RM06-1-000 Press Release

FEDERAL ENERGY
REGULATORY COMMISSION
WASHINGTON, D.C. 20426

NEWS RELEASE
NEWS MEDIA CONTACT:
Tamara Young-Allen
202-502-8680

FOR IMMEDIATE RELEASE
October 19, 2006
Docket No. RM06-1-000

COMMISSION FINALIZES RULE ON CONSOLIDATED FEDERAL RECORD
FOR JUDICIAL REVIEW OF GAS INFRASTRUCTURE PROPOSALS
The Federal Energy Regulatory Commission today finalized a rulemaking that
implements provisions of the Energy Policy Act of 2005 requiring the Commission to
coordinate the environmental review and the issuance of all federal authorizations for
natural gas infrastructure proposals with other federal and state agencies, and to maintain
a consolidated federal record for judicial appeal and review.
“This final rule strikes an appropriate balance. It provides adequate time for
federal regulatory deliberation, and allows project sponsors to avoid protracted regulatory
review and judicial review processes,” Commission Chairman Joseph T. Kelliher said.
Under the final rule, the Commission will act as lead agency for environmental
review and will establish a schedule by which federal agencies, as well as state agencies
acting under federally delegated authority, will reach final regulatory decisions necessary
for the approval of natural gas infrastructure projects under section 3 or section 7 of the
Natural Gas Act. The new rule applies to natural gas pipelines, compressor stations,
storage fields, liquefied natural gas terminals and other related facilities.
The deadline for agencies’ final decisions will be 90 days after Commission staff
issues either an environmental assessment (EA) or an environmental impact statement
(EIS) in a proceeding. The 90-day deadline would not apply if an agency’s deadline is
otherwise determined by federal law. To provide agencies with advance notice of when
their final regulatory decisions will be due, the Commission will issue a scheduling notice
for its environmental review, including target dates for issuance of the final EIS or EA.
The Commission determined the 90-day timeframe will provide more certainty to
the project applicants and to the public as to when to expect agency decisions affecting
natural gas infrastructure proposals.
Although the Commission has authority to approve interstate gas infrastructure
proposals under the Natural Gas Act, in general a project may not move forward unless

several other agencies have also made favorable rulings regarding other aspects of the
proposal under other federal laws.
For example, state agencies have federally delegated authority under the Coastal
Zone Management Act, administered by the U.S. Department of Commerce; the Clean
Air Act, administered by the U.S. Environmental Protection Agency; and the Clean
Water Act, administered by the U.S. Army Corps of Engineers.
Within 30 days of receiving an applicant’s request for a federal authorization, the
final rule directs agencies to inform the Commission: (1) whether the agency deems the
application to be ready for processing and, if not, what additional information or
materials will be necessary to assess the merits of the request; (2) the time the agency will
allot the applicant to provide the necessary additional information; (3) what, if any
studies will be necessary in order to evaluate the request; (4) the anticipated effective date
of the agency’s decision; and (5) if applicable, the schedule established by federal law for
an agency to act. In addition, agencies are to provide the Commission with a copy of any
data requests sent to applicants.
In addition to requiring the Commission to coordinate regulatory review among
various agencies, the Energy Policy Act directed the Commission to maintain a complete
consolidated record of all decisions made or actions taken by the Commission or by a
federal administrative agency or officer, or state administrative agency or officer acting
under delegated federal authority. This provision of the Energy Policy Act was recently
upheld in a decision by the U.S. Court of Appeals for the Second Circuit.
The final rule will require agencies to provide the Commission with a copy of the
final decision or action taken and an index to the record to be filed within 30 days after
the issuance of the agency’s final decision or action. The Commission said a three-day
timeframe, as proposed in a May 2006 Notice of Proposed Rulemaking, was not needed
to satisfy the Energy Policy Act mandate to maintain a complete consolidated record.
The rule takes effect 60 days after publication in the Federal Register.
R-06-67
(30)