[Federal Register Volume 89, Number 67 (Friday, April 5, 2024)]
[Proposed Rules]
[Pages 23954-23960]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-06561]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 284

[Docket No. RM96-1-043]


Standards for Business Practices of Interstate Natural Gas 
Pipelines

AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Energy Regulatory Commission proposes to amend its 
regulations to incorporate by reference, with certain enumerated 
exceptions, the latest version (Version 4.0) of Standards for Business 
Practices of Interstate Natural Gas Pipelines adopted by the Wholesale 
Gas Quadrant of the North American Energy Standards Board (NAESB).

DATES: Comments are due June 4, 2024.

ADDRESSES: Comments, identified by docket number, may be filed in the 
following ways. Electronic filing through https://www.ferc.gov/ is 
preferred.
     Electronic Filing: Documents must be filed in acceptable 
native applications and print-to-PDF, but not in scanned or picture 
format.
     For those unable to file electronically, comments may be 
filed by U.S. Postal Service mail or by hand (including courier) 
delivery.
    [cir] Mail via U.S. Postal Service Only: Addressed to: Federal 
Energy Regulatory Commission, Secretary of the Commission, 888 First 
Street NE, Washington, DC 20426.
    [cir] Hand (Including Courier) Delivery: Deliver to: Federal Energy 
Regulatory Commission, 12225 Wilkins Avenue, Rockville, MD 20852.
    The Comment Procedures section of this document contains more 
detailed filing procedures.

FOR FURTHER INFORMATION CONTACT:
Jerry Chiang (Technical Issues), Office of Energy Policy and 
Innovation, Federal Energy Regulatory Commission, 888 First Street NE, 
Washington, DC 20426, (202) 502-8786
Oscar F. Santillana (Technical Issues), Office of Energy Market 
Regulation, Federal Energy Regulatory Commission, 888 First Street NE, 
Washington, DC 20426, (202) 502-6392
Carla Pettus (Legal Issues), Office of the General Counsel, Federal 
Energy Regulatory Commission, 888 First Street NE, Washington, DC 
20426, (202) 502-8361

SUPPLEMENTARY INFORMATION:

Table of Contents

 
                                                         Paragraph Nos.
 
I. Overview..........................................                  1
II. Background.......................................                  2
III. Discussion......................................                  5
    A. Modifications to Previous Version of Standards                  9
        1. WGQ Cybersecurity Related Standards.......                  9
        2. Other Standards Modifications.............                 10
    B. Standards Proposed Not To Be Incorporated by                   15
     Reference.......................................
    C. Proposed Implementation Procedures............                 16
IV. Notice of Use of Voluntary Consensus Standards...                 23
V. Incorporation by Reference........................                 24

[[Page 23955]]

 
VI. Information Collection Statement.................                 35
VII. Environmental Analysis..........................                 42
VIII. Regulatory Flexibility Act.....................                 43
IX. Comment Procedures...............................                 46
X. Document Availability.............................                 49
 

I. Overview

    1. The Federal Energy Regulatory Commission (Commission) proposes 
to amend its regulations at 18 CFR 284.12 to incorporate by reference, 
with certain enumerated exceptions,\1\ the latest version (Version 4.0) 
of Standards for Business Practices of Interstate Natural Gas Pipelines 
adopted by the Wholesale Gas Quadrant (WGQ) of the North American 
Energy Standards Board (NAESB) applicable to interstate natural gas 
pipelines. NAESB is an American National Standards Institute-
accredited, non-profit standards development organization formed for 
the purpose of developing voluntary standards and model business 
practices that promote more competitive and efficient natural gas and 
electric markets. On October 2, 2023, NAESB filed a notice that it had 
approved Version 4.0 to replace the currently incorporated version 
(Version 3.2) of those business practice standards (Informational 
Report).\2\ The implementation of these standards and regulations will 
promote greater efficiency and reliability of the natural gas 
industries' operations and strengthen the cybersecurity protections 
provided within the standards.\3\
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    \1\ As explained below, we are not proposing in this proposed 
rule to incorporate by reference the two new model addendums 
supporting the NAESB Base Contract for the Sale and Purchase of 
Natural Gas, NAESB WGQ Standard 6.3.1.RG Renewable Natural Gas 
Addendum and WGQ Standard 6.3.1.CG Certified Gas Addendum, included 
in the NAESB WGQ Version 4.0 package of business practice standards.
    \2\ See NAESB WGQ Business Practice Standards Version 4.0 
Report, Docket No. RM96-1-043, (Oct. 2, 2023).
    \3\ As explained below, NAESB has developed and adopted, in 
conjunction with Sandia National Laboratories, a series of business 
practice standards to strengthen the cybersecurity protections 
provided within the standards.
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II. Background

    2. Since 1996, the Commission has adopted in its regulations 
NAESB's business practice standards and communication methodologies of 
interstate natural gas pipelines to create a more integrated and 
efficient pipeline network system. These regulations have been 
promulgated in the Order No. 587 series of orders,\4\ wherein the 
Commission incorporated by reference the standards for interstate 
natural gas pipeline business practices and electronic communications 
developed by NAESB's WGQ. Upon incorporation by reference, this version 
of the standards will replace the currently incorporated version 
(Version 3.2) of those business practice standards.
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    \4\ This series of orders began with the Commission's issuance 
of Standards for Bus. Practices of Interstate Nat. Gas Pipelines, 
Order No. 587, 61 FR 39053 (July 26, 1996), FERC Stats. & Regs. ] 
31,038 (1996) (cross-referenced at 76 FERC ] 61,042).
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    3. On October 2, 2023, NAESB filed a report informing the 
Commission that it had adopted and ratified WGQ Version 4.0 of its 
business practice standards applicable to interstate natural gas 
pipelines. WGQ Version 4.0 includes business practice standards 
developed and modified in response to industry requests and directives 
from the NAESB Board of Directors. This version also includes the 
standards developed in response to the recommendations of Sandia 
National Laboratory (Sandia),\5\ which in 2019 issued a cybersecurity 
surety assessment of the NAESB standards sponsored by DOE.\6\
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    \5\ Sandia is a multidisciplinary national laboratory and 
federally funded research and development center for the U.S. 
Department of Energy's (DOE) National Nuclear Security 
Administration that supports numerous federal, state, and local 
government agencies, companies, and organizations.
    \6\ In April 2017, NAESB announced that Sandia, through funding 
provided by DOE, would be performing a surety assessment of the 
NAESB standards. As determined by Sandia and DOE, the purpose of the 
surety assessment was to analyze cybersecurity elements within the 
standards, focusing on four areas: (1) the NAESB Certification 
Program for Accredited Certification Authorities, including the 
Wholesale Electric Quadrant (WEQ)-012 Public Key Infrastructure 
Business Practice Standards, the NAESB Accreditation Requirements 
for Authorized Certificate Authorities, and the Authorized 
Certification Authority Process; (2) the WEQ Open Access Same-Time 
Information Systems suite of standards; (3) the WGQ and Retail 
Markets Quadrant internet Electronic Transport (IET) and Quadrant 
Electronic Delivery Mechanism (EDM) Related Standards Manual; and 
(4) a high-level dependency analysis between the gas and electric 
markets to evaluate the different security paradigms the markets 
employ.
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    4. The NAESB Informational Report identifies all the changes made 
to the WGQ Version 3.2 standards and summarizes the deliberations that 
led to the changes. It also identifies changes to the existing 
standards that were considered but not adopted due to a lack of 
consensus or other reasons.

III. Discussion

    5. In this notice of proposed rulemaking (NOPR), we propose to 
incorporate by reference, in our regulations, Version 4.0 of the NAESB 
WGQ consensus business practice standards, with certain exceptions.\7\ 
In the subsections that follow, we provide the summary required by the 
Office of Federal Register regulations. As an initial matter, we note 
that the WGQ Version 4.0 Standards include modifications, reservations, 
and additions to the following set of existing WGQ Standards, i.e., the 
Version 3.2 Business Practice Standards. (Each set of Business Practice 
Standards is referred to as a manual.)
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    \7\ In the discussion below we identify the NAESB WGQ Version 
4.0 Standards that we propose not to incorporate by reference.

Business Practice Standards
    Additional Standards
    Flowing Gas Related Standards
    Invoicing Related Standards
    Quadrant Electronic Delivery Mechanism Standards
    Capacity Release Related Standards
    Contracts Related Standards
    WGQ/REQ/RGQ Internet Electronic Transport

    Additionally, the WGQ Version 4.0 Business Practice Standards 
include one new manual of standards:

    Cybersecurity Related Standards

    6. We propose that compliance filings made in accordance with a 
final rule be made 120 days after issuance of a final rule in this 
proceeding or, if the compliance filing date falls on a weekend or 
holiday, on the first business day thereafter, with an effective date 
180 days from the date compliance filings are due in this proceeding 
or, if the effective date falls on a weekend or holiday, the first 
business day thereafter.
    7. As the Commission found in Order No. 587, adoption of consensus 
standards is appropriate, because the consensus process helps ensure 
the reasonableness of the standards by requiring that the standards 
draw support from a broad spectrum of industry participants 
representing all segments of the industry. Moreover, because the 
industry conducts business under these standards, the Commission's 
regulations should reflect

[[Page 23956]]

those standards that have the widest possible support. In section 12(d) 
of the National Technology Transfer and Advancement Act of 1995, 
Congress affirmatively requires Federal Agencies to use technical 
standards developed by voluntary consensus standards organizations, 
like NAESB, to carry out policy objectives or activities.
    8. We discuss below some specific aspects of NAESB's Informational 
Report.

A. Modifications to Previous Version of Standards

1. WGQ Cybersecurity Related Standards
    9. WGQ Version 4.0 added a new standards manual for NAESB 
cybersecurity-related standards. This new set of standards consolidates 
existing NAESB cybersecurity-related standards into a single manual. 
This consolidation should make the NAESB and Commission processes for 
revising NAESB cybersecurity standards easier and faster to help match 
the fast pace of changes in cybersecurity practices. These standards 
focus on strengthening the cybersecurity practices utilized by the 
industry through the mitigation of potential vulnerabilities and the 
use of secure communication and encryption methodologies.
2. Other Standards Modifications
    10. In response to industry request, Version 4.0 adds new data 
elements to the WGQ Additional Standards and Capacity Release Related 
Standards and modifies existing data elements in the Flowing Gas 
Related Standards and Invoicing Related Standards to improve 
efficiencies of business processes for transportation service providers 
\8\ and parties interacting with these entities.
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    \8\ Natural gas transportation service is provided by interstate 
pipelines, intrastate pipelines, natural gas gathering pipelines, 
and local distribution companies; all are referred to as 
``transportation service providers.''
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    11. NAESB revised the WGQ Additional Standards by adding a new data 
element, ``Cycle Indicator,'' to the data set for the Storage 
Information standard to address technical details for reporting natural 
gas storage balances and the activities that affect storage balances. 
NAESB states the new sender's option data element ``Cycle Indicator'' 
will support the reporting of storage information data for each cycle 
while also allowing parties receiving such information to distinguish 
between the data more easily for individual transactions.\9\
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    \9\ Informational Report at 4.
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    12. NAESB revised the Flowing Gas Related Business Practice 
Standards to change the ``Service Requester Contract'' data element 
from ``not used'' to ``mutually agreed,'' for allocation of natural gas 
between parties under two pre-determined allocation transaction types, 
found within the allocation matrix included as part of WGQ Standard 
2.4.3.\10\
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    \10\ The matrix identifies the data elements needed to 
communicate the results of the allocation process.
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    13. NAESB revised the WGQ Invoicing Related Standards by modifying 
the ``Charge Type Rate'' data element contained in the data set for the 
Transportation/Sales Invoice standard to allow for the identification 
of multiple rates that may be applicable for a single transaction or 
service. The modification to the data element allows transportation 
service providers to use a ``null'' value in circumstances where 
information describing the applicable charge type rate is included as 
part of miscellaneous notes. NAESB states this change will allow 
transportation service providers to make available a summary of the 
amount due for each line item of an invoice with detailed, breakout 
information regarding the applicable rate and make it easier for a 
customer to ascertain the final charge amount.\11\
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    \11\ Informational Report at 5.
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    14. NAESB revised the Capacity Release Related Standards by adding 
a new sender's option data element, ``Location Indicator Data,'' to the 
Transactional Reporting--Capacity Release standard to provide a 
mechanism for a transportation service provider to communicate the 
locations at which a discounted rate is offered as well as if the rate 
is associated with a single location, multiple locations, or all 
locations.

B. Standards Proposed Not To Be Incorporated by Reference

    15. We propose to continue our past practice \12\ of not 
incorporating by reference into our regulations any optional model 
contracts because we do not require the use of these contracts.\13\ In 
addition, consistent with our findings in past proceedings, we are not 
proposing to incorporate by reference the Wholesale Electric Quadrant/
WGQ eTariff Related Standards because the Commission has previously 
adopted and posted its standards and protocols for electronic tariff 
filings based on NAESB standards.\14\
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    \12\ See, e.g., Standards for Bus. Practices of Interstate Nat. 
Gas Pipelines, Notice of Proposed Rulemaking, 86 FR 12879 (Mar. 5, 
2021), 174 FERC ] 61,103, at P 19 (2021) (Version 3.2 NOPR).
    \13\ Id.; Standards for Bus. Practices of Interstate Nat. Gas 
Pipelines, Order No. 587-V, 77 FR 43711 (Jul. 26, 2012), 140 FERC ] 
61,036, at P 11 n.11 (2012).
    \14\ Version 3.2 NOPR, 174 FERC ] 61,103 at P 19; Elec. Tariff 
Filings, Order No. 714, 73 FR 57515 (Oct. 3, 2008), 124 FERC ] 
61,270 (2008).
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C. Proposed Implementation Procedures

    16. We propose to continue the compliance filing requirements as 
revised and prescribed in Order No. 587-V to increase the transparency 
of the interstate natural gas pipelines' incorporation by reference of 
the NAESB WGQ Standards so that shippers and the Commission will know 
which tariff provision(s) implements each standard as well as the 
status of each standard.\15\
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    \15\ Order No. 587-V, 140 FERC ] 61,036 at PP 36-39.
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    17. We propose that compliance filings made in accordance with a 
final rule be made 120 days after issuance of a final rule in this 
proceeding or, if the compliance filing date falls on a weekend or 
holiday, on the first business day thereafter, with an effective date 
180 days from the date compliance filings are due in this proceeding 
or, if the effective date falls on a weekend or holiday, the first 
business day thereafter. As the Commission found in Order No. 587-V, 
adoption of the revised compliance filing requirements increases the 
transparency of the interstate natural gas pipelines' incorporation by 
reference of the NAESB WGQ Standards so that shippers and the 
Commission will know which tariff provision(s) implements each standard 
as well as the status of each standard.\16\
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    \16\ Trans-Union Interstate Pipeline L.P., 141 FERC ] 61,167, at 
P 36 (2012) (Order No. 587-V Compliance Order).
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    18. Consistent with the Commission's practice since Order No. 587-
V, each interstate natural gas pipeline must designate a single tariff 
section under which every NAESB WGQ Standard incorporated by reference 
by the Commission is listed.\17\ For each standard, the pipeline must 
specify in the tariff section or tariff record(s) listing all the NAESB 
standards:
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    \17\ Id. P 36; Version 3.2 NOPR, 174 FERC ] 61,103 at P 21.
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    (a) whether the standard is incorporated by reference;
    (b) for those standards not incorporated by reference, the tariff 
provision that complies with the standard; or
    (c) for those standards with which the pipeline does not comply, an 
explanatory statement, including an indication of whether the pipeline 
has been granted a waiver, extension of

[[Page 23957]]

time, or other variance with respect to compliance with the 
standard.\18\
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    \18\ Shippers can use the Commission's electronic tariff system 
to locate the tariff record containing the NAESB standards, which 
will indicate the docket in which any waiver or extension of time 
was granted.
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    19. Likewise, consistent with past practice, we will post on our 
eLibrary website (under Docket No. RM96-1-043) a sample tariff format, 
to provide filers with an illustrative example to aid them in preparing 
their compliance filings.
    20. Consistent with our policy since Order No. 587-V,\19\ entities 
may request waivers under the requirements set forth in Order No. 587-V 
and the Commission will then evaluate those requests at that time.\20\
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    \19\ Order No. 587-V, 140 FERC ] 61,036.
    \20\ Order No. 587-V Compliance Order, 141 FERC ] 61,167 at PP 
4, 38 (a pipeline does not need to seek a waiver for standards that 
address business practices that the pipeline does not offer).
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    21. If the pipeline is requesting a continuation of an existing 
waiver or extension of time, it must include a table in its transmittal 
letter that identifies the standard for which the Commission granted a 
waiver or extension of time, and the docket number or order citation to 
the proceeding in which the Commission granted the waiver or extension 
of time. The pipeline also must present an explanation for why such 
waiver or extension of time should remain in force with regard to the 
WGQ Version 4.0 Standards.
    22. This continues the Commission's practice of having pipelines 
include in their tariffs a common location that identifies the way in 
which the pipeline is incorporating all the NAESB WGQ Standards and the 
standards with which it is required to comply.

IV. Notice of Use of Voluntary Consensus Standards

    23. Office of Management and Budget Circular A 119 (February 10, 
1998) provides that Federal Agencies should publish a request for 
comment in a NOPR when the agency is seeking to issue or revise a 
regulation proposing to adopt a voluntary consensus standard or a 
government-unique standard. In this NOPR, we are proposing to 
incorporate by reference voluntary consensus standards developed by the 
WGQ.

V. Incorporation by Reference

    24. The Office of the Federal Register requires agencies proposing 
to incorporate material by reference to discuss the ways that the 
materials it incorporates by reference are reasonably available to 
interested parties and how interested parties can obtain the materials. 
The regulations also require agencies to summarize, in the preamble of 
the final rule, the material that it incorporates by reference. The 
standards we are proposing to incorporate by reference consist of seven 
suites of NAESB WGQ Business Practice Standards that address a variety 
of topics and are designed to streamline the transactional processes 
for the wholesale natural gas industry by promoting a more competitive 
and efficient market. These include the WGQ Additional Business 
Practice Standards, WGQ Nominations Related Business Practice 
Standards, WGQ Flowing Gas Related Standards, WGQ Invoicing Related 
Business Practice Standards, Quadrant Electronic Delivery Mechanism 
Related Business Practice Standards, Capacity Release Related Business 
Practice Standards, and WGQ Cybersecurity Related Standards. We 
summarize these standards below.
    25. The WGQ Additional Standards address six areas: 
Creditworthiness; Storage Information; Gas/Electric Operational 
Communications; Operational Capacity; Unsubscribed Capacity; and 
Location Data Download.
     The Creditworthiness related standards describe 
requirements for the exchange of information, notification, and 
communication between parties during the creditworthiness evaluation 
process.
     The Storage Information related standards define the 
information to be provided to natural gas service requesters related to 
storage activities and/or balances.
     The Gas/Electric Operational Communications related 
standards define communication protocols intended to improve 
coordination between the natural gas and electric industries in daily 
operational communications between gas transportation service providers 
and gas-fired power plants. These standards include requirements for 
communicating anticipated power generation fuel needs for the upcoming 
day as well as any operating problems that might hinder gas-fired power 
plants from receiving contractual gas quantities.
     The Operational Capacity related standards define 
requirements for the transportation service provider's reporting of its 
operational capacity, total scheduled quantity, and operationally 
available capacity.
     The Unsubscribed Capacity related standards define 
requirements for the transportation service provider's reporting of its 
available unsubscribed capacity.
     The Location Data Download related standards define 
requirements for the use of codes assigned by the transportation 
service provider for locations and common codes for parties 
communicating electronically.
    26. The WGQ Nominations Related Standards define the process by 
which a natural gas service requester with a natural gas transportation 
contract nominates (or requests) service from a pipeline or a 
transportation service provider for the delivery of natural gas.
    27. The WGQ Flowing Gas Related Standards define the business 
processes related to the communication of entitlement rights of flowing 
gas at a location, of the entitlement rights on a contractual basis, of 
the management of imbalances, and of the measurement and gas quality 
information of the actual flow of gas.
    28. The WGQ Invoicing Related Standards Manual defines the process 
for the communication of charges for services rendered (Invoice), 
communication of details about funds rendered in payment for services 
rendered (Payment Remittance), and communication of the financial 
status of a customer's account (Statement of Account).
    29. The WEQ Quadrant Electronic Delivery Mechanism Related 
Standards define the framework for the electronic dissemination and 
communication of information between parties in the North American 
wholesale gas marketplace for Electronic Data Interchange/EDM 
transfers, batch flat file/EDM transfers, informational postings 
websites, Electronic Bulletin Boards/EDM, and interactive flat file/
EDM.
    30. The WEQ Capacity Release Related Standards define the business 
processes for communication of information related to the selling of 
all or any portion of a transmission service requester's contract 
rights.
    31. The WEQ Internet Electronic Transport Related Standards define 
the implementation of various technologies necessary to communicate 
transactions and other electronic data using standard protocols for 
electronic commerce over the internet between trading partners.
    32. The WGQ Cybersecurity Related Standards Manual defines the 
requirements for ensuring the security of electronic communications and 
transactions among parties. Commission regulations provide that copies 
of the standards incorporated by reference may be obtained through 
purchase or otherwise from the North American Energy Standards Board, 
801 Travis Street, Suite 1675, Houston, TX 77002, Phone: (713) 356-
0060, website: http://

[[Page 23958]]

www.naesb.org/. The standards can also be reviewed without purchasing 
them.
    33. The procedures used by NAESB make its standards reasonably 
available to those affected by Commission regulations, which generally 
is comprised of entities that have the means to acquire the information 
they need to effectively participate in Commission proceedings. 
Participants can join NAESB, for an annual membership cost of $8,000, 
which entitles them to full participation in NAESB and enables them to 
obtain these standards at no additional cost. Non-members may obtain 
any of the ten individual standards manuals for $250 per manual, which 
in the case of these standards would total $2,500 for all ten manuals. 
Non-members also may obtain the complete set of Standards Manuals for 
$2,000.
    34. NAESB provides ample opportunities for non-members, including 
agents, subsidiaries, and affiliates of NAESB members, to obtain access 
to the copyrighted standards through a no-cost limited copyright 
waiver. The limited copyright waivers are issued by the NAESB office 
and are granted to non-members on a case-by-case basis for the purpose 
of evaluating standards prior to purchase and/or reviewing the 
standards to prepare comments to a regulatory agency. Following the 
granting of a limited copyright waiver, the non-member is provided with 
read-only access to the standards through the end of the comment period 
or some other set period of time via Locklizard Safeguard Secure 
Viewer.\21\ NAESB will grant one limited copyright waiver per company 
for each set of standards or final actions. Any entity seeking a 
limited copyright waiver should contact the NAESB office.
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    \21\ For more information on Locklizard, please refer to the 
company's website: https://www.locklizard.com.
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VI. Information Collection Statement

    35. The Office of Management and Budget (OMB) regulations require 
that OMB approve certain reporting, record keeping, and public 
disclosure requirements (information collection) imposed by an 
agency.\22\ Therefore, we are submitting our proposed information 
collection to OMB for review in accordance with section 3507(d) of the 
Paperwork Reduction Act of 1995. 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 a rule will not 
be penalized for failing to respond to these collections of information 
unless the collection of information displays a valid OMB control 
number.
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    \22\ 5 CFR 1320.11 (2020).
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    36. We solicit comments on our 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.
    37. Public Reporting Burden: The Commission's burden estimates for 
the proposals in this NOPR are for one-time implementation of the 
information collection requirements of this NOPR (including tariff 
filing, documentation of the process and procedures, and information 
technology work).
    38. The collections of information related to this NOPR fall under 
FERC-545 (Gas Pipeline Rates: Rate Change (Non-Formal)) \23\ and FERC-
549C (Standards for Business Practices of Interstate Natural Gas 
Pipelines).\24\ The following estimates of reporting burden are related 
only to this NOPR and anticipate the costs to interstate natural gas 
pipelines for compliance with our proposals in this NOPR. The burden 
estimates are primarily related to implementing these standards and 
regulations and will not result in ongoing costs.
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    \23\ FERC-545 covers rate change filings made by natural gas 
pipelines, including tariff changes.
    \24\ FERC-549C covers Standards for Business Practices of 
Interstate Natural Gas Pipelines.
    \25\ The number of respondents is the number of entities in 
which a change in burden from the current standards to the proposed 
exists, not the total number of entities from the current or 
proposed standards that are applicable.
    \26\ The estimated hourly cost (salary plus benefits) provided 
in this section is based on the salary figures for May 2022 posted 
on April 25, 2023 by the Bureau of Labor Statistics for the 
Utilities sector (https://www.bls.gov/oes/current/naics3_221000.htm) 
and scaled to reflect benefits using the relative importance of 
employer costs for employee compensation from September 12, 2023 
(https://www.bls.gov/news.release/ecec.nr0.htm). The hourly 
estimates for salary plus benefits are:
    Computer and Information Systems Manager (Occupation Code: 11-
3021), $101.58.
    Computer and Information Analysts (Occupation Code: 15-
1120(1221), $87.42.
    Electrical Engineer (Occupation Code: 17-2071), $70.19.
    Legal (Occupation Code: 23-0000), $142.65.
    The average hourly cost (salary plus benefits), weighting these 
skill sets evenly, is $100.50. We round it to $101/hour.

                                                     RM96-1-043 NOPR (Standards for Business Practices of Interstate Natural Gas Pipelines)
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                                                          Annual  number
                                             Number of     of  responses  Total  number of                                              Total annual  burden hours  & total       Annual  costs
                                            respondents         per           responses        Average  burden hr.  per response                  annual cost \26\               per  respondent
                                               \25\         respondent                                                                                                                 ($)
                                                     (1)             (2)   (1) * (2) = (3)  (4)....................................  (3) * (4) = (5)..........................   (5) / (1) = (6)
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FERC-545 (one-time).....................             193               1               193  10 hrs.; $1,010........................  1,930 hrs.; $194,930.....................            $1,010
FERC-549C (one-time)....................             193               1               193  100 hrs.; $10,100......................  19,300 hrs.; $1,949,300..................            10,100
                                         -------------------------------------------------------------------------------------------------------------------------------------------------------
    Total...............................  ..............  ..............               386  .......................................  21,230 hrs.; $1,977,580..................  ................
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    The one-time burden (for both the FERC-545 and FERC-549C) would 
take place in Year 1 as follows:

FERC-545: 193 entities x 1 response/entity (10 hours/response x $101/
hour) = $194,930
FERC-549C: 193 entities x 1 response/entity (100 hours x $101/hour) = 
$1,949,300

    The responses and burden for Years 1-2 would total respectively as 
follows:

Year 1: 97 responses; 970 hours (FERC-545); 9,700 hours (FERC-549C)
Year 2: 96 responses; 960 hours (FERC-545); 9,600 hours (FERC-549C)

    Title: FERC-545, Gas Pipeline Rates: Rates Change (Non-Formal); 
FERC-549C, Standards for Business Practices of Interstate Natural Gas 
Pipelines.
    Action: Proposed information collections.
    OMB Control Nos.: 1902-0154 (FERC-545), 1902-0174 (FERC-549C).
    Respondents: Business or other for profit (e.g., Natural Gas 
Pipelines, applicable to only a few small businesses).

[[Page 23959]]

    Frequency of Responses: One-time implementation (related to 
business procedures, capital/start-up).
    Necessity of Information: In response to NAESB's standard 
development activities, the proposals in this NOPR would, if 
implemented, make minor adjustments to the standards previously adopted 
by the Commission. The standards consolidate the cybersecurity 
standards in one standards manual for ease of reference and revision, 
deleting one element in the Data Dictionary for Internet ET included in 
the WGQ Cybersecurity Related Standards and makes numerous minor 
changes throughout the corresponding manual and the WGQ QEDM Related 
Standards to correct typographical and capitalization errors.
    39. Further, in response to industry requests or through the normal 
course of WGQ activities, the proposals in this NOPR would, if 
implemented, upgrade current business practices and communication 
standards by specifically: (1) adding a new data element, ``Cycle 
Indicator,'' to the data set for the Storage Information standard to 
address technical details for the reporting of storage balances and the 
activities that affect storage balances; (2) revising the data element 
``Service Requester Contract'' contained in the data set for the 
Flowing Gas Related Allocation standard to identify the applicable 
contract and to support the communication of the results of processes 
used to allocate the actual flow of gas quantities to parties involved 
in a transaction; (3) modifying the ``Charge Type Rate'' data element 
contained in the data set for the Transportation/Sales Invoice standard 
that allows for the identification of multiple rates that may be 
applicable for a single transaction or service; and (4) adding a new 
sender's option data element, ``Location Indicator Data,'' to the 
Transactional Reporting--Capacity Release standard to improve 
efficiencies by providing a mechanism for a transportation service 
provider to communicate the locations at which a discounted rate is 
offered as well as if the rate is associated with a single location, 
multiple locations, or all locations. In addition, the Commission's 
Office of Enforcement will use the data for general industry oversight.
    Internal Review: We have reviewed the requirements pertaining to 
business practices of interstate natural gas pipelines and made a 
preliminary determination that the proposed revisions are necessary to 
establish a more efficient and integrated pipeline network. These 
requirements conform to our plan for efficient information collection, 
communication, and management within the natural gas pipeline 
industries. We determined through our internal review that there is 
specific, objective support for the burden estimates associated with 
the information requirements.
    40. Interested persons may obtain information on the reporting 
requirements by contacting the following: Federal Energy Regulatory 
Commission, 888 First Street NE, Washington, DC 20426 [email: 
[email protected]].
    41. Comments concerning the collection of information(s) and the 
associated burden estimate(s), should be sent to the Office of 
Information and Regulatory Affairs, the Office of Management and 
Budget, Washington, DC 20503 [Attention: Desk Officer for the Federal 
Energy Regulatory Commission, telephone: (202) 395-0710; fax: (202) 
395-4718]. A copy of the comments on information collection should also 
be sent to the Commission, in Docket No. RM96-1-043 by any of the 
following methods:
     eFiling at Commission's Website: http://www.ferc.gov/docs-filing/efiling.asp;
     U.S. Postal Service Mail: Persons unable to file 
electronically may mail similar pleadings to the Federal Energy 
Regulatory Commission, 888 First Street NE, Washington, DC 20426; or
     Delivery of filings other than by eFiling or the U.S. 
Postal Service should be delivered to Health and Human Services, 12225 
Wilkins Avenue, Rockville, Maryland 20852.

VII. Environmental Analysis

    42. 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.\27\ The 
actions that we propose to take 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 rules regarding sales, exchange, and 
transportation of natural gas that require no construction of 
facilities.\28\ Therefore, an environmental review is unnecessary and 
has not been prepared as part of this NOPR.
---------------------------------------------------------------------------

    \27\ Reguls. Implementing the Nat'l Env't Pol'y Act, Order No. 
486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs. ] 30,783 
(1987) (cross-referenced at 41 FERC ] 61,284).
    \28\ See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), & 380.4(a)(27) 
(2023).
---------------------------------------------------------------------------

VIII. Regulatory Flexibility Act

    43. The Regulatory Flexibility Act of 1980 (RFA) \29\ generally 
requires a description and analysis of proposed 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.
---------------------------------------------------------------------------

    \29\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------

    44. Approximately 193 interstate natural gas pipelines, both large 
and small, are potential respondents subject to the requirements 
adopted by this rule. Most of the natural gas pipelines regulated by 
the Commission do not fall within the RFA's definition of a small 
entity,\30\ which is currently defined for natural gas pipelines as a 
company that, in combination with its affiliates, has total annual 
receipts of $41.5 million or less.\31\ For the year 2022, only 14 
companies not affiliated with larger companies had annual revenues in 
combination with their affiliates of $41.5 million or less and 
therefore could be considered a small entity under the RFA. This 
represents about eight percent of the total universe of potential 
respondents that may have a significant burden imposed on them. We 
estimate that the one-time implementation cost of the proposals in this 
NOPR is $1,977,580 (or $10,247 per entity, regardless of entity 
size).\32\ We do not consider the estimated $10,247 impact per entity 
to be significant. Moreover, these requirements are designed to benefit 
all customers, including small businesses that must comply with them. 
Further, as noted above, adoption of consensus standards helps ensure 
the reasonableness of the standards by requiring that the standards 
draw support from a broad spectrum of industry participants 
representing all segments of the industry. Because of that 
representation and the fact that industry conducts business under these 
standards, the Commission's regulations should reflect those standards 
that have the widest possible support.
---------------------------------------------------------------------------

    \30\ See 5 U.S.C. 601(3) citing section 3 of the Small Business 
Act (SBA), 15 U.S.C. 623. Section 3 of the SBA defines a ``small 
business concern'' as a business that is independently owned and 
operated, and that is not dominant in its field of operation.
    \31\ 13 CFR 121.201 (Subsector 486-Pipeline Transportation; 
North American Industry Classification System code 486210; Pipeline 
Transportation of Natural Gas) (2023). ``Annual Receipts'' are total 
income plus cost of goods sold.
    \32\ This number is derived by dividing the total cost figure by 
the number of respondents. $1,977,580/193 = $10,247.
---------------------------------------------------------------------------

    45. Accordingly, pursuant to section 605(b) of the RFA,\33\ the 
regulations

[[Page 23960]]

proposed herein should not have a significant economic impact on a 
substantial number of small entities.
---------------------------------------------------------------------------

    \33\ 5 U.S.C. 605(b).
---------------------------------------------------------------------------

IX. Comment Procedures

    46. The Commission invites interested persons to submit comments on 
the matters and issues proposed in this notice to be adopted, including 
any related matters or alternative proposals that commenters may wish 
to discuss. Comments are due June 4, 2024. Comments must refer to 
Docket No. RM96-1-043, and must include the commenter's name, the 
organization they represent, if applicable, and their address in their 
comments. All comments will be placed in the Commission's public files 
and may be viewed, printed, or downloaded remotely as described in the 
Document Availability section below. Commenters on this proposal are 
not required to serve copies of their comments on other commenters.
    47. The Commission encourages comments to be filed electronically 
via the eFiling link on the Commission's website at https://www.ferc.gov/. The Commission accepts most standard word processing 
formats. Documents created electronically using word processing 
software must be filed in native applications or print-to-PDF format 
and not in a scanned format. Commenters filing electronically do not 
need to make a paper filing.
    48. Commenters that are not able to file comments electronically 
may file an original of their comment by USPS mail or by courier-or 
other delivery services. For submission sent via USPS only, filings 
should be mailed to: Federal Energy Regulatory Commission, Office of 
the Secretary, 888 First Street NE, Washington, DC 20426. Submission of 
filings other than by USPS should be delivered to: Federal Energy 
Regulatory Commission, 12225 Wilkins Avenue, Rockville, MD 20852.

X. Document Availability

    49. In addition to publishing the full text of this document in the 
Federal Register, the Commission provides all interested persons an 
opportunity to view and/or print the contents of this document via the 
internet through the Commission's Home Page (https://www.ferc.gov/).
    50. 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.
    51. User assistance is available for eLibrary and the Commission's 
website during normal business hours from the Commission's Online 
Support at (202) 502-6652 (toll free at 1-866-208-3676) or email at 
[email protected], or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at 
[email protected].

List of Subjects in 18 CFR Part 284

    Continental shelf, Incorporation by reference, Natural gas, 
Reporting and recordkeeping requirements.

    By direction of the Commission.

     Issued March 21, 2024.
Debbie-Anne A. Reese,
Acting Secretary.

    In consideration of the foregoing, the Commission proposes to amend 
Part 284, Chapter I, Title 18, Code of Federal Regulations, as follows.

PART 284--CERTAIN SALES AND TRANSPORTATION OF NATURAL GAS UNDER THE 
NATURAL GAS POLICY ACT OF 1978 AND RELATED AUTHORITIES

0
1. The authority citation for part 284 continues to read as follows:

    Authority:  15 U.S.C. 717-717z, 3301-3432; 42 U.S.C. 7101-7352; 
43 U.S.C. 1331-1356.

0
2. Amend Sec.  284.12 by revising paragraph (a)(1) to read as follows:


Sec.  284.12   Standards for pipeline business operations and 
communications.

    (a) * * *
    (1) An interstate pipeline that transports gas under subparts B or 
G of this part must comply with the business practices and electronic 
communications standards as promulgated by the North American Energy 
Standards Board, as incorporated by reference in paragraphs (a)(1)(i) 
through (viii) of this section.
    (i) Additional Standards (Version 4.0, September 29, 2023);
    (ii) Nominations Related Standards (Version 4.0, September 29, 
2023);
    (iii) Flowing Gas Related Standards (Version 4.0, September 29, 
2023);
    (iv) Invoicing Related Standards (Version 4.0, September 29, 2023);
    (v) Quadrant Electronic Delivery Mechanism Related Standards 
(Version 4.0, September 29, 2023);
    (vi) Capacity Release Related Standards (Version 4.0, September 29, 
2023); and
    (vii) Internet Electronic Transport Related Standards (Version 4.0, 
September 29, 2023);
    (viii) Cybersecurity Related Standards Manual (Version 4.0, 
September 29, 2023)
* * * * *
[FR Doc. 2024-06561 Filed 4-4-24; 8:45 am]
BILLING CODE 6717-01-P