Standards for Business Practices for Interstate Natural Gas Pipelines, 9162-9166 [E9-4295]
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Federal Register / Vol. 74, No. 40 / Tuesday, March 3, 2009 / Rules and Regulations
Dated: February 25, 2009.
By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–4379 Filed 3–2–09; 8:45 am]
Kay Morice (technical issues), Office of
Energy Market Regulation, Federal
Energy Regulatory Commission, 888
First Street, NE., Washington, DC
20426, (202) 502–6507.
Caroline Daly (technical issues), Office
of Energy Market Regulation, Federal
Energy Regulatory Commission, 888
First Street, NE., Washington, DC
20426, (202) 502–8931.
Gary D. Cohen (legal issues), Office of
the General Counsel, Federal Energy
Regulatory Commission, 888 First
Street, NE., Washington, DC 20426,
(202) 502–8321.
SUPPLEMENTARY INFORMATION:
BILLING CODE 8011–01–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
18 CFR Part 284
[Docket No. RM96–1–029; Order No.
587–T]
Standards for Business Practices for
Interstate Natural Gas Pipelines
Issued February 24, 2009.
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AGENCY: Federal Energy Regulatory
Commission.
ACTION: Final Rule.
SUMMARY: The Federal Energy
Regulatory Commission (Commission) is
amending its regulations that establish
standards for interstate natural gas
pipeline business practices and
electronic communications to
incorporate by reference into its
regulations the most recent version of
the standards, Version 1.8, adopted by
the Wholesale Gas Quadrant (WGQ) of
the North American Energy Standards
Board (NAESB) and to make other
minor corrections. This rule upgrades
the Commission’s current business
practice and communication standards
to reflect the latest version approved by
the NAESB WGQ (i.e., the Version 1.8
Standards), and is necessary to increase
the efficiency of the pipeline grid, make
pipelines’ electronic communications
more secure, and is consistent with the
mandate that agencies provide for
electronic disclosure of information.
DATES: This rule will become effective
April 2, 2009. Natural gas pipelines are
required to implement these standards
on the first day of the month three
months after the effective date of this
rule and file tariff sheets to reflect the
changed standards on the first day of the
month one month after the effective date
of this rule. The Director of the Federal
Register has approved the incorporation
by reference of the standards addressed
in this Final Rule effective April 2,
2009.
FOR FURTHER INFORMATION CONTACT:
William Lohrman (technical issues),
Office of Energy Market Regulation,
Federal Energy Regulatory
Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502–
8070.
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Before Commissioners: Jon Wellinghoff,
Acting Chairman; Suedeen G. Kelly,
Marc Spitzer, and Philip D. Moeller
1. The Federal Energy Regulatory
Commission (Commission) is amending
§ 284.12 of its regulations (which
establishes standards for natural gas
pipeline business practices and
electronic communications) 1 to
incorporate by reference the most recent
version (Version 1.8) of the standards
promulgated by the Wholesale Gas
Quadrant (WGQ) of the North American
Energy Standards Board (NAESB). In
addition, the Commission is amending
§ 284.12(b) of its regulations to make
minor corrections.
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),
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).
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, 2006.3 NAESB
reported that the Version 1.8 Standards
include a new set of standards for
1 18
CFR 284.12.
for Business Practices of Interstate
Natural Gas Pipelines, Order No. 587, 61 FR 39053
(July 26, 1996), FERC Stats. & Regs., ¶ 31,038
(1996).
3 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.
2 Standards
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‘‘Internet Electronic Transport’’ that is
applicable to the retail gas and electric
markets as well as the wholesale gas
market,4 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. NAESB also reported
that the Version 1.8 standards included
several standards already adopted by
the Commission, including gas-electric
coordination standards to support
communications between pipelines and
gas-fired generators,5 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.6
4. On September 18, 2008, the
Commission issued a Notice of
Proposed Rulemaking (NOPR) 7 that
proposed to incorporate by reference the
WGQ’s Version 1.8 Standards and to
make minor corrections to § 284.12(b) of
the Commission’s regulations. The sole
comment was filed by American Gas
Association (AGA), which supported
the adoption of Version 1.8 of the
standards, but requested modifications
to the Commission’s relationship with
NAESB.
II. Discussion
5. The Commission’s NOPR proposal
to amend part 284 of its regulations to
incorporate by reference Version 1.8 of
the NAESB WGQ’s consensus
standards,8 with the two exceptions
4 In this Final Rule, the Commission is requiring
interstate natural gas pipelines to comply with
these standards. We are not making these standards
mandatory for retail transactions.
5 Standards for Business Practices for Interstate
Natural Gas Pipelines; Standards for Business
Practices for Public Utilities, Order No. 698, 72 FR
38757 (July 16, 2007), FERC Stats, & Regs ¶ 31,251
(2007); order granting clarification and denying
reh’g, Order No. 698–A, 121 FERC ¶ 61,264 (2007).
6 Standards of Conduct for Transmission
Providers, Order No. 2004, 68 FR 69134 (Dec. 11,
2003), FERC Stats. & Regs., ¶ 31,155 (2003); order
on reh’g, Order No. 2004–B, 69 FR 23562 (Apr. 29,
2004), FERC Stats. & Regs., ¶ 31,161 (2004); order
on reh’g, Order No. 2004–B, 69 FR 48371 (Aug. 10,
2004), FERC Stats. & Regs., ¶ 31,166 (2004); order
on reh’g, Order No. 2004–C, 70 FR 284 (Jan. 4,
2005), FERC Stats. & Regs., ¶ 31,172 (2004); order
on clarification and reh’g, Order No. 2004–D, 110
FERC ¶ 61,320 (2005).
7 Standards for Business Practices for Interstate
Natural Gas Pipelines, Notice of Proposed
Rulemaking, 73 FR 55460 (Sep. 18, 2008), FERC
Stats. & Regs. ¶ 32,636 (2008).
8 In its Version 1.8 Standards, the WGQ 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,
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noted in the NOPR,9 was not opposed
by any commenter. 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
6. The NAESB WGQ approved the
Version 1.8 Standards under NAESB’s
consensus procedures.11 As the
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.
It renamed the EDM Related Standards, which are
now entitled the Quadrant Electronic Delivery
Mechanism Related Standards.
9 As proposed in the NOPR, the Commission is
continuing its past practice and is not incorporating
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 is amending
§ 284.12(b) to make two minor corrections. First, we
correct the reference to the ‘‘Gas Industry Standards
Board’’ to refer to the ‘‘North American Energy
Standards Board Wholesale Gas Quadrant.’’ Second,
we 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
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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
determined by the agencies unless use
of such standards would be inconsistent
with applicable law or otherwise
impractical.12
7. One of the Version 1.8 standards,
WGQ Standard 4.3.23, provides
guidelines for how pipelines post
transmission provider Standards of
Conduct-related information on their
Web sites. However, the Commission
issued revised Standards of Conduct
requirements in Order No. 717 13
subsequent to the Version 1.8 standards
adopted by NAESB. As a result, some of
the data templates in the NAESB WGQ
4.3.23 standard are unnecessary. We
will incorporate Standard 4.3.23,
because it contains requirements for
posting that are applicable under Order
No. 717. However, pipelines will not be
required to continue to post affiliate
information that is no longer required to
be maintained under the Commission’s
regulations as amended by Order No.
717.
8. In addition to comments in support
of the proposed rule, AGA requested
that the Commission take a more active
role in shepherding the development of
wholesale gas standards. In brief, AGA
is concerned that the standards process
takes too long to complete.
9. We appreciate AGA’s desire that
standard development proceed quickly.
We note that NAESB has taken a
continuing interest in improving its
standards-setting process, and has, for
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 Public Law 104–113, § 12(d), 110 Stat. 775
(1996), 15 U.S.C. 272 note (1997).
13 Standards of Conduct for Transmission
Providers, Order No. 717, 73 FR 63796 (Oct. 27,
2008), FERC Stats. & Regs ¶ 31,280 (2008), reh’g
pending.
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example, recently adopted policies to
allow standards setting decisions to be
made more quickly for important
efforts.14
III. Implementation Dates and
Procedures
10. Based on past practice, we are
adopting an implementation schedule
designed to provide natural gas
pipelines adequate time to prepare for
these changes. Pipelines are required to
implement the standards we are
incorporating by reference in this Final
Rule by the first day of the month three
months after the effective date of this
Final Rule. In addition, pipelines are
required to file tariff sheets to reflect the
changed standards on the first day of the
month one month after the effective date
of this Final Rule to be effective as of
the implementation date. Pipelines
incorporating the Version 1.8 standards
into their tariffs must include the
standard number and Version 1.8.
IV. Notice of Use of Voluntary
Consensus Standards
11. In section 12(d) of NTT&AA,
Congress affirmatively requires federal
agencies to use technical standards
developed by voluntary consensus
standards organizations, like NAESB, as
the means to carry out policy objectives
or activities determined by the agencies
unless use of such standards would be
inconsistent with applicable law or
otherwise impractical.15 NAESB
approved the standards under its
consensus procedures. Office of
Management and Budget Circular A–119
(§ 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. On
September 18, 2008, the Commission
issued a NOPR that proposed to
incorporate by reference NAESB’s
Version 1.8 Standards. The Commission
took comments on the NOPR into
account in fashioning this Final Rule.
V. Information Collection Statement
12. The Office of Management and
Budget’s (OMB) regulations in 5 CFR
1320.11 require that it approve certain
reporting and recordkeeping
requirements (collections of
information) imposed by an agency.
Upon approval of a collection of
14 NAESB Policy on Efficient Standards
Development, adopted by NAESB Board of
Directors, Sep. 25, 2008, https://www.naesb.org/
pdf3/bd092508a2.doc.
15 Public Law 104–113, § 12(d), 110 Stat. 775
(1996), 15 U.S.C. 272 note (1997).
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information, OMB will assign an OMB
control number and an expiration date.
Respondents subject to the filing
requirements of this Final Rule will not
be penalized for failing to respond to
these collections of information unless
the collections of information display a
valid OMB control number.
13. This Final Rule upgrades 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).
14. The implementation of these
standards is necessary to increase the
efficiency of the pipeline grid, make
pipelines’ electronic communications
more secure, and is consistent with the
mandate that agencies provide for
electronic disclosure of information.
Requiring such information ensures a
common means of communication and
ensures common business practices that
provide participants engaged in
transactions with interstate pipelines
with timely information and uniform
business procedures across multiple
pipelines.
15. The following burden estimates
include the costs to implement the
WGQ’s revised business practice
standards and communication protocols
for interstate natural gas pipelines. The
implementation of these data
requirements will help the Commission
carry out its responsibilities under the
Natural Gas Act of promoting the
No. of
respondents
Data collection
FERC–545 16 ....................................................................................
FERC–549C 17 .................................................................................
Total Annual Hours for Collection
(Reporting and Recordkeeping, (if
appropriate)) = 150,486.
efficiency and reliability of the natural
gas industry’s operations. In addition,
the Commission’s Office of Energy
Market Regulation will use the data for
general industry oversight.
16. The Commission sought
comments on the Commission’s
estimate provided in the NOPR of the
burden associated with adoption of the
NOPR proposals. In response to the
NOPR, no comments were filed that
addressed the reporting burden imposed
by these requirements. Therefore the
Commission will use these same
estimates in this Final Rule. The
substantive issue raised by the sole
commenter on the NOPR is addressed in
this preamble.
No. of responses
per respondent
168
126
17. Information Collection Costs: The
Commission sought comments on the
costs to comply with these
Hours per
response
1
1
Total No. of
hours
10
1,181
1,680
148,806
requirements. It has projected the
average annualized cost for all
respondents to be the following:
FERC–545
FERC–
549C
$211,680
0
$12,743,010
0
Total Annualized Costs ............................................................................................................................................
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Annualized Capital/Startup Costs ....................................................................................................................................
Annualized Costs (Operations & Maintenance) ..............................................................................................................
211,680
12,743,010
Total Cost for all Respondents =
$12,954,690.
18. OMB regulations 18 require OMB
to approve certain information
collection requirements imposed by
agency rule. The Commission is
submitting notification of this Final
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: Information 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: The
Commission’s regulations adopted in
this rule are necessary to increase the
efficiency of the pipeline grid, make
pipelines’ electronic communications
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. The information collection
requirements of this Final 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,
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)
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for general industry oversight, and to
supplement the documentation used
during the Commission’s audit process.
20. Internal Review: The Commission
has reviewed the requirements
pertaining to business practices and
electronic communication with
interstate natural gas pipelines and has
made a determination that these
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.
21. Interested persons may obtain
information on the reporting
requirements by contacting the
following:
Federal Energy Regulatory Commission,
888 First Street, NE., Washington, DC
18 5
CFR 1320.11.
U.S.C. 3504 note, Public Law 105–277,
1701, 112 Stat. 2681–749 (1998).
19 44
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20426; [Attention: Michael Miller,
Office of the Executive Director,
Phone: (202) 502–8415, fax: (202)
273–0873, e-mail:
michael.miller@ferc.gov;] or by
contacting:
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].
VI. Environmental Analysis
22. 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 adopted
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 and electric power that
requires no construction of facilities.
Therefore, an environmental assessment
is unnecessary and has not been
prepared in this Final Rule.
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VII. Regulatory Flexibility Act
23. The Regulatory Flexibility Act of
1980 (RFA) 22 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.23
24. The regulations we are adopting in
this Final Rule 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.24 Most companies regulated by
20 Regulations Implementing the National
Environmental Policy Act, Order No. 486, 52 FR
47897 (Dec. 17, 1987), FERC Stats. & Regs. ¶ 30,783
(1987).
21 18 CFR 380.4
22 5 U.S.C. 601–612.
23 5 U.S.C. 601–604.
24 5 U.S.C. 601(3), citing section 3 of the Small
Business Act, 15 U.S.C. 623. Section 3 of the SBA
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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–549C 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
reasonableness 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.
25. Accordingly, pursuant to section
605(b) of the RFA, the Commission
hereby certifies that the regulations
adopted herein will not have a
significant adverse impact on a
substantial number of small entities.
VIII. Document Availability
26. 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.
27. From FERC’s Home Page on the
Internet, this information is available on
eLibrary. The full text of this document
is available on eLibrary 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
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
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.
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9165
digits of this document in the docket
number field. User assistance is
available for eLibrary and the FERC’s
Web site during normal business hours
from FERC Online Support at (202) 502–
6652 (toll-free at 1–866–208–3676) or email at ferconlinesupport@ferc.gov, or
the Public Reference Room at (202) 502–
8371, TTY (202) 502–8659. E-Mail the
Public Reference Room at
public.refererenceroom@ferc.gov.
IX. Effective Date and Congressional
Notification
28. These regulations are effective
April 2, 2009. The Commission has
determined, with the concurrence of the
Administrator of the Office of
Information and Regulatory Affairs of
OMB, that this rule is not a ‘‘major rule’’
as defined in section 351 of the Small
Business Regulatory Enforcement
Fairness Act of 1996.
List of Subjects in 18 CFR Part 284
Continental shelf, Incorporation by
reference, Natural gas, Reporting and
recordkeeping requirements.
By the Commission. Commissioner
Kelliher is not participating. Commissioner
Moeller concurring with a separate statement
attached.
Kimberly D. Bose,
Secretary.
In consideration of the foregoing, the
Commission amends Part 284 of 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:
■
§ 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);
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Federal Register / Vol. 74, No. 40 / Tuesday, March 3, 2009 / Rules and Regulations
(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.
*
*
*
*
*
Note: The following text will not appear in
the Code of Federal Regulations.
United States of America
Federal Energy Regulatory Commission
Docket No. RM96–1–029.
rmajette on PRODPC74 with RULES
Standards for Business Practices for
Interstate Natural Gas Pipelines
(Issued February 24, 2009.)
MOELLER, Commissioner, concurring:
The American Gas Association (AGA), in
its comments, contends that the NAESB
process takes too long to complete. Because
of that, AGA urges the Commission to review
its procedures and relationship with NAESB
with the goal of streamlining the process by
which business practices standards are
developed, approved and incorporated into
the Commission’s regulations. In particular,
AGA identifies delays that have occurred in
NAESB’s technical implementation as well as
in development and publication of standards.
I recognize that some of the delay may be
attributable to the Commission’s own
processes and priorities; however, AGA has
identified areas, such as technical
development, in which NAESB can improve
its procedures. I appreciate the Wholesale
Gas Quadrant’s current efforts as referenced
in the final rule (as well as the dedication of
NAESB staff) to improve its procedures, and
I urge NAESB and its volunteers to continue
its work to find and identify areas in which
its processes can become more efficient and
timely.
Philip D. Moeller,
Commissioner.
[FR Doc. E9–4295 Filed 3–2–09; 8:45 am]
BILLING CODE 6717–01–P
VerDate Nov<24>2008
14:43 Mar 02, 2009
Jkt 217001
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 55
[EPA–R04–OAR–2008–0681; FRL–8769–6]
Outer Continental Shelf Air
Regulations Consistency Update for
North Carolina
AGENCY: Environmental Protection
Agency (EPA).
ACTION: Final rule—consistency update.
SUMMARY: EPA is finalizing the update
of the Outer Continental Shelf (OCS) Air
Regulations proposed in the Federal
Register on November 5, 2008.
Requirements applying to OCS sources
located within 25 miles of states’
seaward boundaries must be updated
periodically to remain consistent with
the requirements of the corresponding
onshore area (COA), as mandated by the
Clean Air Act (‘‘CAA’’ or ‘‘the Act’’).
The portion of the OCS air regulations
that is being updated pertains to the
requirements for OCS sources for which
the State of North Carolina has been
designated COA. The effect of approving
the OCS requirements for the State of
North Carolina is to regulate emissions
from OCS sources in accordance with
the requirements onshore. The change
to the existing requirements discussed
below will be incorporated by reference
into the Code of Federal Regulations
(CFR) and is listed in the appendix to
the OCS air regulations. This action is
an annual update of the North
Carolina’s OCS Air Regulations. These
rules include revisions to existing rules
that already apply to OCS sources. No
comments were received on the
November 5, 2008, proposal.
DATES: Effective Date: This rule is
effective on April 2, 2009. The
incorporation by reference of certain
publications listed in this rule is
approved by the Director of the Federal
Register as of April 2, 2009.
ADDRESSES: EPA has established docket
number EPA–R04–OAR–2008–0681 for
this action. All documents in the docket
are listed on the https://
www.regulations.gov Web site. Although
listed in the index, some information is
not publicly available, i.e., CBI or other
information whose disclosure is
restricted by statute. Certain other
material, such as copyrighted material,
is not placed on the Internet and will be
publicly available only in hard copy
form. Publicly available docket
materials are available either
electronically through https://
www.regulations.gov or in hard copy at
the Air Permits Section, Air Planning
PO 00000
Frm 00008
Fmt 4700
Sfmt 4700
Branch, Air, Pesticides and Toxics
Management Division, U.S.
Environmental Protection Agency,
Region 4, 61 Forsyth Street, SW.,
Atlanta, Georgia 30303–8960. EPA
requests that if at all possible, you
contact the contact listed in the FOR
FURTHER INFORMATION CONTACT section to
schedule your inspection. The Regional
Office’s official hours of business are
Monday through Friday, 8:30 to 4:30,
excluding Federal holidays.
FOR FURTHER INFORMATION CONTACT:
Sean Lakeman, Air Permits Section, Air
Planning Branch, Air, Pesticides and
Toxics Management Division, U.S.
Environmental Protection Agency,
Region 4, 61 Forsyth Street, SW.,
Atlanta, Georgia 30303–8960. The
telephone number is (404) 562–9043.
Mr. Lakeman can also be reached via
electronic mail at
lakeman.sean@epa.gov.
SUPPLEMENTARY INFORMATION:
Throughout this document whenever
‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean
EPA. The following outline is provided
to aid in locating information in this
preamble.
I. Background and Purpose
II. EPA Action
III. Statutory and Executive Order Reviews
I. Background and Purpose
On November 5, 2008, EPA
promulgated 40 CFR part 55, which
established requirements to control air
pollution from OCS sources in order to
attain and maintain federal and state
ambient air quality standards and to
comply with the provisions of part C of
title I of the Act. Part 55 applies to all
OCS sources offshore of the states
except those located in the Gulf of
Mexico west of 87.5 degrees longitude.
Section 328 of the Act requires that for
such sources located within 25 miles of
a state’s seaward boundary, the
requirements shall be the same as would
be applicable if the sources were located
in the COA. Because the OCS
requirements are based on onshore
requirements, and onshore requirements
may change, section 328(a)(1) of the Act
requires that EPA update the OCS
requirements as necessary to maintain
consistency with onshore requirements.
Section 328(a) of the Act requires that
EPA establish requirements to control
air pollution from OCS sources located
within 25 miles of states’ seaward
boundaries that are the same as onshore
requirements. To comply with this
statutory mandate, EPA must
incorporate applicable onshore rules
into part 55 as they exist onshore. This
process is distinct from the State
Implementation Plan (SIP) process and
E:\FR\FM\03MRR1.SGM
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]]>Agencies
[Federal Register Volume 74, Number 40 (Tuesday, March 3, 2009)]
[Rules and Regulations]
[Pages 9162-9166]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-4295]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 284
[Docket No. RM96-1-029; Order No. 587-T]
Standards for Business Practices for Interstate Natural Gas
Pipelines
Issued February 24, 2009.
AGENCY: Federal Energy Regulatory Commission.
ACTION: Final Rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Energy Regulatory Commission (Commission) is
amending its regulations that establish standards for interstate
natural gas pipeline business practices and electronic communications
to incorporate by reference into its regulations the most recent
version of the standards, Version 1.8, adopted by the Wholesale Gas
Quadrant (WGQ) of the North American Energy Standards Board (NAESB) and
to make other minor corrections. This rule upgrades the Commission's
current business practice and communication standards to reflect the
latest version approved by the NAESB WGQ (i.e., the Version 1.8
Standards), and is necessary to increase the efficiency of the pipeline
grid, make pipelines' electronic communications more secure, and is
consistent with the mandate that agencies provide for electronic
disclosure of information.
DATES: This rule will become effective April 2, 2009. Natural gas
pipelines are required to implement these standards on the first day of
the month three months after the effective date of this rule and file
tariff sheets to reflect the changed standards on the first day of the
month one month after the effective date of this rule. The Director of
the Federal Register has approved the incorporation by reference of the
standards addressed in this Final Rule effective April 2, 2009.
FOR FURTHER INFORMATION CONTACT:
William Lohrman (technical issues), Office of Energy Market Regulation,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502-8070.
Kay Morice (technical issues), Office of Energy Market Regulation,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502-6507.
Caroline Daly (technical issues), Office of Energy Market Regulation,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502-8931.
Gary D. Cohen (legal issues), Office of the General Counsel, Federal
Energy Regulatory Commission, 888 First Street, NE., Washington, DC
20426, (202) 502-8321.
SUPPLEMENTARY INFORMATION:
Before Commissioners: Jon Wellinghoff, Acting Chairman; Suedeen G.
Kelly, Marc Spitzer, and Philip D. Moeller
1. The Federal Energy Regulatory Commission (Commission) is
amending Sec. 284.12 of its regulations (which establishes standards
for natural gas pipeline business practices and electronic
communications) \1\ to incorporate by reference the most recent version
(Version 1.8) of the standards promulgated by the Wholesale Gas
Quadrant (WGQ) of the North American Energy Standards Board (NAESB). In
addition, the Commission is amending Sec. 284.12(b) of its regulations
to make minor corrections.
---------------------------------------------------------------------------
\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), 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).
---------------------------------------------------------------------------
\2\ Standards for Business Practices of Interstate Natural Gas
Pipelines, Order No. 587, 61 FR 39053 (July 26, 1996), FERC Stats. &
Regs., ] 31,038 (1996).
---------------------------------------------------------------------------
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.\3\ NAESB reported 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,\4\ 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.
NAESB also reported that the Version 1.8 standards included several
standards already adopted by the Commission, including gas-electric
coordination standards to support communications between pipelines and
gas-fired generators,\5\ 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.\6\
---------------------------------------------------------------------------
\3\ 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.
\4\ In this Final Rule, the Commission is requiring interstate
natural gas pipelines to comply with these standards. We are not
making these standards mandatory for retail transactions.
\5\ Standards for Business Practices for Interstate Natural Gas
Pipelines; Standards for Business Practices for Public Utilities,
Order No. 698, 72 FR 38757 (July 16, 2007), FERC Stats, & Regs ]
31,251 (2007); order granting clarification and denying reh'g, Order
No. 698-A, 121 FERC ] 61,264 (2007).
\6\ Standards of Conduct for Transmission Providers, Order No.
2004, 68 FR 69134 (Dec. 11, 2003), FERC Stats. & Regs., ] 31,155
(2003); order on reh'g, Order No. 2004-B, 69 FR 23562 (Apr. 29,
2004), FERC Stats. & Regs., ] 31,161 (2004); order on reh'g, Order
No. 2004-B, 69 FR 48371 (Aug. 10, 2004), FERC Stats. & Regs., ]
31,166 (2004); order on reh'g, Order No. 2004-C, 70 FR 284 (Jan. 4,
2005), FERC Stats. & Regs., ] 31,172 (2004); order on clarification
and reh'g, Order No. 2004-D, 110 FERC ] 61,320 (2005).
---------------------------------------------------------------------------
4. On September 18, 2008, the Commission issued a Notice of
Proposed Rulemaking (NOPR) \7\ that proposed to incorporate by
reference the WGQ's Version 1.8 Standards and to make minor corrections
to Sec. 284.12(b) of the Commission's regulations. The sole comment
was filed by American Gas Association (AGA), which supported the
adoption of Version 1.8 of the standards, but requested modifications
to the Commission's relationship with NAESB.
---------------------------------------------------------------------------
\7\ Standards for Business Practices for Interstate Natural Gas
Pipelines, Notice of Proposed Rulemaking, 73 FR 55460 (Sep. 18,
2008), FERC Stats. & Regs. ] 32,636 (2008).
---------------------------------------------------------------------------
II. Discussion
5. The Commission's NOPR proposal to amend part 284 of its
regulations to incorporate by reference Version 1.8 of the NAESB WGQ's
consensus standards,\8\ with the two exceptions
[[Page 9163]]
noted in the NOPR,\9\ was not opposed by any commenter. 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\
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\8\ In its Version 1.8 Standards, the WGQ 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.
It renamed the EDM Related Standards, which are now entitled the
Quadrant Electronic Delivery Mechanism Related Standards.
\9\ As proposed in the NOPR, the Commission is continuing its
past practice and is not incorporating 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 is amending Sec. 284.12(b) to
make two minor corrections. First, we correct the reference to the
``Gas Industry Standards Board'' to refer to the ``North American
Energy Standards Board Wholesale Gas Quadrant.'' Second, we correct
the reference to the paragraph incorporating the NAESB standards by
reference from paragraph (b)(1) to paragraph (a)(1).
---------------------------------------------------------------------------
6. 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 determined by the agencies
unless use of such standards would be inconsistent with applicable law
or otherwise impractical.\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\ Public Law 104-113, Sec. 12(d), 110 Stat. 775 (1996), 15
U.S.C. 272 note (1997).
---------------------------------------------------------------------------
7. One of the Version 1.8 standards, WGQ Standard 4.3.23, provides
guidelines for how pipelines post transmission provider Standards of
Conduct-related information on their Web sites. However, the Commission
issued revised Standards of Conduct requirements in Order No. 717 \13\
subsequent to the Version 1.8 standards adopted by NAESB. As a result,
some of the data templates in the NAESB WGQ 4.3.23 standard are
unnecessary. We will incorporate Standard 4.3.23, because it contains
requirements for posting that are applicable under Order No. 717.
However, pipelines will not be required to continue to post affiliate
information that is no longer required to be maintained under the
Commission's regulations as amended by Order No. 717.
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\13\ Standards of Conduct for Transmission Providers, Order No.
717, 73 FR 63796 (Oct. 27, 2008), FERC Stats. & Regs ] 31,280
(2008), reh'g pending.
---------------------------------------------------------------------------
8. In addition to comments in support of the proposed rule, AGA
requested that the Commission take a more active role in shepherding
the development of wholesale gas standards. In brief, AGA is concerned
that the standards process takes too long to complete.
9. We appreciate AGA's desire that standard development proceed
quickly. We note that NAESB has taken a continuing interest in
improving its standards-setting process, and has, for example, recently
adopted policies to allow standards setting decisions to be made more
quickly for important efforts.\14\
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\14\ NAESB Policy on Efficient Standards Development, adopted by
NAESB Board of Directors, Sep. 25, 2008, https://www.naesb.org/pdf3/
bd092508a2.doc.
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III. Implementation Dates and Procedures
10. Based on past practice, we are adopting an implementation
schedule designed to provide natural gas pipelines adequate time to
prepare for these changes. Pipelines are required to implement the
standards we are incorporating by reference in this Final Rule by the
first day of the month three months after the effective date of this
Final Rule. In addition, pipelines are required to file tariff sheets
to reflect the changed standards on the first day of the month one
month after the effective date of this Final Rule to be effective as of
the implementation date. Pipelines incorporating the Version 1.8
standards into their tariffs must include the standard number and
Version 1.8.
IV. Notice of Use of Voluntary Consensus Standards
11. In section 12(d) of NTT&AA, Congress affirmatively requires
federal agencies to use technical standards developed by voluntary
consensus standards organizations, like NAESB, as the means to carry
out policy objectives or activities determined by the agencies unless
use of such standards would be inconsistent with applicable law or
otherwise impractical.\15\ NAESB approved the standards under its
consensus procedures. Office of Management and Budget Circular A-119
(Sec. 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. On September 18, 2008, the
Commission issued a NOPR that proposed to incorporate by reference
NAESB's Version 1.8 Standards. The Commission took comments on the NOPR
into account in fashioning this Final Rule.
---------------------------------------------------------------------------
\15\ Public Law 104-113, Sec. 12(d), 110 Stat. 775 (1996), 15
U.S.C. 272 note (1997).
---------------------------------------------------------------------------
V. Information Collection Statement
12. The Office of Management and Budget's (OMB) regulations in 5
CFR 1320.11 require that it approve certain reporting and recordkeeping
requirements (collections of information) imposed by an agency. Upon
approval of a collection of
[[Page 9164]]
information, OMB will assign an OMB control number and an expiration
date. Respondents subject to the filing requirements of this Final Rule
will not be penalized for failing to respond to these collections of
information unless the collections of information display a valid OMB
control number.
13. This Final Rule upgrades 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).
14. The implementation of these standards is necessary to increase
the efficiency of the pipeline grid, make pipelines' electronic
communications more secure, and is consistent with the mandate that
agencies provide for electronic disclosure of information. Requiring
such information ensures a common means of communication and ensures
common business practices that provide participants engaged in
transactions with interstate pipelines with timely information and
uniform business procedures across multiple pipelines.
15. The following burden estimates include the costs to implement
the WGQ's revised business practice standards and communication
protocols for interstate natural gas pipelines. The implementation of
these data requirements will help the Commission carry out its
responsibilities under the Natural Gas Act of promoting the efficiency
and reliability of the natural gas industry's operations. In addition,
the Commission's Office of Energy Market Regulation will use the data
for general industry oversight.
16. The Commission sought comments on the Commission's estimate
provided in the NOPR of the burden associated with adoption of the NOPR
proposals. In response to the NOPR, no comments were filed that
addressed the reporting burden imposed by these requirements. Therefore
the Commission will use these same estimates in this Final Rule. The
substantive issue raised by the sole commenter on the NOPR is addressed
in this preamble.
----------------------------------------------------------------------------------------------------------------
No. of No. of responses Hours per Total No. of
Data collection respondents per respondent response 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.
17. Information Collection Costs: The Commission sought 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 & Maintenance)... 0 0
-------------------------
Total Annualized Costs.................... 211,680 12,743,010
------------------------------------------------------------------------
Total Cost for all Respondents = $12,954,690.
18. OMB regulations \18\ require OMB to approve certain information
collection requirements imposed by agency rule. The Commission is
submitting notification of this Final 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: Information 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: The Commission's regulations adopted in
this rule are necessary to increase the efficiency of the pipeline
grid, make pipelines' electronic communications 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, Public Law 105-277, 1701, 112 Stat.
2681-749 (1998).
---------------------------------------------------------------------------
19. The information collection requirements of this Final 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.
20. Internal Review: The Commission has reviewed the requirements
pertaining to business practices and electronic communication with
interstate natural gas pipelines and has made a determination that
these 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.
21. Interested persons may obtain information on the reporting
requirements by contacting the following:
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC
[[Page 9165]]
20426; [Attention: Michael Miller, Office of the Executive Director,
Phone: (202) 502-8415, fax: (202) 273-0873, e-mail:
michael.miller@ferc.gov;] or by contacting:
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].
VI. Environmental Analysis
22. 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 adopted 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 and electric power that requires no
construction of facilities. Therefore, an environmental assessment is
unnecessary and has not been prepared in this Final Rule.
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\20\ Regulations Implementing the National Environmental Policy
Act, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs.
] 30,783 (1987).
\21\ 18 CFR 380.4
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VII. Regulatory Flexibility Act
23. The Regulatory Flexibility Act of 1980 (RFA) \22\ 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.\23\
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\22\ 5 U.S.C. 601-612.
\23\ 5 U.S.C. 601-604.
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24. The regulations we are adopting in this Final Rule 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.\24\ 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-549C
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 reasonableness 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.
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\24\ 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 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.
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25. Accordingly, pursuant to section 605(b) of the RFA, the
Commission hereby certifies that the regulations adopted herein will
not have a significant adverse impact on a substantial number of small
entities.
VIII. Document Availability
26. 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.
27. From FERC's Home Page on the Internet, this information is
available on eLibrary. The full text of this document is available on
eLibrary 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. User assistance is available for eLibrary and the FERC's
Web site during normal business hours from FERC Online Support at (202)
502-6652 (toll-free at 1-866-208-3676) or e-mail at
ferconlinesupport@ferc.gov, or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. E-Mail the Public Reference Room at
public.refererenceroom@ferc.gov.
IX. Effective Date and Congressional Notification
28. These regulations are effective April 2, 2009. The Commission
has determined, with the concurrence of the Administrator of the Office
of Information and Regulatory Affairs of OMB, that this rule is not a
``major rule'' as defined in section 351 of the Small Business
Regulatory Enforcement Fairness Act of 1996.
List of Subjects in 18 CFR Part 284
Continental shelf, Incorporation by reference, Natural gas,
Reporting and recordkeeping requirements.
By the Commission. Commissioner Kelliher is not participating.
Commissioner Moeller concurring with a separate statement attached.
Kimberly D. Bose,
Secretary.
0
In consideration of the foregoing, the Commission amends Part 284 of
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
0
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.
0
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);
[[Page 9166]]
(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.
* * * * *
Note: The following text will not appear in the Code of Federal
Regulations.
United States of America
Federal Energy Regulatory Commission
Docket No. RM96-1-029.
Standards for Business Practices for Interstate Natural Gas Pipelines
(Issued February 24, 2009.)
MOELLER, Commissioner, concurring:
The American Gas Association (AGA), in its comments, contends
that the NAESB process takes too long to complete. Because of that,
AGA urges the Commission to review its procedures and relationship
with NAESB with the goal of streamlining the process by which
business practices standards are developed, approved and
incorporated into the Commission's regulations. In particular, AGA
identifies delays that have occurred in NAESB's technical
implementation as well as in development and publication of
standards.
I recognize that some of the delay may be attributable to the
Commission's own processes and priorities; however, AGA has
identified areas, such as technical development, in which NAESB can
improve its procedures. I appreciate the Wholesale Gas Quadrant's
current efforts as referenced in the final rule (as well as the
dedication of NAESB staff) to improve its procedures, and I urge
NAESB and its volunteers to continue its work to find and identify
areas in which its processes can become more efficient and timely.
Philip D. Moeller,
Commissioner.
[FR Doc. E9-4295 Filed 3-2-09; 8:45 am]
BILLING CODE 6717-01-P
