Below are summaries of the agenda items for the Federal Energy Regulatory Commission's open meeting to be held on February 15, 2024, pursuant to the sunshine notice released on February 8, 2024.
In this issue
- Electric
- Miscellaneous
- Hydro
- Certificates
Electric
E-1 – North American Electric Reliability Corporation (Docket No. RD24-1-000). On October 30, 2023, pursuant to Section 215 of the Federal Power Act (FPA), the North American Electric Reliability Corporation (NERC) submitted for Commission approval proposed revised Reliability Standard EOP-011-4 (Emergency Operations) and Reliability Standard TOP-002-5 (Operations Planning) containing new and enhancements requirements for cold weather operations and preparedness. Agenda item E-1 may be an order on proposed Reliability Standard EOP-011-4 and Reliability Standard TOP-002-5.
E-2 – Constellation Mystic Power, LLC (Docket No. ER18-1639-026). On April 27, 2023, in Docket No. ER18-1639-024, Constellation Mystic Power, LLC (Mystic) filed a limited request for rehearing and, in the alternative, request for clarification (Rehearing Request) of the Commission's March 28, 2023 Order on Remand and on Motion to Hold in Abeyance. In addition, in Docket No. ER18-1639-000, on May 19, 2023, Public Systems filed a motion for an order directing ISO-NE to release additional information concerning its audit of performance under the Mystic Agreement (Motion to Disclose), and, on May 25, 2023, Mystic filed a motion to lodge the audit controls report (Audit Controls Memorandum) that ISO-NE posted on its website on May 25, 2023 (Motion to Lodge). On October 6, 2023, the Commission issued an order modifying in part and setting aside the March 28, 2023 Order on Remand, granting the Motion to Lodge, and denying the Motion to Disclose. On November 6, 2023, Braintree Electric Light Department submitted a request for rehearing of the Commission's October 6, 2023 order. Agenda item E-2 may be an order on the request for rehearing of the Commission's October 6, 2023 order.
E-3 – Wisconsin Electric Power Company (Docket No. ER24-646-000). On December 13, 2023, Wisconsin Electric Power Company (Wisconsin Electric) filed a request for a limited, prospective, one-time waiver of certain requirements of Section 3.7.1(i) of Attachment X of the Midcontinent Independent System Operator, Inc. (MISO) Open Access Transmission, Energy and Operating Reserve Markets Tariff (MISO Tariff). Specifically, Wisconsin Electric requests waiver of the MISO Tariff's generator interconnection procedure requirements to permit Wisconsin Electric to interconnect the replacement of the Oak Creek's plants new natural gas-fired combustion turbine generating with American Transmission Company's (ATC) transmission system at a different voltage level than provided for in the original Generator Interconnection Agreement for Oak Creek to accommodate ATC's current efforts to enhance its 138 kV and 345 kV transmission systems and to eliminate its 230 kV facilities. Agenda item E-3 may be an order on Wisconsin Electric's waiver request.
E-4 – California Independent System Operator Corporation (Docket No. ER24-494-000). On November 29, 2023, California Independent System Operator Corporation (CAISO), pursuant to Rule 207 of the Commission's Rules of Practice and Procedure and section 37.9.4 of the CAISO Open Access Transmission Tariff (CAISO Tariff), filed a petition for approval of distribute a $16,500 penalty assessed in 2020 against Tenaska Power Services Co. (Tenaska) in its role as scheduling coordinator for Blue Lake Power, LLC (Blue Lake) for a violation of CAISO Tariff section 37.6.1. Agenda item E-4 may be an order relating to CAISO's petition.
E-5 – THSI bn, LLC (Docket No. TX23-5-000). On June 21, 2023, THSI bn, LLC's (THSI) filed an application, under sections 210 and 212 of the FPA, requesting a proposed order from the Commission directing AEPCO to provide interconnection service to THSI's proposed Three Sisters Solar Project (Project) at AEPCO's Apache 230 kV Substation. THSI also requested that the Commission issue an order directing AEPCO and THSI to finalize, within 15 days from the date of the Commission's order, the Large Generator Interconnection Agreement (LGIA) that the parties were previously negotiating before AEPCO terminated negotiations and directing AEPCO to restore the Project to its position in the AEPCO interconnection queue. On July 3, 2023 and July 21, 2023, respectively, AEPCO filed a motion to intervene and a protest (AEPCO Protest). On July 21, 2023, American Public Power Association, Large Public Power Council, and National Rural Electric Cooperative Association (collectively, Associations) filed a joint protest (Associations Protest). On August 7, 2023, THSI submitted an answer to the protests (THSI August 7 Answer). On August 18, 2023, AEPCO filed an answer to THSI's answer (AEPCO August 18 Answer). On August 21, 2023, Associations filed an answer to THSI's answer (Associations Answer). On September 5, 2023, THSI submitted an answer to AEPCO's and Associations' answers (THSI September 5 Answer). On October 19, 2023, the Commission directed AEPCO to provide the requested interconnection service to THIS and required the parties to make a filing by November 20, 2023, with the Commission setting forth terms and conditions for carrying out the order, including the apportionment of and compensation for costs, and addressing other matters. On November 16, 2023, THSI and AEPCO jointly requested, and the Commission granted, a fifteen-day extension of time – until December 5, 2023. On December 5, 2023, THSI and AEPCO informed the Commission that they have reached an agreement on the LGIA but required time to finalize certain ancillary agreements and prepare the filing for Commission consideration. On December 12, 2023, the parties submitted the proposed LGIA and three other agreements that are a necessary part of the interconnection. Agenda item E-5 may be an order on the proposed LGIA and other ancillary interconnection agreements.
E-6 – System Energy Resources, Inc., Arkansas Public Service Commission and, Mississippi Public Service Commission v. System Energy Resources, Inc., Louisiana Public Service Commission v. System Energy Resources, Inc. and Entergy Services, Inc., Louisiana Public Service Commission v. System Energy Resources, Inc. and Entergy Services, Inc., Louisiana Public Service Commission, Arkansas Public Service Commission, Council of the City of New Orleans, Louisiana, and Mississippi Public Service Commission v. System Energy Resources, Inc. and Entergy Services, LLC System Energy Resources, Inc., Louisiana Public Service Commission, Arkansas Public Service Commission, and Council of the City of New Orleans, Louisiana v. System Energy Resources, Inc. Entergy Services, LLC, and Entergy Operations, Inc., System Energy Resources, Inc., Louisiana Public Service Commission, Arkansas Public Service Commission, and Council of the City of New Orleans, Louisiana v. System Energy Resources, Inc., Entergy Services, LLC, and Entergy Operations, Inc. (Docket Nos. ER18-1182-000; EL17-41-000; EL18-142-000; EL18-204-000 (consolidated); EL18-152-000; EL20-72-000; ER21-117-000; ER21-129-000; EL21-24-000; ER21-748-000; EL21-46-000; (consolidated); EL21-56-000; ER22-958-000; ER23-435-000; ER23-816-000; ER23-1022-000; ER23-1164-000; EL24-5-000). On November 17, 2023, Entergy Services, LLC (Entergy Services), as agent for System Energy Resources, Inc. (SERI) and on behalf of Entergy Services, Entergy Corporation, Entergy Nuclear Operations, Inc., and Entergy Arkansas, LLC (collectively, Entergy), and the Arkansas Public Service Commission (APSC), submitted for filing in the agenda item E-6 related dockets a Partial Settlement Agreement to resolve issues in Docket Nos. EL17-41, EL18-142, EL18-204, EL18-152, ER18-1182, EL23-11, EL20-72, ER21-117, ER21-129, ER21-748, EL21-24, EL21-46, EL21-56, ER22-958, ER23- 435, ER23-816, ER23-1164, and EL24-5 (together, the Settlement Dockets). The Settlement Agreement concerns a multitude of issues and challenges regarding SERI's cost-based, Commission-jurisdictional formula rate, the Unit Power Sales Agreement (UPSA). Under the UPSA, SERI sells its 90% entitlement to energy and capacity from the Grand Gulf Nuclear Station to four Entergy Operating Companies. On December 7, 2023, the Louisiana Public Service Commission (LPSC) submitted comments expressing its non-opposition to the settlement between APSC and the Entergy companies. On December 7, 2023, Entergy filed a motion to waive certification of the settlement by the FERC Administrative Law Judges before whom there are active proceedings that are part of the settlement, so that the settlement may be considered directly by the Commission. On December 7, 2023, FERC Trial Staff submitted their comments Initial Comments not opposing the Partial Settlement Agreement. On December 14, 2023, the Council for the City of New Orleans filed reply comments. On December 18, 2023, SERI filed Reply Comments in Support of the Partial Settlement Agreement arguing the partial settlement should be approved as just, reasonable, and in the public interest, and without material modification or amendment, because it resolves more than a dozen disputed dockets between SERI and the APSC in a manner mutually satisfactory to these parties, and it will not adversely affect the interests of any other parties. No participant or party to the settled dockets has expressed opposition to the partial settlement. SERI argued the partial settlement also is consistent with a prior settlement between SERI and the Mississippi Public Service Commission, which the Commission previously approved. Agenda item E-6 may be an order on the partial settlement filed on November 17, 2023.
E-7 – California Independent System Operator Corporation (Docket No. ER24-355-000). On November 2, 2023, California Independent System Operator Corporation (CAISO) sought the Commission's approval for its proposed distribution from the proceeds of penalties collected for violations of the CAISO's Rules of Conduct for the calendar year 2022. Under the Wholesale Distribution Access Tariff (WDAT) of Southern California Edison Company (SCE), CAISO also sought the Commission's approval for its proposed distribution of non-refundable study deposits for projects interconnecting to SCE's distribution system for the calendar year 2022. CAISO stated that the proposed distributions generally follow the methodologies the Commission approved to distribute the two sets of proceeds in prior years. Agenda item E-7 may be an order on CAISO's proposed distribution of penalty proceeds and non-refundable study deposits for interconnection projects.
E-8 – Mid-Atlantic Offshore Development, LLC (Docket No. EL23-101-000). On September 21, 2023, Mid-Atlantic Offshore Development, LLC (MAOD) filed a Petition for Declaratory Order (Petition) requesting that the Commission grants MAOD four Order No. 6793 transmission rate incentives for MAOD's proposed transmission substation, land and related facilities that MAOD will construct, own, operate and maintain based on an October 26, 2022 New Jersey Board of Public Utilities (NJBPU) award to MAOD. On November 22, 2023, MAOD submitted Supplements to the Petition and requested a shortened comment period. On December 6, 2023, as corrected on December 7, 2023, the Long Island Commercial Fishing Association filed a motion opposing MAOD's request for a shortened comment period and requesting a 30-day extension of time to file answers in response to the Supplement. On December 8, 2023, MAOD filed an answer opposing the request for an extended comment period. On December 12, 2023, the Commission set the comment deadline for January 5, 2024. On January 5, 2024 and January 8, 2024, the Long Island Commercial Fishing Association and Michael Dean, respectively, filed comments in opposition of MAOD receiving rate incentives stating that since many of the offshore wind projects that were the impetus for MAOD's project have been canceled, that MAOD's project is unlikely to be completed and as such there is no need for rate incentives. On January 11, 2024, MAOD filed an Answer and Request for Expedited Review of Petition in response to the comments filed opposing rate incentives. Agenda item E-8 may be an order on MAOD's Petition for Declaratory Order on the proposed transmission rate incentives.
Miscellaneous
M-1 – Enforcement of Statutes, Orders, Rules, and Regulations (Docket No. PL24-2-000). The formal record in Docket No. PL24-2-000 has not yet been populated. Agenda item M-1 may be an action that is being taken sua sponte by the Commission and based on the proposed docket and title may be a general policy case with respect to the Enforcement of Statutes, Orders, Rules, and Regulations.
Hydro
H-1 – Neptune Pumped Storage 1, LLC (Docket No. P-15310-000). On May 8, 2023, Rye Development, LLC, on behalf of Neptune Pumped Storage 1, LLC (collectively, Applicant), submitted an application for preliminary permit for the Elephant Rock Pumped Storage Project, located in Curry County, Oregon. The project will involve the construction of new water storage, water conveyance, and generation facilities, as well as primary transmission lines. Applicant stated that the preliminary permit application, pursuant to Part I of the Federal Power Act (FPA), would provide assurance of the viability of the project while it obtains the necessary data and determines the feasibility of the proposed construction activities. A number of stakeholders filed motions to intervene and comments. On August 29, 2023, the Commission issued a letter to Applicant requesting additional information regarding the request for a waiver of section 4.81(c)(2) of the Commission's regulations, whereby Applicant sought to be exempt from the filing of a work plan for new dam construction. The letter refers to comments from the Oregon Water Resources Department, as filed on July 28, 2023, which address a potential concern of new dam construction impacts to endangered fish and wildlife species as well as disturbances to fish and wildlife habitats. On October 10, 2023, Applicant submitted its response to the letter, stating that the proposed geotechnical and seismic investigations would cause only minor alterations and disturbances to lands and waters. Agenda item H-1 may be an order on the preliminary permit application.
H-2 – Neptune Pumped Storage 1, LLC (Docket No. P-15311-000). On May 8, 2023, Rye Development, LLC, on behalf of Neptune Pumped Storage 2, LLC (collectively, Applicant), submitted an application for preliminary permit for the Soldier Camp Pumped Storage Project, located in Curry County, Oregon. The project will involve the construction of new water storage, water conveyance, and generation facilities, as well as primary transmission lines. Applicant stated that the preliminary permit application, pursuant to Part I of the Federal Power Act (FPA), would provide assurance of the viability of the project while it obtains the necessary data and determines the feasibility of the proposed construction activities. A number of stakeholders filed motions to intervene and comments. On August 18, 2023, the Commission issued a letter to Applicant requesting additional information regarding the request for a waiver of section 4.81(c)(2) of the Commission's regulations, whereby Applicant sought to be exempt from the filing of a work plan for new dam construction. The letter refers to comments from the Oregon Department of Fish and Wildlife, as filed on July 18, 2023, which address a potential concern of new dam construction impacts to endangered fish and wildlife species as well as disturbances to fish and wildlife habitats. On September 26, 2023, Applicant submitted its response to the letter, stating that the proposed geotechnical and seismic investigations would cause only minor alterations and disturbances to lands and waters. Agenda item H-2 may be an order on the preliminary permit application.
H-3 – Nature and People First Arizona PHS, LLC (Docket Nos. P-15233-000, P-15234-000, P-15235-000). On October 5, 2021, Nature and People First Arizona PHS, LLC (NPFA) submitted concurrent applications for preliminary permit for the proposed Black Mesa Pumped Storage Projects (respectively in each above-captioned docket: East, North, and South), to be located in Navajo County, Arizona. The proposed projects will each comprise new water storage reservoirs, water conveyance conduits, and generation facilities for a closed-loop pumped storage power plant facility with capacities of 1,500 MW. NPFA stated that the preliminary permit applications, pursuant to Part I of the FPA, were filed to evaluate the potential construction and development of the projects as well as guide the consultation processes with the Navajo Nation. A number of stakeholders filed motions to intervene and comments. On January 13, 2023, NPFA submitted a response addressing the concerns of multiple intervenors, such as the usage of preliminary information that should be considered approximate and not binding during the project evaluation stage. On May 17, 2023, NPFA filed a notice of consultation and resolution with the Navajo Nation, stating that the Kayenta Chapter of the Navajo Nation had adopted a resolution approving the commencement of further dialogue with NPFA to determine the extent of the impact of the projects on the people, land, water, and environment, as well as the benefits to the Kayenta Chapter and its people. Agenda item H-3 may be an order on the preliminary permit applications.
H-4 – Nature and People First New Mexico PHS, LLC (Docket No. P-15293-001). On December 9, 2022, Nature and People First New Mexico PHS, LLC (NPFNM) submitted an application for preliminary permit for the proposed Chuska Mountain Pumped Storage Project, to be located in San Juan and McKinley counties, New Mexico. NPFNM stated that the preliminary permit applications, pursuant to Part I of the FPA, were filed to evaluate the potential construction and development of the projects as well as guide the consultation processes with the Navajo Nation. On April 20, 2023, the Commission issued a deficiency letter to NPFNM, requesting additional information on the project description and instructing NPFNM to revise errors in the preliminary permit application. On June 29, 2023, the Commission issued a letter rejecting the preliminary permit application due to a failure to filing a response to the deficiency letter. On July 12, 2023, NPFNM submitted a revised preliminary permit application. On December 29, 2023, the US Department of the Interior (DOI) filed comments, namely finding that NPFNM did not disclose information about where or how the project will access water from the San Jose River or how it will be conveyed to the proposed reservoirs. Accordingly, DOI stated that the application is deficient and that the Commission should require NPFNM to furnish information regarding the sourcing and transport of water necessary for the proposed project. Agenda item H-4 may be an order on the revised preliminary permit application.
H-5 – Nature and People First Arizona PHS, LLC (Docket No. P-15309-000). On May 2, 2023, NPFA submitted an application for preliminary permit for the proposed Chuska Mountain North Pumped Storage Project, to be located in Apache County, Arizona. The proposed project is a 3,000 MW pumped storage hydroelectric facility. NPFA stated that the preliminary permit application, pursuant to Part I of the FPA, was filed to evaluate the potential construction and development of the projects as well as guide the consultation processes with the Navajo Nation. On September 11, 2023, the Navajo Nation filed a motion to intervene, signaling that it was unclear the level of meaningful consultation that has been undertaken by NPFA as well as stating that the San Juan River, the proposed source of water for the project, is rightfully claimed by the Navajo Nation and is also subject to ongoing adjudication. The Fish and Wildlife Service, Arizona Ecological Services Office, also filed comments on September 11, 2023, identifying various effects that could result from the actions identified in the preliminary permit application. Agenda item H-5 may be an order on the preliminary permit application.
H-6 – Western Navajo Pumped Storage 1, LLC (Docket No. P-15314-000), Western Navajo Pumped Storage 2, LLC (Docket No. P-15315-000). On June 12, 2023, Rye Development, LLC (Applicant) filed concurrent applications for preliminary permits for the Western Navajo Pumped Storage Project No. 1 and Western Navajo Pumped Storage Project No. 2, located in Coconino County, Arizona. The projects are proposed as a closed-loop pumped storage hydroelectric generating facility where no such facilities currently exist. Applicant stated that the projects would be situated entirely on Navajo Nation lands, and through the Navajo-Hopi Land Commission office, the Navajo Nation had preemptively signaled support for Applicant to conduct the preliminary studies necessary to evaluate the potential development and viability of the projects. On November 13, 2023, the US Department of the Interior (DOI) filed comments relating to the preliminary permit applications, stating that there are a number of potential effects that could result from the proposed project development actions stated by Applicant. DOI encouraged Applicant to consult accordingly with other federal agencies and the Navajo Nation in order to identify and evaluate the potential impacts to wildlife, water resources, and land resources. Agenda item H-6 may be an order on the preliminary permit applications.
H-7 – Pacific Gas and Electric Company; Nevada Irrigation District (Docket Nos. P-2310-259, P-14531-003, P-14530-004, and P-2266-128). On April 2, 2021, Pacific Gas and Electric Company (PG&E) filed a petition (Petition) for an order declaring that the California State Water Board (California Board) waived its authority under Section 401(a)(1) of the Clean Water Act (CWA) to issue a water quality certification for the proposed relicensing of the Upper Drum-Spaulding Hydroelectric Project No. 2310, Deer Creek Hydroelectric Project No. 14530, and Lower Drum Project No. 14531 (collectively, the Drum-Spaulding Project). On September 5, 2023, the Commission issued a declaratory order (Declaratory Order) denying the Petition, finding that the California Board did not waive its authority under CWA Section 401. Specifically, the Commission found that the record in this proceeding is devoid of substantial evidence that the California Board sought to engineer an outcome circumventing the one-year deadline, and that the California Board's denial without prejudice of an application does not constitute a failure to act on the part of the state agency. The Commission also noted that PG&E refiled its certification application on February 4, 2020, as to the Upper Drum and Lower Drum Project, and the California Board acted on that application within the one-year deadline required by the CWA, by issuing a water quality certification on February 3, 2021. On September 28, 2023, Nevada Irrigation District filed a request for rehearing (Rehearing Request) of the Declaratory Order, asserting that (a) the Commission failed to look beyond the record of the Declaratory Order proceeding to consider PG&E's series of withdrawals and resubmittals in the larger context of Commission licensing proceedings in California and the pervasive pattern of delays over decades throughout the state due to the withdraw-and-refile scheme, of which the Commission was well aware from its previous orders finding waiver for California projects, (b) the Commission erred by ignoring that the California Board had an incentive to delay water quality certification for the Drum-Spaulding Project because the California Board enacted a regulation in 2000 which prevented it from issuing a water quality certification without a final environmental document under the California Environmental Quality Act (CEQA), even though completion of CEQA for a complex project such as relicensing the Drum-Spaulding Project would almost certainly take more than one year, (c) the Commission erred by failing to find as a matter of law, as it has in other cases, that the California Board's reliance on CEQA, a state process that often takes more than one year to complete, does not excuse non-compliance with the CWA's one-year deadline, and (d) the Commission erred as a matter of law by failing to conclude that, to the extent it was not possible for the State Board to complete CEQA within the one-year period to act on PG&E's certification requests, that CEQA is preempted by the Federal Power Act (FPA) and the CWA. On October 30, 2023, the Commission issued a notice of denial of rehearing by operation of law with respect to the Rehearing Request while providing that the Commission would address the Rehearing Request in a future order. Agenda item H-7 may be an order on the Rehearing Request.
Certificates
C-1 – Tennessee Gas Pipeline Company, L.L.C. (Docket No. CP19-7-002). On December 19, 2019, the Commission issued a certificate order (Certificate Order) under Sections 7(b) and 7(c) of the Natural Gas Act, as amended, and Part 157 of the Commission's regulations, authorizing Tennessee Gas Pipeline Company, L.L.C. (Tennessee) to construct a new 2.1-mile-long, 12-inch-diameter pipeline loop and replace two compressor units at Compressor Station 261 (CS 261) in Hampden County, Massachusetts (261 Upgrade Project). The 261 Upgrade Project is designed to provide 72,400 dekatherms (Dth) per day of firm transportation service on Tennessee's pipeline system from existing interconnections with Maritimes & Northeast Pipeline, LLC (Maritimes) and Portland Natural Gas Transmission System's (Portland) Joint Facilities in Dracut, Massachusetts, and Iroquois Gas Transmission System's facilities in Wright, New York, to the discharge side of CS 261. The 261 Upgrade Project includes a 2.1-mile-long, 12-inch-diameter pipeline loop located adjacent to Tennessee's existing 8-inch-diameter 261BP-100 pipeline and 10-inch-diameter 261B-100 pipeline in Hampden County, Massachusetts. Tennessee also proposed to (x) remove a previously abandoned 6-inch-diameter pipeline where the pipeline loop will be installed adjacent to the 261B-100 pipeline (approximately 1.1 miles of the total pipeline loop length and (y) abandon two compressor units, one 5,490 horsepower (hp) unit and one 1,199 hp unit, at CS 261 in Hampden County, Massachusetts, and replace those units with a single new 11,107 hp natural gas-fired turbine compressor unit. Food and Water Watch and the Berkshire Environmental Action Team filed timely requests for rehearing of the Certificate Order, which requests the Commission denied on February 21, 2020. On March 11, 2022, the U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) issued an order (Remand Order) remanding the Commission's orders in this proceeding. The D.C. Circuit directed the Commission to perform a supplemental environmental assessment in which it must either quantify and consider the project's downstream carbon emissions or explain in more detail why it cannot do so. The D.C. Circuit also explained that, on remand, the Commission remains free to consider whether there is a reasonable end-use distinction based on additional evidence (based on the D.C. Circuit's determination that the Commission had not carried its burden to do so). On September 23, 2023, then-Commissioner James Danly issued a data request to Tennessee in light of the Remand Order, and Tennessee filed responses to such data request on October 20, 2023. Agenda item C-1 may be an order on the Remand Order.
C-2 – Driftwood LNG LLC and Driftwood Pipeline LLC (Docket Nos. CP17-117-001 and CP17-118-001). On April 18, 2019, the Commission issued an order (Certificate Order) pursuant to Sections 3 and 7 of the Natural Gas Act (NGA), authorizing (x) Driftwood LNG LLC (Driftwood LNG) under Section 3 of the NGA to site, construct, and operate facilities for the liquefaction and export of natural gas in Calcasieu Parish, Louisiana (the LNG Terminal) and (y) Driftwood Pipeline LLC (Driftwood Pipeline, and collectively with Driftwood LNG, Driftwood) under Section 7(c) of the NGA to construct and operate a new 48-inch interstate natural gas pipeline system in Evangeline, Acadia, Jefferson Davis, and Calcasieu Parishes, Louisiana (Pipeline Project). The Certificate Order stipulated that Driftwood must fully construct and make available facilities for service within seven years of the date of the Certificate Order. On October 4, 2023, Driftwood requested that the Commission grant an extension of time (2023 Extension of Time Request) of an additional 36 months to construct and operate the LNG Terminal and the Pipeline Project. In its 2023 Extension of Time Request, Driftwood states, despite significant progress with construction, it has encountered unforeseen circumstances in recent years that are preventing it from meeting the Commission's in-service deadline for the LNG Terminal and associated Pipeline Project. Driftwood cites the global upheaval stemming from the COVID-19 pandemic caused cascading market and logistical impacts on workforce, safety, supply chain, and investment in infrastructure projects; these circumstances caused unforeseeable difficulties for LNG project development and made securing long-term LNG commercial commitments difficult over the last several years. The 2023 Extension of Time Request accordingly requests that the Commission grant Driftwood a 36-month extension of time so that it has the required time to: (i) receive its long lead manufactured equipment, which cannot be manufactured and delivered to the site in time to meet the current deadline; (ii) install the equipment and construct the remaining facilities; and (iii) continue to attract and secure customers and financing. Agenda item C-2 may be an order on the 2023 Extension of Time Request.
C-3 – Saguaro Connector Pipeline, LLC (Docket No. CP23-29-000). On December 20, 2022, Saguaro Connector Pipeline, LLC (Saguaro) filed an application (Application) with the Commission requesting a Presidential Permit and authorization pursuant to Section 3 of the Natural Gas Act (NGA) and Part 153 of the Commission's regulations, to construct and operate natural gas pipeline facilities at the United States-Mexico international border. The proposed border crossing facilities would have a design capacity to export up to 2.834 billion standard cubic feet per day of natural gas at the border between the United States and Mexico. Specifically, the proposed Saguaro Connector Pipeline Project (Project) refers to the approximate 1,000 feet of 48-inch-diameter natural gas pipeline (Border Facilities), 6.9-mile temporary access road, and two additional temporary workspaces at the beginning and end of the access road. The Border Facilities pipeline would cross the International Boundary under the Rio Grande River (Rio Grande) between Hudspeth County, Texas and the State of Chihuahua, Mexico, and would be installed using the Direct Pipe® trenchless method. The new pipeline would connect an intrastate, non-jurisdictional pipeline originating in Pecos County, Texas to a non-jurisdictional pipeline in the State of Chihuahua, Mexico. The non-jurisdictional pipeline terminates at a natural gas processing facility in Puerto Libertad, State of Sonora, Mexico. On August 25, 2023, Commission staff issued an environmental assessment (EA) for the Project, concluding that approval of the proposed project, with appropriate mitigating measures, would not constitute a major federal action significantly affecting the quality of the human environment. On November 8, 2023, the U.S. Department of State, Office of Global Change (State Department) submitted a request for a greenhouse gas (GHG) emissions analysis for the Saguaro Connector Pipeline Project that covers lifecycle upstream and downstream GHG emissions. On November 13, 2023, the Commission issued a data request to Saguaro that stated while the State Department's request is beyond the scope of the Commission's analysis in this proceeding, the Commission may only issue a presidential permit after obtaining the favorable recommendations of the Secretary of state and the Secretary of Defense. Accordingly, the Commission directed Saguaro to coordinate with the State Department to address their information needs to complete their review. On November 20 and 22, 2023, Saguaro responded to such data request and provided updated agency correspondence, respectively. On November 28, 2023, the State Department submitted comments in support of the Application. Agenda item C-3 may be an order on the Application.
Kiara Williams (White & Case, Law Clerk, Washington, DC) contributed to the development of this publication.
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