Standards for Business Practices of Interstate Natural Gas Pipelines, 55460-55464 [E8-22206]

Download as PDF 55460 Federal Register / Vol. 73, No. 187 / Thursday, September 25, 2008 / Proposed Rules sroberts on PROD1PC70 with PROPOSALS necessary for the generation of electricity that affects the reliability of Bulk-Power System but not have a role in reactor safety. The Commission understands that such facilities would not be subject to compliance with cyber security regulations developed by the NRC. 7. The Commission believes that the plain meaning of the exemption language in the eight CIP Reliability Standards at issue is that only those facilities within a nuclear generation plant that are regulated by the NRC are exempt from those Standards. The exemption language in the eight CIP Reliability Standards neither states, nor implies, that all facilities within a nuclear generation plant are exempt from the Standards, regardless of whether they are subject to NRC regulation. However, the Commission believes there is a need to assure that there is no potential gap in the regulation of critical cyber assets at nuclear generation plants and to assure that there is no misunderstanding of the scope of the exemption in the CIP Reliability Standards. The Commission, therefore, proposes to clarify that Reliability Standards CIP–002–1 through CIP–009–1 apply to the facilities within a nuclear generation plant that are not regulated by the NRC. 8. To be clear, the Commission’s intent is to eliminate a potential gap in the regulation of critical assets and critical cyber assets at nuclear generation plants in the United States. The Commission reaffirms the language of the CIP Reliability Standards—and respects the jurisdiction of the NRC— and does not intend that those Standards apply to facilities within a nuclear generation plant that are regulated by the NRC. This should allay concerns that a specific facility is subject to ‘‘dual’’ regulation by both the Commission and NRC as to cyber security. 9. In addition to comments on the proposed clarification, the Commission seeks comment on the following two related matters: Whether there is a clear delineation between those facilities within a nuclear generation plant that pertain to reactor safety security or emergency response and the nonsafety portion or, as NRC refers to it, the ‘‘balance of plant.’’ For example, the generator itself in a nuclear generation plant would seem to be under the CIP Reliability Standards, but the motors that operate nuclear reactor control rods would seem to be under NRC regulation. If the delineation is not clear, is there a need for owners and/ or operators of nuclear generation plants to identify the specific facilities that pertain to reactor safety security or emergency response and subject to NRC regulation, and the VerDate Aug<31>2005 17:10 Sep 24, 2008 Jkt 214001 balance of plant that is subject to the eight CIP Reliability Standards? In Order No. 706, the Commission approved NERC’s ‘‘(Revised) Implementation Plan for Cyber Security Standards CIP–001– 1 through CIP–009–1’’ for the eight cybersecurity Reliability Standards. The implementation plan provides a staggered approach to implementation that includes three tables with separate timelines for various industry segments. Table 3, which applies to generation owners and generation operators, requires achieving compliance with the requirements of the CIP Reliability Standards by December 31, 2009. The only requirement that has a different compliance date in Table 3 is CIP–003–1 Requirement R2, which must be complied with by June 30, 2008. The Commission seeks comment on whether Table 3 for generation owners and generation operators should control the implementation schedule of the CIP Reliability Standards to the facilities within a nuclear generation plant that the NRC does not regulate. 10. Comments on the Commission’s proposed clarification are due 30 days from the date of issuance of this order, after which the Commission intends to issue a further order on the matter. The Commission orders: The Commission directs that this order be published in the Federal Register. Comments on the Commission’s proposed clarification are due 30 days from the date of issuance of this order. By the Commission. Kimberly D. Bose, Secretary. [FR Doc. E8–22198 Filed 9–24–08; 8:45 am] BILLING CODE 6717–01–P DEPARTMENT OF ENERGY Federal Energy Regulatory Commission 18 CFR Part 284 [Docket No. RM96–1–029] Standards for Business Practices of Interstate Natural Gas Pipelines September 18, 2008. Federal Energy Regulatory Commission. ACTION: Notice of proposed rulemaking. AGENCY: SUMMARY: The Federal Energy Regulatory Commission is proposing to amend its regulations governing standards for business practices of interstate natural gas pipelines to incorporate by reference the most recent version of the standards, Version 1.8, adopted by the Wholesale Gas Quadrant of the North American Energy Standards Board (NAESB) and to make other minor corrections. PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 DATES: Comments are due November 10, 2008. You may submit comments, identified by docket number by any of the following methods: • Agency Web Site: https:// www.ferc.gov. Documents created electronically using word processing software should be filed in native applications or print-to-PDF format and not in a scanned format. • Mail/Hand Delivery: Commenters unable to file comments electronically must mail or hand deliver an original and 14 copies of their comments to: Federal Energy Regulatory Commission, Secretary of the Commission, 888 First Street, NE., Washington, DC 20426. FOR FURTHER INFORMATION CONTACT: Gary D. Cohen, Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426, 202–502– 8321. William W. Lohrman, Office of Energy Market Regulation, Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426, 202–502–8070. Kay I. Morice, Office of Energy Market Regulation, Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426, 202–502– 6507. SUPPLEMENTARY INFORMATION: 1. The Federal Energy Regulatory Commission (Commission) proposes to amend § 284.12 of its regulations (which prescribes standards for pipeline business operations and communications) 1 to incorporate by reference the most recent version, Version 1.8, of the consensus standards adopted by the Wholesale Gas Quadrant (WGQ) of the North American Energy Standards Board (NAESB) (Version 1.8 Standards). In addition, the Commission proposes to amend § 284.12(b) of its regulations to make minor corrections. ADDRESSES: I. Background 2. Since 1996, in the Order No. 587 series,2 the Commission has adopted regulations to standardize the business practices and communication methodologies of interstate pipelines in order to create a more integrated and efficient pipeline grid. In this series of orders, the Commission incorporated by reference consensus standards developed by the WGQ (formerly the Gas Industry Standards Board or GISB), 1 18 CFR 284.12. for Business Practices of Interstate Natural Gas Pipelines, Order No. 587, 61 FR 39,053 (July 26, 1996), FERC Statutes and Regulations, Regulations Preambles July 1996–December 2000 ¶ 31,038 (July 17, 1996). 2 Standards E:\FR\FM\25SEP1.SGM 25SEP1 Federal Register / Vol. 73, No. 187 / Thursday, September 25, 2008 / Proposed Rules sroberts on PROD1PC70 with PROPOSALS a private consensus standards developer composed of members from all segments of the natural gas industry. The WGQ is an accredited standards organization under the auspices of the American National Standards Institute (ANSI). NAESB’s stated mission is to ‘‘take the lead in developing and implementing standards across the industry to simplify and expand electronic communication, and to streamline business practices. The vision of NAESB is a seamless North American marketplace for energy, as recognized by its customers, the business community, industry participants and regulatory bodies.’’ 3 3. On September 14, 2007, NAESB submitted a report to the Commission stating that it had adopted a new version of its standards, Version 1.8, dated September 30, 2006.4 NAESB reports that the Version 1.8 Standards include a new set of standards for ‘‘Internet Electronic Transport’’ that is applicable to the retail gas and electric markets as well as the wholesale gas market, changes to the Electronic Delivery Mechanism (EDM) Related Standards, an additional standard related to reporting on gas quality, and maintenance changes to the Nomination Related Standards and Flowing Gas Related Standards.5 NAESB also reports that the Version 1.8 standards include several standards already adopted by the Commission, including gas-electric coordination standards to support communications between pipelines and gas-fired generators,6 gas quality reporting standards to support reporting of gas quality specifications and reporting of the underlying assumptions and methodologies, and business practice standards to support implementation of Order No. 2004 on Standards of Conduct.7 3 NAESB WGQ Working Paper on Internet Electronic Transport at 6, dated Mar. 3, 2004. 4 Some of the standards subsequently were corrected and these minor corrections were applied to the Version 1.8 Capacity Release Related Standards on Dec. 13, 2006. 5 The NAESB WGQ adopted Internet Electronic Transport Related Standards, Version 1.8, on Sept. 30, 2006. The EDM Standards require pipelines to conduct certain standardized business transactions across the Internet according to certain prescribed protocols. In this NOPR, the Commission proposes to make these standards mandatory for interstate natural gas pipelines. We are not proposing to make these standards mandatory for retail transactions. 6 Standards for Business Practices for Interstate Natural Gas Pipelines; Standards for Business Practices for Public Utilities, Order No. 698, 72 FR 38,757 (July 16, 2007), FERC Stats. & Regs., Regulations Preambles ¶ 31,251 (June 25, 2007); Order No. 698-A, order granting clarification and denying reh’g, 121 FERC ¶ 61,264 (2007). 7 Standards of Conduct for Transmission Providers, Order No. 2004, 68 FR 69,134 (Dec. 11, 2003), FERC Stats. & Regs., Regulations Preambles VerDate Aug<31>2005 17:10 Sep 24, 2008 Jkt 214001 II. Discussion 4. The Commission proposes to incorporate by reference in its regulations Version 1.8 of the NAESB WGQ’s consensus standards,8 with two exceptions.9 Adoption of Version 1.8 will continue the process of updating and improving NAESB’s business practice standards for the wholesale gas market. The new Internet Electronic Transport Related Standards will help create a more seamless electronic marketplace by providing consistent electronic protocols across the wholesale gas, as well as the retail gas and retail electric markets. The standards also include a new standard for gas quality reporting (Standard 4.3.93) that will provide the industry with important information about how pipelines determine gas quality. Standard 4.3.93 requires that the pipelines post on their web sites specific information on how the pipelines determine gas quality, including the industry standard (or other methodology, as applicable) that the pipeline uses for the following: procedures used for obtaining natural gas samples, analytical test method(s), and calculation method(s), in conjunction with any physical constant(s) and underlying assumption(s). The revisions to the Nomination Related Standards and ¶ 31,155 (Nov. 25, 2003); Order No. 2004–A, order on reh’g, 69 FR 23,562 (Apr. 29, 2004), FERC Stats. & Regs., Regulations Preambles ¶ 31,161 (Apr. 16, 2004); Order No. 2004–B, order on reh’g, 69 FR 48,371 (Aug. 10, 2004), FERC Stats. & Regs., Regulations and Preambles ¶ 31,166 (Aug. 2, 2004); Order No. 2004–C, order on reh’g, 70 FR 284 (Jan. 4, 2005), FERC Stats. & Regs., Regulations Preambles ¶ 31,172 (Dec. 21, 2004); Order No. 2004–D, order on clarification and reh’g, 110 FERC ¶ 61,320 (2005). 8 In its Version 1.8 Standards, the WEQ made the following changes to its Version 1.7 standards: It revised Principles 1.1.9, 4.1.2, 4.1.6, and 4.1.7, Definitions 2.2.4, 4.2.1, 4.2.11, 4.2.12, 4.2.13, and 4.2.20, Standards 1.3.54, 1.3.60, 1.3.61, 1.3.63, 2.3.21, 2.3.35, 2.3.51, 4.3.1, 4.3.2, 4.3.5, 4.3.16, 4.3.18, 4.3.22, 4.3.23, and 4.3.25, and Datasets 1.4.1 through 1.4.7, 2.4.1 through 2.4.4, 2.4.7, 2.4.8, 3.4.1, 5.4.1 through 5.4.3, 5.4.5, 5.4.7 through 5.4.11, 5.4.13, 5.4.14, 5.4.15, and 5.4.18 through 5.4.22. It added Principles 0.1.3, 4.1.40, and 10.1.1 through 10.1.9, Definitions 0.2.1, 0.2.2, 0.2.3, and 10.2.1 through 10.2.38, Standards 0.3.11 through 0.3.15, 2.3.65, 4.3.89 through 4.3.93, and 10.3.1 through 10.3.25, and Data Sets 0.4.1, 2.4.17, 2.4.18, and 5.4.23. It deleted Principles 4.1.9 and 4.1.25, and Standards 4.3.6, 4.3.19, 4.3.21, and 4.3.63. It deleted the following standards from the EDM Related Standards and moved them to the Internet Electronic Transport Related Standards: Standards 4.3.7 through 4.3.15, 4.3.37, 4.3.64, 4.3.70, 4.3.71, and 4.3.88. 9 The Commission is continuing its past practice and is not proposing to incorporate by reference Standards 4.3.4 and 10.3.2., because they are inconsistent with the Commission’s record retention requirement in 18 CFR 284.12(b)(3)(v). PO 00000 Frm 00006 Fmt 4702 Sfmt 4702 55461 Flowing Gas Related Standards are designed to ensure that these standards reflect current market practices.10 5. The NAESB WGQ approved the Version 1.8 Standards under NAESB’s consensus procedures.11 As the Commission found in Order No. 587, adoption of consensus standards is appropriate because the consensus process helps ensure the reasonableness of the standards by requiring that the standards draw support from a broad spectrum of industry participants representing all segments of the industry. Moreover, since the industry itself has to conduct business under these standards, the Commission’s regulations should reflect those standards that have the widest possible support. In section 12(d) of the National Technology Transfer and Advancement Act of 1995 (NTT&AA), Congress affirmatively requires federal agencies to use technical standards developed by voluntary consensus standards organizations, like NAESB, as means to carry out policy objectives or activities.12 6. The Commission proposes that natural gas pipelines be required to implement the Version 1.8 Standards on the first day of the month three months after a final rule is issued. Based on past practice, we are proposing this implementation schedule in order to give the natural gas pipelines subject to these standards adequate time to prepare for these changes. In addition, the Commission proposes that pipelines be required to file tariff sheets to reflect the changed standards two months before the implementation date. 7. In Order No. 712,13 the Commission recently revised various aspects of the Commission’s capacity release standards, revisions which bear upon the current NAESB standards in Version 1.8. We appreciate NAESB’s quick 10 In addition, the Commission proposes to amend § 284.12(b) to make two minor corrections. First, we propose to correct the reference to the ‘‘Gas Industry Standards Board’’ to refer to the ‘‘North American Energy Standards Board Wholesale Gas Quadrant.’’ Second, we propose to correct the reference to the paragraph incorporating the NAESB standards by reference from paragraph (b)(1) to paragraph (a)(1). 11 This process first requires a super-majority vote of 17 out of 25 members of the WGQ’s Executive Committee with support from at least two members from each of the five industry segments— Distributors, End Users, Pipelines, Producers, and Services (including marketers and computer service providers). For final approval, 67 percent of the WGQ’s general membership voting must ratify the standards. 12 Pub L. No. 104–113, section 12(d), 110 Stat. 775 (1996), 15 U.S.C. 272 note (1997). 13 Promotion of a More Efficient Capacity Release Market, Order No. 712, 73 FR 37058 (June 30, 2008), FERC Stats. & Regs., Regulations Preambles ¶ 31,271 (June 19, 2008). E:\FR\FM\25SEP1.SGM 25SEP1 55462 Federal Register / Vol. 73, No. 187 / Thursday, September 25, 2008 / Proposed Rules action in already starting the process of revising its standards.14 Creating standardized procedures applicable to asset manager agreements (AMAs), releases related to state retail unbundling initiatives, and the other changes adopted in that rule will help to make conducting and reporting these processes more efficient. Order No. 712 requires that the pipelines add additional information to their Internet websites. As part of NAESB’s reexamination of its posting standard (Standard 5.4.20), NAESB should seek to make sure that its revisions result in a consistent system of reporting capacity release information relative to capacity recall conditions, AMAs, state unbundling releases, storage, and other categories of releases, so that the Commission and the public easily will be able to identify the releases in each category and any terms and conditions applicable to those releases.15 III. Notice of Use of Voluntary Consensus Standards 8. Office of Management and Budget Circular A–119 (section 11) (February 10, 1998) provides that federal agencies should publish a request for comment in a NOPR when the agency is seeking to issue or revise a regulation proposing to adopt a voluntary consensus standard or a government-unique standard. In this NOPR, the Commission is proposing to incorporate by reference voluntary consensus standards developed by the WGQ. IV. Information Collection Statement 9. The following collections of information contained in this proposed rule have been submitted to the Office of Management and Budget (OMB) for review under section 3507(d) of the Paperwork Reduction Act of 1995, 44 U.S.C. 3507(d). The Commission solicits comments on the Commission’s need for this information, whether the information will have practical utility, the accuracy of the provided burden estimates, ways to enhance the quality, utility, and clarity of the information to be collected, and any suggested methods for minimizing respondents’ burden, including the use of automated information techniques. The ‘‘public Number of respondents Data collection FERC–545 16 .................................................................................................... FERC–549C 17 ................................................................................................. protection’’ provisions of the Paperwork Reduction Act of 1995 require each agency to display a currently valid control number and inform respondents that a response is not required unless the information collection displays a valid OMB control number on each information collection or provides a justification as to why the information collection number cannot be displayed. In the case of information collections published in regulations, the control number is to be published in the Federal Register. The following burden estimate includes the costs to implement the Version 1.8 Standards, which incorporate the most recent and up-to-date standards governing business practices of and electronic communication with interstate natural gas pipelines. The burden estimates are primarily related to start-up to implement the latest version of the standards and will not result in ongoing costs. Number of responses per respondent 168 126 Hours per response 1 1 Total number of hours 10 1,181 1,680 148,806 Total Annual Hours for Collection (Reporting and Recordkeeping (if appropriate)) = 150,486. 10. Information Collection Costs: The Commission seeks comments on the costs to comply with these requirements. It has projected the average annualized cost for all respondents to be the following: FERC–545 FERC–549C Annualized Capital/Startup Costs .................................................................................................................... Annualized Costs (Operations & Maintenance) .............................................................................................. $211,680 0 $12,743,010 0 Total Annualized Costs ............................................................................................................................ 211,680 12,743,010 Total Cost for all Respondents = 12,954,690. sroberts on PROD1PC70 with PROPOSALS 11. OMB regulations 18 require OMB to approve certain information collection requirements imposed by agency rule. The Commission is submitting notification of this proposed rule to OMB. Title: FERC–545, Gas Pipeline Rates: Rates Change (Non-Formal); FERC– 549C, Standards for Business Practices of Interstate Natural Gas Pipelines. Action: Proposed collections. OMB Control Nos.: 1902–0154, 1902– 0174. Respondents: Business or other for profit (Interstate natural gas pipelines (Not applicable to small business)). Frequency of Responses: One-time implementation (business procedures, capital/start-up). Necessity of Information: This proposed rule, if implemented, would upgrade the Commission’s current business practice and communication standards to the latest edition approved by the NAESB WGQ (i.e., the Version 1.8 Standards). The implementation of these standards is necessary to increase the efficiency of the pipeline grid, make pipelines’ electronic communications 14 See Minutes of July 1, 2008 Meeting of the WGQ Business Practice Subcommittee, https:// naesb.org/pdf3/wgq_bps_712_070108fm.doc. 15 The current standard, for example, does not separately require a specific posting of whether capacity is subject to recall, apparently leaving this information to be included in Special Terms and Miscellaneous Notes. Given the additional types of information that must now be posted, NAESB needs to consider whether including all this information in Special Terms and Miscellaneous Notes is still appropriate. 16 Data collection FERC–545 covers rate change filings made by natural gas pipelines, including tariff changes. (OMB Control No. 1902–0154). 17 Data collection FERC–549C covers Standards for Business Practices of Interstate Natural Gas Pipelines. (OMB Control No. 1902–0174). 18 5 CFR 1320.11. VerDate Aug<31>2005 17:10 Sep 24, 2008 Jkt 214001 PO 00000 Frm 00007 Fmt 4702 Sfmt 4702 E:\FR\FM\25SEP1.SGM 25SEP1 sroberts on PROD1PC70 with PROPOSALS Federal Register / Vol. 73, No. 187 / Thursday, September 25, 2008 / Proposed Rules more secure, and is consistent with the mandate that agencies provide for electronic disclosure of information.19 Requiring such information ensures both a common means of communication and common business practices that provide participants engaged in transactions with interstate pipelines with timely information and uniform business procedures across multiple pipelines. 12. The information collection requirements of this proposed rule will be reported directly to the industry users. The implementation of these data requirements will help the Commission carry out its responsibilities under the Natural Gas Act to monitor activities of the natural gas industry to ensure its competitiveness and to assure the improved efficiency of the industry’s operations. The Commission’s Office of Energy Market Regulation will use the data in rate proceedings to review rate and tariff changes by natural gas companies for the transportation of gas, for general industry oversight, and to supplement the documentation used during the Commission’s audit process. 13. Internal Review: The Commission has reviewed the requirements pertaining to business practices and electronic communication with interstate natural gas pipelines and made a determination that the proposed revisions are necessary to establish a more efficient and integrated pipeline grid. These requirements conform to the Commission’s plan for efficient information collection, communication, and management within the natural gas industry. The Commission has assured itself, by means of its internal review, that there is specific, objective support for the burden estimates associated with the information requirements. 14. Interested persons may obtain information on the reporting requirements by contacting the following: Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426, Attention: Michael Miller, Office of the Executive Director, Phone: (202) 502–8415, fax: (202) 273–0873, E-mail: michael.miller@ferc.gov]. 15. Comments concerning the collection of information(s) and the associated burden estimate(s), should be sent to the contact listed above and to the Office of Management and Budget, Office of Information and Regulatory Affairs, Washington, DC 20503 [Attention: Desk Officer for the Federal Energy Regulatory Commission, phone: (202) 395–7345, fax: (202) 395–7285]. 19 44 U.S.C. 3504 note, Pub. L. 105–277, 1701, 112 Stat. 2681–749 (1998). VerDate Aug<31>2005 17:10 Sep 24, 2008 Jkt 214001 V. Environmental Analysis 16. The Commission is required to prepare an Environmental Assessment or an Environmental Impact Statement for any action that may have a significant adverse effect on the human environment.20 The Commission has categorically excluded certain actions from these requirements as not having a significant effect on the human environment.21 The actions proposed here fall within categorical exclusions in the Commission’s regulations for rules that are clarifying, corrective, or procedural, for information gathering, analysis, and dissemination, and for sales, exchange, and transportation of natural gas that requires no construction of facilities.22 Therefore, an environmental assessment is unnecessary and has not been prepared as part of this NOPR. VI. Regulatory Flexibility Act Certification 17. The Regulatory Flexibility Act of 1980 (RFA) 23 generally requires a description and analysis of final rules that will have significant economic impact on a substantial number of small entities. In drafting a rule an agency is required to: (1) Assess the effect that its regulation will have on small entities; (2) analyze effective alternatives that may minimize a regulation’s impact; and (3) make the analysis available for public comment.24 In its NOPR, the agency must either include an initial regulatory flexibility analysis (Initial RFA) 25 or certify that the proposed rule will not have a ‘‘significant impact on a substantial number of small entities.’’ 26 18. The regulations proposed here impose requirements only on interstate pipelines, the majority of which are not small businesses. In this regard, we note that, under the industry standards used for the RFA, a natural gas pipeline company qualifies as a ‘‘small entity’’ if it had annual receipts of $6.5 million or less.27 Most companies regulated by the 20 Order No. 486, Regulations Implementing the National Environmental Policy Act of 1969, 52 FR 47,897 (Dec. 17, 1987), FERC Stats. & Regs., Regulations Preambles 1986–1990 ¶ 30,783 (Dec. 10, 1987). 21 18 CFR 380.4. 22 See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(27). 23 5 U.S.C. 601–612. 24 5 U.S.C. 601–604. 25 5 U.S.C. 603(a). 26 5 U.S.C. 605(b). 27 5 U.S.C. 601(3), citing section 3 of the Small Business Act, 15 U.S.C. 623. Section 3 of the SBA defines a ‘‘small business concern’’ as a business which is independently owned and operated and which is not dominant in its field of operation. The Small Business Size Standards component of the PO 00000 Frm 00008 Fmt 4702 Sfmt 4702 55463 Commission do not fall within the RFA’s definition of a small entity. Approximately 168 entities would be potential respondents subject to data collection FERC–545 reporting requirements; of those, about 126 natural gas companies (including storage) would also be subject to data collection FERC 549–C reporting requirements. Nearly all of these entities are large entities. For the year 2007 (the most recent year for which information is available), only four companies not affiliated with larger companies had annual revenues of less than $6.5 million, which is about three percent of the total universe of potential respondents. Moreover, these requirements are designed to benefit all customers, including small businesses. As noted above, adoption of consensus standards helps ensure the reasonable of the standards by requiring that the standards draw support from a broad spectrum of industry participants representing all segments of the industry. Because of that representation and the fact that industry conducts business under these standards, the Commission’s regulations should reflect those standards that have the widest possible support. 19. Accordingly, pursuant to § 605(b) of the RFA, the Commission hereby certifies that the regulations proposed herein will not have a significant adverse impact on a substantial number of small entities. VII. Comment Procedures 20. The Commission invites interested persons to submit written comments on the matters and issues proposed for incorporation by reference in this NOPR, including any related matters or alternative proposals that commenters may wish to discuss. Comments are due November 10, 2008. Comments must refer to Docket No. RM96–1–029, and must include the commenter’s name, the organization they represent, if applicable, and their address. Comments may be filed either in electronic or paper format. 21. Comments may be filed electronically via the eFiling link on the Commission’s Web site at https:// www.ferc.gov. The Commission accepts most standard word processing formats and commenters may attach additional files with supporting information in certain other file formats. Commenters filing electronically do not need to make North American Industry Classification System (NAICS) defines a small natural gas pipeline company as one that transports natural gas and whose annual receipts (total income plus cost of goods sold) did not exceed $6.5 million for the previous year. E:\FR\FM\25SEP1.SGM 25SEP1 55464 Federal Register / Vol. 73, No. 187 / Thursday, September 25, 2008 / Proposed Rules a paper filing. Commenters that are not able to file comments electronically must send an original and 14 copies of their comments to: Federal Energy Regulatory Commission, Secretary of the Commission, 888 First Street, NE., Washington, DC 20426. For paper filings, the original and 14 copies of such comments should be submitted to the Secretary of the Commission, Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426. 22. All comments will be placed in the Commission’s public files and may be viewed, printed, or downloaded remotely, as described in the Document Availability section below. Commenters on this proposal are not required to serve copies of their comments on other commenters. PART 284—CERTAIN SALES AND TRANSPORTATION OF NATURAL GAS UNDER THE NATURAL GAS POLICY ACT OF 1978 AND RELATED AUTHORITIES Authority: 15 U.S.C. 717–717w, 3301– 3432; 42 U.S.C. 7101–7352; 43 U.S.C. 1331– 1356. 2. Section 284.12 is amended by revising paragraphs (a)(1)(i) through (vi), adding paragraph (a)(1)(vii), and revising the introductory text of paragraph (b) to read as follows: § 284.12 Standards for pipeline business operations and communications. (a) * * * (1) * * * (i) Additional Standards (General 23. In addition to publishing the full Standards, Creditworthiness Standards, text of this document in the Federal and Gas/Electric Operational Register, the Commission provides all Communications Standards) (Version interested persons an opportunity to 1.8, September 30, 2006); view and/or print the contents of this document via the Internet through (ii) Nominations Related Standards FERC’s Home Page (https://www.ferc.gov) (Version 1.8, September 30, 2006); and in FERC’s Public Reference Room (iii) Flowing Gas Related Standards during normal business hours (8:30 a.m. (Version 1.8, September 30, 2006); to 5 p.m. Eastern time) at 888 First (iv) Invoicing Related Standards Street, NE., Room 2A, Washington, DC 20426. (Version 1.8, September 30, 2006); 24. From FERC’s Home Page on the (v) Quadrant Electronic Delivery Internet, this information is available in Mechanism Related Standards (Version eLibrary. The full text of this document 1.8, September 30, 2006) with the is available in eLibrary both in PDF and exception of Standard 4.3.4; Microsoft Word format for viewing, (vi) Capacity Release Related printing, and/or downloading. To access Standards (Version 1.8, September 30, this document in eLibrary, type the docket number, excluding the last three 2006 (with minor corrections applied December 13, 2006); and digits of this document in the docket (vii) Internet Electronic Transport number field. Related Standards (Version 1.8, 25. User assistance is available for eLibrary and the FERC’s Web site during September 30, 2006) with the exception of Standard 10.3.2. the Commission’s normal business hours. For assistance, contact FERC * * * * * Online Support by e-mail at (b) Business practices and electronic FERCOnlineSupport@ferc.gov, or by communication requirements. An telephone at 202–502–6652 (toll-free at interstate pipeline that transports gas (866) 208–3676) or for TTY, contact under subparts B or G of this part must (202) 502–8659. comply with the following List of Subjects in 18 CFR Part 284 requirements. The regulations in this paragraph adopt the abbreviations and Continental shelf, Incorporation by definitions contained in the North reference, Natural gas, Reporting and American Energy Standards Board recordkeeping requirements. Wholesale Gas Quadrant standards By direction of the Commission. incorporated by reference in paragraph Kimberly D. Bose, (a)(1) of this section. Secretary. * * * * * In consideration of the foregoing, the [FR Doc. E8–22206 Filed 9–24–08; 8:45 am] Commission proposes to amend part BILLING CODE 6717–01–P 284, Chapter I, Title 18, Code of Federal Regulations, as follows: sroberts on PROD1PC70 with PROPOSALS 17:10 Sep 24, 2008 Jkt 214001 39 CFR Part 3001 [Docket No. RM2008–6; Order No. 108] Periodic Reporting Rules 1. The authority citation for part 284 continues to read as follows: VIII. Document Availability VerDate Aug<31>2005 POSTAL REGULATORY COMMISSION PO 00000 Frm 00009 Fmt 4702 Sfmt 4702 Postal Regulatory Commission. Proposed rule; availability of rulemaking petition. AGENCY: ACTION: SUMMARY: Under a new law, the Postal Service must file an annual compliance report with the Postal Regulatory Commission on costs, revenues, rates, and quality of service associated with its products. It has filed documents with the Commission to change some of the methods it uses to compile the fiscal year 2008 report. In the Commission’s view, these documents constitute a rulemaking petition. Therefore, this document provides an opportunity for the public to comment on potential changes in periodic reporting rules. DATES: 1. Initial comments: September 26, 2008. 2. Reply comments: October 3, 2008. ADDRESSES: Submit comments electronically via the Commission’s Filing Online system at https:// www.prc.gov. FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 202–789–6820 and stephen.sharfman@prc.gov. SUPPLEMENTARY INFORMATION: Regulatory History, 73 FR 51983 (September 8, 2008). On September 12, 2008, the Postal Service filed a petition to initiate an informal rulemaking proceeding comparable to Docket No. RM2008–2 to consider two more proposed changes to the costing methods approved for periodic reporting.1 In Docket No. RM2008–2, nine numbered proposals are the subject of notice and comment rulemaking procedures. The Postal Service proposes that the two additional proposed changes be referred to as Proposal Ten and Proposal Eleven to avoid confusion with the nine proposals already under review. The Postal Service’s petition describes its two additional proposals, explains their background, objectives, rationale, and, to the extent possible, their likely impact in FY 2008. I. Procedural Expedition The same factors that led the Commission to expedite review of the 1 Petition of the United States Postal Service Requesting Initiation of a Proceeding to Consider Further Proposed Methodology Changes for the FY 2008 ACR (Proposals Ten-Eleven), September 12, 2008 (Petition). E:\FR\FM\25SEP1.SGM 25SEP1

Agencies

[Federal Register Volume 73, Number 187 (Thursday, September 25, 2008)]
[Proposed Rules]
[Pages 55460-55464]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-22206]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 284

[Docket No. RM96-1-029]

Standards for Business Practices of Interstate Natural Gas
Pipelines

September 18, 2008.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: The Federal Energy Regulatory Commission is proposing to amend
its regulations governing standards for business practices of
interstate natural gas pipelines to incorporate by reference the most
recent version of the standards, Version 1.8, adopted by the Wholesale
Gas Quadrant of the North American Energy Standards Board (NAESB) and
to make other minor corrections.

DATES: Comments are due November 10, 2008.

ADDRESSES: You may submit comments, identified by docket number by any
of the following methods:
Agency Web Site: https://www.ferc.gov. Documents created
electronically using word processing software should be filed in native
applications or print-to-PDF format and not in a scanned format.
Mail/Hand Delivery: Commenters unable to file comments
electronically must mail or hand deliver an original and 14 copies of
their comments to: Federal Energy Regulatory Commission, Secretary of
the Commission, 888 First Street, NE., Washington, DC 20426.

FOR FURTHER INFORMATION CONTACT:

Gary D. Cohen, Office of the General Counsel, Federal Energy Regulatory
Commission, 888 First Street, NE., Washington, DC 20426, 202-502-8321.
William W. Lohrman, Office of Energy Market Regulation, Federal Energy
Regulatory Commission, 888 First Street, NE., Washington, DC 20426,
202-502-8070.
Kay I. Morice, Office of Energy Market Regulation, Federal Energy
Regulatory Commission, 888 First Street, NE., Washington, DC 20426,
202-502-6507.

SUPPLEMENTARY INFORMATION:
1. The Federal Energy Regulatory Commission (Commission) proposes
to amend Sec. 284.12 of its regulations (which prescribes standards
for pipeline business operations and communications) \1\ to incorporate
by reference the most recent version, Version 1.8, of the consensus
standards adopted by the Wholesale Gas Quadrant (WGQ) of the North
American Energy Standards Board (NAESB) (Version 1.8 Standards). In
addition, the Commission proposes to amend Sec. 284.12(b) of its
regulations to make minor corrections.
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\1\ 18 CFR 284.12.
---------------------------------------------------------------------------

I. Background

2. Since 1996, in the Order No. 587 series,\2\ the Commission has
adopted regulations to standardize the business practices and
communication methodologies of interstate pipelines in order to create
a more integrated and efficient pipeline grid. In this series of
orders, the Commission incorporated by reference consensus standards
developed by the WGQ (formerly the Gas Industry Standards Board or
GISB),

[[Page 55461]]

a private consensus standards developer composed of members from all
segments of the natural gas industry. The WGQ is an accredited
standards organization under the auspices of the American National
Standards Institute (ANSI). NAESB's stated mission is to ``take the
lead in developing and implementing standards across the industry to
simplify and expand electronic communication, and to streamline
business practices. The vision of NAESB is a seamless North American
marketplace for energy, as recognized by its customers, the business
community, industry participants and regulatory bodies.'' \3\
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\2\ Standards for Business Practices of Interstate Natural Gas
Pipelines, Order No. 587, 61 FR 39,053 (July 26, 1996), FERC
Statutes and Regulations, Regulations Preambles July 1996-December
2000 ] 31,038 (July 17, 1996).
\3\ NAESB WGQ Working Paper on Internet Electronic Transport at
6, dated Mar. 3, 2004.
---------------------------------------------------------------------------

3. On September 14, 2007, NAESB submitted a report to the
Commission stating that it had adopted a new version of its standards,
Version 1.8, dated September 30, 2006.\4\ NAESB reports that the
Version 1.8 Standards include a new set of standards for ``Internet
Electronic Transport'' that is applicable to the retail gas and
electric markets as well as the wholesale gas market, changes to the
Electronic Delivery Mechanism (EDM) Related Standards, an additional
standard related to reporting on gas quality, and maintenance changes
to the Nomination Related Standards and Flowing Gas Related
Standards.\5\ NAESB also reports that the Version 1.8 standards include
several standards already adopted by the Commission, including gas-
electric coordination standards to support communications between
pipelines and gas-fired generators,\6\ gas quality reporting standards
to support reporting of gas quality specifications and reporting of the
underlying assumptions and methodologies, and business practice
standards to support implementation of Order No. 2004 on Standards of
Conduct.\7\
---------------------------------------------------------------------------

\4\ Some of the standards subsequently were corrected and these
minor corrections were applied to the Version 1.8 Capacity Release
Related Standards on Dec. 13, 2006.
\5\ The NAESB WGQ adopted Internet Electronic Transport Related
Standards, Version 1.8, on Sept. 30, 2006. The EDM Standards require
pipelines to conduct certain standardized business transactions
across the Internet according to certain prescribed protocols. In
this NOPR, the Commission proposes to make these standards mandatory
for interstate natural gas pipelines. We are not proposing to make
these standards mandatory for retail transactions.
\6\ Standards for Business Practices for Interstate Natural Gas
Pipelines; Standards for Business Practices for Public Utilities,
Order No. 698, 72 FR 38,757 (July 16, 2007), FERC Stats. & Regs.,
Regulations Preambles ] 31,251 (June 25, 2007); Order No. 698-A,
order granting clarification and denying reh'g, 121 FERC ] 61,264
(2007).
\7\ Standards of Conduct for Transmission Providers, Order No.
2004, 68 FR 69,134 (Dec. 11, 2003), FERC Stats. & Regs., Regulations
Preambles ] 31,155 (Nov. 25, 2003); Order No. 2004-A, order on
reh'g, 69 FR 23,562 (Apr. 29, 2004), FERC Stats. & Regs.,
Regulations Preambles ] 31,161 (Apr. 16, 2004); Order No. 2004-B,
order on reh'g, 69 FR 48,371 (Aug. 10, 2004), FERC Stats. & Regs.,
Regulations and Preambles ] 31,166 (Aug. 2, 2004); Order No. 2004-C,
order on reh'g, 70 FR 284 (Jan. 4, 2005), FERC Stats. & Regs.,
Regulations Preambles ] 31,172 (Dec. 21, 2004); Order No. 2004-D,
order on clarification and reh'g, 110 FERC ] 61,320 (2005).
---------------------------------------------------------------------------

II. Discussion

4. The Commission proposes to incorporate by reference in its
regulations Version 1.8 of the NAESB WGQ's consensus standards,\8\ with
two exceptions.\9\ Adoption of Version 1.8 will continue the process of
updating and improving NAESB's business practice standards for the
wholesale gas market. The new Internet Electronic Transport Related
Standards will help create a more seamless electronic marketplace by
providing consistent electronic protocols across the wholesale gas, as
well as the retail gas and retail electric markets. The standards also
include a new standard for gas quality reporting (Standard 4.3.93) that
will provide the industry with important information about how
pipelines determine gas quality. Standard 4.3.93 requires that the
pipelines post on their web sites specific information on how the
pipelines determine gas quality, including the industry standard (or
other methodology, as applicable) that the pipeline uses for the
following: procedures used for obtaining natural gas samples,
analytical test method(s), and calculation method(s), in conjunction
with any physical constant(s) and underlying assumption(s). The
revisions to the Nomination Related Standards and Flowing Gas Related
Standards are designed to ensure that these standards reflect current
market practices.\10\
---------------------------------------------------------------------------

\8\ In its Version 1.8 Standards, the WEQ made the following
changes to its Version 1.7 standards:
It revised Principles 1.1.9, 4.1.2, 4.1.6, and 4.1.7,
Definitions 2.2.4, 4.2.1, 4.2.11, 4.2.12, 4.2.13, and 4.2.20,
Standards 1.3.54, 1.3.60, 1.3.61, 1.3.63, 2.3.21, 2.3.35, 2.3.51,
4.3.1, 4.3.2, 4.3.5, 4.3.16, 4.3.18, 4.3.22, 4.3.23, and 4.3.25, and
Datasets 1.4.1 through 1.4.7, 2.4.1 through 2.4.4, 2.4.7, 2.4.8,
3.4.1, 5.4.1 through 5.4.3, 5.4.5, 5.4.7 through 5.4.11, 5.4.13,
5.4.14, 5.4.15, and 5.4.18 through 5.4.22.
It added Principles 0.1.3, 4.1.40, and 10.1.1 through 10.1.9,
Definitions 0.2.1, 0.2.2, 0.2.3, and 10.2.1 through 10.2.38,
Standards 0.3.11 through 0.3.15, 2.3.65, 4.3.89 through 4.3.93, and
10.3.1 through 10.3.25, and Data Sets 0.4.1, 2.4.17, 2.4.18, and
5.4.23.
It deleted Principles 4.1.9 and 4.1.25, and Standards 4.3.6,
4.3.19, 4.3.21, and 4.3.63.
It deleted the following standards from the EDM Related
Standards and moved them to the Internet Electronic Transport
Related Standards: Standards 4.3.7 through 4.3.15, 4.3.37, 4.3.64,
4.3.70, 4.3.71, and 4.3.88.
\9\ The Commission is continuing its past practice and is not
proposing to incorporate by reference Standards 4.3.4 and 10.3.2.,
because they are inconsistent with the Commission's record retention
requirement in 18 CFR 284.12(b)(3)(v).
\10\ In addition, the Commission proposes to amend Sec.
284.12(b) to make two minor corrections. First, we propose to
correct the reference to the ``Gas Industry Standards Board'' to
refer to the ``North American Energy Standards Board Wholesale Gas
Quadrant.'' Second, we propose to correct the reference to the
paragraph incorporating the NAESB standards by reference from
paragraph (b)(1) to paragraph (a)(1).
---------------------------------------------------------------------------

5. The NAESB WGQ approved the Version 1.8 Standards under NAESB's
consensus procedures.\11\ As the Commission found in Order No. 587,
adoption of consensus standards is appropriate because the consensus
process helps ensure the reasonableness of the standards by requiring
that the standards draw support from a broad spectrum of industry
participants representing all segments of the industry. Moreover, since
the industry itself has to conduct business under these standards, the
Commission's regulations should reflect those standards that have the
widest possible support. In section 12(d) of the National Technology
Transfer and Advancement Act of 1995 (NTT&AA), Congress affirmatively
requires federal agencies to use technical standards developed by
voluntary consensus standards organizations, like NAESB, as means to
carry out policy objectives or activities.\12\
---------------------------------------------------------------------------

\11\ This process first requires a super-majority vote of 17 out
of 25 members of the WGQ's Executive Committee with support from at
least two members from each of the five industry segments--
Distributors, End Users, Pipelines, Producers, and Services
(including marketers and computer service providers). For final
approval, 67 percent of the WGQ's general membership voting must
ratify the standards.
\12\ Pub L. No. 104-113, section 12(d), 110 Stat. 775 (1996), 15
U.S.C. 272 note (1997).
---------------------------------------------------------------------------

6. The Commission proposes that natural gas pipelines be required
to implement the Version 1.8 Standards on the first day of the month
three months after a final rule is issued. Based on past practice, we
are proposing this implementation schedule in order to give the natural
gas pipelines subject to these standards adequate time to prepare for
these changes. In addition, the Commission proposes that pipelines be
required to file tariff sheets to reflect the changed standards two
months before the implementation date.
7. In Order No. 712,\13\ the Commission recently revised various
aspects of the Commission's capacity release standards, revisions which
bear upon the current NAESB standards in Version 1.8. We appreciate
NAESB's quick

[[Page 55462]]

action in already starting the process of revising its standards.\14\
Creating standardized procedures applicable to asset manager agreements
(AMAs), releases related to state retail unbundling initiatives, and
the other changes adopted in that rule will help to make conducting and
reporting these processes more efficient. Order No. 712 requires that
the pipelines add additional information to their Internet websites. As
part of NAESB's reexamination of its posting standard (Standard
5.4.20), NAESB should seek to make sure that its revisions result in a
consistent system of reporting capacity release information relative to
capacity recall conditions, AMAs, state unbundling releases, storage,
and other categories of releases, so that the Commission and the public
easily will be able to identify the releases in each category and any
terms and conditions applicable to those releases.\15\
---------------------------------------------------------------------------

\13\ Promotion of a More Efficient Capacity Release Market,
Order No. 712, 73 FR 37058 (June 30, 2008), FERC Stats. & Regs.,
Regulations Preambles ] 31,271 (June 19, 2008).
\14\ See Minutes of July 1, 2008 Meeting of the WGQ Business
Practice Subcommittee, https://naesb.org/pdf3/wgq_bps_712_
070108fm.doc.
\15\ The current standard, for example, does not separately
require a specific posting of whether capacity is subject to recall,
apparently leaving this information to be included in Special Terms
and Miscellaneous Notes. Given the additional types of information
that must now be posted, NAESB needs to consider whether including
all this information in Special Terms and Miscellaneous Notes is
still appropriate.
---------------------------------------------------------------------------

III. Notice of Use of Voluntary Consensus Standards

8. Office of Management and Budget Circular A-119 (section 11)
(February 10, 1998) provides that federal agencies should publish a
request for comment in a NOPR when the agency is seeking to issue or
revise a regulation proposing to adopt a voluntary consensus standard
or a government-unique standard. In this NOPR, the Commission is
proposing to incorporate by reference voluntary consensus standards
developed by the WGQ.

IV. Information Collection Statement

9. The following collections of information contained in this
proposed rule have been submitted to the Office of Management and
Budget (OMB) for review under section 3507(d) of the Paperwork
Reduction Act of 1995, 44 U.S.C. 3507(d). The Commission solicits
comments on the Commission's need for this information, whether the
information will have practical utility, the accuracy of the provided
burden estimates, ways to enhance the quality, utility, and clarity of
the information to be collected, and any suggested methods for
minimizing respondents' burden, including the use of automated
information techniques. The ``public protection'' provisions of the
Paperwork Reduction Act of 1995 require each agency to display a
currently valid control number and inform respondents that a response
is not required unless the information collection displays a valid OMB
control number on each information collection or provides a
justification as to why the information collection number cannot be
displayed. In the case of information collections published in
regulations, the control number is to be published in the Federal
Register. The following burden estimate includes the costs to implement
the Version 1.8 Standards, which incorporate the most recent and up-to-
date standards governing business practices of and electronic
communication with interstate natural gas pipelines. The burden
estimates are primarily related to start-up to implement the latest
version of the standards and will not result in on-going costs.

----------------------------------------------------------------------------------------------------------------
Number of
Data collection Number of responses per Hours per Total number
respondents respondent response of hours
----------------------------------------------------------------------------------------------------------------
FERC-545 \16\................................... 168 1 10 1,680
FERC-549C \17\.................................. 126 1 1,181 148,806
----------------------------------------------------------------------------------------------------------------

Total Annual Hours for Collection (Reporting and Recordkeeping (if
appropriate)) = 150,486

10. Information Collection Costs: The Commission seeks comments on
the costs to comply with these requirements. It has projected the
average annualized cost for all respondents to be the following:
---------------------------------------------------------------------------

\16\ Data collection FERC-545 covers rate change filings made by
natural gas pipelines, including tariff changes. (OMB Control No.
1902-0154).
\17\ Data collection FERC-549C covers Standards for Business
Practices of Interstate Natural Gas Pipelines. (OMB Control No.
1902-0174).

------------------------------------------------------------------------
FERC-545 FERC-549C
------------------------------------------------------------------------
Annualized Capital/Startup Costs.... $211,680 $12,743,010
Annualized Costs (Operations & 0 0
Maintenance).......................
-----------------------------------
Total Annualized Costs.......... 211,680 12,743,010
------------------------------------------------------------------------

Total Cost for all Respondents = 12,954,690

11. OMB regulations \18\ require OMB to approve certain information
collection requirements imposed by agency rule. The Commission is
submitting notification of this proposed rule to OMB.
---------------------------------------------------------------------------

\18\ 5 CFR 1320.11.
---------------------------------------------------------------------------

Title: FERC-545, Gas Pipeline Rates: Rates Change (Non-Formal);
FERC-549C, Standards for Business Practices of Interstate Natural Gas
Pipelines.
Action: Proposed collections.
OMB Control Nos.: 1902-0154, 1902-0174.
Respondents: Business or other for profit (Interstate natural gas
pipelines (Not applicable to small business)).
Frequency of Responses: One-time implementation (business
procedures, capital/start-up).
Necessity of Information: This proposed rule, if implemented, would
upgrade the Commission's current business practice and communication
standards to the latest edition approved by the NAESB WGQ (i.e., the
Version 1.8 Standards). The implementation of these standards is
necessary to increase the efficiency of the pipeline grid, make
pipelines' electronic communications

[[Page 55463]]

more secure, and is consistent with the mandate that agencies provide
for electronic disclosure of information.\19\ Requiring such
information ensures both a common means of communication and common
business practices that provide participants engaged in transactions
with interstate pipelines with timely information and uniform business
procedures across multiple pipelines.
---------------------------------------------------------------------------

\19\ 44 U.S.C. 3504 note, Pub. L. 105-277, 1701, 112 Stat. 2681-
749 (1998).
---------------------------------------------------------------------------

12. The information collection requirements of this proposed rule
will be reported directly to the industry users. The implementation of
these data requirements will help the Commission carry out its
responsibilities under the Natural Gas Act to monitor activities of the
natural gas industry to ensure its competitiveness and to assure the
improved efficiency of the industry's operations. The Commission's
Office of Energy Market Regulation will use the data in rate
proceedings to review rate and tariff changes by natural gas companies
for the transportation of gas, for general industry oversight, and to
supplement the documentation used during the Commission's audit
process.
13. Internal Review: The Commission has reviewed the requirements
pertaining to business practices and electronic communication with
interstate natural gas pipelines and made a determination that the
proposed revisions are necessary to establish a more efficient and
integrated pipeline grid. These requirements conform to the
Commission's plan for efficient information collection, communication,
and management within the natural gas industry. The Commission has
assured itself, by means of its internal review, that there is
specific, objective support for the burden estimates associated with
the information requirements.
14. Interested persons may obtain information on the reporting
requirements by contacting the following: Federal Energy Regulatory
Commission, 888 First Street, NE., Washington, DC 20426, Attention:
Michael Miller, Office of the Executive Director, Phone: (202) 502-
8415, fax: (202) 273-0873, E-mail: michael.miller@ferc.gov].
15. Comments concerning the collection of information(s) and the
associated burden estimate(s), should be sent to the contact listed
above and to the Office of Management and Budget, Office of Information
and Regulatory Affairs, Washington, DC 20503 [Attention: Desk Officer
for the Federal Energy Regulatory Commission, phone: (202) 395-7345,
fax: (202) 395-7285].

V. Environmental Analysis

16. The Commission is required to prepare an Environmental
Assessment or an Environmental Impact Statement for any action that may
have a significant adverse effect on the human environment.\20\ The
Commission has categorically excluded certain actions from these
requirements as not having a significant effect on the human
environment.\21\ The actions proposed here fall within categorical
exclusions in the Commission's regulations for rules that are
clarifying, corrective, or procedural, for information gathering,
analysis, and dissemination, and for sales, exchange, and
transportation of natural gas that requires no construction of
facilities.\22\ Therefore, an environmental assessment is unnecessary
and has not been prepared as part of this NOPR.
---------------------------------------------------------------------------

\20\ Order No. 486, Regulations Implementing the National
Environmental Policy Act of 1969, 52 FR 47,897 (Dec. 17, 1987), FERC
Stats. & Regs., Regulations Preambles 1986-1990 ] 30,783 (Dec. 10,
1987).
\21\ 18 CFR 380.4.
\22\ See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(27).
---------------------------------------------------------------------------

VI. Regulatory Flexibility Act Certification

17. The Regulatory Flexibility Act of 1980 (RFA) \23\ generally
requires a description and analysis of final rules that will have
significant economic impact on a substantial number of small entities.
In drafting a rule an agency is required to: (1) Assess the effect that
its regulation will have on small entities; (2) analyze effective
alternatives that may minimize a regulation's impact; and (3) make the
analysis available for public comment.\24\ In its NOPR, the agency must
either include an initial regulatory flexibility analysis (Initial RFA)
\25\ or certify that the proposed rule will not have a ``significant
impact on a substantial number of small entities.'' \26\
---------------------------------------------------------------------------

\23\ 5 U.S.C. 601-612.
\24\ 5 U.S.C. 601-604.
\25\ 5 U.S.C. 603(a).
\26\ 5 U.S.C. 605(b).
---------------------------------------------------------------------------

18. The regulations proposed here impose requirements only on
interstate pipelines, the majority of which are not small businesses.
In this regard, we note that, under the industry standards used for the
RFA, a natural gas pipeline company qualifies as a ``small entity'' if
it had annual receipts of $6.5 million or less.\27\ Most companies
regulated by the Commission do not fall within the RFA's definition of
a small entity. Approximately 168 entities would be potential
respondents subject to data collection FERC-545 reporting requirements;
of those, about 126 natural gas companies (including storage) would
also be subject to data collection FERC 549-C reporting requirements.
Nearly all of these entities are large entities. For the year 2007 (the
most recent year for which information is available), only four
companies not affiliated with larger companies had annual revenues of
less than $6.5 million, which is about three percent of the total
universe of potential respondents. Moreover, these requirements are
designed to benefit all customers, including small businesses. As noted
above, adoption of consensus standards helps ensure the reasonable of
the standards by requiring that the standards draw support from a broad
spectrum of industry participants representing all segments of the
industry. Because of that representation and the fact that industry
conducts business under these standards, the Commission's regulations
should reflect those standards that have the widest possible support.
---------------------------------------------------------------------------

\27\ 5 U.S.C. 601(3), citing section 3 of the Small Business
Act, 15 U.S.C. 623. Section 3 of the SBA defines a ``small business
concern'' as a business which is independently owned and operated
and which is not dominant in its field of operation. The Small
Business Size Standards component of the North American Industry
Classification System (NAICS) defines a small natural gas pipeline
company as one that transports natural gas and whose annual receipts
(total income plus cost of goods sold) did not exceed $6.5 million
for the previous year.
---------------------------------------------------------------------------

19. Accordingly, pursuant to Sec. 605(b) of the RFA, the
Commission hereby certifies that the regulations proposed herein will
not have a significant adverse impact on a substantial number of small
entities.

VII. Comment Procedures

20. The Commission invites interested persons to submit written
comments on the matters and issues proposed for incorporation by
reference in this NOPR, including any related matters or alternative
proposals that commenters may wish to discuss. Comments are due
November 10, 2008. Comments must refer to Docket No. RM96-1-029, and
must include the commenter's name, the organization they represent, if
applicable, and their address. Comments may be filed either in
electronic or paper format.
21. Comments may be filed electronically via the eFiling link on
the Commission's Web site at https://www.ferc.gov. The Commission
accepts most standard word processing formats and commenters may attach
additional files with supporting information in certain other file
formats. Commenters filing electronically do not need to make

[[Page 55464]]

a paper filing. Commenters that are not able to file comments
electronically must send an original and 14 copies of their comments
to: Federal Energy Regulatory Commission, Secretary of the Commission,
888 First Street, NE., Washington, DC 20426. For paper filings, the
original and 14 copies of such comments should be submitted to the
Secretary of the Commission, Federal Energy Regulatory Commission, 888
First Street, NE., Washington, DC 20426.
22. All comments will be placed in the Commission's public files
and may be viewed, printed, or downloaded remotely, as described in the
Document Availability section below. Commenters on this proposal are
not required to serve copies of their comments on other commenters.

VIII. Document Availability

23. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
Internet through FERC's Home Page (https://www.ferc.gov) and in FERC's
Public Reference Room during normal business hours (8:30 a.m. to 5 p.m.
Eastern time) at 888 First Street, NE., Room 2A, Washington, DC 20426.
24. From FERC's Home Page on the Internet, this information is
available in eLibrary. The full text of this document is available in
eLibrary both in PDF and Microsoft Word format for viewing, printing,
and/or downloading. To access this document in eLibrary, type the
docket number, excluding the last three digits of this document in the
docket number field.
25. User assistance is available for eLibrary and the FERC's Web
site during the Commission's normal business hours. For assistance,
contact FERC Online Support by e-mail at FERCOnlineSupport@ferc.gov, or
by telephone at 202-502-6652 (toll-free at (866) 208-3676) or for TTY,
contact (202) 502-8659.

List of Subjects in 18 CFR Part 284

Continental shelf, Incorporation by reference, Natural gas,
Reporting and recordkeeping requirements.

By direction of the Commission.
Kimberly D. Bose,
Secretary.

In consideration of the foregoing, the Commission proposes to amend
part 284, Chapter I, Title 18, Code of Federal Regulations, as follows:

PART 284--CERTAIN SALES AND TRANSPORTATION OF NATURAL GAS UNDER THE
NATURAL GAS POLICY ACT OF 1978 AND RELATED AUTHORITIES

1. The authority citation for part 284 continues to read as
follows:

Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7352;
43 U.S.C. 1331-1356.

2. Section 284.12 is amended by revising paragraphs (a)(1)(i)
through (vi), adding paragraph (a)(1)(vii), and revising the
introductory text of paragraph (b) to read as follows:

Sec. 284.12 Standards for pipeline business operations and
communications.

(a) * * *
(1) * * *
(i) Additional Standards (General Standards, Creditworthiness
Standards, and Gas/Electric Operational Communications Standards)
(Version 1.8, September 30, 2006);
(ii) Nominations Related Standards (Version 1.8, September 30,
2006);
(iii) Flowing Gas Related Standards (Version 1.8, September 30,
2006);
(iv) Invoicing Related Standards (Version 1.8, September 30, 2006);
(v) Quadrant Electronic Delivery Mechanism Related Standards
(Version 1.8, September 30, 2006) with the exception of Standard 4.3.4;
(vi) Capacity Release Related Standards (Version 1.8, September 30,
2006 (with minor corrections applied December 13, 2006); and
(vii) Internet Electronic Transport Related Standards (Version 1.8,
September 30, 2006) with the exception of Standard 10.3.2.
* * * * *
(b) Business practices and electronic communication requirements.
An interstate pipeline that transports gas under subparts B or G of
this part must comply with the following requirements. The regulations
in this paragraph adopt the abbreviations and definitions contained in
the North American Energy Standards Board Wholesale Gas Quadrant
standards incorporated by reference in paragraph (a)(1) of this
section.
* * * * *
[FR Doc. E8-22206 Filed 9-24-08; 8:45 am]
BILLING CODE 6717-01-P

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