Rule2024-28090
Standards for Business Practices of Interstate Natural Gas Pipelines
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 9, 2024
Effective
February 7, 2025
Issuing agencies
Energy DepartmentFederal Energy Regulatory Commission
Abstract
The Federal Energy Regulatory Commission amends 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 (WGQ) of the North American Energy Standards Board (NAESB). NAESB's revisions in this version of the standards are designed to promote greater efficiency and reliability of the natural gas industry's operations and strengthen the cybersecurity protections provided within the standards.
Full Text
<html>
<head>
<title>Federal Register, Volume 89 Issue 236 (Monday, December 9, 2024)</title>
</head>
<body><pre>
[Federal Register Volume 89, Number 236 (Monday, December 9, 2024)]
[Rules and Regulations]
[Pages 97518-97525]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-28090]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 284
[Docket No. RM96-1-043; Order No. 587-AA]
Standards for Business Practices of Interstate Natural Gas
Pipelines
AGENCY: Federal Energy Regulatory Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Energy Regulatory Commission amends 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 (WGQ) of the North American Energy Standards Board
(NAESB). NAESB's revisions in this version of the standards are
designed to promote greater efficiency and reliability of the natural
gas industry's operations and strengthen the cybersecurity protections
provided within the standards.
DATES:
Effective date: This rule is effective February 7, 2025.
Compliance date: Compliance filings required by this final rule are
due on February 3, 2025. Compliance with the standards incorporated by
reference in this rule is required by August 1, 2025.
Incorporation by reference: The incorporation by reference of
certain publications listed in this rule is approved by the Director of
the Federal Register as of February 7, 2025.
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.......................................... 3
III. Discussion......................................... 9
A. The NAESB WGQ Version 4.0 Business Practice 13
Standards..........................................
1. WGQ Cybersecurity Related Standards.............. 15
2. Other Standards Modifications.................... 16
3. Standards Not Incorporated by Reference.......... 22
B. Required Compliance Filings...................... 23
C. Implementation Procedures........................ 24
IV. Notice of Use of Voluntary Consensus Standards...... 30
V. Incorporation by Reference........................... 31
VI. Information Collection Statement.................... 43
VII. Environmental Analysis............................. 50
VIII. Regulatory Flexibility Act........................ 51
[[Page 97519]]
X. Effective Date and Congressional Notification........ 57
------------------------------------------------------------------------
I. Overview
1. In this final rule, the Federal Energy Regulatory Commission
(Commission) amends its regulations at 18 CFR 284.12 to incorporate by
reference, with certain enumerated exceptions,\1\ the latest version
(WGQ Version 4.0) of business practice standards applicable to natural
gas pipelines. On October 2, 2023, NAESB reported to the Commission
that it had approved WGQ Version 4.0 to replace the currently
incorporated version (Version 3.2) of those business practice
standards. On May 21, 2024, NAESB reported a minor correction to WGQ
Version 4.0. This final rule requires interstate natural gas pipelines
to file compliance filings with the Commission by February 3, 2025,
with an effective date of the tariff records of August 1, 2025.
---------------------------------------------------------------------------
\1\ As explained below, we are not incorporating by reference in
this final rule the optional model contracts and the eTariff-related
standards included in the North American Energy Standards Board
(NAESB) Wholesale Gas Quadrant (WGQ) Version 4.0 package of business
practice standards.
---------------------------------------------------------------------------
2. The implementation of these standards will promote greater
efficiency and reliability of the natural gas industry's operations and
strengthen the cybersecurity protections provided within the
standards.\2\
---------------------------------------------------------------------------
\2\ 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.
---------------------------------------------------------------------------
II. Background
3. Since 1996, the Commission has adopted regulations to
standardize the business practices and communication methodologies of
interstate natural gas pipelines to create a more integrated and
efficient pipeline system. These regulations have been promulgated in
the Order No. 587 series of orders,\3\ wherein the Commission has
incorporated by reference standards for interstate natural gas pipeline
business practices and electronic communications that were developed
and adopted 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.
---------------------------------------------------------------------------
\3\ This series of orders began with the Commission's issuance
of Order No. 587, Standards for Business Practices of Interstate
Natural. Gas Pipelines. 61 FR 39053 (July 26, 1996), FERC Stats. &
Regs. ] 31,038 (1996) (cross-referenced at 76 FERC ] 61,042).
---------------------------------------------------------------------------
4. On October 2, 2023, NAESB filed a report (Informational 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 Laboratories (Sandia),\4\ which in 2019 issued a DOE-sponsored
cybersecurity surety assessment of the NAESB standards.\5\
---------------------------------------------------------------------------
\4\ 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.
\5\ 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.
---------------------------------------------------------------------------
5. NAESB's Informational Report identifies all the changes made to
the WGQ Version 3.2 standards and summarizes the deliberations that led
to the changes being made. It also identifies changes to the existing
standards that were considered but not adopted due to a lack of
consensus or other reasons.
6. On March 21, 2024, the Commission issued a Notice of Proposed
Rulemaking proposing to amend its regulations to incorporate by
reference, with certain enumerated exceptions, the WGQ Version 4.0
business practice standards applicable to interstate natural gas
pipelines.\6\
---------------------------------------------------------------------------
\6\ Standards for Bus. Pracs. of Interstate Nat. Gas Pipelines,
Notice of Proposed Rulemaking, 89 FR 23954 (Apr. 4, 2024), 186 FERC
] 61,196 (2024) (WGQ Version 4.0 NOPR).
---------------------------------------------------------------------------
7. On May 21, 2024, NAESB submitted, and the Commission noticed for
comment, an errata filing to update the Informational Report, noting a
minor correction to an existing WGQ standard.\7\ The standard supports
the communication of invoices between trading partners, including
transactions for natural gas transportation and sales and related
charges and/or allowances. NAESB states that it adopted and ratified
the changes for that standard on March 23, 2020, which became effective
on November 3, 2020, but were inadvertently omitted from WGQ Version
3.2 and WGQ Version 4.0. The minor correction revised the Electronic
Delivery Mechanism (EDI) X12 Mapping Guidelines for existing WGQ
standard 3.4.1--Transportation/Sales Invoice to add code values for
five data elements.\8\
---------------------------------------------------------------------------
\7\ NAESB WGQ implemented the minor correction, Minor Correction
MC24002, on May 17, 2024, which modifies NAESB WGQ Standard No.
3.4.1--Transportation/Sales Invoice included in the WGQ Invoicing
Related Standards.
\8\ NAESB states that the standard changes are to ensure the
hierarchal structure of the dataset complied with the Accredited
Standards Institute X12 Transaction Set 811 Consolidated Service
Invoice/Statement.
---------------------------------------------------------------------------
8. In response to the WGQ Version 4.0 NOPR, the American Gas
Association (AGA) and the Interstate Natural Gas Association (INGAA)
filed comments. AGA expresses support of the Commission's proposed
rulemaking as well as the minor correction submitted by NAESB on May
21, 2024.\9\ INGAA also supports the Commission's proposed rulemaking
but urges that the Commission not implement the final rule during the
winter heating season, and thus, requests that the implementation date
of the final rule should not be earlier than April 1, 2025.\10\
---------------------------------------------------------------------------
\9\ AGA Comments at 1. AGA also expresses its disappointment
that Standards Request No. 23001 was not part of the proposed
revisions. AGA Comments at 1-2. These comments do not pertain to
this final rule, and thus, will not be addressed.
\10\ INGAA Comments at 2.
---------------------------------------------------------------------------
III. Discussion
9. In the WGQ Version 4.0 NOPR, the Commission proposed to
incorporate by reference in its regulations the NAESB WGQ Version 4.0
business practice standards, with the exception of NAESB's standards
specifying the terms of optional model contracts and the eTariff-
related standards. No commenters opposed the Commission's proposal.
[[Page 97520]]
10. In this final rule, we adopt the proposal to incorporate by
reference, in our regulations, the NAESB WGQ Version 4.0 business
practice standards, with certain exceptions. As an initial matter, we
note that the WGQ Version 4.0 business practice standards include
modifications, reservations, deletions, and additions to the following
set of Version 3.2 WGQ Standards. (Each set of Business Practice
Standards is referred to as a manual.)
------------------------------------------------------------------------
Manual Business practice standards
------------------------------------------------------------------------
0............................... Additional Standards.
2............................... Flowing Gas Related Standards.
3............................... Invoicing Related Standards.
4............................... Quadrant Electronic Delivery Mechanism
Standards.
5............................... Capacity Release Related Standards.
10.............................. WGQ/REQ/RGQ Internet Electronic
Transport.
------------------------------------------------------------------------
Additionally, the WGQ Version 4.0 business practice standards
include one new manual of standards:
------------------------------------------------------------------------
Manual Business practice standards
------------------------------------------------------------------------
12.............................. Cybersecurity Related Standards.
------------------------------------------------------------------------
11. We require compliance filings be made by February 3, 2025, with
an effective date of August 1, 2025. as more fully described below.
12. We discuss below some specific aspects of NAESB's Informational
Report.
A. The NAESB WGQ Version 4.0 Business Practice Standards
13. NAESB used its consensus procedures to develop and approve the
WGQ Version 4.0 business practice standards. As the Commission found in
Order No. 587, the 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, since the industry itself must conduct business
under these standards, the Commission's regulations should reflect
those standards that have the widest possible support. In section 12(d)
of the National Technology Transfer and Advancement Act of 1995
(NTT&AA),\11\ Congress affirmatively requires federal agencies to use
technical standards developed by voluntary consensus standards
organizations, like NAESB, as means to carry out policy objectives or
activities.
---------------------------------------------------------------------------
\11\ Public Law 104-113, 12(d), 110 Stat. 775 (1996).
---------------------------------------------------------------------------
14. We incorporate by reference into the Commission's regulations
the WGQ Version 4.0 business practice standards, with the exception of
NAESB's standards specifying the terms of optional model contracts and
the eTariff-related standards, as discussed below.
1. WGQ Cybersecurity Related Standards
15. The new WGQ Cybersecurity Related Standards Manual consolidates
existing NAESB cybersecurity-related standards from various NAESB
standards manuals 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 used by the industry through the mitigation of
potential vulnerabilities and the use of secure communication and
encryption methodologies.
2. Other Standards Modifications
16. In response to industry request, WGQ Version 4.0 adds new data
elements to the WGQ Additional Standards and the WGQ Capacity Release
Related Standards and modifies existing data elements in the WGQ
Flowing Gas Related Standards and the WGQ Invoicing Related Standards
to improve efficiencies of business processes for transportation
service providers and parties interacting with these entities.\12\
---------------------------------------------------------------------------
\12\ 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.''
---------------------------------------------------------------------------
17. The revised WGQ Additional Standards add 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. 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.\13\
---------------------------------------------------------------------------
\13\ Informational Report at 4.
---------------------------------------------------------------------------
18. Revisions to the WGQ Flowing Gas Related Business Practice
Standards include a change to 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.\14\
---------------------------------------------------------------------------
\14\ The matrix identifies the data elements needed to
communicate the results of the allocation process.
---------------------------------------------------------------------------
19. 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. 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.\15\
---------------------------------------------------------------------------
\15\ Informational Report at 5.
---------------------------------------------------------------------------
20. The revised WGQ Capacity Release Related Standards add 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.
21. Also included in WGQ Version 4.0 is a previous revision to an
existing WGQ Invoicing Related Standard that modifies the ``Electronic
Delivery Mechanism (EDI) X12 Mapping Guidelines'' by adding code values
for five data elements to WGQ Standard 3.4.1--Transportation/Sales
Invoice to ensure the hierarchal structure of the dataset complied with
the Accredited Standards Institute X12 Transaction Set 811 Consolidated
Service Invoice/Statement.
3. Standards Not Incorporated by Reference
22. We continue our past practice \16\ of not incorporating by
reference into our regulations the WGQ standard contracts relating to
the sale of natural gas because we do not require the use of these
contracts.\17\ Thus, we also do not incorporate by reference the WGQ
4.0
[[Page 97521]]
Contracts Related Standards Manual. In addition, consistent with our
findings in past proceedings, we do not incorporate by reference the
WGQ eTariff Related Standards because the Commission has previously
adopted and posted its standards and protocols for electronic tariff
filings based on NAESB standards.\18\
---------------------------------------------------------------------------
\16\ See, e.g., Standards for Bus. Practices of Interstate Nat.
Gas Pipelines, Notice of Proposed Rulemaking, 86 FR 12879 (March 5,
2021), 174 FERC ] 61,103, at P 19 (2021) (Version 3.2 NOPR).
\17\ 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).
\18\ 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).
---------------------------------------------------------------------------
B. Required Compliance Filings
23. As suggested by INGAA, we will delay implementation of this
final rule until after the 2024-2025 winter heating period. To
implement the standards that we are incorporating by reference in this
final rule, we will require each interstate natural gas pipeline to
file a separate tariff record reflecting the changed standards by
February 3, 2025.\19\ In response to INGAA's concern that the
Commission could require implementation of this final rule during the
winter heating season, we will require the compliance filings to be
made with an effective date of August 1, 2025. We are adopting this
implementation schedule to give the interstate natural gas pipelines
subject to these standards adequate time to implement these changes.
---------------------------------------------------------------------------
\19\ To aid in compliance, promptly after issuance of this final
rule, we will post a sample tariff record on the Commission's
website that may be accessed at <a href="http://www.ferc.gov/ferc-online/elibrary">www.ferc.gov/ferc-online/elibrary</a>.
All interstate natural gas pipelines are to file their tariff
records in conformance with this sample tariff record.
---------------------------------------------------------------------------
C. Implementation Procedures
24. We will 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.\20\ We require each interstate natural gas pipeline to
submit its compliance filing no later than February 3, 2025.
---------------------------------------------------------------------------
\20\ Order No. 587-V, 140 FERC ] 61,036 at PP 36-39.
---------------------------------------------------------------------------
25. 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.\21\ In that tariff section, the pipeline
must list for each standard:
---------------------------------------------------------------------------
\21\ Trans-Union Interstate Pipeline L.P., 141 FERC ] 61,167, at
P 36 (2012) (Order No. 587-V Compliance Order); Version 3.2 NOPR,
174 FERC ] 61,103 at P 21.
(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 time, or other
variance with respect to compliance with the standard.\22\
---------------------------------------------------------------------------
\22\ 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.
26. 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.
27. Consistent with our policy since Order No. 587-V,\23\ 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.\24\
---------------------------------------------------------------------------
\23\ Order No. 587-V, 140 FERC ] 61,036.
\24\ 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).
---------------------------------------------------------------------------
28. 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.
29. This implementation approach 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
30. Office of Management and Budget (OMB) Circular A-119 (section
11) (Feb. 10, 1998) provides that when a federal agency issues or
revises a regulation containing a standard, the agency should publish a
statement in the final rule stating whether the adopted standard is a
voluntary consensus standard or a government-unique standard. In this
final rule, we are incorporating by reference voluntary consensus
standards developed by NAESB's WGQ. In section 12(d) of NTT&AA,
Congress affirmatively requires federal agencies to use technical
standards developed by voluntary consensus standards organizations to
carry out policy objectives or activities determined by the agencies
unless use of such standards would be inconsistent with applicable law
or otherwise impractical.\25\
---------------------------------------------------------------------------
\25\ Public Law 104-113, 12(d), 110 Stat. 775 (1996), 15 U.S.C.
272 note (1997).
---------------------------------------------------------------------------
V. Incorporation by Reference
31. The Office of the Federal Register requires agencies
incorporating material by reference in final rules 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.\26\ The regulations also require agencies to summarize,
in the preamble of the final rule, the material it incorporates by
reference. The standards that we are incorporating by reference in this
final rule consist of seven suites of NAESB WGQ Business Practice
Standards, which include a minor correction to the invoicing related
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 Business Practice Standards; WGQ Invoicing Related Business
Practice Standards, with WGQ Invoicing Related Standards Minor
Correction MC24002; WGQ Quadrant Electronic Delivery Mechanism Related
Business Practice Standards; WGQ Capacity Release Related Business
Practice Standards; and WGQ Cybersecurity Related Standards.
---------------------------------------------------------------------------
\26\ 1 CFR 51.5 (2023). See Incorporation by Reference, 79 FR
66267 (Nov. 7, 2014).
---------------------------------------------------------------------------
32. As noted above, included in the standards incorporated by
reference is the WGQ Invoicing Related Standards Minor Correction (MC
24002), which is an errata to update the Informational Report to the
existing standard which supports the communication of invoices between
trading partners.
33. We summarize these standards below. The WGQ Additional Business
Practice Standards address six areas: Creditworthiness; Storage
Information;
[[Page 97522]]
Gas/Electric Operational Communications; Operational Capacity;
Unsubscribed Capacity; and Location Data Download.
<bullet> The Creditworthiness related standards describe
requirements for the exchange of information, notification, and
communication between parties during the creditworthiness evaluation
process.
<bullet> The Storage Information related standards define the
information to be provided to natural gas service requesters related to
storage activities and/or balances.
<bullet> 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.
<bullet> 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.
<bullet> The Unsubscribed Capacity related standards define
requirements for the transportation service provider's reporting of its
available unsubscribed capacity.
<bullet> 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.
34. The WGQ Nominations Related Business Practice 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.
35. The WGQ Flowing Gas Related Business Practice 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.
36. The WGQ Invoicing Related Business Practice Standards define
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).
37. The WGQ Quadrant Electronic Delivery Mechanism Related Business
Practice 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.
38. The WGQ Capacity Release Related Business Practice 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.
39. The WGQ Cybersecurity Related Standards consolidate existing
NAESB cybersecurity-related standards from various standards manuals
into a single manual. These standards define the requirements for
ensuring the security of electronic communications and transactions
among parties.
40. 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:
<a href="http://www.naesb.org/">www.naesb.org/</a>. The standards can also be reviewed without purchasing
them.
41. 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.
42. 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.\27\ NAESB will grant one limited copyright wavier per company
for each set of standards or final actions. Any entity seeking a
limited copyright waiver should contact the NAESB office.
---------------------------------------------------------------------------
\27\ For more information on Locklizard, please refer to the
company's website: <a href="http://www.locklizard.com">www.locklizard.com</a>.
---------------------------------------------------------------------------
VI. Information Collection Statement
43. The OMB regulations require that OMB approve certain reporting,
record keeping, and public disclosure requirements (information
collection) imposed by an agency.\28\ 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.
---------------------------------------------------------------------------
\28\ 5 CFR 1320.11 (2023).
---------------------------------------------------------------------------
44. The Commission solicited 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.
45. Public Reporting Burden: The burden estimates for this final
rule are for one-time implementation of the information collection
requirements of this final rule (including tariff filing, documentation
of the process and procedures, and information technology work).
46. The collections of information related to this final rule fall
under FERC-545 (Gas Pipeline Rates: Rate Change (Non-Formal)) \29\ and
FERC-549C (Standards for Business Practices
[[Page 97523]]
of Interstate Natural Gas Pipelines).\30\ The following estimates of
reporting burden are related only to this Final Rule and include the
costs to pipelines for compliance with the Commission's directives in
this final rule. The burden estimates are primarily related to
implementing these standards and regulations and will not result in
ongoing costs.
---------------------------------------------------------------------------
\29\ FERC-545 covers rate change filings made by natural gas
pipelines, including tariff changes.
\30\ FERC-549C covers Standards for Business Practices of
Interstate Natural Gas Pipelines.
RM96-1-043 NOPR (Standards for Business Practices of Interstate Natural Gas Pipelines)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Number of Annual number Annual costs
respondents of responses Total number of Average burden hr. per response Total annual burden hours & total annual per respondent
\31\ per respondent responses cost \32\ ($)
(1) (2) (1) * (2) = (3) (4).................................... (3) * (4) = (5).......................... (5)/(1) = (6)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
FERC-545 (one-time)..................... 193 1 193 10 hrs.; $1,110........................ 1,930 hrs.; $214,230..................... $1,110
FERC-549C (one-time).................... 193 1 193 100 hrs.; $11,100...................... 19,300 hrs.; $2,142,300.................. $11,100
-------------------------------------------------------------------------------------------------------------------------------------------------------
Total............................... .............. .............. 386 ....................................... 21,230 hrs.; $2,356,530..................
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
The one-time burden (for both the FERC-545 and FERC-549C) would
take place in Year 1 and will be averaged over 3 years as follows:
---------------------------------------------------------------------------
\31\ 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.
\32\ The estimated hourly cost (salary plus benefits) provided
in this section is based on the salary figures for March 2024 posted
on June 18, 2024 by the Bureau of Labor Statistics for the Utilities
sector (available at <a href="http://www.bls.gov/oes/current/naics3221000.htm">www.bls.gov/oes/current/naics3221000.htm</a>) and
scaled to reflect benefits using the relative importance of employer
costs for employee compensation (available at <a href="https://www.bls.gov/news.release/ecec.nr0.htm">https://www.bls.gov/news.release/ecec.nr0.htm</a>). The hourly estimates for salary plus
benefits are:
Computer and Information Systems Manager (Occupation Code: 11-
3021), $115.47.
Computer and Information Analysts (Occupation Code: 15-1221,
$87.19.
Electrical Engineer (Occupation Code: 17-2071), $79.31.
Legal (Occupation Code: 23-0000), $162.66.
The average hourly cost (salary plus benefits), weighting these
skill sets evenly, is $111.16. We round it to $111/hour.
FERC-545: 1,930 / 3 = 643.33 hours/year over 3 years
FERC-549C: 19,300 / 3 = 6,433.33 hours/year over 3 years
The responses and burden for Years 1-3 would total respectively
as follows:
Year 1: 64.33 responses; 643.33 hours (FERC-545); 6,433.33 hours
(FERC-549C)
Year 2: 64.33 responses; 643.33 hours (FERC-545); 6,433.33 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).
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 Commission has determined that the
revisions the Commission makes in this final rule to its regulations
would 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 EDM Related Standards
to correct typographical and capitalization errors.
47. Further, in response to industry requests or through the normal
course of WGQ activities, the Commission has determined that the
revisions the Commission makes in this final rule to its regulations
would 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; (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; (5) adding code values for five data elements to the EDI X12
Mapping Guidelines in the Transportation/Sales Invoice standard to
ensure the hierarchal structure of the dataset complied with the
Accredited Standards Institute X12 Transaction Set 811 Consolidated
Service Invoice/Statement. In addition, the Commission's Office of
Enforcement will use the data for general industry oversight.
Internal Review: The Commission has reviewed the requirements
pertaining to business practices of interstate natural gas pipelines
adopted by NAESB and has determined that the revisions the Commission
makes in this final rule to its regulations are necessary to promote
greater efficiency and reliability of the natural gas industry's
operations and strengthen cybersecurity protections. These requirements
conform to our plan for efficient information collection,
communication, and management within the natural gas pipeline industry.
The Commission has determined through its internal review that there is
specific, objective support for the burden estimates associated with
the information requirements.
48. 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:
<a href="/cdn-cgi/l/email-protection#81c5e0f5e0c2ede4e0f3e0efe2e4c1e7e4f3e2afe6eef7"><span class="__cf_email__" data-cfemail="35715441547659505447545b565075535047561b525a43">[email protected]</span></a>.
49. Comments concerning the collection of information(s) and the
associated burden estimate(s), should be
[[Page 97524]]
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, phone: (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:
<bullet> eFiling at Commission's website: <a href="http://www.ferc.gov/docs-filing/efiling.asp">www.ferc.gov/docs-filing/efiling.asp</a>;
<bullet> 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
<bullet> 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
50. 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.\33\ The
actions that we 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 facilities.\34\ Therefore, an
environmental review is unnecessary and has not been prepared as part
of this final rule.
---------------------------------------------------------------------------
\33\ Regulations Implementing the National Environmental Policy
Act, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs.
Preambles 1986-1990 ] 30,783 (1987) (cross-referenced at 41 FERC ]
61,284).
\34\ See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), and 380.4(a)(27)
(2023).
---------------------------------------------------------------------------
VIII. Regulatory Flexibility Act
51. The Regulatory Flexibility Act of 1980 (RFA) \35\ 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.
---------------------------------------------------------------------------
\35\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------
52. As we stated in the WGQ Version 4.0 NOPR, 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,\36\ 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.\37\ For the year 2022, only 14 potential respondents 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 final rule is $2,356,530
(or $12,210 per entity, regardless of entity size).\38\ We do not
consider the estimated $12,210 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.
---------------------------------------------------------------------------
\36\ 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.
\37\ 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.
\38\ This number is derived by dividing the total cost figure by
the number of respondents. $2,356,530/193 = $12,210.
---------------------------------------------------------------------------
53. Accordingly, pursuant to section 605(b) of the RFA,\39\ the
regulations proposed herein should not have a significant economic
impact on a substantial number of small entities.
---------------------------------------------------------------------------
\39\ 5 U.S.C. 605(b).
---------------------------------------------------------------------------
IX. Document Availability
54. 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 (<a href="http://www.ferc.gov/">www.ferc.gov/</a>).
55. 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.
56. 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
<a href="/cdn-cgi/l/email-protection#d1b7b4a3b2bebfbdb8bfb4a2a4a1a1bea3a591b7b4a3b2ffb6bea7"><span class="__cf_email__" data-cfemail="dabcbfa8b9b5b4b6b3b4bfa9afaaaab5a8ae9abcbfa8b9f4bdb5ac">[email protected]</span></a>, or the Public Reference Room; phone: (202)
502-8371, TTY (202) 502-8659; email: <a href="/cdn-cgi/l/email-protection#4c3c392e20252f623e292a293e29222f293e2323210c2a293e2f622b233a"><span class="__cf_email__" data-cfemail="8cfcf9eee0e5efa2fee9eae9fee9e2efe9fee3e3e1cceae9feefa2ebe3fa">[email protected]</span></a>.
X. Effective Date and Congressional Notification
57. These regulations are effective February 7, 2025. The
Commission has determined, with the concurrence of the Administrator of
the Office of Information and Regulatory Affairs of OMB, that this rule
is not a ``major rule'' as defined in section 351 of the Small Business
Regulatory Enforcement Fairness Act of 1996. This final rule is being
submitted to the Senate, House, and Government Accountability Office.
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: November 22, 2024.
Debbie-Anne A. Reese,
Secretary.
In consideration of the foregoing, the Commission amends 18 CFR
part 284 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:
0
A. Revising paragraphs (a)(1)(i) through (vii);
0
B. Adding paragraph (a)(1)(viii); and
0
C. Revising paragraph (a)(2).
The revisions and additions read as follows:
Sec. 284.12 Standards for pipeline business operations and
communications.
(a) * * *
(1) * * *
(i) WGQ Additional Standards (Version 4.0, September 29, 2023);
(ii) WGQ Nominations Related Standards (Version 4.0, September 29,
2023);
[[Page 97525]]
(iii) WGQ Flowing Gas Related Standards (Version 4.0, September 29,
2023);
(iv) WGQ Invoicing Related Standards (Version 4.0, September 29,
2023);
(v) WGQ Invoicing Related Standards Minor Correction/Clarification
MC24002, approved by the WGQ on May 2, 2024 (Minor Correction/
Clarification MC24002 was implemented on May 17, 2024).
(vi) WGQ Quadrant Electronic Delivery Mechanism Related Standards
(Version 4.0, September 29, 2023);
(vii) WGQ Capacity Release Related Standards (Version 4.0,
September 29, 2023); and
(viii) WGQ Cybersecurity Related Standards (Version 4.0, September
29, 2023)
(2) The material listed paragraph (a)(1) is incorporated by
reference into this section with the approval of the Director of the
Federal Register under 5 U.S.C. 552(a) and 1 CFR part 51. All approved
material is available for inspection at the Federal Energy Regulatory
Commission and at the National Archives and Records Administration
(NARA). For assistance in viewing the material, contact the Federal
Energy Regulatory Commission at: 888 First Street NE, Washington, DC
20426 phone: 202-502-8371; email: <a href="/cdn-cgi/l/email-protection#6b1b1e0907020845190e0d0e190e05080e190404062b0d0e1908450c041d"><span class="__cf_email__" data-cfemail="79090c1b15101a570b1c1f1c0b1c171a1c0b161614391f1c0b1a571e160f">[email protected]</span></a>;
website: <a href="https://www.ferc.gov">https://www.ferc.gov</a>. For information on the availability of
this material at NARA, visit <a href="http://www.archives.gov/federal-register/cfr/ibr-locations">www.archives.gov/federal-register/cfr/ibr-locations</a> or email <a href="/cdn-cgi/l/email-protection#167064387f7865667375627f7978567877647738717960"><span class="__cf_email__" data-cfemail="2e485c0047405d5e4b4d5a4741406e404f5c4f00494158">[email protected]</span></a>. The material also may be
obtained from the North American Energy Standards Board, 801 Travis
Street, Suite 1675, Houston, TX 77002; phone: (713) 356-0060; website:
<a href="https://www.naesb.org/">https://www.naesb.org/</a>.
* * * * *
[FR Doc. 2024-28090 Filed 12-6-24; 8:45 am]
BILLING CODE 6717-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on December 9, 2024.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.