80 FR 57704 - Disturbance Monitoring and Reporting Requirements Reliability Standard
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission Federal Register Volume 80, Issue 186 (September 25, 2015)
Federal Energy Regulatory Commission
Federal Register Volume 80, Issue 186 (September 25, 2015)
| Page Range | 57704-57709 | |
| FR Document | 2015-24278 |
[Federal Register Volume 80, Number 186 (Friday, September 25, 2015)] [Rules and Regulations] [Pages 57704-57709] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-24278] [[Page 57704]] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF ENERGY Federal Energy Regulatory Commission 18 CFR Part 40 [Docket No. RM15-4-000; Order No. 814] Disturbance Monitoring and Reporting Requirements Reliability Standard AGENCY: Federal Energy Regulatory Commission, DOE. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Federal Energy Regulatory Commission approves Reliability Standard PRC-002-2 (Disturbance Monitoring and Reporting Requirements) submitted by the North American Electric Reliability Corporation. The purpose of Reliability Standard PRC-002-2 is to have adequate data available to facilitate analysis of bulk electric system disturbances. DATES: Effective Date: This rule will become effective November 24, 2015. FOR FURTHER INFORMATION CONTACT: Juan R. Villar (Technical Information), Office of Electric Reliability, Division of Reliability Standards and Security, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, Telephone: (202) 536-2930, [email protected]. Alan Rukin (Legal Information), Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, Telephone: (202) 502-8502, [email protected]. SUPPLEMENTARY INFORMATION: Order No. 814 Final Rule (Issued September 17, 2015) 1. Pursuant to section 215 of the Federal Power Act (FPA), the Federal Energy Regulatory Commission (Commission) approves Reliability Standard PRC-002-2 (Disturbance Monitoring and Reporting Requirements).\1\ The North American Electric Reliability Corporation (NERC), the Commission-certified Electric Reliability Organization (ERO), submitted Reliability Standard PRC-002-2 for approval. The purpose of Reliability Standard PRC-002-2 is to have adequate data available to facilitate analysis of bulk electric system disturbances. In addition, the Commission approves the associated violation risk factors and violation severity levels, implementation plan, and effective date proposed by NERC. The Commission also approves the retirement of Reliability Standard PRC-018-1 due to its consolidation with Reliability Standard PRC-002-2. --------------------------------------------------------------------------- \1\ 16 U.S.C. 824o. --------------------------------------------------------------------------- I. Background A. Section 215 and Mandatory Reliability Standards 2. Section 215 of the FPA requires a Commission-certified ERO to develop mandatory and enforceable Reliability Standards, subject to Commission review and approval.\2\ Once approved, the Reliability Standards may be enforced by the ERO subject to Commission oversight or by the Commission independently.\3\ In 2006, the Commission certified NERC as the ERO pursuant to FPA section 215.\4\ --------------------------------------------------------------------------- \2\ Id. 824o(c), (d). \3\ Id. 824o(e). \4\ North American Electric Reliability Corp., 116 FERC ] 61,062 (ERO Certification Order), order on reh'g and compliance, 117 FERC ] 61,126 (2006), order on compliance, 118 FERC ] 61,190, order on reh'g, 119 FERC ] 61,046 (2007), rev. denied sub nom. Alcoa Inc. v. FERC, 564 F.3d 1342 (D.C. Cir. 2009). --------------------------------------------------------------------------- B. Order No. 693 3. On March 16, 2007, the Commission issued Order No. 693, approving 83 of the 107 Reliability Standards filed by NERC, including Reliability Standard PRC-018-1.\5\ Reliability Standard PRC-018-1 requires the installation of disturbance monitoring equipment and the reporting of disturbance data in accordance with comprehensive requirements.\6\ --------------------------------------------------------------------------- \5\ Mandatory Reliability Standards for the Bulk-Power System, Order No. 693, FERC Stats. and Regs. ] 31,242, order on reh'g, Order No. 693-A, 120 FERC ] 61,053 (2007). \6\ Id. PP 1550-1551. --------------------------------------------------------------------------- 4. In Order No. 693, the Commission determined that proposed Reliability Standard PRC-002-1 was a ``fill-in-the-blank'' Reliability Standard because it required Regional Reliability Organizations to establish requirements for installation of disturbance monitoring equipment and report disturbance data to facilitate analyses of events and verify system models.\7\ The Commission stated that it would not approve or remand proposed Reliability Standard PRC-002-1 until NERC submitted additional necessary information to the Commission.\8\ --------------------------------------------------------------------------- \7\ Id. P 1451. \8\ Id. P 1456. --------------------------------------------------------------------------- C. NERC Petition and Reliability Standard PRC-002-2 5. On December 15, 2014, NERC submitted a petition seeking Commission approval of proposed Reliability Standard PRC-002-2.\9\ NERC contended that Reliability Standard PRC-002-2 is just, reasonable, not unduly discriminatory or preferential, and in the public interest. NERC explained that Reliability Standard PRC-002-2 consolidates the requirements of unapproved Reliability Standard PRC-002-1 and currently-effective Reliability Standard PRC-018-1.\10\ --------------------------------------------------------------------------- \9\ Reliability Standard PRC-002-2 is not attached to this final rule. The Reliability Standard is available on the Commission's eLibrary document retrieval system in Docket No. RM15-4-00 and is posted on NERC's Web site, available at http://www.nerc.com. \10\ NERC Petition at 15. --------------------------------------------------------------------------- 6. NERC stated that it is important to monitor and analyze disturbances to plan and operate the Bulk-Power System to avoid instability, separation and cascading failures.\11\ NERC maintained that Reliability Standard PRC-002-2 improves reliability by providing personnel with necessary data to enable more effective post event analysis, which can also be used to verify system models.\12\ Moreover, NERC explained that the Reliability Standard ``focuses on ensuring that the requisite data is captured and the Requirements constitute a results[hyphen]based approach to capturing data.''\13\ --------------------------------------------------------------------------- \11\ Id. at 13. NERC defines a ``Disturbance'' as: ``(1) an unplanned event that produces an abnormal system condition; (2) any perturbation to the electric system; [or] (3) the unexpected change in [area control error] that is caused by the sudden failure of generation or interruption of load.'' Id. (quoting Glossary of Terms Used in NERC Reliability Standards at 30). \12\ Id. at 15. \13\ Id. at 14-15. --------------------------------------------------------------------------- 7. NERC stated that, in the United States, Reliability Standard PRC-002-2 will apply to planning coordinators in the Eastern Interconnection, planning coordinators or the reliability coordinator in the Electric Reliability Council of Texas (ERCOT) Interconnection, and the reliability coordinator in the Western Interconnection, which are collectively referred to as ``Responsible Entities.'' Reliability Standard PRC-002-2 will also apply to transmission owners and generation owners. 8. NERC stated that Reliability Standard PRC-002-2 includes 12 requirements. Requirement R1 requires transmission owners: (1) To identify bulk electric system buses, e.g., substations, for which sequence of events recording and fault record data is required; (2) to notify other owners of bulk electric system elements connected to those particular bulk electric system buses where sequence of events recording and fault record data will be necessary; and (3) to re- evaluate all bulk [[Page 57705]] electric system buses every five years. Requirement R2 requires transmission owners and generation owners to collect sequence of events data. Requirement R3 and Requirement R4 require transmission owners and generation owners to collect fault recording data and parameters of that data. Requirement R5 through Requirement R9 lay out thresholds where dynamic disturbance recording data are required and provide more specifics on its collection.\14\ Requirement R10 requires transmission owners and generation owners to time synchronize the recordings. According to NERC, Requirement R10 provides the synchronization requirements in response to Recommendation No. 28 from the final report on the August 2003 blackout issued by the U.S.-Canada Power System Outage Task Force (Blackout Report).\15\ Requirement R11 requires transmission owners and generation owners to provide sequence of events recording, fault recording and dynamic disturbance recording data upon request and establishes specific guidelines to ensure that data can be used in the analysis of events. Requirement R12 requires transmission owners and generation owners to restore the recording capability of the equipment used to record disturbances, if this capability is interrupted. --------------------------------------------------------------------------- \14\ NERC Petition, Ex. A (Proposed Reliability Standard PRC- 002-2), Attachment 1, Step 8 states: [Sequence of events recordings] and [fault recording] data is required at additional [bulk electric system] buses on the list determined in Step 6. The aggregate of the number of [bulk electric system] buses determined in Step 7 and this Step will be at least 20 percent of the [bulk electric system] buses determined in Step 6. The additional [bulk electric system] buses are selected, at the [t]ransmission [o]wner's discretion, to provide maximum wide-area coverage for [Sequence of events recordings] and [fault recording] data. The following [bulk electric system] bus locations are recommended: Electrically distant buses or electrically distant from other [disturbance monitoring equipment] devices. Voltage sensitive areas. Cohesive load and generation zones. [Bulk electric system] buses with a relatively high number of incident [t]ransmission circuits. [Bulk electric system] buses with reactive power devices. Major [f]acilities interconnecting outside the [t]ransmission [o]wner's area. \15\ NERC Petition at 35-36 (quoting U.S.-Canada Power System Outage Task Force, Final Report on the August 14, 2003 Blackout in the United States and Canada: Causes and Recommendations at 162 (Apr. 2004), available at http://energy.gov/sites/prod/files/oeprod/DocumentsandMedia/BlackoutFinal-Web.pdf). --------------------------------------------------------------------------- 9. NERC proposed an implementation plan that includes an effective date for Reliability Standard PRC-002-2 that is the first day of the first calendar quarter that is six months after the date that the Commission approves the Reliability Standard. Concurrent with the effective date, the implementation plan calls for the retirement of currently-effective Reliability Standard PRC-018-1 and ``pending'' Reliability Standard PRC-002-1.\16\ --------------------------------------------------------------------------- \16\ Id. at Ex. B (Implementation Plan). --------------------------------------------------------------------------- D. Notice of Proposed Rulemaking 10. On April 16, 2015, the Commission issued a Notice of Proposed Rulemaking proposing to approve Reliability Standard PRC-002-2.\17\ The NOPR also proposed to approve the associated violation risk factors and violation severity levels, implementation plan, and effective date proposed by NERC. --------------------------------------------------------------------------- \17\ Disturbance Monitoring and Reporting Requirements Reliability Standard, Notice of Proposed Rulemaking, 80 FR 22,441 (Apr. 22, 2015), 151 FERC ] 61,042 (2015) (NOPR). --------------------------------------------------------------------------- 11. In response to the NOPR, NERC filed initial comments in support of the NOPR. Bonneville Power Administration (Bonneville) and American Public Power Association (APPA) filed comments addressing aspects of Reliability Standard PRC-002-2 and the NOPR.\18\ NERC filed reply comments in response to Bonneville and APPA's comments. Below, we address the issues raised in Bonneville and APPA's comments. --------------------------------------------------------------------------- \18\ Mr. Eric S. Morris's comments did not specifically address issues concerning Reliability Standard PRC-002-2 or the NOPR. --------------------------------------------------------------------------- II. Discussion 12. Pursuant to FPA section 215(d)(2), the Commission approves Reliability Standard PRC-001-2 as just, reasonable, not unduly discriminatory or preferential, and in the public interest. We also approve the associated violation risk factors, violation severity levels, implementation plan, and effective date proposed by NERC. In addition, we approve the retirement of Reliability Standard PRC-018-1 due to its consolidation with Reliability Standard PRC-002-2.\19\ --------------------------------------------------------------------------- \19\ As noted above, the Commission in Order No. 693 did not approve proposed Reliability Standard PRC-002-1 but, rather, took no action on the Reliability Standard pending the receipt of additional information. Order No. 693, FERC Stats. and Regs. ] 31,242 at P 1456. Accordingly, with the approval of Reliability Standard PRC- 002-2, proposed Reliability Standard PRC-002-1 is ``retired,'' i.e., withdrawn, and no longer pending before the Commission. --------------------------------------------------------------------------- 13. Reliability Standard PRC-002-2 enhances reliability by imposing mandatory requirements concerning the monitoring and reporting of disturbances. Reliability Standard PRC-002-2 provides greater continent-wide consistency regarding collection methods for data used in the analysis of disturbances on the Bulk-Power System. Specifically, Reliability Standard PRC-002-2 enhances reliability by consistently requiring covered entities to collect time-synchronized information and to report disturbances on the Bulk-Power System. Accordingly, we determine that Reliability Standard PRC-002-2 satisfies the relevant directive in Order No. 693.\20\ --------------------------------------------------------------------------- \20\ Order No. 693, FERC Stats. and Regs. ] 31,242 at P 1456 (``the ERO should consider whether greater consistency can be achieved'' regarding disturbance monitoring and reporting). --------------------------------------------------------------------------- 14. We address below Bonneville's comments regarding the methodology used in Reliability Standard PRC-002-2 to identify bulk electric system buses that require data recording and, in Section V below, APPA's comments regarding the NOPR's Regulatory Flexibility Act certification. Methodology for Identifying Applicable Bulk Electric System Buses NOPR 15. The NOPR proposed to approve Reliability Standard PRC-002-2 because the Reliability Standard enhances reliability by imposing mandatory requirements concerning the monitoring and reporting of disturbances and provides greater continent-wide consistency regarding collection methods for data used in the analysis of disturbances on the Bulk-Power System. The NOPR did not raise concerns regarding the methodology used in Reliability Standard PRC-002-2 for identifying bulk electric system buses that require data recording. Comments 16. Bonneville states that it supports using digital fault recorders for sequence of events recordings and fault recordings, but Bonneville does not support the methodology used to identify bulk electric system buses that require data recording.\21\ Bonneville claims that NERC's petition did not provide a technical justification for the 1,500 Mega Volt Amps (MVA) calculated three-phase short circuit threshold in Reliability Standard PRC-002-2.\22\ Bonneville states that previous drafts of the Reliability Standard ``used more logical criteria that the industry has utilized in the past, such as the number of lines connected to a bus.'' \23\ --------------------------------------------------------------------------- \21\ Bonneville Comments at 2-3. \22\ Id. at 3. \23\ Id. --------------------------------------------------------------------------- 17. Bonneville also contends that the methodology used in Reliability Standard PRC-002-2 does not allow for adequate consideration of the unique characteristics of an individual utility's [[Page 57706]] system.\24\ Bonneville acknowledges that Reliability Standard PRC-002- 2, Requirement R1 (in Attachment 1, Step 8) allows for the selection of additional bulk electric system buses ``at the Transmission Owner's discretion, to provide maximum wide-area coverage for [sequence of events] and [fault recording] data.'' \25\ However, Bonneville contends that such discretion ``may not result in consistent or repeatable results.'' \26\ Bonneville also questions how this provision would be audited.\27\ Bonneville recommends replacing the methodology in Reliability Standard PRC-002-2 with an existing methodology used in other Reliability Standards to identify critical facilities and the bulk electric system buses associated with those facilities, such as the high, medium, and low impact designations used in Reliability Standard CIP-005-5.1.\28\ --------------------------------------------------------------------------- \24\ Id. \25\ Id. \26\ Id. \27\ Id. \28\ Id. at 4. --------------------------------------------------------------------------- 18. In its reply comments, NERC states that Reliability Standard PRC-002-2 provides a technically sound basis for identifying which buses require data collection.\29\ NERC contends that MVA levels more accurately measure the reliability impact of a particular bus than counting the number of transmission lines connected to the bus.\30\ NERC explains that that the standard drafting team established the MVA threshold by sending an information request to all transmission owners and generator owners requesting data on bus fault magnitude for three- phase bolted faults on buses operated at 100 kV and higher.\31\ NERC states that the standard drafting team performed a median value analysis and concluded that the appropriate threshold is 1,500 MVA.\32\ --------------------------------------------------------------------------- \29\ NERC Reply Comments at 5-6. \30\ Id. at 6-7. \31\ Id. at 7-8. \32\ Id. at 8. --------------------------------------------------------------------------- 19. NERC explains that it included Step 8 of the bus identification methodology in Reliability Standard PRC-002-2 to allow for the engineering judgment of a transmission owner to account for the unique characteristics of its system and to ensure adequate data capture for proper event analysis.\33\ NERC notes that Step 8 also provides criteria to guide an entity's decision and that, given this objective criteria, auditors will have a firm basis to assess whether the transmission owner satisfied its obligation under Step 8.\34\ In response to Bonneville's alternative approach, NERC contends that the selection methodology in Reliability Standard CIP 005-5.1 contemplates cybersecurity issues and does not contemplate the optimum location of disturbance monitoring.\35\ --------------------------------------------------------------------------- \33\ Id. at 8-9. \34\ Id. at 9. \35\ Id. --------------------------------------------------------------------------- Commission Determination 20. We are not persuaded by Bonneville's concerns regarding the methodology used to identify bulk electric system buses that require data recording. As described in NERC's reply comments, NERC has provided adequate technical justification, through the use of survey data and statistical analysis, for the 1,500 MVA threshold in Reliability Standard PRC-002-2. We also find that the methodology in Reliability Standard PRC-002-2 adequately addresses the unique characteristics of individual utility systems by allowing for the selection of additional buses in Step 8 and that the decisions to add buses under Step 8 are auditable. III. Information Collection Statement 21. The collection of information addressed in this final rule is subject to review by the Office of Management and Budget (OMB) under section 3507(d) of the Paperwork Reduction Act of 1995.\36\ OMB's regulations require approval of certain information collection requirements imposed by agency rules.\37\ Upon approval of a collection(s) of information, OMB will assign an OMB control number and an expiration date. Respondents subject to the filing requirements of a rule will not be penalized for failing to respond to these collections of information unless the collections of information display a valid OMB control number. --------------------------------------------------------------------------- \36\ 44 U.S.C. 3507(d). \37\ 5 CFR 1320.11. --------------------------------------------------------------------------- 22. Public Reporting Burden: The number of respondents below is based on an examination of the NERC compliance registry for transmission owners and generation owners and the estimation of how many entities from that registry will be affected. At the time of Commission review of Reliability Standard PRC-002-2, 324 transmission owners and 915 generation owners in the United States are registered in the NERC compliance registry. The Commission notes that many generation sites share a common generation owner. Due to the nature of this task, it is likely generator owners will manage this information aggregation task using a centralized staff. Therefore, we estimate that one-third of the generation owners (305) will have to meet the requirements contained in Reliability Standard PRC-002-2. We estimate that all 324 registered transmission owners will need to comply with requirement R1 in Reliability Standard PRC-002-2 once every five years. We further estimate that two-thirds (216) of the registered transmission owners will need to comply with the remaining requirements contained in Reliability Standard PRC-002-2. Finally, we find the number of ``Responsible Entities'' in the United States to equal 50, based on the NERC compliance registry.\38\ The following table illustrates the burden to be applied to the information collection.\39\ --------------------------------------------------------------------------- \38\ As discussed above, Reliability Standard PRC-002-2 defines the term ``Responsible Entity'' to include planning coordinators in the Eastern Interconnection, the reliability coordinator in the Western Interconnection, and planning coordinators or the reliability coordinator in the ERCOT Interconnection. \39\ In the burden table, engineering is abbreviated as ``Eng.'' and record keeping is abbreviated as ``R.K.'' \40\ The estimates for cost per response are derived using the following formula: Burden Hours per Response * $/hour = Cost per Response. The $65.34/hour figure for an engineer and the $33.42/hour figure for a record clerk are based on the average salary plus benefits data from Bureau of Labor Statistics. \41\ In the NOPR, we estimated that each transmission owner would respond annually. In this final rule, we have revised the table to reflect that Reliability Standard PRC-002-2 requires transmission owners to comply every fifth year. We have revised the calculated values in column 5 of this row and the total row accordingly. ---------------------------------------------------------------------------------------------------------------- Annual number Average burden Requirement and respondent Number of of responses Total number hours & cost Annual burden hours category for PRC-002-2 respondents per of responses per response & total annual cost (1) respondent (2) (1)*(2)=(3) \40\ (4) (3)*(4)=(5) ---------------------------------------------------------------------------------------------------------------- R1. Each Transmission Owner. 324 \41\ 0.2 64.8 (Eng.) 24 hrs. 2,333 hrs. (1,555 ($1,568.16); Eng., 778 R.K.); (R.K.) 12 hrs. $127,605 ($101,618 ($401.04). Eng., $25,987 R.K.). [[Page 57707]] R2. Each Transmission Owner 521 1 521 (Eng.) 10 hrs. 7,294 hrs. (5210 and Generator Owner. ($653.40); Eng., 2084 R.K.); (R.K.) 4 hrs. $410,069 ($340,422 ($133.68). Eng., $69,647 R.K.). R3 & R4. Each Transmission 521 1 521 (Eng.) 10 hrs. 7,294 hrs. (5210 Owner and Generator Owner. ($653.40); Eng., 2084 R.K.); (R.K.) 4 hrs. $410,069 ($340,422 ($133.68). Eng., $69,647 R.K.). R5. Each Responsible Entity. 50 1 50 (Eng.) 24 hrs. 1,800 hrs. (1200 ($1,568.16); Eng., 600 R.K.); (R.K.) 12 hrs. $98,460 ($78,408 ($401.04). Eng., $20,052 R.K.). R6. Each Transmission Owner. 216 1 216 (Eng.) 10 hrs. 3,024 hrs. (2160 ($653.40); Eng., 864 R.K.); (R.K.) 4 hrs. $170,009 ($141,134 ($133.68). Eng., $28,875 R.K.). R7. Each Generator Owner.... 305 1 305 (Eng.) 10 hrs. 4,270 hrs. (3050 ($653.40); Eng., 1220 R.K.); (R.K.) 4 hrs. $240,059 ($199,287 ($133.68). Eng., $40,772 R.K.). R8. Each Transmission Owner 521 1 521 (Eng.) 10 hrs. 7,294 hrs. (5210 and Generator Owner. ($653.40); Eng., 2084 R.K.); (R.K.) 4 hrs. $410,069 ($340,422 ($133.68). Eng., $69,647 R.K.). R9. Each Transmission Owner 521 1 521 (Eng.) 10 hrs. 7,294 hrs. (5210 and Generator Owner. ($653.40); Eng., 2084 R.K.); (R.K.) 4 hrs. $410,069 ($340,422 ($133.68). Eng., $69,647 R.K.). R10. Each Transmission Owner 521 1 521 (Eng.) 10 hrs. 7,294 hrs. (5210 and Generator Owner. ($653.40); Eng., 2084 R.K.); (R.K.) 4 hrs. $410,069 ($340,422 ($133.68). Eng., $69,647 R.K.). R11. Each Transmission Owner 521 1 521 (Eng.) 8 hrs. 6,252 hrs. (4168 and Generator Owner. ($522.72); Eng., 2084 R.K.); (R.K.) 4 hrs. $341,984 ($272,337 ($133.68). Eng., $69,647 R.K.). R12. Each Transmission Owner 52 1 52 (Eng.) 10 hrs. 728 hrs. (520 Eng., and Generator Owner \42\. ($653.40); 208 R.K.); $40,928 (R.K.) 4 hrs. ($33,977 Eng., ($133.68). $6,951 R.K.). ----------------------------------------------------------------------------------- Total................... ........... .............. .............. ............... 54,877 hrs. (38,703 Eng., 16,174 R.K.); $3,069,390 ($2,528,871 Eng., $540,519 R.K.). ---------------------------------------------------------------------------------------------------------------- Title: FERC-725G2 \43\ Disturbance Monitoring and Reporting Requirements. --------------------------------------------------------------------------- \42\ The Commission estimates that 10 percent (or 52) of the 521 registered entities will have to restore recording capability or institute a corrective action plan (CAP) each year. --------------------------------------------------------------------------- Action: Revision to existing collection. --------------------------------------------------------------------------- \43\ FERC-725G2 is temporarily being used because FERC-725G (OMB Control No. 1902-0252) is currently pending review at OMB. --------------------------------------------------------------------------- OMB Control No: 1902-0281. Respondents: Business or other for profit, and not for profit institutions. Frequency of Responses: Annually. Necessity of the Information: Reliability Standard PRC-002-2 sets forth requirements for disturbance monitoring and reporting requirements that will ensure adequate data are available to facilitate analysis of bulk electric system disturbances. Internal review: The Commission has assured itself, by means of its internal review, that there is specific, objective support for the burden estimates associated with the information requirements. 23. Interested persons may obtain information on the reporting requirements by contacting the Federal Energy Regulatory Commission, Office of the Executive Director, 888 First Street, NE., Washington, DC 20426 [Attention: Ellen Brown, email: [email protected], phone: (202) 502-8663, fax: (202) 273-0873]. 24. Comments on the requirements of this rule may also be sent to the Office of Management and Budget, Office of Information and Regulatory Affairs [Attention: Desk Officer for the Federal Energy Regulatory Commission]. For security reasons, comments should be sent by email to OMB at the following email address: [email protected]. Please reference OMB Control No. 1902- 0281, FERC-725G2 and Docket No. RM15-4-000 in your submission. IV. Environmental Analysis 25. 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.\44\ 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.\45\ The actions here fall within this categorical exclusion in the Commission's regulations. --------------------------------------------------------------------------- \44\ Regulations Implementing the National Environmental Policy Act of 1969, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs., Regulations Preambles 1986-1990 ] 30,783 (1987). \45\ 18 CFR 380.4(a)(2)(ii). --------------------------------------------------------------------------- V. Regulatory Flexibility Act 26. The Regulatory Flexibility Act of 1980 (RFA) \46\ generally requires a description and analysis of proposed rules that will have significant economic impact on a substantial number of small entities. The Small Business Administration (SBA) revised its size standards (effective January 22, 2014) for electric utilities from a standard based on megawatt hours to a standard based on the number of employees, including affiliates. --------------------------------------------------------------------------- \46\ 5 U.S.C. 601-612. --------------------------------------------------------------------------- [[Page 57708]] NOPR 27. The Commission proposed that, under SBA's new standards, some transmission owners and generation owners might fall under the following category and associated size threshold: electric bulk power transmission and control at 500 employees; hydroelectric power generation at 500 employees; fossil fuel electric power generation at 750 employees; nuclear electric power generation at 750 employees. 28. The Commission estimated that the number of applicable small entities will be minimal due to the gross MVA thresholds embedded into Reliability Standard PRC-002-2. The gross MVA thresholds focus information collection on bulk electric system facilities having Interconnection-wide impacts worthy of collecting. We estimated that Reliability Standard PRC-002-2 will apply to approximately 521 entities in the United States.\47\ The Commission applied the MVA thresholds above to estimate that approximately 52 (or 10 percent) are small entities. The Commission estimated for these small entities, Reliability Standard PRC-002-2, Requirement R1 may need to be evaluated and documented every five years with costs of $9,847 for each evaluation.\48\ From this set of small entities, the Commission estimated that five percent, or only two or three small entities, may be affected by the other requirements, i.e., Requirements R2 through R12, of Reliability Standard PRC-002-2. The Commission proposed that based on a prior industry-sponsored survey, annual compliance costs will average $100,000-$160,000 for entities subject to these requirements.\49\ --------------------------------------------------------------------------- \47\ This number consists of the 216 transmission owners and the 305 generation owners; however, it does not include the 50 ``Responsible Entities.'' See supra n.38. \48\ The costs associated with evaluation will occur every fifth year. By dividing the estimated costs of evaluation by five, we estimate the annual cost to be $1,969.40. \49\ See NERC Petition Ex. G (Record of Development) at 257 of pdf file, providing link to: NERC Cost Effective Analysis Process (CEAP) Pilot for NERC Project 2007-11--Disturbance Monitoring--PRC- 002-2 at 8 (Apr. 9, 2014). --------------------------------------------------------------------------- Comments 29. APPA contends that the NOPR understates the impact that Reliability Standard PRC-002-2 will have on small entities by underestimating the number or small entities affected and by not addressing the ``discriminatory distribution of implementation costs'' on small entities.\50\ APPA bases its assertion on information provided by one APPA member and not on a formal survey of its members or independent analysis.\51\ APPA states that its unnamed member, a municipal joint action agency, has determined that ten of its members qualify as small entities and that eight of these entities would be subject to the requirements of Reliability Standard PRC-002-2. APPA further claims that ``if the Commission were to extrapolate from the information outlined above to the estimated 52 small [transmission operators] across the country, it would clearly show that a substantial number of small entities are affected by proposed reliability standard PRC-002-2.'' \52\ --------------------------------------------------------------------------- \50\ APPA Comments at 3. \51\ Id. \52\ Id. --------------------------------------------------------------------------- 30. APPA also contends that Reliability Standard PRC-002-2 will place an undue burden on small entities because they do not currently have sequence of events recording or fault recording data recorders installed on their bulk electric system buses.\53\ APPA contrasts this with larger entities that may have already installed those data recorders.\54\ APPA also maintains that small entities' buses likely would not be selected for monitoring if they were included in a larger data set analyzed on a wide-area basis.\55\ APPA further states that the methodology in Reliability Standard PRC-002-2 unduly discriminates against small entities because entities with fewer than 10 qualifying buses will have to monitor a greater percentage of their buses than larger entities, which are responsible to monitor only 10 percent of their buses.\56\ APPA requests that if the Commission does not require changes to Reliability Standard PRC-002-2, the Commission should direct NERC to provide an alternative compliance methodology for small entities that would allow them to find an equally effective method to gather data from upstream buses to reduce the burden on small entities.\57\ --------------------------------------------------------------------------- \53\ Id. at 3-4. \54\ Id. at 4. \55\ Id. at 4-6. \56\ Id. at 6-7. \57\ Id. at 7. --------------------------------------------------------------------------- 31. In its reply comments, NERC contends that Reliability Standard PRC-002-2 does not place an undue burden on small entities.\58\ NERC states that Reliability Standard PRC-002-2 does not explicitly require the installation of fault recording data recorders on all identified buses.\59\ NERC explains that transmission owners need not install devices to meet the requirements of Reliability Standard PRC-002-2 as long as the transmission owner can obtain the required data from other sources such as other buses.\60\ NERC contends that APPA's comment that the Reliability Standard should identify either regional or sub- regional bus locations as appropriate for disturbance monitoring is flawed because transmission owners are in the best position to determine the location of the buses due to their knowledge of their systems.\61\ --------------------------------------------------------------------------- \58\ NERC Reply Comments at 9-11. \59\ Id. at 9. \60\ Id. at 9-10. \61\ Id. at 11. --------------------------------------------------------------------------- Commission Determination 32. The RFA requires an analysis when a rule will have significant economic impact on a substantial number of small entities. The comments submitted by APPA do not justify altering the RFA certification proposed in the NOPR. 33. We are not persuaded by APPA's claims regarding the number of small entities likely to be affected by Reliability Standard PRC-002-2. APPA relied on an unverified report from a single unnamed entity to claim that eight small entities (rather than the two or three estimated in the NOPR) would be affected by Reliability Standard PRC-002-2. Even if we were to assume that APPA is correct regarding the eight small entities, we find that eight small entities out of 52 estimated small entities is not a substantial number of small entities. Further, aside from the number of small entities affected, APPA does not address the NOPR's estimate that Reliability Standard PRC-002-2 will not impose a significant economic impact on applicable small entities. 34. With respect to APPA's claim that Reliability Standard PRC-002- 2 imposes ``discriminatory distribution of implementation costs on small entities,'' \62\ we agree with NERC that APPA's comments are premised on the incorrect assertion that Reliability Standard PRC-002-2 requires the installation of recording devices. As noted in NERC's reply comments, Reliability Standard PRC-002-2 gives applicable entities ``the flexibility to either install devices on their systems or, to reduce their financial burden, obtain the necessary data through other means (e.g., by working with their interconnected neighbors).'' \63\ --------------------------------------------------------------------------- \62\ Id. at 3. \63\ Id. at 10. --------------------------------------------------------------------------- 35. Accordingly, we certify that Reliability Standard PRC-002-2 will not have a significant economic impact on a substantial number of small entities. VI. Document Availability 36. In addition to publishing the full text of this document in the Federal [[Page 57709]] Register, the Commission provides all interested persons an opportunity to view and/or print the contents of this document via the Internet through the Commission's Home Page (http://www.ferc.gov) and in the Commission's Public Reference Room during normal business hours (8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street, NE., Room 2A, Washington, DC 20426. 37. 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. 38. User assistance is available for eLibrary and the Commission's Web site during normal business hours from FERC Online Support at 202- 502-6652 (toll free at 1-866-208-3676) or email at [email protected], or the Public Reference Room at (202) 502- 8371, TTY (202) 502-8659. Email the Public Reference Room at [email protected]. VII. Effective Date and Congressional Notification 39. The final rule is effective November 24, 2015. The Commission has determined, with the concurrence of the Administrator of the Office of Information and Regulatory Affairs of OMB, that this rule is not a ``major rule'' as defined in section 351 of the Small Business Regulatory Enforcement Fairness Act of 1996. This final rule is being submitted to the Senate, House, and Government Accountability Office. By the Commission. Issued: September 17, 2015. Nathaniel J. Davis, Sr., Deputy Secretary. [FR Doc. 2015-24278 Filed 9-24-15; 8:45 am] BILLING CODE 6717-01-P
![57704 Federal Register / Vol. 80, No. 186 / Friday, September 25, 2015 / Rules and Regulations
DEPARTMENT OF ENERGY and effective date proposed by NERC. Reliability Standard PRC–002–2.9 NERC
The Commission also approves the contended that Reliability Standard
Federal Energy Regulatory retirement of Reliability Standard PRC– PRC–002–2 is just, reasonable, not
Commission 018–1 due to its consolidation with unduly discriminatory or preferential,
Reliability Standard PRC–002–2. and in the public interest. NERC
18 CFR Part 40 explained that Reliability Standard
I. Background PRC–002–2 consolidates the
[Docket No. RM15–4–000; Order No. 814]
A. Section 215 and Mandatory requirements of unapproved Reliability
Disturbance Monitoring and Reporting Reliability Standards Standard PRC–002–1 and currently-
Requirements Reliability Standard effective Reliability Standard PRC–018–
2. Section 215 of the FPA requires a 1.10
AGENCY: Federal Energy Regulatory Commission-certified ERO to develop 6. NERC stated that it is important to
Commission, DOE. mandatory and enforceable Reliability monitor and analyze disturbances to
ACTION: Final rule. Standards, subject to Commission plan and operate the Bulk-Power
review and approval.2 Once approved, System to avoid instability, separation
SUMMARY: The Federal Energy the Reliability Standards may be and cascading failures.11 NERC
Regulatory Commission approves enforced by the ERO subject to maintained that Reliability Standard
Reliability Standard PRC–002–2 Commission oversight or by the PRC–002–2 improves reliability by
(Disturbance Monitoring and Reporting Commission independently.3 In 2006, providing personnel with necessary data
Requirements) submitted by the North the Commission certified NERC as the to enable more effective post event
American Electric Reliability ERO pursuant to FPA section 215.4 analysis, which can also be used to
Corporation. The purpose of Reliability verify system models.12 Moreover,
B. Order No. 693
Standard PRC–002–2 is to have NERC explained that the Reliability
adequate data available to facilitate 3. On March 16, 2007, the Standard ‘‘focuses on ensuring that the
analysis of bulk electric system Commission issued Order No. 693, requisite data is captured and the
disturbances. approving 83 of the 107 Reliability Requirements constitute a results-based
DATES: Effective Date: This rule will Standards filed by NERC, including approach to capturing data.’’13
become effective November 24, 2015. Reliability Standard PRC–018–1.5 7. NERC stated that, in the United
Reliability Standard PRC–018–1 States, Reliability Standard PRC–002–2
FOR FURTHER INFORMATION CONTACT:
Juan R. Villar (Technical Information), requires the installation of disturbance will apply to planning coordinators in
Office of Electric Reliability, Division monitoring equipment and the reporting the Eastern Interconnection, planning
of Reliability Standards and Security, of disturbance data in accordance with coordinators or the reliability
Federal Energy Regulatory comprehensive requirements.6 coordinator in the Electric Reliability
Commission, 888 First Street NE., 4. In Order No. 693, the Commission Council of Texas (ERCOT)
Washington, DC 20426, Telephone: determined that proposed Reliability Interconnection, and the reliability
(202) 536–2930, Juan.Villar@ferc.gov. Standard PRC–002–1 was a ‘‘fill-in-the- coordinator in the Western
Alan Rukin (Legal Information), Office blank’’ Reliability Standard because it Interconnection, which are collectively
of the General Counsel, Federal required Regional Reliability referred to as ‘‘Responsible Entities.’’
Energy Regulatory Commission, 888 Organizations to establish requirements Reliability Standard PRC–002–2 will
First Street NE., Washington, DC for installation of disturbance also apply to transmission owners and
20426, Telephone: (202) 502–8502, monitoring equipment and report generation owners.
Alan.Rukin@ferc.gov. disturbance data to facilitate analyses of 8. NERC stated that Reliability
events and verify system models.7 The Standard PRC–002–2 includes 12
SUPPLEMENTARY INFORMATION:
Commission stated that it would not requirements. Requirement R1 requires
Order No. 814 approve or remand proposed Reliability transmission owners: (1) To identify
Standard PRC–002–1 until NERC bulk electric system buses, e.g.,
Final Rule
submitted additional necessary substations, for which sequence of
(Issued September 17, 2015) information to the Commission.8 events recording and fault record data is
1. Pursuant to section 215 of the required; (2) to notify other owners of
Federal Power Act (FPA), the Federal C. NERC Petition and Reliability bulk electric system elements connected
Energy Regulatory Commission Standard PRC–002–2 to those particular bulk electric system
(Commission) approves Reliability 5. On December 15, 2014, NERC buses where sequence of events
Standard PRC–002–2 (Disturbance submitted a petition seeking recording and fault record data will be
Monitoring and Reporting Commission approval of proposed necessary; and (3) to re-evaluate all bulk
Requirements).1 The North American
Electric Reliability Corporation (NERC), 2 Id. 824o(c), (d).
9 Reliability Standard PRC–002–2 is not attached
the Commission-certified Electric 3 Id. 824o(e).
to this final rule. The Reliability Standard is
available on the Commission’s eLibrary document
Reliability Organization (ERO), 4 North American Electric Reliability Corp., 116
retrieval system in Docket No. RM15–4–00 and is
submitted Reliability Standard PRC– FERC ¶ 61,062 (ERO Certification Order), order on posted on NERC’s Web site, available at http://
002–2 for approval. The purpose of reh’g and compliance, 117 FERC ¶ 61,126 (2006), www.nerc.com.
order on compliance, 118 FERC ¶ 61,190, order on 10 NERC Petition at 15.
Reliability Standard PRC–002–2 is to reh’g, 119 FERC ¶ 61,046 (2007), rev. denied sub 11 Id. at 13. NERC defines a ‘‘Disturbance’’ as: ‘‘(1)
have adequate data available to facilitate nom. Alcoa Inc. v. FERC, 564 F.3d 1342 (D.C. Cir.
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an unplanned event that produces an abnormal
analysis of bulk electric system 2009). system condition; (2) any perturbation to the
5 Mandatory Reliability Standards for the Bulk-
disturbances. In addition, the electric system; [or] (3) the unexpected change in
Power System, Order No. 693, FERC Stats. and Regs. [area control error] that is caused by the sudden
Commission approves the associated ¶ 31,242, order on reh’g, Order No. 693–A, 120 failure of generation or interruption of load.’’ Id.
violation risk factors and violation FERC ¶ 61,053 (2007). (quoting Glossary of Terms Used in NERC
severity levels, implementation plan, 6 Id. PP 1550–1551. Reliability Standards at 30).
7 Id. P 1451. 12 Id. at 15.
1 16 U.S.C. 824o. 8 Id. P 1456. 13 Id. at 14–15.
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![Federal Register / Vol. 80, No. 186 / Friday, September 25, 2015 / Rules and Regulations 57705
electric system buses every five years. Commission approves the Reliability disturbances on the Bulk-Power System.
Requirement R2 requires transmission Standard. Concurrent with the effective Specifically, Reliability Standard PRC–
owners and generation owners to collect date, the implementation plan calls for 002–2 enhances reliability by
sequence of events data. Requirement the retirement of currently-effective consistently requiring covered entities
R3 and Requirement R4 require Reliability Standard PRC–018–1 and to collect time-synchronized
transmission owners and generation ‘‘pending’’ Reliability Standard PRC– information and to report disturbances
owners to collect fault recording data 002–1.16 on the Bulk-Power System. Accordingly,
and parameters of that data. we determine that Reliability Standard
D. Notice of Proposed Rulemaking
Requirement R5 through Requirement PRC–002–2 satisfies the relevant
R9 lay out thresholds where dynamic 10. On April 16, 2015, the directive in Order No. 693.20
disturbance recording data are required Commission issued a Notice of
Proposed Rulemaking proposing to 14. We address below Bonneville’s
and provide more specifics on its comments regarding the methodology
collection.14 Requirement R10 requires approve Reliability Standard PRC–002–
2.17 The NOPR also proposed to used in Reliability Standard PRC–002–
transmission owners and generation 2 to identify bulk electric system buses
owners to time synchronize the approve the associated violation risk
factors and violation severity levels, that require data recording and, in
recordings. According to NERC, Section V below, APPA’s comments
Requirement R10 provides the implementation plan, and effective date
proposed by NERC. regarding the NOPR’s Regulatory
synchronization requirements in
11. In response to the NOPR, NERC Flexibility Act certification.
response to Recommendation No. 28
from the final report on the August 2003 filed initial comments in support of the Methodology for Identifying Applicable
blackout issued by the U.S.-Canada NOPR. Bonneville Power Bulk Electric System Buses NOPR
Power System Outage Task Force Administration (Bonneville) and
(Blackout Report).15 Requirement R11 American Public Power Association 15. The NOPR proposed to approve
requires transmission owners and (APPA) filed comments addressing Reliability Standard PRC–002–2 because
generation owners to provide sequence aspects of Reliability Standard PRC– the Reliability Standard enhances
of events recording, fault recording and 002–2 and the NOPR.18 NERC filed reliability by imposing mandatory
dynamic disturbance recording data reply comments in response to requirements concerning the monitoring
upon request and establishes specific Bonneville and APPA’s comments. and reporting of disturbances and
guidelines to ensure that data can be Below, we address the issues raised in provides greater continent-wide
used in the analysis of events. Bonneville and APPA’s comments. consistency regarding collection
Requirement R12 requires transmission methods for data used in the analysis of
II. Discussion disturbances on the Bulk-Power System.
owners and generation owners to restore
the recording capability of the 12. Pursuant to FPA section 215(d)(2), The NOPR did not raise concerns
equipment used to record disturbances, the Commission approves Reliability regarding the methodology used in
if this capability is interrupted. Standard PRC–001–2 as just, reasonable, Reliability Standard PRC–002–2 for
9. NERC proposed an implementation not unduly discriminatory or identifying bulk electric system buses
plan that includes an effective date for preferential, and in the public interest. that require data recording.
Reliability Standard PRC–002–2 that is We also approve the associated
violation risk factors, violation severity Comments
the first day of the first calendar quarter
that is six months after the date that the levels, implementation plan, and 16. Bonneville states that it supports
effective date proposed by NERC. In using digital fault recorders for
14 NERC Petition, Ex. A (Proposed Reliability addition, we approve the retirement of sequence of events recordings and fault
Standard PRC–002–2), Attachment 1, Step 8 states: Reliability Standard PRC–018–1 due to recordings, but Bonneville does not
[Sequence of events recordings] and [fault its consolidation with Reliability support the methodology used to
recording] data is required at additional [bulk Standard PRC–002–2.19
electric system] buses on the list determined in Step identify bulk electric system buses that
6. The aggregate of the number of [bulk electric
13. Reliability Standard PRC–002–2 require data recording.21 Bonneville
system] buses determined in Step 7 and this Step enhances reliability by imposing claims that NERC’s petition did not
will be at least 20 percent of the [bulk electric mandatory requirements concerning the provide a technical justification for the
system] buses determined in Step 6. monitoring and reporting of
The additional [bulk electric system] buses are
1,500 Mega Volt Amps (MVA)
disturbances. Reliability Standard PRC– calculated three-phase short circuit
selected, at the [t]ransmission [o]wner’s discretion,
to provide maximum wide-area coverage for 002–2 provides greater continent-wide threshold in Reliability Standard PRC–
[Sequence of events recordings] and [fault consistency regarding collection 002–2.22 Bonneville states that previous
recording] data. The following [bulk electric methods for data used in the analysis of drafts of the Reliability Standard ‘‘used
system] bus locations are recommended:
Electrically distant buses or electrically distant 16 Id.
more logical criteria that the industry
at Ex. B (Implementation Plan).
from other [disturbance monitoring equipment] 17 Disturbance
has utilized in the past, such as the
Monitoring and Reporting
devices.
Requirements Reliability Standard, Notice of number of lines connected to a bus.’’ 23
Voltage sensitive areas. Proposed Rulemaking, 80 FR 22,441 (Apr. 22,
Cohesive load and generation zones.
17. Bonneville also contends that the
2015), 151 FERC ¶ 61,042 (2015) (NOPR).
[Bulk electric system] buses with a relatively high 18 Mr. Eric S. Morris’s comments did not
methodology used in Reliability
number of incident [t]ransmission circuits. specifically address issues concerning Reliability Standard PRC–002–2 does not allow for
[Bulk electric system] buses with reactive power Standard PRC–002–2 or the NOPR. adequate consideration of the unique
devices. 19 As noted above, the Commission in Order No. characteristics of an individual utility’s
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Major [f]acilities interconnecting outside the 693 did not approve proposed Reliability Standard
[t]ransmission [o]wner’s area. PRC–002–1 but, rather, took no action on the 20 Order No. 693, FERC Stats. and Regs. ¶ 31,242
15 NERC Petition at 35–36 (quoting U.S.-Canada Reliability Standard pending the receipt of
Power System Outage Task Force, Final Report on additional information. Order No. 693, FERC Stats. at P 1456 (‘‘the ERO should consider whether
the August 14, 2003 Blackout in the United States and Regs. ¶ 31,242 at P 1456. Accordingly, with the greater consistency can be achieved’’ regarding
and Canada: Causes and Recommendations at 162 approval of Reliability Standard PRC–002–2, disturbance monitoring and reporting).
21 Bonneville Comments at 2–3.
(Apr. 2004), available at http://energy.gov/sites/ proposed Reliability Standard PRC–002–1 is
22 Id. at 3.
prod/files/oeprod/DocumentsandMedia/ ‘‘retired,’’ i.e., withdrawn, and no longer pending
BlackoutFinal-Web.pdf). before the Commission. 23 Id.
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![57706 Federal Register / Vol. 80, No. 186 / Friday, September 25, 2015 / Rules and Regulations
system.24 Bonneville acknowledges that PRC–002–2 to allow for the engineering requirements imposed by agency
Reliability Standard PRC–002–2, judgment of a transmission owner to rules.37 Upon approval of a collection(s)
Requirement R1 (in Attachment 1, Step account for the unique characteristics of of information, OMB will assign an
8) allows for the selection of additional its system and to ensure adequate data OMB control number and an expiration
bulk electric system buses ‘‘at the capture for proper event analysis.33 date. Respondents subject to the filing
Transmission Owner’s discretion, to NERC notes that Step 8 also provides requirements of a rule will not be
provide maximum wide-area coverage criteria to guide an entity’s decision and penalized for failing to respond to these
for [sequence of events] and [fault that, given this objective criteria, collections of information unless the
recording] data.’’ 25 However, auditors will have a firm basis to assess collections of information display a
Bonneville contends that such whether the transmission owner valid OMB control number.
discretion ‘‘may not result in consistent satisfied its obligation under Step 8.34 In 22. Public Reporting Burden: The
or repeatable results.’’ 26 Bonneville also response to Bonneville’s alternative number of respondents below is based
questions how this provision would be approach, NERC contends that the on an examination of the NERC
audited.27 Bonneville recommends selection methodology in Reliability compliance registry for transmission
replacing the methodology in Reliability Standard CIP 005–5.1 contemplates owners and generation owners and the
Standard PRC–002–2 with an existing cybersecurity issues and does not estimation of how many entities from
methodology used in other Reliability contemplate the optimum location of that registry will be affected. At the time
Standards to identify critical facilities disturbance monitoring.35 of Commission review of Reliability
and the bulk electric system buses Standard PRC–002–2, 324 transmission
Commission Determination
associated with those facilities, such as owners and 915 generation owners in
the high, medium, and low impact 20. We are not persuaded by the United States are registered in the
designations used in Reliability Bonneville’s concerns regarding the NERC compliance registry. The
Standard CIP–005–5.1.28 methodology used to identify bulk Commission notes that many generation
18. In its reply comments, NERC electric system buses that require data sites share a common generation owner.
states that Reliability Standard PRC– recording. As described in NERC’s reply Due to the nature of this task, it is likely
002–2 provides a technically sound comments, NERC has provided adequate generator owners will manage this
basis for identifying which buses technical justification, through the use information aggregation task using a
require data collection.29 NERC of survey data and statistical analysis, centralized staff. Therefore, we estimate
contends that MVA levels more for the 1,500 MVA threshold in that one-third of the generation owners
accurately measure the reliability Reliability Standard PRC–002–2. We (305) will have to meet the requirements
impact of a particular bus than counting also find that the methodology in contained in Reliability Standard PRC–
the number of transmission lines Reliability Standard PRC–002–2 002–2. We estimate that all 324
connected to the bus.30 NERC explains adequately addresses the unique registered transmission owners will
that that the standard drafting team characteristics of individual utility need to comply with requirement R1 in
established the MVA threshold by systems by allowing for the selection of Reliability Standard PRC–002–2 once
sending an information request to all additional buses in Step 8 and that the every five years. We further estimate
transmission owners and generator decisions to add buses under Step 8 are that two-thirds (216) of the registered
owners requesting data on bus fault auditable. transmission owners will need to
magnitude for three-phase bolted faults comply with the remaining
III. Information Collection Statement
on buses operated at 100 kV and requirements contained in Reliability
higher.31 NERC states that the standard 21. The collection of information Standard PRC–002–2. Finally, we find
drafting team performed a median value addressed in this final rule is subject to the number of ‘‘Responsible Entities’’ in
analysis and concluded that the review by the Office of Management and the United States to equal 50, based on
appropriate threshold is 1,500 MVA.32 Budget (OMB) under section 3507(d) of the NERC compliance registry.38 The
19. NERC explains that it included the Paperwork Reduction Act of 1995.36 following table illustrates the burden to
Step 8 of the bus identification OMB’s regulations require approval of be applied to the information
methodology in Reliability Standard certain information collection collection.39
Annual
Requirement and Total Average burden
Number of number of
respondent number of hours & cost per Annual burden hours & total annual cost
respondents responses per
category for responses response 40 (3)*(4)=(5)
(1) respondent
PRC–002–2 (1)*(2)=(3) (4)
(2)
R1. Each Transmission 324 41 0.2 64.8 (Eng.) 24 hrs. 2,333 hrs. (1,555 Eng., 778 R.K.);
Owner. ($1,568.16); (R.K.) 12 $127,605 ($101,618 Eng., $25,987
hrs. ($401.04). R.K.).
24 Id. 36 44 U.S.C. 3507(d). Response * $/hour = Cost per Response. The
25 Id. 37 5 CFR 1320.11. $65.34/hour figure for an engineer and the $33.42/
26 Id. 38 As discussed above, Reliability Standard PRC– hour figure for a record clerk are based on the
27 Id. 002–2 defines the term ‘‘Responsible Entity’’ to average salary plus benefits data from Bureau of
28 Id.
include planning coordinators in the Eastern Labor Statistics.
at 4.
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Interconnection, the reliability coordinator in the 41 In the NOPR, we estimated that each
29 NERC Reply Comments at 5–6. Western Interconnection, and planning
30 Id. at 6–7. coordinators or the reliability coordinator in the transmission owner would respond annually. In
31 Id. at 7–8. ERCOT Interconnection. this final rule, we have revised the table to reflect
39 In the burden table, engineering is abbreviated that Reliability Standard PRC–002–2 requires
32 Id. at 8.
as ‘‘Eng.’’ and record keeping is abbreviated as transmission owners to comply every fifth year. We
33 Id. at 8–9.
‘‘R.K.’’ have revised the calculated values in column 5 of
34 Id. at 9. 40 The estimates for cost per response are derived this row and the total row accordingly.
35 Id. using the following formula: Burden Hours per
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![Federal Register / Vol. 80, No. 186 / Friday, September 25, 2015 / Rules and Regulations 57707
Annual
Requirement and Total Average burden
Number of number of
respondent number of hours & cost per Annual burden hours & total annual cost
respondents responses per
category for responses response 40 (3)*(4)=(5)
(1) respondent
PRC–002–2 (1)*(2)=(3) (4)
(2)
R2. Each Transmission 521 1 521 (Eng.) 10 hrs. ($653.40); 7,294 hrs. (5210 Eng., 2084 R.K.);
Owner and Generator (R.K.) 4 hrs. ($133.68). $410,069 ($340,422 Eng., $69,647
Owner. R.K.).
R3 & R4. Each Trans- 521 1 521 (Eng.) 10 hrs. ($653.40); 7,294 hrs. (5210 Eng., 2084 R.K.);
mission Owner and (R.K.) 4 hrs. ($133.68). $410,069 ($340,422 Eng., $69,647
Generator Owner. R.K.).
R5. Each Responsible 50 1 50 (Eng.) 24 hrs. 1,800 hrs. (1200 Eng., 600 R.K.);
Entity. ($1,568.16); (R.K.) 12 $98,460 ($78,408 Eng., $20,052 R.K.).
hrs. ($401.04).
R6. Each Transmission 216 1 216 (Eng.) 10 hrs. ($653.40); 3,024 hrs. (2160 Eng., 864 R.K.);
Owner. (R.K.) 4 hrs. ($133.68). $170,009 ($141,134 Eng., $28,875
R.K.).
R7. Each Generator 305 1 305 (Eng.) 10 hrs. ($653.40); 4,270 hrs. (3050 Eng., 1220 R.K.);
Owner. (R.K.) 4 hrs. ($133.68). $240,059 ($199,287 Eng., $40,772
R.K.).
R8. Each Transmission 521 1 521 (Eng.) 10 hrs. ($653.40); 7,294 hrs. (5210 Eng., 2084 R.K.);
Owner and Generator (R.K.) 4 hrs. ($133.68). $410,069 ($340,422 Eng., $69,647
Owner. R.K.).
R9. Each Transmission 521 1 521 (Eng.) 10 hrs. ($653.40); 7,294 hrs. (5210 Eng., 2084 R.K.);
Owner and Generator (R.K.) 4 hrs. ($133.68). $410,069 ($340,422 Eng., $69,647
Owner. R.K.).
R10. Each Transmission 521 1 521 (Eng.) 10 hrs. ($653.40); 7,294 hrs. (5210 Eng., 2084 R.K.);
Owner and Generator (R.K.) 4 hrs. ($133.68). $410,069 ($340,422 Eng., $69,647
Owner. R.K.).
R11. Each Transmission 521 1 521 (Eng.) 8 hrs. ($522.72); 6,252 hrs. (4168 Eng., 2084 R.K.);
Owner and Generator (R.K.) 4 hrs. ($133.68). $341,984 ($272,337 Eng., $69,647
Owner. R.K.).
R12. Each Transmission 52 1 52 (Eng.) 10 hrs. ($653.40); 728 hrs. (520 Eng., 208 R.K.); $40,928
Owner and Generator (R.K.) 4 hrs. ($133.68). ($33,977 Eng., $6,951 R.K.).
Owner 42.
Total ....................... .................... ........................ ........................ ........................................ 54,877 hrs. (38,703 Eng., 16,174 R.K.);
$3,069,390 ($2,528,871 Eng.,
$540,519 R.K.).
Title: FERC–725G2 43 Disturbance requirements by contacting the Federal categorically excluded certain actions
Monitoring and Reporting Energy Regulatory Commission, Office from this requirement as not having a
Requirements. of the Executive Director, 888 First significant effect on the human
Action: Revision to existing Street, NE., Washington, DC 20426 environment. Included in the exclusion
collection. [Attention: Ellen Brown, email: are rules that are clarifying, corrective,
OMB Control No: 1902–0281. DataClearance@ferc.gov, phone: (202) or procedural or that do not
Respondents: Business or other for 502–8663, fax: (202) 273–0873]. substantially change the effect of the
profit, and not for profit institutions. 24. Comments on the requirements of regulations being amended.45 The
Frequency of Responses: Annually. this rule may also be sent to the Office actions here fall within this categorical
Necessity of the Information: of Management and Budget, Office of exclusion in the Commission’s
Reliability Standard PRC–002–2 sets Information and Regulatory Affairs
forth requirements for disturbance regulations.
[Attention: Desk Officer for the Federal
monitoring and reporting requirements Energy Regulatory Commission]. For V. Regulatory Flexibility Act
that will ensure adequate data are security reasons, comments should be
available to facilitate analysis of bulk sent by email to OMB at the following 26. The Regulatory Flexibility Act of
electric system disturbances. email address: oira_submission@ 1980 (RFA) 46 generally requires a
Internal review: The Commission has omb.eop.gov. Please reference OMB description and analysis of proposed
assured itself, by means of its internal Control No. 1902–0281, FERC–725G2 rules that will have significant
review, that there is specific, objective and Docket No. RM15–4–000 in your economic impact on a substantial
support for the burden estimates submission. number of small entities. The Small
associated with the information Business Administration (SBA) revised
requirements. IV. Environmental Analysis its size standards (effective January 22,
23. Interested persons may obtain 25. The Commission is required to 2014) for electric utilities from a
information on the reporting prepare an Environmental Assessment standard based on megawatt hours to a
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or an Environmental Impact Statement standard based on the number of
42 The Commission estimates that 10 percent (or
for any action that may have a employees, including affiliates.
52) of the 521 registered entities will have to restore
recording capability or institute a corrective action significant adverse effect on the human
plan (CAP) each year. environment.44 The Commission has 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs.,
43 FERC–725G2 is temporarily being used because Regulations Preambles 1986–1990 ¶ 30,783 (1987).
45 18 CFR 380.4(a)(2)(ii).
FERC–725G (OMB Control No. 1902–0252) is 44 Regulations Implementing the National
currently pending review at OMB. Environmental Policy Act of 1969, Order No. 486, 46 5 U.S.C. 601–612.
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![57708 Federal Register / Vol. 80, No. 186 / Friday, September 25, 2015 / Rules and Regulations
NOPR analysis.51 APPA states that its such as other buses.60 NERC contends
27. The Commission proposed that, unnamed member, a municipal joint that APPA’s comment that the
under SBA’s new standards, some action agency, has determined that ten Reliability Standard should identify
transmission owners and generation of its members qualify as small entities either regional or sub-regional bus
owners might fall under the following and that eight of these entities would be locations as appropriate for disturbance
category and associated size threshold: subject to the requirements of Reliability monitoring is flawed because
electric bulk power transmission and Standard PRC–002–2. APPA further transmission owners are in the best
control at 500 employees; hydroelectric claims that ‘‘if the Commission were to position to determine the location of the
power generation at 500 employees; extrapolate from the information buses due to their knowledge of their
fossil fuel electric power generation at outlined above to the estimated 52 small systems.61
750 employees; nuclear electric power [transmission operators] across the
Commission Determination
generation at 750 employees. country, it would clearly show that a
28. The Commission estimated that substantial number of small entities are 32. The RFA requires an analysis
the number of applicable small entities affected by proposed reliability standard when a rule will have significant
will be minimal due to the gross MVA PRC–002–2.’’ 52 economic impact on a substantial
thresholds embedded into Reliability 30. APPA also contends that number of small entities. The comments
Standard PRC–002–2. The gross MVA Reliability Standard PRC–002–2 will submitted by APPA do not justify
thresholds focus information collection place an undue burden on small entities altering the RFA certification proposed
on bulk electric system facilities having because they do not currently have in the NOPR.
Interconnection-wide impacts worthy of sequence of events recording or fault 33. We are not persuaded by APPA’s
collecting. We estimated that Reliability recording data recorders installed on claims regarding the number of small
Standard PRC–002–2 will apply to their bulk electric system buses.53 APPA entities likely to be affected by
approximately 521 entities in the United contrasts this with larger entities that Reliability Standard PRC–002–2. APPA
States.47 The Commission applied the may have already installed those data relied on an unverified report from a
MVA thresholds above to estimate that recorders.54 APPA also maintains that single unnamed entity to claim that
approximately 52 (or 10 percent) are small entities’ buses likely would not be eight small entities (rather than the two
small entities. The Commission selected for monitoring if they were or three estimated in the NOPR) would
estimated for these small entities, included in a larger data set analyzed on be affected by Reliability Standard PRC–
Reliability Standard PRC–002–2, a wide-area basis.55 APPA further states 002–2. Even if we were to assume that
Requirement R1 may need to be that the methodology in Reliability APPA is correct regarding the eight
evaluated and documented every five Standard PRC–002–2 unduly small entities, we find that eight small
years with costs of $9,847 for each discriminates against small entities entities out of 52 estimated small
evaluation.48 From this set of small because entities with fewer than 10 entities is not a substantial number of
entities, the Commission estimated that qualifying buses will have to monitor a small entities. Further, aside from the
five percent, or only two or three small greater percentage of their buses than number of small entities affected, APPA
entities, may be affected by the other larger entities, which are responsible to does not address the NOPR’s estimate
requirements, i.e., Requirements R2 monitor only 10 percent of their buses.56 that Reliability Standard PRC–002–2
through R12, of Reliability Standard APPA requests that if the Commission will not impose a significant economic
PRC–002–2. The Commission proposed does not require changes to Reliability impact on applicable small entities.
that based on a prior industry-sponsored Standard PRC–002–2, the Commission 34. With respect to APPA’s claim that
survey, annual compliance costs will should direct NERC to provide an Reliability Standard PRC–002–2
average $100,000–$160,000 for entities alternative compliance methodology for imposes ‘‘discriminatory distribution of
subject to these requirements.49 small entities that would allow them to implementation costs on small
find an equally effective method to entities,’’ 62 we agree with NERC that
Comments APPA’s comments are premised on the
gather data from upstream buses to
29. APPA contends that the NOPR reduce the burden on small entities.57 incorrect assertion that Reliability
understates the impact that Reliability 31. In its reply comments, NERC Standard PRC–002–2 requires the
Standard PRC–002–2 will have on small contends that Reliability Standard PRC– installation of recording devices. As
entities by underestimating the number 002–2 does not place an undue burden noted in NERC’s reply comments,
or small entities affected and by not on small entities.58 NERC states that Reliability Standard PRC–002–2 gives
addressing the ‘‘discriminatory Reliability Standard PRC–002–2 does applicable entities ‘‘the flexibility to
distribution of implementation costs’’ not explicitly require the installation of either install devices on their systems
on small entities.50 APPA bases its fault recording data recorders on all or, to reduce their financial burden,
assertion on information provided by identified buses.59 NERC explains that obtain the necessary data through other
one APPA member and not on a formal transmission owners need not install means (e.g., by working with their
survey of its members or independent devices to meet the requirements of interconnected neighbors).’’ 63
Reliability Standard PRC–002–2 as long 35. Accordingly, we certify that
47 This number consists of the 216 transmission
as the transmission owner can obtain Reliability Standard PRC–002–2 will not
owners and the 305 generation owners; however, it
does not include the 50 ‘‘Responsible Entities.’’ See the required data from other sources have a significant economic impact on
supra n.38. a substantial number of small entities.
48 The costs associated with evaluation will occur 51 Id.
VI. Document Availability
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every fifth year. By dividing the estimated costs of 52 Id.
evaluation by five, we estimate the annual cost to 53 Id. 36. In addition to publishing the full
at 3–4.
be $1,969.40.
49 See NERC Petition Ex. G (Record of
54 Id. at 4. text of this document in the Federal
55 Id. at 4–6.
Development) at 257 of pdf file, providing link to:
56 Id. at 6–7. 60 Id. at 9–10.
NERC Cost Effective Analysis Process (CEAP) Pilot
57 Id. at 7. 61 Id. at 11.
for NERC Project 2007–11—Disturbance
Monitoring—PRC–002–2 at 8 (Apr. 9, 2014). 58 NERC Reply Comments at 9–11. 62 Id. at 3.
50 APPA Comments at 3. 59 Id. at 9. 63 Id. at 10.
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![Federal Register / Vol. 80, No. 186 / Friday, September 25, 2015 / Rules and Regulations 57709
Register, the Commission provides all SUMMARY: This document contains final a minimum level of ‘‘qualifying
interested persons an opportunity to regulations regarding the standards for distributions’’ (as defined in section
view and/or print the contents of this making a good faith determination that 4942 of the Code) each year and must
document via the Internet through the a foreign organization is a charitable avoid making taxable expenditures (as
Commission’s Home Page (http:// organization that is not a private defined in section 4945). A foundation
www.ferc.gov) and in the Commission’s foundation, so that grants made to that generally may treat grants made for
Public Reference Room during normal foreign organization may be qualifying charitable purposes to certain foreign
business hours (8:30 a.m. to 5:00 p.m. distributions and not taxable organizations as qualifying distributions
Eastern time) at 888 First Street, NE., expenditures. The regulations also make under section 4942 if the foundation
Room 2A, Washington, DC 20426. additional changes to conform the final makes a good faith determination that
37. From the Commission’s Home regulations to statutory amendments the foreign organization is an
Page on the Internet, this information is made by the Deficit Reduction Act of organization described in sections
available on eLibrary. The full text of 1984 and the Pension Protection Act of 501(c)(3) and 509(a)(1), (a)(2), or (a)(3) (a
this document is available on eLibrary 2006. The regulations will affect private ‘‘public charity’’) that is not a
in PDF and Microsoft Word format for foundations seeking to make good faith ‘‘disqualified supporting organization’’
viewing, printing, and/or downloading. determinations. described in section 4942(g)(4)(A)(i) or
To access this document in eLibrary, DATES: Effective date: These regulations (ii), or is an organization described in
type the docket number excluding the are effective on September 25, 2015. sections 501(c)(3) and 4942(j)(3) (an
last three digits of this document in the Applicability date: For the dates of ‘‘operating foundation,’’ also known as
docket number field. applicability, see §§ 53.4942(a)–3(f) and a ‘‘private operating foundation’’).
38. User assistance is available for 53.4945–5(f)(3). Similarly, foundations may treat grants
eLibrary and the Commission’s Web site FOR FURTHER INFORMATION CONTACT: for charitable purposes to certain foreign
during normal business hours from Ward L. Thomas, (202) 317–6173 (not a organizations as other than taxable
FERC Online Support at 202–502–6652 toll-free number). expenditures under section 4945
(toll free at 1–866–208–3676) or email at SUPPLEMENTARY INFORMATION: without having to exercise expenditure
ferconlinesupport@ferc.gov, or the responsibility if the foundation makes a
Public Reference Room at (202) 502– Paperwork Reduction Act good faith determination that the foreign
8371, TTY (202) 502–8659. Email the The collection of information in these organization is a public charity (other
Public Reference Room at final regulations is the good faith than a disqualified supporting
public.referenceroom@ferc.gov. determination set forth in §§ 53.4942(a)– organization) or is an operating
3(a)(6) and 53.4945–5(a)(5). The foundation described in section
VII. Effective Date and Congressional collection of information contained in 4940(d)(2) (an ‘‘exempt operating
Notification these regulations is reflected in the foundation’’). In this preamble, a foreign
39. The final rule is effective collection of information for Form 990– grantee that is a public charity or
November 24, 2015. The Commission PF, ‘‘Return of Private Foundation or operating foundation that may receive a
has determined, with the concurrence of Section 4947(a)(1) Trust Treated as qualifying distribution (or a grant for
the Administrator of the Office of Private Foundation,’’ that has been which expenditure responsibility is not
Information and Regulatory Affairs of reviewed and approved by the Office of required) is referred to as a ‘‘qualifying
OMB, that this rule is not a ‘‘major rule’’ Management and Budget in accordance public charity.’’ 2 This good faith
as defined in section 351 of the Small with the Paperwork Reduction Act of determination is commonly known as
Business Regulatory Enforcement 1995 (44 U.S.C. 3507(d)), under control an ‘‘equivalency determination.’’
Fairness Act of 1996. This final rule is number 1545–0052. An agency may not Longstanding regulations under both
being submitted to the Senate, House, conduct or sponsor, and a person is not sections 4942 and 4945 provide that a
and Government Accountability Office. required to respond to, a collection of foundation will ordinarily be
information unless it displays a valid considered to have made a ‘‘good faith
By the Commission. determination’’ if the determination is
control number assigned by the Office of
Issued: September 17, 2015. based on an affidavit of the grantee or
Management and Budget. Books or
Nathaniel J. Davis, Sr.,
records relating to a collection of on an opinion of counsel of either the
Deputy Secretary. information must be retained as long as grantor or the grantee. The affidavit or
[FR Doc. 2015–24278 Filed 9–24–15; 8:45 am] their contents might become material in opinion must set forth sufficient facts
BILLING CODE 6717–01–P the administration of any internal concerning the operations and support
revenue law. of the grantee for the IRS to determine
that the grantee would be likely to
Background qualify as a public charity or an
DEPARTMENT OF THE TREASURY
This document contains amendments operating foundation. See
Internal Revenue Service to 26 CFR part 53 under chapter 42, §§ 53.4942(a)–3(a)(6) and 53.4945–
subtitle D of the Internal Revenue Code 5(a)(5). In this preamble, we refer to this
26 CFR Part 53 (Code). To avoid certain excise taxes rule, which gives assurance to
under chapter 42, a private foundation
[TD 9740] (referred to in this preamble as a 2 The class of qualifying public charities for
purposes of section 4945 is a slightly smaller subset
RIN 1545–BL23
‘‘foundation’’ or ‘‘grantor’’) 1 must make of those for purposes of section 4942. Thus, grants
mstockstill on DSK4VPTVN1PROD with RULES
to foreign organizations determined to be operating
1 The regulations under section 4942 refer to foundations that are not exempt operating
Reliance Standards for Making Good
‘‘distributing foundations’’ making distributions to foundations, and grants by operating foundations to
Faith Determinations ‘‘donee organizations,’’ whereas the regulations foreign organizations determined to be disqualified
under section 4945 refer to ‘‘grantor foundations’’ supporting organizations, may be qualifying
AGENCY: Internal Revenue Service (IRS), making or paying grants to ‘‘grantee organizations.’’ distributions under section 4942 but the grantor
Treasury. For simplicity, this preamble refers to grantors must nevertheless exercise expenditure
ACTION: Final regulations. making grants or distributions to grantee responsibility to avoid excise taxes under section
organizations, in reference to both Code sections. 4945 on such grants.
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Document Created: 2018-02-26 10:19:35
Document Modified: 2018-02-26 10:19:35
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | Effective Date: This rule will become effective November 24, 2015. | |
| Contact | Juan R. Villar (Technical Information), Office of Electric Reliability, Division of Reliability Standards and Security, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, Telephone: (202) 536-2930, [email protected] Alan Rukin (Legal Information), Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, Telephone: (202) 502-8502, [email protected] | |
| FR Citation | 80 FR 57704 |
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