Electric Reliability Organization Proposal To Retire Requirements in Reliability Standards Under the NERC Standards Efficiency Review, 65207-65214 [2020-20972]
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Federal Register / Vol. 85, No. 200 / Thursday, October 15, 2020 / Rules and Regulations
[FR Doc. 2020–22732 Filed 10–14–20; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
18 CFR Part 40
[Docket Nos. RM19–16–000 and RM19–17–
000; Order No. 873]
Electric Reliability Organization
Proposal To Retire Requirements in
Reliability Standards Under the NERC
Standards Efficiency Review
Federal Energy Regulatory
Commission, Department of Energy.
ACTION: Final rule.
AGENCY:
The Federal Energy
Regulatory Commission (Commission)
approves the retirement of 18 Reliability
Standard requirements identified by the
North American Electric Reliability
Corporation (NERC), the Commissioncertified Electric Reliability
Organization. The Commission also
remands proposed Reliability Standard
FAC–008–4 for further consideration by
NERC. The Commission takes no action
at this time on the proposed retirement
of 56 MOD A Reliability Standard
requirements.
DATES: This rule is effective December
14, 2020.
FOR FURTHER INFORMATION CONTACT:
Michael Gandolfo (Technical
Information), Office of Electric
Reliability, Division of Reliability
Standards and Security, Federal
Energy Regulatory Commission, 888
First Street NE, Washington, DC
20426, Telephone: (202) 502–6817
Mark Bennett (Legal Information), Office
of the General Counsel, Federal
Energy Regulatory Commission, 888
First Street NE, Washington, DC
20426, Telephone: (202) 502–8524
SUPPLEMENTARY INFORMATION:
1. Pursuant to section 215(d)(2) of the
Federal Power Act (FPA),1 the
Commission approves 18 of the 76
Reliability Standard requirements
requested for retirement by the North
American Electric Reliability
Corporation (NERC).2 For the reasons
discussed below, we determine that the
retirement of the 18 Reliability Standard
requirements through the retirement of
four Reliability Standards and the
modification of five Reliability
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SUMMARY:
1 16
U.S.C. 824o(d)(2).
withdrew the originally requested
retirement of Reliability Standard VAR–001–6,
Requirement R2 on May 14, 2020.
2 NERC
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Standards is just, reasonable, not
unduly discriminatory or preferential,
and in the public interest.3 The
Commission also approves the
associated violation risk factors,
violation severity levels,
implementation plan, and effective
dates proposed by NERC.
2. As set forth in the petitions, we
conclude that the 18 Reliability
Standard requirements: (1) Provide little
or no reliability benefit; (2) are
administrative in nature or relate
expressly to commercial or business
practices; or (3) are redundant with
other Reliability Standards. These
justifications are consistent with the
Commission-approved rationale for
retiring Reliability Standard
requirements articulated in prior
proceedings.4
3. The approved retirements will
enhance the efficiency of the Reliability
Standards program by reducing
duplicative or otherwise unnecessary
regulatory burdens.
4. In the Notice of Proposed
Rulemaking (NOPR), the Commission
also proposed to approve the retirement
of 56 requirements constituting the socalled MOD A Reliability Standards.5
The NOPR indicated that, if approved,
the Commission intends to coordinate
the effective dates for the retirement of
the MOD A Reliability Standards with
successor North American Energy
Standards Board (NAESB) business
3 The four Reliability Standards being eliminated
in their entirety are Reliability Standards FAC–013–
2 (Assessment of Transfer Capability for the Nearterm Transmission Planning Horizon), INT–004–3.1
(Dynamic Transfers), INT–010–2.1 (Interchange
Initiation and Modification for Reliability), MOD–
020–0 (Providing Interruptible Demands and Direct
Control Load Management Data to System
Operations and Reliability Coordinators). The five
modified Reliability Standards approved herein are
Reliability Standards INT–006–5 (Evaluation of
Interchange Transactions), INT–009–3
(Implementation of Interchange) and PRC–004–6
(Protection System Misoperation Identification and
Correction), IRO–002–7 (Reliability Coordination—
Monitoring and Analysis), TOP–001–5
(Transmission Operations).
4 North American Electric Reliability Corp., 138
FERC ¶ 61,193, at P 81 (March 2012 Order), order
on reh’g and clarification, 139 FERC ¶ 61,168
(2012); Electric Reliability Organization Proposal to
Retire Requirements in Reliability Standards, Order
No. 788, 145 FERC ¶ 61,147, at P 1 (2013) (stating
that the proposed retirements ‘‘meet the
benchmarks set forth in the Commission’s March
15, 2012 Order’’).
5 Electric Reliability Organization Proposal to
Retire Requirements in Reliability Standards Under
the NERC Standards Efficiency Review, 170 FERC
¶ 61,032 (2020) (NOPR). The MOD A Reliability
Standards proposed for retirement are MOD–001–
1a (Available Transmission System Capability),
MOD–004–1 (Capacity Benefit Margin), MOD–008–
1 (Transmission Reliability Margin Calculation
Methodology), MOD–028–2 (Area Interchange
Methodology), MOD–029–2a (Rated System Path
Methodology), and MOD–030–3 (Flowgate
Methodology).
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practice standards.6 On March 30, 2020,
NAESB submitted Version 003.3 of the
Standards for Business Practices and
Communication Protocols for Public
Utilities that, inter alia, include
Modeling business practices. On July
16, 2020, the Commission issued a
NOPR in Docket Nos. RM05–5–029 and
RM05–5–030 proposing to amend its
regulations to incorporate by reference,
with certain enumerated exceptions,
NAESB’s Version 003.3 Business
Practices.7 Comments on the NAESB
NOPR are due on November 3, 2020.8 In
light of these developments, this final
rule does not address the retirement of
the MOD A Reliability Standards. The
Commission will determine the
appropriate action regarding the
proposed retirement of the MOD A
Reliability Standards at a later time.
5. While the Commission approves
the 18 retirements, pursuant to FPA
section 215(d)(4), we remand proposed
Reliability Standard FAC–008–4.9 As
discussed below, we are satisfied with
NERC’s justification for retiring
Reliability Standard FAC–008–3,
Requirement R7. However, for the
reasons discussed below, we are not
persuaded that it is appropriate to retire
Reliability Standard FAC–008–3,
Requirement R8. Because the
Commission, pursuant to FPA section
215(d)(4), must remand to NERC for
further consideration a proposed
modification to a Reliability Standard
that the Commission disapproves in
whole or in part, we remand proposed
Reliability Standard FAC–008–4 to
address our concerns with the
retirement of Requirement R8.
I. Background
A. Section 215 of the FPA
6. Section 215 of the FPA requires the
Commission-certified Electric
Reliability Organization (ERO) to
develop mandatory and enforceable
Reliability Standards, subject to
Commission review and approval. Once
approved, the Reliability Standards may
be enforced in the United States by the
ERO subject to Commission oversight,
or by the Commission independently.10
Pursuant to the requirements of FPA
section 215, the Commission established
6 NOPR,
170 FERC ¶ 61,032, at P 21, n.35.
for Business Practices and
Communication Protocols for Public Utilities,
Notice of Proposed Rulemaking, Order No. 676, 85
FR 10571, 172 FERC ¶ 61,047 (2020).
8 Standards for Business Practices and
Communication Protocols for Public Utilities, 85 FR
55201 (September 4, 2020).
9 16 U.S.C. 824o(d)(4).
10 16 U.S.C. 824o(e)(3).
7 Standards
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a process to select and certify an ERO 11
and, subsequently, certified NERC as the
ERO.12
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B. Prior Retirements of Reliability
Standard Requirements
7. In the March 2012 Order, the
Commission observed that NERC’s
compliance program could be made
more efficient by removing existing
requirements deemed unnecessary for
reliability.13 The Commission stated
that if NERC believes certain Reliability
Standards or requirements should be
revised or removed, ‘‘we invite NERC to
make specific proposals to the
Commission identifying the Standards
or requirements and setting forth in
detail the technical basis for its
belief.’’ 14 Further, the Commission
encouraged NERC ‘‘to propose
appropriate mechanisms to identify and
remove from the Commission-approved
Reliability Standards unnecessary or
redundant requirements.’’ 15
8. In response, in February 2013,
NERC proposed to retire 34
requirements within 19 Reliability
Standards based on the justification that
the requirements ‘‘are redundant or
otherwise unnecessary’’ and that
‘‘violations of these requirements . . .
pose a lesser risk to the reliability of the
Bulk-Power System.’’ 16 NERC
explained that the proposed retirements
were based upon three major criteria: (1)
Whether a proposed retirement would
create a reliability gap; (2) whether the
requirement in question is
administrative; involves data collection,
retention, documentation, periodic
updates or reporting; is a commercial or
business practice; or is redundant; and
(3) consideration of responses to seven
questions regarding the proposed
retirement, including whether the
requirement was part of a ‘‘find, fix and
track’’ filing, the requirement’s violation
risk factor level, and whether the
requirement is part of on-going
standards development project.17
9. On November 21, 2013, the
Commission approved the retirements
that NERC proposed, and determined
11 Rules Concerning Certification of the Electric
Reliability Organization; and Procedures for the
Establishment, Approval, and Enforcement of
Electric Reliability Standards, Order No. 672, 114
FERC ¶ 61,104, order on reh’g, Order No. 672–A,
114 FERC ¶ 61,328 (2006).
12 North American Electric Reliability Corp., 116
FERC ¶ 61,062, order on reh’g and compliance, 117
FERC ¶ 61,126 (2006), aff’d sub nom. Alcoa Inc. v.
FERC, 564 F.3d 1342 (DC Cir. 2009).
13 March 2012 Order, 138 FERC ¶ 61,193 at P 81.
14 Id.
15 Id.
16 NERC, Petition, Docket No. RM13–8–000, at 2
(filed Feb. 28, 2013).
17 Id. at 4.
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that the retirements ‘‘meet the
benchmarks’’ set forth in the March
2012 Order that ‘‘requirements proposed
for retirement either: (1) Provide little
protection for Bulk-Power System
reliability; or (2) are redundant with
other aspects of the Reliability
Standards.’’ 18
11. NERC contends that the SER
Project ‘‘was conducted in an open and
transparent manner, with broad
industry participation.’’ 24 NERC states
that it initiated the standards
development process to consider the
retirement recommendations generated
by the SER Project.
C. NERC Standards Efficiency Review
Project and Petitions
2. IRO, TOP and VAR Petition (Docket
No. RM19–16–000)
12. On June 7, 2019, in Docket No.
RM19–16–000, NERC submitted for
Commission approval new versions of
three Reliability Standards: IRO–002–7
(Reliability Coordination—Monitoring
and Analysis), TOP–001–5
(Transmission Operations), and VAR–
001–6 (Voltage and Reactive Control).25
NERC explains that approval of the new
versions would result in the retirement
of four requirements from the currentlyeffective versions of the Reliability
Standards.26 NERC proposes to retire
three of the existing requirements in
Reliability Standards IRO–002 and
TOP–001 that require the reliability
coordinator, transmission operator, and
balancing authority to have data
exchange capabilities with entities
having data needed to perform
operational planning analyses and to
develop operating plans for next-day
operations. NERC contends that these
requirements are redundant and not
necessary ‘‘because the performance
required by these requirements is
inherent to the performance of other
Reliability Standard requirements.’’ 27
13. In particular, NERC maintains that
the data exchange capability
requirement in Reliability Standard
IRO–002–5, Requirement R1 is covered
by Reliability Standard IRO–008–2,
Requirement R1, which obligates the
reliability coordinator to perform
operational planning analyses to assess
whether the planned operations for the
next-day will exceed System Operating
Limits and Interconnection Reliability
Operating Limits within its Wide Area.
NERC asserts that ‘‘to perform the
required operational planning analyses,
the Reliability Coordinator must have
the data it deems necessary from those
entities that possess it.’’ 28
1. NERC Standards Efficiency Review
Project
10. NERC states that the proposed
retirements are the product of its
Standards Efficiency Review (SER)
Project. NERC explains that the SER
Project began in 2017 ‘‘to achieve
[NERC’s] long-term strategic goal of
establishing risk-based controls to
minimize [Bulk-Power System]
reliability risk while also driving
operational efficiencies and
effectiveness.’’ 19 NERC states that in
Phase 1 of the SER Project, teams of
industry experts conducted a risk-based
analysis of non-CIP Reliability
Standards.20 The purpose of this review,
according to NERC, was ‘‘to identify
Reliability Standard requirements that
provide little or no benefit to reliability
and should be retired.’’ 21 NERC
maintains that, unlike the periodic
reviews 22 of Reliability Standards
performed by NERC pursuant to the
NERC Rules of Procedure, the SER
Project involved ‘‘exploring the
relationships between the different
Reliability Standards in a deeper way
than would be feasible during a targeted
periodic review . . . [and] allowed
NERC to identify requirements that are
not necessary for reliability or that are
redundant to other requirements.’’ 23
18 Electric Reliability Organization Proposal to
Retire Requirements in Reliability Standards, Order
No. 788, 145 FERC ¶ 61,147 (2013).
19 Docket No. RM19–16–000 Petition at 3; Docket
No. RM19–17–000 Petition at 4.
20 NERC states that Phase 2 of the SER Project will
‘‘consider recommendations for Reliability
Standard revisions that would further improve the
efficiency of the body of NERC Reliability
Standards, such as through consolidation of
Reliability Standard requirements . . . [and will]
consider recommendations for standards-based
improvements that would further reduce
inefficiencies and promote effectiveness.’’ Docket
No. RM19–16–000 Petition at 6–7; Docket No.
RM19–17–000 Petition at 7.
21 Docket No. RM19–16–000 Petition at 5; Docket
No. RM19–17–000 Petition at 6.
22 The NERC Rules of Procedure require a
periodic review of each Reliability Standard; and
they provide for a five-year cyclical review of
Reliability Standards approved by the American
National Standards Institute (ANSI) and 10-year
cyclical review for Reliability Standards not
approved by ANSI. See NERC Rules of Procedure,
Section 317 and Appendix 3A (Standards Process
Manual), section 13.0.
23 Docket No. RM19–16–000 Petition at 5; Docket
No. RM19–17–000 Petition at 6.
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24 Docket No. RM19–16–000 Petition at 5–6;
Docket No. RM19–17–000 Petition at 7.
25 On May 14, 2020, NERC withdrew its request
to retire Reliability Standard VAR–001–6,
Requirement R2.
26 The revised versions of the IRO and TOP
Reliability Standards are not attached to this final
rule. The complete text of the Reliability Standards
is available on the Commission’s eLibrary
document retrieval system in Docket No. RM19–16–
000 and is posted on the ERO’s website, https://
www.nerc.com.
27 Docket No. RM19–16–000 Petition at 7.
28 Id. at 14–15.
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14. Additionally, regarding data
exchange, NERC cites Reliability
Standard IRO–010–2 (Reliability
Coordinator Data Specification and
Collection) and its stated purpose of
preventing instability, uncontrolled
separation, or cascading outages ‘‘by
ensuring the Reliability Coordinator has
the data it needs to monitor and assess
the operation of its Reliability
Coordinator Area.’’ 29 NERC states that
under Reliability Standard IRO–010–2,
Requirements R1, R2 and R3, the
reliability coordinator must specify the
data necessary for it to perform its
operational planning analyses and
provide the specifications to the entities
from which it needs data who then must
comply with the data request using a
mutually agreeable format and security
protocols.
15. NERC states that the performance
of Reliability Standard IRO–010–2,
Requirements R1, R2 and R3 is
premised on the existence of data
exchange capabilities, ‘‘regardless of
whether a separate requirement
expressly requires the Reliability
Coordinator to have data exchange
capabilities in place.’’ 30 NERC therefore
asserts that Reliability Standard IRO–
002–5, Requirement R1 provides no
additional reliability benefit and ‘‘is
therefore unnecessary and redundant
and should be retired.’’ 31
16. NERC also proposes to retire
Reliability Standards TOP–001–4,
Requirements R19 and R22. NERC
explains that Requirements R19 and R22
of Reliability Standard TOP–001–4
require transmission operators and
balancing authorities respectively to
have data exchange capabilities with
entities from which they need data to
perform operational planning analyses
(transmission operators) and next-day
Operating Plans (balancing authorities).
NERC notes, however, that Reliability
Standard TOP–002–4, Requirement R1
requires a transmission operator to
perform an operational planning
analyses to determine whether next-day
operations within its area will exceed
System Operating Limits. NERC also
states that TOP–002–4, Requirement R4
requires each balancing authority to
have a next-day Operating Plan
addressing expected generation resource
commitment and dispatch, Interchange
scheduling and related matters. NERC
asserts that to satisfy these
requirements, ‘‘each Transmission
Operator and Balancing Authority must
29 Id.
at 15.
30 Id.
31 Id.
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have the data it deems necessary from
those entities that possess it.’’ 32
17. NERC also points to Reliability
Standard TOP–003–3 (Operational
Reliability Data) whose purpose is ‘‘to
ensure that the Transmission Operator
and Balancing Authority have data
needed to fulfill their operational and
planning responsibilities.’’ NERC
contends that the requirements in
Reliability Standard TOP–003–3 largely
mirror the requirements in Reliability
Standard IRO–010–2 discussed above,
and thus, as with Reliability Standard
IRO–010–2, transmission operators and
balancing authorities must have data
exchange capabilities with its reporting
entities to satisfy the requirements of
Reliability TOP–003–3. For these
reasons, NERC contends that Reliability
Standards TOP–001–4, Requirements
R19 and R22 are unnecessary and
redundant and should be retired.
18. NERC requests that the
Commission approve the
implementation plan, attached to
NERC’s petition as Exhibit B, and the
associated violation risk factors and
violation severity levels described in
Exhibit D. The implementation plan
provides that proposed Reliability
Standards IRO–002–7 and TOP–001–5
would become effective on the first day
of the first calendar quarter that is three
months after regulatory approval. The
currently effective versions of the
Reliability Standards would be retired
immediately prior to the effective date
of the revised Reliability Standards.
NERC explains that the requested
timeline accounts for the time entities
will need to update their systems and
related documentation.
3. FAC, INT, MOD and PRC Petition
(Docket No. RM19–17–000)
19. On June 7, 2019, in Docket No.
RM19–17–000, NERC submitted for
Commission approval the proposed
retirement of 10 currently-effective FAC,
INT, MOD and PRC Reliability
Standards in their entirety without
replacement.33 Additionally, NERC
proposed modifications to four
Reliability Standards reflecting the
32 Id.
at 16.
33 Reliability
Standards FAC–013–2 (Assessment
of Transfer Capability for the Near-term
Transmission Planning Horizon), INT–004–3.1
(Dynamic Transfers), INT–010–2.1 (Interchange
Initiation and Modification for Reliability), MOD–
001–1a (Available Transmission System Capability),
MOD–004–1 (Capacity Benefit Margin), MOD–008–
1 (Transmission Reliability Margin Calculation
Methodology), MOD–020–0 (Providing Interruptible
Demands and Direct Control Load Management
Data to System Operations and Reliability
Coordinators), MOD–028–2 (Area Interchange
Methodology), MOD–029–2a (Rated System Path
Methodology), and MOD–030–3 (Flowgate
Methodology).
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retirement of certain requirements from
the currently-effective versions: FAC–
008–4 (Facility Ratings), INT–006–5
(Evaluation of Interchange
Transactions), INT–009–3
(Implementation of Interchange) and
PRC–004–6 (Protection System
Misoperation Identification and
Correction).34 NERC asserts that its
proposals would not adversely impact
reliability, but rather they ‘‘would
benefit reliability by allowing entities to
focus their resources on those
Reliability Standard requirements that
promote the reliable operation and
planning of the BPS [Bulk-Power
System] and avoid unnecessary
regulatory burden.’’ 35
20. Regarding the full FAC, INT, MOD
and PRC Reliability Standards proposed
for retirement, NERC contends that they
are not necessary and that removing
them would not adversely affect
reliability. NERC states that retirement
of the ten full Reliability Standards is
justified because they are primarily
administrative in nature or largely
related to commercial or business
practices, and therefore no longer serve
a reliability purpose.36 For example,
NERC states that the transfer capability
assessment required under Reliability
Standard FAC–013–2 ‘‘serves only a
market function’’ and ‘‘is not an
indicator of [bulk electric system]
reliability.’’ 37 In supporting its
conclusion that Reliability Standard
INT–010–2.1 primarily relates to
commercial and business practices,
NERC notes that in 2013 the NERC
Independent Experts Review Panel
recommended retiring the previous
version of the Reliability Standard ‘‘due
to overlap with the NAESB Electronic
Tagging Functional Specification.’’ 38
21. Similarly, regarding the MOD
Reliability Standards, NERC states that
‘‘[Available Transfer Capability] and
[Available Flowgate Methodology], as
well as e-Tags, are commerciallyfocused elements facilitating
interchange and balancing of
interchange,’’ and that system operators
maintain reliability by monitoring Realtime flows based on System Operating
Limits and Interconnection Reliability
Operating Limits.39 In particular, NERC
34 The revised versions of the FAC, INT and PRC
Reliability Standards are not attached to this final
rule. The complete text of the Reliability Standards
is available on the Commission’s eLibrary
document retrieval system in Docket No. RM19–17–
000 and is posted on the ERO’s website, https://
www.nerc.com.
35 Docket No. RM19–17–000 Petition at 7.
36 Docket No. RM19–17–000 Petition at 13–24.
37 Id. at 13.
38 Id. at 16–19.
39 Id. at 21.
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explains that information on
Interruptible Demands and Direct
Control Load Management required
under Reliability Standard MOD–020–0
is not useful for transmission operators
and reliability coordinators, ‘‘who must
plan and operate the [Bulk-Power
System] within System Operating Limits
and Interconnection Reliability
Operating Limits under the TOP and
IRO Reliability Standards.’’ 40
22. Regarding NERC’s proposed
modified Reliability Standards, NERC
states that the data provision obligations
of currently effective Reliability
Standard FAC–008–3, Requirements R7
and R8 are redundant with Reliability
Standards MOD–032–1, IRO–010–2 and
TOP–003–3. NERC asserts that
Requirements R3.1, R4 and R5 of
currently-effective Reliability Standard
INT–006–4 ‘‘provide little, if any,
benefit or protection to the reliability
operation of the [Bulk-Power
System]’’ 41 and that the substance of
Requirements R4 and R5 in particular
relate to commercial or business
practices and are better addressed
through the balancing authority’s e-Tag
Authority Service.42 Also, NERC states
that Requirement R1 of currentlyeffective Reliability Standard INT–009–
2.1 is being revised to remove the
reference to Reliability Standard INT–
010, which is also proposed for
retirement, and Requirement R2 is
redundant with Reliability Standard
BAL–005–1, Requirement R7.43 Finally,
NERC states that it has determined that
rather than the ‘‘specific, recurring and
inflexible timeframe’’ set forth in
Requirement R4 of currently-effective
Reliability Standard PRC–004–5 for
identifying the cause of a protection
system misoperation, ‘‘it would be more
effective to have entities investigate the
causes of misoperations according to
their own internal control policies and
procedures.’’ 44
23. NERC requests that the
Commission approve the
implementation plan, attached to
NERC’s petition as Exhibit B, and the
associated violation risk factors and
violation severity levels, attached to
NERC’s petition as Exhibit D, which are
generally unchanged from the currently
effective versions. For the Reliability
Standards retired in their entirety,
NERC proposes an effective date that is
immediately upon regulatory approval
of the retirement. NERC also seeks to
retire the currently effective Reliability
40 Id.
at 23.
at 29.
42 Id. at 29–31.
43 Id. at 31–32.
44 Id. at 34.
41 Id.
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Standards FAC–008–3, INT–006–4,
INT–009–2.1, and PRC–004–5(i)
immediately prior to the effective date
of their new versions.
D. Notice of Proposed Rulemaking
24. On January 23, 2020, the
Commission issued a NOPR proposing
to approve the retirement of 74 of the 77
Reliability Standard requirements
requested by NERC. However, while
proposing to approve the majority of
Reliability Standard requirement
retirements NERC proposed, the
Commission expressed concern with
NERC’s justification for retirement of
Reliability Standard FAC–008–3,
Requirement R7 and R8 because those
requirements did not appear to be
entirely redundant of other existing
Reliability Standards. Accordingly, the
Commission sought more information
from NERC regarding how other existing
Reliability Standards render Reliability
Standard FAC–008–3, Requirements R7
and R8 redundant, and how retiring
those requirements would not create a
reliability gap.
25. In response to the NOPR, the
Commission received comments from
NERC, Trade Associations (i.e.,
American Public Power Association,
Edison Electric Institute, Large Public
Power Council, National Rural Electric
Cooperative Association, Transmission
Access Policy Study Group), Bonneville
Power Administration, Western Area
Power Administration, and Jonathan
Appelbaum. We address below the
issues raised in the NOPR and
comments.
II. Discussion
A. Approved Retirement of 18
Reliability Standard Requirements
26. Pursuant to section 215(d)(2) of
the FPA, the Commission approves
NERC’s request to retire 18 Reliability
Standard requirements as just,
reasonable, not unduly discriminatory
or preferential, and in the public
interest. NERC’s petitions provide an
adequate basis to conclude that the
requirements proposed for retirement:
(1) Provide little or no reliability benefit;
(2) are administrative in nature or relate
expressly to commercial or business
practices; or (3) are redundant with
other Reliability Standards. NERC’s
justifications for retiring the 18
requirements are consistent with the
retirement guidelines set forth by the
Commission in Order No. 788 and with
the determination that ‘‘requirements
proposed for retirement can be removed
from the Reliability Standards with little
effect on reliability and an increase in
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efficiency of the ERO compliance
program.’’ 45
27. While the Commission approves
the retirement of the 18 Reliability
Standard requirements, pursuant to FPA
section 215(d)(4), we remand proposed
Reliability Standard FAC–008–4. As
discussed below, we are satisfied with
the justification for retiring Reliability
Standard FAC–008–3, Requirement R7
contained in NERC’s comments.
However, for the reasons discussed
below, we are not persuaded that it is
appropriate to retire Reliability
Standard FAC–008–3, Requirement R8.
Because the Commission, pursuant to
FPA section 215(d)(4), must remand to
NERC for further consideration a
proposed modification to a Reliability
Standard that the Commission
disapproves in whole or in part, we
remand proposed Reliability Standard
FAC–008–4 to address our concerns
with the retirement of Requirement R8.
B. Reliability Standard FAC–008–3,
Requirements R7 and R8
1. NERC Petition
28. Reliability Standard FAC–008–3,
Requirements R7 and R8 require
generator owners and transmission
owners, respectively, to provide facility
ratings and related information to
requesting reliability coordinators,
planning coordinators, transmission
planners, transmission owners and
transmission operators. NERC contends
that requirements in Reliability
Standards MOD–032–1, IRO–010–2, and
TOP–003–3 render the data provision
obligations of Requirements R7 and R8
in Reliability Standard FAC–008–3
redundant and, therefore, unnecessary
for reliability.46
29. To support its redundancy claim,
NERC explains that Reliability Standard
MOD–032–1 requires generator owners
and transmission owners to provide
information on power capabilities and
facility ratings (Requirement R2) to
enable planning coordinators and
transmission planners to ‘‘jointly
develop steady-state, dynamics, and
short circuit modeling data
requirements and reporting procedures
for the Planning Coordinator’s planning
area’’ (Requirement R1). NERC further
explains that Reliability Standard IRO–
010–2 requires reliability coordinators
to maintain ‘‘a documented
specification for the data necessary to
perform its Operational Planning
Analyses, Real-time monitoring, and
Real-time Assessments. This data
necessarily includes Facility Ratings as
45 Order
No. 788, 145 FERC ¶ 61,147 at P 1.
No. RM19–17–000 Petition at 15.
46 Docket
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inputs to System Operating Limit
monitoring.’’ 47 NERC notes that under
Requirement R3 of IRO–010–2, the
transmission owner and generator
owner must provide such data. Finally,
NERC points out that Reliability
Standard TOP–003–3 requires the
transmission operator to maintain data
specifications (Requirement R1) and the
transmission owner and generation
owner to provide the requested data
(Requirement R5). Relying on this
framework of data specification and
provision, NERC concludes that
Reliability Standard FAC–008–3,
Requirements R7 and R8 ‘‘are now
redundant to other more robust
Reliability Standards and are no longer
needed for reliability.’’ 48
2. NOPR
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30. While agreeing with NERC that
Reliability Standards MOD–032–1, IRO–
010–2 and TOP–003–3 provide a basis
for retiring certain elements of
Reliability Standard FAC–008–3,
Requirements R7 and R8, the
Commission stated that NERC’s petition
‘‘does not address other elements of
Requirements R7 and R8 that do not
appear to be redundant.’’ 49 The NOPR
explained that Reliability Standard
FAC–008–3, Requirements R7 and R8
require generation owners and
transmission owners to provide facility
ratings to several functional entity
types, including transmission owners.
The Commission observed that the three
Reliability Standards NERC claims to
render Requirements R7 and R8
redundant require generator owners and
transmission owners to provide facility
ratings to other functional entities,
including reliability coordinators,
planning coordinators, transmission
planners, and transmission operators,
they do not require the provision of
facility ratings to transmission owners.
The Commission expressed concern that
eliminating the mandatory exchange of
facility-related information with
transmission owners could ‘‘impact
reliability since these requirements
ensure that all transmission owners
have accurate facility-related
information in the models that they use
to plan and operate the bulk electric
system.’’ 50
31. The Commission also noted that
Reliability Standards MOD–032–1, IRO–
47 Id.
at 28.
48 Id.
49 NOPR,
170 FERC ¶ 61,032 at P 31.
50 Id.
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010–2, and TOP–003–3 do not address
sub-requirement R8.1.2 of Reliability
Standard FAC–008–3, relating to the
identity of the next most limiting
equipment of a requested facility.
Further, the Commission observed that
the Reliability Standards NERC claims
are redundant also do not account for
sub-requirement R8.2, which requires
the identification and thermal rating of
the existing next most limiting
equipment of facilities with a thermal
rating that limits the use of that facility
by causing either an Interconnection
Reliability Operating Limit, a limitation
of Total Transfer Capability, an
impediment to generator deliverability,
or an impediment to service to a major
load center as specified in FAC–008–3
(Requirement R8.2).51
32. Therefore, the Commission stated
that Reliability Standard FAC–008–3,
Requirements R7 and R8 do not appear
to be entirely redundant of the
Reliability Standards cited by NERC
and, if retired, could create reliability
gaps. The Commission sought
clarification from NERC because the
petition does not address these nonredundant elements of Requirements R7
and R8.
3. Comments
33. NERC, Trade Associations and
Appelbaum support the retirement of
Reliability Standard FAC–008–3,
Requirements R7 and R8, maintaining
that transmission owners do not need
facility ratings and related information
to perform their responsibilities.52 In
their view, transmission owners play a
more limited role than the planning and
operation function of the other
applicable entities in Reliability
Standard FAC–008–3. NERC notes that
the NERC Glossary describes
transmission owner as an ‘‘entity that
owns and maintains transmission
facilities’’ and that a transmission owner
is ‘‘not the functional entity directly
responsible for complying with
Reliability Standards for planning and
operating the Bulk Power System.’’ 53
Additionally, Appelbaum notes that ‘‘in
many cases’’ transmission owner and
51 This requirement was developed in response to
a directive in Order No. 693. Mandatory Reliability
Standards for the Bulk-Power System, Order No.
693, 118 FERC ¶ 61,218, at P 756, order on reh’g,
Order No. 693–A, 120 FERC ¶ 61,053 (2007); see
also NERC, Petition, Docket No. RD11–10–000, at
11–13, 20–21 (filed Jun. 15, 2011).
52 As discussed below, Appelbaum supports
retaining sub-requirement R8.2.
53 NERC Comments at 8 (citing NERC Glossary of
Terms Used in NERC Reliability Standards).
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65211
generation owner interconnection
agreements exist and contain provisions
governing how facilities are operated
and maintained, including the
methodology and responsibility for
rating facilities.54 By contrast
Bonneville commented, without
elaboration, that it agrees that Reliability
Standards FAC–008, Requirements R7
and R8 should be retained.55
34. NERC and Trade Associations
assert that entities with the
responsibility to plan and operate the
Bulk-Power System (i.e., transmission
operators and transmission planners)
obtain the information they need under
Reliability Standards MOD–032–1 and
TOP–003–3, and thus they do not
require Reliability Standard FAC–008–
3, Requirements R7 and R8.56 Trade
Associations state that ‘‘from a grid
reliability perspective, it is the
responsible Transmission Planner and
Transmission Operator that need the
facility ratings because they are
accountable for the reliable planning
and operation of the bulk electric
system, not the Transmission
Owner.’’ 57 Further, Trade Associations
note that the Commission previously
approved the retirement of Reliability
Standard FAC–008–3, Requirement R4,
which had similar obligations to
Requirements R7 and R8, based on the
Commission’s conclusion that the
requirement to make available such
facility ratings information was an
administrative task that provides little
protection for bulk electric system
reliability.58
35. In response to the Commission’s
concerns regarding Reliability Standard
FAC–008–3, sub-requirements 8.1.2 and
8.2, NERC and Trade Associations assert
that the ‘‘catch-all’’ provision in
Reliability Standard MOD–032–1,
Attachment 1 Data Reporting
Requirements, requires transmission
owners and generation owners to
provide ‘‘other information requested by
the planning coordinator or
transmission provider necessary for
modeling purposes,’’ which includes
data described in sub-requirements 8.1.2
and 8.2.59 Further, NERC and Trade
54 Appelbaum
Comments at 3.
Comments at 2.
56 NERC Comments at 8; Trade Association
Comments at 6.
57 Trade Association Comments at 7.
58 Id. (citing Order No. 788, 145 FERC ¶ 61,147 at
P 19).
59 NERC Comments at 8–9; Trade Association
Comments at 9.
55 Bonneville
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Associations assert that reliability
coordinators and transmission system
operators obtain this information under
the data specification requirements in
Reliability Standards IRO–010–2 and
TOP–003–3.60 NERC concludes that
‘‘[n]ow that these broader data
specification standards are in place,
NERC has identified no reliability need
to maintain additional requirements
expressly requiring the provision of this
data in the FAC–008 standards.’’ 61
36. Appelbaum contends that subrequirement 8.2 should be retained,
however, because it ‘‘support[s] reliable
operations under very limited
circumstances and very limited
locations, yet it is important enough to
retain.’’ 62 He explains that subrequirement 8.2 focuses on specific
circumstances, wherein having
knowledge of the increase in facility
rating based on the next most limiting
equipment improves system operations,
and therefore reliability, and ‘‘adds
resilience to the operation of the Bulk
Power System.’’ 63
4. Commission Determination
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37. Pursuant to FPA section 215(d)(4),
we remand proposed Reliability
Standard FAC–008–4. As discussed
below, we are satisfied with NERC’s
justification for retiring Reliability
Standard FAC–008–3, Requirement R7.
However, for the reasons discussed
below, we are not persuaded that it is
appropriate to retire Reliability
Standard FAC–008–3, Requirement R8.
Because the Commission, pursuant to
FPA section 215(d)(4), must remand to
NERC for further consideration a
proposed modification to a Reliability
Standard that the Commission
disapproves in whole or in part, we
remand proposed Reliability Standard
FAC–008–4 to address our concerns
with the retirement of Requirement R8.
38. Regarding Reliability Standard
FAC–008–3, Requirement R7, we are
persuaded that retiring Requirement R7
60 NERC Comments at 9; Trade Associations
Comments at 8–9 (‘‘Reliability Standard TOP–003–
3 (Operational Reliability Data) Requirements R3
and R5 require the provision of such information
through data specifications that are issued by
Transmission Operators.’’)
61 NERC Comments at 9.
62 Appelbaum Comments at 7 (referring to load
pockets that contain critical infrastructure, dense
populations, or have large financial impacts).
63 Id. at 6–7.
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16:37 Oct 14, 2020
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will not result in a reliability gap
because Requirement R7 is redundant or
otherwise provides little or no reliability
benefit. We agree with NERC that,
unlike transmission operators and
transmission planners that need and
will continue to receive facility ratings
information under other Reliability
Standards, transmission owners do not
need to exchange facility ratings
because they have a more limited
functional role that does not involve
planning and operating the Bulk-Power
System. Only Bonneville, a registered
transmission owner, supported retaining
Requirement R7, and no transmission
owner submitted comments indicating
that it needed the facility ratings
information required under
Requirement R7.64 Moreover, the
Commission did not direct the inclusion
of transmission owners in Requirement
R7. Reliability Standard FAC–008–3,
Requirement R7 was formerly
designated Reliability Standard FAC–
009–1, Requirement R2. The
Commission approved Reliability
Standard FAC–009–1, Requirement R2
in Order No. 693 and did so without
requiring the sharing of facility ratings
information with transmission
owners.65
39. While we determine that the
retirement of Requirement R7 is
appropriate, we are not convinced that
the retirement of sub-requirements
R8.1.2 and 8.2 will not result in a
reliability gap. By retiring subrequirements R8.1.2 and 8.2,
transmission owners will no longer be
required to communicate ratings
information for solely owned limiting
and next most limiting equipment
present on jointly-owned facilities.
Without ratings information on limiting
and next most limiting equipment,
transmission owners could lack the
necessary information to correctly
calculate the ratings for their jointlyowned facilities. The Commission
recognized the importance of this type
of information exchange in Order No.
693 by directing NERC to require the
sharing of information regarding the
64 While Bonneville submitted comments
supporting the retention of Requirement R7,
Bonneville did not elaborate on its position.
65 Order No. 693, 118 FERC ¶ 61,218 at PP 772–
774. NERC subsequently added transmission
owners as recipients, without elaboration, when
NERC revised Reliability Standard FAC–008 and
retired Reliability Standard FAC–009.
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most limiting and next most limiting
equipment when requested.66
40. The transmission owner’s
obligation under Reliability Standard
FAC–008–3, Requirement R3 is also
impacted by the proposed retirement of
Requirement R8. Reliability Standard
FAC–008–3, Requirement R3 requires
transmission owners to have a
documented facility ratings
methodology for solely and jointly
owned facilities that, pursuant to
Requirement R3.3, includes a
‘‘statement that a Facility Rating shall
respect the most limiting applicable
Equipment Rating of the individual
equipment that comprises that Facility.’’
In order to rate equipment accurately to
avoid mis-ratings of jointly-owned
transmission lines, the transmission
owner needs information about the coowner’s most limiting equipment on
shared facilities. Therefore, under these
circumstances, we conclude that
Requirement R8 is needed to ensure that
limiting and next limiting equipment is
identified and communicated.
III. Information Collection Statement
41. The information collection
requirements contained in this final rule
are subject to review by the Office of
Management and Budget (OMB) under
section 3507(d) of the Paperwork
Reduction Act of 1995.67 OMB’s
regulations require approval of certain
information collection requirements
imposed by agency rules.68 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 rule will not be
penalized for failing to respond to these
collections of information unless the
collections of information display a
valid OMB control number.
42. The Commission estimates that
the final rule, which would retire 18
requirements of Reliability Standards
without adding any new obligations on
registered entities, would result in a
total reduction in burden for industry of
42,907.44 hours. The Commission based
the burden reduction estimates on staff
experience, knowledge, and expertise.
66 Order
No. 693, 118 FERC ¶ 61,218 at PP 755–
762.
67 44
68 5
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65213
REDUCTIONS DUE TO FINAL RULE IN DOCKET NOS. RM19–16 & RM19–17
Reliability standard & requirement
Type 69 and number
of entity
Number of
annual
responses per
entity
Total number
of responses
Average
number of
burden hours
per response
Total burden
hours
(1)
(2)
(1) * (2) = (3)
(4)
(3) * (4) = (5)
FERC–725A
FAC–013–2 ........................................................
INT–006–4 R3.1, R4, R5, R5.1, R5.2, R5.3,
R5.4, R5.5.
INT–004–3.1 .......................................................
INT–010–2.1 .......................................................
INT–009–2.1 R2 .................................................
MOD–020–0 .......................................................
RC (12) .......................
BA/TSP (169) ..............
8.33
1
100
169
26.67
56.3
2,667
9,514.7
BA (97) ........................
BA(97) .........................
BA (97) ........................
TP/RP/DP/BA (767) ....
1
1
1
1
97
97
97
767
56.3
56.3
56.3
14.4
5,461.1
5,461.1
5,461.1
11,044.8
Sub-Total for FERC–725A ..........................
1,239 ...........................
........................
1,327
........................
39,609.8
.25
426
0.8
340.8
........................
426
........................
340.8
FERC–725A(1C)
TOP–001–4 R19 & R22 .....................................
Sub-Total for FERC–725A(1C) ...................
BA/TO/GO/DP (1,704)
1,704 ...........................
FERC–725G1
PRC–004–5(i) R4 ...............................................
TO/GO/DP (1,607) ......
.41
659
4.36
2,873.24
Sub-Total for FERC–725G1 .......................
1,607 ...........................
........................
659
........................
2,873.24
FERC–725Z
IRO–002–6 R1 ...................................................
RC (12) .......................
1.17
14
5.97
83.6
Sub-Total for FERC–725Z ..........................
12 ................................
........................
14
........................
83.6
Total Reductions Due to Final Rule in
RM19–16 & RM19–17.
.....................................
........................
2,426
........................
42,907.44
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Titles: FERC–725A, Mandatory
Reliability Standards for the Bulk Power
System; FERC–725A(1C), Mandatory
Reliability Standards for Bulk-Power
System: Reliability Standard TOP–001–
4; FERC–725G1, Mandatory Reliability
Standards for the Bulk-Power System:
Reliability Standard PRC–004–5(i);
FERC–725Z, Mandatory Reliability
Standards: IRO Reliability Standards.
Action: Reductions to Existing
Collections of Information FERC–725A,
FERC–725A(1C), and FERC–725Z; and
Elimination of Collections of
Information, and FERC–725G1.
OMB Control Nos: 1902–0244 (FERC–
725A); 1902–0298 (FERC–
725A(1C));1902–0284 (FERC–725G1);
and 1902–0276 (FERC–725Z).
69 RC=Reliability Coordinator; BA=Balancing
Authority; TSP=Transmission Service Provider;
TO=Transmission Owner; GO=Generator Owner;
DP=Distribution Provider; TP=Transmission
Provider; and RP=Resource Planner. Our estimates
are based on the NERC Compliance Registry of July
17, 2020, which indicates there are 974 entities
registered as GOs, 321 entities registered as TOs, 97
entities registered as BAs, 72 entities registered as
TSPs, 198 entities registered as TPs312 entities
registered as DPs, 160 entities registered as RPs, and
12 entities registered as RCs within the United
States.
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Respondents: Business or other for
profit, and not for profit institutions.
Frequency of Responses: On occasion
(and proposed for deletion).
43. Necessity of the Information: This
proceeding approves the retirement of
four Reliability Standards in their
entirety and five revised Reliability
Standards, reflecting a total of 18 retired
requirements identified by NERC. The
approved retirements either: (1) Provide
little or no reliability benefit; (2) are
administrative in nature or relate
expressly to commercial or business
practices; or (3) are redundant with
other Reliability Standards.
44. Internal review: The Commission
has reviewed NERC’s proposal and
determined that its action is necessary
to implement section 215 of the FPA.
The Commission has assured itself, by
means of its internal review, that there
is specific, objective support for the
burden reduction estimates associated
with the information requirements
approved for retirement.
45. Interested persons may obtain
information on the reporting
requirements by contacting the Federal
Energy Regulatory Commission, Office
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of the Executive Director, 888 First
Street NE, Washington, DC 20426
[Attention: Ellen Brown, email:
DataClearance@ferc.gov, phone: (202)
502–8663, fax: (202) 273–0873].
46. Comments concerning the
information collections and
requirements approved for retirement in
this final rule and the associated burden
estimates, should be sent to the
Commission in this docket and may also
be sent to the Office of Management and
Budget, Office of Information and
Regulatory Affairs [Attention: Desk
Officer for the Federal Energy
Regulatory Commission]. For security
reasons, comments should be sent by
email to OMB at the following email
address: oira_submission@omb.eop.gov.
Please refer to the appropriate OMB
Control Number(s) and Docket Nos.
RM19–16–000 and RM19–17–000 in
your submission.
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V. Environmental Analysis
IV. Regulatory Flexibility Act
Certification
47. The Regulatory Flexibility Act of
1980 (RFA) 70 generally requires a
description and analysis of rulemakings
that will have significant economic
impact on a substantial number of small
entities. The RFA mandates
consideration of regulatory alternatives
that accomplish the stated objectives of
a rule and that minimize any significant
economic impact on a substantial
number of small entities. The Small
Business Administration’s Office of Size
Standards develops the numerical
definition of a small business.71 The
Small Business Administration has
established size standards, for the types
of affected entities (noted in the table
above), that range from a maximum of
250–1,000 employees for an entity and
its affiliates to be considered small.
48. The Commission estimates the
total industry reduction in burden for
all entities (large and small) to be
42,907.44 hours (or approximately 18
hours (rounded) per response). The
Commission believes that this will
reduce burden and cost for all affected
entities.
49. Based on the information above,
the Commission certifies that the
reductions will not have a significant
impact on a substantial number of small
entities. Accordingly, no initial
regulatory flexibility analysis is
required.
VI. Document Availability
51. 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.
52. 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.
VII. Effective Date and Congressional
Notification
54. This final rule is effective
December 14, 2020. The Commission
has determined, with the concurrence of
the Administrator of the Office of
Information and Regulatory Affairs of
OMB, that this 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,
and Government Accountability Office.
By direction of the Commission.
Issued: September 17, 2020.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
Note: the following Appendix will not
appear in the Code of Federal Regulations.
Appendix
Commenters
Abbreviation
Commenter
NERC ..................................................................
Trade Associations .............................................
North American Electric Reliability Corporation.
American Public Power Association, Edison Electric Institute, Large Public Power Council, National Rural Electric Cooperative Association, Transmission Policy Study Group.
Bonneville Power Administration.
Western Area Power Administration.
Jonathan Appelbaum.
Bonneville ...........................................................
WAPA .................................................................
Appelbaum ..........................................................
ACTION:
[FR Doc. 2020–20972 Filed 10–14–20; 8:45 am]
BILLING CODE 6717–01–P
29 CFR Parts 1601 and 1626
RIN 3046–AB07
Procedural Regulations Under Title VII,
ADA, and GINA; Procedures—Age
Discrimination in Employment Act
Equal Employment
Opportunity Commission.
AGENCY:
70 5
U.S.C. 601–612.
CFR 121.101.
15:57 Oct 14, 2020
The Equal Employment
Opportunity Commission (EEOC or
Commission) is amending its procedural
regulations to explicitly provide for
digital transmissions of documents, to
clarify the process for deferral to state
and local agencies, to update no cause
determination procedures, and to
correct typographical and textual errors.
DATES: This final rule is effective on
November 16, 2020.
FOR FURTHER INFORMATION CONTACT:
Kathleen Oram, Assistant Legal
Counsel, (202) 663–4681 (voice) or
72 Regulations Implementing the National
Environmental Policy Act of 1969, Order No. 486,
71 13
VerDate Sep<11>2014
Final rule.
SUMMARY:
EQUAL EMPLOYMENT OPPORTUNITY
COMMISSION
jbell on DSKJLSW7X2PROD with RULES
50. 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.72 The Commission has
categorically excluded certain actions
from this requirement as not having a
significant effect on the human
environment. Included in the exclusion
are rules that are clarifying, corrective,
or procedural or that do not
substantially change the effect of the
regulations being amended.73 The
actions approved here fall within this
categorical exclusion in the
Commission’s regulations.
To access this document in eLibrary,
type the docket number excluding the
last three digits of this document in the
docket number field.
53. User assistance is available for
eLibrary and the Commission’s website
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.
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kathleen.oram@eeoc.gov; Erin Norris,
Senior Attorney, Office of Legal
Counsel, (980) 296–1286 or erin.norris@
eeoc.gov.
On
February 22, 2019 (84 FR 5624), the
Equal Employment Opportunity
Commission (EEOC) published a notice
of proposed rulemaking (NPRM) in the
Federal Register seeking public
comment on proposed revisions to the
EEOC’s procedural regulations for
charges of employment discrimination.
The revisions are intended to serve
several purposes: First, they recognize
SUPPLEMENTARY INFORMATION:
52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs.,
Regulations Preambles 1986–1990 ¶ 30,783 (1987).
73 18 CFR 380.4(a)(2)(ii).
E:\FR\FM\15OCR1.SGM
15OCR1
]]>Agencies
[Federal Register Volume 85, Number 200 (Thursday, October 15, 2020)]
[Rules and Regulations]
[Pages 65207-65214]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-20972]
=======================================================================
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 40
[Docket Nos. RM19-16-000 and RM19-17-000; Order No. 873]
Electric Reliability Organization Proposal To Retire Requirements
in Reliability Standards Under the NERC Standards Efficiency Review
AGENCY: Federal Energy Regulatory Commission, Department of Energy.
ACTION: Final rule.
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SUMMARY: The Federal Energy Regulatory Commission (Commission)
approves the retirement of 18 Reliability Standard requirements
identified by the North American Electric Reliability Corporation
(NERC), the Commission-certified Electric Reliability Organization. The
Commission also remands proposed Reliability Standard FAC-008-4 for
further consideration by NERC. The Commission takes no action at this
time on the proposed retirement of 56 MOD A Reliability Standard
requirements.
DATES: This rule is effective December 14, 2020.
FOR FURTHER INFORMATION CONTACT:
Michael Gandolfo (Technical Information), Office of Electric
Reliability, Division of Reliability Standards and Security, Federal
Energy Regulatory Commission, 888 First Street NE, Washington, DC
20426, Telephone: (202) 502-6817
Mark Bennett (Legal Information), Office of the General Counsel,
Federal Energy Regulatory Commission, 888 First Street NE, Washington,
DC 20426, Telephone: (202) 502-8524
SUPPLEMENTARY INFORMATION:
1. Pursuant to section 215(d)(2) of the Federal Power Act (FPA),\1\
the Commission approves 18 of the 76 Reliability Standard requirements
requested for retirement by the North American Electric Reliability
Corporation (NERC).\2\ For the reasons discussed below, we determine
that the retirement of the 18 Reliability Standard requirements through
the retirement of four Reliability Standards and the modification of
five Reliability Standards is just, reasonable, not unduly
discriminatory or preferential, and in the public interest.\3\ The
Commission also approves the associated violation risk factors,
violation severity levels, implementation plan, and effective dates
proposed by NERC.
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\1\ 16 U.S.C. 824o(d)(2).
\2\ NERC withdrew the originally requested retirement of
Reliability Standard VAR-001-6, Requirement R2 on May 14, 2020.
\3\ The four Reliability Standards being eliminated in their
entirety are Reliability Standards FAC-013-2 (Assessment of Transfer
Capability for the Near-term Transmission Planning Horizon), INT-
004-3.1 (Dynamic Transfers), INT-010-2.1 (Interchange Initiation and
Modification for Reliability), MOD-020-0 (Providing Interruptible
Demands and Direct Control Load Management Data to System Operations
and Reliability Coordinators). The five modified Reliability
Standards approved herein are Reliability Standards INT-006-5
(Evaluation of Interchange Transactions), INT-009-3 (Implementation
of Interchange) and PRC-004-6 (Protection System Misoperation
Identification and Correction), IRO-002-7 (Reliability
Coordination--Monitoring and Analysis), TOP-001-5 (Transmission
Operations).
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2. As set forth in the petitions, we conclude that the 18
Reliability Standard requirements: (1) Provide little or no reliability
benefit; (2) are administrative in nature or relate expressly to
commercial or business practices; or (3) are redundant with other
Reliability Standards. These justifications are consistent with the
Commission-approved rationale for retiring Reliability Standard
requirements articulated in prior proceedings.\4\
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\4\ North American Electric Reliability Corp., 138 FERC ]
61,193, at P 81 (March 2012 Order), order on reh'g and
clarification, 139 FERC ] 61,168 (2012); Electric Reliability
Organization Proposal to Retire Requirements in Reliability
Standards, Order No. 788, 145 FERC ] 61,147, at P 1 (2013) (stating
that the proposed retirements ``meet the benchmarks set forth in the
Commission's March 15, 2012 Order'').
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3. The approved retirements will enhance the efficiency of the
Reliability Standards program by reducing duplicative or otherwise
unnecessary regulatory burdens.
4. In the Notice of Proposed Rulemaking (NOPR), the Commission also
proposed to approve the retirement of 56 requirements constituting the
so-called MOD A Reliability Standards.\5\ The NOPR indicated that, if
approved, the Commission intends to coordinate the effective dates for
the retirement of the MOD A Reliability Standards with successor North
American Energy Standards Board (NAESB) business practice standards.\6\
On March 30, 2020, NAESB submitted Version 003.3 of the Standards for
Business Practices and Communication Protocols for Public Utilities
that, inter alia, include Modeling business practices. On July 16,
2020, the Commission issued a NOPR in Docket Nos. RM05-5-029 and RM05-
5-030 proposing to amend its regulations to incorporate by reference,
with certain enumerated exceptions, NAESB's Version 003.3 Business
Practices.\7\ Comments on the NAESB NOPR are due on November 3,
2020.\8\ In light of these developments, this final rule does not
address the retirement of the MOD A Reliability Standards. The
Commission will determine the appropriate action regarding the proposed
retirement of the MOD A Reliability Standards at a later time.
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\5\ Electric Reliability Organization Proposal to Retire
Requirements in Reliability Standards Under the NERC Standards
Efficiency Review, 170 FERC ] 61,032 (2020) (NOPR). The MOD A
Reliability Standards proposed for retirement are MOD-001-1a
(Available Transmission System Capability), MOD-004-1 (Capacity
Benefit Margin), MOD-008-1 (Transmission Reliability Margin
Calculation Methodology), MOD-028-2 (Area Interchange Methodology),
MOD-029-2a (Rated System Path Methodology), and MOD-030-3 (Flowgate
Methodology).
\6\ NOPR, 170 FERC ] 61,032, at P 21, n.35.
\7\ Standards for Business Practices and Communication Protocols
for Public Utilities, Notice of Proposed Rulemaking, Order No. 676,
85 FR 10571, 172 FERC ] 61,047 (2020).
\8\ Standards for Business Practices and Communication Protocols
for Public Utilities, 85 FR 55201 (September 4, 2020).
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5. While the Commission approves the 18 retirements, pursuant to
FPA section 215(d)(4), we remand proposed Reliability Standard FAC-008-
4.\9\ As discussed below, we are satisfied with NERC's justification
for retiring Reliability Standard FAC-008-3, Requirement R7. However,
for the reasons discussed below, we are not persuaded that it is
appropriate to retire Reliability Standard FAC-008-3, Requirement R8.
Because the Commission, pursuant to FPA section 215(d)(4), must remand
to NERC for further consideration a proposed modification to a
Reliability Standard that the Commission disapproves in whole or in
part, we remand proposed Reliability Standard FAC-008-4 to address our
concerns with the retirement of Requirement R8.
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\9\ 16 U.S.C. 824o(d)(4).
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I. Background
A. Section 215 of the FPA
6. Section 215 of the FPA requires the Commission-certified
Electric Reliability Organization (ERO) to develop mandatory and
enforceable Reliability Standards, subject to Commission review and
approval. Once approved, the Reliability Standards may be enforced in
the United States by the ERO subject to Commission oversight, or by the
Commission independently.\10\ Pursuant to the requirements of FPA
section 215, the Commission established
[[Page 65208]]
a process to select and certify an ERO \11\ and, subsequently,
certified NERC as the ERO.\12\
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\10\ 16 U.S.C. 824o(e)(3).
\11\ Rules Concerning Certification of the Electric Reliability
Organization; and Procedures for the Establishment, Approval, and
Enforcement of Electric Reliability Standards, Order No. 672, 114
FERC ] 61,104, order on reh'g, Order No. 672-A, 114 FERC ] 61,328
(2006).
\12\ North American Electric Reliability Corp., 116 FERC ]
61,062, order on reh'g and compliance, 117 FERC ] 61,126 (2006),
aff'd sub nom. Alcoa Inc. v. FERC, 564 F.3d 1342 (DC Cir. 2009).
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B. Prior Retirements of Reliability Standard Requirements
7. In the March 2012 Order, the Commission observed that NERC's
compliance program could be made more efficient by removing existing
requirements deemed unnecessary for reliability.\13\ The Commission
stated that if NERC believes certain Reliability Standards or
requirements should be revised or removed, ``we invite NERC to make
specific proposals to the Commission identifying the Standards or
requirements and setting forth in detail the technical basis for its
belief.'' \14\ Further, the Commission encouraged NERC ``to propose
appropriate mechanisms to identify and remove from the Commission-
approved Reliability Standards unnecessary or redundant requirements.''
\15\
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\13\ March 2012 Order, 138 FERC ] 61,193 at P 81.
\14\ Id.
\15\ Id.
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8. In response, in February 2013, NERC proposed to retire 34
requirements within 19 Reliability Standards based on the justification
that the requirements ``are redundant or otherwise unnecessary'' and
that ``violations of these requirements . . . pose a lesser risk to the
reliability of the Bulk-Power System.'' \16\ NERC explained that the
proposed retirements were based upon three major criteria: (1) Whether
a proposed retirement would create a reliability gap; (2) whether the
requirement in question is administrative; involves data collection,
retention, documentation, periodic updates or reporting; is a
commercial or business practice; or is redundant; and (3) consideration
of responses to seven questions regarding the proposed retirement,
including whether the requirement was part of a ``find, fix and track''
filing, the requirement's violation risk factor level, and whether the
requirement is part of on-going standards development project.\17\
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\16\ NERC, Petition, Docket No. RM13-8-000, at 2 (filed Feb. 28,
2013).
\17\ Id. at 4.
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9. On November 21, 2013, the Commission approved the retirements
that NERC proposed, and determined that the retirements ``meet the
benchmarks'' set forth in the March 2012 Order that ``requirements
proposed for retirement either: (1) Provide little protection for Bulk-
Power System reliability; or (2) are redundant with other aspects of
the Reliability Standards.'' \18\
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\18\ Electric Reliability Organization Proposal to Retire
Requirements in Reliability Standards, Order No. 788, 145 FERC ]
61,147 (2013).
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C. NERC Standards Efficiency Review Project and Petitions
1. NERC Standards Efficiency Review Project
10. NERC states that the proposed retirements are the product of
its Standards Efficiency Review (SER) Project. NERC explains that the
SER Project began in 2017 ``to achieve [NERC's] long-term strategic
goal of establishing risk-based controls to minimize [Bulk-Power
System] reliability risk while also driving operational efficiencies
and effectiveness.'' \19\ NERC states that in Phase 1 of the SER
Project, teams of industry experts conducted a risk-based analysis of
non-CIP Reliability Standards.\20\ The purpose of this review,
according to NERC, was ``to identify Reliability Standard requirements
that provide little or no benefit to reliability and should be
retired.'' \21\ NERC maintains that, unlike the periodic reviews \22\
of Reliability Standards performed by NERC pursuant to the NERC Rules
of Procedure, the SER Project involved ``exploring the relationships
between the different Reliability Standards in a deeper way than would
be feasible during a targeted periodic review . . . [and] allowed NERC
to identify requirements that are not necessary for reliability or that
are redundant to other requirements.'' \23\
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\19\ Docket No. RM19-16-000 Petition at 3; Docket No. RM19-17-
000 Petition at 4.
\20\ NERC states that Phase 2 of the SER Project will ``consider
recommendations for Reliability Standard revisions that would
further improve the efficiency of the body of NERC Reliability
Standards, such as through consolidation of Reliability Standard
requirements . . . [and will] consider recommendations for
standards-based improvements that would further reduce
inefficiencies and promote effectiveness.'' Docket No. RM19-16-000
Petition at 6-7; Docket No. RM19-17-000 Petition at 7.
\21\ Docket No. RM19-16-000 Petition at 5; Docket No. RM19-17-
000 Petition at 6.
\22\ The NERC Rules of Procedure require a periodic review of
each Reliability Standard; and they provide for a five-year cyclical
review of Reliability Standards approved by the American National
Standards Institute (ANSI) and 10-year cyclical review for
Reliability Standards not approved by ANSI. See NERC Rules of
Procedure, Section 317 and Appendix 3A (Standards Process Manual),
section 13.0.
\23\ Docket No. RM19-16-000 Petition at 5; Docket No. RM19-17-
000 Petition at 6.
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11. NERC contends that the SER Project ``was conducted in an open
and transparent manner, with broad industry participation.'' \24\ NERC
states that it initiated the standards development process to consider
the retirement recommendations generated by the SER Project.
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\24\ Docket No. RM19-16-000 Petition at 5-6; Docket No. RM19-17-
000 Petition at 7.
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2. IRO, TOP and VAR Petition (Docket No. RM19-16-000)
12. On June 7, 2019, in Docket No. RM19-16-000, NERC submitted for
Commission approval new versions of three Reliability Standards: IRO-
002-7 (Reliability Coordination--Monitoring and Analysis), TOP-001-5
(Transmission Operations), and VAR-001-6 (Voltage and Reactive
Control).\25\ NERC explains that approval of the new versions would
result in the retirement of four requirements from the currently-
effective versions of the Reliability Standards.\26\ NERC proposes to
retire three of the existing requirements in Reliability Standards IRO-
002 and TOP-001 that require the reliability coordinator, transmission
operator, and balancing authority to have data exchange capabilities
with entities having data needed to perform operational planning
analyses and to develop operating plans for next-day operations. NERC
contends that these requirements are redundant and not necessary
``because the performance required by these requirements is inherent to
the performance of other Reliability Standard requirements.'' \27\
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\25\ On May 14, 2020, NERC withdrew its request to retire
Reliability Standard VAR-001-6, Requirement R2.
\26\ The revised versions of the IRO and TOP Reliability
Standards are not attached to this final rule. The complete text of
the Reliability Standards is available on the Commission's eLibrary
document retrieval system in Docket No. RM19-16-000 and is posted on
the ERO's website, https://www.nerc.com.
\27\ Docket No. RM19-16-000 Petition at 7.
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13. In particular, NERC maintains that the data exchange capability
requirement in Reliability Standard IRO-002-5, Requirement R1 is
covered by Reliability Standard IRO-008-2, Requirement R1, which
obligates the reliability coordinator to perform operational planning
analyses to assess whether the planned operations for the next-day will
exceed System Operating Limits and Interconnection Reliability
Operating Limits within its Wide Area. NERC asserts that ``to perform
the required operational planning analyses, the Reliability Coordinator
must have the data it deems necessary from those entities that possess
it.'' \28\
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\28\ Id. at 14-15.
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[[Page 65209]]
14. Additionally, regarding data exchange, NERC cites Reliability
Standard IRO-010-2 (Reliability Coordinator Data Specification and
Collection) and its stated purpose of preventing instability,
uncontrolled separation, or cascading outages ``by ensuring the
Reliability Coordinator has the data it needs to monitor and assess the
operation of its Reliability Coordinator Area.'' \29\ NERC states that
under Reliability Standard IRO-010-2, Requirements R1, R2 and R3, the
reliability coordinator must specify the data necessary for it to
perform its operational planning analyses and provide the
specifications to the entities from which it needs data who then must
comply with the data request using a mutually agreeable format and
security protocols.
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\29\ Id. at 15.
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15. NERC states that the performance of Reliability Standard IRO-
010-2, Requirements R1, R2 and R3 is premised on the existence of data
exchange capabilities, ``regardless of whether a separate requirement
expressly requires the Reliability Coordinator to have data exchange
capabilities in place.'' \30\ NERC therefore asserts that Reliability
Standard IRO-002-5, Requirement R1 provides no additional reliability
benefit and ``is therefore unnecessary and redundant and should be
retired.'' \31\
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\30\ Id.
\31\ Id.
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16. NERC also proposes to retire Reliability Standards TOP-001-4,
Requirements R19 and R22. NERC explains that Requirements R19 and R22
of Reliability Standard TOP-001-4 require transmission operators and
balancing authorities respectively to have data exchange capabilities
with entities from which they need data to perform operational planning
analyses (transmission operators) and next-day Operating Plans
(balancing authorities). NERC notes, however, that Reliability Standard
TOP-002-4, Requirement R1 requires a transmission operator to perform
an operational planning analyses to determine whether next-day
operations within its area will exceed System Operating Limits. NERC
also states that TOP-002-4, Requirement R4 requires each balancing
authority to have a next-day Operating Plan addressing expected
generation resource commitment and dispatch, Interchange scheduling and
related matters. NERC asserts that to satisfy these requirements,
``each Transmission Operator and Balancing Authority must have the data
it deems necessary from those entities that possess it.'' \32\
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\32\ Id. at 16.
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17. NERC also points to Reliability Standard TOP-003-3 (Operational
Reliability Data) whose purpose is ``to ensure that the Transmission
Operator and Balancing Authority have data needed to fulfill their
operational and planning responsibilities.'' NERC contends that the
requirements in Reliability Standard TOP-003-3 largely mirror the
requirements in Reliability Standard IRO-010-2 discussed above, and
thus, as with Reliability Standard IRO-010-2, transmission operators
and balancing authorities must have data exchange capabilities with its
reporting entities to satisfy the requirements of Reliability TOP-003-
3. For these reasons, NERC contends that Reliability Standards TOP-001-
4, Requirements R19 and R22 are unnecessary and redundant and should be
retired.
18. NERC requests that the Commission approve the implementation
plan, attached to NERC's petition as Exhibit B, and the associated
violation risk factors and violation severity levels described in
Exhibit D. The implementation plan provides that proposed Reliability
Standards IRO-002-7 and TOP-001-5 would become effective on the first
day of the first calendar quarter that is three months after regulatory
approval. The currently effective versions of the Reliability Standards
would be retired immediately prior to the effective date of the revised
Reliability Standards. NERC explains that the requested timeline
accounts for the time entities will need to update their systems and
related documentation.
3. FAC, INT, MOD and PRC Petition (Docket No. RM19-17-000)
19. On June 7, 2019, in Docket No. RM19-17-000, NERC submitted for
Commission approval the proposed retirement of 10 currently-effective
FAC, INT, MOD and PRC Reliability Standards in their entirety without
replacement.\33\ Additionally, NERC proposed modifications to four
Reliability Standards reflecting the retirement of certain requirements
from the currently-effective versions: FAC-008-4 (Facility Ratings),
INT-006-5 (Evaluation of Interchange Transactions), INT-009-3
(Implementation of Interchange) and PRC-004-6 (Protection System
Misoperation Identification and Correction).\34\ NERC asserts that its
proposals would not adversely impact reliability, but rather they
``would benefit reliability by allowing entities to focus their
resources on those Reliability Standard requirements that promote the
reliable operation and planning of the BPS [Bulk-Power System] and
avoid unnecessary regulatory burden.'' \35\
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\33\ Reliability Standards FAC-013-2 (Assessment of Transfer
Capability for the Near-term Transmission Planning Horizon), INT-
004-3.1 (Dynamic Transfers), INT-010-2.1 (Interchange Initiation and
Modification for Reliability), MOD-001-1a (Available Transmission
System Capability), MOD-004-1 (Capacity Benefit Margin), MOD-008-1
(Transmission Reliability Margin Calculation Methodology), MOD-020-0
(Providing Interruptible Demands and Direct Control Load Management
Data to System Operations and Reliability Coordinators), MOD-028-2
(Area Interchange Methodology), MOD-029-2a (Rated System Path
Methodology), and MOD-030-3 (Flowgate Methodology).
\34\ The revised versions of the FAC, INT and PRC Reliability
Standards are not attached to this final rule. The complete text of
the Reliability Standards is available on the Commission's eLibrary
document retrieval system in Docket No. RM19-17-000 and is posted on
the ERO's website, https://www.nerc.com.
\35\ Docket No. RM19-17-000 Petition at 7.
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20. Regarding the full FAC, INT, MOD and PRC Reliability Standards
proposed for retirement, NERC contends that they are not necessary and
that removing them would not adversely affect reliability. NERC states
that retirement of the ten full Reliability Standards is justified
because they are primarily administrative in nature or largely related
to commercial or business practices, and therefore no longer serve a
reliability purpose.\36\ For example, NERC states that the transfer
capability assessment required under Reliability Standard FAC-013-2
``serves only a market function'' and ``is not an indicator of [bulk
electric system] reliability.'' \37\ In supporting its conclusion that
Reliability Standard INT-010-2.1 primarily relates to commercial and
business practices, NERC notes that in 2013 the NERC Independent
Experts Review Panel recommended retiring the previous version of the
Reliability Standard ``due to overlap with the NAESB Electronic Tagging
Functional Specification.'' \38\
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\36\ Docket No. RM19-17-000 Petition at 13-24.
\37\ Id. at 13.
\38\ Id. at 16-19.
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21. Similarly, regarding the MOD Reliability Standards, NERC states
that ``[Available Transfer Capability] and [Available Flowgate
Methodology], as well as e-Tags, are commercially-focused elements
facilitating interchange and balancing of interchange,'' and that
system operators maintain reliability by monitoring Real-time flows
based on System Operating Limits and Interconnection Reliability
Operating Limits.\39\ In particular, NERC
[[Page 65210]]
explains that information on Interruptible Demands and Direct Control
Load Management required under Reliability Standard MOD-020-0 is not
useful for transmission operators and reliability coordinators, ``who
must plan and operate the [Bulk-Power System] within System Operating
Limits and Interconnection Reliability Operating Limits under the TOP
and IRO Reliability Standards.'' \40\
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\39\ Id. at 21.
\40\ Id. at 23.
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22. Regarding NERC's proposed modified Reliability Standards, NERC
states that the data provision obligations of currently effective
Reliability Standard FAC-008-3, Requirements R7 and R8 are redundant
with Reliability Standards MOD-032-1, IRO-010-2 and TOP-003-3. NERC
asserts that Requirements R3.1, R4 and R5 of currently-effective
Reliability Standard INT-006-4 ``provide little, if any, benefit or
protection to the reliability operation of the [Bulk-Power System]''
\41\ and that the substance of Requirements R4 and R5 in particular
relate to commercial or business practices and are better addressed
through the balancing authority's e-Tag Authority Service.\42\ Also,
NERC states that Requirement R1 of currently-effective Reliability
Standard INT-009-2.1 is being revised to remove the reference to
Reliability Standard INT-010, which is also proposed for retirement,
and Requirement R2 is redundant with Reliability Standard BAL-005-1,
Requirement R7.\43\ Finally, NERC states that it has determined that
rather than the ``specific, recurring and inflexible timeframe'' set
forth in Requirement R4 of currently-effective Reliability Standard
PRC-004-5 for identifying the cause of a protection system
misoperation, ``it would be more effective to have entities investigate
the causes of misoperations according to their own internal control
policies and procedures.'' \44\
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\41\ Id. at 29.
\42\ Id. at 29-31.
\43\ Id. at 31-32.
\44\ Id. at 34.
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23. NERC requests that the Commission approve the implementation
plan, attached to NERC's petition as Exhibit B, and the associated
violation risk factors and violation severity levels, attached to
NERC's petition as Exhibit D, which are generally unchanged from the
currently effective versions. For the Reliability Standards retired in
their entirety, NERC proposes an effective date that is immediately
upon regulatory approval of the retirement. NERC also seeks to retire
the currently effective Reliability Standards FAC-008-3, INT-006-4,
INT-009-2.1, and PRC-004-5(i) immediately prior to the effective date
of their new versions.
D. Notice of Proposed Rulemaking
24. On January 23, 2020, the Commission issued a NOPR proposing to
approve the retirement of 74 of the 77 Reliability Standard
requirements requested by NERC. However, while proposing to approve the
majority of Reliability Standard requirement retirements NERC proposed,
the Commission expressed concern with NERC's justification for
retirement of Reliability Standard FAC-008-3, Requirement R7 and R8
because those requirements did not appear to be entirely redundant of
other existing Reliability Standards. Accordingly, the Commission
sought more information from NERC regarding how other existing
Reliability Standards render Reliability Standard FAC-008-3,
Requirements R7 and R8 redundant, and how retiring those requirements
would not create a reliability gap.
25. In response to the NOPR, the Commission received comments from
NERC, Trade Associations (i.e., American Public Power Association,
Edison Electric Institute, Large Public Power Council, National Rural
Electric Cooperative Association, Transmission Access Policy Study
Group), Bonneville Power Administration, Western Area Power
Administration, and Jonathan Appelbaum. We address below the issues
raised in the NOPR and comments.
II. Discussion
A. Approved Retirement of 18 Reliability Standard Requirements
26. Pursuant to section 215(d)(2) of the FPA, the Commission
approves NERC's request to retire 18 Reliability Standard requirements
as just, reasonable, not unduly discriminatory or preferential, and in
the public interest. NERC's petitions provide an adequate basis to
conclude that the requirements proposed for retirement: (1) Provide
little or no reliability benefit; (2) are administrative in nature or
relate expressly to commercial or business practices; or (3) are
redundant with other Reliability Standards. NERC's justifications for
retiring the 18 requirements are consistent with the retirement
guidelines set forth by the Commission in Order No. 788 and with the
determination that ``requirements proposed for retirement can be
removed from the Reliability Standards with little effect on
reliability and an increase in efficiency of the ERO compliance
program.'' \45\
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\45\ Order No. 788, 145 FERC ] 61,147 at P 1.
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27. While the Commission approves the retirement of the 18
Reliability Standard requirements, pursuant to FPA section 215(d)(4),
we remand proposed Reliability Standard FAC-008-4. As discussed below,
we are satisfied with the justification for retiring Reliability
Standard FAC-008-3, Requirement R7 contained in NERC's comments.
However, for the reasons discussed below, we are not persuaded that it
is appropriate to retire Reliability Standard FAC-008-3, Requirement
R8. Because the Commission, pursuant to FPA section 215(d)(4), must
remand to NERC for further consideration a proposed modification to a
Reliability Standard that the Commission disapproves in whole or in
part, we remand proposed Reliability Standard FAC-008-4 to address our
concerns with the retirement of Requirement R8.
B. Reliability Standard FAC-008-3, Requirements R7 and R8
1. NERC Petition
28. Reliability Standard FAC-008-3, Requirements R7 and R8 require
generator owners and transmission owners, respectively, to provide
facility ratings and related information to requesting reliability
coordinators, planning coordinators, transmission planners,
transmission owners and transmission operators. NERC contends that
requirements in Reliability Standards MOD-032-1, IRO-010-2, and TOP-
003-3 render the data provision obligations of Requirements R7 and R8
in Reliability Standard FAC-008-3 redundant and, therefore, unnecessary
for reliability.\46\
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\46\ Docket No. RM19-17-000 Petition at 15.
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29. To support its redundancy claim, NERC explains that Reliability
Standard MOD-032-1 requires generator owners and transmission owners to
provide information on power capabilities and facility ratings
(Requirement R2) to enable planning coordinators and transmission
planners to ``jointly develop steady-state, dynamics, and short circuit
modeling data requirements and reporting procedures for the Planning
Coordinator's planning area'' (Requirement R1). NERC further explains
that Reliability Standard IRO-010-2 requires reliability coordinators
to maintain ``a documented specification for the data necessary to
perform its Operational Planning Analyses, Real-time monitoring, and
Real-time Assessments. This data necessarily includes Facility Ratings
as
[[Page 65211]]
inputs to System Operating Limit monitoring.'' \47\ NERC notes that
under Requirement R3 of IRO-010-2, the transmission owner and generator
owner must provide such data. Finally, NERC points out that Reliability
Standard TOP-003-3 requires the transmission operator to maintain data
specifications (Requirement R1) and the transmission owner and
generation owner to provide the requested data (Requirement R5).
Relying on this framework of data specification and provision, NERC
concludes that Reliability Standard FAC-008-3, Requirements R7 and R8
``are now redundant to other more robust Reliability Standards and are
no longer needed for reliability.'' \48\
---------------------------------------------------------------------------
\47\ Id. at 28.
\48\ Id.
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2. NOPR
30. While agreeing with NERC that Reliability Standards MOD-032-1,
IRO-010-2 and TOP-003-3 provide a basis for retiring certain elements
of Reliability Standard FAC-008-3, Requirements R7 and R8, the
Commission stated that NERC's petition ``does not address other
elements of Requirements R7 and R8 that do not appear to be
redundant.'' \49\ The NOPR explained that Reliability Standard FAC-008-
3, Requirements R7 and R8 require generation owners and transmission
owners to provide facility ratings to several functional entity types,
including transmission owners. The Commission observed that the three
Reliability Standards NERC claims to render Requirements R7 and R8
redundant require generator owners and transmission owners to provide
facility ratings to other functional entities, including reliability
coordinators, planning coordinators, transmission planners, and
transmission operators, they do not require the provision of facility
ratings to transmission owners. The Commission expressed concern that
eliminating the mandatory exchange of facility-related information with
transmission owners could ``impact reliability since these requirements
ensure that all transmission owners have accurate facility-related
information in the models that they use to plan and operate the bulk
electric system.'' \50\
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\49\ NOPR, 170 FERC ] 61,032 at P 31.
\50\ Id.
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31. The Commission also noted that Reliability Standards MOD-032-1,
IRO-010-2, and TOP-003-3 do not address sub-requirement R8.1.2 of
Reliability Standard FAC-008-3, relating to the identity of the next
most limiting equipment of a requested facility. Further, the
Commission observed that the Reliability Standards NERC claims are
redundant also do not account for sub-requirement R8.2, which requires
the identification and thermal rating of the existing next most
limiting equipment of facilities with a thermal rating that limits the
use of that facility by causing either an Interconnection Reliability
Operating Limit, a limitation of Total Transfer Capability, an
impediment to generator deliverability, or an impediment to service to
a major load center as specified in FAC-008-3 (Requirement R8.2).\51\
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\51\ This requirement was developed in response to a directive
in Order No. 693. Mandatory Reliability Standards for the Bulk-Power
System, Order No. 693, 118 FERC ] 61,218, at P 756, order on reh'g,
Order No. 693-A, 120 FERC ] 61,053 (2007); see also NERC, Petition,
Docket No. RD11-10-000, at 11-13, 20-21 (filed Jun. 15, 2011).
---------------------------------------------------------------------------
32. Therefore, the Commission stated that Reliability Standard FAC-
008-3, Requirements R7 and R8 do not appear to be entirely redundant of
the Reliability Standards cited by NERC and, if retired, could create
reliability gaps. The Commission sought clarification from NERC because
the petition does not address these non-redundant elements of
Requirements R7 and R8.
3. Comments
33. NERC, Trade Associations and Appelbaum support the retirement
of Reliability Standard FAC-008-3, Requirements R7 and R8, maintaining
that transmission owners do not need facility ratings and related
information to perform their responsibilities.\52\ In their view,
transmission owners play a more limited role than the planning and
operation function of the other applicable entities in Reliability
Standard FAC-008-3. NERC notes that the NERC Glossary describes
transmission owner as an ``entity that owns and maintains transmission
facilities'' and that a transmission owner is ``not the functional
entity directly responsible for complying with Reliability Standards
for planning and operating the Bulk Power System.'' \53\ Additionally,
Appelbaum notes that ``in many cases'' transmission owner and
generation owner interconnection agreements exist and contain
provisions governing how facilities are operated and maintained,
including the methodology and responsibility for rating facilities.\54\
By contrast Bonneville commented, without elaboration, that it agrees
that Reliability Standards FAC-008, Requirements R7 and R8 should be
retained.\55\
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\52\ As discussed below, Appelbaum supports retaining sub-
requirement R8.2.
\53\ NERC Comments at 8 (citing NERC Glossary of Terms Used in
NERC Reliability Standards).
\54\ Appelbaum Comments at 3.
\55\ Bonneville Comments at 2.
---------------------------------------------------------------------------
34. NERC and Trade Associations assert that entities with the
responsibility to plan and operate the Bulk-Power System (i.e.,
transmission operators and transmission planners) obtain the
information they need under Reliability Standards MOD-032-1 and TOP-
003-3, and thus they do not require Reliability Standard FAC-008-3,
Requirements R7 and R8.\56\ Trade Associations state that ``from a grid
reliability perspective, it is the responsible Transmission Planner and
Transmission Operator that need the facility ratings because they are
accountable for the reliable planning and operation of the bulk
electric system, not the Transmission Owner.'' \57\ Further, Trade
Associations note that the Commission previously approved the
retirement of Reliability Standard FAC-008-3, Requirement R4, which had
similar obligations to Requirements R7 and R8, based on the
Commission's conclusion that the requirement to make available such
facility ratings information was an administrative task that provides
little protection for bulk electric system reliability.\58\
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\56\ NERC Comments at 8; Trade Association Comments at 6.
\57\ Trade Association Comments at 7.
\58\ Id. (citing Order No. 788, 145 FERC ] 61,147 at P 19).
---------------------------------------------------------------------------
35. In response to the Commission's concerns regarding Reliability
Standard FAC-008-3, sub-requirements 8.1.2 and 8.2, NERC and Trade
Associations assert that the ``catch-all'' provision in Reliability
Standard MOD-032-1, Attachment 1 Data Reporting Requirements, requires
transmission owners and generation owners to provide ``other
information requested by the planning coordinator or transmission
provider necessary for modeling purposes,'' which includes data
described in sub-requirements 8.1.2 and 8.2.\59\ Further, NERC and
Trade
---------------------------------------------------------------------------
\59\ NERC Comments at 8-9; Trade Association Comments at 9.
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[[Page 65212]]
Associations assert that reliability coordinators and transmission
system operators obtain this information under the data specification
requirements in Reliability Standards IRO-010-2 and TOP-003-3.\60\ NERC
concludes that ``[n]ow that these broader data specification standards
are in place, NERC has identified no reliability need to maintain
additional requirements expressly requiring the provision of this data
in the FAC-008 standards.'' \61\
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\60\ NERC Comments at 9; Trade Associations Comments at 8-9
(``Reliability Standard TOP-003-3 (Operational Reliability Data)
Requirements R3 and R5 require the provision of such information
through data specifications that are issued by Transmission
Operators.'')
\61\ NERC Comments at 9.
---------------------------------------------------------------------------
36. Appelbaum contends that sub-requirement 8.2 should be retained,
however, because it ``support[s] reliable operations under very limited
circumstances and very limited locations, yet it is important enough to
retain.'' \62\ He explains that sub-requirement 8.2 focuses on specific
circumstances, wherein having knowledge of the increase in facility
rating based on the next most limiting equipment improves system
operations, and therefore reliability, and ``adds resilience to the
operation of the Bulk Power System.'' \63\
---------------------------------------------------------------------------
\62\ Appelbaum Comments at 7 (referring to load pockets that
contain critical infrastructure, dense populations, or have large
financial impacts).
\63\ Id. at 6-7.
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4. Commission Determination
37. Pursuant to FPA section 215(d)(4), we remand proposed
Reliability Standard FAC-008-4. As discussed below, we are satisfied
with NERC's justification for retiring Reliability Standard FAC-008-3,
Requirement R7. However, for the reasons discussed below, we are not
persuaded that it is appropriate to retire Reliability Standard FAC-
008-3, Requirement R8. Because the Commission, pursuant to FPA section
215(d)(4), must remand to NERC for further consideration a proposed
modification to a Reliability Standard that the Commission disapproves
in whole or in part, we remand proposed Reliability Standard FAC-008-4
to address our concerns with the retirement of Requirement R8.
38. Regarding Reliability Standard FAC-008-3, Requirement R7, we
are persuaded that retiring Requirement R7 will not result in a
reliability gap because Requirement R7 is redundant or otherwise
provides little or no reliability benefit. We agree with NERC that,
unlike transmission operators and transmission planners that need and
will continue to receive facility ratings information under other
Reliability Standards, transmission owners do not need to exchange
facility ratings because they have a more limited functional role that
does not involve planning and operating the Bulk-Power System. Only
Bonneville, a registered transmission owner, supported retaining
Requirement R7, and no transmission owner submitted comments indicating
that it needed the facility ratings information required under
Requirement R7.\64\ Moreover, the Commission did not direct the
inclusion of transmission owners in Requirement R7. Reliability
Standard FAC-008-3, Requirement R7 was formerly designated Reliability
Standard FAC-009-1, Requirement R2. The Commission approved Reliability
Standard FAC-009-1, Requirement R2 in Order No. 693 and did so without
requiring the sharing of facility ratings information with transmission
owners.\65\
---------------------------------------------------------------------------
\64\ While Bonneville submitted comments supporting the
retention of Requirement R7, Bonneville did not elaborate on its
position.
\65\ Order No. 693, 118 FERC ] 61,218 at PP 772-774. NERC
subsequently added transmission owners as recipients, without
elaboration, when NERC revised Reliability Standard FAC-008 and
retired Reliability Standard FAC-009.
---------------------------------------------------------------------------
39. While we determine that the retirement of Requirement R7 is
appropriate, we are not convinced that the retirement of sub-
requirements R8.1.2 and 8.2 will not result in a reliability gap. By
retiring sub-requirements R8.1.2 and 8.2, transmission owners will no
longer be required to communicate ratings information for solely owned
limiting and next most limiting equipment present on jointly-owned
facilities. Without ratings information on limiting and next most
limiting equipment, transmission owners could lack the necessary
information to correctly calculate the ratings for their jointly-owned
facilities. The Commission recognized the importance of this type of
information exchange in Order No. 693 by directing NERC to require the
sharing of information regarding the most limiting and next most
limiting equipment when requested.\66\
---------------------------------------------------------------------------
\66\ Order No. 693, 118 FERC ] 61,218 at PP 755-762.
---------------------------------------------------------------------------
40. The transmission owner's obligation under Reliability Standard
FAC-008-3, Requirement R3 is also impacted by the proposed retirement
of Requirement R8. Reliability Standard FAC-008-3, Requirement R3
requires transmission owners to have a documented facility ratings
methodology for solely and jointly owned facilities that, pursuant to
Requirement R3.3, includes a ``statement that a Facility Rating shall
respect the most limiting applicable Equipment Rating of the individual
equipment that comprises that Facility.'' In order to rate equipment
accurately to avoid mis-ratings of jointly-owned transmission lines,
the transmission owner needs information about the co-owner's most
limiting equipment on shared facilities. Therefore, under these
circumstances, we conclude that Requirement R8 is needed to ensure that
limiting and next limiting equipment is identified and communicated.
III. Information Collection Statement
41. The information collection requirements contained in this final
rule are subject to review by the Office of Management and Budget (OMB)
under section 3507(d) of the Paperwork Reduction Act of 1995.\67\ OMB's
regulations require approval of certain information collection
requirements imposed by agency rules.\68\ 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 rule will
not be penalized for failing to respond to these collections of
information unless the collections of information display a valid OMB
control number.
---------------------------------------------------------------------------
\67\ 44 U.S.C. 3507(d).
\68\ 5 CFR 1320.
---------------------------------------------------------------------------
42. The Commission estimates that the final rule, which would
retire 18 requirements of Reliability Standards without adding any new
obligations on registered entities, would result in a total reduction
in burden for industry of 42,907.44 hours. The Commission based the
burden reduction estimates on staff experience, knowledge, and
expertise.
[[Page 65213]]
Reductions Due to Final Rule in Docket Nos. RM19-16 & RM19-17
--------------------------------------------------------------------------------------------------------------------------------------------------------
Number of Average
annual Total number of number of Total burden
Reliability standard & requirement Type \69\ and number of entity responses per responses burden hours hours
entity per response
(1)....................................... (2) (1) * (2) = (3) (4) (3) * (4) =
(5)
--------------------------------------------------------------------------------------------------------------------------------------------------------
FERC-725A
--------------------------------------------------------------------------------------------------------------------------------------------------------
FAC-013-2................................. RC (12)................................... 8.33 100 26.67 2,667
INT-006-4 R3.1, R4, R5, R5.1, R5.2, R5.3, BA/TSP (169).............................. 1 169 56.3 9,514.7
R5.4, R5.5.
INT-004-3.1............................... BA (97)................................... 1 97 56.3 5,461.1
INT-010-2.1............................... BA(97).................................... 1 97 56.3 5,461.1
INT-009-2.1 R2............................ BA (97)................................... 1 97 56.3 5,461.1
MOD-020-0................................. TP/RP/DP/BA (767)......................... 1 767 14.4 11,044.8
-------------------------------------------------------------------------------------------------------------
Sub-Total for FERC-725A............... 1,239..................................... .............. 1,327 .............. 39,609.8
--------------------------------------------------------------------------------------------------------------------------------------------------------
FERC-725A(1C)
--------------------------------------------------------------------------------------------------------------------------------------------------------
TOP-001-4 R19 & R22....................... BA/TO/GO/DP (1,704)....................... .25 426 0.8 340.8
-------------------------------------------------------------------------------------------------------------
Sub-Total for FERC-725A(1C)........... 1,704..................................... .............. 426 .............. 340.8
--------------------------------------------------------------------------------------------------------------------------------------------------------
FERC-725G1
--------------------------------------------------------------------------------------------------------------------------------------------------------
PRC-004-5(i) R4........................... TO/GO/DP (1,607).......................... .41 659 4.36 2,873.24
-------------------------------------------------------------------------------------------------------------
Sub-Total for FERC-725G1.............. 1,607..................................... .............. 659 .............. 2,873.24
--------------------------------------------------------------------------------------------------------------------------------------------------------
FERC-725Z
--------------------------------------------------------------------------------------------------------------------------------------------------------
IRO-002-6 R1.............................. RC (12)................................... 1.17 14 5.97 83.6
-------------------------------------------------------------------------------------------------------------
Sub-Total for FERC-725Z............... 12........................................ .............. 14 .............. 83.6
-------------------------------------------------------------------------------------------------------------
Total Reductions Due to Final Rule .......................................... .............. 2,426 .............. 42,907.44
in RM19-16 & RM19-17.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Titles: FERC-725A, Mandatory Reliability Standards for the Bulk
Power System; FERC-725A(1C), Mandatory Reliability Standards for Bulk-
Power System: Reliability Standard TOP-001-4; FERC-725G1, Mandatory
Reliability Standards for the Bulk-Power System: Reliability Standard
PRC-004-5(i); FERC-725Z, Mandatory Reliability Standards: IRO
Reliability Standards.
---------------------------------------------------------------------------
\69\ RC=Reliability Coordinator; BA=Balancing Authority;
TSP=Transmission Service Provider; TO=Transmission Owner;
GO=Generator Owner; DP=Distribution Provider; TP=Transmission
Provider; and RP=Resource Planner. Our estimates are based on the
NERC Compliance Registry of July 17, 2020, which indicates there are
974 entities registered as GOs, 321 entities registered as TOs, 97
entities registered as BAs, 72 entities registered as TSPs, 198
entities registered as TPs312 entities registered as DPs, 160
entities registered as RPs, and 12 entities registered as RCs within
the United States.
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Action: Reductions to Existing Collections of Information FERC-
725A, FERC-725A(1C), and FERC-725Z; and Elimination of Collections of
Information, and FERC-725G1.
OMB Control Nos: 1902-0244 (FERC-725A); 1902-0298 (FERC-
725A(1C));1902-0284 (FERC-725G1); and 1902-0276 (FERC-725Z).
Respondents: Business or other for profit, and not for profit
institutions.
Frequency of Responses: On occasion (and proposed for deletion).
43. Necessity of the Information: This proceeding approves the
retirement of four Reliability Standards in their entirety and five
revised Reliability Standards, reflecting a total of 18 retired
requirements identified by NERC. The approved retirements either: (1)
Provide little or no reliability benefit; (2) are administrative in
nature or relate expressly to commercial or business practices; or (3)
are redundant with other Reliability Standards.
44. Internal review: The Commission has reviewed NERC's proposal
and determined that its action is necessary to implement section 215 of
the FPA. The Commission has assured itself, by means of its internal
review, that there is specific, objective support for the burden
reduction estimates associated with the information requirements
approved for retirement.
45. Interested persons may obtain information on the reporting
requirements by contacting the Federal Energy Regulatory Commission,
Office of the Executive Director, 888 First Street NE, Washington, DC
20426 [Attention: Ellen Brown, email: [email protected], phone:
(202) 502-8663, fax: (202) 273-0873].
46. Comments concerning the information collections and
requirements approved for retirement in this final rule and the
associated burden estimates, should be sent to the Commission in this
docket and may also be sent to the Office of Management and Budget,
Office of Information and Regulatory Affairs [Attention: Desk Officer
for the Federal Energy Regulatory Commission]. For security reasons,
comments should be sent by email to OMB at the following email address:
[email protected]. Please refer to the appropriate OMB
Control Number(s) and Docket Nos. RM19-16-000 and RM19-17-000 in your
submission.
[[Page 65214]]
IV. Regulatory Flexibility Act Certification
47. The Regulatory Flexibility Act of 1980 (RFA) \70\ generally
requires a description and analysis of rulemakings that will have
significant economic impact on a substantial number of small entities.
The RFA mandates consideration of regulatory alternatives that
accomplish the stated objectives of a rule and that minimize any
significant economic impact on a substantial number of small entities.
The Small Business Administration's Office of Size Standards develops
the numerical definition of a small business.\71\ The Small Business
Administration has established size standards, for the types of
affected entities (noted in the table above), that range from a maximum
of 250-1,000 employees for an entity and its affiliates to be
considered small.
---------------------------------------------------------------------------
\70\ 5 U.S.C. 601-612.
\71\ 13 CFR 121.101.
---------------------------------------------------------------------------
48. The Commission estimates the total industry reduction in burden
for all entities (large and small) to be 42,907.44 hours (or
approximately 18 hours (rounded) per response). The Commission believes
that this will reduce burden and cost for all affected entities.
49. Based on the information above, the Commission certifies that
the reductions will not have a significant impact on a substantial
number of small entities. Accordingly, no initial regulatory
flexibility analysis is required.
V. Environmental Analysis
50. 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.\72\ The
Commission has categorically excluded certain actions from this
requirement as not having a significant effect on the human
environment. Included in the exclusion are rules that are clarifying,
corrective, or procedural or that do not substantially change the
effect of the regulations being amended.\73\ The actions approved here
fall within this categorical exclusion in the Commission's regulations.
---------------------------------------------------------------------------
\72\ Regulations Implementing the National Environmental Policy
Act of 1969, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats.
& Regs., Regulations Preambles 1986-1990 ] 30,783 (1987).
\73\ 18 CFR 380.4(a)(2)(ii).
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VI. Document Availability
51. 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.
52. 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 excluding the last three digits of this document in
the docket number field.
53. User assistance is available for eLibrary and the Commission's
website during normal business hours from the Commission's Online
Support at (202) 502-6652 (toll free at 1-866-208-3676) or email at
[email protected], or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at
[email protected].
VII. Effective Date and Congressional Notification
54. This final rule is effective December 14, 2020. The Commission
has determined, with the concurrence of the Administrator of the Office
of Information and Regulatory Affairs of OMB, that this 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, and Government Accountability Office.
By direction of the Commission.
Issued: September 17, 2020.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
Note: the following Appendix will not appear in the Code of
Federal Regulations.
Appendix
Commenters
------------------------------------------------------------------------
Abbreviation Commenter
------------------------------------------------------------------------
NERC......................... North American Electric Reliability
Corporation.
Trade Associations........... American Public Power Association, Edison
Electric Institute, Large Public Power
Council, National Rural Electric
Cooperative Association, Transmission
Policy Study Group.
Bonneville................... Bonneville Power Administration.
WAPA......................... Western Area Power Administration.
Appelbaum.................... Jonathan Appelbaum.
------------------------------------------------------------------------
[FR Doc. 2020-20972 Filed 10-14-20; 8:45 am]
BILLING CODE 6717-01-P
