Revisions to Regulations on Electric Reliability Organization Performance Assessments, 7518-7523 [2021-01614]
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Federal Register / Vol. 86, No. 18 / Friday, January 29, 2021 / Proposed Rules
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BILLING CODE 4910–13–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
18 CFR Part 39
[Docket No. RM21–12–000]
Revisions to Regulations on Electric
Reliability Organization Performance
Assessments
Federal Energy Regulatory
Commission, Department of Energy.
ACTION: Notice of proposed rulemaking.
AGENCY:
The Federal Energy
Regulatory Commission (Commission)
proposes to amend the Commission’s
regulations to require the Commissioncertified Electric Reliability
Organization to submit assessments of
its performance every three years
instead of the current period of every
five years. The Commission also
proposes to add to the Commission’s
regulations a requirement for the
Electric Reliability Organization to
include in its performance assessment a
detailed discussion of any areas of the
Electric Reliability Organization’s
responsibilities and activities, or a
Regional Entity’s delegated functions,
beyond those required by the
Commission’s regulations, that the
Commission has identified at least 90
days prior to the expected performance
assessment submission date. Finally, the
Commission proposes formalizing the
method for the Electric Reliability
Organization and Regional Entities to
receive and respond to
recommendations by the users, owners,
and operators of the Bulk-Power
System, and other interested parties for
improvement of the Electric Reliability
Organization’s operations, activities,
oversight and procedures.
DATES: Comments are due March 1,
2021.
ADDRESSES: Comments, identified by
docket number, may be filed
electronically at https://www.ferc.gov in
acceptable native applications and
print-to-PDF, but not in scanned or
picture format. For those unable to file
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SUMMARY:
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electronically, comments may be filed
by mail to: Federal Energy Regulatory
Commission, Secretary of the
Commission, 888 First Street NE,
Washington, DC 20426. Hand-delivered
comments must be delivered to: Federal
Energy Regulatory Commission, 12225
Wilkins Avenue, Rockville, Maryland
20852. The Comment Procedures
Section of this document contains more
detailed filing procedures.
FOR FURTHER INFORMATION CONTACT:
Leigh Anne Faugust (Legal Information),
Office of the General Counsel, Federal
Energy Regulatory Commission, 888
First Street NE, Washington, DC 20426,
Telephone: (202) 502–6396.
SUPPLEMENTARY INFORMATION:
1. Pursuant to section 215 of the
Federal Power Act (FPA),1 the
Commission proposes to amend
§ 39.3(c) of the Commission’s
regulations to require the Commissioncertified Electric Reliability
Organization (ERO) to submit
assessments of its performance every
three years instead of the current period
of every five years.2 We believe that the
proposed amendment will provide
better continuity in our review of the
ERO’s operations, activities, oversight,
procedures, and evaluation of the
effectiveness of each Regional Entity in
the performance of delegated functions.
We also believe the proposed shorter
performance assessment cycle will
provide an opportunity to identify
potential improvements with regards to
ERO performance in a more timely
fashion, allow for changes to be made in
a more timely manner, and improve the
efficiency of the overall performance
assessment process.
2. Also, pursuant to section 215 of the
FPA, we propose to add paragraph (iv)
to § 39.3(c)(1) of the Commission’s
regulations to require the Commissioncertified ERO to include in its
performance assessments a detailed
discussion of any areas of the ERO’s
responsibilities and activities, or the
Regional Entities’ delegated functions,
beyond those required by § 39.3(c)(1)(i),
(ii), and (iii), that the Commission
identifies for inclusion at least 90 days
prior to the expected performance
assessment submission date.
3. Finally, we propose to amend
§ 39.3(c)(1)(ii) of the Commission’s
regulations to require the ERO to solicit
via a formal public comment period
recommendations by the users, owners,
and operators of the Bulk-Power
System, and other interested parties for
improvement of the ERO’s operations,
activities, oversight and procedures.
1 16
2 18
PO 00000
U.S.C. 824o.
CFR 39.3(c).
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I. Background
A. Section 215 of the FPA
4. Section 215 of the FPA requires the
Commission to issue regulations that,
among other things, provide for the
certification of an entity as the ERO if
it meets certain criteria.3 Specifically,
FPA section 215(c) establishes that an
ERO candidate must have the ability to
develop and enforce mandatory
Reliability Standards that provide for an
adequate level of reliability of the BulkPower System.4 The statute also
requires that an ERO candidate have
established rules that: (1) Assure
independence, while assuring fair
stakeholder representation and balanced
decision-making; (2) equitably allocate
reasonable dues, fees, and other charges;
(3) provide fair and impartial
procedures for enforcing Reliability
Standards through imposition of
penalties; (4) provide reasonable notice
and opportunity for public comment,
due process, and balance in developing
Reliability Standards and otherwise
exercising its duties; and (5) provide
appropriate steps to gain recognition in
Canada and Mexico.
5. FPA section 215(e)(4) provides that
the ERO may delegate authority to a
Regional Entity for the purpose of
proposing regional Reliability Standards
and enforcing Reliability Standards.
Regional Entities must meet the same
statutory criteria as those required for
Commission certification of an ERO,
except that more flexibility is allowed in
the composition of a Regional Entity
board of directors. The Commission
must approve a delegation agreement
between the ERO and a Regional Entity,
and the Commission is authorized to
modify such delegation.
B. Order No. 672
6. On February 3, 2006, the
Commission issued Order No. 672,
which amended the Commission’s
regulations to implement the
requirements of FPA section 215.5 In
Order No. 672, the Commission
3 16 U.S.C. 824o; (on July 20, 2006, the
Commission certified NERC as the ERO for the
continental United States under FPA section
215(c)). North American Electric Reliability Corp.,
116 FERC ¶ 61,062, order on reh’g and compliance,
117 FERC ¶ 61,126 (2006), order on compliance,
118 FERC ¶ 61,030, order on compliance, 118 FERC
¶ 61,190, order on reh’g, 119 FERC ¶ 61,046 (2007),
aff’d sub nom. Alcoa Inc. v. FERC, 564 F.3d 1342
(D.C. Cir. 2009).
4 Id. section 824o(c).
5 Rules Concerning Certification of the Electric
Reliability Organization; and Procedures for the
Establishment, Approval, and Enforcement of
Electric Reliability Standards, Order No. 672, 71 FR
8662 (Feb. 17, 2006), 114 FERC ¶ 61,104, at P 186,
order on reh’g, Order No. 672–A, 114 FERC ¶ 61,328
(2006).
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interpreted section 215 of the FPA to
require the ERO to comply with the
certification criteria in section 215(c) of
the FPA on a continuous basis.6 Further,
the Commission mandated that the ERO
submit periodic assessments of its
performance that ‘‘affirmatively
demonstrate to the Commission that [the
ERO] satisfies the statutory and
regulatory criteria for an ERO and is not
only maintaining but improving the
quality of its activities and those of the
Regional Entities to which it has
delegated such activities.’’ 7
7. In Order No. 672, the Commission
also said that the performance
assessments should employ regular and
systematic measurement and reporting
of the ERO’s performance. The specific
requirements for the performance
assessments are set out in the
Commission’s regulations in § 39.3(c)
and provide that the ERO file an
assessment of its performance three
years from the date of initial
certification, and every five years
thereafter. Section 39.3(c)(1) of the
Commission’s regulations specify that
the ERO should include in its
performance assessment: (1) An
explanation of how it satisfies the
requirements of § 39.3 (b); 8 (2)
recommendations from stakeholders on
improvement for the ERO and Regional
Entities’ performance and the ERO’s and
Regional Entities’ response to those
recommendations; 9 and (3) an
evaluation of the effectiveness of each
Regional Entity’s performance of
delegated functions.10 Section 39.3(c)(2)
of the Commission’s regulations explain
that the Commission will review the
performance assessments and may
require follow-up actions by the ERO to
comply or improve compliance with the
statutory and regulatory qualifications
for the ERO if the Commission
determines that the ERO has not
satisfied specific criteria.11
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II. Discussion
8. Pursuant to section 215 of the FPA,
we propose to amend § 39.3(c) of the
Commission’s regulations to require the
Commission-certified ERO to submit
assessments of its performance every
three years instead of the current period
of every five years.12 We also propose to
amend § 39.3(c)(1) to add a new
requirement for the ERO to include in
its performance assessment a detailed
6 Id.
PP 183, 187.
P 186.
8 18 CFR 39.3(c)(1)(i).
9 18 CFR 39.3(c)(1)(ii), (iii).
10 18 CFR 39.3(c)(1)(iii).
11 Id.
12 18 CFR 39.3(c).
7 Id.
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discussion of any areas of the EROs’
responsibilities and activities, or the
Regional Entity delegated functions,
beyond those required by § 39.3(c)(1)(i),
(ii), and (iii) that the Commission
identifies at least 90 days prior to the
expected performance assessment
submission date. For example, a
Commission-identified issue may be
communicated to the ERO through a
Commission order or the Commission’s
delegated authority to the Director of the
Office of Electric Reliability.13
9. While Order No. 672 established a
five-year period for submitting ERO
performance assessments following the
initial three-year assessment, decreasing
the periodicity to every three years
would improve the ERO’s accountability
to the public, stakeholders, and the
Commission. Our proposed reduction in
the assessment period aligns with the
ERO’s own acknowledgement that it is
‘‘facing unprecedented, rapid change in
the electric industry, which raises new
challenges to and opportunities for the
reliability and security of the Bulk
Power System.’’ 14 We agree, and find
that the Bulk-Power System is
transitioning in myriad ways through
innovation and technology at a pace
unanticipated when the Commission
originally established the five-year
performance assessment period and
identified topics for the ERO to include
in those assessments.
10. The proposed three-year
performance assessment cycle will
enhance the Commission’s oversight of
the ERO and provide an opportunity to
address issues arising with regard to
ERO performance in a more timely
fashion. We believe this will allow for
changes to be made in a more timely
manner, and improve the efficiency of
the overall performance assessment
process. A three-year performance
assessment aligns more closely with
certain ongoing NERC activities, such as
the triennial Reliability Standards and
reliability guidelines reviews. Moreover,
the reduced period between assessments
will allow better continuity in the
Commission’s review of the ERO’s
operations, activities, oversight,
procedures, and evaluation of the
effectiveness of each Regional Entity in
the performance of delegated functions.
13 See e.g., 18 CFR 375.303 (a)(2)(v) (‘‘The
Commission authorizes the Director or the
Director’s designee to . . . [d]irect the Electric
Reliability Organization, Regional Entities, or users,
owners, and operators of the Bulk-Power System
within the United States (not including Alaska and
Hawaii) to provide such information as is necessary
to implement Section 215 of the Federal Power
Act. . . .’’).
14 North American Electric Reliability Corp.,
Docket No. RR19–7–000, at 3 (July 22, 2019) (2019
Performance Assessment).
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For example, a three-year period
improves the likelihood that the NERC
staff preparing the performance
assessment, the Commission staff
reviewing the assessment, and
Commissioners would be familiar with
the performance assessment process—
thereby providing continuity and
subject matter expertise. Three years
also provides an earlier opportunity to
address new and emerging areas of
concern or recommendations for
development identified by the
Commission and stakeholders.
11. We believe that the proposed
three-year performance cycle affords a
reasonable amount of time between
performance assessments. We note that
this is the same three-year timeframe
imposed in Order No. 672 on the initial
performance assessment submitted by
the ERO in 2010. The timing also aligns
with the NERC’s Rules of Procedure
requirement of an independent audit of
NERC’s Compliance Monitoring and
Enforcement Program (CMEP) and
Organization Registration and
Certification Program.15
12. The ERO has existing internal
processes used to assess its ongoing
performance of its statutory
responsibilities, and the Regional
Entities’ ongoing performance in their
delegated activities.16 For example,
NERC files itemized annual budgets for
both its own activities and those of the
Regional Entities, thereby tracking
whether it ‘‘allocate[s] equitably
reasonable dues, fees and charges
among end users for all activities.’’ 17
The ERO uses a program alignment
process to identify, prioritize, and
resolve inconsistencies among the
15 See e.g., NERC, Rules of Procedure, sec. 406
(‘‘NERC shall provide for an independent audit of
its [CMEP] at least once every three years, or more
frequently as determined by the Board. The audit
shall be conducted by independent expert auditors
as selected by the Board’’).
16 For example, pursuant to 18 CFR 39.3 (c)(1)(i),
the ERO must include in its performance
assessment an explanation of how its Reliability
Standards program meet the requirements of
§ 39.3(b). NERC posts on its website the status of
various Reliability Standards projects, and provides
public access to all projects, including: Reliability
Standards, Standard Authorization Requests,
Periodic Reviews, and Interpretations. NERC,
Reliability Standards Under Development, https://
www.nerc.com/pa/Stand/Pages/Standards-UnderDevelopment.aspx. NERC has a formal oversight
program for functions it has delegated to the
Regional Entities. The programs include
performance metrics that NERC uses to evaluate the
Regional Entity performance from year to year, (i.e.,
more frequently than what would be necessary for
a three-year performance assessment). 2019
Performance Assessment at 10.
17 18 CFR 39.3(b)(2)(ii).
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Regional Entities.18 The ERO also issues
a stakeholder survey every other year to
measure the effectiveness of NERC and
the Regional Entities in executing
program activities.19
13. Based on the examples described
above, we believe the ERO should be
able to use these existing processes to
provide a self-assessment to the
Commission on a three-year basis rather
than every five years without imposing
an undue burden on the ERO. NERC
could leverage the existing tracking
mechanisms discussed above, as well as
the findings of its required three-year
independent audit, its internal audit
department, ongoing quarterly and
annual assessments of its CMEP and
Organization Registration and
Certification Program,20 and the
processes that lead to NERC’s annual
filings of the business plan and budgets
(and those of the Regional Entities),21 all
of which NERC already uses to regularly
report on its and the Regional Entities’
activities. For these reasons, we believe
a reduction of time from a five-year
cycle to a three-year cycle will not
impose an undue burden for NERC, the
Regional Entities, registered entities, or
other interested stakeholders.
14. Next, based on the last three
performance assessments NERC has
submitted to the Commission as the
ERO, where the Commission has
directed NERC to submit additional
information on further compliance, we
propose to revise the Commission’s
regulations governing what an ERO
must include in its performance
assessment. Specifically, we propose to
require that the Commission-certified
ERO include in its performance
assessments a detailed discussion of any
areas of the ERO’s activities and
functions, or the Regional Entities’
delegated functions, beyond those set
forth in § 39.3(c)(1)(i), (ii), and (iii), that
the Commission identifies for inclusion
at least 90 days prior to the expected
performance assessment submission
18 NERC, ERO Enterprise Program Alignment
Process, https://www.nerc.com/pa/comp/Pages/
EROEnterProAlign.aspx.
19 As required by 18 CFR 39.3(c)(1)(ii), the ERO’s
performance assessment must address ‘‘the
effectiveness of each Regional Entity,
recommendations by the [ERO], users, owners, and
operators of the Bulk-Power System, and other
interested parties for improvement of the Regional
Entity’s performance of delegated functions.’’
20 See, e.g., NERC, Compliance Monitoring and
Enforcement Program Quarterly Report, (Nov. 4,
2020), https://www.nerc.com/pa/comp/CE/
ReportsDL/Q3%202020%20
Quarterly%20CMEP%20Report.pdf.
21 See, e.g., NERC, 2021 Business Plan and Budget
Preparation Schedule, (2020), https://
www.nerc.com/gov/bot/FINANCE/Hidden%20
Documents/2021%20BPB%20Preparation%20
Schedule.pdf.
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date.22 Identifying specific areas of
interest in a formal and timely manner
prior to NERC’s submission of the
Performance Assessment may likely
result in efficiencies. For example,
identifying areas of interest NERC
should address in the filing may reduce
the need for the Commission to issue
data requests or require informational
filings afterwards. We believe the
additional information NERC will
provide in response to the identified
areas of interest will enable the
Commission to more efficiently review
the performance of the ERO’s activities
and functions, as well as oversight of
the Regional Entities’ delegated
functions. We also believe 90 days prior
to the submission of each performance
assessment provides NERC adequate
time to address any Commissionidentified topics in its performance
assessment, but we seek comment on
whether a different period of time may
be more appropriate.
15. Finally, we propose to add a
formal requirement for a public
comment period to solicit Regional
Entities, users, owners, and operators of
the Bulk-Power System, and other
interested parties for improvement of
the ERO’s operations, activities,
oversight and procedures. The intent of
the comment period is to inform the
content of the ERO’s draft performance
assessment. We anticipate that the ERO
would meet the proposed requirement
by issuing notice of a public comment
period on its website specifically
requesting that interested parties
identify areas of improvement. We
envision the solicitation of comments
would be issued separately and prior to
the posting of the draft performance
assessment. The posting should be
independent of other recurring
stakeholder surveys that may have a
more limited audience. The ERO would
then include the submitted comments,
and the ERO’s responses to such
comments, with its performance
assessment filing.
16. We believe that the proposed
amendments to our regulations will
improve our oversight of the ERO. The
proposal will better enable the
Commission to determine that the ERO
is satisfying the statutory and regulatory
criteria continuously,23 and provide the
22 As noted above, a Commission-identified issue
may be communicated to the ERO through a
Commission order or the Commission’s delegated
authority to the Director of the Office of Electric
Reliability.
23 Order No. 672 interprets the FPA to require that
the ERO to comply with the certification criteria on
an ongoing basis, and that a violation of a
certification criterion constitutes a violation of the
FPA. Order No. 672, 114 FERC ¶ 61,104 at P 184.
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opportunity for more timely
Commission and stakeholder feedback
or direction to the ERO should issues
arise. Further, consistent with Order No.
672, the shorter cycle for the ERO
performance assessment will provide
more timely Commission oversight to
assure that the ERO is ‘‘not only
maintaining but improving the quality
of its activities and those of the Regional
Entities to which it has delegated such
activities.’’ 24 We seek comments from
NERC and other interested entities on
this proposal, including on the burden
of this proposal.
III. Information Collection Statement
17. This NOPR proposes to amend the
Commission’s regulations to require the
Commission-certified ERO to submit
assessments of its performance every
three years instead of the current period
of every five years. It also proposes to
require the Commission-certified ERO to
include in its performance assessments
a detailed discussion of any areas of the
ERO’s responsibilities and activities, or
the Regional Entities’ delegated
functions, beyond those required by
§ 39.3(c)(1)(i), (ii), and (iii), that the
Commission identifies for inclusion at
least 90 days prior to the expected
performance assessment submission
date. Finally, this NOPR proposes to
formalize the ERO’s solicitation of
recommendations via a formal public
comment period from Regional Entities,
users, owners, and operators of the
Bulk-Power System, and other
interested parties for improvement of
the ERO’s operations, activities,
oversight and procedures.
18. The Paperwork Reduction Act
(PRA) 25 requires each federal agency to
seek and obtain approval by the Office
of Management and Budget (OMB)
before undertaking a collection of
information (including reporting, record
keeping, and public disclosure
requirements) directed to ten or more
persons or contained in a rule of general
applicability. OMB regulations 26
require approval of certain information
collection requirements contemplated
by proposed rules (including deletion,
revision, or implementation of new
requirements). Upon approval of a
collection of information, OMB will
assign an OMB control number and an
expiration date. Respondents subject to
the filing requirements of this proposed
rule will not be penalized for failing to
respond to the collection of information
24 Order
No. 672, 114 FERC ¶ 61,104 at P 186.
U.S.C. 3501–3521.
26 5 CFR part 1320.
25 44
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unless the collection of information
displays a valid OMB control number.
19. The information collection in this
NOPR is FERC–725, ‘‘Certification of
Electric Reliability Organization.’’ The
OMB Control Number is 1902–0225. As
required by the PRA, the collection of
information that would be revised in
this proposed rule is being submitted to
OMB for review under 44 U.S.C.
3507(d).
20. The Commission solicits
comments on the Commission’s need for
the proposed revision of the information
collection, whether the information will
have practical utility, the accuracy of
the burden estimates, ways to enhance
the quality, utility, and clarity of the
information to be collected or retained,
and any suggested methods for
minimizing respondents’ burden,
including the use of automated
information techniques. All burden
estimates are discussed in this NOPR
and in the Paperwork Reduction Act
supporting statement.
21. Interested persons may submit
questions about this information
collection by contacting Ellen Brown,
Office of the Executive Director, at
DataClearance@ferc.gov, or (202) 502–
8663. Please send comments concerning
the collection of information and the
associated burden estimates to: Office of
Information and Regulatory Affairs,
Office of Management and Budget
[Attention: Federal Energy Regulatory
Commission Desk Officer]. Due to
security concerns, comments should be
sent directly to www.reginfo.gov/public/
do/PRAMain. Comments submitted to
OMB should be sent within 60 days of
publication of this notice in the Federal
Register and refer to FERC–725 and
OMB Control No. 1902–0225.
22. Please submit to the Commission
copies of comments concerning the
collection of information and the
associated burden estimates (identified
by Docket No. RM21–12–000) by any of
the following methods:
• eFiling at Commission’s Website:
https://www.ferc.gov/docs-filing/
efiling.asp;
• U.S. Postal Service Mail: Persons
unable to file electronically may mail
similar pleadings to the Federal Energy
Regulatory Commission, 888 First Street
NE, Washington, DC 20426; or
• Effective July 1, 2020, filings not
submitted via eFiling or the U.S. Postal
Service may be delivered to: Federal
Energy Regulatory Commission, c/o
Health and Human Services, 12225
Wilkins Avenue, Rockville, Maryland
20852.
23. The following discussion
describes and analyzes the existing
collection of information associated
with 18 CFR 39.3(c) (FERC–725, OMB
Control Number 1902–0225), as it
would be modified by this proposed
rule.
• Necessity of the Information: The
information collected from the ERO or
Regional Entities under the
requirements of FERC–725 is used by
the Commission to implement the
statutory provisions of section 215 of
the FPA and implemented by the
Commission in accordance with 18 CFR
part 39.
• Public Reporting Burden: The
NOPR would result in program changes
in the ‘‘Self-Assessment’’ information
activities in FERC–725 due to the
proposed requirement to submit selfassessments every 3 years. At present,
self-assessments are required every 5
years.
24. The annualized number of
responses for each self-assessment
would be revised from 0.2 per year to
0.33 per year. As shown below, RM21–
12–000 would result in a total of 2.31
responses for self-assessments annually.
The Commission has also reduced the
number of Regional Entities from seven
to six.
25. The Commission calculates the
average annual burden and cost 27 in
accordance with data from the Bureau of
Labor Statistics. For hourly cost (for
wages and benefits), we estimate that 70
percent of the time is spent by Electrical
Engineers (code 17–2071, at $66.90/hr.),
20 percent of the time is spent by Legal
(code 23–0000, at $143.68/hr.), and 10
percent by Office and Administrative
Support (code 43–0000, at $41.34/hr.).
The weighted hourly cost (for wages and
benefits) is $79.70.
Number of
responses per
respondent
Total number
of responses
(col. C × col.
D)
Average burden
hours and cost ($)
per response
(rounded)
Estimated total
annual burden hrs.
and cost ($)
(rounded)
(col. E × col. F)
D.
E.
F.
G.
Type of respondent
Type of response
Number of
respondents
A.
B.
C.
Electric Reliability Organization.
Regional Entities ......
Self-Assessment ......
1
0.33
0.33
4,160 hrs.; $331,552
1,373 hrs.; $109,412.
Self-Assessment ......
6
0.33
1.98
4,160 hrs.; $331,552
8,237 hrs.; $656,473.
Total Burden
Hrs. and Cost.
..................................
7
........................
2.31
..................................
9,610 hrs.; $765,885.
IV. Environmental Analysis
26. 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.28 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.29 The
actions proposed here fall within this
categorical exclusion in the
Commission’s regulations.
V. Regulatory Flexibility Act
Certification
27. The Regulatory Flexibility Act of
1980 (RFA) 30 generally requires a
description and analysis of proposed
rules that will have significant
economic impact on a substantial
number of small entities.
28. By only proposing to direct NERC,
the Commission-certified ERO, to
27 The hourly cost estimates are based on wage
data from the Bureau of Labor Statistics for May
2019 (BLS, Occupational Employment Statistics
(May 2019), https://www.bls.gov/oes/current/
naics2_22.htm) and benefits data for September
2020 (BLS, Employer Costs for Employee
Compensation Summary (Dec. 17, 2020), https://
www.bls.gov/news.release/ecec.nr0.htm).
28 Regulations Implementing the National
Environmental Policy Act of 1969, Order No. 486,
52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs.
¶ 30,783 (1987) (cross-referenced at 41 FERC
¶ 61,284).
29 18 CFR 380.4(a)(2)(ii).
30 5 U.S.C 601–612.
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Federal Register / Vol. 86, No. 18 / Friday, January 29, 2021 / Proposed Rules
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increase the periodicity of its
performance assessment submission and
address identified topics, this NOPR
will not have a significant or substantial
impact on entities other than NERC. The
ERO develops and files with the
Commission for approval Reliability
Standards affecting the Bulk-Power
System, which represents: (a) A total
electricity demand of 830 gigawatts
(830,000 megawatts) and (b) more than
$1 trillion worth of assets. Therefore,
the Commission certifies that this NOPR
will not have a significant economic
impact on a substantial number of small
entities.
VI. Comment Procedures
29. The Commission invites interested
persons to submit comments on the
matters and issues proposed in this
notice to be adopted, including any
related matters or alternative proposals
that commenters may wish to discuss.
Comments are due March 1, 2021.
Comments must refer to Docket No.
RM21–12–000, and must include the
commenter’s name, the organization
they represent, if applicable, and their
address in their comments.
30. The Commission encourages
comments to be filed electronically via
the eFiling link on the Commission’s
website at https://www.ferc.gov. The
Commission accepts most standard
word processing formats. Documents
created electronically using word
processing software should be filed in
native applications or print-to-PDF
format and not in a scanned format.
Commenters filing electronically do not
need to make a paper filing.
31. Commenters that are not able to
file comments electronically must
submit an original of their comments
either by mail through the United States
Postal Service to: The Secretary of the
Commission, Federal Energy Regulatory
Commission, 888 First Street NE,
Washington, DC, 20426,31 or by any
other method of delivery, including
hand delivery, to the Federal Energy
Regulatory Commission, 12225 Wilkins
Avenue, Rockville, Maryland 20852.32
32. All comments will be placed in
the Commission’s public files and may
be viewed, printed, or downloaded
remotely as described in the Document
Availability section below. Commenters
on this proposal are not required to
serve copies of their comments on other
commenters.
VII. Document Availability
33. In addition to publishing the full
text of this document in the Federal
31 18
32 18
CFR 385.2001(a)(1)(i).
CFR 385.2001(a)(1)(ii).
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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). At this time, the
Commission has suspended access to
the Commission’s Public Reference
Room due to the President’s March 13,
2020 proclamation declaring a National
Emergency concerning the Novel
Coronavirus Disease (COVID–19).
34. 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.
35. 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.
List of Subjects in 18 CFR Part 39
Administrative practice and
procedure, Electric power, Penalties,
Reporting and recordkeeping
requirements.
By direction of the Commission.
Commissioners Chatterjee and Glick are
concurring with a joint separate statement
attached.
Issued: January 19, 2021.
Kimberly D. Bose,
Secretary.
In consideration of the foregoing, the
Commission proposes to amend part 39,
chapter I, title 18, Code of Federal
Regulations, as follows:
PART 39—RULES CONCERNING
CERTIFICATION OF THE ELECTRIC
RELIABILITY ORGANIZATION; AND
PROCEDURES FOR THE
ESTABLISHMENT, APPROVAL, AND
ENFORCEMENT OF ELECTRIC
RELIABILITY STANDARDS
1. The authority citation for part 39
continues to read as follows:
■
Authority: 16 U.S.C. 824o.
2. Amend § 39.3 by revising paragraph
(c) introductory text, paragraph (c)(ii)
and adding paragraph (iv) to read as
follows.
■
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Frm 00010
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§ 39.3 Electric Reliability Organization
certification.
*
*
*
*
*
(c) The Electric Reliability
Organization shall submit an assessment
of its performance three years from the
date of certification by the Commission,
and every three years thereafter. After
receipt of the assessment, the
Commission will establish a proceeding
with opportunity for public comment in
which it will review the performance of
the Electric Reliability Organization.
*
*
*
*
*
(ii) Recommendations, as solicited by
the Electric Reliability Organization via
a noticed public comment period, by
Regional Entities, users, owners, and
operators of the Bulk-Power System,
and other interested parties for
improvement of the Electric Reliability
Organization’s operations, activities,
oversight and procedures, and the
Electric Reliability Organization’s
response to such recommendations. . .
*
*
*
*
*
(iv) a detailed discussion of any areas
of the Electric Reliability Organizations
responsibilities and activities, or the
Regional Entity delegated functions,
beyond those required by § 39.3(c)(1)(i),
(ii), and (iii) of this section that the
Commission has identified. The
Commission will inform the Electric
Reliability Organization of any
additional performance areas to include
at least 90 days prior to the expected
performance assessment submission
date.
*
*
*
*
*
United States of America Federal
Energy Regulatory Commission
Revisions to Regulations on Electric
Reliability Organization Performance
Assessments—Docket No. RM21–12–
000
(Issued January 19, 2021)
CHATTERJEE, Commissioner, and
GLICK, Commissioner, concurring:
We support this notice of proposed
rulemaking (NOPR), which explores
potential improvements to the existing
framework for the North American
Electric Reliability Corporation, the
Commission-certified Electric
Reliability Organization (ERO), to
submit assessments of its performance.
Given the important and increasingly
complex role the ERO plays in ensuring
the reliability of the Bulk Power System,
we urge interested parties to submit
comments on the proposed reforms. To
that end, while we encourage comments
on the potential benefits of these
proposed reforms, we also encourage
interested parties to provide comments
on the potential burdens the proposed
E:\FR\FM\29JAP1.SGM
29JAP1
Federal Register / Vol. 86, No. 18 / Friday, January 29, 2021 / Proposed Rules
reforms may impose on the ERO and its
Regional Entities.
For these reasons, we respectfully
concur.
Neil Chatterjee,
Commissioner.
Richard Glick,
Commissioner.
[FR Doc. 2021–01614 Filed 1–28–21; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety
Administration
49 CFR Part 571
[Docket No. NHTSA–2020–0106]
RIN 2127–AM15
Framework for Automated Driving
System Safety; Extension of Comment
Period
National Highway Traffic
Safety Administration (NHTSA),
Department of Transportation (DOT).
ACTION: Advanced notice of proposed
rulemaking (ANPRM); extension of
comment period.
AGENCY:
In response to a request from
Venable LLC, NHTSA is announcing a
60-day extension of the comment period
on an advance notice of proposed
rulemaking (ANPRM) requesting
comment on NHTSA’s development of a
framework for Automated Driving
System (ADS) safety. The comment
period for the ANPRM was originally
scheduled to end on February 1, 2021.
It will now end on April 1, 2021.
DATES: The comment period for the
‘‘Framework for Automated Driving
System Safety’’ ANPRM, published on
December 3, 2020, at 85 FR 78058, is
extended to April 1, 2021.
ADDRESSES: Comments must refer to the
docket number above and be submitted
by one of the following methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov. Follow the
online instructions for submitting
comments.
• Mail: Docket Management Facility,
M–30, U.S. Department of
Transportation, West Building, Ground
Floor, Room W12–140, 1200 New Jersey
Avenue SE, Washington, DC 20590.
• Hand Delivery or Courier: U.S.
Department of Transportation, West
Building, Ground Floor, Room W12–
140, 1200 New Jersey Avenue SE,
Washington, DC, between 9 a.m. and 5
p.m. Eastern time, Monday through
Friday, except Federal holidays. To be
khammond on DSKJM1Z7X2PROD with PROPOSALS
SUMMARY:
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17:51 Jan 28, 2021
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sure someone is there to help you,
please call (202) 366–9332 before
coming.
• Fax: 202–493–2251.
Regardless of how you submit your
comments, you must include the docket
number identified in the heading of this
notice.
Note that all comments received,
including any personal information
provided, will be posted without change
to https://www.regulations.gov. Please
see the ‘‘Privacy Act’’ heading below.
You may call the Docket Management
Facility at 202–366–9322. For access to
the docket to read background
documents or comments received, go to
https://www.regulations.gov or the street
address listed above. To be sure
someone is there to help you, please call
(202) 366–9322 before coming. We will
continue to file relevant information in
the Docket as it becomes available.
Privacy Act: In accordance with 5
U.S.C. 553(c), DOT solicits comments
from the public to inform its decisionmaking process. DOT posts these
comments, without edit, including any
personal information the commenter
provides, to https://www.regulations.gov,
as described in the system of records
notice (DOT/ALL–14 FDMS), which can
be reviewed at https://
www.transportation.gov/privacy.
Anyone can search the electronic form
of all comments received into any of our
dockets by the name of the individual
submitting the comment (or signing the
comment, if submitted on behalf of an
association, business, labor union, etc.).
FOR FURTHER INFORMATION CONTACT: Sara
R. Bennett, Attorney-Advisor, Vehicle
Rulemaking and Harmonization, Office
of Chief Counsel, 202–366–2992, email
Sara.Bennett@dot.gov.
SUPPLEMENTARY INFORMATION: On
December 3, 2020, NHTSA published an
ANPRM to obtain public comments on
the development of a framework for
Automated Driving System (ADS) safety
(85 FR 78058). The framework would
objectively define, assess, and manage
the safety of ADS performance while
ensuring the needed flexibility to enable
further innovation. The Agency sought
specific feedback on key components
that can meet the need for motor vehicle
safety while enabling innovative
designs, in a manner consistent with
Agency authorities. The ANPRM
provided a 30-day comment period,
which closes on February 1, 2021.
On December 18, 2020, NHTSA
received a request from Venable LLP on
behalf of the Alliance for Automotive
Innovation, American Property Casualty
Insurance Association, American
Trucking Associations, Motor &
PO 00000
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Fmt 4702
Sfmt 4702
7523
Equipment Manufacturers Association,
National Automotive Dealers
Association, National Association of
Mutual Insurance Companies, SelfDriving Coalition for Safer Streets,
Truck & Engine Manufacturers
Association, and the U.S. Chamber of
Commerce, Chamber Technology
Engagement Center, (hereinafter ‘‘the
requestors’’), for a 60-day extension of
the comment period. The requestors
state that the ANPRM raises a
substantial number of technical and
policy questions that require significant
discussion and analysis on the part of
their respective members. They suggest
that an extension would offer them
enough time to consult with and seek
input from experts across their
businesses about the ‘‘many complex
issues presented in the ANPRM.’’ They
state that having additional time to
engage in such consultations would
enable them ‘‘to better ensure that the
comments they provide to NHTSA
reflect the full measure of thought and
analysis that is due for this important
proceeding.’’ The request can be found
in the docket for the ANPRM identified
in the heading of this notice.
In accordance with NHTSA’s
rulemaking procedures in 49 CFR part
553, subpart B, the Agency is granting
the request to extend the comment
period 60 days. We have determined
that the requestors have shown good
cause for an extension, and that the
extension is consistent with the public
interest (49 CFR 553.19). A 60-day
extension appropriately balances
NHTSA’s interest in providing the
public with sufficient time to comment
on the complex and novel questions
raised in the ANPRM, with its interest
in obtaining specific feedback from
stakeholders in a timely manner.
Accordingly, NHTSA is extending the
comment period until April 1, 2021.1
Authority: 49 U.S.C. 322, 30111,
30115, 30117, and 30166; delegation of
authority at 49 CFR 1.95 and 49 CFR
501.5.
James C. Owens,
Deputy Administrator.
[FR Doc. 2021–01150 Filed 1–28–21; 8:45 am]
BILLING CODE 4910–59–P
1 Readers should note that, even after the
comment closing date has passed, interested
persons are able to file comments in the docket,
which NHTSA will consider to the extent
practicable. 49 CFR 553.23. NHTSA may also
continue to file relevant information in the docket
as it becomes available. Accordingly, the Agency
recommends that readers periodically check the
docket for new material.
E:\FR\FM\29JAP1.SGM
29JAP1
]]>Agencies
[Federal Register Volume 86, Number 18 (Friday, January 29, 2021)]
[Proposed Rules]
[Pages 7518-7523]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-01614]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 39
[Docket No. RM21-12-000]
Revisions to Regulations on Electric Reliability Organization
Performance Assessments
AGENCY: Federal Energy Regulatory Commission, Department of Energy.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Federal Energy Regulatory Commission (Commission) proposes
to amend the Commission's regulations to require the Commission-
certified Electric Reliability Organization to submit assessments of
its performance every three years instead of the current period of
every five years. The Commission also proposes to add to the
Commission's regulations a requirement for the Electric Reliability
Organization to include in its performance assessment a detailed
discussion of any areas of the Electric Reliability Organization's
responsibilities and activities, or a Regional Entity's delegated
functions, beyond those required by the Commission's regulations, that
the Commission has identified at least 90 days prior to the expected
performance assessment submission date. Finally, the Commission
proposes formalizing the method for the Electric Reliability
Organization and Regional Entities to receive and respond to
recommendations by the users, owners, and operators of the Bulk-Power
System, and other interested parties for improvement of the Electric
Reliability Organization's operations, activities, oversight and
procedures.
DATES: Comments are due March 1, 2021.
ADDRESSES: Comments, identified by docket number, may be filed
electronically at https://www.ferc.gov in acceptable native applications
and print-to-PDF, but not in scanned or picture format. For those
unable to file electronically, comments may be filed by mail to:
Federal Energy Regulatory Commission, Secretary of the Commission, 888
First Street NE, Washington, DC 20426. Hand-delivered comments must be
delivered to: Federal Energy Regulatory Commission, 12225 Wilkins
Avenue, Rockville, Maryland 20852. The Comment Procedures Section of
this document contains more detailed filing procedures.
FOR FURTHER INFORMATION CONTACT: Leigh Anne Faugust (Legal
Information), Office of the General Counsel, Federal Energy Regulatory
Commission, 888 First Street NE, Washington, DC 20426, Telephone: (202)
502-6396.
SUPPLEMENTARY INFORMATION:
1. Pursuant to section 215 of the Federal Power Act (FPA),\1\ the
Commission proposes to amend Sec. 39.3(c) of the Commission's
regulations to require the Commission-certified Electric Reliability
Organization (ERO) to submit assessments of its performance every three
years instead of the current period of every five years.\2\ We believe
that the proposed amendment will provide better continuity in our
review of the ERO's operations, activities, oversight, procedures, and
evaluation of the effectiveness of each Regional Entity in the
performance of delegated functions. We also believe the proposed
shorter performance assessment cycle will provide an opportunity to
identify potential improvements with regards to ERO performance in a
more timely fashion, allow for changes to be made in a more timely
manner, and improve the efficiency of the overall performance
assessment process.
---------------------------------------------------------------------------
\1\ 16 U.S.C. 824o.
\2\ 18 CFR 39.3(c).
---------------------------------------------------------------------------
2. Also, pursuant to section 215 of the FPA, we propose to add
paragraph (iv) to Sec. 39.3(c)(1) of the Commission's regulations to
require the Commission-certified ERO to include in its performance
assessments a detailed discussion of any areas of the ERO's
responsibilities and activities, or the Regional Entities' delegated
functions, beyond those required by Sec. 39.3(c)(1)(i), (ii), and
(iii), that the Commission identifies for inclusion at least 90 days
prior to the expected performance assessment submission date.
3. Finally, we propose to amend Sec. 39.3(c)(1)(ii) of the
Commission's regulations to require the ERO to solicit via a formal
public comment period recommendations by the users, owners, and
operators of the Bulk-Power System, and other interested parties for
improvement of the ERO's operations, activities, oversight and
procedures.
I. Background
A. Section 215 of the FPA
4. Section 215 of the FPA requires the Commission to issue
regulations that, among other things, provide for the certification of
an entity as the ERO if it meets certain criteria.\3\ Specifically, FPA
section 215(c) establishes that an ERO candidate must have the ability
to develop and enforce mandatory Reliability Standards that provide for
an adequate level of reliability of the Bulk-Power System.\4\ The
statute also requires that an ERO candidate have established rules
that: (1) Assure independence, while assuring fair stakeholder
representation and balanced decision-making; (2) equitably allocate
reasonable dues, fees, and other charges; (3) provide fair and
impartial procedures for enforcing Reliability Standards through
imposition of penalties; (4) provide reasonable notice and opportunity
for public comment, due process, and balance in developing Reliability
Standards and otherwise exercising its duties; and (5) provide
appropriate steps to gain recognition in Canada and Mexico.
---------------------------------------------------------------------------
\3\ 16 U.S.C. 824o; (on July 20, 2006, the Commission certified
NERC as the ERO for the continental United States under FPA section
215(c)). North American Electric Reliability Corp., 116 FERC ]
61,062, order on reh'g and compliance, 117 FERC ] 61,126 (2006),
order on compliance, 118 FERC ] 61,030, order on compliance, 118
FERC ] 61,190, order on reh'g, 119 FERC ] 61,046 (2007), aff'd sub
nom. Alcoa Inc. v. FERC, 564 F.3d 1342 (D.C. Cir. 2009).
\4\ Id. section 824o(c).
---------------------------------------------------------------------------
5. FPA section 215(e)(4) provides that the ERO may delegate
authority to a Regional Entity for the purpose of proposing regional
Reliability Standards and enforcing Reliability Standards. Regional
Entities must meet the same statutory criteria as those required for
Commission certification of an ERO, except that more flexibility is
allowed in the composition of a Regional Entity board of directors. The
Commission must approve a delegation agreement between the ERO and a
Regional Entity, and the Commission is authorized to modify such
delegation.
B. Order No. 672
6. On February 3, 2006, the Commission issued Order No. 672, which
amended the Commission's regulations to implement the requirements of
FPA section 215.\5\ In Order No. 672, the Commission
[[Page 7519]]
interpreted section 215 of the FPA to require the ERO to comply with
the certification criteria in section 215(c) of the FPA on a continuous
basis.\6\ Further, the Commission mandated that the ERO submit periodic
assessments of its performance that ``affirmatively demonstrate to the
Commission that [the ERO] satisfies the statutory and regulatory
criteria for an ERO and is not only maintaining but improving the
quality of its activities and those of the Regional Entities to which
it has delegated such activities.'' \7\
---------------------------------------------------------------------------
\5\ Rules Concerning Certification of the Electric Reliability
Organization; and Procedures for the Establishment, Approval, and
Enforcement of Electric Reliability Standards, Order No. 672, 71 FR
8662 (Feb. 17, 2006), 114 FERC ] 61,104, at P 186, order on reh'g,
Order No. 672-A, 114 FERC ] 61,328 (2006).
\6\ Id. PP 183, 187.
\7\ Id. P 186.
---------------------------------------------------------------------------
7. In Order No. 672, the Commission also said that the performance
assessments should employ regular and systematic measurement and
reporting of the ERO's performance. The specific requirements for the
performance assessments are set out in the Commission's regulations in
Sec. 39.3(c) and provide that the ERO file an assessment of its
performance three years from the date of initial certification, and
every five years thereafter. Section 39.3(c)(1) of the Commission's
regulations specify that the ERO should include in its performance
assessment: (1) An explanation of how it satisfies the requirements of
Sec. 39.3 (b); \8\ (2) recommendations from stakeholders on
improvement for the ERO and Regional Entities' performance and the
ERO's and Regional Entities' response to those recommendations; \9\ and
(3) an evaluation of the effectiveness of each Regional Entity's
performance of delegated functions.\10\ Section 39.3(c)(2) of the
Commission's regulations explain that the Commission will review the
performance assessments and may require follow-up actions by the ERO to
comply or improve compliance with the statutory and regulatory
qualifications for the ERO if the Commission determines that the ERO
has not satisfied specific criteria.\11\
---------------------------------------------------------------------------
\8\ 18 CFR 39.3(c)(1)(i).
\9\ 18 CFR 39.3(c)(1)(ii), (iii).
\10\ 18 CFR 39.3(c)(1)(iii).
\11\ Id.
---------------------------------------------------------------------------
II. Discussion
8. Pursuant to section 215 of the FPA, we propose to amend Sec.
39.3(c) of the Commission's regulations to require the Commission-
certified ERO to submit assessments of its performance every three
years instead of the current period of every five years.\12\ We also
propose to amend Sec. 39.3(c)(1) to add a new requirement for the ERO
to include in its performance assessment a detailed discussion of any
areas of the EROs' responsibilities and activities, or the Regional
Entity delegated functions, beyond those required by Sec.
39.3(c)(1)(i), (ii), and (iii) that the Commission identifies at least
90 days prior to the expected performance assessment submission date.
For example, a Commission-identified issue may be communicated to the
ERO through a Commission order or the Commission's delegated authority
to the Director of the Office of Electric Reliability.\13\
---------------------------------------------------------------------------
\12\ 18 CFR 39.3(c).
\13\ See e.g., 18 CFR 375.303 (a)(2)(v) (``The Commission
authorizes the Director or the Director's designee to . . . [d]irect
the Electric Reliability Organization, Regional Entities, or users,
owners, and operators of the Bulk-Power System within the United
States (not including Alaska and Hawaii) to provide such information
as is necessary to implement Section 215 of the Federal Power Act. .
. .'').
---------------------------------------------------------------------------
9. While Order No. 672 established a five-year period for
submitting ERO performance assessments following the initial three-year
assessment, decreasing the periodicity to every three years would
improve the ERO's accountability to the public, stakeholders, and the
Commission. Our proposed reduction in the assessment period aligns with
the ERO's own acknowledgement that it is ``facing unprecedented, rapid
change in the electric industry, which raises new challenges to and
opportunities for the reliability and security of the Bulk Power
System.'' \14\ We agree, and find that the Bulk-Power System is
transitioning in myriad ways through innovation and technology at a
pace unanticipated when the Commission originally established the five-
year performance assessment period and identified topics for the ERO to
include in those assessments.
---------------------------------------------------------------------------
\14\ North American Electric Reliability Corp., Docket No. RR19-
7-000, at 3 (July 22, 2019) (2019 Performance Assessment).
---------------------------------------------------------------------------
10. The proposed three-year performance assessment cycle will
enhance the Commission's oversight of the ERO and provide an
opportunity to address issues arising with regard to ERO performance in
a more timely fashion. We believe this will allow for changes to be
made in a more timely manner, and improve the efficiency of the overall
performance assessment process. A three-year performance assessment
aligns more closely with certain ongoing NERC activities, such as the
triennial Reliability Standards and reliability guidelines reviews.
Moreover, the reduced period between assessments will allow better
continuity in the Commission's review of the ERO's operations,
activities, oversight, procedures, and evaluation of the effectiveness
of each Regional Entity in the performance of delegated functions. For
example, a three-year period improves the likelihood that the NERC
staff preparing the performance assessment, the Commission staff
reviewing the assessment, and Commissioners would be familiar with the
performance assessment process--thereby providing continuity and
subject matter expertise. Three years also provides an earlier
opportunity to address new and emerging areas of concern or
recommendations for development identified by the Commission and
stakeholders.
11. We believe that the proposed three-year performance cycle
affords a reasonable amount of time between performance assessments. We
note that this is the same three-year timeframe imposed in Order No.
672 on the initial performance assessment submitted by the ERO in 2010.
The timing also aligns with the NERC's Rules of Procedure requirement
of an independent audit of NERC's Compliance Monitoring and Enforcement
Program (CMEP) and Organization Registration and Certification
Program.\15\
---------------------------------------------------------------------------
\15\ See e.g., NERC, Rules of Procedure, sec. 406 (``NERC shall
provide for an independent audit of its [CMEP] at least once every
three years, or more frequently as determined by the Board. The
audit shall be conducted by independent expert auditors as selected
by the Board'').
---------------------------------------------------------------------------
12. The ERO has existing internal processes used to assess its
ongoing performance of its statutory responsibilities, and the Regional
Entities' ongoing performance in their delegated activities.\16\ For
example, NERC files itemized annual budgets for both its own activities
and those of the Regional Entities, thereby tracking whether it
``allocate[s] equitably reasonable dues, fees and charges among end
users for all activities.'' \17\ The ERO uses a program alignment
process to identify, prioritize, and resolve inconsistencies among the
[[Page 7520]]
Regional Entities.\18\ The ERO also issues a stakeholder survey every
other year to measure the effectiveness of NERC and the Regional
Entities in executing program activities.\19\
---------------------------------------------------------------------------
\16\ For example, pursuant to 18 CFR 39.3 (c)(1)(i), the ERO
must include in its performance assessment an explanation of how its
Reliability Standards program meet the requirements of Sec.
39.3(b). NERC posts on its website the status of various Reliability
Standards projects, and provides public access to all projects,
including: Reliability Standards, Standard Authorization Requests,
Periodic Reviews, and Interpretations. NERC, Reliability Standards
Under Development, https://www.nerc.com/pa/Stand/Pages/Standards-Under-Development.aspx. NERC has a formal oversight program for
functions it has delegated to the Regional Entities. The programs
include performance metrics that NERC uses to evaluate the Regional
Entity performance from year to year, (i.e., more frequently than
what would be necessary for a three-year performance assessment).
2019 Performance Assessment at 10.
\17\ 18 CFR 39.3(b)(2)(ii).
\18\ NERC, ERO Enterprise Program Alignment Process, https://www.nerc.com/pa/comp/Pages/EROEnterProAlign.aspx.
\19\ As required by 18 CFR 39.3(c)(1)(ii), the ERO's performance
assessment must address ``the effectiveness of each Regional Entity,
recommendations by the [ERO], users, owners, and operators of the
Bulk-Power System, and other interested parties for improvement of
the Regional Entity's performance of delegated functions.''
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13. Based on the examples described above, we believe the ERO
should be able to use these existing processes to provide a self-
assessment to the Commission on a three-year basis rather than every
five years without imposing an undue burden on the ERO. NERC could
leverage the existing tracking mechanisms discussed above, as well as
the findings of its required three-year independent audit, its internal
audit department, ongoing quarterly and annual assessments of its CMEP
and Organization Registration and Certification Program,\20\ and the
processes that lead to NERC's annual filings of the business plan and
budgets (and those of the Regional Entities),\21\ all of which NERC
already uses to regularly report on its and the Regional Entities'
activities. For these reasons, we believe a reduction of time from a
five-year cycle to a three-year cycle will not impose an undue burden
for NERC, the Regional Entities, registered entities, or other
interested stakeholders.
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\20\ See, e.g., NERC, Compliance Monitoring and Enforcement
Program Quarterly Report, (Nov. 4, 2020), https://www.nerc.com/pa/comp/CE/ReportsDL/Q3%202020%20Quarterly%20CMEP%20Report.pdf.
\21\ See, e.g., NERC, 2021 Business Plan and Budget Preparation
Schedule, (2020), https://www.nerc.com/gov/bot/FINANCE/Hidden%20Documents/2021%20BPB%20Preparation%20Schedule.pdf.
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14. Next, based on the last three performance assessments NERC has
submitted to the Commission as the ERO, where the Commission has
directed NERC to submit additional information on further compliance,
we propose to revise the Commission's regulations governing what an ERO
must include in its performance assessment. Specifically, we propose to
require that the Commission-certified ERO include in its performance
assessments a detailed discussion of any areas of the ERO's activities
and functions, or the Regional Entities' delegated functions, beyond
those set forth in Sec. 39.3(c)(1)(i), (ii), and (iii), that the
Commission identifies for inclusion at least 90 days prior to the
expected performance assessment submission date.\22\ Identifying
specific areas of interest in a formal and timely manner prior to
NERC's submission of the Performance Assessment may likely result in
efficiencies. For example, identifying areas of interest NERC should
address in the filing may reduce the need for the Commission to issue
data requests or require informational filings afterwards. We believe
the additional information NERC will provide in response to the
identified areas of interest will enable the Commission to more
efficiently review the performance of the ERO's activities and
functions, as well as oversight of the Regional Entities' delegated
functions. We also believe 90 days prior to the submission of each
performance assessment provides NERC adequate time to address any
Commission-identified topics in its performance assessment, but we seek
comment on whether a different period of time may be more appropriate.
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\22\ As noted above, a Commission-identified issue may be
communicated to the ERO through a Commission order or the
Commission's delegated authority to the Director of the Office of
Electric Reliability.
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15. Finally, we propose to add a formal requirement for a public
comment period to solicit Regional Entities, users, owners, and
operators of the Bulk-Power System, and other interested parties for
improvement of the ERO's operations, activities, oversight and
procedures. The intent of the comment period is to inform the content
of the ERO's draft performance assessment. We anticipate that the ERO
would meet the proposed requirement by issuing notice of a public
comment period on its website specifically requesting that interested
parties identify areas of improvement. We envision the solicitation of
comments would be issued separately and prior to the posting of the
draft performance assessment. The posting should be independent of
other recurring stakeholder surveys that may have a more limited
audience. The ERO would then include the submitted comments, and the
ERO's responses to such comments, with its performance assessment
filing.
16. We believe that the proposed amendments to our regulations will
improve our oversight of the ERO. The proposal will better enable the
Commission to determine that the ERO is satisfying the statutory and
regulatory criteria continuously,\23\ and provide the opportunity for
more timely Commission and stakeholder feedback or direction to the ERO
should issues arise. Further, consistent with Order No. 672, the
shorter cycle for the ERO performance assessment will provide more
timely Commission oversight to assure that the ERO is ``not only
maintaining but improving the quality of its activities and those of
the Regional Entities to which it has delegated such activities.'' \24\
We seek comments from NERC and other interested entities on this
proposal, including on the burden of this proposal.
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\23\ Order No. 672 interprets the FPA to require that the ERO to
comply with the certification criteria on an ongoing basis, and that
a violation of a certification criterion constitutes a violation of
the FPA. Order No. 672, 114 FERC ] 61,104 at P 184.
\24\ Order No. 672, 114 FERC ] 61,104 at P 186.
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III. Information Collection Statement
17. This NOPR proposes to amend the Commission's regulations to
require the Commission-certified ERO to submit assessments of its
performance every three years instead of the current period of every
five years. It also proposes to require the Commission-certified ERO to
include in its performance assessments a detailed discussion of any
areas of the ERO's responsibilities and activities, or the Regional
Entities' delegated functions, beyond those required by Sec.
39.3(c)(1)(i), (ii), and (iii), that the Commission identifies for
inclusion at least 90 days prior to the expected performance assessment
submission date. Finally, this NOPR proposes to formalize the ERO's
solicitation of recommendations via a formal public comment period from
Regional Entities, users, owners, and operators of the Bulk-Power
System, and other interested parties for improvement of the ERO's
operations, activities, oversight and procedures.
18. The Paperwork Reduction Act (PRA) \25\ requires each federal
agency to seek and obtain approval by the Office of Management and
Budget (OMB) before undertaking a collection of information (including
reporting, record keeping, and public disclosure requirements) directed
to ten or more persons or contained in a rule of general applicability.
OMB regulations \26\ require approval of certain information collection
requirements contemplated by proposed rules (including deletion,
revision, or implementation of new requirements). Upon approval of a
collection of information, OMB will assign an OMB control number and an
expiration date. Respondents subject to the filing requirements of this
proposed rule will not be penalized for failing to respond to the
collection of information
[[Page 7521]]
unless the collection of information displays a valid OMB control
number.
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\25\ 44 U.S.C. 3501-3521.
\26\ 5 CFR part 1320.
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19. The information collection in this NOPR is FERC-725,
``Certification of Electric Reliability Organization.'' The OMB Control
Number is 1902-0225. As required by the PRA, the collection of
information that would be revised in this proposed rule is being
submitted to OMB for review under 44 U.S.C. 3507(d).
20. The Commission solicits comments on the Commission's need for
the proposed revision of the information collection, whether the
information will have practical utility, the accuracy of the burden
estimates, ways to enhance the quality, utility, and clarity of the
information to be collected or retained, and any suggested methods for
minimizing respondents' burden, including the use of automated
information techniques. All burden estimates are discussed in this NOPR
and in the Paperwork Reduction Act supporting statement.
21. Interested persons may submit questions about this information
collection by contacting Ellen Brown, Office of the Executive Director,
at [email protected], or (202) 502-8663. Please send comments
concerning the collection of information and the associated burden
estimates to: Office of Information and Regulatory Affairs, Office of
Management and Budget [Attention: Federal Energy Regulatory Commission
Desk Officer]. Due to security concerns, comments should be sent
directly to www.reginfo.gov/public/do/PRAMain. Comments submitted to
OMB should be sent within 60 days of publication of this notice in the
Federal Register and refer to FERC-725 and OMB Control No. 1902-0225.
22. Please submit to the Commission copies of comments concerning
the collection of information and the associated burden estimates
(identified by Docket No. RM21-12-000) by any of the following methods:
eFiling at Commission's Website: https://www.ferc.gov/docs-filing/efiling.asp;
U.S. Postal Service Mail: Persons unable to file
electronically may mail similar pleadings to the Federal Energy
Regulatory Commission, 888 First Street NE, Washington, DC 20426; or
Effective July 1, 2020, filings not submitted via eFiling
or the U.S. Postal Service may be delivered to: Federal Energy
Regulatory Commission, c/o Health and Human Services, 12225 Wilkins
Avenue, Rockville, Maryland 20852.
23. The following discussion describes and analyzes the existing
collection of information associated with 18 CFR 39.3(c) (FERC-725, OMB
Control Number 1902-0225), as it would be modified by this proposed
rule.
Necessity of the Information: The information collected
from the ERO or Regional Entities under the requirements of FERC-725 is
used by the Commission to implement the statutory provisions of section
215 of the FPA and implemented by the Commission in accordance with 18
CFR part 39.
Public Reporting Burden: The NOPR would result in program
changes in the ``Self-Assessment'' information activities in FERC-725
due to the proposed requirement to submit self-assessments every 3
years. At present, self-assessments are required every 5 years.
24. The annualized number of responses for each self-assessment
would be revised from 0.2 per year to 0.33 per year. As shown below,
RM21-12-000 would result in a total of 2.31 responses for self-
assessments annually. The Commission has also reduced the number of
Regional Entities from seven to six.
25. The Commission calculates the average annual burden and cost
\27\ in accordance with data from the Bureau of Labor Statistics. For
hourly cost (for wages and benefits), we estimate that 70 percent of
the time is spent by Electrical Engineers (code 17-2071, at $66.90/
hr.), 20 percent of the time is spent by Legal (code 23-0000, at
$143.68/hr.), and 10 percent by Office and Administrative Support (code
43-0000, at $41.34/hr.). The weighted hourly cost (for wages and
benefits) is $79.70.
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\27\ The hourly cost estimates are based on wage data from the
Bureau of Labor Statistics for May 2019 (BLS, Occupational
Employment Statistics (May 2019), https://www.bls.gov/oes/current/naics2_22.htm) and benefits data for September 2020 (BLS, Employer
Costs for Employee Compensation Summary (Dec. 17, 2020), https://www.bls.gov/news.release/ecec.nr0.htm).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Estimated total
Number of Total number Average burden hours annual burden hrs.
Type of respondent Type of response Number of responses per of responses and cost ($) per and cost ($)
respondents respondent (col. C x col. response (rounded) (rounded) (col. E x
D) col. F)
A. B.................... C. D. E. F.................... G.
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Electric Reliability Organization.. Self-Assessment...... 1 0.33 0.33 4,160 hrs.; $331,552. 1,373 hrs.; $109,412.
Regional Entities.................. Self-Assessment...... 6 0.33 1.98 4,160 hrs.; $331,552. 8,237 hrs.; $656,473.
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Total Burden Hrs. and Cost..... ..................... 7 .............. 2.31 ..................... 9,610 hrs.; $765,885.
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IV. Environmental Analysis
26. 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.\28\ 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.\29\ The actions proposed here
fall within this categorical exclusion in the Commission's regulations.
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\28\ Regulations Implementing the National Environmental Policy
Act of 1969, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats.
& Regs. ] 30,783 (1987) (cross-referenced at 41 FERC ] 61,284).
\29\ 18 CFR 380.4(a)(2)(ii).
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V. Regulatory Flexibility Act Certification
27. The Regulatory Flexibility Act of 1980 (RFA) \30\ generally
requires a description and analysis of proposed rules that will have
significant economic impact on a substantial number of small entities.
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\30\ 5 U.S.C 601-612.
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28. By only proposing to direct NERC, the Commission-certified ERO,
to
[[Page 7522]]
increase the periodicity of its performance assessment submission and
address identified topics, this NOPR will not have a significant or
substantial impact on entities other than NERC. The ERO develops and
files with the Commission for approval Reliability Standards affecting
the Bulk-Power System, which represents: (a) A total electricity demand
of 830 gigawatts (830,000 megawatts) and (b) more than $1 trillion
worth of assets. Therefore, the Commission certifies that this NOPR
will not have a significant economic impact on a substantial number of
small entities.
VI. Comment Procedures
29. The Commission invites interested persons to submit comments on
the matters and issues proposed in this notice to be adopted, including
any related matters or alternative proposals that commenters may wish
to discuss. Comments are due March 1, 2021. Comments must refer to
Docket No. RM21-12-000, and must include the commenter's name, the
organization they represent, if applicable, and their address in their
comments.
30. The Commission encourages comments to be filed electronically
via the eFiling link on the Commission's website at https://www.ferc.gov. The Commission accepts most standard word processing
formats. Documents created electronically using word processing
software should be filed in native applications or print-to-PDF format
and not in a scanned format. Commenters filing electronically do not
need to make a paper filing.
31. Commenters that are not able to file comments electronically
must submit an original of their comments either by mail through the
United States Postal Service to: The Secretary of the Commission,
Federal Energy Regulatory Commission, 888 First Street NE, Washington,
DC, 20426,\31\ or by any other method of delivery, including hand
delivery, to the Federal Energy Regulatory Commission, 12225 Wilkins
Avenue, Rockville, Maryland 20852.\32\
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\31\ 18 CFR 385.2001(a)(1)(i).
\32\ 18 CFR 385.2001(a)(1)(ii).
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32. All comments will be placed in the Commission's public files
and may be viewed, printed, or downloaded remotely as described in the
Document Availability section below. Commenters on this proposal are
not required to serve copies of their comments on other commenters.
VII. Document Availability
33. 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). At
this time, the Commission has suspended access to the Commission's
Public Reference Room due to the President's March 13, 2020
proclamation declaring a National Emergency concerning the Novel
Coronavirus Disease (COVID-19).
34. 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.
35. 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].
List of Subjects in 18 CFR Part 39
Administrative practice and procedure, Electric power, Penalties,
Reporting and recordkeeping requirements.
By direction of the Commission. Commissioners Chatterjee and
Glick are concurring with a joint separate statement attached.
Issued: January 19, 2021.
Kimberly D. Bose,
Secretary.
In consideration of the foregoing, the Commission proposes to amend
part 39, chapter I, title 18, Code of Federal Regulations, as follows:
PART 39--RULES CONCERNING CERTIFICATION OF THE ELECTRIC RELIABILITY
ORGANIZATION; AND PROCEDURES FOR THE ESTABLISHMENT, APPROVAL, AND
ENFORCEMENT OF ELECTRIC RELIABILITY STANDARDS
0
1. The authority citation for part 39 continues to read as follows:
Authority: 16 U.S.C. 824o.
0
2. Amend Sec. 39.3 by revising paragraph (c) introductory text,
paragraph (c)(ii) and adding paragraph (iv) to read as follows.
Sec. 39.3 Electric Reliability Organization certification.
* * * * *
(c) The Electric Reliability Organization shall submit an
assessment of its performance three years from the date of
certification by the Commission, and every three years thereafter.
After receipt of the assessment, the Commission will establish a
proceeding with opportunity for public comment in which it will review
the performance of the Electric Reliability Organization.
* * * * *
(ii) Recommendations, as solicited by the Electric Reliability
Organization via a noticed public comment period, by Regional Entities,
users, owners, and operators of the Bulk-Power System, and other
interested parties for improvement of the Electric Reliability
Organization's operations, activities, oversight and procedures, and
the Electric Reliability Organization's response to such
recommendations. . .
* * * * *
(iv) a detailed discussion of any areas of the Electric Reliability
Organizations responsibilities and activities, or the Regional Entity
delegated functions, beyond those required by Sec. 39.3(c)(1)(i),
(ii), and (iii) of this section that the Commission has identified. The
Commission will inform the Electric Reliability Organization of any
additional performance areas to include at least 90 days prior to the
expected performance assessment submission date.
* * * * *
United States of America Federal Energy Regulatory Commission
Revisions to Regulations on Electric Reliability Organization
Performance Assessments--Docket No. RM21-12-000
(Issued January 19, 2021)
CHATTERJEE, Commissioner, and GLICK, Commissioner, concurring:
We support this notice of proposed rulemaking (NOPR), which
explores potential improvements to the existing framework for the North
American Electric Reliability Corporation, the Commission-certified
Electric Reliability Organization (ERO), to submit assessments of its
performance. Given the important and increasingly complex role the ERO
plays in ensuring the reliability of the Bulk Power System, we urge
interested parties to submit comments on the proposed reforms. To that
end, while we encourage comments on the potential benefits of these
proposed reforms, we also encourage interested parties to provide
comments on the potential burdens the proposed
[[Page 7523]]
reforms may impose on the ERO and its Regional Entities.
For these reasons, we respectfully concur.
Neil Chatterjee,
Commissioner.
Richard Glick,
Commissioner.
[FR Doc. 2021-01614 Filed 1-28-21; 8:45 am]
BILLING CODE 6717-01-P
