Federal Register, Volume 88 Issue 37 (Friday, February 24, 2023)

[Federal Register Volume 88, Number 37 (Friday, February 24, 2023)]
[Notices]
[Pages 11939-11953]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-03842]

[[Page 11939]]

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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2023-0021]

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

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Proposed sale notice; request for comments.

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SUMMARY: The Bureau of Ocean Energy Management (BOEM) proposes to offer
one or more lease areas (Lease Areas) for commercial wind power
development on the U.S. Outer Continental Shelf (OCS) in the Gulf of
Mexico (GOM). The Lease Areas are located in the previously identified
wind energy areas (WEA) offshore Lake Charles, LA, and Galveston, TX.
This proposed sales notice (PSN) contains information pertaining to the
areas available for leasing, certain lease provisions and conditions,
auction details, criteria for evaluating competing bids, and procedures
for lease award, appeals, and lease execution. BOEM proposes
simultaneous auctions for the Lease Areas within each WEA using a
multiple-factor bidding format. Any lease resulting from this sale does
not constitute approval of any offshore wind energy facilities. Lessees
must submit project-specific plans to BOEM for approval before starting
construction of an OCS wind energy facility. BOEM will subject such
plans to environmental, technical, and public reviews prior to deciding
whether the proposed development should be authorized.

DATES: BOEM must receive your comments no later than April 25, 2023.
For prospective bidders who want to participate in this lease sale:
unless you have received confirmation from BOEM that you are qualified
to participate in the GOMW-1 auction, BOEM must receive your
qualification materials no later than April 25, 2023.

ADDRESSES: You may send comments by any of the following ways:
Electronically: http://www.regulations.gov. In the entry entitled,
``Enter Keyword or ID,'' enter [BOEM-2023-0021] then click ``search.''
Follow the instructions to submit comments.
Mail, delivery service, or hand delivered: Enclose comment in an
envelope labeled ``Comments on GOM Wind Lease Sale PSN'' and send to:
Bureau of Ocean Energy Management, Office of Emerging Programs, 1201
Elmwood Park Boulevard, New Orleans, Louisiana 70123.
For prospective bidders who want to participate in this lease sale:
Submit your qualification materials in an envelope labeled
``Qualification Materials for GOM Wind Energy Lease Sale'' to Bureau of
Ocean Energy Management, Office of Emerging Programs, 1201 Elmwood Park
Boulevard, New Orleans, Louisiana 70123.
For more information about submitting comments, see Sections XX,
``Public Participation,'' and XXI, ``Protection of Privileged and
Confidential Information,'' under the SUPPLEMENTARY INFORMATION caption
below.

FOR FURTHER INFORMATION CONTACT: Tershara Matthews, Bureau of Ocean
Energy Management, Office of Emerging Programs, 1201 Elmwood Park
Boulevard, New Orleans, Louisiana 70123 or boem.gov">Tershara.matthews@boem.gov.

SUPPLEMENTARY INFORMATION:

I. Background

a. 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 and Western Planning Area 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 indicated
interest for a commercial wind energy lease within the RFI area.
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\ (Call). The Call area comprised the area
located seaward of the Gulf of Mexico Submerged Lands Act boundary,
bounded on the east by 89.857[deg] W longitude and on the south by the
400-meter bathymetry contour and the United States 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,'' which took effect in January
2001. BOEM received 40 comments from the general public; Federal,
State, and local agencies; the 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.
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\1\ https://www.boem.gov/83-FR-15602/.
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b. 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 inputs received on the Call. On July 20, 2022,
BOEM announced that it was seeking public comments on two preliminary
draft WEAs. The first draft 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 draft 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 for the
preliminary WEAs was open for 30 calendar days.
For purposes of recommending the preliminary WEAs, BOEM considered
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, particularly the 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 markets and
technological trends.
BOEM received ocean users' feedback requesting that BOEM consider
leveraging an ocean planning model previously used in the GOM for
purposes of the National Oceanic and Atmospheric Administration's
(NOAA) Aquaculture Opportunity Areas. 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 relied on
rigorous science to drive an informed,

[[Page 11940]]

forward-looking, and sustainable industry that will maximize
operational efficiency and minimize adverse interactions with other
industries and natural resources. Additionally, BOEM's New Orleans,
Louisiana Office and the NOAA National Centers for Coastal Ocean
Science (NCCOS) collaborated using an ocean planning tool to identify
preliminary WEAs on the U.S. OCS in the GOM. Due to the agencies' vast
richness of data and decades of active management, BOEM was able to use
this tool in the region. BOEM identified preliminary WEAs 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.
Identifying WEAs entails 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) may be located within the Call area. BOEM
seeks to identify wind energy areas in a manner that avoids or
minimizes impacts on environmental resources. The use of this 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 by
(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 potential
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 WEA Modeling Report found at: 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 were then
considered by the decisionmaker.
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 announced the Final WEAs on October 31, 2022, by designating
the following WEAs within the Call area: Louisiana Coast Region (Lake
Charles WEA) and the Texas Coast Region (Galveston WEA). The Area ID
decision memorandum, the Gulf of Mexico Area Identification Pursuant to
30 CFR 585.211(b), and a map of the WEAs are available at: https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities.
c. 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 the Call area. As part of
the EA, BOEM sought comments on the issues and alternatives that should
inform the EA. BOEM received 18 comments, which can be found at http://www.regulations.gov under Docket No. BOEM-2021-0092. In addition to the
preparation of the Draft EA, BOEM has initiated consultations under the
Endangered Species Act (ESA), the Magnuson-Stevens Fishery Conservation
and Management Act (MSFCMA), and the Coastal Zone Management Act
(CZMA). On July 20, 2022, BOEM issued a press release soliciting
comments on the Draft EA. The public comments on the Draft EA can be
found at: https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-draft-ea. BOEM will conduct additional environmental reviews
upon receipt of a lessee's Construction and Operations Plan (COP) if
the proposed leases reach that stage of development. The Final EA is
expected to be published in April 2023.

II. Area Proposed for Leasing

BOEM has identified three areas to propose for leasing. The
Louisiana Coast Region (within the Lake Charles WEA) Lease Area, Lake
Charles OCS-G 37334, consists of 102,480 acres; the Texas Coast Region
(within the Galveston WEA) Lease Area, Galveston I OCS-G 37335 consists
of 102,480 acres, and Lease Area, Galveston II OCS-G 37336, consists of
96,786 acres.
In the final sales notice (FSN), BOEM will only offer one Lease
Area within the Lake Charles WEA proposed in this PSN for auction. BOEM
is seeking comments and recommendations on how many Lease Areas from
the Texas Coast Region should be offered in the FSN and which Lease
Area, OCS-G 37335 (Galveston I) or OCS-G 37336 (Galveston II), would be
preferred if only one is offered.

------------------------------------------------------------------------
Lease area name Lease area ID Acres
------------------------------------------------------------------------
Louisiana Coast
Region:
Lake Charles.................... OCS-G 37334............. 102,480
Texas Coast Region:
Galveston I..................... OCS-G 37335............. 102,480
Galveston II.................... OCS-G 37336............. 96,786
---------
Total........................... ........................ 301,746
------------------------------------------------------------------------

d. The proposed Lease Area of Lake Charles comprises approximately
54 percent of the Louisiana Coast Region WEA M, while the Galveston I
and Galveston II Lease Areas together comprise approximately 36 percent
of the Texas Coast Region WEA I. BOEM subdivided the WEAs Options I and
M so that each proposed Lease Area could be generated using a precision
siting model, similar to the WEA model suitability analysis already
applied.
BOEM is aware of potential conflicts with USCG lightering
operations in portions of the Texas Coast Region Leases. Due to USCG's
concerns about lightering areas in the southern portion of the
Galveston WEA (Option I), BOEM will continue to work with USCG to
identify, quantify, and mitigate potential impacts and risks to
lightering operations within the traditional lightering use areas
within Galveston leases when considering any plans submitted for BOEM's
consideration and approval after lease issuance.

[[Page 11941]]

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.
b. Potential Future Restrictions to Ensure Navigational Safety:
i. USCG Navigational Safety Measures: Potential bidders should note
that portions of the GOM lease areas may not be available for future
development (i.e., installation of wind energy facilities) because of
navigational safety concerns. The USCG recommended that BOEM add a 2-
nautical mile (3704 meter) buffer around the shipping fairways in the
GOM. BOEM may require additional mitigation measures at the COP stage
when the lessee's site-specific navigational safety risk assessment is
available to inform BOEM's decision-making.
ii. Vessel Transit Corridors: Members of the fishing community have
requested that offshore wind energy facilities be designed in a manner
that, among other things, provides for safe transit to fishing grounds
where relevant. The information currently available does not indicate
that transit corridors are warranted, but BOEM may 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.
c. Potential Future Restrictions to Mitigate Potential Conflicts
with Department of Defense Activities: Prospective bidders should be
aware of potential conflicts with DoD's existing uses of the OCS. BOEM
coordinates with DoD throughout the leasing process.
i. Air Surveillance and Radar: The Military Aviation and
Installation Assurance Siting Clearinghouse conducted a DoD assessment
of the Call area. That assessment concluded that the North American
Aerospace Defense Command (NORAD) mission may be affected by the
development of the Lease Area(s). Considering both the expected height
of offshore turbines and future cumulative wind turbine effects,
adverse impacts can be mitigated through the use of Radar Adverse-
impact Management (RAM) \2\ and overlapping radar coverage. For
projects where RAM mitigation is acceptable, BOEM anticipates including
the following stipulations in any sale notification and project
approval conditions:
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\2\ RAM is the technical process designed to minimize the
adverse impact of obstruction interference on a radar system.
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(1) Lessee will notify NORAD when the project is within 30-60 days
of completion and, again, when the project is complete and operational
for RAM scheduling;
(2) Lessee will contribute funds to DoD in the amount of no less
than $80,000 toward the cost of DoD's execution of the RAM procedures
for each radar system affected; and
(3) Lessee will curtail wind turbine operations for national
security or defense purposes as described in the lease.
BOEM will require the lessee to enter into an agreement with the
DoD to implement these conditions and mitigate any identified impacts.
Sixth Generation Over the Horizon Radar is currently in development.
Offshore wind turbines in the Gulf of Mexico may create adverse impacts
to that system. BOEM will further coordinate with DoD and the lessee to
deconflict potential impacts throughout the project review stage, which
may result in adding mitigation measures or terms and conditions as
part of any plan approval.

III. Participation in the Proposed Lease Sale

a. Bidder Participation: Entities that have already been notified
by BOEM that they are qualified or pending qualification to participate
in the upcoming GOMW-1 auction through their response to the RFI or
Call, or by separate submission of qualification materials, are not
required to take any additional action to affirm their interest. Those
entities are listed below:

------------------------------------------------------------------------
Company name Company No.
------------------------------------------------------------------------
Avangrid Renewables, LLC............... 15019.
547 Energy, LLC........................ 15123.
Bluepoint Wind, LLC.................... 15096 (Pending
Qualification).
Shell New Energies US, LLC............. 15140.
Enterprize Energy USA, LLC............. Pending.
Hecate Energy Gulf Wind, LLC........... 15166.
TotalEnergies Renewables USA, LLC...... 15136.
US Mainstream Offshore, Inc............ 15089.
------------------------------------------------------------------------

All other entities wishing to participate in this proposed GOMW-1
auction must submit the required qualification materials to BOEM by the
end of the 60-day comment period for this PSN.
b. Affiliated Entities: On the Bidder's Financial Form (BFF),
discussed below, eligible bidders must list any other person with whom
they are affiliated. An affiliate means a bidding entity who controls,
is controlled by, or is under common control with another bidding
entity. For the purpose of identifying affiliated entities, a bidding
entity may be any individual, firm, corporation, association,
partnership, consortium, or joint venture (when established as a
separate entity) that is participating in the same auction. BOEM
considers bidding entities to be affiliated if:
i. They own or have common ownership of more than 50 percent of the
voting securities, or instruments of ownership or other forms of
ownership, of another bidding entity. Ownership of less than 10 percent
of a bidding entity constitutes a presumption of non-control that BOEM
may rebut.
ii. They own or have common ownership of 10 through 50 percent of
the voting securities or instruments of ownership, or other forms of
ownership, 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,

[[Page 11942]]

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.
BOEM solicits comments from stakeholders on this definition and
will consider this feedback to potentially update its definition of
affiliated entities in the FSN.

IV. Questions for Stakeholders

Stakeholders are encouraged to comment on any matters related to
this proposed lease sale that are of interest or concern. In addition,
BOEM has identified the following issues as particularly important in
developing this lease sale, and we encourage commenters to address
these issues specifically:
a. Number, size, orientation, and location of the proposed Lease
Areas: BOEM is requesting comment on the number of leases that should
be offered within the Lease Areas, the size and orientation of the
Lease Areas, and any portions of the Lease Areas that should be
prioritized for inclusion or exclusion from this lease sale or future
lease sales.
b. 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 OCSLA through competition
for commercially viable Lease Areas. BOEM welcomes additional comments
regarding other considerations for how best to delineate Lease Areas.
c. Transit corridors: BOEM welcomes comments on the potential need
for defined transit corridors within the proposed Lease Areas and the
degree to which such corridors might meet potential users' needs.
d. Existing uses that may be affected by the development of the
proposed Lease Areas: If transit corridors are warranted, what
placement and orientation (length, width, etc.) would facilitate the
continuance of existing uses? BOEM asks commenters to submit technical
and scientific data in support of their comments.
e. Benefits to underserved communities: Executive Order 13985,
``Advancing Racial Equity and Support for Underserved Communities
Through the Federal Government,'' directs advancement of equity for
all, including people of color and others who have been historically
underserved, marginalized, and adversely affected by persistent poverty
and inequality. Executive Order 14008, ``Tackling the Climate Crisis at
Home and Abroad,'' establishes a policy to secure environmental justice
and spur economic opportunity for disadvantaged communities through
investing and building a clean energy economy and making environmental
justice part of every agency's mission.
Consistent with its statutory and regulatory authorities, BOEM is
considering lease stipulations to ensure that communities, particularly
underserved communities, are considered and engaged with 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 metrics for
these stipulations. Commenters are encouraged to describe how these
measures would further the development of the proposed Lease Areas and
the purposes of the Outer Continental Shelf Lands Act (OCSLA). BOEM
requests that commenters provide references to any studies that support
their recommendations.
f. Bidding credits: As authorized under 30 CFR 585.220(a)(4) and
585.221(a)(6), BOEM proposes to use a multiple-factor auction format,
with a multiple-factor bidding system, for this lease sale. Under this
system, BOEM would consider a combination of factors, which would
include a monetary factor (cash bid) and up to two non-monetary factors
in the form of bidding credits, to determine the outcome of the
auction.
BOEM is proposing to grant bidding credits to bidders that commit
to one or both of the following:
(1) supporting workforce training programs for the offshore wind
industry or developing a domestic supply chain for the offshore wind
industry, or a combination of both, as described in section IV(f)(i)
below; or
(2) establishing and contributing to a fisheries compensatory
mitigation fund or contributing to an existing fund to mitigate
potential negative impacts to commercial and for-hire recreational
fisheries caused by OCS offshore wind development in the GOM, as
described in sections IV(f)(iii) and IV(f)(iv) below.
These bidding credits are intended to:
(1) enhance, through training, the offshore wind workforce and
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;
(2) support the expeditious and orderly development of OCS
resources by mitigating potential direct impacts from proposed projects
and encouraging the investment in infrastructure germane to the
offshore wind industry; and
(3) 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.
In a multiple-factor auction, BOEM appoints a panel to review the
non-monetary factors before the auction, but after BOEM has received
the BFFs, BFF Addenda, and conceptual strategies as described in the
BFF Addenda. This panel will later verify the results of the lease
sale. Following the panel's review of the conceptual strategy submitted
by each bidder attempting to qualify for a bidding credit, BOEM would
notify the bidder if it qualifies for a credit(s) prior to the mock
auction. The bid made by a particular bidder in each round would be
comprised of the sum of a monetary factor (cash bid) and the value of
any non-monetary factors (bidding credit(s)). The structure of the
proposed bidding credits is explained in the subsection below.
A bidder may seek to qualify for one or both of the bidding
credits. The work force training and/or domestic supply chain
development bidding credits would be worth 20 percent of the cash bid.
A bidder could commit to both workforce training and supply chain
development, but the bidding credit for these commitments combined
would still be worth 20 percent of the cash bid. The proposed fisheries
compensatory mitigation fund bidding credit would be

[[Page 11943]]

worth 10 percent of the cash bid. If a bidder qualifies for both of the
proposed bidding credits, the credits would be additive for a total
potential credit of 30 percent of the cash bid. Bidders are encouraged
to review the BFF Addendum if they are interested in qualifying for
these bidding credits.
As proposed, all bidding credits would require an explicit
financial commitment. The fully executed lease will include an Addendum
C that will specify the exact amount of the financial commitment. BOEM
provides the following example. For a 30 percent of cash bid bidding
credit with a $50 million Asking Price, the bidding credit would be
calculated (subject to rounding) as follows:
[GRAPHIC] [TIFF OMITTED] TN24FE23.096

Credit = $50 million-$38,461,538 = $11,538,462

The table below demonstrates the financial commitment calculations
if a $50 million Asking Price is paid for in part with various bidding
credits. The cash bid is calculated using the full value of credits
received, and the commitment for each credit is calculated as either 20
or 10 percent of that value for the workforce training/supply chain
development credit, and the fisheries mitigation credit, respectively.

----------------------------------------------------------------------------------------------------------------
Workforce Fisheries
training/ compensatory
Qualified bidding credits Asking price Cash bid ($) Credit value supply chain mitigation
($ million) ($) development fund value
value ($) ($)
----------------------------------------------------------------------------------------------------------------
Workforce Training/Supply Chain 50 38,461,538 11,538,462 7,692,308 3,846,154
Development; and Fisheries
compensatory mitigation fund
(30%)..........................
Workforce Training/Supply Chain 50 41,666,667 8,333,333 8,333,333 0
Development (20%)..............
Fisheries compensatory 50 45,454,545 4,545,455 0 4,545,455
mitigation fund (10%)..........
----------------------------------------------------------------------------------------------------------------

i. 20 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 20 percent of its cash bid
in exchange for a commitment to make a qualifying monetary contribution
(``Contribution''), in the same amount as the bidding credit received,
to programs or initiatives that support workforce training programs for
the U.S. offshore wind industry or development of a U.S. domestic
supply chain for the offshore wind industry, or both, as described in
the BFF Addendum and the Lease.
1. 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.
2. The Contribution to domestic supply chain development must
result in (i) overall benefits to the U.S. offshore wind supply chain
available to all potential purchasers of offshore wind services,
components, or subassemblies, not solely the Lessee's project; (ii)
either the demonstrable development of new domestic capacity (including
vessels) or the demonstrable buildout of existing capacity; (iii) an
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; or (iv) the development of a supply chain supporting the
manufacture of offshore wind facility components that could be used to
generate hydrogen. In this PSN, BOEM refers to hydrogen that is
produced using offshore renewable energy as green hydrogen.
3. No portion of the Contribution may be used to meet the
requirements of any other bidding credits.
4. Bidders interested in obtaining a bidding credit could choose to
commit to workforce training programs, domestic supply chain
initiatives, or a combination of both. The conceptual strategy must
describe verifiable actions that the Lessee will take that 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).
5. 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 these skills and techniques
include welding; wind energy technology; hydraulic maintenance; braking
systems; mechanical systems, including blade inspection and
maintenance; or computers and programmable logic control systems; (iv)
Tribal offshore wind workforce development programs or training for
employees of wholly owned Tribal corporations in skills necessary in
the offshore wind industry; that lead to the expeditious and orderly
development of offshore wind; or (v) Training in any other job skills
that the Lessee can demonstrate are necessary for the planning, design,
construction, operation, maintenance, or decommissioning of offshore
wind energy projects in the United States.

[[Page 11944]]

6. 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; (iii) Technical assistance grants to help U.S.
manufacturers re-tool or certify (e.g., ISO-9001) for offshore wind
manufacturing; (iv) Development of Jones Act-compliant vessels for the
construction, servicing, and/or decommissioning of wind energy projects
in the United States; (v) Purchase and installation of lift cranes
capable of lifting foundations, lift cranes on vessels, towers and
nacelles quayside (vi) Port infrastructure directly related to offshore
wind component manufacturing or assembly of major offshore wind
facility components; (vii) Establishing a new or existing bonding
support reserve or revolving fund available to all businesses providing
goods and services to offshore wind energy companies, including
disadvantaged businesses and wholly owned Tribal corporations; or
(viii) Other supply chain development efforts that the lessee can
further demonstrate advance the manufacturing of offshore wind
components or subassemblies including those that could be used to
generate green hydrogen, or the provision of offshore wind services, in
the United States.
7. 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 Facility Design Report (FDR) for the lease.
The documentation must allow BOEM to objectively verify the amount of
the Contribution and the beneficiary(ies) of the Contribution.
8. 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
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 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.
9. 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 (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.
ii. Questions Regarding Bidding Credit for Workforce Training or
Supply Chain Development:
1. What other activities should qualify for this bidding credit to
best develop a sustained and robust U.S. offshore wind energy supply
chain, as described in section IV(f)(i) above?
2. Are there activities related to manufacturing, sourcing of raw
materials and components, or other offshore wind-related industries
that BOEM should consider as possibly qualifying for this credit?
Please explain how the proposed qualifying activity supports the
development of a domestic supply chain and how that support can best be
documented.
3. Should the sale offer a bidding credit for a bidder who proposes
to make a financial commitment by entering into a long-term contract
for components needed to build or maintain its project that will also
benefit the offshore wind industry as a whole, such as the construction
of new manufacturing capacity or investment in expanding or re-tooling
existing capacity? Are other effects of such contracts conducive to the
development of renewable energy on the OCS? How might the bidder
document that its contract facilitated such development? Should BOEM
require the manufacturer or bidder to demonstrate that the new or
expanded capacity also will be used to fulfill contracts with other
developers? How much of the value of such a contract should count
toward any potential credit, and why?
iii. Fisheries Mitigation and Related Benefits Bidding Credit: The
second bidding credit proposed would allow a bidder to receive a credit
of 10 percent of its cash bid in exchange for a commitment to establish
and contribute to a fisheries compensatory mitigation fund, or to
contribute to a similar existing fund, to compensate for potential
negative impacts to commercial and for-hire recreational fisheries. The
term ``commercial fisheries'' refers to commercial and processor
businesses engaged in the act of catching and marketing fish and
shellfish for sale from the GOM. The term ``for-hire recreational
fisheries'' refers to charter and headboat fishing operations involving
vessels-for-hire engaged in recreational fishing in the GOM that are
hired for a charter fee by an individual or group of individuals (for
the exclusive use of that individual or group of individuals). Lessees
are encouraged to contribute to a regional fund that would compensate
fisheries losses resulting from all OCS wind energy leases and
easements in the GOM. The compensation must address the following:
Gear loss or damage; or
Lost fishing income in GOM wind energy Lease Areas.

[[Page 11945]]

iv. The fisheries compensatory mitigation fund would assist
commercial fisheries directly impacted by income or gear losses due to
offshore wind activities on offshore wind leases or easements and is
intended to address the impacts identified in BOEM's environmental and
project reviews. The compensatory mitigation must cover impacts that
result directly from the preconstruction, construction, operations and
decommissioning of an offshore wind project being developed on GOM wind
energy leases or easements. The fund must be established and the
Contribution made before the lessee submits the lease's first FDR. To
qualify for this credit, the bidder must commit to the bidding credit
requirements on the BFF and submit a 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 verifiable actions that the
lessee intends to take that would allow BOEM to confirm compliance when
the lessee submits its documentation showing how it is satisfying 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.
2. As proposed, gear loss and 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 to recognize the multi-
decade life of offshore wind projects in the GOM. 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;
b. Promote research into the coexistence of multiple ocean
industries; and
c. Offset the cost of gear upgrades and transitions for operating
within a wind farm.
Any fund established or selected by the lessee to meet this sale's
bidding credit requirement must include a process for evaluating the
actuarial status of funds every 5 years and publicly reporting
information on fund disbursement.
3. The fisheries compensatory mitigation fund must be independently
managed by a third party and designed with fiduciary governance and
strong internal controls while minimizing administrative expenses.
4. Documentation: As proposed, if a lease is awarded pursuant to a
winning bid that includes a fisheries compensatory mitigation fund
bidding credit, the lessee must provide written documentation to BOEM
that demonstrates that it completed the fund contribution before it
submits the lease's first FDR. The documentation must enable BOEM to
objectively verify the contribution has met all applicable requirements
as outlined in Addendum C of the Lease. At a minimum, this
documentation must include:
the mechanism established to compensate for gear loss or
damage resulting from all phases of the project development on the
Lease Area (pre-construction, construction, operation, and
decommissioning);
the fisheries compensatory mitigation fund charter,
including the governance structure, audit and public reporting
procedures, and standards for paying compensatory mitigation for
impacts to fishers from development on wind energy Lease Areas in the
GOM;
all receipts documenting the amount, date, financial
institution, and the account and owner of the account to which the
Contribution was made; and
sworn statements by the entity that made the Contribution,
attesting to:
[cir] the amount and date(s) of the Contribution;
[cir] that the Contribution is being (or will be) used in
accordance with the bidding credit requirements in the lease; and
[cir] that all information provided is true and accurate.
The documentation must contain any information specified in the
conceptual strategy that was submitted with the BFF including the
mechanism established to compensate for lost income or for gear loss or
damage during pre-construction, construction, operation, and
decommissioning activities. If the lessee's conceptual strategy has
changed due to market needs or other factors, the lessee would need to
explain this change.
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 to the Lease and will bind the lessee and all
future assignees of the lease. If BOEM were to determine that a lessee
or assignee had failed to satisfy the commitment at the time the first
FDR is submitted, or if a lessee were to relinquish the lease or fail
to start surveys by the fifth Lease Anniversary, 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. BOEM may, at its sole discretion, extend the documentation
deadline beyond the 5-year timeframe stated in this paragraph.
v. General Questions Regarding Fisheries Compensatory Mitigation
Fund Credit: BOEM seeks comment on the following questions concerning a
fisheries compensatory mitigation fund and the associated bidding
credit as described in sections IV(f)(iii) and IV(f)(iv) above.
1. Should BOEM restrict or expand the eligible compensation
criteria?
2. What types of fiduciary governance structures or requirements
should be in place for a fund to qualify?
3. What types of fund management provisions should BOEM require to
ensure the fund's continued actuarial solvency?
4. What information should the fisheries compensatory mitigation
fund be required to publish for the public to evaluate whether the fund
is meeting its objective and whether the funds are being appropriately
used?
5. Should qualifying mitigation funds be segregated to cover
specific leases or should funds be pooled as proposed to cover
fisheries impacts derived from future offshore wind leasing and
projects in the Gulf of Mexico?
6. Should BOEM require investment limitations or other internal
controls for the fund?
7. Should BOEM prescribe limits or caps on the fund's
administrative expenses?
g. Native American Tribes, ocean users, and stakeholder engagement:
In an effort to require early and regular lessee engagement with
affected stakeholders, BOEM is proposing to include a lease stipulation
in the GOM leases 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

[[Page 11946]]

users; the lessee's engagement with 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.
h. Coordinated engagement: BOEM seeks comments on 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.
i. 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?
j. Limits on the Number of Lease Areas per Bidder: BOEM recognizes
that two regions (i.e., Texas WEA and Louisiana WEA), miles apart and
likely serving two different electricity markets, will be offered in
the same renewable energy lease sale. While BOEM is proposing to offer
one lease per region in this PSN, if an applicable alternative is
ultimately selected, then BOEM is proposing to allow each qualified
entity to bid for one lease per region and ultimately acquire one Lease
Area per region using simultaneous auctions. BOEM is seeking feedback
on this proposed scheme and how different leasing scenarios may
influence the advisability of such a limitation (e.g., number of Lease
Areas offered, size of Lease Areas, etc.).
k. The Definition of ``Affiliated Entities'': BOEM prohibits
``affiliated entities'' from bidding against each other in an auction.
This is an important part of BOEM's policy limiting the number of
leases that can be bid on or won by a single entity--the ``one-per-
customer'' policy. In past lease sales, BOEM's definition of
``affiliated entities'' was tied to direct or indirect ownership or
control of one entity over another. This effectively prevents a bidder
and several subsidiaries from bidding in the same lease sale. However,
it has been brought to BOEM's attention that this would not preclude
bidding by multiple entities that have formed agreements with the
effect of circumventing the spirit of BOEM's one-per-customer policy.
For example, BOEM's policy would not cover a situation in which a
bidder also had agreements giving them development rights in other
bidders' projects should they win. Accordingly, we request comment on
revising the definition of ``affiliated entities'' to include bidders
that have formed such agreements related to the disposition of leases
offered in either of the auctions. Such a change in the auction policy
would likely be accompanied by a new requirement to disclose any
agreements with affiliated bidders that could impact the results of the
auction. We invite comment on whether this adjustment to the definition
of ``affiliated entities'' sufficiently protects the policy objectives
of our ``one-per-customer'' policy. See definition of ``affiliated
entities'' in Part III of this PSN.

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 April 25, 2023. All comments
received or postmarked during the comment period will be made available
to the public and considered by BOEM prior to publication of the FSN.
ii. Public Auction Seminar: BOEM will host a public seminar to
discuss the lease sale process and the auction format. The time and
place of the seminar will be announced by BOEM and published on the
BOEM website at https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities. No registration or RSVP is required to attend.
iii. Submit Qualification Materials: Unless you have already
received confirmation from BOEM that you are qualified to participate
in the GOMW-1 auction, all qualification materials must be received by
BOEM by April 25, 2023. This requirement includes the submission of
materials sufficient to establish a company's legal, technical, and
financial qualifications pursuant to 30 CFR 585.106-585.107. BOEM's
qualification guidelines available at https://www.boem.gov/Renewable-Energy-Qualification-Guidelines/ provide guidance on the types of
information you should submit to BOEM pursuant to 30 CFR 585.107. If
you wish to protect the confidentiality of your comments or
qualification materials, clearly mark the relevant sections and request
that BOEM treat them as confidential: please label privileged or
confidential information with the caption ``Contains Confidential
Information'' and consider submitting such information as a separate
attachment. Treatment of confidential information is addressed in
section XXI entitled, ``Protection of Privileged or Confidential
Information.'' Information that is not labeled as privileged or
confidential will be regarded by BOEM as suitable for public release.
b. End of PSN Comment Period to FSN Publication:
i. Review Comments: BOEM will review all comments submitted in
response to the PSN during the comment period.
ii. Finalize Qualifications Reviews: Prior to the publication of
the FSN, BOEM will complete any outstanding reviews of bidder
qualifications materials submitted during the PSN comment period. The
final list of eligible bidders will be published in the FSN.
iii. Prepare the FSN: BOEM will prepare the FSN by updating
information contained in the PSN where appropriate.
iv. Publish FSN: BOEM will publish the FSN in the Federal Register
at least 30-calendar days before the date of the sale.
c. FSN Waiting Period: During the period between FSN publication
and the lease auction (i.e., a minimum of 30-calendar days), qualified
bidders would

[[Page 11947]]

be required to take several steps to remain eligible to participate in
the auction.
i. Bidder's Financial Form: Each bidder must submit a BFF to BOEM
to participate in the auction. The BFF would be required to contain
each bidder's conceptual strategy for each non-monetary bidding credit
for which that bidder wishes to be considered. BOEM must receive each
bidder's BFF no later than the date listed in the FSN. BOEM could
consider extensions to this deadline only if BOEM determines that the
failure to timely submit a BFF was caused by events beyond the bidder's
control. The proposed BFF can be downloaded at: https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities.
Once BOEM has processed a bidder's BFF, the bidder would be allowed
to log into pay.gov and submit a bid deposit. For purposes of this
auction, BOEM would not consider BFFs submitted by bidders for previous
lease sales. Bidders must submit an original BFF, signed manually or
digitally by an authorized signatory, by mail to BOEM's GOM Regional
Office for certification.
1. Your BFF submission should be accompanied with a transmittal
letter on company letterhead.
2. The BFF would be required to be executed by an authorized
representative listed on the bidder's legal qualifications in the BFF,
in accordance with 18 U.S.C. 1001 (fraud and false statements).
3. Additional information regarding the BFF may be found below in
section IX entitled, ``Bidder's Financial Form.''
ii. Bid Deposit: Each qualified bidder must submit a bid deposit of
$2,000,000 in order to bid for one (1) Lease Area. If the FSN allows
bidders to win up to two (2) Lease Areas (one per region), a bid
deposit of $4,000,000 would be required to bid on two (2) Lease Areas
(one per region). Further information about bid deposits can be found
below in section X ``Bid Deposit.''
d. Notification of Eligibility for Non-Monetary Credits: Prior to
the mock auction, BOEM would notify each bidder of its determination of
eligibility for bidding credits for each auction in which 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. Final
details of the Mock Auction will be provided in the FSN.
f. The Auction: BOEM, through its contractor, will hold an auction
as described in the FSN. The auction will take place no sooner than 30-
calendar days following the publication of the FSN in the Federal
Register. The estimated timeframes described in this PSN assume the
auction will take place approximately 45-calendar days after the
publication of the FSN. Final dates will be included in the FSN. BOEM
would announce the provisional winners of the lease sale after the
auction ends.
g. From the Auction to Lease Execution:
i. Refund Non-Winners: Once the provisional winners have been
announced, BOEM will provide the non-winners with a written explanation
of why they did not win and will return their bid deposits.
ii. Department of Justice (DOJ) Review: DOJ will have up to 30-
calendar days to conduct an antitrust review of the auction, pursuant
to 43 U.S.C. 1337(c).
iii. Delivery of the Lease: BOEM will send three lease copies to
each winner, with instructions on how to execute the lease. The first
year's rent is due 45 calendar days after the winners receive the lease
copies for execution.
iv. Return the Lease: Within 10 business days of receiving the
lease copies, the auction winners must post financial assurance, pay
any outstanding balance of their winning bids (i.e., winning monetary
bid minus applicable bid deposit), 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 to be caused by
events beyond the requesting winner's control, pursuant to 30 CFR
585.224(e).
v. Execution of Lease: Once BOEM has received the signed lease
copies and verified that all other required materials have been
received, BOEM will make a final determination regarding its issuance
of the leases and will execute the leases, if appropriate.

VI. Withdrawal of Blocks

BOEM reserves the right to withdraw all or portions of the Lease
Areas prior to executing the leases with the winning bidders.

VII. Lease Terms and Conditions

BOEM has made available the proposed terms, conditions, and
stipulations for the commercial leases that would be offered through
this proposed sale. BOEM reserves the right to require compliance with
additional terms and conditions associated with the approval of a site
assessment plan (SAP) and COP. The proposed lease is on BOEM's website
at: https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities. Each lease would include the following attachments:
1. Addendum A (``Description of Leased Area and Lease
Activities'');
2. Addendum B (``Lease Term and Financial Schedule'');
3. Addendum C (``Lease-Specific Terms, Conditions, and
Stipulations'');
4. Addendum D (``Project Easement''); and
5. Addendum E (``Rent Schedule'').
Addenda A, B, and C provide detailed descriptions of proposed lease
terms and conditions. Addendum D will be completed at the time of COP
approval or approval with modifications. Addendum E will be completed
after 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.
a. Proposed Lease Stipulations: BOEM proposes to add or revise the
following lease stipulations or provisions from previous commercial
leases:
i. Fisheries Communication Plan: BOEM proposes to include 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).
ii. Native American Tribes Communication Plan (NATCP): BOEM
proposes to revise the NATCP requirements in previous commercial leases
to require the Lessee to work with BOEM and its Gulf of Mexico Region
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.
iii. Protected Species: The Lessee must coordinate with BOEM, the
National Marine Fisheries Service (NMFS), and the U.S. Fish and
Wildlife Service (USFWS) prior to designing and conducting biological
surveys intended to support offshore renewable energy plans that could
interact with protected species.
iv. Marine Mammal Protection Act Authorization(s): If the Lessee is
required to obtain an authorization pursuant to section 101(a)(5) of
the Marine Mammal Protection Act prior to conducting survey activities
in support of plan submittal, the Lessee must provide to the Lessor a
copy of the authorization prior to commencing these activities.
v. Site Characterization: BOEM updated language regarding survey
plans and pre-survey meetings (section 2.1 of Addendum C of the Lease).
BOEM

[[Page 11948]]

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. The change would allow lessees more flexibility in
scheduling Tribal pre-survey meetings, possibly holding them earlier
and allowing greater opportunity for Tribal input.
vi. Siting Conditions: BOEM included a lease stipulation that
outlines situations when lessees may not construct surface facilities.
vii. Research Access: This stipulation would make explicit BOEM's
reservation of the right to access the lease area for purposes of
future research and other activities.
viii. Project Labor Agreements and Supply Chain: BOEM 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. To advance this vision, BOEM is
proposing two lease stipulations that would encourage construction
efficiency for projects and contribute towards establishing a domestic
supply chain:
1. The first stipulation would require Lessees to make every
reasonable effort to enter 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.
2. 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.
ix. Stakeholder and Ocean User Engagement Summary: BOEM proposes to
require the lessee to include a stakeholder and ocean user engagement
summary as part of their progress reporting requirements (section 2.2
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.
x. Confirmed Munitions and Explosives of Concern (MEC) and
Unexploded Ordnance (UXO) Notification: BOEM proposes to include a
stipulation in the lease that would require notification for confirmed
MEC and UXO. The lessee would be required to notify BOEM, the Bureau of
Safety and Environmental Enforcement (BSEE), and relevant agency
representatives when a confirmed discovery is made.
xi. Proposed Information to Lessees: BOEM proposes to inform
potential lessees of the Significant OCS Sediment Resource Areas.
Bidders and lessees are advised that BOEM has designated lease blocks
in the GOMR as Significant OCS Sediment Resource Areas. One or more of
these blocks may be within the lease sale area. If it is determined
that significant OCS sediment resources may be impacted by a proposed
activity, the BOEM and/or BSEE Gulf of Mexico Region may require you to
undertake measures deemed economically, environmentally, and
technically feasible to protect the resources to the maximum extent
practicable. For the most current listing of significant OCS sediment
resource blocks, see https://www.boem.gov/marine-minerals/managing-multiple-uses-gulf-mexico.

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 information.
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 102,480 acres Lease Area of OCS-G 37334, the rent payment would be
$307,440 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
(or modification thereof) that describes the project easement as
outlined in 30 CFR 585.508. Annual rent for a project easement that is
200 feet wide, centered on the transmission cable, would be $70 per
statute mile. For any additional acreage, the lessee must pay the
greater of $5 per acre per year or $450 per year.
b. Operating Fee: For purposes of calculating the initial annual
operating fee payment under 30 CFR 585.506, BOEM applies an operating
fee rate to a proxy for the wholesale market value of the electricity
expected to be generated from the project during its first 12 months of
operations. This initial payment will be prorated to reflect the period
between the commencement of commercial operations and the Lease
Anniversary. The initial annual operating fee payment will be due
within 45 calendar days of the commencement of commercial operations.
Thereafter, subsequent annual operating fee payments will be due on or
before the Lease Anniversary.
The subsequent annual operating fee payments will be calculated by
multiplying the operating fee rate by the imputed wholesale market
value of the projected annual electric power production. For the
purposes of this calculation, the imputed market value will be the
product of the project's annual nameplate capacity, the total number of
hours in the year (8,760), the capacity factor, and the annual average
price of electricity derived from a regional wholesale power price
index. For example, the annual operating fee for a 976-megawatt (MW)
wind facility operating at a 40 percent capacity (i.e., capacity factor
of 0.4) with a regional wholesale power price of $40 per megawatt hour
(MWh) and an operating fee rate of 0.02 would be calculated as follows:

[[Page 11949]]

[GRAPHIC] [TIFF OMITTED] TN24FE23.097

i. Operating Fee Rate: The operating fee rate is the share of the
imputed wholesale market value of the projected annual electric power
production due to the Office of Natural Resources Revenue as an annual
operating fee. For the Lease Areas, BOEM proposes to set the fee rate
at 0.02 (2 percent) for the entire life of commercial operations.
ii. Nameplate Capacity: Nameplate capacity is the maximum rated
electric output, expressed in MW, which the turbines of the wind
facility under commercial operations can produce at their rated wind
speed as designated by the turbine's manufacturer. The nameplate
capacity available at the start of each year of commercial operations
on the lease will be the capacity provided in the Fabrication and
Installation Report (FIR). For example, if the lessee installed 100
turbines as documented in its FIR, and each is rated by the
manufacturer at 12 MW, the nameplate capacity of the wind facility
would be 1,200 MW.
iii. Capacity Factor: The capacity factor relates to the amount of
energy delivered to the grid during a period of time compared to the
amount of energy the wind facility would have produced at full capacity
during that same period of time. This factor is represented as a
decimal between zero and one. There are several reasons why the amount
of power delivered is less than the theoretical 100 percent of
capacity. For a wind facility, the capacity factor is mostly determined
by the availability of wind. Transmission line loss and downtime for
maintenance or other purposes also affect the capacity factor.
BOEM proposes to set the capacity factor at 0.4 (i.e., 40 percent)
for the year in which the commercial operation date occurs and for the
first 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.
BOEM may make similar adjustments to the capacity factor once every 5
years thereafter.
iv. Wholesale Power Price Index: Under 30 CFR 585.506(c)(2)(i), the
wholesale power price, expressed in dollars per MWh, is determined at
the time each annual operating fee payment is due. For the leases
offered in this sale, BOEM proposes to use the ERCOT (Texas Coast
Region) and Louisiana MISO (Louisiana Coast Region) average price per
MW from the Enerfax power prices dataset within Hitachi's ABB Velocity
Suite. A similar price dataset may also be used and may be posted by
BOEM at boem.gov for reference.
c. 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 would 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. BOEM would accept only an original, executed paper copy of the
BFF. The BFF would be required to be executed by an authorized
representative listed in the qualification package on file with BOEM.

X. Bid Deposit

Each qualified bidder must submit a bid deposit no later than the
date listed in the FSN. Typically, 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 other bidders once BOEM has announced the provisional winner.
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 one Lease Area or $4,000,000 bid deposit for
two Lease Areas (one per region). In such a circumstance, BOEM would
reserve the right to offer a lease to the next highest bidder as
determined by BOEM.

XI. Minimum Bid

The minimum bid is the lowest dollar amount per acre that BOEM will
accept as a winning bid and is the amount at which BOEM will start the
bidding in the auction. BOEM proposes a minimum bid of $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, with a multiple-factor bidding system, for this lease
sale. Under BOEM's proposal, the bidding system for this lease sale
would be a multiple-factor combination of monetary and non-monetary
factors. The bid made by a particular bidder in each round would
represent the sum of the monetary factor (cash bid) and the value of
any non-monetary factors in the form of bidding credits. BOEM proposes
to start the auction using the minimum bid price for the Lease Area and
to increase that price incrementally until

[[Page 11950]]

no more than one active bidder per lease area remains in the auction.
b. The Auction: Using an online bidding system to host the auction,
BOEM will start the bidding for Lease OCS-G 37334 through 37336 as
described below.

----------------------------------------------------------------------------------------------------------------
Lease area name Lease area ID Acres Minimum bid
----------------------------------------------------------------------------------------------------------------
Texas Coast Region:
NAME.................................. OCS-G37335.......................... 102,480
NAME.................................. OCS-G37336.......................... 96,786
Louisiana Coast Region:
NAME.................................. OCS-G37334.......................... 102,480
----------------------------------------------------------------------------------------------------------------

The precise auction process will depend on limitations, to be
established in the FSN, on how many Lease Areas each bidder can bid for
and win. BOEM is proposing a `one-per-customer' rule for each Region.
While BOEM is proposing to offer one lease per region, if an applicable
alternative is ultimately selected, then BOEM's proposal would be that
each bidder would be eligible to bid for at most one of the two Lease
Areas in the offered Texas Coast Region at a time and, ultimately, to
acquire at most one of the two Texas Coast Region Lease Areas. Each
bidder would also be eligible to bid for the one Lease Area in the
offered Louisiana Coast Region and, ultimately, to acquire the
Louisiana Coast Region Lease Area. During the comment period, BOEM is
also seeking comments on alternative options for the auction format in
which the limitations on bidding are varied, as described in Section
XII.c below.
Depending on the ultimate selection of the number of lease areas,
BOEM may conduct the auction in one of two ways. First, the two regions
(Louisiana Coast and Texas Coast) would be offered in two separate
auctions that would be conducted simultaneously, each with a `one-per-
customer' rule. BOEM would require a bidder to indicate in its BFF the
regions on which it planned to bid and to submit a deposit for each
region. Bidders eligible to bid in each auction would be required to
check both web pages of the auction website: the Louisiana Coast
auction page and the Texas Coast auction page. Bidders eligible to bid
in each auction must select the correct region's page from the auction
homepage before placing a bid. A bidder's eligibility is region-
specific. BOEM would not permit bidders to ``switch'' between regions
during the auction, i.e., if a bidder elects to bid in only one region,
it may not bid in the other region at any time in the auction. Once a
bidder places an exit bid in a region (or submits no bid in the region
at all, in a round when the bidder is eligible to bid), the bidder
would be ineligible to continue to bid in that region. Second, BOEM
could hold the auction as one auction with both areas offered. In this
event, BOEM suggests reviewing the rules outlined in the Carolina Long
Bay FSN.\3\
---------------------------------------------------------------------------

\3\ https://public-inspection.federalregister.gov/2022-06507.pdf.
---------------------------------------------------------------------------

Each auction would be conducted in a series of rounds. At the start
of each round, BOEM would state an asking price for each Lease Area. If
a bidder is willing to meet that asking price for one of the Lease
Areas, it would indicate its intent by submitting a bid equal to the
asking price for the selected Lease Area. A bid at the asking price is
referred to as a ``live bid.'' If the bidder has qualified for a non-
monetary credit, it will meet the asking price by submitting a
multiple-factor bid--that is, a live bid that consists of a monetary
(cash bid) amount and a non-monetary credit (depending on the bidder's
qualification for bidding credits), the sum of which equals the asking
price. Bidders without a non-monetary credit would submit a cash bid
amount equal to the asking price. To participate in the next round of a
given auction, a bidder would be required to have submitted a live bid
for one of the Lease Areas (or have a carried-forward bid) in each
previous round.
As long as there are two or more live bids (including carried-
forward bids) for at least one of the Lease Areas in the given auction,
the auction would move to the next round. BOEM would raise the asking
price for each Lease Area that received two or more live bids in the
previous round. Asking price increments would 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 would reserve the right to increase or
decrease bidding increments as it deems appropriate. If there was only
one live bid (including carried-forward bids) or no live bids for a
Lease Area in the previous round, the asking price would not be
increased.
A live bid would automatically be carried forward if it was
uncontested in the previous round (i.e., if it was the only live bid
for that Lease Area in the previous round), and the bidder who placed
the uncontested bid would not be permitted to place any other bid in
the current round of the given auction. Conversely, if a live bid was
contested in the previous round (i.e., if there was at least one other
live bid for the same Lease Area, including carried-forward bids), each
bidder who placed a contested live bid in the previous round would be
free to bid on any Lease Area in the current round of the given
auction, at the new asking prices.
If a bidder decides to stop bidding before the final round of a
given auction, there could be circumstances in which the bidder could
nonetheless win a lease. For example, that bidder could be ultimately
selected in stage two of the winner determination that is described in
detail below, or the winning bidder might be disqualified at the award
stage of the auction. In these circumstances, the bidder would be bound
by its bid and thus obligated to pay the full bid amount. Bidders,
therefore, are bound by any of their bids up until the auction results
are finalized.
Between rounds, BOEM would disclose to all bidders that submitted
bids: (1) the number of live bids (including carried-forward bids) for
each Lease Area in the previous round of the auction (i.e., the level
of demand at the asking price); and (2) the asking price for each Lease
Area in the upcoming round of the auction.
In any round after the first round, a bidder would be allowed to
submit an ``exit bid'' (also known as an ``intra-round bid''), but only
for the same Lease Area that received the bidder's contested live bid
in the previous round. An exit bid is a bid that is greater than the
previous round's asking price, but less than the current round's asking
price. An exit bid is not a live bid, and it represents the final bid
that a bidder may submit in the given auction. A bidder would not be
allowed to submit both an exit bid on one of the Lease Areas and a live
bid on a different Lease Area in the given auction. During the auction,
the exit bid would be seen only by BOEM and not by other bidders.

[[Page 11951]]

A given auction would end when a round occurs in which each of the
Lease Areas in the auction receives one or zero live bids (including
carried-forward bids), regardless of the number of exit bids on any
Lease Area. Because the Texas Coast Region and Louisiana Coast Region
Lease Areas would be offered in two separate auctions, one of these
separate auctions may end before the other. After the bidding ends,
BOEM would determine the provisionally winning bid for each Lease Area
in the given auction by the following two-stage procedure, applying the
procedure separately to each of the two separate auctions.
In stage one, the highest bid (live bid or exit bid) received for
each Lease Area in the final round would be designated the
provisionally winning bid, if there is a single highest bid. In the
event of a tie (i.e., if two or more bidders submitted identical
highest exit bids for the same Lease Area), the selection of one of the
highest exit bids would be deferred until stage two.
In stage two, BOEM would consider bids from all bidding rounds for
Lease Areas that were not assigned in stage one and were placed by
bidders who were not assigned one of the Lease Areas in stage one. BOEM
would select the combination of such bids that maximizes the sum of the
bid amounts of the selected bids, subject to the following constraints:
(1) Each Lease Area that received multiple highest exit bids in the
final round (but no live bid) must be assigned to one of the bidders
that submitted the highest exit bid; (2) at most one bid from each
bidder can be selected; and (3) at most one bid for each Lease Area can
be selected. If there is a unique combination of bids that solves this
maximization problem, then these bids would be deemed to be the
remaining provisionally winning bids. If two or more combinations of
bids tie by producing the same maximized sum of bid amounts, the
auction system would select one of the combinations by use of
pseudorandom numbers. The provisional winners would pay the amounts of
their provisionally winning bids, or risk forfeiting their bid
deposits.
A provisional winner will be disqualified if it is subsequently
found to have violated auction rules or BOEM regulations, or otherwise
engaged in conduct detrimental to the integrity of the competitive
auction. If a bidder submits a bid that BOEM determines to be a
provisionally winning bid, the bidder must sign the applicable lease
documents, post financial assurance, and submit the outstanding balance
(if any) of its winning bid (i.e., winning monetary bid minus the
applicable bid deposit) within 10-business days of receiving the lease
copies, pursuant to 30 CFR 585.224. BOEM would reserve the right not to
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, post adequate financial assurance, pay the balance of its winning
bid, or otherwise comply with applicable regulations or the terms of
the FSN. In that case, the bidder would forfeit its bid deposit.
BOEM would publish the provisional winners and the provisionally
winning bid amounts shortly after the conclusion of the sale. Full bid
results, including round-by-round results of the entire sale, including
exit bids, would be published on BOEM's website after a review of the
results and announcement of the provisional winner.
c. Alternative options for the auction format: BOEM is also seeking
comments on alternative options for the auction format, including two
specific options. In the first alternative option, the two Lease Areas
would be offered in a single auction and a `one-per-customer' rule
would be applied overall, i.e., all the Lease Areas would be offered in
a single auction, and there would be no distinctions made between the
Louisiana Coast and Texas Coast Regions within the auction process.
Under this alternative, a bidder would not be required to select in its
BFF the region in which it is bidding and would supply a single
deposit; a bidder could switch its uncontested bids among any of the
Lease Areas between rounds. The auction would then proceed similarly as
described in the California FSN (Section XIII(e)-(h), 87 FR 64106-
64107).
In the second alternative option, the two Lease Areas would be
offered in a single auction, but bidders could be eligible to bid for
both Lease Areas. As in the first alternative, all of the Lease Areas
would be offered in a single auction, and there would be no
distinctions made between the Louisiana Coast and Texas Coast Regions
within the auction process. A bidder would not be required to select in
its BFF the region in which it is bidding and would supply as many
deposits as the number of Lease Areas on which it wishes to be eligible
to bid for and win. In this case, the auction would proceed similarly
as described in the Carolina Long Bay FSN (``The Auction'' section, 87
FR 17332-17334).
d. Additional Information Regarding the Auction Format:
i. Authorized Individuals and Bidder Authentication: A company that
is eligible to participate in the auction would identify on its BFF up
to three individuals who would be authorized to bid on behalf of the
company, including their names, business telephone numbers, and email
addresses. After BOEM processes the bid deposits, the auction
contractor would send several emails to the authorized individuals. The
emails would contain user login information and instructions for
accessing the bidder manual for the auction system and any auction
system technical supplement (ASTS) that may be issued.
The auction system would require software tokens for two-factor
authentication. To set up the tokens, authorized individuals would
download an app onto their smartphone or tablet with a recent operating
system. One of the emails sent to authorized individuals would contain
instructions for installing the app and the credentials needed to
activate the software token. A short telephone conversation with the
auction contractor could also be required to use the credentials. The
login information, along with the tokens, would be tested during the
mock auction. If an eligible bidder failed to submit a bid deposit or
did not participate in the auction, BOEM would de-activate that
bidder's tokens and 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 would 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 would use the messaging feature to
notify bidders that a revision has been made and will direct bidders to
the relevant page. BOEM would also use the messaging system for other
updates during the auction.
Bidders could place bids at any time during the round. At the top
of the bidding page, a countdown clock shows how much time remains in
each round. Bidders would have until the scheduled time to place bids.
Bidders should do so according to the procedures described in the FSN
and any ASTS issued. Information about the round results would be made
available only after the round has closed, so there is no strategic
advantage to placing bids early or late in the round.
Any ASTS would elaborate on the auction procedures described in
this PSN. In the event of any inconsistency between the Bidder Manual,
any ASTS

[[Page 11952]]

issued, and the FSN, the FSN is controlling.
iv. Alternate Bidding Procedures: Redundancy is the most effective
way to mitigate technical and human issues during an auction. Bidders
should strongly consider authorizing more than one individual to bid in
the auction and confirm during the mock auction that each authorized
individual is able to access the auction system. A 4G card or other
form of wireless access may prove helpful in the event that the
bidder's primary internet connection should fail. As a last resort, an
authorized individual facing technical issues may request to submit its
bid by telephone. 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 is necessary. BOEM may, in its sole discretion, permit or
refuse to accept a request for the placement of a bid using this
alternate telephonic bidding procedure.

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
and bidding credit, as applicable). 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 bonus bid, following the
detailed instructions contained the ``Instructions for Making
Electronic Payments'' available on BOEM's website at: https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/EFT-Payment-Instructions.pdf.
BOEM will not execute the lease until the three requirements above
have been satisfied. BOEM may extend the 10-business-day deadline if
BOEM determines the delay was caused by events beyond the provisional
winner's control.
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 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 for the Lease Areas in the GOM.
The FSN will be published in the Federal Register at least 30 calendar
days before the lease sale is conducted and will provide the date and
time of the auction.

XVIII. Changes to Auction Details

The regional director of BOEM's New Orleans, Louisiana Office has
the discretion to change any auction detail specified in the FSN,
including the date and time, if the regional director deems events
outside BOEM's control may interfere with a fair and proper lease sale.
Such events may include, but are not limited to, natural disasters
(e.g., earthquakes, hurricanes, floods, and blizzards), wars, riots,
act of terrorism, fire, strikes, civil disorder, Federal Government
shutdowns, cyberattacks against relevant information systems, or other
events of a similar nature. In case of such events, BOEM would notify
all qualified bidders via email, phone, and BOEM's website at: https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities.
Bidders should call (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

[[Page 11953]]

apply for reconsideration by the Director under 30 CFR 585.225 as
follows:
(a) If BOEM rejects your bid, BOEM will provide a written statement
of the reasons and will refund any money deposited with your bid,
without interest.
(b) You may ask the BOEM Director for reconsideration, in writing,
within 15 business days of bid rejection. The Director will send you a
written response either affirming or reversing the rejection.

XX. Public Participation

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

XXI. Protection of Privileged or Confidential Information

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

(Authority: 43 U.S.C. 1337(p); 30 CFR 585.211 and 585.216)

Elizabeth A. Klein,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2023-03842 Filed 2-23-23; 8:45 am]
BILLING CODE 4340-98-P