Retirement of Requirements in Reliability Standards
Federal Register, Volume 78 Issue 235 (Friday, December 6, 2013)
Federal Register Volume 78, Number 235 (Friday, December 6, 2013)
Rules and Regulations
Pages 73424-73434
From the Federal Register Online via the Government Printing Office www.gpo.gov
FR Doc No: 2013-28516
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 40
Docket No. RM13-8-000; Order No. 788
Retirement of Requirements in Reliability Standards
AGENCY: Federal Energy Regulatory Commission, DOE.
ACTION: Final rule.
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SUMMARY: Pursuant to section 215 of the Federal Power Act, the Commission approves the retirement of 34 requirements within 19 Reliability Standards identified by the North American Electric Reliability Corporation (NERC), the Commission-certified Electric Reliability Organization. The requirements approved for retirement either: Provide little protection for Bulk-Power System reliability; or are redundant with other aspects of the Reliability Standards. In addition, the Commission withdraws 41 Commission directives that NERC develop modifications to Reliability Standards. This rule is part of the Commission's ongoing effort to review its requirements and reduce unnecessary burdens by eliminating requirements that are not necessary to the performance of the Commission's regulatory responsibilities.
DATES: Effective Date: This rule will become effective January 21, 2014.
FOR FURTHER INFORMATION CONTACT:
Kevin Ryan (Legal Information), Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, Telephone: (202) 502-6840
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Michael Gandolfo (Technical Information), Office of Electric Reliability, Division of Reliability Standards and Security, Federal Energy Regulatory Commission 888 First Street NE., Washington, DC 20426, Telephone: (202) 502-6817.
SUPPLEMENTARY INFORMATION:
145 FERC 61,147
Before Commissioners: Jon Wellinghoff, Chairman; Philip D. Moeller, John R. Norris, Cheryl A. LaFleur, and Tony Clark.
Final Rule
(Issued November 21, 2013)
1. Pursuant to section 215(d) of the Federal Power Act (FPA),\1\ the Commission approves the retirement of 34 requirements within 19 Reliability Standards identified by the North American Electric Reliability Corporation (NERC), the Commission-certified Electric Reliability Organization (ERO). The retirement of these provisions meet the benchmarks set forth in the Commission's March 15, 2012 order that requirements proposed for retirement either: (1) Provide little protection for Bulk-Power System reliability or (2) are redundant with other aspects of the Reliability Standards.\2\ Consistent with the Commission's proposal in the March 2012 Order, we conclude that the requirements approved for retirement can ``be removed from the Reliability Standards with little effect on reliability and an increase in efficiency of the ERO compliance program.'' \3\
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\1\ 16 U.S.C. 824o(d) (2006).
\2\ See North American Electric Reliability Corp., 138 FERC 61,193, at P 81 (March 2012 Order), order on reh'g and clarification, 139 FERC 61,168 (2012).
\3\ Id. P 81.
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2. In addition, in this Final Rule, we withdraw 41 directives that NERC develop modifications to Reliability Standards.\4\ In Order No. 693 and subsequent final rules, the Commission has identified various issues and directed NERC to develop modifications to the Reliability Standards or take other action to address those issues.\5\ While NERC has addressed many of these directives, over 150 directives remain outstanding. The withdrawal of these directives will enhance the efficiency of the Reliability Standards development process, with little or no impact on Bulk-Power System reliability.
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\4\ The 41 withdrawn directives are listed in Attachment A to this Final Rule.
\5\ Mandatory Reliability Standards for the Bulk-Power System, Order No. 693, FERC Stats. & Regs. 31,242, order on reh'g, Order No. 693-A, 120 FERC 61,053 (2007). See also Mandatory Reliability Standards for the Calculation of Available Transfer Capability, Capacity Benefit Margins, Transmission Reliability Margins, Total Transfer Capability, and Existing Transmission Commitments and Mandatory Reliability Standards for the Bulk-Power System, Order No. 729, 129 FERC 61,155 (2009), order on clarification, Order No. 729-A, 131 FERC 61,109 (2010), order on reh'g and reconsideration, Order No. 729-B, 132 FERC 61,027 (2010).
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3. Pursuant to Executive Order 13579, the Commission issued a plan to identify regulations that warrant repeal or modification, or strengthening, complementing, or modernizing where necessary or appropriate.\6\ In the Plan, the Commission also stated that it voluntarily and routinely, albeit informally, reviews its regulations to ensure that they achieve their intended purpose and do not impose undue burdens on regulated entities or unnecessary costs on those entities or their customers. The action in this Final Rule is a part of the Commission's ongoing effort to review its requirements and reduce unnecessary burdens by eliminating requirements that are not necessary to the performance of the Commission's regulatory responsibilities.
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\6\ Plan for Retrospective Analysis of Existing Rules, Docket No. AD12-6-000 (Nov. 8, 2011). Executive Order 13579 requests that independent agencies issue public plans for periodic retrospective analysis of their existing ``significant regulations.'' Retrospective analysis should identify ``significant regulations'' that may be outmoded, ineffective, insufficient, or excessively burdensome, and to modify, streamline, expand, or repeal them in order to achieve the agency's regulatory objective.
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Background
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Section 215 of the FPA
4. Section 215 of the FPA requires the Commission-certified ERO to develop mandatory and enforceable Reliability Standards, subject to Commission review and approval. Once approved, the Reliability Standards may be enforced in the United States by the ERO subject to Commission oversight or by the Commission independently.\7\
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\7\ See 16 U.S.C. 824o(e)(3).
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Pursuant to the requirements of FPA section 215, the Commission established a process to select and certify an ERO \8\ and, subsequently, certified NERC as the ERO.\9\
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\8\ Rules Concerning Certification of the Electric Reliability Organization; and Procedures for the Establishment, Approval, and Enforcement of Electric Reliability Standards, Order No. 672, FERC Stats. & Regs. 31,204, order on reh'g, Order No. 672-A, FERC Stats. & Regs. 31,212 (2006).
\9\ North American Electric Reliability Corp., 116 FERC 61,062, order on reh'g and compliance, 117 FERC 61,126 (2006), aff'd sub nom. Alcoa Inc. v. FERC, 564 F.3d 1342 (D.C. Cir. 2009).
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March 2012 Order
5. In the March 2012 Order, the Commission accepted, with conditions, NERC's ``Find, Fix, Track and Report'' (FFT) initiative. The FFT process, inter alia, provides NERC and the Regional Entities the flexibility to address lower-risk possible violations through an FFT informational filing as opposed to issuing and filing a Notice of Penalty. In addition, the Commission raised the prospect of revising or removing requirements of Reliability Standards that ``provide little protection for Bulk-Power System reliability or may be redundant.'' \10\ Specifically, the Commission stated:
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\10\ March 2012 Order, 138 FERC 61,193 at P 81.
. . . NERC's FFT initiative is predicated on the view that many violations of requirements currently included in Reliability Standards pose lesser risk to the Bulk-Power System. If so, some current requirements likely provide little protection for Bulk-Power System reliability or may be redundant. The Commission is interested in obtaining views on whether such requirements could be removed from the Reliability Standards with little effect on reliability and an increase in efficiency of the ERO compliance program. If NERC believes that specific Reliability Standards or specific requirements within certain Standards should be revised or removed, we invite NERC to make specific proposals to the Commission identifying the Standards or requirements and setting forth in detail the technical basis for its belief. In addition, or in the alternative, we invite NERC, the Regional Entities and other interested entities to propose appropriate mechanisms to identify and remove from the Commission-approved Reliability Standards unnecessary or redundant requirements.\11\
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\11\ Id.
In response, NERC initiated a review, referred to as the ``P 81 project,'' to identify requirements that could be removed from Reliability Standards without impacting the reliability of the Bulk-
Power System.
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NERC Petition
6. In a February 28, 2013 petition, NERC requested Commission approval of the retirement of 34 requirements within 19 Reliability Standards. According to NERC, the 34 requirements proposed for retirement ``are redundant or otherwise unnecessary'' and that ``violations of these requirements . . . pose a lesser risk to the reliability of the Bulk-Power System.'' \12\ NERC stated that the proposed retirement of the 34 requirements ``will allow industry stakeholders to focus their resources appropriately on reliability risks and will increase the efficiency of the ERO compliance program.'' \13\
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\12\ Petition at 2.
\13\ Id.
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7. NERC explained that the ``P 81 Team'' developed three criteria for its review:
(1) Criterion A: An overarching criteria designed to determine that there is no reliability gap created by the proposed retirement; (2) Criterion B: Consists of seven separate identifying criteria designed to recognize requirements appropriate for retirement (administrative; data collection/data retention; documentation; reporting; periodic updates; commercial or business practice; and redundant); and (3) Criterion C: Consists of seven separate questions designed to assist the P 81 Team in making an informed decision regarding whether requirements are appropriate to propose for retirement.\14\
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\14\ Id. at 4. See also id. n. 8 (setting forth the seven questions of Criterion C).
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8. NERC explained that the project team focused on the identification of ``lower-level facilitating requirements that are either redundant with other requirements or where evidence retention is burdensome and the requirement is unnecessary'' because the reliability goal is achieved through other standards or mechanisms.\15\ According to NERC, the proposed retirement of documentation requirements will not create a gap in reliability because ``NERC and the Regional Entities can enforce reporting obligations pursuant to section 400 of NERC's Rules of Procedure and Appendix 4C to ensure that necessary data continues to be submitted for compliance and enforcement purposes.'' \16\ NERC asserts that, although the P 81 project proposes to retire requirements associated with data retention or documentation, ``the simple fact that a requirement includes a data retention or documentation element does not signify that it should be considered for retirement or is otherwise inappropriately designated as a requirement.'' \17\
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\15\ Id. at 7.
\16\ Id. at 8 (citing North American Electric Reliability Corp., 141 FERC 61,241, at P 82 (2012) (approving proposed revisions to NERC's Rules of Procedure)).
\17\ Id. at 9 (emphasis in original).
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9. Based on this approach, NERC identified the following 34 requirements within 19 Reliability Standards for potential retirement:
BAL-005-0.2b, Requirement R2--Automatic Generation Control
CIP-003-3, -4, Requirement R1.2--Cyber Security--Security Management Controls \18\
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\18\ NERC explains that although only eight requirements in the Critical Infrastructure Protection (CIP) body of Reliability Standards are proposed for retirement, NERC proposes the retirement of those eight requirements in both CIP versions 3 and 4. Therefore, the total number of CIP requirements proposed for retirement is sixteen.
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CIP-003-3, -4, Requirements R3, R3.1, R3.2, and R3.3--Cyber Security--Security Management Controls
CIP-003-3, -4, Requirement R4.2--Cyber Security--Security Management Controls
CIP-005-3a, -4a, Requirement R2.6--Cyber Security--Electronic Security Perimeter(s)
CIP-007-3, -4, Requirement R7.3--Cyber Security--Systems Security Management
EOP-005-2, Requirement R3.1--System Restoration From Blackstart Services
FAC-002-1, Requirement R2--Coordination of Plans for New Facilities
FAC-008-3, Requirements R4 and R5--Facility Ratings
FAC-010-2.1, Requirement R5--System Operating Limits Methodology for the Planning Horizon
FAC-011-2.1, Requirement R5--System Operating Limits Methodology for the Operations Horizon
FAC-013-2, Requirement R3--Assessment of Transfer Capability for the Near-term Transmission Planning Horizon
INT-007-1, Requirement R1.2--Interchange Confirmation
IRO-016-1, Requirement R2--Coordination of Real-Time Activities Between Reliability Coordinators
NUC-001-2, Requirements R9.1, R9.1.1, R9.1.2, R9.1.3, and R1.9.4--Nuclear Plant Interface Coordination
PRC-010-0, Requirement R2--Assessment of the Design and Effectiveness of UVLS Programs
PRC-022-1, Requirement R2--Under-Voltage Load Shedding Program Performance
VAR-001-2, Requirement R5--Voltage and Reactive Control
10. NERC also requested that the Commission approve the implementation plan, provided as Exhibit C to NERC's petition, which provided that the identified requirements will be retired immediately upon Commission approval.
11. NERC stated that it will apply the ``concepts'' from the P 81 project to improve the drafting of Reliability Standards going forward. Specifically, NERC explained that Reliability Standards development projects ``will involve stronger examination for duplication of requirements across the NERC body of Reliability Standards and the technical basis and necessity for each and every requirement will continue to be evaluated.'' \19\ According to NERC, requirements that were proposed and ultimately not included in the immediate filing will be mapped for consideration in future standards projects.
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\19\ Petition at 9.
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Notice of Proposed Rulemaking
12. On June 20, 2013, the Commission issued a Notice of Proposed Rulemaking (NOPR) proposing to approve the retirement of the 34 requirements within 19 Reliability Standards, consistent with NERC's petition.\20\ In addition, the Commission proposed to withdraw 41 outstanding Commission directives that NERC develop modifications to Reliability Standards.
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\20\ Electric Reliability Organization Proposal To Retire Requirements in Reliability Standards, Notice of Proposed Rulemaking, 78 FR 38,851 (June 28, 2013), 143 FERC 61,251 (2013) (NOPR), errata, 78 FR 41,339 (July 10, 2013).
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13. Comments on the NOPR were due by August 27, 2013. Seven entities filed comments, identified in Attachment B to the Final Rule.
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Discussion
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Retirement of Requirements
NOPR Proposal
14. In the NOPR, the Commission proposed to approve the retirement of the 34 requirements within 19 Reliability Standards identified by NERC. In the NOPR, for each of the 34 requirements, the Commission provided NERC's rationale supporting retirement, and the Commission's explanation for proposing to approve the retirement.\21\
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\21\ See NOPR, 143 FERC 61,251 at PP 17-83.
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Comments
15. Commenters unanimously support approval of the NOPR proposal. Trade Associations, CEA and ITC concur that the retirement of the 34 requirements will have little to no effect on reliability. NRECA, ISO/
RTO Council, CEA and ITC support continuance of the ``P 81'' process as a high priority going forward and the identification of additional candidate requirements for retirement or streamlining.
16. ISO/RTO Council comments that, while the criteria used by NERC to identify candidate requirements for retirement are appropriate, additional criteria would ensure that streamlining of the Reliability Standards will continue.
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Commission Determination
17. Pursuant to section 215 of the FPA, we approve the retirement of the 34 requirements within 19 Reliability Standards identified by NERC as just, reasonable, not unduly discriminatory or preferential, and in the public interest. Likewise, we approve the implementation plan and effective date set forth in NERC's petition.
18. In the March 2012 Order, the Commission explained that ``some current requirements likely provide little protection for Bulk-Power System reliability or may be redundant. The Commission is interested in obtaining views on whether such requirements could be removed from the Reliability Standards with little effect on reliability and an increase in efficiency of the ERO compliance program.'' \22\ In general, we conclude that the requirements identified by NERC for retirement satisfy the expectations set forth in the March 2012 Order; namely, the requirements proposed for retirement either: (1) Provide little protection for Bulk-Power System reliability or (2) are redundant with other aspects of the Reliability Standards.\23\
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\22\ March 2012 Order, 138 FERC 61,193 at P 81.
\23\ Further, we adopt the rationale for the retirement of each requirement as set forth in the NOPR, 143 FERC 61,251 at PP 17-83.
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19. We agree with NERC that the elimination of certain requirements that pertain to information collection or documentation will not result in a reliability gap. No commenter disputes NERC's rationale. Section 400 and Appendix 4C (Uniform Compliance Monitoring and Enforcement Program) of the NERC Rules of Procedure provide NERC and the Regional Entities the authority to enforce reporting obligations necessary to support reliability.\24\ This authority, used in the appropriate manner, justifies retiring certain documentation-related requirements that provide limited, if any, support for reliability. The retirement of such requirements should enhance the efficiency of the ERO compliance program, as well as the efficiency of individual registered entity compliance programs.
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\24\ See North American Electric Reliability Corp., 141 FERC 61,241 at P 82.
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20. We agree with commenters that NERC should continue the process of identifying additional Reliability Standards and requirements as candidates for retirement or streamlining. We support NERC's continuing efforts in this regard. Efficiencies can be gained from further consolidation or retirement of some requirements or components of requirements that are justified based on technical analysis of either existing requirements, new proposed requirements or modifications. Such analyses would take into account the interrelationship between standards and among categories of standards, in order to determine that when retirements or consolidations are made the reliability benefits of the currently effective requirements would be preserved.
21. With regard to ISO/RTO Council's comment, we will not direct NERC to develop additional criteria for identifying candidate requirements for retirement. ISO/RTO Council does not identify any specific concern or defect regarding the criteria applied by NERC.\25\ ISO/RTO Council may raise its proposal directly with NERC if it so chooses.
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\25\ Moreover, while NERC provided the criteria in the February 2013 petition, NERC also made clear that the criteria were provided only for informational purposes. See NERC Petition at 4.
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Outstanding Directives
NOPR Proposal
22. In the NOPR, the Commission proposed to withdraw 41 outstanding Commission directives that NERC develop modifications to Reliability Standards. Attachment A of the NOPR identified the 41 Commission directives, the source (i.e., Final Rule) of the directive, and a justification for the proposed withdrawal.\26\ The Commission explained that it applied the following three criteria in identifying outstanding directives for withdrawal: (1) The reliability concern underlying the outstanding directive has been addressed in some manner, rendering the directive stale; (2) the outstanding directive provides general guidance for standards development rather than a specific directive; and (3) the outstanding directive is redundant with another directive.\27\ The Commission stated that each of the 41 outstanding directives identified in Attachment A of the NOPR satisfies one or more of the criteria.
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\26\ The same table is provided as Attachment A to the Final Rule. Each directive identified in Attachment A includes a ``NERC Reference Number.'' Commission staff and NERC staff have developed a common approach to identifying and tracking outstanding Commission directives. The NERC Reference Numbers reflect this joint tracking process.
\27\ NOPR, 143 FERC 61,251 at P 86.
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Comments
23. NERC and all other commenters support the withdrawal of the 41 outstanding Commission directives.
24. Trade Associations recommend that the Commission consider alternative criteria for the withdrawal of outstanding directives to more closely align the criteria with those developed by NERC for retirement of Reliability Standard requirements. According to Trade Associations, ``simple logic suggests that the basis for retirement of requirements and withdrawal of Commission reliability directives should be consistent, if not uniform.'' \28\
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\28\ Trade Associations Comments at 7.
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Commission Determination
25. We find that it is appropriate to withdraw the 41 directives requiring that NERC develop modifications to Reliability Standards. As explained in the NOPR, the withdrawal of the identified directives should result in more efficient use of NERC's and the Commission's resources and reduce unnecessary burdens, without impacting the reliable operation of the Bulk-Power System.\29\ All commenters agree with the withdrawal of the 41 directives and the resulting efficiencies. Accordingly, we withdraw the 41 directives requiring that NERC develop modifications to Reliability Standards, identified in Attachment A of the Final Rule.
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\29\ See NOPR, 143 FERC 61,251 at PP 85-87.
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26. We are not persuaded by Trade Associations' comments that there is a need to more closely align the criteria applied by the Commission in determining whether to withdraw an outstanding reliability directive with those criteria developed by NERC for retirement of Reliability Standard requirements. Unlike the NERC review of Reliability Standard requirements, without precluding possible future Commission action, we have no plans for ongoing review of outstanding Commission reliability directives. We have reviewed the catalogue of outstanding reliability directives and have taken appropriate action in this proceeding. Further, while Trade Associations assert that such convergence of criteria is ``logical,'' we do not believe that the retirement of Reliability Standards requirements and withdrawal of a Commission directive is an apples-to-apples comparison that necessitates the suggested ``alignment.''
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Information Collection Statement
27. The Office of Management and Budget (OMB) regulations require that OMB approve certain reporting and recordkeeping (collections of information) imposed by an agency.\30\ Upon approval of a collection(s) of information, OMB will assign an OMB control number and expiration date. Respondents subject to the filing
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requirements of this rule will not be penalized for failing to respond to these collection(s) of information unless the collections of information display a valid OMB control number.
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\30\ 5 CFR 1320.11.
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28. The Commission is submitting these revisions to the reporting and recordkeeping requirements to OMB for its review and approval under section 3507(d) of the Paperwork Reduction Act of 1995.\31\ The Commission solicited comments on the need for and the purpose of the information contained in NERC's February 2013 petition and the corresponding burdens to implement NERC's proposed retirement of 34 requirements within 19 Reliability Standards. The Commission received comments generally supporting the efficiency gains and reductions in burden resulting from the retirement of specific requirements, which we address in the Final Rule. However, the Commission did not receive comments on the reporting estimates. The Final Rule approves the retirement of the 34 requirements within 19 Reliability Standards and, in addition, the withdrawal of 41 Commission directives that NERC develop modifications to Reliability Standards.
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\31\ 44 U.S.C. 3507(d).
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29. Public Reporting Burden: The estimate below for the number of respondents is based on the NERC Compliance Registry as of April 30, 2013.\32\ According to the registry, there are 132 balancing authorities (BA), 544 distribution providers (DP), 898 generator owners (GO), 859 generator operators (GOP), 56 interchange authorities (IA), 515 load serving entities (LSE), 80 planning authorities/planning coordinators (PA or PC), 677 purchasing selling entities (PSE), 21 reliability coordinators (RC), 346 transmission owners (TO), 185 transmission operators (TOP), 185 transmission planners (TP), and 93 transmission service providers (TSP).
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\32\ The estimates for the retired CIP requirements are based on February 28, 2013 registry data in order to provide consistency with burden estimates provided in the Commission's recent CIP version 5 Notice of Proposed Rulemaking in Docket No. RM13-5-000.
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30. The Commission estimates that the burden will be reduced for each requirement as detailed in the chart below, for a total estimated annual reduction in burden cost of $518,220. The Commission based the burden reduction estimates on staff experience, knowledge, and expertise.
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Estimated
average Estimated Estimated
Standard, requirement number, Type of Number of reduction in total annual total annual
and FERC Collection Number respondents respondents burden hours reduction in reduction in
\33\ per respondent burden (in cost
per year hours)
A B A x B A x B x $60/
hour \34\
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EOP-005-2, R3.1 (FERC-725A)... TOP............. 185 1 185 $11,100
FAC-008-3, R4 (FERC-725A)..... TO, GO.......... 1,151 1 1,151 69,060
FAC-008-3, R5 (FERC-725A)..... TO, GO.......... 1,151 1 1,151 69,060
FAC-010-2.1, R5 (FERC-725D)... PA.............. 80 20 1,600 96,000
FAC-011-2, R5 (FERC-725D)..... RC.............. 21 20 420 25,200
FAC-013-2, R3 (FERC-725A)..... PC.............. 80 8 640 38,400
INT-007-1, R1.2 (FERC-725A)... IA.............. 56 20 1,120 67,200
IRO-016-1, R2 (FERC-725A)..... RC.............. 21 20 420 25,200
CIP-003-3, -4, R1.2 (FERC- RC, BA, IA, TSP, 325 1 325 19,500
725B). TO, TOP, GO,
GOP,LSE.
CIP-003-3, -4, R3, R3.1, R3.2, RC, BA, IA, TSP, 325 1 325 19,500
R3.3 (FERC-725B). TO, TOP, GO,
GOP,LSE.
CIP-005-3, -4, R2.6 (FERC- RC, BA, IA, TSP, 325 4 1300 78,000
725B). TO, TOP, GO,
GOP,LSE.
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Total..................... ................ .............. .............. 8,637 518,220
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31. The above chart does not include BAL-005-0.2b, Requirement R2; CIP-003-3, -4, Requirement R4.2; CIP-007-3, -4, Requirement R7.3; FAC-
002-1, Requirement R2; PRC-010-0, Requirement R2; PRC-022-1, Requirement R2; and VAR-001-2, Requirement R5 because those requirements were found redundant with other requirements.\35\ Since the action required within them is required elsewhere, there is no change in the overall burden in retiring these requirements. Likewise, NUC-001-2, Requirement R9.1; NUC-001-2, Requirement R9.1.1; NUC-001-2, Requirement R9.1.2; NUC-001-2, Requirement R9.1.3; and NUC-001-2, Requirement R9.1.4 are not included because these requirements require that the applicable entities include ``boiler plate'' language into their agreements that is normally included in all legal contracts.\36\ Since this action will be taken regardless if it is required by a Reliability Standard, there is no reduction in burden.
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\33\ This number was calculated by adding all the applicable entities while removing double counting caused by entities registered under multiple functions.
\34\ The estimated hourly loaded cost (salary plus benefits) for an engineer is assumed to be $60/hour, based on salaries as reported by the Bureau of Labor Statistics (BLS) (http://bls.gov/oes/current/naics2_22.htm). Loaded costs are BLS rates divided by 0.703 and rounded to the nearest dollar (http://www.bls.gov/news.release/ecec.nr0.htm).
\35\ The reporting requirements in these standards are part of the FERC-725A information collection.
\36\ The reporting requirements in this standard are part of the FERC-725F information collection.
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Titles: FERC-725A, Mandatory Reliability Standards for the Bulk Power System; FERC-725B, Mandatory Reliability Standards for Critical Infrastructure Protection; FERC-725D, Facilities, Design, Connections, and Maintenance Reliability Standards; and FERC-725F, Mandatory Reliability Standards for Nuclear Plant Interface Coordination.
Action: Revisions to Collections of Information.
OMB Control Nos: 1902-0244, 1902-0248, 1902-0247, and 1902-0249.
Respondents: Business or other for-profit, and not-for-profit institutions.
Frequency of Responses: On occasion.
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Necessity of the Information: This proceeding approves the retirement of the 34 requirements within 19 Reliability Standards identified by NERC. The retirements either: (1) Provide little protection for Bulk-Power System reliability or (2) are redundant with other aspects of the Reliability Standards. In addition, we withdraw the 41 Commission directives listed in Attachment A in the interest of enhancing the efficiency of the ERO standard development and compliance programs, as well as the efficiency of individual registered entity compliance programs.
Internal review: The Commission has reviewed NERC's proposal and determined that the action is necessary to implement section 215 of the FPA. The Commission has assured itself, by means of its internal review, that there is specific, objective support for the burden reduction estimates associated with the retired information requirements.
32. Interested persons may obtain information on the reporting requirements by contacting the Federal Energy Regulatory Commission, Office of the Executive Director, 888 First Street NE., Washington, DC 20426 Attention: Ellen Brown, email: DataClearance@ferc.gov, phone: (202) 502-8663, fax: (202) 273-0873.
33. Comments concerning the information collections and the associated burden estimates should be sent to the Commission in this docket and to the Office of Management and Budget, Office of Information and Regulatory Affairs Attention: Desk Officer for the Federal Energy Regulatory Commission. For security reasons, comments should be sent by email to OMB at: oira_submission@omb.eop.gov. Please indicate the OMB Control Numbers and Docket No. RM13-8-000 in your submittal.
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Environmental Analysis
34. The Commission is required to prepare an Environmental Assessment or an Environmental Impact Statement for any action that may have a significant adverse effect on the human environment.\37\ The Commission has categorically excluded certain actions from this requirement as not having a significant effect on the human environment. Included in the exclusion are rules that are clarifying, corrective, or procedural or that do not substantially change the effect of the regulations being amended.\38\ The actions proposed here fall within this categorical exclusion in the Commission's regulations.
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\37\ Regulations Implementing the National Environmental Policy Act, Order No. 486 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs. Regulations Preambles 1986-1990 30,783 (1987).
\38\ 18 CFR 380.4(a)(2)(ii) (2013).
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Regulatory Flexibility Act
35. The Regulatory Flexibility Act of 1980 (RFA) \39\ generally requires a description and analysis of final rules that will have significant economic impact on a substantial number of small entities. The RFA mandates consideration of regulatory alternatives that accomplish the stated objectives of a proposed rule and that minimize any significant economic impact on a substantial number of small entities. The Small Business Administration's Office of Size Standards develops the numerical definition of a small business.\40\ The Small Business Administration has established a size standard for electric utilities, stating that a firm is small if, including its affiliates, it is primarily engaged in the transmission, generation and/or distribution of electric energy for sale and its total electric output for the preceding twelve months did not exceed four million megawatt hours.\41\
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\39\ 5 U.S.C. 601-612.
\40\ 13 CFR 121.101.
\41\ 13 CFR 121.201, Sector 22, Utilities & n.1.
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36. The Commission estimates the total reduction in burden for all small entities to be $32,460. The Commission estimates that small planning authorities/planning coordinators will see a reduction of $1,680 per entity per year, greater than for other types of affected small entities.\42\ The Commission does not consider a reduction of $1,680 per year to be a significant economic impact. The Commission believes that, in addition to the estimated economic impact, the proposed retirement of the 34 requirements of mandatory Reliability Standards will provide small entities with relief from having to track compliance with these provisions and preparing to show compliance in response to a potential compliance audit by a Regional Entity or other regulator.
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\42\ The burden reduction for planning authorities/planning coordinators is based on the retirement of FAC-010-2.1, Requirement R5 and FAC-013-2, Requirement R3. Based on the NERC Compliance Registry and Energy Information Administration Form EIA-861 data, the Commission estimates that 5 out of the 80 planning authorities/
planning coordinators meet the definition of a small entity.
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37. Based on the above, the Commission certifies that the changes to the Reliability Standards will not have a significant impact on a substantial number of small entities. Accordingly, no regulatory flexibility analysis is required.
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Document Availability
38. In addition to publishing the full text of this document in the Federal Register, the Commission provides all interested persons an opportunity to view and/or print the contents of this document via the Internet through FERC's Home Page (http://www.ferc.gov) and in FERC's Public Reference Room during normal business hours (8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street NE., Room 2A, Washington DC 20426.
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Effective Date and Congressional Notification
41. These regulations are effective January 21, 2014. The Commission has determined that, with the concurrence of the Administrator of the Office of Information and Regulatory Affairs of OMB, this rule is not a ``major rule'' as defined in section 351 of the Small Business Regulatory Enforcement Fairness Act of 1996.
By the Commission.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
Note: Attachment A will not appear in the Code of Federal Regulations.
Attachment A
Withdrawn Commission Directives
Page 73430
----------------------------------------------------------------------------------------------------------------
No. Standard Order No. Para Directive Justification
----------------------------------------------------------------------------------------------------------------
Group A--The reliability concern underlying the outstanding directive has been addressed in some manner,
rendering the directive stale
----------------------------------------------------------------------------------------------------------------
1........... BAL-006....................... 693 P 428 ``Add measures NERC replaced
concerning the levels of non-
accumulation of compliance with
large inadvertent violation
interchange severity levels
balances and (VSLs). NERC has
levels of non- designated VSLs
compliance.'' for BAL-006.
(NERC Reference
No. 10036).
2........... EOP-001....................... 693 P 565 ``The Commission The VSLs listed in
agrees with ISO- EOP-001-2.1b and
NE that the the Reliability
Reliability Standard Audit
Standard should Worksheet for EOP-
be clarified to 001 require
indicate that the evidence of this
actual emergency consideration.
plan elements,
and not the ``for
consideration''
elements of
Attachment 1,
should be the
basis for
compliance.
However, all of
the elements
should be
considered when
the emergency
plan is put
together.'' (NERC
Reference No.
10065).
3........... INT-004....................... 693 P 843 ``Consider adding NERC replaced
levels of non- levels of non-
compliance to the compliance with
standard.'' (NERC VSLs. VSLs for
Reference No. INT-004 have been
10134). developed and
approved by the
Commission.
4........... INT-005....................... 693 P 848 ``Consider adding NERC replaced
levels of non- levels of non-
compliance to the compliance with
standard.'' (NERC VSLs. VSLs for
Reference No. INT-005 have been
10135). developed and
approved by the
Commission.
5........... MOD-010 through MOD-025....... 693 P 1147 ``Direct the ERO The concern
to use its underlying the
authority directive has
pursuant to Sec. been addressed
39.2(d) of our through section
regulations to 1600 (Requests
require users, for Data or
owners and Information) of
operators to NERC's Rules of
provide to the Procedure. The
Regional Entity Commission
the information approved Section
related to data 1600 of NERC's
gathering, data Rules on February
maintenance, 21, 2008.
reliability
assessments and
other process-
type functions.''
(NERC Reference
No. 10266).
6........... MOD-010....................... 693 P 1152 ``Address critical This directive is
energy no longer
infrastructure necessary in
confidentiality light of section
issues as part of 1500
the standard (Confidential
development Information) of
process.'' (NERC NERC's Rules of
Reference No. Procedure
10268). addressing
treatment of
confidential
information.
7........... MOD-010....................... 693 P 1163 ``Direct the ERO The concern
to develop a Work underlying the
Plan that will directive has
facilitate been addressed
ongoing through NERC's
collection of the Reliability
steady-state Standards
modeling and Development Plan:
simulation data 2013-2015. This
specified in MOD- plan was provided
011-0.'' (NERC to the Commission
Reference No. in an
10270). informational
filing on
December 31,
2012. It contains
an action plan to
merge, upgrade,
and expand
existing
requirements in
the modeling data
(MOD-010 through
MOD-015) and
demand data (MOD-
016 through MOD-
021) Reliability
Standards.
8........... PRC-017....................... 693 P 1546 ``Require Requirement R2 of
documentation PRC-017 already
identified in requires affected
Requirement R2 be entities to
routinely provide
provided to NERC documentation of
or the regional the special
entity that protection system
includes a program and its
requirement that implementation to
documentation the appropriate
identified in Regional
Requirement R2 Reliability
shall be Organization and
routinely NERC within 30
provided to the calendar days of
ERO.'' (NERC a request. If
Reference No. either the
10363). Regional Entity
or NERC determine
that they need
and will use the
information on a
regular schedule,
they have the
authority to
establish a
schedule under
the current
requirement.
9........... Glossary...................... 693 P 1895 ``Modification to The concern
the glossary that underlying the
enhances the directive has
definition of been addressed
``generator through the NERC
operator'' to registration
reflect concerns process. See
of the commenters Order No. 693 at
``to include P 145.
aspects unique to
ISOs, RTOs and
pooled resource
organizations''.
'' (NERC
Reference No.
10005).
Page 73431
10.......... Glossary...................... 693 P 1895 ``Modification to The concern
the glossary that underlying the
enhances the directive has
definition of been addressed
``transmission through the NERC
operator'' to registration
reflect concerns process. See
of the commenters Order No. 693 at
``to include P 145.
aspects unique to
ISOs, RTOs and
pooled resource
organizations''.
'' (NERC
Reference No.
10006).
----------------------------------------------------------------------------------------------------------------
Group B--The outstanding directive provides general guidance for standards development rather than a specific
directive
----------------------------------------------------------------------------------------------------------------
11.......... BAL-005....................... 693 P 406 ``The Commission This paragraph is
understands that not a directive
it may be to change or
technically modify a
possible for DSM standard.
to meet
equivalent
requirements as
conventional
generators and
expects the
Reliability
Standards
development
process to
provide the
qualifications
they must meet to
participate.''
(NERC Reference
No. 10033).
12.......... BAL-006....................... 693 P 438 ``Examine the WECC This paragraph is
time error not a directive
correction to change or
procedure as a modify a
possible guide . standard.
. . the
Commission asks
the ERO, when
filing the new
Reliability
Standard, to
explain how the
new Reliability
Standard
satisfies the
Commission's
concerns.'' (NERC
Reference No.
10037).
13.......... COM-001....................... 693 P 507 ``Although we This paragraph is
direct that the not a directive
regional to change or
reliability modify a
organization standard.
should not be the
compliance
monitor for
NERCNet, we leave
it to the ERO to
determine whether
it is the
appropriate
compliance
monitor or if
compliance should
be monitored by
the Regional
Entities for
NERCNet User
Organizations.''
(NERC Reference
No. 10051).
14.......... MOD-001....................... 729 P 20 ``We encourage the This paragraph is
ERO to consider not a directive
Midwest ISO's and to change or
Entegra's modify a
comments when standard.
developing other
modifications to
the MOD
Reliability
Standards
pursuant to the
EROs Reliability
Standards
development
procedure.'' See
also P 198-199
(NERC Reference
No. 10216).
15.......... MOD -001, -004, -008, -028, - 729 P 160 ``In developing This paragraph is
029, -030. the modifications not a directive
to the MOD to change or
Reliability modify a
Standards standard.
directed in this
Final Rule, the
ERO should
consider
generator
nameplate ratings
and transmission
line ratings
including the
comments raised
by Entegra and
ISO/RTO
Council.'' Also
see P 154 (NERC
Reference No.
10207).
16.......... MOD-001....................... 729 P 179 ``The Commission This paragraph is
directs the ERO not a directive
to consider to change or
Entegra's request modify a
regarding more standard.
frequent updates
for constrained
facilities
through its
Reliability
Standards
development
process.'' (see
Order No. 729 at
P 177 for
Entegra's
comments). (NERC
Reference No.
10211).
17.......... MOD-028....................... 729 P 231 ``The Commission This paragraph
directs the ERO clarifies the
to develop a Commission's
modification sub- understanding of
requirement R2.2 the phrase
pursuant to its ``adjacent and
Reliability beyond
Standards Reliability
development Coordination
process to area.'' Since the
clarify the Commission's
phrase `adjacent understanding of
and beyond the language is
Reliability clearly
Coordination expressed, and
areas.''' (NERC the matter has
Reference No. little impact on
10219). reliability,
there is no
reason to go
forward with the
directive.
Page 73432
18.......... MOD-028....................... 729 P 234 ``The Commission This paragraph is
agrees that a not a directive
graduated time to change or
frame for modify a
reposting could standard.
be reasonable in
some situations.
Accordingly, the
ERO should
consider this
suggestion when
making future
modifications to
the Reliability
Standards.''
(NERC Reference
No. 10220).
19.......... MOD-029....................... 729 P 246 ``The ERO should This paragraph is
consider Puget not a directive
Sound's concerns to change or
on this issue modify a
when making standard.
future
modifications to
the Reliability
Standards.'' See
also P 245 (NERC
Reference No.
10222).
20.......... MOD-030....................... 729 P 269 ``The Commission This paragraph is
also directs the not a directive
ERO to make to change or
explicit such modify a
effective date standard.
detail in any
future version of
this or any other
Reliability
Standard.'' (NERC
Reference No.
10223).
21.......... MOD-024....................... 693 P 1310 ``Similarly, we This paragraph is
respond to not a directive
Constellation to change or
that any modify a
modification of standard.
the Levels of Non-
Compliance in
this Reliability
Standard should
be reviewed in
the ERO
Reliability
Standards
development
process.'' (NERC
Reference No.
10318).
22.......... PER-002....................... 693 P 1375 ``Training This paragraph is
programs for not a directive
operations to change or
planning and modify a
operations standard.
support staff
must be tailored
to the needs of
the function, the
tasks performed
and personnel
involved.'' (NERC
Reference No.
10329).
23.......... VAR-001....................... 693 P 1863 ``The Commission This paragraph is
expects that the not a directive
appropriate power to change or
factor range modify a
developed for the standard.
interface between
the bulk electric
system and the
load-serving
entity from VAR-
001-1 would be
used as an input
to the
transmission and
operations
planning
Reliability
Standards.''
(NERC Reference
No. 10441).
24.......... VAR-001....................... 693 P 1869 ``We recognize This paragraph is
that our proposed not a directive
modification does to change or
not identify what modify a
definitive standard.
requirements the
Reliability
Standard should
use for
established
limits and
sufficient
reactive
resources.''
(NERC Reference
No. 10434).
25.......... TPL and FAC series............ 705 P 49 ``Direct that any This paragraph
revised TPL provides guidance
Reliability on an ongoing
Standards must implementation
reflect issue and is not
consistency in a directive to
the lists of change or modify
contingencies.'' a standard.
(NERC Reference
No. 10601).
----------------------------------------------------------------------------------------------------------------
Group C--The outstanding directive is redundant with another directive
----------------------------------------------------------------------------------------------------------------
26.......... MOD-012....................... 693 P 1177 ``Direct the ERO This directive is
to use its redundant with
authority the directive in
pursuant to Sec. paragraph 1147,
39.2(d) of our which has already
regulations to been addressed
require users, and is reflected
owners, and in section A
operators to above.
provide to the
Regional Entities
the information
related to data
gathering, data
maintenance,
reliability
assessments and
other process
type functions.''
(NERC Reference
No. 10275).
27.......... MOD-012....................... 693 P 1177 ``Develop a Work This directive is
Plan and submit a redundant with
compliance filing the directive in
that will paragraph 1163,
facilitate which has already
ongoing been addressed
collection of the and is reflected
dynamics system in section A
modeling and above.
simulation
data.'' (NERC
Reference No.
10279).
28.......... MOD-012....................... 693 P 1181 ``Direct the ERO This directive is
to address redundant with
confidentiality the directive in
issues and modify paragraph 1152,
the standard as which has already
necessary through been addressed
its Reliability and is reflected
Standards in section A
development above.
process.'' (NERC
Reference No.
10277).
Page 73433
29.......... MOD-013....................... 693 P 1200 ``Direct the ERO This directive is
to develop a Work redundant with
Plan that will the directive in
facilitate paragraph 1163,
ongoing which has already
collection of the been addressed
dynamics system and is reflected
modeling and in section A
simulation data above.
specified in MOD-
013-1, and submit
a compliance
filing containing
this Work Plan to
the Commission.''
(NERC Reference
No. 10283).
30.......... MOD-014....................... 693 P 1212 ``Direct the ERO This directive is
to use its redundant with
authority the directive in
pursuant to Sec. paragraph 1147,
39.2(d) of our which has already
regulations to been addressed
require users, and is reflected
owners and in section A
operators to above.
provide the
validated models
to regional
reliability
organizations.''
(NERC Reference
No. 10288).
31.......... MOD-014....................... 693 P 1212 ``Direct the ERO This directive is
to develop a Work redundant with
Plan that will the directive in
facilitate paragraph 1163,
ongoing which has already
validation of been addressed
steady-state and is reflected
models and submit in section A
a compliance above.
filing containing
the Work Plan
with the
Commission.''
(NERC Reference
No. 10289).
32.......... MOD-015....................... 693 P 1221 ``Direct the ERO This directive is
to use its redundant with
authority the directive in
pursuant to Sec. paragraph 1147,
39.2(d) of our which has already
regulations to been addressed
require users, and is reflected
owners and in section A
operators to above.
provide to the
Regional Entity
the validated
dynamics system
models while MOD-
015-0 is being
modified.'' (NERC
Reference No.
10291).
33.......... MOD-015....................... 693 P 1221 ``Require the ERO This directive is
to develop a Work redundant with
Plan that will the directive in
enable continual paragraph 1163,
validation of which has already
dynamics system been addressed
models and submit and is reflected
a compliance in section A
filing with the above.
Commission.''
(NERC Reference
No. 10292).
34.......... MOD-017....................... 693 P 1247 ``Provide a Work This directive is
Plan and redundant with
compliance filing the directive in
regarding the paragraph 1163,
collection of which has already
information been addressed
specified under and is reflected
standards that in section A
are deferred, in above.
this instance,
data on the
accuracy, error
and bias of the
forecast.'' (NERC
Reference
No.10299).
35.......... MOD-018....................... 693 P 1264 ``Require the ERO This directive is
to provide a Work redundant with
Plan and the directive in
compliance filing paragraph 1163,
regarding which has already
collection of been addressed
information and is reflected
specified under in section A
standards that above.
are deferred, and
believe there
should be no
difficulties
complying with
this Reliability
Standard.'' (NERC
Reference No.
10303).
36.......... MOD-019....................... 693 P 1275 ``Direct the ERO This directive is
to use its redundant with
authority the directive in
pursuant to Sec. paragraph 1147,
39.2(d) of our which has already
regulations to been addressed
require users, and is reflected
owners and in section A
operators to above.
provide to the
Regional Entity
information
related to
forecasts of
interruptible
demands and
direct control
load
management.''
(NERC Reference
No. 10305).
37.......... MOD-021....................... 693 1297 ``Direct the ERO This directive is
to provide a Work redundant with
Plan and the directive in
compliance filing paragraph 1163,
regarding which has already
collection of been addressed
information and is reflected
specified under in section A
related standards above.
that are
deferred, and
believe there
should be no
difficulty
complying with
this Reliability
Standard.'' (NERC
Reference No.
10309).
38.......... MOD-021....................... 693 P 1297 ``Direct the ERO This directive is
to use its redundant with
authority the directive in
pursuant to Sec. paragraph 1147,
39.2(d) of our which has already
regulations to been addressed
require users, and is reflected
owners and in section A
operators to above.
provide to the
Regional Entity
the information
required by this
Reliability
Standard.'' (NERC
Reference No.
10313).
Page 73434
39.......... MOD-024....................... 693 P 1308 ``In order to This directive is
continue redundant with
verifying and the directive in
reporting gross paragraph 1147,
and net real which has already
power generating been addressed
capability needed and is reflected
for reliability in section A
assessment and above.
future plans, we
direct the ERO to
develop a Work
Plan and submit a
compliance
filing.'' (NERC
Reference No.
10317).
40.......... MOD-024....................... 693 P 1312 ``Direct the ERO This directive is
to use its redundant with
authority the directive in
pursuant to Sec. paragraph 1147,
39.2(d) of our which has already
regulations to been addressed
require users, and is reflected
owners and in section A
operators to above.
provide this
information.''
(NERC Reference
No. 10314).
41.......... MOD-025....................... 693 P 1320 ``In order to This directive is
continue redundant with
verifying and the directive in
reporting gross paragraph 1147,
and net reactive which has already
power generating been addressed
capability needed and is reflected
for reliability in section A
assessment and above.
future plans, we
direct the ERO to
develop a Work
Plan as defined
in the Common
Issues section.''
(NERC Reference
No. 10321).
----------------------------------------------------------------------------------------------------------------
Note: Attachment B will not appear in the Code of Federal Regulations.
Attachment B
Commenters on the Notice of Proposed Rulemaking
The American Public Power Association, Edison Electric Institute, Electricity Consumers Resource Council, Electric Power Supply Association, Large Public Power Council, and Transmission Access Policy Group (collectively, Trade Associations)
Canadian Electricity Association (CEA)
Dominion Resources Services, Inc., on behalf of Virginia Electric and Power Company, doing business as Dominion Virginia Power; Dominion Nuclear Connecticut, Inc.; Dominion Energy Brayton Point, LLC; Dominion Energy Manchester Street, Inc.; Elwood Energy, LLC; Kincaid Generation, LLC; and Fairless Energy, LLC
International Transmission Company d/b/a ITCTransmission, Michigan Electric Transmission Company, LLC, ITC Midwest LLC and ITC Great Plains, LLC (ITC)
ISO/RTO Council
National Rural Electric Cooperative Association (NRECA)
North American Electric Reliability Corporation (NERC)
FR Doc. 2013-28516 Filed 12-5-13; 8:45 am
BILLING CODE 6717-01-P
