Federal Register / Vol. 87, No. 104 / Tuesday, May 31, 2022 / Notices 32443 

most of these burials are secondary 

interments, which according to him 

explains the incomplete nature of the 

human remains. Based on archeological 

information, these human remains are 

Native American. Herbert Kraft 

identified the human remains and 

associated funerary objects as 

‘‘Middlesex’’ and ‘‘Adena-like’’ in an 

article he published in 1976, and as 

‘‘Adena Middlesex’’ in the Seton Hall 

University’s accession records. 

At an unknown date likely between 

1950 and 1970, human remains 

representing, at minimum, one 

individual were removed from 

Mashipacong Island in Sussex County, 

NJ. The human remains were collected 

by Philip Launer and donated to Seton 

Hall University in 1988. The human 

remains belong to an individual of 

unknown age and sex. No known 

individual was identified. No associated 

funerary objects are present. 

Herbert Kraft’s 1985 archaeological 

survey of Mashipacong Island notes that 

the artifacts found on different parts of 

the island show that it was inhabited in 

the Archaic and Woodland periods. 

These human remains are believed to be 

Native American based on geographical 

information and because Launer focused 

exclusively on Native American 

archeology. 

At an unknown date likely between 

1940 and 1960, human remains 

representing, at minimum, one 

individual were removed from Skunk 

Run in Sussex County, NJ. According to 

a 1960 report by Philip Launer 

published in the Bulletin of the 

Archaeological Society of New Jersey, 

‘‘on the upper terrace, a single burial 

with no grave goods was shattered by 

Mr. Mettler’s plow. The plow-shattered 

bones were collected (. . .)’’ and saved 

by Launer until they were donated to 

Seton Hall University in 1988. In 2015, 

the University’s archeological collection 

was transferred to the Walsh Gallery. 

The human remains belong to an 

individual of unknown age and sex. No 

known individual was identified. No 

associated funerary objects are present. 

The Skunk Run site is believed to be 

pre-contact in date. Point types 

collected by Launer suggest the site was 

inhabited in the Late Archaic to Middle 

Woodland periods. Launer believed the 

site was inhabited mostly in the Archaic 

period, but no date for the human 

remains was ever recorded in the 

University’s records. The human 

remains were determined to be Native 

American based on geographical 

information. 

Between 1955 and 1958, human 

remains representing, at minimum, one 

individual were removed by unknown 

individuals and under unknown 

circumstances from a site near Port 

Jervis in Orange, NY. In 1981, these 

human remains were donated to Seton 

Hall University, and in 2015, the 

University’s archeological collection 

was transferred to the Walsh Gallery. 

The human remains belong to an 

individual of unknown age and sex. No 

known individual was identified. No 

associated funerary objects are present. 

The human remains were determined to 

be Native American based on 

geographical information. 

Determinations Made by the Walsh 

Gallery, Seton Hall University 

Officials of the Walsh Gallery, Seton 

Hall University have determined that: 

• Pursuant to 25 U.S.C. 3001(9), the 

human remains described in this notice 

represent the physical remains of 20 

individuals of Native American 

ancestry. 

• Pursuant to 25 U.S.C. 3001(3)(A), 

the 1,029 objects described in this 

notice are reasonably believed to have 

been placed with or near individual 

human remains at the time of death or 

later as part of the death rite or 

ceremony. 

• Pursuant to 25 U.S.C. 3001(2), there 

is a relationship of shared group 

identity that can be reasonably traced 

between the Native American human 

remains and associated funerary objects 

and The Tribes. 

Additional Requestors and Disposition 

Lineal descendants or representatives 

of any Indian Tribe or Native Hawaiian 

organization not identified in this notice 

that wish to request transfer of control 

of these human remains and associated 

funerary objects should submit a written 

request with information in support of 

the request to Laura Hapke, Walsh 

Gallery, University Libraries, Seton Hall 

University, 400 South Orange Avenue, 

South Orange, NJ 07079, telephone 973– 

275–2165, email laura.hapke@shu.edu, 

by June 30, 2022. After that date, if no 

additional requestors have come 

forward, transfer of control of the 

human remains and associated funerary 

objects to The Tribes may proceed. 

The Walsh Gallery, Seton Hall 

University is responsible for notifying 

The Tribes that this notice has been 

published. 

Dated: May 25, 2022. 

Melanie O’Brien, 

Manager, National NAGPRA Program. 

[FR Doc. 2022–11638 Filed 5–27–22; 8:45 am] 

BILLING CODE 4312–52–P 

DEPARTMENT OF THE INTERIOR 

Bureau of Ocean Energy Management 

[Docket No. BOEM–2022–0017] 

Pacific Wind Lease Sale 1 (PACW–1) 

for Commercial Leasing for Wind 

Power on the Outer Continental Shelf 

in California—Proposed Sale Notice 

AGENCY: Bureau of Ocean Energy 

Management, Interior. 

ACTION: Proposed sale notice; request for 

comments. 

SUMMARY: This document is the 

proposed sale notice (PSN) for the sale 

of commercial wind energy leases on 

the Outer Continental Shelf (OCS) in the 

Humboldt Wind Energy Area (WEA) 

and Morro Bay WEA offshore California. 

The Bureau of Ocean Energy 

Management (BOEM) proposes to offer 

multiple lease areas (Lease Areas) for 

sale in each WEA and to conduct 

simultaneous auctions for Lease Areas 

within each WEA using a multiplefactor bidding auction format. The PSN 

contains information pertaining to the 

areas available for leasing, certain 

provisions and conditions of the lease, 

auction details, lease forms, criteria for 

evaluating competing bids, award 

procedures, appeal procedures, and 

lease execution procedures. The 

issuance of any lease resulting from this 

sale would not constitute approval of 

project-specific plans to develop 

offshore wind energy. Such plans, if 

submitted by the Lessee, would be 

subject to subsequent environmental, 

technical, and public reviews prior to a 

BOEM decision on whether the 

proposed development should be 

authorized. 

DATES: Comments should be submitted 

electronically or postmarked no later 

than August 1, 2022. 

For prospective bidders who want to 

participate in this lease sale: Unless you 

have received confirmation from BOEM 

that you are qualified to participate in 

a California lease sale, your 

qualification materials must be 

submitted during the comment period 

and must be submitted electronically or 

postmarked no later than August 1, 

2022. 

ADDRESSES: Submit comments on the 

PSN in one of the following ways: 

• Federal eRulemaking Portal: 

https://www.regulations.gov/. In the 

search box on web page, enter BOEM– 

2022–0017 and click ‘‘search.’’ Follow 

the instructions to submit public 

comments. 

• Mail or other delivery service: 

Enclose your comments in an envelope 


khammond on DSKJM1Z7X2PROD with NOTICES
32444 Federal Register / Vol. 87, No. 104 / Tuesday, May 31, 2022 / Notices 

labeled ‘‘Comments on California PSN,’’ 

and addressed to: Bureau of Ocean 

Energy Management, Pacific Regional 

Office, Mail Stop CM 102, 760 Paseo 

Camarillo (Suite 102), Camarillo, 

California 93010–6002. 

Qualifications Materials: Prospective 

bidders who have not yet met the 

qualifications to participate in a 

California lease sale should follow the 

guidance provided at https://

www.boem.gov/Renewable-EnergyQualification-Guidelines/. 

For more information regarding the 

submission of public comments and 

qualification materials, see section V 

under the caption SUPPLEMENTARY

INFORMATION. 

FOR FURTHER INFORMATION CONTACT: Sara 

Guiltinan, Bureau of Ocean Energy 

Management, Pacific Regional Office, 

Mail Stop CM 102, 760 Paseo Camarillo 

(Suite 102), Camarillo, California 

93010–6002, (805) 384–6345, or 

sara.guiltinan@boem.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

a. Call for Information and 

Nominations: On October 19, 2018, 

BOEM published a call for information 

and nominations in the Federal Register 

(83 FR 53096) (‘‘2018 Call’’) that 

identified three geographically distinct 

Call Areas on the OCS offshore 

California, delineated as the Humboldt 

Call Area offshore the north coast and 

the Morro Bay Call Area and the Diablo 

Canyon Call Area offshore the central 

coast. Following the 2018 Call, the 

Morro Bay and Diablo Canyon Call 

Areas were initially assessed as 

incompatible for wind energy 

development by the U.S. Department of 

Defense (DoD). However, after the initial 

assessment, BOEM, the State of 

California, various California elected 

officials, the National Oceanic and 

Atmospheric Administration’s 

(NOAA’s) Office of National Marine 

Sanctuaries (ONMS), and DoD 

continued to have discussions and 

conduct stakeholder outreach in efforts 

to accommodate offshore wind 

development within and adjacent to the 

Morro Bay Call Area and DoD’s mission 

requirements. More information and 

results of these meetings and outreach 

can be viewed at: https://

www.boem.gov/renewable-energy/stateactivities/public-information-meetingsand-outreach-efforts. 

In May 2021, the White House, the 

Department of the Interior, DoD, and the 

State of California announced an 

agreement to advance an area, known as 

the ‘‘Morro Bay 399 Area,’’ that could 

support approximately three gigawatts 

of offshore wind on roughly 399 square 

miles (255,487 acres) off California’s 

central coast within and adjacent to the 

initial 2018 Morro Bay Call Area 

(https://www.doi.gov/pressreleases/ 

biden-harris-administration-advancesoffshore-wind-pacific). 

On July 29, 2021, BOEM delineated 

the two extensions in the identified 

Morro Bay 399Area, known as the East 

and West Extensions, in a published 

Call for Information and Nominations in 

the Federal Register (86 FR 40869) 

(‘‘2021 Call’’) to solicit public input and 

industry interest in the extensions. 

In response to the 2018 Call and 2021 

Call, BOEM received over 180 

comments from the general public, 

representatives of fishing organizations 

and interests, offshore wind developers, 

other ocean industry groups, nongovernmental organizations, 

universities, Tribal governments, local 

governments, Federal and State 

agencies, and other stakeholders. In 

addition to the comments received in 

response to the 2018 Call and 2021 Call, 

BOEM received input during outreach 

and engagement with Tribal 

governments, the State of California, 

and public stakeholders in over 80 

meetings. The outreach effort and input 

received are documented in a California 

Offshore Wind Energy Planning 

Outreach Summary Report published in 

September 2018 (https://

www.boem.gov/renewable-energy/ 

california-outreach-summary-report) 

and an Outreach Summary Report 

Addendum published in June 2021 

(https://www.boem.gov/renewableenergy/state-activities/offshore-windoutreach-addendum). 

A total of 23 offshore wind developers 

submitted nominations in response to 

the 2018 Call and 2021 Call with 10 

nominations for the Humboldt Call Area 

and 17 nominations for the Morro Bay 

Call Area. 

b. Area Identification: After the close 

of the 2018 Call and the 2021 Call 

comment periods, BOEM initiated the 

Area identification (Area ID) process. 

Through the Area ID process, BOEM 

considered information sources, such 

as: Comments and nominations received 

on the 2018 Call and 2021 Call; 

information from the BOEM California 

Intergovernmental Renewable Energy 

Task Force; input from California State 

and Federal agencies; input received via 

consultation meetings and written 

comment from federally recognized 

Tribes; input received via Tribal 

outreach meetings with federally and 

non-federally recognized Tribes; the 

California Offshore Wind Energy 

Planning Outreach Summary Report and 

Addendum; California Offshore Wind 

Energy Gateway data and information 

(https://caoffshorewind.databasin.org/); 

outreach meetings and comments 

received under the California Energy 

Commission Notice of Availability of 

Outreach on Additional Considerations 

for Offshore Wind Energy off the Central 

Coast; comments from relevant 

stakeholders and ocean users, including 

the maritime community, 

environmental non-governmental 

organizations, offshore wind developers, 

and the commercial fishing industry; 

State and local renewable energy goals; 

and domestic and global offshore wind 

market and technological trends. 

BOEM also considered multiple 

existing uses of the California coast in 

developing the Call Areas and WEAs. 

BOEM found that existing uses and 

resources with the highest potential to 

be affected by offshore wind energy 

development activities in the Call Areas, 

relative to other uses and resources, 

include: (i) Commercial and recreational 

fishing; (ii) avian species; (iii) marine 

mammals; (iv) maritime navigation; (v) 

historic properties; (vi) visual impacts; 

(vii) DoD activities; (viii) places and 

resources of importance to Tribes; and 

(ix) other infrastructure. BOEM 

announced the Area ID by identifying 

within the Call Areas the Humboldt 

WEA on July 28, 2021, and the Morro 

Bay WEA on November 12, 2021. The 

Area ID announcements and maps of the 

WEAs are available at: https://

www.boem.gov/renewable-energy/stateactivities/california. 

c. Environmental Reviews: On July 28, 

2021, BOEM announced its intent to 

prepare an environmental assessment 

(EA) to consider potential 

environmental impacts from site 

characterization activities (i.e., 

biological, archaeological, geological, 

and geophysical surveys and core 

samples) and site assessment activities 

(i.e., installation of meteorological 

buoys) associated with issuing any wind 

energy leases in the Humboldt WEA. As 

part of the EA process, BOEM sought 

comments on the issues and alternatives 

that should inform the EA and received 

52 comments. The written comments, 

comment summaries, and public 

meeting recordings and transcripts are 

available at: https://www.boem.gov/ 

renewable-energy/state-activities/ 

humboldt-wind-energy-area. BOEM 

announced the availability of the draft 

Humboldt EA on January 11, 2022, and 

initiated a 30-day public comment 

period. BOEM received 43 comments on 

the draft Humboldt EA. Written 

comments are available at http:// 

www.regulations.gov/, under Docket No. 

BOEM–2021–0085. Public meeting 

recordings and summaries are available 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 87, No. 104 / Tuesday, May 31, 2022 / Notices 32445 

at: https://www.boem.gov/renewableenergy/state-activities/humboldt-windenergy-area. The EA was subsequently 

revised based on comments received 

during the comment period and public 

meetings. The revised EA and the 

finding of no significant impact were 

published on May 5, 2022, and are 

available at: https://www.boem.gov/ 

renewable-energy/state-activities/ 

humboldt-wind-energy-final-ea. 

Concurrently with its preparation of 

the Humboldt EA, BOEM conducted a 

consistency review under the Coastal 

Zone Management Act. The California 

Coastal Commission implements the 

Coastal Zone Management Act in 

California. BOEM submitted a 

consistency determination to the 

California Coastal Commission on 

January 24, 2022; Commission staff filed 

a Staff Report recommending 

conditional concurrence with BOEM’s 

consistency determination on March 17, 

2022 (see Staff Report at https://

documents.coastal.ca.gov/reports/2022/ 

4/Th8a/Th8a-4-2022%20staffreport.

pdf); and, on April 7, 2022, the 

Commission unanimously concurred 

with the staff’s conditional consistency 

recommendation. BOEM will update 

lease conditions to ensure that the 

activities authorized under the lease are 

consistent with the conditional 

concurrence of the Commission. 

On November 12, 2021, BOEM 

announced its intent to prepare an EA 

to consider potential environmental 

impacts from site characterization 

activities (i.e., biological, archaeological, 

geological, and geophysical surveys and 

core samples) and site assessment 

activities (i.e., installation of 

meteorological buoys) associated with 

issuing any wind energy leases in the 

Morro Bay WEA. As part of the EA 

process, BOEM sought comments on the 

issues and alternatives that should 

inform the EA and received 88 unique 

comments. Written comments are 

available at http://www.regulations. 

gov/, under Docket No. BOEM–2021– 

0044. Public meeting recordings and 

summaries are available at: https://

www.boem.gov/renewable-energy/stateactivities/morro-bay-wind-energy-area. 

BOEM announced the availability of the 

draft Morro Bay EA on April 6, 2022, 

and initiated a 30-day public comment 

period. On May 4, 2022, BOEM 

announced the extension of the 

comment period by 10 days in response 

to stakeholder request. 

Concurrently with its preparation of 

the Morro Bay EA, BOEM conducted a 

consistency review under the Coastal 

Zone Management Act. BOEM 

submitted a consistency determination 

to the California Coastal Commission on 

April 15, 2022. 

The Morro Bay EA will be concluded 

before and inform BOEM’s decision 

whether to proceed with the final sale 

notice (FSN). 

BOEM prepared and executed a 

programmatic agreement (PA) to guide 

its consultations under section 106 of 

the National Historic Preservation Act. 

The PA provides for consultations to 

continue through BOEM’s decisionmaking process regarding the issuance 

of leases, right-of-way grants, and rightof-use and easement grants on the OCS 

offshore California. The PA also 

includes BOEM’s phased identification 

and evaluation of historic properties. 

BOEM is conducting consultations 

under the Endangered Species Act and 

the Magnuson-Stevens Fishery 

Conservation and Management Act 

regarding potential impacts to listed 

species, designated critical habitat, and 

essential fish habitat. BOEM will 

continue to engage as required with 

Tribal governments throughout the 

wind energy authorization process, 

including through Government-toGovernment consultation with federally 

recognized Tribes. 

II. Area Proposed for Leasing 

The areas available for sale are 

proposed to be auctioned as multiple 

leases within two California regions as 

listed in the table below. 

Lease area name Lease area ID Acres 

North Coast Region: 

Humboldt NE .................................................................................................................................................... OCS–P 0561 63,338 

Humboldt SW ................................................................................................................................................... OCS–P 0562 69,031 

Central Coast Region: 

Morro Bay NW .................................................................................................................................................. OCS–P 0563 80,062 

Morro Bay C ..................................................................................................................................................... OCS–P 0564 80,418 

Morro Bay E ..................................................................................................................................................... OCS–P 0565 80,418 

Total ........................................................................................................................................................... ........................ 373,268 

The proposed Lease Areas include the 

entirety of the Humboldt and Morro Bay 

WEAs. The WEAs were subdivided so 

that each proposed Lease Area: 

• Is of roughly equal power 

generation potential and geographical 

size; 

• is delineated in a manner to 

maximize energy generation; and 

• facilitates fair return to the Federal 

Government pursuant to the OCS Lands 

Act through competition for 

commercially viable Lease Areas. 

The Morro Bay WEA has been divided 

into three Lease Areas and the 

Humboldt WEA has been divided into 

two Lease Areas. The Lease Area 

delineations are based on findings of a 

National Renewable Energy Laboratory 

(NREL) study called ‘‘Assessment of 

Offshore Wind Energy Leasing Areas for 

Humboldt and Morro Bay Wind Energy 

Areas, California,’’ available at: https:// 

www.nrel.gov/docs/fy22osti/82341.pdf. 

The designation of final Lease Areas in 

the FSN will be informed by comments 

received in this PSN and other relevant 

data. 

BOEM is aware of the proposed 

designation of the Chumash Heritage 

National Marine Sanctuary, an area 

comprising approximately 7,000 square 

miles off the central coast of California 

adjacent to the Morro Bay WEA. BOEM 

does not have authority under the OCS 

Lands Act to issue leases, right-of-way 

grants, or right-of-use and easement 

grants within any unit of the National 

Marine Sanctuary System. Potential 

bidders should note that future 

designation of a National Marine 

Sanctuary adjacent to a Lease Area may 

have implications for development of 

OCS leases for commercial wind energy. 

BOEM is coordinating closely with the 

NOAA Office of National Marine 

Sanctuaries to advance offshore wind 

energy projects and conservation and 

restoration of ocean and coastal habitats. 

More information on the proposed 

designation of Chumash Heritage 

National Marine Sanctuary is available 

at: https://sanctuaries.noaa.gov/ 

chumash-heritage/. 

BOEM is also aware that the U.S. 

Coast Guard (USCG) is conducting a 

Port Access Route Study on the Pacific 

Coast from Washington to California 

(PACPARS) to evaluate safe access 

routes for the movement of vessel traffic 


khammond on DSKJM1Z7X2PROD with NOTICES
32446 Federal Register / Vol. 87, No. 104 / Tuesday, May 31, 2022 / Notices 

proceeding to or from ports along the 

western seaboard, and, specifically, to 

determine whether a Shipping Safety 

Fairway and/or routing measures should 

be established, adjusted, or modified. 

BOEM is coordinating closely with the 

USCG to address potential maritime 

impacts from any future offshore wind 

development in the Lease Areas. More 

information on the PACPARS is 

available at http://www.regulations. 

gov/, under Docket No. USCG–2021– 

0345. 

BOEM is aware of two planned 

submarine cable systems that are 

scheduled for installation in cable 

corridors that overlap the proposed 

Lease Areas. A planned submarine 

telecommunications cable system, 

known as BIFROST, is expected to be 

installed in 2023 in a cable corridor that 

would overlap with the southern 

portion of the proposed Morro Bay E 

Lease Area. A planned 

telecommunications cable, known as 

ECHO, is expected to be installed in 

Eureka, California, in 2023 and would 

overlap with both proposed Humboldt 

Lease Areas. 

A description of the proposed Lease 

Areas can be found in Addendum ‘‘A’’ 

of the proposed lease, which BOEM has 

made available with this notice on its 

website at: https://www.boem.gov/ 

renewable-energy/state-activities/ 

california. 

a. Map of the Areas Proposed 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: https://

www.boem.gov/renewable-energy/stateactivities/california. 

b. Potential Future Restrictions to 

Ensure Navigational Safety: 

i. USCG Navigational Safety 

Measures: Potential bidders should note 

that the USCG is conducting a 

PACPARS to evaluate safe access routes 

for the movement of vessel traffic 

proceeding to or from ports or places 

along the western seaboard of the 

United States and to determine whether 

a Shipping Safety Fairway and/or 

routing measures should be established, 

adjusted, or modified. The PACPARS 

will evaluate the continued 

applicability of, and the need for 

modifications to, current vessel routing 

measures. The data gathered during the 

PACPARS may result in the 

establishment of one or more new vessel 

routing measures, modification of 

existing routing measures, or 

disestablishment of existing routing 

measures off the Pacific Coast between 

Washington and California. BOEM may 

require mitigation measures in the 

construction and operations plan (COP) 

once the Lessee’s site-specific 

navigational safety risk assessment is 

available to inform BOEM’s decisionmaking. The PACPARS may result in 

additional navigational mitigation 

measures at the COP review stage. 

ii. Measures for Vessel Transit: The 

information currently available does not 

indicate that vessel routing mitigation 

measures are warranted, but BOEM may 

nonetheless consider designating 

portions of the proposed Lease Areas as 

areas of no surface occupancy to 

facilitate vessel transit and continuance 

of existing uses. Vessels cross the Morro 

Bay WEA to enter the USCG 

Recommended Tracks within the 

Monterey Bay National Marine 

Sanctuary and traffic lanes outside the 

San Francisco Bay. Bidders should be 

aware that a lease stipulation may be 

included in the FSN that addresses 

vessel routing measures, depending on 

the outcome of additional discussions 

with the USCG, ocean users, and 

stakeholders, and consideration of 

comments submitted in response to this 

PSN. 

c. Potential Future Restrictions to 

Mitigate Potential Conflicts with 

Department of Defense Activities: In 

2018, DoD reviewed the Humboldt and 

Morro Bay Call Areas (83 FR 53096) in 

support of BOEM’s efforts to deconflict 

potential wind energy development in 

the areas in northern and central 

California, respectively. DoD provided 

its assessment of the California Offshore 

Planning Areas, and the 2018 DoD 

assessment indicated that its mission 

activities along most of the central coast, 

including the Morro Bay Call Area, are 

incompatible with wind energy 

development. DoD determined that the 

Humboldt Call Area, located off the 

coast of northern California, was DoDmission compatible, with site-specific 

stipulations. 

On May 25, 2021, the Departments of 

the Interior and Defense and the State of 

California announced an agreement to 

accelerate wind energy offshore the 

central and northern coasts of 

California. The Department of the 

Interior, in cooperation with DoD and 

the State of California, identified the 

Morro Bay 399 Area that could support 

approximately three gigawatts of 

offshore wind on roughly 399 square 

miles off California’s central coast, 

northwest of Morro Bay. The 

announcement also acknowledged the 

critical nature of current and future 

military testing, training, and operations 

in the central coast and noted the 

parties’ commitment to ensuring longterm protection of military testing, 

training, and operations in the area 

while pursuing new domestic clean 

energy resources. This announcement 

came after years of collaboration 

between the Departments of the Interior 

and Defense to find areas offshore the 

central coast of California that are 

compatible with DoD’s training and 

testing operations. The proposed Lease 

Areas offshore Morro Bay are all located 

within the Morro Bay 399 Area and 

have been determined by DoD to be 

suitable for development, with sitespecific stipulations. 

Prospective bidders should be aware 

that site specific stipulations may be 

required in consultation with DoD for 

development within the Lease Areas. 

For example, the North American 

Aerospace Defense Command mission 

may be affected by the development of 

the Lease Areas. BOEM will coordinate 

with DoD and the Lessee to deconflict 

these potential impacts throughout the 

project review stage. Mitigation 

measures or terms and conditions of a 

plan approval may result from this 

coordination effort. 

III. Participation in the Proposed Lease 

Sale 

a. Bidder Participation: Entities that 

are already qualified to participate in an 

upcoming sale through their response to 

a Call or submission of qualification 

materials are not required to take any 

additional action to affirm their interest. 

Those entities are listed below: 

Company name Company 

No. 

547 Energy LLC .................................... 15123 

Algonquin Power Fund (America) Inc ... 15090 

Arevia Power LLC ................................. 15129 

Avangrid Renewables, LLC .................. 15019 

Castle Wind LLC ................................... 15085 

Central California Offshore Wind LLC .. 15110 

Cademo Corporation ............................. 15093 

Clearway Renew LLC ........................... 15109 

EDF Renewables Development, Inc ..... 15027 

EDPR Offshore North America LLC ..... 15074 

Equinor Wind US LLC ........................... 15058 

JERA Renewables NA, LLC ................. 15131 

Marubeni Power International, Inc ........ 15128 

Mission Floating Wind LLC ................... 15087 

Northcoast Floating Wind LLC .............. 15088 

Northland Power America Inc ............... 15068 

Orsted North America Inc ..................... 15059 

Redwood Coast Energy Authority 

(RCEA) .............................................. 15084 

Redwood Coast Offshore Wind LLC ..... 15106 

RWE Renewables Development, LLC .. 15080 

Shell New Energies US LLC ................. 15140 

US Mainstream Offshore, Inc ................ 15120 

wpd offshore Alpha, LLC ...................... 15060 

All other entities who would like to 

participate in the proposed lease sale 

must submit the required qualification 

materials by the end of the 60-day 

comment period for this PSN. 

b. Affiliated Entities: On the Bidder’s 

Financial Form (BFF), discussed in 

section V.(c)(i), below, eligible bidders 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 87, No. 104 / Tuesday, May 31, 2022 / Notices 32447 

must list any other eligible bidders with 

whom they are affiliated. BOEM 

considers two entities to be affiliated if 

(a) one entity (or its parent or 

subsidiary) has or retains a right, title, 

or interest in the other entity (or its 

parent or subsidiary), including the 

ability to control or direct actions with 

respect to such entity, either directly or 

indirectly, individually or through any 

other party; or (b) the entities are both 

direct or indirect subsidiaries of the 

same parent company. BOEM further 

considers the following regarding 

affiliated entities: 

i. BOEM considers two entities to be 

affiliated if ownership or common 

ownership of more than 50 percent of 

the voting securities, or instruments of 

ownership or other forms of ownership, 

of another person constitutes control 

(person means any individual, firm, 

corporation, association, partnership, 

consortium, or joint venture (when 

established as a separate entity)). 

Ownership of less than 10 percent 

constitutes a presumption of noncontrol that BOEM may rebut. 

ii. If there is ownership or common 

ownership of 10 through 50 percent of 

the voting securities or instruments of 

ownership, or other forms of ownership, 

of another person, BOEM will consider 

each of the following factors to 

determine if there is control under the 

circumstances of a particular case: 

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 persons, if a person 

is the greatest single owner, or if there 

is an opposing voting bloc of greater 

ownership. 

c. Operation of a lease, plant, or other 

facility. 

d. The extent of other owners’ 

participation in operations and day-today management of a lease, plant, or 

other facility. 

e. Other evidence of power to exercise 

control over or common control with 

another person. 

BOEM solicits comments from 

stakeholders on this definition. See 

Section 4 below. 

c. Affiliated eligible bidders are not 

permitted to compete against each other 

in either the North Coast or Central 

Coast auctions. However, one affiliate 

may participate in the North Coast and 

one in the Central Coast because they 

would not be bidding against each 

other. Where multiple affiliated bidders 

have qualified to bid in the same lease 

sale, bidders must decide prior to the 

auction which one eligible affiliated 

bidder (if any) will participate in each 

of the two simultaneous auctions. If two 

or more affiliated bidders seek to 

participate in the auction for the same 

Region, BOEM will disqualify such 

bidders from the auction. 

IV. Questions for Stakeholders 

Stakeholders are encouraged to 

comment on any matters related to this 

lease sale that are of interest or concern. 

However, BOEM has identified certain 

issues as particularly important in 

developing this lease sale and 

encourages commenters to address these 

issues specifically. 

a. Number, Size, Orientation, and 

Location of the Proposed Lease Areas: In 

this PSN, BOEM proposes five Lease 

Areas in California. BOEM is seeking 

feedback on the proposed number, size, 

orientation, and location of the Lease 

Areas and welcomes comments on 

which Lease Areas, if any, should be 

prioritized for inclusion, or exclusion, 

from this lease sale or future lease sales. 

Considerations for the delineation of 

Lease Area may include: Equal 

commercial viability and size; 

prevailing wind direction and minimal 

wake effects; maximized energy 

generating potential; mooring system 

anchor footprints and extents; possible 

setbacks at Lease Area boundaries; 

distance to shore, port infrastructure, 

and electrical grid interconnections; and 

fair return to the Federal Government 

pursuant to the OCS Lands Act through 

competition for commercially viable 

lease areas. Additional comments are 

welcome regarding other considerations 

for delineating Lease Areas. 

b. Engaging Underserved 

Communities: Executive Order 13985, 

‘‘Advancing Racial Equity and Support 

for Underserved Communities Through 

the Federal Government,’’ directs 

advancement of equity for all, including 

people of color and others who have 

been historically underserved, 

marginalized, and adversely affected by 

persistent poverty and inequality. 

Executive Order 14008, ‘‘Tackling the 

Climate Crisis at Home and Abroad,’’ 

establishes a policy to secure 

environmental justice and spur 

economic opportunity for disadvantaged 

communities through investing in and 

building a clean energy economy and 

making environmental justice part of 

every agency’s mission. 

Consistent with its statutory and 

regulatory authorities, BOEM is 

considering lease stipulations to ensure 

that communities, particularly 

underserved communities, are 

considered and engaged throughout the 

offshore wind energy development 

process, that potential impacts and 

benefits from Lessees’ projects are 

documented, and Lessees’ project 

proposals are informed by or altered to 

address those impacts and benefits. 

BOEM invites comments on the 

appropriate mechanisms and evaluation 

metrics for lease stipulations to benefit 

underserved communities, including 

how the stipulations would further 

development of the proposed Lease 

Areas and the purposes of OCS Lands 

Act. BOEM requests that commenters 

provide references to any studies that 

support their recommendations. 

c. Bidding Credits: As authorized 

under 30 CFR 585.220(a)(4) and 

585.221(a)(6), BOEM proposes to use a 

multiple-factor auction format, with a 

multiple-factor bidding system, for this 

lease sale. The bidding system for this 

lease sale is proposed as a multiplefactor combination of a monetary bid 

and up to two non-monetary factors. 

BOEM is proposing to grant bidding 

credits to potential bidders for 

commitments to: 

(1) Support workforce training 

programs for the offshore wind industry 

and/or development of a U.S. domestic 

supply chain for the offshore wind 

industry, and 

(2) establish a community benefit 

agreement (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 directly 

impacted by the Lessee’s potential 

offshore wind development. 

In previous commercial lease sales, 

BOEM has proposed non-monetary 

auction factors to enhance, through 

training, the offshore wind workforce or 

to stand up the domestic supply chain 

for offshore wind manufacturing, 

assembly, or services. For this sale, 

BOEM is also considering non-monetary 

auction factors to foster development of 

the Lease Area through cooperation 

with communities affected by activities 

on the OCS, as described in section 

V.(c)(iii) below. BOEM is also exploring 

an additional bidding credit, targeting 

other effects from OCS development, as 

described in section V.(c)(iv) below. 

In a multi-factor auction, BOEM 

appoints a panel to review the 

requirements and restrictions of the 

non-monetary component(s) and the 

bidder’s conceptual strategy, submitted 

with the BFF. Following the panel’s 

review of the bidding credit conceptual 

strategy, BOEM would notify the bidder 

if it qualifies for a credit(s) prior to the 

mock auction. The bid made by a 

particular bidder in each round would 


khammond on DSKJM1Z7X2PROD with NOTICES
32448 Federal Register / Vol. 87, No. 104 / Tuesday, May 31, 2022 / Notices 

represent the sum of a monetary (cash) 

amount and non-monetary factors 

(bidding credit(s)). The structure of the 

proposed bidding credits is explained in 

the subsection below. BOEM would 

start the auction using the minimum bid 

price for each Lease Area and would 

increase those prices incrementally 

until no more than one active bidder per 

Lease Area remains in the auction. A 

bidder would be eligible to elect to 

qualify for one or both of the bidding 

credits. A work force training credit or 

supply chain development credit would 

be worth 20 percent of the cash bid. A 

bidder could commit to both workforce 

training and supply chain development, 

but the total amount of the credit would 

still be 20 percent. The proposed CBA 

bidding credit would be worth 2.5 

percent of the cash bid. If a bidder 

qualifies for all proposed bidding 

credits, the credits would be additive, 

for a total potential credit of maximum 

22.5 percent of the cash bid. Bidders are 

encouraged to review the proposed BFF 

Addendum if they are interested in 

qualifying for these bidding credits. 

i. Bidding credit calculation: Bidders 

interested in a bidding credit would 

have the option to qualify for: 

1. Both proposed bidding credits 

described below for a cumulative 22.5 

percent credit; 

2. A workforce training and/or supply 

chain development credit (with the 

opportunity to target either workforce 

training, supply chain development, or 

a combination thereof) for a 20 percent 

credit; or 

3. The CBA credit for a 2.5 percent 

credit. 

BOEM provides the following 

example. For a cumulative 22.5 percent 

bidding credit with a $50 million 

Asking Price, the bidding credit would 

be calculated within the auction 

software as follows: 

As proposed, only the 20 percent 

workforce training and/or supply chain 

development credit would require an 

explicit financial commitment. Under 

BOEM’s proposal, bidders seeking a 

CBA credit would retain the flexibility 

to determine the optimal benefits (both 

monetary and non-monetary) on which 

the parties can agree. Thus, per the 

example above, the required financial 

commitment for the workforce training 

and/or supply chain development credit 

would be calculated as follows: 

BOEM has prepared a table 

demonstrating the financial 

commitment calculations if a $50 

million asking price is paid for in part 

with various bidding credits. Any 

financial commitment is calculated 

solely from the value of the 20 percent 

workforce training and/or supply chain 

development bidding credit, with no 

financial commitment required for a 

CBA credit. 

Bidding credits qualified for Asking price Cash bid Percent credit Credit value 

Commitment 

(80% of the 20% 

credit) 

Workforce Training/Supply Chain Development; Lease Area Use CBA (22.5%).$50 million ............... $40,816,326.53 22.5 $9,183,673.47 $6,530,612.24 

Workforce Training/Supply Chain Development (20%).50 million ................. 41,666,666.67 20.0 8,333,333.33 6,666,666.67 

Lease Area Use CBA Credit (2.5%) .......... 50 million ................. 48,780,487.80 2.5 1,219,512.20 N/A 

ii. 20 Percent Bidding Credit Either for 

Workforce Training or Supply Chain 

Development or a Combination of Both: 

The proposed bidding credit would 

allow a bidder to receive a credit of 20 

percent of its cash bid in exchange for 

committing to make a qualifying 

monetary contribution (‘‘Contribution’’) 

to programs or initiatives, as described 

in the BFF Addendum and lease, that 

either support workforce training 

programs for the offshore wind industry, 

support development of a U.S. domestic 

supply chain for the offshore wind 

industry, or support a combination of 

both. To qualify for the credit, the 

winning bidder would be required to 

commit to make a financial Contribution 

of at least 80 percent of the bidding 

credit cash value toward a workforce 

training program and/or the 

development of a domestic supply 

chain, as described in the BFF 

Addendum and lease. The 80 percent 

Contribution of the bid credit value is 

designed to incentivize bidders to 

commit funds to workforce training and 

to develop the domestic offshore wind 

supply chain. The discount to the bid 

credit value recognizes the Lessee’s 

administrative burden associated with 

fulfilling bidding credit requirements. A 

mathematical example is shown in 

section IV.(c)(i) above. If a bidder 

qualifies to bid for a Lease Area in both 

regions and seeks to qualify for a credit 

in both regions, the bidder must submit 

one bidding credit conceptual strategy, 

but identify any differences in the 

strategy for each region. 

1. As proposed, the Contribution to 

workforce training must result in a 

better trained and/or larger domestic 

offshore wind work force that would 

provide for more efficient operations via 


khammond on DSKJM1Z7X2PROD with NOTICESEN31MY22.221</GPH> EN31MY22.222</GPH>

. {Asking Price} {$50 million} Cash Bid= l + Credit% = l + 22_5% = $40,816,326.53 

Credit= $50 million - $40,816,326.53 = $9,183,673.47 

20% 20% 

Commitment= Credit* Total Credit%* 80% = $9,183673.47 * 22_5% * 0.8 = $6,530,612.24 
Federal Register / Vol. 87, No. 104 / Tuesday, May 31, 2022 / Notices 32449 

an increase in the supply of fully 

trained personnel. 

2. The Contribution to domestic 

supply chain development must result 

in a more stable domestic supply chain 

by reducing the upfront capital or 

certification cost for manufacturing 

offshore wind components, including 

the building of facilities, the purchasing 

of capital equipment, and the certifying 

of existing manufacturing facilities. 

3. Bidders interested in obtaining the 

bidding credit could choose to commit 

to workforce training programs, 

domestic supply chain initiatives, or a 

combination of both. Bidders would be 

required to note, on the BFF, their 

commitment to earn the bidding credit. 

A bidder interested in using a bidding 

credit would be required to submit its 

bidding credit conceptual strategy with 

its BFF. The strategy would be required 

to describe the verifiable actions the 

Lessee would take and that would allow 

BOEM to confirm compliance when the 

Lessee submits its documentation. 

Bidders are encouraged to review the 

proposed BFF Addendum if they are 

considering qualifying for the bidding 

credit. 

4. BOEM proposes to permit a Lessee 

to defer its payment fulfilling the 

commitment, with 25 percent due prior 

to the first COP submittal for the Lease 

Area, and the remainder due prior to the 

first Facility Design Report (FDR) 

submittal to BOEM. Lessees would be 

required to provide documentation 

showing that they had met the 

commitment and complied with the 

applicable bidding credit requirements 

no later than the submission to BOEM 

of the first COP (25 percent) and first 

FDR (remainder) for the Lease, as 

described below. Deferring the payment 

until the COP and FDR would enable 

the Lessee to identify programs or 

recipients best suited to meet the 

bidding credit purpose and goals, as 

described in the BFF Addendum. 

5. As proposed, contributions to 

workforce training must consist of one 

or more of the following: (i) 

Contributions in support of 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 offshore wind 

energy projects in the United States; (ii) 

Contributions toward maritime training 

necessary for the crewing of vessels to 

be used for the construction, servicing, 

and/or decommissioning of wind energy 

projects in the United States; (iii) 

Contributions toward training workers 

in skills or techniques necessary to 

manufacture or assemble offshore wind 

components, subcomponents or 

subassemblies. Examples of 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) Contributions 

toward training in any other job skills 

that the Lessee can demonstrate are 

necessary for the planning, design, 

construction, operation, maintenance, or 

decommissioning of offshore wind 

energy projects in the United States. 

6. As proposed, contributions to 

domestic supply chain development 

must consist of one or more of the 

following: (i) Contributions supporting 

the development of a domestic supply 

chain for the offshore wind industry, 

including manufacturing of components 

and sub-assemblies and the expansion 

of related services; (ii) Contributions to 

domestic tier-2 and tier-3 offshore wind 

component suppliers, including 

suppliers of components specifically 

needed to develop floating wind 

technology, and domestic tier-1 supply 

chain efforts, including quay-side 

fabrication; (iii) Contributions for 

technical assistance grants to help U.S. 

manufacturers re-tool or certify (e.g., 

ISO–9001) for offshore wind 

manufacturing; (iv) Contributions for 

the development of Jones Act-compliant 

vessels for the construction, servicing, 

and/or decommissioning of wind energy 

projects in the United States; (v) 

Contributions to establish a new or 

existing bonding support reserve or 

revolving fund available to all 

businesses providing goods and services 

to offshore wind energy companies, 

including disadvantaged businesses; (vi) 

Other Contributions to supply chain 

development efforts that the Lessee can 

demonstrate further the manufacture of 

offshore wind components or 

subassemblies, or the provision of 

offshore wind services, in the United 

States. 

7. Documentation: Under the 

proposed sale, if a lease is awarded 

pursuant to a winning bid that includes 

a bidding credit for workforce training 

and/or supply chain development, the 

Lessee must provide documentation to 

BOEM showing that the Lessee has met 

at least 25 percent of the commitment 

and complied with the applicable 

bidding credit requirements by no later 

than the submission of the Lessee’s first 

COP, and must provide documentation 

that it has met the remainder of the 

commitment no later than the 

submission of the first FDR. As 

proposed, the documentation must 

enable BOEM to objectively verify the 

amount of the Contribution and the 

beneficiary(ies) of the Contribution. At a 

minimum, the documentation submitted 

with the first COP, and that submitted 

with the first FDR, must include: All 

written agreements between the Lessee 

and beneficiary(ies) of the Contribution; 

all receipts documenting the amount, 

date, financial institution, and the 

account and owner of 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: The amount 

and date(s) of the Contribution; that the 

Contribution is being (or will be) used 

in accordance with the bidding credit 

requirements in the lease; and that all 

information provided is true and 

accurate. The documentation would 

need to describe how the funded 

initiative or program has advanced, or is 

expected to advance, U.S. offshore wind 

workforce training and/or supply chain 

development. The documentation 

should also provide qualitative and/or 

quantitative information that includes 

the estimated number of trainees or jobs 

supported, or the estimated leveraged 

supply chain investment resulting or 

expected to result from the 

Contribution. The documentation must 

contain any information specified in the 

conceptual strategy that the Lessee 

submitted with its BFF. If the Lessee’s 

implementation strategy has changed 

due to market needs or other factors, the 

Lessee must explain this change. As 

proposed, BOEM would reserve all 

rights to determine that the bidding 

credit has not been satisfied if changes 

relative to the Lessee’s conceptual 

strategy, submitted with its BFF, do not 

meet the criteria for the bidding credit 

described in the lease. 

8. Enforcement: The commitment for 

the bidding credit would be made in the 

BFF and would be included in a lease 

addendum that would bind the Lessee 

and all future assignees of the lease. If 

BOEM were to determine that a Lessee 

or assignee had failed to satisfy the 

requirements of the bidding credit, or if 

a Lessee were to relinquish or otherwise 

fail to develop the lease by the tenth 

anniversary date of lease issuance, the 

amount corresponding to the bidding 

credit awarded would be immediately 

due and payable to the Office of Natural 

Resources Revenue (ONRR) with 

interest from the date of lease execution. 

The interest rate would be the 

underpayment interest rate identified by 

ONRR. BOEM could, at its sole 

discretion, extend the documentation 


khammond on DSKJM1Z7X2PROD with NOTICES
32450 Federal Register / Vol. 87, No. 104 / Tuesday, May 31, 2022 / Notices 

deadline beyond the COP, FDR or the 

10-year timeframe. 

iii. Questions Regarding Bidding 

Credit for Workforce Training and/or 

Supply Chain Development: 

1. Is the proposed maximum 20 

percent bidding credit for workforce 

training and/or supply chain 

development the optimal percentage to 

support workforce training and supply 

chain development? If not, please 

propose percentage(s) that may be 

optimal and explain why that level is 

most appropriate to drive the benefits 

intended by the credit while 

simultaneously supporting a 

competitive lease sale. Please also 

explain how your proposal better 

supports workforce training programs 

and/or development of a U.S. domestic 

supply chain for the offshore wind 

industry, and how it is consistent with 

the requirement that the government 

receive a fair return from the lease 

auction. 

2. As proposed, the winning bidder 

would be required to commit to make a 

financial Contribution of at least 80 

percent of the bidding credit cash value 

toward a workforce training program 

and/or the development of the domestic 

supply chain. BOEM solicits any views 

as to whether it should choose a 

Contribution threshold other than 80 

percent, or should eliminate this 

Contribution discount on the bid credit 

value. 

3. What other activities should qualify 

for this bidding credit to best support a 

sustained and robust U.S. offshore wind 

supply chain, particularly a floating 

wind supply chain? For example, are 

there activities related to manufacturing, 

sourcing of raw materials and 

components, or other offshore windrelated industries that BOEM should 

consider as possibly qualifying for this 

credit? Please explain how the proposed 

qualifying activity supports the 

development of a domestic supply chain 

and how that support can best be 

documented. 

4. Should the sale encompass a 

bidding credit for a bidder who 

proposes that its financial commitment 

include entering into a long-term 

contract for components needed to build 

or maintain its project that will also 

benefit the offshore wind industry as a 

whole, such as the construction of new 

manufacturing capacity or investment in 

expanding or re-tooling existing 

capacity? Are other effects of such 

contracts conducive to development of 

renewable energy on the OCS? How 

might the bidder document that its 

contract facilitated such development? 

Should BOEM require the manufacturer 

or bidder to demonstrate that the new or 

expanded capacity also will be used to 

fulfill contracts with other developers? 

How much of the value of such a 

contract should count toward any 

potential credit, and why? 

iv. Lease Area Use Bidding Credit: 

The second bidding credit proposed 

would allow a bidder to receive a credit 

of 2.5 percent of its cash bid in 

exchange for an existing CBA or a 

commitment to enter into a new 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 

directly impacted by the Lessee’s 

potential offshore wind development. 

The CBA is intended to mitigate 

potential impacts to the 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. To 

qualify for the credit, the bidder would 

be required to commit to the bidding 

credit requirements in the BFF and 

submit a strategy as described in the 

BFF Addendum. If a bidder were to 

qualify to bid for a Lease Area in both 

regions, and would like to qualify for a 

CBA credit in each of those regions, 

bidders need only submit a single Lease 

Area Use Bidding Credit conceptual 

strategy, including any measures 

tailored to the individual regions. The 

CBA(s) must be between the Lessee (or 

affiliated entity) and a qualifying 

community or stakeholder group in each 

region for which the bidder wishes to 

receive a credit. A mathematical 

example showing how this bidding 

credit would be calculated is available 

in section V.(c)(i) above. 

1. As proposed, bidders interested in 

pursuing a bidding credit for this CBA 

must note on the BFF whether they have 

an existing CBA that conforms with 

BOEM’s requirements or are instead 

making a commitment to enter into a 

CBA. Bidders seeking the bidding credit 

must submit their conceptual strategy 

with their BFF, further described below 

and in the BFF Addendum. The 

conceptual strategy would need to 

describe the verifiable actions that the 

Lessee intends to take that would enable 

BOEM to confirm compliance when the 

Lessee submits its documentation 

showing how it is satisfying the 

requirements for the bidding credit. A 

Lessee would be required to provide 

documentation showing that the Lessee 

has met the commitment and complied 

with the applicable bidding credit 

requirements no later than the 

submission to BOEM of the first FDR for 

the lease. Deferring the fulfillment of the 

commitment until the first FDR would 

enable the Lessee to identify 

stakeholders with impacts in need of 

mitigation or the greatest potential to 

expedite or facilitate orderly OCS 

renewable energy development. 

2. As proposed, a qualifying CBA 

must meet the following requirements: 

(i) The CBA must be an agreement 

between (a) the Lessee or its affiliated 

entity, or, if appropriate, its assignee(s), 

and (b) 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 directly impacted 

by the Lessee’s potential offshore wind 

development; (ii) Specify the monetary, 

material, or other benefits provided, or 

to be provided, by the Lessee to the 

directly impacted community or 

stakeholder group; (iii) Indicate 

commitment of parties to collaboration 

and resolution of issues, communication 

methods, engagement methods, or 

educational opportunities for the 

impacted community or stakeholder 

group; (iv) Specify plans (or strategies) 

to mitigate potential impacts from the 

proposed development of the Lease 

Area on the community or stakeholder 

group. 

3. No part of any CBA otherwise 

eligible for this credit may include 

exclusivity or preferential clauses that 

prevent or disincentivize an entity, 

community, or stakeholder from 

entering into similar agreements with 

other OCS lessees or potential lessees. 

4. As proposed, a Lessee may enter 

into a CBA with a single counterparty or 

with multiple counterparties and may 

enter into more than one CBA. 

5. Documentation: As proposed, if a 

lease is awarded pursuant to a winning 

bid that includes a CBA credit, the 

Lessee must provide written 

documentation to BOEM demonstrating 

execution of the CBA commitment no 

later than submission of the Lessee’s 

first FDR. The documentation must 

enable BOEM to objectively verify the 

CBA has met all applicable 

requirements as outlined in the BFF 

Addendum and Lease. At a minimum, 

this documentation must include: All 

written agreements between the Lessee 

and beneficiary(ies), including the 

executed CBA; any receipts proving 

monetary contributions as required by 

the CBA, 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 CBA 

signatories or their assignees attesting 

to: The date the CBA was entered; 

explaining how the CBA addresses (or 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 87, No. 104 / Tuesday, May 31, 2022 / Notices 32451 

will address) the potential impacts to 

the use of the geographic space of the 

Lease Area, or resources harvested from 

that geographic space, arising from the 

potential development of the Lease 

Area; and the truth and accuracy of all 

the information provided. The 

documentation must contain any 

information specified in the conceptual 

strategy that was submitted with the 

BFF. If the Lessee’s conceptual strategy 

has changed due to market needs or 

other factors, the Lessee must explain 

this change. 

6. Enforcement: The commitment for 

the Lease Area Use Bidding Credit will 

be made in the BFF and will be 

included in a lease addendum that 

binds the Lessee and all assignees of the 

lease. If BOEM were to determine that 

a Lessee or assignee had failed to satisfy 

the commitment at the FDR stage, 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 date of lease execution. The 

interest rate would be the 

underpayment interest rate identified by 

ONRR. BOEM could, at its sole 

discretion, extend the documentation 

deadline beyond the FDR or the 10-year 

timeframe. 

v. Potential Additional Credit: BOEM 

is exploring whether it has the authority 

to pursue an additional bidding credit 

for a CBA addressing impacts 

attributable to potential offshore wind 

development not covered under the 

contemplated Lease Area Use Bidding 

Credit. BOEM is seeking comments on 

all aspects of this potential CBA and 

specifically on how it can be justified 

under the OCS Lands Act), for example: 

1. What goals of the OCS Lands Act 

would be furthered by such a CBA? 

What restrictions, if any, does OCS 

Lands Act impose on such a CBA? 

2. What benefits could be promoted 

by a more general CBA? Would a CBA 

be effective in promoting benefits, such 

as job creation, education opportunities, 

or increased engagement, that mitigate 

the potential impacts of the 

development of the Lease Areas? 

3. What potential impacts should be 

addressed? What quantifiable impacts 

will be felt by local communities 

associated with cultural and visual 

resources, the human environment, or 

other resources? How might a CBA lead 

to expeditious and orderly development 

of offshore wind resources in the Lease 

Areas? 

4. What types of groups or legally 

recognized entities should be eligible to 

enter into a CBA? 

5. What are the key elements of a CBA 

that BOEM should consider? Should the 

requirements for eligibility for bidding 

credits for a CBA include transparency, 

coalition building, inclusiveness, or 

enhanced communication? 

6. How can BOEM use this potential 

type of credit to encourage early 

community engagement, mutual 

benefits, and a long-lasting dialogue 

between a potential developer and 

community or stakeholder group? What 

types of agreements could BOEM 

promote that result in mutually 

beneficial outcomes to both the Lessee 

and community or stakeholder groups, 

or lead to expeditious and orderly 

development of offshore wind resources 

in the Lease Areas? 

vi. General Questions Regarding CBA 

credits: BOEM is interested in 

comments answering the following 

questions in this section relevant to 

CBAs and the associated bidding credits 

as described in sections IV.(c)(iv) and 

IV.(c)(v) above. 

1. How should BOEM evaluate the 

agreements? On what metrics can BOEM 

evaluate CBAs? How can BOEM verify 

actions to be undertaken pursuant to the 

CBA? 

2. How and when should BOEM 

enforce and monitor CBA 

commitments? 

3. What level of credit should BOEM 

offer in exchange for bidders entering 

into a CBA, and how does that level 

affect receipt of fair return to the United 

States? 

4. If BOEM grants a bidding credit for 

a CBA, at what point in BOEM’s 

renewable energy leasing process must 

the CBA be executed? 

5. Should the two CBA credits BOEM 

discussed above be combined? 

6. Should executed CBAs be posted 

publicly? 

7. What disclosures/certifications 

should be required to be part of any 

CBA? Anything else BOEM should take 

into consideration when evaluating the 

use of CBAs? 

8. Should BOEM explicitly allow a 

Lessee’s CBA to include payments into 

a mitigation or innovation fund? For 

example, funds established or created to 

address fishermen’s gear changes, 

technology improvements that minimize 

impacts, lost revenue, or other various 

impacts potentially resulting from the 

development of the Lease Area. If so, 

what metrics should BOEM use to 

evaluate whether the use of the fund is 

acceptable in meeting OCS Lands Act 

goals such as leading to expeditious and 

orderly development of the OCS? 

9. Is offering a bidding credit to enter 

into a CBA the most effective method to 

encourage similar types of agreements 

between developers and stakeholders or 

community groups, or is there a more 

effective format BOEM should consider? 

Commenters should consider that 

bidding credits must be consistent with 

BOEM’s authority under the OCS Lands 

Act. 

d. Limits on the Number of Lease 

Areas per Bidder: BOEM recognizes that 

the offering for sale of two regions (i.e., 

Humboldt WEA and Morro Bay WEA), 

hundreds of miles apart, is novel. BOEM 

is proposing to allow each qualified 

entity to bid for one lease per region 

(North Coast Region and Central Coast 

Regions) and ultimately acquire one 

Lease Area per region via simultaneous 

auctions occurring at the same time, as 

described in section XII.(b)(i) below. 

BOEM is seeking feedback on this 

proposal, including feedback on how 

different leasing scenarios (e.g., number 

of Lease Areas offered, size of Lease 

Areas, etc.) may influence the 

advisability of such a limitation. 

e. The Definition of ‘‘Affiliated 

Entities’’: BOEM is prohibiting 

‘‘affiliated entities’’ from bidding against 

each other in an auction. This measure 

limits a single entity to bidding on and 

winning a single lease. BOEM seeks 

comments on the definition and 

concepts of affiliation contained in 

Section 3 of the Proposed Sale Notice. 

Furthermore, in past lease sales, 

BOEM’s definition of ‘‘affiliated 

entities’’ was tied to direct or indirect 

ownership or control of one entity over 

another. This effectively prevented a 

bidder and several subsidiaries from 

bidding in the same lease sale. This 

definition, however, does not explicitly 

preclude bidding by multiple entities 

that have formed agreements with the 

effect of circumventing the spirit of a 

one-per-customer sale. For example, 

BOEM’s prior auctions arguably did not 

cover a situation in which a bidder had 

obtained development rights in other 

bidders’ projects. Accordingly, BOEM 

requests comment on revising the 

definition of ‘‘affiliated entities’’ for this 

sale to include bidders that have, prior 

to the auction, entered into agreement 

with each other that is related to the 

disposition of leases offered in either of 

the auctions. This change would likely 

be accompanied by a new requirement 

to disclose any agreements with 

affiliated bidders regarding the 

disposition of leases that may be 

acquired in the auction. BOEM invites 

comment on whether this adjustment to 

the definition of ‘‘affiliated’’ sufficiently 

promotes the objectives of a ‘‘one-percustomer’’ sale. 

f. Tribal Governments, Ocean Users, 

Underserved Communities, Agencies, 

and Other Stakeholders Engagement 


khammond on DSKJM1Z7X2PROD with NOTICES
32452 Federal Register / Vol. 87, No. 104 / Tuesday, May 31, 2022 / Notices 

and Reporting: In an effort to require 

early and regular engagement with 

Tribal governments, ocean users, 

underserved communities, agencies, 

and other stakeholders that may be 

potentially affected by activities on the 

OCS (collectively ‘‘Tribes and parties’’), 

BOEM is proposing to require a semiannual progress report and minimum 

engagement requirements. Within the 

progress report, Lessees would be 

required to identify Tribes and parties 

potentially affected by proposed 

activities and provide updates on 

engagement activities, impacts on or 

benefits to the Tribes and parties from 

proposed activities, and how, if at all, a 

project proposal has been informed or 

altered to address those impacts or 

benefits, as well as any planned 

engagement activities during the next 

reporting period. 

In acknowledgment of the existing 

and growing consultation burden placed 

on many Tribes and parties, the 

stipulation would also require, to the 

maximum extent practicable, that 

Lessees coordinate with one another on 

engagement activities. It is BOEM’s 

intention that this requirement to 

coordinate engagement apply not only 

to meetings proposed by Lessees, but 

also to reasonable requests to coordinate 

engagement made by Tribes and parties. 

For example, one possible lease 

stipulation to facilitate coordinated 

Tribal engagement could require Lessees 

to offer coordination meetings at regular 

intervals throughout the year (i.e., 

quarterly, biannually, annually, etc.). 

Coordinated engagement among Tribal 

Nations and Lessees that may be 

required would not excuse BOEM from 

meeting its responsibilities to federally 

recognized Tribes under Executive 

Order 13175. 

In addition, the proposed stipulation 

would require that the progress report 

incorporate separate lease requirements 

for the development of communication 

plans for fisheries, Tribes, and agencies, 

that would serve to guide engagement 

activities with those groups. Lastly, the 

progress report would be required to 

include an update on activities executed 

under any survey plan. 

BOEM seeks comment on this 

progress report and engagement concept 

generally. BOEM also seeks specific 

comments on how to improve the 

frequency, duration, and sustainability 

of collaborative engagement among 

these parties; and on the contents, 

timing, and review of progress reports. 

g. Uniform Layouts: BOEM seeks 

comment on whether BOEM should 

consider uniform and aligned turbine 

layouts in the Lease Areas. Would the 

establishment of uniform turbine 

layouts negate the need for vessel transit 

measures and/or areas of no surface 

occupancy? 

h. Industry Standards for 

Environmental Protection: Are there 

new industry standards (e.g., technology 

standards, vessel standards, etc.) for 

environmental protection for any phase 

of development that BOEM should 

consider? 

i. Vessel Transit: BOEM welcomes 

comments on measures to facilitate 

vessel transit and continuance of 

existing uses within the Lease Areas. 

Such measures may include areas of no 

surface occupancy where surface 

structures will not be permitted. If areas 

of no surface occupancy are warranted, 

BOEM welcomes comment on the 

preferred placement and orientation 

(e.g., length, width, etc.) that would 

facilitate continuance of existing uses. 

BOEM asks commenters to submit 

technical and scientific data in support 

of their comments. 

V. Proposed Lease Sale Deadlines and 

Milestones 

This section describes the major 

deadlines and milestones in the auction 

process from publication of this PSN to 

potential execution of the lease 

pursuant to this sale. 

a. The PSN Comment Period: 

i. Submit Comments: The public is 

invited to submit comments during this 

60-day period, which will expire on 

August 1, 2022. All comments received 

or postmarked during the comment 

period will be made available to the 

public and considered by BOEM prior to 

publication of the FSN. 

ii. Public Auction Seminar: BOEM 

will host a public seminar to discuss the 

lease sale process and the auction 

format. The time and place of the 

seminar will be announced by BOEM. 

The announcement will also be posted 

on the BOEM website at https://

www.boem.gov/renewable-energy/stateactivities/california. 

Neither registration nor RSVP is 

required to attend the auction seminar. 

iii. Submit Qualifications Materials: 

All qualification materials must be 

received by BOEM by August 1, 2022. 

This includes materials sufficient to 

establish a company’s legal, technical, 

and financial qualifications pursuant to 

30 CFR 585.106–.107. To qualify to 

participate in this lease sale, 

qualification materials would need to be 

developed in accordance with the 

guidelines available at https://

www.boem.gov/Renewable-EnergyQualification-Guidelines/. If you wish to 

protect the confidentiality of your 

comments or qualification materials, 

clearly mark the relevant sections and 

request that BOEM treat them as 

confidential. Please label privileged or 

confidential information with the 

caption ‘‘Contains Confidential 

Information’’ and consider submitting 

such information as a separate 

attachment. Treatment of confidential 

information is addressed in section XX 

entitled, ‘‘Protection of Privileged or 

Confidential Information.’’ Information 

that is not labeled as privileged or 

confidential would be regarded by 

BOEM as suitable for public release. 

b. End of PSN Comment Period to 

FSN Publication: 

i. Review Comments: BOEM will 

review all comments submitted in 

response to the PSN during the 

comment period. 

ii. Finalize Qualifications Reviews: 

Prior to the publication of the FSN, 

BOEM will complete its review of 

bidder qualification materials submitted 

during the PSN comment period. The 

final list of eligible bidders will be 

published in the FSN. 

iii. Prepare the FSN: BOEM will 

prepare the FSN by updating 

information contained in the PSN where 

appropriate. 

iv. Publish FSN: BOEM will publish 

the FSN in the Federal Register. 

c. FSN Waiting Period: During the 

period between FSN publication and the 

lease auction (i.e., minimum 30 days), 

qualified bidders would be required to 

take several steps to remain eligible to 

participate in the auction. 

i. Bidder’s Financial Form: Each 

bidder would be required to submit a 

BFF to BOEM to participate in the 

auction. The BFF would be required to 

contain each bidder’s conceptual 

strategy for each non-monetary credit 

for which the bidder wishes to be 

considered, or qualifying Lease Area 

Use CBA if applicable. Each bidder 

would be required to submit to BOEM 

its BFF no later than the date listed in 

the FSN. BOEM may consider 

extensions to this deadline if BOEM 

determines that the failure to timely 

submit a BFF was caused by events 

beyond the bidder’s control. The BFF 

will be available for download at: 

https://www.boem.gov/renewableenergy/state-activities/california. 

As proposed, once BOEM has 

processed a BFF, the bidder would log 

into pay.gov to submit a bid deposit. For 

purposes of this auction, BOEM will not 

consider BFFs submitted by bidders for 

previous lease sales. Bidders must 

submit an original BFF signed by an 

authorized signatory by mail to BOEM’s 

Pacific Regional Office for certification. 

Digital signatures affixed to the paper 

copy would be acceptable until further 

notice. 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 87, No. 104 / Tuesday, May 31, 2022 / Notices 32453 

1. Your submission should be 

accompanied with a transmittal letter on 

company letterhead. 

2. The BFF would be required to be 

executed by an authorized 

representative listed in the bidder’s 

legal qualifications. Each bidder would 

be required to sign the self-certification 

in the BFF truthfully, under threat of 

criminal penalty for false statements in 

accordance with 18 U.S.C. 1001 (fraud 

and false statements). 

3. Additional information regarding 

the BFF may be found below in section 

IX entitled, ‘‘Bidder’s Financial Form.’’ 

ii. Bid Deposit: Each qualified bidder 

would be required to submit a bid 

deposit of $5,000,000 in order to bid for 

one Lease Area. If the FSN allows 

bidders to win up to two Lease Areas 

(one per region), a bid deposit of 

$10,000,000 would be required to bid on 

two Lease Areas (one per region). Bid 

deposits would be due no later than the 

date specified in the FSN. Further 

information about bid deposits can be 

found below in section X entitled, ‘‘Bid 

Deposit.’’ 

d. Notification of Eligibility for NonMonetary Credits: BOEM will determine 

bidder eligibility for bid credits in each 

auction in which the bidder participates 

and will notify each bidder of the 

agency’s determination prior to the 

mock auction. 

e. Mock Auction: BOEM proposes to 

hold a mock auction that is open only 

to qualified bidders who have met the 

requirements and deadlines for auction 

participation, including submission of 

the bid deposit. Final details of the 

mock auction will be provided in the 

FSN. 

f. The Auction: BOEM, through its 

contractor, would conduct the auction 

as described in the FSN. The auction 

would occur no sooner than 30 days 

following publication of the FSN in the 

Federal Register. The estimated 

timeframes described in this PSN 

assume the auction would occur 

approximately 45 days after FSN 

publication. Final dates would be 

included in the FSN. BOEM would 

announce the provisional winners of the 

lease sale after the auction ends. 

g. From the Auction to Lease 

Execution: 

i. Notice and Refunds to NonWinners: Once the provisional winners 

have been announced, BOEM would 

notify the other bidders, include a 

written explanation of why they did not 

win, and return their bid deposits. 

ii. Department of Justice (DOJ) 

Review: DOJ would 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 

would send three copies of the lease to 

each winning bidder, with instructions 

on how to sign the lease. Each winning 

bidder would be required to pay the first 

year’s rent within 45 calendar days after 

receiving the lease copies. 

iv. Return the Lease: Within 10 

business days of receiving the lease 

copies, each winning bidder would be 

required to file financial assurance, pay 

any outstanding balance of its bonus 

bids (i.e., winning monetary bid less the 

applicable non-monetary bidding credit 

and bid deposit), and sign and return 

the three lease copies. A winning bidder 

would be allowed to request a deadline 

extension. BOEM could grant the 

request if BOEM determines the cause of 

the delay was beyond the winning 

bidder’s control pursuant to 30 CFR 

585.224(e). 

v. Execution of Lease: Once BOEM 

has received the signed lease copies and 

verified that all other required 

obligations have been met, BOEM 

would determine, in its discretion, 

whether to sign and execute the lease. 

VI. Withdrawal of Blocks 

BOEM reserves the right to withdraw 

all or portions of the Lease Areas prior 

to executing the leases with the winning 

bidders. 

VII. Lease Terms and Conditions 

BOEM has made available the 

proposed terms and conditions for the 

commercial leases that might be offered 

through this proposed sale. BOEM 

reserves the right to require compliance 

with additional terms and conditions 

associated with approval of a site 

assessment plan (SAP) and COP. The 

proposed leases are on BOEM’s website 

at: https://www.boem.gov/renewableenergy/state-activities/california. Each 

lease would 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’’); 

and 

5. Addendum E (‘‘Rent Schedule’’). 

Addenda A, B, and C provide detailed 

descriptions of proposed lease terms 

and conditions. Addenda D and E 

would be completed at the time of COP 

approval or approval with 

modifications. After considering 

comments on the PSN and proposed 

lease, BOEM would publish final lease 

terms and conditions in the FSN. 

a. Required Plans for Potential 

Development of Executed Leases: Under 

30 CFR 585.601, if site assessment 

activities will be conducted, the 

leaseholder would be required to submit 

a SAP within 12 months of lease 

issuance. Approval of the SAP will 

initiate the Lessee’s five-year site 

assessment term. If the Lessee intends to 

continue its commercial lease with an 

operations term, the leaseholder would 

be required to submit a COP at least six 

months before the end of the site 

assessment term. 

b. Proposed New or Revised Lease 

Stipulations: BOEM proposes to include 

or revise the following lease stipulations 

or provisions from previous commercial 

leases as follows: 

i. Commercial Fisheries: BOEM 

proposes to include a stipulation in the 

lease entitled ‘‘Commercial Fisheries,’’ 

which would contain components of 

stipulations in prior commercial leases 

issued by BOEM, including a 

requirement for a Fisheries 

Communications Plan (FCP). BOEM is 

proposing to add elements to this 

stipulation in response to its extensive 

engagement with Tribal governments, 

the fishing industry, and governmental 

agencies. Major proposed revisions 

include: (i) Identifying dock space and 

transit routes that would minimize 

space use conflicts and potential 

impacts to protected species; (ii) 

minimizing both congestion and the 

creation of obstacles that could result in 

an increased risk of entanglement; (iii) 

to the extent practicable, prioritizing 

Federal and State climate change 

adaptation strategies for fisheries; and 

(iv) requirement that the Lessee contact 

potentially affected commercial fishing 

communities prior to submitting its COP 

to discuss potential conflicts between 

seasonal fishing operations and the 

Lessee’s survey and development 

activities. 

ii. Protected Species: In May 2022, 

BOEM published a Final Humboldt 

Wind Energy Area EA, that included the 

most current Measures to Minimize 

Potential Adverse Impacts to Birds and 

Typical Mitigation Measures for 

Protected Marine Species. BOEM 

proposes to include in the leases these 

measures, or the most current version of 

these measures from either the Final 

Morro Bay Wind Energy EA, or from 

consultation processes undertaken for/ 

applicable to this lease sale, as 

appropriate. These measures for 

protecting birds and marine species are 

based upon the most up-to-date 

information. Any additional protective 

measures arising from consultation 

processes undertaken for/applicable to 

this lease sale would be incorporated 

into the leases. 


khammond on DSKJM1Z7X2PROD with NOTICES
32454 Federal Register / Vol. 87, No. 104 / Tuesday, May 31, 2022 / Notices 

iii. Native American Tribes 

Communications Plan (NATCP): BOEM 

proposes to revise the NATCP 

requirements in previous commercial 

leases to require the Lessee to work with 

BOEM and the California Native 

American Heritage Commission to 

identify Tribes with cultural and/or 

historical ties to the Lease Areas and 

invite those Tribes to participate in the 

development of the NATCP. The 

NATCP would also include protocols 

for unanticipated discovery of any 

potential pre-contact archaeological 

resource(s). 

iv. Project Labor Agreements (PLAs) 

and Supply Chain: BOEM is committed 

to a clean energy future, workforce 

development and safety, and the 

establishment of a durable domestic 

supply chain that can sustain the U.S. 

offshore wind energy industry. To 

advance this vision, BOEM is proposing 

two lease stipulations, one that would 

encourage construction efficiency for 

projects and the other that would 

contribute towards establishing a 

domestic supply chain: 

1. The first stipulation would require 

Lessees to make every reasonable effort 

to enter into a PLA covering the 

construction stage of any project 

proposed for the Lease Areas. The PLA 

provisions for the construction of an 

offshore wind project would apply to all 

contractors. 

2. The second stipulation would 

require Lessees to establish a Statement 

of Goals in which the Lessee would 

describe its plans for contributing to the 

creation of a robust and resilient U.S.- 

based offshore wind industry supply 

chain. The Lessee would be required to 

provide regular progress updates on the 

achievement of those goals to BOEM, 

and BOEM would make those updates 

publicly available. 

v. Research Access: This stipulation 

would make explicit BOEM’s 

reservation of the right to access the 

lease area for purposes of future 

research and other activities. 

vi. Archaeological Survey 

Requirements: BOEM proposes a 

modification of BOEM’s prior lease 

stipulations regarding archaeological 

survey requirements. The revised 

stipulation would require that the 

Lessee provide a description of the 

methods it uses to conduct 

archaeological surveys in support of 

Plans (i.e., SAP and/or COP), in addition 

to survey results. The Lessee would be 

required to coordinate a Tribal presurvey meeting with Tribes identified 

by BOEM and in the NATCP. In the 

post-review discovery clauses, the 

revised stipulation would require that, 

in the event of unanticipated discovery 

of a potential archaeological resource, 

the Lessee would immediately halt 

bottom-disturbing activities within the 

area of discovery by a minimum of 50 

meters (164 feet), and the avoidance 

distance must be calculated from the 

maximum discernible extent of the 

archaeological resource. The revised 

stipulation would also add a 

requirement in the post-review 

discovery clauses that the Lessee refer to 

the NATCP for additional guidance on 

notifications. 

VIII. Lease Financial Terms and 

Conditions 

This section provides an overview of 

the required annual payments and 

financial assurances under the leases. 

Please see the proposed leases for more 

information. 

a. Rent: Pursuant to 30 CFR 

585.224(b) and 585.503, the first year’s 

rent payment of $3 per acre would be 

due within 45 calendar days after the 

Lessee receives the lease copies from 

BOEM. For example, for a 69,031-acre 

lease (the size of OCS–P 0562), the rent 

payment will be $207,093 per year until 

commercial operations begin. 

Thereafter, annual rent payments would 

be due on the anniversary of the 

effective date of the lease (the ‘‘Lease 

Anniversary’’). Once commercial 

operations under the lease begin, BOEM 

would charge rent only for the portions 

of the Lease Area remaining 

undeveloped (i.e., non-generating 

acreage). 

If the Lessee submits an application 

for relinquishment of a portion of its 

leased area within the first 45 calendar 

days after receiving the lease copies 

from BOEM and BOEM approves that 

application, no rent payment would be 

due on the relinquished portion of the 

Lease Area. Later relinquishments of 

any portion of the Lease Area would 

reduce the Lessee’s rent payments 

starting in the year following BOEM’s 

approval of the relinquishment. 

The Lessee also would be required to 

pay rent for any project easement 

associated with the lease. Rent would 

commence on the date that BOEM 

approves the COP (or modification 

thereof) that describes the project 

easement as outlined in 30 CFR 

585.500(a)(5) and 585.507(b). Annual 

rent for a project easement is $5 per 

acre, subject to a minimum of $450 per 

year. 

b. Operating Fee: For purposes of 

calculating the initial annual operating 

fee payment under 30 CFR 585.506, 

BOEM would apply 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 would be prorated to 

reflect the period between the 

commencement of commercial 

operations and the Lease Anniversary. 

The initial annual operating fee 

payment would be due within 45 days 

of the commencement of commercial 

operations. Thereafter, subsequent 

annual operating fee payments would be 

due on or before the Lease Anniversary. 

The subsequent annual operating fee 

payments would 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 

would be the product of the project’s 

annual nameplate capacity, the total 

number of hours in the year (8,760), the 

capacity factor, and the annual average 

price of electricity derived from a 

regional wholesale power price index. 

For example, the annual operating fee 

for a 976 megawatt (MW) wind facility 

operating at a 40 percent capacity (i.e., 

capacity factor of 0.4) with a regional 

wholesale power price of $40 per 

megawatt hour (MWh) and an operating 

fee rate of 0.02 would be calculated as 

follows: 

i. Operating Fee Rate: The operating 

fee rate would be the share of imputed 

wholesale market value of the projected 

annual electric power production due to 

ONRR as an annual operating fee. For 

the Lease Areas, BOEM proposes to set 

the fee rate at 0.02 (i.e., 2 percent) for 

the entire life of commercial operations. 

ii. Nameplate Capacity: Nameplate 

capacity would be the maximum rated 

electric output, expressed in MW, that 

the turbines of the wind facility under 

commercial operations can produce at 

their rated wind speed, as designated by 

the turbine’s manufacturer. For 


khammond on DSKJM1Z7X2PROD with NOTICESEN31MY22.223</GPH>

hrs $40 Annual Operating Fee= 976 MW x 8,760--x 0.4 x MWhPowerPrice x 0.02 = $2,736,820.22 

year 
Federal Register / Vol. 87, No. 104 / Tuesday, May 31, 2022 / Notices 32455 

example, if the Lessee installed 100 

turbines, and each is rated by the 

manufacturer at 12 MW, the nameplate 

capacity of the wind facility would be 

1,200 MW. 

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. This factor is represented as a 

decimal between zero (0) and one (1). 

There are several reasons why the 

amount of power delivered is less than 

the theoretical 100 percent of capacity. 

For a wind facility, the capacity factor 

is mostly determined by the availability 

of wind. Transmission line loss and 

downtime for maintenance or other 

purposes also affect the capacity factor. 

BOEM proposes to set the capacity 

factor at 0.4 (i.e., 40 percent) for the year 

in which the commercial operation date 

occurs and for the first six 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 five 

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 five years 

thereafter. 

iv. Wholesale Power Price Index: 

Under 30 CFR 585.506(c)(2)(i), the 

wholesale power price, expressed in 

dollars per MWh, would be determined 

at the time each annual operating fee 

payment is due. For the leases offered 

in this sale, BOEM proposes to use the 

annual average of CAISO North of Path 

15 (NP15) market hub price. Aggregated 

data from commercial subscription 

services such as S&P Global Market 

Intelligence Platform or Hitachi ABB 

Velocity Suite can also be used and may 

be posted by BOEM for reference. 

c. Financial Assurance: Within 10 

business days after receiving the lease 

copies and pursuant to 30 CFR 585.515– 

.516, each provisional winner would be 

required to provide an initial leasespecific bond or other BOEM-approved 

financial assurance instrument in the 

amount of $100,000. BOEM encourages 

the provisionally winning bidders to 

discuss the financial assurance 

instrument requirements with BOEM as 

soon as possible after the auction has 

concluded. 

BOEM would 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 would be determined on a 

case-by-case basis. 

The financial terms described above 

can be found in Addendum ‘‘B’’ of the 

lease, which is available at: https://

www.boem.gov/renewable-energy/stateactivities/california. 

IX. Bidder’s Financial Form 

Each bidder would be required to fill 

out the BFF referenced in this PSN. A 

copy of the proposed form is available 

at: https://www.boem.gov/renewableenergy/state-activities/california. BOEM 

recommends that each bidder designate 

an email address in its BFF that the 

bidder would then use to create an 

account in pay.gov (if it has not already 

done so). BOEM would not consider 

previously submitted BFFs for previous 

lease sales to satisfy the requirements of 

this auction. BOEM may consider BFFs 

submitted after the deadline set in the 

FSN if BOEM determines that the failure 

to timely submit the BFF was caused by 

events beyond the bidder’s control. 

BOEM would only accept an original, 

executed paper copy of the BFF. The 

BFF would be required to be executed 

by an authorized representative listed in 

the qualification package on file with 

BOEM. 

X. Bid Deposit 

Each qualified bidder would be 

required to submit a bid deposit no later 

than the date listed in the FSN. 

Typically, this deadline is 

approximately 30 calendar days after 

the publication of the FSN. BOEM may 

consider extensions to this deadline 

only if BOEM determines that the 

failure to timely submit the bid deposit 

was caused by events beyond the 

bidder’s control. 

Following the auction, bid deposits 

would be applied against the winning 

bid and other obligations owed to 

BOEM. If a bid deposit exceeds that 

bidder’s total financial obligation, 

BOEM would refund the balance of the 

bid deposit to the bidder. BOEM would 

refund bid deposits to the other bidders 

once BOEM has announced the 

provisional winner. 

If BOEM offers a lease to a 

provisionally winning bidder and that 

bidder fails to timely return the signed 

lease, establish financial assurance, or 

pay the balance of its bid, BOEM would 

retain the bidder’s $5,000,000 bid 

deposit for one Lease Area or 

$10,000,000 bid deposit for two Lease 

Areas (one per region). In such a 

circumstance, BOEM would reserve the 

right to offer a lease to the next highest 

bidder as determined by BOEM. 

XI. Minimum Bid 

The minimum bid is the lowest bid 

BOEM would accept as a winning bid, 

and it is where BOEM would start the 

bidding in the auction. BOEM proposes 

a minimum bid of $100.00 per acre for 

this lease sale. See chart in section 

XII.(b) below for total minimum bids for 

each lease to be offered in these sales. 

XII. Auction Procedures 

a. Multiple-Factor Bidding Auction: 

As authorized under 30 CFR 

585.220(a)(4) and 585.221(a)(6), BOEM 

proposes to use a multiple-factor 

bidding auction for this lease sale. 

Under BOEM’s proposal, the bidding 

system for this lease sale would be a 

multiple-factor combination of 

monetary and non-monetary factors. 

The bid made by a particular bidder in 

each round would represent the sum of 

a monetary (cash) amount and a nonmonetary factor (bidding credit). BOEM 

proposes to start the auction using the 

minimum bid price for the Lease Areas 

and to increase that price incrementally 

until no more than one active bidder per 

Lease Area remains in the auction. 

b. The Auction: Using an online 

bidding system to host the auction, 

BOEM would start the bidding for 

Leases OCS–P 0561 through 0565, as 

described below. 

Lease area name Lease area ID Acres Minimum bid 

North Coast Region: 

Humboldt NE ........................................................................................................................ OCS–P 0561 63,338 $6,333,800 

Humboldt SW ....................................................................................................................... OCS–P 0562 69,031 6,903,100 

Central Coast Region: 

Morro Bay NW ...................................................................................................................... OCS–P 0563 80,062 8,006,200 

Morro Bay C ......................................................................................................................... OCS–P 0564 80,418 8,041,800 

Morro Bay E ......................................................................................................................... OCS–P 0565 80,418 8,041,800 

Total ............................................................................................................................... ........................ 373,268 ........................


khammond on DSKJM1Z7X2PROD with NOTICES
32456 Federal Register / Vol. 87, No. 104 / Tuesday, May 31, 2022 / Notices 

The precise auction process will 

depend on limitations, to be established 

in the FSN, on the number of Lease 

Areas a bidder can bid for and win. 

BOEM is proposing that bidders will be 

able to bid for at most one Lease Area 

in the offered Central Coast Region at a 

time and for at most one Lease Area in 

the offered North Coast Region at a time. 

Ultimately, a bidder could win a 

maximum of one Lease Area in the 

Central Coast Region and one Lease 

Area in the North Coast Region, as 

described in section XIII.(b)(i), below. 

BOEM also requests comments on an 

alternative limitation, whereby bidders 

would be permitted to bid for at most 

one Lease Area in total at a time, and 

ultimately win at most one Lease Area 

in total, as described in section 

XIII.(b)(ii), below. 

i. If bidders are allowed to bid for and 

win one Lease Area per region: The two 

regions (North Coast and Central Coast) 

would be offered in two separate 

auctions that would run simultaneously. 

A bidder would need to indicate in its 

BFF which region’s auction it is 

entering (or select both) and it would 

need to submit a deposit for each 

region’s auction that it is entering. 

Bidders eligible to bid in each auction 

must select the correct region’s page 

from the auction homepage before 

placing a bid. A bidder’s eligibility is 

region-specific. There would be no 

switching between regions. Thus, if a 

bidder elects to bid in only one region, 

it may not bid in the other region at any 

time in the auction. Once a bidder 

places an exit bid in a region (or submits 

no bid in the region at all, in a round 

when the bidder is eligible to bid), it 

would become ineligible to continue to 

bid in that region. 

Alternatively, BOEM is considering 

administering the auction as described 

in section XIII.(b)(ii) below. 

ii. If bidders are allowed to bid for 

and win only one Lease Area: All of the 

Lease Areas would be offered in a single 

auction, and there would be no 

distinctions made between the North 

Coast and Central Coast Regions within 

the auction process. A bidder would not 

be required to select in its BFF the 

region in which it is bidding and would 

supply a single deposit. Under this 

proposal, a bidder could bid for at most 

one Lease Area at a time and ultimately 

win at most one Lease Area, but a 

bidder could switch its bids among 

Lease Areas between rounds. 

iii. Regardless of whether BOEM 

ultimately structures the lease sale as 

described in (i) or (ii), above, BOEM 

proposes to apply the following auction 

rules: Each auction would be conducted 

in a series of rounds. At the start of each 

round, BOEM would state an asking 

price for each Lease Area. If a bidder is 

willing to meet that asking price for one 

of the Lease Areas, it would indicate its 

intent by submitting a bid equal to the 

asking price. A bid at the full asking 

price is referred to as a ‘‘live bid.’’ To 

participate in the next round of the 

auction, a bidder would be required to 

have submitted a live bid for one of the 

Lease Areas (or have a carried-forward 

bid) in each previous round. 

As long as there are two or more live 

bids (including carried-forward bids) for 

at least one of the Lease Areas in the 

given auction, the auction would move 

to the next round. BOEM would raise 

the asking price for each Lease Area that 

received two or more live bids in the 

previous round. Asking price 

increments would be determined based 

on several factors, including (but not 

necessarily limited to) the expected time 

needed to conduct the auction and the 

number of rounds that have already 

occurred. BOEM would reserve the right 

to increase or decrease bidding 

increments as it deems appropriate. If 

there was only one live bid (including 

carried-forward bids) or no live bids for 

a Lease Area in the previous round, the 

asking price would not be increased. A 

bid would automatically be carried 

forward if it was uncontested in the 

previous round, and the bidder who 

placed the uncontested bid would not 

be permitted to place any other bid in 

the current round of the auction. 

A bidder that submitted a contested 

live bid in the previous round would be 

free to bid on any Lease Area in the 

given auction in the next round, at the 

new asking prices. 

If a bidder decides to stop bidding 

before the final round of the auction, 

there could be circumstances in which 

the bidder could nonetheless win a 

lease. For example, that bidder could be 

ultimately selected in the winner 

determination that is described in detail 

below, or the winning bidder might be 

disqualified at the award stage of the 

auction. In these circumstances, the 

bidder would be bound by its bid and 

thus obligated to pay the full bid 

amount. Bidders therefore might be 

bound by any of their bids up to and 

until the point at which the auction 

results are finalized. 

Between rounds, BOEM would 

disclose to all bidders that submitted 

bids in the previous round: (1) The 

number of live bids (including carriedforward bids) for each Lease Area in the 

previous round of the auction (i.e., the 

level of demand at the asking price); and 

(2) the asking price for each Lease Area 

in the upcoming round of the auction. 

In any round after the first round, a 

bidder would be allowed to submit an 

‘‘exit bid’’ only for the same Lease Area 

as the bidder’s contested live bid in the 

previous round. An exit bid is a bid that 

is greater than the previous round’s 

asking price, but less than the current 

round’s asking price. An exit bid is not 

a live bid, and it represents the final bid 

that a bidder may submit in the given 

auction. A bidder would not be allowed 

to submit both an exit bid on one of the 

Lease Areas and a live bid on a different 

Lease Area in the given auction. During 

the auction, the exit bid would be seen 

only by BOEM and not by other bidders. 

An auction would end when a round 

occurs in which each of the Lease Areas 

in the auction receives one or zero live 

bids (including carried-forward bids), 

regardless of the number of exit bids on 

any Lease Area. If the North Coast 

Region and Central Coast Region are 

offered in two separate auctions, then 

one of these separate auctions may end 

before the other. After the bidding ends, 

BOEM would determine the 

provisionally winning bid for each 

Lease Area in the given auction by the 

following two-stage procedure, applying 

the procedure separately to each auction 

if there are two separate auctions. 

In stage one, the highest bid (live bid 

or exit bid) received for each Lease Area 

in the final round would be designated 

the provisionally winning bid, if there is 

a single highest bid. In the event of a tie 

(i.e., if two or more bidders submitted 

identical highest exit bids for the same 

Lease Area), the selection of one of the 

highest exit bids would be deferred 

until stage two. 

In stage two, BOEM would assign to 

provisionally winning bidders all Lease 

Areas that were not so assigned to 

provisionally winning bidders in stage 

one (either because a Lease Area 

received two or more identical highest 

exit bids in the final round or because 

it received no bids in the final round). 

BOEM would, in stage two, consider 

bids from all bidding rounds for Lease 

Areas that were not assigned in stage 

one from bidders not assigned a Lease 

Area in stage one. BOEM would select 

the combination of such bids that 

maximizes the sum of the bid amounts 

of the selected bids, subject to the 

following constraints: (1) Each Lease 

Area that received multiple highest exit 

bids in the final round (but no live bid) 

must be assigned to one of the bidders 

that submitted the highest exit bid; (2) 

at most one bid from each bidder can be 

selected; and (3) at most one bid for 

each Lease Area can be selected. If there 

is a unique combination of bids that 

solves this maximization problem, then 

these bids would be deemed to be the 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 87, No. 104 / Tuesday, May 31, 2022 / Notices 32457 

remaining provisionally winning bids. If 

two or more combinations of bids tie by 

producing the same maximized sum of 

bid amounts, the auction system would 

select one of the combinations by use of 

pseudorandom numbers. The 

provisional winners would pay the 

amounts of their provisionally winning 

bids, or risk forfeiting their bid deposits. 

A provisional winner will be 

disqualified if it is subsequently found 

to have violated auction rules or BOEM 

regulations, or otherwise engaged in 

conduct detrimental to the integrity of 

the competitive auction. If a bidder 

submits a bid that BOEM determines to 

be a provisionally winning bid, the 

bidder must sign the applicable lease 

documents, establish financial 

assurance, and submit the balance (if 

any) of its bonus bid (i.e., winning 

monetary bid less the applicable nonmonetary bidding credit and bid 

deposit) within 10 business days of 

receiving the lease copies, pursuant to 

30 CFR 585.224. BOEM would reserve 

the right not to issue the lease to a 

provisionally winning bidder if that 

bidder fails to: Timely return the signed 

lease form, establish adequate financial 

assurance, pay the balance of its 

winning bid, or otherwise fail to comply 

with applicable regulations or the terms 

of the FSN. In that case, the bidder 

would forfeit its bid deposit. 

BOEM would publish the provisional 

winners and the provisionally winning 

bid amounts shortly after the conclusion 

of the sale. Full bid results, including 

round-by-round results of the entire 

sale, including exit bids, would be 

published on BOEM’s website after 

review of the results and announcement 

of the provisional winners. 

c. Additional Information Regarding 

the Auction Format: 

i. Authorized Individuals and Bidder 

Authentication: A company that is 

eligible to participate in the auction 

would identify on its BFF up to three 

individuals who would be authorized to 

bid on behalf of the company, including 

their names, business telephone 

numbers, and email addresses. After 

BOEM processes the bid deposits, the 

auction contractor would send several 

emails to the authorized individuals. 

The emails would contain user login 

information and instructions for 

accessing the bidder manual for the 

auction system and the auction system 

technical supplement (ASTS). 

The auction system would require 

software tokens for two-factor 

authentication. To set up the tokens, 

authorized individuals would download 

an app onto their smartphone or tablet 

with a recent operating system. One of 

the emails sent to authorized 

individuals would contain instructions 

for installing the app and the credentials 

needed to activate the software token. A 

short telephone conversation with the 

auction contractor could also be needed 

to use the credentials. The login 

information, along with the tokens, 

would be tested during the mock 

auction. If an eligible bidder failed to 

submit a bid deposit or did not 

participate in the auction, BOEM would 

de-activate that bidder’s tokens and 

login information. 

ii. Timing of Auction: The FSN will 

provide specific information regarding 

when bidders can enter the auction 

system and when the auction will start. 

iii. Messaging service: BOEM and the 

auction contractors would use the 

auction platform messaging service to 

keep bidders informed on issues of 

interest during the auction. For 

example, BOEM could change the 

schedule at any time, including during 

the auction. If BOEM changes the 

schedule during an auction, it would 

use the messaging feature to notify 

bidders that a revision has been made 

and will direct bidders to the relevant 

page. BOEM would also use the 

messaging system for other updates 

during the auction. 

Bidders could place bids at any time 

during the round. At the top of the 

bidding page, a countdown clock shows 

how much time remains in the round. 

Bidders would have until the scheduled 

time to place bids. Bidders should do so 

according to the procedures described 

in the FSN and the ASTS. Information 

about the round results would be made 

available only after the round has 

closed, so there would be no strategic 

advantage to placing bids early or late 

in the round. 

The ASTS elaborates on the auction 

procedures described in this PSN. In the 

event of any inconsistency between the 

Bidder Manual, the ASTS, and the FSN, 

the FSN would be controlling. 

iv. Alternate Bidding Procedures: It 

would be the responsibility of the 

bidder to ensure it has a working 

internet connection and backup 

procedures in place in case its internet 

connection is disrupted during the 

auction. Such backup procedures may 

include redundant internet connections, 

multiple individuals authorized to place 

bids on behalf of the company, 

geographically dispersing individuals 

who are authorized to bid (with 

different internet connections), or 

placing bids using a mobile data 

connection. The bidder would be 

responsible for testing its backup 

procedures ahead of time. This could be 

done during the mock auction, for 

example. 

XIII. Rejection or Non-Acceptance of 

Bids 

BOEM would reserve the right and 

authority to reject any and all bids that 

do not satisfy the requirements and 

rules of the auction, the FSN, or 

applicable regulations and statutes. 

XIV. Anti-Competitive Review 

Bidding behavior in this sale would 

be subject to Federal antitrust laws. 

Following the auction, but before the 

acceptance of bids and the issuance of 

the lease, BOEM would ‘‘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 

would not be an absolute defense to 

violations of antitrust laws. 

Anti-competitive behavior 

determinations would be fact-specific. 

However, such behavior could manifest 

itself in several different ways, 

including, but not limited to: 

1. An express or tacit agreement 

among potential bidders not to bid in an 

auction, or to bid a particular price; 

2. An agreement among potential 

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 

could 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/business-resources 

and consult legal counsel. 

XV. Process for Issuing the Lease 

Once all post-auction reviews have 

been completed to BOEM’s satisfaction, 

BOEM would issue three unsigned 

copies of the lease to each provisionally 

winning bidder. Within 10 business 

days after receiving the lease copies, the 

provisionally winning bidders would be 

required to: 

1. Sign and return the lease copies on 

the bidder’s behalf; 

2. File financial assurance, as required 

under 30 CFR 585.515–537; and 


khammond on DSKJM1Z7X2PROD with NOTICES
32458 Federal Register / Vol. 87, No. 104 / Tuesday, May 31, 2022 / Notices 

3. Pay by electronic funds transfer 

(EFT) the balance (if any) of the bonus 

bid (winning monetary bid less the 

applicable non-monetary bidding credit 

and bid deposit). BOEM would require 

bidders to use EFT procedures (not 

pay.gov, the website bidders used to 

submit bid deposits) for payment of the 

balance of the bonus bid, following the 

detailed instructions contained in the 

‘‘Instructions for Making Electronic 

Payments’’ available on BOEM’s website 

at: https://www.boem.gov/renewableenergy/state-activities/eft-paymentinstructions-ca. 

BOEM would not execute the lease 

until the three requirements above have 

been satisfied. BOEM could extend the 

10 business-day deadline if BOEM 

determines the delay was caused by 

events beyond the provisionally 

winning bidder’s control. 

If a 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 provisionally winning bidder 

would forfeit its bid deposit. Also, in 

such a case, BOEM reserves the right to 

identify the next highest bid for that 

Lease Area submitted during the lease 

sale by a bidder who has not won one 

of the other Lease Areas and to offer the 

lease to that bidder pursuant to its bid. 

Within 45 calendar days after 

receiving the lease copies, each 

provisionally winning bidder would be 

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 

would be required to be made following 

the detailed instructions contained in 

the ‘‘Instructions for Making Electronic 

Payments,’’ available on BOEM’s 

website at: https://www.boem.gov/ 

renewable-energy/state-activities/ 

california. 

XVI. Non-Procurement Debarment and 

Suspension Regulations 

Pursuant to 43 CFR part 42, subpart 

C, an OCS renewable energy Lessee 

would be required to comply with the 

Department of the Interior’s nonprocurement debarment and suspension 

regulations at 2 CFR parts 180 and 1400. 

The Lessee would also be required to 

communicate this requirement to 

persons with whom the Lessee does 

business relating to this lease by 

including this term as a condition in 

their contracts and other transactions. 

XVII. Final Sale Notice 

The development of the FSN would 

be informed through the EAs, related 

consultations, and comments received 

during the PSN comment period. The 

FSN will provide the final details 

concerning the offering and issuance of 

an OCS commercial wind energy lease 

in the Lease Areas offshore California. 

The FSN will be published in the 

Federal Register at least 30 days before 

the lease sale is conducted and will 

provide the date and time of the 

auction. 

XVIII. Changes to Auction Details 

The Regional Director of BOEM’s 

Pacific Regional Office has the 

discretion to change any auction detail 

specified in the FSN, including the date 

and time, if s/he deems that 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, act 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 would notify all 

qualified bidders via email, phone, and 

BOEM’s website at: https://

www.boem.gov/renewable-energy/stateactivities/california. Bidders should call 

(703) 787–1121 if they have concerns. 

XIX. Appeals 

The bid rejection procedures are 

provided in BOEM’s regulations at 30 

CFR 585.225 and 585.118(c). Under 30 

CFR 585.225: 

(a) If BOEM rejects your bid, BOEM 

will provide a written statement of the 

reasons and will refund any money 

deposited with your bid, without 

interest. 

(b) You may ask the BOEM Director 

for reconsideration, in writing, within 

15 business days of bid rejection, under 

30 CFR 585.118(c)(1). The Director will 

send you a written response either 

affirming or reversing the rejection. 

The procedures for requesting 

reconsideration of a bid rejection are 

described in 30 CFR 585.118(c). 

XX. Public Participation 

BOEM does not consider anonymous 

comments; please include your name 

and address as part of your comment. 

You should be aware that your entire 

comment, including your name, 

address, and any other personal 

identifiable information (PII) included 

in your comment, may be made publicly 

available. All submissions from 

identified individuals, businesses, and 

organizations may be available for 

public viewing on regulations.gov. 

In order for BOEM to withhold from 

disclosure your PII, you must identify 

any information contained in your 

comment that, if released, would 

constitute a clearly unwarranted 

invasion of your personal privacy. You 

must also briefly describe any possible 

harmful consequences of the PII 

disclosure, such as embarrassment, 

injury, or other harm. BOEM is unable 

to guarantee that your PII will be 

protected from public disclosure 

because a court may determine that the 

benefits of disclosure about who may 

influence public policy outweigh 

possible harms. 

XXI. Protection of Privileged or 

Confidential Information 

BOEM will protect privileged or 

confidential information that you 

submit consistent with the Freedom of 

Information Act (FOIA) and 30 CFR 

585.113. Exemption 4 of FOIA applies 

to ‘‘trade secrets and commercial or 

financial information obtained from a 

person’’ that is privileged or 

confidential (5 U.S.C. 552(b)(4)). If you 

wish to protect the confidentiality of 

such information, clearly mark it 

‘‘Contains Privileged or Confidential 

Information’’ and consider submitting 

such information as a separate 

attachment. BOEM will not disclose 

such information, except as required by 

FOIA. Information that is not labeled as 

privileged or confidential may be 

regarded by BOEM as suitable for public 

release. Further, BOEM will not treat as 

confidential aggregate summaries of 

otherwise non-confidential information. 

a. Access to Information (54 U.S.C. 

307103): BOEM is required, after 

consultation with the Secretary of the 

Interior, to withhold the location, 

character, or ownership of historic 

resources if it determines that disclosure 

may, among other things, cause a 

significant invasion of privacy, risk 

harm to the historic resources, or 

impede the use of a traditional religious 

site by practitioners. Tribal entities and 

other interested parties should designate 

information that they wish to be held as 

confidential and provide the reasons 

why BOEM should do so. 

(Authority: 43 U.S.C. 1337(p)); 30 CFR 

585.211 and 585.216) 

Amanda Lefton, 

Director, Bureau of Ocean Energy 

Management. 

[FR Doc. 2022–11537 Filed 5–27–22; 8:45 am] 

BILLING CODE 4310–MR–P 


khammond on DSKJM1Z7X2PROD with NOTICES