[Federal Register Volume 89, Number 85 (Wednesday, May 1, 2024)]
[Notices]
[Pages 35210-35220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-09391]
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DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
[Docket No. BOEM-2024-0022]
Pacific Wind Lease Sale 2 for Commercial Leasing for Wind Power
Development on the Oregon Outer Continental Shelf--Proposed Sale Notice
AGENCY: Bureau of Ocean Energy Management, Interior.
ACTION: Proposed sale notice; request for comments.
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SUMMARY: The Bureau of Ocean Energy Management (BOEM) proposes to hold
Pacific Lease Sale 2 and offer one or more lease areas (Lease Areas)
for commercial wind power development on the U.S. Outer Continental
Shelf (OCS). The Lease Areas are located in the Brookings and Coos Bay
wind energy areas (WEAs) offshore the State of Oregon. This proposed
sale notice (PSN) contains information pertaining to the areas
available for leasing, certain lease provisions and conditions, auction
details, criteria for evaluating competing bids, and procedures for
lease award, appeals, and lease execution. BOEM proposes a multiple
factor bidding format using a simultaneous clock auction and will use
new auction software for the lease sale, resulting in changes to its
previous auction rules. Any lease resulting from this sale does not
constitute approval for any offshore wind energy facilities. Lessees
must first submit project-specific plans to BOEM and obtain BOEM's
approval before they may start any construction of an OCS wind energy
facility. BOEM will make such plans available for environmental,
technical, and public reviews before deciding whether the proposed
development should be authorized.
DATES: BOEM must receive your comments no later than July 1, 2024.
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 Oregon auction, BOEM must receive your
qualification materials no later than July 1, 2024. Prior to the
auction, BOEM must confirm your qualification to bid in the auction.
ADDRESSES: You may send comments in any of the following ways:
Electronically: Visit https://www.regulations.gov. In the
box titled ``Search for dockets and documents on agency actions'' enter
``BOEM-2024-0022'' and click ``Search.'' Follow the instructions to
submit comments.
Mail or delivery service: Enclose comment in an envelope
labeled ``Comments on Oregon Wind Lease Sale PSN'' and send to: Jean
Thurston-Keller, Bureau of Ocean Energy Management, Office of Strategic
Resources, 760 Paseo Camarillo, Suite 102 (CM102), Camarillo,
California 93010.
For prospective bidders who want to participate in this lease sale:
Enclose your qualification materials in an envelope labeled
``Qualification Materials for Oregon Wind Energy Lease Sale'' and send
to Bureau of Ocean Energy Management, Office of Strategic Resources,
760 Paseo Camarillo, Suite 102 (CM102), Camarillo, California 93010 or
electronically to [email protected].
For more information about submitting comments, see sections XX,
``Public Participation,'' and XXI, ``Protection of Privileged and
Confidential Information,'' in the SUPPLEMENTARY INFORMATION section
below.
FOR FURTHER INFORMATION CONTACT: Jean Thurston-Keller, Bureau of Ocean
Energy Management, [email protected] or (805) 384-6303.
SUPPLEMENTARY INFORMATION:
I. Background
(1) Call for Information and Nominations: On April 29, 2022, BOEM
published the ``Call for Information and Nominations-Commercial Leasing
for Wind Power Development on the Outer Continental Shelf offshore
Oregon'' (Call). The Call consisted of two areas identified as the
Brookings and Coos Bay Call Areas. BOEM received 278 comments from
Tribal nations; the general public; Federal, State, and local agencies;
the fishing industry; industry groups; developers; non-governmental
organizations; universities; and other stakeholders. Comments can be
viewed at https://www.regulations.gov/document/BOEM-2022-0009-0001/comment. Four developers nominated areas for a commercial wind energy
lease within the Call Areas.
(2) Area Identification: After the close of the Call comment period
on June 28, 2022, BOEM initiated the process for identifying possible
leasing areas (Area ID) by reviewing the input received on the Call.
BOEM used the modified Area ID process described in a note to
stakeholders, available at: https://www.boem.gov/newsroom/notes-stakeholders/boem-enhances-its-processes-identify-future-offshore-wind-energy-areas. BOEM and the National Oceanic and Atmospheric
Administration's (NOAA) National Centers for Coastal Ocean Science
[[Page 35211]]
(NCCOS) team then used an ocean planning modeling tool to identify the
two draft WEAs on the OCS offshore Oregon. The modeling tool, data
inputs, and methodology are outlined in the ``NCCOS Draft Report: A
Wind Energy Siting Analysis for the Oregon Call Areas,'' which can be
found at https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/Oregon_WEA_Draft_Report_NCCOS.pdf.
On August 15, 2023, BOEM announced a 60-day public comment period
on the two draft WEAs offshore Oregon, covering approximately 219,568
acres. This comment period was later extended an additional 15 days for
a total 75-day public comment period.
BOEM considered the following non-exclusive information sources
when identifying the draft WEAs: comments and nominations received on
the Call; input from the Oregon Intergovernmental Renewable Energy Task
Force; results of the ``Data Gathering and Engagement Summary Report:
Oregon Offshore Wind Planning''; input from Tribes, Oregon State
agencies, and Federal agencies; comments from stakeholders and ocean
users, including the maritime community, offshore wind developers, and
the commercial and recreational fishing industry; State renewable
energy goals; information on domestic and global offshore wind markets
and technological trends; and the data and information found in
OROWindMap at: https://offshorewind.westcoastoceans.org/visualize/#x=-124.50&y=40.50&z=5&logo=true&controls=true&basemap=ocean&tab=data&legends=false&layers=true.
After the close of the draft WEA comment period on October 31,
2023, BOEM reviewed the input received from all parties mentioned above
and finalized the Area ID memorandum. BOEM announced the final WEAs on
February 13, 2024, by designating two final WEAs within the Call areas.
The first WEA (Brookings) is 133,792 acres and located approximately 18
miles from shore. The second WEA (Coos Bay) is 61,203 acres and located
approximately 32 miles from shore. Both final WEAs combined would
support approximately 2.4 gigawatts of wind energy capacity if fully
developed. The Oregon Area ID documentation can be found at https://www.boem.gov/renewable-energy/state-activities/oregon.
(3) Environmental Reviews: On February 14, 2024, BOEM published a
notice of intent to prepare an environmental assessment (EA). The EA
will consider potential environmental consequences of the anticipated
site characterization (e.g., biological, archaeological, geological,
and geophysical surveys and core samples) and assessment activities
(e.g., installation of meteorological buoys) after issuing wind energy
leases in the WEAs. In addition to the preparation of the draft EA,
BOEM has initiated other consultations under the Endangered Species
Act, the Magnuson-Stevens Fishery Conservation and Management Act, and
the Coastal Zone Management Act. The EA and associated consultations
will inform BOEM's decision whether to proceed with the final sale
notice (FSN). BOEM will solicit comments on the draft EA before it is
finalized. BOEM will conduct additional environmental reviews upon
receipt of a lessee's construction and operations plan (COP) if the
proposed leases reach that stage of development.
II. Areas Proposed for Leasing
BOEM proposes two areas for leasing: the Brookings Lease Area, OCS-
P 0567, and the Coos Bay Lease Area, OCS-P 0566.
------------------------------------------------------------------------
Lease area name Lease area ID Acres
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Brookings......................... OCS-P 0567.......... 133,792
Coos Bay.......................... OCS-P 0566.......... 61,203
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Total......................... .................... 194,995
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Descriptions of the proposed Lease Areas can be found in addendum A
of the proposed leases, which can be found on BOEM's website at https://www.boem.gov/renewable-energy/state-activities/oregon.
(1) Map of the Area Proposed for Leasing: A map of the Lease Areas,
spatial data files, and a list of latitude/longitude coordinates in the
WGS84 datum can be found on BOEM's website at: https://www.boem.gov/renewable-energy/state-activities/oregon.
(2) Potential Future Restrictions to Ensure Navigational Safety:
Potential bidders are advised that portions of the Lease Areas may not
be available for future development (i.e., installation of wind energy
facilities) because of navigational safety concerns. BOEM may require
additional mitigation measures at the COP stage when the lessee's site-
specific navigational safety risk assessment is available to inform
BOEM's decision-making.
(3) Future Restrictions to Protect Sensitive Seafloor Habitats:
Potential bidders are advised that portions of the Lease Areas may not
be available for future development (i.e., installation of wind energy
facilities) because of sensitive seafloor habitats. Based on comments
received during development of the WEAs from Tribes, NOAA's National
Marine Fisheries Service, Oregon Department of Fish and Wildlife, and
other entities, there are areas of known or expected sensitive seafloor
habitats within the WEAs, particularly within the Brookings WEA. The
occurrence of these habitats was shown as part of the NCCOS modeling
and discussed in the Area Identification memorandum. BOEM will require
further data gathering and evaluation of seafloor habitats and expects
to place restrictions on disturbance of sensitive seafloor habitats
during COP review. The Brookings WEA was developed with the intention
of providing sufficient area to accommodate the protection of sensitive
seafloor habitat within the lease area.
III. Participation in the Proposed Lease Sale
(1) Bidder Participation: Entities that have been notified by BOEM
that their qualification is pending or that they are qualified to
participate in the upcoming Oregon auction through their response to
the Call, or by separate submission of qualification materials, are not
required to take any additional action to affirm their interest. Those
entities are listed below:
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Company
Company name No.
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Avangrid Renewables, LLC..................................... 15019
BlueFloat Energy Oregon, LLC................................. 15160
OW North America Ventures LLC................................ 15133
U.S. Mainstream Renewable Power, Inc......................... 15089
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[[Page 35212]]
All other entities wishing to participate in this proposed Oregon
auction must submit the required qualification materials to BOEM by the
end of the 60-day comment period for this PSN.
(2) 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 up to
and 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, or that multiple bidders collectively have the power to
exercise control over another bidding entity or entities.
Affiliated entities are not permitted to compete against each other
in the auction. Where two or more affiliated entities have qualified to
bid in the auction, the affiliated entities must decide prior to the
auction which one (if any) will participate in the auction. If two or
more affiliated entities attempt to participate in the auction, BOEM
will disqualify those bidders from the auction.
BOEM solicits comments from stakeholders on the above criteria for
``affiliated entities'' and will consider this feedback to potentially
update its definition of affiliated entities in the FSN.
IV. Questions for Stakeholders
Stakeholders are encouraged to comment on any matters related to
this proposed lease sale that are of interest or concern. In addition,
BOEM has identified the following issues as particularly important, and
we encourage commenters to address these issues specifically:
(1) 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.
(2) Limits on the Number of Lease Areas per Bidder: BOEM is
proposing to allow each qualified entity to bid for one Lease Area at a
time and ultimately acquire only one Lease Area.
V. Proposed Lease Sale Deadlines and Milestones
This section describes the major deadlines and milestones in the
auction process from publication of this PSN to execution of a lease
issued pursuant to this sale.
(1) The PSN Comment Period:
i. Submit Comments: The public is invited to submit comments during
this 60-day period, which will expire 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/oregon. No registration or RSVP is required to attend.
iii. Submit Qualification Materials: For prospective bidders who
want to participate in this lease sale: All qualification materials
must be received by BOEM by July 1, 2024. This requirement includes the
submission of materials sufficient to establish a company's legal,
technical, and financial qualifications pursuant to 30 CFR 585.106-
585.107. BOEM's qualification guidelines available at https://www.boem.gov/Renewable-Energy-Qualification-Guidelines/ provide
guidance on the types of information you should submit to BOEM. 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.
(2) End of PSN Comment Period to FSN Publication:
i. Review Comments: BOEM will review all comments submitted in
response to the PSN during the comment period.
ii. Finalize Qualifications Reviews: Prior to the publication of
the FSN, BOEM will complete any outstanding reviews of bidder
qualification materials submitted during the PSN comment period. The
final list of eligible bidders will be published in the FSN.
iii. Prepare the FSN: BOEM will prepare the FSN by updating
information contained in the PSN where necessary.
iv. Publish FSN: BOEM will publish the FSN in the Federal Register
at least 30-calendar days before the date of the sale.
(3) FSN Waiting Period: During the period between FSN publication
and the lease auction, qualified bidders will be required to take
several steps to remain eligible to participate in the auction.
i. Bidder's Financial Form: Each bidder must submit a BFF to BOEM
to participate in the auction. The BFF must include each bidder's
conceptual strategy for each bidding credit for which that bidder
wishes to be considered. BOEM must receive each bidder's BFF no later
than the date listed in the FSN. BOEM could consider extensions to this
deadline only if BOEM determines that the failure to timely submit a
BFF was caused by events beyond the bidder's control. The proposed BFF
can be downloaded at: https://www.boem.gov/renewable-energy/state-activities/oregon.
[[Page 35213]]
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
Pacific Region, Office of Strategic Resources, for certification. A
signed copy of the form may be submitted in PDF format to
[email protected]. A faxed copy will not be accepted. Your
BFF submission should be accompanied with a transmittal letter on
company letterhead. The BFF is required to be executed by an authorized
representative listed in the qualification package on file with BOEM in
accordance with 18 U.S.C. 1001 (fraud and false statements). Additional
information regarding the BFF may be found below in section IX,
``Bidder's Financial Form.''
ii. Bid Deposit: Each qualified bidder must submit a bid deposit of
$2,000,000 in order to bid for one (1) Lease Area. Further information
about bid deposits can be found below in section X, ``Bid Deposit''.
(4) Notification of Eligibility for Bidding Credits: Prior to the
mock auction, BOEM will notify each bidder of its determination of
eligibility for bidding credits for the auction.
(5) 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.
(6) The Auction: BOEM, through its contractor, will hold an auction
as described in the FSN. The auction will take place no sooner than 30-
calendar days following the publication of the FSN in the Federal
Register. The estimated timeframes described in this PSN assume the
auction will take place approximately 30-calendar days after the
publication of the FSN. Final dates will be included in the FSN. BOEM
will announce the provisional winners of the lease sale after the
auction ends.
(7) From the Auction to Lease Execution:
i. Refund Non-Winners: Once the provisional winners have been
announced, BOEM will provide the non-winners with a written explanation
of why they did not win and will return their bid deposits.
ii. Department of Justice (DOJ) Review: DOJ will have up to 30-
calendar days to conduct an antitrust review of the auction, pursuant
to 43 U.S.C. 1337(c).
iii. Delivery of the Lease: BOEM will send three lease copies to
each provisional winner, with instructions on how to execute the lease.
Once the lease has been fully executed, a provisional winner becomes an
auction winner. The first year's rent is due 45-calendar days after the
auction winners receive the lease copies for execution.
iv. Return the Lease: Within 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 bid minus
applicable bid deposit and any applicable non-monetary bidding credit),
and sign and return the three executed lease copies. The winners may
request extensions and BOEM may grant such extensions if BOEM
determines that 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 is making available the proposed terms,
conditions, and stipulations for the commercial leases that would be
offered through this proposed sale. BOEM reserves the right to require
compliance with additional terms and conditions associated with the
approval of a site assessment plan (SAP) and COP. The proposed lease is
on BOEM's website at: https://www.boem.gov/renewable-energy/state-activities/oregon. Each lease will 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(s)'').
VIII. Lease Financial Terms and Conditions
This section provides an overview of the required annual payments
and financial assurance under the lease. Please see the proposed lease
for more detailed information, including any changes from past
practices.
(1) Rent: Pursuant to 30 CFR 585.224(b) and 585.503, the first
year's rent payment of $3 per acre is due within 45-calendar days after
the lessee receives the unexecuted lease copies from BOEM. Thereafter,
annual rent payments are due on the anniversary of the effective date
of the lease (the ``Lease Anniversary''). Once commercial operations
under the lease begin, BOEM will charge rent only for the portions of
the Lease Area remaining undeveloped (i.e., non-generating acreage).
For example, for the 61,203 acres of Lease Area OCS-P 0566 (Coos Bay),
the rent payment would be $183,609 per year until commercial operations
begin.
If the lessee submits an application for relinquishment of a
portion of its leased area within the first 45-calendar days after
receiving the lease copies from BOEM and BOEM approves that
application, no rent payment would be due on the relinquished portion
of the Lease Area. Later relinquishments of any portion of the Lease
Area would reduce the lessee's rent payments starting in the year
following BOEM's approval of the relinquishment.
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 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 required at the time the COP revision is approved. Annual rent
for a project easement is the greater of $5 per acre per year or $450
per year.
(2) Operating Fee: For purposes of calculating the initial annual
operating fee payment under 30 CFR 585.506, BOEM applies an operating
fee rate to a proxy for the wholesale market value of the electricity
expected to be
[[Page 35214]]
generated from the project during its first 12 months of operations.
This initial payment will be prorated to reflect the period between the
commencement of commercial operations and the Lease Anniversary. The
initial annual operating fee payment will be due within 90-calendar
days of the commencement of commercial operations. Thereafter,
subsequent annual operating fee payments will be due on or before the
Lease Anniversary.
The subsequent annual operating fee payments will be calculated by
multiplying the operating fee rate by the imputed wholesale market
value of the projected annual electric power production. For the
purposes of this calculation, the imputed market value will be the
product of the project's annual nameplate capacity, the total number of
hours in a year (8,760), the capacity factor, and the annual average
price of electricity derived from a regional wholesale power price
index. For example, the annual operating fee for a 976-megawatt (MW)
wind facility operating at a 40 percent capacity (i.e., capacity factor
of 0.4) with a regional wholesale power price of $40 per megawatt hour
(MWh) and an operating fee rate of 0.02 would be calculated as follows:
[GRAPHIC] [TIFF OMITTED] TN01MY24.048
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 the following table provides the proposed price
data. A similar price dataset may also be used and may be posted by
BOEM at https://www.boem.gov for reference.
------------------------------------------------------------------------
Lease area name Wholesale power price
------------------------------------------------------------------------
Brookings, OCS-P 0567..................... Mid-Columbia Hub.
Coos Bay, OCS-P 0566...................... Mid-Columbia Hub.
------------------------------------------------------------------------
(3) Financial Assurance: Within 10-business days after receiving
the unexecuted lease copies and pursuant to 30 CFR 585.515-585.516, the
provisional winners will 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 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 all SAP, COP, and decommissioning
financial assurance on cost estimates for meeting all accrued lease
obligations at the respective stages of development. The required
amount of supplemental and decommissioning financial assurance will be
determined on a case-by-case basis.
The financial terms described above can be found in addendum ``B''
of the lease, which is available at: https://www.boem.gov/renewable-energy/state-activities/oregon.
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/oregon. 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
strategies, by the deadline set in the FSN. BOEM may consider BFFs,
including any conceptual strategies, 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-
calendar days after the publication of the FSN. BOEM may consider
extensions to this deadline only if BOEM determines that the failure to
timely submit the bid deposit was caused by events beyond the bidder's
control.
Following the auction, bid deposits will be applied against the
winning bid and other obligations owed to BOEM. If a bid deposit
exceeds that bidder's total financial obligation, BOEM will refund the
balance of the bid deposit to the bidder. BOEM will refund bid deposits
to the unsuccessful bidders once BOEM has announced the provisional
winners.
If BOEM offers a lease to a provisional winner and that bidder
fails to timely return the signed lease, establish financial assurance,
or pay the balance of its bid, BOEM will retain the bidder's $2,000,000
bid deposit for the Lease Area. In such a circumstance, BOEM reserves
the right to offer a lease to the
[[Page 35215]]
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
(1) 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 multiple-factor 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 Area and to increase 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 recent
sales, 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 any or all 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;
ii. Establishing a Lease Area Use Community Benefit Agreement
(Lease Area Use CBA) with one or more communities, stakeholder groups,
or Tribal entities whose use of the geographic space of the Lease Area,
or whose use of resources harvested from that geographic space, is
expected to be impacted by the lessee's potential offshore wind
development; or
iii. Establishing a General Community Benefit Agreement (General
CBA) with one or more communities, Tribes, or stakeholder groups that
are expected to be affected by the potential impacts on the marine,
coastal, and/or human environment (such as impacts on visual or
cultural resources) from activities resulting from lease development
that are not otherwise addressed by the Lease Area Use CBA.
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
floating 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;
iii. Mitigate any potential impacts to a community or stakeholder
group from renewable energy activity or structures on the Lease Area,
and particularly to assist fishing and related industries to manage
transitions, gear changes, or other similar impacts which may arise
from the development of the Lease Area; and
iv. Mitigate any potential impacts to a community or stakeholder
group from floating offshore wind energy development, and particularly
to assist local communities to manage transitions, changes, or other
similar impacts which may arise from the development of the Lease Area.
(2) 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 to the ascending clock auction rules.
i. If a bidder decides to bid on a different Lease Area in a
subsequent 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 such a way 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 auction will use a ``second price'' rule. A given Lease
Area will be won by the bidder that submitted the highest bid amount
for the Lease Area, but the winning bidder will pay the highest bid
amount at which there was competition (i.e., the ``second price'').
iv. For sales in which bidders are allowed to bid for and
potentially acquire two or more Lease Areas, any bid for two Lease
Areas will be treated as independent bids for those Lease Areas, rather
than as a package bid.
v. Each bidder's bidding credit will be expressed directly as a
percentage of the final price for the lease.
All potential bidders should review the complete Auction Procedures
for Offshore Wind Lease Sales (Version 1) located at: https://www.boem.gov/renewable-energy/lease-and-grant-information.
(3) The Auction: Using an online bidding system to host the
auction, BOEM will start the bidding for the Lease Areas as described
below.
----------------------------------------------------------------------------------------------------------------
Lease area name Lease area ID Acres Minimum bid
----------------------------------------------------------------------------------------------------------------
Brookings..................................... OCS-P 0567...................... 133,792 $6,689,600
Coos Bay...................................... OCS-P 0566...................... 61,203 3,060,150
----------------------------------------------------------------------------------------------------------------
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 price, for one Lease Area. After Round 1, the bidder's
processed demand is one for the Lease Area for which the bidder bid in
Round 1.\1\
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\1\ 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.
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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.
[[Page 35216]]
A bidder still eligible to bid after the previous round can either
continue bidding at the new round's clock price for the same Lease Area
for which the bidder's processed demand is one or submit a bid to
reduce demand for that Lease Area at any price in the range for that
round. A bid to reduce demand at some price indicates that the bidder
is not willing to acquire that Lease Area at a price exceeding the
specified bid price. A bidder that bids to reduce demand for a Lease
Area could bid to increase demand for the other Lease Area in the same
round.
If an eligible bidder does not place a bid during the round for the
Lease Area for which the bidder's processed demand is one, the auction
system will consider this a request to reduce demand for that Lease
Area at the start-of-round price. That 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 a processed demand of one. If, after any round, a bidder's
processed demand is zero for both Lease Areas, the bidder's eligibility
drops to zero and the bidder can no longer bid in the auction. The
posted price is the price determined for each Lease Area after
processing of all bids for a round. If only one bidder remains on a
Lease Area, the posted price reflects the ``second price'' (i.e., the
highest price at which there was competition for the Lease Area).\2\
---------------------------------------------------------------------------
\2\ 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 a
processed demand of one for a Lease Area will become the provisional
winner for that Lease Area. Otherwise, the auction will continue with a
new round in which the start-of-round price for each Lease Area equals
the posted price of the previous round.
The increment by which the clock price exceeds the start-of-round
price will be determined based on several factors, including, but not
necessarily limited to, the expected time needed to conduct the auction
and the number of rounds that have already occurred. BOEM reserves the
right to increase or decrease the increment as it deems appropriate.
The provisional winners of the auction will pay the final posted
price (less any applicable bidding credit), or risk forfeiting their
bid deposits. A provisional winner will be disqualified if it is
subsequently found to have violated auction rules or BOEM regulations,
or otherwise engaged in conduct detrimental to the integrity of the
competitive auction.
If a bidder submits a bid that BOEM determines to be a
provisionally winning bid, the bidder must sign the applicable lease
documents, post financial assurance, and submit the outstanding balance
of its winning bid (i.e., winning monetary bid minus the applicable bid
deposit and the value of bidding credits, as applicable) within 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,\3\
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.
---------------------------------------------------------------------------
\3\ FIDO keys are produced by many manufacturers, such as Yubico
and Google. They are widely available and can easily be purchased
from Amazon, Best Buy, Walmart, or any other seller of electronics.
The latest generation of the FIDO standard is FIDO2, and each
authorized individual should obtain the key compliant with FIDO2
authentication standard. FIDO keys are typically inserted into a
computer's USB port, so the authorized individual should obtain a
FIDO key compatible with their computer (USB-A or USB-C) or a USB
adapter, as necessary.
---------------------------------------------------------------------------
After BOEM has processed the bid deposits, the auction contractor
will send an email to the authorized individuals, inviting them to
practice logging into the auction website on a specific day in advance
of the mock auction. The Login.gov login process, along with the
authentication for the auction helpdesk, will also be tested during the
mock auction.
If an eligible bidder fails to submit a bid deposit or does not
participate in the first round of the auction, BOEM will deactivate
that bidder's login information.
ii. Timing of Auction: The FSN will provide specific information
regarding when bidders can enter the auction system and when the
auction will start.
iii. Messaging Service: BOEM and the auction contractors will use
the auction 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 an auction, it will use the messaging feature to
notify bidders that a revision has been made and will direct bidders to
the relevant page. BOEM will also use the messaging system for other
updates during the auction.
iv. Bidding Rounds: Bidders are allowed to place bids or to change
their bids at any time during the bidding round. At the top of the
bidding page, a countdown clock shows how much time remains in each
round. Bidders will have until the end of the round to place bids.
Bidders should do so according to the procedures described in the FSN
and the Auction Procedures for Offshore Wind Lease Sales. Information
about the round results will be made available only after the round has
closed, so there is no strategic advantage to placing bids early or
late in the round.
The Auction Procedures for Offshore Wind Lease Sales elaborates on
the auction procedures described in this PSN. In the event of any
inconsistency among the Auction Procedures for Offshore Wind Lease
Sales, the Bidder
[[Page 35217]]
Manual, and the FSN, the FSN is controlling.\4\
---------------------------------------------------------------------------
\4\ 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 individual is able to access the auction system. A
mobile hotspot or other form of wireless access is helpful in case a
company's main internet connection should fail. As a last resort, an
authorized individual facing technical issues may request to submit its
bid by telephone. In order to be authorized to place a telephone bid,
an authorized individual must call the help desk number listed in the
auction manual before the end of the round. BOEM will authenticate the
caller's identity, including requiring the caller to provide a code
from the software token. The caller must also explain the reasons why a
telephone bid needs to be submitted. BOEM may, in its sole discretion,
permit or refuse to accept a request for the placement of a bid using
this alternate telephonic bidding procedure. The auction help desk
requires codes from the Google Authenticator application (app) as part
of its procedure for identifying individuals who call for assistance.
Prior to the auction, all individuals listed on the BFF should download
the Google Authenticator\TM\ mobile app \5\ onto their smartphone or
tablet.\6\ The first time the individual logs into the auction system,
the system will provide a QR token to be read into the Google
Authenticator app. This token is unique to the individual and enables
the Google Authenticator app to generate time-sensitive codes that will
be recognized by the auction system. When an individual calls the
auction help desk, the current code from the app must be provided to
the help desk representative as part of the user authentication
process. BOEM will provide information on this process on its website.
---------------------------------------------------------------------------
\5\ Google Authenticator must be installed from either the Apple
App Store or the Google Play Store.
\6\ Installing the Google Authenticator app is required only if
the app has not already been installed on the smartphone or tablet.
---------------------------------------------------------------------------
(4) 15 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 15 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
that include 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 \7\ 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.
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\7\ https://www.bia.gov/sites/default/files/dup/assets/as-ia/ieed/Primer%20on%20Buy%20Indian%20Act%20508%20Compliant%202.6.18(Reload).p
df.
---------------------------------------------------------------------------
vi. As proposed, Contributions to domestic supply chain development
must promote and support one or more of the following: (i) Development
of a domestic supply chain for the 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; \8\ (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
[[Page 35218]]
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.
---------------------------------------------------------------------------
\8\ Tier-1 denotes the primary offshore wind components such as
the blades, nacelles, towers, foundations, and cables. Tier 2
subassemblies are the systems that have a specific function for a
Tier 1 component. Tier 3 subcomponents are commonly available items
that are combined into Tier 2 subassemblies, such as motors, bolts,
and gears.
---------------------------------------------------------------------------
vii. Documentation: If a lease is issued pursuant to a winning bid
that includes a bidding credit for workforce training or supply chain
development, the lessee 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 must 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 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.
i. Enforcement: The commitment for the bidding credit must be made
in the BFF and included in a lease addendum that 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 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 will be immediately
due and payable to ONRR with interest from the lease Effective Date.
The interest rate will 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.
(5) 5 percent Bidding Credit for Lease Area Use CBA: The second
bidding credit proposed will allow a bidder to receive a credit of 5
percent of its bid in exchange for a commitment to contribute to an
existing Lease Area Use CBA or a commitment to enter into a new Lease
Area Use CBA with a community or stakeholder group whose use of the
geographic space of the Lease Area, or whose use of resources harvested
from that geographic space, is expected to be impacted by the lessee's
potential offshore wind development. To qualify for the credit, the
bidder must commit to the bidding credit requirements in the BFF and
submit a conceptual strategy, as described in the BFF addendum.
(1) Bidders committing to use the Lease Area Use CBA bidding credit
must submit their conceptual strategy, along with their BFF, as further
described below and in the BFF addendum. The conceptual strategy must
describe the actions that the lessee intends to take that will allow
BOEM to verify compliance when the lessee seeks to demonstrate
satisfaction of the requirements for the bidding credit. The lessee
must 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 tenth
Lease Anniversary, whichever is sooner.
(2) Documentation: As proposed, if a lease is awarded pursuant to a
winning bid that includes a Lease Area Use CBA bidding credit, the
lessee must provide written documentation to BOEM demonstrating
execution of the Lease Area Use CBA commitment no later than submission
of the lessee's first FDR or before the tenth Lease Anniversary,
whichever is sooner. The documentation must enable BOEM to objectively
verify the Contribution has met all applicable requirements outlined in
addendum ``C'' of the lease. At a minimum, this documentation must
include:
a. All written agreements between the lessee and beneficiary(ies),
including the executed Lease Area Use CBA;
b. A description of work done with impacted communities, including
the monetary and non-monetary commitments that reflect the value of the
bidding credit received; and
c. Sworn statements by the Lease Area Use CBA signatories or their
assignees, attesting to the truth and accuracy of all the information
provided in the above documentation.
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.
(3) Enforcement: The commitment for the bidding credit will be made
in the BFF and will be included in a lease addendum that 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 requirements of the
bidding credit, or if a lessee were to relinquish or otherwise fail to
develop the lease by the submission of the lessee's first FDR or by the
tenth anniversary date of lease issuance, the amount corresponding to
the bidding credit awarded will be
[[Page 35219]]
immediately due and payable to ONRR with interest from the lease
Effective Date. The interest rate will be the underpayment interest
rate identified by ONRR. The lessee will 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.
(6) 5 percent Bidding Credit for General CBA: The third bidding
credit proposed would allow a bidder to receive a credit of 5 percent
of its bid in exchange for a commitment to contribute to an existing
General CBA or a commitment to enter into a new General CBA with a
community or stakeholder group that is expected to be impacted by the
lessee's potential floating offshore wind development. To qualify for
the credit, the bidder must commit to the bidding credit requirements
in the BFF and submit a conceptual strategy as described in the BFF
addendum. Bidders committing to use the General CBA bidding credit must
submit their conceptual strategy along with their BFF, further
described below and in the BFF addendum. The conceptual strategy must
describe the actions that the lessee intends to take that will allow
BOEM to verify compliance when the lessee seeks to demonstrate
satisfaction of the requirements for the bidding credit.
(1) Documentation: As proposed, if a lease is awarded pursuant to a
winning bid that includes a General CBA bidding credit, the lessee must
provide written documentation to BOEM demonstrating execution of the
General CBA commitment no later than submission of the lessee's first
FDR or before the tenth Lease Anniversary, whichever is sooner. The
documentation must enable BOEM to objectively verify that the
Contribution has met all applicable requirements outlined in addendum
``C'' of the lease. At a minimum, this documentation must include:
a. All written agreements between the lessee and beneficiary(ies),
including the executed General CBA;
b. A description of work with impacted communities to reach
monetary and non-monetary commitments that reflect the value of the
bidding credit received;
c. Sworn statements by the Lease Area Use CBA signatories or their
assignees, attesting to the truth and accuracy of all the information
provided in the above documentation.
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 will need to explain this change. BOEM
reserves the right to determine that the bidding credit has not been
satisfied if changes from the lessee's conceptual strategy result in
the lessee not meeting the criteria for the bidding credit described in
addendum ``C'' of the lease.
(2) Enforcement: The commitment for the bidding credit must be made
in the BFF and will be included in a lease addendum that 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 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 will 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 will 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
time.
XIII. Rejection or Non-Acceptance of Bids
BOEM reserves the right and authority to reject any and all bids
that do not satisfy the requirements and rules of the auction, the FSN,
or applicable regulations and statutes.
XIV. Anti-Competitive Review
Bidding behavior in this sale is subject to Federal antitrust laws.
Following the auction, but before the acceptance of bids and the
issuance of the lease, BOEM must ``allow the Attorney General, in
consultation with the Federal Trade Commission, thirty days to review
the results of [the] lease sale.'' 43 U.S.C. 1337(c)(1). If a
provisional winner is found to have engaged in anti-competitive
behavior in connection with this lease sale, BOEM may reject its
provisionally winning bid. Compliance with BOEM's auction procedures
and regulations is not an absolute defense against violations of
antitrust laws.
Anti-competitive behavior determinations are fact specific.
However, such behavior may manifest itself in several different ways,
including, but not limited to:
a. An express or tacit agreement among bidders not to bid in an
auction, or to bid a particular price;
b. An agreement among bidders not to bid against each other; or
c. Other agreements among bidders that have the potential to affect
the final auction price.
Pursuant to 43 U.S.C. 1337(c)(3), BOEM may decline to award a lease
if the Attorney General, in consultation with the Federal Trade
Commission, determines that awarding the lease may be inconsistent with
antitrust laws.
For more information on whether specific communications or
agreements could constitute a violation of Federal antitrust law,
please see https://www.justice.gov/atr and consult legal counsel.
XV. Process for Issuing the Lease
Once all post-auction reviews have been completed to BOEM's
satisfaction, BOEM will issue three unsigned copies of the lease to the
provisional winner. Within 10-business days after receiving the lease
copies, the provisional winner must:
a. Execute and return the lease copies on the bidder's behalf;
b. File financial assurance, as required under 30 CFR 585.515-537;
and
c. Pay by electronic funds transfer (EFT) the balance owed (the
winning cash bid minus the applicable bid deposit). BOEM will 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 available on ONRR's website at:
https://onrr.gov/paying/payment-options?tabs=renewable-energy,bid-deposit-options.
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,
[[Page 35220]]
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-calendar days after receiving the lease copies, the
provisional winner must pay the first year's rent using the ``ONRR
Renewable Energy Initial Rental Payments'' form available at: https://www.pay.gov/public/form/start/27797604/.
Subsequent annual rent payments must be made following the detailed
instructions 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 offshore
Oregon. The FSN will be published in the Federal Register at least 30-
calendar days before the lease sale is conducted and will provide the
date and time of the auction.
XVIII. Changes to Auction Details
BOEM has the discretion to change any auction detail specified in
the FSN, including the date and time, if events outside BOEM's control
have been found to interfere with a fair and proper lease sale. Such
events may include, but are not limited to, natural disasters (e.g.,
earthquakes, hurricanes, floods, and blizzards), wars, riots, acts 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/oregon. Bidders should call BOEM's
Auction Manager at (703) 787-1121 if they have concerns.
XIX. Appeals
Reconsideration of rejected bid procedures are provided in BOEM's
regulations at 30 CFR 585.118(c) and 585.225. BOEM's decision on a bid
is the final action of the Department of the Interior, and is not
subject to appeal 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:
a. If BOEM rejects your bid, BOEM will provide a written statement
of the reasons and will refund any money deposited with your bid,
without interest.
b. You may ask the BOEM Director for reconsideration, in writing,
within 15-business days of bid rejection. The Director will send you a
written response either affirming or reversing the rejection.
XX. Public Participation
BOEM will make all comments publicly available on https://www.regulations.gov under the docket number and will consider each
comment prior to publication of the FSN. BOEM 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 FOIA, BOEM will withhold your
information only if it determines that one of the FOIA's exemptions to
disclosure applies. BOEM will make such a determination in accordance
with the Department of the Interior's FOIA regulations and applicable
law.
BOEM will make available for public inspection, in their entirety,
all comments submitted by organizations and businesses, or by
individuals identifying themselves as representatives of organizations
or businesses.
XXI. Protection of Privileged and Confidential Information
BOEM will protect privileged and confidential information that you
submit consistent with FOIA and 30 CFR 585.113. Exemption 4 of FOIA
applies to ``trade secrets and commercial or financial information
obtained from a person'' that are privileged or confidential. (5 U.S.C.
552(b)(4)). If you wish to protect the confidentiality of any
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.
Access to Information (54 U.S.C. 307103): BOEM may, after
consultation with the Secretary of the Interior, withhold the location,
character, or ownership of historic properties if it determines that
disclosure may, among other things, cause a significant invasion of
privacy, risk harm to the historic resources, or impede the use of a
traditional religious site by practitioners. Tribes and other
interested parties should designate 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. 2024-09391 Filed 4-30-24; 8:45 am]
BILLING CODE 4340-98-P