[Federal Register: August 23, 2010 (Volume 75, Number 162)]
[Notices]
[Page 51834-51835]
[DOCID:fr23au10-97]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Internal Agency Docket No. FEMA-1930-DR; Docket ID FEMA-2010-0002]

Iowa; Amendment No. 3 to Notice of a Major Disaster Declaration

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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SUMMARY: This notice amends the notice of a major disaster declaration
for the State of Iowa (FEMA-1930-DR), dated July 29, 2010, and related
determinations.

DATES: Effective Date: August 16, 2010.

FOR FURTHER INFORMATION CONTACT: Peggy Miller, Recovery Directorate,
Federal Emergency Management Agency, 500 C Street, SW., Washington, DC
20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The notice of a major disaster declaration
for the State of Iowa is hereby amended to include the following areas
among those

areas determined to have been adversely affected by the event declared
a major disaster by the President in his declaration of July 29, 2010.

Jasper, Mahaska, and Polk Counties for Individual Assistance
(already designated for Public Assistance.)

(The following Catalog of Federal Domestic Assistance Numbers (CFDA)
are to be used for reporting and drawing funds: 97.030, Community
Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis Counseling;
97.033, Disaster Legal Services; 97.034, Disaster Unemployment
Assistance (DUA); 97.046, Fire Management Assistance Grant; 97.048,
Disaster Housing Assistance to Individuals and Households in
Presidentially Declared Disaster Areas; 97.049, Presidentially
Declared Disaster Assistance--Disaster Housing Operations for
Individuals and Households; 97.050, Presidentially Declared Disaster
Assistance to Individuals and Households--Other Needs; 97.036,
Disaster Grants--Public Assistance (Presidentially Declared
Disasters); 97.039, Hazard Mitigation Grant.)

W. Craig Fugate,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2010-20768 Filed 8-20-10; 8:45 am]
BILLING CODE 9111-23-P


[Federal Register Volume 83, Number 101 (Thursday, May 24, 2018)]
[Notices]
[Page 24104]
[FR Doc No: 2018-11176]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 2103-006]

Notice of Application for Transfer of License and Soliciting
Comments, Motions To Intervene, and Protests: TCAI Incorporated; Waneta
Holdings (US) Inc.

    On May 2, 2018, TCAI Incorporated (transferor) and Waneta Holdings
(US) Inc. (transferee) filed an application for the transfer of license
of the Cedar Creek Project No. 2103. The project is located on Cedar
Creek in Stevens County, Washington, and partially occupies Federal
lands managed by the U.S. Department of Interior's Bureau of Land
Management.
    The applicants seek Commission approval to transfer the license for
the Cedar Creek Project from the transferor to the transferee.
    Applicants Contact: For transferor: Mr. Phil Pesek, Vice president
General Counsel & Secretary, TCAI Incorporated, 501 North Riverpoint
Blvd., Suite 300, Spokane, WA 99202, Phone:<PHONE_NUMBER>, Email:
[email protected] and Ms. Pamela J. Anderson, Perkins Coie LLP, 10885
NE 4th Street, Suite 700, Bellevue, WA 98004-5579, Phone:<PHONE_NUMBER>,
Email: [email protected].
    For transferee: Ms. Amy McCallion, Corporate Secretary, British
Columbia Hydro and Power Authority, 13th Floor, 333 Dunsmuir St.,
Vancouver, B.C. V6B 5R3, Canada, Phone:<PHONE_NUMBER>, Email:
[email protected], Mr. David R. Poe, Bracewell LLP, 2001 M
Street NW, Suite 900, Washington, DC 20006, Phone:<PHONE_NUMBER>, Email:
[email protected], and Ms. Jessica W. Miller, Bracewell LLP, 2300
Congress Ave., Suite 2300, Austin, TX 78701, Phone:<PHONE_NUMBER>,
Email: [email protected].
    FERC Contact: Patricia W. Gillis,<PHONE_NUMBER>,
[email protected].
    Deadline for filing comments, motions to intervene, and protests:
30 days from the date that the Commission issues this notice. The
Commission strongly encourages electronic filing. Please file comments,
motions to intervene, and protests using the Commission's eFiling
system at http://www.ferc.gov/docs-filing/efiling.asp. Commenters can
submit brief comments up to 6,000 characters, without prior
registration, using the eComment system at http://www.ferc.gov/docs-filing/ecomment.asp. You must include your name and contact information
at the end of your comments. For assistance, please contact FERC Online
Support at [email protected],<PHONE_NUMBER> (toll free), or
(202) 502-8659 (TTY). In lieu of electronic filing, please send a paper
copy to: Secretary, Federal Energy Regulatory Commission, 888 First
Street NE, Washington, DC 20426. The first page of any filing should
include docket number P-2103-006.

    Dated: May 18, 2018.
Kimberly D. Bose,
Secretary.
[FR Doc. 2018-11176 Filed 5-23-18; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 82, Number 185 (Tuesday, September 26, 2017)]
[Rules and Regulations]
[Pages 44723-44731]
[FR Doc No: 2017-20554]

=======================================================================
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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 40

[Docket No. RM16-13-000; Order No. 836]

Balancing Authority Control, Inadvertent Interchange, and
Facility Interconnection Reliability Standards

AGENCY: Federal Energy Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) approves
Reliability Standards BAL-005-1 (Balancing Authority Control) and FAC-
001-3 (Facility Interconnection Requirements), submitted by the North
American Electric Reliability Corporation, as well as the retirement of
Reliability Standards BAL-005-0.2b (Automatic Generation Control), FAC-
001-2 (Facility Interconnection Requirements), and BAL-006-2
(Inadvertent Interchange).

DATES: This rule will become effective November 27, 2017.

FOR FURTHER INFORMATION CONTACT:
Syed Ahmad (Technical Information), Office of Electric Reliability,
Division of Reliability Standards, Federal Energy Regulatory
Commission, 888 First Street NE., Washington, DC 20426, Telephone:
(202) 502-8718<EMAIL_ADDRESS>Julie Greenisen (Legal Information), Office of the General Counsel,
Federal Energy Regulatory Commission, 888 First Street NE., Washington,
DC 20426, Telephone:<PHONE_NUMBER><EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

ORDER NO. 836

FINAL RULE

    1. Pursuant to section 215 of the Federal Power Act (FPA),\1\ the
Commission approves Reliability Standards BAL-005-1 (Balancing
Authority Control) and FAC-001-3 (Facility Interconnection
Requirements), submitted by the North American Electric Reliability
Corporation (NERC), as well as the retirement of Reliability Standards
BAL-005-0.2b (Automatic Generation Control), FAC-001-2 (Facility
Interconnection Requirements), and BAL-006-2 (Inadvertent Interchange).
The Commission also approves the associated implementation plans,
violation risk factors, and violation severity levels for Reliability
Standards BAL-005-1 and FAC-001-3. Finally, the Commission approves
three revised definitions for the glossary of terms used in NERC's
Reliability Standards (NERC Glossary).
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    \1\ 16 U.S.C. 824(o).
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    2. The Commission determines that Reliability Standards BAL-005-1
and FAC-001-3 will enhance the reliability of the Bulk-Power System, as
compared to currently-effective Reliability Standards BAL-005-0.2b and
FAC-001-2, by clarifying and consolidating existing requirements
related to frequency control. In addition, the Commission determines
that the revised Reliability Standards support more accurate and
comprehensive calculation of Reporting Area Control Error (Reporting
ACE), by requiring timely reporting of an inability to calculate
Reporting ACE and by requiring balancing authorities to maintain
minimum levels of annual availability of 99.5 percent for each
balancing authority's system for calculating Reporting ACE. Based on
the information received in the comments on the Notice of Proposed
Rulemaking in this proceeding,\2\ as well as in response to a
subsequent data request issued to NERC,\3\ the Commission has
determined that it will not, at this time, direct NERC to restore
existing requirements in Requirement R15 of Reliability Standard BAL-
005-0.2b related to maintaining and testing backup power supplies at
primary control centers and other critical locations. We also approve
NERC's request to retire Reliability Standard BAL-006-2, BAL-005-0.2b
and FAC-001-2 upon the effective date of Reliability Standard BAL-005-
1.
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    \2\ Balancing Authority Control, Inadvertent Interchange, and
Facility Interconnection Reliability Standards, Notice of Proposed
Rulemaking, 81 FR 66,555 (Sept. 28, 2016), 156 FERC ] 61,210 (2016)
(NOPR).
    \3\ See Response of the North American Electric Corporation to
Data Request, Docket No. RM16-13-000 (April 7, 2017).
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I. Background

A. Mandatory Reliability Standards and Order No. 693

    3. Section 215 of the FPA requires a Commission-certified Electric
Reliability Organization (ERO) to develop mandatory and enforceable
Reliability Standards that are subject to Commission review and
approval. Specifically, the Commission may approve, by rule or order, a
proposed Reliability Standard or modification to a Reliability Standard
if it determines that the Reliability Standard is just, reasonable, not
unduly discriminatory or preferential and in the public interest.\4\
Once approved, the Reliability Standards may be enforced by NERC,
subject to Commission oversight, or by the Commission independently.\5\
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    \4\ 16 U.S.C. 824o(d)(2).
    \5\ Id. 824o(e).
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    4. Pursuant to section 215 of the FPA, the Commission established a
process to select and certify an ERO,\6\ and subsequently certified
NERC as the ERO.\7\ On March 16, 2007, the Commission issued Order No.
693, approving 83 of the initial 107 Reliability Standards filed by
NERC, including Reliability Standards BAL-005-0 (Automatic Generation
Control), FAC-001-0 (Facility Interconnection Requirements), and BAL-
006-1 (Inadvertent Interchange).\8\ In addition to approving
Reliability Standards BAL-005-0 and BAL-006-1, the Commission directed
NERC to develop modifications to those Reliability Standards through

the NERC standards development process.
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    \6\ 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).
    \7\ North American Electric Reliability Corp., 116 FERC ]
61,062, order on reh'g and compliance, 117 FERC ] 61,126 (2006),
aff'd sub nom. Alcoa, Inc. v. FERC, 564 F.3d 1342 (D.C. Cir. 2009).
    \8\ Mandatory Reliability Standards for the Bulk-Power System,
Order No. 693, FERC Stats. & Regs. ] 31,242 at PP 420, 439, and 680,
order on reh'g, Order No. 693-A, 120 FERC ] 61,053 (2007).
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    5. With respect to Reliability Standard BAL-005-0, the Commission
directed NERC to develop a modification that:
    (1) develops a process to calculate the minimum regulating reserve
a balancing authority must have at any given time taking into account
expected load and generation variation and transactions being ramped
into or out of the balancing authority; (2) changes the title of the
Reliability Standard to be neutral as to the source of regulating
reserves and to allow the inclusion of technically qualified DSM and
direct control load management; (3) clarifies Requirement R5 of this
Reliability Standard to specify the required type of transmission or
backup plans when receiving regulation from outside the balancing
authority when using non-firm service; and (4) includes Levels of Non-
Compliance and a Measure that provides for a verification process over
the minimum required automatic generation control or regulating
reserves a balancing authority must maintain.\9\
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    \9\ Id. P 420.
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    Subsequently, the Commission approved one interpretation of
Reliability Standard BAL-005-0 and two errata filings.\10\ The
currently-effective version of the Reliability Standard is BAL-005-
0.2b.
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    \10\ See Modification of Interchange and Transmission Loading
Relief Reliability Standards; and Electric Reliability Organization
Interpretation of Specific Requirements of Four Reliability
Standards, Order No. 713, 124 FERC ] 61,071 (2008); North American
Electric Reliability Corp., Docket No. RD09-2-000 (May 13, 2009)
(delegated letter order); North American Electric Reliability Corp.,
Docket No. RD12-4-000 (Sept. 13, 2012) (delegated letter order).
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    6. With respect to Reliability Standard BAL-006-1, the Commission
directed NERC to develop a modification ``that adds Measures concerning
the accumulation of large inadvertent imbalances and Levels of Non-
Compliance.'' \11\ The Commission explained the need for such a
modification as follows:
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    \11\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 428.
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    While we agree that inadvertent imbalances do not normally affect
the real-time operations of the Bulk-Power System and pose no immediate
threat to reliability, we are concerned that large imbalances represent
dependence by some balancing authorities on their neighbors and are an
indication of less than desirable balancing of generation with load.
The Commission also notes that the stated purpose of this Reliability
Standard is to define a process for monitoring balancing authorities to
ensure that, over the long term, balancing authorities do not
excessively depend on other balancing authorities in the
Interconnection for meeting their demand or interchange
obligations.\12\
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    \12\ Id.
---------------------------------------------------------------------------

    Since then, the Commission has approved one revision to Reliability
Standard BAL-006-1 to remove the regional waiver of certain
requirements for the Midcontinent ISO, following the Midcontinent ISO's
transition to a single balancing authority model.\13\ The currently-
effective version of the Reliability Standard is BAL-006-2.
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    \13\ See North American Electric Reliability Corp., 134 FERC ]
61,007 (2011).
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B. NERC Petition

    7. On April 20, 2016, NERC filed a petition seeking approval of
Reliability Standards BAL-005-1 (Balancing Authority Control) and FAC-
001-3 (Facility Interconnection Requirements), nine new or revised
definitions associated with the Reliability Standards, and retirement
of currently-effective Reliability Standards BAL-005-0.2b (Automatic
Generation Control), FAC-001-2 (Facility Interconnection Requirements),
and BAL-006-2 (Inadvertent Interchange).
    8. In its petition, NERC requested that the two modified
Reliability Standards and the revised definitions of Automatic
Generation Control, Pseudo-Tie, and Balancing Authority become
effective on the first day of the first calendar quarter twelve months
from the effective date of the applicable governmental authority's
approval of NERC's petition. NERC also requested that the retirement of
Reliability Standard BAL-006-2 become effective upon the latter of the
effective date of proposed Reliability Standard BAL-005-1 and the NERC
Operating Committee's approval of an Inadvertent Interchange Guideline
document.
    9. For the six remaining definitions (Reporting ACE \14\ and its
component definitions: Actual Frequency, Actual Net Interchange,
Scheduled Net Interchange, Interchange Meter Error, and Automatic Time
Error Correction), NERC initially requested an effective date of July
1, 2016, to coincide with the effective date for Reliability Standard
BAL-001-2. However, NERC subsequently withdrew its request for approval
of the six Reporting ACE-related definitions from the instant docket,
and filed for expedited approval of the six definitions in a separate
docket. The six definitions were approved by delegated letter order on
June 23, 2016, and are no longer at issue in the instant
proceeding.\15\
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    \14\ NERC states that Reporting ACE ``represents a Balancing
Authority Area's (BAA's) Area Control Error (ACE) measured in
megawatts (MW) as the difference between the BAA's Actual and
Scheduled Net Interchange, plus its Frequency Bias Setting
obligation and meter error corrections. Reporting ACE helps
Responsible Entities provide reliable frequency control by
indicating the current state of the entity's contribution to
Reliability.'' NERC Petition at 3.
    \15\ North American Electric Reliability Corp., Docket No. RD16-
7-000 (June 23, 2016) (delegated letter order).
---------------------------------------------------------------------------

    10. NERC explained in its petition that Reliability Standards BAL-
005-1 and FAC-001-3, and the proposed retirement of Reliability
Standard BAL-006-2, came about as part of the second phase of NERC's
project to ``clarify, consolidate, streamline, and enhance the
Reliability Standards addressing frequency control.'' \16\ NERC
indicated in its petition that the standard drafting team developed the
proposed revisions after reviewing applicable Commission directives,
``Paragraph 81'' criteria, and the recommendations of the periodic
review team that examined Reliability Standards BAL-005-0.2b and BAL-
006-2.\17\
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    \16\ NERC Petition at 2 (referencing Project 2010-14.2.1 Phase 2
of Balancing Authority Reliability-based Controls).
    \17\ Id. at 3 (citing North American Electric. Reliability
Corp., 138 FERC ] 61,193 at P 81, order on reh'g and clarification,
139 FERC ] 61,168 (2012); Petition of the North American Electric
Reliability Corporation for Approval of Retirement of Requirements
in Reliability Standards, Docket No. RM13-8-000, at Exhibit A
(``Paragraph 81 Criteria'') (filed Feb. 28, 2013); North American
Electric Reliability Corp. Order No. 788, 145 FERC ] 61,147 (2013)).
---------------------------------------------------------------------------

    11. NERC described the revisions to Reliability Standard BAL-005-
0.2b as clarifying and refining the current requirements ``for
accurate, consistent, and complete'' reporting of Reporting ACE, which
is a key frequency control and reliability indicator.\18\ These
revisions include relocating some of the current requirements of
Reliability Standard BAL-005-0.2b, which relate to confirming that
facilities are within a balancing authority's metered boundary, into
Reliability Standard FAC-001-3. In addition, NERC proposed to relocate
Requirement R3 of currently-effective Reliability Standard BAL-006-2
into Reliability Standard BAL-005-1, explaining that the requirement
relates to ensuring that balancing authorities use consistent data
sources to calculate Reporting ACE, and therefore more properly belongs
in Reliability Standard BAL-005.
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    \18\ Id.
---------------------------------------------------------------------------

    12. NERC explained that the revised Reliability Standards
``represent substantial improvements over existing Reliability
Standards by helping to support more accurate and comprehensive
calculation of Reporting

ACE and satisfying all remaining Commission directives for Reliability
Standards BAL-005 and BAL-006.'' \19\ Further, NERC maintained that
Reliability Standard BAL-005-1 is an improvement over the currently-
effective version, BAL-005-0.2b, because it ``consolidates unnecessary
or repetitive Requirements and moves certain metrics for calculating
Reporting ACE to the revised, proposed definition of Reporting ACE.''
\20\ Among other things, NERC proposed to move requirements applicable
to generator operators and transmission operators in currently-
effective Reliability Standard BAL-005-0.2b, into a more appropriate
Reliability Standard, explaining that ``[a]s the purpose of FAC-001-3
is more commensurate with interconnection responsibilities,
interconnection procedures contained in currently effective BAL-005-
0.2b should be included in proposed Reliability Standard FAC-001-3.''
\21\
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    \19\ Id. at 12.
    \20\ Id. at 13.
    \21\ Id. at 23.
---------------------------------------------------------------------------

    13. In addition, NERC asserted that Reliability Standard BAL-005-1
improves on the currently-effective version of the Reliability Standard
because proposed Requirement R2 clarifies the performance expectations
for notification to reliability coordinators when a balancing authority
is unable to calculate Reporting ACE for 30 minutes or more,\22\ and
Requirement R5 ``introduces a new obligation . . . to assure the
availability of a BA's system used to calculate Reporting ACE,''
requiring a minimum availability of 99.5 percent in each calendar
year.\23\
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    \22\ Id. at 16.
    \23\ Id. at 19.
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    14. NERC stated that the package of revisions reflected in its
petition addresses the outstanding directives related to Reliability
Standards BAL-005 and BAL-006 from Order No. 693. Specifically, NERC
stated that the title of Reliability Standard BAL-005-1 has been
modified from Automatic Generation Control to Balancing Authority
Control ``to reflect the connection to Reporting ACE and resource-
neutral requirements.'' \24\ In addition, NERC indicated that it has
revised the definition of Automatic Generation Control to ensure a
resource-neutral process for controlling demand and resources.\25\
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    \24\ Id. at 13 (referencing Order No. 693, FERC Stats. & Regs. ]
31,242 at P 404, and noting that the Commission's directive related
to resource-neutrality for regulating reserves is now moot, as
Requirement R2 of Reliability Standard BAL-005-0.2b, which required
entities to maintain regulating reserves, has been retired).
    \25\ Id. at n.39.
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    15. NERC also stated that the requirements of Reliability Standard
BAL-005-1 all have a ``medium'' violation risk factor, thereby
addressing the Commission's directive to revise the violation risk
factor for Reliability Standard BAL-005-0, Requirement R17 to
``medium.'' \26\ Similarly, NERC asserted that it met the directive to
consider Xcel and FirstEnergy's comments about the scope of Requirement
R17, which set minimum accuracy requirements for time error and
frequency devices, by retiring part of the currently-effective
requirement and moving the minimum accuracy requirements into
Requirement R3 of Reliability Standard BAL-005-1. NERC maintained that
this response has ``streamlined obligations to use specific frequency
metering equipment that is necessary for operation of [automatic
generation control (AGC)] and accurate calculation of Reporting ACE, as
this ensures that costs associated with implementation are commensurate
with reliability benefit.'' \27\
---------------------------------------------------------------------------

    \26\ Id. at 17; see also North American Elec. Reliability Corp.,
121 FERC ] 61,179, at P 58 (2007).
    \27\ NERC Petition at 18.
---------------------------------------------------------------------------

    16. NERC proposed to move Requirement R3 from currently-effective
Reliability BAL-006-2 into Reliability Standard BAL-005-1, but NERC
proposed to retire the rest of the requirements of Reliability Standard
BAL-006-2 (Requirements R1, R2, R4, and R5). NERC stated that the
standard drafting team determined that, aside from Requirement R3, each
of the requirements in Reliability Standard BAL-006-2 are ``energy
accounting standards'' and/or are ``administrative'' in nature, and
should accordingly be retired.\28\
---------------------------------------------------------------------------

    \28\ Id. at 25-26.
---------------------------------------------------------------------------

    17. NERC acknowledged that the Commission previously directed it to
develop measures concerning the accumulation of large inadvertent
imbalances, based on the Commission's concern that large imbalances may
indicate an underlying problem. NERC explained, however, that the
requirements of Reliability Standard BAL-001-2, which require balancing
authorities to maintain clock-minute ACE within the Balancing Authority
ACE Limit, as well as the requirements of Reliability Standard BAL-003-
1 and proposed Reliability Standard BAL-002-2, which require entities
to restore Reporting ACE within predefined bounds, prevent any
excessive dependency on other entities. As NERC explained in its
petition:
    Because entities are supporting frequency through this coordinated
suite of reliability standards, entities will not excessively depend on
other entities in the Interconnection such that the purely economic
issue that was addressed by BAL-006-2 becomes a reliability issue for a
NERC Reliability Standard.\29\
---------------------------------------------------------------------------

    \29\ Id. at 27.
---------------------------------------------------------------------------

    18. In order to address ``any remaining or potential concerns with
retirement of BAL-006-2,'' NERC proposed that the retirement become
effective only upon the Operating Committee's approval of an
Inadvertent Interchange Guideline document.\30\ NERC stated that the
Inadvertent Interchange Guideline document was based on a white paper
developed by the standard drafting team for Reliability Standards BAL-
005 and BAL-006, and maintained that it provides an in-depth
justification for why a NERC Reliability Standard is not necessary for
inadvertent interchange.
---------------------------------------------------------------------------

    \30\ The Inadvertent Interchange Guideline document was
subsequently approved by the NERC Operating Committee, on December
13, 2016. See NERC, Reliability Guideline: Inadvertent Interchange
(Dec. 13, 2016, http://www.nerc.com/comm/OC/Reliability%20Guideline%20DL/Reliability_Guideline_Inadvertent_Interchange.pdf.
---------------------------------------------------------------------------

    19. With respect to the three proposed definitions that remain at
issue in this proceeding, NERC explained that: (1) ``Automatic
Generation Control'' has been revised to set forth a resource-neutral
process for controlling demand and resources; (2) ``Pseudo-Tie'' has
been updated to reflect the use of the term ``Reporting ACE;'' and (3)
``Balancing Authority'' has been revised to more accurately describe a
balancing authority's resource demand function.

C. NERC Supplemental Filing

    20. On June 14, 2016, NERC submitted supplemental information in
support of its April 20, 2016 petition (Supplemental Filing), to
provide additional explanation and support for the retirement of
Requirement R15 in currently-effective Reliability Standard BAL-005-
0.2b.\31\ In its Supplemental Filing, NERC maintained that Requirement
R15 should be retired because the objectives of that requirement (i.e.,
to ensure the continued operation of AGC and certain data recording
equipment during the loss of normal power supply) are being addressed
through other Reliability Standards and requirements. Specifically,
NERC maintained that

Reliability Standard EOP-008-1 requires a balancing authority to have a
backup control center facility and an operating plan that allows it to
meet its functional obligations with regard to the reliable operation
of the bulk electric system in the event that its primary control
center functionality is lost.\32\
---------------------------------------------------------------------------

    \31\ As NERC notes in its Supplemental Filing, NERC stated in
its initial petition that ``Requirements R2, R7 and R15 . . . are
redundant, ineffective, and should be retired based on Commission-
approved Paragraph 81 Criteria.'' NERC Supplemental Filing at 1
(quoting NERC Petition at 15).
    \32\ NERC Supplemental Filing at 2.
---------------------------------------------------------------------------

    21. In addition, NERC maintained that the proposed performance
requirements of Requirement R3 of Reliability BAL-005-1, which would
require balancing authorities to ``use frequency metering equipment for
the calculation of Reporting ACE that is available a minimum of 99.95%
of each calendar year,'' will help to ensure that balancing authorities
can continuously operate the equipment necessary for the calculation of
Reporting ACE, effectively eliminating the need for Requirement
R15.\33\
---------------------------------------------------------------------------

    \33\ Id. at 4.
---------------------------------------------------------------------------

D. Notice of Proposed Rulemaking and Data Request

    22. On September 22, 2016, the Commission issued a notice of
Proposed Rulemaking proposing to approve Reliability Standards BAL-005-
1 and FAC-001-3, as replacements for the existing versions of those
standards, and to approve the retirement of Reliability Standard BAL-
006-2 on the latter of the effective date of BAL-005-1 or the NERC
Operating Committee's approval of an Inadvertent Interchange Guideline.
In the NOPR, the Commission raised several questions about the impact
of eliminating Requirement R15 from currently-effective Reliability
Standard BAL-005-0.2b, which requires responsible entities to maintain
and periodically test backup power supplies at primary control centers
and other critical locations.\34\ The Commission indicated that,
depending on the information received in comments in response to its
questions, it may decide to issue a directive to restore the substance
of Requirement R15 as part of a final rule.\35\
---------------------------------------------------------------------------

    \34\ NOPR, 156 FERC ] 61,210 at PP 26-33.
    \35\ Id. P 25.
---------------------------------------------------------------------------

    23. Five sets of comments were filed in response to the NOPR.\36\
Subsequently, the Commission staff issued a data request to NERC
seeking additional information about the current practices of a
representative sample of entities concerning the use of backup power
supplies.\37\ Specifically, the Commission sought further information
from a sample of existing balancing authorities, reliability
coordinators, and transmission operators related to the kinds of backup
power supply they maintain at control centers and other critical
locations, including current testing practices for those backup power
supplies. NERC submitted its response to the data request on April 7,
2017.
---------------------------------------------------------------------------

    \36\ The Appendix lists the entities that submitted comments and
the shortened names used throughout this Final Rule to describe
those entities.
    \37\ Data Request in Response to Petition Seeking Approval of
Reliability Standards BAL-005-1 and FAC-001-3, Docket No. RM16-13-
000 (March 7, 2017) (March 7 Data Request).
---------------------------------------------------------------------------

II. Discussion

    24. Pursuant to FPA section 215(d)(2), the Commission approves
Reliability Standards BAL-005-1 and FAC-001-3 as just, reasonable, not
unduly discriminatory or preferential, and in the public interest.
Reliability Standard BAL-005-1 and FAC-001-3 will enhance reliability
as compared to currently-effective Reliability Standards BAL-005-0.2b
and FAC-001-2, because the Reliability Standards clarify and
consolidate existing requirements related to frequency control. In
addition, Reliability Standard BAL-005-1 supports more accurate and
comprehensive calculation of Reporting ACE by requiring timely
reporting of an inability to calculate Reporting ACE (Requirement R2)
and by requiring minimum levels of availability and accuracy for each
balancing authority's system for calculating Reporting ACE (Requirement
R5).
    25. We also approve the violation risk factors and violation
severity levels associated with Reliability Standards BAL-005-1 and
FAC-001-3; the revisions to the definitions of Automatic Generation
Control, Pseudo-Tie, and Balancing Authority as proposed by NERC; the
retirement of Reliability Standards BAL-005-0.2b, FAC-001-2, and BAL-
006-2 in accordance with NERC's implementation plan; \38\ and NERC's
implementation plans for proposed Reliability Standards BAL-005-1 and
FAC-001-3.
---------------------------------------------------------------------------

    \38\ As discussed above, NERC requested that the retirement of
Reliability Standard BAL-006-2 become effective upon the latter of
the effective date of proposed Reliability Standard BAL-005-1 and
the NERC Operating Committee's approval of the Inadvertent
Interchange Guideline document. Because the NERC Operating Committee
has now approved the guideline document, we approve the retirement
of BAL-006-2 as of the date BAL-005-1 goes into effect.
---------------------------------------------------------------------------

    26. As discussed below, the Commission determines not to direct
NERC to restore the requirement, currently found in Requirement R15 of
Reliability Standard BAL-005-0.2b, to maintain and test backup power
supplies at primary control centers and other critical locations at
this time.

A. Reliability Standards BAL-005-1 and FAC-001-3 NOPR

    27. In the NOPR, the Commission proposed to approve Reliability
Standards BAL-005-1 and FAC-001-3. The Commission noted that the
modified Reliability Standards would clarify and consolidate existing
requirements related to frequency control, and that Reliability
Standard BAL-005-1 would support more accurate and comprehensive
calculation of Reporting ACE.
Comments
    28. NERC, Trade Associations, and BPA submitted comments in support
of the Commission's proposal to approve Reliability Standards BAL-005-1
and FAC-001-3. NERC maintains, as it did in its petition and
supplemental filing, that the modified Reliability Standards not only
address all remaining directives related to BAL-005 and BAL-006, but
also ``substantially improve existing frequency control requirements
and support stronger frequency control performance.'' \39\ Similarly,
Trade Associations argue that the Reliability Standards will support
more accurate and comprehensive calculation of Reporting ACE, as the
Commission recognized in the NOPR.\40\
---------------------------------------------------------------------------

    \39\ NERC Comments at 4.
    \40\ Trade Associations Comments at 4.
---------------------------------------------------------------------------

Commission Determination
    29. We approve Reliability Standards BAL-005-1 and FAC-001-3. As
proposed in the NOPR, the Commission determines that the modified
Reliability Standards will, overall, enhance reliability by clarifying
and consolidating existing requirements related to frequency control.
Specifically, the Reliability Standards will support more accurate and
comprehensive calculation of Reporting ACE by requiring timely
reporting of an inability to calculate Reporting ACE and by requiring
balancing authorities to maintain minimum levels of annual availability
of 99.5 percent for each balancing authority's system for calculating
Reporting ACE.

B. Retirement of Reliability Standard BAL-005-0.2b, Requirement R15
NOPR

    30. The NOPR observed that Reliability Standard BAL-005-1 does not
include a requirement comparable to currently-effective Requirement R15
of Reliability Standard BAL-005-0.2b, which states as follows:

    The Balancing Authority shall provide adequate and reliable
backup power supplies and shall periodically test these supplies at
the Balancing Authority's control center and

other critical locations to ensure continuous operation of AGC and
vital data recording equipment during loss of the normal power
supply.\41\
---------------------------------------------------------------------------

    \41\ See NOPR, 156 ] 61,210 at P 26.

    31. The NOPR recognized that the approach taken in Reliability
Standard BAL-005-1, when combined with the requirements of other
Reliability Standards requiring entities to meet their functional
obligations in the event of the loss of a primary control center, was
intended to be a more performance-based approach to ensuring reliable
operation of the bulk electric system.\42\ However, the Commission
expressed concern that the objectives of Requirement R15 would not be
fully met by the other Reliability Standards and requirements NERC had
identified, and in particular pointed out the following potential gap:
---------------------------------------------------------------------------

    \42\ Id. at 30.

    Requirement R15 of currently-effective Reliability Standard BAL-
005-0.2b helps to ensure continued operability of balancing
authorities' primary control centers, despite the loss of normal
power supply, without evacuation to or activation of backup control
centers. Thus, this provision appears to provide additional
robustness in the primary control center and mitigates the risk of
problems occurring in the transition to a secondary control
center.\43\
---------------------------------------------------------------------------

    \43\ Id. P 31.

    The NOPR also pointed out that balancing authorities currently
appear to be the only type of functional entity explicitly required to
have and to test adequate and reliable backup supply at critical
locations, and that there is no provision parallel to Requirement R15
for reliability coordinators or transmission operators.\44\
---------------------------------------------------------------------------

    \44\ Id. P 30.
---------------------------------------------------------------------------

    32. The NOPR requested comments from NERC and others on the
retirement of Requirement R15 of Reliability Standard BAL-005-0.2b,
specifically asking for comment on the benefits and potential burden of
retaining Requirement R15, and an explanation as to why there is no
parallel to Requirement R15 for reliability coordinators and
transmission operators, including whether any reason exists to
distinguish between balancing authorities and other entities that may
operate a control center or critical facility.\45\ In addition, the
Commission asked commenters to respond to six specific questions
regarding the impact of retiring Requirement R15; current practices
with respect to backup power supply at control centers; and the scope
of other requirements identified by NERC as fulfilling the same
objectives as current Requirement R15.\46\
---------------------------------------------------------------------------

    \45\ Id. P 32.
    \46\ Id. P 33.
---------------------------------------------------------------------------

Comments
    33. NERC, Trade Associations, and BPA maintain that Requirement R15
should be retired without further directive from the Commission, as the
results-based requirements of Reliability Standard BAL-005-1 represent
a more comprehensive and superior approach. NERC asserts that
Reliability Standard EOP-008-1's results-based or functionality-based
approach is preferable overall,\47\ while Trade Associations and other
commenters point out that the performance levels required in
Reliability Standard BAL-005-1, Requirements R3 and R5, cannot be
achieved without having critical backup systems, including a backup
power supply that is routinely maintained and tested.\48\
---------------------------------------------------------------------------

    \47\ NERC Comments at 8-9.
    \48\ Trade Associations Comments at 8; see also BPA Comments at
4.
---------------------------------------------------------------------------

    34. NERC contends that the existing requirements of R15 focus on
only one factor contributing to reliable control center performance
(i.e., backup power supplies), while Reliability Standard BAL-005-1
includes two performance obligations ``that subsume requirement R15.''
\49\ Specifically, NERC points out that Requirement R3 requires
balancing authorities to use frequency metering equipment for
calculation of Reporting ACE that is available at least 99.95 percent
annually, with minimum accuracy of 0.001 Hz, and Requirement R5
requires that each system used by a balancing authority to calculate
Reporting ACE also be available at least 99.5 percent annually. NERC
states that these performance obligations, which provide no exceptions
and include other critical elements such as data acquisition and
communications, frequency metering, and ACE calculation systems,
contrast with existing Requirement R15, which focuses on only one
component (power supply) that contributes to performance.\50\ In
addition, NERC maintains that new Requirement R3 ``will ensure virtual
`continuous operation of AGC and vital data recording equipment during
loss of the normal power supply,' '' thereby effectively replacing
Requirement R15.\51\
---------------------------------------------------------------------------

    \49\ NERC Comments at 5; Trade Associations Comments at 7-9.
    \50\ NERC Comments at 6; see also Trade Associations Comments at
8 (asserting that Reliability Standard BAL-005-1's required minimum
performance level for calculating ACE ``provides real performance
measures that far exceed'' the current requirements of BAL-005-0.2b,
and that ``entities will not be able to ensure that they can achieve
this level of performance without having critical backups,''
including reliable backup power).
    \51\ Id. at 6 (responding to NOPR Question 5).
---------------------------------------------------------------------------

    35. NERC also maintains, as it did in its petition, that
Requirement R15 should be retired, as it is redundant with broader
obligations imposed on balancing authorities, reliability coordinators,
and transmission operators in Reliability Standard EOP-008-1. NERC
contends that applicable entities cannot comply with Reliability
Standard EOP-008-1 without addressing power sources, although NERC
acknowledges that backup power supply may not always be necessary to
support the required backup functionality for control center functions.
NERC further points out that the functionality obligations under
Requirement R1 of Reliability Standard EOP-008-1 include the obligation
to address operation of vital equipment necessary for the collection of
data to calculate Reporting ACE, assuming frequency metering equipment
does not meet the minimum performance requirement under new Requirement
R3 of BAL-005-1.\52\ Overall, NERC maintains that Requirements R1 and
R7 of Reliability Standard EOP-008-1 ``are broader and clearer than
Requirement R15, by requiring [applicable entities] to have in place
and test Operating Plans that address all elements (including any power
sources) necessary for backup functionality.'' \53\
---------------------------------------------------------------------------

    \52\ Id. at 8-9 (responding to NOPR Question 6).
    \53\ Id. at 10.
---------------------------------------------------------------------------

    36. Trade Associations maintain, on a more general level, that
overly-prescriptive requirements can be burdensome and often
ineffective. Trade Associations assert that in determining whether
there is adequate justification for the retirement of Requirement R15,
the Commission should assess ``whether [the new and remaining]
requirements have sufficient rigor to ensure [bulk electric system]
reliability through the continuous efforts to design, build and
maintain systems to achieve the desired level of performance.'' \54\
Trade Associations note that NERC's Independent Expert Review Panel
concluded that results-based Reliability Standards would improve
overall reliability.\55\ Moreover, Trade Associations contend that the
absence of a recommendation by the Independent Expert Review Panel to
retire Requirement R15 as part of its 2013 report has no bearing on the
question of

retirement now, given the improvements and enhancements associated with
Reliability BAL-005-1. Finally, Trade Associations raise a concern that
the Commission may be misconstruing Reliability Standard BAL-005-0.2b
to address a reliability concern beyond that intended for BAL-005.
Trade Associations maintain that the BAL-005 Reliability Standards
``were written for the express purpose of ensuring [balancing
authorities] can reliably and effectively calculate Reporting ACE in
order to maintain resource and demand balance within their area of
responsibility.'' \56\
---------------------------------------------------------------------------

    \54\ Trade Associations Comments at 6-7.
    \55\ Id. at 7 (citing Standards Independent Expert Review
Project; Chapter 5; Conclusions; at 18).
    \56\ Id. at 7.
---------------------------------------------------------------------------

    37. As to what obligations would still exist under Reliability
Standard EOP-008-1 if the backup power supply obligation in Requirement
R15 was retired, NERC, Trade Associations, and all other commenters
addressing the question acknowledge that EOP-008-1 does not require
applicable entities to have backup power supply at the primary or the
secondary control center.\57\ However, NERC asserts that backup
functionality obligations under Requirement R1 of Reliability Standard
EOP-008-1 ``include the obligation to address operation of vital
equipment necessary for the collection of data to calculate Reporting
ACE if frequency metering equipment does not meet the minimum
performance requirements under proposed R3 of BAL-005-1.'' \58\ By
contrast, the Trade Associations acknowledge that Reliability Standard
EOP-008-1 does not ensure continuous operation of AGC and vital data
recording equipment during the loss of normal power supply.\59\
---------------------------------------------------------------------------

    \57\ NERC notes, for example, that Reliability Standard EOP-008-
1, Requirement R1 requires entities to address power and backup
power as part of their emergency plans, but acknowledges that it
does not necessarily require backup power at either the primary or
secondary control center. See also Trade Associations at 12; BPA at
3 (stating that without R15, BPA ``does not believe there is an
enforceable requirement to have a backup power supply to support
frequency metering equipment'').
    \58\ NERC Comments at 8-9 (responding to NOPR Question 6).
    \59\ Trade Associations Comments at 16.
---------------------------------------------------------------------------

    38. With respect to the NOPR's questions on current practices
regarding backup power supply, BPA and Idaho Power indicate that they
have backup power supply at all of their primary and secondary control
centers.\60\ Trade Associations state that most companies have many
layers of backup to ensure continued control center functionality,
which may include backup power, backup generators and uninterrupted
power supply.\61\ In response to the NOPR's questions about the
definition of ``critical location'' as currently used in Reliability
Standard BAL-005-0.2b, Trade Associations state that the ``other
critical locations'' referenced in current requirement R15 could refer
to frequency metering equipment (including equipment outside the
control center), ancillary computer rooms with energy management
systems (EMS) and EMS backups, and other data systems needed for ACE
calculation.\62\
---------------------------------------------------------------------------

    \60\ BPA Comments at 3; Idaho Power Comments at 3.
    \61\ Trade Associations Comments at 14.
    \62\ Id. at 14.
---------------------------------------------------------------------------

    39. With respect to the benefits and burdens of having backup power
supply at certain locations, Idaho Power acknowledges the benefits of
having backup power supply at primary control centers and other
critical locations (including the benefit of ensuring compliance with
other reliability requirements), and it states that the potential
impact to reliability is no different for reliability coordinators or
transmission operators.\63\ Trade Associations maintain, however, that
there is no need for additional requirements for reliability
coordinators and transmission operators related to backup power supply,
because other Reliability Standards require or encourage certain levels
of reliability and functionality at these locations, as evidenced by
the historical lack of problems with loss of EMS or loss of power
supply at control centers.\64\
---------------------------------------------------------------------------

    \63\ Idaho Power Comments at 2.
    \64\ Trade Associations Comments at 9-11.
---------------------------------------------------------------------------

    40. Appelbaum primarily discusses the importance of backup power
supplies in the context of communications networks. Appelbaum points to
a report issued by the Federal Communications Commission in response to
the June 2012 ``derecho'' event on communications networks and services
in Virginia. The report found that communications were disrupted in
large part during that event because of avoidable planning and system
failures, including the lack of functional backup power, notably in
central offices. Appelbaum contends, based on the derecho event, that
the need to properly plan and design backup power is a critical
component of reliability, and asks that the findings of the derecho
event be considered when the Commission assesses the functional
approach of Reliability Standard EOP-008-1.\65\ Appelbaum points out
that ``there is no specific mention of the performance requirements of
the backup power supply, the required design, or reference to an
Industry Standard'' in Reliability Standard EOP-008-1, which ``creates
a degree of ambiguity that can be exploited to avoid installing a
sufficient level of redundancy in power supplies.'' \66\ Appelbaum
further states the requirement for backup power design and testing
should extend to reliability coordinators, transmission operators, and
balancing authorities.\67\ In sum, Appelbaum's comments stress the
overall need to impose specific requirements, not merely functional
obligations, related to backup power supply for critical systems.
---------------------------------------------------------------------------

    \65\ See Appelbaum Comments at 4.
    \66\ Id.
    \67\ Id. at 5.
---------------------------------------------------------------------------

Response to Data Request
    41. In response to the Commission's March 7 Data Request requesting
information on specific backup supply practices from a sampling of
registered entities, NERC indicated that it collected data from nine
entities, all registered as a balancing authority, reliability
coordinator, transmission operator, or some combination of those
functional categories. NERC indicated that the sample reflected some
diversity as to size and type of entity and, therefore, the information
``should be reflective of current practices throughout the industry.''
\68\
---------------------------------------------------------------------------

    \68\ NERC Response to Data Request at 3.
---------------------------------------------------------------------------

    42. NERC's response indicates that all surveyed entities have
backup power supplies at their primary and backup control centers. A
number of entities responded that these backup supplies were installed
prior to the effective date of NERC's mandatory Reliability Standards,
and that they would not change their practices if the Commission
approved the retirement of Requirement R15 of Reliability Standard BAL-
005-0.2b. NERC reported that the surveyed entities have backup power
supply at a number of other critical locations, which include data
centers, corporate facilities, and operations centers (e.g., those
housing cyber and physical security operations). NERC indicated that
the surveyed entities have two types of backup power supplies at their
control centers: backup generators and uninterruptible power supplies.
According to NERC, each of the surveyed entities reported that it
regularly tests its backup power supplies in accordance with written
procedures, the majority doing monthly run testing. NERC reported that
some entities also perform switchover or transfer testing on a monthly
basis, while others perform such testing at longer intervals.

Commission Determination
    43. We approve the retirement of Reliability Standard BAL-005-0.2b,
including Requirement R15, upon the effective date of Reliability
Standard BAL-005-1. Based on the NOPR comments, we determine not to
direct NERC to develop modifications to the Reliability Standards to
restore the substance of Requirement R15 at this time. We conclude that
the performance obligations of Reliability Standards BAL-005-1 and EOP-
008-1 will ensure the continued operation of AGC and certain data
recording equipment during the loss of normal power supply. Moreover,
based on the responses to the March 7 Data Request, we are satisfied
that backup power supplies at primary and secondary control centers and
other critical locations will likely continue to be used even after the
retirement of Reliability Standard BAL-005-0.2b, Requirement R15.
Should that practice change to the detriment of Bulk-Power System
reliability after the revised Reliability Standards go into effect, the
Commission may revisit this issue.

III. Information Collection Statement

    44. The Paperwork Reduction Act (PRA) \69\ requires each federal
agency to seek and obtain Office of Management and Budget (OMB)
approval before undertaking a collection of information directed to ten
or more persons, or contained in a rule of general applicability. The
OMB regulations require that OMB approve certain reporting and
recordkeeping (collections of information) imposed by an agency.\70\
Upon approval of a collection(s) of information, OMB will assign an OMB
control number and expiration date. Respondents subject to the filing
requirements of this 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.
---------------------------------------------------------------------------

    \69\ 44 U.S.C. 3501-3520.
    \70\ 5 CFR 1320.11.
---------------------------------------------------------------------------

    45. This Final Rule approves revisions to Reliability Standards
BAL-005, associated with FERC-725R, and FAC-001, associated with FERC-
725D. These revisions streamline and clarify the current requirements
related to the calculation of Reporting ACE, a key frequency control
and reliability indicator factor, including consolidating the seventeen
requirements of currently-effective Reliability Standard BAL-005-0.2b,
associated with FERC-725R, into seven requirements in Reliability
Standard BAL-005-1; relocation of certain requirements related to
interconnection requirements for transmission owners and generation
owners into Reliability Standard FAC-001-3; relocation of Requirement
R3 in currently-effective Reliability Standard BAL-006-2 into
Reliability Standard BAL-005-1; and relocation of certain metrics and
calculations required for calculating Reporting ACE into the NERC
definition of Reporting ACE and its component definitions.
    46. The revisions to Reliability Standards BAL-005 and FAC-001 will
not result in an increase in the record-keeping and reporting
requirements imposed on balancing authorities, other than the one-time
cost of administering the change to the revised Reliability Standards.
All other recordkeeping and reporting obligations imposed on balancing
authorities under the modified requirements essentially track those
that already exist under currently-effective Reliability Standards BAL-
005-0.2b and FAC-001-2. The modifications to Reliability Standard FAC-
001-3 will result in a limited increase in the record-keeping and
reporting requirements imposed on those transmission owners and
generator owners that are not also transmission operators and generator
operators (an estimated 161 entities in the United States), as shown in
the chart below.\71\ Many of the modifications to the Reliability
Standards reflected in this Final Rule were developed to help clarify
and streamline existing requirements related to calculation of
Reporting ACE, and they are expected to reduce these entities' overall
burden with respect to recordkeeping, reporting, and compliance.
Moreover, the Final Rule approves the retirement of the majority of the
requirements in Reliability Standard BAL-006-2, further reducing the
overall record-keeping and reporting requirements for balancing
authorities. Accordingly, the Commission estimates that the overall
change in the record-keeping and reporting requirements as a result of
this Final Rule will be de minimis on a per-entity basis.
---------------------------------------------------------------------------

    \71\ Reliability Standard FAC-001-3 replaces and strengthens
currently-effective Reliability Standard FAC-001-2 by moving
currently-effective Requirement R1 of Reliability Standard BAL-005-
0.2b to Reliability Standard FAC-001-3, requiring that transmission
owner and generator owner interconnection requirements include
procedures for confirming that new or materially modified facilities
connecting to the bulk electric system are within a balancing
authority's metered boundaries. NERC explains that these
interconnection requirements should be relocated to Reliability
Standard FAC-001-3, as FAC-001-3 establishes facility
interconnection requirements.
---------------------------------------------------------------------------

    47. Public Reporting Burden: The changes reflected in Reliability
Standard BAL-005-1 are not expected to result in an increase in the
annual record-keeping and reporting requirements on applicable entities
(balancing authorities). However, balancing authorities will have to
perform a one-time review of the modified Reliability Standard to
ensure that their compliance practices (including record-keeping) are
consistent with the revised requirements. The relocation of Requirement
R1 of Reliability Standard BAL-005-0.2b into Reliability Standard FAC-
001-3 will result in an increase in the number of entities subject to
the requirement, as the requirement will be applicable to transmission
owners and generator owners rather than transmission operators and
generator operators. However, this limited increase in annual record-
keeping and reporting burden, along with the one-time burden of
administering the change from Reliability Standard BAL-005-0.2b to BAL-
005-1, is expected to be offset to some extent by the decrease in
record-keeping and reporting burden associated with the retirement of
Reliability Standard BAL-006-2.

----------------------------------------------------------------------------------------------------------------
                                                                                Average     Annual  burden
                                   Number of        Number of      Total  number   burden hours      hours and
       Data collection         respondents \72\   responses per    of  responses   and cost per    total annual
                                                    respondent                     response \73\     cost \74\
FERC-725A, 725D & 725R1        (1).............  (2)............     (1) x (2) =             (4)     (3) x (4) =
(modifications in RM16-13-                                                   (3)                             (5)
 000)
----------------------------------------------------------------------------------------------------------------
BAL-005-1 (FERC-725R1).......  BA..............  1 (one-time)...              99               1              99
                               99..............  ...............  ..............          $64.29       $6,364.71
FAC-001-3 R3 (FERC-725D).....  GO/TO...........  1 (annual).....             161               1             161
                               161 \75\........  ...............  ..............         $102.04      $16,428.44

Retirement of current          BA..............  -1 (annual)....             -99              -1             -99
 standard BAL-006-02 (FERC-    99..............  ...............  ..............         -$37.75      -$3,737.25
 725A).
                                                                 -----------------------------------------------
    Total....................  ................  ...............  ..............  ..............             260
                                                                                $19,055.90
----------------------------------------------------------------------------------------------------------------

    Title: FERC-725A, Mandatory Reliability Standards for the Bulk-
Power System; FERC-725D, Mandatory Reliability Standards: FAC
Reliability Standards; FERC-725R1, Mandatory Reliability Standards: BAL
Reliability Standards

---------------------------------------------------------------------------

    \72\ The estimated number of respondents is based on the NERC
compliance registry as of April 7, 2017. According to the NERC
compliance registry, there are 64 U.S. balancing authorities (BA) in
the Eastern Interconnection, 34 balancing authorities in the Western
Interconnection and one balancing authority in the Electric
Reliability Council of Texas (ERCOT).
    \73\ The burden hours and cost are based on the hourly cost for
an engineer for BAL-005-1, the average of the hourly cost for an
engineer and clerical staff for FAC-001-3, and the hourly cost for
clerical staff for changes associated with the retirement of BAL-
006-2. The estimates for cost per hour are based on 2015 wage
figures and derived as follows:
    $64.29/hour, the average salary plus benefits per engineer (from
Bureau of Labor Statistics at https://www.bls.gov/oes/current/naics2_22.htm);
    $37.75/hour, the average salary plus benefits per information
and record clerks (from Bureau of Labor Statistics at https://www.bls.gov/oes/current/naics2_22.htm).
    \74\ Solely for purposes of determining the overall annual cost
of the record-keeping and reporting changes reflected in this Final
Rule, the one-time cost associated with administering the change to
Reliability Standard BAL-005-1 is being treated as an annual cost.
    \75\ Per the NERC compliance registry, in the United States
there are 54 generator owners (GO) that are not also generator
operators and 107 transmission owners (TO) that are not also
transmission operators, for a total of 161 new entities in the
United States subject to Reliability Standard FAC-001-3, Requirement
R3.
---------------------------------------------------------------------------

    Action: Revision to existing collections.
    OMB Control No: 1902-0244 (FERC-725A); 1902-0247 (FERC-725D); TBD
(FERC-725R1).
    Respondents: Business or other for-profit and not-for-profit
institutions.
    Frequency of Responses: On-going.
    Necessity of the Information: The Commission has reviewed the
requirements of Reliability Standards BAL-005-1 and FAC-001-3 and has
made a determination that the requirements of these Reliability
Standards are necessary to implement section 215 of the FPA.
    Internal Review: The Commission reviewed the revised Reliability
Standards and made a determination that its action is necessary to
implement section 215 of the FPA. 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.
    48. Interested persons may obtain information on the reporting
requirements by contacting the following: Federal Energy Regulatory
Commission, 888 First Street NE., Washington, DC 20426 [Attention:
Ellen Brown, Office of the Executive Director, e-mail:
<EMAIL_ADDRESS>phone:<PHONE_NUMBER>, fax:<PHONE_NUMBER>].
    49. For submitting comments concerning the collection(s) of
information and the associated burden estimate(s), please send your
comments to the Commission and to the Office of Management and Budget,
Office of Information and Regulatory Affairs, Washington, DC 20503
[Attention: Desk Officer for the Federal Energy Regulatory Commission,
phone:<PHONE_NUMBER>, fax:<PHONE_NUMBER>]. For security reasons,
comments to OMB should be submitted by e-mail to:
<EMAIL_ADDRESS>Comments submitted to OMB should include
FERC-725A, FERC-725D, and FERC-725R1 and Docket Number RM16-13-000.

IV. Environmental Analysis

    50. 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.\76\ 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.\77\ The actions taken here
fall within this categorical exclusion in the Commission's regulations.
---------------------------------------------------------------------------

    \76\ Regulations Implementing the National Environmental Policy
Act of 1969, Order No. 486, FERC Stats. & Regs., Regulations
Preambles 1986-1990 ] 30,783 (1987).
    \77\ 18 CFR 380.4(a)(2)(ii).
---------------------------------------------------------------------------

V. Regulatory Flexibility Act Certification

    51. The Regulatory Flexibility Act of 1980 (RFA) \78\ generally
requires a description and analysis of proposed rules that will have
significant economic impact on a substantial number of small entities.
The RFA does not mandate any particular outcome in a rulemaking. It
only requires consideration of alternatives that are less burdensome to
small entities and an agency explanation of why alternatives were
rejected. The Small Business Administration (SBA) revised its size
standard effective January 22, 2014 for electric utilities from a
standard based on megawatt hours to a standard based on the number of
employees, including affiliates. Under SBA's size standards, some
balancing authorities, generation owners, and transmission owners will
fall under the following category and associated size threshold:
Electric bulk power transmission and control, at 500 employees.\79\
---------------------------------------------------------------------------

    \78\ 5 U.S.C. 601-612.
    \79\ 13 CFR 121.201, Sector 22 (Utilities), NAICS code 221121
(Electric Bulk Power Transmission and Control).
---------------------------------------------------------------------------

    52. As stated in the NOPR, the Commission estimates a very limited,
one-time increase in recordkeeping and reporting burden on balancing
authorities due to the changes in the revised Reliability Standards,
with no other increase in the cost of compliance. Approximately 24 of
the 99 balancing authorities are expected to meet the SBA's definition
for a small entity. In addition, approximately 161 entities will be
subject annually to new record-keeping and reporting requirements under
revised Reliability Standard FAC-001-3, with no other increase in the
cost of compliance.

    53. Even assuming that the one-time cost of compliance for
administering the change from Reliability Standard BAL-005-0.2b to BAL-
005-1 is an annual cost, and assuming that all of the entities affected
by the revisions to both BAL-005 and FAC-001 qualify as small entities,
the estimated total annual cost to the industry as a whole is minimal
($19,055.90), and the average cost per affected entity is $118.36.
    54. According to SBA guidance, the determination of significance of
impact ``should be seen as relative to the size of the business, the
size of the competitor's business, and the impact the regulation has on
larger competitors.'' \80\ The Commission does not consider the
estimated burden to be a significant economic impact. As a result, the
Commission certifies that the revised Reliability Standards will not
have a significant economic impact on a substantial number of small
entities.
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    \80\ U.S. Small Business Administration, A Guide for Government
Agencies How to Comply with the Regulatory Flexibility Act, at 18
(May 2012), https://www.sba.gov/sites/default/files/advocacy/rfaguide_0512_0.pdf.
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VI. Document Availability

    55. 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.
    56. 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 of this document, excluding the last three digits, in
the docket number field.
    57. User assistance is available for eLibrary and the Commission's
Web site during normal business hours from the Commission's Online
Support at<PHONE_NUMBER> (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>. Email the Public Reference Room at
<EMAIL_ADDRESS>
VII. Effective Date and Congressional Notification

    These regulations are effective November 27, 2017. 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.

    By the Commission.

    Issued: September 20, 2017
Nathaniel J. Davis, Sr.,
Deputy Secretary.

Appendix

List of Commenters

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              Abbreviation                          Commenter
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NERC...................................  North American Electric
                                          Reliability Corporation.
Trade Associations.....................  Edison Electric Institute,
                                          American Public Power
                                          Association, and Large Public
                                          Power Council.
BPA....................................  Bonneville Power
                                          Administration.
Idaho Power............................  Idaho Power Company.
Appelbaum..............................  Jonathan Appelbaum.
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[FR Doc. 2017-20554 Filed 9-25-17; 8:45 am]
 BILLING CODE 6717-01-P