Notice2024-09390
Atlantic Wind Lease Sale 11 (ATLW-11) for Commercial Leasing for Wind Power Development on the U.S. Gulf of Maine Outer Continental Shelf-Proposed Sale Notice
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
May 1, 2024
Issuing agencies
Interior DepartmentOcean Energy Management Bureau
Abstract
The Bureau of Ocean Energy Management (BOEM) proposes to hold Atlantic Wind Lease Sale 11 (ATLW-11) and offer multiple lease areas (Lease Areas) for commercial wind power development on the U.S. Outer Continental Shelf (OCS) in the Gulf of Maine. The proposed Lease Areas are located in the Gulf of Maine offshore the States of Maine and New Hampshire, and the Commonwealth of Massachusetts. This Proposed Sale Notice (PSN) contains information pertaining to the proposed Lease Areas, certain lease provisions and conditions, auction details, lease forms, criteria for evaluating competing bids, award procedures, appeal procedures, and lease execution procedures. The issuance of any lease resulting from a sale would not constitute approval of project-specific plans to develop floating offshore wind energy. Such plans, if submitted by the Lessee, would be subject to subsequent environmental, technical, and public reviews prior to a BOEM decision whether to approve them. BOEM is proposing an ascending clock auction with multiple-factor bidding.
Full Text
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<title>Federal Register, Volume 89 Issue 85 (Wednesday, May 1, 2024)</title>
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[Federal Register Volume 89, Number 85 (Wednesday, May 1, 2024)]
[Notices]
[Pages 35222-35236]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-09390]
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DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
[Docket No. BOEM-2024-0026]
Atlantic Wind Lease Sale 11 (ATLW-11) for Commercial Leasing for
Wind Power Development on the U.S. Gulf of Maine Outer Continental
Shelf--Proposed Sale Notice
AGENCY: Bureau of Ocean Energy Management, Interior.
ACTION: Proposed sale notice; request for comments.
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SUMMARY: The Bureau of Ocean Energy Management (BOEM) proposes to hold
Atlantic Wind Lease Sale 11 (ATLW-11) and offer multiple lease areas
(Lease Areas) for commercial wind power development on the U.S. Outer
Continental Shelf (OCS) in the Gulf of Maine. The proposed Lease Areas
are located in the Gulf of Maine offshore the States of Maine and New
Hampshire, and the Commonwealth of Massachusetts. This Proposed Sale
Notice (PSN) contains information pertaining to the proposed Lease
Areas, certain lease provisions and conditions, auction details, lease
forms, criteria for evaluating competing bids, award procedures, appeal
procedures, and lease execution procedures. The issuance of any lease
resulting from a sale would not constitute approval of project-specific
plans to develop floating offshore wind energy. Such plans, if
submitted by the Lessee, would be subject to subsequent environmental,
technical, and public reviews prior to a BOEM decision whether to
approve them. BOEM is proposing an ascending clock auction with
multiple-factor bidding.
DATES: BOEM must receive your comments no later than July 1, 2024. All
comments received during the comment period will be made available to
the public and considered prior to publication of any Final Sale Notice
(FSN). For prospective bidders who want to participate in this lease
sale, unless you have already received confirmation from BOEM that you
are qualified to participate in the Gulf of Maine auction, BOEM must
receive your qualification materials no later than July 1, 2024, and,
prior to the auction, BOEM must confirm your qualification to bid in
the auction.
ADDRESSES: You may submit written comments on the PSN in one of the
following ways:
<bullet> Electronically: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. In the search
box, enter ``BOEM-2024-0026'' and click ``Search.'' Follow the
instructions to submit public comments.
<bullet> Written Comments: Submit written comments in an envelope
labeled ``Comments on Gulf of Maine Lease Sale PSN'' and deliver them
by U.S. mail or other delivery service to: Bureau of Ocean Energy
Management, Office of Renewable Energy Programs, 45600 Woodland Road,
Mailstop: VAM-OREP, Sterling, VA 20166.
Qualifications Materials for Potential Lease Sale Participants: To
qualify to participate in a lease sale following the publication of
this PSN, qualification materials should be developed in accordance
with the guidelines at <a href="https://www.boem.gov/Renewable-Energy-Qualification-Guidelines">https://www.boem.gov/Renewable-Energy-Qualification-Guidelines</a>. Qualification materials should be submitted
electronically to <a href="/cdn-cgi/l/email-protection#c7b5a2a9a2b0a6a5aba2a2a9a2b5a0be87fba6e7afb5a2a1fa" http: boem.gov">boem.gov</a>">renewableenergy@<a href="http://boem.gov">boem.gov</a></a>, or in an envelope labeled,
``Qualification Materials for Gulf of Maine Wind Energy Lease Sale'' to
Bureau of Ocean Energy Management, Office of Renewable Energy Programs,
45600 Woodland Road, VAM-OREP, Sterling, Virginia 20166.
For more information about submitting comments, see sections XX,
``Public Participation,'' and XXI, ``Protection of Privileged and
Confidential Information,'' under the SUPPLEMENTARY INFORMATION caption
below.
FOR FURTHER INFORMATION CONTACT: Zachary Jylkka, Bureau of Ocean Energy
Management, <a href="/cdn-cgi/l/email-protection#f4ae95979c95868ddabe8d989f9f95b4c895d49c869192c9" http: boem.gov">boem.gov</a>">Zachary.Jylkka@<a href="http://boem.gov">boem.gov</a></a> or (978) 491-7732; or Gina Best,
Bureau of Ocean Energy Management, <a href="/cdn-cgi/l/email-protection#7e3917101f503c1b0d0a3e421f5e160c1b1843" http: boem.gov">boem.gov</a>">Gina.Best@<a href="http://boem.gov">boem.gov</a></a> or (703) 787-
1341.
SUPPLEMENTARY INFORMATION:
I. Background
a. Request for Interest (RFI): On August 19, 2022, BOEM published
an RFI in the Federal Register (87 FR 51129), to assess interest in,
and to invite public comment on, possible commercial wind energy
leasing on the Gulf of Maine OCS. The RFI Area consisted of
approximately 13.7 million acres. In response to the RFI, BOEM received
nominations of areas of interest from five developers, all of which
BOEM deems legally, technically, and financially qualified. In addition
to gauging interest in the development of commercial wind energy leases
within the RFI Area, BOEM also sought feedback from Tribes,
stakeholders, industry, and others regarding the location and size of
specific areas they wished to be included in (or excluded from) a
future offshore wind energy lease sale, along with other planning
considerations. BOEM received 51 unique comments on the RFI. Comments
and nominations are available at <a href="https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine">https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine</a>.
b. Call for Information and Nominations (Call): On April 25, 2023,
BOEM published a Call for Information and Nominations for Commercial
Leasing for Wind Power Development on the Gulf of Maine'' (see 88 FR
25427). BOEM received 127 unique comments on the Call. Seven developers
nominated areas for a commercial wind energy lease within the Call
Area.\1\
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\1\ Comments can be viewed at <a href="https://www.regulations.gov/docket/BOEM-2023-0025/comments">https://www.regulations.gov/docket/BOEM-2023-0025/comments</a>. A map of the nominations received
can be viewed at <a href="https://www.boem.gov/sites/default/files/images/gulf_of_maine_call_nominations_heatmap.png">https://www.boem.gov/sites/default/files/images/gulf_of_maine_call_nominations_heatmap.png</a>.
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c. Area Identification (Area ID): An Area ID determination is a
required regulatory step under the renewable energy competitive leasing
process used to identify areas for environmental analysis and
consideration for leasing. After the close of the Call comment period,
BOEM initiated the Area ID process using information and input from
stakeholders received to date.
BOEM and the National Oceanic and Atmospheric Administration's
National Centers for Coastal Ocean Science (NCCOS) collaborated in
employing an ocean planning tool (the NCCOS model) to help identify an
area that appears most suitable for floating offshore wind energy
leasing and development in the Gulf of Maine. The Area ID process seeks
to identify and minimize potential conflicts in ocean space as well as
to mitigate interactions with other users and adverse interactions with
the environment; the NCCOS model supports that effort. BOEM employed
the NCCOS model during two distinct steps of the Area ID process:
first, to model relative suitability within the boundaries of the Call
Area to identify the Draft Wind Energy Area (WEA) and Secondary Areas;
and second, to model the relative suitability within the boundaries of
the Draft WEA (plus Secondary Area C).
On October 19, 2023, BOEM announced the Gulf of Maine Draft WEA and
opened a 30-day public comment period. The methodology used to
delineate the Gulf of Maine Draft WEA is outlined in the ``Draft NCCOS
Report: A Wind Energy Area Siting Analysis for the Gulf of Maine Call
Area.'' \2\ The Draft WEA covered approximately 3.5 million acres. BOEM
considered the following
[[Page 35223]]
non-exclusive information sources when identifying the Draft WEA:
comments and nominations received on the Call; information from the
Gulf of Maine Intergovernmental Renewable Energy Task Force; input from
federally recognized Tribes; input from State and Federal agencies;
comments from stakeholders and ocean users, including the maritime
community, offshore wind developers, and the commercial and
recreational fishing industry; input from State and local governments
on renewable energy goals; and information on domestic and global
offshore wind market and technological trends.
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\2\ Available at <a href="https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/Gulf_of_Maine_Draft%20WEA_Report_NCCOS_0.pdf">https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/Gulf_of_Maine_Draft%20WEA_Report_NCCOS_0.pdf</a>.
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d. BOEM completed the Area ID process after considering additional
input received from stakeholders during the Draft WEA comment period.
BOEM published the Final WEA on March 15, 2024. The Final WEA comprises
approximately 2 million acres and represents an 80% reduction from the
size of the Call Area and a 43% reduction from the Draft WEA. The Final
WEA has the potential to support generation of 32 gigawatts (GW) of
clean energy, surpassing current State goals for offshore wind energy
in the Gulf of Maine (13-18 GW, based on Massachusetts and Maine's
offshore wind goals and estimates provided by the regional grid
operator, ISO-New England). The size of the Final WEA allows BOEM to
consider additional ways to reduce conflicts with users and resources,
while also supporting the region's renewable energy goals. For
additional information, the Gulf of Maine Area ID documentation can be
found at <a href="https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine">https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine</a>.
e. Environmental Reviews: On March 18, 2024, BOEM published a
notice of intent to prepare an environmental assessment (EA) to
consider potential environmental impacts of site characterization
activities (e.g., biological, archaeological, geological, and
geophysical surveys and core samples) and site assessment activities
(e.g., installation of meteorological buoys) that are expected to take
place after issuance of wind energy leases (89 FR 19354). The March 18
notice initiated a public scoping process, with BOEM seeking comments
on the issues and alternatives that should inform the EA. Public
comments on the notice can be found at <a href="https://www.regulations.gov">https://www.regulations.gov</a> in
docket no. BOEM-2024-0020. In addition to the preparation of the Draft
EA, and compliance with threatened and endangered species requirements
for certain data collection activities associated with OCS leasing,\3\
BOEM has initiated other required consultations under the Endangered
Species Act, the Magnuson-Stevens Fishery Conservation and Management
Act, and the Coastal Zone Management Act. The EA and associated
consultations will inform BOEM's decision whether to proceed with a
final sale notice (FSN). BOEM will solicit comments on the EA before it
is finalized. BOEM will conduct additional environmental reviews upon
receipt of a lessee's Construction and Operations Plan (COP) if one or
more of the proposed leases reach that stage of development.
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\3\ See <a href="https://www.boem.gov/sites/default/files/documents/renewable-energy/OSW-surveys-NLAA-programmatic.pdf">https://www.boem.gov/sites/default/files/documents/renewable-energy/OSW-surveys-NLAA-programmatic.pdf</a>.
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f. Phased Leasing: BOEM is proposing lease areas that we believe
represent a balance between providing sufficient acreage to meet
regional renewable energy demands and known spatial use conflicts. BOEM
may propose additional lease sales within the region at a future date;
however, the timing and scope of any future sale will be informed by
the results of this proposed Gulf of Maine sale, as well as the
position of potentially affected Tribes, Gulf of Maine States,
stakeholder engagement, relevant market conditions, and regional energy
goals.
II. Areas Proposed for Leasing
Within the Final WEA, BOEM proposes eight areas for leasing, as
described in Table 1. Descriptions of the proposed Lease Areas may be
found in Addendum A of each of the proposed leases, located on BOEM's
website at <a href="https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine">https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine</a>. Several leases are subject to a proposed lease
stipulation that would prohibit surface or subsurface development in
portions of the lease that are adjacent to corridors BOEM created
between proposed leases to facilitate existing and future vessel
transit (section II-d). For those leases, the total ``developable
acres'' are less than the total ``lease acres'' as described in Table
1.
Table 1--Gulf of Maine Proposed Lease Areas, Acres, and Assigned Region
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Total
Lease area ID Region Total lease developable
acres acres
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OCS-A 0562.................................... North........................... 121,339 121,339
OCS-A 0563.................................... North........................... 132,369 132,369
OCS-A 0564.................................... South........................... 110,308 105,499
OCS-A 0565.................................... South........................... 115,290 115,290
OCS-A 0566.................................... South........................... 127,388 127,388
OCS-A 0567.................................... South........................... 123,118 117,391
OCS-A 0568.................................... South........................... 134,149 123,389
OCS-A 0569.................................... South........................... 106,038 101,757
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Total..................................... ................................ 969,999 944,422
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[[Page 35224]]
[GRAPHIC] [TIFF OMITTED] TN01MY24.046
Figure 1: Gulf of Maine Proposed Lease Areas
a. Map of the Area Proposed for Leasing: In addition to Figure 1,
maps of the Lease Areas, and various GIS spatial files may be found on
BOEM's website at <a href="https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine">https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine</a>.
b. Potential Future Restrictions to Ensure Navigational Safety:
Potential bidders are advised of the possibility that portions of the
Lease Areas may not be available for future development (i.e.,
installation of wind energy facilities) because of navigational safety
concerns. While the Final WEA avoids the vast majority of the U.S.
Coast Guard's (USCG) Maine, New Hampshire, Massachusetts Port Access
Route Study proposed safety fairways, there is one small area of
overlap directly northeast of the Cashes Ledge Groundfish Closure area.
This area now falls within the northern portions of leases OCS-A 0562
and 0563. BOEM will coordinate with USCG as its rulemaking process to
designate possible safety fairways continues, and BOEM may require
additional mitigation measures at the COP stage when the lessee's site-
specific navigational safety risk assessment is available to inform
BOEM's decision-making.
BOEM has also included a proposed lease stipulation ``Surface
Structure Layout and Orientation'' (see Addendum C, section 10 in the
Gulf of Maine proposed leases), which would require lessees with
directly adjacent leases (i.e., OCS-A 0562 and 0563; OCS-A 0565 and
0566) to design a surface structure layout that contains two common
lines of orientation across the adjacent leases (as described in
Navigation and Vessel Inspection Circular 02-23). If the lessees cannot
agree on such a layout, each lessee would be required to incorporate a
1 nm setback from the boundary of the adjacent lease within which
surface structures are prohibited. This would create a minimum 2 nm
distance between the proposed facilities of each lessee along the lease
boundary. These setback distances are based on USCG recommendations for
prior lease sales for which development was expected to include fixed
offshore wind foundations (BOEM has included similar lease stipulations
for such sales where there were adjacent leases). Given the expectation
that offshore wind development in the Gulf of Maine will necessitate
floating foundations, BOEM requests comments on this proposed
stipulation, particularly the required setback distances and whether
setbacks should prohibit both surface and subsurface structures (i.e.,
floating foundations, mooring lines, anchor structures, or inter-array
cables).
c. Corridors between Leases: Members of the fishing community have
requested that offshore wind energy facilities be designed in a manner
that, among other things, provides for uninterrupted transit to fishing
grounds where relevant. Within the southern region of the Final WEA,
east of Massachusetts, BOEM has created three corridors between leases
to facilitate existing and future transit through proposed lease
areas.\4\ These areas occur in a Northwest to Southeast direction, as
well as in an East and West direction, and have a minimum width of 2.5
nautical miles (nm). The width of these areas was adapted from the New
York Bight leasing process, which resulted in 2.44 nm corridors between
lease areas (see <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>). As stated in the New York Bight FSN (BOEM-
2022-0001), BOEM used
[[Page 35225]]
calculations and guidelines published by the Permanent International
Association of Navigation Congresses World Association of Waterborne
Transport Infrastructure and Maritime Institute in the Netherlands, as
well as the USCG draft Port Access Route Study (USCG-2020-0172) to
inform that analysis.
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\4\ BOEM does not have the authority to designate transit lanes.
The United States Coast Guard's (USCG) authority to provide safe
access routes for the movement of vessel traffic is found in the
Ports and Waterways Safety Act. See 46 U.S.C. 70003.
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Bidders should be aware that BOEM may include a lease stipulation
in the FSN that addresses corridors between leases, pending the outcome
of additional discussions with ocean users and stakeholders as well as
consideration of comments submitted in response to this PSN.
d. Areas of No Surface or Subsurface Occupancy: To accommodate the
desired distances between surface and subsurface structures (i.e., 2.5
nm width of the designated corridors between leases described above),
select portions of the lease areas in the southern portion of the Gulf
of Maine WEA (OCS-A 0564, 0567, 0568, 0569) will be offered for sale,
but no surface or subsurface occupancy will be permitted, as described
in Addendum A of each respective lease.
e. Stellwagen Bank National Marine Sanctuary: The Gulf of Maine WEA
lies adjacent to the Stellwagen Bank National Marine Sanctuary. Should
a lease be issued within the WEA, future offshore wind development may
necessitate installation of energy transmission cables within the
sanctuary boundaries in identified cable corridors. NOAA has advised
BOEM that they may consider authorizing installation of energy
transmission cables within sanctuary boundaries under the authority of
the National Marine Sanctuaries Act, through one or more of the
following mechanisms--General Permits, Authorizations, Certifications,
and Special Use Permits.
f. Potential Future Restrictions to Mitigate Potential Conflicts
with Department of Defense (DOD) Activities: Those interested in
bidding should be aware of potential conflicts with DOD's existing uses
of the OCS. BOEM coordinates with DOD throughout the leasing process.
This included consultation with the Military Aviation and Installation
Assurance Siting Clearinghouse, which conducted a DOD assessment of the
Gulf of Maine Draft WEA. The assessment identified potential impacts,
which are described below.
i. Air Surveillance and Radar: The North American Aerospace Defense
Command (NORAD) mission may be affected by development of the Lease
Areas. Similar impacts have been encountered with other Lease Areas
along the Atlantic Coast and have been largely if not entirely
mitigated. Considering both the expected height of offshore turbines
and future cumulative wind turbine effects, adverse impacts can be
mitigated through the use of Radar Adverse-impact Management (RAM) \5\
and overlapping radar coverage. For projects where RAM mitigation is
acceptable, BOEM anticipates including the following project approval
conditions:
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\5\ RAM is the technical process designed to minimize the
adverse impact of obstruction interference on a radar system.
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(1) Lessee will notify NORAD when the project is within 30-60 days
of completion of commissioning of the last wind turbine generator (WTG)
(meaning every WTG in the Project is installed with potential for blade
rotation), and again when the project is complete and operational, for
RAM scheduling;
(2) Lessee will contribute funds to DOD in the amount of no less
than $80,000 toward the cost of DOD's execution of the RAM procedures
for each radar system affected; and
(3) Lessee will curtail wind turbine operations for national
security or defense purposes as described in the lease.
ii. Department of Navy operations: While the Navy did not identify
any conflicts with the Final WEA, mitigations to resolve potential
conflicts with ship testing may be necessary depending on the specific
projects proposed within the Lease Areas.
BOEM may require the lessee to enter into an agreement with DOD to
implement any necessary conditions and mitigate any identified impacts.
BOEM will further coordinate with DOD and the lessee to eliminate
potential conflicts throughout the project review stage, which may
result in adding mitigation measures or terms and conditions as part of
any plan approval.
g. Potential Future Restrictions to Mitigate Potential Conflicts
with Sand Resources: Potential bidders are advised that BOEM has
identified sand resource areas in aliquots offshore the Gulf of Maine
(MMIS Application <a href="https://mmis.doi.gov/BOEMMMIS">https://mmis.doi.gov/BOEMMMIS</a>). OCS sand resource
areas are composed of sand deposits found on or below the surface of
the OCS seabed. There is potential for sand resources to exist in other
areas in the Gulf of Maine not currently identified in aliquots. If it
is determined that accessible and significant OCS sand resources may be
impacted by a proposed activity, BOEM may require potential bidders to
undertake measures deemed economically, environmentally, and
technically feasible to protect the resources to the maximum extent
practicable, including minimizing, avoiding, and mitigating impact to
these resources. Measures may include modification of proposed
transmission corridor locations if warranted. Neither BOEM nor the
Bureau of Safety and Environmental Enforcement will approve future
requests for in-place decommissioning of submarine cables in sand
resource areas unless BOEM has determined that the submarine cables do
not unduly interfere with other uses of the OCS, specifically sand
resource use.
h. Potential Future Restrictions to Mitigate Possible Conflicts
with Deep-Sea Corals and Biologically Sensitive Benthic Habit:
Potential bidders are advised that in the Gulf of Maine Final WEA, BOEM
has identified the presence of deep-sea corals and sponges, as well as
hardbottom habitat areas suitable for sensitive deep-sea coral and
sponge species. BOEM anticipates that any site assessment activities
and site characterization activities within the Gulf of Maine
authorized by a lease would be subject to the protections for live-
bottom features included in BOEM's programmatic consultation with the
National Marine Fisheries Service under ESA section 7 (see Addendum C,
section 5.2 in the Gulf of Maine leases).\6\ BOEM will conduct
additional environmental review upon receipt of a lessee's COP and, as
a condition of approval, may require avoidance measures to reduce
potential impacts to sensitive benthic species and habitat within the
Lease Area.
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\6\ Project Design Criteria 1: Avoid Live Bottom Features. Best
Management Practice: All vessel anchoring and any seafloor-sampling
activities (i.e., drilling or boring for geotechnical surveys) are
restricted from seafloor areas with consolidated seabed features.
All vessel anchoring and seafloor sampling must also occur at least
150 m from any known locations of threatened or endangered coral
species. All sensitive live bottom habitats (eelgrass, cold-water
corals, etc.) should be avoided as practicable. All vessels in
coastal waters will operate in a manner to minimize propeller wash
and seafloor disturbance and transiting vessels should follow deep-
water routes (e.g., marked channels), as practicable, to reduce
disturbance to sturgeon and sawfish habitat. <a href="https://www.boem.gov/renewable-energy/final-nlaa-osw-programmatic">https://www.boem.gov/renewable-energy/final-nlaa-osw-programmatic</a>.
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III. Participation in the Proposed Lease Sale
a. Bidder Participation: Entities that have been notified by BOEM
that their qualification is pending or that they are qualified to
participate in any Gulf of Maine auction through their response to the
RFI or Call, or by separate submission of qualification materials, are
not required to take any additional
[[Page 35226]]
action to affirm their interest. Those entities are listed below:
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Company
Company name No.
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Avangrid Renewables, LLC..................................... 15019
Equinor Wind US LLC.......................................... 15058
US Mainstream Renewable Power Inc............................ 15089
Diamond Wind North America, LLC.............................. 15113
Hexicon USA, LLC............................................. 15151
TotalEnergies SBE US, LLC.................................... 15165
Pine Tree Offshore Wind, LLC................................. 15167
OW Gulf of Maine LLC......................................... 15175
Repsol Renewables North America, Inc......................... 15180
Maine Offshore Wind Development LLC.......................... 15181
Corio USA Projectco LLC...................................... 15182
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All other entities wishing to participate in any Gulf of Maine
auction must submit the required qualification materials to BOEM by the
end of the 60-day comment period for this PSN.
b. Affiliated Entities: On the Bidder's Financial Form (BFF),
discussed below, eligible bidders must list any other eligible bidders
with whom they are affiliated. For the purpose of identifying
affiliated entities, a bidding entity is any individual, firm,
corporation, association, partnership, consortium, or joint venture
(when established as a separate entity) that is participating in the
same auction. BOEM considers bidding entities to be affiliated when:
i. They own or have common ownership of more than 50 percent of the
voting securities, or instruments of ownership or other forms of
ownership, of another bidding entity. Ownership of less than 10 percent
of a bidding entity constitutes a presumption of non-control that BOEM
may rebut.
ii. They own or have common ownership of between 10 percent and up
to including 50 percent of the voting securities or instruments of
ownership, or other forms of ownership, of another bidding entity, and
BOEM determines that there is control upon consideration of factors
including the following:
(1) The extent to which there are common officers or directors.
(2) With respect to the voting securities, or instruments of
ownership or other forms of ownership: the percentage of ownership or
common ownership, the relative percentage of ownership or common
ownership compared to the percentage(s) of ownership by other bidding
entities, if a bidding entity is the greatest single owner, or if there
is an opposing voting bloc of greater ownership.
(3) Shared ownership, operation, or day-to-day management of a
lease, grant, or facility as those terms are defined in BOEM's
regulations at 30 CFR 585.113.
iii. They are both direct or indirect subsidiaries of the same
parent company.
iv. If, with respect to any lease(s) offered in this auction, they
have entered into an agreement prior to the auction regarding the
shared ownership, operation, or day-to-day management of such lease.
v. Other evidence indicates the existence of power to exercise
control, such as evidence that one bidding entity has power to exercise
control over the other, or that multiple bidders collectively have the
power to exercise control over another bidding entity or entities.
Affiliated entities are not permitted to compete against each other
in the auction. Where two or more affiliated entities have qualified to
bid in the auction, the affiliated entities must decide prior to the
auction which one (if any) will participate in the auction. If two or
more affiliated entities attempt to participate in the auction, BOEM
will disqualify those bidders from the auction.
IV. Questions for Stakeholders
Stakeholders are encouraged to comment on any matters related to
this proposed lease sale that are of interest or concern. BOEM has
identified the following issues as particularly important, and we
encourage commenters to address these issues specifically:
a. Number, size, orientation, and location of the proposed Lease
Areas: BOEM is seeking feedback on the proposed number, size,
orientation, and location of the Lease Areas and welcomes comments on
which Lease Areas, if any, should be prioritized for inclusion, or
exclusion, from this lease sale. BOEM is also open to comment on areas
of the WEA that were not included as Lease Areas.
b. Considerations for delineation of the proposed Lease Areas:
These delineation considerations may include comparable commercial
viability and size; prevailing wind direction and minimizing wake
effects; maximized energy generating potential; mooring system anchor
footprints and extents; possible setbacks at Lease Area boundaries;
distance to shore, port infrastructure and electrical grid
interconnections; and fair return to the Federal Government pursuant to
the OCS Lands Act through competition for commercially viable Lease
Areas. Additional comments are welcome regarding other considerations
for delineating Lease Areas.
c. Existing uses and how they may be affected by the development of
the proposed Lease Areas: BOEM asks commenters to submit technical and
scientific data in support of their comments.
d. Baseline Monitoring: BOEM is considering a lease stipulation
that would require Lessees to conduct baseline data collection
activities for endangered and threatened marine mammals and their
habitats in support of developing their construction and operations
plans. BOEM requests comments on the scope of this potential
requirement, including (but not limited to) priority information on
species and habitats, methods to collect that data, regional
collaboration, data sharing, and data management.
e. Corridors between Leases: BOEM welcomes comments on the
potential effects of the proposed lease areas on existing vessel
traffic, especially commercial maritime and fishing vessels. BOEM
requests comments on the width, location, and orientation of corridors
and how that would facilitate continuance of existing transit.
f. Limits on the Number of Lease Areas per Bidder: BOEM is
proposing to allow each qualified entity to bid for and ultimately win
a maximum of two leases each, including a maximum of one Lease Area in
the North Region as shown in Table 2. As proposed, a bidder can bid for
and win a maximum of two South Region leases, or one North Region lease
and one South Region lease--but cannot bid for or win both North Region
leases. BOEM is seeking feedback on this proposal, including feedback
on how different leasing scenarios (e.g., number of Lease Areas
offered, size of Lease Areas, etc.) may influence the advisability of
such a limitation.
Table 2--Gulf of Maine Proposed Lease Areas and Regions
[Preferred option]
------------------------------------------------------------------------
Lease Area ID Region Acres
------------------------------------------------------------------------
OCS-A 0562........................ North............... 121,339
[[Page 35227]]
OCS-A 0563........................ North............... 132,369
OCS-A 0564........................ South............... 110,308
OCS-A 0565........................ South............... 115,290
OCS-A 0566........................ South............... 127,388
OCS-A 0567........................ South............... 123,118
OCS-A 0568........................ South............... 134,149
OCS-A 0569........................ South............... 106,038
------------------------------------------------------------------------
Alternatively, BOEM could configure the leases into three regions,
as shown in Table 3. BOEM would allow each qualified entity to bid for
and ultimately win a maximum of two leases each, including a maximum of
one Lease Area in each region. BOEM is seeking feedback on this
alternative option.
Table 3--Gulf of Maine Proposed Lease Areas and Regions
[Alternative option]
------------------------------------------------------------------------
Lease area ID Region Acres
------------------------------------------------------------------------
OCS-A 0562........................ North............... 121,339
OCS-A 0563........................ North............... 132,369
OCS-A 0564........................ South............... 110,308
OCS-A 0565........................ East................ 115,290
OCS-A 0566........................ East................ 127,388
OCS-A 0567........................ South............... 123,118
OCS-A 0568........................ South............... 134,149
OCS-A 0569........................ South............... 106,038
------------------------------------------------------------------------
V. Proposed Lease Sale Deadlines and Milestones
This section describes the major deadlines and milestones in the
lease sale process from publication of this PSN to execution of a
lease.
a. The PSN Comment Period:
i. Submit Comments: The public is invited to submit comments during
the 60-day period expiring on July 1, 2024. All comments received or
postmarked during the comment period will be made available to the
public and considered by BOEM prior to publication of the FSN.
ii. Public Auction Seminar: BOEM will host a public seminar to
discuss the lease sale process and the auction format. The time and
place of the seminar will be announced by BOEM and published on the
BOEM website at <a href="https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine">https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine</a>. No registration or RSVP is required to attend.
iii. Submit Qualification Materials: Prospective bidders who want
to participate in the proposed lease sale must ensure that BOEM
receives your qualification materials by July 1, 2024. This requirement
includes all materials sufficient to establish a company's legal,
technical, and financial qualifications pursuant to 30 CFR
585.107-.108. To qualify to participate in the proposed lease sale,
qualification materials must be developed in accordance with the
guidelines available at <a href="https://www.boem.gov/Renewable-Energy-Qualification-Guidelines">https://www.boem.gov/Renewable-Energy-Qualification-Guidelines</a>. BOEM will inform you if you are qualified to
participate in the auction.
iv. Confidential information. If you wish to protect the
confidentiality of your comments or qualification materials, clearly
mark the relevant sections and request that BOEM treat them as
confidential. Please label privileged or confidential information with
the caption ``Contains Confidential Information'' and consider
submitting such information as a separate attachment. Treatment of
confidential information is addressed in section XXI entitled
``Protection of Privileged or Confidential Information.'' Information
that is not labeled as privileged or confidential will be regarded by
BOEM as suitable for public release.
b. End of PSN Comment Period to FSN Publication:
i. Review Comments: BOEM will review all comments submitted in
response to the PSN during the comment period.
ii. Finalize Qualifications Reviews: Prior to the publication of
the FSN, BOEM will complete review of bidder qualification materials
submitted during the PSN comment period. The final list of eligible
bidders will be published in the FSN.
iii. Prepare the FSN: BOEM will prepare the FSN by updating or
modifying information contained in the PSN where necessary.
iv. Publish FSN: BOEM will publish the FSN in the Federal Register
at least 30 days before the date of the sale.
c. FSN Waiting Period: During the period between FSN publication
and the lease auction, qualified bidders would be required to take
several steps to remain eligible to participate in the auction.
i. Bidder's Financial Form: Each bidder must submit a BFF to BOEM
to participate in the auction. The BFF must include the bidder's
Conceptual Strategy for each non-monetary bidding credit for which that
bidder wishes to be considered. If a bidder seeks to qualify for the
same bidding credit in more than one region, the bidder must submit one
bidding credit Conceptual Strategy. If, for a given bidding credit,
there are any differences in the strategy for each region, the bidder
must explicitly identify them in the Conceptual Strategy. BOEM must
receive each bidder's BFF no later than the date listed in the FSN.
BOEM may consider extensions to this deadline only if BOEM determines
that the failure to timely submit a BFF was caused by events beyond the
bidder's control. The proposed BFF can be downloaded at: https://
www.boem.gov/renewable-
[[Page 35228]]
energy/state-activities/maine/gulf-maine.
(1) Once BOEM has processed a bidder's BFF, the bidder will be
allowed to log into <a href="https://www.pay.gov">https://www.pay.gov</a> and submit a bid deposit. For
purposes of this auction, BOEM will not consider BFFs submitted by
bidders for previous lease sales. An original signed BFF may be mailed
to BOEM's Office of Renewable Energy Programs for certification. A
signed copy of the form may be submitted in PDF format to
<a href="/cdn-cgi/l/email-protection#6a180f040f1d0b08060f0f040f180d132a560b4a02180f0c57" http: boem.gov">boem.gov</a>">renewableenergy@<a href="http://boem.gov">boem.gov</a></a>. A faxed copy will not be accepted. BFF
submissions must be accompanied by a transmittal letter on company
letterhead.
(2) The BFF must be executed by an authorized representative listed
on the bidder's legal qualifications in the BFF, in accordance with 18
U.S.C. 1001 (fraud and false statements).
(3) Additional information regarding the BFF may be found below in
section IX entitled ``Bidder's Financial Form.''
ii. Bid Deposit: Each qualified bidder must submit a bid deposit of
$2,000,000 for one Lease Area. If the FSN allows bidders to bid for and
potentially win more than one Lease Area, each qualified bidder must
submit a bid deposit of $2,000,000 per Lease Area sought. For example,
if a qualified bidder wants to bid for and seek to win two Lease Areas,
they will need to submit a bid deposit of $4,000,000. Further
information about bid deposits can be found below in section X ``Bid
Deposit.''
d. Notification of Eligibility for Non-Monetary Credits: BOEM will
notify each bidder of their eligibility for bidding credits prior to
the Mock Auction.
e. Mock Auction: BOEM will hold a Mock Auction that is open only to
qualified bidders who have met the requirements and deadlines for
auction participation, including submission of the bid deposit. The
Mock Auction is intended to give bidders an opportunity to clarify
auction rules, test the functionality of the auction software, and
identify any potential issues that may arise during the auction. Final
details of the Mock Auction will be provided in the FSN.
f. The Auction: BOEM, through its contractor, will hold an auction
as described in the FSN. The auction will take place no sooner than 30
days following the publication of the FSN in the Federal Register. The
estimated timeframes described in this PSN assume the auction will take
place approximately 45 days after the publication of the FSN. Final
dates will be included in the FSN. BOEM will announce the provisional
winners of the lease sale after the auction ends.
g. From the Auction to Lease Execution:
i. Refund Non-Winners: Once the provisional winners have been
announced, BOEM will provide the non-winners with a written explanation
of why they did not win and will return their bid deposits.
ii. Department of Justice (DOJ) Review: DOJ will have up to 30 days
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 provisional winner, with instructions on how to execute the lease.
Once the lease has been fully executed, a provisional winner becomes an
auction winner. The first year's rent is due 45 days after the auction
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 winning bids (i.e., winning bids minus
applicable bid deposit and any applicable non-monetary bidding
credits), and sign and return the three executed lease copies. The
winners may request extensions and BOEM may grant such extensions if
BOEM determines the delay was 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.
VI. 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.
VII. Lease Terms and Conditions
Along with this PSN, BOEM has made available the proposed terms,
conditions, and stipulations for the commercial leases that would be
offered through this proposed sale. BOEM reserves the right to require
compliance with additional terms and conditions associated with the
approval of a site assessment plan (SAP) and COP. The proposed lease
may be found on BOEM's website at: <a href="https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine">https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine</a>. Each lease would include the
following attachments:
a. Addendum A (``Description of Leased Area and Lease
Activities'');
b. Addendum B (``Lease Term and Financial Schedule'');
c. Addendum C (``Lease-Specific Terms, Conditions, and
Stipulations''); and
d. Addendum D (``Project Easement'').
Addenda ``A,'' ``B,'' and ``C'' provide detailed descriptions of
proposed lease terms and conditions. Addendum ``D'' will be completed
at the time of COP approval or approval with modifications. After
considering comments on the PSN and the proposed lease, BOEM will
publish final lease terms and conditions in the FSN.
VIII. Lease Financial Terms and Conditions
This section provides an overview of the required annual payments
and financial assurances under the lease. Please see the proposed lease
for more detailed information, including any changes from past
practices.
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 days after the
lessee receives the unexecuted lease copies from BOEM. Lease area
acreage is delineated in Addendum A of the lease and, if applicable,
includes portions of a lease that do not allow surface occupancy.
Thereafter, annual rent payments are due on the anniversary of the
effective date of the lease (the ``Lease Anniversary''). Once
commercial operations under the lease begin, BOEM will charge rent only
for the portions of the Lease Area remaining undeveloped (i.e., non-
generating acreage), as described in the lease. For example, for the
121,339 acres of Lease OCS-A 0562, the rent payment would be $364,017
per year until commercial operations begin.
If the lessee submits an application for relinquishment of a
portion of its leased area within the first 45 days after receiving the
lease copies from BOEM and BOEM approves that application, no rent
payment would be due on the relinquished portion of the Lease Area.
Later relinquishments of any portion of the Lease Area would reduce the
lessee's rent payments starting in the year following BOEM's approval
of the relinquishment.
A lease issued under this part confers on the Lessee the right to
one or more project easements, without further competition, for the
purpose of installing gathering, transmission, and distribution cables,
pipelines, and appurtenances on the OCS as necessary for the full
enjoyment of the lease. A Lessee must apply for the project easement as
part of the COP or SAP, as
[[Page 35229]]
provided under subpart F of 30 CFR part 585.
The lessee also must pay rent for any project easement associated
with the lease. Rent commences on the date that BOEM approves the COP
that describes the project easement (or any modification of such COP
that affects the easement acreage), as outlined in 30 CFR 585.507. If
the COP revision results in increased easement acreage, additional rent
would be due at the time the COP revision is approved. Annual rent for
a project easement is the greater of $5 per acre per year or $450 per
year.
b. Operating Fee: For purposes of calculating the initial annual
operating fee under 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 must be paid within 90
days of the commencement of commercial operations. Thereafter,
subsequent annual operating fees must be paid on or before the Lease
Anniversary.
The subsequent annual operating fees will be 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 will be the
product of the project's annual nameplate capacity, the total number of
hours in a 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 976-megawatt (MW)
wind facility operating at a 40 percent capacity (i.e., capacity factor
of 0.4) with a regional wholesale power price of $40 per megawatt hour
(MWh) and an operating fee rate of 0.02 would be calculated as follows:
[GRAPHIC] [TIFF OMITTED] TN01MY24.047
i. Operating Fee Rate: The operating fee rate is the share of the
imputed wholesale market value of the projected annual electric power
production due to the Office of Natural Resources Revenue (ONRR) as an
annual operating fee. For the Lease Areas, BOEM proposes to set the fee
rate at 0.02 (2 percent) for the entire life of commercial operations.
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.
iii. Capacity Factor: BOEM proposes to set the capacity factor at
0.4 (i.e., 40 percent) for the year in which the commercial operations
begin and for the first 6 years of commercial operations on the lease.
At the end of the sixth year, BOEM may adjust the capacity factor to
reflect the performance over the previous 5 years based upon the actual
metered electricity generation at the delivery point to the electrical
grid. BOEM may make similar adjustments to the capacity factor once
every 5 years thereafter.
iv. Wholesale Power Price Index: Under 30 CFR 585.506(c)(2)(i), the
wholesale power price, expressed in dollars per MWh, is determined at
the time each annual operating fee payment is due. For the leases
offered in this sale, BOEM proposes to use the ISO New England
H.INTERNAL_HUB. A similar price dataset may also be used and may be
posted by BOEM at <a href="http://boem.gov">boem.gov</a> for reference.
c. Financial Assurance: Within 10-business days after receiving the
unexecuted lease copies and pursuant to 30 CFR 585.515-585.516, the
provisional winners would be required to provide an initial lease-
specific bond or other BOEM-approved financial assurance instrument in
the amount of $100,000. The provisional winners may meet financial
assurance requirements by posting a surety bond or other financial
assurance instrument or alternative as detailed in 30 CFR 585.526-
585.529. BOEM encourages the provisional winners to discuss financial
assurance requirements with BOEM as soon as possible after the auction
has concluded.
BOEM will base the amount of financial assurance (for all SAP, COP,
and decommissioning activities) on cost estimates for meeting all
accrued lease obligations at the respective stages of development. The
required amount of supplemental and decommissioning financial assurance
will be determined on a case-by-case basis.
The financial terms described above can be found in Addendum ``B''
of the lease, which is available at: <a href="https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine">https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine</a>.
IX. Bidder's Financial Form
Each bidder must submit to BOEM the information listed in the BFF
referenced in this PSN. A copy of the proposed form is available at
<a href="https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine">https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine</a>. BOEM recommends that each bidder designate an email address in
its BFF that the bidder will use to create an account in <a href="https://www.pay.gov">https://www.pay.gov</a> (if it has not already done so). BOEM will not consider
previously submitted BFFs for previous lease sales to satisfy the
requirements of this auction. BOEM must receive each BFF, including any
Conceptual Strategy(ies), by the deadline set in the FSN. BOEM may
consider BFFs, including any Conceptual Strategy(ies), that are
submitted after the deadline set in the FSN if BOEM determines that the
failure to timely submit the BFF was caused by events beyond the
bidder's control. The BFF is required to be executed by an authorized
representative listed in the bidder's qualification package on file
with BOEM.
X. Bid Deposit
Each qualified bidder must submit a bid deposit no later than the
date listed in the FSN. Typically, the deadline is approximately 30
days after the publication of the FSN. BOEM may consider requests for
extensions of this deadline only if BOEM determines that the failure to
timely submit the bid deposit was caused by events beyond the bidder's
control.
Following the auction, bid deposits will be applied against the
winning bid and other obligations owed to BOEM. If a bid deposit
exceeds that bidder's total financial obligation, BOEM will refund the
balance of the bid deposit to the bidder. BOEM will refund bid deposits
to the unsuccessful bidders once BOEM has announced the provisional
winners.
[[Page 35230]]
If BOEM offers a lease to a provisional winner and that bidder
fails to timely return the signed lease, establish financial assurance,
or pay the balance of its bid, BOEM will retain the bidder's $2,000,000
bid deposit for the Lease Area. In such a circumstance, BOEM reserves
the right to offer a lease for that Lease Area to the next highest
bidder as determined by BOEM.
XI. Minimum Bid
The minimum bid is the lowest dollar amount per acre that BOEM will
accept as a winning bid and is the amount at which BOEM will start the
bidding in the auction. BOEM proposes a minimum bid of $50.00 per acre
for this lease sale.
XII. Auction Procedures
a. Multiple-Factor Bidding Auction: As authorized under 30 CFR
585.220(a)(4) and 585.221(a)(6), BOEM proposes to use a multiple-factor
auction format for this lease sale. Under BOEM's proposal, the bidding
system for this lease sale will be a combination of monetary and non-
monetary factors. The bid made by a particular bidder in each round
will represent the sum of the monetary factor (cash bid) and the value
of any non-monetary factors in the form of bidding credits. BOEM
proposes to start the auction using the minimum bid price for the Lease
Areas and to increase these prices incrementally until no more than one
bidder remains bidding on each Lease Area in the auction. For this
sale, BOEM is calculating bidding credits as a percentage of the whole
bid, which is a change from the method used in sales held prior to
2024, where bidding credits were calculated as a percentage of the cash
portion of the bid. The intended purpose of this change is to simplify
the bidding credit calculation. BOEM is proposing to grant bidding
credits to bidders that commit to one or both of the following:
i. supporting workforce training programs for the floating offshore
wind industry or supporting the development of a domestic supply chain
for the floating offshore wind industry, or a combination of both; or
ii. establishing and contributing to a fisheries compensatory
mitigation fund or contributing to an existing fund to mitigate
potential negative impacts to commercial and for-hire recreational
fisheries caused by offshore wind development in the Gulf of Maine.
These bidding credits are intended to:
i. enhance, through training, the floating offshore wind workforce
and/or enhance the establishment of a domestic supply chain for
floating offshore wind manufacturing, assembly, or services, both of
which will contribute to the expeditious and orderly development of
offshore wind resources on the OCS;
ii. support the expeditious and orderly development of OCS
resources by mitigating potential direct impacts from proposed projects
and encouraging the investment in infrastructure germane to the
floating offshore wind industry; and
iii. minimize potential economic effects on commercial fisheries
impacted by potential floating offshore wind development, as
cooperation with commercial fisheries impacted by OCS operations will
enable development of the Lease Area to advance.
If a bidder qualifies to bid for a Lease Area in more than one
region and seeks to qualify for a bidding credit, the bidder must
submit one bidding credit Conceptual Strategy, which must explicitly
identify any differences in the strategy for each region.
b. Changes to Auction Rules: BOEM will be employing new auction
software for sales held in 2024. The auction format remains an
ascending clock auction with multiple-factor bidding. The new software
makes five primary changes have been made to the ascending clock
auction rules in the new software, described below.
i. If a bidder decides to bid on a different Lease Area in a given
round of the auction, it may submit a bid to reduce demand for the
Lease Area it bid on in the previous round and, simultaneously, submit
a bid to increase demand for another Lease Area. This allows a bidder
the option to switch to another Lease Area if the price of the first
Lease Area exceeds the specified bid price.
ii. Provisional winners will no longer be determined using a two-
step process. The auction rules are implemented in a way such that,
when the auction concludes, the bidder who remains on a Lease Area
after the final round becomes its provisional winner. There will be no
additional processing step.
iii. The auctions will use a `second price' rule. A given Lease
Area will be won by the bidder that submitted the highest bid amount
for the Lease Area, but the winning bidder will pay the highest bid
amount at which there was competition (i.e., the `second price').
iv. Each bidder's bidding credit will be expressed directly as a
percentage of the final price for the lease.
v. For sales in which bidders are allowed to bid for and
potentially acquire two or more Lease Areas, any bid for two or more
Lease Areas will be treated as independent bids for those Lease Areas,
rather than as a package bid.
All five of these changes are applicable to the ATLW-11 sale, as
proposed in this PSN. All potential bidders should review the complete
Auction Procedures for Offshore Wind Lease Sales (Version 1) located
at: <a href="https://www.boem.gov/renewable-energy/lease-and-grant-information">https://www.boem.gov/renewable-energy/lease-and-grant-information</a>.
c. The Auction: Using an online bidding system to host the auction,
BOEM will start the bidding for the Lease Areas as described below.
Table 4--Gulf of Maine Proposed Lease Areas and Minimum Bids
----------------------------------------------------------------------------------------------------------------
Lease area ID Region Acres Minimum bid
----------------------------------------------------------------------------------------------------------------
OCS-A 0562.................................... North........................... 121,339 6,066,950
OCS-A 0563.................................... North........................... 132,369 6,618,450
OCS-A 0564.................................... South........................... 110,308 5,515,400
OCS-A 0565.................................... South........................... 115,290 5,764,500
OCS-A 0566.................................... South........................... 127,388 6,369,400
OCS-A 0567.................................... South........................... 123,118 6,155,900
OCS-A 0568.................................... South........................... 134,149 6,707,450
OCS-A 0569.................................... South........................... 106,038 5,301,900
----------------------------------------------------------------------------------------------------------------
BOEM is proposing to allow each qualified entity to bid for and
ultimately win a maximum of two leases each, including a maximum of one
Lease Area in the North Region as shown in Table 4. As proposed, a
bidder can bid for and win a maximum of two South Region leases, or one
North Region lease and one South Region lease--but cannot bid for or
win both North Region leases. BOEM is also soliciting comments on an
[[Page 35231]]
alternative approach with three regions as discussed in section IV.f.
The auction will be conducted in a series of rounds. Before each
round, the auction system will announce the prices for each Lease Area
offered in the auction. In Round 1, there is a single price for each
Lease Area equal to the minimum bid price (also known as the `opening
price' or `clock price of Round 1'). Each bidder can bid, at the
opening prices, for as many Lease Areas as allowed by the FSN and the
bidder's bid deposit. After Round 1, the bidder's processed demand is
one for each Lease Area for which the bidder bid in Round 1.\7\ The
bidder's eligibility for Round 2 equals the number of Lease Areas for
which the bidder bid in Round 1.
---------------------------------------------------------------------------
\7\ Bidders specify their demand for a lease area with either a
0 or 1 in the auction system. A demand of 1 indicates the lease area
that they are bidding on. Processed demand is the demand, either 0
or 1, of a bidder for a lease area following the processing of the
bids for the round.
---------------------------------------------------------------------------
Starting in Round 2, each Lease Area is assigned a range of prices
for the round. The start-of-round price is the lowest price in the
range, and the clock price is the highest price in the range. A bidder
still eligible to bid after the previous round can either (i) continue
bidding at the new round's clock price(s) for the Lease Area(s) for
which the bidder's processed demand is one or (ii) submit a bid(s) to
reduce demand for one (or more) Lease Area(s) at any price(s) in the
range(s) for that round. A bid to reduce demand at some price indicates
that the bidder is not willing to acquire that Lease Area at a price
exceeding the specified bid price. A bidder that bids to reduce demand
for one or two Lease Areas could bid to increase demand up to the same
number of other Lease Areas in the same round.
If an eligible bidder does not place a bid during the round for a
Lease Area for which the bidder's processed demand is one, the auction
system will consider this a request to reduce demand for that Lease
Area at the round's start-of-round price. The bidder can nonetheless
win that Lease Area if it is the last remaining bidder for that Lease
Area.
After each round, the auction system processes the bids and
determines each bidder's processed demand for each Lease Area and the
posted prices for the Lease Areas. The bidder's eligibility for the
next round will equal the number of Lease Areas for which the bidder
had processed demand of one. If, after any round, a bidder's processed
demand is zero for every Lease Area, the bidder's eligibility drops to
zero and the bidder can no longer participate in the auction. The
posted price is the price determined for each Lease Area after
processing of all bids for a round. If only one bidder remains on a
Lease Area, the posted price reflects the ``second price'' (i.e., the
highest price at which there was competition for the Lease Area).\8\
The posted price for a Lease Area after each round becomes the start-
of-round price for that Lease Area in the next round.
---------------------------------------------------------------------------
\8\ The Auction Procedures for Offshore Wind Lease Sales
provides details on how bids are prioritized and processed.
---------------------------------------------------------------------------
If, after the bids for the round have been processed, there is no
Lease Area with excess demand (i.e., no lease areas have more than one
bidder), the auction will end. When this occurs, each bidder with
processed demand of one for a Lease Area will become the provisional
winner for that Lease Area. Otherwise, the auction will continue with a
new round in which the start-of-round price for each Lease Area equals
the posted price of the previous round.
The increment by which the clock price exceeds the start-of-round
price 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 the increment as it deems appropriate.
The provisional winner of each Lease Area will pay the final posted
price (less any applicable bidding credit) or risk forfeiting its bid
deposit. A provisional winner will be disqualified if it is
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 must sign the applicable
lease documents, post financial assurance, and submit the outstanding
balance of its winning bid (i.e., winning bid minus the applicable bid
deposit and any applicable credits) within 10-business days of
receiving the lease copies, pursuant to 30 CFR 585.224. BOEM reserves
the right to not issue the lease to the provisionally winning bidder if
that bidder fails to: timely execute three copies of the lease and
return them to BOEM, timely post adequate financial assurance, timely
pay the balance of its winning bid, or otherwise comply with applicable
regulations or the terms of the FSN. In any of these cases, the bidder
will forfeit its bid deposit and BOEM reserves the right to offer a
lease to the next highest eligible bidder as determined by BOEM.
BOEM will publish the names of the provisional winners of the Lease
Areas and the associated prices shortly after the conclusion of the
sale. Full bid results, including round-by-round results of the entire
sale, will be published on BOEM's website after a review of the results
and announcement of the provisional winners.
Additional information regarding the auction format:
i. Authorized Individuals and Bidder Authentication: An entity that
is eligible to participate in the auction will identify on its BFF up
to three individuals who will be authorized to bid on behalf of the
company, including their names, business telephone numbers, and email
addresses. All individuals will log into the auction system using
<a href="http://login.gov">login.gov</a>. Prior to the auction, each individual listed on the BFF form
must obtain a Fast Identity Online (FIDO)-compliant security key, and
must register this security key on <a href="http://login.gov">login.gov</a> using the same email
address that was listed in the BFF. The <a href="http://login.gov">login.gov</a> registration,
together with the FIDO-compliant security key, will enable the
individual to log into the auction system. BOEM will provide
information on this process on its website.
After BOEM has processed the bid deposits, the auction contractor
will send an email to the authorized individuals, inviting them to
practice logging into the auction system on a specific day in advance
of the mock auction. The <a href="http://login.gov">login.gov</a> login process, along with the
authentication for the auction helpdesk, will also be tested during the
mock auction.
If an eligible bidder fails to submit a bid deposit or does not
participate in the first round of the auction, BOEM will deactivate
that bidder's login information.
ii. Timing of Auction: The FSN will provide specific information
regarding when bidders will be able to log into the auction system and
when the auction will start.
iii. Messaging Service: BOEM and the auction contractors will use
the auction system's messaging service to keep bidders informed on
issues of interest during the auction. For example, BOEM could change
the schedule at any time, including during the auction. If BOEM changes
the schedule during the auction, it will use the messaging service to
notify bidders that a revision has been made and will direct bidders to
the relevant page. BOEM will also use the messaging service for other
updates during the auction.
iv. Bidding Rounds: Bidders are allowed to place bids or to change
their bids at any time during the round. At
[[Page 35232]]
the top of the bidding page, a countdown clock shows how much time
remains in each round. Bidders will have until the end of the round to
place bids. Bidders should do so according to the procedures described
in the FSN and the Auction Procedures for Offshore Wind Lease Sales.
Information about the round results will be made available only after
the round has closed, so there is no strategic advantage to placing
bids early or late in the round.
The Auction Procedures for Offshore Wind Lease Sales elaborate on
the auction process described in this PSN. In the event of any
inconsistency among the Auction Procedures for Offshore Wind Lease
Sales, the Bidder Manual, and the FSN, the FSN is controlling.\9\
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\9\ The Bidder Manual is provided to the auction participants in
advance of the auction.
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v. Alternate Bidding Procedures: Redundancy is the most effective
way to mitigate technical and human issues during an auction. BOEM
strongly recommends that bidders consider authorizing more than one
individual to bid in the auction and confirming during the Mock Auction
that each authorized individual is able to access the auction system. A
mobile hotspot or other form 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. 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. The caller must also explain the reasons why a
telephone bid is necessary. BOEM may, in its sole discretion, permit or
refuse to accept a request for the placement of a bid using this
alternate telephonic bidding procedure. The auction help desk requires
codes from the Google Authenticator mobile application as part of its
procedure for identifying individuals who call for assistance. Prior to
the auction, all individuals listed on the BFF should download the
Google Authenticator mobile application \10\ onto their smartphone or
tablet.\11\ The first time the individual logs into the auction system,
the system will provide a QR token to be read into the Google
Authenticator application. This token is unique to the individual and
enables the Google Authenticator application to generate time-sensitive
codes that will be recognized by the auction system. When an individual
calls the auction help desk, the current code from the application must
be provided to the help desk representative as part of the user
authentication process. BOEM will provide information on this process
on its website.
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\10\ The Google Authenticator app must be installed from either
the Apple App Store or the Google Play Store.
\11\ Installing the Google Authenticator app is required only if
the app has not already been installed on the smartphone or tablet.
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d. 12.5 Percent Bidding Credit for Workforce Training or Supply
Chain Development or a Combination of Both: This proposed bidding
credit will allow a bidder to receive a credit of 12.5 percent in
exchange for a commitment to make a qualifying monetary contribution
(``Contribution''), in the same amount as the bidding credit received,
to programs or initiatives that support workforce training programs for
the U.S. floating offshore wind industry or development of a U.S.
domestic supply chain for the floating offshore wind industry, or both,
as described in the BFF Addendum and the lease. To qualify for this
credit, the bidder must commit to the bidding credit requirements on
the BFF and submit a Conceptual Strategy as described in the BFF
Addendum.
i. As proposed, the Contribution to workforce training must result
in a better trained and/or larger domestic floating offshore wind
workforce that will provide for more efficient operations via
increasing the supply of fully trained personnel. Training of existing
lessee employees, lessee contractors, or employees of affiliated
entities will not qualify as an appropriate contribution toward
fulfilling this bidding credit commitment.
ii. The Contribution to domestic supply chain development must
result in overall benefits to the U.S. floating offshore wind supply
chain available to all potential purchasers of floating offshore wind
services, components, or subassemblies, not solely the lessee's
project; and either: (i) the demonstrable development of new domestic
capacity (including vessels) or the demonstrable buildout of existing
capacity; or (ii) an improved floating offshore wind domestic supply
chain by reducing the upfront capital or certification cost for
manufacturing floating offshore wind components, including the building
of facilities, the purchasing of capital equipment, and the certifying
of existing manufacturing facilities.
iii. Contributions cannot be used to satisfy private cost shares
for any Federal tax or other incentive programs where cost sharing is a
requirement. No portion of the Contribution may be used to meet the
requirements of any other bidding credits for which the lessee
qualifies.
iv. Bidders interested in obtaining a bidding credit could choose
to contribute to workforce training programs, domestic supply chain
initiatives, or a combination of both. The Conceptual Strategy must
describe verifiable actions that the lessee will take that will allow
BOEM to confirm compliance once the lessee has submitted documentation
that shows it has satisfied the bidding credit commitment. The
Contribution must be tendered in full, and the lessee must provide
documentation evidencing it has made the Contribution and complied with
applicable requirements, no later than the date the lessee submits its
first Facility Design Report (FDR).
v. As proposed, Contributions to workforce training must promote
and support one or more of the following purposes: (i) Union
apprenticeships, labor management training partnerships, stipends for
workforce training, or other technical training programs or
institutions focused on providing skills necessary for the planning,
design, construction, operation, maintenance, or decommissioning of
floating offshore wind energy projects in the United States; (ii)
Maritime training necessary for the crewing of vessels to be used for
the construction, servicing, and/or decommissioning of wind energy
projects in the United States; (iii) Training workers in skills or
techniques necessary to manufacture or assemble floating offshore wind
components, subcomponents, or subassemblies (examples of areas
involving these skills and techniques include welding; wind energy
technology; hydraulic maintenance; braking systems; mechanical systems,
including blade inspection and maintenance; or computers and
programmable logic control systems); (iv) Tribal floating offshore wind
workforce development programs or training for employees of an Indian
Economic Enterprise \12\ in skills necessary in the floating offshore
wind industry; or (v) Training in any other job skills that the lessee
can demonstrate are necessary for the planning, design, construction,
operation, maintenance, or decommissioning of floating offshore wind
energy projects in the United States.
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\12\ <a href="https://www.bia.gov/sites/default/files/dup/assets/as-ia/ieed/Primer%20on%20Buy%20Indian%20Act%20508%20Compliant%202.6.18">https://www.bia.gov/sites/default/files/dup/assets/as-ia/ieed/Primer%20on%20Buy%20Indian%20Act%20508%20Compliant%202.6.18</a>(Reload).p
df.
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vi. As proposed, Contributions to domestic supply chain development
must promote and support one or more of the following: (i) Development
of a
[[Page 35233]]
domestic supply chain for the floating offshore wind industry,
including manufacturing of components and sub-assemblies and the
expansion of related services; (ii) Domestic Tier 2 and Tier 3 floating
offshore wind component suppliers and domestic Tier-1 supply chain
efforts, including quay-side fabrication; \13\ (iii) Technical
assistance grants to help U.S. manufacturers re-tool or certify (e.g.,
ISO-9001) for floating offshore wind manufacturing; (iv) Development of
Jones Act-compliant vessels for the construction, servicing, and/or
decommissioning of wind energy projects in the United States; (v)
Purchase and installation of lift cranes or other equipment capable of
lifting or moving foundations, towers, and nacelles quayside, or lift
cranes on vessels with these capabilities; (vi) Port infrastructure
directly related to floating offshore wind component manufacturing or
assembly of major floating offshore wind facility components; (vii)
Establishing a new or existing bonding support reserve or revolving
fund available to all businesses providing goods and services to
offshore wind energy companies, including disadvantaged businesses and/
or Indian Economic Enterprises; or (viii) Other supply chain
development efforts that the lessee can demonstrate advance the
manufacturing of floating offshore wind components or subassemblies or
the provision of floating offshore wind services in the United States.
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\13\ Tier-1 denotes the primary floating offshore wind
components such as the blades, nacelles, towers, foundations, and
cables. Tier 2 subassemblies are the systems that have a specific
function for a Tier 1 component. Tier 3 subcomponents are commonly
available items that are combined into Tier 2 subassemblies, such as
motors, bolts, and gears.
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vii. Documentation: If a lease is issued pursuant to a winning bid
that includes a bidding credit for workforce training or supply chain
development, the lessee must provide documentation showing that the
lessee has met the financial commitment before the lessee submits the
first FDR for the lease. The documentation must allow BOEM to
objectively verify the amount of the Contribution and the
beneficiary(ies) of the Contribution.
At a minimum, the documentation must include: all written
agreements between the lessee and beneficiary(ies) of the Contribution,
which must detail the amount of the Contribution(s) and how it will be
used by the beneficiaries of the Contribution(s) to satisfy the goals
of the bidding credit for which the Contribution was made; all receipts
documenting the amount, date, financial institution, and the account
and owner of the account to which the Contribution was made; and sworn
statements by the entity that made the Contribution and the
beneficiary(ies) of the Contribution attesting that all information
provided in the above documentation is true and accurate. The
documentation would need to describe how the funded initiative or
program has advanced, or is expected to advance, U.S. floating offshore
wind workforce training or supply chain development. The documentation
must also provide qualitative and/or quantitative information that
includes the estimated number of trainees or jobs supported, or the
estimated leveraged supply chain investment resulting or expected to
result from the Contribution. The documentation must contain any
information called for in the Conceptual Strategy that the lessee
submitted with its BFF and to allow BOEM to objectively verify (i) the
amount of the Contribution and the beneficiary(ies) of the
Contribution, and (ii) compliance with the bidding credit criteria
provided in Addendum ``C'' of the lease. If the lessee's implementation
of its Conceptual Strategy changes due to market needs or other
factors, the lessee must explain the changed approach. BOEM reserves
all rights to determine that bidding credit criteria have not been
satisfied if changes from the lessee's Conceptual Strategy result in
the lessee not meeting the criteria for the bidding credit described in
Addendum ``C'' of the lease.
viii. Enforcement: The commitment for the bidding credit must be
made in the BFF and would be included in a lease addendum that would
bind the lessee and all future assignees of the lease. If BOEM were to
determine that a lessee or assignee had failed to satisfy the
requirements of the bidding credit, or if a lessee were to relinquish
or otherwise fail to develop the lease by the tenth anniversary date of
lease issuance, the amount corresponding to the bidding credit awarded
would be immediately due and payable to ONRR with interest from the
lease Effective Date. The interest rate would be the underpayment
interest rate identified by ONRR. The lessee would not be required to
pay said amount if the lessee satisfied its bidding credit requirements
but failed to develop the lease by the tenth Lease Anniversary. BOEM
could, at its sole discretion, extend the documentation deadline beyond
the first FDR submission or extend the lease development deadline
beyond the 10-year timeframe.
e. 12.5 percent Bidding Credit for Fisheries Compensatory
Mitigation Fund: The second bidding credit proposed would allow a
bidder to receive a credit of 12.5 percent of its bid in exchange for a
commitment to establish and contribute to a Fisheries Compensatory
Mitigation Fund, or to contribute to a similar existing fund, to
compensate for potential negative impacts to commercial and for-hire
recreational fisheries. The term ``commercial fisheries'' refers to
commercial and processing businesses engaged in the act of catching and
marketing fish and shellfish for sale from the Gulf of Maine. The term
``for-hire recreational fisheries'' refers to charter and headboat
fishing operations involving vessels-for-hire engaged in recreational
fishing in the Gulf of Maine that are hired for a charter fee by an
individual or group of individuals for the exclusive use of that
individual or group of individuals. Lessees are encouraged to
contribute to a regional fund, such as the initiative by eleven East
Coast states to establish a regional fund that would provide financial
compensation for economic loss from offshore wind development off the
Atlantic Coast. At a minimum, the compensation must address the
following:
(1) Gear loss or damage; and
(2) Lost fishing income in Gulf of Maine wind energy Lease Areas.
The fisheries compensatory mitigation fund would assist commercial
and for-hire recreational fisheries directly impacted by income or gear
losses due to offshore wind activities on offshore wind leases or
easements and is intended to address the impacts identified in BOEM's
environmental and project reviews. The compensatory mitigation must
cover impacts that result directly from the preconstruction,
construction, operations and decommissioning of an offshore wind
project being developed in the Gulf of Maine wind energy leases or
easements. The fund must be established and the Contribution made
before the lessee submits the lease's first FDR or before the fifth
Lease Anniversary, whichever is sooner. To qualify for this credit, the
bidder must commit to the bidding credit requirements on the BFF and
submit a Conceptual Strategy as described in the BFF Addendum.
Bidders applying for the fisheries compensatory mitigation fund
bidding credit must submit their Conceptual Strategy along with their
BFF, further described below and in the BFF Addendum. The Conceptual
Strategy would describe the actions that the lessee intends to take
that would allow BOEM to verify compliance when the lessee seeks to
demonstrate satisfaction
[[Page 35234]]
of the requirements for the bidding credit. The lessee would be
required to provide documentation showing that the lessee has met the
commitment and complied with the applicable bidding credit requirements
before the lessee submits the lease's first FDR or before the fifth
Lease Anniversary, whichever is sooner.
As proposed, gear loss, damage, and fishing income loss claims
should be prioritized at each phase of offshore wind project
development, including impacts from surveys conducted before the
establishment of the fund. BOEM encourages lessees to coordinate with
other lessees to establish or contribute to a regional fund. A regional
fund should be flexible enough to incorporate future contributions from
future lease auctions and actuarially sound enough to recognize the
multi-decade life of offshore wind projects in the Gulf of Maine. While
the fund's first priority is to compensate for gear loss or damage and
income loss, funds that have been determined to be excess based on an
actuarial accounting may be used to:
i. Promote participation of fishers and fishing communities in the
project development process or other programs that better enable the
fishing and offshore wind industries to co-exist;
ii. Offset the cost of gear upgrades and transitions for operating
within a wind facility.
Any fund established or selected by the lessee to meet this bidding
credit requirement must include a process for evaluating the actuarial
status of funds at least every 5 years and publicly reporting
information on fund disbursement and administrative costs at least
annually.
The Fisheries Compensatory Mitigation Fund must be independently
managed by a third party and designed with fiduciary governance and
strong internal controls while minimizing administrative expenses. The
Contribution may be used for fund startup costs, but the Fund should
minimize costs by leveraging existing processes, procedures, and
information from the BOEM Draft Fisheries Mitigation Guidance, the
Eleven Atlantic States' Fisheries Mitigation Project, or other sources.
i. Documentation: As proposed, if a lease is awarded pursuant to a
winning bid that includes a Fisheries Compensatory Mitigation Fund
Bidding Credit, the lessee must provide written documentation to BOEM
that demonstrates that it completed the fund Contribution before it
submits the lease's first FDR or before the fifth Lease Anniversary,
whichever is sooner. The documentation must enable BOEM to objectively
verify the Contribution has met all applicable requirements as outlined
in Addendum ``C'' of the lease.
ii. At a minimum, this documentation must include:
(1) The procedures established to compensate for gear loss or
damage resulting from all phases of the project development on the
Lease Area (pre-construction, construction, operation, and
decommissioning);
(2) The Fisheries Compensatory Mitigation Fund charter, including
the governance structure, audit and public reporting procedures, and
standards for paying compensatory mitigation for impacts to fishers
from development on wind energy Lease Areas in the Gulf of Maine;
(3) All receipts documenting the amount, date, financial
institution, and the account and owner of the account to which the
Contribution was made; and
(4) Sworn statements by the entity that made the Contribution,
attesting to:
i. The amount and date(s) of the Contribution;
ii. That the Contribution is being (or will be) used in accordance
with the bidding credit requirements in the lease; and
iii. That all information provided is true and accurate.
The documentation must contain any information specified in the
Conceptual Strategy that was submitted with the BFF. If the lessee's
implementation of its Conceptual Strategy changes due to market needs
or other factors, the lessee must explain this change. BOEM reserves
the right to determine that the bidding credit has not been satisfied
if changes from the lessee's Conceptual Strategy result in the lessee
not meeting the criteria for the bidding credit described in Addendum
``C'' of the lease.
iii. Enforcement: The commitment to the Fisheries Compensatory
Mitigation Fund Bidding Credit will be made in the BFF. It will be
included in Addendum ``C'' of the lease and will bind the lessee and
all future assignees of the lease. If BOEM were to determine that a
lessee or assignee had failed to satisfy the commitment at the time the
first FDR is submitted, or by the fifth Lease Anniversary, whichever is
sooner, the amount corresponding to the bidding credit awarded would be
immediately due and payable to ONRR with interest from the lease
effective date. The interest rate would be the underpayment interest
rate identified by ONRR. The lessee would not be required to pay said
amount if the lessee satisfied its bidding credit requirements by the
time the first FDR is submitted, or the fifth Lease Anniversary,
whichever is sooner. BOEM may, at its sole discretion, extend the
documentation deadline beyond the first FDR or beyond the 5-year
timeframe.
XIII. Rejection or Non-Acceptance of Bids
BOEM reserves the right and authority to reject any and all bids
that do not satisfy the requirements and rules of the auction, the FSN,
or applicable regulations and statutes.
XIV. Anti-Competitive Review
Bidding behavior in this sale is subject to Federal antitrust laws.
Following the auction, but before the acceptance of bids and the
issuance of the lease, BOEM must ``allow the Attorney General, in
consultation with the Federal Trade Commission, thirty days to review
the results of [the] lease sale.'' 43 U.S.C. 1337(c)(1). If a
provisional winner is found to have engaged in anti-competitive
behavior in connection with this lease sale, BOEM may reject its
provisionally winning bid. Compliance with BOEM's auction procedures
and regulations is not an absolute defense against violations of
antitrust laws.
Anti-competitive behavior determinations are fact specific.
However, 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 against each other; or
3. Other agreements among bidders that have the potential to affect
the final auction price.
Pursuant to 43 U.S.C. 1337(c)(3), BOEM may decline to award a lease
if the Attorney General, in consultation with the Federal Trade
Commission, determines that awarding the lease may be inconsistent with
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">https://www.justice.gov/atr</a> and consult legal counsel.
XV. 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 the
provisional winner. Within 10-business days after receiving the lease
copies, the provisional winner must:
1. Execute and return the lease copies on the bidder's behalf;
[[Page 35235]]
2. File financial assurance as required under 30 CFR 585.515-537,
as applicable; and
3. Pay by electronic funds transfer (EFT) the balance owed (the
winning cash bid less the applicable bid deposit), if any. BOEM would
require bidders to use EFT procedures (not <a href="https://www.pay.gov">https://www.pay.gov</a>, the
website bidders used to submit bid deposits) for payment of the
balance, following the detailed instructions contained the
``Instructions for Making Electronic Payments'' available on BOEM's
website at <a href="https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/EFT-Payment-Instructions.pdf">https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/EFT-Payment-Instructions.pdf</a>.
BOEM will not execute the 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 owed if BOEM determines, in
its sole discretion, that the provisionally winning bidder's inability
to comply with the deadline was caused by events beyond the
provisionally winning bidder's control pursuant to 30 CFR 585.224(e).
If the provisional winner does not meet these requirements or
otherwise fails to comply with applicable regulations or the terms of
the FSN, BOEM reserves the right to not issue the lease to that bidder.
In such a case, the provisional winner will forfeit its bid deposit.
Also, in such a case, BOEM reserves the right to offer the lease to the
next highest eligible bidder as determined by BOEM.
Within 45 days after receiving the lease copies, the provisional
winner must pay the first year's rent using the ``ONRR Renewable Energy
Initial Rental Payments'' 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 available on ONRR's website
at: <a href="https://onrr.gov/paying/payment-options?tabs=rent-payments">https://onrr.gov/paying/payment-options?tabs=rent-payments</a>.
XVI. Non-Procurement Debarment and Suspension Regulations
Pursuant to 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
requirement as a term or condition in their contracts and other
transactions.
XVII. Final Sale Notice
The development of the FSN will be informed through the EA, related
consultations, and comments received during the PSN comment period. The
FSN will provide the final details concerning the offering and issuance
of an OCS commercial wind energy lease for the Lease Areas in the Gulf
of Maine. The FSN will be published in the Federal Register at least 30
days before the lease sale is conducted and will provide the date and
time of the auction.
XVIII. Changes to Auction Details
BOEM has the discretion to change any auction detail specified in
the FSN, including the date and time, if events outside BOEM's control
have been found to interfere with a fair and proper lease sale. Such
events may include, but are not limited to, natural disasters (e.g.,
earthquakes, hurricanes, floods, and blizzards), wars, riots, act of
terrorism, fire, strikes, civil disorder, Federal Government shutdowns,
cyberattacks against relevant information systems, or other events of a
similar nature. In case of such events, BOEM will notify all qualified
bidders via email, phone, and BOEM's website at <a href="https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine">https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine</a>. Bidders should call
BOEM's Auction Manager at (703) 787-1121 if they have concerns.
XIX. Appeals
Reconsideration of rejected bid procedures are provided for in
BOEM's regulations at 30 CFR 585.225 and 585.118(c). BOEM's decision on
a bid is the final action of the Department of the Interior, and is not
subject to appeals to the Office of Hearings and Appeals, but an
unsuccessful bidder may apply for reconsideration by the Director under
30 CFR 585.225 as follows:
1. If BOEM rejects a bid, BOEM will provide the bidder a written
statement of the reasons for rejection and will refund any money
deposited with the bid, without interest.
2. A bidder may ask the BOEM Director for reconsideration, in
writing, within 15-business days of bid rejection. The Director will
send the bidder a written response either affirming or reversing the
rejection.
XX. Public Participation
BOEM will make all comments on the PSN publicly available on
<a href="https://www.regulations.gov">https://www.regulations.gov</a> under the docket number and will consider
each comment prior to publication of the FSN. BOEM discourages
anonymous comments; please include your name, address, and telephone
number or email address as part of your comment. You should be aware
that your entire comment, including your name, address, and any other
personally identifiable information (PII) included in your comment, may
be made publicly available at any time.
For BOEM to consider withholding from disclosure your PII, you must
identify, in a cover letter, any information contained in the submittal
of 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.
Even if BOEM withholds your information in the context of this PSN,
your comment is subject to the Freedom of Information Act (FOIA). If
your submission is requested under the FOIA, your information will only
be withheld if a determination is made that one of the FOIA's
exemptions to disclosure applies. Such a determination will be made in
accordance with the Department of the Interior's FOIA regulations and
applicable law.
Note that BOEM will make available for public inspection, in their
entirety, all comments submitted by organizations and businesses, or by
individuals identifying themselves as representatives of organizations
or businesses.
XXI. Protection of Privileged and Confidential Information
BOEM will protect privileged and confidential information that you
submit consistent with FOIA and 30 CFR 585.114. Exemption 4 of FOIA
applies to ``trade secrets and commercial or financial information
obtained from a person'' 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 non-
confidential information.
[[Page 35236]]
a. Access to Information (54 U.S.C. 307103): BOEM may, after
consultation with the Secretary of the Interior, withhold the location,
character, or ownership of historic properties if the Secretary and
BOEM determine that disclosure may, among other things, cause a
significant invasion of privacy, risk harm to the historic resources,
or impede the use of a traditional religious site by practitioners.
Tribes and other interested parties should designate such information
that they wish to be withheld as confidential and provide the reasons
why BOEM should do so.
Authority: 43 U.S.C. 1337(p); 30 CFR 585.211 and 585.216.
Elizabeth Klein,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2024-09390 Filed 4-30-24; 8:45 am]
BILLING CODE 4340-98-P
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</html>Indexed from Federal Register on May 1, 2024.
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.