Applicability of Federal Power Act Section 215 to Qualifying Small Power Production and Cogeneration Facilities, 14254-14256 [E7-5285]
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Federal Register / Vol. 72, No. 58 / Tuesday, March 27, 2007 / Proposed Rules
publishing this appendix of suggested
guidelines. It is recommended that all credit
unions develop a program to prepare for a
catastrophic act. The program should be
developed with oversight and approval of the
board of directors. It is recommended the
program address the following five elements:
(1) A business impact analysis to evaluate
potential threats;
(2) A risk assessment to determine critical
systems and necessary resources;
(3) A written plan addressing:
(i) Persons with authority to enact the plan;
(ii) Preservation and ability to restore vital
records;
(iii) A method for restoring of vital member
services through identification of alternate
operating location(s) or mediums to provide
services, such as telephone centers, shared
service centers, agreements with other credit
unions, or other appropriate methods;
(iv) Communication methods for
employees and members;
(v) Notification of regulators as addressed
in 12 CFR 748.1(b);
(vi) Training and documentation of
training to ensure all employees and
volunteer officials are aware of procedures to
follow in the event of destruction of vital
records or loss of vital member services; and
(vii) Testing procedures, including a means
for documenting the testing results.
(4) Internal controls for reviewing the plan
at least annually and for revising the plan as
circumstances warrant, for example, to
address changes in the credit union’s
operations; and
(5) Annual testing.
[FR Doc. E7–5070 Filed 3–26–07; 8:45 am]
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
18 CFR Part 292
[Docket No. RM07–11–000]
Applicability of Federal Power Act
Section 215 to Qualifying Small Power
Production and Cogeneration Facilities
March 16, 2007.
Federal Energy Regulatory
Commission, DOE.
ACTION: Notice of Proposed Rulemaking.
jlentini on PROD1PC65 with PROPOSAL
AGENCY:
SUMMARY: The Federal Energy
Regulatory Commission (Commission) is
proposing to amend its regulations
governing qualifying small power
production and cogeneration facilities,
to eliminate the exemption from the
requirements of section 215 of the
Federal Power Act. From a reliability
perspective, there does not appear to be
a meaningful distinction between QF
and non-QF generators that would
warrant exemption of QFs from
mandatory Reliability Standards.
16:55 Mar 26, 2007
Jkt 211001
Comments are due April 17,
2007.
You may submit comments,
identified by Docket No. RM07–11–000,
by one of the following methods:
• Agency Web site: https://ferc.gov.
Follow the instructions for submitting
comments via the eFiling link found in
the Comment Procedures section of the
Preamble.
• Mail: Commenters unable to file
comments electronically must mail or
hand deliver an original and 14 copies
of their comments to: Federal Energy
Regulatory Commission, Secretary of the
Commission, 888 First Street, NE.,
Washington, DC, 20426. Refer to the
Comment Procedures section of the
preamble for additional information on
how to file paper comments.
FOR FURTHER INFORMATION CONTACT:
Paul Singh (Technical Information),
Office of Energy Markets and
Reliability, Federal Energy Regulatory
Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502–
8576.
Samuel Higginbottom (Legal
Information), Office of the General
Counsel, Federal Energy Regulatory
Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502–
8561.
ADDRESSES:
SUPPLEMENTARY INFORMATION:
Introduction
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DATES:
1. The Commission is proposing to
amend the exemptions available to
qualifying facilities (QFs) so that they
would no longer be exempt from newlyadded section 215 of the Federal Power
Act (FPA).1 From a reliability
perspective, there does not appear to be
a meaningful distinction between QF
and non-QF generators that would
warrant exemption of QFs from
mandatory Reliability Standards. The
benefit of this proposal will be
increased reliability of the North
American Bulk-Power System.
Background
2. On August 8, 2005, the Electricity
Modernization Act of 2005, which is
Title XII, Subtitle A, of the Energy
Policy Act of 2005 (EPAct 2005), was
enacted into law.2 EPAct 2005 adds a
new section 215 to the Federal Power
Act (FPA),3 which requires a
Commission-certified Electric
Reliability Organization (ERO) to
develop mandatory and enforceable
Reliability Standards, which are subject
1 16
U.S.C. 824o.
Policy Act of 2005, Pub. L. No 109–58,
Title XII, Subtitle A, 119 Stat. 594, 941 (2005).
3 16 U.S.C. 824o.
2 Energy
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to Commission review and approval.
Once approved, the Reliability
Standards may be enforced by the ERO,
subject to Commission oversight.
3. On February 3, 2006, the
Commission issued Order No. 672,
which implements newly-added section
215 and provides specific processes for
the certification of an entity as the ERO,
the development and approval of
mandatory Reliability Standards, and
the compliance with and enforcement of
approved Reliability Standards.4 On
April 4, 2006, North American Electric
Reliability Corporation (NERC) made
two filings: (1) An application for
certification of NERC as the ERO; and
(2) a petition for Commission approval
of Reliability Standards, with eight
regional differences and a glossary of
terms. On July 20, 2006, the
Commission issued an order certifying
NERC as the ERO.5 On October 20,
2006, the Commission issued a Notice of
Proposed Rulemaking proposing to
approve 83 of 107 proposed Reliability
Standards.6
4. In response to the Reliability
NOPR, Cogeneration Association of
California and the Energy Producers and
Users Coalition (CAC/EPUC) filed
comments pointing out that QFs are
exempt from section 215 by virtue of
section 292.601(c) of the Commission’s
regulations.7 CAC/EPUC suggest that the
Commission intentionally exempted
QFs from section 215. CAC/EPUC
explain that in Order No. 671 issued on
February 2, 2006,8 the Commission
stated that it saw no reason to exempt
QFs from the newly added FPA sections
220, 221 and 222,9 and explicitly
excluded those sections of the FPA from
the QF exemptions contained in section
292.601 of its regulations, while making
no similar mention of section 215.
5. Section 215(b) grants the
Commission jurisdiction over ‘‘all users,
owners, and operators of the bulk-power
system’’ for ‘‘purposes of approving
4 Rules Concerning Certification of the Electric
Reliability Organization; Procedures for the
Establishment, Approval and Enforcement of
Electric Reliability Standards, Order No. 672, 71 FR
8662 (Feb. 17, 2006), FERC Stats. & Regs. ¶ 31,204
(2006), order on reh’g, Order No. 672–A, 71 FR
19814 (Apr. 18, 2006), FERC Stats. & Regs. ¶ 31,212
(2006).
5 North American Electric Reliability Corporation,
116 FERC ¶ 61,062 (2006).
6 Mandatory Reliability Standards for the BulkPower Market, 72 FR 64770 (Oct. 20, 2006), FERC
Stats. & Regs. ¶ 32,608 (2006) (Reliability NOPR).
7 18 CFR 292.601(c).
8 Revised Regulations Governing Small Power
Production and Cogeneration Facilities, Order No.
671, 71 FR 7852 (Feb. 2, 2006), FERC Stats. & Regs.
¶ 31,203 (2006), order on rehearing, Order No. 771–
A, 71 FERC 30583 (May 22, 2006), FERC Stats. &
Regs. ¶ 31.219 (2006).
9 16 U.S.C. 824t–v.
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reliability standards. . . . and enforcing
compliance with [section 215]’’, and
further provides that ‘‘[a]ll users,
owners and operators of the bulk-power
system shall comply with reliability
standards that take effect under this
section.’’ 10 Given the statutory directive
that all users, owners and operators of
the bulk-power system must comply
with the reliability standards that take
effect under section 215, it may no
longer be appropriate to allow QFs a
continued exemption from compliance
with the newly-adopted mandatory and
enforceable Reliability Standards that
apply to generator owners and
operators.11 Moreover, from a reliability
perspective, there would seem to be no
meaningful distinction between QF and
non-QF generators that would warrant
exemption of QFs from the newlyadopted mandatory Reliability
Standards. Indeed, QF generators would
seem to affect the reliability of the BulkPower System as much as non-QF
generators, and so QF generators should
be subject to the newly-adopted
mandatory Reliability Standards. In this
regard, we note that while many QFs are
small facilities, others are quite large.
We see no justification for large
facilities to be exempt from the newlyadopted mandatory and enforceable
Reliability Standards. Accordingly, we
are proposing to amend § 292.601(c)(3)
to add section 215 to the list of FPA
sections from which QFs are not
exempt.
6. The threshold for applicability of
the Reliability Standards to generating
units is 20 MVA (gross nameplate
rating) for an individual generating unit,
or 75 MVA (gross nameplate rating) in
aggregate for a generating plant.12 In
addition, the Reliability Standards are
applicable to: any generator, regardless
of size that is a blackstart unit material
to and designated as part of a
transmission operator entity’s
restoration plan; or any generator,
regardless of size, that is material to the
reliability of the bulk-power system; the
determination to include an otherwise
exempt facility would be made on a
facility-by-facility basis by the ERO or
Regional Entity. However, an entity that
disagrees with NERC’s determination to
place it in the compliance registry may
submit a challenge in writing to NERC
10 16 U.S.C. 824o(b). Section 215(b) also states
that entities described in section 201(f), entities that
are otherwise exempt from Part II of the FPA unless
a provision is specifically applicable to those
entities, are subject to section 215. Id.
11 Mandatory Reliability Standards for the BulkPower System, Order No. 693, FERC Stats. & Regs.
¶ 31,242 (2007) (issued concurrently with this
NOPR).
12 Id. A 20 MVA threshold corresponds to 20 MW,
if a unit is operating at a unity power factor.
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16:55 Mar 26, 2007
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and, if still not satisfied, may lodge an
appeal with the Commission. Therefore,
a small entity may appeal to the
Commission if it believes it should not
be required to comply with the
Reliability Standards. According to the
Energy Information Administration
(EIA), the total universe of qualifying
facilities is 3,265 entities. Of these,
2,423 entities are below 20 MW (which,
as noted above, roughly corresponds to
the 20 MVA standard for applicability of
the reliability standards), which leaves
842 entities that could be potentially
impacted by the reliability standards. Of
these 842 entities, only 745 are listed by
EIA as being interconnected to the grid.
Thus, out of a total of 3265 QFs, only
745, or 23 percent of all QFs would
meet the generally applicable threshold
of 20 MVA (although some other QFs
may be specified as either blackstart
units material to and designated as part
of a transmission operator entity’s
restoration plan or as generators
material to the reliability of the bulkpower system). In sum, while there
would seem to be no basis to exempt all
QFs from the mandatory and
enforceable Reliability Standards, as a
result of the threshold for applicability
of the Reliability Standards to
generating units, and based on EIA data,
it appears that less than a quarter of all
QFs will, in fact, be affected by our
proposal to eliminate the QF exemption
from the requirements of section 215 of
the FPA.
Information Collection Statement
7. The Paperwork Reduction Act
(PRA) 13 requires each Federal agency to
seek and obtain OMB approval before
undertaking a collection of information
directed to ten or more persons, or
continuing a collection for which the
Office of Management and Budget
(OMB) approval and validity of the
control number are about to expire.14
The PRA defines the phrase ‘‘collection
of information’’ to be the ‘‘obtaining,
causing to be obtained, soliciting, or
requiring the disclosure to third parties
or the public, of facts or opinions by or
for an agency, regardless of form or
format, calling for either—(i) answers to
identical questions posed to, or
identical reporting or recordkeeping
requirements imposed on ten or more
persons, other than agencies,
instrumentalities, or employees of the
United States; or (ii) answers to
questions posed to agencies,
instrumentalities, or employees of the
United States which are to be used for
13 44
14 44
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U.S.C. 3501–3520.
U.S.C. 3502(3)(A)(i), 44 U.S.C. 3507(a)(3).
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14255
general statistical purposes.’’ 15 OMB
regulations require approval of certain
information collection requirements
imposed by agency rules.16
8. As noted above, the Commission is
proposing to amend the exemption
available to qualifying facilities from the
requirements of section 215 of the FPA.
Because the Commission is not
proposing information collections in
this rulemaking, it is not subject to OMB
review under the PRA. However, the
Commission will submit for
informational purposes only a copy of
this rulemaking to OMB.
Environmental Analysis
9. 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.17 The Commission has
categorically excluded certain actions
from this requirement as not having a
significant effect on the human
environment. As explained above, this
proposed rule carries out the intent of
legislation, specifically section 215 of
the FPA. It lifts an exemption and thus
makes section 215 of the FPA applicable
to QFs; it does not substantially change
the effect of the legislation. Accordingly,
no environmental consideration is
necessary.18
Regulatory Flexibility Act Analysis
10. The Regulatory Flexibility Act of
1980 (RFA) 19 generally requires a
description and analysis of rules that
will have significant economic impact
on a substantial number of small
entities. The total universe of qualifying
facilities is 3,265 entities. Of these,
2,423 entities are below 20 MW (the
threshold for applicability of the
Reliability Standards is 20 MVA for an
individual generating unit, or 75 MVA
in aggregate for a generating plant 20)
which leaves 842 entities that could be
potentially impacted by the reliability
standards. Of these 842 entities, only
745 are listed as being interconnected to
the grid. Accordingly, we estimate that
out of a total of 3265 QFs, only 745, or
23 per cent of all QFs would likely be
affected by the change in regulations
proposed here. Thus, most, if not all,
QFs affected by this rule do not fall
15 44
U.S.C. 3502(3)(A).
CFR 1320.11.
17 Regulations Implementing the National
Environmental Policy Act, Order No. 486, 52 FR
47897 (Dec. 17, 1987), FERC Stats. & Regs. ¶ 30,783
(1987).
18 18 CFR 380.4(a)(2)(ii).
19 5 U.S.C. 601–12.
20 The 20 MVA threshold corresponds to 20 MW,
if a unit is operating at a unity power factor.
16 5
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Federal Register / Vol. 72, No. 58 / Tuesday, March 27, 2007 / Proposed Rules
within the definition of small entities,21
nor do they meet the threshold criteria
for applicability of the RFA to electric
utilities established by the Small
Business Administration, which is
based on a size standard of 4 million
MWh.22
Comment Procedures
11. The Commission invites interested
persons to submit comments on the
change proposed in this notice to be
adopted, including any related matters
or alternative proposals that
commenters may wish to discuss.
Comments are due April 16, 2007.
Comments must refer to Docket No.
RM07–11–000, and must include the
commenter’s name, the organization
they represent, if applicable, and their
address in their comments. Comments
and reply comments may be filed either
in electronic or paper format.
12. Comments and reply comments
may be filed electronically via the
eFiling link on the Commission’s Web
site at https://www.ferc.gov. The
Commission accepts most standard
word processing formats and
commenters may attach additional files
with supporting information in certain
other file formats. Commenters filing
electronically do not need to make a
paper filing. Commenters that are not
able to file comments and reply
comments electronically must send an
original and 14 copies of their
comments to: Federal Energy Regulatory
Commission, Secretary of the
Commission, 888 First Street, NE.,
Washington, DC, 20426.
13. All comments and reply
comments will be placed in the
Commission’s public files and may be
viewed, printed, or downloaded
remotely as described in the Document
Availability section below. Commenters
on this proposal are not required to
serve copies of their comments and
reply comments on other commenters.
Document Availability
14. In addition to publishing the full
text of this document in the Federal
Register, the Commission provides all
interested persons an opportunity to
jlentini on PROD1PC65 with PROPOSAL
21 The
RFA definition of ‘‘small entity’’ refers to
the definition provided in the Small Business Act,
which defines a ‘‘small business concern’’ as a
business that is independently owned and operated
and that is not dominant in its field of operation.
See 15 U.S.C. 632.
22 The Small Business Size Standard component
of the North American Industry Classification
System (NAICS) defines a small utility as one that,
including its affiliates, is primarily engaged in
generation, transmission, and/or distribution of
electric energy for sale and whose total electric
output for the preceding fiscal years did not exceed
4 million MWh. 13 CFR 121.201.
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16:55 Mar 26, 2007
Jkt 211001
view and/or print the contents of this
document via the Internet through the
Commission’s Home Page (https://
www.ferc.gov) and in the Commission’s
Public Reference Room during normal
business hours (8:30 a.m. to 5 p.m.
Eastern time) at 888 First Street, NE.,
Room 2A, Washington DC 20426.
15. From the Commission’s Home
Page on the Internet, this information is
available in the Commission’s document
management system, eLibrary. The full
text of this document is available on
eLibrary in PDF and Microsoft Word
format for viewing, printing, and/or
downloading. To access this document
in eLibrary, type the docket number
excluding the last three digits of this
document in the docket number field.
16. User assistance is available for
eLibrary and the Commission’s Web site
during normal business hours. For
assistance, please contact FERC Online
Support at 1–866–208–3676 (toll free) or
(202) 502–8222 (e-mail at
FERCOnlineSupport@FERC.gov), or the
Public Reference Room at (202) 502–
8371, TTY (202) 502–8659 (e-mail at
public.referenceroom@ferc.gov).
List of Subjects in 18 CFR Part 292
Electric power, Electric power plants,
Electric utilities, Natural gas, Reporting
and recordkeeping requirements.
By direction of the Commission.
Philis J. Posey,
Acting Secretary.
In consideration of the foregoing, the
Commission proposes to amend part
292, Chapter I, Title 18, Code of Federal
Regulations, to read as follows.
PART 292—REGULATIONS UNDER
SECTIONS 201 AND 210 OF THE
PUBLIC UTILITY REGULATORY
POLICIES ACT OF 1978 WITH REGARD
TO SMALL POWER PRODUCTION AND
COGENERATION
1. The authority citation for part 292
continues to read as follows:
Authority: 16 U.S.C. 791a–825r, 2601–
2645; 31 U.S.C. 9701; 42 U.S.C. 7101–7352.
2. In § 292.601 paragraph (c)(3) is
revised to read as follows:
§ 292.601 Exemption to qualifying facilities
from the Federal Power Act.
*
*
*
*
*
(c) * * *
(3) Sections 202(c), 210, 211, 212, 213,
214, 215, 220, 221 and 222;
*
*
*
*
*
[FR Doc. E7–5285 Filed 3–26–07; 8:45 am]
BILLING CODE 6717–01–P
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 204 and 244
RIN 0750–AF61
Defense Federal Acquisition
Regulation Supplement; Closeout of
Contract Files (DFARS Case 2006–
D045)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Proposed rule with request for
comments.
AGENCY:
SUMMARY: DoD is proposing to amend
the Defense Federal Acquisition
Regulation Supplement (DFARS) to
remove text addressing DoD procedures
for closeout of contract files. The text
proposed for removal will be relocated
to the DFARS companion resource,
Procedures, Guidance, and Information.
DATES: Comments on the proposed rule
should be submitted in writing to the
address shown below on or before May
29, 2007, to be considered in the
formation of the final rule.
ADDRESSES: You may submit comments,
identified by DFARS Case 2006–D045,
using any of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• E-mail: dfars@osd.mil. Include
DFARS Case 2006–D045 in the subject
line of the message.
• Fax: (703) 602–0350.
• Mail: Defense Acquisition
Regulations System, Attn: Ms. Deborah
Tronic, OUSD(AT&L)DPAP(DARS), IMD
3C132, 3062 Defense Pentagon,
Washington, DC 20301–3062.
• Hand Delivery/Courier: Defense
Acquisition Regulations System, Crystal
Square 4, Suite 200A, 241 18th Street,
Arlington, VA 22202–3402.
Comments received generally will be
posted without change to https://
www.regulations.gov, including any
personal information provided.
FOR FURTHER INFORMATION CONTACT: Ms.
Deborah Tronic, (703) 602–0289.
SUPPLEMENTARY INFORMATION:
A. Background
This proposed rule revises DFARS
204.804 to remove text addressing DoD
procedures for closeout of contract files.
The text will be relocated to the DFARS
companion resource, Procedures,
Guidance, and Information (PGI). The
proposed rule also amends DFARS
244.304 to clarify an existing reference
to corresponding PGI text.
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]]>Agencies
[Federal Register Volume 72, Number 58 (Tuesday, March 27, 2007)]
[Proposed Rules]
[Pages 14254-14256]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-5285]
=======================================================================
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 292
[Docket No. RM07-11-000]
Applicability of Federal Power Act Section 215 to Qualifying
Small Power Production and Cogeneration Facilities
March 16, 2007.
AGENCY: Federal Energy Regulatory Commission, DOE.
ACTION: Notice of Proposed Rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Federal Energy Regulatory Commission (Commission) is
proposing to amend its regulations governing qualifying small power
production and cogeneration facilities, to eliminate the exemption from
the requirements of section 215 of the Federal Power Act. From a
reliability perspective, there does not appear to be a meaningful
distinction between QF and non-QF generators that would warrant
exemption of QFs from mandatory Reliability Standards.
DATES: Comments are due April 17, 2007.
ADDRESSES: You may submit comments, identified by Docket No. RM07-11-
000, by one of the following methods:
Agency Web site: https://ferc.gov. Follow the instructions
for submitting comments via the eFiling link found in the Comment
Procedures section of the Preamble.
Mail: Commenters unable to file comments electronically
must mail or hand deliver an original and 14 copies of their comments
to: Federal Energy Regulatory Commission, Secretary of the Commission,
888 First Street, NE., Washington, DC, 20426. Refer to the Comment
Procedures section of the preamble for additional information on how to
file paper comments.
FOR FURTHER INFORMATION CONTACT:
Paul Singh (Technical Information), Office of Energy Markets and
Reliability, Federal Energy Regulatory Commission, 888 First Street,
NE., Washington, DC 20426, (202) 502-8576.
Samuel Higginbottom (Legal Information), Office of the General Counsel,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502-8561.
SUPPLEMENTARY INFORMATION:
Introduction
1. The Commission is proposing to amend the exemptions available to
qualifying facilities (QFs) so that they would no longer be exempt from
newly-added section 215 of the Federal Power Act (FPA).\1\ From a
reliability perspective, there does not appear to be a meaningful
distinction between QF and non-QF generators that would warrant
exemption of QFs from mandatory Reliability Standards. The benefit of
this proposal will be increased reliability of the North American Bulk-
Power System.
---------------------------------------------------------------------------
\1\ 16 U.S.C. 824o.
---------------------------------------------------------------------------
Background
2. On August 8, 2005, the Electricity Modernization Act of 2005,
which is Title XII, Subtitle A, of the Energy Policy Act of 2005 (EPAct
2005), was enacted into law.\2\ EPAct 2005 adds a new section 215 to
the Federal Power Act (FPA),\3\ which requires a Commission-certified
Electric Reliability Organization (ERO) to develop mandatory and
enforceable Reliability Standards, which are subject to Commission
review and approval. Once approved, the Reliability Standards may be
enforced by the ERO, subject to Commission oversight.
---------------------------------------------------------------------------
\2\ Energy Policy Act of 2005, Pub. L. No 109-58, Title XII,
Subtitle A, 119 Stat. 594, 941 (2005).
\3\ 16 U.S.C. 824o.
---------------------------------------------------------------------------
3. On February 3, 2006, the Commission issued Order No. 672, which
implements newly-added section 215 and provides specific processes for
the certification of an entity as the ERO, the development and approval
of mandatory Reliability Standards, and the compliance with and
enforcement of approved Reliability Standards.\4\ On April 4, 2006,
North American Electric Reliability Corporation (NERC) made two
filings: (1) An application for certification of NERC as the ERO; and
(2) a petition for Commission approval of Reliability Standards, with
eight regional differences and a glossary of terms. On July 20, 2006,
the Commission issued an order certifying NERC as the ERO.\5\ On
October 20, 2006, the Commission issued a Notice of Proposed Rulemaking
proposing to approve 83 of 107 proposed Reliability Standards.\6\
---------------------------------------------------------------------------
\4\ Rules Concerning Certification of the Electric Reliability
Organization; Procedures for the Establishment, Approval and
Enforcement of Electric Reliability Standards, Order No. 672, 71 FR
8662 (Feb. 17, 2006), FERC Stats. & Regs. ] 31,204 (2006), order on
reh'g, Order No. 672-A, 71 FR 19814 (Apr. 18, 2006), FERC Stats. &
Regs. ] 31,212 (2006).
\5\ North American Electric Reliability Corporation, 116 FERC ]
61,062 (2006).
\6\ Mandatory Reliability Standards for the Bulk-Power Market,
72 FR 64770 (Oct. 20, 2006), FERC Stats. & Regs. ] 32,608 (2006)
(Reliability NOPR).
---------------------------------------------------------------------------
4. In response to the Reliability NOPR, Cogeneration Association of
California and the Energy Producers and Users Coalition (CAC/EPUC)
filed comments pointing out that QFs are exempt from section 215 by
virtue of section 292.601(c) of the Commission's regulations.\7\ CAC/
EPUC suggest that the Commission intentionally exempted QFs from
section 215. CAC/EPUC explain that in Order No. 671 issued on February
2, 2006,\8\ the Commission stated that it saw no reason to exempt QFs
from the newly added FPA sections 220, 221 and 222,\9\ and explicitly
excluded those sections of the FPA from the QF exemptions contained in
section 292.601 of its regulations, while making no similar mention of
section 215.
---------------------------------------------------------------------------
\7\ 18 CFR 292.601(c).
\8\ Revised Regulations Governing Small Power Production and
Cogeneration Facilities, Order No. 671, 71 FR 7852 (Feb. 2, 2006),
FERC Stats. & Regs. ] 31,203 (2006), order on rehearing, Order No.
771-A, 71 FERC 30583 (May 22, 2006), FERC Stats. & Regs. ] 31.219
(2006).
\9\ 16 U.S.C. 824t-v.
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5. Section 215(b) grants the Commission jurisdiction over ``all
users, owners, and operators of the bulk-power system'' for ``purposes
of approving
[[Page 14255]]
reliability standards. . . . and enforcing compliance with [section
215]'', and further provides that ``[a]ll users, owners and operators
of the bulk-power system shall comply with reliability standards that
take effect under this section.'' \10\ Given the statutory directive
that all users, owners and operators of the bulk-power system must
comply with the reliability standards that take effect under section
215, it may no longer be appropriate to allow QFs a continued exemption
from compliance with the newly-adopted mandatory and enforceable
Reliability Standards that apply to generator owners and operators.\11\
Moreover, from a reliability perspective, there would seem to be no
meaningful distinction between QF and non-QF generators that would
warrant exemption of QFs from the newly-adopted mandatory Reliability
Standards. Indeed, QF generators would seem to affect the reliability
of the Bulk-Power System as much as non-QF generators, and so QF
generators should be subject to the newly-adopted mandatory Reliability
Standards. In this regard, we note that while many QFs are small
facilities, others are quite large. We see no justification for large
facilities to be exempt from the newly-adopted mandatory and
enforceable Reliability Standards. Accordingly, we are proposing to
amend Sec. 292.601(c)(3) to add section 215 to the list of FPA
sections from which QFs are not exempt.
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\10\ 16 U.S.C. 824o(b). Section 215(b) also states that entities
described in section 201(f), entities that are otherwise exempt from
Part II of the FPA unless a provision is specifically applicable to
those entities, are subject to section 215. Id.
\11\ Mandatory Reliability Standards for the Bulk-Power System,
Order No. 693, FERC Stats. & Regs. ] 31,242 (2007) (issued
concurrently with this NOPR).
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6. The threshold for applicability of the Reliability Standards to
generating units is 20 MVA (gross nameplate rating) for an individual
generating unit, or 75 MVA (gross nameplate rating) in aggregate for a
generating plant.\12\ In addition, the Reliability Standards are
applicable to: any generator, regardless of size that is a blackstart
unit material to and designated as part of a transmission operator
entity's restoration plan; or any generator, regardless of size, that
is material to the reliability of the bulk-power system; the
determination to include an otherwise exempt facility would be made on
a facility-by-facility basis by the ERO or Regional Entity. However, an
entity that disagrees with NERC's determination to place it in the
compliance registry may submit a challenge in writing to NERC and, if
still not satisfied, may lodge an appeal with the Commission.
Therefore, a small entity may appeal to the Commission if it believes
it should not be required to comply with the Reliability Standards.
According to the Energy Information Administration (EIA), the total
universe of qualifying facilities is 3,265 entities. Of these, 2,423
entities are below 20 MW (which, as noted above, roughly corresponds to
the 20 MVA standard for applicability of the reliability standards),
which leaves 842 entities that could be potentially impacted by the
reliability standards. Of these 842 entities, only 745 are listed by
EIA as being interconnected to the grid. Thus, out of a total of 3265
QFs, only 745, or 23 percent of all QFs would meet the generally
applicable threshold of 20 MVA (although some other QFs may be
specified as either blackstart units material to and designated as part
of a transmission operator entity's restoration plan or as generators
material to the reliability of the bulk-power system). In sum, while
there would seem to be no basis to exempt all QFs from the mandatory
and enforceable Reliability Standards, as a result of the threshold for
applicability of the Reliability Standards to generating units, and
based on EIA data, it appears that less than a quarter of all QFs will,
in fact, be affected by our proposal to eliminate the QF exemption from
the requirements of section 215 of the FPA.
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\12\ Id. A 20 MVA threshold corresponds to 20 MW, if a unit is
operating at a unity power factor.
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Information Collection Statement
7. The Paperwork Reduction Act (PRA) \13\ requires each Federal
agency to seek and obtain OMB approval before undertaking a collection
of information directed to ten or more persons, or continuing a
collection for which the Office of Management and Budget (OMB) approval
and validity of the control number are about to expire.\14\ The PRA
defines the phrase ``collection of information'' to be the ``obtaining,
causing to be obtained, soliciting, or requiring the disclosure to
third parties or the public, of facts or opinions by or for an agency,
regardless of form or format, calling for either--(i) answers to
identical questions posed to, or identical reporting or recordkeeping
requirements imposed on ten or more persons, other than agencies,
instrumentalities, or employees of the United States; or (ii) answers
to questions posed to agencies, instrumentalities, or employees of the
United States which are to be used for general statistical purposes.''
\15\ OMB regulations require approval of certain information collection
requirements imposed by agency rules.\16\
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\13\ 44 U.S.C. 3501-3520.
\14\ 44 U.S.C. 3502(3)(A)(i), 44 U.S.C. 3507(a)(3).
\15\ 44 U.S.C. 3502(3)(A).
\16\ 5 CFR 1320.11.
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8. As noted above, the Commission is proposing to amend the
exemption available to qualifying facilities from the requirements of
section 215 of the FPA. Because the Commission is not proposing
information collections in this rulemaking, it is not subject to OMB
review under the PRA. However, the Commission will submit for
informational purposes only a copy of this rulemaking to OMB.
Environmental Analysis
9. 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.\17\ The
Commission has categorically excluded certain actions from this
requirement as not having a significant effect on the human
environment. As explained above, this proposed rule carries out the
intent of legislation, specifically section 215 of the FPA. It lifts an
exemption and thus makes section 215 of the FPA applicable to QFs; it
does not substantially change the effect of the legislation.
Accordingly, no environmental consideration is necessary.\18\
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\17\ Regulations Implementing the National Environmental Policy
Act, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs.
] 30,783 (1987).
\18\ 18 CFR 380.4(a)(2)(ii).
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Regulatory Flexibility Act Analysis
10. The Regulatory Flexibility Act of 1980 (RFA) \19\ generally
requires a description and analysis of rules that will have significant
economic impact on a substantial number of small entities. The total
universe of qualifying facilities is 3,265 entities. Of these, 2,423
entities are below 20 MW (the threshold for applicability of the
Reliability Standards is 20 MVA for an individual generating unit, or
75 MVA in aggregate for a generating plant \20\) which leaves 842
entities that could be potentially impacted by the reliability
standards. Of these 842 entities, only 745 are listed as being
interconnected to the grid. Accordingly, we estimate that out of a
total of 3265 QFs, only 745, or 23 per cent of all QFs would likely be
affected by the change in regulations proposed here. Thus, most, if not
all, QFs affected by this rule do not fall
[[Page 14256]]
within the definition of small entities,\21\ nor do they meet the
threshold criteria for applicability of the RFA to electric utilities
established by the Small Business Administration, which is based on a
size standard of 4 million MWh.\22\
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\19\ 5 U.S.C. 601-12.
\20\ The 20 MVA threshold corresponds to 20 MW, if a unit is
operating at a unity power factor.
\21\ The RFA definition of ``small entity'' refers to the
definition provided in the Small Business Act, which defines a
``small business concern'' as a business that is independently owned
and operated and that is not dominant in its field of operation. See
15 U.S.C. 632.
\22\ The Small Business Size Standard component of the North
American Industry Classification System (NAICS) defines a small
utility as one that, including its affiliates, is primarily engaged
in generation, transmission, and/or distribution of electric energy
for sale and whose total electric output for the preceding fiscal
years did not exceed 4 million MWh. 13 CFR 121.201.
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Comment Procedures
11. The Commission invites interested persons to submit comments on
the change proposed in this notice to be adopted, including any related
matters or alternative proposals that commenters may wish to discuss.
Comments are due April 16, 2007. Comments must refer to Docket No.
RM07-11-000, and must include the commenter's name, the organization
they represent, if applicable, and their address in their comments.
Comments and reply comments may be filed either in electronic or paper
format.
12. Comments and reply comments may be filed electronically via the
eFiling link on the Commission's Web site at https://www.ferc.gov. The
Commission accepts most standard word processing formats and commenters
may attach additional files with supporting information in certain
other file formats. Commenters filing electronically do not need to
make a paper filing. Commenters that are not able to file comments and
reply comments electronically must send an original and 14 copies of
their comments to: Federal Energy Regulatory Commission, Secretary of
the Commission, 888 First Street, NE., Washington, DC, 20426.
13. All comments and reply comments will be placed in the
Commission's public files and may be viewed, printed, or downloaded
remotely as described in the Document Availability section below.
Commenters on this proposal are not required to serve copies of their
comments and reply comments on other commenters.
Document Availability
14. 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 the Commission's Home Page (https://www.ferc.gov) and
in the Commission's Public Reference Room during normal business hours
(8:30 a.m. to 5 p.m. Eastern time) at 888 First Street, NE., Room 2A,
Washington DC 20426.
15. From the Commission's Home Page on the Internet, this
information is available in the Commission's document management
system, eLibrary. The full text of this document is available on
eLibrary in PDF and Microsoft Word format for viewing, printing, and/or
downloading. To access this document in eLibrary, type the docket
number excluding the last three digits of this document in the docket
number field.
16. User assistance is available for eLibrary and the Commission's
Web site during normal business hours. For assistance, please contact
FERC Online Support at 1-866-208-3676 (toll free) or (202) 502-8222 (e-
mail at FERCOnlineSupport@FERC.gov), or the Public Reference Room at
(202) 502-8371, TTY (202) 502-8659 (e-mail at
public.referenceroom@ferc.gov).
List of Subjects in 18 CFR Part 292
Electric power, Electric power plants, Electric utilities, Natural
gas, Reporting and recordkeeping requirements.
By direction of the Commission.
Philis J. Posey,
Acting Secretary.
In consideration of the foregoing, the Commission proposes to amend
part 292, Chapter I, Title 18, Code of Federal Regulations, to read as
follows.
PART 292--REGULATIONS UNDER SECTIONS 201 AND 210 OF THE PUBLIC
UTILITY REGULATORY POLICIES ACT OF 1978 WITH REGARD TO SMALL POWER
PRODUCTION AND COGENERATION
1. The authority citation for part 292 continues to read as
follows:
Authority: 16 U.S.C. 791a-825r, 2601-2645; 31 U.S.C. 9701; 42
U.S.C. 7101-7352.
2. In Sec. 292.601 paragraph (c)(3) is revised to read as follows:
Sec. 292.601 Exemption to qualifying facilities from the Federal
Power Act.
* * * * *
(c) * * *
(3) Sections 202(c), 210, 211, 212, 213, 214, 215, 220, 221 and
222;
* * * * *
[FR Doc. E7-5285 Filed 3-26-07; 8:45 am]
BILLING CODE 6717-01-P
