[Federal Register: December 26, 2006 (Volume 71, Number 247)]
[Proposed Rules]
[Page 77353-77356]
[DOCID:fr26de06-16]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA R03-OAR-2006-0921; FRL-8261-2]

Approval and Promulgation of Air Quality Implementation Plans;
Virginia; Amendments to VOC and NOX Emission Control Areas
and VOC Control Regulations

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve State Implementation Plan (SIP)
revisions submitted by the Commonwealth of Virginia. These revisions
amend the existing volatile organic compound (VOC) and nitrogen oxide
(NOX) emissions control areas, and amend certain VOC and
NOX regulations in order to manage the extension of
applicability of these provisions to the amended VOC and NOX
emission control areas. This action is being taken under the Clean Air
Act (CAA or the Act).

DATES: Written comments must be received on or before January 25, 2007.

ADDRESSES: Submit your comments, identified by Docket ID Number EPA-
R03-OAR-2006-0921 by one of the following methods:
    A. http://www.regulations.gov. Follow the on-line instructions for

submitting comments.
    B. E-mail<EMAIL_ADDRESS>    C. Mail: EPA-R03-OAR-2006-0921, Makeba Morris, Chief, Air Quality
Planning Branch, Mailcode 3AP21, U.S. Environmental Protection Agency,
Region III, 1650 Arch Street, Philadelphia, Pennsylvania 19103.
    D. Hand Delivery: At the previously listed EPA Region III address.
Such deliveries are only accepted during the Docket's normal hours of
operation, and special arrangements should be made for deliveries of
boxed information.
    Instructions: Direct your comments to Docket ID No. EPA-R03-OAR-
2006-0921. EPA's policy is that all comments received will be included
in the public docket without change, and may be made available online
at http://www.regulations.gov, including any personal information provided,

unless the comment includes information claimed to be Confidential
Business Information (CBI) or other information whose disclosure is
restricted by statute. Do not submit information that you consider to
be CBI or otherwise protected through http://www.regulations.gov or e-mail.

The http://www.regulations.gov Web site is an ``anonymous access'' system,

which means EPA will not know your identity or contact information
unless you provide it in the body of your comment. If you send an e-
mail comment directly to EPA without going through http://www.regulations.gov,

your e-mail address will be automatically captured and included as part
of the comment that is placed in the public docket and made available
on the Internet. If you submit an electronic comment, EPA recommends
that you include your name and other contact information in the body of
your comment and with any disk or CD-ROM you submit. If EPA cannot read
your comment due to technical difficulties and cannot contact you for
clarification, EPA may not be able to consider your comment. Electronic
files should avoid the use of special characters, any form of
encryption, and be free of any defects or viruses.
    Docket: All documents in the electronic docket are listed in the
http://www.regulations.gov index. Although listed in the index, some

information is not publicly available, i.e., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, is not placed on the Internet and will be
publicly available only in hard copy form. Publicly available docket
materials are available either electronically at http://www.regulations.gov or

in hard copy during normal business hours at the Air Protection
Division, U.S. Environmental Protection Agency,

Region III, 1650 Arch Street, Philadelphia, Pennsylvania 19103. Copies
of the State submittal are available at the Virginia Department of
Environmental Quality, 629 East Main Street, Richmond, Virginia 23219.

FOR FURTHER INFORMATION CONTACT: Ellen Wentworth,<PHONE_NUMBER>, or by
e-mail at<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Background

    On July 18, 1997, EPA promulgated a revised 8-hour ozone standard
of 0.08 parts per million (ppm). This new standard is more stringent
than the previous 1-hour standard. On April 30, 2004, (69 FR 23858),
the EPA designated and classified areas for the 8-hour ozone national
ambient air quality standard (NAAQS). For most areas, these
designations became effective June 15, 2004. EPA designated, as
nonattainment, any area violating the 8-hour ozone NAAQS based on the
air quality for the three years of 2001-2003. These were the most
recent three years of data at the time EPA designated 8-hour areas. The
8-hour standard replaced the 1-hour standard on June 15, 2005 (69 FR
23996).
    Currently, Virginia's Chapter 40 of the Regulations for the Control
and Abatement of Air Pollution contains a number of rules used to
enforce control measures designed to attain and maintain the ozone air
quality standard. The geographic applicability of these rules is
defined by establishing VOC and NOX emissions control areas
in a list located in 9 VAC 5-20-206. The Commonwealth of Virginia's
regulations establish VOC and NOX emissions control areas to
provide the legal mechanism to define the geographic areas in which
Virginia implements control measures to attain and maintain the air
quality standards for ozone. The emissions control areas may or may not
coincide with the nonattainment areas found in 9 VAC 5-20-204,
depending upon the necessity of the planning requirements. In order to
implement control measures to attain and maintain the air quality
standards for ozone, Virginia has proposed to expand the VOC and
NOX emissions control areas (9 VAC 5-20-206) and extend the
geographic applicability of the VOC and NOX regulatory rules
in Chapter 40 of the regulations into the new 8-hour nonattainment
areas. Accordingly, 9 VAC 5-20-206 is being amended to include those
counties and cities in the corresponding new 8-hour ozone nonattainment
areas that were not previously listed in 9 VAC 5-20-206. Most of these
Chapter 40 regulations will automatically apply within all of the new
VOC emissions control areas. Others have provisions that apply only to
certain existing VOC and NOX emission control areas. Each of
these rules is being amended individually in order to manage the
extension of applicability of these provisions to the additional VOC
and NOX emission control areas with coherence and
consistency.

II. Summary of SIP Revisions

    On September 12, 2006, the Commonwealth of Virginia submitted a
revision to its SIP. This revision amends 9 VAC 5-20-206 of Chapter 20
of Virginia's Regulations for the Control and Abatement of Air
Pollution to establish a new Fredericksburg NOX and VOC
Emissions Control Area, consisting of Spotsylvania County, and
Fredericksburg City; to expand the Richmond VOC and NOX
Emissions Control Area to include Prince George County and Petersburg
City; and to expand the Hampton Roads VOC and NOX Emissions
Control Area to include Gloucester County and Isle of Wight County.
These amendments are necessary to include those counties and cities in
the corresponding new 8-hour ozone nonattainment areas that were not
previously listed in 9 VAC 5-20-206, and to implement VOC control and
contingency measures within the 8-hour ozone nonattainment areas and 1-
hour ozone maintenance areas.
    On October 2, 2006, the Commonwealth of Virginia submitted a
revision to its SIP. This revision consists of amendments to
regulations found in Chapter 40 of Virginia's Regulations for the
Control and Abatement of Air Pollution that implement non-CTG and CTG
VOC reasonably available control technology (RACT) control requirements
within those areas that are designated as VOC emissions control areas
in 9 VAC 5-20-206.
    As stated previously, most of the Chapter 40 rules will
automatically be extended into the new 8-hour nonattainment areas
automatically when the VOC emissions control areas in 9 VAC 5-20-206
are amended. Some Chapter 40 rules have provisions that apply only to
certain existing VOC and NOX emissions control areas. In
this revision, Articles 4, 36, 37, and 53 are being amended
individually in order to manage the extension of applicability of these
provisions to the additional VOC and NOX emission control
areas.
    Article 4, Emission Standards for General Process Operations, is
being amended to ensure that VOC RACT is not automatically required
from large VOC sources in the new areas that were included in the
Richmond VOC Emissions Control Area (County of Prince George and City
of Petersburg). Article 4 currently applies in the Northern Virginia
and Richmond Emissions Control Areas designated in 9 VAC 5-20-206. With
the addition of Prince George County and Petersburg to the Richmond VOC
Emissions Control Area, VOC RACT would normally automatically apply to
all large existing sources in the County of Prince George and the City
of Petersburg. However, the Richmond 8-hour ozone nonattainment area
was reclassified from a moderate 8-hour ozone nonattainment area to a
marginal 8-hour ozone nonattainment area (69 FR 56697, September 22,
2004). EPA only requires existing sources in nonattainment areas that
are classified as moderate and above to implement VOC RACT.
    Article 36, Packaging and Publishing Rotogravure Printing, and
Flexographic Printing, is being amended to provide exemptions for small
facilities in all VOC emissions control areas, other than the Northern
Virginia VOC Emissions Control Area, whose potential to emit is less
than 100 tons per year.
    Article 37, Storage or Transfer of Petroleum Liquids, is being
amended to ensure that Stage II Vapor Recovery is not required at
gasoline dispensing stations in the new areas within the expanded
Richmond VOC Emissions Control Area--Petersburg City, and Prince George
County, since these areas were not part of the 1-hour ozone moderate
nonattainment area. This revision also removes applicability
redundancies resulting from this action and a previous amendment that
added the Western Virginia VOC Emissions Control Area (Botetourt
County, Frederick County, and Winchester City, 70 FR 21625, April 27,
2005).
    Article 53, Emission Standards for Lithographic Printing Processes,
is being amended to apply in all VOC emissions control areas. The
amendment also exempts from the provisions of this Article, all
facilities in all VOC emissions control areas, other than the Northern
Virginia VOC Emissions Control Area, whose potential to emit is less
than 100 tons per year of VOCs. When EPA approved the lithographic
printing processes regulation into the Virginia SIP (62 FR 11334, March
12, 1997), it was codified under Article 45. In this action, EPA is
also recodifying the lithographic printing processes regulation (9 VAC
5-40-7800-7940, inclusive) from Article 45 to Article 53 to be
consistent with Virginia's regulations.

III. General Information Pertaining to SIP Submittals From the
Commonwealth of Virginia

    In 1995, Virginia adopted legislation that provides, subject to
certain conditions, for an environmental assessment (audit)
``privilege'' for voluntary compliance evaluations performed by a
regulated entity. The legislation further addresses the relative burden
of proof for parties either asserting the privilege or seeking
disclosure of documents for which the privilege is claimed. Virginia's
legislation also provides, subject to certain conditions, for a penalty
waiver for violations of environmental laws when a regulated entity
discovers such violations pursuant to a voluntary compliance evaluation
and voluntarily discloses such violations to the Commonwealth and takes
prompt and appropriate measures to remedy the violations. Virginia's
Voluntary Environmental Assessment Privilege Law, Va. Code Sec. 10.1-
1198, provides a privilege that protects from disclosure documents and
information about the content of those documents that are the product
of a voluntary environmental assessment. The Privilege Law does not
extend to documents or information (1) that are generated or developed
before the commencement of a voluntary environmental assessment; (2)
that are prepared independently of the assessment process; (3) that
demonstrate a clear, imminent and substantial danger to the public
health or environment; or (4) that are required by law.
    On January 12, 1998, the Commonwealth of Virginia Office of the
Attorney General provided a legal opinion that states that the
Privilege law, Va. Code Sec. 10.1-1198, precludes granting a privilege
to documents and information ``required by law,'' including documents
and information ``required by Federal law to maintain program
delegation, authorization or approval,'' since Virginia must ``enforce
Federally authorized environmental programs in a manner that is no less
stringent than their Federal counterparts. . . .'' The opinion
concludes that ``[r]egarding Sec.  10.1-1198, therefore, documents or
other information needed for civil or criminal enforcement under one of
these programs could not be privileged because such documents and
information are essential to pursuing enforcement in a manner required
by Federal law to maintain program delegation, authorization or
approval.''
    Virginia's Immunity law, Va. Code Sec. 10.1-1199, provides that
``[t]o the extent consistent with requirements imposed by Federal
law,'' any person making a voluntary disclosure of information to a
state agency regarding a violation of an environmental statute,
regulation, permit, or administrative order is granted immunity from
administrative or civil penalty. The Attorney General's January 12,
1998 opinion states that the quoted language renders this statute
inapplicable to enforcement of any Federally authorized programs, since
``no immunity could be afforded from administrative, civil, or criminal
penalties because granting such immunity would not be consistent with
Federal law, which is one of the criteria for immunity.''
    Therefore, EPA has determined that Virginia's Privilege and
Immunity statutes will not preclude the Commonwealth from enforcing its
program consistent with the Federal requirements. In any event, because
EPA has also determined that a state audit privilege and immunity law
can affect only state enforcement and cannot have any impact on Federal
enforcement authorities, EPA may at any time invoke its authority under
the Clean Air Act, including, for example, sections 113, 167, 205, 211
or 213, to enforce the requirements or prohibitions of the state plan,
independently of any state enforcement effort. In addition, citizen
enforcement under section 304 of the Clean Air Act is likewise
unaffected by this, or any, state audit privilege or immunity law.

IV. Proposed Action

    EPA is proposing to approve the Commonwealth of Virginia's SIP
revisions amending existing regulations pertaining to emissions control
areas, and the accompanying rule regulations, which were submitted on
September 12 and October 2, 2006. EPA is soliciting public comments on
the issues discussed in this document. These comments will be
considered before taking final action.

V. Statutory and Executive Order Reviews

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this
proposed action is not a ``significant regulatory action'' and
therefore is not subject to review by the Office of Management and
Budget. For this reason, this action is also not subject to Executive
Order 13211, ``Actions Concerning Regulations That Significantly Affect
Energy Supply, Distribution, or Use'' (66 FR 28355 (May 22, 2001)).
This action merely proposes to approve state law as meeting Federal
requirements and imposes no additional requirements beyond those
imposed by state law. Accordingly, the Administrator certifies that
this proposed rule will not have a significant economic impact on a
substantial number of small entities under the Regulatory Flexibility
Act (5 U.S.C. 601 et seq.). Because this rule proposes to approve pre-
existing requirements under state law and does not impose any
additional enforceable duty beyond that required by state law, it does
not contain any unfunded mandate or significantly or uniquely affect
small governments, as described in the Unfunded Mandates Reform Act of
1995 (Pub. L. 104-4). This proposed rule also does not have a
substantial direct effect on one or more Indian tribes, on the
relationship between the Federal Government and Indian tribes, or on
the distribution of power and responsibilities between the Federal
Government and Indian tribes, as specified by Executive Order 13175 (65
FR 67249, November 9, 2000), nor will it have substantial direct
effects on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government, as specified
in Executive Order 13132 (64 FR 43255, August 10, 1999), because it
merely proposes to approve a state rule implementing a Federal
requirement, and does not alter the relationship or the distribution of
power and responsibilities established in the Clean Air Act. This
proposed rule also is not subject to Executive Order 13045 (62 FR
19885, April 23, 1997), because it is not economically significant.
    In reviewing SIP submissions, EPA's role is to approve state
choices, provided that they meet the criteria of the Clean Air Act. In
this context, in the absence of a prior existing requirement for the
State to use voluntary consensus standards (VCS), EPA has no authority
to disapprove a SIP submission for failure to use VCS. It would thus be
inconsistent with applicable law for EPA, when it reviews a SIP
submission, to use VCS in place of a SIP submission that otherwise
satisfies the provisions of the Clean Air Act. Thus, the requirements
of section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (15 U.S.C. 272 note) do not apply. As required by section 3
of Executive Order 12988 (61 FR 4729, February 7, 1996), in issuing
this proposed rule, EPA has taken the necessary steps to eliminate
drafting errors and ambiguity, minimize potential litigation, and
provide a clear legal standard for affected conduct. EPA has complied
with Executive Order

12630 (53 FR 8859, March 15, 1988) by examining the takings
implications of the rule in accordance with the ``Attorney General's
Supplemental Guidelines for the Evaluation of Risk and Avoidance of
Unanticipated Takings'' issued under the executive order.
    This proposed rule, pertaining to amendments to existing regulation
provisions concerning Virginia's emissions control areas, and
accompanying regulatory changes, does not impose an information
collection burden under the provisions of the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501 et seq.).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Nitrogen dioxide,
Ozone, Reporting and recordkeeping requirements, Volatile organic
compounds.

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

    Dated: December 14, 2006
William T. Wisniewski,
Acting Regional Administrator, Region III.
 [FR Doc. E6-22058 Filed 12-22-06; 8:45 am]

BILLING CODE 6560-50-P


[Federal Register: March 25, 2009 (Volume 74, Number 56)]
[Proposed Rules]
[Page 12739-12747]
[DOCID:fr25mr09-46]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 38

[Docket No. RM05-5-013]

Standards for Business Practices and Communication Protocols for
Public Utilities

March 19, 2009.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) proposes
to incorporate by reference in its regulations the latest version
(Version 002.1) of certain business practice standards adopted by the
Wholesale Electric Quadrant of the North American Energy Standards
Board (NAESB). NAESB's Version 002.1 Standards mainly modify NAESB's
Version 001 Standards in response to Order Nos. 890, 890-A, and 890-B.

DATES: Comments on the proposed rule are due April 24, 2009.

ADDRESSES: You may submit comments identified by Docket No. RM05-5-013,
by one of the following methods:
     Agency Web Site: http://ferc.gov. Follow the instructions
for submitting comments via the eFiling link found in the Comment
Procedures Section of the preamble.
     Mail: Commenters unable to file comments electronically
must mail or hand deliver an original and 14 copies of their comments
to the Federal Energy Regulatory Commission, Secretary of the
Commission, 888 First Street, NE., Washington, DC 20426. Please refer
to the Comment Procedures Section of the preamble for additional
information on how to file paper comments.

FOR FURTHER INFORMATION CONTACT:
Ryan M. Irwin (technical issues), Office of Energy Market Regulation,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426,<PHONE_NUMBER>.
Valerie Roth (technical issues), Office of Energy Market Regulation,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426,<PHONE_NUMBER>.
Gary D. Cohen (legal issues), Office of the General Counsel, Federal
Energy Regulatory Commission, 888 First Street, NE., Washington, DC
20426,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:
    1. In this Notice of Proposed Rulemaking (NOPR), the Federal Energy
Regulatory Commission (Commission) proposes to amend its regulations at
18 CFR 38.2 under the Federal Power Act \1\ to incorporate by reference
the latest version (Version 002.1) of certain business practice
standards adopted by the Wholesale Electric Quadrant (WEQ) of the North
American Energy Standards Board (NAESB). These revised standards update
earlier versions that the Commission previously incorporated by
reference into its regulations at 18 CFR 38.2 in Order Nos. 676, 676-B,
698, and 676-C,\2\ as well as the Version 002.0 standards that NAESB
filed with the Commission on September 2, 2008. The new and revised
standards that NAESB adopted in its Version 002.0 and 002.1 standards
implement requirements of Order Nos. 890, 890-A, and 890-B.\3\ In
addition, NAESB developed standards to support the Commission's eTariff
program, modified the Commercial Timing Table (WEQ-004 Appendix D) and
Transmission Loading Relief Standards (WEQ-008) to provide clarity and
align NAESB's business practice standards with the reliability
standards adopted by the North American Electric Reliability
Corporation (NERC), revised the Manual Time Error Correction Standards
(WEQ-006) to maintain consistency with revised NERC Standard BAL-004,
and amended certain ancillary services definitions appearing in the
Open Access Same-Time Information Systems (OASIS) Standards (WEQ-001)
relating to the inclusion of demand resources as part of ancillary
services.
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    \1\ 16 U.S.C. 791a, et seq.
    \2\ Standards for Business Practices and Communication Protocols
for Public Utilities, Order No. 676, 71 FR 26,199 (May 4, 2006),
FERC Stats. & Regs., Regulations Preambles ] 31,216 (Apr. 25, 2006),
reh'g denied, Order No. 676-A, 116 FERC ] 61,255 (2006), Order No.
676-B, 72 FR 21,095 (Apr. 30, 2007), FERC Stats. & Regs.,
Regulations Preambles ] 31,246 (Apr. 19, 2007), Order No. 676-C, 73
FR 43,848 (July 29, 2008), FERC Stats. & Regs., Regulations
Preambles ] 31,274 (July 21, 2008), Order No. 676-D, granting
clarification and denying reh'g, 124 FERC ] 61,317 (2008); Standards
for Business Practices for Interstate Natural Gas Pipelines, Order
No. 698, 72 FR 38,757 (July 16, 2007), FERC Stats. & Regs.,
Regulations Preambles ] 31,251 (June 25, 2007), order on
clarification and reh'g, Order No. 698-A, 121 FERC ] 61,264 (2007).
    \3\ Preventing Undue Discrimination and Preference in
Transmission Service, Order No. 890, 72 FR 12,266 (March 15 2007),
FERC Stats. & Regs., Regulations Preambles ] 31,241 (2007) (Order
No. 890); order on reh'g, Order No. 890-A, 73 FR 2984 (Jan. 16,
2008), FERC Stats. & Regs., Regulations Preambles ] 31,261 (2007)
(Order No. 890-A); order on reh'g and clarification, Order No. 890-
B, 123 FERC ] 61,299 (2008).
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I. Background

    2. NAESB is a non-profit standards development organization
established in January 2002 that serves as an industry forum for the
development of business practice standards. These standards promote a
seamless marketplace for wholesale and retail natural gas and
electricity.\4\ Since 1995, NAESB and its predecessor, the Gas Industry
Standards Board, have been accredited members of the American National
Standards Institute (ANSI), complying with ANSI's requirements that its
standards reflect a consensus of the affected industries.\5\
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    \4\ See Standards for Business Practices and Communication
Protocols for Public Utilities, Notice of Proposed Rulemaking, 72 FR
8318 (Feb. 27, 2007), FERC Stats. & Regs., Proposed Regs. ] 32,612
at P 3 (Feb. 20, 2007).
    \5\ Id.
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    3. NAESB's standards include business practices that streamline the
transactional processes of the natural gas and electric industries, as
well as communication protocols and related standards designed to
improve the efficiency of communication within each industry. NAESB
supports all four quadrants of the gas and electric industries--
wholesale gas, wholesale electric, retail gas, and retail electric. All
participants in the gas and electric industries are eligible to join
NAESB

and participate in standards development.\6\
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    \6\ Id. P 4.
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    4. NAESB develops its standards under a consensus process so that
the standards draw support from a wide range of industry members.
NAESB's procedures are designed to ensure that all industry members can
have input into the development of a standard, whether or not they are
members of NAESB.\7\ Furthermore, each standard the WEQ adopts is
supported by a consensus of the six industry segments: transmission,
generation, marketer/brokers, distribution/load serving entities, end
users, and independent grid operators/planners. Under the WEQ process,
for a standard to be approved, it must receive a super-majority vote of
67 percent of the members of the WEQ's Executive Committee with support
from at least 40 percent of each of the six industry segments. For
final approval, 67 percent of the WEQ's general membership must ratify
the standards.\8\
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    \7\ Id. P 5.
    \8\ Standards for Business Practices and Communication Protocols
for Public Utilities, Notice of Proposed Rulemaking, 70 FR 28,222
((May 17, 2005), FERC Stats. & Regs., Proposed Regs. ] 32,582, P 13
(May 9, 2005).
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    5. In a series of Orders,\9\ the Commission has incorporated
certain of NAESB's standards into its regulations. These standards
include standards for business practices as well as standards and
protocols for electronic communication, and business practice standards
related to reliability standards promulgated by NERC and approved by
the Commission. In Order No. 698, the Commission also incorporated by
reference into its regulations the NAESB Gas/Electric Coordination
Standards (WEQ-011). These standards established communication
protocols between interstate natural gas pipelines and electric power
plant operators designed to enhance reliability by improving
communication between the gas and electric industries relating to the
scheduling of gas-fired generators.
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    \9\ See n.2 supra.
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    6. On September 2, 2008, NAESB reported to the Commission that its
WEQ Executive Committee had approved Version 002.0 of its business
practice standards.\10\ The standards were published on September 30,
2008. NAESB states that its leadership responded to Order Nos. 890,
890-A, and 890-B, by requesting that its Electronic Scheduling
Subcommittee/Information Technology Subcommittee (ESS/ITS) and its
Business Practice Subcommittee (BPS) coordinate efforts to address the
issues raised by those orders. NAESB also states that, in formulating
its work schedule, it distinguished between the findings in Order No.
890 that called for a specific completion date and other tasks that
were less time sensitive and developed a work schedule to allow
completion of the more time-sensitive items earlier in the process. As
part of this process, NAESB states that the ESS/ITS and BPS worked in
close coordination with the pertinent NERC committees to draft business
practice standards on Order No. 890 issues that complement NERC's
reliability standards related to these issues, so that the standards
for both organizations will be consistent.\11\
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    \10\ See NAESB supplemental report dated Nov. 14, 2008.
    \11\ The Commission addresses the associated reliability
standards proposed by NERC in a companion Notice of Proposed
Rulemaking being issued in Docket No. RM08-19-000.
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    7. While the majority of the revisions made in NAESB's Version
002.0 Standards were adopted in response to Order Nos. 890, 890-A, and
890-B, the Version 002.0 Standards also include: (1) The eTariff
related standards developed by NAESB in coordination with Commission
staff and the electric, gas, and oil industries; (2) modifications to
WEQ's existing interconnection time monitor standards in the Manual
Time Error Corrections Standards (WEQ-006) to ensure the NAESB
standards remain consistent with NERC's BAL-004 standard; and (3) the
explicit inclusion of demand resources in the definitions of certain
ancillary services.
    8. On February 19, 2009, NAESB notified the Commission that the WEQ
Executive Committee had approved its Version 002.1 standards, which
include both new standards and modifications to existing Version 002.0
standards.\12\ The Version 002.1 standards include new standards
related to capacity benefit margin and rollover rights, and were
developed in response to Order Nos. 890, 890-A, and 676. Additional
modifications included in the Version 002.1 standards include: (1)
Modifications to existing standards pertaining to rollover rights; (2)
modifications to the Coordinate Interchange Timing Tables contained in
Appendix D of the Coordinate Interchange Standards (WEQ-004) to clarify
the differences in timing requirements for the Western Electricity
Coordinating Council and all other interconnections, complementary to
the NERC reliability standards; and (3) modifications to the
Transmission Loading Relief--Eastern Interconnection Standards (WEQ-
008) to add clarity and ensure that the business practice standards are
consistent with NERC reliability standard IRO-006.
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    \12\ On March 12, 2009, NAESB submitted a report to the
Commission documenting its ratification of the Version 002.1
standards.
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    9. In total, NAESB's WEQ Version 002.1 business practice standards
include the following standards:
     Open Access Same-Time Information Systems (OASIS), Version
1.5 (WEQ-001);
     Open Access Same-Time Information Systems (OASIS)
Standards & Communications Protocols, Version 1.5 (WEQ-002);
     Open Access Same-Time Information Systems (OASIS) Data
Dictionary, Version 1.5 (WEQ-003);
     Coordinate Interchange (WEQ-004);
     Area Control Error (ACE) Equation Special Cases (WEQ-005);
     Manual Time Error Correction (WEQ-006);
     Inadvertent Interchange Payback (WEQ-007);
     Transmission Loading Relief--Eastern Interconnection (WEQ-
008);
     Standards of Conduct for Electric Transmission Providers
(WEQ-009);
     Contracts Related Standards (WEQ-010);
     Gas/Electric Coordination (WEQ-011);
     Public Key Infrastructure (PKI) (WEQ-012);
     Open Access Same-Time Information Systems (OASIS)
Implementation Guide, Version 1.5 (WEQ-013); and
     WEQ/WGQ eTariff Related Standards (WEQ-014).

II. Discussion

    10. We propose to incorporate by reference into the Commission's
regulations the NAESB WEQ Version 002.1 standards, with certain
exceptions.\13\ The Version 002.1

standards will update the Version 001 standards currently incorporated
by reference into the Commission's regulations.\14\
---------------------------------------------------------------------------

    \13\ We do not propose to incorporate by reference in the
Commission's regulations the following standards: Standards of
Conduct for Electric Transmission Providers (WEQ-009); Contracts
Related Standards (WEQ-010); and WEQ/WGQ eTariff Related Standards
(WEQ-014). We do not propose to incorporate WEQ-009 into the
Commission's regulations because it contains no substantive
standards and merely serves as a placeholder for future standards.
We do not propose to incorporate WEQ-010 because this standard
contains an optional NAESB contract regarding funds transfers and
the Commission does not require utilities to use such contracts. In
addition, we do not propose to incorporate WEQ-014, eTariff Related
Standards, because the Commission already has adopted standards and
protocols for electronic tariff filing based on the NAESB standards.
See Electronic Tariff Filings, 73 FR 57,515 (Oct. 3, 2008), FERC
Stats. & Regs. ] 31,276 (Sept. 19, 2008). Also, we do not propose to
incorporate NAESB's interpretation of its standards on Gas/Electric
Coordination (WEQ-011) by reference in the regulations. While
interpretations may provide useful guidance, they are not
determinative and we will not require utilities to comply with
interpretations. Lastly, as discussed more specifically in note 18,
infra, we do not propose to incorporate by reference certain
portions of WEQ-001.
    \14\ In this NOPR, the Commission is proposing to incorporate by
reference into the Commission's regulations Version 002.1 of NAESB's
business practice standards. These standards have been updated to
include all revisions to the standards since Version 001. Thus, some
of the revisions included in Version 002.1 were made from the
Version 002.0 standards and others were made from the Version 001
standards. Given that NAESB's Version 002.1 Standards represent the
most up-to-date version of NAESB's business practice standards, we
believe it is more productive for this NOPR to address this set of
standards, rather than the Version 002.0 standards. Given our
proposals in this NOPR, we do not see the need to propose any
separate action addressing NAESB's Version 002.0 standards.
Therefore, the proceeding in Docket No. RM05-5-007 is moot.
---------------------------------------------------------------------------

    11. NAESB adopted the majority of the changes in the Version 002.1
standards to support Order Nos. 890, 890-A, and 890-B, in which the
Commission addressed and remedied opportunities for undue
discrimination under the pro forma open access transmission tariff
(OATT). While many of the Version 002.1 standards simply revise or
update existing standards, some of these standards prescribe new
business practices to accommodate the reforms adopted in Order No. 890.
For example, NAESB has developed business practice and technical
standards to support conditional firm service. Additionally, NAESB
developed standards for the posting of narratives explaining changes in
available transfer capability and total transfer capability, underlying
load forecast assumptions for available transfer capability
calculations and actual peak load, as well as metrics relating to the
provision of transmission service and the completion of planning
studies. Specific additions and revisions included in the NAESB WEQ
Version 002.1 standards are discussed below.
    12. NAESB approved the Version 002.1 standards under its consensus
procedures.\15\ Adoption of consensus standards is appropriate because
the consensus process helps to ensure the reasonableness of the
standards by requiring that the standards draw support from a broad
spectrum of all segments of the industry. Moreover, since the industry
itself has to conduct business under these standards, the Commission's
regulations should reflect those standards that have the widest
possible support. In section12(d) of the National Technology Transfer
and Advancement Act of 1995 (NTT&AA), Congress affirmatively requires
federal agencies to use technical standards developed by voluntary
consensus standards organizations, like NAESB, as a means to carry out
policy objectives or activities determined by the agencies unless use
of such standards would be inconsistent with applicable law or
otherwise impractical.\16\
---------------------------------------------------------------------------

    \15\ See P 4 supra.
    \16\ Pub L. No. 104-113, 12(d), 110 Stat. 775 (1996), 15 U.S.C.
272 note (1997).
---------------------------------------------------------------------------

    13. We propose that, once the Commission incorporates these
standards by reference into its regulations, public utilities must
implement these standards even before they have updated their tariffs
to incorporate these changes. The Commission is also proposing,
consistent with our regulation at 18 CFR 35.28(c)(1)(vii), to require
each public utility to revise its OATT to include the Version 002.1 WEQ
standards that we are proposing to incorporate by reference herein. For
standards that do not require implementing tariff provisions, the
Commission is proposing to permit the public utility to incorporate the
WEQ standard by reference in its OATT. We are not, however, proposing
to require a separate tariff filing to accomplish this change.
Consistent with our prior practice, we are proposing to give public
utilities the option of including these changes as part of an unrelated
tariff filing.\17\
---------------------------------------------------------------------------

    \17\ See Order No. 676, P 100.
---------------------------------------------------------------------------

A. OASIS Standards

    14. In the NAESB WEQ Version 002.1 standards, NAESB has developed
new standards and revised existing standards relating to OASIS to
ensure consistency with certain policies articulated by the Commission
in Order Nos. 890, 890-A and 890-B. A number of standards that the
Commission directed transmission providers to develop have been
included by WEQ in the Version 002.1 OASIS Standards, which include:
(1) Open Access Same-Time Information Systems (OASIS), Version 1.5
(WEQ-001); (2) Open Access Same-Time Information Systems (OASIS)
Standards & Communication Protocols, Version 1.5 (WEQ-002); (3) Open
Access Same-Time Information Systems (OASIS) Data Dictionary, Version
1.5 (WEQ-003); and (4) Open Access Same-Time Information Systems
(OASIS) Implementation Guide, Version 1.5 (WEQ-013). In addition,
NAESB's WEQ Version 002.1 standards include various minor revisions to
the OASIS Standards.
    15. In this NOPR, we propose to incorporate by reference into the
Commission's regulations the Version 002.1 OASIS Standards (i.e., WEQ-
001, WEQ-002, WEQ-003, and WEQ-013), with certain exceptions.\18\
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    \18\ Consistent with the Commission's determination in Order
Nos. 676 and 676-C, we are not proposing to incorporate by reference
Standards 001-0.1, 001-0.9 through 001-0.13, and 001-1.0 through
001-1.8 because these standards merely restate Commission
regulations and Standard 001-9.7 because it is not consistent with
the Commission's policy on redirects. Order No. 676, P 51 & n.40.
---------------------------------------------------------------------------

    16. We note that Standard 001-13.1.2, which requires the posting of
Standards of Conduct-related information, contains references to
various Commission regulations that were subsequently revised in Order
No. 717.\19\ Thus, these references are no longer accurate and the
information required to be posted by this standard does not conform, in
some instances, to the Commission's current requirements. We understand
that NAESB is working on making a revision to this standard. Because
the standard contains posting requirements that are still applicable,
we propose to incorporate this standard by reference. However, we
clarify that, until we adopt a revised standard, we do not propose to
require public utilities to comply with any portion of the standard
that requires information to be posted in a manner inconsistent with
Order No. 717.
---------------------------------------------------------------------------

    \19\ Standards of Conduct for Transmission Providers, Order No.
717, 73 FR 63,796 (Oct. 27, 2008), FERC Stats. & Regs ] 31,280
(2008), reh'g pending.
---------------------------------------------------------------------------

1. Conditional Firm Service
    17. In the OASIS Standards, NAESB has included a number of
standards that support conditional firm service as envisioned by the
Commission in Order Nos. 890 and 890-A. NAESB has developed business
practice standards to facilitate the implementation of conditional firm
service, relying on the Commission's description of the attributes of
that service in Order No. 890.\20\ Specifically, NAESB developed
Standards 001-21 through 001-21.5.5 on the Conditional Curtailment
Option, the term that NAESB uses to describe conditional firm service.
These standards address: (1) The limitations and conditions under which
the Conditional Curtailment Option is offered; (2) the posting
requirements for information concerning a Conditional Curtailment
Option reservation and its curtailment criteria; (3) the process for
performing the biennial reassessment; (4) the curtailment of a
Conditional Curtailment Option reservation; and (5) the redirect,
transfer, and resale of a Conditional Curtailment Option reservation.
---------------------------------------------------------------------------

    \20\ Order No. 890, P 1043-47.

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

    18. Additionally, NAESB has developed other standards related to
conditional firm service in response to the Commission's requests for
the development of specific standards in Order Nos. 890 and 890-A.\21\
Specifically, NAESB has developed Standard 001-21.1.6, which requires
that transmission providers offer short-term firm service to
conditional firm customers as capacity (that would alleviate the
constraints associated with a Conditional Curtailment Option
reservation) becomes available. In response to Order No. 890-A, NAESB
has created and modified standards in WEQ-001, Appendix C to WEQ-001,
WEQ-002, WEQ-003, WEQ-008 and WEQ-013, to provide a consistent set of
tracking capabilities and business practices for tagging, as a means to
implement conditional firm service.
---------------------------------------------------------------------------

    \21\ Order No. 890, P 1078; Order No. 890-A, P 592.
---------------------------------------------------------------------------

2. Available Transfer Capability
    19. NAESB developed several standards related to available transfer
capability in response to Order No. 890. First, NAESB modified WEQ-001
to support the transparency reporting and related functions required by
Order No. 890. Second, in response to the available transfer capability
related posting requirements established by the Commission in Order No.
890, NAESB has developed business practice standards in WEQ-001
(including Standards 001-14, 001-15, 001-17, 001-18, 001-19, 001-20 and
Appendix D), WEQ-002, WEQ-003 and WEQ-013 (including Appendices A and
B).\22\
---------------------------------------------------------------------------

    \22\ Order No. 890, P 369 and 371.
---------------------------------------------------------------------------

    20. Standard 001-14 is designed to meet the requirement in Order
No. 890 for transmission providers to post a narrative with regard to
monthly or yearly available transfer capability values in instances
when available transfer capability remains unchanged at a value of zero
for six months or longer.\23\ Standard 001-15 is designed to meet the
requirement in Order No. 890 for transmission providers to post a
brief, but specific, narrative explanation of the reason for a change
in monthly and yearly available transfer capability values on a
constrained path when a monthly or yearly available transfer capability
value changes as a result of a 10 percent change in total transfer
capability. This standard requires the narrative explanation to include
the specific events that gave rise to the change and the new values for
available transfer capability on that path.\24\
---------------------------------------------------------------------------

    \23\ Id. P 371.
    \24\ Id. P 369.
---------------------------------------------------------------------------

    21. Standard 001-16.1 requires Transmission Providers to respond to
questions about the methodology for calculating available transfer
capability and available flowgate capability. We interpret this
standard as requiring the Transmission Provider to provide data when
necessary to respond to the methodology questions in order to be
consistent with the requirement in Order No. 890 that transmission
providers must, upon request, ``make available all data used to
calculate [available transfer capability] and [total transfer
capability] for any constrained paths and any system planning studies
or specific network impact studies performed for customers.''\25\
---------------------------------------------------------------------------

    \25\ Order No. 890, P 348.
---------------------------------------------------------------------------

    22. Standard 001-17 governs the posting of the underlying load
forecast assumptions used by transmission providers to calculate
available transfer capability and, on a daily basis, their actual daily
peak load for the prior day.\26\
---------------------------------------------------------------------------

    \26\ Id. P 413.
---------------------------------------------------------------------------

    23. Another standard developed by NAESB in response to Order No.
890 is Standard 001-18, which relates to postbacks of capacity to
available transfer capability. In Order No. 890, the Commission
directed public utilities, working through NERC, to modify available
transfer capability related standards to require transmission providers
to account for postbacks of redirected services and counterflows in
their non-firm available transfer capability calculations.\27\ In
coordination with NERC, NAESB concluded that a business practice
standard addressing counterflows was unnecessary because NERC had
addressed it in the reliability standards, but that the postback issue
necessitated the creation of a related business practice standard.
Thus, NAESB developed Standard 001-18 and a related Appendix D to WEQ-
001 to account for postbacks of capacity to available transfer
capability.
---------------------------------------------------------------------------

    \27\ Id. P 212.
---------------------------------------------------------------------------

    24. Also in response to Order No. 890,\28\ NAESB has developed
standards that establish a consistent approach for determining the
amount of transfer capability that a transmission provider can set
aside for its native load and other committed uses. Specifically,
Standard 001-19 addresses grandfathered agreements and Standard 001-20
addresses rollover rights. Furthermore, NAESB has developed business
practice standards that complement NERC's reliability standards for
existing transmission commitments. These standards appear in WEQ-001,
WEQ-003, and WEQ-013.
---------------------------------------------------------------------------

    \28\ Id. P 243.
---------------------------------------------------------------------------

    25. One of the Commission's objectives in Order No. 890 was to
reduce the potential for transmission providers to unduly discriminate
when they provide transmission service by limiting their discretion to
calculate available transfer capability using unknown assumptions and
methodologies.\29\ For this reason, the Commission found that ``all
[Available Transfer Capability] components (i.e., [total transfer
capability], [existing transmission commitments], [capacity benefit
margin], and [transmission reliability margin]) and certain data
inputs, data exchange, and assumptions be consistent and that the
number of industry-wide ATC calculation formulas be few in number,
transparent and produce equivalent results.''\30\
---------------------------------------------------------------------------

    \29\ The Commission reasoned that the potential for
discrimination does not lie primarily in the choice of an available
transfer capability calculation methodology, but rather in the
consistent application of its components. Id. P 208.
    \30\ Order No. 890, P 207.
---------------------------------------------------------------------------

    26. The standards establish a mechanism for posting available
transfer capacity for grandfathered agreements. The standards, however,
provide for a different approach to posting grandfathered agreements
using the Flowgate Methodology. Under Standard 001-19.1, transmission
providers using the other available transfer capability calculation
methodologies must post the aggregate MW value for the grandfathered
agreements and such data must be posted so that it can be viewed and
queried using the systemdata template. Standard 1-19.1.2 provides an
exception for transmission providers using the Flowgate Methodology
from the requirement to post an aggregate MW value that can be viewed
and queried using the systemdata template. Instead, it requires that
the transmission provider must post a list of Grandfathered Agreements
with MW values that are expected to be scheduled or expected to flow.
The standards, therefore, permit transmission providers using Available
Transfer Capability (ATC) calculation methodologies other than the
Flowgate Methodology to post less detailed information concerning
grandfathered agreements than those using the Flowgate Methodology, but
information concerning grandfathered agreements posted by those using
the Flowgate Methodology is not accessible through the systemdata
template.
3. ATC Information Link
    27. The WEQ Version 002.1 standards establish the procedure for
input of total transfer capability and available transfer

capability methodologies and values to be used by public utilities in
calculating their total transfer capability and available transfer
capability. NAESB developed these business practice standards in close
coordination with the NERC available transfer capability drafting team.
Furthermore, NERC and NAESB determined that the standards contained in
NERC MOD-003 were better classified as business practice standards than
reliability standards. As a result, NAESB developed Standard 001-
13.1.5, which provides for an ATC Information Link on OASIS. This
standard requires that Transmission Providers post several links on the
ATC Information Link, including links to their Available Transfer
Capability Implementation Document (as specified in NERC reliability
standard MOD-001-1), Capacity Benefit Margin Implementation Document
(as specified in NERC reliability standard MOD-004-1), and Transmission
Reserve Margin Implementation Document (as specified in NERC
reliability standard MOD-008-1).\31\
---------------------------------------------------------------------------

    \31\ These three implementation documents are described in the
NERC reliability standards, which are addressed in a companion
Notice of Proposed Rulemaking being issued in Docket No. RM08-19-
000.
---------------------------------------------------------------------------

    28. Standard 001-13.1.5 provides that the posting of information on
the ATC Information Link would be ``subject to the Transmission
Provider's ability to redact certain provisions due to market, security
or reliability sensitivity concerns.'' In Order No. 890, the Commission
acknowledged that a transmission provider may require someone seeking
access to CEII materials or proprietary customer information to sign a
confidentiality agreement.\32\ We expect the provision in NAESB
Standard 001-13.1.5 for a transmission provider to redact sensitive
information from postings to be implemented by a transmission provider
subject to the OATT in a manner consistent with its obligation to make
that information available to those with a legitimate need to access
the information, subject to appropriate confidentiality
restrictions.\33\
---------------------------------------------------------------------------

    \32\ Order No. 890, P 326.
    \33\ See Order No. 890, P 403-04 (requiring the development of
standard disclosure for timely disclosure of CEII information to
those with a legitimate need for it).
---------------------------------------------------------------------------

4. Capacity Benefit Margin
    29. In addition to requiring that transmission providers include a
link to their Capacity Benefit Margin Implementation Document on the
ATC Information Link, as discussed above, the Version 002.1 standards
allow for auditing of the use of capacity benefit margin using OASIS.
This standard was developed in response to Order No. 890 and 890-A,\34\
and necessitated modifications to WEQ-001, WEQ-002, WEQ-003, and WEQ-
013. While the Commission also directed that public utilities, working
through NERC and NAESB, ``develop clear standards for how the CBM value
shall be determined, allocated across transmission paths, and used'' in
Order No. 890,\35\ the NAESB subcommittees determined that the NERC
reliability standard MOD-004 adequately addressed this directive and
therefore it was not necessary to develop any supporting NAESB business
practice standards.\36\
---------------------------------------------------------------------------

    \34\ Order No. 890, P 262 and Order No. 890-A, P 68.
    \35\ Order No. 890, P 257. See also, Order No. 890-A, P 68 and
83.
    \36\ See, NAESB Version 002.1 cover letter filed on Feb. 19,
2009 at 69.
---------------------------------------------------------------------------

    30. On March 6, 2009, NERC filed comments with the Commission
concerning Standard 004-18.2, suggesting that this Standard might be in
conflict with Requirement 12 of NERC Reliability Standard MOD-004-
1.\37\ After comparing the two standards, we do not believe that they
are in conflict. Incorporation by reference of the NAESB Standard would
not seem to relieve an entity from the independent obligation to comply
with the NERC Reliability Standard.
---------------------------------------------------------------------------

    \37\ Standard 004-18.2 states that: ``The Transmission Provider
may require the specification of a unique Transmission Reservation
Number in association with any request for use of CBM. Such
requirement shall be fully documented in the Transmission Provider's
Business Practices posted on OASIS. The TSP reserves the right to
deny any RFI requesting use of CBM if the required Transmission
Reservation Number is not specified.''
    Requirement 12 of Standard MOD-004-1 requires transmission
providers to approve, within the bounds of reliable operation, any
arranged interchange using CBM that is submitted by an energy
deficient entity under energy emergency alerts, if (1) CBM is
available, (2) an emergency alert is declared within the balancing
authority of the energy deficient entity, and (3) the energy
deficient entity is located within the transmission provider's
service area.
---------------------------------------------------------------------------

5. Performance Metrics
    31. In response to several posting requirements in Order No. 890,
NAESB developed and adopted Standard 001-13.1.3, which describes the
Performance Metrics Link that transmission providers must have on the
OASIS. Under the ``Transmission Service Requests Metrics'' link,
transmission providers are required to post the information required by
the Commission's regulations at 18 CFR 37.6(i), which includes: (1) The
number of affiliate versus non-affiliate requests for transmission
service that have been rejected; and (2) the number of affiliate versus
non-affiliate requests for transmission service that have been made.
Furthermore, this posting is required to detail the length of service
request (e.g., short-term or long-term) and the type of service
requested (e.g., firm point-to-point, non-firm point-to-point or
network service).\38\ Under the ``Transmission Study Metrics'' link,
transmission providers must post the information concerning performance
metrics relating to system impact and facilities studies \39\ required
by the Commission's regulations at 18 CFR 37.6(h). Under the
``Redispatch Cost'' link, transmission providers must post information
required by the Commission's regulations at 18 CFR 37.6(j)(2) regarding
redispatch costs. This information must include each transmission
provider's monthly average cost of redispatch for each internal
congested transmission facility or interface over which it provides
redispatch service using planning redispatch or reliability redispatch
under the pro forma OATT and a high and low redispatch cost for the
month for each of these same transmission constraints.\40\
---------------------------------------------------------------------------

    \38\ Order No. 890, P 413.
    \39\ Id. P 1318.
    \40\ Id. P 1162.
---------------------------------------------------------------------------

6. Rebid of Partial Service
    32. The WEQ Version 002.1 standards cover the rebid of partial
service across a single transmission provider's system. In response to
Order No. 890, NAESB adopted business practice standards in its Version
002.1 standards to complement the OASIS Standards and Communication
Protocol standards that it had already developed for the rebid of
partial service across a single Transmission Provider's system. These
revisions appear in the OASIS Standards.
7. Pre-Confirmed Transmission Service Requests
    33. In WEQ-001, WEQ-002 and WEQ-013, NAESB has developed business
practice standards to complement the Commission's policies regarding
pre-confirmed transmission service requests, as articulated in Order
No. 890. As required by Order No. 890, these standards ``give priority
only to pre-confirmed non-firm point-to-point transmission service
requests and short-term firm point-to-point transmission service
requests'' \41\ and provide that ``longer duration requests for
transmission service will continue to

have priority over shorter duration requests for transmission service,
with pre-confirmation serving as a tie-breaker for requests of equal
duration.'' \42\ In addition, as requested by the Commission in Order
No. 890, NAESB has developed a consensus solution to the question of
whether a transmission customer should be prohibited from changing a
request into a pre-confirmed request.\43\
---------------------------------------------------------------------------

    \41\ Id. P 1401.
    \42\ Id.
    \43\ Id. P 1392.
---------------------------------------------------------------------------

8. Ancillary Services and Demand Response
    34. NAESB amended the definitions of certain ancillary services
contained in WEQ-001 to reflect the definitions contained in the pro
forma OATT as revised by Order No. 890. These definitions describe the
types of ancillary services that are offered on OASIS. The revisions to
the definitions reflect the possible role of demand resources in the
provision of ancillary services by identifying non-generation resources
capable of providing a given ancillary service as potential providers
of the service. These modifications include revisions to Standards 001-
2.5.2 through 001-2.5.6.\44\
---------------------------------------------------------------------------

    \44\ On November 14, 2008, NAESB reported that these standards,
among others, have been approved by the WEQ Executive Committee and
ratified by the NAESB membership.
---------------------------------------------------------------------------

9. Rollover Rights
    35. In the Version 002.1 standards, NAESB has included new
standards and modifications to existing standards in WEQ-001, WEQ-003,
and WEQ-013 that relate to rollover rights. As discussed above, these
standards were developed in part as a response to Order No. 890,\45\ in
which the Commission directed public utilities, working through NERC
and NAESB, to develop standards that establish a consistent approach
for determining the amount of transfer capability that a transmission
provider can set aside for its native load and other committed uses.
However, these standards also include business practices relating to
rollover rights; for example, Standard 001-20 describes the process by
which Transmission Customers may exercise their rollover rights.\46\
The modifications to the standards relating to rollover rights that
NAESB has included in its Version 002.1 filing \47\ are the result of
only the first part of a two part process through which NAESB is
working to develop standards that are consistent with the Commission's
policy on rollover rights as described in Order Nos. 676, 890, and 890-
A.\48\
---------------------------------------------------------------------------

    \45\ Order No. 890, P 243.
    \46\ Although we have previously determined not to incorporate
Standard 001-9.7 dealing with rollover rights and redirects, we are
proposing to incorporate by reference Standard 001-9.5.3, which
refers to the not-accepted Standard 001-9.7. The reference, however,
does not affect the meaning of the Standard 001-9.5.3, and any
redirect issues are governed by the Commission's pro forma Open
Access Transmission Tariff.
    \47\ NAESB Version 002.1 cover letter filed on Feb. 19, 2009 at
7.
    \48\ NAESB reports, id., that part one of this process included
revisions it made to the definition of ``unexercised rollover
rights'' in WEQ-001, and modifications to the existing standards in
WEQ-001, WEQ-003 and WEQ-013. NAESB further reports, id., that in
part two of this process it intends to revise Standard 001-9.7 as
part of its Order No. 890 work plan, and to include this revision in
its Version 002.2 standards.
---------------------------------------------------------------------------

10. Insufficient Transfer Capacity
    36. Standard 001-4.7.1 provides the OASIS posting procedure to be
followed when there is insufficient transfer capacity to satisfy a
customer's request and partial service is either not required or is
unavailable.\49\ While we propose to incorporate this standard by
reference into our regulations, we note that it does not address or
otherwise limit other obligations that might exist under the pro forma
OATT, such as the requirement in section 15.2 to perform a System
Impact Study.\50\
---------------------------------------------------------------------------

    \49\ Standard 001-4.7.1 states: ``If the Transmission Provider
determines there is insufficient transfer capability available to
grant the Transmission Customer's request and there is no obligation
to provide Partial Service (or Partial Service is also not available
in cases where the Transmission Provider is obligated to provide
Partial Service), the Transmission Provider may respond by setting
the request status to REFUSED.''
    \50\ Section 15.2 of the pro forma OATT states that: ``In the
event sufficient transfer capability may not exist to accommodate a
service request, the Transmission Provider will respond by
performing a System Impact Study.''
---------------------------------------------------------------------------

11. Miscellaneous OASIS Standards
    37. In Order No. 890, the Commission decided that NAESB would be
the best entity to address the issue of making OASIS platforms
accessible on non-Windows/Explorer computers.\51\ NAESB has developed
standards concerning this issue as part of its OASIS Standards.
Additionally, in the Version 002.1 standards NAESB modified WEQ-002,
WEQ-003, and WEQ-013 to complement the new and revised standards
adopted in response to Order No. 890. These revisions support
annotations for available transfer capability, load forecast and actual
load, rebid of partial service, pre-confirmation priority, and
conditional firm service. NAESB also added an Appendix C to WEQ-001
that provides a list of broad based OASIS exemptions that have been
granted to specific groups in the electric industry by the Commission
through its Orders and regulations.
---------------------------------------------------------------------------

    \51\ Order No. 890, P 1392.
---------------------------------------------------------------------------

B. Business Practice Standards to Coordinate With Reliability Standards
Unrelated to Order No. 890

    38. In the Version 002.1 standards for Coordinate Interchange,
(WEQ-004), Area Control Error (ACE) Equation Special Cases (WEQ-005),
Inadvertent Interchange Payback (WEQ-007), and Transmission Loading
Relief--Eastern Interconnection (WEQ-008), NAESB has made minor
modifications to the format of the standards and has revised section
titles.
    39. In the Version 002.1 standards, NAESB added Standard 004-18 to
the Coordinate Interchange Standards (WEQ-004), which describes the
requirements for submitting a Request for Interchange that uses a
Transmission Provider's capacity benefit margin to support energy
imports into a load balancing authority area served by the Transmission
Provider. Additionally, the Version 002.1 standards include
modifications to the timing table in Appendix D of the Coordinate
Interchange Standards (WEQ-004). The NERC/NAESB Joint Interchange
Scheduling Working Group modified previous versions of this table by
dividing it into two separate tables, one that provides the timing
requirements for the Western Electricity Coordinating Council and one
that provides the timing requirements for all other interconnections.
These tables were modified to reflect time changes for Generator-
Provider Entity, Load-Serving Entity, and Purchase-Selling Entity
market assessments so that they are concurrent with the Balancing
Authority and Transmission Service Provider reliability assessments.
Also, timeline diagrams for each table were added for
clarification.\52\
---------------------------------------------------------------------------

    \52\ NAESB Version 002.1 cover letter filed on Feb. 19, 2009 at
8.
---------------------------------------------------------------------------

    40. In the Version 002.1 standards for Manual Time Error Correction
(WEQ-006), NAESB has included revisions to maintain conformance with
NERC Standard BAL-004.\53\ NAESB states that NERC recently revised
Standard BAL-004 to remove inappropriate requirements on reliability
coordinators that voluntarily agree to serve as Interconnection Time
Monitors.\54\ In

addition, NAESB has revised a section title in this standard.
---------------------------------------------------------------------------

    \53\ NAESB reports that this item was voted out of the
subcommittee on June 4, 2008, passed an Executive Committee vote on
Aug. 19, 2008, and the ratification process will complete on Sep.
22, 2008. In its supplemental report dated Nov. 14, 2008, NAESB
advised that this revision was ratified on Sep. 22, 2008.
    \54\ NERC filed Standard BAL-004-1 with the Commission for
approval in Docket Nos. RM09-13-000 and RM06-16-000 on March 12,
2009 and this filing is currently pending before the Commission.
---------------------------------------------------------------------------

    41. In the Version 002.1 standards for Transmission Loading
Relief--Eastern Interconnection (WEQ-008), NAESB made a minor
modification to a standard to accommodate conditional firm service and
the use of capacity benefit margin. Additionally, NAESB modified these
standards to clarify the intended use of the nine Transmission Loading
Relief levels addressed in the standards, and to ensure consistency
between WEQ-008 and the NERC reliability standard IRO-006, both of
which address transmission loading relief. We propose to update the
Commission's regulations to incorporate by reference Version 002.1 of
these standards.

C. Other Standards

1. Gas/Electric Coordination Standards
    42. In the Version 002.1 standards for Gas/Electric Coordination
(WEQ-011), NAESB made a minor correction to rearrange the definitions
so that they appear in alphabetical order. We propose to incorporate by
reference into the Commission's regulations Version 002.1 of this
standard.
2. Public Key Infrastructure (PKI) Standards
    43. In the Version 002.1 standards for Public Key Infrastructure
(WEQ-012), NAESB made a minor revision to the endnote. We propose to
incorporate by reference into the Commission's regulations the updated
Version 002.1 of this standard.

III. Notice of Use of Voluntary Consensus Standards

    44. Office of Management and Budget Circular A-119 (section 11)
(February 10, 1998) provides that federal agencies should publish a
request for comment in a NOPR when the agency is seeking to issue or
revise a regulation proposing to adopt a voluntary consensus standard
or a government-unique standard. In this NOPR, the Commission is
proposing to incorporate by reference a voluntary consensus standard
developed by the NAESB WEQ.

IV. Information Collection Statement

    45. The following collections of information contained in this
proposed rule have been submitted to the Office of Management and
Budget (OMB) for review under section 3507(d) of the Paperwork
Reduction Act of 1995, 44 U.S.C. 3507(d). The Commission solicits
comments on the Commission's need for this information, whether the
information will have practical utility, the accuracy of the provided
burden estimates, ways to enhance the quality, utility, and clarity of
the information to be collected, and any suggested methods for
minimizing respondents' burden, including the use of automated
information techniques. 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.
    46. The following burden estimate is based on the projected costs
for the industry to implement revisions to the WEQ Standards currently
incorporated by reference into the Commission's regulations at 18 CFR
38.2 and to implement the new standards adopted by NAESB that we
propose here to incorporate by reference.

----------------------------------------------------------------------------------------------------------------
                                                                     Number of
                 Data collection                     Number of     responses per     Hours per     Total number
                                                    respondents     respondent       response        of hours
----------------------------------------------------------------------------------------------------------------
FERC-516........................................             176               1               6            1056
FERC-717........................................             176               1              12            2112
                                                 ---------------------------------------------------------------
    Totals......................................  ..............  ..............  ..............            3168
----------------------------------------------------------------------------------------------------------------

    Total Annual Hours for Collection:
    (Reporting and Recordkeeping, (if appropriate)) = 3168 hours.
    Information Collection Costs: The Commission seeks comments on the
costs to comply with these requirements. It has projected the average
annualized cost for all respondents to be the following: \55\
---------------------------------------------------------------------------

    \55\ The total annualized costs for the information collection
is $1,172,160. This number is reached by multiplying the total hours
to prepare responses (3168) by an hourly wage estimate of $370 (a
composite estimate that includes legal, technical and support staff
rates, $250 + $95 + $25 = $370), 3168 hours x $370/hour =
$1,172,160.

------------------------------------------------------------------------
                                             FERC-516        FERC-717
------------------------------------------------------------------------
Annualized Capital/Startup Costs........        $390,720        $781,440
Annualized Costs (Operations &                       N/A
 Maintenance)...........................
                                         -------------------------------
    Total Annualized Costs..............         390,720         781,440
------------------------------------------------------------------------

    47. OMB regulations \56\ require OMB to approve certain information
collection requirements imposed by agency rule. The Commission is
submitting notification of this proposed rule to OMB. These information
collections are mandatory requirements.
---------------------------------------------------------------------------

    \56\ CFR 1320.11.
---------------------------------------------------------------------------

    Title: Standards for Business Practices and Communication Protocols
for Public Utilities (formerly Open Access Same Time Information
System) (FERC-717); Electric Rate Schedule Filings (FERC-516).
    Action: Proposed collection.
    OMB Control No.: 1902-0096 (FERC-516); 1902-0173 (FERC-717).
    Respondents: Business or other for profit, (Public Utilities--Not
applicable to small businesses).
    Frequency of Responses: One-time implementation (business
procedures, capital/start-up).
    Necessity of the Information: This proposed rule, if implemented
would supplement the changes the Commission required in Order Nos. 890,
890-A, and 890-B to require that transmission services are provided on
a basis that is just, reasonable and not unduly discriminatory. In
addition this proposed rule would upgrade the Commission's current
business practice and communication standards.

Specifically, these standards include several modifications to the
existing business practice standards as well as creating new standards
to provide additional functionality for OASIS transactions. These
practices will ensure that potential customers of open access
transmission service receive access to information that will enable
them to obtain transmission service on a non-discriminatory basis and
will assist the Commission in maintaining a safe and reliable
infrastructure. The implementation of these standards and regulations
is necessary to increase the efficiency of the wholesale electric power
grid.
    48. The information collection requirements of this proposed rule
are based on the transition from transactions being made under the
existing business practice standards to conducting such transactions
under the proposed revisions to these standards and to account for the
burden associated with the new standards the Commission proposes to
incorporate in its regulations.
    49. Internal Review: The Commission has reviewed the revised
business practice standards and has made a preliminary determination
that the proposed revisions are necessary to maintain consistency
between the business practice standards and reliability standards on
this subject. The Commission has assured itself, by means of its
internal review, that there is specific, objective support for the
burden estimate associated with the information requirements.
    50. Interested persons may obtain information on the reporting
requirements by contacting the following: Federal Energy Regulatory
Commission, Attn: Michael Miller, Office of the Executive Director, 888
First Street, NE., Washington, DC 20426, Tel:<PHONE_NUMBER>/Fax: (202)
273-0873, e-mail<EMAIL_ADDRESS>    51. Comments concerning the information collections proposed in
this NOPR and the associated burden estimates, should be sent to the
contact listed above 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: (202)
395-7345, fax:<PHONE_NUMBER>].

V. Environmental Analysis

    52. 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.\57\ The
Commission has categorically excluded certain actions from these
requirements as not having a significant effect on the human
environment.\58\ The actions proposed here fall within categorical
exclusions in the Commission's regulations for rules that are
clarifying, corrective, or procedural, for information gathering,
analysis, and dissemination, and for sales, exchange, and
transportation of electric power that requires no construction of
facilities.\59\ Therefore, an environmental assessment is unnecessary
and has not been prepared in this NOPR.
---------------------------------------------------------------------------

    \57\ Regulations Implementing the National Environmental Policy
Act, Order No. 486, 52 FR 47,897 (Dec. 17, 1987), FERC Stats. &
Regs., Regulations Preambles ] 30,783 (1987).
    \58\ 18 CFR 380.4.
    \59\ See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(27).
---------------------------------------------------------------------------

VI. Regulatory Flexibility Act Certification

    53. The Regulatory Flexibility Act of 1980 (RFA) \60\ generally
requires a description and analysis of final rules that will have
significant economic impact on a substantial number of small entities.
The regulations proposed here impose requirements only on public
utilities, which generally are not small businesses, and, these
requirements are, in fact, designed to benefit all customers, including
small businesses.
---------------------------------------------------------------------------

    \60\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------

    54. The Commission has followed the provisions of both the RFA and
the Paperwork Reduction Act on potential impact on small business and
other small entities. Specifically, the RFA directs agencies to
consider four regulatory alternatives to be considered in a rulemaking
to lessen the impact on small entities: tiering or establishment of
different compliance or reporting requirements for small entities,
classification, consolidation, clarification or simplification of
compliance and reporting requirements, performance rather than design
standards, and exemptions. As the Commission originally stated in Order
No. 889, the OASIS regulations now known as Standards for Business
Practices and Communication Protocols for Public Utilities, apply only
to public utilities that own, operate, or control transmission
facilities subject to the Commission's jurisdiction and should a small
entity be subject to the Commission's jurisdiction, it may file for
waiver of the requirements. This is consistent with the exemption
provisions of the RFA. Accordingly, pursuant to section 605(b) of the
RFA,\61\ the Commission hereby certifies that the regulations proposed
herein will not have a significant adverse impact on a substantial
number of small entities.
---------------------------------------------------------------------------

    \61\ 5 U.S.C. 605(b).
---------------------------------------------------------------------------

VII. Comment Procedures

    55. The Commission invites interested persons to submit comments on
the matters and issues proposed in this notice to be adopted, including
any related matters or alternative proposals that commenters may wish
to discuss. Comments are due April 24, 2009. Comments must refer to
Docket No. RM05-5-013, and must include the commenter's name, the
organization they represent, if applicable, and their address. Comments
may be filed either in electronic or paper format.
    56. Comments may 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 and commenters may attach
additional files with supporting information in certain other file
formats. Commenters filing electronically do not need to make a paper
filing. Commenters that are not able to file comments electronically
must send an original and 14 copies of their comments to: Federal
Energy Regulatory Commission, Secretary of the Commission, 888 First
Street, NE., Washington, DC 20426.
    57. 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.

VIII. Document Availability

    58. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
Internet through FERC's Home Page (http://www.ferc.gov) and in FERC's
Public Reference Room during normal business hours (8:30 a.m. to 5 p.m.
Eastern time) at 888 First Street, NE., Room 2A, Washington, DC 20426.
    59. From FERC's Home Page on the Internet, this information is
available in the eLibrary. The full text of this document is available
in the eLibrary both in PDF and Microsoft Word format for viewing,
printing, and/or downloading. To access this document in eLibrary, type
the docket number

excluding the last three digits of this document in the docket number
field.\62\
---------------------------------------------------------------------------

    \62\ NAESB's August 29, 2008 submittal is also available for
viewing in eLibrary. The link to this file is as follows: http://
elibrary.ferc.gov/idmws/common/opennat.asp?fileID=11793503.
---------------------------------------------------------------------------

    60. User assistance is available for eLibrary and the FERC's web
site during our normal business hours. For assistance contact FERC
Online Support at<EMAIL_ADDRESS>or toll-free at (866) 208-
3676, or for TTY, contact<PHONE_NUMBER>.

List of Subjects in 18 CFR Part 38

    Conflict of interests, Electric power plants, Electric utilities,
Incorporation by reference, Reporting and recordkeeping requirements.

    By direction of the Commission.
Kimberly D. Bose,
Secretary.
    In consideration of the foregoing, the Commission proposes to amend
Chapter I, Title 18, part 38 of the Code of Federal Regulations, as
follows:

PART 38--BUSINESS PRACTICE STANDARDS AND COMMUNICATION PROTOCOLS
FOR PUBLIC UTILITIES

    1. The authority citation for part 38 continues to read as follows:

    Authority: 16 U.S.C. 791-825r, 2601-2645; 31 U.S.C. 9701; 42
U.S.C. 7101-7352.

    2. In Sec.  38.2, paragraphs (a)(1) through (11) are revised to
read as follows:

Sec.  38.2  Incorporation by reference of North American Energy
Standards Board Wholesale Electric Quadrant standards

    (a) * * *
    (1) Open Access Same-Time Information Systems (OASIS), Version 1.5
(WEQ-001, Version 002.1, March 11, 2009) with the exception of
Standards 001-0.1, 001-0.9 through 001-0.13, 001-1.0 through 001-1.8,
and 001-9.7;
    (2) Open Access Same-Time Information Systems (OASIS) Standards &
Communication Protocols, Version 1.5 (WEQ-002, Version 002.1, March 11,
2009);
    (3) Open Access Same-Time Information Systems (OASIS) Data
Dictionary, Version 1.5 (WEQ-003, Version 002.1, March 11, 2009);
    (4) Coordinate Interchange (WEQ-004, Version 002.1, March 11,
2009);
    (5) Area Control Error (ACE) Equation Special Cases (WEQ-005,
Version 002.1, March 11, 2009);
    (6) Manual Time Error Correction (WEQ-006, Version 002.1, March 11,
2009);
    (7) Inadvertent Interchange Payback (WEQ-007, Version 002.1, March
11, 2009);
    (8) Transmission Loading Relief--Eastern Interconnection (WEQ-008,
Version 002.1, March 11, 2009);
    (9) Gas/Electric Coordination (WEQ-011, Version 002.1, March 11,
2009);
    (10) Public Key Infrastructure (PKI) (WEQ-012, Version 002.1, March
11, 2009); and
    (11) Open Access Same-Time Information Systems (OASIS)
Implementation Guide, Version 1.5 (WEQ-013, Version 002.1, March 11,
2009).
* * * * *
 [FR Doc. E9-6504 Filed 3-24-09; 8:45 am]

BILLING CODE 6717-01-P