Atlantic Wind Lease Sale 10 for Commercial Leasing for Wind Power Development on the U.S. States Central Atlantic Outer Continental Shelf-Proposed Sale Notice, 86145-86156 [2023-27200]

Agencies

• DEPARTMENT OF THE INTERIOR
• Bureau of Ocean Energy Management

[Federal Register Volume 88, Number 237 (Tuesday, December 12, 2023)]
[Notices]
[Pages 86145-86156]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-27200]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2023-0062]


Atlantic Wind Lease Sale 10 for Commercial Leasing for Wind Power 
Development on the U.S. States Central Atlantic Outer Continental 
Shelf--Proposed Sale Notice

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Proposed sale notice; request for comments.

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SUMMARY: The Bureau of Ocean Energy Management (BOEM) proposes to hold 
Atlantic Wind Lease Sale 10 and offer one or more lease areas (Lease 
Areas) for commercial wind power development on the U.S. Central 
Atlantic Outer Continental Shelf (OCS). The Lease Areas are located in 
the previously identified wind energy areas (WEAs) A-2 and C-1 offshore 
the State of Delaware and the Commonwealth of Virginia. This proposed 
sale notice (PSN) contains information pertaining to the areas 
available for leasing, certain lease provisions and conditions, auction 
details, criteria for evaluating competing bids, and procedures for 
lease award, appeals, and lease execution. BOEM proposes a multiple 
factor bidding format using a simultaneous clock auction. BOEM will use 
new auction software for the lease sale, with attendant and minor 
changes in the auction rules used in previous OCS wind lease auctions. 
Any lease resulting from this sale does not constitute approval of any 
offshore wind energy facilities. Lessees must first submit project-
specific plans to BOEM and obtain BOEM's approval before they may start 
any construction of an OCS wind energy facility. BOEM will subject such 
plans to environmental, technical, and public reviews prior to deciding 
whether the proposed development should be authorized.

DATES: BOEM must receive your comments no later than February 12, 2024.
    For prospective bidders who want to participate in this lease sale, 
unless you have received confirmation from BOEM that you are qualified 
to participate in the Central Atlantic auction, BOEM must receive your 
qualification materials no later than February 12, 2024 and, prior to 
the auction, BOEM must confirm your qualification to bid in the 
auction.

ADDRESSES: You may send comments in any of the following ways:
     Electronically: Visit https://www.regulations.gov. In the 
entry entitled, ``Enter Keyword or ID,'' enter [BOEM-2023-0062] then 
click ``search.'' Follow the instructions to submit comments.
     Mail or delivery service: Enclose comment in an envelope 
labeled, ``Comments on Central Atlantic Wind Lease Sale PSN'' and send 
to: Bridgette Duplantis, Bureau of Ocean Energy Management, Office of 
Renewable Energy Programs, 45600 Woodland Road, VAM-OREP, Sterling, 
Virginia 20166.
     For prospective bidders who want to participate in this 
lease sale: Submit your qualification materials in an envelope labeled, 
``Qualification Materials for Central Atlantic Wind Energy Lease Sale'' 
to Bureau of Ocean Energy Management, Office of Renewable Energy 
Programs, 45600 Woodland Road, VAM-OREP, Sterling, Virginia 20166 or 
electronically to boem.gov">renewableenergy@boem.gov.

[[Page 86146]]

    For more information about submitting comments, see Sections XX, 
``Public Participation,'' and XXI, ``Protection of Privileged and 
Confidential Information,'' under the SUPPLEMENTARY INFORMATION caption 
below.

FOR FURTHER INFORMATION CONTACT: Bridgette Duplantis, Bureau of Ocean 
Energy Management, boem.gov">bridgette.duplantis@boem.gov or (504) 736-7502.

SUPPLEMENTARY INFORMATION: 

I. Background

    a. Call for Information and Nominations: On April 29, 2022, BOEM 
published the ``Call for Information and Nominations-Commercial Leasing 
for Wind Power Development on the Central Atlantic Outer Continental 
Shelf'' (Call). The Call consisted of six areas labelled A-F. BOEM 
received 66 comments from the general public; Federal, State, and local 
agencies; the fishing industry; industry groups; developers; non-
governmental organizations (NGOs); universities; and other 
stakeholders. Comments can be viewed at https://www.regulations.gov/document/BOEM-2022-0023-0001/comment. Three developers nominated areas 
for a commercial wind energy lease within the Call Area.
    b. Area Identification: After modifying the Area Identification 
(Area ID) process in a Notice to Stakeholders, which is available at 
https://www.boem.gov/newsroom/notes-stakeholders/boem-enhances-its-processes-identify-future-offshore-wind-energy-areas, BOEM used this 
process to support identification of Draft WEAs in the Central 
Atlantic. After the close of the Call comment period on June 28, 2022, 
BOEM initiated the Area ID process by reviewing the input received on 
the Call. BOEM and the National Oceanic and Atmospheric 
Administration's National Centers for Coastal Ocean Science (NCCOS) 
Team used an ocean planning tool to identify the eight Draft WEAs on 
the U.S. Central Atlantic OCS using the methodology outlined in the 
BOEM and NCCOS Draft Report: Development of the Central Atlantic Wind 
Energy Areas, which can be found at https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/BOEM_NCCOS_JointReport_DraftWEAs.pdf.
    On November 16, 2022, BOEM opened a 30-day public comment period on 
eight draft WEAs on the OCS offshore the U.S. Central Atlantic coast, 
covering approximately 1.7 million acres. BOEM considered the following 
non-exclusive information sources when identifying the draft WEAs: 
comments and nominations received on the Call; information from the 
Central Atlantic Intergovernmental Renewable Energy Task Force; input 
from Delaware, Maryland, Virginia, and North Carolina State agencies; 
input from Federal agencies; comments from stakeholders and ocean 
users, including the maritime community, offshore wind developers, and 
the commercial and recreational fishing industry; state and local 
renewable energy goals; and information on domestic and global offshore 
wind market and technological trends. BOEM's draft WEA recommendations 
did not reflect a final assessment from the Department of Defense (DOD) 
regarding compatibility of the draft WEAs with DOD needs.
    After the close of the draft WEA comment period on December 16, 
2022, BOEM finalized the Area ID process after reviewing the input 
received from all stakeholders mentioned above and the DOD assessment. 
BOEM announced the final WEAs on July 31, 2023, by designating three 
WEAs within the Call Area. The first WEA (A-2) is 101,767 acres and 
located approximately 26 nautical miles (nm) from Delaware Bay. The 
second WEA (B-1) is 78,285 acres and located 23.5 nm offshore Ocean 
City, Maryland. The third WEA (C-1) is 176,506 acres and located 
approximately 35 nm from the mouth of the Chesapeake Bay. The final 
WEAs comprise 356,558 acres and would support approximately 4.3-8.1 GW 
of energy production if fully developed. BOEM, DOD (the Departments of 
the Air Force and Navy), and the National Aeronautics and Space 
Administration (NASA) agreed to undertake an in-depth review of WEA B-1 
to determine if the impacts to military and NASA operations could be 
acceptable and/or mitigated. The Central Atlantic Area Identification 
process and documentation can be found at https://www.boem.gov/renewable-energy/state-activities/central-atlantic.
    c. Environmental Reviews: On August 1, 2023, 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. When 
scoping the EA, BOEM sought comments on the issues and alternatives 
that should inform the EA. BOEM received 104 comment submissions, which 
can be found at https://www.regulations.gov under Docket No. BOEM-2023-
0034. In addition to the preparation of the Draft EA, including 
compliance with threatened and endangered species requirements for 
certain data collection activities associated with OCS leasing (https://www.boem.gov/sites/default/files/documents/renewable-energy/OSW-surveys-NLAA-programmatic.pdf), BOEM has initiated other required 
consultations under the Endangered Species Act, the Magnuson-Stevens 
Fishery Conservation and Management Act, and the Coastal Zone 
Management Act. The EA and associated consultations will inform BOEM's 
decision whether to proceed with the final sale notice (FSN). BOEM will 
solicit comments on the EA before it is finalized. BOEM will conduct 
additional environmental reviews upon receipt of a lessee's 
Construction and Operations Plan (COP) if the proposed leases reach 
that stage of development.

II. Areas Proposed for Leasing

    BOEM proposes two areas for leasing. Lease Area A-2, OCS-A 0557, 
which consists of 101,443 acres and is approximately 26.4 nm from 
Delaware Bay; and Lease Area C-1, OCS-A 0558, which consists of 176,505 
acres and is approximately 35 nm from the mouth of the Chesapeake Bay.

------------------------------------------------------------------------
           Lease area name               Lease area ID         Acres
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A-2..................................         OCS-A 0557         101,443
C-1..................................         OCS-A 0558         176,505
                                      ----------------------------------
    Total............................  .................         277,948
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    Descriptions of the proposed Lease Areas can be found in Addendum A 
of the proposed leases, which can be found on BOEM's website at: 
https://www.boem.gov/renewable-energy/state-activities/central-atlantic. As described

[[Page 86147]]

in Section I (b), the Federal team consisting of BOEM, DOD, and NASA 
reviewed the constraints associated with Area B-1, and conducted an 
analysis of the mitigations that would be necessary to keep that Area 
viable during an initial Central Atlantic offshore wind sale. The team 
identified the magnitude and cost of collective mitigation needed to 
accommodate offshore wind construction and operations in this area. 
After this review, BOEM decided to remove WEA B-1 from consideration as 
part of the upcoming Central Atlantic lease sale due to the significant 
costs and mitigation that would be required.
    a. Map of the Area Proposed 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/central-atlantic.
    b. Potential Future Restrictions to Ensure Navigational Safety: 
Potential bidders are advised that portions of the Lease Areas may not 
be available for future development (i.e., installation of wind energy 
facilities) because of navigational safety concerns. 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.
    c. Potential Future Restrictions to Mitigate Potential Conflicts 
with Department of Defense Activities: Those interested in bidding 
should be aware of potential conflicts with DOD's existing uses of the 
OCS. BOEM coordinates with DOD throughout the leasing process and the 
Military Aviation and Installation Assurance Siting Clearinghouse 
conducted a DOD assessment of the Call Area. The assessment identified 
the following potential issues that may require mitigation.
    i. Air Surveillance and Radar: 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 project approval 
conditions:
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    \1\ RAM is the technical process designed to minimize the 
adverse impact of obstruction interference on a radar system.
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    (1) Lessee will notify NORAD when the project is within 30-60 days 
of completion of commissioning of the last wind turbine generator (WTG) 
(meaning every WTG in the Project is installed with potential for blade 
rotation), 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.
    ii. Advanced Dynamic Aircraft Measurement System (ADAMS) 
operations: The Department of the Navy identified ADAMS operations that 
could be impacted by development off the coast of Norfolk, Virginia, 
and may require curtailment or other mitigation.
    iii. U.S. Air Force and U.S. Air Force Air National Guard 
operations: The U.S. Air Force noted that the airspace above both 
proposed Lease Areas has a floor of 1,000 feet above sea level. The 
U.S. Air Force requested BOEM limit structure heights to no higher than 
1,000 feet above sea level.
    BOEM may require the lessee to enter into an agreement with DOD to 
implement these conditions and mitigate any identified impacts. 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.
    d. Proposed Restrictions Related to National Aeronautics and Space 
Administration (NASA) Wallops Island Flight Facility Operations: NASA 
and the Missile Defense Agency identified potential impacts to 
operations originating from the Wallops Island Flight Facility. BOEM 
has included stipulations in proposed Lease OCS-A 0558 (NASA 
Operations, section 11) to avoid and minimize this potential conflict 
with wind energy development.
    e. Potential Future Restrictions to Mitigate Potential Conflicts 
with Sand Resources: Potential bidders are advised that BOEM has 
developed sand resource areas in aliquots offshore the Mid Atlantic 
(MMIS Application (https://mmis.doi.gov/BOEMMMIS/)). OCS sand resource 
areas are composed of sand deposits found on or below the surface of 
the OCS seabed. If it is determined that significant OCS sand resources 
may be impacted by a proposed activity, BOEM may require you to 
undertake measures deemed economically, environmentally, and 
technically feasible to protect the resources to the maximum extent 
practicable, including minimizing, avoiding, and mitigating impact to 
these resources. Measures may include modification of proposed 
transmission corridor locations. There is potential for sand resources 
to exist in aliquots not currently identified. BOEM and/or BSEE will 
not approve future requests for in-place decommissioning of cables in 
sand resource areas unless BOEM's Marine Minerals Program has 
determined that the cable corridor does not unduly interfere with other 
uses of the OCS, specifically sand resource use.

III. Participation in the Proposed Lease Sale

    a. Bidder Participation: Entities that have been notified by BOEM 
that their qualification is pending or that they are qualified to 
participate in the upcoming Central Atlantic auction through their 
response to the Call, or by separate submission of qualification 
materials, are not required to take any additional action to affirm 
their interest. Those entities are listed below:

------------------------------------------------------------------------
                      Company name                          Company No.
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Avangrid Renewables, LLC................................           15019
US Mainstream Offshore, Inc.............................           15089
OW North America Ventures LLC...........................           15133
energyRe Offshore Wind Holdings, LLC....................           15171
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    All other entities wishing to participate in this proposed Central 
Atlantic auction must submit the required qualification materials to 
BOEM by the end of the 60-day comment period for this PSN.
    b. Affiliated Entities: On the Bidder's Financial Form (BFF), 
discussed below, eligible bidders must list any other eligible bidders 
with whom they are affiliated. 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 a 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,

[[Page 86148]]

of another bidding entity, and BOEM determines that there is control 
upon consideration of factors including the following:
    (1) The extent to which there are common officers or directors.
    (2) 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.
    (3) 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 585.112.
    iii. They are both direct or indirect subsidiaries of the same 
parent company.
    iv. If, 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, 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.
    BOEM solicits comments from stakeholders on this definition and 
will consider this feedback to potentially update its definition of 
affiliated entities in the Final Sale Notice (FSN).

IV. Questions for Stakeholders

    Stakeholders are encouraged to comment on any matters related to 
this proposed lease sale that are of interest or concern. In addition, 
BOEM has identified the following issues as particularly important, and 
we encourage commenters to address these issues specifically:
    a. Number, size, orientation, and location of the proposed Lease 
Areas: BOEM is requesting comment on the number of leases that should 
be offered within the Lease Areas, the size and orientation of the 
Lease Areas, and any portions of the Lease Areas that should be 
prioritized for inclusion or exclusion from this lease sale.
    b. Considerations for the delineation of a Lease Area: These 
delineation considerations may include comparable commercial viability 
and size; prevailing wind direction and minimizing wake effects; 
maximized energy generating potential; possible setbacks at Lease Area 
boundaries; distance to shore, port infrastructure and electrical grid 
interconnections; and fair return to the Federal Government pursuant to 
the Outer Continental Shelf Lands Act through competition for 
commercially viable Lease Areas. BOEM welcomes additional comments 
regarding other considerations for how best to delineate Lease Areas.
    i. Lease Area C-1: BOEM is specifically requesting comment on the 
need for a buffer or setback between proposed Lease Area C-1 (Lease 
OCS-A 0558) and the existing Lease Area OCS-A 0483 to the West. 
Comments on the need for a buffer, the size or distance of the buffer 
between leases, and the method for implementing a buffer between Lease 
Areas are requested. A buffer from the existing Lease Area could be 
accomplished through removal of lease blocks from proposed Lease Area 
C-1 or through a lease stipulation that prohibits surface structures 
within a specified distance of Lease OCS-A 0483. BOEM has included such 
lease stipulation (Siting Conditions, section 10) in Addendum ``C'' of 
proposed Lease OCS-A 0558.
    c. Existing uses and how they may be affected by the development of 
the proposed Lease Areas: BOEM asks commenters to submit technical and 
scientific data in support of their comments.
    d. Bidding Credit for Workforce Training or Supply Chain 
Development: Are there additional activities that should qualify for 
this bidding credit or are there other changes to the structure of the 
credit that will best aid in developing a sustained and robust U.S. 
offshore wind workforce and/or energy supply chain?
    e. Fisheries Compensatory Mitigation Fund Credit: BOEM seeks 
comment on its proposal for a fisheries compensatory mitigation fund 
and the associated bidding credit as described in Section XII.
    f. Potential future bidding credit for Conservation Programs: While 
this bidding credit is not being considered for the Central Atlantic, 
BOEM is requesting comments on a conservation program bidding credit, 
which would allow a bidder to receive a credit in exchange for a 
commitment to advance conservation for threatened and endangered 
species, migratory birds, or North Atlantic right whales (NARWs). The 
Contribution to advance conservation programs would need to result in 
demonstrable benefits to: (i) species conservation and/or recovery 
goals; and/or (ii) net positive impacts associated with habitat 
restoration, enhancement, or preservation for these species.
    Specifically, BOEM is considering for future sales a credit that 
would include one or more of the following: (i) contributions 
supporting the development and operation of a near-real-time acoustic 
surveillance system to detect and report the location of NARWs that 
would directly inform adaptive management strategies for the protection 
of NARWs; (ii) establishment of an on-demand gear program that would 
provide, exchange, or otherwise replace gear used in Federal- and 
State-permitted commercial fisheries that deploy vertical lines with 
on-demand gear that would avoid entanglements with NARWs; (iii) 
programs that reduce underwater ambient noise caused by the operation 
of vessels; (iv) programs that meet recovery objectives for threatened 
and endangered bird species; and/or (v) restoration, enhancement, or 
protection of migratory bird breeding, resting, feeding, or migratory 
habitats. BOEM is seeking stakeholder feedback on the following:
    i. What portion of the total bidding credits should go towards a 
conservation program?
    ii. Eligible activities or projects authorized under a conservation 
bidding credit.
    iii. Documentation and enforcement mechanisms.
    g. Limits on the Number of Lease Areas per Bidder: BOEM is 
proposing to allow each qualified entity to bid for one Lease Area at a 
time and ultimately acquire only one Lease Area.
    h. New national security stipulations related to foreign interest: 
BOEM has included new lease stipulations (4.4 and 4.5) for an Atlantic 
renewable energy lease related to foreign entities and national 
security. Stipulation 4.4 requires the lessee to provide the names of 
entities who own, or will engage in activities at, an OCS facility, and 
the names of any foreign entities allowed access to such facilities, to 
DOD for review at least 14 days prior to the lessee taking any actions 
in the Lease Area. Stipulation 4.5 requires an assignor and assignee to 
notify the Committee on Foreign Investment in the United States as part 
of the assignment process. BOEM requests comment on both of these 
proposed lease stipulations.

[[Page 86149]]

V. Proposed Lease Sale Deadlines and Milestones

    This section describes the major deadlines and milestones in the 
auction process from publication of this PSN to execution of a lease 
issued pursuant to this sale.
    a. The PSN Comment Period:
    i. Submit Comments: The public is invited to submit comments during 
this 60-day period, which will expire on February 12, 2024. All 
comments received or postmarked during the comment period will be made 
available to the public and considered by BOEM prior to publication of 
the FSN.
    ii. Public Auction Seminar: BOEM will host a public seminar to 
discuss the lease sale process and the auction format. The time and 
place of the seminar will be announced by BOEM and published on the 
BOEM website at https://www.boem.gov/renewable-energy/state-activities/central-atlantic. No registration or RSVP is required to attend.
    iii. Submit Qualification Materials: Unless you have already 
received confirmation from BOEM that you are qualified to participate 
in the Central Atlantic auction, all qualification materials must be 
received by BOEM by February 12, 2024. This requirement includes the 
submission of materials sufficient to establish a company's legal, 
technical, and financial qualifications pursuant to 30 CFR 585.106-107. 
BOEM's qualification guidelines available at https://www.boem.gov/Renewable-Energy-Qualification-Guidelines/ provide guidance on the 
types of information you should submit to BOEM. BOEM will inform you if 
you are qualified to participate in the auction.
    iv. Confidential information. If you wish to protect the 
confidentiality of your comments or qualification materials, clearly 
mark the relevant sections and request that BOEM treat them as 
confidential. Please label privileged or confidential information with 
the caption ``Contains Confidential Information'' and consider 
submitting such information as a separate attachment. Treatment of 
confidential information is addressed in section XXI entitled, 
``Protection of Privileged or Confidential Information.'' Information 
that is not labeled as privileged or confidential will be regarded by 
BOEM as suitable for public release.
    b. End of PSN Comment Period to FSN Publication:
    i. Review Comments: BOEM will review all comments submitted in 
response to the PSN during the comment period.
    ii. Finalize Qualifications Reviews: Prior to the publication of 
the FSN, BOEM will complete any outstanding reviews of bidder 
qualification materials submitted during the PSN comment period. The 
final list of eligible bidders will be published in the FSN.
    iii. Prepare the FSN: BOEM will prepare the FSN by updating 
information contained in the PSN where necessary.
    iv. Publish FSN: BOEM will publish the FSN in the Federal Register 
at least 30 calendar days before the date of the sale.
    c. FSN Waiting Period: During the period between FSN publication 
and the lease auction, qualified bidders would be required to take 
several steps to remain eligible to participate in the auction.
    i. Bidder's Financial Form: Each bidder must submit a BFF to BOEM 
to participate in the auction. The BFF must include each bidder's 
Conceptual Strategy for each non-monetary bidding credit for which that 
bidder wishes to be considered. BOEM must receive each bidder's BFF no 
later than the date listed in the FSN. BOEM could consider extensions 
to this deadline only if BOEM determines that the failure to timely 
submit a BFF was caused by events beyond the bidder's control. The 
proposed BFF can be downloaded at: https://www.boem.gov/renewable-energy/state-activities/central-atlantic.
    (1) Once BOEM has processed a bidder's BFF, the bidder would be 
allowed to log into https://www.pay.gov and submit a bid deposit. For 
purposes of this auction, BOEM would not consider BFFs submitted by 
bidders for previous lease sales. An original signed BFF may be mailed 
to BOEM's Office of Renewable Energy Programs for certification. A 
signed copy of the form may be submitted in PDF format to 
boem.gov">renewableenergy@boem.gov. A faxed copy will not be accepted. Your BFF 
submission should be accompanied with a transmittal letter on company 
letterhead.
    (2) The BFF must be executed by an authorized representative listed 
on the bidder's legal qualifications in the BFF, in accordance with 18 
U.S.C. 1001 (fraud and false statements).
    (3) Additional information regarding the BFF may be found below in 
Section IX entitled, ``Bidder's Financial Form.''
    ii. Bid Deposit: Each qualified bidder must submit a bid deposit of 
$5,000,000 in order to bid for one (1) Lease Area. Further information 
about bid deposits can be found below in Section X ``Bid Deposit.''
    d. Notification of Eligibility for Non-Monetary Credits: Prior to 
the Mock Auction, BOEM would notify each bidder of its determination of 
eligibility for bidding credits for each auction in which the bidder is 
participating.
    e. Mock Auction: BOEM will hold a Mock Auction that is open only to 
qualified bidders who have met the requirements and deadlines for 
auction participation, including submission of the bid deposit. Final 
details of the Mock Auction will be provided in the FSN.
    f. The Auction: BOEM, through its contractor, will hold an auction 
as described in the FSN. The auction will take place no sooner than 30 
calendar days following the publication of the FSN in the Federal 
Register. The estimated timeframes described in this PSN assume the 
auction will take place approximately 45 calendar days after the 
publication of the FSN. Final dates will be included in the FSN. BOEM 
will announce the provisional winners of the lease sale after the 
auction ends.
    g. From the Auction to Lease Execution:
    i. Refund Non-Winners: Once the provisional winners have been 
announced, BOEM will provide the non-winners with a written explanation 
of why they did not win and will return their bid deposits.
    ii. Department of Justice (DOJ) Review: DOJ will have up to 30 
calendar days to conduct an antitrust review of the auction, pursuant 
to 43 U.S.C. 1337(c).
    iii. Delivery of the Lease: BOEM will send three lease copies to 
each provisional winner, with instructions on how to execute the lease. 
Once the lease has been fully executed, a provisional winner becomes an 
auction winner. The first year's rent is due 45 calendar days after the 
auction winners receive the lease copies for execution.
    iv. Return the Lease: Within ten business days of receiving the 
lease copies, the auction winners must post financial assurance, pay 
any outstanding balance of their winning bids (i.e., winning monetary 
bid minus applicable bid deposit and value of the bidding credit, as 
applicable), and sign and return the three executed lease copies. The 
winners may request extensions and BOEM may grant such extensions if 
BOEM determines the delay was caused by events beyond the requesting 
winner's control, pursuant to 30 CFR 585.224(e).
    v. Execution of Lease: Once BOEM has received the signed lease 
copies and verified that all other required materials have been 
received, BOEM will make a final determination regarding its issuance 
of the leases and will execute the leases, if appropriate.

[[Page 86150]]

VI. 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.

VII. Lease Terms and Conditions

    BOEM has made available the proposed terms, conditions, and 
stipulations for the commercial leases that would be offered through 
this proposed sale. BOEM reserves the right to require compliance with 
additional terms and conditions associated with the approval of a site 
assessment plan (SAP) and COP. The proposed lease is on BOEM's website 
at: https://www.boem.gov/renewable-energy/state-activities/central-atlantic. Each lease would include the following attachments:
    a. Addendum A (``Description of Leased Area and Lease 
Activities'');
    b. Addendum B (``Lease Term and Financial Schedule'');
    c. Addendum C (``Lease-Specific Terms, Conditions, and 
Stipulations''); and
    d. Addendum D (``Project Easement'').

VIII. Lease Financial Terms and Conditions

    This section provides an overview of the required annual payments 
and financial assurances under the lease. Please see the proposed 
lease, particularly Addendum ``B,'' for more detailed information, 
including any changes from past practices.
    a. Rent: Pursuant to 30 CFR 585.224(b) and 585.503, the first 
year's rent payment of $3 per acre is due within 45 calendar days after 
the lessee receives the lease copies from BOEM. Thereafter, annual rent 
payments are due on the anniversary of the effective date of the lease 
(the ``Lease Anniversary''). Once commercial operations under the lease 
begin, BOEM will charge rent only for the portions of the Lease Area 
remaining undeveloped (i.e., non-generating acreage). For example, for 
the 101,443 acres Lease Area of OCS-A 0557 (A-2), the rent payment 
would be $304,329 per year until commercial operations begin.
    If the lessee submits an application for relinquishment of a 
portion of its leased area within the first 45 calendar days after 
receiving the lease copies from BOEM and BOEM approves that 
application, no rent payment would be due on the relinquished portion 
of the Lease Area. Later relinquishments of any portion of the Lease 
Area would reduce the lessee's rent payments starting in the year 
following BOEM's approval of the relinquishment.
    The lessee also must pay rent for any project easement associated 
with the lease. Rent commences on the date that BOEM approves the COP 
that describes the project easement (or any modification of such COP 
that affects the easement acreage), as outlined in 30 CFR 585.507. If 
the COP revision results in increased easement acreage, additional rent 
would be required at the time the COP revision is approved. Annual rent 
for a project easement is the greater of $5 per acre per year or $450 
per year.
    b. Operating Fee: For purposes of calculating the initial annual 
operating fee payment under 30 CFR 585.506, BOEM applies an operating 
fee rate to a proxy for the wholesale market value of the electricity 
expected to be generated from the project during its first 12 months of 
operations. This initial payment will be prorated to reflect the period 
between the commencement of commercial operations and the Lease 
Anniversary. The initial annual operating fee payment will be due 
within 90 calendar days of the commencement of commercial operations. 
Thereafter, subsequent annual operating fee payments will be due on or 
before the Lease Anniversary.
    The subsequent annual operating fee payments will be calculated by 
multiplying the operating fee rate by the imputed wholesale market 
value of the projected annual electric power production. For the 
purposes of this calculation, the imputed market value will be the 
product of the project's annual nameplate capacity, the total number of 
hours in a year (8,760), the capacity factor, and the annual average 
price of electricity derived from a regional wholesale power price 
index. For example, the annual operating fee for a 976 megawatt (MW) 
wind facility operating at a 40 percent capacity (i.e., capacity factor 
of 0.4) with a regional wholesale power price of $40 per megawatt hour 
(MWh) and an operating fee rate of 0.02 would be calculated as follows:
[GRAPHIC] [TIFF OMITTED] TN12DE23.012

    i. Operating Fee Rate: The operating fee rate is the share of the 
imputed wholesale market value of the projected annual electric power 
production due to the Office of Natural Resources Revenue (ONRR) as an 
annual operating fee. For the Lease Areas, BOEM proposes to set the fee 
rate at 0.02 (2 percent) for the entire life of commercial operations.
    ii. Nameplate Capacity: Nameplate capacity is the maximum rated 
electric output, expressed in MW, which the turbines of the wind 
facility under commercial operations can produce at their rated wind 
speed as designated by the turbine's manufacturer.
    iii. Capacity Factor: BOEM proposes to set the capacity factor at 
0.4 (i.e., 40 percent) for the year in which the commercial operations 
date occurs and for the first six 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 the following table provides the proposed price 
data. A similar price dataset may also be used and may be posted by 
BOEM at boem.gov for reference.

------------------------------------------------------------------------
              Lease area name                   Wholesale power price
------------------------------------------------------------------------
A-2, OCS-A 0557...........................  PJM DPL.
C-1, OCS-A 0558...........................  PJM DOM.
------------------------------------------------------------------------

    c. Financial Assurance: Within ten business days after receiving 
the lease copies and pursuant to 30 CFR 585.515-.516, the provisional 
winner would be required to provide an initial lease-specific bond or 
other BOEM-approved

[[Page 86151]]

financial assurance instrument in the amount of $100,000. BOEM 
encourages the provisional winner to discuss financial assurance 
requirements with BOEM as soon as possible after the auction has 
concluded.
    BOEM would base the amount of all SAP, COP, and decommissioning 
financial assurance on cost estimates for meeting all accrued lease 
obligations at the respective stages of development. The required 
amount of supplemental and decommissioning financial assurance will be 
determined on a case-by-case basis.
    The financial terms described above can be found in Addendum ``B'' 
of the lease, which is available at: https://www.boem.gov/renewable-energy/state-activities/central-atlantic.

IX. Bidder's Financial Form

    Each bidder is required to provide the information listed in the 
BFF referenced in this PSN. A copy of the proposed form is available 
at: https://www.boem.gov/renewable-energy/state-activities/central-atlantic. BOEM recommends that each bidder designate an email address 
in its BFF that the bidder will use to create an account in https://www.pay.gov (if it has not already done so). BOEM will not consider 
previously submitted BFFs for previous lease sales to satisfy the 
requirements of this auction. BOEM may consider BFFs submitted after 
the deadline set in the FSN if BOEM determines that the failure to 
timely submit the BFF was caused by events beyond the bidder's control. 
The BFF is required to be executed by an authorized representative 
listed in the qualification package on file with BOEM.

X. Bid Deposit

    Each qualified bidder must submit a bid deposit no later than the 
date listed in the FSN. Typically, the deadline is approximately 30 
calendar days after the publication of the FSN. BOEM may consider 
extensions to this deadline only if BOEM determines that the failure to 
timely submit the bid deposit was caused by events beyond the bidder's 
control.
    Following the auction, bid deposits will be applied against the 
winning bid and other obligations owed to BOEM. If a bid deposit 
exceeds that bidder's total financial obligation, BOEM will refund the 
balance of the bid deposit to the bidder. BOEM will refund bid deposits 
to the unsuccessful bidders once BOEM has announced the provisional 
winners.
    If BOEM offers a lease to a provisional winner and that bidder 
fails to timely return the signed lease, establish financial assurance, 
or pay the balance of its bid, BOEM will retain the bidder's $5,000,000 
bid deposit for the Lease Area. In such a circumstance, BOEM reserves 
the right to offer a lease to the next highest bidder as determined by 
BOEM.

XI. Minimum Bid

    The minimum bid is the lowest 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 proposes a minimum bid of $100.00 per acre 
for this lease sale.

XII. Auction Procedures

    a. Multiple-Factor Bidding Auction: As authorized under 30 CFR 
585.220(a)(4) and 585.221(a)(6), BOEM proposes to use a multiple-factor 
auction format, with a multiple-factor bidding system, for this lease 
sale. Under BOEM's proposal, the bidding system for this lease sale 
would be a multiple-factor combination of monetary and non-monetary 
factors. The bid made by a particular bidder in each round would 
represent the sum of the monetary factor (cash bid) and the value of 
any non-monetary factors in the form of bidding credits. BOEM proposes 
to start the auction using the minimum bid price for the Lease Area and 
to increase prices incrementally until no more than one active bidder 
per Lease Area remains in the auction.
    BOEM is proposing to grant bidding credits to bidders that commit 
to one or both of the following:
    i. 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; or
    ii. 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 Central 
Atlantic.
    These bidding credits are intended to:
    i. Enhance, through training, the offshore wind workforce and/or 
enhance the establishment of a domestic supply chain for offshore wind 
manufacturing, assembly, or services, both of which will contribute to 
the expeditious and orderly development of offshore wind resources on 
the OCS;
    ii. Support the expeditious and orderly development of OCS 
resources by mitigating potential direct impacts from proposed projects 
and encouraging the investment in infrastructure germane to the 
offshore wind industry; and
    iii. Minimize potential economic effects on commercial fisheries 
impacted by potential offshore wind development, as cooperation with 
commercial fisheries impacted by OCS operations will enable development 
of the Lease Area to advance.
    b. Changes to Auction Rules: BOEM will be employing new auction 
software for the Central Atlantic lease sale. The auction format 
remains an ascending clock auction with multi-factor bidding. Three 
primary changes have been made to the ascending clock auction rules in 
the new software.
    The first change is that if a bidder decides to bid on a different 
Lease Area in a subsequent round of the auction, it will be allowed to 
submit an intra-round bid for the Lease Area it bid on in the previous 
round and, simultaneously, submit a bid for another Lease Area. This 
allows a bidder to possibly switch to another Lease Area if the price 
of the first Lease Area exceeds its specified intra-round bid price.
    The second change is that the determination of provisional winners 
will no longer use a two-stage process. The auction rules are 
implemented in a way such that, when the auction concludes, the bidder 
who remains on a Lease Area after the final round becomes its 
provisional winner. There will be no additional processing to determine 
if any other Lease Areas can be awarded to other bidders.
    The third change is that the upcoming auctions will use a `second 
price' rule. A given Lease Area will be won by the bidder that 
submitted the highest bid amount for the Lease Area, but the winning 
bidder will pay the highest bid amount at which there was competition 
(i.e., the `second price').
    All potential bidders should review the complete Auction Procedures 
for Offshore Wind Lease Sales (Version 1) located at: https://www.boem.gov/renewable-energy/lease-and-grant-information.
    c. The Auction: Using an online bidding system to host the auction, 
BOEM will start the bidding for the Lease Areas as described below.

----------------------------------------------------------------------------------------------------------------
                    Lease area name                        Lease area ID          Acres           Minimum bid
----------------------------------------------------------------------------------------------------------------
A-2....................................................          OCS-A0557            101,443        $10,144,300

[[Page 86152]]

 
C-1....................................................          OCS-A0558            176,505         17,650,500
----------------------------------------------------------------------------------------------------------------

    Each auction will be conducted in a series of rounds. Before each 
round, the auction system will announce a clock price for each Lease 
Area offered in the auction. In Round 1, the clock prices (also known 
as the `opening prices') are the minimum bid prices, and each bidder 
can bid for one Lease Area at those prices. After Round 1, the 
processed demand for a bidder is the Lease Area for which it bid in 
Round 1. After any round, if there is no processed demand for a bidder, 
the bidder's eligibility drops to zero, and the bidder can no longer 
bid in the auction.
    Starting in Round 2, each Lease Area is assigned a range of prices 
for the round. The start-of-round price is the lowest price in the 
range, and the clock price is the highest price in the range. A bidder 
still eligible to bid after the previous round can either continue 
bidding at the new round's clock price for the Lease Area for which the 
bidder's processed demand is one or submit a bid to exit (reduce demand 
for) that Lease Area at any price in the range for that round. A bid to 
reduce demand at some price indicates that the bidder is not willing to 
acquire that Lease Area at a price exceeding the specified bid price. A 
bidder that submits a bid to reduce demand for a Lease Area can 
optionally bid on another Lease Area. If an eligible bidder does not 
place a bid for that Lease Area during the round, the auction system 
will consider this a request to exit that Lease Area at the start-of-
round price.
    If an eligible bidder does not place a bid for that Lease Area 
during the round, the auction system will consider this a request to 
exit that Lease Area at the start-of-round price.
    After each round, the auction system processes the bids and 
determines each bidder's processed demand for each Lease Area and the 
posted prices for all the Lease Areas. The posted price is the price 
determined for each Lease Area after processing of all bids for a 
round. The posted price for a Lease Area in each round is the start-of-
round price for that Lease Area in the next round. Because of the `one-
per-customer' rule, a bidder will have at most one bid on one Lease 
Area.
    After the bids are processed, if each Lease Area has received one 
or fewer bids, the auction will end and each bidder on a Lease Area 
will become a provisional winner for that Lease Area. Otherwise, the 
auction will continue with a new round in which the start-of-round 
price for a Lease Area equals the posted price of the previous round.
    The provisional winners of the auction will pay the ``second 
price'' 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, post financial assurance, and submit the outstanding 
balance of its winning bid (i.e., winning monetary bid minus the 
applicable bid deposit and the value of bidding credits, as applicable) 
within ten business days of receiving the lease copies, pursuant to 30 
CFR 585.224. BOEM reserves the right to not issue the lease to the 
provisionally winning bidder if that bidder fails to: timely execute 
three copies of the lease and return them to BOEM, timely post adequate 
financial assurance, timely pay the balance of its winning bid, or 
otherwise comply with applicable regulations or the terms of the FSN. 
In any of these cases, the bidder will forfeit its bid deposit.
    BOEM will publish the names of 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, will be published on BOEM's website after a review of the results 
and announcement of the provisional winner.
    Additional Information Regarding the Auction Format:
    i. Authorized Individuals and Bidder Authentication: An entity that 
is eligible to participate in the auction will identify on its BFF up 
to three individuals who will be authorized to bid on behalf of the 
company, including their names, business telephone numbers, and email 
addresses. All individuals will log into the auction system using 
login.gov. Prior to the auction, all the individuals listed on the BFF 
form must obtain a FIDO-compliant security key,\2\ and must register 
this security key on login.gov using the same email address that was 
listed in the BFF. The login.gov registration, together with the FIDO-
compliant security key, will enable the individual to log into the 
auction website. BOEM will provide information on this process on its 
website.
---------------------------------------------------------------------------

    \2\ FIDO-keys are produced by many manufacturers, such as Yubico 
and Google. They are widely available and can easily be purchased 
from Amazon, Best Buy, Walmart, or any other seller of electronics. 
The latest generation of the FIDO standard is FIDO2, and you should 
obtain the key compliant with FIDO2 authentication standard. 
Depending on the computer you use, you might need to obtain an 
adapter as FIDO-keys require a USB port.
---------------------------------------------------------------------------

    After BOEM has processed the bid deposits, the auction contractor 
will send an email to the authorized individuals, inviting them to 
practice logging into the auction website on a specific day in advance 
of the mock auction. The login.gov login process, along with the 
authentication for the auction helpdesk, will also be tested during the 
mock auction.
    If an eligible bidder fails to submit a bid deposit or does not 
participate in the first round of the auction, BOEM will deactivate 
that bidder's login information.
    ii. Timing of Auction: The FSN will provide specific information 
regarding when bidders can enter the auction system and when the 
auction will start.
    iii. Messaging Service: BOEM and the auction contractors will use 
the auction platform messaging service to keep bidders informed on 
issues of interest during the auction. For example, BOEM could change 
the schedule at any time, including during the auction. If BOEM changes 
the schedule during an auction, it will use the messaging feature to 
notify bidders that a revision has been made and will direct bidders to 
the relevant page. BOEM will also use the messaging system for other 
updates during the auction.
    Bidders could place bids at any time during the round. At the top 
of the bidding page, a countdown clock shows how much time remains in 
each round. Bidders will have until the scheduled time to place bids. 
Bidders should do so according to the procedures described in the FSN 
and the Auction Procedures for Offshore Wind Lease Sales. Information 
about the round results will be made available only after the round has 
closed, so there is no strategic advantage to placing bids early or 
late in the round.
    The Auction Procedures for Offshore Wind Lease Sales will elaborate 
on the auction procedures described in this

[[Page 86153]]

PSN. In the event of any inconsistency between the Auction Procedures 
for Offshore Wind Lease Sales, the Bidder Manual, and the FSN, the FSN 
is 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 confirm during the Mock Auction that each authorized 
individual is able to access the auction system. A 4G card or other 
form of wireless access may prove helpful if the bidder's primary 
internet connection should fail. As a last resort, an authorized 
individual facing technical issues may request to submit its bid by 
telephone. 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. The caller must also explain the reasons why a telephone bid 
is necessary. 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. The auction help desk requires codes from 
the Google Authenticator app as part of its procedure for identifying 
individuals who call for assistance. Prior to the auction, all 
individuals listed on the BFF should download the Google 
Authenticator\TM\ mobile app \3\ onto their smartphone or tablet.\4\ 
The first time the individual logs into the auction system, the system 
will provide a QR token to be read into the Google Authenticator\TM\ 
app. This token is unique to the individual and enables the Google 
Authenticator\TM\ app to generate time-sensitive codes that will be 
recognized by the auction system. When an individual calls the auction 
help desk, the current code from the app must be provided to the help 
desk representative as part of the user authentication process. BOEM 
will provide information on this process on its website.
---------------------------------------------------------------------------

    \3\ Google Authenticator must be installed from either the Apple 
App Store or the Google Play Store.
    \4\ Installing the app is only required if the Google 
Authenticator is not already installed on the smartphone or tablet.
---------------------------------------------------------------------------

    d. 17.0 Percent Bidding Credit for Workforce Training or Supply 
Chain Development or a Combination of Both: This proposed bidding 
credit would allow a bidder to receive a credit of 17.0 percent 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 BFF Addendum and the lease. 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.
    e.
    i. As proposed, the Contribution to workforce training must result 
in a better trained and/or larger domestic offshore wind workforce that 
would 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 would not 
qualify.
    ii. The Contribution to domestic supply chain development must 
result in 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; and 
either: (i) the demonstrable development of new domestic capacity 
(including vessels) or the demonstrable buildout of existing capacity; 
or (ii) an improved offshore wind domestic supply chain by reducing the 
upfront capital or certification cost for manufacturing offshore wind 
components, including the building of facilities, the purchasing of 
capital equipment, and the certifying of existing manufacturing 
facilities.
    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 for which the lessee 
qualifies.
    iv. Bidders interested in obtaining a bidding credit could choose 
to contribute 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 would 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).
    v. As proposed, Contributions to workforce training would 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 areas involving 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 an Indian Economic Enterprise \5\ 
in skills necessary in the offshore wind industry; 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.
---------------------------------------------------------------------------

    \5\ https://www.bia.gov/sites/default/files/dup/assets/as-ia/ieed/Primer%20on%20Buy%20Indian%20Act%20508%20Compliant%202.6.18(Reload).p
df.
---------------------------------------------------------------------------

    vi. As proposed, 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; \6\ (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 or other equipment capable of lifting or moving foundations, 
towers, and

[[Page 86154]]

nacelles quayside, or lift cranes on vessels with these capabilities; 
(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 Indian Economic Enterprises; 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.
---------------------------------------------------------------------------

    \6\ Tier-1 denotes the primary offshore wind components such as 
the blades, nacelles, towers, foundations, and cables. Tier 2 
subassemblies are the systems that have a specific function for a 
Tier 1 component. Tier 3 subcomponents are commonly available items 
that are combined into Tier 2 subassemblies, such as motors, bolts, 
and gears.
---------------------------------------------------------------------------

    vii. Documentation: If a lease is issued pursuant to a winning bid 
that includes a bidding credit for workforce training or supply chain 
development, the lessee would be required to provide documentation 
showing that the lessee has met the financial commitment before the 
lessee submits the first FDR for the lease. 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 would need to include: all written 
agreements between the lessee and beneficiary(ies) of the Contribution, 
which 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 the 
beneficiary(ies) of the Contribution attesting that all information 
provided in the above documentation is true and accurate. The 
documentation would need 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 would need to contain any 
information called for in the Conceptual Strategy that the lessee 
submitted with its BFF and to allow BOEM to objectively verify (i) the 
amount of the Contribution and the beneficiary(ies) of the 
Contribution, and (ii) compliance with the bidding credit criteria 
provided in Addendum ``C'' of the lease. If the lessee's implementation 
of its Conceptual Strategy changes due to market needs or other 
factors, the lessee would need to explain the changed approach. BOEM 
would reserve all rights 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 would be 
made in the BFF and would be included in a lease addendum that would 
bind the lessee and all future assignees of the lease. If BOEM were to 
determine that a lessee or assignee had failed to satisfy the 
requirements of the bidding credit, or if a lessee were to relinquish 
or otherwise fail to develop the lease by the tenth anniversary date of 
lease issuance, the amount corresponding to the bidding credit awarded 
would be immediately due and payable to ONRR with interest from the 
lease Effective Date. The interest rate would be the underpayment 
interest rate identified by ONRR. The lessee would 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 
could, at its sole discretion, extend the documentation deadline beyond 
the first FDR submission or extend the lease development deadline 
beyond the 10-year timeframe.
    f. Eight percent Bidding Credit for Fisheries Compensatory 
Mitigation Fund: The second bidding credit proposed would allow a 
bidder to receive a credit of 8.0 percent of its bid in exchange for a 
commitment to establish and contribute to a fisheries compensatory 
mitigation fund, or to contribute to a similar existing fund, to 
compensate for potential negative impacts to commercial and for-hire 
recreational fisheries. The term ``commercial fisheries'' refers to 
commercial and processing businesses engaged in the act of catching and 
marketing fish and shellfish for sale from the Central Atlantic. The 
term ``for-hire recreational fisheries'' refers to charter and headboat 
fishing operations involving vessels-for-hire engaged in recreational 
fishing in the Central Atlantic 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, such as the initiative by eleven East 
Coast states to establish a regional fund that would provide financial 
compensation for economic loss from offshore wind development off the 
Atlantic Coast. At a minimum, the compensation must address the 
following:
    i. Gear loss or damage; and
    ii. Lost fishing income in Central Atlantic wind energy Lease 
Areas.
    The fisheries compensatory mitigation fund would 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 decommissioning of an offshore wind 
project being developed on Central Atlantic wind energy leases or 
easements. The fund must be established and the Contribution made 
before the lessee submits the lease's first FDR or before 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.
    (1) Bidders committing to use the fisheries compensatory mitigation 
fund bidding credit must submit their Conceptual Strategy along with 
their BFF, further described below and in the BFF Addendum. The 
Conceptual Strategy would describe the actions that the lessee intends 
to take that would allow BOEM to verify compliance when the lessee 
seeks to demonstrate satisfaction of the requirements for the bidding 
credit. The lessee would 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 before the fifth Lease Anniversary, whichever is sooner.
    (2) As proposed, gear loss, damage, and fishing income loss claims 
should 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 enough to recognize the 
multi-decade life of offshore wind projects in the Central Atlantic. 
While the fund's first priority is to compensate for gear loss or 
damage

[[Page 86155]]

and income loss, funds that have been determined to be excess based on 
an actuarial accounting may 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 upgrades and transitions for operating 
within a wind facility.
    Any fund established or selected by the lessee to meet this bidding 
credit requirement must include a process for evaluating the actuarial 
status of funds at least every five years and publicly reporting 
information on fund disbursement and administrative costs at least 
annually.
    (3) 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 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.
    (4) Documentation: As proposed, 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 before 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:
    a. 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);
    b. The fisheries compensatory mitigation fund charter, including 
the governance structure, audit and public reporting procedures, and 
standards for paying compensatory mitigation for impacts to fishers 
from development on wind energy Lease Areas in the Central Atlantic;
    c. All receipts documenting the amount, date, financial 
institution, and the account and owner of the account to which the 
Contribution was made; and
    d. Sworn statements by the entity that made the Contribution, 
attesting to:
    i. The amount and date(s) of the Contribution;
    ii. That the Contribution is being (or will be) used in accordance 
with the bidding credit requirements in the lease; and
    iii. 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. If the lessee's 
implementation of its Conceptual Strategy changes due to market needs 
or other factors, the lessee would need to explain this change. 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.
    (5) 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 were to determine 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, whichever is 
sooner, the amount corresponding to the bidding credit awarded would be 
immediately due and payable to ONRR with interest from the lease 
effective date. The interest rate would be the underpayment interest 
rate identified by ONRR. The lessee would not be required to pay said 
amount if the lessee satisfied its bidding credit requirements by the 
time the first FDR is submitted, or the fifth Lease Anniversary, 
whichever is sooner. BOEM may, at its sole discretion, extend the 
documentation deadline beyond the first FDR or beyond the 5-year 
timeframe.

XIII. Rejection or Non-Acceptance of Bids

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

XIV. Anti-Competitive Review

    Bidding behavior in this sale is subject to Federal antitrust laws. 
Following the auction, but before the acceptance of bids and the 
issuance of the lease, BOEM must ``allow the Attorney General, in 
consultation with the Federal Trade Commission, thirty days to review 
the results of [the] lease sale.'' 43 U.S.C. 1337(c)(1). If a 
provisional winner is found to have engaged in anti-competitive 
behavior in connection with this lease sale, BOEM may reject its 
provisionally winning bid. Compliance with BOEM's auction procedures 
and regulations is not an absolute defense against violations of 
antitrust laws.
    Anti-competitive behavior determinations are fact specific. 
However, such behavior may manifest itself in several different ways, 
including, but not limited to:
    a. An express or tacit agreement among bidders not to bid in an 
auction, or to bid a particular price;
    b. An agreement among bidders not to bid against each other; or
    c. Other agreements among bidders that have the potential to affect 
the final auction price.
    Pursuant to 43 U.S.C. 1337(c)(3), BOEM may decline to award a lease 
if the Attorney General, in consultation with the Federal Trade 
Commission, determines that awarding the lease may be inconsistent 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 and consult legal counsel.

XV. Process for Issuing the Lease

    Once all post-auction reviews have been completed to BOEM's 
satisfaction, BOEM will issue three unsigned copies of the lease to the 
provisional winner. Within ten business days after receiving the lease 
copies, the provisional winner must:
    a. Execute and return the lease copies on the bidder's behalf;
    b. File financial assurance, as required under 30 CFR 585.515-537; 
and
    c. Pay by electronic funds transfer (EFT) the balance of the 
winning bid (winning monetary bid minus the applicable bid deposit and 
value of bidding credit, as applicable). BOEM would require bidders to 
use EFT procedures (not https://www.pay.gov, the website bidders used 
to submit bid deposits) for payment of the balance of the bonus bid, 
following the detailed instructions contained the ``Instructions for 
Making Electronic Payments'' available on BOEM's website at: https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/EFT-Payment-Instructions.pdf.
    BOEM will not execute the lease until the three requirements above 
have been satisfied. BOEM may extend the 10-business-day deadline if 
BOEM determines the delay was caused by events beyond the provisional 
winner's control.

[[Page 86156]]

    If the provisional winner does not meet these requirements or 
otherwise fails to comply with applicable regulations or the terms of 
the FSN, BOEM reserves the right to not issue the lease to that bidder. 
In such a case, the provisional winner would forfeit its bid deposit. 
Also, in such a case, BOEM reserves the right to offer the lease to the 
next highest bidder as determined by BOEM.
    Within 45 calendar days after receiving the lease copies, the 
provisional winner must pay the first year's rent using the ``ONRR 
Renewable Energy Initial Rental Payments'' form available at: https://www.pay.gov/public/form/start/27797604/.
    Subsequent annual rent payments must be made following the detailed 
instructions contained in the ``Instructions for Making Electronic 
Payments,'' available on BOEM's website at: https://www.boem.gov/renewable-energy/state-activities/central-atlantic.

XVI. Non-Procurement Debarment and Suspension Regulations

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

XVII. Final Sale Notice

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

XVIII. Changes to Auction Details

    BOEM has the discretion to change any auction detail specified in 
the FSN, including the date and time, if events outside BOEM's control 
have been found to 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/central-atlantic. Bidders should call 
BOEM's Auction Manager at (703) 787-1121 if they have concerns.

XIX. Appeals

    The appeals and reconsideration procedures are provided in BOEM's 
regulations at 30 CFR 585.225 and 585.118(c). BOEM's decision on a bid 
is the final action of the Department, except that an unsuccessful 
bidder may apply for reconsideration by the Director under 30 CFR 
585.225 as follows:
    a. If BOEM rejects your bid, BOEM will provide a written statement 
of the reasons and will refund any money deposited with your bid, 
without interest.
    b. You may ask the BOEM Director for reconsideration, in writing, 
within 15 business days of bid rejection. The Director will send you a 
written response either affirming or reversing the rejection.

XX. Public Participation

    BOEM will make all comments publicly available on https://www.regulations.gov under the docket number and will consider each 
comment prior to publication of the FSN. BOEM does not consider 
anonymous comments; please include your name, address, and telephone 
number or email address as part of your comment. You should be aware 
that your entire comment, including your name, address, and any other 
personally identifiable information (PII) included in your comment, may 
be made publicly available at any time.
    For BOEM to consider withholding from disclosure your PII, you must 
identify, in a cover letter, any information contained in the submittal 
of your comments that, if released, would constitute a clearly 
unwarranted invasion of your personal privacy. You must also briefly 
describe any possible harmful consequences of the disclosure of 
information, such as embarrassment, injury, or other harm.
    Even if BOEM withholds your information in the context of this PSN, 
your comment is subject to the Freedom of Information Act (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.
    Note that BOEM will make available for public inspection, in their 
entirety, all comments submitted by organizations and businesses, or by 
individuals identifying themselves as representatives of organizations 
or businesses.

XXI. Protection of Privileged and Confidential Information

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

Elizabeth Klein,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2023-27200 Filed 12-11-23; 8:45 am]
BILLING CODE 4340-98-P