Atlantic Wind Lease Sale 6 (ATLW-6) for Commercial Leasing for Wind Power on the Outer Continental Shelf Offshore New York-Final Sale Notice MMAA104000, 75429-75438 [2016-26240]

Agencies

• DEPARTMENT OF THE INTERIOR
• Bureau of Ocean Energy Management

[Federal Register Volume 81, Number 210 (Monday, October 31, 2016)]
[Notices]
[Pages 75429-75438]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-26240]


-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2016-0071]


Atlantic Wind Lease Sale 6 (ATLW-6) for Commercial Leasing for 
Wind Power on the Outer Continental Shelf Offshore New York--Final Sale 
Notice MMAA104000

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Final sale notice for commercial leasing for Wind Power on the 
Outer Continental Shelf Offshore New York.

-----------------------------------------------------------------------

SUMMARY: This document is the Final Sale Notice (FSN) for the sale of 
one commercial wind energy lease on the Outer Continental Shelf (OCS) 
offshore New York, pursuant to 30 CFR 585.216. The Bureau of Ocean 
Energy Management (BOEM or ``the Bureau'') will offer Lease OCS-A 0512 
for sale using a multiple-factor auction format. This FSN contains 
information pertaining to the area available for leasing, lease 
provisions and conditions, auction details, the lease form, criteria 
for evaluating competing bids, award procedures, appeal procedures, and 
lease execution. The issuance of the lease resulting from this sale 
would not constitute an approval of project-specific plans to develop 
offshore wind energy. Such plans, if submitted by the lease sale 
winner, would be subject to subsequent environmental and public review 
prior to a decision to proceed with development.

DATES: BOEM will hold a mock auction for the bidders starting at 8:30 
a.m. Eastern Standard (EST) on December 13, 2016. The monetary auction 
will be held online and will begin at 8:30 a.m. Eastern Standard Time 
(EST) on December 15, 2016. Additional details are provided in the 
section entitled, ``Deadlines and Milestones for Bidders.''

FOR FURTHER INFORMATION CONTACT: Wright Frank, New York Project 
Coordinator and Auction Manager, BOEM Office of Renewable Energy 
Programs, 45600 Woodland Road, VAM-OREP, Sterling, Virginia, 20166, 
(703) 787-1325 or Wright.Frank@boem.gov.
    Background: BOEM proposed this lease sale on June 6, 2016, in 
Proposed Sale Notice (PSN) for Commercial Leasing for Wind Power on the 
Outer Continental Shelf (OCS) Offshore New York, which was published in 
the Federal Register with a 60-day public comment period (81 FR 36336). 
BOEM received 401 comment submissions in response to the PSN, which are 
available in the Federal Register docket (Docket ID: BOEM-2016-0027) 
through BOEM's Web site at: https://www.boem.gov/New-York/. BOEM has 
posted a document containing responses to comments submitted during the 
PSN comment period. The document, entitled Response to Comments, can be 
found at the following URL: https://www.boem.gov/New-York/.
    BOEM made several changes from the description of the New York 
lease sale that was published in the PSN. Three changes worth 
highlighting are: A 10% bidding credit for entities that establish that 
they are a ``government authority'' meeting the definition included in 
this notice, an adaptation to the auction format, and the removal of a 
small portion of the lease area. The auction format described here 
differs slightly from past lease sales in that bidders may have a 
``limited opportunity to revoke'' a provisionally winning bid without 
penalty if the next-highest bid was submitted by a governmental entity. 
An explanation regarding the reduction in the area of the LA relative 
to the area described in the PSN is provided in the section entitled 
``Area Offered for Leasing.''

Environmental Reviews

    On May 28, 2014, BOEM published a Notice of Intent (NOI) to Prepare 
an Environmental Assessment (EA) for commercial wind lease issuance and 
approval of site assessment activities on the Atlantic OCS offshore New 
York with a 45-day public comment period (79 FR 30643). In response to 
the NOI, BOEM received 32 comment

[[Page 75430]]

submissions, a link to which is available at https://www.boem.gov/New-York/. BOEM considered these comments in determining the scope of 
issues and alternatives analyzed in the EA.
    On June 6, 2016, in conjunction with the PSN, BOEM published an EA 
for public comment (81 FR 36344). BOEM received approximately 60 
submittals. Submittals included letters, emails, comment cards, and 
comments made to a court reporter at public meetings. BOEM identified 
300 discrete comments within the submittals received. Comments were 
received from various stakeholders, including private citizens, 
environmental groups, Federal agencies, trade associations, businesses, 
state agencies, universities, and Federal organizations.
    Concurrent with publication of this FSN, BOEM has published a 
Notice of Availability (NOA) for the revised EA and Finding of No 
Significant Impact (FONSI) for commercial wind lease issuance and site 
assessment activities on the Atlantic OCS offshore New York. The EA and 
FONSI are available at: https://www.boem.gov/New-York/.
    All consultations necessary to inform BOEM's lease issuance 
decision have been completed. BOEM completed consultations with the 
National Oceanic and Atmospheric Administration's National Marine 
Fisheries Service (NMFS) and the U.S. Fish and Wildlife Service (USFWS) 
under the Endangered Species Act (ESA). BOEM completed formal 
consultation with NMFS upon receipt of a Biological Opinion on March 
10, 2013, (revised on April 10, 2013). That consultation covered lease 
issuance and site characterization activities (i.e., high resolution 
geophysical surveys, biological surveys, and geotechnical sampling). On 
September 14, 2016, the USFWS concurred with BOEM's determination that 
such activities were not likely to adversely affect piping plovers, 
roseate terns, and red knots, and BOEM's determination of no effect on 
the northern long-eared bat for site characterization and assessment 
activities.
    BOEM also consulted with the State Historic Preservation Offices of 
New York and New Jersey, the National Park Service, and Monmouth County 
New Jersey under the National Historic Preservation Act. The Finding of 
No Historic Properties Affected for the Issuance of a Commercial Lease 
with in the New York Wind Energy Area on the Outer Continental Shelf 
Offshore New York can be found at: https://www.boem.gov/Renewable-Energy/Historic-Preservation-Activities/. In August 2016, the States of 
New York and New Jersey concurred with BOEM's consistency determination 
under the Coastal Zone Management Act.
    On July 11, 2016, NMFS provided comments on the EA pursuant to the 
Magnuson-Stevens Fishery Conservation and Management Act (MSFCMA) and 
recommended that BOEM coordinate with NMFS in the review of site-
specific survey plans and Site Assessment Plans (SAPs). Because of the 
programmatic nature of the essential fish habitat (EFH) assessment, 
NMFS elected not to provide any specific EFH conservation measures 
until such time as site-specific plans are received.
    For the issuance of a commercial lease, BOEM considers the 
environmental consequences of associated site characterization 
activities (i.e., biological, archeological, geological and geophysical 
surveys, and core sampling). Therefore, mitigation measures designed to 
reduce or eliminate impacts from survey activities will be included as 
stipulations in Addendum ``C'' of the lease (OCS-A 0512). If a lease is 
issued, BOEM will prepare additional environmental reviews upon receipt 
of the lessee's SAP and/or Construction and Operations Plan (COP). BOEM 
will continue to work with affected stakeholders and assess ongoing and 
future research relating to potential survey, site assessment, and 
construction and operations impacts, including potential mitigation 
measures.
    List of Eligible Bidders: BOEM has determined that pursuant to 30 
CFR 585.106 and 107, the following entities are legally, technically, 
and financially qualified to hold a commercial wind lease offshore New 
York, and therefore may participate in this lease sale as bidders 
subject to meeting the requirements outlined in this notice.

------------------------------------------------------------------------
                      Company name                          Company No.
------------------------------------------------------------------------
Avangrid Renewables, LLC................................           15019
CI-II NY Inc............................................           15063
Clean Power Northeast Development Inc...................           15064
Convalt Energy LLC......................................           15051
Deepwater Wind Hudson Canyon, LLC.......................           15028
DONG Energy Wind Power (U.S.) Inc.......................           15059
EDF Renewable Development, Inc..........................           15027
Energy Management, Inc..................................           15015
Fishermen's Energy, LLC.................................           15005
Innogy US Renewable Projects LLC........................           15061
New York State Energy Research and Development Authority           15062
Sea Breeze Energy LLC...................................           15044
Statoil Wind US LLC.....................................           15058
wpd offshore Alpha LLC..................................           15060
------------------------------------------------------------------------

    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 various stages: The FSN Waiting Period; Conducting the 
Auction; and From the Auction to Lease execution.
     FSN Waiting Period
     Bidder's Financial Form (BFF): Each bidder must submit a 
BFF to BOEM in order to participate in the auction. BOEM must receive 
each bidder's BFF no later than November 14, 2016. BOEM will consider 
extensions to this deadline only if BOEM determines that the failure to 
timely submit a BFF was caused by events beyond the bidder's control. 
The BFF can be downloaded at: https://www.boem.gov/New-York/. Once the 
BFF has been processed, bidders may log into pay.gov and submit bid 
deposits. For purposes of this auction, BOEM will not consider any BFFs 
submitted by bidders for previous lease sales. BOEM will only accept an 
originally executed paper copy of the BFF. The BFF must be executed by 
an authorized representative 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 provide a bid deposit of 
$450,000 no later than November 28, 2016, in order to participate in 
the mock auction and the monetary auction. BOEM will consider 
extensions to this deadline only if BOEM determines that the failure to 
timely submit the bid deposit was caused by events beyond the bidder's 
control. Further information about bid deposits can be found in the 
``Bid Deposit'' section of this notice.
     Non-Monetary Package: Each bidder must submit a non-
monetary package if it is applying for a credit as a governmental 
authority as described in the ``Auction Procedures: Credit Factors'' 
section of this notice. For bidders applying for a credit, BOEM must 
receive non-monetary packages no later than November 28, 2016. BOEM 
will consider extensions to this deadline only if BOEM determines that 
the failure to timely submit a non-monetary package was caused by 
events beyond the bidder's control. Non-monetary packages must be 
submitted in both paper and electronic formats. BOEM considers Adobe 
.pdf files stored on an

[[Page 75431]]

electronic media (i.e., flash drive) to be acceptable.
    Further information on this subject can be found in the section of 
this notice entitled,''Auction Procedures.''
     Reservation of Limited Opportunity to Revoke (RLOR): Under 
certain circumstances described in detail in this notice, a bidder that 
submits a provisionally winning bid may be afforded a one-hour 
opportunity to revoke its provisionally winning bid without penalty at 
the end of the auction. This opportunity will only be allowed if a 
governmental authority submitted the second-highest bid. In order to 
revoke a provisionally winning bid, a bidder must have reserved this 
opportunity in advance. BOEM must receive, no later than November 28, 
2016, a completed form that can be downloaded from BOEM's Web site at 
https://www.boem.gov/New-York/, called the ``Reservation of Limited 
Opportunity to Revoke'' (RLOR). BOEM will consider extensions to this 
deadline only if it determines that the failure to timely submit the 
RLOR was caused by events beyond the bidder's control. By ``opting-
in,'' the bidder will have an opportunity, if certain conditions are 
met, to revoke a provisionally winning bid without penalty during a 
short period of time following the auction. If the bidder does not 
``opt-in,'' the bidder will not have this opportunity, and refusal to 
execute a lease pursuant to a provisionally winning bid will result in 
the loss of the bidder's bid deposit.
     Panel Convenes to Evaluate Non-Monetary Packages: A short 
time before the auction, the panel described in the ``Auction 
Procedures'' section will convene to evaluate non-monetary packages. 
The panel is tentatively scheduled to meet on December 9, 2016, for 
this purpose. If BOEM has not received a non-monetary package by 
November 28, 2016, then the BOEM panel designated as responsible for 
determining bidder eligibility for the credit may not consider that 
bidder for a non-monetary auction credit. Once it has made its 
decisions, the panel will report determinations of eligibility to BOEM. 
BOEM will then inform each bidder by email of the panel's determination 
as to whether the bidder qualifies for a non-monetary bid credit. Mock 
Auction: BOEM will hold a Mock Auction on December 13, 2016, beginning 
at 8:30 a.m. EST. The Mock Auction will be held online. BOEM will 
contact each bidder that has timely filed a BFF and bid deposit and 
provide instructions for participation. Only bidders that have timely 
submitted BFFs and bid deposits will be permitted to participate in the 
Mock Auction.
     Conducting the Auction: BOEM, through its contractor, will 
hold an auction as described in this notice.
     Auction: On December 15, 2016, BOEM, through its 
contractor, will hold the auction. The first round of the auction will 
start at 8:30 a.m. EST. The auction will proceed electronically 
according to a schedule to be distributed by the BOEM Auction Manager 
at the time of the auction. BOEM anticipates that the auction may 
continue on consecutive business days, as necessary, until the auction 
ends in accordance with the procedures described in the ``Auction 
Format'' section of this notice. The monetary bidding will end in the 
first round where BOEM receives one or zero bids at the asking price.
    [cir] Limited Opportunity to Revoke (LOR) (if criteria met): If the 
highest bidder has reserved an LOR, and a government authority is the 
second highest bidder, BOEM will contact the provisionally winning 
bidder through the auction system's messaging platform and ask whether 
the bidder would like to revoke its provisionally winning bid without 
penalty. The bidder will have one hour from the time the message is 
sent to respond via the messaging system. If the bidder fails to 
respond within the allotted hour, BOEM will presume the bidder does not 
wish to exercise its revocation right, and the bidder will lose the 
right to revoke its provisionally winning bid without penalty. Further 
information can be found in the Auction Procedures section of this 
notice.
     Announce Provisional Winner: BOEM will announce the 
provisional winner of the lease sale after the auction ends and the 
one-hour LOR period, if applicable, has elapsed.
     Reconvene the Panel: The panel will reconvene after the 
bidding has concluded to verify auction results.
     From the Auction to Lease Execution
     Refund Non-Winners: Once the provisional winner has been 
announced and the panel has verified the auction results, BOEM will 
provide the non-winners a written explanation of why they did not win 
and return their bid deposits.
     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 Sec.  1337(c).
     Delivery of the Lease: BOEM will send three lease copies 
to the winner, with instructions on how to execute the lease. The first 
year's rent is due 45 calendar days after the winner receives the lease 
copies for execution.
     Return the Lease: Within 10 business days of receiving the 
lease copies, the auction winner must post financial assurance, pay any 
outstanding balance of its bonus bid (i.e., winning monetary bid minus 
applicable non-monetary credits and bid deposit), and sign and return 
the three executed lease copies.
     Execution of Lease: Once BOEM has received the lease 
copies and verified that all other required materials have been 
received, BOEM will make a final determination regarding its issuance 
of the lease and will execute the lease if appropriate.
    Area Offered for Leasing: The area available for sale will be 
auctioned as one lease, Lease OCS-A 0512 (New York LA). The New York LA 
consists of approximately 79,350 acres, which is reduced from the area 
originally proposed in the PSN. The reduction comprises five aliquots 
(sixteenths of an OCS block), which were removed in response to 
comments received from NMFS in response to the NOA of the EA and as 
part of consulations pursuant to the MSFCMA. A description of the final 
LA can be found in Addendum ``A'' of the lease, which BOEM has made 
available with this notice on its Web site at: https://www.boem.gov/New-York/.

Map of the Area Offered for Leasing

    A map of the New York LA and GIS spatial files can be found on 
BOEM's Web site at: https://www.boem.gov/New-York/.
    A large scale map of the area, 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 Mitigation Measures and Restrictions on Development

    During the Area Identification (Area ID) process, BOEM identified 
three issues of concern associated with potential development of the 
New York Wind Energy Area (WEA): (1) Navigational safety; (2) 
commercial fishing; and (3) visual impacts to National Park Service 
lands and historic properties. Although BOEM did not remove any areas 
from leasing consideration during Area ID, potential bidders should be 
aware that future analysis of these or other issues could result in 
BOEM's requiring mitigation measures and/or development restrictions in 
all or part of the New York LA. In addition, mitigation measures and/or 
development restrictions could result from future BOEM environmental 
reviews and

[[Page 75432]]

consultations (e.g., future consultations under section 106 of the 
National Historic Preservation Act or future government-to-government 
consultations with federally recognized tribes).

Navigational Safety

    Potential bidders should note that future mitigation measures, 
including potential restrictions on the placement of structures, may be 
applied to development within all or portions of the New York LA to 
ensure navigation safety and the U.S. Coast Guard's (USCG's) ability to 
maintain mission readiness.
    The New York LA has been delineated to accommodate a setback of 1 
nautical mile (nmi) from the adjacent Traffic Separation Schemes (TSSs) 
for the Port of New York and New Jersey. This setback is consistent 
with BOEM's delineation of other lease and wind energy areas that are 
in close proximity to TSSs (e.g., the lease areas offshore 
Massachusetts, Rhode Island/Massachusetts, Delaware, and Maryland; and 
the Wilmington West Wind Energy Area offshore North Carolina), and is 
based on input provided by the USCG as a member of the BOEM New York 
Intergovernmental Renewable Energy Task Force during development of the 
2013 New York Request for Interest (RFI). As noted in the RFI, the LA 
includes aliquots that are transected by the 1 nmi setback line, and 
BOEM will require that no structures be installed on the portions of 
those aliquots located within the setback.
    In September 2015, BOEM received additional input from the USCG 
recommending a larger setback of 2 nmi from the TSSs and 5 nmi from the 
entry/exit points of the TSSs. USCG's correspondence to BOEM, which 
explains the recommendation, is available on BOEM's Web site at https://www.boem.gov/New-York/. In addition, on March 22, 2016, the USCG 
released its Final Report for its Atlantic Coast Port Access Route 
Study (ACPARS), available at https://www.uscg.mil/lantarea/acpars. The 
USCG's Marine Planning Guidelines, included as Enclosure 2 of the 
ACPARS, are consistent with its September 2015 recommendation to BOEM. 
Although BOEM did not adopt the USCG's recommendation during Area ID, 
BOEM may determine at a later stage in the process (e.g., after 
evaluating a Navigational Safety Risk Assessment that is submitted as a 
part of a COP) that, even with the application of mitigation measures, 
portions of the LA are not appropriate for the installation of wind 
facilities due to navigational safety concerns.

Commercial Fishing

    Potential bidders should note that future mitigation measures may 
be applied to development within all or portions of the New York LA due 
to the use of the area as a fishery.
    BOEM received fishery-related comments in response to the RFI, Call 
for Information and Nominations, NOI, NOA, and several public outreach 
meetings. Commenters included NMFS, the New England and Mid-Atlantic 
Fishery Management Councils, and several fishing industry groups, 
primarily representing members of the sea scallop and squid fisheries. 
BOEM also received comments from commercial and recreational fishermen 
during BOEM's November 2015 fisheries workshops. A meeting summary of 
BOEM's November 2015 fisheries workshops and comments associated with 
these workshops are available on BOEM's Web site at https://www.boem.gov/New-York/, along with those comments received in response 
to BOEM's Federal Register notices relating to the New York LA.
    BOEM has also gathered information regarding the use of the LA as a 
fishery through a joint study with NMFS. This data, specific to the New 
York LA, is included in the revised EA and is available on BOEM's Web 
site at https://www.boem.gov/Fishing-Revenue-NY-Call-Area/. The spatial 
dataset is available at https://www.boem.gov/Renewable-Energy-GIS-Data/. 
Potential bidders should be aware that BOEM will be gathering 
additional data and may require plan-specific mitigation measures to 
minimize impacts.
    Between 2012 and 2016, BOEM collaborated with numerous stakeholders 
in the fishing and offshore wind industries to develop best management 
practices (BMPs) in furtherance of its goal of minimizing potential 
multiple use conflicts between offshore renewable energy developers and 
the fishing industry. As a result of this effort, BOEM has concluded 
that there would be great merit in a lessee's utilizing a fisheries 
liaison and a fisheries representative during the lessee's plan 
development process. BOEM has also received comments from the public 
regarding the importance of ensuring effective communication between 
the lessee and the fishing community. As a result, BOEM has issued 
guidance to lessees for communicating with fisheries stakeholders 
regarding social and economic impacts of renewable energy development 
on the Atlantic Outer Continental Shelf: https://www.boem.gov/Social-and-Economic-Conditions-Fishery-Communication-Guidelines/. Further, 
BOEM is requiring in Addendum C of the lease that the lessee develop a 
Fisheries Communication Plan that includes the utilization of a 
fisheries liaison to facilitate communication with the fishing 
industry.

Visual Impacts to Historic Properties

    Potential bidders should note that future mitigation measures may 
be applied to development within all or portions of the New York LA to 
avoid, minimize, or mitigate adverse effects to historic properties or 
National Park Service (NPS) lands. The NPS, New York State Historic 
Preservation Office (NY SHPO), and New Jersey State Historic 
Preservation Office (NJ SHPO) have expressed concern regarding the 
potential for wind energy development within the New York WEA to cause 
adverse effects to onshore historic properties. Correspondence 
outlining these concerns is available on BOEM's Web site at https://www.boem.gov/New-York/.
    During the summer and fall of 2015, BOEM conducted stakeholder 
outreach with the NPS, NY SHPO, and NJ SHPO. BOEM also completed a 
study entitled, ``Renewable Energy Viewshed Analysis and Visualization 
Simulation for the New York Outer Continental Shelf Call Area'' to 
assist in this outreach effort and to provide scientific and technical 
information about visual impacts to inform its Area ID decision. 
Results of this study are available under the header ``Visual 
Simulations'' at https://www.boem.gov/New-York/.
    Withdrawal of Blocks: BOEM reserves the right to withdraw all or 
portions of the LA prior to executing the lease with the winning 
bidder, based upon relevant information provided to the Bureau.
    Lease Terms and Conditions: BOEM has included terms, conditions, 
and stipulations for the OCS commercial wind lease to be offered 
through this sale. After the lease is issued, BOEM reserves the right 
to require compliance with additional terms and conditions associated 
with approval of a SAP or COP.
    The lease is available on BOEM's Web site at https://www.boem.gov/New-York/. The 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);

[[Page 75433]]

     Addendum ``E'' (Rent Schedule post COP approval);
     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/.
    Potential bidders should note that BOEM and the Bureau of Safety 
and Environmental Enforcement (BSEE) are in the process of reassigning 
regulations relating to safety and environmental oversight and 
enforcement responsibilities for offshore renewable energy projects 
from BOEM to BSEE. Once this administrative reassignment is finalized, 
BOEM may make ministerial and non-substantive amendments to the lease 
to conform it to regulatory revisions.
    Plans: Pursuant to 30 CFR 585.601, the lessee must submit a SAP 
within 12 months of lease issuance. If the lessee intends to continue 
its commercial lease with an operations term, the lessee must submit a 
COP at least 6 months before the end of the site assessment term.
    Financial Terms and Conditions: This section provides an overview 
of the annual payments required of the lessee that will be fully 
described in the lease, and the financial assurance requirements that 
will be associated with the lease.
    Rent: Pursuant to 30 CFR 585.224(b) and 585.503, the first year's 
rent payment of $3 per acre is due within 45 calendar days of the date 
the lessee receives the lease for execution. Thereafter, annual rent 
payments are due on the anniversary of the Effective Date of the lease 
(the ``Lease Anniversary''). Once 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 ``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 a 79,350 acre lease (the size of the New York LA), the rent 
payment will be $238,050 per year ($3 times 79,350) 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 the approved COP specifies a maximum 
project size of 500 MW, the rent payment will be $95,220. 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 79,350 acres) = 
$95,220.
    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 the 
relinquished portion of the LA. Later relinquishments of any portion of 
the 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 is the greater of $5 per acre per year or $450 
per year.

Operating Fee

    For purposes of calculating the initial annual operating fee 
payment, 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 a 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 $50/MWh and an operating fee rate of 
0.02 would be calculated as follows:
[GRAPHIC] [TIFF OMITTED] TN31OC16.006

    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 New York LA 
to be offered 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 available at the start of 
each year of commercial operations on the lease. For example, if the 
lessee specifies 20 turbines in its COP, and each is rated by the 
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

[[Page 75434]]

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 full 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. Typically, BOEM's commercial wind leases specify an 
electric region and a source for referencing price information. 
However, at the current time, it is uncertain where a project's 
transmission cable may make landfall, so BOEM decided not to specify 
the electric region and source of price information at the lease 
issuance stage. The electric region of the wholesale power price index 
will encompass the location where the cable makes landfall. BOEM will 
specify the referencing price information upon approval of the COP. 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 of the New York 
LA must provide an initial lease-specific bond or other approved means 
of meeting BOEM's initial financial assurance requirements. The 
provisional winner 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 the provisionally winning bidder to discuss the 
financial assurance requirement with BOEM as soon as possible after the 
auction has concluded.
    BOEM will base the amount of all SAP, COP, and decommissioning 
financial assurance 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 lease, 
which BOEM has made available with this notice on its Web site at: 
https://www.boem.gov/New-York/.
    Bid Deposit: A bid deposit is an advance cash deposit submitted to 
BOEM in order to participate in the auction. Each bidder must submit a 
bid deposit of $450,000 no later than November 28, 2016. Any bidder 
that 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 BFF referenced in this FSN. BOEM has 
made a copy of the form available with this notice on its Web site at: 
https://www.boem.gov/New-York/. 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 bidders for previous lease 
sales to satisfy the requirements of this auction. Further, BOEM will 
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 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 
once BOEM has announced the provisional winner.
    Bidders will forfeit their bid deposit if they are the 
provisionally winning bidder and they fail to execute a lease pursuant 
to their provisionally winning bid. Exercising the LOR pursuant to the 
rules described in this notice constitutes a limited exception to this 
rule, wherein if BOEM notifies a bidder that it may revoke its 
provisionally winning bid immediately following the lease sale, and if 
the bidder revokes such bid within the allotted time, then that bidder 
will not forfeit its $450,000 bid deposit. If a bidder exercises its 
LOR in this manner, BOEM will reoffer the lease to the government 
authority that is the second-highest bidder. In this case, the 
government authority would inherit the obligation to execute a lease 
pursuant to the government authority's now-provisionally winning bid, 
forfeiting its bid deposit if it does not execute the lease within the 
required timeframe.
    If BOEM offers a lease pursuant to a provisionally winning bid, and 
that bidder fails to timely return the signed lease form, establish 
financial assurance, or pay the balance of its bid, BOEM will retain 
that bidder's $450,000 bid deposit. BOEM reserves the right to 
reconvene the panel to determine which bidder would have won in the 
absence of the provisionally winning bid, and to offer a lease to that 
bidder.
    Minimum Bid: The minimum bid is the lowest bid price BOEM will 
accept as a winning bid, and it is where BOEM will start the monetary 
bidding. BOEM has established a minimum bid of $2.00 per acre for this 
lease sale. Accordingly, the minimum bid will be $158,700 for Lease 
OCS-A 0512.

Auction Procedures

Multiple-Factor Bidding

    As authorized under 30 CFR 585.220(a)(4) and 585.221(a)(6), BOEM 
will use a multiple-factor auction format, with a multiple-factor 
bidding system, for this lease sale. 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 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 at any time.

[[Page 75435]]

10% Non-Monetary Credit for Government Authorities

    In response to public comments on the PSN, BOEM is offering a 10% 
non-monetary bid credit in this lease sale for government authorities. 
In order to be considered for this non-monetary credit, BOEM must 
receive a bidder's non-monetary package no later than November 28, 
2016, establishing that the bidder meets the definition of a government 
authority, below:
    Government Authority: A governmental entity, political subdivision 
thereof, or public benefit corporation exercising executive and/or 
regulatory functions within the United States.
    If a bidder wishes to establish itself as a government authority 
for the purposes of the auction, it must timely submit a non-monetary 
package for approval by BOEM. The non-monetary package may consist of 
new information to help a bidder demonstrate its status as a government 
authority, and/or may reference materials that the bidder has already 
submitted to BOEM to establish that the bidder is legally qualified to 
participate in the sale. If bidders wish to review what materials they 
have already submitted, they should contact Gina Best at 703-787-1341, 
as soon as practicable.
    Prior to the date of the auction, the panel will determine which 
bidders, if any, have qualified for the non-monetary credit. Bidders 
will be notified by email prior to the date of the auction if they have 
been granted a non-monetary credit. If the panel determines that no 
bidder is eligible to bid as a government authority and receive a 
credit, the auction will proceed with each bidder registered with no 
imputed credit. Bidders will not be notified whether other bidders have 
qualified for a non-monetary credit until after the bidding has 
concluded.
    Under the format for this sale, in each round a bidder may submit a 
bid proposal, i.e., a multiple-factor bid, for the LA. 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 the bid is represented by a 10% credit on the bid. This 
credit will be 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. 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.

Reservation of Limited Opportunity To Revoke (RLOR)

    In response to public comments on the PSN, BOEM is introducing the 
LOR as a feature of the New York lease sale. Each bidder may download, 
complete, sign and return the RLOR form from BOEM's Web site at https://www.boem.gov/New-York/. BOEM must receive the completed, signed RLOR no 
later than November 28, 2016. If BOEM does not receive the form by that 
date, BOEM will presume that the bidder does NOT wish to reserve the 
LOR. BOEM will consider extensions to this deadline only if BOEM 
determines that the failure to timely submit an RLOR was caused by 
events beyond the bidder's control.
    If a bidder opts into an LOR, and then becomes the provisional 
winner of the auction, it will be given a short opportunity just after 
the auction to revoke its provisionally winning bid without forfeiting 
its bid deposit of $450,000, if the second-place bidder is a government 
authority. Alternatively, bidders may choose not to opt-in. If a 
provisionally winning bidder does not reserve the LOR, that bidder will 
not be given an opportunity to revoke its provisionally winning bid 
following the sale without jeopardizing its bid deposit of $450,000. If 
a bidder fails to return the form in a timely manner, absent any 
extension granted by BOEM, it will be deemed to have opted out of its 
LOR. More information on LOR can be found in the ``Determining 
Provisional Winner'' section below.

The Auction

    The auction will be conducted in a series of rounds. At the start 
of each round, BOEM will state an asking price for the LA. If a bidder 
is willing to meet that asking price for the LA, it will indicate this 
by submitting a bid equal to the asking price, i.e., a live bid. If the 
bidder has earned a non-monetary credit, it will meet the asking price 
by submitting a multiple-factor bid--that is, a live bid that consists 
of a monetary element (90%) and a non-monetary element (10%), the sum 
of which equals the asking price. Bidders without a non-monetary credit 
will submit a cash bid equal to the asking price.
    To participate in any round of the auction, a bidder must have 
submitted a live bid in the previous round. As long as there are two or 
more live bids for the LA, the auction proceeds to the next round. 
Between rounds, BOEM will raise the asking price for the LA by an 
increment that it determines appropriate. Asking price increments are 
within BOEM's sole discretion, but are based on a number of factors, 
including the number of bidders still active in the auction and BOEM's 
best estimate of how many rounds may remain before the auction is 
resolved. BOEM also reserves the right to increase or decrease bidding 
increments between rounds, if it determines that a different increment 
is warranted to enhance the efficiency of the auction process.
    As the auction proceeds, a bidder retains its eligibility to 
continue bidding as long as that bidder submitted a live bid on the LA 
in the previous round. Between rounds, BOEM will release information 
indicating the number of live bids for the LA in the previous round of 
the auction (i.e., the level of demand) and the asking price for the LA 
in the upcoming round of the auction. Bidders may be bound by any of 
their bids until the auction results are finalized.

Exit Bidding

    In any round after the first round of the auction, a bidder may 
submit an exit bid that is higher than the previous round's asking 
price, but less than the current round's asking price. An exit bid must 
consist of a single offer price. If a bidder submits an exit bid, it is 
not eligible to participate in subsequent bidding rounds of the 
auction. During the auction, exit bids will be seen only by BOEM and 
not by other bidders.
    If the LA receives only exit bids in a round, BOEM will not raise 
the price and start another round, because no bidders would be eligible 
to bid in the next round.

Determining the Provisional Winner

    The auction will end in the first round in which one or zero live 
bids is received. If one live bid is received, that bid is the 
provisionally winning bid. If no live bids are received, then the 
highest exit bid received is the provisionally winning bid. If there is 
a tie for the highest exit bid, BOEM's tie-breaking procedures will 
resolve the tie. If no live or exit bids are received, then there is a 
tie among all bidders that submitted live bids at the most recent 
asking price, and BOEM's tie-breaking procedures will determine the 
provisionally winning bid.

LOR

    As noted, in response to public comments on the PSN, this lease 
sale includes an LOR. Ordinarily, if a provisionally winning bidder 
does not execute a lease pursuant to that provisionally winning bid, 
that bidder will forfeit its bid deposit. In this lease sale, a 
provisionally winning bidder will have a chance to revoke its

[[Page 75436]]

provisionally winning bid without this penalty, but only under the 
following circumstances:
    1. The provisionally winning bidder reserved the right to a LOR 
through a timely-submitted RLOR in advance of the auction; and
    2. The second highest bid was submitted by a government authority.
    If these two elements are satisfied, then BOEM will offer the 
provisionally winning bidder one hour to revoke its provisionally 
winning bid. If there is a tie for the second highest bid, including a 
government authority, the tie will be resolved and an LOR will be 
offered only if the government authority has the second-place bid 
following resolution of the tie.
    The provisionally winning bidder will be given precisely one hour 
to revoke, using the messaging tool in the auction system. If that 
bidder wishes to revoke, the message should consist of the following 
statement:
    ``We hereby revoke our provisionally winning bid for ATLW-6, 
pursuant to the Reservation of Limited Opportunity to Revoke form 
submitted previously.''
    If the statement above is not included verbatim in the message a 
bidder uses to exercise its limited right to revoke, BOEM may not 
accept the LOR. Once BOEM receives this message, it will consider the 
provisionally winning bid to be revoked. If the provisionally winning 
bidder revokes its bid, the government authority will then become the 
new provisionally winning bidder and will be subject to the conditions 
in 30 CFR 585.224. In this case, the provisionally winning bid will be 
the government authority's last bid for the LA.
    If the provisionally winning bidder does not revoke its bid within 
the designated hour, BOEM's requirements for the bidder will be the 
same as it would be for a sale without the LOR. Pursuant to 30 CFR 
585.224, once BOEM sends the lease copies to the bidder, the bidder 
must timely pay the balance of its bid, establish financial assurance, 
and properly sign and return the lease copies. If the bidder fails to 
do so, then BOEM may not issue the lease to that bidder, in which case 
the bidder would 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.
    If the highest bidder revokes its provisionally winning bid 
pursuant to an LOR, the government authority with the second-highest 
bid in the auction becomes the provisionally winning bidder and must 
follow all of BOEM's requirements contained in 30 CFR 585.224. The 
government authority would then need to execute a lease pursuant to its 
provisionally winning bid, or risk forfeiture of its bid deposit.
    BOEM will use its tie-breaking procedures to resolve any ties 
before determining whether the conditions have been met for offering a 
provisionally winning bidder a LOR. Ties are resolved by a random 
process. The auction system generates a random number for each bidder. 
In the event of a tie, these numbers are compared, and the bidder with 
the higher random number is deemed the provisional winner.
    Following the lease sale, the non-monetary panel will convene, 
review the auction record, and certify the results of the sale. Shortly 
thereafter, BOEM will notify the DOJ that it may begin its antitrust 
review pursuant to 43 U.S.C. 1337(c).
    If a bidder fails to execute a lease pursuant to a provisionally 
winning bid, BOEM may reoffer that lease to the next highest bidder. If 
the bidder that fails to execute is a government authority that had 
been declared the provisional winner after the exercise of a LOR, BOEM 
may first reoffer the lease to the bidder that had exercised the LOR. 
If BOEM reoffers the lease following a bidder's failure to execute a 
lease pursuant to a provisionally winning bid, the second bidder to 
which the lease is offered may decline the offer without forfeiting its 
bid deposit.

Additional Information Regarding the Auction Format

Bidder Authentication

    For the online auction, BOEM will require two-factor 
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 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 8:30 a.m. EST on December 15, 2016. 
Bidders may log in as early as 8:00 a.m. on that day. We recommend that 
bidders log in earlier than 8:30 a.m. on that day to ensure that any 
login issues are resolved prior to the start of the auction. Once 
bidders have logged in, they should review the auction schedule, which 
lists the 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 are posted;
     Bidders review the previous Round results and prepare 
their next Round bids; and
     Next Round bidding begins.
    The first round will last about 30 minutes, though 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 during the auction for 
updated times. Bidding will continue until about 6:00 p.m. each day. 
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. For example, BOEM may change the schedule at any time, 
including during the auction. If BOEM changes the schedule during the 
auction, it will use the messaging feature to notify bidders that a 
revision has been made, and direct bidders to the relevant page. BOEM 
will also use the messaging system for other changes and items of note 
during the auction.
    Bidders may place bids at any time during the round. At the top of 
the

[[Page 75437]]

bidding page, a countdown clock will show how much time remains in the 
round. Bidders have until the scheduled time to place bids. Bidders 
should do so according to the procedures described in this notice, and 
the Auction System Technical Supplement. No information about the round 
is available until the round has closed and results have been posted, 
so there should be no strategic 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-York/. The Auction System Technical 
Supplement describes auction procedures that are incorporated by 
reference in this notice, unless the procedures described in the 
Auction System Technical Supplement directly contradict this notice. In 
the event of a contradiction, this FSN is controlling.

Prohibition on Communications Between Bidders During Auction

    During the auction, and including one hour after the auction if LOR 
is triggered, bidders are prohibited from communicating with each other 
regarding their participation in the auction. Additionally, during the 
auction, and including one hour after the auction if LOR is triggered, 
bidders are prohibited from communicating to the general public, 
including, but not limited to, through social media, updated Web sites, 
or press releases, regarding any aspect of their participation or lack 
thereof in the auction.

Alternate Bidding Procedures

    Alternate Bidding Procedures enable a bidder that 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-York/.
    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 bidder. 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 any and all bids that do not satisfy the 
requirements and rules of the auction, the FSN, and all applicable 
regulations and statutes.

Anti-Competitive Review

    Bidding behavior in this sale is subject to Federal antitrust laws. 
Accordingly, following the auction, but before the acceptance of bids 
and the issuance of leases, BOEM will ``allow the Attorney General, in 
consultation with the Federal Trade Commission, 30 days to review the 
results of the lease sale.'' 43 U.S.C. 1337(c). If a 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 not to 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; 
or
     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 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 counsel.
    Process for Issuing the Lease: Once all post-auction reviews have 
been completed to BOEM's satisfaction, BOEM will issue three unsigned 
copies of the lease to the provisionally winning bidder. Within 10 
business days after receiving the lease copies, the provisionally 
winning bidder must:
    1. Sign 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-York/.
    BOEM will not execute a lease until the three requirements above 
have been satisfied, BOEM has accepted the provisionally winning 
bidder's financial assurance pursuant to 30 CFR 585.515, and BOEM has 
processed the provisionally winning bidder's payment.
    BOEM may extend the 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 provisionally 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 provisionally winning bidder will 
forfeit its bid deposit.
    Within 45 calendar 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-York/.
    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 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 its 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 determines may interfere with a 
fair and proper lease sale process. Such events may include, but are 
not limited to: Natural disasters (e.g.,

[[Page 75438]]

earthquakes, hurricanes, floods, blizzards), wars, riots, acts of 
terrorism, fire, strikes, civil disorder or other events of a similar 
nature. In case of such an event, BOEM will notify all 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 585.118(c) and 585.225. 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

    Consistent with the Freedom of Information Act (FOIA), BOEM will 
protect privileged or confidential information that you submit. 
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. Further, BOEM will not treat as 
confidential aggregate summaries of otherwise confidential information.

    Authority: This FSN is published pursuant to subsection 8(p) of 
the OCS Lands Act (43 U.S.C. 1337(p)) (``the Act''), as amended by 
section 388 of the Energy Policy Act of 2005 (EPAct), and the 
implementing regulations at 30 CFR part 585, including sections 211 
and 216.

    Dated: October 25, 2016.
Abigail Ross Hopper,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2016-26240 Filed 10-28-16; 8:45 am]
 BILLING CODE 4310-MR-P