Final Sale Notice (FSN) for Commercial Leasing for Wind Power Development on the Outer Continental Shelf in the Gulf of Mexico (GOMW-1), 47173-47187 [2023-15501]

Agencies

• DEPARTMENT OF THE INTERIOR
• Bureau of Ocean Energy Management

[Federal Register Volume 88, Number 139 (Friday, July 21, 2023)]
[Notices]
[Pages 47173-47187]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-15501]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2023-0021]


Final Sale Notice (FSN) for Commercial Leasing for Wind Power 
Development on the Outer Continental Shelf in the Gulf of Mexico (GOMW-
1)

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Final sale notice.

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SUMMARY: This Final Sale Notice (FSN) contains information pertaining 
to the areas available for commercial wind energy leasing on the Outer 
Continental Shelf (OCS) in the Gulf of Mexico (GOM). Specifically, this 
FSN details certain provisions and conditions of the leases, auction 
details, the lease form, criteria for evaluating competing bids, and 
procedures for award, appeal, and lease execution. The Bureau of Ocean 
Energy Management (BOEM) will offer three leases for sale using a 
multiple-factor bidding auction format: Lease OCS-G 37334, Lease OCS-
G37335, and Lease OCS-G37336 (Lease Areas). The issuance of any lease 
resulting from this sale will not constitute approval of project-
specific plans to develop offshore wind energy. Such plans, if 
submitted by the Lessee, will be subject to environmental, technical, 
and public reviews prior to a BOEM decision on whether the proposed 
activity should be authorized.

DATES: BOEM will hold an online mock auction for potential bidders 
starting at 8:00 a.m. Central Daylight Time (CDT)/9:00 a.m. Eastern 
Daylight Time (EDT) on August 28, 2023. The monetary auction will be 
held online and will begin at 8:00 a.m. CDT/9:00 a.m. EDT on August 29, 
2023. Additional details are provided in the section entitled, 
``Deadlines and Milestones for Bidders.''

FOR FURTHER INFORMATION CONTACT: Bridgette Duplantis, Bureau of Ocean 
Energy Management, Office of Leasing and Plans, 1201 Elmwood Park 
Boulevard, New Orleans, Louisiana 70123, (504) 736-7502 or 
[email protected].

SUPPLEMENTARY INFORMATION:

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 June 11, 2021, BOEM published a Request for 
Interest (RFI) for commercial leasing for wind power development in the 
Gulf of Mexico OCS (88 FR 31339). The RFI Area comprised the entire 
Central Planning Area (CPA) and Western Planning Area (WPA) of the Gulf 
of Mexico, excluding the portions of those areas located in water 
depths greater than 1,300 meters. On November 1, 2021, BOEM published 
the Call for Information and Nominations (86 FR 60283) encompassing an 
area of almost 30 million acres just west of the Mississippi River to 
the Texas/Mexican border. On July 20, 2022, BOEM announced that it was 
seeking public comments on two draft Wind Energy Areas (WEAs) totaling 
7,364,668 acres offshore Galveston, Texas, and Lake Charles, Louisiana. 
In response to feedback collected, BOEM announced the Area 
Identification on October 31, 2022. BOEM published the Proposed Sale 
Notice (PSN) in the Federal Register (88 FR 11939) on February 22, 
2023. A 60-day comment period followed. BOEM requested any prospective 
bidders who wished to participate in the GOM lease sale to submit 
qualification materials postmarked no later than April 25, 2023. BOEM 
also hosted an auction seminar for prospective bidders on March 23, 
2023, to discuss the proposed auction format. BOEM received 330 comment 
submissions in response to the PSN, which are available on 
regulations.gov (Docket ID: BOEM-2023-0021) at: https://www.regulations.gov/document/BOEM-2023-0021-0001. 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/gulf-mexico-activities.
    In response to the comments received, BOEM made several changes to 
the GOMW-1 sale format and procedures from those proposed in the PSN 
and to the lease stipulations in the Proposed Leases. BOEM will offer 
all three lease areas during one multi-factor GOMW-1 auction. In each 
round of the auction, a bidder can bid for, at most, one of the offered 
leases at a time. A bidder may switch between different Lease Areas 
from round to round subject to the auction rules, but must bid in each 
round, and ultimately can acquire, at most, one lease in the auction.

II. List of Eligible Bidders

    BOEM has determined that the following 16 entities are legally, 
technically, and financially qualified to hold a commercial wind lease 
offshore the GOM, pursuant to 30 CFR 585.107 and 585.108, and therefore 
may participate in this lease sale as bidders subject to meeting the 
requirements

[[Page 47174]]

outlined in this notice. Those entities are listed below:

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                      Company name                          Company No.
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547 Energy LLC..........................................           15123
Avangrid Renewables, LLC................................           15019
Coastal Offshore Renewable Energy LLC...................           15173
energyRe Offshore Wind Holdings, LLC....................           15171
Equinor Wind US LLC.....................................           15058
Gulf Coast Offshore Wind LLC............................           15172
Gulf Wind Offshore LLC..................................           15178
Hanwha Offshore North America LLC.......................           15176
Hanwha Q CELLS USA Corp.................................           15156
Hecate Energy LLC.......................................           15166
Invenergy GOM Offshore Wind LLC.........................           15177
RWE Offshore US Gulf, LLC...............................           15169
Shell New Energies US LLC...............................           15140
TotalEnergies Renewables USA, LLC.......................           15136
US Mainstream Renewable Power, Inc......................           15089
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    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. An affiliate 
means a bidding entity who controls, is controlled by, or is under 
common control with another bidding entity. For the purpose of 
identifying affiliated entities, a bidding entity is any individual, 
firm, corporation, association, partnership, consortium, or joint 
venture (when established as a separate entity) that is participating 
in the same auction. BOEM considers bidding entities to be affiliated 
when:
    i. 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 bidding entity. Ownership of less than 10 percent 
of another bidding entity constitutes a presumption of non-control that 
BOEM may rebut.
    ii. 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 bidding entity, and BOEM determines that there is 
control upon consideration of factors including the following:
    a. The extent to which there are common officers or directors.
    b. 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 bidding 
entities, if a bidding entity is the greatest single owner, or if there 
is an opposing voting bloc of greater ownership.
    c. Shared ownership, operation, or day-to-day management of a 
lease, grant, or facility, as those terms are defined in BOEM's 
regulations at 30 CFR 585.113.
    iii. They are both direct, or indirect, subsidiaries of the same 
parent company.
    iv. With respect to any lease(s) offered in this auction, they have 
entered into an agreement prior to the auction regarding the shared 
ownership, operation, or day-to-day management of such lease.
    v. Other evidence indicates the existence of power to exercise 
control, such as evidence that one bidding entity has power to exercise 
control over the other, or that multiple bidders collectively have the 
power to exercise control over another bidding entity or entities.
    Affiliated entities are not permitted to compete against each other 
in the auction. Where two or more affiliated entities have qualified to 
bid in the auction, the affiliated entities must decide prior to the 
auction which one (if any) will participate in the auction. If two or 
more affiliated entities attempt to participate in the auction, BOEM 
will disqualify those 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 (a minimum of 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 submission must include the 
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 
August 6, 2023, 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/gulf-mexico-activities.
    For purposes of this auction, BOEM will not consider BFFs submitted 
for previous lease sales. The BFF must be executed on paper with a wet 
signature or with a digital signature affixed by an authorized 
representative listed on the bidder's current legal qualification card 
on file with BOEM, subject to 18 U.S.C. 1001 (Fraud and False 
Statements). Further information about the BFF can be found in the 
``Bidder's Financial Form'' section X of this notice.
    ii. Bid Deposit: Once BOEM has processed a BFF and provided the 
appropriate information to the Office of Natural Resources Revenue 
(ONRR), ONRR will populate the Bid Deposit Forms and notify the bidders 
of access to pay.gov for the bid deposits. The bidder must log into 
https://www.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 $2,000,000 no later than August 13, 2023. BOEM will 
grant 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

[[Page 47175]]

deposits can be found in the ``Bid Deposit'' section XI of this notice. 
In accordance with 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 the 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 GOM Regional Office. The forms can be submitted digitally to 
[email protected] or mailed to the BOEM GOM Regional Office. 
This certification is required by 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 GOM Regional Office 
prior to the execution of any lease contract.
    ii. Mock Auction: BOEM will hold a Mock Auction on August 28, 2023, 
beginning at 8:00 a.m. CDT/9:00 a.m. EDT. 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 August 29, 2023, BOEM, through its 
contractor, will commence the multiple-factor auction. The first round 
of the auction will start at 8:00 a.m. CDT/9:00 a.m. EDT. 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 (which will be communicated to bidders during the 
auction). BOEM anticipates that the auction will last one or two 
business days, but the auction may continue for additional 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 cash bid 
minus 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 criteria 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; 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.
    The three Lease Areas included in this FSN are the same size and 
orientation described in the PSN. BOEM's designation of the three Lease 
Areas offered in the FSN is informed by extensive coordination with 
BOEM's intergovernmental task force members, consultation and 
engagement with Tribes, stakeholder engagement, a partnership with 
NOAA's National Centers for Coastal Ocean Science (NCCOS) to utilize 
spatial modeling to inform the identification of Wind Energy Areas, and 
consideration of the 330 comments that BOEM received in response to the 
PSN. BOEM is offering three Lease Areas totaling 301,746 acres for sale 
through this notice (Figure 1).

[[Page 47176]]

[GRAPHIC] [TIFF OMITTED] TN21JY23.002

Figure 1: GOMW-1 Map of Final Lease Areas

    The areas available for lease will be auctioned in a single auction 
as listed in Table 1.

                    Table 1--GOMW-1 Final Lease Areas
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          Lease area name             Lease area ID          Acres
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Lake Charles......................        OCS-G 37334            102,480
Galveston I.......................        OCS-G 37335            102,480
Galveston II......................        OCS-G 37336             96,786
                                   -------------------------------------
    Total.........................  .................            301,746
------------------------------------------------------------------------

    Due to United States Coast Guard (USCG) concerns about lightering 
areas in the southern portion of the Galveston WEA (Option I), BOEM 
will continue to work with USCG to identify, quantify, and mitigate 
potential impacts and risks to lightering operations within the 
traditional lightering use areas within Galveston leases when 
considering any plans submitted for BOEM's consideration and approval 
after lease issuance.
    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/gulf-mexico-activities.

V. Environmental Review

    On January 11, 2021, BOEM published a notice of intent to prepare 
an environmental assessment (EA) to consider potential environmental 
consequences of site characterization activities (e.g., biological, 
archaeological, geological, and geophysical surveys and core samples) 
and site assessment activities (e.g., installation of meteorological 
buoys) that are expected to take place after issuance of wind energy 
leases in the Call Area. As part of the scoping process for the EA, 
BOEM sought comments on the issues and alternatives that should inform 
the EA. BOEM received 18 comments, which can be found at https://www.regulations.gov under Docket No. BOEM-2021-0092. In addition to the 
preparation of the Draft EA, BOEM has completed consultations under the 
Endangered Species Act (ESA), the Magnuson-Stevens Fishery Conservation 
and Management Act (MSFCMA), and the Coastal Zone Management Act 
(CZMA). On July 20, 2022, BOEM issued a press release soliciting 
comments on the Draft EA, with a 30-day comment period, but, in 
response to several requests, BOEM extended the comment period to 45 
days. During this time, BOEM held two public meetings, one on August 9, 
2022, and one on August 11, 2022. BOEM published the Final EA and 
Finding of No Significant Impact (FONSI) on May 26, 2023. They can be 
found at https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities. BOEM will conduct additional environmental reviews 
upon receipt of a Lessee's

[[Page 47177]]

Construction and Operations Plan (COP) if the proposed leases reach 
that stage of development.

VI. New and Modified Lease Stipulations

    Based on feedback received on the PSN, BOEM is adding lease 
stipulations that: (i) were discussed conceptually in the PSN, and (ii) 
include conditions from the Department of Defense (DoD) to protect 
national defense capabilities and military operations. BOEM is also 
refining certain 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 require working 
with BOEM 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; mariners and the 
maritime industry; ocean users; submarine cable operators; and 
underserved communities, as defined in section 2 of E.O. 13985. The 
report must 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 for Lessees to coordinate their 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 E.O. 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 include an update on activities executed under any survey plan.
    b. Commercial Fisheries: BOEM is including a stipulation that would 
contain components of stipulations included in prior commercial leases 
issued by BOEM, including a requirement for a Fisheries Communications 
Plan (FCP).
    c. Protected Species: The Lessee must coordinate with BOEM, the 
National Marine Fisheries Service (NMFS), and the U.S. Fish and 
Wildlife Service (USFWS) prior to designing and conducting biological 
surveys intended to support offshore renewable energy plans that could 
interact with protected species.
    BOEM has completed a consultation with NMFS and USFWS under section 
7(a)(2) of the ESA for Gulf of Mexico wind energy lease issuance and 
associated site characterization and site assessment activities that 
may occur following lease issuance. NMFS and USFWS have issued letters 
of concurrence in response to BOEM's requests for informal programmatic 
consultation (https://www.boem.gov/renewable-energy/state-activities/esanmfssero and https://www.boem.gov/renewable-energy/state-activities/boem-gomr-ren-leasing-esausfws-concurrence). Best management practices 
(collectively referred to as protocols) associated with the mitigation, 
monitoring, and reporting conditions resulting from these ESA 
consultations have been developed for those data collection activities 
covered in the consultations. These protocols will become provisions of 
all leases: https://www.boem.gov/regions/gulf-mexico-ocs-region/renewable-energy-esa-consultations-guidance.
    d. Marine Mammal Protection Act Authorization(s): If the Lessee is 
required to obtain an authorization pursuant to section 101(a)(5) of 
the Marine Mammal Protection Act prior to conducting survey activities 
in support of plan submittal, the Lessee must provide to BOEM a copy of 
the authorization prior to commencing these activities.
    e. Project Labor Agreements (PLAs) and Supply Chain: BOEM is 
committed to workforce safety and the establishment of a durable 
domestic supply chain that can sustain the U.S. offshore wind energy 
industry, including for the leases offered in this sale. To advance 
these goals, BOEM is including two lease stipulations, one that 
encourages construction efficiency for projects and one 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.
    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 
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 BOEM provides 
access retains the right to access the Lease Area for purposes of 
future research. This provision does not limit the Lessor's authority 
to access the lease for other purposes, including, but not limited to, 
inspections conducted pursuant to 30 CFR 285.822.
    g. Archaeological Survey Requirements: BOEM is including a 
modification of a lease stipulation that was used 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 will use 
to conduct archaeological surveys in support of plans (i.e., Site 
Assessment Plan (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, and 
the Lessee must work with BOEM to identify such Tribes. In the post-
review discovery clauses, the revised stipulation requires that, in the 
event of

[[Page 47178]]

an unanticipated discovery of a potential archaeological resource, the 
Lessee will immediately halt bottom-disturbing activities within the 
area of the discovery by a minimum of 305 meters (1,000 feet), and that 
the avoidance distance must be calculated from the maximum discernible 
extent of the archaeological resource.
    h. Foreign Interest: To protect national defense capabilities and 
military operations, BOEM is requiring the Lessee to provide to DoD 
specific information about the personnel allowed to access the wind 
turbine structures and associated data systems. That information 
includes the names of entities or persons having a direct ownership 
interest in an offshore wind facility, as well as any 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). In addition, the Lessee must resolve 
DoD's security concerns before it allows access to the site by foreign 
persons or representatives of foreign entities for which DoD has raised 
concerns and before the Lessee uses 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 5 U.S.C. 105; (6) a State of 
the United States; or (7) a political subdivision of States of the 
United States. BOEM is including a stipulation that requires any 
proposed Lessee that is a foreign-controlled business entity under the 
regulations at 31 CFR part 800 to provide joint notice, with BOEM, to 
CFIUS of the proposed leasing transaction, in accordance with 
applicable regulations at 31 CFR part 800, subpart D, and provide a 
copy of the notice to the DoD. In addition, approval of any assignment 
of lease interest to a foreign-controlled business entity under 31 CFR 
part 800 is subject to this CFIUS notice stipulation. Such leasing 
decisions or assignments would take place only after CFIUS provides 
notice that it has concluded all necessary reviews under section 721 of 
the Defense Production Act of 1950, as amended, with respect to the 
leasing decision or assignment.
    j. Transmission Planning: The Lessee must--to the extent that it is 
technically and economically practical or feasible--consider the use of 
cable corridors, regional transmission systems, meshed systems, or 
other mechanisms for transmission facilities proposed in a COP. Such 
consideration must be done in accordance with stipulation 3.1.1, which 
requires the Lessee to engage with Tribes and parties regarding 
transmission planning prior to proposing any export cable route. The 
foregoing does not prevent the Lessee from proposing the use of 
transmission systems traditionally constructed in a Project easement in 
any COP that the Lessee submits; nor does it prevent BOEM from 
requiring in a COP approval the use of cable corridors, regional 
transmission systems, meshed systems, or other mechanisms for 
transmission facilities, if deemed technically and economically 
practical or feasible by BOEM.

VII. Potential Future Restrictions

    a. Potential Future Restrictions To Ensure Navigational Safety:
    i. USCG Navigational Safety Measures: Potential bidders are advised 
that portions of the lease area may not be available for future 
development (i.e., installation of wind energy facilities) because of 
navigational safety concerns. The USCG recommended that BOEM add a 2-
nautical mile (3704 m) buffer around the shipping fairways in the GOM. 
BOEM may require additional mitigation measures at the COP stage when 
the Lessee's site-specific navigational safety risk assessment is 
available to inform BOEM's decision-making.
    ii. Vessel Transit Corridors: Members of the fishing community have 
requested that offshore wind energy facilities be designed in a manner 
that, among other things, provides for safe transit to fishing grounds 
where relevant. The information currently available does not indicate 
that transit corridors are warranted. 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: Potential bidders should be 
aware of potential conflicts with DoD's existing uses of the OCS. BOEM 
coordinates with DoD throughout the leasing process.
    i. Air Surveillance and Radar: The Military Aviation and 
Installation Assurance Siting Clearinghouse conducted a DoD assessment 
of the Call Area. That assessment concluded that the North American 
Aerospace Defense Command (NORAD) mission may be affected by the 
development of the Lease Area(s). Considering both the expected height 
of offshore turbines and future cumulative wind turbine effects, 
adverse impacts can be mitigated through the use of Radar Adverse-
impact Management (RAM) \1\ and overlapping radar coverage. For 
projects where RAM mitigation is acceptable, BOEM anticipates including 
the following stipulations in any project approval conditions:
---------------------------------------------------------------------------

    \1\ RAM is the technical process designed to minimize the 
adverse impact of obstruction interference on a radar system.
---------------------------------------------------------------------------

    (1) Lessee will notify NORAD when the project is within 30-60 days 
of completion and, again, when the project is complete and operational 
for RAM scheduling;
    (2) Lessee will contribute funds to DoD in the amount of no less 
than $80,000 toward the cost of DoD's execution of the RAM procedures 
for each Radar system affected; and
    (3) Lessee will curtail wind turbine operations for National 
Security or Defense Purposes, as described in the lease.
    BOEM will require the Lessee to enter into an agreement with the 
DoD to implement these conditions and mitigate any identified impacts. 
Sixth Generation Over the Horizon Radar is currently in development. 
Offshore wind turbines in the Gulf of Mexico may create adverse impacts 
to that system. BOEM will further coordinate with DoD and the Lessee to 
deconflict potential impacts throughout the project review stage, which 
may result in adding mitigation measures or terms and conditions as 
part of any plan approval.
    c. Potential Future Restrictions Within Significant Sediment 
Resource Areas: Potential bidders are advised that BOEM has designated 
certain lease blocks in the GOM as Significant OCS Sediment Resource 
Areas. OCS sediment resources are minerals that are composed of 
sediment deposits, including clay, silt, sand, gravel-sized

[[Page 47179]]

particles, and shells found on or below the surface of the OCS seabed. 
Where feasible, project design and construction should consider on-
lease access to sediment resources by other users.
    Regarding off-lease activities that may support a Lessee's 
operations (e.g., a right-of-use and easement or right-of-way), BOEM 
has implemented measures to prevent obstructions to the use of the most 
Significant OCS Sediment Resources, reduce multiple use conflicts, and 
minimize interference with oil and gas operations. For the most current 
listing of Significant OCS Sediment Resource blocks, see https://www.boem.gov/marine-minerals/managing-multiple-uses-gulf-mexico. If it 
is determined that significant OCS sediment resources may be impacted 
by a proposed activity, BOEM and/or BSEE may require the Lessee to 
undertake measures deemed economically, environmentally, and 
technically feasible to protect the resources to the maximum extent 
practicable. Such measures may include modification of operations and 
monitoring of infrastructure after installation.
    BSEE will not approve future requests for in-place decommissioning 
of any infrastructure in these designated areas, unless the BSEE GOM 
Regional Supervisor determines that the infrastructure does not 
constitute a hazard or obstruction to navigation and commercial fishing 
operations, unduly interfere with other uses of the OCS, or pose 
adverse environmental effects.
    d. Potential Future Restrictions for Deepwater Port Applications 
for Offshore Oil and Liquified Gas Facilities: Potential bidders are 
advised that the USCG and the Maritime Administration (MARAD) may 
process applications for the licensing of deepwater ports involving 
both proposed liquefied natural gas (LNG) importation/exportation 
facilities and oil importation/exportation facilities in the GOM. There 
is currently only one such active facility in the GOM: the Louisiana 
Offshore Oil Port, located 16 miles southeast of Port Fourchon. 
Applications for new deepwater port import and/or export facilities may 
be received by MARAD at any time. Those applications will be processed 
by MARAD and the USCG in the order they are received. A list of 
approved, pending, and withdrawn/disapproved DWP license applications 
may be found at the following web pages:

 https://www.maritime.dot.gov/ports/deepwater-ports-and-licensing/licensing-process
 https://www.maritime.dot.gov/ports/deepwater-ports-and-
licensing/approved-applications

    Bidders and Lessees also are advised to review and monitor U.S. DOT 
MARAD sources, such as MARAD records of decision and port licenses, for 
relevant deepwater port application information to assess safety zones, 
no anchoring zones, avoidance areas, recommended routes, and other 
ships' routing measures that could prevent or otherwise impact offshore 
wind operations around both existing and proposed deepwater port 
locations.
    For more information, contact:

Commandant (CG-OES-22), U.S. Coast Guard Headquarters, 2703 Martin 
Luther King Ave. SE (STOP 7509), Attn: Deepwater Ports Standards 
Division, Washington, DC 20593-7509, (202) 372-1444, POC: Mr. Matthew 
Layman, Email: [email protected] or [email protected], Web 
Address: https://www.dco.uscg.mil/Our-Organization/Assistant-Commandant-for-Prevention-Policy-CG-5P/Commercial-Regulations-standards-CG-5PS/Office-of-Operating-and-Environmental-Standards/vfos/DWP/
Ms. Yvette M. Fields, Director Maritime Administration, Office of 
Deepwater Ports and Offshore Activities, 1200 New Jersey Avenue SE, 
W21-309 (MAR-530), Washington, DC 20590, Telephone: (202) 366-0926, 
Fax: (202) 366-5123, Email: [email protected], Web Address: https://www.maritime.dot.gov/ports/deepwater-ports-and-licensing/approved-applications-and-operational-facilities

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/gulf-mexico-activities. Each lease will 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: To 
the extent required under 30 CFR part 585, the Lessee will submit a SAP 
within 12 months of lease issuance if the Lessee intends to conduct 
site assessment activities. 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 of 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 will be due within 45 calendar days 
after the Lessee receives the lease copies from BOEM for execution. For 
example, for the 102,480 acres Lease Area of OCS-G 37334, the rent 
payment will be $307,440 per year until commercial operations begin. 
Thereafter, until commercial operations begin, annual rent payments are 
due on the anniversary of the effective date of the lease (the ``Lease 
Anniversary''). Once commercial operations under the lease begin, BOEM 
will charge rent only for the portions of the Lease 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, 
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

[[Page 47180]]

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 will be prorated to reflect the period 
between the commencement of commercial operations and the Lease 
Anniversary. The initial annual operating fee payment is due within 45 
days after commencement of commercial operations. Thereafter, 
subsequent annual operating fee payments are due on or before the Lease 
Anniversary.
    The subsequent annual operating fee payments are calculated by 
multiplying the operating fee rate by the imputed wholesale market 
value of the projected annual electric power production. For the 
purposes of this calculation, the imputed market value is the product 
of the project's annual nameplate capacity, the total number of hours 
in the year (8,760), the capacity factor, and the annual average price 
of electricity derived from a regional wholesale power price index. For 
example, the annual operating fee for a 976-megawatt (MW) wind facility 
operating at a 30 percent capacity (i.e., capacity factor of 0.3) 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] TN21JY23.003

    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 0.3 (i.e., 30 percent) for the 
year in which the commercial operations begin 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 ERCOT (Galveston leases OCS-G 
37335 and OCS-G 37336) and Louisiana MISO (Lake Charles lease OCS-G-
37334) average price per MW from the Enerfax power prices dataset 
within Hitachi's ABB Velocity Suite. The Lessee may also use aggregated 
data from commercial subscription services, such as S&P Global Market 
Intelligence Platform.
    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://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities.

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/gulf-mexico-activities. Bidders seeking to use 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, BFF 
Addendum, and lease. Bidders who do not wish 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 bidding credits on 
the BFF or does not submit Conceptual Strategy(ies), then BOEM will 
conclude that the bidder has no interest in qualifying for a bidding 
credit. BOEM must receive each BFF and Conceptual Strategy(ies) no 
later than August 6, 2023. 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

[[Page 47181]]

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 GOMW-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 on paper with a wet signature or with the application of a 
digital signature by an authorized representative listed on the legal 
qualification card currently on file with BOEM as authorized to bind 
the company. Winning bidders who have committed to bidding credit(s) 
must meet the bidding credit requirements no later than submission of 
their first Facility Design Report (FDR) or applicable Lease 
Anniversary, whichever is sooner.

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 
submit a deposit. Each bidder must submit a bid deposit of $2,000,000 
no later than August 13, 2023, 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 $2,000,000 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 to this next 
highest bidder if the bidder that tendered it is not a provisionally 
winning bidder of one of the other Lease Areas. This process will be 
repeated if needed.

XII. Minimum Bid

    The minimum bid is the lowest dollar amount per acre that BOEM will 
accept as a winning bid and is the amount at which BOEM will start the 
bidding in the auction. BOEM has established a minimum bid of $50.00 
per acre for this lease sale. See the table in section XIII.d below for 
total minimum bids for each lease to be offered in this sale.

XIII. Auction Procedures

    Multiple-Factor Bidding Auction: As authorized by 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) supporting workforce training programs for the offshore wind 
industry or developing a domestic supply chain for the offshore wind 
industry, or a combination of both;
    (2) establishing and contributing to a fisheries compensatory 
mitigation fund or contributing to an existing fund to mitigate 
potential negative impacts to commercial and for-hire recreational 
fisheries caused by OCS offshore wind development in the GOM.
    This auction format was selected to:
    (1) enhance, through training, the offshore wind workforce and 
accelerate the establishment of a domestic supply chain for offshore 
wind manufacturing, assembly, or services, each of which will 
contribute to the 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 necessary or 
beneficial to the offshore wind industry; and
    (3) minimize potential economic effects on commercial fisheries 
impacted by potential offshore wind development.
    BOEM appoints a panel to review the Conceptual Strategies, as they 
are described in the BFF Addendum, prior to the auction. This panel 
will later verify the results of the lease sale. Following the panel's 
review of the Conceptual Strategy(ies) submitted by each bidder 
attempting to qualify for a bidding credit, BOEM will notify the bidder 
if it qualifies for a credit(s) prior to the mock auction. The bid made 
by a particular bidder in each round is comprised of the sum of a 
monetary factor (cash bid) and the value of any non-monetary factors 
(bidding credit(s)). The structure of the proposed bidding credits is 
explained in the subsection below.
    A bidder may seek to qualify for one or both of the bidding 
credits. The workforce training and/or domestic supply chain 
development bidding credits is worth 20 percent of the cash bid. A 
bidder may commit to both workforce training and supply chain 
development, but the bidding credit for these commitments combined 
would still be worth 20 percent of the cash bid. The GOM fisheries 
compensatory mitigation fund bidding credit is worth 10 percent of the 
cash bid. If a bidder qualifies for both of the bidding credits, the 
credits are additive for a total credit of 30 percent of the cash bid. 
Bidders are encouraged to review the BFF Addendum and lease obligations 
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:
[GRAPHIC] [TIFF OMITTED] TN21JY23.004

Workforce or Supply Chain Credit = $38,461,538 * 20% = $7,692,308
Fishing Mitigation Credit = $38,461,538 * 10% = $3,846,154

    Both the 20 percent workforce training/supply chain development 
credit and the 10 percent fisheries compensatory mitigation fund will 
require an explicit financial commitment equal to the amount of the 
credit.
    BOEM has prepared a table demonstrating the credit value 
calculations if a $50 million Asking

[[Page 47182]]

Price is paid for in part with various bidding credits. 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
                                            Asking                                   training/       Fisheries
        Qualified bidding credits            price      Cash bid    Credit value   supply chain    compensatory
                                           (million)                                development     mitigation
                                                                                       value        fund value
----------------------------------------------------------------------------------------------------------------
Workforce Training/Supply Chain                  $50   $38,461,538   $11,538,462      $7,692,308      $3,846,154
 Development; and Fisheries Compensatory
 Mitigation Fund (30%)..................
Workforce Training/Supply Chain                   50    41,666,667     8,333,333       8,333,333               0
 Development (20%)......................
Fisheries compensatory mitigation fund            50    45,454,545     4,545,455               0       4,545,455
 (10%)..................................
----------------------------------------------------------------------------------------------------------------
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 Bidding Credit for Workforce Training or Supply Chain 
Development or a Combination of Both: This bidding credit allows a 
bidder to receive a credit of 20 percent of its cash bid in exchange 
for a commitment to make a qualifying monetary contribution 
(``Contribution''), in the same amount as the bidding credit received, 
to programs or initiatives that support workforce training programs for 
the U.S. offshore wind industry or development of a U.S. domestic 
supply chain for the offshore wind industry, or both, as described in 
the Lease.
    i. The Contribution to workforce training must result in a better 
trained and/or larger domestic offshore wind workforce that will 
provide for more efficient operations via increasing the supply of 
fully trained personnel. Training of existing Lessee employees, Lessee 
contractors, or employees of affiliated entities will not qualify.
    ii. The Contribution to domestic supply chain development must 
result in (i) overall benefits to the U.S. 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; (iii) an 
offshore wind domestic supply chain improved by a reduction in 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 
facilities; or (iv) the development of a supply chain supporting the 
manufacture of offshore wind facility components.
    iii. Contributions cannot be used to satisfy private cost shares 
for any Federal tax or other incentive programs where cost sharing is a 
requirement. No portion of the Contribution may be used to meet the 
requirements of any other bidding credits in this or in other Federal 
lease sales for which the Lessee qualifies.
    iv. Bidders interested in obtaining this bidding credit may choose 
to commit to workforce training programs, domestic supply chain 
initiatives, or a combination of both. The Conceptual Strategy must 
describe verifiable actions that the Lessee will take that will allow 
BOEM to confirm compliance when the documentation for satisfying the 
bidding credit is submitted. The Contribution must be tendered in full, 
and the Lessee must provide documentation evidencing it has made the 
Contribution and complied with applicable requirements, no later than 
the date the Lessee submits its first Facility Design Report (FDR) or 
tenth Lease Anniversary, whichever is sooner.
    v. Contributions to workforce training will need to promote and 
support one or more of the following purposes: (i) 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, operation, maintenance, or decommissioning of 
offshore wind energy projects in the United States; (ii) Maritime 
training necessary for the crewing of vessels to be used for the 
construction, servicing, and/or decommissioning of wind energy projects 
in the United States; (iii) Training workers in skills or techniques 
necessary to manufacture or assemble offshore wind components, 
subcomponents, or subassemblies. (Examples of these skills and 
techniques include welding; wind energy technology; hydraulic 
maintenance; braking systems; mechanical systems, including blade 
inspection and maintenance; or computers and programmable logic control 
systems.); (iv) Tribal offshore wind workforce development programs or 
training for employees of wholly owned Tribal corporations in skills 
necessary in the offshore wind industry, that lead to the expeditious 
and orderly development of offshore wind; or (v) Training in any other 
job skills that the Lessee can demonstrate are necessary for the 
planning, design, construction, operation, maintenance, or 
decommissioning of offshore wind energy projects in the United States.
    vi. Contributions to domestic supply chain development must promote 
and support one or more of the following: (i) Development of a domestic 
supply chain for the offshore wind industry, including manufacturing of 
components and sub-assemblies and the expansion of related services; 
(ii) Domestic Tier 2 and Tier 3 offshore wind component suppliers and 
domestic Tier-1 supply chain efforts, including quay-side fabrication; 
(iii) Technical assistance grants to help U.S. manufacturers re-tool or 
certify (e.g., ISO-9001) for offshore wind manufacturing; (iv) 
Development of Jones Act-compliant vessels for the construction, 
servicing, and/or decommissioning of wind energy projects in the United 
States; (v) Purchase and installation of lift cranes capable of lifting 
foundations, lift cranes on vessels, towers and nacelles quayside; (vi) 
Port infrastructure directly related to offshore wind component 
manufacturing or assembly of major offshore wind facility components; 
(vii) Establishing a new or existing bonding support reserve or 
revolving fund available to all businesses providing goods and services 
to offshore wind energy companies, including disadvantaged businesses 
and/or wholly owned Tribal corporations; or (viii) Other supply chain 
development efforts that the Lessee can demonstrate advance the 
manufacturing of offshore wind components or subassemblies, or the 
provision of offshore wind services, in the United States.
    vii. Documentation: If a lease is issued pursuant to a winning bid 
that includes a bidding credit for workforce training/

[[Page 47183]]

supply chain development, the Lessee is required to provide 
documentation showing that the Lessee has met the financial commitment 
before the Lessee submits the first FDR for the lease or the tenth 
Lease Anniversary, whichever is sooner. The documentation must allow 
BOEM to objectively verify the amount of the Contribution and the 
beneficiary(ies) of the Contribution.
    At a minimum, the documentation must include: all written 
agreements between the Lessee and beneficiary(ies) of the Contribution, 
which agreement must detail the amount of the Contribution(s) and how 
it will be used by the beneficiaries of the Contribution(s) 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 
attesting that all information provided in the above documentation is 
true and accurate. The documentation needs to describe how the funded 
initiative or program has advanced, or is expected to advance, U.S. 
offshore wind workforce training or supply chain development. The 
documentation must also provide qualitative and/or quantitative 
information that includes the estimated number of trainees or jobs 
supported, or the estimated leveraged supply chain investment resulting 
or expected to result from the Contribution. The documentation must 
contain any information called for in the conceptual strategy that the 
Lessee submitted with its BFF and allow BOEM to objectively verify (i) 
the amount of the Contribution; (ii) the beneficiary(ies) of the 
Contribution; and (iii) compliance with the bidding credit criteria 
provided in Addendum ``C'' of the Lease. If the Lessee's implementation 
of its Conceptual Strategy changes due to market needs or other 
factors, the Lessee must explain the changes. BOEM reserves the right 
to determine that the bidding credit has not been satisfied if changes 
from the Lessee's Conceptual Strategy result in the Lessee not meeting 
the criteria for the bidding credit described in Addendum ``C'' of the 
Lease.
    viii. Enforcement: The commitment for the bidding credit is made 
via the BFF and will be included in a lease addendum that binds 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 Lease Anniversary, the amount 
corresponding to the bidding credit awarded will be immediately due and 
payable to the Office of Natural Resources Revenue (ONRR) with interest 
from the lease Effective Date. The interest rate is the underpayment 
interest rate identified by ONRR. The Lessee need not be required to 
pay said amount if the Lessee satisfied its bidding credit requirements 
but failed to develop the lease by the tenth Lease Anniversary. BOEM 
may, at its sole discretion, extend the documentation deadline beyond 
the first FDR submission or extend the lease development deadline 
beyond the 10-year timeframe.
    c. 10 Percent Bidding Credit for Fisheries Compensatory Mitigation 
Fund: The second bidding credit allows a bidder to receive a credit of 
10 percent of its cash bid in exchange for a commitment to establish--
and contribute the bidding credit amount to--a Fisheries Compensatory 
Mitigation Fund, or to contribute to such an existing fund, to 
compensate for potential negative impacts from project development to 
commercial and for-hire recreational fisheries. The term ``commercial 
fisheries'' refers to commercial and processor businesses engaged in 
the act of catching and marketing fish and shellfish for sale from the 
GOM. The term ``for-hire recreational fisheries'' refers to charter and 
head boat fishing operations involving vessels-for-hire engaged in 
recreational fishing in the GOM that are hired for a charter fee by an 
individual or group of individuals (for the exclusive use of that 
individual or group of individuals). Lessees are encouraged to 
contribute to a regional fund that will compensate fisheries losses 
resulting from all OCS wind energy leases and easements in the GOM. The 
compensation must address the following:
 Gear loss or damage
 Lost fishing income in GOM wind energy Lease or Project Areas
    The fisheries compensatory mitigation fund will assist commercial 
and for-hire recreational fisheries directly impacted by income or gear 
losses due to offshore wind activities on offshore wind leases or 
easements and is intended to address the impacts identified in BOEM's 
environmental and project reviews. The compensatory mitigation must 
cover impacts that result directly from the preconstruction, 
construction, operations and/or decommissioning of an offshore wind 
project being developed on GOM wind energy leases or easements. The 
fund must be established and the Contribution made before the Lessee 
submits the lease's first FDR or the fifth Lease Anniversary, whichever 
is sooner. To qualify for this credit, the bidder must commit to the 
bidding credit requirements on the BFF and submit a Conceptual Strategy 
as described in the BFF Addendum.
    i. Bidders committing to use the Fisheries Compensatory Mitigation 
Fund bidding credit must submit their Conceptual Strategy with their 
BFF, as described in the BFF Addendum. The Conceptual Strategy must 
describe the actions that the Lessee intends to take that will allow 
BOEM to verify compliance when the Lessee seeks to demonstrate 
satisfaction of the requirements for the bidding credit. The Lessee 
will be required to provide documentation showing that the Lessee has 
met the commitment and complied with the applicable bidding credit 
requirements before the Lessee submits the lease's first FDR or the 
fifth Lease Anniversary, whichever is sooner.
    ii. Gear loss and damage, and fishing income loss claims must be 
prioritized at each phase of offshore wind project development, 
including impacts from surveys conducted before the establishment of 
the fund. BOEM encourages Lessees to coordinate with other Lessees to 
establish or contribute to a regional fund. A regional fund should be 
flexible enough to incorporate future contributions from future lease 
auctions and actuarially sound, in recognition of the multi-decade life 
of offshore wind projects in the GOM. While the fund's first priority 
must be to compensate for gear loss or damage and income loss, funds 
that exceed this compensation need based on an actuarial accounting 
may, for example, be used to:
    a. Promote participation of fishers and fishing communities in the 
project development process or other programs that better enable the 
fishing and offshore wind industries to co-exist;
    b. Offset the cost of gear and navigational aid upgrades and other 
transitions for operating within an offshore wind project.
    Any fund established or selected by the Lessee to meet this sale's 
bidding credit requirement must include a process for evaluating the 
actuarial status of funds every five years and publicly reporting 
information on fund disbursements and administrative costs at least 
annually.
    iii. The fisheries compensatory mitigation fund must be 
independently managed by a third party and designed with fiduciary 
governance and strong internal controls while minimizing administrative 
expenses. The

[[Page 47184]]

Contribution may be used for fund startup costs, but the Fund should 
minimize costs by leveraging existing processes, procedures and 
information from BOEM Fisheries Mitigation Guidance, the Eleven 
Atlantic States' Fisheries Mitigation Project or other sources.
    iv. Documentation: If a lease is awarded pursuant to a winning bid 
that includes a Fisheries Compensatory Mitigation Fund bidding credit, 
the Lessee must provide written documentation to BOEM that demonstrates 
that it completed the fund contribution before it submits the lease's 
first FDR or the fifth Lease Anniversary, whichever is sooner. The 
documentation must enable BOEM to objectively verify the contribution 
has met all applicable requirements as outlined in Addendum ``C'' of 
the Lease. At a minimum, this documentation must include:
     the procedures established to compensate for gear loss or 
damage resulting from all phases of the project development on the 
Lease Area (pre-construction, construction, operation, and 
decommissioning);
     the fisheries compensatory mitigation fund charter, 
including the governance structure, audit and public reporting 
procedures, internal controls, and standards for paying compensatory 
mitigation for impacts to fishers from development on wind energy Lease 
Areas in the GOM;
     all receipts documenting the amount, date, financial 
institution, and the account and owner of the account to which the 
Contribution was made, including any qualifying payments made in 
advance of the fund being established; and
     sworn statements by the entity that made the Contribution, 
and the independent Fund custodian attesting:
    [cir] the amount and date(s) of the Contribution;
    [cir] that the Contribution is being (or will be) used in 
accordance with the bidding credit requirements in the lease; and
    [cir] that all information provided is true and accurate.
    The documentation must contain any information specified in the 
conceptual strategy that was submitted with the BFF, including the 
mechanism established to compensate for lost income or for gear loss or 
damage during pre-construction, construction, operation, and 
decommissioning activities. If the Lessee's implementation of its 
Conceptual Strategy changes due to market needs or other factors, the 
Lessee must explain the changes. BOEM reserves the right to determine 
that the bidding credit has not been satisfied if changes from the 
Lessee's Conceptual Strategy result in the Lessee not meeting the 
criteria for the bidding credit described in Addendum ``C'' of the 
Lease.
    v. Enforcement: The commitment to the fisheries compensatory 
mitigation fund bidding credit will be made in the BFF. It will be 
included in Addendum ``C'' of the Lease, and will bind the Lessee and 
all future assignees of the lease. If BOEM determines that a Lessee or 
assignee had failed to satisfy the commitment at the time the first FDR 
is submitted, or by the fifth Lease Anniversary, the amount 
corresponding to the bidding credit awarded will be immediately due and 
payable to ONRR with interest from the lease Effective Date. The 
interest rate is the underpayment interest rate identified by ONRR. The 
Lessee will not be required to pay said amount if the Lessee satisfied 
its bidding credit requirements by the fifth Lease Anniversary. BOEM 
may, at its sole discretion, extend the documentation deadline beyond 
the first FDR submission or beyond the 5-year timeframe.
    d. The Auction: Using an online bidding system to host the auction, 
BOEM will start the bidding for Lease Areas OCS-G 37334 through 37336, 
as described below. All three Lease Areas will be offered in a single 
auction. BOEM is employing a `one-per-customer' rule for this auction. 
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.

----------------------------------------------------------------------------------------------------------------
                    Lease area name                        Lease area ID          Acres           Minimum bid
----------------------------------------------------------------------------------------------------------------
Lake Charles...........................................         OCS-G37334            102,480         $5,124,000
Galveston I............................................         OCS-G37335            102,480          5,124,000
Galveston II...........................................         OCS-G37336             96,786          4,839,300
----------------------------------------------------------------------------------------------------------------

    e. 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 (10%, 20%, or 30% 
of the cash element, depending on the bidder's qualification for 
bidding credits), the sum of which equals the asking price. A bidder 
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 will not be increased.
    A live bid is automatically 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 will 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 is 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. The initial 
eligibility of a bidder who has submitted a bidding deposit is one.

[[Page 47185]]

The bidder's eligibility drops to zero following a round in which the 
bidder's live bid is not carried forward and in which the bidder does 
not submit a new live bid for one of the Lease Areas. The bidder's 
eligibility can never increase from zero to one.
    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.
    f. 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.
    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, including any carried-
forward 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 will 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.
    g. 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 individuals who are authorized to bid on behalf of the 
company, including their names, business telephone numbers, and email 
addresses. After BOEM has processed the bid deposits, the auction 
contractor will send several emails to the authorized individuals. The 
emails will contain user login information and instructions for 
accessing the bidder manual for the auction system and 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 8:00 a.m. CDT on 
August 29, 2023. Bidders may log in as early as 7:30 a.m. CDT on that 
day. BOEM recommends that bidders log in earlier than 8:00 a.m. CDT 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 5:00 p.m. CDT each day. BOEM anticipates that the auction 
will last one to two business days, but may

[[Page 47186]]

continue for additional business days as necessary until the auction 
has concluded.
    iii. Messaging Service: BOEM and its 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 service to notify 
bidders that a revision has been made and will direct bidders to the 
relevant page. BOEM will also use the messaging service 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 in 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 who 
is 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.
    h. 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 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 cash bid less the bid deposit). BOEM requires 
bidders to use EFT procedures (not pay.gov, the website bidders used to 
submit bid deposits) for payment of the balance of the bonus bid, 
following the detailed instructions available on ONRR's website at: 
https://onrr.gov/paying/payment-options?tabs=renewable-energy,bid-deposit-options.
    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 available on ONRR's website at: 
https://onrr.gov/paying/payment-options?tabs=rent-payments.

[[Page 47187]]

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 Gulf of Mexico 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/gulf-mexico-activities. Bidders 
should call (504) 736-7502 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 585.114, 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 [oil and gas] 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 [oil and gas] 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[.]'' Lease Sale 259 
was held on March 29, 2023, and at least one lease from the sale has 
been issued, satisfying the requirements in section 50265(b)(2) of the 
IRA for any lease issued by March 29, 2024. BOEM expects to issue any 
leases resulting from GOMW-1 no later than the one-year anniversary of 
Lease Sale 259.
    Authority: 43 U.S.C. 1337(p); 30 CFR 585.211 and 585.216.

Elizabeth Klein,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2023-15501 Filed 7-20-23; 8:45 am]
BILLING CODE 4340-98-P