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[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 [www.gpo.gov]
[FR Doc No: 2024-28090]

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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.

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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.
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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
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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.
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    \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.
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    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\
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    \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.
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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.
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    \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).
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    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\
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    \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.
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    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\
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    \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).
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    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\
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    \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.
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    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\
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    \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.
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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
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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
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12..............................  Cybersecurity Related Standards.
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    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.
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    \11\ Public Law 104-113, 12(d), 110 Stat. 775 (1996).
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    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\
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    \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.''
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    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\
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    \13\ Informational Report at 4.
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    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\
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    \14\ The matrix identifies the data elements needed to 
communicate the results of the allocation process.
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    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\
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    \15\ Informational Report at 5.
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    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\
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    \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).
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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.
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    \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 www.ferc.gov/ferc-online/elibrary. 
All interstate natural gas pipelines are to file their tariff 
records in conformance with this sample tariff record.
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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.
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    \20\ Order No. 587-V, 140 FERC ] 61,036 at PP 36-39.
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    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:
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    \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\
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    \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\
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    \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).
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    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\
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    \25\ Public Law 104-113, 12(d), 110 Stat. 775 (1996), 15 U.S.C. 
272 note (1997).
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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.
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    \26\ 1 CFR 51.5 (2023). See Incorporation by Reference, 79 FR 
66267 (Nov. 7, 2014).
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    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.
     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.
    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: 
www.naesb.org/. 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.
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    \27\ For more information on Locklizard, please refer to the 
company's website: www.locklizard.com.
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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.
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    \28\ 5 CFR 1320.11 (2023).
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    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.
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    \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)
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                                             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)
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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..................
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    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:
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    \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 www.bls.gov/oes/current/naics3221000.htm) and 
scaled to reflect benefits using the relative importance of employer 
costs for employee compensation (available at 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), $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: 
[email protected].
    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:
     eFiling at Commission's website: 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

    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.
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    \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).
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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.
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    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).
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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 (www.ferc.gov/).
    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 
[email protected], or the Public Reference Room; phone: (202) 
502-8371, TTY (202) 502-8659; email: [email protected].

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: [email protected]; 
website: https://www.ferc.gov. For information on the availability of 
this material at NARA, visit www.archives.gov/federal-register/cfr/ibr-locations or email [email protected]. 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: 
https://www.naesb.org/.
* * * * *
[FR Doc. 2024-28090 Filed 12-6-24; 8:45 am]
BILLING CODE 6717-01-P
```