The U.S. Federal Energy Regulatory Commission is offering to consult with gas pipelines to resolve problems before the lines file applications to build or abandon facilities.
FERC said the voluntary collaborative process is designed to improve communications, expand public participation, and resolve potential conflicts earlier in the filing process.
Under the program, applicants must notify FERC, the public (including landowners), and state and local governments that they intend to engage in prefiling consultations. The applicants also have the option of working with FERC staff and other interested parties to complete environmental studies before making a formal filing.
FERC said the collaborative process is similar to a program used since October 1997 for hydroelectric licenses. It said that process has reduced its review time.
Separately, the commission announced a policy to give preference to pipeline projects that are built without subsidies from existing customers over those based on rolled-in pricing. The commission formerly had a presumption in favor of rolled-in pricing, which allows construction costs to be recovered from existing customers. It explained that recovering construction costs only from customers benefiting from the new project "sends the proper price signals to the market" and allows the market to decide whether a project is financially viable.
The policy will require FERC to consider factors such as demand projections, potential cost savings to consumers, and capacity currently available for a particular market. The commission said it would not preclude rolled-in pricing under certain circumstances, such as when a pipeline project improves service to current customers by replacing existing capacity or improving reliability or flexibility.
