Notice2024-14462
Atlantic Wind Lease Sale 10 for Commercial Leasing for Wind Power Development on the U.S. Central Atlantic Outer Continental Shelf-Final 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
July 1, 2024
Issuing agencies
Interior DepartmentOcean Energy Management Bureau
Abstract
This Final Sale Notice (FSN) contains information pertaining to the areas available for commercial wind power leasing during Atlantic Wind Lease Sale 10 (ATLW-10) on the U.S. Central Atlantic Outer Continental Shelf (OCS). Specifically, this FSN details certain provisions and conditions of the leases, auction details, the lease form, criteria for evaluating competing bids, and procedures for award, appeal, and lease execution. The Bureau of Ocean Energy Management (BOEM) will offer two leases for sale using an ascending clock auction with multiple-factor bidding: Lease OCS-A 0557 and Lease OCS-A 0558 (Lease Areas). Bidders will be subject to a `one-per-customer' rule, as explained below. BOEM will use new auction software for the lease sale, resulting in minor changes to the auction rules. The Lease Areas are in the previously identified wind energy areas (WEAs) A-2 and C-1, offshore the States of Delaware and Maryland and the Commonwealth of Virginia. The issuance of any lease resulting from this sale will not constitute approval of project-specific plans to develop offshore wind energy. Such plans, if submitted by the Lessee, will be subject to environmental, technical, and public reviews prior to a BOEM decision on whether the proposed activity should be authorized.
Full Text
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<title>Federal Register, Volume 89 Issue 126 (Monday, July 1, 2024)</title>
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[Federal Register Volume 89, Number 126 (Monday, July 1, 2024)]
[Notices]
[Pages 54506-54519]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-14462]
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DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
[Docket No. BOEM-2022-0023]
Atlantic Wind Lease Sale 10 for Commercial Leasing for Wind Power
Development on the U.S. Central Atlantic Outer Continental Shelf--Final
Sale Notice
AGENCY: Bureau of Ocean Energy Management, Interior.
ACTION: Final sale notice.
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SUMMARY: This Final Sale Notice (FSN) contains information pertaining
to the areas available for commercial wind power leasing during
Atlantic Wind Lease Sale 10 (ATLW-10) on the U.S. Central Atlantic
Outer Continental Shelf (OCS). Specifically, this FSN details certain
provisions and conditions of the leases, auction details, the lease
form, criteria for evaluating competing bids, and procedures for award,
appeal, and lease execution. The Bureau of Ocean Energy Management
(BOEM) will offer two leases for sale using an ascending clock auction
with multiple-factor bidding: Lease OCS-A 0557 and Lease OCS-A 0558
(Lease Areas). Bidders will be subject to a `one-per-customer' rule, as
explained below. BOEM will use new auction software for the lease sale,
resulting in minor changes to the auction rules. The Lease Areas are in
the previously identified wind energy areas (WEAs) A-2 and C-1,
offshore the States of Delaware and Maryland and the Commonwealth of
Virginia. The issuance of any lease resulting from this sale will not
constitute approval of project-specific plans to develop offshore wind
energy. Such plans, if submitted by the Lessee, will be subject to
environmental, technical, and public reviews prior to a BOEM decision
on whether the proposed activity should be authorized.
DATES: BOEM will hold an online mock auction for potential bidders
starting at 9:00 a.m. Eastern Daylight Time (EDT) on August 12, 2024.
The monetary auction will be held online and will begin at 9:00 a.m.
EDT on August 14, 2024. Additional details are provided in the section
entitled, ``Deadlines and Milestones for Bidders.''
FOR FURTHER INFORMATION CONTACT: Bridgette Duplantis, Bureau of Ocean
[[Page 54507]]
Energy Management, Office of Leasing and Plans, 1201 Elmwood Park
Boulevard, New Orleans, Louisiana 70123, (504) 736-7502 or
<a href="/cdn-cgi/l/email-protection#debcacb7bab9bbaaaabbf0baabaeb2bfb0aab7ad9ebcb1bbb3f0b9b1a8"><span class="__cf_email__" data-cfemail="0260706b6665677676672c6677726e636c766b7142606d676f2c656d74">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background
a. Call for Information and Nominations (Call): On April 29, 2022,
BOEM published the Call for Information and Nominations-Commercial
Leasing for Wind Power Development on the Central Atlantic Outer
Continental Shelf (see 87 FR 25539). The Call consisted of six areas
labeled A-F. BOEM received 66 comments from the general public;
Federal, State, and local agencies; the fishing industry; industry
groups; developers; non-governmental organizations (NGOs);
universities; and other stakeholders. Comments can be viewed at <a href="https://www.regulations.gov/document/BOEM-2022-0023-0001/comment">https://www.regulations.gov/document/BOEM-2022-0023-0001/comment</a>. Three
developers nominated areas for a commercial wind energy lease within
the Call Area.
b. Area Identification (Area ID): After modifying the Area ID
process in a Notice to Stakeholders, which is available at <a href="https://www.boem.gov/newsroom/notes-stakeholders/boem-enhances-its-processes-identify-future-offshore-wind-energy-areas">https://www.boem.gov/newsroom/notes-stakeholders/boem-enhances-its-processes-identify-future-offshore-wind-energy-areas</a>, BOEM used this process to
support identification of draft WEAs in the Central Atlantic. After the
close of the Call comment period on June 28, 2022, BOEM initiated the
Area ID process by reviewing the input received on the Call. BOEM and
the National Oceanic and Atmospheric Administration's (NOAA's) National
Centers for Coastal Ocean Science (NCCOS) Team used an ocean planning
tool to identify the eight draft WEAs on the U.S. Central Atlantic OCS
using the methodology outlined in the BOEM and NCCOS Draft Report:
Development of the Central Atlantic Wind Energy Areas, which can be
found at <a href="https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/BOEM_NCCOS_JointReport_DraftWEAs.pdf">https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/BOEM_NCCOS_JointReport_DraftWEAs.pdf</a>.
On November 16, 2022, BOEM opened a 30-day public comment period on
eight draft WEAs on the OCS offshore the U.S. Central Atlantic coast,
covering approximately 1.7 million acres. BOEM considered the following
non-exclusive information sources when identifying the draft WEAs:
comments and nominations received on the Call; information from the
Central Atlantic Intergovernmental Renewable Energy Task Force; input
from Delaware, Maryland, Virginia, and North Carolina state agencies;
input from Federal agencies; input from federally recognized Tribes;
comments from stakeholders and ocean users, including the maritime
community, offshore wind developers, and the commercial and
recreational fishing industry; state and local renewable energy goals;
and information on domestic and global offshore wind market and
technological trends. BOEM's draft WEA recommendations did not reflect
a final assessment from the Department of Defense (DoD) regarding
compatibility of the draft WEAs with DoD needs.
After the close of the draft WEA comment period on December 16,
2022, BOEM finalized the Area ID process after reviewing the input
received from all stakeholders mentioned above and the DoD assessment.
BOEM announced the final WEAs on July 31, 2023, by designating three
WEAs within the Call Area. The first WEA (A-2) is 101,767 acres and
located approximately 26 nautical miles (nm) from the mouth of the
Delaware Bay. The second WEA (B-1) is 78,285 acres and located 23.5 nm
offshore Ocean City, Maryland. The third WEA (C-1) is 176,506 acres and
located approximately 35 nm from the mouth of the Chesapeake Bay. The
final WEAs comprise 356,558 acres and would support approximately 4.3-
8.1 GW of energy production if fully developed. BOEM, DoD (the
Departments of the Air Force and Navy), and the National Aeronautics
and Space Administration (NASA) agreed to undertake an in-depth review
of WEA B-1 to determine if the impacts to military and NASA operations
could be acceptable and/or mitigated. The Central Atlantic Area ID
process and documentation can be found at <a href="https://www.boem.gov/renewable-energy/state-activities/central-atlantic">https://www.boem.gov/renewable-energy/state-activities/central-atlantic</a>.
c. Environmental Reviews: On August 1, 2023, BOEM published a
notice of intent to prepare an environmental assessment (EA) to
consider potential environmental consequences 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 in the Call Area. When
scoping the EA, BOEM sought comments on the issues and alternatives
that should inform the EA. BOEM received 104 comment submissions, which
can be found at <a href="https://www.regulations.gov">https://www.regulations.gov</a> under Docket No. BOEM-2023-
0034. In addition to the preparation of the Draft EA, including
compliance with threatened and endangered species requirements for
certain data collection activities associated with OCS leasing (<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>), BOEM 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 informed BOEM's
decision on whether to proceed with this FSN. BOEM will conduct
additional environmental reviews upon receipt of a Lessee's
Construction and Operations Plan (COP) if the proposed leases reach
that stage of development.
II. List of Eligible Bidders
BOEM has determined that the following 17 entities are legally,
technically, and financially qualified to bid in the ATLW-10 auction,
pursuant to 30 CFR 585.107 and 585.108:
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Company
Company name No.
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Atlantic Shores Offshore Wind, LLC........................... 15092
Avangrid Renewables, LLC..................................... 15019
BP Central Atlantic Offshore Wind LLC........................ 15195
Corio USA Projectco LLC...................................... 15182
energyRE Offshore Wind Holdings, LLC......................... 15171
Equinor Wind US LLC.......................................... 15058
Invenergy Central Atlantic Offshore LLC...................... 15193
OW North America Ventures LLC................................ 15133
Reventus Power Central Atlantic, LLC......................... 15194
RWE Offshore US CATL, LLC.................................... 15190
Seaglass Offshore Wind II, LLC............................... 15155
Shell New Energies US LLC.................................... 15140
TotalEnergies Renewables USA, LLC............................ 15136
US Mainstream Renewable Power Inc............................ 15089
US Wind Inc.................................................. 15023
Vineyard Central Atlantic LLC................................ 15192
Virginia Electric and Power Company.......................... 15042
------------------------------------------------------------------------
a. Affiliated Entities: On the Bidder's Financial Form (BFF),
discussed in sections III(a)(i) and X 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 another bidding entity constitutes a presumption of non-control that
BOEM may rebut.
ii. They own or have common ownership of between 10 and 50 percent
of the voting securities or instruments of ownership, or other forms of
ownership, of another bidding entity, and BOEM
[[Page 54508]]
determines that there is control upon consideration of factors
including the following:
a. The extent to which there are common officers or directors.
b. 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.
c. 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. 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.
III. Deadlines and Milestones for Bidders
This section describes the major deadlines and milestones in the
auction process from publication of this FSN to execution of a lease
issued pursuant to this sale.
a. FSN Waiting Period: During the period between FSN publication
and the lease auction, qualified bidders must 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 each bidder's
Conceptual Strategy for each bidding credit for which that bidder
wishes to be considered. BOEM must receive each bidder's BFF on or
before July 12, 2024, and it is each bidder's responsibility to ensure
BOEM's timely receipt. If a bidder does not submit a BFF by this
deadline, BOEM, in its sole discretion, may grant an extension to that
bidder only if BOEM determines the bidder's failure to timely submit a
BFF was caused by events beyond the bidder's control. The BFF can be
downloaded at: <a href="https://www.boem.gov/renewable-energy/state-activities/central-atlantic">https://www.boem.gov/renewable-energy/state-activities/central-atlantic</a>. Once BOEM has processed a bidder's BFF, the bidder is
allowed to log into <a href="http://pay.gov">pay.gov</a> and submit a bid deposit. For purposes of
this auction, BOEM will not consider BFFs submitted for previous lease
sales. An original signed BFF may be mailed to BOEM's Office of
Renewable Energy Programs. A signed copy of the form may be submitted
in PDF format to <a href="/cdn-cgi/l/email-protection#2c5e4942495b4d4e40494942495e4b556c4e434941024b435a"><span class="__cf_email__" data-cfemail="592b3c373c2e383b353c3c373c2b3e20193b363c34773e362f">[email protected]</span></a>. A faxed copy will not be
accepted. BFF submissions should be accompanied with a transmittal
letter on company letterhead. The BFF must be executed on paper with a
wet signature or with a digital signature affixed by an authorized
representative listed on the bidder's current legal qualification card
on file with BOEM, subject to 18 U.S.C. 1001 (Fraud and False
Statements). Further information about the BFF can be found in the
``Bidder's Financial Form'' section X of this notice.
ii. Bid Deposit: Once BOEM has processed a BFF and provided the
appropriate information to the Office of Natural Resources Revenue
(ONRR), ONRR will populate the Bid Deposit Forms and notify the bidders
of access to <a href="http://pay.gov">pay.gov</a> for the bid deposits. The bidder must log into
<a href="https://www.pay.gov">https://www.pay.gov</a> to submit a bid deposit. To participate in the mock
auction and the monetary auction, each qualified bidder must provide a
bid deposit of $5,000,000 no later than July 29, 2024. BOEM will grant
extensions to this deadline only if BOEM, in its sole discretion,
determines that the failure to timely submit the bid deposit was caused
by events beyond the bidder's control. Further information about bid
deposits can be found in the ``Bid Deposit'' section XI of this notice.
In accordance with 30 CFR 585.222(e), BOEM will send a written notice
of its decision to accept or reject bids to all bidders whose deposits
we hold.
b. Conducting the Auction:
i. Affirmative Action: Prior to bidding in the monetary auction,
each bidder must file the Equal Opportunity Affirmative Action
Representation Form BOEM-2032 (February 2020, available on BOEM's
website at <a href="http://www.boem.gov/BOEM-2032/">http://www.boem.gov/BOEM-2032/</a>) and the Equal Opportunity
Compliance Report Certification Form BOEM-2033 (February 2020,
available on BOEM's website at <a href="http://www.boem.gov/BOEM-2033/">http://www.boem.gov/BOEM-2033/</a>) with the
BOEM Office of Renewable Energy Programs. The forms can be submitted
digitally to <a href="/cdn-cgi/l/email-protection#295b4c474c5e484b454c4c474c5b4e50694b464c44074e465f"><span class="__cf_email__" data-cfemail="0173646f647660636d64646f6473667841636e646c2f666e77">[email protected]</span></a> or mailed to the BOEM Office of
Renewable Energy Programs. This certification is required by 41 CFR
part 60 and Executive Order (E.O.) 11246, issued September 24, 1965, as
amended by E.O. 11375, issued October 13, 1967, and by E.O. 13672,
issued July 21, 2014. Both forms must be on file with BOEM for the
bidder(s) prior to the execution of any lease contract.
ii. Notification of Eligibility for Bidding Credits: BOEM will
notify each bidder of its eligibility for bidding credits prior to the
Mock Auction.
iii. Mock Auction: BOEM will hold a Mock Auction on August 12,
2024, beginning at 9:00 a.m. EDT, which 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.
iv. The Auction: On August 14, 2024, BOEM, through its contractor,
will commence the multiple-factor auction. The first round of the
auction will start at 9:00 a.m. EDT. The auction will proceed
electronically according to a schedule to be distributed by the BOEM
Auction Manager at the beginning of the auction, subject to any
revisions (which will be communicated to bidders during the auction).
BOEM anticipates that the auction will last one or two business days,
but the auction may continue for additional business days, as
necessary, until the auction ends in accordance with the procedures
described in the ``Auction Procedures'' section of this notice.
v. Announce Provisional Winners: BOEM will announce the provisional
winners of the lease sale after the auction ends.
c. From the Auction to Lease Execution:
i. Refund Non-Winners: Once the provisional winners have been
announced, BOEM will 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 30 days in
which to conduct an antitrust review of the auction, pursuant to 43
U.S.C. 1337(c).
iii. Delivery of the Lease: BOEM will send three lease copies to
each
[[Page 54509]]
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 calendar days after the
auction winners receive the lease copies for execution.
iv. Return the Lease: Within ten 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 cash bid
less applicable bid deposits), 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.
IV. Areas Offered for Leasing
The two Lease Areas included in this FSN are the same size and
orientation as described in the Proposed Sale Notice (PSN). BOEM's
designation of the two Lease Areas offered in the FSN is informed by
extensive coordination with BOEM's intergovernmental task force
members, consultation and engagement with Tribes, stakeholder
engagement, a partnership with NOAA's NCCOS to utilize spatial modeling
to inform the identification of WEAs, and consideration of the 42
comments that BOEM received in response to the PSN. The two areas BOEM
is offering for lease are: Lease Area A-2, OCS-A 0557, which consists
of 101,443 acres and is approximately 26.4 nm from the mouth of the
Delaware Bay; and Lease Area C-1, OCS-A 0558, which consists of 176,505
acres and is approximately 35 nm from the mouth of the Chesapeake Bay.
Descriptions of the proposed Lease Areas can be found in Addendum A
of the proposed leases, which can be found on BOEM's website at:
<a href="https://www.boem.gov/renewable-energy/state-activities/central-atlantic">https://www.boem.gov/renewable-energy/state-activities/central-atlantic</a>. The areas available for lease, as listed in Table 1, will be
auctioned in a single auction.
Table 1--ATLW-10 Final Lease Areas
------------------------------------------------------------------------
Lease area name Lease area ID Acres
------------------------------------------------------------------------
A-2.................................. OCS-A 0557 101,443
C-1.................................. OCS-A 0558 176,505
----------------------------------
Total............................ ................. 277,948
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a. Map of the Area for Leasing: A map of the lease areas, and GIS
spatial files X, Y (eastings, northings) UTM Zone 18, NAD83 Datum, and
geographic X, Y (longitude, latitude), NAD83 Datum can be found on
BOEM's website at: <a href="https://www.boem.gov/renewable-energy/state-activities/central-atlantic">https://www.boem.gov/renewable-energy/state-activities/central-atlantic</a>.
V. Lease Stipulations
BOEM is including several lease stipulations in Addendum C of each
lease related to reporting requirements, avoiding and minimizing
potential future user conflicts and environmental impacts, project
labor agreements, national security, and project design.
a. Reporting requirements: BOEM is including stipulations similar
to those found in previous leases requiring a semi-annual progress
report from lessees and regular engagement with Tribes and parties that
may be affected by lessees' activities on the OCS. The lease
stipulations require working with BOEM to identify: Tribes that have
cultural and/or historical ties to the Lease Areas, and potentially
affected parties; coastal communities; commercial and recreational
fishing industries and stakeholders; educational and research
institutions; environmental and public interest NGOs; federal, state,
and local agencies; mariners and the maritime industry; ocean users;
submarine cable operators; and underserved communities, as defined in
section 2 of E.O. 13985. The report must identify Tribes and parties
that may be affected by lessees' activities on the OCS and with whom
the lessees have engaged; provide updates on engagement activities;
document potential adverse effects to the interests of Tribes and
parties; document how, if at all, a project has been informed or
altered to address those potential effects; include feedback from
engagement regarding transmission planning prior to proposing any
export cable route; provide information that can be made available to
the public; and include strategies to reach potentially affected
individuals with Limited English Proficiency.
The stipulations include requirements for lessees to engage in ways
that minimize linguistic, technological, cultural, capacity, or other
obstacles. The stipulations encourage lessees to work collaboratively
with governments, community leadership and organizations, and Tribes
and to develop specific frameworks for capacity building.
In acknowledgment of the existing and growing consultation burden
placed on many of the Tribes and parties, the stipulation also
requires, to the maximum extent practicable, that lessees coordinate
with one another on engagement activities. It is BOEM's intention that
this requirement for lessees to coordinate their engagement apply not
only to meetings proposed by lessees, but also to reasonable requests
to coordinate engagement made by Tribes and parties. Coordinated
engagement among Tribes and lessees is strongly encouraged and is in
addition to BOEM's responsibilities to federally recognized Tribes
under E.O. 13175.
In addition, the reporting stipulation requires that the progress
report incorporate separate lease requirements for the development of
communication plans for Tribal governments (Native American Tribes
Communications Plan), agencies (Agency Communications Plan), and
fisheries (Fisheries Communications Plan). Lastly, the progress report
must include an update on activities executed under any survey plan.
b. Commercial Fisheries: BOEM is including a stipulation that
contains components of stipulations included in prior commercial leases
issued by BOEM, including a requirement for a Fisheries Communications
Plan.
c. Protected Species: Unless otherwise authorized by BOEM, Lessee's
OCS activities must comply with the standards in the Project Design
Criteria and Best Management Practices found in BOEM's notice (<a href="https://www.boem.gov/sites/default/files/documents//PDCs%20and%20BMPs%20for%20Atlantic%20Data%20Collection%2011222021.pdf">https://www.boem.gov/sites/default/files/documents//PDCs%20and%20BMPs%20for%20Atlantic%20Data%20Collection%2011222021.pdf</a>)
last revised on November 22, 2021. The
[[Page 54510]]
2021 Biological Assessment and letter of concurrence from which these
measures were derived may be found here: <a href="https://www.boem.gov/renewable-energy/state-activities/nmfs-esa-consultations">https://www.boem.gov/renewable-energy/state-activities/nmfs-esa-consultations</a>. At the
Lessee's option, the Lessee, its operators, personnel, and contractors
may satisfy this requirement by complying with the National Marine
Fisheries Service approved measures to safeguard protected species that
are most current at the time.
d. Marine Mammal Protection Act Authorization(s): If the Lessee is
required to obtain an authorization pursuant to section 101(a)(5) of
the Marine Mammal Protection Act prior to conducting survey activities
in support of plan submittal, the Lessee must provide to BOEM a copy of
the authorization prior to commencing these activities.
e. Project Labor Agreements (PLAs) and Supply Chain: BOEM is
committed to workforce safety and the establishment of a durable
domestic supply chain that can sustain the U.S. offshore wind energy
industry, including for the leases offered in this sale. To advance
these goals, BOEM is including two lease stipulations, one that
encourages construction efficiency for projects and one that
contributes towards establishing a domestic supply chain:
i. The first stipulation requires lessees to make every reasonable
effort to enter into a PLA covering the construction stage of any
project for the Lease Areas.
ii. The second stipulation requires lessees to establish a
Statement of Goals in which the Lessee describes its plans for
contributing to the creation of a robust and resilient U.S.-based
offshore wind industry supply chain that would facilitate this or other
renewable energy projects permitted by BOEM. The Lessee is required to
provide regular progress updates on the achievement of those goals to
BOEM, and BOEM will make those updates publicly available.
f. Research Site Access: This stipulation makes explicit that BOEM,
its designated representative, or any entity to which BOEM provides
access retains the right to access the Lease Area for purposes of
future research. This provision does not limit the Lessor's authority
to access the lease for other purposes, including, but not limited to,
inspections conducted pursuant to 30 CFR 285.822.
g. Archaeological Survey Requirements: This stipulation requires
that the Lessee provide to BOEM, in the associated plan submissions, a
description of the methods it will use to conduct archaeological
surveys in support of plans (i.e., Site Assessment Plan (SAP) and/or
COP), in addition to the survey results. The Lessee is required to
coordinate a Tribal pre-survey meeting with Tribes that have cultural
and/or historical ties to the Lease Area, and the Lessee must work with
BOEM to identify such Tribes. In the post-review discovery clauses, the
stipulation requires that, in the event of an unanticipated discovery
of a potential archaeological resource, the Lessee will immediately
halt bottom-disturbing activities occurring within 305 meters (1,000
feet) or less of the discovery and that the avoidance distance must be
calculated from the maximum discernible extent of the archaeological
resource.
h. Foreign Interest: To protect national defense capabilities and
military operations, BOEM is requiring the Lessee to provide to DoD
specific information about the personnel allowed to access the wind
turbine structures and associated data systems. That information
includes the names of entities or persons having a direct ownership
interest in an offshore wind facility, as well as any changes in
ownership interests; and the names of the material vendors, entities,
and persons with which the Lessee will potentially execute contracts to
perform construction, supply turbines or other components, or conduct
construction and operational activities at the facility. In addition,
the Lessee must resolve DoD's security concerns before it allows access
to the site by foreign persons or representatives of foreign entities
for which DoD has raised concerns and before the Lessee uses wind
turbines or other permanent on-site equipment manufactured by such an
entity.
i. Notice of Assignment to the Committee on Foreign Investment in
the United States (CFIUS): Under BOEM's regulations, a Lessee must be
one of the following: (1) a citizen or national of the United States;
(2) an alien lawfully admitted for permanent residence in the United
States, as defined in 8 U.S.C. 1101(a)(20); (3) a private, public, or
municipal corporation organized under the laws of any State of the
United States, the District of Columbia, or any territory or insular
possession subject to U.S. jurisdiction; (4) an association of such
citizens, nationals, resident aliens, or corporations; (5) an Executive
Agency of the United States, as defined in 5 U.S.C. 105; (6) a State of
the United States; or (7) a political subdivision of States of the
United States. BOEM is including a stipulation that requires any
proposed assignee of the lease that is a foreign-controlled business
entity under the regulations at 31 CFR part 800 to provide joint
notice, with the Lessee/assignor, to CFIUS of the proposed leasing
transaction, in accordance with applicable regulations at 31 CFR part
800, subpart D, and provide a copy of the notice to the DoD. In
addition, approval of any assignment of lease interest to a foreign-
controlled business entity under 31 CFR part 800 is subject to this
CFIUS notice stipulation. Such assignments would take place only after
CFIUS provides notice that it has concluded all necessary reviews under
section 721 of the Defense Production Act of 1950, as amended, with
respect to the leasing decision or assignment.
j. Transmission Planning: The Lessee must--to the extent that it is
technically and economically practical or feasible--consider the use of
shared cable corridors, regional transmission systems, meshed systems,
or other mechanisms for transmission facilities proposed in a COP. Such
consideration must be done in accordance with stipulation 3.1.1, which
requires the Lessee to engage with Tribes and parties regarding
transmission planning prior to proposing any export cable route. The
foregoing does not prevent the Lessee from proposing the use of
transmission systems traditionally constructed in a Project easement in
any COP that the Lessee submits; nor does it prevent BOEM from
requiring in a COP approval the use of cable corridors, regional
transmission systems, meshed systems, or other mechanisms for
transmission facilities, if deemed technically and economically
practical or feasible by BOEM.
k. NASA Operations (Lease OCS-A 0558): NASA and the Missile Defense
Agency identified potential impacts to operations originating from the
Wallops Island Flight Facility. BOEM has included stipulations in Lease
OCS-A 0558 to avoid and minimize this potential conflict with wind
energy development. In response to public comment, BOEM worked with
NASA to provide additional clarification on the type and frequency of
NASA activities expected to impact the lease area, the affected
portions of the lease area, and the circumstances necessitating
suspension of operations and/or evacuation. The additional information
is found on BOEM's website at: <a href="https://www.boem.gov/renewable-energy/state-activities/central-atlantic">https://www.boem.gov/renewable-energy/state-activities/central-atlantic</a>.
l. Siting Conditions (Lease OCS-A 0558): BOEM has included lease
stipulations addressing surface structure layout and orientation based
on input from the U.S. Coast Guard to avoid and minimize potential
vessel navigation issues as a result of Lease OCS-A 0558 being adjacent
to existing lease OCS-A 0483. An additional stipulation has
[[Page 54511]]
been added to avoid and minimize impacts to the existing Dunant cable
within Lease Area OCS-A 0558.
VI. Potential Future Restrictions
a. Potential Future Restrictions to Mitigate Potential Conflicts
with Department of Defense 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 and the
Military Aviation and Installation Assurance Siting Clearinghouse
(Clearinghouse) conducted a DoD assessment of the Call Area. The
assessment identified the following potential issues that may require
mitigation. Lessees will be expected to coordinate with the
Clearinghouse to assess and mitigate the impact on DoD activities as
they design their proposed facilities.
i. Air Surveillance and Radar: The North American Aerospace Defense
Command (NORAD) mission may be affected by the development of the Lease
Area(s). 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) \1\
and overlapping radar coverage. For projects where RAM mitigation is
acceptable, BOEM anticipates including the following project approval
conditions:
---------------------------------------------------------------------------
\1\ RAM is the technical process designed to minimize the
adverse impact of obstruction interference on a radar system.
---------------------------------------------------------------------------
(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. Advanced Dynamic Aircraft Measurement System (ADAMS)
operations: The operation of wind turbines within Lease Area OCS-A 0558
(C-1) may interfere with the operations of the Advanced Dynamic
Aircraft Measurement System (ADAMS), located at Naval Air Station
Patuxent River, Maryland.
Should interference and negative impacts on ADAMS be identified as
a result of a Lessee's operations on Lease OCS-A 0558, BOEM may require
the Lessee as a future condition of approval to work with the
Department of Defense (DoD) to mitigate impacts to ADAMS. The extent of
impact, if any, is not currently known and DoD is undertaking modeling
and data collection to assess impacts using the turbines constructed on
the existing, neighboring Lease OCS-A 0483.
Expected mitigation for interference with ADAMS caused by wind
turbine operation is currently limited to curtailment of turbine
operations during test events. Depending on the degree of impact and
availability of additional mitigations, BOEM may require the Lessee to
curtail operation of the wind facility to support ADAMS operation, if
DoD determines curtailment is required.
DoD projects curtailment requirements to be up to 1750 scheduled
hours per year. This estimate is based on assumptions that can be
refined as more information becomes available. Assumptions include:
<bullet> DoD projections for research, development, test, and
evaluation demands on ADAMS;
<bullet> interference from a wind facility would occur every time a
test is scheduled (as opposed to only during periods when atmospheric
ducting coincides with ADAMS operations and interference is possible);
<bullet> the Lessee has limited flexibility to continue or resume
power generation once the curtailment is scheduled with the power grid
operator in the event ADAMS operations are canceled or suspended;
<bullet> Power grid scheduling assumptions include: (1) curtailment
must be scheduled at least 72 hours prior to the ADAMS event; (2)
curtailment cannot be canceled within the 24-hour window prior to the
scheduled event; and (3) curtailment hours cannot be adjusted within
the 72-hour window prior to the scheduled event.
The actual number of ADAMS operating hours executed will be less
than scheduled but may not be known until less than 24 hours in advance
of the ADAMS event. If the future Lessee is not constrained by the grid
operator (as in the power grid assumptions above), the number of hours
of curtailment could be substantially less.
Actual curtailment requirements will be subject to validation by
DoD of the project's effects on ADAMS and may increase or decrease
based upon national defense mission requirements. Alternative
mitigation measures may also be developed prior to construction and
operation of the project.
iii. U.S. Air Force and U.S. Air Force Air National Guard
operations: The U.S. Air Force noted that the airspace above both
proposed Lease Areas has a floor of 1,000 feet above sea level. The
U.S. Air Force requested BOEM limit structure heights to no higher than
1,000 feet above sea level.
BOEM will further coordinate with DoD and the Lessee to deconflict
potential impacts throughout the project design and COP review stage,
which may result in adding mitigation measures or terms and conditions
as part of any COP approval. BOEM may require the Lessee to enter into
an agreement with DoD to implement any conditions and mitigate any
identified impacts.
b. Potential Future Restrictions within Significant Sediment
Resource Areas: Potential bidders are advised that BOEM has developed
sand resource areas in aliquots offshore the Mid Atlantic (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. If it is determined that significant OCS sand resources may be
impacted by a proposed activity, BOEM may require the Lessee 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. There is also potential for sand
resources to exist in aliquots not currently identified. BOEM and/or
the Bureau of Safety and Environmental Enforcement (BSEE) will not
approve future requests for in-place decommissioning of cables in sand
resource areas unless BOEM's Marine Minerals Program has determined
that the cable corridor does not unduly interfere with other uses of
the OCS, specifically sand resource use.
c. Potential Future Restriction to Mitigate Potential Conflicts
with Environmental Resources: All potential bidders should be aware
that site specific surveys may reveal features requiring mitigation at
the COP stage. This includes sensitive benthic resources and cultural
resources.
d. Potential Future Restriction to Mitigate Potential Conflicts
with Lease Area OCS-A 0557 and USCG Proposed Traffic Separation Schemes
(TSS) Precautionary Areas: Those interested in bidding should be aware
that Lease Area OCS-A 0557 is spaced less than 1nm from the northern
portion of the proposed Off Delaware Bay Southern
[[Page 54512]]
Approach Precautionary Area, which includes the Delaware Bay Eastern
Approach TSS extension lane. These areas are identified in the Final
Consolidated Port Approaches Port Access Route Studies and have been
included in the United States Coast Guard's Notice of Proposed
Rulemaking (NPRM) for Shipping Safety Fairways Along the Atlantic
Coast, published on January 19, 2024. The USCG NPRM begins the formal
process for codifying the TSS and Precautionary Areas for vessel use
with the intended purpose of facilitating navigational safety. Per the
United States Coast Guard's Marine Planning Guidelines outlined in the
October 5, 2023, USCG Navigation and Vessel Inspection Circular NO. 02-
23 Enclosure 4, the preferred recommended setback distance for any
offshore structure to parallel any International Maritime Organization
routing measure is 2 nm. There is less than 2 nm spacing between the
northern boundary of Lease Area OCS-A 0557 and the proposed Delaware
Bay Eastern Approach TSS extension lane. Table 2 lists the sub-blocks
that are within the 2 nm of the proposed Delaware Bay Eastern Approach
TSS extension lane and which may be subject to mitigation measures
(i.e., no surface occupancy).
Table 2--OCS-A 0557: Blocks of Concern
----------------------------------------------------------------------------------------------------------------
Protraction
Protraction name No. Block No. Sub-block
----------------------------------------------------------------------------------------------------------------
Salisbury..................................... NJ18-05 6330 D, H.
Salisbury..................................... NJ18-05 6331 A, B, C, D, E, F, G, H.
Salisbury..................................... NJ18-05 6332 A, B, C, D, E, F, G, H.
Salisbury..................................... NJ18-05 6333 E.
----------------------------------------------------------------------------------------------------------------
Maps identifying these OCS blocks and sub-blocks are available on
BOEM's website at: <a href="https://www.boem.gov/renewable-energy/state-activities/central-atlantic">https://www.boem.gov/renewable-energy/state-activities/central-atlantic</a>.
VII. Lease Terms and Conditions
BOEM has made available the terms, conditions, and stipulations for
the commercial leases that will be offered through this sale.\2\ BOEM
reserves the right to require compliance with additional terms and
conditions associated with the approval of a SAP and a COP. The lease
forms \3\ are on BOEM's website at: <a href="https://www.boem.gov/renewable-energy/state-activities/central-atlantic">https://www.boem.gov/renewable-energy/state-activities/central-atlantic</a>. Each lease will include the
following attachments:
---------------------------------------------------------------------------
\2\ On May 15, 2024, BOEM published in the Federal Register the
Renewable Energy Modernization Rule (Rule), which once effective on
July 15, 2024, will require updates to the lease published with this
FSN. Those updates are likely to reflect changes to the timing of
lease terms and the formula for calculating operating fees. After
July 15, 2024, BOEM will revise the lease to conform to the Rule and
will inform qualified bidders of the changes. BOEM expects no other
updates or changes to the lease published with this FSN.
\3\ Note to potential bidders: The title and content of Section
21, Waiver, of Lease OCS-A 0558 has been removed and replaced with
Variance, which is an updated provision that was included in Lease
OCS-A 0557, but inadvertently omitted from Lease OCS-A 0558, in the
PSN published in the Federal Register on December 12, 2023.
---------------------------------------------------------------------------
1. Addendum A (``Description of Leased Area and Lease
Activities'');
2. Addendum B (``Lease Term and Financial Schedule'');
3. Addendum C (``Lease-Specific Terms, Conditions, and
Stipulations'');
4. Addendum D (``Project Easement'').
Addenda A, B, and C provide detailed lease terms and conditions.
Addendum D will be completed at the time of COP approval or approval
with modifications, should a COP be approved.
a. Required Plans for Potential Development of Executed Leases: To
the extent required under BOEM's regulations at 30 CFR part 585, the
Lessee may submit a SAP, if the Lessee intends to conduct site
assessment activities under that SAP, and must submit a COP to avoid
lease termination under 30 CFR 585.432(a).
VIII. Lease Financial Terms and Conditions
This section provides an overview of the required annual payments
and financial assurances under the lease. Potential bidders should
review the 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-calendar days after
the Lessee receives the unexecuted lease copies from BOEM. 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).
For example, for the 101,443 acres of OCS-A 0557 (A-2), the rent
payment would be $304,329 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-calendar days after
receiving the lease copies from BOEM and BOEM approves that
application, no rent payment will be due on the relinquished portion of
the Lease Area. Later relinquishments of any portion of the Lease Area
will reduce the Lessee's rent payments starting in the year following
BOEM's approval of the relinquishment.
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 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.
Annual rent for a project easement is the greater of $5 per acre per
year, or $450 per year. If a COP revision results in increased easement
acreage, BOEM will require the appropriate amount of additional rent
when it approves the COP.
b. Operating Fee: For purposes of calculating the initial annual
operating fee payment 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 payment will be due
within 90-calendar days of the commencement of commercial operations.
Thereafter,
[[Page 54513]]
subsequent annual operating fee payments will be due on or before the
Lease Anniversary.
The subsequent annual operating fee payments 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 will be calculated as follows:
[GRAPHIC] [TIFF OMITTED] TR01JY24.016
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 ONRR as an annual operating fee. For the Lease Areas,
BOEM will 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: The capacity factor relates to the amount of
energy delivered to the grid during a period of time compared to the
amount of energy the wind facility would have produced at full capacity
during that same period of time. BOEM will 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 full 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 the following table provides the price data. A
similar price dataset may also be used and may be posted by BOEM at
<a href="https://www.boem.gov">https://www.boem.gov</a> for reference.
------------------------------------------------------------------------
Lease area name Wholesale power price
------------------------------------------------------------------------
A-2, OCS-A 0557........................... PJM DPL.
C-1, OCS-A 0558........................... PJM DOM.
------------------------------------------------------------------------
c. Financial Assurance: Within 10 business days after receiving the
unexecuted lease copies for execution and pursuant to 30 CFR 585.515-
585.516, the provisional winners must 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 as detailed in 30 CFR 585.526-585.529. BOEM
encourages the provisional winners to discuss the financial assurance
instrument requirements with BOEM as soon as possible after the auction
has concluded.
BOEM will base the amount of all SAP, COP, and decommissioning
financial assurance on cost estimates for meeting all accrued lease
obligations at the respective stages of development. 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/central-atlantic">https://www.boem.gov/renewable-energy/state-activities/central-atlantic</a>.
IX. Bidder's Financial Form
Each bidder must submit to BOEM the information required in the BFF
referenced in this FSN. A copy of the form is available at: <a href="https://www.boem.gov/renewable-energy/state-activities/central-atlantic">https://www.boem.gov/renewable-energy/state-activities/central-atlantic</a>. BOEM
recommends that each bidder designate an email address in its BFF that
the bidder must use to create an account in <a href="http://pay.gov">pay.gov</a> (if it has not
already done so). BOEM must receive BFFs, including Conceptual
Strategies, no later than July 12, 2024. If a bidder does not submit a
BFF for this sale by the deadline, BOEM, in its sole discretion, may
grant an extension to that bidder only if BOEM determines the bidder's
failure to timely submit a BFF was caused by events beyond the bidder's
control. The BFF is required to be executed by an authorized
representative listed in the bidder's qualification package on file
with BOEM. BFFs submitted by bidders for previous lease sales will not
satisfy the requirements of this auction.
For the ATLW-10, BOEM will accept bidders' BFFs and Conceptual
Strategies electronically or by mail. Instructions for submission can
be found in the BFF. The BFF must be executed on paper with a wet
signature or with the application of a digital signature by an
authorized representative listed on the legal qualification card
currently on file with BOEM as authorized to bind the company. Winning
bidders who have committed to bidding credit(s) must meet the bidding
credit requirements no later than submission of their first Facility
Design Report (FDR) or the applicable Lease Anniversary, whichever is
sooner.
X. Bid Deposit
A bid deposit is an advance cash payment submitted to BOEM to
participate in the auction. ONRR will notify the bidders that they have
access to the Bid Deposit Form in <a href="http://pay.gov">pay.gov</a>, and bidders must use the Bid
Deposit Form on the <a href="https://www.pay.gov">https://www.pay.gov</a> website to submit a deposit.
Bidders may need to create an account in <a href="http://pay.gov">pay.gov</a> to access the Bid
Deposit Form and submit a deposit. Each bidder must submit a bid
deposit of $5,000,000 no later than July 29, 2024, to be eligible to
bid for one lease area. Any bidder who fails to submit the bid deposit
by this deadline may be disqualified from participating in the auction.
BOEM will consider extensions to this deadline only if BOEM, in its
sole discretion, determines that the failure to timely submit the bid
deposit was caused by events beyond the bidder's control.
Following the auction, provisional winners' bid deposits will be
applied
[[Page 54514]]
against their winning cash bids. Once BOEM has announced the
provisional winners, BOEM will refund bid deposits to the other
bidders.
If BOEM offers a lease to a provisionally winning bidder and that
bidder fails to timely return the signed lease form, establish
financial assurance, or pay the balance of its bid, BOEM may retain the
bidder's $5,000,000 bid deposit. In such a circumstance, BOEM may
determine which bid would have won in the absence of the bid previously
determined to be the winning bid and may offer a lease to this next
highest bidder if this next highest bidder is not a provisionally
winning bidder of the other lease area in the auction. This process
will be repeated if needed.
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 has established a minimum bid of $100.00
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 will use a multiple-factor
auction format for this lease sale. The bidding system for this lease
sale will be a multiple-factor 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. Bidders will
be subject to a `one-per-customer' rule, meaning that each bidder can
acquire at most one lease area. BOEM will start the auction using the
minimum bid price for each lease area and will increase prices
incrementally until no more than one bidder remains bidding on each
lease area in the auction.
In response to public comments, BOEM is revising the bidding credit
percentages from those proposed in the PSN. The total bidding credits
remain at 25 percent. BOEM is increasing the credit for contributing to
a fisheries compensatory mitigation fund from 8 percent to 12.5
percent, and is reducing the credit for supporting offshore wind
workforce training programs or supply chain development from 17 percent
to 12.5 percent. These changes reflect the potential conflicts of
offshore wind with commercial fisheries and the many existing efforts
of state and other federal initiatives for offshore wind workforce
training and supply chain development.
For this sale, BOEM is calculating bidding credits as a percentage
of the whole bid, which is a change from the method used in prior
sales, 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 will grant bidding credits to bidders that commit to one or
both of the following, subject to review of the bidder's BFF and
Conceptual Strategy.
i. Supporting workforce training programs for the offshore wind
industry or supporting the development of a domestic supply chain for
the 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 OCS offshore wind development in the Atlantic.
These bidding credits are intended to:
i. Enhance, through training, the offshore wind workforce and/or
enhance the establishment of a domestic supply chain for offshore wind
manufacturing, assembly, or services, both of which will contribute to
the expeditious and orderly development of offshore wind resources on
the OCS; and
ii. Minimize potential economic effects on commercial fisheries
impacted by potential offshore wind development, as cooperation with
commercial fisheries impacted by OCS operations will enable development
of the lease areas to advance.
Changes to Auction Rules: BOEM will be employing new auction
software for lease sales held in 2024. The auction format remains an
ascending clock auction with multiple-factor bidding. There are five
main changes to the ascending clock auction rules in the new software,
as follows:
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 bidder's 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 auction 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 of 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.
Changes i. through iv. listed above are applicable to the ATLW-10
sale. However, change v. to the ascending clock auction rules is
inapplicable, due to the `one-per-customer' rule.
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>.
The Auction: Using an online bidding system to host the auction,
BOEM will start the bidding for Leases OCS-A 0557 and OCS-A 0558 as
described below.
----------------------------------------------------------------------------------------------------------------
Lease area name Lease area ID Acres Minimum bid
----------------------------------------------------------------------------------------------------------------
A-2....................................................... OCS-A 0557 101,443 $10,144,300
C-1....................................................... OCS-A 0558 176,505 17,650,500
----------------------------------------------------------------------------------------------------------------
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 price, for one lease area. After Round 1, the bidder's
``processed demand'' is one for the lease area (if any) for which the
[[Page 54515]]
bidder bid in Round 1.\4\ The bidder's eligibility for Round 2 equals
the number of lease area for which the bidder bid in Round 1.
---------------------------------------------------------------------------
\4\ 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 continue
bidding at the new round's clock price for the same lease area for
which the bidder's processed demand is one or submit a bid at any price
in the range for that round to reduce demand for that lease area. 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 a lease area can
optionally bid to increase demand for the other lease area in the same
round.
If an eligible bidder does not place a bid during the round for the
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. That 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 equals the number of lease areas for which the bidder had a
processed demand of one. If, after any round, a bidder's processed
demand is zero for both lease area s, the bidder's eligibility drops to
zero and the bidder can no longer bid 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).\5\ If, after the bids
for the round have been processed, there is no lease area with excess
demand, the auction will end. When this occurs, each bidder with a
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.
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\5\ The Auction Procedures for Offshore Wind Lease Sales
provides details on how bids are prioritized and processed.
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The increment by which the clock price exceeds the start-of-round
price will be determined based on several factors including, but not
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 (if any) of its winning bid (i.e., winning bid minus the
applicable bid deposit and any applicable bidding 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 this 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 Identify Online (FIDO) compliant security key,\6\
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.
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\6\ FIDO keys are produced by many manufacturers, such as Yubico
and Google. They are widely available and can easily be purchased
from Amazon, Best Buy, Walmart, or any other seller of electronics.
The latest generation of the FIDO standard is FIDO2, and each
authorized individual should obtain a key compliant with the FIDO2
authentication standard. FIDO keys are typically inserted into a
computer's USB port, so the authorized individual should obtain a
FIDO key compatible with their computer (USB-A or USB-C) or a USB
adapter, as necessary.
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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 process 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 auction will begin at 9:00 a.m. EDT on
August 14, 2024. Bidders will be able to log into the auction system
beginning 30 minutes before the start of the auction. BOEM recommends
that bidders log in earlier than 9:00 a.m. EDT on that day to ensure
that any login issues are resolved prior to the start of the auction.
iii. Messaging Service: BOEM and its 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 bidding round. At 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 this FSN
and the Auction Procedures
[[Page 54516]]
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 procedures described in this FSN. In the event of any
inconsistency between the Auction Procedures for Offshore Wind Lease
Sales, the Bidder Manual, and the FSN, the FSN is controlling.\7\
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\7\ The Bidder Manual describes use of the auction platform and
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 individual is able to access the auction system. A
mobile hotspot or other form of wireless access is helpful if 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, including requiring the caller to provide a code
from the software token. The caller must also explain the reasons why a
telephone bid needs to be submitted. 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 application (app) 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\TM\ mobile app \8\ onto their smartphone or
tablet.\9\ The first time the individual logs into the auction system,
the system will provide a QR token to be read into the Google
Authenticator app. This token is unique to the individual and enables
the Google Authenticator app 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 app 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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\8\ Google Authenticator must be installed from either the Apple
App Store or the Google Play Store.
\9\ Installing the Google Authenticator app is only required if
the app has not already been installed on the smartphone or tablet.
---------------------------------------------------------------------------
b. 12.5 Percent Bidding Credit for Workforce Training or Supply
Chain Development or a Combination of Both: This bidding credit allows
a bidder to receive a credit of 12.5 percent of its bid 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. offshore wind industry or development of a U.S. domestic
supply chain for the 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. The Contribution to workforce training must result in a better
trained and/or larger domestic offshore wind workforce that provides
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.
ii. The Contribution to domestic supply chain development must
result in overall benefits to the U.S. offshore wind supply chain
available to all potential purchasers of 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 offshore wind domestic supply chain by reducing the
upfront capital or certification cost for manufacturing 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 would allow
BOEM to confirm compliance when the documentation for satisfying the
bidding credit is submitted. 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 FDR.
v. 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 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 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 offshore wind workforce development programs or training for
employees of an Indian Economic Enterprise \10\ in skills necessary in
the 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 offshore
wind energy projects in the United States.
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\10\ <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. Contributions to domestic supply chain development must promote
and support one or more of the following: (i) Development of a domestic
supply chain for the offshore wind industry, including manufacturing of
components and subassemblies and the expansion of related services;
(ii) Domestic Tier 2 and Tier 3 offshore wind component suppliers and
domestic Tier-1 supply chain efforts, including quay-side fabrication;
\11\ (iii) Technical assistance
[[Page 54517]]
grants to help U.S. manufacturers re-tool or certify (e.g., ISO-9001)
for 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 offshore wind component manufacturing or assembly
of major 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 offshore wind
components or subassemblies or the provision of offshore wind services
in the United States.
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\11\ Tier-1 denotes the primary 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 is required to 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 will need to describe how the funded initiative or
program has advanced, or is expected to advance, U.S. 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 will need to 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 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.
viii. Enforcement: The commitment for the bidding credit will be
made in the BFF and will be included in a lease addendum that 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
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
will be immediately due and payable to ONRR with interest from the
lease Effective Date. The interest rate will be the underpayment
interest rate identified by ONRR. The Lessee will 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.
c. 12.5 Percent Bidding Credit for Fisheries Compensatory
Mitigation Fund: The second bidding credit will 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 Atlantic. The term
``for-hire recreational fisheries'' refers to charter and headboat
fishing operations involving vessels-for-hire engaged in recreational
fishing in the Atlantic 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.
The Fund must compensate commercial and for-hire recreational
fishers for gear loss or damage, as well as income loss claims incurred
as a result of any stage of offshore wind project development (pre-
construction, construction, operations, and decommissioning) resulting
from this lease. Loss claims may also result from impacts from the
development of easements associated with this lease and/or the conduct
of surveys on this lease before the establishment of the Fund. Funds
determined to be in excess of those needed to compensate for gear loss
or damage and income loss as a result of lease development, based on
actuarial accounting, may be used to:
<bullet> Support regional fisheries compensatory mitigation efforts
for other Atlantic OCS offshore wind projects,
<bullet> Offset the cost of gear and navigational aid upgrades and
other transitions for operating within a wind farm; or
<bullet> Promote participation of fishers and fishing communities
in the offshore wind project development process or other programs that
better enable the fishing and offshore wind industries to co-exist.
Lessees are encouraged to coordinate with other lessees to
establish or contribute to a regional fund. The regional fund should
ensure lease-specific claims are accounted for.
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.
The Conceptual Strategy must describe the actions that the lessee
intends to take that will allow BOEM to verify compliance when the
lessee seeks to demonstrate satisfaction of the requirements for the
bidding credit. The lessee is 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.
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 report information
on fund disbursement and administrative costs at least annually.
[[Page 54518]]
The fisheries compensatory mitigation fund must be independently
managed by a third party and must include trustees or board members
from fishing stakeholder groups. The fund must be 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 BOEM's draft Fisheries
Mitigation Guidance, the Eleven Atlantic States' Fisheries Mitigation
Project, or other sources.
Documentation: 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. At a minimum, this documentation must
include:
a. The procedures established to compensate for gear loss or damage
and lost fishing income resulting from any stage of offshore wind
development (pre-construction, construction, operation, and
decommissioning) adherent to the requirements above;
b. 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 all phases of offshore development adherent to the requirements
above;
c. All receipts documenting the amount, date, financial
institution, and the account and owner of the account to which the
Contribution was made; and
d. 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.
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 will be
immediately due and payable to ONRR with interest from the lease
Effective Date. The interest rate will be the underpayment interest
rate identified by ONRR. The lessee will 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 to reject any and all bids that do not
satisfy the requirements and rules of the auction, this FSN, or
applicable regulations and statutes.
XIV. Anti-Competitive Review
Bidding behavior in this lease sale is subject to federal antitrust
laws. Following the auction, but before the acceptance of bids and the
issuance of the lease, BOEM will ``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
provisionally winning bidder is found to have engaged in anti-
competitive behavior in connection with this lease sale, BOEM will
reject its provisionally winning bid. Compliance with BOEM's auction
procedures and regulations is not an absolute defense to violations of
antitrust laws.
Anti-competitive behavior determinations are fact-specific. Such
behavior may manifest itself in several different ways, including, but
not limited to:
1. An express or tacit agreement among bidders not to bid in an
auction, or to bid a particular price;
2. An agreement among bidders not to bid;
3. An agreement among bidders not to bid against each other; or
4. Other agreements among bidders that have the potential to affect
the final auction price.
Pursuant to 43 U.S.C. 1337(c)(3), BOEM will decline to award a
lease if the Attorney General, in consultation with the Federal Trade
Commission, determines that awarding the lease would be inconsistent
with antitrust laws.
For more information on whether specific communications or
agreements could constitute a violation of federal antitrust law,
please see <a href="https://www.justice.gov/atr/business-resources">https://www.justice.gov/atr/business-resources</a> or consult
legal counsel.
a. Process for Issuing the Lease
Once all post-auction reviews have been completed to BOEM's
satisfaction, BOEM will provide three unsigned copies of the lease to
each provisionally winning bidder. Within 10 business days after
receiving the lease copies, the provisionally winning bidders must:
1. Sign and return the lease copies on the bidder's behalf;
2. File financial assurance, as required under 30 CFR 585.515-537;
and
3. Pay by electronic funds transfer (EFT) the balance owed (the
winning cash bid less the applicable bid deposit), if any. BOEM
requires bidders to use EFT procedures (not <a href="http://pay.gov">pay.gov</a>, the website
bidders used to submit bid deposits) for payment of the balance,
following the detailed instructions available on ONRR's website at:
<a href="https://onrr.gov/paying/payment-options?tabs=renewable-energy,bid-deposit-options">https://onrr.gov/paying/payment-options?tabs=renewable-energy,bid-deposit-options</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 provisionally winning bidder does not meet these
requirements or otherwise fails to comply with applicable regulations
or the terms of the FSN, BOEM reserves the right not to issue the lease
to that bidder. In such a case, the provisional winner will forfeit its
bid deposit. Also, in such a case,
[[Page 54519]]
BOEM reserves the right to offer the lease to the next highest eligible
bidder as determined by BOEM.
Within 45 calendar days of the date that a provisional winner
receives lease copies, each provisional winner is required to 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>.
b. Non-Procurement Debarment and Suspension Regulations
Pursuant to 43 CFR part 42, subpart C, an OCS renewable energy
Lessee will be required to 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 condition in their contracts and in other
transactions.
c. Changes to Auction Details
The Program Manager of BOEM's Office of Renewable Energy Programs
has the discretion to change any auction detail specified in the FSN,
including the date and time, if s/he deems that events outside BOEM's
control may 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, acts 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/central-atlantic">https://www.boem.gov/renewable-energy/state-activities/central-atlantic</a>. Bidders should call
BOEM's Auction Manager at (703) 787-1121 if they have concerns.
d. Withdrawal of Blocks
BOEM reserves the right to withdraw all or portions of each lease
area prior to executing the leases with the winning bidders. If BOEM
exercises this right, it will refund bid deposits to winning bidders,
without interest, as provided in 30 CFR 585.224(f).
e. Appeals
Procedures to request reconsideration of rejected bids are provided
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 appeal 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:
(a) If BOEM rejects your bid, BOEM will provide a written statement
of the reasons and will refund any money deposited with your bid,
without interest.
(b) You may ask the BOEM Director for reconsideration, in writing,
within 15 business days of bid rejection, under 30 CFR 585.118(c)(1).
The Director will send you a written response either affirming or
reversing the rejection.
f. Protection of Privileged or Confidential Information
BOEM will protect privileged or confidential information that the
Lessee submits, as authorized by the Freedom of Information Act (FOIA),
30 CFR 585.114, or other applicable statutes. If the Lessee wishes to
protect the confidentiality of information, the Lessee should 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. 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's FOIA regulations and applicable law. Labeling
information as privileged or confidential will alert BOEM to more
closely scrutinize whether it warrants withholding. Further, BOEM will
not treat as confidential aggregate summaries of otherwise
nonconfidential information.
XV. Compliance With the Inflation Reduction Act (Pub. L. 117-169 (Aug.
16, 2022)) (Hereinafter, the ``IRA'')
Section 50265(b)(2) of the IRA provides that ``[d]uring the 10-year
period beginning on the date of enactment of this Act . . . the
Secretary may not issue a lease for offshore wind development under
section 8(p)(1)(C) of the OCS Lands Act (43 U.S.C. 1337(p)(1)(C))
unless--(A) an offshore [oil and gas] lease sale has been held during
the 1-year period ending on the date of the issuance of the lease for
offshore wind development; and (B) the sum total of acres offered for
lease in offshore [oil and gas] lease sales during the 1-year period
ending on the date of the issuance of the lease for offshore wind
development is not less than 60,000,000 acres.'' Section 50264(d) of
the IRA provides that ``. . . not later than March 31, 2023, the
Secretary shall conduct Lease Sale 259[.]'' Oil and Gas Lease Sale 261
was held on December 20, 2023, satisfying the requirements in section
50265(b)(2) of the IRA for any offshore wind lease issued by December
20, 2024. BOEM expects to issue any leases resulting from ATLW-10 no
later than the one-year anniversary of Lease Sale 261.
Authority: 43 U.S.C. 1337(p); 30 CFR 585.211 and 585.216.
Elizabeth Klein,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2024-14462 Filed 6-28-24; 8:45 am]
BILLING CODE 4340-98-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.