Revision to Power Marketing Policy Kerr-Philpott System of Projects, 66324-66327 [2020-23113]

Download as PDF 66324 Federal Register / Vol. 85, No. 202 / Monday, October 19, 2020 / Notices DEPARTMENT OF ENERGY Federal Energy Regulatory Commission [Project No. 3023–000] jbell on DSKJLSW7X2PROD with NOTICES Blackstone Hydro, Inc.; Notice of Authorization for Continued Project Operation On October 1, 2018, Blackstone Hydro, Inc, licensee for the Blackstone Hydroelectric Project, filed an Application for a New License pursuant to the Federal Power Act (FPA) and the Commission’s regulations thereunder. The Blackstone Hydroelectric Project is located on the Blackstone River in Providence County, Rhode Island and Worcester County, Massachusetts. There are no federal or tribal lands within the project boundary. The license for Project No. 3023 was issued for a period ending September 30, 2020. Section 15(a)(1) of the FPA, 16 U.S.C. 808(a)(1), requires the Commission, at the expiration of a license term, to issue from year-to-year an annual license to the then licensee under the terms and conditions of the prior license until a new license is issued, or the project is otherwise disposed of as provided in section 15 or any other applicable section of the FPA. If the project’s prior license waived the applicability of section 15 of the FPA, then, based on section 9(b) of the Administrative Procedure Act, 5 U.S.C. 558(c), and as set forth at 18 CFR 16.21(a), if the licensee of such project has filed an application for a subsequent license, the licensee may continue to operate the project in accordance with the terms and conditions of the license after the minor or minor part license expires, until the Commission acts on its application. If the licensee of such a project has not filed an application for a subsequent license, then it may be required, pursuant to 18 CFR 16.21(b), to continue project operations until the Commission issues someone else a license for the project or otherwise orders disposition of the project. If the project is subject to section 15 of the FPA, notice is hereby given that an annual license for Project No. 3023 is issued to Blackstone Hydro, Inc. for a period effective October 1, 2020 through September 30, 2021, or until the issuance of a new license for the project or other disposition under the FPA, whichever comes first. If issuance of a new license (or other disposition) does not take place on or before September 30, 2021, notice is hereby given that, pursuant to 18 CFR 16.18(c), an annual license under section 15(a)(1) of the FPA is renewed automatically without VerDate Sep<11>2014 18:05 Oct 16, 2020 Jkt 253001 further order or notice by the Commission, unless the Commission orders otherwise. If the project is not subject to section 15 of the FPA, notice is hereby given that Blackstone Hydro, Inc. is authorized to continue operation of the Blackstone Hydroelectric Project, until such time as the Commission acts on its application for a subsequent license. Dated: October 13, 2020. Kimberly D. Bose, Secretary. [FR Doc. 2020–23072 Filed 10–16–20; 8:45 am] BILLING CODE 6717–01–P DEPARTMENT OF ENERGY Federal Energy Regulatory Commission [Docket No. ER21–44–000] Altavista Solar, LLC; Supplemental Notice That Initial Market-Based Rate Filing Includes Request for Blanket Section 204 Authorization This is a supplemental notice in the above-referenced Altavista Solar, LLC’s application for market-based rate authority, with an accompanying rate tariff, noting that such application includes a request for blanket authorization, under 18 CFR part 34, of future issuances of securities and assumptions of liability. Any person desiring to intervene or to protest should file with the Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426, in accordance with Rules 211 and 214 of the Commission’s Rules of Practice and Procedure (18 CFR 385.211 and 385.214). Anyone filing a motion to intervene or protest must serve a copy of that document on the Applicant. Notice is hereby given that the deadline for filing protests with regard to the applicant’s request for blanket authorization, under 18 CFR part 34, of future issuances of securities and assumptions of liability, is November 2, 2020. The Commission encourages electronic submission of protests and interventions in lieu of paper, using the FERC Online links at http:// www.ferc.gov. To facilitate electronic service, persons with internet access who will eFile a document and/or be listed as a contact for an intervenor must create and validate an eRegistration account using the eRegistration link. Select the eFiling link to log on and submit the intervention or protests. Persons unable to file electronically may mail similar pleadings to the PO 00000 Frm 00025 Fmt 4703 Sfmt 4703 Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426. Hand delivered submissions in docketed proceedings should be delivered to Health and Human Services, 12225 Wilkins Avenue, Rockville, Maryland 20852. 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 (http:// ferc.gov) using the ‘‘eLibrary’’ link. Enter the docket number excluding the last three digits in the docket number field to access the document. At this time, the Commission has suspended access to the Commission’s Public Reference Room, due to the proclamation declaring a National Emergency concerning the Novel Coronavirus Disease (COVID–19), issued by the President on March 13, 2020. For assistance, contact the Federal Energy Regulatory Commission at FERCOnlineSupport@ferc.gov or call toll-free, (886) 208–3676 or TYY, (202) 502–8659. Dated: October 13, 2020. Nathaniel J. Davis, Sr., Deputy Secretary. [FR Doc. 2020–23054 Filed 10–16–20; 8:45 am] BILLING CODE 6717–01–P DEPARTMENT OF ENERGY Southeastern Power Administration Revision to Power Marketing Policy Kerr-Philpott System of Projects Southeastern Power Administration, DOE. ACTION: Notice of revision to power marketing policy. AGENCY: Southeastern Power Administration (Southeastern or SEPA) announces revision to the power marketing policy for the Kerr-Philpott System of Projects (Kerr-Philpott System). The Kerr-Philpott System power marketing policy was published on July 29, 1985, and is reflected in contracts for the sale of system power, which are maintained in Southeastern’s headquarters office. Pursuant to the Procedure for Public Participation in the Formulation of Marketing Policy, published in the Federal Register of July 6, 1978, Southeastern published on November 15, 2019, a notice of intent to revise the power marketing policy to include provisions regarding renewable energy certificates (RECs) from the KerrPhilpott System. The proposed revision SUMMARY: E:\FR\FM\19OCN1.SGM 19OCN1 jbell on DSKJLSW7X2PROD with NOTICES Federal Register / Vol. 85, No. 202 / Monday, October 19, 2020 / Notices to the Kerr-Philpott System Power Marketing Policy was published in the Federal Register on June 19, 2020. A virtual web based public information and comment forum was held on August 18, 2020, with written comments due on or before September 2, 2020. DATES: The power marketing policy revision will become effective upon publication of this notice in the Federal Register. FOR FURTHER INFORMATION CONTACT: Douglas Spencer, Engineer, Southeastern Power Administration, 1166 Athens Tech Road, Elberton, GA 30635, (706) 213–3855, Email: douglas.spencer@sepa.doe.gov. SUPPLEMENTARY INFORMATION: Background: Southeastern published a ‘‘Notice of Issuance of Final Power Marketing Policy Kerr-Philpott System of Projects’’ in the Federal Register on July 29, 1985, 50 FR 30751. The policy establishes the marketing area for system power and addresses the utilization of area utility systems for essential purposes. The policy also addresses wholesale rates, resale rates, and conservation measures, but does not address renewable energy certificates. Under Section 5 of the Flood Control Act of 1944 (16 U.S.C. 825s), Southeastern is responsible for the transmission and disposition of electric power and energy from reservoir projects operated by the U. S. Army Corps of Engineers. Furthermore, Southeastern must transmit and dispose of power and energy in such a manner as to encourage the most widespread use at the lowest possible rates to consumers consistent with sound business principles. Rate schedules are developed with regard to the recovery of the cost of producing and transmitting such electric energy. The Kerr-Philpott System consists of two projects, the John H. Kerr Project (Kerr) and the Philpott Project (Philpott). The power from the projects is currently marketed to Preference Customers located in the service areas of Dominion Energy, Duke Energy Progress, American Municipal Power, and American Electric Power. Both the Kerr and Philpott Projects are located within the regional footprint served by the regional transmission organization PJM Interconnection, L.L.C. (PJM), as are the Virginia-based Preference Customers with power allocations. Southeastern owns no transmission assets and relies on PJM transmission resources to dispose of power and energy from the projects. As such, Southeastern joined PJM in 2005. VerDate Sep<11>2014 18:05 Oct 16, 2020 Jkt 253001 As the projects are located within the PJM region and potentially satisfy Renewable Portfolio Standards in a number of states, Southeastern has subscribed to the Generation Attribute Tracking System (GATS) of PJM Environmental Information Services, Inc. The GATS provides an unbundled, certificates-based tracking system that reports certain operating attributes of electricity generators selling energy through the PJM Market Settlement System. The attributes are unbundled from the megawatt-hour of energy produced and recorded onto a certificate. As indicated in Section (2) of the GATS TERMS OF USE, dated January 22, 2020, these certificates may be used by electricity suppliers and other energy market participants to comply with relevant state policies and regulatory programs and to support voluntary ‘‘green’’ electricity markets. Under the following revision of the 1985 power marketing policy, Southeastern will distribute the GATScreated certificates to current Preference Customers with allocations of power from the Kerr-Philpott System. Public Notice and Comment Southeastern published a proposed revision in the Federal Register, 85 FR 37092, dated June 19, 2020. Southeastern held a web-based information and comment forum, on August 18, 2020. The forum was held virtually due to travel restrictions related to the COVID–19 pandemic. Southeastern received comments from Blue Ridge Power Agency, Tennessee Valley Public Power Association, and Southeastern Federal Power Customers, Inc. Public Comments Written and oral comments are summarized below. Southeastern’s responses follow each comment. Comment 1: Tennessee Valley Public Power Association requested ‘‘that prior to SEPA setting any policies, procedures or administrative controls regarding the ownership or use of Renewable Energy Credits associated with additional hydro generation as a result of Section 212 funding, that SEPA consult with and incorporate comments from the Preference Customers that authorized the Section 212 funding.’’ Response 1: TVPPA has referenced ‘‘Section 212 funding’’. ‘‘Section 212 funding’’ refers to section 212 of the Water Resources Development Act of 2000, Public Law 106–541, which amended section 216 of the Water Resources Development Act of 1996 (codified at 33 U.S.C. 2321a). The provision allows the Secretary of the PO 00000 Frm 00026 Fmt 4703 Sfmt 4703 66325 Army to accept and use funds for use in hydroelectric power project uprating provided by preference customers through contracts related to the marketing of power. Therefore, funds provided by certain preference customers may increase energy at the John H. Kerr and Philpott projects. Southeastern has considered comments of customers participating in the Section 212 customer funding program. Any increase in energy due to the Section 212 program will be distributed in accordance with this published revision of the Kerr-Philpott power marketing policy. Comment 2: Blue Ridge Power Agency members expressed appreciation they will have the choice on how to use the RECs to provide benefits for their customers. They support Southeastern’s proposed policy to distribute RECs based on existing power allocations, and to separate out energy from each generator. They indicate enabling customers to take RECs from each project is the fairest way to proceed, and allowing each customer to designate whether the RECs are transferred to a third party or directly to the customer is important. They encourage Southeastern to work aggressively on state REC registrations for each generator. Response 2: Southeastern acknowledges Blue Ridge Power Agency members’ comments regarding distribution of RECs in the Kerr-Philpott System. Southeastern continues to pursue state REC registrations for both the Kerr and Philpott projects. Comment 3: Southeastern Federal Power Customers, Inc. (SeFPC), expressed general support for the revision and addressed three areas of concern which include: (1) The revision for the Kerr-Philpott System should be clear that it will not establish controlling precedent on policies for the allocations for RECs that SEPA may adopt in the future for other marketing areas; (2) The revision should include language from the response to comments to the notice of intent to revise the power marketing policy that stated that the revision will not change the Administrator’s prior determinations regarding power allocation within the marketing area; and (3) That SEPA should further clarify ‘‘SEPA reserves the right to distribute RECs that have been declined at a later date.’’ Response 3: Southeastern acknowledges SeFPC’s comments regarding distribution of RECs to KerrPhilpott Preference Customers. Southeastern added language to the E:\FR\FM\19OCN1.SGM 19OCN1 66326 Federal Register / Vol. 85, No. 202 / Monday, October 19, 2020 / Notices Power Marketing Policy Revision to address SeFPC’s concerns. jbell on DSKJLSW7X2PROD with NOTICES Summary of Changes to the Power Marketing Policy Revision Southeastern made further changes to the Power Marketing Policy Revision as a result of comments received during the comment period and public forum. Southeastern added language stating the revision will only apply to the KerrPhilpott marketing area and Southeastern may revise other marketing policies through a public process at a later date. Southeastern added language to state the revision will not change the Administrator’s prior decisions regarding the power allocations within the Kerr-Philpott marketing area. Southeastern clarified distributions may occur outside of the quarterly distributions when preference entities have failed to submit proper distribution information or when RECs collected prior to the implementation of the policy are distributed. Southeastern amended the language regarding the initial quarterly transfer to allow for the transfer to occur in 2020. Revision to the Power Marketing Policy Southeastern revises the Power Marketing Policy for the Kerr-Philpott System to include the following additional provisions for RECs associated with hydroelectric generation. Kerr-Philpott System: The KerrPhilpott System Power Marketing Policy inclusion of procedures to distribute RECs applies only to the Kerr-Philpott marketing area. At a later date, Southeastern may revise other marketing policies through a public process. Renewable Energy Certificates (RECs): The GATS of PJM Environmental Information Services, Inc. (PJM–EIS) creates and tracks certificates reporting generation attributes, by generating unit, for each megawatt-hour (MWh) of energy produced by registered generators. PJM–EIS is a wholly-owned subsidiary of PJM Connext, L.L.C., itself a subsidiary of PJM. Both the Kerr and Philpott projects are registered generators within GATS. The RECs potentially satisfy Renewable Portfolio Standards, state policies, and other regulatory or voluntary clean energy standards in a number of states. Southeastern will proceed with state REC registrations of both the Kerr and Philpott projects. Southeastern has subscribed to GATS and has an account in which RECs are collected and tracked for each MWh of energy produced from the Kerr and Philpott projects. Within GATS, certificates can be transferred to VerDate Sep<11>2014 18:05 Oct 16, 2020 Jkt 253001 other GATS subscribers or to a thirdparty tracking system. As defined by the PJM–GATS Terms, ‘‘Certificates’’ refers to a GATS electronic record of generation data representing all of the Attributes from one MWh of electricity generation from a Generating Unit registered with the GATS tracking system. The GATS will create exactly one Certificate per MWh of generation. These certificates may be used by electricity suppliers and other energy market participants to comply with relevant state policies and regulatory programs and to support voluntary ‘‘green’’ electricity markets. Southeastern will distribute the GATS-created RECs to Preference Customers with allocations of power from the Kerr-Philpott System. The Kerr-Philpott System procedures for distributing renewable energy certificates will not change the Administrator’s prior decisions regarding the power allocations within the Kerr-Philpott marketing area. RECs Distribution: Southeastern shall maintain an account with GATS and collect RECs from the generation at the Kerr and Philpott projects. Southeastern will verify the total amount of RECs each month. Preference Customers with an allocation of power from the KerrPhilpott System are eligible to receive RECs by transfer from Southeastern’s GATS account to their GATS account or that of their agent. GATS (or a successor application) will be the transfer mechanism for all RECs related to the Kerr-Philpott System. Any further transfer, sale, use, or trade transaction would be the sole responsibility of a Preference Customer. Southeastern will summarize RECs by month for calendar year, quarterly distribution to customers through GATS. Southeastern will determine a total number of RECs to transfer to each customer based on the customer’s monthly invoices during the same three-month period. RECs will be project-specific based on the customer’s applicable contractual arrangements. Thus, customers receiving energy from Philpott will receive equivalent RECs from Philpott, and customers receiving energy from Kerr will receive equivalent RECs from Kerr. All RECs distributed by Southeastern shall be transferred within thirty days of the end of the calendar year quarter (quarterly distribution month). Each customer should submit to Southeastern, by the tenth day of a quarterly distribution month, the name, contact information, and identification number of the GATS account to which the RECs are to be transferred initially and for any quarterly distribution month in which the account for transfer PO 00000 Frm 00027 Fmt 4703 Sfmt 4703 changes. The account may be held by a third party. If the customer fails to designate an account by the tenth day of the quarterly distribution month, those RECs may not be distributed until the following quarter. Any RECs that were not transferred because a transfer account was not provided to Southeastern may be forfeited if they become non-transferrable in the GATS Terms of Use procedures, policies, or definitions of Reporting and Trading Periods, or any subsequent procedures for transfers as established. The initial quarterly transfer process in GATS will be accomplished by the thirtieth day after the publication of the final policy revision. Any balance of RECs that exist in Southeastern’s GATS account after the first quarterly transfer may also be transferred to Preference Customers according to the customer’s invoiced energy at the time of the REC creation. Southeastern reserves the right to distribute RECs to a Preference Customer at a later date for RECs declined by failure to provide a GATS account for distribution and for RECs currently existing in Southeastern’s GATS account as part of the initial implementation of the revised marketing policy in a manner consistent with the distribution method in the policy revision. Effect of Costs on Rates: No rates shall be established by Southeastern for RECs transferred to Preference Customers. Any cost to Southeastern, such as the GATS subscription, will be incorporated into marketing costs and included in recovery through the energy and capacity rates of the Kerr-Philpott System. Environmental Impact: Southeastern has reviewed the possible environmental impacts of the marketing policy revision under consideration and has concluded that, because the RECs policy would not significantly affect the quality of the human environment within the meaning of the National Environmental Policy Act of 1969, as amended, the proposed action is not a major Federal action for which preparation of an Environmental Impact Statement is required. Determination Under Executive Order 12866 Southeastern has an exemption from centralized regulatory review under Executive Order 12866; accordingly, no clearance of the Federal Register notice by the Office of Management and Budget is required. Signing Authority This document of the Department of Energy was signed on October 8, 2020, E:\FR\FM\19OCN1.SGM 19OCN1 Federal Register / Vol. 85, No. 202 / Monday, October 19, 2020 / Notices by Virgil G. Hobbs III, Administrator, Southeastern Power Administration, pursuant to delegated authority from the Secretary of Energy. That document, with the original signature and date, is maintained by DOE. For administrative purposes only, and in compliance with requirements of the Office of the Federal Register, the undersigned DOE Federal Register Liaison Officer has been authorized to sign and submit the document in electronic format for publication, as an official document of the Department of Energy. This administrative process in no way alters the legal effect of this document upon publication in the Federal Register. Signed in Washington, DC, on October 14, 2020. Treena V. Garrett, Federal Register Liaison Officer, U.S. Department of Energy. [FR Doc. 2020–23113 Filed 10–16–20; 8:45 am] BILLING CODE 6450–01–P ENVIRONMENTAL PROTECTION AGENCY [EPA–HQ–ORD–2013–0620 and EPA–HQ– OAR–2014–0128; FRL–10015–76–76–ORD] Final Integrated Science Assessment for Oxides of Nitrogen, Oxides of Sulfur, and Particulate Matter— Ecological Criteria Environmental Protection Agency (EPA). ACTION: Notice of availability. AGENCY: The Environmental Protection Agency (EPA) is announcing the availability of a final document titled, ‘‘Final Integrated Science Assessment for Oxides of Nitrogen, Oxides of Sulfur, and Particulate Matter—Ecological Criteria’’ (EPA/600/R–20/278). The document was prepared by the Center for Public Health and Environmental Assessment (CPHEA) within EPA’s Office of Research and Development (ORD) as part of the review of the secondary (welfare-based) national ambient air quality standards (NAAQS) for oxides of nitrogen, oxides of sulfur, and particulate matter. This ISA represents an update of the 2008 Integrated Science Assessment for Oxides of Nitrogen and Sulfur— Ecological Criteria (EPA/600/R–08/ 082F) and the 2009 Integrated Science Assessment for Particulate Matter (EPA/ 600/AR–08/139F). The ISA, in conjunction with additional technical and policy assessments, provides the basis for EPA’s decisions on the adequacy of the current NAAQS and the jbell on DSKJLSW7X2PROD with NOTICES SUMMARY: VerDate Sep<11>2014 18:05 Oct 16, 2020 Jkt 253001 appropriateness of possible alternative standards. DATES: The document will be available on or about October 16, 2020. ADDRESSES: The ‘‘Final Integrated Science Assessment for Oxides of Nitrogen, Oxides of Sulfur, and Particulate Matter—Ecological Criteria’’ will be available primarily via the internet on EPA’s Integrated Science Assessment for Oxides of Nitrogen, Oxides of Sulfur, and Particulate Matter page at https://www.epa.gov/isa/ integrated-science-assessment-isaoxides-nitrogen-oxides-sulfur-andparticulate-matter or the public docket at http://www.regulations.gov, Docket ID: [EPA–HQ–ORD–2013–0620 and EPA–HQ–OAR–2014–0128]. A limited number of CD–ROM copies will be available. Contact Ms. Marieka Boyd by phone: 919–541–0031; or email: boyd.marieka@epa.gov to request a CD– ROM, and please provide your name, your mailing address, and the document title, ‘‘Final Integrated Science Assessment for Oxides of Nitrogen, Oxides of Sulfur, and Particulate Matter—Ecological Criteria’’ to facilitate processing of your request. FOR FURTHER INFORMATION CONTACT: For technical information, contact Tara Greaver; phone: 919–541–2435; or email: Greaver.Tara@epa.gov. SUPPLEMENTARY INFORMATION: I. Information About the Document Section 108(a) of the Clean Air Act directs the Administrator to identify certain air pollutants, emissions of which, among other things, ‘‘cause or contribute to air pollution which may reasonably be anticipated to endanger public health or welfare’’; and to issue air quality criteria for them. The air quality criteria are to ‘‘accurately reflect the latest scientific knowledge useful in indicating the kind and extent of all identifiable effects on public health or welfare which may be expected from the presence of [a] pollutant in the ambient air. . .’’. Under section 109 of the Act, EPA is then to establish NAAQS for each pollutant for which EPA has issued criteria. Section 109(d)(1) of the Act subsequently requires periodic review and, if appropriate, revision of existing air quality criteria to reflect advances in scientific knowledge on the effects of the pollutant on public health or welfare. EPA is also required to review and, if appropriate, revise the NAAQS, based on the revised air quality criteria (for more information on the NAAQS review process, see https:// www.epa.gov/naaqs). EPA has established NAAQS for six criteria pollutants. Presently the EPA is PO 00000 Frm 00028 Fmt 4703 Sfmt 4703 66327 reviewing the secondary air quality criteria and NAAQS for oxides of nitrogen, oxides of sulfur, and particulate matter. Periodically, EPA reviews the scientific basis for these standards by preparing an Integrated Science Assessment (ISA) (formerly called an Air Quality Criteria Document). The ISA provides the scientific basis for EPA’s decisions, in conjunction with additional technical and policy assessments, on the adequacy of the current NAAQS and the appropriateness of possible alternative standards. The Clean Air Scientific Advisory Committee (CASAC), an independent science advisory committee whose review and advisory functions are mandated by Section 109(d)(2) of the Clean Air Act, is charged (among other things) with independent scientific review of the EPA’s air quality criteria. On August 21, 2013 (78 FR 53452), EPA formally initiated its current review of the air quality criteria for the ecological effects of oxides of nitrogen and oxides of sulfur, and the associated secondary (welfare-based) NAAQS, requesting the submission of recent scientific information on specified topics. Similarly, on December 3, 2014 (79 FR 71764), EPA formally initiated its current review of the air quality criteria for the particulate matter NAAQS. EPA conducted two workshops—the first on March 4–6, 2014, for oxides of nitrogen and oxides of sulfur (79 FR 8644, February 13, 2014), and the second on February 11, 2015 (79 FR 71764, December 3, 2014), for particulate matter—to gather input from invited scientific experts, both internal and external to EPA, as well as from the public, regarding key science and policy issues relevant to the review of the these secondary NAAQS. Teleconference workshops with invited scientific experts, both internal and external to EPA, were held on August 25–27, 2015 (80 FR 48316, August 12, 2015), and June 13, 2016 (81 FR 89262, May 11, 2016), to discuss initial draft materials prepared in the development of the draft ISA. These science and policy issues were incorporated into EPA’s ‘‘Draft Integrated Review Plan for the Secondary National Ambient Air Quality Standard for Oxides of Nitrogen and Oxides of Sulfur’’ as well as the ‘‘Integrated Review Plan for the National Ambient Air Quality Standards for Particulate Matter.’’ The Draft Integrated Review Plan (IRP) for oxides of nitrogen and oxides of sulfur was available for public comment (80 FR 69220, Monday, November 9, 2015) and discussion by the CASAC via publicly accessible E:\FR\FM\19OCN1.SGM 19OCN1

Agencies

[Federal Register Volume 85, Number 202 (Monday, October 19, 2020)]
[Notices]
[Pages 66324-66327]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-23113]


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DEPARTMENT OF ENERGY

Southeastern Power Administration


Revision to Power Marketing Policy Kerr-Philpott System of 
Projects

AGENCY: Southeastern Power Administration, DOE.

ACTION: Notice of revision to power marketing policy.

-----------------------------------------------------------------------

SUMMARY: Southeastern Power Administration (Southeastern or SEPA) 
announces revision to the power marketing policy for the Kerr-Philpott 
System of Projects (Kerr-Philpott System). The Kerr-Philpott System 
power marketing policy was published on July 29, 1985, and is reflected 
in contracts for the sale of system power, which are maintained in 
Southeastern's headquarters office. Pursuant to the Procedure for 
Public Participation in the Formulation of Marketing Policy, published 
in the Federal Register of July 6, 1978, Southeastern published on 
November 15, 2019, a notice of intent to revise the power marketing 
policy to include provisions regarding renewable energy certificates 
(RECs) from the Kerr-Philpott System. The proposed revision

[[Page 66325]]

to the Kerr-Philpott System Power Marketing Policy was published in the 
Federal Register on June 19, 2020. A virtual web based public 
information and comment forum was held on August 18, 2020, with written 
comments due on or before September 2, 2020.

DATES: The power marketing policy revision will become effective upon 
publication of this notice in the Federal Register.

FOR FURTHER INFORMATION CONTACT: Douglas Spencer, Engineer, 
Southeastern Power Administration, 1166 Athens Tech Road, Elberton, GA 
30635, (706) 213-3855, Email: [email protected].

SUPPLEMENTARY INFORMATION:
    Background: Southeastern published a ``Notice of Issuance of Final 
Power Marketing Policy Kerr-Philpott System of Projects'' in the 
Federal Register on July 29, 1985, 50 FR 30751. The policy establishes 
the marketing area for system power and addresses the utilization of 
area utility systems for essential purposes. The policy also addresses 
wholesale rates, resale rates, and conservation measures, but does not 
address renewable energy certificates.
    Under Section 5 of the Flood Control Act of 1944 (16 U.S.C. 825s), 
Southeastern is responsible for the transmission and disposition of 
electric power and energy from reservoir projects operated by the U. S. 
Army Corps of Engineers. Furthermore, Southeastern must transmit and 
dispose of power and energy in such a manner as to encourage the most 
widespread use at the lowest possible rates to consumers consistent 
with sound business principles. Rate schedules are developed with 
regard to the recovery of the cost of producing and transmitting such 
electric energy.
    The Kerr-Philpott System consists of two projects, the John H. Kerr 
Project (Kerr) and the Philpott Project (Philpott). The power from the 
projects is currently marketed to Preference Customers located in the 
service areas of Dominion Energy, Duke Energy Progress, American 
Municipal Power, and American Electric Power.
    Both the Kerr and Philpott Projects are located within the regional 
footprint served by the regional transmission organization PJM 
Interconnection, L.L.C. (PJM), as are the Virginia-based Preference 
Customers with power allocations. Southeastern owns no transmission 
assets and relies on PJM transmission resources to dispose of power and 
energy from the projects. As such, Southeastern joined PJM in 2005.
    As the projects are located within the PJM region and potentially 
satisfy Renewable Portfolio Standards in a number of states, 
Southeastern has subscribed to the Generation Attribute Tracking System 
(GATS) of PJM Environmental Information Services, Inc. The GATS 
provides an unbundled, certificates-based tracking system that reports 
certain operating attributes of electricity generators selling energy 
through the PJM Market Settlement System. The attributes are unbundled 
from the megawatt-hour of energy produced and recorded onto a 
certificate. As indicated in Section (2) of the GATS TERMS OF USE, 
dated January 22, 2020, these certificates may be used by electricity 
suppliers and other energy market participants to comply with relevant 
state policies and regulatory programs and to support voluntary 
``green'' electricity markets.
    Under the following revision of the 1985 power marketing policy, 
Southeastern will distribute the GATS-created certificates to current 
Preference Customers with allocations of power from the Kerr-Philpott 
System.

Public Notice and Comment

    Southeastern published a proposed revision in the Federal Register, 
85 FR 37092, dated June 19, 2020. Southeastern held a web-based 
information and comment forum, on August 18, 2020. The forum was held 
virtually due to travel restrictions related to the COVID-19 pandemic. 
Southeastern received comments from Blue Ridge Power Agency, Tennessee 
Valley Public Power Association, and Southeastern Federal Power 
Customers, Inc.

Public Comments

    Written and oral comments are summarized below. Southeastern's 
responses follow each comment.
    Comment 1: Tennessee Valley Public Power Association requested 
``that prior to SEPA setting any policies, procedures or administrative 
controls regarding the ownership or use of Renewable Energy Credits 
associated with additional hydro generation as a result of Section 212 
funding, that SEPA consult with and incorporate comments from the 
Preference Customers that authorized the Section 212 funding.''
    Response 1: TVPPA has referenced ``Section 212 funding''. ``Section 
212 funding'' refers to section 212 of the Water Resources Development 
Act of 2000, Public Law 106-541, which amended section 216 of the Water 
Resources Development Act of 1996 (codified at 33 U.S.C. 2321a). The 
provision allows the Secretary of the Army to accept and use funds for 
use in hydroelectric power project uprating provided by preference 
customers through contracts related to the marketing of power. 
Therefore, funds provided by certain preference customers may increase 
energy at the John H. Kerr and Philpott projects. Southeastern has 
considered comments of customers participating in the Section 212 
customer funding program. Any increase in energy due to the Section 212 
program will be distributed in accordance with this published revision 
of the Kerr-Philpott power marketing policy.
    Comment 2: Blue Ridge Power Agency members expressed appreciation 
they will have the choice on how to use the RECs to provide benefits 
for their customers. They support Southeastern's proposed policy to 
distribute RECs based on existing power allocations, and to separate 
out energy from each generator. They indicate enabling customers to 
take RECs from each project is the fairest way to proceed, and allowing 
each customer to designate whether the RECs are transferred to a third 
party or directly to the customer is important. They encourage 
Southeastern to work aggressively on state REC registrations for each 
generator.
    Response 2: Southeastern acknowledges Blue Ridge Power Agency 
members' comments regarding distribution of RECs in the Kerr-Philpott 
System. Southeastern continues to pursue state REC registrations for 
both the Kerr and Philpott projects.
    Comment 3: Southeastern Federal Power Customers, Inc. (SeFPC), 
expressed general support for the revision and addressed three areas of 
concern which include: (1) The revision for the Kerr-Philpott System 
should be clear that it will not establish controlling precedent on 
policies for the allocations for RECs that SEPA may adopt in the future 
for other marketing areas; (2) The revision should include language 
from the response to comments to the notice of intent to revise the 
power marketing policy that stated that the revision will not change 
the Administrator's prior determinations regarding power allocation 
within the marketing area; and (3) That SEPA should further clarify 
``SEPA reserves the right to distribute RECs that have been declined at 
a later date.''
    Response 3: Southeastern acknowledges SeFPC's comments regarding 
distribution of RECs to Kerr-Philpott Preference Customers. 
Southeastern added language to the

[[Page 66326]]

Power Marketing Policy Revision to address SeFPC's concerns.

Summary of Changes to the Power Marketing Policy Revision

    Southeastern made further changes to the Power Marketing Policy 
Revision as a result of comments received during the comment period and 
public forum. Southeastern added language stating the revision will 
only apply to the Kerr-Philpott marketing area and Southeastern may 
revise other marketing policies through a public process at a later 
date. Southeastern added language to state the revision will not change 
the Administrator's prior decisions regarding the power allocations 
within the Kerr-Philpott marketing area. Southeastern clarified 
distributions may occur outside of the quarterly distributions when 
preference entities have failed to submit proper distribution 
information or when RECs collected prior to the implementation of the 
policy are distributed. Southeastern amended the language regarding the 
initial quarterly transfer to allow for the transfer to occur in 2020.

Revision to the Power Marketing Policy

    Southeastern revises the Power Marketing Policy for the Kerr-
Philpott System to include the following additional provisions for RECs 
associated with hydroelectric generation.
    Kerr-Philpott System: The Kerr-Philpott System Power Marketing 
Policy inclusion of procedures to distribute RECs applies only to the 
Kerr-Philpott marketing area. At a later date, Southeastern may revise 
other marketing policies through a public process.
    Renewable Energy Certificates (RECs): The GATS of PJM Environmental 
Information Services, Inc. (PJM-EIS) creates and tracks certificates 
reporting generation attributes, by generating unit, for each megawatt-
hour (MWh) of energy produced by registered generators. PJM-EIS is a 
wholly-owned subsidiary of PJM Connext, L.L.C., itself a subsidiary of 
PJM. Both the Kerr and Philpott projects are registered generators 
within GATS. The RECs potentially satisfy Renewable Portfolio 
Standards, state policies, and other regulatory or voluntary clean 
energy standards in a number of states. Southeastern will proceed with 
state REC registrations of both the Kerr and Philpott projects. 
Southeastern has subscribed to GATS and has an account in which RECs 
are collected and tracked for each MWh of energy produced from the Kerr 
and Philpott projects. Within GATS, certificates can be transferred to 
other GATS subscribers or to a third-party tracking system.
    As defined by the PJM-GATS Terms, ``Certificates'' refers to a GATS 
electronic record of generation data representing all of the Attributes 
from one MWh of electricity generation from a Generating Unit 
registered with the GATS tracking system. The GATS will create exactly 
one Certificate per MWh of generation. These certificates may be used 
by electricity suppliers and other energy market participants to comply 
with relevant state policies and regulatory programs and to support 
voluntary ``green'' electricity markets.
    Southeastern will distribute the GATS-created RECs to Preference 
Customers with allocations of power from the Kerr-Philpott System. The 
Kerr-Philpott System procedures for distributing renewable energy 
certificates will not change the Administrator's prior decisions 
regarding the power allocations within the Kerr-Philpott marketing 
area.
    RECs Distribution: Southeastern shall maintain an account with GATS 
and collect RECs from the generation at the Kerr and Philpott projects. 
Southeastern will verify the total amount of RECs each month. 
Preference Customers with an allocation of power from the Kerr-Philpott 
System are eligible to receive RECs by transfer from Southeastern's 
GATS account to their GATS account or that of their agent. GATS (or a 
successor application) will be the transfer mechanism for all RECs 
related to the Kerr-Philpott System. Any further transfer, sale, use, 
or trade transaction would be the sole responsibility of a Preference 
Customer. Southeastern will summarize RECs by month for calendar year, 
quarterly distribution to customers through GATS. Southeastern will 
determine a total number of RECs to transfer to each customer based on 
the customer's monthly invoices during the same three-month period. 
RECs will be project-specific based on the customer's applicable 
contractual arrangements. Thus, customers receiving energy from 
Philpott will receive equivalent RECs from Philpott, and customers 
receiving energy from Kerr will receive equivalent RECs from Kerr.
    All RECs distributed by Southeastern shall be transferred within 
thirty days of the end of the calendar year quarter (quarterly 
distribution month). Each customer should submit to Southeastern, by 
the tenth day of a quarterly distribution month, the name, contact 
information, and identification number of the GATS account to which the 
RECs are to be transferred initially and for any quarterly distribution 
month in which the account for transfer changes. The account may be 
held by a third party. If the customer fails to designate an account by 
the tenth day of the quarterly distribution month, those RECs may not 
be distributed until the following quarter. Any RECs that were not 
transferred because a transfer account was not provided to Southeastern 
may be forfeited if they become non-transferrable in the GATS Terms of 
Use procedures, policies, or definitions of Reporting and Trading 
Periods, or any subsequent procedures for transfers as established.
    The initial quarterly transfer process in GATS will be accomplished 
by the thirtieth day after the publication of the final policy 
revision. Any balance of RECs that exist in Southeastern's GATS account 
after the first quarterly transfer may also be transferred to 
Preference Customers according to the customer's invoiced energy at the 
time of the REC creation. Southeastern reserves the right to distribute 
RECs to a Preference Customer at a later date for RECs declined by 
failure to provide a GATS account for distribution and for RECs 
currently existing in Southeastern's GATS account as part of the 
initial implementation of the revised marketing policy in a manner 
consistent with the distribution method in the policy revision.
    Effect of Costs on Rates: No rates shall be established by 
Southeastern for RECs transferred to Preference Customers. Any cost to 
Southeastern, such as the GATS subscription, will be incorporated into 
marketing costs and included in recovery through the energy and 
capacity rates of the Kerr-Philpott System.
    Environmental Impact: Southeastern has reviewed the possible 
environmental impacts of the marketing policy revision under 
consideration and has concluded that, because the RECs policy would not 
significantly affect the quality of the human environment within the 
meaning of the National Environmental Policy Act of 1969, as amended, 
the proposed action is not a major Federal action for which preparation 
of an Environmental Impact Statement is required.

Determination Under Executive Order 12866

    Southeastern has an exemption from centralized regulatory review 
under Executive Order 12866; accordingly, no clearance of the Federal 
Register notice by the Office of Management and Budget is required.

Signing Authority

    This document of the Department of Energy was signed on October 8, 
2020,

[[Page 66327]]

by Virgil G. Hobbs III, Administrator, Southeastern Power 
Administration, pursuant to delegated authority from the Secretary of 
Energy. That document, with the original signature and date, is 
maintained by DOE. For administrative purposes only, and in compliance 
with requirements of the Office of the Federal Register, the 
undersigned DOE Federal Register Liaison Officer has been authorized to 
sign and submit the document in electronic format for publication, as 
an official document of the Department of Energy. This administrative 
process in no way alters the legal effect of this document upon 
publication in the Federal Register.

    Signed in Washington, DC, on October 14, 2020.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2020-23113 Filed 10-16-20; 8:45 am]
BILLING CODE 6450-01-P