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)

Page Range		57704-57709
FR Document		2015-24278

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.

Federal Register, Volume 80 Issue 186 (Friday, September 25, 2015)

[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]]

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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.

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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, Juan.Villar@ferc.gov.
Alan Rukin (Legal Information), Office of the General Counsel, Federal
Energy Regulatory Commission, 888 First Street NE., Washington, DC
20426, Telephone: (202) 502-8502, Alan.Rukin@ferc.gov.

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.
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\1\ 16 U.S.C. 824o.
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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\
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\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).
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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\
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\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.
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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\
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\7\ Id. P 1451.
\8\ Id. P 1456.
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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\
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\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.
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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\
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\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.
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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.
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\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).
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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\
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\16\ Id. at Ex. B (Implementation Plan).
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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.
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\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).
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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.
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\18\ Mr. Eric S. Morris's comments did not specifically address
issues concerning Reliability Standard PRC-002-2 or the NOPR.
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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\
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\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.
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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\
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\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).
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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\
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\21\ Bonneville Comments at 2-3.
\22\ Id. at 3.
\23\ Id.
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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\
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\24\ Id.
\25\ Id.
\26\ Id.
\27\ Id.
\28\ Id. at 4.
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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\
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\29\ NERC Reply Comments at 5-6.
\30\ Id. at 6-7.
\31\ Id. at 7-8.
\32\ Id. at 8.
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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\
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\33\ Id. at 8-9.
\34\ Id. at 9.
\35\ Id.
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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.
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\36\ 44 U.S.C. 3507(d).
\37\ 5 CFR 1320.11.
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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\
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\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.

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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)
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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.).
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Total................... ........... .............. .............. ............... 54,877 hrs. (38,703
Eng., 16,174 R.K.);
$3,069,390
($2,528,871 Eng.,
$540,519 R.K.).
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Title: FERC-725G2 \43\ Disturbance Monitoring and Reporting
Requirements.
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\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.
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Action: Revision to existing collection.
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\43\ FERC-725G2 is temporarily being used because FERC-725G (OMB
Control No. 1902-0252) is currently pending review at OMB.
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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: DataClearance@ferc.gov, 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:
oira_submission@omb.eop.gov. 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.
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\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).
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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.
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\46\ 5 U.S.C. 601-612.

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[[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\
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\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
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.

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

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
mstockstill on DSK4VPTVN1PROD with RULES

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
mstockstill on DSK4VPTVN1PROD with RULES

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

80 FR 57704 - Disturbance Monitoring and Reporting Requirements Reliability Standard

DEPARTMENT OF ENERGYFederal Energy Regulatory Commission

Federal Register Volume 80, Issue 186 (September 25, 2015)

DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission