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[Federal Register: November 9, 2010 (Volume 75, Number 216)]
[Notices]               
[Page 68824-68828]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09no10-85]                         

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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management, Regulation and Enforcement

[Docket No. BOEM-2010-0038]

 
Commercial Leasing for Wind Power on the Outer Continental Shelf 
(OCS) Offshore Maryland--Request for Interest (RFI)

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

ACTION: RFI in Commercial Wind Energy Leasing Offshore Maryland, and 
Invitation for Comments from Interested and Affected Parties.

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SUMMARY: The Bureau of Ocean Energy Management, Regulation and 
Enforcement (BOEMRE) invites submissions describing interest in 
obtaining one or more commercial leases for the construction of a wind 
energy project(s) on the Outer Continental Shelf (OCS) offshore 
Maryland. The BOEMRE will use responses to this RFI to enable BOEMRE to 
gauge specific interest in commercial development of OCS wind resources 
in the area described, as required by 43 U.S.C. 1337(p)(3). Parties 
wishing to obtain a commercial lease for a wind energy project should 
submit detailed and specific information as described below in the 
section entitled, ``Required Indication of Interest Information.'' 
Also, with this announcement the BOEMRE invites all interested and 
affected parties to comment and provide information--including 
information on environmental issues and concerns--that will be useful 
in the consideration of the RFI area for commercial wind energy leases.
    This RFI is published pursuant to subsection 8(p) of the OCS Lands 
Act, as amended 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 Western edge of the RFI area is located approximately 10 
nautical miles from the Ocean City, Maryland coast and the Eastern edge 
is approximately 27 nautical miles from the Ocean City, Maryland coast. 
This area was delineated in consultation with the BOEMRE Maryland 
Renewable Energy Task Force. A detailed description of the RFI area is 
found later in this notice.

DATES: The BOEMRE must receive your submission indicating your interest 
in this potential commercial leasing area no later than January 10, 
2011 for your submission to be considered. The BOEMRE requests comments 
or other submissions of information by this same date. We will consider 
only the submissions we receive by that time.
    Submission Procedures: You may submit your indications of interest, 
comments, and information by one of two methods:
    1. Electronically: http://www.regulations.gov. In the entry titled 
``Enter Keyword or ID,'' enter BOEM-2010-0038, then click search. 
Follow the instructions to submit public comments and view supporting 
and related materials available for this rulemaking. The BOEMRE will 
post all comments.
    2. By mail, sending your indications of interest, 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.

[[Page 68825]]

FOR FURTHER INFORMATION CONTACT: Aditi Mirani, Renewable Energy Program 
Specialist, Bureau of Ocean Energy Management, Regulation and 
Enforcement, Office of Offshore Alternative Energy Programs, 381 Elden 
Street, Mail Stop 4090, Herndon, Virginia 20170-4817; telephone (703) 
787-1752.

SUPPLEMENTARY INFORMATION: 

Purpose of the Request for Interest

    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)). This RFI is a preliminary step in the 
leasing process and the responses to it will assist BOEMRE in 
determining if there is competitive interest in the area described 
herein on the OCS offshore Maryland. If, following this RFI, BOEMRE 
determines that there is no competitive interest in this area offshore 
Maryland, BOEMRE may proceed with the noncompetitive leasing process 
pursuant to 30 CFR 285.232 of the Renewable Energy and Alternate Uses 
of Existing Facilities on the Outer Continental Shelf (REAU) rule. If, 
following this RFI, BOEMRE determines that there is competitive 
interest in the RFI area, BOEMRE may proceed with the competitive 
leasing process set forth under 30 CFR 285.211 through 285.225. Whether 
the leasing process is competitive or noncompetitive, it will include 
opportunities for the public to provide input as well as a thorough 
environmental review, and will be conducted in conformance with all 
applicable laws and regulations.
    Parties other than those interested in obtaining a commercial lease 
are welcome to submit comments in response to this RFI. Further, BOEMRE 
has formed the BOEMRE Maryland Renewable Energy Task Force for 
coordination among affected Federal agencies and State, local, and 
Tribal governments throughout the leasing process. Task Force meeting 
materials are available on the BOEMRE Web site at: http://www.BOEMRE.gov/offshore/RenewableEnergy/stateactivities.htm#Maryland.

Background

Energy Policy Act of 2005

    The EPAct amended the OCS Lands Act by adding subsection 8(p), 
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 the 
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. The BOEMRE published the REAU rule on April 29, 
2009 (74 FR 81 April, 29, 2009).

Determination of Competitive Interest

    The first step in determining whether there is competitive interest 
in an area for offshore wind energy projects will be the evaluation of 
submissions describing nominations of particular areas of interest as 
suitable for renewable energy projects in response to this RFI. At the 
conclusion of the comment period for this RFI, the BOEMRE will review 
the information received, undertake a completeness review and 
qualifications review of the nominations received and make a 
determination of competitive interest.
    The BOEMRE will first determine whether there is any geographic 
overlap of any nominated areas of interest. If two areas of interest 
fully or partially overlap, the competitive process will begin as 
outlined in 30 CFR 285.211 through 285.225.
    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 
competition across tracts. This system is referred to as intertract 
competition and will also be implemented under the competitive process 
outlined in 30 CFR 285.211 through 285.225. The BOEMRE may consult with 
the BOEMRE Maryland Renewable Energy Task Force in determining 
intertract competition.

Competitive Process

    If BOEMRE determines that competitive interest exists for this 
area, it would proceed with the following defined process, as described 
in 30 CFR 285.211 through 285.225, consulting with the BOEMRE Maryland 
Renewable Energy Task Force as appropriate:
    (1) Call for Information and Nominations (Call). The BOEMRE would 
publish in the Federal Register a notice of a Call for Information and 
Nominations for leasing in specified areas. The comment period 
following the notice of a Call would be 45 days. In the notice, BOEMRE 
may request comments seeking information on areas that should receive 
special consideration and analysis; on geological conditions (including 
bottom hazards); on archaeological sites on the seabed or nearshore; on 
possible multiple uses of the proposed leasing area (including 
navigation, recreation, and fisheries); and on other socioeconomic, 
biological, and environmental matters.
    In response to the Call, the BOEMRE would require potential lessees 
to submit the following information: the area of interest for a 
possible lease; a general description of the potential lessee's 
objectives and the facilities that the potential lessee would use to 
achieve those objectives; a general schedule of proposed activities, 
including those leading to commercial operations; data and information 
concerning renewable energy and environmental conditions in the area of 
interest, including the energy and resource data and information that 
was used to evaluate the area of interest; and documentation showing 
that the submitting entity is qualified to hold a lease. However, an 
applicant would not be required to resubmit information already 
submitted in response to this RFI.
    (2) Area Identification. The BOEMRE would identify areas for 
environmental analysis and consideration for leasing in discussion with 
appropriate Federal agencies, States, local governments, Indian Tribes, 
and other interested parties based on the information submitted in 
response to this RFI and the Call.
    (3) Proposed Sale Notice. The BOEMRE would then publish a Proposed 
Sale Notice (PSN) in the Federal Register and send the PSN to 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 National Environmental Policy Act (NEPA) documentation, 
preparation of the Consistency Determination as required by the Coastal 
Zone Management Act (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.
    (4) Final Sale Notice. The 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,

[[Page 68826]]

BOEMRE would use one of the following three auction formats to select 
the winner as described at 30 CFR 285.220: sealed bidding; ascending 
bidding; or two-stage bidding (a combination of ascending bidding and 
sealed bidding). The BOEMRE would publish the criteria for winning bid 
determinations in the FSN.
    (5) Bid Evaluation. Following publication of the FSN in the Federal 
Register, qualified bidders may 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. The BOEMRE would evaluate the bids to 
determine if the bidder has complied with all applicable regulations. 
The BOEMRE reserves the right to reject any or all bids and the right 
to withdraw an offer to lease an area from the sale.
    (6) Issuance of a Lease. Following the selection of a winning bid 
by the 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 Process

    If BOEMRE determines that there is no competitive interest in a 
proposed lease, it may proceed with the noncompetitive lease issuance 
process, pursuant to 30 CFR 285.232, consulting with the BOEMRE 
Maryland Renewable Energy Task Force as appropriate. Within 60 days of 
the date of a determination of no competitive interest, the respondent 
would be required to submit a Site Assessment Plan (SAP), as described 
in CFR 285.231(d)(2)(i).
    Leases issued noncompetitively must comply with the requirements of 
NEPA, CZMA, the Endangered Species Act (ESA), and other applicable 
Federal statutes. In accordance with 30 CFR 285.231(e), BOEMRE would 
coordinate and consult, as appropriate, with affected Federal agencies, 
State and local governments, and affected Indian Tribes in issuing a 
noncompetitive lease and developing lease terms and conditions.
    It is possible that responses to this RFI may result in 
determinations that there is competitive interest for some areas but 
not for others. The BOEMRE will announce publicly its determinations 
before proceeding with a competitive process, a noncompetitive process, 
or both.

Environmental Review

    BOEMRE will conduct environmental reviews of its leasing and 
development decisions pursuant to NEPA, ESA and other environmental 
statutes, as appropriate. Should BOEMRE determine that any activity it 
is considering authorizing constitutes a major Federal action 
significantly affecting the environment, BOEMRE would prepare an 
environmental impact statement (EIS) to analyze the effects of such an 
action. This would include a public scoping period, including a 30-day 
comment period and one or more public meetings conducted to solicit 
input on the alternatives and issues to be addressed in a draft EIS. 
The draft EIS would describe the nature of the action under 
consideration, and any potential direct, indirect, and cumulative 
impacts that the action will have on biological or physical resources, 
as well as on socioeconomic conditions. During this process, BOEMRE 
would review pertinent published and unpublished studies from academic 
and other institutions and organizations and from other Federal and 
State agencies. Upon completion of a draft EIS, BOEMRE would file the 
draft EIS with the Environmental Protection Agency (EPA) and would 
publish a Notice of Availability in the Federal Register. The draft EIS 
would be made available and distributed for public review and comment 
during a minimum 45-day public comment period.
    The BOEMRE would hold one or more public hearings in the vicinity 
of the proposed lease area for the purpose of receiving comments on the 
draft EIS. The BOEMRE would announce the time and location in the 
Federal Register at least 30 days before the public hearings.
    The BOEMRE would analyze the comments and information received 
during the public review process, including those from public hearings, 
along with any newly acquired information and, where appropriate, would 
incorporate this information into the final EIS. Based on the NEPA 
analysis, results of the consultations, and comments received, the 
BOEMRE would develop lease terms or stipulations to protect sensitive 
areas and/or biological and cultural resources. After the public 
hearings, BOEMRE would develop a final EIS. The BOEMRE would file the 
final EIS with EPA and publish a Notice of Availability in the Federal 
Register.

Description of the Area

    The RFI area was delineated through consultation with the BOEMRE 
Maryland Renewable Energy Task Force. The following full OCS lease 
blocks are included within the RFI area: Salisbury NJ18-05 Blocks 6624, 
6625, 6626, 6627, 6628, 6629, 6674, 6675, 6676, 6677, 6678, 6679, 6724, 
6725, 6726, 6727, 6728, 6729, 6774, 6775, 6776, 6777, 6778, 6779, 6825, 
6826, 6827, 6828, 6829. In addition, parts of the following blocks are 
included within the area of interest: Salisbury NJ18-05 Blocks 6623, 
6673, 6723 and 6773 as described in the table below.

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           Protraction name               Protraction number      Block number              Sub block
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Salisbury............................  NJ18-05.................            6623  C,D,G,H,K,L,O,P
Salisbury............................  NJ18-05.................            6673  C,D,G,H,K,L,O,P
Salisbury............................  NJ18-05.................            6723  C,D,G,H,K,L,O,P
Salisbury............................  NJ18-05.................            6773  C,D,G,H
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    The Western edge of the RFI is approximately 10 nautical miles from 
the Ocean City, Maryland coast, and the Eastern edge is approximately 
27 nautical miles from the Ocean City, Maryland coast. The longest 
portion of the North/South portion is approximately 13 nautical miles 
in length and the longest portion of the East/West portion is 
approximately 17 nautical miles in length. The area is made up of 
straight lines that are comprised of 29 whole OCS blocks, 3 half blocks 
and 1 quarter block. The entire area is approximately 206.55 square 
nautical miles; 175,069.22 acres; or 70848 hectares.
    The boundary of the RFI follows the points listed in the table 
below in clockwise order. Point numbers 1 and 9 are the same. 
Coordinates are provided in X, Y (eastings, northings) UTM Zone

[[Page 68827]]

18N, NAD 83 and geographic (longitude, latitude), NAD83.

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                    Point No.                      X  (easting)    Y  (northing)     Longitude       Latitude
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1...............................................          512000         4257600     -74.8624454      38.4666335
2...............................................          543200         4257600     -74.5048114      38.4656677
3...............................................          543200         4233600     -74.5062825      38.2493794
4...............................................          519200         4233600     -74.7805670      38.2502128
5...............................................          519200         4238400     -74.7804368      38.2934724
6...............................................          514400         4238400     -74.8353273      38.2935622
7...............................................          514400         4240800     -74.8352784      38.3151920
8...............................................          512000         4240800     -74.8627320      38.3152273
9...............................................          512000         4257600     -74.8624454      38.4666335
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    Specific mitigation, stipulations, or exclusion areas may be 
developed as a result of site specific environmental reviews and 
associated consultations, as well as continued coordination through the 
BOEMRE Maryland Renewable Energy Task Force. At this point, for the 
area under consideration, multiple use conflicts may result in 
requiring mitigation or excluding certain OCS blocks or portions of OCS 
blocks. Multiple use issues associated with Department of Defense 
activities and U.S. Coast Guard responsibilities were raised at the 
BOEMRE Maryland Renewable Energy Task Force meetings. These are 
described below.

Traffic Separation Scheme (TSS) and Navigational Issues

    The BOEMRE is aware that the RFI area lies adjacent or in close 
proximity to a Traffic Separation Scheme (TSS) and thus the areas 
nominated in response to this RFI may need to be modified. The U.S. 
Coast Guard will require buffers from the edges of a TSS and from the 
entrance and exit to a TSS. Because proposed project characteristics 
will be unique to each individual project, the buffers will be further 
defined as more information is collected, such as vessel traffic types, 
density and routing direction. Further, it is important to note that 
two-way routes, fairways and TSSs are various forms of routing measures 
and that buffer dimensions will vary because of many factors, one of 
which is vessel traffic density/composition and rules-of-the-road 
protocol.
    The BOEMRE will take into consideration and review data including 
but not limited to Automatic Identification System (AIS) data that is 
used on ships and vessel traffic services. The BOEMRE will also consult 
with relevant agencies such as the U.S. Coast Guard regarding potential 
issues concerning the TSS and other navigational and safety issues and 
will use best management practices. Depending on the findings, BOEMRE 
and the U.S. Coast Guard will develop reasonable and appropriate 
mitigations such as conditions on turbine placement, preservation of 
adequate navigation buffers and setbacks, protection of vessel traffic 
lanes or other operational restrictions utilizing their existing 
authorities, policies, and procedures.
    If such mitigation cannot be achieved, portions of certain 
nominated areas may need to be excluded. The following blocks are 
highlighted for consideration of U.S. Coast Guard concerns: 6625, 6626, 
6627, 6628, 6629, 6675, 6676, 6677, 6678, 6679, 6726, 6727, 6728, 6729, 
6776, 6777, 6778, 6779, 6826, 6827, 6828, and 6829.

Department of Defense Activities and Stipulations

    The Department of Defense conducts offshore testing, training, and 
operations in the RFI area. The BOEMRE will consult with the Department 
of Defense regarding potential issues concerning offshore testing, 
training, and operational activities, and will use best management 
practices to develop appropriate stipulations to mitigate the effects 
of wind turbines in the RFI area. The Department of Defense will 
request site specific stipulations in the following 23 lease blocks: 
6624, 6625, 6626, 6627, 6628, 6629, 6674, 6675, 6676, 6677, 6678, 6724, 
6725, 6726, 6727, 6728, 6774, 6775, 6776, 6777, 6825, 6826, 6827, and 
the following four partial lease blocks: 6623, 6673, 6723, and 6773.

Map of RFI area

    A map of the RFI area can be found at the following URL: http://www.BOEMRE.gov/offshore/RenewableEnergy/stateactivities.htm#Maryland.
    A large-scale map of the RFI area showing boundaries of the RFI 
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.

Required Indication of Interest Information

    If you intend to submit an indication of interest in a commercial 
lease from BOEMRE for the development of wind resources in the area(s) 
identified in this RFI, you must provide the following:
    (1) The BOEMRE Protraction name, number, and specific whole or 
partial OCS blocks or areas within the RFI area that are of interest 
for commercial development, 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 of an OCS block. 
Note that any indications of interest identifying areas greater than 
what would be reasonably necessary to develop a proposed commercial 
wind facility will not be considered as valid indications of interest. 
In addition, BOEMRE will not consider any areas outside of the RFI area 
in this process;
    (2) A description of your objectives and the facilities that you 
would use to achieve those objectives;
    (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 RFI 
area, including energy and resource data and information used to 
evaluate the RFI area;
    (5) Documentation demonstrating that you are legally, technically 
and financially qualified to hold a lease as set forth in 30 CFR 
285.106 and 285.107. Your technical and financial documentation should 
demonstrate that you are capable of constructing, operating, 
maintaining, and decommissioning the facilities described in (2) above. 
Documentation of financial qualification may include

[[Page 68828]]

information establishing access to sufficient capital to carry out 
development. Examples of documentation of technical qualification may 
include evidence of international or domestic experience with renewable 
energy projects or other types of electric-energy-related projects.
    It is critical that you submit a complete indication of interest so 
that BOEMRE may proceed with the commercial wind leasing process 
offshore Maryland in a timely manner. If BOEMRE reviews your indication 
of interest 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 indication 
of interest, 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 indication of interest 
invalid. In that case, BOEMRE would not move forward with your 
indication of interest submitted in response to this RFI.

Privileged or Confidential Information

    The 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 the BOEMRE treat it as 
confidential. The 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.

    Dated: October 25, 2010.
Michael R. Bromwich,
Director, Bureau of Ocean Energy Management, Regulation and 
Enforcement.
[FR Doc. 2010-28269 Filed 11-8-10; 8:45 am]
BILLING CODE 4310-MR-P
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