Atlantic Wind Lease Sale 5 (ATLW5) for Commercial Leasing for Wind Power on the Outer Continental Shelf Offshore New Jersey-Final Sale Notice, 57862-57872 [2015-24392]

Agencies

• DEPARTMENT OF THE INTERIOR
• Bureau of Ocean Energy Management

[Federal Register Volume 80, Number 186 (Friday, September 25, 2015)]
[Notices]
[Pages 57862-57872]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-24392]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2015-0080; MMAA104000]


Atlantic Wind Lease Sale 5 (ATLW5) for Commercial Leasing for 
Wind Power on the Outer Continental Shelf Offshore New Jersey--Final 
Sale Notice

AGENCY: Bureau of Ocean Energy Management (BOEM or ``the Bureau''), 
Interior.

ACTION: Final Sale Notice for Commercial Leasing for Wind Power on the 
Outer Continental Shelf Offshore New Jersey.

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SUMMARY: This document is the Final Sale Notice (FSN) for the sale of 
two commercial wind energy leases on the Outer Continental Shelf (OCS) 
offshore

[[Page 57863]]

New Jersey, pursuant to BOEM's regulations at 30 CFR 585.216. BOEM is 
offering two leases for sale using a multiple-factor auction format: 
Lease OCS-A 0498 and Lease OCS-A 0499. The two lease areas (LAs) are 
identical to those announced in the Proposed Sale Notice (PSN) for 
Commercial Leasing for Wind Power on the Outer Continental Shelf (OCS) 
Offshore New Jersey that was published in the Federal Register on July 
21, 2014, with a 60-day public comment period (79 FR 42361). This FSN 
contains information pertaining to the areas available for leasing, 
proposed lease provisions and conditions, auction details, lease form, 
criteria for evaluating competing bids, award procedures, appeal 
procedures, and lease execution. The issuance of the proposed leases 
resulting from this sale would not constitute an approval of project-
specific plans to develop offshore wind energy. Such plans, expected to 
be submitted by auction winners, will be subject to subsequent 
environmental and technical reviews prior to a decision to proceed with 
development.

DATES: BOEM will hold a mock auction for the qualified bidders on 
November 4, 2015. The monetary auction will be held online and will 
begin at 9:00 a.m. Eastern Time (ET) on November 9, 2015. Additional 
details are provided in the section entitled ``Deadlines and Milestones 
for Bidders.''

FOR FURTHER INFORMATION CONTACT: Will Waskes, BOEM Office of Renewable 
Energy Programs, 45600 Woodland Road, VAM-OREP, Sterling, Virginia, 
20166, (703) 787-1320 or Will.Waskes@boem.gov.

SUPPLEMENTARY INFORMATION:

Authority

    This FSN is published pursuant to subsection 8(p) of the OCS Lands 
Act (43 U.S.C. 1337(p)) (OCSLA), as amended by section 388 of the 
Energy Policy Act of 2005 (EPAct), and the implementing regulations at 
30 CFR part 585, including 30 CFR 585.211 and 585.216.

Background

    The two LAs offered in this FSN are the same areas BOEM announced 
in the PSN on July 21, 2014 (79 FR 42361). BOEM received 24 comment 
submissions in response to the PSN, which are available in the Federal 
Register docket (Docket ID: BOEM-2014-0029) through BOEM's Web site at: 
https://www.boem.gov/New-Jersey/. BOEM also has posted a document 
containing responses to comments submitted during the PSN comment 
period and a list of other changes that BOEM has implemented for this 
lease sale since publication of the PSN. This document, entitled 
Response to Comments and Explanation of Changes, can be found at the 
following URL: https://www.boem.gov/New-Jersey/.
    On February 3, 2012, BOEM published the Notice of Availability 
(NOA) (77 FR 5560) for the final Environmental Assessment (EA) and 
Finding of No Significant Impact (FONSI) for commercial wind lease 
issuance and site assessment activities on the Atlantic OCS offshore 
New Jersey, Delaware, Maryland, and Virginia, pursuant to the National 
Environmental Policy Act. Consultations ran concurrently with the 
preparation of the EA and included consultation under the Endangered 
Species Act (ESA), Magnuson-Stevens Fishery Conservation and Management 
Act (MSFCMA), section 106 of the National Historic Preservation Act 
(NHPA), and the Coastal Zone Management Act (CZMA). The proposed lease 
areas identified in this FSN have been reduced from the areas described 
in the Call and the New Jersey Wind Energy Area (WEA) described in the 
EA, but are the same as the areas described in the PSN (79 FR 42361). 
An explanation regarding the reduction in the area is provided in the 
section entitled ``Area Offered for Leasing'' of the New Jersey PSN 
published on July 21, 2014 (79 FR 42361). The Commercial Wind Lease 
Issuance and Site Characterization Activities on the Atlantic Outer 
Continental Shelf Offshore New Jersey, Delaware, Maryland, and Virginia 
Final Environmental Assessment can be found at: https://www.boem.gov/uploadedFiles/BOEM/Renewable_Energy_Program/Smart_from_the_Start/Mid-Atlantic_Final_EA_012012.pdf.
    On October 19, 2012, BOEM initiated consultation with the National 
Marine Fisheries Service (NMFS) under the ESA for geological and 
geophysical (G&G) activities in support of renewable energy development 
offshore New Jersey, New York, Massachusetts, and Rhode Island. Formal 
consultation concluded on April 10, 2013, with receipt of a Biological 
Opinion that, along with the previous informal consultation, informed 
the development of the New Jersey commercial wind lease package. 
Additional environmental reviews will be prepared upon receipt of the 
lessees' proposed project plans, such as a Site Assessment Plan (SAP) 
or Construction and Operations Plan (COP).

Other Activities Under BOEM's Jurisdiction

    Potential bidders should be aware of the following unsolicited 
request for a right-of-way (ROW) grant, and two limited leases issued 
by BOEM within the New Jersey WEA.
    Atlantic Grid Holdings LLC (AGH) Right-of-Way Grant Request: On 
March 31, 2011, Atlantic Grid Holdings LLC submitted an unsolicited 
application for a ROW grant. Following publication of a notice to 
determine competitive interest in the grant area and a 60-day public 
comment period, BOEM published a determination of no competitive 
interest on May 15, 2012 (77 FR 28620). The application and associated 
notices can be found at: https://www.boem.gov/Regional-Proposals/. On 
May 1, 2013, Atlantic Grid Holdings LLC submitted a supplement to their 
application which can found at the web address above. On December 13, 
2013, at the request of AGH, BOEM granted a departure under BOEM's 
regulations at 30 CFR 585.103(a) extending the filing date for the 
General Activities Plan (GAP) until December 31, 2014. On June 2, 2014, 
AGH informed BOEM of a new phased development schedule. Phase 1 would 
consist of the installation of a point-to-point transmission system 
that would not support the production, transmission, or transportation 
of energy from sources other than oil and gas. On December 22, 2014, 
BOEM suspended the current application process and informed AGH that 
Phase 1 no longer falls under BOEM's jurisdiction and does not require 
an OCS lease, easement or ROW grant pursuant to subsection 8(p) of the 
OCS Lands Act prior to AGH moving forward with Phase I. Should AGH 
proceed with future phases that support the production, transmission, 
or transportation of energy from sources other than oil and gas, AGH 
will need to reinitiate the renewable energy regulatory process 
pursuant to 30 CFR part 585.
    Interim Policy Leases: On November 1, 2009, BOEM issued two Interim 
Policy leases within the New Jersey WEA authorizing the construction, 
installation, and operation of meteorological towers or buoys for a 
term of five years. The location of each lease, the name of each lease 
holder, and each lease number are listed below.

[[Page 57864]]



----------------------------------------------------------------------------------------------------------------
            Lease No.                    Lessee          Protraction No.      Block No.          Sub-block
----------------------------------------------------------------------------------------------------------------
OCS-A 0472......................  Deepwater Wind LLC.  Wilmington NJ18-02            7033  All.
OCS-A 0473......................  Fishermen's Energy   Wilmington NJ18-02            6931  H,K,L,N,O,P.
                                   LLC.
----------------------------------------------------------------------------------------------------------------

    These leases did not confer a right to develop a commercial 
offshore wind project. Rather, the leases granted the exclusive right 
to conduct the activities described in each lease, which were limited 
to installing and operating facilities to characterize wind and 
environmental resources. These leases expired on November 1, 2014; BOEM 
requires all facilities to be removed by November 1, 2015. Electronic 
copies of the executed leases can be found at: https://www.boem.gov/Renewable-Energy-Interim-Policy/. BOEM anticipates that both lease 
areas will be cleared prior to the New Jersey lease sale.
    List of Qualified Bidders: BOEM has determined that the following 
companies are legally, technically, and financially qualified to hold a 
commercial wind lease offshore New Jersey pursuant to 30 CFR 585.106 
and 107, and therefore may participate in this lease sale as bidders, 
subject to meeting the bid deposit requirements and other requirements 
described in this notice.

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                      Company name                          Company No.
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Convalt Energy LLC......................................           15051
GSOE I, LLC.............................................           15009
EDF Renewable Development, Inc..........................           15027
Energy Management, Inc..................................           15015
Fishermen's Energy, LLC.................................           15005
Green Sail Energy LLC...................................           15045
IBERDROLA RENEWABLES, Inc...............................           15019
New Jersey Offshore Wind, LLC...........................           15030
Offshore MW LLC.........................................           15010
RES America Developments Inc............................           15021
Sea Breeze Energy LLC...................................           15044
US Mainstream Renewable Power (Offshore) Inc............           15029
US Wind Inc.............................................           15023
------------------------------------------------------------------------

    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 leases pursuant to this sale. These are 
organized into three stages: (1) The FSN waiting period; (2) conducting 
the Auction; and (3) from the Auction to Lease execution.
    1. FSN Waiting Period. During this period, qualified bidders must 
take several steps before participating in the Auction.
     Bidder's Financial Form (BFF): BOEM must receive each 
qualified bidder's BFF by October 6, 2015. BOEM will consider 
extensions to this deadline only if BOEM determines that the failure to 
timely submit the BFF was caused by events beyond the bidder's control. 
The BFF is available at: https://www.boem.gov/New-Jersey/. Once the BFF 
has been processed, bidders may log into pay.gov and submit bid 
deposits. BOEM will only accept an originally executed paper copy of 
the BFF, and will not consider any BFFs submitted by qualified bidders 
for previous lease sales for the purposes of this auction. The BFF must 
be executed by an authorized representative as shown on the bidder's 
legal qualifications. Each bidder is required to sign the self-
certification in the BFF, in accordance with 18 U.S.C. 1001 (Fraud and 
False Statements).
     Bid Deposits: Each bidder must submit a bid deposit of 
$450,000 by October 20, 2015. BOEM will consider extensions to this 
deadline only if BOEM determines that the failure to timely submit the 
bid deposit was caused by events beyond the bidder's control.
     Non-Monetary Package: For bidders applying for a credit as 
described in the ``Auction Procedures: Credit Factors'' section of this 
notice, BOEM must receive those bidders' non-monetary packages' by 
October 20, 2015. Non-monetary packages must be submitted in both paper 
and electronic formats. BOEM considers an Adobe Portable Document 
Format (pdf) file stored on electronic media (e.g., flash drive) to be 
an acceptable format.
    Further information on non-monetary packages can be found in the 
section of this notice entitled ``Credit Factor Definitions.'' If BOEM 
does not receive a bidder's non-monetary package by October 20, 2015, 
BOEM will assume that the bidder is not seeking a non-monetary auction 
credit and the BOEM panel responsible for determining bidder 
eligibility for the credit will not consider that bidder for a non-
monetary auction credit.
     Mock Auction: BOEM will hold a Mock Auction on November 4, 
2015. The Mock Auction will be held online. Only qualified bidders who 
have met the requirements and deadlines for auction participation, 
including submission of bid deposits, will be permitted to participate 
in the Mock Auction. BOEM will contact each qualified bidder and 
provide instructions for participation.
    2. Conduct the Auction: BOEM, through its contractor, will hold an 
auction as described in this notice.
     Panel Convenes to Evaluate Non-Monetary Packages: On 
November 5, 2015, the panel described in the ``Auction Procedures'' 
section will convene to consider non-monetary packages. The panel will 
send determinations of eligibility to BOEM, which will inform each 
bidder by email whether it qualifies for a non-monetary credit.
     Monetary Auction: On November 9, 2015, BOEM, through its 
contractor, will hold the monetary stage of the auction. The auction 
will start at 9:00 a.m. ET. The auction will proceed electronically 
according to a schedule to be distributed by the BOEM Auction Manager 
at the time of the auction. If the auction does not conclude by the end 
of the day on November 9, BOEM will continue the auction on a schedule 
that will be communicated during the auction through the auction 
messaging and scheduling functions of the auction

[[Page 57865]]

platform. BOEM anticipates that this means continuing the auction on 
consecutive business days, as necessary, until the auction ends 
according to the procedures described in the ``Auction Procedures'' 
section of this notice.
     Announce Provisional Winner: BOEM will announce the 
provisional winners of the lease sale after the auction ends.
     Reconvene the Panel: The panel will reconvene to verify 
auction results.
    3. From Auction to Lease Execution. There are several steps between 
the conclusion of the auction and execution of leases.
     Bid Deposit Refund: Once provisional winners have been 
announced and the panel has verified the auction results, BOEM will 
return bid deposits to non-winning bidders and provide a written 
explanation of why non-winning bidders did not win. BOEM will also 
return to winners the excess of any bid deposits over the cash portion 
of their wining bids.
     Department of Justice (DOJ) Review: BOEM will allow the 
Department of Justice (DOJ) 30 days in which to conduct an antitrust 
review of the auction in consultation with the Federal Trade 
Commission, pursuant to 43 U.S.C. 1337(c).
     Delivery of Leases: BOEM will send three lease copies to 
each winner, with instructions on how to execute the leases. The first 
year's rent is due 45 days after the winner receives the lease copies 
for execution.
     Return the Leases: Within 10 business days of receiving 
the lease copies, the auction winners must post financial assurance, 
pay any outstanding balance of their bonus bids (i.e., winning monetary 
bids minus applicable non-monetary credits and bid deposits), and sign 
and return the three executed lease copies.
     Execution of Leases: Once BOEM has received the lease 
copies and verified that all required materials have been received, 
BOEM will execute the leases if appropriate.
    Areas Offered For Leasing: The area available for sale will be 
auctioned as two leases, Lease OCS-A 0498 [South Lease Area (South LA)] 
and Lease OCS-A 0499 [North Lease Area (North LA)]. The South LA 
consists of 160,480 acres and the North LA consists of 183,353 acres. 
The total area is approximately 343,833 acres. If there are adequate 
bids, two leases will be issued pursuant to this lease sale. A 
description of the lease areas can be found in Addendum ``A'' of the 
proposed leases, which BOEM has made available with this notice on its 
Web site at: https://www.boem.gov/New-Jersey/.

Map of the Areas Offered for Leasing

    A map of the North and South LAs, GIS spatial files, and a table of 
the boundary coordinates in X, Y (eastings, northings) UTM Zone 18, 
NAD83 Datum, and geographic X, Y (longitude, latitude), NAD83 Datum can 
be found on BOEM's Web site at: https://www.boem.gov/New-Jersey/.
    A large scale map of these areas, showing boundaries of the area 
with numbered blocks, is available from BOEM upon request at the 
following address: Bureau of Ocean Energy Management, Office of 
Renewable Energy Programs, 45600 Woodland Road, VAM-OREP, Sterling, 
Virginia, 20166, Phone: (703) 787-1300, Fax: (703) 787-1708.

Potential Future Restrictions To Minimize Conflicts With Vessel Traffic

    Prospective bidders should note that certain sub-blocks (or 
portions thereof) in the North and South LAs may not be available for 
future development (i.e., installation of wind facilities) because of 
navigational safety concerns. Reductions or limitations to development 
in the North or South LAs, if any, will be determined at the COP stage, 
once BOEM and USCG have reviewed the Lessee's site-specific 
navigational risk assessment.
    First, at the New Jersey Intergovernmental Task Force meeting on 
December 18, 2012, the United States Coast Guard (USCG) presented an 
analysis of tug, towing and barge traffic that currently transits 
through the New Jersey WEA. USCG's presentation discussed potential 
safety implications and possible changes in traffic patterns to the 
extent that vessels reroute around the New Jersey WEA once development 
occurs. USCG identified the OCS Blocks listed in Table 1 as blocks of 
highest concern. These blocks represent 6.8% of the South LA.

                         Table 1--South Leasing Area: Blocks of Primary Concern to USCG
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                                                  Protraction
               Protraction name                       No.          Block No.                Sub-block
----------------------------------------------------------------------------------------------------------------
Wilmington....................................         NJ18-02            7080  All Sub-Blocks.
Wilmington....................................         NJ18-02            7030  B,C,D,E,F,G,H,I,J,K,L,M,N,O,P.
----------------------------------------------------------------------------------------------------------------

    Additionally, during the New Jersey PSN comment period, BOEM 
received comments from the American Waterways Operators (AWO) 
expressing concern that the western boundary of the New Jersey WEA does 
not allow for a sufficiently wide two-way near-shore corridor for tug 
and barge vessels to navigate safely. AWO has argued that tug and barge 
vessels would have a sufficiently wide near-shore corridor along the 
New Jersey coast if the OCS Blocks listed in Tables 2 and 3 were not 
developed. These blocks represent 6.6% of the North LA and 15.7% of the 
South LA, and there is some overlap with the OCS Blocks identified in 
Table 1 above.

                              Table 2--North Leasing Area: Blocks of Concern to AWO
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                                   Protraction
        Protraction name               No.          Block No.           Sub-block              Leasing area
----------------------------------------------------------------------------------------------------------------
Wilmington.....................         NJ18-02            6389  C,D,G,H,K,L,O,P........  North.
Wilmington.....................         NJ18-02            6438  D,G,H,K,L,O............  North.
Wilmington.....................         NJ18-02            6439  A,B,E,I................  North.
Wilmington.....................         NJ18-02            6488  A,B,E,I,M..............  North.
Wilmington.....................         NJ18-02            6636  C,D,G,H................  North.
Wilmington.....................         NJ18-02            6735  C,D,G,H,K..............  North.
Wilmington.....................         NJ18-02            6784  K,L,O..................  North.
----------------------------------------------------------------------------------------------------------------


[[Page 57866]]


                              Table 3--South Leasing Area: Blocks of Concern to AWO
----------------------------------------------------------------------------------------------------------------
                                   Protraction
        Protraction name               No.          Block No.            Sub-block              Leasing area
----------------------------------------------------------------------------------------------------------------
Wilmington.....................         NJ18-02            6833  C,D,F,G,H,I,J,K,L,M,N,O  South.
                                                                  ,P.
Wilmington.....................         NJ18-02            6834  I......................  South.
Wilmington.....................         NJ18-02            6883  A,B,E,F,I,J............  South.
Wilmington.....................         NJ18-02            6932  A,B,C,D,E,F,G,H........  South.
Wilmington.....................         NJ18-02            6931  H,K,L,N,O,P............  South.
 Wilmington....................         NJ18-02            6982  I,J,M..................  South.
Wilmington.....................         NJ18-02            7030  B,C,D,E,F,G,H,I,J,K,L,M  South.
                                                                  ,N,O,P.
 Wilmington....................         NJ18-02            7031  I,J,M,N................  South.
 Wilmington....................         NJ18-02            7080  A,B,C,D,E,F,G,H,I,J,K,M  South.
                                                                  ,N.
Wilmington.....................         NJ18-02            7081  A,B,E..................  South.
----------------------------------------------------------------------------------------------------------------

    Maps identifying these blocks and sub-blocks are available on 
BOEM's Web site at: https://www.boem.gov/New-Jersey/.

Potential Future Restrictions To Minimize Conflicts With Active 
Undersea Cables

    Potential bidders should note that certain sub-blocks (or portions 
thereof) in the North LA may not be available for future development 
(i.e., installation of wind facilities) because of the presence of 
active subsea cables.
    The U.S. Department of State has identified four active subsea 
cables that are present in the North LA. BOEM has not determined the 
degree to which subsea cables will interfere with offshore wind 
facility operations or the associated infrastructure, but believes it 
is prudent to make potential lessees aware of potential conflicts and 
provide them with guidance on how such conflicts can be addressed. To 
this end, BOEM is presently revising its COP guidelines to include 
recommendations for engaging and coordinating with owners and operators 
of existing telecommunications cables. BOEM will determine at the COP 
stage if any site-specific mitigation is needed for the New Jersey LAs, 
once it has more detailed information.
    Table 4 lists the sub-blocks where the active cables are present. 
These sub-blocks represent 6.41% of the North LA. Maps identifying 
these whole blocks and sub-blocks are available on BOEM's Web site at: 
https://www.boem.gov/New-Jersey/.

                      Table 4--North Leasing Area: Blocks Traversed by Active Subsea Cables
----------------------------------------------------------------------------------------------------------------
                                                  Protraction
               Protraction name                       No.          Block No.                Sub-block
----------------------------------------------------------------------------------------------------------------
Wilmington....................................         NJ18-02            6438  O.
Wilmington....................................         NJ18-02            6488  C,D.
Wilmington....................................         NJ18-02            6489  A,B,C,D.
Wilmington....................................         NJ18-02            6588  A,B,C,D,F,G,H.
Wilmington....................................         NJ18-02            6539  I,J,K,M,N,O,P.
Wilmington....................................         NJ18-02            6589  A,B,C,D,E,F,G,H,I,J,K,L.
----------------------------------------------------------------------------------------------------------------

Potential Future Restrictions To Minimize Conflicts With Commercial 
Fishing Grounds

    BOEM received comments in response to the PSN regarding potential 
conflicts with commercial fishing grounds in the proposed leasing 
areas. Although BOEM is retaining these fishing areas in the LAs, 
potential bidders should be aware that BOEM will be gathering 
additional data and may develop mitigation measures to minimize 
impacts. BOEM has completed preliminary work with NMFS Northeast 
Fisheries Science Center to characterize fishing activity in BOEM's 
wind energy areas. Results for the New Jersey LAs indicate the 
potential for economic impacts, particularly to those vessels 
conducting dredge activities for surf clams and ocean quahog. BOEM will 
encourage the sale winners to participate in discussions that the 
Bureau will hold with NMFS, the Mid-Atlantic Fisheries Management 
Council, the Mid-Atlantic Regional Council on the Ocean, and other 
interested stakeholders to further characterize fishing activity 
offshore New Jersey and develop site-specific best management practices 
as lease activities progress. These discussions may result in 
mitigation measures in key fishing grounds to offset impacts to 
fishermen using the area.
    BOEM also received comments from the fishing industry in response 
to the PSN recommending that its New Jersey leases stipulate that 
lessees must hire a fisheries liaison to reduce potential multiple use 
conflicts. BOEM's 2007 Record of Decision (ROD) for the OCS Alternative 
Energy and Alternate Use Program adopted a series of best management 
practices (BMPs), one of which states that ``lessees and grantees shall 
work cooperatively with commercial/recreational fishing entities and 
interests to ensure that the construction and operation of a project 
will minimize potential conflicts with commercial and recreational 
fishing interests.'' The ROD also states that BOEM may choose to 
incorporate one or more of its identified BMPs into its leases as 
required stipulations.
    Between 2012 and 2014, BOEM collaborated with numerous stakeholders 
in the fishing and offshore wind industries to develop additional BMPs 
in furtherance of its goal of eliminating/minimizing potential multiple 
use conflicts between offshore renewable energy developers and the 
fishing industry. As a result of this effort, BOEM concluded that it 
would be beneficial for a lessee to utilize both a fisheries liaison 
and fisheries representative during the lessee's plan development 
process. Therefore, BOEM recommends that lessees utilize a fisheries 
liaison and fisheries representative during the development of their 
plans to facilitate cooperation with the fishing industry. However, 
given the benefits of preserving lessee flexibility and the lack of 
project-specific information available at this juncture, BOEM is not 
including stipulations requiring the use of a

[[Page 57867]]

fisheries liaison in the leases to be offered in its New Jersey lease 
sale.
    Withdrawal of Blocks: BOEM reserves the right to withdraw portions 
of the LAs prior to its execution of a lease based upon relevant 
information provided to the Bureau.
    Lease Terms and Conditions: BOEM has included specific terms, 
conditions, and stipulations for the OCS commercial wind leases to be 
offered through this sale. BOEM will require compliance with additional 
terms and conditions associated with approval of a SAP or COP as 
necessary. Each lease is available on BOEM's Web site at: https://www.boem.gov/New-Jersey/. Each lease includes the following seven 
attachments:
     Addendum ``A'' (Description of Leased Area and Lease 
Activities);
     Addendum ``B'' (Lease Term and Financial Schedule);
     Addendum ``C'' (Lease Specific Terms, Conditions, and 
Stipulations);
     Addendum ``D'' (Project Easement);
     Addendum ``E'' (Rent Schedule);
     Appendix A to Addendum C: (Incident Report: Protected 
Species Injury or Mortality); and
     Appendix B to Addendum C: (Required Data Elements for 
Protected Species Observer Reports).

Addenda ``A'', ``B'', and ``C'' provide detailed descriptions of lease 
terms and conditions. Addenda ``D'' and ``E'' will be completed at the 
time of COP approval or approval with modifications.
    The most recent version of BOEM's renewable energy commercial lease 
form (BOEM-0008) is available on BOEM's Web site at: https://www.boem.gov/BOEM-OCS-Operation-Forms/.
    Plans: Pursuant to 30 CFR 585.601, the leaseholder must submit a 
SAP within 12 months of lease issuance. If the leaseholder intends to 
continue its commercial lease with an operations term, the leaseholder 
must submit a COP at least 6 months before the end of the site 
assessment term.
    BOEM is aware that long-term electrical offtake mechanisms (e.g., 
power purchase agreements (PPAs), offshore renewable energy 
certificates (ORECs)) are a critical component to providing revenue 
certainty and attracting financing for commercial offshore wind 
projects. BOEM may consider a lessee's progress in obtaining such 
mechanisms when evaluating requests for additional time to extend the 
preliminary or site assessment term of their commercial lease pursuant 
to 30 CFR 585.235(b).
    Lease Renewals: Pursuant to 30 CFR 585.425, a lessee may obtain a 
renewal of the operations term of its lease before the lease 
terminates. BOEM is aware that lessees may wish to build out their LA 
in phases due to their size, and that lessees may propose to construct 
and operate one or more phases after significant portions of the 
operations terms have lapsed. BOEM will consider a lessee's proposed 
plans and progress in completing secondary phases when reviewing a 
lessee's renewal request.
    Financial Terms and Conditions: This section provides an overview 
of the annual payments and financial assurance that each lessee must 
provide.
    Rent: The first year's rent payment of $3 per acre is due within 45 
days of the date the lessee receives the lease for execution. 
Thereafter, annual rent payments are due on the anniversary of the 
Effective Date of the lease (the ``Lease Anniversary''). Once the first 
commercial operations under the lease begin, BOEM will charge rent only 
for the portions of the lease not authorized for commercial operations, 
i.e., not generating electricity. However, instead of geographically 
dividing the LA into acreage that is ``generating'' and acreage that is 
``non-generating,'' the fraction of the lease accruing rent will be 
based on the fraction of the total nameplate capacity of the project 
that is not yet in operation. This fraction is calculated by dividing 
the nameplate capacity not yet authorized for commercial operations at 
the time payment is due by the anticipated nameplate capacity after 
full installation of the project (as described in the COP). The annual 
rent due for a given year is then derived by multiplying this fraction 
by the amount of rent that would have been due for the lessee's entire 
LA at the rental rate of $3 per acre.
    For example, for an 183,353 acre lease (the size of the entire 
North LA), the rent payment will be $550,059 per year if no portion of 
the leased area is authorized for commercial operations. If 300 
megawatts (MW) of a project's nameplate capacity is operating (or 
authorized for operation), and its most recent approved COP specifies a 
maximum project size of 500 MW, the rent payment will be $220,024. This 
payment is based on the 200 MW of nameplate capacity BOEM has not yet 
authorized for commercial operations. For the above example, this would 
be calculated as follows: 200MW/500MW x ($3/acre x 183,353 acres) = 
$220,024.
    If the lessee submits an application for relinquishment of a 
portion of its lease area within the first 45 calendar days following 
the date that the lease is received by the lessee for execution, and 
BOEM approves that application, no rent payment will be due on that 
relinquished portion of the LA. Later relinquishments of any LA will 
reduce the lessee's rent payments starting in the year following BOEM's 
approval of the relinquishment.
    The lessee also must pay rent for any project easement associated 
with the lease, commencing on the date that BOEM approves the COP (or 
modification thereof) that describes the project easement. Annual rent 
for a project easement that is 200 feet wide and centered on the 
transmission cable is $70 per statute mile. For any additional acreage 
required, the lessee must also pay the greater of $5 per acre per year 
or $450 per year.

Operating Fee

    For purposes of calculating the initial annual operating fee 
payment and pursuant to 30 CFR 585.506, an operating fee rate is 
applied to a proxy for the wholesale market value of the electricity 
expected to be generated from the project during its first twelve 
months of operations. This initial payment will be prorated to reflect 
the period between the commencement of commercial operations and the 
Lease Anniversary. The initial annual operating fee payment is due 
within 45 days of the commencement of commercial operations. 
Thereafter, subsequent annual operating fee payments are due on or 
before each Lease Anniversary.
    The subsequent annual operating fee payments are calculated by 
multiplying the operating fee rate by the imputed wholesale market 
value of the projected annual electric power production. For the 
purposes of this calculation, the imputed market value is the product 
of the project's annual nameplate capacity, the total number of hours 
in the year (8,760), the capacity factor, and the annual average price 
of electricity derived from a historical regional wholesale power price 
index. For example, the annual operating fee for a 100 MW wind facility 
operating at a 40% capacity (i.e., capacity factor of 0.4) with a 
regional wholesale power price of $40/MWh and an operating fee rate of 
0.02 would be calculated as follows:

[[Page 57868]]

[GRAPHIC] [TIFF OMITTED] TN25SE15.014

    Operating Fee Rate: The operating fee rate is the share of imputed 
wholesale market value of the projected annual electric power 
production due to BOEM as an annual operating fee. For the LAs in this 
sale, this fee is set at 0.02 (i.e., 2%) during the entire life of 
commercial operations.
    Nameplate Capacity: Nameplate capacity is the maximum rated 
electric output, expressed in MW, that the turbines of the wind 
facility under commercial operations can produce at their rated wind 
speed as designated by the turbine's manufacturer. The lessee will 
specify in its COP the nameplate capacity applicable at the start of 
each year of commercial operations on the lease. For example, if the 
lessee has 20 turbines in commercial operation, and each is rated by 
the design manufacturer at 5 MW, the nameplate capacity of the wind 
facility would be 100 MW.
    Capacity Factor: The capacity factor compares the amount of energy 
delivered to the grid during a period of time to the amount of energy 
the wind facility would have produced at full capacity. The amount of 
power delivered will always be less than the theoretical 100% capacity, 
largely because of the variability of wind speeds, transmission line 
loss, and down time for maintenance or other purposes.
    The capacity factor is expressed as a decimal between zero and one, 
and represents the share of anticipated generation of the wind facility 
that is delivered to the interconnection grid (i.e., where the lessee's 
facility interconnects with the electric grid) relative to the wind 
facility's generation at continuous full power operation at nameplate 
capacity. BOEM has set the capacity factor for the year in which 
commercial operations commence and the six full years thereafter at 0.4 
(i.e., 40%). At the end of the sixth year, BOEM may adjust the capacity 
factor to reflect the performance over the previous five 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 five years thereafter. The maximum change in the 
capacity factor from one period to the next will be limited to plus or 
minus 10 percent of the previous period's value.
    Wholesale Power Price Index: Pursuant to 30 CFR 585.506(c)(2)(i), 
the wholesale power price, expressed in dollars per MW-hour, is 
determined at the time each annual operating fee payment is due, based 
on the weighted average of the inflation-adjusted peak and off-peak 
spot price indices for the PJM West power market for the most recent 
year of spot price data available. The wholesale power price is 
adjusted for inflation from the year associated with the published spot 
price indices to the year in which the operating fee is to be due, 
based on the Lease Anniversary and using annual implicit price 
deflators as reported by the U.S. Department of Commerce Bureau of 
Economic Analysis.

Financial Assurance

    Within 10 business days after receiving the lease copies and 
pursuant to 30 CFR 585.515-.516, the provisional winner must provide an 
initial lease-specific bond, or other approved means of meeting the 
lessor's initial financial assurance requirements. A provisional 
winning bidder may meet financial assurance requirements by posting a 
surety bond or by setting up an escrow account with a trust agreement 
giving BOEM the right to withdraw the money held in the account on 
demand. BOEM encourages provisionally winning bidders to discuss the 
financial assurance requirement with BOEM as soon as possible after the 
auction has concluded.
    BOEM will base the amount of all SAP, COP, and decommissioning 
financial assurance requirements on cost estimates for meeting all 
accrued lease obligations at the respective stages of development. The 
required amount of supplemental and decommissioning financial assurance 
will be determined on a case-by-case basis.
    The financial terms can be found in Addendum ``B'' of the proposed 
leases, which BOEM has made available with this notice on its Web site 
at: https://www.boem.gov/New-Jersey/.
    Bid Deposit: A bid deposit is an advance cash deposit submitted to 
BOEM in order to participate in the auction. No later than October 20, 
2015, each qualified bidder must have submitted a bid deposit of 
$450,000. Any qualified bidder who fails to submit the bid deposit by 
this deadline may be disqualified from participating in the auction. 
Bid deposits will be accepted online via pay.gov.
    Each bidder must fill out the Bidder's Financial Form referenced in 
this FSN. BOEM has also made a copy of the form available with this 
notice on its Web site at: https://www.boem.gov/New-Jersey/. BOEM 
recommends that each bidder designate an email address in its BFF that 
the bidder will then use to create an account in pay.gov (if it has not 
already done so). Bidders may then use the Bid Deposit Form on the 
pay.gov Web site to leave a deposit.
    BOEM will not consider BFFs submitted by qualified bidders for 
previous lease sales to satisfy the requirements of this auction. BOEM 
will also only consider BFFs submitted after the deadline if BOEM 
determines that the failure to timely submit the BFF was caused by 
events beyond the bidder's control. BOEM will only accept an original, 
executed paper copy of the BFF. The BFF must be executed by an 
authorized representative who has been identified in the qualifications 
package on file with BOEM as authorized to bind the company.
    Following the auction, bid deposits will be applied against bonus 
bids or other obligations owed to BOEM. If the bid deposit exceeds a 
bidder's total financial obligation, the balance of the bid deposit 
will be refunded to the bidder. BOEM will refund bid deposits to non-
winners.
    Minimum Bid: The minimum bid is the lowest price that BOEM will 
accept as a winning bid for a LA. BOEM has established a minimum bid 
per acre of $2.00 for this lease sale. Accordingly, the minimum bids 
will be $320,960 for Lease OCS-A 0498 and $366,706 for Lease OCS-A 
0499.

Auction Procedures

Summary of Auction Format

    As authorized under 30 CFR 585.220(a)(4) and 585.221(a)(6), BOEM 
will conduct this lease sale under a multiple-factor auction format, 
with a multiple-factor bidding system. Under this system, BOEM may 
consider a combination of monetary and non-monetary factors, or 
``variables,'' in determining the outcome of the auction. BOEM will 
appoint a panel of three BOEM employees to review the non-monetary 
packages and verify the results of the lease sale. BOEM reserves the 
right to change the composition of this panel prior to the date of the 
lease sale. The panel plans to meet to consider non-monetary packages 
on November 5, 2015. At this meeting, the panel will determine whether 
any bidder has earned a non-monetary credit (such as by submitting 
legal documentation that it holds a valid PPA or OREC) to be used 
during the auction and, if so, the value of that credit. The panel also 
will help determine the

[[Page 57869]]

winning bids for each LA in accordance with the procedures described in 
this FSN.
    As described below, BOEM has updated the auction details previously 
described in the PSN (79 FR 42361): A bidder can now bid on and win 
only one of the two LAs. This change was made following receipt and 
assessment of comments made on the PSN, as described in BOEM's Response 
to Comments and Explanation of Changes document, which can be found at 
the following URL: https://www.boem.gov/New-Jersey/.
    Only qualified bidders who submit the required bid deposit are 
authorized to bid in the sale. BOEM's asking prices in the opening 
round will be the minimum bids for each LA.
    The auction will balance consideration of two variables: (1) A cash 
bid, and (2) a non-monetary credit. These two variables comprise the 
multi-factor bid (or ``as-bid'' auction price), as reflected either in 
a bidder submitting a ``live'' bid (i.e., one that meets BOEM's asking 
price) or offering its own ``intra-round'' bid subject to certain 
conditions (described more fully below).
    Bidding continues in successive rounds as long as at least one LA 
had two or more live bids in the previous round. The bidding ends at 
the round in which both LAs have one or zero live bids. This triggers 
the two-stage award part of the auction, as discussed below.
    All of the live bids submitted in any round of the auction will be 
preserved and considered binding until determination of the winning 
bids is made. Therefore, the bidders are responsible for payment of 
each of the bids they submit.

Overview of the Multiple-Factor Bidding Format Proposed for This Sale

    BOEM has chosen to adopt a multi-round, multiple-factor auction 
format, pursuant to 30 CFR 585.220(a)(4). Under this format, BOEM may 
consider a combination of factors as part of each bid. The multiple-
factor format provides BOEM flexibility in administering the auction. 
The regulations leave to BOEM the determination as to how to administer 
the multiple-factor auction format in order to ``ensure a fair return 
to the United States'' under OCSLA, 43 U.S.C 1337(p)(2)(A).
    Under the format for this sale, a bidder may submit a bid proposal, 
i.e., a multiple-factor bid, on only one LA per round. The multiple-
factor bid made by a particular bidder in each round represents the sum 
of a non-monetary credit and a monetary (cash) amount. The non-monetary 
portion of each bid consists of a credit of up to 25% of BOEM's last 
asking price met by the bidder for a given LA. This credit will be 
recalculated and applied throughout the auction in each round as a form 
of imputed payment against the LA's asking price in a bidder's 
multiple-factor bid. More details on the non-monetary factors are found 
in the ``Credit Factors'' section below.
    The auction continues for both LAs as long as there are two or more 
competing live bids for either or both LAs. At the end of each round, 
BOEM will share with the bidders the number of live bids associated 
with each LA and the asking prices in the next round.
    This auction format enables both consideration of more than one 
bidding factor and enhanced competition among bidders for lease areas. 
The auction format also allows bidders to adjust their bidding 
strategies and bidding targets in real time as the auction proceeds 
through successive rounds of bidding. Accordingly, BOEM has concluded 
that this auction format will enhance competition and reduce bidder 
uncertainty more effectively than other available auction formats.

Credit Factors

    Prior to the auction, BOEM will convene a panel pursuant to 30 CFR 
585.222(d) to evaluate bidders' non-monetary packages to determine 
whether and to what extent each bidder is eligible for a non-monetary 
credit. To qualify for the credit, bidders must submit non-monetary 
packages that meet the criteria outlined in the ``Credit Factor 
Definitions'' section below. The only non-monetary credits that BOEM 
will consider in this auction are a New Jersey OREC award and a PPA. In 
order to receive one of these credits, a bidder must be legally, 
technically, and financially qualified to acquire a commercial OCS wind 
lease, and must not be affiliated with another bidding entity seeking 
credit for the same PPA or qualified application for a New Jersey OREC. 
Any single PPA or OREC cannot be used by more than one bidder in the 
auction. The panel will review all non-monetary packages submitted and 
will determine whether bidders have established that they are qualified 
to receive a credit--and the percentage at which that credit will 
apply. The auction will proceed whether or not any bidders have 
qualified for a non-monetary factor.
    A bidder will earn the full 25% credit if the BOEM panel determines 
the bidder has either a New Jersey OREC Order or a PPA totaling 250 MW 
or more. Smaller credit percentages may be earned for holding a valid 
PPA totaling less than 250 MW. BOEM will inform bidders by email before 
the monetary stage of the auction regarding the percentage credit that 
will be applied to their bid.
    The bid credit will be bundled into each bid. In each round, the 
auction system will show each bidder how their as-bid auction price is 
affected by the credit imputed to its bid. For an intra-round bid (as 
defined below), the credit will be based on the previous round's asking 
price, not on the additional amount above the previous round's asking 
price that may be offered in an intra-round bid.

Bid Deposit

    To be eligible to offer a bid on a LA at the start of the auction, 
BOEM must receive a bidder's bid deposit of $450,000 by October 20, 
2015. A bidder's bid deposit will be used by BOEM as a down payment on 
the winning bid submitted by the bidder, should it be awarded a lease.

Details of the Auction Process

    The auction will be conducted in a series of rounds. At the start 
of each round BOEM will state an asking price for the North LA and an 
asking price for the South LA. If a bidder is willing to meet the 
asking price for one of the LAs, it will indicate its intent by 
submitting a bid equal to the asking price. Any bid equal to the asking 
price is considered a ``live bid.'' If the bidder has earned a credit, 
it will meet the asking price by submitting a multiple-factor bid--that 
is, a live bid that consists of a monetary element and a non-monetary 
element, the sum of which equals the asking price.
    To participate in the next round of the auction, a bidder must 
submit a live bid for one of the LAs in each previous round.
    As long as there are two or more live bids for at least one LA, the 
auction moves to the next round. BOEM will raise the asking price for 
such LA by an increment determined by BOEM. Asking price increments 
will be determined based on a number of factors, including (but not 
necessarily limited to) the expected time needed to conduct the auction 
and the number of rounds that have already occurred. BOEM reserves the 
right to increase or decrease bidding increments if it determines that 
different increments of asking prices are warranted.
    A bidder may switch its live bid from one LA to the other in the 
current round only if its bid from the previous round was contested--
i.e., a bidder cannot switch from LA-1 to LA-2 unless there was at 
least one other bid for LA-1 in the last round. If the bid was not

[[Page 57870]]

contested in the previous round, the bidder cannot switch LAs, and its 
previous round bid will be carried forward to the next round. If 
another bidder places a live bid on LA-1 later in the auction, BOEM 
will stop automatically carrying forward the previously uncontested bid 
on that LA. The bidder that placed the previously carried forward bid 
is then free to bid on either lease area in the next round at the new 
asking prices.
    A bidder remains eligible to participate in the auction if it has 
submitted a live bid in the prior round, or has its uncontested bid 
carried forward by BOEM to the current round.
    Between rounds, BOEM will disclose to all bidders eligible to bid 
in the next round: (1) The number of live bids for each LA in the 
previous round of the auction (i.e., the level of demand); and (2) the 
asking price for each LA in the upcoming round of the auction. As 
discussed below, if a bidder decides to stop bidding further when its 
bid is contested, there are still circumstances where the bidder could 
still win (e.g., if the winning bid is disqualified at the award stage 
of the auction). If this happens, the bidder may be bound by its bid 
(and potentially obligated to pay up to the full amount) until the 
auction results are finalized.
Intra-Round Bidding
    A bidder may submit an intra-round bid that is higher than the 
previous round's asking price and less than the current round's asking 
price. An intra-round bid must consist of a single offer price for the 
same LA from the bidder's live bid in the previous round. An intra-
round bid in this sale is equivalent to an exit bid, since it reduces 
the bidder's eligibility by one LA, and the bidder only has an 
eligibility of one LA at the start of the auction. During the auction, 
the intra-round bid will be seen only by BOEM and not by other bidders.
    BOEM will not consider intra-round bids the same way as it does 
live bids for the purpose of determining whether to increase the asking 
price for a particular LA or to end the auction. A LA with only intra-
round bids in a given round will not have its asking price raised in 
the next round. As long as both LAs have one or zero live bids, the 
auction is over, regardless of the number of intra-round bids on each 
area. For example, if each LA has one live bid and multiple intra-round 
bids, the auction will end. All intra-round bids submitted during the 
auction will be preserved, and the highest intra-round bid for a LA in 
this sale may be determined to be the provisionally winning bid for 
that LA under certain circumstances.

Determining Provisional Winners

    After the bidding ends, BOEM will determine the provisionally 
winning bids through a two-stage award process. During this process, 
BOEM and its panel will assess the two components of the multiple-
factor bids, determine the provisional winners for each LA and identify 
the applicable bid prices to be paid by the winners for the LA they 
won. The panel will also validate the results of the auction in a 
timely manner. Provisional winners may be disqualified if they are 
subsequently found to have violated auction rules or otherwise engaged 
in conduct detrimental to the integrity of the competitive auction.
    In Stage 1, BOEM will determine if either or both LAs have one live 
bid. BOEM will designate the provisional winner of a LA to be that 
bidder who offers the only live bid for that LA in the final round of 
the auction. As a result, this bidder is provisionally assured of 
winning the LA included in its final round bid, regardless of any other 
prior-to-final round live bids or intra-round bids in any round. If 
both LAs are awarded to bidders in Stage 1, BOEM need not proceed to 
Stage 2.
    In Stage 2, BOEM will determine if the LA(s) not awarded in Stage 1 
can be awarded based on intra-round bids and prior round live bids. In 
making this determination, BOEM will award leases to the bid(s) that 
maximize(s) the total as-bid prices, subject to the condition that a 
bidder can win at most one LA. If there is a provisional winning bidder 
for a LA in Stage 1, all bids by that bidder on the other LA will be 
excluded from consideration in selecting the provisional winning bidder 
in Stage 2.
    The award procedures in Stage 2 could result in a tie if, for 
example, two bidders submit identical intra-round bids or prior round 
live bids for the same LA. In such cases, BOEM will resolve the tie by 
randomized means.
    If a bidder submits a bid that BOEM and its panel determine to be a 
provisionally winning bid, the bidder will be expected to sign the 
applicable lease documents and submit the full cash payment due within 
10 days pursuant to 30 CFR 585.224. BOEM reserves the right to not 
issue the lease to the provisionally winning bidder if that bidder 
fails to timely sign and pay for the lease or otherwise fails to comply 
with applicable regulations or terms of this FSN. In that case, that 
bidder will forfeit its bid deposit. BOEM may consider failure of a 
bidder to timely pay the full amount due an indication that the bidder 
is no longer financially qualified to participate in other lease sales 
under BOEM's regulations at 30 CFR 585.106 and 585.107.

Additional Information Regarding the Auction Format

Credit Factor Definitions
    The definitions below will apply to the factors for which bidders 
may earn a credit.
    A Power Purchase Agreement (PPA) is any legally enforceable long-
term contract negotiated between an electricity generator (Generator) 
and a power purchaser (Buyer) that identifies, defines, and stipulates 
the rights and obligations of one party to produce, and the other party 
to purchase, energy from an offshore wind project to be located in the 
lease sale area. Except where approval of the PPA would not otherwise 
be required by the New Jersey Board of Public Utilities, such approval 
must be obtained before a PPA will be eligible for credit in a non-
monetary package in BOEM's lease sale. The PPA must state that the 
Generator will sell to the Buyer and the Buyer will buy from the 
Generator capacity and/or energy from the project, as defined in the 
terms and conditions set forth in the PPA. To qualify, a PPA must 
contain the following terms or supporting documentation:
    (i) A complete description of the proposed project;
    (ii) Specification of the energy products to be supplied by the 
Generator;
    (iii) Identification of both the electricity Generator and Buyer 
that will enter into a long term contract;
    (iv) A timeline for permitting, licensing, and construction;
    (v) Pricing projected under the long term contract being sought, 
including prices for all market products that would be sold under the 
proposed long term contract;
    (vi) A schedule of quantities of each product to be delivered and 
projected electrical energy production profiles;
    (vii) The term for the long term contract;
    (viii) Details of the firm cost recovery mechanism approved by the 
State's public utility commission or other applicable authority used to 
recover expenditures incurred as a result of the PPA;
    (ix) Citations to all filings related to the PPA that have been 
made with state and Federal agencies, and identification of all such 
filings that are necessary to be made; and
    (x) Copies of or citations to interconnection filings related to 
the PPA.

[[Page 57871]]

    If the panel determines a bidder has executed a PPA for at least 
250 MW, it will be eligible for the entire 25% credit. If the panel 
determines a bidder has executed a PPA for an amount less than 250 MW, 
the bidder may still be eligible for a non-monetary credit proportional 
to the PPA's fraction of 250 MW. The smaller percentage for a partial 
credit will be calculated according to the following formula:
[GRAPHIC] [TIFF OMITTED] TN25SE15.015

Where:

 Partial Credit = Percent credit for which a smaller PPA is 
eligible.
 Full PPA = 250 MW
 Full Credit = 25%
 Partial PPA = amount (less than 250 MW) of power under 
contract

    A New Jersey OREC Order is a qualified application for an Offshore 
Renewable Energy Certificate (OREC) representing the environmental 
attributes of one megawatt hour of electric generation from a qualified 
offshore wind project that has been approved or conditionally approved 
by the New Jersey Board of Public Utilities (NJ BPU).
    The NJ BPU defines a qualified offshore wind project as a wind 
turbine electric generation facility in the Atlantic Ocean and 
connected to the electrical transmission systems in New Jersey, 
including the associated transmission-related interconnection 
facilities and equipment.
    If the panel determines a bidder has secured a New Jersey OREC 
order satisfying the criteria outlined in the New Jersey Offshore Wind 
Economic Development Act (2010), the bidder will be eligible for the 
entire 25% credit.
Bidder Authentication
    Prior to the auction, the Auction Manager will send several bidder 
authentication packages to the bidders shortly after BOEM has processed 
the BFFs. One package will contain digital authentication tokens for 
each authorized individual allowing access to the auction Web site. The 
tokens will be mailed to the Primary Point of Contact indicated on the 
BFF. This individual is responsible for distributing the tokens to the 
individuals authorized to bid for that company. Bidders are to ensure 
that each token is returned within three business days following the 
auction. An addressed, stamped envelope will be provided to facilitate 
this process. In the event that a bidder fails to submit a bid deposit 
or does not participate in the auction, BOEM will de-activate that 
bidder's token and login information, and the bidder will be asked to 
return its tokens.
    The second package contains login credentials for authorized 
bidders. The login credentials will be mailed to the address provided 
in the BFF for each authorized individual. Bidders can confirm these 
addresses by calling 703-787-1320. This package will contain user login 
information and instructions for accessing the Auction System Technical 
Supplement and Alternative Bidding Form. The login information, along 
with the tokens, will be tested during the Mock Auction.
Timing of Auction
    The auction will begin at 9:00 a.m. ET November 9, 2015. Bidders 
may log in as early as 8:00 a.m. on that day. We recommend that bidders 
log in no later than 8:30 a.m. to ensure that any login issues are 
resolved prior to the start of the auction. Once bidders have logged 
in, they should review the auction schedule, which lists the start 
times, end times, and recess times of each round in the auction. Each 
round is structured as follows:
     Round bidding begins;
     Bidders enter their bids;
     Round bidding ends and the recess begins;
     During the recess, previous round results and the next 
round's asking prices are posted;
     Bidders review the previous Round results and prepare 
their next Round bids;
     Next Round bidding begins.
    The first round will last about 30 minutes, and subsequent rounds 
may be shorter. Recesses are anticipated to last approximately 10 
minutes. The descriptions of the auction schedule and asking price 
increments included with this FSN are tentative. Bidders should consult 
the auction schedule on the bidding Web site just before and during the 
auction for updated times. Bidding may continue until about 6:00 p.m. 
for each day of the auction. BOEM anticipates the auction will last one 
or two business days, but bidders are advised to prepare to continue 
bidding for additional business days as necessary to resolve the 
auction.
    BOEM and the auction contractors will use the auction platform 
messaging service to keep bidders informed on issues of interest during 
the auction. BOEM will use the messaging system for auction schedule 
changes and other updates during the auction.
    Bidders may place bids at any time during the round. At the top of 
the bidding page, a countdown clock will show how much time remains in 
the round. Bidders have until the scheduled ending time to place bids. 
Bidders should bid according to the procedures described in both this 
notice and the Auction System Technical Supplement. No information 
about bidding during the round is available until the round has closed 
and results have been posted, so there is no tactical advantage to 
placing bids early or late in the round.
    The timing of the auction will be elaborated on and clarified in 
the Auction System Technical Supplement available on BOEM's Web site 
at: https://www.boem.gov/New-Jersey/. The Auction System Technical 
Supplement describes auction procedures that are incorporated by 
reference in this notice, except where the procedures described in the 
Auction System Technical Supplement directly contradict this notice.
Alternate Bidding Procedures
    Alternate Bidding Procedures enable a bidder who is having 
difficulties accessing the Internet to submit its bid via fax using an 
Alternate Bidding Form available on BOEM's Web site at: https://www.boem.gov/New-Jersey/.
    In order to be authorized to use an Alternative Bidding Form, a 
bidder must call the help desk number listed in the Auction Manual 
before the end of the round. BOEM will authenticate the caller to 
ensure he/she is authorized to bid on behalf of the company. The bidder 
must explain the reasons for which he/she is forced to place a bid 
using the Alternate Bidding Procedures. BOEM may, in its sole 
discretion, permit or refuse to accept a request for the placement of a 
bid using the Alternate Bidding Procedures. If bidders need to submit 
an Alternate Bidding Form, they are strongly encouraged to do so before 
the round ends.
    Rejection or Non-Acceptance of Bids: BOEM reserves the right and 
authority to reject or not accept any and all bids that do not satisfy 
the requirements and rules of the auction, this FSN, and all applicable 
regulations and statutes.

[[Page 57872]]

Anti-Competitive Behavior Review
    Bidding behavior in this sale is subject to Federal antitrust laws. 
Accordingly, following the auction, but before the acceptance of bids 
and the issuance of leases, BOEM will ``allow the Attorney General, in 
consultation with the Federal Trade Commission, 30 days to review the 
results of the lease sale.'' 43 U.S.C. 1337(c). If a bidder is found to 
have engaged in anti-competitive behavior in connection with its 
participation in the competitive bidding process, BOEM may reject the 
provisionally winning bid. Compliance with BOEM's auction procedures 
and regulations is not an absolute defense to violations of antitrust 
laws.
    Anti-competitive behavior determinations are fact specific. 
However, such behavior may manifest itself in several different ways, 
including, but not limited to:
     An express or tacit agreement among bidders to not bid in 
an auction, or to bid a particular price;
     An agreement among bidders not to bid for a particular LA;
     An agreement among bidders not to bid against each other; 
and
     Other agreements among bidders that have the potential to 
affect the final auction price.
    BOEM will decline to award a lease if the Attorney General, in 
consultation with the Federal Trade Commission, determines that doing 
so would be inconsistent with the antitrust laws. See 43 U.S.C. 
1337(c).
    For more information on whether specific communications or 
agreements could constitute a violation of Federal antitrust law, 
please see: https://www.justice.gov/atr/public/business-resources.html, 
or consult legal counsel.
    Process for Issuing the Leases: Once all post auction reviews have 
been completed to BOEM's satisfaction, BOEM will issue three unsigned 
copies of the lease to each provisionally winning bidder. Within 10 
business days after receiving the lease copies, each provisionally 
winning bidder must:
    1. Execute the lease on the bidder's behalf;
    2. File financial assurance, as required under 30 CFR 585.515-537; 
and
    3. Pay by electronic funds transfer (EFT) the balance (if any) of 
the bonus bid (winning bid less the bid deposit). BOEM requires bidders 
to use EFT procedures (not pay.gov, the Web site bidders used to submit 
bid deposits) for payment of the balance of the bonus bid, following 
the detailed instructions contained in the ``Instructions for Making 
Electronic Payments'' available on BOEM's Web site at: https://www.boem.gov/New-Jersey/.
    BOEM will not execute a lease until the three requirements above 
have been satisfied, BOEM has accepted the provisionally winning 
bidder's financial assurance pursuant to 30 CFR 585.515, and BOEM has 
processed the provisional winning bidder's payment.
    BOEM may extend the ten business day deadline for executing the 
lease on the bidder's behalf, filing the required financial assurance, 
and/or paying the balance of the bonus bid if it determines the delay 
was caused by events beyond the provisional winning bidder's control.
    If the provisionally winning bidder does not meet these 
requirements or otherwise fails to comply with applicable regulations 
or the terms of the FSN, BOEM reserves the right to not issue the lease 
to that bidder. In such a case the winning bidder will forfeit its bid 
deposit.
    In the event that a provisional winner does not execute and return 
its lease according to the instructions in this notice, BOEM reserves 
the right to reconvene the panel to determine whether it is possible 
and desirable to identify a new provisionally winning bidder.
    Within 45 days of the date that the provisionally winning bidder 
receives copies of the lease, it must pay the first year's rent using 
the pay.gov Renewable Energy Initial Rental Payment form available at: 
https://pay.gov/paygov/forms/formInstance.html?agencyFormId=27797604. 
Subsequent annual rent payments must be made following the detailed 
instructions contained in the ``Instructions for Making Electronic 
Payments,'' available on BOEM's Web site at: https://www.boem.gov/New-Jersey/.
    Non-Procurement Debarment and Suspension Regulations: Pursuant to 
regulations at 43 CFR part 42, subpart C, an OCS renewable energy 
lessee must comply with the Department of the Interior's non-
procurement debarment and suspension regulations at 2 CFR parts 180 and 
1400. The lessee must also communicate this requirement to persons with 
whom the lessee does business relating to this lease, by including this 
term as a condition in their contracts and other transactions.
    Force Majeure: The Program Manager of BOEM's Office of Renewable 
Energy Programs has the discretion to change any auction details 
specified in the FSN, including the date and time, in case of a force 
majeure event that the Program Manager deems may interfere with a fair 
and proper lease sale process. Such events may include, but are not 
limited to: Natural disasters (e.g., earthquakes, hurricanes, floods, 
blizzards), wars, riots, acts of terrorism, fire, strikes, civil 
disorder or other events of a similar nature. In case of such events, 
BOEM will notify all qualified bidders via email, phone, or through the 
BOEM Web site at: https://www.boem.gov/Renewable-Energy-Program/index.aspx. Bidders should call 703-787-1320 if they have concerns.
    Appeals: The appeals procedures are provided in BOEM's regulations 
at 30 CFR 585.225 and 585.118(c). Pursuant to 30 CFR 585.225:
    (a) If BOEM rejects your bid, BOEM will provide a written statement 
of the reasons and refund any money deposited with your bid, without 
interest.
    (b) You will then be able to ask the BOEM Director for 
reconsideration, in writing, within 15 business days of bid rejection, 
under 30 CFR 585.118(c)(1). We will send you a written response either 
affirming or reversing the rejection.
    The procedures for appealing final decisions with respect to lease 
sales are described in 30 CFR 585.118(c).
Protection of Privileged or Confidential Information
    BOEM will protect privileged or confidential information that you 
submit as required by the Freedom of Information Act (FOIA). Exemption 
4 of FOIA applies to ``trade secrets and commercial or financial 
information that you submit that is privileged or confidential.'' 5 
U.S.C. 552(b)(4). If you wish to protect the confidentiality of such 
information, clearly mark it ``Contains Privileged or Confidential 
Information'' and consider submitting such information as a separate 
attachment. BOEM will not disclose such information, except as required 
by FOIA. Information that is not labeled as privileged or confidential 
will be regarded by BOEM as suitable for public release.
    BOEM will not treat as confidential aggregate summaries of 
otherwise confidential information or comments not containing such 
information. Additionally, BOEM will not treat as confidential the 
legal title of the commenting entity (e.g., the name of your company).

    Dated: September 1, 2015.
Abagail Ross Hopper,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2015-24392 Filed 9-24-15; 8:45 am]
 BILLING CODE 4310-MR-P