National Energy Security Act of 1991

11 (a) DEFINITIONS.-For the purposes of this section the

12 term

(1) "Commission" means the Federal Energy

Regulatory Commission;

(2) "transportation service" means the transportation in interstate commerce of natural gas by a natural-gas company for itself or any other person;

(3) "rate schedule" means a statement of a rate or charge for a particular classification of transportation in interstate commerce of natural gas, and all terms, conditions, classifications, practices, rules and regulations affecting such rate or charge.

(4) "rate" means a rate or charge demanded or received for a particular classification of transportation in interstate commerce of natural gas, and all terms,

(1) CONSTRUCTION.-For the purposes of section

7 of the Natural Gas Act, a certificate of public convenience and necessity is not required for the construction of a facility to provide transportation service: Provided, That the construction of such facility commences after the date of enactment of the National Energy Security Act of 1991.

(2) OPERATION.-Upon the initiation of transportation service rendered by a facility constructed pursuant to paragraph (1), the Commission, pursuant to its authority under section 7 of the Natural Gas Act, shall immediately issue a certificate of public convenience and necessity for such transportation service. The natural-gas company shall accept the certificate. The certificate shall include such reasonable terms and condi

tions as the public convenience and necessity may require.

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(i) Prior to initiating transportation service utilizing a facility constructed pursuant to para

graph (b)(1), the natural-gas company shall file with the Commission the rate schedule for such

facility.

(ii) The natural-gas company shall keep in convenient form and place and make open for public inspection the rate schedule for such facili

ty.

(iii) An agreement between the natural-gas company and a person, including itself, who contracts for transportation service to be rendered

utilizing such facility, may constitute a rate sched

ule: Provided, That such agreement is inclusive of

all data and information required to be set forth in

a rate schedule.

(iv) The rate for a facility constructed pursuant to paragraph (b)(1) shall be established on a stand-alone and incremental basis.

(2) Books, ACCOUNTS AND RECORDS.-A natu

ral-gas company that constructs a facility pursuant to paragraph (b)(1) shall maintain a separate system of books, accounts and records for such facility.

(3) RATE REVISIONS.—

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(i) Upon its own motion or upon a complaint by any person, the Commission shall review the

rate for a facility constructed pursuant to para

graph (b)(1) to ascertain whether there is a reasonable basis to conclude that such rate may be unjust, unreasonable, unduly discriminatory or

preferential within the meaning of the Natural Gas Act.

(ii) If, as a result of such review, the Commission determines that there is a reasonable basis to conclude that such rate may be unjust, unreasonable, unduly discriminatory or preferential, pursuant to its authority under section 5 of the Natural Gas Act the Commission shall initiate a

proceeding to determine if the rate is unjust, un

reasonable, unduly discriminatory or preferential within the meaning of the Natural Gas Act.

(iii) If, as a result of the proceeding initiated under section 5 of the Natural Gas Act, the Commission finds that such rate is unjust, unreasonable, unduly discriminatory or preferential within the meaning of the Natural Gas Act, pursuant to its authority under section 5 of the Natural Gas Act the Commission shall determine the just and

reasonable rate, charge, classification rule, regula

S 341 IS

151

tion, practice, or contract to be thereafter ob

served and in force, and shall fix the same by order.

(d) RATE BASE TREATMENT.-A natural-gas company 5 may not, for ten years subsequent to the date on which a 6 facility constructed pursuant to paragraph (b)(1) was placed 7 into service, allocate the costs incurred for the construction, 8 operation or maintenance of such facility to any other service 9 rendered by such company.

10 (e) OTHER LAWS.-Except as expressly provided in 11 this section, facilities constructed under authority of para12 graph (b)(1) shall be subject to all applicable federal and state 13 laws.

14 SEC. 10002. TRANSPORTATION OF NATURAL GAS UNDER THE

NGPA.

Section 311 of the Natural Gas Policy Act of 1978 (15

17 U.S.C. 3371) is amended by

(a) striking "AUTHORIZATION OF CERTAIN SALES AND TRANSPORTATION" and inserting in

"AUTHORIZATION OF CERTAIN

TRANSPORTATION AND CONSTRUC

lieu thereof

(b) striking "Commission Approval of Transportation" and inserting in lieu thereof "Commission Ap

proval of Transportation and Construction"; and by

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