Opinion ID: 392942
Heading Depth: 1
Heading Rank: 4

Heading: ferc jurisdiction over the great plains plant

Text: 47 FERC would have us characterize its Opinion No. 69 as merely an authorization for the applicant to sell at some time in the future a mixture of synthetic and natural gas to its affiliated interstate pipelines. In certificating these future sales, the Commission claims, it simply took into consideration the full cost of producing the synthetic gas. This characterization of the certification, as one merely for the future sale of commingled gas, is critical to FERC's position because in Henry v. FPC, 513 F.2d 395 (D.C.Cir.1975), this court held that the Commission had no jurisdiction over the production, sale or transportation of coal gas prior to its commingling with natural gas. 48 The Henry case arose as a result of three applications, filed with the Commission pursuant to § 7 of the Natural Gas Act, for certificates of public convenience and necessity. Two of the applications sought certificates to construct and operate facilities to transport synthetic gas and introduce such gas into pre-existing natural gas lines where it would then be commingled. Another application sought a certificate to construct and operate a coal gasification facility. The Commission, in Opinion No. 663, 50 FPC 651 (1973), held, inter alia, that it had no jurisdiction to issue certificates for the production, sale or transportation of coal gas prior to its commingling with natural gas, 22 and the Henry court sustained the FPC's determination of no jurisdiction, 513 F.2d at 398. Because Henry therefore precludes any assertion of authority to issue a certificate for construction or operation of the Great Plains synfuel production facility, FERC asks this court to distinguish Opinion No. 69 from Henry, and see its action here merely as a full exercise of its authority to certificate future sales of commingled gas. 49 It is apparent that the sponsors carefully drafted their proposal to take advantage of FERC's acknowledged authority to certificate sales of commingled gas, and thereby hoped to avoid the Henry limitation on FERC's authority to certificate or regulate synthetic gas plants. But, in fact, Opinion No. 69 cannot be viewed simply as an authorization for the sale of commingled gas; nor can it be viewed simply as an authorization for charging rates and tariffs applicable to such gas sales which properly take account of the full cost of producing the synthetic component of a commingled natural-synthetic gas product. On the contrary, both the Great Plains application, J.A. at 359-70, and its acceptance with certain modifications by FERC in Opinion No. 69, must be viewed realistically as directed toward obtaining financing for the proposed synthetic gas facility. Opinion No. 69 thus is the midwife indispensible for the project's coming into being at all. Although Opinion No. 69's orders are appropriately couched in terms of certificates for the transportation and sale of commingled gas, they are actually far more than that; they are designed to provide the Great Plains sponsors with nothing less than extraordinary financial guarantees: 23 ratepayer-based guaranteed recovery of invested capital, and contemporaneous recovery of financing costs during construction, both of which these sponsors insist upon in order to proceed with the project. As FERC Commissioner Holden wrote in Opinion No. 69: 50 The only reason this project is here is financing. Only by securing a structure which allows the project costs to be assigned to ratepayers can the sponsors get moving. Otherwise, it is an oddity that, in this season of increased deregulation, companies should ask us to stretch our jurisdiction and include what we would normally not cover. This is not a gas supply project, but a financing package.... (The Commission) is being asked to undertake the role of facilitating the investment program of the participating companies. 51 FERC Opinion No. 69, Holden, Commissioner, concurring in part, dissenting in part, at 2 (emphasis supplied). In short, we are dealing with an attempt by FERC to utilize its certification and rate setting powers to make possible financing for the prospective construction of a nonjurisdictional, commercial-size coal gasification plant. 52 Two distinct features of Opinion No. 69 convince us that ours (and Commissioner Holden's) is the proper characterization of FERC's action, and that FERC's own description of Opinion No. 69 as nothing but a certification of future sales of gas seriously misses the mark, distorting rather than clarifying what it has done. First, the facility which is the object of the ratepayer-based financing scheme bears at best a tenuous relationship to any future jurisdictional sale or shipment of gas. The hypothetical sale of commingled gas is remote in time, place, and possibly even probability of occurrence, from the focus of this order. Evidence of this is found in the order itself, where FERC refused to certify any transportation system which would connect the synthetic gas plant to the natural gas pipeline system and enable the jurisdictional sale to take place. In denying certification for a proposed transportation facility, the Commission noted, despite all of the assurances regarding the relative certainty of the technology to be employed in the gasification process, we cannot be unaware that a possibility nevertheless exists that abandonment of the project may occur during the construction period. FERC Opinion No. 69, at 102-03; see id. at 113. Therefore, the future jurisdictional sale upon which FERC bases its authority to approve this financing package, see infra at pp. 27-9, may never even take place. Even if it does, the sale will occur years after the construction surcharges have gone into effect, at a location hundreds of miles from the site of this project and in a different state, and in an amount so insignificant that it will represent less than 2% of the ratepayers' gas supply. 24 53 A second factor fueling our skepticism of FERC's description is that the gasification plant will actually be regulated during the construction and pre-operation period by the Commission pursuant to its Opinion No. 69. 25 Aside from the obvious regulatory features of setting rates of return for the sponsors and pricing provisions for the ratepayers, there are additional, substantial regulatory features in Opinion No. 69 which relate to the plant's construction and operation: (1) FERC requires the installation of a project monitoring system whose details are as yet uncertain, but may include periodic reports from the sponsoring companies, on-site inspection by Commission or Department of Energy personnel, auditing of construction and operating expenses, or review of final design and plant specifications. FERC Opinion No. 69, at 109. Significantly, at oral argument FERC's counsel volunteered the information that two FERC staff people are already working full-time at the home office of the applicant overseeing daily the various aspects of the early construction phase. 26 (2) FERC requires that Great Plains keep its books in accordance with accounting procedures established by the Commission for the books of jurisdictional gas pipeline companies. Id. at 115. 27 (3) FERC retains authority to determine whether any costs which Great Plains has incurred may not have been reasonably and prudently incurred .... Id. (4) FERC has reserved the right to order an abandonment of the project whenever it concludes that continued construction or continued operation is no longer in the public interest. Id. at 106. (5) FERC requires that the sponsors secure its permission before abandoning the project prior to completion. (Of course after completion when gas from the plant is commingled, FERC would have such authority under § 7(b).) Id. at 65. (6) FERC requires that no sponsoring company may withdraw its support from the project without prior FERC approval. Id. at 114. 54 Thus Opinion No. 69 mandates a major role for FERC not only in arranging financing for a non-jurisdictional facility, but also in regulating its construction and operation (or non-operation). In fact, we find it difficult to see how FERC can at the same time disclaim authority to regulate the Great Plains facility, and also issue Opinion No. 69 which has all the characteristics of regulation except the name. This court is well aware of the beneficent motive the protection of ratepayers which prompted FERC to insist upon including regulatory features as a condition of approving the sponsor's financing scheme. But however beneficent the regulation, it is regulation nonetheless. In fact, the very necessity for ongoing FERC regulation and oversight of the plant involved in this particular financing scheme puts in stark relief the question now before this court of whether FERC has jurisdiction under the Natural Gas Act to order this particular ratepayer-based financing package for the construction of a commercial-size coal gasification plant. 55
56 FERC asserts jurisdiction for its action under the Natural Gas Act; yet that statute is devoid of any mention of authority to arrange financing for, or to regulate, coal gasification plants. We must therefore turn to an analysis of the text and legislative history of the Act to discern the general limits of FERC's jurisdiction regarding synthetic gas. 57 Section 2 of the Act defines natural gas as either natural gas unmixed, or any mixture of natural and artificial gas, and defines natural-gas company as a person or corporation engaged in the transportation of natural gas in interstate commerce, or the sale in interstate commerce of such gas for resale. 28 15 U.S.C. § 717a. It is only over such gas and such companies that FERC has jurisdiction pursuant to the Act. Section 7 of the Act provides the Commission with authority to issue certificates of public convenience and necessity to natural gas companies who wish to construct or extend facilities to be used in the sale or transportation of natural gas, 15 U.S.C. § 717f(c)(1)(A), while Section 4 of the Act delegates to the Commission authority to regulate all rates and charges relating to transportation or sale of natural gas subject to the jurisdiction of the Commission.... 15 U.S.C. § 717c. The plain meaning of these sections gives no indication that Congress intended FERC to utilize either its Section 4 or Section 7 powers as it has in Opinion No. 69. 29 58 The legislative history of the Act provides evidence of Congressional intent not to vest any authority with the Commission over unmixed synthetic gas. In hearings on a precursor of the bill that became the Natural Gas Act a proposal was made by a witness to delete the word natural throughout the bill and define gas as either natural gas or artificial gas or any mixture of natural and artificial gas. Subcommittee of the House Committee on Interstate and Foreign Commerce, Hearings on H.R. 11662, 74th Cong., 2d Sess. 92, 98 (1936). The proponents of the suggestion were concerned that (1) pipeline companies would attempt to avoid FPC jurisdiction by injecting a small amount of artificial gas into their natural gas line, and that (2) artificial gas unmixed with natural gas would escape the Commission's jurisdiction altogether. In the next session of Congress, an amendment was added to the natural gas regulation bill responding only to the former of these concerns, namely, that regulation not be evaded by mixing artificial with natural gas; the amendment made no attempt to regulate unmixed artificial gas. Subsequently, in Senate debates on the proposed act, a colloquy between Senators Connally and Wheeler made explicit the understanding that the act would not reach artificial gas. 81 Cong.Rec. 9315-16 (1937). 59 In our prior review of the legislative history of the Natural Gas Act, Henry v. FPC, 513 F.2d 395 (D.C.Cir.1975), this court concluded that Congress had made a deliberate decision not to extend Commission jurisdiction to such gas:(The) legislative history gives fair indication that Congress had been made aware of the potential of interstate transmission of artificial gas, but had decided to defer that matter for resolution when the technical future might become an economic reality, rather than deal with it hypothetically. There was nothing to indicate that the Act was intended to become applicable automatically, without further Congressional determination, some time in the future as it happens, almost 40 years later when large-scale interstate transportation of manufactured gas should become both a technical and economic reality. 60 Id. at 401. 30 We agree with this analysis, and conclude that Congress did not intend to vest in the Commission any direct authority over the manufacture of unmixed synthetic gas.
61 FERC's argument that it has jurisdiction to order this ratepayer financing scheme, along with its regulatory features, is based on two premises. First, the Commission contends that although it 62 has no jurisdiction under the Natural Gas Act over the project facilities in North Dakota, ... (o)nce the output of the gasification plant has been commingled with natural gas, however, the Commission would possess full and complete jurisdiction to regulate any subsequent transportation of the gas in interstate commerce and its sale in interstate commerce for resale for ultimate public consumption .... The Commission's involvement arises by virtue of several Section 7 applications for certificates to transport commingled coal gas and natural gas and to make sales thereof for resale to the Customer Pipeline Companies. 63 Opinion No. 69, at 12 (emphasis supplied). This assertion of jurisdiction, however, proves too little. No one in this litigation has questioned FERC's authority to assert full regulatory authority including the power of rate and tariff setting over the transportation and sale of Great Plains synthetic gas subsequent to its creation and commingling with natural gas. FERC goes on to assert, however, that 64 the Commission's jurisdiction over the transportation and sale for resale of the commingled gas gives it a corollary authority and responsibility to look into 'all factors bearing on the public interest'  .... Henry v. FPC, 513 F.2d at p. 405. 65 Id. (emphasis partially supplied). FERC would have us treat the construction and financing of the Great Plains plant as factors which the Commission may look into when it considers certificating sales of commingled gas from the plant. This corollary authority claim, relying on this court's opinion in Henry, warrants our close scrutiny. The issue is whether FERC has any so-called corollary authority to use its rate setting and certification tools for the purpose of arranging financing for, and regulating the construction of, commercial-size coal gasification plants. 66 In Henry we stated that, when considering certification for jurisdictional facilities, FERC has corollary authority to consider ... 'all factors bearing on the public interest.'  31 The all factors language was used to describe the breadth of considerations which the Commission may take into account when reviewing applications for certification under § 7 for, say, tap and valve facilities to introduce gas from coal into natural gas pipelines, i. e., for facilities over which Commission jurisdiction is unquestioned. 513 F.2d at 403. Absent those jurisdictional facilities or acts, the court in no way suggested that any corollary authority would exist at all. In this case, by contrast, the very existence of a relevant jurisdictional act upon which to predicate the corollary authority is in doubt. See pp. 1143-1144 supra. Furthermore, even assuming arguendo that a relevant jurisdictional act exists in this case, then the corollary authority spoken of in Henry would permit FERC simply to consider all factors in reaching its decision, not to establish and regulate the factors themselves. 513 F.2d at 403. 67 But there is a second answer to FERC's corollary authority argument in this case. Any such authority to consider all factors bearing on the public interest must take into account what the public interest means in the context of the Natural Gas Act. FERC's authority to consider all factors bearing on the public interest when issuing certificates means authority to look into those factors which reasonably relate to the purposes for which FERC was given certification authority. It does not imply authority to issue orders regarding any circumstance in which FERC's regulatory tools might be useful. In carrying out its statutory certification task FERC must recognize that a need for federal regulation does not establish FPC jurisdiction that Congress has not granted. FPC v. Louisiana Power & Light Co., 406 U.S. 621, 635-36, 92 S.Ct. 1827, 1836, 32 L.Ed.2d 369 (1972) (original emphasis). 68 A similar issue was presented to the Supreme Court in NAACP v. FPC, 425 U.S. 662, 664-65, 96 S.Ct. 1806, 1808-1809, 48 L.Ed.2d 284 (1976), which concerned the Commission's authority to prohibit discriminatory employment practices on the part of its regulatees. Regarding petitioners' assertion that references in the Natural Gas Act to the Commission's authority to regulate in the public interest implied authority to prohibit racial discrimination, the Court declared: 69 This Court's cases have consistently held that the use of the words public interest in a regulatory statute is not a broad license to promote the general public welfare. Rather, the words take meaning from the purposes of the regulatory legislation. 70 .... 71 Thus, in order to give content and meaning to the words public interest as used in the Power and Gas Acts, it is necessary to look to the purposes for which the Acts were adopted. In the case of the Power and Gas Acts it is clear that the principal purpose of those Acts was to encourage the orderly development of plentiful supplies of electricity and natural gas at reasonable prices. While there are undoubtedly other subsidiary purposes contained in these Acts, the parties point to nothing in the Acts or their legislative histories to indicate that the elimination of employment discrimination was one of the purposes that Congress had in mind when it enacted this legislation. 72 Id. at 669-70, 96 S.Ct. at 1811. (emphasis supplied). See also Henry, supra, 513 F.2d at 402; Mobil Oil Corp. v. FPC, 463 F.2d 256, 263 (D.C.Cir.1971), cert. denied, 406 U.S. 976, 92 S.Ct. 2409, 32 L.Ed.2d 676 (1972). 73 Our own review, Section B supra, of the purposes reasonably attributable to Congress in authorizing FERC's certification and rate setting powers reveals that it did not intend to vest FERC with those powers for the purpose of regulating and arranging financing for facilities, like Great Plains, devoted exclusively to manufacturing synthetic gas. We therefore hold that Opinion No. 69 exceeded the Commission's statutory authority because it attempted to create a ratepayer-based financing package for the construction of a commercial-size coal gasification plant despite the fact that its rate setting and certificating powers were not granted to it for that purpose; and because it purported to regulate the construction and operation of such plant despite the fact that FERC has no regulatory jurisdiction over any aspect of synthetic gas development prior to its commingling with natural gas. 74 Nothing in this holding denies FERC any authority it may have to consider the costs of production of synthetic gas in the course of considering jurisdictional sales rate filings and petitions under Section 4 of the Natural Gas Act, 15 U.S.C. § 717c, or to give advance notification that it will do so pursuant to its Order No. 566. However, FERC may not overstep the limits of its jurisdiction by claiming that Order No. 566 or any cases purportedly decided under it can serve as authority for charging ratepayers for the construction of non-jurisdictional facilities before those facilities participate in activities properly regulated by the Commission. 32 Nor may FERC use its Section 7 authority to order a financing package such as the one involved here, which imposes financing surcharges and debt guarantees upon natural gas pipeline customers for the construction of facilities which, it is hoped, will some day in the future produce synthetic gas. 75
76 We believe our holding that the Natural Gas Act does not vest FERC with authority to promote commercial coal gasification plants is consistent with recent Congressional activity in the natural and synthetic gas fields. Furthermore, viewing Opinion No. 69 in conjunction with this recent legislative activity, we are convinced that FERC improperly ignored recent Congressional action directly affecting the financing of the Great Plains project. 77 1. A review of the legislative history in the energy area subsequent to enactment of the Natural Gas Act shows that Congress repeatedly has declined to extend FERC's jurisdiction to include synthetic gas. In 1973-74 two bills were introduced in Congress which would have extended Commission jurisdiction to unmixed synthetic gas. S. 3861, 93d Cong., 2d Sess., 120 Cong.Rec., 25925 (1974); see also S. 2506, § 105, 93d Cong., 1st Sess., 119 Cong.Rec. 32163 (1973). Neither bill was passed. Additionally, during Congressional consideration of various bills which ultimately became the Natural Gas Policy Act of 1978, Congress specifically disclaimed any intention to include unmixed synthetic gas in its definition of natural gas over which FERC would have jurisdiction. The definition of natural gas is identical to the definition of natural gas provided in the Natural Gas Act. It is not intended to extend the provisions of the Act to facilities for the production of synthetic natural gas.... S.Rep.No.95-1126, 95th Cong., 2d Sess. at 69 (1978) (Conference Report). 78 2. Congress has specifically authorized a different governmental entity the Synthetic Fuels Corporation to provide governmental support for risky synfuel projects, including coal gasification plants. By comparison, FERC's certification and rate setting tools seem inappropriate and inadequate for that task. The Synthetic Fuels Corporation has been given explicit authority to provide various types of financial assistance to private synthetic fuel projects. ESA 33 at § 131. Under the first phase of its mandate, through June 30, 1984, the Corporation is authorized to commit up to $20 billion, subject to specific appropriations. ESA at §§ 151(a), 152(a), 195(a). After June 30, 1984, an additional $68 billion may be appropriated upon Congressional approval of the Corporation's overall strategy to achieve the established production goals. ESA at § 126(b), (c). In addition, the Act provides interim authority to provide financial assistance of up to $3 billion for immediate commitment to synthetic fuel projects. ESA at § 105(a), amending the Defense Production Act of 1950, § 711(a)(2), 50 U.S.C.App. § 2161(a). 34 The Act also specifically authorizes the Department of Energy to make a solicitation, thirty days after enactment, for commercial scale high-Btu coal gasification plants. ESA at § 127(e). 79 However, whether coal gasification will eventually prove to be the most advantageous synfuel option from among the variety of those now on the horizon is acknowledged to be unclear. See generally S.Rep. 96-387, supra, at 134-35 (varying estimates on likely projected output from coal gasification plants); Synthetic Fuels from Coal, supra note 6, passim. Despite many sanguine assessments as to its potential, there are those who urge either slow, selective development of demonstration coal gasification plants, or none at all. See, e. g., Ford Foundation, Energy: The Next Twenty Years 53, 546, 559, 579 (1979) ((T)here is no economic justification for pushing ahead with large-scale commercial coal-to-pipeline gas projects at this time. Id. at 53. Little urgency attaches to deploying a high-Btu gasification plant. Id. at 579.); Allain, Environmental Implications of a Synthetic Fuel Industry, 4 Harv.Environ.L.Rev. 391, 402, 412 (1980). 80 In light of the many uncertainties and options in this area, Congress wisely delegated responsibility to the Synthetic Fuels Corporation to develop a comprehensive strategy to achieve the nation's synthetic fuel production goals. ESA at § 126(b). As part of the comprehensive strategy, Congress directed the corporation to consider all practicable means for the commercial production of synthetic fuel, employing the widest diversity of feasible technologies. In awarding financial assistance, the corporation must consider 81 the diversity of technologies (including differing processes, methods, and techniques); ... the potential cost per barrel or unit production of synthetic fuel from the proposed synthetic fuel project; ... the overall production potential of the technology, considering the potential for replication, the extent of the resource and its geographic distribution, and the potential end use; and ... the potential of the technology for complying with applicable regulatory requirements. 82 Id. at § 131(b)(3). Congress provided the corporation with a variety of financing tools, including price guarantees, purchase agreements, loan guarantees, loans, and joint ventures, and delineated both an order of preference for using the tools as well as factors to be considered in applying them to particular projects. Id. at § 131(b)(2). 83 Thus, Congress carefully crafted a special means for providing federal financial assistance for synfuel development. The Congressional plan for developing the nation's synfuel capability is an integrated, comprehensive one, delegating specific authority to the Synthetic Fuels Corporation to take into account both the various synfuel options as well as the various financial tools available for synfuel promotion, and to accommodate both within a national synfuel production policy. 84 By way of contrast, however, FERC was never given the job of developing a comprehensive strategy for developing the nation's synfuel industry. It possesses no expertise in making determinations regarding the relative merits of different synfuel processes, methods or technologies. Nor can it fairly and freely evaluate the various financing strategies available in theory for particular synfuel plants and select those best suited for each project. Its statutory authority in this area is limited to certification and rate setting on the basis of applications presented to it. In rejecting loan guarantees as an alternative financing option in this case, for example, FERC stated that it was an academic matter because we do not have before us a proposal involving all taxpayers ... and that option is not in our power to order. Opinion No. 69, at 45. 35 85 Quite possibly because its options were thus limited, FERC approved financing arrangements which, whether or not they violated the public convenience and necessity standard as the Administrative Law Judge found, 36 were certainly not ordered with the interests of ratepayers foremost in mind, 37 but rather with an eye toward keeping the Great Plains project on track. The construction surcharge and the treatment of applicants' investment tax credit stand out as particularly questionable provisions of the approved scheme in terms of ratepayers' interests. By utilizing its statutory tools for a non-statutory purpose, FERC very likely was distracted from its primary statutory duty to protect the interests of ratepayers. See Atlantic Refining Co. v. Public Service Commission, 360 U.S. 378, 388, 79 S.Ct. 1246, 1253, 3 L.Ed.2d 1312 (1959); FPC v. Hope Natural Gas Co., 320 U.S. 591, 610, 64 S.Ct. 281, 291, 88 L.Ed. 333 (1944) (The primary aim of (the Natural Gas Act) was to protect consumers against exploitation at the hands of natural gas companies.); Henry v. FPC, supra, 513 F.2d at 403. 86 3. Opinion No. 69 and its companion Opinion No. 69-A improperly ignored contemporaneous Congressional action directly affecting the financing of the Great Plains facility. FERC's action, when viewed in light of this Congressional activity, seems to have been prompted at least in part by an attitude that because it felt Congress had not acted speedily, it would take up the slack. See Opinion No. 69, Holden, Commissioner, concurring in part and dissenting in part, at 6 (The constitutional regime does not permit us to say 'Congress hasn't done it. We're going to do it.' ). Cf. Opinion No. 69, at 43, 45 (majority acknowledges that it may be correct ... that ... the costs would best be shared by (the taxpayers), but finds evidence indicating that it might take two years to obtain such financing from Congress). It is not for an administrative agency, however, to preempt Congressional action or to fill in where it believes some federal action is needed. It goes without saying that appropriate respect for legislative authority requires regulatory agencies to refrain from the temptation to stretch their jurisdiction to decide questions of competing public priorities whose resolution properly lies with Congress. Cf. American Ship Building Co. v. NLRB, 380 U.S. 300, 317-18, 85 S.Ct. 955, 966-967, 13 L.Ed.2d 855 (1965) (Court rejected the role assumed by the Board to assess the relative economic power of adversaries in the collective bargaining process, warning against the unauthorized assumption by an agency of major policy decisions properly made by Congress.) 87 Before, during, and after the Commission's issuance of Opinion No. 69, Congressional attention was specifically focused on the degree and nature of federal financial support for synfuels. Just three weeks before Opinion No. 69 was handed down, the House of Representatives held hearings on the Great Plains gasification project, and was told by Deputy Undersecretary of Energy Robert Hanfling that (w)e intend, hopefully through the Energy Security Corporation, which would be the proper vehicle in the future, for loan guarantees ... to be provided to the project. Oversight: Great Plains Gasification, Hearing Before the Subcommittee on Energy Development and Applications of the Committee on Science and Technology, 96th Cong., 1st Sess. 23 (Nov. 2, 1979). Another witness, Mr. Arthur R. Seder, Jr., Chairman and President of American Natural Resources Company, told the Committee that each of the bills (currently under consideration) could be applied to the Great Plains Project because they carry one concept in common. Each offers financial support through two devices: price supports and loan guarantees. Id. at 64. In fact, the Committee was informed by Mr. Seder that although FERC was then considering approval of consumer backstopping for the project, the Commission's draft conclusions (not yet issued) would provide for shifting the risk of backstopping the debt to the public at large in the event Congress makes loan guarantees available. Id. at 85. Thus Congress was clearly aware of the role which loan guarantees might play in the financing of Great Plains, and was actively considering such financing for the project immediately prior to FERC's action. 88 One week after the above testimony was heard, Congress, on November 9, 1979, enacted and sent to the President for signature the first appropriations under FERDA, 38 P.L. 96-126, 93 Stat. 954, at 970-71 (1979). The President signed the bill into law on November 27, 1979. Title 2 of the statute permitted the Department of Energy to make loan guarantees of up to $1.5 billion under FERDA without any requirement for prior Congressional approval for facilities costing in excess of $50 million as otherwise would have been required by the FERDA statute. In addition, the conference report specifically directed that $22 million in additional funds should be made available to the Great Plains project for preliminary work on a commercial coal gasification facility. H.Rep.No.96-604, 96th Cong., 1st Sess. 28-29 (1979). Although the appropriations bill was passed two weeks prior to the issuance of Opinion No. 69 by FERC on November 21, the Commission failed even to mention it. And while the appropriations Act was signed by the President on November 27, almost two months before the Commission issued its January 21, 1980 decision on rehearing, Opinion No. 69-A, the Commission again made no reference to it. This sequence of events convinces us that FERC made no effort to accommodate its action regarding Great Plains with what it knew was imminent if not actual Congressional action regarding the financing of synfuels generally, and Great Plains specifically. 89 In sum, a review of recent Congressional activity concerning synfuels supports our conclusion that the Commission acted without proper authority in ordering Opinion No. 69. Congress has repeatedly declined to permit any extension of FERC authority into the synthetic gas area; on the other hand, it has specifically authorized a different governmental unit to undertake the tasks which FERC sought to perform through questionable use of its regulatory tools. In addition, FERC improperly ignored contemporaneous Congressional activity in its attempt to fill in where it believed some federal financial help was needed.