118 STAT. 1257 PUBLIC LAW 108–324—OCT. 13, 2004 (C) for any open season for capacity exceeding the initial capacity, provide the opportunity for the transpor tation of natural gas other than from the Prudhoe Bay and Point Thomson units. (3) APPLICABILITY.—Except in a case in which an expansion is ordered in accordance with section 105, initial or expansion capacity on any Alaska natural gas transportation project shall be allocated in accordance with procedures to be established by the Commission in regulations issued under paragraph (1). (f) PROJECTS IN THE CONTIGUOUS UNITED STATES.— (1) IN GENERAL.—An application for additional or expanded pipeline facilities that may be required to transport Alaska natural gas from Canada to markets in the contiguous United States may be made in accordance with the Natural Gas Act (15 U.S.C. 717a et seq.). (2) EXPANSION.—To the extent that a pipeline facility described in paragraph (1) includes the expansion of any facility constructed in accordance with the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719 et seq.), that Act shall continue to apply. (g) STUDY OF IN STATE NEEDS.—The holder of the certificate of public convenience and necessity issued, modified, or amended by the Commission for an Alaska natural gas transportation project shall demonstrate that the holder has conducted a study of Alaska in State needs, including tie in points along the Alaska natural gas transportation project for in State access. (h) ALASKA ROYALTY GAS.— (1) IN GENERAL.—Except as provided in paragraph (2), the Commission, on a request by the State and after a hearing, may provide for reasonable access to the Alaska natural gas transportation project by the State (or State designee) for the transportation of royalty gas of the State for the purpose of meeting local consumption needs within the State. (2) EXCEPTION.—The rates of shippers of subscribed capacity on an Alaska natural gas transportation project described in paragraph (1), as in effect as of the date on which access under that paragraph is granted, shall not be increased as a result of such access. (i) REGULATIONS.—The Commission may issue such regulations as are necessary to carry out this section. SEC. 104. ENVIRONMENTAL REVIEWS. (a) COMPLIANCE WITH NEPA.—The issuance of a certificate of public convenience and necessity authorizing the construction and operation of any Alaska natural gas transportation project under section 103 shall be treated as a major Federal action signifi cantly affecting the quality of the human environment within the meaning of section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)). (b) DESIGNATION OF LEAD AGENCY.— (1) IN GENERAL.—The Commission— (A) shall be the lead agency for purposes of complying with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); and (B) shall be responsible for preparing the environ mental impact statement required by section 102(2)(c) of 15 USC 720b.
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