apartment buildings and other multiunit residential buildings. (9) School-means a facility, the primary function of which is to deliver instruction to regularly enrolled students in attendance at such facility. Facilities used for both educational and non-educational activities are not included under this definition unless the latter are merely incidental to the delivery of instruction. § 580.03 Curtailment priorities. (a) Notwithstanding any provision of law other than section 401(b) of the Natural Gas Policy Act of 1978, or any other rule, regulation, or order of the Department of Energy, the Federal Energy Regulatory Commission or their predecessor agencies, and to the maximum extent practicable, no curtailment plan of an interstate pipeline may provide for curtailment of deliveries of natural gas for any essential agricultural use, unless: (1) Such curtailment does not reduce the quantity of natural gas delivered for such use below the use requirement certified by the Secretary of Agriculture under section 401(c) of the Natural Gas Policy Act of 1978 in order to meet the requirements of full food and fiber production; or (2) Such curtailment is necessary in order to meet the requirements of high-priority users; or (3) The Federal Energy Regulatory Commission, in consultation with the Secretary of Agriculture, determines, by rule or order issued pursuant to section 401(b) of the Natural Gas Policy Act of 1978, that use of a fuel (other than natural gas) is economically practicable and that the fuel is reasonably available as an alternative for such essential agricultural use. (b) Any essential agricultural user who also qualifies as a high-priority user shall be a high-priority user for purposes of paragraph (a) of this section. (c) The specific relative order of priority for all uses and users of natural gas, including high-priority and essential agricultural uses and users, shall remain as reflected in effective curtailment plans of interstate pipelines filed with the Federal Energy Regulatory Commission to the extent that the rel ative order of priorities does not conflict with paragraph (a) of this section. (d) Nothing in this rule shall prohibit the injection of natural gas into storage by interstate pipelines or deliveries to its customers for their injection into storage unless it is demonstrated to the Federal Energy Regulatory Commission that these injections or deliveries are not reasonably necessary to meet the requirements of highpriority users or essential agricultural uses. § 580.04 Administrative procedures. [Reserved] PART 595-CERTIFICATION OF USE OF NATURAL GAS TO DISPLACE FUEL OIL Sec. 595.1 Purpose and scope. 595.2 595.3 Definitions. Eligibility for certification. 595.4 Certification of eligible use. 595.5 Limitations of applicability. 595.6 Application for certification and recertification. 595.7 Reporting requirements. 595.8 Termination of eligibility. 595.9 Request for reconsideration. AUTHORITY: Secs. 102 (3) and (8), 501(e), 644, Pub. L. 95-91, 91 Stat. 567, 568, 588, 599; 42 U.S.C. 7112(3), (8), 7191(e), 7254; E.O. 12009, 42 FR 46267. SOURCE: 44 FR 47922, Aug. 16, 1979, unless otherwise noted. § 595.1 Purpose and scope. The extensive reliance of the United States on imported crude oil and petroleum products has severe detrimental effects on the security of our energy supplies, balance of payments, and economic well-being. The national interest requires that every practical step be taken to restrain imports quickly. In addition, because of the current shortage of middle distillates as a result of crude oil shortfalls, it is necessary to restrain consumption of that fuel oil in order to rebuild stocks for next winter's heating season. The use of natural gas is one vehicle for displacing fuel oils. The regulations in this part will facilitate oil displacement by establishing a procedure whereby the Administrator may certify to the FERC that use of natural For the purpose of this part: "Administrator” means the Administrator of ERA or his or her delegate. "End-user" means any person, including a subsidiary or affiliated entity of that person, who purchases natural gas for consumption in that person's facilities and not for resale. "Eligible seller" means any willing seller of natural gas. "Eligible use” means that use of natural gas certified by the Administrator pursuant to § 595.4. "ERA" means the Economic Regulatory Administration of the Department of Energy. "FERC" means the Federal Energy Regulatory Commission. "Fuel oil" means middle distillates or residual fuel oils including #1 and #2 heating oils, kerosene-base jet fuel, #4, #5, and #6 fuel oils; crude oil burned directly as a fuel; and blends of any of the above. § 595.3 Eligibility for certification. Any end-user who has purchased or is in the process of contracting to purchase natural gas directly from an eligible seller to displace fuel oil may apply for certification under this part if: (1) The natural gas will be used only to displace fuel oil which would otherwise be consumed in the enduser's facilities and not coal; (2) the displaced fuel oil will not be used to displace coal in any of the end-user's facilities; (3) the natural gas to be certified will be transported by an interstate pipeline company; and (4) the authorization for the transportation of the natural gas to be certified derives from the procedures in 18 CFR Part 284, Subpart F or any other FERC rule or order requiring ERA certification pursuant to this part. § 595.4 Certification of eligible use. The Administrator may certify that a purchase or proposed purchase of natural gas is for an eligible use if the end-user demonstrates, upon proper application that: (1) The natural gas will be used to displace fuel oil which would otherwise be consumed in the end-user's facilities during the term of the certification, (2) the natural gas will not be used by the end-user to displace coal in its facilities, and (3) the fuel oil displaced will not be used by the end-user to displace coal in its facilities. The initial certification will be effective for up to one year, unless the FERC authorizing procedures for the transportation of the certified gas require a shorter period of time. The Administrator also may issue a recertification, upon proper application within 60 days prior to the expiration of the initial certification or a previous recertification, which will be effective for up to one year, unless the FERC authorizing procedures for the transportation of the certified gas require a shorter period of time. § 595.5 Limitations of applicability. The Administrator may determine to limit applicability of the regulations of this part to certain end-users or specific geographic areas when such limitation is in the public interest. In making a determination whether to establish any limitations, the Administrator may consider, among other criteria, the impact of certification or recertification on air quality, on regional or local energy supply, on refinery output and regional availability of petroleum products in light of refinery capabilities, on facilitating and advancing coal conversion programs, and on system supplies of natural gas. § 595.6 Application for certification and recertification. (a) An end-user may apply for certification or recertification of an eligible use by filing a written application which must contain the following information: (1) The company name, mailing address, and telephone number of the end-user, and the name of a person to contact regarding the application; 1 है (2) The name and location of each facility to which the natural gas will be delivered and the volumes of natural gas to be received by each; (3) An affidavit, signed by a responsible official representing the end-user which states: (i) An estimate of the volumes, type, and sulfur content of the fuel oil which will be displaced by the natural gas at each of the end-user's facilities; (ii) That any natural gas certified by the Administrator will be used by the end-user only to displace fuel oil and not to displace coal; and (iii) That the end-user will not use the displaced fuel oil to displace coal in any of its facilities; (4) The names and addresses of the eligible sellers with whom the enduser has entered into gas purchase and the interstate pipeline and local distribution companies with which the enduser has entered into transportation contracts or with whom the end-user is negotiating those contracts; (5) A statement as to whether the applicant expects any transportation of the natural gas pursuant to 18 CFR Part 284, Subpart F, to be either selfimplementing or to require a FERC transportation certificate of public convenience and necessity or whether the transportation of the oil displacement gas is authorized by another FERC rule or order; (6) The FERC docket number and the date of filing of any application for a transportation certificate which has been filed with the FERC regarding this oil displacement gas; (b) The Administrator may request any additional information he deems necessary. (c) The applicant must notify ERA in writing if any of the above information is later determined to be incorrect or changed. (d) An original and fifteen copies of the application should be submitted to: Office of Petroleum Operations, Economic Regulatory Administration, Room 4126, 2000 M Street, NW., Washington, D.C. 20461. (e) Notice of receipt of valid applications for certification or recertification will be published in the FEDERAL REGISTER within a reasonable time. An op portunity for public comment will be permitted for ten (10) calendar days from the date of publication, including an opportunity to request an oral presentation. After close of the comment period, the Administrator will review the application and any comments and make a decision whether or not to issue a certification or recertification. Such decision will be published in the FEDERAL REGISTER, and sent to the FERC, the applicant, and any person filing comments. The Administrator may certify an eligible use prior to the close of the comment period, if the need for certification is demonstrated to be of sufficient public interest to warrant expedited treatment. § 595.7 Reporting requirements. Each end-user receiving an ERA certification or recertification shall submit a statement to ERA by the fifteenth day of each month after the first month during the term of the certification or recertification, which provides the following information for the preceding month: (a) The total volume of natural gas obtained and used at each facility pursuant to the ERA certification to displace fuel oil; (b) The total volume(s) and type(s) (including sulfur content) of fuel oil displaced at each facility by natural gas obtained pursuant to the ERA certification. Monthly statements should contain the ERA certification docket number. Statements should be mailed to: Office of Petroleum Operations, Economic Regulatory Administration, Room 4126, 2000 M Street, NW., Washington, D.C. 20461. § 595.8 Termination of eligibility. The Administrator may terminate a certification or recertification of an eligible use whenever the Administrator determines, after notice and opportunity to be heard, that: (1) The natural gas is no longer being used for an eligible use as defined in § 595.02, or (2) termination is in the public interest. Upon making the determination to terminate a certification or recertification, the Administrator will notify FERC immediately and request that FERC take appropriate action to terminate any related transportation authorization. § 595.9 Request for reconsideration. (a) Any applicant whose application for certification or recertification has been denied, or whose certification or recertification has been terminated, may request reconsideration within 30 days of the date of the denial or termination. The request should contain a statement of facts and reasons supporting reconsideration and should be submitted in writing to: Office of Petroleum Operations, Economic Regulatory Administration, Room 4126, 2000 M Street, NW., Washington, D.C. 20461. (b) If the Administrator fails to take action on the request for reconsideration within 30 days, the request is deemed denied. (c) An applicant has not exhausted his administrative remedies until a request for reconsideration has been filed and acted upon or deemed denied. |