[Federal Register Volume 76, Number 76 (Wednesday, April 20, 2011)]
[Notices]
[Pages 22130-22139]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-9545]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management, Regulation and Enforcement

[Docket No. BOEM-2011-0005]


Commercial Leasing for Wind Power on the Outer Continental Shelf 
Offshore New Jersey--Call for Information and Nominations

AGENCY: Bureau of Ocean Energy Management, Regulation and Enforcement 
(BOEMRE), Interior.

ACTION: Call for Information and Nominations for Commercial Leasing for 
Wind Power on the Outer Continental Shelf Offshore New Jersey.

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SUMMARY: The Bureau of Ocean Energy Management, Regulation and 
Enforcement (BOEMRE) invites the submission of nominations for one or 
more commercial leases for the construction of a wind energy project(s) 
on the Outer Continental Shelf (OCS) offshore New Jersey. Although this 
announcement is not itself a leasing announcement, the area described 
herein may be subject to future leasing, and BOEMRE will use the 
response to this Call for Information and Nominations (Call) to gauge 
specific interest in acquiring commercial wind lease(s) in some or all 
of the area, and to determine whether competitive interest exists in 
any particular area as required by 43 U.S.C. 1337(p)(3). Parties 
wishing to submit a nomination in response to this Call should submit 
detailed and specific information as described below in the section 
entitled, ``Required Nomination Information.''
    This announcement also requests that interested and affected 
parties comment and provide information about site conditions, 
resources, and multiple uses within the area identified in this notice

[[Page 22131]]

that would be relevant to BOEMRE's review of the nominations submitted 
and subsequent decision to offer all or part of the area for commercial 
wind leasing. The information that BOEMRE is requesting is described 
below in the section entitled, ``Requested Information from Interested 
or Affected Parties.''
    This notice is published pursuant to subsection 8(p)(3) of the OCS 
Lands Act, which was added by section 388 of the Energy Policy Act of 
2005 (EPAct) (43 U.S.C. 1337(p)(3)), and the implementing regulations 
at 30 CFR Part 285.
    The area under consideration for commercial leasing is located off 
the coast of New Jersey, beginning approximately 7 nautical miles (nmi) 
from the shore, extending roughly 23 nmi seaward to the approximate 100 
ft depth contour, and extending 45 nmi parallel to the Federal/State 
boundary between Avalon and Barnegat Light. This area is approximately 
418 square nmi and contains approximately 43 whole OCS blocks and 34 
partial OCS blocks. This area was delineated in consultation with the 
BOEMRE/New Jersey Renewable Energy Task Force and has been identified 
as a Wind Energy Area (WEA) as referenced and described in the 
Secretary's announcement of the Department's ``Smart from the Start'' 
offshore wind energy initiative. A detailed description of the area and 
its development is found later in this notice.

DATES: BOEMRE must receive your nomination describing your interest in 
this potential commercial leasing area no later than June 6, 2011 for 
your nomination to be considered. BOEMRE requests comments or other 
submissions of information by this same date. BOEMRE will consider only 
the nominations we receive by that time.
    Submission Procedures: You may submit your nominations, comments, 
and information by one of two methods:
    1. Federal eRulemaking Portal: http://www.regulations.gov. In the 
entry titled ``Enter Keyword or ID,'' enter BOEM-2011-0005, then click 
``search.'' Follow the instructions to submit public comments and view 
supporting and related materials available for this notice. BOEMRE will 
post all comments which are not labeled ``Contains Confidential 
Information.''
    2. By mail, sending your nominations, comments, and information to 
the following address: Bureau of Ocean Energy Management, Regulation 
and Enforcement, Office of Offshore Alternative Energy Programs, 381 
Elden Street, Mail Stop 4090, Herndon, Virginia 20170. Nominations 
submitted by mail must be postmarked by June 6, 2011 to be considered 
by BOEMRE for the purposes of determining competitive interest. All 
responses will be reported on regulations.gov.
    If you wish to protect the confidentiality of your nominations or 
comments, clearly mark the relevant sections and request that BOEMRE 
treat them as confidential. Please label privileged or confidential 
information ``Contains Confidential Information'' and consider 
submitting such information as a separate attachment. Treatment of 
confidential information is addressed in the section of this Call 
entitled, ``Protection of Privileged or Confidential Information.'' 
Information that is not labeled as privileged or confidential will be 
regarded by BOEMRE as suitable for public release.

FOR FURTHER INFORMATION CONTACT: William Waskes, Project Coordinator, 
BOEMRE, Office of Offshore Alternative Energy Programs, 381 Elden 
Street, Mail Stop 4090, Herndon, Virginia 20170, (703) 787-1300.

SUPPLEMENTARY INFORMATION:

Purpose of the Call for Information and Nominations

    The OCS Lands Act requires BOEMRE to award leases competitively, 
unless BOEMRE makes a determination that there is no competitive 
interest (43 U.S.C. 1337(p)(3)). The issuance of this notice is not 
intended to indicate that BOEMRE has determined that competitive 
interest exists in the area identified. Rather, this notice is the 
first step in the renewable energy leasing process offshore New Jersey 
and the responses to it will assist BOEMRE in determining if there is 
no competitive interest in the area identified. This notice also 
requests information from interested and affected parties on issues 
relevant to BOEMRE's review of nominations for potential leasing in the 
area identified.
    BOEMRE is issuing a Call instead of a Request for Interest (RFI) to 
facilitate and expedite the leasing process in keeping with the goals 
and objectives of the Secretary of the Interior's ``Smart from the 
Start'' initiative. If an RFI were issued and the responses to it 
indicated competitive interest, the applicable regulations would 
require BOEMRE to issue a Call, which BOEMRE believes would be 
duplicative of the RFI process and, therefore, unnecessary and 
inefficient. Issuance of this Call, without an RFI, is designed to 
enable BOEMRE to analyze information needed to support appropriate 
commercial leasing, while ensuring ample opportunity for input from 
interested and affected parties.
    The responses to this Call could lead to the initiation of a 
competitive process in some areas (i.e., where competition exists for 
certain tracts), and a noncompetitive process in others (where no 
competitive interest exists in certain tracts). The leasing process is 
described more completely under ``Competitive Leasing Process'' and 
``Noncompetitive Leasing Process,'' below. If BOEMRE determines that 
there is no competitive interest in some or all of this area offshore 
New Jersey, BOEMRE may proceed with the noncompetitive lease process 
pursuant to 30 CFR 285.232 of the Renewable Energy and Alternate Uses 
(REAU) of Existing Facilities on the OCS Final Rule for any area(s) 
where no competitive interest exists. If BOEMRE determines that there 
is competitive interest in some or all of this area offshore New 
Jersey, BOEMRE may proceed with Area Identification, as set forth in 30 
CFR 285.211(b), and the competitive leasing process set forth under 30 
CFR 285.211 through 285.225. Whether the leasing process would be 
competitive or noncompetitive, it would (1) include additional 
opportunities for the public to provide input; (2) be reviewed 
thoroughly for potential environmental and multiple use impacts; and 
(3) and be conducted in conformance with all applicable laws and 
regulations. The area that may be offered for lease, if any, has not 
been determined and may be reduced from the area identified in this 
Call.

Background

Energy Policy Act of 2005

    The EPAct amended the OCS Lands Act by adding subsection 
8(p)(1)(c), which authorizes the Secretary of the Interior to grant 
leases, easements, or rights-of-way (ROWs) on the OCS for activities 
that are not otherwise authorized by law and that produce or support 
production, transportation, or transmission of energy from sources 
other than oil or gas. The EPAct also required the issuance of 
regulations to carry out the new authority pertaining to renewable 
energy on the OCS. The Secretary delegated this authority to issue 
leases, easements, and ROWs, and to promulgate regulations to the 
Director of BOEMRE. On April 29, 2009, BOEMRE promulgated the REAU 
rule, which can be found at: http://www.boemre.gov/offshore/RenewableEnergy/PDF/FinalRenewableEnergyRule.pdf.

[[Page 22132]]

Interim Policy

    After the passage of EPAct, BOEMRE moved forward with allowing 
limited activities related to the development of renewable energy 
projects on the OCS while finalizing the REAU rulemaking. BOEMRE 
created and published an Interim Policy (IP) to allow the issuance of 
leases to assess the renewable energy resource potential on the OCS and 
evaluate new technology. The IP governed the issuance of leases for the 
installation of offshore data collection and technology testing 
facilities on the OCS until the promulgation of the REAU rule. Leases 
issued under the IP have terms of five years and do not permit the 
testing of wind turbine generators.
    The IP lease issuance process began on November 6, 2007, when 
BOEMRE published in the Federal Register a Request for Information and 
Nominations for IP leases. Subsequently, BOEMRE published a listing of 
the locations described in the responses to the Request for Information 
and Nominations in the Federal Register in order to determine if there 
was competitive interest in the proposed IP lease areas. After 
considering responses received to the second Federal Register notice, 
BOEMRE determined that there was no competitive interest in any of the 
proposed IP lease areas and decided to proceed with the noncompetitive 
leasing process for the IP leases. Six areas on the OCS ranging from 8 
to 21 nmi offshore of the coast of New Jersey were nominated by three 
developers. BOEMRE received applications for the construction of 
meteorological towers and other site assessment activities on the OCS 
for four of the six proposed lease areas from Deepwater Wind LLC (2 
lease areas), Bluewater Wind New Jersey Energy LLC and Fishermen's 
Energy of New Jersey (FERN). After a thorough environmental review, 
BOEMRE offered four leases in June 2009 and executed three IP leases 
offshore New Jersey, one to each of the three developers listed above, 
in November 2009. The specific locations of these IP leases are 
provided under the section entitled, ``Existing Interim Policy Leases 
Offshore New Jersey.'' The installation of meteorological towers or 
meteorological buoys is anticipated to begin in mid-2011.

Executive Order 13547: Stewardship of the Ocean, Our Coasts, and the 
Great Lakes

    On July 19, 2010, the President signed Executive Order 13547 
establishing a national ocean policy and the National Ocean Council (75 
FR 43023). The Order establishes a comprehensive, integrated national 
policy for the stewardship of the ocean, our coasts and the Great 
Lakes. Where BOEMRE actions affect the ocean, the Order requires BOEMRE 
to take such action as necessary to implement this policy, the 
stewardship principles and national priority objectives adopted by the 
Order, and guidance from the National Ocean Council.
    BOEMRE appreciates the importance of coordinating its planning 
endeavors with other OCS users and regulators and intends to follow 
principles of coastal and marine spatial planning, and coordinate with 
the regional planning bodies as established by the National Ocean 
Council to inform its leasing processes. BOEMRE anticipates that 
continued coordination with the State Renewable Energy Task Forces will 
help inform comprehensive coastal and marine spatial planning efforts.

Actions Taken by the State of New Jersey in Support of Renewable Energy 
Development

    BOEMRE recognizes the importance of the steps that the state of New 
Jersey has taken to encourage and incentivize offshore wind energy 
development. While a state may promote such development through 
activities such as the creation of financial incentives, it is 
important to note that an offshore wind project cannot be sited on the 
OCS without an OCS renewable energy lease issued by BOEMRE pursuant to 
30 CFR part 285, as described in this Call. Below is a description of 
the activities that the state has undertaken to support renewable 
energy development off its coast.
    In April 2006, the New Jersey Blue Ribbon Panel (BRP) on the 
Development of Wind Turbine Facilities in Coastal Waters issued a final 
report to the Governor. The BRP considered the need for offshore wind 
turbines to supply renewable energy to state consumers, and compared 
the potential from offshore wind power to other electric power sources, 
including fossil, nuclear and renewable fuels, as part of the state's 
long-term electricity needs. Recommendation (5) of the panel called for 
the New Jersey Board of Public Utilities (BPU) to proceed with a 
limited test project, not to exceed 350 megawatts (MW), to obtain 
practical knowledge of benefits and impacts resulting from offshore 
wind turbine facilities. The New Jersey BPU issued a request for 
proposals for the development of a 350 MW capacity wind power project 
on the OCS, and solicited interest in obtaining financial grants of up 
to $19 million from the state to support the financing of offshore wind 
power projects. Five proposals were submitted. In October 2008, the 
State of New Jersey selected Garden State Offshore Energy LLC (GSOE), a 
joint venture of Deepwater Wind LLC and Public Service Enterprise Group 
(PSEG), as the winner of the grant funds solicitation. However, to 
date, no contract for transferring the grant funds has been executed 
based on the solicitation. Rather, to encourage development necessary 
to achieve the Offshore Wind (OSW) goals in the State of New Jersey's 
2008 Energy Master Plan (EMP), the BPU reexamined the approach 
described above and instead designed a rebate program that could 
reimburse OSW developers for the costs associated with constructing 
meteorological towers on the OCS offshore New Jersey. This rebate 
program would provide financial incentives for multiple simultaneous 
projects on the OCS offshore New Jersey. The BPU authorized this rebate 
program on November 26, 2008. On January 8, 2009, the BPU issued an 
Order approving three rebate applications for offshore wind 
meteorological towers submitted by Bluewater Wind, GSOE, and FERN, 
which will allow these developers to recover costs associated with 
constructing meteorological towers on the OCS offshore New Jersey. On 
August 18, 2010, two of the rebate applications were modified by the 
BPU to grant rebates for the cost associated with construction of 
meteorological buoys instead of meteorological towers.
    The BRP also advised through recommendation (6) that the test 
project needed ``* * * to be preceded by scientific baseline studies 
that collect basic data about the existence, location and nature of New 
Jersey's offshore natural resources * * *'' Accordingly, recommendation 
(4) of the BRP called for the State to conduct baseline studies of New 
Jersey's coastal waters to, in part, develop spatial and temporal 
information regarding ocean uses and living natural resources and 
assess tourism and related economic sectors.
    To comply with the BRP's recommendations, the New Jersey Department 
of Environmental Protection (NJDEP) released a Solicitation for 
Research Proposals for Ocean/Wind Power Ecological Baseline Studies 
(OWPEBS). To meet the project goal, baseline data were collected on 
birds, sea turtles, and marine mammals during an 18-month period and 
later expanded to a 24-month period to fill major data gaps identified 
for each group. The final OWPEBS was published in July 2010

[[Page 22133]]

and is available at: http://www.nj.gov/dep/dsr/ocean-wind/report.htm.
    On August 18, 2010, Governor Christie signed the Offshore Wind 
Economic Development Act (Approved P.L.2010, c.57), which directs the 
BPU to establish an offshore wind renewable energy certificate (OREC) 
program. The OREC program requires that each electric power supplier 
and each basic generation service provider acquire a percentage of the 
kilowatt hours sold in New Jersey from offshore wind energy, such that 
at least 1,100 megawatts of generation from offshore wind projects will 
be supplied to state consumers. An entity seeking to construct an 
offshore wind project may submit an application to the Board for 
approval as a qualified offshore wind project eligible to earn ORECs. 
Financial assistance and tax credits, through the New Jersey Economic 
Development Authority (EDA), are also made available by the Act for 
businesses that construct manufacturing, assemblage, and water access 
facilities to support the development of qualified offshore wind 
projects in designated ``wind energy zones.'' (Reprint of Pub. L. 2010, 
c.57 available online at: http://www.njleg.state.nj.us/2010/Bills/PL10/57_.PDF).
    The ability of private developers to take advantage of these state 
incentives for potential projects on the OCS offshore New Jersey would 
be dependent on the developers obtaining leases and subsequent 
approvals from BOEMRE for their proposed projects on the OCS.

BOEMRE/New Jersey Renewable Energy Task Force

    BOEMRE formed the BOEMRE/New Jersey Renewable Energy Task Force for 
coordination among affected Federal agencies and state, local, and 
tribal governments throughout the leasing process. The BOEMRE/New 
Jersey Renewable Energy Task Force meeting materials are available on 
the BOEMRE Web site at: http://www.boemre.gov/offshore/RenewableEnergy/stateactivities.htm#NewJersey.

Secretary Salazar's ``Smart From the Start'' Atlantic Wind Initiative

    Secretary Ken Salazar announced the ``Smart from the Start'' OCS 
renewable energy initiative on November 23, 2010. The area delineated 
in this notice has been identified as a Wind Energy Area (WEA) as 
defined in BOEMRE's Notice of Intent to Prepare an Environmental 
Assessment for Mid-Atlantic Wind Energy Areas, 76 FR 7226 (February 9, 
2011), and described in the Secretary's announcement. Relevant 
materials are available on the BOEMRE Web site at: http://www.boemre.gov/offshore/RenewableEnergy/SmartFromTheStart.htm.
    A WEA is an OCS area that appears to be suitable for the 
consideration of wind energy development. The New Jersey WEA was 
delineated based on deliberation and consultation with the BOEMRE/New 
Jersey Renewable Energy Task Force and identified to be evaluated in a 
regional environmental assessment (EA). This regional EA will evaluate 
the environmental consequences associated with lease issuance and site 
assessment and site characterization activities in this WEA as well as 
WEAs offshore Delaware, Maryland, and Virginia. The borders of the New 
Jersey WEA may be adjusted in response to comments and information 
received during the Call comment period and the regional EA comment 
period. In addition, it may become appropriate to analyze one or more 
of the WEAs identified in the regional EA, including the WEA offshore 
New Jersey, in separate EAs.
    BOEMRE will conduct several interagency consultations concurrently 
with the National Environmental Policy Act (NEPA) process associated 
with the ``Smart from the Start'' initiative. These consultations 
include, but are not limited to, those required by the Coastal Zone 
Management Act (CZMA), Endangered Species Act (ESA), Magnuson-Stevens 
Fishery Conservation and Management Act, National Historic Preservation 
Act (NHPA), Marine Mammal Protection Act (MMPA), and Executive Order 
13175--``Consultation and Coordination with Tribal Governments.'' These 
consultations would take place before the issuance of any leases.
    If the regional EA finds that issuing leases in these areas and 
approving subsequent site assessment activities on these leases would 
constitute a major Federal action significantly affecting the quality 
of the human environment (42 U.S.C. 4332(c)), then BOEMRE would begin 
the process of preparing an environmental impact statement (EIS) to 
analyze the effects of lease issuance and site characterization and 
site assessment activities in those areas. If BOEMRE determines during 
the regional EA process that issuing leases and conducting site 
characterization and assessment activities in these WEAs would not 
result in significant environmental impacts, then BOEMRE would issue a 
Finding of No Significant Impact (FONSI). After either a FONSI is 
issued or the EIS process is completed, BOEMRE may issue one or more 
renewable energy leases in the WEAs in accordance with its 
determination of competitive interest, described in the following 
section of this Call. In the event that a particular lease is issued, 
and the lessee submits a Site Assessment Plan (SAP), BOEMRE will 
determine whether the regional EA adequately considers the 
environmental consequences of the activities proposed in the lessee's 
SAP. If the analysis in the regional EA adequately addresses these 
consequences, then no further NEPA would be required before the SAP is 
approved. If that analysis is inadequate, an additional NEPA analysis 
would be prepared before the SAP could be approved.
    If and when a lessee is ready to propose construction and 
operations of a specific renewable energy facility, it would submit a 
Construction and Operation Plan (COP). If a COP is submitted for a 
particular leasehold, a separate NEPA analysis would be prepared 
analyzing the environmental consequences of the specific project 
proposed. This would likely take the form of an EIS and will provide 
additional opportunities for public involvement. Pursuant to 30 CFR 
Part 285, a lessee may only submit a COP once it has gathered the 
necessary information through site characterization and site assessment 
activities. Such an EIS process would provide Federal officials and the 
public with comprehensive site- and project-specific information 
regarding potential environmental impacts of the project that the 
lessee is proposing. These potential impacts would be taken into 
account when deciding whether to approve, approve with modification, or 
disapprove the construction and operation of a commercial wind 
facility.

Determination of Competitive Interest

    The first step in determining whether there is no competitive 
interest in an area on the OCS for wind energy projects offshore New 
Jersey will be the evaluation of submissions describing nominations for 
particular areas of interest as suitable for commercial wind projects 
in response to this notice. At the conclusion of the comment period for 
this Call, BOEMRE will review the information received, undertake a 
completeness review and qualifications review of the nominations 
received, and make a determination as to whether competitive interest 
exists. BOEMRE will first determine whether there is any geographic 
overlap of the areas of interest.
    If two areas of interest fully or partially overlap, BOEMRE will 
continue to proceed with the competitive lease process as described

[[Page 22134]]

below. BOEMRE may consult with the BOEMRE/New Jersey Task Force 
throughout this process.
    Situations may arise in which several parties nominate project 
areas that do not overlap. Under these circumstances, BOEMRE could 
choose to employ an allocation system of leases that involves the 
creation of competition across tracts. This system is referred to as 
intertract competition and will also be implemented under the 
competitive process outlined in the REAU rule. BOEMRE may consult with 
the BOEMRE/New Jersey Task Force in determining intertract competition.

Competitive Leasing Process

    Following are the steps in the competitive process that would 
follow this Call, as described in 30 CFR 285.211 through 285.225:
    (1) Area Identification: BOEMRE would identify areas for 
environmental analysis and consideration for leasing in discussion with 
appropriate Federal agencies, states, local governments, tribes and 
other interested parties based on the information submitted in response 
to this notice and the Notice of Intent to Prepare an Environmental 
Assessment for Mid-Atlantic Wind Energy Areas, described above.
    (2) Proposed Sale Notice: BOEMRE would then publish the Proposed 
Sale Notice (PSN) in the Federal Register and send the PSN to any 
affected tribes, the State Historic Preservation Office, the Governor 
of any affected state and the executive of any local government that 
might be affected. The PSN would describe the areas offered for leasing 
and the proposed terms and conditions of a lease sale, including the 
proposed auction format, lease form and lease provisions. Additionally, 
the PSN would describe the criteria and process for evaluating bids. 
The PSN would be issued after completion of the final NEPA 
documentation, preparation of the Consistency Determination as required 
by the CZMA and its implementing regulations, and preparation of 
various analyses of proposed lease sale economic terms and conditions. 
The comment period following issuance of a PSN would be 60 days.
    (3) Final Sale Notice: BOEMRE would then publish the Final Sale 
Notice (FSN) in the Federal Register at least 30 days before the date 
of the sale. Should BOEMRE proceed with a competitive auction to award 
leases, BOEMRE would use one of the following four auction formats to 
select the winner as described at 30 CFR 285.220: multiple-factor 
bidding; sealed bidding; ascending bidding; or two-stage bidding (a 
combination of ascending bidding and sealed bidding). BOEMRE would 
publish the criteria for winning bid determinations in the FSN.
    (4) Bid Submission and Evaluation: Following publication of the FSN 
in the Federal Register, qualified bidders would be able to submit 
their bids to BOEMRE in accordance with procedures specified for the 
auction format to be used. The bids, including the bid deposits if 
applicable, would be checked for technical and legal adequacy. BOEMRE 
would evaluate the bids to determine if the bidder has complied with 
all applicable regulations. BOEMRE reserves the right to reject any or 
all bids and the right to withdraw an offer to lease an area from the 
sale.
    As stated above, BOEMRE may consider using the multiple-factor 
auction format in addition to the three other auction formats described 
at 30 CFR 285.220. If BOEMRE were to use a multiple-factor auction 
format, the evaluation of bids would be made by a panel composed of 
members selected by BOEMRE, and factors that BOEMRE may choose to 
include in the auction could be selected from a wide array of options. 
Factors that BOEMRE may consider for inclusion in this auction process 
are: Demonstration of prior diligence in the proposed Call area and in 
working with the state; lease revenues; technical merit; project 
experience; credit and security; power purchase arrangements; 
timeliness; financing and economics; environmental considerations; 
public benefits; and compatibility with state and local needs. Other 
factors based on the New Jersey Offshore Wind Economic Development Act 
may also receive consideration by BOEMRE. These factors would be 
identified in the FSN.
    If BOEMRE were to use a multiple-factor auction format, it is 
possible that a negotiation stage may be included in the bid assessment 
criteria, to be used if it becomes necessary to modify a proposal prior 
to acceptance. BOEMRE would coordinate with the State of New Jersey and 
other stakeholders, as appropriate, to establish procedures designed to 
assure the selection of the most worthy proposal that would provide a 
fair return to the United States pursuant to subsection 8(p) of the OCS 
Lands Act, as amended by Section 388 of the EPAct (43 U.S.C. 
1337(p)(3)).
    (5) Issuance of a Lease: Following the selection of a winning bid 
by BOEMRE, the submitter would be notified of the decision and provided 
a set of official lease forms for execution. The successful bidder 
would be required to execute the lease, pay the remainder of the bonus 
bid, if applicable, and file the required financial assurance within 10 
days of receiving the lease copies. Upon receipt of the required 
payments, financial assurance, and properly executed lease forms, 
BOEMRE would issue a lease to the successful bidder.

Noncompetitive Leasing Process

    If, after evaluating the responses to this notice, BOEMRE 
determines that there is no competitive interest in a proposed lease 
area, it may proceed with the noncompetitive lease issuance process 
pursuant to 30 CFR 285.232, consulting with the BOEMRE/New Jersey Task 
Force, as appropriate. BOEMRE would ask if the respondent wants to 
proceed with acquiring the lease, and if so, the respondent must submit 
an acquisition fee as specified within 30 CFR 285.502(a). After 
receiving the acquisition fee, BOEMRE would follow the process outlined 
in 30 CFR 285.231(b) through (i), which would entail publication of a 
Notice of Proposed Lease Area and Request for Competitive Interest 
(RFCI) for the proposed area considered for noncompetitive leasing. If 
the RFCI results in no indications of competitive interest, BOEMRE 
would publish a notice in the Federal Register announcing a 
determination of no competitive interest. Within 60 days of the date of 
that notice, the respondent would be required to submit a Site 
Assessment Plan (SAP), as described in 30 CFR 285.231(d)(2)(i).
    BOEMRE will comply with the requirements of NEPA, CZMA, ESA, NHPA, 
MMPA, and other applicable Federal statutes when in the process of 
issuing a lease noncompetitively. BOEMRE would coordinate and consult, 
as appropriate, with relevant Federal agencies, affected tribes, and 
affected state and local governments, in issuing a noncompetitive lease 
and developing lease terms and conditions.
    It is possible that responses to this notice may result in a 
determination that there is competitive interest for some areas but not 
for others. BOEMRE will announce publicly its determinations before 
proceeding with a competitive process, a noncompetitive process, or 
both.

Description of the Area

    The Call area offshore New Jersey contains 43 whole OCS blocks and 
34 partial blocks. The boundary begins 7 nmi from the shore and extends 
roughly 23 nmi seaward. It extends from southwest to northeast 
approximately 45 nmi between Avalon and Barnegat

[[Page 22135]]

Light. The entire area is approximately 418 square nautical miles.
    The following 43 full OCS blocks are included within the Call area: 
Wilmington NJ18-02 Blocks 6439, 6488, 6489, 6539, 6588, 6637, 6638, 
6687, 6688, 6689, 6736, 6737, 6738, 6739, 6740, 6786, 6787, 6788, 6789, 
6836, 6837, 6838, 6886, 6887, 6933, 6934, 6935, 6936, 6983, 6984, 6985, 
7032, 7033, 7034, 7080, 7081, 7082, 7083, 7131, 7132; Salisbury NJ18-05 
Blocks 6031, 6032, and 6081. In addition, parts of the following 34 OCS 
blocks are included within the area of interest: Wilmington NJ18-02 
Blocks 6389, 6438, 6589, 6636, 6639, 6735, 6784, 6785, 6790, 6833, 
6834, 6835, 6839, 6840, 6883, 6884, 6885, 6888, 6889, 6931, 6932, 6937, 
6938, 6982, 6986, 6987, 7030, 7031, 7035, 7036, 7084, 7085, 7133, and 
7134 as described in the table below.

                                   List of Partial OCS Blocks in the Call Area
----------------------------------------------------------------------------------------------------------------
         Protraction name              Protraction No.       Block No.                   Sub block
----------------------------------------------------------------------------------------------------------------
Wilmington........................  NJ18-02.............            6389  C, D, G, H, K, L, O, P
Wilmington........................  NJ18-02.............            6438  D, G, H, K, L, O, P
Wilmington........................  NJ18-02.............            6589  A, B, C, D, E, F, G, H, I, J, K, L, M,
                                                                           N
Wilmington........................  NJ18-02.............            6636  C, D, G, H
Wilmington........................  NJ18-02.............            6639  A, B, E, F, I, J, M, N, O, P
Wilmington........................  NJ18-02.............            6735  C, D, G, H, K, L, O, P
Wilmington........................  NJ18-02.............            6784  K, L, O, P
Wilmington........................  NJ18-02.............            6785  C, D, G, H, I, J, K, L, M, N, O, P
Wilmington........................  NJ18-02.............            6790  A, B, C, D, E, F, G, H, I, J, K, M, N
Wilmington........................  NJ18-02.............            6833  C, D, F, G, H, I, J, K, L, M, N, O, P
Wilmington........................  NJ18-02.............            6834  C, D, I, M, N
Wilmington........................  NJ18-02.............            6835  A, B, C, D, E, F, G, H, J, K, L, O, P
Wilmington........................  NJ18-02.............            6839  A, B, C, D, E, F, G, H, I, J, K, M, N
Wilmington........................  NJ18-02.............            6840  A
Wilmington........................  NJ18-02.............            6883  A, B, E, F, I, J, M, N
Wilmington........................  NJ18-02.............            6884  A, B, E, F, G, I, J, K, L, M, N, O, P
Wilmington........................  NJ18-02.............            6885  C, D, G, H, I, J, K, L, M, N, O, P
Wilmington........................  NJ18-02.............            6888  A, B, C, D, E, F, G, H, I, J, K, M, N,
                                                                           O
Wilmington........................  NJ18-02.............            6889  A
Wilmington........................  NJ18-02.............            6931  H, K, L, N, O, P
Wilmington........................  NJ18-02.............            6932  A, B, C, D, E, F, G, H
Wilmington........................  NJ18-02.............            6937  A, B, C, D, E, F, G, H, I, J, K, L, M,
                                                                           N, O
Wilmington........................  NJ18-02.............            6938  A, B, E
Wilmington........................  NJ18-02.............            6982  I, J, K, L, M, N, O, P
Wilmington........................  NJ18-02.............            6986  A, B, C, D, E, F, G, H, I, J, K, L, M,
                                                                           N, O
Wilmington........................  NJ18-02.............            6987  A, B, E
Wilmington........................  NJ18-02.............            7030  B, C, D, E, F, G, H, I, J, K, L, M, N,
                                                                           O, P
Wilmington........................  NJ18-02.............            7031  I, J, K, L, M, N, O, P
Wilmington........................  NJ18-02.............            7035  A, B, C, D, E, F, G, H, I, J, K, L, M,
                                                                           N, O
Wilmington........................  NJ18-02.............            7036  A, B, E
Wilmington........................  NJ18-02.............            7084  A, B, C, D, E, F, G, H, I, J, K, L, M,
                                                                           N, O
Wilmington........................  NJ18-02.............            7085  A, B, E
Wilmington........................  NJ18-02.............            7133  A, B, C, D, E, F, G, H, I, J, K, L, M,
                                                                           N, O
Wilmington........................  NJ18-02.............            7134  A, B, E
----------------------------------------------------------------------------------------------------------------

Map of the Call Area

    A map of the area and a table of the Call boundary coordinates in 
X, Y (eastings, northings) UTM Zone 18, NAD83 Datum and geographic X, Y 
(longitude, latitude), NAD83 Datum can be found at the following URL: 
http://www.boemre.gov/offshore/RenewableEnergy/stateactivities.htm#New 
Jersey. A large scale map of the Call area showing boundaries of the 
area with numbered blocks is available from BOEMRE at the following 
address: Bureau of Ocean Energy Management, Regulation and Enforcement, 
Office of Offshore Alternative Energy Programs, 381 Elden Street, Mail 
Stop 4090, Herndon, Virginia 20170, Phone: (703) 787-1300, Fax: (703) 
787-1708.

Development of the Call Area

    The Call area was delineated through consultation with the BOEMRE/
New Jersey Renewable Energy Task Force and is intended to provide for 
the protection of ecologically sensitive areas

[[Page 22136]]

and minimize user conflicts while making an appropriate area available 
for commercial offshore wind development. Specific mitigation, 
stipulations, or exclusion areas may be developed as a result of 
environmental reviews and associated consultations, as well as 
continued coordination through the BOEMRE/New Jersey Renewable Energy 
Task Force, and applied at the leasing and/or at the construction and 
operations stages. Issues raised through consultation with the BOEMRE/
New Jersey Task Force and areas where site-specific stipulations may be 
required, are described below.

Results of New Jersey's Ocean/Wind Power Ecological Baseline Studies

    The New Jersey WEA and Call area was developed using the boundary 
of New Jersey's Ocean/Wind Power Ecological Baseline Studies (OWPEBS) 
as a base. The results of the OWPEBS (http://www.nj.gov/dep/dsr/ocean-wind/report.htm) helped to identify areas that may not be suitable for 
development, based on features ranging from physical obstructions and 
usages to the presence and density of biological resources including 
avian populations and aquatic habitat. Areas that were removed from 
consideration include:
    <bullet> The northern portion of the OWPEBS area, which includes a 
major shipping lane and additional telecommunications cables. High bird 
densities are also present in this area due to a number of shoals and 
artificial underwater features, which have shown to be positively 
correlated with avian populations.
    <bullet> The southernmost section of the OWPEBS area where a large 
number of shoals and biological resources are concentrated (e.g. birds, 
marine mammals, sea turtles), which increases the area's sensitivity to 
development and includes Marine Protected Areas (MPAs) and Essential 
Fish Habitat (EFH).
    <bullet> The state boundary to 7 nmi line where the OWPEBS 
identified that avian density markedly decreased moving from inshore to 
offshore, with a steep decline observed at approximately 7 nmi. The 
area from the state boundary to the 7 nmi limit is excluded due to high 
avian densities, as well as for the numerous shipwrecks, reefs, and 
shoals that tend to occur in this zone, in addition to higher human 
activity from recreational and commercial vessels (e.g. the Tug Barge 
Transit Route roughly follows this 7 nmi line).
    Additional areas of exclusion were determined using the 
environmentally sensitive categories defined in the OWPEBS, which are 
listed below in order of priority. The areas removed from consideration 
from the area are primarily based on the first four categories.
    1. No Build Areas (i.e. shipping lanes, traffic separation schemes 
(TSS), pipelines and cables, artificial reefs, and shipwrecks)--
Development is excluded in blocks containing some of these features 
(e.g., shipping lanes) since they would directly and adversely affect 
shipping. Buffer areas may also be required to avoid impacts.
    2. Shoals--Should be avoided since they function as feeding grounds 
and nurseries for various pelagic and bottom-dwelling species, as well 
as serve as fishing/feeding hotspots for recreational and commercial 
fishermen, birds, sea turtles and marine mammals.
    3. High Avian Densities--Areas with high avian densities are mostly 
concentrated in state waters along the coast. However, some hotspots 
can be found offshore, usually associated with shoals or other unique 
bottom features and/or oceanographic dynamics. Adverse effects may 
occur due to the greater potential for in-flight mortality due to 
collisions with wind turbines, avoidance behaviors caused by the 
disturbance/presence of turbines and/or disturbance of bottom features.
    4. Distance from Shore--The results of the OWPEBS found that birds, 
certain marine mammals and other resources occur in higher densities 
closer to shore. As stated above, bird activity decreases markedly 
beyond 7 nmi from the coast. Therefore, some environmental impacts 
would generally be expected to be reduced with increasing distance from 
the shoreline.
    5. Fishing Hot Spots--Although usually associated with shoals, 
other natural and artificial bottom features can contribute to 
fisheries productivity, and should be avoided when possible.
    6. Marine Mammals and Sea Turtles--As shown in the OWPEBS, marine 
mammal and sea turtles densities are roughly evenly distributed 
throughout the study area, and low in number (with the exception of 
dolphins). However, marine mammal and sea turtle densities are often 
found to be higher near underwater features such as shoals and ridges.
    7. Essential Fish Habitat (EFH)--EFHs, although not well defined in 
the study area, are present for numerous fish species, and are known to 
use the area during all or some life stages. In some cases, EFHs in the 
Study Area overlap (especially in the South), increasing impact 
potential.
Traffic Separation Scheme
    The area analyzed in the OWPEBS encompassed a portion of the 
Traffic Separation Scheme (TSS) in the approaches to New York and a 
traditional transit route utilized by tugs and barge operators. Based 
on recommendations by the U.S. Coast Guard, and considering the lack of 
information currently available to assess vessel traffic types, 
densities, and routing direction of vessels leaving the TSS, BOEMRE 
determined that OCS blocks within and directly south of the TSS should 
not be included in the area identified in this notice. OCS blocks 
within one nautical mile of an identified traditional tug and barge 
transit route were also removed from consideration.
Department of Defense Activities
    The Department of Defense (DOD) conducts offshore testing, 
training, and operations on the OCS. The area was refined based on DOD 
assessments of compatibility between commercial offshore wind 
development and DOD testing, training and operations. OCS Blocks 
determined to be incompatible with these activities were removed from 
consideration.

Department of Defense Potential Stipulations

    BOEMRE is aware that portions of the area lie within OCS blocks 
where site specific conditions and stipulations may need to be 
developed to ensure that projects are compatible with DOD activities. 
The DOD may request site specific stipulations in the following 28 
whole lease blocks: Wilmington NJ18-02 Blocks 6638, 6688, 6689, 6737, 
6738, 6739, 6740, 6786, 6787, 6788, 6789, 6836, 6837, 6838, 6886, 6887, 
6934, 6935, 6936, 6983, 6984, 6985, 7032, 7033, 7034, 7081, 7082, and 
7083. In addition, parts of the following 34 blocks may require site 
specific stipulations: Wilmington NJ18-02 Blocks 6489, 6539, 6588, 
6589, 6637, 6639, 6687, 6736, 6785, 6790, 6835, 6839, 6840, 6884, 6885, 
6888, 6889, 6933, 6937, 6938, 6982, 6986, 6987, 7031, 7035, 7036, 7080, 
7084, 7085, 7131, 7132, 7133, 7134; and Salisbury NJ18-05 Block 6032 as 
described in the table below.

[[Page 22137]]



                          OCS Partial Blocks Subject to DOD Site Specific Stipulations
----------------------------------------------------------------------------------------------------------------
                                         Protraction
           Protraction name                  No.          Block No.                    Sub block
----------------------------------------------------------------------------------------------------------------
Wilmington...........................         NJ18-02            6489  H, L, O, P
Wilmington...........................         NJ18-02            6539  B, C, D, F, G, H, I, J, K, L, M, N, O, P
Wilmington...........................         NJ18-02            6588  D, G, H, J, K, L, N, O, P
Wilmington...........................         NJ18-02            6589  A, B, C, D, E, F, G, H, I, J, K, L, M, N
Wilmington...........................         NJ18-02            6637  L, O, P
Wilmington...........................         NJ18-02            6639  A, B, E, F, I, J, M, N, O, P
Wilmington...........................         NJ18-02            6687  B, C, D, F, G, H, I, J, K, L, M, N, O, P
Wilmington...........................         NJ18-02            6736  D, G, H, K, L, N, O, P
Wilmington...........................         NJ18-02            6785  L, O, P
Wilmington...........................         NJ18-02            6790  A, B, C, D, E, F, G, H, I, J, K, M, N
Wilmington...........................         NJ18-02            6835  C, D, F, G, H, J, K, L, O, P
Wilmington...........................         NJ18-02            6839  A, B, C, D, E, F, G, H, I, J, K, M, N
Wilmington...........................         NJ18-02            6840  A
Wilmington...........................         NJ18-02            6884  A, G, K, L, M, N, O, P
Wilmington...........................         NJ18-02            6885  C, D, G, H, I, J, K, L, M, N, O, P
Wilmington...........................         NJ18-02            6888  A, B, C, D, E, F, G, H, I, J, K, M, N, O
Wilmington...........................         NJ18-02            6889  A
Wilmington...........................         NJ18-02            6933  D, F, G, H, I, J, K, L, M, N, O, P
Wilmington...........................         NJ18-02            6937  A, B, C, D, E, F, G, H, I, J, K, L, M, N,
                                                                        O, P
Wilmington...........................         NJ18-02            6938  A, B, E
Wilmington...........................         NJ18-02            6982  I, J, K, L, M, N, O, P
Wilmington...........................         NJ18-02            6986  A, B, C, D, E, F, G, H, I, J, K, L, M, N,
                                                                        O
Wilmington...........................         NJ18-02            6987  A, B, E
Wilmington...........................         NJ18-02            7031  I, J, K, L, M, N, O, P
Wilmington...........................         NJ18-02            7035  A, B, C, D, E, F, G, H, I, J, K, L, M, N,
                                                                        O
Wilmington...........................         NJ18-02            7036  A, B, E
Wilmington...........................         NJ18-02            7080  C, D, G, H, L
Wilmington...........................         NJ18-02            7084  A, B, C, D, E, F, G, H, I, J, K, L, M, N,
                                                                        O
Wilmington...........................         NJ18-02            7085  A, B, E
Wilmington...........................         NJ18-02            7131  B, C, D, G, H, L
Wilmington...........................         NJ18-02            7132  A, B, C, D, E, F, G, H, I, J, K, L, N, O,
                                                                        P
Wilmington...........................         NJ18-02            7133  A, B, C D, E, F, G, H, I, J, K, L, M, N,
                                                                        O
Wilmington...........................         NJ18-02            7134  A, B, E
Salisbury............................         NJ18-05            6032  C, D, H
----------------------------------------------------------------------------------------------------------------

    These stipulations could include but may not be limited to: Hold 
and save harmless agreements; mandatory coordination with DOD on 
specified activities; restrictions on electro-magnetic emissions; and 
evacuation procedures from the lease area for safety reasons when 
notified by the DOD.

Existing Interim Policy Leases Offshore New Jersey

    On November 1, 2009, BOEMRE executed three IP leases within the 
Call area, which, pending submittal of an adequate project plan, 
authorize the construction, installation, and operation of 
meteorological towers or buoys for a term of five years, to three 
developers offshore New Jersey. The location of each lease, the name of 
lease holder and the lease number are listed below.

                                                        Interim Policy Leases Offshore New Jersey
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                         Protraction
           Protraction name                  No.          Block No.                  Sub block                       Lease holder            Lease No.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Wilmington...........................         NJ18-02            6931  H, K, L, N, O, P.....................  Fishermen's Energy of New       OCS-A-0473
                                                                                                               Jersey LLC.
Wilmington...........................         NJ18-02            6936  .....................................  Bluewater Wind New Jersey       OCS-A-0475
                                                                                                               Energy LLC.
Wilmington...........................         NJ18-02            7033  .....................................  Deepwater Wind LLC........      OCS-A-0472
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 22138]]

    These leases do not confer a right to develop a commercial offshore 
wind project. Rather, the leases grant the exclusive right, pending 
submittal of an adequate project plan, to conduct the activities 
authorized by their lease, which are limited to installing and 
operating facilities to characterize wind and environmental resources. 
The installation of meteorological towers or meteorological buoys on 
those leases is anticipated to begin in mid-2011 with lease expiration 
on November 1, 2014. Applicants should be aware that while an IP lease 
area can be nominated for commercial development, the IP lease holder's 
rights are preserved until the lease's expiration date. Electronic 
copies of the executed lease can be found at: http://www.boemre.gov/offshore/RenewableEnergy/Projects.htm

Required Nomination Information

    If you intend to submit a nomination for a commercial lease from 
BOEMRE for the development of wind resources in the area(s) identified 
in this notice, you must provide the following:
    (1) The BOEMRE Protraction name, number, and specific whole or 
partial OCS blocks or sub-blocks within the Call area that are of 
interest for commercial wind leasing, including any required buffer 
area. If your proposed project area includes one or more partial blocks 
please describe those partial blocks in terms of a sixteenth (i.e. sub-
block) of an OCS block. Note that any nomination identifying areas 
greater than what would be reasonably necessary to develop a proposed 
commercial wind facility may not be considered as a valid nomination. 
In addition, BOEMRE will not consider any areas outside of the Call 
area in this process;
    (2) A description of your objectives and the facilities that you 
would use to achieve those objectives, including: devices and 
infrastructure involved; anticipated power production and likely 
purchasers; a statement that the proposed activity conforms with state 
and local energy planning requirements, initiatives or guidance, as 
applicable;
    (3) A schedule of proposed activities, including those leading to 
commercial operations;
    (4) Available and pertinent data and information concerning 
renewable energy resources and environmental conditions in the Call 
area, including energy and resource data and information used to 
evaluate the Call area; and
    (5) Documentation demonstrating that you are qualified to hold a 
lease as set forth in 30 CFR 285.107, including documentation 
demonstrating that you are technically and financially capable of 
constructing, operating, maintaining, and decommissioning the 
facilities described in (2) above. Guidance and examples of the 
appropriate documentation demonstrating your legal qualifications can 
be found in Chapter 2 and Appendix B of the BOMRE Renewable Energy 
Framework Guide Book available at: http://www.boemre.gov/offshore/RenewableEnergy/PDFs/REnGuidebook_ 03August2009_3_.pdf.
    Guidance regarding how you may demonstrate your technical and 
financial qualifications can be found at: http://www.boemre.gov/offshore/RenewableEnergy/RegulatoryInformation.htm. Documentation you 
submit to demonstrate your legal, technical, and financial 
qualifications need to be provided to BOEMRE in both paper and 
electronic formats. BOEMRE considers an Adobe.pdf file stored on a 
compact disc (CD) to be an acceptable format for submitting an 
electronic copy.
    It is critical that you submit a complete nomination so that BOEMRE 
may proceed with the commercial wind leasing process offshore New 
Jersey in a timely manner. If BOEMRE reviews your nomination and 
determines that it is incomplete, BOEMRE will inform you of this 
determination in writing. This letter will describe the information 
that BOEMRE determined to be missing from your nomination, and that you 
must submit in order for BOEMRE to deem your submission complete. You 
will be given 15 business days from the date of the letter to submit 
the information that BOEMRE found to be missing from your original 
submission. If you do not meet this deadline, or if BOEMRE determines 
this second submittal to be insufficient as well, then BOEMRE retains 
the right to deem your nomination invalid. In that case, BOEMRE would 
not continue processing your nomination submitted in response to this 
Call.
    Note that the 15 business day compliance period referenced in the 
paragraph above does not apply to the process to legally qualify your 
company to hold an OCS renewable energy lease. BOEMRE will make a 
separate determination regarding whether the information you have 
submitted is sufficient for BOEMRE to determine whether you are legally 
qualified to hold a renewable energy lease. The 15 business day 
compliance period referenced in the paragraph above applies to the 
remainder of your documentation required under 1-5 above, including the 
information you should submit in order to demonstrate your technical 
and financial capability to construct, operate, maintain, and 
decommission your proposed facilities.

Requested Information From Interested or Affected Parties

    BOEMRE is requesting specific and detailed comments describing the 
following conditions in the area identified:
    (1) Geological conditions (including bottom and shallow hazards);
    (2) Archeological and cultural resource sites on the seabed or 
nearshore;
    (3) Historic properties potentially affected by commercial wind 
development in the area identified in this Call;
    (4) Multiple uses of the area, including navigation (in particular, 
commercial and recreational vessel use), recreation, and fisheries 
(commercial and recreational);
    (5) Other relevant socioeconomic, biological, and environmental 
information.

Protection of Privileged or Confidential Information

Freedom of Information Act

    BOEMRE will protect privileged or confidential information that you 
submit as required by the Freedom of Information Act (FOIA). Exemption 
4 of FOIA applies to trade secrets and commercial or financial 
information that you submit that is privileged or confidential. If you 
wish to protect the confidentiality of such information, clearly mark 
it and request that BOEMRE treat it as confidential. BOEMRE will not 
disclose such information, subject to the requirements of FOIA. Please 
label privileged or confidential information ``Contains Confidential 
Information'' and consider submitting such information as a separate 
attachment.
    However, BOEMRE will not treat as confidential any aggregate 
summaries of such information or comments not containing such 
information. Additionally, BOEMRE will not treat as confidential (1) 
the legal title of the nominating entity (for example, the name of your 
company), or (2) the list of whole or partial blocks that you are 
nominating. Finally, information that is not labeled as privileged or 
confidential will be regarded by BOEMRE as suitable for public release.

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

    BOEMRE is required, after consultation with the Secretary, to 
withhold the location, character, or ownership of historic resources if 
it

[[Page 22139]]

determines that disclosure may, among other things, risk harm to the 
historic resources or impede the use of a traditional religious site by 
practitioners. Tribal entities should designate information that falls 
under Section 304 of NHPA as confidential.

    Dated: April 11, 2011.
Michael R. Bromwich,
Director, Bureau of Ocean Energy Management, Regulation and 
Enforcement.
[FR Doc. 2011-9545 Filed 4-19-11; 8:45 am]
BILLING CODE 4310-MR-P