80 FR 43944 - Revisions to Auxiliary Installations, Replacement Facilities, and Siting and Maintenance Regulations
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission Federal Register Volume 80, Issue 142 (July 24, 2015)
Federal Energy Regulatory Commission
Federal Register Volume 80, Issue 142 (July 24, 2015)
| Page Range | 43944-43949 | |
| FR Document | 2015-17919 |
[Federal Register Volume 80, Number 142 (Friday, July 24, 2015)] [Rules and Regulations] [Pages 43944-43949] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-17919] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF ENERGY Federal Energy Regulatory Commission 18 CFR Parts 2 and 157 [Docket No. RM12-11-003; Order No. 790-B] Revisions to Auxiliary Installations, Replacement Facilities, and Siting and Maintenance Regulations AGENCY: Federal Energy Regulatory Commission. ACTION: Final rule, order on clarification. ----------------------------------------------------------------------- SUMMARY: The Federal Energy Regulatory Commission (Commission) is amending its regulations to: Provide pre-granted authority under a new paragraph to abandon or replace auxiliary facilities, subject to certain conditions; permit auxiliary facilities that cannot meet the conditions for the pre-granted abandonment authority in the new paragraph to be abandoned under the blanket certificate regulations, subject to those regulations' requirements; and permit replacement facilities constructed under the regulations to be abandoned under the blanket certificate regulations, subject to those regulations' requirements. DATES: This rule will become effective October 7, 2015. FOR FURTHER INFORMATION CONTACT: Katherine Liberty, Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, (202) 502-6491, [email protected]. Gordon Wagner, Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, (202) 502-8947, [email protected]. Howard Wheeler, Office of Energy Projects, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, (202) 502-8688, [email protected]. Shannon Jones, Office of Energy Projects, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, (202) 502-6410, [email protected]. SUPPLEMENTARY INFORMATION: ORDER NO. 790-B Table of Contents Paragraph Nos. I. Discussion.............................................. 4 A. Section 2.55(a) Auxiliary Facilities................ 9 B. Section 2.55(b) Replacements........................ 14 II. Information Collection Statement....................... 18 III. Environmental Analysis................................ 23 IV. Regulatory Flexibility Act............................. 24 V. Document Availability................................... 26 VI. Effective Date and Congressional Notification.......... 29 Order No. 790-B Final Rule Order on Rehearing and Clarification 1. On November 20, 2014, the Federal Energy Regulatory Commission (Commission) issued Order No. 790-A,\1\ which affirmed, inter alia, the Commission's clarification in Order No. 790 \2\ that auxiliary facilities installed under section 2.55(a) of the Commission's regulations \3\ may only utilize rights-of-way, facility sites, and work spaces authorized for the construction and operation of interstate transmission facilities. --------------------------------------------------------------------------- \1\ Revisions to Auxiliary Installations, Replacement Facilities, and Siting and Maintenance Regulations, Order No. 790-A, 79 FR 70056 (Nov. 25, 2014), FERC Stats. & Regs. ] 31,361 (2014) (cross-referenced at 149 FERC ] 61,144 (2014)). \2\ Order No. 790, 78 FR 72794-801 (Dec. 4, 2013), FERC Stats. & Regs. ] 31,351 (2013) (cross-referenced at 145 FERC ] 61,154 (2013)). \3\ 18 CFR 2.55 (2014). --------------------------------------------------------------------------- 2. On December 22, 2014, National Fuel Gas Supply Corporation and Empire Pipeline, Inc. (collectively, National Fuel) filed a request that the Commission revise its part 157, subpart F, blanket certificate regulations to provide a mechanism under those regulations for the abandonment of auxiliary facilities that were constructed under section 2.55(a) and replacement facilities that were constructed under section 2.55(b). National Fuel also requests clarification that in addition to authorizing new auxiliary installations, section 2.55(a) also authorizes the replacement of existing auxiliary facilities without the need for abandonment authority under section 7(b) of the Natural Gas Act (NGA). 3. As discussed below, this order responds to National Fuel's requests by (1) adopting a new subsection 2.55(a)(3) to provide pre- granted authority to abandon or replace auxiliary facilities, subject to certain conditions; (2) amending part 157 to provide authority, subject to the blanket certificate regulations' conditions, to abandon section 2.55(a) auxiliary facilities that cannot meet the conditions for the pre-granted abandonment authority being added to section 2.55(a) and to abandon section 2.55(b) replacement facilities. I. Discussion 4. In Order No. 790-A, the Commission explained that section 2.55 facilities are installed under the certificate authority that authorized the interstate transmission pipeline facilities being augmented or replaced. The Commission further explained that because section 2.55 auxiliary and replacement facilities are certificated facilities, a company needs prior authorization under NGA section 7(b) to abandon such facilities. The Commission stated that in many instances companies should be able to rely on their part 157, subpart F, blanket certificate authority to abandon section 2.55 facilities. In view of this statement, National Fuel believes it is the Commission's intent that companies be able to rely on their part 157 blanket certificate authority to abandon facilities installed under section 2.55. 5. National Fuel points out, however, that section 157.202(b)(3) of the blanket certificate regulations states that a ``facility'' for purposes of the blanket program does not include a facility ``described under section 2.55,'' and that section 157.216 states that blanket certificate abandonment authority is limited to facilities that ``did or could [[Page 43945]] now qualify'' for construction authorization under the blanket provisions. National Fuel therefore requests that the Commission revise its blanket certificate regulations to ensure that companies will be able to rely on part 157 blanket certificate authority to abandon section 2.55 auxiliary and replacement facilities. National Fuel stresses that without clear blanket certificate authority to abandon section 2.55 facilities that did or could now qualify for construction authorization under the blanket provisions, companies will be subject to the burden of having to file an NGA section 7(b) application for abandonment authorization for each individual facility. 6. In view of the Commission's statement in Order No. 790-A that NGA section 7(b) authority is required for the abandonment of section 2.55 facilities, National Fuel also seeks clarification on whether section 7(b) abandonment authority is needed to retire an auxiliary facility that is being replaced. 7. The Commission affirms its statement in Order No. 790-A that NGA section 7(b) authority is required for the abandonment of section 2.55 facilities, which includes the retirement of section 2.55 facilities that will be replaced. However, for the reasons discussed below, the Commission believes section 2.55(a) can be amended to include pre- granted authority to abandon section 2.55 facilities in certain situations and agrees that the blanket certificate regulations should be amended so that companies can rely on their blanket certificate authority to abandon auxiliary and replacement facilities that were or could have been constructed under section 2.55, provided the abandonment facilities meet the blanket program criteria. 8. Therefore, the Commission will amend: (1) Section 2.55(a) to provide pre-granted authorization to retire auxiliary facilities that are being replaced or permanently abandon the auxiliary facilities if there will be no need to go outside an authorized right-of-way, facility site, or work space,\4\ and (2) part 157, subpart F, to permit the use of blanket certificate authority, subject to the blanket program's conditions, to abandon section 2.55(a) auxiliary facilities if a company is unable to exercise the new pre-granted abandonment authority in section 2.55(a)(3) and to abandon section 2.55(b) replacement facilities.\5\ In view of the revisions and additions to section 2.55 since its original provisions were proposed in 1948,\6\ the Commission also is changing the current heading for section 2.55, ``Definition of terms used in section 7(c).'' The revised heading for section 2.55 will read ``Auxiliary installations and replacement facilities.'' --------------------------------------------------------------------------- \4\ As the Commission has previously explained in this rulemaking proceeding, the certificate authority for section 2.55 auxiliary and replacement facilities is a type of blanket certificate that was both a precursor of and a complement to part 157, subpart F, blanket certificate authority. Order No. 790, FERC Stats. & Regs. ] 31,351 at P 16; Order No. 790-A, ] 31,361 at P 13. However, unlike activities under section 2.55, which must comply with previously established environmental conditions, activities under part 157 that will involve ground disturbance or change operational air or noise emissions are subject to a project-specific environmental review in order to comply with the conditions in section 157.206(b). Because of this safeguard, blanket projects are permitted to use new rights-of-way and other previously undisturbed areas. In addition, environmental assessment reports are prepared for companies' larger-scale blanket projects to confirm that section 157.206(b)'s standard conditions will be adequate to ensure that the blanket project will have no significant adverse environmental impacts. \5\ As discussed herein, section 2.55 facilities are jurisdictional, and therefore cannot be abandoned without prior authorization under NGA section 7(b). While the certificate authorization for the transmission facilities being augmented or replaced by section 2.55 facilities is the predicate for the certificate authority to construct section 2.55 facilities, the underlying certificate authorization does not include pre-granted abandonment authority. Note that although a company cannot abandon a newer facility which replaces an older facility without first securing authorization to do so, section 2.55(b) operates to provide pre-granted authority for the older facility. This final rule's regulatory changes are prospective only, and therefore do not operate to retroactively authorize any previous abandonments of section 2.55 facilities. However, consistent with the Commission's prior assurances in this proceeding regarding instances where companies may have mistakenly relied on section 2.55 to install auxiliary facilities that utilized new rights-of-way or other areas that had not been subject to the Commission's prior environmental review and approval, the Commission similarly does not intend to look back to pursue enforcement action with respect to earlier abandonments of auxiliary facilities unless it comes to the Commission's attention that remedial environmental measures need to be taken. See Order No. 790-A at P 42. \6\ Filing of Applications for Certificates of Public Convenience and Necessity, Notice of Proposed Rulemaking, NOPR, 13 FR 6253, at 6254 (October 23, 1948). --------------------------------------------------------------------------- A. Section 2.55(a) Auxiliary Facilities 9. Auxiliary installations under section 2.55(a) are limited to facilities that will serve ``only for the purpose of obtaining more efficient operation or more economical operation of the authorized or proposed transmission facilities'' (emphasis added).\7\ Further, to add an auxiliary facility to a transmission pipeline system, a company cannot rely on section 2.55(a) unless its activities are confined to the permanent right-of-way, facility site, and temporary work space surveyed and authorized by the Commission in its environmental review of the transmission system.\8\ In addition, because section 2.55 facilities are constructed and operated under the certificate authorization for the transmission facilities being augmented or replaced, section 2.55 activities must not result in a violation of any environmental conditions applicable to the certificate authorizing the transmission facilities. Therefore, to install auxiliary facilities under section 2.55(a), a company must: --------------------------------------------------------------------------- \7\ As examples of auxiliary facilities that serve only to make pipeline operation more efficient or economical, section 2.55(a) lists ``[v]alves; drips; pig launchers/receivers; yard and station piping; cathodic protection equipment; gas cleaning, cooling and dehydration equipment; residual refining equipment; water pumping, treatment and cooling equipment; electrical and communication equipment; and buildings.'' \8\ The Commission acknowledged in Order No. 790 that it was not aware of any section 2.55(a) auxiliary installation activities outside authorized areas that approached the scale of certain section 2.55(b) replacement activities that had taken place outside authorized areas. However, as the Commission explained, section 2.55(a) auxiliary installations also must be restricted to previously authorized areas because ``the issues raised for sections 2.55(a) and (b) activities are the same.'' Order No. 790, FERC Stats. & Regs. ] 31,351 at P 20 (footnotes omitted). conform to the conditions of the certificate authorizing construction of the transmission facilities (e.g., all required mitigation measures, such as erosion control or revegetation protocols, that applied to the case-specific certificate or Part 157 blanket certificate authority under which the transmission facilities were constructed).\9\ --------------------------------------------------------------------------- \9\ Order No. 790, FERC Stats. & ] 31,351 at P 33. 10. The Commission believes these limitations will be sufficient to obviate the need for further environmental review if section 2.55(a) is amended to include pre-granted authority for companies to abandon, or to retire and replace, auxiliary facilities ``as described in section 2.55(a),'' regardless of whether the facilities to be abandoned or replaced were installed under section 2.55. Therefore, the Commission will add a new paragraph to section 2.55(a)(3) to provide pre-granted authority to abandon or replace auxiliary facilities if the auxiliary facilities were or could have been installed under section 2.55(a) \10\ and all activities are confined to areas previously reviewed and approved by the Commission in conjunction with its authorization of the augmented transmission facilities. --------------------------------------------------------------------------- \10\ Note that auxiliary facilities installed under case- specific or blanket certificate authority can also qualify for the pre-granted authority under section 2.55(a)(3) if such facilities comply with the section 2.55 spatial constraints. --------------------------------------------------------------------------- 11. Auxiliary facilities, by definition, serve exclusively to enhance the efficiency or economy of the operation of a transmission system; thus, the [[Page 43946]] abandonment or replacement of auxiliary facilities should not result in a reduction or abandonment of service supplied by that system.\11\ Nevertheless, the abandonment or replacement of auxiliary facilities under new section 2.55(a)(3) will be authorized only if there will be no adverse impact on customers' certificated services.\12\ --------------------------------------------------------------------------- \11\ Because section 2.55(b) provides authority to abandon the existing facilities being replaced under that subsection, section 2.55(b)(1)(i) provides that a replacement project is authorized only if the abandonment of the existing facilities ``will not result in a reduction or abandonment of service.'' \12\ The pre-granted abandonment authority provided by new subsection 2.55(a)(3) will satisfy the requirement set forth in NGA section 7(b) that ``no natural-gas company shall abandon all or any portion of its facilities subject to the jurisdiction of the Commission, or any service rendered by means of such facilities, without the permission and approval of the Commission first had and obtained.'' --------------------------------------------------------------------------- 12. Further, like the section 2.55(a) authority to install auxiliary facilities, the new section 2.55(a)(3) pre-granted authority will be available only if a company's abandonment or replacement activities will not result in a violation of the conditions on the certificate authorizing the augmented transmission facilities, in particular, the environmental mitigation conditions. For example, if the auxiliary facilities a company plans to abandon or replace are cathodic protection equipment located in a pipeline right-of-way, the case-specific or part 157 blanket certificate authorization for construction of the pipeline generally would have been conditioned on the company's compliance with an Upland Erosion Control, Revegetation, and Maintenance Plan \13\ and Wetland and Waterbody Construction and Mitigation Procedures.\14\ Just as the company would have been required to ensure compliance with these environmental certificate conditions to install the cathodic equipment under section 2.55(a), the company will need to similarly ensure that any exercise of the new section 2.55(a)(3) authority to abandon or replace the cathodic protection equipment will also comply with these environmental certificate conditions.\15\ --------------------------------------------------------------------------- \13\ See http://www.ferc.gov/industries/gas/enviro/plan.pdf. \14\ See http://www.ferc.gov/industries/gas/enviro/procedures.pdf. \15\ A company should seek guidance from staff if it is uncertain whether or how an environmental mitigation condition on the construction and operation of transmission facilities at a given location will apply to its abandonment of auxiliary facilities. --------------------------------------------------------------------------- B. Section 2.55(b) Replacements 13. Replacements under section 2.55(b), like auxiliary facility activities under section 2.55(a), are restricted to areas previously subject to the Commission's environmental review and approval.\16\ Also, replacements under section 2.55(b), like auxiliary facility activities under section 2.55(a), must conform to the conditions on the case-specific or part 157 blanket certificate authorization of the affected transmission facilities. --------------------------------------------------------------------------- \16\ As the Commission explained in Order No. 790, FERC Stats. & Regs. ] 31,351 at P 15, ``[i]n the case of section 2.55(b) replacement facilities, an environmental review was performed prior to construction of the existing facilities to be replaced.'' --------------------------------------------------------------------------- 14. As discussed earlier in this proceeding, replacement projects under section 2.55(b) can be much larger in scale than auxiliary installations under section 2.55(a).\17\ Further, section 2.55(b) can be used without prior notice to the Commission and shippers for replacing facilities upon which existing services are dependent,\18\ necessitating section 2.55(b)(1)(i)'s condition limiting replacement projects to situations where companies can ensure that the abandonment of existing facilities will not result in a reduction or cessation of service. In view of these considerations, even though activities under section 2.55 are restricted to areas subject to the Commission's prior environmental review and approval, the Commission cannot find, as it has above for section 2.55(a) auxiliary facilities, that it would be consistent with the public interest to provide pre-granted authority to abandon section 2.55(b) replacement facilities. However, abandonment authority for section 2.55(b) replacements can be provided under section 157.216 of the part 157 blanket certificate regulations, since blanket abandonments provide for environmental review.\19\ In addition, the blanket provisions afford an opportunity for public input under the prior notice provisions applicable to larger abandonment projects and also require that a company be able to demonstrate the facility it is planning to abandon (be it original or a replacement) is no longer needed to meet its service obligations.\20\ --------------------------------------------------------------------------- \17\ Id. at P 39. The Commission has explained the original intent for section 2.55(b) as follows: The types of construction activities being conducted under section 2.55 are replacements that should only involve basic maintenance or repair to relatively minor facilities where the Commission has determined that no significant impact to the environment will occur. The Commission believes that the existing right-of-way that was used to construct the original facilities should be sufficient for these types of activities. Pipelines may use their blanket certificate authority to perform projects involving more extensive work that would need additional workspace, including the use of other unrelated rights-of-way. This would allow for the required additional environmental scrutiny. Therefore, those projects should be done under the pipeline's blanket certificate. Id. at P 7, citing Order No. 603-A, FERC Stats. & Regs. ] 31,081 at 31,922 (1999). \18\ The only notice requirement applicable to replacements under section 2.55(b) is the requirement that a company give the Commission at least 30 days prior notice if the cost of a replacement project will exceed the blanket certificate regulations' current automatic cost limit. See section 2.55(b)(1)(iii) and (2). There is no public notice requirement under section 2.55(a). \19\ In general, a facility is replaced as it approaches the end of its useful life, a lifespan which may be measured in decades for cathodically protected pipeline. Given this lifespan, by the time a replaced facility reaches the end of its useful life, there may have been changes in the use of land proximate to the replaced facility that were not contemplated in the Commission's review of the initial project proposal, and thus not accounted for in the certificate conditions. Accordingly, the Commission finds it prudent to revisit potential environmental impacts prior to the abandonment of certain replaced facilities. \20\ Even when a company obtains written consent from all customers whose services during the last year depended on the facilities to be abandoned under section 157.216, the abandonment is subject to the blanket certificate regulations' prior notice provisions if the current cost of constructing the facilities to be abandoned would exceed the blanket certificate regulations' current automatic cost limit. 18 CFR 157.216(b)(2) (2014). --------------------------------------------------------------------------- 15. National Fuel observes that section 157.202(b)(3) states that a ``facility,'' for the purposes of the blanket program, ``does not include the items described'' in section 2.55, and section 157.216 states that the blanket abandonment authority described in that section is limited to facilities that ``did or could now qualify'' for construction under the blanket certificate regulations. Because these sections operate to exclude the items described in section 2.55 from eligibility for blanket certificate abandonment authorization, we will revise the blanket certificate regulations to allow companies to use the automatic and prior notice provisions of section 157.216 to abandon (1) replacement facilities that were or could have been constructed under section 2.55(b); and (2) auxiliary facilities that cannot be abandoned under new subsection 2.55(a)(3)'s pre-granted authority because their abandonment will require going out outside areas previously reviewed and approved by the Commission in authorizing the augmented transmission facilities. 16. As a result of these revisions to the blanket certificate regulations, a company will need to file an application for case- specific authority to abandon section 2.55 facilities only when the abandonment cannot qualify under the automatic or prior notice provisions of section 157.216 because the current cost to construct the facilities would exceed the blanket regulations' applicable cost limits, or because the company cannot obtain necessary customer consent as [[Page 43947]] required by section 157.216, or because the project cannot satisfy the section 157.206(b)'s environmental requirements.\21\ --------------------------------------------------------------------------- \21\ When a company relies on the automatic or prior notice provisions of section 157.216 to abandon a section 2.55 auxiliary or replacement facility, it will have to identify the abandonment in accordance with section 157.216(d) in the annual report of blanket certificate activities required by section 157.207. Section 157.216(d)(2) requires facilities abandoned under that section to be identified in a company's annual report by the ``docket number(s) of the certificate(s) authorizing the construction and operation of the facilities to be abandoned.'' Since the Commission does not assign docket numbers to facilities put in place under section 2.55, companies' annual reports of blanket certificate activities should identify the docket number(s) associated with the transmission facilities that were augmented or replaced by the section 2.55 facilities abandoned under section 157.216. If section 2.55 facilities are abandoned under section 157.216's prior notice provisions, the company's annual report should also include the docket number that was assigned to its prior notice filing. --------------------------------------------------------------------------- II. Information Collection Statement 17. The Paperwork Reduction Act (PRA) \22\ requires each federal agency to seek and obtain Office of Management and Budget (OMB) approval before undertaking a collection of information directed to ten or more persons or contained in a rule of general applicability.\23\ The OMB regulations implementing the PRA require approval of certain information collection requirements imposed by agency rules.\24\ We expect a net decrease in the reporting burden due to this rule's amendment of section 2.55(a) to provide pre-granted authority for companies to abandon or replace auxiliary facilities and amendment of the part 157 regulations to extend blanket certificate authority to the abandonment of certain section 2.55 auxiliary and replacement facilities. Companies must identify facilities abandoned under section 157.216 in the annual report submitted pursuant to section 157.207. While the expanded authority this rule provides under section 156.216 can be expected to increase the number of facilities abandoned under that section, companies can be expected to account for these additional facilities in the annual report with minimal, ministerial efforts. Consequently, this rule will substantially reduce current burdens on companies by eliminating the additional information that would otherwise need to be submitted in an NGA section 7(b) case-specific abandonment application.\25\ --------------------------------------------------------------------------- \22\ 44 U.S.C. 3501-3520 (2012). \23\ OMB's regulations provide at 5 CFR 1320.3(c)(4)(i) (2014) that ``[a]ny recordkeeping, reporting, or disclosure requirement contained in a rule of general applicability is deemed to involve ten or more persons.'' \24\ 5 CFR part 1320 (2014). \25\ FERC-537 (Gas Pipeline Certificates: Construction, Acquisition and Abandonment, OMB Control No. 1902-0060) covers both the abandonment application requirements of part 157 and the annual reports under 18 CFR 157.207. The expanded part 157 abandonment authority, as well as the new section 2.55(a)(3) pre-granted authority to abandon and replace auxiliary facilities, will be covered under FERC-537. --------------------------------------------------------------------------- 18. The Commission solicits comments from the public on the Commission's need for this information, whether the information will have practical utility, the accuracy of the burden estimates, recommendations to enhance the quality, utility, and clarity of the information to be collected, and any suggested methods for minimizing respondents' burden, including the use of automated information techniques. The burden estimates are for implementing the information collection requirements of this Final Rule. The Commission asks that any revised burden estimates submitted by commenters include the details and assumptions used to generate the estimates. 19. The collection of information modified by this Final Rule falls under FERC-537 (Gas Pipeline Certificates: Construction, Acquisition, and Abandonment). The following estimates of reporting burden are related only to this Final Rule. Public Reporting Burden: The estimated average annual burden changes made in Docket RM12-11-003 follow. --------------------------------------------------------------------------- \26\ The estimates for cost per response are derived using the following formula: Average Burden Hours per Response x $72 per Hour = Average Cost per Response. The cost per hour figure is the FERC average salary plus benefits for Fiscal Year 2015. Subject matter experts found that industry employment costs closely resemble FERC's regarding the FERC-537 information collection. RM12-11-003 Final Rule ---------------------------------------------------------------------------------------------------------------- Number of Average Total Number of responses burden annual Total respondents per hours per burden annual cost respondent response hours (1) (2) (3) (1)x(2)x(3) ($) \26\ ---------------------------------------------------------------------------------------------------------------- FERC-537 ---------------------------------------------------------------------------------------------------------------- Pre-Granted Auxiliary Approval (18 CFR 2.55)... 3 1 5 15 $1,080 Additional Blanket Certificate Abandonment 2 1 25 50 3,600 Applications.................................. Eliminated Blanket Certificate Abandonment -3 1 25 -75 -5,400 Applications.................................. Eliminated Case-Specific Abandonment -2 1 160 -320 -23,040 Applications.................................. Net Change due to RM12-11-003.................. ........... ........... ........... -330 -23,760 ---------------------------------------------------------------------------------------------------------------- Title: FERC-537 (Gas Pipeline Certificates: Construction, Acquisition and Abandonment) Action: Proposed revisions to information collection OMB Control No.: 1902-0060. Respondents: Business or other for-profit enterprise (Natural Gas Companies). Frequency of Responses: Ongoing and annual. Necessity of Information and Internal Review: The Commission has determined that the proposed revisions are necessary to establish more efficient means to abandon auxiliary and replacement facilities. These requirements conform to the Commission's plan for efficient information collection, communication, and management within the natural gas industry. The Commission has assured itself, by means of its internal review, that there is specific, objective support for the burden estimates associated with the abandonment requirements. 20. Interested persons may obtain information on the reporting requirements by contacting the following: Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426 [Attention: Ellen Brown, Office of the Executive Director, email: [email protected], phone: (202) 502-8663, fax: (202) 273-0873]. [[Page 43948]] 21. Comments concerning the collection of information and the associated burden estimate should be sent to the Commission and to the Office of Management and Budget, Office of Information and Regulatory Affairs, Washington, DC 20503 [Attention: Desk Officer for the Federal Energy Regulatory Commission, telephone: (202) 395-0710, fax: (202) 395-4718]. For security reasons, comments to OMB should be submitted by email to: [email protected]. Comments submitted to OMB should include OMB Control Number 1902-0060 (FERC-537). III. Environmental Analysis 22. The Commission is required to prepare an Environmental Assessment or an Environmental Impact Statement for any action that may have a significant adverse effect on the human environment. The Commission has categorically excluded certain actions from these requirements as not having a significant effect on the human environment. Generally, the regulatory actions taken in this rulemaking proceeding fall within the categorical exclusions in the Commission's regulations for actions that are clarifying, corrective, or procedural, and for information gathering, analysis, and dissemination. Although this rule alters the procedures by which companies may obtain abandonment authorization for certain types of facilities, it will not result in any additional abandonment activities and therefore will not have a significant adverse effect on the human environment. Accordingly, an environmental review is not necessary and has not been prepared in connection with this rulemaking. IV. Regulatory Flexibility Act 23. The Regulatory Flexibility Act of 1980 (RFA) generally requires a description and analysis of agency rules that will have a significant economic impact on a substantial number of small entities. The RFA mandates consideration of regulatory alternatives that accomplish the stated objectives of a proposed rule and that minimize any significant economic impact on a substantial number of small entities. The SBA Office of Size Standards develops the numerical definition of a small business. The SBA has established a size standard for companies transporting natural gas, stating that a firm is small if its annual receipts (and the receipts of its affiliates) are less than or equal to $27.5 million.\27\ --------------------------------------------------------------------------- \27\ See 13 CFR 121.201 for Subsector 486, NAICS code 486210 (Pipeline Transportation of Natural Gas). --------------------------------------------------------------------------- 24. The final rule provides less burdensome and less costly options for specified natural gas companies, the majority of which are not small businesses. The reporting requirements, which provide pre-granted abandonment authority under certain conditions and clarify the regulations, will reduce the burden and cost on those companies (large or small). The Commission estimates that an average of five projects per year will benefit from the less burdensome, streamlined requirements. Three of those five projects are expected to save $1,440 each, by using the new pre-granted approval in 18 CFR 2.55 (rather than the more burdensome blanket certificate abandonment application). In addition, two of those five filers are expected to save $9,720 each, by using the additional blanket certificate applications (rather than the case-specific abandonment applications). Accordingly, the Commission certifies that this Final Rule should not have a significant economic impact on a substantial number of small entities. V. Document Availability 25. In addition to publishing the full text of this document in the Federal Register, the Commission provides all interested persons an opportunity to view and/or print the contents of this document via the Internet through FERC's Home Page (http://www.ferc.gov) and in FERC's Public Reference Room during normal business hours (8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street NE., Room 2A, Washington, DC 20426. 26. From FERC's Home Page on the Internet, this information is available on eLibrary. The full text of this document is available on eLibrary in PDF and Microsoft Word format for viewing, printing, and/or downloading. To access this document in eLibrary, type the docket number excluding the last three digits of this document in the docket number field. 27. User assistance is available for eLibrary and the FERC's Web site during normal business hours from FERC Online Support at (202) 502-6652 (toll free at 1-866-208-3676) or email at [email protected], or the Public Reference Room at (202) 502- 8371, TTY (202) 502-8659. Email the Public Reference Room at [email protected]. VI. Effective Date and Congressional Notification 28. These regulations are effective October 7, 2015. The Commission has determined, with the concurrence of the Administrator of the Office of Information and Regulatory Affairs of OMB, that this rule is not a ``major rule'' as defined in section 351 of the Small Business Regulatory Enforcement Fairness Act of 1996. This final rule is being submitted to the Senate, House of Representatives, Government Accountability Office, and Small Business Administration. List of Subjects 18 CFR Part 2 Administrative practice and procedure, Reporting and recordkeeping requirements. 18 CFR Part 157 Administrative practice and procedure, Natural gas, Reporting and recordkeeping requirements. By the Commission. Issued: July 16, 2015. Nathaniel J. Davis, Sr., Deputy Secretary. In consideration of the foregoing, the Commission amends parts 2 and 157, chapter I, title 18, Code of Federal Regulations, as follows: PART 2--GENERAL POLICY AND INTERPRETATIONS 0 1. The authority citation for part 2 continues to read as follows: Authority: 5 U.S.C. 601; 15 U.S.C. 717-717z, 3301-3432; 16 U.S.C. 792-828c, 2601-2645, 42 U.S.C. 4321-4370h, 7101-7352. 0 2. Amend Sec. 2.55 by revising the section heading and adding paragraph (a)(3) to read as follows: Sec. 2.55 Auxiliary installations and replacement facilities. * * * * * (a) * * * (3) Abandonment or replacement of auxiliary installations. Authorization to abandon or replace auxiliary facilities that were or could be installed under paragraph (a)(1) of this section is pre- granted under section 7(b) of the Natural Gas Act, and no reporting is required, provided that: (i) All activities will be confined to areas, including temporary work space, previously authorized by the Commission for the construction and operation of facilities at that location; (ii) All activities will comply with applicable conditions on certificate authorizations for the construction and [[Page 43949]] operation of facilities at that location; and (iii) The abandonment or replacement will have no adverse impact on customers' certificated services. * * * * * PART 157--APPLICATIONS FOR CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY AND FOR ORDERS PREMITTING AND APPROVING ABANDONMENT UNDER SECTION 7 OF THE NATURAL GAS ACT 0 3. The authority citation for part 157 continues to read as follows: Authority: 15 U.S.C. 717-717z. 0 4. Amend Sec. 157.202 by adding a sentence at the end of paragraph (b)(2)(i) and revising paragraph (b)(3) to read as follows: Sec. 157.202 Definitions. * * * * * (b) * * * (2)(i) * * * Finally, for purposes of abandonment under Sec. 157.216, eligible facilities include auxiliary installations that do not qualify for pre-granted abandonment authority under Sec. 2.55(a)(3) and replacement facilities constructed under Sec. 2.55(b). * * * * * (3) Facility, for purposes of construction under this subpart, does not include an auxiliary facility that qualifies for construction under Sec. 2.55(a) of this chapter or a replacement facility that qualifies for construction under Sec. 2.55(b). * * * * * 0 5. Amend Sec. 157.216 by revising paragraphs (a)(2) and (b)(2) to read as follows: Sec. 157.216 Abandonment. (a) * * * (2)(i) An auxiliary facility as described in Sec. 2.55(a) of this chapter when the abandonment: (A) Will not exceed the cost limit in Sec. 157.208(d) for activities under the automatic provisions; (B) Will have no adverse impact on customers' certificated services; and (C) Cannot satisfy the right-of-way, facility site, and work space limitations for the pre-granted abandonment authority in Sec. 2.55(a)(3); (ii) A replacement facility that was or could have been constructed under Sec. 2.55(b) of this chapter, provided the current cost to construct the facilities would not exceed the cost limit in Sec. 157.208(d) for activities under the automatic provisions and the certificate holder obtains the written consent of each customer served using the facility during the past 12 months; (iii) Any other facility that did or could now qualify for automatic authorization as described in Sec. 157.203(b), provided the certificate holder obtains the written consent of each customer served using the facility during the past 12 months. (b) * * * (2)(i) An auxiliary facility as described in Sec. 2.55(a) of this chapter when the abandonment: (A) Will exceed the cost limit in Sec. 157.208(d) for activities under the prior notice provisions; (B) Will have no adverse impact on customers' certificated services; and (C) Cannot satisfy the right-of-way, facility site, and work space limitations for the pre-granted abandonment authority in Sec. 2.55(a)(3). (ii) A replacement facility that was or could have been constructed under Sec. 2.55(b) of this chapter, provided the current cost to construct the facilities would not exceed the cost limit in Sec. 157.208(d) for activities under the prior notice provisions and the certificate holder obtains the written consent of each customer served using the facility during the past 12 months; (iii) Any other facility that did or could now qualify for prior notice authorization as described in Sec. 157.203(c), provided the certificate holder obtains the written consent of each customer served using the facility during the past 12 months. * * * * * [FR Doc. 2015-17919 Filed 7-23-15; 8:45 am] BILLING CODE 6717-01-P
![43944 Federal Register / Vol. 80, No. 142 / Friday, July 24, 2015 / Rules and Regulations
(IBR) of the service information listed in this regulations to be abandoned under the work spaces authorized for the
paragraph under 5 U.S.C. 552(a) and 1 CFR blanket certificate regulations, subject to construction and operation of interstate
part 51. those regulations’ requirements. transmission facilities.
(2) You must use this service information 2. On December 22, 2014, National
as applicable to do the actions required by DATES: This rule will become effective
October 7, 2015. Fuel Gas Supply Corporation and
this AD, unless the AD specifies otherwise.
(i) Boeing Alert Service Bulletin 747– FOR FURTHER INFORMATION CONTACT:
Empire Pipeline, Inc. (collectively,
53A2463, Revision 2, dated June 16, 2014. National Fuel) filed a request that the
Katherine Liberty, Office of the General Commission revise its part 157, subpart
(ii) Reserved. Counsel, Federal Energy Regulatory
(3) For Boeing service information F, blanket certificate regulations to
Commission, 888 First Street NE., provide a mechanism under those
identified in this AD, contact Boeing
Commercial Airplanes, Attention: Data & Washington, DC 20426, (202) 502– regulations for the abandonment of
Services Management, P.O. Box 3707, MC 6491, katherine.liberty@ferc.gov. auxiliary facilities that were constructed
2H–65, Seattle, WA 98124–2207; telephone Gordon Wagner, Office of the General under section 2.55(a) and replacement
206–544–5000, extension 1; fax 206–766– Counsel, Federal Energy Regulatory facilities that were constructed under
5680; Internet https:// Commission, 888 First Street NE., section 2.55(b). National Fuel also
www.myboeingfleet.com. Washington, DC 20426, (202) 502–
(4) You may view this service information
requests clarification that in addition to
8947, gordon.wagner@ferc.gov. authorizing new auxiliary installations,
at FAA, Transport Airplane Directorate, 1601
Lind Avenue SW., Renton, WA. For Howard Wheeler, Office of Energy section 2.55(a) also authorizes the
information on the availability of this Projects, Federal Energy Regulatory replacement of existing auxiliary
material at the FAA, call 425–227–1221. Commission, 888 First Street NE., facilities without the need for
(5) You may view this service information Washington, DC 20426, (202) 502– abandonment authority under section
that is incorporated by reference at the 8688, howard.wheeler@ferc.gov. 7(b) of the Natural Gas Act (NGA).
National Archives and Records Shannon Jones, Office of Energy 3. As discussed below, this order
Administration (NARA). For information on responds to National Fuel’s requests by
Projects, Federal Energy Regulatory
the availability of this material at NARA, call (1) adopting a new subsection 2.55(a)(3)
202–741–6030, or go to: http:// Commission, 888 First Street NE.,
Washington, DC 20426, (202) 502– to provide pre-granted authority to
www.archives.gov/federal-register/cfr/ibr-
locations.html. 6410, shannon.jones@ferc.gov. abandon or replace auxiliary facilities,
subject to certain conditions; (2)
Issued in Renton, Washington, on July 10, SUPPLEMENTARY INFORMATION:
amending part 157 to provide authority,
2015. ORDER NO. 790–B subject to the blanket certificate
Michael Kaszycki, regulations’ conditions, to abandon
Table of Contents
Acting Manager, Transport Airplane section 2.55(a) auxiliary facilities that
Directorate, Aircraft Certification Service. cannot meet the conditions for the pre-
Paragraph
[FR Doc. 2015–17978 Filed 7–23–15; 8:45 am] Nos. granted abandonment authority being
BILLING CODE 4910–13–P added to section 2.55(a) and to abandon
I. Discussion ............................. 4 section 2.55(b) replacement facilities.
A. Section 2.55(a) Auxil-
iary Facilities ................ 9 I. Discussion
DEPARTMENT OF ENERGY B. Section 2.55(b) Re- 4. In Order No. 790–A, the
placements .................... 14 Commission explained that section 2.55
Federal Energy Regulatory II. Information Collection
Commission Statement .............................. 18
facilities are installed under the
III. Environmental Analysis .... 23 certificate authority that authorized the
18 CFR Parts 2 and 157 IV. Regulatory Flexibility Act 24 interstate transmission pipeline
V. Document Availability ....... 26 facilities being augmented or replaced.
[Docket No. RM12–11–003; Order No. 790– VI. Effective Date and Con- The Commission further explained that
B] gressional Notification ......... 29 because section 2.55 auxiliary and
Revisions to Auxiliary Installations, Order No. 790–B replacement facilities are certificated
Replacement Facilities, and Siting and facilities, a company needs prior
Final Rule authorization under NGA section 7(b) to
Maintenance Regulations
Order on Rehearing and Clarification abandon such facilities. The
AGENCY: Federal Energy Regulatory Commission stated that in many
Commission. 1. On November 20, 2014, the Federal instances companies should be able to
Energy Regulatory Commission rely on their part 157, subpart F, blanket
ACTION: Final rule, order on
(Commission) issued Order No. 790–A,1 certificate authority to abandon section
clarification. which affirmed, inter alia, the 2.55 facilities. In view of this statement,
SUMMARY: The Federal Energy Commission’s clarification in Order No. National Fuel believes it is the
Regulatory Commission (Commission) is 790 2 that auxiliary facilities installed Commission’s intent that companies be
amending its regulations to: Provide under section 2.55(a) of the able to rely on their part 157 blanket
pre-granted authority under a new Commission’s regulations 3 may only certificate authority to abandon facilities
paragraph to abandon or replace utilize rights-of-way, facility sites, and installed under section 2.55.
auxiliary facilities, subject to certain 1 Revisions to Auxiliary Installations,
5. National Fuel points out, however,
conditions; permit auxiliary facilities Replacement Facilities, and Siting and
that section 157.202(b)(3) of the blanket
that cannot meet the conditions for the certificate regulations states that a
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Maintenance Regulations, Order No. 790–A, 79 FR
pre-granted abandonment authority in 70056 (Nov. 25, 2014), FERC Stats. & Regs. ¶ 31,361 ‘‘facility’’ for purposes of the blanket
the new paragraph to be abandoned (2014) (cross-referenced at 149 FERC ¶ 61,144 program does not include a facility
(2014)).
under the blanket certificate regulations, 2 Order No. 790, 78 FR 72794–801 (Dec. 4, 2013),
‘‘described under section 2.55,’’ and that
subject to those regulations’ FERC Stats. & Regs. ¶ 31,351 (2013) (cross- section 157.216 states that blanket
requirements; and permit replacement referenced at 145 FERC ¶ 61,154 (2013)). certificate abandonment authority is
facilities constructed under the 3 18 CFR 2.55 (2014). limited to facilities that ‘‘did or could
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![Federal Register / Vol. 80, No. 142 / Friday, July 24, 2015 / Rules and Regulations 43945
now qualify’’ for construction (2) part 157, subpart F, to permit the use transmission pipeline system, a
authorization under the blanket of blanket certificate authority, subject company cannot rely on section 2.55(a)
provisions. National Fuel therefore to the blanket program’s conditions, to unless its activities are confined to the
requests that the Commission revise its abandon section 2.55(a) auxiliary permanent right-of-way, facility site,
blanket certificate regulations to ensure facilities if a company is unable to and temporary work space surveyed and
that companies will be able to rely on exercise the new pre-granted authorized by the Commission in its
part 157 blanket certificate authority to abandonment authority in section environmental review of the
abandon section 2.55 auxiliary and 2.55(a)(3) and to abandon section transmission system.8 In addition,
replacement facilities. National Fuel 2.55(b) replacement facilities.5 In view because section 2.55 facilities are
stresses that without clear blanket of the revisions and additions to section constructed and operated under the
certificate authority to abandon section 2.55 since its original provisions were certificate authorization for the
2.55 facilities that did or could now proposed in 1948,6 the Commission also transmission facilities being augmented
qualify for construction authorization is changing the current heading for or replaced, section 2.55 activities must
under the blanket provisions, section 2.55, ‘‘Definition of terms used not result in a violation of any
companies will be subject to the burden in section 7(c).’’ The revised heading for environmental conditions applicable to
of having to file an NGA section 7(b) section 2.55 will read ‘‘Auxiliary the certificate authorizing the
application for abandonment installations and replacement facilities.’’ transmission facilities. Therefore, to
authorization for each individual install auxiliary facilities under section
facility. A. Section 2.55(a) Auxiliary Facilities 2.55(a), a company must:
6. In view of the Commission’s 9. Auxiliary installations under conform to the conditions of the certificate
statement in Order No. 790–A that NGA section 2.55(a) are limited to facilities authorizing construction of the transmission
section 7(b) authority is required for the that will serve ‘‘only for the purpose of facilities (e.g., all required mitigation
abandonment of section 2.55 facilities, obtaining more efficient operation or measures, such as erosion control or
National Fuel also seeks clarification on more economical operation of the revegetation protocols, that applied to the
whether section 7(b) abandonment authorized or proposed transmission case-specific certificate or Part 157 blanket
authority is needed to retire an auxiliary facilities’’ (emphasis added).7 Further, certificate authority under which the
transmission facilities were constructed).9
facility that is being replaced. to add an auxiliary facility to a
7. The Commission affirms its 10. The Commission believes these
statement in Order No. 790–A that NGA rights-of-way and other previously undisturbed limitations will be sufficient to obviate
section 7(b) authority is required for the areas. In addition, environmental assessment the need for further environmental
abandonment of section 2.55 facilities, reports are prepared for companies’ larger-scale review if section 2.55(a) is amended to
blanket projects to confirm that section 157.206(b)’s
which includes the retirement of section standard conditions will be adequate to ensure that
include pre-granted authority for
2.55 facilities that will be replaced. the blanket project will have no significant adverse companies to abandon, or to retire and
However, for the reasons discussed environmental impacts. replace, auxiliary facilities ‘‘as
below, the Commission believes section 5 As discussed herein, section 2.55 facilities are
described in section 2.55(a),’’ regardless
2.55(a) can be amended to include pre- jurisdictional, and therefore cannot be abandoned of whether the facilities to be
without prior authorization under NGA section
granted authority to abandon section 7(b). While the certificate authorization for the abandoned or replaced were installed
2.55 facilities in certain situations and transmission facilities being augmented or replaced under section 2.55. Therefore, the
agrees that the blanket certificate by section 2.55 facilities is the predicate for the Commission will add a new paragraph
regulations should be amended so that certificate authority to construct section 2.55 to section 2.55(a)(3) to provide pre-
facilities, the underlying certificate authorization
companies can rely on their blanket does not include pre-granted abandonment granted authority to abandon or replace
certificate authority to abandon authority. Note that although a company cannot auxiliary facilities if the auxiliary
auxiliary and replacement facilities that abandon a newer facility which replaces an older facilities were or could have been
were or could have been constructed facility without first securing authorization to do so, installed under section 2.55(a) 10 and all
section 2.55(b) operates to provide pre-granted
under section 2.55, provided the authority for the older facility. This final rule’s activities are confined to areas
abandonment facilities meet the blanket regulatory changes are prospective only, and previously reviewed and approved by
program criteria. therefore do not operate to retroactively authorize the Commission in conjunction with its
8. Therefore, the Commission will any previous abandonments of section 2.55 authorization of the augmented
amend: (1) Section 2.55(a) to provide facilities. However, consistent with the
Commission’s prior assurances in this proceeding transmission facilities.
pre-granted authorization to retire regarding instances where companies may have 11. Auxiliary facilities, by definition,
auxiliary facilities that are being mistakenly relied on section 2.55 to install auxiliary serve exclusively to enhance the
replaced or permanently abandon the facilities that utilized new rights-of-way or other efficiency or economy of the operation
auxiliary facilities if there will be no areas that had not been subject to the Commission’s
prior environmental review and approval, the of a transmission system; thus, the
need to go outside an authorized right- Commission similarly does not intend to look back
of-way, facility site, or work space,4 and to pursue enforcement action with respect to earlier 8 The Commission acknowledged in Order No.
abandonments of auxiliary facilities unless it comes 790 that it was not aware of any section 2.55(a)
4 As the Commission has previously explained in to the Commission’s attention that remedial auxiliary installation activities outside authorized
this rulemaking proceeding, the certificate authority environmental measures need to be taken. See areas that approached the scale of certain section
for section 2.55 auxiliary and replacement facilities Order No. 790–A at P 42. 2.55(b) replacement activities that had taken place
is a type of blanket certificate that was both a 6 Filing of Applications for Certificates of Public outside authorized areas. However, as the
precursor of and a complement to part 157, subpart Convenience and Necessity, Notice of Proposed Commission explained, section 2.55(a) auxiliary
F, blanket certificate authority. Order No. 790, Rulemaking, NOPR, 13 FR 6253, at 6254 (October installations also must be restricted to previously
FERC Stats. & Regs. ¶ 31,351 at P 16; Order No. 23, 1948). authorized areas because ‘‘the issues raised for
790–A, ¶ 31,361 at P 13. However, unlike activities 7 As examples of auxiliary facilities that serve sections 2.55(a) and (b) activities are the same.’’
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under section 2.55, which must comply with only to make pipeline operation more efficient or Order No. 790, FERC Stats. & Regs. ¶ 31,351 at P
previously established environmental conditions, economical, section 2.55(a) lists ‘‘[v]alves; drips; pig 20 (footnotes omitted).
9 Order No. 790, FERC Stats. & ¶ 31,351 at P 33.
activities under part 157 that will involve ground launchers/receivers; yard and station piping;
disturbance or change operational air or noise cathodic protection equipment; gas cleaning, 10 Note that auxiliary facilities installed under
emissions are subject to a project-specific cooling and dehydration equipment; residual case-specific or blanket certificate authority can
environmental review in order to comply with the refining equipment; water pumping, treatment and also qualify for the pre-granted authority under
conditions in section 157.206(b). Because of this cooling equipment; electrical and communication section 2.55(a)(3) if such facilities comply with the
safeguard, blanket projects are permitted to use new equipment; and buildings.’’ section 2.55 spatial constraints.
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![43946 Federal Register / Vol. 80, No. 142 / Friday, July 24, 2015 / Rules and Regulations
abandonment or replacement of under section 2.55(a), are restricted to environmental review.19 In addition, the
auxiliary facilities should not result in areas previously subject to the blanket provisions afford an opportunity
a reduction or abandonment of service Commission’s environmental review for public input under the prior notice
supplied by that system.11 Nevertheless, and approval.16 Also, replacements provisions applicable to larger
the abandonment or replacement of under section 2.55(b), like auxiliary abandonment projects and also require
auxiliary facilities under new section facility activities under section 2.55(a), that a company be able to demonstrate
2.55(a)(3) will be authorized only if must conform to the conditions on the the facility it is planning to abandon (be
there will be no adverse impact on case-specific or part 157 blanket it original or a replacement) is no longer
customers’ certificated services.12 certificate authorization of the affected needed to meet its service obligations.20
12. Further, like the section 2.55(a) transmission facilities. 15. National Fuel observes that
authority to install auxiliary facilities, 14. As discussed earlier in this section 157.202(b)(3) states that a
the new section 2.55(a)(3) pre-granted proceeding, replacement projects under ‘‘facility,’’ for the purposes of the
authority will be available only if a section 2.55(b) can be much larger in blanket program, ‘‘does not include the
company’s abandonment or replacement scale than auxiliary installations under items described’’ in section 2.55, and
activities will not result in a violation of section 2.55(a).17 Further, section section 157.216 states that the blanket
the conditions on the certificate 2.55(b) can be used without prior notice abandonment authority described in
authorizing the augmented transmission to the Commission and shippers for that section is limited to facilities that
facilities, in particular, the replacing facilities upon which existing ‘‘did or could now qualify’’ for
environmental mitigation conditions. services are dependent,18 necessitating construction under the blanket
For example, if the auxiliary facilities a section 2.55(b)(1)(i)’s condition limiting certificate regulations. Because these
company plans to abandon or replace replacement projects to situations where sections operate to exclude the items
are cathodic protection equipment companies can ensure that the described in section 2.55 from eligibility
located in a pipeline right-of-way, the abandonment of existing facilities will for blanket certificate abandonment
case-specific or part 157 blanket not result in a reduction or cessation of authorization, we will revise the blanket
certificate authorization for construction service. In view of these considerations, certificate regulations to allow
of the pipeline generally would have even though activities under section companies to use the automatic and
been conditioned on the company’s 2.55 are restricted to areas subject to the prior notice provisions of section
compliance with an Upland Erosion Commission’s prior environmental 157.216 to abandon (1) replacement
Control, Revegetation, and Maintenance review and approval, the Commission facilities that were or could have been
Plan 13 and Wetland and Waterbody cannot find, as it has above for section constructed under section 2.55(b); and
Construction and Mitigation 2.55(a) auxiliary facilities, that it would (2) auxiliary facilities that cannot be
Procedures.14 Just as the company be consistent with the public interest to abandoned under new subsection
would have been required to ensure provide pre-granted authority to 2.55(a)(3)’s pre-granted authority
compliance with these environmental abandon section 2.55(b) replacement because their abandonment will require
certificate conditions to install the facilities. However, abandonment going out outside areas previously
cathodic equipment under section authority for section 2.55(b) reviewed and approved by the
2.55(a), the company will need to replacements can be provided under Commission in authorizing the
similarly ensure that any exercise of the section 157.216 of the part 157 blanket augmented transmission facilities.
new section 2.55(a)(3) authority to certificate regulations, since blanket 16. As a result of these revisions to
abandon or replace the cathodic abandonments provide for the blanket certificate regulations, a
protection equipment will also comply company will need to file an application
with these environmental certificate
16 As the Commission explained in Order No. for case-specific authority to abandon
790, FERC Stats. & Regs. ¶ 31,351 at P 15, ‘‘[i]n the section 2.55 facilities only when the
conditions.15 case of section 2.55(b) replacement facilities, an
environmental review was performed prior to
abandonment cannot qualify under the
B. Section 2.55(b) Replacements construction of the existing facilities to be automatic or prior notice provisions of
13. Replacements under section replaced.’’ section 157.216 because the current cost
2.55(b), like auxiliary facility activities
17 Id. at P 39. The Commission has explained the
to construct the facilities would exceed
original intent for section 2.55(b) as follows: the blanket regulations’ applicable cost
The types of construction activities being
11 Because section 2.55(b) provides authority to
conducted under section 2.55 are replacements that
limits, or because the company cannot
abandon the existing facilities being replaced under should only involve basic maintenance or repair to obtain necessary customer consent as
that subsection, section 2.55(b)(1)(i) provides that a relatively minor facilities where the Commission
replacement project is authorized only if the has determined that no significant impact to the 19 In general, a facility is replaced as it
abandonment of the existing facilities ‘‘will not environment will occur. The Commission believes approaches the end of its useful life, a lifespan
result in a reduction or abandonment of service.’’ that the existing right-of-way that was used to which may be measured in decades for cathodically
12 The pre-granted abandonment authority
construct the original facilities should be sufficient protected pipeline. Given this lifespan, by the time
provided by new subsection 2.55(a)(3) will satisfy for these types of activities. Pipelines may use their a replaced facility reaches the end of its useful life,
the requirement set forth in NGA section 7(b) that blanket certificate authority to perform projects there may have been changes in the use of land
‘‘no natural-gas company shall abandon all or any involving more extensive work that would need proximate to the replaced facility that were not
portion of its facilities subject to the jurisdiction of additional workspace, including the use of other contemplated in the Commission’s review of the
the Commission, or any service rendered by means unrelated rights-of-way. This would allow for the initial project proposal, and thus not accounted for
of such facilities, without the permission and required additional environmental scrutiny. in the certificate conditions. Accordingly, the
approval of the Commission first had and Therefore, those projects should be done under the Commission finds it prudent to revisit potential
obtained.’’ pipeline’s blanket certificate. environmental impacts prior to the abandonment of
13 See http://www.ferc.gov/industries/gas/enviro/
Id. at P 7, citing Order No. 603–A, FERC Stats. certain replaced facilities.
plan.pdf. & Regs. ¶ 31,081 at 31,922 (1999). 20 Even when a company obtains written consent
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14 See http://www.ferc.gov/industries/gas/enviro/ 18 The only notice requirement applicable to from all customers whose services during the last
procedures.pdf. replacements under section 2.55(b) is the year depended on the facilities to be abandoned
15 A company should seek guidance from staff if requirement that a company give the Commission under section 157.216, the abandonment is subject
it is uncertain whether or how an environmental at least 30 days prior notice if the cost of a to the blanket certificate regulations’ prior notice
mitigation condition on the construction and replacement project will exceed the blanket provisions if the current cost of constructing the
operation of transmission facilities at a given certificate regulations’ current automatic cost limit. facilities to be abandoned would exceed the blanket
location will apply to its abandonment of auxiliary See section 2.55(b)(1)(iii) and (2). There is no public certificate regulations’ current automatic cost limit.
facilities. notice requirement under section 2.55(a). 18 CFR 157.216(b)(2) (2014).
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![Federal Register / Vol. 80, No. 142 / Friday, July 24, 2015 / Rules and Regulations 43947
required by section 157.216, or because section 2.55 auxiliary and replacement burden estimates, recommendations to
the project cannot satisfy the section facilities. Companies must identify enhance the quality, utility, and clarity
157.206(b)’s environmental facilities abandoned under section of the information to be collected, and
requirements.21 157.216 in the annual report submitted any suggested methods for minimizing
II. Information Collection Statement pursuant to section 157.207. While the respondents’ burden, including the use
expanded authority this rule provides of automated information techniques.
17. The Paperwork Reduction Act under section 156.216 can be expected The burden estimates are for
(PRA) 22 requires each federal agency to to increase the number of facilities implementing the information
seek and obtain Office of Management abandoned under that section, collection requirements of this Final
and Budget (OMB) approval before companies can be expected to account Rule. The Commission asks that any
undertaking a collection of information
for these additional facilities in the revised burden estimates submitted by
directed to ten or more persons or
annual report with minimal, ministerial commenters include the details and
contained in a rule of general
efforts. Consequently, this rule will assumptions used to generate the
applicability.23 The OMB regulations
substantially reduce current burdens on estimates.
implementing the PRA require approval
companies by eliminating the additional 19. The collection of information
of certain information collection
requirements imposed by agency information that would otherwise need modified by this Final Rule falls under
rules.24 We expect a net decrease in the to be submitted in an NGA section 7(b) FERC–537 (Gas Pipeline Certificates:
reporting burden due to this rule’s case-specific abandonment Construction, Acquisition, and
amendment of section 2.55(a) to provide application.25 Abandonment). The following estimates
pre-granted authority for companies to 18. The Commission solicits of reporting burden are related only to
abandon or replace auxiliary facilities comments from the public on the this Final Rule. Public Reporting
and amendment of the part 157 Commission’s need for this information, Burden: The estimated average annual
regulations to extend blanket certificate whether the information will have burden changes made in Docket RM12–
authority to the abandonment of certain practical utility, the accuracy of the 11–003 follow.
RM12–11–003 FINAL RULE
Number of Average Total annual
Number of responses burden Total annual
burden
respondents per hours per cost
hours
respondent response
(1) (2) (3) (1)×(2)×(3) ($) 26
FERC–537
Pre-Granted Auxiliary Approval (18 CFR 2.55) ....................................... 3 1 5 15 $1,080
Additional Blanket Certificate Abandonment Applications ....................... 2 1 25 50 3,600
Eliminated Blanket Certificate Abandonment Applications ...................... ¥3 1 25 ¥75 ¥5,400
Eliminated Case-Specific Abandonment Applications ............................. ¥2 1 160 ¥320 ¥23,040
Net Change due to RM12–11–003 .......................................................... .................... .................... .................... ¥330 ¥23,760
Title: FERC–537 (Gas Pipeline Necessity of Information and Internal that there is specific, objective support
Certificates: Construction, Acquisition Review: The Commission has for the burden estimates associated with
and Abandonment) determined that the proposed revisions the abandonment requirements.
Action: Proposed revisions to are necessary to establish more efficient 20. Interested persons may obtain
information collection means to abandon auxiliary and information on the reporting
replacement facilities. These requirements by contacting the
OMB Control No.: 1902–0060.
requirements conform to the following: Federal Energy Regulatory
Respondents: Business or other for- Commission’s plan for efficient Commission, 888 First Street, NE.,
profit enterprise (Natural Gas information collection, communication, Washington, DC 20426 [Attention: Ellen
Companies). and management within the natural gas Brown, Office of the Executive Director,
Frequency of Responses: Ongoing and industry. The Commission has assured email: DataClearance@ferc.gov, phone:
annual. itself, by means of its internal review, (202) 502–8663, fax: (202) 273–0873].
21 When a company relies on the automatic or facilities that were augmented or replaced by the Control No. 1902–0060) covers both the
prior notice provisions of section 157.216 to section 2.55 facilities abandoned under section abandonment application requirements of part 157
abandon a section 2.55 auxiliary or replacement 157.216. If section 2.55 facilities are abandoned and the annual reports under 18 CFR 157.207. The
facility, it will have to identify the abandonment in under section 157.216’s prior notice provisions, the expanded part 157 abandonment authority, as well
accordance with section 157.216(d) in the annual company’s annual report should also include the as the new section 2.55(a)(3) pre-granted authority
report of blanket certificate activities required by docket number that was assigned to its prior notice
to abandon and replace auxiliary facilities, will be
section 157.207. Section 157.216(d)(2) requires filing.
22 44 U.S.C. 3501–3520 (2012). covered under FERC–537.
facilities abandoned under that section to be
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26 The estimates for cost per response are derived
identified in a company’s annual report by the 23 OMB’s regulations provide at 5 CFR
‘‘docket number(s) of the certificate(s) authorizing 1320.3(c)(4)(i) (2014) that ‘‘[a]ny recordkeeping, using the following formula: Average Burden Hours
the construction and operation of the facilities to be reporting, or disclosure requirement contained in a per Response × $72 per Hour = Average Cost per
abandoned.’’ Since the Commission does not assign rule of general applicability is deemed to involve Response. The cost per hour figure is the FERC
docket numbers to facilities put in place under ten or more persons.’’ average salary plus benefits for Fiscal Year 2015.
section 2.55, companies’ annual reports of blanket 24 5 CFR part 1320 (2014). Subject matter experts found that industry
certificate activities should identify the docket 25 FERC–537 (Gas Pipeline Certificates: employment costs closely resemble FERC’s
number(s) associated with the transmission Construction, Acquisition and Abandonment, OMB regarding the FERC–537 information collection.
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![43948 Federal Register / Vol. 80, No. 142 / Friday, July 24, 2015 / Rules and Regulations
21. Comments concerning the the receipts of its affiliates) are less than VI. Effective Date and Congressional
collection of information and the or equal to $27.5 million.27 Notification
associated burden estimate should be 24. The final rule provides less 28. These regulations are effective
sent to the Commission and to the burdensome and less costly options for October 7, 2015. The Commission has
Office of Management and Budget, specified natural gas companies, the determined, with the concurrence of the
Office of Information and Regulatory majority of which are not small Administrator of the Office of
Affairs, Washington, DC 20503 businesses. The reporting requirements, Information and Regulatory Affairs of
[Attention: Desk Officer for the Federal which provide pre-granted OMB, that this rule is not a ‘‘major rule’’
Energy Regulatory Commission, abandonment authority under certain as defined in section 351 of the Small
telephone: (202) 395–0710, fax: (202) conditions and clarify the regulations, Business Regulatory Enforcement
395–4718]. For security reasons, will reduce the burden and cost on Fairness Act of 1996. This final rule is
comments to OMB should be submitted those companies (large or small). The being submitted to the Senate, House of
by email to: oira_submission@ Commission estimates that an average of Representatives, Government
omb.eop.gov. Comments submitted to five projects per year will benefit from Accountability Office, and Small
OMB should include OMB Control the less burdensome, streamlined Business Administration.
requirements. Three of those five
Number 1902–0060 (FERC–537). List of Subjects
projects are expected to save $1,440
III. Environmental Analysis each, by using the new pre-granted 18 CFR Part 2
approval in 18 CFR 2.55 (rather than the
22. The Commission is required to more burdensome blanket certificate Administrative practice and
prepare an Environmental Assessment abandonment application). In addition, procedure, Reporting and recordkeeping
or an Environmental Impact Statement two of those five filers are expected to requirements.
for any action that may have a save $9,720 each, by using the 18 CFR Part 157
significant adverse effect on the human additional blanket certificate
environment. The Commission has applications (rather than the case- Administrative practice and
categorically excluded certain actions specific abandonment applications). procedure, Natural gas, Reporting and
from these requirements as not having a Accordingly, the Commission certifies recordkeeping requirements.
significant effect on the human that this Final Rule should not have a By the Commission.
environment. Generally, the regulatory significant economic impact on a Issued: July 16, 2015.
actions taken in this rulemaking substantial number of small entities. Nathaniel J. Davis, Sr.,
proceeding fall within the categorical V. Document Availability Deputy Secretary.
exclusions in the Commission’s In consideration of the foregoing, the
regulations for actions that are 25. In addition to publishing the full Commission amends parts 2 and 157,
clarifying, corrective, or procedural, and text of this document in the Federal chapter I, title 18, Code of Federal
for information gathering, analysis, and Register, the Commission provides all Regulations, as follows:
dissemination. Although this rule alters interested persons an opportunity to
the procedures by which companies view and/or print the contents of this PART 2—GENERAL POLICY AND
may obtain abandonment authorization document via the Internet through INTERPRETATIONS
FERC’s Home Page (http://
for certain types of facilities, it will not 1. The authority citation for part 2
www.ferc.gov) and in FERC’s Public ■
result in any additional abandonment continues to read as follows:
Reference Room during normal business
activities and therefore will not have a hours (8:30 a.m. to 5:00 p.m. Eastern
significant adverse effect on the human Authority: 5 U.S.C. 601; 15 U.S.C. 717–
time) at 888 First Street NE., Room 2A, 717z, 3301–3432; 16 U.S.C. 792–828c, 2601–
environment. Accordingly, an Washington, DC 20426. 2645, 42 U.S.C. 4321–4370h, 7101–7352.
environmental review is not necessary
26. From FERC’s Home Page on the ■ 2. Amend § 2.55 by revising the
and has not been prepared in Internet, this information is available on section heading and adding paragraph
connection with this rulemaking. eLibrary. The full text of this document (a)(3) to read as follows:
IV. Regulatory Flexibility Act is available on eLibrary in PDF and
Microsoft Word format for viewing, § 2.55 Auxiliary installations and
23. The Regulatory Flexibility Act of replacement facilities.
printing, and/or downloading. To access
1980 (RFA) generally requires a this document in eLibrary, type the * * * * *
description and analysis of agency rules docket number excluding the last three (a) * * *
that will have a significant economic digits of this document in the docket (3) Abandonment or replacement of
impact on a substantial number of small number field. auxiliary installations. Authorization to
entities. The RFA mandates 27. User assistance is available for abandon or replace auxiliary facilities
consideration of regulatory alternatives eLibrary and the FERC’s Web site during that were or could be installed under
that accomplish the stated objectives of normal business hours from FERC paragraph (a)(1) of this section is pre-
a proposed rule and that minimize any Online Support at (202) 502–6652 (toll granted under section 7(b) of the Natural
free at 1–866–208–3676) or email at Gas Act, and no reporting is required,
significant economic impact on a
ferconlinesupport@ferc.gov, or the provided that:
substantial number of small entities.
Public Reference Room at (202) 502– (i) All activities will be confined to
The SBA Office of Size Standards
areas, including temporary work space,
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develops the numerical definition of a 8371, TTY (202) 502–8659. Email the
Public Reference Room at previously authorized by the
small business. The SBA has established Commission for the construction and
a size standard for companies public.referenceroom@ferc.gov.
operation of facilities at that location;
transporting natural gas, stating that a (ii) All activities will comply with
27 See 13 CFR 121.201 for Subsector 486, NAICS
firm is small if its annual receipts (and applicable conditions on certificate
code 486210 (Pipeline Transportation of Natural
Gas). authorizations for the construction and
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![Federal Register / Vol. 80, No. 142 / Friday, July 24, 2015 / Rules and Regulations 43949
operation of facilities at that location; each customer served using the facility Renewal Tax Relief Act of 2000. The
and during the past 12 months; regulations are further updated to reflect
(iii) The abandonment or replacement (iii) Any other facility that did or that the IRS may prescribe additional
will have no adverse impact on could now qualify for automatic claim forms.
customers’ certificated services. authorization as described in DATES:
* * * * * § 157.203(b), provided the certificate Effective Date: These regulations are
holder obtains the written consent of effective on July 24, 2015.
PART 157—APPLICATIONS FOR each customer served using the facility Applicability Dates: For dates of
CERTIFICATES OF PUBLIC during the past 12 months. applicability, see §§ 301.6402–2(g),
CONVENIENCE AND NECESSITY AND (b) * * * 301.6402–3(f) and 301.6402–4(b).
FOR ORDERS PREMITTING AND (2)(i) An auxiliary facility as FOR FURTHER INFORMATION CONTACT:
APPROVING ABANDONMENT UNDER described in § 2.55(a) of this chapter Micah A. Levy, (202) 317–6832 (not a
SECTION 7 OF THE NATURAL GAS when the abandonment: toll-free number).
ACT (A) Will exceed the cost limit in SUPPLEMENTARY INFORMATION:
§ 157.208(d) for activities under the
■ 3. The authority citation for part 157 prior notice provisions; Background
continues to read as follows: (B) Will have no adverse impact on These final regulations amend current
Authority: 15 U.S.C. 717–717z. customers’ certificated services; and regulations under section 6402 of the
■ 4. Amend § 157.202 by adding a (C) Cannot satisfy the right-of-way, Internal Revenue Code (Code). Section
sentence at the end of paragraph (b)(2)(i) facility site, and work space limitations 6402 of the Code authorizes the
and revising paragraph (b)(3) to read as for the pre-granted abandonment Secretary to make credits or refunds of
follows: authority in § 2.55(a)(3). overpayments. Section 6511 provides
(ii) A replacement facility that was or the limitations period within which a
§ 157.202 Definitions. could have been constructed under taxpayer must file a claim for credit or
* * * * * § 2.55(b) of this chapter, provided the refund and restricts the ability of the
(b) * * * current cost to construct the facilities Secretary to issue a credit or refund
(2)(i) * * * Finally, for purposes of would not exceed the cost limit in unless the claim is filed by the taxpayer
abandonment under § 157.216, eligible § 157.208(d) for activities under the within that period. Section 7422
facilities include auxiliary installations prior notice provisions and the prohibits the maintenance of a suit for
that do not qualify for pre-granted certificate holder obtains the written refund until a claim has been duly filed
abandonment authority under consent of each customer served using with the Secretary. Currently,
§ 2.55(a)(3) and replacement facilities the facility during the past 12 months; § 301.6402–2(a)(2) provides generally
constructed under § 2.55(b). (iii) Any other facility that did or that a claim for credit or refund must be
* * * * * could now qualify for prior notice filed with the service center serving the
(3) Facility, for purposes of authorization as described in internal revenue district in which the
construction under this subpart, does § 157.203(c), provided the certificate tax was paid. These final regulations
not include an auxiliary facility that holder obtains the written consent of clarify that, unless otherwise directed,
qualifies for construction under § 2.55(a) each customer served using the facility the proper place to file a claim for credit
of this chapter or a replacement facility during the past 12 months. or refund is with the service center at
that qualifies for construction under * * * * * which the taxpayer currently would be
§ 2.55(b). [FR Doc. 2015–17919 Filed 7–23–15; 8:45 am] required to file a tax return for the type
* * * * * BILLING CODE 6717–01–P of tax to which the claim relates,
■ 5. Amend § 157.216 by revising irrespective of where the tax was paid
paragraphs (a)(2) and (b)(2) to read as or was required to have been paid.
follows: DEPARTMENT OF THE TREASURY These final regulations remove
outdated portions of § 301.6402–2 that
§ 157.216 Abandonment. Internal Revenue Service provided rules for claims filed prior to
(a) * * * April 15, 1968 and § 301.6402–3 that
(2)(i) An auxiliary facility as 26 CFR Part 301 provided special rules for claims for
described in § 2.55(a) of this chapter [TD 9727] credit or refund of income taxes filed
when the abandonment: before July 1, 1976, and revises the
(A) Will not exceed the cost limit in RIN 1545–BI36 reference in § 301.6402–4 to reflect the
§ 157.208(d) for activities under the threshold for referral to the Joint
Claims for Credit or Refund
automatic provisions; Committee on Taxation pursuant to
(B) Will have no adverse impact on AGENCY: Internal Revenue Service (IRS), section 6405. These final regulations do
customers’ certificated services; and Treasury. not affect § 301.6402–3T as promulgated
(C) Cannot satisfy the right-of-way, ACTION: Final regulations. in Treasury Decision 9658 (79 FR
facility site, and work space limitations 12880) (March 6, 2014). Other stylistic
for the pre-granted abandonment SUMMARY: This document contains final revisions were adopted solely to
authority in § 2.55(a)(3); regulations for filing a claim for credit conform the regulations to modern
(ii) A replacement facility that was or or refund. The regulations provide drafting style and usage.
could have been constructed under guidance to taxpayers generally as to the On June 10, 2011, the IRS published
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§ 2.55(b) of this chapter, provided the proper place to file a claim for credit or a notice of proposed rulemaking (REG–
current cost to construct the facilities refund. The regulations are updated to 137128–08) in the Federal Register (76
would not exceed the cost limit in reflect changes made by the Tax Reform FR 34017). No request for a public
§ 157.208(d) for activities under the Act of 1976, section 1210, the Internal hearing was received. The IRS received
automatic provisions and the certificate Revenue Service Restructuring and written and electronic comments
holder obtains the written consent of Reform Act of 1998, and the Community responding to the notice of proposed
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Document Created: 2018-02-23 09:25:24
Document Modified: 2018-02-23 09:25:24
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule, order on clarification. | |
| Dates | This rule will become effective October 7, 2015. | |
| Contact | Katherine Liberty, Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, (202) 502-6491, [email protected] | |
| FR Citation | 80 FR 43944 | |
| CFR Citation | 18
CFR
157 18 CFR 2 | |
| CFR Associated | Natural Gas; Administrative Practice and Procedure and Reporting and Recordkeeping Requirements |
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