On March 21, 2017, the Wyoming Pipeline Authority (“WPA”) withdrew its request for rehearing of the delegation order that FERC issued on February 3, 2017 (“Delegation Order”) in anticipation of the Commission’s loss of quorum following the departure of former Chairman Norman Bay.  The Delegation Order allows FERC staff to

According to various reports, President Donald Trump plans to appoint Kevin McIntyre as FERC Chairman, and Neil Chatterjee and Rob Powelson as FERC Commissioners, to fill the three vacant Commissioner seats at FERC. All three potential appointees are Republicans, whereas the current Commissioners—Acting Chairman Cheryl LaFleur and Commissioner Collette Honorable—are Democrats.

On March 6, 2017 the Wyoming Pipeline Authority (“WPA”) requested rehearing of FERC’s February 3, 2017 Delegation Order (“Delegation Order”).  In the filing, the WPA asserted that the Delegation Order exceeds FERC’s statutory authority because it purports to authorize agency staff members to take action that would not be possible for FERC itself to take due to the current lack of quorum.  This deficiency, WPA argued, can only be cured through the appointment of new Commissioners.

On February 24, 2017, President Donald Trump issued a Presidential Executive Order on Enforcing the Regulatory Reform Agenda (“Executive Order”) which requires the heads of agencies to designate an agency official as the “Regulatory Reform Officer” within 60 days, and establish “Regulatory Reform Task Forces.” The objective of each Regulatory Reform Task Force will be to “evaluate existing regulations and make recommendations to the agency head regarding their repeal, replacement, or modification, consistent with applicable law.”

Since Commissioner Norman Bay’s departure from FERC on February 3, 2017 created the absence of the requisite three-Commissioner quorum necessary for the Commission to vote (see January 31, 2017 edition of the WER), FERC Staff has continued to act on certain pending matters under the authority delegated to it by the Commission on February 3, 2017 (see February 3, 2017 Troutman Sanders Alert).

On January 20, 2017, President Donald Trump asked the heads of executive departments and agencies temporarily to refrain from sending regulations to the Office of the Federal Register (“OFR”), withdraw regulations that have been sent to the OFR but have not yet published in the Federal Register, and postpone certain regulations that have been published in the Federal Register but have not taken effect.  In addition, on January 30, 2017, President Trump ordered executive departments and agencies to identify at least two existing regulations to be repealed for every new regulation proposed for notice and comment or otherwise promulgated (“January 30 Executive Order”).  In a guidance memorandum released February 2, 2017, the Office of Management and Budget (“OMB”) clarified, among other things, that the January 30 Executive Order does not apply to independent agencies such as FERC.

On February 1, 2017 FERC issued an order approving a settlement between its Office of Enforcement (“Enforcement”) and Houston-based power marketer GDF SUEZ Energy Marketing NA, Inc. (“GSEMNA”) following an investigation into whether GSEMNA violated FERC’s anti-manipulation regulations from May 2011 to September 2013. As part of the agreement, GSEMNA neither admitted to nor denied the alleged market manipulation violations, but agreed to be subject to monitoring and annual compliance reporting as well as to pay a disgorgement of $40.8 million in unjust profits and a civil penalty of $41 million to the U.S. Treasury.

On January 24, 2017, President Donald Trump issued an Executive Order and two Presidential Memoranda directing relevant federal agencies to take expedited review and approval action on various infrastructure projects, including the Keystone XL and Dakota Access pipeline projects. Additionally, President Trump issued a Presidential Memorandum directing relevant federal agencies to develop a plan under which all new U.S. pipeline projects will use domestically sourced materials and equipment.