[Federal Register Volume 89, Number 170 (Tuesday, September 3, 2024)]
[Notices]
[Pages 71398-71410]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-19619]


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

DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2024-0042]


Pacific Wind Lease Sale 2 for Commercial Leasing for Wind Power 
Development on the Outer Continental Shelf Offshore Oregon--Final Sale 
Notice

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Final sale notice.

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

SUMMARY: This final sale notice (FSN) contains information pertaining 
to the areas available for commercial wind power leasing during Pacific 
Wind Lease Sale 2 (PACW-2) on the Outer Continental Shelf (OCS) 
offshore Oregon. Specifically, this FSN details certain provisions and 
conditions of the leases, auction details, the lease form, criteria for 
evaluating competing bids, and procedures for award, appeal, and lease 
execution. The Bureau of Ocean Energy Management (BOEM) will offer two 
lease areas using an ascending clock auction with multiple-factor 
bidding: Lease OCS-P 0566 and Lease OCS-P 0567 (Lease Areas). Bidders 
will be subject to a `one-per-customer' rule, as explained below. The 
Lease Areas are in the previously identified wind energy areas (WEAs) 
Brookings and Coos Bay. The issuance of any lease resulting from this 
sale will not constitute approval of project-specific plans to develop 
offshore wind energy. If submitted by the lessee, such plans, will be 
subject to environmental, technical, and public reviews prior to a BOEM 
decision on whether the proposed activity should be authorized.

DATES: BOEM will hold an online mock auction for potential bidders 
starting at 7:00 a.m. Pacific Time (PT)/10:00 a.m. Eastern Time (ET) on 
October 10, 2024. The monetary auction will be held online and will 
begin at 7:00 a.m. PT/10:00 a.m. ET on October 15, 2024. Additional 
details are provided in the section entitled ``Deadlines and Milestones 
for Bidders.''

FOR FURTHER INFORMATION CONTACT: Jean Thurston-Keller, Bureau of Ocean 
Energy Management, Office of Strategic Resources, 760 Paseo Camarillo, 
Suite 102 (CM102), Camarillo, California 93010-6002 or 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    a. 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 281 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.
    b. 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 
(NCCOS) team then used an ocean planning modeling tool to assist in the 
identification of the two draft WEAs on the OCS offshore Oregon. The 
modeling tool, data inputs, and methodology used to identify the WEAs 
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 219,547 
acres. BOEM later extended the comment period for an additional 15 days 
for a total 75-day public comment period.
    BOEM considered the following information sources, among others, 
when identifying the draft WEAs: comments and nominations received on 
the Call; input from the BOEM 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.
    After the close of the draft WEA comment period on October 31, 
2023, BOEM reviewed the input from all parties mentioned above and 
finalized the Area ID memorandum. BOEM announced the designation of the 
two final WEAs on February 13, 2024. 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. If fully developed, both final WEAs combined could support 
approximately 3.16 gigawatts of wind energy capacity. The Oregon Area 
ID documentation can be found at https://www.boem.gov/renewable-energy/state-activities/oregon.
    c. Environmental Reviews: On February 14, 2024, BOEM published a 
notice of intent to prepare an environmental assessment (EA) to 
consider potential environmental consequences of site characterization 
activities (e.g., biological, archaeological, geological, and 
geophysical surveys and core samples)

[[Page 71399]]

and site assessment activities (e.g., installation of meteorological 
buoys) that are expected to take place after issuance of wind energy 
leases in the WEAs. When scoping the EA, BOEM sought comments on the 
issues and alternatives that should inform the EA. BOEM received 242 
comment submissions, which can be found at www.regulations.gov under 
Docket No. BOEM-2023-0065. In addition to the preparation of the EA, 
BOEM completed 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 
informed BOEM's decision on whether to proceed with this FSN. BOEM will 
conduct additional environmental reviews upon receipt of a lessee's 
Construction and Operations Plan (COP), which will include a request 
for a project easement(s), if the proposed leases reach that stage of 
development. Lessees also need to coordinate with state agencies during 
BOEM's COP review regarding potential impacts from the development of 
any cables or other infrastructure that would be located within the 
state's jurisdiction.

II. List of Eligible Bidders

    BOEM has determined that the following 5 entities are legally, 
technically, and financially qualified to bid in the PACW-2 auction, 
pursuant to 30 CFR 585.107 and 585.108:

------------------------------------------------------------------------
                                                                Company
                         Company name                             No.
------------------------------------------------------------------------
Avangrid Renewables, LLC.....................................      15019
BlueFloat Energy Oregon, LLC.................................      15160
OW North America Ventures, LLC...............................      15133
US Mainstream Renewable Power Inc............................      15089
South Coast Energy Waters I, LLC.............................      15198
------------------------------------------------------------------------

    a. Affiliated Entities: On the Bidder's Financial Form (BFF), 
discussed in Section III(a)(i) and Section IX 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 another bidding entity constitutes a presumption of non-control that 
BOEM may rebut.
    ii. They own or have common ownership of between 10 and 50 percent 
of the voting securities or instruments of ownership, or other forms of 
ownership, of another bidding entity, and BOEM determines that there is 
control upon consideration of factors including the following:
    a. The extent to which there are common officers or directors.
    b. With respect to the voting securities, or instruments of 
ownership or other forms of ownership: The percentage of ownership or 
common ownership, the relative percentage of ownership or common 
ownership compared to the percentage(s) of ownership by other bidding 
entities, if a bidding entity is the greatest single owner, or if there 
is an opposing voting bloc of greater ownership.
    c. Shared ownership, operation, or day-to-day management of a 
lease, grant, or facility, as those terms are defined in BOEM's 
regulations at 30 CFR 585.113.
    iii. They are both direct or indirect subsidiaries of the same 
parent company.
    iv. 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. Such an 
agreement need not be formalized to establish affiliated entities.
    v. Other evidence that indicates the existence of power to exercise 
control, such as evidence that one bidding entity has power to exercise 
control over the other, or that multiple bidders collectively have the 
power to exercise control over another bidding entity or entities.
    Affiliated entities are not permitted to compete against each other 
in the auction. Where two or more affiliated entities have qualified to 
bid in the auction, the affiliated entities must decide prior to the 
auction which one (if any) will participate in the auction. If two or 
more affiliated entities attempt to participate in the auction, BOEM 
will disqualify those bidders from the auction.

III. Deadlines and Milestones for Bidders

    This section describes the major deadlines and milestones in the 
auction process from publication of this FSN to execution of a lease 
issued pursuant to this sale.
    a. FSN Waiting Period: During the period between FSN publication 
and the lease auction, qualified bidders must take several steps to be 
able 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 on or 
before September 13, 2024, and it is each bidder's responsibility to 
ensure BOEM's timely receipt of the BFF. If a bidder does not submit a 
BFF by this deadline, BOEM, in its sole discretion, may grant an 
extension to that bidder only if BOEM determines the bidder's failure 
to timely submit a BFF was caused by events beyond the bidder's 
control. The BFF can be downloaded at: https://www.boem.gov/renewable-energy/state-activities/oregon. Once BOEM has processed a bidder's BFF, 
the bidder is allowed to log into www.pay.gov and submit a bid deposit. 
For purposes of this auction, BOEM will not consider BFFs submitted for 
previous lease sales. An original signed BFF may be mailed to BOEM's 
Pacific Regional Office. A signed copy of the form may be submitted in 
PDF format to [email protected]. A faxed copy will not be 
accepted. BFF submissions should be accompanied by a transmittal letter 
on company letterhead. The BFF must be executed on paper with a wet 
signature or with a digital signature affixed by an authorized 
representative listed on the bidder's current legal qualification card 
on file with BOEM, subject to 18 U.S.C. 1001 (False Statements, 
Concealment). Further information about the BFF can be found in the 
``Bidder's Financial Form'' Section VII of this notice.
    ii. Bid Deposit: Once BOEM has processed a BFF and provided the 
appropriate information to the Office of Natural Resources Revenue 
(ONRR), ONRR will populate the Bid Deposit Forms and notify the bidders 
of access to www.pay.gov for the bid deposits. The bidder must log into 
www.pay.gov to submit a bid deposit. To participate in the mock auction 
and the monetary auction, each qualified bidder must provide a bid 
deposit of $2,000,000 no later than September 27, 2024. BOEM will grant 
extensions to this deadline only if BOEM, in its sole discretion, 
determines that the failure to timely submit the bid deposit was caused 
by events beyond the bidder's control. Further information about bid 
deposits can be found in the ``Bid Deposit'' Section X of this notice.
    b. Conducting the Auction:
    i. Affirmative Action: Prior to bidding in the monetary auction, 
each bidder must file the Equal Opportunity Affirmative Action 
Representation Form

[[Page 71400]]

BOEM-2032 (February 2020, available on BOEM's website at www.boem.gov/BOEM-2032/) and the Equal Opportunity Compliance Report Certification 
Form BOEM-2033 (February 2020, available on BOEM's website at 
www.boem.gov/BOEM-2033/) with the BOEM Pacific Regional Office. The 
forms can be submitted digitally to [email protected] or 
mailed to the BOEM Pacific Regional Office. This certification is 
required by 41 CFR part 60 and Executive Order (E.O.) 11246, issued 
September 24, 1965, as amended by E.O. 11375, issued October 13, 1967, 
and by E.O. 13672, issued July 21, 2014. Both forms must be on file 
with BOEM for the bidder(s) prior to the execution of any lease 
contract.
    ii. Notification of Eligibility for Bidding Credits: BOEM will 
notify each bidder of its eligibility for bidding credits and the value 
of those bidding credits prior to the Mock Auction.
    iii. Mock Auction: BOEM will hold a Mock Auction on October 10, 
2024, beginning at 7:00 a.m. PT/10:00 a.m. ET, which 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.
    iv. The Auction: On October 15, 2024, BOEM, through its contractor, 
will commence the multiple-factor auction. The first round of the 
auction will start at 7:00 a.m. PT/10:00 a.m. ET. The auction will 
proceed electronically according to a schedule to be distributed by the 
BOEM Auction Manager at the beginning of the auction, subject to any 
revisions (which will be communicated to bidders during the auction). 
BOEM anticipates that the auction will last one or two business days, 
but the auction may continue for additional business days, as 
necessary, until the auction ends in accordance with the procedures 
described in the ``Auction Procedures'' section of this notice.
    v. Announce Provisional Winners: BOEM will announce the provisional 
winners of the lease sale after the auction ends.
    c. 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 coordinate with ONRR to return their 
bid deposits.
    ii. Department of Justice (DOJ) Review: DOJ will have 30 days in 
which to conduct an antitrust review of the auction, pursuant to 43 
U.S.C. 1337(c).
    iii. Delivery of the Lease: BOEM will provide an unsigned copy of 
the lease to each provisional winner, with instructions on how to 
execute the lease.
    iv. Return the Lease: Within ten business days of receiving the 
lease, the auction winners must post financial assurance, pay any 
outstanding balance of their winning bids (i.e., winning cash bid less 
applicable bid deposits), and sign and return the executed lease. The 
winners may request extensions and BOEM, in its discretion, may grant 
such a request.
    v. Execution of Lease: BOEM will execute the lease by signing the 
lease on behalf of the United States only after the provisional winner 
completes the requirements in paragraph (b) of 30 CFR 585.225 and any 
appeals timely filed under Sec.  585.118(c)(1) have been resolved. 
After BOEM executes the lease, the provisional winner becomes the 
winning bidder, and BOEM will send the winning bidder an electronic 
version of the fully executed copy of the lease. The lease takes effect 
as set forth in Sec.  585.237. The first 12 months' rent under Sec.  
585.503(a) is due 45 calendar days after receiving a copy of the 
executed lease from BOEM.

IV. Areas Offered for Leasing

    The two Lease Areas included in this FSN are the same size and 
orientation as were described in the Proposed Sale Notice (PSN). BOEM's 
designation of the two Lease Areas offered in the FSN is informed by 
coordination with BOEM's intergovernmental task force members, 
consultation and engagement with Tribes, stakeholder engagement, a 
partnership with NOAA's NCCOS to use spatial modeling to inform the 
identification of WEAs, and consideration of the 281 comments that BOEM 
received in response to the PSN. The two areas BOEM is offering for 
lease are: the Brookings Lease Area, OCS-P 0567, which consists of 
133,792 acres and is approximately 18 miles from shore; and the Coos 
Bay Lease Area, OCS-P 0566, which consists of 61,203 acres and is 
approximately 32 miles from shore.
    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. The 
areas available for lease, as listed in Table 1, will be auctioned in a 
single auction.

                    Table 1--PACW-2 Final Lease Areas
------------------------------------------------------------------------
           Lease area name               Lease area ID         Acres
------------------------------------------------------------------------
Brookings............................         OCS-P 0567         133,792
Coos Bay.............................         OCS-P 0566          61,203
    Total............................  .................         194,995
------------------------------------------------------------------------

    a. Map of the Area for Leasing: A map of the Lease Areas, and GIS 
spatial files X, Y (eastings, northings) UTM Zone 18, NAD83 Datum, and 
geographic X, Y (longitude, latitude), NAD83 Datum can be found on 
BOEM's website at: www.boem.gov/renewable-energy/state-activities/oregon.

V. Lease Stipulations

    BOEM is including several lease stipulations in Addendum C of each 
lease related to reporting requirements, avoiding and minimizing 
potential future user conflicts and environmental impacts, project 
labor agreements, national security, and project design. BOEM is also 
including conditions of the Oregon Department of Land, Conservation and 
Development's conditional concurrence with the federal consistency 
determination pursuant to the Coastal Zone Management Act for the 
Oregon proposed Lease Areas. Requirements pertaining to a single 
activity may arise from more than one consultation process and may 
also, in some instances, be slightly different; where this has 
occurred, BOEM incorporated the most protective measure in the lease. 
BOEM has also refined some stipulations identified in the PSN and 
proposed leases in response to comments on the PSN.
    a. Reporting requirements: BOEM is including stipulations similar 
to those found in previous leases in other areas of the OCS requiring a 
semi-annual

[[Page 71401]]

progress report from lessees and regular engagement with Tribes and 
parties that may be affected by lessees' activities on the OCS. The 
lease stipulations require working with BOEM to identify: Tribes that 
have cultural and/or historical ties to the Lease Areas, and 
potentially affected parties; coastal communities; commercial and 
recreational fishing industries and stakeholders; educational and 
research institutions; environmental and public interest NGOs; Federal, 
State, and local agencies; mariners and the maritime industry; ocean 
users; submarine cable operators; and underserved communities, as 
defined in Section 2 of E.O. 13985. The report must identify Tribes and 
parties that may be affected by lessees' activities on the OCS and with 
whom the lessees have engaged; provide updates on engagement 
activities; document potential adverse effects to the interests of 
Tribes and parties; document how, if at all, project design or 
implementation has been informed or altered to address those potential 
effects; include feedback from engagement regarding transmission 
planning prior to proposing any export cable route; provide information 
that can be made available to the public; and include strategies to 
reach potentially affected individuals with limited English 
proficiency.
    The stipulations include requirements for lessees to engage in ways 
that minimize linguistic, technological, cultural, capacity, or other 
obstacles. The stipulations encourage lessees to work collaboratively 
with governments, community leadership and organizations, and Tribes 
and to develop specific frameworks for capacity building.
    In acknowledgment of the existing and growing consultation burden 
placed on many of the Tribes and parties, the stipulation also 
requires, to the maximum extent practicable, that lessees coordinate 
with one another on engagement activities. It is BOEM's intention that 
this requirement for lessees to coordinate their engagement apply not 
only to meetings proposed by lessees, but also to reasonable requests 
to coordinate engagement made by Tribes and parties. Coordinated 
engagement among Tribes and lessees is strongly encouraged and is in 
addition to BOEM's responsibilities to federally recognized Tribes 
under E.O. 13175.
    Lastly, the progress report must include an update on activities 
executed under any survey plan and any meteorological and/or 
oceanographic buoy deployment planned or undertaken within the leased 
area that includes confirmation of the measures the lessee took, or 
will take, to satisfy the conditions of any applicable lease 
stipulations.
    b. Communication Plans: BOEM is including lease requirements for 
development of a Native American Tribes Communication Plan, an Agency 
Communication Plan and a Fisheries Communication Plan, as included in 
previous leases. Experience in other regions has shown that 120 days 
after lease execution is not a sufficient time period in which to draft 
comprehensive communications plans for fisheries, Tribes, and 
government agencies. For this Lease Sale, BOEM is extending the 120-day 
requirement to a 180-day requirement to allow sufficient time for 
lessees to engage with entities to develop communication plans.
    c. Best Management Practices: The EA for this lease sale lists a 
number of best management practices which would reduce potential 
impacts to resources, including those with respect to Water Quality, 
Marine Debris Awareness and Prevention, Birds, Commercial Fishing, 
Historic Properties, Sensitive Seafloor Habitats, and Protected Species 
(in addition to requirements arising under Endangered Species Act (ESA) 
Consultation and described below). The full text of the EA, including 
Appendix E, must be reviewed, and the appropriate measures should be 
incorporated into project activities by lessees.
    d. Protected Species: In August 2024, BOEM published the Final EA, 
which includes the most current measures to minimize potential adverse 
impacts, including Endangered Species Act (ESA)-listed species of 
marine mammals and sea turtles. BOEM has included in the leases these 
measures from the EA and the ESA Concurrence Letter and Essential Fish 
Habitat (EFH) Response issued on July 12, 2024.
    e. Marine Mammal Protection Act Authorization(s): If the lessee is 
required to obtain an authorization pursuant to section 101(a)(5) of 
the Marine Mammal Protection Act prior to conducting survey activities 
in support of plan submittal, the lessee must provide BOEM with a copy 
of the authorization prior to commencing these activities.
    f. Project Labor Agreements (PLAs) and Supply Chain: BOEM is 
committed to workforce safety and the establishment of a durable 
domestic supply chain that can sustain the U.S. offshore wind energy 
industry, including for the leases offered in this sale. To advance 
these goals, BOEM is including three lease stipulations, one for safety 
requirements, a second that encourages construction efficiency for 
projects, and a third that contributes towards establishing a domestic 
supply chain:
    i. As part of its safety requirements, lessees must maintain all 
places of employment for activities in compliance with occupational 
safety and health standards, free from recognized hazards to employees 
of the lessee or of any contractor or subcontractor operating under 
this lease, and free from retaliation or discrimination against any 
employee or contractor who raises a health and safety concern on the 
job.
    ii. A second stipulation requires lessees to make every reasonable 
effort to enter into a PLA covering the construction stage of any 
project for the Lease Areas.
    iii. The third stipulation requires lessees to establish a 
Statement of Goals in which the lessee describes its plans for 
contributing to the creation of a robust and resilient U.S.-based 
floating offshore wind industry supply chain that would facilitate this 
or other renewable energy projects permitted by BOEM.
    The lessee is also required to provide regular progress updates on 
the achievement of those goals to BOEM, and BOEM will make those 
updates publicly available.
    g. Research Site Access: This stipulation makes explicit that BOEM, 
or its designated representative, retains the right to access, for 
research purposes, the site of any operation or activity conducted 
under this lease.
    h. Archaeological Survey Requirements: This stipulation requires 
that the lessee provide to BOEM, in the associated plan submissions, a 
description of the methods it will use to conduct archaeological 
surveys in support of meteorological and oceanographic buoy siting and 
SAP and COP development, in addition to the survey results. The lessee 
is required to coordinate a Tribal pre-survey meeting with Tribes that 
have cultural and/or historical ties to the Lease Area, and the lessee 
must work with BOEM to identify such Tribes. In the post-review 
discovery clauses, the stipulation requires that, in the event of an 
unanticipated discovery of a potential archaeological resource, the 
lessee will immediately halt bottom-disturbing activities occurring 
within 50 meters (164 feet) or less of the discovery and that the 
avoidance distance must be calculated from the maximum discernible 
extent of the archaeological resource. The lessee must follow the 
procedures in 30 CFR 585.702 to notify BOEM of the discovery and 
provide written notification using the State of Oregon's Inadvertent 
Discovery Plan template, available at: https://

[[Page 71402]]

www.oregonlegislature.gov/cis/Pages/archaeology.aspx.
    i. Foreign Interest: To protect national defense capabilities and 
military operations, BOEM is requiring the lessee to provide to the 
Department of Defense (DoD) specific information about the personnel 
allowed to access the wind turbine structures and associated data 
systems. That information includes the names of entities or persons 
having a direct ownership interest in an offshore wind energy facility, 
as well as any changes in ownership interests; and the names of the 
material vendors, entities, and persons with whom the lessee will 
potentially execute contracts to perform construction, supply turbines 
or other components, or conduct construction and operational activities 
at the facility. In addition, the lessee must resolve DoD's security 
concerns before it allows access to the site by foreign persons or 
representatives of foreign entities for which DoD has raised concerns 
and before the lessee uses wind turbines or other permanent on-site 
equipment manufactured by such an entity.
    j. Notice of Assignment to the Committee on Foreign Investment in 
the United States (CFIUS): Under BOEM's regulations at 30 CFR 585.107, 
a lessee must be one of the following: (1) a citizen or national of the 
United States; (2) an alien lawfully admitted for permanent residence 
in the United States, as defined in 8 U.S.C. 1101(a)(20); (3) a 
private, public, or municipal corporation organized under the laws of 
any State of the United States, the District of Columbia, or any 
territory or insular possession subject to U.S. jurisdiction; (4) an 
association of such citizens, nationals, resident aliens, or 
corporations; (5) an Executive Agency of the United States, as defined 
in 5 U.S.C. 105; (6) a State of the United States; or (7) a political 
subdivision of a State of the United States. BOEM is including a 
stipulation that requires any proposed assignee of the lease that is a 
foreign-controlled business entity under the regulations at 31 CFR part 
800 to provide joint notice, with the lessee/assignor, to CFIUS of the 
proposed leasing transaction, in accordance with applicable regulations 
at 31 CFR part 800, subpart D, and to provide a copy of the notice to 
the DoD. BOEM's approval of any assignment of lease interest to a 
foreign-controlled business entity, as defined in 31 CFR part 800, is 
subject to this CFIUS notice stipulation. Such assignments would take 
place only after CFIUS provides notice that it has concluded all 
necessary reviews under section 721 of the Defense Production Act of 
1950, as amended, with respect to the leasing decision or assignment.
    j. Oregon Department of Land, Conservation and Development (DLCD) 
Consistency Determination Conditions: On April 30, 2024, BOEM provided 
a Consistency Determination to the Oregon Coastal Management Program of 
the Department of Land Conservation and Development (OCMP). On July 17, 
2024, OCMP concurred conditionally with BOEM's Consistency 
Determination and BOEM has included conditions in the leases to address 
OCMP's conditions.

VI. Potential Future Restrictions

    a. Measures for Vessel Transit: The information currently available 
does not indicate that vessel routing mitigation measures are warranted 
in the Lease Areas at lease execution, and the U.S. Coast Guard PAC-
PARS study recommends fairways that avoid the Lease Areas entirely. 
However, at the COP stage, BOEM may consider designating portions of 
the Lease Areas as areas of no surface occupancy to facilitate vessel 
transit and continuance of existing uses.
    b. Archaeological Resources: 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 
archaeological and cultural resources. Potential development may be 
restricted consistent with requirements of the National Historic 
Preservation Act. BOEM will require further data collection and 
evaluation of submerged cultural resources, culturally significant 
viewsheds, and restrictions on impacts to these resources will be 
reviewed by BOEM during the COP stage.
    c. NOAA U.S. Integrated Ocean Observing System (IOOS) High-
Frequency (HF) Radar: Potential bidders are advised that offshore wind 
energy projects in the Lease Areas may cause wind turbine interference 
to NOAA's IOOS HF oceanographic radars, which provide measurement 
coverage of the lease area region. Due to potential implications to 
maritime safety, navigation, U.S. Coast Guard search-and-rescue, 
weather forecasting, and other applications of HF-radar systems' data, 
BOEM may require future mitigation as a condition of project approval.
    d. Benthic and Seafloor Habitat Surveys: Potential bidders are 
advised that portions of the Lease Areas may not be available for 
future development due to sensitive seafloor habitats, especially 
portions of the Brookings Lease Area. BOEM will require further data 
gathering and comprehensive high-resolutions mapping and sampling of 
seafloor habitats from lessees and may place further restrictions on 
disturbances of sensitive seafloor habitats as a condition of a COP 
approval, including potential mitigations in facility design.
    e. Scientific surveys: Potential bidders are advised that NMFS 
conducts long-term scientific surveys along the U.S. West Coast, 
including in the Lease Areas, necessary for the management of NOAA 
trust resources. Measures may be needed to avoid and minimize impacts 
to these federal surveys from site assessment and characterization 
activities and any future offshore wind infrastructure. Where impacts 
cannot be avoided, mitigation measures, developed in concert with NMFS, 
may need to be employed for the operational life span of the lease.

VII. Lease Terms and Conditions

    BOEM has made available the terms, conditions, and stipulations for 
the commercial wind leases that will be offered through this sale. BOEM 
reserves the right to require compliance with additional terms and 
conditions associated with the approval of a COP. The lease forms are 
on BOEM's website at: https://www.boem.gov/renewable-energy/state-activities/oregon. Each lease will include the following attachments:
    1. Addendum A (``Description of Leased Area and Lease 
Activities'');
    2. Addendum B (``Lease Term and Financial Schedule'');
    3. Addendum C (``Lease-Specific Terms, Conditions, and 
Stipulations'');
    4. Addendum D (``Project Easement'').
    Addenda A, B, and C provide detailed lease terms and conditions. 
Addendum D will be completed at the time of COP approval or approval 
with modifications if a COP is approved.
    a. Revised Lease Terms and Conditions as a Result of the Renewable 
Energy Modernization Rule: On May 15, 2024, BOEM published in the 
Federal Register the Renewable Energy Modernization Rule (Rule), which 
went into effect on July 15, 2024. To ensure consistency with the Rule, 
BOEM made revisions to the lease published with the PSN that are 
reflected in the lease published with this FSN. Substantial changes 
were made to the following sections:

 Section 6: Associated Project Easements
 Section 10: Financial Assurance
 Addendum A: V. Description of Lease Activities
 Addendum B: I. Lease Periods; III. Lease Payments; IV. 
Financial Assurance (deleted in its entirety)
 Addendum C: 3.1.5 Survey and Meteorological and/or 
Oceanographic

[[Page 71403]]

Buoy Deployment Reporting; 5.5.5 Geotechnical Exploration and 
Deployment of Meteorological and/or Oceanographic Buoys

    b. Required Plans for Potential Development of Executed Leases: 
Each commercial lease has a preliminary period of up to five years. 
During the preliminary period, the lessee must submit a COP. The 
preliminary period begins on the effective date of the lease and ends 
either when a COP is received by BOEM for review or at the expiration 
of five years, whichever occurs first. Lessees may request an extension 
of the lease preliminary period for good cause, such as the need for 
more time to obtain an offtake agreement. In its discretion, BOEM may 
approve the request.

VIII. Lease Payments

    This section provides an overview of the required annual payments 
under the lease. Potential bidders should review the lease for more 
detailed information, including any changes from leases issued in 
previous sales.\1\
---------------------------------------------------------------------------

    \1\ Note that BOEM's Renewable Energy Modernization Rule (89 FR 
42602), published May 15, 2024, became effective on July 15, 2024. 
The leases offered in this sale conform to the regulations in Part 
585 as modified.
---------------------------------------------------------------------------

    a. Rent: Pursuant to 30 CFR 585.225(f) and 585.503, the first 
year's rent payment of $3 per acre is due within 45-calendar days after 
the lessee receives the executed 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 will be due on the relinquished portion of 
the Lease Area. Later relinquishments of any portion of the Lease Area 
will reduce the lessee's rent payments starting in the year following 
BOEM's approval of the relinquishment.
    A lease issued under 30 CFR part 585 confers on the lessee the 
right to one or more project easements, without further competition, 
for the purpose of installing, maintaining, repairing and replacing: 
gathering, transmission, and distribution, and inter-array cables; 
power and pumping stations; facility anchors; pipelines; and associated 
facilities and other 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, as provided under subpart G 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. 
Annual rent for a project easement is the greater of $5 per acre per 
year, or $450 per year. If a COP revision results in increased easement 
acreage, BOEM will require the appropriate amount of additional rent 
when it approves the revised COP.
    b. Operating Fee: For purposes of calculating the initial annual 
operating fee payment under 30 CFR 585.506, BOEM applies an operating 
fee rate to a proxy for the wholesale market value of the electricity 
expected to be generated from the project during its first 12 months of 
operations. This initial payment will be prorated to reflect the period 
between the commencement of commercial operations and the Lease 
Anniversary. The initial annual operating fee payment will be due 
within 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 will be calculated as follows:
[GRAPHIC] [TIFF OMITTED] TN03SE24.084

    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 ONRR as an annual operating fee. For the Lease Areas, 
BOEM will 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: The capacity factor relates to the amount of 
energy delivered to the grid during a period of time compared to the 
amount of energy the wind facility would have produced at full capacity 
during that same period of time. BOEM will 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 full 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,

[[Page 71404]]

the following table provides the 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.
Coos Bay, OCS-P 0566......................  Mid-Columbia.
------------------------------------------------------------------------

    c. Financial Assurance: Within 10 business days after receiving the 
unsigned lease copy for execution and pursuant to 30 CFR 585.516(a)(1) 
the provisional winners must provide an initial lease-specific bond or 
other BOEM-approved financial assurance instrument in the amount of 
annual rent due over the next 12 months. 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 the financial 
assurance instrument 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 payment 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 required in the BFF 
referenced in this FSN. A copy of the 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 
must use to create an account in www.pay.gov (if it has not already 
done so). BOEM must receive BFFs, including Conceptual Strategies, no 
later than September 13, 2024. If a bidder does not submit a BFF for 
this sale by the deadline, BOEM, in its sole discretion, may grant an 
extension to that bidder only if BOEM determines the bidder's failure 
to timely submit a 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. BFFs submitted by bidders for previous lease sales will not 
satisfy the requirements of this auction.
    For the PACW-2, BOEM will accept bidders' BFFs and Conceptual 
Strategies electronically or by mail. Instructions for submission can 
be found in the BFF. The BFF must be executed on paper with a wet 
signature or with the application of a digital signature by an 
authorized representative listed on the legal qualification card 
currently on file with BOEM as authorized to bind the company. Winning 
bidders who have committed to bidding credit(s) must meet the bidding 
credit requirements no later than submission of their first Facility 
Design Report (FDR) or the tenth Lease Anniversary, whichever is 
sooner.

X. Bid Deposit

    A bid deposit is an advance cash payment submitted to BOEM to 
participate in the auction. ONRR will notify the bidders that they have 
access to the Bid Deposit Form in www.pay.gov, and bidders must use the 
Bid Deposit Form on the Weblink for Federal Register is: https://onrr.gov/paying/payment-options?tabs=renewable-energy,bid-deposit-options website to submit a deposit. Bidders may need to create an 
account in www.pay.gov to access the Bid Deposit Form and submit a 
deposit. Each bidder must submit a bid deposit of $2,000,000 no later 
than September 27, 2024, to be eligible to bid for one lease area. Any 
bidder who fails to submit the bid deposit by this deadline may be 
disqualified from participating in the auction. BOEM will consider 
extensions to this deadline only if BOEM, in its sole discretion, 
determines that the failure to timely submit the bid deposit was caused 
by events beyond the bidder's control.
    Following the auction, provisional winners' bid deposits will be 
applied against their winning cash bids. Once BOEM has announced the 
provisional winners, BOEM will coordinate with ONRR to refund bid 
deposits to the other bidders.
    If BOEM offers a lease to a provisionally winning bidder and that 
bidder fails to timely return the signed lease form, establish 
financial assurance, or pay the balance of its bid, BOEM may retain the 
bidder's $2,000,000 bid deposit. In such a circumstance, BOEM may 
determine which bid would have won in the absence of the bid previously 
determined to be the winning bid and may offer a lease to this next 
highest bidder if this next highest bidder is not a provisionally 
winning bidder of the other Lease Area in the auction. This process may 
be repeated if needed.

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 has established a minimum bid of $50.00 
per acre for this lease sale.

XII. Auction Procedures

    a. Multiple-Factor Bidding Auction: BOEM will use a multiple factor 
auction format for this lease sale. Under 30 CFR 585.113, a multiple 
factor auction means an auction that involves the use of factors other 
than cash, such as bidding credits, to incentivize goals or actions 
that support public policy objectives or maximize public benefits 
through the competitive leasing auction process. For any multiple 
factor auction, the monetary value of the bidding credits, if any, is 
added to the value of the cash bids to determine the highest bidder. 
The bid made by a particular bidder in each round of this lease sale 
will represent the sum of the monetary factor (cash bid) and the value 
of any non-monetary factors in the form of bidding credits. Bidders 
will be subject to a `one-per-customer' rule, meaning that each bidder 
can acquire at most one lease area. BOEM will start the auction using 
the minimum bid price for each lease area and will increase prices 
incrementally until no more than one bidder remains bidding on each 
Lease Area in the auction.
    BOEM is not revising the bidding credit percentages from those 
proposed in the PSN: a 15 percent workforce training and/or supply 
chain bid credit, a 5 percent Lease Area Use Community Benefit 
Agreement (CBA) bid credit and a 5 percent general CBA bid credit. The 
total of all offered bidding credits remains at 25 percent. For this 
sale, BOEM is calculating bidding credits as a percentage of the whole 
bid, which is a change from the method used in prior 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 will grant bidding credits to bidders that commit to one or 
more of the following, subject to review of the bidder's BFF and 
Conceptual Strategy.
    i. Supporting workforce training programs for the floating offshore 
wind industry or supporting the development of a domestic supply chain 
for the floating offshore wind industry, or a combination of both; or

[[Page 71405]]

    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 to 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 
offshore wind resources on the OCS; and
    ii. Minimize 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
    iii. Minimize any potential impacts to a Tribe, community or 
stakeholder group from floating offshore wind energy development, 
particularly to assist them in managing transitions, changes or other 
similar impacts which may arise from the development of the Lease Area.
    b. Changes to Auction Rules: BOEM will be employing new auction 
software for lease sales held in 2024. The auction format remains an 
ascending clock auction with multiple-factor bidding. There are four 
main changes to the ascending clock auction rules in the new software 
applicable to this lease sale, as follows:
    i. If a bidder decides to bid on a different Lease Area in a given 
round of the auction, it may submit a bid to reduce demand for the 
Lease Area it bid on in the previous round and, simultaneously, submit 
a bid to increase demand for another Lease Area. This allows a bidder 
the option to switch to another Lease Area if the price of the first 
Lease Area exceeds the bidder's specified bid price.
    ii. Provisional winners will no longer be determined using a two-
step process. The auction rules are implemented in a way such that, 
when the auction concludes, the bidder who remains on a Lease Area 
after the final round becomes its provisional winner. There will be no 
additional processing step.
    iii. The 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. Each bidder's bidding credit will be expressed directly as a 
percentage of the final price of the lease.
    All potential bidders should review the Auction Procedures for 
Offshore Wind Lease Sales (Version 1) located at: https://www.boem.gov/renewable-energy/lease-and-grant-information.
    c. The Auction: Using an online bidding system to host the auction, 
BOEM will start the bidding for Leases OCS-P 0567 and OCS-P 0566 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 (if any) for which the 
bidder bid in Round 1.\2\ The bidder's eligibility for Round 2 equals 
the number of Lease Areas for which the bidder bid in Round 1.
---------------------------------------------------------------------------

    \2\ Bidders specify their demand for a lease area with either a 
0 or 1 in the auction system. A demand of 1 indicates the lease area 
that they are bidding on. Processed demand is the demand, either 0 
or 1 of a bidder for a lease area following the processing of the 
bids for the round.
---------------------------------------------------------------------------

    Starting in Round 2, each Lease Area is assigned a range of prices 
for the round. The start-of-round price is the lowest price in the 
range, and the clock price is the highest price in the range. A bidder 
still eligible to bid after the previous round can either 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 at any price 
in the range for that round to reduce demand for that Lease Area. 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 can 
optionally 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 round's 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 equals 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).\3\
---------------------------------------------------------------------------

    \3\ 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, 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.

[[Page 71406]]

    The increment by which the clock price exceeds the start-of-round 
price will be determined based on several factors including, but not 
limited to, the expected time needed to conduct the auction and the 
number of rounds that have already occurred. BOEM reserves the right to 
increase or decrease the increment as it deems appropriate.
    The provisional winner of each Lease Area will pay the final posted 
price (less any applicable bidding credit) or risk forfeiting its bid 
deposit. A provisional winner will be disqualified if it is 
subsequently found to have violated auction rules or BOEM regulations, 
or otherwise engaged in conduct detrimental to the integrity of the 
competitive auction. If a bidder submits a bid that BOEM determines to 
be a provisionally winning bid, the bidder must sign the applicable 
lease documents, post financial assurance, and submit the outstanding 
balance (if any) of its winning bid (i.e., winning bid minus the 
applicable bid deposit and any applicable bidding credits) within ten 
business days of receiving the lease for execution, pursuant to 30 CFR 
585.225(b). BOEM reserves the right to not issue the lease to the 
provisionally winning bidder if that bidder fails to: timely execute 
the lease and return it 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 this FSN. In any of 
these cases, the bidder may 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 Identify Online (FIDO) compliant security key \4\ 
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. Information on the ``Auction 
Login and Authentication Procedures'' is available online at: https://www.boem.gov/renewable-energy/lease-and-grant-information. After BOEM 
has processed the bid deposits, the auction contractor will send an 
email to the authorized individuals, inviting them to practice logging 
into the auction system on a specific day in advance of the mock 
auction. The Login.gov login process, along with the authentication 
process for the auction helpdesk, will also be tested during the mock 
auction.
---------------------------------------------------------------------------

    \4\ 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 a key compliant with the 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.
---------------------------------------------------------------------------

    ii. 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.
    iii. Timing of Auction: The auction will begin at 7:00 a.m. PT/
10:00 a.m. ET on October 15, 2024. Bidders will be able to log into the 
auction system beginning 30 minutes before the start of the auction. 
BOEM recommends that bidders log in earlier than 7:00 a.m. PT/10:00 
a.m. ET on that day to ensure that any login issues are resolved prior 
to the start of the auction.
    iv. Messaging Service: BOEM and its auction contractors will use 
the auction system's messaging service to keep bidders informed on 
issues of interest during the auction. For example, BOEM could change 
the schedule at any time, including during the auction. If BOEM changes 
the schedule during the auction, it will use the messaging service to 
notify bidders that a revision has been made and will direct bidders to 
the relevant page. BOEM will also use the messaging service for other 
updates during the auction.
    v. 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 this 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 FSN. In the 
event of any inconsistency between the Auction Procedures for Offshore 
Wind Lease Sales, the Bidder Manual, and the FSN, the FSN is 
controlling.\5\
---------------------------------------------------------------------------

    \5\ The Bidder Manual describes use of the auction platform and 
is provided to the auction participants in advance of the auction.
---------------------------------------------------------------------------

    i. 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 if a 
company's main internet connection should fail. As a last resort, an 
authorized individual facing technical issues may request to submit its 
bid by telephone. To be authorized to place a telephone bid, an 
authorized individual must contact the auction help desk, at the phone 
number provided to bidders, before the end of the round. The caller 
must 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 \6\ onto their smartphone or tablet.\7\ 
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 BOEM auctions. It enables 
the Google Authenticator app to generate time-sensitive codes that must 
be provided to the help desk representative as part of the user 
authentication process.
---------------------------------------------------------------------------

    \6\ Google Authenticator must be installed from either the Apple 
App Store or the Google Play Store.
    \7\ Installing the Google Authenticator app is only required if 
the app has not already been installed on the smartphone or tablet.
---------------------------------------------------------------------------

    b. 15 Percent Bidding Credit for Workforce Training or Supply Chain

[[Page 71407]]

Development or a Combination of Both: This bidding credit allows a 
bidder to receive a credit of 15 percent of its bid in exchange for a 
commitment to make a qualifying monetary contribution 
(``Contribution''), in the same amount as the bidding credit received, 
to programs or initiatives that support workforce training programs for 
the U.S. 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. The Contribution to workforce training must result in a better 
trained and/or larger domestic floating offshore wind workforce that 
provides 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.
    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 would allow 
BOEM to confirm compliance when the documentation for satisfying the 
bidding credit is submitted. The Contribution must be tendered in full, 
and the lessee must provide documentation evidencing it has made the 
Contribution and complied with applicable requirements, no later than 
the date the lessee submits its first FDR or before the tenth Lease 
Anniversary, whichever is sooner.
    v. 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 floating offshore wind energy projects in the United 
States; (iii) training workers in skills or techniques necessary to 
manufacture or assemble floating offshore wind components, 
subcomponents, or subassemblies. Examples of areas involving these 
skills and techniques include welding; wind energy technology; 
hydraulic maintenance; braking systems; mechanical systems, including 
blade inspection and maintenance; or computers and programmable logic 
control systems; (iv) Tribal floating offshore wind workforce 
development programs or training for employees of an Indian Economic 
Enterprise \8\ 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.
---------------------------------------------------------------------------

    \8\ 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. 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 subassemblies 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; \9\ (iii) technical assistance grants 
to help U.S. manufacturers re-tool or certify (e.g., ISO-9001) for 
floating offshore wind manufacturing; (iv) development of Jones Act-
compliant vessels for the construction, servicing, and/or 
decommissioning of floating offshore wind energy projects in the United 
States; (v) purchase and installation of lift cranes or other equipment 
capable of lifting or moving floating offshore wind 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 floating 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.
---------------------------------------------------------------------------

    \9\ 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 is required to provide documentation showing 
that the lessee has met the financial commitment before the lessee 
submits the first FDR for the lease or before the tenth Lease 
Anniversary, whichever is sooner. 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 will need to describe how the funded initiative or 
program has advanced, or is expected to advance, U.S. floating offshore 
wind workforce training or supply chain development. The documentation 
must also provide qualitative and/or quantitative information that 
includes the estimated number of trainees or jobs supported, or

[[Page 71408]]

the estimated leveraged supply chain investment resulting or expected 
to result from the Contribution. The documentation will need to contain 
any information called for in the Conceptual Strategy that the lessee 
submitted with its BFF and to allow BOEM to objectively verify (i) the 
amount of the Contribution and the beneficiary(ies) of the 
Contribution, and (ii) compliance with the bidding credit criteria 
provided in Addendum ``C'' of the lease. If the lessee's implementation 
of its Conceptual Strategy changes due to market needs or other 
factors, the lessee must explain the changed approach. BOEM reserves 
all rights to determine that 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.
    viii. 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 to the fulfillment of 
the bidding credits. If BOEM were to determine that a lessee or 
assignee had failed to satisfy the requirements of the bidding credit, 
or if a lessee were to relinquish or otherwise fail to develop the 
lease by the tenth anniversary date of lease issuance, the amount 
corresponding to the bidding credit awarded would be immediately due 
and payable to ONRR with interest from the lease Effective Date. The 
interest rate would be the underpayment interest rate identified by 
ONRR on its website. 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.
    5 Percent Bidding Credit for Lease Area Use CBA: This bidding 
credit 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. Lessees must use best 
efforts to provide benefits at least commensurate to the value of the 
bidding credit received. This may include both monetary and non-
monetary benefits. To clarify, any benefits provided to impacted 
communities should not duplicate benefits or mitigation measures 
imposed on the lessee through, or pursuant to, federal statutes other 
than OCSLA. To count toward this bidding credit, any compensatory 
mitigation required by a CBA provision must occur before BOEM requires 
the same compensatory mitigation in the terms and conditions of COP 
approval.
    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.
    ix. 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:
     All written agreements between the lessee and 
beneficiary(ies), including the executed Lease Area Use CBA;
     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
     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.
    x. 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 to the fulfillment of the 
bidding credit. 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 would be immediately due and payable to ONRR with interest from 
the lease Effective Date. The interest rate would be the underpayment 
interest rate identified by ONRR. The lessee 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.
    c. 5 percent Bidding Credit for General CBA: The third bidding 
credit offered 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. Lessees must 
use best efforts to provide benefits at least commensurate to the value 
of the bidding credit received. This may include both monetary and non-
monetary benefits. To clarify, any benefits provided to impacted 
communities should not duplicate

[[Page 71409]]

benefits or mitigation measures imposed on the lessee through, or 
pursuant to, federal statutes other than OCSLA. To count toward this 
bidding credit, any compensatory mitigation required by a CBA provision 
must occur before BOEM requires the same compensatory mitigation in the 
terms and conditions of COP approval.
    (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 General 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.
    d. 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 to the fulfillment of the 
bidding credit. If BOEM were to determine that a lessee or assignee had 
failed to satisfy the requirements of the bidding credit, or if a 
lessee were to relinquish or otherwise fail to develop the lease by the 
tenth anniversary date of lease issuance, the amount corresponding to 
the bidding credit awarded would be immediately due and payable to ONRR 
with interest from the lease Effective Date. The interest rate would be 
the underpayment interest rate identified by ONRR. The lessee 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 to reject any and all bids that do not 
satisfy the requirements and rules of the auction, this FSN, or 
applicable regulations and statutes.

XIV. Anti-Competitive Review

    Bidding behavior in this lease sale is subject to federal antitrust 
laws. Following the auction, but before the acceptance of bids and the 
issuance of the lease, BOEM will ``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 
provisionally winning bidder is found to have engaged in anti-
competitive behavior in connection with this lease sale, BOEM will 
reject its provisionally winning bid. Compliance with BOEM's auction 
procedures and regulations is not an absolute defense to violations of 
antitrust laws.
    Anti-competitive behavior determinations are fact specific. Such 
behavior may manifest itself in several different ways, including, but 
not limited to:
    1. An express or tacit agreement among bidders not to bid in an 
auction, or to bid a particular price;
    2. An agreement among bidders not to bid;
    3. An agreement among bidders not to bid against each other; or
    4. Other agreements among bidders that have the potential to affect 
the final auction price.
    Pursuant to 43 U.S.C. 1337(c)(3), BOEM will decline to award a 
lease if the Attorney General, in consultation with the Federal Trade 
Commission, determines that awarding the lease would 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 or consult legal counsel.

a. Process for Issuing the Lease

    Once all post-auction reviews have been completed to BOEM's 
satisfaction, BOEM will provide an unsigned copy of the lease to each 
provisionally winning bidder. Within 10 business days after receiving 
the lease, the provisionally winning bidders must:
    1. Sign and return the lease on the bidder's behalf;
    2. File financial assurance, as required under 30 CFR 585.516-537; 
and
    3. Pay by electronic funds transfer (EFT) the balance owed (the 
winning cash bid less the applicable bid deposit), if any. BOEM 
requires bidders to use EFT procedures (not 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, and BOEM has processed the provisionally 
winning bidder's payment. Pursuant to 30 CFR 585.225(d), a provisional 
winner may request in writing an extension of the 10-day time limit. 
BOEM, in its discretion, may grant such a request. If the provisionally 
winning bidder does not meet these requirements or otherwise fails to 
comply with applicable regulations or the terms of the FSN, BOEM 
reserves the right not to issue the lease to that bidder. In such a 
case, the provisional winner 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 of the date that a provisional winner 
receives an executed copy of the lease, each provisional winner is 
required to 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.

b. Non-Procurement Debarment and Suspension Regulations

    Pursuant to 43 CFR part 42, subpart C, an OCS renewable energy 
lessee will be required to 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

[[Page 71410]]

condition in their contracts and in other transactions.

c. 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 
may interfere with a fair and proper lease sale. Such events may 
include, but are not limited to, natural disasters (e.g., earthquakes, 
hurricanes, floods, and blizzards), wars, riots, 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.

d. 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. If BOEM 
exercises this right, it will refund appropriate amounts of the bid 
deposits to winning bidders, without interest, as provided in 30 CFR 
585.224(f).

e. Appeals

    Procedures to request reconsideration of rejected bids are provided 
in BOEM's regulations at 30 CFR 585.226(c) and 585.118(c). BOEM's 
decision on a bid is the final action of the Department of the Interior 
and is not subject to appeal to the Office of Hearings and Appeals. 
Under 30 CFR 585.224, 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. You may ask the BOEM Director for 
reconsideration, in writing, within 15 business days of bid rejection, 
under 30 CFR 585.118(c)(1). The Director will send you a written 
response either affirming or reversing the rejection.

f. Protection of Privileged or Confidential Information

    BOEM will protect privileged or confidential information that the 
lessee submits, as authorized by the Freedom of Information Act (FOIA), 
30 CFR 585.114, or other applicable statutes. If the lessee wishes to 
protect the confidentiality of information, the lessee should 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. If your 
submission is requested under the FOIA, your information will only be 
withheld if a determination is made that one of the FOIA's exemptions 
to disclosure applies. Such a determination will be made in accordance 
with the Department's FOIA regulations and applicable law. Labeling 
information as privileged or confidential will alert BOEM to more 
closely scrutinize whether it warrants withholding. Further, BOEM will 
not treat as confidential aggregate summaries of otherwise 
nonconfidential information.

XV. Compliance With the Inflation Reduction Act (Pub. L. 117-169 (Aug. 
16, 2022)) (Hereinafter, the ``IRA''):

    Section 50265(b)(2) of the IRA provides that ``[d]uring the 10-year 
period beginning on the date of enactment of this Act . . . the 
Secretary may not issue a lease for offshore wind development under 
section 8(p)(1)(C) of the OCS Lands Act (43 U.S.C. 1337(p)(1)(C)) 
unless--(A) an offshore [oil and gas] lease sale has been held during 
the 1-year period ending on the date of the issuance of the lease for 
offshore wind development; and (B) the sum total of acres offered for 
lease in offshore [oil and gas] lease sales during the 1-year period 
ending on the date of the issuance of the lease for offshore wind 
development is not less than 60,000,000 acres.'' Oil and Gas Lease Sale 
261 was held on December 20, 2023, offering approximately 72 million 
acres, satisfying the requirements in section 50265(b)(2) of the IRA 
for any offshore wind lease issued by December 20, 2024. BOEM expects 
to issue any leases resulting from PACW-2 no later than the one-year 
anniversary of Lease Sale 261.
    Authority: 43 U.S.C. 1337(p); 30 CFR 585.214 and 585.220 et seq.

Elizabeth Klein,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2024-19619 Filed 8-30-24; 8:45 am]
BILLING CODE 4340-98-P