Notice2021-23800
Call for Information and Nominations-Commercial Leasing for Wind Power Development on the Outer Continental Shelf in the Gulf of Mexico
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 1, 2021
Issuing agencies
Interior DepartmentOcean Energy Management Bureau
Abstract
In June 2021, the Bureau of Ocean Energy Management (BOEM) issued a request for interest (RFI) to gauge specific interest in obtaining commercial wind energy leases in an area on the Outer Continental Shelf (OCS) in the Gulf of Mexico (GOM). Based on the expressions of interest received in response to the RFI, BOEM has determined that competitive interest exists in the area identified. This call for information and nominations ("Call" or "notice") initiates the competitive leasing process on the GOM OCS for the area identified herein. The publication of this Call does not mean that BOEM will ultimately grant a lease to any particular party in the area identified in the GOM OCS. Rather, the publication of this Call indicates that the area described ("Call Area") may be subject to future leasing.
Full Text
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<title>Federal Register, Volume 86 Issue 208 (Monday, November 1, 2021)</title>
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[Federal Register Volume 86, Number 208 (Monday, November 1, 2021)]
[Notices]
[Pages 60283-60287]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-23800]
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DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
[Docket No. BOEM-2021-0077]
Call for Information and Nominations--Commercial Leasing for Wind
Power Development on the Outer Continental Shelf in the Gulf of Mexico
AGENCY: Bureau of Ocean Energy Management, Interior.
ACTION: Call for information and nominations; request for comments.
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SUMMARY: In June 2021, the Bureau of Ocean Energy Management (BOEM)
issued a request for interest (RFI) to gauge specific interest in
obtaining commercial wind energy leases in an area on the Outer
Continental Shelf (OCS) in the Gulf of Mexico (GOM). Based on the
expressions of interest received in response to the RFI, BOEM has
determined that competitive interest exists in the area identified.
This call for information and nominations (``Call'' or ``notice'')
initiates the competitive leasing process on the GOM OCS for the area
identified herein. The publication of this Call does not mean that BOEM
will ultimately grant a lease to any particular party in the area
identified in the GOM OCS. Rather, the publication of this Call
indicates that the area described (``Call Area'') may be subject to
future leasing.
DATES: Submissions indicating your nomination or interest in or
providing comments on commercial leasing within the Call Area must be
received no later than December 16, 2021. Late submissions may not be
considered.
ADDRESSES: Please submit nomination or interest information as
discussed under the Supplementary Information heading in the section
entitled ``Required Nomination Information'' via U.S. Postal Service,
Fedex, UPS, or any other mail carrier to: Bureau of Ocean Energy
Management, Office of Emerging Programs, 1201 Elmwood Park Boulevard,
New Orleans, Louisiana 70123. In addition to a paper copy, please
include an electronic copy on any digital data storage device. Do not
submit nominations via the Federal eRulemaking Portal.
Please submit comments and other information as discussed in the
section entitled ``Requested Information from Interested or Affected
Parties'' under Supplementary Information by either of the following
two methods:
1. Federal eRulemaking Portal: <a href="http://www.regulations.gov">http://www.regulations.gov</a>. In the
search box at the top of the web page, enter BOEM-2021-0077 and then
click ``search.'' Follow the instructions to submit public comments and
view supporting and related materials.
2. U.S. Postal Service or other mail delivery service. Send your
comments and other information to the following address: Bureau of
Ocean Energy Management, Office of Emerging Programs, 1201 Elmwood Park
Boulevard, New Orleans, Louisiana 70123.
For information about submitting public comments, please see the
section under Supplementary Information entitled ``Protection of
Privileged, Personal, or Confidential Information.''
FOR FURTHER INFORMATION CONTACT: Tershara Matthews, Chief, Office of
Emerging Programs, 1201 Elmwood Park Boulevard, New Orleans, Louisiana
70123, (504) 736-2676 or <a href="/cdn-cgi/l/email-protection#3044554243585142511e5d5144445855474370525f555d1e575f46"><span class="__cf_email__" data-cfemail="8bffeef9f8e3eaf9eaa5e6eaffffe3eefcf8cbe9e4eee6a5ece4fd">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
1. Authority
43 U.S.C. 1337(p)(3); 30 CFR 585.210 and 585.211.
2. Purpose
BOEM is using this notice both to solicit lease nominations beyond
those identified in response to the earlier RFI and to request comments
from interested and affected parties regarding site conditions,
resources, and uses of the identified area that would be relevant to
BOEM's potential leasing and development authorization process. Those
interested in leasing within the Call Area for a commercial wind energy
project should provide detailed and specific information described in
the section 5 of this Call entitled ``Required Nomination
Information.'' Those interested in providing public comments and
information regarding site conditions, resources, and multiple uses in
close proximity to, or within, the Call Area should provide information
requested in the section 4 of this Call entitled ``Requested
Information from Interested or Affected Parties.'' Any nominations,
expressions of interest, or any other information and comments that
were previously submitted in response to the RFI do not need to be
resubmitted. BOEM will consider previously submitted nominations,
expressions of interest, and any other information and comments along
with any information received in response to this notice
BOEM is also preparing an environmental assessment, which will
analyze leasing and reasonably foreseeable site assessment activities.
Additional opportunities will be provided for public involvement during
[[Page 60284]]
the environmental assessment process. See the section of this Call
entitled ``BOEM's Environmental Review Process.''
The Call Area was established in consultation with BOEM's GOM
Intergovernmental Renewable Energy Task Force. Comments received in
response to the RFI also were considered when delineating the Call
Area. A detailed description of the Call Area is found in section 3
below.
The OCS Lands Act requires BOEM to award leases competitively,
unless BOEM determines that there is no competitive interest (43 U.S.C.
1337(p)(3)). BOEM has determined that competitive interest exists in
the identified Call area. BOEM now solicits nominations for any
additional areas not previously identified as being of interest for
obtaining a lease in the Call Area and requests information from
interested and affected parties on issues relevant to BOEM's review of
nominations for potential leases.
The responses to this Call could lead BOEM to proceed with the
competitive leasing process in some parts of the Call Area (i.e., where
competition exists) and a noncompetitive process in other parts of the
Call Area (i.e., where no competitive interest exists). The leasing
process is described more thoroughly under the ``Determination of
Competitive Interest'' and ``Noncompetitive Leasing Process'' sections
of this Call. In any parts of the Call Area where an entity has
nominated or identified an area of interest for a possible lease and
where no competing submissions exist, BOEM may proceed with the
noncompetitive lease process pursuant to BOEM's regulations at 30 CFR
585.232. If BOEM determines that competitive interest exists in some or
all of the Call Area, then BOEM may proceed with area identification
under 30 CFR 585.211(b) and the competitive leasing process under 30
CFR 585.211 through 585.225.
Whether issued through a competitive or noncompetitive process, a
lease does not grant the lessee the right to construct any facilities
on the OCS. The lease only grants the lessee the exclusive right to
submit site assessment and development plans to BOEM. BOEM must approve
these plans before the lessee may proceed to the next stages of lease
development (30 CFR 585.600 and 585.601).
Whether competitive or noncompetitive, the leasing process will
include subsequent opportunities for public input and review of any
proposed actions for potential environmental impacts and multiple use
conflicts. BOEM has not yet determined which areas may be offered for
lease, if any. Further, BOEM may include less than the total footprint
of the Call Area in any leasing decision or may offer no areas for
leasing at all.
3. Description of Call Area
The Call Area comprises the area located seaward of the Gulf of
Mexico Submerged Lands Act boundary, bounded on the east by the north-
south line located at 89.858[deg] W longitude, and bounded on the south
by the 400-meter bathymetry contour and the United States-Mexico
maritime boundary established by the Treaty between the Government of
the United States of America and the Government of the United Mexican
States on the Delimitation of the Continental Shelf in the Western Gulf
of Mexico beyond 200 Nautical Miles, which took effect in January 2001.
The area for potential wind energy leasing consists of approximately
29,901,285 acres. BOEM may issue an additional Call for areas in water
depths between 400 meters and 1,300 meters when a better understanding
exists of the competitive interest for floating wind energy development
in the GOM.
4. Requested Information From Interested or Affected Parties
On June 11, 2021, BOEM published in the Federal Register the
``Request for Interest in Commercial Leasing for Wind Power Development
on the Gulf of Mexico Outer Continental Shelf (OCS)'' (86 FR 31339).
Any information that was previously submitted in response to the
section of that RFI entitled ``Requested Information from Interested or
Affected Parties'' does not need to be resubmitted; BOEM will consider
it along with any information received in response to this notice.
BOEM requests specific and detailed comments from the public and
other interested or affected parties regarding the following features,
activities, mitigations, or concerns within or around the Call Area:
a. Geological, geophysical, and biological bathymetric conditions
(including bottom and shallow hazards and live bottom).
b. Known archaeological and cultural resource sites on the seabed.
c. Information regarding the identification of historic properties
or potential effects to historic properties from leasing, site
assessment activities (including the construction of meteorological
towers or the installation of meteorological buoys), or commercial wind
energy development in the areas identified in the Call Area. This
includes potential offshore archaeological sites or other historic
properties within the areas described in this notice and also onshore
historic properties that could potentially be affected by renewable
energy activities within the Call Areas. This information will inform
BOEM's review of future undertakings under section 106 of the National
Historic Preservation Act (NHPA) and under the National Environmental
Policy Act (NEPA).
d. Information about potentially conflicting uses of the Call Area,
including navigation (in particular, commercial and recreational vessel
use), recreation, and fisheries (commercial and recreational).
Additional information regarding recreational and commercial fisheries
including, but not limited to, the use of the areas, the types of
fishing gear used, seasonal use, and recommendations for reducing use
conflicts.
e. Information regarding the identification of protected species,
federally designated (or proposed) critical habitat, essential fish
habitat, or areas that are environmentally sensitive or crucial to
marine productivity and are State or federally managed for their
conservation value.
f. Available and pertinent data and information concerning
renewable energy resources and environmental conditions. Where
applicable, spatial information should be submitted in a format
compatible with ArcGIS 10.8.1 in a geographic coordinate system (NAD
27).
g. Information relating to visual resources and aesthetics, the
potential impacts of wind turbines and associated infrastructure on
those resources, and potential strategies to help mitigate or minimize
any visual effects.
h. Other relevant socioeconomic, cultural, biological, and
environmental information.
i. Any other relevant information BOEM should consider during its
planning and decision-making process for the purpose of issuing leases
in the Call Area.
j. BOEM is interested in understanding potential opportunities for
all types of renewable energy development in the GOM. Please provide
information to develop an understanding of the potential opportunities
or interest in developing clean energy in the area. BOEM would like
information on the economic viability of offshore renewable energy in
the GOM, the potential insurance support, private equity investment,
capacity of grid expansion, transmission concerns, and any positive net
value analysis for industry support. Specifically,
[[Page 60285]]
<bullet> Is development and production of offshore wind energy
feasible when compared to the cost of electricity in GOM coastal
States?
<bullet> What impetus is necessary for utility companies located
along the GOM to purchase offshore wind energy?
<bullet> What could make offshore wind energy development in the
GOM more attractive to investors?
<bullet> What could make offshore wind energy development in the
GOM more attractive to consumers?
<bullet> What is the viability, economic or otherwise, of using
offshore wind to power green hydrogen production in the GOM?
<bullet> What is the economic viability of offshore wind energy in
the GOM considering turbine size, hurricane class turbines, fixed
charge rates, and insurance costs?
<bullet> What are the most viable locations for offshore wind
energy projects in the GOM based on water depth, wind resources,
turbine size, distance to port, and interconnection?
<bullet> What are the transmission constraints, known or
anticipated, and advantages, including but not limited to points of
interconnection, load, etc., in the GOM?
5. Required Nomination Information
If you wish to nominate one or more areas for a commercial wind
energy lease within the Call Area, you must provide the following
information for each nomination. Any nominations or information
submitted in response to the RFI section entitled ``Required Indication
of Interest Information,'' does not need to be resubmitted; BOEM will
consider it along with any information received in response to this
notice.
a. The BOEM leasing map name and number, or official protraction
diagram number, and the specific whole or partial OCS blocks within the
Call Area that you are interested in leasing. This information should
be submitted as a spatial file compatible with ArcGIS 10.8.1 in a
geographic coordinate system (NAD 27) in addition to your hard copy
submittal. If your nomination includes one or more partial blocks,
please describe those partial blocks in terms of a sixteenth (i.e.,
sub-block) of an OCS block.
b. A description of your objectives and the facilities that you
would use to achieve those objectives.
c. A preliminary schedule of proposed activities, including those
leading to commercial operations.
d. Available and pertinent data and information concerning
renewable energy resources and environmental conditions in each area
that you wish to lease, including energy and resource data and
information used to evaluate the area. Where applicable, spatial
information should be submitted in a format compatible with ArcGIS
10.8.1 in a geographic coordinate system (NAD 27).
e. Documentation demonstrating that you are legally qualified to
hold a lease in accordance with the requirements in 30 CFR 585.106 and
585.107(c). Examples of the documentation appropriate for demonstrating
your legal qualifications and related guidance can be found in BOEM's
``Qualification Guidelines to Acquire and Hold Renewable Energy Leases
and Grants and Alternate Use Grants on the U.S. Outer Continental
Shelf,'' available at <a href="http://www.boem.gov/Renewable-Energy-Program/Regulatory-Information/QualificationGuidelines-pdf.aspx">http://www.boem.gov/Renewable-Energy-Program/Regulatory-Information/QualificationGuidelines-pdf.aspx</a>. Legal
qualification documents that you provide to BOEM may be made available
for public review. If you wish that any part of your legal
qualification documentation be kept confidential, clearly identify what
should be kept confidential and submit it under separate cover (see
section 6 of this Call entitled ``Protection of Privileged, Personal,
or Confidential Information Section,'' below).
f. Documentation demonstrating that you are technically and
financially capable of constructing, operating, maintaining, and
decommissioning the commercial wind energy facility described in your
submission in accordance with 30 CFR 585.107(a). Guidance regarding the
documentation to demonstrate your technical and financial
qualifications can be found in ``Qualification Guidelines to Acquire
and Hold Renewable Energy Leases and Grants and Alternate Use Grants on
the U.S. Outer Continental Shelf,'' available at: <a href="http://www.boem.gov/Renewable-Energy-Program/Regulatory-Information/QualificationGuidelines-pdf.aspx">http://www.boem.gov/Renewable-Energy-Program/Regulatory-Information/QualificationGuidelines-pdf.aspx</a>. Any documentation you submit to
demonstrate your legal, technical, and financial qualifications must be
provided to BOEM in both paper and electronic formats. BOEM considers
an Adobe PDF file on a media storage device to be an acceptable format
for an electronic copy.
6. Protection of Privileged, Personal, or Confidential Information
a. Freedom of Information Act
BOEM will protect your privileged or confidential information in
accordance with the Freedom of Information Act (FOIA). Exemption 4 of
FOIA applies to trade secrets and commercial or financial information
that is privileged or confidential. If you wish to protect the
confidentiality of such information, clearly label it and request that
BOEM treat it as confidential. BOEM will not disclose such information
if BOEM determines under 30 CFR 585.113(b) that it qualifies for
exemption from disclosure under FOIA. Please label privileged or
confidential information with the words ``Contains Confidential
Information'' and consider submitting such information as a separate
attachment.
BOEM will not treat as confidential any aggregate summaries of such
information or comments not containing such privileged or confidential
information. Additionally, BOEM will not treat as confidential (1) the
legal title of the nominating entity (for example, the name of your
company), or (2) the list of whole or partial blocks that you are
nominating. Information that is not labeled as privileged or
confidential may be regarded by BOEM as suitable for public release.
b. Personally Identifiable Information
BOEM does not consider anonymous comments; please include your name
and address as part of your comment. You should be aware that your
entire comment, including your name, address, and any personally
identifiable information (PII) included in your comment may be made
publicly available. All submissions from identified individuals,
businesses, and organizations will be available for public viewing on
<a href="http://regulations.gov">regulations.gov</a>. For BOEM to withhold your PII from disclosure, you
must identify any information contained in your comments that, if
released, would constitute a clearly unwarranted invasion of your
personal privacy. You must also briefly describe any possible harmful
consequences of the disclosure of information, such as embarrassment,
injury, or other harm.
c. Section 304 of NHPA (54 U.S.C. 307103(a))
After consultation with the Secretary of the Interior, BOEM is
required to withhold the location, character, or ownership of historic
resources if it determines that disclosure may, among other things,
risk harm to the historic resources or impede the use of a traditional
religious site by practitioners. Tribal entities should designate in
their submissions information that falls under section 304 of NHPA as
confidential.
[[Page 60286]]
7. BOEM's Environmental Review Process
Before deciding whether and where leases may be issued, BOEM will
prepare an environmental assessment (EA) under the NEPA process,
including a public scoping period to determine the scope of the EA and
a public review and comment period on the draft EA. The EA will
consider the reasonably foreseeable environmental consequences
associated with leasing, such as site characterization activities
(including geophysical, geotechnical, archaeological, and biological
surveys) and site assessment activities (including installation of a
meteorological tower or meteorological buoy). BOEM also will conduct
consultations to consider the environmental consequences associated
with issuing commercial wind energy leases within the Call Area. These
consultations include, but are not limited to, those required by the
Coastal Zone Management Act, the Endangered Species Act, the Magnuson-
Stevens Fishery Conservation and Management Act, section 106 of NHPA,
and Executive Order 13175--``Consultation and Coordination with Indian
Tribal Governments.'' Through the NEPA and consultation process, BOEM
may evaluate mitigation measures to minimize possible impacts resulting
from potential project activities to resources, such as migratory
birds, marine mammals, and sea turtles.
Before BOEM allows a lessee to begin construction of a wind energy
project on a lease issued within the Call Area, BOEM will consider the
potential environmental effects of the construction and operation of
any wind energy facility under a separate, project-specific NEPA
process. This separate NEPA process will include additional
opportunities for public involvement and likely will result in the
publication of an environmental impact statement.
8. BOEM's Planning and Leasing Process
1. Determination of Competitive Interest: Subsection 8(p)(3) of the
OCS Lands Act (43 U.S.C. 1337(p)(3)) states that ``the Secretary shall
issue a lease, easement, or right-of-way . . . on a competitive basis
unless the Secretary determines after public notice of a proposed
lease, easement, or right-of-way that there is no competitive
interest.'' Accordingly, BOEM must first determine whether competitive
interest exists in acquiring a lease within the Call Area to develop
offshore wind energy. At the conclusion of the comment period for this
Call, BOEM will review the Call and RFI nominations received and
determine if competitive interest exists in any part area of the Call
Area.
For areas with two or more valid nominations, BOEM may consider
proceeding with competitive leasing as described in section 8.2 of this
Call entitled ``Competitive Leasing Process.'' For areas where BOEM
determines that there is only one interested entity, BOEM may consider
proceeding with noncompetitive leasing, as described in section 8.3
entitled ``Noncompetitive Leasing Process.''
If BOEM determines that competitive interest exists and that those
areas are appropriate to lease, BOEM may hold one or more competitive
lease sales for those areas. In the event BOEM holds a lease sale, all
qualified bidders, including bidders that did not submit a nomination
in response to this Call or the RFI, will be able to participate in the
lease sale.
BOEM reserves the right to not lease nominated areas or to modify
nominated areas before offering them for lease.
2. Competitive Leasing Process: BOEM will follow these steps
required by 30 CFR 585.211 through 585.225 if it decides to proceed
with the competitive leasing process:
(a) Area Identification: Based on the information received in
response to this Call and the RFI, BOEM will determine the level of
commercial interest and will identify the areas that would be
appropriate to analyze for potential leasing. The areas identified will
constitute wind energy areas (WEA) and will be subject to an EA as
described in section 7 above, in consultation with appropriate Federal
agencies, federally recognized Tribes, State and local governments, and
other interested parties.
(b) Proposed Sale Notice (PSN): If BOEM decides to proceed with a
competitive lease sale within the WEA after completion of its EA and
consultations, BOEM will publish a PSN in the Federal Register with a
comment period of 60 days. The PSN will describe the areas BOEM intends
to offer for leasing and the proposed conditions of sale, auction
format, and lease instrument, including lease addenda. Additionally,
the PSN will describe the criteria and process for evaluating bids in
the auction.
(c) Final Sale Notice (FSN): After considering the comments on the
PSN, if BOEM decides to proceed with a competitive lease sale, it will
publish a FSN in the Federal Register at least 30 days before the date
of the lease sale.
(d) Bid Submission and Evaluation: Following publication of the FSN
in the Federal Register, BOEM will offer the lease areas through a
competitive sale process, using procedures specified in the FSN.
Afterwards, BOEM will review the sale, including bids and bid deposits,
for technical and legal adequacy. BOEM will ensure that bidders have
complied with the FSN and all applicable regulations. BOEM reserves the
rights to reject any or all bids and to withdraw its offer to lease an
area, even after bids have been submitted.
(e) Issuance of a Lease: Following identification of the winning
bid on a lease area, BOEM will notify the successful bidder and will
provide lease documents for signature. BOEM requires a successful
bidder to sign and return the lease documents, pay the remainder of the
bonus bid, if applicable, and file the required financial assurance
within 10-business days of receiving the lease documents. Upon receipt
of the required payments, financial assurance, and properly signed
lease documents, BOEM may execute a lease with the successful bidder.
3. Noncompetitive Leasing Process: BOEM will follow these steps if
it decides to proceed with a noncompetitive leasing process:
(a) Determination of No Competitive Interest: If, after evaluating
all relevant information, including responses to this Call and the RFI,
BOEM determines competitive interest does not exist in all or a portion
of the Call Area, it may proceed with noncompetitive leasing under 30
CFR 585.231 and 585.232. BOEM will seek to determine if the sole
respondent who nominated a particular area intends to proceed with
acquiring the lease. If so, the respondent must submit an acquisition
fee as specified in 30 CFR 585.502(a). After the acquisition fee is
paid, BOEM will follow the process outlined in 30 CFR 585.231(d)
through (i), which includes the publication of a determination of no
competitive interest in the Federal Register.
(b) Review of Lease Request: BOEM will complete an EA and required
consultations as discussed in section 7 before issuing a lease
noncompetitively. Specifically, BOEM will coordinate and consult, as
appropriate, with relevant Federal agencies, federally recognized
Tribes, affected State and local governments, and other affected or
interested parties in formulating lease terms, conditions, and
stipulations.
(c) Lease Issuance: After completing its review of the lease
request, BOEM may offer a noncompetitive lease. Within 10-business days
of receiving the lease documents, the respondent must sign them and
provide a $100,000 lease-
[[Page 60287]]
specific bond, under 30 CFR 585.515, to guarantee compliance with all
terms and conditions of the lease. Within 45 days of receiving the
lease documents, the respondent must pay the first 12 months' rent
pursuant to 30 CFR 585.231(g)(2).
Amanda Lefton,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2021-23800 Filed 10-29-21; 8:45 am]
BILLING CODE 4310-MR-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.