Limiting Authorizations to Proceed With Construction Activities Pending Rehearing, 43077-43087 [2021-16812]
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Federal Register / Vol. 86, No. 149 / Friday, August 6, 2021 / Rules and Regulations
List of Subjects in 14 CFR Part 39
Air transportation, Aircraft, Aviation
safety, Incorporation by reference,
Safety.
manufacturer in the Accomplishment/
Instructions, paragraph 2.2, of the MSB, are
not required by this AD.
The Amendment
Accordingly, under the authority
delegated to me by the Administrator,
the FAA amends 14 CFR part 39 as
follows:
After the effective date of this AD, do not
install onto any engine an oil pump with P/
N E4A–50–000–BHY and an S/N listed in
paragraph 1.2., Engines Affected, Tables 2
and 3, of the MSB.
PART 39—AIRWORTHINESS
DIRECTIVES
For the purpose of this AD, a ‘‘part eligible
for installation’’ is an oil pump that is not P/
N E4A–50–000–BHY or an oil pump P/N
E4A–50–000–BHY and an S/N that is not
listed in paragraph 1.2., Engines Affected,
Tables 2 and 3, of the MSB.
(j) Definitions
1. The authority citation for part 39
continues to read as follows:
■
Authority: 49 U.S.C. 106(g), 40113, 44701.
§ 39.13
[Amended]
2. The FAA amends § 39.13 by adding
the following new airworthiness
directive:
■
2021–17–01 Austro Engine GmbH:
Amendment 39–21684; Docket No.
FAA–2021–0654; Project Identifier
MCAI–2021–00682–E.
(a) Effective Date
This airworthiness directive (AD) is
effective August 23, 2021.
(b) Affected ADs
None.
(d) Subject
Joint Aircraft System Component (JASC)
Code 8550, Reciprocating Engine Oil System.
(e) Unsafe Condition
This AD was prompted by a report of oil
pressure loss on an E4 model diesel piston
engine. The FAA is issuing this AD to
prevent failure of the engine. The unsafe
condition, if not addressed, could result in
failure of the engine, in-flight shutdown, and
loss of the airplane.
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(f) Compliance
Comply with this AD within the
compliance times specified, unless already
done.
(h) No Communication or Reporting
Requirements
The instructions to contact the
manufacturer and report information to the
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Special flight permits, as described in
Section 21.197 and Section 21.199 of the
Federal Aviation Regulations (14 CFR 21.197
and 21.199), are subject to the requirements
of paragraph (k)(1) and (2) of this AD.
(1) Operators of a twin-engine airplane that
has one or two Model E4 engines in
configuration ‘‘–B’’ or ‘‘–C’’ or Model E4P
engines installed may perform a one-time
non-revenue ferry flight to a location where
the engine can be removed from service. This
ferry flight must be performed with only
essential flight crew.
(2) All other ferry flights are prohibited.
(1) The Manager, ECO Branch, FAA, has
the authority to approve AMOCs for this AD,
if requested using the procedures found in 14
CFR 39.19. In accordance with 14 CFR 39.19,
send your request to your principal inspector
or local Flight Standards District Office, as
appropriate. If sending information directly
to the manager of the ECO Branch, send it to
the attention of the person identified in
Related Information. You may email your
request to: ANE-AD-AMOC@faa.gov.
(2) Before using any approved AMOC,
notify your appropriate principal inspector,
or lacking a principal inspector, the manager
of the local flight standards district office/
certificate holding district office.
(m) Related Information
(g) Required Actions
Before further flight after the effective date
of this AD, remove the oil pump, part
number (P/N) E4A–50–000–BHY, with a
serial number (S/N) listed in paragraph 1.2.,
Engines Affected, Tables 2 and 3, of Austro
Engine GmbH Mandatory Service Bulletin
No. MSB–E4–031/1, Revision No. 1, dated
July 1, 2021 (the MSB), from service and
replace with a part eligible for installation
using the Accomplishment/Instructions,
paragraph 2.2.1 or paragraph 2.2.2., of the
MSB, as applicable.
16:05 Aug 05, 2021
(k) Special Flight Permit
(l) Alternative Methods of Compliance
(AMOCs)
(c) Applicability
This AD applies to Austro Engine GmbH
E4 and E4P model diesel piston engines.
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(i) Installation Prohibition
(1) For more information about this AD,
contact Wego Wang, Aviation Safety
Engineer, ECO Branch, FAA, 1200 District
Avenue, Burlington, MA 01803; phone: (781)
238–7134; fax: (781) 238–7199; email:
wego.wang@faa.gov.
(2) Refer to European Union Aviation
Safety Agency (EASA) AD 2021–0143–E,
dated June 16, 2021, for more information.
You may examine the EASA AD in the AD
docket at https://www.regulations.gov by
searching for and locating Docket No. FAA–
2021–0654.
(n) Material Incorporated by Reference
(1) The Director of the Federal Register
approved the incorporation by reference
(IBR) of the service information listed in this
paragraph under 5 U.S.C. 552(a) and 1 CFR
part 51.
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(2) You must use this service information
as applicable to do the actions required by
this AD, unless the AD specifies otherwise.
(i) Austro Engine Mandatory Service
Bulletin No. MSB–E4–031/1, Revision No. 1,
dated July 1, 2021.
(ii) [Reserved]
(3) For Austro Engine service information
identified in this AD, you may contact Austro
Engine GmbH, Rudolf-Diesel-Strasse 11, 2700
Weiner Neustadt, Austria; phone: +43 2622
23000 2525; website: www.austroengine.at.
(4) You may view this service information
at the FAA, Airworthiness Products Section,
Operational Safety Branch, 1200 District
Avenue, Burlington, MA 01803. For
information on the availability of this
material at the FAA, call (781) 238–7759.
(5) You may view this service information
that is incorporated by reference at the
National Archives and Records
Administration (NARA). For information on
the availability of this material at NARA,
email: fr.inspection@nara.gov, or go to:
https://www.archives.gov/federal-register/cfr/
ibr-locations.html.
Issued on August 2, 2021.
Lance T. Gant,
Director, Compliance & Airworthiness
Division, Aircraft Certification Service.
[FR Doc. 2021–16895 Filed 8–4–21; 11:15 am]
BILLING CODE 4910–13–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
18 CFR Parts 153 and 157
[Docket No. RM20–15–002; Order No. 871–
C]
Limiting Authorizations to Proceed
With Construction Activities Pending
Rehearing
Federal Energy Regulatory
Commission, Department of Energy.
ACTION: Order addressing arguments
raised on rehearing and clarification.
AGENCY:
The Federal Energy
Regulatory Commission addresses
requests for rehearing and clarification
of Order No. 871–B.
DATES: The effective date of the
document published on May 13, 2021
(86 FR 26,150), is confirmed: June 14,
2021.
SUMMARY:
Tara
DiJohn, Office of the General Counsel,
Federal Energy Regulatory Commission,
888 First Street NE, Washington, DC
20426, (202) 502–8671, tara.dijohn@
ferc.gov.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
Table of Contents
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Federal Register / Vol. 86, No. 149 / Friday, August 6, 2021 / Rules and Regulations
Paragraph
No.
I. Background .......................................................................................................................................................................................
II. Discussion .......................................................................................................................................................................................
A. Rule Limiting Construction Authorizations Pending Rehearing ...............................................................................................
1. Opposition to Project Need ...............................................................................................................................................
2. Amendment Orders Authorizing Mid-Construction Changes ............................................................................................
3. Post-Allegheny Rehearing Treatment ...............................................................................................................................
4. Additional Clarifications to Regulation Text ......................................................................................................................
5. Effective Date of Construction Authorization Issuances ...................................................................................................
6. Procedural Nature of Rule ................................................................................................................................................
B. Policy of Presumptively Staying Section 7(c) Certificate Orders ............................................................................................
1. Policy Does Not Violate NGA or APA ..............................................................................................................................
2. Qualifying Landowner Rehearing Requests .....................................................................................................................
3. Commitment to Refrain from Exercise of Eminent Domain .............................................................................................
4. Claims of Burden Shifting .................................................................................................................................................
5. Consideration of Industry Concerns .................................................................................................................................
6. Landowner Ability to Seek Judicial Stay ...........................................................................................................................
C. Commission Determination ......................................................................................................................................................
III. Document Availability .....................................................................................................................................................................
IV. Dates ..............................................................................................................................................................................................
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1. On May 4, 2021, the Federal Energy
Regulatory Commission (Commission)
issued an order addressing arguments
raised on rehearing and clarification,
and setting aside, in part, its prior Order
No. 871.1 Order No. 871–B revised the
rule previously adopted by the
Commission in Order No. 871 2 to
narrow the scope of its application and
to incorporate a time limitation for the
Commission to preclude issuances of
authorizations to proceed with
construction activities. Order No. 871–
B also announced a new general policy
of presumptively staying certificate
orders issued pursuant to section 7(c) of
the Natural Gas Act (NGA) 3 during the
30-day rehearing period and pending
Commission resolution of any timely
requests for rehearing filed by
landowners. On June 3, 2021, the
Interstate Natural Gas Association of
America (INGAA), the Enbridge Gas
Pipelines (Enbridge),4 and Mountain
1 Limiting Authorizations to Proceed with
Construction Activities Pending Rehearing, Order
No. 871–B, 86 FR 26150 (May 13, 2021), 175 FERC
¶ 61,098 (2021).
2 The Commission issued its June 9, 2020 Order
No. 871 to preclude the issuance of authorizations
to proceed with construction activities with respect
to orders granting authorizations under sections 3
and 7 of the Natural Gas Act (NGA) until the
Commission acts on the merits of any timely-filed
request for rehearing or until the deadline for filing
a timely request for rehearing has passed with no
such request being filed. Limiting Authorizations to
Proceed with Construction Activities Pending
Rehearing, Order No. 871, 85 FR 40113 (Jul. 06,
2020), 171 FERC ¶ 61,201 (2020).
3 15 U.S.C. 717f(c).
4 The Enbridge Gas Pipelines include Algonquin
Gas Transmission, LLC; Big Sandy Pipeline, LLC;
Bobcat Gas Storage; East Tennessee Natural Gas,
LLC; Garden Banks Gas Pipeline, LLC, Market Hub
Partners Holding, LLC; Mississippi Canyon Gas
Pipeline, LLC; Saltville Gas Storage Company
L.L.C.; and Texas Eastern Transmission, LP. The
Enbridge Gas Pipelines also include natural gas
companies in which affiliates of the Enbridge Gas
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Valley Pipeline, LLC (Mountain Valley)
requested clarification and rehearing of
Order No. 871–B.
2. Pursuant to Allegheny Defense
Project v. FERC,5 the rehearing requests
filed in this proceeding may be deemed
denied by operation of law. However, as
permitted by section 19(a) of the NGA,6
we are modifying the discussion in
Order No. 871–B and continue to reach
the same result in this proceeding, as
discussed below.7
I. Background
3. In Order No. 871, the Commission
explained that historically, due to the
complex nature of the matters raised on
rehearing of orders granting
authorizations under NGA sections 3
and 7, the Commission had often issued
an order (known as a tolling order) by
the thirtieth day following the filing of
a rehearing request, allowing itself
additional time to provide thoughtful,
well-considered attention to the issues
raised on rehearing.
4. In order to balance its commitment
to expeditiously responding to parties’
Pipelines own a joint venture interest, including
Alliance Pipeline L.P., Gulfstream Natural Gas
System, L.L.C.; Maritimes & Northeast Pipeline,
L.L.C.; Nautilus Pipeline Company, L.L.C., NEXUS
Gas Transmission, LLC; Sabal Trail Transmission,
LLC; Southeast Supply Header, LLC; and Steckman
Ridge, LP.
5 964 F.3d 1 (D.C. Cir. 2020) (en banc)
(Allegheny).
6 15 U.S.C. 717r(a) (‘‘Until the record in a
proceeding shall have been filed in a court of
appeals, as provided in subsection (b), the
Commission may at any time, upon reasonable
notice and in such manner as it shall deem proper,
modify or set aside, in whole or in part, any finding
or order made or issued by it under the provisions
of this chapter.’’).
7 Allegheny, 964 F.3d at 16–17. The Commission
is not changing the outcome of Order No. 871–B.
See Smith Lake Improvement & Stakeholders Ass’n
v. FERC, 809 F.3d 55, 56–57 (D.C. Cir. 2015).
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concerns in comprehensive orders on
rehearing and the serious concerns
posed by the possibility of construction
proceeding prior to the completion of
agency review, the Commission, in
Order No. 871, exercised its discretion
by amending its regulations to add new
§ 157.23, which precludes the issuance
of authorizations to proceed with
construction of projects authorized
under NGA sections 3 and 7 during the
period for filing requests for rehearing of
the initial orders or while rehearing is
pending.8
5. Three weeks after the Commission
issued Order No. 871, the U.S. Court of
Appeals for the District of Columbia
Circuit (D.C. Circuit) issued an en banc
decision in Allegheny.9 The court held
that the Commission’s use of tolling
orders solely to allow itself additional
time to consider an application for
rehearing does not preclude operation of
the NGA’s deemed denial provision,10
which enables a rehearing applicant to
seek judicial review after thirty days of
agency inaction.11 The court explained
that, to prevent an application for
rehearing from being deemed denied,
the Commission must act on an
application for rehearing within thirty
days of its filing by taking one of the
four NGA-enumerated actions: grant
rehearing, deny rehearing, or abrogate or
modify its order without further
hearing.12
6. Shortly thereafter, on July 9, 2020,
the Commission received three timely
8 Order No. 871 also revised § 153.4 (general
requirements for NGA section 3 applications) of the
Commission’s regulations to incorporate a crossreference to § 157.23.
9 964 F.3d 1.
10 15 U.S.C. 717r(a).
11 Allegheny, 964 F.3d at 18–19.
12 See id. at 13 (quoting 15 U.S.C. 717r(a)).
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requests for clarification and rehearing
of Order No. 871. To facilitate
reconsideration of Order No. 871 and
ensure a complete record for further
action, the Commission in Order No.
871–A subsequently provided interested
parties an opportunity to comment on
the arguments raised on rehearing and
specific questions posed by the
Commission.13 In response, the
Commission received twelve initial
briefs and five reply briefs from a
variety of stakeholders, including states,
landowners, natural gas companies, and
a consortium of public interest
organizations.14
7. In consideration of the arguments
raised on rehearing and in the briefs, the
Commission in Order No. 871–B revised
§ 157.23 of its regulations to provide
that the rule prohibiting the issuance of
construction authorizations pending
rehearing will apply only when a
request for rehearing raises issues
reflecting opposition to project
construction, operation, or need.15
Order No. 871–B further revised the rule
to provide that the rule’s restriction on
issuing construction authorizations
while a qualifying rehearing request
remains pending will expire 90 days
following the date that such request may
be deemed denied by operation of law
under NGA section 19(a).16
8. In addition, the Commission in
Order No. 871–B announced its intent to
stay its NGA section 7(c) certificate
orders during the 30-day rehearing
period and pending Commission
resolution of any timely requests for
rehearing filed by landowners.17 We
explained that this policy will be
applied on a particularized basis,
subject to certain exceptions and, if
imposed, any stay would be lifted no
later than 90 days following the date
that a qualifying request for rehearing
may be deemed denied by operation of
law.18
9. On June 3, 2021, INGAA and
Enbridge filed requests for clarification
and rehearing of Order No. 871–B.19 On
the same day, Mountain Valley filed a
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13 Limiting
Authorizations to Proceed with
Construction Activities Pending Rehearing, Order
No. 871–A, 86 FR 7643 (Feb. 1, 2021), 174 FERC
¶ 61,050 (2021).
14 See Order No. 871–B, 175 FERC ¶ 61,098 at PP
8–9 (describing briefs received).
15 Order No. 871–B, 175 FERC ¶ 61,098 at PP 14,
30.
16 Id. PP 26, 30.
17 Id. PP 43–51.
18 See id. PP 46, 51.
19 INGAA’s June 3, 2021 Request for Clarification
and Rehearing (INGAA Rehearing); Enbridge’s June
3, 2021 Request for Clarification and Rehearing
(Enbridge Rehearing).
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request for clarification, or, in the
alternative, rehearing.20
II. Discussion
10. INGAA’s and Enbridge’s petitions
include several requests for
clarification, or, in the alternative,
rehearing of the rule, as revised in Order
No. 871–B, and of the Commission’s
announcement that it would
prospectively stay certain section 7(c)
certificate orders pending rehearing.
Mountain Valley’s petition is focused on
a single issue regarding the rule’s
application: whether the rule would
apply if rehearing is sought of an
amendment order approving a minor
mid-construction change that would
typically be submitted as a variance
request. Below, we first respond to the
various requests for clarification or
rehearing of the revised rule and then to
requests for clarification or rehearing of
the Commission’s policy of staying
section 7(c) certificate orders pending
rehearing.
A. Rule Limiting Construction
Authorizations Pending Rehearing
1. Opposition to Project Need
11. In Order No. 871–B, the
Commission revised § 157.23(b) of its
regulations as follows:
With respect to orders issued pursuant to
15 U.S.C. 717b or 15 U.S.C. 717f(c)
authorizing the construction of new natural
gas transportation, export, or import
facilities, no authorization to proceed with
construction activities will be issued:
(a) until the time for the filing of a request
for rehearing under 15 U.S.C. 717r(a) has
expired with no such request being filed, or
(b) if a timely request for rehearing raising
issues reflecting opposition to project
construction, operation, or need is filed,
until: (i) The request is no longer pending
before the Commission, (ii) the record of the
proceeding is filed with the court of appeals,
or (iii) 90 days has passed after the date that
the request for rehearing may be deemed to
have been denied under 15 U.S.C. 717r(a).21
12. INGAA and Enbridge request that
the Commission clarify the meaning of
‘‘opposition to project . . . need.’’
Specifically, INGAA and Enbridge urge
the Commission to clarify that this
phrase refers only to situations in which
a project opponent claims that there is
insufficient evidence of market need for
a project under the NGA section 7
economic balancing test.22 INGAA
maintains that ‘‘virtually any generic
20 Mountain Valley’s June 3, 2021 Request for
Clarification or, in the Alternative, Rehearing
(Mountain Valley Rehearing).
21 Order No. 871–B, 175 FERC ¶ 61,098 at P 30
(emphasis in the original reflecting adopted
revisions to § 157.23).
22 See INGAA Rehearing at 9; Enbridge Rehearing
at 13–14.
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opposition to a project’’ could be
viewed as an argument that the new
facilities are not ‘‘needed,’’ and that if
not clarified, this phrasing could
prohibit the issuance of construction
authorization whenever any rehearing
request is filed by a party generally
opposed to development.23 Similarly,
Enbridge posits that parties could delay
construction for months by claiming on
rehearing that a project is not needed
because of ‘‘broad climate change
concerns.’’ 24
13. We deny INGAA’s and Enbridge’s
requests for clarification on this issue.
The petitioners’ interpretation construes
the language of the rule too narrowly.
Adopting this suggestion ‘‘would
exclude from the rule’s purview
rehearing requests raising
environmental matters or general
opposition to a project, as well as
rehearing requests filed by members of
communities that would be impacted by
the construction of new natural gas
facilities.’’ 25 The Commission has
already stated that we did not intend
such a result.26 We continue to find it
appropriate ‘‘to refrain from permitting
construction to proceed until the
Commission has acted upon any request
for rehearing that opposes project
construction and operation or raises
issues regarding project need, regardless
of the basis or whether rehearing is
sought by an affected landowner.’’ 27
2. Amendment Orders Authorizing MidConstruction Changes
14. INGAA and Mountain Valley seek
clarification that the rule does not apply
to amendment orders that authorize
limited changes while project
construction is ongoing, which the they
refer to as ‘‘mid-construction changes,’’
or, in the alternative, rehearing.28
INGAA explains that mid-construction
changes—such as construction method
changes, temporary workspaces
changes, and minor route realignments
that do not involve new facilities or new
landowners—are traditionally filed by
project developers as variance
requests.29 However, INGAA notes that
23 INGAA
Rehearing at 10, 11.
Rehearing at 13.
25 Order No. 871–B, 175 FERC ¶ 61,098 at P 15.
26 Id.
27 Id. (emphasis added).
28 See INGAA Rehearing at 11–20; Mountain
Valley Rehearing at 5–9.
29 See INGAA Rehearing at 13–15 (providing
examples of prior variance approvals allowing:
temporary modification to location of temporary
access road to accommodate imminent longwall
mining activities in vicinity of construction area, a
minor pipeline route shift to avoid an obstruction
placed on approved pipeline route, modifications to
pipeline route and road crossing method due to
unanticipated subsurface conditions).
24 Enbridge
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the Commission can convert midconstruction changes submitted as a
variance request into certificate
amendment proceedings. In addition, a
project developer may on its own accord
decide to seek approval of certain midconstruction changes by filing an
amendment application rather than a
variance request.30 INGAA and
Mountain Valley seek assurance that the
rule would not apply to amendment
orders authorizing mid-construction
changes that would traditionally be
approved through the variance process.
To support this request, INGAA and
Mountain Valley point to the language
of § 157.23’s introductory text, which
references orders authorizing ‘‘the
construction of new natural gas
transportation, export, or import
facilities,’’ and explain that the type of
mid-construction amendment
proceedings for which it seeks
clarification do not involve new
facilities.31
15. If the Commission declines to
grant clarification, INGAA and
Mountain Valley request rehearing of
this issue. If the Commission agrees that
the rule does not apply to orders
authorizing limited mid-construction
changes, INGAA further asks the
Commission to clarify that it retains
discretion to issue an authorization to
proceed with construction during the
30-day rehearing period following such
an order.32
16. In Order No. 871–B, we explained
that the rule limiting construction
authorizations would not apply to a
request for rehearing of an non-initial
order that merely implements the terms,
conditions, or provisions of an initial
authorizing order, ‘‘such as a delegated
order issuing a notice to proceed with
construction, approving a variance
request, or allowing the applicant to
place the project, or a portion thereof, in
service.’’ 33 With respect to amendment
orders, the Commission stated that the
rule would apply only to the facilities
approved by the amendment order for
which rehearing is sought: it would not
relate back to any facilities previously
approved by the Commission in the
30 See, e.g., Mountain Valley Rehearing at 5
(describing its amendment application submitted in
Docket No. CP21–57–000 requesting Commission
authorization to change the crossing method for
specific wetlands and waterbodies to be crossed by
the Mountain Valley Pipeline Project from open-cut
crossings to one of several trenchless methods).
Nothing in this order prejudges action on the
amendment application.
31 INGAA Rehearing at 15–16 (noting that the
term ‘‘facilities’’ refers to the physical plant
approved by the Commission in the original
certificate order); Mountain Valley Rehearing at 5.
32 INGAA Rehearing at 18–20.
33 Order No. 871–B, 175 FERC ¶ 61,098 at P 17.
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initial authorizing order that remain
unchanged by the amendment order.34
17. The Commission has already
provided substantial guidance in
response to INGAA’s previous requests
for clarification regarding the rule’s
application to non-initial and
amendment orders. The scenario now
posed by INGAA and Mountain Valley
on rehearing of Order No. 871–B is a
slightly different factual scenario. But
the Commission is not required to
identify and address every conceivable
permutation of facts under which
questions about the rule’s application
may arise.35 Therefore, it is premature to
address the possible range of future
mid-construction changes. As a general
matter, we think it likely that the rule
would not apply if rehearing is sought
of an amendment order approving a
mid-construction change that is
generally consistent with the terms and
conditions of the original authorization
order and does not involve new
facilities or new landowners. However,
we will consider the circumstances of
each request on a case-by-case basis,
and will indicate in the Commission’s
order in each case whether the rule
applies.
3. Post-Allegheny Rehearing Treatment
18. Enbridge contends that the
Commission erred by determining that
an order granting rehearing for further
proceedings would vacate the certificate
authorization,36 arguing that the
Commission cannot revoke certificate
authority merely by issuing an
interlocutory order granting rehearing or
establishing a hearing, briefing
schedule, investigation or other similar
proceeding, but rather, must make a
specific finding on the issues with the
requisite support.37 According to
Enbridge, an interlocutory order
revoking a certificate would improperly
place the certificate holder in ‘‘legal
limbo’’ as an aggrieved party unable to
seek rehearing and appeal of the
interlocutory action.38 Enbridge urges
the Commission to establish a specific
timeframe for issuance of a substantive
order following a grant of rehearing
subject to further proceedings or to set
34 Id.
P 18.
e.g., Motor Vehicle Mfrs. Ass’n of U.S., Inc.
v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29, 51
(1983) (‘‘It is true that a rulemaking ‘cannot be
found wanting simply because the agency failed to
include every alternative device and thought
conceivable by the mind of man . . . regardless of
how uncommon or unknown that alternative may
have been[.]’’) (quoting Vt. Yankee Nuclear Power
Corp. v. Nat. Res. Def. Council, Inc., 435 U.S. 519,
551 (1978)).
36 Enbridge Rehearing at 9–10.
37 Id. at 9.
38 Id. at 10.
35 See,
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a deadline after which a construction
authorization may issue.39
19. INGAA takes a different tack,
suggesting that the Commission adopt a
case-by-case approach to determining
whether an initial order will be vacated
when rehearing is granted.40
Specifically, INGAA asks the
Commission to clarify that it did not
adopt a blanket rule that a grant of
rehearing for further procedures means
the entire underlying order is vacated,41
that it will instead employ a case-bycase approach for determining whether
grant of rehearing would result in
vacatur,42 and that the entire certificate
authorization will not be vacated if the
Commission seeks additional briefing or
information on one or more targeted
issues.43
20. Both INGAA and Enbridge note
that the Commission’s prior practice of
issuing tolling orders did not result in
vacatur of underlying order.44 Thus,
despite changing its procedures for
handling requests for rehearing
following Allegheny, INGAA and
Enbridge argue that the Commission has
departed from longstanding practice and
failed to acknowledge such departure.45
21. In response to INGAA’s request,
Order No. 871–B posited four postAllegheny scenarios that could arise
following the filing of a request for
rehearing to explain when such a
request would remain pending before
the Commission and, thus, preclude the
issuance of a construction
authorization.46 The fourth scenario
addressed a situation contemplated by
the Allegheny court, where the
Commission could ‘‘grant rehearing for
the express purpose of revisiting and
substantively reconsidering a prior
decision,’’ where it ‘‘needed additional
time to allow for supplemental briefing
or further hearing processes.’’ 47 In
Order No. 871–B, the Commission
stated that ‘‘[u]nder those
circumstances, i.e., where the
Commission grants rehearing without
issuing a final order, the original
39 Id.
at 10–11.
Rehearing at 20–23.
41 See id. at 20–22.
42 Id. at 22.
43 Id.
44 See INGAA Rehearing at 23; Enbridge
Rehearing at 10.
45 See INGAA Rehearing at 23 (citing FCC v. Fox
Television Stations, Inc., 556 U.S. 502, 515 (2009)
(agencies must ‘‘provide reasoned explanation’’ and
show good reasons for a change in position, but
‘‘need not demonstrate to a court’s satisfaction that
the reasons for the new policy are better than the
reasons for the old one’’) (emphasis in the original));
Enbridge Rehearing at 10 (same).
46 See Order No. 871–B, 175 FERC ¶ 61,098 at PP
19–29.
47 Id. P 27 (citing 964 F.3d at 16).
40 INGAA
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authorization would no longer be in
effect and the provisions of Order No.
871 would no longer apply since there
would be no final order pursuant to
which a notice to proceed could be
issued.’’ 48
22. As an initial matter, Enbridge and
INGAA err to the extent that they
suggest the Commission determined that
original authorization orders necessarily
would be vacated or revoked by an
interlocutory order granting rehearing
for further procedures, as described by
the Allegheny court. We merely stated,
in response to a prior request for
clarification from INGAA, that under
the specified circumstances
contemplated by the Allegheny court,
the provisions of Order No. 871 ‘‘would
no longer apply since there would be no
final order pursuant to which a notice
to proceed could be issued.’’ 49 We agree
with INGAA that a case-by-case
approach is necessary for the
Commission to determine the effect that
a grant of rehearing for further
procedures would have on the
underlying authorization. In the order
granting rehearing for further
procedures, we will indicate the order’s
effect on the underlying authorization.
23. The Commission previously
declined a request to establish a
deadline for issuing a final merits order
following a grant of rehearing for further
procedures.50 As we stated at the time,
timelines associated with supplemental
briefing or evidentiary submissions may
vary based on the complexity of the
issues warranting further procedures.51
Thus, we continue to find that a caseby-case approach is warranted in the
event that the Commission grants
rehearing because it ‘‘need[s] additional
time to allow for supplemental briefing
or further hearing processes.’’ 52
4. Additional Clarifications to
Regulation Text
24. INGAA argues that § 157.23(b)
should be revised to add the phrase ‘‘the
earliest of the time at which,’’ as
italicized below:
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If a timely request for rehearing raising issues
reflecting opposition to project construction,
operation, or need is filed, until the earliest
of the time at which: (1) The request is no
longer pending before the Commission, (2)
the record of the proceeding is filed with the
court of appeals, or (3) 90 days has passed
after the date that the request for rehearing
may be deemed to have been denied under
15 U.S.C. 717r(a).53
48 Id.
49 Id.
50 Id.
P 28.
51 Id.
52 Allegheny,
964 F.3d at 16.
53 INGAA Rehearing at 24.
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INGAA contends that this addition
would clarify and better reflect what it
understands to be the Commission’s
intent, as reflected by the Commission’s
use of the conjunction ‘‘or’’ and
references throughout Order No. 871–B
that suggest that the restriction on
issuance of construction authorizations
will apply until the earliest of the three
‘‘triggering events’’ contemplated by the
rule.54 If the suggested change is not
adopted, INGAA fears that project
opponents may argue that no
authorization to proceed with
construction should be issued until the
occurrence of the later of the three
‘‘triggering events’’ comes to pass.55
25. INGAA is correct in its
interpretation that a construction
authorization may be issued upon the
earliest occurrence of the three
triggering events enumerated in the
regulation. However, we decline to
further revise the regulatory language.
As currently drafted, the rule uses the
conjunction ‘‘or’’ which serves to
distinguish the three scenarios as
alternatives and signals that a
construction authorization may issue
once the earliest of the three events
occurs.
26. In addition, INGAA renews its
request that the Commission revise
§ 157.23 to expressly state that the rule
may be waived for good cause shown.56
INGAA urges the Commission to
consider cases finding in other contexts
that agencies’ authority to waive their
own rules is not unlimited and that
agencies are bound by, and courts must
enforce, the unambiguous terms of
regulations.57
27. The Commission previously
declined to adopt INGAA’s suggestion
to incorporate into the rule an explicit
waiver provision, finding it retains
authority to waive its own regulations.58
INGAA raises no new arguments that
cause us to reconsider that decision.
54 Id.
at 24–25.
at 25.
56 Id. at 28–29.
57 Id. at 28 (citing Reuters Ltd. v. FCC, 781 F.2d
946, 950 (D.C. Cir. 1986) (finding that FCC failed
to follow its rules and regulations in resolving
dispute between competing applicants for
microwave radio station licenses); Erie Boulevard
Hydropower, LP v. FERC, 878 F.3d 258, 269 (D.C.
Cir. 2017) (stating that ‘‘an agency action fails to
comply with its regulations, that action may be set
aside as arbitrary and capricious’’ and that ‘‘[a]n
agency decision that departs from agency precedent
without explanation is similarly arbitrary and
capricious.’’) (citations omitted); Kisor v. Wilkie,
139 S. Ct. 2400, 2415 (2019) (explaining that when
there is ‘‘only one reasonable construction of a
regulation,’’ Auer deference is not appropriate and
a court must not defer to any other reading of the
regulation); 5 U.S.C. 706(2)).
58 Order No. 871–B, 175 FERC ¶ 61,098 at P 29.
55 Id.
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5. Effective Date of Construction
Authorization Issuances
28. Enbridge urges the Commission to
clarify that its staff may issue
authorizations to proceed with
construction prior to the deadline
established by the rule so long as the
authorization does not become effective
until the occurrence of the earliest of the
three triggering events enumerated in
the rule (i.e., the rehearing request is no
longer pending before the Commission,
the record of the proceeding is filed
with the court of appeals, or 90 days
after the date that the request may be
deemed denied).59 Allowing project
developers to obtain advance
confirmation from Commission staff that
all preconstruction conditions have
been satisfied would, according to
Enbridge, help project developers set
and meet construction milestones,
lessen the chance of additional
regulatory delays, and would reflect the
Commission’s articulated goal of
achieving an appropriate balance of
interests.60
29. The Commission denies the
requested clarification. We believe that,
in practice, a conditional construction
authorization of the nature Enbridge
suggests has the potential to create
uncertainty for project developers,
stakeholders, and Commission staff
alike as to the effective date of the
authorization, which outweighs the
purported benefits that Enbridge
identifies. Moreover, the advance notice
contemplated by Enbridge fails to
account for a change in status of a
project developer’s compliance with the
terms of its section 7 certificate or
section 3 authorization that could arise
in the interim. We believe that a cleaner
approach is for the Commission to issue
authorizations to proceed with
construction once all requisite
conditions have been satisfied and the
rule’s prohibition on such issuance has
elapsed.
6. Procedural Nature of Rule
30. INGAA urges the Commission to
reconsider its determination that Order
No. 871–B is a procedural rule not
subject to the Administrative Procedure
Act’s (APA) notice and comment
procedures.61 Where a project developer
has already fulfilled the necessary
prerequisites for beginning construction,
INGAA argues that the Commission
failed to explain how it has ‘‘unfettered
discretion’’ to refuse to allow
construction of facilities it has already
found required by the public
59 Enbridge
Rehearing at 11–12.
at 12.
61 See INGAA Rehearing at 25–28.
60 Id.
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convenience and necessity.62 INGAA
also characterizes as misleading the ‘‘85day’’ figure—cited in Order No. 871–B
to illustrate that over a five year period,
on average, 85 days elapsed between
issuance of an initial order and issuance
of an authorization to proceed with
construction—for it fails to account for
project differences and assumes that
developers rely on average figures when
planning project construction and inservice deadlines.63 According to
INGAA, the rule ‘‘dramatically changes’’
the timeline for when a project can be
placed in service and ‘‘implicate[s] the
investment-backed expectations of all
project developers.’’ 64
31. The Commission previously
responded to concerns that the rule
adopted in Order No. 871 was not a
procedural rule and thus should have
been issued following the APA’s notice
and comment requirements.65 As we
explained, the APA’s notice and
comment procedures were not required
because the rule neither substantially
‘‘alters the rights or interests’’ of
regulated natural gas companies nor
changes the agency’s substantive
outcomes.66 We also explained that the
timing of when to permit construction
to begin is a matter entirely within the
Commission’s existing discretion and
not a matter of right.67 INGAA’s
arguments on rehearing do not
demonstrate an error in the
Commission’s analysis.68
32. Order No. 871 is premised on the
Commission’s desire to balance its
commitment to expeditiously respond
to parties’ concerns in comprehensive
orders on rehearing and the serious
concerns posed by the possibility of
construction proceeding prior to the
completion of agency review.69 In Order
No. 871–B, we cited the average 85-day
span between an initial authorizing
order and issuance of a construction
62 Id.
at 26.
id. at 26–27; Order No. 871–B, 175 FERC
¶ 61,098 at P 37.
64 INGAA Rehearing at 27.
65 See Order No. 871–B, 175 FERC ¶ 61,098 at PP
35–39.
66 Id. at P 35 (citing See Am. Hosp. Ass’n v.
Bowen, 834 F.2d 1037, 1047 (D.C. Cir. 1987)).
67 Id. (explaining that nothing in the NGA or the
Commission’s regulations, other than the rule
adopted in Order No. 871, addresses the timing of
authorizations to commence construction or
prevents the Commission from acting on rehearing
prior to issuing an authorization to proceed with
construction).
68 See, e.g., Batterton v. Marshall, 648 F.2d 694,
707 (D.C. Cir. 1980) (‘‘A useful articulation of the
[rule of agency organization, procedure, or practice]
exemption’s critical feature is that it covers agency
actions that do not themselves alter the rights or
interests of parties, although it may alter the
manner in which the parties present themselves or
their viewpoints to the agency.’’).
69 Order No. 871, 171 FERC ¶ 61,201 at P 11.
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63 See
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authorization only to illustrate that in
many cases construction cannot begin
immediately upon issuance of an order
authorizing new facilities under NGA
sections 3 or 7.70
B. Policy of Presumptively Staying
Section 7(c) Certificate Orders
33. In Order No. 871–B, the
Commission announced a new policy of
presumptively staying an NGA section
7(c) certificate order during the 30-day
period for seeking rehearing and
pending Commission resolution of any
timely requests for rehearing filed by a
landowner, until the earlier of the date
on which the Commission (1) issues a
substantive order on rehearing or
otherwise indicates that the
Commission will not take further action,
or (2) 90 days following the date that a
request for rehearing may be deemed to
have been denied under NGA section
19(a). We explained that this policy will
not apply where the pipeline developer
has, at the time of the certificate order,
already acquired all necessary property
interests or where no landowner
protested the section 7 application. In
addition, we explained that the stay will
automatically lift following the close of
the 30-day period for seeking rehearing
if no landowner files a timely request
for rehearing of the certificate order. As
we explained, this policy balances the
competing interests at stake, including
the project developer’s interest in
proceeding with construction when it
has obtained all necessary permits, and
a project opponent’s interest in being
able to challenge the Commission’s
ultimate decision in a timely manner.
1. Policy Does Not Violate NGA or APA
34. INGAA and Enbridge argue that
the stay policy is unlawful, under the
NGA and the APA, because it seeks to
achieve an objective—conditioning a
certificate holder’s eminent domain
authority—that is directly prohibited by
statute through indirect means.71
INGAA and Enbridge contend that
because the Commission has no
authority to deny or restrict certificate
holders from exercising the power of
eminent domain, the Commission’s new
policy of presumptively staying its
section 7 certificate orders is an
unlawful workaround of a statutory
prohibition and improperly limits a
certificate holder’s statutorily conferred
eminent domain authority.72
70 See
Order No. 871–B, 175 FERC ¶ 61,098 at P
37.
71 INGAA Rehearing at 29–31; Enbridge
Rehearing at 19–21.
72 See INGAA Rehearing at 29–30 (citing Civil
Aeronautics Bd. v. Delta Air Lines, Inc., 367 U.S.
316, 328 (1961); Cont’l Air Lines, Inc. v. CAB, 522
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35. INGAA and Enbridge further
contend that the stay policy violates
section 19(c) of the NGA, which states
that the filing of a rehearing request
‘‘shall not, unless specifically ordered
by the Commission, operate as a stay of
the Commission’s order.’’ 73 INGAA
maintains that the Commission, by
announcing in Order No. 871–B a
general policy of presumptively staying
certificate orders pending rehearing,
acted in general, rather than with the
specificity that NGA section 19(c)
demands.74 INGAA further asserts that
the policy is unlawful because it will
result in the Commission staying its
orders before either a rehearing request
has been filed or a stay has been sought,
an outcome not contemplated by the
NGA.75 Finally, INGAA takes issue with
the Commission’s position that its
authority to stay a certificate order is
found in the APA, arguing that section
705 of that act authorizes the
Commission to postpone the effective
date of its actions only ‘‘pending
judicial review,’’ and that this authority
is inapplicable prior to the filing of a
request for rehearing and while such
request is pending before the
Commission.76
36. As explained in Order No. 871–B,
NGA section 16 gives the Commission
an independent basis for granting stays
of a certificate order.77 Specifically,
section 16 provides that ‘‘[t]he
Commission shall have the power to
perform any and all acts, and to
prescribe, issue, make, amend, and
rescind such orders, rules, and
regulations as it may find necessary or
appropriate to carry out the provisions
F.2d 107, 115 (D.C. Cir. 1974)); Enbridge Rehearing
at 19–21.
73 INGAA Rehearing at 31 (quoting 15 U.S.C.
717r(c)); see Enbridge Rehearing at 16–19.
74 INGAA Rehearing at 31. INGAA notes that the
word specific means ‘‘[o]f, relating to, or
designating a particular . . . thing’’ and that if the
Commission wants to grant a stay, it must do so
based on the particular facts of a particular case. Id.
at 32.
75 Id.
76 Id. at 33 (citing 5 U.S.C. 705).
77 15 U.S.C. 717o; see Pub. Util. Dist. No. 1 of
Okanogan Cty., Wash., 162 FERC ¶ 61,040, at P 13
(2018) (Okanogan PUD) (addressing analogous
provision of the Federal Power Act (FPA)) (citing
16 U.S.C. 825h; Kings River Conservation Dist., 30
FERC ¶ 61,151, at 61,320 (1985) (‘‘The
Commission’s authority to issue a stay of a license
order is derived primarily from Section 309 of the
[FPA]’’); Keating v. FERC, 569 F.3d 427, 429 (D.C.
Cir. 2009) (noting that FERC has stayed the
commencement of construction deadline pursuant
to section 309 of the FPA)). The courts have held
that the NGA and FPA should be interpreted
consistently. See Env’tl Action v. FERC, 996 F.2d
401, 410 (D.C. Cir. 1993); Tenn. Gas Pipeline Co.
v. FERC, 860 F.2d 446, 454 (D.C. Cir. 1988); see also
Ark. La. Gas Co. v. Hall, 453 U.S. 571, 577 n.7
(1981).
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of this [Act].’’ 78 Section 16 also
mandates that Commission orders ‘‘shall
be effective on the date and in the
manner which the Commission shall
prescribe.’’ 79 Thus, the NGA provides
the Commission with broad authority to
take actions necessary to carry out the
act, and we find that, given the
significant consequences that eminent
domain has for landowners, issuance of
a stay of a certificate order under certain
narrowly prescribed circumstances is
well within this authority. Because NGA
section 16 is broadly applicable, the
Commission utilizes the standard set
forth in APA section 705 to determine
whether a stay is justified.80 But the
Commission’s underlying authority
derives from NGA section 16.
37. In any event, we disagree with
INGAA’s argument that APA section
705, which authorizes an agency to
postpone the effective date of its actions
‘‘pending judicial review,’’ 81 means that
a stay issued pursuant to this authority
must be connected to ongoing judicial
review proceedings and is thus
inapplicable to any proceedings before
the Commission that precede judicial
review (e.g., the time for filing and
considering requests for rehearing).82
INGAA construes the statute too
narrowly. The clause ‘‘pending judicial
review’’ in section 705 could reasonably
be construed as ‘‘in anticipation of’’ in
which case all that is required is that the
Commission reasonably anticipate—
because rehearing has been sought or a
78 15
U.S.C. 717o.
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79 Id.
80 Under the APA, an agency may issue a stay of
its order where the ‘‘agency finds that justice so
requires.’’ 5 U.S.C. 705. In determining whether this
standard has been met, we consider several factors,
including: (1) Whether a stay is necessary to
prevent irreparable injury; (2) whether issuing a
stay may substantially harm other parties; and (3)
whether a stay is in the public interest. See, e.g.,
Millennium Pipeline Co., L.L.C., 141 FERC ¶ 61,022,
at P 13 (2012); Ruby Pipeline, L.L.C., 134 FERC
¶ 61,103, at P 17 (2011). But see Okanogan PUD,
162 FERC ¶ 61,040 at P 13, n.21 (explaining, in the
hydroelectric licensing context, that ‘‘[p]reviously,
the Commission has applied different standards
than the one set forth in section 705 of the APA.’’)
(citing Monongahela Power Co., 7 FERC ¶ 61,054
(1979) (‘‘we considered [the motions for stay] under
the standards of Virginia Jobbers Association v.
FPC, 259 F.2d 291 (D.C. Cir. 1958) and Washington
Metropolitan Area Transit Commission v. Holiday
Tours, Inc., 559 F.2d 841 (D.C. Cir. 1977)’’);
Nantahala Power & Light Co., 20 FERC ¶ 61,026
(1982) (‘‘finding that a stay pending rehearing is in
the ‘public interest’ ’’); Kings River Conservation
Dist., 27 FERC ¶ 61,098 (1984) (‘‘[i]t is appropriate
and in the public interest to stay the license issued
in Project No. 2890 until completion of judicial
review.’’)).
81 5 U.S.C. 705.
82 See INGAA Rehearing at 33. Indeed, a request
for rehearing does not simply precede, but is a
mandatory prerequisite to, judicial review. 15
U.S.C. 717r(b).
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proposal has been strongly protested—
that a party will seek judicial review.
38. Further, in Order No. 871–B, the
Commission announced only a general
policy with respect to stays.83
Accordingly, although contained in a
final rule, the Commission’s discussion
of that general policy did nothing more
than explain how the Commission
intends to approach a particular set of
questions in the future without
conclusively resolving those questions
or otherwise fixing any rights or
responsibilities.84 Indeed, as explained
in Order No. 871–B, the Commission
intends to make a particularized
application of the policy in individual
certificate orders and parties to those
individual proceedings will have the
opportunity to challenge the
Commission’s determination on
whether to issue a stay in those
proceedings. Notably, the Commission
has issued five certificate orders since
adopting the policy reflected in Order
No. 871–B, with none of those orders
containing a stay along the lines
contemplated in Order No. 871–B.85
83 General statements of policy are not be subject
to pre-enforcement judicial review. Nat’l Min. Ass’n
v. McCarthy, 758 F.3d 243, 251 (D.C. Cir. 2014)
(citing Nat’l Park Hosp. Ass’n v. Dep’t of Interior,
538 U.S. 803, 809–11 (2003)).
84 See, e.g., INGAA v. FERC, 285 F.3d 18, 59–61
(D.C. Cir. 2002) (finding Commission’s discussion
of seasonal rates within a final rule ‘‘represents only
a policy statement and therefore is neither binding
on any party nor ripe for judicial review’’); Am. Gas
Ass’n v. FERC, 888 F.2d 136, 151–52 (D.C. Cir.
1989) (finding challenges to substantive aspects of
Commission’s cost recovery policy statement not
ripe for review); Pac. Gas & Elec. Co. v. FPC, 506
F.2d 33, 35 (D.C. Cir. 1974) (finding Order No. 467,
a policy proposal on delivery priorities by natural
gas companies during curtailment periods, to be a
general statement of policy that was not reviewable
under NGA section 19(b) because it lacked
‘‘sufficiently immediate and significant impact
upon petitioners’’). That is consistent with the
Commission’s long-standing approach of
articulating its policies with respect to NGA section
7 certificate applications, while leaving all actual
findings and determinations for future proceedings.
See, e.g., Certification of New Interstate Natural Gas
Pipeline Facilities, 88 FERC ¶ 61,227, corrected, 89
FERC ¶ 61,040 (1999), clarified, 90 FERC ¶ 61,128,
further clarified, 92 FERC ¶ 61,094, at 61,375 (2000)
(explaining that the purpose of the Certificate
Policy Statement is ‘‘to provide the natural gas
industry with guidance by stating the analytical
framework the Commission will use to evaluate
proposals for certificating new construction’’ and
that ‘‘generally objections to such a statement are
not directly reviewable. Rather, such review must
await implementation of the policy in a specific
case.’’). In line with that interpretation, the
discussion in Order No. 871–B regarding how the
Commission will approach those future cases was
not accompanied by any revisions to the
Commission’s rules or regulations.
85 See Tuscarora Gas Transmission Co., 175 FERC
¶ 61,147 (2021); N. Natural Gas Co., 175 FERC
¶ 61,146 (2021); Enable Gas Transmission, LLC, 175
FERC ¶ 61,183 (2021); WBI Energy Transmission,
Inc., 175 FERC ¶ 61,182 (2021); N. Natural Gas Co.,
175 FERC ¶ 61,238 (2021). There were no
landowner protests in any of these cases.
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39. Contrary to INGAA’s and
Enbridge’s assertions, nothing in NGA
section 19(c), which on its face
contemplates that the Commission may
stay its own orders, precludes the
Commission from determining that a
stay of an individual certificate order
during the 30-day period for seeking
rehearing. Section 19(c) provides that a
request for rehearing does not
automatically stay a Commission
order.86 That section does not speak to,
or otherwise limit, the Commission’s
authority to issue a stay of its own
accord. As described above, NGA
section 16 provides the Commission
with broad authority to issue a stay
where warranted by the facts and
circumstances in a particular
proceeding.
2. Qualifying Landowner Rehearing
Requests
40. Enbridge seeks clarification that,
for the purpose of the policy, the term
‘‘landowner’’ means ‘‘directly affected’’
landowner, as defined by the
Commission’s regulations, or, in the
alternative, rehearing.87 This
clarification, Enbridge maintains, would
align with the Commission’s
justification for the policy as it would
ensure that a stay is applied only when
a ‘‘protest or request for rehearing is
submitted by the owner of property that
would be subject to an eminent domain
proceeding (i.e., to directly affected
landowners), and not owners of
property that merely abuts the
construction right-of-way or falls within
a certain radius of compressor station
construction or storage facilities.’’ 88
41. As a general matter, we agree with
Enbridge’s suggestion that the policy is
intended to protect those whose
property would be crossed or used by
the proposed pipeline project as these
are the landowners whose property
rights could be acquired by the eminent
domain authority that NGA section 7(h)
confers upon certificate holders.89
Should the issue of a landowner’s
specific property interests arise in a
86 See 15 U.S.C. 717r(c) (‘‘The filing of an
application for rehearing . . . shall not, unless
specifically ordered by the Commission, operate as
a stay of the Commission’s order.’’).
87 Enbridge Rehearing at 14–16 (citing 18 CFR
157.6(d)(2)(i) (2020)).
88 Id. at 15 (citing 18 CFR 157.6(d)(2)(i)).
89 See 15 U.S.C 717f(h) (authorizing certificate
holders to acquire by eminent domain ‘‘the
necessary right-of-way to construct, operate, and
maintain a pipe line or pipe lines for the
transportation of natural gas, and the necessary land
or other property, in addition to right-of-way, for
the location of compressor stations, pressure
apparatus, or other stations or equipment necessary
to the proper operation of such pipe line or pipe
lines’’); see also 18 CFR 157.6(d)(2)(i) (defining
directly affected landowners).
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proceeding, the Commission will
consider it.
3. Commitment To Refrain From
Exercise of Eminent Domain
42. Enbridge seeks clarification that
the Commission will promptly lift a stay
following a certificate holder’s
commitment that it will not exercise its
right of eminent domain ‘‘for any reason
other than to obtain the access necessary
to complete surveys’’ while a qualifying
landowner rehearing request is
pending,90 or, in the alternative,
rehearing.
43. In Order No. 871–B, the
Commission explained that a developer
may file a motion seeking ‘‘to preclude,
or lift, a stay based on a showing of
significant hardship,’’ and expressly
stated ‘‘that a commitment by the
pipeline developer not to begin eminent
domain proceedings until the
Commission issues a final order on any
landowner rehearing requests will
weigh in favor of granting such a
motion.’’ 91 We reiterate that conclusion,
but will not pre-judge the merits of any
motion along the lines contemplated in
Order No. 871–B. As with the other
aspects of this policy, those
determinations will be made in any
future proceeding.
4. Claims of Burden Shifting
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44. INGAA argues that the
Commission unlawfully shifted to
pipeline developers the burden of proof
to show that a stay is not warranted and
argues that such a change in policy can
only be accomplished through notice
and comment rulemaking.92 INGAA
contends that the Commission failed to
provide justification for its departure
from past practice and failed to explain
why it is permissible to shift this
burden.93 Enbridge makes a similar
argument, but takes it a step further
arguing that the Commission failed to
‘‘assess whether there were reliance
interests, determine whether they were
significant, and weigh any such
interests against competing policy
concerns.’’ 94 INGAA requests further
clarification regarding how the
Commission will determine when a stay
should be issued and how specifically a
developer can overcome the
presumption that a stay will be
granted.95
45. In Order No. 871–B, the
Commission acknowledged that the stay
90 Enbridge
Rehearing at 21–23.
91 Order No. 871–B, 175 FERC ¶ 61,098 at P 51.
92 See INGAA Rehearing at 33–35.
93 Id. at 33–34.
94 Enbridge Rehearing at 18–19.
95 INGAA Rehearing at 34–35.
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policy is a departure from past practice
and explained its belief that ‘‘this new
policy better balances the relevant
considerations—such as fairness, due
process, and developer certainty—
thereby justifying the change in
policy.’’ 96 We disagree with the
petitioners that this policy improperly
shifts the burden to pipeline developers.
As we previously explained, the
Commission will determine whether to
impose a stay based on the
circumstances presented in each
particular certificate proceeding—the
burden is not on the pipeline. Rather,
the Commission is obligated to ensure
that all of its decisions, including
whether to impose a stay in individual
certificate proceedings, are supported by
the record and reasonably explained.97
And parties to those individual
proceedings will have the opportunity
to provide input to and challenge the
Commission’s decision to issue a stay,
or not, in those proceedings.
46. We further disagree with INGAA’s
assertion that public notice and
comment was required prior to the
Commission announcing the stay
policy. General statements of policy,
such as the one announced in Order No.
871–B, are exempted from the APA’s
notice and comment procedures.98
5. Consideration of Industry Concerns
47. INGAA contends that the
Commission both failed to sufficiently
appreciate the harm that will befall the
natural gas industry and to explain what
activities certificate holders can perform
while a stay is in place.99 INGAA points
to the length of this proceeding to cast
doubt on the Commission’s statement
that it has increased the speed with
which it resolves rehearing requests.100
It also seeks further clarity regarding the
types of activities that certificate holders
may undertake while a stay is in place.
48. The Commission fully considered
industry concerns and ultimately
concluded that the stay policy
announced in Order No. 871–B struck
an appropriate balance between the
interests of pipeline developers and
landowners.101 The rehearing process in
this rulemaking proceeding, involving
generally applicable policy
considerations, is not representative of
the increased speed with which the
Commission handles project-specific
rehearing requests in the post-Allegheny
96 Order No. 871–B, 175 FERC ¶ 61,098 at P 49,
n.101.
97 See 15 U.S.C. 717r(b); 5 U.S.C. 706.
98 5 U.S.C. 553(b)(A).
99 See INGAA Rehearing at 35–39.
100 Id. at 36.
101 See Order No. 871–B, 175 FERC ¶ 61,098 at PP
48–51.
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era. In fact, the Commission continues
to strive to act on landowner rehearing
requests (the subset of rehearing
requests that may result in a stay
extending beyond the 30-day period for
seeking rehearing) within 30 days. The
petitioners do not cite an instance of a
delay in the Commission’s issuance of
an order on rehearing of a certificate
order. While a stay is intact, certificate
holders can engage only in those
development activities that they were
free to undertake prior to receiving a
certificate order, such as negotiating
easement agreements with landowners
and conducting environmental surveys
on private property they have
permission to access.
6. Landowner Ability To Seek Judicial
Stay
49. Finally, INGAA asserts that the
Commission failed to explain why the
policy is necessary in light of an
aggrieved party’s ability to seek a stay
from a reviewing court after a request
for rehearing is deemed denied.102
50. As the Commission explained in
Order No. 871–B, certificate holders
can, and routinely do, initiate
condemnation proceedings immediately
upon receipt of a certificate order.103
Absent a stay in a particular proceeding,
certificate holders have the ability to
initiate condemnation actions against
landowners prior to the expiration of
the 30-day period for seeking rehearing,
and prior to the 30-day period for the
Commission to act on such a request
before it may be deemed denied. This
leaves a gap of approximately 60 days
preceding a deemed denial and during
which time landowners could be
susceptible to condemnation
proceedings being initiated prior to a
reviewing court obtaining concurrent
jurisdiction following the filing of a
petition for review.104 As we explained
at length in Order No. 871–B, this
Commission finds the fundamental
unfairness that could result from that
outcome untenable. Further, the stay
policy is an appropriate exercise of our
authority, and there is no need to leave
these matters solely to the courts.
C. Commission Determination
51. In response to INGAA’s,
Enbridge’s, and Mountain Valley’s
requests for rehearing, Order No. 871–B
is hereby modified and the result
102 INGAA
Rehearing at 39.
e.g., Allegheny, 964 F.3d at 6.
104 See, e.g., Envtl. Def. Fund v. FERC, No. 20–
1016, et al., 2021 WL 2546672, at *8, *15 (D.C. Cir.
June 22, 2021) (citing to relevant pipeline’s use of
eminent domain in support of court’s decision to
vacate certificate order).
103 See,
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Federal Register / Vol. 86, No. 149 / Friday, August 6, 2021 / Rules and Regulations
sustained, as discussed in the body of
this order.
III. Document Availability
52. 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 the
Commission’s Home Page (https://
www.ferc.gov). At this time, the
Commission has suspended access to
the Commission’s Public Reference
Room due to the President’s March 13,
2020 proclamation declaring a National
Emergency concerning the Novel
Coronavirus Disease (COVID–19).
53. From the Commission’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 in the docket number
field.
54. User assistance is available for
eLibrary and the Commission’s website
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. Email the
Public Reference Room at
public.referenceroom@ferc.gov.
IV. Dates
55. The effective date of the document
published on May 13, 2021 (86 FR
26,150), is confirmed: June 14, 2021.
By the Commission. Commissioner
Chatterjee is not participating. Commissioner
Danly is dissenting with a separate statement
attached.
Issued: August 2, 2021.
Debbie-Anne A. Reese,
Deputy Secretary.
DEPARTMENT OF ENERGY
write separately today to further explain
how the Commission’s new,
unnecessary, and unjustifiable
presumption to stay certificate orders
conflicts with the plain text of the
Natural Gas Act (NGA) and is beyond
the Commission’s authority.3 I also
write to explain how the majority’s
presumptive stay is not based on
reasoned decision making and therefore
runs afoul of the Administrative
Procedure Act (APA).
I. The Presumptive Stay Is Beyond the
Commission’s Authority and Contrary
to the Plain Text of the Natural Gas Act
2. In today’s order, the majority states
‘‘the Commission’s underlying authority
derives from NGA section 16.’’ 4
Specifically, the majority relies on the
provisions providing the Commission
authority ‘‘to perform any and all acts
. . . necessary or appropriate to carry
out the provisions of this [Act]’’ and to
determine the effective date of its
orders.5 Like many before it, the
majority has turned to NGA section 16
when all else has failed, placing more
weight upon this section than it can
reasonably bear. NGA section 16 ‘‘do[es]
not confer independent authority to
act.’’ 6 It is ‘‘of an implementary rather
than substantive character’’ and ‘‘can
only be implemented ‘consistently with
the provisions and purposes of the
legislation.7’ ’’ The majority, however,
fails to confront this limitation on
section 16’s reach and employs this
provision in a manner that contravenes
the NGA in three respects.
3. First, the majority’s policy denies
pipelines holding certificates the ability
to exercise eminent domain for up to
150 days—doing exactly what the
majority explicitly concedes it cannot
do: ‘‘restrict the power of eminent
domain in a section 7 certificate.’’ 8
NGA section 7(h) authorizes ‘‘any
holder of a certificate’’ to exercise
eminent domain authority.9 Other than
the issuance of a certificate, Congress
ordained no other condition be met in
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Federal Energy Regulatory Commission
Limiting Authorizations To Proceed
With Construction Activities Pending
Rehearing
DANLY, Commissioner, dissenting:
1. I dissent in full from today’s order
affirming the majority’s modification
and expansion of Order No. 871.1 As I
stated in my dissent in Order No. 871–
B, I would repeal the rule as it is no
longer required by law or prudence.2 I
1 See Limiting Authorizations to Proceed with
Construction Activities Pending Rehearing, 176
FERC ¶ 61,062 (2021) (Order No. 871–C).
2 See Limiting Authorizations to Proceed with
Construction Activities Pending Rehearing, 175
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FERC ¶ 61,098 (2021) (Danly, Comm’r, dissenting at
P 2) (Order No. 871–B).
3 See id. (Danly, Comm’r, dissenting at PP 3, 6–
14).
4 Order No. 871–C, 176 FERC ¶ 61,062 at P 36.
5 Id. (quoting 15 U.S.C. 717o).
6 New England Power Co. v. Fed. Power Comm’n,
467 F.2d 425, 431 (D.C. Cir. 1972), aff’d, 415 U.S.
345 (1974).
7 Id. at 430 (citation omitted).
8 Order No. 871–B, 175 FERC ¶ 61,098 at P 45
(citation omitted). Indeed, Order No. 871–B quotes
the Berkley v. Mountain Valley Pipeline, LLC, as
stating, ‘‘FERC does not have discretion to withhold
eminent domain once it grants a Certificate.’’ Id. P
45 n.86 (quoting Berkley v. Mountain Valley
Pipeline, LLC, 896 F.3d 624, 628 (4th Cir. 2018))
(emphasis added).
9 15 U.S.C. 717f(h) (emphasis added).
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43085
advance of a pipeline pursuing eminent
domain. The Commission can only
employ NGA section 16 in a manner
consistent with the other provisions of
the act. Here, the use of section 16 is in
direct in conflict with the statute—and
the majority does not see fit to argue
otherwise.
4. Second, presumptively staying a
pipeline’s ability to pursue eminent
domain is not appropriate under section
16 because such a delay is not a
‘‘necessary or appropriate’’ adjunct to
the Commission’s effectuation of its
responsibilities under section 7 of the
NGA. That section requires the
Commission to issue certificates to
applicants whose proposed natural gas
facilities are found to be in the public
convenience and necessity. The timing
of a pipeline’s use of eminent domain
does not weigh into the Commission’s
determination of whether proposed
pipeline facilities are in the public
convenience and necessity. If it did, the
majority would rely on the
Commission’s authority under NGA
section 7(e) to ‘‘attach to the issuance of
the certificate . . . such reasonable
terms and conditions as the public
convenience and necessity may
require.’’ 10 The majority, however, does
not.11 Nor does the majority cite any
other provision of the NGA for which
the Commission’s action would be
‘‘necessary or appropriate’’ under
section 16.
5. Third, the only reasonable reading
of NGA section 7 leads to the
conclusion that Congress intended for
certificates to be effective upon issuance
and acceptance, and for the right to
exercise eminent domain to attach
thereupon. NGA section 7(e) provides,
‘‘a certificate shall be issued’’ so long as
the applicant is ‘‘able and willing
properly to do the acts . . . .’’ 12
Further, NGA section 7(h) authorizes
‘‘any holder of a certificate of public
convenience and necessity’’ to acquire
by eminent domain the land necessary
for the construction, operation, and
maintenance of its pipeline facilities.13
Black’s Law Dictionary defines ‘‘holder’’
as ‘‘[a] person with legal possession of
a document of title or an investment
security,’’ meaning that the title was
issued and accepted by that person.14
This view has been shared by the
10 15
U.S.C. 717f(e).
Order No. 871–B, 175 FERC ¶ 61,098 at P
45 (‘‘In other words, the Commission lacks the
authority to deny or restrict the power of eminent
domain in a section 7 certificate.’’) (citation
omitted).
12 15 U.S.C. 717f(e) (emphasis added).
13 Id. § 717f(h) (emphasis added).
14 Holder, Black’s Law Dictionary (11th ed. 2019).
11 See
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courts 15 and the Commission.16 This is
not to say that the Commission can
never make a certificate effective after
its issuance or stay a certificate order.
Both may be warranted in certain
instances. In my view, however, it is
contrary to the purpose of the NGA to
adopt a policy that presumptively stays
certificates for the avowed purpose of
delaying a pipeline’s Congressionallyauthorized entitlement to exercise
eminent domain.17
6. In addition to NGA section 16, the
majority appears to place some reliance
on APA section 705, which provides
‘‘[w]hen an agency finds that justice so
requires, it may postpone the effective
date of action taken by it, pending
judicial review.’’ 18 I presume this is the
case because the majority responds to
arguments raised by the Interstate
Natural Gas Association of America
(INGAA) that the phrase ‘‘pending
judicial review’’ in APA section 705
means an agency stay must be ‘‘tied to
litigation.’’ 19 The majority asserts that a
more reasonable interpretation of the
phrase ‘‘pending judicial review’’ is ‘‘in
anticipation of [judicial review].’’ 20 I’ve
found no court that supports that
position and multiple courts, in fact,
disagree.21
15 See Maritimes & Ne. Pipeline, L.L.C. v.
Decoulos, 146 F. App’x 495, 498 (1st Cir. 2005)
(‘‘Once a CPCN is issued by the FERC, and the gas
company is unable to acquire the needed land by
contract or agreement with the owner, the only
issue before the district court in the ensuing
eminent domain proceeding is the amount to be
paid to the property owner as just compensation for
the taking.’’) (emphasis added); E. Tenn. Nat. Gas
Co. v. Sage, 361 F.3d 808, 818 (4th Cir. 2004)
(‘‘Once FERC has issued a certificate, the NGA
empowers the certificate holder to exercise ‘the
right of eminent domain’ over any lands needed for
the project.’’) (emphasis added); Bohon v. FERC,
No. 20–6 (JEB), slip op. at 2 (D.D.C. May 6, 2020)
(‘‘FERC’s issuance of a certificate, moreover,
conveys the power of eminent domain to its
holder.’’) (emphasis added); Paul H. Stitt & Loretta
Stitt, 39 F.P.C. 323, 324 (1968) (‘‘While the
condemnation powers granted to certificate holders
by Section 7(h) of the Natural Gas Act operate
prospectively from the date of issuance of a
certificate . . . .’’) (emphasis added).
16 See 18 CFR 157.20(a) (2020) (‘‘The certificate
shall be void and without force or effect unless
accepted in writing by applicant . . . .’’).
17 This is and separate apart from the argument
that I raised in my earlier dissent that NGA section
19(c), while allowing for stays, requires a specific
order by the Commission. Order No. 871–B, 175
FERC ¶ 61,098 (Danly, Comm’r, dissenting at PP 8–
10; see also 15 U.S.C. 717r(c) (‘‘The filing of an
application for rehearing under subsection (a) shall
not, unless specifically ordered by the Commission,
operate as a stay of the Commission’s order.’’).
Clearly, an automatically-applied presumption is
not a specific order and thus violates the
unambiguous terms of the statute.
18 5 U.S.C. 705.
19 Order No. 871–C, 176 FERC ¶ 61, 61,062 at P
37, n.82 (citing INGAA Rehearing at 33).
20 Id. P 37.
21 Nat. Res. Def. Council v. U.S. Dep’t of Energy,
362 F. Supp. 3d 126, 150 (S.D.N.Y. 2019) (‘‘A stay
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II. Presumptive Stay Is Not Based on
Reasoned Decision Making
7. To the extent the majority merely
argues that it can apply the three factors
of the equitable standard set forth in
APA section 705 to determine whether
a stay is warranted, I agree. However,
the majority’s application of the
equitable standard is not based on
reasoned decision making, and thus
violates the APA.22
8. As I stated in my dissent to Order
No. 871–B, the majority’s assumption
that the mere existence of a ‘‘landowner
protest’’ automatically means a stay is
required in the interest of justice is—at
best—questionable.23 This represents a
broad category of litigant, whose mere
participation in a proceeding would
temporarily extinguish a certificate
holder’s Congressionally-established
rights. Surely, the Commission should
at least impose rational limits on the
rule they are establishing. For example,
will the Commission stay a certificate
where there is a protest by a landowner
with property interests that abut the
proposed right-of-way but are not
subject to condemnation? And the
Commission’s policy applies to where
there is a ‘‘landowner protest.’’ Will the
Commission apply the stay where a
landowner protested but did not
intervene and thus cannot seek
rehearing or judicial review? What
about in the case where the landowner
joined a protest, but may not have active
interests in the proceeding?
9. The majority also fails to consider
the second factor ‘‘whether issuing a
stay may substantially harm other
parties.’’ Will the Commission stay a
is supposed to be grounded on ‘the existence or
consequences of the pending litigation.’ ’’); Bauer v.
DeVos, 325 F. Supp. 3d 74, 106 (D.D.C. 2018)
(‘‘Most significantly, the relevant equitable
considerations are not free-floating but, rather, must
be tied to the underlying litigation. Section 705
expressly provides that an agency may ’postpone
the effective date of [agency] action . . . pending
judicial review.’ ’’) (emphasis in original); Sierra
Club v. Jackson, 833 F. Supp. 2d 11, 34 (D.D.C.
2012) (‘‘Where, as in this case, [an agency] seeks to
justify a stay of its rules ‘pending judicial review,’
the agency must have articulated, at a minimum, a
rational connection between its stay and the
underlying litigation in the court of appeals.’’).
22 Motor Vehicle Mfrs. Ass’n of U.S., Inc. v. State
Farm Mut. Auto. Ins. Co., 463 U.S. 29, 30 (1983).
See also Elec. Consumers Res. Council v. FERC, 747
F.2d 1511, 1513–14 (D.C. Cir. 1984) (‘‘We defer to
the agency’s expertise . . . so long as its decision
is supported by ‘substantial evidence’ in the record
and reached by ‘reasoned decision-making,’
including an examination of the relevant data and
a reasoned explanation supported by a stated
connection between the facts found and the choice
made.’’) (citing Burlington Truck Lines v. United
States, 371 U.S. 156, 168 (1962); Memphis Light,
Gas & Water Div. v. FPC, 504 F.2d 225, 230 (D.C.
Cir. 1974); 16 U.S.C. 825l (1982)).
23 Order No. 871–B, 175 FERC ¶ 61,098 (Danly,
Comm’r, dissenting at P 8).
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certificate where the proposed project is
delivering natural gas to municipalities
that need the gas within six months of
certificate issuance? Will the
Commission stay a certificate if the
delay caused by its stay would cause an
additional year’s delay in construction
because of seasonal restrictions? To
what degree will the financial
consequences for the project proponent
be considered? What about the
consequences to the pipeline’s
customers? It is not inconceivable that
those projects whose applications have
been pending for more than a year
ultimately will be canceled as a result
of delay.24 How can the potential
cancellation of a project that has been
determined by the Commission to be in
the public interest itself be in the public
interest or, under the second factor, be
found not to ‘‘substantially harm other
parties’’?
III. Conclusion
10. The power of eminent domain is
surely profound and formidable. I
cannot fault my colleagues for the
anxiety they have expressed regarding
its wise and just exercise. However, the
Commission, as a mere ‘‘creature of
statute,’’ can only act pursuant to law by
which Congress has delegated its
authority.25 Congress conferred the right
to certificate holders to pursue eminent
domain in federal district court or state
court,26 having recognized that states
‘‘defeat[] the very objectives of the
Natural Gas Act’’ 27 by conditioning or
withholding the exercise of eminent
domain. Congress has made that
determination. It has codified it into
law. The Commission, as an executive
agency, is empowered only to
implement Congressional mandate, not
to second-guess Congressional wisdom
or attempt to do indirectly what it
cannot directly.28
11. Despite this, I doubt that the
Commission’s arguments will be
24 See id. (Danly, Comm’r, dissenting at P 14)
(noting Dominion Energy Transmission, Inc.
withdrew its application for a certificate for its
Sweden Valley Project that it had filed seventeen
months prior).
25 Atl. City Elec. Co. v. FERC, 295 F.3d 1, 8 (D.C.
Cir. 2002) (‘‘As a federal agency, FERC is a ’creature
of statute,’ having ‘no constitutional or common law
existence or authority, but only those authorities
conferred upon it by Congress.’’’) (quoting Michigan
v. EPA, 268 F.3d 1075, 1081 (D.C. Cir. 2001))
(emphasis in original); see Bowen v. Georgetown
Univ. Hosp., 488 U.S. 204, 208 (1988) (‘‘It is
axiomatic that an administrative agency’s power to
promulgate legislative regulations is limited to the
authority delegated by Congress.’’).
26 See 15 U.S.C. 717f(h).
27 S. Rep. No. 80–429, at 3 (1947).
28 Richmond Power & Light v. FERC, 574 F.2d
610, 620 (D.C. Cir. 1978) (‘‘What the Commission
is prohibited from doing directly it may not achieve
by indirection.’’).
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presented to the courts. It will be
challenging for those that are harmed by
the issuance of a generally-applicable
policy to show aggrievement before it is
actually applied in a case. And by the
time those harmed are able seek review,
the damage of the stay will have been
done and the stay will have been lifted.
My pessimistic outlook is that despite
this order’s obvious infirmities, the
Commission will avoid judicial scrutiny
and thereby thwart the intent of
Congress.
For these reasons, I respectfully
dissent.
lllllllllllllllllll
James P. Danly,
Commissioner.
[FR Doc. 2021–16812 Filed 8–5–21; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 100
[Docket No. USCG–2021–0162]
Special Local Regulations; Marine
Events Within the Fifth Coast Guard
District
Coast Guard, DHS.
Notice of enforcement of
regulation; change of enforcement date.
AGENCY:
ACTION:
The Coast Guard will enforce
the special local regulation for the 11th
Annual Atlantic City Triathlon on
August 7, 2021, from 6 a.m. through 9
a.m., to provide for the safety of life on
navigable waterways during this event.
Our regulation for marine events within
the Fifth Coast Guard District identifies
the regulated area for this event in
Atlantic City, NJ. During the
enforcement periods, the operator of any
vessel in the regulated area must
comply with directions from the Patrol
Commander or any Official Patrol
displaying a Coast Guard ensign.
DATES: The regulation in 33 CFR
100.501 for the special local regulation
listed in item (a)(12) in the table to
§ 100.501 will be enforced from 6 a.m.
through 9 a.m. on August 7, 2021.
FOR FURTHER INFORMATION CONTACT: If
you have questions about this notice of
enforcement, call or email Petty Officer
Jennifer Padilla, U.S. Coast Guard,
Sector Delaware Bay, Waterways
Management Division, telephone 215–
271–4814, email Jennifer.L.Padilla@
uscg.mil.
SUPPLEMENTARY INFORMATION: The Coast
Guard will enforce the special local
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SUMMARY:
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regulation as described in section (a),
row (12) of the table to 33 CFR 100.501
for the 11th Annual Atlantic City
Triathlon from 6 a.m. through 9 a.m. on
August 7, 2021. The published
enforcement periods for this event
included the 2nd or 3rd Sunday in
August. We are announcing a change of
enforcement date for this year’s event
with this notice of enforcement because
August 7, 2021, is the first Saturday in
August. This action is necessary to
ensure safety of life on the navigable
waters of the United States immediately
prior to, during, and immediately after
the swim portion of the triathlon. Our
regulation for marine events within the
Fifth Coast Guard District, table to
§ 100.501, section (a), row (12), specifies
the location of the regulated area as all
waters of the New Jersey ICW bounded
by a line connecting the following
points: Latitude 39°21′20″ N, longitude
074°27′18″ W, thence northeast to
latitude 39°21′27.47″ N, longitude
074°27′10.31″ W, thence northeast to
latitude 39°21′33″ N, longitude
074°26′57″ W, thence northwest to
latitude 39°21′37″ N, longitude
074°27′03″ W, thence southwest to
latitude 39°21′29.88″ N, longitude
074°27′14.31″ W., thence south to
latitude 39°21′19″ N, longitude
074°27′22″ W, thence east to latitude
39°21′18.14″ N, longitude 074°27′19.25″
W, thence north to point of origin, near
Atlantic City, NJ.
During the enforcement periods, as
reflected in § 100.501(c), if you are the
operator of a vessel in the regulated area
you must comply with directions from
the Patrol Commander or any Official
Patrol displaying a Coast Guard ensign.
In addition to this notice of
enforcement in the Federal Register, the
Coast Guard will provide notification of
the enforcement periods via broadcast
notice to mariners.
Dated: July 29, 2021.
Jonathan D. Theel,
Captain, U.S. Coast Guard, Captain of the
Port Delaware Bay.
[FR Doc. 2021–16808 Filed 8–5–21; 8:45 am]
BILLING CODE 9110–04–P
PO 00000
43087
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 100
[Docket Number USCG–2021–0146]
RIN 1625–AA08
Special Local Regulation; Delaware
Bay, Lower Township, NJ
Coast Guard, DHS.
Temporary final rule.
AGENCY:
ACTION:
The Coast Guard is
establishing a special local regulation
for certain navigable waters of the
Delaware Bay. This action is necessary
to provide safety of life on these
navigable waters near Lower Township,
NJ, during a swimming competition on
August 29, 2021. This regulation
prohibits persons and vessels from
entering, transiting, or remaining within
the regulated area unless authorized by
the Captain of the Port Delaware Bay or
a designated representative.
DATES: This rule is effective from 6:30
a.m. through 9:30 a.m. on August 29,
2021.
SUMMARY:
To view documents
mentioned in this preamble as being
available in the docket, go to https://
www.regulations.gov, type USCG–2021–
0146 in the ‘‘SEARCH’’ box and click
‘‘SEARCH.’’ Click on Open Docket
Folder on the line associated with this
rule.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this rule, call or
email Petty Officer Jennifer Padilla, U.S.
Coast Guard, Sector Delaware Bay,
Waterways Management Division;
telephone 215–271–4814, email
Jennifer.l.Padilla@uscg.mil.
SUPPLEMENTARY INFORMATION:
ADDRESSES:
I. Table of Abbreviations
CFR Code of Federal Regulations
COTP Captain of the Port
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of proposed rulemaking
§ Section
U.S.C. United States Code
II. Background Information and
Regulatory History
The Coast Guard is issuing this
temporary rule without prior notice and
opportunity to comment pursuant to
authority under section 4(a) of the
Administrative Procedure Act (APA) (5
U.S.C. 553(b)). This provision
authorizes an agency to issue a rule
without prior notice and opportunity to
comment when the agency for good
Frm 00013
Fmt 4700
Sfmt 4700
E:\FR\FM\06AUR1.SGM
06AUR1
Agencies
[Federal Register Volume 86, Number 149 (Friday, August 6, 2021)]
[Rules and Regulations]
[Pages 43077-43087]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-16812]
=======================================================================
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Parts 153 and 157
[Docket No. RM20-15-002; Order No. 871-C]
Limiting Authorizations to Proceed With Construction Activities
Pending Rehearing
AGENCY: Federal Energy Regulatory Commission, Department of Energy.
ACTION: Order addressing arguments raised on rehearing and
clarification.
-----------------------------------------------------------------------
SUMMARY: The Federal Energy Regulatory Commission addresses requests
for rehearing and clarification of Order No. 871-B.
DATES: The effective date of the document published on May 13, 2021 (86
FR 26,150), is confirmed: June 14, 2021.
FOR FURTHER INFORMATION CONTACT: Tara DiJohn, Office of the General
Counsel, Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 20426, (202) 502-8671, [email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
[[Page 43078]]
------------------------------------------------------------------------
Paragraph No.
------------------------------------------------------------------------
I. Background........................................... 3
II. Discussion.......................................... 10
A. Rule Limiting Construction Authorizations Pending 11
Rehearing..........................................
1. Opposition to Project Need................... 11
2. Amendment Orders Authorizing Mid-Construction 14
Changes........................................
3. Post-Allegheny Rehearing Treatment........... 18
4. Additional Clarifications to Regulation Text. 24
5. Effective Date of Construction Authorization 28
Issuances......................................
6. Procedural Nature of Rule.................... 30
B. Policy of Presumptively Staying Section 7(c) 33
Certificate Orders.................................
1. Policy Does Not Violate NGA or APA........... 34
2. Qualifying Landowner Rehearing Requests...... 40
3. Commitment to Refrain from Exercise of 42
Eminent Domain.................................
4. Claims of Burden Shifting.................... 44
5. Consideration of Industry Concerns........... 47
6. Landowner Ability to Seek Judicial Stay...... 49
C. Commission Determination......................... 51
III. Document Availability.............................. 52
IV. Dates............................................... 55
------------------------------------------------------------------------
1. On May 4, 2021, the Federal Energy Regulatory Commission
(Commission) issued an order addressing arguments raised on rehearing
and clarification, and setting aside, in part, its prior Order No.
871.\1\ Order No. 871-B revised the rule previously adopted by the
Commission in Order No. 871 \2\ to narrow the scope of its application
and to incorporate a time limitation for the Commission to preclude
issuances of authorizations to proceed with construction activities.
Order No. 871-B also announced a new general policy of presumptively
staying certificate orders issued pursuant to section 7(c) of the
Natural Gas Act (NGA) \3\ during the 30-day rehearing period and
pending Commission resolution of any timely requests for rehearing
filed by landowners. On June 3, 2021, the Interstate Natural Gas
Association of America (INGAA), the Enbridge Gas Pipelines
(Enbridge),\4\ and Mountain Valley Pipeline, LLC (Mountain Valley)
requested clarification and rehearing of Order No. 871-B.
---------------------------------------------------------------------------
\1\ Limiting Authorizations to Proceed with Construction
Activities Pending Rehearing, Order No. 871-B, 86 FR 26150 (May 13,
2021), 175 FERC ] 61,098 (2021).
\2\ The Commission issued its June 9, 2020 Order No. 871 to
preclude the issuance of authorizations to proceed with construction
activities with respect to orders granting authorizations under
sections 3 and 7 of the Natural Gas Act (NGA) until the Commission
acts on the merits of any timely-filed request for rehearing or
until the deadline for filing a timely request for rehearing has
passed with no such request being filed. Limiting Authorizations to
Proceed with Construction Activities Pending Rehearing, Order No.
871, 85 FR 40113 (Jul. 06, 2020), 171 FERC ] 61,201 (2020).
\3\ 15 U.S.C. 717f(c).
\4\ The Enbridge Gas Pipelines include Algonquin Gas
Transmission, LLC; Big Sandy Pipeline, LLC; Bobcat Gas Storage; East
Tennessee Natural Gas, LLC; Garden Banks Gas Pipeline, LLC, Market
Hub Partners Holding, LLC; Mississippi Canyon Gas Pipeline, LLC;
Saltville Gas Storage Company L.L.C.; and Texas Eastern
Transmission, LP. The Enbridge Gas Pipelines also include natural
gas companies in which affiliates of the Enbridge Gas Pipelines own
a joint venture interest, including Alliance Pipeline L.P.,
Gulfstream Natural Gas System, L.L.C.; Maritimes & Northeast
Pipeline, L.L.C.; Nautilus Pipeline Company, L.L.C., NEXUS Gas
Transmission, LLC; Sabal Trail Transmission, LLC; Southeast Supply
Header, LLC; and Steckman Ridge, LP.
---------------------------------------------------------------------------
2. Pursuant to Allegheny Defense Project v. FERC,\5\ the rehearing
requests filed in this proceeding may be deemed denied by operation of
law. However, as permitted by section 19(a) of the NGA,\6\ we are
modifying the discussion in Order No. 871-B and continue to reach the
same result in this proceeding, as discussed below.\7\
---------------------------------------------------------------------------
\5\ 964 F.3d 1 (D.C. Cir. 2020) (en banc) (Allegheny).
\6\ 15 U.S.C. 717r(a) (``Until the record in a proceeding shall
have been filed in a court of appeals, as provided in subsection
(b), the Commission may at any time, upon reasonable notice and in
such manner as it shall deem proper, modify or set aside, in whole
or in part, any finding or order made or issued by it under the
provisions of this chapter.'').
\7\ Allegheny, 964 F.3d at 16-17. The Commission is not changing
the outcome of Order No. 871-B. See Smith Lake Improvement &
Stakeholders Ass'n v. FERC, 809 F.3d 55, 56-57 (D.C. Cir. 2015).
---------------------------------------------------------------------------
I. Background
3. In Order No. 871, the Commission explained that historically,
due to the complex nature of the matters raised on rehearing of orders
granting authorizations under NGA sections 3 and 7, the Commission had
often issued an order (known as a tolling order) by the thirtieth day
following the filing of a rehearing request, allowing itself additional
time to provide thoughtful, well-considered attention to the issues
raised on rehearing.
4. In order to balance its commitment to expeditiously responding
to parties' concerns in comprehensive orders on rehearing and the
serious concerns posed by the possibility of construction proceeding
prior to the completion of agency review, the Commission, in Order No.
871, exercised its discretion by amending its regulations to add new
Sec. 157.23, which precludes the issuance of authorizations to proceed
with construction of projects authorized under NGA sections 3 and 7
during the period for filing requests for rehearing of the initial
orders or while rehearing is pending.\8\
---------------------------------------------------------------------------
\8\ Order No. 871 also revised Sec. 153.4 (general requirements
for NGA section 3 applications) of the Commission's regulations to
incorporate a cross-reference to Sec. 157.23.
---------------------------------------------------------------------------
5. Three weeks after the Commission issued Order No. 871, the U.S.
Court of Appeals for the District of Columbia Circuit (D.C. Circuit)
issued an en banc decision in Allegheny.\9\ The court held that the
Commission's use of tolling orders solely to allow itself additional
time to consider an application for rehearing does not preclude
operation of the NGA's deemed denial provision,\10\ which enables a
rehearing applicant to seek judicial review after thirty days of agency
inaction.\11\ The court explained that, to prevent an application for
rehearing from being deemed denied, the Commission must act on an
application for rehearing within thirty days of its filing by taking
one of the four NGA-enumerated actions: grant rehearing, deny
rehearing, or abrogate or modify its order without further hearing.\12\
---------------------------------------------------------------------------
\9\ 964 F.3d 1.
\10\ 15 U.S.C. 717r(a).
\11\ Allegheny, 964 F.3d at 18-19.
\12\ See id. at 13 (quoting 15 U.S.C. 717r(a)).
---------------------------------------------------------------------------
6. Shortly thereafter, on July 9, 2020, the Commission received
three timely
[[Page 43079]]
requests for clarification and rehearing of Order No. 871. To
facilitate reconsideration of Order No. 871 and ensure a complete
record for further action, the Commission in Order No. 871-A
subsequently provided interested parties an opportunity to comment on
the arguments raised on rehearing and specific questions posed by the
Commission.\13\ In response, the Commission received twelve initial
briefs and five reply briefs from a variety of stakeholders, including
states, landowners, natural gas companies, and a consortium of public
interest organizations.\14\
---------------------------------------------------------------------------
\13\ Limiting Authorizations to Proceed with Construction
Activities Pending Rehearing, Order No. 871-A, 86 FR 7643 (Feb. 1,
2021), 174 FERC ] 61,050 (2021).
\14\ See Order No. 871-B, 175 FERC ] 61,098 at PP 8-9
(describing briefs received).
---------------------------------------------------------------------------
7. In consideration of the arguments raised on rehearing and in the
briefs, the Commission in Order No. 871-B revised Sec. 157.23 of its
regulations to provide that the rule prohibiting the issuance of
construction authorizations pending rehearing will apply only when a
request for rehearing raises issues reflecting opposition to project
construction, operation, or need.\15\ Order No. 871-B further revised
the rule to provide that the rule's restriction on issuing construction
authorizations while a qualifying rehearing request remains pending
will expire 90 days following the date that such request may be deemed
denied by operation of law under NGA section 19(a).\16\
---------------------------------------------------------------------------
\15\ Order No. 871-B, 175 FERC ] 61,098 at PP 14, 30.
\16\ Id. PP 26, 30.
---------------------------------------------------------------------------
8. In addition, the Commission in Order No. 871-B announced its
intent to stay its NGA section 7(c) certificate orders during the 30-
day rehearing period and pending Commission resolution of any timely
requests for rehearing filed by landowners.\17\ We explained that this
policy will be applied on a particularized basis, subject to certain
exceptions and, if imposed, any stay would be lifted no later than 90
days following the date that a qualifying request for rehearing may be
deemed denied by operation of law.\18\
---------------------------------------------------------------------------
\17\ Id. PP 43-51.
\18\ See id. PP 46, 51.
---------------------------------------------------------------------------
9. On June 3, 2021, INGAA and Enbridge filed requests for
clarification and rehearing of Order No. 871-B.\19\ On the same day,
Mountain Valley filed a request for clarification, or, in the
alternative, rehearing.\20\
---------------------------------------------------------------------------
\19\ INGAA's June 3, 2021 Request for Clarification and
Rehearing (INGAA Rehearing); Enbridge's June 3, 2021 Request for
Clarification and Rehearing (Enbridge Rehearing).
\20\ Mountain Valley's June 3, 2021 Request for Clarification
or, in the Alternative, Rehearing (Mountain Valley Rehearing).
---------------------------------------------------------------------------
II. Discussion
10. INGAA's and Enbridge's petitions include several requests for
clarification, or, in the alternative, rehearing of the rule, as
revised in Order No. 871-B, and of the Commission's announcement that
it would prospectively stay certain section 7(c) certificate orders
pending rehearing. Mountain Valley's petition is focused on a single
issue regarding the rule's application: whether the rule would apply if
rehearing is sought of an amendment order approving a minor mid-
construction change that would typically be submitted as a variance
request. Below, we first respond to the various requests for
clarification or rehearing of the revised rule and then to requests for
clarification or rehearing of the Commission's policy of staying
section 7(c) certificate orders pending rehearing.
A. Rule Limiting Construction Authorizations Pending Rehearing
1. Opposition to Project Need
11. In Order No. 871-B, the Commission revised Sec. 157.23(b) of
its regulations as follows:
With respect to orders issued pursuant to 15 U.S.C. 717b or 15
U.S.C. 717f(c) authorizing the construction of new natural gas
transportation, export, or import facilities, no authorization to
proceed with construction activities will be issued:
(a) until the time for the filing of a request for rehearing
under 15 U.S.C. 717r(a) has expired with no such request being
filed, or
(b) if a timely request for rehearing raising issues reflecting
opposition to project construction, operation, or need is filed,
until: (i) The request is no longer pending before the Commission,
(ii) the record of the proceeding is filed with the court of
appeals, or (iii) 90 days has passed after the date that the request
for rehearing may be deemed to have been denied under 15 U.S.C.
717r(a).\21\
---------------------------------------------------------------------------
\21\ Order No. 871-B, 175 FERC ] 61,098 at P 30 (emphasis in the
original reflecting adopted revisions to Sec. 157.23).
12. INGAA and Enbridge request that the Commission clarify the
meaning of ``opposition to project . . . need.'' Specifically, INGAA
and Enbridge urge the Commission to clarify that this phrase refers
only to situations in which a project opponent claims that there is
insufficient evidence of market need for a project under the NGA
section 7 economic balancing test.\22\ INGAA maintains that ``virtually
any generic opposition to a project'' could be viewed as an argument
that the new facilities are not ``needed,'' and that if not clarified,
this phrasing could prohibit the issuance of construction authorization
whenever any rehearing request is filed by a party generally opposed to
development.\23\ Similarly, Enbridge posits that parties could delay
construction for months by claiming on rehearing that a project is not
needed because of ``broad climate change concerns.'' \24\
---------------------------------------------------------------------------
\22\ See INGAA Rehearing at 9; Enbridge Rehearing at 13-14.
\23\ INGAA Rehearing at 10, 11.
\24\ Enbridge Rehearing at 13.
---------------------------------------------------------------------------
13. We deny INGAA's and Enbridge's requests for clarification on
this issue. The petitioners' interpretation construes the language of
the rule too narrowly. Adopting this suggestion ``would exclude from
the rule's purview rehearing requests raising environmental matters or
general opposition to a project, as well as rehearing requests filed by
members of communities that would be impacted by the construction of
new natural gas facilities.'' \25\ The Commission has already stated
that we did not intend such a result.\26\ We continue to find it
appropriate ``to refrain from permitting construction to proceed until
the Commission has acted upon any request for rehearing that opposes
project construction and operation or raises issues regarding project
need, regardless of the basis or whether rehearing is sought by an
affected landowner.'' \27\
---------------------------------------------------------------------------
\25\ Order No. 871-B, 175 FERC ] 61,098 at P 15.
\26\ Id.
\27\ Id. (emphasis added).
---------------------------------------------------------------------------
2. Amendment Orders Authorizing Mid-Construction Changes
14. INGAA and Mountain Valley seek clarification that the rule does
not apply to amendment orders that authorize limited changes while
project construction is ongoing, which the they refer to as ``mid-
construction changes,'' or, in the alternative, rehearing.\28\ INGAA
explains that mid-construction changes--such as construction method
changes, temporary workspaces changes, and minor route realignments
that do not involve new facilities or new landowners--are traditionally
filed by project developers as variance requests.\29\ However, INGAA
notes that
[[Page 43080]]
the Commission can convert mid-construction changes submitted as a
variance request into certificate amendment proceedings. In addition, a
project developer may on its own accord decide to seek approval of
certain mid-construction changes by filing an amendment application
rather than a variance request.\30\ INGAA and Mountain Valley seek
assurance that the rule would not apply to amendment orders authorizing
mid-construction changes that would traditionally be approved through
the variance process. To support this request, INGAA and Mountain
Valley point to the language of Sec. 157.23's introductory text, which
references orders authorizing ``the construction of new natural gas
transportation, export, or import facilities,'' and explain that the
type of mid-construction amendment proceedings for which it seeks
clarification do not involve new facilities.\31\
---------------------------------------------------------------------------
\28\ See INGAA Rehearing at 11-20; Mountain Valley Rehearing at
5-9.
\29\ See INGAA Rehearing at 13-15 (providing examples of prior
variance approvals allowing: temporary modification to location of
temporary access road to accommodate imminent longwall mining
activities in vicinity of construction area, a minor pipeline route
shift to avoid an obstruction placed on approved pipeline route,
modifications to pipeline route and road crossing method due to
unanticipated subsurface conditions).
\30\ See, e.g., Mountain Valley Rehearing at 5 (describing its
amendment application submitted in Docket No. CP21-57-000 requesting
Commission authorization to change the crossing method for specific
wetlands and waterbodies to be crossed by the Mountain Valley
Pipeline Project from open-cut crossings to one of several
trenchless methods). Nothing in this order prejudges action on the
amendment application.
\31\ INGAA Rehearing at 15-16 (noting that the term
``facilities'' refers to the physical plant approved by the
Commission in the original certificate order); Mountain Valley
Rehearing at 5.
---------------------------------------------------------------------------
15. If the Commission declines to grant clarification, INGAA and
Mountain Valley request rehearing of this issue. If the Commission
agrees that the rule does not apply to orders authorizing limited mid-
construction changes, INGAA further asks the Commission to clarify that
it retains discretion to issue an authorization to proceed with
construction during the 30-day rehearing period following such an
order.\32\
---------------------------------------------------------------------------
\32\ INGAA Rehearing at 18-20.
---------------------------------------------------------------------------
16. In Order No. 871-B, we explained that the rule limiting
construction authorizations would not apply to a request for rehearing
of an non-initial order that merely implements the terms, conditions,
or provisions of an initial authorizing order, ``such as a delegated
order issuing a notice to proceed with construction, approving a
variance request, or allowing the applicant to place the project, or a
portion thereof, in service.'' \33\ With respect to amendment orders,
the Commission stated that the rule would apply only to the facilities
approved by the amendment order for which rehearing is sought: it would
not relate back to any facilities previously approved by the Commission
in the initial authorizing order that remain unchanged by the amendment
order.\34\
---------------------------------------------------------------------------
\33\ Order No. 871-B, 175 FERC ] 61,098 at P 17.
\34\ Id. P 18.
---------------------------------------------------------------------------
17. The Commission has already provided substantial guidance in
response to INGAA's previous requests for clarification regarding the
rule's application to non-initial and amendment orders. The scenario
now posed by INGAA and Mountain Valley on rehearing of Order No. 871-B
is a slightly different factual scenario. But the Commission is not
required to identify and address every conceivable permutation of facts
under which questions about the rule's application may arise.\35\
Therefore, it is premature to address the possible range of future mid-
construction changes. As a general matter, we think it likely that the
rule would not apply if rehearing is sought of an amendment order
approving a mid-construction change that is generally consistent with
the terms and conditions of the original authorization order and does
not involve new facilities or new landowners. However, we will consider
the circumstances of each request on a case-by-case basis, and will
indicate in the Commission's order in each case whether the rule
applies.
---------------------------------------------------------------------------
\35\ See, e.g., Motor Vehicle Mfrs. Ass'n of U.S., Inc. v. State
Farm Mut. Auto. Ins. Co., 463 U.S. 29, 51 (1983) (``It is true that
a rulemaking `cannot be found wanting simply because the agency
failed to include every alternative device and thought conceivable
by the mind of man . . . regardless of how uncommon or unknown that
alternative may have been[.]'') (quoting Vt. Yankee Nuclear Power
Corp. v. Nat. Res. Def. Council, Inc., 435 U.S. 519, 551 (1978)).
---------------------------------------------------------------------------
3. Post-Allegheny Rehearing Treatment
18. Enbridge contends that the Commission erred by determining that
an order granting rehearing for further proceedings would vacate the
certificate authorization,\36\ arguing that the Commission cannot
revoke certificate authority merely by issuing an interlocutory order
granting rehearing or establishing a hearing, briefing schedule,
investigation or other similar proceeding, but rather, must make a
specific finding on the issues with the requisite support.\37\
According to Enbridge, an interlocutory order revoking a certificate
would improperly place the certificate holder in ``legal limbo'' as an
aggrieved party unable to seek rehearing and appeal of the
interlocutory action.\38\ Enbridge urges the Commission to establish a
specific timeframe for issuance of a substantive order following a
grant of rehearing subject to further proceedings or to set a deadline
after which a construction authorization may issue.\39\
---------------------------------------------------------------------------
\36\ Enbridge Rehearing at 9-10.
\37\ Id. at 9.
\38\ Id. at 10.
\39\ Id. at 10-11.
---------------------------------------------------------------------------
19. INGAA takes a different tack, suggesting that the Commission
adopt a case-by-case approach to determining whether an initial order
will be vacated when rehearing is granted.\40\ Specifically, INGAA asks
the Commission to clarify that it did not adopt a blanket rule that a
grant of rehearing for further procedures means the entire underlying
order is vacated,\41\ that it will instead employ a case-by-case
approach for determining whether grant of rehearing would result in
vacatur,\42\ and that the entire certificate authorization will not be
vacated if the Commission seeks additional briefing or information on
one or more targeted issues.\43\
---------------------------------------------------------------------------
\40\ INGAA Rehearing at 20-23.
\41\ See id. at 20-22.
\42\ Id. at 22.
\43\ Id.
---------------------------------------------------------------------------
20. Both INGAA and Enbridge note that the Commission's prior
practice of issuing tolling orders did not result in vacatur of
underlying order.\44\ Thus, despite changing its procedures for
handling requests for rehearing following Allegheny, INGAA and Enbridge
argue that the Commission has departed from longstanding practice and
failed to acknowledge such departure.\45\
---------------------------------------------------------------------------
\44\ See INGAA Rehearing at 23; Enbridge Rehearing at 10.
\45\ See INGAA Rehearing at 23 (citing FCC v. Fox Television
Stations, Inc., 556 U.S. 502, 515 (2009) (agencies must ``provide
reasoned explanation'' and show good reasons for a change in
position, but ``need not demonstrate to a court's satisfaction that
the reasons for the new policy are better than the reasons for the
old one'') (emphasis in the original)); Enbridge Rehearing at 10
(same).
---------------------------------------------------------------------------
21. In response to INGAA's request, Order No. 871-B posited four
post-Allegheny scenarios that could arise following the filing of a
request for rehearing to explain when such a request would remain
pending before the Commission and, thus, preclude the issuance of a
construction authorization.\46\ The fourth scenario addressed a
situation contemplated by the Allegheny court, where the Commission
could ``grant rehearing for the express purpose of revisiting and
substantively reconsidering a prior decision,'' where it ``needed
additional time to allow for supplemental briefing or further hearing
processes.'' \47\ In Order No. 871-B, the Commission stated that
``[u]nder those circumstances, i.e., where the Commission grants
rehearing without issuing a final order, the original
[[Page 43081]]
authorization would no longer be in effect and the provisions of Order
No. 871 would no longer apply since there would be no final order
pursuant to which a notice to proceed could be issued.'' \48\
---------------------------------------------------------------------------
\46\ See Order No. 871-B, 175 FERC ] 61,098 at PP 19-29.
\47\ Id. P 27 (citing 964 F.3d at 16).
\48\ Id.
---------------------------------------------------------------------------
22. As an initial matter, Enbridge and INGAA err to the extent that
they suggest the Commission determined that original authorization
orders necessarily would be vacated or revoked by an interlocutory
order granting rehearing for further procedures, as described by the
Allegheny court. We merely stated, in response to a prior request for
clarification from INGAA, that under the specified circumstances
contemplated by the Allegheny court, the provisions of Order No. 871
``would no longer apply since there would be no final order pursuant to
which a notice to proceed could be issued.'' \49\ We agree with INGAA
that a case-by-case approach is necessary for the Commission to
determine the effect that a grant of rehearing for further procedures
would have on the underlying authorization. In the order granting
rehearing for further procedures, we will indicate the order's effect
on the underlying authorization.
---------------------------------------------------------------------------
\49\ Id.
---------------------------------------------------------------------------
23. The Commission previously declined a request to establish a
deadline for issuing a final merits order following a grant of
rehearing for further procedures.\50\ As we stated at the time,
timelines associated with supplemental briefing or evidentiary
submissions may vary based on the complexity of the issues warranting
further procedures.\51\ Thus, we continue to find that a case-by-case
approach is warranted in the event that the Commission grants rehearing
because it ``need[s] additional time to allow for supplemental briefing
or further hearing processes.'' \52\
---------------------------------------------------------------------------
\50\ Id. P 28.
\51\ Id.
\52\ Allegheny, 964 F.3d at 16.
---------------------------------------------------------------------------
4. Additional Clarifications to Regulation Text
24. INGAA argues that Sec. 157.23(b) should be revised to add the
phrase ``the earliest of the time at which,'' as italicized below:
If a timely request for rehearing raising issues reflecting
opposition to project construction, operation, or need is filed,
until the earliest of the time at which: (1) The request is no
longer pending before the Commission, (2) the record of the
proceeding is filed with the court of appeals, or (3) 90 days has
passed after the date that the request for rehearing may be deemed
to have been denied under 15 U.S.C. 717r(a).\53\
---------------------------------------------------------------------------
\53\ INGAA Rehearing at 24.
INGAA contends that this addition would clarify and better reflect
what it understands to be the Commission's intent, as reflected by the
Commission's use of the conjunction ``or'' and references throughout
Order No. 871-B that suggest that the restriction on issuance of
construction authorizations will apply until the earliest of the three
``triggering events'' contemplated by the rule.\54\ If the suggested
change is not adopted, INGAA fears that project opponents may argue
that no authorization to proceed with construction should be issued
until the occurrence of the later of the three ``triggering events''
comes to pass.\55\
---------------------------------------------------------------------------
\54\ Id. at 24-25.
\55\ Id. at 25.
---------------------------------------------------------------------------
25. INGAA is correct in its interpretation that a construction
authorization may be issued upon the earliest occurrence of the three
triggering events enumerated in the regulation. However, we decline to
further revise the regulatory language. As currently drafted, the rule
uses the conjunction ``or'' which serves to distinguish the three
scenarios as alternatives and signals that a construction authorization
may issue once the earliest of the three events occurs.
26. In addition, INGAA renews its request that the Commission
revise Sec. 157.23 to expressly state that the rule may be waived for
good cause shown.\56\ INGAA urges the Commission to consider cases
finding in other contexts that agencies' authority to waive their own
rules is not unlimited and that agencies are bound by, and courts must
enforce, the unambiguous terms of regulations.\57\
---------------------------------------------------------------------------
\56\ Id. at 28-29.
\57\ Id. at 28 (citing Reuters Ltd. v. FCC, 781 F.2d 946, 950
(D.C. Cir. 1986) (finding that FCC failed to follow its rules and
regulations in resolving dispute between competing applicants for
microwave radio station licenses); Erie Boulevard Hydropower, LP v.
FERC, 878 F.3d 258, 269 (D.C. Cir. 2017) (stating that ``an agency
action fails to comply with its regulations, that action may be set
aside as arbitrary and capricious'' and that ``[a]n agency decision
that departs from agency precedent without explanation is similarly
arbitrary and capricious.'') (citations omitted); Kisor v. Wilkie,
139 S. Ct. 2400, 2415 (2019) (explaining that when there is ``only
one reasonable construction of a regulation,'' Auer deference is not
appropriate and a court must not defer to any other reading of the
regulation); 5 U.S.C. 706(2)).
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27. The Commission previously declined to adopt INGAA's suggestion
to incorporate into the rule an explicit waiver provision, finding it
retains authority to waive its own regulations.\58\ INGAA raises no new
arguments that cause us to reconsider that decision.
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\58\ Order No. 871-B, 175 FERC ] 61,098 at P 29.
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5. Effective Date of Construction Authorization Issuances
28. Enbridge urges the Commission to clarify that its staff may
issue authorizations to proceed with construction prior to the deadline
established by the rule so long as the authorization does not become
effective until the occurrence of the earliest of the three triggering
events enumerated in the rule (i.e., the rehearing request is no longer
pending before the Commission, the record of the proceeding is filed
with the court of appeals, or 90 days after the date that the request
may be deemed denied).\59\ Allowing project developers to obtain
advance confirmation from Commission staff that all preconstruction
conditions have been satisfied would, according to Enbridge, help
project developers set and meet construction milestones, lessen the
chance of additional regulatory delays, and would reflect the
Commission's articulated goal of achieving an appropriate balance of
interests.\60\
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\59\ Enbridge Rehearing at 11-12.
\60\ Id. at 12.
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29. The Commission denies the requested clarification. We believe
that, in practice, a conditional construction authorization of the
nature Enbridge suggests has the potential to create uncertainty for
project developers, stakeholders, and Commission staff alike as to the
effective date of the authorization, which outweighs the purported
benefits that Enbridge identifies. Moreover, the advance notice
contemplated by Enbridge fails to account for a change in status of a
project developer's compliance with the terms of its section 7
certificate or section 3 authorization that could arise in the interim.
We believe that a cleaner approach is for the Commission to issue
authorizations to proceed with construction once all requisite
conditions have been satisfied and the rule's prohibition on such
issuance has elapsed.
6. Procedural Nature of Rule
30. INGAA urges the Commission to reconsider its determination that
Order No. 871-B is a procedural rule not subject to the Administrative
Procedure Act's (APA) notice and comment procedures.\61\ Where a
project developer has already fulfilled the necessary prerequisites for
beginning construction, INGAA argues that the Commission failed to
explain how it has ``unfettered discretion'' to refuse to allow
construction of facilities it has already found required by the public
[[Page 43082]]
convenience and necessity.\62\ INGAA also characterizes as misleading
the ``85-day'' figure--cited in Order No. 871-B to illustrate that over
a five year period, on average, 85 days elapsed between issuance of an
initial order and issuance of an authorization to proceed with
construction--for it fails to account for project differences and
assumes that developers rely on average figures when planning project
construction and in-service deadlines.\63\ According to INGAA, the rule
``dramatically changes'' the timeline for when a project can be placed
in service and ``implicate[s] the investment-backed expectations of all
project developers.'' \64\
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\61\ See INGAA Rehearing at 25-28.
\62\ Id. at 26.
\63\ See id. at 26-27; Order No. 871-B, 175 FERC ] 61,098 at P
37.
\64\ INGAA Rehearing at 27.
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31. The Commission previously responded to concerns that the rule
adopted in Order No. 871 was not a procedural rule and thus should have
been issued following the APA's notice and comment requirements.\65\ As
we explained, the APA's notice and comment procedures were not required
because the rule neither substantially ``alters the rights or
interests'' of regulated natural gas companies nor changes the agency's
substantive outcomes.\66\ We also explained that the timing of when to
permit construction to begin is a matter entirely within the
Commission's existing discretion and not a matter of right.\67\ INGAA's
arguments on rehearing do not demonstrate an error in the Commission's
analysis.\68\
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\65\ See Order No. 871-B, 175 FERC ] 61,098 at PP 35-39.
\66\ Id. at P 35 (citing See Am. Hosp. Ass'n v. Bowen, 834 F.2d
1037, 1047 (D.C. Cir. 1987)).
\67\ Id. (explaining that nothing in the NGA or the Commission's
regulations, other than the rule adopted in Order No. 871, addresses
the timing of authorizations to commence construction or prevents
the Commission from acting on rehearing prior to issuing an
authorization to proceed with construction).
\68\ See, e.g., Batterton v. Marshall, 648 F.2d 694, 707 (D.C.
Cir. 1980) (``A useful articulation of the [rule of agency
organization, procedure, or practice] exemption's critical feature
is that it covers agency actions that do not themselves alter the
rights or interests of parties, although it may alter the manner in
which the parties present themselves or their viewpoints to the
agency.'').
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32. Order No. 871 is premised on the Commission's desire to balance
its commitment to expeditiously respond to parties' concerns in
comprehensive orders on rehearing and the serious concerns posed by the
possibility of construction proceeding prior to the completion of
agency review.\69\ In Order No. 871-B, we cited the average 85-day span
between an initial authorizing order and issuance of a construction
authorization only to illustrate that in many cases construction cannot
begin immediately upon issuance of an order authorizing new facilities
under NGA sections 3 or 7.\70\
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\69\ Order No. 871, 171 FERC ] 61,201 at P 11.
\70\ See Order No. 871-B, 175 FERC ] 61,098 at P 37.
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B. Policy of Presumptively Staying Section 7(c) Certificate Orders
33. In Order No. 871-B, the Commission announced a new policy of
presumptively staying an NGA section 7(c) certificate order during the
30-day period for seeking rehearing and pending Commission resolution
of any timely requests for rehearing filed by a landowner, until the
earlier of the date on which the Commission (1) issues a substantive
order on rehearing or otherwise indicates that the Commission will not
take further action, or (2) 90 days following the date that a request
for rehearing may be deemed to have been denied under NGA section
19(a). We explained that this policy will not apply where the pipeline
developer has, at the time of the certificate order, already acquired
all necessary property interests or where no landowner protested the
section 7 application. In addition, we explained that the stay will
automatically lift following the close of the 30-day period for seeking
rehearing if no landowner files a timely request for rehearing of the
certificate order. As we explained, this policy balances the competing
interests at stake, including the project developer's interest in
proceeding with construction when it has obtained all necessary
permits, and a project opponent's interest in being able to challenge
the Commission's ultimate decision in a timely manner.
1. Policy Does Not Violate NGA or APA
34. INGAA and Enbridge argue that the stay policy is unlawful,
under the NGA and the APA, because it seeks to achieve an objective--
conditioning a certificate holder's eminent domain authority--that is
directly prohibited by statute through indirect means.\71\ INGAA and
Enbridge contend that because the Commission has no authority to deny
or restrict certificate holders from exercising the power of eminent
domain, the Commission's new policy of presumptively staying its
section 7 certificate orders is an unlawful workaround of a statutory
prohibition and improperly limits a certificate holder's statutorily
conferred eminent domain authority.\72\
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\71\ INGAA Rehearing at 29-31; Enbridge Rehearing at 19-21.
\72\ See INGAA Rehearing at 29-30 (citing Civil Aeronautics Bd.
v. Delta Air Lines, Inc., 367 U.S. 316, 328 (1961); Cont'l Air
Lines, Inc. v. CAB, 522 F.2d 107, 115 (D.C. Cir. 1974)); Enbridge
Rehearing at 19-21.
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35. INGAA and Enbridge further contend that the stay policy
violates section 19(c) of the NGA, which states that the filing of a
rehearing request ``shall not, unless specifically ordered by the
Commission, operate as a stay of the Commission's order.'' \73\ INGAA
maintains that the Commission, by announcing in Order No. 871-B a
general policy of presumptively staying certificate orders pending
rehearing, acted in general, rather than with the specificity that NGA
section 19(c) demands.\74\ INGAA further asserts that the policy is
unlawful because it will result in the Commission staying its orders
before either a rehearing request has been filed or a stay has been
sought, an outcome not contemplated by the NGA.\75\ Finally, INGAA
takes issue with the Commission's position that its authority to stay a
certificate order is found in the APA, arguing that section 705 of that
act authorizes the Commission to postpone the effective date of its
actions only ``pending judicial review,'' and that this authority is
inapplicable prior to the filing of a request for rehearing and while
such request is pending before the Commission.\76\
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\73\ INGAA Rehearing at 31 (quoting 15 U.S.C. 717r(c)); see
Enbridge Rehearing at 16-19.
\74\ INGAA Rehearing at 31. INGAA notes that the word specific
means ``[o]f, relating to, or designating a particular . . . thing''
and that if the Commission wants to grant a stay, it must do so
based on the particular facts of a particular case. Id. at 32.
\75\ Id.
\76\ Id. at 33 (citing 5 U.S.C. 705).
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36. As explained in Order No. 871-B, NGA section 16 gives the
Commission an independent basis for granting stays of a certificate
order.\77\ Specifically, section 16 provides that ``[t]he Commission
shall have the power to perform any and all acts, and to prescribe,
issue, make, amend, and rescind such orders, rules, and regulations as
it may find necessary or appropriate to carry out the provisions
[[Page 43083]]
of this [Act].'' \78\ Section 16 also mandates that Commission orders
``shall be effective on the date and in the manner which the Commission
shall prescribe.'' \79\ Thus, the NGA provides the Commission with
broad authority to take actions necessary to carry out the act, and we
find that, given the significant consequences that eminent domain has
for landowners, issuance of a stay of a certificate order under certain
narrowly prescribed circumstances is well within this authority.
Because NGA section 16 is broadly applicable, the Commission utilizes
the standard set forth in APA section 705 to determine whether a stay
is justified.\80\ But the Commission's underlying authority derives
from NGA section 16.
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\77\ 15 U.S.C. 717o; see Pub. Util. Dist. No. 1 of Okanogan
Cty., Wash., 162 FERC ] 61,040, at P 13 (2018) (Okanogan PUD)
(addressing analogous provision of the Federal Power Act (FPA))
(citing 16 U.S.C. 825h; Kings River Conservation Dist., 30 FERC ]
61,151, at 61,320 (1985) (``The Commission's authority to issue a
stay of a license order is derived primarily from Section 309 of the
[FPA]''); Keating v. FERC, 569 F.3d 427, 429 (D.C. Cir. 2009)
(noting that FERC has stayed the commencement of construction
deadline pursuant to section 309 of the FPA)). The courts have held
that the NGA and FPA should be interpreted consistently. See Env'tl
Action v. FERC, 996 F.2d 401, 410 (D.C. Cir. 1993); Tenn. Gas
Pipeline Co. v. FERC, 860 F.2d 446, 454 (D.C. Cir. 1988); see also
Ark. La. Gas Co. v. Hall, 453 U.S. 571, 577 n.7 (1981).
\78\ 15 U.S.C. 717o.
\79\ Id.
\80\ Under the APA, an agency may issue a stay of its order
where the ``agency finds that justice so requires.'' 5 U.S.C. 705.
In determining whether this standard has been met, we consider
several factors, including: (1) Whether a stay is necessary to
prevent irreparable injury; (2) whether issuing a stay may
substantially harm other parties; and (3) whether a stay is in the
public interest. See, e.g., Millennium Pipeline Co., L.L.C., 141
FERC ] 61,022, at P 13 (2012); Ruby Pipeline, L.L.C., 134 FERC ]
61,103, at P 17 (2011). But see Okanogan PUD, 162 FERC ] 61,040 at P
13, n.21 (explaining, in the hydroelectric licensing context, that
``[p]reviously, the Commission has applied different standards than
the one set forth in section 705 of the APA.'') (citing Monongahela
Power Co., 7 FERC ] 61,054 (1979) (``we considered [the motions for
stay] under the standards of Virginia Jobbers Association v. FPC,
259 F.2d 291 (D.C. Cir. 1958) and Washington Metropolitan Area
Transit Commission v. Holiday Tours, Inc., 559 F.2d 841 (D.C. Cir.
1977)''); Nantahala Power & Light Co., 20 FERC ] 61,026 (1982)
(``finding that a stay pending rehearing is in the `public interest'
''); Kings River Conservation Dist., 27 FERC ] 61,098 (1984) (``[i]t
is appropriate and in the public interest to stay the license issued
in Project No. 2890 until completion of judicial review.'')).
---------------------------------------------------------------------------
37. In any event, we disagree with INGAA's argument that APA
section 705, which authorizes an agency to postpone the effective date
of its actions ``pending judicial review,'' \81\ means that a stay
issued pursuant to this authority must be connected to ongoing judicial
review proceedings and is thus inapplicable to any proceedings before
the Commission that precede judicial review (e.g., the time for filing
and considering requests for rehearing).\82\ INGAA construes the
statute too narrowly. The clause ``pending judicial review'' in section
705 could reasonably be construed as ``in anticipation of'' in which
case all that is required is that the Commission reasonably
anticipate--because rehearing has been sought or a proposal has been
strongly protested--that a party will seek judicial review.
---------------------------------------------------------------------------
\81\ 5 U.S.C. 705.
\82\ See INGAA Rehearing at 33. Indeed, a request for rehearing
does not simply precede, but is a mandatory prerequisite to,
judicial review. 15 U.S.C. 717r(b).
---------------------------------------------------------------------------
38. Further, in Order No. 871-B, the Commission announced only a
general policy with respect to stays.\83\ Accordingly, although
contained in a final rule, the Commission's discussion of that general
policy did nothing more than explain how the Commission intends to
approach a particular set of questions in the future without
conclusively resolving those questions or otherwise fixing any rights
or responsibilities.\84\ Indeed, as explained in Order No. 871-B, the
Commission intends to make a particularized application of the policy
in individual certificate orders and parties to those individual
proceedings will have the opportunity to challenge the Commission's
determination on whether to issue a stay in those proceedings. Notably,
the Commission has issued five certificate orders since adopting the
policy reflected in Order No. 871-B, with none of those orders
containing a stay along the lines contemplated in Order No. 871-B.\85\
---------------------------------------------------------------------------
\83\ General statements of policy are not be subject to pre-
enforcement judicial review. Nat'l Min. Ass'n v. McCarthy, 758 F.3d
243, 251 (D.C. Cir. 2014) (citing Nat'l Park Hosp. Ass'n v. Dep't of
Interior, 538 U.S. 803, 809-11 (2003)).
\84\ See, e.g., INGAA v. FERC, 285 F.3d 18, 59-61 (D.C. Cir.
2002) (finding Commission's discussion of seasonal rates within a
final rule ``represents only a policy statement and therefore is
neither binding on any party nor ripe for judicial review''); Am.
Gas Ass'n v. FERC, 888 F.2d 136, 151-52 (D.C. Cir. 1989) (finding
challenges to substantive aspects of Commission's cost recovery
policy statement not ripe for review); Pac. Gas & Elec. Co. v. FPC,
506 F.2d 33, 35 (D.C. Cir. 1974) (finding Order No. 467, a policy
proposal on delivery priorities by natural gas companies during
curtailment periods, to be a general statement of policy that was
not reviewable under NGA section 19(b) because it lacked
``sufficiently immediate and significant impact upon petitioners'').
That is consistent with the Commission's long-standing approach of
articulating its policies with respect to NGA section 7 certificate
applications, while leaving all actual findings and determinations
for future proceedings. See, e.g., Certification of New Interstate
Natural Gas Pipeline Facilities, 88 FERC ] 61,227, corrected, 89
FERC ] 61,040 (1999), clarified, 90 FERC ] 61,128, further
clarified, 92 FERC ] 61,094, at 61,375 (2000) (explaining that the
purpose of the Certificate Policy Statement is ``to provide the
natural gas industry with guidance by stating the analytical
framework the Commission will use to evaluate proposals for
certificating new construction'' and that ``generally objections to
such a statement are not directly reviewable. Rather, such review
must await implementation of the policy in a specific case.''). In
line with that interpretation, the discussion in Order No. 871-B
regarding how the Commission will approach those future cases was
not accompanied by any revisions to the Commission's rules or
regulations.
\85\ See Tuscarora Gas Transmission Co., 175 FERC ] 61,147
(2021); N. Natural Gas Co., 175 FERC ] 61,146 (2021); Enable Gas
Transmission, LLC, 175 FERC ] 61,183 (2021); WBI Energy
Transmission, Inc., 175 FERC ] 61,182 (2021); N. Natural Gas Co.,
175 FERC ] 61,238 (2021). There were no landowner protests in any of
these cases.
---------------------------------------------------------------------------
39. Contrary to INGAA's and Enbridge's assertions, nothing in NGA
section 19(c), which on its face contemplates that the Commission may
stay its own orders, precludes the Commission from determining that a
stay of an individual certificate order during the 30-day period for
seeking rehearing. Section 19(c) provides that a request for rehearing
does not automatically stay a Commission order.\86\ That section does
not speak to, or otherwise limit, the Commission's authority to issue a
stay of its own accord. As described above, NGA section 16 provides the
Commission with broad authority to issue a stay where warranted by the
facts and circumstances in a particular proceeding.
---------------------------------------------------------------------------
\86\ See 15 U.S.C. 717r(c) (``The filing of an application for
rehearing . . . shall not, unless specifically ordered by the
Commission, operate as a stay of the Commission's order.'').
---------------------------------------------------------------------------
2. Qualifying Landowner Rehearing Requests
40. Enbridge seeks clarification that, for the purpose of the
policy, the term ``landowner'' means ``directly affected'' landowner,
as defined by the Commission's regulations, or, in the alternative,
rehearing.\87\ This clarification, Enbridge maintains, would align with
the Commission's justification for the policy as it would ensure that a
stay is applied only when a ``protest or request for rehearing is
submitted by the owner of property that would be subject to an eminent
domain proceeding (i.e., to directly affected landowners), and not
owners of property that merely abuts the construction right-of-way or
falls within a certain radius of compressor station construction or
storage facilities.'' \88\
---------------------------------------------------------------------------
\87\ Enbridge Rehearing at 14-16 (citing 18 CFR 157.6(d)(2)(i)
(2020)).
\88\ Id. at 15 (citing 18 CFR 157.6(d)(2)(i)).
---------------------------------------------------------------------------
41. As a general matter, we agree with Enbridge's suggestion that
the policy is intended to protect those whose property would be crossed
or used by the proposed pipeline project as these are the landowners
whose property rights could be acquired by the eminent domain authority
that NGA section 7(h) confers upon certificate holders.\89\ Should the
issue of a landowner's specific property interests arise in a
[[Page 43084]]
proceeding, the Commission will consider it.
---------------------------------------------------------------------------
\89\ See 15 U.S.C 717f(h) (authorizing certificate holders to
acquire by eminent domain ``the necessary right-of-way to construct,
operate, and maintain a pipe line or pipe lines for the
transportation of natural gas, and the necessary land or other
property, in addition to right-of-way, for the location of
compressor stations, pressure apparatus, or other stations or
equipment necessary to the proper operation of such pipe line or
pipe lines''); see also 18 CFR 157.6(d)(2)(i) (defining directly
affected landowners).
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3. Commitment To Refrain From Exercise of Eminent Domain
42. Enbridge seeks clarification that the Commission will promptly
lift a stay following a certificate holder's commitment that it will
not exercise its right of eminent domain ``for any reason other than to
obtain the access necessary to complete surveys'' while a qualifying
landowner rehearing request is pending,\90\ or, in the alternative,
rehearing.
---------------------------------------------------------------------------
\90\ Enbridge Rehearing at 21-23.
---------------------------------------------------------------------------
43. In Order No. 871-B, the Commission explained that a developer
may file a motion seeking ``to preclude, or lift, a stay based on a
showing of significant hardship,'' and expressly stated ``that a
commitment by the pipeline developer not to begin eminent domain
proceedings until the Commission issues a final order on any landowner
rehearing requests will weigh in favor of granting such a motion.''
\91\ We reiterate that conclusion, but will not pre-judge the merits of
any motion along the lines contemplated in Order No. 871-B. As with the
other aspects of this policy, those determinations will be made in any
future proceeding.
---------------------------------------------------------------------------
\91\ Order No. 871-B, 175 FERC ] 61,098 at P 51.
---------------------------------------------------------------------------
4. Claims of Burden Shifting
44. INGAA argues that the Commission unlawfully shifted to pipeline
developers the burden of proof to show that a stay is not warranted and
argues that such a change in policy can only be accomplished through
notice and comment rulemaking.\92\ INGAA contends that the Commission
failed to provide justification for its departure from past practice
and failed to explain why it is permissible to shift this burden.\93\
Enbridge makes a similar argument, but takes it a step further arguing
that the Commission failed to ``assess whether there were reliance
interests, determine whether they were significant, and weigh any such
interests against competing policy concerns.'' \94\ INGAA requests
further clarification regarding how the Commission will determine when
a stay should be issued and how specifically a developer can overcome
the presumption that a stay will be granted.\95\
---------------------------------------------------------------------------
\92\ See INGAA Rehearing at 33-35.
\93\ Id. at 33-34.
\94\ Enbridge Rehearing at 18-19.
\95\ INGAA Rehearing at 34-35.
---------------------------------------------------------------------------
45. In Order No. 871-B, the Commission acknowledged that the stay
policy is a departure from past practice and explained its belief that
``this new policy better balances the relevant considerations--such as
fairness, due process, and developer certainty--thereby justifying the
change in policy.'' \96\ We disagree with the petitioners that this
policy improperly shifts the burden to pipeline developers. As we
previously explained, the Commission will determine whether to impose a
stay based on the circumstances presented in each particular
certificate proceeding--the burden is not on the pipeline. Rather, the
Commission is obligated to ensure that all of its decisions, including
whether to impose a stay in individual certificate proceedings, are
supported by the record and reasonably explained.\97\ And parties to
those individual proceedings will have the opportunity to provide input
to and challenge the Commission's decision to issue a stay, or not, in
those proceedings.
---------------------------------------------------------------------------
\96\ Order No. 871-B, 175 FERC ] 61,098 at P 49, n.101.
\97\ See 15 U.S.C. 717r(b); 5 U.S.C. 706.
---------------------------------------------------------------------------
46. We further disagree with INGAA's assertion that public notice
and comment was required prior to the Commission announcing the stay
policy. General statements of policy, such as the one announced in
Order No. 871-B, are exempted from the APA's notice and comment
procedures.\98\
---------------------------------------------------------------------------
\98\ 5 U.S.C. 553(b)(A).
---------------------------------------------------------------------------
5. Consideration of Industry Concerns
47. INGAA contends that the Commission both failed to sufficiently
appreciate the harm that will befall the natural gas industry and to
explain what activities certificate holders can perform while a stay is
in place.\99\ INGAA points to the length of this proceeding to cast
doubt on the Commission's statement that it has increased the speed
with which it resolves rehearing requests.\100\ It also seeks further
clarity regarding the types of activities that certificate holders may
undertake while a stay is in place.
---------------------------------------------------------------------------
\99\ See INGAA Rehearing at 35-39.
\100\ Id. at 36.
---------------------------------------------------------------------------
48. The Commission fully considered industry concerns and
ultimately concluded that the stay policy announced in Order No. 871-B
struck an appropriate balance between the interests of pipeline
developers and landowners.\101\ The rehearing process in this
rulemaking proceeding, involving generally applicable policy
considerations, is not representative of the increased speed with which
the Commission handles project-specific rehearing requests in the post-
Allegheny era. In fact, the Commission continues to strive to act on
landowner rehearing requests (the subset of rehearing requests that may
result in a stay extending beyond the 30-day period for seeking
rehearing) within 30 days. The petitioners do not cite an instance of a
delay in the Commission's issuance of an order on rehearing of a
certificate order. While a stay is intact, certificate holders can
engage only in those development activities that they were free to
undertake prior to receiving a certificate order, such as negotiating
easement agreements with landowners and conducting environmental
surveys on private property they have permission to access.
---------------------------------------------------------------------------
\101\ See Order No. 871-B, 175 FERC ] 61,098 at PP 48-51.
---------------------------------------------------------------------------
6. Landowner Ability To Seek Judicial Stay
49. Finally, INGAA asserts that the Commission failed to explain
why the policy is necessary in light of an aggrieved party's ability to
seek a stay from a reviewing court after a request for rehearing is
deemed denied.\102\
---------------------------------------------------------------------------
\102\ INGAA Rehearing at 39.
---------------------------------------------------------------------------
50. As the Commission explained in Order No. 871-B, certificate
holders can, and routinely do, initiate condemnation proceedings
immediately upon receipt of a certificate order.\103\ Absent a stay in
a particular proceeding, certificate holders have the ability to
initiate condemnation actions against landowners prior to the
expiration of the 30-day period for seeking rehearing, and prior to the
30-day period for the Commission to act on such a request before it may
be deemed denied. This leaves a gap of approximately 60 days preceding
a deemed denial and during which time landowners could be susceptible
to condemnation proceedings being initiated prior to a reviewing court
obtaining concurrent jurisdiction following the filing of a petition
for review.\104\ As we explained at length in Order No. 871-B, this
Commission finds the fundamental unfairness that could result from that
outcome untenable. Further, the stay policy is an appropriate exercise
of our authority, and there is no need to leave these matters solely to
the courts.
---------------------------------------------------------------------------
\103\ See, e.g., Allegheny, 964 F.3d at 6.
\104\ See, e.g., Envtl. Def. Fund v. FERC, No. 20-1016, et al.,
2021 WL 2546672, at *8, *15 (D.C. Cir. June 22, 2021) (citing to
relevant pipeline's use of eminent domain in support of court's
decision to vacate certificate order).
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C. Commission Determination
51. In response to INGAA's, Enbridge's, and Mountain Valley's
requests for rehearing, Order No. 871-B is hereby modified and the
result
[[Page 43085]]
sustained, as discussed in the body of this order.
III. Document Availability
52. 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 the Commission's Home Page (https://www.ferc.gov). At
this time, the Commission has suspended access to the Commission's
Public Reference Room due to the President's March 13, 2020
proclamation declaring a National Emergency concerning the Novel
Coronavirus Disease (COVID-19).
53. From the Commission'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 in the docket number
field.
54. User assistance is available for eLibrary and the Commission's
website during normal business hours from FERC Online Support at (202)
502-6652 (toll free at 1-866-208-3676) or email at
[email protected], or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at
[email protected].
IV. Dates
55. The effective date of the document published on May 13, 2021
(86 FR 26,150), is confirmed: June 14, 2021.
By the Commission. Commissioner Chatterjee is not participating.
Commissioner Danly is dissenting with a separate statement attached.
Issued: August 2, 2021.
Debbie-Anne A. Reese,
Deputy Secretary.
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
Limiting Authorizations To Proceed With Construction Activities Pending
Rehearing
DANLY, Commissioner, dissenting:
1. I dissent in full from today's order affirming the majority's
modification and expansion of Order No. 871.\1\ As I stated in my
dissent in Order No. 871-B, I would repeal the rule as it is no longer
required by law or prudence.\2\ I write separately today to further
explain how the Commission's new, unnecessary, and unjustifiable
presumption to stay certificate orders conflicts with the plain text of
the Natural Gas Act (NGA) and is beyond the Commission's authority.\3\
I also write to explain how the majority's presumptive stay is not
based on reasoned decision making and therefore runs afoul of the
Administrative Procedure Act (APA).
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\1\ See Limiting Authorizations to Proceed with Construction
Activities Pending Rehearing, 176 FERC ] 61,062 (2021) (Order No.
871-C).
\2\ See Limiting Authorizations to Proceed with Construction
Activities Pending Rehearing, 175 FERC ] 61,098 (2021) (Danly,
Comm'r, dissenting at P 2) (Order No. 871-B).
\3\ See id. (Danly, Comm'r, dissenting at PP 3, 6-14).
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I. The Presumptive Stay Is Beyond the Commission's Authority and
Contrary to the Plain Text of the Natural Gas Act
2. In today's order, the majority states ``the Commission's
underlying authority derives from NGA section 16.'' \4\ Specifically,
the majority relies on the provisions providing the Commission
authority ``to perform any and all acts . . . necessary or appropriate
to carry out the provisions of this [Act]'' and to determine the
effective date of its orders.\5\ Like many before it, the majority has
turned to NGA section 16 when all else has failed, placing more weight
upon this section than it can reasonably bear. NGA section 16 ``do[es]
not confer independent authority to act.'' \6\ It is ``of an
implementary rather than substantive character'' and ``can only be
implemented `consistently with the provisions and purposes of the
legislation.\7\' '' The majority, however, fails to confront this
limitation on section 16's reach and employs this provision in a manner
that contravenes the NGA in three respects.
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\4\ Order No. 871-C, 176 FERC ] 61,062 at P 36.
\5\ Id. (quoting 15 U.S.C. 717o).
\6\ New England Power Co. v. Fed. Power Comm'n, 467 F.2d 425,
431 (D.C. Cir. 1972), aff'd, 415 U.S. 345 (1974).
\7\ Id. at 430 (citation omitted).
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3. First, the majority's policy denies pipelines holding
certificates the ability to exercise eminent domain for up to 150
days--doing exactly what the majority explicitly concedes it cannot do:
``restrict the power of eminent domain in a section 7 certificate.''
\8\ NGA section 7(h) authorizes ``any holder of a certificate'' to
exercise eminent domain authority.\9\ Other than the issuance of a
certificate, Congress ordained no other condition be met in advance of
a pipeline pursuing eminent domain. The Commission can only employ NGA
section 16 in a manner consistent with the other provisions of the act.
Here, the use of section 16 is in direct in conflict with the statute--
and the majority does not see fit to argue otherwise.
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\8\ Order No. 871-B, 175 FERC ] 61,098 at P 45 (citation
omitted). Indeed, Order No. 871-B quotes the Berkley v. Mountain
Valley Pipeline, LLC, as stating, ``FERC does not have discretion to
withhold eminent domain once it grants a Certificate.'' Id. P 45
n.86 (quoting Berkley v. Mountain Valley Pipeline, LLC, 896 F.3d
624, 628 (4th Cir. 2018)) (emphasis added).
\9\ 15 U.S.C. 717f(h) (emphasis added).
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4. Second, presumptively staying a pipeline's ability to pursue
eminent domain is not appropriate under section 16 because such a delay
is not a ``necessary or appropriate'' adjunct to the Commission's
effectuation of its responsibilities under section 7 of the NGA. That
section requires the Commission to issue certificates to applicants
whose proposed natural gas facilities are found to be in the public
convenience and necessity. The timing of a pipeline's use of eminent
domain does not weigh into the Commission's determination of whether
proposed pipeline facilities are in the public convenience and
necessity. If it did, the majority would rely on the Commission's
authority under NGA section 7(e) to ``attach to the issuance of the
certificate . . . such reasonable terms and conditions as the public
convenience and necessity may require.'' \10\ The majority, however,
does not.\11\ Nor does the majority cite any other provision of the NGA
for which the Commission's action would be ``necessary or appropriate''
under section 16.
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\10\ 15 U.S.C. 717f(e).
\11\ See Order No. 871-B, 175 FERC ] 61,098 at P 45 (``In other
words, the Commission lacks the authority to deny or restrict the
power of eminent domain in a section 7 certificate.'') (citation
omitted).
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5. Third, the only reasonable reading of NGA section 7 leads to the
conclusion that Congress intended for certificates to be effective upon
issuance and acceptance, and for the right to exercise eminent domain
to attach thereupon. NGA section 7(e) provides, ``a certificate shall
be issued'' so long as the applicant is ``able and willing properly to
do the acts . . . .'' \12\ Further, NGA section 7(h) authorizes ``any
holder of a certificate of public convenience and necessity'' to
acquire by eminent domain the land necessary for the construction,
operation, and maintenance of its pipeline facilities.\13\ Black's Law
Dictionary defines ``holder'' as ``[a] person with legal possession of
a document of title or an investment security,'' meaning that the title
was issued and accepted by that person.\14\ This view has been shared
by the
[[Page 43086]]
courts \15\ and the Commission.\16\ This is not to say that the
Commission can never make a certificate effective after its issuance or
stay a certificate order. Both may be warranted in certain instances.
In my view, however, it is contrary to the purpose of the NGA to adopt
a policy that presumptively stays certificates for the avowed purpose
of delaying a pipeline's Congressionally-authorized entitlement to
exercise eminent domain.\17\
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\12\ 15 U.S.C. 717f(e) (emphasis added).
\13\ Id. Sec. 717f(h) (emphasis added).
\14\ Holder, Black's Law Dictionary (11th ed. 2019).
\15\ See Maritimes & Ne. Pipeline, L.L.C. v. Decoulos, 146 F.
App'x 495, 498 (1st Cir. 2005) (``Once a CPCN is issued by the FERC,
and the gas company is unable to acquire the needed land by contract
or agreement with the owner, the only issue before the district
court in the ensuing eminent domain proceeding is the amount to be
paid to the property owner as just compensation for the taking.'')
(emphasis added); E. Tenn. Nat. Gas Co. v. Sage, 361 F.3d 808, 818
(4th Cir. 2004) (``Once FERC has issued a certificate, the NGA
empowers the certificate holder to exercise `the right of eminent
domain' over any lands needed for the project.'') (emphasis added);
Bohon v. FERC, No. 20-6 (JEB), slip op. at 2 (D.D.C. May 6, 2020)
(``FERC's issuance of a certificate, moreover, conveys the power of
eminent domain to its holder.'') (emphasis added); Paul H. Stitt &
Loretta Stitt, 39 F.P.C. 323, 324 (1968) (``While the condemnation
powers granted to certificate holders by Section 7(h) of the Natural
Gas Act operate prospectively from the date of issuance of a
certificate . . . .'') (emphasis added).
\16\ See 18 CFR 157.20(a) (2020) (``The certificate shall be
void and without force or effect unless accepted in writing by
applicant . . . .'').
\17\ This is and separate apart from the argument that I raised
in my earlier dissent that NGA section 19(c), while allowing for
stays, requires a specific order by the Commission. Order No. 871-B,
175 FERC ] 61,098 (Danly, Comm'r, dissenting at PP 8-10; see also 15
U.S.C. 717r(c) (``The filing of an application for rehearing under
subsection (a) shall not, unless specifically ordered by the
Commission, operate as a stay of the Commission's order.'').
Clearly, an automatically-applied presumption is not a specific
order and thus violates the unambiguous terms of the statute.
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6. In addition to NGA section 16, the majority appears to place
some reliance on APA section 705, which provides ``[w]hen an agency
finds that justice so requires, it may postpone the effective date of
action taken by it, pending judicial review.'' \18\ I presume this is
the case because the majority responds to arguments raised by the
Interstate Natural Gas Association of America (INGAA) that the phrase
``pending judicial review'' in APA section 705 means an agency stay
must be ``tied to litigation.'' \19\ The majority asserts that a more
reasonable interpretation of the phrase ``pending judicial review'' is
``in anticipation of [judicial review].'' \20\ I've found no court that
supports that position and multiple courts, in fact, disagree.\21\
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\18\ 5 U.S.C. 705.
\19\ Order No. 871-C, 176 FERC ] 61, 61,062 at P 37, n.82
(citing INGAA Rehearing at 33).
\20\ Id. P 37.
\21\ Nat. Res. Def. Council v. U.S. Dep't of Energy, 362 F.
Supp. 3d 126, 150 (S.D.N.Y. 2019) (``A stay is supposed to be
grounded on `the existence or consequences of the pending
litigation.' ''); Bauer v. DeVos, 325 F. Supp. 3d 74, 106 (D.D.C.
2018) (``Most significantly, the relevant equitable considerations
are not free-floating but, rather, must be tied to the underlying
litigation. Section 705 expressly provides that an agency may
'postpone the effective date of [agency] action . . . pending
judicial review.' '') (emphasis in original); Sierra Club v.
Jackson, 833 F. Supp. 2d 11, 34 (D.D.C. 2012) (``Where, as in this
case, [an agency] seeks to justify a stay of its rules `pending
judicial review,' the agency must have articulated, at a minimum, a
rational connection between its stay and the underlying litigation
in the court of appeals.'').
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II. Presumptive Stay Is Not Based on Reasoned Decision Making
7. To the extent the majority merely argues that it can apply the
three factors of the equitable standard set forth in APA section 705 to
determine whether a stay is warranted, I agree. However, the majority's
application of the equitable standard is not based on reasoned decision
making, and thus violates the APA.\22\
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\22\ Motor Vehicle Mfrs. Ass'n of U.S., Inc. v. State Farm Mut.
Auto. Ins. Co., 463 U.S. 29, 30 (1983). See also Elec. Consumers
Res. Council v. FERC, 747 F.2d 1511, 1513-14 (D.C. Cir. 1984) (``We
defer to the agency's expertise . . . so long as its decision is
supported by `substantial evidence' in the record and reached by
`reasoned decision-making,' including an examination of the relevant
data and a reasoned explanation supported by a stated connection
between the facts found and the choice made.'') (citing Burlington
Truck Lines v. United States, 371 U.S. 156, 168 (1962); Memphis
Light, Gas & Water Div. v. FPC, 504 F.2d 225, 230 (D.C. Cir. 1974);
16 U.S.C. 825l (1982)).
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8. As I stated in my dissent to Order No. 871-B, the majority's
assumption that the mere existence of a ``landowner protest''
automatically means a stay is required in the interest of justice is--
at best--questionable.\23\ This represents a broad category of
litigant, whose mere participation in a proceeding would temporarily
extinguish a certificate holder's Congressionally-established rights.
Surely, the Commission should at least impose rational limits on the
rule they are establishing. For example, will the Commission stay a
certificate where there is a protest by a landowner with property
interests that abut the proposed right-of-way but are not subject to
condemnation? And the Commission's policy applies to where there is a
``landowner protest.'' Will the Commission apply the stay where a
landowner protested but did not intervene and thus cannot seek
rehearing or judicial review? What about in the case where the
landowner joined a protest, but may not have active interests in the
proceeding?
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\23\ Order No. 871-B, 175 FERC ] 61,098 (Danly, Comm'r,
dissenting at P 8).
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9. The majority also fails to consider the second factor ``whether
issuing a stay may substantially harm other parties.'' Will the
Commission stay a certificate where the proposed project is delivering
natural gas to municipalities that need the gas within six months of
certificate issuance? Will the Commission stay a certificate if the
delay caused by its stay would cause an additional year's delay in
construction because of seasonal restrictions? To what degree will the
financial consequences for the project proponent be considered? What
about the consequences to the pipeline's customers? It is not
inconceivable that those projects whose applications have been pending
for more than a year ultimately will be canceled as a result of
delay.\24\ How can the potential cancellation of a project that has
been determined by the Commission to be in the public interest itself
be in the public interest or, under the second factor, be found not to
``substantially harm other parties''?
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\24\ See id. (Danly, Comm'r, dissenting at P 14) (noting
Dominion Energy Transmission, Inc. withdrew its application for a
certificate for its Sweden Valley Project that it had filed
seventeen months prior).
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III. Conclusion
10. The power of eminent domain is surely profound and formidable.
I cannot fault my colleagues for the anxiety they have expressed
regarding its wise and just exercise. However, the Commission, as a
mere ``creature of statute,'' can only act pursuant to law by which
Congress has delegated its authority.\25\ Congress conferred the right
to certificate holders to pursue eminent domain in federal district
court or state court,\26\ having recognized that states ``defeat[] the
very objectives of the Natural Gas Act'' \27\ by conditioning or
withholding the exercise of eminent domain. Congress has made that
determination. It has codified it into law. The Commission, as an
executive agency, is empowered only to implement Congressional mandate,
not to second-guess Congressional wisdom or attempt to do indirectly
what it cannot directly.\28\
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\25\ Atl. City Elec. Co. v. FERC, 295 F.3d 1, 8 (D.C. Cir. 2002)
(``As a federal agency, FERC is a 'creature of statute,' having `no
constitutional or common law existence or authority, but only those
authorities conferred upon it by Congress.''') (quoting Michigan v.
EPA, 268 F.3d 1075, 1081 (D.C. Cir. 2001)) (emphasis in original);
see Bowen v. Georgetown Univ. Hosp., 488 U.S. 204, 208 (1988) (``It
is axiomatic that an administrative agency's power to promulgate
legislative regulations is limited to the authority delegated by
Congress.'').
\26\ See 15 U.S.C. 717f(h).
\27\ S. Rep. No. 80-429, at 3 (1947).
\28\ Richmond Power & Light v. FERC, 574 F.2d 610, 620 (D.C.
Cir. 1978) (``What the Commission is prohibited from doing directly
it may not achieve by indirection.'').
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11. Despite this, I doubt that the Commission's arguments will be
[[Page 43087]]
presented to the courts. It will be challenging for those that are
harmed by the issuance of a generally-applicable policy to show
aggrievement before it is actually applied in a case. And by the time
those harmed are able seek review, the damage of the stay will have
been done and the stay will have been lifted. My pessimistic outlook is
that despite this order's obvious infirmities, the Commission will
avoid judicial scrutiny and thereby thwart the intent of Congress.
For these reasons, I respectfully dissent.
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James P. Danly,
Commissioner.
[FR Doc. 2021-16812 Filed 8-5-21; 8:45 am]
BILLING CODE 6717-01-P