Gulf of Mexico Wind Lease Sale (GOMW-2) for Commercial Leasing for Wind Power on the Outer Continental Shelf Offshore in the Gulf of Mexico-Proposed Sale Notice, 20234-20247 [2024-05955]

Agencies

• DEPARTMENT OF THE INTERIOR
• Bureau of Ocean Energy Management

[Federal Register Volume 89, Number 56 (Thursday, March 21, 2024)]
[Notices]
[Pages 20234-20247]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-05955]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2024-0017]


Gulf of Mexico Wind Lease Sale (GOMW-2) for Commercial Leasing 
for Wind Power on the Outer Continental Shelf Offshore in the Gulf of 
Mexico--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 
Gulf of Mexico Wind Lease Sale (GOMW-2) for multiple lease areas (Lease 
Areas) using a multiple-factor bidding auction format. BOEM will use 
new auction software for the lease sale, resulting in changes to its 
previous auction rules. This Proposed Sale Notice (PSN) contains 
information pertaining to the areas available for leasing, certain 
lease provisions and conditions, auction details, lease forms, criteria 
for evaluating competing bids, award procedures, appeal procedures, and 
lease execution procedures. The issuance of any lease resulting from 
this sale would not constitute approval of project-specific plans to 
develop offshore wind energy. Such plans, if submitted by the Lessee, 
would be subject to subsequent environmental, technical, and public 
reviews prior to a BOEM decision whether or not to approve them.

DATES: Comments must be submitted electronically or postmarked received 
by BOEM no later than May 20, 2024. All comments received or postmarked 
during the comment period will be made available to the public and 
considered prior to publication of the Final Sale Notice (FSN).
    For prospective bidders who wish to participate in this lease sale: 
Unless you have received confirmation from BOEM that you are qualified 
to participate in the GOMW-2, BOEM must receive your qualification 
materials no later than May 20, 2024, and, prior to the auction, BOEM 
must confirm your qualification to bid in the auction.

ADDRESSES: Potential auction participants, Federal, State, and local 
government agencies, Tribal governments, and other interested parties 
are requested to submit written comments on the PSN in one of the 
following ways:
     Electronically: https://www.regulations.gov. In the search 
box, enter ``BOEM-2024-0017'' and click ``Search.'' Follow the 
instructions to submit public comments.
     Written Comments: Submit written comments in an envelope 
labeled ``Comments on GOMW-2 Lease Sale PSN'' and delivering them by 
U.S. mail or other delivery service to Bureau of Ocean Energy 
Management, Office of Leasing and Plans, 1201 Elmwood Park Boulevard, 
New Orleans, Louisiana 70123.
    Qualifications Materials: To qualify to participate in a lease sale 
following the publication of this PSN, qualification materials should 
be developed in accordance with the following guidelines (https://www.boem.gov/Renewable-Energy-Qualification-Guidelines/) and submitted 
to Renee Bigner, Bureau of Ocean Energy Management, Office of Leasing 
and Plans, 1201 Elmwood Park Boulevard, New Orleans, Louisiana 70123 or 
electronically to [email protected]. 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, ``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.

FOR FURTHER INFORMATION CONTACT: Renee Bigner, Bureau of Ocean Energy 
Management, Office of Leasing and Plans, 1201 Elmwood Park Boulevard, 
New Orleans, Louisiana 70123, (504) 736-7623 or [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    Request for Interest: On June 11, 2021, BOEM published a Request 
for Interest (RFI) for commercial leasing for wind power development on 
the Gulf of Mexico OCS. 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. BOEM received 39 comments from the general 
public; Federal, State and local agencies; the fishing industry; 
industry groups; developers; Non-Governmental Organizations (NGOs); 
universities; and other stakeholders. The subjects receiving the most 
comments were fisheries and marine mammals. Five developers submitted 
indications of interest for a commercial wind energy lease within the 
RFI Area in response to the RFI.
    Call for Information and Nominations: On November 1, 2021, BOEM 
published the Call for Information and Nominations--Commercial Leasing 
for Wind Power Development on the Outer Continental Shelf in the Gulf 
of Mexico.\1\ The Call Area comprised the area located seaward of the 
Gulf of Mexico Submerged Lands Act Boundary, bounded on the east by the 
north-south line located at -89.857[deg] W longitude, and bounded on 
the south by the 400-meter bathymetry contour and the U.S. Mexico 
Maritime Boundary established by the Treaty between the Government of 
the United States of America and the Government of the United Mexican 
States on the Delimitation of the Continental Shelf in the Western Gulf 
of Mexico beyond 200 Nautical Miles (U.S.-Mexico Treaty), which took 
effect in January 2001. BOEM received 40 comments from the general 
public, Federal, State, and local agencies, fishing industry, industry 
groups, developers, NGOs, universities, and other stakeholders. The 
subjects receiving the most comments were fisheries and marine mammals. 
Five developers nominated areas for a commercial wind energy lease 
within the Call Area in response to the Call.
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    \1\ https://www.boem.gov/83-FR-15602/.
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    GOMW-1 Area Identification: After the close of the Call comment 
period on December 16, 2021, BOEM initiated the Area Identification 
(Area ID) process by reviewing the input received to date. On July 20, 
2022, BOEM announced it was seeking public comments on two preliminary 
WEAs. The first WEA was located approximately 24 nautical miles (nm) 
off the coast of Galveston, TX, covered a total of 546,645 acres, and 
had the potential to power 2.3 million homes with clean wind energy. 
The second WEA was located approximately 56 nm off the coast of Lake 
Charles, LA, covered a total of 188,023 acres, and had the potential to 
power 799,000 homes. The public comment period was open for 30-calendar 
days.
    For purposes of recommending the Preliminary WEAs, BOEM considered

[[Page 20235]]

the following non-exclusive list of information sources: comments and 
nominations received on the RFI and Call; information from the GOM 
Intergovernmental Renewable Energy Task Force; input from Alabama, 
Mississippi, Louisiana, and Texas State agencies; input from Federal 
agencies, e.g., Department of Defense (DoD), and U.S. Coast Guard 
(USCG); comments from stakeholders and ocean users, including the 
maritime community, offshore wind developers, and the commercial 
fishing industry; State and local renewable energy goals; and 
information on domestic and global offshore wind market and 
technological trends.
    BOEM received ocean users' feedback requesting BOEM to consider 
using an existing ocean planning model previously used in the GOM for 
the National Oceanic and Atmospheric Administration's (NOAA) 
Aquaculture Opportunity Areas for ocean planning purposes. In response, 
BOEM used the ocean planning model to help support the identification 
of Preliminary WEAs.
    BOEM's process to identify Preliminary WEAs in the GOM was based on 
rigorous science, detailed in the ``A Wind Energy Area Siting Analysis 
for the Gulf of Mexico Call Area'' report (https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/GOM-WEA-Modeling-Report-Combined.pdf), to drive an informed, forward-looking, 
and sustainable industry to maximize operational efficiency and limit 
adverse interactions with other industries or natural resources. 
Additionally, BOEM's Gulf of Mexico Regional Office (GOMR) and the NOAA 
National Centers for Coastal Ocean Science (NCCOS) collaborated in 
using an ocean planning tool to identify Preliminary WEAs on the U.S. 
OCS in the GOM. Preliminary WEAs were identified, based on the best 
available science and through public engagement, to facilitate wind 
energy development; support environmental, economic, and social 
sustainability; and minimize resource use conflicts. The WEA process 
seeks to identify and minimize potential conflicts in ocean space as 
well as mitigate interactions with other users and adverse interactions 
with the environment; the NCCOS model is a tool to help support that 
effort.
    Planning and siting for the WEAs required thorough synthesis and 
spatial analyses of critical environmental data and ocean space use 
conflicts. BOEM used Geographic Information Systems (GIS) to integrate 
pertinent spatial data, perform analyses, and generate map-based 
products to inform where potential wind energy area(s) would be located 
within the Call Area. BOEM sought to identify wind energy areas in a 
manner that avoids or minimizes impacts on environmental resources. The 
use of this NCCOS model is one approach to meet that objective.
    BOEM has engaged in similar ocean planning efforts in other OCS 
Regions. Ocean planning processes often follow a standard workflow 
through (1) identification of the planning objective, (2) inventory of 
data, (3) geospatial analysis of data, (4) interpretation of results, 
and (5) delivery of map products and reports to decisionmakers and 
other ocean users. Spatial data are used to represent known or 
potential environmental and ocean space use conflicts that could 
constrain, or conditionally constrain, the siting of offshore wind 
facilities on the U.S. OCS. Using a multi-criteria decision approach 
allows for evaluation of numerous spatial data types for an area and 
provides a relative comparison of how suitable the areas are for 
offshore wind development. Additionally, natural and cultural 
resources, industry and operations, various fishing activities, 
logistics, economics, and national security are described and 
identified in the WEA model suitability analysis, which is discussed in 
detail in the Gulf of Mexico Wind Energy Area Modeling Report (https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/GOM-WEA-Modeling-Report-Combined.pdf).
    Additionally, WEA siting informed by ocean planning is helpful in 
avoiding and minimizing adverse environmental, social, and existing 
user interactions. Throughout the Area ID process, BOEM used existing 
datasets to facilitate discussions with ocean users to receive early 
feedback. BOEM incorporated the feedback from ocean users in the 
spatial and temporal planning strategies to allow initial compatibility 
to be assessed while also increasing the efficiency of meaningful 
communications within and among stakeholders and potentially with 
industry. The Preliminary WEAs resulting from this analysis are then 
considered by the decisionmaker to inform the siting of offshore wind.
    After the close of the Preliminary WEA comment period on September 
2, 2022, BOEM finalized the Area ID process by reviewing the input 
received from all stakeholders mentioned above.
    BOEM completed the Area ID on October 31, 2022, by identifying the 
following WEAs within the Call Area: Louisiana Coast Region (Lake 
Charles WEA) and the Texas Coast Region (Galveston WEA). The Area ID 
announcement and a map of the WEAs are available at: https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities.
    GOMW-2 Area Identification: Offshore wind developers requested that 
BOEM offer more acreage in the GOM east of Wind Energy Area (WEA) I for 
leasing. A GOMW-2 sale (combined with GOMW-1) would offer sufficient 
acreage for leasing to allow for robust development to help meet the 
State of Louisiana's goal of five GW of offshore wind. BOEM did not 
issue the GOMW-2 Preliminary WEAs for comment but, to maintain 
transparency, BOEM sought input from stakeholders through outreach. 
From June through August 2023, BOEM engaged with Federal partners, 
federally recognized Tribes, the affected States, as well as other 
stakeholders and ocean users, to solicit input and feedback on the 11 
remaining WEA Options. On August 2, 2023, BOEM held a ``round table'' 
meeting with major stakeholders to gather input and answer questions on 
wind development in the GOM and have continued the outreach and 
engagement conversations to date. BOEM considered and incorporated 
comments received into the recommendation of these Final WEAs. New data 
was solicited and reviewed from stakeholders, and BOEM determined that 
the NCCOS Model, finalized in May 2022, remains the best available 
model for deconflicting space use considerations. Substantive comments 
underscored the need to minimize potential impacts to the fisheries 
industry, consider USCG and DoD missions and potential concerns, and 
provide sufficient WEA acreage for economic viability. Based on this 
input, BOEM removed from consideration the WEAs with mid to high levels 
of potential shrimping impacts and WEA Options with less than 90,000 
acres, with the exception of WEA Option N. WEA Option N is being 
recommended as a final WEA based on potential economic viability due to 
its proximity to the existing Lake Charles lease area. Therefore, BOEM 
finalized WEAs J, K, L and N. WEA I, designated as a final WEA for 
GOMW-1, remains available for leasing.
    Environmental Reviews: 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

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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 completed consultations under the Endangered Species Act 
(ESA) and the Magnuson-Stevens Fishery Conservation and Management Act 
(MSFCMA). On July 20, 2022, BOEM issued a press release soliciting 
comments on the Draft EA. During the comment period, BOEM held two 
virtual public meetings, one on August 9, 2022, and another on August 
11, 2022. BOEM published the Final EA and Finding of No Significant 
Impact (FONSI) on May 26, 2023. These documents can be found at https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities. 
BOEM is also conducting environmental review, as well as consultation 
under the Coastal Zone Management Act (CZMA), prior to the GOMW-2 
auction. BOEM will conduct additional environmental reviews upon 
receipt of a Lessee's Construction and Operations Plan (COP) if one or 
more leases are issued and reach that stage of development. Offshore 
site assessment and site characterization activities proposed for the 
purpose of hydrogen, other than those covered in the GOM Wind Lease EA, 
will also be reviewed at a site-specific and on a case-by-case basis by 
BOEM. Lessees should coordinate with the BOEM Gulf of Mexico Regional 
Office before developing a survey plan.

II. Area Proposed for Leasing

    BOEM proposes four areas for the GOMW2 lease sale. The areas 
proposed for leasing will be auctioned as WEA I-1 Lease OCS-G37962, WEA 
I-2 Lease OCS-G37963, WEA J-1 Lease OCS-G37964, and WEA K-1 Lease OCS-
G37965. BOEM chose these lease areas as the most viable options due to 
their ranking in the suitability modeling, their proximity to shore, 
and stakeholder feedback.

------------------------------------------------------------------------
        Lease area name               Lease area ID            Acres
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WEA I-1........................  OCS-G 37962............         102,500
WEA I-2........................  OCS-G 37963............          96,786
WEA J-1........................  OCS-G 37964............         108,230
WEA K-1........................  OCS-G 37965............         102,544
                                                         ---------------
    Total......................  .......................         410,060
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    Descriptions of the proposed Lease Areas can be found in Addendum 
``A'' of the proposed leases, which BOEM has made available with this 
notice on its website at: https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities.
    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/gulf-mexico-activities.
    Potential Future Restrictions to Ensure Navigational Safety:
    USCG Navigational Safety Measures: Potential bidders should note 
that portions of the GOM may not be available for future development 
(i.e., installation of wind energy facilities) because of navigational 
safety concerns. The USCG recommends that BOEM add a 2-nautical mile 
(3704 meter) buffer around the shipping fairways. 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.
    Vessel Transit Corridors: Members of the fishing community have 
requested that offshore wind energy facilities be designed in a manner 
that, among other things, provides for safe transit to fishing grounds 
where relevant. The information currently available does not indicate 
that transit corridors are warranted, but BOEM may nonetheless consider 
designating portions of a lease as transit corridors. Bidders should be 
aware that BOEM may include a lease stipulation in the FSN that 
addresses transit corridors, pending the outcome of additional 
discussions with ocean users and stakeholders as well as consideration 
of comments submitted in response to this PSN.
    Potential Future Restrictions to Mitigate Potential Conflicts with 
Department of Defense Activities: Those interested in bidding should be 
aware of potential conflicts with existing uses of the OCS by DoD. BOEM 
coordinates with DoD throughout the leasing process.
    i. Air Surveillance and Radar: A DoD assessment was conducted on 
the Call Area by the Military Aviation and Installation Assurance 
Siting Clearinghouse. The North American Aerospace Defense Command 
mission may be affected by the development of the Lease Area(s). 
Considering both the expected heights of offshore turbines and future 
cumulative wind turbine effects, adverse impacts are potentially 
mitigatable through Radar Adverse-impact Management (RAM). For projects 
where RAM mitigation is acceptable, BOEM will include the following in 
any sale notification and project approval conditions:
    Lessee will notify NORAD 30-60 days ahead of project completion 
and, again, when the project is complete and operational for RAM 
scheduling;
    Lessee will contribute funds to DoD of no less than $80,000 toward 
the execution of the RAM for each radar system affected; and
    Curtailment 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. 
Mitigation measures or terms and conditions of a plan approval may 
result from this coordination effort.

III. Participation in the Proposed Lease Sale

    a. Bidder Participation: All entities who would like to participate 
in this proposed GOM lease sale 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,

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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 585.112.
    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, 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.

IV. Questions For Stakeholders

    Stakeholders are encouraged to comment on any matters related to 
this proposed lease sale that are of interest or concern to them. 
However, 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: In this PSN, BOEM proposes to offer four Lease Areas in the GOM. 
BOEM is seeking feedback on the proposed number, size, orientation, and 
location of the Lease Areas and welcomes comments on which Lease Areas, 
if any, should be prioritized for inclusion, or exclusion, from this 
lease sale.
    Considerations for the delineation of a Lease Area: These 
delineation considerations may include comparable commercial viability 
and size; prevailing wind direction and minimal wake effects; maximized 
energy generating potential; mooring system anchor footprints and 
extents; 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. Additional comments are welcome regarding other considerations 
for delineating Lease Areas.
    Transit corridors: BOEM welcomes comments on the potential need for 
including defined transit corridors within the proposed Lease Area and 
the degree to which such corridors might meet potential users' needs.
    Existing uses that may be affected by the development of the 
proposed Lease Areas: If transit corridors are warranted, what would be 
the preferred placement and orientation (length, width, etc.) that 
would facilitate continuance of existing uses? BOEM asks commenters to 
submit technical and scientific data in support of their comments.
    Benefits to underserved communities: Executive Order 13985, 
``Advancing Racial Equity and Support for Underserved Communities 
Through the Federal Government'' states ``the Federal Government should 
pursue a comprehensive approach to advancing equity for all, including 
people of color and others who have been historically underserved, 
marginalized, and adversely affected by persistent poverty and 
inequality.'' Executive Order 14008, ``Tackling the Climate Crisis at 
Home and Abroad'' states that in order ``to secure an equitable 
economic future, the United States must ensure that environmental and 
economic justice are key considerations in how we govern. That means 
investing and building a clean energy economy that creates well-paying 
union jobs, turning disadvantaged communities--historically 
marginalized and overburdened--into healthy, thriving communities, and 
undertaking robust actions to mitigate climate change while preparing 
for the impacts of climate change across rural, urban, and Tribal 
areas.''
    Consistent with its statutory and regulatory authorities, BOEM is 
considering lease stipulations to ensure that communities, particularly 
underserved communities, are considered and engaged early and often 
throughout the offshore wind energy development process; that potential 
impacts and benefits from lessees' projects are documented; and 
lessees' project proposals are informed by or altered to address those 
impacts and benefits.
    BOEM invites comments on the appropriate mechanisms and evaluation 
metrics of these additional lease requirements. Commenters are 
encouraged to describe how these, or similar measures, would further 
the development of the proposed Lease Areas and the purposes of 
subsection 8(p) of the Outer Continental Shelf Lands Act (OCSLA). BOEM 
requests that commenters provide references to any studies that support 
their recommendations.
    f. Bidding Credit for Workforce Training or Supply Chain 
Development: BOEM seeks comments on whether there are 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?
    g. Bidding Credit for Fisheries Compensatory Mitigation Fund: BOEM 
seeks comment on its proposal for a fisheries compensatory mitigation 
fund and the associated bidding credit.
    h. Native American Tribes, ocean users, and stakeholder engagement: 
In an effort to require early and regular lessee engagement with 
affected stakeholders, BOEM is proposing a lease stipulation that would 
require lessees to provide a semi-annual (i.e., every 6 months) 
progress report that summarizes engagement with Native American Tribes 
and ocean users potentially affected by proposed activities on the 
lease or proposed project easement. The progress report would identify 
and describe: all existing users; the lessee's engagement with

[[Page 20238]]

those users; efforts to avoid, minimize, or mitigate any conflict 
between the existing users and the lessee; disproportionate impacts to 
environmental justice communities; and planned next steps to engage 
those users and address identified conflicts. The lease stipulation 
specifically would require coordination with the commercial fishing 
industry and consideration of potential conflicts prior to proposing a 
wind turbine layout in the COP. BOEM seeks comment on this concept 
generally, as well as comment on the contents and timing of such 
reports.
    i. Coordinated engagement: BOEM seeks comments on other methods to 
improve coordination and engagement among lessees, federally recognized 
Tribes, and other stakeholders. Specifically, BOEM is soliciting input 
on how to improve the frequency, duration, and sustainability of 
collaborative engagement among these parties, as well as the preferred 
form it should take (in-person, webinar, facilitated meeting, etc.). 
BOEM recognizes its responsibility under Executive Order 13175 to 
conduct government-to-government consultations with Tribal governments. 
Coordinated engagement between federally recognized Tribes and lessees 
that may be required in a future lease would be in addition to BOEM's 
responsibilities. To illustrate the intent of this question, one 
possible lease term to facilitate coordinated engagement could be to 
require lessees to hold coordination meetings at regular intervals 
throughout the year (i.e., quarterly, biannually, annually, etc.). 
During these meetings, lessees would share information and updates 
about their activities with federally recognized Tribes and other 
stakeholders and solicit feedback and input about lessee activities. 
These meetings would not substitute for government-to-government 
meetings between Tribes and Federal agencies, including BOEM.
    j. Prescribed layouts: BOEM seeks comment about whether BOEM should 
consider prescribing uniform and aligned turbine layouts in the Lease 
Area. Would the establishment of uniform turbine layouts negate the 
need for established transit corridors?
    k. Removal of Limits on the Number of Lease Areas per Bidder: BOEM 
proposes to allow each qualified entity to bid on and potentially 
acquire as many Lease Areas as are offered in the GOMW-2 sale. In the 
Atlantic and Pacific OCS Regions, BOEM has often used a one-per-
customer rule so that more lessees will be competing for State clean 
energy offtake procurements. However, States adjacent to the GOM Lease 
Areas do not have statutory or enforceable offshore wind targets. 
Rather, offshore wind energy is more likely to be sold directly to 
large industrial customers or serve as the electricity source for 
hydrogen. Allowing lessees to win multiple lease areas may provide for 
economies of scale and more efficient development. BOEM is seeking 
feedback on the proposed unlimited eligibility on, and potential 
acquisition of, all four of the Lease Areas offered in the GOMW-2 sale.
    l. Industry standards for environmental protection: Are there new 
industry standards (e.g., new or improved technology, vessel design or 
operating procedures, etc.) for environmental protection during any 
phase of development that BOEM should consider?
    m. Production of Hydrogen on the Lease: BOEM has made revisions to 
the lease to explicitly include the production of hydrogen or other 
energy products using wind turbine generators on the lease. BOEM 
welcomes feedback on these changes and whether additional changes are 
necessary to fully accommodate hydrogen production.

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 May 20, 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.
    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/gulf-mexico-activities. No registration or RSVP is required to attend.
    Submit Qualifications Materials: For prospective bidders who want 
to participate in this lease sale: All qualification materials must be 
received by BOEM by May 20, 2024. This includes materials sufficient to 
establish a company's legal, technical, and financial qualifications 
pursuant to 30 CFR 585.107-.108. To qualify to participate in this 
lease sale, qualification materials would need to be developed in 
accordance with the guidelines available at https://www.boem.gov/Renewable-Energy-Qualification-Guidelines/.
    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 would be regarded by 
BOEM as suitable for public release.
    b. End of PSN Comment Period to FSN Publication:
    i. Review Comments: BOEM will review all comments submitted in 
response to the PSN during the comment period.
    Finalize Qualifications Reviews: Prior to the publication of the 
FSN, BOEM will complete any outstanding reviews of bidder 
qualifications materials submitted during the PSN comment period. The 
final list of qualified bidders will be published in the FSN.
    Prepare the FSN: BOEM will prepare the FSN by updating information 
contained in the PSN where appropriate.
    Publish FSN: BOEM will publish the FSN in the Federal Register at 
least 30 days before the date of the sale.
    c. FSN Waiting Period: During the period between FSN publication 
and the lease auction (i.e., a minimum of 30 days), qualified bidders 
are 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 would like to be considered. BOEM must receive each bidder's BFF 
no later than the date listed in the FSN. BOEM may consider extensions 
to this deadline only if BOEM determines that the failure to timely 
submit a BFF was caused by events beyond the bidder's control. The 
proposed BFF can be downloaded at: https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities.
    Once BOEM has processed a bidder's BFF, the bidder is allowed to 
log into pay.gov and submit a bid deposit. For purposes of this 
auction, BOEM will not

[[Page 20239]]

consider BFFs submitted by bidders for previous lease sales. An 
original signed BFF may be mailed to BOEM's GOM Regional Office for 
certification. A signed copy of the form may be submitted in PDF format 
to [email protected]. A faxed copy will not be accepted. Your 
BFF submission should be accompanied with a transmittal letter on 
company letterhead. 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). 
Additional information regarding the BFF may be found below in Section 
IX entitled ``Bidder's Financial Form.''
    Bid Deposit: Each qualified bidder must submit a bid deposit of 
$2,000,000 for one (1) Lease Area. If the FSN allows bidders to bid for 
and potentially win more than one Lease Area, each qualified bidder 
must submit a bid deposit of $2,000,000 per Lease Area. For example, if 
a qualified bidder wanted to bid on and potentially acquire four (4) 
Lease Areas, the bidder would need to submit a bid deposit of 
$8,000,000. 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 will notify each bidder of its determination of 
eligibility for bidding credits for each auction in which it 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. The 
Mock Auction is intended to give bidders an opportunity to clarify 
auction rules, test the functionality of the auction software, and 
identify any potential issues that may arise during the auction. 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 
days following the publication of the FSN in the Federal Register. The 
estimated timeframes described in this PSN assume that the auction will 
take place approximately 45 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 return their bid deposits.
    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).
    Delivery of the Lease: BOEM will send three lease copies to each 
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 winners 
receive the lease copies for execution.
    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 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).
    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.

VI. Withdrawal of Blocks

    BOEM reserves the right to withdraw all or portions of the Lease 
Areas prior to deciding whether to execute 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 leases are on BOEM's 
website at: https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities. 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'');
    Addenda ``A,'' ``B,'' and ``C'' provide detailed descriptions of 
proposed lease terms and conditions. Addendum ``D'' will be completed 
at the time of COP approval or approval with modifications. After 
considering comments on the PSN and proposed lease, BOEM will publish 
final lease terms and conditions in the FSN.
    Proposed Lease Stipulations: BOEM proposes to add or revise the 
following lease stipulations or provisions from previous commercial 
leases:
    i. Fisheries Communication Plan: A stipulation in the lease 
entitled ``Commercial Fisheries,'' which would contain components of 
stipulations in prior commercial leases issued by BOEM, including a 
requirement for a Fisheries Communications Plan (FCP). BOEM is 
proposing to add elements to this stipulation in response to its 
extensive engagement with Tribal governments, the fishing industry, and 
governmental agencies. Major proposed revisions include: (i) 
identifying dock space and transit routes that would minimize space use 
conflicts and potential impacts to protected species; (ii) minimizing 
both congestion and the creation of obstacles that could result in an 
increased risk of entanglement; and (iii) to the extent practicable, 
prioritizing Federal and State climate change adaptation strategies for 
fisheries.
    Native American Tribes Communication Plan: A revised NATCP 
requirement from the one included in previous commercial leases to 
require the Lessee to work with BOEM and the Gulf of Mexico to identify 
Tribes with cultural and/or historical ties to the Lease Areas and 
invite those Tribes to participate in the development of the NATCP. The 
NATCP would also include protocols for unanticipated discovery of any 
potential pre-contact archaeological resource(s).
    Protected Species: A requirement for the Lessees to coordinate with 
BOEM, 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.
    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, BOEM will require the Lessees to provide 
to the Lessor a copy of the authorization prior to commencing these 
activities.
    Site Characterization: An updated requirement regarding survey 
plans and

[[Page 20240]]

pre-survey meetings (subsection 2.1 of Addendum ``C'' to the proposed 
lease). BOEM proposes to make the pre-survey meeting between the lessee 
and BOEM optional at BOEM's discretion. BOEM also recommends removing 
the requirement for lessees to meet with BOEM prior to holding Tribal 
pre-survey meetings. This change would allow lessees more flexibility 
in scheduling Tribal pre-survey meetings, possibly holding them earlier 
and allowing greater opportunity for Tribal input.
    Siting Conditions: A lease stipulation that outlines situations 
when lessees may not construct surface facilities.
    Research Access: A stipulation that would make explicit BOEM's 
reservation of the right to access the lease area for purposes of 
future research and other activities.
    Project Labor Agreements and Supply Chain: Two lease stipulations 
that would encourage construction efficiency for projects and 
contribute towards establishing a domestic supply chain:
    The first stipulation would require Lessees to make every 
reasonable effort to enter into a Project Labor Agreement (PLA) 
covering the construction stage of any project proposed for the Lease 
Areas. The PLA provisions for the construction of an offshore wind 
project would apply to all contractors.
    The second stipulation would require the Lessee to establish a 
statement of goals in which the Lessee would describe its plans for 
contributing to the creation of a robust and resilient U.S.-based 
offshore wind industry supply chain. The Lessee would be required to 
provide regular progress updates on the achievement of those goals to 
BOEM, and BOEM would make those updates publicly available.
    BOEM includes these stipulations because it is committed to a clean 
energy future, workforce development and safety, and the establishment 
of a durable domestic supply chain that can sustain the U.S. offshore 
wind energy industry and wants to advance this vision.
    Stakeholder and Ocean User Engagement Summary: A requirement for 
the lessee to include a stakeholder and ocean user engagement summary 
as part of their progress reporting requirements (see subsection 3.1 of 
Addendum ``C'' of the lease). This summary would include a description 
of all existing users, engagement activities with those users during 
the reporting period, and a description of efforts to minimize any 
conflict between the existing users and the lessee.
    Confirmed Munitions of Concern (MEC)/Unexploded Ordnance (UXO) 
Notification: A stipulation in the lease that would require 
notification for confirmed MEC/UXO. Under this stipulation, the lessee 
would be required to notify BOEM, BSEE, and relevant agency 
representatives when a confirmed discovery is made.

VIII. Lease Financial Terms and Conditions

    This section provides an overview of the required annual payments 
and financial assurances under the lease. Please see the proposed lease 
for more 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 102,557 acres Lease Area of (OCS-G 0XXX), the rent payment would be 
$307,671 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.
    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 days of the commencement of commercial operations. 
Thereafter, subsequent annual operating fee payments will be due on or 
before the Lease Anniversary. If offshore wind energy is used to 
generate hydrogen or other energy products, the annual operating fee 
for electricity will continue to be calculated as provided in the lease 
as a proxy for the market value of hydrogen. Because there is currently 
a limited market for commercial hydrogen, the operating fee charged on 
the electricity generation will serve as a proxy for the energy 
products.
    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 purposes 
of this calculation, the imputed market value will be the product of 
the project's annual nameplate capacity, the total number of hours in 
the year (8,760), the capacity factor, and the annual average price of 
electricity derived from a regional wholesale power price index. For 
example, the annual operating fee for a 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 would be calculated as follows:
[GRAPHIC] [TIFF OMITTED] TN21MR24.007


[[Page 20241]]


    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 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.
    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.
    Capacity Factor: BOEM proposes to set the capacity factor at 0.3 
(i.e., 30 percent) for the year in which the commercial operations date 
occurs and for the first 6 years of commercial operations on the lease. 
At the end of the sixth year, BOEM may adjust the capacity factor to 
reflect the performance over the previous 5 years based upon the actual 
metered electricity generation at the delivery point to the electrical 
grid or where the electricity is used to generate hydrogen or other 
energy products. BOEM may make similar adjustments to the capacity 
factor once every 5 years thereafter.
    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 proposes to use the ERCOT (Texas Coast 
Region) average price per MW from the Enerfax power prices dataset 
within Hitachi's ABB Velocity Suite. A similar price dataset can also 
be used and may be posted by BOEM for reference.
    Financial Assurance: Within 10-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 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/gulf-mexico-activities.

IX. Bidder's Financial Form

    Each bidder would be required to provide the information required 
in the BFF referenced in this PSN. A copy of the proposed form is 
available at: https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities. BOEM recommends that each bidder designate an 
email address in its BFF that the bidder would then use to create an 
account in pay.gov (if it has not already done so). BOEM will not 
consider previously submitted BFFs for previous lease sales to satisfy 
the requirements of this auction. BOEM may consider BFFs submitted 
after the deadline set in the FSN if BOEM determines that the failure 
to timely submit the BFF was caused by events beyond the bidder's 
control. 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 would be required to submit a bid deposit no 
later than the date listed in the FSN. Typically, this deadline is 
approximately 30-calendar days after the publication of the FSN. BOEM 
may consider extensions to this deadline only if BOEM determines that 
the failure to timely submit the bid deposit was caused by events 
beyond the bidder's control.
    Following the auction, bid deposits will be applied against the 
winning bid and other obligations owed to BOEM. If a bid deposit 
exceeds that bidder's total financial obligation, BOEM will refund the 
balance of the bid deposit to the bidder. BOEM will refund bid deposits 
to the 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 would retain the bidder's 
$2,000,000 bid deposit for the Lease Area. In such a circumstance, BOEM 
reserves the right to offer a lease for that Lease Area to the next 
highest bidder as determined by BOEM.

XI. Minimum Bid

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

XII. Auction Procedures

    a. Multiple-Factor Bidding Auction: As authorized under 30 CFR 
585.220(a)(4) and 585.221(a)(6), BOEM proposes to use a multiple-factor 
auction format 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 Areas and to increase these prices incrementally until 
only one bidder remains bidding on each Lease Area 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 Gulf of 
Mexico.
    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.
    Changes to Auction Rules: BOEM will be employing new auction 
software for sales held in 2024. The auction format remains an 
ascending clock auction with multiple-factor bidding. Five primary 
changes have been made to the ascending clock auction rules in the new 
software.
    i. If a bidder decides to bid on a different Lease Area in a 
subsequent

[[Page 20242]]

round of the auction, it may submit a 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 the option to switch to another Lease 
Area if the price of the first Lease Area exceeds the specified bid 
price.
    ii. Provisional winners will no longer be determined using a two-
step 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 whether any other Lease Areas can be 
awarded to other bidders.
    iii. The auction 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'').
    iv. If the FSN allows bidders to bid for and potentially acquire 
two or more Lease Areas, any bid for two or more Lease Areas will be 
treated as independent bids for those Lease Areas, rather than as a 
package bid.
    v. Each bidder's bidding credit will be expressed directly as a 
percentage of the final price for the lease.
    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.
    The Auction: Using an online bidding system to host the auction, 
BOEM would start the bidding for Leases OCS-G 37962 through 37965 as 
described below.

----------------------------------------------------------------------------------------------------------------
                Lease area name                             Lease area ID                Acres      Minimum bid
----------------------------------------------------------------------------------------------------------------
Lease I-1.....................................  OCS-G 37962..........................    102,500      $5,125,000
Lease I-2.....................................  OCS-G 37963..........................     96,786       4,839,300
Lease J-1.....................................  OCS-G 37964..........................    108,230       5,411,500
Lease K-1.....................................  OCS-G 37965..........................    102,544       5,127,200
----------------------------------------------------------------------------------------------------------------

    BOEM is proposing to allow each qualified bidder to bid for and 
potentially acquire as many Lease Areas as are offered in the GOMW-2 
sale. The possible alternatives to the proposed unlimited eligibility 
would be a specified limit on the number of Lease Areas in each region 
that a bidder can bid for and potentially win, or a specified overall 
limit on the number of Lease Areas in the GOMW-2 sale that a bidder can 
bid for and potentially win.
    The auction will be conducted in a series of rounds. Before each 
round, the auction system will announce the prices for each Lease Area 
offered in the auction. In Round 1, there is a single price for each 
Lease Area equal to the minimum bid price (also known as the `opening 
price' or `clock price of Round 1'). Each bidder can bid, at the 
opening prices, for as many Lease Areas as allowed by the FSN and the 
bidder's bid deposit. After Round 1, the bidder's processed demand is 
one for each Lease Area for which the bidder bid in Round 1. The 
bidder's eligibility for Round 2 equals the number of Lease Areas for 
which the bidder bid in Round 1.
    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(s) for the same Lease Area(s) 
for which the bidder's processed demand is one or submit bid(s) to 
reduce demand for one (or more) Lease Area(s) at any price(s) in the 
range(s) 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 bids to reduce demand 
for Lease Areas can optionally bid on up to the same number of other 
Lease Areas.
    If an eligible bidder does not place a bid during the round for the 
Lease Area for which the bidder's processed demand is one, the auction 
system will consider this a request to reduce demand for that Lease 
Area at the round's start-of-round price.\2\ That bidder can 
nonetheless win that Lease Area if it is the last remaining bidder for 
that Lease Area.
---------------------------------------------------------------------------

    \2\ When the round ends and the bidder still has not placed a 
bid, the system will process the bid as if the bidder is asking to 
leave that lease area at any price above the start-of-round price 
for that lease area that it previously bid on.
---------------------------------------------------------------------------

    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 the Lease Areas. The bidder's eligibility for the 
next round would equal the number of Lease Areas for which the bidder 
had a processed demand of one. If, after any round, a bidder's 
processed demand is zero for every Lease Area, the bidder's eligibility 
drops to zero and the bidder can no longer bid in the auction. The 
posted price is the price determined for each Lease Area after 
processing of all bids for a round. If only one bidder remains on a 
Lease Area, the posted price reflects the ``second price'' (i.e., the 
highest price at which there was competition for the Lease Area).\3\
---------------------------------------------------------------------------

    \3\ The Auction Procedures for Offshore Wind Lease Sales 
provides details on how bids are prioritized and processed.
---------------------------------------------------------------------------

    The posted price for a Lease Area after each round becomes the 
start-of-round price for that Lease Area in the next round.
    If, after the bids for the round have been processed, there is no 
Lease Area with excess demand, the auction will end. When this occurs, 
each bidder with a processed demand of one for a Lease Area will become 
the provisional winner for that Lease Area. Otherwise, the auction will 
continue with a new round in which the start-of-round price for each 
Lease Area equals the posted price of the previous round.
    The increment by which the clock price exceeds the start-of-round 
price 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 the increment as it deems appropriate.
    The provisional winner of each Lease Area will pay the final posted 
price (less any applicable bidding credit), or risk forfeiting its bid 
deposit. 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 (if any) of its winning bid (i.e., winning monetary bid minus 
the applicable bid deposit and the value of bidding credits, as 
applicable) within 10-business days of receiving the lease copies, 
pursuant to 30 CFR 585.224. BOEM reserves the

[[Page 20243]]

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 and BOEM reserves the right to offer a 
lease to the next highest eligible bidder as determined by BOEM.
    BOEM will publish the names of the provisional winners of the Lease 
Areas and the associated prices 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 Fast Identify Online (FIDO) compliant security 
key,\4\ 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.
---------------------------------------------------------------------------

    \4\ 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 the 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 process 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.
    iv. Bidding Rounds: Bidders are allowed to place bids or to change 
their bids at any time during the bidding round. At the top of the 
bidding page, a countdown clock shows how much time remains in each 
round. Bidders will have until the end of the round 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 
elaborate on the auction procedures described in this 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.
    Alternate Bidding Procedures: Redundancy is the most effective way 
to mitigate technical and human issues during an auction. BOEM strongly 
recommends that bidders 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 mobile hotspot or 
other form of wireless access is helpful in case a company's main 
internet connection should fail. As a last resort, an authorized 
individual facing technical issues may request to submit its bid by 
telephone. In order to be authorized to place a telephone bid, an 
authorized individual must call the help desk number listed in the 
auction manual before the end of the round. BOEM will authenticate the 
caller's identity, including requiring the caller to provide a code 
from the software token. The caller must also explain the reasons why a 
telephone bid needs to be submitted. BOEM may, in its sole discretion, 
permit or refuse to accept a request for the placement of a bid using 
this alternate telephonic bidding procedure. The auction help desk 
requires codes from the Google Authenticator application (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 \5\ onto their smartphone or 
tablet.\6\ The first time the individual logs into the auction system, 
the system will provide a QR token to be read into the Google 
Authenticator app. This token is unique to the individual and enables 
the Google Authenticator 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.
---------------------------------------------------------------------------

    \5\ Google Authenticator must be installed from either the Apple 
App Store or the Google Play Store.
    \6\ Installing the app is only required if the Google 
Authenticator is not already installed on the smartphone or tablet.
---------------------------------------------------------------------------

    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 of the final 
posted price of the Lease Area 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.
    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

[[Page 20244]]

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 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.
    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; \7\ (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 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.
---------------------------------------------------------------------------

    \7\ 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 the Office of Natural Resources 
Revenue

[[Page 20245]]

(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.
    8.0 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 the final posted price of the Lease 
Area 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 
Gulf of Mexico. The term ``for-hire recreational fisheries'' refers to 
charter and head-boat fishing operations involving vessels-for-hire 
engaged in recreational fishing in the Gulf of Mexico 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 which would provide 
financial compensation for economic loss from offshore wind development 
in the Gulf of Mexico. At a minimum, the compensation must address the 
following:
    Gear loss or damage; and
    Lost fishing income in Gulf of Mexico 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 would be 
required to cover impacts that result directly from the 
preconstruction, construction, operations and decommissioning of an 
offshore wind project being developed on Gulf of Mexico wind energy 
leases or easements. The fund would be required to 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 would be required to 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 Gulf of Mexico. 
While the fund's first priority is to compensate for gear loss or 
damage 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 would be required to include a process for 
evaluating the actuarial status of funds at least every 5 years and 
publicly reporting information on fund disbursement and administrative 
costs at least annually.
    (3) The fisheries compensatory mitigation fund would be required to 
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 would be required to 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 would 
be required to 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 would be required to 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 Gulf of Mexico;
    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 would be required to 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

[[Page 20246]]

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:
    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 against each other; or
    3. 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/business-resources and consult 
legal counsel.

XV. Process for Issuing the Lease

    Once all post-auction reviews have been completed to BOEM's 
satisfaction, BOEM will issue three unsigned copies of the lease to the 
provisional winner. Within 10-business days after receiving the lease 
copies, the provisional winner must:
    1. Execute 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 winning bid (winning monetary bid minus the applicable bid 
deposit). BOEM would require bidders to use EFT procedures (not 
pay.gov, the website bidders used to submit bid deposits) for payment 
of the balance of the winning bid, following the detailed instructions 
contained in 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.
    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 not to 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 eligible 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/gulf-mexico-activities.

XVI. Non-Procurement Debarment and Suspension Regulations

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

XVII. Final Sale Notice

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

XVIII. Changes to Auction Details

    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/gulf-mexico-activities. 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:
    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.
    You may ask the BOEM Director for reconsideration, in writing, 
within 15-business days of bid rejection, under 30 CFR 585.118(c)(1). 
The Director will

[[Page 20247]]

send you a written response either affirming or reversing the 
rejection.

XX. Public Participation

    BOEM does not consider anonymous comments; please include your name 
and address as part of your comment. You should be aware that your 
entire comment, including your name, address, and any other personally 
identifiable information (PII) included in your comment, may be made 
publicly available at any time. In order for BOEM to consider 
withholding your PII from disclosure, you must identify, in a cover 
letter, any information contained in 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, such as embarrassment, injury, or other 
harm.
    Even if BOEM withholds your information in the context of this PSN, 
your submission is subject to the Freedom of Information Act (FOIA). If 
your comment is requested under 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 all 
comments, except for identified privileged or confidential information, 
submitted by organizations and businesses, or by individuals 
identifying themselves as representatives of organizations or 
businesses.

XXI. Protection of Privileged or Confidential Information

    BOEM will protect privileged or confidential information that you 
submit consistent with the Freedom of Information Act (FOIA) and 30 CFR 
585.114. 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 your comments or 
qualification information, clearly mark the relevant sections 
``Contains Privileged or Confidential Information'' and request that 
BOEM treat the information as confidential. You should consider 
submitting such information as a separate attachment. BOEM will not 
disclose such information, except as required by FOIA. Information that 
is not labeled as privileged or confidential may be regarded by BOEM as 
suitable for public release. Further, BOEM will not treat as 
confidential aggregate summaries of otherwise non-confidential 
information.
    a. Access to Information (54 U.S.C. 307103): BOEM is required, 
after consultation with the Secretary of the Interior, to withhold the 
location, character, or ownership of historic resources if the 
Secretary and the agency determine that disclosure may, among other 
things, cause a significant invasion of privacy, risk harm to the 
historic resources, or impede the use of a traditional religious site 
by practitioners. Tribal entities and other interested parties should 
designate information that they would like 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. 2024-05955 Filed 3-20-24; 8:45 am]
BILLING CODE 4340-98-P