Atlantic Wind Lease Sale 8 (ATLW-8) for Commercial Leasing for Wind Power on the Outer Continental Shelf (OCS) in the New York (NY) Bight-Final Sale Notice (FSN), 2446-2456 [2022-00504]

Download as PDF 2446 Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Notices instructions. Additionally, if you go to the online docket and sign up for email alerts, you will be notified when comments are posted. We accept anonymous comments. All comments received will be posted without change to https:// www.regulations.gov and will include any personal information you have provided. For more about privacy and submissions in response to this document, see DHS’s eRulemaking System of Records notice (85 FR 14226, March 11, 2020). lotter on DSK11XQN23PROD with NOTICES1 Information Collection Request Title: State Access to the Oil Spill Liability Trust Fund for Removal Costs under the Oil Pollution Act of 1990. OMB Control Number: 1625–0068. Summary: This information collection is the mechanism for a Governor, or their designated representative, of a state to make a request for payment from the Oil Spill Liability Trust Fund (OSLTF) in an amount not to exceed $250,000 for removal cost consistent with the National Contingency Plan required for the immediate removal of a discharge, or the mitigation or prevention of a substantial threat of discharge, of oil. Need: This information collection is required by, 33 CFR part 133, for implementing 33 U.S.C. 2712(d)(1) of the Oil Pollution Act of 1990 (OPA 90). The information provided by the State to the National Pollution Fund Center (NPFC)is used to determine whether expenditures submitted by the state to the OSLTF are compensable, and, where compensable, to ensure the correct amount of reimbursement is made by the OSLTF to the state. If the information is not collected, the Coast Guard and the National Pollution Funds Center will be unable to justify the resulting expenditures, and thus be unable to recover costs from the parties responsible for the spill when they can be identified. Forms: None. Respondents: Governor of a state or their designated representative. Frequency: On occasion. Hour Burden Estimate: The estimated burden of 3 hours a year remains unchanged. Authority: The Paperwork Reduction Act of 1995; 44 U.S.C. chapter 35, as amended. Dated: January 11, 2022. Kathleen Claffie, Chief, Office of Privacy Management, U.S. Coast Guard. [FR Doc. 2022–00693 Filed 1–13–22; 8:45 am] BILLING CODE 9110–04–P VerDate Sep<11>2014 18:04 Jan 13, 2022 Jkt 256001 DEPARTMENT OF THE INTERIOR Bureau of Land Management [212.LLIDB00000.L12200000.DA0000] Notice of Closure on Public Lands in Boise County, Idaho Bureau of Land Management, Interior. ACTION: Notice of closure. AGENCY: Notice is hereby given that the Skinny Dipper Hot Springs, located on public lands administered by the Four Rivers Field Office, Bureau of Land Management (BLM), is closed to all uses. SUMMARY: The Skinny Dipper Hot Springs closure will be in effect for five years from 12:01 a.m., February 14, 2022, or until rescinded or modified by the authorized officer or designated Federal officer, whichever is earlier. FOR FURTHER INFORMATION CONTACT: Brent Ralston, Four Rivers Field Manager, 3948 Development Avenue, Boise, Idaho 83705, email bralston@ blm.gov, or phone (208) 384–3300. Persons who use a telecommunications device for the deaf (TDD) may call the Federal Relay Service (FRS) at (800) 877–8339 to contact Mr. Ralston. The FRS is available 24 hours a day, seven days a week, to leave a message or question with Mr. Ralston. You will receive a reply during normal hours. SUPPLEMENTARY INFORMATION: The closure affects public lands including and surrounding Skinny Dipper Hot Springs, located approximately 4 miles east of Banks, Idaho. The affected public lands are: All public land north of Idaho State Highway 17, also known as the Banks-Lowman Highway, in Lot 3; Section 25, T. 9 N., R. 3 E., Boise Meridian, Boise County, Idaho, containing approximately 41.58 acres. The closure is necessary to allow the BLM to provide for public health and safety and continue to rehabilitate and restore natural conditions damaged by unauthorized use and development around the hot springs. The BLM will post closure signs at main access points to the closed area and the area used for parking located adjacent to the highway. This closure order will be posted in the Boise District BLM office. Maps of the affected area and other documents associated with this closure are available at Four Rivers Field Office, 3948 Development Avenue, Boise, Idaho 83705 and online at https://go.usa.gov/x6MgS. Exemptions: The following persons are exempt from this order: Federal, State, and local officers and employees DATES: PO 00000 Frm 00044 Fmt 4703 Sfmt 4703 in the performance of their official duties; members of organized rescue or fire-fighting forces in the performance of their official duties; and persons with written authorization from the BLM’s Four Rivers Field Office. Enforcement: Any person who violates this closure may be tried before a United States Magistrate and fined in accordance with 18 U.S.C. 3571, imprisoned no more than 12 months under 43 U.S.C. 1733(a) and 43 CFR 8360.0–7, or both. In accordance with 43 CFR 8365.1–7, State or local officials may also impose penalties for violations of Idaho law. Authority: 43 CFR 8364.1. Tanya M. Thrift, Boise District Manager (Acting). [FR Doc. 2022–00403 Filed 1–13–22; 8:45 am] BILLING CODE 4331–11–P DEPARTMENT OF THE INTERIOR Bureau of Ocean Energy Management [Docket No. BOEM–2022–0001] Atlantic Wind Lease Sale 8 (ATLW–8) for Commercial Leasing for Wind Power on the Outer Continental Shelf (OCS) in the New York (NY) Bight— Final Sale Notice (FSN) Bureau of Ocean Energy Management, Interior. ACTION: Final sale notice. AGENCY: This FSN contains information pertaining to the areas available for commercial wind energy leasing on the OCS in the NY Bight. Specifically, this FSN details certain provisions and conditions of the leases, auction details, the lease form, criteria for evaluating competing bids, award procedures, appeal procedures, and lease execution. The Bureau of Ocean Energy Management (BOEM) will offer six leases: Lease OCS–A 0537, Lease OCS–A 0538, Lease OCS–A 0539, Lease OCS–A 0541, Lease OCS–A 0542, and Lease OCS–A 0544 (Lease Areas). The issuance of any 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 lessee, would be subject to subsequent environmental, technical, and public reviews prior to a decision on whether the proposed development should be authorized. DATES: BOEM will hold an online mock auction for potential bidders starting at 9:00 a.m. eastern standard time (EST) on February 18, 2022. The monetary auction will be held online and will begin at 9:00 a.m. EST on February 23, SUMMARY: E:\FR\FM\14JAN1.SGM 14JAN1 lotter on DSK11XQN23PROD with NOTICES1 Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Notices 2022. Additional details are provided in the section entitled ‘‘Deadlines and Milestones for Bidders.’’ FOR FURTHER INFORMATION CONTACT: Luke Feinberg, BOEM Office of Renewable Energy Programs, 45600 Woodland Road, VAM–OREP, Sterling, Virginia 20166, (571) 474–7616, or luke.feinberg@boem.gov. SUPPLEMENTARY INFORMATION: I. Background: BOEM published a Call for Information and Nominations (Call) for an area of 1,735,154 acres in the NY Bight in April of 2018 (83 FR 15602). Based on the information received in response to that notice and consultation with ocean users, BOEM identified Wind Energy Areas (WEA) in March 2021 encompassing 807,383 acres. This lease sale was proposed by BOEM on June 14, 2021, through a Proposed Sale Notice (PSN), which encompassed 627,331 acres and was published in the Federal Register (86 FR 31524). A 60-day comment period followed. BOEM received 134 comment submissions in response to the PSN, which are available on regulations.gov (Docket ID: BOEM–2021–0033) at: https://www.regulations.gov/document/ BOEM-2021-0033-0001. BOEM has posted its responses to comments submitted during the PSN comment period. The document, entitled Response to Comments, can be found through BOEM’s website at: https:// www.boem.gov/Commercial-WindLeasing/NYBight/. In response to the comments received, BOEM made several changes from the description of the NY Bight lease sale that was published in the PSN. The primary change is a reorientation of lease area boundaries resulting in six areas being offered for sale, which is further explained in Section IV—Area Offered for Leasing. Overall, BOEM has deconflicted and reduced the initial 1,735,154 acres proposed in the Call by 72% to 488,201 acres offered for sale through this notice, including most recently a 22% reduction from the total lease acreage in the PSN to the final lease acreage in this FSN. This final reduction culminated an effort to address concerns raised by Tribes, partnering agencies, and the public through the comment period and targeted outreach. In addition, a number of lease stipulations were developed, or refined, based on feedback solicited in the PSN, including provisions to: advance engagement and coordination with federally recognized Tribes, ocean users, other agencies, underserved communities, and other interested stakeholders; advance flexibility in transmission planning; advance the VerDate Sep<11>2014 18:04 Jan 13, 2022 Jkt 256001 domestic supply chain; and promote the use of project labor agreements (PLAs). In response to feedback from the PSN, BOEM will also limit the number of leases that any bidder can win to one. II. List of Eligible Bidders: BOEM has determined that the following 25 entities are legally, technically, and financially qualified to hold a commercial wind lease in the NY Bight pursuant to 30 CFR 585.106 and 107, and therefore, may participate in this lease sale as bidders subject to meeting the requirements outlined in this notice: Company No. Company name 547 Energy LLC ...................................... Arevia Power LLC ................................... Atlantic Shores Offshore Wind Bight, LLC ...................................................... Attentive Energy LLC .............................. Avangrid Renewables, LLC ..................... Bight Wind Holdings, LLC ....................... BP US Offshore Wind Energy LLC ......... CPV Offshore Wind LP ........................... Diamond Wind North America, LLC ........ East Wind LLC ........................................ EDF Renewables Development, Inc ....... Equinor Wind US LLC ............................. GIG Infrastructure HoldCo, LLC .............. GW Offshore Wind LLC .......................... Horizon Wind Power LLC ........................ Invenergy Wind Offshore LLC ................. Mid-Atlantic Offshore Wind LLC .............. OW Ocean Winds East, LLC .................. PNE USA, Inc ......................................... PSEG Renewable Generation LLC ......... RWE Offshore Wind Holdings, LLC ........ SSE Renewables North America Offshore Wind LLC ................................... US Mainstream Offshore LLC ................. US Mainstream Renewable Power Inc ... US Wind Inc ............................................ 15123 15129 15119 15115 15019 15112 15122 15114 15113 15076 15027 15058 15125 15121 15081 15091 15118 15096 15056 15132 15061 15124 15120 15089 15023 a. Affiliated Entities: On the Bidder’s Financial Form (BFF) discussed below, eligible bidders must list any 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 by the start of the auction which eligible bidder (if any) will participate. One bidder may bid on behalf of a planned joint entity provided the other entity is not a participant in the lease sale. If two or more affiliated bidders participate in the auction, BOEM may disqualify some or all such bidders from the auction. BOEM considers two entities to be affiliated if they meet the definition of affiliate in 30 CFR 1206.20, as applicable, or if they are both direct, or indirect, subsidiaries of the same parent company. III. Deadlines and Milestones for Bidders: This section describes the major deadlines and milestones in the auction process from publication of this FSN to execution of the lease pursuant to this sale. These are organized into various stages: The FSN Waiting Period; PO 00000 Frm 00045 Fmt 4703 Sfmt 4703 2447 Conducting the Auction; and From the Auction to Lease Execution. a. FSN Waiting Period: i. Bidder’s Financial Form: Each bidder must submit a BFF to BOEM to participate in the auction. BOEM must receive each BFF no later than January 26, 2022. If a bidder does not submit a BFF by this deadline, BOEM, in its sole discretion, may grant an extension to that bidder only if BOEM determines the bidder’s failure to timely submit a BFF was caused by events beyond the bidder’s control. The BFF can be downloaded at: https://www.boem.gov/ renewable-energy/state-activities/newyork-bight. Once BOEM has processed a BFF, the bidder may log into pay.gov and submit a bid deposit. 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 listed 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). ii. Bid Deposit: Each bidder must provide a bid deposit of $5,000,000 no later than February 9, 2022 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. b. Conducting the Auction: i. Mock Auction: BOEM will hold a Mock Auction on February 18, 2022 beginning at 9:00 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 may participate in the Mock Auction. ii. Monetary Auction: On February 23, 2022, BOEM, through its contractor, will hold the auction. The first round of the auction will start at 9:00 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 will last 1-business day, but it may continue on consecutive business days, as necessary, until the auction ends in accordance with the procedures described in the ‘‘Auction Procedures’’ section of this notice. iii. Announce Provisional Winners: BOEM will announce the provisional E:\FR\FM\14JAN1.SGM 14JAN1 2448 Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Notices winners of the lease sale after the auction ends. c. From the Auction to Lease Execution: i. Refund Non-Winners: Once the provisional winners have been announced, BOEM will return the nonwinners’ bid deposits. ii. Department of Justice (DOJ) Review: DOJ will have 30 days in which to conduct an antitrust review of the auction, pursuant to 43 U.S.C 1337(c). iii. Delivery of the Lease: BOEM will send three lease copies to each winner, with instructions for executing the lease. The first year’s rent is due 45calendar days after the winners receive the lease copies for execution. iv. Return the Lease: Within 10business days of receiving the lease copies, the auction winners must post financial assurance, pay any outstanding balance of their bonus bids (i.e., winning monetary bid minus applicable bid deposit), and sign and return the three executed lease copies. The winners may request extensions to the 10-day deadline, and BOEM may grant such extensions if BOEM determines the delay to be caused by events beyond the requesting winner’s control, pursuant to 30 CFR 585.224(e). v. Execution of Lease: Once BOEM has received the signed lease copies and verified that all other required materials have been received, BOEM will make a final determination regarding its issuance of the leases and will execute the leases, if appropriate. IV. Area Offered for Leasing: In response to comments received on the PSN and consultation with Federal agencies, BOEM is offering six lease areas totaling 488,201 acres for sale through this notice (Figure 1). The eight areas in the PSN have been reoriented and reduced by 22% to address ocean user conflicts in response to comments and input from ocean users, including the fishing industry, the U.S. Coast Guard (USCG) and navigation interests, the National Marine Fisheries Service (NMFS), and the Department of Defense (DOD). Lease Area OCS–A 0543 as identified in the PSN will not be offered for leasing at this time in response to issues raised by the fishing industry and DOD, as well as to allow for increased flexibility in the ongoing siting of an adjacent fairway proposed by the USCG. If circumstances change, BOEM may reconsider this area in a future sale. In addition, at this time, BOEM decided to remove from leasing consideration several areas that overlap with both fishing activity and seafloor features identified by NMFS and other stakeholders as potentially sensitive to impacts from offshore wind facility construction. These removals reduced the viability of OCS–A 0540 as a standalone Lease Area. Therefore, BOEM expanded the western boundary of OCS–A 0539 and removed proposed lease OCS–A 0540. The removal of OCS–A 0543 also negated the justification for the area formerly called a ‘‘transit corridor’’ (running southwest by northeast) between what was previously OCS–A 0543 and OCS–A 0540. The removal of this transit corridor allowed for a westward expansion of the boundaries of OCS–A 0541 and OCS–A 0542, as depicted in the map of the areas linked below. Comments received regarding fishing activity and seafloor features also resulted in no leases being offered within 2.5 nautical miles (nmi) of the Mid-Atlantic Scallop Access Area. The area available for sale will be auctioned as six leases: TABLE 1 TO SECTION IV—ATLW–8 FINAL LEASE AREAS Lease Lease Lease Lease Lease Lease Lease OCS–A OCS–A OCS–A OCS–A OCS–A OCS–A 0537 0538 0539 0541 0542 0544 Total acres ................................................................................................................................................. ................................................................................................................................................. ................................................................................................................................................. ................................................................................................................................................. ................................................................................................................................................. ................................................................................................................................................. lotter on DSK11XQN23PROD with NOTICES1 BILLING CODE 4310–MR–P VerDate Sep<11>2014 18:44 Jan 13, 2022 Jkt 256001 PO 00000 Frm 00046 Fmt 4703 Sfmt 4703 E:\FR\FM\14JAN1.SGM 14JAN1 71,522 84,332 125,964 79,351 83,976 43,056 No surface occupancy (acres) ........................ 12,810 11,687 3,212 7,082 2449 Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Notices ATLW-8 Lease Areas New York New Jersey ~ No Surface Occupancy D ATLW-8 Lease Areas OCS Blocks I••• I ,I • • • •I Protraction Diagram 0 5 I 10 I 15 I 20 Nautical Miles Figure 1 to Section IV - ATLW-8 Final Lease Areas BILLING CODE 4310–MR–C a. Transit Corridors: In the PSN, BOEM solicited comments on proposed transit corridors in Hudson South. VerDate Sep<11>2014 18:04 Jan 13, 2022 Jkt 256001 USCG pointed out that the term ‘‘transit corridor’’ is not defined or recognized in law, regulation, or international PO 00000 Frm 00047 Fmt 4703 Sfmt 4703 convention. As such, the use of the term will likely add confusion. BOEM will not use the term in this sale or future E:\FR\FM\14JAN1.SGM 14JAN1 EN14JA22.000</GPH> lotter on DSK11XQN23PROD with NOTICES1 OREP-2021-1042 lotter on DSK11XQN23PROD with NOTICES1 2450 Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Notices lease sales or other actions. The remaining feedback BOEM received through PSN comments and meetings with the fishing community was largely positive. Therefore, the following lease areas have 2.44 nmi of unleased ocean space between them: OCS–A 0538 and OCS–A 0539 as well as between OCS– A 0539 and OCS–A0541/OCS–A 0542. These areas remain open ocean in which BOEM is not offering a lease. The Permanent International Association of Navigation Congresses World Association of Waterborne Transport Infrastructure and Maritime Institute Netherlands calculations and guidelines as well as the USCG draft Port Access Route Study (USCG–2020–0172) were used to inform our analysis. We note that the USCG draft Port Access Route Study (USCG–2020–0172) suggests that formal establishment of shipping safety fairways or other routing measures within a wind farm are not necessary to facilitate safe transit. b. Areas of No Surface Occupancy: BOEM generally does not lease in increments smaller than an aliquot, which is defined as 1/16th of an OCS lease block (2,304 hectares or 5,693.29 acres). To accommodate the desired distances between surface structures, select portions of the lease areas in the Hudson South WEA (OCS–A 0538, 0539, 0541, 0542) will be offered for sale, but no surface occupancy will be permitted, as described in Addendum A of each respective lease. c. Habitat Avoidance and Facilitating Fishing Vessel Activity: Commenters recommended that BOEM remove from leasing consideration habitat features that could be adversely impacted by future offshore wind facility development. These areas were primarily represented by the New Jersey Department of Environmental Protection’s ‘‘Prime Fishing Area’’ data. Additionally, fishers have requested that offshore wind facilities be designed in a manner that, among other things, provides for safe transit and fishing through and adjacent to future offshore wind facilities. In the Hudson South and the Central Bight WEAs, BOEM removed from leasing consideration areas that met these multiple avoidance recommendations. In Hudson South, BOEM removed areas adjacent to the Mid-Atlantic Scallop Access Area and areas to the west of OCS–A 0539 that are fished by the Atlantic surfclam fishery. In the Central Bight WEA, the southern portion of OCS–A 0537 was removed due to multiple factors, including fishing activity and seafloor features. d. Map of the Area Offered for Leasing: A map of the Lease Areas, and GIS spatial files X, Y (eastings, VerDate Sep<11>2014 18:04 Jan 13, 2022 Jkt 256001 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/renewable-energy/stateactivities/new-york-bight. A large-scale map of the Lease Areas, showing boundaries of the area with numbered blocks, is available from BOEM upon request at the following address: Bureau of Ocean Energy Management, Office of Renewable Energy Programs, 45600 Woodland Road, VAM–OREP, Sterling, Virginia 20166, Phone: (703) 787–1300, Fax: (703) 787–1708. V. Environmental Review: On August 10, 2021, BOEM announced the availability of a draft Environmental Assessment (EA) that assesses the potential impacts of the issuance of commercial and research leases within the identified WEAs of the NY Bight, and the granting of rights-of-way and rights-of-use and easement in the region. The EA focuses on potential environmental consequences of site characterization activities and site assessment activities. The EA also considers project easements associated with each potential lease issued and grants for subsea cable corridors in the NY Bight. The availability of the Final EA and Finding of No Significant Impact was announced on December 16, 2021. BOEM determined that the Proposed Action would not cause any significant impacts and implementing the Proposed Action does not constitute a major Federal action significantly affecting the quality of the human environment within the meaning of section 102(2)(c) of the National Environmental Policy Act of 1969. BOEM will conduct additional environmental reviews upon receipt of a lessee’s proposed project-specific plans, such as a Site Assessment Plan (SAP) or Construction and Operations Plan (COP). VI. New and Modified Lease Stipulations: Based on feedback provided, BOEM is adding lease stipulations that, though discussed conceptually, were not explicitly proposed in the lease packages associated with the PSN. BOEM also is refining certain stipulations in the PSN and previous lease packages. a. Reporting requirements: In an effort to require early and regular engagement with Tribes and ocean users, underserved communities, and other stakeholders (collectively ‘‘Tribes and parties’’) that may be potentially affected by the project activities on the OCS, BOEM is building upon an existing lease stipulation to require a semi-annual progress report. Within the progress report, Lessees will identify PO 00000 Frm 00048 Fmt 4703 Sfmt 4703 Tribes and parties potentially affected by proposed activities and provide updates on engagement activities, impacts on or benefits to the Tribes and parties due to the proposed activities, and how, if at all, a project has been informed or altered to address those challenges or benefits, as well as any planned engagement activities during the next reporting period. In acknowledgment of the existing and growing consultation burden placed on many of the Tribes and parties, the stipulation also requires, to the maximum extent practicable, that Lessees coordinate with one another on engagement activities. It is BOEM’s intention that this requirement to coordinate engagement apply not only to meetings proposed by Lessees, but also to reasonable requests to coordinate engagement requested by Tribes and parties. In addition, the stipulation requires that the progress report incorporate separate lease requirements for the development of communication plans for fisheries (Fisheries Communication Plan (FCP)), Tribes (Native American Tribes Communication Plan), and agencies (Agency Communication Plan), which serve to guide engagement activities with those groups. Consistent with current practice, the FCP is a requirement of the lease; however, BOEM has added additional elements to include in the FCP based on comments received. Lastly, the progress report must also include an update on activities executed under any survey plan. b. Transmission Planning: BOEM is continuing a planned approach to transmission and is evaluating options including the use of cable corridors, regional transmission systems, meshed systems, and other mechanisms. Therefore, BOEM may condition COP approval on the incorporation of such methods where appropriate. BOEM encourages those who obtain leases from this sale to engage in early coordination with adjacent lessees, states, Tribal Nations, and other ocean users to identify ways to minimize impacts from transmission. In addition, BOEM has modified the lease stipulations concerning communication with Tribal Nations and parties to explicitly seek input and discussion surrounding transmission easements prior to proposing such easements. c. Birds and Bats: During Endangered Species Act (ESA) consultation, the U.S. Fish and Wildlife Service recommended in its October 15, 2021, letter to BOEM the installation of automated Motus telemetry tracking stations on meteorological buoys to help address E:\FR\FM\14JAN1.SGM 14JAN1 lotter on DSK11XQN23PROD with NOTICES1 Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Notices information gaps on offshore movements of birds and bats, including ESA-listed species. Therefore, BOEM is including a stipulation requiring the use of such tracking stations. d. Project Labor Agreements and Supply Chain: BOEM is committed to a clean energy future, workforce development and safety, and establishment of a durable domestic supply chain that can sustain the U.S. offshore wind energy industry. To advance this vision, BOEM has included three lease stipulations in the NY Bight FSN that will encourage union-built projects and contribute towards establishing a domestic supply chain: i. The first stipulation requires lessees to make every reasonable effort to enter a project labor agreement covering the construction stage of any project proposed for the Lease Areas. ii. The second stipulation requires lessees to establish a statement of goals in which the lessee will describe its plans for contributing to the creation of a robust and resilient U.S.-based offshore wind industry supply chain. The lessee must provide regular progress updates to BOEM, and BOEM will make those updates publicly available. iii. The last stipulation incentivizes the lessee to procure major offshore wind energy components domestically. For the Lease Areas, BOEM will set the fee rate at 0.02 (i.e., 2%) for the entire life of commercial operations. Should the lessee satisfy the terms of the stipulation by meaningfully and substantially assembling or manufacturing major components in the United States, they may be eligible for a 1% operating fee rate for a period of five years. e. Surface Structure Layout and Orientation: Where one lease abuts a neighboring BOEM lease area, each lessee must endeavor to implement a layout of surface structures that facilitates full enjoyment of the lease and allows for a structure layout that contains two common lines of orientation across the adjacent leases (as described in Navigation and Vessel Inspection Circular 01–19). Where such a design cannot be agreed upon among adjacent lessees, each lessee will be required to incorporate a 1-nmi setback from the boundary with the neighboring lease where no surface structures will be permitted. f. Endangered Species Act Programmatic Consultation: BOEM has completed a programmatic consultation with the NMFS under section 7 of the ESA. Federal partners that were coaction agencies on the programmatic consultation include the Bureau of VerDate Sep<11>2014 18:04 Jan 13, 2022 Jkt 256001 Safety and Environmental Enforcement, U.S. Army Corps of Engineers, and the U.S. Environmental Protection Agency. On June 29, 2021, NMFS issued a Letter of Concurrence under the ESA (https:// www.boem.gov/renewable-energy/finalnlaa-osw-programmatic) that covers site characterization (high resolution geophysical (HRG), geotechnical, and biological surveys) and site assessment and data collection (deployment, operation, and retrieval of meteorological and oceanographic data buoys) activities associated with Atlantic OCS leases. As a result of this consultation, project design criteria (PDCs) and best management practices (BMPs) associated with the mitigation, monitoring, and reporting conditions have been developed for those data collection activities covered in the consultation. The PDCs and BMPs pertain to mitigation, monitoring, and reporting conditions for reducing noise exposure to protected species from HRG surveys, avoiding vessel interactions with protected species, and mooring design and marine debris requirements to avoid entanglement of listed species. Similar to the requirements for threatened and endangered species and critical habitat under the ESA, BOEM requires mitigation, monitoring, and reporting conditions for all marine mammals. These PDCs and BMPs will be lease requirements for NY Bight OCS leasing activities and are found in the document Project Design Criteria and Best Management Practices for Data Collection Associated with Atlantic Offshore Wind Leases found at: https:// www.boem.gov/renewable-energy/nmfsesa-consultations. VII. Potential Future Restrictions: Prospective bidders should be aware of potential conflicts with existing uses of the OCS by the DOD and USCG, among others. BOEM coordinates with the DOD and USCG throughout our leasing process. A December 2020 letter from the DOD summarizes our most recent consultations and is available at: https:// www.boem.gov/sites/default/files/ documents/renewable-energy/stateactivities/PUBLIC-NY-Bight-DOD.pdf. a. Height Restrictions: Development of Lease Areas in the Hudson South WEA could adversely affect U.S. Air Force Weather Division’s Next Generation Weather Radar by limiting the ability to track tropical storms moving towards the region if turbine heights exceed 1,000 feet; however, DOD has informed BOEM that more analysis is needed on specific project proposals to determine the extent of interference, if any. Lessees will be expected to coordinate with the DOD Military Aviation and Installation Assurance Siting Clearinghouse as they PO 00000 Frm 00049 Fmt 4703 Sfmt 4703 2451 design their proposed facilities to assess the impact on radar operations. If interference from turbines heights greater than 1,000 feet is identified, the DOD has indicated a condition of COP approval may be necessary that would require curtailment during severe weather events. b. Air Surveillance and Radar: The North American Aerospace Defense Command mission may be affected by the development of the Lease Areas. Lessees will be expected to coordinate with the DOD Military Aviation and Installation Assurance Siting Clearinghouse as they design their proposed facilities to assess the level of impact on radar operations. Mitigation measures or conditions of a COP approval may necessitate mitigation of the identified interference. c. Potential Future Conflicts with OCS–A 0544: The PSN identified a potential conflict in the Hudson North WEA (OCS–A 0544) with a new shipping safety fairway designation, as proposed by USCG, to accommodate vessel traffic travelling across the NY Bight from the Delaware Bay area to east of Montauk. The USCG published a final Port Access Route Study on January 3, 2022 that proposed an adjusted fairway route that avoids this conflict. Potential bidders should be aware that there could be future changes or necessary mitigation measures relating to the developable area of the lease if the proposed fairway route is adjusted during the USCG’s subsequent fairway rulemaking process. VIII. Lease Terms and Conditions: BOEM has included terms, conditions, and stipulations for the OCS commercial wind leases to be offered through this sale. After the leases are issued, BOEM reserves the right to require compliance with additional terms and conditions associated with approval of a SAP or COP. The leases are available on BOEM’s website at: https://www.boem.gov/renewableenergy/state-activities/new-york-bight. The leases include the following five 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); and • Addendum ‘‘E’’ (Rent Schedule). 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. E:\FR\FM\14JAN1.SGM 14JAN1 2452 Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Notices size of OCS–A 0537), the rent payment will be $214,566 per year if no portion of the lease area is authorized for commercial operations. If the lessee submits an application for relinquishment of a portion of its leased 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 lease area. Later relinquishments of any portion of the lease area will reduce the lessee’s rent payments starting in the year following BOEM’s approval of the relinquishment. The lessee must also 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 as outlined in 30 CFR 585.508. Annual rent for a project easement that is 200 feet wide and centered on the transmission cable is $70 per statute mile. For any additional acreage required, the lessee must also pay the greater of $5 per acre per year or $450 per year. b. Operating Fee: For purposes of calculating the initial annual operating fee payment pursuant to 30 CFR 585.506, BOEM applies an operating fee rate to a proxy for the wholesale market lotter on DSK11XQN23PROD with NOTICES1 Annual Operating Fee= 1,028 MW 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 will set the fee rate at 0.02 (i.e., 2%) for the entire life of commercial operations. Should the lessee satisfy the terms of the stipulation by meaningfully and substantially assembling or manufacturing major components in the United States, they may be eligible for a 1% operating fee rate for a period of five years. 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 Fabrication and Installation Report (FIR). For example, if the lessee installed 100 turbines as VerDate Sep<11>2014 18:04 Jan 13, 2022 Jkt 256001 X 8,760 hrs X year 0.4 x $4 oh MW Power Price documented in its FIR, and each is rated by the manufacturer at 12 MW, the nameplate capacity of the wind facility is 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% 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. The capacity factor for the year in which the commercial operation date occurs, and for the first 6 full years of commercial operations on the lease, is set to 0.4 (i.e., 40%). At the end of the sixth year, the capacity factor may be adjusted to reflect the performance over the previous five years based upon the PO 00000 Frm 00050 Fmt 4703 Sfmt 4703 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 is due within 45 days of the commencement of commercial operations. Thereafter, subsequent annual operating fee payments are due on or before the 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 would 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 1,028-megawatt (MW) wind facility operating at a 40% capacity (i.e., capacity factor of 0.4) with an annual average regional wholesale power price of $40/megawatt hour (MWh) and an operating fee rate of 0.02 will be calculated as follows: X 0.02 = $2,881,689.60 actual metered electricity generation at the delivery point to the electrical grid. Similar adjustments to the capacity factor may be made once every five years thereafter. iv. 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. For the leases offered in this sale, BOEM will use the simple hourly average of the spot price indices for New York Independent System Operators New York City (Zone J). c. Financial Assurance: Within 10business days after receiving the lease copies and pursuant to 30 CFR 585.515– .516, the provisional winners of the leases must provide an initial leasespecific bond or other approved means of meeting the lessor’s initial financial assurance requirements, in the amount of $100,000. The provisional winners 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 E:\FR\FM\14JAN1.SGM 14JAN1 EN14JA22.001</GPH> The most recent version of BOEM’s renewable energy commercial lease form (BOEM–0008) is available on BOEM’s website at: https:// www.boem.gov/BOEM-OCS-OperationForms/. Pursuant to 30 CFR 585.601, a leaseholder wishing to submit a SAP must do so within 12 months of lease issuance. If the lessee intends to continue to hold the lease into its operations term, the lessee must submit a COP at least 6 months before the end of the site assessment term. IX. 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. 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 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 as defined in 30 CFR 585.237 (the ‘‘Lease Anniversary’’). Once commercial operations under the lease begin, BOEM will charge rent only for the portions of the lease remaining undeveloped (i.e., non-operating acreage). For a 71,522 acre lease (the lotter on DSK11XQN23PROD with NOTICES1 Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Notices 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 on cost estimates for meeting all accrued lease obligations at the respective stages of development. BOEM will determine the required amount of supplemental and decommissioning financial assurance on a case-by-case basis. The financial terms described above can be found in Addendum ‘‘B’’ of the leases, which BOEM has made available with this notice on its website at: https:// www.boem.gov/renewable-energy/stateactivities/new-york-bight. X. Bidder’s Financial Form: Each bidder must fill out the BFF referenced in this FSN. BOEM has also made a copy of the form available with this notice on its website at: https:// www.boem.gov/renewable-energy/stateactivities/new-york-bight. 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). BOEM will not consider BFFs submitted by bidders for previous lease sales to satisfy the requirements of this auction. If a bidder does not submit a BFF by January 26, 2022, BOEM, in its sole discretion, may grant an extension to that bidder only if BOEM determines the bidder’s failure to timely submit a BFF was caused by events beyond the bidder’s control. BOEM will only accept an original, executed paper copy of the BFF. The BFF must be executed by an authorized representative listed in the qualifications package on file with BOEM as authorized to bind the company. XI. Bid Deposit: A bid deposit is an advance cash payment submitted to BOEM to participate in the auction. After creating an account in pay.gov (if necessary), bidders may use the Bid Deposit Form on the pay.gov website to leave a deposit. Each bidder must submit a bid deposit of $5,000,000 no later than February 9, 2022. Any bidder who fails to submit the bid deposit by this deadline may be disqualified from participating in the auction. Following the auction, bid deposits will be applied against bonus bids or other obligations owed to BOEM. If the bid deposit exceeds a bidder’s total financial obligation, BOEM will refund the balance of the bid deposit to the bidder. BOEM will refund bid deposits to non-winners once BOEM has announced the provisional winner. VerDate Sep<11>2014 18:04 Jan 13, 2022 Jkt 256001 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 the bidder’s $5,000,000 bid deposit. In such a circumstance, BOEM reserves the right to determine which bid would have won in the absence of the bid previously determined to be the winning bid and to offer a lease pursuant to this next highest bid. XII. Minimum Bid: The minimum bid is the lowest bid that BOEM will accept as a winning bid, and it is where BOEM will start the bidding in the auction. BOEM has established a minimum bid of $100.00 per acre for this lease sale. XIII. Auction Procedures: As authorized under 30 CFR 585.220(a)(2) and 585.221(a)(1), BOEM will use an ascending bidding auction with cash as the bid variable for this lease sale. BOEM will start the auction using the minimum bid prices for each Lease Area and will increase those prices incrementally until no more than one active bidder per Lease Area remains in the auction. a. The Auction: Using an online bidding system to host the auction, BOEM will start the bidding for Lease Areas OCS–A 0537 through 0539, OCS– A 0541, OCS–A 0542, and OCS–A 0544, as described below. Bidders may bid for at most one of the offered Lease Areas in each round of the auction, and ultimately acquire at most one of the Lease Areas in the auction. Lease area OCS–A OCS–A OCS–A OCS–A OCS–A OCS–A Acres 0537 0538 0539 0541 0542 0544 71,522 84,332 125,964 79,351 83,976 43,056 Minimum bid $7,152,200 8,433,200 12,596,400 7,935,100 8,397,600 4,305,600 b. Live Bids: The auction will be conducted in a series of rounds. At the start of each round, BOEM will state an asking price for each Lease Area. If a bidder is willing to meet the asking price for one of the Lease Areas, it will indicate its intent by submitting a bid equal to the asking price. A bid at the full asking price is referred to as a ‘‘live bid.’’ To participate in the next round of the auction, a bidder must have submitted a live bid for one of the Lease Areas in each previous round, or BOEM must have carried forward a bidder’s bid from a previous round. As long as there are two or more live bids (including bids carried forward) for at least one of the Lease Areas, the auction moves to the next round. If a bid is uncontested, it is automatically carried forward to the PO 00000 Frm 00051 Fmt 4703 Sfmt 4703 2453 next round. BOEM will raise the asking price for each of the Lease Areas that has received two or more live bids in the previous round. Asking price increments will be determined based on several factors, including (but not necessarily limited to) the expected time needed to conduct the auction and the number of rounds that have already occurred. BOEM reserves the right to increase or decrease bidding increments as appropriate. A bidder may switch its live bid from one Lease Area to another between rounds only if its bid from the previous round was contested. For example, a bidder cannot switch from OCS–A 0537 to OCS–A 0538 unless there was at least one other live bid for OCS–A 0537 in the prior round. If the bid was uncontested in the previous round, the bidder cannot switch Lease Areas, and its bid in the previous round is carried forward to the next round. If another bidder places a live bid on OCS–A 0537 later in the auction, BOEM will stop automatically carrying forward the previously uncontested bid on that Lease Area. The bidder that placed the previously carried forward bid is then free to bid on any of the Lease Areas in the next round at the new asking prices. If a bidder decides to stop bidding when its bid is contested, there remain circumstances in which BOEM may select the bid as the winning bid (e.g., if the bid is ultimately selected in the winner determination that is described in detail below, or if the winning bid is disqualified at the award stage of the auction and BOEM selects another bid). In these circumstances, 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 will disclose to all bidders that submitted bids: (1) The number of live bids or bids carried forward for each of the Lease Areas in the previous round of the auction (i.e., the level of demand at the asking price); and (2) the asking price for each of the Lease Areas in the upcoming round of the auction. c. Exit Bids: In any round after the first round, a bidder may submit an ‘‘exit bid’’ (also known as an ‘‘intraround bid’’) only for the same Lease Area as the bidder’s contested live bid in the previous round. An exit bid is a bid that is greater than the previous round’s asking price, but less than the current round’s asking price for that Lease Area. An exit bid is not a live bid, and it represents the final bid that a bidder may submit in the auction. A bidder may not submit both an exit bid on one of the Lease Areas and a live bid E:\FR\FM\14JAN1.SGM 14JAN1 lotter on DSK11XQN23PROD with NOTICES1 2454 Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Notices on a different Lease Area. During the auction, the exit bid can be seen only by BOEM and not by other bidders. BOEM will not raise the asking price in a Lease Area with only exit bids in a given round because BOEM only raises asking prices when a Lease Area receives multiple live bids. As soon as each of the Lease Areas has one or zero live bids (including bids carried forward, which could include an exit bid if another bidder does not bid on this area in a subsequent round), the auction is over, regardless of the number of exit bids on each area. d. Determination of Provisional Winners: After the bidding ends, BOEM will determine the provisionally winning bids for each Lease Area by a two-stage procedure. In stage 1, the highest bid (live bid or exit bid) received for each Lease Area in the final round will be designated the provisionally winning bid, if there is a single highest bid. In the event of a tie (i.e., if two or more bidders submitted identical highest exit bids for the same Lease Area), the selection of one of the highest exit bids will be deferred until stage 2. In stage 2, BOEM will consider bids from all bidding rounds for Lease Areas that were not assigned in stage 1 by bidders who were not assigned one of the Lease Areas in stage 1. BOEM will select the combination of such bids that maximizes the sum of the bid amounts of the selected bids, subject to the following constraints: (1) Each Lease Area that received multiple highest exit bids in the final round (but no live bid) is assigned to one of the bidders that submitted the highest exit bid; (2) at most one bid from each bidder can be selected; and (3) at most one bid for each Lease Area can be selected. If there is a unique combination of bids that solves this maximization problem, then these bids are deemed to be the remaining provisionally winning bids. If two or more combinations of bids tie by producing the same maximized sum of bid amounts, the auction system will select one of the combinations by generating pseudorandom numbers. The provisional winners will pay the amounts of their provisionally winning bids. Provisional winners may be disqualified if they are 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 cash balance of its bid (i.e., winning bid VerDate Sep<11>2014 18:04 Jan 13, 2022 Jkt 256001 amount minus the 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 fails to timely sign and pay for the lease 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 bid amounts and provisional winners. The bid results, including exit bids, will be published on BOEM’s website after review of the results and announcement of the provisional winners. e. Authorized Individuals and Bidder Authentication: A company that is eligible to participate in the auction will identify on its BFF up to three individuals who are authorized to bid on behalf of the company, including their names, business telephone numbers, and email addresses. After BOEM has processed the bid deposits, the auction contractor will send several emails to the authorized individuals. The emails will contain user login information and instructions for accessing the bidder manual for the auction system and the auction system technical supplement (ASTS). The auction system will require software tokens for two-factor authentication. To set up the tokens, authorized individuals must download an app onto their smartphone or tablet via a recent operating system. One of the emails sent to authorized individuals will contain instructions for installing the app and the credentials needed to activate the software token. A short telephone conversation with the auction contractor may also be needed to use the credentials. The login information, along with the tokens, will be tested during the mock auction. If an eligible 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. f. Timing of Auction: The auction will begin at 9:00 a.m. EST on February 23, 2022. Bidders may log in as early as 8:30 a.m. EST on that day. BOEM recommends that bidders log in earlier than 9:00 a.m. EST 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 anticipated start times, end times, and PO 00000 Frm 00052 Fmt 4703 Sfmt 4703 recess times of each round in the auction. Each round is structured as follows: • Round bidding begins; • Bidders enter their bids; • Round bidding ends and the recess begins; • During the recess, previous round results and next round asking prices 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 will be shorter. Recesses are anticipated to last approximately 10 minutes. This description of the auction schedule is tentative. Bidders should consult the auction schedule on the auction system during the auction for updated times. Bidding will continue until about 6:00 p.m. EST each day. BOEM anticipates that the auction will last 1- to 2-business days, but may continue for additional business days as necessary until the auction has concluded. g. 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 end of the round to place bids. Bidders should place bids according to the procedures described in this notice and the ASTS. Information about the round results will only be made available after the round has closed, so there is no strategic advantage to placing bids early or late in the round. The ASTS will elaborate on the auction procedures described in this FSN. In the event of an inconsistency between the ASTS and the FSN, the FSN is controlling. h. Alternate Bidding Procedures: Redundancy is the most effective way to mitigate technical and human issues during an auction. Bidders should strongly consider authorizing more than one individual to bid in the auction— and confirming during the mock auction that each individual is able to access the auction system. A 4G card or other form E:\FR\FM\14JAN1.SGM 14JAN1 lotter on DSK11XQN23PROD with NOTICES1 Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Notices of wireless access is helpful in case a company’s main internet connection should fail. As a last resort, an authorized individual facing technical issues may request to submit its bid by telephone. In order to be authorized to place a telephone bid, an authorized individual must call the help desk number listed in the auction manual before the end of the round. BOEM will authenticate the caller’s identity, including requiring the caller to provide a code from the software token. The caller must also explain the reasons why a telephone bid must be submitted. BOEM may, in its sole discretion, permit or refuse to accept a request for the placement of a bid using this alternate bidding procedure. i. Prohibition on Communications Between Bidders During Auction: During the auction, bidders are prohibited from communicating with each other regarding their participation in the auction. Also, during the auction, bidders are prohibited from communicating to the public regarding any aspect of their participation or lack thereof in the auction, including, but not limited to, through social media, updated websites, or press releases. XIV. Post-Auction Procedures: a. Rejection or Non-Acceptance of Bids: BOEM reserves the right and authority to reject all bids that do not satisfy the requirements and rules of the auction, the FSN, or applicable regulations and statutes. i. 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 provisionally winning bidder is found to have engaged in anti-competitive behavior in connection with its participation in the competitive bidding process, 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. 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 or not to bid on one of the Lease Areas; VerDate Sep<11>2014 18:04 Jan 13, 2022 Jkt 256001 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), BOEM will decline to award a lease if the Attorney General, in consultation with the Federal Trade Commission, determines that awarding the lease would be inconsistent with the 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 or consult legal counsel. b. 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 each provisionally winning bidder. Within 10-business days after receiving the lease copies, the provisionally winning bidders must: 1. Sign and return the lease copies on the bidder’s behalf; 2. File financial assurance, as required under 30 CFR 585.515–.537; and 3. Pay by electronic funds transfer (EFT) the balance (if any) of the bonus bid (winning bid less the 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/renewable-energy/stateactivities/new-york-bight. 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 10-business day deadline for signing a lease, filing the required financial assurance, and paying the balance of the bonus bid if BOEM determines the delay was caused by events beyond the provisionally winning bidder’s control. If a 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 will forfeit its bid deposit. Also, in such a case, BOEM reserves the right to identify the next highest bid for that lease area submitted during the lease PO 00000 Frm 00053 Fmt 4703 Sfmt 4703 2455 sale by a bidder who has not won one of the other Lease Areas and to offer the lease to that bidder pursuant to its bid. Within 45-calendar days of the date that a provisionally winning bidder receives copies of the lease, it must pay the first year’s rent using the pay.gov and Renewable Energy Initial Rental Payment 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/ renewable-energy/state-activities/newyork-bight. c. Non-Procurement Debarment and Suspension Regulations: Pursuant to regulations at 43 CFR part 42, subpart C, an OCS renewable energy lessee must comply with the Department of the Interior’s non-procurement debarment and suspension regulations at 2 CFR parts 180 and 1400. The lessee must also communicate this requirement to persons with whom the lessee does business relating to this lease by including this term as a condition in their contracts and other transactions. d. Force Majeure: The Program Manager of BOEM’s Office of Renewable Energy Programs has the discretion to change any auction details specified in the FSN, including the date and time, in case of a force majeure event that the Program Manager deems may interfere with a fair and proper lease sale process. Such events may include, but are not limited to: Natural disasters (e.g., earthquakes, hurricanes, floods, blizzards), wars, riots, acts of terrorism, fire, strikes, civil disorder, or other events of a similar nature. In case of such events, BOEM will notify all qualified bidders via email, phone, or through the BOEM website at: https:// www.boem.gov/Renewable-EnergyProgram/index.aspx. Bidders should call 703–787–1121 if they have concerns. e. Withdrawal of Blocks: BOEM reserves the right to withdraw all or portions of the Lease Areas prior to executing the leases with the winning bidders. f. Appeals: The appeals procedures are provided in BOEM’s regulations at 30 CFR 585.225 and 585.118(c). Pursuant to 30 CFR 585.225: (a) If BOEM rejects your bid, BOEM will provide a written statement of the reasons and refund any money deposited with your bid, without interest. (b) You will then be able to ask the BOEM Director for reconsideration, in E:\FR\FM\14JAN1.SGM 14JAN1 2456 Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Notices 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). XV. Protection of Privileged or Confidential Information: BOEM will protect privileged and confidential information that you submit, as required by the Freedom of Information Act (FOIA). Exemption 4 of FOIA applies to ‘‘trade secrets and commercial or financial information that you submit that is privileged or confidential.’’ 5 U.S.C. 552(b)(4). If you wish to protect the confidentiality of such information, clearly mark it ‘‘Contains Privileged or Confidential Information’’ and consider submitting such information as a separate attachment. BOEM will not disclose such information, except as required by FOIA. Information that is not labeled as privileged or confidential may be regarded by BOEM as suitable for public release. Further, BOEM will not treat as confidential aggregate summaries of otherwise confidential information. Authority: 43 U.S.C. 1337(p); 30 CFR 585.211 and 585.216. [FR Doc. 2022–00504 Filed 1–13–22; 8:45 am] BILLING CODE 4310–MR–P JUDICIAL CONFERENCE OF THE UNITED STATES Advisory Committee on Bankruptcy Rules; Meeting of the Judicial Conference Judicial Conference of the United States. ACTION: Advisory committee on Bankruptcy Rules; notice of cancellation of open hearing. AGENCY: The following virtual public hearing on proposed amendments to the Federal Rules of Bankruptcy Procedure has been canceled: Bankruptcy Rules Hearing on January 28, 2022. The announcement for this hearing was previously published in the Federal Register on August 11, 2021. DATES: January 28, 2022. FOR FURTHER INFORMATION CONTACT: Bridget Healy, Esq., Acting Chief Counsel, Rules Committee Staff, Administrative Office of the U.S. Courts, Thurgood Marshall Federal Judiciary Building, One Columbus Circle NE, lotter on DSK11XQN23PROD with NOTICES1 VerDate Sep<11>2014 18:04 Jan 13, 2022 Jkt 256001 (Authority: 28 U.S.C. 2073.) Dated: January 11, 2022. Shelly L. Cox, Management Analyst, Rules Committee Staff. [FR Doc. 2022–00655 Filed 1–13–22; 8:45 am] BILLING CODE 2210–55–P DEPARTMENT OF JUSTICE Drug Enforcement Administration [Docket No. DEA–943] Importer of Controlled Substances Application: Organic Standards Solutions International, LLC Drug Enforcement Administration, Justice. ACTION: Notice of application. AGENCY: Organic Standards Solutions International, LLC has applied to be registered as an importer of basic class(es) of controlled substance(s). Refer to SUPPLEMENTARY INFORMATION listed below for further drug information. SUMMARY: Registered bulk manufacturers of the affected basic class(es), and applicants therefore, may file written comments on or objections to the issuance of the proposed registration on or before February 14, 2022. Such persons may also file a written request for a hearing on the application on or before February 14, 2022. ADDRESSES: Written comments should be sent to: Drug Enforcement Administration, Attention: DEA Federal Register Representative/DPW, 8701 Morrissette Drive, Springfield, Virginia 22152. All requests for a hearing must be sent to: Drug Enforcement Administration, Attn: Administrator, 8701 Morrissette Drive, Springfield, Virginia 22152. All request for a hearing should also be sent to: (1) Drug Enforcement Administration, Attn: Hearing Clerk/OALJ, 8701 Morrissette Drive, Springfield, Virginia 22152; and (2) Drug Enforcement Administration, Attn: DEA Federal Register Representative/DPW, 8701 Morrissette Drive, Springfield, Virginia 22152. SUPPLEMENTARY INFORMATION: In accordance with 21 CFR 1301.34(a), this is notice that on November 15, 2021, Organic Standards Solutions International, LLC., 7290 Investment Drive, Unit B, North Charleston, South Carolina 29418–8305, applied to be registered as an importer of the DATES: Amanda Lefton, Director, Bureau of Ocean Energy Management. SUMMARY: Suite 7–300, Washington, DC 20544, Phone (202) 502–1820, RulesCommittee_Secretary@ ao.uscourts.gov. PO 00000 Frm 00054 Fmt 4703 Sfmt 4703 following basic class(es) of controlled substance(s): Controlled substance Marihuana Extract ..................... Marihuana ................................. Tetrahydrocannabinols ............. I Drug code Schedule 7350 7360 7370 I I I I The company plans to import the listed controlled substances to produce analytical reference standards for distribution to its customers. Drug codes 7350 (Marihuana Extract) and 7360 (Marihuana) will be used for the manufacture of cannabidiol only. In reference to drug code 7370 (Tetrahydrocannabinols), the company plans to import the synthetic version of this controlled substance to produce analytical reference standards for distribution to their customers. No other activity for these drug codes is authorized for this registration. Approval of permit applications will occur only when the registrant’s business activity is consistent with what is authorized under 21 U.S.C. 952(a)(2). Authorization will not extend to the import of Food Drug Administrationapproved or non-approved finished dosage forms for commercial sale. Brian S. Besser, Acting Assistant Administrator. [FR Doc. 2022–00652 Filed 1–13–22; 8:45 am] BILLING CODE P DEPARTMENT OF JUSTICE Notice of Lodging of Proposed Joint Stipulation and Order Modifying the Consent Decree With Central Sprinkler Corporation Under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) On January 10, 2022, the Department of Justice lodged a proposed Joint Stipulation and Order Modifying the Consent Decree with Central Sprinkler Corporation (‘‘CD Modification’’), with the United States District Court for the Eastern District of Pennsylvania in the lawsuit entitled United States v. Parker Hannifin Corporation and Central Sprinkler Corporation, Civil Action No. 2:05–cv–1351. The CD Modification modifies a 2005 Consent Decree entered into between the United States and Central Sprinkler Corporation (‘‘Central Sprinkler’’), relating to Operable Unit 3 (OU3) at the North Penn Area 6 Superfund Site in Montgomery County, Pennsylvania (the ‘‘Site’’). The 2005 Consent Decree addresses one of the source locations in OU3: Property located at 451 North E:\FR\FM\14JAN1.SGM 14JAN1

Agencies

[Federal Register Volume 87, Number 10 (Friday, January 14, 2022)]
[Notices]
[Pages 2446-2456]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-00504]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2022-0001]


Atlantic Wind Lease Sale 8 (ATLW-8) for Commercial Leasing for 
Wind Power on the Outer Continental Shelf (OCS) in the New York (NY) 
Bight--Final Sale Notice (FSN)

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Final sale notice.

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

SUMMARY: This FSN contains information pertaining to the areas 
available for commercial wind energy leasing on the OCS in the NY 
Bight. Specifically, this FSN details certain provisions and conditions 
of the leases, auction details, the lease form, criteria for evaluating 
competing bids, award procedures, appeal procedures, and lease 
execution. The Bureau of Ocean Energy Management (BOEM) will offer six 
leases: Lease OCS-A 0537, Lease OCS-A 0538, Lease OCS-A 0539, Lease 
OCS-A 0541, Lease OCS-A 0542, and Lease OCS-A 0544 (Lease Areas). The 
issuance of any 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 lessee, would be subject to subsequent 
environmental, technical, and public reviews prior to a decision on 
whether the proposed development should be authorized.

DATES: BOEM will hold an online mock auction for potential bidders 
starting at 9:00 a.m. eastern standard time (EST) on February 18, 2022. 
The monetary auction will be held online and will begin at 9:00 a.m. 
EST on February 23,

[[Page 2447]]

2022. Additional details are provided in the section entitled 
``Deadlines and Milestones for Bidders.''

FOR FURTHER INFORMATION CONTACT: Luke Feinberg, BOEM Office of 
Renewable Energy Programs, 45600 Woodland Road, VAM-OREP, Sterling, 
Virginia 20166, (571) 474-7616, or [email protected].

SUPPLEMENTARY INFORMATION:
    I. Background: BOEM published a Call for Information and 
Nominations (Call) for an area of 1,735,154 acres in the NY Bight in 
April of 2018 (83 FR 15602). Based on the information received in 
response to that notice and consultation with ocean users, BOEM 
identified Wind Energy Areas (WEA) in March 2021 encompassing 807,383 
acres. This lease sale was proposed by BOEM on June 14, 2021, through a 
Proposed Sale Notice (PSN), which encompassed 627,331 acres and was 
published in the Federal Register (86 FR 31524). A 60-day comment 
period followed. BOEM received 134 comment submissions in response to 
the PSN, which are available on regulations.gov (Docket ID: BOEM-2021-
0033) at: https://www.regulations.gov/document/BOEM-2021-0033-0001. 
BOEM has posted its responses to comments submitted during the PSN 
comment period. The document, entitled Response to Comments, can be 
found through BOEM's website at: https://www.boem.gov/Commercial-Wind-Leasing/NYBight/.
    In response to the comments received, BOEM made several changes 
from the description of the NY Bight lease sale that was published in 
the PSN. The primary change is a reorientation of lease area boundaries 
resulting in six areas being offered for sale, which is further 
explained in Section IV--Area Offered for Leasing. Overall, BOEM has 
deconflicted and reduced the initial 1,735,154 acres proposed in the 
Call by 72% to 488,201 acres offered for sale through this notice, 
including most recently a 22% reduction from the total lease acreage in 
the PSN to the final lease acreage in this FSN. This final reduction 
culminated an effort to address concerns raised by Tribes, partnering 
agencies, and the public through the comment period and targeted 
outreach. In addition, a number of lease stipulations were developed, 
or refined, based on feedback solicited in the PSN, including 
provisions to: advance engagement and coordination with federally 
recognized Tribes, ocean users, other agencies, underserved 
communities, and other interested stakeholders; advance flexibility in 
transmission planning; advance the domestic supply chain; and promote 
the use of project labor agreements (PLAs). In response to feedback 
from the PSN, BOEM will also limit the number of leases that any bidder 
can win to one.
    II. List of Eligible Bidders: BOEM has determined that the 
following 25 entities are legally, technically, and financially 
qualified to hold a commercial wind lease in the NY Bight pursuant to 
30 CFR 585.106 and 107, and therefore, may participate in this lease 
sale as bidders subject to meeting the requirements outlined in this 
notice:

------------------------------------------------------------------------
                                                                Company
                         Company name                             No.
------------------------------------------------------------------------
547 Energy LLC...............................................      15123
Arevia Power LLC.............................................      15129
Atlantic Shores Offshore Wind Bight, LLC.....................      15119
Attentive Energy LLC.........................................      15115
Avangrid Renewables, LLC.....................................      15019
Bight Wind Holdings, LLC.....................................      15112
BP US Offshore Wind Energy LLC...............................      15122
CPV Offshore Wind LP.........................................      15114
Diamond Wind North America, LLC..............................      15113
East Wind LLC................................................      15076
EDF Renewables Development, Inc..............................      15027
Equinor Wind US LLC..........................................      15058
GIG Infrastructure HoldCo, LLC...............................      15125
GW Offshore Wind LLC.........................................      15121
Horizon Wind Power LLC.......................................      15081
Invenergy Wind Offshore LLC..................................      15091
Mid-Atlantic Offshore Wind LLC...............................      15118
OW Ocean Winds East, LLC.....................................      15096
PNE USA, Inc.................................................      15056
PSEG Renewable Generation LLC................................      15132
RWE Offshore Wind Holdings, LLC..............................      15061
SSE Renewables North America Offshore Wind LLC...............      15124
US Mainstream Offshore LLC...................................      15120
US Mainstream Renewable Power Inc............................      15089
US Wind Inc..................................................      15023
------------------------------------------------------------------------

    a. Affiliated Entities: On the Bidder's Financial Form (BFF) 
discussed below, eligible bidders must list any 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 by the 
start of the auction which eligible bidder (if any) will participate. 
One bidder may bid on behalf of a planned joint entity provided the 
other entity is not a participant in the lease sale. If two or more 
affiliated bidders participate in the auction, BOEM may disqualify some 
or all such bidders from the auction.
    BOEM considers two entities to be affiliated if they meet the 
definition of affiliate in 30 CFR 1206.20, as applicable, or if they 
are both direct, or indirect, subsidiaries of the same parent company.
    III. Deadlines and Milestones for Bidders: This section describes 
the major deadlines and milestones in the auction process from 
publication of this FSN to execution of the lease pursuant to this 
sale. These are organized into various stages: The FSN Waiting Period; 
Conducting the Auction; and From the Auction to Lease Execution.
    a. FSN Waiting Period:
    i. Bidder's Financial Form: Each bidder must submit a BFF to BOEM 
to participate in the auction. BOEM must receive each BFF no later than 
January 26, 2022. If a bidder does not submit a BFF by this deadline, 
BOEM, in its sole discretion, may grant an extension to that bidder 
only if BOEM determines the bidder's failure to timely submit a BFF was 
caused by events beyond the bidder's control. The BFF can be downloaded 
at: https://www.boem.gov/renewable-energy/state-activities/new-york-bight. Once BOEM has processed a BFF, the bidder may log into pay.gov 
and submit a bid deposit. 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 listed 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).
    ii. Bid Deposit: Each bidder must provide a bid deposit of 
$5,000,000 no later than February 9, 2022 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.
    b. Conducting the Auction:
    i. Mock Auction: BOEM will hold a Mock Auction on February 18, 2022 
beginning at 9:00 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 may participate in the Mock 
Auction.
    ii. Monetary Auction: On February 23, 2022, BOEM, through its 
contractor, will hold the auction. The first round of the auction will 
start at 9:00 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 will last 
1-business day, but it may continue on consecutive business days, as 
necessary, until the auction ends in accordance with the procedures 
described in the ``Auction Procedures'' section of this notice.
    iii. Announce Provisional Winners: BOEM will announce the 
provisional

[[Page 2448]]

winners of the lease sale after the auction ends.
    c. From the Auction to Lease Execution:
    i. Refund Non-Winners: Once the provisional winners have been 
announced, BOEM will return the non-winners' bid deposits.
    ii. Department of Justice (DOJ) Review: DOJ will have 30 days in 
which to conduct an antitrust review of the auction, pursuant to 43 
U.S.C 1337(c).
    iii. Delivery of the Lease: BOEM will send three lease copies to 
each winner, with instructions for executing the lease. The first 
year's rent is due 45-calendar days after the winners receive the lease 
copies for execution.
    iv. Return the Lease: Within 10-business days of receiving the 
lease copies, the auction winners must post financial assurance, pay 
any outstanding balance of their bonus bids (i.e., winning monetary bid 
minus applicable bid deposit), and sign and return the three executed 
lease copies. The winners may request extensions to the 10-day 
deadline, and BOEM may grant such extensions if BOEM determines the 
delay to be caused by events beyond the requesting winner's control, 
pursuant to 30 CFR 585.224(e).
    v. Execution of Lease: Once BOEM has received the signed lease 
copies and verified that all other required materials have been 
received, BOEM will make a final determination regarding its issuance 
of the leases and will execute the leases, if appropriate.
    IV. Area Offered for Leasing: In response to comments received on 
the PSN and consultation with Federal agencies, BOEM is offering six 
lease areas totaling 488,201 acres for sale through this notice (Figure 
1). The eight areas in the PSN have been reoriented and reduced by 22% 
to address ocean user conflicts in response to comments and input from 
ocean users, including the fishing industry, the U.S. Coast Guard 
(USCG) and navigation interests, the National Marine Fisheries Service 
(NMFS), and the Department of Defense (DOD). Lease Area OCS-A 0543 as 
identified in the PSN will not be offered for leasing at this time in 
response to issues raised by the fishing industry and DOD, as well as 
to allow for increased flexibility in the ongoing siting of an adjacent 
fairway proposed by the USCG. If circumstances change, BOEM may 
reconsider this area in a future sale. In addition, at this time, BOEM 
decided to remove from leasing consideration several areas that overlap 
with both fishing activity and seafloor features identified by NMFS and 
other stakeholders as potentially sensitive to impacts from offshore 
wind facility construction. These removals reduced the viability of 
OCS-A 0540 as a standalone Lease Area. Therefore, BOEM expanded the 
western boundary of OCS-A 0539 and removed proposed lease OCS-A 0540. 
The removal of OCS-A 0543 also negated the justification for the area 
formerly called a ``transit corridor'' (running southwest by northeast) 
between what was previously OCS-A 0543 and OCS-A 0540. The removal of 
this transit corridor allowed for a westward expansion of the 
boundaries of OCS-A 0541 and OCS-A 0542, as depicted in the map of the 
areas linked below. Comments received regarding fishing activity and 
seafloor features also resulted in no leases being offered within 2.5 
nautical miles (nmi) of the Mid-Atlantic Scallop Access Area.
    The area available for sale will be auctioned as six leases:

             Table 1 to Section IV--ATLW-8 Final Lease Areas
------------------------------------------------------------------------
                                                            No surface
                  Lease                     Total acres      occupancy
                                                              (acres)
------------------------------------------------------------------------
Lease OCS-A 0537........................          71,522  ..............
Lease OCS-A 0538........................          84,332          12,810
Lease OCS-A 0539........................         125,964          11,687
Lease OCS-A 0541........................          79,351           3,212
Lease OCS-A 0542........................          83,976           7,082
Lease OCS-A 0544........................          43,056
------------------------------------------------------------------------

BILLING CODE 4310-MR-P

[[Page 2449]]

[GRAPHIC] [TIFF OMITTED] TN14JA22.000

BILLING CODE 4310-MR-C
    a. Transit Corridors: In the PSN, BOEM solicited comments on 
proposed transit corridors in Hudson South. USCG pointed out that the 
term ``transit corridor'' is not defined or recognized in law, 
regulation, or international convention. As such, the use of the term 
will likely add confusion. BOEM will not use the term in this sale or 
future

[[Page 2450]]

lease sales or other actions. The remaining feedback BOEM received 
through PSN comments and meetings with the fishing community was 
largely positive. Therefore, the following lease areas have 2.44 nmi of 
unleased ocean space between them: OCS-A 0538 and OCS-A 0539 as well as 
between OCS-A 0539 and OCS-A0541/OCS-A 0542. These areas remain open 
ocean in which BOEM is not offering a lease. The Permanent 
International Association of Navigation Congresses World Association of 
Waterborne Transport Infrastructure and Maritime Institute Netherlands 
calculations and guidelines as well as the USCG draft Port Access Route 
Study (USCG-2020-0172) were used to inform our analysis. We note that 
the USCG draft Port Access Route Study (USCG-2020-0172) suggests that 
formal establishment of shipping safety fairways or other routing 
measures within a wind farm are not necessary to facilitate safe 
transit.
    b. Areas of No Surface Occupancy: BOEM generally does not lease in 
increments smaller than an aliquot, which is defined as 1/16th of an 
OCS lease block (2,304 hectares or 5,693.29 acres). To accommodate the 
desired distances between surface structures, select portions of the 
lease areas in the Hudson South WEA (OCS-A 0538, 0539, 0541, 0542) will 
be offered for sale, but no surface occupancy will be permitted, as 
described in Addendum A of each respective lease.
    c. Habitat Avoidance and Facilitating Fishing Vessel Activity: 
Commenters recommended that BOEM remove from leasing consideration 
habitat features that could be adversely impacted by future offshore 
wind facility development. These areas were primarily represented by 
the New Jersey Department of Environmental Protection's ``Prime Fishing 
Area'' data. Additionally, fishers have requested that offshore wind 
facilities be designed in a manner that, among other things, provides 
for safe transit and fishing through and adjacent to future offshore 
wind facilities. In the Hudson South and the Central Bight WEAs, BOEM 
removed from leasing consideration areas that met these multiple 
avoidance recommendations. In Hudson South, BOEM removed areas adjacent 
to the Mid-Atlantic Scallop Access Area and areas to the west of OCS-A 
0539 that are fished by the Atlantic surfclam fishery. In the Central 
Bight WEA, the southern portion of OCS-A 0537 was removed due to 
multiple factors, including fishing activity and seafloor features.
    d. Map of the Area Offered for Leasing: A map of the Lease Areas, 
and GIS spatial files X, Y (eastings, northings) UTM Zone 18, NAD83 
Datum, and geographic X, Y (longitude, latitude), NAD83 Datum can be 
found on BOEM's website at: https://www.boem.gov/renewable-energy/state-activities/new-york-bight. A large-scale map of the Lease Areas, 
showing boundaries of the area with numbered blocks, is available from 
BOEM upon request at the following address: Bureau of Ocean Energy 
Management, Office of Renewable Energy Programs, 45600 Woodland Road, 
VAM-OREP, Sterling, Virginia 20166, Phone: (703) 787-1300, Fax: (703) 
787-1708.
    V. Environmental Review: On August 10, 2021, BOEM announced the 
availability of a draft Environmental Assessment (EA) that assesses the 
potential impacts of the issuance of commercial and research leases 
within the identified WEAs of the NY Bight, and the granting of rights-
of-way and rights-of-use and easement in the region. The EA focuses on 
potential environmental consequences of site characterization 
activities and site assessment activities. The EA also considers 
project easements associated with each potential lease issued and 
grants for subsea cable corridors in the NY Bight. The availability of 
the Final EA and Finding of No Significant Impact was announced on 
December 16, 2021. BOEM determined that the Proposed Action would not 
cause any significant impacts and implementing the Proposed Action does 
not constitute a major Federal action significantly affecting the 
quality of the human environment within the meaning of section 
102(2)(c) of the National Environmental Policy Act of 1969. BOEM will 
conduct additional environmental reviews upon receipt of a lessee's 
proposed project-specific plans, such as a Site Assessment Plan (SAP) 
or Construction and Operations Plan (COP).
    VI. New and Modified Lease Stipulations: Based on feedback 
provided, BOEM is adding lease stipulations that, though discussed 
conceptually, were not explicitly proposed in the lease packages 
associated with the PSN. BOEM also is refining certain stipulations in 
the PSN and previous lease packages.
    a. Reporting requirements: In an effort to require early and 
regular engagement with Tribes and ocean users, underserved 
communities, and other stakeholders (collectively ``Tribes and 
parties'') that may be potentially affected by the project activities 
on the OCS, BOEM is building upon an existing lease stipulation to 
require a semi-annual progress report. Within the progress report, 
Lessees will identify Tribes and parties potentially affected by 
proposed activities and provide updates on engagement activities, 
impacts on or benefits to the Tribes and parties due to the proposed 
activities, and how, if at all, a project has been informed or altered 
to address those challenges or benefits, as well as any planned 
engagement activities during the next reporting period. In 
acknowledgment of the existing and growing consultation burden placed 
on many of the Tribes and parties, the stipulation also requires, to 
the maximum extent practicable, that Lessees coordinate with one 
another on engagement activities. It is BOEM's intention that this 
requirement to coordinate engagement apply not only to meetings 
proposed by Lessees, but also to reasonable requests to coordinate 
engagement requested by Tribes and parties. In addition, the 
stipulation requires that the progress report incorporate separate 
lease requirements for the development of communication plans for 
fisheries (Fisheries Communication Plan (FCP)), Tribes (Native American 
Tribes Communication Plan), and agencies (Agency Communication Plan), 
which serve to guide engagement activities with those groups. 
Consistent with current practice, the FCP is a requirement of the 
lease; however, BOEM has added additional elements to include in the 
FCP based on comments received. Lastly, the progress report must also 
include an update on activities executed under any survey plan.
    b. Transmission Planning: BOEM is continuing a planned approach to 
transmission and is evaluating options including the use of cable 
corridors, regional transmission systems, meshed systems, and other 
mechanisms. Therefore, BOEM may condition COP approval on the 
incorporation of such methods where appropriate. BOEM encourages those 
who obtain leases from this sale to engage in early coordination with 
adjacent lessees, states, Tribal Nations, and other ocean users to 
identify ways to minimize impacts from transmission. In addition, BOEM 
has modified the lease stipulations concerning communication with 
Tribal Nations and parties to explicitly seek input and discussion 
surrounding transmission easements prior to proposing such easements.
    c. Birds and Bats: During Endangered Species Act (ESA) 
consultation, the U.S. Fish and Wildlife Service recommended in its 
October 15, 2021, letter to BOEM the installation of automated Motus 
telemetry tracking stations on meteorological buoys to help address

[[Page 2451]]

information gaps on offshore movements of birds and bats, including 
ESA-listed species. Therefore, BOEM is including a stipulation 
requiring the use of such tracking stations.
    d. Project Labor Agreements and Supply Chain: BOEM is committed to 
a clean energy future, workforce development and safety, and 
establishment of a durable domestic supply chain that can sustain the 
U.S. offshore wind energy industry. To advance this vision, BOEM has 
included three lease stipulations in the NY Bight FSN that will 
encourage union-built projects and contribute towards establishing a 
domestic supply chain:
    i. The first stipulation requires lessees to make every reasonable 
effort to enter a project labor agreement covering the construction 
stage of any project proposed for the Lease Areas.
    ii. The second stipulation requires lessees to establish a 
statement of goals in which the lessee will describe its plans for 
contributing to the creation of a robust and resilient U.S.-based 
offshore wind industry supply chain. The lessee must provide regular 
progress updates to BOEM, and BOEM will make those updates publicly 
available.
    iii. The last stipulation incentivizes the lessee to procure major 
offshore wind energy components domestically. For the Lease Areas, BOEM 
will set the fee rate at 0.02 (i.e., 2%) for the entire life of 
commercial operations. Should the lessee satisfy the terms of the 
stipulation by meaningfully and substantially assembling or 
manufacturing major components in the United States, they may be 
eligible for a 1% operating fee rate for a period of five years.
    e. Surface Structure Layout and Orientation: Where one lease abuts 
a neighboring BOEM lease area, each lessee must endeavor to implement a 
layout of surface structures that facilitates full enjoyment of the 
lease and allows for a structure layout that contains two common lines 
of orientation across the adjacent leases (as described in Navigation 
and Vessel Inspection Circular 01-19). Where such a design cannot be 
agreed upon among adjacent lessees, each lessee will be required to 
incorporate a 1-nmi setback from the boundary with the neighboring 
lease where no surface structures will be permitted.
    f. Endangered Species Act Programmatic Consultation: BOEM has 
completed a programmatic consultation with the NMFS under section 7 of 
the ESA. Federal partners that were co-action agencies on the 
programmatic consultation include the Bureau of Safety and 
Environmental Enforcement, U.S. Army Corps of Engineers, and the U.S. 
Environmental Protection Agency. On June 29, 2021, NMFS issued a Letter 
of Concurrence under the ESA (https://www.boem.gov/renewable-energy/final-nlaa-osw-programmatic) that covers site characterization (high 
resolution geophysical (HRG), geotechnical, and biological surveys) and 
site assessment and data collection (deployment, operation, and 
retrieval of meteorological and oceanographic data buoys) activities 
associated with Atlantic OCS leases. As a result of this consultation, 
project design criteria (PDCs) and best management practices (BMPs) 
associated with the mitigation, monitoring, and reporting conditions 
have been developed for those data collection activities covered in the 
consultation. The PDCs and BMPs pertain to mitigation, monitoring, and 
reporting conditions for reducing noise exposure to protected species 
from HRG surveys, avoiding vessel interactions with protected species, 
and mooring design and marine debris requirements to avoid entanglement 
of listed species. Similar to the requirements for threatened and 
endangered species and critical habitat under the ESA, BOEM requires 
mitigation, monitoring, and reporting conditions for all marine 
mammals. These PDCs and BMPs will be lease requirements for NY Bight 
OCS leasing activities and are found in the document Project Design 
Criteria and Best Management Practices for Data Collection Associated 
with Atlantic Offshore Wind Leases found at: https://www.boem.gov/renewable-energy/nmfs-esa-consultations.
    VII. Potential Future Restrictions: Prospective bidders should be 
aware of potential conflicts with existing uses of the OCS by the DOD 
and USCG, among others. BOEM coordinates with the DOD and USCG 
throughout our leasing process. A December 2020 letter from the DOD 
summarizes our most recent consultations and is available at: https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/PUBLIC-NY-Bight-DOD.pdf.
    a. Height Restrictions: Development of Lease Areas in the Hudson 
South WEA could adversely affect U.S. Air Force Weather Division's Next 
Generation Weather Radar by limiting the ability to track tropical 
storms moving towards the region if turbine heights exceed 1,000 feet; 
however, DOD has informed BOEM that more analysis is needed on specific 
project proposals to determine the extent of interference, if any. 
Lessees will be expected to coordinate with the DOD Military Aviation 
and Installation Assurance Siting Clearinghouse as they design their 
proposed facilities to assess the impact on radar operations. If 
interference from turbines heights greater than 1,000 feet is 
identified, the DOD has indicated a condition of COP approval may be 
necessary that would require curtailment during severe weather events.
    b. Air Surveillance and Radar: The North American Aerospace Defense 
Command mission may be affected by the development of the Lease Areas. 
Lessees will be expected to coordinate with the DOD Military Aviation 
and Installation Assurance Siting Clearinghouse as they design their 
proposed facilities to assess the level of impact on radar operations. 
Mitigation measures or conditions of a COP approval may necessitate 
mitigation of the identified interference.
    c. Potential Future Conflicts with OCS-A 0544: The PSN identified a 
potential conflict in the Hudson North WEA (OCS-A 0544) with a new 
shipping safety fairway designation, as proposed by USCG, to 
accommodate vessel traffic travelling across the NY Bight from the 
Delaware Bay area to east of Montauk. The USCG published a final Port 
Access Route Study on January 3, 2022 that proposed an adjusted fairway 
route that avoids this conflict. Potential bidders should be aware that 
there could be future changes or necessary mitigation measures relating 
to the developable area of the lease if the proposed fairway route is 
adjusted during the USCG's subsequent fairway rulemaking process.
    VIII. Lease Terms and Conditions: BOEM has included terms, 
conditions, and stipulations for the OCS commercial wind leases to be 
offered through this sale. After the leases are issued, BOEM reserves 
the right to require compliance with additional terms and conditions 
associated with approval of a SAP or COP. The leases are available on 
BOEM's website at: https://www.boem.gov/renewable-energy/state-activities/new-york-bight. The leases include the following five 
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); and
     Addendum ``E'' (Rent Schedule).
    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.

[[Page 2452]]

    The most recent version of BOEM's renewable energy commercial lease 
form (BOEM-0008) is available on BOEM's website at: https://www.boem.gov/BOEM-OCS-Operation-Forms/.
    Pursuant to 30 CFR 585.601, a leaseholder wishing to submit a SAP 
must do so within 12 months of lease issuance. If the lessee intends to 
continue to hold the lease into its operations term, the lessee must 
submit a COP at least 6 months before the end of the site assessment 
term.
    IX. 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.
    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 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 as defined in 30 CFR 585.237 (the ``Lease Anniversary''). 
Once commercial operations under the lease begin, BOEM will charge rent 
only for the portions of the lease remaining undeveloped (i.e., non-
operating acreage). For a 71,522 acre lease (the size of OCS-A 0537), 
the rent payment will be $214,566 per year if no portion of the lease 
area is authorized for commercial operations.
    If the lessee submits an application for relinquishment of a 
portion of its leased 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 lease area. Later relinquishments of any 
portion of the lease area will reduce the lessee's rent payments 
starting in the year following BOEM's approval of the relinquishment. 
The lessee must also 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 as outlined 
in 30 CFR 585.508. Annual rent for a project easement that is 200 feet 
wide and centered on the transmission cable is $70 per statute mile. 
For any additional acreage required, the lessee must also pay the 
greater of $5 per acre per year or $450 per year.
    b. Operating Fee: For purposes of calculating the initial annual 
operating fee payment pursuant to 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 is 
due within 45 days of the commencement of commercial operations. 
Thereafter, subsequent annual operating fee payments are due on or 
before the 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 would 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 1,028-megawatt (MW) 
wind facility operating at a 40% capacity (i.e., capacity factor of 
0.4) with an annual average regional wholesale power price of $40/
megawatt hour (MWh) and an operating fee rate of 0.02 will be 
calculated as follows:
[GRAPHIC] [TIFF OMITTED] TN14JA22.001

    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 will set the fee rate at 0.02 
(i.e., 2%) for the entire life of commercial operations. Should the 
lessee satisfy the terms of the stipulation by meaningfully and 
substantially assembling or manufacturing major components in the 
United States, they may be eligible for a 1% operating fee rate for a 
period of five years.
    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 Fabrication and 
Installation Report (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 is 
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% 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.
    The capacity factor for the year in which the commercial operation 
date occurs, and for the first 6 full years of commercial operations on 
the lease, is set to 0.4 (i.e., 40%). At the end of the sixth year, the 
capacity factor may be adjusted to reflect the performance over the 
previous five years based upon the actual metered electricity 
generation at the delivery point to the electrical grid. Similar 
adjustments to the capacity factor may be made once every five years 
thereafter.
    iv. 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. For the leases offered in this sale, BOEM will use the simple 
hourly average of the spot price indices for New York Independent 
System Operators New York City (Zone J).
    c. Financial Assurance: Within 10-business days after receiving the 
lease copies and pursuant to 30 CFR 585.515-.516, the provisional 
winners of the leases must provide an initial lease-specific bond or 
other approved means of meeting the lessor's initial financial 
assurance requirements, in the amount of $100,000. The provisional 
winners 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

[[Page 2453]]

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 on cost estimates for meeting all 
accrued lease obligations at the respective stages of development. BOEM 
will determine the required amount of supplemental and decommissioning 
financial assurance on a case-by-case basis. The financial terms 
described above can be found in Addendum ``B'' of the leases, which 
BOEM has made available with this notice on its website at: https://www.boem.gov/renewable-energy/state-activities/new-york-bight.
    X. Bidder's Financial Form: Each bidder must fill out the BFF 
referenced in this FSN. BOEM has also made a copy of the form available 
with this notice on its website at: https://www.boem.gov/renewable-energy/state-activities/new-york-bight. 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). 
BOEM will not consider BFFs submitted by bidders for previous lease 
sales to satisfy the requirements of this auction. If a bidder does not 
submit a BFF by January 26, 2022, BOEM, in its sole discretion, may 
grant an extension to that bidder only if BOEM determines the bidder's 
failure to timely submit a BFF was caused by events beyond the bidder's 
control. BOEM will only accept an original, executed paper copy of the 
BFF. The BFF must be executed by an authorized representative listed in 
the qualifications package on file with BOEM as authorized to bind the 
company.
    XI. Bid Deposit: A bid deposit is an advance cash payment submitted 
to BOEM to participate in the auction. After creating an account in 
pay.gov (if necessary), bidders may use the Bid Deposit Form on the 
pay.gov website to leave a deposit. Each bidder must submit a bid 
deposit of $5,000,000 no later than February 9, 2022. Any bidder who 
fails to submit the bid deposit by this deadline may be disqualified 
from participating in the auction.
    Following the auction, bid deposits will be applied against bonus 
bids or other obligations owed to BOEM. If the bid deposit exceeds a 
bidder's total financial obligation, BOEM will refund the balance of 
the bid deposit to the bidder. BOEM will refund bid deposits to non-
winners once BOEM has announced the provisional winner.
    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 
the bidder's $5,000,000 bid deposit. In such a circumstance, BOEM 
reserves the right to determine which bid would have won in the absence 
of the bid previously determined to be the winning bid and to offer a 
lease pursuant to this next highest bid.
    XII. Minimum Bid: The minimum bid is the lowest bid that BOEM will 
accept as a winning bid, and it is where BOEM will start the bidding in 
the auction. BOEM has established a minimum bid of $100.00 per acre for 
this lease sale.
    XIII. Auction Procedures: As authorized under 30 CFR 585.220(a)(2) 
and 585.221(a)(1), BOEM will use an ascending bidding auction with cash 
as the bid variable for this lease sale. BOEM will start the auction 
using the minimum bid prices for each Lease Area and will increase 
those prices incrementally until no more than one active bidder per 
Lease Area remains in the auction.
    a. The Auction: Using an online bidding system to host the auction, 
BOEM will start the bidding for Lease Areas OCS-A 0537 through 0539, 
OCS-A 0541, OCS-A 0542, and OCS-A 0544, as described below. Bidders may 
bid for at most one of the offered Lease Areas in each round of the 
auction, and ultimately acquire at most one of the Lease Areas in the 
auction.

------------------------------------------------------------------------
                  Lease area                       Acres     Minimum bid
------------------------------------------------------------------------
OCS-A 0537....................................       71,522   $7,152,200
OCS-A 0538....................................       84,332    8,433,200
OCS-A 0539....................................      125,964   12,596,400
OCS-A 0541....................................       79,351    7,935,100
OCS-A 0542....................................       83,976    8,397,600
OCS-A 0544....................................       43,056    4,305,600
------------------------------------------------------------------------

    b. Live Bids: The auction will be conducted in a series of rounds. 
At the start of each round, BOEM will state an asking price for each 
Lease Area. If a bidder is willing to meet the asking price for one of 
the Lease Areas, it will indicate its intent by submitting a bid equal 
to the asking price. A bid at the full asking price is referred to as a 
``live bid.'' To participate in the next round of the auction, a bidder 
must have submitted a live bid for one of the Lease Areas in each 
previous round, or BOEM must have carried forward a bidder's bid from a 
previous round. As long as there are two or more live bids (including 
bids carried forward) for at least one of the Lease Areas, the auction 
moves to the next round. If a bid is uncontested, it is automatically 
carried forward to the next round. BOEM will raise the asking price for 
each of the Lease Areas that has received two or more live bids in the 
previous round. Asking price increments will be determined based on 
several factors, including (but not necessarily limited to) the 
expected time needed to conduct the auction and the number of rounds 
that have already occurred. BOEM reserves the right to increase or 
decrease bidding increments as appropriate.
    A bidder may switch its live bid from one Lease Area to another 
between rounds only if its bid from the previous round was contested. 
For example, a bidder cannot switch from OCS-A 0537 to OCS-A 0538 
unless there was at least one other live bid for OCS-A 0537 in the 
prior round. If the bid was uncontested in the previous round, the 
bidder cannot switch Lease Areas, and its bid in the previous round is 
carried forward to the next round. If another bidder places a live bid 
on OCS-A 0537 later in the auction, BOEM will stop automatically 
carrying forward the previously uncontested bid on that Lease Area. The 
bidder that placed the previously carried forward bid is then free to 
bid on any of the Lease Areas in the next round at the new asking 
prices.
    If a bidder decides to stop bidding when its bid is contested, 
there remain circumstances in which BOEM may select the bid as the 
winning bid (e.g., if the bid is ultimately selected in the winner 
determination that is described in detail below, or if the winning bid 
is disqualified at the award stage of the auction and BOEM selects 
another bid). In these circumstances, 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 will disclose to all bidders that submitted 
bids: (1) The number of live bids or bids carried forward for each of 
the Lease Areas in the previous round of the auction (i.e., the level 
of demand at the asking price); and (2) the asking price for each of 
the Lease Areas in the upcoming round of the auction.
    c. Exit Bids: In any round after the first round, a bidder may 
submit an ``exit bid'' (also known as an ``intra-round bid'') only for 
the same Lease Area as the bidder's contested live bid in the previous 
round. An exit bid is a bid that is greater than the previous round's 
asking price, but less than the current round's asking price for that 
Lease Area. An exit bid is not a live bid, and it represents the final 
bid that a bidder may submit in the auction. A bidder may not submit 
both an exit bid on one of the Lease Areas and a live bid

[[Page 2454]]

on a different Lease Area. During the auction, the exit bid can be seen 
only by BOEM and not by other bidders. BOEM will not raise the asking 
price in a Lease Area with only exit bids in a given round because BOEM 
only raises asking prices when a Lease Area receives multiple live 
bids. As soon as each of the Lease Areas has one or zero live bids 
(including bids carried forward, which could include an exit bid if 
another bidder does not bid on this area in a subsequent round), the 
auction is over, regardless of the number of exit bids on each area.
    d. Determination of Provisional Winners: After the bidding ends, 
BOEM will determine the provisionally winning bids for each Lease Area 
by a two-stage procedure. In stage 1, the highest bid (live bid or exit 
bid) received for each Lease Area in the final round will be designated 
the provisionally winning bid, if there is a single highest bid. In the 
event of a tie (i.e., if two or more bidders submitted identical 
highest exit bids for the same Lease Area), the selection of one of the 
highest exit bids will be deferred until stage 2.
    In stage 2, BOEM will consider bids from all bidding rounds for 
Lease Areas that were not assigned in stage 1 by bidders who were not 
assigned one of the Lease Areas in stage 1. BOEM will select the 
combination of such bids that maximizes the sum of the bid amounts of 
the selected bids, subject to the following constraints: (1) Each Lease 
Area that received multiple highest exit bids in the final round (but 
no live bid) is assigned to one of the bidders that submitted the 
highest exit bid; (2) at most one bid from each bidder can be selected; 
and (3) at most one bid for each Lease Area can be selected. If there 
is a unique combination of bids that solves this maximization problem, 
then these bids are deemed to be the remaining provisionally winning 
bids. If two or more combinations of bids tie by producing the same 
maximized sum of bid amounts, the auction system will select one of the 
combinations by generating pseudorandom numbers. The provisional 
winners will pay the amounts of their provisionally winning bids. 
Provisional winners may be disqualified if they are 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 cash balance of its bid (i.e., winning bid amount minus the 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 fails to 
timely sign and pay for the lease 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 bid amounts and 
provisional winners. The bid results, including exit bids, will be 
published on BOEM's website after review of the results and 
announcement of the provisional winners.
    e. Authorized Individuals and Bidder Authentication: A company that 
is eligible to participate in the auction will identify on its BFF up 
to three individuals who are authorized to bid on behalf of the 
company, including their names, business telephone numbers, and email 
addresses. After BOEM has processed the bid deposits, the auction 
contractor will send several emails to the authorized individuals. The 
emails will contain user login information and instructions for 
accessing the bidder manual for the auction system and the auction 
system technical supplement (ASTS).
    The auction system will require software tokens for two-factor 
authentication. To set up the tokens, authorized individuals must 
download an app onto their smartphone or tablet via a recent operating 
system. One of the emails sent to authorized individuals will contain 
instructions for installing the app and the credentials needed to 
activate the software token. A short telephone conversation with the 
auction contractor may also be needed to use the credentials. The login 
information, along with the tokens, will be tested during the mock 
auction. If an eligible 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.
    f. Timing of Auction: The auction will begin at 9:00 a.m. EST on 
February 23, 2022. Bidders may log in as early as 8:30 a.m. EST on that 
day. BOEM recommends that bidders log in earlier than 9:00 a.m. EST 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 anticipated start times, end 
times, and recess times of each round in the auction. Each round is 
structured as follows:
     Round bidding begins;
     Bidders enter their bids;
     Round bidding ends and the recess begins;
     During the recess, previous round results and next round 
asking prices 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 will be shorter. Recesses are anticipated to last approximately 
10 minutes. This description of the auction schedule is tentative. 
Bidders should consult the auction schedule on the auction system 
during the auction for updated times. Bidding will continue until about 
6:00 p.m. EST each day. BOEM anticipates that the auction will last 1- 
to 2-business days, but may continue for additional business days as 
necessary until the auction has concluded.
    g. 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 end of the round to place bids. Bidders 
should place bids according to the procedures described in this notice 
and the ASTS. Information about the round results will only be made 
available after the round has closed, so there is no strategic 
advantage to placing bids early or late in the round.
    The ASTS will elaborate on the auction procedures described in this 
FSN. In the event of an inconsistency between the ASTS and the FSN, the 
FSN is controlling.
    h. Alternate Bidding Procedures: Redundancy is the most effective 
way to mitigate technical and human issues during an auction. Bidders 
should strongly consider authorizing more than one individual to bid in 
the auction--and confirming during the mock auction that each 
individual is able to access the auction system. A 4G card or other 
form

[[Page 2455]]

of wireless access is helpful in case a company's main internet 
connection should fail. As a last resort, an authorized individual 
facing technical issues may request to submit its bid by telephone. In 
order to be authorized to place a telephone bid, an authorized 
individual must call the help desk number listed in the auction manual 
before the end of the round. BOEM will authenticate the caller's 
identity, including requiring the caller to provide a code from the 
software token. The caller must also explain the reasons why a 
telephone bid must be submitted. BOEM may, in its sole discretion, 
permit or refuse to accept a request for the placement of a bid using 
this alternate bidding procedure.
    i. Prohibition on Communications Between Bidders During Auction: 
During the auction, bidders are prohibited from communicating with each 
other regarding their participation in the auction. Also, during the 
auction, bidders are prohibited from communicating to the public 
regarding any aspect of their participation or lack thereof in the 
auction, including, but not limited to, through social media, updated 
websites, or press releases.
    XIV. Post-Auction Procedures:
    a. Rejection or Non-Acceptance of Bids: BOEM reserves the right and 
authority to reject all bids that do not satisfy the requirements and 
rules of the auction, the FSN, or applicable regulations and statutes.
    i. 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 provisionally winning bidder is found to have 
engaged in anti-competitive behavior in connection with its 
participation in the competitive bidding process, 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. 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 or not to bid on one of 
the Lease Areas;
    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), BOEM will decline to award a lease 
if the Attorney General, in consultation with the Federal Trade 
Commission, determines that awarding the lease would be inconsistent 
with the 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 or consult 
legal counsel.
    b. 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 each provisionally winning bidder. 
Within 10-business days after receiving the lease copies, the 
provisionally winning bidders must:
    1. Sign and return the lease copies on the bidder's behalf;
    2. File financial assurance, as required under 30 CFR 585.515-.537; 
and
    3. Pay by electronic funds transfer (EFT) the balance (if any) of 
the bonus bid (winning bid less the 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/renewable-energy/state-activities/new-york-bight.
    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 10-business day deadline for signing a lease, 
filing the required financial assurance, and paying the balance of the 
bonus bid if BOEM determines the delay was caused by events beyond the 
provisionally winning bidder's control.
    If a 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 will forfeit 
its bid deposit. Also, in such a case, BOEM reserves the right to 
identify the next highest bid for that lease area submitted during the 
lease sale by a bidder who has not won one of the other Lease Areas and 
to offer the lease to that bidder pursuant to its bid.
    Within 45-calendar days of the date that a provisionally winning 
bidder receives copies of the lease, it must pay the first year's rent 
using the pay.gov and Renewable Energy Initial Rental Payment 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/renewable-energy/state-activities/new-york-bight.
    c. Non-Procurement Debarment and Suspension Regulations: Pursuant 
to regulations at 43 CFR part 42, subpart C, an OCS renewable energy 
lessee must comply with the Department of the Interior's non-
procurement debarment and suspension regulations at 2 CFR parts 180 and 
1400. The lessee must also communicate this requirement to persons with 
whom the lessee does business relating to this lease by including this 
term as a condition in their contracts and other transactions.
    d. Force Majeure: The Program Manager of BOEM's Office of Renewable 
Energy Programs has the discretion to change any auction details 
specified in the FSN, including the date and time, in case of a force 
majeure event that the Program Manager deems may interfere with a fair 
and proper lease sale process. Such events may include, but are not 
limited to: Natural disasters (e.g., earthquakes, hurricanes, floods, 
blizzards), wars, riots, acts of terrorism, fire, strikes, civil 
disorder, or other events of a similar nature. In case of such events, 
BOEM will notify all qualified bidders via email, phone, or through the 
BOEM website at: https://www.boem.gov/Renewable-Energy-Program/index.aspx.
    Bidders should call 703-787-1121 if they have concerns.
    e. Withdrawal of Blocks: BOEM reserves the right to withdraw all or 
portions of the Lease Areas prior to executing the leases with the 
winning bidders.
    f. Appeals: The appeals procedures are provided in BOEM's 
regulations at 30 CFR 585.225 and 585.118(c). Pursuant to 30 CFR 
585.225:
    (a) If BOEM rejects your bid, BOEM will provide a written statement 
of the reasons and refund any money deposited with your bid, without 
interest.
    (b) You will then be able to ask the BOEM Director for 
reconsideration, in

[[Page 2456]]

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).
    XV. Protection of Privileged or Confidential Information: BOEM will 
protect privileged and confidential information that you submit, as 
required by the Freedom of Information Act (FOIA). Exemption 4 of FOIA 
applies to ``trade secrets and commercial or financial information that 
you submit that is privileged or confidential.'' 5 U.S.C. 552(b)(4). If 
you wish to protect the confidentiality of such information, clearly 
mark it ``Contains Privileged or Confidential Information'' and 
consider submitting such information as a separate attachment. BOEM 
will not disclose such information, except as required by FOIA. 
Information that is not labeled as privileged or confidential may be 
regarded by BOEM as suitable for public release. Further, BOEM will not 
treat as confidential aggregate summaries of otherwise confidential 
information.
    Authority: 43 U.S.C. 1337(p); 30 CFR 585.211 and 585.216.

Amanda Lefton,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2022-00504 Filed 1-13-22; 8:45 am]
BILLING CODE 4310-MR-P