[Federal Register Volume 75, Number 79 (Monday, April 26, 2010)]
[Notices]
[Pages 21653-21657]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-9610]
[[Page 21653]]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
[Docket No. MMS-2010-OMM-0017]
Commercial Leasing for Wind Power on the Outer Continental Shelf
(OCS) Offshore Delaware--Request for Interest (RFI)
AGENCY: Minerals Management Service, Interior.
ACTION: RFI in renewable energy leasing offshore Delaware, and
invitation of comments from interested and affected parties.
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SUMMARY: The Minerals Management Service (MMS) invites submissions
describing interest in obtaining one or more commercial leases for the
construction of a wind energy project(s) on the OCS offshore Delaware.
The MMS will use responses to this RFI to enable MMS to gauge specific
interest in commercial development of OCS wind resources in the area
described, as required by 43 U.S.C. 1337(p)(3). Parties wishing to
obtain a commercial lease for a wind energy project should submit
detailed and specific information as described below in the section
entitled, ``Required Indication of Interest Information.'' Also, with
this announcement the MMS invites all interested and affected parties
to comment and provide information--including information on
environmental issues and concerns--that will be useful in the
consideration of the area of interest for commercial wind energy
leases.
This RFI is published pursuant to subsection 8(p) of the OCS Lands
Act, as amended by section 388 of the Energy Policy Act of 2005 (EPAct)
(43 U.S.C. 1337(p)(3)) and the implementing regulations at 30 CFR Part
285.
The area of interest rests between the incoming and outgoing
shipping routes for Delaware Bay. The geographic extent was selected
based on preliminary indications of interest from developers in
response to Delmarva Power's Request for Proposals (RFP) in 2006 and
through consultation with the MMS Delaware OCS Renewable Energy Task
Force. A detailed description of the area of interest is found later in
this notice.
DATES: The MMS must receive your submission indicating your interest in
this potential commercial leasing area no later than June 25, 2010 for
your submission to be considered. The MMS requests comments or other
submissions of information by this same date. We will consider only the
submissions we receive by that time.
Submission Procedures: You may submit your indications of interest,
comments, and information by one of two methods:
1. Federal eRulemaking Portal: http://www.regulations.gov. Under
the tab ``More Search Options,'' click ``Advanced Docket Search,'' then
select ``Minerals Management Service'' from the agency drop-down menu,
then click ``submit.'' In the Docket ID column, select MMS-2010-OMM-
0017 to submit public comments and to view supporting and related
materials available for this rulemaking. Information on using
Regulations.gov, including instructions for accessing documents,
submitting comments, and viewing the docket after the close of the
comment period, is available through the site's ``User Tips'' link;
2. By mail, sending your indications of interest, comments, and
information to the following address: Minerals Management Service,
Office of Offshore Alternative Energy Programs, 381 Elden Street, Mail
Stop 4090, Herndon, VA 20170.
FOR FURTHER INFORMATION CONTACT: Erin C. Trager, Projects and
Coordination Branch, Minerals Management Service, Office of Offshore
Alternative Energy Programs, 381 Elden Street, Mail Stop 4090, Herndon,
Virginia 20170-4817; telephone (703) 787-1223.
SUPPLEMENTARY INFORMATION:
Purpose of the Request for Interest
The OCS Lands Act requires MMS to award leases competitively,
unless MMS makes a determination that there is no competitive interest
(43 U.S.C. 1337(p)(3)). This RFI is a preliminary step in the leasing
process and the responses to it will assist MMS in determining if there
is competitive interest in the area described herein on the OCS off the
coast of Delaware. If, following this RFI, MMS determines that there is
no competitive interest in this area off the coast of Delaware, MMS may
proceed with the noncompetitive lease process pursuant to 30 CFR
285.230 through 285.232 of the Renewable Energy and Alternate Uses of
Existing Facilities on the Outer Continental Shelf (REAU) rulemaking.
If, following this RFI, MMS determines that there is competitive
interest in the area of interest, MMS may proceed with the competitive
lease process set forth under 30 CFR 285.211 through 285.225. Whether
the leasing process is competitive or noncompetitive, it will include
opportunities for the public to provide input as well as a thorough
environmental review, and will be conducted in conformance with all
applicable laws.
Parties other than those interested in obtaining a commercial lease
are welcome to submit comments in response to this RFI. Additionally,
MMS has formed a Delaware OCS Renewable Energy Task Force for
coordination with affected Federal agencies and State, local, and
Tribal governments throughout the leasing process. Task Force members
and meeting materials are available on the MMS Web site at: http://www.mms.gov/offshore/RenewableEnergy/stateactivities.htm#Delaware.
Background
Energy Policy Act of 2005
The EPAct amended the OCS Lands Act by adding subsection 8(p) that
authorizes the Secretary of the Interior to grant a lease, easement, or
right-of-way (ROW) on the OCS for activities that are not otherwise
authorized by law and that produce or support the production,
transportation, or transmission of energy from sources other than oil
or gas. The EPAct also required the issuance of regulations to carry
out the new authority pertaining to renewable energy on the OCS. The
Secretary delegated the authority to issue leases, easements, and ROWs
and to promulgate regulations to the Director of MMS.
Interim Policy
After the passage of EPAct, the MMS created and published an
Interim Policy (IP) to allow the issuance of leases to assess the
renewable energy resource potential on the OCS and evaluate new
technology. The IP governed the issuance of leases for the installation
of offshore data collection and technology testing facilities on the
OCS until the effective date of the REAU rule. Leases issued under the
IP have terms of five years and confer no preferential right to
acquire, develop, or operate commercially any renewable energy project
on the OCS.
The IP lease issuance process began on November 6, 2007, when MMS
published in the Federal Register a Request for Information and
Nominations for IP leases. Subsequently, MMS published a listing of the
locations described in the responses to the Request for Information and
Nominations in the Federal Register to determine if there was
competitive interest in leasing the proposed areas pursuant to the IP.
After considering responses to the second Federal Register notice, MMS
determined that there was no
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competitive interest in any of the sites and decided to proceed with a
noncompetitive leasing process. A single area on the OCS 14 miles
offshore was nominated off the coast of Delaware by one developer. The
MMS received an application for the construction of meteorological
towers and other site assessment activities on the OCS for this area
from Bluewater Wind Delaware LLC. The MMS executed an IP lease on
November 1, 2009, with the installation of meteorological towers
anticipated to begin in the summer of 2010.
Renewable Energy and Alternate Use Rulemaking
The MMS began the REAU rulemaking process by issuing an Advance
Notice of Proposed Rulemaking on December 30, 2005, (70 FR 250 December
30, 2005). The MMS began the preparation of a Programmatic
Environmental Impact Statement (PEIS), analyzing the environmental
consequences of establishing a REAU program, with a Notice of Intent
issued on May 5, 2006, (71 FR 87 May 5, 2006). Subsequently, MMS held
scoping meetings, issued a draft PEIS for comment on March 21, 2007,
and held hearings on the draft PEIS in the Spring of 2007. The MMS
issued the final PEIS on November 6, 2007, and the related Record of
Decision on January 10, 2008. In July 2008, MMS published a Notice of
Proposed Rulemaking for the REAU rule (73 FR 132 July 9, 2008) and the
comment period closed on September 8, 2008. After considering all
comments submitted, MMS published the final REAU rule on April 29,
2009, (74 FR 81 April 29, 2009).
Relevant Actions Taken by the State of Delaware
In 2006, the Delaware General Assembly passed a bill directing the
State's largest utility, Delmarva Power, to contract with providers of
new power resources that will guarantee stable prices for electricity.
The Delaware legislature also passed a Renewable Portfolio Standard
(RPS) requiring that 20 percent of Delaware's electricity come from
renewable sources by the year 2019. In November 2006, Delmarva Power
issued a RFP for the construction of a new power plant to serve
Delaware. Proposals were evaluated by Delmarva Power along with four
State agencies: the Delaware Public Service Commission (PSC), the
Delaware Energy Office, the Office of Management and Budget, and the
Office of the Controller General. Bluewater Wind Delaware LLC submitted
the winning proposal. In June 2008, Bluewater Wind Delaware LLC
announced that it signed a 25-year power purchase agreement with
Delmarva Power to sell up to 200 megawatts (MW) of power to the utility
from an offshore wind facility proposed on the OCS, about 12.5 miles
off of Rehoboth Beach. The agreement with Delmarva Power was ratified
by the Delaware legislature on July 31, 2008.
Determination of Competitive Interest
The first step in determining whether there is competitive interest
in an area on the OCS for wind energy projects offshore of Delaware
will be the evaluation of submissions indicating whether parties are
willing to nominate particular areas of interest as suitable for
renewable energy projects in response to this RFI. At the conclusion of
the comment period for this RFI, the MMS will review information
submitted and make a determination of whether competitive interest
exists. Factors MMS may consider when evaluating the submittals
include, but are not limited to: site locations; the timing and type of
proposed activities; infrastructure; anticipated power production and
likely purchasers; environmental and resource data and information; and
the qualifications of a bidder to hold a lease on the OCS.
Specifically, MMS will first determine whether there is any
geographic overlap of the areas of interest. If two areas of interest
fully or partially overlap, the competitive process will begin as
outlined in 30 CFR 285.211 through 285.225 and discussed below.
Situations may arise in which several parties nominate project
areas that do not overlap. Under these circumstances, MMS could choose
to employ an allocation system of leases that involves competition
across tracts. This system is referred to as intertract competition and
will also trigger the competitive process outlined in 30 CFR 285.211
through 285.225 and discussed below.
Competitive Process
If MMS determines that competitive interest exists for this area,
it would proceed with the following defined process, as described in 30
CFR 285.211 through 285.225:
(1) Call for Information and Nominations (Call). The MMS would
publish in the Federal Register a notice of a Call for Information and
Nominations for leasing in specified areas. The comment period
following the notice of a Call would be 45 days. In the notice, MMS may
request comments seeking information on areas that should receive
special consideration and analysis; on geological conditions (including
bottom hazards); on archaeological sites on the seabed or nearshore; on
possible multiple uses of the proposed leasing area (including
navigation, recreation, and fisheries); and on other socioeconomic,
biological, and environmental matters.
In response to the Call, the MMS would require potential lessees to
submit the following information: the area of interest for a possible
lease; a general description of the potential lessee's objectives and
the facilities that the potential lessee would use to achieve those
objectives; a general schedule of proposed activities, including those
leading to commercial operations; and data and information concerning
renewable energy and environmental conditions in the area of interest,
including the energy and resource data and information that was used to
evaluate the area of interest. However, an applicant would not be
required to resubmit information already submitted in response to this
RFI.
(2) Area Identification. The MMS would identify areas for
environmental analysis and consideration for leasing in discussion with
appropriate Federal agencies, States, local governments, Indian Tribes,
and other interested parties based on the information submitted in this
RFI and the Call.
(3) Proposed Sale Notice. The MMS would then publish a Proposed
Sale Notice (PSN) in the Federal Register and send the PSN to the
Governor of any affected State and the executive of any local
government that might be affected. The PSN would describe the areas
offered for leasing and the proposed terms and conditions of a lease
sale, including the proposed auction format, lease form, and lease
provisions. Additionally, the PSN would describe the criteria and
process for evaluating bids. Generally, the PSN would be issued after
completion of the final National Environmental Policy Act (NEPA)
documentation, preparation of the Consistency Determination as required
by the Coastal Zone Management Act (CZMA) and its implementing
regulations, and preparation of various analyses of proposed lease sale
economic terms and conditions. The comment period following issuance of
a PSN would be 60 days.
Should MMS proceed with a competitive lease award process, MMS will
use one of the following four auction formats to select the winner as
described at 30 CFR Sec. 285.220: multiple-factor bidding; sealed
bidding; ascending bidding; or two-stage bidding (a combination of
ascending bidding and sealed bidding). The multi-factor
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auction format may consider factors such as: (1) Documentation that you
have entered into a purchase power agreement with a utility based in
the State of Delaware for the purchase of power from a wind power
project on the OCS and/or (2) documentation of your receipt of, and
progress under, a limited lease under MMS' IP for the installation of
offshore data collection or technology testing facilities on the OCS
offshore Delaware.
(4) Final Sale Notice. The MMS would then publish the Final Sale
Notice (FSN) in the Federal Register at least 30 days before the date
of the sale. The MMS would publish the criteria for winning bid
determinations in the FSN.
(5) Bid Evaluation. Following publication of the FSN in the Federal
Register, qualified bidders may submit their bids to MMS in accordance
with procedures specified for the auction format to be used. The bids,
including the bid deposits, if applicable, would be checked for
technical and legal adequacy. The MMS would evaluate the bids to
determine if the bidder has complied with all applicable regulations.
The MMS reserves the right to reject any or all bids and the right to
withdraw an offer to lease an area from the sale.
If MMS were to use a multiple-factor auction format, the evaluation
of bids would be made by a panel composed of members selected by MMS.
Factors that likely would be considered for inclusion in this
auction process are: Cash bonus; operating fees; rentals; technical
merit, including site assessment efforts, project planning, and
engineering studies; project experience; credit and security; the
existence of power purchase arrangements; timeliness; financing and
economics; environmental considerations; public benefits; and
compatibility with State and local needs.
The MMS would coordinate with States and other stakeholders, as
appropriate, to establish procedures designed to assure the selection
of the most worthy proposal that would provide a fair return to the
United States.
(6) Issuance of a Lease. Following the selection of a winning bid
by the MMS, the submitter would be immediately notified of the decision
and provided a set of official lease forms for execution. The
successful bidder would have to pay the remaining 80 percent of the
bonus bid, or other amount as specified in the Final Sale Notice, and
file the required financial assurance within 10 days. Upon receipt of
the required payments and properly executed lease forms, a lease would
be issued to the successful bidder. The MMS leases would become
effective on the first day of the month following the date the lease is
signed by an MMS official unless MMS approves a written request that it
become effective on the first day of the month in which it is signed.
Within 45 days after receipt of the copies of the signed lease, payment
of the first 6 months' rent is due.
Noncompetitive Process
If, after evaluating the responses to this RFI, MMS determines that
there is no competitive interest in a proposed lease, a lease may be
issued noncompetitively pursuant to the process described in 30 CFR
285.232, which is summarized below.
Based on responses to this RFI, MMS would publish a notice of the
proposed lease in the Federal Register. If, after publishing this
notice, MMS receives no responses indicating competitive interest in
the proposed lease, MMS would issue a determination that there is no
competitive interest in the proposed lease.
Within 60 days of the date of this determination, the lease
applicant would be required to submit a Site Assessment Plan (SAP), as
described in 30 CFR 285.231(d)(2)(i) and submit an acquisition fee
pursuant to 30 CFR 285.502(a). Leases issued noncompetitively need to
comply with the requirements of NEPA, CZMA, the Endangered Species Act
(ESA), and other applicable Federal statutes. In accordance with 30 CFR
285.231(e), MMS would coordinate and consult, as appropriate, with
affected Federal agencies, State and local governments, and affected
Indian Tribes in issuing a noncompetitive lease and developing lease
terms and conditions.
If, in response to the second Federal Register notice, MMS receives
additional indications of interest in the proposed lease, MMS may
determine that there is competitive interest and would follow the
competitive process outlined above.
Other Process Issues
In the event that there is geographically overlapping interest (or
intertract competition) for some areas but not for others, MMS may
defer announcement of the determination of competitive interest for
leases involving the overlapping (or intertract) areas. In such a
circumstance, MMS may first publish a notice of its determination of
the proposed lease(s) for area(s) in which there is no competitive
interest. Next, MMS would provide notice identifying the leases that
were proposed for all areas for which there is competitive interest.
All lease areas for which there is competitive interest would be
processed under the competitive leasing procedures set forth in 30 CFR
285.211 through 30 CFR 285.225. All lease(s) area(s) for which there is
no competitive interest would be processed individually under the
applicable provisions of 30 CFR 285.231.
Environmental Review
The following describes MMS' environmental review process, which
would be coordinated, to the extent possible, with any Federal and
State agencies having jurisdiction over activities associated with OCS
commercial wind energy leases. Other Federal and State agencies may
have additional and separate environmental review, consultation, and
permitting processes and requirements.
After evaluating the responses to the RFI, but before publishing
the PSN for a competitive lease sale or issuing a lease
noncompetitively, MMS would prepare a NEPA analysis for public review
and conduct required consultations with Federal and State agencies.
Several consultations would be conducted and integrated into the
NEPA process described below. These consultations include, but are not
limited to, those required by the CZMA, ESA, Magnuson-Stevens Fishery
Conservation and Management Act, National Historic Preservation Act,
and Executive Order 13175--``Consultation and Coordination with Tribal
Governments.'' These consultations would be completed prior to the
issuance of any leases.
Should MMS determine that lease issuance would significantly affect
the quality of the human environment, MMS would begin the process of
preparing an Environmental Impact Statement (EIS) to analyze the
effects of issuing the lease(s) through either a noncompetitive or
competitive process. This would include a public scoping period,
including a minimum 30-day comment period and one or more public
meetings, would be conducted to solicit input on the alternatives and
issues to be addressed in a draft EIS. This review would describe the
technology expected to be used or deemed necessary for site assessment,
construction, operations, and decommissioning in the area proposed for
leasing, and any potential direct, indirect, and cumulative impacts to
biological and physical resources, as well as socioeconomic
consequences. During this process, MMS would review pertinent published
and unpublished studies from academic and other
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institutions and organizations and from other Federal and State
agencies. Upon completion of a draft EIS, MMS would file the draft EIS
with the Environmental Protection Agency (EPA) and would publish a
Notice of Availability in the Federal Register. The draft EIS would be
made available and distributed for public review and comment during a
minimum 45-day public comment period.
The MMS would hold one or more public hearings in the vicinity of
the proposed lease area for the purpose of receiving comments on the
draft EIS. The MMS would announce the time and location in the Federal
Register at least 30 days before the public hearings.
The MMS would analyze the comments and information received during
public review process, including those from public hearings, along with
any newly acquired information and, where appropriate, would
incorporate this information into the final EIS. Based on the NEPA
analysis, results of the consultations, and comments received, the MMS
would develop lease terms or stipulations to protect sensitive areas
and/or biological and cultural resources. After the public hearings,
MMS would develop a final EIS. The MMS would file the final EIS with
EPA and publish a Notice of Availability in the Federal Register.
In a competitive leasing process, MMS would issue the final EIS
with the PSN. In a noncompetitive leasing process, MMS would issue the
final EIS at least 30 days prior to issuance of the lease.
Description of the Area
The area of interest rests between the incoming and outgoing
shipping routes for Delaware Bay. The geographic extent of the area was
selected based on preliminary indications of interest from developers
in response to Delmarva Power's RFP in 2006, and through consultation
with the MMS Delaware OCS Renewable Energy Task Force. The following
full OCS lease blocks are included within the area of interest:
Salisbury NJ18-05 Blocks 6324, 6325, 6326, 6327, 6375, 6376, 6377,
6426, 6427, 6477, and 6527. In addition, the following partial OCS
lease blocks are included within the area of interest: Salisbury NJ18-
05 Blocks 6272, 6273, 6274, 6275, 6276, 6277, 6278, 6322, 6323, 6328,
6373, 6374, 6378, 6424, 6425, 6428, 6475, 6476, 6478, 6526, 6528, 6577,
and 6578.
This area is bounded by four coordinate pairs (listed below in a
clockwise direction) and its closest point to shore is approximately
7.5 miles due east from Rehoboth Beach Delaware.
Coordinates are provided in X, Y (eastings, northings) UTM Zone
18N, NAD 83 and geographic (longitude, latitude), NAD83. Coordinate
pairs start and end on the same location (Point No. 1).
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Point No. X (easting) Y (northing) Longitude Latitude
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1................................... 505537.918949 4289342.054910 -74.936267 38.752755
2................................... 537257.896672 4287622.083370 -74.571316 38.736486
3................................... 535159.620824 4262175.494230 -74.596744 38.507255
4................................... 530399.822669 4259687.322270 -74.651442 38.485007
1................................... 505537.918949 4289342.054910 -74.936267 38.752755
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Obstruction Area
At this time, the MMS has identified at least one obstruction area
within the area of interest, although more may be identified during a
future project review process. Within this area lies a fish haven/
artificial reef site identified on National Oceanic and Atmospheric
Administration (NOAA) nautical charts. The obstruction area's
coordinates are listed below.
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Point No. X (easting) Y (northing) Longitude Latitude
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1................................... 523043.216256 4281282.246340 -74.735077 38.679839
2................................... 525024.306894 4281183.549880 -74.712304 38.678896
3................................... 524708.429395 4279986.367770 -74.715978 38.668116
4................................... 524599.514352 4279572.346900 -74.717245 38.664388
5................................... 524255.539477 4279604.189130 -74.721198 38.664684
6................................... 522091.708618 4279798.266490 -74.746063 38.666490
7................................... 522393.836728 4281025.207860 -74.742551 38.677539
8................................... 522464.137335 4281311.495710 -74.741733 38.680118
1................................... 523043.216256 4281282.246340 -74.735077 38.679839
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Traffic Separation Scheme (TSS) Buffer
The U.S. Coast Guard will require an initial buffer from the edge
of a traffic lane of 500 meters. Because proposed project
characteristics will be unique to each individual project, the specific
buffer may be adjusted as more information is collected. In addition,
it is important to note that two-way routes, fairways, and TSSs are
various forms of routing measures, and that distances from them will
vary because of many factors, one of which is vessel traffic and rules-
of-the-road protocol.
Map of Area of Interest
A map of the area of interest can be found at the following URL:
http://www.mms.gov/offshore/RenewableEnergy/stateactivities.htm#Delaware
A large-scale map of the RFI area showing boundaries of the RFI
area with numbered blocks is available from MMS at the following
address: Minerals Management Service, Office of Offshore Alternative
Energy Programs, 381 Elden Street, Mail Stop 4090, Herndon, VA 20170,
Phone: (703) 787-1300, Fax: (703) 787-1708.
Required Indication of Interest Information
If you intend to submit an indication of interest in a commercial
lease from MMS for the development of wind resources in the area(s)
identified in this RFI, you must provide the following:
(1) A description of the specific whole or partial OCS blocks or
areas within the RFI area that are of interest for commercial
development, including any required buffer area. Note that any
indications of interest identifying areas greater than what would be
reasonably necessary to develop a proposed
[[Page 21657]]
commercial wind facility will not be considered as valid indications of
interest. In addition, MMS will not consider any areas outside of the
RFI area in this process;
(2) A description of your objectives and the facilities that you
would use to achieve those objectives;
(3) A schedule of proposed activities, including those leading to
commercial operations;
(4) Available and pertinent data and information concerning
renewable energy and environmental conditions in the area of interest,
including energy and resource data and information used to evaluate the
area of interest;
(5) Documentation demonstrating that you are qualified to hold a
lease as set forth in 30 CFR 285.107, including documentation
demonstrating that you are technically and financially capable of
constructing, operating, maintaining, and decommissioning the
facilities described in (2) above. Documentation of financial
qualification may include information establishing access to sufficient
capital to carry out development. Examples of documentation of
technical qualification may include evidence of international or
domestic experience with renewable energy projects or other types of
electric-energy-related projects.
Protection of Privileged or Confidential Information
The MMS will protect privileged or confidential information that
you submit as required by the Freedom of Information Act (FOIA).
Exemption 4 of FOIA applies to trade secrets and commercial or
financial information that you submit that is privileged or
confidential. If you wish to protect the confidentiality of such
information, clearly mark it and request that the MMS treat it as
confidential. The MMS will not disclose such information, subject to
the requirements of FOIA. However, the MMS will not treat as
confidential any aggregate summaries of such information or comments
not containing such information. Please label privileged or
confidential information ``Contains Confidential Information'' and
consider submitting such information as a separate attachment.
Dated: March 31, 2010.
S. Elizabeth Birnbaum,
Director, Minerals Management Service.
[FR Doc. 2010-9610 Filed 4-23-10; 8:45 am]
BILLING CODE 4310-MR-P