Requirements for Frequency and Voltage Ride Through Capability of Small Generating Facilities, 50290-50298 [2016-17843]
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Federal Register / Vol. 81, No. 147 / Monday, August 1, 2016 / Rules and Regulations
§ 996.60 Safeguard procedures for
imported peanuts.
(a) Prior to arrival of a foreignproduced peanut lot at a port-of-entry,
the importer, or customs broker acting
on behalf of the importer, shall submit
information electronically to the United
States Customs and Border Protection,
which includes the following: The
Customs Service entry number; the
container number(s) or other
identification of the lot(s); the volume of
the peanuts in each lot being entered;
the inland shipment destination where
the lot will be made available for
inspection; and a contact name or
telephone number at the destination.
*
*
*
*
*
■ 15. In § 996.71:
■ a. Remove paragraph (a);
■ b. Redesignate paragraphs (b) and (c)
as paragraphs (a) and (b), respectively;
■ c. Revise newly redesignated
paragraph (a); and
■ d. Revise the last sentence in newly
redesignated paragraph (b).
The revisions read as follows:
§ 996.71
Reports and recordkeeping.
(a) Each handler and importer shall
maintain a satisfactory records system
for traceability purposes as defined in
§ 996.73.
(b) * * * USDA and USDA-approved
laboratories shall file copies of all
aflatoxin certificates completed by such
laboratories with the Southeast
Marketing Field Office, Marketing Order
and Agreement Division, Specialty
Crops Program, AMS, USDA, 1124 1st
Street South, Winter Haven, Florida
33880; Telephone (863) 324–3375, Fax:
(863) 291–8614, or other address as
determined by USDA.
■ 16. Section 996.73 is revised to read
as follows:
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§ 996.73
Verification of reports.
(a) For the purpose of checking and
verifying reports kept by handlers and
importers and the operation of handlers
and importers under the provisions of
this Part, the officers, employees or duly
authorized agents of USDA shall have
access to any premises where peanuts
may be held at any time during
reasonable business hours and shall be
permitted to inspect any peanuts that
meet outgoing quality regulations, so
held by such handler or importer and
any and all records of such handler with
respect to the acquisition, holding, or
disposition of all peanuts meeting
outgoing quality regulations, which may
be held or which may have been
disposed by handler.
(b) Reports shall be maintained by the
handler for nonconforming products to
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assure traceability throughout the
supply chain. The traceability system
must include documented records,
which enable a full product history to
be produced in a timely manner and
must ensure product can be traced
forward (raw material to distribution)
and backwards from distribution to the
warehouse feeding the shelling plant,
and ensure that all associated tests and
all relevant records have been
completed. The traceability system shall
include identification of all raw
materials, process parameters (for
specific lot), packaging and final
disposition. The handler shall be able to
identify the warehouse in which the
peanuts were stored immediately prior
to shelling. Traceability must be
maintained throughout production runs
with specific lot codes, and there shall
be complete linkage from raw material
receipt through final disposition.
■ 17. In § 996.74:
■ a. Remove paragraph (a)(1);
■ b. Redesignate paragraphs (a)(2)
through (7) as paragraphs (a)(1) through
(6), respectively;
■ c. Revise newly redesignated
paragraphs (a)(3) and (5); and
■ d. Revise paragraph (b).
The revisions read as follows:
§ 996.74
Compliance.
(a) * * *
(3) Commingles failing quality
peanuts with certified edible quality
peanuts and ships the commingled lot
for human consumption use without
meeting outgoing quality regulations;
*
*
*
*
*
(5) Fails to maintain and provide
access to records, pursuant to § 996.71,
and the standards for traceability and
nonconforming product disposition
pursuant to § 996.73, on the
reconditioning or disposition of peanuts
acquired by such handler or importer;
and on lots that meet outgoing quality
standards; or
*
*
*
*
*
(b) Any peanut lot shipped which
fails to meet the outgoing quality
standards specified in § 996.31, and is
not reconditioned to meet such
standards, or is not disposed to nonhuman consumption outlets as specified
in § 996.50, shall be reported by USDA
to the Food and Drug Administration
and listed on an Agricultural Marketing
Service Web site.
■ 18. Section 996.75 is revised to read
as follows:
§ 996.75
Effective time.
The provisions of this part, as well as
any amendments, shall apply to current
crop year peanuts, subsequent crop year
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peanuts, and prior crop year peanuts not
yet inspected, or failing peanut lots that
have not met disposition standards, and
shall continue in force and effect until
modified, suspended, or terminated.
Dated: July 27, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2016–18116 Filed 7–29–16; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
18 CFR Part 35
[Docket No. RM16–8–000; Order No. 828]
Requirements for Frequency and
Voltage Ride Through Capability of
Small Generating Facilities
Federal Energy Regulatory
Commission, Department of Energy.
ACTION: Final rule.
AGENCY:
The Federal Energy
Regulatory Commission (Commission) is
modifying the pro forma Small
Generator Interconnection Agreement
(SGIA). The pro forma SGIA establishes
the terms and conditions under which
public utilities must provide
interconnection service to small
generating facilities of no larger than 20
megawatts. The Commission is
modifying the pro forma SGIA to
require newly interconnecting small
generating facilities to ride through
abnormal frequency and voltage events
and not disconnect during such events.
The specific ride through settings must
be consistent with Good Utility Practice
and any standards and guidelines
applied by the transmission provider to
other generating facilities on a
comparable basis. The Commission
already requires generators
interconnecting under the Large
Generator Interconnection Agreement to
meet such requirements, and it would
be unduly discriminatory not to also
impose these requirements on small
generating facilities. The Commission
concludes that newly interconnecting
small generating facilities should have
ride through requirements comparable
to large generating facilities.
DATES: This final rule will become
effective October 5, 2016.
FOR FURTHER INFORMATION CONTACT:
Monica Taba (Technical Information),
Office of Electric Reliability, Federal
Energy Regulatory Commission, 888
First Street NE., Washington, DC
SUMMARY:
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20426, (202) 502–6789,
Monica.Taba@ferc.gov.
Alan Rukin (Legal Information), Office
of the General Counsel, Federal
Energy Regulatory Commission, 888
First Street NE., Washington, DC
20426, (202) 502–8502, Alan.Rukin@
ferc.gov.
SUPPLEMENTARY INFORMATION:
Order No. 828
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Final Rule
1. In this Final Rule, the Commission
modifies the pro forma Small Generator
Interconnection Agreement (SGIA)
originally set forth in Order No. 2006 1
and revised in Order No. 792 2 to require
small generating facilities
interconnecting through the SGIA to
ride through abnormal frequency and
voltage events and not disconnect
during such events.3 Pursuant to section
206 of the Federal Power Act (FPA), the
Commission finds that, given the
changes to conditions since the
Commission last evaluated whether to
impose ride through requirements on
small generating facilities, the revisions
to the pro forma SGIA are necessary to
remedy undue discrimination by
ensuring that small generating facilities
have ride through requirements
comparable to large generating
facilities.4
2. As a result of this Final Rule, small
generating facilities are required to not
disconnect automatically or
instantaneously from the system or
equipment of the transmission provider
and any affected systems for an underfrequency or over-frequency condition,
or an under-voltage or over-voltage
1 Standardization of Small Generator
Interconnection Agreements and Procedures, Order
No. 2006, FERC Stats. & Regs. ¶ 31,180, order on
reh’g, Order No. 2006–A, FERC Stats. & Regs. ¶
31,196 (2005), order granting clarification, Order
No. 2006–B, FERC Stats. & Regs. ¶ 31,221 (2006)
(Order No. 2006).
2 Small Generator Interconnection Agreements
and Procedures, Order No. 792, 145 FERC ¶ 61,159
(2013), clarified, Order No. 792–A, 146 FERC ¶
61,214 (2014) (Order No. 792).
3 In Order No. 2003, the Commission defined
‘‘ride through’’ to mean a generating facility staying
connected to and synchronized with the
transmission system during system disturbances
within a range of over- and under-frequency
conditions, in accordance with Good Utility
Practice. Standardization of Generator
Interconnection Agreements and Procedures, Order
No. 2003, FERC Stats. & Regs. ¶ 31,146, at P 562
n.88 (2003), order on reh’g, Order No. 2003–A,
FERC Stats. & Regs. ¶ 31,160, order on reh’g, Order
No. 2003–B, FERC Stats. & Regs. ¶ 31,171 (2004),
order on reh’g, Order No. 2003–C, FERC Stats. &
Regs. ¶ 31,190 (2005), aff’d sub nom. Nat’l Ass’n
of Regulatory Util. Comm’rs v. FERC, 475 F.3d 1277
(D.C. Cir. 2007), cert. denied, 552 U.S. 1230 (2008)
(Order No. 2003). Reliability Standard PRC–024–1
requires bulk electric system generation to ride
through over- and under-voltage conditions.
4 16 U.S.C. 824e.
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condition. Furthermore, the
transmission provider must coordinate
the small generating facility’s protective
equipment settings with any automatic
load shedding program (e.g., underfrequency load shedding, under-voltage
load shedding). The specific ride
through settings must be consistent with
Good Utility Practice and any standards
and guidelines applied by the
transmission provider to other
generating facilities on a comparable
basis. These requirements will apply to
new interconnection customers that
execute or request the unexecuted filing
of an SGIA on or after the effective date
of this Final Rule. These requirements
will also apply to existing
interconnection customers that,
pursuant to a new interconnection
request, execute or request the
unexecuted filing of a new or modified
SGIA on or after the effective date of
this Final Rule.
I. Background
3. The pro forma SGIA establishes the
terms and conditions under which
public utilities must provide
interconnection service to small
generating facilities of no larger than 20
megawatts (MW). Currently, the pro
forma SGIA does not mandate that small
generating facilities have the capability
to ride through voltage or frequency
disturbances.
4. In Order No. 2006, the Commission
explored whether voltage ride through
requirements proposed for large wind
generating facilities should apply to
small generating facilities.5 A
commenter during that proceeding
asked the Commission to implement
ride through standards for small
generating facilities similar to those
proposed for large generating facilities.
However, other commenters responded
that special capabilities, such as low
voltage ride through, were not needed
for any small generating facility,
whether wind-powered or not. The
Commission concluded that wind
generating facilities interconnecting
under Order No. 2006 would be small
and would have minimal impact on the
transmission provider’s electric system
and, therefore, need not be subject to
ride through requirements.6
5. More recently, the Commission
again addressed these requirements
with regard to small generating facilities
in Order No. 792.7 In that proceeding,
5 Order No. 2006, FERC Stats. & Regs. ¶ 31,180
at P 24.
6 Id. The penetration of small generating facilities
has increased since the Commission analyzed the
impact of small generating facilities in Order No.
2006. See infra P 8.
7 Order No. 792, 145 FERC ¶ 61,159.
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the Commission proposed to revise
section 1.5.4 of the pro forma SGIA to
address the reliability concern related to
automatic disconnection of small
generating facilities during over- and
under-frequency events, which could
become a greater concern at high
penetrations of distributed energy
resources.8 The proposed revisions to
section 1.5.4 would have required the
interconnection customer to design,
install, maintain, and operate its small
generating facility, in accordance with
the latest version of the applicable
standards to prevent automatic
disconnection during over- and underfrequency events.9
6. The Commission declined to adopt
this proposed revision in Order No.
792.10 Instead, the Commission
recognized that the Institute of Electrical
and Electronics Engineers (IEEE) was, at
the time, in the process of amending
IEEE Standard 1547, which is an
interconnection standard for
interconnecting distributed resources
with electric power systems that is
referenced in the Small Generator
Interconnection Procedures.11 The
Commission also noted that IEEE was
about to begin a full IEEE Standard 1547
revision process in 2014, where
frequency and voltage ride through
requirements in the standard were to be
evaluated. The Commission concluded
that it would continue to monitor the
IEEE Standard 1547 revision process
and could revise the pro forma SGIA as
it relates to IEEE Standard 1547 in the
future, if necessary.12
7. Since the Commission issued Order
No. 792, IEEE has completed a partial
revision of IEEE Standard 1547, which
is IEEE Standard 1547a. IEEE is now in
the process of fully revising IEEE
Standard 1547. The partially revised
standard, IEEE Standard 1547a, permits
generating facilities to have wider trip
settings compared with IEEE Standard
1547. These wider trip settings allow
generating facilities to stay connected to
the grid for greater frequency or voltage
excursions facilitating their ability to
ride through such excursions. IEEE
Standard 1547a also permits—but does
8 Small Generator Interconnection Agreements
and Procedures, Notice of Proposed Rulemaking,
142 FERC ¶ 61,049, at P 46 (2013) (Order No. 792
NOPR). NERC defines distributed energy resources
to mean resources that are distributed
geographically and not centralized like traditional
generation resources. NERC, Essential Reliability
Services Task Force Measures Report, (Nov. 2015),
https://www.nerc.com/comm/Other/essntlrlbltysr
vcstskfrcDL/ERSTF%20Framework%20Report%20%20Final.pdf.
9 Id.
10 Order No. 792, 145 FERC ¶ 61,159 at P 220.
11 Id.
12 Id.
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not mandate—ride through
requirements.13
8. Following the Commission’s
evaluation of the need for ride through
requirements for small generating
facilities in the Order Nos. 2006 and 792
rulemaking proceedings, the impact of
small generating facilities on the grid
has changed, and the amount has
increased. For example, as the North
American Electric Reliability
Corporation (NERC) has noted in
multiple reports, the mix of generation
resources is changing and the high
penetration of distributed energy
resources will impact the reliability of
the electric grid if sufficient care is not
taken to mitigate potential adverse
impacts.14 NERC also has found that a
lack of coordination between small
generating facilities and Reliability
Standards can lead to events where
system load imbalance may increase
during frequency excursions or voltage
deviations due to the disconnection of
distributed energy resources, which may
exacerbate a disturbance on the BulkPower System.15 In addition, the
Commission has observed the growth in
grid-connected solar photovoltaic
generation since the issuance of Order
No. 2006 and the growth in small
generator interconnection requests
driven by state renewable portfolio
standards, reductions in cost for solar
panels, and deployment of new
technologies.16 Moreover, technology
now available to newly interconnecting
small generating facilities, such as smart
inverters, permits the capability to ride
through frequency and voltage
disturbances.17
13 IEEE Standard 1547a contains ‘‘must trip’’
requirements; it does not have ‘‘must ride through’’
requirements. By widening the trip settings, IEEE
Standard 1547a permits generating facilities to trip
at a later time. This change effectively allows
generating facilities to ride through disturbances,
but they are not required to do so.
14 See NERC Special Report, Potential Bulk
System Reliability Impacts of Distributed Resources
(Aug. 2011), https://www.nerc.com/docs/pc/ivgtf/
IVGTF_TF-1-8_Reliability-Impact-DistributedResources_Final-Draft_2011.pdf; see also NERC
Integration of Variable Generation Task Force Draft
Report, Performance of Distributed Energy
Resources During and After System Disturbance
(Dec. 2013), https://www.nerc.com/comm/PC/
Integration%20of%20Variable%20Generation%20
Task%20Force%2011/IVGTF17_PC_FinalDraft_
December_clean.pdf.
15 NERC Essential Reliability Services Report at
21.
16 See, e.g., Order No. 792, 145 FERC ¶ 61,159 at
P 15; Solar Energy Indus. Ass’n, Solar Industry
Data, https://www.seia.org/research-resources/solarindustry-data (last visited Jul. 5, 2016).
17 See Electric Power Research Institute,
Recommended Settings for Voltage and Frequency
Ride Through of Distributed Energy Resources, 28–
29 (May 2015), https://www.epri.com/abstracts/
Pages/ProductAbstract.aspx?ProductId=0000000
03002006203.
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II. Notice of Proposed Rulemaking
9. On March 23, 2016, the
Commission issued a Notice of
Proposed Rulemaking that proposed to
add new section 1.5.7 to the pro forma
SGIA,18 which would require small
generating facilities to ride through
defined frequency and voltage
disturbances.
10. In response to the NOPR, eleven
entities submitted substantive
comments, which generally support the
Commission’s proposal.19 These
comments have informed our
determinations in this Final Rule.
III. Discussion
11. For the reasons discussed below,
we adopt the NOPR proposal and
require small generating facilities to ride
through abnormal frequency and voltage
events comparable to large generating
facilities. We find that, given the
changes to conditions since the
Commission last evaluated whether to
impose ride through requirements on
small generating facilities, the revisions
to the pro forma SGIA are necessary to
remedy undue discrimination by
ensuring that small generating facilities
have ride through requirements
comparable to large generating
facilities.20 Specifically, since the
Commission’s last consideration of this
issue, IEEE has revised its standards,
and IEEE Standard 1547a now provides
wider trip settings that allow small
generating facilities more leeway to ride
through disturbances. In addition,
distributed energy resources have had
an increasing presence and impact on
the electric system. The absence of ride
through requirements for small
generating facilities increases the risk
that an initial voltage or frequency
disturbance may cause a significant
number of small generating facilities to
trip across a particular area or
Interconnection, further exacerbating
the initial disturbance. Large generating
facilities are already subject to ride
through requirements to avoid these
types of occurrences.21
18 Requirements for Frequency and Voltage Ride
Through Capability of Small Generating Facilities,
154 FERC ¶ 61,222 (2016) (NOPR).
19 Appendix A lists the entities that submitted
comments and the shortened names used
throughout this Final Rule to describe those
entities.
20 16 U.S.C. 824e. The Commission routinely
evaluates the effectiveness of its regulations and
policies in light of changing industry conditions to
determine if changes in these conditions and
policies are necessary. See, e.g., Integration of
Variable Energy Resources, Order No. 764, FERC
Stats. & Regs, ¶ 31,331 (2012).
21 See Order No. 2003, FERC Stats. & Regs. ¶
31,146 at P 562 n.88.
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12. The Commission acknowledges
that some areas have a greater
penetration of distributed resources
than others at this time. Nevertheless,
the Commission believes that the
proposed reforms to the pro forma SGIA
are appropriate on an industry-wide
basis now. The Commission continues
to affirm that this Final Rule is not
intended to interfere with state
interconnection procedures or
agreements in any way. The pro forma
SGIA applies only to interconnections
made subject to a jurisdictional open
access transmission tariff (OATT) for the
purposes of jurisdictional wholesale
sales. Similar to the approach in Order
Nos. 2006 and 792, the Commission
hopes that the changes to the pro forma
SGIA resulting from this Final Rule will
be helpful to states when updating their
own interconnection rules, but the
states are under no obligation to adopt
the provisions of the Commission’s
proposal.22
A. Revision of the Pro Forma SGIA
1. NOPR Proposal
13. In the NOPR, the Commission
proposed to revise the pro forma SGIA
to include proposed section 1.5.7,
which would require interconnection
customers to ensure the frequency ride
through capability and the voltage ride
through capability of small generating
facilities that execute or request the
unexecuted filing of interconnection
agreements following the effective date
of the proposed section 1.5.7. Proposed
section 1.5.7 would also require a small
generating facility not to disconnect
automatically or instantaneously from
the system or equipment of the
transmission provider and any affected
systems for an under-frequency or overfrequency condition, or an undervoltage or over-voltage condition. In
addition, the transmission provider
must coordinate the small generating
facility’s protective equipment settings
with any automatic load shedding
program.
2. Comments
14. The substantive comments filed in
response to the NOPR generally support
the proposal to modify the pro forma
SGIA.23 Commenters agree with the
need for fair and equitable treatment
between small and large generating
22 Order No. 792, 145 FERC ¶ 61,159 at P 27;
Order No. 2006, FERC Stats. & Regs. ¶ 31,180 at P
8.
23 Peak Reliability Comments at 3; Idaho Power
Comments at 2; PNM Comments at 1; SoCal Edison
Comments at 2; ISO/RTO Council Comments at 6;
Trade Associations Comments at 4; Bonneville
Comments at 1; EPRI Comments at 7; NERC
Comments at 2; PG&E Comments at 2.
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facilities, the need for effective
protections for system operation while
also avoiding increased costs, and the
potential to improve system stability
and reliability over the coming years by
adopting the proposed modifications to
the pro forma SGIA.24 Commenters
acknowledge the proposal’s benefits,
stating it will simplify operational
conditions, especially considering the
rising small generator penetration levels
on the distribution system.25 NERC
states that revising the pro forma SGIA
to impose ride through requirements
would be consistent with the results of
a number of NERC’s reliability
assessments.26 Trade Associations and
PNM agree that the absence of ride
through requirements for small
generating facilities increases the risk
that an initial voltage or frequency
disturbance may cause a significant
number of small generating facilities to
trip offline, exacerbating the initial
disturbance.27
15. Idaho Power claims that if more
small generation facilities connect to its
system, without the proposed changes
to the pro forma SGIA, it would become
increasingly difficult for it to comply
with Reliability Standards PRC–006–2
(Automatic Underfrequency Load
Shedding) and BAL–003–1.1 (Frequency
Response and Frequency Bias Setting).28
16. The ISO/RTO Council
recommends that the proposed required
characteristics for small generating
facilities should be demonstrated ‘‘as
tested,’’ and that this should be
specified in the pro forma SGIA section
1.5.7. The ISO/RTO Council notes that
demonstrating characteristics ‘‘as
tested’’ is already required under
section 24 of the large generator
interconnection agreement (LGIA). The
ISO/RTO Council further explains that,
while the pro forma SGIA does not
presently have such language, the ‘‘as
tested’’ requirement applies to small
generating facilities pursuant to the
directives in Order No. 2006.29
17. Some commenters request that the
Commission delay implementation of
the Final Rule. While EPRI does not
believe that additional action is required
for other existing interconnected small
generating facilities, EPRI comments
that additional reliability studies may be
required if aggregate penetration levels
24 SoCal Edison Comments at 2; Peak Reliability
Comments at 3; EPRI Comments at 7.
25 PNM Comments at 2; Trade Associations
Comments at 7.
26 NERC Comments at 4.
27 PNM Comments at 2; Trade Associations
Comments at 7.
28 Idaho Power Comments at 2.
29 ISO/RTO Council Comments at 7 (citing Order
No. 2006, FERC Stats. & Regs. ¶ 31,180 at P 59).
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increase sufficiently before the
modifications to the pro forma SGIA
and revised IEEE Standard 1547 become
effective.30 EPRI notes the need for
timely revision and balloting of IEEE
Standard 1547, as well as prompt
adoption of the standard.31 Trade
Associations suggest waiting until after
key industry standards are approved
and the safety and effectiveness of smart
inverter technology is validated. 32
Trade Associations request time to
allow entities to resolve outstanding
concerns such as personnel and asset
safety, as well as the ability to
effectively coordinate protections
systems between the local utility and
interconnecting resources.33 EPRI and
IEEE assert that relevant stakeholders,
including transmission owners and
transmission operators, should engage
with the IEEE Standard 1547 revision
process to ensure that the final
framework and requirements for ride
through can be consistently applied to
meet individual system needs.34
18. Trade Associations claim that the
new ride through capability
requirements are only possible through
smart inverter technology, but point out
that key associated specifications
contained in the reference standards
remain unapproved. Trade Associations
explain that distribution feeders are
often designed as radial feeders that
depend on remote generation to quickly
disconnect when the utility source is
disconnected. According to Trade
Associations, failure to do so may result
in unintentional islands which create
safety hazards for personnel and
customers, as well as liability concerns.
Trade Associations caution that
directing small generation facilities to
ride through disturbances may create
islanding conditions and relaxed
response to fault conditions.
19. Further, Trade Associations claim
that more industry discussion is needed
to ensure that small generators’
interconnections meet the unique
regional utility safety and reliability
concerns before the proposed revisions
to section 1.5.7 of the pro forma SGIA
are adopted. Trade Associations suggest
that the Commission include the issues
in this proceeding in the three regional
technical conferences recommended by
Edison Electric Institute in Docket No.
RM16–6–000.35
Comments at 7.
at 7–8.
32 Trade Associations Comments at 7–8; EPRI
Comments at 7–8.
33 Trade Associations Comments at 7–8.
34 EPRI Comments at 7–8.
35 Trade Associations Comments at 13–14. In
Docket No. RM16–6–000, the Commission issued a
Notice of Inquiry seeking comment on the need for
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30 EPRI
31 Id.
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20. Trade Associations also suggest
that the Commission explore how
changes made to the pro forma SGIA
often influence state regulations. Trade
Associations note that distribution level
interconnections are broadly supported
by industry standards and company
interconnection rules; and alignment to
pro forma SGIA may be inappropriate
for some state regulations.36
3. Commission Determination
21. As discussed above, we find the
revisions to the pro forma SGIA adopted
herein are necessary to remedy
treatment that is unjust, unreasonable,
and unduly discriminatory and
preferential because there is no
technical or economic basis to require
small and large generating facilities to
follow different requirements in regards
to voltage and frequency ride through.
Our revisions will place similar
requirements on large generating
facilities and small generating facilities
for ride through capabilities. As
discussed above, the NOPR proposal
received widespread support from
commenters. Further, the absence of
ride through requirements for small
generating facilities may have adverse
impacts on the reliability of the electric
grid. We find that the lack of ride
through requirements for small
generating facilities is unduly
discriminatory. This is due to the
increased presence and impact of small
generating facilities, including
distributed energy resources, on the
electric system, that could create
reliability issues if they do not have the
capability to ride through voltage or
frequency disturbances. Further,
improvements in technology, such as
smart inverters, make it economically
feasible for small generating facilities to
ride through voltage and frequency
disturbances. We acknowledge that
some areas have a greater penetration of
distributed resources than others at this
time. Nevertheless, we believe that the
proposed reforms to the pro forma SGIA
are appropriate on an industry-wide
basis now and that deferred action
would not be appropriate.
22. We recognize the work of the IEEE
1547 Working Group, but we determine
that there is a pressing need to establish
ride through capability requirements at
this time because we expect a
continuing increase in penetration of
small generating facilities. The revisions
to the pro forma SGIA that we now
approve will require the small
reforms to its rules and regulations regarding the
provision and compensation of primary frequency
response.
36 Trade Associations Comments at 14.
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generating facility to implement ride
through settings based on a technical
standard established by the
transmission provider.
23. While Trade Associations point
out that IEEE is revising IEEE Standard
1547, the standard does not currently
require ride through capability. We are
acting now to ensure that all affected
jurisdictional small generating facilities
will have the ride through capability, as
allowed by IEEE Standard 1547a.37
24. We are persuaded by the ISO/RTO
Council’s recommendation to add the
‘‘as tested’’ language to section 1.5.7 of
the pro forma SGIA to harmonize the
requirements between the pro forma
SGIA and the pro forma LGIA. Pursuant
to this ‘‘as tested’’ language, the
interconnection customer must provide
the successfully completed test results
to the transmission provider in a similar
manner as in section 24.4 of the pro
forma LGIA. We believe that the
addition of ‘‘as tested’’ language does
not create an extra burden on either
party to an interconnection agreement
because the pro forma SGIA already
includes testing requirements in section
2.1.38 The ‘‘as tested’’ language assures
the transmission provider that the
required ride through capability can
actually be performed by the small
generating facility.
25. We hereby adopt new section
1.5.7 of the pro forma SGIA showing the
changes made to the Commission’s
proposal in the NOPR as follows:
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1.5.7 The Interconnection Customer shall
ensure ‘‘frequency ride through’’ capability
and ‘‘voltage ride through’’ capability of its
Small Generating Facility. The
Interconnection Customer shall enable these
capabilities such that its Small Generating
Facility shall not disconnect automatically or
instantaneously from the system or
equipment of the Transmission Provider and
any Affected Systems for a defined underfrequency or over-frequency condition, or an
under-voltage or over-voltage condition, as
tested pursuant to section 2.1 of this
agreement. The defined conditions shall be
in accordance with Good Utility Practice and
consistent with any standards and guidelines
that are applied to other generating facilities
in the Balancing Authority Area on a
comparable basis. . . .
26. We recognize the Trade
Associations’ concern about potential
tension between ride through
requirements and anti-islanding
protection. Ensuring the safety of utility
lineworkers is critically important, and
37 As we also explained in the NOPR, the
Commission’s proposal was not intended to impede
the ongoing efforts of the IEEE 1547 Working
Group, and we reiterate that point here. NOPR, 154
FERC ¶ 61,222 at P 8 n.19.
38 Pro forma SGIA, Section 2.1 ‘‘Equipment Test
and Inspection.’’
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an issue the Commission takes
seriously. Based on our consideration of
the record, we believe that the ride
through requirements adopted herein
are technically and safely achievable. In
particular, we note that this Final Rule
provides significant flexibility for
transmission providers to account for
potential safety and islanding concerns.
For example, the transmission provider
can determine specific ride through
settings needed to address those
concerns so long as those settings are
consistent with Good Utility Practice
and any standards and guidelines
applied to other generating facilities on
a comparable basis.
27. Furthermore, we note that
islanding and personnel safety are not
new issues resulting from this Final
Rule; to the contrary, they will continue
to be important concerns regardless of
the reforms adopted in this Final Rule.
Accordingly, we emphasize the
importance of implementing ride
through requirements through careful
coordination between the
interconnection customer and the
transmission provider, as well as the
utilization of appropriate safety
procedures for utility personnel,
particularly effective and thorough
communication for lineworkers in the
field, when performing remedial actions
following a system disturbance. We
support the continued efforts by
industry to explore innovative ways to
detect island conditions in order to
mitigate the risk of unintentional
islands.
28. In light of our goal to prevent
undue discrimination, we seek to
provide guidelines that will be applied
to generating facilities on a comparable
basis, while allowing for justified
differences on a case by case basis. For
example, if a transmission provider
believes a particular facility has a higher
risk of unintentional islanding due to
specific conditions on that facility, the
revisions to the pro forma SGIA will
permit the transmission provider to
coordinate with the small generating
facility to set ride through settings
appropriate for those conditions, in
accordance with Good Utility Practice
and the appropriate technical standards.
For facilities with a lower risk of
forming an unintentional island, the
transmission provider can implement a
longer ride through requirement, in
accordance with Good Utility Practice
and the appropriate technical standards.
We believe that the flexibility provided
by section 1.5.7 allows for appropriate
ride through requirements while
recognizing the need to address any
safety concerns.
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B. Referencing Specific Technical
Standards
1. NOPR Proposal
29. In the NOPR, the Commission
proposed to avoid prescriptive
frequency and voltage ride through
requirements to allow for the
development of appropriate systemspecific standards, noting that the
standards can be based on work
developed by recognized standards
settings bodies, such as IEEE.
2. Comments
30. Commenters request that the
proposed rule contain explicit
references to standards such as the
Reliability Standards and IEEE and UL
standards.39 The ISO/RTO Council
states that Reliability Standards already
provide requirements for coordination
of automatic under-frequency generator
tripping with automatic underfrequency load shedding programs that
should be incorporated in the new ride
through requirements. The ISO/RTO
Council suggests that the pro forma
SGIA explicitly reference Reliability
Standard PRC–024 (Generator
Frequency and Voltage Protective Relay
Settings) and applicable regional
Reliability Standards as part of the
definition of ‘‘Good Utility Practice’’
and for the coordination of automatic
generator tripping with automatic load
shedding.40 The ISO/RTO Council also
recommends that the pro forma SGIA
refer to the Reliability Standards and
regional Reliability Standards for
coordination of automatic generator
tripping with automatic load shedding,
and as appropriate, permit individual
transmission providers to also reference
their automatic load-shed program.
31. Commenters assert that specifying
certain technical standards would be
beneficial for consistent enforceability;
specifically, some commenters suggest
that the pro forma SGIA reference IEEE
and UL 1741 standards to describe
‘‘Good Utility Practice.’’ 41 EPRI and
IEEE comment that failure to harmonize
ride through requirements with the
proposed draft IEEE 1547 requirements
may introduce confusion and ultimately
delay testing and compliance, exposing
the electric system to an increased
reliability risk.42 PNM recognizes that
there are challenges to developing
specific settings applicable to all small
generating facilities.43 However, PNM
states that the Commission should still
39 ISO/RTO
Council Comments at 7.
at 6–7.
41 PNM Comments at 3; EPRI Comments at 13;
IEEE Comments at 2.
42 EPRI Comments at 13; IEEE Comments at 2.
43 PNM Comments at 2.
40 Id.
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consider documenting some ride
through expectation similar to those
outlined in the LGIA requirements.
PNM requests that the pro forma SGIA
revisions consider a minimum ride
through duration based on fault clearing
times and a minimum voltage. PNM also
requests that the Commission specify
the location where the frequency and
voltage measurements are taken to
comply with the requirements, such as
the point of interconnection.
32. SoCal Edison observes that the
California Public Utilities Commission
(CPUC) has established, through its
retail Rule 21 tariff, smart inverter
requirements for small generators
interconnecting to the distribution
systems of California’s investor owned
utilities, and low/high voltage ride
through and low/high frequency ride
through are part of the new required
capabilities for small generators.44
SoCal Edison explains that the CPUC
ordered all investor owned utilities ‘‘to
seek approval as may be needed for
conforming changes to harmonize their
federal wholesale Tariffs
interconnection specifications with the
revisions to Electric Tariff Rule 21.’’ 45
3. Commission Determination
33. We are not persuaded by
commenters’ arguments for the need to
reference specific technical standards
and decline to incorporate by reference
any specific standard into the pro forma
SGIA or to specify ride through duration
and voltage and frequency levels. We
therefore decline to modify the NOPR
proposal in this regard.
34. To accommodate the differences
in voltage and frequency ride through
capabilities inherent in the different
generation technologies, we believe that
requiring basic performance
expectations without explicitly
specifying the duration or voltage and
frequency levels allows the flexibility to
apply appropriate ride through settings
with coordination and approval of the
transmission operator. As EPRI and
IEEE note, the ride through requirement
framework in the draft IEEE Standard
1547 is being structured along
‘‘performance categories’’ that take into
account the technological differences of
various types of small generating
facilities. Once finalized, IEEE Standard
1547 may be used as a technical guide
to meet the requirements adopted
herein. Until revisions to IEEE Standard
1547 are finalized, however,
transmission providers and affected
interconnection customers must
coordinate appropriate alternative
44 SoCal
Edison Comments at 3.
45 Id.
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frequency and voltage ride through
settings.
35. Furthermore, as a pragmatic
matter, by setting minimum ride
through capability requirements that are
not tied to a specific standard, the
requirements in section 1.5.7 of the pro
forma SGIA would remain applicable
following any updates from IEEE
Standard 1547 or other applicable
standards, without having to modify the
pro forma SGIA each time any such
standard is updated.
36. In response to PNM’s clarification
request, we clarify that the point of
interconnection is the appropriate place
to measure frequency and voltage to
comply with the ride through
requirements.
C. Regional Differences
1. NOPR Proposal
37. The Commission proposed to
permit RTOs and ISOs to seek
‘‘independent entity variations’’ from
the proposed revisions to the pro forma
SGIA.
2. Comments
38. Multiple commenters support the
Commission’s proposal to permit RTOs
and ISOs to seek ‘‘independent entity
variations’’ from the proposed revisions
to the pro forma SGIA.46
39. Trade Associations request that
the Commission also affirm the ability
of transmission providers that are not
members of RTOs or ISOs to seek
variations from the pro forma SGIA to
ensure consistency with regional
reliability requirements. Trade
Associations explain that differences in
resource penetration and configuration
(such as state renewable portfolio
standards or wind generation in remote
locations) have led to regional reliability
requirements. Trade Associations note
that the Commission recognized in
Order No. 2003 that such regional
reliability requirements might justify
variations to pro forma interconnection
agreements and procedures.47 SoCal
Edison believes that, to the extent that
some regions may need additional time
to implement the proposed ride through
requirements on small generating
facilities, the Commission should grant
such time.48
3. Commission Determination
40. We adopt the NOPR proposal and
permit ISOs and RTOs to seek
‘‘independent entity variations’’ from
46 Trade Associations Comments at 12–13; SoCal
Edison Comments at 4; ISO/RTO Council
Comments at 6.
47 Trade Associations Comments at 12–13.
48 SoCal Edison Comments at 4.
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50295
revisions to the pro forma SGIA.49 Also,
as proposed in the NOPR, if a
transmission provider seeks a deviation
from section 1.5.7 of the pro forma
SGIA, it must demonstrate that the
deviation is consistent with or superior
to the principles set forth in this Final
Rule.
41. In addition, we clarify that we will
also consider requests for ‘‘regional
reliability variations,’’ provided that
such requests are supported by
references to regional Reliability
Standards, explain why these regional
Reliability Standards support the
requested variation, and include the text
of the referenced Reliability
Standards.50 While some regions
currently have greater penetration of
small generation facilities than others,
we are acting now to set a national
minimum ride through capability before
future increases in deployment of small
generation facilities.
IV. Compliance and Implementation
42. Section 35.28(f)(1) of the
Commission’s regulations requires every
public utility with a non-discriminatory
open access transmission tariff OATT
on file to also have an SGIA on file with
the Commission.51
43. We reiterate that the requirements
of this Final Rule apply to all newly
interconnecting small generating
facilities that execute or request the
unexecuted filing of an SGIA on or after
the effective date of this Final Rule as
well as existing interconnection
customers that, pursuant to a new
interconnection request, execute or
request the unexecuted filing of a new
or modified SGIA on or after the
effective date.
44. We require each public utility
transmission provider that has an SGIA
within its OATT to submit a compliance
filing within 65 days following
publication in the Federal Register.52
The compliance filing must demonstrate
that it meets the requirements set forth
in this proposal.
45. The Commission recently issued
Order No. 827, a final rule in Docket No.
RM16–1–000, directing transmission
providers to submit SGIA revisions
49 See Order No. 792, 145 FERC ¶ 61,159 at P 274
(citing Order No. 2003, FERC Stats. & Regs. ¶ 31,146
at PP 822–827).
50 See id. P 273 (citing Order No. 2006, FERC
Stats. & Regs. ¶ 31,180 at P 546).
51 18 CFR 35.28(f)(1).
52 For purposes of this Final Rule, a public utility
is a utility that owns, controls, or operates facilities
used for transmitting electric energy in interstate
commerce, as defined by the FPA. See 16 U.S.C.
824(e). A non-public utility that seeks voluntary
compliance with the reciprocity condition of an
OATT may satisfy that condition by filing an
OATT, which includes an SGIA.
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related to reactive power requirements
to the Commission.53 Those compliance
filings are due to the Commission on
September 21, 2016. To facilitate
administrative efficiency, we will
require the compliance filings for this
Final Rule and Order No. 827 to be filed
in one combined filing. Once this Final
Rule is published in the Federal
Register, the Commission will provide a
short extension to the compliance dates
in both proceedings such that the
compliance dates are the same.
46. As discussed above, we are not
requiring changes to interconnection
agreements that were executed prior to
the effective date of this Final Rule.
Instead, the requirements of this Final
Rule apply to newly interconnecting
small generating facilities that execute
or request the unexecuted filing of an
interconnection agreement on or after
the effective date. The requirements of
this Final Rule also apply to existing
small generating facilities that, pursuant
to a new interconnection request,
require new or modified
interconnection agreements that are
executed or requested to be filed
unexecuted on or after the effective
date.
47. Some public utility transmission
providers may have provisions in their
existing SGIAs or other document(s)
subject to the Commission’s jurisdiction
that the Commission has deemed to be
consistent with or superior to the pro
forma SGIA or are permissible under the
independent entity variation standard or
regional reliability standard.54 Where
these provisions would be modified by
this Final Rule, public utility
transmission providers must either
comply with this Final Rule or
demonstrate that these previouslyapproved variations continue to be
consistent with or superior to the pro
forma SGIA as modified by this Final
Rule or continue to be permissible
under the independent entity variation
standard or regional reliability
standard.55
Power Requirements for NonSynchronous Generation, Order No. 827, 81 FR
40,793 (Jun. 23, 2016), 155 FERC ¶ 61,277 (2016).
54 See Order No. 792, 145 FERC ¶ 61,159 at P 270.
55 See 18 CFR 35.28(f)(1)(i).
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53 Reactive
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48. We find that transmission
providers that are not public utilities
must adopt the requirements of this
Final Rule as a condition of maintaining
the status of their safe harbor tariff or
otherwise satisfying the reciprocity
requirement of Order No. 888.56
V. Information Collection Statement
49. The following collection of
information contained in this Final Rule
is subject to review by the Office of
Management and Budget (OMB)
regulations under section 3507(d) of the
Paperwork Reduction Act of 1995.57
OMB’s regulations require approval of
certain information collection
requirements imposed by agency
rules.58 Upon approval of a collection of
information, OMB will assign an OMB
control number and expiration date.
Respondents subject to the filing
requirements of this Final Rule will not
be penalized for failing to respond to
this collection of information unless the
collection of information displays a
valid OMB control number.
50. The reforms adopted in this Final
Rule revise the Commission’s pro forma
SGIA in accordance with section
35.28(f)(1) of the Commission’s
regulations.59 This Final Rule applies to
all newly interconnecting small
generating facilities that execute or
request the unexecuted filing of an SGIA
on or after the effective date of this Final
Rule as well as existing interconnection
customers that, pursuant to a new
interconnection request, execute or
request the unexecuted filing of a new
or modified SGIA on or after the
effective date, to ensure frequency ride
through capability and voltage ride
56 Promoting Wholesale Competition Through
Open Access Non-Discriminatory Transmission
Services by Public Utilities; Recovery of Stranded
Costs by Public Utilities and Transmitting Utilities,
Order No. 888, FERC Stats. & Regs. ¶ 31,036, at
31,760–63 (1996), order on reh’g, Order No. 888–
A, FERC Stats. & Regs. ¶ 31,048, order on reh’g,
Order No. 888–B, 81 FERC ¶ 61,248 (1997), order
on reh’g, Order No. 888–C, 82 FERC ¶ 61,046
(1998), aff’d in relevant part sub nom. Transmission
Access Policy Study Group v. FERC, 225 F.3d 667
(D.C. Cir. 2000), aff’d sub nom. New York v. FERC,
535 U.S. 1 (2002).
57 44 U.S.C. 3507(d).
58 5 CFR 1320.11.
59 18 CFR 35.28(f)(1).
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through capability in accordance with
good utility practice and consistent with
any standards and guidelines that are
applied to other generating facilities in
the balancing authority area on a
comparable basis. The reforms adopted
in this Final Rule would require filings
of SGIAs with the Commission. The
Commission anticipates the revisions
required by this Final Rule, once
implemented, will not significantly
change existing burdens on an ongoing
basis. With regard to those public utility
transmission providers that believe that
they already comply with the revisions
adopted in this Final Rule, they can
demonstrate their compliance in the
filing required 65 days after the effective
date of this Final Rule. The Commission
will submit the proposed reporting
requirements to OMB for its review and
approval under section 3507(d) of the
Paperwork Reduction Act.60
51. While the Commission expects the
revisions adopted in this Final Rule will
provide significant benefits, the
Commission understands that
implementation would entail some
costs. The Commission solicited
comments on the accuracy of provided
burden and cost estimates and any
suggested methods for minimizing the
respondents’ burdens. The Commission
did not receive any comments
concerning its burden or cost estimates.
As explained above, we will require the
compliance filings for this Final Rule
and Order No. 827 to be filed in one
combined filing. We expect that this
will reduce the burden on public utility
transmission providers at the time the
Commission gives notice of the
extension of the compliance date and
requirement to combine compliance
filings.
Burden Estimate: The Commission
believes that the burden estimates below
are representative of the average burden
on respondents. The estimated burden
and cost for the requirements adopted in
this Final Rule follow.61
60 44
U.S.C. 3507(d).
staff estimates that industry is
similarly situated in terms of hourly cost (wages
plus benefits). Based on the Commission 2016
average cost (wages plus benefits), $74.50/hour is
used.
61 Commission
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50297
FERC 516A REVISIONS IN RM16–8
Number of
respondents 62
Annual
number of
responses per
respondent
Total number
of responses
Average burden
(hrs.) & cost ($)
per response
Total annual burden
hrs. & total annual
cost ($)
(1)
(2)
(1)*(2)=(3)
(4)
(3)*(4)=(5)
118
1
118
7.5 hrs.; $558.75 ........
885 hrs.; $65,932.50
Total ....................................................
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Conforming SGIA changes to incorporate
revisions.
........................
........................
118
7.5 hrs.; $558.75 ........
885 hrs.; $65,932.50
Cost to Comply: The Commission has
projected the additional cost of
compliance as follows: 63
• Year 1: $65,932.50 for all affected
entities ($558.75/utility)
• Year 2 and subsequent years: $0
After implementation in Year 1, the
reforms proposed in this Final Rule
would be complete.
Title: FERC–516A, Standardization of
Small Generator Interconnection
Agreements and Procedures.
Action: Revision of currently
approved collection of information.
OMB Control No.: 1902–0203.
Respondents for This Rulemaking:
Businesses or other for profit and/or
not-for-profit institutions.
Frequency of Information: One-time
during Year 1.
Necessity of Information: The
Commission adopts changes to the pro
forma SGIA in order to more efficiently
and cost-effectively interconnect
generating facilities no larger than 20
MW (small generating facilities) to
Commission-jurisdictional transmission
systems. The purpose of this Final Rule
is to revise the pro forma SGIA so small
generating facilities can be reliably and
efficiently integrated into the electric
grid and to ensure that Commissionjurisdictional services are provided at
rates, terms and conditions that are just
and reasonable and not unduly
discriminatory or preferential. This
Final Rule seeks to achieve this goal by
amending the pro forma SGIA to
include new section 1.5.7.
Internal Review: The Commission has
reviewed the changes and has
determined that the changes are
necessary. These requirements conform
to the Commission’s need for efficient
information collection, communication,
and management within the energy
industry. The Commission has assured
itself, by means of internal review, that
62 Number
of Applicable Registered Entities.
costs for Year 1 would consist of filing
proposed changes to the pro forma SGIA with the
Commission within 65 days of the effective date of
the final revision plus initial implementation. The
Commission does not expect any ongoing costs
beyond the initial compliance in Year 1.
63 The
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there is specific, objective support for
the burden estimates associated with the
information collection requirements.
52. Interested persons may obtain
information on the reporting
requirements by contacting the
following: Federal Energy Regulatory
Commission, 888 First Street NE.,
Washington, DC 20426 [Attention: Ellen
Brown, Office of the Executive Director],
email: DataClearance@ferc.gov, Phone:
(202) 502–8663, fax: (202) 273–0873.
53. Comments on the collection of
information and the associated burden
estimate in the Final Rule should be
sent to the Commission in this docket
and may also be sent to the Office of
Information and Regulatory Affairs,
Office of Management and Budget, 725
17th Street NW., Washington, DC 20503
[Attention: Desk Officer for the Federal
Energy Regulatory Commission], at the
following email address: oira_
submission@omb.eop.gov. Please
reference OMB Control No. 1902–0203
and the docket number of this
rulemaking in your submission.
VI. Regulatory Flexibility Act
54. The Regulatory Flexibility Act of
1980 (RFA) 64 generally requires a
description and analysis of rules that
will have significant economic impact
on a substantial number of small
entities. The RFA does not mandate any
particular outcome in a rulemaking. It
only requires consideration of
alternatives that are less burdensome to
small entities and an agency
explanation of why alternatives were
rejected.
55. The Small Business
Administration (SBA) revised its size
standards (effective January 22, 2014)
for electric utilities from a standard
based on megawatt hours to a standard
based on the number of employees,
including affiliates. Under SBA’s
standards, some transmission owners
will fall under the following category
and associated size threshold: Electric
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64 5
U.S.C. 601–612.
Frm 00015
Fmt 4700
Sfmt 4700
bulk power transmission and control, at
500 employees.65
56. The Commission estimates that
the total number of public utility
transmission providers that would have
to modify the SGIAs within their
currently effective OATTs is 118. Of
these, the Commission estimates that
approximately 43% are small entities.
The Commission estimates the average
cost to each of these entities will be
minimal, requiring on average 7.5 hours
or $558.75. According to SBA guidance,
the determination of significance of
impact ‘‘should be seen as relative to the
size of the business, the size of the
competitor’s business, and the impact
the regulation has on larger
competitors.’’ 66 The Commission does
not consider the estimated burden to be
a significant economic impact. As a
result, the Commission certifies that the
reforms adopted in this Final Rule
would not have a significant economic
impact on a substantial number of small
entities.
VII. Environmental Analysis
57. 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.67 As we stated in the
NOPR, the Commission concludes that
neither an Environmental Assessment
nor an Environmental Impact Statement
is required for the revisions adopted in
this Final Rule under section
380.4(a)(15) of the Commission’s
regulations, which provides a
categorical exemption for approval of
actions under sections 205 and 206 of
the FPA relating to the filing of
schedules containing all rates and
65 13 CFR 121.201, Sector 22 (Utilities), NAICS
code 221121 (Electric Bulk Power Transmission and
Control).
66 U.S. Small Business Administration, A Guide
for Government Agencies How to Comply with the
Regulatory Flexibility Act, at 18 (May 2012), https://
www.sba.gov/sites/default/files/advocacy/rfaguide_
0512_0.pdf.
67 Regulations Implementing National
Environmental Policy Act, Order No. 486, FERC
Stats. & Regs. ¶ 30,783 (1987).
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charges for the transmission or sale of
electric energy subject to the
Commission’s jurisdiction, plus the
classification, practices, contracts and
regulations that affect rates, charges,
classifications, and services.68 The
revisions adopted in this Final Rule
would update and clarify the
application of the Commission’s
standard interconnection requirements
to small generating facilities.
58. Therefore, this Final Rule falls
within the categorical exemptions
provided in the Commission’s
regulations, and as a result neither an
Environmental Impact Statement nor an
Environmental Assessment is required.
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VIII. Document Availability
59. 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 5:00 p.m.
Eastern time) at 888 First Street NE.,
Room 2A, Washington, DC 20426.
60. From the Commission’s Home
Page on the Internet, this information is
available on 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 of this
document, excluding the last three
digits, in the docket number field.
61. User assistance is available for
eLibrary and the Commission’s Web site
during normal business hours from the
Commission’s Online Support at (202)
502–6652 (toll free at 1–866–208–3676)
or email at ferconlinesupport@ferc.gov,
or the Public Reference Room at (202)
502–8371, TTY (202) 502–8659. Email
the Public Reference Room at
public.referenceroom@ferc.gov.
IX. Effective Date and Congressional
Notification
62. The Final Rule is effective October
5, 2016. However, as noted above, the
requirements of this Final Rule will
apply only to all newly interconnecting
small generating facilities that execute
or request the unexecuted filing of an
SGIA on or after the effective date of
this Final Rule as well as existing
interconnection customers that,
pursuant to a new interconnection
request, execute or request the
unexecuted filing of a new or modified
SGIA on or after the effective date. The
68 18
CFR 380.4(a)(15).
VerDate Sep<11>2014
17:30 Jul 29, 2016
Jkt 238001
Commission has determined, with the
concurrence of the Administrator of the
Office of Information and Regulatory
Affairs of OMB, that this Final Rule is
not a ‘‘major rule’’ as defined in section
351 of the Small Business Regulatory
Enforcement Fairness Act of 1996. This
Final Rule is being submitted to the
Senate, House, Government
Accountability Office, and Small
Business Administration.
By the Commission.
Issued: July 21, 2016.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
Note: The following Attachment will not
appear in the Code of Federal Regulations.
Appendix A—List of Substantive
Commenters (RM16–8–000)
Bonneville Bonneville Power
Administration
Trade Associations Edison Electric
Institute/American Public Power
Association/Large Public Power Council/
National Rural Electric Cooperative
Association
EPRI Electric Power Research Institute
Idaho Power Idaho Power Company
IEEE Institute of Electrical and Electronics
Engineers
ISO/RTO Council ISO/RTO Council
NERC North American Electric Reliability
Corporation
PG&E Pacific Gas and Electric Company
Peak Reliability Peak Reliability
PNM Public Service Company of New
Mexico
SoCal Edison Southern California Edison
Company
In addition, Entergy Services, Inc.
submitted non-substantive comments.
[FR Doc. 2016–17843 Filed 7–29–16; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF LABOR
Employment and Training
Administration
20 CFR Part 620
RIN 1205–AB63
Federal-State Unemployment
Compensation Program; Middle Class
Tax Relief and Job Creation Act of
2012 Provision on Establishing
Appropriate Occupations for Drug
Testing of Unemployment
Compensation Applicants
Employment and Training
Administration, Labor.
ACTION: Final rule.
AGENCY:
The Employment and
Training Administration (ETA) of the
U.S. Department of Labor (Department)
SUMMARY:
PO 00000
Frm 00016
Fmt 4700
Sfmt 4700
is issuing this final rule to establish, for
State Unemployment Compensation
(UC) program purposes, occupations
that regularly conduct drug testing.
These regulations implement the
Middle Class Tax Relief and Job
Creation Act of 2012 (the Act)
amendments to the Social Security Act
(SSA), permitting States to enact
legislation that would allow State UC
agencies to conduct drug testing on UC
applicants for whom suitable work (as
defined under the State law) is available
only in an occupation that regularly
conducts drug testing (as determined
under regulations issued by the
Secretary of Labor (Secretary)). States
may deny UC to an applicant who tests
positive for drug use under these
circumstances. The Secretary is required
under the SSA to issue regulations
determining those occupations that
regularly conduct drug testing.
DATES: Effective Date: This final rule is
effective September 30, 2016.
FOR FURTHER INFORMATION CONTACT:
Suzanne Simonetta, Office of
Unemployment Insurance, ETA, U.S.
Department of Labor, 200 Constitution
Avenue NW., Room S–4524,
Washington, DC 20210; telephone: (202)
693–3225 (this is not a toll-free
number); email: simonetta.suzanne@
dol.gov.
SUPPLEMENTARY INFORMATION:
I. Background
On October 9, 2014, The Department
published a Notice of Proposed
Rulemaking (NPRM) concerning
occupations that regularly conduct drug
testing at 79 FR 61013. The Department
invited comments through December 8,
2014.
II. General Discussion of the Final Rule
On February 22, 2012, President
Obama signed the Act, Public Law 112–
96. Title II of the Act amended section
303, SSA, to add a new subsection (l)
permitting States to drug test UC
applicants as a condition of UC
eligibility under two circumstances. The
first circumstance is if the applicant was
terminated from employment with the
applicant’s most recent employer
because of the unlawful use of a
controlled substance. (Section
303(l)(1)(A)(i), SSA.) The second
circumstance is if the only available
suitable work (as defined in the law of
the State conducting the drug testing)
for an individual is in an occupation
that regularly conducts drug testing (as
determined in regulations by the
Secretary). If an applicant who is tested
for drug use under either circumstance
tests positive, the State may deny UC to
E:\FR\FM\01AUR1.SGM
01AUR1
]]>Agencies
[Federal Register Volume 81, Number 147 (Monday, August 1, 2016)]
[Rules and Regulations]
[Pages 50290-50298]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-17843]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 35
[Docket No. RM16-8-000; Order No. 828]
Requirements for Frequency and Voltage Ride Through Capability of
Small Generating Facilities
AGENCY: Federal Energy Regulatory Commission, Department of Energy.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Energy Regulatory Commission (Commission) is
modifying the pro forma Small Generator Interconnection Agreement
(SGIA). The pro forma SGIA establishes the terms and conditions under
which public utilities must provide interconnection service to small
generating facilities of no larger than 20 megawatts. The Commission is
modifying the pro forma SGIA to require newly interconnecting small
generating facilities to ride through abnormal frequency and voltage
events and not disconnect during such events. The specific ride through
settings must be consistent with Good Utility Practice and any
standards and guidelines applied by the transmission provider to other
generating facilities on a comparable basis. The Commission already
requires generators interconnecting under the Large Generator
Interconnection Agreement to meet such requirements, and it would be
unduly discriminatory not to also impose these requirements on small
generating facilities. The Commission concludes that newly
interconnecting small generating facilities should have ride through
requirements comparable to large generating facilities.
DATES: This final rule will become effective October 5, 2016.
FOR FURTHER INFORMATION CONTACT:
Monica Taba (Technical Information), Office of Electric Reliability,
Federal Energy Regulatory Commission, 888 First Street NE., Washington,
DC
[[Page 50291]]
20426, (202) 502-6789, Monica.Taba@ferc.gov.
Alan Rukin (Legal Information), Office of the General Counsel, Federal
Energy Regulatory Commission, 888 First Street NE., Washington, DC
20426, (202) 502-8502, Alan.Rukin@ferc.gov.
SUPPLEMENTARY INFORMATION:
Order No. 828
Final Rule
1. In this Final Rule, the Commission modifies the pro forma Small
Generator Interconnection Agreement (SGIA) originally set forth in
Order No. 2006 \1\ and revised in Order No. 792 \2\ to require small
generating facilities interconnecting through the SGIA to ride through
abnormal frequency and voltage events and not disconnect during such
events.\3\ Pursuant to section 206 of the Federal Power Act (FPA), the
Commission finds that, given the changes to conditions since the
Commission last evaluated whether to impose ride through requirements
on small generating facilities, the revisions to the pro forma SGIA are
necessary to remedy undue discrimination by ensuring that small
generating facilities have ride through requirements comparable to
large generating facilities.\4\
---------------------------------------------------------------------------
\1\ Standardization of Small Generator Interconnection
Agreements and Procedures, Order No. 2006, FERC Stats. & Regs. ]
31,180, order on reh'g, Order No. 2006-A, FERC Stats. & Regs. ]
31,196 (2005), order granting clarification, Order No. 2006-B, FERC
Stats. & Regs. ] 31,221 (2006) (Order No. 2006).
\2\ Small Generator Interconnection Agreements and Procedures,
Order No. 792, 145 FERC ] 61,159 (2013), clarified, Order No. 792-A,
146 FERC ] 61,214 (2014) (Order No. 792).
\3\ In Order No. 2003, the Commission defined ``ride through''
to mean a generating facility staying connected to and synchronized
with the transmission system during system disturbances within a
range of over- and under-frequency conditions, in accordance with
Good Utility Practice. Standardization of Generator Interconnection
Agreements and Procedures, Order No. 2003, FERC Stats. & Regs. ]
31,146, at P 562 n.88 (2003), order on reh'g, Order No. 2003-A, FERC
Stats. & Regs. ] 31,160, order on reh'g, Order No. 2003-B, FERC
Stats. & Regs. ] 31,171 (2004), order on reh'g, Order No. 2003-C,
FERC Stats. & Regs. ] 31,190 (2005), aff'd sub nom. Nat'l Ass'n of
Regulatory Util. Comm'rs v. FERC, 475 F.3d 1277 (D.C. Cir. 2007),
cert. denied, 552 U.S. 1230 (2008) (Order No. 2003). Reliability
Standard PRC-024-1 requires bulk electric system generation to ride
through over- and under-voltage conditions.
\4\ 16 U.S.C. 824e.
---------------------------------------------------------------------------
2. As a result of this Final Rule, small generating facilities are
required to not disconnect automatically or instantaneously from the
system or equipment of the transmission provider and any affected
systems for an under-frequency or over-frequency condition, or an
under-voltage or over-voltage condition. Furthermore, the transmission
provider must coordinate the small generating facility's protective
equipment settings with any automatic load shedding program (e.g.,
under-frequency load shedding, under-voltage load shedding). The
specific ride through settings must be consistent with Good Utility
Practice and any standards and guidelines applied by the transmission
provider to other generating facilities on a comparable basis. These
requirements will apply to new interconnection customers that execute
or request the unexecuted filing of an SGIA on or after the effective
date of this Final Rule. These requirements will also apply to existing
interconnection customers that, pursuant to a new interconnection
request, execute or request the unexecuted filing of a new or modified
SGIA on or after the effective date of this Final Rule.
I. Background
3. The pro forma SGIA establishes the terms and conditions under
which public utilities must provide interconnection service to small
generating facilities of no larger than 20 megawatts (MW). Currently,
the pro forma SGIA does not mandate that small generating facilities
have the capability to ride through voltage or frequency disturbances.
4. In Order No. 2006, the Commission explored whether voltage ride
through requirements proposed for large wind generating facilities
should apply to small generating facilities.\5\ A commenter during that
proceeding asked the Commission to implement ride through standards for
small generating facilities similar to those proposed for large
generating facilities. However, other commenters responded that special
capabilities, such as low voltage ride through, were not needed for any
small generating facility, whether wind-powered or not. The Commission
concluded that wind generating facilities interconnecting under Order
No. 2006 would be small and would have minimal impact on the
transmission provider's electric system and, therefore, need not be
subject to ride through requirements.\6\
---------------------------------------------------------------------------
\5\ Order No. 2006, FERC Stats. & Regs. ] 31,180 at P 24.
\6\ Id. The penetration of small generating facilities has
increased since the Commission analyzed the impact of small
generating facilities in Order No. 2006. See infra P 8.
---------------------------------------------------------------------------
5. More recently, the Commission again addressed these requirements
with regard to small generating facilities in Order No. 792.\7\ In that
proceeding, the Commission proposed to revise section 1.5.4 of the pro
forma SGIA to address the reliability concern related to automatic
disconnection of small generating facilities during over- and under-
frequency events, which could become a greater concern at high
penetrations of distributed energy resources.\8\ The proposed revisions
to section 1.5.4 would have required the interconnection customer to
design, install, maintain, and operate its small generating facility,
in accordance with the latest version of the applicable standards to
prevent automatic disconnection during over- and under-frequency
events.\9\
---------------------------------------------------------------------------
\7\ Order No. 792, 145 FERC ] 61,159.
\8\ Small Generator Interconnection Agreements and Procedures,
Notice of Proposed Rulemaking, 142 FERC ] 61,049, at P 46 (2013)
(Order No. 792 NOPR). NERC defines distributed energy resources to
mean resources that are distributed geographically and not
centralized like traditional generation resources. NERC, Essential
Reliability Services Task Force Measures Report, (Nov. 2015), https://www.nerc.com/comm/Other/essntlrlbltysrvcstskfrcDL/ERSTF%20Framework%20Report%20-%20Final.pdf.
\9\ Id.
---------------------------------------------------------------------------
6. The Commission declined to adopt this proposed revision in Order
No. 792.\10\ Instead, the Commission recognized that the Institute of
Electrical and Electronics Engineers (IEEE) was, at the time, in the
process of amending IEEE Standard 1547, which is an interconnection
standard for interconnecting distributed resources with electric power
systems that is referenced in the Small Generator Interconnection
Procedures.\11\ The Commission also noted that IEEE was about to begin
a full IEEE Standard 1547 revision process in 2014, where frequency and
voltage ride through requirements in the standard were to be evaluated.
The Commission concluded that it would continue to monitor the IEEE
Standard 1547 revision process and could revise the pro forma SGIA as
it relates to IEEE Standard 1547 in the future, if necessary.\12\
---------------------------------------------------------------------------
\10\ Order No. 792, 145 FERC ] 61,159 at P 220.
\11\ Id.
\12\ Id.
---------------------------------------------------------------------------
7. Since the Commission issued Order No. 792, IEEE has completed a
partial revision of IEEE Standard 1547, which is IEEE Standard 1547a.
IEEE is now in the process of fully revising IEEE Standard 1547. The
partially revised standard, IEEE Standard 1547a, permits generating
facilities to have wider trip settings compared with IEEE Standard
1547. These wider trip settings allow generating facilities to stay
connected to the grid for greater frequency or voltage excursions
facilitating their ability to ride through such excursions. IEEE
Standard 1547a also permits--but does
[[Page 50292]]
not mandate--ride through requirements.\13\
---------------------------------------------------------------------------
\13\ IEEE Standard 1547a contains ``must trip'' requirements; it
does not have ``must ride through'' requirements. By widening the
trip settings, IEEE Standard 1547a permits generating facilities to
trip at a later time. This change effectively allows generating
facilities to ride through disturbances, but they are not required
to do so.
---------------------------------------------------------------------------
8. Following the Commission's evaluation of the need for ride
through requirements for small generating facilities in the Order Nos.
2006 and 792 rulemaking proceedings, the impact of small generating
facilities on the grid has changed, and the amount has increased. For
example, as the North American Electric Reliability Corporation (NERC)
has noted in multiple reports, the mix of generation resources is
changing and the high penetration of distributed energy resources will
impact the reliability of the electric grid if sufficient care is not
taken to mitigate potential adverse impacts.\14\ NERC also has found
that a lack of coordination between small generating facilities and
Reliability Standards can lead to events where system load imbalance
may increase during frequency excursions or voltage deviations due to
the disconnection of distributed energy resources, which may exacerbate
a disturbance on the Bulk-Power System.\15\ In addition, the Commission
has observed the growth in grid-connected solar photovoltaic generation
since the issuance of Order No. 2006 and the growth in small generator
interconnection requests driven by state renewable portfolio standards,
reductions in cost for solar panels, and deployment of new
technologies.\16\ Moreover, technology now available to newly
interconnecting small generating facilities, such as smart inverters,
permits the capability to ride through frequency and voltage
disturbances.\17\
---------------------------------------------------------------------------
\14\ See NERC Special Report, Potential Bulk System Reliability
Impacts of Distributed Resources (Aug. 2011), https://www.nerc.com/docs/pc/ivgtf/IVGTF_TF-1-8_Reliability-Impact-Distributed-Resources_Final-Draft_2011.pdf; see also NERC Integration of
Variable Generation Task Force Draft Report, Performance of
Distributed Energy Resources During and After System Disturbance
(Dec. 2013), https://www.nerc.com/comm/PC/Integration%20of%20Variable%20Generation%20Task%20Force%2011/IVGTF17_PC_FinalDraft_December_clean.pdf.
\15\ NERC Essential Reliability Services Report at 21.
\16\ See, e.g., Order No. 792, 145 FERC ] 61,159 at P 15; Solar
Energy Indus. Ass'n, Solar Industry Data, https://www.seia.org/research-resources/solar-industry-data (last visited Jul. 5, 2016).
\17\ See Electric Power Research Institute, Recommended Settings
for Voltage and Frequency Ride Through of Distributed Energy
Resources, 28-29 (May 2015), https://www.epri.com/abstracts/Pages/ProductAbstract.aspx?ProductId=000000003002006203.
---------------------------------------------------------------------------
II. Notice of Proposed Rulemaking
9. On March 23, 2016, the Commission issued a Notice of Proposed
Rulemaking that proposed to add new section 1.5.7 to the pro forma
SGIA,\18\ which would require small generating facilities to ride
through defined frequency and voltage disturbances.
---------------------------------------------------------------------------
\18\ Requirements for Frequency and Voltage Ride Through
Capability of Small Generating Facilities, 154 FERC ] 61,222 (2016)
(NOPR).
---------------------------------------------------------------------------
10. In response to the NOPR, eleven entities submitted substantive
comments, which generally support the Commission's proposal.\19\ These
comments have informed our determinations in this Final Rule.
---------------------------------------------------------------------------
\19\ Appendix A lists the entities that submitted comments and
the shortened names used throughout this Final Rule to describe
those entities.
---------------------------------------------------------------------------
III. Discussion
11. For the reasons discussed below, we adopt the NOPR proposal and
require small generating facilities to ride through abnormal frequency
and voltage events comparable to large generating facilities. We find
that, given the changes to conditions since the Commission last
evaluated whether to impose ride through requirements on small
generating facilities, the revisions to the pro forma SGIA are
necessary to remedy undue discrimination by ensuring that small
generating facilities have ride through requirements comparable to
large generating facilities.\20\ Specifically, since the Commission's
last consideration of this issue, IEEE has revised its standards, and
IEEE Standard 1547a now provides wider trip settings that allow small
generating facilities more leeway to ride through disturbances. In
addition, distributed energy resources have had an increasing presence
and impact on the electric system. The absence of ride through
requirements for small generating facilities increases the risk that an
initial voltage or frequency disturbance may cause a significant number
of small generating facilities to trip across a particular area or
Interconnection, further exacerbating the initial disturbance. Large
generating facilities are already subject to ride through requirements
to avoid these types of occurrences.\21\
---------------------------------------------------------------------------
\20\ 16 U.S.C. 824e. The Commission routinely evaluates the
effectiveness of its regulations and policies in light of changing
industry conditions to determine if changes in these conditions and
policies are necessary. See, e.g., Integration of Variable Energy
Resources, Order No. 764, FERC Stats. & Regs, ] 31,331 (2012).
\21\ See Order No. 2003, FERC Stats. & Regs. ] 31,146 at P 562
n.88.
---------------------------------------------------------------------------
12. The Commission acknowledges that some areas have a greater
penetration of distributed resources than others at this time.
Nevertheless, the Commission believes that the proposed reforms to the
pro forma SGIA are appropriate on an industry-wide basis now. The
Commission continues to affirm that this Final Rule is not intended to
interfere with state interconnection procedures or agreements in any
way. The pro forma SGIA applies only to interconnections made subject
to a jurisdictional open access transmission tariff (OATT) for the
purposes of jurisdictional wholesale sales. Similar to the approach in
Order Nos. 2006 and 792, the Commission hopes that the changes to the
pro forma SGIA resulting from this Final Rule will be helpful to states
when updating their own interconnection rules, but the states are under
no obligation to adopt the provisions of the Commission's proposal.\22\
---------------------------------------------------------------------------
\22\ Order No. 792, 145 FERC ] 61,159 at P 27; Order No. 2006,
FERC Stats. & Regs. ] 31,180 at P 8.
---------------------------------------------------------------------------
A. Revision of the Pro Forma SGIA
1. NOPR Proposal
13. In the NOPR, the Commission proposed to revise the pro forma
SGIA to include proposed section 1.5.7, which would require
interconnection customers to ensure the frequency ride through
capability and the voltage ride through capability of small generating
facilities that execute or request the unexecuted filing of
interconnection agreements following the effective date of the proposed
section 1.5.7. Proposed section 1.5.7 would also require a small
generating facility not to disconnect automatically or instantaneously
from the system or equipment of the transmission provider and any
affected systems for an under-frequency or over-frequency condition, or
an under-voltage or over-voltage condition. In addition, the
transmission provider must coordinate the small generating facility's
protective equipment settings with any automatic load shedding program.
2. Comments
14. The substantive comments filed in response to the NOPR
generally support the proposal to modify the pro forma SGIA.\23\
Commenters agree with the need for fair and equitable treatment between
small and large generating
[[Page 50293]]
facilities, the need for effective protections for system operation
while also avoiding increased costs, and the potential to improve
system stability and reliability over the coming years by adopting the
proposed modifications to the pro forma SGIA.\24\ Commenters
acknowledge the proposal's benefits, stating it will simplify
operational conditions, especially considering the rising small
generator penetration levels on the distribution system.\25\ NERC
states that revising the pro forma SGIA to impose ride through
requirements would be consistent with the results of a number of NERC's
reliability assessments.\26\ Trade Associations and PNM agree that the
absence of ride through requirements for small generating facilities
increases the risk that an initial voltage or frequency disturbance may
cause a significant number of small generating facilities to trip
offline, exacerbating the initial disturbance.\27\
---------------------------------------------------------------------------
\23\ Peak Reliability Comments at 3; Idaho Power Comments at 2;
PNM Comments at 1; SoCal Edison Comments at 2; ISO/RTO Council
Comments at 6; Trade Associations Comments at 4; Bonneville Comments
at 1; EPRI Comments at 7; NERC Comments at 2; PG&E Comments at 2.
\24\ SoCal Edison Comments at 2; Peak Reliability Comments at 3;
EPRI Comments at 7.
\25\ PNM Comments at 2; Trade Associations Comments at 7.
\26\ NERC Comments at 4.
\27\ PNM Comments at 2; Trade Associations Comments at 7.
---------------------------------------------------------------------------
15. Idaho Power claims that if more small generation facilities
connect to its system, without the proposed changes to the pro forma
SGIA, it would become increasingly difficult for it to comply with
Reliability Standards PRC-006-2 (Automatic Underfrequency Load
Shedding) and BAL-003-1.1 (Frequency Response and Frequency Bias
Setting).\28\
---------------------------------------------------------------------------
\28\ Idaho Power Comments at 2.
---------------------------------------------------------------------------
16. The ISO/RTO Council recommends that the proposed required
characteristics for small generating facilities should be demonstrated
``as tested,'' and that this should be specified in the pro forma SGIA
section 1.5.7. The ISO/RTO Council notes that demonstrating
characteristics ``as tested'' is already required under section 24 of
the large generator interconnection agreement (LGIA). The ISO/RTO
Council further explains that, while the pro forma SGIA does not
presently have such language, the ``as tested'' requirement applies to
small generating facilities pursuant to the directives in Order No.
2006.\29\
---------------------------------------------------------------------------
\29\ ISO/RTO Council Comments at 7 (citing Order No. 2006, FERC
Stats. & Regs. ] 31,180 at P 59).
---------------------------------------------------------------------------
17. Some commenters request that the Commission delay
implementation of the Final Rule. While EPRI does not believe that
additional action is required for other existing interconnected small
generating facilities, EPRI comments that additional reliability
studies may be required if aggregate penetration levels increase
sufficiently before the modifications to the pro forma SGIA and revised
IEEE Standard 1547 become effective.\30\ EPRI notes the need for timely
revision and balloting of IEEE Standard 1547, as well as prompt
adoption of the standard.\31\ Trade Associations suggest waiting until
after key industry standards are approved and the safety and
effectiveness of smart inverter technology is validated. \32\ Trade
Associations request time to allow entities to resolve outstanding
concerns such as personnel and asset safety, as well as the ability to
effectively coordinate protections systems between the local utility
and interconnecting resources.\33\ EPRI and IEEE assert that relevant
stakeholders, including transmission owners and transmission operators,
should engage with the IEEE Standard 1547 revision process to ensure
that the final framework and requirements for ride through can be
consistently applied to meet individual system needs.\34\
---------------------------------------------------------------------------
\30\ EPRI Comments at 7.
\31\ Id. at 7-8.
\32\ Trade Associations Comments at 7-8; EPRI Comments at 7-8.
\33\ Trade Associations Comments at 7-8.
\34\ EPRI Comments at 7-8.
---------------------------------------------------------------------------
18. Trade Associations claim that the new ride through capability
requirements are only possible through smart inverter technology, but
point out that key associated specifications contained in the reference
standards remain unapproved. Trade Associations explain that
distribution feeders are often designed as radial feeders that depend
on remote generation to quickly disconnect when the utility source is
disconnected. According to Trade Associations, failure to do so may
result in unintentional islands which create safety hazards for
personnel and customers, as well as liability concerns. Trade
Associations caution that directing small generation facilities to ride
through disturbances may create islanding conditions and relaxed
response to fault conditions.
19. Further, Trade Associations claim that more industry discussion
is needed to ensure that small generators' interconnections meet the
unique regional utility safety and reliability concerns before the
proposed revisions to section 1.5.7 of the pro forma SGIA are adopted.
Trade Associations suggest that the Commission include the issues in
this proceeding in the three regional technical conferences recommended
by Edison Electric Institute in Docket No. RM16-6-000.\35\
---------------------------------------------------------------------------
\35\ Trade Associations Comments at 13-14. In Docket No. RM16-6-
000, the Commission issued a Notice of Inquiry seeking comment on
the need for reforms to its rules and regulations regarding the
provision and compensation of primary frequency response.
---------------------------------------------------------------------------
20. Trade Associations also suggest that the Commission explore how
changes made to the pro forma SGIA often influence state regulations.
Trade Associations note that distribution level interconnections are
broadly supported by industry standards and company interconnection
rules; and alignment to pro forma SGIA may be inappropriate for some
state regulations.\36\
---------------------------------------------------------------------------
\36\ Trade Associations Comments at 14.
---------------------------------------------------------------------------
3. Commission Determination
21. As discussed above, we find the revisions to the pro forma SGIA
adopted herein are necessary to remedy treatment that is unjust,
unreasonable, and unduly discriminatory and preferential because there
is no technical or economic basis to require small and large generating
facilities to follow different requirements in regards to voltage and
frequency ride through. Our revisions will place similar requirements
on large generating facilities and small generating facilities for ride
through capabilities. As discussed above, the NOPR proposal received
widespread support from commenters. Further, the absence of ride
through requirements for small generating facilities may have adverse
impacts on the reliability of the electric grid. We find that the lack
of ride through requirements for small generating facilities is unduly
discriminatory. This is due to the increased presence and impact of
small generating facilities, including distributed energy resources, on
the electric system, that could create reliability issues if they do
not have the capability to ride through voltage or frequency
disturbances. Further, improvements in technology, such as smart
inverters, make it economically feasible for small generating
facilities to ride through voltage and frequency disturbances. We
acknowledge that some areas have a greater penetration of distributed
resources than others at this time. Nevertheless, we believe that the
proposed reforms to the pro forma SGIA are appropriate on an industry-
wide basis now and that deferred action would not be appropriate.
22. We recognize the work of the IEEE 1547 Working Group, but we
determine that there is a pressing need to establish ride through
capability requirements at this time because we expect a continuing
increase in penetration of small generating facilities. The revisions
to the pro forma SGIA that we now approve will require the small
[[Page 50294]]
generating facility to implement ride through settings based on a
technical standard established by the transmission provider.
23. While Trade Associations point out that IEEE is revising IEEE
Standard 1547, the standard does not currently require ride through
capability. We are acting now to ensure that all affected
jurisdictional small generating facilities will have the ride through
capability, as allowed by IEEE Standard 1547a.\37\
---------------------------------------------------------------------------
\37\ As we also explained in the NOPR, the Commission's proposal
was not intended to impede the ongoing efforts of the IEEE 1547
Working Group, and we reiterate that point here. NOPR, 154 FERC ]
61,222 at P 8 n.19.
---------------------------------------------------------------------------
24. We are persuaded by the ISO/RTO Council's recommendation to add
the ``as tested'' language to section 1.5.7 of the pro forma SGIA to
harmonize the requirements between the pro forma SGIA and the pro forma
LGIA. Pursuant to this ``as tested'' language, the interconnection
customer must provide the successfully completed test results to the
transmission provider in a similar manner as in section 24.4 of the pro
forma LGIA. We believe that the addition of ``as tested'' language does
not create an extra burden on either party to an interconnection
agreement because the pro forma SGIA already includes testing
requirements in section 2.1.\38\ The ``as tested'' language assures the
transmission provider that the required ride through capability can
actually be performed by the small generating facility.
---------------------------------------------------------------------------
\38\ Pro forma SGIA, Section 2.1 ``Equipment Test and
Inspection.''
---------------------------------------------------------------------------
25. We hereby adopt new section 1.5.7 of the pro forma SGIA showing
the changes made to the Commission's proposal in the NOPR as follows:
1.5.7 The Interconnection Customer shall ensure ``frequency ride
through'' capability and ``voltage ride through'' capability of its
Small Generating Facility. The Interconnection Customer shall enable
these capabilities such that its Small Generating Facility shall not
disconnect automatically or instantaneously from the system or
equipment of the Transmission Provider and any Affected Systems for
a defined under-frequency or over-frequency condition, or an under-
voltage or over-voltage condition, as tested pursuant to section 2.1
of this agreement. The defined conditions shall be in accordance
with Good Utility Practice and consistent with any standards and
guidelines that are applied to other generating facilities in the
Balancing Authority Area on a comparable basis. . . .
26. We recognize the Trade Associations' concern about potential
tension between ride through requirements and anti-islanding
protection. Ensuring the safety of utility lineworkers is critically
important, and an issue the Commission takes seriously. Based on our
consideration of the record, we believe that the ride through
requirements adopted herein are technically and safely achievable. In
particular, we note that this Final Rule provides significant
flexibility for transmission providers to account for potential safety
and islanding concerns. For example, the transmission provider can
determine specific ride through settings needed to address those
concerns so long as those settings are consistent with Good Utility
Practice and any standards and guidelines applied to other generating
facilities on a comparable basis.
27. Furthermore, we note that islanding and personnel safety are
not new issues resulting from this Final Rule; to the contrary, they
will continue to be important concerns regardless of the reforms
adopted in this Final Rule. Accordingly, we emphasize the importance of
implementing ride through requirements through careful coordination
between the interconnection customer and the transmission provider, as
well as the utilization of appropriate safety procedures for utility
personnel, particularly effective and thorough communication for
lineworkers in the field, when performing remedial actions following a
system disturbance. We support the continued efforts by industry to
explore innovative ways to detect island conditions in order to
mitigate the risk of unintentional islands.
28. In light of our goal to prevent undue discrimination, we seek
to provide guidelines that will be applied to generating facilities on
a comparable basis, while allowing for justified differences on a case
by case basis. For example, if a transmission provider believes a
particular facility has a higher risk of unintentional islanding due to
specific conditions on that facility, the revisions to the pro forma
SGIA will permit the transmission provider to coordinate with the small
generating facility to set ride through settings appropriate for those
conditions, in accordance with Good Utility Practice and the
appropriate technical standards. For facilities with a lower risk of
forming an unintentional island, the transmission provider can
implement a longer ride through requirement, in accordance with Good
Utility Practice and the appropriate technical standards. We believe
that the flexibility provided by section 1.5.7 allows for appropriate
ride through requirements while recognizing the need to address any
safety concerns.
B. Referencing Specific Technical Standards
1. NOPR Proposal
29. In the NOPR, the Commission proposed to avoid prescriptive
frequency and voltage ride through requirements to allow for the
development of appropriate system- specific standards, noting that the
standards can be based on work developed by recognized standards
settings bodies, such as IEEE.
2. Comments
30. Commenters request that the proposed rule contain explicit
references to standards such as the Reliability Standards and IEEE and
UL standards.\39\ The ISO/RTO Council states that Reliability Standards
already provide requirements for coordination of automatic under-
frequency generator tripping with automatic under-frequency load
shedding programs that should be incorporated in the new ride through
requirements. The ISO/RTO Council suggests that the pro forma SGIA
explicitly reference Reliability Standard PRC-024 (Generator Frequency
and Voltage Protective Relay Settings) and applicable regional
Reliability Standards as part of the definition of ``Good Utility
Practice'' and for the coordination of automatic generator tripping
with automatic load shedding.\40\ The ISO/RTO Council also recommends
that the pro forma SGIA refer to the Reliability Standards and regional
Reliability Standards for coordination of automatic generator tripping
with automatic load shedding, and as appropriate, permit individual
transmission providers to also reference their automatic load-shed
program.
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\39\ ISO/RTO Council Comments at 7.
\40\ Id. at 6-7.
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31. Commenters assert that specifying certain technical standards
would be beneficial for consistent enforceability; specifically, some
commenters suggest that the pro forma SGIA reference IEEE and UL 1741
standards to describe ``Good Utility Practice.'' \41\ EPRI and IEEE
comment that failure to harmonize ride through requirements with the
proposed draft IEEE 1547 requirements may introduce confusion and
ultimately delay testing and compliance, exposing the electric system
to an increased reliability risk.\42\ PNM recognizes that there are
challenges to developing specific settings applicable to all small
generating facilities.\43\ However, PNM states that the Commission
should still
[[Page 50295]]
consider documenting some ride through expectation similar to those
outlined in the LGIA requirements. PNM requests that the pro forma SGIA
revisions consider a minimum ride through duration based on fault
clearing times and a minimum voltage. PNM also requests that the
Commission specify the location where the frequency and voltage
measurements are taken to comply with the requirements, such as the
point of interconnection.
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\41\ PNM Comments at 3; EPRI Comments at 13; IEEE Comments at 2.
\42\ EPRI Comments at 13; IEEE Comments at 2.
\43\ PNM Comments at 2.
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32. SoCal Edison observes that the California Public Utilities
Commission (CPUC) has established, through its retail Rule 21 tariff,
smart inverter requirements for small generators interconnecting to the
distribution systems of California's investor owned utilities, and low/
high voltage ride through and low/high frequency ride through are part
of the new required capabilities for small generators.\44\ SoCal Edison
explains that the CPUC ordered all investor owned utilities ``to seek
approval as may be needed for conforming changes to harmonize their
federal wholesale Tariffs interconnection specifications with the
revisions to Electric Tariff Rule 21.'' \45\
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\44\ SoCal Edison Comments at 3.
\45\ Id.
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3. Commission Determination
33. We are not persuaded by commenters' arguments for the need to
reference specific technical standards and decline to incorporate by
reference any specific standard into the pro forma SGIA or to specify
ride through duration and voltage and frequency levels. We therefore
decline to modify the NOPR proposal in this regard.
34. To accommodate the differences in voltage and frequency ride
through capabilities inherent in the different generation technologies,
we believe that requiring basic performance expectations without
explicitly specifying the duration or voltage and frequency levels
allows the flexibility to apply appropriate ride through settings with
coordination and approval of the transmission operator. As EPRI and
IEEE note, the ride through requirement framework in the draft IEEE
Standard 1547 is being structured along ``performance categories'' that
take into account the technological differences of various types of
small generating facilities. Once finalized, IEEE Standard 1547 may be
used as a technical guide to meet the requirements adopted herein.
Until revisions to IEEE Standard 1547 are finalized, however,
transmission providers and affected interconnection customers must
coordinate appropriate alternative frequency and voltage ride through
settings.
35. Furthermore, as a pragmatic matter, by setting minimum ride
through capability requirements that are not tied to a specific
standard, the requirements in section 1.5.7 of the pro forma SGIA would
remain applicable following any updates from IEEE Standard 1547 or
other applicable standards, without having to modify the pro forma SGIA
each time any such standard is updated.
36. In response to PNM's clarification request, we clarify that the
point of interconnection is the appropriate place to measure frequency
and voltage to comply with the ride through requirements.
C. Regional Differences
1. NOPR Proposal
37. The Commission proposed to permit RTOs and ISOs to seek
``independent entity variations'' from the proposed revisions to the
pro forma SGIA.
2. Comments
38. Multiple commenters support the Commission's proposal to permit
RTOs and ISOs to seek ``independent entity variations'' from the
proposed revisions to the pro forma SGIA.\46\
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\46\ Trade Associations Comments at 12-13; SoCal Edison Comments
at 4; ISO/RTO Council Comments at 6.
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39. Trade Associations request that the Commission also affirm the
ability of transmission providers that are not members of RTOs or ISOs
to seek variations from the pro forma SGIA to ensure consistency with
regional reliability requirements. Trade Associations explain that
differences in resource penetration and configuration (such as state
renewable portfolio standards or wind generation in remote locations)
have led to regional reliability requirements. Trade Associations note
that the Commission recognized in Order No. 2003 that such regional
reliability requirements might justify variations to pro forma
interconnection agreements and procedures.\47\ SoCal Edison believes
that, to the extent that some regions may need additional time to
implement the proposed ride through requirements on small generating
facilities, the Commission should grant such time.\48\
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\47\ Trade Associations Comments at 12-13.
\48\ SoCal Edison Comments at 4.
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3. Commission Determination
40. We adopt the NOPR proposal and permit ISOs and RTOs to seek
``independent entity variations'' from revisions to the pro forma
SGIA.\49\ Also, as proposed in the NOPR, if a transmission provider
seeks a deviation from section 1.5.7 of the pro forma SGIA, it must
demonstrate that the deviation is consistent with or superior to the
principles set forth in this Final Rule.
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\49\ See Order No. 792, 145 FERC ] 61,159 at P 274 (citing Order
No. 2003, FERC Stats. & Regs. ] 31,146 at PP 822-827).
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41. In addition, we clarify that we will also consider requests for
``regional reliability variations,'' provided that such requests are
supported by references to regional Reliability Standards, explain why
these regional Reliability Standards support the requested variation,
and include the text of the referenced Reliability Standards.\50\ While
some regions currently have greater penetration of small generation
facilities than others, we are acting now to set a national minimum
ride through capability before future increases in deployment of small
generation facilities.
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\50\ See id. P 273 (citing Order No. 2006, FERC Stats. & Regs. ]
31,180 at P 546).
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IV. Compliance and Implementation
42. Section 35.28(f)(1) of the Commission's regulations requires
every public utility with a non-discriminatory open access transmission
tariff OATT on file to also have an SGIA on file with the
Commission.\51\
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\51\ 18 CFR 35.28(f)(1).
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43. We reiterate that the requirements of this Final Rule apply to
all newly interconnecting small generating facilities that execute or
request the unexecuted filing of an SGIA on or after the effective date
of this Final Rule as well as existing interconnection customers that,
pursuant to a new interconnection request, execute or request the
unexecuted filing of a new or modified SGIA on or after the effective
date.
44. We require each public utility transmission provider that has
an SGIA within its OATT to submit a compliance filing within 65 days
following publication in the Federal Register.\52\ The compliance
filing must demonstrate that it meets the requirements set forth in
this proposal.
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\52\ For purposes of this Final Rule, a public utility is a
utility that owns, controls, or operates facilities used for
transmitting electric energy in interstate commerce, as defined by
the FPA. See 16 U.S.C. 824(e). A non-public utility that seeks
voluntary compliance with the reciprocity condition of an OATT may
satisfy that condition by filing an OATT, which includes an SGIA.
---------------------------------------------------------------------------
45. The Commission recently issued Order No. 827, a final rule in
Docket No. RM16-1-000, directing transmission providers to submit SGIA
revisions
[[Page 50296]]
related to reactive power requirements to the Commission.\53\ Those
compliance filings are due to the Commission on September 21, 2016. To
facilitate administrative efficiency, we will require the compliance
filings for this Final Rule and Order No. 827 to be filed in one
combined filing. Once this Final Rule is published in the Federal
Register, the Commission will provide a short extension to the
compliance dates in both proceedings such that the compliance dates are
the same.
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\53\ Reactive Power Requirements for Non-Synchronous Generation,
Order No. 827, 81 FR 40,793 (Jun. 23, 2016), 155 FERC ] 61,277
(2016).
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46. As discussed above, we are not requiring changes to
interconnection agreements that were executed prior to the effective
date of this Final Rule. Instead, the requirements of this Final Rule
apply to newly interconnecting small generating facilities that execute
or request the unexecuted filing of an interconnection agreement on or
after the effective date. The requirements of this Final Rule also
apply to existing small generating facilities that, pursuant to a new
interconnection request, require new or modified interconnection
agreements that are executed or requested to be filed unexecuted on or
after the effective date.
47. Some public utility transmission providers may have provisions
in their existing SGIAs or other document(s) subject to the
Commission's jurisdiction that the Commission has deemed to be
consistent with or superior to the pro forma SGIA or are permissible
under the independent entity variation standard or regional reliability
standard.\54\ Where these provisions would be modified by this Final
Rule, public utility transmission providers must either comply with
this Final Rule or demonstrate that these previously-approved
variations continue to be consistent with or superior to the pro forma
SGIA as modified by this Final Rule or continue to be permissible under
the independent entity variation standard or regional reliability
standard.\55\
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\54\ See Order No. 792, 145 FERC ] 61,159 at P 270.
\55\ See 18 CFR 35.28(f)(1)(i).
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48. We find that transmission providers that are not public
utilities must adopt the requirements of this Final Rule as a condition
of maintaining the status of their safe harbor tariff or otherwise
satisfying the reciprocity requirement of Order No. 888.\56\
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\56\ Promoting Wholesale Competition Through Open Access Non-
Discriminatory Transmission Services by Public Utilities; Recovery
of Stranded Costs by Public Utilities and Transmitting Utilities,
Order No. 888, FERC Stats. & Regs. ] 31,036, at 31,760-63 (1996),
order on reh'g, Order No. 888-A, FERC Stats. & Regs. ] 31,048, order
on reh'g, Order No. 888-B, 81 FERC ] 61,248 (1997), order on reh'g,
Order No. 888-C, 82 FERC ] 61,046 (1998), aff'd in relevant part sub
nom. Transmission Access Policy Study Group v. FERC, 225 F.3d 667
(D.C. Cir. 2000), aff'd sub nom. New York v. FERC, 535 U.S. 1
(2002).
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V. Information Collection Statement
49. The following collection of information contained in this Final
Rule is subject to review by the Office of Management and Budget (OMB)
regulations under section 3507(d) of the Paperwork Reduction Act of
1995.\57\ OMB's regulations require approval of certain information
collection requirements imposed by agency rules.\58\ Upon approval of a
collection of information, OMB will assign an OMB control number and
expiration date. Respondents subject to the filing requirements of this
Final Rule will not be penalized for failing to respond to this
collection of information unless the collection of information displays
a valid OMB control number.
---------------------------------------------------------------------------
\57\ 44 U.S.C. 3507(d).
\58\ 5 CFR 1320.11.
---------------------------------------------------------------------------
50. The reforms adopted in this Final Rule revise the Commission's
pro forma SGIA in accordance with section 35.28(f)(1) of the
Commission's regulations.\59\ This Final Rule applies to all newly
interconnecting small generating facilities that execute or request the
unexecuted filing of an SGIA on or after the effective date of this
Final Rule as well as existing interconnection customers that, pursuant
to a new interconnection request, execute or request the unexecuted
filing of a new or modified SGIA on or after the effective date, to
ensure frequency ride through capability and voltage ride through
capability in accordance with good utility practice and consistent with
any standards and guidelines that are applied to other generating
facilities in the balancing authority area on a comparable basis. The
reforms adopted in this Final Rule would require filings of SGIAs with
the Commission. The Commission anticipates the revisions required by
this Final Rule, once implemented, will not significantly change
existing burdens on an ongoing basis. With regard to those public
utility transmission providers that believe that they already comply
with the revisions adopted in this Final Rule, they can demonstrate
their compliance in the filing required 65 days after the effective
date of this Final Rule. The Commission will submit the proposed
reporting requirements to OMB for its review and approval under section
3507(d) of the Paperwork Reduction Act.\60\
---------------------------------------------------------------------------
\59\ 18 CFR 35.28(f)(1).
\60\ 44 U.S.C. 3507(d).
---------------------------------------------------------------------------
51. While the Commission expects the revisions adopted in this
Final Rule will provide significant benefits, the Commission
understands that implementation would entail some costs. The Commission
solicited comments on the accuracy of provided burden and cost
estimates and any suggested methods for minimizing the respondents'
burdens. The Commission did not receive any comments concerning its
burden or cost estimates. As explained above, we will require the
compliance filings for this Final Rule and Order No. 827 to be filed in
one combined filing. We expect that this will reduce the burden on
public utility transmission providers at the time the Commission gives
notice of the extension of the compliance date and requirement to
combine compliance filings.
Burden Estimate: The Commission believes that the burden estimates
below are representative of the average burden on respondents. The
estimated burden and cost for the requirements adopted in this Final
Rule follow.\61\
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\61\ Commission staff estimates that industry is similarly
situated in terms of hourly cost (wages plus benefits). Based on the
Commission 2016 average cost (wages plus benefits), $74.50/hour is
used.
[[Page 50297]]
FERC 516A Revisions in RM16-8
----------------------------------------------------------------------------------------------------------------
Annual number Total annual
Number of of responses Total number Average burden burden hrs. &
respondents per of responses (hrs.) & cost total annual
\62\ respondent ($) per response cost ($)
(1) (2) (1)*(2)=(3) (4)............. (3)*(4)=(5)
----------------------------------------------------------------------------------------------------------------
Conforming SGIA changes to 118 1 118 7.5 hrs.; 885 hrs.;
incorporate revisions. $558.75. $65,932.50
----------------------------------------------------------------------------------
Total.................... .............. .............. 118 7.5 hrs.; 885 hrs.;
$558.75. $65,932.50
----------------------------------------------------------------------------------------------------------------
Cost to Comply: The Commission has projected the additional cost of
compliance as follows: \63\
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\62\ Number of Applicable Registered Entities.
\63\ The costs for Year 1 would consist of filing proposed
changes to the pro forma SGIA with the Commission within 65 days of
the effective date of the final revision plus initial
implementation. The Commission does not expect any ongoing costs
beyond the initial compliance in Year 1.
Year 1: $65,932.50 for all affected entities ($558.75/utility)
Year 2 and subsequent years: $0
After implementation in Year 1, the reforms proposed in this Final Rule
would be complete.
Title: FERC-516A, Standardization of Small Generator
Interconnection Agreements and Procedures.
Action: Revision of currently approved collection of information.
OMB Control No.: 1902-0203.
Respondents for This Rulemaking: Businesses or other for profit
and/or not-for-profit institutions.
Frequency of Information: One-time during Year 1.
Necessity of Information: The Commission adopts changes to the pro
forma SGIA in order to more efficiently and cost-effectively
interconnect generating facilities no larger than 20 MW (small
generating facilities) to Commission-jurisdictional transmission
systems. The purpose of this Final Rule is to revise the pro forma SGIA
so small generating facilities can be reliably and efficiently
integrated into the electric grid and to ensure that Commission-
jurisdictional services are provided at rates, terms and conditions
that are just and reasonable and not unduly discriminatory or
preferential. This Final Rule seeks to achieve this goal by amending
the pro forma SGIA to include new section 1.5.7.
Internal Review: The Commission has reviewed the changes and has
determined that the changes are necessary. These requirements conform
to the Commission's need for efficient information collection,
communication, and management within the energy industry. The
Commission has assured itself, by means of internal review, that there
is specific, objective support for the burden estimates associated with
the information collection requirements.
52. Interested persons may obtain information on the reporting
requirements by contacting the following: Federal Energy Regulatory
Commission, 888 First Street NE., Washington, DC 20426 [Attention:
Ellen Brown, Office of the Executive Director], email:
DataClearance@ferc.gov, Phone: (202) 502-8663, fax: (202) 273-0873.
53. Comments on the collection of information and the associated
burden estimate in the Final Rule should be sent to the Commission in
this docket and may also be sent to the Office of Information and
Regulatory Affairs, Office of Management and Budget, 725 17th Street
NW., Washington, DC 20503 [Attention: Desk Officer for the Federal
Energy Regulatory Commission], at the following email address:
oira_submission@omb.eop.gov. Please reference OMB Control No. 1902-0203
and the docket number of this rulemaking in your submission.
VI. Regulatory Flexibility Act
54. The Regulatory Flexibility Act of 1980 (RFA) \64\ generally
requires a description and analysis of rules that will have significant
economic impact on a substantial number of small entities. The RFA does
not mandate any particular outcome in a rulemaking. It only requires
consideration of alternatives that are less burdensome to small
entities and an agency explanation of why alternatives were rejected.
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\64\ 5 U.S.C. 601-612.
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55. The Small Business Administration (SBA) revised its size
standards (effective January 22, 2014) for electric utilities from a
standard based on megawatt hours to a standard based on the number of
employees, including affiliates. Under SBA's standards, some
transmission owners will fall under the following category and
associated size threshold: Electric bulk power transmission and
control, at 500 employees.\65\
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\65\ 13 CFR 121.201, Sector 22 (Utilities), NAICS code 221121
(Electric Bulk Power Transmission and Control).
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56. The Commission estimates that the total number of public
utility transmission providers that would have to modify the SGIAs
within their currently effective OATTs is 118. Of these, the Commission
estimates that approximately 43% are small entities. The Commission
estimates the average cost to each of these entities will be minimal,
requiring on average 7.5 hours or $558.75. According to SBA guidance,
the determination of significance of impact ``should be seen as
relative to the size of the business, the size of the competitor's
business, and the impact the regulation has on larger competitors.''
\66\ The Commission does not consider the estimated burden to be a
significant economic impact. As a result, the Commission certifies that
the reforms adopted in this Final Rule would not have a significant
economic impact on a substantial number of small entities.
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\66\ U.S. Small Business Administration, A Guide for Government
Agencies How to Comply with the Regulatory Flexibility Act, at 18
(May 2012), https://www.sba.gov/sites/default/files/advocacy/rfaguide_0512_0.pdf.
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VII. Environmental Analysis
57. 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.\67\ As we
stated in the NOPR, the Commission concludes that neither an
Environmental Assessment nor an Environmental Impact Statement is
required for the revisions adopted in this Final Rule under section
380.4(a)(15) of the Commission's regulations, which provides a
categorical exemption for approval of actions under sections 205 and
206 of the FPA relating to the filing of schedules containing all rates
and
[[Page 50298]]
charges for the transmission or sale of electric energy subject to the
Commission's jurisdiction, plus the classification, practices,
contracts and regulations that affect rates, charges, classifications,
and services.\68\ The revisions adopted in this Final Rule would update
and clarify the application of the Commission's standard
interconnection requirements to small generating facilities.
---------------------------------------------------------------------------
\67\ Regulations Implementing National Environmental Policy Act,
Order No. 486, FERC Stats. & Regs. ] 30,783 (1987).
\68\ 18 CFR 380.4(a)(15).
---------------------------------------------------------------------------
58. Therefore, this Final Rule falls within the categorical
exemptions provided in the Commission's regulations, and as a result
neither an Environmental Impact Statement nor an Environmental
Assessment is required.
VIII. Document Availability
59. 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 5:00 p.m. Eastern time) at 888 First Street NE., Room 2A,
Washington, DC 20426.
60. From the Commission's Home Page on the Internet, this
information is available on 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 of this document, excluding the last three digits, in
the docket number field.
61. User assistance is available for eLibrary and the Commission's
Web site during normal business hours from the Commission's Online
Support at (202) 502-6652 (toll free at 1-866-208-3676) or email at
ferconlinesupport@ferc.gov, or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at
public.referenceroom@ferc.gov.
IX. Effective Date and Congressional Notification
62. The Final Rule is effective October 5, 2016. However, as noted
above, the requirements of this Final Rule will apply only to all newly
interconnecting small generating facilities that execute or request the
unexecuted filing of an SGIA on or after the effective date of this
Final Rule as well as existing interconnection customers that, pursuant
to a new interconnection request, execute or request the unexecuted
filing of a new or modified SGIA on or after the effective date. The
Commission has determined, with the concurrence of the Administrator of
the Office of Information and Regulatory Affairs of OMB, that this
Final Rule is not a ``major rule'' as defined in section 351 of the
Small Business Regulatory Enforcement Fairness Act of 1996. This Final
Rule is being submitted to the Senate, House, Government Accountability
Office, and Small Business Administration.
By the Commission.
Issued: July 21, 2016.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
Note: The following Attachment will not appear in the Code of
Federal Regulations.
Appendix A--List of Substantive Commenters (RM16-8-000)
Bonneville Bonneville Power Administration
Trade Associations Edison Electric Institute/American Public Power
Association/Large Public Power Council/National Rural Electric
Cooperative Association
EPRI Electric Power Research Institute
Idaho Power Idaho Power Company
IEEE Institute of Electrical and Electronics Engineers
ISO/RTO Council ISO/RTO Council
NERC North American Electric Reliability Corporation
PG&E Pacific Gas and Electric Company
Peak Reliability Peak Reliability
PNM Public Service Company of New Mexico
SoCal Edison Southern California Edison Company
In addition, Entergy Services, Inc. submitted non-substantive
comments.
[FR Doc. 2016-17843 Filed 7-29-16; 8:45 am]
BILLING CODE 6717-01-P
