[Federal Register Volume 89, Number 145 (Monday, July 29, 2024)]
[Notices]
[Pages 60913-60918]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-16626]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2024-0039]


Potential Commercial Leasing for Wind Power Development on the 
Gulf of Mexico Outer Continental Shelf--Request for Competitive 
Interest

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Public notice of an unsolicited request for a Commercial Outer 
Continental Shelf Wind Lease, request for competitive interest, and 
request for public comment.

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SUMMARY: The purpose of this public notice is to: describe the 
unsolicited proposal submitted to the Bureau of Ocean Energy Management 
(BOEM) by Hecate Energy Gulf Wind LLC (Hecate Energy) to acquire an 
outer continental shelf (OCS) commercial wind energy lease; solicit 
indications of interest in acquiring two commercial leases for wind 
energy development on the OCS in the Gulf of Mexico (GOM) in the areas 
described in this notice; and solicit public input regarding the areas 
described in this notice, the potential environmental consequences 
associated with wind energy development in the areas, and existing and 
planned multiple uses of the areas.

DATES: Submissions indicating your interest in or providing comments on 
commercial leasing within the request for competitive interest (RFCI) 
Areas must be received no later than September 12, 2024. Late 
submissions may not be considered.

ADDRESSES: Please submit indications of interest in acquiring a 
commercial wind energy lease within the RFCI Areas electronically via 
email to [email protected] or hard copy by mail to the 
following address: Bureau of Ocean Energy Management, Office of Leasing 
and Plans, 1201 Elmwood Park Boulevard, New Orleans, Louisiana 70123. 
If you elect to mail a hard copy, also include an electronic copy on a 
portable storage device.
    Please submit comments or other information concerning research or 
commercial activities within the RFCI Areas by either of the following 
two methods:
    1. Federal eRulemaking Portal: http://www.regulations.gov. In the 
entry entitled, ``Search for dockets and documents on agency actions,'' 
enter BOEM-2024-0039, and then click ``search.'' Follow the 
instructions to submit public comments and view supporting and related 
materials available for this notice.
    2. By Mail to the Following Address: Bureau of Ocean Energy 
Management, Office of Leasing and Plans, 1201 Elmwood Park Boulevard, 
New Orleans, Louisiana 70123.
    Treatment of confidential information is addressed in the section 
of this notice entitled, ``Protection of Privileged or Confidential 
Information.'' BOEM will post all comments on regulations.gov unless 
labeled as confidential.

FOR FURTHER INFORMATION CONTACT: Karoline DiPerna, BOEM Office of

[[Page 60914]]

Leasing and Plans, 1201 Elmwood Park Boulevard, New Orleans, Louisiana 
70123, (504) 736-5722, or [email protected].

SUPPLEMENTARY INFORMATION:

Purpose of This Request for Competitive Interest

    Responses to this public notice will allow BOEM to determine, 
pursuant to 30 CFR 585.231, whether there is competitive interest in 
acquiring an OCS commercial wind energy lease in the RFCI Areas. In 
addition, this notice provides an opportunity for the public to comment 
on the RFCI Areas, the proposed project, and any potential impacts wind 
energy development in the RFCI Areas may have. BOEM may use comments 
received to further identify and refine the areas being considered for 
wind energy development and inform future environmental analyses 
related to the project.
    This RFCI is published pursuant to subsection 8(p)(3) of the OCS 
Lands Act, 43 U.S.C. 1337(p)(3), and BOEM's regulations at 30 CFR part 
585. Subsection 8(p)(3) of the OCS Lands Act requires that OCS 
renewable energy leases, easements, and rights-of-way be issued ``on a 
competitive basis unless the Secretary [of the Interior] determines 
after public notice of a proposed lease, easement, or right-of-way that 
there is no competitive interest.'' This RFCI provides public notice 
for the areas requested by Hecate Energy described below in the section 
``Description of the RFCI Areas'' and invites the submission of 
indications of interest in acquiring commercial wind energy leases 
within the RFCI Areas. Parties who would like to express competitive 
interest in the RFCI Areas should submit detailed and specific 
information, as described in the section entitled, ``Required 
Indication of Interest Information.'' BOEM will consider the responses 
to this public notice to determine whether competitive interest exists 
in the RFCI Areas.
    This notice also requests that interested and affected parties 
comment and provide information about site conditions and any existing 
or planned multiple uses within the RFCI Areas that may be relevant to 
the proposed project or its potential impacts.

Background

    On February 16, 2024, BOEM received an unsolicited application from 
Hecate Energy for two commercial wind energy leases on the GOM OCS in 
Wind Energy Area (WEA) options C and D. Hecate Energy's proposed Gulf 
Wind Offshore Wind Project 2 (Gulf Wind 2) aims to generate up to 2 
gigawatts (GW) of renewable energy in the GOM. Hecate Energy proposes 
multiple potential uses for this renewable energy, including 
interconnection to the electric grid, sale in power purchase agreements 
to private offtakers, or use for Wind-to-X technologies through which 
offshore wind energy is used to produce another energy resource.
    The proposed Gulf Wind 2 project would consist of up to 133 fixed-
bottom wind turbine generators (WTGs), each with a capacity of 15-23 
megawatts (MW). This would result in an overall maximum capacity of 
approximately 3,000 MW. Each turbine would be deployed on fixed 
monopile or jacket foundation types. Turbines would be connected by 
interconnection cables that are connected to an onshore transition 
point by an export transmission cable. Export cables may run separately 
from each of the two lease areas, or the lease areas may be joined 
offshore with one substation and one central export cable. Following 
extensive research on points of interconnection (POI) in Texas and 
Louisiana, Hecate narrowed its selections to three POI and continues to 
examine 12 potential landfall locations with paths to three designated 
substations.
    More information about Hecate Energy's unsolicited lease request 
can be viewed at https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities.

Determination of Competitive Interest and the Leasing Process

    After the publication of this notice, BOEM will evaluate 
expressions of interest in acquiring a commercial wind energy lease in 
the RFCI Areas. At the conclusion of the comment period for this public 
notice, BOEM will review the submissions received and undertake a 
completeness review for each of those submissions and a qualification 
review for each of the nominating entities. BOEM will then determine 
whether competitive interest exists.
    If, in response to this notice, BOEM receives one or more 
expressions of interest in acquiring a commercial wind energy lease 
from qualified entities who would like to compete for the RFCI Areas, 
BOEM may decide to move forward with the lease issuance process using 
competitive procedures pursuant to 30 CFR 585.211-585.225. If BOEM 
receives no competing expressions of interest from qualified companies, 
BOEM may decide to move forward with the lease issuance process using 
the noncompetitive procedures contained in 30 CFR 585.231.
    If BOEM decides to proceed with issuing a lease in the RFCI Areas, 
whether competitively or noncompetitively, it will comply with all 
applicable requirements and provide the public with additional 
opportunities to provide input pursuant to 30 CFR part 585 and other 
applicable laws, such as the National Environmental Policy Act (NEPA). 
BOEM will also coordinate and consult, as appropriate, with relevant 
Federal agencies, affected Tribes, affected state agencies, and 
affected local governments during the lease development and issuance 
process.
    We note that a lease, whether issued through a competitive or 
noncompetitive process, does not grant the lessee the right to 
construct any facilities on the lease. A lease would only grant the 
lessee the exclusive right to submit site assessment and construction 
and operations plans (30 CFR 585.600 and 585.601) to BOEM for approval 
before the lessee may proceed to the next stage of lease development.

Description of the RFCI Areas

    The RFCI Areas are located in WEA options C and D off the coast of 
Southeast Texas. WEA C totals 74,240 acres, and WEA D totals 68,288 
acres. The combined areas comprise approximately 142,528 acres. Both 
areas are located within the Gulf of Mexico Call Area, which is located 
within the Central Planning Area and Western Planning Area on the OCS 
portion of the Gulf of Mexico. See Figure 1 and Table 1, below.
BILLING CODE 4340-98-P

[[Page 60915]]

[GRAPHIC] [TIFF OMITTED] TN29JY24.003

BILLING CODE 4340-98-C
Figure 1. Map of the RFCI Areas

         Table 1--List of OCS Blocks Included in the RFCI Areas
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                                            Protraction
            Protraction Name                    No.          Block No.
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Beeville................................         NH14-12            7088
Beeville................................         NH14-12            7089
Beeville................................         NH14-12            7090
Beeville................................         NH14-12            7138
Beeville................................         NH14-12            7139
Beeville................................         NH14-12            7140
Beeville................................         NH14-12            7141
Corpus Christi..........................         NG14-03            6039
Corpus Christi..........................         NG14-03            6040
Corpus Christi..........................         NG14-03            6041
Corpus Christi..........................         NG14-03            6042
Corpus Christi..........................         NG14-03            6090
Corpus Christi..........................         NG14-03            6091
Corpus Christi..........................         NG14-03            6092
Bay City................................         NH15-10            6853
Bay City................................         NH15-10            6854
Bay City................................         NH15-10            6855
Bay City................................         NH15-10            6902
Bay City................................         NH15-10            6903
Bay City................................         NH15-10            6904
Bay City................................         NH15-10            6905
Bay City................................         NH15-10            6952
Bay City................................         NH15-10            6953
Bay City................................         NH15-10            6954
Bay City................................         NH15-10            7003
Bay City................................         NH15-10            7004
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[[Page 60916]]

Required Indication of Interest Information

    If you intend to submit an expression of interest in acquiring a 
commercial wind lease within the RFCI Areas, you must provide the 
following:
    (1) The BOEM protraction name, number, and specific whole or 
partial OCS blocks within the RFCI Areas that are of interest for 
commercial wind leasing, including any required buffer area(s). If your 
area(s) includes partial blocks, include the sub-block letter(s) (A-P). 
Additionally, this information should be submitted as a spatial file 
compatible with ArcGIS Pro 3.1.0 in a geographic coordinate system (NAD 
83) in addition to your hard copy submission. If your submission 
includes one or more partial blocks, please describe those partial 
blocks in terms of one sixteenth (i.e., a sub-block) of an OCS block.
    Any request for a commercial wind lease located outside of the RFCI 
Areas should be submitted separately pursuant to 30 CFR 585.230.
    (2) A general description of your objectives and the facilities 
that you would use to achieve those objectives;
    (3) A general schedule of proposed activities, including those 
leading to the development of a commercial wind energy project within 
the RFCI Areas;
    (4) Available and pertinent data and information concerning 
renewable energy resources and environmental conditions in the area 
that you would like to lease, including energy and resource data and 
information used to evaluate the area of interest. Where applicable, 
spatial information should be submitted in a format compatible with 
ArcGIS Pro 3.1.0 either in NAD 83 or unprojected;
    (5) Documentation demonstrating that you are legally qualified to 
hold a lease as set forth in 30 CFR 585.107-585.108. Legal 
qualification documents will be placed in an official file that may be 
made available for public review. If you would like any part of your 
legal qualification documentation to be kept confidential, clearly 
identify what should be kept confidential, and submit it under separate 
cover (see ``Protection of Privileged or Confidential Information'' 
below); and
    (6) Documentation demonstrating that you are technically and 
financially capable of constructing, operating, maintaining, and 
decommissioning the facilities described in paragraph (2) above. 
Guidance regarding the documentation that could be used to demonstrate 
your technical and financial qualifications can be found at: http://www.boem.gov/Renewable-Energy-Program/Regulatory-Information/QualificationGuidelines-pdf.aspx. If you would like any part of your 
technical and financial qualification documentation to be kept 
confidential, clearly identify what should be kept confidential, and 
submit it under separate cover (see ``Protection of Privileged or 
Confidential Information'' below).
    It is critical that you provide a complete submission of interest 
so that BOEM may consider your submission in a timely manner. If BOEM 
reviews your submission and determines that it is incomplete, BOEM will 
inform you of this determination in writing and describe the 
information that BOEM needs from you to deem your submission complete. 
You will be given 15 business days from the date of the letter to 
provide any information that BOEM has determined is missing from your 
original submission. If you do not meet this deadline, or if BOEM 
determines that your second submission is also insufficient, BOEM may 
deem your submission invalid. In such a case, BOEM will not consider 
your submission.

Requested Information From Interested or Affected Parties

    BOEM is also requesting specific and detailed comments from the 
public and interested or affected parties regarding the following:
    1. Geological, geophysical, and biological bathymetric conditions 
(including shallow hazards and live bottom).
    2. Known archaeological or cultural resource sites on the seabed.
    3. Information regarding the identification of historic properties 
or potential effects to historic properties from leasing, site 
assessment activities (including the construction of meteorological 
towers or the installation of meteorological buoys), or commercial wind 
energy development in the RFCI Areas. This includes potential offshore 
and onshore archaeological sites or historic properties within or near 
the RFCI Areas that could potentially be affected by renewable energy 
activities within the RFCI Areas. This information will inform BOEM's 
review of future undertakings under section 106 of the National 
Historic Preservation Act (NHPA) and under NEPA.
    4. Information about potentially conflicting uses of the RFCI 
Areas, including, but not limited to, navigation (in particular, 
commercial and recreational vessel use); significant sediment resource 
areas; oil and gas leasing; and recreational and commercial fisheries 
including, but not limited to, the use of the areas, the fishing gear 
used, seasonal use, and recommendations for reducing use conflicts.
    5. Available and pertinent data and information concerning 
renewable energy resources and environmental conditions. Where 
applicable, spatial information should be submitted in a format 
compatible with ArcGIS Pro 3.1.0 in a geographic coordinate system (NAD 
83).
    6. Information relating to visual resources and aesthetics, the 
potential impacts of wind turbines and associated infrastructure to 
those resources, and potential strategies to help mitigate or minimize 
any visual effects.
    7. Other relevant socioeconomic, cultural, biological, and 
environmental information.
    8. Any other relevant information BOEM should consider during its 
planning and decision-making process for the purpose of issuing leases 
in the RFCI Areas.

Protection of Privileged or Confidential Information

Freedom of Information Act

    BOEM will protect privileged or confidential information you submit 
when required by the Freedom of Information Act (FOIA). Exemption 4 of 
FOIA applies to trade secrets and commercial or financial information 
that is privileged or confidential. If you would like to protect the 
confidentiality of such information, please identify and clearly label 
it with ``Contains Confidential Information'' and request BOEM treat it 
as confidential. BOEM will not disclose such information if BOEM 
determines under 30 CFR 585.114(b) that it qualifies for exemption from 
disclosure under FOIA. Please label privileged or confidential 
information ``Contains Confidential Information'' and consider 
submitting such information as a separate attachment.
    BOEM will not treat as confidential any aggregate summaries of 
privileged or confidential information or comments not containing such 
privileged or confidential information. Information that is not labeled 
as privileged or confidential may be regarded by BOEM as suitable for 
public release. Additionally, BOEM will not treat as confidential (1) 
the legal title of any entity submitting an indication of interest (for 
example, the name of your company), or (2) the list of whole or partial 
blocks that you are indicating an interest in leasing.

[[Page 60917]]

Personally Identifiable Information

    BOEM encourages you not to submit anonymous comments. Please 
include your name and address as part of your comment. You should be 
aware that your entire comment, including your name, address, and any 
personally identifiable information (PII) included in your comment, may 
be made publicly available. All submissions from identified 
individuals, businesses, and organizations will be available for public 
viewing on regulations.gov. For BOEM to withhold your PII from 
disclosure, you must identify any information contained in 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.

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

    BOEM is required, after consultation with the Secretary, to 
withhold the location, character, or ownership of historic resources if 
it determines disclosure may, among other things, risk harm to the 
historic resources or impede the use of a traditional religious site by 
practitioners. Those providing information eligible for protection 
under section 304 of NHPA should designate such information as 
confidential.

BOEM's Environmental Review Process

    BOEM prepared a programmatic environmental assessment (EA) under 
NEPA and conducted some programmatic consultations in the Call Area of 
the Gulf of Mexico to consider the environmental consequences 
associated with issuing commercial wind energy leases. The EA assesses 
the potential environmental impacts from the issuance of up to 18 
leases within the Call Area. This EA is available to the public and can 
be viewed at https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/GOM%20Wind%20Lease%20EA_0.pdf. The EA 
considered the reasonably foreseeable environmental consequences 
associated with leasing, such as site characterization activities 
(including geophysical, geotechnical, archaeological, and biological 
surveys) and site assessment activities (including installation of a 
meteorological buoy). BOEM's environmental analysis found no 
significant impacts. BOEM released a Finding of No Significant Impact 
(FONSI), available online at https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/FONSI_Signed20230524.pdf. 
Additional, site-specific NEPA would be conducted later in the process 
if a lessee obtains a lease and submits a project plan. BOEM also 
conducted programmatic consultations concurrently with, and integrated 
into, the NEPA process for granting a lease. Existing consultations for 
the Endangered Species Act and the Magnuson-Stevens Fishery 
Conservation and Management Act provide programmatic coverage in this 
area. Additional consultations for the Coastal Zone Management Act, 
section 106 of the NHPA, and Executive Order 13175, ``Consultation and 
Coordination with Tribal Governments,'' would be conducted during 
review of a potential project plan. Before BOEM allows a lessee to 
begin construction of a wind energy project in the RFCI Areas, BOEM 
will consider the potential environmental effects of the construction 
and operation of any wind energy facility under a separate, project-
specific environmental review process. This separate environmental 
review process would include additional opportunities for public 
involvement.

Determination of Competitive Interest and Leasing Process

    1. Determination of Competitive Interest: Section 8(p)(3) of OCSLA 
states that ``the Secretary shall issue a lease, easement, or right-of-
way . . . on a competitive basis unless the Secretary determines after 
public notice of a proposed lease, easement, or right-of-way that there 
is no competitive interest.'' Accordingly, BOEM must first determine 
whether there is competitive interest in acquiring a lease within the 
RFCI Areas to develop offshore wind energy. At the conclusion of the 
comment period for this RFCI, BOEM will review the expressions of 
interest received and determine if competitive interest exists in any 
part of the RFCI Areas. For areas with competitive interest, BOEM may 
consider proceeding with competitive leasing as described in the 
section of this RFCI entitled, ``Competitive Leasing Process.'' For 
areas where BOEM determines that only one entity is interested, BOEM 
may consider proceeding with noncompetitive leasing, as described in 
the section entitled, ``Noncompetitive Leasing Process.''
    If BOEM determines that competitive interest exists in the RFCI 
Areas and identifies those areas as appropriate to lease, BOEM may hold 
a competitive lease sale on any or all portions of the RFCI Areas. In 
the event BOEM holds such a lease sale, all qualified bidders, 
including those bidders that did not submit an expression of interest 
in response to this RFCI, will be able to participate in the lease 
sale. BOEM reserves the right not to lease any or all portions of the 
RFCI Areas or to modify such areas from their original, proposed form 
before offering them for lease.
    2. Competitive Leasing Process: BOEM will follow the steps required 
by 30 CFR 585.211 through 585.226 if it decides to proceed with the 
competitive leasing process in the RFCI Areas. A Call for Information 
was issued on November 1, 2021, which includes the areas requested in 
this RFCI. On May 25, 2023, BOEM announced the availability of the 
final EA (https://www.boem.gov/sites/default/files/documents/renewable-energy/state-activities/GOM%20Wind%20Lease%20EA_0.pdf) and that it had 
conducted consultations required by the Coastal Zone Management Act, 
the Endangered Species Act, the Magnuson-Stevens Fishery Conservation 
and Management Act, section 106 of the NHPA, and Executive Order 
13175--``Consultation and Coordination with Tribal Governments.'' 
Therefore, the next steps in the leasing process would include:
    a. Area Identification: Based on the information received in 
response to this RFCI, BOEM would typically determine the level of 
commercial interest and identify the areas that would be appropriate to 
analyze for potential leasing, which would constitute the final WEAs. 
In this situation, because WEAs have already been finalized, this step 
would likely not be necessary.
    b. Proposed Sale Notice (PSN): If BOEM decides to proceed with a 
competitive lease sale within the WEAs, BOEM will publish a PSN in the 
Federal Register with a comment period of 60 days. The PSN would 
describe the areas BOEM intends to offer for leasing, the proposed 
conditions of a lease sale, the proposed auction format of the lease 
sale, and the lease instrument, including lease addenda. Additionally, 
the PSN would describe the criteria and process for evaluating bids in 
the lease sale.
    c. Final Sale Notice (FSN): After considering the comments on the 
PSN, if BOEM decides to proceed with a competitive lease sale, it will 
publish an FSN in the Federal Register at least 30 days before the date 
of the lease sale.
    d. Bid Submission and Evaluation: Following publication of the FSN 
in the Federal Register, BOEM would offer the lease areas through a 
competitive sale process, using procedures specified in the FSN. BOEM 
would review the sale, including bids and bid deposits, for technical 
and legal adequacy, and ensure that bidders have complied with all 
applicable regulations. BOEM

[[Page 60918]]

reserves the right to reject any or all bids and to withdraw an offer 
to lease an area, even after bids have been submitted.
    e. Issuance of a Lease: Following identification of the winning bid 
on a lease area, BOEM would notify the successful bidder and provide a 
set of official lease documents for signature. BOEM requires a 
successful bidder to sign and return the lease, pay the remainder of 
the bonus bid, if applicable, and file the required financial assurance 
within 10 business days of receiving the lease documents. Upon receipt 
of the required payments, financial assurance, and properly signed 
lease forms, BOEM may execute a lease with the successful bidder.
    3. Noncompetitive Leasing Process: BOEM's noncompetitive leasing 
process would include the following steps:
    a. Determination of No Competitive Interest: If, after evaluating 
all relevant information, BOEM determines there is no competitive 
interest in all or a portion of the RFCI Areas, it may proceed with the 
noncompetitive lease issuance process under 30 CFR 585.231(d) through 
(j), which includes the publication of a determination of no 
competitive interest in the Federal Register. Hecate Energy would be 
responsible for paying a fee for the processing costs under 30 CFR 
585.112, including any environmental review that BOEM may require 
before lease issuance. Hecate Energy also would be responsible for 
submitting any required consistency certification and necessary data 
and information in a timely manner pursuant to 15 CFR part 930, subpart 
D, to the applicable State CZMA agency or agencies and BOEM.
    b. Review of Lease Request: BOEM would complete all required 
consultations and environmental analyses before issuing a lease 
noncompetitively. Further, BOEM would coordinate and consult, as 
appropriate, with relevant Federal agencies, federally recognized 
Tribes, affected State and local governments, and other affected or 
interested parties in formulating lease terms, conditions, and 
stipulations.
    c. Lease Issuance: After completing its review of the lease 
request, BOEM may offer one or two noncompetitive leases to Hecate 
Energy covering all or a portion of WEAs C and D. Within 10 business 
days of receiving the lease(s), Hecate Energy must execute them and 
provide a lease-specific bond or other authorized financial assurance 
in the amount of 12 months' rent for each lease, under 30 CFR 585.516, 
to guarantee compliance with all terms and conditions of each lease. No 
later than 45 days of receiving the executed lease(s) from BOEM, the 
lessee must pay BOEM the first 12 months' rent for each lease.

Elizabeth Klein,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2024-16626 Filed 7-26-24; 8:45 am]
BILLING CODE 4340-98-P