[Federal Register Volume 79, Number 145 (Tuesday, July 29, 2014)]
[Proposed Rules]
[Pages 43994-43998]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-17232]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 154
[Docket No. RM14-21-000]
Natural Gas Act Pipeline Maps
AGENCY: Federal Energy Regulatory Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Federal Energy Regulatory Commission (Commission or FERC)
is proposing to amend the filing requirements for natural gas pipeline
system maps. Under current regulations, natural gas pipelines must
include a system map as part of their tariff on file with the
Commission, and file an updated map by the following April for any year
that there is a major change in the pipeline's system. Additionally,
this map must be posted on the pipeline's own Web site. In order to
reduce regulatory burden on these pipelines, the Commission proposes to
eliminate the requirement to file a map as part of the tariff, leaving
only the requirement to maintain a map on the pipeline's own Web site.
Furthermore, in order to promote transparency, the Commission
proposes to change the deadline for updating system maps. Currently, if
a pipeline experiences a major change that renders its existing map
obsolete, it must make a tariff filing no later than April 30 of the
subsequent calendar year. The Commission proposes a quarterly deadline
for updating pipeline maps.
[[Page 43995]]
DATES: Comments are due September 29, 2014.
ADDRESSES: Comments, identified by docket number, may be filed in the
following ways:
Electronic Filing through http://www.ferc.gov. Documents
created electronically using word processing software should be filed
in native applications or print-to-PDF format and not in a scanned
format.
Mail/Hand Delivery: Those unable to file electronically
may mail or hand-deliver comments to: Federal Energy Regulatory
Commission, Secretary of the Commission, 888 First Street NE.,
Washington, DC 20426.
Instructions: For detailed instructions on submitting comments and
additional information on the rulemaking process, see the Comment
Procedures Section of this document.
FOR FURTHER INFORMATION CONTACT: Damien Gaul (Technical Issues), 888
First Street NE., Washington, DC 20426, (202) 502-8008,
[email protected]. Vince Mareino (Legal Issues), 888 First Street
NE., Washington, DC 20426, (202) 502-6167, [email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background.............................................. 2
II. Discussion............................................. 5
A. Proposed Changes.................................... 5
B. Scope............................................... 10
III. Information Collection Statement...................... 13
IV. Environmental Analysis................................. 18
V. Regulatory Flexibility Act.............................. 19
VI. Comment Procedures..................................... 21
VII. Document Availability................................. 25
1. The Federal Energy Regulatory Commission (Commission or FERC) is
proposing to revise its regulations regarding the requirement that
interstate natural gas pipelines subject to our jurisdiction under the
Natural Gas Act (NGA) \1\ file the system maps as part of their
tariffs. Currently, pursuant to sections 154.103 and 154.106 of our
regulations,\2\ natural gas pipelines must have a system map in their
tariffs on file with the Commission and, pursuant to section
284.12(a)(1)(v),\3\ on the tariff section of their Web sites. In order
to reduce regulatory burden on these pipelines, the Commission proposes
to eliminate the requirement that natural gas pipelines have a system
map on file with the Commission but retain the requirement to post the
system map on their Web sites. Furthermore, in order to promote
transparency, the Commission is also proposing to change the deadline
for updating maps. Natural gas pipeline companies would be required to
update the map on their Web site within the calendar quarter of any
major system change instead of annually by April 30.
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\1\ 15 U.S.C. 717.
\2\ 18 CFR 154.103 and 154.106 (2013).
\3\ 18 CFR 284.12(a)(1)(v) (2013).
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I. Background
2. The Commission has required natural gas pipelines to include
system maps in their tariffs since 1948.\4\ The Commission made
clarifying modifications to the original regulation in 1995,\5\ and
edits to accommodate electronic tariff filing (eTariff) in 2008.\6\ The
current-day map publication regulation, 18 CFR 154.106, states: a. The
map must show the general geographic location of the company's
principal pipeline facilities and of the points at which service is
rendered under the tariff. The boundaries of any rate zones or rate
areas must be shown and the areas or zones identified. The entire
system should be displayed on a single map. In addition, a separate map
should be provided for each zone. b. [Reserved]. c. The map must be
revised to reflect any major changes. The revised map must be filed no
later than April 30 of the calendar year after the major change.\7\
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\4\ Amendment of Regulations and Approved Forms Under the
Natural Gas Act, to Prescribe Revised Rules Governing the Form,
Composition, Filing, and Posting of Rate Schedules and Tariffs for
the Transportation or Sale of Natural Gas Subject to the
Jurisdiction of the Commission, Order No. 144, 13 FR 6371, 6374
(issued Oct. 28, 1948, published Oct. 30, 1948, corrected Nov. 12,
1948).
\5\ Filing and Reporting Requirements for Interstate Natural Gas
Company Rate Schedules and Tariffs, Order No. 582, 60 FR 52,960,
FERC Stats. & Regs. ] 31,025 (1995).
\6\ Electronic Tariff Filings, Order No. 714, 73 FR 57,515, FERC
Stats. & Regs. ] 31,276 (2008) clarified, Order No. 714-A, 147 FERC
] 61,115 (2014).
\7\ 18 CFR 154.106.
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3. As with other parts of tariffs, pipeline system maps must be
filed with the Commission solely in electronic format. Order No. 714
required that all natural gas pipeline tariffs and tariff revisions,
including those concerning system maps, be filed electronically
according to a set of standards developed in conjunction with the North
American Energy Standards Board (NAESB).\8\ Moreover, under NAESB
Wholesale Gas Quadrant Standard 4.3.23, and as incorporated by
reference in section 284.12(a)(1)(v) of the Commission's
regulations,\9\ each pipeline must display its entire tariff (including
the map) on its Web site. Pipeline system maps, however, are often
created using specialized software, and can be densely populated with
data. These factors have created constraints in the ability of
pipelines to file maps as part of their electronically filed tariffs.
For example, eTariff limits the size of all individual tariff records
to 10 megabytes.\10\ Further, system maps may only be filed in one of
two electronic formats, RTF or PDF.\11\ In practice, it is technically
difficult to create and file a map in RTF. Further, pipelines have
informed Commission Staff that converting their maps to a small-size
PDF often compels them to reduce the quality of the maps.
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\8\ Order No. 714, FERC Stats. & Regs. ] 31,276 at P 1.
\9\ 18 CFR 284.12(a)(1)(v).
\10\ See Implementation Guide for Electronic Filing of Parts 35,
154, 284, 300, and 341 Tariff Filings (April 29, 2014) Data
Dictionary, Record Binary Data, available at <http://www.ferc.gov/docs-filing/etariff/implementation-guide.pdf>.
\11\ Id. at Data Dictionary, Record Content Type Code. RTF
refers to Rich Text Format which is a standardized textual formal
that can be produced by a number of word processors. PDF refers to
Portable Document Format, which is a format used for representing
documents that closely resembles the original formatting of the
document.
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4. As noted, the current regulation requires the filing of an
updated map only if there is a major change, and thus not all pipelines
have major changes requiring such a filing every year. Over the past
three years, the Commission received an average of 21 filings per year
that were exclusively pursuant to section 154.106. Additionally,
pipelines sometimes file system maps intermittently throughout the year
as part of more general tariff filings.
II. Discussion
A. Proposed Changes
5. The Commission proposes two changes to the gas pipeline map
[[Page 43996]]
regulations with the aim of promoting transparency and reducing
regulatory burden. In an effort to reduce regulatory burden, the
Commission proposes to eliminate the requirement that system maps be
filed in as part of natural gas pipeline tariffs. In the place of
system maps, the Commission proposes to require that pipelines provide
a tariff record that contains a Web site address, or uniform resource
locator (URL) reference, to the pipeline's publicly available Web site
where maps may be accessed. The Commission proposes that natural gas
pipelines post their system maps on the Informational Postings portion
of their respective Web sites in accordance with applicable NAESB
standards. Upon the adoption of this rule, NAESB should also consider
whether additional standards are needed to assure accessibility and
uniformity in the presentation of the maps.
6. The proposal to eliminate the map filing requirement effectively
renders the April 30 regulatory deadline obsolete. Thus, in order to
ensure a higher level of transparency, the Commission proposes to
require pipelines to update system maps more promptly, so that
customers and potential customers can obtain a realistic picture of the
pipeline's configuration, its zone boundaries, and the areas to which
its rates apply. While zone boundaries do not often change, the markets
pipelines serve do change more frequently as pipelines add laterals,
extend mainlines, abandon plant or change operations. Requiring
pipelines to update their maps in the calendar quarter that they
implement a major system change will enhance transparency by ensuring
that shippers have an accurate depiction of the pipeline in a timelier
manner.
7. Pursuant to the Commission's current regulatory structure,
pipelines must already provide new tariff language or maps in
advance.\12\ While we continue to encourage such promptness, for the
purposes of section 154.106, the Commission proposes to reduce the
current lag period to a calendar quarter.\13\ Because it is relatively
rare for pipelines to engage in major changes that require new maps
more than once a year, this change should only slightly increase the
number of Web site map updates but it will increase the public's
confidence that a pipeline's map is up-to-date and relevant.
Furthermore, connecting map update deadlines to the calendar quarter
will assist those pipelines that prefer specified calendar dates for
their compliance obligations. Accordingly, the Commission proposes to
define the new deadline as follows (new language in bold): ``The map
must be revised to reflect any major change no later than the end of
the calendar quarter of the major change.''
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\12\ Currently, section 4 of the Natural Gas Act obligates
pipelines to announce the proposed tariff changes to terms,
conditions, and rates at least 30 days before the change goes into
effect. Pipelines often include maps with these filings in order to
meet the burden of demonstrating justness and reasonableness. Most
filings under section 7 of the Natural Gas Act expressly require a
map, as per Commission regulations. E.g., 18 CFR 157.208, 157.211,
157.213, 157.214, 157.215, 157.216 (2013).
\13\ ``Calendar quarter'' has its standard meaning, as used,
e.g., in 18 CFR 141.400 and 284.126 (2013): January 1 through March
31, April 1 through June 30, July 1 through September 30, and
October 1 through December 31.
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8. Furthermore, just as all tariff records, including tariff maps,
must have an effective date under the current regulations, the
Commission will also require Web site maps to display an effective
date. Pipelines are also permitted to display maps showing past,
future, or hypothetical operations, so long as these maps are clearly
labeled as such.
9. The Commission is taking this action as part of our commitment
to continually review our regulations and eliminate those requirements
that impose an unnecessary burden on regulated entities. We find that
our proposal to have pipelines incorporate the system map by reference
to a location on their Web sites will retain all of the transparency
and consumer safeguards embodied in the Commission's existing
regulations. However, it will eliminate approximately 21 filings each
year, and the concomitant technical burdens of conforming maps to the
eTariff requirements, thereby reducing the regulatory burden on the
pipelines and the Commission.
B. Scope
10. The Commission emphasizes that the only change contemplated by
this Proposed Rule is to the filing requirements for system maps in the
eTariff system, sections 154.103 and 154.106 of the Commission's
regulations. Other filing requirements, including the system flow
diagrams and maps in Form 567,\14\ Exhibits F and G,\15\ and Exhibits V
and Z,\16\ are unchanged and are not the subject of this proceeding.
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\14\ 18 CFR 260.8 (2013).
\15\ 18 CFR 157.14(a)(6) through (9) (2013).
\16\ 18 CFR 157.18(c) and (g) (2013).
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11. Additionally, this Proposed Rule does not affect the
substantive content of the map, as defined in the existing regulation
(e.g., ``general geographic location'' and ``the boundaries of any rate
zones or rate areas must be shown''). Nor does it affect the triggering
event for filing a new map (i.e., ``major change''). By freeing
pipelines of the need to convert their maps into small-sized RTF or PDF
files, the Commission predicts that the overall quality of pipeline
maps will improve without the need for prescriptive regulation.
12. The Commission proposes that, on the first day of the calendar
quarter that starts 90 days after the Final Rule is published in the
Federal Register, all pipelines would file a compliance tariff filing.
This compliance filing would revise their respective tariffs to remove
their system maps and provide the Web site address or URL reference.
Assuming that pipelines do not change their URL reference, all future
map updates should be able to be made without need for making any
filing with the Commission.
III. Information Collection Statement
13. The following collections of information contained in this
proposed rule are being submitted to the Office of Management and
Budget (OMB) for review under section 3507(d) of the Paperwork
Reduction Act of 1995, 44 U.S.C. 3507(d).
14. The Commission solicits comments on the Commission's need for
this information, whether the information will have practical utility,
the accuracy of the provided burden estimates, ways 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.
15. The following burden estimates reflect the time necessary for
respondents to update their tariffs according to this proposed rule, as
well as the burden reduction as respondents will no longer have to file
system map adjustments. Also, there is a small burden increase to
account for the proposed requirement that pipelines update their system
maps on a more frequent basis than annually. The Commission bases the
estimated number of respondents on the number of Natural Gas Act
jurisdictional companies with tariffs on file, accounting for companies
that have waivers. The Commission assumes that in the first year the
only difference in burden for respondents is to make the one time
tariff changes estimated at eight hours per respondent. In each year,
starting in the second, the Commission estimates that approximately 21
respondents per year will experience a four hour reduction in
[[Page 43997]]
burden from no longer filing system map adjustments with the
Commission. Also starting in the second year, the Commission estimates
that approximately four respondents will see an increase of four hours
per year in order to update their maps more frequently. The following
table shows the proposed rule burden hour impact.
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Total number Burden hours Total annual Total annual
of responses per response burden hours cost \17\
(A) (B) (C) = (A)*(B) =(C)*($/hour)
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One-time tariff filing (year 1)................. 165 8 1,320 $168,960 ($128/
hr)
Burden Reduction (year 2 and beyond)............ 21 4 -84 -$5,124
($61/hr)
Additional burden for more frequent map updates 4 4 16 $976
(year 2 and beyond)............................ ($61/hr)
Total--Year 1............................... 165 8 1,320 $168,960
Total--Year 2 and beyond.................... -17 4 -68 -$4,148
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\17\ The estimates for Total Annual Cost are derived using the
following formula: Total Annual Burden Hours * $ per Hour = Total
Annual Cost. For the one-time tariff filing the hourly loaded (wage
plus benefits) wage is $128 and is based on the loaded wage of an
attorney. For the burden reduction and additional updates the hourly
loaded wage is $61 and is based on the loaded wage of a civil
engineer and a computer/math specialist. The hourly wage figures
come from the Bureau of Labor Statistics (BLS) at <http://www.bls.gov/oes/current/naics2_22.htm> and the benefits are
calculated using BLS information at <http://www.bls.gov/news.release/ecec.nr0.htm>. Each response to the proposed regulation
in Column A is expected to correspond to a unique respondent. As a
result, total number of responses equals the expected total number
of respondents.
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Title: FERC-545, Gas Pipeline Rates: Non Formal.
Action: One-time filing and reduced future filings.
OMB Control Number: 1902-0154.
Respondents: Natural Gas Pipelines.
Frequency of Responses: One-time implementation and future
reduction in number of responses. Responses are mandatory.
Necessity of Information: The proposals in this Proposed Rule
would, if implemented, reduce the burden of interstate natural gas
pipelines resulting from compliance with the Commission's regulations.
Internal Review: The Commission has reviewed the requirements
pertaining to proposed modification of the Commission's regulations and
made a preliminary determination that the proposed revisions are
necessary to reduce the burden imposed by the Commission on the natural
gas industry. The Commission has assured itself, by means of its
internal review, that there is specific, objective support for the
burden estimates associated with the information requirements.
16. 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].
17. Comments concerning the collection of information and the
associated burden estimate, should be sent to the Commission in this
docket 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) 395-4638, fax: (202) 395-4718].
IV. Environmental Analysis
18. 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.\18\ The
Commission has categorically excluded certain actions from these
requirements as not having a significant effect on the human
environment.\19\ The actions proposed here fall within categorical
exclusions in the Commission's regulations for rules that are
clarifying, corrective, or procedural, for information gathering,
analysis, and dissemination, and for sales, exchange, and
transportation of natural gas that requires no construction of
facilities.\20\ Therefore, an environmental assessment is unnecessary
and has not been prepared as part of this NOPR.
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\18\ Regulations Implementing the National Environmental Policy
Act of 1969, Order No. 486, FERC Stats. & Regs. ] 30,783 (1987).
\19\ 18 CFR 380.4 (2013).
\20\ See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(27)
(2013).
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V. Regulatory Flexibility Act
19. The Regulatory Flexibility Act of 1980 (RFA) \21\ generally
requires a description and analysis of final rules that will have
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 Small Business Administration's (SBA) Office of Size
Standards develops the numerical definition of a small business.\22\
The SBA has established a size standard for pipelines transporting
natural gas, stating that a firm is small if its annual receipts are
less than $25.5 million.\23\
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\21\ 5 U.S.C. 601-612.
\22\ 13 CFR 121.101 (2013).
\23\ 13 CFR 121.201, subsection 486.
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20. The changes proposed here only impact interstate pipelines.
Approximately 165 entities would be potential respondents subject to
data collection FERC-545 reporting requirements. More than half of
these entities are large entities. Using 2013 revenue data from the
Form 2 and 2A, the Commission estimates that 19 percent or 26 total
pipelines not affiliated with larger companies had annual revenues of
less than $25.5 million. Moreover, these changes are designed to
benefit all customers, including small businesses. The Commission
estimates that the one-time cost per small entity is $1,024.\24\ In the
future, small entities should see a cost savings related to avoiding
filing requirements related to system maps. The Commission does not
consider the estimated $1,024 impact per entity to be significant.
Accordingly, pursuant to Sec. 605(b) of the RFA, the Commission
certifies that this proposed rule should not have a significant
economic impact on a substantial number of small entities.
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\24\ See the Information Collection section for further
explanation.
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VI. Comment Procedures
21. The Commission invites interested persons to submit written
comments on the proposed regulation modifications promulgated in this
NOPR, as well as
[[Page 43998]]
any related matters or alternative proposals that commenters may wish
to discuss. Comments are due September 29, 2014. Comments must refer to
Docket No. RM14-21-000, and must include the commenter's name, the
organization they represent, if applicable, and their address. Comments
may be filed either in electronic or paper format.
22. The Commission encourages comments to be filed electronically
via the eFiling link on the Commission's Web site at <http://www.ferc.gov>. The Commission accepts most standard word processing
formats. Documents created electronically using word processing
software should be filed in native applications or print-to-PDF format
and not in a scanned format. Commenters filing electronically do not
need to make a paper filing.
23. Commenters that are not able to file comments electronically
must send an original of their comments to: Federal Energy Regulatory
Commission, Secretary of the Commission, 888 First Street NE.,
Washington, DC 20426.
24. All comments will be placed in the Commission's public files
and may be viewed, printed, or downloaded remotely as described in the
Document Availability Section below. Commenters on this proposal are
not required to serve copies of their comments on other commenters.
VII. 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 the Commission's Home Page <http://www.ferc.gov and in the Commission'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 the Commission's Home Page on the Internet, this
information is available on eLibrary. The full text of this document is
available on eLibrary in PDF and Microsoft Word format for viewing,
printing, and/or downloading. To access this document in eLibrary, type
the docket number excluding the last three digits of this document in
the docket number field.
27. User assistance is available for eLibrary and the Commission's
Web site during normal business hours from the Commission's Online
Support at (202) 502-6652 (toll free at 1-866-208-3676) or email at
[email protected], or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at
[email protected].
List of Subjects in 18 CFR Part 154
Natural Gas, Pipelines, Reporting and recordkeeping requirements.
By direction of the Commission.
Issued: July 17, 2014.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
In consideration of the foregoing, the Commission proposes to amend
Part 154, Chapter I, Title 18, Code of Federal Regulations, as follows:
PART 154--RATE SCHEDULES AND TARIFFS
0
1. The authority citation for part 154 continues to read as follows:
Authority: 15 U.S.C. 717-717w; 31 U.S.C. 9701; 42 U.S.C. 7102-
7352.
0
2. Revise Sec. 154.103(a) to read as follows:
Sec. 154.103 Composition of tariff.
(a) The tariff must contain sections, in the following order: A
table of contents, a preliminary statement, a uniform resource locator
for the Internet address of a map of the system, currently effective
rates, composition of rate schedules, general terms and conditions,
form of service agreement, and an index of customers.
* * * * *
0
3. Revise Sec. 154.106 to read as follows:
Sec. 154.106 Map.
(a) The tariff must state a uniform resource locator on the
pipeline's Internet Web site, at which the general public may display
and download system map(s).
(b) The map must show the general geographic location of the
company's principal pipeline facilities and of the points at which
service is rendered under the tariff. The boundaries of any rate zones
or rate areas must be shown and the areas or zones identified. The
entire system should be displayed on a single map. In addition, a
separate map should be provided for each zone.
(c) The map must be revised to reflect any major change no later
than the end of the calendar quarter of the major change.
[FR Doc. 2014-17232 Filed 7-28-14; 8:45 am]
BILLING CODE 6717-01-P