Notice2022-00504
Atlantic Wind Lease Sale 8 (ATLW-8) for Commercial Leasing for Wind Power on the Outer Continental Shelf (OCS) in the New York (NY) Bight-Final Sale Notice (FSN)
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
January 14, 2022
Issuing agencies
Interior DepartmentOcean Energy Management Bureau
Abstract
This FSN contains information pertaining to the areas available for commercial wind energy leasing on the OCS in the NY Bight. Specifically, this FSN details certain provisions and conditions of the leases, auction details, the lease form, criteria for evaluating competing bids, award procedures, appeal procedures, and lease execution. The Bureau of Ocean Energy Management (BOEM) will offer six leases: Lease OCS-A 0537, Lease OCS-A 0538, Lease OCS-A 0539, Lease OCS-A 0541, Lease OCS-A 0542, and Lease OCS-A 0544 (Lease Areas). The issuance of any lease resulting from this sale would not constitute an approval of project-specific plans to develop offshore wind energy. Such plans, if submitted by the lessee, would be subject to subsequent environmental, technical, and public reviews prior to a decision on whether the proposed development should be authorized.
Full Text
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<title>Federal Register, Volume 87 Issue 10 (Friday, January 14, 2022)</title>
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[Federal Register Volume 87, Number 10 (Friday, January 14, 2022)]
[Notices]
[Pages 2446-2456]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-00504]
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DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
[Docket No. BOEM-2022-0001]
Atlantic Wind Lease Sale 8 (ATLW-8) for Commercial Leasing for
Wind Power on the Outer Continental Shelf (OCS) in the New York (NY)
Bight--Final Sale Notice (FSN)
AGENCY: Bureau of Ocean Energy Management, Interior.
ACTION: Final sale notice.
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SUMMARY: This FSN contains information pertaining to the areas
available for commercial wind energy leasing on the OCS in the NY
Bight. Specifically, this FSN details certain provisions and conditions
of the leases, auction details, the lease form, criteria for evaluating
competing bids, award procedures, appeal procedures, and lease
execution. The Bureau of Ocean Energy Management (BOEM) will offer six
leases: Lease OCS-A 0537, Lease OCS-A 0538, Lease OCS-A 0539, Lease
OCS-A 0541, Lease OCS-A 0542, and Lease OCS-A 0544 (Lease Areas). The
issuance of any lease resulting from this sale would not constitute an
approval of project-specific plans to develop offshore wind energy.
Such plans, if submitted by the lessee, would be subject to subsequent
environmental, technical, and public reviews prior to a decision on
whether the proposed development should be authorized.
DATES: BOEM will hold an online mock auction for potential bidders
starting at 9:00 a.m. eastern standard time (EST) on February 18, 2022.
The monetary auction will be held online and will begin at 9:00 a.m.
EST on February 23,
[[Page 2447]]
2022. Additional details are provided in the section entitled
``Deadlines and Milestones for Bidders.''
FOR FURTHER INFORMATION CONTACT: Luke Feinberg, BOEM Office of
Renewable Energy Programs, 45600 Woodland Road, VAM-OREP, Sterling,
Virginia 20166, (571) 474-7616, or <a href="/cdn-cgi/l/email-protection#7f130a141a51191a16111d1a0d183f1d101a1251181009"><span class="__cf_email__" data-cfemail="caa6bfa1afe4acafa3a4a8afb8ad8aa8a5afa7e4ada5bc">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background: BOEM published a Call for Information and
Nominations (Call) for an area of 1,735,154 acres in the NY Bight in
April of 2018 (83 FR 15602). Based on the information received in
response to that notice and consultation with ocean users, BOEM
identified Wind Energy Areas (WEA) in March 2021 encompassing 807,383
acres. This lease sale was proposed by BOEM on June 14, 2021, through a
Proposed Sale Notice (PSN), which encompassed 627,331 acres and was
published in the Federal Register (86 FR 31524). A 60-day comment
period followed. BOEM received 134 comment submissions in response to
the PSN, which are available on <a href="http://regulations.gov">regulations.gov</a> (Docket ID: BOEM-2021-
0033) at: <a href="https://www.regulations.gov/document/BOEM-2021-0033-0001">https://www.regulations.gov/document/BOEM-2021-0033-0001</a>.
BOEM has posted its responses to comments submitted during the PSN
comment period. The document, entitled Response to Comments, can be
found through BOEM's website at: <a href="https://www.boem.gov/Commercial-Wind-Leasing/NYBight/">https://www.boem.gov/Commercial-Wind-Leasing/NYBight/</a>.
In response to the comments received, BOEM made several changes
from the description of the NY Bight lease sale that was published in
the PSN. The primary change is a reorientation of lease area boundaries
resulting in six areas being offered for sale, which is further
explained in Section IV--Area Offered for Leasing. Overall, BOEM has
deconflicted and reduced the initial 1,735,154 acres proposed in the
Call by 72% to 488,201 acres offered for sale through this notice,
including most recently a 22% reduction from the total lease acreage in
the PSN to the final lease acreage in this FSN. This final reduction
culminated an effort to address concerns raised by Tribes, partnering
agencies, and the public through the comment period and targeted
outreach. In addition, a number of lease stipulations were developed,
or refined, based on feedback solicited in the PSN, including
provisions to: advance engagement and coordination with federally
recognized Tribes, ocean users, other agencies, underserved
communities, and other interested stakeholders; advance flexibility in
transmission planning; advance the domestic supply chain; and promote
the use of project labor agreements (PLAs). In response to feedback
from the PSN, BOEM will also limit the number of leases that any bidder
can win to one.
II. List of Eligible Bidders: BOEM has determined that the
following 25 entities are legally, technically, and financially
qualified to hold a commercial wind lease in the NY Bight pursuant to
30 CFR 585.106 and 107, and therefore, may participate in this lease
sale as bidders subject to meeting the requirements outlined in this
notice:
------------------------------------------------------------------------
Company
Company name No.
------------------------------------------------------------------------
547 Energy LLC............................................... 15123
Arevia Power LLC............................................. 15129
Atlantic Shores Offshore Wind Bight, LLC..................... 15119
Attentive Energy LLC......................................... 15115
Avangrid Renewables, LLC..................................... 15019
Bight Wind Holdings, LLC..................................... 15112
BP US Offshore Wind Energy LLC............................... 15122
CPV Offshore Wind LP......................................... 15114
Diamond Wind North America, LLC.............................. 15113
East Wind LLC................................................ 15076
EDF Renewables Development, Inc.............................. 15027
Equinor Wind US LLC.......................................... 15058
GIG Infrastructure HoldCo, LLC............................... 15125
GW Offshore Wind LLC......................................... 15121
Horizon Wind Power LLC....................................... 15081
Invenergy Wind Offshore LLC.................................. 15091
Mid-Atlantic Offshore Wind LLC............................... 15118
OW Ocean Winds East, LLC..................................... 15096
PNE USA, Inc................................................. 15056
PSEG Renewable Generation LLC................................ 15132
RWE Offshore Wind Holdings, LLC.............................. 15061
SSE Renewables North America Offshore Wind LLC............... 15124
US Mainstream Offshore LLC................................... 15120
US Mainstream Renewable Power Inc............................ 15089
US Wind Inc.................................................. 15023
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a. Affiliated Entities: On the Bidder's Financial Form (BFF)
discussed below, eligible bidders must list any eligible bidders with
whom they are affiliated. Affiliated eligible bidders are not permitted
to compete against each other in the lease sale and must decide by the
start of the auction which eligible bidder (if any) will participate.
One bidder may bid on behalf of a planned joint entity provided the
other entity is not a participant in the lease sale. If two or more
affiliated bidders participate in the auction, BOEM may disqualify some
or all such bidders from the auction.
BOEM considers two entities to be affiliated if they meet the
definition of affiliate in 30 CFR 1206.20, as applicable, or if they
are both direct, or indirect, subsidiaries of the same parent company.
III. Deadlines and Milestones for Bidders: This section describes
the major deadlines and milestones in the auction process from
publication of this FSN to execution of the lease pursuant to this
sale. These are organized into various stages: The FSN Waiting Period;
Conducting the Auction; and From the Auction to Lease Execution.
a. FSN Waiting Period:
i. Bidder's Financial Form: Each bidder must submit a BFF to BOEM
to participate in the auction. BOEM must receive each BFF no later than
January 26, 2022. If a bidder does not submit a BFF by this deadline,
BOEM, in its sole discretion, may grant an extension to that bidder
only if BOEM determines the bidder's failure to timely submit a BFF was
caused by events beyond the bidder's control. The BFF can be downloaded
at: <a href="https://www.boem.gov/renewable-energy/state-activities/new-york-bight">https://www.boem.gov/renewable-energy/state-activities/new-york-bight</a>. Once BOEM has processed a BFF, the bidder may log into <a href="http://pay.gov">pay.gov</a>
and submit a bid deposit. For purposes of this auction, BOEM will not
consider any BFFs submitted by bidders for previous lease sales. BOEM
will only accept an originally executed paper copy of the BFF. The BFF
must be executed by an authorized representative listed on the bidder's
legal qualifications. Each bidder is required to sign the self-
certification in the BFF, in accordance with 18 U.S.C. 1001 (Fraud and
False Statements).
ii. Bid Deposit: Each bidder must provide a bid deposit of
$5,000,000 no later than February 9, 2022 in order to participate in
the mock auction and the monetary auction. BOEM will consider
extensions to this deadline only if BOEM determines that the failure to
timely submit the bid deposit was caused by events beyond the bidder's
control. Further information about bid deposits can be found in the
``Bid Deposit'' section of this notice.
b. Conducting the Auction:
i. Mock Auction: BOEM will hold a Mock Auction on February 18, 2022
beginning at 9:00 a.m. EST. The Mock Auction will be held online. BOEM
will contact each bidder that has timely filed a BFF and bid deposit
and provide instructions for participation. Only bidders that have
timely submitted BFFs and bid deposits may participate in the Mock
Auction.
ii. Monetary Auction: On February 23, 2022, BOEM, through its
contractor, will hold the auction. The first round of the auction will
start at 9:00 a.m. EST. The auction will proceed electronically
according to a schedule to be distributed by the BOEM Auction Manager
at the time of the auction. BOEM anticipates that the auction will last
1-business day, but it may continue on consecutive business days, as
necessary, until the auction ends in accordance with the procedures
described in the ``Auction Procedures'' section of this notice.
iii. Announce Provisional Winners: BOEM will announce the
provisional
[[Page 2448]]
winners of the lease sale after the auction ends.
c. From the Auction to Lease Execution:
i. Refund Non-Winners: Once the provisional winners have been
announced, BOEM will return the non-winners' bid deposits.
ii. Department of Justice (DOJ) Review: DOJ will have 30 days in
which to conduct an antitrust review of the auction, pursuant to 43
U.S.C 1337(c).
iii. Delivery of the Lease: BOEM will send three lease copies to
each winner, with instructions for executing the lease. The first
year's rent is due 45-calendar days after the winners receive the lease
copies for execution.
iv. Return the Lease: Within 10-business days of receiving the
lease copies, the auction winners must post financial assurance, pay
any outstanding balance of their bonus bids (i.e., winning monetary bid
minus applicable bid deposit), and sign and return the three executed
lease copies. The winners may request extensions to the 10-day
deadline, and BOEM may grant such extensions if BOEM determines the
delay to be caused by events beyond the requesting winner's control,
pursuant to 30 CFR 585.224(e).
v. Execution of Lease: Once BOEM has received the signed lease
copies and verified that all other required materials have been
received, BOEM will make a final determination regarding its issuance
of the leases and will execute the leases, if appropriate.
IV. Area Offered for Leasing: In response to comments received on
the PSN and consultation with Federal agencies, BOEM is offering six
lease areas totaling 488,201 acres for sale through this notice (Figure
1). The eight areas in the PSN have been reoriented and reduced by 22%
to address ocean user conflicts in response to comments and input from
ocean users, including the fishing industry, the U.S. Coast Guard
(USCG) and navigation interests, the National Marine Fisheries Service
(NMFS), and the Department of Defense (DOD). Lease Area OCS-A 0543 as
identified in the PSN will not be offered for leasing at this time in
response to issues raised by the fishing industry and DOD, as well as
to allow for increased flexibility in the ongoing siting of an adjacent
fairway proposed by the USCG. If circumstances change, BOEM may
reconsider this area in a future sale. In addition, at this time, BOEM
decided to remove from leasing consideration several areas that overlap
with both fishing activity and seafloor features identified by NMFS and
other stakeholders as potentially sensitive to impacts from offshore
wind facility construction. These removals reduced the viability of
OCS-A 0540 as a standalone Lease Area. Therefore, BOEM expanded the
western boundary of OCS-A 0539 and removed proposed lease OCS-A 0540.
The removal of OCS-A 0543 also negated the justification for the area
formerly called a ``transit corridor'' (running southwest by northeast)
between what was previously OCS-A 0543 and OCS-A 0540. The removal of
this transit corridor allowed for a westward expansion of the
boundaries of OCS-A 0541 and OCS-A 0542, as depicted in the map of the
areas linked below. Comments received regarding fishing activity and
seafloor features also resulted in no leases being offered within 2.5
nautical miles (nmi) of the Mid-Atlantic Scallop Access Area.
The area available for sale will be auctioned as six leases:
Table 1 to Section IV--ATLW-8 Final Lease Areas
------------------------------------------------------------------------
No surface
Lease Total acres occupancy
(acres)
------------------------------------------------------------------------
Lease OCS-A 0537........................ 71,522 ..............
Lease OCS-A 0538........................ 84,332 12,810
Lease OCS-A 0539........................ 125,964 11,687
Lease OCS-A 0541........................ 79,351 3,212
Lease OCS-A 0542........................ 83,976 7,082
Lease OCS-A 0544........................ 43,056
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BILLING CODE 4310-MR-P
[[Page 2449]]
[GRAPHIC] [TIFF OMITTED] TN14JA22.000
BILLING CODE 4310-MR-C
a. Transit Corridors: In the PSN, BOEM solicited comments on
proposed transit corridors in Hudson South. USCG pointed out that the
term ``transit corridor'' is not defined or recognized in law,
regulation, or international convention. As such, the use of the term
will likely add confusion. BOEM will not use the term in this sale or
future
[[Page 2450]]
lease sales or other actions. The remaining feedback BOEM received
through PSN comments and meetings with the fishing community was
largely positive. Therefore, the following lease areas have 2.44 nmi of
unleased ocean space between them: OCS-A 0538 and OCS-A 0539 as well as
between OCS-A 0539 and OCS-A0541/OCS-A 0542. These areas remain open
ocean in which BOEM is not offering a lease. The Permanent
International Association of Navigation Congresses World Association of
Waterborne Transport Infrastructure and Maritime Institute Netherlands
calculations and guidelines as well as the USCG draft Port Access Route
Study (USCG-2020-0172) were used to inform our analysis. We note that
the USCG draft Port Access Route Study (USCG-2020-0172) suggests that
formal establishment of shipping safety fairways or other routing
measures within a wind farm are not necessary to facilitate safe
transit.
b. Areas of No Surface Occupancy: BOEM generally does not lease in
increments smaller than an aliquot, which is defined as 1/16th of an
OCS lease block (2,304 hectares or 5,693.29 acres). To accommodate the
desired distances between surface structures, select portions of the
lease areas in the Hudson South WEA (OCS-A 0538, 0539, 0541, 0542) will
be offered for sale, but no surface occupancy will be permitted, as
described in Addendum A of each respective lease.
c. Habitat Avoidance and Facilitating Fishing Vessel Activity:
Commenters recommended that BOEM remove from leasing consideration
habitat features that could be adversely impacted by future offshore
wind facility development. These areas were primarily represented by
the New Jersey Department of Environmental Protection's ``Prime Fishing
Area'' data. Additionally, fishers have requested that offshore wind
facilities be designed in a manner that, among other things, provides
for safe transit and fishing through and adjacent to future offshore
wind facilities. In the Hudson South and the Central Bight WEAs, BOEM
removed from leasing consideration areas that met these multiple
avoidance recommendations. In Hudson South, BOEM removed areas adjacent
to the Mid-Atlantic Scallop Access Area and areas to the west of OCS-A
0539 that are fished by the Atlantic surfclam fishery. In the Central
Bight WEA, the southern portion of OCS-A 0537 was removed due to
multiple factors, including fishing activity and seafloor features.
d. Map of the Area Offered for Leasing: A map of the Lease Areas,
and GIS spatial files X, Y (eastings, northings) UTM Zone 18, NAD83
Datum, and geographic X, Y (longitude, latitude), NAD83 Datum can be
found on BOEM's website at: <a href="https://www.boem.gov/renewable-energy/state-activities/new-york-bight">https://www.boem.gov/renewable-energy/state-activities/new-york-bight</a>. A large-scale map of the Lease Areas,
showing boundaries of the area with numbered blocks, is available from
BOEM upon request at the following address: Bureau of Ocean Energy
Management, Office of Renewable Energy Programs, 45600 Woodland Road,
VAM-OREP, Sterling, Virginia 20166, Phone: (703) 787-1300, Fax: (703)
787-1708.
V. Environmental Review: On August 10, 2021, BOEM announced the
availability of a draft Environmental Assessment (EA) that assesses the
potential impacts of the issuance of commercial and research leases
within the identified WEAs of the NY Bight, and the granting of rights-
of-way and rights-of-use and easement in the region. The EA focuses on
potential environmental consequences of site characterization
activities and site assessment activities. The EA also considers
project easements associated with each potential lease issued and
grants for subsea cable corridors in the NY Bight. The availability of
the Final EA and Finding of No Significant Impact was announced on
December 16, 2021. BOEM determined that the Proposed Action would not
cause any significant impacts and implementing the Proposed Action does
not constitute a major Federal action significantly affecting the
quality of the human environment within the meaning of section
102(2)(c) of the National Environmental Policy Act of 1969. BOEM will
conduct additional environmental reviews upon receipt of a lessee's
proposed project-specific plans, such as a Site Assessment Plan (SAP)
or Construction and Operations Plan (COP).
VI. New and Modified Lease Stipulations: Based on feedback
provided, BOEM is adding lease stipulations that, though discussed
conceptually, were not explicitly proposed in the lease packages
associated with the PSN. BOEM also is refining certain stipulations in
the PSN and previous lease packages.
a. Reporting requirements: In an effort to require early and
regular engagement with Tribes and ocean users, underserved
communities, and other stakeholders (collectively ``Tribes and
parties'') that may be potentially affected by the project activities
on the OCS, BOEM is building upon an existing lease stipulation to
require a semi-annual progress report. Within the progress report,
Lessees will identify Tribes and parties potentially affected by
proposed activities and provide updates on engagement activities,
impacts on or benefits to the Tribes and parties due to the proposed
activities, and how, if at all, a project has been informed or altered
to address those challenges or benefits, as well as any planned
engagement activities during the next reporting period. In
acknowledgment of the existing and growing consultation burden placed
on many of the Tribes and parties, the stipulation also requires, to
the maximum extent practicable, that Lessees coordinate with one
another on engagement activities. It is BOEM's intention that this
requirement to coordinate engagement apply not only to meetings
proposed by Lessees, but also to reasonable requests to coordinate
engagement requested by Tribes and parties. In addition, the
stipulation requires that the progress report incorporate separate
lease requirements for the development of communication plans for
fisheries (Fisheries Communication Plan (FCP)), Tribes (Native American
Tribes Communication Plan), and agencies (Agency Communication Plan),
which serve to guide engagement activities with those groups.
Consistent with current practice, the FCP is a requirement of the
lease; however, BOEM has added additional elements to include in the
FCP based on comments received. Lastly, the progress report must also
include an update on activities executed under any survey plan.
b. Transmission Planning: BOEM is continuing a planned approach to
transmission and is evaluating options including the use of cable
corridors, regional transmission systems, meshed systems, and other
mechanisms. Therefore, BOEM may condition COP approval on the
incorporation of such methods where appropriate. BOEM encourages those
who obtain leases from this sale to engage in early coordination with
adjacent lessees, states, Tribal Nations, and other ocean users to
identify ways to minimize impacts from transmission. In addition, BOEM
has modified the lease stipulations concerning communication with
Tribal Nations and parties to explicitly seek input and discussion
surrounding transmission easements prior to proposing such easements.
c. Birds and Bats: During Endangered Species Act (ESA)
consultation, the U.S. Fish and Wildlife Service recommended in its
October 15, 2021, letter to BOEM the installation of automated Motus
telemetry tracking stations on meteorological buoys to help address
[[Page 2451]]
information gaps on offshore movements of birds and bats, including
ESA-listed species. Therefore, BOEM is including a stipulation
requiring the use of such tracking stations.
d. Project Labor Agreements and Supply Chain: BOEM is committed to
a clean energy future, workforce development and safety, and
establishment of a durable domestic supply chain that can sustain the
U.S. offshore wind energy industry. To advance this vision, BOEM has
included three lease stipulations in the NY Bight FSN that will
encourage union-built projects and contribute towards establishing a
domestic supply chain:
i. The first stipulation requires lessees to make every reasonable
effort to enter a project labor agreement covering the construction
stage of any project proposed for the Lease Areas.
ii. The second stipulation requires lessees to establish a
statement of goals in which the lessee will describe its plans for
contributing to the creation of a robust and resilient U.S.-based
offshore wind industry supply chain. The lessee must provide regular
progress updates to BOEM, and BOEM will make those updates publicly
available.
iii. The last stipulation incentivizes the lessee to procure major
offshore wind energy components domestically. For the Lease Areas, BOEM
will set the fee rate at 0.02 (i.e., 2%) for the entire life of
commercial operations. Should the lessee satisfy the terms of the
stipulation by meaningfully and substantially assembling or
manufacturing major components in the United States, they may be
eligible for a 1% operating fee rate for a period of five years.
e. Surface Structure Layout and Orientation: Where one lease abuts
a neighboring BOEM lease area, each lessee must endeavor to implement a
layout of surface structures that facilitates full enjoyment of the
lease and allows for a structure layout that contains two common lines
of orientation across the adjacent leases (as described in Navigation
and Vessel Inspection Circular 01-19). Where such a design cannot be
agreed upon among adjacent lessees, each lessee will be required to
incorporate a 1-nmi setback from the boundary with the neighboring
lease where no surface structures will be permitted.
f. Endangered Species Act Programmatic Consultation: BOEM has
completed a programmatic consultation with the NMFS under section 7 of
the ESA. Federal partners that were co-action agencies on the
programmatic consultation include the Bureau of Safety and
Environmental Enforcement, U.S. Army Corps of Engineers, and the U.S.
Environmental Protection Agency. On June 29, 2021, NMFS issued a Letter
of Concurrence under the ESA (<a href="https://www.boem.gov/renewable-energy/final-nlaa-osw-programmatic">https://www.boem.gov/renewable-energy/final-nlaa-osw-programmatic</a>) that covers site characterization (high
resolution geophysical (HRG), geotechnical, and biological surveys) and
site assessment and data collection (deployment, operation, and
retrieval of meteorological and oceanographic data buoys) activities
associated with Atlantic OCS leases. As a result of this consultation,
project design criteria (PDCs) and best management practices (BMPs)
associated with the mitigation, monitoring, and reporting conditions
have been developed for those data collection activities covered in the
consultation. The PDCs and BMPs pertain to mitigation, monitoring, and
reporting conditions for reducing noise exposure to protected species
from HRG surveys, avoiding vessel interactions with protected species,
and mooring design and marine debris requirements to avoid entanglement
of listed species. Similar to the requirements for threatened and
endangered species and critical habitat under the ESA, BOEM requires
mitigation, monitoring, and reporting conditions for all marine
mammals. These PDCs and BMPs will be lease requirements for NY Bight
OCS leasing activities and are found in the document Project Design
Criteria and Best Management Practices for Data Collection Associated
with Atlantic Offshore Wind Leases found at: <a href="https://www.boem.gov/renewable-energy/nmfs-esa-consultations">https://www.boem.gov/renewable-energy/nmfs-esa-consultations</a>.
VII. Potential Future Restrictions: Prospective bidders should be
aware of potential conflicts with existing uses of the OCS by the DOD
and USCG, among others. BOEM coordinates with the DOD and USCG
throughout our leasing process. A December 2020 letter from the DOD
summarizes our most recent consultations and is available at: <a href="https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/PUBLIC-NY-Bight-DOD.pdf">https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/PUBLIC-NY-Bight-DOD.pdf</a>.
a. Height Restrictions: Development of Lease Areas in the Hudson
South WEA could adversely affect U.S. Air Force Weather Division's Next
Generation Weather Radar by limiting the ability to track tropical
storms moving towards the region if turbine heights exceed 1,000 feet;
however, DOD has informed BOEM that more analysis is needed on specific
project proposals to determine the extent of interference, if any.
Lessees will be expected to coordinate with the DOD Military Aviation
and Installation Assurance Siting Clearinghouse as they design their
proposed facilities to assess the impact on radar operations. If
interference from turbines heights greater than 1,000 feet is
identified, the DOD has indicated a condition of COP approval may be
necessary that would require curtailment during severe weather events.
b. Air Surveillance and Radar: The North American Aerospace Defense
Command mission may be affected by the development of the Lease Areas.
Lessees will be expected to coordinate with the DOD Military Aviation
and Installation Assurance Siting Clearinghouse as they design their
proposed facilities to assess the level of impact on radar operations.
Mitigation measures or conditions of a COP approval may necessitate
mitigation of the identified interference.
c. Potential Future Conflicts with OCS-A 0544: The PSN identified a
potential conflict in the Hudson North WEA (OCS-A 0544) with a new
shipping safety fairway designation, as proposed by USCG, to
accommodate vessel traffic travelling across the NY Bight from the
Delaware Bay area to east of Montauk. The USCG published a final Port
Access Route Study on January 3, 2022 that proposed an adjusted fairway
route that avoids this conflict. Potential bidders should be aware that
there could be future changes or necessary mitigation measures relating
to the developable area of the lease if the proposed fairway route is
adjusted during the USCG's subsequent fairway rulemaking process.
VIII. Lease Terms and Conditions: BOEM has included terms,
conditions, and stipulations for the OCS commercial wind leases to be
offered through this sale. After the leases are issued, BOEM reserves
the right to require compliance with additional terms and conditions
associated with approval of a SAP or COP. The leases are available on
BOEM's website at: <a href="https://www.boem.gov/renewable-energy/state-activities/new-york-bight">https://www.boem.gov/renewable-energy/state-activities/new-york-bight</a>. The leases include the following five
attachments:
<bullet> Addendum ``A'' (Description of Leased Area and Lease
Activities);
<bullet> Addendum ``B'' (Lease Term and Financial Schedule);
<bullet> Addendum ``C'' (Lease Specific Terms, Conditions, and
Stipulations);
<bullet> Addendum ``D'' (Project Easement); and
<bullet> Addendum ``E'' (Rent Schedule).
Addenda ``A,'' ``B,'' and ``C'' provide detailed descriptions of
lease terms and conditions. Addenda ``D'' and ``E'' will be completed
at the time of COP approval or approval with modifications.
[[Page 2452]]
The most recent version of BOEM's renewable energy commercial lease
form (BOEM-0008) is available on BOEM's website at: <a href="http://www.boem.gov/BOEM-OCS-Operation-Forms/">http://www.boem.gov/BOEM-OCS-Operation-Forms/</a>.
Pursuant to 30 CFR 585.601, a leaseholder wishing to submit a SAP
must do so within 12 months of lease issuance. If the lessee intends to
continue to hold the lease into its operations term, the lessee must
submit a COP at least 6 months before the end of the site assessment
term.
IX. Financial Terms and Conditions: This section provides an
overview of the annual payments required of the lessee that will be
fully described in the lease, and the financial assurance requirements
that will be associated with the lease.
a. Rent: Pursuant to 30 CFR 585.224(b) and 585.503, the first
year's rent payment of $3 per acre is due within 45-calendar days of
the date the lessee receives the lease for execution. Thereafter,
annual rent payments are due on the anniversary of the effective date
of the lease as defined in 30 CFR 585.237 (the ``Lease Anniversary'').
Once commercial operations under the lease begin, BOEM will charge rent
only for the portions of the lease remaining undeveloped (i.e., non-
operating acreage). For a 71,522 acre lease (the size of OCS-A 0537),
the rent payment will be $214,566 per year if no portion of the lease
area is authorized for commercial operations.
If the lessee submits an application for relinquishment of a
portion of its leased area within the first 45-calendar days following
the date that the lease is received by the lessee for execution, and
BOEM approves that application, no rent payment will be due on the
relinquished portion of the lease area. Later relinquishments of any
portion of the lease area will reduce the lessee's rent payments
starting in the year following BOEM's approval of the relinquishment.
The lessee must also pay rent for any project easement associated with
the lease, commencing on the date that BOEM approves the COP (or
modification thereof) that describes the project easement as outlined
in 30 CFR 585.508. Annual rent for a project easement that is 200 feet
wide and centered on the transmission cable is $70 per statute mile.
For any additional acreage required, the lessee must also pay the
greater of $5 per acre per year or $450 per year.
b. Operating Fee: For purposes of calculating the initial annual
operating fee payment pursuant to 30 CFR 585.506, BOEM applies an
operating fee rate to a proxy for the wholesale market value of the
electricity expected to be generated from the project during its first
12 months of operations. This initial payment will be prorated to
reflect the period between the commencement of commercial operations
and the Lease Anniversary. The initial annual operating fee payment is
due within 45 days of the commencement of commercial operations.
Thereafter, subsequent annual operating fee payments are due on or
before the Lease Anniversary.
The subsequent annual operating fee payments are calculated by
multiplying the operating fee rate by the imputed wholesale market
value of the projected annual electric power production. For the
purposes of this calculation, the imputed market value would be the
product of the project's annual nameplate capacity, the total number of
hours in the year (8,760), the capacity factor, and the annual average
price of electricity derived from a regional wholesale power price
index. For example, the annual operating fee for a 1,028-megawatt (MW)
wind facility operating at a 40% capacity (i.e., capacity factor of
0.4) with an annual average regional wholesale power price of $40/
megawatt hour (MWh) and an operating fee rate of 0.02 will be
calculated as follows:
[GRAPHIC] [TIFF OMITTED] TN14JA22.001
i. Operating Fee Rate: The operating fee rate is the share of
imputed wholesale market value of the projected annual electric power
production due to the Office of Natural Resources Revenue as an annual
operating fee. For the Lease Areas, BOEM will set the fee rate at 0.02
(i.e., 2%) for the entire life of commercial operations. Should the
lessee satisfy the terms of the stipulation by meaningfully and
substantially assembling or manufacturing major components in the
United States, they may be eligible for a 1% operating fee rate for a
period of five years.
ii. Nameplate Capacity: Nameplate capacity is the maximum rated
electric output, expressed in MW, which the turbines of the wind
facility under commercial operations can produce at their rated wind
speed as designated by the turbine's manufacturer. The nameplate
capacity available at the start of each year of commercial operations
on the lease will be the capacity provided in the Fabrication and
Installation Report (FIR). For example, if the lessee installed 100
turbines as documented in its FIR, and each is rated by the
manufacturer at 12 MW, the nameplate capacity of the wind facility is
1,200 MW.
iii. Capacity Factor: The capacity factor relates to the amount of
energy delivered to the grid during a period of time compared to the
amount of energy the wind facility would have produced at full capacity
during that same period of time. This factor is represented as a
decimal between zero and one. There are several reasons why the amount
of power delivered is less than the theoretical 100% of capacity. For a
wind facility, the capacity factor is mostly determined by the
availability of wind. Transmission line loss and down time for
maintenance or other purposes also affect the capacity factor.
The capacity factor for the year in which the commercial operation
date occurs, and for the first 6 full years of commercial operations on
the lease, is set to 0.4 (i.e., 40%). At the end of the sixth year, the
capacity factor may be adjusted to reflect the performance over the
previous five years based upon the actual metered electricity
generation at the delivery point to the electrical grid. Similar
adjustments to the capacity factor may be made once every five years
thereafter.
iv. Wholesale Power Price Index: Pursuant to 30 CFR
585.506(c)(2)(i), the wholesale power price, expressed in dollars per
MW-hour, is determined at the time each annual operating fee payment is
due. For the leases offered in this sale, BOEM will use the simple
hourly average of the spot price indices for New York Independent
System Operators New York City (Zone J).
c. Financial Assurance: Within 10-business days after receiving the
lease copies and pursuant to 30 CFR 585.515-.516, the provisional
winners of the leases must provide an initial lease-specific bond or
other approved means of meeting the lessor's initial financial
assurance requirements, in the amount of $100,000. The provisional
winners may meet financial assurance requirements by posting a surety
bond or by setting up an escrow account with a trust agreement giving
BOEM the right
[[Page 2453]]
to withdraw the money held in the account on demand. BOEM encourages
the provisionally winning bidder to discuss the financial assurance
requirement with BOEM as soon as possible after the auction has
concluded. BOEM will base the amount of all SAP, COP, and
decommissioning financial assurance on cost estimates for meeting all
accrued lease obligations at the respective stages of development. BOEM
will determine the required amount of supplemental and decommissioning
financial assurance on a case-by-case basis. The financial terms
described above can be found in Addendum ``B'' of the leases, which
BOEM has made available with this notice on its website at: <a href="https://www.boem.gov/renewable-energy/state-activities/new-york-bight">https://www.boem.gov/renewable-energy/state-activities/new-york-bight</a>.
X. Bidder's Financial Form: Each bidder must fill out the BFF
referenced in this FSN. BOEM has also made a copy of the form available
with this notice on its website at: <a href="https://www.boem.gov/renewable-energy/state-activities/new-york-bight">https://www.boem.gov/renewable-energy/state-activities/new-york-bight</a>. BOEM recommends that each
bidder designate an email address in its BFF that the bidder will then
use to create an account in <a href="http://pay.gov">pay.gov</a> (if it has not already done so).
BOEM will not consider BFFs submitted by bidders for previous lease
sales to satisfy the requirements of this auction. If a bidder does not
submit a BFF by January 26, 2022, BOEM, in its sole discretion, may
grant an extension to that bidder only if BOEM determines the bidder's
failure to timely submit a BFF was caused by events beyond the bidder's
control. BOEM will only accept an original, executed paper copy of the
BFF. The BFF must be executed by an authorized representative listed in
the qualifications package on file with BOEM as authorized to bind the
company.
XI. Bid Deposit: A bid deposit is an advance cash payment submitted
to BOEM to participate in the auction. After creating an account in
<a href="http://pay.gov">pay.gov</a> (if necessary), bidders may use the Bid Deposit Form on the
<a href="http://pay.gov">pay.gov</a> website to leave a deposit. Each bidder must submit a bid
deposit of $5,000,000 no later than February 9, 2022. Any bidder who
fails to submit the bid deposit by this deadline may be disqualified
from participating in the auction.
Following the auction, bid deposits will be applied against bonus
bids or other obligations owed to BOEM. If the bid deposit exceeds a
bidder's total financial obligation, BOEM will refund the balance of
the bid deposit to the bidder. BOEM will refund bid deposits to non-
winners once BOEM has announced the provisional winner.
If BOEM offers a lease pursuant to a provisionally winning bid and
that bidder fails to timely return the signed lease form, establish
financial assurance, or pay the balance of its bid, BOEM will retain
the bidder's $5,000,000 bid deposit. In such a circumstance, BOEM
reserves the right to determine which bid would have won in the absence
of the bid previously determined to be the winning bid and to offer a
lease pursuant to this next highest bid.
XII. Minimum Bid: The minimum bid is the lowest bid that BOEM will
accept as a winning bid, and it is where BOEM will start the bidding in
the auction. BOEM has established a minimum bid of $100.00 per acre for
this lease sale.
XIII. Auction Procedures: As authorized under 30 CFR 585.220(a)(2)
and 585.221(a)(1), BOEM will use an ascending bidding auction with cash
as the bid variable for this lease sale. BOEM will start the auction
using the minimum bid prices for each Lease Area and will increase
those prices incrementally until no more than one active bidder per
Lease Area remains in the auction.
a. The Auction: Using an online bidding system to host the auction,
BOEM will start the bidding for Lease Areas OCS-A 0537 through 0539,
OCS-A 0541, OCS-A 0542, and OCS-A 0544, as described below. Bidders may
bid for at most one of the offered Lease Areas in each round of the
auction, and ultimately acquire at most one of the Lease Areas in the
auction.
------------------------------------------------------------------------
Lease area Acres Minimum bid
------------------------------------------------------------------------
OCS-A 0537.................................... 71,522 $7,152,200
OCS-A 0538.................................... 84,332 8,433,200
OCS-A 0539.................................... 125,964 12,596,400
OCS-A 0541.................................... 79,351 7,935,100
OCS-A 0542.................................... 83,976 8,397,600
OCS-A 0544.................................... 43,056 4,305,600
------------------------------------------------------------------------
b. Live Bids: The auction will be conducted in a series of rounds.
At the start of each round, BOEM will state an asking price for each
Lease Area. If a bidder is willing to meet the asking price for one of
the Lease Areas, it will indicate its intent by submitting a bid equal
to the asking price. A bid at the full asking price is referred to as a
``live bid.'' To participate in the next round of the auction, a bidder
must have submitted a live bid for one of the Lease Areas in each
previous round, or BOEM must have carried forward a bidder's bid from a
previous round. As long as there are two or more live bids (including
bids carried forward) for at least one of the Lease Areas, the auction
moves to the next round. If a bid is uncontested, it is automatically
carried forward to the next round. BOEM will raise the asking price for
each of the Lease Areas that has received two or more live bids in the
previous round. Asking price increments will be determined based on
several factors, including (but not necessarily limited to) the
expected time needed to conduct the auction and the number of rounds
that have already occurred. BOEM reserves the right to increase or
decrease bidding increments as appropriate.
A bidder may switch its live bid from one Lease Area to another
between rounds only if its bid from the previous round was contested.
For example, a bidder cannot switch from OCS-A 0537 to OCS-A 0538
unless there was at least one other live bid for OCS-A 0537 in the
prior round. If the bid was uncontested in the previous round, the
bidder cannot switch Lease Areas, and its bid in the previous round is
carried forward to the next round. If another bidder places a live bid
on OCS-A 0537 later in the auction, BOEM will stop automatically
carrying forward the previously uncontested bid on that Lease Area. The
bidder that placed the previously carried forward bid is then free to
bid on any of the Lease Areas in the next round at the new asking
prices.
If a bidder decides to stop bidding when its bid is contested,
there remain circumstances in which BOEM may select the bid as the
winning bid (e.g., if the bid is ultimately selected in the winner
determination that is described in detail below, or if the winning bid
is disqualified at the award stage of the auction and BOEM selects
another bid). In these circumstances, the bidder may be bound by its
bid and thus obligated to pay the full bid amount. Bidders may be bound
by any of their bids until the auction results are finalized.
Between rounds, BOEM will disclose to all bidders that submitted
bids: (1) The number of live bids or bids carried forward for each of
the Lease Areas in the previous round of the auction (i.e., the level
of demand at the asking price); and (2) the asking price for each of
the Lease Areas in the upcoming round of the auction.
c. Exit Bids: In any round after the first round, a bidder may
submit an ``exit bid'' (also known as an ``intra-round bid'') only for
the same Lease Area as the bidder's contested live bid in the previous
round. An exit bid is a bid that is greater than the previous round's
asking price, but less than the current round's asking price for that
Lease Area. An exit bid is not a live bid, and it represents the final
bid that a bidder may submit in the auction. A bidder may not submit
both an exit bid on one of the Lease Areas and a live bid
[[Page 2454]]
on a different Lease Area. During the auction, the exit bid can be seen
only by BOEM and not by other bidders. BOEM will not raise the asking
price in a Lease Area with only exit bids in a given round because BOEM
only raises asking prices when a Lease Area receives multiple live
bids. As soon as each of the Lease Areas has one or zero live bids
(including bids carried forward, which could include an exit bid if
another bidder does not bid on this area in a subsequent round), the
auction is over, regardless of the number of exit bids on each area.
d. Determination of Provisional Winners: After the bidding ends,
BOEM will determine the provisionally winning bids for each Lease Area
by a two-stage procedure. In stage 1, the highest bid (live bid or exit
bid) received for each Lease Area in the final round will be designated
the provisionally winning bid, if there is a single highest bid. In the
event of a tie (i.e., if two or more bidders submitted identical
highest exit bids for the same Lease Area), the selection of one of the
highest exit bids will be deferred until stage 2.
In stage 2, BOEM will consider bids from all bidding rounds for
Lease Areas that were not assigned in stage 1 by bidders who were not
assigned one of the Lease Areas in stage 1. BOEM will select the
combination of such bids that maximizes the sum of the bid amounts of
the selected bids, subject to the following constraints: (1) Each Lease
Area that received multiple highest exit bids in the final round (but
no live bid) is assigned to one of the bidders that submitted the
highest exit bid; (2) at most one bid from each bidder can be selected;
and (3) at most one bid for each Lease Area can be selected. If there
is a unique combination of bids that solves this maximization problem,
then these bids are deemed to be the remaining provisionally winning
bids. If two or more combinations of bids tie by producing the same
maximized sum of bid amounts, the auction system will select one of the
combinations by generating pseudorandom numbers. The provisional
winners will pay the amounts of their provisionally winning bids.
Provisional winners may be disqualified if they are subsequently found
to have violated auction rules or BOEM regulations, or otherwise
engaged in conduct detrimental to the integrity of the competitive
auction. If a bidder submits a bid that BOEM determines to be a
provisionally winning bid, the bidder will be expected to sign the
applicable lease documents, establish financial assurance, and submit
the cash balance of its bid (i.e., winning bid amount minus the bid
deposit) within 10-business days of receiving the lease copies,
pursuant to 30 CFR 585.224. BOEM reserves the right not to issue the
lease to the provisionally winning bidder if that bidder fails to
timely sign and pay for the lease or otherwise fails to comply with
applicable regulations or the terms of the FSN. In that case, the
bidder would forfeit its bid deposit. BOEM may consider failure of a
bidder to timely pay the full amount due to be an indication that the
bidder may no longer be financially qualified to participate in other
lease sales under 30 CFR 585.106 and 585.107.
BOEM will publish the provisionally winning bid amounts and
provisional winners. The bid results, including exit bids, will be
published on BOEM's website after review of the results and
announcement of the provisional winners.
e. Authorized Individuals and Bidder Authentication: A company that
is eligible to participate in the auction will identify on its BFF up
to three individuals who are authorized to bid on behalf of the
company, including their names, business telephone numbers, and email
addresses. After BOEM has processed the bid deposits, the auction
contractor will send several emails to the authorized individuals. The
emails will contain user login information and instructions for
accessing the bidder manual for the auction system and the auction
system technical supplement (ASTS).
The auction system will require software tokens for two-factor
authentication. To set up the tokens, authorized individuals must
download an app onto their smartphone or tablet via a recent operating
system. One of the emails sent to authorized individuals will contain
instructions for installing the app and the credentials needed to
activate the software token. A short telephone conversation with the
auction contractor may also be needed to use the credentials. The login
information, along with the tokens, will be tested during the mock
auction. If an eligible bidder fails to submit a bid deposit or does
not participate in the auction, BOEM will de-activate that bidder's
tokens and login information.
f. Timing of Auction: The auction will begin at 9:00 a.m. EST on
February 23, 2022. Bidders may log in as early as 8:30 a.m. EST on that
day. BOEM recommends that bidders log in earlier than 9:00 a.m. EST on
that day to ensure that any login issues are resolved prior to the
start of the auction. Once bidders have logged in, they should review
the auction schedule, which lists the anticipated start times, end
times, and recess times of each round in the auction. Each round is
structured as follows:
<bullet> Round bidding begins;
<bullet> Bidders enter their bids;
<bullet> Round bidding ends and the recess begins;
<bullet> During the recess, previous round results and next round
asking prices are posted;
<bullet> Bidders review the previous round results and prepare
their next round bids; and
<bullet> Next round bidding begins.
The first round will last about 30 minutes, though subsequent
rounds will be shorter. Recesses are anticipated to last approximately
10 minutes. This description of the auction schedule is tentative.
Bidders should consult the auction schedule on the auction system
during the auction for updated times. Bidding will continue until about
6:00 p.m. EST each day. BOEM anticipates that the auction will last 1-
to 2-business days, but may continue for additional business days as
necessary until the auction has concluded.
g. Messaging Service: BOEM and the auction contractors will use the
auction platform messaging service to keep bidders informed on issues
of interest during the auction. For example, BOEM may change the
schedule at any time, including during the auction. If BOEM changes the
schedule during an auction, it will use the messaging feature to notify
bidders that a revision has been made and will direct bidders to the
relevant page. BOEM will also use the messaging system for other
updates during the auction.
Bidders may place bids at any time during the round. At the top of
the bidding page, a countdown clock shows how much time remains in the
round. Bidders have until the end of the round to place bids. Bidders
should place bids according to the procedures described in this notice
and the ASTS. Information about the round results will only be made
available after the round has closed, so there is no strategic
advantage to placing bids early or late in the round.
The ASTS will elaborate on the auction procedures described in this
FSN. In the event of an inconsistency between the ASTS and the FSN, the
FSN is controlling.
h. Alternate Bidding Procedures: Redundancy is the most effective
way to mitigate technical and human issues during an auction. Bidders
should strongly consider authorizing more than one individual to bid in
the auction--and confirming during the mock auction that each
individual is able to access the auction system. A 4G card or other
form
[[Page 2455]]
of wireless access is helpful in case a company's main internet
connection should fail. As a last resort, an authorized individual
facing technical issues may request to submit its bid by telephone. In
order to be authorized to place a telephone bid, an authorized
individual must call the help desk number listed in the auction manual
before the end of the round. BOEM will authenticate the caller's
identity, including requiring the caller to provide a code from the
software token. The caller must also explain the reasons why a
telephone bid must be submitted. BOEM may, in its sole discretion,
permit or refuse to accept a request for the placement of a bid using
this alternate bidding procedure.
i. Prohibition on Communications Between Bidders During Auction:
During the auction, bidders are prohibited from communicating with each
other regarding their participation in the auction. Also, during the
auction, bidders are prohibited from communicating to the public
regarding any aspect of their participation or lack thereof in the
auction, including, but not limited to, through social media, updated
websites, or press releases.
XIV. Post-Auction Procedures:
a. Rejection or Non-Acceptance of Bids: BOEM reserves the right and
authority to reject all bids that do not satisfy the requirements and
rules of the auction, the FSN, or applicable regulations and statutes.
i. Anti-Competitive Review: Bidding behavior in this sale is
subject to Federal antitrust laws. Accordingly, following the auction,
but before the acceptance of bids and the issuance of leases, BOEM will
``allow the Attorney General, in consultation with the Federal Trade
Commission, 30 days to review the results of the lease sale.'' 43
U.S.C. 1337(c). If a provisionally winning bidder is found to have
engaged in anti-competitive behavior in connection with its
participation in the competitive bidding process, BOEM may reject its
provisionally winning bid. Compliance with BOEM's auction procedures
and regulations is not an absolute defense to violations of antitrust
laws.
Anti-competitive behavior determinations are fact-specific. Such
behavior may manifest itself in several different ways, including, but
not limited to:
1. An express or tacit agreement among bidders not to bid in an
auction or to bid a particular price;
2. An agreement among bidders not to bid or not to bid on one of
the Lease Areas;
3. An agreement among bidders not to bid against each other; or
4. Other agreements among bidders that have the potential to affect
the final auction price.
Pursuant to 43 U.S.C. 1337(c), BOEM will decline to award a lease
if the Attorney General, in consultation with the Federal Trade
Commission, determines that awarding the lease would be inconsistent
with the antitrust laws.
For more information on whether specific communications or
agreements could constitute a violation of Federal antitrust law,
please see <a href="https://www.justice.gov/atr/business-resources">https://www.justice.gov/atr/business-resources</a> or consult
legal counsel.
b. Process for Issuing the Lease: Once all post-auction reviews
have been completed to BOEM's satisfaction, BOEM will issue three
unsigned copies of the lease to each provisionally winning bidder.
Within 10-business days after receiving the lease copies, the
provisionally winning bidders must:
1. Sign and return the lease copies on the bidder's behalf;
2. File financial assurance, as required under 30 CFR 585.515-.537;
and
3. Pay by electronic funds transfer (EFT) the balance (if any) of
the bonus bid (winning bid less the bid deposit). BOEM requires bidders
to use EFT procedures (not <a href="http://pay.gov">pay.gov</a>, the website bidders used to submit
bid deposits) for payment of the balance of the bonus bid, following
the detailed instructions contained in the ``Instructions for Making
Electronic Payments'' available on BOEM's website at: <a href="https://www.boem.gov/renewable-energy/state-activities/new-york-bight">https://www.boem.gov/renewable-energy/state-activities/new-york-bight</a>.
BOEM will not execute a lease until the three requirements above
have been satisfied, BOEM has accepted the provisionally winning
bidder's financial assurance pursuant to 30 CFR 585.515, and BOEM has
processed the provisionally winning bidder's payment.
BOEM may extend the 10-business day deadline for signing a lease,
filing the required financial assurance, and paying the balance of the
bonus bid if BOEM determines the delay was caused by events beyond the
provisionally winning bidder's control.
If a provisionally winning bidder does not meet these requirements
or otherwise fails to comply with applicable regulations or the terms
of the FSN, BOEM reserves the right not to issue the lease to that
bidder. In such a case, the provisionally winning bidder will forfeit
its bid deposit. Also, in such a case, BOEM reserves the right to
identify the next highest bid for that lease area submitted during the
lease sale by a bidder who has not won one of the other Lease Areas and
to offer the lease to that bidder pursuant to its bid.
Within 45-calendar days of the date that a provisionally winning
bidder receives copies of the lease, it must pay the first year's rent
using the <a href="http://pay.gov">pay.gov</a> and Renewable Energy Initial Rental Payment form
available at: <a href="https://www.pay.gov/public/form/start//27797604/">https://www.pay.gov/public/form/start//27797604/</a>.
Subsequent annual rent payments must be made following the detailed
instructions contained in the ``Instructions for Making Electronic
Payments,'' available on BOEM's website at: <a href="https://www.boem.gov/renewable-energy/state-activities/new-york-bight">https://www.boem.gov/renewable-energy/state-activities/new-york-bight</a>.
c. Non-Procurement Debarment and Suspension Regulations: Pursuant
to regulations at 43 CFR part 42, subpart C, an OCS renewable energy
lessee must comply with the Department of the Interior's non-
procurement debarment and suspension regulations at 2 CFR parts 180 and
1400. The lessee must also communicate this requirement to persons with
whom the lessee does business relating to this lease by including this
term as a condition in their contracts and other transactions.
d. Force Majeure: The Program Manager of BOEM's Office of Renewable
Energy Programs has the discretion to change any auction details
specified in the FSN, including the date and time, in case of a force
majeure event that the Program Manager deems may interfere with a fair
and proper lease sale process. Such events may include, but are not
limited to: Natural disasters (e.g., earthquakes, hurricanes, floods,
blizzards), wars, riots, acts of terrorism, fire, strikes, civil
disorder, or other events of a similar nature. In case of such events,
BOEM will notify all qualified bidders via email, phone, or through the
BOEM website at: <a href="http://www.boem.gov/Renewable-Energy-Program/index.aspx">http://www.boem.gov/Renewable-Energy-Program/index.aspx</a>.
Bidders should call 703-787-1121 if they have concerns.
e. Withdrawal of Blocks: BOEM reserves the right to withdraw all or
portions of the Lease Areas prior to executing the leases with the
winning bidders.
f. Appeals: The appeals procedures are provided in BOEM's
regulations at 30 CFR 585.225 and 585.118(c). Pursuant to 30 CFR
585.225:
(a) If BOEM rejects your bid, BOEM will provide a written statement
of the reasons and refund any money deposited with your bid, without
interest.
(b) You will then be able to ask the BOEM Director for
reconsideration, in
[[Page 2456]]
writing, within 15-business days of bid rejection, under 30 CFR
585.118(c)(1). We will send you a written response either affirming or
reversing the rejection.
The procedures for appealing final decisions with respect to lease
sales are described in 30 CFR 585.118(c).
XV. Protection of Privileged or Confidential Information: BOEM will
protect privileged and confidential information that you submit, as
required by the Freedom of Information Act (FOIA). Exemption 4 of FOIA
applies to ``trade secrets and commercial or financial information that
you submit that is privileged or confidential.'' 5 U.S.C. 552(b)(4). If
you wish to protect the confidentiality of such information, clearly
mark it ``Contains Privileged or Confidential Information'' and
consider submitting such information as a separate attachment. BOEM
will not disclose such information, except as required by FOIA.
Information that is not labeled as privileged or confidential may be
regarded by BOEM as suitable for public release. Further, BOEM will not
treat as confidential aggregate summaries of otherwise confidential
information.
Authority: 43 U.S.C. 1337(p); 30 CFR 585.211 and 585.216.
Amanda Lefton,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2022-00504 Filed 1-13-22; 8:45 am]
BILLING CODE 4310-MR-P
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</html>Indexed from Federal Register on January 14, 2022.
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.