[Federal Register Volume 70, Number 225 (Wednesday, November 23, 2005)]
[Notices]
[Pages 70801-70802]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-23139]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. PL06-2-000]


Coordinated Processing of NGA Section 3 and 7 Proceedings; Order 
Delegating Authority

Issued November 17, 2005.
    Before Commissioners: Joseph T. Kelliher, Chairman; Nora Mead 
Brownell, and Suedeen G. Kelly.

    1. Section 313 of the Energy Policy Act of 2005 (EPAct 2005) \1\ 
amends section 15 of the Natural Gas Act (NGA) \2\ to provide the 
Commission with additional authority to ensure the expeditious 
processing of natural gas project proposals. The Commission anticipates 
initiating a rulemaking proceeding in the near future to promulgate 
regulations in response to the EPAct 2005 amendments. In the interim, 
this order delegates to staff the authority to execute certain of the 
responsibilities vested with the Commission by EPAct 2005 section 313.
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    \1\ Pub. L. No. 109-58, 119 Stat. 594 (2005).
    \2\ 15 U.S.C. 717n (2000).
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Introduction

    2. EPAct 2005 section 313(c)(1) directs the Commission to establish 
a schedule for all federal permits, authorizations, certificates, 
opinions, or other approvals required for an NGA section 3 or 7 
proposal.\3\ Section 313(b)(2) then declares that ``[e]ach Federal and 
State agency considering an aspect of an application for Federal 
authorization shall cooperate with the Commission and comply with the 
deadlines established by the Commission.'' In addition, section 
313(b)(1) designates the Commission ``as the lead agency for the 
purposes of coordinating all applicable Federal authorizations and for 
the purposes of complying with the National Environmental Policy Act of 
1969'' (NEPA).\4\
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    \3\ NGA section 3 applies to projects designed to import or 
export natural gas; NGA section 7 applies to projects designed to 
transport or sell natural gas in interstate commerce.
    \4\ 42 U.S.C. 4321, et seq. (2000).
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    3. Pending issuance of regulations implementing these provisions of 
EPAct 2005, the Commission is delegating to the Director of the Office 
of Energy Projects (OEP) the authority to establish deadlines for all 
federal authorizations necessary for NGA section 3 and 7 proposals.

Background

    4. Under NGA sections 3 and 7, the Commission grants or denies 
applications for proposed natural gas projects. The construction or 
operation of natural gas projects typically require additional permits, 
authorizations, certificates, opinions, and approvals issued by other 
federal agencies and by state agencies acting pursuant to delegated 
federal authority. Approval by the Commission to proceed with a 
proposal is contingent on favorable findings by these other agencies. 
EPAct 2005 section 313(c)(1) directs the Commission to establish a 
schedule for all federal authorizations required with respect to an 
application under NGA section 3 or 7.
    5. In this role, EPAct 2005 section 313(c)(1)(A) compels the 
Commission to ``ensure expeditious completion'' of NGA section 3 and 7 
proceedings, while section 313(c) (1)(B) directs the Commission to 
``comply with applicable schedules established by Federal law.'' Thus, 
the Commission is responsible for (1) coordinating the actions of those 
federal and state agencies with authority to issue federal 
authorizations for an NGA section 3 or 7 proposal, and (2) setting 
deadlines for decisions on federal authorizations which will ``comply 
with applicable schedules established by Federal law.''
    6. Commission authorizations under NGA sections 3 and 7 normally 
trigger NEPA. NEPA aspires to ``utilize a systematic, interdisciplinary 
approach which will insure the integrated use of the natural and social 
sciences and the environmental design arts in planning and in 
decisionmaking which may have an impact on man's environment.'' \5\ 
EPAct 2005 section 313(b) clarifies the Commission's role in this 
collective, multi-agency effort, by designating the Commission as lead 
agency for the purpose of NEPA compliance for NGA section 3 and 7 
proposals.
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    \5\ 42 U.S.C. 4332(2)(A) (2000).
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Commission Response to EPAct 2005 Amendments to NGA Section 15

    7. As noted, the Commission anticipates initiating a rulemaking to 
implement the EPAct 2005 section 313 amendments to NGA section 15. 
However, the Commission believes that the processing of section 3 and 7 
project proposals filed prior to the effective date of a final rule, 
including proposals filed prior to the enactment of EPAct 2005, may 
benefit by the immediate application of the additional authority 
conferred by EPAct 2005. Therefore, by this order, the Commission 
delegates the authority described below to the Director of OEP.
    8. The Director of OEP is granted the authority to coordinate with 
federal and state agencies for the purpose of scheduling the completion 
of the analyses and decisionmaking necessary for federal authorization 
of section 3 and 7 proposals. Deadlines shall be no shorter than any 
applicable schedules established by federal law. For example, under 
section 401 of the Clean Water Act (CWA),\6\ an applicant for federal 
authorization for any activity that may result in a discharge to 
navigable waters must obtain certification from the state in which the 
discharge originates that the discharge will comply with the CWA. The 
CWA provides the state up

[[Page 70802]]

to a year to act on a request for certification. Consequently, this 
time frame will be recognized in any schedule that the Director of OEP 
may set.
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    \6\ 33 U.S.C. 1341 (2000).
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    9. With respect to the revisions to NGA section 15, we expect to 
request public comments on rules of general applicability on how best 
to coordinate and schedule agencies' efforts in processing requests for 
federal authorizations. In the meantime, the Commission expects the 
Director of OEP to exercise the authority delegated herein on a 
flexible, case-by-case basis, to section 3 and 7 proposals filed prior 
to the effective date of a final rule, including proposals filed prior 
to the enactment of EPAct 2005. The Director of OEP need not intervene 
to establish deadlines for federal authorizations in every pending 
proceeding. For example, the Director of OEP may find it serves no 
purpose to establish deadlines in proceedings that are relatively close 
to completion. Agencies or parties to a proceeding that object to 
decisions of the Director of OEP under the authority delegated herein 
may request Commission review of the Director's actions.
    The Commission orders:
    The Commission delegates to the Director of OEP the authority 
provided by EPAct 2005 to establish a schedule for all federal 
authorizations necessary for NGA section 3 and 7 proposals.

    By the Commission.
Magalie R. Salas,
Secretary.
[FR Doc. 05-23139 Filed 11-22-05; 8:45 am]
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