[Federal Register: July 28, 2008 (Volume 73, Number 145)]
[Rules and Regulations]
[Page 43613-43621]
[DOCID:fr28jy08-3]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 40

[Docket No. RM08-7-000; Order No. 713]

Modification of Interchange and Transmission Loading Relief
Reliability Standards; and Electric Reliability Organization
Interpretation of Specific Requirements of Four Reliability Standards

Issued July 21, 2008.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Final rule.

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SUMMARY: Pursuant to section 215 of the Federal Power Act, the Federal
Energy Regulatory Commission (Commission) approves five of six modified
Reliability Standards submitted to the Commission for approval by the
North American

Electric Reliability Corporation (NERC). The Commission directs NERC to
submit a filing that provides an explanation regarding one aspect of
the sixth modified Reliability Standard submitted by NERC. The
Commission also approves NERC's proposed interpretations of five
specific requirements of Commission-approved Reliability Standards.

DATES: Effective Date: This rule will become effective August 27, 2008.

FOR FURTHER INFORMATION CONTACT:

Patrick Harwood (Technical Information), Office of Electric
Reliability, Federal Energy Regulatory Commission, 888 First Street,
NE., Washington, DC 20426,<PHONE_NUMBER><EMAIL_ADDRESS>Christopher Daignault (Legal Information), Office of the General
Counsel, Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426,<PHONE_NUMBER><EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Final Rule

                            Table of Contents

                                                              Paragraph
                                                                 Nos.

I. Background..............................................            2
    A. EPAct 2005 and Mandatory Reliability Standards......            2
    B. NERC Filings........................................            6
    C. Notice of Proposed Rulemaking.......................           11
II. Discussion.............................................           13
    A. NERC's December 19, 2007 Filing: Interpretations of            13
     Reliability Standards.................................
        1. BAL-001-0--Real Power Balancing Control                    14
         Performance and BAL-003-0--Frequency Response and
         Bias..............................................
            a. Proposed Interpretation.....................           16
            b. Comments....................................           19
            c. Commission Determination....................           20
        2. Requirement R17 of BAL-005-0--Automatic                    23
         Generation Control................................
            a. Proposed Interpretation.....................           23
            b. Comments....................................           26
                i. Whether interpretation could decrease              26
                 accuracy of frequency and time error
                 measurements..............................
                ii. What conditions would preclude                    28
                 requirement to calibrate devices..........
                iii. Whether accuracy of devices is assured           30
                 by other requirements.....................
            c. Commission Determination....................           32
        3. Requirements R1 and R2 of VAR-002-1 Generator              35
         Operation for Maintaining Network Voltage
         Schedules.........................................
            a. Proposed Interpretations....................           35
            b. Comments....................................           39
            c. Commission Determination....................           40
    B. NERC's December 21, 2007 Filing: Modification of TLR           41
     Procedure.............................................
        1. Background......................................           42
        2. ERO TLR Filing, Reliability Standard IRO-006-4..           43
        3. NOPR............................................           44
        4. Comments........................................           45
        5. Commission Determination........................           46
    C. NERC's December 26, 2007 Filing: Modification to               51
     Five ``Interchange and Scheduling'' Reliability
     Standards.............................................
        1. INT-001-3--Interchange Information and INT-004-            52
         2--Dynamic Interchange Transaction Modifications..
            a. Comments....................................           56
            b. Commission Determination....................           57
        2. INT-005-2--Interchange Authority Distributes               58
         Arranged Interchange, INT-006-2--Response to
         Interchange Authority, and INT-008-2--Interchange
         Authority Distributes Status......................
            a. Comments....................................           66
            b. Commission Determination....................           67
III. Information Collection Statement......................           68
IV. Environmental Analysis.................................           71
V. Regulatory Flexibility Act..............................           72
VI. Document Availability..................................           73
VII. Effective Date and Congressional Notification.........           76

    Before Commissioners: Joseph T. Kelliher, Chairman; Suedeen G.
Kelly, Marc Spitzer, Philip D. Moeller, and Jon Wellinghoff.

    1. Pursuant to section 215 of the Federal Power Act (FPA),\1\ the
Commission approves five of six modified Reliability Standards
submitted to the Commission for review by the North American Electric
Reliability Corporation (NERC). The five Reliability Standards pertain
to interchange scheduling and coordination. The Commission directs NERC
to submit a filing that provides an explanation regarding one aspect of
the sixth modified Reliability Standard submitted by NERC, which
pertains to transmission loading relief (TLR) procedures. The Final
Rule also approves interpretations of five specific requirements of
Commission-approved Reliability Standards.

I. Background

A. EPAct 2005 and Mandatory Reliability Standards

    2. Section 215 of the FPA requires a Commission-certified Electric
Reliability Organization (ERO) to propose Reliability Standards for the
Commission's review. Once approved by the Commission, the Reliability
Standards may be enforced by the ERO, subject to Commission oversight,
or by the Commission independently.\2\
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    \1\ 16 U.S.C. 824o (2006).
    \2\ See FPA 215(e)(3), 16 U.S.C. 824o(e)(3) (2006).
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    3. Pursuant to section 215 of the FPA, the Commission established a
process to select and certify an ERO \3\ and,

subsequently, certified NERC as the ERO.\4\ On April 4, 2006, as
modified on August 28, 2006, NERC submitted to the Commission a
petition seeking approval of 107 proposed Reliability Standards. On
March 16, 2007, the Commission issued a Final Rule, Order No. 693,
approving 83 of these 107 Reliability Standards and directing other
action related to these Reliability Standards.\5\ In addition, pursuant
to section 215(d)(5) of the FPA, the Commission directed NERC to
develop modifications to 56 of the 83 approved Reliability Standards.
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    \3\ Rules Concerning Certification of the Electric Reliability
Organization; and Procedures for the Establishment, Approval, and
Enforcement of Electric Reliability Standards, Order No. 672, FERC
Stats. & Regs. ] 31,204, order on reh'g, Order No. 672-A, FERC
Stats. & Regs. ] 31,212 (2006).
    \4\ North American Electric Reliability Corp., 116 FERC ] 61,062
(ERO Certification Order), order on reh'g & compliance, 117 FERC ]
61,126 (ERO Rehearing Order) (2006), appeal docketed sub nom. Alcoa,
Inc. v. FERC, No. 06-1426 (DC Cir. Dec. 29, 2006).
    \5\ Mandatory Reliability Standards for the Bulk-Power System,
Order No. 693, FERC Stats. & Regs. ] 31,242, order on reh'g, Order
No. 693-A, 120 FERC ] 61,053 (2007).
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    4. In April 2007, the Commission approved delegation agreements
between NERC and each of the eight Regional Entities, including the
Western Electricity Coordinating Council (WECC).\6\ Pursuant to such
agreements, the ERO delegated responsibility to the Regional Entities
to carry out compliance monitoring and enforcement of the mandatory,
Commission-approved Reliability Standards. In addition, the Commission
approved as part of each delegation agreement a Regional Entity process
for developing regional Reliability Standards.
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    \6\ See North American Electric Reliability Corp., 119 FERC ]
61,060, order on reh'g, 120 FERC ] 61,260 (2007).
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    5. NERC's Rules of Procedure provide that a person that is
``directly and materially affected'' by Bulk-Power System reliability
may request an interpretation of a Reliability Standard.\7\ The ERO's
``standards process manager'' will assemble a team with relevant
expertise to address the clarification and also form a ballot pool.
NERC's Rules provide that, within 45 days, the team will draft an
interpretation of the Reliability Standard, with subsequent balloting.
If approved by ballot, the interpretation is appended to the
Reliability Standard and filed with the applicable regulatory authority
for regulatory approval.\8\
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    \7\ NERC Rules of Procedure, Appendix 3A (Reliability Standards
Development Procedure), at 26-27.
    \8\ We note that the NERC board of trustees approved the
interpretations of Reliability Standards submitted by NERC for
approval in this proceeding. However, Appendix 3A of NERC's Rules of
Procedure is silent on NERC board of trustees approval of
interpretations before they are filed with the regulatory authority.
The Commission is concerned that NERC's Rules of Procedure do not
properly reflect this approval step.
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B. NERC Filings

    6. As explained in the Notice of Proposed Rulemaking (NOPR),\9\
this rulemaking proceeding consolidates and addresses three NERC
filings.
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    \9\ Modification of Interchange and Transmission Loading Relief
Reliability Standards; and Electric Reliability Organization
Interpretation of Specific Requirements of Four Reliability
Standards, Notice of Proposed Rulemaking, 73 FR 22,856 (Apr. 28,
2008), FERC Stats. & Regs. ] 32,632 (2008) (NOPR).
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    7. On December 19, 2007, NERC submitted for Commission approval
five interpretations of requirements in four Commission-approved
Reliability Standards: BAL-001-0 (Real Power Balancing Control
Performance), Requirement R1; BAL-003-0 (Frequency Response and Bias),
Requirement R3; BAL-005-0 (Automatic Generation Control), Requirement
R17; and VAR-002-1 (Generator Operation for Maintaining Network Voltage
Schedules), Requirements R1 and R2.\10\ On April 15, 2008, NERC
submitted a petition to withdraw the earlier request for approval of
NERC's interpretation of BAL-003-0, Requirement R17, and instead to
approve a second interpretation of Requirement R17 submitted by NERC in
the April 15 filing.
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    \10\ In its filing, NERC identifies the Reliability Standards
together with NERC's proposed interpretations as BAL-001-0a, BAL-
003-0a, BAL-005-0a, and VAR-002-1a.
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    8. On December 21, 2007, NERC submitted for Commission approval
modifications to Reliability Standard IRO-006-4 (Reliability
Coordination--Transmission Loading Relief) that applies to balancing
authorities, reliability coordinators, and transmission operators.
According to NERC, the modifications ``extract'' from the Reliability
Standard the business practices and commercial requirements from the
current IRO-006-3 Reliability Standard. The business practices and
commercial requirements have been transferred to a North American
Energy Standards Board (NAESB) business practices document. The NAESB
business practices and commercial requirements have been included in
Version 001 of the NAESB Wholesale Electric Quadrant (WEQ) Standards
which NAESB filed with the Commission on the same day, December 21,
2007.\11\ Further, the modified Reliability Standard includes changes
directed by the Commission in Order No. 693 related to the
appropriateness of using the TLR procedure to mitigate violations of
interconnection reliability operating limits (IROL).\12\
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    \11\ NAESB December 21, 2007 Filing, Docket No. RM05-5-005.
    \12\ An IROL is a system operating limit that, if violated,
could lead to instability, uncontrolled separation, or cascading
outages that adversely impact the reliability of the Bulk-Power
System.
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    9. On December 26, 2007, NERC submitted for Commission approval
modifications to five Reliability Standards from the ``Interchange
Scheduling'' (INT) group of Reliability Standards: INT-001-3
(Interchange Information); INT-004-2 (Dynamic Interchange Transaction
Modifications); INT-005-2 (Interchange Authority Distributes Arranged
Interchange); INT-006-2 (Response to Interchange Authority); and INT-
008-2 (Interchange Authority Distributes Status). NERC stated that the
modifications to INT-001-3 and INT-004-2 eliminate waivers requested in
2002 under the voluntary Reliability Standards regime for entities in
the WECC region. According to NERC, modifications to INT-005-2, INT-
006-2, and INT-008-2 adjust reliability assessment time frames for
proposed transactions within WECC.\13\
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    \13\ The Reliability Standards and interpretations addressed in
this Final Rule are available on the Commission's eLibrary document
retrieval system in Docket No. RM08-7-000 and also on NERC's Web
site, http://www.nerc.com.
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    10. Each Reliability Standard that the ERO proposed to interpret or
modify in this proceeding was approved by the Commission in Order No.
693.

C. Notice of Proposed Rulemaking

    11. On April 21, 2008, the Commission issued a NOPR that proposed
to approve the six modified Reliability Standards submitted to the
Commission for approval by NERC and to approve NERC's proposed
interpretations of five specific requirements of Commission-approved
Reliability Standards. On May 16, 2008, the Commission supplemented the
NOPR,\14\ proposing to approve NERC's modified interpretation of
Reliability Standard BAL-005-0, Requirement R17.
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    \14\ Modification of Interchange and Transmission Loading Relief
Reliability Standards; and Electric Reliability Organization
Interpretation of Specific Requirements of Four Reliability
Standards, Supplemental Notice of Proposed Rulemaking, 73 FR 30,326
(May 27, 2008), FERC Stats. & Regs. ] 32,635 (2008) (Supplemental
NOPR).
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    12. In response to the NOPR, comments were filed by the following
eight interested persons: Alcoa Inc. (Alcoa); Independent Electricity
System Operator of Ontario (IESO); ISO/RTO Council; International
Transmission Company, Michigan Electric Transmission Company, LLC and
Midwest LLC (collectively, ITC); Lafayette Utilities and the Louisiana
Energy and Power Authority (Lafayette

and LEPA); NERC; NRG Companies; \15\ and Southern Company Services,
Inc. (Southern).
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    \15\ NRG Companies includes Louisiana Generating LLC, Bayou Cove
Peaking Power, LLC, Big Cajun I Peaking Power, LLC, NRG Sterlington
Power, LLC, and NRG Power Marketing, LLC.
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II. Discussion

A. NERC's December 19, 2007 Filing: Interpretations of Reliability
Standards

    13. As mentioned above, NERC submitted for Commission approval
interpretations of five specific requirements in four Commission-
approved Reliability Standards.
1. BAL-001-0--Real Power Balancing Control Performance and BAL-003-0--
Frequency Response and Bias
    14. The purpose of Reliability Standard BAL-001-0 is to maintain
interconnection steady-state frequency within defined limits by
balancing real power demand and supply in real-time.\16\ It uses two
averages, covering the one-minute and ten-minute area control error
(ACE) performance (CPS1 and CPS2, respectively), as measures for
determining compliance with its four Requirements. Requirement R1 of
BAL-001-0 obligates each balancing authority, on a rolling twelve-month
basis, to maintain its clock-minute averages of ACE, modified by its
frequency bias and the interconnection frequency, within a specific
limit based on historic performance.\17\
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    \16\ See Reliability Standard BAL-001-0. Each Reliability
Standard developed by the ERO includes a ``Purpose'' statement.
    \17\ Frequency bias is an approximation, expressed in megawatts
per 0.1 Hertz, of the frequency response of a balancing authority
area which estimates the net change in power from the generators
that is expected to occur with a change in interconnection frequency
from the scheduled frequency (which is normally 60 Hertz).
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    15. The purpose of Reliability Standard BAL-003-0 is to ensure that
a balancing authority's frequency bias setting is accurately calculated
to match its actual frequency response. Frequency bias may be
calculated in a number of ways provided that the frequency bias is as
close as practical to the frequency response. Requirement R3 of BAL-
003-0 requires each balancing authority to operate its automatic
generation control on ``tie line frequency bias,'' unless such
operation is adverse to system interconnection reliability.\18\
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    \18\ Automatic generation control refers to an automatic process
whereby a balancing authority's mix and output of its generation and
demand-side management is varied to offset the extent of supply and
demand imbalances reflected in its ACE. North American Electric
Reliability Corporation, 121 FERC ] 61,179, at P 19 n.14 (2007).
``Tie line frequency bias'' is defined in the NERC Glossary of Terms
Used in Reliability Standards as ``[a] mode of Automatic Generation
Control that allows the Balancing Authority to 1.) maintain its
Interchange Schedule and 2.) respond to Interconnection frequency
error.''
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a. Proposed Interpretation
    16. In its December 19, 2007 filing, NERC explained that WECC
requested the ERO to provide a formal interpretation whether the use of
WECC's existing automatic time error correction factor that is applied
to the net interchange portion of the ACE equation violates Requirement
R1 of BAL-001-0 or Requirement R3 of BAL-003-0.
    17. In response, the ERO interpreted BAL-001-0 Requirement R1 as
follows:
     The [WECC automatic time error correction or WATEC]
procedural documents ask Balancing Authorities to maintain raw ACE for
[control performance standard or CPS] reporting and to control via
WATEC-adjusted ACE.
     As long as Balancing Authorities use raw (unadjusted for
WATEC) ACE for CPS reporting purposes, the use of WATEC for control is
not in violation of BAL-001 Requirement 1.
    The ERO interpreted BAL-003-0 Requirement R3 as follows:
     Tie-Line Frequency Bias is one of the three foundational
control modes available in a Balancing Authority's energy management
system. (The other two are flat-tie and flat-frequency.) Many Balancing
Authorities layer other control objectives on top of their basic
control mode, such as automatic inadvertent payback, [control
performance standard] optimization, [and] time control (in single
[balancing authority] interconnections).\19\
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    \19\ The ``flat frequency'' control mode would increase or
decrease generation solely based on the interconnection frequency.
The ``flat tie'' mode would increase or decrease generation within a
balancing authority area depending solely on that balancing
authority's total interchange. The ``tie-line frequency bias'' mode
combines the flat frequency and flat tie modes and adjusts
generation based on the balancing authority's net interchange and
the interconnection frequency.
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     As long as Tie-Line Frequency Bias is the underlying
control mode and CPS1 is measured and reported on the associated ACE
equation,\20\ there is no violation of BAL-003-0 Requirement 3:
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    \20\ ``CPS1'' refers to Requirement R1 of BAL-001-0.

ACE = (NIA-NIS)-10B (FA-
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FS)-IME

(NERC December 19, 2007 Filing, Ex. A-3.)

    18. In the NOPR, the Commission proposed to approve the ERO's
formal interpretations of Requirement R1 of BAL-001-0 and Requirement
R3 of BAL-003-0.
b. Comments
    19. NERC and IESO support the Commission's proposal to approve
these interpretations.
c. Commission Determination
    20. The Commission approves the ERO's formal interpretations of
Requirement R1 of BAL-001-0 and Requirement R3 of BAL-003-0. The ERO's
interpretation of BAL-001-0, Requirement R1, is reasonable in that it
requires all balancing authorities in WECC to calculate CPS1 and CPS2
as defined in the Requirements. Thus, the interpretation upholds the
reliability goal to minimize the frequency deviation of the
interconnection by constantly balancing supply and demand.
    21. The ERO's interpretation of BAL-003-0, Requirement R3 is
appropriate because it maintains the goal of Requirement R3 by
obligating a balancing authority to operate automatic generation
control on tie-line frequency bias as its underlying control mode,
unless to do so is adverse to system or interconnection reliability.
Further, the interpretation fosters the purpose of Requirement R3, as
it allows that a balancing authority may go beyond Requirement R3 and
``layer other control objectives on top of their basic control modes,
such as automatic inadvertent payback, [control performance standard]
optimization, [and] time control (in single [balancing authority]
interconnections),'' \21\ although such layering is not required by the
Reliability Standard.
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    \21\ NERC interpretation of BAL-003-0, Requirement R3.
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    22. For the reasons stated above, the Commission finds that the
ERO's interpretations of Requirement R1 of BAL-001-0 and Requirement R3
of BAL-003-0 are just, reasonable, not unduly discriminatory or
preferential, and in the public interest. Accordingly, the Commission
approves the ERO's interpretations.
2. Requirement R17 of BAL-005-0--Automatic Generation Control
a. Proposed Interpretation
    23. Requirement R17 of Reliability Standard BAL-005-0 is intended
to annually check and calibrate the time error and frequency devices
under the control of the balancing authority that feed data into
automatic generation control necessary to calculate ACE. Requirement
R17 mandates that the balancing authority must adhere to an annual
calibration program for time error and frequency devices. The

requirement states that a balancing authority must adhere to minimum
accuracies in terms of ranges specified in Hertz, volts, amps, etc.,
for various listed devices, such as digital frequency transducers,
voltage transducers, remote terminal unit, potential transformers, and
current transformers.
    24. On April 15, 2008, NERC submitted an interpretation of
Requirement R17 regarding the type and location of the equipment to
which Requirement R17 applies.\22\ The interpretation provides that
BAL-005-0, Requirement R17
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    \22\ As mentioned earlier, in April 2008, NERC submitted a
petition seeking to withdraw an earlier interpretation of
Requirement R17 and substituting a new interpretation for Commission
approval.

applies only to the time error and frequency devices that provide,
or in the case of back-up equipment may provide, input into the
reporting or compliance ACE equation or provide real-time time error
or frequency information to the system operator. Frequency inputs
from other sources that are for reference only are excluded. The
time error and frequency measurement devices may not necessarily be
located in the system operations control room or owned by the
Balancing Authority; however the Balancing Authority has the
responsibility for the accuracy of the frequency and time error
devices * * *.
    New or replacement equipment that provides the same functions
noted above requires the same calibrations. Some devices used for
time error and frequency measurement cannot be calibrated as such.
In this case, these devices should be cross-checked against other
properly calibrated equipment and replaced if the devices do not
meet the required level of accuracy.

    25. In a supplemental NOPR issued May 16, 2008, the Commission
proposed to approve NERC's interpretation of BAL-005-0, Requirement
R17. In addition, the Commission noted that tie-line megawatt metering
data is an important aspect of ensuring the accurate calculation of
ACE, and the interpretation limits the specific accuracy requirements
of Requirement R17 to frequency and time error measurement devices. The
Commission asked for comment on (1) whether the interpretation could
decrease the accuracy of frequency and time error measurements by not
requiring calibration of tie-line megawatt metering devices; (2) what
conditions would preclude the requirement to calibrate these devices;
and (3) whether the accuracy of these devices is assured by other
requirements within BAL-005-0 in the absence of calibration.
b. Comments
i. Whether Interpretation Could Decrease Accuracy of Frequency and Time
Error Measurements
    26. Southern, ITC, ISO/RTO Council, and NERC claim that the
interpretation could not decrease the accuracy of frequency and time
error measurements by not requiring calibration of tie-line megawatt
metering devices because tie-line metering data is not an input to
either time error or frequency measurements and has no impact on the
accuracy of these devices. NERC further suggests that the Commission
may have intended to ask whether the interpretation adversely affects
the accuracy of the balancing authority ACE calculation. NERC provides
that it does not, because calibration of tie-line metering historically
was included in the guide section of NERC Operating Policy 1 and was
not intended to be translated into a requirement. NERC asserts that
calibration of tie-line metering remains a sound practice and there are
safeguards, checks, and balances to ensure inadvertent flows in the
interconnection equal zero, thus ensuring that errors in ACE are
bounded to protect the interconnections.
    27. As a general comment on the proposed interpretation of
Requirement R17, Southern suggests that the metering specifications
table in Requirement R17 may be creating some confusion because the
NERC committee that developed this Reliability Standard intended to
include the frequency metering specifications from this table but
inadvertently included other metering specifications that are not
required to fulfill Requirement R17. Southern claims that Requirement
R17 is intended to only address time error and frequency devices, and
this table was added in error and should have been limited to
specifications for those devices.
ii. What Conditions Would Preclude Requirement To Calibrate Devices
    28. NERC, ISO/RTO Council, and Southern claim that there are no
conditions which would preclude the requirement to calibrate tie-line
megawatt metering devices. NERC suggests that, if the question relates
to a possible new requirement to calibrate all tie-line metering
equipment on a given schedule, a new standards authorization request
should be submitted through the Reliability Standards Development
Process. NERC believes that the industry may not want to divert
resources away from other important tasks unless a case can be made
that calibration of these devices presents a risk to reliability.
Similarly, ITC comments that, if the Commission believes it is
necessary to annually calibrate the tie-line megawatt metering devices,
such a requirement belongs in BAL-005-0 and not in Requirement R17.
ISO/RTO Council claims such a requirement is unnecessary because it is
redundant, not needed for reliability, and poses the possibility of
financial sanctions for no good reason.
    29. ITC states that tie-line meters would be precluded from
calibration requirements if they are digital devices that the equipment
vendor has indicated do not require calibration. They claim that there
are no field calibration procedures which can be performed by end-users
for such devices. According to ITC, Requirement R17 of BAL-005-0 should
recognize that there are modern digital devices that do not require
calibration as analog devices do.
iii. Whether Accuracy of Devices Is Assured by Other Requirements
    30. NERC, ITC, ISO/RTO Council, and Southern state that tie-line
metering accuracy is addressed by Requirement R13 of BAL-005-0, which
requires each balancing authority to perform hourly error checks using
tie-line megawatt-hour meters with common time synchronization to
determine the accuracy of its control equipment and make adjustments
accordingly. ITC claims that Requirement R13 of BAL-005-0 provides a
more timely identification of errors than a requirement for annual
calibration.
    31. NERC comments that tie-line metering accuracy is not assured by
any other requirement. According to NERC, requirements relating to
Reliability Standards BAL-005-0 and BAL-006-1, along with the
associated NERC processes, provide several layers of overlapping
protection to address tie-line accuracy. NERC further claims that BAL-
005-0 requires balancing authorities to operate in conformance with
common metering equipment in comparison to that of their neighbors, so
there is no net balancing authority error in the interconnection as a
whole. In addition, NERC claims that many balancing authorities have
secondary or backup metering on critical tie lines and have access to
the NERC Resource Adequacy application, which can provide alerts to the
balancing authority of tie-line metering errors.
c. Commission Determination
    32. The Commission approves the ERO's formal interpretation of
Requirement R17 of BAL-005-0 as set forth in the ERO's April 2008
filing. Based on the comments, we find that

this interpretation will not decrease the accuracy of frequency and
time error measurements by not requiring calibration of tie-line
megawatt metering devices. In addition, we are persuaded by the
commenters that the need to calibrate tie-line megawatt metering
devices is addressed by other requirements such as Requirement R13 that
require hourly checks to ensure continuous accuracy. The Commission
notes that the applicable requirement for the accuracy of calibration
of tie-line megawatt metering devices is identified in Requirement R17.
While Southern has stated that the metering specifications table in
Requirement R17 was added in error, an interpretation cannot change the
substance of a Reliability Standard. Notwithstanding the question of
relevancy of particular components of the metering specifications
table, the accuracy requirements of this table remain part of
Reliability Standard BAL-005-0 as reference for mandatory reliability
practices. The Commission encourages further clarification of tie-line
metering device calibration requirements through the ERO standards
development process.
    33. ITC comments that digital devices are precluded from the
calibration requirement. We note that the interpretation provides that
``[s]ome devices used for time error and frequency measurement cannot
be calibrated as such. In this case, these devices should be cross-
checked against other properly calibrated equipment and replaced if the
devices do not meet the required level of accuracy.'' Thus, while ITC's
comment is accurate, the ERO's interpretation acknowledges the concern
and provides a response, i.e., modern digital devices that cannot be
calibrated must be cross-checked against other equipment and replaced
if they do not meet the required level of accuracy.
    34. The ERO's interpretation of BAL-005-0, Requirement R17 provides
that ``frequency inputs from other sources that are for reference only
are excluded.'' The Commission notes that this Reliability Standard
establishes requirements concerning the inputs to the ACE equation to
correctly operate automatic generation control. Frequency inputs used
for other purposes are not covered by this Reliability Standard.
Therefore, we understand the ERO's interpretation to exclude frequency
devices that do not provide input into the reporting or compliance with
the ACE equation or provide real-time time error or frequency
information to the system operator. Any devices that provide reference
input from which a balancing authority calibrates other time error and
frequency devices, however, do provide real-time time error and
frequency information to the system operator and therefore must be
calibrated under this requirement.
3. Requirements R1 and R2 of VAR-002-1 Generator Operation for
Maintaining Network Voltage Schedules
a. Proposed Interpretations
    35. The stated purpose of Reliability Standard VAR-002-1 is to
ensure that generators provide reactive and voltage control necessary
to ensure that voltage levels, reactive flows, and reactive resources
are maintained within applicable facility ratings to protect equipment
and the reliable operation of the interconnection. Requirement R1
ofVAR-002-1 provides:

    The Generator Operator shall operate each generator connected to
the interconnected transmission system in the automatic voltage
control mode (automatic voltage regulator in service and controlling
voltage) unless the Generator Operator has notified the Transmission
Operator.

    Requirement R2 provides:

    Unless exempted by the Transmission Operator, each Generator
Operator shall maintain the generator voltage or Reactive Power
output (within applicable Facility Ratings) as directed by the
Transmission Operator.

    36. The ERO received a request to provide a formal interpretation
of Requirements R1 and R2. The request first asked whether automatic
voltage regulator operation in the constant power factor or constant
Mvar modes complies with Requirement R1. Second, the request asked the
ERO whether Requirement R2 gives the transmission operator the option
of directing the generation owner to operate the automatic voltage
regulator in the constant power factor or constant Mvar modes rather
than the constant voltage mode.
    37. NERC's formal interpretation provides that a generator operator
that is operating its automatic voltage regulator in the constant power
factor or constant Mvar modes does not comply with Requirement R1.\23\
The interpretation rests on the assumptions that the generator has the
physical equipment that will allow such operation and that the
transmission operator has not directed the generator to run in a mode
other than constant voltage. The interpretation also provides that
Requirement R2 gives the transmission operator the option of directing
the generation operator to operate the automatic voltage regulator in
the constant power factor or constant Mvar modes rather than the
constant voltage mode.
---------------------------------------------------------------------------

    \23\ NERC's interpretation of VAR-002-1, Requirement R1 is
quoted in full in the NOPR, FERC Stats. & Regs. ] 32,632 at P 32,
n.27.
---------------------------------------------------------------------------

    38. In the NOPR, the Commission proposed to approve the ERO's
interpretation of Requirement R1 and Requirement R2 of VAR-002-1.
b. Comments
    39. NERC and IESO support the Commission's proposal to approve the
interpretation.
c. Commission Determination
    40. The Commission concludes that the interpretation is just,
reasonable, not unduly discriminatory or preferential, and in the
public interest. Therefore, the Commission approves the ERO's
interpretation of Requirements R1 and R2 of VAR-002-1.

B. NERC's December 21, 2007 Filing: Modification of TLR Procedure

    41. NERC submitted for Commission approval proposed Reliability
Standard IRO-006-4, which modifies the Commission-approved Reliability
Standard, IRO-006-3.
1. Background
    42. In Order No. 693, the Commission approved an earlier version of
this Reliability Standard, IRO-006-3. This Reliability Standard ensures
that a reliability coordinator has a coordinated transmission service
curtailment and reconfiguration method that can be used along with
other alternatives, such as redispatch or demand-side management, to
avoid transmission limit violations when the transmission system is
congested. Reliability Standard IRO-006-3 established a detailed TLR
procedure for use in the Eastern Interconnection to alleviate loadings
on the system by curtailing or changing transactions based on their
priorities and the severity of the transmission congestion. The
Reliability Standard referenced other procedures for WECC and Electric
Reliability Council of Texas (ERCOT).\24\
---------------------------------------------------------------------------

    \24\ The equivalent interconnection-wide TLR procedures for use
in WECC and ERCOT are known as ``WSCC Unscheduled Flow Mitigation
Plan'' and section 7 of the ``ERCOT Protocols,'' respectively.
---------------------------------------------------------------------------

2. ERO TLR Filing, Reliability Standard IRO-006-4
    43. In its December 2007 filing, NERC submitted for Commission
approval a modified TLR procedure, Reliability Standard IRO-006-4,
which contains five requirements. Requirement R1 obligates a
reliability coordinator experiencing a potential or actual system
operating limit (SOL) or IROL

violation within its reliability coordinator area to select one or more
procedures to provide transmission loading relief. The requirement also
identifies the regional TLR procedures in WECC and ERCOT.
3. NOPR
    44. In the NOPR, the Commission proposed to approve IRO-006-4 as
just, reasonable, not unduly discriminatory or preferential, and in the
public interest.\25\ The Commission also proposed to approve the
Reliability Standard based on the interpretation that using a TLR
procedure to mitigate an IROL violation is a violation of the
Reliability Standard. The Commission asked for comments on whether any
compromise in the reliability of the Bulk-Power System may result from
the removal and transfer to NAESB of the business-related issues
formerly contained in Reliability Standard IRO-006-3. In addition, the
Commission proposed to direct the ERO to modify the violation risk
factors assigned to Requirements R1 through R4 by raising them to
``high.''
---------------------------------------------------------------------------

    \25\ NOPR, FERC Stats. & Regs. ] 32,632 at P 48.
---------------------------------------------------------------------------

4. Comments
    45. The Commission received comments on the NOPR proposal. Because
the Final Rule does not approve or remand the proposed Reliability
Standard and, rather, directs the ERO to submit a filing that provides
an explanation regarding specific language of one requirement of IRO-
006-4, the Commission will address the comments in a future issuance in
this proceeding.
5. Commission Determination
    46. Because the Commission has concern regarding the understanding
of certain language of Requirements R1 and R1.1 of IRO-006-4, the
Commission is not approving or remanding the proposed Reliability
Standard at this time. Rather, the Commission directs that the ERO,
within 15 days of the effective date of this Final Rule, submit a
filing that provides an explanation regarding specific language of
Requirements R1 and R1.1 of IRO-006-4. The Commission will then issue a
notice allowing public comment on the ERO's filing, and will act on the
proposed Reliability Standard in a future issuance in this proceeding.
    47. In the Final Blackout Report, an international team of experts
studying the causes of the August 2003 blackout in North America
recommended that NERC ``[c]larify that the transmission loading relief
(TLR) process should not be used in situations involving an actual
violation of an Operation Security Limit.'' \26\ Based on the Final
Blackout Report recommendation, the Commission, in Order No. 693,
directed NERC to develop a modification to the TLR procedure (IRO-006-
3) that ``(1) includes a clear warning that the TLR procedure is an
inappropriate and ineffective tool to mitigate actual IROL violations
and (2) identifies in a Requirement the available alternatives to
mitigate an IROL violation other than use of the TLR procedure.'' \27\
---------------------------------------------------------------------------

    \26\ See U.S.-Canada Power System Outage Task Force, Final
Report on the August 14, 2003 Blackout in the United States and
Canada: Causes and Recommendations, at 163 (April 2004) (Final
Blackout Report) (Recommendation 31).
    \27\ See Order No. 693, FERC Stats. & Regs. ] 31,242 at P 577,
964.
---------------------------------------------------------------------------

    48. In response to this directive, NERC proposed in Requirement
R1.1 of IRO-006-4 that ``[t]he TLR procedure [for the Eastern
Interconnection] alone is an inappropriate and ineffective tool to
mitigate an IROL violation due to the time required to implement the
procedure.'' (Emphasis added.) The Commission is concerned whether this
language is adequate to satisfy the concern of the Final Blackout
Report and Order No. 693. Specifically, we note that the use of the
term ``alone'' seems to imply that a TLR procedure could be used in
response to an actual violation of an IROL whereas the Final Blackout
Report recommendation would prevent the use of the TLR procedure in
such situations. Moreover, Requirement R1 of IRO-006-4 further appears
to contradict the Final Blackout Report recommendation by allowing a
reliability coordinator to implement transmission loading relief
procedures to mitigate not only potential SOL or IROL violations but
also actual SOL or IROL violations.\28\ The Commission is concerned
that Recommendation 31 of the Final Blackout Report and the directive
in Order No. 693, both of which state the TLR procedures should not be
used in situations involving an actual violation of an IROL, may not be
clearly addressed in the proposed Reliability Standard.
---------------------------------------------------------------------------

    \28\ Requirement R1 provides that ``[a] reliability Coordinator
experiencing a potential or actual SOL or IROL violation within its
Reliability Coordinator Area shall, with its authority and at its
discretion, select one or more procedures to provide transmission
loading relief. This procedure can be a ``local'' * * * transmission
loading relief procedure or one of the following Interconnection-
wide procedures.* * *'' Sub-requirement R1.1 provides that ``[t]he
TLR procedure alone is an inappropriate and ineffective tool to
mitigate an IROL violation due to the time required to implement the
procedure. Other acceptable and more effective procedures to
mitigate actual IROL violations include: Reconfiguration,
redispatch, or load shedding.''
---------------------------------------------------------------------------

    49. The Commission notes that an entity is not prevented from using
the TLR procedure to avoid a potential IROL violation before a
violation occurs. If, while a TLR procedure is in progress, an IROL
violation occurs, it is not necessary for the entity to terminate the
TLR procedure. However, the Commission believes that it is
inappropriate and ineffective to rely on the TLR procedure, even in
conjunction with another tool, to address an actual IROL violation.
    50. Therefore, the Commission does not approve or remand IRO-006-4.
Rather, the Commission directs the ERO to submit a filing, within 15
days of the effective date of this Final Rule, that provides an
explanation regarding Requirements R1 and R1.1 of IRO-006-4.
Specifically, in light of the above discussion, the Commission directs
the ERO to provide an explanation regarding the phrase ``[t]he TLR
procedure alone is an inappropriate and ineffective tool to mitigate an
IROL violation * * *'' Further, the ERO should explain whether
Requirements R1 and R1.1 only allow the TLR procedure to be continued
when already deployed prior to an actual IROL violation or,
alternatively, whether Requirements R1 and R1.1 allow use of the TLR
procedure as a tool to address actual violations after they occur. If
the latter, the ERO is directed to explain why this application is not
contrary to both Blackout Report Recommendation 31 and the Commission's
determination in Order No. 693. The ERO's filing should include an
explanation of those actions that are acceptable, and those that are
unacceptable, pursuant to Requirement R1 and R1.1.

C. NERC's December 26, 2007 Filing: Modification to Five ``Interchange
and Scheduling'' Reliability Standards

    51. NERC submitted for Commission approval proposed modifications
to five Reliability Standards from the INT group of Reliability
Standards.
1. INT-001-3--Interchange Information and INT-004-2--Dynamic
Interchange Transaction Modifications
    52. The Interchange Scheduling and Coordination or ``INT'' group of
Reliability Standards address interchange transactions, which occur
when electricity is transmitted from a seller to a buyer across the
Bulk-Power System. Reliability Standard INT-001 applies to purchasing-
selling entities and balancing authorities. The stated purpose of the
Reliability Standard is to ``ensure that Interchange Information is
submitted to the NERC-identified reliability analysis service.''
Reliability

Standard INT-004 is intended to ``ensure Dynamic Transfers are
adequately tagged to be able to determine their reliability impacts.''
    53. In Order No. 693, the Commission approved earlier versions of
these Reliability Standards, INT-001-2 and INT-004-1.\29\ Further, when
NERC initially (in April 2006) submitted these two Reliability
Standards for Commission approval, NERC also asked the Commission to
approve a ``regional difference'' that would exempt WECC from
requirements related to tagging dynamic schedules and inadvertent
payback provisions of INT-001-2 and INT-004-1. The Commission, in Order
No. 693, stated that it did not have sufficient information to address
the ERO's proposed regional difference and directed the ERO to submit a
filing either withdrawing the regional difference or providing
additional information needed for the Commission to make a
determination on the matter.\30\ The effect of NERC's December 26, 2007
filing is to withdraw the regional difference with respect to WECC.
---------------------------------------------------------------------------

    \29\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 821, 843.
In addition, the Commission directed that the ERO develop
modifications to INT-001-2 and INT-004-1 that address the
Commission's concerns.
    \30\ Id. P 825.
---------------------------------------------------------------------------

    54. In its December 26, 2007 filing, NERC stated that, by
rescinding the e-tagging waivers, NERC maintains uniformity and makes
no structural changes to the requirements in the current Commission-
approved version of the Reliability Standards.
    55. In the NOPR, the Commission proposed to approve INT-001-3 and
INT-004-2.
a. Comments
    56. NERC and the IESO support the Commission's proposal to approve
these Reliability Standards.
b. Commission Determination
    57. Pursuant to section 215(d) of the FPA, the Commission approves
Reliability Standards INT-001-3 and INT-004-2 as mandatory and
enforceable.
2. INT-005-2--Interchange Authority Distributes Arranged Interchange,
INT-006-2--Response to Interchange Authority, and INT-008-2--
Interchange Authority Distributes Status
    58. Reliability Standard INT-005-1 applies to the interchange
authority. The stated purpose of proposed Reliability Standard INT-005-
1 is to ``ensure that the implementation of Interchange between Source
and Sink Balancing Authorities is distributed by an Interchange
Authority such that Interchange information is available for
reliability assessments.''
    59. Reliability Standard INT-006-1 applies to balancing authorities
and transmission service providers. The stated purpose of the
Reliability Standard is to ``ensure that each Arranged Interchange is
checked for reliability before it is implemented.''
    60. Reliability Standard INT-008-1 applies to the interchange
authority. The stated purpose of the Reliability Standard is to
``ensure that the implementation of Interchange between Source and Sink
Balancing Authorities is coordinated by an Interchange Authority.''
This means that it is an interchange authority's responsibility to
oversee and coordinate the interchange from one balancing authority to
another.
    61. In its December 26, 2007 filing, NERC addressed a reliability
need identified by WECC in its urgent action request. Specifically,
Requirement R1.4 of INT-007-1 requires that each balancing authority
and transmission service provider provide confirmation to the
interchange authority that it has approved the transactions for
implementation. NERC stated that for WECC the timeframe allotted for
this assessment is five minutes in the original version of the
Commission-approved Reliability Standards.
    62. Reliability Standards for INT-005-2, INT-006-2, and INT-008-2
increase the timeframe for applicable WECC entities to perform the
reliability assessment from five to ten minutes for next hour
interchange tags submitted in the first thirty minutes of the hour
before. According to NERC, this modification is needed because the
majority of next-hour tags in WECC are submitted between xx and xx:30.
The existing five minute assessment window makes it nearly impossible
for balancing authorities and transmission service providers to review
each tag before the five minute assessment time expires. According to
NERC, when the time expires, the tags are denied and must be
resubmitted.
    63. In its December 26, 2007 filing, NERC stated that WECC has
experienced numerous instances of transactions being denied because one
or more applicable reliability entities did not actively approve the
tag. In NERC's view, the current structure causes frustration and
inefficiencies for entities involved in this process, as requestors are
required to re-create tags that are denied. Further, NERC stated that
there is no reliability basis for a five minute assessment period for
tags submitted at least thirty minutes ahead of the ramp-in period.
    64. NERC noted that, prior to January 1, 2007, when the new INT
group of Reliability Standards was implemented, WECC had a ten-minute
reliability assessment period for next-hour tags. NERC states that the
urgent action request restores assessment times back to ten minutes.
    65. In the NOPR, the Commission proposed to approve INT-005-2, INT-
006-2, and INT-008-2.
a. Comments
    66. NERC and IESO support the Commission's proposal to approve
these Reliability Standards.
b. Commission Determination
    67. Pursuant to section 215(d) of the FPA, the Commission approves
Reliability Standards INT-005-2, INT-006-2, and INT-008-2 as mandatory
and enforceable.\31\
---------------------------------------------------------------------------

    \31\ The Commission notes that NERC's compliance with Order No.
693, with respect to Reliability Standard INT-006-1, is ongoing. See
Order No. 693, FERC Stats. & Regs. ] 31,242 at P 866.
---------------------------------------------------------------------------

III. Information Collection Statement

    68. The Office of Management and Budget (OMB) regulations require
that OMB approve certain reporting and recordkeeping (collections of
information) imposed by an agency.\32\ The information contained here
is also subject to review under section 3507(d) of the Paperwork
Reduction Act of 1995.\33\ As stated above, the Commission previously
approved, in Order No. 693, each of the Reliability Standards that are
the subject of the current rulemaking. In the NOPR, the Commission
explained that the modifications to the Reliability Standards are minor
and the interpretations relate to existing Reliability Standards;
therefore, they do not add to or increase entities' reporting burden.
Thus, in the NOPR, the Commission stated that the modified Reliability
Standards and interpretations of Reliability Standards do not
materially affect the burden estimates relating to the earlier version
of the Reliability Standards presented in Order No. 693.\34\
---------------------------------------------------------------------------

    \32\ 5 CFR 1320.11.
    \33\ 44 U.S.C. 3507(d).
    \34\ See Order No. 693, FERC Stats. & Regs. ] 31,242 at P 1905-
07. The NOPR, FERC Stats. & Regs. ] 32,632 at P 76-78, provided a
detailed explanation why each modification and interpretation has a
negligible, if any, effect on the reporting burden.
---------------------------------------------------------------------------

    69. In response to the NOPR, the Commission received no comments
concerning its estimate for the burden and costs and therefore uses the
same estimate here.

    Title: Modification of Interchange and Transmission Loading Relief
Reliability Standards; and Electric Reliability Organization
Interpretation of Specific Requirements of Four Reliability Standards.
    Action: Proposed Collection.
    OMB Control No.: 1902-0244.
    Respondents: Businesses or other for-profit institutions; not-for-
profit institutions.
    Frequency of Responses: On Occasion.
    Necessity of the Information: This Final Rule approves five
modified Reliability Standards that pertain to interchange scheduling
and coordination. It directs NERC to make a filing with the Commission
regarding one modified Reliability Standard that pertains to
transmission loading relief procedures. In addition, the Final Rule
approves interpretations of five specific requirements of Commission-
approved Reliability Standards. The Final Rule finds the Reliability
Standards and interpretations just, reasonable, not unduly
discriminatory or preferential, and in the public interest.
    70. Interested persons may obtain information on the reporting
requirements by contacting: Federal Energy Regulatory Commission, Attn:
Michael Miller, Office of the Executive Director, 888 First Street,
NE., Washington, DC 20426, Tel:<PHONE_NUMBER>, Fax:<PHONE_NUMBER>, E-
mail<EMAIL_ADDRESS>or by contacting: Office of Information
and Regulatory Affairs, Attn: Desk Officer for the Federal Energy
Regulatory Commission (Re: OMB Control No. 1902-0244), Washington, DC
20503, Tel:<PHONE_NUMBER>, Fax:<PHONE_NUMBER>, E-mail: oira_
<EMAIL_ADDRESS>
IV. Environmental Analysis

    71. 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.\35\ The
Commission has categorically excluded certain actions from this
requirement as not having a significant effect on the human
environment. Included in the exclusion are rules that are clarifying,
corrective, or procedural or that do not substantially change the
effect of the regulations being amended.\36\ The actions proposed
herein fall within this categorical exclusion in the Commission's
regulations.
---------------------------------------------------------------------------

    \35\ Regulations Implementing the National Environmental Policy
Act of 1969, Order No. 486, FERC Stats. & Regs. ] 30,783 (1987).
    \36\ 18 CFR 380.4(a)(2)(ii).
---------------------------------------------------------------------------

V. Regulatory Flexibility Act

    72. The Regulatory Flexibility Act of 1980 (RFA) \37\ generally
requires a description and analysis of final rules that will have
significant economic impact on a substantial number of small entities.
The RFA mandates consideration of regulatory alternatives that
accomplish the stated objectives of a proposed rule and that minimize
any significant economic impact on a substantial number of small
entities. The Small Business Administration's Office of Size Standards
develops the numerical definition of a small business. (See 13 CFR
121.201.) For electric utilities, a firm is small if, including its
affiliates, it is primarily engaged in the transmission, generation
and/or distribution of electric energy for sale and its total electric
output for the preceding twelve months did not exceed four million
megawatt hours. The RFA is not implicated by this Final Rule because
the minor modifications and interpretations discussed herein will not
have a significant economic impact on a substantial number of small
entities.
---------------------------------------------------------------------------

    \37\ 5 U.S.C. 601-12.
---------------------------------------------------------------------------

VI. Document Availability

    73. 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 FERC's Home Page (http://www.ferc.gov) and in FERC's
Public Reference Room during normal business hours (8:30 a.m. to 5 p.m.
Eastern time) at 888 First Street, NE., Room 2A, Washington, DC 20426.
    74. From FERC'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.
    75. User assistance is available for eLibrary and the FERC's Web
site during normal business hours from FERC Online Support at (202)
502-6652 (toll free at 1-866-208-3676) or e-mail at
<EMAIL_ADDRESS>or the Public Reference Room at (202) 502-
8371, TTY<PHONE_NUMBER>. E-mail the Public Reference Room at
<EMAIL_ADDRESS>
VII. Effective Date and Congressional Notification

    76. These regulations are effective August 27, 2008. The Commission
has determined, with the concurrence of the Administrator of the Office
of Information and Regulatory Affairs of OMB, that this rule is not a
``major rule'' as defined in section 351 of the Small Business
Regulatory Enforcement Fairness Act of 1996.

List of Subjects in 18 CFR Part 40

    Electric power, Electric utilities, Reporting and recordkeeping
requirements.

    By the Commission.
 Nathaniel J. Davis, Sr.,
 Deputy Secretary.
 [FR Doc. E8-17196 Filed 7-25-08; 8:45 am]

BILLING CODE 6717-01-P


1 MEMORANDUM SUBJECT: Inadvertent Errors in Final NSR Equipment Replacement Rule FROM: Jeffrey R. Holmstead Assistant Administrator for Air & Radiation Lisa K. Friedman Associate General Counsel Air & Radiation Law Office TO: The Administrator A number of inadvertent errors were made in the process of preparing the signature package for the final NSR equipment replacement rule that you signed on August 27. All of the corrections are listed below.

° Page 26, first paragraph, first sentence, delete " and there is no reason to believe that such activity will cause an emissions increase" from the end of the sentence.

° Page 49, 6th full sentence and 8th full sentence, delete " Abt", and change the " s" on the word " study" to lower case.

° Page 70, last full sentence starting with " A chemical manufacturing..." replace the words " control devices" with " process control or dual purpose air pollution control devices".

° Page 71, 1st paragraph, replace the 2nd sentence:

While we do not believe that these other definition proposal were necessarily inconsistent with our general definition of process unit, we had trouble including them in today's preamble in the absence of responding to concerns and 2 questions that our staff had over these new definitions.

With the following sentence:

While we do not believe that these other proposed definitions were necessarily inconsistent with our general definition of process unit, we had concerns and questions with some of these proposed definitions.

° Page 83 add the sentence " Today's rule applies only to conduct that occurs after the rule's effective date." to the end of the full paragraph in Section 2. General Issues.

° Page 95, 1st partial paragraph, last sentence, replace " with an appropriate safeguard like the basic design parameters" with " as long as the other safeguards in the rule are met".

° Page 98, 2nd sentence replace " adopt innovative solutions" with " use functionally equivalent components".

° Page 119, 2nd paragraph 2nd sentence after the word Chevron insert " , U. S. A. Inc. v. NRDC, 467 U. S. 837 ( 1984),".

° Page 153, remove reference to non existent regulatory provisions by omitting new paragraph ( i) in Section 51.165. Thus, in the first sentence of 2. b, replace " and paragraphs ( h) and ( i)" with " and paragraph ( h)."

° Page 161, remove reference to non existent regulatory provisions by omitting new paragraph ( z) in Section 51.166. Thus, in the first sentence of 3. b, replace " and paragraphs ( y) and ( z)" with " and paragraph ( y)."

° Page 169 remove reference to non existent regulatory provisions by omitting new paragraph ( dd) in Section 51.21. Thus, in the first sentence of 2. b, replace " and paragraphs ( cc) and ( dd)" with " and paragraph ( cc)."

We recommend that you correct these inadvertent errors by signing and dating the attached corrected pages.

Attachments