82_FR_9727 82 FR 9702 - Remedial Action Schemes Reliability Standard

82 FR 9702 - Remedial Action Schemes Reliability Standard

DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission

Federal Register Volume 82, Issue 25 (February 8, 2017)

Page Range9702-9706
FR Document2017-02331

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.

Federal Register, Volume 82 Issue 25 (Wednesday, February 8, 2017)
[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).



                                               VerDate Sep<11>2014    17:23 Feb 07, 2017   Jkt 241001   PO 00000   Frm 00012   Fmt 4702   Sfmt 4702   E:\FR\FM\08FEP1.SGM    08FEP1


                                                                         Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Proposed Rules                                                        9703

                                                    listing; retain evidence of review; and                 necessary information to the                             Reliability Standard PRC–012–2
                                                    provide documentation of existing, new                  Commission.10                                            represents substantial improvements
                                                    or functionally modified special                                                                                 over these Reliability Standards because
                                                                                                            C. Remedial Acton Schemes
                                                    protection systems.5 Reliability                                                                                 it streamlines and consolidates existing
                                                    Standard PRC–016–1 requires                               5. On June 23, 2016, the Commission                    requirements; corrects the applicability
                                                    transmission owners, generator owners,                  approved NERC’s revision to NERC                         of previously unapproved Reliability
                                                    and distribution providers to provide                   Glossary of Terms that redefines special                 Standards; and implements a continent-
                                                    the regional reliability organization with              protection system to have the same                       wide RAS review program.16
                                                    documentation, analyses and corrective                  definition as RAS, effective April 1,                       7. NERC states that, in the United
                                                    action plans for misoperation of special                2017.11 Effective April 1, 2017, the                     States, proposed Reliability Standard
                                                    protection systems.6                                    NERC Glossary of Terms will define                       PRC–012–2 will apply to reliability
                                                                                                            Remedial Action Scheme to mean:                          coordinators, planning coordinators,
                                                       4. In Order No. 693, the Commission                                                                           and RAS-entities. Proposed Reliability
                                                                                                               A scheme designed to detect
                                                    determined that proposed Reliability                    predetermined System conditions and                      Standard PRC–012–2 defines RAS-
                                                    Standard PRC–012–0 was a ‘‘fill-in-the-                 automatically take corrective actions that               entities to include the transmission
                                                    blank’’ Reliability Standard because,                   may include, but are not limited to, adjusting           owner, generation owner, or distribution
                                                    while it was proposed to require                        or tripping generation (MW and Mvar),                    provider that owns all or part of a RAS.
                                                    regional reliability organizations to                   tripping load, or reconfiguring a System(s).                8. NERC states that proposed
                                                    ensure that all special protection                      RAS accomplish objectives such as:                       Reliability Standard PRC–012–2
                                                    systems are properly designed, meet                        • Meet requirements identified in the
                                                                                                            NERC Reliability Standards;                              includes nine requirements that
                                                    performance requirements, and are                          • Maintain Bulk Electric System (BES)                 combine all existing (both effective and
                                                    coordinated with other protection                       stability;                                               ‘‘pending’’) Reliability Standards into a
                                                    systems, NERC had not submitted any                        • Maintain acceptable BES voltages;                   single, consolidated, continent-wide
                                                    regional review procedures with this                       • Maintain acceptable BES power flows;                Reliability Standard to address all
                                                    standard.7 The Commission also                             • Limit the impact of Cascading or extreme            aspects of RAS.17 NERC states that all of
                                                    determined that proposed Reliability                    events.12                                                the requirements in Reliability Standard
                                                    Standard PRC–013–0 was a ‘‘fill-in-the-                 The revised RAS definition also                          PRC–012–1 except R2 are now covered
                                                    blank’’ Reliability Standard because,                   identifies fourteen items that do not                    in Requirements R1, R2, R3, R4, R5, R6,
                                                    although it was proposed to ensure that                 individually constitute a RAS.                           and R8 of proposed Reliability Standard
                                                    all special protection systems are                                                                               PRC–012–2.18 NERC explains that
                                                    properly designed, meet performance                     D. NERC Petition and Proposed
                                                                                                                                                                     Reliability Standard PRC–012–1,
                                                    requirements, and are coordinated with                  Reliability Standard PRC–012–2
                                                                                                                                                                     Requirement R2 is ‘‘administrative in
                                                    other protection systems by requiring                     6. On August 5, 2016, NERC                             nature and does not contribute to
                                                    the regional reliability organization to                submitted a petition seeking                             reliability.’’ 19 NERC also states that it
                                                    maintain a database of information on                   Commission approval of proposed                          established Requirement R9 of proposed
                                                    special protection systems, NERC had                    Reliability Standard PRC–012–2.13                        Reliability Standard PRC–012–2 to
                                                    not filed any regional procedures for                   NERC contends that proposed                              replace the mandate in Reliability
                                                    maintaining the databases.8 Further, the                Reliability Standard PRC–012–2 is just,                  Standard PRC–013–1 that responsible
                                                    Commission determined that proposed                     reasonable, not unduly discriminatory                    entities maintain a RAS database with
                                                    Reliability Standard PRC–014–0 was a                    or preferential, and in the public                       pertinent technical information for each
                                                    ‘‘fill-in-the-blank’’ Reliability Standard              interest.14 NERC explains that the intent                RAS.20 NERC explains that proposed
                                                    because, while it was proposed to                       of proposed Reliability Standard PRC–                    Reliability Standard PRC–012–2
                                                    ensure that special protection systems                  012–2 is to supersede ‘‘pending’’                        Requirements R4 and R6 cover the
                                                    are properly designed, meet                             Reliability Standards PRC–012–1, PRC–                    review and the mandate to take
                                                    performance requirements, and are                       013–1, and PRC–014–1 and to retire and                   corrective action required by Reliability
                                                    coordinated with other protection                       replace currently-effective Reliability                  Standard PRC–014–1.21 NERC states
                                                    systems by requiring the regional                       Standards PRC–015–1 and PRC–016–                         that it integrated the performance
                                                    reliability organization to assess and                  1.15 NERC states that proposed                           requirements in Reliability Standard
                                                    document the operation, coordination,                                                                            PRC–015–1 into proposed Reliability
                                                                                                              10 Id. PP 1520, 1524, 1528.
                                                    and compliance with NERC Reliability                                                                             Standard PRC–012–2 Requirements R1,
                                                                                                              11 N.  Am. Elec. Reliability Corp., Docket No.
                                                    Standards and effectiveness of special                                                                           R2, and R3.22 NERC maintains that it
                                                                                                            RD16–5–000 (June 23, 2016) (delegated letter order);
                                                    protection systems at least once every                  NERC Glossary of Terms, http://www.nerc.com/             integrated the performance
                                                    five years, NERC had not submitted any                  files/glossary_of_terms.pdf.                             requirements in Reliability Standard
                                                    regional procedures for this assessment                    12 NERC Glossary of Terms, http://www.nerc.com/       PRC–016–1 into proposed Reliability
                                                    and documentation.9 The Commission                      files/glossary_of_terms.pdf; see also Revisions to       Standard PRC–012–2 Requirements R5,
                                                                                                            Emergency Operations Reliability Standards;
                                                    stated that it would not approve or                     Revisions to Undervoltage Load Shedding
                                                                                                                                                                     R6, and R7.23
                                                    remand proposed Reliability Standards                   Reliability Standards; Revisions to the Definition of       9. NERC explains how the nine
                                                    PRC–012–0, PRC–013–0 or PRC–014–0                       ‘‘Remedial Action Scheme’’ and Related Reliability       Requirements in proposed Reliability
                                                    until NERC submitted the additional                     Standards, Order No. 818, 153 FERC ¶ 61,228, at
                                                                                                            PP 24, 31 (2015).                                        NERC did not request Commission approval of the
                                                                                                               13 Proposed Reliability Standard PRC–012–2 is
                                                                                                                                                                     revised Reliability Standards in that proceeding. Id.
jstallworth on DSK7TPTVN1PROD with PROPOSALS




                                                      5 Id.  PP 1529–1533.                                  not attached to this Notice of Proposed Rulemaking.      at 1 n.5.
                                                       6 Id. PP 1534–1540.
                                                                                                            The proposed Reliability Standard is available on           16 Id. at 12–13.
                                                       7 Id. PP 1517–18, 1520. The Commission used the      the Commission’s eLibrary document retrieval                17 Id. at 3.
                                                    term ‘‘fill-in-the-blank’’ standards to refer to        system in Docket No. RM16–20–000 and is posted              18 Id. at 40.
                                                    proposed Reliability Standards that required the        on NERC’s Web site, http://www.nerc.com.
                                                                                                                                                                        19 Id. at 41.
                                                    regional reliability organizations to develop at a         14 NERC Petition at 2.
                                                                                                                                                                        20 Id. at 42.
                                                    later date criteria for use by users, owners or            15 NERC notes that it submitted ‘‘for
                                                    operators within each region. Id. P 297.                completeness’’ revised versions of Reliability
                                                                                                                                                                        21 Id. at 43.
                                                       8 Id. PP 1521, 1522, 1524.                                                                                       22 Id. at 43–44.
                                                                                                            Standards PRC–012–1, PRC–013–1, and PRC–014–
                                                       9 Id. PP 1525, 1526, 1528.                           1 in its petition to revise the definition of RAS, but      23 Id. at 44–45.




                                               VerDate Sep<11>2014   15:10 Feb 07, 2017   Jkt 241001   PO 00000   Frm 00013   Fmt 4702   Sfmt 4702   E:\FR\FM\08FEP1.SGM     08FEP1


                                                    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.



                                               VerDate Sep<11>2014    15:10 Feb 07, 2017   Jkt 241001   PO 00000   Frm 00014      Fmt 4702   Sfmt 4702   E:\FR\FM\08FEP1.SGM   08FEP1


                                                                            Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Proposed Rules                                                                                         9705

                                                    impact RAS’’ should be defined in the                              of the burden estimates, ways to                                        entities. It also streamlines and
                                                    Glossary of Terms Used in NERC                                     enhance the quality, utility, and clarity                               consolidates the RAS Reliability
                                                    Reliability Standards.                                             of the information to be collected or                                   Standards into one clear, effective
                                                                                                                       retained, and any suggested methods for                                 Reliability Standard. The number of
                                                    III. Information Collection Statement
                                                                                                                       minimizing respondents’ burden,                                         respondents below is based on an
                                                      18. The collection of information                                including the use of automated                                          examination of the NERC compliance
                                                    addressed in this Notice of Proposed                               information techniques.                                                 registry for reliability coordinators,
                                                    Rulemaking is subject to review by the                               20. The information collection                                        planning coordinators, transmission
                                                    Office of Management and Budget                                    requirements in this Notice of Proposed                                 owners, generation owners, and
                                                    (OMB) under section 3507(d) of the                                 Rulemaking in Docket No. RM16–20–                                       distribution providers and an estimation
                                                    Paperwork Reduction Act of 1995.39                                 000 is associated with FERC–725A                                        of how many entities from that registry
                                                    OMB’s regulations require approval of                              (OMB Control No. 1902–0244) and                                         will be affected by the proposed
                                                    certain information collection                                     FERC–725G (OMB Control No. 1902–                                        Reliability Standard. At the time of
                                                    requirements imposed by agency                                     0252).                                                                  Commission review of proposed
                                                    rules.40 Upon approval of a collection(s)                            21. Public Reporting Burden: The                                      Reliability Standard PRC–012–2, 15
                                                    of information, OMB will assign an                                 Commission proposes to approve                                          reliability coordinators, 71 planning
                                                    OMB control number and an expiration                               Reliability Standard PRC–012–2. The                                     coordinators, 328 transmission owners,
                                                    date. Respondents subject to the filing                            proposed Reliability Standard PRC–                                      930 generation owners, and 367
                                                    requirements of a rule will not be                                 012–2 consolidates so-called ‘‘fill-in-                                 distribution providers in the United
                                                    penalized for failing to respond to these                          the-blank’’ Reliability Standards PRC–                                  States were registered in the NERC
                                                    collections of information unless the                              012–1, PRC–013–1 and PRC–014–1, as                                      compliance registry. However, under
                                                    collections of information display a                               well as, Commission-approved                                            NERC’s compliance registration
                                                    valid OMB control number.                                          Reliability Standards PRC–015–1 and                                     program, entities may be registered for
                                                      19. The Commission will submit the                               PRC–016–1, into one standard. The                                       multiple functions, so these numbers
                                                    information collection requirement to                              proposed Reliability Standard PRC–                                      incorporate some double counting. The
                                                    OMB for its final review and approval.                             012–2 improves upon the existing                                        Commission notes that many generation
                                                    The Commission solicits public                                     standards because it removes ambiguity                                  sites share a common generation owner.
                                                    comments on the need for this                                      in NERC’s original ‘‘fill-in-the-blank’’                                The following table illustrates the
                                                    information, whether the information                               Reliability Standards by assigning                                      estimated burden to be applied to the
                                                    will have practical utility, the accuracy                          responsibility to appropriate functional                                information collection.41

                                                                          RM16–20–000 (MANDATORY RELIABILITY STANDARDS: RELIABILITY STANDARD PRC–012–2)
                                                          Requirement and                                               Number of
                                                                                             Number of                                             Total number of           Average burden hours and                         Annual burden hours and
                                                       respondent category for                                        responses per
                                                                                            respondents                                              responses                  cost per response 42                             total annual cost
                                                            PRC–012–2                                                   respondent

                                                                                                    (1)                        (2)                  (1) * (2) = (3)                             (4)                                 (3) * (4) = (5)

                                                    R1. 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.).
                                                    R2. Each Reliability Coordi-                               15                          1                          15     (Eng.) 16 hrs. ($1,029);                        300 hrs. (240 Eng., 60
                                                      nator.                                                                                                                   (R.K.) 4 hrs. ($151).                           R.K.); $17,695 ($15,430
                                                                                                                                                                                                                               Eng., $2,265 R.K.).
                                                    R4. Each Planning Coordi-                                  71                          1                          71     (Eng.) 16 hrs. ($1,029);                        1,420 hrs. (1,136 Eng., 284
                                                      nator.                                                                                                                   (R.K.) 4 hrs. ($151).                           R.K.); $85,754 ($73,033
                                                                                                                                                                                                                               Eng., $10,721 R.K.).
                                                    R5, R6, R7, and R8. Each                              1,595                            1                    1,595        (Eng.) 24 hrs. ($1,543);                        57,420 hrs. (38,280 Eng.,
                                                      RAS-entity (TO, 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 Coordi-                               15                          1                          15     (Eng.) 10 hrs. ($653); (R.K.)                   210 hrs. (150 Eng., 60
                                                      nator.                                                                                                                   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.).
jstallworth on DSK7TPTVN1PROD with PROPOSALS




                                                      Title: FERC–725A (Mandatory                                      (Mandatory Reliability Standards: PRC–                                    Action: Revision to existing
                                                    Reliability Standards); FERC–725G                                  012–2).                                                                 collections.


                                                      39 44   U.S.C. 3507(d) (2012).                                      41 In the burden table, engineering is abbreviated                   Response * $/hour = Cost per Response. The
                                                      40 5   CFR 1320.11 (2016).                                       as ‘‘Eng.’’ and record keeping is abbreviated as                        $64.29/hour figure for an engineer and the $37.75/
                                                                                                                       ‘‘R.K.’’                                                                hour figure for a record clerk are based on the
                                                                                                                          42 The estimates for cost per response are derived                   average salary plus benefits data from the Bureau
                                                                                                                       using the following formula: Burden Hours per                           of Labor Statistics.



                                               VerDate Sep<11>2014     15:10 Feb 07, 2017     Jkt 241001       PO 00000        Frm 00015         Fmt 4702   Sfmt 4702      E:\FR\FM\08FEP1.SGM             08FEP1


                                                    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).



                                               VerDate Sep<11>2014   15:10 Feb 07, 2017   Jkt 241001   PO 00000   Frm 00016   Fmt 4702   Sfmt 4702   E:\FR\FM\08FEP1.SGM   08FEP1



Document Created: 2017-02-08 02:58:53
Document Modified: 2017-02-08 02:58:53
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionNotice of proposed rulemaking.
DatesComments are due April 10, 2017
ContactSyed 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 Citation82 FR 9702 

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR