permit is issued. They contend that all such reports should be filed
with the application or the application may be deemed incomplete until
such filings are made. The Commission does not believe it is necessary
that the applicant have all the cultural resources reports and plans
completed before it issues a permit. Under some circumstance where
access to private property is denied, the applicant will not have
access to the property to complete the report until after the permit is
issued and the applicant gains access by eminent domain. The Commission
will not authorize construction, however, until permittee has complied
with all the requirements of NHPA and all other relevant environmental
laws.
    149. National Grid contends that the Commission should grant
requests for waiver of Resource Report 4 if overhead electric lines are
on existing rights-of-way. Regardless of the location of the
facilities, the Commission will still need to comply with NHPA section
106.
viii. Resource Report 5--Socioeconomics
    150. Section 360.16(g) requires that the applicant provide
information concerning the impact of the proposed

project on the towns and counties in the vicinity of the project.
Section 360.16(g)(2) requires that the applicant evaluate the impact of
any substantial immigration of people on governmental facilities and
services, and plans to reduce the impact on local infrastructure.
    151. EEI states that electric transmission line construction
typically does not involve a large influx of workers into an area, so a
requirement for an evaluation of the impact of the immigration of
people and a fiscal impact analysis evaluating incremental local
government expenditures is unnecessary. The construction of any major
energy infrastructure facility has the potential to require some influx
of workers into the areas. Depending on the facilities available,
number of employees, and duration of their stay they may have a major
impact on communities. This may especially be the case with the
expedited construction we expect for permitted projects.
    152. Under Sec.  360.16(g)(7), the applicant is required to conduct
a property value impact analysis of the proposed transmission line for
residential properties located adjacent to or abutting the right-of-
way. Numerous commenters recommended expansion or deletion of the
proposed property value impact analysis.
    153. EEI requests that the Commission delete the requirement for a
property value impact analysis for residential properties located
adjacent or abutting to the proposed right-of-way. National Grid
asserts that requiring property value impact for these facilities is
unwarranted and it would serve only to promote and fuel not-in-my-
backyard sentiment. It also contends that assessing property values for
virgin right-of-ways would be very time consuming with no tangible
benefits.
    154. Virginia Electric states that there is no consensus to support
a conclusion that transmission lines have any impact on real property
values and that the type of property value impact studies in this
regulation would overstate, by double-counting, the normal right-of-way
cost for the project. SoCal Edison believes such a requirement would be
highly subjective and could significantly delay approval of a
transmission facility. EEI is concerned that a property value impact
study would be highly subjective and could further complicate
negotiations and communication between the transmission project sponsor
and homeowners in the vicinity of the project. AEP states that the
Commission should reconsider requiring this information because it will
be time-consuming and the conclusions would be highly speculative.
    155. EEI and SoCal Edison assert that there is no similar
requirement in the Commission's regulation regarding the siting of
other energy infrastructure. SoCal Edison states that such an analysis
is not required by NEPA. EEI, National Grid, and SoCal Edison also note
that this type of information is not generally required at the state
level.
    156. Communities request that the analysis include all landowners,
residential and commercial, within the entire area of impact and should
require a fiscal impact analysis on both local and regional economies.
Wilderness recommends that the Commission's analysis use the methods
described in ``Socio-Economic Framework for Public Land Management
Planning: Indicators for the West's Economy''. In addition, it requests
that the assessment consider the potential impacts on the values of
public lands.
    157. After considering the comments raised in this proceeding, the
Commission agrees that the property value impact analysis should be
eliminated from the Final Rule. The Commission believes that requiring
such information could significantly delay the development of
transmission projects, which is contrary to the national interest. The
Commission also is concerned with the accuracy of such studies and the
fact that no uniform methodology is available to calculate the impact
of transmission lines on property values. In many cases, such studies
could be highly speculative and inaccurate while providing limited
beneficial information to the public. Finally, the Commission agrees
that there is no particular rationale why such a study should be
required when it is not required for other infrastructure projects
before the Commission or generally required at the State level.
    158. Given the speculative nature of these reports and the time and
resources the application would need to dedicate towards completion of
this study, the Commission does not believe such a requirement is
consistent with the purpose of EPAct 2005. The Commission will consider
such information when provided in making a determination on the
project, but such information will not be required.
ix. Resource Report 6--Geological Resources
    159. Section 350.16(h) requires that the applicant describe
geological resources and hazards in the project area that might be
directly or indirectly affected by the proposed action or that could
place the proposed facilities at risk, the potential effects of those
hazards on the facilities, and methods proposed to reduce the effects
or risks. National Grid states that this requirement should be
eliminated for overhead electric transmission line projects and
required only for underground projects, where the nature of the
facility makes such analysis relevant and appropriate.\33\ Construction
of electric transmission facilities will require the placement of
towers subject to substantial loads in areas with potential geological
hazards that the Commission would want to take into account in its
analysis. Therefore, we will not eliminate this requirement.
---------------------------------------------------------------------------

    \33\ DOI requests that Resource Report 6 address impacts to
local aquifers or water sources which may supply water to local
communities. These impacts are specifically addressed in Resource
Report--2--Water use and quality.
---------------------------------------------------------------------------

x. Resource Report 7--Soils
    160. Section 360.16(i) requires that the applicant provide
information on the soils that will be affected by the proposed project,
the effect on those soils, and measures to minimize or avoid impact.
EEI, AEP, and National Grid contend that the Commission should
eliminate this requirement because electric transmission projects will
have no significant impacts on soil. We disagree. Whenever there is
ground disturbance and the possibility of erosion, the Commission needs
to determine the potential impact of that activity.
    161. DOI recommends that this report include a requirement to
identify highly erodible soils. Section 360.16(i)(1) requires that the
applicant list the soil associations that would be crossed and
describe, among other things, the erosion potential. We think this
adequately addresses DOI's concern.
xi. Resource Report 8--Land Use, Recreation, and Aesthetics
    162. Section 360.16(j) requires that the applicant describe the
existing uses of land within a quarter mile of the edge of the proposed
right-of-way and changes to the land use if the project is approved. It
also requires that the applicant list all buildings within a half-mile
of the center of the proposed right-of-way. Communities state that the
Commission should clarify in the regulation that not only must existing
land use be evaluated but also all permitted land use. Under Sec.
360.16(j)(3), the applicant is required to provide information on
``planned development'' in the project area, which is defined as
development included in a master plan or on file with local planning
authorities and would included permitted land use.

    163. DOI requests that this report include identification of the
loss of agricultural/grazing property within the project area. Section
360.16(j) requires that the applicant address changes to those land
uses that will occur if the project is approved.
    164. EEI states that the requirement that the applicant submit
information regarding a corridor that is one-half mile wide is
unnecessarily broad, and could pose an undue burden on the applicant,
and would exceed the study corridor width used in many States. It
contends that the appropriate corridor width will vary from State to
State depending on topography, the nature of development in the
vicinity, and other factors. Therefore, it requests that the Final Rule
be modified to permit the applicant to propose a corridor width that
takes these factors into account. In the alternative, EEI states that
the Final Rule should be modified to require information be provided
for a corridor that is 200 feet wide, an approach that it states is
consistent with current practice in certain States. Southern raises
similar concerns. AEP states that the Commission's land use requirement
of a quarter mile would be excessively costly. DOI also requests that
the Commission explain the justification for the quarter-mile distance
requirement.
    165. The Commission believes that it is reasonable to require
preliminary information on land uses and inhabited buildings within a
half-mile corridor along a proposed transmission line. Having
information about such areas from the outset will enable the Commission
to more efficiently examine minor routing alternatives or
modifications. In some instances, based on a review of the preliminary
materials and information gained during the scoping process, the
Commission may request additional information.
    166. Section 350.16(j)(4) requires that the applicant identify
various areas including, among others, sugar maple stands, orchards and
nurseries, game management areas, national or State forest, parks, golf
courses, or recreational or scenic areas. Massachusetts Energy Board
requests that the Commission add cranberry bogs after orchards and
nurseries. The Commission will consider additional areas that need to
be identified on a case-by-case basis depending on the proposed
project.
    167. Wilderness requests that the Commission lands managed by the
Bureau of Land Management, the National Park Service, and the U.S.
Forest Service be specifically listed as requiring information in
Resource Report 8. It contends that the regulations should emphasize
the protection of the special values of public lands. Section
360.16(j)(4) requires that the applicant identify all lands owned and
controlled by Federal or State agencies, as well as land owned by
private preservation groups in addition to parks and recreation areas.
We believe this sufficiently covers the areas of concern raised by
Wilderness in its comment. If Wilderness believes that something was
overlooked when an applicant makes a specific filing, it can file
comments during the Commission's scoping period.
    168. EEI states that the Commission's requirement that the
applicant identify Indian Tribes that may attach significance to the
project's right-of-way is broad and vague and should be removed. It
contends that there are transmission lines that are hundreds of miles
long and that it would be difficult to determine the ``project
vicinity''. EEI asserts that the cultural resources consultations with
Native Americans required in Sec.  380.16(f) and the requirement that
the applicant identify Native American religious sites and cultural
properties in Sec.  380.16(j)(4) should be sufficient to assure that
appropriate consideration is given to the impacts on tribal resources
of a proposed transmission facility.
    169. Affiliated states that the applicant should provide names of
all Indian tribes who may have permit authority or the ability to
consent to, or withhold consent over, any aspect of the project.
Affiliated also asserts that the rule should describe the different
interests tribes have in projects, either as permitting and consenting
entities inside the external boundaries of reservations, or outside of
reservations on tribal traditional lands or cultural places. It should
also explicitly cite, describe, and inform other stakeholders of the
Commission's tribal obligations, identify treaty rights, and any other
tribal interests that may be impacted by the proposed project.
Confederated Tribes of the Warm Springs Reservation of Oregon
(Confederated Tribes) requests that the Commission require an applicant
to identify treaty rights and any other tribal interests that may be
impacted by the proposed project in Sec.  380.16(j)(5).
    170. As discussed above, the Commission believes that the filing
requirements concerning tribal interests under Sec.  360.16(f) and
Sec.  360.16(j) and the notification requirements under Sec.  50.4(c)
are sufficient to provide the basic information for the Commission to
commence its review of a proposed project.
    171. Pre-filing is an information gathering process. During this
process, Commission staff will work with the applicant to make sure
that all interested stakeholders, including any tribes, have been made
aware of the proposed project and have had an opportunity for their
views and recommendations to be considered. Any issues particular to a
proposed project will be raised and evaluated during the pre-filing
process. Information developed during the pre-filing process will be
made part of the record and will be considered by the Commission as it
conducts its review when an application is subsequently filed.
    172. Southern contends that the requirement in Sec.  350.16(j)(6)
to list all schools, homes, and other structures within one-half mile
of a proposed facility and AM radio transmitters within 10,000 feet
imposes an enormous burden with no discernible benefit. We disagree. It
is more efficient for Commission staff to consider the land use and
aesthetic issues within a wider area than to prematurely narrow the
focus of the evaluation and scoping process. Any lesser requirement
might require the applicant to do a more expansive review later in the
process in response to stakeholder comments which could potentially
extend the processing time for the proposed project.
    173. Section 380.16(j)(11) requires that the applicant describe the
visual characteristics of the lands and waters affected by the project.
EEI states that significant visual impacts are inherent in virtually
all transmission line construction and cannot be avoided or minimized
in most cases. Therefore, it argues that the Commission's requirement
that the applicant describe how the facilities will impact the visual
character of the project right-of-way and list measures to lessen these
impacts should be modified to clarify that an applicant must only
propose measures to lessen such impacts ``to the extent practicable.''
The Commission understands that it is difficult to lessen the impact of
an electric transmission facility and will consider visual impacts on a
case-by-case basis, but nevertheless needs visual impact information to
complete its NEPA and public interest analysis.
    174. National Grid states that the Commission should change this
report to require the applicant to identify and give a general
description of the surrounding areas and describe the effect of the
proposed project on those areas. A general description of the
surrounding areas is not sufficient for the Commission's land use
review. As

stated, it is more efficient for the Commission to consider land use
issues within a wider area.
xii. Resource Report 9--Alternatives
    175. Section 380.16(k) requires that the applicant describe
alternatives to the project and compare the environmental impacts of
the alternatives. Center for Biological Diversity wants to ensure the
full environmental impacts of the alternatives are considered. National
Grid states that the Commission should clarify that the applicant is
only required to prepare resource reports for proposed projects, not
alternatives. American Transmission requests that the Commission
specify what is meant by all alternatives, including the identity of
the number of alternative routes that must be considered. AEP states
that Resource Report 9 would require excessive research, including
costly environmental analyses, to be completed on an undefined and
seemingly limitless number of alternative routes. Southern states that
it is not clear how much information an applicant needs to collect to
review and report on alternatives and that it could lead to an enormous
burden.
    176. For the preliminary reports required at the early stages of
pre-filing, the applicant need only submit information that would allow
Commission staff to discern reasonable alternatives. As the Commission
conducts its site visits and reviews the comments submitted during the
scoping period, alternatives will be considered. Once the applicant
reaches a decision regarding its final proposed route, it will need to
comply with the resource report requirements for that route before the
application is filed.
    177. Wilderness states that alternatives should be identified to
avoid the locations identified in Resource Report 8 or to explain why
they could not be avoided altogether. It also requests that a
transparent comparison of costs and environmental impacts should be
included in this section. The purpose of the Commission's NEPA analysis
is to analyze the potential environmental impacts of a proposed project
and reasonable alternatives to that project. Section 380.16(k) requires
that applicants describe and evaluate alternatives including a
discussion of costs and benefits. While the avoidance of impacts to
special land use areas is not specifically addressed in the resource
report, it will be explored through the course of the NEPA review.
    178. APPA states that non-wires alternatives should be thoroughly
evaluated ``up front'' during the interregional planning process and
should not be among the alternatives evaluated by the Commission in the
construction permit application process. Massachusetts Energy Board,
New Jersey BPU, and Pennsylvania PUC all request that the Commission
consider alternatives beyond new transmission lines, including
configuration and design alternatives, upgrades to existing
transmission facilities, and demand side alternatives. Reinhardts
suggest the Commission consider ``system alternatives'' to a proposed
project as opposed to just route alternatives. California PUC contends
that the Commission should consider alternatives inside and outside the
National Corridors and use all the information on alternatives
developed in the State siting process. Communities requests that the
Commission require the applicant to evaluate all technologically
achievable alternatives.
    179. NEPA requires the Commission to consider and discuss
reasonable alternatives; it does not require consideration of patently
unsuitable alternatives.\34\ The Commission's experience in the
hydropower and gas pipeline programs is that the range of reasonable
alternatives can best be determined based upon the facts of a specific
siting proposal. In light of the specific facts raised by individual
projects, the applicant will be required to address a variety of
alternatives in the resource reports, including, where appropriate,
alternatives other than new transmission lines. Moreover, reasonable
alternatives can be identified by Commission staff or other
stakeholders at various points during the proceeding for consideration
in the NEPA process.
---------------------------------------------------------------------------

    \34\ See American Rivers v. FERC, 201 F.3d 1186, 1200 (9th Cir.
2000).
---------------------------------------------------------------------------

xiii. Resource Report 10--Reliability and Safety
    180. Section 380.16(l) requires that the applicant address
potential hazards to the public and how these will affect reliability.
Communities request that the report include an evaluation of homeland
security issues and whether the project will result in energy
independence. Homeland security related issues will be addressed on a
case-by-case basis.
    181. Southern states that the Commission should not require an
applicant to include a discussion on potential acoustic or electric
noise from electric and magnetic fields (EMF). National Grid contends
that since these requirements are duplicative of local requirements,
the Commission should waive the requirements where the applicant can
demonstrate that comparable requirements are being complied with at a
local level. As discussed above, an applicant may use any information
developed during its planning stage and for the State proceeding to
satisfy the Commission's filing requirements. However, it must clearly
explain and demonstrate how that information complies with the
Commission's specific requirements.
xiv. Resource Report 11--Design and Engineering
    182. EEI states that the requirement that the applicant submit
detailed design and engineering drawings showing all major project
structures is inconsistent with typical industry and State permitting
practice which is to only submit pole spotting or spacing information
and general consideration of structure type when siting authorization
is sought. It states that detailed engineering is then completed after
a proposed transmission project is authorized. EEI contends that
electric transmission lines are subject to specific field designs along
their entire length to accommodate particular circumstances. Therefore,
it states it would be more appropriate for the Commission to require
the submission of detailed engineering information after a permit is
issued rather than beforehand. National Grid states that this
requirement should be modified to require only maps of the proposed
siting route and drawings depicting the predominate type of structures
to be used.
    183. The Commission expects the applicant to be able to commence
construction when the Commission issues the permit. The applicant can
develop its design during the pre-filing phase, but the Commission
expects that all design plans should be well-defined when it files its
application.
    184. Massachusetts Energy Board requests that the Commission
require applicants to provide an explanation for any selection of a
structure design that is different from structures already present and
an explanation of any structure placement that is longitudinally offset
from existing structures. Resource Report 1 requires that the applicant
describe the facilities associated with the proposed construction. If
the Massachusetts Energy Board believes additional information is
required for a specific project, it should file comments during the
NEPA scoping process and those comments will be addressed in that
proceeding.

c. Exhibit G--Engineering Data
    185. The Commission requires specific engineering data to support
its review of a proposed transmission line in Exhibit G. National
Manufacture's contend that flexibility should be allowed in the permit
application facilities description because the design will probably not
be finalized at the time of permit application. It also notes that
filings have historically been made 5 to 10 years before the final
design is completed. The Commission expects that the applicant will be
prepared to commence construction when the permit is issued. Thus, it
will need to have all its final designs completed prior to when the
Commission issues an order on the merit of a proposed project.
    186. Massachusetts Energy Board states that the Commission should
require applicants to provide: (1) Existing and expected EMF cross-
sectional profiles for points along a proposed project and identify any
low-cost mitigation of EMF; (2) information on interference with
existing cathodic protection systems; (3) an analysis of noise levels:
(4) engineering data on substations and switching station that would be
constructed or altered in connection with the transmission line
project; and (5) any other information that has been identified as a
requirement component of siting review or of an application to
construct in the State in which the facility will be located. DOI also
requests the Commission review the potential environmental impact of
noise.
    187. The information Massachusetts Energy Board and DOI recommend
the Commission should require applicants to provide is already required
by Resource Report 10. Should other pertinent information be identified
during the State siting process, this information may be filed for
consideration by the Commission.
d. Exhibit H--System Analysis Data
    188. Exhibit H requires information to evaluate the impact the
proposed facilities will have on the existing electric transmission
system performance, including an analysis of existing and expected
congestion, power flow cases which include contingency data files, a
list of assumptions and guidelines used in the cases, a stability
analysis, a short circuit analysis and a concise analysis that explains
how system reliability will be improved, how long-term regional
planning is impacted and how congestion will be impacted on the
applicant's entire system.
    189. Communities state that system analyses should include all
relevant reliability assessments completed by State commissions, ISO,
RTO, energy service companies and the like. New Jersey BPU states that
the Commission analysis should include input from a RTO/ISO (if
applicable) because they are in the best position to analyze the impact
new facilities will have on overall system performance. In determining
whether to issue a permit to construct the proposed facilities, the
Commission will review all processes that were conducted by the
applicant with the relevant stakeholders in determining whether to
approve the proposed facilities, including input from RTOs and ISOs.
    190. Reinhardts contend that the Commission must consider how
interstate transmission will impact electricity available to individual
States and regions. They state that the Commission's rules must include
data requirements that would shed light on potential reliability
issues. They also assert that the rules should: (1) Require full
disclosure of all electric generation (new or existing) for which the
new transmission facilities have been proposed; (2) require that
alternatives to the proposed transmission include alternative electric
generation scenarios; and (3) require a detailed analysis of all
impacts that would be imposed by construction of the desired interstate
transmission resources that are expected to feed into the new
transmission facilities to meet identifiable power needs. APPA and PJM
suggest more details concerning the reliability criteria the Commission
will use to approve projects. PSEG Companies and APPA contend that
there is a need for a broad congestion analysis.
    191. The Commission anticipates that DOE will designate corridors
to help connect existing generation to load. In most cases, the
proposed project will be limited to transmission facilities designed to
achieve this purpose. The Commission's decision on the proposed project
will take into account the applicant's submitted reliability and
systems analysis, an analysis of alternatives, and an analysis of
project impacts as required by NEPA. Additionally, based on the
specific issues that arise in individual projects, the Commission may
request additional information to assure that the proposed project is
in compliance with any Commission-approved reliability standard.
e. Exhibit I--Project Cost and Financing
    192. Exhibit I requires general information concerning the cost of
the proposed project. Communities state that the applicant should
provide a detailed analysis of the projected cost impact on customers
both inside and outside the National Corridors. California PUC states
that the description of project financing should identify the specific
mechanisms by which the applicant will seek cost recovery, what
categories of ratepayer costs would be recovered from, and what rate or
other incentives the applicant proposes to seek. It contends that this
will provide adequate transparency regarding the financial impact of
the project on the State or region.
    193. Cost recovery and the effect on customer rates are not part of
the proceeding to issue a construction permit. The Commission will
address issues related to the costs associated with the proposed
facilities in separate rate proceedings filed under FPA section
205.\35\ Any concerns about cost recovery should be raised in those
proceedings.
---------------------------------------------------------------------------

    \35\ See, e.g., Allegheny Energy, Inc., 116 FERC ] 61,058
(2006), American Electric Power Service Corp., 116 FERC ] 61,059
(2006). See also Promoting Transmission Investment through Pricing
Reform, 71 FR 43294 (July 31, 2006); FERC Stats. & Regs. ] 31,222
(2006).
---------------------------------------------------------------------------

G. Critical Energy Infrastructure Information

    194. Information filed during the pre-filing and application
proceedings will likely contain critical energy infrastructure
information (CEII). Under Sec.  50.4(c)(5), access to this information
is subject to the CEII requirement in Sec.  388.113 of the Commission's
regulations.
    195. Western Energy Board,\36\ NARUC, and CA Resources contend that
the Commission should recognize that State agencies with permitting or
other regulatory authority with respect to a project are
distinguishable from individuals or businesses seeking CEII information
for their own private interests. They state that such agencies are
invested by statute with safeguarding the public interest and as such,
have a need to know with respect to CEII, and should not be required to
demonstrate a need for the CEII when requesting this material. In their
filings, they make various recommendations for changes to the
Commission's CEII regulations.
---------------------------------------------------------------------------

    \36\ Washington Council adopts the comments of the Western
Energy Board.
---------------------------------------------------------------------------

    196. On September 21, 2006, in Docket No. RM06-23-000, the
Commission issued a notice of proposed rulemaking regarding its
regulations for access to CEII.\37\ Copies of the comments

submitted by Western Energy Board, NARUC, Washington Council, and CA
Resources have been placed in the official record in Docket No. RM06-
23-000, and will be addressed in that proceeding.
---------------------------------------------------------------------------

    \37\ Critical Energy Infrastructure Information, 71 FR 58321
(Oct. 3, 2006); FERC Stats. & Regs. ] 32,607 (2006).
---------------------------------------------------------------------------

    197. DOI requests the Commission include a definition of CEII along
with an identified procedure for obtaining CEII. The Commission finds
that the reference in Sec.  50.4(c)(5) to the CEII regulations Sec.
388.113 is sufficient to direct the reader to the Commission's
procedures concerning CEII.

H. Accepting/Rejecting Applications

    198. Under Sec.  50.8(b), the Director of OEP may reject an
application that does not comply with any applicable statute, rule, or
order as provided for under Sec.  385.2001(b) of the Commission's
regulations. Allegheny requests that the Commission impose a 10-day
deadline for the rejection of applications as required under Sec.
157.8(a) of the Commission's natural gas regulations. The Director of
OEP will either notice the application or reject it, in a timely
manner. Assigning an arbitrary deadline for these actions is not in the
interest of an applicant who is earnestly trying to perfect an
application.

I. Hearings

    199. Section 50.3(e) states that the Commission will conduct a
paper hearing on applications for permits for electric transmission
facilities. NARUC contends that the regulations do not provide for
notice and an opportunity for a hearing as required under FPA section
216(b). They argue that the major portion of the Commission's
examination of the application and the participation of the States
occurs in the pre-filing process and that the applicant, not the
Commission, is tasked with deciding what kind of participation process
will provide interested persons an opportunity to be heard. They state
that because the majority of the evaluative work performed with respect
to the application will occur before the hearing process ever begins,
the Commission will deprive interested persons of the ability to
participate in a fair and open process. NARUC also states that during
the pre-filing process the applicant can make its case to the
Commission before interested persons can intervene, test the
information provided by the applicant, and provide their own analysis
without being subject to the Commission's ex parte restrictions.
    200. Pre-filing is an information-gathering process. The Commission
will assign a docket number at the beginning of the process. All
filings made in that docket from both the applicant and stakeholders
will be available for anyone to comment on. During this process,
Commission staff will work with the applicant to make sure that all
interested stakeholders have been made aware of the proposed project
and have had an opportunity for their views and recommendations to be
considered. The Commission staff also will start its environmental
scoping and review process. During this process, Commission staff will
conduct public meetings and/or technical conferences and work with the
applicant and all stakeholders to formulate the issues raised by a
particular project and to compile the information that will be needed
by the Commission to address those issues when it conducts the
substantive review of the proposed project during the application
process. During pre-filing, Commission staff will be available to
provide guidance on the process to both the applicant and any
interested stakeholder.
    201. Once the Commission staff determines that there is sufficient
information for the Commission to evaluate the proposed project, the
applicant will file its application. At that point, the hearing
envisioned under FPA section 216(b) will commence. The application will
be subject to the Commission's notice, intervention, and protest
requirements. Based on the information in the application and the
information compiled during the application proceeding, the Commission
will evaluate the proposed project and issue an order on the merits.
Thus, any interested stakeholder will have numerous opportunities to
participate not only informally during the pre-filing process, but also
formally during the application process.
    202. Southern contends that a paper hearing should not preclude an
evidentiary hearing in the event that circumstances dictate one. Iowa
Board similarly argues that paper hearings should not foreclose the
possibility of a live hearing if it is more appropriate. New Jersey BPU
states that the Commission should determine the nature of the hearing
depending on the circumstances, including whether material issues of
fact are in dispute that cannot be adequately resolved on the written
record. Pennsylvania PUC urges the Commission to adopt provisions that
provide for a hearing that affords entities an opportunity to present
their case in full using all due process protections afforded by a
contested on-the-record proceeding. SoCal Edison states that when
material disputes are raised, the Commission should have a full hearing
before an ALJ with the appropriate protections. Western Governors raise
similar concerns.
    203. The Commission believes that in most instances, the Commission
will make its ultimate determination on the basis of the paper record
compiled in the proceeding. The Commission may order a trial-type
hearing, however, either on its own motion or the motion of any
interested party of record in accordance with subpart E of Part 385 of
the regulations if the Commission deems it appropriate.

J. Permit Conditions

    204. Section 50.11(b) requires that the permittee accept the permit
in writing within 30 days from the date of the order issuing the
permit. EEI contends that the deadline should be extended to allow the
permittee to seek rehearing. It states that this is necessary because
certain aspects of the permit order may render the proposed project
uneconomic or otherwise infeasible. Therefore, it states that the
applicant's rehearing request must be addressed before it can determine
whether or not to accept the permit. Allegheny makes similar arguments.
The Commission agrees that an applicant should be able to appeal the
Commission's decision before it is required to accept its permit and
has modified Sec.  50.11(b) accordingly.
    205. Los Angeles Department of Water and Power (Los Angeles DWP)
contends that acceptance of a permit would require approval of its
Board of Commissioners and that the approval may take more than 30
days. Los Angeles DWP proposes that the 30 day period be extended in
response to a reasonable request by the applicant. The Commission may
waive a rule for good cause shown. If a permittee needs an extension of
time to accept its permit it may request a waiver of Sec.  50.11(b).
    206. Section 50.11(c) requires, among other things, that the
facilities be constructed in a matter to prevent interference with
service furnished by other public utilities. Imperial states that the
construction, installation, operation, and maintenance of new
transmission facilities should be conducted in a manner that prevents
interference with service not only furnished by public utilities, but
also services furnished by non-public utilities. We will add non-public
utilities to Sec.  50.11(c).
    207. Section 50.11(d) requires written authorization from the
Director of OEP prior to commencing construction or initiating
operations of the approved facilities. American Transmission states
that the Commission's issuance of a permit should be sufficiently final
so that applicants can begin the

construction process, including making financial commitments. It
contends that any further delay would be unnecessary. The Commission
generally imposes a substantial number of conditions in its orders
authorizing project construction, such as requests that the permittee
receive all final comments from various resource agencies before
commencing construction. Additionally, the permittee may not be able to
conduct all of the required surveys until it is able to condemn the
property with the eminent domain authority received with the issuance
of the Commission's permit. Thus, the Commission requires that the
permittee complete all conditions precedent before it will authorize
the construction of the facilities.
    208. Virginia Electric states that written authorization obtained
from the Director of OEP should permit both commencing construction of
the facilities and initiating operations. A single permit will allow
for the timely construction and operations of new transmission
facilities. Generally, the Commission will not authorize the
commencement of service on the new facilities until it determines that
the rehabilitation and restoration of the right-of-way and other areas
affected by the project are proceeding satisfactorily. Accordingly, the
permittee needs authorization from the Director of OEP to make the
facilities available for service.
    209. Communities contend that in instances of delayed construction,
there should be a provision for reopening the order granting the permit
to allow for public scrutiny of the change of circumstances to ensure
that the delay is in the public interest. Section 50.11(e) requires
that the facilities be completed within the timeframe specified in the
Commission order. If the facilities are constructed as required by the
Commission, there will be no reason to revisit the Commission's
decision. Section 50.11(e) also states that if the permittee does not
complete the facilities within the specified timeframe it must file a
request for an extension of time.
    210. Under Sec.  50.11(g) a permitee must notify affected
landowners that have executed easement agreements to convey property
rights for the proposed facilities if the permit is transferred. EEI
states that the requirement that the permit holder notify all affected
landowners if a permit is transferred could be unduly burdensome in
many instances when the permittee no longer knows the identity of
landowners along the right-of-way because the transmission line was
authorized and landowners consulted many years previously. The
Commission is issuing a permit to construct the facilities. If a permit
is transferred at any time before the facilities are constructed, the
new permittee will be required to contact all landowners subject to
easement agreements that a different company will be constructing the
facilities and who they will need to contact while the facilities are
being constructed.
    211. Affiliated states that compliance with applicable tribal law
should be included as condition to a permit. Section 50.11 details
general conditions that will apply to all permits issued by the
Commission. The Commission also will impose other conditions to address
specific issues that will arise in a proceeding on a case-by-case
basis.
    212. American Transmission states that the Commission should
include reporting requirements which could capture any changes since a
permit is issued. National Grid states that there should be no ongoing
reporting requirements regarding operations and maintenance. The
Commission's jurisdiction under FPA section 216 is to issue permits to
construct electric transmission facilities. Once the facilities are
constructed and operational and all the Commission's right-of-way
restoration conditions have been met, the Commission's jurisdiction
over the facilities under FPA section 216 ends. Thus, there will be no
changes to the permits or any ongoing reporting and maintenance
requirements.

K. State and Local Permits

    213. Under Sec. Sec.  50.5(c)(2) and (3) the applicant is required
to include a description of the zoning requirements for the facilities
and a list of local entities with local authorization requirements,
respectively. EEI states that the requirements that the applicant
describe the zoning and site availability for any permanent facilities
and to account for each of the local permitting requirements could
potentially be misconstrued by localities to imply that a transmission
project sponsor must obtain local permits. It contends that this is
counter to the plain language of FPA section 216 that preempts State
and local law, including zoning requirements. It requests that the
Commission clarify that the Final Rule preempts State and local
permitting requirements. American Transmission requests that the
Commission clarify the need for zoning requirement information.
    214. While the Commission may, where appropriate, require
applicants comply with State and local permitting, we note, any State
or local permits issued with respect to jurisdictional facilities must
be consistent with the conditions of the Commission's permit. The
Commission encourages cooperation between the applicants and local
authorities. However, this does not mean that State and local agencies,
through application of State or local laws, may prohibit or
unreasonably delay the construction of facilities approved by the
Commission.\38\
---------------------------------------------------------------------------

    \38\ See, e.g., Schneidewind v. ANR Pipeline Co., 485 U.S. 293
(1988); National Fuel Gas Supply v. Public Service Comm'n, 894 F.2d
571 (2d Cir. 1990).
---------------------------------------------------------------------------

    215. Communities state that while the Commission may assert
jurisdiction over the siting of transmission facilities, it cannot
ignore the role the States must still play in the siting process. They
argue that the Commission is attempting to limit State authority to
only State agencies that provide authorization under Federal law. They
contend that this is inconsistent with the requirements of FPA section
216(h)(3) which requires that the NEPA review process be coordinated
with State agencies conducting separate permitting and environmental
reviews.
    216. FPA section 216(h), which is entitled ``Coordination of
Federal Authorizations for Transmission Facilities'', directs the
Commission, under its delegated authority, to ``coordinate the Federal
authorization and review process under this subsection with * * * State
agencies''. Section 216(h)(3) specifically involves only Federal
authorizations. Under FPA section 216(h)(4), however, the Commission
can coordinate with ``State agencies that are willing to coordinate
their own separate permitting and environmental reviews with the
Federal authorizations and environmental reviews.''
    217. As stated, under Sec.  50.5(c)(3), in the initial pre-filing
filing requirements the applicant is required to list all local
entities with local authorization requirements. Section 50.5(c)(3) also
requires that the applicant explain how it intends to account for the
local permits in the environmental review process and when it intends
to file for such permits. Once the pre-filing process commences, under
Sec.  50.5(e)(6), the applicant is required to submit a schedule
detailing when it intends to submit the applications with the local
agency. Further, under Sec.  50.5(e)(8), the applicant is required to
submit status reports updating its progress in obtaining those permits.
    218. Commission staff will work with the applicant and the local
agencies throughout the pre-filing and

application process to get the information required for all applicable
Federal and State permit processes needed to site the proposed
facilities. However, as discussed above, a State or local agency cannot
prevent the construction of the facility through its permitting
process, which is preempted by Federal law in instances where our
jurisdiction is triggered under FPA section 216. For example, it would
be inconsistent with the text, purpose and intent of FPA section 216 to
allow a State permitting agency to halt the construction of a facility
that has been permitted by the Commission for the very reason that the
State agency withheld approval of the project for more than one year.
To hold otherwise would essentially render FPA section 216 a nullity.

L. Subsequent Modifications to Facilities

    219. Several commenters request clarification on how a permittee
may make minor improvements to the facilities authorized by the
Commission after they are constructed. EEI requests that the permit
include provisions that allow a permittee to make minor improvements
after facilities are constructed. Allegheny states that the Commission
should clarify the process for making modifications to existing
facilities to specify that an applicant is not required to first seek
State approval. Allegheny further requests that when such a
modification is proposed, the Commission's review be limited to the
proposed modifications, whether the existing facility was sited by the
Commission or State siting authority. National Grid contends that a
transmission siting permit is valid in perpetuity. It argues that
otherwise, an applicant would have no incentive for investment. It also
requests that the Commission develop criteria to determine whether
project modification requires notice to the Commission or a revision to
the permit.
    220. As stated, once the facilities are constructed, the
Commission's jurisdiction under FPA section 216 ends. All modifications
to existing transmission facilities will be subject to the provisions
of FPA section 216 at the time the facilities are proposed.
Specifically, the facilities will have to be located in a then-
designated National Corridor and will have to qualify for the
Commission's jurisdiction under FPA section 216(b)(1).

M. Definitions

    221. Section 50.1 lists the terms the Commission determined needed
to be specifically defined in the regulations. Allegheny requests that
the Commission define the terms ``project'' and ``transmission
facility'' to clarify that they only pertain to the portions of
transmission facilities that a transmission owner is unable to
successfully site through a State process. Southern contends that the
Commission should consider defining ``project'' to embody the
triggering requirements in FPA section 216(b). The only projects that
the Commission will be issuing permits to are those that will fall
under FPA section 216(b). Thus, no further explanation of those terms
is necessary.
    222. National Grid requests that the Commission define ``Electric
transmission facilities'' to include those facilities, including
various listed equipment and materials, used for the transmission of
electric energy in interstate commerce for the sale of electric energy
at wholesale. Transmission facilities that will be subject to a
Commission permit will include all the facilities necessary to provide
service on the facilities approved by the Commission. Further
definition of facilities in the regulations is unnecessary.
    223. Section 50.1 defines transmitting utility as an entity that
owns, operates, or controls facilities used for the transmission of
electric energy in interstate commerce for the sale of electric energy
at wholesale. Massachusetts Energy Board states that the Commission
should consider defining the terms ``transmission'' and ``wholesale''
in the definition of transmitting utility or reference the existing CFR
definitions. Section 50.1 defines a transmitting utility consistent
with the definition in FPA section 3(23). The Commission does not
believe any further definition is necessary.
    224. Southern requests that the Commission define the term
``applicant'' and clarify that the permitting process will only be
available to transmission utilities, unless exceptional circumstances
are shown. The Commission does not believe that it was Congress' intent
in enacting EPAct 2005 to limit the construction of electric
transmission facilities in national interest transmission corridors to
any specific entity. The Commission will accept any viable project
proposed by any prospective transmission company.

N. Eminent Domain Issues

    225. Under Sec.  50.4(c)(2)(i)(E), the applicant must include a
brief summary of what rights the affected landowner has at the
Commission and in proceedings under the eminent domain rules of the
relevant State. Reinhardts request that the pre-filing notifications
include a statement that the applicant will have the ability to use the
power of eminent domain to get the land for the facility and the basis
for that authority. Southern states that the Commission should not
require an applicant to summarize the State eminent domain rules
because the applicant would be legally liable for the accuracy of this
information.
    226. The Commission believes that the applicant should provide
landowners with some basic information concerning what is involved in
the eminent domain process. The general public is probably not greatly
informed on these matters and may need to invest significant time and
money just to get a basic understanding. We do not believe that
providing this information would put the applicant at risk for
unnecessary litigation, especially if the applicant prefaces its
explanation with a disclaimer statement. It can also refer the
landowner to a State agency or the State Attorney General for further
information concerning the laws of their State, if appropriate.
Additionally, we will require that the applicant explain that it has
the right to acquire the property by eminent domain under FPA section
216(e).
    227. Communities suggest that if State law limits eminent domain
authority, the Federal court likewise is constrained. Southern states
that the Commission should make clear how, and to what extent, the
United States District Courts are to employ State practices and
procedures as part of an eminent domain proceeding commenced in a
Federal forum. Section 216(e)(3) of the FPA states:

    The practice and procedures of any action or proceeding
conducted under this subsection in the district court of the United
States shall conform as nearly as practicable to the practice and
procedures in a similar action or proceeding in the courts of the
State in which the property is located.

    Thus, it is for the court to decide what procedures are appropriate
for their individual proceedings.

O. Filing Fees/Funding

    228. Affiliated states that if Tribes are impacted by any project,
a filing fee should be required by the Commission to fund reasonable
tribal responses and requirements under these regulations. Washington
Council contends that the Commission should require the applicants fund
reasonable State participation in FERC siting proceedings. Parks
Association request that the applicant fund third-party contractors for
the research that other

agencies will need to do for the resource reports. The Commission does
not require that applicants fund any participation in Commission
proceedings and will not do so here.

P. Technical Conferences

    229. APPA, NARUC, and CA Resources request that the Commission hold
a technical conference prior to issuing the Final Rule to discuss
various issues raised in the NOPR. Specifically, APPA requests that the
Commission hold a technical conference to help define diverse State and
Federal processes and the regulator's legal authorities. NARUC contends
that the Commission should hold a technical conference to give the
State commissions an opportunity to address key matters related to the
implementation of this rule. CA Resources Agency requests that the
Commission hold a technical conference or establish an informal
workshop to develop solutions to the issue of the concurrent
jurisdiction and with regard to potential changes to the Commission's
CEII regulations.
    230. The Commission believes that the comments filed in response to
the NOPR are sufficient for the Commission to issue a Final Rule
without further proceedings. By acting promptly, the Commission is
assured that it will have its procedures required under FPA section
216(c) in place when DOE designates National Corridors.

III. Information Collection Statement

    231. The Commission is submitting the following collection of
information contained in this proposed rulemaking to the Office of
Management and Budget (OMB) for review under section 3507(d) of the
Paperwork Reduction Act of 1995.\39\ The Commission will identify the
information provided for under the proposed Part 50 as FERC-729.
---------------------------------------------------------------------------

    \39\ 44 U.S.C. 3507(d).
---------------------------------------------------------------------------

    232. The number of applicants for electric transmission permits in
national interest electric transmission corridors is unknown. Proposed
transmission projects would have to, among other things, significantly
reduce electric transmission congestion in a national interest electric
transmission corridor. These corridors are yet to be defined by the
Secretary. Also, Federal permitting of electric transmission facilities
used in interstate commerce will occur only if, or when, States do not
or cannot act on an application, or have conditioned a project in such
a manner that the proposed construction or modification will not
significantly reduce congestion in interstate commerce or is not
economically feasible. Any estimates of the number of anticipated
electric transmission construction permit applications are extremely
variable, ranging from two to 20 per year.
    233. The Commission solicited comments on the Commission's need for
the information required by the proposed regulations, whether the
information will have practical utility, the accuracy of the provided
burden estimates, ways to enhance the quality and clarity of the
information that the Commission will collect, and any suggested methods
for minimizing the respondent's burden, including the use of
information techniques. The burden estimates for complying with this
proposed rule are as follows:

----------------------------------------------------------------------------------------------------------------
                                                 Number of        Number of        Hours per       Total annual
               Data collection                  respondents       responses         response          hours
----------------------------------------------------------------------------------------------------------------
FERC-729....................................              10                1            9,600           96,000
----------------------------------------------------------------------------------------------------------------

    The Commission did not receive any specific comments concerning its
burden estimates. Where commenters raised concerning specific
information collection requirement would be burdensome to implement,
the Commission has addressed elsewhere in the rule.
    Information Collection Costs: Because of the regional differences
and the various staffing levels that will be involved in preparing the
documentation (legal, technical and support) the Commission is using an
hourly rate of $150 to estimate the costs for filing and other
administrative processes (reviewing instructions, searching data
sources, completing and transmitting the collection of information).
The estimated annual cost is anticipated to be $14.4 million. The
Commission sought comments on these estimates and did not receive any.
Therefore, it will use these estimates in the Final Rule.
    Title: FERC-729 Electric Transmission Facilities.
    Action: Proposed Data Collections.
    OMB Control No.: To be determined.
    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 this rule will not be penalized for failing to
respond to these collections of information unless the collections of
information display a valid OMB control number or the Commission has
provided justification as to why the control number should not be
displayed.
    Respondents: Businesses or other for profit, State, local, or
Tribal government.
    Necessity of the Information: The information collected from
applicants will be used by the Commission to review the suitability of
the proposal for a permit to construct the proposed electric
transmission facilities.
    234. Interested persons may obtain information on the reporting
requirements by contacting the following: Federal Energy Regulatory
Commission, 888 First Street, NE., Washington, DC 20426 [Attention:
Michael Miller, Office of the Executive Director, Phone: (202) 502-
8415, fax:<PHONE_NUMBER>, e-mail<EMAIL_ADDRESS>    235. For submitting comments concerning the collection(s) of
information and the associated burden estimate(s), please send your
comments to the contact listed above and to the Office of Management
and Budget, Office of Information and Regulatory Affairs, Washington,
DC 20503, [Attention: Desk Officer for the Federal Energy Regulatory
Commission, phone:<PHONE_NUMBER>, fax:<PHONE_NUMBER>, e-mail:
<EMAIL_ADDRESS>As the OMB control number has not been assigned

to this information collection, please use the docket number for
reference in your comments.

IV. Environmental Analysis

    236. The Commission is required to prepare an EA or an EIS for any
action that may have a significant adverse effect on the human
environment.\40\ No environmental consideration is raised by the
promulgation of a rule that is procedural in nature or does not
substantially change the effect of legislation or regulations being
amended. The proposed regulations

implement the procedural filing requirements for applications to
construct electric transmission facilities. Accordingly, neither an EIS
nor EA is required.
---------------------------------------------------------------------------

    \40\ Order No. 486, Regulations Implementing the National
Environmental Policy Act, 52 FR 47897 (Dec. 17, 1987), FERC Stats.
Regs. Preambles 1986-1990 ]30,783 (1987).
---------------------------------------------------------------------------

V. Regulatory Flexibility Act

    237. The Regulatory Flexibility Act of 1980 (RFA) \41\ generally
requires a description and analysis of final rules that will have
significant economic impact on a substantial number of small entities.
The Commission expects entities seeking approval for interstate
transmission siting will be major transmission utilities capable of
financing complex and costly transmission projects. The Commission
anticipates that the high cost of construction of transmission
facilities will bar the entry into this field by small entities as
defined by the RFA. Therefore, the Commission concludes that this
proposed rule would not have a significant economic impact on a
substantial number of small entities.
---------------------------------------------------------------------------

    \41\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------

VI. Document Availability

    238. 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 FERC's Home Page (http://www.ferc.gov) and in FERC's

Public Reference Room during normal business hours (8:30 a.m. to 5 p.m.
Eastern time) at 888 First Street, NE., Room 2A, Washington DC 20426.
    239. From FERC'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.
    240. User assistance is available for eLibrary and the FERC's
website during normal business hours from our Help line at (202) 502-
8222 or the Public Reference Room at<PHONE_NUMBER> Press 0, TTY (202)
502-8659. E-mail the Public Reference Room at public.reference
<EMAIL_ADDRESS>

VII. Effective Date and Congressional Notification

    241. These regulations are effective January 30, 2007. 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. The Commission will submit
the Final Rule to both houses of Congress and to General Accounting
Office

List of Subjects

18 CFR Part 50

    Administrative practice and procedure, Electric power, Reporting
and recordkeeping requirements.

18 CFR Part 380

    Environmental impact statements, Reporting and recordkeeping
requirements.

    By the Commission. Commissioner Kelly dissenting in part with a
separate statement attached.
Magalie R. Salas,
Secretary.

0
In consideration of the foregoing, the Commission adds Part 50 and
amends Part 380, Chapter I, Title 18, Code of Federal Regulations, as
follows:
0
1. Part 50 is added to Subchapter B to read as follows:

PART 50--APPLICATIONS FOR PERMITS TO SITE INTERSTATE ELECTRIC
TRANSMISSION FACILITIES

Sec.
50.1 Definitions.
50.2 Purpose and intent of rules.
50.3 Applications/pre-filing; rules and format.
50.4 Stakeholder participation.
50.5 Pre-filing procedures.
50.6 Applications: general content.
50.7 Applications: exhibits.
50.8 Acceptance/rejection of applications.
50.9 Notice of application.
50.10 Interventions.
50.11 General conditions applicable to permits.

    Authority: 16 U.S.C. 824p, DOE Delegation Order No. 00-004.00A.

Sec.  50.1  Definitions.

    As used in this part:
    Affected landowners include owners of property interests, as noted
in the most recent county/city tax records as receiving the tax notice,
whose property:
    (1) Is directly affected (i.e., crossed or used) by the proposed
activity, including all facility sites, rights-of-way, access roads,
staging areas, and temporary workspace; or
    (2) Abuts either side of an existing right-of-way or facility site
owned in fee by any utility company, or abuts the edge of a proposed
facility site or right-of-way which runs along a property line in the
area in which the facilities would be constructed, or contains a
residence within 50 feet of a proposed construction work area.
    Director means the Director of the Office of Energy Projects or his
designees.
    Federal authorization means permits, special use authorization,
certifications, opinions, or other approvals that may be required under
Federal law in order to site a transmission facility.
    National interest electric transmission corridor means any
geographic area experiencing electric energy transmission capacity
constraints or congestion that adversely affects consumers, as
designated by the Secretary of Energy.
    Permitting entity means any Federal or State agency, Indian tribe,
multistate, or local agency that is responsible for issuing separate
authorizations pursuant to Federal law that are required to construct
electric transmission facilities in a national interest electric
transmission corridor.
    Stakeholder means any Federal, State, interstate, Tribal, or local
agency, any affected non-governmental organization, affected landowner,
or interested person.
    Transmitting utility means an entity that owns, operates, or
controls facilities used for the transmission of electric energy in
interstate commerce for the sale of electric energy at wholesale.

Sec.  50.2  Purpose and intent of rules.

    (a) The purpose of the regulations in this part is to provide for
efficient and timely review of requests for permits for the siting of
electric transmission facilities under section 216 of the Federal Power
Act. The regulations ensure that each stakeholder is afforded an
opportunity to present views and recommendations with respect to the
need for and impact of a facility covered by the permit. They also
coordinate, to the maximum extent practicable, the Federal
authorization and review processes of other Federal and State agencies,
Indian tribes, multistate, and local entities that are responsible for
conducting any separate permitting and environmental reviews of the
proposed facilities.
    (b) Every applicant shall file all pertinent data and information
necessary for a full and complete understanding of the proposed
project.
    (c) Every requirement of this part will be considered as an
obligation of the applicant which can only be avoided by a definite and
positive showing that the information or data called for by the
applicable rules is not necessary for the consideration and ultimate
determination of the application.

    (d) The burden of assuring that all applications and information
submitted under this part is in an intelligible form and any omission
of data is justified rests with the applicant.

Sec.  50.3  Applications/pre-filing; rules and format.

    (a) Filings are subject to the formal paper and electronic filing
requirements for proceedings before the Commission as provided in part
385 of this chapter.
    (b) Applications, amendments, and all exhibits and other
submissions required to be furnished by an applicant to the Commission
under this part must be submitted in an original and 7 conformed
copies.
    (c) When an application considered alone is incomplete and depends
vitally upon information in another application, it will not be
accepted for filing until the supporting application has been filed.
When applications are interdependent, they must be filed concurrently.
    (d) All filings must be signed in compliance with Sec.  385.2005 of
this chapter.
    (e) The Commission will conduct a paper hearing on applications for
permits for electric transmission facilities.
    (f) Permitting entities will be subject to the filing requirements
of this section and the prompt and binding intermediate milestones and
ultimate deadlines established in the notice issued under Sec.  50.9.
    (g) Any person submitting documents containing critical energy
infrastructure information must follow the procedures specified in
Sec.  388.113 of this chapter.

Sec.  50.4  Stakeholder participation.

    A Project Participation Plan is required to ensure stakeholders
have access to accurate and timely information on the proposed project
and permit application process.
    (a) Project Participation Plan. An applicant must develop a Project
Participation Plan and file it with the pre-filing materials under
Sec.  50.5(c)(7) that:
    (1) Identifies specific tools and actions to facilitate stakeholder
communications and public information, including an up-to-date project
Web site and a readily accessible, single point of contact within the
company;
    (2) Lists all central locations in each county throughout the
project area where the applicant will provide copies of all their
filings related to the proposed project; and
    (3) Includes a description and schedule explaining how the
applicant intends to respond to requests for information from the
public as well as Federal, State, and Tribal permitting agencies, and
other legal entities with local authorization requirements.
    (b) Document Availability. (1) Within three business days of the
date the pre-filing materials are filed or application is issued a
docket number, an applicant must ensure that:
    (i) Complete copies of the pre-filing or application materials are
available in accessible central locations in each county throughout the
project area, either in paper or electronic format; and
    (ii) Complete copies of all filed materials are available on the
project Web site.
    (2) An applicant is not required to serve voluminous or difficult
to reproduce material, such as copies of certain environmental
information, on all parties, as long as such material is publicly
available in an accessible central location in each county throughout
the project area and on the applicant's project website.
    (c) Project notification. (1) The applicant must make a good faith
effort to notify: all affected landowners; landowners with a residence
within a quarter mile from the edge of the construction right-of-way of
the proposed project; towns and communities; permitting agencies; other
local, State, Tribal, and Federal governments and agencies involved in
the project; electric utilities and transmission owners and operators
that are or may be connected to the application's proposed transmission
facilities; and any known individuals that have expressed an interest
in the State permitting proceeding. Notification must be made:
    (i) By certified or first class mail, sent:
    (A) Within 14 days after the Director notifies the applicant of the
commencement of the pre-filing process under Sec.  50.5(d);
    (B) Within 3 business days after the Commission notices the
application under Sec.  50.9; and
    (ii) By twice publishing a notice of the pre-filing request and
application filings, in a daily, weekly, and/or tribal newspaper of
general circulation in each county in which the project is located, no
later than 14 days after the date that a docket number is assigned for
the pre-filing process or to the application.
    (2) Contents of participation notice
    (i) The pre-filing request notification must, at a minimum,
include:
    (A) The docket number assigned to the proceeding;
    (B) The most recent edition of the Commission's pamphlet Electric
Transmission Facilities Permit Process. The newspaper notice need only
refer to the pamphlet and indicate that it is available on the
Commission's website;
    (C) A description of the applicant and a description of the
proposed project, its location (including a general location map), its
purpose, and the timing of the project;
    (D) A general description of the property the applicant will need
from an affected landowner if the project is approved, how to contact
the applicant, including a local or toll-free phone number, the name of
a specific person to contact who is knowledgeable about the project,
and a reference to the project website. The newspaper notice need not
include a description of the property, but should indicate that a
separate notice is being mailed to affected landowners and governmental
entities;
    (E) A brief summary of what rights the affected landowner has at
the Commission and in proceedings under the eminent domain rules of the
relevant State. The newspaper notice does not need to include this
summary;
    (F) Information on how to get a copy of the pre-filing information
from the company and the location(s) where copies of the pre-filing
information may be found as specified in paragraph (b) of this section;
    (G) A copy of the Director's notification of commencement of the
pre-filing process, the Commission's Internet address, and the
telephone number for the Commission's Office of External Affairs; and
    (H) Information explaining the pre-filing and application process
and when and how to intervene in the application proceedings.
    (ii) The application notification must include the Commission's
notice issued under Sec.  50.9.
    (3) If, for any reason, a stakeholder has not yet been identified
when the notices under this paragraph are sent or published, the
applicant must supply the information required under paragraphs
(c)(2)(i) and (ii) of this section when the stakeholder is identified.
    (4) If the notification is returned as undeliverable, the applicant
must make a reasonable attempt to find the correct address and notify
the stakeholder.
    (5) Access to critical energy infrastructure information is subject
to the requirements of Sec.  388.113 of this chapter.

Sec.  50.5  Pre-filing procedures.

    (a) Introduction. Any applicant seeking a permit to site new
electric transmission facilities or modify existing facilities must
comply with the

following pre-filing procedures prior to filing an application for
Commission review.
    (b) Initial consultation. An applicant must meet and consult with
the Director concerning the proposed project.
    (1) At the initial consultation meeting, the applicant must be
prepared to discuss the nature of the project, the contents of the pre-
filing request, and the status of the applicant's progress toward
obtaining the information required for the pre-filing request described
in paragraph (c) of this section.
    (2) The initial consultation meeting will also include a discussion
of whether a third-party contractor is likely to be needed to prepare
the environmental documentation for the project and the specifications
for the applicant's solicitation for prospective third-party
contractors.
    (3) The applicant also must discuss how its proposed project will
be subject to the Commission's jurisdiction under section 216(b)(1) of
the Federal Power Act. If the application is seeking Commission
jurisdiction under section 216(b)(1)(C) of the Federal Power Act, the
applicant must be prepared to discuss when it filed its application
with the State and the status of that application.
    (c) Contents of the initial filing. An applicant's pre-filing
request will be filed after the initial consultation and must include
the following information:
    (1) A description of the schedule desired for the project,
including the expected application filing date, desired date for
Commission approval, and proposed project operation date, as well as
the status of any State siting proceedings.
    (2) A detailed description of the project, including location maps
and plot plans to scale showing all major components, including a
description of zoning and site availability for any permanent
facilities.
    (3) A list of the permitting entities responsible for conducting
separate Federal permitting and environmental reviews and
authorizations for the project, including contact names and telephone
numbers, and a list of local entities with local authorization
requirements. The filing must include information concerning:
    (i) How the applicant intends to account for each of the relevant
entity's permitting and environmental review schedules, including its
progress in DOE's pre-application process; and
    (ii) When the applicant proposes to file with these permitting and
local entities for the respective permits or other authorizations.
    (4) A list of all affected landowners and other stakeholders
(include contact names and telephone numbers) that have been contacted,
or have contacted the applicant, about the project.
    (5) A description of what other work already has been done,
including, contacting stakeholders, agency and Indian tribe
consultations, project engineering, route planning, environmental and
engineering contractor engagement, environmental surveys/studies, open
houses, and any work done or actions taken in conjunction with a State
proceeding. This description also must include the identification of
the environmental and engineering firms and sub-contractors under
contract to develop the project.
    (6) Proposals for at least three prospective third-party
contractors from which Commission staff may make a selection to assist
in the preparation of the requisite NEPA document, if the Director
determined a third-party contractor would be necessary in the Initial
Consultation meeting.
    (7) A proposed Project Participation Plan, as set forth in Sec.
50.4(a).
    (d) Director's notice. (1) When the Director finds that an
applicant seeking authority to site and construct an electric
transmission facility has adequately addressed the requirements of
paragraphs (a), (b), and (c) of this section, and any other
requirements determined at the Initial Consultation meeting, the
Director will so notify the applicant.
    (i) The notification will designate the third-party contractor, and
    (ii) The pre-filing process will be deemed to have commenced on the
date of the Director's notification.
    (2) If the Director determines that the contents of the initial
pre-filing request are insufficient, the applicant will be notified and
given a reasonable time to correct the deficiencies.
    (e) Subsequent filing requirements. Upon the Director's issuance of
a notice commencing an applicant's pre-filing process, the applicant
must:
    (1) Within 7 days, finalize and file the Project Participation
Plan, as defined in Sec.  50.4(a), and establish the dates and
locations at which the applicant will conduct meetings with
stakeholders and Commission staff.
    (2) Within 14 days, finalize the contract with the selected third-
party contractor, if applicable.
    (3) Within 14 days:
    (i) Provide all identified stakeholders with a copy of the
Director's notification commencing the pre-filing process;
    (ii) Notify affected landowners in compliance with the requirements
of Sec.  50.4(c); and
    (iii) Notify permitting entities and request information detailing
any specific information not required by the Commission in the resource
reports required under Sec.  380.16 of this chapter that the permitting
entities may require to reach a decision concerning the proposed
project. The responses of the permitting entities must be filed with
the Commission, as well as being provided to the applicant.
    (4) Within 30 days, submit a mailing list of all stakeholders
contacted under paragraph (e)(3) of this section, including the names
of the Federal, State, Tribal, and local jurisdictions'
representatives. The list must include information concerning affected
landowner notifications that were returned as undeliverable.
    (5) Within 30 days, file a summary of the project alternatives
considered or under consideration.
    (6) Within 30 days, file an updated list of all Federal, State,
Tribal, and local agencies permits and authorizations that are
necessary to construct the proposed facilities. The list must include:
    (i) A schedule detailing when the applications for the permits and
authorizations will be submitted (or were submitted);
    (ii) Copies of all filed applications; and
    (iii) The status of all pending permit or authorization requests
and of the Secretary of Energy's pre-application process being
conducted under section 216(h)(4)(C) of the Federal Power Act.
    (7) Within 60 days, file the draft resource reports required in
Sec.  380.16 of this chapter.
    (8) On a monthly basis, file status reports detailing the
applicant's project activities including surveys, stakeholder
communications, and agency and tribe meetings, including updates on the
status of other required permits or authorizations. If the applicant
fails to respond to any request for additional information, fails to
provide sufficient information, or is not making sufficient progress
towards completing the pre-filing process, the Director may issue a
notice terminating the process.
    (f) Concluding the pre-filing process. The Director will determine
when the information gathered during the pre-filing process is
complete, after which the applicant may file an application. An
application must contain all the information specified by the
Commission staff during the pre-filing process, including the
environmental material required in part 380 of this chapter and the
exhibits required in Sec.  50.7.

Sec.  50.6  Applications: general content.

    Each application filed under this part must provide the following
information:
    (a) The exact legal name of applicant; its principal place of
business; whether the applicant is an individual, partnership,
corporation, or otherwise; the State laws under which the applicant is
organized or authorized; and the name, title, and mailing address of
the person or persons to whom communications concerning the application
are to be addressed.
    (b) A concise description of applicant's existing operations.
    (c) A concise general description of the proposed project
sufficient to explain its scope and purpose. The description must, at a
minimum: Describe the proposed geographic location of the principal
project features and the planned routing of the transmission line;
contain the general characteristics of the transmission line including
voltage, types of towers, origin and termination points of the
transmission line, and the geographic character of area traversed by
the line; and be accompanied by an overview map of sufficient scale to
show the entire transmission route on one or a few 8.5 by 11-inch
sheets.
    (d) Verification that the proposed route lies within a national
interest electric transmission corridor designated by the Secretary of
the Department of Energy under section 216 of the Federal Power Act.
    (e) Evidence that:
    (1) A State in which the transmission facilities are to be
constructed or modified does not have the authority to approve the
siting of the facilities or consider the interstate benefits expected
to be achieved by the proposed construction or modification of
transmission facilities in the State;
    (2) The applicant is a transmitting utility but does not qualify to
apply for a permit or siting approval of the proposed project in a
State because the applicant does not serve end-use customers in the
State; or
    (3) A State commission or other entity that has the authority to
approve the siting of the facilities has:
    (i) Withheld approval for more than one year after the filing of an
application seeking approval under applicable law or one year after the
designation of the relevant national interest electric transmission
corridor, whichever is later; or
    (ii) Conditioned its approval in such a manner that the proposed
construction or modification will not significantly reduce transmission
congestion in interstate commerce or is not economically feasible.
    (f) A demonstration that the facilities to be authorized by the
permit will be used for the transmission of electric energy in
interstate commerce, and that the proposed construction or
modification:
    (1) Is consistent with the public interest;
    (2) Will significantly reduce transmission congestion in interstate
commerce and protects or benefits consumers;
    (3) Is consistent with sound national energy policy and will
enhance energy interdependence; and
    (4) Will maximize, to the extent reasonable and economical, the
transmission capabilities of existing towers or structures.
    (g) A description of the proposed construction and operation of the
facilities, including the proposed dates for the beginning and
completion of construction and the commencement of service.
    (h) A general description of project financing.
    (i) A full statement as to whether any other application to
supplement or effectuate the applicant's proposals must be or is to be
filed by the applicant, any of the applicant's customers, or any other
person, with any other Federal, State, Tribal, or other regulatory
body; and if so, the nature and status of each such application.
    (j) A table of contents that must list all exhibits and documents
filed in compliance with this part, as well as all other documents and
exhibits otherwise filed, identifying them by their appropriate titles
and alphabetical letter designations. The alphabetical letter
designations specified in Sec.  50.7 must be strictly adhered to and
extra exhibits submitted at the volition of applicant must be
designated in sequence under the letter Z (Z1, Z2, Z3, etc.).
    (k) A form of notice suitable for publication in the Federal
Register, as provided by Sec.  50.9(a), which will briefly summarize
the facts contained in the application in such a way as to acquaint the
public with its scope and purpose. The form of notice also must include
the name, address, and telephone number of an authorized contact
person.

Sec.  50.7  Applications: exhibits.

    Each exhibit must contain a title page showing the applicant's
name, title of the exhibit, the proper letter designation of the
exhibit, and, if 10 or more pages, a table of contents, citing by page,
section number or subdivision, the component elements or matters
contained in the exhibit.
    (a) Exhibit A--Articles of incorporation and bylaws. If the
applicant is not an individual, a conformed copy of its articles of
incorporation and bylaws, or other similar documents.
    (b) Exhibit B--State authorization. For each State where the
applicant is authorized to do business, a statement showing the date of
authorization, the scope of the business the applicant is authorized to
carry on and all limitations, if any, including expiration dates and
renewal obligations. A conformed copy of applicant's authorization to
do business in each State affected must be supplied upon request.
    (c) Exhibit C--Company officials. A list of the names and business
addresses of the applicant's officers and directors, or similar
officials if the applicant is not a corporation.
    (d) Exhibit D--Other pending applications and filings. A list of
other applications and filings submitted by the applicant that are
pending before the Commission at the time of the filing of an
application and that directly and significantly affect the proposed
project, including an explanation of any material effect the grant or
denial of those other applications and filings will have on the
application and of any material effect the grant or denial of the
application will have on those other applications and filings.
    (e) Exhibit E--Maps of general location of facilities. The general
location map required under Sec.  50.5(c) must be provided as Exhibit
E. Detailed maps required by other exhibits must be filed in those
exhibits, in a format determined during the pre-filing process in Sec.
50.5.
    (f) Exhibit F--Environmental report. An environmental report as
specified in Sec. Sec.  380.3 and 380.16 of this chapter. The applicant
must submit all appropriate revisions to Exhibit F whenever route or
site changes are filed. These revisions must identify the locations by
mile post and describe all other specific differences resulting from
the route or site changes, and should not simply provide revised totals
for the resources affected. The format of the environmental report
filing will be determined during the pre-filing process required under
Sec.  50.5.
    (g) Exhibit G--Engineering data.
    (1) A detailed project description including:
    (i) Name and destination of the project;
    (ii) Design voltage rating (kV);
    (iii) Operating voltage rating (kV);
    (iv) Normal peak operating current rating;
    (v) Line design features for minimizing television and/or radio

interference cause by operation of the proposed facilities; and
    (vi) Line design features that minimize audible noise during fog/
rain caused by operation of the proposed facilities, including
comparing expected audible noise levels to the applicable Federal,
State, and local requirements.
    (2) A conductor, structures, and substations description including:
    (i) Conductor size and type;
    (ii) Type of structures;
    (iii) Height of typical structures;
    (iv) An explanation why these structures were selected;
    (v) Dimensional drawings of the typical structures to be used in
the project; and
    (vi) A list of the names of all new (and existing if applicable)
substations or switching stations that will be associated with the
proposed new transmission line.
    (3) The location of the site and right-of-way including:
    (i) Miles of right-of-way;
    (ii) Miles of circuit;
    (iii) Width of the right-of-way;
    (iv) A brief description of the area traversed by the proposed
transmission line, including a description of the general land uses in
the area and the type of terrain crossed by the proposed line;
    (4) Assumptions, bases, formulae, and methods used in the
development and preparation of the diagrams and accompanying data, and
a technical description providing the following information:
    (i) Number of circuits, with identification as to whether the
circuit is overhead or underground;
    (ii) The operating voltage and frequency; and
    (iii) Conductor size, type and number of conductors per phase.
    (5) If the proposed interconnection is an overhead line, the
following additional information also must be provided:
    (i) The wind and ice loading design parameters;
    (ii) A full description and drawing of a typical supporting
structure including strength specifications;
    (iii) Structure spacing with typical ruling and maximum spans;
    (iv) Conductor (phase) spacing; and
    (v) The designed line-to-ground and conductor-side clearances.
    (6) If an underground or underwater interconnection is proposed,
the following additional information also must be provided:
    (i) Burial depth;
    (ii) Type of cable and a description of any required supporting
equipment, such as insulation medium pressurizing or forced cooling;
    (iii) Cathodic protection scheme; and
    (iv) Type of dielectric fluid and safeguards used to limit
potential spills in waterways.
    (7) Technical diagrams that provide clarification of any of the
above items should be included.
    (8) Any other data or information not previously identified that
has been identified as a minimum requirement for the siting of a
transmission line in the State in which the facility will be located.
    (h) Exhibit H--System analysis data. An analysis evaluating the
impact the proposed facilities will have on the existing electric
transmission system performance, including:
    (1) An analysis of the existing and expected congestion on the
electric transmission system.
    (2) Power flow cases used to analyze the proposed and future
transmission system under anticipated load growth, operating
conditions, variations in power import and export levels, and
additional transmission facilities required for system reliability. The
cases must:
    (i) Provide all files to model normal, single contingency, multiple
contingency, and special protective systems, including the special
protective systems' automatic switching or load shedding system; and
    (ii) State the assumptions, criteria, and guidelines upon which
they are based and take into consideration transmission facility
loading; first contingency incremental transfer capability (FCITC);
normal incremental transfer capability (NITC); system protection; and
system stability.
    (3) A stability analysis including study assumptions, criteria, and
guidelines used in the analysis, including load shedding allowables.
    (4) A short circuit analysis for all power flow cases.
    (5) A concise analysis to include:
    (i) An explanation of how the proposed project will improve system
reliability over the long and short term;
    (ii) An analysis of how the proposed project will impact long term
regional transmission expansion plans;
    (iii) An analysis of how the proposed project will impact
congestion on the applicant's entire system; and
    (iv) A description of proposed high technology design features.
    (6) Detailed single-line diagrams, including existing system
facilities identified by name and circuit number, that show system
transmission elements, in relation to the project and other principal
interconnected system elements, as well as power flow and loss data
that represent system operating conditions.
    (i) Exhibit I--Project Cost and Financing. (1) A statement of
estimated costs of any new construction or modification.
    (2) The estimated capital cost and estimated annual operations and
maintenance expense of each proposed environmental measure.
    (3) A statement and evaluation of the consequences of denial of the
transmission line permit application.
    (j) Exhibit J--Construction, operation, and management. A concise
statement providing arrangements for supervision, management,
engineering, accounting, legal, or other similar service to be rendered
in connection with the construction or operation of the project, if not
to be performed by employees of the applicant, including reference to
any existing or contemplated agreements, together with a statement
showing any affiliation between the applicant and any parties to the
agreements or arrangements.

Sec.  50.8  Acceptance/rejection of applications.

    (a) Applications will be docketed when received and the applicant
so advised.
    (b) If an application patently fails to comply with applicable
statutory requirements or with applicable Commission rules,
regulations, and orders for which a waiver has not been granted, the
Director may reject the application as provided by Sec.  385.2001(b) of
this chapter. This rejection is without prejudice to an applicant's
refiling a complete application. However, an application will not be
rejected solely on the basis that the environmental reports are
incomplete because the company has not been granted access by affected
landowners to perform required surveys.
    (c) An application that relates to a proposed project or
modification for which a prior application has been filed and rejected,
will be docketed as a new application.

Sec.  50.9  Notice of application.

    (a) Notice of each application filed, except when rejected in
accordance with Sec.  50.8, will be issued and subsequently published
in the Federal Register.
    (b) The notice will establish prompt and binding intermediate
milestones and ultimate deadlines for the coordination, and review of,
and action on Federal authorization decisions relating to, the proposed
facilities.

Sec.  50.10  Interventions.

    Notices of applications, as provided by Sec.  50.9, will fix the
time within which

any person desiring to participate in the proceeding may file a
petition to intervene, and within which any interested regulatory
agency, as provided by Sec.  385.214 of this chapter, desiring to
intervene may file its notice of intervention.

Sec.  50.11  General conditions applicable to permits.

    (a) The following terms and conditions, among others as the
Commission will find are required by the public interest, will attach
to the issuance of each permit and to the exercise of the rights
granted under the permit.
    (b) The permit will be void and without force or effect unless
accepted in writing by the permittee within 30 days from the date of
the order issuing the permit. Provided that, when an applicant files
for rehearing of the order in accordance with FPA section 313(a), the
acceptance must be filed within 30 days from the issue date of the
order of the Commission upon the application for rehearing or within 30
days from the date on which the application may be deemed to have been
denied when the Commission has not acted on such application within 30
days after it has been filed. Provided further, that when a petition
for review is filed in accordance with the provisions of FPA section
313(b), the acceptance shall be filed within 30 days after final
disposition of the judicial review proceedings thus initiated.
    (c) Standards of construction and operation. In determining
standard practice, the Commission will be guided by the provisions of
the American National Standards Institute, Incorporated, the National
Electrical Safety Code, and any other codes and standards that are
generally accepted by the industry, except as modified by this
Commission or by municipal regulators within their jurisdiction. Each
electric utility will construct, install, operate, and maintain its
plant, structures, equipment, and lines in accordance with these
standards, and in a manner to best accommodate the public, and to
prevent interference with service furnished by other public or non-
public utilities insofar as practical.
    (d) Written authorization must be obtained from the Director prior
to commencing construction of the facilities or initiating operations.
Requests for these authorizations must demonstrate compliance with all
terms and conditions of the construction permit.
    (e) Any authorized construction or modification must be completed
and made available for service by the permitee within a period of time
to be specified by the Commission in each order issuing the
transmission line construction permit. If facilities are not completed
within the specified timeframe, the permittee must file for an
extension of time under Sec.  385.2008 of this chapter.
    (f) A permittee must file with the Commission, in writing and under
oath, an original and four conformed copies, as provided in Sec.
385.2011 of this chapter, of the following:
    (1) Within ten days after the bona fide beginning of construction,
notice of the date of the beginning; and
    (2) Within ten days after authorized facilities have been
constructed and placed in service, notice of the date of the completion
of construction and commencement of service.
    (g) The permit issued to the applicant may be transferred, subject
to the approval of the Commission, to a person who agrees to comply
with the terms, limitations or conditions contained in the filing and
in every subsequent Order issued thereunder. A permit holder seeking to
transfer a permit must file with the Secretary a petition for approval
of the transfer. The petition must:
    (1) State the reasons supporting the transfer;
    (2) Show that the transferee is qualified to carry out the
provisions of the permit and any Orders issued under the permit;
    (3) Be verified by all parties to the proposed transfer;
    (4) Be accompanied by a copy of the proposed transfer agreement;
    (5) Be accompanied by an affidavit of service of a copy on the
parties to the permit proceeding; and
    (6) Be accompanied by an affidavit of publication of a notice
concerning the petition and service of such notice on all affected
landowners that have executed agreements to convey property rights to
the transferee and all other persons, municipalities or agencies
entitled by law to be given notice of, or be served with a copy of, any
application to construct a major electric generation facility.

PART 380--REGULATIONS IMPLEMENTING THE NATIONAL ENVIRONMENTAL
POLICY ACT

0
2. The authority citation for part 380 continues to read as follows:

    Authority: 42 U.S.C. 4321-4370a, 7101-7352; E.O. 12009, 3 CFR
1978. Comp., p. 142.

0
3. Section 380.3 is amended by republishing paragraphs (a) introductory
text and (b) introductory text, and by adding a new paragraph (c)(3) to
read as follows:

Sec.  380.3  Environmental information to be supplied by an applicant.

    (a) An applicant must submit information as follows:
* * * * *
    (b) An applicant must also:
* * * * *
    (c) * * *
    (3) Electric transmission project. For pre-filing requests and
applications filed under section 216 of the Federal Power Act
identified in Sec. Sec.  380.5(b)(14) and 380.6(a)(5).

0
4. Section 380.5 is amended by revising paragraphs (b)(11), (b)(12),
and (b)(13), and by adding a new paragraph (b)(14) to read as follows:

Sec.  380.5  Actions that require an environmental assessment.

    (b) * * *
    (11) Approval of electric interconnections and wheeling under
section 202(b), 210, 211, and 212 of the Federal Power Act, unless
excluded under Sec.  380.4(a)(17);
    (12) Regulations or proposals for legislation not included under
Sec.  380.4(a)(2);
    (13) Surrender of water power licenses and exemptions where project
works exist or ground disturbing activity has occurred and amendments
to water power licenses and exemptions that require ground disturbing
activity or changes to project works or operations; and
    (14) Except as identified in Sec.  380.6, authorization to site new
electric transmission facilities under section 216 of the Federal Power
Act and DOE Delegation Order No. 00-004.00A.

0
5. Section 380.6 is amended by revising paragraphs (a)(3) and (a)(4)
and by adding a new paragraph (a)(5) to read as follows:

Sec.  380.6  Actions that require an environmental impact statement.

    (a) * * *
    (3) Major pipeline construction projects under section 7 of the
Natural Gas Act using right-of-way in which there is no existing
natural gas pipeline;
    (4) Licenses under Part I of the Federal Power Act and part 4 of
this chapter for construction of any unconstructed water power
projects; and
    (5) Major electric transmission facilities under section 216 of the
Federal Power Act and DOE Delegation Order No. 00-004.00A using right-
of-way in which there is no existing facility.
* * * * *

0
6. Section 380.8 is revised to read as follows:

Sec.  380.8  Preparation of environmental documents.

    The preparation of environmental documents, as defined in Sec.
1508.10 of the regulations of the Council on Environmental Quality (40
CFR 1508.10), on hydroelectric projects, natural gas facilities, and
electric transmission facilities in national interest electric
transmission corridors is the responsibility of the Commission's Office
of Energy Projects, 888 First Street NE., Washington, DC 20426, (202)
219-8700. Persons interested in status reports or information on
environmental impact statements or other elements of the NEPA process,
including the studies or other information the Commission may require
on these projects, can contact this office.

0
7. Section 380.10 is amended by adding paragraph (a)(2)(iii) to read as
follows:

Sec.  380.10  Participation in Commission proceeding.

    (a) * * *
    (2) * * *
    (iii) Commission pre-filing activities commenced under Sec. Sec.
157.21 and 50.5 of this chapter, respectively, are not considered
proceedings under part 385 of this chapter and are not open to motions
to intervene. Once an application is filed under part 157 subpart A or
part 50 of this chapter, any person may file a motion to intervene in
accordance with Sec. Sec.  157.10 or 50.10 of this chapter or in
accordance with this section.
* * * * *

0
8. Section 380.15 is amended by revising paragraph (c), the heading in
paragraph (d), and paragraph (f)(5) to read as follows:

Sec.  380.15  Siting and maintenance requirements.

* * * * *
    (c) Safety regulations. The requirements of this paragraph do not
affect a project sponsor's obligations to comply with safety
regulations of the U.S. Department of Transportation and recognized
safe engineering practices for Natural Gas Act projects and the
National Electric Safety Code for section 216 Federal Power Act
projects.
    (d) Pipeline and electric transmission facilities construction. * *
*
* * * * *
    (f) * * *
    (5) For Natural Gas Act projects, the site of above-ground
facilities which are visible from nearby residences or public areas,
should be planted in trees and shrubs, or other appropriate landscaping
and should be installed to enhance the appearance of the facilities,
consistent with operating needs.

0
9. A new Sec.  380.16 is added to read as follows:

Sec.  380.16  Environmental reports for section 216 Federal Power Act
Permits.

    (a) Introduction. (1) The applicant must submit an environmental
report with any application that proposes the construction or
modification of any facility identified in Sec.  380.3(c)(3). The
environmental report must include the 11 resource reports and related
material described in this section.
    (2) The detail of each resource report must be commensurate with
the complexity of the proposal and its potential for environmental
impact. Each topic in each resource report must be addressed or its
omission justified, unless the data is not required for that type of
proposal. If material required for one resource report is provided in
another resource report or in another exhibit, it may be cross
referenced. If any resource report topic is required for a particular
project but is not provided at the time the application is filed, the
environmental report must explain why it is missing and when the
applicant anticipates it will be filed.
    (b) General requirements. As appropriate, each resource report
must:
    (1) Address conditions or resources that are likely to be directly
or indirectly affected by the project;
    (2) Identify significant environmental effects expected to occur as
a result of the project;
    (3) Identify the effects of construction, operation (including
maintenance and malfunctions), as well as cumulative effects resulting
from existing or reasonably foreseeable projects;
    (4) Identify measures proposed to enhance the environment or to
avoid, mitigate, or compensate for adverse effects of the project; and
    (5) Provide a list of publications, reports, and other literature
or communications, including agency contacts, that were cited or relied
upon to prepare each report. This list must include the names and
titles of the persons contacted, their affiliations, and telephone
numbers.
    (6) Whenever this section refers to ``mileposts'' the applicant may
substitute ``survey centerline stationing'' if so preferred. However,
whatever method is chosen must be used consistently throughout the
resource reports.
    (c) Resource Report 1--General project description. This report
must describe facilities associated with the project, special
construction and operation procedures, construction timetables, future
plans for related construction, compliance with regulations and codes,
and permits that must be obtained. Resource Report 1 must:
    (1) Describe and provide location maps of all project facilities,
include all facilities associated with the project (such as
transmission line towers, substations, and any appurtenant facilities),
to be constructed, modified, replaced, or removed, including related
construction and operational support activities and areas such as
maintenance bases, staging areas, communications towers, power lines,
and new access roads (roads to be built or modified). As relevant, the
report must describe the length and size of the proposed transmission
line conductor cables, the types of appurtenant facilities that would
be constructed, and associated land requirements.
    (2) Provide the following maps and photos:
    (i) Current, original United States Geological Survey (USGS) 7.5-
minute series topographic maps or maps of equivalent detail, covering
at least a 0.5-mile-wide corridor centered on the electric transmission
facility centerline, with integer mileposts identified, showing the
location of rights-of-way, new access roads, other linear construction
areas, substations, and construction materials storage areas. Nonlinear
construction areas must be shown on maps at a scale of 1:3,600 or
larger keyed graphically and by milepost to the right-of-way maps. In
areas where the facilities described in paragraph (j)(6) of this
section are located, topographic map coverage must be expanded to
depict those facilities.
    (ii) Original aerial images or photographs or photo-based alignment
sheets based on these sources, not more than one year old (unless older
ones accurately depict current land use and development) and with a
scale of 1:6,000, or larger, showing the proposed transmission line
route and location of transmission line towers, substations and
appurtenant facilities, covering at least a 0.5 mile-wide corridor, and
including mileposts. The aerial images or photographs or photo-based
alignment sheets must show all existing transmission facilities located
in the area of the proposed facilities and the location of habitable
structures, radio transmitters and other electronic installations, and
airstrips. Older images/photographs/alignment sheets must be modified
to show any residences not depicted in the original.

In areas where the facilities described in paragraph (j)(6) of this
section are located, aerial photographic coverage must be expanded to
depict those facilities. Alternative formats (e.g., blue-line prints of
acceptable resolution) need prior approval by the environmental staff
of the Office of Energy Projects.
    (iii) In addition to the copies required under Sec.  50.3(b) of
this chapter, the applicant must send three additional copies of
topographic maps and aerial images/photographs directly to the
environmental staff of the Commission's Office of Energy Projects.
    (3) Describe and identify by milepost, proposed construction and
restoration methods to be used in areas of rugged topography,
residential areas, active croplands and sites where explosives are
likely to be used.
    (4) Identify the number of construction spreads, average workforce
requirements for each construction spread and estimated duration of
construction from initial clearing to final restoration, and any
identified constraints to the timing of construction.
    (5) Describe reasonably foreseeable plans for future expansion of
facilities, including additional land requirements and the
compatibility of those plans with the current proposal.
    (6) Describe all authorizations required to complete the proposed
action and the status of applications for such authorizations. Identify
environmental mitigation requirements specified in any permit or
proposed in any permit application to the extent not specified
elsewhere in this section.
    (7) Provide the names and mailing addresses of all affected
landowners identified in Sec.  50.5(c)(4) of this chapter and certify
that all affected landowners will be notified as required in Sec.
50.4(c) of this chapter.
    (d) Resource Report 2--Water use and quality. This report must
describe water quality and provide data sufficient to determine the
expected impact of the project and the effectiveness of mitigative,
enhancement, or protective measures. Resource Report 2 must:
    (1) Identify and describe by milepost waterbodies and municipal
water supply or watershed areas, specially designated surface water
protection areas and sensitive waterbodies, and wetlands that would be
crossed. For each waterbody crossing, identify the approximate width,
State water quality classifications, any known potential pollutants
present in the water or sediments, and any potable water intake sources
within three miles downstream.
    (2) Provide a description of site-specific construction techniques
that will be used at each major waterbody crossing.
    (3) Describe typical staging area requirements at waterbody and
wetland crossings. Also, identify and describe waterbodies and wetlands
where staging areas are likely to be more extensive.
    (4) Include National Wetland Inventory (NWI) maps. If NWI maps are
not available, provide the appropriate State wetland maps. Identify for
each crossing, the milepost, the wetland classification specified by
the U.S. Fish and Wildlife Service, and the length of the crossing.
Include two copies of the NWI maps (or the substitutes, if NWI maps are
not available) clearly showing the proposed route and mileposts.
Describe by milepost, wetland crossings as determined by field
delineations using the current Federal methodology.
    (5) Identify aquifers within excavation depth in the project area,
including the depth of the aquifer, current and projected use, water
quality, and known or suspected contamination problems.
    (6) Discuss proposed mitigation measures to reduce the potential
for adverse impacts to surface water, wetlands, or groundwater quality.
Discuss the potential for blasting to affect water wells, springs, and
wetlands, and measures to be taken to detect and remedy such effects.
    (7) Identify the location of known public and private groundwater
supply wells or springs within 150 feet of proposed construction areas.
Identify locations of EPA or State-designated, sole-source aquifers and
wellhead protection areas crossed by the proposed transmission line
facilities.
    (e) Resource Report 3--Fish, wildlife, and vegetation. This report
must describe aquatic life, wildlife, and vegetation in the vicinity of
the proposed project; expected impacts on these resources including
potential effects on biodiversity; and proposed mitigation,
enhancement, or protection measures. Resource Report 3 must:
    (1) Describe commercial and recreational warmwater, coldwater, and
saltwater fisheries in the affected area and associated significant
habitats such as spawning or rearing areas and estuaries.
    (2) Describe terrestrial habitats, including wetlands, typical
wildlife habitats, and rare, unique, or otherwise significant habitats
that might be affected by the proposed action. Describe typical species
that have commercial, recreational, or aesthetic value.
    (3) Describe and provide the affected acreage of vegetation cover
types that would be affected, including unique ecosystems or
communities such as remnant prairie or old-growth forest, or
significant individual plants, such as old-growth specimen trees.
    (4) Describe the impact of construction and operation on aquatic
and terrestrial species and their habitats, including the possibility
of a major alteration to ecosystems or biodiversity, and any potential
impact on State-listed endangered or threatened species. Describe the
impact of maintenance, clearing and treatment of the project area on
fish, wildlife, and vegetation. Surveys may be required to determine
specific areas of significant habitats or communities of species of
special concern to State, Tribal, or local agencies.
    (5) Identify all Federally-listed or proposed threatened or
endangered species and critical habitat that potentially occur in the
vicinity of the project. Discuss the results of the consultation
requirements listed in Sec.  380.13(b) through Sec.  380.13(b)(5)(i)
and include any written correspondence that resulted from the
consultation. The initial application must include the results of any
required surveys unless seasonal considerations make this impractical.
If species surveys are impractical, there must be field surveys to
determine the presence of suitable habitat unless the entire project
area is suitable habitat.
    (6) Identify all Federally-listed essential fish habitat (EFH) that
potentially occurs in the vicinity of the project. Provide information
on all EFH, as identified by the pertinent Federal fishery management
plans, that may be adversely affected by the project and the results of
abbreviated consultations with NMFS, and any resulting EFH assessments.
    (7) Describe site-specific mitigation measures to minimize impacts
on fisheries, wildlife, and vegetation.
    (8) Include copies of correspondence not provided under paragraph
(e)(5) of this section, containing recommendations from appropriate
Federal and State fish and wildlife agencies to avoid or limit impact
on wildlife, fisheries, and vegetation, and the applicant's response to
the recommendations.
    (f) Resource Report 4--Cultural resources. In order to prepare this
report, the applicant must follow the principles in Sec.  380.14.
    (1) Resource Report 4 must contain:
    (i) Documentation of the applicant's initial cultural resources
consultations, including consultations with Native Americans and other
interested persons (if appropriate);

    (ii) Overview and Survey Reports, as appropriate;
    (iii) Evaluation Report, as appropriate;
    (iv) Treatment Plan, as appropriate; and
    (v) Written comments from State Historic Preservation Officer(s)
(SHPO), Tribal Historic Preservation Officers (THPO), as appropriate,
and applicable land-managing agencies on the reports in paragraphs
(f)(1)(i) through (iv) of this section.
    (2) The initial application or pre-filing documents, as applicable,
must include the documentation of initial cultural resource
consultation(s), the Overview and Survey Reports, if required, and
written comments from SHPOs, THPOs, and land-managing agencies, if
available. The initial cultural resources consultations should
establish the need for surveys. If surveys are deemed necessary by the
consultation with the SHPO/THPO, the survey reports must be filed with
the initial application or pre-filing documents.
    (i) If the comments of the SHPOs, THPOs, or land-management
agencies are not available at the time the application is filed, they
may be filed separately, but they must be filed before a permit is
issued.
    (ii) If landowners deny access to private property and certain
areas are not surveyed, the unsurveyed area must be identified by
mileposts, and supplemental surveys or evaluations must be conducted
after access is granted. In those circumstances, reports, and treatment
plans, if necessary, for those inaccessible lands may be filed after a
permit is issued.
    (3) The Evaluation Report and Treatment Plan, if required, for the
entire project must be filed before a permit is issued.
    (i) In preparing the Treatment Plan, the applicant must consult
with the Commission staff, the SHPO, and any applicable THPO and land-
management agencies.
    (ii) Authorization to implement the Treatment Plan will occur only
after the permit is issued.
    (4) Applicant must request privileged treatment for all material
filed with the Commission containing location, character, and ownership
information about cultural resources in accordance with Sec.  388.112
of this chapter. The cover and relevant pages or portions of the report
should be clearly labeled in bold lettering: ``CONTAINS PRIVILEGED
INFORMATION--DO NOT RELEASE.''
    (5) Except as specified in a final Commission order, or by the
Director of the Office of Energy Projects, construction may not begin
until all cultural resource reports and plans have been approved.
    (g) Resource Report 5--Socioeconomics. This report must identify
and quantify the impacts of constructing and operating the proposed
project on factors affecting towns and counties in the vicinity of the
project. Resource Report 5 must:
    (1) Describe the socioeconomic impact area.
    (2) Evaluate the impact of any substantial immigration of people on
governmental facilities and services and plans to reduce the impact on
the local infrastructure.
    (3) Describe on-site manpower requirements and payroll during
construction and operation, including the number of construction
personnel who currently reside within the impact area, will commute
daily to the site from outside the impact area, or will relocate
temporarily within the impact area.
    (4) Determine whether existing housing within the impact area is
sufficient to meet the needs of the additional population.
    (5) Describe the number and types of residences and businesses that
will be displaced by the project, procedures to be used to acquire
these properties, and types and amounts of relocation assistance
payments.
    (6) Conduct a fiscal impact analysis evaluating incremental local
government expenditures in relation to incremental local government
revenues that will result from construction of the project. Incremental
expenditures include, but are not limited to, school operating costs,
road maintenance and repair, public safety, and public utility costs.
    (h) Resource Report 6--Geological resources. This report must
describe geological resources and hazards in the project area that
might be directly or indirectly affected by the proposed action or that
could place the proposed facilities at risk, the potential effects of
those hazards on the facility, and methods proposed to reduce the
effects or risks. Resource Report 6 must:
    (1) Describe, by milepost, mineral resources that are currently or
potentially exploitable.
    (2) Describe, by milepost, existing and potential geological
hazards and areas of nonroutine geotechnical concern, such as high
seismicity areas, active faults, and areas susceptible to soil
liquefaction; planned, active, and abandoned mines; karst terrain; and
areas of potential ground failure, such as subsidence, slumping, and
landsliding. Discuss the hazards posed to the facility from each one.
    (3) Describe how the project will be located or designed to avoid
or minimize adverse effects to the resources or risk to itself,
including geotechnical investigations and monitoring that would be
conducted before, during, and after construction. Discuss also the
potential for blasting to affect structures, and the measures to be
taken to remedy such effects.
    (4) Specify methods to be used to prevent project-induced
contamination from surface mines or from mine tailings along the right-
of-way and whether the project would hinder mine reclamation or
expansion efforts.
    (i) Resource Report 7--Soils. This report must describe the soils
that will be affected by the proposed project, the effect on those
soils, and measures proposed to minimize or avoid impact. Resource
Report 7 must:
    (1) List, by milepost, the soil associations that would be crossed
and describe the erosion potential, fertility, and drainage
characteristics of each association.
    (2) Identify, by milepost, potential impact from: Soil erosion due
to water, wind, or loss of vegetation; soil compaction and damage to
soil structure resulting from movement of construction vehicles; wet
soils and soils with poor drainage that are especially prone to
structural damage; damage to drainage tile systems due to movement of
construction vehicles and trenching activities; and interference with
the operation of agricultural equipment due to the possibility of large
stones or blasted rock occurring on or near the surface as a result of
construction.
    (3) Identify, by milepost, cropland, and residential areas where
loss of soil fertility due to construction activity can occur. Indicate
which are classified as prime or unique farmland by the U.S. Department
of Agriculture, Natural Resources Conservation Service.
    (j) Resource Report 8--Land use, recreation, and aesthetics. This
report must describe the existing uses of land on, and (where
specified) within 0.25 mile of, the edge of the proposed transmission
line right-of-way and changes to those land uses that will occur if the
project is approved. The report must discuss proposed mitigation
measures, including protection and enhancement of existing land use.
Resource Report 8 must:
    (1) Describe the width and acreage requirements of all construction
and permanent rights-of-way required for project construction,
operation and maintenance.
    (i) List, by milepost, locations where the proposed right-of-way
would be

adjacent to existing rights-of-way of any kind.
    (ii) Identify, preferably by diagrams, existing rights-of-way that
will be used for a portion of the construction or operational right-of-
way, the overlap and how much additional width will be required.
    (iii) Identify the total amount of land to be purchased or leased
for each project facility, the amount of land that would be disturbed
for construction, operation, and maintenance of the facility, and the