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Page 2 Comments on the proposed BOEM rule May 2, 2016 DESCRIPTION AND CONDITIONS The purpose of this agenda item is to make the Board aware that on March 22, 2016 the U.S. Department of Interior, Bureau of Ocean Energy Management (BOEM), placed a notice in the Federal Registrar announcing its intention to adopt a rule relative to use of Outer Continental Shelf (OCS) sand, gravel, and shell resources for shore protection projects which are authorized by or funded in whole or in part by the Federal government. The public comment period on the proposed rule is until May 23, 2016. The proposed rule appears to be codifying the uncodified guidelines and procedures currently being used by BOEM for sediments located within Federal waters (3 nautical miles or more). Use of Federal sediments under this proposed ruling will require a BOEM negotiated noncompetitive lease agreement. Since the County has offshore materials that may be affected in the future by the proposed BOEM rule changes, staff has developed several comments for the Board's consideration. All staff comments are attached to this agenda item. For the purpose of discussion staff comments are divided into the following categories and summarized below: 1. Regulation of Borrow Area Sediments It appears that the proposed rules only apply to projects that are funded in whole or part by the Federal government. Given the proposed rule describes the negotiated noncompetitive lease agreement process for qualifying projects (Federal) and codifies new and existing procedures, it is unclear how this will affect Local and State projects not partnered Federally. 2. Sediment Quantity and Quality Although this may be stipulated in the language of each individual negotiated noncompetitive lease agreement, the proposed rules lack discussion on borrow sediment use, quantity, and quality. 3. Previously issued BOEM Negotiated Noncompetitive Lease Agreements The proposed rule states: over the last two decades, BOEM has issued nearly 50 leases or Memorandum of Agreements with 22 parties, of which 5 were small public entities. Four out of the five small public entities received significant Federal cost -shares to conduct beach nourishment projects. a. Where are these leases located? b. Are these documents available? c. Were there any legal challenges? F•\Public WorksUamesG\Sand Wars\BOEM -- Federal Register\BOEM Proposed Rule - Federal Register dated March 22 2016 — IRC Coastal Comments -- Agenda Item 5-10-16\130EM Proposed Rule - IRC Coastal Comments -- Agenda Item 5-10-16.docx 113