FERC-549C, (Final Rule in
RM96-1-042) Standards for Business Practices of Interstate Natural
Gas Pipelines
Revision of a currently approved collection
No
Regular
08/12/2021
Requested
Previously Approved
6 Months From Approved
02/28/2022
723
545
66,050
48,250
0
0
The business practice standards under
FERC-549C are required to carry out the Commission’s policies in
accordance with the general authority in Sections 4, 5, 7, 8, 10,
14, 16, and 20 of the Natural Gas Act (NGA) (15 U.S.C. 717c-717w),
and sections 311, 501, and 504 of the Natural Gas Policy Act of
1978 (NGPA) (15 U.S.C. 3301-3432). The Commission adopted these
business practice standards in order to update and standardize the
natural gas industry’s business practices and procedures as well as
to improve the efficiency of the gas market and the means by which
the gas industry conducts business across the interstate pipeline
grid. In various orders since 1996 , FERC has adopted regulations
to standardize the business practices and communication
methodologies of interstate natural gas pipelines in order to
create a more integrated and efficient pipeline industry. In
general, when and if NAESB-proposed standards (e.g., consensus
standards developed by the Wholesale Gas Quadrant (WGQ), an
accredited standards organization under the auspices of the
American National Standards Institute (ANSI)) are approved by FERC,
the Commission incorporates them by reference into its approval.
The process of standardizing business practices in the natural gas
industry began with a Commission initiative to standardize
electronic communication of capacity release transactions. The
outgrowth of the initial Commission standardization efforts
produced working groups composed of all segments of the gas
industry and ultimately, the Gas Industry Standards Board (GISB), a
consensus organization open to all members of the gas industry was
created. GISB was succeeded by the North American Energy Standards
Board (NAESB). NAESB is a voluntary non-profit organization
comprised of members from the retail and wholesale natural gas and
electric industries. NAESB’s mission is to take the lead in
developing standards across these industries to simplify and expand
electronic communication, and to streamline business practices.
Core to its objective is to lead to a seamless North American
marketplace for natural gas, as recognized by its customers, the
business community, industry participants and regulatory bodies.
NAESB has divided its efforts among four quadrants, including two
retail quadrants, a wholesale electric quadrant, and the WGQ. The
NAESB WGQ standards are a product of this effort. Industry
participants seeking additional or amended standards (including
principles, definitions, standards, data elements, process
descriptions, technical implementation instructions) submit a
request to the NAESB office, detailing the change, so that the
appropriate process may take place to amend the standards. The
Final Rule in RM96-1-041 requires interstate natural gas pipelines
to make a one-time tariff filing to reflect the changes in the
updated NAESB standards in FERC-545. The Commission reviews the
FERC-549C materials to determine whether proposed transportation
and sales rates and terms and conditions of service are just and
reasonable. The Commission uses the information to monitor rates
and terms and conditions of service related to jurisdictional
transportation, natural gas storage, and unbundled sales activities
of jurisdictional companies. In addition to fulfilling the
Commission’s obligations under the NGA, the information enables the
Commission to monitor the activities and evaluate transactions of
the natural gas industry to ensure competitiveness and improved
efficiency of the industry’s operations.
The additional burden is being
implemented due to the Final Rule in RM96-1-042 and is being
averaged over Years 1-3.The Final Rule in RM96-1-042 amends the
Commission’s regulations at 18 CFR 284.12(a) to incorporate by
reference the latest version (Version 3.2) of seven business
practice standards applicable to interstate natural gas pipelines
adopted by NAESB’s WGQ. The Final Rule requires interstate natural
gas pipelines to file compliance filings with the Commission by
November 12, 2021 and to comply with the standards incorporated by
reference in this rule on and after June 1, 2022. By incorporating
these standards by reference into the Commission’s regulations the
Commission has made compliance mandatory and enforceable.
Non-compliance, absent a specific waiver, violates the Commission’s
regulations as well as the terms of each pipeline’s tariff.
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
Final Rule RM96-1-042 NAESB (published).pdf
RM96-1-042 NAESB FERC-545 FERC-549C supporting statement-Final.docx
RM96-1-042 NOPR (Standards for Business Practices of Interstate Natural Gas Pipelines) averaged Years 1-3