registered guides 185 persons 48 Registered deer kill 17,000' deer 41 Ski area attendance 53,000 skier-days 11 Due to this recreational activity, many companies have been established to provide the products and services demanded by the recreationalists. Many of the firms can trace all of their revenue to recreational activities. Below are the major types of business in recreation-related industries and their gross revenues for 1967. In addition, the percentage that the revenues represent of the State total which can be attributed to coastal firms is shown. 103 PERCENT OF BUSINESS DESCRIPTION REVENUE: 1967 STATE TOTAL All Recreation-Related Firms: $262.4 million 62 Hotel & Motels 42.0 million 84 Boatbuilding & Repair 7.6 million 100 Amusements 13.2 million 70 Eating & Drinking Places 50.7 million 68 Tourist-Oriented Stores 148.9 million 53 Of particular importance are the indicators that give insight into the overall economic impact recreation has on the coastal zone. These include the number of jobs provided by recreation-related industries, level of wages received, invest- ment in real property and others. Below is a summary of this information includ- ing percentage breakdowns for each variable. The data represents estimates for' the year 1970. Recreation-Related Industries % of all % of Statewide Amount on Coastal Recreation-Related Coast Industries Industries Employment 21,000 persons 9 77 Year-round 13,000 persons 8 72 Summer peak 8,000 persons 5 90 Payrolls $27 million 3 51 Summer $17 million 2 79 Other seasons $10 million 1 12 Personal Income $75 million 4 69 Retail Trade $48 million 2 67 Services $21 million 1 75 Real Property Valuation $800 million 25 49 Taxes $ 22 million 25 50 The recreation component looks closely at the existing situation in the recrea- tion-related industries. Following that examination is a forecast of how various sectors will behave in the years ahead, and finally a discussion of the planning implications that recreation places on Maine's coastal zone. 104 THE EXISTING SITUATION IN THE RECREATION-RELATED INDUSTRIES General Economic Measures The Maine coastline is one of the nation's greatest natural resources. The general outline of the coast is only 228 miles in length, however, when the shore along all bays, estuaries, and the 1,149 islands of 10 acres or more is measured, the coastline totals 3,500 miles. The 139 coastal towns contain 13% of the State's entire area and 45% of its current population. One half of the 1970 coastal popu- lation of 444,000 persons is concentrated in towns within the two southwestern counties. Although the total population of the coast has increased only 2% since 1960, fifteen coastal towns have gained over 25% and seventy-nine coastal towns rose from 0% to 25%. Forty-five communities (including most of the large indus- trial cities) lost population. Employment along the coast totals approximately 150,000 persons of which about 13,000 permanent jobs and an additional 8,003 summer jobs are in recrea- tion-related industries. For the purposes of this study recreation-related indus- tries include: commercial lodgings, public and private campgrounds, commercial amusements, eating and drinking places, stores selling to tourists, and transporta- tion carriers. Payrolls in the coastal towns during 1967 totalled $616 million, which was 57% of the State total. The recreation-related industry payrolls ac- counted for about $27 million of the coastal total. An additional $23 million was earned by proprietors and their families from these enterprises. Average wages in the State's recreation-related industries in 1969 amounted to about $1,000 less than the average of $5,688 for all industries. Total personal income of employees and proprietors in the recreation-related industries during 1969 approximated $108 million throughout the State, or about 5% of the total for all industries. It is estimated that the recreation-related industries of the coastal counties generated about $75 million in personal income, only part of which came from out-of-state tourists. TABLE 3-1 ESTIMATED PERSONAL INCOME DERIVED FROM RECREATION- RELATED INDUSTRIES IN MAINE, 1969 (Millions of Dollars) Source of Income Total Retail Trade (') Services (2) State Total: 108 72 36 Wages & Salaries 53 32 21 Proprietors' Income 55 40 15 Coastal Economic Areas: 75 48 27 Wages & Salaries 40 25 16 Proprietors' Income 35 23 11 (1) Gasoline service stations, eating & drinking places, misc. stores (2) Motels and hotels, commercial amusements and recreation 105 Although income generated in the recreation-related industries has secondary effects on other industries which either sell to them or to persons employed by them, the lack of data on these relationships renders hazardous the employment of such multipliers developed for other states. More precise measures of employ- ment and income due to tourism are needed, particularly for individual towns. Real property valuations in the coastal towns rose 57% from 1960 to 1970, when the total amounted to $3.2 billion (at 100% of estimated market value). The greatest relative increases occurred in the prime tourist area. The valuation of recreation property along the coast comprised about 20% of the total property valuation in that area in 1959. Local property taxes of $89 million were collected in 1970 in those towns of which perhaps $22 million was derived from recreation property. Coastal Homes - Permanent and Seasonal The number of homes utilized as permanent residences in the coastal towns rose from 137,000 units in 1960 to 146,000 in 1970 - an increase of 6.3%.1 The largest relative rises occurred in Lincoln, York and Cumberland Counties, while Washington and Penobscot Counties experienced declines. The coastal towns now contain 23,000 seasonal housing units which comprise 39% of the statewide total.2 A direct comparison between the number of season- al homes in these towns in 1960 and 1970 is not available; however, it is estimated that seasonal homes declined by 3.1%.3 A substantial drop took place in York County, particularly in the resort areas of Old Orchard Beach, Wells, and York. We expect that these decreases resulted from the conversion of seasonal homes to year-round use. Substantial increases in seasonal units took place in Hancock and Washington Counties, with smaller rises in Lincoln and Knox. Of the 139 coastal towns, 66 sustained losses in the number of seasonal homes, 55 had increases of between 0-49%, and 18 experienced gains of 50% or more. Seasonal homes in the coastal towns now comprise a somewhat smaller share (13.1%) of all housing units in that area than do the seasonal units in the inland towns (16.8%). However, seasonal dwellings comprise over 50% of all housing units in 16 towns, 25%-50% in 36 towns, and lesser shares in the remaining 87 municipalities. Lincoln and Hancock Counties have the greatest number of com- munities with large shares of seasonal homes. (Figure 3-1 indicates the towns that were above and below the 25% level). The estimated median value of year-round homes in the coastal towns rose 63% (from $9,200. to $15,000.) during the last decade.4 The highest values in 1970 were recorded in Cumberland, York, and Kennebec Counties, however, the greatest relative increases took place in Hancock, Lincoln, Sagadahoc, Knox and Waldo Counties. With regard to seasonal homes in the coastal towns valuation data has not been compiled. Some insight is provided by a survey conducted by the Maine Department of Economic Development dating back to 1959.3 That study revealed that the estimated market value of all seasonal residences in the coastal towns was $102 million or 63% of the statewide total for seasonal homes at that time. The same study shows Hancock, York, Lincoln, Cumberland, and Knox Counties has the highest total valuations of seasonal homes. 106 r-:7 (~~~~~~~~~~~~~ M AINE COASTAL ZONE A NG 0 1 1 C AUGUSTA0 f igure 3-1 SEASONAL HOUSING IN THE COASTAL ZONE PORTLN0 pe rcent of all housing units atlanti 0 cOc a n 0-24M i2 5 S TATE OF MAINE/ STATE PLANNING OFFICE EXECUTIVE DEPARTEIEfJT AG 'I~~~~JA RON I4TE Ariz -,, ~ ~ ~ COKA IL ~~~~SAN """cam Commercial Lodging In 1967 there were 743 commercial lodging places (hotels, motels, tourist courts, camps) with a capacity of almost 31,000 rooms in the coastal towns.6 This capacity, which constitutes 36% of the State's total is concentrated largely (75%) in York, Cumberland, and Hancock Counties. Eight towns (five in York County, plus Portland, Augusta, and Bar Harbor) have over 1,030 rooms each, with a total capacity of 19,000. In 1959, commercial lodgings on the coast had an estimated market value of $47 million.- A new survey of both capacity and valuation of commercial lodgings is needed. Approximately 84% of Maine's hotel-motel business, as measured by payrolls and receipts, is located in the coastal counties." (The data does not reflect the proportion of these county totals that is allocable to the 139 coastal towns). Annual payrolls, which amounted to $11.6 million in 1967 in the coastal counties, provide an important measure of the economic importance of the lodging indus- try. A substantial portion or receipts or transient rentals is paid to out-of-state suppliers making them less reliable as indicators. However, taxable transient rentals, which totaled $27 million in the coastal counties during 1969, are grow- ing faster in Penobscot, Kennebec, and Sagadahoc Counties. Estimates prepared by the Public Affairs Research Center for the Maine Park and Recreation Commission indicate that commercial lodging places pro- vided about 2.4 million visitor days' occupancy to patrons in the coastal counties in 1968.9 The leading counties were Cumberland, Penobscot, and York. Nearly one-half (45%) of the estimated visitor-days occurred during the summer months of July and August, 35% in the spring and fall, and 21% during winter. In York, Lincoln, and Hancock Counties more than 50% of the annual visitor-days took place during the two summer months. The inland counties experienced a more even distribution throughout the year. Assuming that each hotel-motel occupant spends twenty dollars per day, the total receipts for the entire State is calculated to have been $48 million for 1968. A survey of hotel-motel occupancy, receipts, and payrolls by town is needed to provide a more accurate picture of the econom- ic importance and location of tourism in Maine. It appears likely that tourism will expand roughly in proportion to expected increases in the northeast "origin population base", as discussed in a later section."' Turning now to look at the seasonal residents and some of their spending habits. Information in this area was obtained from the Northern New England Vacation Home Study - 1966 published by the Bureau of Outdoor Recreation of the U. S. Department of the Interior. The investigation indicated that the average number of seasonal dwelling occupants in Maine was 4.2 persons, who used their dwelling an average of 255 visitors days (60.7 days per person, mostly in the summer), and who spent an annual average of $1,873. per household. The latter figure includes $777. for local expenditures (groceries, meals, transportation, etc.), $193. for local real estate taxes, $484. for household maintenance, $156. for major sports equipment, $125. for major household equipment, and $140. for regional travel and purchases. Applying these figures to the 23,461 seasonal homes on the Maine coast, we estimate that Maine's seasonal homes are used by about 100,000 persons who spend 6 million visitor-days and $44 million per year. (Comparable estimates for the entire State are 250,000 seasonal residents who spend 16 million visitor-days and $113 million per year). 109 The table below indicates the percentage participation in the various forms of outdoor recreation that were sought by vacation household members in Maine as determined by the study. OUTDOOR RECREATION Vacation household members Golf 18% Horseback riding 13% Bicycling 10% Tennis 7% Water Activities: Swimming 56% Motor Boating 53% Fishing 50% Water Skiing 23% Sailing 17% Canoeing 13% Camping and the Coast Although the number of campsites available at Maine's coastal state and na- tional parks grew 24% during the last decade, usage of those facilities increased 118%.11 Over one-half (312,003 camper-days) of statewide public camping now occurs along the coastline. Two-thirds of the coastal usage takes place in Acadia National Park, with the remaining one-third concentrated primarily at Cahden Hills, Cobscook Bay, and Lamoine State Parks. Campers at coastal parks spent an estimated $1.5 million during 1969. According to the 1969 Maine State Park Camper Survey undertaken by the State Park and Recreation Commission. 90% of all campers at state parks that year were residents of the northeastern United States and eastern Canada. (26% came from Maine, 33% from other New England states, 22% from the Middle Atlantic states, and 8% from Canada). In 1967 the coastal area possessed 471 private campgrounds (including trailer camps, recreational camps, tenting areas, and boys' and girls' camps) that were licensed by the Maine Department of Health and Welfare.l2 Approximately 38% of the capacity of the trailer camps, recreation camps, and tenting areas, (which totalled over 8,900 sites or cabins), was located in only one county - York.l3 Other leading counties were Hancock, Sagadahoc, and Lincoln. While the coast- al counties contained only 38% of total statewide camps of this type, 75% of the 26,000 person capacity of boys' and girls' camps was located in these areas. If these campers spent the same amount per day as those at public parks the total dollars spent in 1967 would have been $10.4 million. Estimates of occupancy of private campgrounds in 1968 were made by PARC from the data cited above.l4 These estimates reveal that nearly one-half of the statewide total occurred within the coastal counties, and that three-fourths of the use of private campgrounds took place in the western portion (York through Lincoln Counties). We estimate private campgrounds occupancy will grow at a rate similar to that of public campgrounds occupancy. 110 2~~~~~~~~ -WARM~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~A 4 ~ ~ ~ ~~~~~~~x 2.~~~al %T1~~Af5~fi~fl EA~n Looking at the activities pursued by state park campers once they arrive at the parks, the 1969 Maine State Park Camper Survey mentioned previously indi- cates that 68% participated in swimming, 43% in hiking, 40% in picnicking, 40% in touring, 27% in boating, 24% in fishing, 21% in nature stitdy, 4% in water skiing, and 7% in other activities. Sight-seeing One indicator of activity in this category is the volume of highway traffic passing selected stations throughout the State. The State Highway Department's automatic recorder stations in the coastal towns showed a 24%;4 increase in annual traffic between 1961 and 1969, and a 51% rise during the peak months (usually August or July).'7 About one-half of 'the recorded traffic occured in York and Cumberland Counties. The greatest incidence of tourism occurs in the coastal towns of Lincoln and York Counties, where traffic in the peak month is almost twice the respective annual averages. Hancock County's peak is 61%/o above its annual average and Cumberland's is 27% above, while Penobscot and Kennebec have lesser differences. The State Highway Department's study of U.S. Route 1 traffic during the summer of 1965 revealed that at eight selected stations on the Maine coast, about 40% of the out-of-state origins or destinations were other New England states, 22% were Middle Atlantic states, 12% all other states, and 26% were in Canada. However, the easternmost stations in Washington County had a much higher pro- portion of traffic with Canada than did the southwestern stations, which had a greater share with the northeastern states. Attendance at the various state forts and memorials is another important indi- cator of the volume of sight-seeing. The number of visitor-days at these facilities on the Maine coast rose 135%, or from 104,000 in 1960 to 244,000 in 1970.1 The latter figure represented 94% of the statewide total. The greatest concentration of visitors occurs at forts and memorials in Waldo, Lincoln, and York Counties. Fort Knox and Fort McClary have by far the greatest attendance. Four additional facilities have been acquired during the last year, but are not yet open to the public. Other attractions are the numerous historic landmarks, of which 83% are located on the coast. Of the 159 coastal landmarks (mostly homes or public buildings) designated or recommended by the State Advisory Committee, the largest numbers are in Lincoln, Cumberland, and York Counties." Some of the landmarks, as well as additional structures, are open to the pub- lic as museums.20 The greatest concentration of museums is in York, Cumberland, Lincoln, and Knox Counties. 112 i k \ K'\ \AY\ \\ K - - M - N / N 7 7N. I N PARTICIPATION ACTIVITIES ASSOCIATED WITH MAINE RECREATION This section presents an overview of principle activities that individuals pur- sue in their leisure time as they relate to the Maine coast. Many of the activities are directly related to the water, however, several utilize the natural setting of undeveloped areas. Swimming, Picnicking & Hiking Statistics pertaining to the category of swimming, picnicking and hiking are not published, however, state and national parks provide many of the facilities required of this activity. The statistics relating to state and national parks can be considered a reasonable indicator of the level of participation in this activity and are presented here. The parks along the Maine coast have a total of 41,000 acres and 2,400 picnic sites or parking spaces. Day use of these facilities rose 126%, or from 1.7 million visitor days in 1960 to 3.7 million in 1970." The latter figure represents 19% of the state total. Three-fourths of all day use of the coastal parks takes place at Acadia National Park, which is followed in importance by Reid, Camden Hills, Crescent Beach, Two Lights, Moose Point, Popham Beach, and Quoddy Head State Parks. Attendance at all of these parks has grown tremendously, but is now being slowed at several of the older facilities by lack of capacity. Boating Although boating appears to have increased considerably in both coastal and inland waters, there are few figures to document-this increase. The registration of motorboats of more than 10 horsepower has risen from 36,431 in 1964 to 44,249 in 1970 throughout Maine. The State Bureau of Watercraft Registration and Safety has estimated that 36% (approximately 16,000) of these craft are used principally in coastal waters. Registration is not required of sailboats or motor- boats with less than 10 horsepower. There are 440 boating facilities of four specific types open to yachtsmen and fishermen along the Maine coast.'6 These include 197 piers, 31 boat and yacht clubs, 96 boat yards and marinas, and 116 boat launching ramps. The bulk of these facilities is located in Hancock, Cumberland, Knox, and Lincoln Counties, although York, Washington, and Sagadahoc Counties also have sizable numbers. Nature Study Much of the activity takes place in the state and national parks, as well as in Federal and State wildlife refuges and private nature conservation areas. The two national wildlife refuges on the coast are Moosehorn, in Washington County, and the newly created Rachel Carson seashore area in York and Cumberland Counties. In addition to the 7,700 acres in Federal lands, 8,060 acres are main- tained as game management areas and small marshes (leased areas) by the State Department of Inland Fisheries and Game.2' These State areas are open to the public for hunting, fishing, and boating, as well as nature study. The greatest acreages are located in Washington, Hancock, Sagadahoc, Cumberland, and York Counties. 114 Several private conservation groups, principally the Audubon Societies and the Nature Conservancy, also own and maintain areas for nature study and out- door recreation for their own members, with limited access to the public. Of the 4,500 acres in such private conservation areas on the Maine coast, the largest con- centration occurs in Lincoln, Hancock, Sagadahoc, and Cumberland Counties.22 Fishing and Hunting Fishing and hunting are among the most extensive outdoor sports taking place along the Maine coast, One indication of their popularity is the number of registered guides who lead parties engaging in fishing, deer and bear hunting, waterfowl and upland bird hunting, Atlantic salmon fishing, and white water canoeing.23 Atlantic salmon fishing is concentrated on the Dennys, Machias, and Narraguagus Rivers in Washington County which are stocked by the Atlantic Sea Run Salmon Commission. The future growth of salmon in these rivers, as well as the Penobscot and others, is dependent primarily on the reduction of pollutants which kill the fingerlings. The availability of 15 species of saltwater game fish in Maine's numerous streams and harbors has been tabulated by the State Depart- ment of Sea and Shore Fisheries.24 An indication of the volume of hunting near the Maine coast is the tabula- tion of game kill prepared annually by the State Department of Inland Fisheries and Game. Two-thirds of all deer killed in the coastal counties were shot in York, Washington, Hancock, and Waldo in 1968.25 The highest average kill of par- tridge, ducks, woodcock, bear, fox and bobcat per successful hunter took place in Hancock and Washington Counties. We expect however that most of these ani- mals, except for waterfowl, probably were shot in upland areas rather than along the coast. 115 r 4 4 2 q4 4ff) 4 p. 4 4444 44 4 I, ______________ 24<, : .4 COMMERCIAL ASPECTS OF RECREATION This section discusses spectator sporting events and amusements in addition to retail sales by restaurants, gasoline stations, stores, and the use of public trans- portation. The 1967 Census of Business indicates that there were 39 motion picture and 308 other amusement establishments (bands and orchestras, theaters, bowling alleys, dance halls, sports clubs, amusement parks, fairs, carnivals, scenic railroads and coin-operated amusement devices) along the Maine coast. The Census esti- mated that establishments in the coastal counties had receipts of $13.2 million and payrolls of $3.5 million. Receipts and payrolls for the coastal counties were more than 70% of respective statewide totals for that year.2 Over one-half of the coastal amusement business was concentrated in the two southwestern counties of Cumberland and York. Horse racing on the coast takes place at Scarboro Downs in Scarborough. In addition, harness races are held there and at fairgrounds in Cumberland, Tops- ham, and Bangor. Automobile racing also occurs at the Beech Ridge, Wiscasset, and Winterport Speedways. Winter Sports Snow skiing, ice skating, and snowmobiling are the principal outdoor sports taking place along the coast during the winter months. The only available at- tendance figures are for skiing, which totalled about 53,000 skier-days (1969-1970) at the four coastal ski-areas - Big A in York, Sky-Hy in Topsham, the Camden Snow Bowl in Camden, and Snow Mountain in Winterport. Skiing is rising rapid- ly in popularity, the statewide increase exceeding 700% since 1960. Snowmobile races are held at the Big Oval in Brunswick. There are no organized iceboat races along the coastline. Retail Sales Annual taxable sales for all products rose 73% in the coastal counties between 1960 and 1969.27 During the summer tourist season (May-September), total tax- able sales in this area increased slightly more - 76%. The greatest rise took place in Hancock County (96%) and the lowest in Washington (32%). Summer sales generally represent about one-half of the annual total in 1969, although York and Hancock Counties experienced somewhat greater shares (59% and 55%, respec- tively) during the tourist season. The 1959 Recreation Property Inventory of the Maine Department of Eco- nomic Development revealed that all restaurants, recreational shops and amuse- ments had a total market value of $36 million that year. Of that amount $19 million was attributable to property in the coastal towns, three-fourths of which was within the Counties of York, Cumberland, and Hancock. This property in- ventory should be updated as a part of the ongoing coastal planning effort to identify market value trends. Retail sales of recreation-related goods (gasoline, food and drink, antiques, sporting goods, etc.) increased 31% in the coastal area between 1958 and 1967. Sales of these items totalled $200 million for the latter year.28 The greatest in- 117 ~~~~~~~AM:ag A~~~~~~~DR k9 T ;, MY,~~~~~~~~~~~~~~~~~ ,Aetna- creases occurred in York, Knox, Kennebec, and Penobscot Counties; however, two-thirds of all 1967 sales took place in Cumberland, York and Penobscot. The coastal area accounted for 57% of statewide sales of recreation-related products during that year. There were 742 restaurants and other eating and drinking places within the coastal area in 1967. These establishments had a capacity of 75,434 seats and sales of about $51 million, 55% of which took place in two counties - York and Cumberland.29 This level of sales generated by the coastal establishments repre- sented two-thirds of statewide sales during 1967. The increase in sales for the coastal establishments was 87% between 1958 and 1967; the greatest relative rises occurred in Knox, Hancock, Cumberland, Penobscot, and Lincoln Counties. Transportation Between 1962 and 1969, the number of air carrier passengers rose 122% at Portland, Augusta, Rockland, Bar Harbor and Bangor combined. Since 1969, trunk carrier summer service at Rockland and Bar Harbor (serviced by Northeast Airlines) has been supplanted by Downeast Airlines and Executive Airlines, respectively. Northeast continues to serve Portland and Bangor, both cities hav- ing experienced substantial air traffic increases in recent years. Water passenger carrier traffic along the Maine coast has increased steadily since 1960. During the past decade this category saw its summer business grow twice as fast as it did in the off-season.O The greatest increase in summer traffic took place in Casco Bay where the Casco Bay Line Company operates special excursions for tourists. In addition, service is offered to the Casco Bay Island for the benefit of seasonal and year round residents. About one-half of the annual traffic in Casco Bay now occurs between June and September. Over 60% of the Penobscot Bay passenger traffic handled by the State Ferries takes place during the summer, while 90% of the passengers on the Bar Harbor-Yarmouth service of the Canadian National Railway travel during those months, The Lion Ferry con- necting Portland and Yarmouth, Nova Scotia, transported more passengers and automobiles during 1970 than the Bar Harbor ferry. Eastern Greyhound Lines operates two daily round-trips by bus between Boston and Bar Harbor, and three daily round-trips between Boston and Calais during the summer months. Published figures on the number of passengers carried by the buses are not available. Marine Facilities The Census of Maine Manufacturers reports that employment in boat build- ing and repairing establishments, most of which are located on the Maine coast, rose from 439 in 1960 to 613 in 1969. During the same period, the value of prod- uct at these establishments doubled - from $3.8 million to $7.6 million, The coastal counties also lay claim to 195 marinas; 112 sell fuel, 56 have stor- age facilities, 63 carry out repairs, and 44 sell marine hardware.81 These marinas also have more than 1,700 moorings and additional anchorages. The largest con- centration of marinas is in Knox, Hancock, Lincoln, York, and Cumberland Counties. 119 FORECASTS OF RECREATION DEMANDS Coastal planning relies on an ability to foresee future needs and demands. Obviously this is an area of great uncertainty, however, certain trends are evident and can prove useful for planning purposes. In this section projections of recrea- tional demands are reviewed by examining several indicators that measure the variables of interest. Camper Attendance A model developed by the Public Affairs Research Center for the State Park and Recreation Commission related past camper attendance at state parks to socio-economic variables and projected future attendance at state parks based on assumed future changes in the variables. The base population for the study was basically that of the Northeast region. Figure 3-2 indicates the area utilized. The population of this area is labelled the "origin population base" for future tourism in Maine. Other base information includes: auto registrations, leisure time, and personal income. For example, the population of the northeastern states and the eastern provinces is projected to increase from 64 million in 1970 to 71 million in 1980 and 79 million in 1990. A large portion of the increase will take place in the Boston-Washington megalopolis. This population belt is creeping northward from Boston extending now into southern New Hampshire. It is likely that south- western Maine will be affected during the next decade, consequently Maine's population is projected to grow to 1.1 million by 1980 and 1.2 million by 1990. The model also distributed future attendance to specific parks (both existing and projected) based on their relative distance from State border crossings and major urban centers. (Attendance at Acadia and Baxter Parks was projected in- dependently.) The model predicts that summer camping at the coastal parks will rise about 130-140% by 1980 and 250-260% by 1990, as shown in Table 3-2. This assumes that sufficient facilities will be provided, particularly at Acadia, which now has a policy of building no additional campsites. If not enough public camp- sites are provided, the incremental attendance will resort to private campgrounds, as is presently taking place. 120 ORIGIN POPULATION BASE FOR RECREATION IN MAINE FIG. 3-2 IZCAMPING USE -DAY USE quebec__ ontarib new york Penn I-.~~~~~~~~~ O ~ ~ ~ ~ ~ ~ ~ ~~~~~TABLE 3-2 0 U (Thousands of Person-Days) CDH 1969 1980 1990 CD< o county Actual No Change Park Added No Change Park Added -. ~ ~~~~ State Total: 526 1,007 1,016 1,422 1,432 0 0 Coastal Parks: 282 656 672 994102 tr- C D ~ York _ CD ~~Cumberland __ H ~~~~ Sagadahoc__ 0 ~~~ H ~~ Kennebec __ H~ ~ ~~t CD Lincoln __ Z Knox 45 44 41 55 50 I-D 5 CD ~ Waldo 3 17 15 21 18 - t�D r~ 511 Penobscot 26* 32* CDP Z ~~Hancock 225 565 561 881 877 tZ O . - Washington 9 30 29 37 35 Inland Parks"'- 244 351 344 428 420 CD~~~~~ Brewer Lake in Orrington 2 *Including those in counties listed above CD CD Source: PARC, Demand Analysis of State Park Utilization and Other Outdoor Recreation Activities in Maine CD 0 0 coo ~~~~~~~~~~~~~~~~~~~~~< ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ IU-I~l AK-~~~~~~~~~~~~~~ TABLE 3-3 ESTIMATED VISITOR-DAYS AND EXPENDITURES BY TOURISTS ON MAINE COAST, 1970-2000 Millions of Visitor-Days Millions of Dollars Type of Lodging 1970 1980 1990 2000 1970 1980 1990 2000 All Lodgings: 10.8 20.2 28.9 37.7 104 200 292 376 Summer residences 6.0 9.0 12.0 15.0 44 60 80 100 Hotels and motels 2.4 5.6 8.5 11.5 48 112 170 220 Public campgrounds 0.3 0.7 1.0 1.2 2 4 5 6 Private campgrounds 2.1 4.9 7.4 10.0 10 25 37 50 This data has been summarized on the following graphs. Figure 3-4 indicates the projected number of tourist visits along the Maine coast and Figure 3-5 shows the projected expenditures that tourists will make in the coastal zone. Seasonal Homes An indication of the activity relating to seasonal homes can be found by mak- ing a judgment about the number of this type home that will be built in the future. On the assumptions that the number of seasonal units on the coast will rise to 30,000 by 1980 and 40,000 by 1990, and that the number of persons per household will drop to 4.0 and they will spend an average of 300 visitor-days (with more time in the spring and fall) and $2,000. annually per household, then there will be about 120,000 seasonal residents who spend 9 million visitor-days and $60 million per year in 1980. Extending this trend to 1990 would mean the figures will be 160,000 seasonal residents who spend $12 million per year by that time. The above figures appear reasonable, although there is at present no basis on which to project the number of seasonal homes, A thorough land-use study (particularly of vacant land) would be essential to provide part of the necessary information, 124 SUMMER DAY USE & CAMPING at -State & National Parks on the Maine Coast FIGURE 3-3 7 t I 1950 ao '7 0 so ~~~~~90 12 TOURIST VISITS ON MAINE COAST FIGURE 3-4 40 o I 30 = _ TOUR ISSUMMER RESIDENTS 20 HOTEL-MOTEL OCC. |'iiiiiirfiilhiniI 1 11 i li X CAMPERS 1970 80 90 2000 TOURIST EXPENDITURES ON MAINE COAST FIGURE 3-5 400 ~~3005~ I_~ ~~-~~-rnhiiiiii SUMMER RESIDENTS o I U-er 200 I HOTEL-MOTEL 0CC. 100 ------_--- 7rm mffjlff]ff CAMPERS 1970 80 90 2000 126 PLANNING IMPLICATIONS OF THE RECREATION STUDY At this stage of the investigation of the coastline, few policy generalizations regarding recreation are possible. One that can be made now, however, is that Maine's coast can have increased economic development (including tourism and other carefully selected industries) without destroying its visual charm, but only if the State and: towns act quickly enough to establish controls sufficiently to ration carefully the development of presently vacant land. A corollary generalization that can be added is that more stringent land-use controls must be instituted if tourism is to flourish. It is doubtful if increasing numbers of tourists will want to come to Maine if the coastline becomes an urban slum, or if public access to shore and lakes is so limited or congested that enjoyment of the area's remaining attractions becomes difficult. Examples of recreational slums abound already in York County, as well as in lower New Eng- land, Long Island and New Jersey. Before further generalization regarding potential conflicts in land use can be made, specific studies would be needed. For example, detailed analysis of rela- tive economic and esthetic benefits of industrial versus recreational or commercial development of Sears Island, Trenton, or Machias should be undertaken before approval is granted for specific projects at those locations. Likewise, studies of the economic and environmental effects of possible improvem'ents of U. S, Route 1 or a new East-West Expressway should be undertaken before, the decision is made to build, and, if so, where. However, there are several fundtional areas in which planning implications have been highlighted by this study. These will be discussed under individual subheadings in the following paragraphs. The recreation-related industries are important to overall planning efforts along the coast because so much coastal activity is linked to this sector. Related revenues are estimated to be over 60% of the statewide total of about $300 mil- lion. Employment and personal income that are attributable to coastal recrea- tion-related industries approximate 75% of the statewide total Projections for the number of visitors we can expect in the future and their expenditures indicate that demands will double in 25 years. The fact that recreation does play an im- portant role in our economy must be weighed in the decision-making process. The Promotion of Tourism One question for consideration relates to whether out-of-state tourists should be encouraged or discouraged from coming to Maine. There are organized move- ments in at least three states - Vermont, New Hampshire and Oregon - to dis- courage either the establishment of more summer residences or a great influx of transient tourists. Advocates of this course would oppose the addition of express- ways and extension of roads into wildlands, the proliferation of billboards and strip commercial developments along highways, and the preempting of shorefront property by wealthy outsiders. Opposed to this point of view are those who would attempt to strengthen the state's weak economy (in respect to wages and lack of diversification) by en- couraging tourism, particularly of transients. For example, farmers or others own- ing attractive rural property might be able to develop various facilities for tour- 127 ists which cannot be provided by state parks. (The U. S. Department of Agricul- ture reports that a sample of farmers in New England invested the following average amounts in various recreational enterprises during 1961: $21,000. for fish bait sales, boat rental and guide service; $35,000. for vacation farms; $12,000. for pony rides; $28,000. for hunting and fishing equipment; $34,000 for picnicking and swimming facilities; $87,000. for riding schools; $133,000. for golf courses and bowling alleys; $250,000. for summer camps; and $322,000. for resort and amuse- ment centers). Public Campgrounds and Beaches The demand for recreational facilities is expected to accelerate in the years to come. In the past, little has been done in the way of setting standards, such as the most desirable number of persons per acre, for use of recreational facilities. Since choice recreational land is limited, attention must be given to finding methods of preserving what we have and yet, at the same time, allowing citizens to enjoy the recreational aspects of the coast; an enjoyment to which they un- questionably have a right. A report prepared by the Public Affairs Research Center for the State Park and Recreation Commission entitled Supply of Outdoor Recreation Facilities in Maine contains a chapter on facility user standards. There is a discussion of the functions of state, regional, and municipal parks, as well as desirable space stand- ards, e.g., park acres per 1,000 population or percent of total area in parks, as modified by natural characteristics. Density standards also were tabulated for selected outdoor recreation activities (swimming, camping, picnicking, playing games on open fields or playgrounds, hiking, nature study, horseback riding, boat- ing, canoeing, snow-skiing, snowmobiling, and ice skating) in which the State has a particular interest. In addition, certain policy questions concerning the acquisi- tion and development of state parks were provided: 1. Should state parks and their facilities for camping and day use be developed primarily for state residents or also for out-of-state tourists? 2. How should state park development be related to the establishment of similar facilities by the private sector? 3. Should new state parks be established generally near urban centers, or in remote areas with outstanding natural characteristics? Subsidiary considera- tions include the relative travel time for prospective users and comparative cost of acquisition of land at different locations. 4. Should intensively used areas of state parks be rotated and rejuvinated pe- riodically? For example, campsites might be rotated every five years, and entire campgrounds or picnic areas every twenty years, in order to renew deteriorating site conditions. 5. Could camps in cut-over timber lands be utilized for public camping use? 6. Should over-used beaches and adjacent areas of state parks and privately- owned land such as Old Orchard Beach be rotated or redeveloped? 7. Should uniform standards for construction and maintenance of state-owned camping and day use facilities be established for all agencies, i.e., Park and 128 Recreation Commission, Baxter Park Authority, Forest Service, Inland Fish & Game Department, and the Highway Commission? Should one agency build and operate all such facilities? 8. Should uniform site-location standards regarding water supply, sewerage, drainage, etc., be established for all state parks in conformance with En- vironmental Improvement Commission guidelines? 9. Should the State expand technical and financial assistance to municipalities for outdoor recreation facility planning and operation? Should regional parks be created? 10. Should certain recreational activities be limited to particular state parks? Finding answers to these questions should form the basis for an expanded study of Tourism & Recreation in Maine. Also, the Maine State Planning Office is currently involved in a natural areas inventory study designed to identify specific areas by their important aesthetic and other recreational aspects as well as indicate ways of assuring their quality is preserved. This study due for com- pletion in November, 1971, will form the basis for further acquisition of recrea- tional areas along the Maine coast. Improving Controls for Recreational Resources Part Five of this report is devoted to methods of implementing coastal poli- cies; however, controls and new institutional arrangements that would relate directly to recreation have been proposed and will be reviewed here. The Federal Commission on Marine Science, Engineering and Resources, in its 1969 report, Our Nation and the Sea, recommended that each seacoast state be empowered to establish a Coastal Zone Authority. The following powers would be available to each Authority: 1. Planning - Conducting necessary studies for comprehensive coastal plan- ning; 2. Regulation - Establishing zoning and granting easements or permits to en- sure conformance with the land use plan; 3. Acquisition - By eminent domain or negotiation; and, 4. Development - Construction of beaches, marinas, and other facilities, and leasing of lands for development by private enterprise. Although no state coastal zone authorities have yet been established, bills for coastal management have been introduced in several states (Washington, Cali- fornia, and Rhode Island). None of these bills have been enacted at this writing. They are described in State Coastal Management Legislation issued in December, 1970, by the New England River Basins Commission. The Bureau of Outdoor Recreation of the U. S. Department of the Interior, in its 1970 report, Islands of America, has proposed the creation of five Maine Island Trusts, the initial one comprising the islands in Casco Bay and the others 129, being Sheepscot Bay, Muscongus Bay, Penobscot Bay and Downeast. It is recom- mended that 30,000 acres (about 15% of the total island area) eventually be placed in public ownership (one-third in fee) under State or local Management. Six state actions are recommended: 1. Including analysis of islands in comprehensive plans; 2. Clearing title to state-owned lands and assuring public access; 3. Providing statewide zoning for island conservation; 4. Adopting regulations to control dredging and filling; 5. Including island protection in State pollution regulations; and, 6. Acquiring or otherwise obtaining public access to suitable lands. The Bureau also recommends that local governments adopt long-range plans and effective zoning, acquire island property for public use, and assure public access to shore lines by acquisition, easements and tax incentives. In addition, the Bureau advocates that private groups support Island Trusts, purchase desir- able islands and control public use, provide limited public recreation on private- land, and donate islands to public or quasi-public bodies for recreation and con- servation purposes. In a report entitled Protection and Development for Recreation Resources submitted to the New England Regional Commission in November, 1968, there is a proposal for establishment of The New England Trust. It would be a private, non-profit organization administered by a Council composed of representatives from public and private agencies with interests or responsibilities in the use and conservation of open space and in the preservation of historic buildings. The Trust's functions would include: planning regional recreation resource develop- ment, acquiring and managing natural areas, improving existing recreation areas, improving and protecting New England's open land, acquiring and maintaining historic buildings, giving technical assistance and legal advice in conservation and preservation to private and public agencies, supporting education and publishing information on conservation and preservation. Practically all decisions regarding land use in coastal Maine relate directly or indirectly to some facet of recreation. New methods for looking at the overall effects of land use are needed as well as workable means for implementing land use projects that utilize the multiple use through recycling concept. Recreation must be recognized as a necessary ingredient in the development process. Future land use planning must reflect this fact if mistakes of the past are to be prevented from recurring. The scope of what lie ahead for planning efforts is strongly suggested by what is presently taking place to change the recreational resources of Maine. Such alterations as: The filling of salt marshes for beaches, marinas, resorts, or industries will destroy fish, shellfish and birds. The construction of factories producing high volumes of air or water pollut- ants will impair a wide area for most recreational purposes. 130 Contamination of ocean or lake water by sewage from residences or industry may preclude its use for boating and swimming. The occupation of large shore-front tracts by resorts or summer residences may prevent access to the public (both residents and transient tourists), The urbanization of the shoreline and lake-frontage, particularly along high- ways, may result in such ugliness that the area loses its charm for both resi- dents and tourists. Should Maine become, in effect, a national park to provide for the recreational needs of the nation, as has been suggested, or should it put primary emphasis on raising the income level of its poorer citizens and effecting a more stable econ- omy? Can both goals be met concurrently? If the projections of visitor-days and expenditures by tourists which were shown earlier in this report are realized, would the resulting economic benefits be sufficient to justify the probable deterioration in the environment which might result? Or, can tourist expansion be realized in Maine without severe environ- mental alteration? The far reaching implications of these concerns point out the shortcomings of the fragmented attempts at solutions that have been used in the past. Tomor- row's solutions must be based on an integration of the combined leisure needs of man with the vital needs of nature. FOOTNOTES - RECREATION COMPONENT 1 Recreation Appendix - Year Round Homes on the Maine Coast 1960-1970 - Table 7 2 Recreation Appendix - Seasonal Homes on the Maine Coast - 1960-1970 - Table 8 3 This estimate is based on the decline experienced between 1960 and 1970 in a similar Census category. 4 Recreation Appendix - Market Value of Homes on the Maine Coast 1960 and 1970 - Table 9 5 Maine Department of Economic Development, Recreation Property Inventory 1959 6 Recreation Appendix - Number, Capacity, and Market Value of Commercial Lodgings on the Maine Coast - Table 10 7 Maine Department of Economic Development Recreation Property Inventory 1959 8 Recreation Appendix - Payrolls, Receipts and Transient Rentals of Commercial Lodgings on Maine Coast - Table 11 9 Recreation Appendix - Estimated Occupancy of Commercial Lodgings on Maine Coast 1968 - Table 12 1o See explanation under Forecasts of Recreation Demand - Recreation Component 11 Recreation Appendix - Camping Facilities and Usage of National and State Parks on the Maine Coast - Table 13 131 12 Recreation Appendix - Number of Pdivate Campgrounds on Maine Coast 1967 - Table 16 13 Recreation Appendix - Capacity of Private Campgrounds on Maine Coast 1967 - Table 17 14 Recreation Appendix - Estimated Occupancy of Private Campgrounds on Maine Coast 1967 - 'fable 18 15 Recreation Appendix - Capacity and Day Use of National and State Parks on Maine Coast - Table 19 16 Recreation Appendix - Piers, Clubs, Boat Yards, Marinas, and Launching Ramps on Maine Coast 1970 - Table 24 17 Recreation Appendix - Average Daily Highway Traffic at Automatic Recorder Stations on Maine Coast - Table 27 18 Recreation Appendix - Area and Day Use of State Forts and Memorials on Maine Coast - Table 28 19 Recreation Appendix - National Historic Landmarks on Maine Coast 1970 - Table 30 20 Recreation Appendix - Museums Open to Public on Maine Coast 1969 - Table 31 21 Recreation Appendix - Federal and State WVlld Life Refuges on Maine Coast 1970 - Table 33 22 Recreation Appendix - Private Nature Conservation Areas on Maine Coast 1970 - Table 34 23 Recreation Appendix - Activities of Registered Guides on Maine Coast 1970 - Table 35 24 Outdoor Recreation in Maine, Outdoor Recreation Study Team, University of Maine 1966 25 Recreation Appendix - Game Kill on Maine Coast 1968 - Table 36 20 Recreation Appendix - Number, Receipts, and Payrolls of Commercial Amusement Establish- ments on Maine Coast 1967 - Table 37 27 Recreation Appendix - Taxable Sales on Maine Coast 1960 and 1969 - Table 40 28 Recreation Appendix - Retail Sales of Recleition - Related Stores on Maine Coast 1958 and 1967 - Table 44 29 Recreation Appendix - Number, Capacity and Sales of Eating and Drinking Places on Maine Coast 1967 - Table 42 30 Recreation Appendix - Air and Water Passenger Carrier Traffic on Maine Coast 1960 and 1970 - Table 43 31 Recreation Appendix - Marina Facilities on Maine Coast 1970 - Table 25 32 Rural Recreation Enterprises in Newu England, Agricultural Economic Research Report No. 56, Resource Development Economics Division, Economic Research Service, U. S. Departmlent of Agriculture. 132 d ) 1'>1 1 I I .11 1% lI V1 ii i1V II I I 1 1 1111 II17+III V I yy1 1 Y1i I> I 1<7 A 7jj II A I j>1 A A 3*,* I * I Ui IL 11.1 A * ) 'IL - - - -a ii II k __ Eli III I - - I RI - -- - i. -m. - I i. -- J III a B -- -- -- I __ ____ - L LEi .ini' mi mmmi. INTRODUCTION TO INDUSTRIAL INTEGRATION Previous sections of Cycle IV of Maine's Public Investment Plan have thor- oughly traced development patterns, present trends and planning implications of three major coastal uses in Maine. Prescriptions for improvement were suggested. In this section, a workable proposal is made for a comprehensive solution to those specific problem areas identified as well as others which were only alluded to. Implementation of this proposal would require a major redirection in current efforts but could easily result in a vast improvement in the quality of lives of many of Maine's citizens.. It is increasingly clear that drastic changes are rapidly taking place in many basic, traditional American values and pursuits. Growth, for example, as a driv- ing motive and as a measure of continued progress, is now being openly ques- tioned. The reawakening of man's intimate concern for his environment has dramatically indicated the folly of unlimited growth on what is clearly a resource- limited planet. Such changes and the trends they imply can, however, be beneficial to Maine, provided the State begins the process of re-evaluating its characteristics in the light of these new directions and reorienting its priorities accordingly. Cer- tain professed economic disadvantages in Maine can now easily be considered as assets. Such features as inaccessibility, low industrial development, few people over a large area, all work to place Mlaine significantly ahead of other areas in terms of this new, emerging environmental-consciousness. In fact, Maine's eco- nomic stability is now based directly upon the quality of its social and natural environment. It is also recognized, however, that many persons in Maine have not shared in the economic bounty that most enjoy. This proposal seeks to correct some of these basic economic inequities, yet incorporates this with an essential concern for the continued quality of Maine's environment. Thus, the first aim of this pro- posal is to provide, jobs for many of Maine's disadvantaged people. Second, through a symbiotic industrial integration, a system is proposed which is not heavily taxing to the environment. Finally, by focusing on Maine's abundant natural resources and its newly recognized assets, a unique, highly profitable and stable activity can be easily initiated. Generally, the intention of this proposal is to present a rational development proposal for the coastal zone of the State of Maine - one which would provide a high standard of living for its population. Specifically, the assignment is to con- front certain problem areas covered in other sections of this report, and then in this section to explore totally new ways in which these problems might be made to contribute to viable solutions. The problem areas covered are recreation, land and sea farming, power generation and recreational growth centers. The scope of the proposal contained within these pages is necessarily broad. It is meant to suggest many possibilities for improving Maine's economic status. The proposal is based on the environmentally sound concept of recycling which facilitates the development of otherwise marginal industries which, when brought together, can attain a clear economic justification. 135 CID Processing People TetetPosinPope Sewage eatm e n t recessing eop ~~~~~reatmen Common ~~~~~~~~~PlantAuautrPln oean Prim ~~~~~~~~~~~~~~~~Fishis 40 X < : )~Aqacu Heat pPW3 Ocean Pollution llOcean CONVENTIONAL SYSTEM PROPOSED SYSTEM Reduces supply of fish from the ocean and con- Provides prime products for the human tributes to the deterioration of diverse eco- cycle without adversely affecting the logical system. ocean environment. ENVIRONMENTAL ALTERNATIVES figure 4-1 The recycling concept operates between a town, an electric power plant, and aquaculture industry, and expanded existing agriculture and fishing industries. The basis for cooperation between these components are those economic and ecological advantages to each member derived by exploiting the natural de- pendence of each on the others in a manner more efficient than is currently em- ployed. Specifically, the wasted byproduct of one industry is often useable as a raw material for another industry. Both industries become more profitable if one industry can buy the other's waste at a lower price than he otherwise pays for raw materials and the other sells his waste rather than paying to dispose of it. Coastal Maine possesses several opportunities for land use integration of this nature which will make new industries feasible, revitalize existing industries, pro- vide local towns and the State with additional tax revenue while lowering some of their operating costs, provide coastal residents with employment and recrea- tion and lower living costs, and provide lucrative investment opportunities for many investors. Figure 4-1 is a schematic representation of the concept of industrial integra- tion as it relates to the more conventional system. ESSENTIAL CHARACTERISTICS OF PROPOSED SYSTEM The recycling concept involves a food supply chain and a waste disposal/ pollution control scheme. The components of the recycling system are a town, an aquaculture industry, agricultural expansion and an electric power plant. The major flows in the system are: 1. Food from agriculture and aquaculture to people; 2. Sewage and wastes from agriculture, food processing industries, and cities flowing to the algae culture; 3. Animal feed from algae culture to poultry and other aguaculture farms which then raise products for human consumption; and, 4. Heat and energy from the power station to the aquaculture complex and other components. The concept is presently undeveloped in the United States and Maine be- cause the combination of motivating forces has matured only recently. These motivating forces are: - critical need for new industries in Maine which would create a wide range of job opportunities for a large resident population of sea-oriented people - increasing concern for the abatement of coastal pollution, thus restricting many industrial development prospects - the need for the reduction of power-generated thermal pollution from the expansion of power generating facilities on the Maine coast 137 - the slowly declining state of Maine's commercial fishing industry com- bined with the increasing discovery of harmfully polluted natural stocks of ocean fish - the impending food-population pinch requiring large new high-protein sources. The development of an aquaculture industry in Maine is thus a natural solu- tion to these motivating forces. Constraints faced in developing aquaculture are largely alleviated through the integration of other industries which would provide the initial support required to make sea farming viable for the Maine coast. The following flow diagram indicates the many interrelationships of indus- trial integration. Aquaculture The first phase of aquaculture development is promoting natural ocean pro- duction by seeding, protecting and feeding desirable species. This phase has been practiced by the Chinese for 4000 years, by the Romans 2000 years ago, and is widely employed today in China, Japan, Europe and in some parts of the United States, particularly in the lobster and oyster industries. The second phase of aquaculture is raising products in closed tanks, ponds or pens. In the United States, fish farming is already well established and com- mercial oyster ponds are beginning to prosper. In Europe, fish, oysters and clams are all raised in large quantities. Fish ponds are a food source second only to rice in China. Several countries notably Scotland, England and Russia, are de- veloping complete aquaculture systems involving the production of algae, shell- fish and fish. A promising new development in aquaculture is the use of heated water from electric power plants to raise the growth rate and extend the growing season of marine cultures. The resulting increase in productivity greatly enhances the competitive position of aquaculture. Fish are presently being raised commer- cially in heated water in Russia, England, Scotland and Germany. In the United States, oysters are raised commercially in heated pools on Long Island. Pilot projects involving heated water, sewage and food production from algae are underway in England, Scotland and Germany. Several dozen universities and other research stations have contributed to the development of aquaculture by re- searching the food, environmental and health requirements of promising aqua- culture species. Considerable progress is being made in breeding and selecting new strains of fish which have high growth rates and other features desirable for cultivation. Maine's cold waters are reputed to be one of the most nutrient-rich areas in the world. Many of its estuaries have large tidal flushing rates facilitating the in- troduction of food and nu!rients and dissipating low levels of fish wastes. Al- though some of Maine's largest estuary complexes are polluted, the source of 138 INDUSTRIAL INTEGRATION fgr - IN COASTAL' MAINE fgr - I ~~~~~~~International Airport 2 1. ~~~~~~Transportation Routes Year-roun ower OrganiLc Greenhu TOWN~~~~~~~~~~~~~~~~~~~~ _Trnspoue reatment ~~~~~~~~~~~139 pollutants are in many cases in a few localized points, facilitating clean-up of the Maine coast. The coast also has a highly varied configuration providing a wide range of natural ocean environmental conditions. Finally, the geographic location of the coast on the fringes of both arctic and temperate sea environments permits the development of species common to both areas. Thus Maine is admirably suited to a wide range of aquaculture develop- ment possibilities. Recreation Recreation in Maine faces numerous problems. Last year (1970) more than one million people drove by automobile up the coast of Maine to visit Acadia National Park. Tens, perhaps hundreds of thousands of others visited Maine to enjoy its lakes and streams (fishing, boating and swimming), mountains (skiing, hiking, climbing), forests and fields (nature study, exploration, collecting). As the large urban areas to the south increasingly become untenable as wholesome en- vironments, there is a proportionate recreational pressure placed on Maine, much of it on Maine's 3,500-mile coastline. Of this enormous coastal area, only 25 miles is open to public access. The rest of it is under private control of one form or an- other, some of it commercially open to the public. Much of the coastal pattern of recreation in Maine is geared almost exclusiv- ly to the automobile. This means that recreation on the coast is mostly visual and tends to concentrate in those relatively few areas where road construction and the sea happened to meet, usually at the heads of bays and estuaries. Uncontrolled land bordering heavily traveled highway almost always results in sub-standard development. The participating establishments must be readily visible and ac- cessible to auto travelers. Contrary to the skiing, hiking and canoeing recrea- tional public, the usual coastal recreationist is a passive non-participant, and the exploitation or servicing of his needs intensifies a pattern or uncoordinated and unattractive development. Last, the seasonal nature of this coastal recreational industry may send a relatively large portion 'of the income it generates out of state, where the owners themselves spend the winter months. And, even at that, relatively few types of business really benefit from this passive tourist popula- tion, since the owner of the camper or tour trailer often stocks his larder at home, before leaving for Maine. Our major consideration of coastal recreation, then, is to establish an inte- grated way of controlling its location, guaranteeing its quality and providing some sort of real engagement with the environment for those who utilize it. As part of this proposal, therefore, a small recreational resort town-city com- plex of approximately 11,000 permanent residents is suggested as part of the total complex. This community, which could easily be an expansion of an existing Maine town, would provide an intensive recreational experience for many visi- tors to the coast and would, at the same time, minimize the tourist impact on ecologically sensitive coastal areas. Energy The projected need for electrical power in the United States has increased substantially. Within two decades, it is estimated that 250 new power plants will 140 be needed across the country. In Maine, the Maine Yankee Atomic Power plant now under construction will become operational in 1972. Another major power generating plant near Cousins Island in Yarmouth is scheduled for completion by 1977. In terms of longer-range projections for the Maine coast, studies indi- cate a possibility of an additional 15 to 30 power generating plants by the end of this century. Site problems in connection with new power generating plants are increas- ingly becoming the subject of concern. The consequent discharge of large quan- tities of heated condenser water may cause deterioration of the ecology of re- ceiving waters unless careful controls are imposed. Because of Maine's cool waters, sites along its coast are becoming increas- ingly desirable as a coolant for power plant effluents at potentially minimal en- vironmental destruction. It is anticipated, however, that cooling waters from nuclear plants can be economically utilized- in the form of heating waters for aquaculture, algae, fish and poultry food production, and as a source of low-cost heat for recreation, greenhouses and a small community. Electric power plants convert only 30 to 40% of their fuel energy into electricity. The remaining 60 to 70% is wasted as heated coolant water. A typical power station wastes as much heat as can be pro- duced by $500,000 worth of fuel per day. This heat is difficult to utilize because it is available only at low temperatures (70-l00o F.).' This temperature is, how- ever, ideal particularly for aquaculture. Although considerable controversy surrounds the safety and health aspects of both site and actual operation of power plants, a great deal of research is being undertaken to alleviate these fears. The Power Component, another segment of this investigation, considers in greater detail some of these concerns. Techno- logical solutions can be discovered to ameliorate potential environmental threats from thermal effluents provided that cooperative, open working relationships are developed between private and public power interests. This source of inexpensive energy for Maine's use could mean a new era of economic well-being for the State if it can be utilized as described herein. SPECIFIC ASPECTS OF MAJOR SUBSYSTEMS The following pages outline kenown characteristics and features of the vari- ous subsystems included in the industrial integration proposal. Functional rela- tionships are diagrammed, production processes outlined and site criteria pro- vided. These descriptions are then followed by tabulations listing products, markets, raw materials needed and values attributable. Also tabulated is land and loca- tion requirements and financial aspects of each major component. The concluding section provides a summarization of land and site character- istics and financial returns expected. 141 KeyX Electricity Note: Units used in volume Heated Water ......... flows are; Reclaimed Water..."'.. L /tr \ Algae - lb/day Algae......... I ecreatio arms Power Plant. Curry - lb/day Effluent.....r ..| m 1 2 ... . Beach Grcenhouse 860-M~ Watt Sewage - lb of solid nutrient Curry ..........oUnits /day Produces~- ...- \ Reclaimed Water - gal/day "- -:%;~~~~ ~~~~Hot Water - gal/hr t 10 M / a 4 M Fertilizer - lb/day ).000'00 2M~~~~~~~ Town ~~~~~FertiliJ te { Town \ (25,004 3 % 11,000 people 85 700 acres algae 90, meat/yr � ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~:� Recli\0 M gal/day Algae.- . 000l F sewage Farms. sih~ri;LX-,~Su'' 23 M Prcossinut Plant :'r~ ES ~i~ o ster { Farms 3 M l~e~70 acrs agema/yr \ ,/ \- / ~~~~~~~~~~~~~~~~~~~~~~lbs/yr 48 M lbs/yr lsy ,00 75,000 2( rocessin Chicken �Trout Plant [2,000 Farms Fi 30,0 0Y 9 m lbs yr Chicken Eggs \\50 M lbs/yr 22 M doz/yr Food for Consumption and Export f igure 4-3 FLOW DIAGRAM FOR RECYCLING SYSTEM SUBSYSTEM: AQUACULTURE / LOBSTER FARMING Function/ To raise commercially marketable lobster Product: Market: The U.S. is currently importing large amounts of frozen lob- ster; New England currently absorbs most of the fresh supply. Waste/ Metabolic waste from settling tank is used as Byproducts: fertilizer. egg bearing heated sea water @ 700 (power female lobster / plant) female / lobster \ processing lobster /rfood hatche ale obster rearing obster algae larae ad p tank - t farm ta ks 1 year (silos) sls \/ recycle sea water sett n etlin tanks & t tanks w~~affle ~affle waste water wast a water estuary obster I nests Process: Female lobster, bearing brown eggs, are brought in by lobster- men and placed in hatching tanks. They are kept in circulating sea water at - 65 to 70� and fed as normal (once a day). The hatched larvae are screened into "rearing" tanks and fed a diet of ground clams and algae. After reaching the fourth molting stage (two weeks), the lobsters are transferred to individual cages in larger tanks. Flowing sea water heated at --+ 65� is constantly circulated through the tanks. At the end of one year, the lobsters are transferred to larger cages. These cages are roughly twice as large as the lobster will be at market size. Market size is expected to be attained in 3 to 4 years. 143 Two forms of farming might be employed here - silos (inland) or lobster nests (estuary). Silos have the advantage of permitting "intensive" care. These vertical silos are structurally very inexpensive. Sea water at 65� is pumped to the top and circulates to the bottom of the structure. The sea water after treatment flows to the estuary. Food is introduced at the top of the structure and is carried naturally down by the flow of sea water. Alternative method of production in estuaries. The use of closed-type estuaries with little or no outside pollution could be ideal for extensive lobster farming. Large cages or nests with individual compartments would be placed on the floor of the estuaries (some could also be floated). A float would serve to hold the feeding line and hoisting cable. Feed would be in- troduced via a feed line into a core distributor. The food, some pellet form' of food, would be carried via the tidal flow through the nest. Any food not consumed by the lobsters would be carried by the tidal flow and consumed by the fin fish being raised in the same area; they would be contained by nets across portions of the estuary. Site Criteria: Located close to but not on estuary for sea water disposal: close to warmed sea water supply line. Silo farms need only 3 acres of land to accommodate the 7 silos. Slope of 8-15% could employ gravity flow: less than 8%/ would need a pump system. Soil suitable for medium founda- tions and extensive underground piping. Silos will have strong visual impact. Small clusters should be screened with trees to preserve scale and establish rural land pattern. combination of fish curry and algae Lobster Farming / Silo and Estuary 4,000,000 2-lb. lobsters/year half produced in estuary cages = 2M/year other half produced in silo farms = 2M/year assume cage size is 2'xl'x6" 1 cubic foot 1 cubic foot lobster 30 x 12 x 15 10,500 = lobster/silo Capital Cost Land: 3 A @ 500/A $ 1,500 7 silos @ 3000 apiece 21,000 cage system @ 1500 10,500 pump and food feeds = 2000 12,000 $45,000 144 Fixed Cost Interest $ 3,150 Depreciation, 20 years 2,250 Taxes @ 30/1000 1,800 $ 7,200 Fixed cost $ 7,200 Maintenance 2,000 Heated water 10,000 Food: 120,000 lbs @ .08/lb 9,600 Labor 10,000 $38,800 Expenses $38,800 Income 72,500 - 10% mortality = 65,000 4 years 16,300 lobsters/year x 2 + 32,600 x $1.40/lb. = $45,600 Income $45,600 145 SUBSYSTEM: AQUACULTURE / RAINBOW, BROOK TROUT Function/ To raise commercially marketable rainbow and brook trout Product: Market: Large U.S. market: currently large amounts of frozen trout are imported for commercial and restaurant trade (particularly New York and Boston markets). Waste/ a) Metabolic waste from settling tank used as organic fertil- Byproducts: izer and for raising bait worms b) Unused portion of fish is processed into fish meal TIME -6 MONTHS 4-7 MONTHS - Heated sea water 65-700 heated fresh water to processing trout food & market larvae salinity trout hatchery acclimatio farm Pools5 Csilos) recyc e sea water to treatment settling ettling plant tanks , tanks t baffles baffles fingerling stock aste sea waste sea water water estuary I Iretention nets 146 146 Process: Fish larvae are hatched at either the on-site hatchery or pur- chased in the fall as fingerlings (3-6"). They are raised to about 3-6" and then put in salinity tanks for adjusting to seawater salinity (30 to 31/1000). The next stage has two possibilities: inland trout farming and estuary trout farming. The inland fish farming would be more intensive in nature and thereby allow a greater density of fish per cubic foot (lbs/cubic ft). This could take place in silos. Via a controlled inlet at the top, warmed sea water at 65 to 750 is introduced and exists through an outlet at the bottom. Food in pellet form would be introduced at the top and drift down with the cur- rent. The warm sea water would then drain out and be collected along with that of other sea-water silos to be passed through a clarifying tank where the solid metabolic waste would settle out. The solution would then pass over a series of baffles to remove some of the gases (ammonia, etc.) and then passes to the estuary (some might be recirculated through the tanks if the clarifying system were large enough). The fish would be graded between 4 and 7 months, the market-size ones being sent to the processing plant and the undersized sent either to the silos or into the estuary for fur- ther growth. The alternative is estuary trout farming, where fingerlings or undersized fish could be raised in heated-water estuaries. These would be enclosed estuaries with neated areas to keep fish confined and separated as per grade. They might also be kept in with lobster nests, since they are basically top feeders and would not interfere with lobster feeding. Flounder or some bottom fish could provide clean-up for all unconsumed settled food, perhaps. Metabolic waste could be carried out by the tide and diluted. Site Criteria: Fish farming with the use of silos could be accomplished on a slope, using gravity, and on the flat using pumping systems. Both need soil suitable for medium-weight foundations and extensive underground piping. The silo farming has the ad- vantage of using back land rather than valuable coastline (which can then be used for recreational areas or other land use). Protection from sea storms and large waves is necessary. Allowances would have to be made for tidal fluctuations and 50-year storm tide. Silos are a dominent land pattern and would blend well with proper edge pattern development. 147 Fish Farming with Silos and/or Estuaries 6,000,000 lb production silos 3,000,000 lb production estuaries 9,000,000 lb total Operational Cost of 30' x 60' silo = 42,000 cu ft 2 cycles/year 2 silos/man - 40,000 lb trout Capital Cost Land $ 500 Silo 10,000 Pumps 4,000 Mechanical 4,000 $18,500 / silo Operational Cost - Fixed Cost Interest @ 7% $ 1,300 Taxes @ 30/1000 540 Depreciation @ 20 yrs 900 $ 2,740 $ 2,740 Material Cost Food 21,600 Labor 6,000 Heated Water 10,000 $37,600 $37,600 Expense $40,340 Income 40,000 per crop 72% maturity - 35,000 x 64% = 22,500 lb x 2 = 45,000 lb x $1.00/lb Income $45,000 148 FUNCTION INPUT OUTPUT FINANCIAL CO UTP onenT sMarket BYPRODUCT LAND USE Components Market Locational Factors Site Requirements and Considerations Land Area Capitalocational Costs End oyient Power Generation Local & Operati al C temploy L Tax Acre s Nuclear material Electricity Heated sea Availability of coolant water, preferably within AEC regulations: 1) 3000' radius of nonhabitation; Plant- Eastern Coolant water 1,700,000 KW water 8,000 ft of salt water 30 to 60 feet deep. Seaboard 54,000,00o gal/hr 2) one mile from major population center; 3) able to 54,000,000 to ship 300-ton pieces by barge; 4) foundation & $350 M gal./hr. seismic stability. Radioactive wastes Resort Town* Eastern Land, building materials and de- Services and living space,.Red Sewagee Near salt water and major traffic route; near air- Individual protection and careful blending with the 3000 A. $30 M maintain rural character. 100-250 $.240 M Resort T o wn~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~10 -2 0 .2 0 11,000 people Sewaboar 11d sign concepts. Main idea is to tion area for 800-1500 peoi 800,000 port. Location near major institute desirable. natural surroundings. Visual contact with water to ~~~~~~~~~~~~~~~to 11,000 people maintain rural c$aracter.36ulti- Se,,iees: $40 M use with tech. institute for Y,,, 5-m~~~~~nth ocean sw gald d a y ~ ~frontage, land form and some slope to maximize vis- use with tech, institute for year- ming, yacht basin, go/l' coJ w olto laiiis round use. 'g yacht basin, golf en, ~~~~~~~~~~~~~~~~~ual contact with water. Existing pattern to have as dwellings, restaurantsd usome. facfew visual liabilities as possible. High quality water, dwligrestanrants. Some f Casta ties and units to serve tech, in' CoastaliResearch* Land facilities tor research, refer- Services and technical help forientati on to sun, few pollution liabilities. tote. Coastal Research** Land facilities for research, refer- Labo r a t o r L a nd facilitis for research, refer-Services and technical help for' ence and abitation_ Sewage mall frotage requrement onocean. Prxin-iityDevelopment of major open spaces and building $4M6-0 Laboratory ence and habitation tire recycle complex mto town is desirable. asses. Shape and composition of building and 200 A to open spaces will reflect quality of spaces and nature $10 3 ~~~~~~~~~~~~~~$.3M of environment. Waste Treatment Local Human effluent (20,000 lb./day) Treated effluent for algae fa. Ozone from To reduce piping cost, facility should be located Level land (less than 4% slope), not in flood plain, 0 A.$2$.40Mya35 Complex Effluent Chicken manure (180,000 lb. a (200,000 lb./day) ozone injector near population center and algae pools; also with- security fencing. Visual screening of pools: offensive to $120/M gal. t ope Collection Food processing plant effluent Organic fertilizer from sludge is recycled. in easy transportation distance of chicken farms odor only if system malfunctions. $.09 M (18,000 lb./day) (25,000 lb./day) Methane is and food processing plants. Some thought to pre- Reclaimed water (650,000 gal./ generated by vailing winds. Retention ponds for overflow dur- day) decomposition, ing malfunction. possibly used for heat and power Algae Pools Local Aerated & ozone injected effluent Dried algae for chicken fced Salt water Close to waste treatment complex and oyster and Large fiat area. Terrain suitable for gravity flow of 800 A. $3.3 M $730 M 10-30 Aquaculture waters - 220(75,000 lb./day) containing fish farms. Stnm gal./day forms (125,000 lb./day) algae ~: existing & Agrinculturedlightheated sea w4-ater 100 Algae broth for and fish algaecbroth to oyster agnae cop lexstuary. new or existing * * includes 945-acre recreation complex 170 FUNCTION INPUT OUTPUT BYPRODUCT LAND USE Component Market Locational Factors Site Bequirements and Considerations Land Area Capital Costs Operational Costsmloyet Local T Lobster Farms U.S. & _______________ Employment Local Tax Payments Component~~~~~~~~~~~~~~~~~~~~~~~EmloyentLocl ax aymnt Lobster Farms U.S. & Heated sea water (23 M gal/ Lobster (4,000,000 2-lb. Farms can be inland or on estuary for disposa l Silos dominate land pattern. Soil and terrain suitable 100 A $9,900,000 $9,000,000 230 $297 M Lobstr Europe hour) lobsters/year) $12 M and reuse of sea water. for mediu m foundations and high-volume pipe lines. 5 A/farm (230 farms e (230 farms f I Lobster food (85,000 lb./day) Estuary suitable for lobster growth. $45,000/farm) 939,300/farm � Heated seat water (4 M gal/ Oysters (3,000,000 lb./ Near or on estuary. Near algae pond. Channel System terrain & soil suitable for channels Oe Oyster Farms U.S. & hour) year) $ 3 M and for high-volume pipe system. 100 A -3,900,000 92,950,000 Europe Algae broth (90,000 lb./ day) Estuary System: raft pattern dominates site charac- (85 farms c I pi farm) ter. Incompatible with recreation, Storm protection, $45,500/farm) $34,700/farm) tide & cnrrent fo~r flushing. Heated sca water (8 M gal/ Trout Farms U.S. hour) Trout (9,000,000 lb./ Slope channeled ponds used to agitate water. Silos dominate land pattern. Soil tor medium tounda- $2,800,000 3,000,000 r Fish & chicken curry year) $ 6 M Estuaries: warmn water and protected from coast- tions. Estuary: tide and currents for flushing, pro- 100 A (75 farms ( i (75 farms i (25,000 lb./day) al storms & tides. tection. Incompatible with recreation. . 37,000/farm) $40,340/farm) Algae broth (35,000 lb./day) Cool coolant water from Tidal fluctuation & currents, protection from hurri- Estuary aquaculture. Natural ocean Part of the fish and shellfish Close to algae ponds and power plant. canes, flood plain contamination siltation. Shape for 100 A water and food. culture is raised in the estuary. tidal flushing, net reten'n. No industry pollution. Broilers (17,000 birds/ Chicken Farming� Local & New Imported grain (120,000 year) Farms can be located inland. System for delivery 10-25 acres in size. Poultry buildings are large $5,650,00)0 $16,000,000 Chicken England tons/year) Eggs (22,000,000 doz./ of manure to waste treatment plant required. masses and present screening and scale problems. (100 farms (t (220 farms @ 220 $ .15 M Farming Algae feed (12,000 tons/ year) Proximity (25 miles) to processing plant and Edge & screen elements to determine quality and 1000 A $56,500/farm) $72,000 farm) year) Manure (180,000 lb./day) feed sources. rural character. $16 M Good soil for agriculture (0-10% slope). 5-15 acres $18,300,000 Organic & Organic & Green- Eastern Sunlight, fresh water, Vegetables and flowers Organic 10 mile radius f power plant in size. Plastic greenhouse gives unique land pat- (100 farms OA $3,000,000 house Farming Seaboard fertilizer, heat $' 2 M wa ste 40 mile radius of airport tern. Low building form makes screening easy. 1000 A $180,000/1-A. (100 farms a 200-300 house Farming Seaboard fertilizer, heat $ 2 M waste Farming~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~20030 $ 6 As close to town as "rurally" possible. Shape of buildings and open space will determine greenhouse & $30,000/farm) quality of rural spaces. land @a $300/A Whole fish (12,000,000 lb./ Fish (50,000,000 lb./ Seafood & Seafood & Chickhn~'~ New year) year) Effluent Located near (5 miles) fishing village-aquacul- Flat area. Visually screened with land form or land Processing Plant England Whole chicken (17,000,000 Chicken Meat (50,000,000 ture facilities. Close to highway. Close to air- pattern (t rees). Soil suitable hm medium founda- 25 A $6,50(0.000 $34,000,000 400-500 ce birds/year) l b./year) port. Requires large amounts of fresh water and tions and extensive munderground piping. Plant Fresh water (650,000 gal/ Curry (110,000 lb./day) super heated steam. day) $34 Ml International I nternational Jetport' World Flat land, fuel Transportation 4umosph. Near town, technical institute, resort. Large flat area. No vertical obstructions (mountains, 2000 A oe pot I ollu. Proximity to processing plant. towers). ' existing1 c new or existing 169 PAT FIVE: ~~jR LPE NJ IMPLEMENTING COASTAL DEVELOPMENT POLICIES Introduction The development of proposals such as suggested in the previous section re- quires careful consideration of implementation alternatives. Until now coastal development has been almost entirely the province of private enterprise. Public involvement has been restricted to single purpose projects with a restricted scope such as Acadia National Park, or Kittery Naval shipyard. The integration of sev- eral major industrial prospects for the Maine coast will require new techniques of organization and administration. This section reviews, briefly, some alternative institutional arrangements that will be needed for such socially-responsible coastal development projects. The institutional innovations discussed represent types of public organiza- tions capable of implementing unique, large-scale projects that can only be ac- complished through public-private cooperation. Another requirement needed is the ability for land and marine resources acquisition for the comprehensive de- velopment of a particular site. Such an institutional mechanism has evolved at the state level as the result of the pressing urban crisis in other parts of the country. It is referred to by two names, an "urban development corporation" (U.D.C.) or an "area land development authority (L.D.A.)" The U.D.C, or L.D.A. allows project implementation through both state and regional public organiza- tions on a comprehensive institutional basis. The functional need for such institutions has been generated by the expan- sion of influence of many development activities across municipal geographical borders and the parallel requirement for quick and easy assembly of the resources necessary to carry out projects that involve multiple land-use developments. Mo- tivating the multi-interest institution is the enticing hope that the maximum bene- fit can be obtained at the lowest cost and much more rapidly. Finally, the im- mediate need for lending impetus to such prospective industries as aquaculture, multi-use of power projects, and controlled port and recreational development, mandates the presence of powerful fiscal and administrative tools to undertake the required research, and planning to get such projects underway. Further complicating the matter are existing demands to husband our natural resources while at the same time tremendous pressures exist for utilization of these same re- sources. A governmental hands-off attitude is increasingly viewed as potentially self-destructive, an approach that does not allow for long term views of develop- ment and conservation but only for short term private gain. There is little question that the Maine coast is a limited resource in terms of physical size and in its ability to support particular uses. Beneficial employment of these resources is an absolute necessity. It is this necessity for the wise use of Maine's coastal resources that require careful integration of competing land uses, and the need for new approaches to wisely developing the natural capabilities of the coast. Public experience with organizational structures designed to combine public and private interest where a number of potential competing uses are in- volved, is limited. However successful examples do exist. Urban renewal, air- ports and private-public developments of parks and recreational areas, to name three examples - have set precedents for this type of activity. 173 The acquisition and development of resources could occur through a type of Urban Development Corporation or Land Development Authority which have similar capabilities and powers regarding acquisition and development. Each of these institutional approaches offers a common set of powers and capabilities: (1) The acquisition of land using, if necessary, the power of eminent domain. (2) The general powers of a corporation, to sell, lease, contract, bond, and manager projects. The power to operate business enterprises that can be operated on a profitable basis by private enterprises is not included. (3) The establishment of local area development corporation with powers similar to the parent agency. (4) The ability to over-ride local ordinances and zoning codes where neces- sary to allow the agency to operate quickly and effectively in its develop- mental projects. (5) The availability or required presence of advisory citizens committees to provide guidance on both projects and programs. (6) The ability to work with all public and private non-profit firms on spe- cific projects or programs. (7) The capacity to create any type of multiple-use development unit. The urban development corporation concept permits the self-financing ap- proach of projects through sale, lease, or capital management and by selling revenue bonds. It is expected that seed money will be required to begin the corporation and to fund initial administrative costs. The development corporation would be a valuable tool for the type of mul- tiple development previously discussed. The British experience with coastal plan- ning indicates the need for undeveloped coastal estuary areas to be developed as "planned unit development" using the authority and resources of the government to insure wise and coordinated development of potential uses on a comprehensive basis. In Maine such an approach could be accomplished through the employment of the development corporation with actions coordinated with other public and private agencies. As an example, the recently defeated Aquaculture Act (An Act to Encourage Aquaculture in NMaine's Marine Waters, L.D. 1242, 1971) would have permitted leasing of both shore and tidal lands as well as subacqueous areas for private research and commercial aquaculture activities. The Aquaculture Act did not however assign the power of eminent domain to the Sea and Shore Fish- eries Department, nor did it grant administrative powers to develop or contract for facilities not directly related to aquaculture activities. With additional research it may be found feasible to utilize thermal effluent from an atomic power plant to control water temperature of a aqua-farm such that year-round culture of shellfish and growth of farm land products can be com- mercially successful. A Maine urban development corporation could easily act as the coordinating and development agency that would give this diverse project 174 the direction and unity it needs. The urban development corporation can acquire the necessary land and sub-acqueous terrain then, in turn, allow the Sea and Shore Fisheries Department to lease this property to a private operator for com- mercial aquaculture purposes. The urban development corporation could contract for construction of a nuclear power plant with a public power authority on condi- tion that certain "effluent services" be provided to the commercial land and sea farm operators. The entire package would be reviewed by the Environmental Im- provement Commission (E.I.C.), for consistency with site and pollution regula- tions as well as for consistency with the comprehensive Coastal Plan. This discussion has presumed the completion of state governmental reform measures, such as those outlined for the proposed Natural Resources Department presently before the 105th Maine Legislature. The reorganization problem is summarized in the following excerpts from an extensive study report covering governmental agencies as they relate to marine resource management: "There is no long range over-all direction or supervision of the manage- ment of natural resources or marine resources in this State. The State Planning Office, when it becomes fully operative, by statutes should be the possessor of a comprehensive plan for natural resources and the overseer of the execution of such a plan. This, however, is hardly a substitute for a working line agency. . . A consolidation of State agencies would allow for more orderly planning in carry- ing out this task... If all the agencies were in the same boat, this might make a more interesting voyage"' The consolidation of approximately twelve existing agencies into a natural resources department, the addition of clarifying legislation and new mechanisms such as a U.D.C. would be a logical governmental extension to meet the needs of effective governmental action. These improvements are within the scope of legis- lative delegation of power and responsibility and would aid in the carrying out of projects long contemplated but thwarted due to institutional weakness and inflexi- bility. Conceptually Governmental reorganization was accepted and passed in the closing hours of the Maine 105th Legislature. The U.D.C. could work jointly in the field of multi-use projects with other departments in addition to a Natural Resources Department. However, if as expected primary program responsibility for coastal resource management falls to a Natural Resources Department, the greatest impact of the U.D.C, on coastal development would be in relation to projects coordinated within and by this agency. Maine Land Development Authority Placed before the 105th Maine Legislature was a proposed Maine Land Development Authority (M.L.D.A.) which combined elements of both the New York Urban Development Corporation and the Advisory Commission on Inter- governmental Relations L.D.A. The M.L.D.A. proposal created a body politic similar to New York's Urban Development Corporation with board of directors of nine members to include the Commissioner of the Department of Economic 175 Development with the balance chosen by the Governor with the advice and consent of the Governor's Executive Council. The eight-at-large members have four year terms. The bill stated the need to cope with problems of both rural and urban development. Commercial, industrial and residential development were mentioned in the statement of intent but not the term recreation. The initial biennium appropriation for the M.L.D.A. called for $184,000 and The Department of Economic Development planned to utilize the law to further the idea of its area industrial parks. The M.L.D.A. also mentioned explicitly the concept of implementation of new towns - a highly feasible component of the multiple-use proposal made as part of this report. The M.L.D.A. was how- ever defeated by the 105th legislature. The proposed M.L.D.A. also allowed the forming of subsidiaries (with the approval of the Governor) made up of a town, county, or city or a combination thereof. Implementation And The Planning Process Pragmatic approaches to planning and implementation are aimed at welding plans and performance, promises and real policies, and proposed rules and actual execution. For example, if housing goals are suggested by an accepted plan, if a fixed amount of money is appropriated, if definite policy is set down by a gov- erning body; then if objectives can be met via such action of the governing body, then - and only then - can results that are measurable be expected to occur. What we are speaking of here is the concept that government cannot be held responsible for idealistic goals, but it can be held accountable for failing to at- tain stated objectives or specific program accomplishment if appropriate resources are allocated. More important, stated objectives can be measurable thus provid- ing a significant improvement over governmental accountability. There is, however, as yet no state comprehensive policies plan. Few if any local and regional plans include measurable accountable goals and objectives. The future of Maine's economy has been implicitly, closely tied to recreational devel- opment primarily within coastal and mountain land areas. Yet none of these development directions have been openly and carefully evaluated in terms of other development possibilities which might be more beneficial. It is thus diffi- cult to assess the actual nature and capability of the implementing agencies that currently affect the coast. Implementation and coordination mechanisms as part of new institutions such as a U.D.C. as well as proper accountability are all factors of importance which would be available and are needed for defining and strengthening a rational course for Maine's coastal economic and social structure. 178 Summary And Conclusions The development corporation proposed has the power to assemble land and diverse interests for integrated development of multi-use facilities. This factor is not present in the authorization of any existing State agency. As a practical matter the broad grant of power to a development corporation would be balanced through the mechanisms of public opinion, local public atti- tudes and reactions, as well as the ability of the State government itself to exert its authority and influence over the agency. It is quite clear that many of the tasks facing a development corporation would be far beyond its initial capability (whether Maine, New York, or any other state) for some time to come in terms of the State's needs and the resources that could be reasonably developed by the corporation to meet those needs. A clear advaitage of the Urban Development Corporation approach is the ease of devising working arrangements with public and private agencies for land aggregation and development. The development corporation can act as a devel- opment tool for other departments of the government thus, further centralizing functions and cutting down on the need for duplicating the eminent domain process among state departments and bureaus. While discussion has centered on the State level impact of the U.D.C., it has considerable potential for spurring local areas into action as well as providing the mechanism for local participation within regional Urban Development Corpo- rations (U.D.C.). Local U.D.C.'s should at least allow minority membership on its governing board plus the opportunity for advisory citizen group involvement. Ownership or profit sharing in the Corporation by area residents should also be an integral part of such an institution. Further, the availability of a powerful local tool for development could well spur greater local development activity, and possibly the desirable shift of some state projects to the regional level. In the past, local implementary structures have been weak or non-existent. The U.D.C. at the regional level could alleviate this lack of flexibility of local institutions. One of the first areas of operation of a local U.D.C. could be in existing or plan- ned industrial parks and recreation areas. The U,D.C. presents a potentially effective organization for the initiation of local and regional, as well 'as State, development. This discussion has emphasized the importance of the U.D.C. because it has those characteristics needed to coordinate sometimes incompatible and often di- verse multiple uses and to simplify public-private cooperative developments. In addition, the U.D.C. would also aid greatly in bridging the gap between promises and action (i.e., accountability) that often occurs in state government. Both these aspects are considered essential for coastal development of a necessarily high quality. FOOTNOTES - IMPLEMENTING COASTAL DEVELOPMENT POLICIES 1 Maine Law Affecting Marine Resources, Vol. 1, "State Government Organization: Agencies Dealing with Marine Resources," Harriet P. Henry et. al., (Portland: 1969) pp. 140-141. 177 PARTICIPANTS Project Director ..-----..........._ .. .Philip M. Savage State Planning Office Project Planner - - -.... . ..................... Ronald A. Poitras State Planning Office Planning Associates ---_.... ........ ..-Anthony Buxton State Planning Office Anthony Redington State Planning Office Burton Anderson State Planning Office Consultants ---...... --....-.... On Petroleum - Jon Austad, Anthony Slocumn Anderson - Nichols Inc. On Aquaculture & the Law - Harriet P. Henry On Recreation - Carl Veazie Public Affairs Research Center On Multiple-Use Concept - William Reed Reed & D'Andrea Associates Providing Editing Assistance Jon Austad Anderson - Nichols Inc. Photography by - Martin Meltz 178