Pacific Wind Lease Sale 1 (PACW-1) for Commercial Leasing for Wind Power on the Outer Continental Shelf in California-Final Sale Notice, 64093-64110 [2022-22871]
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Federal Register / Vol. 87, No. 203 / Friday, October 21, 2022 / Notices
Request for Identification of Potential
Alternatives, Information, and
Analyses Relevant to the Proposed
Action
structures, however, detract from the
undeveloped quality of wilderness.
Seasonal closure of the Park detracts
from the opportunity for unconfined
wilderness recreation.
Anticipated Permits and Authorizations
The NPS anticipates informally
consulting with the U.S. Fish and
Wildlife Service under section 7 of the
Endangered Species Act for unlikely
impacts to threatened and endangered
species. The NPS will use and
coordinate the NEPA public scoping
process to help fulfill the public
involvement requirements under the
National Historic Preservation Act (54
U.S.C. 306108) as provided in 36 CFR
800.2(d)(3).
NPS initiated consultation for this
undertaking in compliance with Section
106 of the National Historic
Preservation Act regarding the
treatments of historic properties in
wilderness beginning in 2010. These
consultation efforts and documented
meetings will be used to inform this
effort, as well as continuing
consultation efforts.
Schedule for the Decision-Making
Process
• Agencies have two years from the
date of the issuance of the notice of
intent, to the date a record of decision
is signed, to complete an Environmental
Impact Statement (40 CFR 1501.10).
• The NPS expects to make the Draft
EIS available to the public in Fall 2022.
• After public review and comment,
the NPS expects to make the Final EIS
available to the public in Spring 2023.
• At least 30 days after the Final EIS
is available, the record of decision will
be completed in accordance with
applicable timeframes established in 40
CFR 1506.11.
Public Scoping Process
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This notice of intent initiates the
scoping process, which guides the
development of the EIS. Written
comments may be submitted at any time
during the scoping process. See the
ADDRESSES section (above) and the
Submitting Comments section (below)
for more information. There will be no
public meetings during the public
scoping period.
Reasonable Accommodations
Persons needing reasonable
accommodations should contact the
park, using one of the methods listed in
the FOR FURTHER INFORMATION CONTACT
section as soon as possible.
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The NPS requests possible
alternatives, information, and analyses
from all interested parties. The NPS will
consider these comments in developing
the Draft EIS. Specifically, the NPS is
seeking:
• Potential effects that the
alternatives could have on other aspects
of the human environment, including
ecological, aesthetic, historic, cultural,
economic, social, environmental justice,
or health effects;
• Other possible reasonable
alternatives that the NPS should
consider, including additional or
alternative avoidance, minimization,
and mitigation measures;
• Other information relevant to the
Wilderness Stewardship Plan and its
impacts on the human environment.
Submitting Comments
If you wish to comment, you may
submit comments by the methods listed
above in the ADDRESSES section.
Comments will not be accepted by fax,
email, or by any method other than
those specified above. Bulk comments
in any format (hard copy or electronic)
submitted on behalf of others will not be
accepted. Comments must be provided
prior to the close of the comment period
and should clearly articulate the
reviewer’s concerns and contentions.
Public Availability of Comments
Before including your address, phone
number, email address, or other
personal identifying information in your
comment, you should be aware that
your entire comment—including your
personal identifying information—may
be made publicly available at any time.
While you can ask us in your comment
to withhold your personal identifying
information from public review, we
cannot guarantee that we will be able to
do so. Comments submitted
anonymously will be accepted and
considered.
Decision Maker
The Decision Maker is the NPS
Regional Director for Interior Regions 3,
4, and 5.
Termination of 2001 EIS Process
This notice also terminates the EIS for
a Wilderness Management Plan initiated
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64093
by the NPS on October 2, 2001 (66 FR
50207).
Herbert Frost,
Regional Director, DOI Interior Regions 3, 4,
and 5.
[FR Doc. 2022–22971 Filed 10–20–22; 8:45 am]
BILLING CODE 4312–52–P
DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
[Docket No. BOEM–2022–0017]
Pacific Wind Lease Sale 1 (PACW–1)
for Commercial Leasing for Wind
Power on the Outer Continental Shelf
in California—Final Sale Notice
Bureau of Ocean Energy
Management, Interior.
ACTION: Final sale notice.
AGENCY:
This Final Sale Notice (FSN)
contains information pertaining to the
areas available for commercial wind
energy leasing on the Outer Continental
Shelf (OCS) offshore California.
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
five leases for sale using a multiplefactor bidding auction format: Lease
OCS–P 0561, Lease OCS–P 0562, Lease
OCS–P 0563, Lease OCS–P 0564, and
Lease OCS–P 0565 (Lease Areas). The
issuance of any lease resulting from this
sale would not constitute 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
BOEM decision on whether the
proposed development should be
authorized.
DATES: BOEM will hold an online mock
auction for potential bidders starting at
7:00 a.m. Pacific Standard Time (PST)/
10 a.m. Eastern Standard Time (EST) on
December 5, 2022. The monetary
auction will be held online and will
begin at 7 a.m. PST/10 a.m. EST on
December 6, 2022. Additional details
are provided in the section entitled
‘‘Deadlines and Milestones for Bidders.’’
FOR FURTHER INFORMATION CONTACT: Sara
Guiltinan, Bureau of Ocean Energy
Management, Pacific Regional Office,
Mail Stop CM 102, 760 Paseo Camarillo
(Suite 102), Camarillo, California
93010–6002, (805) 384–6345, or
sara.guiltinan@boem.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
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I. Background
The OCS Lands Act authorizes BOEM
to offer renewable energy leases for sale
on the OCS competitively, unless BOEM
determines there is no competitive
interest. On October 19, 2018, BOEM
published a Call for Information and
Nominations in the Federal Register (83
FR 53096) (‘‘2018 Call’’) that identified
three geographically distinct Call Areas
on the OCS offshore California,
delineated as the Humboldt Call Area
(offshore the north coast) and the Morro
Bay Call Area and the Diablo Canyon
Call Area (offshore the central coast). On
July 29, 2021, BOEM published a Call
for Information and Nominations in the
Federal Register (86 FR 40869) (‘‘2021
Call’’) that delineated two extensions to
the Morro Bay Call Area, known as the
East and West Extensions. In response
to the 2018 Call and 2021 Call, BOEM
identified the Humboldt Wind Energy
Area (WEA) on July 28, 2021, and the
Morro Bay WEA on November 12, 2021,
which together total 373,267 acres.
BOEM proposed this lease sale on May
31, 2022, in a Proposed Sale Notice
(PSN) published in the Federal Register
(87 FR 32443). A 61-day comment
period followed. BOEM requested any
prospective bidders wishing to
participate in a California lease sale to
submit qualification materials
postmarked no later than August 1,
2022. BOEM also hosted an auction
seminar for prospective bidders on June
16, 2022, to discuss the proposed
auction format. BOEM received 84
comment submissions in response to the
PSN, which are available on
regulations.gov (Docket ID: BOEM–
2022–0017) at: https://
www.regulations.gov/document/BOEM2022-0017-0001. BOEM has posted its
responses to the comments that were
submitted during the PSN comment
period. The document entitled,
Response to Comments, can be found on
BOEM’s website at: https://
www.boem.gov/renewable-energy/stateactivities/california.
In response to the comments received,
BOEM made several changes to the
PACW–1 sale format and procedures
from those proposed in the PSN and to
the lease stipulations in the Proposed
Leases. The changes include alterations
to the sale format, which is now a single
auction in which all the Lease Areas
will be offered. In each round of the
auction, a bidder can bid for at most one
of the offered leases at a time. A bidder
can switch between different Lease
Areas from round to round, but it must
bid in each round, and ultimately it can
acquire at most one of the leases in the
auction. Other changes from the PSN
include the addition of a 5 percent
bidding credit for bidders who have
committed to a qualifying General
Community Benefit Agreement (CBA);
an increase in the amount of the credit
offered for the Lease Area Use CBA
bidding credit from 2.5 to 5 percent; and
removal of the requirement for a 25
percent commitment of funds associated
with the workforce training and/or
supply chain development bidding
credit at the time of the submission of
the Lessee’s first Construction and
Operations Plan (COP). In addition,
BOEM developed and refined a number
of lease stipulations, based on feedback
solicited in the PSN, including
provisions to: advance Lessee
engagement with Tribes and parties that
may be affected by the Lessee’s
activities on the OCS; protect national
security; require the Lessee to
coordinate with the California Coastal
Commission on plan submissions;
require the Lessee to use an
independent Fisheries Liaison and
protect the environment through the
imposition of vessel speed
requirements, marine mammal
monitoring measures, a site-specific
spill prevention and response plan, a
critical operations and curtailment plan,
requirements related to the avoidance of
intentional contact within hard
substrate, rock outcroppings,
seamounts, or deep-sea coral/sponge
habitat, and use of low-energy
geophysical survey equipment.
II. List of Eligible Bidders
BOEM has determined that the
following 43 entities are legally,
technically, and financially qualified to
hold a commercial wind lease offshore
California, pursuant to 30 CFR 585.106
and 585.107, and therefore may
participate in this lease sale as bidders
subject to meeting the requirements
outlined in this notice. Those entities
are listed below:
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Company name
Company No.
547 Energy LLC .............................................................................................................................................................................
AEUG Offshore LLC ......................................................................................................................................................................
Algonquin Power Fund (America) Inc ...........................................................................................................................................
Arevia Power LLC ..........................................................................................................................................................................
Avangrid Renewables, LLC ...........................................................................................................................................................
BP US Offshore Wind Energy LLC ...............................................................................................................................................
California North Floating LLC ........................................................................................................................................................
California Offshore Wind Development LLC .................................................................................................................................
California South Floating LLC .......................................................................................................................................................
Castle Wind LLC ............................................................................................................................................................................
Central California Offshore Wind LLC ...........................................................................................................................................
Cademo Corporation .....................................................................................................................................................................
Cierco Project Corporation ............................................................................................................................................................
Clearway Renew LLC ....................................................................................................................................................................
Corio OSW Investments LLC ........................................................................................................................................................
CPV Offshore Wind LP ..................................................................................................................................................................
EDF Renewables Development, Inc .............................................................................................................................................
EDPR Offshore North America LLC ..............................................................................................................................................
Equinor Wind US LLC ...................................................................................................................................................................
Ferrovial Energy US 1, LLC ..........................................................................................................................................................
GW Offshore Wind LLC .................................................................................................................................................................
Hexicon USA, LLC .........................................................................................................................................................................
Ideol USA Inc .................................................................................................................................................................................
Invenergy California Offshore LLC ................................................................................................................................................
JERA Renewables NA, LLC ..........................................................................................................................................................
Marubeni Power International, Inc .................................................................................................................................................
Mission Floating Wind LLC ............................................................................................................................................................
Northcoast Floating Wind LLC ......................................................................................................................................................
Northland Power America Inc ........................................................................................................................................................
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Company name
Company No.
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Orsted North America Inc. .............................................................................................................................................................
Pacific Moon Offshore Wind LLC ..................................................................................................................................................
Pacific Offshore Wind LLC ............................................................................................................................................................
Redwood Coast Energy Authority (RCEA) ....................................................................................................................................
Redwood Coast Offshore Wind LLC .............................................................................................................................................
RWE Renewables Development, LLC ..........................................................................................................................................
RWE Offshore Wind Holdings, LLC ..............................................................................................................................................
Seaglass Offshore Wind I, LLC .....................................................................................................................................................
Seaglass Offshore Wind II, LLC ....................................................................................................................................................
Shell New Energies US LLC .........................................................................................................................................................
SSE Renewable North America Offshore Wind LLC ....................................................................................................................
TotalEnergies Renewables USA, LLC ..........................................................................................................................................
US Mainstream Renewable Power Inc .........................................................................................................................................
wpd offshore Alpha, LLC ...............................................................................................................................................................
a. Affiliated Entities: On the Bidder’s
Financial Form (BFF), discussed in
sections III(a)(i) and X below, eligible
bidders must list any other eligible
bidders with whom they are affiliated.
For the purpose of identifying affiliated
entities, ‘‘person’’ means any
individual, firm, corporation,
association, partnership, consortium, or
joint venture (when established as a
separate entity). BOEM considers two
entities to be affiliated if:
(1) They own or have common
ownership of more than 50 percent of
the voting securities, or instruments of
ownership or other forms of ownership,
of another person. Such ownership of
less than 10 percent of a person
constitutes a presumption of noncontrol that BOEM may rebut.
(2) They own or have common
ownership of 10 through 50 percent of
the voting securities or instruments of
ownership, or other forms of ownership,
of another person, and BOEM
determines that there is control upon
consideration of the following factors:
(i) The extent to which there are
common officers or directors.
(ii) With respect to the voting
securities, or instruments of ownership
or other forms of ownership: The
percentage of ownership or common
ownership, the relative percentage of
ownership or common ownership
compared to the percentage(s) of
ownership by other persons, if a person
is the greatest single owner, or if there
is an opposing voting bloc of greater
ownership.
(iii) Shared operation of a lease, grant,
or facility as defined in BOEM’s
regulations at 30 CFR 585.112.
(iv) The extent of other owners’
participation in operations and day-today management of a lease, grant, or
facility as defined in BOEM’s
regulations at 30 CFR 585.112.
(v) Other evidence of power to
exercise control over or common control
with another person.
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(3) Regardless of any percentage of
ownership or common ownership, they
are relatives, either by blood or
marriage.
(4) They are both direct, or indirect,
subsidiaries of the same parent
company.
Affiliated eligible bidders are not
permitted to compete against each other
in the auction. Where multiple affiliated
bidders have qualified to bid in the
auction, bidders must decide prior to
the auction which one eligible affiliated
bidder (if any) will participate in the
auction. If two or more affiliated bidders
attempt to participate in the auction,
BOEM will disqualify such bidders from
the auction.
III. Deadlines and Milestones for
Bidders
This section describes the major
deadlines and milestones in the auction
process from publication of this FSN to
execution of the lease pursuant to this
sale.
a. FSN Waiting Period: During the
period between FSN publication and the
lease auction (i.e., minimum 30 days),
qualified bidders must take several steps
to remain eligible to participate in the
auction.
i. Bidder’s Financial Form: Each
bidder must submit a BFF to BOEM to
participate in the auction. The BFF must
contain each bidder’s conceptual
strategy for each non-monetary credit
(also referred to herein as ‘‘bidding
credit’’) for which the bidder wishes to
be considered. BOEM will consider any
BFF received on or before November 4,
2022, and it is each bidder’s
responsibility to ensure BOEM’s timely
receipt. If a bidder does not submit a
BFF by this deadline, BOEM, in its sole
discretion, may grant an extension to
that bidder only if BOEM determines
the bidder’s failure to timely submit a
BFF was caused by events beyond the
bidder’s control. The BFF can be
downloaded at: https://www.boem.gov/
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renewable-energy/state-activities/
california.
For purposes of this auction, BOEM
will not consider BFFs submitted by
bidders for previous lease sales. The
BFF must be executed by an authorized
representative listed on the bidder’s
legal qualifications in the BFF, in
accordance with 18 U.S.C. 1011 (Fraud
and False Statements). Further
information about the BFF can be found
in the ‘‘Bidder’s Financial Form’’
section IX of this notice.
ii. Bid Deposit: Once BOEM has
processed a BFF and provided the
appropriate information to Office of
Natural Resources Revenue (ONRR),
ONRR will populate the Bid Deposit
Forms and then will notify the bidders
that they should have access to pay.gov
for the bid deposits. The bidder must
log into pay.gov to submit a bid deposit.
To participate in the mock auction and
the monetary auction, each qualified
bidder must provide a bid deposit of
$5,000,000 no later than November 21,
2022. BOEM will consider extensions to
this deadline only if BOEM, in its sole
discretion, determines that the failure to
timely submit the bid deposit was
caused by events beyond the bidder’s
control. Further information about bid
deposits can be found in the ‘‘Bid
Deposit’’ section XI of this notice. Per 30
CFR 585.222(e), BOEM will send a
written notice of its decision to accept
or reject bids to all bidders whose
deposits we hold.
b. Conducting the Auction:
i. Affirmative Action: Prior to bidding
in the monetary auction, each bidder
must file the Equal Opportunity
Affirmative Action Representation Form
BOEM–2032 (February 2020, available
on BOEM’s website at https://
www.boem.gov/BOEM-2032/) and Equal
Opportunity Compliance Report
Certification Form BOEM–2033
(February 2020, available on BOEM’s
website at https://www.boem.gov/BOEM2033/) with the BOEM Pacific Regional
Office. This certification is required by
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41 CFR part 60 and Executive Order
(E.O.) 11246, issued September 24,
1965, as amended by E.O. 11375, issued
October 13, 1967, and by E.O. 13672,
issued July 21, 2014. Both forms must
be on file for the bidder(s) in the BOEM
Pacific Regional Office prior to the
execution of any lease contract.
ii. Mock Auction: BOEM will hold a
Mock Auction on December 5, 2022,
beginning at 7:00 a.m. PST/10:00 a.m.
EST. BOEM will hold the Mock Auction
online. BOEM will contact each bidder
that has timely submitted 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.
iii. Multiple-factor Auction: On
December 6, 2022, BOEM, through its
contractor, will commence the monetary
auction. The first round of the auction
will start at 7:00 a.m. PST/10:00 a.m.
EST. The auction will proceed
electronically according to a schedule to
be distributed by the BOEM Auction
Manager at the beginning of the auction,
subject to any revisions that will be
communicated to bidders during the
auction. BOEM anticipates that the
auction may extend over two or more
consecutive business days, as necessary,
until the auction ends in accordance
with the procedures described in the
‘‘Auction Procedures’’ section of this
notice.
iv. Announce Provisional Winners:
BOEM will announce the provisional
winners of the lease sale after the
auction ends.
c. From the Auction to Lease
Execution:
i. Notice and Refunds to NonWinners: 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 copies of the lease to each
provisional 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 non-monetary bidding credit
and bid deposit), and sign and return
the three executed lease copies. In the
event of a delay, BOEM may extend the
10-business-day-time period for
executing and returning the lease if
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BOEM, in its sole discretion, determines
the delay to be caused by events beyond
the 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
obligations have been met, BOEM will
make a final determination regarding its
issuance of the leases and will execute
the leases, if appropriate.
IV. Areas Offered for Leasing
BOEM considered the following
factors in delineating the Lease Areas
included in this FSN: reasonably
comparable commercial viability and
size; prevailing wind direction and
minimal wake effects; maximized
energy generating potential; mooring
system anchor footprints; distance to
shore, port infrastructure, and electrical
grid interconnections; and fair return to
the Federal Government pursuant to the
OCS Lands Act through competition for
commercially viable lease areas.
All five Lease Areas included in this
FSN are the size and orientation that
BOEM described in the Proposed Sale
Notice. BOEM’s designation of the five
Lease Areas offered in the FSN was
informed by its years-long coordination
with BOEM’s intergovernmental task
force members, consultation and
engagement with Tribes, stakeholder
engagement, consideration of the 84
comments that BOEM received in
response to the PSN, and the U.S. Coast
Guard’s (USCG’s) Draft Pacific Coast
Port Access Route Study (PAC–PARS).
BOEM is offering five Lease Areas
totaling 373,268 acres for sale through
this notice (Figure 1).
The areas available for lease will be
auctioned in a single auction as listed in
the table below.
TABLE 1 TO SECTION IV—PACW–1
FINAL LEASE AREAS
Total
acres
Lease
OCS–P
OCS–P
OCS–P
OCS–P
OCS–P
0561
0562
0563
0564
0565
................................
................................
................................
................................
................................
63,338
69,031
80,062
80,418
80,418
BOEM is aware that NOAA’s Office of
National Marine Sanctuaries has
initiated a designation process for the
proposed Chumash Heritage National
Marine Sanctuary, an area comprising
approximately 7,000 square miles off
the central coast of California adjacent
to the Morro Bay Lease Areas. BOEM
does not have authority under the OCS
Lands Act to issue leases, right-of-way
grants, or right-of-use and easement
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grants within any unit of the National
Marine Sanctuary System. Potential
bidders should note that future
designation of a National Marine
Sanctuary adjacent to a Lease Area may
have implications for development of
OCS leases for commercial wind energy
due to BOEM’s lack of authority in
National Marine Sanctuaries. BOEM is
coordinating closely with the NOAA
Office of National Marine Sanctuaries to
advance both offshore wind energy
projects and conservation and
restoration of ocean and coastal habitats.
BOEM is a cooperating agency on
NOAA’s Environmental Impact
Statement on the Proposed Designation
of the Chumash Heritage National
Marine Sanctuary and is providing
input on the ongoing renewable energy
leasing process, as well as contributing
special expertise in marine energy and
mineral matters. More information on
the proposed designation of Chumash
Heritage National Marine Sanctuary is
available at: https://
sanctuaries.noaa.gov/chumashheritage/.
BOEM is also aware that the USCG
has published a Draft PAC–PARS that
evaluates safe access routes for the
movement of vessel traffic proceeding to
or from ports or places along the
western seaboard of the United States
and aims to determine whether a
Shipping Safety Fairway and/or routing
measures should be established,
adjusted, or modified. The
recommendation found in the Draft
PAC–PARS calls for the establishment
of voluntary fairways to coordinate the
flow of vessel traffic along several USCG
districts from California to Washington.
The Draft PAC–PARS recommends that
offshore fairways traverse near the
Humboldt and Morro Bay lease areas
and states that these recommended
fairway routes would allow for the
continued flow of vessel traffic without
interference from wind energy leasing
activities in California. BOEM is
coordinating closely with the USCG to
address potential maritime impacts from
any future offshore wind development
in the Lease Areas. More information on
the PAC–PARS is available at https://
www.regulations.gov/, under Docket No.
USCG–2021–0345.
Additional information on potential
restrictions due to navigation and safety
concerns can be found below in the
Potential Future Restrictions to Ensure
Navigational Safety section VII(a).
BOEM is aware of two submarine
cable systems that are scheduled for
installation or that are already installed
in cable corridors that overlap the Lease
Areas. A planned submarine
telecommunications cable system,
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known as the Bifrost Cable System, is
expected to be installed in 2023 and
completed in 2024 in a cable corridor
that would overlap with the southern
portion of Lease OCS–P 0565. A
telecommunications cables project,
known as RTI Infrastructure, Inc. Eureka
Subsea Fiber Optic Cables Project, was
installed in August 2022 and overlaps
with Lease OCS–P 0561 and Lease OCS–
P 0562.
a. Map of the Areas 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/renewableenergy/state-activities/california.
V. Environmental Review
On January 11, 2022, BOEM
announced the availability of the Draft
Environmental Assessment (EA) that
assesses potential environmental
impacts from site characterization and
site assessment activities expected to
take place after the issuance of
commercial leases within the identified
Humboldt WEA. On April 6, 2022,
BOEM announced the availability of the
Draft EA that assesses potential
environmental impacts from site
characterization and site assessment
activities expected to take place after the
issuance of commercial leases within
the identified Morro Bay WEA. The EAs
focus on potential environmental
consequences of site characterization
activities (i.e., biological, archaeological,
geological, and geophysical surveys and
core samples) and site assessment
activities (i.e., installation of
meteorological buoys) expected to take
place after issuance of wind energy
leases in the Humboldt and Morro Bay
WEAs. Concurrently with its
preparation of the EAs, BOEM
conducted consultations under the
Endangered Species Act (ESA) and the
Magnuson-Stevens Fishery
Conservation and Management Act
regarding potential impacts to listed
species, designated critical habitat, and
essential fish habitat, and conducted
consistency reviews under the Coastal
Zone Management Act. BOEM prepared
and executed a programmatic agreement
(PA) to guide its consultations under
section 106 of the National Historic
Preservation Act. The PA provides for
consultations to continue through
BOEM’s decision-making process
regarding the issuance of leases, rightof-way grants, and right-of-use and
easement grants on the OCS offshore
California. The PA also includes
BOEM’s phased identification and
evaluation of historic properties. The
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availability of the Final EA and Finding
of No Significant Impact for the
Humboldt WEA was announced on May
5, 2022, and the documents are
available at: https://www.boem.gov/
renewable-energy/state-activities/
humboldt-wind-energy-area. The
availability of the Final EA and Finding
of No Significant Impact for the Morro
Bay WEA was announced on October 5,
2022, and the documents are available
at: https://www.boem.gov/renewableenergy/state-activities/morro-bay-windenergy-area. BOEM determined that the
Proposed Actions would not cause any
significant impacts and that
implementing the Proposed Actions do
not constitute major Federal actions
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 on the Proposed
Sale Notice, BOEM is adding lease
stipulations that: (i) were discussed
conceptually in the PSN, (ii) include
conditions of the California Coastal
Commission’s conditional concurrence
with the consistency determinations for
the Humboldt and Morro Bay WEAs,
and (iii) include conditions from the
Department of Defense (DoD) to protect
national defense capabilities and
military operations. BOEM is also
refining some stipulations identified in
the PSN and proposed leases.
a. Reporting requirements: BOEM is
building upon stipulations in previous
leases requiring a semi-annual progress
report from lessees and regular
engagement with Tribes and parties that
may be affected by lessees’ activities on
the OCS. The lease stipulations include
working with: the California Native
American Heritage Commission to
identify Tribes that have cultural and or
historical ties to the Lease Areas; coastal
communities; commercial and
recreational fishing industries and
stakeholders; educational and research
institutions; environmental and public
interest non-governmental
organizations; federal, state, and local
agencies; Tribes; mariners and the
maritime industry; ocean users;
submarine cable operators; and
underserved communities, as defined in
Section 2 of Executive Order 13985.
Within the progress report, lessees will
be required to identify Tribes and
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parties that may be affected by lessees’
activities on the OCS and with whom
the lessees have engaged; provide
updates on engagement activities;
document potential adverse effects to
the interests of Tribes and parties;
document how, if at all, a project has
been informed or altered to address
those potential effects; include feedback
from engagement regarding transmission
planning prior to proposing any export
cable route; provide information that
can be made available to the public; and
include strategies to reach potentially
affected individuals with Limited
English Proficiency.
The stipulations include requirements
for lessees to engage in ways that
minimize linguistic, technological,
cultural, capacity, or other obstacles.
The stipulations encourage lessees to
work collaboratively with governments,
community leadership and
organizations, and Tribes and to
develop specific frameworks for
capacity building.
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 made by Tribes and parties.
Coordinated engagement among Tribes
and lessees is strongly encouraged and
is in addition to BOEM’s responsibilities
to federally recognized Tribes under
Executive Order 13175.
In addition, the reporting stipulation
requires that the progress report
incorporate separate lease requirements
for the development of communication
plans for Tribal governments (Native
American Tribes Communications
Plan), agencies (Agency
Communications Plan), and fisheries
(Fisheries Communications Plan).
Lastly, the progress report must also
include an update on activities executed
under any survey plan.
b. Expanding Engagement with
Potentially Impacted Communities:
Executive Order 13985, ‘‘Advancing
Racial Equity and Support for
Underserved Communities Through the
Federal Government,’’ directs
advancement of equity for all, including
people of color and others who have
been historically underserved,
marginalized, and adversely affected by
persistent poverty and inequality.
Executive Order 14008, ‘‘Tackling the
Climate Crisis at Home and Abroad,’’
establishes a policy to secure
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environmental justice and spur
economic opportunity for disadvantaged
communities through investing in and
building a clean energy economy and
making environmental justice part of
every agency’s mission.
Consistent with its statutory and
regulatory authorities, BOEM is
including lease stipulations designed to
ensure that offshore wind development
projects are implemented in a manner
that minimizes, mitigates, and/or
redresses the project’s potential adverse
effects, if any, on Tribes and parties.
The Lessee will engage in ways that
minimize linguistic, technological,
cultural, capacity, or other obstacles to
Tribes and parties.
c. Commercial Fisheries: BOEM is
including a stipulation in the lease
entitled, ‘‘Commercial Fisheries,’’ which
would contain components of
stipulations in prior commercial leases
issued by BOEM, including a
requirement for a Fisheries
Communications Plan (FCP). BOEM is
adding elements to this stipulation in
response to its extensive engagement
with Tribal governments, the fishing
industry, and governmental agencies.
Major revisions include: (i) identifying
dock space and transit routes that would
minimize space use conflicts and
potential impacts to protected species;
(ii) minimizing both congestion and the
creation of obstacles that could result in
an increased risk of entanglement; (iii)
to the extent practicable, prioritizing
Federal and state climate change
adaptation strategies for fisheries; and
(iv) requiring that the Lessee contact
potentially affected commercial fishing
communities prior to submitting its COP
to discuss potential conflicts between
seasonal fishing operations and the
Lessee’s survey and development
activities.
d. Protected Species: In May 2022,
BOEM published a Final Humboldt
WEA EA which includes the most
current measures to minimize potential
adverse impacts to protected species,
including Endangered Species Act
(ESA)-listed species of marine mammals
and sea turtles. Similar measures are
included in the final Morro Bay WEA
EA, published in October 2022. BOEM
has included in the leases these
measures from the EAs and from the
ESA Concurrence Letter and EFH
Response issued on September 21, 2022
(https://www.boem.gov/sites/default/
files/documents/renewable-energy/stateactivities/LOC-EFH%20
for%20OSW%20leases%20in%20
CA.pdf).
e. Project Labor Agreements (PLAs)
and Supply Chain: BOEM is committed
to workforce development and safety
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and the establishment of a durable
domestic supply chain that can sustain
the U.S. offshore wind energy industry.
To advance this vision, BOEM is
including two lease stipulations, one
that encourages construction efficiency
for projects and the other that
contributes towards establishing a
domestic supply chain:
i. The first stipulation requires lessees
to make every reasonable effort to enter
into a PLA covering the construction
stage of any project for the Lease Areas.
The PLA provisions for the construction
of an offshore wind project apply to all
contractors.
ii. The second stipulation requires
lessees to establish a Statement of Goals
in which the Lessee describes its plans
for contributing to the creation of a
robust and resilient U.S.-based floating
offshore wind industry supply chain
that would facilitate this or other
renewable energy projects permitted by
BOEM. The Lessee is required to
provide regular progress updates on the
achievement of those goals to BOEM,
and BOEM will make those updates
publicly available.
f. Research Site Access: This
stipulation makes explicit that BOEM,
its designated representative, or any
entity to which the Lessor provides
access retains the right to access the
Lease Area for purposes of future
research and other activities conducted
under the lease.
g. Archaeological Survey
Requirements: BOEM is including a
modification of lease stipulations in
previous commercial leases regarding
archaeological survey requirements. The
revised stipulation requires that the
Lessee provide to BOEM, in the
associated plan submissions, a
description of the methods it uses to
conduct archaeological surveys in
support of plans (i.e., SAP and/or COP),
in addition to the survey results. The
Lessee is required to coordinate a Tribal
pre-survey meeting with Tribes that
have cultural and/or historical ties to
the Lease Area; the Lessee must work
with BOEM and the California Native
American Heritage Commission to
identify such Tribes). In the post-review
discovery clauses, the revised
stipulation requires that, in the event of
unanticipated discovery of a potential
archaeological resource, the Lessee will
immediately halt bottom-disturbing
activities within the area of discovery by
a minimum of 50 meters (164 feet), and
the avoidance distance must be
calculated from the maximum
discernible extent of the archaeological
resource. The revised stipulation also
adds a requirement in the post-review
discovery clauses that the Lessee refers
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to the NATCP for additional guidance
on notifications.
h. Foreign Interest: To protect national
defense capabilities and military
operations, BOEM is requiring the
Lessee to provide to DoD specific
information, including names of entities
or persons having a direct ownership
interest in an offshore wind facility, and
changes in ownership interests; the
names of the material vendors, entities,
and persons with which the Lessee will
potentially execute contracts to perform
construction, supply turbines or other
components, or conduct construction
and operational activities at the facility;
and the names of any foreign entities
and persons (as those terms are defined
at 31 CFR 800.220 and 31 CFR 800.224)
allowed to access the wind turbine
structures and associated data systems.
In addition, security concerns raised by
DoD must be resolved prior to allowing
access to the site by foreign persons or
representatives of foreign entities for
which DoD has raised concerns or the
use of wind turbines or other permanent
on-site equipment manufactured by
such an entity.
i. Notice of Assignment to the
Committee on Foreign Investment in the
United States (CFIUS): Under BOEM’s
regulations, a lessee must be one of the
following: (1) a citizen or national of the
United States; (2) an alien lawfully
admitted for permanent residence in the
United States as defined in 8 U.S.C.
1101(a)(20); (3) a private, public, or
municipal corporation organized under
the laws of any State of the United
States, the District of Columbia, or any
territory or insular possession subject to
U.S. jurisdiction; (4) an association of
such citizens, nationals, resident aliens,
or corporations; (5) an Executive Agency
of the United States as defined in
section 105 of Title 5 of the U.S. Code;
(6) a State of the United States; or (7) a
political subdivision of States of the
United States. However, this condition
addresses a situation where a proposed
Lessee, even if in compliance with
BOEM’s regulations, is a foreigncontrolled business entity under the
regulations at 31 CFR part 800. In this
situation, BOEM and the proposed
Lessee must jointly provide notice of the
proposed transaction to CFIUS in
accordance with applicable regulations
(subpart D of 31 CFR part 800) and
provide a copy of the notice to the DoD.
Approval of any assignment of lease
interest that is subject to this stipulation
would only take place after CFIUS
provides notice that it has concluded all
action under section 721 of the Defense
Production Act of 1950, as amended,
with respect to the assignment.
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j. California Coastal Commission
Consistency Determination Conditions:
The following conditions were the
result of the California Coastal
Commission consistency determination
for the Morro Bay and Humboldt WEAs
[CD–0004–22 and CD–0001–22]. Upon
consideration of the record, BOEM has
determined that these stipulations are
appropriate and reasonable as a means
of balancing the factors set forth in
OCSLA Section 8(p) or to further
expeditious development of the lease.
i. Vessel Speed Requirements: Vessels
conducting lease characterization
studies, surveys, metocean buoy
installation, maintenance, or
decommissioning, or any other survey
activities must travel at speeds of no
more than 10 knots during all related
activities, including vessel transit.
ii. Marine Mammal Monitoring
Measures: Lessees must implement all
marine wildlife and protection and
monitoring measures during all marine
operations (e.g., surveys, buoy
installation and removal), consistent
with vessel and worker safety. In
addition, prior to the start of offshore
activities, the Lessee must provide
awareness training to all Project-related
personnel and vessel crew, including
viewing of an applicable wildlife and
fisheries training video, on the most
common types of marine wildlife likely
to be encountered in the project area
and the types of activities that have the
most potential for affecting the animals.
iii. Site-specific Spill Prevention and
Response Plan: The Lessee must submit
a site-specific Spill Prevention and
Response Plan a minimum of 30 days
before commencement of any in-water
survey activities or as part of any survey
plan or SAP. The Plan must be kept on
the appropriate survey vessels during all
survey and SAP operations. The Plan
must identify the worst-case spill
scenario and demonstrate that adequate
spill response equipment will be
available. The Plan must also include
preventative measures the Lessee will
implement to avoid spills; clearly
identify responsibilities of onshore and
offshore contractors and the Lessee’s
personnel; and must list and identify
the location of oil spill response
equipment (including booms),
appropriate protocols, and response
times for deployment. Petroleum-fueled
equipment on the main deck of all
vessels must have drip pans or other
means of collecting dripped petroleum,
which must be collected and treated
with onboard equipment.
iv. Critical Operations and
Curtailment Plan (COCP): The Lessee
must include a COCP as part of any
survey plan. The COCP must define the
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limiting conditions of sea state, wind, or
any other weather conditions that
exceed the safe operation of offshore
vessels, equipment, or divers in the
water; that hinder potential spill
cleanup; or that in any way pose a threat
to personnel or the safety of the
environment. The COCP must provide
for a minimum ongoing five-day
advance weather forecast during
offshore operations. The Plan must also
identify the onsite person with authority
to determine critical conditions and
suspend work operations when needed.
The COCP must be kept on the
appropriate survey vessels during all
survey and SAP operations.
v. Anchoring Plan: The Lessee must
submit an Anchoring Plan to BOEM as
part of any survey plan that requires
vessel anchoring. The Plan must
describe how the Lessee will avoid
placing anchors on sensitive ocean floor
habitats, cables, and pipelines and must
include supporting information.
vi. Bottom Contact: The Lessee must
avoid intentional contact with hard
substrate, rock outcroppings,
seamounts, or deep-sea coral/sponge
habitat, and include a buffer of at least
40 feet (12 meters) from hard bottom
substrates that fully protects these
habitats from bottom contact, including,
but not limited to, anchoring, mooring,
and sediment sampling.
vii. Use Low-Energy Equipment: The
Lessee must use low-energy equipment,
as defined by California State
Regulation 2 CCR § 2100.03(g), to
complete its geophysical surveys. Lowenergy equipment is limited to subbottom profilers (e.g., mini-sparkers).
The Lessee is encouraged to use
geophysical survey operators that
conduct their surveys consistent with
the provisions of the California State
Lands Commission’s low-energy
geophysical survey program.
viii. Coordination with the California
Coastal Commission: The Lessee must
coordinate with the California Coastal
Commission to ensure the Lessee’s
survey and SAP submissions are
coordinated and consistent, minimize
impacts to coastal resources, and
provide the data and information
necessary for analysis of future
consistency certifications.
ix. Fisheries Liaison: The Lessee is
required to use an independent
Fisheries Liaison that is responsible for
the coordination and communication of
site activities with affected commercial,
recreational, and subsistence fishing
communities and harbor districts,
including such coordination and
communication concerning
development and implementation of
survey plans and SAPs.
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VII. Potential Future Restrictions
a. Potential Future Restrictions to
Ensure Navigational Safety:
i. USCG Navigational Safety
Measures: Potential bidders should note
that the USCG has conducted the Pacific
Coast Port Access Route Study (PAC–
PARS) (draft report dated September
2022) to evaluate safe access routes for
the movement of vessel traffic
proceeding to or from ports or places
along the western seaboard of the
United States and to determine whether
a Shipping Safety Fairway and/or
routing measures should be established,
adjusted, or modified. The draft PAC–
PARS evaluated the continued
applicability of, and the need for
modifications to, current vessel routing
measures. The draft PAC–PARS
recommends a voluntary fairway system
with a 15-nautical-mile (NM)-wide
major thoroughfare that generally
follows the existing offshore route used
by commercial container and bulk
carrying vessels. The main trunk of the
fairway runs north-south, down to the
Santa Barbara TSS north of the Channel
Islands. This fairway provides a
voluntary, recommended route for
coastwise vessel traffic. Port approaches
connect vessel traffic entering and
departing major California ports to the
offshore fairway. These fairways are
generally 5 NMs wide, except for a
larger opening at the San Francisco east/
west Transit Separation Scheme. While
data gathered during the finalization of
the PAC–PARS may result in the
establishment of one or more new vessel
routing measures, modification of
existing recommended routing
measures, or disestablishment of
existing recommended routing measures
off the Pacific Coast between
Washington and California, the draft
PAC–PARS recommends offshore
fairways that traverse near the
Humboldt and Morro Bay Lease Areas,
which are found in locations that allow
for the continued flow of vessel traffic
along recommended fairway routes
without interference from wind energy
leasing activities. The PAC–PARS study
did not consider issues that may arise
relating to vessel anchorage needs,
particularly during emergency
situations. Potential bidders should note
that the USCG is undertaking a national
review of anchorage regulatory
standards. This may result in new
recommendations from the USCG
relating to allowances for vessel anchors
in certain portions of the Lease Areas.
BOEM may require mitigation measures
in a COP once the Lessee’s site-specific
navigational safety risk assessment is
available to inform BOEM’s decision-
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making. The final PAC–PARS and the
review of vessel anchorage regulatory
standards may result in additional
navigational mitigation measures at the
COP review stage.
ii. Measures for Vessel Transit: The
information currently available does not
indicate that vessel routing mitigation
measures are warranted in the Lease
Areas at lease execution and the Draft
PAC–PARS study recommends fairways
that avoid the Lease Areas entirely.
However, at the COP stage BOEM may
nonetheless consider designating
portions of the Lease Areas as areas of
no surface occupancy to facilitate vessel
transit and continuance of existing uses.
b. Potential Future Restrictions to
Mitigate Potential Conflicts with
Department of Defense Activities: In
2018, DoD reviewed the Humboldt and
Morro Bay Call Areas (83 FR 53096) in
support of BOEM’s efforts to deconflict
potential wind energy development in
the areas in northern and central
California, respectively. DoD provided
its assessment of the California Offshore
Planning Areas, and the 2018 DoD
assessment indicated that its mission
activities along most of the central coast,
including the Morro Bay Call Area, are
incompatible with wind energy
development. DoD determined that the
Humboldt Call Area, located off the
coast of northern California, was DoDmission compatible, with site-specific
stipulations.
On May 25, 2021, the Departments of
the Interior and Defense and the State of
California announced an agreement to
accelerate wind energy offshore the
central and northern coasts of
California. The Department of the
Interior, in cooperation with DoD and
the State of California, identified the
Morro Bay 399 Area that could support
approximately three gigawatts of
offshore wind on roughly 399 square
miles off California’s central coast,
northwest of Morro Bay. The
announcement also acknowledged the
critical nature of current and future
military testing, training, and operations
in the central coast and noted the
parties’ commitment to ensuring longterm protection of military testing,
training, and operations in the area
while pursuing new domestic clean
energy resources. This announcement
came after years of collaboration
between the Departments of the Interior
and Defense to find areas offshore the
central coast of California that are
compatible with DoD’s training and
testing operations. The Lease Areas
offshore Morro Bay are all located
within the Morro Bay 399 Area and
have been determined by DoD to be
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suitable for development, with sitespecific stipulations.
Prospective bidders should be aware
that site specific terms and conditions of
any COP approval, such as curtailment
protocol, will be required by DoD. Any
such terms and conditions will result
from consultation with DoD on
development within the Lease Areas.
For example, DoD will likely require a
curtailment protocol with the Lessee to
avoid conflicts with electromagnetically
sensitive activities conducted in the
area, including those associated with
the Point Mugu Sea Range, Vandenberg
Space Force Base, and North American
Aerospace Defense Command (NORAD).
DoD has indicated to BOEM that
curtailment will be temporary and
limited to instances where it is
necessary to avoid conflicts with
national security or defense
requirements.
BOEM will coordinate with DoD and
the Lessee to deconflict these potential
impacts throughout the project review
stage. Mitigation measures or terms and
conditions of a plan approval may result
from this coordination effort.
Potential bidders should be aware that
there may be national security
considerations associated with any
request by DoD for curtailment and any
curtailment resulting therefrom. Future
Lessees will not be allowed to disclose
any such request or any curtailment
resulting therefrom without the prior
consent of DoD. DoD has stated that
consent to disclose to a business entity
with a need to know and with which a
non-disclosure agreement is in place
will not be unreasonably withheld.
The DoD is exploring potential
national security threats from
deployment of Distributed Optical Fiber
Sensing (DOFS) technology associated
with offshore energy projects. BOEM
retains the right to unilaterally require
a Lessee to implement mitigation
measures necessary to safeguard against
these potential threats to national
security and military operations, as
identified by the DoD.
VIII. Lease Terms and Conditions
BOEM has included terms and
conditions 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 and
COP. The leases are available on
BOEM’s website at: https://
www.boem.gov/renewable-energy/stateactivities/california. Each lease would
include the following attachments:
1. Addendum A (‘‘Description of
Leased Area and Lease Activities’’);
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2. Addendum B (‘‘Lease Term and
Financial Schedule’’);
3. Addendum C (‘‘Lease-Specific
Terms, Conditions, and Stipulations’’);
4. Addendum D (‘‘Project Easement’’);
and
5. Addendum E (‘‘Rent Schedule’’).
Addenda A, B, and C provide detailed
descriptions of lease terms and
conditions. Addenda D and E will be
completed at the time of COP approval
or approval with modifications, should
a COP be approved.
a. Required Plans for Potential
Development of Executed Leases: Under
30 CFR 585.601, if site assessment
activities will be conducted, the Lessee
will be required to submit a SAP within
12 months of lease issuance. Approval
of the SAP will initiate the Lessee’s fiveyear site assessment term. If the Lessee
intends to continue its commercial lease
with an operations term, the Lessee will
be required to submit a COP at least six
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 are more 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 would be
due within 45 calendar days after the
Lessee receives the lease copies from
BOEM for execution. For example, for a
69,031-acre lease (the size of OCS–P
0562), the rent payment will be
$207,093 per year until commercial
operations begin. Thereafter, until
commercial operations begin, annual
rent payments would be due on the
anniversary of the effective date of the
lease (the ‘‘Lease Anniversary’’). Once
commercial operations under the lease
begin, BOEM will charge rent only for
the portions of the Lease Area remaining
undeveloped (i.e., non-generating
acreage).
If the Lessee submits an application
for relinquishment of a portion of its
leased area within the first 45 calendar
days after receiving the lease copies
from BOEM and BOEM approves that
application, no rent payment 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. A lease
issued under this part confers on the
Lessee the right to one or more project
easements, without further competition,
for the purpose of installing gathering,
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transmission, and distribution cables,
pipelines, and appurtenances on the
OCS as necessary for the full enjoyment
of the lease. A Lessee must apply for the
project easement as part of the COP or
SAP, as provided under subpart F of 30
CFR part 585.
The Lessee 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, with the first rent
payment due when the operations term
begins, as outlined in 30 CFR
585.500(a)(5) and 585.507(b). Annual
rent for a project easement is $5 per
acre, subject to a minimum of $450 per
year.
b. Operating Fee: For purposes of
calculating the initial annual operating
fee payment under 30 CFR 585.506,
BOEM applies an operating fee rate to
a proxy for the wholesale market value
of the electricity expected to be
generated from the project during its
first 12 months of operations. This
initial payment would be prorated to
reflect the period between the
commencement of commercial
operations and the Lease Anniversary.
The initial annual operating fee
payment would be due within 45 days
after commencement of commercial
operations. Thereafter, subsequent
annual operating fee payments would be
due on or before the Lease Anniversary.
The subsequent annual operating fee
payments are calculated by multiplying
64101
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
976-megawatt (MW) wind facility
operating at a 40 percent capacity (i.e.,
capacity factor of 0.4) with a regional
wholesale power price of $40 per
megawatt hour (MWh) and an operating
fee rate of 0.02 will be calculated as
follows:
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
ONRR as an annual operating fee. For
the Lease Areas, BOEM will set the fee
rate at 0.02 (i.e., 2 percent) for the entire
life of commercial operations.
ii. Nameplate Capacity: Nameplate
capacity is the maximum rated electric
output, expressed in MW, that the
turbines of the wind facility under
commercial operations can produce at
their rated wind speed, as designated by
the turbine’s manufacturer. The
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
would be 1,200 MW.
iii. Capacity Factor: The capacity
factor relates to the amount of energy
delivered to the grid during a period of
time compared to the amount of energy
the wind facility would have produced
at full capacity during that same period
of time. This factor is represented as a
decimal between zero (0) and one (1).
There are several reasons why the
amount of power delivered is less than
the theoretical 100 percent of capacity.
For a wind facility, the capacity factor
is mostly determined by the availability
of wind. Transmission line loss and
downtime for maintenance or other
purposes also affect the capacity factor.
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BOEM will set the capacity factor at
0.4 (i.e., 40 percent) for the year in
which the commercial operation date
occurs and for the first six full years of
commercial operations on the lease. At
the end of the sixth year, BOEM may
adjust the capacity factor to reflect the
performance over the previous five
years based upon the actual metered
electricity generation at the delivery
point to the electrical grid. BOEM may
make similar adjustments to the
capacity factor once every five years
thereafter.
iv. Wholesale Power Price Index:
Under 30 CFR 585.506(c)(2)(i), the
wholesale power price, expressed in
dollars per MWh, is determined at the
time each annual operating fee payment
is due. For the leases offered in this sale,
BOEM will use the annual average of
the California Independent System
Operator (California ISO) North of Path
15 (NP15) market hub price. The Lessee
may also use aggregated data from
commercial subscription services, such
as S&P Global Market Intelligence
Platform or Hitachi ABB Velocity Suite
and this may be posted by BOEM for
reference.
c. Financial Assurance: Within 10
business days after receiving the lease
copies for execution and pursuant to 30
CFR 585.515–585.516, each provisional
winner must provide an initial leasespecific bond or other BOEM-approved
financial assurance instrument in the
amount of $100,000. The provisional
winners may meet financial assurance
requirements by posting a surety bond
or financial assurance instrument or
alternative detailed in 30 CFR 585.526–
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585.529. BOEM encourages the
provisionally winning bidders to
discuss the financial assurance
instrument requirements 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.
d. Payments: The annual lease
payments and financial assurance
requirements described above can be
found in Addendum ‘‘B’’ of the leases,
which BOEM has made available with
this notice on its website at: https:
https://www.boem.gov/renewableenergy/state-activities/california.
X. Bidder’s Financial Form
Each bidder must fill out the BFF
referenced in this FSN. A copy of the
form is available at: https://
www.boem.gov/renewable-energy/stateactivities/california. Bidders seeking to
use the bidding credits must mark the
appropriate box(es) on their BFF and
submit a conceptual strategy(ies) with
their BFF as described in the BFF
Addendum. Bidders are encouraged to
carefully read the BFF and BFF
Addendum. Bidders who do not elect to
attempt to qualify for a bidding credit
should mark the box on their BFF next
to the paragraph declining the bidding
credits. If the bidder does not select bid
credits on the BFF or does not submit
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Annual Operating Fee= 976 MW x 8,760--x 0.4 x MWhPowerPrice x 0.02 = $2,736,820.22
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conceptual strategy(ies), then BOEM
will assume that the bidder has no
interest in a bidding credit. BOEM must
receive each BFF and conceptual
strategy(ies), as appropriate, no later
than November 4, 2022. If a bidder does
not submit a BFF for this sale by the
deadline, BOEM, in its sole discretion,
may grant an extension to that bidder
only if BOEM determines the bidder’s
failure to timely submit a BFF was
caused by events beyond the bidder’s
control.
BFFs submitted by bidders for
previous lease sales will not satisfy the
requirements of this auction. For the
PACW–1, BOEM will accept bidder’s
BFFs and conceptual strategies
electronically or by mail. Instructions
for submission can be found in 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. Winning bidders committing
to the bidding credit(s) must meet the
bidding credit requirements no later
than submission of their first Facility
Design Report (FDR).
XI. Bid Deposit
A bid deposit is an advance cash
payment submitted to BOEM to
participate in the auction. ONRR will
notify the bidders that they have access
to the Bid Deposit Form in pay.gov, and
bidders must use the Bid Deposit Form
on the pay.gov website to leave a
deposit. Bidders may need to create an
account in pay.gov to access the Bid
Deposit Form and leave a deposit. Each
bidder must submit a bid deposit of
$5,000,000 no later than November 21,
2022, to be eligible to bid for one lease
area. Any bidder who fails to submit the
bid deposit by this deadline may be
disqualified from participating in the
auction. BOEM will consider extensions
to this deadline only if BOEM, in its
sole discretion, determines that the
failure to timely submit the bid deposit
was caused by events beyond the
bidder’s control.
Following the auction, bid deposits
will be applied against bonus bids. Once
BOEM has announced the provisional
winners, BOEM will refund bid deposits
to the other bidders.
If BOEM offers a lease to a
provisionally winning bidder and that
bidder fails to timely return the signed
lease form, establish financial
assurance, or pay the balance of its bid,
BOEM may retain the bidder’s
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$5,000,000 bid deposit. In such a
circumstance, BOEM may determine
which bid would have won in the
absence of the bid previously
determined to be the winning bid and
may offer a lease pursuant to this next
highest bid if the Lessee that provided
it has not won one of the other Lease
Areas.
XII. Minimum Bid
The minimum bid is the lowest bid
BOEM will accept as a winning bid, and
it is where BOEM will start the bidding
in the auction. BOEM has established a
minimum bid of $100.00 per acre for
this lease sale. See table in section XIII.e
below for total minimum bids for each
lease to be offered in these sales.
XIII. Auction Procedures
Multiple-Factor Bidding Auction: As
authorized under 30 CFR 585.220(a)(4)
and 585.221(a)(6), BOEM will use a
multiple-factor bidding auction for this
lease sale. The bidding system for this
lease sale will be a multiple-factor
combination of a monetary bid and a
non-monetary factor. BOEM will grant
bidding credits to potential bidders for
commitments to:
(1) support workforce training
programs for the floating offshore wind
industry and/or develop a U.S. domestic
supply chain for the floating offshore
wind industry;
(2) establish a Lease Area Use CBA
with one or more communities,
stakeholder groups, or Tribal entities
whose use of the geographic space of the
Lease Area, or whose use of resources
harvested from that geographic space, is
expected to be impacted by the Lessee’s
potential offshore wind development,
and
(3) establish a General CBA with one
or more communities, Tribes, or
stakeholder groups that are expected to
be affected by the potential impacts on
the marine, coastal, and/or human
environment (such as impacts on visual
or cultural resources) from activities
resulting from lease development that
are not otherwise addressed by the
Lease Area Use CBA.
This auction format was selected to:
(1) enhance, through training, the
floating offshore wind workforce and
enhance the establishment of a domestic
supply chain for floating offshore wind
manufacturing, assembly, or services,
and that is designed to lead to
expeditious and orderly development of
offshore wind resources on the OCS;
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(2) support the expeditious and
orderly development of OCS resources
by mitigating potential direct impacts
from proposed projects and encouraging
the investment in infrastructure
germane to the offshore wind industry;
and
(3) advance the purposes of OCSLA
by facilitating the coexistence of
multiple ocean uses on the OCS,
promoting meaningful comment and
participation in the leasing and plan
review process, and mitigating potential
economic impacts on communities
impacted by potential offshore wind
development.
BOEM will appoint a panel to review
the non-monetary component after the
BFFs and bid deposits have been
received but before the auction, and the
panel will verify the results of the lease
sale. Following review of the strategy to
support workforce training programs for
the floating offshore wind industry;
development of a U.S. domestic supply
chain for the floating offshore wind
energy industry; either CBA; or a
combination thereof, BOEM will notify
bidders if they qualify for the credit
prior to the mock auction. BOEM
reserves the right to change the
composition of this panel at any time.
The bid made by a particular bidder in
each round will represent the sum of a
monetary (cash) amount and a nonmonetary factor (bidding credit). The
structure of this bidding credit is
explained in the subsection below.
A bidder will be eligible to elect to
qualify for one or more of the bidding
credits. A bidder may target either
workforce training, supply chain
development, or a combination thereof
for a 20 percent credit. The Lease Area
Use CBA bidding credit will be worth 5
percent of the cash bid. The General
CBA bidding credit will be worth 5
percent of the cash bid. If a bidder
qualifies for all three bidding credits,
the credits will be additive, for a total
potential credit of a maximum 30
percent of the cash bid. Bidders are
encouraged to review the BFF
Addendum if they are interested in
qualifying for these bidding credits.
a. Bidding credit calculation: BOEM
provides the following example. For a
cumulative 30 percent of cash bid
bidding credit with a $50 million
Asking Price, the bidding credit will be
calculated (subject to rounding) as
follows:
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.
{Asking Price} {$50 million}
Cash Bid= 1 + Credit% = 1 + 30 % = $38,461,538
Credit= $50 million - $38,461,538 = $11,538,462
Only the 20 percent workforce
training and/or supply chain
development credit will require an
explicit financial commitment. Bidders
seeking a CBA credit will retain the
flexibility to determine the optimal
benefits (both monetary and nonmonetary) on which the parties can
agree. Thus, per the example above, the
required financial commitment for the
workforce training and/or supply chain
development credit is calculated as 20
percent of the cash bid. It will be
calculated as follows:
Commitment = Cash Bid * Workforce
Training Supply Chain Credit% =
$38,461,538 * 20% = $7,692,308
Though no specific financial
commitment is required, the value of
the credit for the two CBAs are similarly
calculated, but for 5 percent of the cash
bid.
BOEM has prepared a table
demonstrating the credit value
calculations if a $50 million Asking
Cash bid
Percent
credit
Price is paid for in part with various
bidding credits. Any financial
commitment is calculated solely from
the value of the 20 percent workforce
training and/or supply chain
development bidding credit, with no
financial commitment required for a
CBA credit. The same calculations of
cash bids and credits are applicable to
exit bids, as well as to live bids. Note
that, in the monetary auction, all
fractional dollar amounts will be subject
to rounding to the nearest dollar.
Workforce
training/
supply chain
credit
(20%)
Credit value
Lease area
use CBA
credit
(5%)
General CBA
credit
(5%)
Bidding credits qualified for
Asking price
Workforce Training/Supply Chain Development; and Lease Area Use
CBA and General CBA.
Workforce Training/Supply Chain Development; and Lease Area Use
CBA.
Workforce Training/Supply Chain Development; and General CBA.
Workforce Training/Supply Chain Development only.
Both CBA Credits only ..........................
Lease Area Use CBA Credit only .........
General CBA Credit only .......................
$50 million .............
$38,461,538
30
$11,538,462
$7,692,308
$1,923,077
$1,923,077
$50 million .............
40,000,000
25
10,000,000
8,000,000
2,000,000
N/A
$50 million .............
40,000,000
25
10,000,000
8,000,000
N/A
2,000,000
$50 million .............
41,666,667
20
8,333,333
8,333,333
N/A
N/A
$50 million .............
$50 million .............
$50 million .............
45,454,545
47,619,048
47,619,048
10
5
5
4,545,455
2,380,952
2,380,952
N/A
N/A
N/A
2,272,727
2,380,952
........................
2,272,727
N/A
2,380,952
b. 20 Percent Non-Monetary (Bidding)
Credit for Workforce Training or Supply
Chain Development or a Combination of
Both: This type of bidding credit allows
a bidder to receive a credit of 20 percent
of its cash bid in exchange for
committing to make a qualifying
monetary contribution (‘‘Contribution’’)
to programs or initiatives, as described
in the BFF Addendum and lease. The
workforce training programs must
support the floating offshore wind
industry, development of a U.S.
domestic supply chain for the floating
offshore wind energy industry, or both.
To qualify for this credit, the winning
bidder is required to financially
contribute the value of this bidding
credit toward a workforce training
program or the development of a
domestic supply chain, as described in
the BFF Addendum and lease.
i. The Contribution to workforce
training must result in a better trained
and/or larger domestic floating offshore
wind workforce that would provide for
more efficient operations via increasing
the supply of fully trained personnel.
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ii. The Contribution to domestic
supply chain development must result
in (i) overall benefits to the U.S. floating
offshore wind supply chain available to
all potential purchasers of offshore wind
services, components, or subassemblies,
not solely the Lessee’s project; (ii) either
the demonstrable development of new
domestic capacity (including vessels) or
the demonstrable buildout of existing
capacity; or (iii) a more robust floating
offshore wind domestic supply chain by
reducing the upfront capital or
certification cost for manufacturing
offshore wind components, including
the building of facilities, the purchasing
of capital equipment, and the certifying
of existing manufacturing or assembly
facilities.
iii. No portion of the Contribution
may also be used to meet the
requirements of any other bidding
credits for which the Lessee qualifies.
iv. Bidders seeking to use the bidding
credit under this provision can choose
to commit to workforce training
programs, domestic supply chain
initiatives, or a combination of both.
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The strategy must describe the verifiable
actions to be taken by the Lessee that
would allow BOEM to confirm
compliance when the documentation for
satisfying the bidding credit is
submitted. The Contribution must be
made no later than the time of the
submission of the Lessee’s first FDR.
Lessees must provide documentation
showing that the Lessee has made the
Contribution and complied with the
applicable requirements no later than
the submission of the first FDR for the
Lease. Deferring the payment until no
later than the FDR will enable the
Lessee to identify programs or recipients
with the greatest potential to expedite or
facilitate orderly OCS renewable energy
development.
v. Contributions to workforce training
must be to one or more of the following:
(i) Contributions toward union
apprenticeships, labor management
training partnerships, stipends for
workforce training, or other technical
training programs or institutions
focused on providing skills necessary
for the planning, design, construction,
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operation, maintenance, or
decommissioning of floating offshore
wind energy projects in the United
States; (ii) Contributions toward
maritime training necessary for the
crewing of vessels to be used for the
construction, servicing, and/or
decommissioning of floating offshore
wind energy projects in the United
States; (iii) Contributions toward
training workers in skills or techniques
necessary to manufacture or assemble
floating offshore wind components,
subcomponents, or subassemblies.
Examples of these skills and techniques
include those in the areas of welding;
floating offshore wind energy
technology; hydraulic maintenance;
braking systems; mechanical systems,
including blade inspection and
maintenance; or computers and
programmable logic control systems; (iv)
Contributions toward Tribal workforce
development programs or training for
employees of wholly owned Tribal
corporations that lead to the expeditious
and orderly development of floating
offshore wind; or (v) Contributions
toward training in any other job skills
that the Lessee can demonstrate are
necessary for the planning, design,
construction, operation, maintenance, or
decommissioning of floating offshore
wind energy projects in the United
States.
vi. Contributions to domestic supply
chain development must be one or more
of the following: (i) Contributions
supporting the development of a
domestic supply chain for the floating
offshore wind industry, including
manufacturing of components and subassemblies and the expansion of related
services; (ii) Contributions to domestic
Tier 2 and Tier 3 floating offshore wind
component suppliers, such as mooring
line manufacturers, and domestic Tier 1
supply chain efforts, including quayside fabrication of floating foundations
and assembly of the floating tower, as
defined in the Lease and BFF
Addendum; (iii) Contributions for
technical assistance grants to help U.S.
manufacturers re-tool or certify (e.g.,
ISO–9001) for floating offshore wind
manufacturing; (iv) Contributions for
the development of Jones Act-compliant
vessels for the construction, servicing,
and/or decommissioning of floating
offshore wind energy projects in the
United States, including semisubmersible barges for use during
quayside manufacturing, assembly, or
installation; (v) Contributions to the
purchase and installation of selfpropelled modular transporter systems
(SPMTs), lift cranes capable of installing
foundations, towers, and nacelles
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quayside, and domestic mooring
manufacturing facilities; (vi)
Contributions to port infrastructure
related to floating offshore wind
component manufacturing and
preparation of quayside manufacturing
and assembly areas for the construction
and deployment of floating foundations
for, or other components of, offshore
wind turbines; (vii) Contributions to
establish a new or existing bonding
support reserve or revolving fund
available to all businesses providing
goods and services to floating offshore
wind energy companies, including
disadvantaged businesses, and/or
wholly owned Tribal corporations; or
(viii) Other Contributions to supply
chain development efforts that the
Lessee can demonstrate further the
manufacture of floating offshore wind
components or subassemblies, or the
provision of floating offshore wind
services, in the United States.
vii. Documentation: If a lease is
awarded pursuant to a winning bid that
includes a bidding credit for workforce
training and/or supply chain
development, the Lessee must provide
documentation to BOEM showing that
the Lessee has met the commitment no
later than the submission of the first
FDR. The documentation must enable
BOEM to objectively verify the amount
of the Contribution and the
beneficiary(ies) of the Contribution.
At a minimum, this documentation
must include: all written agreements
between the Lessee and beneficiary(ies)
of the Contribution, which must detail
the amount of the Contribution and how
they will be used by the beneficiaries of
the Contribution in order to satisfy the
goals of the bidding credit for which the
Contribution was made; all receipts
documenting the amount, date, financial
institution, and the account and owner
of the account to which the
Contribution was made; and sworn
statements by the entity that made the
Contribution and the beneficiary(ies) of
the Contribution, attesting that all
information provided is true and
accurate in the above documentation.
The documentation must describe how
the funded initiative or program has
advanced, or is expected to advance,
U.S. floating offshore wind workforce
training and/or supply chain
development. The documentation must
also provide qualitative and/or
quantitative information that includes
the estimated number of trainees or jobs
supported, and/or the estimated
leveraged supply chain investment
resulting or expected to result from the
Contribution. The documentation must
contain and elaborate on for the
information specified in the conceptual
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strategy submitted with the BFF and
must allow BOEM to objectively verify
(i) the amount of the Contribution and
the beneficiary(ies) of the Contribution;
and (ii) compliance with the bidding
credit criteria provided in Addendum
‘‘C’’ of the Lease. If the Lessee’s
implementation strategy has changed
from that in the conceptual strategy due
to market needs or other factors, the
Lessee must explain the changed
approach. BOEM reserves the right to
determine that the bidding credit has
not been satisfied if changes to the
Lessee’s conceptual strategy do not meet
the criteria for the bidding credit
described in Addendum ‘‘C’’ of the
Lease or the BFF Addendum.
viii. Enforcement: The commitment
for the bidding credit would be made in
the BFF and would be included in a
lease addendum that would bind the
Lessee and all future assignees of the
lease. If BOEM were to determine that
a Lessee or assignee had failed to satisfy
the requirements of the bidding credit,
or if a Lessee were to relinquish or
otherwise fail to develop the lease by
the tenth anniversary date of lease
issuance, the amount corresponding to
the bidding credit awarded would be
immediately due and payable to ONRR
with interest from the date of lease
execution. The interest rate would be
the underpayment interest rate
identified by ONRR. BOEM could, at its
sole discretion, extend the
documentation deadline beyond first
FDR submission or the 10-year
timeframe.
c. 5 Percent Non-Monetary (Bidding)
Credit for a Lease Area Use CBA: The
second bidding credit will allow a
bidder to receive a credit of 5 percent
of its cash bid in exchange for an
existing CBA or a commitment to enter
into a new CBA with one or more
communities, stakeholder groups, or
Tribal entities whose use of the
geographic space of the Lease Area, or
whose use of resources harvested from
that geographic space, is expected to be
impacted by the Lessee’s potential
offshore wind development (hereinafter,
in the context of the Lease Area Use
CBA bidding credit, referred to as
‘‘impacted community’’). The Lease
Area Use CBA may assist fishing and
related industries (including Tribal
fisheries) by supporting their resilience
and ability to adapt to gear changes or
any potential gear loss or damage, as
well as any loss of income, or other
similar potential impacts that may arise
from the development of the Lease Area.
The Lease Area Use CBA may include
payments into a special purpose fund,
such as payments to support gear
changes, navigation technology
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improvements, and other efforts to
improve safety and navigation, or to
compensate the fishing and related
industries whose use of the geographic
space of the Lease Area is impacted by
the Lessee’s potential offshore wind
development. To qualify for the credit,
the bidder will be required to commit to
the requirements in the BFF Addendum
and the lease, and to submit a strategy
as described in the BFF Addendum. A
bidder that is qualified to bid for a Lease
Area and would like to qualify for the
Lease Area Use CBA credit may do so
with an executed CBA, even if future
revisions to the CBA are necessary to
comply with the conceptual strategy
described in the BFF Addendum.
However, in order to satisfy the
requirements for this bidding credit,
such bidders must ensure compliance
with the conceptual strategy by the time
the Lessee’s first FDR is submitted.
i. Bidders seeking the bidding credit
must submit their conceptual strategy
with their BFF, further described below
and in the BFF Addendum. The
conceptual strategy must contain either
a qualifying executed Lease Area Use
CBA or a conceptual strategy describing
how the bidder intends to qualify for the
Lease Area Use CBA bidding credit,
which can be accomplished through the
execution of a new CBA or revising an
already executed CBA. Bidders
qualifying using a conceptual strategy
must: (i) Explain how the Lessee will
select or identify impacted communities
with whom to enter into a Lease Area
Use CBA; (ii) Describe the provisions
that may be included in the Lease Area
Use CBA and how the provisions
mitigate potential impacts from the
proposed development of the Lease
Area; and (iii) Describe the process for
documentation and verification that the
Lease Area Use CBA has been executed
according to the requirements in the
BFF Addendum and the Lease. A Lessee
will be required to provide
documentation showing that the Lessee
has met the commitment and complied
with the applicable requirements no
later than the submission of the Lessee’s
first FDR. Deferring the fulfillment of
the commitment until the first FDR will
enable the Lessee to identify
stakeholders with impacts in need of
mitigation.
ii. A qualifying CBA must meet the
following requirements: (i) Be between
the Lessee or its affiliated entity, or if
appropriate, its assignee(s), and an
impacted community; (ii) Specify how
the impacted community’s use of the
Lease Area or how the impacted
community’s use of resources harvested
from the geographic space of the Lease
Area is expected to be impacted by the
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Lessee’s potential offshore wind
development; (iii) Address impacts to
the impacted community arising from
lease development; (iv) Specify any
monetary, material, or other benefits
provided, or to be provided, by the
Lessee to the impacted community,
including any mitigation or other
compensatory measures provided by the
Lessee to the impacted community,
such as the establishment of any special
purpose funds and the mechanisms
through which monies therein will be
disbursed; (v) Indicate the commitment
of the parties to collaboration and
resolution of issues. This commitment
may be indicated by a statement that the
parties will agree to mediation, a
strategy for collaboration, or other type
of plan describing how the parties will
collaborate or resolve issues as needed;
(vi) Describe communication methods,
engagement methods, or educational
opportunities for the impacted
community; and (vii) Specify plans (or
strategies) to mitigate potential impacts
from the proposed development of the
Lease Area on the impacted community.
iii. No CBA otherwise eligible for a
bidding credit may include exclusivity
or preferential clauses that prevent or
disincentivize an impacted community
from entering into such agreements with
other lessees or potential lessees.
iv. No portion of a CBA, fund, or
agreement used for this credit may be
used to meet the requirements of any
other bidding credit for which the
Lessee qualifies.
v. Lessees may execute a Lease Area
Use CBA with a single entity, which
may be a coalition that represents the
diverse interests and inclusive needs of
more than one impacted community, or
multiple entities, or multiple impacted
communities, and may execute more
than one Lease Area Use CBA.
vi. Any benefits provided to the
impacted community should not
duplicate benefits or mitigation
measures imposed on the Lessee
through, or pursuant to, statutes other
than OCSLA.
vii. A bidder who receives this credit
must use best efforts to provide benefits
at least commensurate to the value of
the bidding credit received. This may
include both monetary and nonmonetary benefits.
viii. Documentation: If a lease is
awarded pursuant to a winning bid that
includes this CBA credit, the Lessee
must provide written documentation to
BOEM demonstrating execution of the
CBA commitment no later than
submission of the Lessee’s first FDR.
The documentation must enable BOEM
to objectively verify the CBA has met all
applicable requirements as outlined in
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64105
the BFF Addendum and Lease. At a
minimum, this documentation must
include: all written agreements between
the Lessee and the impacted
community, including the executed
Lease Area Use CBA; description of
work done with impacted communities,
including the monetary and nonmonetary commitments that reflect the
value of the bidding credit received; and
sworn statements by the Lease Area Use
CBA signatories or their assignees,
attesting to the truth and accuracy of all
the information provided in the above
documentation. The documentation
must contain and elaborate on the
information specified in the conceptual
strategy that was submitted with the
BFF. If the Lessee’s conceptual strategy
has changed due to market needs or
other factors, the Lessee must explain
this change.
ix. Enforcement: The commitment for
the Lease Area Use Bidding Credit will
be made in the BFF and will be
included in a lease addendum that
binds the Lessee and all assignees of the
lease. If BOEM were to determine that
a Lessee or assignee had failed to enter
into a Lease Area Use CBA that satisfies
the commitment by the Lessee’s first
FDR submission, or if a Lessee were to
relinquish or otherwise fail to develop
the lease by the tenth anniversary date
of lease issuance, the amount
corresponding to the bidding credit
awarded will be immediately due and
payable to ONRR with interest from the
date of lease execution. The interest rate
will be the underpayment interest rate
identified by ONRR. BOEM can, at its
sole discretion, extend the
documentation deadline beyond the
first FDR submission or the 10-year
timeframe.
d. 5 Percent Non-Monetary (Bidding)
Credit for a General CBA: The third
bidding credit will allow a bidder to
receive a credit of 5 percent of its cash
bid in exchange for an existing CBA or
a commitment to enter into a new CBA
with one or more communities, Tribes,
or stakeholder groups that are expected
to be affected by the potential impacts
on the marine, coastal, and/or human
environment (such as impacts on visual
or cultural resources) from activities
resulting from lease development that
are not otherwise addressed by the
Lease Area Use CBA (hereinafter, in the
context of the General CBA bidding
credit, referred to as ‘‘impacted
community’’). The General CBA credit
is designed mitigate effects from OCS
energy development and promote that
development by enabling greater
collaboration between lessees and the
impacted communities on which the
development depends. To qualify for
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the credit, the bidder must commit to
the requirements in the BFF Addendum
and the lease, and submit a strategy as
described in the BFF Addendum. A
bidder that is qualified to bid for a Lease
Area and would like to qualify for the
General CBA credit may do so with an
executed CBA, even if future revisions
to the CBA are necessary to comply with
the conceptual strategy described in the
BFF Addendum. However, in order to
satisfy the requirements for this bidding
credit, such bidders must ensure
compliance with the conceptual strategy
by the time the Lessee’s first FDR is
submitted.
i. Bidders seeking the bidding credit
must submit their conceptual strategy
with their BFF, further described below
and in the BFF Addendum. The
conceptual strategy must contain either
a qualifying executed General CBA or a
conceptual strategy describing how the
bidder intends to qualify for the General
CBA bidding credit, which can be
accomplished through the execution of
a new CBA or revising an already
executed CBA. Bidders qualifying using
a conceptual strategy must: (i) Explain
how the Lessee will identify impacted
communities with whom to enter into a
General CBA; (ii) Describe the bidder’s
commitments, including the form of
investments, that will be made, subject
to the requirements and restrictions
described above and in the BFF
Addendum; (iii) Describe the provisions
that will be included in the General
CBA and how the provisions will
address the potential impacts arising
from activities performed in connection
with lease development; and (iv)
Describe the process for documentation
and verification through which the
General CBA has been executed
according to the requirements in the
BFF Addendum. A Lessee will be
required to provide documentation
showing that the Lessee has met the
commitment and complied with the
applicable requirements no later than
the submission of the Lessee’s first FDR.
Deferring the fulfillment of the
commitment until the first FDR will
enable the Lessee to identify impacted
communities likely affected by the
impacts on the marine, coastal, and/or
human environment from activities
resulting from lease development.
ii. A qualifying CBA must meet the
following requirements: (i) Be between
the Lessee or its affiliated entity, or, if
appropriate, its assignee(s), and an
impacted community; (ii) Specify how
the impacted community is likely to be
affected by the potential impacts on the
marine, coastal, and/or human
environment from activities resulting
from lease development; (iii) Address
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impacts to the impacted community
arising from lease development that are
not addressed by a Lease Area Use CBA;
(iv) Specify the monetary, material, or
other benefits provided, or to be
provided, by the Lessee to the impacted
community, including any mitigation or
other compensatory measures provided
by the Lessee to the impacted
community; (v) Indicate commitment of
parties to collaboration and resolution
of issues. This commitment may be
indicated by a statement that the parties
will agree to mediation, a strategy for
collaboration, or other type of plan
describing how the parties will
collaborate or resolve issues as needed;
(vi) Describe communication methods,
engagement methods, or educational
opportunities for the impacted
community; and (vii) Specify plans (or
strategies) to mitigate potential impacts
from the proposed development of the
Lease Area on the impacted community.
iii. No General CBA otherwise eligible
for a bidding credit may include
exclusivity or preferential clauses that
prevent or disincentivize an impacted
community from entering into such
agreements with other lessees or
potential lessees.
iv. No portion of a CBA, fund, or
agreement used for this credit may be
used to meet the requirements of any
other bidding credit for which the
Lessee qualifies.
v. Lessees may execute a General CBA
with a single entity, which may be a
coalition that represents the diverse
interests and inclusive needs of more
than one impacted community, or
multiple entities, or multiple impacted
communities, and may execute more
than one General CBA.
vi. Any benefits provided to the
impacted community should not
duplicate benefits or mitigation
measures imposed on the Lessee
through, or pursuant to, statutes other
than OCSLA. For example, such benefits
could include: (i) Contributions to a
community benefit fund whose purpose
is to provide funds for infrastructure to
impacted communities to alleviate
impacts from the Lessee’s project; (ii)
Increased support to facilitate
engagement in the process through
which the lease will be developed; and
(iii) Mitigating potential impacts to
cultural viewsheds or potential impacts
on marine and land species that are of
significance to Tribal culture or
impacted communities.
vii. A bidder who receives this credit
must use best efforts to provide benefits
at least commensurate to the value of
the bidding credit received. This may
include both monetary and nonmonetary benefits.
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viii. Documentation: If a lease is
awarded pursuant to a winning bid that
includes this CBA credit, the Lessee
must provide written documentation to
BOEM demonstrating execution of the
CBA commitment no later than
submission of the Lessee’s first FDR.
The documentation must enable BOEM
to objectively verify the CBA has met all
applicable requirements as outlined in
the BFF Addendum and lease. At a
minimum, this documentation must
include: all written agreements between
the Lessee and beneficiary(ies),
including the executed CBA;
description of work done with impacted
communities to reach monetary and
non-monetary commitments that reflect
the value of the bidding credit received;
and sworn statements by the CBA
signatories or their assignees attesting to
the truth and accuracy of all the
information provided in the above
documentation. The documentation
must contain and elaborate on the
information specified in the conceptual
strategy that was submitted with the
BFF. If the Lessee’s conceptual strategy
has changed due to market needs or
other factors, the Lessee must explain
this change.
ix. Enforcement: The commitment for
the General CBA Bidding Credit will be
made in the BFF and will be included
in a lease addendum that binds the
Lessee and all assignees of the lease. If
BOEM were to determine that a Lessee
or assignee had failed to enter into a
General CBA that satisfies the
commitment by the Lessee’s first FDR
submission, or if a Lessee were to
relinquish or otherwise fail to develop
the lease by the tenth anniversary date
of lease issuance, the amount
corresponding to the bidding credit
awarded will be immediately due and
payable to ONRR with interest from the
date of lease execution. The interest rate
will be the underpayment interest rate
identified by ONRR. BOEM can, at its
sole discretion, extend the
documentation deadline beyond the
first FDR submission or the 10-year
timeframe.
e. The Auction: Using an online
bidding system to host the auction,
BOEM will start the bidding for Leases
OCS–P 0561 through 0565, as described
below. All five of the Lease Areas will
be offered in a single auction, and there
will be no distinction made between
Lease Areas in the Humboldt WEA and
the Morro Bay WEA within the auction
process. Each bidder may only bid for
one of the offered Lease Areas at a time
and, ultimately, acquire only one of the
Lease Areas in the auction.
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contested bid would be free to bid on
any Lease Area in the auction in the
next round, at the new asking price.
OCS–P 0561 ........
63,338
$6,333,800
A bidder’s eligibility is for either one
OCS–P 0562 ........
69,031
6,903,100 or zero lease areas and corresponds to
OCS–P 0563 ........
80,062
8,006,200
the maximum number of lease areas that
OCS–P 0564 ........
80,418
8,041,800
OCS–P 0565 ........
80,418
8,041,800 a bidder may include in a live bid
during a single round of the auction.
If a bidder decides to stop bidding
Total ...............
373,268
before the final round of the auction,
there are circumstances in which the
f. Live Bids: The auction will be
bidder could nonetheless win a lease.
conducted in a series of rounds. At the
For example, that bidder could be
start of each round, BOEM will state an
ultimately selected in the winner
asking price for each Lease Area. If a
determination that is described in detail
bidder is willing to meet that asking
below, or the provisionally winning
price for one of the Lease Areas, it will
bidder could be disqualified at the
indicate its intent by submitting a bid
equal to the asking price for the selected award stage of the auction. In these
circumstances, the bidder will be bound
lease area. A bid at the full asking price
by its bid and thus obligated to pay the
is referred to as a ‘‘live bid.’’ If the
bidder has qualified for a non-monetary full bid amount. Bidders therefore might
be bound by any of their bids up to and
credit, it will meet the asking price by
until the point at which the auction
submitting a multiple-factor bid—that
results are finalized.
is, a live bid that consists of a monetary
Between rounds, BOEM will disclose
(cash) element and a non-monetary
to all bidders that submitted bids: (1)
credit (5%, 10%, 20%, 25%, or 30% of
the number of live bids (including
the cash element, depending on the
carried-forward bids) for each Lease
bidder’s qualification for bidding
Area in the previous round of the
credits), the sum of which equals the
auction (i.e., the level of demand at the
asking price. Bidders without a nonasking price); and (2) the asking price
monetary credit will submit a cash bid
equal to the asking price. To participate for each Lease Area in the upcoming
round of the auction.
in the next round of the auction, a
g. Exit Bids: In any round after the
bidder is required to have submitted a
first round, a bidder may submit an
live bid for one of the Lease Areas (or
‘‘exit bid’’ (also known as an ‘‘intrahave a carried-forward bid) in each
round bid’’) only for the same Lease
previous round.
Area as the bidder’s contested live bid
As long as there are two or more live
bids (including carried-forward bids) for in the previous round. An exit bid is a
bid that is greater than the previous
at least one of the Lease Areas, the
auction moves to the next round. BOEM round’s asking price, but less than the
will raise the asking price for each Lease current round’s asking price. An exit bid
Area that received two or more live bids is not a live bid, and it represents the
in the previous round. Asking price
final bid that a bidder may submit in the
increments will be determined based on auction. A bidder may not submit both
several factors, including, but not
an exit bid on one of the Lease Areas
necessarily limited to, the expected time and a live bid on a different Lease Area.
needed to conduct the auction and the
During the auction, the exit bid can be
number of rounds that have already
seen only by BOEM and not by other
occurred. BOEM reserves the right to
bidders.
increase or decrease bidding increments
The auction ends when a round
as it deems appropriate. If there was
occurs in which each of the Lease Areas
only one live bid (including carriedin the auction receives one or zero live
forward bids) or no live bids for a Lease bids (including carried-forward bids),
Area in the previous round, the asking
regardless of the number of exit bids on
price would not be increased.
any Lease Area.
A live bid would automatically be
h. Determination of Provisional
carried forward if it was uncontested in
Winners: After the bidding ends, BOEM
the previous round (i.e., if it was the
will determine the provisionally
only live bid for that Lease Area in the
winning bid for each Lease Area by the
previous round), and the bidder who
following two-stage procedure.
In stage one, the highest bid (live bid
placed the uncontested bid would not
or exit bid) received for each Lease Area
be permitted to place any other bid in
in the final round will be designated the
the current round of the auction.
Conversely, if a live bid was contested provisionally winning bid, if there is a
in the previous round (i.e., if there was
single highest bid. In the event of a tie
at least one other live bid for the same
(i.e., if two or more bidders submitted
Lease Area, including carried-forward
identical highest exit bids for the same
bids), the bidder who placed the
Lease Area), the selection of one of the
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highest exit bids will be deferred until
stage two.
In stage two, BOEM will consider bids
from all bidding rounds for Lease Areas
that were not assigned in stage one
made by bidders who were not assigned
a Lease Area in stage one. 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)
must be 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 will be 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 use of
pseudorandom numbers. The
provisional winners will pay the
amounts of their provisionally winning
bids, or risk forfeiting their bid deposits.
A provisional winner will be
disqualified if it is subsequently found
to have violated auction rules or BOEM
regulations, or otherwise engaged in
conduct detrimental to the integrity of
the competitive auction. If a bidder
submits a bid that BOEM determines to
be a provisionally winning bid, the
bidder must sign the applicable lease
documents, establish financial
assurance, and submit the cash balance
(if any) of its bid (i.e., its winning cash
bid less its 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 a provisionally winning bidder
if that bidder fails to: timely return the
signed lease form, establish adequate
financial assurance, pay the balance of
its winning bid, or otherwise comply
with applicable regulations or the terms
of the FSN. In that case, the bidder
would forfeit its bid deposit.
BOEM will publish the provisional
winners and the provisionally winning
bid amounts shortly after the conclusion
of the sale. Full bid results, including
round-by-round results of the entire
sale, including exit bids, will be
published on BOEM’s website after
review of the results and announcement
of the provisional winners.
i. Additional Information Regarding
the Auction Format:
i. Authorized Individuals and Bidder
Authentication: A company that is
eligible to participate in the auction will
identify on its BFF up to three
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individuals who would be 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 any auction system
technical supplement (ASTS) that may
be issued.
The auction system will require
software tokens for two-factor
authentication. To set up the tokens,
authorized individuals will download
an app onto their smartphone or tablet
with 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 required
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 deactivate that
bidder’s tokens and login information.
ii. Timing of Auction: The auction
will begin at 10:00 a.m. EST on
December 6, 2022. Bidders may log in
as early as 9:30 a.m. EST on that day.
BOEM recommends that bidders log in
earlier than 10:00 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 substantially 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 one to two business days, but may
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continue for additional business days as
necessary until the auction has
concluded.
iii. Messaging service: BOEM and the
auction contractors will use the auction
platform messaging service to keep
bidders informed on issues of interest
during the auction. For example, BOEM
may change the schedule at any time,
including during the auction. If BOEM
changes the schedule during an auction,
it will use the messaging feature to
notify bidders that a revision has been
made and will direct bidders to the
relevant page. BOEM will also use the
messaging system for other updates
during the auction.
Bidders may place bids at any time
during the round. At the top of the
bidding page, a countdown clock shows
how much time remains in the round.
Bidders have until the end of the round
to place bids. Bidders should place bids
according to the procedures described
in this notice and the Bidder Manual.
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.
BOEM may issue an ASTS to
elaborate on the auction procedures
described in this FSN. In the event of
any inconsistency between the Bidder
Manual, the ASTS, and the FSN, the
FSN will be controlling.
iv. 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
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 needs to be submitted.
BOEM may, in its sole discretion,
permit or refuse to accept a request for
the placement of a bid using this
alternate telephonic bidding procedure.
j. Prohibition on Communications
Between Bidders During Auction:
During the auction, bidders are
prohibited from communicating with
each other regarding their participation
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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 to reject any
and all bids that do not satisfy the
requirements and rules of the auction,
the FSN, or applicable regulations and
statutes.
b. Anti-Competitive Review
Bidding behavior in this sale is
subject to Federal antitrust laws.
Following the auction, but before the
acceptance of bids and the issuance of
the lease, BOEM will ‘‘allow the
Attorney General, in consultation with
the Federal Trade Commission, thirty
days to review the results of [the] lease
sale.’’ 43 U.S.C. 1337(c)(1). If a
provisionally winning bidder is found
to have engaged in anti-competitive
behavior in connection with this lease
sale, BOEM will 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;
3. An agreement among bidders not to
bid against each other; or
4. Other agreements among bidders
that have the potential to affect the final
auction price.
Pursuant to 43 U.S.C. 1337(c)(3),
BOEM 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 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.
c. Process for Issuing the Lease
Once all post-auction reviews have
been completed to BOEM’s satisfaction,
BOEM will provide three unsigned
copies of the lease to each provisionally
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winning bidder. Within 10 business
days after receiving the lease copies, the
provisionally winning bidders must:
1. Sign and return the lease copies on
the bidder’s behalf;
2. File financial assurance, as required
under 30 CFR 585.515–537; and
3. Pay by electronic funds transfer
(EFT) the balance (if any) of the bonus
bid (winning monetary bid less the
applicable non-monetary bidding credit
and bid deposit). BOEM requires
bidders to use EFT procedures (not
pay.gov, the website bidders used to
submit bid deposits) for payment of the
balance of the bonus bid, following the
detailed instructions contained in the
‘‘Instructions for Making Electronic
Payments’’ available on BOEM’s website
at: https://www.boem.gov/renewableenergy/state-activities/eft-paymentinstructions-ca.
BOEM will not execute the 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 10business-day deadline for signing a
lease, filing the required financial
assurance, and paying the balance of the
bonus bid if BOEM determines, in its
sole discretion, that the provisionally
winning bidder’s inability to comply
with the deadline was caused by events
beyond the provisionally winning
bidder’s control pursuant to 30 CFR
585.224(e).
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 lease copies, each provisionally
winning bidder will be required to pay
the first year’s rent using the ‘‘ONRR
Renewable Energy Initial Rental
Payments’’ form available at: https://
www.pay.gov/public/form/start/
27797604/.
Subsequent annual rent payments
will be required to be made following
the detailed instructions contained in
the ‘‘Instructions for Making Electronic
Payments,’’ available on BOEM’s
website at: https://www.boem.gov/
VerDate Sep<11>2014
19:08 Oct 20, 2022
Jkt 259001
renewable-energy/state-activities/
california.
d. Non-Procurement Debarment and
Suspension Regulations
Pursuant to 43 CFR part 42, subpart
C, an OCS renewable energy Lessee will
be required to comply with the
Department of the Interior’s nonprocurement debarment and suspension
regulations at 2 CFR parts 180 and 1400.
The Lessee must also communicate this
requirement to persons with whom the
Lessee does business relating to this
lease by including this requirement as a
condition in their contracts and other
transactions.
e. Changes to Auction Details
The Regional Director of BOEM’s
Pacific Regional Office has the
discretion to change any auction detail
specified in the FSN, including the date
and time, if s/he deems that events
outside BOEM’s control may interfere
with a fair and proper lease sale. Such
events may include, but are not limited
to, natural disasters (e.g., earthquakes,
hurricanes, floods, and blizzards), wars,
riots, act of terrorism, fire, strikes, civil
disorder, Federal Government
shutdowns, cyberattacks against
relevant information systems, or other
events of a similar nature. In case of
such events, BOEM would notify all
qualified bidders via email, phone, and
BOEM’s website at: https://
www.boem.gov/renewable-energy/stateactivities/california. Bidders should call
(703) 787–1121 if they have concerns.
f. 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. If BOEM exercises this right, it
will refund bid deposits to winning
bidders, without interest, as provided in
30 CFR 585.224(f).
g. Appeals
The bid rejection procedures are
provided in BOEM’s regulations at 30
CFR 585.225 and 585.118(c). Under 30
CFR 585.225:
(a) If BOEM rejects your bid, BOEM
will provide a written statement of the
reasons and will refund any money
deposited with your bid, without
interest.
(b) You will then be able to ask the
BOEM Director for reconsideration, in
writing, within 15 business days of bid
rejection, under 30 CFR 585.118(c)(1).
The Director will send you a written
response either affirming or reversing
the rejection.
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
64109
The procedures for requesting
reconsideration of a bid rejection are
described in 30 CFR 585.118(c).
h. Protection of Privileged or
Confidential Information
BOEM will protect privileged or
confidential information that the Lessee
submits, as authorized by the Freedom
of Information Act (FOIA), 30 CFR
585.113, or other applicable statutes. If
the Lessee wishes to protect the
confidentiality of information, the
Lessee should clearly mark it ‘‘Contains
Privileged or Confidential Information’’
and consider submitting such
information as a separate attachment.
BOEM will not disclose such
information, except as required by
FOIA. If your submission is requested
under the FOIA, your information will
only be withheld if a determination is
made that one of the FOIA’s exemptions
to disclosure applies. Such a
determination will be made in
accordance with the Department’s FOIA
regulations and applicable law. Labeling
information as privileged or confidential
will alert BOEM to more closely
scrutinize whether it warrants
withholding. Further, BOEM will not
treat as confidential aggregate
summaries of otherwise nonconfidential
information.
XV. Compliance With the Inflation
Reduction Act (Pub. L. 117–169 (Aug.
16, 2022)(Hereinafter, the ‘‘IRA’’):
Section 50265(b)(2) of the IRA
provides that ‘‘[d]uring the 10-year
period beginning on the date of
enactment of this Act . . . the Secretary
may not issue a lease for offshore wind
development under section 8(p)(1)(C) of
the Outer Continental Shelf Lands Act
(43 U.S.C. 1337(p)(1)(C)) unless— (A) an
offshore lease sale has been held during
the 1-year period ending on the date of
the issuance of the lease for offshore
wind development; and (B) the sum
total of acres offered for lease in offshore
lease sales during the 1-year period
ending on the date of the issuance of the
lease for offshore wind development is
not less than 60,000,000 acres.’’ Section
50264(d) of the IRA provides that ‘‘. . .
not later than March 31, 2023, the
Secretary shall conduct Lease Sale
259[.]’’ Conducting Lease Sale 259 is
needed for BOEM to satisfy the
requirements in section 50265(b)(2) of
the IRA and issue the leases resulting
from this lease sale. Notwithstanding
the foregoing, nothing in the IRA
prevents BOEM from holding this
auction.
E:\FR\FM\21OCN1.SGM
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64110
Federal Register / Vol. 87, No. 203 / Friday, October 21, 2022 / Notices
Authority: 43 U.S.C. 1337(p); 30 CFR
585.211 and 585.216.
Amanda Lefton,
Director, Bureau of Ocean Energy
Management.
[FR Doc. 2022–22871 Filed 10–20–22; 8:45 am]
BILLING CODE 4310–MR–P
INTERNATIONAL TRADE
COMMISSION
[Inv. No. 337–TA–1338]
Certain Smart Televisions; Institution
of Investigation
U.S. International Trade
Commission.
ACTION: Notice.
AGENCY:
Notice is hereby given that a
complaint was filed with the U.S.
International Trade Commission on
September 15, 2022, under section 337
of the Tariff Act of 1930, as amended,
on behalf of Maxell, Ltd. of Japan. A
supplement was filed on September 26,
2022. The complaint, as supplemented,
alleges violations of section 337 based
upon the importation into the United
States, the sale for importation, and the
sale within the United States after
importation of certain smart televisions
by reason of the infringement of certain
claims of U.S. Patent No. 8,549,109
(‘‘the ’109 patent’’); U.S. Patent No.
8,170,394 (‘‘the ’394 patent’’); U.S.
Patent No. 10,958,971 (‘‘the ’971
patent’’); and U.S. Patent No. 11,017,815
(‘‘the ’815 patent’’). The complaint
further alleges that an industry in the
United States exists as required by the
applicable Federal Statute. The
complainant requests that the
Commission institute an investigation
and, after the investigation, issue a
limited exclusion order and a cease and
desist order.
ADDRESSES: The complaint, except for
any confidential information contained
therein, may be viewed on the
Commission’s electronic docket (EDIS)
at https://edis.usitc.gov. For help
accessing EDIS, please email
EDIS3Help@usitc.gov. Hearing impaired
individuals are advised that information
on this matter can be obtained by
contacting the Commission’s TDD
terminal on (202) 205–1810. Persons
with mobility impairments who will
need special assistance in gaining access
to the Commission should contact the
Office of the Secretary at (202) 205–
2000. General information concerning
the Commission may also be obtained
by accessing its internet server at
https://www.usitc.gov.
jspears on DSK121TN23PROD with NOTICES
SUMMARY:
VerDate Sep<11>2014
19:08 Oct 20, 2022
Jkt 259001
FOR FURTHER INFORMATION CONTACT:
Jessica Mullan, Office of Docket
Services, U.S. International Trade
Commission, telephone (202) 205–1802.
SUPPLEMENTARY INFORMATION:
Authority: The authority for
institution of this investigation is
contained in section 337 of the Tariff
Act of 1930, as amended, 19 U.S.C.
1337, and in section 210.10 of the
Commission’s Rules of Practice and
Procedure, 19 CFR 210.10 (2022).
Scope of Investigation: Having
considered the complaint, the U.S.
International Trade Commission, on
October 17, 2022, ordered that—
(1) Pursuant to subsection (b) of
section 337 of the Tariff Act of 1930, as
amended, an investigation be instituted
to determine whether there is a
violation of subsection (a)(1)(B) of
section 337 in the importation into the
United States, the sale for importation,
or the sale within the United States after
importation of certain products
identified in paragraph (2) by reason of
infringement of one or more of claim 4
of the ’109 patent; claims 2, 4, 5, 7, and
8 of the ’394 patent; claim 1 of the ’971
patent; and claims 1 and 21 of the ’815
patent, and whether an industry in the
United States exists as required by
subsection (a)(2) of section 337;
(2) Pursuant to section 210.10(b)(1) of
the Commission’s Rules of Practice and
Procedure, 19 CFR 210.10(b)(1), the
plain language description of the
accused products or category of accused
products, which defines the scope of the
investigation, is ‘‘certain smart
televisions, i.e., certain VIZIO-branded
smart televisions’’;
(3) For the purpose of the
investigation so instituted, the following
are hereby named as parties upon which
this notice of investigation shall be
served:
(a) The complainant is: Maxell, Ltd.,
1 Koizumi, Oyamazaki, Oyamazaki-cho,
Otokuni-gun, Kyoto, 618–8525 Japan.
(b) The respondent is the following
entity alleged to be in violation of
section 337, and is the party upon
which the complaint is to be served:
VIZIO, Inc., 39 Tesla, Irvine, CA 92628.
(4) For the investigation so instituted,
the Chief Administrative Law Judge,
U.S. International Trade Commission,
shall designate the presiding
Administrative Law Judge.
The Office of Unfair Import
Investigations will not participate as a
party in this investigation.
Responses to the complaint and the
notice of investigation must be
submitted by the named respondent in
accordance with section 210.13 of the
Commission’s Rules of Practice and
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
Procedure, 19 CFR 210.13. Pursuant to
19 CFR 201.16(e) and 210.13(a), as
amended in 85 FR 15798 (March 19,
2020), such responses will be
considered by the Commission if
received not later than 20 days after the
date of service by the complainant of the
complaint and the notice of
investigation. Extensions of time for
submitting responses to the complaint
and the notice of investigation will not
be granted unless good cause therefor is
shown.
Failure of the respondent to file a
timely response to each allegation in the
complaint and in this notice may be
deemed to constitute a waiver of the
right to appear and contest the
allegations of the complaint and this
notice, and to authorize the
administrative law judge and the
Commission, without further notice to
the respondent, to find the facts to be as
alleged in the complaint and this notice
and to enter an initial determination
and a final determination containing
such findings, and may result in the
issuance of an exclusion order or a cease
and desist order or both directed against
the respondent.
By order of the Commission.
Issued: October 18, 2022.
Jessica Mullan,
Attorney Advisor.
[FR Doc. 2022–22954 Filed 10–20–22; 8:45 am]
BILLING CODE 7020–02–P
INTERNATIONAL TRADE
COMMISSION
[Investigation Nos. 701–TA–552 and 731–
TA–1308 (Review)]
Pneumatic Off-the-Road (OTR) Tires
From India; Scheduling of Full FiveYear Reviews
United States International
Trade Commission.
ACTION: Notice.
AGENCY:
The Commission hereby gives
notice of the scheduling of full reviews
pursuant to the Tariff Act of 1930 (‘‘the
Act’’) to determine whether revocation
of the antidumping duty and
countervailing duty orders on
pneumatic off-the-road (‘‘OTR’’) tires
from India would be likely to lead to
continuation or recurrence of material
injury within a reasonably foreseeable
time. The Commission has determined
to exercise its authority to extend the
review period by up to 90 days.
DATES: October 17, 2022.
FOR FURTHER INFORMATION CONTACT: Julie
Duffy ((202) 708–2579), Office of
Investigations, U.S. International Trade
SUMMARY:
E:\FR\FM\21OCN1.SGM
21OCN1
Agencies
[Federal Register Volume 87, Number 203 (Friday, October 21, 2022)]
[Notices]
[Pages 64093-64110]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-22871]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
[Docket No. BOEM-2022-0017]
Pacific Wind Lease Sale 1 (PACW-1) for Commercial Leasing for
Wind Power on the Outer Continental Shelf in California--Final Sale
Notice
AGENCY: Bureau of Ocean Energy Management, Interior.
ACTION: Final sale notice.
-----------------------------------------------------------------------
SUMMARY: This Final Sale Notice (FSN) contains information pertaining
to the areas available for commercial wind energy leasing on the Outer
Continental Shelf (OCS) offshore California. 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 five leases for sale using a
multiple-factor bidding auction format: Lease OCS-P 0561, Lease OCS-P
0562, Lease OCS-P 0563, Lease OCS-P 0564, and Lease OCS-P 0565 (Lease
Areas). The issuance of any lease resulting from this sale would not
constitute 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 BOEM
decision on whether the proposed development should be authorized.
DATES: BOEM will hold an online mock auction for potential bidders
starting at 7:00 a.m. Pacific Standard Time (PST)/10 a.m. Eastern
Standard Time (EST) on December 5, 2022. The monetary auction will be
held online and will begin at 7 a.m. PST/10 a.m. EST on December 6,
2022. Additional details are provided in the section entitled
``Deadlines and Milestones for Bidders.''
FOR FURTHER INFORMATION CONTACT: Sara Guiltinan, Bureau of Ocean Energy
Management, Pacific Regional Office, Mail Stop CM 102, 760 Paseo
Camarillo (Suite 102), Camarillo, California 93010-6002, (805) 384-
6345, or [email protected].
SUPPLEMENTARY INFORMATION:
[[Page 64094]]
I. Background
The OCS Lands Act authorizes BOEM to offer renewable energy leases
for sale on the OCS competitively, unless BOEM determines there is no
competitive interest. On October 19, 2018, BOEM published a Call for
Information and Nominations in the Federal Register (83 FR 53096)
(``2018 Call'') that identified three geographically distinct Call
Areas on the OCS offshore California, delineated as the Humboldt Call
Area (offshore the north coast) and the Morro Bay Call Area and the
Diablo Canyon Call Area (offshore the central coast). On July 29, 2021,
BOEM published a Call for Information and Nominations in the Federal
Register (86 FR 40869) (``2021 Call'') that delineated two extensions
to the Morro Bay Call Area, known as the East and West Extensions. In
response to the 2018 Call and 2021 Call, BOEM identified the Humboldt
Wind Energy Area (WEA) on July 28, 2021, and the Morro Bay WEA on
November 12, 2021, which together total 373,267 acres. BOEM proposed
this lease sale on May 31, 2022, in a Proposed Sale Notice (PSN)
published in the Federal Register (87 FR 32443). A 61-day comment
period followed. BOEM requested any prospective bidders wishing to
participate in a California lease sale to submit qualification
materials postmarked no later than August 1, 2022. BOEM also hosted an
auction seminar for prospective bidders on June 16, 2022, to discuss
the proposed auction format. BOEM received 84 comment submissions in
response to the PSN, which are available on regulations.gov (Docket ID:
BOEM-2022-0017) at: https://www.regulations.gov/document/BOEM-2022-0017-0001. BOEM has posted its responses to the comments that were
submitted during the PSN comment period. The document entitled,
Response to Comments, can be found on BOEM's website at: https://www.boem.gov/renewable-energy/state-activities/california.
In response to the comments received, BOEM made several changes to
the PACW-1 sale format and procedures from those proposed in the PSN
and to the lease stipulations in the Proposed Leases. The changes
include alterations to the sale format, which is now a single auction
in which all the Lease Areas will be offered. In each round of the
auction, a bidder can bid for at most one of the offered leases at a
time. A bidder can switch between different Lease Areas from round to
round, but it must bid in each round, and ultimately it can acquire at
most one of the leases in the auction. Other changes from the PSN
include the addition of a 5 percent bidding credit for bidders who have
committed to a qualifying General Community Benefit Agreement (CBA); an
increase in the amount of the credit offered for the Lease Area Use CBA
bidding credit from 2.5 to 5 percent; and removal of the requirement
for a 25 percent commitment of funds associated with the workforce
training and/or supply chain development bidding credit at the time of
the submission of the Lessee's first Construction and Operations Plan
(COP). In addition, BOEM developed and refined a number of lease
stipulations, based on feedback solicited in the PSN, including
provisions to: advance Lessee engagement with Tribes and parties that
may be affected by the Lessee's activities on the OCS; protect national
security; require the Lessee to coordinate with the California Coastal
Commission on plan submissions; require the Lessee to use an
independent Fisheries Liaison and protect the environment through the
imposition of vessel speed requirements, marine mammal monitoring
measures, a site-specific spill prevention and response plan, a
critical operations and curtailment plan, requirements related to the
avoidance of intentional contact within hard substrate, rock
outcroppings, seamounts, or deep-sea coral/sponge habitat, and use of
low-energy geophysical survey equipment.
II. List of Eligible Bidders
BOEM has determined that the following 43 entities are legally,
technically, and financially qualified to hold a commercial wind lease
offshore California, pursuant to 30 CFR 585.106 and 585.107, and
therefore may participate in this lease sale as bidders subject to
meeting the requirements outlined in this notice. Those entities are
listed below:
------------------------------------------------------------------------
Company name Company No.
------------------------------------------------------------------------
547 Energy LLC....................................... 15123
AEUG Offshore LLC.................................... 15158
Algonquin Power Fund (America) Inc................... 15090
Arevia Power LLC..................................... 15129
Avangrid Renewables, LLC............................. 15019
BP US Offshore Wind Energy LLC....................... 15122
California North Floating LLC........................ 15145
California Offshore Wind Development LLC............. 15147
California South Floating LLC........................ 15146
Castle Wind LLC...................................... 15085
Central California Offshore Wind LLC................. 15110
Cademo Corporation................................... 15093
Cierco Project Corporation........................... 15149
Clearway Renew LLC................................... 15109
Corio OSW Investments LLC............................ 15148
CPV Offshore Wind LP................................. 15114
EDF Renewables Development, Inc...................... 15027
EDPR Offshore North America LLC...................... 15074
Equinor Wind US LLC.................................. 15058
Ferrovial Energy US 1, LLC........................... 15150
GW Offshore Wind LLC................................. 15121
Hexicon USA, LLC..................................... 15151
Ideol USA Inc........................................ 15163
Invenergy California Offshore LLC.................... 15152
JERA Renewables NA, LLC.............................. 15131
Marubeni Power International, Inc.................... 15128
Mission Floating Wind LLC............................ 15087
Northcoast Floating Wind LLC......................... 15088
Northland Power America Inc.......................... 15068
[[Page 64095]]
Orsted North America Inc............................. 15059
Pacific Moon Offshore Wind LLC....................... 15159
Pacific Offshore Wind LLC............................ 15153
Redwood Coast Energy Authority (RCEA)................ 15084
Redwood Coast Offshore Wind LLC...................... 15106
RWE Renewables Development, LLC...................... 15080
RWE Offshore Wind Holdings, LLC...................... 15061
Seaglass Offshore Wind I, LLC........................ 15154
Seaglass Offshore Wind II, LLC....................... 15155
Shell New Energies US LLC............................ 15140
SSE Renewable North America Offshore Wind LLC........ 15124
TotalEnergies Renewables USA, LLC.................... 15136
US Mainstream Renewable Power Inc.................... 15089
wpd offshore Alpha, LLC.............................. 15060
------------------------------------------------------------------------
a. Affiliated Entities: On the Bidder's Financial Form (BFF),
discussed in sections III(a)(i) and X below, eligible bidders must list
any other eligible bidders with whom they are affiliated. For the
purpose of identifying affiliated entities, ``person'' means any
individual, firm, corporation, association, partnership, consortium, or
joint venture (when established as a separate entity). BOEM considers
two entities to be affiliated if:
(1) They own or have common ownership of more than 50 percent of
the voting securities, or instruments of ownership or other forms of
ownership, of another person. Such ownership of less than 10 percent of
a person constitutes a presumption of non-control that BOEM may rebut.
(2) They own or have common ownership of 10 through 50 percent of
the voting securities or instruments of ownership, or other forms of
ownership, of another person, and BOEM determines that there is control
upon consideration of the following factors:
(i) The extent to which there are common officers or directors.
(ii) With respect to the voting securities, or instruments of
ownership or other forms of ownership: The percentage of ownership or
common ownership, the relative percentage of ownership or common
ownership compared to the percentage(s) of ownership by other persons,
if a person is the greatest single owner, or if there is an opposing
voting bloc of greater ownership.
(iii) Shared operation of a lease, grant, or facility as defined in
BOEM's regulations at 30 CFR 585.112.
(iv) The extent of other owners' participation in operations and
day-to-day management of a lease, grant, or facility as defined in
BOEM's regulations at 30 CFR 585.112.
(v) Other evidence of power to exercise control over or common
control with another person.
(3) Regardless of any percentage of ownership or common ownership,
they are relatives, either by blood or marriage.
(4) They are both direct, or indirect, subsidiaries of the same
parent company.
Affiliated eligible bidders are not permitted to compete against
each other in the auction. Where multiple affiliated bidders have
qualified to bid in the auction, bidders must decide prior to the
auction which one eligible affiliated bidder (if any) will participate
in the auction. If two or more affiliated bidders attempt to
participate in the auction, BOEM will disqualify such bidders from the
auction.
III. Deadlines and Milestones for Bidders
This section describes the major deadlines and milestones in the
auction process from publication of this FSN to execution of the lease
pursuant to this sale.
a. FSN Waiting Period: During the period between FSN publication
and the lease auction (i.e., minimum 30 days), qualified bidders must
take several steps to remain eligible to participate in the auction.
i. Bidder's Financial Form: Each bidder must submit a BFF to BOEM
to participate in the auction. The BFF must contain each bidder's
conceptual strategy for each non-monetary credit (also referred to
herein as ``bidding credit'') for which the bidder wishes to be
considered. BOEM will consider any BFF received on or before November
4, 2022, and it is each bidder's responsibility to ensure BOEM's timely
receipt. If a bidder does not submit a BFF by this deadline, BOEM, in
its sole discretion, may grant an extension to that bidder only if BOEM
determines the bidder's failure to timely submit a BFF was caused by
events beyond the bidder's control. The BFF can be downloaded at:
https://www.boem.gov/renewable-energy/state-activities/california.
For purposes of this auction, BOEM will not consider BFFs submitted
by bidders for previous lease sales. The BFF must be executed by an
authorized representative listed on the bidder's legal qualifications
in the BFF, in accordance with 18 U.S.C. 1011 (Fraud and False
Statements). Further information about the BFF can be found in the
``Bidder's Financial Form'' section IX of this notice.
ii. Bid Deposit: Once BOEM has processed a BFF and provided the
appropriate information to Office of Natural Resources Revenue (ONRR),
ONRR will populate the Bid Deposit Forms and then will notify the
bidders that they should have access to pay.gov for the bid deposits.
The bidder must log into pay.gov to submit a bid deposit. To
participate in the mock auction and the monetary auction, each
qualified bidder must provide a bid deposit of $5,000,000 no later than
November 21, 2022. BOEM will consider extensions to this deadline only
if BOEM, in its sole discretion, determines that the failure to timely
submit the bid deposit was caused by events beyond the bidder's
control. Further information about bid deposits can be found in the
``Bid Deposit'' section XI of this notice. Per 30 CFR 585.222(e), BOEM
will send a written notice of its decision to accept or reject bids to
all bidders whose deposits we hold.
b. Conducting the Auction:
i. Affirmative Action: Prior to bidding in the monetary auction,
each bidder must file the Equal Opportunity Affirmative Action
Representation Form BOEM-2032 (February 2020, available on BOEM's
website at https://www.boem.gov/BOEM-2032/) and Equal Opportunity
Compliance Report Certification Form BOEM-2033 (February 2020,
available on BOEM's website at https://www.boem.gov/BOEM-2033/) with the
BOEM Pacific Regional Office. This certification is required by
[[Page 64096]]
41 CFR part 60 and Executive Order (E.O.) 11246, issued September 24,
1965, as amended by E.O. 11375, issued October 13, 1967, and by E.O.
13672, issued July 21, 2014. Both forms must be on file for the
bidder(s) in the BOEM Pacific Regional Office prior to the execution of
any lease contract.
ii. Mock Auction: BOEM will hold a Mock Auction on December 5,
2022, beginning at 7:00 a.m. PST/10:00 a.m. EST. BOEM will hold the
Mock Auction online. BOEM will contact each bidder that has timely
submitted 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.
iii. Multiple-factor Auction: On December 6, 2022, BOEM, through
its contractor, will commence the monetary auction. The first round of
the auction will start at 7:00 a.m. PST/10:00 a.m. EST. The auction
will proceed electronically according to a schedule to be distributed
by the BOEM Auction Manager at the beginning of the auction, subject to
any revisions that will be communicated to bidders during the auction.
BOEM anticipates that the auction may extend over two or more
consecutive business days, as necessary, until the auction ends in
accordance with the procedures described in the ``Auction Procedures''
section of this notice.
iv. Announce Provisional Winners: BOEM will announce the
provisional winners of the lease sale after the auction ends.
c. From the Auction to Lease Execution:
i. Notice and Refunds to 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 copies of the
lease to each provisional 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 non-monetary bidding credit and bid deposit), and sign
and return the three executed lease copies. In the event of a delay,
BOEM may extend the 10-business-day-time period for executing and
returning the lease if BOEM, in its sole discretion, determines the
delay to be caused by events beyond the 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 obligations have been met,
BOEM will make a final determination regarding its issuance of the
leases and will execute the leases, if appropriate.
IV. Areas Offered for Leasing
BOEM considered the following factors in delineating the Lease
Areas included in this FSN: reasonably comparable commercial viability
and size; prevailing wind direction and minimal wake effects; maximized
energy generating potential; mooring system anchor footprints; distance
to shore, port infrastructure, and electrical grid interconnections;
and fair return to the Federal Government pursuant to the OCS Lands Act
through competition for commercially viable lease areas.
All five Lease Areas included in this FSN are the size and
orientation that BOEM described in the Proposed Sale Notice. BOEM's
designation of the five Lease Areas offered in the FSN was informed by
its years-long coordination with BOEM's intergovernmental task force
members, consultation and engagement with Tribes, stakeholder
engagement, consideration of the 84 comments that BOEM received in
response to the PSN, and the U.S. Coast Guard's (USCG's) Draft Pacific
Coast Port Access Route Study (PAC-PARS). BOEM is offering five Lease
Areas totaling 373,268 acres for sale through this notice (Figure 1).
The areas available for lease will be auctioned in a single auction
as listed in the table below.
Table 1 to Section IV--PACW-1 Final Lease Areas
------------------------------------------------------------------------
Total
Lease acres
------------------------------------------------------------------------
OCS-P 0561................................................... 63,338
OCS-P 0562................................................... 69,031
OCS-P 0563................................................... 80,062
OCS-P 0564................................................... 80,418
OCS-P 0565................................................... 80,418
------------------------------------------------------------------------
BOEM is aware that NOAA's Office of National Marine Sanctuaries has
initiated a designation process for the proposed Chumash Heritage
National Marine Sanctuary, an area comprising approximately 7,000
square miles off the central coast of California adjacent to the Morro
Bay Lease Areas. BOEM does not have authority under the OCS Lands Act
to issue leases, right-of-way grants, or right-of-use and easement
grants within any unit of the National Marine Sanctuary System.
Potential bidders should note that future designation of a National
Marine Sanctuary adjacent to a Lease Area may have implications for
development of OCS leases for commercial wind energy due to BOEM's lack
of authority in National Marine Sanctuaries. BOEM is coordinating
closely with the NOAA Office of National Marine Sanctuaries to advance
both offshore wind energy projects and conservation and restoration of
ocean and coastal habitats. BOEM is a cooperating agency on NOAA's
Environmental Impact Statement on the Proposed Designation of the
Chumash Heritage National Marine Sanctuary and is providing input on
the ongoing renewable energy leasing process, as well as contributing
special expertise in marine energy and mineral matters. More
information on the proposed designation of Chumash Heritage National
Marine Sanctuary is available at: https://sanctuaries.noaa.gov/chumash-heritage/.
BOEM is also aware that the USCG has published a Draft PAC-PARS
that evaluates safe access routes for the movement of vessel traffic
proceeding to or from ports or places along the western seaboard of the
United States and aims to determine whether a Shipping Safety Fairway
and/or routing measures should be established, adjusted, or modified.
The recommendation found in the Draft PAC-PARS calls for the
establishment of voluntary fairways to coordinate the flow of vessel
traffic along several USCG districts from California to Washington. The
Draft PAC-PARS recommends that offshore fairways traverse near the
Humboldt and Morro Bay lease areas and states that these recommended
fairway routes would allow for the continued flow of vessel traffic
without interference from wind energy leasing activities in California.
BOEM is coordinating closely with the USCG to address potential
maritime impacts from any future offshore wind development in the Lease
Areas. More information on the PAC-PARS is available at https://www.regulations.gov/, under Docket No. USCG-2021-0345.
Additional information on potential restrictions due to navigation
and safety concerns can be found below in the Potential Future
Restrictions to Ensure Navigational Safety section VII(a).
BOEM is aware of two submarine cable systems that are scheduled for
installation or that are already installed in cable corridors that
overlap the Lease Areas. A planned submarine telecommunications cable
system,
[[Page 64097]]
known as the Bifrost Cable System, is expected to be installed in 2023
and completed in 2024 in a cable corridor that would overlap with the
southern portion of Lease OCS-P 0565. A telecommunications cables
project, known as RTI Infrastructure, Inc. Eureka Subsea Fiber Optic
Cables Project, was installed in August 2022 and overlaps with Lease
OCS-P 0561 and Lease OCS-P 0562.
a. Map of the Areas 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/california.
V. Environmental Review
On January 11, 2022, BOEM announced the availability of the Draft
Environmental Assessment (EA) that assesses potential environmental
impacts from site characterization and site assessment activities
expected to take place after the issuance of commercial leases within
the identified Humboldt WEA. On April 6, 2022, BOEM announced the
availability of the Draft EA that assesses potential environmental
impacts from site characterization and site assessment activities
expected to take place after the issuance of commercial leases within
the identified Morro Bay WEA. The EAs focus on potential environmental
consequences of site characterization activities (i.e., biological,
archaeological, geological, and geophysical surveys and core samples)
and site assessment activities (i.e., installation of meteorological
buoys) expected to take place after issuance of wind energy leases in
the Humboldt and Morro Bay WEAs. Concurrently with its preparation of
the EAs, BOEM conducted consultations under the Endangered Species Act
(ESA) and the Magnuson-Stevens Fishery Conservation and Management Act
regarding potential impacts to listed species, designated critical
habitat, and essential fish habitat, and conducted consistency reviews
under the Coastal Zone Management Act. BOEM prepared and executed a
programmatic agreement (PA) to guide its consultations under section
106 of the National Historic Preservation Act. The PA provides for
consultations to continue through BOEM's decision-making process
regarding the issuance of leases, right-of-way grants, and right-of-use
and easement grants on the OCS offshore California. The PA also
includes BOEM's phased identification and evaluation of historic
properties. The availability of the Final EA and Finding of No
Significant Impact for the Humboldt WEA was announced on May 5, 2022,
and the documents are available at: https://www.boem.gov/renewable-energy/state-activities/humboldt-wind-energy-area. The availability of
the Final EA and Finding of No Significant Impact for the Morro Bay WEA
was announced on October 5, 2022, and the documents are available at:
https://www.boem.gov/renewable-energy/state-activities/morro-bay-wind-energy-area. BOEM determined that the Proposed Actions would not cause
any significant impacts and that implementing the Proposed Actions do
not constitute major Federal actions 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 on the Proposed Sale Notice, BOEM is adding lease
stipulations that: (i) were discussed conceptually in the PSN, (ii)
include conditions of the California Coastal Commission's conditional
concurrence with the consistency determinations for the Humboldt and
Morro Bay WEAs, and (iii) include conditions from the Department of
Defense (DoD) to protect national defense capabilities and military
operations. BOEM is also refining some stipulations identified in the
PSN and proposed leases.
a. Reporting requirements: BOEM is building upon stipulations in
previous leases requiring a semi-annual progress report from lessees
and regular engagement with Tribes and parties that may be affected by
lessees' activities on the OCS. The lease stipulations include working
with: the California Native American Heritage Commission to identify
Tribes that have cultural and or historical ties to the Lease Areas;
coastal communities; commercial and recreational fishing industries and
stakeholders; educational and research institutions; environmental and
public interest non-governmental organizations; federal, state, and
local agencies; Tribes; mariners and the maritime industry; ocean
users; submarine cable operators; and underserved communities, as
defined in Section 2 of Executive Order 13985. Within the progress
report, lessees will be required to identify Tribes and parties that
may be affected by lessees' activities on the OCS and with whom the
lessees have engaged; provide updates on engagement activities;
document potential adverse effects to the interests of Tribes and
parties; document how, if at all, a project has been informed or
altered to address those potential effects; include feedback from
engagement regarding transmission planning prior to proposing any
export cable route; provide information that can be made available to
the public; and include strategies to reach potentially affected
individuals with Limited English Proficiency.
The stipulations include requirements for lessees to engage in ways
that minimize linguistic, technological, cultural, capacity, or other
obstacles. The stipulations encourage lessees to work collaboratively
with governments, community leadership and organizations, and Tribes
and to develop specific frameworks for capacity building.
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 made by Tribes and parties. Coordinated engagement among
Tribes and lessees is strongly encouraged and is in addition to BOEM's
responsibilities to federally recognized Tribes under Executive Order
13175.
In addition, the reporting stipulation requires that the progress
report incorporate separate lease requirements for the development of
communication plans for Tribal governments (Native American Tribes
Communications Plan), agencies (Agency Communications Plan), and
fisheries (Fisheries Communications Plan). Lastly, the progress report
must also include an update on activities executed under any survey
plan.
b. Expanding Engagement with Potentially Impacted Communities:
Executive Order 13985, ``Advancing Racial Equity and Support for
Underserved Communities Through the Federal Government,'' directs
advancement of equity for all, including people of color and others who
have been historically underserved, marginalized, and adversely
affected by persistent poverty and inequality. Executive Order 14008,
``Tackling the Climate Crisis at Home and Abroad,'' establishes a
policy to secure
[[Page 64098]]
environmental justice and spur economic opportunity for disadvantaged
communities through investing in and building a clean energy economy
and making environmental justice part of every agency's mission.
Consistent with its statutory and regulatory authorities, BOEM is
including lease stipulations designed to ensure that offshore wind
development projects are implemented in a manner that minimizes,
mitigates, and/or redresses the project's potential adverse effects, if
any, on Tribes and parties. The Lessee will engage in ways that
minimize linguistic, technological, cultural, capacity, or other
obstacles to Tribes and parties.
c. Commercial Fisheries: BOEM is including a stipulation in the
lease entitled, ``Commercial Fisheries,'' which would contain
components of stipulations in prior commercial leases issued by BOEM,
including a requirement for a Fisheries Communications Plan (FCP). BOEM
is adding elements to this stipulation in response to its extensive
engagement with Tribal governments, the fishing industry, and
governmental agencies. Major revisions include: (i) identifying dock
space and transit routes that would minimize space use conflicts and
potential impacts to protected species; (ii) minimizing both congestion
and the creation of obstacles that could result in an increased risk of
entanglement; (iii) to the extent practicable, prioritizing Federal and
state climate change adaptation strategies for fisheries; and (iv)
requiring that the Lessee contact potentially affected commercial
fishing communities prior to submitting its COP to discuss potential
conflicts between seasonal fishing operations and the Lessee's survey
and development activities.
d. Protected Species: In May 2022, BOEM published a Final Humboldt
WEA EA which includes the most current measures to minimize potential
adverse impacts to protected species, including Endangered Species Act
(ESA)-listed species of marine mammals and sea turtles. Similar
measures are included in the final Morro Bay WEA EA, published in
October 2022. BOEM has included in the leases these measures from the
EAs and from the ESA Concurrence Letter and EFH Response issued on
September 21, 2022 (https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/LOC-EFH%20for%20OSW%20leases%20in%20CA.pdf).
e. Project Labor Agreements (PLAs) and Supply Chain: BOEM is
committed to workforce development and safety and the establishment of
a durable domestic supply chain that can sustain the U.S. offshore wind
energy industry. To advance this vision, BOEM is including two lease
stipulations, one that encourages construction efficiency for projects
and the other that contributes towards establishing a domestic supply
chain:
i. The first stipulation requires lessees to make every reasonable
effort to enter into a PLA covering the construction stage of any
project for the Lease Areas. The PLA provisions for the construction of
an offshore wind project apply to all contractors.
ii. The second stipulation requires lessees to establish a
Statement of Goals in which the Lessee describes its plans for
contributing to the creation of a robust and resilient U.S.-based
floating offshore wind industry supply chain that would facilitate this
or other renewable energy projects permitted by BOEM. The Lessee is
required to provide regular progress updates on the achievement of
those goals to BOEM, and BOEM will make those updates publicly
available.
f. Research Site Access: This stipulation makes explicit that BOEM,
its designated representative, or any entity to which the Lessor
provides access retains the right to access the Lease Area for purposes
of future research and other activities conducted under the lease.
g. Archaeological Survey Requirements: BOEM is including a
modification of lease stipulations in previous commercial leases
regarding archaeological survey requirements. The revised stipulation
requires that the Lessee provide to BOEM, in the associated plan
submissions, a description of the methods it uses to conduct
archaeological surveys in support of plans (i.e., SAP and/or COP), in
addition to the survey results. The Lessee is required to coordinate a
Tribal pre-survey meeting with Tribes that have cultural and/or
historical ties to the Lease Area; the Lessee must work with BOEM and
the California Native American Heritage Commission to identify such
Tribes). In the post-review discovery clauses, the revised stipulation
requires that, in the event of unanticipated discovery of a potential
archaeological resource, the Lessee will immediately halt bottom-
disturbing activities within the area of discovery by a minimum of 50
meters (164 feet), and the avoidance distance must be calculated from
the maximum discernible extent of the archaeological resource. The
revised stipulation also adds a requirement in the post-review
discovery clauses that the Lessee refers to the NATCP for additional
guidance on notifications.
h. Foreign Interest: To protect national defense capabilities and
military operations, BOEM is requiring the Lessee to provide to DoD
specific information, including names of entities or persons having a
direct ownership interest in an offshore wind facility, and changes in
ownership interests; the names of the material vendors, entities, and
persons with which the Lessee will potentially execute contracts to
perform construction, supply turbines or other components, or conduct
construction and operational activities at the facility; and the names
of any foreign entities and persons (as those terms are defined at 31
CFR 800.220 and 31 CFR 800.224) allowed to access the wind turbine
structures and associated data systems. In addition, security concerns
raised by DoD must be resolved prior to allowing access to the site by
foreign persons or representatives of foreign entities for which DoD
has raised concerns or the use of wind turbines or other permanent on-
site equipment manufactured by such an entity.
i. Notice of Assignment to the Committee on Foreign Investment in
the United States (CFIUS): Under BOEM's regulations, a lessee must be
one of the following: (1) a citizen or national of the United States;
(2) an alien lawfully admitted for permanent residence in the United
States as defined in 8 U.S.C. 1101(a)(20); (3) a private, public, or
municipal corporation organized under the laws of any State of the
United States, the District of Columbia, or any territory or insular
possession subject to U.S. jurisdiction; (4) an association of such
citizens, nationals, resident aliens, or corporations; (5) an Executive
Agency of the United States as defined in section 105 of Title 5 of the
U.S. Code; (6) a State of the United States; or (7) a political
subdivision of States of the United States. However, this condition
addresses a situation where a proposed Lessee, even if in compliance
with BOEM's regulations, is a foreign-controlled business entity under
the regulations at 31 CFR part 800. In this situation, BOEM and the
proposed Lessee must jointly provide notice of the proposed transaction
to CFIUS in accordance with applicable regulations (subpart D of 31 CFR
part 800) and provide a copy of the notice to the DoD. Approval of any
assignment of lease interest that is subject to this stipulation would
only take place after CFIUS provides notice that it has concluded all
action under section 721 of the Defense Production Act of 1950, as
amended, with respect to the assignment.
[[Page 64099]]
j. California Coastal Commission Consistency Determination
Conditions: The following conditions were the result of the California
Coastal Commission consistency determination for the Morro Bay and
Humboldt WEAs [CD-0004-22 and CD-0001-22]. Upon consideration of the
record, BOEM has determined that these stipulations are appropriate and
reasonable as a means of balancing the factors set forth in OCSLA
Section 8(p) or to further expeditious development of the lease.
i. Vessel Speed Requirements: Vessels conducting lease
characterization studies, surveys, metocean buoy installation,
maintenance, or decommissioning, or any other survey activities must
travel at speeds of no more than 10 knots during all related
activities, including vessel transit.
ii. Marine Mammal Monitoring Measures: Lessees must implement all
marine wildlife and protection and monitoring measures during all
marine operations (e.g., surveys, buoy installation and removal),
consistent with vessel and worker safety. In addition, prior to the
start of offshore activities, the Lessee must provide awareness
training to all Project-related personnel and vessel crew, including
viewing of an applicable wildlife and fisheries training video, on the
most common types of marine wildlife likely to be encountered in the
project area and the types of activities that have the most potential
for affecting the animals.
iii. Site-specific Spill Prevention and Response Plan: The Lessee
must submit a site-specific Spill Prevention and Response Plan a
minimum of 30 days before commencement of any in-water survey
activities or as part of any survey plan or SAP. The Plan must be kept
on the appropriate survey vessels during all survey and SAP operations.
The Plan must identify the worst-case spill scenario and demonstrate
that adequate spill response equipment will be available. The Plan must
also include preventative measures the Lessee will implement to avoid
spills; clearly identify responsibilities of onshore and offshore
contractors and the Lessee's personnel; and must list and identify the
location of oil spill response equipment (including booms), appropriate
protocols, and response times for deployment. Petroleum-fueled
equipment on the main deck of all vessels must have drip pans or other
means of collecting dripped petroleum, which must be collected and
treated with onboard equipment.
iv. Critical Operations and Curtailment Plan (COCP): The Lessee
must include a COCP as part of any survey plan. The COCP must define
the limiting conditions of sea state, wind, or any other weather
conditions that exceed the safe operation of offshore vessels,
equipment, or divers in the water; that hinder potential spill cleanup;
or that in any way pose a threat to personnel or the safety of the
environment. The COCP must provide for a minimum ongoing five-day
advance weather forecast during offshore operations. The Plan must also
identify the onsite person with authority to determine critical
conditions and suspend work operations when needed. The COCP must be
kept on the appropriate survey vessels during all survey and SAP
operations.
v. Anchoring Plan: The Lessee must submit an Anchoring Plan to BOEM
as part of any survey plan that requires vessel anchoring. The Plan
must describe how the Lessee will avoid placing anchors on sensitive
ocean floor habitats, cables, and pipelines and must include supporting
information.
vi. Bottom Contact: The Lessee must avoid intentional contact with
hard substrate, rock outcroppings, seamounts, or deep-sea coral/sponge
habitat, and include a buffer of at least 40 feet (12 meters) from hard
bottom substrates that fully protects these habitats from bottom
contact, including, but not limited to, anchoring, mooring, and
sediment sampling.
vii. Use Low-Energy Equipment: The Lessee must use low-energy
equipment, as defined by California State Regulation 2 CCR Sec.
2100.03(g), to complete its geophysical surveys. Low-energy equipment
is limited to sub-bottom profilers (e.g., mini-sparkers). The Lessee is
encouraged to use geophysical survey operators that conduct their
surveys consistent with the provisions of the California State Lands
Commission's low-energy geophysical survey program.
viii. Coordination with the California Coastal Commission: The
Lessee must coordinate with the California Coastal Commission to ensure
the Lessee's survey and SAP submissions are coordinated and consistent,
minimize impacts to coastal resources, and provide the data and
information necessary for analysis of future consistency
certifications.
ix. Fisheries Liaison: The Lessee is required to use an independent
Fisheries Liaison that is responsible for the coordination and
communication of site activities with affected commercial,
recreational, and subsistence fishing communities and harbor districts,
including such coordination and communication concerning development
and implementation of survey plans and SAPs.
VII. Potential Future Restrictions
a. Potential Future Restrictions to Ensure Navigational Safety:
i. USCG Navigational Safety Measures: Potential bidders should note
that the USCG has conducted the Pacific Coast Port Access Route Study
(PAC-PARS) (draft report dated September 2022) to evaluate safe access
routes for the movement of vessel traffic proceeding to or from ports
or places along the western seaboard of the United States and to
determine whether a Shipping Safety Fairway and/or routing measures
should be established, adjusted, or modified. The draft PAC-PARS
evaluated the continued applicability of, and the need for
modifications to, current vessel routing measures. The draft PAC-PARS
recommends a voluntary fairway system with a 15-nautical-mile (NM)-wide
major thoroughfare that generally follows the existing offshore route
used by commercial container and bulk carrying vessels. The main trunk
of the fairway runs north-south, down to the Santa Barbara TSS north of
the Channel Islands. This fairway provides a voluntary, recommended
route for coastwise vessel traffic. Port approaches connect vessel
traffic entering and departing major California ports to the offshore
fairway. These fairways are generally 5 NMs wide, except for a larger
opening at the San Francisco east/west Transit Separation Scheme. While
data gathered during the finalization of the PAC-PARS may result in the
establishment of one or more new vessel routing measures, modification
of existing recommended routing measures, or disestablishment of
existing recommended routing measures off the Pacific Coast between
Washington and California, the draft PAC-PARS recommends offshore
fairways that traverse near the Humboldt and Morro Bay Lease Areas,
which are found in locations that allow for the continued flow of
vessel traffic along recommended fairway routes without interference
from wind energy leasing activities. The PAC-PARS study did not
consider issues that may arise relating to vessel anchorage needs,
particularly during emergency situations. Potential bidders should note
that the USCG is undertaking a national review of anchorage regulatory
standards. This may result in new recommendations from the USCG
relating to allowances for vessel anchors in certain portions of the
Lease Areas. BOEM may require mitigation measures in a COP once the
Lessee's site-specific navigational safety risk assessment is available
to inform BOEM's decision-
[[Page 64100]]
making. The final PAC-PARS and the review of vessel anchorage
regulatory standards may result in additional navigational mitigation
measures at the COP review stage.
ii. Measures for Vessel Transit: The information currently
available does not indicate that vessel routing mitigation measures are
warranted in the Lease Areas at lease execution and the Draft PAC-PARS
study recommends fairways that avoid the Lease Areas entirely. However,
at the COP stage BOEM may nonetheless consider designating portions of
the Lease Areas as areas of no surface occupancy to facilitate vessel
transit and continuance of existing uses.
b. Potential Future Restrictions to Mitigate Potential Conflicts
with Department of Defense Activities: In 2018, DoD reviewed the
Humboldt and Morro Bay Call Areas (83 FR 53096) in support of BOEM's
efforts to deconflict potential wind energy development in the areas in
northern and central California, respectively. DoD provided its
assessment of the California Offshore Planning Areas, and the 2018 DoD
assessment indicated that its mission activities along most of the
central coast, including the Morro Bay Call Area, are incompatible with
wind energy development. DoD determined that the Humboldt Call Area,
located off the coast of northern California, was DoD-mission
compatible, with site-specific stipulations.
On May 25, 2021, the Departments of the Interior and Defense and
the State of California announced an agreement to accelerate wind
energy offshore the central and northern coasts of California. The
Department of the Interior, in cooperation with DoD and the State of
California, identified the Morro Bay 399 Area that could support
approximately three gigawatts of offshore wind on roughly 399 square
miles off California's central coast, northwest of Morro Bay. The
announcement also acknowledged the critical nature of current and
future military testing, training, and operations in the central coast
and noted the parties' commitment to ensuring long-term protection of
military testing, training, and operations in the area while pursuing
new domestic clean energy resources. This announcement came after years
of collaboration between the Departments of the Interior and Defense to
find areas offshore the central coast of California that are compatible
with DoD's training and testing operations. The Lease Areas offshore
Morro Bay are all located within the Morro Bay 399 Area and have been
determined by DoD to be suitable for development, with site-specific
stipulations.
Prospective bidders should be aware that site specific terms and
conditions of any COP approval, such as curtailment protocol, will be
required by DoD. Any such terms and conditions will result from
consultation with DoD on development within the Lease Areas. For
example, DoD will likely require a curtailment protocol with the Lessee
to avoid conflicts with electromagnetically sensitive activities
conducted in the area, including those associated with the Point Mugu
Sea Range, Vandenberg Space Force Base, and North American Aerospace
Defense Command (NORAD). DoD has indicated to BOEM that curtailment
will be temporary and limited to instances where it is necessary to
avoid conflicts with national security or defense requirements.
BOEM will coordinate with DoD and the Lessee to deconflict these
potential impacts throughout the project review stage. Mitigation
measures or terms and conditions of a plan approval may result from
this coordination effort.
Potential bidders should be aware that there may be national
security considerations associated with any request by DoD for
curtailment and any curtailment resulting therefrom. Future Lessees
will not be allowed to disclose any such request or any curtailment
resulting therefrom without the prior consent of DoD. DoD has stated
that consent to disclose to a business entity with a need to know and
with which a non-disclosure agreement is in place will not be
unreasonably withheld.
The DoD is exploring potential national security threats from
deployment of Distributed Optical Fiber Sensing (DOFS) technology
associated with offshore energy projects. BOEM retains the right to
unilaterally require a Lessee to implement mitigation measures
necessary to safeguard against these potential threats to national
security and military operations, as identified by the DoD.
VIII. Lease Terms and Conditions
BOEM has included terms and conditions 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 and COP. The leases are
available on BOEM's website at: https://www.boem.gov/renewable-energy/state-activities/california. Each lease would include the following
attachments:
1. Addendum A (``Description of Leased Area and Lease
Activities'');
2. Addendum B (``Lease Term and Financial Schedule'');
3. Addendum C (``Lease-Specific Terms, Conditions, and
Stipulations'');
4. Addendum D (``Project Easement''); and
5. Addendum E (``Rent Schedule'').
Addenda A, B, and C provide detailed descriptions of lease terms
and conditions. Addenda D and E will be completed at the time of COP
approval or approval with modifications, should a COP be approved.
a. Required Plans for Potential Development of Executed Leases:
Under 30 CFR 585.601, if site assessment activities will be conducted,
the Lessee will be required to submit a SAP within 12 months of lease
issuance. Approval of the SAP will initiate the Lessee's five-year site
assessment term. If the Lessee intends to continue its commercial lease
with an operations term, the Lessee will be required to submit a COP at
least six 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 are more 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 would be due within 45 calendar days
after the Lessee receives the lease copies from BOEM for execution. For
example, for a 69,031-acre lease (the size of OCS-P 0562), the rent
payment will be $207,093 per year until commercial operations begin.
Thereafter, until commercial operations begin, annual rent payments
would be due on the anniversary of the effective date of the lease (the
``Lease Anniversary''). Once commercial operations under the lease
begin, BOEM will charge rent only for the portions of the Lease Area
remaining undeveloped (i.e., non-generating acreage).
If the Lessee submits an application for relinquishment of a
portion of its leased area within the first 45 calendar days after
receiving the lease copies from BOEM and BOEM approves that
application, no rent payment 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. A lease issued under this part
confers on the Lessee the right to one or more project easements,
without further competition, for the purpose of installing gathering,
[[Page 64101]]
transmission, and distribution cables, pipelines, and appurtenances on
the OCS as necessary for the full enjoyment of the lease. A Lessee must
apply for the project easement as part of the COP or SAP, as provided
under subpart F of 30 CFR part 585.
The Lessee 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, with the
first rent payment due when the operations term begins, as outlined in
30 CFR 585.500(a)(5) and 585.507(b). Annual rent for a project easement
is $5 per acre, subject to a minimum of $450 per year.
b. Operating Fee: For purposes of calculating the initial annual
operating fee payment under 30 CFR 585.506, BOEM applies an operating
fee rate to a proxy for the wholesale market value of the electricity
expected to be generated from the project during its first 12 months of
operations. This initial payment would be prorated to reflect the
period between the commencement of commercial operations and the Lease
Anniversary. The initial annual operating fee payment would be due
within 45 days after commencement of commercial operations. Thereafter,
subsequent annual operating fee payments would be 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 976-megawatt (MW)
wind facility operating at a 40 percent capacity (i.e., capacity factor
of 0.4) with a regional wholesale power price of $40 per megawatt hour
(MWh) and an operating fee rate of 0.02 will be calculated as follows:
[GRAPHIC] [TIFF OMITTED] TN21OC22.001
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 ONRR as an annual operating fee. For the Lease Areas,
BOEM will set the fee rate at 0.02 (i.e., 2 percent) for the entire
life of commercial operations.
ii. Nameplate Capacity: Nameplate capacity is the maximum rated
electric output, expressed in MW, that the turbines of the wind
facility under commercial operations can produce at their rated wind
speed, as designated by the turbine's manufacturer. The 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
would be 1,200 MW.
iii. Capacity Factor: The capacity factor relates to the amount of
energy delivered to the grid during a period of time compared to the
amount of energy the wind facility would have produced at full capacity
during that same period of time. This factor is represented as a
decimal between zero (0) and one (1). There are several reasons why the
amount of power delivered is less than the theoretical 100 percent of
capacity. For a wind facility, the capacity factor is mostly determined
by the availability of wind. Transmission line loss and downtime for
maintenance or other purposes also affect the capacity factor.
BOEM will set the capacity factor at 0.4 (i.e., 40 percent) for the
year in which the commercial operation date occurs and for the first
six full years of commercial operations on the lease. At the end of the
sixth year, BOEM may adjust the capacity factor to reflect the
performance over the previous five years based upon the actual metered
electricity generation at the delivery point to the electrical grid.
BOEM may make similar adjustments to the capacity factor once every
five years thereafter.
iv. Wholesale Power Price Index: Under 30 CFR 585.506(c)(2)(i), the
wholesale power price, expressed in dollars per MWh, is determined at
the time each annual operating fee payment is due. For the leases
offered in this sale, BOEM will use the annual average of the
California Independent System Operator (California ISO) North of Path
15 (NP15) market hub price. The Lessee may also use aggregated data
from commercial subscription services, such as S&P Global Market
Intelligence Platform or Hitachi ABB Velocity Suite and this may be
posted by BOEM for reference.
c. Financial Assurance: Within 10 business days after receiving the
lease copies for execution and pursuant to 30 CFR 585.515-585.516, each
provisional winner must provide an initial lease-specific bond or other
BOEM-approved financial assurance instrument in the amount of $100,000.
The provisional winners may meet financial assurance requirements by
posting a surety bond or financial assurance instrument or alternative
detailed in 30 CFR 585.526-585.529. BOEM encourages the provisionally
winning bidders to discuss the financial assurance instrument
requirements 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.
d. Payments: The annual lease payments and financial assurance
requirements described above can be found in Addendum ``B'' of the
leases, which BOEM has made available with this notice on its website
at: https: https://www.boem.gov/renewable-energy/state-activities/california.
X. Bidder's Financial Form
Each bidder must fill out the BFF referenced in this FSN. A copy of
the form is available at: https://www.boem.gov/renewable-energy/state-activities/california. Bidders seeking to use the bidding credits must
mark the appropriate box(es) on their BFF and submit a conceptual
strategy(ies) with their BFF as described in the BFF Addendum. Bidders
are encouraged to carefully read the BFF and BFF Addendum. Bidders who
do not elect to attempt to qualify for a bidding credit should mark the
box on their BFF next to the paragraph declining the bidding credits.
If the bidder does not select bid credits on the BFF or does not submit
[[Page 64102]]
conceptual strategy(ies), then BOEM will assume that the bidder has no
interest in a bidding credit. BOEM must receive each BFF and conceptual
strategy(ies), as appropriate, no later than November 4, 2022. If a
bidder does not submit a BFF for this sale by the deadline, BOEM, in
its sole discretion, may grant an extension to that bidder only if BOEM
determines the bidder's failure to timely submit a BFF was caused by
events beyond the bidder's control.
BFFs submitted by bidders for previous lease sales will not satisfy
the requirements of this auction. For the PACW-1, BOEM will accept
bidder's BFFs and conceptual strategies electronically or by mail.
Instructions for submission can be found in 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. Winning
bidders committing to the bidding credit(s) must meet the bidding
credit requirements no later than submission of their first Facility
Design Report (FDR).
XI. Bid Deposit
A bid deposit is an advance cash payment submitted to BOEM to
participate in the auction. ONRR will notify the bidders that they have
access to the Bid Deposit Form in pay.gov, and bidders must use the Bid
Deposit Form on the pay.gov website to leave a deposit. Bidders may
need to create an account in pay.gov to access the Bid Deposit Form and
leave a deposit. Each bidder must submit a bid deposit of $5,000,000 no
later than November 21, 2022, to be eligible to bid for one lease area.
Any bidder who fails to submit the bid deposit by this deadline may be
disqualified from participating in the auction. BOEM will consider
extensions to this deadline only if BOEM, in its sole discretion,
determines that the failure to timely submit the bid deposit was caused
by events beyond the bidder's control.
Following the auction, bid deposits will be applied against bonus
bids. Once BOEM has announced the provisional winners, BOEM will refund
bid deposits to the other bidders.
If BOEM offers a lease to a provisionally winning bidder and that
bidder fails to timely return the signed lease form, establish
financial assurance, or pay the balance of its bid, BOEM may retain the
bidder's $5,000,000 bid deposit. In such a circumstance, BOEM may
determine which bid would have won in the absence of the bid previously
determined to be the winning bid and may offer a lease pursuant to this
next highest bid if the Lessee that provided it has not won one of the
other Lease Areas.
XII. Minimum Bid
The minimum bid is the lowest bid BOEM will accept as a winning
bid, and it is where BOEM will start the bidding in the auction. BOEM
has established a minimum bid of $100.00 per acre for this lease sale.
See table in section XIII.e below for total minimum bids for each lease
to be offered in these sales.
XIII. Auction Procedures
Multiple-Factor Bidding Auction: As authorized under 30 CFR
585.220(a)(4) and 585.221(a)(6), BOEM will use a multiple-factor
bidding auction for this lease sale. The bidding system for this lease
sale will be a multiple-factor combination of a monetary bid and a non-
monetary factor. BOEM will grant bidding credits to potential bidders
for commitments to:
(1) support workforce training programs for the floating offshore
wind industry and/or develop a U.S. domestic supply chain for the
floating offshore wind industry;
(2) establish a Lease Area Use CBA with one or more communities,
stakeholder groups, or Tribal entities whose use of the geographic
space of the Lease Area, or whose use of resources harvested from that
geographic space, is expected to be impacted by the Lessee's potential
offshore wind development, and
(3) establish a General CBA with one or more communities, Tribes,
or stakeholder groups that are expected to be affected by the potential
impacts on the marine, coastal, and/or human environment (such as
impacts on visual or cultural resources) from activities resulting from
lease development that are not otherwise addressed by the Lease Area
Use CBA.
This auction format was selected to:
(1) enhance, through training, the floating offshore wind workforce
and enhance the establishment of a domestic supply chain for floating
offshore wind manufacturing, assembly, or services, and that is
designed to lead to expeditious and orderly development of offshore
wind resources on the OCS;
(2) support the expeditious and orderly development of OCS
resources by mitigating potential direct impacts from proposed projects
and encouraging the investment in infrastructure germane to the
offshore wind industry; and
(3) advance the purposes of OCSLA by facilitating the coexistence
of multiple ocean uses on the OCS, promoting meaningful comment and
participation in the leasing and plan review process, and mitigating
potential economic impacts on communities impacted by potential
offshore wind development.
BOEM will appoint a panel to review the non-monetary component
after the BFFs and bid deposits have been received but before the
auction, and the panel will verify the results of the lease sale.
Following review of the strategy to support workforce training programs
for the floating offshore wind industry; development of a U.S. domestic
supply chain for the floating offshore wind energy industry; either
CBA; or a combination thereof, BOEM will notify bidders if they qualify
for the credit prior to the mock auction. BOEM reserves the right to
change the composition of this panel at any time. The bid made by a
particular bidder in each round will represent the sum of a monetary
(cash) amount and a non-monetary factor (bidding credit). The structure
of this bidding credit is explained in the subsection below.
A bidder will be eligible to elect to qualify for one or more of
the bidding credits. A bidder may target either workforce training,
supply chain development, or a combination thereof for a 20 percent
credit. The Lease Area Use CBA bidding credit will be worth 5 percent
of the cash bid. The General CBA bidding credit will be worth 5 percent
of the cash bid. If a bidder qualifies for all three bidding credits,
the credits will be additive, for a total potential credit of a maximum
30 percent of the cash bid. Bidders are encouraged to review the BFF
Addendum if they are interested in qualifying for these bidding
credits.
a. Bidding credit calculation: BOEM provides the following example.
For a cumulative 30 percent of cash bid bidding credit with a $50
million Asking Price, the bidding credit will be calculated (subject to
rounding) as follows:
[[Page 64103]]
[GRAPHIC] [TIFF OMITTED] TN21OC22.002
Only the 20 percent workforce training and/or supply chain
development credit will require an explicit financial commitment.
Bidders seeking a CBA credit will retain the flexibility to determine
the optimal benefits (both monetary and non-monetary) on which the
parties can agree. Thus, per the example above, the required financial
commitment for the workforce training and/or supply chain development
credit is calculated as 20 percent of the cash bid. It will be
calculated as follows:
Commitment = Cash Bid * Workforce Training Supply Chain Credit% =
$38,461,538 * 20% = $7,692,308
Though no specific financial commitment is required, the value of
the credit for the two CBAs are similarly calculated, but for 5 percent
of the cash bid.
BOEM has prepared a table demonstrating the credit value
calculations if a $50 million Asking Price is paid for in part with
various bidding credits. Any financial commitment is calculated solely
from the value of the 20 percent workforce training and/or supply chain
development bidding credit, with no financial commitment required for a
CBA credit. The same calculations of cash bids and credits are
applicable to exit bids, as well as to live bids. Note that, in the
monetary auction, all fractional dollar amounts will be subject to
rounding to the nearest dollar.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Workforce
training/ Lease area use General CBA
Bidding credits qualified for Asking price Cash bid Percent credit Credit value supply chain CBA credit credit (5%)
credit (20%) (5%)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Workforce Training/Supply Chain $50 million......... $38,461,538 30 $11,538,462 $7,692,308 $1,923,077 $1,923,077
Development; and Lease Area Use
CBA and General CBA.
Workforce Training/Supply Chain $50 million......... 40,000,000 25 10,000,000 8,000,000 2,000,000 N/A
Development; and Lease Area Use
CBA.
Workforce Training/Supply Chain $50 million......... 40,000,000 25 10,000,000 8,000,000 N/A 2,000,000
Development; and General CBA.
Workforce Training/Supply Chain $50 million......... 41,666,667 20 8,333,333 8,333,333 N/A N/A
Development only.
Both CBA Credits only............. $50 million......... 45,454,545 10 4,545,455 N/A 2,272,727 2,272,727
Lease Area Use CBA Credit only.... $50 million......... 47,619,048 5 2,380,952 N/A 2,380,952 N/A
General CBA Credit only........... $50 million......... 47,619,048 5 2,380,952 N/A .............. 2,380,952
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Cash bid and credit values are rounded to the nearest dollar in the Power Auctions software. BOEM will then use those values to calculate the
credit values and will also round to the nearest dollar.
b. 20 Percent Non-Monetary (Bidding) Credit for Workforce Training
or Supply Chain Development or a Combination of Both: This type of
bidding credit allows a bidder to receive a credit of 20 percent of its
cash bid in exchange for committing to make a qualifying monetary
contribution (``Contribution'') to programs or initiatives, as
described in the BFF Addendum and lease. The workforce training
programs must support the floating offshore wind industry, development
of a U.S. domestic supply chain for the floating offshore wind energy
industry, or both. To qualify for this credit, the winning bidder is
required to financially contribute the value of this bidding credit
toward a workforce training program or the development of a domestic
supply chain, as described in the BFF Addendum and lease.
i. The Contribution to workforce training must result in a better
trained and/or larger domestic floating offshore wind workforce that
would provide for more efficient operations via increasing the supply
of fully trained personnel.
ii. The Contribution to domestic supply chain development must
result in (i) overall benefits to the U.S. floating offshore wind
supply chain available to all potential purchasers of offshore wind
services, components, or subassemblies, not solely the Lessee's
project; (ii) either the demonstrable development of new domestic
capacity (including vessels) or the demonstrable buildout of existing
capacity; or (iii) a more robust floating offshore wind domestic supply
chain by reducing the upfront capital or certification cost for
manufacturing offshore wind components, including the building of
facilities, the purchasing of capital equipment, and the certifying of
existing manufacturing or assembly facilities.
iii. No portion of the Contribution may also be used to meet the
requirements of any other bidding credits for which the Lessee
qualifies.
iv. Bidders seeking to use the bidding credit under this provision
can choose to commit to workforce training programs, domestic supply
chain initiatives, or a combination of both. The strategy must describe
the verifiable actions to be taken by the Lessee that would allow BOEM
to confirm compliance when the documentation for satisfying the bidding
credit is submitted. The Contribution must be made no later than the
time of the submission of the Lessee's first FDR. Lessees must provide
documentation showing that the Lessee has made the Contribution and
complied with the applicable requirements no later than the submission
of the first FDR for the Lease. Deferring the payment until no later
than the FDR will enable the Lessee to identify programs or recipients
with the greatest potential to expedite or facilitate orderly OCS
renewable energy development.
v. Contributions to workforce training must be to one or more of
the following: (i) Contributions toward union apprenticeships, labor
management training partnerships, stipends for workforce training, or
other technical training programs or institutions focused on providing
skills necessary for the planning, design, construction,
[[Page 64104]]
operation, maintenance, or decommissioning of floating offshore wind
energy projects in the United States; (ii) Contributions toward
maritime training necessary for the crewing of vessels to be used for
the construction, servicing, and/or decommissioning of floating
offshore wind energy projects in the United States; (iii) Contributions
toward training workers in skills or techniques necessary to
manufacture or assemble floating offshore wind components,
subcomponents, or subassemblies. Examples of these skills and
techniques include those in the areas of welding; floating offshore
wind energy technology; hydraulic maintenance; braking systems;
mechanical systems, including blade inspection and maintenance; or
computers and programmable logic control systems; (iv) Contributions
toward Tribal workforce development programs or training for employees
of wholly owned Tribal corporations that lead to the expeditious and
orderly development of floating offshore wind; or (v) Contributions
toward training in any other job skills that the Lessee can demonstrate
are necessary for the planning, design, construction, operation,
maintenance, or decommissioning of floating offshore wind energy
projects in the United States.
vi. Contributions to domestic supply chain development must be one
or more of the following: (i) Contributions supporting the development
of a domestic supply chain for the floating offshore wind industry,
including manufacturing of components and sub-assemblies and the
expansion of related services; (ii) Contributions to domestic Tier 2
and Tier 3 floating offshore wind component suppliers, such as mooring
line manufacturers, and domestic Tier 1 supply chain efforts, including
quay-side fabrication of floating foundations and assembly of the
floating tower, as defined in the Lease and BFF Addendum; (iii)
Contributions for technical assistance grants to help U.S.
manufacturers re-tool or certify (e.g., ISO-9001) for floating offshore
wind manufacturing; (iv) Contributions for the development of Jones
Act-compliant vessels for the construction, servicing, and/or
decommissioning of floating offshore wind energy projects in the United
States, including semi-submersible barges for use during quayside
manufacturing, assembly, or installation; (v) Contributions to the
purchase and installation of self-propelled modular transporter systems
(SPMTs), lift cranes capable of installing foundations, towers, and
nacelles quayside, and domestic mooring manufacturing facilities; (vi)
Contributions to port infrastructure related to floating offshore wind
component manufacturing and preparation of quayside manufacturing and
assembly areas for the construction and deployment of floating
foundations for, or other components of, offshore wind turbines; (vii)
Contributions to establish a new or existing bonding support reserve or
revolving fund available to all businesses providing goods and services
to floating offshore wind energy companies, including disadvantaged
businesses, and/or wholly owned Tribal corporations; or (viii) Other
Contributions to supply chain development efforts that the Lessee can
demonstrate further the manufacture of floating offshore wind
components or subassemblies, or the provision of floating offshore wind
services, in the United States.
vii. Documentation: If a lease is awarded pursuant to a winning bid
that includes a bidding credit for workforce training and/or supply
chain development, the Lessee must provide documentation to BOEM
showing that the Lessee has met the commitment no later than the
submission of the first FDR. The documentation must enable BOEM to
objectively verify the amount of the Contribution and the
beneficiary(ies) of the Contribution.
At a minimum, this documentation must include: all written
agreements between the Lessee and beneficiary(ies) of the Contribution,
which must detail the amount of the Contribution and how they will be
used by the beneficiaries of the Contribution in order to satisfy the
goals of the bidding credit for which the Contribution was made; all
receipts documenting the amount, date, financial institution, and the
account and owner of the account to which the Contribution was made;
and sworn statements by the entity that made the Contribution and the
beneficiary(ies) of the Contribution, attesting that all information
provided is true and accurate in the above documentation. The
documentation must describe how the funded initiative or program has
advanced, or is expected to advance, U.S. floating offshore wind
workforce training and/or supply chain development. The documentation
must also provide qualitative and/or quantitative information that
includes the estimated number of trainees or jobs supported, and/or the
estimated leveraged supply chain investment resulting or expected to
result from the Contribution. The documentation must contain and
elaborate on for the information specified in the conceptual strategy
submitted with the BFF and must allow BOEM to objectively verify (i)
the amount of the Contribution and the beneficiary(ies) of the
Contribution; and (ii) compliance with the bidding credit criteria
provided in Addendum ``C'' of the Lease. If the Lessee's implementation
strategy has changed from that in the conceptual strategy due to market
needs or other factors, the Lessee must explain the changed approach.
BOEM reserves the right to determine that the bidding credit has not
been satisfied if changes to the Lessee's conceptual strategy do not
meet the criteria for the bidding credit described in Addendum ``C'' of
the Lease or the BFF Addendum.
viii. Enforcement: The commitment for the bidding credit would be
made in the BFF and would be included in a lease addendum that would
bind the Lessee and all future assignees of the lease. If BOEM were to
determine that a Lessee or assignee had failed to satisfy the
requirements of the bidding credit, or if a Lessee were to relinquish
or otherwise fail to develop the lease by the tenth anniversary date of
lease issuance, the amount corresponding to the bidding credit awarded
would be immediately due and payable to ONRR with interest from the
date of lease execution. The interest rate would be the underpayment
interest rate identified by ONRR. BOEM could, at its sole discretion,
extend the documentation deadline beyond first FDR submission or the
10-year timeframe.
c. 5 Percent Non-Monetary (Bidding) Credit for a Lease Area Use
CBA: The second bidding credit will allow a bidder to receive a credit
of 5 percent of its cash bid in exchange for an existing CBA or a
commitment to enter into a new CBA with one or more communities,
stakeholder groups, or Tribal entities whose use of the geographic
space of the Lease Area, or whose use of resources harvested from that
geographic space, is expected to be impacted by the Lessee's potential
offshore wind development (hereinafter, in the context of the Lease
Area Use CBA bidding credit, referred to as ``impacted community'').
The Lease Area Use CBA may assist fishing and related industries
(including Tribal fisheries) by supporting their resilience and ability
to adapt to gear changes or any potential gear loss or damage, as well
as any loss of income, or other similar potential impacts that may
arise from the development of the Lease Area. The Lease Area Use CBA
may include payments into a special purpose fund, such as payments to
support gear changes, navigation technology
[[Page 64105]]
improvements, and other efforts to improve safety and navigation, or to
compensate the fishing and related industries whose use of the
geographic space of the Lease Area is impacted by the Lessee's
potential offshore wind development. To qualify for the credit, the
bidder will be required to commit to the requirements in the BFF
Addendum and the lease, and to submit a strategy as described in the
BFF Addendum. A bidder that is qualified to bid for a Lease Area and
would like to qualify for the Lease Area Use CBA credit may do so with
an executed CBA, even if future revisions to the CBA are necessary to
comply with the conceptual strategy described in the BFF Addendum.
However, in order to satisfy the requirements for this bidding credit,
such bidders must ensure compliance with the conceptual strategy by the
time the Lessee's first FDR is submitted.
i. Bidders seeking the bidding credit must submit their conceptual
strategy with their BFF, further described below and in the BFF
Addendum. The conceptual strategy must contain either a qualifying
executed Lease Area Use CBA or a conceptual strategy describing how the
bidder intends to qualify for the Lease Area Use CBA bidding credit,
which can be accomplished through the execution of a new CBA or
revising an already executed CBA. Bidders qualifying using a conceptual
strategy must: (i) Explain how the Lessee will select or identify
impacted communities with whom to enter into a Lease Area Use CBA; (ii)
Describe the provisions that may be included in the Lease Area Use CBA
and how the provisions mitigate potential impacts from the proposed
development of the Lease Area; and (iii) Describe the process for
documentation and verification that the Lease Area Use CBA has been
executed according to the requirements in the BFF Addendum and the
Lease. A Lessee will be required to provide documentation showing that
the Lessee has met the commitment and complied with the applicable
requirements no later than the submission of the Lessee's first FDR.
Deferring the fulfillment of the commitment until the first FDR will
enable the Lessee to identify stakeholders with impacts in need of
mitigation.
ii. A qualifying CBA must meet the following requirements: (i) Be
between the Lessee or its affiliated entity, or if appropriate, its
assignee(s), and an impacted community; (ii) Specify how the impacted
community's use of the Lease Area or how the impacted community's use
of resources harvested from the geographic space of the Lease Area is
expected to be impacted by the Lessee's potential offshore wind
development; (iii) Address impacts to the impacted community arising
from lease development; (iv) Specify any monetary, material, or other
benefits provided, or to be provided, by the Lessee to the impacted
community, including any mitigation or other compensatory measures
provided by the Lessee to the impacted community, such as the
establishment of any special purpose funds and the mechanisms through
which monies therein will be disbursed; (v) Indicate the commitment of
the parties to collaboration and resolution of issues. This commitment
may be indicated by a statement that the parties will agree to
mediation, a strategy for collaboration, or other type of plan
describing how the parties will collaborate or resolve issues as
needed; (vi) Describe communication methods, engagement methods, or
educational opportunities for the impacted community; and (vii) Specify
plans (or strategies) to mitigate potential impacts from the proposed
development of the Lease Area on the impacted community.
iii. No CBA otherwise eligible for a bidding credit may include
exclusivity or preferential clauses that prevent or disincentivize an
impacted community from entering into such agreements with other
lessees or potential lessees.
iv. No portion of a CBA, fund, or agreement used for this credit
may be used to meet the requirements of any other bidding credit for
which the Lessee qualifies.
v. Lessees may execute a Lease Area Use CBA with a single entity,
which may be a coalition that represents the diverse interests and
inclusive needs of more than one impacted community, or multiple
entities, or multiple impacted communities, and may execute more than
one Lease Area Use CBA.
vi. Any benefits provided to the impacted community should not
duplicate benefits or mitigation measures imposed on the Lessee
through, or pursuant to, statutes other than OCSLA.
vii. A bidder who receives this credit must use best efforts to
provide benefits at least commensurate to the value of the bidding
credit received. This may include both monetary and non-monetary
benefits.
viii. Documentation: If a lease is awarded pursuant to a winning
bid that includes this CBA credit, the Lessee must provide written
documentation to BOEM demonstrating execution of the CBA commitment no
later than submission of the Lessee's first FDR. The documentation must
enable BOEM to objectively verify the CBA has met all applicable
requirements as outlined in the BFF Addendum and Lease. At a minimum,
this documentation must include: all written agreements between the
Lessee and the impacted community, including the executed Lease Area
Use CBA; description of work done with impacted communities, including
the monetary and non-monetary commitments that reflect the value of the
bidding credit received; and sworn statements by the Lease Area Use CBA
signatories or their assignees, attesting to the truth and accuracy of
all the information provided in the above documentation. The
documentation must contain and elaborate on the information specified
in the conceptual strategy that was submitted with the BFF. If the
Lessee's conceptual strategy has changed due to market needs or other
factors, the Lessee must explain this change.
ix. Enforcement: The commitment for the Lease Area Use Bidding
Credit will be made in the BFF and will be included in a lease addendum
that binds the Lessee and all assignees of the lease. If BOEM were to
determine that a Lessee or assignee had failed to enter into a Lease
Area Use CBA that satisfies the commitment by the Lessee's first FDR
submission, or if a Lessee were to relinquish or otherwise fail to
develop the lease by the tenth anniversary date of lease issuance, the
amount corresponding to the bidding credit awarded will be immediately
due and payable to ONRR with interest from the date of lease execution.
The interest rate will be the underpayment interest rate identified by
ONRR. BOEM can, at its sole discretion, extend the documentation
deadline beyond the first FDR submission or the 10-year timeframe.
d. 5 Percent Non-Monetary (Bidding) Credit for a General CBA: The
third bidding credit will allow a bidder to receive a credit of 5
percent of its cash bid in exchange for an existing CBA or a commitment
to enter into a new CBA with one or more communities, Tribes, or
stakeholder groups that are expected to be affected by the potential
impacts on the marine, coastal, and/or human environment (such as
impacts on visual or cultural resources) from activities resulting from
lease development that are not otherwise addressed by the Lease Area
Use CBA (hereinafter, in the context of the General CBA bidding credit,
referred to as ``impacted community''). The General CBA credit is
designed mitigate effects from OCS energy development and promote that
development by enabling greater collaboration between lessees and the
impacted communities on which the development depends. To qualify for
[[Page 64106]]
the credit, the bidder must commit to the requirements in the BFF
Addendum and the lease, and submit a strategy as described in the BFF
Addendum. A bidder that is qualified to bid for a Lease Area and would
like to qualify for the General CBA credit may do so with an executed
CBA, even if future revisions to the CBA are necessary to comply with
the conceptual strategy described in the BFF Addendum. However, in
order to satisfy the requirements for this bidding credit, such bidders
must ensure compliance with the conceptual strategy by the time the
Lessee's first FDR is submitted.
i. Bidders seeking the bidding credit must submit their conceptual
strategy with their BFF, further described below and in the BFF
Addendum. The conceptual strategy must contain either a qualifying
executed General CBA or a conceptual strategy describing how the bidder
intends to qualify for the General CBA bidding credit, which can be
accomplished through the execution of a new CBA or revising an already
executed CBA. Bidders qualifying using a conceptual strategy must: (i)
Explain how the Lessee will identify impacted communities with whom to
enter into a General CBA; (ii) Describe the bidder's commitments,
including the form of investments, that will be made, subject to the
requirements and restrictions described above and in the BFF Addendum;
(iii) Describe the provisions that will be included in the General CBA
and how the provisions will address the potential impacts arising from
activities performed in connection with lease development; and (iv)
Describe the process for documentation and verification through which
the General CBA has been executed according to the requirements in the
BFF Addendum. A Lessee will be required to provide documentation
showing that the Lessee has met the commitment and complied with the
applicable requirements no later than the submission of the Lessee's
first FDR. Deferring the fulfillment of the commitment until the first
FDR will enable the Lessee to identify impacted communities likely
affected by the impacts on the marine, coastal, and/or human
environment from activities resulting from lease development.
ii. A qualifying CBA must meet the following requirements: (i) Be
between the Lessee or its affiliated entity, or, if appropriate, its
assignee(s), and an impacted community; (ii) Specify how the impacted
community is likely to be affected by the potential impacts on the
marine, coastal, and/or human environment from activities resulting
from lease development; (iii) Address impacts to the impacted community
arising from lease development that are not addressed by a Lease Area
Use CBA; (iv) Specify the monetary, material, or other benefits
provided, or to be provided, by the Lessee to the impacted community,
including any mitigation or other compensatory measures provided by the
Lessee to the impacted community; (v) Indicate commitment of parties to
collaboration and resolution of issues. This commitment may be
indicated by a statement that the parties will agree to mediation, a
strategy for collaboration, or other type of plan describing how the
parties will collaborate or resolve issues as needed; (vi) Describe
communication methods, engagement methods, or educational opportunities
for the impacted community; and (vii) Specify plans (or strategies) to
mitigate potential impacts from the proposed development of the Lease
Area on the impacted community.
iii. No General CBA otherwise eligible for a bidding credit may
include exclusivity or preferential clauses that prevent or
disincentivize an impacted community from entering into such agreements
with other lessees or potential lessees.
iv. No portion of a CBA, fund, or agreement used for this credit
may be used to meet the requirements of any other bidding credit for
which the Lessee qualifies.
v. Lessees may execute a General CBA with a single entity, which
may be a coalition that represents the diverse interests and inclusive
needs of more than one impacted community, or multiple entities, or
multiple impacted communities, and may execute more than one General
CBA.
vi. Any benefits provided to the impacted community should not
duplicate benefits or mitigation measures imposed on the Lessee
through, or pursuant to, statutes other than OCSLA. For example, such
benefits could include: (i) Contributions to a community benefit fund
whose purpose is to provide funds for infrastructure to impacted
communities to alleviate impacts from the Lessee's project; (ii)
Increased support to facilitate engagement in the process through which
the lease will be developed; and (iii) Mitigating potential impacts to
cultural viewsheds or potential impacts on marine and land species that
are of significance to Tribal culture or impacted communities.
vii. A bidder who receives this credit must use best efforts to
provide benefits at least commensurate to the value of the bidding
credit received. This may include both monetary and non-monetary
benefits.
viii. Documentation: If a lease is awarded pursuant to a winning
bid that includes this CBA credit, the Lessee must provide written
documentation to BOEM demonstrating execution of the CBA commitment no
later than submission of the Lessee's first FDR. The documentation must
enable BOEM to objectively verify the CBA has met all applicable
requirements as outlined in the BFF Addendum and lease. At a minimum,
this documentation must include: all written agreements between the
Lessee and beneficiary(ies), including the executed CBA; description of
work done with impacted communities to reach monetary and non-monetary
commitments that reflect the value of the bidding credit received; and
sworn statements by the CBA signatories or their assignees attesting to
the truth and accuracy of all the information provided in the above
documentation. The documentation must contain and elaborate on the
information specified in the conceptual strategy that was submitted
with the BFF. If the Lessee's conceptual strategy has changed due to
market needs or other factors, the Lessee must explain this change.
ix. Enforcement: The commitment for the General CBA Bidding Credit
will be made in the BFF and will be included in a lease addendum that
binds the Lessee and all assignees of the lease. If BOEM were to
determine that a Lessee or assignee had failed to enter into a General
CBA that satisfies the commitment by the Lessee's first FDR submission,
or if a Lessee were to relinquish or otherwise fail to develop the
lease by the tenth anniversary date of lease issuance, the amount
corresponding to the bidding credit awarded will be immediately due and
payable to ONRR with interest from the date of lease execution. The
interest rate will be the underpayment interest rate identified by
ONRR. BOEM can, at its sole discretion, extend the documentation
deadline beyond the first FDR submission or the 10-year timeframe.
e. The Auction: Using an online bidding system to host the auction,
BOEM will start the bidding for Leases OCS-P 0561 through 0565, as
described below. All five of the Lease Areas will be offered in a
single auction, and there will be no distinction made between Lease
Areas in the Humboldt WEA and the Morro Bay WEA within the auction
process. Each bidder may only bid for one of the offered Lease Areas at
a time and, ultimately, acquire only one of the Lease Areas in the
auction.
[[Page 64107]]
------------------------------------------------------------------------
Lease area ID Acres Minimum bid
------------------------------------------------------------------------
OCS-P 0561...................................... 63,338 $6,333,800
OCS-P 0562...................................... 69,031 6,903,100
OCS-P 0563...................................... 80,062 8,006,200
OCS-P 0564...................................... 80,418 8,041,800
OCS-P 0565...................................... 80,418 8,041,800
-----------------------
Total....................................... 373,268
------------------------------------------------------------------------
f. 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 that asking price for one of
the Lease Areas, it will indicate its intent by submitting a bid equal
to the asking price for the selected lease area. A bid at the full
asking price is referred to as a ``live bid.'' If the bidder has
qualified for a non-monetary credit, it will meet the asking price by
submitting a multiple-factor bid--that is, a live bid that consists of
a monetary (cash) element and a non-monetary credit (5%, 10%, 20%, 25%,
or 30% of the cash element, depending on the bidder's qualification for
bidding credits), the sum of which equals the asking price. Bidders
without a non-monetary credit will submit a cash bid equal to the
asking price. To participate in the next round of the auction, a bidder
is required to have submitted a live bid for one of the Lease Areas (or
have a carried-forward bid) in each previous round.
As long as there are two or more live bids (including carried-
forward bids) for at least one of the Lease Areas, the auction moves to
the next round. BOEM will raise the asking price for each Lease Area
that 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 it
deems appropriate. If there was only one live bid (including carried-
forward bids) or no live bids for a Lease Area in the previous round,
the asking price would not be increased.
A live bid would automatically be carried forward if it was
uncontested in the previous round (i.e., if it was the only live bid
for that Lease Area in the previous round), and the bidder who placed
the uncontested bid would not be permitted to place any other bid in
the current round of the auction.
Conversely, if a live bid was contested in the previous round
(i.e., if there was at least one other live bid for the same Lease
Area, including carried-forward bids), the bidder who placed the
contested bid would be free to bid on any Lease Area in the auction in
the next round, at the new asking price.
A bidder's eligibility is for either one or zero lease areas and
corresponds to the maximum number of lease areas that a bidder may
include in a live bid during a single round of the auction.
If a bidder decides to stop bidding before the final round of the
auction, there are circumstances in which the bidder could nonetheless
win a lease. For example, that bidder could be ultimately selected in
the winner determination that is described in detail below, or the
provisionally winning bidder could be disqualified at the award stage
of the auction. In these circumstances, the bidder will be bound by its
bid and thus obligated to pay the full bid amount. Bidders therefore
might be bound by any of their bids up to and until the point at which
the auction results are finalized.
Between rounds, BOEM will disclose to all bidders that submitted
bids: (1) the number of live bids (including carried-forward bids) for
each Lease Area in the previous round of the auction (i.e., the level
of demand at the asking price); and (2) the asking price for each Lease
Area in the upcoming round of the auction.
g. 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. 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 on a different Lease Area. During
the auction, the exit bid can be seen only by BOEM and not by other
bidders.
The auction ends when a round occurs in which each of the Lease
Areas in the auction receives one or zero live bids (including carried-
forward bids), regardless of the number of exit bids on any Lease Area.
h. Determination of Provisional Winners: After the bidding ends,
BOEM will determine the provisionally winning bid for each Lease Area
by the following two-stage procedure.
In stage one, 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 two.
In stage two, BOEM will consider bids from all bidding rounds for
Lease Areas that were not assigned in stage one made by bidders who
were not assigned a Lease Area in stage one. 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) must be 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 will be 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 use of pseudorandom numbers. The provisional
winners will pay the amounts of their provisionally winning bids, or
risk forfeiting their bid deposits. A provisional winner will be
disqualified if it is subsequently found to have violated auction rules
or BOEM regulations, or otherwise engaged in conduct detrimental to the
integrity of the competitive auction. If a bidder submits a bid that
BOEM determines to be a provisionally winning bid, the bidder must sign
the applicable lease documents, establish financial assurance, and
submit the cash balance (if any) of its bid (i.e., its winning cash bid
less its 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 a provisionally winning bidder if that bidder fails
to: timely return the signed lease form, establish adequate financial
assurance, pay the balance of its winning bid, or otherwise comply with
applicable regulations or the terms of the FSN. In that case, the
bidder would forfeit its bid deposit.
BOEM will publish the provisional winners and the provisionally
winning bid amounts shortly after the conclusion of the sale. Full bid
results, including round-by-round results of the entire sale, including
exit bids, will be published on BOEM's website after review of the
results and announcement of the provisional winners.
i. Additional Information Regarding the Auction Format:
i. Authorized Individuals and Bidder Authentication: A company that
is eligible to participate in the auction will identify on its BFF up
to three
[[Page 64108]]
individuals who would be 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 any auction system technical
supplement (ASTS) that may be issued.
The auction system will require software tokens for two-factor
authentication. To set up the tokens, authorized individuals will
download an app onto their smartphone or tablet with 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 required 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 deactivate that bidder's
tokens and login information.
ii. Timing of Auction: The auction will begin at 10:00 a.m. EST on
December 6, 2022. Bidders may log in as early as 9:30 a.m. EST on that
day. BOEM recommends that bidders log in earlier than 10:00 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 substantially 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 one to two business days, but may continue for additional
business days as necessary until the auction has concluded.
iii. Messaging service: BOEM and the auction contractors will use
the auction platform messaging service to keep bidders informed on
issues of interest during the auction. For example, BOEM may change the
schedule at any time, including during the auction. If BOEM changes the
schedule during an auction, it will use the messaging feature to notify
bidders that a revision has been made and will direct bidders to the
relevant page. BOEM will also use the messaging system for other
updates during the auction.
Bidders may place bids at any time during the round. At the top of
the bidding page, a countdown clock shows how much time remains in the
round. Bidders have until the end of the round to place bids. Bidders
should place bids according to the procedures described in this notice
and the Bidder Manual. 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.
BOEM may issue an ASTS to elaborate on the auction procedures
described in this FSN. In the event of any inconsistency between the
Bidder Manual, the ASTS, and the FSN, the FSN will be controlling.
iv. 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 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 needs to be submitted. BOEM may, in its sole discretion,
permit or refuse to accept a request for the placement of a bid using
this alternate telephonic bidding procedure.
j. 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 to reject any and all bids that do not
satisfy the requirements and rules of the auction, the FSN, or
applicable regulations and statutes.
b. Anti-Competitive Review
Bidding behavior in this sale is subject to Federal antitrust laws.
Following the auction, but before the acceptance of bids and the
issuance of the lease, BOEM will ``allow the Attorney General, in
consultation with the Federal Trade Commission, thirty days to review
the results of [the] lease sale.'' 43 U.S.C. 1337(c)(1). If a
provisionally winning bidder is found to have engaged in anti-
competitive behavior in connection with this lease sale, BOEM will
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;
3. An agreement among bidders not to bid against each other; or
4. Other agreements among bidders that have the potential to affect
the final auction price.
Pursuant to 43 U.S.C. 1337(c)(3), BOEM 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 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.
c. Process for Issuing the Lease
Once all post-auction reviews have been completed to BOEM's
satisfaction, BOEM will provide three unsigned copies of the lease to
each provisionally
[[Page 64109]]
winning bidder. Within 10 business days after receiving the lease
copies, the provisionally winning bidders must:
1. Sign and return the lease copies on the bidder's behalf;
2. File financial assurance, as required under 30 CFR 585.515-537;
and
3. Pay by electronic funds transfer (EFT) the balance (if any) of
the bonus bid (winning monetary bid less the applicable non-monetary
bidding credit and bid deposit). BOEM requires bidders to use EFT
procedures (not pay.gov, the website bidders used to submit bid
deposits) for payment of the balance of the bonus bid, following the
detailed instructions contained in the ``Instructions for Making
Electronic Payments'' available on BOEM's website at: https://www.boem.gov/renewable-energy/state-activities/eft-payment-instructions-ca.
BOEM will not execute the 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, in its sole discretion, that the provisionally winning
bidder's inability to comply with the deadline was caused by events
beyond the provisionally winning bidder's control pursuant to 30 CFR
585.224(e).
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 lease copies, each provisionally winning bidder will be
required to pay the first year's rent using the ``ONRR Renewable Energy
Initial Rental Payments'' form available at: https://www.pay.gov/public/form/start/27797604/.
Subsequent annual rent payments will be required to 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/california.
d. Non-Procurement Debarment and Suspension Regulations
Pursuant to 43 CFR part 42, subpart C, an OCS renewable energy
Lessee will be required to comply with the Department of the Interior's
non-procurement debarment and suspension regulations at 2 CFR parts 180
and 1400. The Lessee must also communicate this requirement to persons
with whom the Lessee does business relating to this lease by including
this requirement as a condition in their contracts and other
transactions.
e. Changes to Auction Details
The Regional Director of BOEM's Pacific Regional Office has the
discretion to change any auction detail specified in the FSN, including
the date and time, if s/he deems that events outside BOEM's control may
interfere with a fair and proper lease sale. Such events may include,
but are not limited to, natural disasters (e.g., earthquakes,
hurricanes, floods, and blizzards), wars, riots, act of terrorism,
fire, strikes, civil disorder, Federal Government shutdowns,
cyberattacks against relevant information systems, or other events of a
similar nature. In case of such events, BOEM would notify all qualified
bidders via email, phone, and BOEM's website at: https://www.boem.gov/renewable-energy/state-activities/california. Bidders should call (703)
787-1121 if they have concerns.
f. 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. If BOEM
exercises this right, it will refund bid deposits to winning bidders,
without interest, as provided in 30 CFR 585.224(f).
g. Appeals
The bid rejection procedures are provided in BOEM's regulations at
30 CFR 585.225 and 585.118(c). Under 30 CFR 585.225:
(a) If BOEM rejects your bid, BOEM will provide a written statement
of the reasons and will refund any money deposited with your bid,
without interest.
(b) You will then be able to ask the BOEM Director for
reconsideration, in writing, within 15 business days of bid rejection,
under 30 CFR 585.118(c)(1). The Director will send you a written
response either affirming or reversing the rejection.
The procedures for requesting reconsideration of a bid rejection
are described in 30 CFR 585.118(c).
h. Protection of Privileged or Confidential Information
BOEM will protect privileged or confidential information that the
Lessee submits, as authorized by the Freedom of Information Act (FOIA),
30 CFR 585.113, or other applicable statutes. If the Lessee wishes to
protect the confidentiality of information, the Lessee should clearly
mark it ``Contains Privileged or Confidential Information'' and
consider submitting such information as a separate attachment. BOEM
will not disclose such information, except as required by FOIA. If your
submission is requested under the FOIA, your information will only be
withheld if a determination is made that one of the FOIA's exemptions
to disclosure applies. Such a determination will be made in accordance
with the Department's FOIA regulations and applicable law. Labeling
information as privileged or confidential will alert BOEM to more
closely scrutinize whether it warrants withholding. Further, BOEM will
not treat as confidential aggregate summaries of otherwise
nonconfidential information.
XV. Compliance With the Inflation Reduction Act (Pub. L. 117-169 (Aug.
16, 2022)(Hereinafter, the ``IRA''):
Section 50265(b)(2) of the IRA provides that ``[d]uring the 10-year
period beginning on the date of enactment of this Act . . . the
Secretary may not issue a lease for offshore wind development under
section 8(p)(1)(C) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(p)(1)(C)) unless-- (A) an offshore lease sale has been held during
the 1-year period ending on the date of the issuance of the lease for
offshore wind development; and (B) the sum total of acres offered for
lease in offshore lease sales during the 1-year period ending on the
date of the issuance of the lease for offshore wind development is not
less than 60,000,000 acres.'' Section 50264(d) of the IRA provides that
``. . . not later than March 31, 2023, the Secretary shall conduct
Lease Sale 259[.]'' Conducting Lease Sale 259 is needed for BOEM to
satisfy the requirements in section 50265(b)(2) of the IRA and issue
the leases resulting from this lease sale. Notwithstanding the
foregoing, nothing in the IRA prevents BOEM from holding this auction.
[[Page 64110]]
Authority: 43 U.S.C. 1337(p); 30 CFR 585.211 and 585.216.
Amanda Lefton,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2022-22871 Filed 10-20-22; 8:45 am]
BILLING CODE 4310-MR-P