Notice2024-21081
Atlantic Wind Lease Sale 11 for Commercial Leasing for Wind Power Development on the U.S. Gulf of Maine 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
September 17, 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 11 (ATLW-11) on the U.S. Outer Continental Shelf (OCS) in the Gulf of Maine. 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 eight leases for sale using an ascending clock auction with multiple-factor bidding: Lease OCS-A 0562, OCS-A 0563, OCS-A 0564, OCS-A 0565, OCS-A 0566, OCS-A 0567, OCS-A 0568, and OCS-A 0569 (lease areas). The first two lease areas (lease areas OCS-A 0562 and OCS-A 0563) comprise the North Region, and the remaining six lease areas comprise the South Region. Bidders are limited to bidding on no more than two lease areas at a time, and may not include in their bid more than one lease area in the North Region at a time. BOEM will use the BOEM Auction System for the lease sale. The lease areas are in the previously identified wind energy areas located in the Gulf of Maine offshore the States of Maine and New Hampshire and the Commonwealth of Massachusetts. 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 180 (Tuesday, September 17, 2024)</title>
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[Federal Register Volume 89, Number 180 (Tuesday, September 17, 2024)]
[Notices]
[Pages 76132-76146]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-21081]
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DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
[Docket No. BOEM-2024-0026]
Atlantic Wind Lease Sale 11 for Commercial Leasing for Wind Power
Development on the U.S. Gulf of Maine Outer Continental Shelf--Final
Sale Notice
AGENCY: Bureau of Ocean Energy Management, Interior.
ACTION: Final sale notice; request for comments.
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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 11 (ATLW-11) on the U.S. Outer Continental
Shelf (OCS) in the Gulf of Maine. 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 eight leases for sale using an ascending
clock auction with multiple-factor bidding: Lease OCS-A 0562, OCS-A
0563, OCS-A 0564, OCS-A 0565, OCS-A 0566, OCS-A 0567, OCS-A 0568, and
OCS-A 0569 (lease areas). The first two lease areas (lease areas OCS-A
0562 and OCS-A 0563) comprise the North Region, and the remaining six
lease areas comprise the South Region. Bidders are limited to bidding
on no more than two lease areas at a time, and may not include in their
bid more than one lease area in the North Region at a time. BOEM will
use the BOEM Auction System for the lease sale. The lease areas are in
the previously identified wind energy areas located in the Gulf of
Maine offshore the States of Maine and New Hampshire and the
Commonwealth of Massachusetts. 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 October 24, 2024.
The monetary auction will be held online and will begin at 9:00 a.m.
EDT on October 29, 2024. Additional details are provided in the section
entitled, ``Deadlines and Milestones for Bidders.''
FOR FURTHER INFORMATION CONTACT: Zachary Jylkka, Bureau of Ocean Energy
Management, <a href="/cdn-cgi/l/email-protection#8fd5eeece7eefdf6a1c5f6e3e4e4eecfede0eae2a1e8e0f9"><span class="__cf_email__" data-cfemail="a8f2c9cbc0c9dad186e2d1c4c3c3c9e8cac7cdc586cfc7de">[email protected]</span></a> or (978) 491-7732; or Gina Best,
Bureau of Ocean Energy Management, <a href="/cdn-cgi/l/email-protection#afe8c6c1ce81edcadcdbefcdc0cac281c8c0d9"><span class="__cf_email__" data-cfemail="acebc5c2cd82eec9dfd8eccec3c9c182cbc3da">[email protected]</span></a> or (703) 787-
1341.
SUPPLEMENTARY INFORMATION:
I. Background
a. Request for Interest (RFI): On August 19, 2022, BOEM published
an RFI for the Gulf of Maine in the Federal Register (see 87 FR 51129).
BOEM received 51 unique comments on the RFI. Five developers nominated
areas for a commercial wind energy lease within the RFI Area.
b. Call for Information and Nominations (Call): On April 26, 2023,
BOEM published a ``Call for Information and Nominations for Commercial
Leasing for Wind Power Development on the Gulf of Maine'' (see 88 FR
25427). BOEM received 127 unique comments on the Call. Seven developers
nominated areas for a commercial wind energy lease within the Call
Area.
c. Area Identification (Area ID): An Area ID determination is a
required regulatory step under the renewable energy competitive leasing
process used to identify areas for environmental analysis and
consideration for leasing. After the close of the Call comment period,
BOEM initiated the Area ID process using information and input from
stakeholders received up to that point.
BOEM and the National Oceanic and Atmospheric Administration's
(NOAA) National Centers for Coastal Ocean Science (NCCOS) collaborated
in employing an ocean planning tool (the NCCOS model) to help identify
an area that appears suitable for floating offshore wind energy leasing
and development in the Gulf of Maine. The Area ID process seeks to
identify and minimize potential conflicts in ocean space as well as to
mitigate interactions with other users and adverse interactions with
the environment; the NCCOS model supports that effort. BOEM employed
the NCCOS model during two distinct steps of the Area ID process:
first, to model relative suitability within the boundaries of the Call
Area to identify the draft Wind Energy Area (WEA); and second, to
[[Page 76133]]
model the relative suitability within the boundaries of the draft WEA.
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>, on
October 19, 2023, BOEM announced the Gulf of Maine draft WEA and opened
a 30-day public comment period. The methodology used to delineate the
Gulf of Maine draft WEA is outlined in the ``Draft NCCOS Report: A Wind
Energy Area Siting Analysis for the Gulf of Maine Call Area.'' \1\ The
draft WEA covered approximately 3.5 million acres. BOEM considered the
following non-exclusive information sources when identifying the draft
WEA: comments and nominations received on the Call; information from
the Gulf of Maine Intergovernmental Renewable Energy Task Force (Task
Force); input from federally recognized Tribes; input from State and
federal agencies; comments from stakeholders and ocean users, including
the maritime community, offshore wind developers, and the commercial
and recreational fishing industry; input from state and local
governments on renewable energy goals; and information on domestic and
global offshore wind market and technological trends.
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\1\ Available at <a href="https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/Gulf_of_Maine_Draft%20WEA_Report_NCCOS_0.pdf">https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/Gulf_of_Maine_Draft%20WEA_Report_NCCOS_0.pdf</a>.
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BOEM completed the Area ID process after considering additional
input received from stakeholders during the draft WEA comment period.
BOEM published the final WEA on March 15, 2024. The final WEA comprises
approximately 2 million acres and represents an 80% reduction from the
size of the Call Area and a 43% reduction from the draft WEA. The final
WEA has the potential to support generation of 32 gigawatts (GW) of
clean energy, surpassing current State goals for offshore wind energy
in the Gulf of Maine (13-18 GW, based on Massachusetts' and Maine's
offshore wind goals and estimates provided by the regional grid
operator, ISO-New England). The size of the final WEA allows BOEM to
consider additional ways to reduce conflicts with users and resources,
while also supporting the region's renewable energy goals. For
additional information, the Gulf of Maine Area ID documentation can be
found at <a href="https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine">https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine</a>.
d. Proposed Sale Notice: On April 30, 2024, BOEM announced the
Proposed Sale Notice (PSN) for the Gulf of Maine, which initiated a 60-
day comment period lasting from May 1, 2024, through July 1, 2024. The
eight proposed lease areas totaled 969,999 acres (944,422 developable
acres), accounting for approximately half of the final WEA. In
identifying these areas from the final WEA, BOEM prioritized avoidance
of offshore fishing grounds and identification of vessel transit
routes, while retaining sufficient acreage to support the region's
offshore wind energy goals (13-18 GW based on information from
Massachusetts, Maine, and ISO-New England). BOEM conducted several
meetings focused primarily on the PSN, including: five virtual public
meetings; one virtual meeting with Gulf of Maine Tribes; four in-person
public meetings; and one in-person Task Force meeting. Additional
information on these meetings is located on the BOEM website: <a href="https://www.boem.gov/renewable-energy/state-activities/gulf-maine-proposed-sale-notice-psn-public-meetings">https://www.boem.gov/renewable-energy/state-activities/gulf-maine-proposed-sale-notice-psn-public-meetings</a>.
e. Environmental Reviews: On March 18, 2024, BOEM published a
notice of intent to prepare an environmental assessment (EA) to
consider potential environmental impacts of site characterization
activities (e.g., biological, archaeological, geological, and
geophysical surveys and core samples) and site assessment activities
(e.g., installation of meteorological buoys) that are expected to take
place after issuance of wind energy leases (89 FR 19354). When scoping
the EA, BOEM sought comments on the issues and alternatives that should
inform the EA. BOEM received 38 comment submissions, which can be found
at <a href="https://www.regulations.gov">https://www.regulations.gov</a> in docket no. BOEM-2024-0020. On June
21, 2024, BOEM published a notice of availability (NOA) of a draft EA
in the Federal Register (89 FR 52086). BOEM received 164 comment
submissions, which can be found at <a href="https://www.regulations.gov">https://www.regulations.gov</a> in
docket no. BOEM-2024-0030. In addition to the preparation of the draft
EA, BOEM has initiated required consultations under the Endangered
Species Act (ESA), the Magnuson-Stevens Fishery Conservation and
Management Act (MSFCMA), and the Coastal Zone Management Act. The draft
EA can be found at: <a href="https://www.boem.gov/renewable-energy/state-activities/gomeclea">https://www.boem.gov/renewable-energy/state-activities/gomeclea</a>. On September 9, 2024, BOEM published a NOA of a
final EA in the Federal Register (Docket Number BOEM-2024-0030). The
final EA can be found here: <a href="https://www.boem.gov/renewable-energy/state-activities/gome_FinalEA">https://www.boem.gov/renewable-energy/state-activities/gome_FinalEA</a>. BOEM completed ESA consultation with the
U.S. Fish and Wildlife Service on August 26, 2024. Consultation with
the National Marine Fisheries Service (NMFS) for MSFCMA and ESA have
not been completed prior to publication of this notice. BOEM has
provided NMFS with a Biological Assessment for ESA consultation and an
Essential Fish Habitat Assessment for MSFCMA consultation. Based on the
assessments that BOEM prepared for these consultations, BOEM does not
expect impacts that are significantly different in kind or magnitude
from those it has identified in previous wind lease sales. BOEM will
not execute any leases in the Gulf of Maine prior to the completion of
all consultations. 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 leases issued as a result of
this sale reach that stage of development.
II. List of Eligible Bidders
BOEM has determined that the following 14 entities are legally,
technically, and financially qualified to bid in the ATLW-11 auction,
pursuant to 30 CFR 585.107 and 585.108:
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Company name Company No.
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Avangrid Renewables, LLC................................ 15019
Equinor Wind US LLC..................................... 15058
US Mainstream Renewable Power Inc....................... 15089
Diamond Wind North America, LLC......................... 15113
Hexicon USA, LLC........................................ 15151
Seaglass Offshore Wind II, LLC.......................... 15155
TotalEnergies SBE US, LLC............................... 15165
Pine Tree Offshore Wind, LLC............................ 15167
energyRe Offshore Wind Holdings, LLC.................... 15171
OW Gulf of Maine LLC.................................... 15175
Repsol Renewables North America, Inc.................... 15180
Maine Offshore Wind Development LLC..................... 15181
Corio USA Projectco LLC................................. 15182
Invenergy NE Offshore Wind LLC.......................... 15197
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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
[[Page 76134]]
joint venture (when established as a separate entity) that is
participating in the same auction. BOEM considers bidding entities to
be affiliated when:
i. They own or have common ownership of more than 50 percent of the
voting securities, or instruments of ownership or other forms of
ownership, of another bidding entity. Ownership of less than 10 percent
of a bidding entity constitutes a presumption of non-control that BOEM
may rebut.
ii. They own or have common ownership of between 10 and 50 percent
of the voting securities or instruments of ownership, or other forms of
ownership, of another bidding entity, and BOEM determines that there is
control upon consideration of factors including the following:
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 September 27, 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/maine/gulf-maine">https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine</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
via email in PDF format to <a href="/cdn-cgi/l/email-protection#1d6f7873786a7c7f71787873786f7a645d7f727870337a726b"><span class="__cf_email__" data-cfemail="5321363d362432313f36363d3621342a13313c363e7d343c25">[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 $2,000,000 per lease area sought for a maximum of two
lease areas no later than October 11, 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 X, of this notice.
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 via email to <a href="/cdn-cgi/l/email-protection#37455259524056555b5252595245504e775558525a19505841"><span class="__cf_email__" data-cfemail="6210070c071503000e07070c0710051b22000d070f4c050d14">[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 October 24,
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 October 29, 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
[[Page 76135]]
``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 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. A winner may request in writing an extension of the 10-
business-day time limit and BOEM, in its discretion, may grant such
extensions, pursuant to 30 CFR 585.225(d).
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
In response to comments received on the PSN and consultation with
Tribes and Federal agencies, BOEM is offering eight lease areas
totaling 850,082 acres for sale through this notice (Figure 1). The
eight areas in the PSN have been reduced by approximately 12% to
address ocean user conflicts in response to comments and input from
ocean users, including the fishing industry, the U.S. Coast Guard
(USCG) and navigation interests, and NMFS. BOEM's designation of the
eight 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 262 comments that BOEM
received in response to the PSN. Based on the information gained
through that coordination and comment review, BOEM has decided to
remove from current leasing consideration several areas that overlap
with a combination of offshore fishing activity, vessel transit,
seafloor features identified by NMFS as potentially sensitive to
impacts from offshore wind facility construction, and areas of
relatively higher densities of North Atlantic right whale sightings and
detections. The eight areas BOEM is offering for lease are described in
Table 1. Descriptions of the proposed lease areas may be found in
Addendum A of each of the proposed leases, located on BOEM's website at
<a href="https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine">https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine</a>. Several leases are subject to a lease stipulation that would
prohibit surface or subsurface development in portions of the lease
that are adjacent to corridors BOEM created between leases to
facilitate existing and future vessel transit (see Addendum C, Section
10 of the lease). For those leases, the total ``developable acres'' are
less than the total ``lease acres'' as described in Table 1.
Table 1--Gulf of Maine Lease Areas, Acres, and Assigned Region
----------------------------------------------------------------------------------------------------------------
Net change
Developable from PSN
Lease area ID Region Total acres acres (developable
acres)
----------------------------------------------------------------------------------------------------------------
OCS-A 0562............................ North................... 97,854 97,854 -23,485
OCS-A 0563............................ North................... 105,682 105,682 -26,687
OCS-A 0564............................ South................... 98,565 93,756 -11,743
OCS-A 0565............................ South................... 103,191 103,191 -12,099
OCS-A 0566............................ South................... 96,075 96,075 -31,313
OCS-A 0567............................ South................... 117,780 113,208 -4,183
OCS-A 0568............................ South................... 124,897 116,363 -7,026
OCS-A 0569............................ South................... 106,038 101,757 0
-----------------------------------------------
Total............................. ........................ 850,082 827,886 -116,536
Average........................... ........................ 106,260 103,486 -14,567
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[[Page 76136]]
[GRAPHIC] [TIFF OMITTED] TN17SE24.041
Figure 1--Gulf of Maine Lease Areas
a. Habitat Avoidance: Several commentors recommended BOEM remove
proposed lease areas due to concerns about overlap with or proximity to
sensitive benthic habitat. These comments contributed to the decision
to remove the portions of four lease areas. Lease area 0562's (and to a
lesser extent, 0563's) proximity to the Jeffreys Bank Habitat
Management Area contributed to the decision to remove the northern
portion of those lease areas. In addition, NMFS recommended BOEM avoid
leasing in areas of potential hardbottom and high bathymetric change
potentially suitable for coral habitat, as shown in the results of the
spring 2024 R/V Connecticut surveys within lease areas 0567 and 0568.
These data contributed to removals of acreage in the northeastern
portion of 0567 and southeastern portion of 0568. BOEM also considered
a comment from the wind industry requesting that BOEM focus any
adjustments to lease boundaries on reductions to bathymetric
heterogeneity.
b. Facilitating Fishing Activity: Throughout the Gulf of Maine
planning and leasing process BOEM has prioritized avoidance of areas
with high fishing vessel activity, revenue, and landings. Understanding
that the best available commercial and recreational fishing data still
have limitations and caveats, BOEM has engaged extensively with the
fishing industry, fishing communities, and Tribes to bolster BOEM's
understanding of the historic and current uses of the lease areas.
These engagements and data analyses, combined with PSN comments,
contributed to the decision to remove portions of seven lease areas:
northern portion of 0562 and 0563 (herring and groundfish fishing
effort); western edge of 0564, eastern edge of 0565, western portion of
0566, northeastern portion of 0567, and northwestern portion of 0568
(groundfish fishing effort).
c. Vessel Transit Considerations: As noted in the PSN, BOEM is
aware of the overlap of lease areas 0562 and 0563 (as proposed in the
PSN) with a portion of the USCG proposed Gulf of Maine fairway as
described in the Maine, New Hampshire, Massachusetts Port Access Route
Study (MNMPARS). While that fairway has not yet been established,
ongoing consultation with the USCG, along with comments received
through the PSN regarding concerns with transit, North Atlantic right
whale detections, fishing effort, and habitat concerns, all contributed
to BOEM's decision to remove the portion of lease areas 0562 and 0563
that previously overlapped with the proposed fairway.
d. As part of the PSN, BOEM also created three corridors between
leases to facilitate existing and future transit through proposed lease
areas.\2\ These areas occur in a Northwest to Southeast direction, as
well as in an East and West direction, and have a minimum width of 2.5
nautical miles (nm). Commenters generally supported these transit
areas; however, several commenters also requested corridors be created
between lease areas 0562 and 0563, as well as between 0565 and 0566.
BOEM did not incorporate a corridor between 0562 and 0563, given the
lease areas' relative isolation (no immediate surrounding lease areas)
and the reduction in lease area size due to the avoidance of the
proposed Gulf of Maine fairway (described above). Additionally, the
Surface Structure Layout and Orientation lease stipulation (see
Addendum C, Section 10 of the lease) applies to lease areas 0562 and
0563. BOEM has removed portions of lease areas 0565 and 0566 creating
an approximate 3.5 nm wide corridor
[[Page 76137]]
primarily to facilitate existing groundfishing activities (see
Facilitating Fishing Activity section, above); however, this will also
facilitate future transit through those lease areas.
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\2\ BOEM does not have the authority to designate transit lanes.
The United States Coast Guard's (USCG) authority to provide safe
access routes for the movement of vessel traffic is found in the
Ports and Waterways Safety Act. See 46 U.S.C. 70003.
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e. Map of the Area Proposed for Leasing: In addition to Figure 1,
maps of the lease areas, and various GIS spatial files may be found on
BOEM's website at <a href="https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine">https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine</a>.
V. New and Modified Lease Stipulations
BOEM has modified or added several lease stipulations in Addendum C
of each lease related to avoiding and minimizing potential future user
conflicts and environmental impacts and project design. This section
summarizes the major updates, but is not an exhaustive list of every
change.
a. Changes related to the Modernization Rule: Since the publication
of the PSN, the Renewable Energy Modernization Rule (89 FR 42602) has
become effective, resulting in updates to BOEM's regulations. As a
result, BOEM has modified the lease form for this sale to comport with
those new regulations in three ways: simple citation and language
updates; removing references to lease ``terms'' and replacing them with
references to lease ``periods'' under 30 CFR 585.235; and revising the
stipulations in Addendum C to adhere to the EA's standard operating
conditions in a regulatory scheme where a lessee is no longer required
to submit a Site Assessment Plan to install a meteorological and/or
oceanographic buoy under 30 CFR 585.600(a)(1).
b. Surface Structure Layout and Orientation: BOEM has modified the
lease stipulation ``Surface Structure Layout and Orientation'' (see
Addendum C, Section 10 of the lease), which requires lessees with
directly adjacent leases (e.g., OCS-A 0562 and 0563) to design a
surface structure layout that contains two common lines of orientation
across the adjacent leases (as described in Navigation and Vessel
Inspection Circular 02-23). If the lessees cannot agree on such a
layout, each lessee would be required to incorporate a setback area
from the boundary of the adjacent lease within which area surface and
subsurface structures are prohibited.
Based on comments received on the PSN, BOEM has decided to increase
the previous setback distance from 1 nm to 1.25 nm. This would create a
minimum 2.5 nm distance between the proposed facilities of each lessee
along the lease boundary. Given uncertainties with how potential
lessees will propose to construct their floating wind projects, BOEM
reserves the right to require additional mitigations at the COP
approval stage, including increases to this setback distance.\3\
---------------------------------------------------------------------------
\3\ See: ABS (American Bureau of Shipping). 2012. Floating Wind
Turbines. Final Report: BSEE TAP 669 (Contract M11PC00004).
---------------------------------------------------------------------------
The previous 1 nm setback distance was based on USCG
recommendations to alert mariners and search and rescue operations of a
layout change between adjacent leases, not to create a corridor for
navigation. However, BOEM recognizes that if future leaseholders of
lease areas 0562 and 0563 do not choose to implement two common lines
of orientation, a de facto corridor would be created and, therefore,
vessels would likely use it for navigation and potentially for fishing
activities. Therefore, BOEM increased the setback distance and included
a provision to prohibit surface and subsurface occupancy in those
setback areas, so that the combined setback area matches the width and
provisions of the BOEM designated corridors between the leases in the
southern region of the final WEA.
c. Habitat Impact Minimization Measures: BOEM recognizes that there
are documented deep sea coral locations within one of the lease areas
(0567),\4\ and recent surveys conducted by NOAA in spring 2024
indicated there may be additional habitat suitable for corals in lease
areas 0567 and 0568. In response to these data, as well as PSN comments
related to protection of living bottom habitat, BOEM has included a new
lease stipulation requiring lessees to use the best available
information to avoid and minimize bottom-disturbing activities to
sensitive biological resources or habitats to the maximum extent
practicable. Lessees are required to conduct geophysical surveys prior
to geotechnical surveys to identify potential munitions of concern,
unexploded ordinances, and archaeological resources. Information about
sensitive biological resources gained through these surveys will become
part of the best available information lessees must use when conducting
bottom disturbing activities. Additional information on this topic can
be found in Section VI: Potential Future Restrictions below.
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\4\ See: <a href="https://www.ncei.noaa.gov/maps/deep-sea-corals/mapSites.htm">https://www.ncei.noaa.gov/maps/deep-sea-corals/mapSites.htm</a>.
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d. Baseline Monitoring: In the PSN, BOEM proposed and requested
comments on a potential lease stipulation that would require lessees to
conduct baseline data collection activities for endangered and
threatened marine mammals and their habitats in support of developing
their COPs. BOEM received many comments in support and has decided to
include a new stipulation requiring lessees to collect a minimum of
three years of passive acoustic monitoring data for large whales in the
Gulf of Maine North Atlantic Right Whale Critical Habitat to support
the submission of the COP. The stipulation also includes requirements
concerning data collection, transparency, and sharing. While this pre-
COP requirement does not extend beyond large whales, BOEM refers
lessees to additional baseline monitoring requirements, as outlined in
BOEM's ``Information Guidelines for a Renewable Energy Construction and
Operations Plan (COP)'' and ``Final Information Needed for Issuance of
a Notice of Intent (NOI) Under the National Environmental Policy Act
(NEPA) for a Construction and Operations Plan (COP).'' \5\
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\5\ <a href="https://www.boem.gov/cop-guidelines">https://www.boem.gov/cop-guidelines</a>; <a href="https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/BOEM%20NOI%20Checklist.pdf">https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/BOEM%20NOI%20Checklist.pdf</a>.
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e. Hosted Engagement Opportunities: BOEM recognizes the importance
of engagement with Tribes, stakeholders, and oceans users at all stages
of the process and acknowledges comments received in response to the
PSN that advocate for additional engagement opportunities. BOEM may
initiate and host meetings after the lease sale to facilitate early and
continuous engagement between Tribes, lessees, stakeholders, ocean
users, and Federal partners. Therefore, BOEM has introduced a lease
stipulation, Addendum C, 3.1.2, that requires lessees to engage in
meeting planning and participate in the meetings in a meaningful
manner. These provisions, combined with the enhanced engagement and
progress reporting framework, are designed to encourage development of
Gulf of Maine leases in a manner that reflects the community they are
within.
VI. Potential Future Restrictions
a. Stellwagen Bank National Marine Sanctuary: Several of the Gulf
of Maine lease areas are adjacent to the Stellwagen Bank National
Marine Sanctuary. BOEM recognizes that future development within the
lease areas may necessitate installation of energy transmission cables
within the sanctuary boundaries in identified cable corridors. Under
the authority of the National Marine Sanctuaries Act, NOAA may consider
authorizing installation of energy transmission cables within
[[Page 76138]]
sanctuary boundaries through one or more of the following mechanisms--
General Permits, Authorizations, Certifications, and Special Use
Permits.
b. Potential Future Restrictions to Mitigate Potential Conflicts
with Department of Defense (DoD) Activities: Potential bidders should
be aware of potential conflicts with DoD's existing uses of the OCS.
BOEM has coordinated with DoD throughout the leasing process. This
included consultation with the Military Aviation and Installation
Assurance Siting Clearinghouse, which conducted a DoD assessment of the
Gulf of Maine Draft WEA. The assessment identified potential impacts,
which are described below.
<bullet> Air Surveillance and Radar: The North American Aerospace
Defense Command (NORAD) mission may be affected by development of the
lease areas. Similar impacts have been encountered with other lease
areas along the Atlantic Coast and have been largely if not entirely
mitigated. Considering both the expected height of offshore turbines
and future cumulative wind turbine effects, adverse impacts can be
mitigated through the use of Radar Adverse-impact Management (RAM) \6\
and overlapping radar coverage. For projects where RAM mitigation is
acceptable, BOEM anticipates including the following project approval
conditions:
---------------------------------------------------------------------------
\6\ RAM is the technical process designed to minimize the
adverse impact of obstruction interference on a radar system.
--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;
--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
--Lessee will curtail wind turbine operations for national security or
defense purposes as described in the lease.
<bullet> Department of Navy operations: While the Navy did not
identify any conflicts with the Final WEA, mitigations to resolve
potential conflicts with ship testing may be necessary depending on the
specific projects proposed within the lease areas.
BOEM may require the lessee to enter into an agreement with DoD to
implement any necessary conditions and mitigate any identified impacts.
BOEM will further coordinate with DoD and the lessee to eliminate
potential conflicts throughout the project review stage, which may
result in adding mitigation measures or terms and conditions as part of
any plan approval.
c. Potential Future Restrictions to Mitigate Conflicts with Sand
Resources: Potential bidders are advised that BOEM has identified sand
resource areas in aliquots offshore the Gulf of Maine (Marine Minerals
Information System (MMIS) Application <a href="https://mmis.doi.gov/BOEMMMIS">https://mmis.doi.gov/BOEMMMIS</a>).
OCS sand resource areas are composed of sand deposits found on or below
the surface of the OCS seabed. There are also potential sand resources
in other areas in the Gulf of Maine not currently identified in MMIS
datasets (e.g., Sand Resources and Atlantic OCS Aliquots with Sand
Resources). If it is determined that accessible and significant OCS
sand resources may be impacted by a proposed activity, BOEM may require
lessees to undertake measures deemed economically, environmentally, and
technically feasible to protect the resources to the maximum extent
practicable, including minimizing, avoiding, and mitigating impacts to
these resources. Measures may include modification of proposed
transmission corridor locations if warranted. Neither BOEM nor the
Bureau of Safety and Environmental Enforcement will approve future
requests for in-place decommissioning of submarine cables in sand
resource areas unless BOEM has determined that the submarine cables do
not unduly interfere with other uses of the OCS, specifically sand
resource use.
d. Potential Future Restrictions to Mitigate Possible Conflicts
with Deep-Sea Corals and Biologically Sensitive Benthic Habitat:
Potential bidders are advised that in the Gulf of Maine final WEA, NOAA
has identified the presence of deep-sea corals and sponges, as well as
hardbottom habitat areas suitable for sensitive deep-sea coral and
sponge species. In addition, data collected during a spring 2024
research expedition within lease areas 0567 and 0568 indicates that
there are additional areas that may contain sensitive or vulnerable
hard-bottom features suitable for coral and sponge habitat.\7\
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\7\ See: <a href="https://coastalscience.noaa.gov/news/research-expedition-explores-gulf-of-maine-near-proposed-offshore-wind-energy-lease-areas/">https://coastalscience.noaa.gov/news/research-expedition-explores-gulf-of-maine-near-proposed-offshore-wind-energy-lease-areas/</a>.
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BOEM has included a new lease stipulation for the leases within
this FSN to require lessees to avoid or minimize bottom disturbing
activities that may affect sensitive biological resources or habitats
during any site assessment and site characterization activities to the
maximum extent practicable. Furthermore, any site assessment and site
characterization activities authorized by a lease would be subject to
the protections for live-bottom features included in BOEM's
programmatic consultation with the NMFS under ESA Section 7 (Addendum
C, 5.2 in the leases). BOEM will conduct additional environmental
review upon receipt of a lessee's COP and, as a condition of approval,
may require avoidance measures to reduce potential impacts to sensitive
benthic species and habitat within the lease area.
e. Existing Submarine Cable Infrastructure within Lease Areas:
Potential bidders are advised that several lease areas overlap with
existing submarine cable infrastructure. Lease areas 0564 and 0565
overlay the Amiti[eacute] system and lease areas 0565 and 0566 overlay
the EXA Atlantic system. The locations of these cables are available on
the Northeast Ocean Data Portal. Lessees will be required to engage
with submarine cable operators early in the project development process
with the goal of deconflicting project plans before COPs are developed
(see Addendum C, 3.1 of the leases).
f. Potential Impacts to Coastal Communities and National Park
Service Properties: Potential bidders are advised that the National
Park Service (NPS) has indicated that there are units and programs of
the NPS System that would likely be affected by activities and
development of the lease areas (e.g., air, visual, and nighttime
resources). Future lessees will be required to engage with NPS, as
required by the lease's Progress Report requirements and Agency
Communication Plan, to ensure early and active information sharing,
focused discussion of potential issues, and collaborative
identification of solutions and mitigations. BOEM will also continue to
work closely with NPS through regular interagency consultation and
through collaborative work on future NEPA and National Historic
Preservation Act analysis. Future lessees will also be required to
engage with coastal communities on similar potential impacts.
VII. Lease Terms and Conditions
Along with this FSN, BOEM has made available the commercial lease
forms that will be used to issue the leases from this sale. BOEM
reserves the right to require compliance with additional terms and
conditions associated with the approval of a site assessment plan (SAP)
and COP. The leases may be
[[Page 76139]]
found on BOEM's website at: <a href="https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine">https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine</a>. Each lease includes the following
attachments:
a. Addendum A (``Description of Leased Area and Lease
Activities'');
b. Addendum B (``Lease Term and Financial Schedule'');
c. Addendum C (``Lease-Specific Terms, Conditions, and
Stipulations''); and
d. Addendum D (``Project Easement'').
Addenda A, B, and C provide detailed descriptions of lease terms,
conditions, and stipulations. Addendum D will be completed at the time
of COP approval or approval with modifications.
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 585.225(f) and 585.503, the first
year's rent payment of $3 per acre is due within 45 days after the
winning bidder receives a copy of the executed lease from BOEM. Lease
area acreage is delineated in Addendum A of the lease and, if
applicable, includes portions of a lease that do not allow surface
occupancy. Thereafter, annual rent payments are due on each anniversary
of the effective date of the lease (the ``lease anniversary'') until
your lease begins commercial operations. For example, for the 97,854
acres of Lease OCS-A 0562, the rent payment would be $293,562 per year
until commercial operations begin. Once commercial operations begin,
BOEM will charge rent only for the portions of the lease area remaining
undeveloped (i.e., non-generating acreage), as described in the lease.
If the lessee submits an application for relinquishment of a
portion of its leased area within the first 45 days after receiving the
executed lease from BOEM and BOEM approves that application, no rent
payment would be due on the relinquished portion of the lease area.
Later relinquishments of any portion of the lease area would reduce the
lessee's rent payments starting in the year following BOEM's approval
of the relinquishment.
A lease issued under 30 CFR part 585 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 $5 per acre per year, subject to a
minimum of $450 per year. If the COP revision results in increased
easement acreage, additional rent would be due at the time the COP
revision is approved.
b. Operating Fee: For purposes of calculating the initial annual
operating fee under 30 CFR 585.506, BOEM applies an operating fee rate
to a proxy for the wholesale market value of the electricity expected
to be generated from the project during its first 12 months of
operations. This initial payment will be prorated to reflect the period
between the commencement of commercial operations and the lease
anniversary. The initial annual operating fee must be paid within 90
days of the commencement of commercial operations. Thereafter,
subsequent annual operating fees must be paid on or before the lease
anniversary.
The subsequent annual operating fees will be calculated by
multiplying the operating fee rate by the imputed wholesale market
value of the projected annual electric power production. For the
purposes of this calculation, the imputed market value will be the
product of the project's annual nameplate capacity, the total number of
hours in a year (8,760), the capacity factor, and the annual average
price of electricity derived from a regional wholesale power price
index. For example, the annual operating fee for a 976-megawatt (MW)
wind facility operating at a 40 percent capacity (i.e., capacity factor
of 0.4) with a regional wholesale power price of $40 per megawatt hour
(MWh) and an operating fee rate of 0.02 would be calculated as follows:
[GRAPHIC] [TIFF OMITTED] TN17SE24.042
i. Operating Fee Rate: The operating fee rate is the share of the
imputed wholesale market value of the projected annual electric power
production due to the ONRR as an annual operating fee. For the lease
areas, BOEM proposes to set the fee rate at 0.02 (2 percent) for the
entire life of commercial operations.
ii. Nameplate Capacity: Nameplate capacity is the maximum rated
electric output, expressed in MW, which the turbines of the wind
facility under commercial operations can produce at their rated wind
speed as designated by the turbine's manufacturer.
iii. Capacity Factor: 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 years of commercial operations on the lease.
At the end of the sixth year, BOEM may adjust the capacity factor to
reflect the performance over the previous 5 years based upon the actual
metered electricity generation at the delivery point to the electrical
grid. BOEM may make similar adjustments to the capacity factor once
every 5 years thereafter.
iv. Wholesale Power Price Index: Under 30 CFR 585.506(c)(2)(i), the
wholesale power price, expressed in dollars per MWh, is determined at
the time each annual operating fee payment is due. For the leases
offered in this sale, BOEM will use the ISO New England
.H.INTERNAL_HUB. A similar price dataset may also be used and may be
posted by BOEM at <a href="https://www.boem.gov">https://www.boem.gov</a> for reference.
c. Financial Assurance: Within 10-business days after receipt of
the unsigned copy of the lease, the provisional winner must file
financial
[[Page 76140]]
assurance in accordance with 30 CFR 585.225(b)(2). The provisional
winner must provide an initial lease-specific bond or other BOEM-
approved financial assurance instrument in the amount of 12 months'
rent. The provisional winner may meet financial assurance requirements
by posting a surety bond or other financial assurance instrument or
alternative as provided in 30 CFR 585.526 through 585.529. BOEM
encourages the provisional winners to discuss financial assurance
requirements with BOEM as soon as possible after the auction has
concluded.
BOEM will base the amount of financial assurance (for all SAP, COP,
and decommissioning activities) on cost estimates for meeting all
accrued lease obligations at the respective stages of development. The
required amount of supplemental and decommissioning financial assurance
will be determined on a case-by-case basis.
The payment terms described above can be found in Addendum B of the
lease, which is available at: <a href="https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine">https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine</a>.
IX. Bidder's Financial Form
Each bidder must submit to BOEM the information listed in the BFF
referenced in this FSN. A copy of the form is available at <a href="https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine">https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine</a>. In its
BFF, each bidder must designate the email address that it will use to
create an account in <a href="https://www.pay.gov">https://www.pay.gov</a> account. BOEM must receive
BFFs, including Conceptual Strategies, no later than September 27,
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 this sale (ATLW-11), 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 tenth 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 $2,000,000 for eligibility to bid on one lease area, or
$4,000,000 for eligibility to bid on two lease areas, no later than
October 11, 2024. 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, bid deposits will be applied against the
winning bid and other obligations owed to BOEM. Once BOEM has announced
the provisional winners, BOEM will coordinate with ONRR to refund bid
deposits to the other bidders.
If BOEM offers a lease to a provisional winner and that bidder
fails to timely return the signed lease, establish financial assurance,
or pay the balance of its bid for the lease area, BOEM may require
forfeiture of the bidder's $2,000,000 bid deposit for the lease area.
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 eligible bidder. This process
may 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 proposes a minimum bid of $50.00 per acre
for this lease sale.
XII. Auction Procedures
a. Multiple-Factor Bidding Auction: BOEM will use a multiple factor
auction format for this lease sale. Under 30 CFR 585.113, multiple
factor auction means an auction that involves the use of bidding
credits to incentivize goals or actions that support public policy
objectives or maximize public benefits through the competitive leasing
auction process. For any multiple factor auction, the monetary value of
the bidding credits, if any, is added to the value of the cash bids to
determine the highest bidder. The bid made by a particular bidder in
each round of this lease sale 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 limited to bidding for two lease
areas at a time, including at most one lease area in the North Region.
BOEM will start the auction using the minimum bid price for each lease
area and will increase these prices incrementally until no more than
one bidder remains bidding on each lease area in the auction.
In response to public comments, BOEM is not revising the bidding
credit percentages from those proposed in the PSN. The total bidding
credits remain at 25 percent.
BOEM will grant bidding credits to bidders that commit to one or
both of the following, subject to BOEM's evaluation of the bidder's BFF
and Conceptual Strategy:
i. Supporting workforce training programs for the floating offshore
wind industry or supporting the development of a domestic supply chain
for the floating offshore wind industry, or a combination of both; or
ii. Establishing and contributing to a Fisheries Compensatory
Mitigation Fund or contributing to an existing fund to mitigate
potential negative impacts to Tribal subsistence fishing, commercial
fisheries, and for-hire recreational fisheries caused by offshore wind
development in the Gulf of Maine.
These bidding credits are intended to:
i. Enhance, through training, the floating offshore wind workforce
and/or enhance the establishment of a domestic supply chain for
floating offshore wind manufacturing, assembly, or services, both of
which will contribute to the expeditious and orderly development of
offshore wind resources on the OCS;
ii. Support the expeditious and orderly development of OCS
resources by mitigating potential direct impacts from proposed projects
and encouraging the investment in infrastructure germane to the
floating offshore wind industry; and
iii. Minimize potential economic effects on Tribal subsistence
fishing, commercial fisheries, and for-hire recreational fisheries
impacted by potential floating offshore wind development, as
coordination with commercial fisheries, for-hire recreational
fisheries, and Tribes whose
[[Page 76141]]
subsistence fishing is impacted by wind energy operations in the OCS
area of the Gulf of Maine will enable development of the lease area to
advance.
b. Changes to Auction Rules: BOEM will be employing the BOEM
Auction System for sales held in 2024. The auction format remains an
ascending clock auction with multiple-factor bidding. However, there
are five main changes to the ascending clock auction rules in the BOEM
Auction System, 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 specified bid price.
ii. Provisional winners will no longer be determined using a two-
step process. The auction rules are implemented in a way such that,
when the auction concludes, the bidder who remains on a lease area
after the final round becomes its provisional winner. There will be no
additional processing step.
iii. The auctions will use a `second price' rule. A given lease
area will be won by the bidder that submitted the highest bid amount
for the lease area, but the winning bidder will pay the highest bid
amount at which there was competition (i.e., the `second price').
iv. Each bidder's bidding credit will be expressed directly as a
percentage of the final price for the lease.
v. Any bid for multiple lease areas will be treated as independent
bids for those lease areas, rather than as a package bid.
All five of these changes are applicable to the ATLW-11 sale. All
potential bidders should review the complete Auction Procedures for
Offshore Wind Lease Sales (Version 1) located at: <a href="https://www.boem.gov/renewable-energy/lease-and-grant-information">https://www.boem.gov/renewable-energy/lease-and-grant-information</a>.
c. The Auction: Using an online bidding system to host the auction,
BOEM will start the bidding for the lease areas as described below.
Table 4--Gulf of Maine Proposed Lease Areas and Minimum Bids
----------------------------------------------------------------------------------------------------------------
Lease area ID Region Acres Minimum bid
----------------------------------------------------------------------------------------------------------------
OCS-A 0562.................................... North........................... 97,854 $4,892,700
OCS-A 0563.................................... North........................... 105,682 5,284,100
OCS-A 0564.................................... South........................... 98,565 4,928,250
OCS-A 0565.................................... South........................... 103,191 5,159,550
OCS-A 0566.................................... South........................... 96,075 4,803,750
OCS-A 0567.................................... South........................... 117,780 5,889,000
OCS-A 0568.................................... South........................... 124,897 6,244,850
OCS-A 0569.................................... South........................... 106,038 5,301,900
----------------------------------------------------------------------------------------------------------------
BOEM will allow each qualified entity to bid for and ultimately win
a maximum of two leases each, including a maximum of one lease area in
the North Region as shown in Table 4. As such, a bidder can bid for and
win a maximum of two South Region leases, or one North Region lease and
one South Region lease--but cannot bid for or win both North Region
leases.
The auction will be conducted in a series of rounds. Before each
round, the auction system will announce the prices for each lease area
offered in the auction. In Round 1, there is a single price for each
lease area equal to the minimum bid price (also known as the `opening
price' or `clock price of Round 1'). Each bidder can bid, at the
opening prices, for as many lease areas as the bidder is eligible, as
determined by the bidder's bid deposit, and subject to a maximum of one
lease area in the North Region. After Round 1, the bidder's ``processed
demand'' is one for each lease area for which the bidder bid in Round
1.\8\ The bidder's eligibility for Round 2 equals the number of lease
areas for which the bidder bid in Round 1.
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\8\ Bidders specify their demand for a lease area with either a
0 or 1 in the auction system. A demand of 1 indicates that the
bidder is bidding for the lease area. 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.
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Starting in Round 2, each lease area is assigned a range of prices
for the round. The start-of-round price is the lowest price in the
range, and the clock price is the highest price in the range. A bidder
still eligible to bid after the previous round can either (i) continue
bidding at the new round's clock price(s) for the lease area(s) for
which the bidder's processed demand is one, or (ii) submit a bid(s) to
reduce demand for one (or both) of these lease area(s) at any price(s)
in the range(s) for that round. A bid to reduce demand at some price
indicates that the bidder is not willing to acquire that lease area at
a price exceeding the specified bid price. A bidder that bids to reduce
demand for one or two lease areas could bid to increase demand for up
to the same number of other lease areas in the same round.
If an eligible bidder does not place a bid during the round for a
lease area for which the bidder's processed demand is one, the auction
system will consider this a request to reduce demand for that lease
area at the round's start-of-round price. The bidder can nonetheless
win that lease area if it is the last remaining bidder for that lease
area.
After each round, the auction system processes the bids and
determines each bidder's processed demand for each lease area and the
posted prices for the lease areas. The bidder's eligibility for the
next round will equal the number of lease areas for which the bidder
had processed demand of one. If, after any round, a bidder's processed
demand is zero for every lease area, the bidder's eligibility drops to
zero and the bidder can no longer participate in the auction. The
posted price is the price determined for each lease area after
processing of all bids for a round. If only one bidder remains on a
lease area, the posted price reflects the ``second price'' (i.e., the
highest price at which there was competition for the lease area).\9\
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\9\ The Auction Procedures for Offshore Wind Lease Sales
provides details on how bids are prioritized and processed. Note
that, in the ATLW-11 sale, the processing of any bid to increase
demand will be subject to the constraints that: (1) the number of
lease areas for which the bidder's processed demand is one does not
exceed the bidder's eligibility for the round; and (2) the number of
lease areas in the North Region for which the bidder's processed
demand is one does not exceed one.
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If, after the bids for the round have been processed, there is no
lease area with excess demand (i.e., no lease areas have more than one
bidder), the auction will end. When this occurs, each bidder with
processed demand of one for a lease area will become the provisional
winner for that lease area. Otherwise,
[[Page 76142]]
the auction will continue with a new round in which the start-of-round
price for each lease area equals the posted price of the previous
round.
The increment by which the clock price exceeds the start-of-round
price will be determined based on several factors including, but not
necessarily limited to, the expected time needed to conduct the auction
and the number of rounds that have already occurred. BOEM reserves the
right to increase or decrease the increment as it deems appropriate.
The provisional winner of each lease area will pay the final posted
price (less any applicable bidding credit) or risk forfeiting its bid
deposit. A provisional winner will be disqualified if it is
subsequently found to have violated auction rules or BOEM regulations,
or otherwise engaged in conduct detrimental to the integrity of the
competitive auction. If a bidder submits a bid that BOEM determines to
be a provisionally winning bid, the bidder must sign the applicable
lease documents, post financial assurance, and submit the outstanding
balance (if any) of its winning bid (i.e., winning bid amount minus the
applicable bid deposit and any applicable bidding credits) within 10
business days of receipt of the unsigned lease copy from BOEM, pursuant
to 30 CFR 585.225(b). BOEM reserves the right to not issue the lease to
the provisionally winning bidder if that bidder fails to: timely
execute the lease and return it to BOEM, timely post adequate financial
assurance, timely pay the balance of its winning bid, or otherwise
comply with applicable regulations or the terms of the FSN. In any of
these cases, the bidder will forfeit its bid deposit and BOEM reserves
the right to offer a lease to the next highest eligible bidder as
determined by BOEM.
BOEM will publish the names of the provisional winners of the lease
areas and the associated prices shortly after the conclusion of the
sale. Full bid results, including round-by-round results of the entire
sale, will be published on BOEM's website after a review of the results
and announcement of the provisional winners.
Additional information regarding the auction format:
i. Authorized Individuals and Bidder Authentication: An entity that
is eligible to participate in the auction will identify on its BFF up
to three individuals who will be authorized to bid on behalf of the
company, including their names, business telephone numbers, and email
addresses. All individuals will log into the auction system using
<a href="http://Login.gov">Login.gov</a>. Prior to the auction, each individual listed on the BFF form
must register an account on <a href="http://Login.gov">Login.gov</a> using the same email address that
was listed in the BFF and associate a phishing-resistant multi-factor
authentication method with its <a href="http://Login.gov">Login.gov</a> account. A Fast Identity
Online (FIDO)-compliant security key \10\ is recommended as a phishing-
resistant MFA method. The login.gov registration, together with the
phishing-resistant MFA method will enable the individual to log into
the auction system. Information on the login and authentication
procedures for 2024 offshore wind lease sales is available online at:
<a href="https://www.boem.gov/renewable-energy/lease-and-grant-information">https://www.boem.gov/renewable-energy/lease-and-grant-information</a>.
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\10\ 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 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
October 29, 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 the auction contractors will use
the auction system's messaging service to keep bidders informed on
issues of interest during the auction. For example, BOEM could change
the schedule at any time, including during the auction. If BOEM changes
the schedule during the auction, it will use the messaging service to
notify bidders that a revision has been made and will direct bidders to
the relevant page. BOEM will also use the messaging service for other
updates during the auction.
iv. Bidding Rounds: Bidders are allowed to place bids or to change
their bids at any time during the 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 the FSN
and the Auction Procedures for Offshore Wind Lease Sales. Information
about the round results will be made available only after the round has
closed, so there is no strategic advantage to placing bids early or
late in the round.
The Auction Procedures for Offshore Wind Lease Sales elaborates on
the auction process described in this FSN. In the event of any
inconsistency among the Auction Procedures for Offshore Wind Lease
Sales, the Bidder Manual, and the FSN, the FSN is controlling.\11\
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\11\ Installing the Google Authenticator app is required only if
the app has not already been installed on the smartphone or tablet.
---------------------------------------------------------------------------
v. Alternate Bidding Procedures: Redundancy is the most effective
way to mitigate technical and human issues during an auction. BOEM
strongly recommends that bidders consider authorizing more than one
individual to bid in the auction and confirming during the Mock Auction
that each authorized individual is able to access the auction system. A
mobile hotspot or other form of wireless access is helpful in case a
company's main internet connection should fail. As a last resort, an
authorized individual facing technical issues may request to submit its
bid by telephone. To be authorized to place a telephone bid, an
authorized individual must contact the help desk, at the phone number
provided to bidders, before the end of the round. BOEM will
authenticate the caller's identity. The caller must 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 mobile application as
part of its procedure for identifying individuals who call for
assistance. Prior to the auction, all individuals listed on the BFF
should download the Google Authenticator mobile application \12\ onto
their smartphone or tablet.\13\ The first time the individual
[[Page 76143]]
logs into the auction system, the system will provide a QR token to be
read into the Google Authenticator application. This token is unique to
the individual and BOEM auctions. It enables the Google Authenticator
application to generate time-sensitive codes that must be provided to
the help desk representative as part of the user authentication
process.
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\12\ The Google Authenticator app must be installed from either
the Apple App Store or the Google Play Store.
\13\ Installing the Google Authenticator app is required only if
the app has not already been installed on the smartphone or tablet.
---------------------------------------------------------------------------
d. 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 in exchange for a
commitment to make a qualifying monetary contribution
(``Contribution''), in the same amount as the bidding credit received,
to programs or initiatives that support workforce training programs for
the U.S. floating offshore wind industry or development of a U.S.
domestic supply chain for the floating offshore wind industry, or both,
as described in the BFF Addendum and the lease. To qualify for this
credit, the bidder must commit to the bidding credit requirements on
the BFF and submit a Conceptual Strategy as described in the BFF
Addendum.
i. The Contribution to workforce training must result in a better
trained and/or larger domestic floating offshore wind workforce that
will provide for more efficient operations via increasing the supply of
fully trained personnel. Training of existing lessee employees, lessee
contractors, or employees of affiliated entities will not qualify as an
appropriate contribution toward fulfilling this bidding credit
commitment.
ii. The Contribution to domestic supply chain development must
result in overall benefits to the U.S. floating offshore wind supply
chain available to all potential purchasers of floating offshore wind
services, components, or subassemblies, not solely the lessee's
project; and either: (i) the demonstrable development of new domestic
capacity (including vessels) or the demonstrable buildout of existing
capacity; or (ii) an improved floating offshore wind domestic supply
chain by reducing the upfront capital or certification cost for
manufacturing floating offshore wind components, including the building
of facilities, the purchasing of capital equipment, and the certifying
of existing manufacturing facilities.
iii. Contributions cannot be used to satisfy private cost shares
for any federal tax or other incentive programs where cost sharing is a
requirement. No portion of the Contribution may be used to meet the
requirements of any other bidding credits for which the lessee
qualifies.
iv. Bidders interested in obtaining a bidding credit could choose
to contribute to workforce training programs, domestic supply chain
initiatives, or a combination of both. The Conceptual Strategy must
describe verifiable actions that the lessee will take that will allow
BOEM to confirm compliance once the lessee has submitted documentation
that shows it has satisfied the bidding credit commitment. The
Contribution must be tendered in full, and the lessee must provide
documentation evidencing it has made the Contribution and complied with
applicable requirements, no later than the date the lessee submits its
first 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 floating offshore wind energy
projects in the United States; (ii) Maritime training necessary for the
crewing of vessels to be used for the construction, servicing, and/or
decommissioning of floating wind energy projects in the United States;
(iii) Training workers in skills or techniques necessary to manufacture
or assemble floating offshore wind components, subcomponents, or
subassemblies (examples of areas involving these skills and techniques
include welding; wind energy technology; hydraulic maintenance; braking
systems; mechanical systems, including blade inspection and
maintenance; or computers and programmable logic control systems); (iv)
Tribal floating offshore wind workforce development programs or
training for Tribal citizens or employees of an Indian Economic
Enterprise \14\ in skills necessary to participate in the floating
offshore wind industry; or (v) Training in any other job skills that
the lessee can demonstrate are necessary for the assessment, planning,
design, construction, operation, maintenance, environmental monitoring,
or decommissioning of floating offshore wind energy projects in the
United States OCS.
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\14\ <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 floating offshore wind industry, including
manufacturing of components and sub-assemblies and the expansion of
related services; (ii) domestic Tier 2 \15\ and Tier 3 \16\ floating
offshore wind component suppliers and domestic Tier-1 \17\ supply chain
efforts, including quay-side fabrication; (iii) technical assistance
grants to help U.S. manufacturers re-tool or certify (e.g., ISO-9001)
for floating offshore wind manufacturing; (iv) development of Jones
Act-compliant vessels for the construction, servicing, and/or
decommissioning of floating wind energy projects in the United States,
including semi-submersible barges for use during quayside
manufacturing, assembly, or installation; (v); purchase and
installation of self-propelled modular transporter systems (SPMTs),
lift cranes capable of installing foundations, towers, and nacelles
quayside, and domestic mooring manufacturing facilities; (vi) port
infrastructure related to floating offshore wind component
manufacturing and preparation of quayside manufacturing and assembly
areas for the construction and deployment of floating foundations, or
other components of floating offshore wind turbines; (vii) establishing
a new or existing bonding support reserve or revolving fund available
to all businesses providing goods and services to floating offshore
wind energy companies, including disadvantaged businesses \18\ and/or
Indian Economic Enterprises; or (viii) other supply chain development
efforts that the lessee can demonstrate further the manufacturing of
floating offshore wind components or subassemblies or the provision of
floating offshore wind services in the United States.
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\15\ Tier 2: Subassemblies are the systems that have a specific
function for a Tier 1 component. They may include subassemblies of a
number of smaller parts, such as a pitch system for blades. Tier 2
manufacturers contract with Tier 1 suppliers as a subcontractor or
vendor.
\16\ Tier 3: Subcomponents are commonly available items that are
combined into Tier 2 subassemblies, such as motors, bolts, and
gears. Tier 3 manufacturers are typically vendors that provide
components to Tier 2 suppliers.
\17\ Tier 1 components examples include the primary offshore
wind components such as the blades, nacelles, towers, foundations,
and cables. Tier 1 components are the major products that are
purchased by an offshore wind project developer, such as the wind
turbine, foundation, or cables. Tier 1 suppliers are primary
suppliers that contract directly with the project developer.
Contributions for Tier 1 supply chain development can include
infrastructure necessary for quayside manufacturing, fabrication, or
assembly.
\18\ A disadvantaged business entity would be one at least 51%
owned and controlled by a socially and economically disadvantaged
individual or individuals as defined by the Small Business
Administration.
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[[Page 76144]]
vii. Documentation: If a lease is issued pursuant to a winning bid
that includes a bidding credit for workforce training or supply chain
development, the lessee must provide documentation showing that the
lessee has met the financial commitment before the lessee submits the
first FDR for the lease. The documentation must allow BOEM to
objectively verify the amount of the Contribution and the
beneficiary(ies) of the Contribution.
At a minimum, the documentation must include: all written
agreements between the lessee and beneficiary(ies) of the Contribution,
which must detail the amount of the Contribution(s) and how it will be
used by the beneficiaries of the Contribution(s) to satisfy the goals
of the bidding credit for which the Contribution was made; all receipts
documenting the amount, date, financial institution, and the account
and owner of the account to which the Contribution was made; and sworn
statements by the entity that made the Contribution and the
beneficiary(ies) of the Contribution attesting that all information
provided in the above documentation is true and accurate. The
documentation would need to describe how the funded initiative or
program has advanced, or is expected to advance, U.S. floating offshore
wind workforce training or supply chain development. The documentation
must also provide qualitative and/or quantitative information that
includes the estimated number of trainees or jobs supported, or the
estimated leveraged supply chain investment resulting or expected to
result from the Contribution. The documentation must contain any
information called for in the Conceptual Strategy that the lessee
submitted with its BFF and to allow BOEM to objectively verify (i) the
amount of the Contribution and the beneficiary(ies) of the
Contribution, and (ii) compliance with the bidding credit criteria
provided in Addendum C of the lease. If the lessee's implementation of
its Conceptual Strategy changes due to market needs or other factors,
the lessee must explain the changed approach. BOEM reserves all rights
to determine that bidding credit criteria have not been satisfied if
changes from the lessee's Conceptual Strategy result in the lessee not
meeting the criteria for the bidding credit described in Addendum C of
the lease.
viii. Enforcement: The commitment for the bidding credit will be
made in the BFF and would 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 would be the underpayment
interest rate identified by ONRR. The lessee would not be required to
pay said amount if the lessee satisfied its bidding credit requirements
but failed to develop the lease by the tenth lease anniversary. BOEM
could, at its sole discretion, extend the documentation deadline beyond
the first FDR submission or extend the lease development deadline
beyond the 10-year timeframe.
e. 12.5 percent Bidding Credit for Fisheries Compensatory
Mitigation Fund: The second bidding credit allows 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 Tribal subsistence fishing, commercial
fisheries, and for-hire recreational fisheries in the Gulf of Maine
resulting from project development under the Lease. The term ``Tribal
subsistence fishing'' for the purpose of this bidding credit refers to
a fishery where the fish caught are shared and consumed directly by the
families, kin, and fellow Tribal members of the fishers rather than
being sold. The term ``commercial fisheries'' refers to commercial and
processing businesses engaged in the act of catching and marketing fish
and shellfish for sale from the Gulf of Maine. The term ``for-hire
recreational fisheries'' refers to charter and headboat fishing
operations involving vessels-for-hire engaged in recreational fishing
in the Gulf of Maine that are hired for a charter fee by an individual
or group of individuals for the exclusive use of that individual or
group of individuals. Lessees are encouraged to coordinate with other
lessees to establish or contribute to a regional fund. The regional
fund should ensure lease-specific claims are accounted for. At a
minimum, the compensation must address the following:
<bullet> Tribal subsistence loss;
<bullet> Gear loss or damage; and
<bullet> Lost fishing income in Gulf of Maine wind energy lease
areas.
The Fisheries Compensatory Mitigation Fund will assist Tribal
subsistence fishing, commercial fisheries, and for-hire recreational
fisheries directly impacted by Tribal subsistence, income, or gear
losses due to offshore wind activities on offshore wind leases or
easements and is intended to address the impacts identified in BOEM's
environmental and project reviews. The compensatory mitigation must
cover impacts to Tribal subsistence fishing, commercial fisheries, and
for-hire recreational fisheries that result directly from the
preconstruction, construction, operations, and decommissioning of an
offshore wind project being developed in the Gulf of Maine wind energy
leases or easements. The fund must be established and the Contribution
made before the lessee submits the lease's first FDR or before the
fifth lease anniversary, whichever is sooner. To qualify for this
credit, the bidder must commit to the bidding credit requirements on
the BFF and submit a Conceptual Strategy as described in the BFF
Addendum.
Bidders applying for the Fisheries Compensatory Mitigation Fund
bidding credit must submit their Conceptual Strategy along with their
BFF, further described below and in the BFF Addendum. The Conceptual
Strategy would certify the actions that the lessee intends to take
would allow BOEM to verify compliance when the lessee seeks to
demonstrate satisfaction of the requirements for the bidding credit.
The lessee will be required to provide documentation showing that the
lessee has met the commitment and complied with the applicable bidding
credit requirements before the lessee submits the lease's first FDR or
before the fifth lease anniversary, whichever is sooner.
The fund must compensate Tribal subsistence fishers, commercial
fishers, and for-hire recreational fishers for gear loss or damage, as
well as any income loss claims, and Tribal subsistence loss 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
that have been determined to be in excess of those needed to compensate
for gear loss or damage, income loss for commercial fisheries and for-
hire recreational fishing, and Tribal subsistence fishing loss as a
result of lease development, based on actuarial accounting, may be used
to:
<bullet> support regional fisheries compensatory mitigation efforts
for other Gulf of Maine and Atlantic OCS offshore wind projects,
[[Page 76145]]
<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 project development process or other programs that better enable
the fishing and offshore wind industries to co-exist.
Any fund established or selected by the lessee to meet this bidding
credit requirement must include a process for evaluating the actuarial
status of funds at least every 5 years and publicly reporting
information on fund disbursement and administrative costs at least
annually.
The Fisheries Compensatory Mitigation Fund must be independently
managed by a third party and must include trustees or board members
from fishing stakeholder groups. The Fund must include fiduciary
governance and strong internal controls, and must minimize
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 Guidelines for
Mitigating Impacts to Commercial and Recreational Fisheries on the
Outer Continental Shelf, the Eleven Atlantic States' Fisheries
Mitigation Project, or other sources.
i. 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 full Contribution before it submits the lease's
first FDR or before the fifth lease anniversary, whichever is sooner.
The documentation must enable BOEM to objectively verify the
Contribution has met all applicable requirements as outlined in
Addendum C of the lease.
ii. At a minimum, this documentation must include:
(1) the procedures established to compensate for gear loss or
damage resulting from all phases of the project development on the
Lease (pre-construction, construction, operation, and decommissioning);
(2) the procedures established to compensate for income loss to
commercial fisheries and for-hire recreational fisheries resulting from
all phases of the project development on the Lease (pre-construction,
construction, operation, and decommissioning);
(3) the procedures established to compensate for Tribal subsistence
fishing loss resulting from all phases of the project development on
the Lease (pre-construction, construction, operation, and
decommissioning);
(4) 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 wind development;
(5) all receipts documenting the amount, date, financial
institution, and the account and owner of the account to which the
Contribution was made; and
(6) sworn statements by the entity that made the Contribution,
attesting to:
i. the amount and date(s) of the Contribution;
ii. that the Contribution is being (or will be) used in accordance
with the bidding credit requirements in the lease; and
iii. that all information provided is true and accurate.
The documentation must contain any information specified in the
Conceptual Strategy that was submitted with the BFF. If the lessee's
implementation of its Conceptual Strategy changes due to market needs
or other factors, the lessee must explain this change. BOEM reserves
the right to determine that the bidding credit has not been satisfied
if changes from the lessee's Conceptual Strategy result in the lessee
not meeting the criteria for the bidding credit described in Addendum C
of the lease.
iii. Enforcement: The commitment to the Fisheries Compensatory
Mitigation Fund Bidding Credit will be made in the BFF. It will be
included in Addendum C of the lease and will bind the lessee and all
future assignees of the lease. If BOEM were to determine that a lessee
or assignee had failed to satisfy the commitment at the time the first
FDR is submitted, or by the fifth lease anniversary, whichever is
sooner, the amount corresponding to the bidding credit awarded will be
immediately due and payable to ONRR with interest from the lease
effective date. The interest rate would be the underpayment interest
rate identified by ONRR. The lessee would not be required to pay said
amount if the lessee satisfied its bidding credit requirements by the
time the first FDR is submitted, or the fifth lease anniversary,
whichever is sooner. BOEM may, at its sole discretion, extend the
documentation deadline beyond the first FDR or beyond the fifth lease
anniversary.
XIII. Rejection or Non-Acceptance of Bids
BOEM reserves the right and authority to reject any and all bids
that do not satisfy the requirements and rules of the auction, the FSN,
or applicable regulations and statutes.
XIV. Anti-Competitive Review
Bidding behavior in this sale is subject to Federal antitrust laws.
Following the auction, but before the acceptance of bids and the
issuance of the lease, BOEM must ``allow the Attorney General, in
consultation with the Federal Trade Commission, thirty days to review
the results of [the] lease sale.'' 43 U.S.C. 1337(c)(1). If a
provisional winner is found to have engaged in anti-competitive
behavior in connection with this lease sale, BOEM may reject its
provisionally winning bid. Compliance with BOEM's auction procedures
and regulations is not an absolute defense against violations of
antitrust laws.
Anti-competitive behavior determinations are fact specific.
However, such behavior may manifest itself in several different ways,
including, but not limited to:
1. an express or tacit agreement among bidders not to bid in an
auction, or to bid a particular price;
2. an agreement among bidders not to bid against each other; or
3. other agreements among bidders that have the potential to affect
the final auction price.
Pursuant to 43 U.S.C. 1337(c)(3), BOEM may decline to award a lease
if the Attorney General, in consultation with the Federal Trade
Commission, determines that awarding the lease may be inconsistent with
antitrust laws.
For more information on whether specific communications or
agreements could constitute a violation of Federal antitrust law,
please see <a href="https://www.justice.gov/atr">https://www.justice.gov/atr</a> and consult legal counsel.
XV. Process for Issuing the Lease
Once all post-auction reviews have been completed to BOEM's
satisfaction, BOEM will provide an unsigned copy of the lease to the
provisional winner in accordance with 30 CFR 585.225. Within 10
business days after receipt of the unsigned copy, the provisional
winner must:
1. execute the lease and return it to BOEM;
2. file financial assurance as required under 30 CFR 585.516
through 585.529, as applicable; and
3. pay by electronic funds transfer (EFT) the balance owed (the
winning cash bid less the applicable bid deposit), if any. BOEM
requires bidders to use EFT procedures (not <a href="https://www.pay.gov">https://www.pay.gov</a>, the
website bidders used to submit bid deposits) for payment of the
balance, following the detailed
[[Page 76146]]
instructions contained in the ``Instructions for Making Electronic
Payments'' available on BOEM's website at <a href="https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/EFT-Payment-Instructions.pdf">https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/EFT-Payment-Instructions.pdf</a>.
BOEM will not execute the lease until all three requirements above
have been satisfied, the provisional winner has established financial
assurance pursuant to 30 CFR 585.516 and 585.225, and BOEM has
processed the provisional winner's payment. BOEM, at its discretion,
may extend the 10-business-day deadline for executing a lease, filing
the required financial assurance, and paying the balance owed, pursuant
to 30 CFR 585.225(d).
If the provisional winner does not meet these requirements or
otherwise fails to comply with applicable regulations or the terms of
the FSN, BOEM reserves the right to not issue the lease to that bidder.
In such a case, the provisional winner will forfeit its bid deposit.
Also, in such a case, BOEM reserves the right to offer the lease to the
next highest eligible bidder as determined by BOEM.
Within 45 calendar days after receiving a copy of the executed
lease from BOEM, the provisional winner must pay the first 12 months'
rent using the ``ONRR Renewable Energy Initial Rental Payments'' form
available at: <a href="https://www.pay.gov/public/form/start/27797604">https://www.pay.gov/public/form/start/27797604</a>.
Subsequent annual rent payments must be made following the detailed
instructions available on ONRR's website at: <a href="https://onrr.gov/paying/payment-options?tabs=rent-payments">https://onrr.gov/paying/payment-options?tabs=rent-payments</a>.
XVI. Non-Procurement Debarment and Suspension Regulations
Pursuant to 43 CFR part 42, subpart C, an OCS renewable energy
lessee must comply with the Department of the Interior's non-
procurement debarment and suspension regulations at 2 CFR parts 180 and
1400. The lessee must also communicate this requirement to persons with
whom the lessee does business relating to this lease by including this
requirement as a term or condition in their contracts and other
transactions.
XVIII. Changes to Auction Details
BOEM has the discretion to change any auction detail specified in
this FSN, including the date and time, if events outside BOEM's control
have been found to interfere with a fair and proper lease sale. Such
events may include, but are not limited to, natural disasters (e.g.,
earthquakes, hurricanes, floods, and blizzards), wars, riots, act of
terrorism, fire, strikes, civil disorder, Federal Government shutdowns,
cyberattacks against relevant information systems, or other events of a
similar nature. In case of such events, BOEM will notify all qualified
bidders via email, phone, and BOEM's website at <a href="https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine">https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine</a>. Bidders should call
BOEM's Auction Manager at (703) 787-1121 if they have concerns.
XIX. Withdrawal of Blocks
As provided in BOEM's regulations at 30 CFR 585.224(e), BOEM may
withdraw all or part of a lease area from the lease sale between
auction closure and lease execution. In the event that a portion of the
lease area is withdrawn, the provisional winner has the option to
refuse the lease without penalty, to propose new lease terms for BOEM's
concurrence, or to accept the lease with the reduced area.
XX. Appeals
Procedures for reconsideration of rejected bids are provided in
BOEM's regulations at 30 CFR 585.224 and 585.118(c). BOEM's decision on
a bid is the final action of the Department of the Interior, and is not
subject to appeals to the Office of Hearings and Appeals, but an
unsuccessful bidder may appeal that decision to the BOEM Director as
provided by 30 CFR 585.118(c).
XXI. Protection of Privileged and Confidential Information
BOEM will protect privileged or confidential information that the
lessee submits, as authorized by the Freedom of Information Act (FOIA),
BOEM's regulations at 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 the 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.
Authority: 43 U.S.C. 1337(p); 30 CFR 585.210 and 585.214.
Elizabeth Klein,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2024-21081 Filed 9-16-24; 8:45 am]
BILLING CODE 4340-98-P
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</html>Indexed from Federal Register on September 17, 2024.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.