Federal Register / Vol. 71, No. 208 / Friday, October 27, 2006 / Rules and Regulations

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Federal Register / Vol. 71, No. 208 / Friday, October 27, 2006 / Rules and Regulations

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(AMOCs)

(f) The Manager, Fort Worth Airplane

Certification Office, FAA, Attn: Andrew

McAnaul, Aerospace Engineer, ASW–150

(c/o MIDO–43), 10100 Reunion Place, Suite

650, San Antonio, Texas 78216; telephone:

(210) 308–3365; facsimile: (210) 308–3370,

has the authority to approve AMOCs for this

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in 14 CFR 39.19.

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part 51. To get a copy of this service

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Issued in Kansas City, Missouri, on

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James E. Jackson,

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[FR Doc. E6–17828 Filed 10–26–06; 8:45 am]

BILLING CODE 4910–13–P

Before Commissioners: Joseph T. Kelliher,

Chairman; Suedeen G. Kelly, Marc

Spitzer, Philip D. Moeller, and Jon

Wellinghoff

DEPARTMENT OF ENERGY

Federal Energy Regulatory

Commission

18 CFR Parts 153, 157, 375, and 385

[Docket No. RM06–1–000; Order No. 687]

Regulations Implementing the Energy

Policy Act of 2005; Coordinating the

Processing of Federal Authorizations

for Applications Under Sections 3 and

7 of the Natural Gas Act and

Maintaining a Complete Consolidated

Record

October 19, 2006.

AGENCY: Federal Energy Regulatory

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Commission, DOE.

ACTION: Final rule.

SUMMARY: Section 313 of the Energy

Policy Act of 2005 (EPAct 2005) 1

1 Pub. L. 109–58, 119 Stat. 594 (2005).

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14:48 Oct 26, 2006

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amends section 15 of the Natural Gas

Act (NGA) 2 to provide the Federal

Energy Regulatory Commission

(Commission) with additional authority

to coordinate the processing of

authorizations required under Federal

law for proposed natural gas projects

subject to NGA sections 3 and 7 and to

maintain a complete consolidated

record of decisions with respect to such

Federal authorizations. This Final Rule

promulgates regulations governing its

exercise of this authority whereby the

Commission will establish a schedule

for the completion of reviews of

requests for authorizations necessary for

a proposed project and compile a

consolidated record to be used in the

event of review of actions by the

Commission and other agencies in

responding to requests for

authorizations necessary for a proposed

project.

DATES: Effective Date: The rule will

become effective December 26, 2006.

FOR FURTHER INFORMATION CONTACT:

Gordon Wagner, Office of the General

Counsel, Federal Energy Regulatory

Commission, 888 First Street, NE.,

Washington, DC 20426;

gordon.wagner@ferc.gov; (202) 502–

8947.

Lonnie Lister, Office of Energy

Projects, Federal Energy Regulatory

Commission, 888 First Street, NE.,

Washington, DC 20426;

lonnie.lister@ferc.gov; (202) 502–8587.

William O. Blome, Office of the

General Counsel, Federal Energy

Regulatory Commission, 888 First

Street, NE., Washington, DC. 20426;

(202) 502–8462.

SUPPLEMENTARY INFORMATION:

1. On May 18, 2006, the Commission

issued a Notice of Proposed Rulemaking

(NOPR) in Docket No. RM06–1–000,3

requesting comments on proposed

regulations to implement section 313 of

the Energy Policy Act of 2005 (EPAct

2005).4 EPAct 2005 section 313 amends

the Natural Gas Act (NGA) to provide

the Commission with the authority (1)

to set a schedule for Federal agencies,

and state agencies acting under federally

delegated authority, to reach a final

decision on requests for Federal

authorizations necessary for proposed

NGA section 3 or 7 gas projects and (2)

to maintain a complete consolidated

record of all decisions and actions by

2 15 U.S.C. 717n (2005).

3 71 FR 30632 (May 30 2006); FERC Stats. & Regs.

¶ 32,601 (2006); 115 FERC ¶ 61,203 (2006).

4 Pub. L. 109–58, 119 Stat. 594 (2005).

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the Commission and other agencies with

respect to such authorizations. In this

Final Rule, the Commission considers

comments submitted in response to the

NOPR, and as a result, makes certain

modifications to the proposed

regulatory revisions.

Background

2. The Commission authorizes the

construction and operation of proposed

natural gas projects under NGA sections

3 and 7.5 However, the Commission

does not have jurisdiction over every

aspect of each natural gas project.

Hence, for a natural gas project to go

forward, in addition to Commission

approval, several different agencies

must typically reach favorable findings

regarding other aspects of the project.

To better coordinate the activities of

separate agencies with varying

responsibilities over proposed natural

gas projects, EPAct 2005 modified the

Commission’s role. Section 313 of

EPAct 2005 directs the Commission (1)

to establish a schedule for agencies to

review requests for Federal

authorizations required for a project 6

5 Under NGA section 7, the Commission has

jurisdiction over the transportation or sale of

natural gas in interstate commerce and the

construction, acquisition, operation, and

abandonment of facilities to transport natural gas in

interstate commerce. Under NGA section 3(e), the

Commission has exclusive authority to approve or

deny an application for the siting, construction,

expansion, or operation of a liquefied natural gas

(LNG) terminal. The Secretary of the Department of

Energy (DOE) has delegated to the Commission the

authority under NGA section 3 to approve or

disapprove applications for the siting, construction,

and operation of facilities to import or export

natural gas. The most recent delegation is in

Delegation Order No. 00–004–00A, effective May

16, 2006.

6 EPAct 2005 section 313 describes ‘‘Federal

authorizations’’ as decisions or actions by a Federal

agency or official, ‘‘or State administrative agency

or officer acting under delegated Federal authority,’’

granting or denying requests for permits,

certificates, opinions, approvals, and other

authorizations. The United States Environmental

Protection Agency (EPA) asks what types of state

actions would qualify as being under delegated

Federal authority. The Commission finds that a

state action qualifies as an action under delegated

Federal authority if it is an action that (1) a State

entity is permitted, approved, or directed to take

under Federal law and (2) provides the basis for a

reasoned decision on a request for a Federal

authorization. The United States Department of

Commerce, National Oceanic and Atmospheric

Administration, National Marine Fisheries Service

(NMFS) asks whether a Federal authorization

would include recommendations or biological

opinions issued subsequent to consultations under

the Magnuson-Stevens Fishery Conservation and

Management Act and Endangered Species Act

(ESA). To the extent recommendations and

opinions are necessary for a Federal agency, or state

agency acting under federally delegated authority,

to reach a decision on a request for a Federal

authorization that is needed for a proposed NGA

section 3 or 7 project to go forward, the Commission

interprets EPAct 2005’s mandate as encompassing

such recommendations and opinions as ‘‘Federal

authorizations.’’

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and (2) to compile a record of each

agency’s decision, together with the

record of the Commission’s decision, to

serve as a consolidated record for the

purpose of appeal, including judicial

review.

3. On November 17, 2005, the

Commission issued an order initially

implementing the authority conferred

by EPAct 2005 7 and delegating to the

Director of OEP the authority to set

schedules for agencies to act on requests

for Federal authorizations necessary for

natural gas projects to ensure such

requests are processed expeditiously. In

that order, the Commission stated a

subsequent rulemaking would codify

the pertinent provisions of EPAct 2005.

To that end, the May 2006 NOPR set

forth proposed regulatory revisions.

In this Final Rule, the Commission

responds to comments concerning the

NOPR, and adopts further regulatory

revisions to implement its new

responsibilities under EPAct 2005.

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Notice and Comment

4. Notice of the NOPR was published

in the Federal Register on May 30,

2006.8 Comments on the NOPR were

filed by Baker Botts, L.L.P. (Baker Botts);

Cheniere Energy, Inc. (Cheniere); City of

Fall River, Massachusetts; Coastal States

Organization; Conservation Law

Foundation; Delaware Department of

Natural Resources and Environmental

Control, Division of Soil & Water

Conservation (Delaware DNR); U. S.

Department of the Army Corps of

Engineers (Army COE); Dominion

Transmission, Inc., Dominion Cove

Point LNG, LP, and Dominion South

Pipeline Company, LP (Dominion);

Duke Energy Transmission, LLC (Duke);

United States Environmental Protection

Agency (EPA); Interstate Natural Gas

Association of America (INGAA);

United States Department of the Interior

(Interior); Islander East Pipeline

Company, L.L.C. (Islander East); Mr.

Mark Mendelson; Massachusetts Office

of the Attorney General; Massachusetts

Executive Office of Environmental

Affairs (Massachusetts EOEA); New

Jersey Department of Environmental

Protection (New Jersey DEP); Columbia

Gas Transmission Corporation,

Columbia Gulf Transmission Company,

7 Coordinated Processing of NGA Section 3 and

7 Proceedings, 113 FERC ¶ 61,170 (2005). This Final

Rule codifies this delegation of authority by

revising § 375.308, Delegations to the Director of the

Office of Energy Projects (OEP), to add a new

§ 375.308(bb), which delegates authority to the

Director of OEP to establish schedules, consistent

with Federal law, for agencies to complete their

analysis and decision making processes and issue

decisions on requests for Federal authorizations

necessary for natural gas projects.

8 71 FR 30632 (May 30, 2006).

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Crossroads Pipeline Company, Granite

State Gas Transmission, Inc., and

Central Kentucky Transmission

Company (collectively NiSource);

Oregon Coastal Management Program;

United States Department of Commerce,

National Oceanic and Atmospheric

Administration, National Marine

Fisheries Service (NMFS); and Williston

Basin Interstate Pipeline Company

(Williston).

Discussion

5. The comments raise objections to

various aspects of the proposed

regulatory revisions. In response,

various aspects of the NOPR’s proposed

revisions are modified, as discussed

below.

Electronic Submission of Information

6. There are several different events

that trigger the obligation on the part of

other agencies and officials to submit

information to the Commission. In the

NOPR, the Commission proposed all

such information be submitted

electronically, but requested that

affected agencies and officials comment

on whether electronic submission could

prove impractical. Several agencies

stated that they are not yet prepared to

transmit information by electronic

means. Consequently, to avoid any

undue hardship, while stressing its

preference to receive information via

electronic means, the Commission

removes the requirement to submit

information by electronic means.

Coordinating Federal Authorizations

When to Submit Requests for Federal

Authorizations

7. Proposed §§ 153.8 and 157.14

specify that an application filed with

the Commission for a natural gas project

under NGA section 3 or 7 must include:

A statement identifying each Federal

authorization that the proposal will require;

the Federal agency or officer, or State agency

or officer acting pursuant to delegated

Federal authority, which will issue each

authorization; the date each request for

authorization was submitted; and the date by

which final action on each Federal

authorization has been requested or is

expected.

The NOPR observed that if an

application does not include this

proposed new information statement,

the Commission may deem the

application incomplete.

8. Several commenters explain that it

is impractical, if not impossible, to

submit applications for all Federal

authorizations before or

contemporaneously with the project

application filed with the Commission.

These commenters propose instead that

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a project sponsor be permitted to file an

application with the Commission first;

list the authorizations necessary for the

new project; identify those

authorizations for which applications

have already been submitted and the

dates upon which they were submitted;

and then state the dates by which any

outstanding authorization requests will

be submitted.

9. The Commission observes that most

applications to construct major new gas

projects are filed with the Commission

after the project sponsor has

participated in the Commission’s

prefiling process. This prefiling period

affords a project sponsor, Commission

staff, and staff from other agencies the

opportunity to identify which Federal

authorizations will be needed for a

project, and ample time for the project

sponsor to prepare requests for related

Federal authorizations in advance of

filing an application with the

Commission.9 Thus, the prefiling

process can establish coordination

among the agencies responsible for

reviewing a project proposal and

diminish the chance that the

Commission might find an application

to be incomplete.

10. The Commission nevertheless

acknowledges that there may be

circumstances that preclude a project

sponsor from presenting all requests for

necessary Federal authorizations by the

time it files an application with the

Commission.10 Therefore, §§ 153.8 and

9 The NOPR noted that project sponsors that have

made use of the prefiling period and process to

prepare and submit requests for Federal

authorizations to agencies before an NGA

application is filed with the Commission have been

able to compress the time needed to obtain

Commission authorization. In large part, this is

because completion of the Commission’s

assessment of an application often rests on other

agencies reaching favorable determinations on

separate authorization requests. Dominion and

Duke are concerned that the new filing requirement

might force a project sponsor to devote undue

resources to preparing to submit requests for related

Federal authorizations at the same time as an NGA

application. The Commission believes the prefiling

process can minimize the resources needed by a

project sponsor by spacing out its submission of

authorization requests over a period of several

months.

10 Cheniere, for example, posits that an agency

may refuse to accept a request for a Federal

authorization ‘‘through no fault of the applicant.’’

Were this to occur, the project sponsor should

inform the Commission, which can then inquire as

to the circumstances. NMFS points out that with

respect to certain Federal authorizations, such as an

affirmation of compliance with the Endangered

Species Act or the National Historic Preservation

Act, the project sponsor is not in a position to

submit an authorization request, since a request to

initiate consultation with the responsible agency

must be submitted by the Commission. The

Commission notes this does not relieve the project

sponsor of its obligation, as described in Part 380

of the existing regulations, to develop and submit

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Continued

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157.14 of the Commission’s regulations

will be modified to provide for a

sponsor to explain why requests for

Federal authorizations remain

outstanding and state anticipated dates

for submitting such requests. A project

sponsor will now be required to state

‘‘the date each request for authorization

was submitted; why any request has not

been submitted and the date submission

is expected; and the date by which final

action on each Federal authorization has

been requested or is expected.’’ For

requests that remain outstanding at the

time an application is filed, the

Commission will review the reasons

given, the projected dates of submission,

and an applicant’s interactions with the

agencies. The Commission may then

accept the application for consideration,

and based on the state of documents and

studies needed to support prospective

authorization requests, accept the

projected submission dates as a basis for

establishing a schedule.

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Determining a Schedule for Federal

Authorizations

11. Initially, upon receiving an

application, the Commission issues a

notice ‘‘within 10 days of filing,’’ in

accordance with § 157.9 of its

regulations,11 or rejects the application

in accordance with § 157.8 of its

regulations. In issuing a notice of an

application, the Commission, or the

Director of OEP acting pursuant to

delegated authority, may also declare a

schedule for final decisions on

outstanding requests for Federal

authorizations. When a schedule is

established, it will comply with

agencies’ applicable schedules

established by Federal law.12 The NOPR

stated that in the event the Commission

or the Director of OEP does not set a

schedule for a particular project in the

notice or at a later date, the default

deadline for decisions by those agencies

without applicable schedules

established by Federal law will be no

all necessary technical information. Baker Botts and

INGAA call attention to difficulties that may be

presented by compelling a project sponsor to file a

permit under the Clean Air Act contemporaneously

with an NGA section 3 or 7 application. Such

difficulties should be alleviated by the

modifications that this Final Rule makes to the

filing requirements as proposed in the NOPR.

Provided a project sponsor presents good cause for

not submitting a particular authorization request by

the time an application is submitted, the

Commission stands ready to accept the application.

11 Section 157.9 is revised by this Final Rule to

state that in calculating this deadline, only days

during which the Commission is open for business

are counted.

12 In response to a query by NMFS, the

Commission states it interprets the reference in

EPAct 2005 section 313(c)(1)(B) to ‘‘Federal law’’ to

consist of schedules specified either in the United

States Code or in the Code of Federal Regulations.

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14:48 Oct 26, 2006

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later than 90 days after the issuance of

the Commission’s final environmental

document on the proposed project, or if

no environmental document is issued,

then no later than 90 days after issuance

of a final order.

12. Commenters point out that if no

schedule is included in the notice of an

application, agencies are left to wonder

whether a project-specific schedule will

be issued at some later date, or whether

silence indicates the default deadline

applies. The Commission acknowledges

the desirability of informing agencies in

a timely manner of the schedule that

will apply in each case. Accordingly,

the Commission will adopt a different

procedural approach, as described

below.

13. The NOPR proposed requiring that

agency action on authorization requests

be completed within 90 days of the

issuance of the Commission’s final

environmental document in a

proceeding, or if an environmental

document were not prepared, then

within 90 days of the issuance of a final

Commission order. Previously, the

Commission has not always issued its

environmental assessment (EA) at the

time of its completion. Going forward,

the Commission commits to issue its

final environmental document in every

proceeding by placing it in the public

record. In addition, going forward, the

Commission commits to issuing a notice

within 90 days of the notice of an

application describing the schedule that

will apply to the environmental review

process conducted by the Commission

to ensure compliance with the National

Environmental Policy Act of 1969

(NEPA).13 This notice of the schedule

for the environmental review will state,

among other milestones, the anticipated

date for the Commission’s completion of

its EA or final environmental impact

statement (EIS).14 This NEPA notice will

thus serve to inform agencies without a

schedule established by Federal law of

the projected date by which they are to

reach a decision on requested

authorizations, i.e., within 90 days after

the anticipated issuance of the

Commission’s EA or final EIS. Section

157.9 is revised accordingly.

14. Under this approach, there is no

longer any distinction—as was

13 42 U.S.C. 4321–4347 (2005).

14 It has been the Commission’s experience that

in processing applications for certain minor and

routine projects, the Commission’s assessment,

including its NEPA review, can often be completed

within 90 days. For such projects, the Commission

will either include a notice of the environmental

schedule in conjunction with the notice of the

application (i.e., the initial notice issued within 10

days of an application’s being filed with the

Commission), or will issue a separate notice of the

environmental schedule shortly thereafter.

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discussed in the NOPR—between a

‘‘default’’ and a ‘‘project-specific’’

schedule. For agencies without a

schedule established by Federal law, the

deadline for a final decision will follow

from the date the Commission issues its

final environmental document by

placing it in the public record, with the

anticipated issuance date stated in the

NEPA notice. However, this anticipated

issuance date is subject to change. As

explained in the NOPR, during the

course of considering an application or

a request for a Federal authorization,

unanticipated issues and circumstances

can arise and affect the time needed to

complete the review. The Commission

will monitor such changed

circumstances, and may find it

appropriate to revise the milestones set

out in its initial schedule for its

environmental review.15 If the

Commission does so, it will issue a

notice updating the milestones

associated with its environmental

review process. Any revision that alters

the date that the Commission

anticipates issuing its EA or final EIS

will correspondingly shift the projected

90-day deadline for agencies without a

schedule established by Federal law to

reach a final decision.

15. As described above, the

Commission will now issue a notice

describing the schedule for its

environmental review as a part of, or

within 90 days of, its initial notice of an

application. Therefore, agencies will

know, relatively early in the processing

of all applications, where they stand

with respect to due dates for their final

decisions on requests for Federal

authorizations.16

16. Commenters expressed the

concern that the Commission could

reach a decision on a schedule for

agency action without first considering

15 This flexibility should alleviate the concern of

commenters such as the City of Fall River,

Massachusetts, regarding situations where

apparently straightforward issues are discovered

during the course of analysis to be more complex

and time-consuming than originally anticipated.

16 The New Jersey DEP recommends that each

State agency reviewing a request for a Federal

authorization be provided with formal notice of the

date the Commission issues a final environmental

document, arguing that ‘‘[w]ithout formal notice

. . . a State agency will not know that the 90-day

review period for a decision has begun.’’ New Jersey

DEP’s Comments at 1 (July 28, 2006). In view of the

Commission’s commitment to issue a formal notice

of the schedule for the environmental review,

agencies should have adequate notice of the

anticipated start date of the last 90 days of the

review period applicable to those agencies without

a schedule set by Federal law. State and Federal

agencies and officers are urged to make use of the

Commission’s eSubscription service as a means to

monitor documents submitted in a proceeding,

updates, and the date of issuance of the

Commission’s EA or final EIS.

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agency comments on authorization

requests. As discussed below, agencies’

reports on authorization requests will

still be due within 30 days of the receipt

of such requests. In addition, it is

expected that project sponsors will

submit as many requests for necessary

Federal authorizations as possible by

the time an application is filed with the

Commission. Therefore, in most cases

the Commission will have

approximately 60 days to consider

agency comments in advance of issuing

the notice of its schedule for the

environmental review, enabling the

Commission to review agencies’ input

in setting the milestones for the

completion of the Commission’s

environmental review.17

17. The Conservation Law Foundation

requests doubling the 90 days following

the issuance of the Commission’s final

environmental document to 180 days,

whereas INGAA and interstate pipelines

promote reducing the time to 30 days.

The Conservation Law Foundation

points out that a final decision on a

request for a necessary Federal

authorization may not be reached

within 90 days of the issuance of the EA

or EIS. The Commission acknowledges

that although infrequent, this can occur.

However, the Commission expects that

project sponsors’ increasing use of the

Commission’s prefiling consultation

process, in conjunction with the

regulatory revisions instituted herein,

will eliminate such delayed

authorization decisions.18 Further, the

Commission believes that providing the

17 As noted above, in minor and routine cases

where issues that might complicate agencies’

reviews are unlikely to arise, the Commission may

issue notice of its environmental schedule in its

initial notice of the filing of an application or

shortly thereafter. However, if concerns regarding

authorization requests are subsequently raised in

agency reports to the Commission, the Commission

would then reconsider the given time frames. In

determining whether a proposal qualifies as minor

and routine, and thereby suitable for processing on

an accelerated schedule, EPA recommends the

Commission first consult with the other agencies

that will be involved. The Commission expects

such projects to be readily identifiable or identified

in the course of a prefiling consultation. The

Commission will not identify a proposal as a

candidate for accelerated processing unless it is

confident of consensus among agencies that it

merits such treatment. An agency may object to any

schedule set by the Commission, and the

Commission will reassess the grounds for its

determination.

18 The Commission notes that for the most part,

instances in which final decisions on requests for

necessary Federal authorizations have not been

reached within the 90-day time frame designated

herein, have involved authorizations for which a

schedule for agency action is established by Federal

law, e.g., a Coastal Zone Management Act (CZMA)

consistency determination or a water quality

certification under section 401 of the Clean Water

Act (CWA). Nothing in this Final Rule will alter

schedules set by Federal law.

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180 days requested would be

incompatible with the EPAct 2005

mandate to ‘‘ensure expeditious

completion’’ of NGA section 3 and 7

proceedings.19 On the other hand, the

Commission finds no reason to adopt a

30-day requirement. Comments in favor

advocate harmonizing the amount of

time provided for agencies to act with

the 30 days from issuance of a

Commission order currently provided

for filing a request for rehearing or

accepting a certificate. The Commission

sees no need to do so, as there is no

evidence that project sponsors are

currently hindered in reaching

decisions on whether to seek rehearing

of the Commission’s orders or accept a

certificate when other agencies take

more than 30 days after an order to

complete action on authorization

requests. The Commission believes that

the 90 days provided strikes an

appropriate balance between providing

adequate time for agencies’ deliberation

and avoiding delay to project sponsors.

18. The NOPR observed that:

In some cases—for example, when there is

a demonstrated need to have a new natural

gas project in service by a certain date—the

Commission may set deadlines that are

shorter than the maximum times permitted

under Federal law. In such cases, the

Commission recognizes that compliance with

its specified deadlines would be voluntary

for agencies with deadlines determined by

Federal law.20

19. Several commenters contend this

observation conflicts with Federal law.

In setting a schedule for agencies to

conclude their reviews of requests for

Federal authorization, the Commission

has no ability to contract or expand a

schedule established by Federal law.

Consequently, there can be no conflict

between a schedule set by the

Commission and a schedule set by

Federal law.21 The Commission’s

observation in the NOPR was no more

than an acknowledgment of current

practice. Agencies frequently complete

their review of certain project

proposals—most often for modest and

uncontroversial facilities—well in

19 EPAct 2005 section 313(c)(1)(A) (2005).

20 71 FR 30632 at 30635 (May 30, 2006); FERC

Stats. & Regs. ¶ 32,601 at 32,558 (2006); 115 FERC

¶ 61,203 at P 17 (2006).

21 Baker Botts raises a related issue in requesting

clarification that an agency presented with an

authorization request must not be permitted to

await the outcome of another agency’s action prior

to commencing its own review. While such an

approach might be viewed as contrary to EPAct

2005’s expressed intent to expedite the review

process for proposed gas projects, provided the

agency in waiting is able to meet its deadline to

reach a final decision—be it established by Federal

law or by the Commission—there would not

necessarily be cause to seek to compel the

recalcitrant agency to commence its review sooner.

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62915

advance of deadlines allotted by Federal

law. The NOPR stated the aspiration

that agencies might continue to do so,

recognizing that in exercising its new

authority to set schedules, the

Commission can only encourage

agencies to act in advance of deadlines

set by Federal law, it cannot compel

them to do so.

20. The Army COE states that the

deadlines established by the

Commission for final agency action will

be ‘‘voluntary and non-binding.’’ 22 This

would be the case if, as discussed above,

the schedule set by the Commission

calling for a shorter time frame did not

meet the EPAct 2005 requirement that it

‘‘comply with applicable schedules

established by Federal law.’’ 23

However, if an agency without a

schedule established by Federal law

fails to meet a deadline set by the

Commission, this ‘‘failure of the agency

to take action * * * in accordance with

the Commission schedule established

pursuant to section 15(c) shall be

considered inconsistent with Federal

Law,’’ and as a result, can be brought to

the attention of the United States Court

of Appeals, which can ‘‘remand the

proceeding to the agency to take

appropriate action consistent with the

order of the Court’’ by the ‘‘schedule

and deadline for the agency to act on

remand’’ that will be set by the court.24

Informing the Commission Upon

Receipt of an Authorization Request

21. New § 385.2013 specifies that

within 30 days of receiving an

authorization request, an agency must

inform the Commission of: (1) Whether

the agency deems the application to be

ready for processing and, if not, what

additional information or materials will

be necessary to assess the merits of the

request; (2) the time the agency will

allot the applicant to provide the

necessary additional information or

materials; (3) what, if any, studies will

be necessary in order to evaluate the

request; (4) the anticipated effective date

of the agency’s decision; and (5) if

22 Army COE’s Comments at 3 (July 31, 2006).

23 EPAct 2005 section 313(c)(1)(B) (2005).

24 EPAct 2005 section 313(d)(2) and (3). Note this

described civil action for the review of an agency’s

alleged failure to act on a requested authorization

does not apply to CZMA determinations, since the

Department of Commerce, not a Federal court, is the

body to review a failure to act on, or the outcome

of, a CZMA request. This section of EPAct 2005 was

recently discussed and applied in Islander East

Pipeline Co. LLC v. Connecticut Department of

Environmental Protection, Docket No. 05–4139–ag

(2d Cir. Oct. 5, 2006); the court found a State agency

acting under delegated Federal authority had not

conducted a complete and reasoned review of a

request for a Federal authorization, and required the

state agency to either do so within 75 days or

abdicate its delegated Federal authority.

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applicable, the schedule set forth by

Federal law for the agency to act.

Further, if an agency asks for additional

information, the agency is to provide the

Commission with a copy of its data

request.25

22. Commenters claim that 30 days is

an unreasonably short time to be able to

render a meaningful assessment of an

authorization request. The Commission

recognizes that 30 days will often be

insufficient for agencies to reach

definitive conclusions on each of the

stipulated aspects of an authorization

request. But that is not the intent.

Instead, the information submission is

intended to give the Commission an

overview to enable it to determine a

realistic timetable for the environmental

review process. The Commission

recognizes that agencies’ reports will

necessarily be provisional and subject to

change, and will take this into account

both when first determining a schedule

for its NEPA review, and thereafter, to

take into account agencies’ progress in

processing authorization requests.

23. For the purpose of measuring the

time for an agency to act on an

authorization request, in the NOPR the

Commission explained the clock begins

to run on the day a request is submitted

to the agency. Interior questions

whether this would be the day a request

is sent or the day it is received; the

Commission clarifies that the day the

agency receives a request is the first day

counted. This is unlikely to be the day

an agency takes official notice that a

complete application has been received

and is ready for processing; rather, this

will be the first day an agency is in

receipt of a formal written request by a

project sponsor for an authorization

needed for a prospective NGA section 3

or 7 project.

24. Commenters are concerned with

the prospect that an agency might

receive a cursory authorization request

that could not be evaluated absent

additional information. The NOPR

stated that if an agency deems a request

to be incomplete, and the project

sponsor fails to provide the necessary

information in time for the agency to

reach a decision by the Commission’s

scheduled deadline, then the agency

25 This establishes the minimum information

required of an agency. EPA, Duke, and Islander East

suggest a more collaborative approach to establish

a schedule. To this end, the Commission invites

agencies to go beyond the requisite minimum and

provide additional information, which the

Commission will consider in exercising its

scheduling responsibilities. Further, in determining

a schedule appropriate to a particular application,

Commission takes into account not only agencies’

input but also the project sponsor’s proposed

construction schedule and in-service date.

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may deny the request.26 In turn, the

Commission may deny the application

before it, or authorization to commence

construction, due to the project

sponsor’s failure to obtain a necessary

Federal authorization. The Commission

reiterates that whether an agency finds

a request complete has no bearing on

the agency’s allotted response time.

That said, the Commission does not

expect to have to frequently reject NGA

applications due to imperfections in

requests for related Federal

authorizations in view of the decision to

revise the procedural schedule, as

described above, to tie agencies’

deadlines to issuance of the EA or final

EIS. This approach to scheduling should

give agencies and applicants adequate

advance notice of when decisions on

requests for Federal authorizations will

be due, and motivate project sponsors to

make all necessary information

available in order for agencies to reach

timely decisions on the merits.

25. The Army COE asks if submitting

an electronic copy to the Commission of

the agency’s response to a project

sponsor’s authorization request would

satisfy the § 385.2013 reporting

requirement. It would, provided the

submission contains the specified

information; moreover, as discussed

herein, submission to the Commission

need not be by electronic means.

Regardless of whether an agency’s

submission is made electronically or by

paper copy, it should be filed in the PF

or CP docket number, if available,

assigned to the project sponsor’s

application to the Commission.

Procedural Clarifications

26. Once an application is filed with

the Commission and a schedule is

established, if a project sponsor seeks to

make a modification to its proposal that

is material to one or more of its

requested Federal authorizations, the

project sponsor should file a description

26 This presumably would be the outcome with

respect to an authorization required for a project if,

as the Oregon Coastal Management Program and

Coastal States Organization speculate, the agency is

unable to obtain all the information needed to make

an appropriate assessment of the proposal in time

to meet the scheduled deadline for a final decision.

Dominion requests that if an agency informs the

Commission that a project sponsor has not

adequately supported its request, then ‘‘the

Commission will give the applicant an opportunity

to respond and cure the alleged deficiencies.’’

Dominion’s Comments at 11 (July 31, 2006). In the

event of a disagreement regarding the adequacy of

the contents of a request for a Federal authorization,

the Commission may find reason to revise an

agency’s deadline for a final decision. However,

although the Commission implores project sponsors

and agencies to work cooperatively, it cannot

compel them to do so. An agency retains the

discretion to reject a request on the grounds that

information necessary to reach a decision is lacking.

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of the modification with the

Commission—regardless of whether the

Commission has approved the

application or whether the modification

would require amendment of the

proposal before the Commission.

NiSource requests the Commission

clarify that a material modification

would include a modification to an

aspect of the proposal that would

substantially change the overall

environmental impacts. The

Commission accepts this

characterization. Following a project

sponsor’s notice to the Commission of a

material modification, it will be within

the discretion of the Director of OEP to

determine whether the modification

will make it impossible for an agency to

reach a final decision on a request for

a Federal authorization within 90 days

of the issuance of the Commission’s

final environmental document.27 If so,

pursuant to § 375.308, the Director of

OEP may establish a revised, separate

deadline for a final decision by that

agency. Finally, a material modification

to a project pending approval by the

Commission may merit revising and renoticing the schedule for the

environmental review. The schedule for

agencies to complete their reviews

would then be adjusted in accordance

with the revised schedule for

completing the NEPA process.

27. The New Jersey DEP suggests that

in submitting a request for a necessary

Federal authorization for an NGA

section 3 or 7 project, the project

sponsor identify the request as such.

The Commission endorses this

suggestion, and urges project sponsors

to include the Commission’s applicable

PF or CP docket number, if available, in

its authorization request. Identifying the

proposed project in this manner, and

informing the agency that the request is

being submitted in conjunction with an

application to the Commission, will

alert the agency of the need to inform

the Commission of its receipt of the

request, pursuant to new § 385.2013.

Agencies, in turn, in submitting a report

to the Commission on the status of a

requested Federal authorization, should

identify the party submitting the

request, identify the proposed project,

and include, if available, the applicable

PF or CP docket number.

27 As one such instance, the Army COE describes

circumstances where a project sponsor made a

material modification that impacted the

authorization request under consideration by the

Army COE after the Commission’s final EIS was

completed. Army COE Comments at 3 (July 31,

2006). In such a case, the project sponsor should

inform the Commission, and where appropriate, a

revised, separate deadline will be established for

the affected agency.

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28. The New Jersey DEP and Delaware

DNR propose making the project

sponsor, rather than the agency

receiving a request for a Federal

authorization, responsible for

submitting to the Commission the

agency’s initial 30-day status report and

any data requests. The Commission sees

disadvantages in having the project

sponsor assume this responsibility. In

part, the aim of the 30-day report is to

open, or extend, the dialogue between

the agency and the Commission, since

the Commission expects to confer with

the responsible agencies over the course

of the NEPA review process. Initial

contact would not necessarily be

established early were the project

sponsor to act as an intermediary

between agencies and the Commission.

The burden on agencies to copy the

Commission on a data request sent to a

project sponsor is minimal; thus, the

Commission finds that rather than

having project sponsors receiving an

agency’s data request forward it on, it is

better, in terms of timing and simplicity,

to have the agency that generates the

data request submit it directly to the

Commission.

29. NMFS suggests the Commission

serve as a central point of contact

linking project sponsors to agencies.

The Commission sees no benefit to

placing itself between the company

seeking to develop a new project and

the agencies responsible for examining

aspects of the proposal. As is,

Commission staff maintains

communication with the project sponsor

and agencies from the receipt of a

request to make use of the prefiling

process through issuance of the final

decision.

30. The Commission declares, in

response to questions raised by INGAA

and Islander East, that the procedures

described herein do not apply to

activities that do not involve ‘‘an

application for authorization under

section 3 or a certificate of public

convenience and necessity under

section 7.’’ 28 For example, auxiliary

installations and the replacement of

facilities under § 2.55, and activities

authorized under the blanket certificate

provisions of Part 157, subpart F, of the

Commission’s regulations, and certain

activities undertaken in response to a

gas emergency, do not require

authorization under NGA section 3 or

issuance of a certificate under NGA

section 7.

31. When a request to authorize a

proposed project under the blanket

certificate provisions is protested, and

the protest is not either dismissed or

28 EPAct 2005 section 313(a)(3) (2005).

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14:48 Oct 26, 2006

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resolved and withdrawn, the ‘‘request

filed by the certificate holder shall be

treated as an application for section 7

authorization for the particular

activity.’’ 29 However, although a

protested blanket project proposal is

treated as an application for a casespecific certificate, once the merits of

the issues raised in the protest are

addressed, and provided the proposal is

not denied, the project is authorized

under the project sponsor’s existing

blanket certificate.30 A project sponsor

that makes a prior notice filing for a

proposed project to be constructed

under blanket certificate authority is

acting under the authority of its existing

blanket certificate issued pursuant to

NGA section 7(c). Consequently, to

undertake projects that comply with the

blanket certificates provisions, the

project sponsor does not need to obtain

an additional, separate NGA section 7(c)

certificate. Therefore, the new

regulatory requirements promulgated

herein pursuant to EPAct 2005 will not

apply to projects authorized pursuant to

the blanket certificate program.

32. The City of Fall River,

Massachusetts, the Massachusetts

EOEA, and the Massachusetts Attorney

General seek clarification on how the

Federal NEPA review and the

environmental review undertaken by a

State or the District of Columbia may

interact. The different environmental

reviews proceed on separate

jurisdictional tracks, each on its own

schedule and each arriving at its own

independent findings. However, as a

practical matter, if Federal and State

agencies are able to work in tandem, the

result can be greater efficiencies for all

concerned. Accordingly, where

possible, the Commission coordinates

its efforts with State agencies when

assessing the environmental impacts of

a proposed project and intends to

continue to do so going forward.

33. Islander East seeks clarification on

how the revised regulations will apply

to pending projects. The Commission, as

a general matter, will not apply the

§§ 153.8 and 157.14 filing requirements

for project sponsors, or the § 385.2013

reporting requirements for agencies, to

applications filed prior to the effective

date of this rule. That said, as noted

above, the Director of OEP currently has

delegated authority to establish

schedules in pending proceedings,31

and if there is cause to do so, the

Director of OEP may establish a

29 18 CFR 157.205(f) (2006).

30 See, e.g., Texas Eastern Transmission Corp., 76

FERC ¶ 61,178 (1996).

31 See note 7.

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62917

schedule applicable to an ongoing

proceeding.

34. Mr. Mark Mendelson is concerned

that the Commission is creating a

‘‘standardized’’ schedule that will not

allow for an adequate assessment of

safety risks and long-term project

impacts of proposed gas projects on

individuals and communities. Mr.

Mendelson expresses general

dissatisfaction regarding the content,

timing, and availability of information

concerning proposed projects. He

contends that affected individuals do

not always receive adequate notice of

proposed projects and suggests all

potential stakeholders be notified by

mail via the United States Postal Service

of potential hazards or risks in their

general locale posed by a proposed

project.

35. The Commission’s new reporting

requirements and commitment to issue

a notice of the environmental review

schedule should serve to inform

potentially interested persons of a

pending project proposal. The

Commission expects that its authority to

establish schedules will lead to tailoring

milestones appropriate to the

particularities of proposed projects, and

not to a one-size-fits-all standard. Mr.

Mendelson’s proposal to review and

revise the existing public notice

requirements is beyond the scope of and

is not germane to the matters being

addressed in this rulemaking

proceeding. However, any affected

landowner that does not receive notice

of a proposed project in a docketed

proceeding as specified in the

Commission’s regulations, or any

individual that suspects the public

notice provided is procedurally

insufficient or substantively incomplete,

can bring such concerns to the

Commission’s attention and the specific

circumstances will be investigated.

Consolidated Record

36. Section 313 of EPAct 2005 directs

the Commission to ‘‘maintain a

complete consolidated record of all

decisions made or actions taken by the

Commission or by a Federal

administrative agency or officer (or State

administrative agency or officer acting

under delegated Federal authority) with

respect to any Federal authorization.’’

37. The NOPR proposed to require

agencies and officers issuing decisions

or approvals necessary for proposed

projects under NGA sections 3 and 7 to

provide the Commission with a copy of

the final decision reached or action

taken, or a summary thereof, within

three days of issuance of a final decision

or action. The Commission proposed

requiring agencies and officers to file an

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index of the record, identifying all

documents and materials—including

pleadings, comments, evidence,

exhibits, transcripts of testimony,

project alternatives (including

alternative routings), studies, and

maps—relevant to the decision, within

three days of issuance of a final decision

or action.

38. Commenters object to the

proposed requirement that a copy of the

decision and an index to the record be

filed within three days of the decision

and suggest that the Commission allow

30 days for the filing of the decision and

record index. In addition to promoting

a 30-day interval, the Conservation Law

Foundation recommends the

Commission reimburse agencies for

reasonable costs incurred in providing

the index.

39. The Commission accepts the claim

that three days may not provide every

agency with adequate time to organize

and send the requested information—

although, if an agency maintains and

updates its index throughout the course

of its proceeding, all it need do when a

decision is issued is add the decision,

or a summary thereof, to the index and

submit it to the Commission. The

Commission anticipated agencies’

submission of the requested information

would be merely ministerial, i.e., that

the information would be available and

electronically transmittable—or at least,

easily duplicated and then sent—on the

same day a final decision was reached.

Commenters persuasively argue that this

is not the case. In any event, the

Commission does not believe that it is

necessary to receive an agency’s

information within three days of a final

decision in order to satisfy the EPAct

2005 mandate to maintain a complete

consolidated record. Accordingly, the

Final Rule revises the reporting

requirement to provide agencies and

officers 30 days, not three, to submit a

final decision, or summary thereof, and

index to the Commission. Further, while

the Commission encourages electronic

submissions, the proposed regulations

are modified to provide the option to

make paper filings with the

Commission.32 In view of this

modification to the means of filing, the

Commission will modify the time

provided for agencies to file a copy of

data requests with the Commission,

extending it from three days to 10

business days.

40. The Commission finds no cause to

adopt the Conservation Law

32 As is currently the case, agencies will be

expected to conform their filings to the

requirements of 18 CFR 385.2003, to the extent that

they are able.

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Jkt 211001

Foundation’s request to provide

reimbursement to agencies for expenses

related to compliance with the

provisions of this rule. Compliance is

mandatory pursuant to the authority

provided to the Commission by EPAct

2005. Further, in view of the revision

above regarding the time permitted and

means of submission, and the

clarification below regarding the

contents of the index, the Commission

expects the additional cost incurred by

agencies to meet these new reporting

requirements will not be unduly

burdensome.

41. Commenters’ objections to

submitting an index appear to stem in

part from an overly broad interpretation

of what this index must include. The

Commission clarifies that the index

need not summarize the contents of

each item in the agency’s record; rather,

the index can be any method of notation

capable of identifying each item in the

record sufficiently to allow a reviewing

body to select items of relevance to an

issue on appeal. The Oregon Coastal

Management Program observes that it

typically relies on and references the

outcome of multiple state and local

actions, but does not include in its

record the underlying documents that

make up the record in those other

actions. There is no need for agencies

that follow such an approach to make

any adjustment. Any methodology and

recordkeeping that an agency now

employs that is sufficient to serve as the

basis for appeals or reviews is an

acceptable ‘‘index’’ for the purposes of

the consolidated record. Note that in

filing an index, agencies should title the

submission ‘‘Consolidated Record’’ and

include a prominent reference on the

first page to the docket number applied

to the Commission proceeding which

gave rise to the request for agency

authorization.

42. Baker Botts requests the

Commission require that agencies

provide the Commission with their full

record, and not just an index thereto.

The Commission finds no cause to

require agencies to reproduce and

transmit the contents of their entire

record to the Commission. Only in the

event of appeal will there be any call to

view the original or duplicate materials,

and even then it is unlikely anything

other than a limited subset of the record

will be relevant. Therefore, provided an

index is prepared, and original materials

are retained and available for a

minimum of three years, or until an

appeal or review is concluded, there

should be no delay in producing the

portion of an agency’s record requested

by a reviewing entity.

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43. The Army COE points out that

when it issues a requested permit, the

permit with terms and conditions is sent

to the applicant, which has 60 days to

appeal the terms and conditions if it

chooses to do so; if the permit is denied,

the applicant may appeal the denial.

The Army COE asks that the date of

final agency action for purposes of

providing the record to the Commission

be ‘‘at the end of any appeals process.’’

44. The Commission expects that

individual agencies’ own regulations

will determine when their actions are

considered ‘‘final’’ and thereby start the

30-day clock for filing their decisions

and indices with the Commission.

However, the Commission will consider

a decision or action on a request for a

Federal authorization to be ‘‘final,’’ and

consequently subject to the 30-day

deadline for filing with the Commission,

if the project sponsor submitting the

request can rely on an affirmative

determination as sufficient authority to

proceed. In other words, the agency’s

deliberation must go beyond verification

that a request is complete, or a

preliminary determination, or an agency

decision that approves a project

sponsor’s application but makes its right

to proceed contingent on the outcome of

certain agency review or appeal

processes; i.e., the outcome of the

agency’s final decision or action must

grant, condition, or deny the applicant’s

requested authorization. At this point,

the 30-day period begins for an agency

to provide the Commission with a copy

of its decision, or a summary, and an

index to its record in the proceeding.

The 30-day period should permit the

Commission to receive agencies’

decisions and indices in time to compile

a complete consolidated record for the

purposes of judicial review (or in the

case of a CZMA determination, review

by the Department of Commerce).33

45. The Army COE asserts the

Commission should forward Freedom of

Information Act (FOIA) requests to

agencies, instead of preparing a

response using the consolidated record.

The Commission clarifies that FOIA

requests should be submitted directly to

the agency responsible for generating

the information in question. While an

agency’s index filed with the

33 The Commission notes that when it issues an

order granting a project sponsor a section 7

certificate or section 3 authorization under the NGA

to construct gas facilities, clearance to commence

construction generally is withheld until the project

sponsor has obtained other necessary authorizations

from other agencies. However, once such

authorizations have been obtained by the project

sponsor, the project sponsor generally is granted

clearance to commence construction,

notwithstanding any pending requests for

rehearing.

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Commission may be useful in

identifying records relevant to a FOIA

request, the Commission will not be

capable of effectively responding to

FOIA requests, or other types of

requests, that concern the substantive

matters of another agency’s proceeding.

Further, the Commission’s

responsibilities under EPAct 2005 do

not include compiling documents to

respond to FOIA requests. The

Commission does not expect to receive

or respond to FOIA requests, unless the

information sought is part of the

Commission’s own record of its

deliberations in a particular proceeding.

Information Collection Statement

46. The Office of Management and

Budget (OMB) regulations require that

OMB approve certain reporting, record

keeping, and public disclosure

(collections of information)

requirements imposed by agency

rules.34 Pursuant to OMB regulations,

the Commission is submitting these

reporting requirements to OMB for its

review and approval under section

3507(d) of the Paperwork Reduction Act

of 1995 (PRA).35 Upon approval of a

collection of information, OMB will

assign an OMB control number and an

expiration date. Respondents subject to

the filing requirements of this rule will

not be penalized for failing to respond

to these collections of information

unless the collections of information

display a valid OMB control number.

The information collection requirements

in this Final Rule are: FERC–539, FERC–

537, FERC–606, and FERC–607. These

are mandatory reporting requirements.

Public Reporting Burden

47. The Commission did not receive

specific comments concerning its

burden estimates and uses the same

estimates here in the Final Rule. Several

commenters expressed concern with the

burden that would be imposed if

information was required to be

submitted under the initially proposed

time frame. However, as discussed

herein, the Commission has taken these

comments into consideration and

extended the time frame for submitting

information.

Number of respondents

Number of responses

Hours per response

FERC–537 .......................................................................................................

FERC–539 .......................................................................................................

FERC–606 .......................................................................................................

FERC–607 .......................................................................................................

76

12

48

48

815

12

1702

1654

0.5

0.5

4.4

6.3

408

6

7,489

10,423

Totals ........................................................................................................

........................

........................

........................

18,326

Data collection

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Total Annual Hours for Collection:

18,326.

Information Collection Costs: Because

of the regional differences and the

various staffing levels that will be

involved in preparing the

documentation (legal, technical, and

support), the Commission is using an

hourly rate of $150 to estimate the costs

for filing and other administrative

processes (reviewing instructions,

searching data sources, completing and

transmitting the collection of

information). The estimated cost is

$2,748,900.

Title: FERC–539 ‘‘Gas Pipeline

Certificates: Import/Export Related;’’

FERC–537 ‘‘Gas Pipeline Certificates:

Construction, Acquisition and

Abandonment;’’ FERC–606 ‘‘Gas

Pipeline Certificates: Notification of

Request for Federal Authorization;’’ and

FERC–607 ‘‘Report on Decision or

Action on Request for Federal

Authorization.’’

Action: Data Collection.

OMB Control No.: FERC–539 (1902–

0062); FERC–537 (1902–0060); FERC–

606 and FERC–607 (To be determined).

Respondents: Natural gas pipeline

companies and state agencies and

officers.

Frequency of Responses: On occasion.

34 5 CFR 1320.11 (2006).

36 Order No. 486, Regulations Implementing the

National Environmental Policy Act, 52 FR 47897

(Dec. 17, 1987), FERC Stats. & Regs. Preambles

1986–1990 ¶ 30,783 (1987).

35 44 U.S.C. 3507(d) (2005).

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Necessity of Information: EPAct 2005

section 313 directs the Commission to

(1) establish schedules for State and

Federal agencies and officers to act on

requests for Federal authorizations

required for natural gas projects under

sections 3 and 7 of the NGA and (2)

maintain a complete consolidated

record of all decisions or actions taken

by the Commission and other agencies

and officers with respect to such

authorizations. The Commission

considers the regulatory provisions

adopted herein to be the minimum

necessary for the Commission to

implement the new authority provided

by EPAct 2005.

48. For information regarding the

requirements of the collections of

information and the associated burden

estimates, including suggestions for

reducing this burden, please send

comments to the Federal Energy

Regulatory Commission, 888 First

Street, NE., Washington, DC 20426

(Attention: Michael Miller, Office of the

Executive Director), or send e-mail to

michael.miller@ferc.gov), or to the

Office of Management and Budget

(Attention: Desk Officer for the Federal

Energy Regulatory Commission), by fax

to (202) 395–7285, or by e-mail to

oira_submission@omb.eop.gov.

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Total hours

Environmental Analysis

49. 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.36 No environmental

consideration is raised by promulgation

of a rule that is procedural in nature or

that does not substantially change the

effect of legislation or regulations being

amended.37 The regulations adopted

herein require authorizing agencies to

provide the Commission with copies or

summaries of decisions and indices to

the records of those decisions in cases

arising under the Commissions

jurisdiction under the Natural Gas Act.

These are minor procedural changes to

the Commission’s existing regulations

and do not substantially change the

effect of any legislation or regulations.

Nor do they substantially change any

regulatory requirements to which

pipeline companies or authorizing

agencies are currently subject.

Accordingly, the preparation of an

environmental document is not

required.

Regulatory Flexibility Act Certification

50. The Regulatory Flexibility Act of

1980 (RFA) 38 generally requires a

37 18 CFR 380.4(a)(2)(ii) (2006).

38 5 U.S.C. 601–612 (2005).

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description and analysis of final rules

that will have significant economic

impact on a substantial number of small

entities. The Commission is not

required to make such an analysis if

proposed regulations would not have

such an effect.

51. Although it appears that agencies

affected by the rule promulgated today

do not fall within the RFA’s definition

of ‘‘small governmental jurisdiction’’ 39

or its definition of ‘‘small entities,’’ 40

the Commission is nevertheless mindful

of costs and burdens to be imposed

upon agencies required to provide

copies of decisions and indexes to the

record in Federal authorization

proceedings. In response to commenters

that observe certain agencies may lack

the resources needed to comply with the

proposed three-day deadline for filing

and the proposed requirement for

electronic filing, the Commission is

adopting alternative requirements to

take into account the resources available

to the agencies to accommodate the

limited resources of small entities.41

The three-day deadline is extended to

30 days, and electronic filing, while still

the preferred option, is no longer

required.

52. Most of the natural gas companies

regulated by the Commission do notfall

within the RFA’s definition of a small

entity.42 Approximately 114 natural gas

companies are potential respondents

subject to the requirements adopted by

this rule. For the year 2004 (the most

recent year for which information is

available), 32 companies had annual

revenues of less than $6.5 million. The

procedural modifications enacted herein

should have no significant economic

impact on those entities—be they large

or small—subject to the Commission’s

NGA jurisdiction. In view of these

considerations, the Commission certifies

that this Final Rule’s amendments to the

regulations will not have a significant

39 5 U.S.C. 601(5) (2005) provides that ‘‘the term

‘small governmental jurisdiction’ means

governments of cities, counties, towns, townships,

villages, school districts, or special districts, with

a populations of less than fifty thousand.’’

40 5 U.S.C. 601(6) (2005) provides that ‘‘the term

‘small entity’ shall have the same meaning as the

terms ‘small business,’ ‘small organization,’ and

‘small governmental jurisdiction.’ ’’

41 5 U.S.C. 603(c)(1) and (2) (2005).

42 See 5 U.S.C. 601(3) (2005), citing section 3 of

the Small Business Act, 15 U.S.C. 623 (2005).

Section 3 of the SBA defines a ‘‘small business

concern’’ as a business which is independently

owned and operated and which is not dominant in

its field of operation. The Small Business Size

Standards component of the North American

Industry Classification System defines a small

natural gas pipeline company as one that transports

natural gas and whose annual receipts (total income

plus cost of goods sold) did not exceed $6.5 million

for the previous year.

VerDate Aug<31>2005

14:48 Oct 26, 2006

Jkt 211001

impact on a substantial number of small

entities.

Document Availability

53. 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 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 p.m. eastern time) at 888 First

Street, NE., Room 2A, Washington DC

20426. From FERC’s Home Page on the

Internet, this information is available in

the Commission’s document

management system, eLibrary. The full

text of this document is available in

eLibrary in PDF and Microsoft Word

format for viewing, printing, and

downloading. To access this document

in eLibrary, type RM06–1 in the docket

number field.

54. User assistance is available for

eLibrary and the Commission’s Web site

during normal business hours at (202)

502–8222 or the Public Reference Room

at (202) 502–8371 Press 0, TTY (202)

502–8659. E-Mail the Public Reference

Room at public.referenceroom@ferc.gov.

Effective Date and Congressional

Notification

55. These regulations are effective

December 26, 2006.

56. 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 1996.43

List of Subjects

18 CFR Part 153

Exports, Imports, Natural gas,

Reporting and recordkeeping

requirements.

18 CFR Part 157

Administrative practice and

procedure, Natural gas, Reporting and

recordkeeping requirements.

18 CFR Part 375

Authority delegations (Government

agencies), Seals and insignia, Sunshine

Act.

18 CFR Part 385

Administrative practice and

procedure, Electric power, Penalties,

Pipelines, Reporting and recordkeeping

requirements.

Frm 00046

Fmt 4700

■ In consideration of the foregoing, the

Commission amends parts 153, 157,

375, and 385, Chapter I, Title 18, Code

of Federal Regulations, as follows:

PART 153—APPLICATIONS FOR

AUTHORIZATION TO CONSTRUCT,

OPERATE, OR MODIFY FACILITIES

USED FOR THE EXPORT OR IMPORT

OF NATURAL GAS

■ 1. The authority citation for part 153

continues to read as follows:

Authority: 15 U.S.C. 717b, 717o; E.O.

10485, 3 CFR, 1949–1953 Comp., p. 970, as

amended by E.O. 12038, 3 CFR, 1978 Comp.,

p. 136, DOE Delegation Order No. 0204–112,

49 FR 6684 (February 22, 1984).

■ 2. In subpart B, § 153.4 is added to

read as follows:

§ 153.4

General requirements.

The procedures in §§ 157.5, 157.6,

157.8, 157.9, 157.10, 157.11, and 157.12

of this chapter are applicable to the

applications described in this subpart.

■ 3. In § 153.8:

■ a. The word ‘‘and’’ is removed from

the end of paragraph (a)(7);

■ b. The period is removed from the end

of paragraph (a)(8), and ‘‘; and’’ is added

in its place; and

■ c. Paragraph (a)(9) is added to read as

follows:

§ 153.8

Required exhibits.

(a) * * *

(9) Exhibit H. A statement identifying

each Federal authorization that the

proposal will require; the Federal

agency or officer, or State agency or

officer acting pursuant to delegated

Federal authority, that will issue each

required authorization; the date each

request for authorization was submitted;

why any request was not submitted and

the date submission is expected; and the

date by which final action on each

Federal authorization has been

requested or is expected.

*

*

*

*

*

PART 157—APPLICATIONS FOR

CERTIFICATES OF PUBLIC

CONVENIENCE AND NECESSITY AND

FOR ORDERS PERMITTING AND

APPROVING ABANDONMENT UNDER

SECTION 7 OF THE NATURAL GAS

ACT

■ 4. The authority citation for part 157

continues to read as follows:

Authority: 15 U.S.C. 717–717w.

■ 5. In § 157.9:

■ a. The section heading is revised;

43 5 U.S.C. 804(2) (2005).

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By the Commission.

Magalie R. Salas,

Secretary.

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Federal Register / Vol. 71, No. 208 / Friday, October 27, 2006 / Rules and Regulations

■ b. The existing text is designated as

paragraph (a) and the word ‘‘business’’

is added immediately before the phrase

‘‘days of filing’’; and

■ c. A new paragraph (b) is added, to

read as follows:

§ 157.9 Notice of application and notice of

schedule for environmental review.

*

*

*

*

*

(b) For each application that will

require an environmental assessment or

an environmental impact statement,

notice of a schedule for the

environmental review will be issued

within 90 days of the notice of the

application, and subsequently will be

published in the Federal Register.

■ 6. In § 157.14, paragraph (a)(12) is

added to read as follows:

§ 157.14

(a) * * *

(12) Exhibit J—Federal authorizations.

A statement identifying each Federal

authorization that the proposal will

require; the Federal agency or officer, or

State agency or officer acting pursuant

to delegated Federal authority, that will

issue each required authorization; the

date each request for authorization was

submitted; why any request was not

submitted and the date submission is

expected; and the date by which final

action on each Federal authorization has

been requested or is expected.

*

*

*

*

*

■ 7. In subpart A, § 157.22 is added to

read as follows:

§ 157.22 Schedule for final decisions on a

request for a Federal authorization

For an application under section 3 or

7 of the Natural Gas Act that requires a

Federal authorization—i.e., a permit,

special use authorization, certification,

opinion, or other approval—from a

Federal agency or officer, or State

agency or officer acting pursuant to

delegated Federal authority, a final

decision on a request for a Federal

authorization is due no later than 90

days after the Commission issues its

final environmental document, unless a

schedule is otherwise established by

Federal law.

PART 375—THE COMMISSION

■ 8. The authority citation for part 375

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continues to read as follows:

Authority: 5 U.S.C. 551–557; 15 U.S.C.

717–717w, 3301–3432; 16 U.S.C. 791–825r,

2601–2645; 42 U.S.C. 7101–7352.

■ 9. In § 375.308, paragraph (bb) is

added to read as follows:

14:48 Oct 26, 2006

*

*

*

*

*

(bb) Establish a schedule for each

Federal agency or officer, or State

agency or officer acting pursuant to

delegated Federal authority, to issue or

deny Federal authorizations required for

natural gas projects subject to section 3

or 7 of the Natural Gas Act.

PART 385—RULES OF PRACTICE AND

PROCEDURE

■ 10. The authority citation for part 385

continues to read as follows:

Authority: 5 U.S.C. 551–557; 15 U.S.C.

717–717z, 3301–3432; 16 U.S.C. 791a–825r,

2601–2645; 28 U.S.C. 2461; 31 U.S.C. 3701,

9701; 42 U.S.C. 7101–7352; 49 U.S.C. 60502;

49 App. U.S.C. 1–85 (1988).

■ 11. Section 385.2013 is redesignated

Exhibits.

VerDate Aug<31>2005

§ 375.308 Delegations to the Director of

the Office of Energy Projects.

Jkt 211001

as § 385.2015 and the heading of newly

designated § 385.2015 is revised to read

as follows:

§ 385.2015

Videotapes (Rule 2015).

*

*

*

*

*

■ 12. New §§ 385.2013 and 385.2014 are

added to read as follows:

§ 385.2013 Notification of requests for

Federal authorizations and requests for

further information (Rule 2013).

(a) For each Federal authorization—

i.e., permit, special use authorization,

certification, concurrence, opinion, or

other approval—required under Federal

law with respect to a natural gas project

for which an application has been filed

under section 3 of the Natural Gas Act

for a certificate of public convenience

and necessity under section 7 of the

Natural Gas Act, each Federal agency or

officer, or State agency or officer acting

pursuant to delegated Federal authority,

responsible for a Federal authorization

must file with the Commission within

30 days of the date of receipt of a

request for a Federal authorization,

notice of the following:

(1) Whether the application is ready

for processing, and if not, what

additional information or materials will

be necessary to assess the merits of the

request;

(2) The time the agency or official will

allot the applicant to provide the

necessary additional information or

materials;

(3) What, if any, studies will be

necessary in order to evaluate the

request;

(4) The anticipated effective date of

the agency’s or official’s decision; and

(5) If applicable, the schedule set by

Federal law for the agency or official to

act.

(b) A Federal agency or officer, or

State agency or officer acting pursuant

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62921

to delegated Federal authority,

considering a request for a Federal

authorization that submits a data

request to an applicant must file a copy

of the data request with the Commission

within 10 business days.

§ 385.2014 Petitions for appeal or review

of Federal authorizations (Rule 2014).

(a) For each Federal authorization—

i.e., permit, special use authorization,

certification, concurrence, opinion, or

other approval—required under Federal

law with respect to a natural gas project

for which an application has been filed

for authorization under section 3 of the

Natural Gas Act for a certificate of

public convenience and necessity under

section 7 of the Natural Gas Act, the

Federal agency or officer, or State

agency or officer acting pursuant to

delegated Federal authority, responsible

for each Federal authorization must file

with the Commission within 30 days of

the effective date of a final decision or

action on a request for a Federal

authorization or the expiration of the

time provided by the Commission or by

Federal law for a final decision or

action, the following:

(1) A copy of any final decision or

action;

(2) An index identifying all

documents and materials—including

pleadings, comments, evidence,

exhibits, testimony, project alternatives,

studies, and maps—relied upon by the

agency or official in reaching a decision

or action; and

(3) The designation ‘‘Consolidated

Record’’ and the docket number for the

Commission proceeding applicable to

the requested Federal authorization.

(b) The agencies’ and officers’

decisions, actions, and indices, and the

Commission’s record in each

proceeding, constitute the complete

consolidated record. The original

documents and materials that make up

the complete consolidated record must

be retained by agencies, officers, and the

Commission for at least three years from

the effective date of a decision or action

or until an appeal or review is

concluded.

(c) Upon appeal or review of a Federal

authorization, agencies, officers, and the

Commission will transmit to the

reviewing authority, as requested,

documents and materials that constitute

the complete consolidated record.

[FR Doc. E6–18025 Filed 10–26–06; 8:45 am]

BILLING CODE 6717–01–P

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This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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