82 FR 9702 - Remedial Action Schemes Reliability Standard
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission Federal Register Volume 82, Issue 25 (February 8, 2017)
Federal Energy Regulatory Commission
Federal Register Volume 82, Issue 25 (February 8, 2017)
| Page Range | 9702-9706 | |
| FR Document | 2017-02331 |
[Federal Register Volume 82, Number 25 (Wednesday, February 8, 2017)] [Proposed Rules] [Pages 9702-9706] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-02331] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF ENERGY Federal Energy Regulatory Commission 18 CFR Part 40 [Docket No. RM16-20-000] Remedial Action Schemes Reliability Standard AGENCY: Federal Energy Regulatory Commission. ACTION: Notice of proposed rulemaking. ----------------------------------------------------------------------- SUMMARY: The Federal Energy Regulatory Commission proposes to approve Reliability Standard PRC-012-2 (Remedial Action Schemes) submitted by the North American Electric Reliability Corporation. The purpose of proposed Reliability Standard PRC-012-2 is to ensure that remedial action schemes do not introduce unintentional or unacceptable reliability risks to the bulk electric system. DATES: Comments are due April 10, 2017 ADDRESSES: Comments, identified by docket number, may be filed in the following ways:Electronic Filing through http://www.ferc.gov. Documents created electronically using word processing software should be filed in native applications or print-to-PDF format and not in a scanned format. Mail/Hand Delivery: Those unable to file electronically may mail or hand-deliver comments to: Federal Energy Regulatory Commission, Secretary of the Commission, 888 First Street, NE., Washington, DC 20426. Instructions: For detailed instructions on submitting comments and additional information on the rulemaking process, see the Comment Procedures Section of this document. FOR FURTHER INFORMATION CONTACT: Syed Ahmad (Technical Information), Office of Electric Reliability, Division of Reliability Standards and Security, 888 First Street NE., Washington, DC 20426, Telephone: (202) 502-8718, [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: 1. Pursuant to section 215 of the Federal Power Act (FPA), the Commission proposes to approve proposed Reliability Standard PRC-012-2 (Remedial Action Schemes). The North American Electric Reliability Corporation (NERC), the Commission-certified Electric Reliability Organization (ERO), submitted proposed Reliability Standard PRC-012-2 for approval. The purpose of proposed Reliability Standard PRC 012-2 is to ensure that remedial action schemes (RAS) do not introduce unintentional or unacceptable reliability risks to the bulk electric system. In addition, the Commission proposes to approve the associated violation risk factors and violation severity levels, implementation plan, and effective date proposed by NERC. NERC also submitted proposals to retire two currently-effective Reliability Standards and to withdraw three Reliability Standards that are pending review before the Commission. While proposing to approve Reliability Standard PRC- 012-2, the Commission seeks clarifying comments addressing ``limited impact'' RAS. Based on comments and information received, the Commission may issue directives as appropriate. 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.\1\ Once approved, the Reliability Standards may be enforced by the ERO subject to Commission oversight, or by the Commission independently.\2\ In 2006, the Commission certified NERC as the ERO pursuant to section 215 of the FPA.\3\ --------------------------------------------------------------------------- \1\ 16 U.S.C. 824o(c), (d) (2012). \2\ Id. 824o(e). \3\ 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), aff'd 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 Standards PRC-015-1 (Remedial Action Scheme Data and Documentation) and PRC-016-1 (Remedial Action Scheme Misoperation).\4\ Reliability Standard PRC-015-1 requires transmission owners, generator owners, and distribution providers to maintain a [[Page 9703]] listing; retain evidence of review; and provide documentation of existing, new or functionally modified special protection systems.\5\ Reliability Standard PRC-016-1 requires transmission owners, generator owners, and distribution providers to provide the regional reliability organization with documentation, analyses and corrective action plans for misoperation of special protection systems.\6\ --------------------------------------------------------------------------- \4\ 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). \5\ Id. PP 1529-1533. \6\ Id. PP 1534-1540. --------------------------------------------------------------------------- 4. In Order No. 693, the Commission determined that proposed Reliability Standard PRC-012-0 was a ``fill-in-the-blank'' Reliability Standard because, while it was proposed to require regional reliability organizations to ensure that all special protection systems are properly designed, meet performance requirements, and are coordinated with other protection systems, NERC had not submitted any regional review procedures with this standard.\7\ The Commission also determined that proposed Reliability Standard PRC-013-0 was a ``fill-in-the- blank'' Reliability Standard because, although it was proposed to ensure that all special protection systems are properly designed, meet performance requirements, and are coordinated with other protection systems by requiring the regional reliability organization to maintain a database of information on special protection systems, NERC had not filed any regional procedures for maintaining the databases.\8\ Further, the Commission determined that proposed Reliability Standard PRC-014-0 was a ``fill-in-the-blank'' Reliability Standard because, while it was proposed to ensure that special protection systems are properly designed, meet performance requirements, and are coordinated with other protection systems by requiring the regional reliability organization to assess and document the operation, coordination, and compliance with NERC Reliability Standards and effectiveness of special protection systems at least once every five years, NERC had not submitted any regional procedures for this assessment and documentation.\9\ The Commission stated that it would not approve or remand proposed Reliability Standards PRC-012-0, PRC-013-0 or PRC-014-0 until NERC submitted the additional necessary information to the Commission.\10\ --------------------------------------------------------------------------- \7\ Id. PP 1517-18, 1520. The Commission used the term ``fill- in-the-blank'' standards to refer to proposed Reliability Standards that required the regional reliability organizations to develop at a later date criteria for use by users, owners or operators within each region. Id. P 297. \8\ Id. PP 1521, 1522, 1524. \9\ Id. PP 1525, 1526, 1528. \10\ Id. PP 1520, 1524, 1528. --------------------------------------------------------------------------- C. Remedial Acton Schemes 5. On June 23, 2016, the Commission approved NERC's revision to NERC Glossary of Terms that redefines special protection system to have the same definition as RAS, effective April 1, 2017.\11\ Effective April 1, 2017, the NERC Glossary of Terms will define Remedial Action Scheme to mean: --------------------------------------------------------------------------- \11\ N. Am. Elec. Reliability Corp., Docket No. RD16-5-000 (June 23, 2016) (delegated letter order); NERC Glossary of Terms, http://www.nerc.com/files/glossary_of_terms.pdf. A scheme designed to detect predetermined System conditions and automatically take corrective actions that may include, but are not limited to, adjusting or tripping generation (MW and Mvar), tripping load, or reconfiguring a System(s). RAS accomplish objectives such as: Meet requirements identified in the NERC Reliability Standards; Maintain Bulk Electric System (BES) stability; Maintain acceptable BES voltages; Maintain acceptable BES power flows; Limit the impact of Cascading or extreme events.\12\ --------------------------------------------------------------------------- \12\ NERC Glossary of Terms, http://www.nerc.com/files/glossary_of_terms.pdf; see also Revisions to Emergency Operations Reliability Standards; Revisions to Undervoltage Load Shedding Reliability Standards; Revisions to the Definition of ``Remedial Action Scheme'' and Related Reliability Standards, Order No. 818, 153 FERC ] 61,228, at PP 24, 31 (2015). The revised RAS definition also identifies fourteen items that do not individually constitute a RAS. D. NERC Petition and Proposed Reliability Standard PRC-012-2 6. On August 5, 2016, NERC submitted a petition seeking Commission approval of proposed Reliability Standard PRC-012-2.\13\ NERC contends that proposed Reliability Standard PRC-012-2 is just, reasonable, not unduly discriminatory or preferential, and in the public interest.\14\ NERC explains that the intent of proposed Reliability Standard PRC-012- 2 is to supersede ``pending'' Reliability Standards PRC-012-1, PRC-013- 1, and PRC-014-1 and to retire and replace currently-effective Reliability Standards PRC-015-1 and PRC-016-1.\15\ NERC states that proposed Reliability Standard PRC-012-2 represents substantial improvements over these Reliability Standards because it streamlines and consolidates existing requirements; corrects the applicability of previously unapproved Reliability Standards; and implements a continent-wide RAS review program.\16\ --------------------------------------------------------------------------- \13\ Proposed Reliability Standard PRC-012-2 is not attached to this Notice of Proposed Rulemaking. The proposed Reliability Standard is available on the Commission's eLibrary document retrieval system in Docket No. RM16-20-000 and is posted on NERC's Web site, http://www.nerc.com. \14\ NERC Petition at 2. \15\ NERC notes that it submitted ``for completeness'' revised versions of Reliability Standards PRC-012-1, PRC-013-1, and PRC-014- 1 in its petition to revise the definition of RAS, but NERC did not request Commission approval of the revised Reliability Standards in that proceeding. Id. at 1 n.5. \16\ Id. at 12-13. --------------------------------------------------------------------------- 7. NERC states that, in the United States, proposed Reliability Standard PRC-012-2 will apply to reliability coordinators, planning coordinators, and RAS-entities. Proposed Reliability Standard PRC-012-2 defines RAS-entities to include the transmission owner, generation owner, or distribution provider that owns all or part of a RAS. 8. NERC states that proposed Reliability Standard PRC-012-2 includes nine requirements that combine all existing (both effective and ``pending'') Reliability Standards into a single, consolidated, continent-wide Reliability Standard to address all aspects of RAS.\17\ NERC states that all of the requirements in Reliability Standard PRC- 012-1 except R2 are now covered in Requirements R1, R2, R3, R4, R5, R6, and R8 of proposed Reliability Standard PRC-012-2.\18\ NERC explains that Reliability Standard PRC-012-1, Requirement R2 is ``administrative in nature and does not contribute to reliability.'' \19\ NERC also states that it established Requirement R9 of proposed Reliability Standard PRC-012-2 to replace the mandate in Reliability Standard PRC- 013-1 that responsible entities maintain a RAS database with pertinent technical information for each RAS.\20\ NERC explains that proposed Reliability Standard PRC-012-2 Requirements R4 and R6 cover the review and the mandate to take corrective action required by Reliability Standard PRC-014-1.\21\ NERC states that it integrated the performance requirements in Reliability Standard PRC-015-1 into proposed Reliability Standard PRC-012-2 Requirements R1, R2, and R3.\22\ NERC maintains that it integrated the performance requirements in Reliability Standard PRC-016-1 into proposed Reliability Standard PRC- 012-2 Requirements R5, R6, and R7.\23\ --------------------------------------------------------------------------- \17\ Id. at 3. \18\ Id. at 40. \19\ Id. at 41. \20\ Id. at 42. \21\ Id. at 43. \22\ Id. at 43-44. \23\ Id. at 44-45. --------------------------------------------------------------------------- 9. NERC explains how the nine Requirements in proposed Reliability [[Page 9704]] Standard PRC-012-2 work together and with other Reliability Standards. Proposed Requirements R1, R2, and R3, together, establish a process for the reliability coordinator to review new or modified RAS schemes.\24\ The reliability coordinator must complete the review before an entity places a new or functionally modified RAS into service. --------------------------------------------------------------------------- \24\ Id. at 15-18. --------------------------------------------------------------------------- 10. Proposed Requirement R4 requires the planning coordinator to perform a periodic evaluation of each RAS within its planning area, at least once every five years.\25\ The evaluation must determine, inter alia, whether each RAS: (1) Mitigates the system conditions or contingencies for which it was designed; and (2) avoids adverse interactions with other RAS and protection systems. Proposed Requirement R4, Part 4.1.3 footnote 1 defines a certain subset of RAS as ``limited impact'' RAS to mean ``A RAS designated as limited impact cannot, by inadvertent operation or failure to operate, cause or contribute to BES Cascading, uncontrolled separation, angular instability, voltage instability, voltage collapse, or unacceptably damped oscillations.'' \26\ Further, proposed Requirement R4, Parts 4.1.3, 4.1.4, and 4.1.5 provide certain exceptions to ``limited impact'' RAS. For example, Part 4.1.5 states that: --------------------------------------------------------------------------- \25\ Id. at 18-22. \26\ Id. at 19 & n.44. Except for limited impact RAS, a single component failure in the RAS, when the RAS is intended to operate does not prevent the BES from meeting the same performance requirements (defined in Reliability Standard TPL-001-4 or its successor) as those required for the events and conditions for which the RAS is designed.\27\ --------------------------------------------------------------------------- \27\ Id. at 19. NERC explains that proposed Requirement R4 ``does not supersede or modify [planning coordinator] responsibilities under Reliability Standard TPL-001-4.'' \28\ NERC continues that even though Part 4.1.5 exempts ``limited impact'' RAS from certain aspects of proposed Requirement R4, proposed Reliability Standard PRC-012-2 does not exempt ``limited impact'' RAS from meeting each of the performance requirements in Reliability Standard TPL-001-4.\29\ --------------------------------------------------------------------------- \28\ Id. at 28. \29\ Id. at 28-29. --------------------------------------------------------------------------- 11. NERC states that prior to development of proposed Reliability Standard PRC-012-2, two NERC Regions, the Northeast Power Coordinating Council (NPCC) and the Western Electric Coordinating Council (WECC), used individual RAS classification regimes to identify RAS that would meet criteria similar to those for RAS described as ``limited impact'' in proposed Reliability Standard PRC-012-2.\30\ NERC continues that the standard drafting team identified the Local Area Protection Scheme (LAPS) classification in WECC and the Type III classification in NPCC as consistent with the ``limited impact'' designation.\31\ According to NERC, RAS implemented prior to the effective date of proposed Reliability Standard PRC-012-2 that have gone through the regional review processes of WECC or NPCC and that are classified as either a LAPS by WECC or a Type III by NPCC, would be considered a ``limited impact'' RAS for purposes of proposed Reliability Standard PRC-012- 2.\32\ --------------------------------------------------------------------------- \30\ Id. at 25. \31\ Id. at 25-26. \32\ Id. at 26. --------------------------------------------------------------------------- 12. Proposed Requirements R5, R6, and R7 pertain to the analysis of each RAS operation or misoperation.\33\ The RAS-entity must perform an analysis of each RAS operation or misoperation and provide the results to the reviewing reliability coordinator. Further, the RAS-entity must develop and submit a corrective action plan to the reviewing reliability coordinator after learning of a deficiency with its RAS, implement the corrective action plan, and update it as necessary. Proposed Requirement R8 requires periodic testing of RAS performance: Every six years for normal RAS and 12 years for ``limited impact'' RAS.\34\ Proposed Requirement R9 requires the reliability coordinator to annually update its RAS database.\35\ --------------------------------------------------------------------------- \33\ Id. at 29-34. \34\ Id. at 34-36. \35\ Id. at 36-38. --------------------------------------------------------------------------- 13. NERC proposes an implementation plan that includes an effective date for proposed Reliability Standard PRC-012-2 that is the first day of the first calendar quarter that is thirty-six months after the date that the Commission approves the proposed Reliability Standard. Concurrent with the effective date, the implementation plan calls for the retirement of currently-effective Reliability Standards PRC-015-1 and PRC-016-1 and withdrawal of ``pending'' Reliability Standards PRC- 012-1, PRC-013-1, and PRC-014-1. II. Discussion 14. Pursuant to section 215(d)(2) of the FPA, we propose to approve proposed Reliability Standard PRC-012-2 as just, reasonable, not unduly discriminatory or preferential, and in the public interest. We also propose to approve the associated violation risk factors and violation severity levels, implementation plan, and effective date proposed by NERC. Further, we propose to approve the withdrawal of ``pending'' Reliability Standards PRC-012-1, PRC-013-1, and PRC-014-1 and retirement of currently-effective Reliability Standards PRC-015-1 and PRC-016-1, as proposed by NERC. 15. Proposed Reliability Standard PRC-012-2 enhances reliability by addressing all aspects of RAS in a single, continent-wide Reliability Standard and by assigning specific RAS responsibilities to appropriate functional entities. Accordingly, proposed Reliability Standard PRC- 012-2 satisfies the relevant directive in Order No. 693. In addition, we agree with NERC that Reliability Standards PRC-015-1 and PRC-016-1 can be retired as proposed in the implementation plan due to their consolidation with proposed Reliability Standard PRC-012-2. 16. NERC's petition states that proposed Reliability Standard PRC- 012-2 does not exempt ``limited impact'' RAS from meeting all system performance requirements of Reliability Standard TPL-001-4. We propose to clarify that, consistent with NERC's explanation, proposed Reliability Standard PRC-012-2 will not modify or supersede any system performance obligations under Reliability Standard TPL-001-4.\36\ For example, under Reliability Standard TPL-001-4, Table 1 non- consequential load loss may not exceed 75 MW for certain Category P1, P2, or P3 contingencies following the Reliability Standard TPL-001-4 stakeholder process.\37\ We seek comment on this proposal. --------------------------------------------------------------------------- \36\ See NERC Petition at 28 (``Requirement R4 of PRC-012-2 does not supersede or modify [planning coordinator] responsibilities under Reliability Standard TPL-001-4. . .''). \37\ Reliability Standard TPL-001-4, Table 1 (Steady State & Stability Performance Extreme Events), footnote 12 and Attachment 1. --------------------------------------------------------------------------- 17. We also seek comment on the processes used to ensure the LAPS or Type III RAS will be compliant with Reliability Standard TPL-001-4 prior to the effective date of Reliability Standard PRC-012-2, including a description of considerations on whether the load disconnected by each RAS installation is consequential or non- consequential, and if non-consequential load loss is greater than 75 MW.\38\ We further seek comment on whether the term ``limited [[Page 9705]] impact RAS'' should be defined in the Glossary of Terms Used in NERC Reliability Standards. --------------------------------------------------------------------------- \38\ The Commission notes that WECC's and NPCC's RAS criteria and associated regional terms found in the ``Technical Justification'' section of proposed Reliability Standard PRC-012-2 were not submitted for approval by NERC and as such are not part of this proceeding. --------------------------------------------------------------------------- III. Information Collection Statement 18. The collection of information addressed in this Notice of Proposed Rulemaking is subject to review by the Office of Management and Budget (OMB) under section 3507(d) of the Paperwork Reduction Act of 1995.\39\ OMB's regulations require approval of certain information collection requirements imposed by agency rules.\40\ 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. --------------------------------------------------------------------------- \39\ 44 U.S.C. 3507(d) (2012). \40\ 5 CFR 1320.11 (2016). --------------------------------------------------------------------------- 19. The Commission will submit the information collection requirement to OMB for its final review and approval. The Commission solicits public comments on the need for this information, whether the information will have practical utility, the accuracy of the burden estimates, ways to enhance the quality, utility, and clarity of the information to be collected or retained, and any suggested methods for minimizing respondents' burden, including the use of automated information techniques. 20. The information collection requirements in this Notice of Proposed Rulemaking in Docket No. RM16-20-000 is associated with FERC- 725A (OMB Control No. 1902-0244) and FERC-725G (OMB Control No. 1902- 0252). 21. Public Reporting Burden: The Commission proposes to approve Reliability Standard PRC-012-2. The proposed Reliability Standard PRC- 012-2 consolidates so-called ``fill-in-the-blank'' Reliability Standards PRC-012-1, PRC-013-1 and PRC-014-1, as well as, Commission- approved Reliability Standards PRC-015-1 and PRC-016-1, into one standard. The proposed Reliability Standard PRC-012-2 improves upon the existing standards because it removes ambiguity in NERC's original ``fill-in-the-blank'' Reliability Standards by assigning responsibility to appropriate functional entities. It also streamlines and consolidates the RAS Reliability Standards into one clear, effective Reliability Standard. The number of respondents below is based on an examination of the NERC compliance registry for reliability coordinators, planning coordinators, transmission owners, generation owners, and distribution providers and an estimation of how many entities from that registry will be affected by the proposed Reliability Standard. At the time of Commission review of proposed Reliability Standard PRC-012-2, 15 reliability coordinators, 71 planning coordinators, 328 transmission owners, 930 generation owners, and 367 distribution providers in the United States were registered in the NERC compliance registry. However, under NERC's compliance registration program, entities may be registered for multiple functions, so these numbers incorporate some double counting. The Commission notes that many generation sites share a common generation owner. The following table illustrates the estimated burden to be applied to the information collection.\41\ --------------------------------------------------------------------------- \41\ In the burden table, engineering is abbreviated as ``Eng.'' and record keeping is abbreviated as ``R.K.'' \42\ The estimates for cost per response are derived using the following formula: Burden Hours per Response * $/hour = Cost per Response. The $64.29/hour figure for an engineer and the $37.75/hour figure for a record clerk are based on the average salary plus benefits data from the Bureau of Labor Statistics. RM16-20-000 (Mandatory Reliability Standards: Reliability Standard PRC-012-2) -------------------------------------------------------------------------------------------------------------------------------------------------------- Number of Requirement and respondent category for Number of responses per Total number of Average burden hours and Annual burden hours and PRC-012-2 respondents respondent responses cost per response \42\ total annual cost (1) (2) (1) * (2) = (3) (4)......................... (3) * (4) = (5) -------------------------------------------------------------------------------------------------------------------------------------------------------- R1. Each RAS-entity (TO, GO, DP)......... 1,595 1 1,595 (Eng.) 24 hrs. ($1,543); 57,420 hrs. (38,280 Eng., (R.K.) 12 hrs. ($453). 19,140 R.K.); $3,183,556 ($2,461,021 Eng., $722,535 R.K.). R2. Each Reliability Coordinator......... 15 1 15 (Eng.) 16 hrs. ($1,029); 300 hrs. (240 Eng., 60 (R.K.) 4 hrs. ($151). R.K.); $17,695 ($15,430 Eng., $2,265 R.K.). R4. Each Planning Coordinator............ 71 1 71 (Eng.) 16 hrs. ($1,029); 1,420 hrs. (1,136 Eng., 284 (R.K.) 4 hrs. ($151). R.K.); $85,754 ($73,033 Eng., $10,721 R.K.). R5, R6, R7, and R8. Each RAS-entity (TO, 1,595 1 1,595 (Eng.) 24 hrs. ($1,543); 57,420 hrs. (38,280 Eng., GO, DP). (R.K.) 12 hrs. ($453). 19,140 R.K.); $3,183,556 ($2,461,021 Eng., $722,535 R.K.). R9. Each Reliability Coordinator......... 15 1 15 (Eng.) 10 hrs. ($653); 210 hrs. (150 Eng., 60 (R.K.) 4 hrs. ($151). R.K.); $11,909 ($9,644 Eng., $2,265 R.K.). --------------------------------------------------- TOTAL................................ .............. .............. 3,291 ............................ 116,770 hrs. (78,086 Eng., 38,684 R.K.); $6,480,470 ($5,020,149 Eng.; $1,460,321 R.K.). -------------------------------------------------------------------------------------------------------------------------------------------------------- Title: FERC-725A (Mandatory Reliability Standards); FERC-725G (Mandatory Reliability Standards: PRC-012-2). Action: Revision to existing collections. [[Page 9706]] OMB Control No: 1902-0244 (FERC-725A); 1902-0252 (FERC-725G). Respondents: Business or other for profit, and not for profit institutions. Frequency of Responses: Annually. Necessity of the Information: Proposed Reliability Standard PRC- 012-2 sets forth Requirements for remedial action schemes to ensure that remedial action schemes do not introduce unintentional or unacceptable reliability risks to the bulk electric system and are coordinated to provide the service to the system as intended. 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. 22. 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]. 23. Comments concerning the information collection proposed in this Notice of Proposed Rulemaking and the associated burden estimates should be sent to the Commission in this docket and 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 FERC-725A and FERC-725G and the docket number of this Notice of Proposed Rulemaking (Docket No. RM16-20-000) in your submission. IV. Environmental Analysis 24. 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.\43\ The action proposed here falls within the categorical exclusion in the Commission's regulations for rules that are clarifying, corrective or procedural, for information gathering, analysis, and dissemination.\44\ --------------------------------------------------------------------------- \43\ Regulations Implementing the National Environmental Policy Act of 1969, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs. Preambles 1986-1990 ] 30,783 (1987). \44\ 18 CFR 380.4(a)(2)(ii) (2016). --------------------------------------------------------------------------- V. Regulatory Flexibility Act 25. The Regulatory Flexibility Act of 1980 (RFA) \45\ generally requires a description and analysis of proposed rules that will have significant economic impact on a substantial number of small entities. --------------------------------------------------------------------------- \45\ 5 U.S.C. 601-612 (2012). --------------------------------------------------------------------------- 26. The proposed Reliability Standard PRC-012-2 will apply to approximately 1,681 entities in the United States. Comparison of the applicable entities with the Commission's small business data indicates that approximately 1,025 are small entities or 61 percent of the respondents affected by proposed Reliability Standard PRC-012-2.\46\ The Commission estimates for these small entities, proposed Reliability Standard PRC-012-2 may need to be evaluated and documented every five years with a cost of $6,322 for each evaluation. The Commission views this as a minimal economic impact for each entity. Accordingly, the Commission certifies that the proposed Reliability Standard PRC-012-2 will not have a significant economic impact on a substantial number of small entities. --------------------------------------------------------------------------- \46\ The Small Business Administration sets the threshold for what constitutes a small business. Public utilities may fall under one of several different categories, each with a size threshold based on the company's number of employees, including affiliates, the parent company, and subsidiaries. For the analysis in this Notice of Proposed Rulemaking, we apply a 500 employee threshold for each affected entity. Each entity is classified as Electric Bulk Power Transmission and Control (NAICS code 221121). --------------------------------------------------------------------------- VI. Comment Procedures 27. The Commission invites interested persons to submit comments on the matters and issues proposed in this notice to be adopted, including any related matters or alternative proposals that commenters may wish to discuss. Comments are due April 10, 2017. Comments must refer to Docket No. RM16-20-000, and must include the commenter's name, the organization they represent, if applicable, and their address in their comments. 28. The Commission encourages comments to be filed electronically via the eFiling link on the Commission's Web site at http://www.ferc.gov. The Commission accepts most standard word processing formats. Documents created electronically using word processing software should be filed in native applications or print-to-PDF format and not in a scanned format. Commenters filing electronically do not need to make a paper filing. 29. Commenters that are not able to file comments electronically must send an original of their comments to: Federal Energy Regulatory Commission, Secretary of the Commission, 888 First Street NE., Washington, DC 20426. 30. All comments will be placed in the Commission's public files and may be viewed, printed, or downloaded remotely as described in the Document Availability section below. Commenters on this proposal are not required to serve copies of their comments on other commenters. VII. Document Availability 31. In addition to publishing the full text of this document in the Federal Register, the Commission provides all interested persons an opportunity to view and/or print the contents of this document via the Internet through the Commission's Home Page (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. 32. 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. 33. User assistance is available for eLibrary and the Commission's Web site during normal business hours from the Commission's Online Support at 202-502-6652 (toll free at 1-866-208-3676) or email at [email protected], or the Public Reference Room at (202) 502- 8371, TTY (202) 502-8659. Email the Public Reference Room at [email protected]. By direction of the Commission. Issued: January 19, 2017. Nathaniel J. Davis, Sr., Deputy Secretary. [FR Doc. 2017-02331 Filed 2-7-17; 8:45 am] BILLING CODE 6717-01-P
![9702 Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Proposed Rules
• Requirement to comply with all DEPARTMENT OF ENERGY Corporation (NERC), the Commission-
applicable federal and state laws in the certified Electric Reliability
issuance of secondary capital; Federal Energy Regulatory Organization (ERO), submitted proposed
• Requirements for written contract Commission Reliability Standard PRC–012–2 for
agreements covering the terms and approval. The purpose of proposed
conditions of the secondary capital; 18 CFR Part 40 Reliability Standard PRC 012–2 is to
ensure that remedial action schemes
• Requirements for disclosures and [Docket No. RM16–20–000]
(RAS) do not introduce unintentional or
acknowledgement; unacceptable reliability risks to the bulk
Remedial Action Schemes Reliability
• Investor suitability; and Standard electric system. In addition, the
• Prohibitions. Commission proposes to approve the
AGENCY: Federal Energy Regulatory associated violation risk factors and
The items specific to secondary Commission. violation severity levels,
capital’s and supplemental capital’s ACTION: Notice of proposed rulemaking. implementation plan, and effective date
inclusion in regulatory capital and proposed by NERC. NERC also
related capital adequacy issues could be SUMMARY: The Federal Energy submitted proposals to retire two
consolidated into Section 702—Capital Regulatory Commission proposes to currently-effective Reliability Standards
Adequacy, including: approve Reliability Standard PRC–012– and to withdraw three Reliability
• Standards for alternative capital 2 (Remedial Action Schemes) submitted Standards that are pending review
instruments to be counted as regulatory by the North American Electric before the Commission. While
capital; Reliability Corporation. The purpose of proposing to approve Reliability
proposed Reliability Standard PRC–
• Any limits on the amount of 012–2 is to ensure that remedial action
Standard PRC–012–2, the Commission
alternative capital counted as regulatory seeks clarifying comments addressing
schemes do not introduce unintentional ‘‘limited impact’’ RAS. Based on
capital; or unacceptable reliability risks to the comments and information received, the
• The role of supplemental capital in bulk electric system. Commission may issue directives as
approval of a net worth restoration plan; DATES: Comments are due April 10, appropriate.
• Provisions for discounting 2017
regulatory capital treatments such as I. Background
ADDRESSES: Comments, identified by
violations of applicable laws or docket number, may be filed in the A. Section 215 and Mandatory
regulation, including any deficiency following ways: Reliability Standards
cure alternatives; and • Electronic Filing through http:// 2. Section 215 of the FPA requires a
• Risk weight for an investment in www.ferc.gov. Documents created Commission-certified ERO to develop
supplemental capital. electronically using word processing mandatory and enforceable Reliability
software should be filed in native Standards, subject to Commission
C. Payout Priorities applications or print-to-PDF format and review and approval.1 Once approved,
To conform the regulatory payout not in a scanned format. the Reliability Standards may be
priorities for supplemental capital, the • Mail/Hand Delivery: Those unable enforced by the ERO subject to
payout priorities for an involuntary to file electronically may mail or hand- Commission oversight, or by the
liquidation will need to be revised.75 deliver comments to: Federal Energy Commission independently.2 In 2006,
Supplemental capital would be listed in Regulatory Commission, Secretary of the the Commission certified NERC as the
the payout priority after uninsured Commission, 888 First Street, NE., ERO pursuant to section 215 of the
shareholders and the Share Insurance Washington, DC 20426. FPA.3
Fund. Instructions: For detailed instructions
on submitting comments and additional B. Order No. 693
D. Other Regulations information on the rulemaking process, 3. On March 16, 2007, the
see the Comment Procedures Section of Commission issued Order No. 693,
The Board seeks comments on any this document.
other related changes to existing approving 83 of the 107 Reliability
FOR FURTHER INFORMATION CONTACT: Standards filed by NERC, including
regulations, such as:
Syed Ahmad (Technical Information), Reliability Standards PRC–015–1
• Modifying the definition of insured Office of Electric Reliability, Division (Remedial Action Scheme Data and
shares in 741.4(b) to exclude any equity of Reliability Standards and Security, Documentation) and PRC–016–1
shares allowed under state law, if they 888 First Street NE., Washington, DC (Remedial Action Scheme
are in fact uninsured; 20426, Telephone: (202) 502–8718, Misoperation).4 Reliability Standard
• Modifying 741.9 to provide for the Syed.Ahmad@ferc.gov. PRC–015–1 requires transmission
existence of uninsured accounts issued Alan Rukin (Legal Information), Office owners, generator owners, and
under state law by FISCUs; and of the General Counsel, Federal distribution providers to maintain a
• Any cohering changes to part 745 as Energy Regulatory Commission, 888
necessary. First Street NE., Washington, DC 1 16 U.S.C. 824o(c), (d) (2012).
20426, Telephone: (202) 502–8502, 2 Id.824o(e).
jstallworth on DSK7TPTVN1PROD with PROPOSALS
By the National Credit Union Alan.Rukin@ferc.gov. 3 North American Electric Reliability Corp., 116
Administration Board on January 19, 2017. FERC ¶ 61,062 (ERO Certification Order), order on
SUPPLEMENTARY INFORMATION: reh’g and compliance, 117 FERC ¶ 61,126 (2006),
Gerard Poliquin,
1. Pursuant to section 215 of the order on compliance, 118 FERC ¶ 61,190, order on
Secretary of the Board. Federal Power Act (FPA), the reh’g, 119 FERC ¶ 61,046 (2007), aff’d sub nom.
[FR Doc. 2017–01713 Filed 2–7–17; 8:45 am] Commission proposes to approve Alcoa Inc. v. FERC, 564 F.3d 1342 (D.C. Cir. 2009).
4 Mandatory Reliability Standards for the Bulk-
BILLING CODE P proposed Reliability Standard PRC– Power System, Order No. 693, FERC Stats. and Regs.
012–2 (Remedial Action Schemes). The ¶ 31,242, order on reh’g, Order No. 693–A, 120
75 12 CFR 709.5. North American Electric Reliability FERC ¶ 61,053 (2007).
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![9704 Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Proposed Rules
Standard PRC–012–2 work together and classification regimes to identify RAS approve the associated violation risk
with other Reliability Standards. that would meet criteria similar to those factors and violation severity levels,
Proposed Requirements R1, R2, and R3, for RAS described as ‘‘limited impact’’ implementation plan, and effective date
together, establish a process for the in proposed Reliability Standard PRC– proposed by NERC. Further, we propose
reliability coordinator to review new or 012–2.30 NERC continues that the to approve the withdrawal of ‘‘pending’’
modified RAS schemes.24 The reliability standard drafting team identified the Reliability Standards PRC–012–1, PRC–
coordinator must complete the review Local Area Protection Scheme (LAPS) 013–1, and PRC–014–1 and retirement
before an entity places a new or classification in WECC and the Type III of currently-effective Reliability
functionally modified RAS into service. classification in NPCC as consistent Standards PRC–015–1 and PRC–016–1,
10. Proposed Requirement R4 requires with the ‘‘limited impact’’ as proposed by NERC.
the planning coordinator to perform a designation.31 According to NERC, RAS 15. Proposed Reliability Standard
periodic evaluation of each RAS within implemented prior to the effective date PRC–012–2 enhances reliability by
its planning area, at least once every five of proposed Reliability Standard PRC– addressing all aspects of RAS in a
years.25 The evaluation must determine, 012–2 that have gone through the single, continent-wide Reliability
inter alia, whether each RAS: (1) regional review processes of WECC or Standard and by assigning specific RAS
Mitigates the system conditions or NPCC and that are classified as either a responsibilities to appropriate
contingencies for which it was LAPS by WECC or a Type III by NPCC, functional entities. Accordingly,
designed; and (2) avoids adverse would be considered a ‘‘limited impact’’ proposed Reliability Standard PRC–
interactions with other RAS and RAS for purposes of proposed 012–2 satisfies the relevant directive in
protection systems. Proposed Reliability Standard PRC–012–2.32 Order No. 693. In addition, we agree
Requirement R4, Part 4.1.3 footnote 1 12. Proposed Requirements R5, R6, with NERC that Reliability Standards
defines a certain subset of RAS as and R7 pertain to the analysis of each PRC–015–1 and PRC–016–1 can be
‘‘limited impact’’ RAS to mean ‘‘A RAS RAS operation or misoperation.33 The retired as proposed in the
designated as limited impact cannot, by RAS-entity must perform an analysis of implementation plan due to their
inadvertent operation or failure to each RAS operation or misoperation and consolidation with proposed Reliability
operate, cause or contribute to BES provide the results to the reviewing Standard PRC–012–2.
Cascading, uncontrolled separation, reliability coordinator. Further, the 16. NERC’s petition states that
angular instability, voltage instability, RAS-entity must develop and submit a proposed Reliability Standard PRC–
voltage collapse, or unacceptably corrective action plan to the reviewing 012–2 does not exempt ‘‘limited
damped oscillations.’’ 26 Further, reliability coordinator after learning of a impact’’ RAS from meeting all system
proposed Requirement R4, Parts 4.1.3, deficiency with its RAS, implement the performance requirements of Reliability
4.1.4, and 4.1.5 provide certain corrective action plan, and update it as Standard TPL–001–4. We propose to
exceptions to ‘‘limited impact’’ RAS. necessary. Proposed Requirement R8 clarify that, consistent with NERC’s
For example, Part 4.1.5 states that: requires periodic testing of RAS explanation, proposed Reliability
performance: Every six years for normal Standard PRC–012–2 will not modify or
Except for limited impact RAS, a single supersede any system performance
component failure in the RAS, when the RAS RAS and 12 years for ‘‘limited impact’’
RAS.34 Proposed Requirement R9 obligations under Reliability Standard
is intended to operate does not prevent the
BES from meeting the same performance requires the reliability coordinator to TPL–001–4.36 For example, under
requirements (defined in Reliability Standard annually update its RAS database.35 Reliability Standard TPL–001–4, Table 1
TPL–001–4 or its successor) as those required 13. NERC proposes an non-consequential load loss may not
for the events and conditions for which the implementation plan that includes an exceed 75 MW for certain Category P1,
RAS is designed.27 effective date for proposed Reliability P2, or P3 contingencies following the
NERC explains that proposed Standard PRC–012–2 that is the first day Reliability Standard TPL–001–4
Requirement R4 ‘‘does not supersede or of the first calendar quarter that is stakeholder process.37 We seek
modify [planning coordinator] thirty-six months after the date that the comment on this proposal.
responsibilities under Reliability 17. We also seek comment on the
Commission approves the proposed
Standard TPL–001–4.’’ 28 NERC processes used to ensure the LAPS or
Reliability Standard. Concurrent with
continues that even though Part 4.1.5 Type III RAS will be compliant with
the effective date, the implementation
exempts ‘‘limited impact’’ RAS from Reliability Standard TPL–001–4 prior to
plan calls for the retirement of
certain aspects of proposed Requirement the effective date of Reliability Standard
currently-effective Reliability Standards
R4, proposed Reliability Standard PRC– PRC–012–2, including a description of
PRC–015–1 and PRC–016–1 and
012–2 does not exempt ‘‘limited considerations on whether the load
withdrawal of ‘‘pending’’ Reliability
impact’’ RAS from meeting each of the disconnected by each RAS installation
Standards PRC–012–1, PRC–013–1, and
performance requirements in Reliability is consequential or non-consequential,
PRC–014–1.
Standard TPL–001–4.29 and if non-consequential load loss is
11. NERC states that prior to II. Discussion greater than 75 MW.38 We further seek
development of proposed Reliability 14. Pursuant to section 215(d)(2) of comment on whether the term ‘‘limited
Standard PRC–012–2, two NERC the FPA, we propose to approve
36 See NERC Petition at 28 (‘‘Requirement R4 of
Regions, the Northeast Power proposed Reliability Standard PRC– PRC–012–2 does not supersede or modify [planning
Coordinating Council (NPCC) and the 012–2 as just, reasonable, not unduly coordinator] responsibilities under Reliability
jstallworth on DSK7TPTVN1PROD with PROPOSALS
Western Electric Coordinating Council discriminatory or preferential, and in Standard TPL–001–4. . .’’).
(WECC), used individual RAS the public interest. We also propose to 37 Reliability Standard TPL–001–4, Table 1
(Steady State & Stability Performance Extreme
24 Id. Events), footnote 12 and Attachment 1.
at 15–18. 30 Id. at 25. 38 The Commission notes that WECC’s and
25 Id. at 18–22. 31 Id. at 25–26.
26 Id. at 19 & n.44. 32 Id. at 26.
NPCC’s RAS criteria and associated regional terms
found in the ‘‘Technical Justification’’ section of
27 Id. at 19. 33 Id. at 29–34.
proposed Reliability Standard PRC–012–2 were not
28 Id. at 28. 34 Id. at 34–36.
submitted for approval by NERC and as such are not
29 Id. at 28–29. 35 Id. at 36–38. part of this proceeding.
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![9706 Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Proposed Rules
OMB Control No: 1902–0244 (FERC– V. Regulatory Flexibility Act Secretary of the Commission, 888 First
725A); 1902–0252 (FERC–725G). 25. The Regulatory Flexibility Act of Street NE., Washington, DC 20426.
Respondents: Business or other for 1980 (RFA) 45 generally requires a 30. All comments will be placed in
profit, and not for profit institutions. description and analysis of proposed the Commission’s public files and may
rules that will have significant be viewed, printed, or downloaded
Frequency of Responses: Annually. remotely as described in the Document
economic impact on a substantial
Necessity of the Information: Availability section below. Commenters
number of small entities.
Proposed Reliability Standard PRC– 26. The proposed Reliability Standard on this proposal are not required to
012–2 sets forth Requirements for PRC–012–2 will apply to approximately serve copies of their comments on other
remedial action schemes to ensure that 1,681 entities in the United States. commenters.
remedial action schemes do not Comparison of the applicable entities
introduce unintentional or unacceptable VII. Document Availability
with the Commission’s small business
reliability risks to the bulk electric data indicates that approximately 1,025 31. In addition to publishing the full
system and are coordinated to provide are small entities or 61 percent of the text of this document in the Federal
the service to the system as intended. respondents affected by proposed Register, the Commission provides all
Internal review: The Commission has Reliability Standard PRC–012–2.46 The interested persons an opportunity to
assured itself, by means of its internal Commission estimates for these small view and/or print the contents of this
review, that there is specific, objective entities, proposed Reliability Standard document via the Internet through the
support for the burden estimates PRC–012–2 may need to be evaluated Commission’s Home Page (http://
associated with the information and documented every five years with a www.ferc.gov) and in the Commission’s
requirements. cost of $6,322 for each evaluation. The Public Reference Room during normal
Commission views this as a minimal business hours (8:30 a.m. to 5:00 p.m.
22. Interested persons may obtain Eastern time) at 888 First Street NE.,
information on the reporting economic impact for each entity.
Accordingly, the Commission certifies Room 2A, Washington, DC 20426.
requirements by contacting the Federal 32. From the Commission’s Home
Energy Regulatory Commission, Office that the proposed Reliability Standard
PRC–012–2 will not have a significant Page on the Internet, this information is
of the Executive Director, 888 First available on eLibrary. The full text of
Street NE., Washington, DC 20426 economic impact on a substantial
number of small entities. this document is available on eLibrary
[Attention: Ellen Brown, email: in PDF and Microsoft Word format for
DataClearance@ferc.gov, phone: (202) VI. Comment Procedures viewing, printing, and/or downloading.
502–8663, fax: (202) 273–0873]. 27. The Commission invites interested To access this document in eLibrary,
23. Comments concerning the persons to submit comments on the type the docket number excluding the
information collection proposed in this matters and issues proposed in this last three digits of this document in the
Notice of Proposed Rulemaking and the notice to be adopted, including any docket number field.
associated burden estimates should be related matters or alternative proposals 33. User assistance is available for
sent to the Commission in this docket that commenters may wish to discuss. eLibrary and the Commission’s Web site
and may also be sent to the Office of Comments are due April 10, 2017. during normal business hours from the
Management and Budget, Office of Comments must refer to Docket No. Commission’s Online Support at 202–
Information and Regulatory Affairs RM16–20–000, and must include the 502–6652 (toll free at 1–866–208–3676)
[Attention: Desk Officer for the Federal commenter’s name, the organization or email at ferconlinesupport@ferc.gov,
Energy Regulatory Commission]. For they represent, if applicable, and their or the Public Reference Room at (202)
security reasons, comments should be address in their comments. 502–8371, TTY (202) 502–8659. Email
sent by email to OMB at the following 28. The Commission encourages the Public Reference Room at
email address: oira_submission@ comments to be filed electronically via public.referenceroom@ferc.gov.
omb.eop.gov. Please reference FERC– the eFiling link on the Commission’s By direction of the Commission.
725A and FERC–725G and the docket Web site at http://www.ferc.gov. The
Issued: January 19, 2017.
number of this Notice of Proposed Commission accepts most standard
word processing formats. Documents Nathaniel J. Davis, Sr.,
Rulemaking (Docket No. RM16–20–000)
in your submission. created electronically using word Deputy Secretary.
processing software should be filed in [FR Doc. 2017–02331 Filed 2–7–17; 8:45 am]
IV. Environmental Analysis native applications or print-to-PDF BILLING CODE 6717–01–P
24. The Commission is required to format and not in a scanned format.
prepare an Environmental Assessment Commenters filing electronically do not
or an Environmental Impact Statement need to make a paper filing. DEPARTMENT OF THE INTERIOR
for any action that may have a 29. Commenters that are not able to
significant adverse effect on the human file comments electronically must send Bureau of Indian Affairs
environment.43 The action proposed an original of their comments to:
here falls within the categorical Federal Energy Regulatory Commission, 25 CFR Part 140
exclusion in the Commission’s 45 5
[178A2100DD/AAKC001030/
U.S.C. 601–612 (2012).
regulations for rules that are clarifying, 46 The Small Business Administration sets the
A0A501010.999900 253G]
jstallworth on DSK7TPTVN1PROD with PROPOSALS
corrective or procedural, for information threshold for what constitutes a small business. RIN 1076–AF30
gathering, analysis, and Public utilities may fall under one of several
dissemination.44 different categories, each with a size threshold
based on the company’s number of employees,
Traders With Indians
including affiliates, the parent company, and AGENCY: Bureau of Indian Affairs,
43 Regulations Implementing the National
subsidiaries. For the analysis in this Notice of
Environmental Policy Act of 1969, Order No. 486, Proposed Rulemaking, we apply a 500 employee Interior.
52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs. threshold for each affected entity. Each entity is ACTION: Advance notice of proposed
Preambles 1986–1990 ¶ 30,783 (1987). classified as Electric Bulk Power Transmission and
44 18 CFR 380.4(a)(2)(ii) (2016).
rulemaking; Tribal consultation.
Control (NAICS code 221121).
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Document Created: 2017-02-08 02:58:53
Document Modified: 2017-02-08 02:58:53
| 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 | Notice of proposed rulemaking. | |
| Dates | Comments are due April 10, 2017 | |
| Contact | Syed Ahmad (Technical Information), Office of Electric Reliability, Division of Reliability Standards and Security, 888 First Street NE., Washington, DC 20426, Telephone: (202) 502-8718, [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 | 82 FR 9702 |
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