Atlantic Wind Lease Sale 9 (ATLW-9) for Commercial Leasing for Wind Power on the Outer Continental Shelf in the Carolina Long Bay Area-Proposed Sale Notice, 60274-60283 [2021-23801]

Agencies

• DEPARTMENT OF THE INTERIOR
• Bureau of Ocean Energy Management

[Federal Register Volume 86, Number 208 (Monday, November 1, 2021)]
[Notices]
[Pages 60274-60283]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-23801]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2021-0078]


Atlantic Wind Lease Sale 9 (ATLW-9) for Commercial Leasing for 
Wind Power on the Outer Continental Shelf in the Carolina Long Bay 
Area--Proposed Sale Notice

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Proposed sale notice; request for comments.

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SUMMARY: This document is the proposed sale notice (PSN) for the sale 
of a commercial wind energy lease on the Outer Continental Shelf (OCS) 
in the Carolina Long Bay area offshore North Carolina (Lease Area). The 
Bureau of Ocean Energy Management (BOEM) proposes to offer a single 
lease using a multiple-factor bidding auction format. The PSN contains 
information pertaining to the areas available for leasing, certain 
provisions and conditions of the lease, auction details, lease forms, 
criteria for evaluating competing bids, award procedures, appeal 
procedures, and lease execution procedures. The issuance of a lease 
resulting from this sale, if any, would not constitute an approval of 
project-specific plans to develop offshore wind energy. Such plans, if 
submitted by the lessee, would be subject to subsequent environmental, 
technical, and public reviews prior to a decision on whether the 
proposed development should be authorized.

DATES: Comments should be submitted electronically or postmarked no 
later than January 3, 2022.
    Prospective bidders in the proposed lease sale must submit 
qualification materials by the end of the 60-day comment period for 
this PSN. Qualification materials must be postmarked no later than 
January 3, 2022.

ADDRESSES: Submit comments on the PSN in one of the following ways:
     Federal eRulmaking Portal: https://www.regulations.gov. In 
the search box on web page, enter BOEM-2021-0078 and click ``search.'' 
Follow the instructions to submit public comments.
     Mail: In written form, delivered by mail or delivery 
service, enclosed in an envelope labeled ``Comments on Carolina Long 
Bay PSN'' and addressed to: Office of Renewable Energy Programs, Bureau 
of Ocean Energy Management, 45600 Woodland Road, VAM-OREP, Sterling, 
Virginia 20166.
    Qualifications Materials: Prospective bidders submit qualification 
materials to Casey Reeves, BOEM Office of Renewable Energy Programs, 
45600 Woodland Road, VAM-OREP, Sterling, Virginia 20166, (703) 787-
1671, or [email protected].
    For more information regarding the submission of public comments 
and qualification materials, see section V under the caption 
Supplementary Information.

FOR FURTHER INFORMATION CONTACT: Casey Reeves, BOEM Office of Renewable 
Energy Programs, 45600 Woodland Road, VAM-OREP, Sterling, Virginia 
20166, (703) 787-1671, or [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    a. Call for Information and Nominations: On December 13, 2012, BOEM 
published a North Carolina call for information and nominations (77 FR 
74204) (``Call''). On February 5, 2013, BOEM reopened the comment 
period for the Call to allow for additional public input. The Call 
contained three proposed call areas entitled ``Wilmington-East,'' 
``Wilmington-West,'' and ``Kitty Hawk.'' BOEM received comments from 
the general public, the fishing industry, industry groups, offshore 
wind developers, non-governmental organizations, universities, other 
stakeholders, and Federal, State, and local agencies. The subjects 
receiving the most comments were impacts to military operations, 
impacts to North Atlantic right whale critical habitat, visual impacts, 
and impacts to tourism from the Wilmington-West Call Area. Four 
offshore wind developers submitted nominations for the Wilmington-East 
Call Area.
    b. Area Identification: After the close of the Call comment period 
on March 7, 2013, BOEM initiated the area identification process (Area 
ID) by reviewing the input received. Through the Area ID process, BOEM 
considered the following non-exclusive list of information sources: 
Comments and nominations received on the Call; information from the 
Regional Carolina Long Bay Intergovernmental Task Force; input from 
North Carolina and South Carolina State agencies; input from Federal 
agencies; comments from relevant stakeholders and ocean users, 
including the maritime community, offshore wind developers, and the 
commercial fishing industry; State and local renewable energy goals; 
and domestic and global offshore wind market and technological trends.
    BOEM also considered multiple existing uses of the North Carolina 
offshore area in developing the call areas and wind energy areas 
(WEAs). BOEM found that existing uses having the highest potential to 
interact with offshore wind energy development in the call areas are 
(i) North Atlantic right whale migration routes; (ii) maritime 
navigation; and (iii) Department of Defense (DoD) activities.
    BOEM completed the Area ID on August 7, 2014, by identifying the 
following three WEAs within the call areas: Wilmington East, Wilmington 
West, and Kitty Hawk. The Area ID announcement and map of the WEAs are 
available at: https://www.boem.gov/sites/default/files/renewable-energy-program/State-Activities/NC/NC_AreaID_Announcement_.pdf.
    c. Environmental Reviews: On December 13, 2012, BOEM published a 
notice of intent to prepare an environmental assessment (EA) to 
consider potential environmental consequences of site characterization 
activities (e.g., biological, archeological, geological, and 
geophysical surveys and core samples) and site assessment activities 
(e.g., installation of meteorological towers or buoys) associated with 
issuing wind energy leases in the call areas. As part of the EA 
process, BOEM sought comments on the issues and alternatives that 
should inform the EA and received approximately 47 comments, which can 
be found at https://www.regulations.gov under Docket No. BOEM-2012-0090. 
A notice of availability of the EA was published on January 23, 2015, 
to initiate a 30-day public comment period (80 FR 3621). The EA was 
subsequently revised based on comments received during the comment 
period and public information meetings. The revised EA and the finding 
of no significant impact are available at: https://www.boem.gov/sites/default/files/renewable-energy-program/State-Activities/NC/NC-EA-Camera-FONSI.pdf.
    Concurrently with its preparation of the EA, BOEM conducted 
consultations under the Endangered Species Act (ESA), the Magnuson-
Stevens Fishery Conservation and Management Act, and the Coastal Zone 
Management Act.

[[Page 60275]]

BOEM prepared and executed a programmatic agreement (PA) to guide its 
consultations under section 106 of the National Historic Preservation 
Act. The PA provides for consultations to continue through BOEM's 
decision-making process regarding the issuance of leases on the OCS. 
Also included in the PA is BOEM's phased identification and evaluation 
of historic properties.
    On August 13, 2021, BOEM announced its intent to prepare a 
supplemental EA to the Commercial Wind Lease Issuance and Site 
Assessment Activities on the Atlantic Outer Continental Shelf Offshore 
North Carolina--Revised Environmental Assessment, which was originally 
published on September 17, 2015. This announcement opened a 30-day 
comment period that closed on September 13, 2021. The supplemental EA 
will evaluate current science, studies, circumstances, and other 
information relevant to reasonably foreseeable environmental impacts 
from site characterization activities (i.e., shallow hazards, 
geological, geotechnical, archeological, and biological surveys of the 
lease area and potential cable routes) and site assessment activities 
(i.e., installation and operation of meteorological buoys) associated 
with issuing wind energy leases in the Wilmington East WEA. This new 
information includes a recent marine cultural resources survey, changes 
in the status of some ESA-listed species, the listing of new endangered 
species, and the designation of the North Atlantic right whale critical 
habitat. The supplemental EA and consultations will be concluded before 
the final sale notice (FSN).

II. Area Proposed for Leasing

    The area available for sale is proposed to be auctioned as a single 
lease, Lease OCS-A 0545:

------------------------------------------------------------------------
                                                   Lease area
                 Lease area name                       ID        Acres
------------------------------------------------------------------------
Wilmington East.................................           OCS-A127,865
------------------------------------------------------------------------

    The proposed lease area includes the majority of the Wilmington 
East WEA. BOEM requests input on potentially subdividing the Wilmington 
East Lease Area into as many as three lease areas from the existing 
127,865 acres.
    BOEM is aware of potential conflicts with the U.S. Coast Guard 
(USCG) in portions of the Wilmington East Lease Area. BOEM is working 
closely with USCG and DoD to ensure the final lease area is 
deconflicted and suitable for offshore wind energy development. For 
more information regarding DoD's evaluation, please see the February 
13, 2020, letter from the DoD Military Aviation and Installation 
Assurance Siting Clearinghouse to BOEM posted on our website: https://www.boem.gov/regional-carolina-long-bay-intergovernmental-renewable-energy.
    A description of the proposed Lease Area can be found in addendum 
``A'' of the proposed lease, which BOEM has made available with this 
notice on its website at: https://www.boem.gov/regional-carolina-long-bay-intergovernmental-renewable-energy.
    a. Map of the Area Proposed for Leasing: A map of the Lease Area, 
and GIS spatial files X, Y (eastings, northings) UTM Zone 18, NAD83 
Datum, and geographic X, Y (longitude, latitude), NAD83 Datum can be 
found on BOEM's website at: https://www.boem.gov/regional-carolina-long-bay-intergovernmental-renewable-energy.
    b. Potential Future Restrictions to Ensure Navigational Safety:
    i. USCG Navigational Safety Measures: Potential bidders should note 
that portions of the Wilmington East Lease Area may not be available 
for future development (i.e., installation of wind facilities) because 
of navigational safety concerns. In accordance with the Ports and 
Waterways Safety Act, USCG has published an advance notice of proposed 
rulemaking (ANPRM), which includes traffic lanes in the vicinity of the 
Wilmington East Lease Area. This ANPRM included a shipping safety 
fairway to accommodate vessel traffic traveling across the Carolina 
Long Bay Area from Charleston, South Carolina, to ports on the U.S. 
Mid- and North Atlantic coast. The shipping safety fairway overlaps 
with the proposed Wilmington East Lease Area. The size and boundaries 
of the Wilmington East Lease Area could change between now and 
publication of a FSN, depending on the outcome of additional 
discussions between BOEM and USCG. BOEM may require additional 
mitigation measures upon review of a construction and operations plan 
(COP) when the Lessee's site-specific navigational safety risk 
assessment is available to inform BOEM's decision-making. In addition, 
in 2020, the USCG announced that it would be conducting a supplemental 
Port Access Route Study (PARS). This supplemental PARS may result in 
additional north to south navigational mitigation measures at the COP 
review stage.
    ii. Vessel Transit Corridors: Members of the fishing community have 
requested that offshore wind energy facilities be designed in a manner 
that, among other things, provides for safe transit to fishing grounds 
where relevant. The information currently available does not indicate 
that transit corridors are warranted, but BOEM may nonetheless consider 
designating portions of the lease as transit corridors. Bidders should 
be aware that a lease stipulation may be included in the FSN that 
addresses transit corridors, pending the outcome of additional 
discussions with ocean users and stakeholders and consideration of 
comments submitted in response to this PSN.
    c. Potential Future Restrictions to Mitigate Potential Conflicts 
with Department of Defense Activities: Prospective bidders should be 
aware of potential conflicts with existing uses of the OCS by DoD. BOEM 
coordinates with DoD throughout the leasing process. A February 13, 
2020, letter from DoD on the BOEM website summarizes our most recent 
consultations: https://www.boem.gov/regional-carolina-long-bay-intergovernmental-renewable-energy.
    i. Air Surveillance and Radar: The North American Aerospace Defense 
Command mission may be affected by the development of the Lease Area. 
BOEM will coordinate with DoD and the Lessee to deconflict these 
potential impacts throughout the project review stage. Mitigation 
measures or terms and conditions of a plan approval may result from 
this coordination effort.

III. Participation in the Proposed Lease Sale

    a. Bidder Participation: Entities wishing to participate in the 
proposed ATLW-9 lease sale must submit the required qualification 
materials by the end of the 60-day comment period for this PSN.
    b. Affiliated Entities: On the bidder's financial form discussed in 
section V.(c)(i) below, eligible bidders must list any other eligible 
bidders with whom they are affiliated. Affiliated eligible bidders are 
not permitted to compete against each other in the lease sale and must 
decide prior to the auction which eligible bidder (if any) will 
participate. If two or more affiliated bidders seek to participate in 
the auction, BOEM may disqualify some or all such bidders from the 
auction.
    BOEM considers two entities to be affiliated if (a) one entity (or 
its parent or subsidiary) has or retains any right, title, or interest 
in the other entity (or its parent or subsidiary), including any 
ability to control or direct actions with respect to such entity, 
either directly or indirectly, individually or through any other party; 
or (b) the entities are both direct or indirect subsidiaries of the 
same parent company.

[[Page 60276]]

IV. Questions for Stakeholders

    Stakeholders are encouraged to comment on any matters related to 
this lease sale that are of interest or concern to them. However, BOEM 
has identified certain issues as particularly important in developing 
this lease sale and encourages commenters to address these issues 
specifically.
    a. Number, size, orientation, and location of the proposed lease 
areas: BOEM is requesting comment on the number of leases that should 
be offered within the Lease Area, the size and orientation of the Lease 
Area, as well as any portions of the Lease Area that should be 
prioritized for inclusion or exclusion from this lease sale or future 
lease sales.
    b. Transit corridors: BOEM welcomes comments on the potential need 
for including defined transit corridors within the proposed Lease Area 
and the degree to which such corridors might meet potential users' 
needs.
    c. What existing uses would be affected by the development of the 
proposed Lease Area? If transit corridors are warranted, what would be 
the preferred placement and orientation (length, width, etc.) that 
would facilitate continuance of existing uses? BOEM asks commenters to 
submit technical and scientific data in support of their comments.
    d. Benefits to underserved communities: Executive Order 13985, 
``Advancing Racial Equity and Support for Underserved Communities 
Through the Federal Government,'' directs advancement of equity for 
all, including people of color and others who have been historically 
underserved, marginalized, and adversely affected by persistent poverty 
and inequality. Executive Order 14008, ``Tackling the Climate Crisis at 
Home and Abroad,'' establishes a policy to secure environmental justice 
and spur economic opportunity for disadvantaged communities through 
investing and building a clean energy economy and making environmental 
justice part of every agency's mission.
    To the extent of its statutory and regulatory authorities, BOEM is 
considering lease stipulations to ensure communities, particularly 
underserved communities, are engaged early and often throughout the 
offshore wind energy development process and to encourage direct 
investments in underserved communities that include, but are not 
limited to:
    i. Workforce training and development.
    ii. contracting with and supporting the development of minority- 
and women-owned businesses.
    iii. programs that promote and deliver environmental justice.
    BOEM invites comment on the appropriate mechanisms, evaluation 
metrics, and valuation of these additional lease requirements. 
Commenters are encouraged to describe how these or similar measures 
would further development of the proposed Lease Area and the purposes 
of OCS Lands Act. BOEM requests commenters provide references to any 
studies that support their recommendations.
    e. Bidding credits: As authorized under 30 CFR 585.220(a)(4) and 
585.221(a)(6), BOEM proposes to use a multiple-factor auction format, 
with a multiple-factor bidding system, for this lease sale. Under this 
system, BOEM would consider a combination of a monetary bid and bidding 
credits in determining the outcome of the auction. BOEM would appoint a 
panel of BOEM employees to review the non-monetary component and to 
verify the results of the lease sale. BOEM would reserve the right to 
change the composition of this panel at any time.
    i. The proposed bidding credit would allow bidders to receive a 
credit of up to 20 percent off their winning bid in exchange for 
financial commitments to a workforce training program or to development 
of a domestic supply chain. To qualify, the winning bidder would be 
required to financially commit at least 80 percent of the bidding 
credit value toward a workforce training program or development of a 
domestic supply chain. For example, a winning bidder with a high bid of 
$31.25 million could receive a credit of $6.25 million toward their 
winning bid in exchange for a $5 million (80 percent of $6.25 million) 
commitment to a workforce training or development of the domestic 
supply chain. Bidders could choose to limit their commitment (20 
percent of bid up to $X.0 million) or simply commit to a bidding credit 
worth 20 percent of their high bid.
    ii. The qualifying programs for the workforce training credit would 
contribute to well-trained personnel pursuant to congressional policy 
under 43 U.S.C. 1332(6), which states that operations on the OCS should 
be conducted in a safe manner by well-trained personnel. Workforce 
training would also promote ``expeditious and orderly development'' as 
called for by 43 U.S.C. 1332(3).
    iii. The qualifying programs for the domestic supply chain credit 
would contribute to the development of a domestic supply chain, which 
would facilitate congressional policy set forth in 43 U.S.C. 1332(3) to 
promote expeditious and orderly development on the OCS.
    iv. Bidders who are interested in pursuing bidding credits would be 
able to choose to commit to workforce training programs, domestic 
supply chain initiatives, or a combination of both. Payment fulfilling 
the commitment could be deferred until submission of the facility 
design report (FDR) to BOEM. Documentation of the lessee's contribution 
and of how the commitment would benefit workforce training or the 
domestic supply chain would be due no later than the lessee's first 
FDR. By deferring the payment until the FDR, the lessee would be able 
to identify programs or recipients with the greatest potential to 
expedite or facilitate orderly OCS renewable energy development.
    v. Examples of programs that would qualify for the workforce 
training credit include specific job and workforce training, union 
apprenticeships, labor management training partnerships, stipends for 
workforce training, or other technical training programs focused on 
providing skills needed for the construction, maintenance, or operation 
of offshore wind energy projects. BOEM encourages lessees to maximize 
training opportunities for individuals from underserved communities.
    vi. Examples of programs that would qualify for the domestic supply 
chain credit include commitments to technical assistance grants to help 
U.S. manufacturers re-tool or certify (e.g., ISO-9001) for offshore 
wind manufacturing, a non-equity investment in the development of a 
Jones Act-compliant wind turbine installation vessel, a bonding support 
reserve fund accessed by disadvantaged businesses, or other non-equity 
contributions to efforts to build a U.S. domestic supply chain 
supporting the offshore wind industry. BOEM encourages lessees to 
maximize supply chain opportunities for disadvantaged business 
enterprises. Commenters are encouraged to describe how these or similar 
measures would further development of the proposed Lease Area and the 
purposes of OCS Lands Act. BOEM requests commenters provide references 
to any studies that support their recommendations.
    vii. Documentation: If a lease is awarded pursuant to a winning bid 
that includes the workforce training or supply chain development 
commitment or both, the lessee would be required to provide written 
documentation to BOEM demonstrating payment of the full commitment no 
later than submission of the lessee's first FDR.
    viii. Enforcement: The amount and conditions of the commitment 
would be

[[Page 60277]]

included in a lease addendum and would bind the lessee and all future 
assignees of the lease. If a lessee or assignee fails to satisfy its 
commitment obligations before submission of the FDR or relinquishes or 
otherwise fails to develop the lease for any reason by the 10th 
anniversary date of lease execution or another date agreed to by BOEM, 
the original lessee and all assignees will owe an amount corresponding 
to the awarded bidding credit, immediately due and payable to the 
Office of Natural Resources Revenue with interest from the date of 
lease execution. In that circumstance, the bidding credit has been 
forfeited, and the lessee would be obligated to pay the amount of the 
credit not earned, resulting in payment of the full amount of the 
accepted bid.
    f. BOEM invites comment on the appropriate mechanisms, evaluation 
metrics, recipient program examples, and relative value of bidding 
credits for workforce training and supply chain development.
    g. Native American Tribes, ocean users, and stakeholder engagement: 
In an effort to require early and regular lessee engagement with 
affected stakeholders, BOEM is proposing a lease stipulation that would 
require lessees to provide a semi-annual (i.e., every 6 months) 
progress report that summarizes engagement with Native American Tribes 
and ocean users potentially affected by proposed activities on the 
lease or proposed project easement. The progress report would identify 
and describe: All existing users; the lessee's engagement with those 
users; efforts to avoid, minimize, or mitigate any conflict between the 
existing users and the lessee; disproportionate impacts to 
environmental justice communities; and planned next steps to engage 
those users and address identified conflicts. The lease stipulation 
specifically would require coordination with the commercial fishing 
industry and consideration of potential conflicts prior to proposing a 
wind turbine layout in the COP. BOEM seeks comment on this concept 
generally, as well as comment on the contents and timing of such 
reports.
    h. Coordinated engagement: BOEM seeks comments on methods to 
improve coordination and engagement among lessees, federally recognized 
Tribes, and other stakeholders. Specifically, BOEM is soliciting input 
on how to improve the frequency, duration, and sustainability of 
collaborative engagement among these parties, as well as the preferred 
form it should take (in-person, webinar, facilitated meeting, etc.). 
BOEM recognizes its responsibility under Executive Order 13175 to 
conduct government-to-government consultations with Tribal governments. 
Coordinated engagement between federally recognized Tribes and lessees 
that may be required in a future lease would be in addition to BOEM's 
responsibilities. To illustrate the intent of this question, one 
possible lease term to facilitate coordinated engagement could be to 
require lessees to hold coordination meetings at regular intervals 
throughout the year (i.e., quarterly, biannually, annually, etc.). 
During these meetings, lessees would share information and updates 
about their activities with federally recognized Tribes and other 
stakeholders and solicit feedback and input about lessee activities. 
These meetings would not substitute for government-to-government 
meetings between Tribes and Federal agencies, including BOEM.
    i. Prescribed layouts: BOEM seeks comment about whether BOEM should 
consider prescribing uniform and aligned turbine layouts in the Lease 
Area. Would the establishment of uniform turbine layouts negate the 
need for established transit corridors?
    j. Rent: BOEM is proposing to simplify the calculation for rental 
fees once commercial operations have begun. The simplification would 
divide the leased area into ``generating'' and ``non-generating'' 
acreages and would use the ``non-generating'' acreage as the basis for 
the rental calculation. BOEM welcomes comments on the proposed rental 
calculation changes.
    k. Industry standards for environmental protection: Are there new 
industry standards (e.g., technology standards, vessel standards, etc.) 
for environmental protection for any phase of development that BOEM 
should consider?

V. Deadlines and Milestones

    This section describes the major deadlines and milestones in the 
auction process from publication of this PSN to potential execution of 
the lease pursuant to this sale.
    a. The PSN Comment Period:
    i. Submit Comments: The public is invited to submit comments during 
this 60-day period, which expires on January 3, 2022. All comments 
received or postmarked during the comment period will be made available 
to the public and considered by BOEM prior to publication of the FSN.
    ii. Public Auction Seminar: BOEM will host a public seminar to 
discuss the lease sale process and the auction format. The time and 
place of the seminar will be announced by BOEM and published on the 
BOEM website at https://www.boem.gov/regional-carolina-long-bay-intergovernmental-renewable-energy.
    Neither registration nor RSVP is required to attend.
    iii. Submit Qualifications Materials: All qualification materials 
must be received by BOEM by January 3, 2022. This includes materials 
sufficient to establish a company's legal, technical, and financial 
qualifications pursuant to 30 CFR 585.106-.107. To qualify to 
participate in this lease sale, qualification materials should be 
developed in accordance with the guidelines available at https://www.boem.gov/Renewable-Energy-Qualification-Guidelines/. If you wish to 
protect the confidentiality of your comments or qualification 
materials, clearly mark the relevant sections and request that BOEM 
treat them as confidential. Please label privileged or confidential 
information with the caption ``Contains Confidential Information'' and 
consider submitting such information as a separate attachment. 
Treatment of confidential information is addressed in section XXI 
entitled ``Protection of Privileged or Confidential Information.'' 
Information that is not labeled as privileged or confidential would be 
regarded by BOEM as suitable for public release.
    b. End of PSN Comment Period to FSN Publication:
    i. Review Comments: BOEM will review all comments submitted in 
response to the PSN during the comment period.
    ii. Finalize Qualifications Reviews: Prior to the publication of 
the FSN, BOEM will complete its review of bidder qualification 
materials submitted during the PSN comment period. The final list of 
eligible bidders will be published in the FSN.
    iii. Prepare the FSN: BOEM will prepare the FSN by updating 
information contained in the PSN where appropriate.
    iv. Publish FSN: BOEM will publish the FSN in the Federal Register.
    c. FSN Waiting Period: During this period, qualified bidders must 
take several steps to remain eligible to participate in the auction.
    i. Bidder's Financial Form (BFF): Each bidder must submit a BFF to 
BOEM to participate in the auction. BOEM must receive each bidder's BFF 
no later than the date listed in the FSN. BOEM may consider extensions 
to this deadline only if BOEM determines that the failure to timely 
submit a BFF was caused by events beyond the bidder's control. The BFF 
can be downloaded at: https://www.boem.gov/regional-

[[Page 60278]]

carolina-long-bay-intergovernmental-renewable-energy.
    Once BOEM has processed a bidder's BFF, the bidder may log into 
pay.gov and submit a bid deposit. For purposes of this auction, BOEM 
will not consider BFFs submitted by bidders for previous lease sales. 
You may submit your BFF electronically in PDF format to the mailbox at 
[email protected]. Digital signatures, affixed to paper and 
digital copies, are acceptable until further notice.
    a. Please accompany your submission with a transmittal letter on 
company letterhead.
    b. BOEM prefers that your BFF be submitted using a company email 
address.
    c. The BFF must be executed by an authorized representative listed 
in the bidder's legal qualifications. Each bidder is required to sign 
the self-certification in the BFF truthfully, under threat of criminal 
penalty for false statements in accordance with 18 U.S.C. 1001 (fraud 
and false statements).
    d. BOEM will consider the date an emailed submission was received 
in the mailbox [email protected] as the official receipt (filed) 
date.
    e. Additional information regarding BFF may be found below in 
section IX ``Bidder's Financial Form.''
    ii. Bid Deposit: Each qualified bidder must submit a bid deposit of 
$2,000,000 no later than the date specified in the FSN. Further 
information about bid deposits can be found below in section X ``Bid 
Deposit.''
    d. Mock Auction: BOEM will hold a mock auction that is open only to 
qualified bidders who have met the requirements and deadlines for 
auction participation, including submission of the bid deposit. Final 
details of the mock auction will be provided in the FSN.
    e. The Auction: BOEM, through its contractor, will conduct the 
auction as described in the FSN. The auction will occur no sooner than 
30 days following publication of the FSN in the Federal Register. The 
estimated timeframes described in this PSN assume the auction will 
occur approximately 45 days after FSN publication. Final dates will be 
included in the FSN. BOEM will announce the provisional winner of the 
lease sale after the auction ends.
    f. From the Auction to Lease Execution:
    i. Notice and Refunds to Non-Winners: Once the provisional winner 
has been announced, BOEM will notify the other bidders, include a 
written explanation of why they did not win, and return their bid 
deposits.
    ii. Department of Justice (DOJ) Review: DOJ will have 30 days in 
which to conduct an antitrust review of the auction, pursuant to 43 
U.S.C. 1337(c).
    iii. Delivery of the Lease: BOEM will send three copies of the 
lease to the winning bidder, with instructions on how to sign the 
lease. The winning bidder must pay the first year's rent within 45-
calendar days after receiving the lease copies.
    iv. Return the Lease: Within 10-business days of receiving the 
lease copies, the winning bidder must file financial assurance, pay any 
outstanding balance of its bonus bids (i.e., winning monetary bid less 
the applicable non-monetary bidding credit and bid deposit), and sign 
and return the three lease copies. A winning bidder may request a 
deadline extension. BOEM may grant the request if BOEM determines the 
cause of the delay was beyond the winning bidder's control pursuant to 
30 CFR 585.224(e).
    v. Execution of Lease: Once BOEM has received the signed lease 
copies and verified that all other required obligations have been met, 
BOEM will determine, in its discretion, whether to sign and execute the 
lease.

VI. Withdrawal of Blocks

    BOEM reserves the right to withdraw all or portions of the Lease 
Area prior to executing the lease with the winning bidder.

VII. Lease Terms and Conditions

    BOEM has made available proposed terms, conditions, and 
stipulations for the commercial lease that will be offered through this 
proposed sale. BOEM reserves the right to require compliance with 
additional terms and conditions associated with approval of a site 
assessment plan (SAP) and COP. The proposed lease is on BOEM's website 
at: The lease includes the following attachments:
    1. Addendum A (``Description of Leased Area and Lease 
Activities'');
    2. Addendum B (``Lease Term and Financial Schedule'');
    3. Addendum C (``Lease-Specific Terms, Conditions, and 
Stipulations'');
    4. Addendum D (``Project Easement''); and
    5. Addendum E (``Rent Schedule'').
    Addenda A, B, and C provide detailed descriptions of lease terms 
and conditions. Addendum D will be completed at the time of COP 
approval or approval with modifications. Addendum E will be completed 
after COP approval or approval with modifications. After considering 
comments on the PSN and proposed lease, BOEM will publish final lease 
terms and conditions in the FSN.
    a. Required Plans for Potential Development of Executed Lease: 
Under 30 CFR 585.601, if site assessment activities will be conducted, 
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.
    b. Proposed New or Revised Lease Stipulations: BOEM proposes to add 
or revise the following lease stipulations or provisions from previous 
commercial leases:
    i. Fisheries Communication Plan: The requirement for the fisheries 
communication plan (FCP) has been amended to specify that the FCP must 
include discussions with fisheries stakeholders regarding any planned 
facilities within 120 days of lease execution.
    ii. Native American Tribes Communication Plan: BOEM has added a 
lease stipulation requiring the lessee to develop a Native American 
Tribes Communication Plan (NATCP). The NATCP would require the lessee 
to designate a Tribal liaison responsible for communicating with 
federally recognized Tribes, to provide BOEM and federally recognized 
Tribes with a draft NATCP, and to hold a meeting with federally 
recognized Tribes to discuss the NATCP within 120 days of lease 
execution.
    iii. Protected Species: In October 2018, BOEM initiated ESA section 
7 formal consultation with the National Marine Fisheries Service (NMFS) 
to update the project design criteria and best management practices to 
be more consistent with recent incidental harassment authorizations 
(IHAs) issued by NMFS under the Marine Mammal Protection Act for site 
survey and data collection activities. In January 2020, BOEM and NMFS 
agreed to convert the formal consultation to a programmatic informal 
consultation limited to surveys and installation of met buoys 
associated with a lease. Activities include geophysical and 
geotechnical surveys and the installation and decommissioning of met 
buoys in support of offshore wind energy projects.
    Mitigation measures adopted during the consultation rely upon the 
most up-to-date science and mirror those included in recent IHAs. 
Adopting these measures would reduce the number of requests by the 
lessee to modify its lease stipulations consistent with its respective 
NMFS-issued IHAs, which in

[[Page 60279]]

turn reduces compliance burdens on the lessee and BOEM. Accordingly, 
the lease stipulations would no longer specify exclusion zones for 
sound propagation from geophysical survey equipment, vessel strike 
avoidance measures, or protected species observer procedures, all of 
which would be specified in the outcome of the most up-to-date 
consultation.
    iv. Site Characterization: BOEM updated language regarding survey 
plans and pre-survey meetings (section 2.1 of addendum C to the 
proposed lease). BOEM proposes to make the pre-survey meeting between 
the lessee and BOEM optional at BOEM's discretion. BOEM also recommends 
removing the requirement for lessees to meet with BOEM prior to holding 
Tribal pre-survey meetings. The change would allow lessees more 
flexibility scheduling Tribal pre-survey meetings, possibly holding 
them earlier and allowing greater opportunity for Tribal input.
    v. Siting Conditions: BOEM included a lease stipulation that 
outlines situations when lessees may not construct surface facilities.
    vi. Operating Fee: BOEM proposes several simplifications to the 
operating fee consistent with the recently proposed changes for future 
New York Bight leases. The changes include eliminating the inflation 
adjustment, moving from a weighted peak and off-peak power price to a 
simple hourly average, and eliminating the 10 percent limit to the 
capacity adjustment every 5 years. These changes are designed to 
simplify the operating fee calculation and are expected to have minimal 
impact on operating fee revenues paid by the lessee. BOEM also proposes 
simplifying the capacity formulation and utilizing the nameplate 
capacity in the fabrication and installation report (FIR) for the 
operating fee calculation.
    vii. Project Labor Agreements: BOEM proposes a lease stipulation 
which would require the lessee to make reasonable efforts to enter into 
a project labor agreement (PLA) covering the construction stage of any 
project proposed for the leased area. The proposed stipulation is 
responsive to Executive Order 14008 and would support BOEM's 
achievement of the following OCS Lands Act policies:
    i. Expeditious and orderly development (43 U.S.C. 1332(3));
    ii. Safe operations conducted by well-trained personnel (43 U.S.C. 
1332(6));
    iii. Any activity is carried out in a manner that provides for 
safety (43 U.S.C. 1337(p)(4)(A)); and
    iv. Fair return (43 U.S.C. 1337(p)(2)(A)).
    PLAs may support the achievement of these goals--including 
expeditious development and potentially more years of operating fee 
receipts.
    viii. Stakeholder and Ocean User Engagement Summary: BOEM proposes 
that the lessee include a stakeholder and ocean user engagement summary 
as part of their progress reporting requirements (see section 2.2 of 
addendum C of the lease). This summary would include a description of 
all existing users, engagement activities with those users during the 
reporting period, and a description of efforts to minimize any conflict 
between the existing users and the lessee.

VIII. Lease Financial Terms and Conditions

    This section provides an overview of the required annual payments 
and financial assurances under the lease. Please see the proposed lease 
for more information.
    a. Rent: Pursuant to 30 CFR 585.224(b) and 585.503, the first 
year's rent payment of $3 per acre is due within 45-calendar days after 
the lessee receives the lease copies from BOEM. Thereafter, annual rent 
payments are be due on the anniversary of the effective date of the 
lease (the ``Lease Anniversary''). Once commercial operations under the 
lease begin, BOEM will charge rent only for the portions of the Lease 
Area remaining undeveloped (i.e., non-generating acreage). For the 
127,865-acre Lease Area of OCS-A 0545, the rent payment will be 
$383,595 per year until commercial operations begin.
    If the lessee submits an application for relinquishment of a 
portion of its leased area within the first 45-calendar days after 
receiving the lease copies from BOEM and BOEM approves that 
application, no rent payment would be due on the relinquished portion 
of the lease area. Later relinquishments of any portion of the lease 
area would reduce the lessee's rent payments starting in the year 
following BOEM's approval of the relinquishment.
    The lessee also must pay rent for any project easement associated 
with the lease. Rent commences on the date that BOEM approves the COP 
(or modification thereof) that describes the project easement as 
outlined in 30 CFR 585.508. Annual rent for a project easement that is 
200 feet wide, centered on the transmission cable, will be $70 per 
statute mile. For any additional acreage, the lessee must pay the 
greater of $5 per acre per year or $450 per year.
    b. Operating Fee: For purposes of calculating the initial annual 
operating fee payment under 30 CFR 585.506, BOEM applies an operating 
fee rate to a proxy for the wholesale market value of the electricity 
expected to be generated from the project during its first 12 months of 
operations. This initial payment will be prorated to reflect the period 
between the commencement of commercial operations and the Lease 
Anniversary. The initial annual operating fee payment will be due 
within 45 days of the commencement of commercial operations. 
Thereafter, subsequent annual operating fee payments will be due on or 
before the Lease Anniversary.
    The subsequent annual operating fee payments will be calculated by 
multiplying the operating fee rate by the imputed wholesale market 
value of the projected annual electric power production. For the 
purposes of this calculation, the imputed market value will be the 
product of the project's annual nameplate capacity, the total number of 
hours in the year (8,760), the capacity factor, and the annual average 
price of electricity derived from a regional wholesale power price 
index. For example, the annual operating fee for a 1,622 megawatt (MW) 
wind facility operating at a 40 percent capacity (i.e., capacity factor 
of 0.4) with a regional wholesale power price of $40 per megawatt hour 
(MWh) and an operating fee rate of 0.02 would be calculated as follows:
[GRAPHIC] [TIFF OMITTED] TN01NO21.002


[[Page 60280]]


    i. Operating Fee Rate: The operating fee rate is the share of 
imputed wholesale market value of the projected annual electric power 
production due to the Office of Natural Resources Revenue as an annual 
operating fee. For the Lease Areas, BOEM proposes to set the fee rate 
at 0.02 (2 percent) for the entire life of commercial operations.
    ii. Nameplate Capacity: Nameplate capacity is the maximum rated 
electric output, expressed in MW, which the turbines of the wind 
facility under commercial operations can produce at their rated wind 
speed as designated by the turbine's manufacturer. The nameplate 
capacity available at the start of each year of commercial operations 
on the lease will be the capacity provided in the FIR. For example, if 
the lessee installed 100 turbines as documented in its FIR, and each is 
rated by the manufacturer at 12 MW, the nameplate capacity of the wind 
facility would be 1,200 MW.
    iii. Capacity Factor: The capacity factor relates to the amount of 
energy delivered to the grid during a period of time compared to the 
amount of energy the wind facility would have produced at full capacity 
during that same period of time. This factor is represented as a 
decimal between zero and one. There are several reasons why the amount 
of power delivered is less than the theoretical 100 percent of 
capacity. For a wind facility, the capacity factor is mostly determined 
by the availability of wind. Transmission line loss and down time for 
maintenance or other purposes also affect the capacity factor.
    BOEM proposes to set the capacity factor at 0.4 (i.e., 40 percent) 
for the year in which the commercial operation date occurs and for the 
first 6 full years of commercial operations on the lease. At the end of 
the sixth year, BOEM may adjust the capacity factor to reflect the 
performance over the previous 5 years based upon the actual metered 
electricity generation at the delivery point to the electrical grid. 
BOEM may make similar adjustments to the capacity factor once every 
five years thereafter.
    iv. Wholesale Power Price Index: Under 30 CFR 585.506(c)(2)(i), the 
wholesale power price, expressed in dollars per MWh, is determined at 
the time each annual operating fee payment is due. For the lease 
offered in this sale, BOEM proposes to use the index for VACAR average 
price per MW from the Enerfax power prices dataset within Hitachi's ABB 
Velocity Suite or similar. VACAR is a subregion of the Southeastern 
Electric Reliability Council and comprises the Carolinas and parts of 
Virginia. The VACAR average price per megawatt represents prices from 
Duke, Progress Energy's Carolina Power and Light, Santee Cooper, South 
Carolina Electric and Gas, Southeastern Power Administration, and APGI 
Yadkin Division.
    c. 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 BOEM-
approved financial assurance instrument in the amount of $100,000. BOEM 
encourages the provisionally winning bidder to discuss financial 
assurance requirements with BOEM as soon as possible after selection 
notification.
    BOEM will base the amount of all SAP, COP, and decommissioning 
financial assurance on cost estimates for meeting all accrued lease 
obligations at the respective stages of development. The required 
amount of supplemental and decommissioning financial assurance will be 
determined on a case-by-case basis.
    The financial terms described above can be found in addendum B of 
the lease, which is available at: https://www.boem.gov/regional-carolina-long-bay-intergovernmental-renewable-energy.

IX. Bidder's Financial Form

    Each bidder must fill out the BFF referenced in this PSN. A copy of 
the form is available at: https://www.boem.gov/regional-carolina-long-bay-intergovernmental-renewable-energy. BOEM recommends that each 
bidder designate an email address in its BFF that the bidder would then 
use to create an account in pay.gov (if it has not already done so). 
BOEM will not consider previously submitted BFFs for previous lease 
sales to satisfy the requirements of this auction. BOEM may consider 
BFFs submitted after the deadline set in the FSN if BOEM determines 
that the failure to timely submit the BFF was caused by events beyond 
the bidder's control. BOEM will only accept an original, signed paper 
copy of the BFF. The BFF must be executed by an authorized 
representative listed in the qualification package on file with BOEM.

X. Bid Deposit

    Each qualified bidder must submit a bid deposit no later than the 
date listed in the FSN. Typically, this deadline is approximately 30-
calendar days after the publication of the FSN. BOEM may 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.
    Following the auction, bid deposits will be applied against the 
winning bid and other obligations owed to BOEM. If a bid deposit 
exceeds that bidder's total financial obligation, BOEM will refund the 
balance of the bid deposit to the bidder. BOEM will refund bid deposits 
to the other bidders once BOEM has announced the provisional winner.
    If BOEM offers a lease to the provisionally winning bidder and that 
bidder neither timely returns the signed leases, establishes financial 
assurance, nor pays the balance of its bid, BOEM will retain that 
bidder's $2,000,000 bid deposit. In such a circumstance, BOEM reserves 
the right to offer a lease to the next highest bidder as determined by 
BOEM.

XI. Minimum Bid

    The minimum bid is the lowest bid BOEM will accept as a winning 
bid, and it is where BOEM will start the bidding in the auction. BOEM 
proposes a minimum bid of $50.00 per acre for this lease sale.

XII. Auction Procedures

    a. Multiple-Factor Bidding Auction: As authorized under 30 CFR 
585.220(a)(4) and 585.221(a)(6), BOEM proposes to use a multiple-factor 
bidding auction for this lease sale. Under BOEM's proposal, the bidding 
system for this lease sale would be a multiple-factor combination of 
nonmonetary and monetary factors. The bid made by a particular bidder 
in each round would represent the sum of a bidding credit and a 
monetary (cash) amount. BOEM proposes to start the auction using the 
minimum bid price for the Lease Area and to increase that price 
incrementally until no more than one active bidder remains in the 
auction.
    b. The Auction: Using an online bidding system to host the auction, 
BOEM will start the bidding for Lease OCS-A 0545. The description below 
assumes that only a single lease area will be offered in the auction. 
In the event that two or more lease areas are offered, BOEM intends to 
use auction procedures similar to those described in the New York Bight 
PSN published in the Federal Register on June 14, 2021 (86 FR 31524).
    The auction will be conducted in a series of rounds. At the start 
of each round, BOEM will state an asking price for the Lease Area. If a 
bidder is willing to meet that asking price, it would indicate its 
intent by submitting a bid equal to the asking price. A bid at the full 
asking price submitted in a round

[[Page 60281]]

is referred to as a ``live bid.'' To participate in the next round of 
the auction, a bidder must have submitted a live bid in each previous 
round.
    As long as there are two or more live bids for the Lease Area, the 
auction moves to the next round. BOEM will continue to raise the asking 
price if two or more live bids are made in the previous round. Asking 
price increments would be determined based on several factors, 
including (but not necessarily limited to) the expected time needed to 
conduct the auction and the number of rounds that have already 
occurred. BOEM reserves the right to increase or decrease bidding 
increments as it deems appropriate.
    Generally, a bidder that submitted a live bid in the previous round 
is free to continue bidding in the current round. If a bidder decides 
to stop bidding in a subsequent round, that bidder could still win the 
auction. For example, that bidder could be ultimately selected in the 
winner determination that is described in detail below, or the winning 
bidder may be disqualified at the award stage of the auction. If this 
happens, the bidder may be bound by its bid and thus obligated to pay 
the full bid amount. Bidders may be bound by any of their bids until 
the auction results are finalized.
    Between rounds, BOEM would disclose to all bidders that submitted 
bids in the previous round: (1) The number of live bids in the previous 
round of the auction (i.e., the level of demand at the asking price); 
and (2) the asking price for the lease area in the upcoming round of 
the auction.
    In any round after the first round, a bidder may submit an ``exit 
bid.'' An exit bid is a bid that is higher than the previous round's 
asking price, but less than the current round's asking price. An exit 
bid is not a live bid, and it represents the final bid from the bidder 
who submitted it. During the auction, the exit bid can be seen only by 
BOEM, not by other bidders.
    The auction will end after the first round in which only one or 
zero live bids is received. BOEM will then determine the provisional 
winner to be the bidder with the highest bid, whether the bid was a 
live bid or an exit bid. The auction system will resolve any tie by 
generating pseudo-random numbers. The provisional winner must pay the 
amount of its provisionally winning bid.
    A provisional winner may be disqualified if it is subsequently 
found to have violated auction rules or BOEM regulations, or otherwise 
engaged in conduct detrimental to the integrity of the competitive 
auction. If a bidder submits a bid that BOEM determines to be a 
provisionally winning bid, the bidder will be expected to sign the 
applicable lease documents, establish financial assurance, and submit 
the balance (if any) of its bonus bid (i.e., winning monetary bid less 
the applicable non-monetary bidding credit and bid deposit) within 10-
business days of receiving the lease copies, pursuant to 30 CFR 
585.224. BOEM reserves the right not to issue the lease to the 
provisionally winning bidder if that bidder neither timely signs the 
lease copies, establishes financial assurance, nor pays the balance of 
its winning bid, or otherwise fails to comply with applicable 
regulations or the terms of the FSN. In that case, the bidder would 
forfeit its bid deposit. BOEM may consider failure of a bidder to 
timely pay the full amount due to be an indication that the bidder may 
no longer be financially qualified to participate in other lease sales 
under 30 CFR 585.106 and 585.107.
    BOEM will publish the provisionally winning bidder and bid amount. 
The bid results, including exit bids, will be published on BOEM's 
website after review of the results and announcement of the provisional 
winner.
    c. Additional Information Regarding the Auction Format
    i. Bidder Authentication: For the online auction, BOEM will require 
two-factor authentication. After BOEM has processed the bid deposits, 
the auction contractor will send several bidder authentication packages 
to the bidders. One package will contain digital authentication tokens 
needed to allow access to the auction website. (Note: BOEM reserves the 
right to use software tokens instead of hardware tokens. If used, 
software tokens will be provided through electronic communications.) As 
a general practice, tokens are 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. Up to 
three individuals can be nominated to bid for each bidder.
    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. If a bidder fails to 
submit a bid deposit or does not participate in the auction, BOEM will 
de-activate that bidder's tokens and login information, and the bidder 
must return its tokens. Under certain circumstances (e.g., if the 
authorized bidders are geographically dispersed and the ability of the 
primary point of contact to timely distribute the materials is in 
question), BOEM may send all materials directly to the authorized 
bidders.
    The second package will contain login credentials for authorized 
bidders. The login credentials are mailed to the address provided in 
the BFF for each authorized individual. Bidders can confirm these 
addresses by calling 703-787-1121. BOEM may also use email to provide 
login credentials. This package will contain user login information and 
instructions for accessing the auction system's Bidder Manual and the 
Auction System Technical Supplement (ASTS). The login information, 
along with the tokens, will be tested during the mock auction.
    ii. Timing of Auction: The FSN will provide specific information 
regarding when bidders can enter the auction system and when the 
auction will start.
    iii. Messaging service: 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 an auction, it will use the messaging feature to notify 
bidders that a revision has been made and will direct bidders to the 
relevant page. BOEM will also use the messaging system for 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 shows 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 ASTS. Information about the round results will be made available 
only after the round has closed, so there is no strategic advantage to 
placing bids early or late in the round.
    The ASTS elaborates on the auction procedures described in this 
PSN. In the event of an inconsistency between the Bidder Manual, the 
ASTS, and the FSN, the FSN is controlling.
    iv. Alternate Bidding Procedures: It is the responsibility of the 
bidder to ensure it has a working internet connection and backup 
procedures in place in case its internet connection is disrupted during 
the auction. Such backup procedures can include redundant internet 
connections, multiple individual authorized to place bids on behalf of 
the company, geographically dispersing individuals who are authorized 
to bid (with different internet connections), and placing bids using a 
mobile data connection. The bidder is responsible for testing its 
backup procedures ahead

[[Page 60282]]

of time. This can be done during the mock auction, for example.

XIII. Rejection or Non-Acceptance of Bids

    BOEM reserves the right and authority to reject any and all bids 
that do not satisfy the requirements and rules of the auction, the FSN, 
or applicable regulations and statutes.

XIV. Anti-Competitive Review

    Bidding behavior in this sale is subject to Federal antitrust laws. 
Accordingly, following the auction, but before the acceptance of bids 
and the issuance of the lease, BOEM must ``allow the Attorney General, 
in consultation with the Federal Trade Commission, thirty days to 
review the results of [the] lease sale.'' 43 U.S.C. 1337(c)(1). If a 
provisionally winning bidder is found to have engaged in anti-
competitive behavior in connection with this lease sale, BOEM may 
reject its provisionally winning bid. Compliance with BOEM's auction 
procedures and regulations is not an absolute defense 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:
    1. An express or tacit agreement among bidders not to bid in an 
auction, or to bid a particular price;
    2. An agreement among bidders not to bid;
    3. An agreement among bidders not to bid against each other; or
    4. Other agreements among bidders that have the potential to affect 
the final auction price.
    Pursuant to 43 U.S.C. 1337(c)(3), BOEM may decline to award a lease 
if the Attorney General, in consultation with the Federal Trade 
Commission, determines that awarding the lease may be inconsistent 
antitrust laws.
    For more information on whether specific communications or 
agreements could constitute a violation of Federal antitrust law, 
please see https://www.justice.gov/atr/business-resources and consult 
legal counsel.

XV. Process for Issuing the Lease

    Once all post-auction reviews have been completed to BOEM's 
satisfaction, BOEM will issue three unsigned copies of the lease to the 
provisionally winning bidder. Within 10-business days after receiving 
the lease copies, the provisionally winning bidders must:
    1. Sign and return the lease copies on the bidder's behalf;
    2. File financial assurance, as required under 30 CFR 585.515-537; 
and
    3. Pay by electronic funds transfer (EFT) the balance (if any) of 
the bonus bid (winning monetary bid less the applicable non-monetary 
bidding credit and bid deposit). BOEM requires bidders to use EFT 
procedures (not pay.gov, the website 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 website at: https://www.boem.gov/regional-carolina-long-bay-intergovernmental-renewable-energy.
    BOEM will not execute the lease until the three requirements above 
have been satisfied. BOEM may extend the 10-business-day deadline if 
BOEM 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 not to issue the lease 
to that bidder. In such a case, the provisionally winning bidder would 
forfeit its bid deposit. Also, in such a case, BOEM reserves the right 
to offer the lease to the next highest bidder as determined by BOEM.
    Within 45-calendar days after receiving the lease copies, the 
provisionally winning bidder must pay the first year's rent using the 
``ONRR Renewable Energy Initial Rental Payments'' form available at: 
https://www.pay.gov/public/form/start/27797604/.
    Subsequent annual rent payments must be made following the detailed 
instructions contained in the ``Instructions for Making Electronic 
Payments,'' available on BOEM's website at: https://www.boem.gov/regional-carolina-long-bay-intergovernmental-renewable-energy.

XVI. Non-Procurement Debarment and Suspension Regulations

    Pursuant to 43 CFR part 42, subpart C, an OCS renewable energy 
lessee must comply with the Department of the Interior's non-
procurement debarment and suspension regulations at 2 CFR parts 180 and 
1400. The lessee must also communicate this requirement to persons with 
whom the lessee does business relating to this lease by including this 
term as a condition in their contracts and other transactions.

XVII. Final Sale Notice

    The development of the FSN will be informed through the EA, related 
consultations, and comments received during the PSN comment period. The 
FSN will provide the final details concerning the offering and issuance 
of an OCS commercial wind energy lease in the Lease Area in the 
vicinity of Carolina Long Bay. The FSN will be published in the Federal 
Register at least 30 days before the lease sale is conducted and will 
provide the date and time of the auction.

XVIII. Changes to Auction Details

    The program manager of BOEM's Office of Renewable Energy Programs 
has the discretion to change any auction detail specified in the FSN, 
including the date and time, if the manager deems that events outside 
BOEM's control may interfere with a fair and proper lease sale. Such 
events may include, but are not limited to, natural disasters (e.g., 
earthquakes, hurricanes, floods, and blizzards), wars, riots, act of 
terrorism, fire, strikes, civil disorder, Federal Government shutdowns, 
cyberattacks against relevant information systems, or other events of a 
similar nature. In case of such events, BOEM would notify all qualified 
bidders via email, phone, and BOEM's website at: https://www.boem.gov/regional-carolina-long-bay-intergovernmental-renewable-energy. Bidders 
should call 703-787-1121 if they have concerns.

XIX. Appeals

    The appeals and reconsideration procedures are provided in BOEM's 
regulations at 30 CFR 585.225 and 585.118(c). Under 30 CFR 585.225:
    (a) If BOEM rejects your bid, BOEM will provide a written statement 
of the reasons and will refund any money deposited with your bid, 
without interest.
    (b) You may ask the BOEM Director for reconsideration, in writing, 
within 15-business days of bid rejection, under 30 CFR 585.118(c)(1). 
The Director will send you a written response either affirming or 
reversing the rejection.
    The procedures for requesting reconsideration of a bid rejection 
are described in 30 CFR 585.118(c).

XX. Public Participation

    BOEM does not consider anonymous comments; please include your name 
and address as part of your comment. You should be aware that your 
entire comment, including your name, address, and any other personal 
identifiable information (PII) included in your comment, may be made 
publicly available. All submissions from identified individuals, 
businesses, and organizations may be available for public viewing on 
regulations.gov.
    In order for BOEM to withhold from disclosure your PII, you must 
identify

[[Page 60283]]

any information contained in the your comment that, if released, would 
constitute a clearly unwarranted invasion of your personal privacy. You 
must also briefly describe any possible harmful consequences of the PII 
disclosure, such as embarrassment, injury, or other harm. BOEM is 
unable to guarantee that your PII will be protected from public 
disclosure because a court may determine that the benefits of 
disclosure about who may influence public policy outweigh possible 
harms.

XXI. Protection of Privileged or Confidential Information

    BOEM will protect privileged or confidential information that you 
submit consistent with the Freedom of Information Act (FOIA) and 30 CFR 
585.113. Exemption 4 of FOIA applies to ``trade secrets and commercial 
or financial information obtained from a person'' that is privileged or 
confidential. 5 U.S.C. 552(b)(4). If you wish to protect the 
confidentiality of such information, clearly mark it ``Contains 
Privileged or Confidential Information'' and consider submitting such 
information as a separate attachment. BOEM will not disclose such 
information, except as required by FOIA. Information that is not 
labeled as privileged or confidential may be regarded by BOEM as 
suitable for public release. Further, BOEM will not treat as 
confidential aggregate summaries of otherwise non-confidential 
information.
    a. Access to Information (54 U.S.C. 307103): BOEM is required, 
after consultation with the Secretary of the Interior, to withhold the 
location, character, or ownership of historic resources if it 
determines that disclosure may, among other things, cause a significant 
invasion of privacy, risk harm to the historic resources, or impede the 
use of a traditional religious site by practitioners. Tribal entities 
and other interested parties should designate information that they 
wish to be held as confidential and provide the reasons why BOEM should 
do so.
    Authority: 43 U.S.C. 1337(p)); 30 CFR 585.211 and 585.216.

Amanda Lefton,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2021-23801 Filed 10-29-21; 8:45 am]
BILLING CODE 4310-MR-P