Project-Area Wage Standards in the Labor Cost Component of Cost-of-Service Rates, 73833-73836 [2023-23590]
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Federal Register / Vol. 88, No. 207 / Friday, October 27, 2023 / Notices
activities, the CSSF at closure will meet
the above criteria. DOE is predicating
this Draft CSSF 3116 Basis Document on
extensive analysis and scientific
rationale, using a risk-informed
approach, including analyses presented
in the Performance Assessment and
Composite Analysis for the INTEC
Calcined Solids Storage Facility at the
INL Site (CSSF PA/CA).
Specifically, this Draft CSSF 3116
Basis Document shows that the CSSF
bins (including integral equipment),
transport lines, and any residual waste
at the time of closure does not require
permanent isolation in a deep geologic
repository for spent fuel or HLW, and
that the highly radioactive
radionuclides (those radionuclides
which contribute most significantly to
radiological dose to workers, the public,
and the environment as well as
radionuclides listed in 10 CFR 61.55)
will have been removed to the
maximum extent practical. As also
shown in the Draft CSSF 3116 Basis
Document, the stabilized (grouted) CSSF
stainless-steel bins (including integral
equipment), transport lines, and any
residual waste at CSSF closure will not
exceed concentration limits for Class C
LLW. Based on the analyses in the CSSF
PA/CA, this Draft CSSF 3116 Basis
Document projects that potential doses
to a hypothetical member of the public
and hypothetical inadvertent intruder
after CSSF closure will be well below
the doses specified in the performance
objectives for disposal of LLW.
Furthermore, the CSSF closure will be
performed pursuant to a State-approved
closure plan.
DOE is consulting with the NRC on
this Draft CSSF 3116 Basis Document
and also making the Draft CSSF 3116
Basis Document available for comments
from states, Tribal Nations,
stakeholders, and the public. After
consultation with the NRC, carefully
considering comments received, and
performing any necessary revisions of
analyses and technical documents, DOE
plans to issue a Final CSSF 3116 Basis
Document. Based on the Final CSSF
3116 Basis Document, the Secretary of
Energy, in consultation with the NRC,
may determine in the future whether the
CSSF bins (including integral
equipment), transport lines, and any
residual waste therein are non-HLW,
and may be disposed in place as LLW.
Signing Authority
This document of the Department of
Energy was signed on October 20, 2023,
by Kristen Ellis, Acting Associate
Principal Deputy Assistant Secretary for
Regulatory and Policy Affairs, pursuant
to delegated authority from the
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17:44 Oct 26, 2023
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Secretary of Energy. That document
with the original signature and date is
maintained by DOE. For administrative
purposes only, and in compliance with
requirements of the Office of the Federal
Register, the undersigned DOE Federal
Register Liaison Officer has been
authorized to sign and submit the
document in electronic format for
publication, as an official document of
the Department of Energy. This
administrative process in no way alters
the legal effect of this document upon
publication in the Federal Register.
Signed in Washington, DC, on October 24,
2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S.
Department of Energy.
[FR Doc. 2023–23761 Filed 10–26–23; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
[Docket No. PL24–1–000]
Project-Area Wage Standards in the
Labor Cost Component of Cost-ofService Rates
Federal Energy Regulatory
Commission, Department of Energy.
ACTION: Proposed policy statement.
AGENCY:
The Federal Energy
Regulatory Commission (Commission)
proposes to clarify how the Commission
will treat the use of project-area wage
standards in calculating the labor cost
component of jurisdictional cost-ofservice rates.
DATES: Comments on this proposed
policy statement are due on or before
December 26, 2023.
ADDRESSES: Comments, identified by
docket number, may be filed in the
following ways. Electronic filing
through https://www.ferc.gov, is
preferred.
• Electronic Filing: Documents must
be filed in acceptable native
applications and print-to-PDF, but not
in scanned or picture format.
• For those unable to file
electronically, comments may be filed
by USPS mail or by hand (including
courier) delivery.
Æ Mail via U.S. Postal Service Only:
Addressed to: Federal Energy
Regulatory Commission, Secretary of the
Commission, 888 First Street, NE,
Washington, DC 20426.
Æ Hand (including courier) delivery:
Deliver to: Federal Energy Regulatory
Commission, 12225 Wilkins Avenue,
Rockville, MD 20852.
SUMMARY:
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The Comment Procedures Section of
this document contains more detailed
filing procedures.
FOR FURTHER INFORMATION CONTACT:
Heidi Nielsen (Legal Information),
Office of the General Counsel, (202)
502–8435, heidi.nielsen@ferc.gov.
Adam Pollock (Technical
Information), Office of Energy Market
Regulation, (202) 502–8458,
adam.pollock@ferc.gov.
James Sarikas (Technical
Information), Office of Energy Market
Regulation, (202) 502–6831,
james.sarikas@ferc.gov.
SUPPLEMENTARY INFORMATION:
I. Proposal
1. In this proposed policy statement,
we clarify how the Commission will
treat the use of project-area wage
standards in calculating the labor cost
component of cost-of-service rates,
including under Natural Gas Act (NGA)
sections 4, 5, and 7, 15 U.S.C. 717c–d,
717f; the Interstate Commerce Act (ICA),
49 U.S.C. app. 1(5)(a); and Federal
Power Act (FPA) sections 205 and 206,
16 U.S.C. 824d–e.1
2. Project-area wage standards are the
prevailing wages set by labor markets in
the locale where the associated project
work (e.g., construction, capital repairs,
decommissioning) is performed. They
can be found in data sources that
indicate the basic hourly wage rates and
fringe benefit rates for labor, direct
employees and/or contract personnel
that prevail in a predetermined
geographic area. For example, under the
Davis-Bacon Act, the U.S. Department of
Labor issues prevailing wage
determinations based on periodic
surveys of union and non-union wages
paid in a particular location, which
serve as the minimum wage that must
be paid by contractors and
subcontractors performing under certain
federally funded or assisted
construction contracts.2 A number of
states have enacted their own prevailing
wage laws, sometimes referred to as
‘‘Little Davis-Bacon’’ laws.3
1 While most interstate oil pipelines have marketbased or indexed rates, some jurisdictional
pipelines have cost-of-service rates on file with the
Commission.
2 ‘‘By requiring the payment of minimum
prevailing wages, Congress sought to ‘ensure that
Government construction and federally assisted
construction would not be conducted at the
expense of depressing local wage standards.’ ’’ Dep’t
of Labor, Updating the Davis-Bacon & Related Acts
Reguls., 88 FR 57526, 57526 (Aug. 23, 2023) (citing
Determination of Wage Rates Under the DavisBacon & Serv. Cont. Acts 5 Op. O.LC. 174, 176
(1981)) (Final Rule).
3 Dep’t of Labor, Dollar Threshold Amount for
Contract Coverage under State Prevailing Wage
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3. The Commission addressed the
treatment of project-area wage rates in
the cost component of natural gas
pipeline cost-of-service rates in Opinion
Nos. 510 and 524.4 In Opinion No. 510,
the Commission rejected a pipeline
operator’s proposal to use union-only
wage rates from a single proxy location
to estimate the labor cost of
decommissioning its pipeline that
spanned four states,5 finding that the
pipeline operator had not carried its
burden under section 4 of the NGA to
show that it would use union labor and
that, based on the evidence in that
proceeding, it was accordingly
reasonable to estimate labor costs using
a ‘‘blended’’ mix of average union and
non-union wage rates in the general
private construction industry in the
states where the pipeline was located,
‘‘weighted’’ by the length of pipe in
each state.6 The Commission
subsequently applied the same
approach in Opinion No. 524, finding
that the same operator had again failed
to present sufficient supporting
evidence for its proposal to use uniononly wage rates in its estimate of
decommissioning labor costs.7
4. In this proposed policy statement,
we clarify that those decisions were
based on the record evidence before the
Commission in those proceedings and
do not reflect a heightened standard of
review with respect to project-area wage
rates. Under this proposal, jurisdictional
entities may include wages consistent
with project-area wage standards in
cost-of-service rates filed with the
Commission where the record supports
that outcome, as discussed below.
5. Specifically, we propose that, when
a Commission-jurisdictional entity
presents evidence that it: (1) pays
project-area wage standards, or (2) is
contractually obligated to pay projectarea wage standards, or (3) commits via
affidavit 8 filed in the rate proceeding
Laws (Jan. 1, 2023), https://www.dol.gov/agencies/
whd/state/prevailing-wages.
4 Portland Nat. Gas Transmission Sys., Opinion
No. 510, 134 FERC ¶ 61,129 (2011), reh’g in part,
142 FERC ¶ 61,198 (2013), reh’g dismissed, 150
FERC ¶ 61,106 (2015); Portland Nat. Gas
Transmission Sys., Opinion No. 524, 142 FERC
¶ 61,197 (2013), reh’g denied, 150 FERC ¶ 61,107
(2015). Among other things, these proceedings
involved estimating the expected costs for future
pipeline retirements, specifically, determining the
labor component for decommissioning costs to be
recovered by a pipeline operator, Portland Natural
Gas Transmission System.
5 Opinion No. 510, 134 FERC ¶ 61,129 at P 124.
6 Id.
7 Opinion No. 524, 142 FERC ¶ 61,197 at PP 162–
64.
8 We remind filers that all information submitted
in cost-of-service filings must be truthful and
accurate, see 18 CFR 35.13(d)(6) (‘‘A utility shall
include in its filing an attestation . . . that . . . the
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that it will pay project-area wage
standards, the Commission will
presume, absent contrary evidence, that
such project-area wage standards are
just and reasonable for the relevant
labor-cost component.9 Furthermore, we
propose that the Commission will reject
the inclusion of labor wages consistent
with project-area wage standards in
cost-of-service rates when the evidence
demonstrates that the jurisdictional
entity has not paid or will not be paying
labor wages consistent with project-area
wage standards.
6. We propose that the Commission
will accept as sources of project-area
wage standards: (1) Davis-Bacon Act
local prevailing wage determinations; 10
(2) state prevailing wage
determinations; 11 (3) applicable
collective-bargaining agreements or
Project Labor Agreements; 12 or (4) other
evidence demonstrating the prevailing
wages paid in the relevant locale(s),
such as an industry-accepted database
used in construction cost estimates. The
Commission seeks comment on the
appropriateness of the four proposed
sources of project-area wage standards.
In particular, we seek comment on the
appropriateness of using industry
cost of service statements and supporting data
submitted . . . are true, accurate, and current
representations of the utility’s books, budgets, or
other corporate documents.’’), 154.308 (‘‘The filing
must include a statement . . . representing that the
cost statements, supporting data, and workpapers,
that purport to reflect the books of the company do,
in fact, set forth the results shown by such books.’’),
341.1(b)(1) (‘‘The signature on a filing constitutes a
certification that the contents are true to the best
knowledge and belief of the signer . . . .’’), and
that failure to meet this requirement may result in
a referral to the Office of Enforcement for further
investigation and action, as appropriate.
9 Consistent with 48 CFR 22.401, this proposed
policy statement applies to employee or contract
labor whose duties are primarily manual or
physical in nature, as distinguished from mental or
managerial, and does not apply to employees or
contractors whose duties are primarily executive,
supervisory, administrative, or clerical. For
purposes of this proposed policy statement,
‘‘wages’’ means the basic hourly pay rate including
fringe benefits, as more fully defined in 48 CFR
22.401.
10 Pursuant to the Davis-Bacon Act, as amended
and codified at 40 U.S.C. 3141(2), the term
‘‘prevailing wages’’ includes the basic hourly rate
of pay and fringe benefits, as determined by the
Department of Labor. See Final Rule, 88 FR at
57526 (citing 40 U.S.C. 3142, 3145), 57531, 57546,
57699, 57722–724.
11 The applicable state prevailing wage
determination should meet or exceed the DavisBacon Act local prevailing wage determinations.
12 Project Labor Agreements are agreements
between building trade unions and contractors.
They govern terms and conditions of employment
(including wage-related issues) on a construction
project for all craft workers—union and nonunion.
Dep’t of Labor, Project Labor Agreement Res. Guide,
Project Labor, Cmty. Workforce, & Cmty. Benefits
Agreements Res. Guide, ¶ 1, https://www.dol.gov/
general/good-jobs/project-labor-agreementresource-guide.
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databases with construction cost
estimates as a source of project-area
wage standards as well as whether any
project-area wage standards might not
be captured in the first three listed
categories.
7. We further propose that
jurisdictional entities seeking to include
project-area wage standards in cost-ofservice rates should maintain and
preserve records, including books of
account or records for work performed
by employees, contractors or
subcontractors, sufficient to
demonstrate that claimed project-area
wages were actually paid.13
II. Comment Procedures
8. The Commission invites comments
on this proposed policy statement on or
before December 26, 2023. Comments
must refer to Docket No. PL24–1–000
and must include the commenter’s
name, the organization they represent, if
applicable, and their address in their
comments. All comments will be placed
in the Commission’s public files and
may be viewed, printed, or downloaded
remotely as described in the Document
Availability section below. Commenters
on this proposal are not required to
serve copies of their comments on other
commenters.
9. The Commission encourages
comments to be filed electronically via
the eFiling link on the Commission’s
website at https://www.ferc.gov. The
Commission accepts most standard
word processing formats. Documents
created electronically using word
processing software must be filed in
native applications or print-to-PDF
format and not in a scanned format.
Commenters filing electronically do not
need to make a paper filing.
10. Commenters that are not able to
file comments electronically may file an
original of their comment by USPS mail
or by courier-or other delivery services.
For submission sent via USPS only,
filings should be mailed to: Federal
Energy Regulatory Commission, Office
of the Secretary, 888 First Street NE,
Washington, DC 20426. Submission of
filings other than by USPS should be
delivered to: Federal Energy Regulatory
Commission, 12225 Wilkins Avenue,
Rockville, MD 20852.
III. Information Collection Statement
11. The Paperwork Reduction Act and
the implementing regulations of the
Office of Management and Budget
(OMB) 14 require approval of certain
information collection requirements
imposed by an agency. Upon approval
13 See
14 5
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supra note 8.
CFR 1320.
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of a collection of information, OMB will
assign an OMB Control Number and an
expiration date. Respondents subject to
the filing requirements will not be
penalized for failing to respond to the
collection of information unless the
collection of information displays a
valid OMB control number.
12. This proposed policy statement
clarifies how the Commission will treat
the use of project-area wage standards in
calculating the labor cost component of
jurisdictional cost-of-service rates filed
by a natural-gas company, interstate oil
pipeline, or public utility, pursuant to
NGA sections 4, 5 and 7, 15 U.S.C.
717c–d, 717f; ICA, 49 U.S.C. app.
1(5)(a); and FPA sections 205 and 206,
16 U.S.C. 824d–e, respectively.
13. The Commission is submitting
these reporting requirements to OMB for
its review and approval under section
3507(d) of the Paperwork Reduction
Act. Comments are solicited on whether
the information will have practical
utility, the accuracy of provided burden
estimates, ways to enhance the quality,
utility, and clarity of the information to
be collected, and any suggested methods
for minimizing the respondent’s burden,
including the use of automated
information techniques.
14. Please submit your comments
(identified by Docket No. PL24–1–000)
by either of the following methods: (1)
eFiling at Commission’s website:
https://www.ferc.gov/docs-filing/
efiling.asp or (2) Mail/Hand Delivery/
Courier: Federal Energy Regulatory
Commission, Secretary of the
Commission, at Health and Human
Services, 12225 Wilkins Avenue,
Rockville, Maryland 20852. All
submissions must be formatted and filed
in accordance with submission
guidelines at: https://www.ferc.gov/
help/submission-guide.asp. For user
assistance, contact FERC Online
Support by email at ferconlinesupport@
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17:44 Oct 26, 2023
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ferc.gov, or by phone at: (866) 208–3676
(toll-free).
15. Collection Nos., Titles and OMB
Control Nos.: FERC–516 (Electric Rate
Schedules and Tariff Filings, OMB
Control No. 1902–0096); FERC–537 (Gas
Pipeline Certificates: Construction,
Acquisition and Abandonment; OMB
Control No. 1902–0060); FERC–538 (Gas
Pipeline Certificates: Section 7(a)
Mandatory Initial Service, OMB Control
No. 1902–0061); FERC–545 (Gas
Pipeline Rates: Rate Change (Nonformal), OMB Control No. 1902–0154);
FERC–546 (Certificated Rate Filings: Gas
Pipeline Rates, OMB Control No. 1902–
0155); FERC–550 (Oil Pipeline Rates—
Tariff Filings and Depreciation Studies,
OMB Control No. 1902–0089); FERC–
555 (Preservation of Records for Public
Utilities and Licensees, Natural Gas and
Oil Pipeline Companies, OMB Control
No. 1902–0098).
16. Action: Proposed modifications to
collections of information in accordance
with the proposed policy statement.
17. Respondents: The estimate of the
number of respondents that may elect to
use project-area wage standards in
calculating the labor cost component of
cost-of-service rates is based upon the
existing burden inventory currently
approved by OMB for filing rates cases,
depreciation studies and certificate
filings, include initial rates or seeking
approval to charge existing rates for
natural gas companies, public utilities
and oil pipelines. This burden estimate
is based upon one-third of the filings
electing to include an additional burden
by the filer to incorporate labor costs
based upon paying wages that at
minimum meet project-area wage
standards.
18. Frequency of Information
Collection: Utilities, when including
elements in rates reflecting future
capital costs, may elect to make the
above showings in support of wages that
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73835
are at or above project-area wage
standards. Such proceedings may
include but are not limited to
certificates for new natural gas
pipelines, general natural gas pipeline
and electric utility rate cases, proposed
new or modified depreciation rates, and
proposed inclusion of asset retirement
obligation in rates. In total, utilities may
make such a showing one time per year.
19. Necessity of Information: The
information would be necessary for the
utility to receive the presumption that
wages for capital projects that are at or
above project-area wage standards are
not just and reasonable.
20. Internal Review: The Commission
has reviewed the proposed changes and
has determined that such changes are
necessary. These requirements conform
to the Commission’s need for efficient
information collection, communication,
and management within the energy
industry in support of the Commission’s
ensuring just and reasonable rates. The
Commission has specific, objective
support for the burden estimates
associated with the information
collection requirements. However, we
request comments with supporting
background information on the
estimates for burden and cost.
21. The Commission estimates the
effect of the proposed policy statement
on burden 15 and cost 16 as follows:
15 ‘‘Burden’’ is the total time, effort, or financial
resources expended by persons to generate,
maintain, retain, or disclose or provide information
to or for a Federal agency. For further explanation
of what is included in the estimated burden, refer
to 5 CFR 1320.3.
16 Commission staff estimates that the
respondents’ skill set (and wages and benefits) for
this docket are comparable to those of Commission
employees. Based on the Commission’s Fiscal Year
2023 average cost of $199,867/year (for wages plus
benefits, for one full-time employee), $96.00/hour is
used.
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Federal Register / Vol. 88, No. 207 / Friday, October 27, 2023 / Notices
ESTIMATES OF THE EFFECTS DUE TO THE PROPOSED POLICY STATEMENT IN DOCKET NO. PL24–1–000
A. Information collection
B. Number of
respondents
D. Total
number of
responses
(column B ×
column C)
C. Annual
number of
responses per
respondent
E. Average
burden hrs. &
cost per
response
F. Total annual hr.
burdens & total
annual cost
(column D × column
E)
15 hrs. $1,440 .......
15 hrs. $1,440 .......
15 hrs. $1,440 .......
1 hr. $96 ................
330 hrs. $31,680 ...
90 hrs. $8,640 .......
165 hrs. $15,840 ...
170 hrs. $16,320 ...
$1,440
1,440
1,440
96
G. Cost per
respondent
(column F ÷
column B)
FERC–1006 17
FERC–537
FERC 516
FERC 545
FERC 555
...............................
...............................
...............................
...............................
22
6
11
170
1
1
1
1
22
6
11
170
Other Affected Collections
FERC–538 ...............................
FERC–546 ...............................
FERC–550 ...............................
1
16
7
1
1
1
1
16
7
15 hrs. $1,440 .......
15 hrs. $1,440 .......
15 hrs. $1,440 .......
15 hrs. $1,440 .......
240 hrs. $23,040 ...
105 hrs. $10,080 ...
1,440
1,440
1,440
Total Effect of the Proposed Policy Statement.
........................
........................
233
................................
1,115 hrs. $107,040
........................
IV. Document Availability
DEPARTMENT OF ENERGY
22. 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).
23. 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 of this document in the
docket number field.
24. User assistance is available for
eLibrary and the Commission’s website
during normal business hours from the
Commission’s 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.
Federal Energy Regulatory
Commission
ddrumheller on DSK120RN23PROD with NOTICES1
By direction of the Commission.
Issued: October 19, 2023.
Kimberly D. Bose,
Secretary.
[FR Doc. 2023–23590 Filed 10–26–23; 8:45 am]
BILLING CODE 6717–01–P
17 The FERC 1006 is a new temporary collection
number that includes the burden changes due to the
proposed policy statement in the FERC–545, –537,
–516, and –555, which are pending at OMB for
unrelated purposes.
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17:44 Oct 26, 2023
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[Docket No. CP24–5–000]
Columbia Gas Transmission, LLC;
Notice of Request Under Blanket
Authorization and Establishing
Intervention and Protest Deadline
Take notice that on October 13, 2023,
Columbia Gas Transmission (Columbia),
700 Louisiana Street, Suite 1300,
Houston, Texas 77002–2700, filed in the
above referenced docket, a prior notice
request pursuant to sections 157.208
and 157.216 of the Commission’s
regulations under the Natural Gas Act
(NGA), and Columbia’s blanket
certificate issued in Docket No. CP83–
76–000, for authorization to abandon
and replace sections of its existing
SR538 pipeline, abandon its existing
SR424 pipeline, install a bi-directional
launching and receiving station for inline inspection devices, and perform
other related appurtenant activities. All
of the above facilities are located in
Hocking County, Ohio (SR538 Pipeline
Replacement Project). The project will
allow Columbia to conduct in-line
inspection, or pigging, of Line SR538 to
ensure compliance with DOT
requirements for inspections of pipeline
systems. The estimated cost for the
project is $24.7 million, all as more fully
set forth in the request which is on file
with the Commission and open to
public inspection.
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
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Commission’s Home Page
(www.ferc.gov) using the ‘‘eLibrary’’
link. Enter the docket number excluding
the last three digits in the docket
number field to access the document. At
this time, the Commission has
suspended access to the Commission’s
Public Reference Room. For assistance,
contact the Federal Energy Regulatory
Commission at FercOnlineSupport@
ferc.gov or call toll-free, (886) 208–3676
or TTY (202) 502–8659.
Any questions concerning this request
should be directed to David A. Alonzo,
700 Louisiana Street, Suite 1300,
Houston, Texas 77002–2700 at (832)
320–5477 or email at david_alonzo@
tcenergy.com.
Public Participation
There are three ways to become
involved in the Commission’s review of
this project: you can file a protest to the
project, you can file a motion to
intervene in the proceeding, and you
can file comments on the project. There
is no fee or cost for filing protests,
motions to intervene, or comments. The
deadline for filing protests, motions to
intervene, and comments is 5 p.m.
Eastern Time on December 22, 2023.
How to file protests, motions to
intervene, and comments is explained
below.
The Commission’s Office of Public
Participation (OPP) supports meaningful
public engagement and participation in
Commission proceedings. OPP can help
members of the public, including
landowners, environmental justice
communities, Tribal members and
others, access publicly available
information and navigate Commission
processes. For public inquiries and
assistance with making filings such as
interventions, comments, or requests for
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]]>Agencies
[Federal Register Volume 88, Number 207 (Friday, October 27, 2023)]
[Notices]
[Pages 73833-73836]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-23590]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. PL24-1-000]
Project-Area Wage Standards in the Labor Cost Component of Cost-
of-Service Rates
AGENCY: Federal Energy Regulatory Commission, Department of Energy.
ACTION: Proposed policy statement.
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SUMMARY: The Federal Energy Regulatory Commission (Commission) proposes
to clarify how the Commission will treat the use of project-area wage
standards in calculating the labor cost component of jurisdictional
cost-of-service rates.
DATES: Comments on this proposed policy statement are due on or before
December 26, 2023.
ADDRESSES: Comments, identified by docket number, may be filed in the
following ways. Electronic filing through https://www.ferc.gov, is
preferred.
Electronic Filing: Documents must be filed in acceptable
native applications and print-to-PDF, but not in scanned or picture
format.
For those unable to file electronically, comments may be
filed by USPS mail or by hand (including courier) delivery.
[cir] Mail via U.S. Postal Service Only: Addressed to: Federal
Energy Regulatory Commission, Secretary of the Commission, 888 First
Street, NE, Washington, DC 20426.
[cir] Hand (including courier) delivery: Deliver to: Federal Energy
Regulatory Commission, 12225 Wilkins Avenue, Rockville, MD 20852.
The Comment Procedures Section of this document contains more
detailed filing procedures.
FOR FURTHER INFORMATION CONTACT:
Heidi Nielsen (Legal Information), Office of the General Counsel,
(202) 502-8435, [email protected].
Adam Pollock (Technical Information), Office of Energy Market
Regulation, (202) 502-8458, [email protected].
James Sarikas (Technical Information), Office of Energy Market
Regulation, (202) 502-6831, [email protected].
SUPPLEMENTARY INFORMATION:
I. Proposal
1. In this proposed policy statement, we clarify how the Commission
will treat the use of project-area wage standards in calculating the
labor cost component of cost-of-service rates, including under Natural
Gas Act (NGA) sections 4, 5, and 7, 15 U.S.C. 717c-d, 717f; the
Interstate Commerce Act (ICA), 49 U.S.C. app. 1(5)(a); and Federal
Power Act (FPA) sections 205 and 206, 16 U.S.C. 824d-e.\1\
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\1\ While most interstate oil pipelines have market-based or
indexed rates, some jurisdictional pipelines have cost-of-service
rates on file with the Commission.
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2. Project-area wage standards are the prevailing wages set by
labor markets in the locale where the associated project work (e.g.,
construction, capital repairs, decommissioning) is performed. They can
be found in data sources that indicate the basic hourly wage rates and
fringe benefit rates for labor, direct employees and/or contract
personnel that prevail in a predetermined geographic area. For example,
under the Davis-Bacon Act, the U.S. Department of Labor issues
prevailing wage determinations based on periodic surveys of union and
non-union wages paid in a particular location, which serve as the
minimum wage that must be paid by contractors and subcontractors
performing under certain federally funded or assisted construction
contracts.\2\ A number of states have enacted their own prevailing wage
laws, sometimes referred to as ``Little Davis-Bacon'' laws.\3\
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\2\ ``By requiring the payment of minimum prevailing wages,
Congress sought to `ensure that Government construction and
federally assisted construction would not be conducted at the
expense of depressing local wage standards.' '' Dep't of Labor,
Updating the Davis-Bacon & Related Acts Reguls., 88 FR 57526, 57526
(Aug. 23, 2023) (citing Determination of Wage Rates Under the Davis-
Bacon & Serv. Cont. Acts 5 Op. O.LC. 174, 176 (1981)) (Final Rule).
\3\ Dep't of Labor, Dollar Threshold Amount for Contract
Coverage under State Prevailing Wage Laws (Jan. 1, 2023), https://www.dol.gov/agencies/whd/state/prevailing-wages.
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[[Page 73834]]
3. The Commission addressed the treatment of project-area wage
rates in the cost component of natural gas pipeline cost-of-service
rates in Opinion Nos. 510 and 524.\4\ In Opinion No. 510, the
Commission rejected a pipeline operator's proposal to use union-only
wage rates from a single proxy location to estimate the labor cost of
decommissioning its pipeline that spanned four states,\5\ finding that
the pipeline operator had not carried its burden under section 4 of the
NGA to show that it would use union labor and that, based on the
evidence in that proceeding, it was accordingly reasonable to estimate
labor costs using a ``blended'' mix of average union and non-union wage
rates in the general private construction industry in the states where
the pipeline was located, ``weighted'' by the length of pipe in each
state.\6\ The Commission subsequently applied the same approach in
Opinion No. 524, finding that the same operator had again failed to
present sufficient supporting evidence for its proposal to use union-
only wage rates in its estimate of decommissioning labor costs.\7\
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\4\ Portland Nat. Gas Transmission Sys., Opinion No. 510, 134
FERC ] 61,129 (2011), reh'g in part, 142 FERC ] 61,198 (2013), reh'g
dismissed, 150 FERC ] 61,106 (2015); Portland Nat. Gas Transmission
Sys., Opinion No. 524, 142 FERC ] 61,197 (2013), reh'g denied, 150
FERC ] 61,107 (2015). Among other things, these proceedings involved
estimating the expected costs for future pipeline retirements,
specifically, determining the labor component for decommissioning
costs to be recovered by a pipeline operator, Portland Natural Gas
Transmission System.
\5\ Opinion No. 510, 134 FERC ] 61,129 at P 124.
\6\ Id.
\7\ Opinion No. 524, 142 FERC ] 61,197 at PP 162-64.
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4. In this proposed policy statement, we clarify that those
decisions were based on the record evidence before the Commission in
those proceedings and do not reflect a heightened standard of review
with respect to project-area wage rates. Under this proposal,
jurisdictional entities may include wages consistent with project-area
wage standards in cost-of-service rates filed with the Commission where
the record supports that outcome, as discussed below.
5. Specifically, we propose that, when a Commission-jurisdictional
entity presents evidence that it: (1) pays project-area wage standards,
or (2) is contractually obligated to pay project-area wage standards,
or (3) commits via affidavit \8\ filed in the rate proceeding that it
will pay project-area wage standards, the Commission will presume,
absent contrary evidence, that such project-area wage standards are
just and reasonable for the relevant labor-cost component.\9\
Furthermore, we propose that the Commission will reject the inclusion
of labor wages consistent with project-area wage standards in cost-of-
service rates when the evidence demonstrates that the jurisdictional
entity has not paid or will not be paying labor wages consistent with
project-area wage standards.
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\8\ We remind filers that all information submitted in cost-of-
service filings must be truthful and accurate, see 18 CFR
35.13(d)(6) (``A utility shall include in its filing an attestation
. . . that . . . the cost of service statements and supporting data
submitted . . . are true, accurate, and current representations of
the utility's books, budgets, or other corporate documents.''),
154.308 (``The filing must include a statement . . . representing
that the cost statements, supporting data, and workpapers, that
purport to reflect the books of the company do, in fact, set forth
the results shown by such books.''), 341.1(b)(1) (``The signature on
a filing constitutes a certification that the contents are true to
the best knowledge and belief of the signer . . . .''), and that
failure to meet this requirement may result in a referral to the
Office of Enforcement for further investigation and action, as
appropriate.
\9\ Consistent with 48 CFR 22.401, this proposed policy
statement applies to employee or contract labor whose duties are
primarily manual or physical in nature, as distinguished from mental
or managerial, and does not apply to employees or contractors whose
duties are primarily executive, supervisory, administrative, or
clerical. For purposes of this proposed policy statement, ``wages''
means the basic hourly pay rate including fringe benefits, as more
fully defined in 48 CFR 22.401.
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6. We propose that the Commission will accept as sources of
project-area wage standards: (1) Davis-Bacon Act local prevailing wage
determinations; \10\ (2) state prevailing wage determinations; \11\ (3)
applicable collective-bargaining agreements or Project Labor
Agreements; \12\ or (4) other evidence demonstrating the prevailing
wages paid in the relevant locale(s), such as an industry-accepted
database used in construction cost estimates. The Commission seeks
comment on the appropriateness of the four proposed sources of project-
area wage standards. In particular, we seek comment on the
appropriateness of using industry databases with construction cost
estimates as a source of project-area wage standards as well as whether
any project-area wage standards might not be captured in the first
three listed categories.
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\10\ Pursuant to the Davis-Bacon Act, as amended and codified at
40 U.S.C. 3141(2), the term ``prevailing wages'' includes the basic
hourly rate of pay and fringe benefits, as determined by the
Department of Labor. See Final Rule, 88 FR at 57526 (citing 40
U.S.C. 3142, 3145), 57531, 57546, 57699, 57722-724.
\11\ The applicable state prevailing wage determination should
meet or exceed the Davis-Bacon Act local prevailing wage
determinations.
\12\ Project Labor Agreements are agreements between building
trade unions and contractors. They govern terms and conditions of
employment (including wage-related issues) on a construction project
for all craft workers--union and nonunion. Dep't of Labor, Project
Labor Agreement Res. Guide, Project Labor, Cmty. Workforce, & Cmty.
Benefits Agreements Res. Guide, ] 1, https://www.dol.gov/general/good-jobs/project-labor-agreement-resource-guide.
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7. We further propose that jurisdictional entities seeking to
include project-area wage standards in cost-of-service rates should
maintain and preserve records, including books of account or records
for work performed by employees, contractors or subcontractors,
sufficient to demonstrate that claimed project-area wages were actually
paid.\13\
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\13\ See supra note 8.
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II. Comment Procedures
8. The Commission invites comments on this proposed policy
statement on or before December 26, 2023. Comments must refer to Docket
No. PL24-1-000 and must include the commenter's name, the organization
they represent, if applicable, and their address in their comments. All
comments will be placed in the Commission's public files and may be
viewed, printed, or downloaded remotely as described in the Document
Availability section below. Commenters on this proposal are not
required to serve copies of their comments on other commenters.
9. The Commission encourages comments to be filed electronically
via the eFiling link on the Commission's website at https://www.ferc.gov. The Commission accepts most standard word processing
formats. Documents created electronically using word processing
software must be filed in native applications or print-to-PDF format
and not in a scanned format. Commenters filing electronically do not
need to make a paper filing.
10. Commenters that are not able to file comments electronically
may file an original of their comment by USPS mail or by courier-or
other delivery services. For submission sent via USPS only, filings
should be mailed to: Federal Energy Regulatory Commission, Office of
the Secretary, 888 First Street NE, Washington, DC 20426. Submission of
filings other than by USPS should be delivered to: Federal Energy
Regulatory Commission, 12225 Wilkins Avenue, Rockville, MD 20852.
III. Information Collection Statement
11. The Paperwork Reduction Act and the implementing regulations of
the Office of Management and Budget (OMB) \14\ require approval of
certain information collection requirements imposed by an agency. Upon
approval
[[Page 73835]]
of a collection of information, OMB will assign an OMB Control Number
and an expiration date. Respondents subject to the filing requirements
will not be penalized for failing to respond to the collection of
information unless the collection of information displays a valid OMB
control number.
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\14\ 5 CFR 1320.
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12. This proposed policy statement clarifies how the Commission
will treat the use of project-area wage standards in calculating the
labor cost component of jurisdictional cost-of-service rates filed by a
natural-gas company, interstate oil pipeline, or public utility,
pursuant to NGA sections 4, 5 and 7, 15 U.S.C. 717c-d, 717f; ICA, 49
U.S.C. app. 1(5)(a); and FPA sections 205 and 206, 16 U.S.C. 824d-e,
respectively.
13. The Commission is submitting these reporting requirements to
OMB for its review and approval under section 3507(d) of the Paperwork
Reduction Act. Comments are solicited on whether the information will
have practical utility, the accuracy of provided burden estimates, ways
to enhance the quality, utility, and clarity of the information to be
collected, and any suggested methods for minimizing the respondent's
burden, including the use of automated information techniques.
14. Please submit your comments (identified by Docket No. PL24-1-
000) by either of the following methods: (1) eFiling at Commission's
website: https://www.ferc.gov/docs-filing/efiling.asp or (2) Mail/Hand
Delivery/Courier: Federal Energy Regulatory Commission, Secretary of
the Commission, at Health and Human Services, 12225 Wilkins Avenue,
Rockville, Maryland 20852. All submissions must be formatted and filed
in accordance with submission guidelines at: https://www.ferc.gov/help/submission-guide.asp. For user assistance, contact FERC Online Support
by email at [email protected], or by phone at: (866) 208-3676
(toll-free).
15. Collection Nos., Titles and OMB Control Nos.: FERC-516
(Electric Rate Schedules and Tariff Filings, OMB Control No. 1902-
0096); FERC-537 (Gas Pipeline Certificates: Construction, Acquisition
and Abandonment; OMB Control No. 1902-0060); FERC-538 (Gas Pipeline
Certificates: Section 7(a) Mandatory Initial Service, OMB Control No.
1902-0061); FERC-545 (Gas Pipeline Rates: Rate Change (Non-formal), OMB
Control No. 1902-0154); FERC-546 (Certificated Rate Filings: Gas
Pipeline Rates, OMB Control No. 1902-0155); FERC-550 (Oil Pipeline
Rates--Tariff Filings and Depreciation Studies, OMB Control No. 1902-
0089); FERC-555 (Preservation of Records for Public Utilities and
Licensees, Natural Gas and Oil Pipeline Companies, OMB Control No.
1902-0098).
16. Action: Proposed modifications to collections of information in
accordance with the proposed policy statement.
17. Respondents: The estimate of the number of respondents that may
elect to use project-area wage standards in calculating the labor cost
component of cost-of-service rates is based upon the existing burden
inventory currently approved by OMB for filing rates cases,
depreciation studies and certificate filings, include initial rates or
seeking approval to charge existing rates for natural gas companies,
public utilities and oil pipelines. This burden estimate is based upon
one-third of the filings electing to include an additional burden by
the filer to incorporate labor costs based upon paying wages that at
minimum meet project-area wage standards.
18. Frequency of Information Collection: Utilities, when including
elements in rates reflecting future capital costs, may elect to make
the above showings in support of wages that are at or above project-
area wage standards. Such proceedings may include but are not limited
to certificates for new natural gas pipelines, general natural gas
pipeline and electric utility rate cases, proposed new or modified
depreciation rates, and proposed inclusion of asset retirement
obligation in rates. In total, utilities may make such a showing one
time per year.
19. Necessity of Information: The information would be necessary
for the utility to receive the presumption that wages for capital
projects that are at or above project-area wage standards are not just
and reasonable.
20. Internal Review: The Commission has reviewed the proposed
changes and has determined that such changes are necessary. These
requirements conform to the Commission's need for efficient information
collection, communication, and management within the energy industry in
support of the Commission's ensuring just and reasonable rates. The
Commission has specific, objective support for the burden estimates
associated with the information collection requirements. However, we
request comments with supporting background information on the
estimates for burden and cost.
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\15\ ``Burden'' is the total time, effort, or financial
resources expended by persons to generate, maintain, retain, or
disclose or provide information to or for a Federal agency. For
further explanation of what is included in the estimated burden,
refer to 5 CFR 1320.3.
\16\ Commission staff estimates that the respondents' skill set
(and wages and benefits) for this docket are comparable to those of
Commission employees. Based on the Commission's Fiscal Year 2023
average cost of $199,867/year (for wages plus benefits, for one
full-time employee), $96.00/hour is used.
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21. The Commission estimates the effect of the proposed policy
statement on burden \15\ and cost \16\ as follows:
[[Page 73836]]
Estimates of the Effects Due to the Proposed Policy Statement in Docket No. PL24-1-000
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D. Total
C. Annual number of F. Total annual hr. G. Cost per
A. Information collection B. Number of number of responses E. Average burden hrs. burdens & total annual respondent
respondents responses per (column B x & cost per response cost (column D x column (column F /
respondent column C) E) column B)
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FERC-1006 \17\
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FERC-537............................. 22 1 22 15 hrs. $1,440.......... 330 hrs. $31,680....... $1,440
FERC 516............................. 6 1 6 15 hrs. $1,440.......... 90 hrs. $8,640......... 1,440
FERC 545............................. 11 1 11 15 hrs. $1,440.......... 165 hrs. $15,840....... 1,440
FERC 555............................. 170 1 170 1 hr. $96............... 170 hrs. $16,320....... 96
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Other Affected Collections
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FERC-538............................. 1 1 1 15 hrs. $1,440.......... 15 hrs. $1,440......... 1,440
FERC-546............................. 16 1 16 15 hrs. $1,440.......... 240 hrs. $23,040....... 1,440
FERC-550............................. 7 1 7 15 hrs. $1,440.......... 105 hrs. $10,080....... 1,440
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Total Effect of the Proposed .............. .............. 233 ........................ 1,115 hrs. $107,040.... ..............
Policy Statement.
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IV. Document Availability
22. 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).
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\17\ The FERC 1006 is a new temporary collection number that
includes the burden changes due to the proposed policy statement in
the FERC-545, -537, -516, and -555, which are pending at OMB for
unrelated purposes.
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23. 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 of this document in
the docket number field.
24. User assistance is available for eLibrary and the Commission's
website during normal business hours from the Commission's 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].
By direction of the Commission.
Issued: October 19, 2023.
Kimberly D. Bose,
Secretary.
[FR Doc. 2023-23590 Filed 10-26-23; 8:45 am]
BILLING CODE 6717-01-P
