Federal Register - November 1, 2021
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Federal Register / Vol. 86, No. 208 / Monday, November 1, 2021 / Notices
IV. Questions for Stakeholders Stakeholders are encouraged to comment on any matters related to this lease sale that are of interest or concern to them. 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:
BOEM is requesting comment on the number of leases that should be offered within the Lease Area, the size and orientation of the Lease Area, as well as any portions of the Lease Area that should be prioritized for inclusion or exclusion from this lease sale or future lease sales.
b. Transit corridors: BOEM welcomes comments on the potential need for including defined transit corridors within the proposed Lease Area and the degree to which such corridors might meet potential users needs.
c. What existing uses would be affected by the development of the proposed Lease Area? If transit corridors are warranted, what would be the preferred placement and orientation length, width, etc. that would facilitate continuance of existing uses? BOEM
asks commenters to submit technical and scientific data in support of their comments.
d. Benefits to 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 and building a clean energy economy and making environmental justice part of every agencys mission.
To the extent of its statutory and regulatory authorities, BOEM is considering lease stipulations to ensure communities, particularly underserved communities, are engaged early and often throughout the offshore wind energy development process and to encourage direct investments in underserved communities that include, but are not limited to:
i. Workforce training and development.
ii. contracting with and supporting the development of minorityand women-owned businesses.
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iii. programs that promote and deliver environmental justice.
BOEM invites comment on the appropriate mechanisms, evaluation metrics, and valuation of these additional lease requirements.
Commenters are encouraged to describe how these or similar measures would further development of the proposed Lease Area and the purposes of OCS
Lands Act. BOEM requests commenters provide references to any studies that support their recommendations.
e. Bidding credits: As authorized under 30 CFR 585.220a4 and 585.221a6, BOEM proposes to use a multiple-factor auction format, with a multiple-factor bidding system, for this lease sale. Under this system, BOEM
would consider a combination of a monetary bid and bidding credits in determining the outcome of the auction.
BOEM would appoint a panel of BOEM
employees to review the non-monetary component and to verify the results of the lease sale. BOEM would reserve the right to change the composition of this panel at any time.
i. The proposed bidding credit would allow bidders to receive a credit of up to 20 percent off their winning bid in exchange for financial commitments to a workforce training program or to development of a domestic supply chain. To qualify, the winning bidder would be required to financially commit at least 80 percent of the bidding credit value toward a workforce training program or development of a domestic supply chain. For example, a winning bidder with a high bid of $31.25 million could receive a credit of $6.25 million toward their winning bid in exchange for a $5 million 80 percent of $6.25
million commitment to a workforce training or development of the domestic supply chain. Bidders could choose to limit their commitment 20 percent of bid up to $X.0 million or simply commit to a bidding credit worth 20
percent of their high bid.
ii. The qualifying programs for the workforce training credit would contribute to well-trained personnel pursuant to congressional policy under 43 U.S.C. 13326, which states that operations on the OCS should be conducted in a safe manner by welltrained personnel. Workforce training would also promote expeditious and orderly development as called for by 43 U.S.C. 13323.
iii. The qualifying programs for the domestic supply chain credit would contribute to the development of a domestic supply chain, which would facilitate congressional policy set forth in 43 U.S.C. 13323 to promote
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expeditious and orderly development on the OCS.
iv. Bidders who are interested in pursuing bidding credits would be able to choose to commit to workforce training programs, domestic supply chain initiatives, or a combination of both. Payment fulfilling the commitment could be deferred until submission of the facility design report FDR to BOEM. Documentation of the lessees contribution and of how the commitment would benefit workforce training or the domestic supply chain would be due no later than the lessees first FDR. By deferring the payment until the FDR, the lessee would be able to identify programs or recipients with the greatest potential to expedite or facilitate orderly OCS renewable energy development.
v. Examples of programs that would qualify for the workforce training credit include specific job and workforce training, union apprenticeships, labor management training partnerships, stipends for workforce training, or other technical training programs focused on providing skills needed for the construction, maintenance, or operation of offshore wind energy projects. BOEM
encourages lessees to maximize training opportunities for individuals from underserved communities.
vi. Examples of programs that would qualify for the domestic supply chain credit include commitments to technical assistance grants to help U.S.
manufacturers re-tool or certify e.g., ISO9001 for offshore wind manufacturing, a non-equity investment in the development of a Jones Actcompliant wind turbine installation vessel, a bonding support reserve fund accessed by disadvantaged businesses, or other non-equity contributions to efforts to build a U.S. domestic supply chain supporting the offshore wind industry. BOEM encourages lessees to maximize supply chain opportunities for disadvantaged business enterprises.
Commenters are encouraged to describe how these or similar measures would further development of the proposed Lease Area and the purposes of OCS
Lands Act. BOEM requests commenters provide references to any studies that support their recommendations.
vii. Documentation: If a lease is awarded pursuant to a winning bid that includes the workforce training or supply chain development commitment or both, the lessee would be required to provide written documentation to BOEM demonstrating payment of the full commitment no later than submission of the lessees first FDR.
viii. Enforcement: The amount and conditions of the commitment would be
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