Mr. Goocн. Yes sir. The order of December 4 sets out the procedures that the examiners will follow. Mr. MCCLOSKEY. Considering environmental impact? Mr. GooCH. Yes, sir. It is in the December 4 order. Mr. MCCLOSKEY. Thank you. Mr. EVERETT. That is all, Mr. Chairman. Mr. DINGELL. Mr. Nassikas, you have been most patient. We are grateful to you. The statements have been helpful. I believe your response to the act has been in the proper spirit, and I wish to commend you, not only for your able and careful responsive appearance here today, but also for the fashion in which you have responded previously, and I do wish to commend you and thank you on behalf of the committee. Mr. NASSIKAS. Thank you, Mr. Chairman. It has been a privilege to appear before your committee and meet with all you gentlemen today. I hope we can help you. Mr. DINGELL. You have been of help to the committee. We thank you very much. The subcommittee will stand adjourned until the hour of 2:30, at which time we will hear from Mr. William Ruckelshaus, Administrator of the Environmental Protection Agency. (Selected appendixes of Mr. Nassikas' statement follow :) APPENDIX A FEDERAL POWER COMMISSION, HON. RUSSELL E. TRAIN, Chairman, Council on Environmental Quality, Executive Office of the President, 1016 Sixteenth Street NW., Washington, D.C. DEAR MR. CHAIRMAN: This responds to your request of April 8, 1970, for a concise summary of major accomplishments in the environmental area on the part of the Federal Power Commission. We understand this request to relate to fiscal year 1970 up to the current date, and are so reporting. The Federal Power Commission's responsibilities in licensing certain power generation and transmission facilities as provided under the Federal Power Act and in the certification of natural gas pipelines under the Natural Gas Act have necessarily involved consideration of environmental factors over the years in arriving at decisions in the public interest. The scope of these matters and some of the events of prior years which led up to their present status are summarized in the publication attached to this letter entitled, "Federal Power Commission Interests in Environmental Concerns Affecting the Electric Power and Natural Gas Industries." Nevertheless, in keeping with the markedly increased interest at Federal, State and local levels in minimizing any adverse impacts on the environment from new energy supply facilities, the Federal Power Commission has initiated and completed a number of major actions bearing on significant environmental issues. The sections that follow summarize the items which we consider major environmental accomplishments since the beginning of this fiscal year: RULEMAKING ACTIVITIES (a) Order Number 383-2, Reliability and Adequacy of Electric ServiceReporting of Data-Participation of Regulatory Personnel in Regional Councils, issued April 10, 1970. This rulemaking provides for participation by Federal and State regulatory personnel in regional reliability councils to plan and promote reliable and adequate service. In addition, the major electric utilities are requested to plan their siting requirements ten years in advance (with annually updated reports) and to inform the FPC through the reliability councils of their plans together with related data on the environmental aspects of these sites. (b) Order Number 384, Takeover or Relicensing of Licensed Projects-New Application Requirements Relating to Federal Development, Electric Coordination, Water Quality, Historical and Archeological Properties-Procedural Changes, issued July 17, 1969. (c) R-360, Selection, Clearing and Maintenance of Rights-of-Way Routes and Construction and Maintenance of Above Ground Facilities by Natural Gas Companies, issued June 6, 1969. (d) R-365, Protection and Enhancement of Natural, Historic and Scenic Values in the Design, Location, Construction and Operation of Project Works, issued July 29, 1969. (e) R-382, Collection of Steam-Electric Generating Plant Pollution Control Data, FPC Form No. 67, issued January 29, 1970. (f) R-381, Accounting Treatment for Expenditures for Research and Development, issued January 27, 1970. The latter four rulemaking items have all received extensive comment from industry and public sources and are in varying stages of readiness for presentation to the Commission for final action. Certainly some of them can be expected to be ordered in final form before the end of this fiscal year. REPORT PREPARATION In addition to the general survey report on environmental concerns referred to above, the staff of the Commission during the past year prepared and released a study entitled, "Problems in Disposal of Waste Heat from Steam-Electric Plants." The staff is also involved in the major task of preparing the Commission's 1970 National Power Survey which will embrace the foregoing subject plus many other significant aspects of the relationship between the power industry and environmental issues of the day. To assist the Commission in the preparation of this survey report, a special Task Force on Environment was appointed by the Commission on January 28, 1970. This group, representing diverse talents and distinguished experience in broad aspects of the environmental field, has already contributed significantly to the Commission's preparatory work on the report and will be of invaluable aid in making this report of national significance. A list of the Task Force members is attached hereto. The Federal Power Commission is also actively involved through its Chairman as a member of the Power Plant Siting Task Force under the chairmanship of Mr. S. David Freeman, head of the Energy Policy Staff of the Office of Science and Technology. The Task Force is well advanced in the drafting of a report to supplement the 1968 report on "Considerations Affecting Steam Power Plant Site Selection." It is expected that this report with its assessment of the current relationship among the major elements of the environmental problem will provide a thoughtful basis for considering any future legislative needs to deal with power plant siting problems. LICENSING CASES It is recognized, of course, that some of the significant events with respect to environmental matters result from licensing cases of a "landmark" character reviewed and disposed of by the Commission. As of this date, one cannot report instances of such cases that have actually been brought to full completion by the Commission in this fiscal year. Nevertheless, it may be of interest to refer to the following: (a) Project Number 2485 of Connecticut Light & Power Company, the Hartford Electric Company, the Western Massachusetts Electric Company is a 1,000 MW pumped-storage development which received an approving license from the Federal Power Commission in 1968, with a resulting legal appeal being disposed of by court decision on July 30, 1969. This project, at Northfield Mountain, is now 45% complete, with the initial power delivery to take place in December 1971. We look upon this as a complex case with respect to the size and environmental conditions involved and which has been carried forward in a sucessful manner. (b) Other cases involving aesthetic and environmental requirements were authorized by licenses issued in 1969 as follows: (1) Project Number 2685, Blenheim-Gilboa, a 1.000 MW pumped-storage development being constructed by the Power Authority of the State of New York. (2) Project Number 2680, Ludington, with 1,872-MW, a pumped-storage development being constructed by Consumers Power Company and Detroit Edison Company. Two other major cases involving environmental considerations are the Cornwall and the Blue Ridge license applications which are pending before the Commission. OTHER ACTIVITIES (a) On December 29, 1969, the Commission announced the establishment of the Office of the Advisor on Environmental Quality, and the office was filled on January 5, 1970, by the appointment of Mr. Frederick H. Warren. (b) On November 13, 1969, in my statement before the Subcommittee on Minerals, Materials and Fuels of the Senate Committee on Interior and Insular Affairs, I proposed that a National Gas Survey comparable to the National Power Survey of the electric industry is essential to improve information on and management of natural gas resources, which can make an important contribution to the environmental aspects of energy supply to the country. (c) On January 30, 1970, before the Subcommittee on Energy, Natural Resources and the Environment of the Committee on Commerce of the United States Senate, I recommended that the Congress establish a National Energy Resources Council to conduct a national energy survey which would make an assessment of potential long-term supplies of natural fuel resources and propose policies and guidelines for rational development and allocation of energy supplies to various uses. I trust this summary is appropriate for your report on major accomplishments in the environmental area, but would be glad to supplement or discuss this further if you wish. Yours sincerely, APPENDIX B JOHN N. NASSIKAS, Chairman. Hon. RUSSELL E. TRAIN, FEDERAL POWER COMMISSION, Chairman, Council on Environmental Quality, Executive Office of the President, Washington, D.C. DEAR MR. CHAIRMAN: In compliance with § 2(f) of Executive Order 11514, § 3(a) of the Interim Guidelines issued April 30, 1970 (35 F.R. 7390), and pursuant to § 102(2)(C) of the National Environmental Policy Act (Act) (83 Stat. 852), this letter outlines the Commission's plans for implementing the Act. Initially, the Commission will follow those procedures which it can effectuate without formal rulemaking under the Administrative Procedure Act, 5 U.S.C. 551 et seq. As will appear hereinafter, the Commission does contemplate the need for certain rulemaking procedures to complete the general administration of its principal statutory responsibilities in light of the National Environmental Policy Act. The Federal Power Commission is a regulatory agency It does not own or operate any utility facilities, but does regulate the facilities of others which do affect the environment. These regulatory powers are delegated by the Congress and bottomed principally on the commerce clause and the property clause of the United States Constitution. Principal areas regulated by the Commission with possible environmental overtones are non-Federal hydroelectric projects, nongovernmental interstate electric utilities,' and economic (but not safety) regulation of interstate natural gas pipelines and independent natural gas producers.' Under Part I of the Federal Power Act passed in 1920 the Commission issues and administers preliminary permits and licenses for the planning. construction, and operation of non-Federal hydroelectric projects on waters or lands subject to Federal jurisdiction. In exercising this responsibility, the Commission requires the conservation and development of land and water-associated natural resources at project sites, including water power, fish and wildlife, recreation, and other beneficial public uses. The statutory standard for licensing is the concept of a comprehensive plan for improving or developing a waterway or waterways. Adoption of Parts II and III of the Federal Power Act in 1935 extended the Commission's jurisdiction to, among other things, the regulation of securities, 1 Federal Power Act. 16 T.S.C. 792 et seq. Natural Gas Act, 15 U.S.C. 717 et seq. mergers, rates, accounts, and services of public utilities, i.e., non-governmental systems which transmit or sell electricity in interstate commerce at wholesale. The Commission regulates exportations of electric energy from the United States to Canada and Mexico. The Commission generally has no jurisdiction over retail electric service or over the facilities used solely for such service. These are subject to regulation under pertinent state and local law. A major responsibility of the Commission in the area of adequacy and reliability of electric power supply is reflected in 8 202 of Part II of the Federal Power Act (16 U.S.C. 824a). That section directs the Commission to promote and encourage the voluntary interconnection and coordination of all electric systems throughout the United States to assure an abundant supply of energy with the greatest possible economy and with regard for the proper utilization and conservation of our natural resources. The protection of the environment is an important element in the development of adequate and reliable electric power. The protection of the environment and the needs of the electric consumer are both essential matters within the public interest. They must be balanced. Inadequate electric supply can disable modern services important to the individual citizen and the community and inhibit vital industrial process improvements or other measures having positive environmental benefits. We are concerned, therefore, that the adoption and enactment of environmental standards and criteria recognize the importance and benefits of bulk power supplies as well as their environmental problems. Recognizing this, the Commission has responded to these considerations in a number of ways as set forth hereafter. The Commission's Statement of Policy on Reliability and Adequacy of Electric Service issued April 10, 1970, 35 F.R. 6121, is a matter of major significance. Through it the Commission has recognized the electric needs of the consumer in the context of the total electric industry. There are nine regional reliability councils covering the forty-eight states. The Commission has set up a cooperative reporting procedure and made environmental concerns a specific matter to be reported. Appendix A to that Statement provides for reporting a number of things including plans for fueling and emissions of fossil-fired generating plants of 300 MW or more, and the status of consultations with local, state or Federal authorities on such plants, and with similar authorities and local communities and groups, on transmission line segments of 230 KV (nominal) capacity or higher. The Natural Gas Act of 1938 conferred upon the Commission broad responsibilities with respect to the interstate natural gas pipeline industry. One of the major activities that comes within the Commission's jurisdiction under the Natural Gas Act is the issuance of certificates authorizing natural gas pipelines to construct, extend, acquire or operate transportation and storage facilities for the transportation of natural gas in interstate commerce and for the sale of natural gas in interstate commerce for resale. Among the other primary responsibilities of the Commission under the Natural Gas Act are the regulation of rates and services for natural gas transported or sold in interstate commerce and the authorization of the importation and exportation of natural gas and the issuance of Presidential Permits (Executive Order 10485) authorizing the construction and operation of natural gas facilities or electric power facilities at international borders. Safety aspects of the interstate pipeline transportation of natural gas are primarily within the jurisdiction of the Department of Transportation by virtue of the Natural Gas Pipeline Safety Act of 1968 (82 Stat. 720). Section 102(2) (C) of the Act specifies that all Federal agencies shall include in "every recommendation or report on proposals for legislation" a detailed statement of environmental significance and impact. This requirement was clarified in your Interim Guideline # 6 wherein it is stated that § 102(2)(C) procedures apply to an agency's own legislative proposals and proposals initiated outside an agency and conferring on the agency primary responsibility for the subject matter involved. The Act indicates that § 102(2) (C) detailed statement requirements only pertain to legislation "significantly affecting the quality of the human environment." In furtherance of this requirement of the Act, the Commission has directed its staff to review pending legislation of environmental significance which has been submitted to the Commission for comment since January 1, 1970 in order to determine if the Commission has been designated as lead agency. This review has revealed only one bill, H.R. 16072, that is environmentally significant and gives this Commission responsibility for implementing its provisions We will, therefore, prepare and submit a detailed environmental statement on this proposal. Our current legislative proposals of the Commission before the Congress do not include any recommendations having environmental significance within the context of the Act as we interpret it. In the near future, the Commission anticipates that will advance a legislative proposal dealing with electric power plant siting and transmission rights-of-way. This proposal is being prepared and reviewed in connection with the extensive work and study by the Interagency Power Plant Siting Task Force, coordinated by the President's Office of Science and Technology. As Chairman of this Commission, I participate in the work of that group. I have formulated a general legislative approach which has been discussed with members of the Task Force. It will, among other things, recognize the Commission's work in reliability and adequacy of service as outlined above. Pending adoption of modifications of our rules and regulations to prescribe § 102(2) (C) procedures, the staff, at the Commission's direction, will screen all bills referred to us for comment and identify those, if any, that fall within the purview of the Act and your interim guidelines. Notice of such proposals will be referred to the Council and other appropriate agencies of government, both at the Federal and State level. Evaluation, in light of the environmental factors specified in § 102(2) (C) (1)–(v) of the Act, will be requested from all concerned agencies. The notice given to such agencies shall request that ten copies of any comments be furnished to the Council at the same time they are filed with the Commission. All comments received will be available to the general public through the Commission's Office of Public Information. The reports the Commission submits on legislative proposals covered by the Act will include a detailed statement of the environmental factors and considerations specified in § 102(2) (C). This statement will reflect full consideration of all views submitted, including comments of all other interested agencies as well as Commission staff analysis. These reports will be supplied to the Council and made available to the general public. Until the Commission has had an opportunity to conduct formal rulemaking procedures to amend its published rules and regulations, the staff will, at our direction, implement liaison procedures to comply with the Act "to the fullest extent possible" in processing applications under Part I of the Federal Power Act and the pipeline certifying jurisdiction of the Natural Gas Act. The staff is now in the process of identifying those pending applications under the Federal Power Act and Natural Gas Act that constitute major actions of environmental significance and are in a posture to be analyzed in conformity with the Act. To the fullest extent posible all such applications will be processed so as to evaluate the environmental data necessary to render § 102 (2) (C) detailed statements. All pertinent applications hereafter filed prior to the adoption of new formal Commission rules will be handled in like manner. The Council and other appropriate government agencies will be specifically notified of all current and new applications that are within the purview of the Act. It is the Commission's intent that these interim procedures will be replaced by new formal procedures as promptly as possible, recognizing the requirements of the Administrative Procedure Act, other considerations of fairness and legality, and the sound administration of the Federal Power and Natural Gas Acts. In the interim, current Commission procedures and proposals assure that environmental factors are given consideration in many of our jurisdictional activities. For example, as we indicated in our letter to the Council on April 16, 1970, in response to a request for a summary of our environmental concerns and accomplishments, the Commission is actively considering several proposed rulemakings which involve environmental considerations. In addition to proposals concerning the collection of fuel use and pollution data, the accounting treatment of R&D expenses, and utility long-range land acquisition policies, we have under consideration Docket Number R-360, Selection, Clearing and Maintenance of Rightsof-Way Routes and Construction and Maintenance of Aboveground Facilities by Natural Gas Companies, 34 F.R. 9348, issued June 6, 1969, and Docket Number R-365, Protection and Enhancement of Natural, Historic and Scenic Values in the Design, Location, Construction and Operation of [Hydroelectric] Project Works, 34 F.R. 12718, issued July 29, 1969. Furthermore, our extensive experience in implementing Part I of the Federal Power Act, particularly § 10(a) which requires that a Commission order authorizing a hydroelectric project “be best adapted to a comprehensive plan for improving or developing a water way * * *" already guarantees extensive comments and consultation with affected Federal and State agencies, including the Department of the Interior, the Corps of Engineers, and the Department of Agriculture. The expert comments from these affected agencies and our own staff's analysis allow |