[Federal Register Volume 89, Number 85 (Wednesday, May 1, 2024)]
[Notices]
[Pages 35222-35236]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-09390]



[[Page 35222]]

-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2024-0026]


Atlantic Wind Lease Sale 11 (ATLW-11) for Commercial Leasing for 
Wind Power Development on the U.S. Gulf of Maine Outer Continental 
Shelf--Proposed Sale Notice

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Proposed sale notice; request for comments.

-----------------------------------------------------------------------

SUMMARY: The Bureau of Ocean Energy Management (BOEM) proposes to hold 
Atlantic Wind Lease Sale 11 (ATLW-11) and offer multiple lease areas 
(Lease Areas) for commercial wind power development on the U.S. Outer 
Continental Shelf (OCS) in the Gulf of Maine. The proposed Lease Areas 
are located in the Gulf of Maine offshore the States of Maine and New 
Hampshire, and the Commonwealth of Massachusetts. This Proposed Sale 
Notice (PSN) contains information pertaining to the proposed Lease 
Areas, certain lease provisions and conditions, auction details, lease 
forms, criteria for evaluating competing bids, award procedures, appeal 
procedures, and lease execution procedures. The issuance of any lease 
resulting from a sale would not constitute approval of project-specific 
plans to develop floating offshore wind energy. Such plans, if 
submitted by the Lessee, would be subject to subsequent environmental, 
technical, and public reviews prior to a BOEM decision whether to 
approve them. BOEM is proposing an ascending clock auction with 
multiple-factor bidding.

DATES: BOEM must receive your comments no later than July 1, 2024. All 
comments received during the comment period will be made available to 
the public and considered prior to publication of any Final Sale Notice 
(FSN). For prospective bidders who want to participate in this lease 
sale, unless you have already received confirmation from BOEM that you 
are qualified to participate in the Gulf of Maine auction, BOEM must 
receive your qualification materials no later than July 1, 2024, and, 
prior to the auction, BOEM must confirm your qualification to bid in 
the auction.

ADDRESSES: You may submit written comments on the PSN in one of the 
following ways:
     Electronically: https://www.regulations.gov. In the search 
box, enter ``BOEM-2024-0026'' and click ``Search.'' Follow the 
instructions to submit public comments.
     Written Comments: Submit written comments in an envelope 
labeled ``Comments on Gulf of Maine Lease Sale PSN'' and deliver them 
by U.S. mail or other delivery service to: Bureau of Ocean Energy 
Management, Office of Renewable Energy Programs, 45600 Woodland Road, 
Mailstop: VAM-OREP, Sterling, VA 20166.
    Qualifications Materials for Potential Lease Sale Participants: To 
qualify to participate in a lease sale following the publication of 
this PSN, qualification materials should be developed in accordance 
with the guidelines at https://www.boem.gov/Renewable-Energy-Qualification-Guidelines. Qualification materials should be submitted 
electronically to boem.gov">renewableenergy@boem.gov, or in an envelope labeled, 
``Qualification Materials for Gulf of Maine Wind Energy Lease Sale'' to 
Bureau of Ocean Energy Management, Office of Renewable Energy Programs, 
45600 Woodland Road, VAM-OREP, Sterling, Virginia 20166.
    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: Zachary Jylkka, Bureau of Ocean Energy 
Management, boem.gov">Zachary.Jylkka@boem.gov or (978) 491-7732; or Gina Best, 
Bureau of Ocean Energy Management, boem.gov">Gina.Best@boem.gov or (703) 787-
1341.

SUPPLEMENTARY INFORMATION:

I. Background

    a. Request for Interest (RFI): On August 19, 2022, BOEM published 
an RFI in the Federal Register (87 FR 51129), to assess interest in, 
and to invite public comment on, possible commercial wind energy 
leasing on the Gulf of Maine OCS. The RFI Area consisted of 
approximately 13.7 million acres. In response to the RFI, BOEM received 
nominations of areas of interest from five developers, all of which 
BOEM deems legally, technically, and financially qualified. In addition 
to gauging interest in the development of commercial wind energy leases 
within the RFI Area, BOEM also sought feedback from Tribes, 
stakeholders, industry, and others regarding the location and size of 
specific areas they wished to be included in (or excluded from) a 
future offshore wind energy lease sale, along with other planning 
considerations. BOEM received 51 unique comments on the RFI. Comments 
and nominations are available at https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine.
    b. Call for Information and Nominations (Call): On April 25, 2023, 
BOEM published a Call for Information and Nominations for Commercial 
Leasing for Wind Power Development on the Gulf of Maine'' (see 88 FR 
25427). BOEM received 127 unique comments on the Call. Seven developers 
nominated areas for a commercial wind energy lease within the Call 
Area.\1\
---------------------------------------------------------------------------

    \1\ Comments can be viewed at https://www.regulations.gov/docket/BOEM-2023-0025/comments. A map of the nominations received 
can be viewed at https://www.boem.gov/sites/default/files/images/gulf_of_maine_call_nominations_heatmap.png.
---------------------------------------------------------------------------

    c. Area Identification (Area ID): An Area ID determination is a 
required regulatory step under the renewable energy competitive leasing 
process used to identify areas for environmental analysis and 
consideration for leasing. After the close of the Call comment period, 
BOEM initiated the Area ID process using information and input from 
stakeholders received to date.
    BOEM and the National Oceanic and Atmospheric Administration's 
National Centers for Coastal Ocean Science (NCCOS) collaborated in 
employing an ocean planning tool (the NCCOS model) to help identify an 
area that appears most suitable for floating offshore wind energy 
leasing and development in the Gulf of Maine. The Area ID process seeks 
to identify and minimize potential conflicts in ocean space as well as 
to mitigate interactions with other users and adverse interactions with 
the environment; the NCCOS model supports that effort. BOEM employed 
the NCCOS model during two distinct steps of the Area ID process: 
first, to model relative suitability within the boundaries of the Call 
Area to identify the Draft Wind Energy Area (WEA) and Secondary Areas; 
and second, to model the relative suitability within the boundaries of 
the Draft WEA (plus Secondary Area C).
    On October 19, 2023, BOEM announced the Gulf of Maine Draft WEA and 
opened a 30-day public comment period. The methodology used to 
delineate the Gulf of Maine Draft WEA is outlined in the ``Draft NCCOS 
Report: A Wind Energy Area Siting Analysis for the Gulf of Maine Call 
Area.'' \2\ The Draft WEA covered approximately 3.5 million acres. BOEM 
considered the following

[[Page 35223]]

non-exclusive information sources when identifying the Draft WEA: 
comments and nominations received on the Call; information from the 
Gulf of Maine Intergovernmental Renewable Energy Task Force; input from 
federally recognized Tribes; input from State and Federal agencies; 
comments from stakeholders and ocean users, including the maritime 
community, offshore wind developers, and the commercial and 
recreational fishing industry; input from State and local governments 
on renewable energy goals; and information on domestic and global 
offshore wind market and technological trends.
---------------------------------------------------------------------------

    \2\ Available at https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/Gulf_of_Maine_Draft%20WEA_Report_NCCOS_0.pdf.
---------------------------------------------------------------------------

    d. BOEM completed the Area ID process after considering additional 
input received from stakeholders during the Draft WEA comment period. 
BOEM published the Final WEA on March 15, 2024. The Final WEA comprises 
approximately 2 million acres and represents an 80% reduction from the 
size of the Call Area and a 43% reduction from the Draft WEA. The Final 
WEA has the potential to support generation of 32 gigawatts (GW) of 
clean energy, surpassing current State goals for offshore wind energy 
in the Gulf of Maine (13-18 GW, based on Massachusetts and Maine's 
offshore wind goals and estimates provided by the regional grid 
operator, ISO-New England). The size of the Final WEA allows BOEM to 
consider additional ways to reduce conflicts with users and resources, 
while also supporting the region's renewable energy goals. For 
additional information, the Gulf of Maine Area ID documentation can be 
found at https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine.
    e. Environmental Reviews: On March 18, 2024, BOEM published a 
notice of intent to prepare an environmental assessment (EA) to 
consider potential environmental impacts 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 (89 FR 19354). The March 18 
notice initiated a public scoping process, with BOEM seeking comments 
on the issues and alternatives that should inform the EA. Public 
comments on the notice can be found at https://www.regulations.gov in 
docket no. BOEM-2024-0020. In addition to the preparation of the Draft 
EA, and compliance with threatened and endangered species requirements 
for certain data collection activities associated with OCS leasing,\3\ 
BOEM has initiated other required consultations under the Endangered 
Species Act, the Magnuson-Stevens Fishery Conservation and Management 
Act, and the Coastal Zone Management Act. The EA and associated 
consultations will inform BOEM's decision whether to proceed with a 
final sale notice (FSN). BOEM will solicit comments on the EA before it 
is finalized. BOEM will conduct additional environmental reviews upon 
receipt of a lessee's Construction and Operations Plan (COP) if one or 
more of the proposed leases reach that stage of development.
---------------------------------------------------------------------------

    \3\ See https://www.boem.gov/sites/default/files/documents/renewable-energy/OSW-surveys-NLAA-programmatic.pdf.
---------------------------------------------------------------------------

    f. Phased Leasing: BOEM is proposing lease areas that we believe 
represent a balance between providing sufficient acreage to meet 
regional renewable energy demands and known spatial use conflicts. BOEM 
may propose additional lease sales within the region at a future date; 
however, the timing and scope of any future sale will be informed by 
the results of this proposed Gulf of Maine sale, as well as the 
position of potentially affected Tribes, Gulf of Maine States, 
stakeholder engagement, relevant market conditions, and regional energy 
goals.

II. Areas Proposed for Leasing

    Within the Final WEA, BOEM proposes eight areas for leasing, as 
described in Table 1. Descriptions of the proposed Lease Areas may be 
found in Addendum A of each of the proposed leases, located on BOEM's 
website at https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine. Several leases are subject to a proposed lease 
stipulation that would prohibit surface or subsurface development in 
portions of the lease that are adjacent to corridors BOEM created 
between proposed leases to facilitate existing and future vessel 
transit (section II-d). For those leases, the total ``developable 
acres'' are less than the total ``lease acres'' as described in Table 
1.

                     Table 1--Gulf of Maine Proposed Lease Areas, Acres, and Assigned Region
----------------------------------------------------------------------------------------------------------------
                                                                                                       Total
                 Lease area ID                               Region                 Total lease     developable
                                                                                       acres           acres
----------------------------------------------------------------------------------------------------------------
OCS-A 0562....................................  North...........................         121,339         121,339
OCS-A 0563....................................  North...........................         132,369         132,369
OCS-A 0564....................................  South...........................         110,308         105,499
OCS-A 0565....................................  South...........................         115,290         115,290
OCS-A 0566....................................  South...........................         127,388         127,388
OCS-A 0567....................................  South...........................         123,118         117,391
OCS-A 0568....................................  South...........................         134,149         123,389
OCS-A 0569....................................  South...........................         106,038         101,757
                                                                                 -------------------------------
    Total.....................................  ................................         969,999         944,422
----------------------------------------------------------------------------------------------------------------


[[Page 35224]]

[GRAPHIC] [TIFF OMITTED] TN01MY24.046

Figure 1: Gulf of Maine Proposed Lease Areas

    a. Map of the Area Proposed for Leasing: In addition to Figure 1, 
maps of the Lease Areas, and various GIS spatial files may be found on 
BOEM's website at https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine.
    b. Potential Future Restrictions to Ensure Navigational Safety: 
Potential bidders are advised of the possibility that portions of the 
Lease Areas may not be available for future development (i.e., 
installation of wind energy facilities) because of navigational safety 
concerns. While the Final WEA avoids the vast majority of the U.S. 
Coast Guard's (USCG) Maine, New Hampshire, Massachusetts Port Access 
Route Study proposed safety fairways, there is one small area of 
overlap directly northeast of the Cashes Ledge Groundfish Closure area. 
This area now falls within the northern portions of leases OCS-A 0562 
and 0563. BOEM will coordinate with USCG as its rulemaking process to 
designate possible safety fairways continues, and 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.
    BOEM has also included a proposed lease stipulation ``Surface 
Structure Layout and Orientation'' (see Addendum C, section 10 in the 
Gulf of Maine proposed leases), which would require lessees with 
directly adjacent leases (i.e., OCS-A 0562 and 0563; OCS-A 0565 and 
0566) to design a surface structure layout that contains two common 
lines of orientation across the adjacent leases (as described in 
Navigation and Vessel Inspection Circular 02-23). If the lessees cannot 
agree on such a layout, each lessee would be required to incorporate a 
1 nm setback from the boundary of the adjacent lease within which 
surface structures are prohibited. This would create a minimum 2 nm 
distance between the proposed facilities of each lessee along the lease 
boundary. These setback distances are based on USCG recommendations for 
prior lease sales for which development was expected to include fixed 
offshore wind foundations (BOEM has included similar lease stipulations 
for such sales where there were adjacent leases). Given the expectation 
that offshore wind development in the Gulf of Maine will necessitate 
floating foundations, BOEM requests comments on this proposed 
stipulation, particularly the required setback distances and whether 
setbacks should prohibit both surface and subsurface structures (i.e., 
floating foundations, mooring lines, anchor structures, or inter-array 
cables).
    c. Corridors between Leases: Members of the fishing community have 
requested that offshore wind energy facilities be designed in a manner 
that, among other things, provides for uninterrupted transit to fishing 
grounds where relevant. Within the southern region of the Final WEA, 
east of Massachusetts, BOEM has created three corridors between leases 
to facilitate existing and future transit through proposed lease 
areas.\4\ These areas occur in a Northwest to Southeast direction, as 
well as in an East and West direction, and have a minimum width of 2.5 
nautical miles (nm). The width of these areas was adapted from the New 
York Bight leasing process, which resulted in 2.44 nm corridors between 
lease areas (see https://www.boem.gov/renewable-energy/state-activities/new-york-bight). As stated in the New York Bight FSN (BOEM-
2022-0001), BOEM used

[[Page 35225]]

calculations and guidelines published by the Permanent International 
Association of Navigation Congresses World Association of Waterborne 
Transport Infrastructure and Maritime Institute in the Netherlands, as 
well as the USCG draft Port Access Route Study (USCG-2020-0172) to 
inform that analysis.
---------------------------------------------------------------------------

    \4\ BOEM does not have the authority to designate transit lanes. 
The United States Coast Guard's (USCG) authority to provide safe 
access routes for the movement of vessel traffic is found in the 
Ports and Waterways Safety Act. See 46 U.S.C. 70003.
---------------------------------------------------------------------------

    Bidders should be aware that BOEM may include a lease stipulation 
in the FSN that addresses corridors between leases, pending the outcome 
of additional discussions with ocean users and stakeholders as well as 
consideration of comments submitted in response to this PSN.
    d. Areas of No Surface or Subsurface Occupancy: To accommodate the 
desired distances between surface and subsurface structures (i.e., 2.5 
nm width of the designated corridors between leases described above), 
select portions of the lease areas in the southern portion of the Gulf 
of Maine WEA (OCS-A 0564, 0567, 0568, 0569) will be offered for sale, 
but no surface or subsurface occupancy will be permitted, as described 
in Addendum A of each respective lease.
    e. Stellwagen Bank National Marine Sanctuary: The Gulf of Maine WEA 
lies adjacent to the Stellwagen Bank National Marine Sanctuary. Should 
a lease be issued within the WEA, future offshore wind development may 
necessitate installation of energy transmission cables within the 
sanctuary boundaries in identified cable corridors. NOAA has advised 
BOEM that they may consider authorizing installation of energy 
transmission cables within sanctuary boundaries under the authority of 
the National Marine Sanctuaries Act, through one or more of the 
following mechanisms--General Permits, Authorizations, Certifications, 
and Special Use Permits.
    f. Potential Future Restrictions to Mitigate Potential Conflicts 
with Department of Defense (DOD) Activities: Those interested in 
bidding should be aware of potential conflicts with DOD's existing uses 
of the OCS. BOEM coordinates with DOD throughout the leasing process. 
This included consultation with the Military Aviation and Installation 
Assurance Siting Clearinghouse, which conducted a DOD assessment of the 
Gulf of Maine Draft WEA. The assessment identified potential impacts, 
which are described below.
    i. Air Surveillance and Radar: The North American Aerospace Defense 
Command (NORAD) mission may be affected by development of the Lease 
Areas. Similar impacts have been encountered with other Lease Areas 
along the Atlantic Coast and have been largely if not entirely 
mitigated. 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) \5\ 
and overlapping radar coverage. For projects where RAM mitigation is 
acceptable, BOEM anticipates including the following project approval 
conditions:
---------------------------------------------------------------------------

    \5\ RAM is the technical process designed to minimize the 
adverse impact of obstruction interference on a radar system.
---------------------------------------------------------------------------

    (1) Lessee will notify NORAD when the project is within 30-60 days 
of completion of commissioning of the last wind turbine generator (WTG) 
(meaning every WTG in the Project is installed with potential for blade 
rotation), and again when the project is complete and operational, for 
RAM scheduling;
    (2) Lessee will contribute funds to DOD in the amount of no less 
than $80,000 toward the cost of DOD's execution of the RAM procedures 
for each radar system affected; and
    (3) Lessee will curtail wind turbine operations for national 
security or defense purposes as described in the lease.
    ii. Department of Navy operations: While the Navy did not identify 
any conflicts with the Final WEA, mitigations to resolve potential 
conflicts with ship testing may be necessary depending on the specific 
projects proposed within the Lease Areas.
    BOEM may require the lessee to enter into an agreement with DOD to 
implement any necessary conditions and mitigate any identified impacts. 
BOEM will further coordinate with DOD and the lessee to eliminate 
potential conflicts throughout the project review stage, which may 
result in adding mitigation measures or terms and conditions as part of 
any plan approval.
    g. Potential Future Restrictions to Mitigate Potential Conflicts 
with Sand Resources: Potential bidders are advised that BOEM has 
identified sand resource areas in aliquots offshore the Gulf of Maine 
(MMIS Application https://mmis.doi.gov/BOEMMMIS). OCS sand resource 
areas are composed of sand deposits found on or below the surface of 
the OCS seabed. There is potential for sand resources to exist in other 
areas in the Gulf of Maine not currently identified in aliquots. If it 
is determined that accessible and significant OCS sand resources may be 
impacted by a proposed activity, BOEM may require potential bidders to 
undertake measures deemed economically, environmentally, and 
technically feasible to protect the resources to the maximum extent 
practicable, including minimizing, avoiding, and mitigating impact to 
these resources. Measures may include modification of proposed 
transmission corridor locations if warranted. Neither BOEM nor the 
Bureau of Safety and Environmental Enforcement will approve future 
requests for in-place decommissioning of submarine cables in sand 
resource areas unless BOEM has determined that the submarine cables do 
not unduly interfere with other uses of the OCS, specifically sand 
resource use.
    h. Potential Future Restrictions to Mitigate Possible Conflicts 
with Deep-Sea Corals and Biologically Sensitive Benthic Habit: 
Potential bidders are advised that in the Gulf of Maine Final WEA, BOEM 
has identified the presence of deep-sea corals and sponges, as well as 
hardbottom habitat areas suitable for sensitive deep-sea coral and 
sponge species. BOEM anticipates that any site assessment activities 
and site characterization activities within the Gulf of Maine 
authorized by a lease would be subject to the protections for live-
bottom features included in BOEM's programmatic consultation with the 
National Marine Fisheries Service under ESA section 7 (see Addendum C, 
section 5.2 in the Gulf of Maine leases).\6\ BOEM will conduct 
additional environmental review upon receipt of a lessee's COP and, as 
a condition of approval, may require avoidance measures to reduce 
potential impacts to sensitive benthic species and habitat within the 
Lease Area.
---------------------------------------------------------------------------

    \6\ Project Design Criteria 1: Avoid Live Bottom Features. Best 
Management Practice: All vessel anchoring and any seafloor-sampling 
activities (i.e., drilling or boring for geotechnical surveys) are 
restricted from seafloor areas with consolidated seabed features. 
All vessel anchoring and seafloor sampling must also occur at least 
150 m from any known locations of threatened or endangered coral 
species. All sensitive live bottom habitats (eelgrass, cold-water 
corals, etc.) should be avoided as practicable. All vessels in 
coastal waters will operate in a manner to minimize propeller wash 
and seafloor disturbance and transiting vessels should follow deep-
water routes (e.g., marked channels), as practicable, to reduce 
disturbance to sturgeon and sawfish habitat. https://www.boem.gov/renewable-energy/final-nlaa-osw-programmatic.
---------------------------------------------------------------------------

III. Participation in the Proposed Lease Sale

    a. Bidder Participation: Entities that have been notified by BOEM 
that their qualification is pending or that they are qualified to 
participate in any Gulf of Maine auction through their response to the 
RFI or Call, or by separate submission of qualification materials, are 
not required to take any additional

[[Page 35226]]

action to affirm their interest. Those entities are listed below:

------------------------------------------------------------------------
                                                                Company
                         Company name                             No.
------------------------------------------------------------------------
Avangrid Renewables, LLC.....................................      15019
Equinor Wind US LLC..........................................      15058
US Mainstream Renewable Power Inc............................      15089
Diamond Wind North America, LLC..............................      15113
Hexicon USA, LLC.............................................      15151
TotalEnergies SBE US, LLC....................................      15165
Pine Tree Offshore Wind, LLC.................................      15167
OW Gulf of Maine LLC.........................................      15175
Repsol Renewables North America, Inc.........................      15180
Maine Offshore Wind Development LLC..........................      15181
Corio USA Projectco LLC......................................      15182
------------------------------------------------------------------------

    All other entities wishing to participate in any Gulf of Maine 
auction must submit the required qualification materials to BOEM by the 
end of the 60-day comment period for this PSN.
    b. Affiliated Entities: On the Bidder's Financial Form (BFF), 
discussed below, eligible bidders must list any other eligible bidders 
with whom they are affiliated. For the purpose of identifying 
affiliated entities, a bidding entity is any individual, firm, 
corporation, association, partnership, consortium, or joint venture 
(when established as a separate entity) that is participating in the 
same auction. BOEM considers bidding entities to be affiliated when:
    i. They own or have common ownership of more than 50 percent of the 
voting securities, or instruments of ownership or other forms of 
ownership, of another bidding entity. Ownership of less than 10 percent 
of a bidding entity constitutes a presumption of non-control that BOEM 
may rebut.
    ii. They own or have common ownership of between 10 percent and up 
to including 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:
    (1) The extent to which there are common officers or directors.
    (2) With respect to the voting securities, or instruments of 
ownership or other forms of ownership: the percentage of ownership or 
common ownership, the relative percentage of ownership or common 
ownership compared to the percentage(s) of ownership by other bidding 
entities, if a bidding entity is the greatest single owner, or if there 
is an opposing voting bloc of greater ownership.
    (3) Shared ownership, operation, or day-to-day management of a 
lease, grant, or facility as those terms are defined in BOEM's 
regulations at 30 CFR 585.113.
    iii. They are both direct or indirect subsidiaries of the same 
parent company.
    iv. If, with respect to any lease(s) offered in this auction, they 
have entered into an agreement prior to the auction regarding the 
shared ownership, operation, or day-to-day management of such lease.
    v. Other evidence indicates the existence of power to exercise 
control, such as evidence that one bidding entity has power to exercise 
control over the other, or that multiple bidders collectively have the 
power to exercise control over another bidding entity or entities.
    Affiliated entities are not permitted to compete against each other 
in the auction. Where two or more affiliated entities have qualified to 
bid in the auction, the affiliated entities must decide prior to the 
auction which one (if any) will participate in the auction. If two or 
more affiliated entities attempt to participate in the auction, BOEM 
will disqualify those bidders from the auction.

IV. Questions for Stakeholders

    Stakeholders are encouraged to comment on any matters related to 
this proposed lease sale that are of interest or concern. BOEM has 
identified the following issues as particularly important, and we 
encourage commenters to address these issues specifically:
    a. Number, size, orientation, and location of the proposed Lease 
Areas: BOEM is seeking feedback on the proposed number, size, 
orientation, and location of the Lease Areas and welcomes comments on 
which Lease Areas, if any, should be prioritized for inclusion, or 
exclusion, from this lease sale. BOEM is also open to comment on areas 
of the WEA that were not included as Lease Areas.
    b. Considerations for delineation of the proposed Lease Areas: 
These delineation considerations may include comparable commercial 
viability and size; prevailing wind direction and minimizing wake 
effects; maximized energy generating potential; mooring system anchor 
footprints and extents; possible setbacks at Lease Area boundaries; 
distance to shore, port infrastructure and electrical grid 
interconnections; and fair return to the Federal Government pursuant to 
the OCS Lands Act through competition for commercially viable Lease 
Areas. Additional comments are welcome regarding other considerations 
for delineating Lease Areas.
    c. Existing uses and how they may be affected by the development of 
the proposed Lease Areas: BOEM asks commenters to submit technical and 
scientific data in support of their comments.
    d. Baseline Monitoring: BOEM is considering a lease stipulation 
that would require Lessees to conduct baseline data collection 
activities for endangered and threatened marine mammals and their 
habitats in support of developing their construction and operations 
plans. BOEM requests comments on the scope of this potential 
requirement, including (but not limited to) priority information on 
species and habitats, methods to collect that data, regional 
collaboration, data sharing, and data management.
    e. Corridors between Leases: BOEM welcomes comments on the 
potential effects of the proposed lease areas on existing vessel 
traffic, especially commercial maritime and fishing vessels. BOEM 
requests comments on the width, location, and orientation of corridors 
and how that would facilitate continuance of existing transit.
    f. Limits on the Number of Lease Areas per Bidder: BOEM is 
proposing to allow each qualified entity to bid for and ultimately win 
a maximum of two leases each, including a maximum of one Lease Area in 
the North Region as shown in Table 2. As proposed, a bidder can bid for 
and win a maximum of two South Region leases, or one North Region lease 
and one South Region lease--but cannot bid for or win both North Region 
leases. BOEM is seeking feedback on this proposal, including feedback 
on how different leasing scenarios (e.g., number of Lease Areas 
offered, size of Lease Areas, etc.) may influence the advisability of 
such a limitation.

         Table 2--Gulf of Maine Proposed Lease Areas and Regions
                           [Preferred option]
------------------------------------------------------------------------
           Lease Area ID                   Region              Acres
------------------------------------------------------------------------
OCS-A 0562........................  North...............         121,339

[[Page 35227]]

 
OCS-A 0563........................  North...............         132,369
OCS-A 0564........................  South...............         110,308
OCS-A 0565........................  South...............         115,290
OCS-A 0566........................  South...............         127,388
OCS-A 0567........................  South...............         123,118
OCS-A 0568........................  South...............         134,149
OCS-A 0569........................  South...............         106,038
------------------------------------------------------------------------

    Alternatively, BOEM could configure the leases into three regions, 
as shown in Table 3. BOEM would allow each qualified entity to bid for 
and ultimately win a maximum of two leases each, including a maximum of 
one Lease Area in each region. BOEM is seeking feedback on this 
alternative option.

         Table 3--Gulf of Maine Proposed Lease Areas and Regions
                          [Alternative option]
------------------------------------------------------------------------
           Lease area ID                   Region              Acres
------------------------------------------------------------------------
OCS-A 0562........................  North...............         121,339
OCS-A 0563........................  North...............         132,369
OCS-A 0564........................  South...............         110,308
OCS-A 0565........................  East................         115,290
OCS-A 0566........................  East................         127,388
OCS-A 0567........................  South...............         123,118
OCS-A 0568........................  South...............         134,149
OCS-A 0569........................  South...............         106,038
------------------------------------------------------------------------

V. Proposed Lease Sale Deadlines and Milestones

    This section describes the major deadlines and milestones in the 
lease sale process from publication of this PSN to execution of a 
lease.
    a. The PSN Comment Period:
    i. Submit Comments: The public is invited to submit comments during 
the 60-day period expiring on July 1, 2024. All comments received or 
postmarked during the comment period will be made available to the 
public and considered by BOEM prior to publication of the FSN.
    ii. Public Auction Seminar: BOEM will host a public seminar to 
discuss the lease sale process and the auction format. The time and 
place of the seminar will be announced by BOEM and published on the 
BOEM website at https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine. No registration or RSVP is required to attend.
    iii. Submit Qualification Materials: Prospective bidders who want 
to participate in the proposed lease sale must ensure that BOEM 
receives your qualification materials by July 1, 2024. This requirement 
includes all materials sufficient to establish a company's legal, 
technical, and financial qualifications pursuant to 30 CFR 
585.107-.108. To qualify to participate in the proposed lease sale, 
qualification materials must be developed in accordance with the 
guidelines available at https://www.boem.gov/Renewable-Energy-Qualification-Guidelines. BOEM will inform you if you are qualified to 
participate in the auction.
    iv. Confidential information. If you wish to protect the 
confidentiality of your comments or qualification materials, clearly 
mark the relevant sections and request that BOEM treat them as 
confidential. Please label privileged or confidential information with 
the caption ``Contains Confidential Information'' and consider 
submitting such information as a separate attachment. Treatment of 
confidential information is addressed in section XXI entitled 
``Protection of Privileged or Confidential Information.'' Information 
that is not labeled as privileged or confidential will be regarded by 
BOEM as suitable for public release.
    b. End of PSN Comment Period to FSN Publication:
    i. Review Comments: BOEM will review all comments submitted in 
response to the PSN during the comment period.
    ii. Finalize Qualifications Reviews: Prior to the publication of 
the FSN, BOEM will complete review of bidder qualification materials 
submitted during the PSN comment period. The final list of eligible 
bidders will be published in the FSN.
    iii. Prepare the FSN: BOEM will prepare the FSN by updating or 
modifying information contained in the PSN where necessary.
    iv. Publish FSN: BOEM will publish the FSN in the Federal Register 
at least 30 days before the date of the sale.
    c. FSN Waiting Period: During the period between FSN publication 
and the lease auction, qualified bidders would be required to take 
several steps to remain eligible to participate in the auction.
    i. Bidder's Financial Form: Each bidder must submit a BFF to BOEM 
to participate in the auction. The BFF must include the bidder's 
Conceptual Strategy for each non-monetary bidding credit for which that 
bidder wishes to be considered. If a bidder seeks to qualify for the 
same bidding credit in more than one region, the bidder must submit one 
bidding credit Conceptual Strategy. If, for a given bidding credit, 
there are any differences in the strategy for each region, the bidder 
must explicitly identify them in the Conceptual Strategy. BOEM must 
receive each bidder's BFF no later than the date listed in the FSN. 
BOEM may consider extensions to this deadline only if BOEM determines 
that the failure to timely submit a BFF was caused by events beyond the 
bidder's control. The proposed BFF can be downloaded at: https://
www.boem.gov/renewable-

[[Page 35228]]

energy/state-activities/maine/gulf-maine.
    (1) Once BOEM has processed a bidder's BFF, the bidder will be 
allowed to log into https://www.pay.gov and submit a bid deposit. For 
purposes of this auction, BOEM will not consider BFFs submitted by 
bidders for previous lease sales. An original signed BFF may be mailed 
to BOEM's Office of Renewable Energy Programs for certification. A 
signed copy of the form may be submitted in PDF format to 
boem.gov">renewableenergy@boem.gov. A faxed copy will not be accepted. BFF 
submissions must be accompanied by a transmittal letter on company 
letterhead.
    (2) The BFF must be executed by an authorized representative listed 
on the bidder's legal qualifications in the BFF, in accordance with 18 
U.S.C. 1001 (fraud and false statements).
    (3) Additional information regarding the BFF may be found below in 
section IX entitled ``Bidder's Financial Form.''
    ii. Bid Deposit: Each qualified bidder must submit a bid deposit of 
$2,000,000 for one Lease Area. If the FSN allows bidders to bid for and 
potentially win more than one Lease Area, each qualified bidder must 
submit a bid deposit of $2,000,000 per Lease Area sought. For example, 
if a qualified bidder wants to bid for and seek to win two Lease Areas, 
they will need to submit a bid deposit of $4,000,000. Further 
information about bid deposits can be found below in section X ``Bid 
Deposit.''
    d. Notification of Eligibility for Non-Monetary Credits: BOEM will 
notify each bidder of their eligibility for bidding credits prior to 
the Mock Auction.
    e. Mock Auction: BOEM will hold a Mock Auction that is open only to 
qualified bidders who have met the requirements and deadlines for 
auction participation, including submission of the bid deposit. The 
Mock Auction is intended to give bidders an opportunity to clarify 
auction rules, test the functionality of the auction software, and 
identify any potential issues that may arise during the auction. Final 
details of the Mock Auction will be provided in the FSN.
    f. The Auction: BOEM, through its contractor, will hold an auction 
as described in the FSN. The auction will take place no sooner than 30 
days following the publication of the FSN in the Federal Register. The 
estimated timeframes described in this PSN assume the auction will take 
place approximately 45 days after the publication of the FSN. Final 
dates will be included in the FSN. BOEM will announce the provisional 
winners of the lease sale after the auction ends.
    g. From the Auction to Lease Execution:
    i. Refund Non-Winners: Once the provisional winners have been 
announced, BOEM will provide the non-winners with a written explanation 
of why they did not win and will return their bid deposits.
    ii. Department of Justice (DOJ) Review: DOJ will have up to 30 days 
to conduct an antitrust review of the auction, pursuant to 43 U.S.C. 
1337(c).
    iii. Delivery of the Lease: BOEM will send three lease copies to 
each provisional winner, with instructions on how to execute the lease. 
Once the lease has been fully executed, a provisional winner becomes an 
auction winner. The first year's rent is due 45 days after the auction 
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 bids minus 
applicable bid deposit and any applicable non-monetary bidding 
credits), and sign and return the three executed lease copies. The 
winners may request extensions and BOEM may grant such extensions if 
BOEM determines the delay was caused by events beyond the requesting 
winner's control, pursuant to 30 CFR 585.224(e).
    v. Execution of Lease: Once BOEM has received the signed lease 
copies and verified that all other required materials have been 
received, BOEM will make a final determination regarding its issuance 
of the leases and will execute the leases, if appropriate.

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

    Along with this PSN, 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 
may be found on BOEM's website at: https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine. Each lease would include the 
following attachments:
    a. Addendum A (``Description of Leased Area and Lease 
Activities'');
    b. Addendum B (``Lease Term and Financial Schedule'');
    c. Addendum C (``Lease-Specific Terms, Conditions, and 
Stipulations''); and
    d. Addendum D (``Project Easement'').
    Addenda ``A,'' ``B,'' and ``C'' provide detailed descriptions of 
proposed lease terms and conditions. Addendum ``D'' will be completed 
at the time of COP approval or approval with modifications. After 
considering comments on the PSN and the proposed lease, BOEM will 
publish final lease terms and conditions in the FSN.

VIII. Lease Financial Terms and Conditions

    This section provides an overview of the required annual payments 
and financial assurances under the lease. Please see the proposed lease 
for more detailed information, including any changes from past 
practices.
    a. Rent: Pursuant to 30 CFR 585.224(b) and 585.503, the first 
year's rent payment of $3 per acre is due within 45 days after the 
lessee receives the unexecuted lease copies from BOEM. Lease area 
acreage is delineated in Addendum A of the lease and, if applicable, 
includes portions of a lease that do not allow surface occupancy. 
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), as described in the lease. For example, for the 
121,339 acres of Lease OCS-A 0562, the rent payment would be $364,017 
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 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.
    A lease issued under this part confers on the Lessee the right to 
one or more project easements, without further competition, for the 
purpose of installing gathering, transmission, and distribution cables, 
pipelines, and appurtenances on the OCS as necessary for the full 
enjoyment of the lease. A Lessee must apply for the project easement as 
part of the COP or SAP, as

[[Page 35229]]

provided under subpart F of 30 CFR part 585.
    The lessee also must pay rent for any project easement associated 
with the lease. Rent commences on the date that BOEM approves the COP 
that describes the project easement (or any modification of such COP 
that affects the easement acreage), as outlined in 30 CFR 585.507. If 
the COP revision results in increased easement acreage, additional rent 
would be due at the time the COP revision is approved. Annual rent for 
a project easement is the greater of $5 per acre per year or $450 per 
year.
    b. Operating Fee: For purposes of calculating the initial annual 
operating fee 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 must be paid within 90 
days of the commencement of commercial operations. Thereafter, 
subsequent annual operating fees must be paid on or before the Lease 
Anniversary.
    The subsequent annual operating fees will be calculated by 
multiplying the operating fee rate by the imputed wholesale market 
value of the projected annual electric power production. For the 
purposes of this calculation, the imputed market value will be the 
product of the project's annual nameplate capacity, the total number of 
hours in a year (8,760), the capacity factor, and the annual average 
price of electricity derived from a regional wholesale power price 
index. For example, the annual operating fee for a 976-megawatt (MW) 
wind facility operating at a 40 percent capacity (i.e., capacity factor 
of 0.4) with a regional wholesale power price of $40 per megawatt hour 
(MWh) and an operating fee rate of 0.02 would be calculated as follows:
[GRAPHIC] [TIFF OMITTED] TN01MY24.047

    i. Operating Fee Rate: The operating fee rate is the share of the 
imputed wholesale market value of the projected annual electric power 
production due to the Office of Natural Resources Revenue (ONRR) as an 
annual operating fee. For the Lease Areas, BOEM proposes to set the fee 
rate at 0.02 (2 percent) for the entire life of commercial operations.
    ii. Nameplate Capacity: Nameplate capacity is the maximum rated 
electric output, expressed in MW, which the turbines of the wind 
facility under commercial operations can produce at their rated wind 
speed as designated by the turbine's manufacturer.
    iii. Capacity Factor: BOEM proposes to set the capacity factor at 
0.4 (i.e., 40 percent) for the year in which the commercial operations 
begin 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 ISO New England 
H.INTERNAL_HUB. 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 
unexecuted lease copies and pursuant to 30 CFR 585.515-585.516, the 
provisional winners would be required to provide an initial lease-
specific bond or other BOEM-approved financial assurance instrument in 
the amount of $100,000. The provisional winners may meet financial 
assurance requirements by posting a surety bond or other financial 
assurance instrument or alternative as detailed in 30 CFR 585.526-
585.529. BOEM encourages the provisional winners to discuss financial 
assurance requirements with BOEM as soon as possible after the auction 
has concluded.
    BOEM will base the amount of financial assurance (for all SAP, COP, 
and decommissioning activities) 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/maine/gulf-maine.

IX. Bidder's Financial Form

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

X. Bid Deposit

    Each qualified bidder must submit a bid deposit no later than the 
date listed in the FSN. Typically, the deadline is approximately 30 
days after the publication of the FSN. BOEM may consider requests for 
extensions of this deadline only if BOEM determines that the failure to 
timely submit the bid deposit was caused by events beyond the bidder's 
control.
    Following the auction, bid deposits will be applied against the 
winning bid and other obligations owed to BOEM. If a bid deposit 
exceeds that bidder's total financial obligation, BOEM will refund the 
balance of the bid deposit to the bidder. BOEM will refund bid deposits 
to the unsuccessful bidders once BOEM has announced the provisional 
winners.

[[Page 35230]]

    If BOEM offers a lease to a provisional winner and that bidder 
fails to timely return the signed lease, establish financial assurance, 
or pay the balance of its bid, BOEM will retain the bidder's $2,000,000 
bid deposit for the Lease Area. In such a circumstance, BOEM reserves 
the right to offer a lease for that Lease Area to the next highest 
bidder as determined by BOEM.

XI. Minimum Bid

    The minimum bid is the lowest 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 for this lease sale. Under BOEM's proposal, the bidding 
system for this lease sale will be a combination of monetary and non-
monetary factors. The bid made by a particular bidder in each round 
will represent the sum of the monetary factor (cash bid) and the value 
of any non-monetary factors in the form of bidding credits. BOEM 
proposes to start the auction using the minimum bid price for the Lease 
Areas and to increase these prices incrementally until no more than one 
bidder remains bidding on each Lease Area in the auction. For this 
sale, BOEM is calculating bidding credits as a percentage of the whole 
bid, which is a change from the method used in sales held prior to 
2024, where bidding credits were calculated as a percentage of the cash 
portion of the bid. The intended purpose of this change is to simplify 
the bidding credit calculation. BOEM is proposing to grant bidding 
credits to bidders that commit to one or both of the following:
    i. supporting workforce training programs for the floating offshore 
wind industry or supporting the development of a domestic supply chain 
for the floating offshore wind industry, or a combination of both; or
    ii. establishing and contributing to a fisheries compensatory 
mitigation fund or contributing to an existing fund to mitigate 
potential negative impacts to commercial and for-hire recreational 
fisheries caused by offshore wind development in the Gulf of Maine.
    These bidding credits are intended to:
    i. enhance, through training, the floating offshore wind workforce 
and/or enhance the establishment of a domestic supply chain for 
floating offshore wind manufacturing, assembly, or services, both of 
which will contribute to the expeditious and orderly development of 
offshore wind resources on the OCS;
    ii. support the expeditious and orderly development of OCS 
resources by mitigating potential direct impacts from proposed projects 
and encouraging the investment in infrastructure germane to the 
floating offshore wind industry; and
    iii. minimize potential economic effects on commercial fisheries 
impacted by potential floating offshore wind development, as 
cooperation with commercial fisheries impacted by OCS operations will 
enable development of the Lease Area to advance.
    If a bidder qualifies to bid for a Lease Area in more than one 
region and seeks to qualify for a bidding credit, the bidder must 
submit one bidding credit Conceptual Strategy, which must explicitly 
identify any differences in the strategy for each region.
    b. Changes to Auction Rules: BOEM will be employing new auction 
software for sales held in 2024. The auction format remains an 
ascending clock auction with multiple-factor bidding. The new software 
makes five primary changes have been made to the ascending clock 
auction rules in the new software, described below.
    i. If a bidder decides to bid on a different Lease Area in a given 
round of the auction, it may submit a bid to reduce demand for the 
Lease Area it bid on in the previous round and, simultaneously, submit 
a bid to increase demand for another Lease Area. This allows a bidder 
the option to switch to another Lease Area if the price of the first 
Lease Area exceeds the specified bid price.
    ii. Provisional winners will no longer be determined using a two-
step process. The auction rules are implemented in a way such that, 
when the auction concludes, the bidder who remains on a Lease Area 
after the final round becomes its provisional winner. There will be no 
additional processing step.
    iii. The auctions will use a `second price' rule. A given Lease 
Area will be won by the bidder that submitted the highest bid amount 
for the Lease Area, but the winning bidder will pay the highest bid 
amount at which there was competition (i.e., the `second price').
    iv. Each bidder's bidding credit will be expressed directly as a 
percentage of the final price for the lease.
    v. For sales in which bidders are allowed to bid for and 
potentially acquire two or more Lease Areas, any bid for two or more 
Lease Areas will be treated as independent bids for those Lease Areas, 
rather than as a package bid.
    All five of these changes are applicable to the ATLW-11 sale, as 
proposed in this PSN. All potential bidders should review the complete 
Auction Procedures for Offshore Wind Lease Sales (Version 1) located 
at: https://www.boem.gov/renewable-energy/lease-and-grant-information.
    c. The Auction: Using an online bidding system to host the auction, 
BOEM will start the bidding for the Lease Areas as described below.

                          Table 4--Gulf of Maine Proposed Lease Areas and Minimum Bids
----------------------------------------------------------------------------------------------------------------
                 Lease area ID                               Region                    Acres        Minimum bid
----------------------------------------------------------------------------------------------------------------
OCS-A 0562....................................  North...........................         121,339       6,066,950
OCS-A 0563....................................  North...........................         132,369       6,618,450
OCS-A 0564....................................  South...........................         110,308       5,515,400
OCS-A 0565....................................  South...........................         115,290       5,764,500
OCS-A 0566....................................  South...........................         127,388       6,369,400
OCS-A 0567....................................  South...........................         123,118       6,155,900
OCS-A 0568....................................  South...........................         134,149       6,707,450
OCS-A 0569....................................  South...........................         106,038       5,301,900
----------------------------------------------------------------------------------------------------------------

    BOEM is proposing to allow each qualified entity to bid for and 
ultimately win a maximum of two leases each, including a maximum of one 
Lease Area in the North Region as shown in Table 4. As proposed, a 
bidder can bid for and win a maximum of two South Region leases, or one 
North Region lease and one South Region lease--but cannot bid for or 
win both North Region leases. BOEM is also soliciting comments on an

[[Page 35231]]

alternative approach with three regions as discussed in section IV.f.
    The auction will be conducted in a series of rounds. Before each 
round, the auction system will announce the prices for each Lease Area 
offered in the auction. In Round 1, there is a single price for each 
Lease Area equal to the minimum bid price (also known as the `opening 
price' or `clock price of Round 1'). Each bidder can bid, at the 
opening prices, for as many Lease Areas as allowed by the FSN and the 
bidder's bid deposit. After Round 1, the bidder's processed demand is 
one for each Lease Area for which the bidder bid in Round 1.\7\ The 
bidder's eligibility for Round 2 equals the number of Lease Areas for 
which the bidder bid in Round 1.
---------------------------------------------------------------------------

    \7\ Bidders specify their demand for a lease area with either a 
0 or 1 in the auction system. A demand of 1 indicates the lease area 
that they are bidding on. Processed demand is the demand, either 0 
or 1, of a bidder for a lease area following the processing of the 
bids for the round.
---------------------------------------------------------------------------

    Starting in Round 2, each Lease Area is assigned a range of prices 
for the round. The start-of-round price is the lowest price in the 
range, and the clock price is the highest price in the range. A bidder 
still eligible to bid after the previous round can either (i) continue 
bidding at the new round's clock price(s) for the Lease Area(s) for 
which the bidder's processed demand is one or (ii) submit a bid(s) to 
reduce demand for one (or more) Lease Area(s) at any price(s) in the 
range(s) for that round. A bid to reduce demand at some price indicates 
that the bidder is not willing to acquire that Lease Area at a price 
exceeding the specified bid price. A bidder that bids to reduce demand 
for one or two Lease Areas could bid to increase demand up to the same 
number of other Lease Areas in the same round.
    If an eligible bidder does not place a bid during the round for a 
Lease Area for which the bidder's processed demand is one, the auction 
system will consider this a request to reduce demand for that Lease 
Area at the round's start-of-round price. The bidder can nonetheless 
win that Lease Area if it is the last remaining bidder for that Lease 
Area.
    After each round, the auction system processes the bids and 
determines each bidder's processed demand for each Lease Area and the 
posted prices for the Lease Areas. The bidder's eligibility for the 
next round will equal the number of Lease Areas for which the bidder 
had processed demand of one. If, after any round, a bidder's processed 
demand is zero for every Lease Area, the bidder's eligibility drops to 
zero and the bidder can no longer participate in the auction. The 
posted price is the price determined for each Lease Area after 
processing of all bids for a round. If only one bidder remains on a 
Lease Area, the posted price reflects the ``second price'' (i.e., the 
highest price at which there was competition for the Lease Area).\8\ 
The posted price for a Lease Area after each round becomes the start-
of-round price for that Lease Area in the next round.
---------------------------------------------------------------------------

    \8\ The Auction Procedures for Offshore Wind Lease Sales 
provides details on how bids are prioritized and processed.
---------------------------------------------------------------------------

    If, after the bids for the round have been processed, there is no 
Lease Area with excess demand (i.e., no lease areas have more than one 
bidder), the auction will end. When this occurs, each bidder with 
processed demand of one for a Lease Area will become the provisional 
winner for that Lease Area. Otherwise, the auction will continue with a 
new round in which the start-of-round price for each Lease Area equals 
the posted price of the previous round.
    The increment by which the clock price exceeds the start-of-round 
price will be determined based on several factors including, but not 
necessarily limited to, the expected time needed to conduct the auction 
and the number of rounds that have already occurred. BOEM reserves the 
right to increase or decrease the increment as it deems appropriate.
    The provisional winner of each Lease Area will pay the final posted 
price (less any applicable bidding credit) or risk forfeiting its bid 
deposit. A provisional winner will be disqualified if it is 
subsequently found to have violated auction rules or BOEM regulations, 
or otherwise engaged in conduct detrimental to the integrity of the 
competitive auction. If a bidder submits a bid that BOEM determines to 
be a provisionally winning bid, the bidder must sign the applicable 
lease documents, post financial assurance, and submit the outstanding 
balance of its winning bid (i.e., winning bid minus the applicable bid 
deposit and any applicable credits) within 10-business days of 
receiving the lease copies, pursuant to 30 CFR 585.224. BOEM reserves 
the right to not issue the lease to the provisionally winning bidder if 
that bidder fails to: timely execute three copies of the lease and 
return them to BOEM, timely post adequate financial assurance, timely 
pay the balance of its winning bid, or otherwise comply with applicable 
regulations or the terms of the FSN. In any of these cases, the bidder 
will forfeit its bid deposit and BOEM reserves the right to offer a 
lease to the next highest eligible bidder as determined by BOEM.
    BOEM will publish the names of the provisional winners of the Lease 
Areas and the associated prices shortly after the conclusion of the 
sale. Full bid results, including round-by-round results of the entire 
sale, will be published on BOEM's website after a review of the results 
and announcement of the provisional winners.
    Additional information regarding the auction format:
    i. Authorized Individuals and Bidder Authentication: An entity that 
is eligible to participate in the auction will identify on its BFF up 
to three individuals who will be authorized to bid on behalf of the 
company, including their names, business telephone numbers, and email 
addresses. All individuals will log into the auction system using 
login.gov. Prior to the auction, each individual listed on the BFF form 
must obtain a Fast Identity Online (FIDO)-compliant security key, and 
must register this security key on login.gov using the same email 
address that was listed in the BFF. The login.gov registration, 
together with the FIDO-compliant security key, will enable the 
individual to log into the auction system. BOEM will provide 
information on this process on its website.
    After BOEM has processed the bid deposits, the auction contractor 
will send an email to the authorized individuals, inviting them to 
practice logging into the auction system on a specific day in advance 
of the mock auction. The login.gov login process, along with the 
authentication for the auction helpdesk, will also be tested during the 
mock auction.
    If an eligible bidder fails to submit a bid deposit or does not 
participate in the first round of the auction, BOEM will deactivate 
that bidder's login information.
    ii. Timing of Auction: The FSN will provide specific information 
regarding when bidders will be able to log into the auction system and 
when the auction will start.
    iii. Messaging Service: BOEM and the auction contractors will use 
the auction system's 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 the auction, it will use the messaging service to 
notify bidders that a revision has been made and will direct bidders to 
the relevant page. BOEM will also use the messaging service for other 
updates during the auction.
    iv. Bidding Rounds: Bidders are allowed to place bids or to change 
their bids at any time during the round. At

[[Page 35232]]

the top of the bidding page, a countdown clock shows how much time 
remains in each round. Bidders will have until the end of the round to 
place bids. Bidders should do so according to the procedures described 
in the FSN and the Auction Procedures for Offshore Wind Lease Sales. 
Information about the round results will be made available only after 
the round has closed, so there is no strategic advantage to placing 
bids early or late in the round.
    The Auction Procedures for Offshore Wind Lease Sales elaborate on 
the auction process described in this PSN. In the event of any 
inconsistency among the Auction Procedures for Offshore Wind Lease 
Sales, the Bidder Manual, and the FSN, the FSN is controlling.\9\
---------------------------------------------------------------------------

    \9\ The Bidder Manual is provided to the auction participants in 
advance of the auction.
---------------------------------------------------------------------------

    v. Alternate Bidding Procedures: Redundancy is the most effective 
way to mitigate technical and human issues during an auction. BOEM 
strongly recommends that bidders consider authorizing more than one 
individual to bid in the auction and confirming during the Mock Auction 
that each authorized individual is able to access the auction system. A 
mobile hotspot or other form of wireless access is helpful in case a 
company's main internet connection should fail. As a last resort, an 
authorized individual facing technical issues may request to submit its 
bid by telephone. To be authorized to place a telephone bid, an 
authorized individual must call the help desk number listed in the 
auction manual before the end of the round. BOEM will authenticate the 
caller's identity. The caller must also explain the reasons why a 
telephone bid is necessary. BOEM may, in its sole discretion, permit or 
refuse to accept a request for the placement of a bid using this 
alternate telephonic bidding procedure. The auction help desk requires 
codes from the Google Authenticator mobile application as part of its 
procedure for identifying individuals who call for assistance. Prior to 
the auction, all individuals listed on the BFF should download the 
Google Authenticator mobile application \10\ onto their smartphone or 
tablet.\11\ The first time the individual logs into the auction system, 
the system will provide a QR token to be read into the Google 
Authenticator application. This token is unique to the individual and 
enables the Google Authenticator application to generate time-sensitive 
codes that will be recognized by the auction system. When an individual 
calls the auction help desk, the current code from the application must 
be provided to the help desk representative as part of the user 
authentication process. BOEM will provide information on this process 
on its website.
---------------------------------------------------------------------------

    \10\ The Google Authenticator app must be installed from either 
the Apple App Store or the Google Play Store.
    \11\ Installing the Google Authenticator app is required only if 
the app has not already been installed on the smartphone or tablet.
---------------------------------------------------------------------------

    d. 12.5 Percent Bidding Credit for Workforce Training or Supply 
Chain Development or a Combination of Both: This proposed bidding 
credit will allow a bidder to receive a credit of 12.5 percent in 
exchange for a commitment to make a qualifying monetary contribution 
(``Contribution''), in the same amount as the bidding credit received, 
to programs or initiatives that support workforce training programs for 
the U.S. floating offshore wind industry or development of a U.S. 
domestic supply chain for the floating offshore wind industry, or both, 
as described in the BFF Addendum and the lease. To qualify for this 
credit, the bidder must commit to the bidding credit requirements on 
the BFF and submit a Conceptual Strategy as described in the BFF 
Addendum.
    i. As proposed, the Contribution to workforce training must result 
in a better trained and/or larger domestic floating offshore wind 
workforce that will provide for more efficient operations via 
increasing the supply of fully trained personnel. Training of existing 
lessee employees, lessee contractors, or employees of affiliated 
entities will not qualify as an appropriate contribution toward 
fulfilling this bidding credit commitment.
    ii. The Contribution to domestic supply chain development must 
result in overall benefits to the U.S. floating offshore wind supply 
chain available to all potential purchasers of floating offshore wind 
services, components, or subassemblies, not solely the lessee's 
project; and either: (i) the demonstrable development of new domestic 
capacity (including vessels) or the demonstrable buildout of existing 
capacity; or (ii) an improved floating offshore wind domestic supply 
chain by reducing the upfront capital or certification cost for 
manufacturing floating offshore wind components, including the building 
of facilities, the purchasing of capital equipment, and the certifying 
of existing manufacturing facilities.
    iii. Contributions cannot be used to satisfy private cost shares 
for any Federal tax or other incentive programs where cost sharing is a 
requirement. No portion of the Contribution may be used to meet the 
requirements of any other bidding credits for which the lessee 
qualifies.
    iv. Bidders interested in obtaining a bidding credit could choose 
to contribute to workforce training programs, domestic supply chain 
initiatives, or a combination of both. The Conceptual Strategy must 
describe verifiable actions that the lessee will take that will allow 
BOEM to confirm compliance once the lessee has submitted documentation 
that shows it has satisfied the bidding credit commitment. The 
Contribution must be tendered in full, and the lessee must provide 
documentation evidencing it has made the Contribution and complied with 
applicable requirements, no later than the date the lessee submits its 
first Facility Design Report (FDR).
    v. As proposed, Contributions to workforce training must 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 
floating 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 floating offshore wind 
components, subcomponents, or subassemblies (examples of areas 
involving these skills and techniques include welding; wind energy 
technology; hydraulic maintenance; braking systems; mechanical systems, 
including blade inspection and maintenance; or computers and 
programmable logic control systems); (iv) Tribal floating offshore wind 
workforce development programs or training for employees of an Indian 
Economic Enterprise \12\ in skills necessary in the floating offshore 
wind industry; or (v) Training in any other job skills that the lessee 
can demonstrate are necessary for the planning, design, construction, 
operation, maintenance, or decommissioning of floating offshore wind 
energy projects in the United States.
---------------------------------------------------------------------------

    \12\ https://www.bia.gov/sites/default/files/dup/assets/as-ia/ieed/Primer%20on%20Buy%20Indian%20Act%20508%20Compliant%202.6.18(Reload).p
df.
---------------------------------------------------------------------------

    vi. As proposed, Contributions to domestic supply chain development 
must promote and support one or more of the following: (i) Development 
of a

[[Page 35233]]

domestic supply chain for the floating offshore wind industry, 
including manufacturing of components and sub-assemblies and the 
expansion of related services; (ii) Domestic Tier 2 and Tier 3 floating 
offshore wind component suppliers and domestic Tier-1 supply chain 
efforts, including quay-side fabrication; \13\ (iii) Technical 
assistance grants to help U.S. manufacturers re-tool or certify (e.g., 
ISO-9001) for floating offshore wind manufacturing; (iv) Development of 
Jones Act-compliant vessels for the construction, servicing, and/or 
decommissioning of wind energy projects in the United States; (v) 
Purchase and installation of lift cranes or other equipment capable of 
lifting or moving foundations, towers, and nacelles quayside, or lift 
cranes on vessels with these capabilities; (vi) Port infrastructure 
directly related to floating offshore wind component manufacturing or 
assembly of major floating offshore wind facility components; (vii) 
Establishing a new or existing bonding support reserve or revolving 
fund available to all businesses providing goods and services to 
offshore wind energy companies, including disadvantaged businesses and/
or Indian Economic Enterprises; or (viii) Other supply chain 
development efforts that the lessee can demonstrate advance the 
manufacturing of floating offshore wind components or subassemblies or 
the provision of floating offshore wind services in the United States.
---------------------------------------------------------------------------

    \13\ Tier-1 denotes the primary floating offshore wind 
components such as the blades, nacelles, towers, foundations, and 
cables. Tier 2 subassemblies are the systems that have a specific 
function for a Tier 1 component. Tier 3 subcomponents are commonly 
available items that are combined into Tier 2 subassemblies, such as 
motors, bolts, and gears.
---------------------------------------------------------------------------

    vii. Documentation: If a lease is issued pursuant to a winning bid 
that includes a bidding credit for workforce training or supply chain 
development, the lessee must provide documentation showing that the 
lessee has met the financial commitment before the lessee submits the 
first FDR for the lease. The documentation must allow BOEM to 
objectively verify the amount of the Contribution and the 
beneficiary(ies) of the Contribution.
    At a minimum, the documentation must include: all written 
agreements between the lessee and beneficiary(ies) of the Contribution, 
which must detail the amount of the Contribution(s) and how it will be 
used by the beneficiaries of the Contribution(s) to satisfy the goals 
of the bidding credit for which the Contribution was made; all receipts 
documenting the amount, date, financial institution, and the account 
and owner of the account to which the Contribution was made; and sworn 
statements by the entity that made the Contribution and the 
beneficiary(ies) of the Contribution attesting that all information 
provided in the above documentation is true and accurate. The 
documentation would need to describe how the funded initiative or 
program has advanced, or is expected to advance, U.S. floating offshore 
wind workforce training or supply chain development. The documentation 
must also provide qualitative and/or quantitative information that 
includes the estimated number of trainees or jobs supported, or the 
estimated leveraged supply chain investment resulting or expected to 
result from the Contribution. The documentation must contain any 
information called for in the Conceptual Strategy that the lessee 
submitted with its BFF and to allow BOEM to objectively verify (i) the 
amount of the Contribution and the beneficiary(ies) of the 
Contribution, and (ii) compliance with the bidding credit criteria 
provided in Addendum ``C'' of the lease. If the lessee's implementation 
of its Conceptual Strategy changes due to market needs or other 
factors, the lessee must explain the changed approach. BOEM reserves 
all rights to determine that bidding credit criteria have not been 
satisfied if changes from the lessee's Conceptual Strategy result in 
the lessee not meeting the criteria for the bidding credit described in 
Addendum ``C'' of the lease.
    viii. Enforcement: The commitment for the bidding credit must be 
made in the BFF and would be included in a lease addendum that would 
bind the lessee and all future assignees of the lease. If BOEM were to 
determine that a lessee or assignee had failed to satisfy the 
requirements of the bidding credit, or if a lessee were to relinquish 
or otherwise fail to develop the lease by the tenth anniversary date of 
lease issuance, the amount corresponding to the bidding credit awarded 
would be immediately due and payable to ONRR with interest from the 
lease Effective Date. The interest rate would be the underpayment 
interest rate identified by ONRR. The lessee would not be required to 
pay said amount if the lessee satisfied its bidding credit requirements 
but failed to develop the lease by the tenth Lease Anniversary. BOEM 
could, at its sole discretion, extend the documentation deadline beyond 
the first FDR submission or extend the lease development deadline 
beyond the 10-year timeframe.
    e. 12.5 percent Bidding Credit for Fisheries Compensatory 
Mitigation Fund: The second bidding credit proposed would allow a 
bidder to receive a credit of 12.5 percent of its bid in exchange for a 
commitment to establish and contribute to a Fisheries Compensatory 
Mitigation Fund, or to contribute to a similar existing fund, to 
compensate for potential negative impacts to commercial and for-hire 
recreational fisheries. The term ``commercial fisheries'' refers to 
commercial and processing businesses engaged in the act of catching and 
marketing fish and shellfish for sale from the Gulf of Maine. The term 
``for-hire recreational fisheries'' refers to charter and headboat 
fishing operations involving vessels-for-hire engaged in recreational 
fishing in the Gulf of Maine that are hired for a charter fee by an 
individual or group of individuals for the exclusive use of that 
individual or group of individuals. Lessees are encouraged to 
contribute to a regional fund, such as the initiative by eleven East 
Coast states to establish a regional fund that would provide financial 
compensation for economic loss from offshore wind development off the 
Atlantic Coast. At a minimum, the compensation must address the 
following:
    (1) Gear loss or damage; and
    (2) Lost fishing income in Gulf of Maine wind energy Lease Areas.
    The fisheries compensatory mitigation fund would assist commercial 
and for-hire recreational fisheries directly impacted by income or gear 
losses due to offshore wind activities on offshore wind leases or 
easements and is intended to address the impacts identified in BOEM's 
environmental and project reviews. The compensatory mitigation must 
cover impacts that result directly from the preconstruction, 
construction, operations and decommissioning of an offshore wind 
project being developed in the Gulf of Maine wind energy leases or 
easements. The fund must be established and the Contribution made 
before the lessee submits the lease's first FDR or before the fifth 
Lease Anniversary, whichever is sooner. To qualify for this credit, the 
bidder must commit to the bidding credit requirements on the BFF and 
submit a Conceptual Strategy as described in the BFF Addendum.
    Bidders applying for the fisheries compensatory mitigation fund 
bidding credit must submit their Conceptual Strategy along with their 
BFF, further described below and in the BFF Addendum. The Conceptual 
Strategy would describe the actions that the lessee intends to take 
that would allow BOEM to verify compliance when the lessee seeks to 
demonstrate satisfaction

[[Page 35234]]

of the requirements for the bidding credit. The lessee would be 
required to provide documentation showing that the lessee has met the 
commitment and complied with the applicable bidding credit requirements 
before the lessee submits the lease's first FDR or before the fifth 
Lease Anniversary, whichever is sooner.
    As proposed, gear loss, damage, and fishing income loss claims 
should be prioritized at each phase of offshore wind project 
development, including impacts from surveys conducted before the 
establishment of the fund. BOEM encourages lessees to coordinate with 
other lessees to establish or contribute to a regional fund. A regional 
fund should be flexible enough to incorporate future contributions from 
future lease auctions and actuarially sound enough to recognize the 
multi-decade life of offshore wind projects in the Gulf of Maine. 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:
    i. Promote participation of fishers and fishing communities in the 
project development process or other programs that better enable the 
fishing and offshore wind industries to co-exist;
    ii. Offset the cost of gear upgrades and transitions for operating 
within a wind facility.
    Any fund established or selected by the lessee to meet this bidding 
credit requirement must include a process for evaluating the actuarial 
status of funds at least every 5 years and publicly reporting 
information on fund disbursement and administrative costs at least 
annually.
    The Fisheries Compensatory Mitigation Fund must be independently 
managed by a third party and designed with fiduciary governance and 
strong internal controls while minimizing administrative expenses. The 
Contribution may be used for fund startup costs, but the Fund should 
minimize costs by leveraging existing processes, procedures, and 
information from the BOEM Draft Fisheries Mitigation Guidance, the 
Eleven Atlantic States' Fisheries Mitigation Project, or other sources.
    i. Documentation: As proposed, if a lease is awarded pursuant to a 
winning bid that includes a Fisheries Compensatory Mitigation Fund 
Bidding Credit, the lessee must provide written documentation to BOEM 
that demonstrates that it completed the fund Contribution before it 
submits the lease's first FDR or before the fifth Lease Anniversary, 
whichever is sooner. The documentation must enable BOEM to objectively 
verify the Contribution has met all applicable requirements as outlined 
in Addendum ``C'' of the lease.
    ii. At a minimum, this documentation must include:
    (1) The procedures established to compensate for gear loss or 
damage resulting from all phases of the project development on the 
Lease Area (pre-construction, construction, operation, and 
decommissioning);
    (2) The Fisheries Compensatory Mitigation Fund charter, including 
the governance structure, audit and public reporting procedures, and 
standards for paying compensatory mitigation for impacts to fishers 
from development on wind energy Lease Areas in the Gulf of Maine;
    (3) All receipts documenting the amount, date, financial 
institution, and the account and owner of the account to which the 
Contribution was made; and
    (4) Sworn statements by the entity that made the Contribution, 
attesting to:
    i. The amount and date(s) of the Contribution;
    ii. That the Contribution is being (or will be) used in accordance 
with the bidding credit requirements in the lease; and
    iii. That all information provided is true and accurate.
    The documentation must contain any information specified in the 
Conceptual Strategy that was submitted with the BFF. If the lessee's 
implementation of its Conceptual Strategy changes due to market needs 
or other factors, the lessee must explain this change. BOEM reserves 
the right to determine that the bidding credit has not been satisfied 
if changes from the lessee's Conceptual Strategy result in the lessee 
not meeting the criteria for the bidding credit described in Addendum 
``C'' of the lease.
    iii. Enforcement: The commitment to the Fisheries Compensatory 
Mitigation Fund Bidding Credit will be made in the BFF. It will be 
included in Addendum ``C'' of the lease and will bind the lessee and 
all future assignees of the lease. If BOEM were to determine that a 
lessee or assignee had failed to satisfy the commitment at the time the 
first FDR is submitted, or by the fifth Lease Anniversary, whichever is 
sooner, the amount corresponding to the bidding credit awarded would be 
immediately due and payable to ONRR with interest from the lease 
effective date. The interest rate would be the underpayment interest 
rate identified by ONRR. The lessee would not be required to pay said 
amount if the lessee satisfied its bidding credit requirements by the 
time the first FDR is submitted, or the fifth Lease Anniversary, 
whichever is sooner. BOEM may, at its sole discretion, extend the 
documentation deadline beyond the first FDR or beyond the 5-year 
timeframe.

XIII. Rejection or Non-Acceptance of Bids

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

XIV. Anti-Competitive Review

    Bidding behavior in this sale is subject to Federal antitrust laws. 
Following the auction, but before the acceptance of bids and the 
issuance of the lease, BOEM must ``allow the Attorney General, in 
consultation with the Federal Trade Commission, thirty days to review 
the results of [the] lease sale.'' 43 U.S.C. 1337(c)(1). If a 
provisional winner is found to have engaged in anti-competitive 
behavior in connection with this lease sale, BOEM may reject its 
provisionally winning bid. Compliance with BOEM's auction procedures 
and regulations is not an absolute defense against violations of 
antitrust laws.
    Anti-competitive behavior determinations are fact specific. 
However, such behavior may manifest itself in several different ways, 
including, but not limited to:
    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 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;

[[Page 35235]]

    2. File financial assurance as required under 30 CFR 585.515-537, 
as applicable; and
    3. Pay by electronic funds transfer (EFT) the balance owed (the 
winning cash bid less the applicable bid deposit), if any. BOEM would 
require bidders to use EFT procedures (not https://www.pay.gov, the 
website bidders used to submit bid deposits) for payment of the 
balance, 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 has accepted the provisionally winning 
bidder's financial assurance pursuant to 30 CFR 585.515, and BOEM has 
processed the provisionally winning bidder's payment. BOEM may extend 
the 10-business-day deadline for signing a lease, filing the required 
financial assurance, and paying the balance owed if BOEM determines, in 
its sole discretion, that the provisionally winning bidder's inability 
to comply with the deadline was caused by events beyond the 
provisionally winning bidder's control pursuant to 30 CFR 585.224(e).
    If the provisional winner does not meet these requirements or 
otherwise fails to comply with applicable regulations or the terms of 
the FSN, BOEM reserves the right to not issue the lease to that bidder. 
In such a case, the provisional winner will forfeit its bid deposit. 
Also, in such a case, BOEM reserves the right to offer the lease to the 
next highest eligible bidder as determined by BOEM.
    Within 45 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 available on ONRR's website 
at: https://onrr.gov/paying/payment-options?tabs=rent-payments.

XVI. Non-Procurement Debarment and Suspension Regulations

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

XVII. Final Sale Notice

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

XVIII. Changes to Auction Details

    BOEM has the discretion to change any auction detail specified in 
the FSN, including the date and time, if events outside BOEM's control 
have been found to interfere with a fair and proper lease sale. Such 
events may include, but are not limited to, natural disasters (e.g., 
earthquakes, hurricanes, floods, and blizzards), wars, riots, act of 
terrorism, fire, strikes, civil disorder, Federal Government shutdowns, 
cyberattacks against relevant information systems, or other events of a 
similar nature. In case of such events, BOEM will notify all qualified 
bidders via email, phone, and BOEM's website at https://www.boem.gov/renewable-energy/state-activities/maine/gulf-maine. Bidders should call 
BOEM's Auction Manager at (703) 787-1121 if they have concerns.

XIX. Appeals

    Reconsideration of rejected bid procedures are provided for 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 of the Interior, and is not 
subject to appeals to the Office of Hearings and Appeals, but an 
unsuccessful bidder may apply for reconsideration by the Director under 
30 CFR 585.225 as follows:
    1. If BOEM rejects a bid, BOEM will provide the bidder a written 
statement of the reasons for rejection and will refund any money 
deposited with the bid, without interest.
    2. A bidder may ask the BOEM Director for reconsideration, in 
writing, within 15-business days of bid rejection. The Director will 
send the bidder a written response either affirming or reversing the 
rejection.

XX. Public Participation

    BOEM will make all comments on the PSN publicly available on 
https://www.regulations.gov under the docket number and will consider 
each comment prior to publication of the FSN. BOEM discourages 
anonymous comments; please include your name, address, and telephone 
number or email address as part of your comment. You should be aware 
that your entire comment, including your name, address, and any other 
personally identifiable information (PII) included in your comment, may 
be made publicly available at any time.
    For BOEM to consider withholding from disclosure your PII, you must 
identify, in a cover letter, any information contained in the submittal 
of your comments that, if released, would constitute a clearly 
unwarranted invasion of your personal privacy. You must also briefly 
describe any possible harmful consequences of the disclosure of 
information, such as embarrassment, injury, or other harm.
    Even if BOEM withholds your information in the context of this PSN, 
your comment is subject to the Freedom of Information Act (FOIA). If 
your submission is requested under the FOIA, your information will only 
be withheld if a determination is made that one of the FOIA's 
exemptions to disclosure applies. Such a determination will be made in 
accordance with the Department of the Interior's FOIA regulations and 
applicable law.
    Note that BOEM will make available for public inspection, in their 
entirety, all comments submitted by organizations and businesses, or by 
individuals identifying themselves as representatives of organizations 
or businesses.

XXI. Protection of Privileged and Confidential Information

    BOEM will protect privileged and confidential information that you 
submit consistent with FOIA and 30 CFR 585.114. Exemption 4 of FOIA 
applies to ``trade secrets and commercial or financial information 
obtained from a person'' that is privileged or confidential. (5 U.S.C. 
552(b)(4)). If you wish to protect the confidentiality of 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.

[[Page 35236]]

    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 the Secretary and 
BOEM determine that disclosure may, among other things, cause a 
significant invasion of privacy, risk harm to the historic resources, 
or impede the use of a traditional religious site by practitioners. 
Tribes and other interested parties should designate such information 
that they wish to be withheld as confidential and provide the reasons 
why BOEM should do so.
    Authority: 43 U.S.C. 1337(p); 30 CFR 585.211 and 585.216.

Elizabeth Klein,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2024-09390 Filed 4-30-24; 8:45 am]
BILLING CODE 4340-98-P