[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
------------------------------------------------------------------------
Brookings.........................  OCS-P 0567..........         133,792
Coos Bay..........................  OCS-P 0566..........          61,203
                                                         ---------------
    Total.........................  ....................         194,995
------------------------------------------------------------------------

    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:

------------------------------------------------------------------------
                                                                Company
                         Company name                             No.
------------------------------------------------------------------------
Avangrid Renewables, LLC.....................................      15019
BlueFloat Energy Oregon, LLC.................................      15160
OW North America Ventures LLC................................      15133
U.S. Mainstream Renewable Power, Inc.........................      15089
------------------------------------------------------------------------


[[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.
---------------------------------------------------------------------------

    \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