State Voluntary Agreements To Plan and Pay for Transmission Facilities, 33700-33703 [2021-13440]
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33700
Federal Register / Vol. 86, No. 120 / Friday, June 25, 2021 / Notices
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agreement, EONY proposes to: (1)
Continue to operate the project in a runof-river mode; (2) provide a minimum
flow in the bypassed reach of 28 cfs; 2
(3) install seasonal trashracks with 1inch spacing; (4) implement a Trashrack
Operations and Maintenance Plan, a Bat
and Eagle Protection Plan, an Invasive
Species Management Plan, and an
Impoundment Drawdown and
Cofferdam Plan; and (5) implement
several improvements to an existing
fishing platform to make it accessible to
persons with disabilities, including the
addition of an accessible parking space,
an associated access aisle and access
route from the accessible parking space
to the fishing platform, and
modifications to the railing surrounding
the fishing platform.
m. A copy of the application is
available for review via the
Commission’s website at https://
www.ferc.gov using the ‘‘eLibrary’’ link.
Enter the docket number excluding the
last three digits in the docket number
field to access the document (P–4334).
For assistance, contact FERC Online
Support. 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 FERC at
FERCOnlineSupport@ferc.gov or call
toll-free, (866) 208–3676 or (202) 502–
8659 (TTY). In addition, the public
portions of the application will be made
available during regular business hours
at two locations: (1) EONY’s Lyonsdale,
NY office located at 7659 Lyonsdale
Road, Lyons Falls, New York 13368; and
(2) Bodman Memorial Library located at
8 Aldrich Street, Philadelphia, New
York 13673.
You may also register online at https://
www.ferc.gov/docs-filing/
esubscription.asp to be notified via
email of new filings and issuances
related to this or other pending projects.
For assistance, contact FERC Online
Support.
n. Anyone may submit a protest or a
motion to intervene in accordance with
the requirements of Rules of Practice
and Procedure, 18 CFR 385.210,
385.211, and 385.214. In determining
the appropriate action to take, the
Commission will consider all protests
2 EONY determined that the proposed 28-cfs
minimum flow would not result in incremental
losses of generation compared to the current
condition because the field measurement of the
existing minimum flow was approximately 28 cfs,
which accounted for flashboard leakage and was
most likely present during the term of the existing
license.
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filed, but only those who file a motion
to intervene in accordance with the
Commission’s Rules may become a
party to the proceeding. Any protests or
motions to intervene must be received
on or before the specified deadline date
for the particular application.
All filings must (1) bear in all capital
letters the title ‘‘PROTEST’’ or
‘‘MOTION TO INTERVENE;’’ (2) set
forth in the heading the name of the
applicant and the project number of the
application to which the filing
responds; (3) furnish the name, address,
and telephone number of the person
protesting or intervening; and (4)
otherwise comply with the requirements
of 18 CFR 385.2001 through 385.2005.
Agencies may obtain copies of the
application directly from the applicant.
A copy of any protest or motion to
intervene must be served upon each
representative of the applicant specified
in the particular application.
Dated: June 21, 2021.
Kimberly D. Bose,
Secretary.
[FR Doc. 2021–13600 Filed 6–24–21; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
[Docket No. PL21–2–000]
State Voluntary Agreements To Plan
and Pay for Transmission Facilities
Federal Energy Regulatory
Commission, Department of Energy.
ACTION: Notice of policy statement.
AGENCY:
This policy statement
addresses state efforts to develop
transmission facilities through
voluntary agreements to plan and pay
for those facilities. We clarify that
Voluntary Agreements are not
categorically precluded by the Federal
Power Act or the Commission’s existing
rules and regulations.
DATES: This policy statement is effective
June 17, 2021.
FOR FURTHER INFORMATION CONTACT:
David Tobenkin (Technical
Information), Office of Energy Policy
and Innovation, (202) 502–6445,
david.tobenkin@ferc.gov
Lina Naik (Legal Information), Office of
the General Counsel, (202) 502–8882,
lina.naik@ferc.gov
Jay Sher (Technical Information), Office
of Energy Market Regulation, (202)
502–8921, jay.sher@ferc.gov
SUPPLEMENTARY INFORMATION:
SUMMARY:
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1. This policy statement addresses
state efforts to develop transmission
facilities through voluntary agreements
to plan and pay for those facilities
(Voluntary Agreements). Voluntary
Agreements include agreements among:
(1) Two or more states; (2) one or more
states and one or more public utility
transmission providers; or (3) two or
more public utility transmission
providers. We clarify that Voluntary
Agreements are not categorically
precluded by the Federal Power Act
(FPA) 1 or the Commission’s existing
rules and regulations, and encourage
interested parties considering the use of
such agreements to consult with
Commission staff. To the extent that
states, public utility transmission
providers, or other stakeholders believe
that the relevant tariffs impose barriers
to Voluntary Agreements, the
Commission is open to filings to remove
or otherwise address those barriers.
2. Developing cost-effective and
reliable transmission facilities remains a
priority of this Commission.2 Voluntary
Agreements can further those goals by,
for example, providing states with a way
to prioritize, plan, and pay for
transmission facilities that, for whatever
reason, are not being developed
pursuant to the regional transmission
planning processes required by Order
No. 1000.3 In addition, in some cases,
Voluntary Agreements may allow stateprioritized transmission facilities to be
planned and built more quickly than
would comparable facilities that are
1 16
U.S.C. 791a et seq.
Transmission Planning and Cost Allocation
by Transmission Owning and Operating Public
Utilities, Order No. 1000, 76 FR 49842 (Aug. 11,
2011), 136 FERC ¶ 61,051, at P 2 (2011), order on
reh’g and clarification, Order No. 1000–A, 77 FR
32184 (May 31, 2012), 139 FERC ¶ 61,132, order on
reh’g and clarification, Order No. 1000–B, 77 FR
64890 (Oct. 24, 2012), 141 FERC ¶ 61,044 (2012),
aff’d sub nom. S.C. Pub. Serv. Auth. v. FERC, 762
F.3d 41 (D.C. Cir. 2014) (instituting reforms to
ensure more efficient and cost-effective regional
transmission planning); see also Elec. Transmission
Incentives Pol’y Under Section 219 of the Federal
Power Act, 170 FERC ¶ 61,204, at P 31 (2020)
(Transmission Incentives NOPR) (noting ‘‘FPA
section 219(a) requires that the Commission provide
incentive-based rates for electric transmission for
the purpose of benefitting consumers by ensuring
reliability and reducing the cost of delivered power
by reducing transmission congestion’’). The
Commission noted in the Transmission Incentives
NOPR that there is a need for existing and new
transmission facilities to help facilitate integration
of a variety of types of resources. Transmission
Incentives NOPR, 170 FERC ¶ 61,204 at P 28.
3 Order No. 1000, 136 FERC ¶ 61,051 at P 146.
Order No. 1000 established rules and regulations
addressing, among other things, regional
transmission planning, interregional transmission
coordination, and cost allocation methods for new
transmission facilities. This includes requiring each
public utility transmission provider to participate
in a regional transmission planning process that
produces a regional transmission plan and complies
with certain transmission planning principles.
2 See
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planned through the regional
transmission planning process(es).
3. Nevertheless, we are concerned that
confusion regarding the relationship
between Voluntary Agreements and
Commission rules and regulations may
be deterring such agreements.
Accordingly, in this policy statement,
we clarify that neither the FPA nor the
Commission’s rules and regulations
categorically preclude Voluntary
Agreements among: (1) Two or more
states; (2) one or more states and one or
more public utility transmission
providers; or (3) two or more public
utility transmission providers to plan
and pay for new transmission facilities.
In particular, we note that Order No.
1000 allows market participants,
including states, to negotiate voluntarily
alternative cost sharing arrangements
that are distinct from the relevant
regional cost allocation method(s).4
4. As an illustration, we note that the
Commission accepted certain non-Order
No. 1000, alternative cost sharing
arrangements in the context of Order
No. 1000 compliance filings.5 In the
case of PJM, the Commission held that
it ‘‘need not find that the State
Agreement Approach and
4 See id. PP 561, 724; Order No. 1000–A, 139
FERC ¶ 61,132 at PP 728–729; see also Order No.
1000, 136 FERC ¶ 61,051 at P 209 n.189 (‘‘[W]e
strongly encourage states to participate actively in
the identification of transmission needs driven by
Public Policy Requirements. Public utility
transmission providers, for example, could rely on
committees of state regulators or, with appropriate
approval from Congress, compacts between
interested states to identify transmission needs
driven by Public Policy Requirements for the public
utility transmission providers to evaluate in the
transmission planning process.’’). While we focus
here on Voluntary Agreements as a potential tool
for states to advance state policy goals, the policy
statement does not alter market participants’ ability
to pursue such arrangements absent state
involvement.
5 For example, the Commission accepted PJM
Interconnection, L.L.C.’s (PJM) State Agreement
Approach to transmission planning, which is a
transmission planning and cost allocation
mechanism supplementary to PJM’s Order No. 1000
regional transmission planning process. Through
the State Agreement Approach, one or more state
governmental entities authorized by their respective
states, individually or jointly, may agree voluntarily
to be responsible for the allocation of all costs of
a proposed transmission facility that addresses state
public policy requirements identified or accepted
by the relevant state(s) in the PJM region. See PJM
Interconnection, L.L.C., 142 FERC ¶ 61,214, at PP
142–143 (2013), order on reh’g and compliance, 147
FERC ¶ 61,128, at P 92 (2014); PJM, Intra-PJM
Tariffs, Operating Agreement, sched. 6, section
1.5.9(a) (State Agreement Approach) (26.0.0).
Similarly, ISO New England Inc.’s (ISO–NE) tariff
includes a voluntary process that enables the New
England States Committee on Electricity (NESCOE)
and state public utility regulators to plan and pay
for transmission facilities. See ISO New England
Inc., 143 FERC ¶ 61,150, at P 121 (2013); ISO–NE,
ISO New England Inc. Transmission, Markets and
Services Tariff, sched. 12, section B.6 (Public Policy
Transmission Upgrade Costs) (7.0.0).
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corresponding cost allocation method
comply with Order No. 1000.’’ 6
Specifically, with regard to PJM’s State
Agreement Approach, the Commission
found the approach supplemented and
did ‘‘not conflict or otherwise replace’’
PJM’s Order No. 1000 process to
consider transmission needs driven by
public policy requirements.7
5. More recently, the Commission
approved a study agreement that
initiated a Voluntary Agreement process
in PJM. There, the New Jersey Board of
Public Utilities (New Jersey Board),
acting pursuant to PJM’s State
Agreement Approach, issued an order
formally requesting that PJM open a
competitive proposal window to solicit
proposals for transmission facilities to
expand the PJM transmission system
and to identify system improvements to
interconnect and provide for the
deliverability of 7,500 MW of offshore
wind generation into New Jersey by
2035. The New Jersey Board and PJM
entered into a study agreement directing
PJM to solicit proposals for possible
transmission facilities and analyze them
to determine the more efficient or costeffective enhancement or expansion of
transmission facilities to meet New
Jersey’s offshore wind goals.8 The New
Jersey Board explained that this type of
collaborative approach to transmission
planning will help ensure that the highvoltage transmission system
accommodates state clean energy
policies and represents a type of statefederal collaboration consistent with
Commission rules and regulations.9
6. To the extent that states or public
utility transmission providers believe
there are barriers to Voluntary
Agreements in Commissionjurisdictional tariffs or other
agreements, we encourage them to
identify those barriers and, as necessary,
consider making filings before this
Commission to address those barriers.
Commission staff is available to consult
on these issues as states, public utility
transmission providers, and other
stakeholders consider addressing such
barriers and the topic of Voluntary
Agreements more generally. We
encourage relevant parties to contact
Commission staff regarding all potential
Voluntary Agreements.
I. Document Availability
7. In addition to publishing the full
text of this document in the Federal
Register, the Commission provides all
6 PJM Interconnection, L.L.C., 142 FERC ¶ 61,214
at P 142.
7 Id.
8 PJM Interconnection, L.L.C., 174 FERC ¶ 61,090
(2021).
9 Id. P 10.
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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 proclamation
declaring a National Emergency
concerning the Novel Coronavirus
Disease (COVID–19), issued by the
President on March 13, 2020.
8. 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.
9. 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.
By direction of the Commission.
Commissioner Chatterjee is not
participating.
Commissioner Danly is concurring
with a separate statement attached.
Commissioner Christie is concurring
with a separate statement attached.
Issued: June 17, 2021.
Debbie-Anne A. Reese,
Deputy Secretary.
Department of Energy
Federal Energy Regulatory Commission
State Voluntary Agreements To Plan
and Pay for Transmission Facilities
PL21–2–000
DANLY, Commissioner, concurring:
1. I concur in the issuance of this
policy statement on state voluntary
agreements to plan and pay for
transmission facilities. I do not know
what it accomplishes, but we are not
‘‘categorically precluded’’ from issuing
it, and if there is a chance that it can
help critical transmission infrastructure
to be built, then I see no reason to
oppose it.
2. The policy states that ‘‘[W]e are
concerned that confusion regarding the
relationship between Voluntary
Agreements and Commission rules and
regulations may be deterring [Voluntary]
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agreements.’’ 1 We do not cite any
examples of such confusion, but—who
knows—it may well exist.
3. To attempt to dispel this possible
confusion, we ‘‘clarify that Voluntary
Agreements are not categorically
precluded by the Federal Power Act
(FPA) 2 or the Commission’s existing
rules and regulations.’’ 3 This amounts
to a declaration that the FPA and
existing rules and regulations do not
obviously prohibit all Voluntary
Agreements—I have no quarrel with
that. But I do believe it necessary to
remind everyone that each Voluntary
Agreement must still individually pass
muster under our statute and
regulations.
4. The actual policy in our statement
is an invitation:
To the extent that states or public
utility transmission providers believe
there are barriers to Voluntary
Agreements in Commissionjurisdictional tariffs or other
agreements, we encourage them to
identify those barriers and, as necessary,
consider making filings before this
Commission to address those barriers.4
5. We do not need a policy statement
to invite filings. But there is no harm in
it. I also invite and welcome filings
before the Commission so that we can
ensure that critical transmission, and
critical natural gas pipelines, and other
critical infrastructure, can obtain the
approvals and regulatory certainty they
require in order to be built.
For these reasons, I respectfully
concur.
James P. Danly,
Commissioner.
Department of Energy
Federal Energy Regulatory Commission
State Voluntary Agreements To Plan
and Pay for Transmission Facilities
Docket No. PL21–2–000
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CHRISTIE, Commissioner, concurring:
1. I concur and write separately to add
the following.
2. Today’s Policy Statement 1
reaffirms that voluntary agreements
among states to promote transmission
development to meet state public
policies are not categorically precluded
by Commission rules and regulations.
Order No. 1000 made clear that states
1 State Voluntary Agreements to Plan and Pay for
Transmission Facilities, 175 FERC ¶ 61,225, at P 3
(2021) (Policy Statement).
2 16 U.S.C. 791a et seq.
3 Policy Statement, 175 FERC ¶ 61,225 at P 1.
4 Id. P 6.
1 State Voluntary Agreements to Plan and Pay for
Transmission Facilities, 175 FERC ¶ 61,225 (2021)
(Policy Statement).
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voluntarily could negotiate alternative
cost sharing arrangements that are
distinct from the relevant regional cost
allocation method 2 and that order
highlighted a vehicle for multiple states
to cooperate, interstate compacts.3 As
the Policy Statement notes, the
Commission has accepted certain
alternative cost sharing arrangements in
the context of Order No. 1000
compliance filings.4 I would note that
voluntary agreements are open to all
states without regard to whether they
participate in Regional Transmission
Organizations (RTOs) or Independent
System Operators (ISOs) 5 and they need
not be limited in purpose to
transmission only. Relevant history
illustrates.
3. RTOs/ISOs 6 were established more
than two decades ago during the
‘‘restructuring’’ era that saw about half
the states initially adopt some version of
policies requiring their verticallyintegrated utilities to divest or at least
‘‘functionally separate’’ their generating
assets, which were then supposed to
compete on price in RTO/ISO markets
with independent power producers
(‘‘IPPs,’’ sometimes called ‘‘NUGS’’ for
non-utility generators—the acronyms
float like confetti in this business).7
2 See
Policy Statement at PP 3–4, nn.4–5.
id. at n.4. Interstate compacts among states
must be approved by Congress. U.S. Const. art.1,
section 10, cl. 3.
4 Policy Statement at n.5 (citing PJM’s State
Agreement Approach as an example of a vehicle by
which a state or states may voluntarily pursue
transmission projects to fulfill their own individual
public policies and bear the costs of such policydriven projects themselves.).
5 Technically speaking, state-regulated utilities
participate in RTOs/ISOs, subject to state law.
6 See Regional Transmission Organizations, Order
No. 2000, FERC Stats. & Regs. ¶ 31,089 (1999)
(cross-referenced at 89 FERC ¶ 61,285), order on
reh’g, Order No. 2000–A, FERC Stats. & Regs.
¶ 31,092 (2000) (cross-referenced at 90 FERC
¶ 61,201), aff’d sub nom. Pub. Util. Dist. No. 1 of
Snohomish Cty. v. FERC, 272 F.3d 607 (D.C. Cir.
2001). Order No. 2000 was issued in 1999 and
established criteria for RTOs/ISOs.
7 The restructuring era was short-lived. Several
states subsequently reversed their earlier decisions
and returned to some form of vertical integration.
See Tyson Slocum, The Failure of Electricity
Deregulation: History, Status and Needed Reforms,
Public Citizen’s Energy Program, March 2007, at 5;
see, e.g., Ch. 933, 2007 Va. Acts of Assembly (April
4, 2007). Restructuring was sometimes inaccurately
called ‘‘deregulation,’’ which implied a move from
highly structured cost-of-service regulation to true
free markets in power supply, but it was typically
more a swap of one complicated regulatory
construct for another one just as vulnerable to rentseeking. See, e.g., Severin Borenstein and James
Bushnell, The U.S. Electricity Industry after 20
Years of Restructuring, National Bureau of
Economic Research, April 2015, at Abstract (‘‘We
argue that the greatest political motivation for
restructuring was rent shifting, not efficiency
improvements, and that this explanation is
supported by observed waxing and waning of
political enthusiasm for electricity reform.’’); see
also id. at 1.
3 See
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4. Importantly, the states which chose
to participate in RTO/ISO markets
during the restructuring era shared a
general consensus that the purpose of
RTOs/ISOs was to plan the regional
transmission necessary to promote
reliability at the least-cost to consumers
and to operate energy and capacity
markets to provide consumers with
least-cost power on a nondiscriminatory basis, i.e., without regard
to the source of the electrons
(sometimes called ‘‘economic
dispatch’’). Federal regulation reflected
this consensus about the purpose of
RTOs/ISOs.8
5. That consensus no longer exists at
either the state or federal levels. The
past several years have seen an
increasing divergence of public policies
in states that are members of multi-state
RTOs/ISOs, over such fundamental
issues as mandated resource mixes,
compensation in capacity markets,
transmission planning criteria and cost
allocation, and carbon taxes.9 The
disappearance of the original consensus
about the purpose of RTO/ISO markets
has serious implications across a range
of issues, but the adoption of this Policy
Statement by the Commission offers a
good time to emphasize that states that
wish to cooperate with other states
which share similar public-policy
goals—whether environmental,
reliability or economic—have options
for achieving regional benefits outside
the context of RTO/ISO participation.
6. In particular, I would point out that
while this Policy Statement emphasizes
the potential availability of voluntary
agreements among states to promote
interstate transmission development,
voluntary state agreements may also be
available for other purposes. Before the
restructuring era, many state-regulated
utilities participated in multi-state
power pools 10 designed to support
reliability by wheeling power from state
to state when needed to avoid load
shedding, as well as facilitating bilateral
8 The Energy Policy Act of 2005 provided a
definition of economic dispatch: as ‘‘the operation
of generation facilities to produce energy at the
lowest cost to reliably serve consumers, recognizing
any operational limits of generation and
transmission facilities.’’ Energy Policy Act of 2005
(EPAct 2005), Public Law 109–58, 1234(b), 119 Stat.
594, 960 (2005) (codified at 42 U.S.C. 16432(b))
(emphasis added).
9 This divergence did not happen yesterday, but
has been building. One commentator wrote ten
years ago that ‘‘. . . state legislation and regulatory
choices continue to push the electricity industries
of the various states along vastly different paths.’’
Ari Peskoe, A Challenge for Federalism: Achieving
National Goals in the Electricity Industry, 18 Mo.
Envtl. L. & Pol’y Rev. 209, 211 (2011) (‘‘Peskoe’’)
(emphasis added).
10 For over half a century, PJM was a power pool.
See https://pjm.com/about-pjm/who-we-are/pjmhistory.
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Federal Register / Vol. 86, No. 120 / Friday, June 25, 2021 / Notices
sales of excess power.11 These sales
would benefit customers of the selling
utility, when booked as a customer
credit for off-system sales, and benefit
customers of the purchasing utility
when booked in the ‘‘fuel factor’’ at cost,
with no return on equity (ROE) applied.
7. Options such as these are still
available. Through the use of interstate
compacts, enabling legislation 12 could
create multi-state entities that can plan
transmission projects—as this Policy
Statement encourages—but such entities
also could be designed to function as
modern, innovative versions of power
pools aligned with the member states’
public policies as to resource adequacy
and preferences. The enabling
legislation could also ensure a sufficient
state role in the governance to ensure
that the authority was used only in
accordance with member-state
policies.13
8. States sharing similar public
policies which desire to collaborate
with each other to obtain the benefits of
regional cooperation have innovative
options to explore and consider whether
they participate in an RTO/ISO or do
not. The adoption of this Policy
Statement is a good time to emphasize
that opportunity.
For these reasons, I respectfully
concur.
Mark C. Christie,
Commissioner.
[FR Doc. 2021–13440 Filed 6–24–21; 8:45 am]
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BILLING CODE 6717–01–P
11 See generally Peskoe at 223–24. Any
application to this Commission to establish a power
pool or other similar arrangement will, of course,
come with its own specific evidentiary record and
will be considered individually under applicable
laws at the time.
12 Power pools were generally regulated by the
Federal Power Commission, and later by FERC. See,
e.g., id. Congress could, however, through enabling
legislation, grant various regulatory powers to the
requesting states which seek to participate in a
power pool arrangement. For example, Congress
could include in such grant of authority an explicit
power to apply a carbon tax to wholesale
transactions in a power pool if such power was
requested by the member states, avoiding the many
questions attendant to whether RTOs/ISOs
themselves have such power. See Carbon Pricing in
Organized Wholesale Electricity Markets, 175 FERC
¶ 61,036 (2021) (Christie, Comm’r concurring in
part and dissenting in part at PP 12–14, 17–24
(available at https://www.ferc.gov/news-events/
news/item-e-2-commissioner-mark-c-christieconcurring-part-and-dissenting-part)).
13 For an example of such a broad grant of power
to the states, Congress in the Energy Policy Act of
2005 allowed three or more contiguous states to
enter into a compact, subject to the approval by
Congress, to form their own regional transmission
siting entities that would have siting authority for
those states. EPAct 2005, Public Law 109–58,
section 1221(i), 119 Stat. 594, 950 (2005) (codified
at 16 U.S.C. 824p(i)).
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ENVIRONMENTAL PROTECTION
AGENCY
[FRL–10025–03–OP]
Request for Nominations of
Candidates for the Clean Air Scientific
Advisory Committee (CASAC)
Particulate Matter (PM) Panel
Environmental Protection
Agency (EPA).
ACTION: Notice.
AGENCY:
The Environmental Protection
Agency (EPA) Science Advisory Board
(SAB) Staff Office requests public
nominations of scientific experts for the
CASAC PM Panel. This panel will
provide advice through the chartered
CASAC on updates to the science and
policy assessments supporting the
agency’s reconsideration of the
December 2020 decision to retain the
PM National Ambient Air Quality
Standards (NAAQS).
DATES: Nominations should be
submitted by July 16, 2021.
FOR FURTHER INFORMATION CONTACT: Any
member of the public wishing further
information regarding this Notice and
Request for Nominations may contact
Mr. Aaron Yeow, Designated Federal
Officer (DFO), SAB Staff Office, by
telephone/voice mail at (202) 564–2050
or via email at yeow.aaron@epa.gov.
General information concerning the
CASAC can be found on the following
website: https://epa.gov/casac.
SUPPLEMENTARY INFORMATION:
Background: The CASAC was
established pursuant to the Clean Air
Act (CAA) Amendments of 1977,
codified at 42 U.S.C. 7409(d)(2), to
review air quality criteria and NAAQS
and recommend to the EPA
Administrator any new NAAQS and
revisions of existing criteria and
NAAQS as may be appropriate. The
CASAC shall also: Advise the EPA
Administrator of areas in which
additional knowledge is required to
appraise the adequacy and basis of
existing, new, or revised NAAQS;
describe the research efforts necessary
to provide the required information;
advise the EPA Administrator on the
relative contribution to air pollution
concentrations of natural as well as
anthropogenic activity; and advise the
EPA Administrator of any adverse
public health, welfare, social, economic,
or energy effects which may result from
various strategies for attainment and
maintenance of such NAAQS. As
amended, 5 U.S.C., App. Section
109(d)(1) of the Clean Air Act (CAA)
requires that EPA carry out a periodic
review and revision, as appropriate, of
SUMMARY:
PO 00000
Frm 00071
Fmt 4703
Sfmt 4703
33703
the air quality criteria and the NAAQS
for the six ‘‘criteria’’ air pollutants,
including PM. The ecological effects of
PM will be covered as part of the
ongoing review of the secondary
NAAQS for oxides of nitrogen, oxides of
sulfur, and PM.
The EPA Administrator recently
announced his decision to reconsider
the December 2020 decision to retain
the particulate matter (PM) National
Ambient Air Quality Standards
(NAAQS). These standards were last
revised in 2012. EPA is reconsidering
the 2020 decision because available
scientific evidence and technical
information suggests that the current
standards may not be adequate to
protect public health and welfare. EPA
has requested that CASAC review
updates to the science and policy
assessments that will supplement the
existing record. The CASAC PM Panel
will provide advice through the
Chartered CASAC.
The CASAC is a Federal advisory
committee chartered under the Federal
Advisory Committee Act (FACA). As a
Federal Advisory Committee, the
CASAC conducts business in
accordance with the Federal Advisory
Committee Act (FACA) (5 U.S.C. App.
2) and related regulations. The CASAC
and the CASAC PM Panel will comply
with the provisions of FACA and all
appropriate SAB Staff Office procedural
policies.
Request for Nominations: The SAB
Staff Office is seeking nominations of
nationally and internationally
recognized scientists with demonstrated
expertise and research in the field of air
pollution related to criteria pollutants.
For the CASAC PM Panel, experts are
being sought in the following fields,
especially with respect to PM: Air
quality and climate responses,
atmospheric science and chemistry,
toxicology, controlled human exposure
studies, epidemiology, biostatistics,
exposure assessment/modeling, risk
assessment/modeling, and visibility
impairment.
Process and Deadline for Submitting
Nominations: Any interested person or
organization may nominate qualified
individuals in the areas of expertise
described above. Individuals may selfnominate. Nominations should be
submitted in electronic format
(preferred) using the online nomination
form under ‘‘Public Input on
Membership’’ on the CASAC web page
at https://epa.gov/casac. To be
considered, all nominations should
include the information requested
below. EPA values and welcomes
diversity. All qualified candidates are
encouraged to apply regardless of sex,
E:\FR\FM\25JNN1.SGM
25JNN1
Agencies
[Federal Register Volume 86, Number 120 (Friday, June 25, 2021)]
[Notices]
[Pages 33700-33703]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-13440]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. PL21-2-000]
State Voluntary Agreements To Plan and Pay for Transmission
Facilities
AGENCY: Federal Energy Regulatory Commission, Department of Energy.
ACTION: Notice of policy statement.
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SUMMARY: This policy statement addresses state efforts to develop
transmission facilities through voluntary agreements to plan and pay
for those facilities. We clarify that Voluntary Agreements are not
categorically precluded by the Federal Power Act or the Commission's
existing rules and regulations.
DATES: This policy statement is effective June 17, 2021.
FOR FURTHER INFORMATION CONTACT:
David Tobenkin (Technical Information), Office of Energy Policy and
Innovation, (202) 502-6445, [email protected]
Lina Naik (Legal Information), Office of the General Counsel, (202)
502-8882, [email protected]
Jay Sher (Technical Information), Office of Energy Market Regulation,
(202) 502-8921, [email protected]
SUPPLEMENTARY INFORMATION:
1. This policy statement addresses state efforts to develop
transmission facilities through voluntary agreements to plan and pay
for those facilities (Voluntary Agreements). Voluntary Agreements
include agreements among: (1) Two or more states; (2) one or more
states and one or more public utility transmission providers; or (3)
two or more public utility transmission providers. We clarify that
Voluntary Agreements are not categorically precluded by the Federal
Power Act (FPA) \1\ or the Commission's existing rules and regulations,
and encourage interested parties considering the use of such agreements
to consult with Commission staff. To the extent that states, public
utility transmission providers, or other stakeholders believe that the
relevant tariffs impose barriers to Voluntary Agreements, the
Commission is open to filings to remove or otherwise address those
barriers.
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\1\ 16 U.S.C. 791a et seq.
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2. Developing cost-effective and reliable transmission facilities
remains a priority of this Commission.\2\ Voluntary Agreements can
further those goals by, for example, providing states with a way to
prioritize, plan, and pay for transmission facilities that, for
whatever reason, are not being developed pursuant to the regional
transmission planning processes required by Order No. 1000.\3\ In
addition, in some cases, Voluntary Agreements may allow state-
prioritized transmission facilities to be planned and built more
quickly than would comparable facilities that are
[[Page 33701]]
planned through the regional transmission planning process(es).
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\2\ See Transmission Planning and Cost Allocation by
Transmission Owning and Operating Public Utilities, Order No. 1000,
76 FR 49842 (Aug. 11, 2011), 136 FERC ] 61,051, at P 2 (2011), order
on reh'g and clarification, Order No. 1000-A, 77 FR 32184 (May 31,
2012), 139 FERC ] 61,132, order on reh'g and clarification, Order
No. 1000-B, 77 FR 64890 (Oct. 24, 2012), 141 FERC ] 61,044 (2012),
aff'd sub nom. S.C. Pub. Serv. Auth. v. FERC, 762 F.3d 41 (D.C. Cir.
2014) (instituting reforms to ensure more efficient and cost-
effective regional transmission planning); see also Elec.
Transmission Incentives Pol'y Under Section 219 of the Federal Power
Act, 170 FERC ] 61,204, at P 31 (2020) (Transmission Incentives
NOPR) (noting ``FPA section 219(a) requires that the Commission
provide incentive-based rates for electric transmission for the
purpose of benefitting consumers by ensuring reliability and
reducing the cost of delivered power by reducing transmission
congestion''). The Commission noted in the Transmission Incentives
NOPR that there is a need for existing and new transmission
facilities to help facilitate integration of a variety of types of
resources. Transmission Incentives NOPR, 170 FERC ] 61,204 at P 28.
\3\ Order No. 1000, 136 FERC ] 61,051 at P 146. Order No. 1000
established rules and regulations addressing, among other things,
regional transmission planning, interregional transmission
coordination, and cost allocation methods for new transmission
facilities. This includes requiring each public utility transmission
provider to participate in a regional transmission planning process
that produces a regional transmission plan and complies with certain
transmission planning principles.
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3. Nevertheless, we are concerned that confusion regarding the
relationship between Voluntary Agreements and Commission rules and
regulations may be deterring such agreements. Accordingly, in this
policy statement, we clarify that neither the FPA nor the Commission's
rules and regulations categorically preclude Voluntary Agreements
among: (1) Two or more states; (2) one or more states and one or more
public utility transmission providers; or (3) two or more public
utility transmission providers to plan and pay for new transmission
facilities. In particular, we note that Order No. 1000 allows market
participants, including states, to negotiate voluntarily alternative
cost sharing arrangements that are distinct from the relevant regional
cost allocation method(s).\4\
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\4\ See id. PP 561, 724; Order No. 1000-A, 139 FERC ] 61,132 at
PP 728-729; see also Order No. 1000, 136 FERC ] 61,051 at P 209
n.189 (``[W]e strongly encourage states to participate actively in
the identification of transmission needs driven by Public Policy
Requirements. Public utility transmission providers, for example,
could rely on committees of state regulators or, with appropriate
approval from Congress, compacts between interested states to
identify transmission needs driven by Public Policy Requirements for
the public utility transmission providers to evaluate in the
transmission planning process.''). While we focus here on Voluntary
Agreements as a potential tool for states to advance state policy
goals, the policy statement does not alter market participants'
ability to pursue such arrangements absent state involvement.
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4. As an illustration, we note that the Commission accepted certain
non-Order No. 1000, alternative cost sharing arrangements in the
context of Order No. 1000 compliance filings.\5\ In the case of PJM,
the Commission held that it ``need not find that the State Agreement
Approach and corresponding cost allocation method comply with Order No.
1000.'' \6\ Specifically, with regard to PJM's State Agreement
Approach, the Commission found the approach supplemented and did ``not
conflict or otherwise replace'' PJM's Order No. 1000 process to
consider transmission needs driven by public policy requirements.\7\
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\5\ For example, the Commission accepted PJM Interconnection,
L.L.C.'s (PJM) State Agreement Approach to transmission planning,
which is a transmission planning and cost allocation mechanism
supplementary to PJM's Order No. 1000 regional transmission planning
process. Through the State Agreement Approach, one or more state
governmental entities authorized by their respective states,
individually or jointly, may agree voluntarily to be responsible for
the allocation of all costs of a proposed transmission facility that
addresses state public policy requirements identified or accepted by
the relevant state(s) in the PJM region. See PJM Interconnection,
L.L.C., 142 FERC ] 61,214, at PP 142-143 (2013), order on reh'g and
compliance, 147 FERC ] 61,128, at P 92 (2014); PJM, Intra-PJM
Tariffs, Operating Agreement, sched. 6, section 1.5.9(a) (State
Agreement Approach) (26.0.0). Similarly, ISO New England Inc.'s
(ISO-NE) tariff includes a voluntary process that enables the New
England States Committee on Electricity (NESCOE) and state public
utility regulators to plan and pay for transmission facilities. See
ISO New England Inc., 143 FERC ] 61,150, at P 121 (2013); ISO-NE,
ISO New England Inc. Transmission, Markets and Services Tariff,
sched. 12, section B.6 (Public Policy Transmission Upgrade Costs)
(7.0.0).
\6\ PJM Interconnection, L.L.C., 142 FERC ] 61,214 at P 142.
\7\ Id.
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5. More recently, the Commission approved a study agreement that
initiated a Voluntary Agreement process in PJM. There, the New Jersey
Board of Public Utilities (New Jersey Board), acting pursuant to PJM's
State Agreement Approach, issued an order formally requesting that PJM
open a competitive proposal window to solicit proposals for
transmission facilities to expand the PJM transmission system and to
identify system improvements to interconnect and provide for the
deliverability of 7,500 MW of offshore wind generation into New Jersey
by 2035. The New Jersey Board and PJM entered into a study agreement
directing PJM to solicit proposals for possible transmission facilities
and analyze them to determine the more efficient or cost-effective
enhancement or expansion of transmission facilities to meet New
Jersey's offshore wind goals.\8\ The New Jersey Board explained that
this type of collaborative approach to transmission planning will help
ensure that the high-voltage transmission system accommodates state
clean energy policies and represents a type of state-federal
collaboration consistent with Commission rules and regulations.\9\
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\8\ PJM Interconnection, L.L.C., 174 FERC ] 61,090 (2021).
\9\ Id. P 10.
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6. To the extent that states or public utility transmission
providers believe there are barriers to Voluntary Agreements in
Commission-jurisdictional tariffs or other agreements, we encourage
them to identify those barriers and, as necessary, consider making
filings before this Commission to address those barriers. Commission
staff is available to consult on these issues as states, public utility
transmission providers, and other stakeholders consider addressing such
barriers and the topic of Voluntary Agreements more generally. We
encourage relevant parties to contact Commission staff regarding all
potential Voluntary Agreements.
I. Document Availability
7. 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 proclamation declaring a National
Emergency concerning the Novel Coronavirus Disease (COVID-19), issued
by the President on March 13, 2020.
8. 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.
9. 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].
By direction of the Commission.
Commissioner Chatterjee is not participating.
Commissioner Danly is concurring with a separate statement
attached.
Commissioner Christie is concurring with a separate statement
attached.
Issued: June 17, 2021.
Debbie-Anne A. Reese,
Deputy Secretary.
Department of Energy
Federal Energy Regulatory Commission
State Voluntary Agreements To Plan and Pay for Transmission Facilities
PL21-2-000
DANLY, Commissioner, concurring:
1. I concur in the issuance of this policy statement on state
voluntary agreements to plan and pay for transmission facilities. I do
not know what it accomplishes, but we are not ``categorically
precluded'' from issuing it, and if there is a chance that it can help
critical transmission infrastructure to be built, then I see no reason
to oppose it.
2. The policy states that ``[W]e are concerned that confusion
regarding the relationship between Voluntary Agreements and Commission
rules and regulations may be deterring [Voluntary]
[[Page 33702]]
agreements.'' \1\ We do not cite any examples of such confusion, but--
who knows--it may well exist.
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\1\ State Voluntary Agreements to Plan and Pay for Transmission
Facilities, 175 FERC ] 61,225, at P 3 (2021) (Policy Statement).
---------------------------------------------------------------------------
3. To attempt to dispel this possible confusion, we ``clarify that
Voluntary Agreements are not categorically precluded by the Federal
Power Act (FPA) \2\ or the Commission's existing rules and
regulations.'' \3\ This amounts to a declaration that the FPA and
existing rules and regulations do not obviously prohibit all Voluntary
Agreements--I have no quarrel with that. But I do believe it necessary
to remind everyone that each Voluntary Agreement must still
individually pass muster under our statute and regulations.
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\2\ 16 U.S.C. 791a et seq.
\3\ Policy Statement, 175 FERC ] 61,225 at P 1.
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4. The actual policy in our statement is an invitation:
To the extent that states or public utility transmission providers
believe there are barriers to Voluntary Agreements in Commission-
jurisdictional tariffs or other agreements, we encourage them to
identify those barriers and, as necessary, consider making filings
before this Commission to address those barriers.\4\
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\4\ Id. P 6.
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5. We do not need a policy statement to invite filings. But there
is no harm in it. I also invite and welcome filings before the
Commission so that we can ensure that critical transmission, and
critical natural gas pipelines, and other critical infrastructure, can
obtain the approvals and regulatory certainty they require in order to
be built.
For these reasons, I respectfully concur.
James P. Danly,
Commissioner.
Department of Energy
Federal Energy Regulatory Commission
State Voluntary Agreements To Plan and Pay for Transmission Facilities
Docket No. PL21-2-000
CHRISTIE, Commissioner, concurring:
1. I concur and write separately to add the following.
2. Today's Policy Statement \1\ reaffirms that voluntary agreements
among states to promote transmission development to meet state public
policies are not categorically precluded by Commission rules and
regulations. Order No. 1000 made clear that states voluntarily could
negotiate alternative cost sharing arrangements that are distinct from
the relevant regional cost allocation method \2\ and that order
highlighted a vehicle for multiple states to cooperate, interstate
compacts.\3\ As the Policy Statement notes, the Commission has accepted
certain alternative cost sharing arrangements in the context of Order
No. 1000 compliance filings.\4\ I would note that voluntary agreements
are open to all states without regard to whether they participate in
Regional Transmission Organizations (RTOs) or Independent System
Operators (ISOs) \5\ and they need not be limited in purpose to
transmission only. Relevant history illustrates.
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\1\ State Voluntary Agreements to Plan and Pay for Transmission
Facilities, 175 FERC ] 61,225 (2021) (Policy Statement).
\2\ See Policy Statement at PP 3-4, nn.4-5.
\3\ See id. at n.4. Interstate compacts among states must be
approved by Congress. U.S. Const. art.1, section 10, cl. 3.
\4\ Policy Statement at n.5 (citing PJM's State Agreement
Approach as an example of a vehicle by which a state or states may
voluntarily pursue transmission projects to fulfill their own
individual public policies and bear the costs of such policy-driven
projects themselves.).
\5\ Technically speaking, state-regulated utilities participate
in RTOs/ISOs, subject to state law.
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3. RTOs/ISOs \6\ were established more than two decades ago during
the ``restructuring'' era that saw about half the states initially
adopt some version of policies requiring their vertically-integrated
utilities to divest or at least ``functionally separate'' their
generating assets, which were then supposed to compete on price in RTO/
ISO markets with independent power producers (``IPPs,'' sometimes
called ``NUGS'' for non-utility generators--the acronyms float like
confetti in this business).\7\
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\6\ See Regional Transmission Organizations, Order No. 2000,
FERC Stats. & Regs. ] 31,089 (1999) (cross-referenced at 89 FERC ]
61,285), order on reh'g, Order No. 2000-A, FERC Stats. & Regs. ]
31,092 (2000) (cross-referenced at 90 FERC ] 61,201), aff'd sub nom.
Pub. Util. Dist. No. 1 of Snohomish Cty. v. FERC, 272 F.3d 607 (D.C.
Cir. 2001). Order No. 2000 was issued in 1999 and established
criteria for RTOs/ISOs.
\7\ The restructuring era was short-lived. Several states
subsequently reversed their earlier decisions and returned to some
form of vertical integration. See Tyson Slocum, The Failure of
Electricity Deregulation: History, Status and Needed Reforms, Public
Citizen's Energy Program, March 2007, at 5; see, e.g., Ch. 933, 2007
Va. Acts of Assembly (April 4, 2007). Restructuring was sometimes
inaccurately called ``deregulation,'' which implied a move from
highly structured cost-of-service regulation to true free markets in
power supply, but it was typically more a swap of one complicated
regulatory construct for another one just as vulnerable to rent-
seeking. See, e.g., Severin Borenstein and James Bushnell, The U.S.
Electricity Industry after 20 Years of Restructuring, National
Bureau of Economic Research, April 2015, at Abstract (``We argue
that the greatest political motivation for restructuring was rent
shifting, not efficiency improvements, and that this explanation is
supported by observed waxing and waning of political enthusiasm for
electricity reform.''); see also id. at 1.
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4. Importantly, the states which chose to participate in RTO/ISO
markets during the restructuring era shared a general consensus that
the purpose of RTOs/ISOs was to plan the regional transmission
necessary to promote reliability at the least-cost to consumers and to
operate energy and capacity markets to provide consumers with least-
cost power on a non-discriminatory basis, i.e., without regard to the
source of the electrons (sometimes called ``economic dispatch'').
Federal regulation reflected this consensus about the purpose of RTOs/
ISOs.\8\
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\8\ The Energy Policy Act of 2005 provided a definition of
economic dispatch: as ``the operation of generation facilities to
produce energy at the lowest cost to reliably serve consumers,
recognizing any operational limits of generation and transmission
facilities.'' Energy Policy Act of 2005 (EPAct 2005), Public Law
109-58, 1234(b), 119 Stat. 594, 960 (2005) (codified at 42 U.S.C.
16432(b)) (emphasis added).
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5. That consensus no longer exists at either the state or federal
levels. The past several years have seen an increasing divergence of
public policies in states that are members of multi-state RTOs/ISOs,
over such fundamental issues as mandated resource mixes, compensation
in capacity markets, transmission planning criteria and cost
allocation, and carbon taxes.\9\ The disappearance of the original
consensus about the purpose of RTO/ISO markets has serious implications
across a range of issues, but the adoption of this Policy Statement by
the Commission offers a good time to emphasize that states that wish to
cooperate with other states which share similar public-policy goals--
whether environmental, reliability or economic--have options for
achieving regional benefits outside the context of RTO/ISO
participation.
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\9\ This divergence did not happen yesterday, but has been
building. One commentator wrote ten years ago that ``. . . state
legislation and regulatory choices continue to push the electricity
industries of the various states along vastly different paths.'' Ari
Peskoe, A Challenge for Federalism: Achieving National Goals in the
Electricity Industry, 18 Mo. Envtl. L. & Pol'y Rev. 209, 211 (2011)
(``Peskoe'') (emphasis added).
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6. In particular, I would point out that while this Policy
Statement emphasizes the potential availability of voluntary agreements
among states to promote interstate transmission development, voluntary
state agreements may also be available for other purposes. Before the
restructuring era, many state-regulated utilities participated in
multi-state power pools \10\ designed to support reliability by
wheeling power from state to state when needed to avoid load shedding,
as well as facilitating bilateral
[[Page 33703]]
sales of excess power.\11\ These sales would benefit customers of the
selling utility, when booked as a customer credit for off-system sales,
and benefit customers of the purchasing utility when booked in the
``fuel factor'' at cost, with no return on equity (ROE) applied.
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\10\ For over half a century, PJM was a power pool. See https://pjm.com/about-pjm/who-we-are/pjm-history.
\11\ See generally Peskoe at 223-24. Any application to this
Commission to establish a power pool or other similar arrangement
will, of course, come with its own specific evidentiary record and
will be considered individually under applicable laws at the time.
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7. Options such as these are still available. Through the use of
interstate compacts, enabling legislation \12\ could create multi-state
entities that can plan transmission projects--as this Policy Statement
encourages--but such entities also could be designed to function as
modern, innovative versions of power pools aligned with the member
states' public policies as to resource adequacy and preferences. The
enabling legislation could also ensure a sufficient state role in the
governance to ensure that the authority was used only in accordance
with member-state policies.\13\
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\12\ Power pools were generally regulated by the Federal Power
Commission, and later by FERC. See, e.g., id. Congress could,
however, through enabling legislation, grant various regulatory
powers to the requesting states which seek to participate in a power
pool arrangement. For example, Congress could include in such grant
of authority an explicit power to apply a carbon tax to wholesale
transactions in a power pool if such power was requested by the
member states, avoiding the many questions attendant to whether
RTOs/ISOs themselves have such power. See Carbon Pricing in
Organized Wholesale Electricity Markets, 175 FERC ] 61,036 (2021)
(Christie, Comm'r concurring in part and dissenting in part at PP
12-14, 17-24 (available at https://www.ferc.gov/news-events/news/item-e-2-commissioner-mark-c-christie-concurring-part-and-dissenting-part)).
\13\ For an example of such a broad grant of power to the
states, Congress in the Energy Policy Act of 2005 allowed three or
more contiguous states to enter into a compact, subject to the
approval by Congress, to form their own regional transmission siting
entities that would have siting authority for those states. EPAct
2005, Public Law 109-58, section 1221(i), 119 Stat. 594, 950 (2005)
(codified at 16 U.S.C. 824p(i)).
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8. States sharing similar public policies which desire to
collaborate with each other to obtain the benefits of regional
cooperation have innovative options to explore and consider whether
they participate in an RTO/ISO or do not. The adoption of this Policy
Statement is a good time to emphasize that opportunity.
For these reasons, I respectfully concur.
Mark C. Christie,
Commissioner.
[FR Doc. 2021-13440 Filed 6-24-21; 8:45 am]
BILLING CODE 6717-01-P