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OMB Control No: 1902-0302	ICR Reference No: 201806-1902-003
Status: Historical Active	Previous ICR Reference No: 201803-1902-003
Agency/Subagency: FERC	Agency Tracking No: FERC-501G
Title: FERC-501G, (Final Rule in RM18-11) Rate Changes Relating to Federal Corporate Income Tax Rate for Interstate Natural Gas Pipelines
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR: No
Type of Review Request: Regular
OIRA Conclusion Action: Approved with change	Conclusion Date: 09/12/2018
	Date Received in OIRA: 07/30/2018
Terms of Clearance: In accordance with 5 CFR 1320, the information collection is approved for three years.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	09/30/2021	36 Months From Approved
Responses	222	0	0
Time Burden (Hours)	2,433	0	0
Cost Burden (Dollars)	0	0	0

Abstract: The Tax Cuts and Jobs Act of 2017 reduced tax levels applicable to corporate and individual income, effective January 1, 2018. Pipelines subject to cost of service regulation pursuant to Section 4 of the Natural Gas Act (NGA) and Section 311 of the Natural Gas Policy Act (NGPA) are permitted to include projected income taxes as part of the cost of service, and are permitted the opportunity to recover those costs through their rates. Pipelines are not required to reduce their rates to reflect reduced income taxes. Proposed FERC-501G is required to implement the statutory provisions governed by Section 4 of the NGA and Section 311 of the NGPA that the pipelines’ currently effective rates remain just and reasonable (NGA) or fair and equitable (NGPA).

Authorizing Statute(s): US Code: 15 USC 15B (717c et. al.) Name of Law: Natural Gas Act (NGA)
   PL: Pub.L. 115 - 97 13001 Name of Law: Tax Cuts and Jobs Act of 2017
   US Code: 15 USC 3371(c) Name of Law: Natural Gas Policy Act of 1978 (NGPA)

Citations for New Statutory Requirements: PL: Pub.L. 115 - 97 13001 Name of Law: Tax Cuts and Jobs Act of 2017

Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
1902-AF50	Final or interim final rulemaking	83 FR 36672	07/30/2018

Federal Register Notices & Comments
Did the Agency receive public comments on this ICR? No

ICR Summary of Burden

	Total Approved	Change Due to New Statute
Annual Number of Responses	222	222
Annual Time Burden (Hours)	2,433	2,433
Annual Cost Burden (Dollars)	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The Tax Cuts and Jobs Act of 2017 reduced tax levels applicable to corporate and individual income, effective January 1, 2018. Pipelines subject to cost of service regulation pursuant to Section 4 of the Natural Gas Act (NGA) and Section 311 of the Natural Gas Policy Act (NGPA) are permitted to include projected income taxes as part of the cost of service, and are permitted the opportunity to recover those costs through their rates. Pipelines are not required to reduce their rates to reflect reduced income taxes unless and until the Commission finds that a particular pipeline is over-recovering. FERC-501-G is required to implement the statutory provisions governed by Section 4 of the NGA and Section 311 of the NGPA that the pipelines’ currently effective rates remain just and reasonable (NGA) or fair and equitable (NGPA). Contemporaneous with the proposed rule, the Commission responded to a remand from the D.C. Circuit. In United Airlines, the D.C. Circuit held that the Commission failed to demonstrate that allowing SFPP, L.P., a master limited partnership (MLP) owned pipeline, to recover both an income tax allowance and the discounted cash flow methodology rate of return does not result in a double recovery of investors’ tax costs. In response to that remand order, the Commission issued a Revised Policy Statement and Opinion No. 511-C, wherein the Commission found that permitting an income tax allowance for pass-through entities may no longer be appropriate. FERC Form No. 501-G proposed to collect information as to whether the pipeline was a pass-through entity.

Annual Cost to Federal Government: $416,981

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination. No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination. No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

Agency Contact: Keith Pierce 2025028525 keith.pierce@ferc.gov

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