[Federal Register Volume 79, Number 182 (Friday, September 19, 2014)]
[Notices]
[Pages 56409-56411]
[FR Doc No: 2014-22339]

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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. IC-31250; File No. 812-14293]

Evanston Alternative Opportunities Fund and Evanston Capital
Management, LLC; Notice of Application

September 15, 2014.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of an application under Section 6(c) of the Investment
Company Act of 1940 (the ``Act'') for an exemption from Sections 18(c)
and 18(i) of the Act, and for an order pursuant to Section 17(d) of the
Act and Rule 17d-1 under the Act.

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SUMMARY OF APPLICATION: Applicants request an order to permit certain
registered closed-end management investment companies to issue multiple
classes of shares, units or interests (``Shares'') with varying sales
loads and asset-based service and/or asset-based distribution fees.

APPLICANTS: Evanston Alternative Opportunities Fund (``Fund'') and
Evanston Capital Management, LLC (``Adviser'').

DATES: Filing Dates: The application was filed on March 31, 2014, and
amended on July 16, 2014 and on August 7, 2014.

HEARING OR NOTIFICATION OF HEARING: An order granting the requested
relief will be issued unless the Commission orders a hearing.
Interested persons may request a hearing by writing to the Commission's
Secretary and serving applicants with a copy of the request, personally
or by mail. Hearing requests should be received by the Commission by
5:30 p.m. on October 10, 2014 and should be accompanied by proof of
service on the applicants, in the form of an affidavit, or, for
lawyers, a certificate of service. Pursuant to Rule 0-5 under the Act,
hearing requests should state the nature of the writer's interest, any
facts bearing upon the desirability of a hearing on the matter, the
reason for the request, and the issues contested. Persons who wish to
be notified of a hearing may request notification by writing to the
Commission's Secretary.

ADDRESSES: Secretary, U.S. Securities and Exchange Commission, 100 F
Street NE., Washington, DC 20549-1090; Applicants: Evanston Alternative
Opportunities Fund and Evanston Capital Management, LLC, 1560 Sherman
Avenue, Suite 960, Evanston, IL 60201.

FOR FURTHER INFORMATION CONTACT: Rochelle Kauffman Plesset, Senior
Counsel, at<PHONE_NUMBER>, or Nadya Roytblat, Assistant Chief Counsel
at<PHONE_NUMBER> (Division of Investment Management, Chief Counsel's
Office).

SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained via the
Commission's Web site by searching for the file number, or for an
applicant using the Company name box, at http://www.sec.gov/search/search.htm or by calling<PHONE_NUMBER>.

Applicants' Representations

    1. The Fund is a Delaware statutory trust that is registered under
the Act as a non-diversified, closed-end management investment company.
The Fund's primary investment objective is to seek attractive long-term
risk adjusted returns. The Fund is a ``fund of funds'' and seeks to
achieve its objective by investing substantially all of its assets in
investment vehicles, often referred to as ``hedge funds,'' that are
managed by independent investment managers.
    2. The Adviser is a Delaware limited liability company and is
registered as an investment adviser under the Investment Advisers Act
of 1940. The

Adviser serves as investment adviser to the Fund.
    3. The Fund currently issues a single class of Shares (``Initial
Class''). The Shares are continuously offered and are registered under
the Securities Act of 1933. Shares of the Fund are not listed on any
securities exchange, nor quoted on any quotation medium. The Shares are
not offered or traded on a secondary market. In order to provide a
limited degree of liquidity, the Fund may from time to time offer to
repurchase Shares at their then-current net asset value pursuant to
Rule 13e-4 under the Securities Exchange Act of 1934 (``Exchange
Act''). Repurchases will be made at such times, in such amounts and on
such terms as may be determined by the Fund's board of directors
(``Board'') in its sole discretion. The Adviser expects to recommend
ordinarily that the Board authorize the Fund to offer to repurchase
Shares from shareholders quarterly.
    4. The Fund's Initial Class is subject to a sales load, but is not
subject to any service or distribution fee. Shareholders of the Initial
Class are subject to a repurchase fee if the interval between the date
of purchase of the Shares and the valuation date with respect to the
repurchase of Shares is less than one year.
    5. The Applicants seek an order to permit the Fund to issue
multiple classes of Shares, with varying sales loads and asset-based
service and/or asset-based distribution fees. Applicants request that
the order also apply to any other continuously-offered registered
closed-end management investment company existing now or in the future
for which the Adviser or any entity controlling, controlled by, or
under common control with the Adviser, acts as investment adviser, and
which provides periodic liquidity to its Shares pursuant to Rule 13e-4
under the Exchange Act (together with the Fund, the ``Funds'').\1\
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    \1\ Any Fund relying on this relief in the future will do so in
a manner consistent with the terms and conditions of the
application. Applicants represent that each entity presently
intending to rely on the requested relief is listed in the
application as an Applicant.
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    6. If the requested relief is granted, the Fund intends to offer
multiple classes of Shares of the Fund. Each class would be offered at
net asset value. Because of different class expenses, the net income
attributable to, and any dividends payable on, each class of Shares may
differ from each other from time to time. As a result, the net asset
value per Share of the classes may differ over time.
    7. Applicants represent that each new class of Shares may charge a
front-end sales load and an annual asset-based service and/or
distribution fee. Applicants further represent that any distribution
fee would be paid pursuant to a plan of distribution adopted by the
Fund in compliance with the provisions of Rules 12b-1 and 17d-3 under
the Act as if those rules applied to closed-end management investment
companies. In addition, any asset-based service fee and distribution
fee for each class of Shares will comply with the provisions of NASD
Rule 2830 (``NASD Sales Charge Rule'').\2\ Any repurchase fee will
apply equally to all shareholders of the Fund, regardless of the class,
consistent with Section 18 of the Act and Rule 18f-3 under the Act.
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    \2\ Any reference to the NASD Sales Charge Rule includes any
successor or replacement rule that may be adopted by the Financial
Industry Regulatory Authority (``FINRA'').
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    8. Applicants state that the Fund does not currently intend to
impose a contingent deferred sales load (``CDSC''). In the event that
the Fund does impose a CDSC, however, Applicants represent that it
would only do so in compliance with Rule 6c-10 under the Act as if the
rule applied to closed-end management investment companies. With
respect to any waiver of, scheduled variation in, or elimination of the
CDSC, the Fund will comply with Rule 22d-1 under the Act as if the Fund
were an open-end investment company and will be applied uniformly to
all shareholders of the Fund.
    9. Applicants represent that all expenses incurred by the Fund will
be allocated among the various classes of Shares based on the net
assets of the Fund attributable to each class, except that the net
asset value and expenses of each class will reflect distribution fees,
service fees, and any other expenses of that class. Expenses of the
Fund allocated to a particular class of Shares will be borne on a pro
rata basis by each outstanding Share of that class. Applicants state
that each Fund will comply with the provisions of Rule 18f-3 under the
Act as if it were an open-end investment company.
    10. Applicants state that, from time to time, the Fund may create
and offer additional classes of Shares, the terms of which may differ,
including in the following respects: (i) The amount of fees permitted
by different distribution plans and/or different service fee
arrangements; (ii) voting rights with respect to a distribution plan
and/or service plan of a class; (iii) different class designations;
(iv) the impact of any class expenses directly attributable to a
particular class of Shares allocated on a class basis as described in
this application; (v) any differences in dividends and net asset values
per Share resulting from differences in fees under a distribution plan
and/or service plan or in class expenses; (vi) any sales load
structure; and (vii) any conversion features as permitted under the
Act.
    11. Applicants state that any repurchase offers made by the Fund
will be made to all classes of Shares at the same time, in the same
proportional amounts and on the same terms, except for differences in
net asset values per Share resulting from differences in fees under a
distribution plan and/or service plan or in class expenses.
    12. Applicants represent that the Fund will disclose in its
prospectus the fees, expenses and other characteristics of each class
of Shares offered for sale by the prospectus, as is required for open-
end multiple class investment companies under Form N-1A. As is required
for open-end management investment companies, the Fund will disclose
its expenses in shareholder reports, and disclose any arrangements that
result in breakpoints in, or elimination of, sales loads in its
prospectus.\3\ In addition, Applicants will comply with applicable
enhanced fee disclosure requirements for fund of funds, including
registered funds of hedge funds.\4\
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    \3\ See Shareholder Reports and Quarterly Portfolio Disclosure
of Registered Management Investment Companies, Investment Company
Act Release No. 26372 (Feb. 27, 2004) (adopting release); Disclosure
of Breakpoint Discounts by Mutual Funds, Investment Company Act
Release No. 26464 (June 7, 2004) (adopting release).
    \4\ Fund of Funds Investments, Investment Company Act Rel. No.
27399 (Jun. 20, 2006) (adopting release). See also Rules 12d1-1, et
seq. of the Act.
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    13. The Fund will comply with any requirements that the Commission
or FINRA may adopt regarding disclosure at the point of sale and in
transaction confirmations about the costs and conflicts of interest
arising out of the distribution of open-end investment company shares,
and regarding prospectus disclosure of sales loads and revenue sharing
arrangements as if those requirements applied to the Fund. In addition,
each Fund will contractually require that any distributor of the Fund's
Shares comply with such requirements in connection with the
distribution of such Shares.

Applicants' Legal Analysis

Multiple Classes of Shares

    1. Section 18(c) of the Act provides, in relevant part, that a
closed-end

investment company may not issue or sell any senior security if,
immediately thereafter, the company has outstanding more than one class
of senior security. Applicants state that the creation of multiple
classes of shares of the Fund may be prohibited by Section 18(c), as a
class may have priority over another class as to payment of dividends
because shareholders of different classes would pay different fees and
expenses.
    2. Section 18(i) of the Act provides that each share of stock
issued by a registered management investment company will be a voting
stock and have equal voting rights with every other outstanding voting
stock. Applicants state that multiple classes of Fund Shares may
violate Section 18(i) of the Act because each class would be entitled
to exclusive voting rights with respect to matters solely related to
that class.
    3. Section 6(c) of the Act provides that the Commission may exempt
any person, security or transaction or any class or classes of persons,
securities or transactions from any provision of the Act, or from any
rule thereunder, if and to the extent such exemption is necessary or
appropriate in the public interest and consistent with the protection
of investors and the purposes fairly intended by the policy and
provisions of the Act. Applicants request an exemption under Section
6(c) from Sections 18(c) and 18(i) to permit the Fund to issue multiple
classes of shares.
    4. Applicants submit that the proposed allocation of expenses and
voting rights among multiple classes is equitable and will not
discriminate against any group or class of shareholders. Applicants
submit that the proposed arrangements would permit a Fund to facilitate
the distribution of its shares and provide investors with a broader
choice of shareholder services. Applicants assert that the proposed
closed-end investment company multiple class structure does not raise
the concerns underlying Section 18 of the Act to any greater degree
than open-end investment companies' multiple class structures that are
permitted by Rule 18f-3 under the Act. Applicants state that each Fund
will comply with the provisions of Rule 18f-3 as if it were an open-end
investment company.

CDSCs

    1. Applicants believe that the requested relief meets the standards
of Section 6(c) of the Act. Rule 6c-10 under the Act permits open-end
investment companies to impose CDSCs, subject to certain conditions.
Applicants state that any CDSC imposed by the Fund will comply with
Rule 6c-10 under the Act as if the rule were applicable to closed-end
investment companies. The Fund also will disclose CDSCs in accordance
with the requirements of Form N-1A concerning CDSCs as if the Fund were
an open-end investment company. Applicants further state that the Fund
will apply the CDSC (and any waivers or scheduled variations of the
CDSC) uniformly to all shareholders in a given class and consistently
with the requirements of Rule 22d-1 under the Act.

Asset-Based Service and/or Distribution Fees

    1. Section 17(d) of the Act and Rule 17d-1 under the Act prohibit
an affiliated person of a registered investment company or an
affiliated person of such person, acting as principal, from
participating in or effecting any transaction in connection with any
joint enterprise or joint arrangement in which the investment company
participates unless the Commission issues an order permitting the
transaction. In reviewing applications submitted under Section 17(d)
and Rule 17d-1, the Commission considers whether the participation of
the investment company in a joint enterprise or joint arrangement is
consistent with the provisions, policies and purposes of the Act, and
the extent to which the participation is on a basis different from or
less advantageous than that of other participants.
    2. Rule 17d-3 under the Act provides an exemption from Section
17(d) and Rule 17d-1 to permit open-end investment companies to enter
into distribution arrangements pursuant to Rule 12b-1 under the Act.
Applicants request an order under Section 17(d) and Rule 17d-1 under
the Act to the extent necessary to permit the Fund to impose asset-
based service and/or distribution fees. Applicants have agreed to
comply with Rules 12b-1 and 17d-3 as if those rules applied to closed-
end investment companies.

Applicants' Condition

    Applicants agree that any order granting the requested relief will
be subject to the following condition:
    Each Fund relying on the order will comply with the provisions of
Rules 6c-10, 12b-1, 17d-3, 18f-3 and 22d-1 under the Act, as amended
from time to time, as if those rules applied to closed-end management
investment companies, and will comply with the NASD Sales Charge Rule,
as amended from time to time, as if that rule applied to all closed-end
management investment companies.

    For the Commission, by the Division of Investment Management,
under delegated authority.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-22339 Filed 9-18-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 88, Number 79 (Tuesday, April 25, 2023)]
[Rules and Regulations]
[Pages 24918-24921]
[FR Doc No: 2023-08438]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R06-OAR-2021-0214; FRL-9407-02-R6]

Air Plan Approval; Oklahoma; Revisions to Air Pollution Control
Rules

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: Pursuant to the Federal Clean Air Act (CAA or the Act), the
Environmental Protection Agency (EPA) is approving revisions to the
State Implementation Plan (SIP) for Oklahoma, submitted to the EPA by
the State of Oklahoma designee (``the State'') on February 9, 2021. The
SIP revisions being approved address Open Burning, Control of Emission
of Volatile Organic Compounds (VOC), and Specialty Coatings VOC Content
Limits.

DATES: This rule is effective on May 25, 2023.

ADDRESSES: The EPA has established a docket for this action under
Docket ID EPA-R06-OAR-2021-0214. All documents in the docket are listed
on the https://www.regulations.gov website. Although listed in the
index, some information is not publicly available, e.g., Confidential
Business Information or other information whose disclosure is
restricted by statute. Certain other material, such as copyrighted
material, is not placed on the internet. Publicly available docket
materials are available electronically through https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: For information on the revisions
addressing open burning, please contact Ms. Carrie Paige, Region 6
Office, Infrastructure and Ozone Section,<PHONE_NUMBER>,
[email protected]. For information on the revisions addressing
emissions of VOC, please contact Mr. Emad Shahin, EPA Region 6 Office,
Infrastructure and Ozone Section,<PHONE_NUMBER>, [email protected].
Out of an abundance of caution for members of the public and staff, the
EPA Region 6 office may be closed to the public to reduce the risk of
transmitting COVID-19. The EPA encourages the public to submit comments
via https://www.regulations.gov. Please call or email the contact
listed above if you need alternative access to material indexed but not
provided in the docket.

SUPPLEMENTARY INFORMATION: Throughout this document ``we,'' ``us,'' and
``our'' means the EPA.

I. Background

    The background for this action is discussed in detail in our
February 3, 2023, proposal (88 FR 7384).\1\ In that document, we
proposed to approve a portion of the revisions to the Oklahoma SIP
submitted on February 9, 2021. Our February 2023 proposal addressed
only the portion of the submittal that referred to the Oklahoma
Administrative Code (OAC) Title 252, Chapter 100 (denoted OAC 252:100),
Subchapters 13, 37, and 39, and Appendix N. The remainder of the
submitted revisions were addressed in a separate rulemaking action.\2\
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    \1\ Henceforth referred to as our ``February 2023'' proposal.
Our February 2023 proposal includes technical support documents,
which are posted in the docket for this action.
    \2\ See 87 FR 50263 (August 16, 2022).
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    The revisions to Subchapter 13, which addresses Open Burning
(denoted 252:100-13), include but are not limited to, requiring
inspection and removal of materials containing asbestos, asphalt, and
lead in structures prior to fire training; requiring use of air curtain
incinerators (ACIs) in specified areas; and add a provision for open
burning of certain medical marijuana plant refuse.
    The revisions to Subchapter 37 (252:100-37), which addresses
Control of Emission of Volatile Organic Compounds (VOC), add a new
section to control VOC emissions from aerospace industries coatings
operations, for new and existing aerospace vehicle and component
coating operations. The revisions to Subchapter 39 (252:100-39), which
address Emission of Volatile Organic Compounds (VOCs) in Nonattainment
Areas and Former Nonattainment Areas, include but are not limited to
incorporating the Aerospace national emission standards for hazardous
air pollutants (NESHAP) (40 CFR part 63, subpart GG). The revisions
also added Appendix N (Specialty Coatings VOC Content Limits) to the
SIP.
    The revisions addressed in our February 2023 proposal add clarity,
consistency, and stringency to the Oklahoma SIP. The revisions do not
relax the current SIP rules and are consistent with Federal regulations
at 40 CFR parts 60 and 61 and 40 CFR part 63, subparts GG and WWWW.
Therefore, and consistent with CAA section 110(l), we do not expect
these revisions to interfere with any applicable requirement concerning
attainment and reasonable further progress or any other applicable
requirement of the Act. More detail on these revisions is provided in
the docket for this action.
    Our February 2023 proposal provided a detailed description of the
revisions and the rationale for the EPA's proposed actions, together
with a discussion of the opportunity to comment. The public comment
period for our February 2023 proposal closed on March 6, 2023. We
received one supporting comment from an anonymous source. No adverse
comment was received. Therefore, we are finalizing this action as
proposed.

II. Final Action

    We are approving portions of a SIP revision submitted to the EPA by
the State of Oklahoma on February 9, 2021. Specifically, we are
approving the revisions to OAC 252:100, Subchapters 13 (Open Burning),
37 (Control of Emission of Volatile Organic Compounds (VOCs)), 39
(Emission of Volatile Organic Compounds (VOCs) in Nonattainment Areas
and Former

Nonattainment Areas), and Appendix N (Specialty Coatings VOC Content
Limits). We are approving these revisions in accordance with section
110 of the Act.

III. Environmental Justice Considerations

    As stated in our February 2023 proposal and posted in the docket
for this action, EPA reviewed demographic data, which provides an
assessment of individual demographic groups of the populations living
within the state of Oklahoma. EPA then compared the data to the
national average for each of the demographic groups. The results of
this analysis are being provided for informational and transparency
purposes. The results of the demographic analysis indicate that, for
populations within the state of Oklahoma, the percent people of color
(persons who reported their race as a category other than White alone
(not Hispanic or Latino)) is less than the national average (38.5
percent versus 43.1 percent). Within people of color, the percent of
the population that is Black or African American alone is less than the
national average (7.8 percent versus 13.6 percent) and the percent of
the population that is American Indian/Alaska Native is greater than
the national average (9.7 percent versus 1.3 percent). The percent of
the population that is two or more races is greater than the national
average (6.6 percent versus 2.9 percent). The percent of people living
in poverty in Oklahoma is greater than the national average (15.6
percent versus 11.6 percent).
    The Oklahoma Department of Environmental Quality (ODEQ) did not
evaluate environmental justice considerations as part of their SIP
submittal; the CAA and applicable implementing regulations neither
prohibit nor require such an evaluation. EPA performed an environmental
justice analysis, as is described above. The analysis was done for the
purpose of providing additional context and information about this
rulemaking to the public, not as a basis of the action.
    This final action approves new rules into the Oklahoma SIP that are
anticipated to control emissions from open burning and certain
activities whose emissions include VOC. Open burning may emit particle
pollution and VOC is a precursor to ozone formation. Information on
particle pollution and ozone, and the associated negative health
impacts of these pollutants can be found at https://www.epa.gov/pm-pollution and https://www.epa.gov/ground-level-ozone-pollution.\3\ We
expect that this action and the resulting emissions reductions will
generally be neutral or contribute to reduced environmental and health
impacts on all populations in Oklahoma, including indigenous people,
people of color, and low-income populations. There is no information in
the record indicating that this action is expected to have
disproportionately high or adverse human health or environmental
effects on a particular group of people. EPA offered consultation on
our proposed rulemaking to tribal governments that may be affected by
this action.\4\ We received one request for tribal consultation from
the Muscogee Nation and provided such on February 14, 2023.
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    \3\ See, also, 78 FR 3086 (January 15, 2013) and 80 FR 65292
(October 26, 2015).
    \4\ See invitation for consultation, dated February 1, 2023, in
the docket for this action.
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IV. Incorporation by Reference

    In this rule, the EPA is finalizing regulatory text that includes
incorporation by reference. In accordance with requirements of 1 CFR
51.5, the EPA is finalizing the incorporation by reference the
revisions to the Oklahoma regulations, as identified in Section II of
this preamble, Final Action. The revised regulations address open
burning, VOC emissions, and specialty coatings VOC content limits. The
EPA has made, and will continue to make, these materials generally
available through www.regulations.gov (please contact the person
identified in the FOR FURTHER INFORMATION CONTACT section of this
preamble for more information). Therefore, these materials have been
approved by EPA for inclusion in the SIP, have been incorporated by
reference by EPA into that plan, are fully federally enforceable under
CAA sections 110 and 113 as of the effective date of the final
rulemaking of EPA's approval, and will be incorporated by reference in
the next update to the SIP compilation.

V. Statutory and Executive Order Reviews

    Under the Clean Air Act, the Administrator is required to approve a
SIP submission that complies with the provisions of the Act and
applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a).
Thus, in reviewing SIP submissions, the EPA's role is to approve state
choices, provided that they meet the criteria of the Clean Air Act.
Accordingly, this action merely approves state law as meeting Federal
requirements and does not impose additional requirements beyond those
imposed by state law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Orders
12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21,
2011);
     Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or
uniquely affect small governments, described in the Unfunded Mandates
Reform Act of 1995 (Pub. L. 104-4);
     Does not have federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the CAA; and
     Does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, the SIP is not approved to apply on any Indian
reservation land or in any other area where EPA or an Indian tribe has
demonstrated that a tribe has jurisdiction. In those areas of Indian
country, the rule does not have tribal implications and will not impose
substantial direct costs on tribal governments or preempt tribal law as
specified by Executive Order 13175 (65 FR 67249, November 9, 2000).
Consistent with the EPA Policy on Consultation and Coordination with
Indian Tribes (May 4, 2011), the EPA offered consultation (by letter
dated February 1, 2023) on our proposed rulemaking to tribal
governments that may be affected by this action. We received a request
for formal tribal consultation from the Muscogee Nation

and provided consultation on February 14, 2023.
    Executive Order 12898 (Federal Actions to Address Environmental
Justice in Minority Populations and Low-Income Populations, 59 FR 7629,
Feb. 16, 1994) directs Federal agencies to identify and address
``disproportionately high and adverse human health or environmental
effects'' of their actions on minority populations and low-income
populations to the greatest extent practicable and permitted by law.
EPA defines environmental justice (EJ) as ``the fair treatment and
meaningful involvement of all people regardless of race, color,
national origin, or income with respect to the development,
implementation, and enforcement of environmental laws, regulations, and
policies.'' EPA further defines the term fair treatment to mean that
``no group of people should bear a disproportionate burden of
environmental harms and risks, including those resulting from the
negative environmental consequences of industrial, governmental, and
commercial operations or programs and policies.''
    The Oklahoma Department of Environmental Quality did not evaluate
EJ considerations as part of its SIP submittal; the CAA and applicable
implementing regulations neither prohibit nor require such an
evaluation. EPA performed an EJ analysis, as is described earlier in
the section titled ``Environmental Justice Considerations.'' The
analysis was done for the purpose of providing additional context and
information about this rulemaking to the public, not as a basis of the
action. Due to the nature of the action being taken here, this action
is expected to have a neutral to positive impact on the air quality of
the affected area. In addition, there is no information in the record
upon which this decision is based inconsistent with the stated goal of
E.O. 12898 of achieving EJ for people of color, low-income populations,
and Indigenous peoples.
    This action is subject to the Congressional Review Act, and EPA
will submit a rule report to each House of the Congress and to the
Comptroller General of the United States. This action is not a ``major
rule'' as defined by 5 U.S.C. 804(2).
    Under section 307(b)(1) of the Clean Air Act, petitions for
judicial review of this action must be filed in the United States Court
of Appeals for the appropriate circuit by June 26, 2023. Filing a
petition for reconsideration by the Administrator of this final rule
does not affect the finality of this action for the purposes of
judicial review nor does it extend the time within which a petition for
judicial review may be filed and shall not postpone the effectiveness
of such rule or action. This action may not be challenged later in
proceedings to enforce its requirements. (See section 307(b)(2).)

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by
reference, Ozone, Volatile organic compounds.

    Dated: April 17, 2023.
Earthea Nance,
Regional Administrator, Region 6.

    For the reasons stated in the preamble, the Environmental
Protection Agency amends 40 CFR part 52 as follows:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

0
1. The authority citation for part 52 continues to read as follows:

    Authority:  42 U.S.C. 7401 et seq.

Subpart LL--Oklahoma

0
2. In Sec.  52.1920, the table in paragraph (c) titled ``EPA Approved
Oklahoma
    Regulations'' is amended by:
0
a. Under Subchapter 13:
0
i. Revising the entries for 252:100-13-2, 252:100-13-5, 252:100-13-7,
252:100-13-8;
0
ii. Adding an entry for 252:100-13-8.1 in numerical order; and
0
iii. Revising the entry for 252:100-13-9;
0
b. Revising the heading for Subchapter 37 and adding an entry for
252:100-37-27 in numerical order under Subchapter 37;
0
c. Revising the heading for Subchapter 39 and the entry for 252:100-39-
47 and removing the entry for 252:100-39-49 under Subchapter 39; and
0
d. Adding in alphanumerical order an entry for 252:100, Appendix N
under Appendices for OAC 252: Chapter 100.
    The revisions and additions read as follows:

Sec.  52.1920  Identification of plan.

* * * * *
    (c) * * *

                                        EPA Approved Oklahoma Regulations
----------------------------------------------------------------------------------------------------------------
                                                             State
         State citation               Title/subject        effective   EPA approval date        Explanation
                                                              date
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                Chapter 100 (OAC 252:100). Air Pollution Control
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                           Subchapter 13. Open Burning
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
252:100-13-2...................  Definitions............    9/15/2020  4/25/2023 [Insert
                                                                        Federal Register
                                                                        citation].
252:100-13-5...................  Open burning prohibited    9/15/2020  4/25/2023 [Insert
                                                                        Federal Register
                                                                        citation].
252:100-13-7...................  Allowed open burning...    9/15/2020  4/25/2023 [Insert
                                                                        Federal Register
                                                                        citation].
252:100-13-8...................  Use of air curtain         9/15/2020  4/25/2023 [Insert
                                  incinerators.                         Federal Register
                                                                        citation].

252:100-13-8.1.................  Transported material...    9/15/2020  4/25/2023 [Insert
                                                                        Federal Register
                                                                        citation].
252:100-13-9...................  General conditions and     9/15/2020  4/25/2023........
                                  requirements for                     [Insert Federal
                                  allowed open burning.                 Register
                                                                        citation].

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                     Subchapter 37. Control of Emission of Volatile Organic Compounds (VOC)
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                  Part 5. Control of VOCs in Coating Operations
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
252:100-37-27..................  Control of emission of     9/15/2020  4/25/2023 [Insert
                                  VOCs from aerospace                   Federal Register
                                  industries coatings                   citation].
                                  operations.

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
  Subchapter 39. Emission of Volatile Organic Compounds (VOCs) in Nonattainment Areas and Former Nonattainment
                                                      Areas
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                           Part 7. Specific Operations
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
252:100-39-47..................  Control of VOC             9/15/2020  4/25/2023 [Insert
                                  emissions from                        Federal Register
                                  aerospace industries                  citation].
                                  coatings operations.

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                       Appendices for OAC 252: Chapter 100
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
252:100, Appendix N............  Specialty Coatings VOC     9/15/2020  4/25/2023 [Insert
                                  Content Limits.                       Federal Register
                                                                        citation].

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * *
[FR Doc. 2023-08438 Filed 4-24-23; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 80, Number 77 (Wednesday, April 22, 2015)]
[Proposed Rules]
[Pages 22444-22449]
[FR Doc No: 2015-09228]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 40

[Docket No. RM15-9-000]

Protection System, Automatic Reclosing, and Sudden Pressure
Relaying Maintenance Reliability Standard

AGENCY: Federal Energy Regulatory Commission, Department of Energy.

ACTION: Notice of proposed rulemaking.

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

SUMMARY: Pursuant to the Federal Power Act, the Commission proposes to
approve a revised Reliability Standard,

PRC-005-4 (Protection System, Automatic Reclosing and Sudden Pressure
Relaying Maintenance), developed and submitted by the North American
Electric Reliability Corporation (NERC). In addition, the Commission
proposes to approve one new definition and four revised definitions
referenced in the proposed Reliability Standard, as well as NERC's
proposed violation risk factors, violation severity levels, and
implementation plan. Consistent with Order No. 758, the proposed
Reliability Standard requires applicable entities to test and maintain
certain sudden pressure relays as part of a protection system
maintenance program.

DATES: Comments are due June 22, 2015.

ADDRESSES: Comments, identified by docket number, may be filed in the
following ways:
     Electronic Filing through http://www.ferc.gov. Documents
created electronically using word processing software should be filed
in native applications or print-to-PDF format and not in a scanned
format.
     Mail/Hand Delivery: Those unable to file electronically
may mail or hand-deliver comments to: Federal Energy Regulatory
Commission, Secretary of the Commission, 888 First Street NE.,
Washington, DC 20426.
    Instructions: For detailed instructions on submitting comments and
additional information on the rulemaking process, see the Comment
Procedures Section of this document.

FOR FURTHER INFORMATION CONTACT:
Tom Bradish (Technical Information), Office of Electric Reliability,
Federal Energy Regulatory Commission, 888 First Street NE., Washington,
DC 20426,<PHONE_NUMBER><EMAIL_ADDRESS>
Julie Greenisen (Legal Information), Office of the General Counsel,
Federal Energy Regulatory Commission, 888 First Street NE., Washington,
DC 20426,<PHONE_NUMBER><EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:
    1. Pursuant to section 215 of the Federal Power Act (FPA),\1\ the
Commission proposes to approve a revised Reliability Standard, PRC-005-
4 (Protection System, Automatic Reclosing and Sudden Pressure Relaying
Maintenance), developed and submitted by the North American Electric
Reliability Corporation (NERC), the Commission-certified Electric
Reliability Organization (ERO). In addition, the Commission proposes to
approve one new definition and four revised definitions referenced in
the proposed Reliability Standard, as well as NERC's proposed violation
risk factors, violation severity levels, and implementation plan.
Consistent with Order No. 758,\2\ the proposed Reliability Standard
requires applicable entities to test and maintain certain sudden
pressure relays as part of a protection system maintenance program.

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

    \1\ 16 U.S.C. 824o (2012).
    \2\ Interpretation of Protection System Reliability Standard,
Order No. 758, 138 FERC ] 61,094, clarification denied, 139 FERC ]
61,227 (2012).
---------------------------------------------------------------------------

I. Background

A. Regulatory Background

    2. Section 215 of the FPA requires a Commission-certified ERO to
develop mandatory and enforceable Reliability Standards, subject to
Commission review and approval.\3\ Once approved, the Reliability
Standards may be enforced by the ERO subject to Commission oversight,
or by the Commission independently.\4\ In 2006, the Commission
certified NERC as the ERO pursuant to FPA section 215.\5\
---------------------------------------------------------------------------

    \3\ 16 U.S.C. at 824o(c) and (d).
    \4\ See id. at 824o(e).
    \5\ North American Electric Reliability Corp., 116 FERC ]
61,062, order on reh'g & compliance, 117 FERC ] 61,126 (2006), aff'd
sub nom. Alcoa, Inc. v. FERC, 564 F.3d 1342 (D.C. Cir. 2009).
---------------------------------------------------------------------------

    3. In 2007, the Commission approved an initial set of Reliability
Standards submitted by NERC, including initial versions of four
protection system and load-shedding-related maintenance standards: PRC-
005-1, PRC-008-0, PRC-011-0, and PRC-017-0.\6\ In addition, the
Commission directed NERC to develop a revision to PRC-005-1
incorporating a maximum time interval during which to conduct
maintenance and testing of protection systems, and to consider
combining into one standard the various maintenance and testing
requirements for all of the maintenance and testing-related standards
for protection systems, underfrequency load shedding (UFLS) equipment
and undervoltage load shedding (UVLS) equipment.
---------------------------------------------------------------------------

    \6\ Mandatory Reliability Standards for the Bulk Power System,
Order No. 693, FERC Stats. & Regs. ] 31,242, at PP 1474, 1492, 1497,
and 1514, order on reh'g, Order No. 693-A, 120 FERC ] 61,053 (2007).
---------------------------------------------------------------------------

    4. In February 2012, the Commission issued Order No. 758 in
response to NERC's request for approval of its interpretation of
Requirement R1 of the then-current version of the protection system
maintenance standard, Reliability Standard PRC-005-1. In that order,
the Commission accepted NERC's proposed interpretation of Requirement
R1, which interpretation provided guidance on the types of protection
system equipment to which the Reliability Standard did or did not
apply. In reviewing NERC's interpretation, the Commission raised
several concerns about potential gaps in the coverage of PRC-005-1,
including a concern that the standard as written may not include all
components that serve in some protective capacity.\7\
---------------------------------------------------------------------------

    \7\ See Order No. 758, 138 FERC ] 61,094 at P 12. NERC has
addressed the Commission's concerns stated in Order No. 758 through
a series of projects modifying the PRC-005 standard. See Protection
System Maintenance Reliability Standard, Order No. 793, 145 FERC ]
61,253 (2013) (approving Reliability Standard PRC-005-2, which
incorporated specific minimum maintenance activities and maximum
time intervals for maintenance of individual components of the
protection systems and load shedding equipment affecting the bulk
electric system); Protection System Maintenance Reliability
Standard, Order No. 803,150 FERC ] 61,039 (2015) (approving PRC-005-
3 and directing NERC to develop a modification to include
maintenance and testing of supervisory relays associated with
relevant autoreclosing relay schemes).
---------------------------------------------------------------------------

B. NERC Petition and Proposed Standard PRC-005-4

    5. On December 18, 2014, NERC submitted a petition seeking approval
of proposed Reliability Standard PRC-005-4, which would add to the
applicability of Reliability Standard PRC-005-3 those sudden pressure
relays that NERC has identified as having a potential effect on the
reliable operation of the Bulk-Power System.\8\ NERC states that these
revisions were developed to satisfy NERC's commitment to develop
modifications to PRC-005 that would address the Commission's concerns,
as set out in Order No. 758, regarding the lack of maintenance
requirements for non-electrical sensing relays (such as sudden pressure
relays) that could affect the reliable operation of the Bulk-Power
System.\9\
---------------------------------------------------------------------------

    \8\ Proposed Reliability Standard PRC-005-4 is not attached to
the NOPR; however, the complete text of the proposed Reliability
Standard is available on the Commission's eLibrary document
retrieval system in Docket No. RM15-9-000 and is posted on NERC's
Web site, available at: http://www.nerc.com.
    \9\ See NERC Petition at 3, 9.
---------------------------------------------------------------------------

    6. NERC states that sudden pressure relays ``are designed to
quickly detect faults on the Bulk-Power System transformer equipment
that may remain undetected by other Protection Systems, and can operate
to limit any potential damage on the equipment.'' \10\ NERC

states that the ``misoperation of sudden pressure relays that initiate
tripping in response to fault conditions can impact the reliability of
the Bulk-Power System,'' and accordingly proposes revisions to PRC-005-
3 that will require entities to document and implement programs for
maintenance of applicable sudden pressure relays.\11\
---------------------------------------------------------------------------

    \10\ Id. at 3. NERC describes sudden pressure relays as relays
which ``respond to changes in pressure and are utilized as
protective devices for power transformers,'' and which may ``detect
rapid changes in gas pressure, oil pressure, or oil flow that are
indicative of faults within the transformer equipment.'' Id. at 13.
NERC notes that in addition to detecting faults, certain sudden
pressure relays can trip the associated transformer circuitry in
response to the fault conditions.
    \11\ Id. at 3-4.
---------------------------------------------------------------------------

    7. NERC explains that, consistent with Order No. 758, NERC's System
Protection and Control Subcommittee (SPCS) performed a technical study
``to determine which devices that respond to non-electrical quantities
should be addressed within PRC-005 identified devices.'' \12\ NERC
states that the SPCS considered a broad range of devices that respond
to non-electrical quantities, starting with the list of ninety-four
devices included in the IEEE Standard Electrical Power System Device
Function Numbers, then applying ``multiple layers of analysis to each
device to select the ones that can affect the reliability of the Bulk-
Power System.'' \13\ The SPCS first determined that only those devices
that initiate action to clear faults or mitigate abnormal system
conditions presented a risk to the Bulk-Power System. Next, the SPCS
eliminated those devices that were ``previously considered as a result
of the revised definition of Protection System or those that are
clearly not protective devices, such as primary equipment and control
devices.'' \14\ Finally, the SPCS conducted an in-depth analysis of the
remaining devices, and concluded that only one category--sudden
pressure relays that are utilized in a trip application--should be
included in the revised PRC-005-4.
---------------------------------------------------------------------------

    \12\ Id. at 4.
    \13\ Id. at 10.
    \14\ Id.
---------------------------------------------------------------------------

    8. NERC also explains that the SPCS developed a Supplemental Report
in response to comments and questions about its initial recommendations
from the Commission staff. These comments and questions focused on
whether PRC-005 should include turbine generator vibration monitors and
circuit breaker arc extinguishing systems.\15\ The SPCS Supplemental
Report, issued on October 31, 2014, examined these two kinds of devices
and provided information on events during which these devices operated
or failed to operate. The Supplemental Report concluded that neither
device affected the reliable operation of the Bulk-Power System.
---------------------------------------------------------------------------

    \15\ NERC Petition at 11, Ex. E, Sudden Pressure Relays and
Other Devices that Respond to Non-Electrical Quantities:
Supplemental Information to Support Project 2007-17.3: Protection
System Maintenance and Testing, NERC SPCS (Oct. 31, 2014) (SPCS
Supplemental Report).
---------------------------------------------------------------------------

    9. NERC states that the standard drafting team that was tasked with
developing the modifications to PRC-005 in response to Order No. 758
adopted the SPCS Report's recommendations, both as to the scope of
additional relays included, and as to the required minimum maintenance
activities and maximum maintenance intervals for these relays.
    10. NERC maintains that proposed Reliability Standard PRC-005-4
will enhance reliability by extending the coverage of an applicable
entity's protection system maintenance program to include sudden
pressure relaying components. NERC further maintains that the proposed
standard satisfies the Commission's concerns as raised in Order No. 758
``by including . . . sudden pressure relays that detect [a] fault on
Bulk-Power System transformer equipment and trip in response to fault
conditions, as recommended by the SPCS Report.'' \16\
---------------------------------------------------------------------------

    \16\ NERC Petition at 12.
---------------------------------------------------------------------------

    11. NERC explains that proposed Reliability Standard PRC-005-4 has
been modified to include a new definition for ``Sudden Pressure
Relaying,'', as well as four revised definitions as part of an
applicable entity's protection system maintenance program.\17\ NERC
further explains that the proposed standard would include a sudden
pressure relay that trips an interrupting device to isolate the
equipment it is monitoring, but ``does not include other non-electric
sensing devices, pressure relays that only initiate an alarm, or
pressure relief devices.'' \18\ In addition, NERC explains that the
revised standard replaces the term ``Special Protection System'' with
the term ``Remedial Action Scheme,'' to align the standard with NERC's
employment of the latter term moving forward, and revises Applicability
section <IP_ADDRESS> to address how the largest BES generating unit would be
determined in circumstances involving a Reserve Sharing Group.
---------------------------------------------------------------------------

    \17\ NERC proposes to modify the definitions of Protection
System Maintenance Program, Component Type, Component, and Countable
Event to reflect the addition of sudden pressure relays to the scope
of a required maintenance program. NERC Petition at 15-16.
    \18\ Id. at 18.
---------------------------------------------------------------------------

    12. NERC's proposed implementation plan for PRC-005-4 incorporates
the phased-in implementation period approved for PRC-005-2, which has a
twelve year phase-in period, with the addition of compliance dates for
the new requirements for applicable sudden pressure relays. NERC asks
that PRC-005-4 become effective the first day of the first calendar
quarter following Commission approval. Reliability Standard PRC-005-3
would be retired immediately prior to PRC-005-4 becoming effective.
    13. NERC explains that the evidence retention period for PRC-005-4
is shorter than that required in the preceding versions of the
standard, as it requires entities to maintain records for one
maintenance cycle, rather than two cycles, if the interval of the
maintenance activity is longer than the audit cycle. For maintenance
activities where the interval is shorter than the audit cycle,
documentation is to be retained for all maintenance activities since
the previous audit.
    14. NERC states that the violation risk factors proposed in PRC-
005-4 track those in previous versions of the standard, and that the
violation severity levels have been revised to include the additional
component (sudden pressure relays) in a manner consistent with the
approach taken for PRC-005-3.

II. Discussion

    15. Pursuant to section 215(d)(2) of the FPA, the Commission
proposes to approve Reliability Standard PRC-005-4, as well as the new
definition of Sudden Pressure Relaying, the four revised definitions
referenced in the proposed standard, the assigned violation risk
factors and violation severity levels, and the proposed implementation
plan. We believe that proposed Reliability Standard PRC-005-4 will
enhance reliability by requiring the inclusion of sudden pressure
relays of certain criteria that are utilized in a trip application as
part of the protection system maintenance program, and by requiring
entities to undertake minimum required maintenance activities at
maximum defined maintenance intervals.
    16. NERC has relied on the SPCS's determination that the only non-
electrical sensing devices that can impact reliable operation of the
Bulk-Power System are the sudden pressure relays that can detect rapid
changes in gas pressure, oil pressure, or oil flow that are indicative
of faults within the transformer equipment, and can trip associated
transformer circuitry to isolate the transformer and limit the
potential damage of the equipment. We agree that these relays should be
included in an adequate protection system maintenance program.
    17. However, we continue to have some concern that the misoperation
of other types of non-electrical sensing relays or devices, such as
pressure

sensing devices associated with air blast or SF6 circuit breaker arc
extinguishing systems, could affect the reliable operation of the Bulk-
Power System. These non-electrical sensing devices are utilized in this
context to give an indication that the circuit breaker may be unable to
operate as designed on the Bulk-Power System. With regard to these
types of devices, the SPCS stated that, ``there is no operating
experience in which misoperation of a density switch or sensor [i.e,
pressure sensing device] in response to a system disturbance has
contributed to a cascading event.'' \19\ However, we expect Commission
staff to continue exploring this issue with NERC, particularly in light
of the findings in NERC's 2014 and 2013 State of Reliability reports
that AC substation equipment failures remain among the leading causes
of Bulk Power System problems.
---------------------------------------------------------------------------

    \19\ SPCS Supplemental Report at 4.
---------------------------------------------------------------------------

III. Information Collection Statement

    18. The following collection of information contained in this
Notice of Proposed Rulemaking is subject to review by the Office of
Management and Budget (OMB) under section 3507(d) of the Paperwork
Reduction Act of 1995 (PRA).\20\ OMB's regulations require approval of
certain information collection requirements imposed by agency
rules.\21\ Upon approval of a collection(s) of information, OMB will
assign an OMB control number and an expiration date. Respondents
subject to the filing requirements of a rule will not be penalized for
failing to respond to these collections of information unless the
collections of information display a valid OMB control number.
---------------------------------------------------------------------------

    \20\ 44 U.S.C. 3507(d) (2006).
    \21\ 5 CFR 1320.11 (2012).
---------------------------------------------------------------------------

    19. We solicit comments on the Commission's need for this
information, whether the information will have practical utility, the
accuracy of the burden estimates, ways to enhance the quality, utility,
and clarity of the information to be collected or retained, and any
suggested methods for minimizing respondents' burden, including the use
of automated information techniques. Specifically, the Commission asks
that any revised burden or cost estimates submitted by commenters be
supported by sufficient detail to understand how the estimates are
generated.
    20. The Commission proposes to approve Reliability Standard PRC-
005-4, which will replace PRC-005-3 (Protection System and Automatic
Reclosing Maintenance). The proposed Reliability Standard expands the
existing standard to cover sudden pressure relays that meet certain
criteria, thereby imposing mandatory minimum maintenance activities and
maximum maintenance intervals for the applicable relays. Because the
specific requirements were designed to reflect common industry
practice, entities are not expected to experience a meaningful change
in actual maintenance and documentation practices. However, each
applicable entity will have to perform a one-time review of sudden
pressure relays that detect rapid changes in gas pressure, oil
pressure, or oil flow that are indicative of faults within transformer
equipment, and, if it has applicable sudden pressure relay devices,
review current maintenance programs to ensure that they meet the
requirements of proposed standard PRC-005-4. Accordingly, all
additional information collection costs are expected to be limited to
the first year of implementation of the revised standard.
    21. Proposed Reliability Standard PRC-005-4 reduces the evidence
retention requirements approved in previously-approved versions of the
standard, and now requires entities to maintain documentation of
maintenance activities for only one maintenance cycle (a maximum of
twelve years) if the maintenance interval is longer than the audit
cycle. For maintenance activities where the interval is shorter than
the audit cycle, documentation is to be retained for all maintenance
activities since the previous audit. While the potential data retention
requirement exceeds the three-year period that is routinely allowed for
regulations requiring record retention under the OMB regulations
implementing the PRA,\22\ the maximum evidence retention period has
been reduced from 24 years to a maximum of 12 years as a result of the
Commission's prior request for comment on the reasonableness of the
evidence retention period in earlier versions of the standard, and
appears to reflect the minimum time needed to ensure compliance with
maintenance requirements.\23\
---------------------------------------------------------------------------

    \22\ See 5 CFR 1320.5(d)(2)(iv).
    \23\ See Order No. 803, 150 FERC ] 61,039 at PP 37-38.
---------------------------------------------------------------------------

    22. Public Reporting Burden: Affected entities must perform a one-
time review of their existing sudden pressure relay schemes and
associated maintenance programs to ensure that the programs contain at
a minimum the activities required by Reliability Standard PRC-005-4. If
the existing maintenance program does not meet the criteria in
Reliability Standard PRC-005-4, the entity will have to make certain
adjustments to the program.
    23. Our estimate below assumes that the number of unique applicable
entities (distribution providers, generator owners and transmission
owners, or a combination of those) in the United States is
approximately 1,287 \24\ and the time required to do the one-time
review will be approximately eight hours. The estimate further assumes
that the one-time review would be performed by an engineer at a rate of
$65.34 per hour.\25\
---------------------------------------------------------------------------

    \24\ This figure reflects the generator owners, transmission
owners, and distribution providers identified in the NERC Compliance
Registry as of February 27, 2015.
    \25\ The figure is taken from the Bureau of Labor Statistics at
http://www.bls.gov/oes/current/naics2_22.htm; Occupation Code: 17-
2071).

                                      RM15-9-000 (Mandatory Reliability Standards: Reliability Standard PRC-005-4)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Total annual
                                                             Number of     Annual number   Total number   Average burden   burden hours      Cost per
                                                            respondents    of responses    of responses    (hours) cost    total annual   respondent ($)
                                                                          per respondent                   per response        cost
                                                                     (1)             (2)   (1)*(2) = (3)             (4)   (3)*(4) = (5)       (5) / (1)
--------------------------------------------------------------------------------------------------------------------------------------------------------
One-time review of sudden pressure relay maintenance               1,287               1           1,287               8          10,296            $523
 program and adjustment.................................                                                            $523        $673,101
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Title: FERC-725P1,\26\ Mandatory Reliability Standards: Reliability
Standard PRC-005-4.
---------------------------------------------------------------------------

    \26\ The FERC-725P1 is a temporary collection established so the
Commission can submit this proposed rulemaking to OMB on time.
However, the burden contained in this rulemaking should be contained
in FERC-725G (OMB Control No. 1902-0252). Commission staff plans
eventually to move this burden to FERC-725G.
---------------------------------------------------------------------------

    Action: Proposed Collection of Information.
    OMB Control No: To be determined.
    Respondents: Business or other for-profit and not-for-profit
institutions.
    Frequency of Responses: One time.
    Necessity of the Information: The proposed Reliability Standard
PRC-005-4, if adopted, would implement the Congressional mandate of the
Energy Policy Act of 2005 to develop mandatory and enforceable
Reliability Standards to better ensure the reliability of the nation's
Bulk-Power System. Specifically, the proposal would ensure that
transmission and generation protection systems affecting the
reliability of the bulk electric system are maintained and tested.
    24. Internal review: The Commission has reviewed revised
Reliability Standard PRC-005-4 and made a determination that approval
of this standard 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.
    25. Interested persons may obtain information on the reporting
requirements by contacting the Federal Energy Regulatory Commission,
Office of the Executive Director, 888 First Street NE., Washington, DC
20426 [Attention: Ellen Brown, email<EMAIL_ADDRESS>phone:
(202) 502-8663, fax:<PHONE_NUMBER>].
    26. Comments concerning the information collections proposed in
this NOPR and the associated burden estimates should be sent to the
Commission in this docket and may also be sent to the Office of
Management and Budget, Office of Information and Regulatory Affairs
[Attention: Desk Officer for the Federal Energy Regulatory Commission].
For security reasons, comments should be sent by email to OMB at the
following email address<EMAIL_ADDRESS>Please reference
the docket number of this Notice of Proposed Rulemaking (Docket No.
RM15-9-000) in your submission.

IV. Regulatory Flexibility Act Analysis

    27. The Regulatory Flexibility Act of 1980 (RFA) \27\ generally
requires a description and analysis of Proposed Rules that will have
significant economic impact on a substantial number of small entities.
Proposed Reliability Standard PRC-005-4 is expected to impose an
additional, one-time burden on 1,287 entities (distribution providers,
generator owners, and transmission owners, or a combination thereof).
Comparison of the applicable entities with FERC's small business data
indicates that approximately 789 of the 1,287 entities are small
entities, or 61.31 percent of the respondents affected by this proposed
Reliability Standard.\28\
---------------------------------------------------------------------------

    \27\ 5 U.S.C. 601-12. The number of small distribution providers
required to comply with PRC-005-4 may decrease significantly. In
March 2015, the Commission approved revisions to the NERC Rules of
Procedure to implement NERC's ``risk based registration'' program,
which raised the registry threshold for distribution providers from
a 25 MW to 75 MW peak load. North American Electric Reliability
Corp., 150 FERC ] 61,213 (2015).
    \28\ The Small Business Administration sets the threshold for
what constitutes a small business. Public utilities may fall under
one of several different categories, each with a size threshold
based on the company's number of employees, including affiliates,
the parent company, and subsidiaries. For the analysis in this NOPR,
we are using a 500 employee threshold for each affected entity. Each
entity is classified as Electric Bulk Power Transmission and Control
(NAICS code 221121).
---------------------------------------------------------------------------

    28. On average, each small entity affected may have a one-time cost
of $523, representing a one-time review of the program for each entity,
consisting of 8 man-hours at $65.34/hour, as explained above in the
information collection statement. We do not consider this cost to be a
significant economic impact for small entities. Accordingly, the
Commission certifies that proposed Reliability Standard PRC-005-4 will
not have a significant economic impact on a substantial number of small
entities. The Commission seeks comment on this certification.

V. Environmental Analysis

    29. 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.\29\ 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.\30\ The actions proposed
herein fall within this categorical exclusion in the Commission's
regulations.
---------------------------------------------------------------------------

    \29\ Regulations Implementing the National Environmental Policy
Act of 1969, Order No. 486, FERC Stats. & Regs. ] 30,783 (1987).
    \30\ 18 CFR 380.4(a)(2)(ii).
---------------------------------------------------------------------------

VI. Comment Procedures

    30. The Commission invites interested persons to submit comments on
the matters and issues proposed in this notice to be adopted, including
any related matters or alternative proposals that commenters may wish
to discuss. Comments are due June 22, 2015. Comments must refer to
Docket No. RM15-9-000, and must include the commenter's name, the
organization they represent, if applicable, and address.
    31. The Commission encourages comments to be filed electronically
via the eFiling link on the Commission's Web site at http://www.ferc.gov. The Commission accepts most standard word processing
formats. Documents created electronically using word processing
software should be filed in native applications or print-to-PDF format
and not in a scanned format. Commenters filing electronically do not
need to make a paper filing.
    32. Commenters that are not able to file comments electronically
must send an original of their comments to: Federal Energy Regulatory
Commission, Secretary of the Commission, 888 First Street NE.,
Washington, DC 20426.
    33. All comments will be placed in the Commission's public files
and may be viewed, printed, or downloaded remotely as described in the
Document Availability section below. Commenters on this proposal are
not required to serve copies of their comments on other commenters.

VII. Document Availability

    34. 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.
    35. 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.
    36. 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 email at
<EMAIL_ADDRESS>or the Public Reference Room at (202) 502-
8371, TTY<PHONE_NUMBER>. Email the Public Reference Room at
<EMAIL_ADDRESS>
    By direction of the Commission.

    Issued: April 16, 2015.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2015-09228 Filed 4-21-15; 8:45 am]
 BILLING CODE 6717-01-P