[Federal Register Volume 77, Number 23 (Friday, February 3, 2012)]
[Notices]
[Pages 5545-5552]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-2516]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2011-0093]


Commercial Leasing for Wind Power Development on the Outer 
Continental Shelf (OCS) Offshore Virginia--Call for Information and 
Nominations

AGENCY: Bureau of Ocean Energy Management (BOEM), Interior.

ACTION: Call for Information and Nominations.

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SUMMARY: BOEM invites submissions of nominations from parties 
interested in obtaining one or more commercial leases that would allow 
a lessee to propose the construction of a wind energy project(s) on the 
OCS offshore Virginia. Although the publication of this notice is not 
itself a leasing announcement, the area described herein may be subject 
to future leasing. BOEM will use the response to this Call for 
Information and Nominations (Call) to gauge specific interest in the 
acquisition of commercial wind lease(s) in some or all of the area and 
to determine whether competitive interest exists in any particular 
area, as required by 43 U.S.C. 1337(p)(3). Parties wishing to submit a 
nomination in response to this Call should submit detailed and specific 
information as described in the section entitled, ``Required Nomination 
Information.''
    BOEM also requests comments from interested and affected parties 
regarding site conditions, resources, and multiple uses of the 
identified area that would be relevant to BOEM's review of the 
nominations submitted and any subsequent decision concerning whether to 
offer all or part of the area for commercial wind leasing. Information 
that BOEM is requesting is described in the section entitled, 
``Requested Information from Interested or Affected Parties.''
    This notice is published pursuant to subsection 8(p)(3) of the OCS 
Lands Act (43 U.S.C. 1337(p)(3)), which was added by section 388 of the 
Energy Policy Act of 2005 (EPAct), as well as the implementing 
regulations at 30 CFR part 585.
    The Call Area described in this notice is located on the OCS 
offshore Virginia. The western edge of the Call Area is approximately 
23.5 nautical miles (nmi) from the Virginia Beach coastline, and 
extends to an eastern edge that is approximately 36.5 nmi from the same 
location. The longest north/south portion is approximately 10.5 nmi in 
length and the longest portion of the east/west portion is 
approximately 13 nmi in length. The area is made up of 19 whole OCS 
blocks and 13 sub-blocks. The entire area is approximately 112,799 
acres, or 45,648 hectares. This area was delineated in consultation 
with the BOEM Virginia Renewable Energy Task Force. A detailed 
description of the area is presented later in this notice.

DATES: BOEM must receive your nomination describing your interest in 
this potential leasing area postmarked by March 19, 2012. BOEM will 
consider only those nominations received or postmarked by then. 
Submissions of comments or other submissions of information are also 
requested by this date.
    Submission Procedures: If you are submitting a nomination for a 
commercial lease in response to this Call, please submit your 
nomination by mail to the following address: Bureau of Ocean Energy 
Management, Office of Renewable Energy Programs, 381 Elden Street, HM 
1328, Herndon, Virginia 20170-4817. In addition to a paper copy of the 
nomination, include an electronic copy of the nomination on a compact 
disc (CD). Nominations must be postmarked by March 19, 2012. BOEM will 
list the parties that submitted nominations and the location of the 
proposed lease areas (OCS blocks they nominated) on the BOEM Web site 
after the 45-day comment period closes.
    Comments and other submissions of information may be submitted by 
either of the following two methods:
    1. Federal eRulemaking Portal: http://www.regulations.gov. In the 
entry titled ``Enter Keyword or ID,'' enter BOEM-2011-0093, then click 
``search.'' Follow the instructions to submit public comments and view 
supporting and related materials available for this notice.
    2. By U.S. Postal Service or other delivery service, sending your 
comments and information to the following address: Bureau of Ocean 
Energy Management, Office of Renewable Energy Programs, 381 Elden 
Street, HM 1328, Herndon, Virginia 20170-4817.
    All responses will be reported on http://www.regulations.gov.
    If you wish to protect the confidentiality of your nominations or 
comments, clearly mark the relevant sections and request that BOEM 
treat them as confidential. Please label privileged or confidential 
information ``Contains Confidential Information'' and consider 
submitting such information as a separate attachment. Treatment of 
confidential information is addressed in the section of this Call 
entitled, ``Protection of Privileged or Confidential Information.'' 
Information that is not labeled as privileged or confidential will be 
regarded by BOEM as suitable for public release.

FOR FURTHER INFORMATION CONTACT: Ms. Erin C. Trager, Project 
Coordinator, BOEM, Office of Renewable Energy Programs, 381 Elden 
Street, HM 1328, Herndon, Virginia 20170-4817, (703) 787-1320, or 
[email protected].

SUPPLEMENTARY INFORMATION: 

Purpose of the Call for Information and Nominations

    The OCS Lands Act requires BOEM to award leases competitively, 
unless BOEM makes a determination that there is no competitive interest 
(43 U.S.C. 1337(p)(3)). The issuance of this Call is not intended to 
indicate that BOEM has determined that competitive interest exists in 
the area identified. Rather, this notice is the first step in the 
renewable energy leasing process offshore Virginia and the responses to 
it will assist BOEM in determining whether competitive interest exists 
in the area. This notice also requests information from interested and 
affected parties on issues relevant to BOEM's review of nominations for 
potential leasing in the area.
    BOEM is issuing a Call instead of a Request for Interest (RFI) to 
facilitate and expedite the leasing process consistent with the goals 
and objectives of the Secretary of the Interior's ``Smart from the 
Start'' initiative. If an RFI were issued and the responses to it 
indicated competitive interest, the applicable regulations would 
require BOEM to issue a Call, which BOEM believes would be duplicative 
of the RFI process. Issuance of this Call, without an RFI, is designed 
to enable BOEM to obtain and analyze the information needed to support 
consideration of appropriate commercial leasing, while ensuring ample 
opportunity for input from interested and affected parties.
    The responses to this Call could lead to the initiation of a 
competitive leasing process in some areas of the Call Area (i.e., where 
competition exists for certain tracts), and a noncompetitive process in 
others (i.e., where no competitive interest exists for certain tracts). 
The leasing process is described more completely under ``Competitive 
Leasing Process'' and ``Noncompetitive Leasing Process'' below. If BOEM 
determines that there is no competitive interest in some or all of this 
area offshore Virginia, BOEM may proceed with the noncompetitive lease 
process

[[Page 5546]]

pursuant to 30 CFR 585.232 for any area(s) for which no competitive 
interest exists. If BOEM determines that there is competitive interest 
in some or all of the area described in this Call, BOEM may proceed 
with the competitive leasing process set forth under 30 CFR 585.211(c) 
through 585.225. Whether the leasing process is competitive or 
noncompetitive, BOEM will (1) provide additional opportunities for the 
public to submit input; and (2) review proposed leases thoroughly for 
potential environmental and multiple use impacts. A lease, whether 
issued through a competitive or non-competitive process, gives the 
lessee the exclusive right to subsequently seek BOEM approval for the 
development of the leasehold. The lease does not grant the lessee the 
right to construct any facilities; rather, the lease grants the right 
to use the leased area to develop its plans, which BOEM must approve 
before the lessee may proceed to the next stage of the process. See 30 
CFR 585.600 and 585.601. The area that may be offered for leasing, if 
any, has not yet been determined and may be reduced further from the 
area identified in this Call based on various factors.

Background

Energy Policy Act of 2005 (EPAct)

    The EPAct amended the OCS Lands Act by adding subsection 
8(p)(1)(c), which authorizes the Secretary of the Interior to grant 
leases, easements, or rights-of-way (ROWs) on the OCS for activities 
that are not otherwise authorized by law and that produce or support 
the production, transportation, or transmission of energy from sources 
other than oil or gas. Subsection 8(p) requires the Secretary to issue 
regulations to carry out the new energy development authority on the 
OCS. The Secretary delegated the authority to issue leases, easements, 
and ROWs, and to promulgate regulations to the Director of BOEM. On 
April 29, 2009, BOEM promulgated the Renewable Energy and Alternate 
Uses (REAU) rule, 30 CFR Part 585, which can be found at: http://www.boem.gov/Renewable-Energy-Program/Regulatory-Information/Index.aspx#Rules_Development.

BOEM Virginia Renewable Energy Task Force

    BOEM formed the BOEM Virginia Renewable Energy Task Force in 
December 2009 to facilitate coordination among relevant Federal 
agencies and affected state, local, and tribal governments throughout 
the leasing process. The BOEM Virginia Renewable Energy Task Force 
meeting materials are available on the BOEM Web site at: http://www.boem.gov/Renewable-Energy-Program/State-Activities/Virginia.aspx

Executive Order 13547: Stewardship of the Ocean, Our Coasts, and the 
Great Lakes

    On July 19, 2010, the President signed an Executive Order 
establishing a national ocean policy and the National Ocean Council (75 
FR 43023). The Order establishes a comprehensive, integrated national 
policy for the stewardship of the ocean, our coasts and the Great 
Lakes. Where BOEM actions affect the ocean, the Order requires BOEM to 
take such action as necessary to implement this policy, to adhere to 
the stewardship principles and national priority objectives adopted by 
the Order, and follow guidance from the National Ocean Council.
    BOEM appreciates the importance of coordinating its planning 
endeavors with other OCS users and regulators. It intends to follow 
principles of coastal and marine spatial planning, and coordinate with 
the regional planning bodies as established by the National Ocean 
Council, to inform its leasing processes. BOEM anticipates that 
continued coordination with the state Renewable Energy Task Forces will 
help inform comprehensive coastal and marine spatial planning efforts.

Actions Taken by the Commonwealth of Virginia in Support of Renewable 
Energy Development

    The Commonwealth of Virginia has taken important steps to encourage 
and incentivize offshore wind energy development. While a state may 
promote such development through activities such as the creation of 
financial incentives, an offshore wind project cannot be developed on 
the OCS without an OCS renewable energy lease issued by BOEM pursuant 
to 30 CFR Part 585 and subsequent BOEM approval of a Construction and 
Operations Plan (COP). Below is a description of the activities that 
the state has undertaken to support renewable energy development on the 
OCS off its coast.
     In September 2007, Virginia established a 10-Year Energy 
Plan, the purpose of which was to chart a path forward to provide for 
reliable energy supplies at reasonable rates and increase the use of 
energy efficiency measures in Virginia.
     In a separate chapter of the same state legislation that 
established the Virginia Energy Plan, the General Assembly created the 
Virginia Coastal Energy Research Consortium (VCERC), which originally 
consisted of five state universities, two state agencies, and two 
industry organizations. VCERC was created to serve as an 
interdisciplinary research, study, and information resource for the 
state on Virginia's coastal energy resources, including offshore wind. 
For more information about VCERC visit www.vcerc.org.
     In February 2008, the Commonwealth of Virginia submitted a 
nomination to BOEM for a four-block area under the BOEM Interim Policy 
(72 FR 62673 (Nov. 6, 2007)) for authorization of the installation of 
offshore data collection and technology testing facilities on the OCS. 
These four blocks were contained within a surrounding ocean space of 50 
lease blocks that were then under study by VCERC. Virginia was not 
selected as a priority area by DOI under the Interim Policy; therefore, 
this nomination was not selected for leasing consideration.
     In September 2009, former Governor Timothy M. Kaine sent a 
letter to BOEM requesting the formation of an intergovernmental 
Renewable Energy Task Force to facilitate communication and 
coordination among Federal, state, local, and tribal government 
agencies for OCS renewable energy activities off Virginia and to inform 
the Federal leasing and lease development process. The BOEM Virginia 
Renewable Energy Task Force was formed in December 2009.
     In April 2010, Governor Robert F. McDonnell signed 
legislation to reward investor-owned electric utilities for using 
offshore wind energy over other forms of energy. The legislation 
provides for an investor-owned electric utility to receive triple 
credit toward meeting the goals of the renewable energy portfolio 
standard program for energy derived from offshore wind. This 
legislation also created the Virginia Offshore Wind Development 
Authority for the purposes of facilitating, coordinating, and 
supporting the development of the offshore wind energy industry, 
offshore wind energy projects, and associated supply chain vendors.
     In January 2011, the Virginia Department of Mines, 
Minerals, and Energy (DMME) submitted a draft unsolicited research 
lease application to BOEM under 30 CFR Part 585.238. Proposed 
activities included the construction of meteorological towers for early 
mapping of the offshore wind resource in the Call Area and the 
installation of research turbines for demonstrating reliability and 
survivability. In January 2011, Governor Robert F. McDonnell sent BOEM 
a letter supporting DMME's efforts to obtain a

[[Page 5547]]

research lease. The DMME finalized its application in September 2011. 
More information about the Commonwealth's proposed research activities 
can be found in the section of this Call entitled ``Research Lease 
Application.''

The ability of private developers to take advantage of Virginia's 
incentives for potential projects on the OCS offshore Virginia would be 
dependent on, among other things, the developers obtaining leases and 
subsequent approvals from BOEM for their proposed projects on the OCS.

Department of the Interior ``Smart From the Start'' Atlantic Wind 
Initiative

    The Secretary of the Interior, Ken Salazar, announced the ``Smart 
from the Start'' OCS renewable energy initiative on November 23, 2010. 
This initiative includes three key elements: (1) Eliminating a 
redundant step from the REAU rule; (2) identifying Wind Energy Areas 
(WEA) to be analyzed in an environmental assessment (EA) (prepared 
pursuant to the National Environmental Policy Act (NEPA) (42 U.S.C. 
4321 et seq.)) for the purpose of supporting lease issuance and site 
assessment activities; and (3) proceeding on a parallel track to 
process offshore transmission proposals.
    A WEA is an OCS area that appears to be suitable for commercial 
wind energy leasing. The Virginia WEA was delineated based on 
deliberation and consultation with the BOEM Virginia Renewable Energy 
Task Force and was selected to be evaluated in a regional EA. A map 
showing the WEA can be found on the BOEM Web site at: http://www.boem.gov/Renewable-Energy-Program/Smart-from-the-Start/Index.aspx.
    As described in the section of this notice entitled, ``Development 
of the Call Area,'' this area has been further refined based upon input 
from the BOEM Virginia Renewable Energy Task Force and other 
stakeholders who commented on the original WEA and the Notice of Intent 
(NOI) to Prepare an EA for the ``Smart from the Start'' WEAs (76 FR 
7226 (Feb. 9, 2011)). The Virginia WEA may be further adjusted in 
response to comments and information received from this notice as well 
as future sale notices.

Determination of Competitive Interest

    The first step in determining whether there is competitive interest 
in an area for wind energy projects on the OCS offshore of Virginia 
will be the evaluation of submissions nominating particular areas for 
lease. At the conclusion of the comment period for this Call, BOEM will 
review the information received, undertake a completeness and 
qualifications review of the nominations received, and make a 
determination as to whether competitive interest exists.
    To support the determination of competitive interest, BOEM will 
first assess whether there is any geographic overlap of the area(s) 
nominated. If two areas nominated fully or partially overlap, BOEM will 
continue to proceed with the competitive lease process as described 
below. BOEM may consult with the BOEM Virginia Renewable Energy Task 
Force throughout this process.
    Situations may arise in which several parties nominate lease areas 
that do not overlap. Under these circumstances, BOEM could choose to 
employ an allocation system of leases that involves the creation of 
competition across tracts. This system is referred to as intertract 
competition and could also be implemented under the competitive process 
outlined in the REAU rule. BOEM may consult with the BOEM Virginia 
Renewable Energy Task Force in determining whether to use an intertract 
competition system.

Competitive Leasing Process

    If, after receiving responses to this Call, BOEM proceeds with the 
competitive leasing process for certain areas, it will follow the steps 
required by 30 CFR 585.211(c) through 585.225:
    (1) Proposed Sale Notice: BOEM will publish a Proposed Sale Notice 
(PSN) in the Federal Register and send the PSN to the Governor of any 
affected state, any affected tribes, and the executive of any local 
government that might be affected. The PSN will describe the areas that 
BOEM has decided to offer for leasing and the proposed terms and 
conditions of a lease sale, including the proposed auction format, 
lease form and lease provisions. Additionally, the PSN will describe 
the criteria and process for evaluating bids. The PSN would be issued 
after preparation of various analyses of proposed lease sale economic 
terms and conditions. The comment period following issuance of a PSN is 
60 days.
    (2) Final Sale Notice: If BOEM decides to proceed with lease 
issuance after considering comments on the PSN, it will publish the 
Final Sale Notice (FSN) in the Federal Register at least 30 days before 
the date of the sale. BOEM may use one of the following three auction 
formats to select the winning bidder(s): Sealed bidding; ascending 
bidding; or two-stage bidding (a combination of ascending bidding and 
sealed bidding). BOEM will publish the criteria for winning bid 
determinations in the FSN.
    (3) Bid Submission and Evaluation: Following publication of the FSN 
in the Federal Register, qualified bidders may submit their bids to 
BOEM in accordance with procedures specified in the FSN. The bids, 
including the bid deposits if applicable, would be reviewed for 
technical and legal adequacy. BOEM would evaluate each bid to determine 
if the bidder has complied with all applicable regulations and with the 
terms of the FSN. BOEM reserves the right to reject any or all bids and 
the right to withdraw an offer to lease an area from the sale.
    (4) Issuance of a Lease: Following the selection of a winning bid 
or bids by BOEM, the submitter(s) is/are notified of the decision and 
provided a set of official lease documents for execution. The 
successful bidder(s) will be required to execute the lease, pay the 
remainder of the bonus bid, if applicable, and file the required 
financial assurance within 10 days of receiving the lease copies. Upon 
receipt of the required payments, financial assurance, and properly 
executed lease forms, BOEM will issue a lease to the successful 
bidder(s).
    Pursuant to 30 CFR 585.212, BOEM may decide to end the competitive 
leasing process prior to the publication of a FSN if it believes that 
competitors have withdrawn and competitive interest no longer exists. A 
termination of the competitive process would require BOEM to publish an 
additional notice in the Federal Register to confirm that competitive 
interest no longer exists in the area. BOEM would use the information 
received in response to this additional notice to determine whether it 
would continue with the competitive lease sale process or initiate the 
noncompetitive lease negotiation process.

Noncompetitive Leasing Process

    If, after evaluating the responses to this notice, BOEM determines 
that there is no competitive interest in a proposed lease, it may 
proceed with the noncompetitive lease issuance process pursuant to 30 
CFR 585.232, coordinating with the BOEM Virginia Renewable Energy Task 
Force, as appropriate. Should BOEM decide to proceed with the 
noncompetitive leasing process, it will ask if the respondent wants to 
proceed with acquiring the lease, and if so, the respondent must submit 
an acquisition fee as specified within 30 CFR 585.502(a). After 
receiving the acquisition fee, BOEM would publish a notice in the 
Federal Register announcing a determination of no competitive interest. 
Within 60 days of

[[Page 5548]]

the date of that notice, the respondent would be required to submit a 
Site Assessment Plan (SAP), as described in 30 CFR 585.231(d)(2)(i).
    BOEM will comply with the requirements of NEPA, CZMA, and other 
applicable Federal statutes when in the process of issuing a lease 
noncompetitively. BOEM coordinates and consults, as appropriate, with 
relevant Federal agencies, affected tribes, and affected state and 
local governments, in issuing a noncompetitive lease and developing 
lease terms and conditions.
    It is possible that responses to this notice may result in a 
determination that there is competitive interest for some areas but not 
for others. BOEM would announce publicly its determinations before 
proceeding with a competitive process, a noncompetitive process, both, 
or neither.

Environmental Reviews

    BOEM has prepared an EA considering the environmental impacts and 
socioeconomic effects of issuing renewable energy leases. The EA 
includes reasonably foreseeable site characterization activities, such 
as, geophysical, geotechnical, archaeological, and biological surveys 
on those leases identified in WEAs offshore New Jersey, Delaware, 
Maryland, and Virginia. The EA also considers the reasonably 
foreseeable environmental impacts and socioeconomic effects associated 
with the approval of site assessment activities (including the 
installation and operation of meteorological towers and buoys) on the 
leases that may be issued. The Commercial Wind Lease Issuance and Site 
Characterization Activities on the Atlantic Outer Continental Self 
Offshore New Jersey, Delaware, Maryland, and Virginia Environmental 
Assessment (Regional EA) can be found at: http://www.boem.gov/Renewable-EnergyProgram/Smart-from-the-Start/Index.aspx. The area 
identified in this Call matches the Virginia WEA described in the 
preferred alternative in the Regional EA.
    In the event that a particular lease is issued, and the lessee 
subsequently submits a Site Assessment Plan (SAP), pursuant to 30 CFR 
585.605-618, BOEM would then determine whether the EA adequately 
considers the environmental consequences of the activities proposed in 
the lessee's SAP. If BOEM determines that the analysis in the EA 
adequately considers these consequences, then no further analysis under 
the National Environmental Policy Act (NEPA) would be required before 
BOEM make a decision on the SAP. If, on the other hand, BOEM determines 
that the analysis in this EA is inadequate for that purpose, BOEM would 
prepare additional NEPA analysis before it could make a decision on the 
SAP. In either event, BOEM would then make a decision to approve, 
approve with modifications, or disapprove the SAP.
    If a lessee is prepared to propose a wind energy generation 
facility on its lease, it would submit a construction and operations 
plan (COP). BOEM then would prepare a separate site- and project-
specific NEPA analysis of the proposed project. This analysis would 
likely take the form of an EIS and would provide the public and Federal 
officials with comprehensive information regarding the reasonably 
foreseeable environmental impacts of the proposed project. In this NEPA 
analysis, BOEM would evaluate the potential environmental and 
socioeconomic consequences of the proposed project. This analysis would 
inform BOEM's decision to approve, approve with modification, or 
disapprove a lessee's COP pursuant to 30 CFR 585.628. This NEPA process 
also would provide additional opportunities for public involvement 
pursuant to NEPA and the White House Council on Environmental Quality's 
regulations at 40 CFR parts 1500-1508.

Description of the Call Area

    The Call Area offshore Virginia contains 19 whole OCS blocks and 13 
sub-blocks. The western edge of the Call is approximately 23.5 nmi from 
the Virginia Beach coastline, and extends to an eastern edge that is 
approximately 36.5 nmi from the same location. The longest north/south 
portion is approximately 10.5 nmi in length and the longest portion of 
the east/west portion is approximately 13 nmi in length. The entire 
area is approximately 112,799 acres, or 45,648 hectares. The boundary 
of the Call Area follows the points listed in the table below in 
clockwise order beginning in the northwest corner of block 6012-C. 
Point numbers 1 and 9 are the same. Coordinates are provided in X, Y 
(eastings, northings) UTM Zone 18N, NAD 83 and geographic (longitude, 
latitude), NAD83.

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                                                               Y Northing
                Point No.                  X Easting  UTM)        (UTM)           Longitude         Latitude
----------------------------------------------------------------------------------------------------------------
1.......................................            459200           4094400        -75.458518         36.994856
2.......................................            480800           4094400        -75.215776         36.995546
3.......................................            480800           4075200        -75.215289         36.822467
4.......................................            456800           4075200        -75.484393         36.821676
5.......................................            456800           4092000        -75.485351         36.973115
6.......................................            458000           4092000        -75.471870         36.973169
7.......................................            458000           4093200        -75.471937         36.983986
8.......................................            459200           4093200        -75.458453         36.984039
9.......................................            459200           4094400        -75.458518         36.994856
----------------------------------------------------------------------------------------------------------------

    The following 19 full OCS blocks are included within the Call Area: 
Currituck Sound NJ18-11, blocks 6013, 6014, 6015, 6016, 6062, 6063, 
6064, 6065, 6066, 6112, 6113, 6114, 6115, 6116, 6162, 6163, 6164, 6165, 
and 6166. The following 13 sub-blocks are included within the Call 
Area:

----------------------------------------------------------------------------------------------------------------
       Protraction name          Protraction No.        Block No.                      Sub block
----------------------------------------------------------------------------------------------------------------
Currituck Sound..............            NJ18-11                6012   C,D,F,G,H,I,J,K,L,M,N,O,P
----------------------------------------------------------------------------------------------------------------


[[Page 5549]]

List of OCS Blocks and Sub-Blocks in the Call Area Potentially Subject 
to Limitations

    The Call Area includes areas that BOEM wishes to highlight as areas 
of special interest or concern based on available information. These 
areas are described below.

Fish Haven/Artificial Reef Site

    An obstruction area has been identified on the National Oceanic and 
Atmospheric Administration (NOAA) nautical charts within the Call Area 
that contains a fish haven/artificial reef site. The specific sub-
blocks transected by the fish haven/artificial reef site are listed 
below. Site-specific stipulations may be applied to any leases issued 
in, or plans approved for, this area.

----------------------------------------------------------------------------------------------------------------
       Protraction name          Protraction No.       Block No.                       Sub block
----------------------------------------------------------------------------------------------------------------
Currituck Sound...............            NJ18-11               6013  B,C,D,E,F,G,H,I,J,K,L
Currituck Sound...............            NJ18-11               6014  A,B,E,F,I,J
----------------------------------------------------------------------------------------------------------------

Navigation

    The U.S. Coast Guard (USCG) advises that all blocks included in the 
Call Area require further study to determine site-specific risks to 
navigational safety. It is possible that OCS blocks included in the 
Call Area may not be made available for leasing and/or development due 
to navigational safety issues, and any blocks that are may require 
site-specific stipulations and conditions.

Department of Defense (DoD) Activities

    The Call Area includes OCS blocks where site-specific conditions 
and stipulations may need to be developed and applied to any leases 
issued and/or plans approved to help ensure that projects are 
compatible with DoD activities. Such stipulations may include, but are 
not limited to:
    1. A hold-and-save-harmless agreement where the lessee assumes all 
risks of damage or injury to persons or property if such injury or 
damage to such person or property occurs by reason of the activities of 
the U.S. Government;
    2. A requirement that at times requested by DoD, the lessee control 
its own electromagnetic emissions and those of its agents, employees, 
invitees, independent contractors, or subcontractors when operating in 
specified DoD Operating Areas (OPAREAs) or warning areas;
    3. An agreement with the appropriate DoD commander when operating 
vessels or aircraft in a designated OPAREA or warning area requiring 
that these vessel and aircraft movements be coordinated with the 
appropriate DoD commander;
    4. A requirement that at times requested by DoD, the lessee 
temporarily suspend operations and/or evacuate the lease in the 
interest of safety and/or national security.

Protected Species

    BOEM may consider including stipulations specific to protected 
species in renewable energy leases that may be issued in the Call Area, 
as well as in any associated plans that may be approved within the Call 
Area. Examples of stipulations may include (1) measures to avoid 
impacts to protected species during site assessment activities and 
characterization surveys, (2) documentation of the presence or absence 
of protected species, and (3) sharing of data collected related to 
protected species. More information on protective measures for site 
assessment and site characterization activity can be found in the 
Environmental Assessment for Commercial Wind Lease Issuance and Site 
Characterization Activities on the Atlantic Continental Shelf Offshore 
New Jersey, Delaware, Maryland, and Virginia.

Map of the Call Area

    A map of the Call Area can be found at: http://www.boem.gov/Renewable-Energy-Program/State-Activities/Virginia.aspx.
    A large scale map of the Call Area showing boundaries of the area 
with numbered blocks is available from BOEM at the following address: 
Bureau of Ocean Energy Management, Office of Renewable Energy Programs, 
381 Elden Street, HM 1328, Herndon, Virginia 20170-4817.Phone: (703) 
787-1320, Fax: (703) 787-1708.

Development of the Call Area

    The Call Area was delineated through consultation with the BOEM 
Virginia Renewable Energy Task Force and is intended to achieve a 
balance that provides adequate protection of ecologically sensitive 
areas, minimizes space-use conflicts, and maximizes the area available 
for commercial offshore wind development. Specific mitigation, 
stipulations, or exclusion areas may be developed as a result of 
environmental reviews and associated consultations, as well as 
continued coordination with the BOEM Virginia Renewable Energy Task 
Force.
    The development of the Call Area began with consideration of a 
preliminary 70 OCS block area of interest discussed at the first BOEM 
Virginia Renewable Energy Task Force meeting in December 2009. The area 
encompassed the 50 blocks under study by VCERC at the time as part of 
its offshore wind mapping initiative and was delineated to avoid 
sensitive ecological areas offshore the barrier islands to the north 
and take advantage of a region comprised of Class 6 winds. In addition, 
BOEM had received two commercial unsolicited lease requests within this 
area, which BOEM will not process, as further described in the section 
entitled ``Unsolicited Applications Received by BOEM for Areas Offshore 
Virginia.'' Following the first meeting of the BOEM Virginia Renewable 
Energy Task Force, and based on continuing dialogue with the Task Force 
and individual member agencies, the area was further refined to avoid 
sensitive operating and warning areas under the purview of DoD and 
National Aeronautics Space Administration (NASA), as well as a dredge 
disposal area under the regulatory authority of the U.S. Army Corps of 
Engineers. As part of this effort, BOEM asked DoD, USCG, and NASA to 
conduct evaluations of the area under consideration and make 
recommendations to BOEM as to blocks that should be excluded from 
leasing and/or development due to sensitive agency activities, as well 
as areas that could be included with appropriate conditions and 
stipulations.
    DoD conducted two evaluations following the first and second task 
force meetings, and provided to BOEM its recommendations regarding OCS 
blocks that would be inappropriate for leasing and development in light 
of existing DoD activities. DoD also recommended that, should leases be 
issued, subsequent development in the remaining area should be subject 
to site-specific stipulations. NASA determined that the Call Area was 
compatible with launch operations at NASA Wallops Flight Facility. In 
advance of the third Task Force meeting in December 2010, the USCG 
Fifth District identified a deep-water slough or channel in use by 
deep-draft vessels exiting and entering the Chesapeake Bay. It 
recommended that a 3 nmi setback be established

[[Page 5550]]

between the charted dredge disposal area at the entrance to the Bay and 
the western edge of the Call Area.
    To better delineate the Call Area to avoid areas heavily used by 
vessels entering and exiting the Chesapeake Bay, BOEM acquired 
Automatic Identification System (AIS) data from 2009 and conducted an 
analysis to identify vessel uses of the area, including deep-draft, 
barge, tug, and tow. This information was presented to the BOEM 
Virginia Renewable Energy Task Force on August 17, 2011, and allowed 
for further refinement of the Call Area. The Call Area described in 
this notice was further refined on the basis of the USCG's evaluation 
of the Call Area; which BOEM received in September 2011.
    More detailed descriptions of certain issues raised through 
consultation with the BOEM Virginia Renewable Energy Task Force and 
other information that may be of interest to potential Call respondents 
and other relevant parties is included below.

Navigational Issues

    The USCG has provided the following information for consideration 
by potential respondents to this Call and other interested parties. The 
USCG has a responsibility under the Ports and Waterways Safety Act 
(PWSA) to ensure the safety of navigation. The PWSA requires USCG to 
provide safe access routes for the movement of vessel traffic 
proceeding to or from ports or places subject to the jurisdiction of 
the United States. USCG meets this requirement through designation of 
necessary fairways and traffic separation schemes (TSS) for vessels 
operating in the territorial sea of the United States and in high sea 
approaches, outside the territorial sea. The USCG may also determine 
that establishment of other ships' routing measures, such as a 
precautionary area, would enhance navigational safety. The USCG works 
with its Federal interagency and International Maritime Organization 
partners to establish these voluntary measures as necessary.
    The potential for navigational safety risk posed by installing 
structures in proximity to shipping routes is affected by numerous 
factors including, but not limited to: vessel size; vessel type; 
density of traffic; prevailing conditions; cumulative impact of 
multiple obstructions (for example, wind assessment or development 
facilities); existence of multiple shipping routes (for example, 
crossing or meeting situations); radar/automatic radar plotting aid 
(ARPA) interference; and existence of mitigating factors such as 
navigational aids, vessel traffic services, or pilotage.
    Currently, there is no standard recommended separation distance 
between offshore renewable energy facilities and shipping routes. The 
USCG has reviewed guidance published by other countries such as the 
United Kingdom's Maritime Guidance Note MGN-371 and consulted with its 
own waterways subject matter experts. Currently, USCG considers the 
placement of offshore wind facilities in any area less than 1 nmi from 
traditional shipping routes as a high risk to navigational safety and 
therefore does not recommend placement of offshore wind facilities in 
such areas. The USCG considers placement of such facilities in areas 
greater than 5 nmi from existing shipping routes as a minimal risk to 
navigational safety. Areas considered for placement of offshore wind 
facilities between 1 nmi and 5 nmi would require additional USCG 
analysis to determine if mitigation factors could be applied to bring 
navigational safety risk within acceptable levels.
    Respondents to this Call should note that impacts to radar and ARPA 
may still occur outside of 1 nmi and would have to be evaluated along 
with other potential impacts. The above considerations are only 
planning guidelines, and the guidelines may be changed based on the 
completion of the USCG's Atlantic Coast Port Access Route Study 
(ACPARS). In addition, these guidelines may be further modified upon 
completion of a Navigational Safety Risk Assessment (NSRA), which may 
be required before BOEM could approve a lessee's plan for the 
construction of any offshore wind facilities.
    The USCG is conducting ACPARS to determine how best to route 
traffic on the Atlantic coast (see 76 FR 27288; May 11, 2011). This 
study would better inform the USCG about the navigational safety risks, 
if any, associated with construction of offshore wind facilities. The 
data gathered during this ACPARS may result in the establishment of new 
vessel routing measures, modification of existing routing measures, or 
removal of some existing routing measures off the Atlantic Coast from 
Maine to Florida.
    As a member of the BOEM Virginia Renewable Energy Task Force, the 
USCG partnered with BOEM to gather existing AIS data, stakeholder 
input, and information on existing traffic patterns, as well as 
historical and current coastwise and international uses, within the 
Call Area offshore Virginia. The USCG conducted an evaluation, using 
the best available information, of the Virginia Call Area. The USCG 
identified OCS blocks (including sub-blocks) that, if developed, may 
have an unacceptable effect on navigational safety, and other OCS 
blocks (including sub-blocks) that would require further study to 
determine the potential effect that the installation of offshore wind 
facilities in these blocks would have on navigational safety.
    The USCG commented to BOEM that, it appears at this time, if any 
offshore wind facilities were to be installed in the future, most of 
the blocks and sub-blocks included in the Call would require USCG to 
create significant new routing measures to ensure navigation safety. 
The USCG cautions that after it has completed its ACPARS and has 
performed a deliberate evaluation of vessel routing measures, it may 
conclude that ultimate development of many or all of the blocks now 
included in the Call would present serious risks to navigation. The 
USCG has informed BOEM that it cannot make a final determination of the 
potential risk that ultimate development of the Call Area would present 
to navigation until it has completed its ACPARS analysis.

Department of Defense Activities

    The Call Area is within the DoD Virginia Capes Operating Area 
(VACAPES OPAREA), which is a subsurface, surface, and air operations 
area off the Virginia coast that includes both Warning Area 50 (W-50) 
and Warning Area 72 (W-72).
    The W-50 warning area air space overlies that portion beyond 3 nmi 
from the coast of Dam Neck, Virginia and is subdivided into three sub-
areas. All areas encompass the sea surface and airspace up to an 
altitude of 75,000 feet. Naval operations conducted in W-50 include 
mine warfare training, surface-to-surface, air-to-surface and surface-
to-air gunnery exercises, airborne drone and seaborne target launch, 
transit and recovery operations, and unit level Fleet and Navy Special 
Warfare training.
    A firing range surface danger zone defined in 33 CFR 334.390(a) 
underlies most of the W-50 warning area, and DoD activities in this 
danger zone are the same as described for the warning area. Navy ships, 
surface craft, and aircraft require freedom of movement to tactically 
maneuver within the danger zone. Regulations set forth in 33 CFR 
334.390(b)(1) require vessels transiting the danger zone to proceed 
with caution and to not remain in the area longer than necessary for 
transit. Potential wind energy development in the lease blocks 
identified in this Call may create a constriction of the danger zone 
for vessel traffic approaching and departing

[[Page 5551]]

Chesapeake Bay. An affected entity would need to ask DoD to modify the 
area of the danger zone to mitigate the potential vessel traffic 
constriction.
    The W-72 warning area overlies the sea surface and contains the 
airspace located seaward of W-50 in the VACAPES OPAREA. Special use 
airspace within the portion of W-72 west of 75[deg] 30'W extends from 
the sea surface up to, but not including 2,000 feet, (Area 13A) and 
then again above 60,000 feet (flight level 600) to unlimited (Area 
13B). Air operations between 2,000 feet and 60,000 feet are controlled 
by Naval Air Station Oceana, Virginia (2,000 feet to 23,000 feet) and 
by the Federal Aviation Administration's (FAA) Washington Center 
(24,000 feet to 60,000 feet). Naval operations conducted in W-72 
include air-to-air, air-to-surface, and surface-to-surface missile, 
gunnery and bomb training, aircraft carrier launch and recovery 
operations, and airborne drone and seaborne target launch, transit and 
recovery operations.
    Two Navy Shipboard Electronic Systems Evaluation Facility (SESEF) 
instrumented buoys are located in the vicinity of Chesapeake Light. 
Naval vessels conduct electronic systems tests and evaluation in the 
vicinity of these buoys and require freedom of movement while 
circumnavigating each buoy in a 1 or 2 nmi radius.

Air Navigation

    The FAA coordinates closely with the DoD and has jurisdiction over 
commercial flight paths out to 12 nmi offshore. Developers may be 
required to notify the FAA of construction of structures in that area 
with a Notice of Proposed Construction or Alteration. In response, the 
FAA would issue an opinion regarding whether or not the proposed 
structure(s) would constitute a hazard to air navigation.

Protected Species

    Within the Call Area there are several species listed as threatened 
or endangered under the jurisdiction of either the U.S. Fish and 
Wildlife Service or NOAA's National Marine Fisheries Service (NMFS). 
These species are described in this Call for informational purposes 
only. The federally-listed endangered Roseate Tern (Sturna dougallii 
dougallii) and Cahow (Pterodroma cahow) may occur occasionally within 
the Call Area, though neither species is expected to frequent the area 
based on available data. The Roseate Tern may pass through the area 
during migration, and the Cahow may occur during some weather 
conditions or while foraging outside of the breeding season. In 
addition to these two listed species, seabirds protected under the 
Migratory Bird Treaty Act may occur in the Call Area. Several species 
listed as threatened or endangered under the jurisdiction of NMFS occur 
seasonally in the Call Area. NMFS has not designated any critical 
habitat within the Call Area. Six species of endangered large whales 
occur seasonally off the Atlantic coast of the U.S.: the North Atlantic 
right (Eubalaena glacialis), fin (Balaenoptera physalus), sei 
(Balaenoptera borealis), humpback (Megaptera novaeangliae), sperm 
(Physeter macrocephalus), and blue (Balaenoptera musculus). However, of 
these six species, only three--right, humpback, and fin whales--are 
likely to occur in the Call Area; sperm, blue, and sei whales are 
typically found in waters farther offshore.
    Four species of listed sea turtles, including endangered 
leatherback (Dermochelys coriacea), Kemp's ridley (Lepidochelys kempi) 
and green (Chelonia mydas) and threatened loggerhead (Caretta caretta), 
occur seasonally in the Call Area. Sea turtles arrive in the mid-
Atlantic, including the Call Area, in the spring and typically begin 
migrating southward by mid-November.
    In addition to these ESA-listed marine mammals and sea turtles, 
NMFS has proposed to list 5 distinct population segments (DPS) of 
Atlantic sturgeon as threatened or endangered. The marine range of 
Atlantic sturgeon from all five of the DPSs extends from the Bay of 
Fundy, Canada into Florida and includes the Virginia Call Area. NMFS is 
in the process of final rulemaking regarding the status of Atlantic 
sturgeon.

Unsolicited Applications Received by BOEM for Areas Offshore Virginia

Research Lease Application
    In September 2011, DMME submitted an unsolicited application for a 
research lease under 30 CFR 585.238. Four of the sub-blocks in this 
research lease application are within the Call Area and DMME proposes 
to use these sub-blocks for the siting of two meteorological towers for 
monitoring of wind velocities, water levels, waves, and bird and bat 
activities within and around the Call Area. These four sub-blocks are 
listed below:

----------------------------------------------------------------------------------------------------------------
       Protraction name          Protraction No.       Block No.                       Sub block
----------------------------------------------------------------------------------------------------------------
Currituck Sound...............            NJ18-11               6014  B,C
Currituck Sound...............            NJ18-11               6164  N,O
----------------------------------------------------------------------------------------------------------------

The DMME application states that the proposed meteorological towers can 
be planned, designed, installed and begin collecting data by the summer 
of 2013. Installation is contingent upon the acquisition of an OCS 
lease and subsequent submittal and BOEM review of an adequate plan 
describing these activities.
    This Call will enable BOEM to make a determination regarding 
competitive commercial interest in the Call Area, which encompasses 
these portions of DMME's proposed research lease. BOEM believes that 
potential commercial development in an area should take priority over 
potential research activities in that area, if the two uses of the 
area(s) would not be compatible. If BOEM receives a nomination for a 
commercial wind lease encompassing a portion of the Call Area that DMME 
has proposed for a research lease. BOEM may issue only a commercial 
lease in that area. For BOEM to initiate the leasing process for the 
proposed research lease, BOEM would be required to publish a separate 
Federal Register notice to determine competitive interest, per 30 CFR 
Sec.  585.238(c).
Commercial Applications
    In August and September 2009, two applicants submitted separate 
unsolicited requests for commercial leases on the OCS offshore Virginia 
pursuant to 30 CFR 585.230. The unsolicited lease requests were 
submitted by Apex Offshore Wind LLC (Apex) and Seawind Renewable Energy 
Corporation (Seawind). BOEM has informed the applicants that BOEM will 
not proceed with processing these unsolicited requests and invited them 
to submit a nomination pursuant to this Call instead. If either 
applicant is interested in obtaining a lease in the Call Area offshore 
Virginia, it must submit a complete nomination that describes that 
applicant's commercial interest in direct response to the Call.

[[Page 5552]]

Required Nomination Information
    Nomination for a commercial wind energy lease in the area 
identified in this notice must include the following:
    (1) The BOEM Protraction name, number, and specific whole or 
partial OCS blocks within the Call Area that are of interest for 
commercial wind leasing, including any required buffer area. This 
information should be submitted as a spatial file compatible with 
ArcGIS 9.3 in a geographic coordinate system (NAD 83) in addition to a 
hard copy submittal. If the proposed project area includes one or more 
partial blocks, please describe those partial blocks in terms of a 
sixteenth (i.e., sub-block) of an OCS block. BOEM will not consider any 
areas outside of the Call Area in this process;
    (2) A description of your objectives and the facilities that you 
would use to achieve those objectives;
    (3) A preliminary schedule of proposed activities, including those 
leading to commercial operations;
    (4) Available and pertinent data and information concerning 
renewable energy resources and environmental conditions in the area 
that you wish to lease, including energy and resource data and 
information used to evaluate the Call Area. Where applicable, spatial 
information should be submitted in a format compatible with ArcGIS 9.3 
in a geographic coordinate system (NAD 83);
    (5) If your nomination includes any of the sub-blocks that the 
Commonwealth of Virginia has identified for potential research 
activities, state whether you would consider such activities to be 
compatible with the commercial wind activities you ultimately plan to 
undertake on the lease. If it would be necessary for BOEM to exclude or 
restrict those activities from occurring in your commercial lease area, 
please provide an explanation;
    (6) Documentation demonstrating that you are legally qualified to 
hold a lease as set forth in 30 CFR 585.106 and 107. Examples of the 
documentation appropriate for demonstrating your legal qualifications 
and related guidance can be found in Chapter 2 and Appendix B of the 
BOEM Renewable Energy Framework Guide Book available at: http://www.boem.gov/Renewable-Energy-Program/Regulatory-Information/Index.aspx#Notices_to_Lessees,_Operators_and_Applicants. Legal 
qualification documents will be placed in an official file that may be 
made available for public review; and
    (7) Documentation demonstrating that you are technically and 
financially capable of constructing, operating, maintaining and 
decommissioning the facilities described in (2) above. Guidance 
regarding the required documentation to demonstrate your technical and 
financial qualifications can be found at http://www.boem.gov/Renewable-Energy-Program/Regulatory-Information/Index.aspx#Notices_to_Lessees,_Operators_and_Applicants.
    Documentation you submit to demonstrate your legal, technical, and 
financial qualifications must be provided to BOEM in both paper and 
electronic formats. BOEM considers an Adobe PDF file stored on a 
compact disc (CD) to be an acceptable format for submitting an 
electronic copy.
    It is critical that you submit a complete nomination so that BOEM 
may evaluate your submission in a timely manner. If BOEM reviews your 
nomination and determines that it is incomplete, BOEM will inform you 
of this determination in writing. This letter will describe the 
information that BOEM determined to be missing from your nomination, 
and which you must submit in order for BOEM to deem your submission 
complete. You will be given 15 business days from the date of the 
letter to submit the information that BOEM found to be missing from 
your original submission. If you do not meet this deadline, or if BOEM 
determines this second submittal is insufficient and has failed to 
complete your nomination, then BOEM retains the right to deem your 
nomination invalid. In that case, BOEM would not process your 
nomination.
Requested Information From Interested or Affected Parties
    BOEM is requesting from the public and other interested or affected 
parties specific and detailed comments regarding the following:
    (1) Geological and geophysical conditions (including bottom and 
shallow hazards) in the area described in this notice;
    (2) Known archaeological and/or cultural resource sites on the 
seabed in the area described in this notice;
    (3) Historic properties potentially affected by the construction of 
meteorological towers, the installation of meteorological buoys, or 
commercial wind development in the area identified in this Call;
    (4) Multiple uses of the area, including navigation (in particular, 
commercial and recreational vessel use), recreation, and fisheries 
(commercial and recreational); and
    (5) Other relevant socioeconomic, biological, and environmental 
information.

Protection of Privileged or Confidential Information

Freedom of Information Act

    BOEM will protect privileged or confidential information submitted 
as required by the Freedom of Information Act (FOIA). Exemption 4 of 
FOIA applies to trade secrets and commercial or financial information 
that you submit that is privileged or confidential. If you wish to 
protect the confidentiality of such information, clearly mark it and 
request that BOEM treat it as confidential. BOEM will not disclose such 
information, subject to the requirements of FOIA. Please label 
privileged or confidential information ``Contains Confidential 
Information'' and consider submitting such information as a separate 
attachment.
    However, BOEM will not treat as confidential any aggregate 
summaries of such information or comments not containing such 
information. Additionally, BOEM will not treat as confidential (1) the 
legal title of the nominating entity (for example, the name of your 
company), or (2) the list of whole or partial blocks that you are 
nominating. Finally, information that is not labeled as privileged or 
confidential would be regarded by BOEM as suitable for public release.

Section 304 of the National Historic Preservation Act (NHPA) (16 U.S.C. 
470w-3(a))

    BOEM is required, after consultation with the Secretary of the 
Interior, to withhold the location, character, or ownership of historic 
resources if it determines that disclosure may, among other things, 
risk harm to the historic resources or impede the use of a traditional 
religious site by practitioners. Tribal entities should designate 
information that falls under Section 304 of NHPA as confidential.

    Dated: January 23, 2012.
Tommy P. Beaudreau,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2012-2516 Filed 2-2-12; 8:45 am]
BILLING CODE 4310-VH-P