82 FR 60134 - Grid Resiliency Pricing Rule

DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission

Federal Register Volume 82, Issue 242 (December 19, 2017)

Page Range		60134-60135
FR Document		2017-27187

On October 10, 2017, the Department of Energy (the Department or DOE) published a proposed Grid Resiliency Pricing Rule for final action by the Federal Energy Regulatory Commission (Commission or FERC). Secretary of Energy Rick Perry (the Secretary) directed FERC either to publish an immediately-effective interim rule or to take final action on the proposed rule within 60 days of publication, thereby establishing a deadline of December 11, 2017. By letter dated December 7, 2017, the Commission requested an extension of the proposed rule's deadline. By letter dated December 8, 2017, the Secretary granted the Commission's request. The Secretary's letter is set forth in full below.

Federal Register, Volume 82 Issue 242 (Tuesday, December 19, 2017)

[Federal Register Volume 82, Number 242 (Tuesday, December 19, 2017)]
[Proposed Rules]
[Pages 60134-60135]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-27187]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 35

[Docket No. RM18-1-000]


Grid Resiliency Pricing Rule

AGENCY: Federal Energy Regulatory Commission, Department of Energy.

ACTION: Notification of extension of time to take final action on the 
proposed rule.

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SUMMARY: On October 10, 2017, the Department of Energy (the Department 
or DOE) published a proposed Grid Resiliency Pricing Rule for final 
action by the Federal Energy Regulatory Commission (Commission or 
FERC). Secretary of Energy Rick Perry (the Secretary) directed FERC 
either to publish an immediately-effective interim rule or to take 
final action on the proposed rule within 60 days of publication, 
thereby establishing a deadline of December 11, 2017. By letter dated 
December 7, 2017, the Commission requested an extension of the proposed 
rule's deadline. By letter dated December 8, 2017, the Secretary 
granted the Commission's request. The Secretary's letter is set forth 
in full below.

DATES: The Commission is granted an extension for final action on the 
proposed rule published in the Federal Register on October 10, 2017 (82 
FR 46940) by Wednesday, January 10, 2018.

FOR FURTHER INFORMATION CONTACT: Ronald (R.J.) Colwell, U.S. Department 
of Energy, Office of the Assistant General Counsel for Electricity and 
Fossil Energy (GC-76), Forrestal Building, Room 6D-033, 1000 
Independence Avenue SW, Washington, DC 20585; (202) 586-9507; email 
[email protected].

SUPPLEMENTARY INFORMATION: On October 10, 2017, pursuant to authority 
in section 403 of the Department of Energy Organization Act, 42 U.S.C. 
7173, the Department published a proposed Grid Resiliency Pricing Rule 
for final action by the Commission. 82 FR 46940. The Secretary proposed 
that the Commission exercise its authority under the Federal Power Act 
(FPA) to establish just and reasonable rates for wholesale electricity 
sales. Under the proposal, the Commission would impose rules on 
Commission-approved independent system operators (ISOs) and regional 
transmission organizations (RTOs) to ensure that certain reliability 
and resilience attributes of electric generation resources are fully 
valued. The Secretary directed the Commission to take final action on 
this proposal within 60 days of publication of the proposed rule in the 
Federal Register or, in the alternative, to issue the rule as an 
interim final rule immediately, with provision for later modifications 
after consideration of public comments. By letter dated December 7, 
2017, the Commission requested an extension of time to take final 
action on the proposed rule (the letter is available at https://www.ferc.gov/DOE-letter.pdf). By letter dated December 8, 2017, the 
Secretary granted FERC's request, setting a new deadline of Wednesday, 
January 10, 2018, for action by the Commission. In the letter, the 
Secretary stated that the Commission is nevertheless authorized to act 
at any time prior to this deadline and urged the Commission to act 
expeditiously. The Secretary's letter is set forth, in full, below.

    Issued in Washington, DC, on December 13, 2017.
Bernard L. McNamee,
Deputy General Counsel for Energy Policy, Office of the General 
Counsel, U.S. Department of Energy.

December 8, 2017

The Honorable Kevin J. McIntyre, Chairman
Federal Energy Regulatory Commission
888 First Street, NE
Washington, DC 20426

Re: The Secretary of Energy's Granting of the Request for an 
Extension of Time for the Commission to Take Final Action on the 
Proposed Grid Reliability and Resiliency Pricing Rule, FERC Docket 
No. RM18-1-000

Dear Chairman McIntyre:
    On December 7, I received your request for an extension of time 
(``Extension Request'') for the Federal Energy Regulatory Commission 
(``Commission'') to take final action on the proposed Grid 
Resiliency Pricing Rule in the Notice of Proposed Rulemaking 
(``Notice'' or ``Proposal'') published in the Federal Register on 
October 10, and referenced in the above-captioned FERC docket.
    In the Notice and in my accompanying letter of September 28, I 
made clear that there is a problem today and that urgent action is 
required to reform the Commission's market rules. I stated that, in 
light of serious threats to the nation's electricity grid, it is the 
Commission's immediate responsibility to take action to ensure that 
generation resources with on-site fuel supplies and the ability to 
provide essential energy and ancillary reliability services 
including voltage support, frequency services, operating reserves, 
and reactive power are fully valued and, in particular, to exercise 
its authority to develop new market rules that will achieve this 
urgent objective. In the letter I further stated that failure to act 
expeditiously would be unjust, unreasonable, and contrary to the 
public interest. The voluminous comments filed in the record of this 
proceeding provide substantial evidence of, and otherwise confirm, 
the threat to the nation's electricity grid and the urgent need for 
Commission action to reform market rules to preserve fuel-secure 
generation resources.
    Because of the urgency of this matter, the 60-day deadline 
imposed in the Notice is reasonable within the meaning of Section 
403 of the Department of Energy Organization Act and is otherwise 
compliant with applicable law. The better course would be for the 
Commission to adopt the Proposal within this reasonable deadline. If 
the Commission fails to adopt the Proposal within the original

[[Page 60135]]

deadline for the reasons stated in the Extension Request, the 
security of our nation's electric grid will continue to be at risk.
    However, I understand that Section 403 assigns the Commission 
the responsibility to take final action on the Proposal within the 
reasonable time period set forth by me and it is solely within my 
authority under Section 403 to grant an extension of time for final 
action. On the assumption that the Commission cannot act on the 
proposal within the 60-day deadline, I hereby grant the request for 
an extension of time for the Commission to deliberate and take final 
action on the Grid Resiliency Pricing Rule for an additional 30 
days.\1\ The new deadline is Wednesday, January 10, 2018. The 
Commission is nevertheless authorized to act at any time prior to 
this deadline and I urge the Commission to act expeditiously. During 
this additional period, the Department will continue to examine all 
options within my authority under the Department of Energy 
Organization Act, the Federal Power Act, and any other authorities 
to take remedial action as necessary to ensure the security of the 
nation's electric grid.
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    \1\ This extension is granted pursuant to my authority under 
section 403 of the Department of Energy Organization Act, among 
other powers and authorities granted to me by law.
---------------------------------------------------------------------------

    I continue to believe that urgent action must be taken to ensure 
the resilience and security of the electric grid, which is so 
vitally important to the economic and national security of the 
United States. I look forward to the Commission taking final action 
in this matter for the benefit of the American people.

Sincerely,

Rick Perry

[FR Doc. 2017-27187 Filed 12-18-17; 8:45 am]
 BILLING CODE 6450-01-P

60134 Federal Register / Vol. 82, No. 242 / Tuesday, December 19, 2017 / Proposed Rules

Aviation Administration proposes to ACTION: Notification of extension of time www.ferc.gov/DOE-letter.pdf). By letter
amend 14 CFR part 71 as follows: to take final action on the proposed rule. dated December 8, 2017, the Secretary
granted FERC’s request, setting a new
PART 71—DESIGNATION OF CLASS A, SUMMARY: On October 10, 2017, the deadline of Wednesday, January 10,
B, C, D, AND E AIRSPACE AREAS; AIR Department of Energy (the Department 2018, for action by the Commission. In
TRAFFIC SERVICE ROUTES; AND or DOE) published a proposed Grid the letter, the Secretary stated that the
REPORTING POINTS Resiliency Pricing Rule for final action Commission is nevertheless authorized
by the Federal Energy Regulatory to act at any time prior to this deadline
■ 1. The authority citation for 14 CFR Commission (Commission or FERC). and urged the Commission to act
part 71 continues to read as follows: Secretary of Energy Rick Perry (the expeditiously. The Secretary’s letter is
Authority: 49 U.S.C. 106(f), 106(g), 40103, Secretary) directed FERC either to set forth, in full, below.
40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, publish an immediately-effective
interim rule or to take final action on Issued in Washington, DC, on December
1959–1963 Comp., p. 389.
13, 2017.
the proposed rule within 60 days of
§ 71.1 [Amended] publication, thereby establishing a Bernard L. McNamee,
■ 2. The incorporation by reference in deadline of December 11, 2017. By letter Deputy General Counsel for Energy Policy,
14 CFR 71.1 of FAA Order 7400.11B, dated December 7, 2017, the Office of the General Counsel, U.S.
Airspace Designations and Reporting Department of Energy.
Commission requested an extension of
Points, dated August 3, 2017, and the proposed rule’s deadline. By letter December 8, 2017
effective September 15, 2017, is dated December 8, 2017, the Secretary The Honorable Kevin J. McIntyre, Chairman
amended as follows: granted the Commission’s request. The Federal Energy Regulatory Commission
Secretary’s letter is set forth in full 888 First Street, NE
Paragraph 6005 Class E Airspace Areas Washington, DC 20426
Extending Upward From 700 Feet or More below.
Re: The Secretary of Energy’s Granting of the
Above the Surface of the Earth. DATES: The Commission is granted an Request for an Extension of Time for the
* * * * * extension for final action on the Commission to Take Final Action on the
ANM ID E5 Paris, ID [New] proposed rule published in the Federal Proposed Grid Reliability and Resiliency
Register on October 10, 2017 (82 FR Pricing Rule, FERC Docket No. RM18–1–
Bear Lake County Airport, ID 000
(Lat. 42°14′59″ N, long. 111°20′30″ W)
46940) by Wednesday, January 10, 2018.
FOR FURTHER INFORMATION CONTACT: Dear Chairman McIntyre:
That airspace extending upward from 700 On December 7, I received your request for
feet above the surface of Bear Lake County Ronald (R.J.) Colwell, U.S. Department
an extension of time (‘‘Extension Request’’)
Airport within the area bounded by lat. of Energy, Office of the Assistant for the Federal Energy Regulatory
42°29′26″ N, long. 111°36′13″ W; to lat. General Counsel for Electricity and Commission (‘‘Commission’’) to take final
42°29′32″ N, long. 111°28′55″ W; to lat. Fossil Energy (GC–76), Forrestal action on the proposed Grid Resiliency
42°21′52″ N, long. 111°28′07″ W; to the point Building, Room 6D–033, 1000 Pricing Rule in the Notice of Proposed
where the airport 325° bearing intersects the Independence Avenue SW, Washington, Rulemaking (‘‘Notice’’ or ‘‘Proposal’’)
airport 6.6-mile radius; thence clockwise DC 20585; (202) 586–9507; email published in the Federal Register on October
along the 6.6-mile radius of the airport to the ronald.colwell@hq.doe.gov. 10, and referenced in the above-captioned
airport 017° bearing, to lat. 42°34′39″ N, long. FERC docket.
111°19′45″ W; to lat. 42°35′06″ N, long. SUPPLEMENTARY INFORMATION: On
In the Notice and in my accompanying
110°59′38″ W; to lat. 42°08′06″ N, long. October 10, 2017, pursuant to authority letter of September 28, I made clear that there
110°54′19″ W; to lat. 42°05′45″ N, long. in section 403 of the Department of is a problem today and that urgent action is
111°15′34″ W; to the point where the airport Energy Organization Act, 42 U.S.C. required to reform the Commission’s market
150° bearing intersects the 6.6-mile radius of 7173, the Department published a rules. I stated that, in light of serious threats
the airport, thence clockwise along the 6.6- proposed Grid Resiliency Pricing Rule to the nation’s electricity grid, it is the
mile radius of the airport to the airport 226° for final action by the Commission. 82 Commission’s immediate responsibility to
bearing, to lat. 41°55′22″ N, long. 111°25′20″ FR 46940. The Secretary proposed that take action to ensure that generation
W; to lat. 41°55′58″ N, long. 111°44′44″ W; resources with on-site fuel supplies and the
thence to the point of beginning.
the Commission exercise its authority ability to provide essential energy and
under the Federal Power Act (FPA) to ancillary reliability services including
Issued in Seattle, Washington, on establish just and reasonable rates for
December 11, 2017. voltage support, frequency services,
wholesale electricity sales. Under the operating reserves, and reactive power are
Brian J. Johnson, proposal, the Commission would fully valued and, in particular, to exercise its
Acting Group Manager, Operations Support impose rules on Commission-approved authority to develop new market rules that
Group, Western Service Center. independent system operators (ISOs) will achieve this urgent objective. In the
[FR Doc. 2017–27206 Filed 12–18–17; 8:45 am] and regional transmission organizations letter I further stated that failure to act
expeditiously would be unjust, unreasonable,
BILLING CODE 4910–13–P (RTOs) to ensure that certain reliability
and contrary to the public interest. The
and resilience attributes of electric voluminous comments filed in the record of
generation resources are fully valued. this proceeding provide substantial evidence
DEPARTMENT OF ENERGY The Secretary directed the Commission of, and otherwise confirm, the threat to the
to take final action on this proposal nation’s electricity grid and the urgent need
Federal Energy Regulatory within 60 days of publication of the for Commission action to reform market rules
Commission proposed rule in the Federal Register to preserve fuel-secure generation resources.
sradovich on DSK3GMQ082PROD with PROPOSALS

or, in the alternative, to issue the rule Because of the urgency of this matter, the
18 CFR Part 35 as an interim final rule immediately, 60-day deadline imposed in the Notice is
reasonable within the meaning of Section 403
with provision for later modifications
[Docket No. RM18–1–000] of the Department of Energy Organization Act
after consideration of public comments. and is otherwise compliant with applicable
Grid Resiliency Pricing Rule By letter dated December 7, 2017, the law. The better course would be for the
Commission requested an extension of Commission to adopt the Proposal within
AGENCY:Federal Energy Regulatory time to take final action on the proposed this reasonable deadline. If the Commission
Commission, Department of Energy. rule (the letter is available at https:// fails to adopt the Proposal within the original

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Federal Register / Vol. 82, No. 242 / Tuesday, December 19, 2017 / Proposed Rules 60135

deadline for the reasons stated in the personal holding company income including whether the information will
Extension Request, the security of our (FPHCI). The proposed regulations also have practical utility;
nation’s electric grid will continue to be at provide an election for a taxpayer to use The accuracy of the estimated burden
risk. a mark-to-market method of accounting associated with the proposed collection
However, I understand that Section 403
assigns the Commission the responsibility to
for foreign currency gain or loss of information;
take final action on the Proposal within the attributable to section 988 transactions. How the quality, utility, and clarity of
reasonable time period set forth by me and In addition, the proposed regulations the information to be collected may be
it is solely within my authority under Section permit the controlling United States enhanced;
403 to grant an extension of time for final shareholders of a CFC to automatically How the burden of complying with
action. On the assumption that the revoke certain elections concerning the the proposed collection of information
Commission cannot act on the proposal treatment of foreign currency gain or may be minimized, including through
within the 60-day deadline, I hereby grant loss. The proposed regulations affect the application of automated collection
the request for an extension of time for the taxpayers and United States
Commission to deliberate and take final
techniques or other forms of information
shareholders of CFCs that engage in technology; and
action on the Grid Resiliency Pricing Rule for
an additional 30 days.1 The new deadline is
transactions giving rise to foreign Estimates of capital or start-up costs
Wednesday, January 10, 2018. The currency gain or loss under section 988 and costs of operation, maintenance,
Commission is nevertheless authorized to act of the Internal Revenue Code (Code). and purchases of services to provide
at any time prior to this deadline and I urge DATES: Written or electronic comments information.
the Commission to act expeditiously. During and requests for a public hearing must The collection of information in these
this additional period, the Department will be received by March 19, 2018. proposed regulations is in proposed
continue to examine all options within my
ADDRESSES: Send submissions to §§ 1.954–2(g)(3)(iii) and (4)(iii) and
authority under the Department of Energy
Organization Act, the Federal Power Act, and CC:PA:LPD:PR (REG–119514–15), Room 1.988–7. The information is required to
any other authorities to take remedial action 5203, Internal Revenue Service, P.O. be provided by taxpayers and United
as necessary to ensure the security of the Box 7604, Ben Franklin Station, States shareholders of CFCs that make
nation’s electric grid. Washington, DC 20044. Submissions an election or revoke an election with
I continue to believe that urgent action may be hand-delivered Monday through respect to the treatment of foreign
must be taken to ensure the resilience and Friday between the hours of 8 a.m. and currency gains and losses. The
security of the electric grid, which is so 4 p.m. to CC:PA:LPD:PR (REG–119514– information provided will be used by
vitally important to the economic and 15), Courier’s Desk, Internal Revenue the IRS for tax compliance purposes.
national security of the United States. I look
Service, 1111 Constitution Avenue NW, Estimated total annual reporting
forward to the Commission taking final
action in this matter for the benefit of the Washington, DC, or sent electronically burden: 5,000 hours.
American people. via the Federal eRulemaking Portal at Estimated average annual burden
Sincerely, http://www.regulations.gov (IRS REG– hours per respondent: One hour.
119514–15). Estimated number of respondents:
Rick Perry
FOR FURTHER INFORMATION CONTACT: 5,000.
[FR Doc. 2017–27187 Filed 12–18–17; 8:45 am]
Concerning the proposed regulations, Estimated annual frequency of
BILLING CODE 6450–01–P
Jeffery G. Mitchell, (202) 317–6934; responses: One.
concerning submissions of comments or An agency may not conduct or
requests for a public hearing, Regina sponsor, and a person is not required to
DEPARTMENT OF THE TREASURY Johnson, (202) 317–6901 (not toll-free respond to, a collection of information
numbers). unless it displays a valid control
Internal Revenue Service
SUPPLEMENTARY INFORMATION: number assigned by the Office of
Management and Budget.
26 CFR Part 1 Paperwork Reduction Act Books or records relating to a
[REG–119514–15] The collections of information collection of information must be
RIN 1545–BM80 contained in this notice of proposed retained as long as their contents may
rulemaking have been submitted to the become material in the administration
Exclusion of Foreign Currency Gain or Office of Management and Budget for of any internal revenue law. Generally,
Loss Related to Business Needs From review in accordance with the tax returns and tax return information
Foreign Personal Holding Company Paperwork Reduction Act of 1995 (44 are confidential, as required by 26
Income; Mark-to-Market Method of U.S.C. 3507(d)). Comments on the U.S.C. 6103.
Accounting for Section 988 collections of information should be Background
Transactions sent to the Office of Management and
Budget, Attn: Desk Officer for the This document contains proposed
AGENCY: Internal Revenue Service (IRS), Department of the Treasury, Office of amendments to 26 CFR part 1 under
Treasury. Information and Regulatory Affairs, sections 446, 954(c)(1)(D), and 988 of
ACTION: Notice of proposed rulemaking. Washington, DC 20503, with copies to the Code. Section 446 requires taxpayers
the Internal Revenue Service, Attn: IRS to compute taxable income using
SUMMARY: This document contains accounting methods that clearly reflect
Reports Clearance Officer,
proposed regulations that provide income. Section 954(c)(1)(D) provides
SE:W:CAR:MP:T:T:SP, Washington, DC
sradovich on DSK3GMQ082PROD with PROPOSALS

guidance on the treatment of foreign that FPHCI includes the excess of
20224. Comments on the collection of
currency gain or loss of a controlled foreign currency gains over foreign
information should be received by
foreign corporation (CFC) under the currency losses (as defined in section
February 20, 2018.
business needs exclusion from foreign Comments are specifically requested 988(b)) attributable to section 988
1 This extension is granted pursuant to my
concerning: transactions, other than transactions
authority under section 403 of the Department of
Whether the proposed collection of directly related to the business needs of
Energy Organization Act, among other powers and information is necessary for the proper the CFC. Section 988 provides rules for
authorities granted to me by law. performance of the duties of the IRS, determining the source and character of

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Document Created: 2017-12-19 01:31:13
Document Modified: 2017-12-19 01:31:13

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		Proposed Rules
Action		Notification of extension of time to take final action on the proposed rule.
Dates		The Commission is granted an extension for final action on the proposed rule published in the Federal Register on October 10, 2017 (82 FR 46940) by Wednesday, January 10, 2018.
Contact		Ronald (R.J.) Colwell, U.S. Department of Energy, Office of the Assistant General Counsel for Electricity and Fossil Energy (GC-76), Forrestal Building, Room 6D-033, 1000 Independence Avenue SW, Washington, DC 20585; (202) 586-9507; email [email protected]
FR Citation		82 FR 60134

82 FR 60134 - Grid Resiliency Pricing Rule

DEPARTMENT OF ENERGYFederal Energy Regulatory Commission

Federal Register Volume 82, Issue 242 (December 19, 2017)

DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission