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Natural Gas Act of 1938

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The Natural Gas Act of 1938 was the first occurrence of the United States federal government regulating the natural gas industry. It was focused on regulating the rates charged by interstate natural gas transmission companies. In the years prior to the passage of the Act, concern arose about the monopolistic tendencies of the transmission companies and the fact that they were charging higher than competitive prices. The passage of the Act gave the Federal Power Commission (FPC) control over the regulation of interstate natural gas sales. Later on, the FPC was dissolved and became the Federal Energy Regulatory Commission (FERC) pursuant to a different act. FERC continues to regulate the natural gas industry to this day.

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107-400: Regulation in the natural gas market has been in place since the very beginnings of the industry. Originally in the mid-1800s, natural gas was manufactured out of coal , and delivered locally in the same area in which it was produced. Local governments saw the monopolistic tendencies of the market and began to enforce regulations. It was decided that there would be one distribution network but

214-512: A cyclothem . Cyclothems are thought to have their origin in glacial cycles that produced fluctuations in sea level , which alternately exposed and then flooded large areas of continental shelf. The woody tissue of plants is composed mainly of cellulose, hemicellulose, and lignin. Modern peat is mostly lignin, with a content of cellulose and hemicellulose ranging from 5% to 40%. Various other organic compounds, such as waxes and nitrogen- and sulfur-containing compounds, are also present. Lignin has

321-477: A "certificate of public convenience and necessity" from the Federal Power Commission before they could make an interstate sale of natural gas. These certificates set the maximum prices natural gas could be sold for. This meant that if gas flowed from one state to another where it was sold to a gas distribution company, the sale by the pipeline to the distributor would need a certificate. However,

428-606: A consistent energy policy. To resolve this, in 1928 Congress voted the give the FPC enough funds to hire their own staff. In 1930, the Federal Power Act established a bipartisan commission to run the FPC. In 1938, the Natural Gas Act gave the FPC jurisdiction over interstate natural gas pipelines and wholesale sales. In 1942, this jurisdiction was expanded to cover the licensing of more natural gas facilities. In 1954,

535-475: A default cost-sharing plan to deliver to state regulators. It "provides for cost-effective expansion of transmission that is being replaced, when needed, known as 'right-sizing' transmission facilities", and it allows states more opportunities to cooperate with utility companies and energy project developers, while preventing states that benefit from regional transmission projects from not paying for them. FERC Order No. 1920-A, an amendment to it passed unanimously

642-496: A fuel. While coal has been known and used for thousands of years, its usage was limited until the Industrial Revolution . With the invention of the steam engine , coal consumption increased. In 2020, coal supplied about a quarter of the world's primary energy and over a third of its electricity . Some iron and steel -making and other industrial processes burn coal. The extraction and burning of coal damages

749-600: A large gap for monopolistic business practices to occur in natural gas transmission. In 1935, the Federal Trade Commission (FTC) issued a report which voiced its concern with the market power of natural gas utilities. Congress then passed the Public Utility Holding Company Act (PUHCA) to try to limit the natural gas holding companies power. However, this act still did not cover the regulation of interstate sales. In 1938,

856-402: A market already served by another pipeline." In 1942, these powers went on to cover any new transmission lines as well. Approval of the FPC was needed before a company could build an interstate transmission line. The act was passed to control the monopolistic tendencies of the market in which companies previously had the power to charge higher than competitive prices. In 1977, the FPC dissolved and

963-417: A process called carbonization . Carbonization proceeds primarily by dehydration , decarboxylation , and demethanation. Dehydration removes water molecules from the maturing coal via reactions such as Decarboxylation removes carbon dioxide from the maturing coal: while demethanation proceeds by reaction such as In these formulas, R represents the remainder of a cellulose or lignin molecule to which

1070-406: A separate decision, the D.C. Circuit later sustained the commission's conduct of separate environmental assessments when it clarified that the "critical" factor was that all of the pipeline's projects were either under construction or pending before FERC for environmental review at the same time, noting that the projects lacked temporal overlap. Furthermore, in another case, the D.C. Circuit sustained

1177-586: A separate independent regulatory body be retained, and the FPC was renamed the Federal Energy Regulatory Commission (FERC), preserving its independent status within the department. Its most basic mandate was to "determine whether wholesale electricity prices were unjust and unreasonable and, if so, to regulate pricing and order refunds for overcharges to ratepayers." FERC was also given added responsibility to hear appeals of DOE oil price control determinations and to conduct all "on

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1284-687: A situation here." FERC's decisions in those cases are often upheld by the courts. In a July 1, 2014, decision, No Gas Pipeline v. Federal Energy Regulatory Commission , the United States Court of Appeals for the District of Columbia Circuit (D.C. Circuit) said that pipeline applicants are not likely to pursue many certificates that are hopeless. "The fact that they generally succeed in choosing to expend their resources on applications that serve their own financial interests does not mean that an agency which recognizes merit in such applications

1391-468: A switch in fuels happened in London in the late sixteenth and early seventeenth centuries. Historian Ruth Goodman has traced the socioeconomic effects of that switch and its later spread throughout Britain and suggested that its importance in shaping the industrial adoption of coal has been previously underappreciated. The development of the Industrial Revolution led to the large-scale use of coal, as

1498-561: A tenth. Indonesia and Australia export the most, followed by Russia . The word originally took the form col in Old English , from reconstructed Proto-Germanic * kula ( n ), from Proto-Indo-European root * g ( e ) u-lo- "live coal". Germanic cognates include the Old Frisian kole , Middle Dutch cole , Dutch kool , Old High German chol , German Kohle and Old Norse kol . Irish gual

1605-432: A third party. FERC has promoted voluntary formation of regional transmission organizations (RTOs) and Independent System Operators (ISOs) to eliminate the potential for undue discrimination in access to the electric grid ; it has made key decisions expanding its own power in regional and interregional transmission planning and cost allocation through the landmark Order Nos. 1000, 1920, 1977, and 2023. FERC investigated

1712-403: A weight basis. This composition reflects partly the composition of the precursor plants. The second main fraction of coal is ash, an undesirable, noncombustable mixture of inorganic minerals. The composition of ash is often discussed in terms of oxides obtained after combustion in air: Of particular interest is the sulfur content of coal, which can vary from less than 1% to as much as 4%. Most of

1819-406: A weight composition of about 54% carbon, 6% hydrogen, and 30% oxygen, while cellulose has a weight composition of about 44% carbon, 6% hydrogen, and 49% oxygen. Bituminous coal has a composition of about 84.4% carbon, 5.4% hydrogen, 6.7% oxygen, 1.7% nitrogen, and 1.8% sulfur, on a weight basis. The low oxygen content of coal shows that coalification removed most of the oxygen and much of the hydrogen

1926-453: Is a type of fossil fuel , formed when dead plant matter decays into peat which is converted into coal by the heat and pressure of deep burial over millions of years. Vast deposits of coal originate in former wetlands called coal forests that covered much of the Earth's tropical land areas during the late Carboniferous ( Pennsylvanian ) and Permian times. Coal is used primarily as

2033-584: Is also a cognate via the Indo-European root. The conversion of dead vegetation into coal is called coalification . At various times in the geologic past, the Earth had dense forests in low-lying areas. In these wetlands, the process of coalification began when dead plant matter was protected from oxidation , usually by mud or acidic water, and was converted into peat . The resulting peat bogs , which trapped immense amounts of carbon, were eventually deeply buried by sediments. Then, over millions of years,

2140-707: Is authorized to raise revenue to reimburse the United States Treasury for its appropriations, through annual charges to the natural gas, oil, and electric industries it regulates. FERC is independent of the Department of Energy political structure because FERC activities "shall not be subject to further view by the Secretary [of Energy] or any officer or employee of the Department". The Department of Energy can, however, participate in FERC proceedings as

2247-425: Is biased," the court said. Others have directly disputed FERC's critics by pointing out, "FERC is a creature of law. It follows a careful administrative path to regulate only a portion of natural gas such as interstate pipelines and LNG import and export terminals. That regulation includes extensive environmental review, driven by many federal laws enacted by Congress, signed by the president, and reviewed and upheld by

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2354-429: Is burned in a turbine). Hot exhaust gases from the turbine are used to raise steam in a heat recovery steam generator which powers a supplemental steam turbine . The overall plant efficiency when used to provide combined heat and power can reach as much as 94%. IGCC power plants emit less local pollution than conventional pulverized coal-fueled plants. Other ways to use coal are as coal-water slurry fuel (CWS), which

2461-606: Is by participating in the related proceeding by submitting comments and participating in public comment sessions, site visits and scoping meetings, since FERC decisions can be appealed up to the Supreme Court. There are regions of the country where the state public utility commission and the FERC regulated Regional Transmission Organization operate in identical footprints (such as in New York State ). Where this occurs, state policy makers and FERC frequently clash as to

2568-603: Is entirely vertical; however, metamorphism may cause lateral changes of rank, irrespective of depth. For example, some of the coal seams of the Madrid, New Mexico coal field were partially converted to anthracite by contact metamorphism from an igneous sill while the remainder of the seams remained as bituminous coal. The earliest recognized use is from the Shenyang area of China where by 4000 BC Neolithic inhabitants had begun carving ornaments from black lignite. Coal from

2675-455: Is made when metallurgical coal (also known as coking coal ) is baked in an oven without oxygen at temperatures as high as 1,000 °C, driving off the volatile constituents and fusing together the fixed carbon and residual ash. Metallurgical coke is used as a fuel and as a reducing agent in smelting iron ore in a blast furnace . The carbon monoxide produced by its combustion reduces hematite (an iron oxide ) to iron. Pig iron , which

2782-409: Is more abundant, and anthracite. The % carbon in coal follows the order anthracite > bituminous > lignite > brown coal. The fuel value of coal varies in the same order. Some anthracite deposits contain pure carbon in the form of graphite . For bituminous coal, the elemental composition on a dry, ash-free basis of 84.4% carbon, 5.4% hydrogen, 6.7% oxygen, 1.7% nitrogen, and 1.8% sulfur, on

2889-659: Is too rich in dissolved carbon, is also produced. Federal Energy Regulatory Commission The Federal Energy Regulatory Commission ( FERC ) is an independent agency of the United States government that regulates the interstate transmission and wholesale sale of electricity and natural gas and regulates the prices of interstate transport of petroleum by pipeline . FERC also reviews proposals to build interstate natural gas pipelines, natural gas storage projects, and liquefied natural gas (LNG) terminals, in addition to licensing non-federal hydropower projects. FERC

2996-452: Is used as fuel. 27.6% of world energy was supplied by coal in 2017 and Asia used almost three-quarters of it. Other large-scale applications also exist. The energy density of coal is roughly 24 megajoules per kilogram (approximately 6.7 kilowatt-hours per kg). For a coal power plant with a 40% efficiency, it takes an estimated 325 kg (717 lb) of coal to power a 100 W lightbulb for one year. In 2022, 68% of global coal use

3103-715: The Bronze Age (3000–2000 BC), where it formed part of funeral pyres . In Roman Britain , with the exception of two modern fields, "the Romans were exploiting coals in all the major coalfields in England and Wales by the end of the second century AD". Evidence of trade in coal, dated to about AD 200, has been found at the Roman settlement at Heronbridge , near Chester ; and in the Fenlands of East Anglia , where coal from

3210-521: The Fushun mine in northeastern China was used to smelt copper as early as 1000 BC. Marco Polo , the Italian who traveled to China in the 13th century, described coal as "black stones ... which burn like logs", and said coal was so plentiful, people could take three hot baths a week. In Europe, the earliest reference to the use of coal as fuel is from the geological treatise On Stones (Lap. 16) by

3317-628: The Interstate Commerce Commission to FERC. However, the FERC lost some jurisdiction over the imports and exports of gas and electricity. In 1978, FERC was given additional responsibilities for harmonizing the regulation of wellhead gas sales in both the intrastate and interstate markets. FERC also administered a program to foster new cogeneration and small power production under the Public Utilities Regulatory Policy Act of 1978 , which

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3424-607: The Midlands was transported via the Car Dyke for use in drying grain. Coal cinders have been found in the hearths of villas and Roman forts , particularly in Northumberland , dated to around AD 400. In the west of England, contemporary writers described the wonder of a permanent brazier of coal on the altar of Minerva at Aquae Sulis (modern day Bath ), although in fact easily accessible surface coal from what became

3531-665: The New York Independent System Operator (NYISO), and the Independent Sysoperator New England (ISO-NE) were early adopters. California, with the backing of its state and Congressional policymakers, sought approval of a controversial scheme to set up its ISO, called California ISO, based near Sacramento, CA. FERC approved it without changes because California had warned that it would not accept any changes. Enron charged one of its policy analysts to figure out how to make

3638-728: The Somerset coalfield was in common use in quite lowly dwellings locally. Evidence of coal's use for iron -working in the city during the Roman period has been found. In Eschweiler , Rhineland , deposits of bituminous coal were used by the Romans for the smelting of iron ore . No evidence exists of coal being of great importance in Britain before about AD 1000, the High Middle Ages . Coal came to be referred to as "seacoal" in

3745-607: The United States Congress passed the Natural Gas Act in order to take control of interstate natural gas transmission. This was the first time the federal government became involved in regulating rates of interstate transmission. The act gave the Federal Power Commission (FPC), a government agency, jurisdiction over regulation. It was the job of the FPC to regulate the rates that transmission companies charged. The act required that companies obtain

3852-491: The coal gap in the Permian–Triassic extinction event , where coal is rare. Favorable geography alone does not explain the extensive Carboniferous coal beds. Other factors contributing to rapid coal deposition were high oxygen levels, above 30%, that promoted intense wildfires and formation of charcoal that was all but indigestible by decomposing organisms; high carbon dioxide levels that promoted plant growth; and

3959-447: The steam engine took over from the water wheel . In 1700, five-sixths of the world's coal was mined in Britain. Britain would have run out of suitable sites for watermills by the 1830s if coal had not been available as a source of energy. In 1947 there were some 750,000 miners in Britain, but the last deep coal mine in the UK closed in 2015. A grade between bituminous coal and anthracite

4066-407: The 13th century; the wharf where the material arrived in London was known as Seacoal Lane, so identified in a charter of King Henry III granted in 1253. Initially, the name was given because much coal was found on the shore, having fallen from the exposed coal seams on cliffs above or washed out of underwater coal outcrops, but by the time of Henry VIII , it was understood to derive from the way it

4173-596: The Carboniferous, and suggested that climatic and tectonic factors were a more plausible explanation, reconstruction of ancestral enzymes by phylogenetic analysis corroborated a hypothesis that lignin degrading enzymes appeared in fungi approximately 200 MYa. One likely tectonic factor was the Central Pangean Mountains , an enormous range running along the equator that reached its greatest elevation near this time. Climate modeling suggests that

4280-598: The Central Pangean Mountains contributed to the deposition of vast quantities of coal in the late Carboniferous. The mountains created an area of year-round heavy precipitation, with no dry season typical of a monsoon climate. This is necessary for the preservation of peat in coal swamps. Coal is known from Precambrian strata, which predate land plants. This coal is presumed to have originated from residues of algae. Sometimes coal seams (also known as coal beds) are interbedded with other sediments in

4387-689: The Commission..., Plaintiffs' recourse lies with their legislative representatives." In New Jersey, the FERC approval of the PennEast Pipeline was met with widespread criticism by environmental groups, which called the decision highly partisan. "FERC has once again demonstrated its tremendous bias for, and partnership with, the pipeline industry," said Maya van Rossum, leader of the Delaware Riverkeeper Network. Doug O'Malley, president of Environment New Jersey, called

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4494-478: The D.C. Circuit has provided additional guidance concerning Commission procedures, stating that in one case FERC failed to consider the cumulative environmental impact of four projects that had been separately proposed by the same pipeline. The D.C. Circuit held that the projects were not financially independent and were "a single pipeline" that was "linear and physically interdependent," so the cumulative environmental impacts should have been considered concurrently. In

4601-407: The Delaware Riverkeeper Network and Maya Van Rossum's claim that FERC has an incentive to award pipeline certificates because it collects its operating expenses from regulated parties. Upholding a lower court ruling, the D.C. Circuit also rejected the Delaware Riverkeeper Network's challenge to FERC's use of tolling orders to meet its statutory deadlines for acting on rehearing applications. However,

4708-433: The Department. In 1978, FERC was given additional responsibilities for harmonizing the regulation of wellhead gas sales in both the intrastate and interstate markets. In 1983, Congress ended federal regulation of wellhead natural gas prices. After this decision, FERC looked to increase competition in the natural gas industry. The Energy Policy Act of 2005 expanded FERC's authority to impose mandatory reliability standards on

4815-439: The FERC approval of the pipeline a "disaster." David Pringle, state campaign director of Clean Water Action and 2018 Congressional candidate, suggested the FERC was serving a partisan interest over the interests of the people of New Jersey, suggesting "The FERC needs to remember it works for the people of the United States not PennEast." These criticisms were unfounded as the D.C. Circuit Court of Appeals on July 10, 2018, rejected

4922-577: The Greek scientist Theophrastus (c. 371–287 BC): Among the materials that are dug because they are useful, those known as anthrakes [coals] are made of earth, and, once set on fire, they burn like charcoal [anthrakes]. They are found in Liguria ;... and in Elis as one approaches Olympia by the mountain road; and they are used by those who work in metals. Outcrop coal was used in Britain during

5029-544: The Kerr Bill even though the Commission itself was neutral. In Phillips Petroleum Co. v. Wisconsin , the Supreme Court held that the sale of natural gas at the wellhead was indeed subject to regulation under the Natural Gas Act. The case resulted in federal price controls on wellhead gas prices for the next 40 years. The act also specified that "no new interstate pipeline could be built to deliver natural gas into

5136-581: The Natural Gas Act of 1938. The 1956 Harris-Fulbright Natural Gas Bill aimed to amend the Act in order to deregulate the Natural Gas market, but it failed after being vetoed by President Eisenhower . Coal Coal is a combustible black or brownish-black sedimentary rock , formed as rock strata called coal seams . Coal is mostly carbon with variable amounts of other elements , chiefly hydrogen , sulfur , oxygen , and nitrogen . Coal

5243-570: The RTO, when a state public utility commission asserts that its retail ratepayers (under state regulation) will be impacted by wholesale-market stakeholder decisions and reforms (under federal-level regulation). In contrast, prior to the formation of the NYISO in 1999 in New York, wholesale energy prices were set within a utility's state rate case proceeding. Examples of contentious issues in New York include

5350-537: The Supreme Court decision in Phillips v. Wisconsin extended FPC jurisdiction over all wellhead sales of natural gas in interstate commerce. Congress passed the U.S. Department of Energy Organization Act in 1977 , which consolidated various energy-related agencies into a Department of Energy. Congress insisted that a separate independent regulatory body be retained, and the FPC was renamed the Federal Energy Regulatory Commission, preserving its independent status "within"

5457-646: The U.S. It is largely responsible for permitting construction of a large network of interstate natural gas pipelines. FERC also works closely with the United States Coast Guard to review the safety, security, and environmental impacts of proposed LNG terminals and associated shipping. FERC is composed of up to five commissioners who are appointed by the President and confirmed by the Senate to staggered five-year terms. The President appoints one of

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5564-597: The U.S. Supreme Court. If the agency were to adopt the path [suggested by these critics], FERC's decisions would routinely be overturned by the federal courts." The United States District Court for the District of Columbia also dismissed a case involving allegations of structural bias on the part of FERC. The plaintiffs contended that the Omnibus Budget Act of 1986 funding mechanism requires the commission to recover its budget through proportional charges on regulated entities, therefore making FERC biased in favor of

5671-509: The U.S. energy policy and regulation. The natural gas industry has undergone tremendous change since 1938, and pipeline companies no longer function as resellers of gas to local distribution companies (LDCs), the ideas behind the act still impact natural gas regulation to this day. Concern about market power continues to be a key driver of natural gas regulation and monitoring of the market. The NGA largely preempted state regulation of interstate natural gas pipelines. Chronology of amendments to

5778-451: The agency had the authority to regulate demand response transactions. On July 28, 2023, the Federal Energy Regulatory Commission issued Order No. 2023, which regulates the interconnection process that ties renewables projects into the large-scale grid. Among other provisions, the rule requires transmission planners to consolidate projects into 'clusters' for regulatory approval purposes on a 'first-ready, first-served' basis that prioritizes

5885-687: The alleged manipulation of electricity market by Enron and other energy companies, and their role in the California electricity crisis . FERC has collected more than $ 6.3 billion from California electric market participants through settlements. Since passage of the Energy Policy Act of 2005 , FERC has imposed, through settlements and orders, more than $ 1 billion in civil penalties and disgorgement of unjust profits to address violations of its anti- market manipulation and other rules. FERC regulates approximately 1,600 hydroelectric projects in

5992-625: The authority to regulate natural gas was transferred to the Federal Energy Regulatory Commission (FERC). In 1920, the FPC was established by congress to coordinate hydroelectric projects under federal control. Early on, the FPC was under joint administration of the Secretary of War, Interior, and Agriculture while the FPC only had an Executive Secretary. All of their other personnel was borrowed from these other departments. This mixture of leadership often resulted in conflicting mandates and made it difficult to design

6099-410: The bulk transmission system and to impose penalties on entities that manipulate the electricity and natural gas markets. The Energy Policy Act of 2005 gave FERC additional responsibilities as outlined in FERC's Top Priorities and updated Strategic Plan. As part of that responsibility, FERC: The Natural Gas Act of 1938 had an enormous impact on the future of not only the interstate natural gas market, but

6206-421: The commission's use of a separate environmental assessment when it reasoned that the projects in dispute were "unrelated" and did not depend on one another for their justification. This guidance has allowed FERC to address additional claims of improper segmentation. FERC's leaders have stressed many times since the onset of the increased activism that the proper way to oppose a proposed new infrastructure project

6313-421: The commissioners to be the chairman of FERC, the administrative head of the agency. FERC is a bipartisan body; no more than three commissioners may be of the same political party. Commissioners may continue in office past the end of their term if a successor has not yet been confirmed, up to the end of the current session of Congress. The commissioners are: The Federal Power Commission (FPC), which preceded FERC,

6420-542: The country facing transmission constraints." In 2010, FERC issued Order No. 1000, which required RTOs to create regional transmission plans and identify transmission needs based on public policy. Cost allocation reforms were included, possibly to reduce barriers faced by non incumbent transmission developers. In February 2018, FERC issued Order No. 841, which required wholesale markets to open up to individual storage installations, regardless of interconnection point (transmission, distribution or behind-the-meter). The Order

6527-630: The creation of regional transmission organizations in the United States. This would impact existing electric power pools by rebranding themselves as independent transmission operators. Electric utilities in some regions began to spin off their generation units as separate companies that would compete in a wholesale electric market administered by the RTOs. Once FERC had created the framework for Regional Transmission Organizations with Order No. 888, several such RTOs were approved. The pre-existing multi-state power pool called PJM (Pennsylvania, Jersey, Maryland),

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6634-645: The distribution level or behind-the-meter. A United States courts of appeals court (the D.C. Circuit) issued an order in July 2020 that upheld Order 841 and dismissed the petitioners' complaints. FERC issued Order No. 2222 on September 17, 2020, enabling distributed energy resources such as batteries and demand response to participate in regional wholesale electricity markets. Market operators submitted initial compliance plans by early 2022. The Supreme Court had ruled in 2016 in FERC v. Electric Power Supply Ass'n that

6741-407: The electricity and natural gas markets. The Energy Policy Act of 2005 also gave FERC additional responsibilities and authority. Among the many provisions of the law, FERC was given what is known as "backstop" siting authority which allows FERC to overrule any denial of transmission projects by a state within established corridors of transmission congestion "to expand transmission in limited regions of

6848-547: The entities it regulates creates bias in favor of the issuance of pipeline certificates. Some of the critics have disrupted several regular open meetings of the Commission and staged a couple of week-long blockades of FERC's headquarters in Washington, D.C., to make their points. "Pipelines are facing unprecedented opposition," Commissioner LaFleur remarked to the National Press Club in a 2015 speech. "We have

6955-571: The environment , causing premature death and illness, and it is the largest anthropogenic source of carbon dioxide contributing to climate change . Fourteen billion tonnes of carbon dioxide were emitted by burning coal in 2020, which is 40% of total fossil fuel emissions and over 25% of total global greenhouse gas emissions . As part of worldwide energy transition , many countries have reduced or eliminated their use of coal power . The United Nations Secretary General asked governments to stop building new coal plants by 2020. Global coal use

7062-430: The evolution of the first trees . But bacteria and fungi did not immediately evolve the ability to decompose lignin, so the wood did not fully decay but became buried under sediment, eventually turning into coal. About 300 million years ago, mushrooms and other fungi developed this ability, ending the main coal-formation period of earth's history. Although some authors pointed at some evidence of lignin degradation during

7169-430: The extent of federal power and influence within the state. The planning and siting of public policy and renewable power plants and merchant transmission lines can be contentious, because the planning process must proceed through both entities. For example, in New York State, any large (more than 20 MW for the NYISO or 2 MW for the state Siting Committee) generation or merchant transmission facility must proceed through both

7276-519: The factors involved in coalification, temperature is much more important than either pressure or time of burial. Subbituminous coal can form at temperatures as low as 35 to 80 °C (95 to 176 °F) while anthracite requires a temperature of at least 180 to 245 °C (356 to 473 °F). Although coal is known from most geologic periods , 90% of all coal beds were deposited in the Carboniferous and Permian periods. Paradoxically, this

7383-420: The final sale to retail customers were exempt from the law. Although the Natural Gas Act might regulate both the transportation and sale of gas in interstate commerce, the production and gathering of gas was exempt from federal regulation. Oil companies claimed that because production and gathering was exempt, any sales that took place at the wellhead or along the gathering lines between the oil company that owned

7490-716: The following November, allows state regulators even more opportunities to provide input on interstate grid projects, adds six months to the cost allocation negotiating process, and gives utilities more leeway to forecast additional needs scenarios. The latter order affirms FERC's siting authority in National Interest Electric Transmission Corridors if a state regulatory agency denies any of its own siting responsibility thereof. The order creates an Applicant Code of Conduct to encourage proper landowner outreach, and adds air quality, environmental justice and tribal engagement reports to

7597-475: The following: FERC is a large independent regulatory agency , within the United States Department of Energy , that participates in business oversight. The President and Congress do not generally review FERC decisions, but the decisions are reviewable by the federal courts . FERC is self-funding, in that Congress sets its budget through annual and supplemental appropriations and FERC

7704-498: The form of iron pyrite (FeS 2 ). Being a dense mineral, it can be removed from coal by mechanical means, e.g. by froth flotation . Some sulfate occurs in coal, especially weathered samples. It is not volatilized and can be removed by washing. Minor components include: As minerals, Hg, As, and Se are not problematic to the environment, especially since they are only trace components. They become however mobile (volatile or water-soluble) when these minerals are combusted. Most coal

7811-496: The gas. The Kerr Bill was introduced in 1949 to amend the Act to specifically exclude the regulation of wellhead gas prices. Although it passed both houses it was vetoed by Truman in 1950. The dispute is said to have played a part in 1949's failed renomination of Leland Olds , the Chairman of the Federal Power Commission , who believed in aggressive use of the FPC's powers to regulate Natural Gas prices and had testified against

7918-475: The heat and pressure of deep burial caused the loss of water, methane and carbon dioxide and increased the proportion of carbon. The grade of coal produced depended on the maximum pressure and temperature reached, with lignite (also called "brown coal") produced under relatively mild conditions, and sub-bituminous coal , bituminous coal , or anthracite coal (also called "hard coal" or "black coal") produced in turn with increasing temperature and pressure. Of

8025-431: The increasing tendency of the anthracite to break with a conchoidal fracture , similar to the way thick glass breaks. As geological processes apply pressure to dead biotic material over time, under suitable conditions, its metamorphic grade or rank increases successively into: There are several international standards for coal. The classification of coal is generally based on the content of volatiles . However

8132-447: The industry from which it gets its funding. But in an order issued March 22, 2017, the court said the plain language of the statute indicates that FERC does not have control over its own budget. "The Commission's budget cannot be increased by approving pipelines; rather, [the statute] requires the Commission to make adjustments to 'eliminate any overrecovery or underrecovery.' If Plaintiffs are unhappy with Congress's chosen appropriations to

8239-426: The issue ended with the 2005 Energy Bill ( Energy Policy Act of 2005 ) which was passed with approval of Democrats and Republicans. The Energy Policy Act of 2005 expanded FERC's authority to protect the reliability and cybersecurity of the bulk power system through the establishment and enforcement of mandatory standards, as well as greatly expanding FERC authority to impose civil penalties on entities that manipulate

8346-406: The list of requirements for project applicants. FERC has been subject to criticism and increasing activism by people from communities affected by its decisions approving pipeline and related projects. They contend that FERC "blithely greenlights too many pipelines, export terminals and other gas infrastructure" and that FERC's structure in which it recovers its annual operating costs directly from

8453-453: The morphology and some properties of the original plant. In many coals, individual macerals can be identified visually. Some macerals include: In coalification huminite is replaced by vitreous (shiny) vitrinite . Maturation of bituminous coal is characterized by bitumenization , in which part of the coal is converted to bitumen , a hydrocarbon-rich gel. Maturation to anthracite is characterized by debitumenization (from demethanation) and

8560-405: The most important distinction is between thermal coal (also known as steam coal), which is burnt to generate electricity via steam; and metallurgical coal (also known as coking coal), which is burnt at high temperature to make steel . Hilt's law is a geological observation that (within a small area) the deeper the coal is found, the higher its rank (or grade). It applies if the thermal gradient

8667-607: The most of the flawed rules put in place for the California electricity market. Enron had success with its fraudulent market transactions. In 2001, the George W. Bush administration sought to give the authority of eminent domain to FERC to circumvent state and local bureaucratic processes which often slowed the siting of new transmission projects. This expansion of power was most fiercely opposed by Bush's own Republican party as being an expansion of federal power. Legal battles over

8774-534: The most well-studied and fully financed projects, forecast advanced technologies, and allow for multiple projects to share a new single interconnection point. It also "imposes firm deadlines and penalties if transmission providers fail to complete interconnection studies on time". On May 13, 2024, FERC issued Order Nos. 1920 and 1977. The former order requires utilities to plan 20 years in advance to anticipate future regional (though not interregional) transmission needs, with five-year updates, and to cooperate in creating

8881-407: The nature of Carboniferous forests, which included lycophyte trees whose determinate growth meant that carbon was not tied up in heartwood of living trees for long periods. One theory suggested that about 360 million years ago, some plants evolved the ability to produce lignin , a complex polymer that made their cellulose stems much harder and more woody. The ability to produce lignin led to

8988-455: The number of double bonds between carbon). As carbonization proceeds, aliphatic compounds convert to aromatic compounds . Similarly, aromatic rings fuse into polyaromatic compounds (linked rings of carbon atoms). The structure increasingly resembles graphene , the structural element of graphite. Chemical changes are accompanied by physical changes, such as decrease in average pore size. The macerals are coalified plant parts that retain

9095-543: The planning process of the NYISO, which operates on a two-year cycle at minimum with an inclusive class year pool of new projects evaluated simultaneously, and the siting process of the state Board on Electric Siting and the Environment. Prior to the formation of the NYISO, the planning process was determined mostly by the state siting board (although the utilities' power pool might have had its own closed door planning session) and large generation projects were developed by

9202-456: The pre-combustion treatment, turbine technology (e.g. supercritical steam generator ) and the age of the plant. A few integrated gasification combined cycle (IGCC) power plants have been built, which burn coal more efficiently. Instead of pulverizing the coal and burning it directly as fuel in the steam-generating boiler, the coal is gasified to create syngas , which is burned in a gas turbine to produce electricity (just like natural gas

9309-441: The rates that could be charged would be regulated by the local governments. In the 1900s, natural gas was not only used in the locations it was produced, it began to be shipped between municipalities. Intrastate pipelines between cities began to develop and local governments no longer had the authority to regulate rates. The solution to this problem was to enlist state level public utilities commissions to oversee regulation. In

9416-427: The reacting groups are attached. Dehydration and decarboxylation take place early in coalification, while demethanation begins only after the coal has already reached bituminous rank. The effect of decarboxylation is to reduce the percentage of oxygen, while demethanation reduces the percentage of hydrogen. Dehydration does both, and (together with demethanation) reduces the saturation of the carbon backbone (increasing

9523-413: The record" hearings for DOE. As a result, DOE does not have any administrative law judges . As a further protection, when the Department of Energy proposes a rule, it must refer the proposal to FERC, and FERC can take over the proceeding if FERC determines that the rulemaking "may significantly affect" matters in its jurisdiction. The DOE Act also transferred the regulation of interstate oil pipelines from

9630-399: The sulfur and most of the nitrogen is incorporated into the organic fraction in the form of organosulfur compounds and organonitrogen compounds . This sulfur and nitrogen are strongly bound within the hydrocarbon matrix. These elements are released as SO 2 and NO x upon combustion. They cannot be removed, economically at least, otherwise. Some coals contain inorganic sulfur, mainly in

9737-422: The utilities themselves. The dual planning process provides an opportunity for other market participants to drag out the process legally, not including the other state and/or federal environmental, trade (if an international connection with Canada is requested), and local certification and regulation processes that need to be met. The controversy similarly applies to various electric wholesale-market issues within

9844-416: The well and the pipeline company was also exempt from Natural Gas Act regulation. The producers wanted to charge a wellhead price based on market forces, while consumer groups argued that the Natural Gas Act intended that both producers and pipelines should be limited to cost-based rate regulation, so that the final price paid by consumers would represent only the cost of producing, transporting and distributing

9951-415: The world's coal-generated electricity. Efforts around the world to reduce the use of coal have led some regions to switch to natural gas and renewable energy . In 2018 coal-fired power station capacity factor averaged 51%, that is they operated for about half their available operating hours. Coke is a solid carbonaceous residue that is used in manufacturing steel and other iron-containing products. Coke

10058-406: The years to follow, new technology finally allowed interstate transportation of natural gas. This brought more problems to the ease of regulation. Between the years of 1911 and 1928, states attempted to regulate many of these interstate pipelines. However, the U.S. Supreme Court ruled that state oversight of these pipelines violated the interstate commerce clause of the U.S. Constitution . This left

10165-590: Was 8.3 billion tonnes in 2022, and is set to remain at record levels in 2023. To meet the Paris Agreement target of keeping global warming below 2 °C (3.6 °F) coal use needs to halve from 2020 to 2030, and "phasing down" coal was agreed upon in the Glasgow Climate Pact . The largest consumer and importer of coal in 2020 was China , which accounts for almost half the world's annual coal production, followed by India with about

10272-574: Was based on the trading of this commodity. Coal continues to arrive on beaches around the world from both natural erosion of exposed coal seams and windswept spills from cargo ships. Many homes in such areas gather this coal as a significant, and sometimes primary, source of home heating fuel. Coal consists mainly of a black mixture of diverse organic compounds and polymers. Of course, several kinds of coals exist, with variable dark colors and variable compositions. Young coals (brown coal, lignite) are not black. The two main black coals are bituminous, which

10379-510: Was carried to London by sea. In 1257–1259, coal from Newcastle upon Tyne was shipped to London for the smiths and lime -burners building Westminster Abbey . Seacoal Lane and Newcastle Lane, where coal was unloaded at wharves along the River Fleet , still exist. These easily accessible sources had largely become exhausted (or could not meet the growing demand) by the 13th century, when underground extraction by shaft mining or adits

10486-599: Was challenged in court by the state public utility commissions via the National Association of Regulatory Utility Commissioners (NARUC) , the American Public Power Association , and others who claimed that FERC overstepped its jurisdiction by regulating how local electric distribution and behind-the-meter facilities are administered, i.e., in not providing an opt out of wholesale market access for energy storage facilities located at

10593-438: Was created by the U.S. Congress in 1977 in the aftermath of the 1973 oil crisis . FERC is an independent agency, despite being part of the U.S. Department of Energy . It is headed by five commissioners who are nominated by the U.S. president and confirmed by the U.S. Senate . There may be no more than three commissioners of one political party serving on the commission at any given time. The responsibilities of FERC include

10700-612: Was developed in the Soviet Union , or in an MHD topping cycle . However these are not widely used due to lack of profit. In 2017 38% of the world's electricity came from coal, the same percentage as 30 years previously. In 2018 global installed capacity was 2 TW (of which 1TW is in China) which was 30% of total electricity generation capacity. The most dependent major country is South Africa, with over 80% of its electricity generated by coal; but China alone generates more than half of

10807-408: Was developed. The alternative name was "pitcoal", because it came from mines. Cooking and home heating with coal (in addition to firewood or instead of it) has been done in various times and places throughout human history, especially in times and places where ground-surface coal was available and firewood was scarce, but a widespread reliance on coal for home hearths probably never existed until such

10914-497: Was during the Late Paleozoic icehouse , a time of global glaciation . However, the drop in global sea level accompanying the glaciation exposed continental shelves that had previously been submerged, and to these were added wide river deltas produced by increased erosion due to the drop in base level . These widespread areas of wetlands provided ideal conditions for coal formation. The rapid formation of coal ended with

11021-651: Was established by Congress in 1920 to allow cabinet members to coordinate federal hydropower development. In 1935, the FPC was transformed into an independent regulatory agency with five members nominated by the President and confirmed by the Senate . The FPC was authorized to regulate both hydropower and interstate electricity. In 1938, the Natural Gas Act gave FPC jurisdiction over interstate natural gas pipelines and wholesale sales. In 1942, this jurisdiction

11128-516: Was expanded to cover the licensing of more natural gas facilities. In 1954, the Supreme Court decision in Phillips Petroleum Co. v. Wisconsin extended FPC jurisdiction over all wellhead sales of natural gas in interstate commerce. In response to the 1973 oil crisis, Congress passed the Department of Energy Organization Act in 1977 , to consolidate various energy-related agencies into a Department of Energy . Congress insisted that

11235-564: Was once known as "steam coal" as it was widely used as a fuel for steam locomotives . In this specialized use, it is sometimes known as "sea coal" in the United States. Small "steam coal", also called dry small steam nuts (DSSN), was used as a fuel for domestic water heating . Coal played an important role in industry in the 19th and 20th century. The predecessor of the European Union , the European Coal and Steel Community ,

11342-690: Was passed as part of the National Energy Act of 1978 . The National Energy Act included the Natural Gas Policy Act of 1978 , which reduced the scope of federal price regulation, to bring greater competition to both the natural gas and electric industry. In 1989, Congress ended federal regulation of wellhead natural gas prices, with the passage of the Natural Gas Wellhead Decontrol Act of 1989 . In 1996, FERC issued Order No. 888, which spurred

11449-430: Was used for electricity generation. Coal burnt in coal power stations to generate electricity is called thermal coal . It is usually pulverized and then burned in a furnace with a boiler . The furnace heat converts boiler water to steam , which is then used to spin turbines which turn generators and create electricity. The thermodynamic efficiency of this process varies between about 25% and 50% depending on

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