[Federal Register Volume 85, Number 207 (Monday, October 26, 2020)]
[Proposed Rules]
[Pages 67692-67694]
[FR Doc No: 2020-23466]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2020-0920; Project Identifier AD-2020-00662-R]
RIN 2120-AA64

Airworthiness Directives; Sikorsky Aircraft and Sikorsky Aircraft
Corporation Helicopters

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The FAA proposes to adopt a new airworthiness directive (AD)
for all Sikorsky Aircraft Model S-61L, S-61N, S-61NM, and S-61R
helicopters and Sikorsky Aircraft Corporation Model S-61A, S-61D, S-
61E, and S-61V restricted category helicopters. This proposed AD was
prompted by the manufacturer determining that there may be arm
assemblies in service that have accumulated 15,000 or more hours time-
in-service (TIS), which exceeds the service life limit for this
component. This proposed AD would require reviewing the mixer unit
component log card or equivalent record and, depending on the number of
hours TIS, calculating the remaining life of the arm assembly or
removing the arm assembly from service. The FAA is proposing this AD to
address the unsafe condition on these products.

DATES: The FAA must receive comments on this proposed AD by December
10, 2020.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590.
     Hand Delivery: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    For service information identified in this NPRM, contact Sikorsky
Aircraft Corporation, 6900 Main Street, P.O. Box 9729, Stratford, CT
06615; phone:<PHONE_NUMBER>. You may view this service information at
the FAA, Office of the Regional Counsel, Southwest Region, 10101
Hillwood Pkwy., Room 6N-321, Fort Worth, TX 76177. For information on
the availability of this material at the FAA, call<PHONE_NUMBER>.

Examining the AD Docket

    You may examine the AD docket on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2020-
0920; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this NPRM, any comments received, and other information. The street
address for Docket Operations is listed above.

FOR FURTHER INFORMATION CONTACT: Neil Doh, Aerospace Engineer, Boston
ACO Branch, FAA, 1200 District Avenue, Burlington, MA 01803; phone:
781-238-7757; fax:<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Comments Invited

    The FAA invites you to send any written relevant data, views, or
arguments about this proposal. Send your comments to an address listed
under the ADDRESSES section. Include ``Docket No. FAA-2020-0920;
Project Identifier AD-2020-00662-R'' at the beginning of your comments.
The most helpful comments reference a specific portion of the proposal,
explain the reason for any recommended change, and include supporting
data. The FAA will consider all comments received by the closing date
and may amend this NPRM because of those comments.
    Except for Confidential Business Information as described in the
following paragraph, and other information as described in 14 CFR
11.35, the FAA will post all comments received, without change, to
https://www.regulations.gov, including any personal information you
provide. The agency will also post a report summarizing each
substantive verbal contact received about this proposal.

Confidential Business Information

    Confidential Business Information (CBI) is commercial or financial
information that is both customarily and actually treated as private by
its owner. Under the Freedom of Information Act (FOIA) (5 U.S.C. 552),
CBI is exempt from public disclosure. If your comments responsive to
this NPRM contain commercial or financial information that is
customarily treated as private, that you actually treat as private, and
that is relevant or responsive to this NPRM, it is important that you
clearly designate the submitted comments as CBI. Please mark each page
of your submission containing CBI as ``PROPIN.'' The FAA will treat
such marked submissions as confidential under the FOIA, and they will
not be placed in the public docket of this NPRM. Submissions containing
CBI should be sent to Neil Doh, Aerospace Engineer, Boston ACO Branch,
FAA, 1200 District Avenue, Burlington, MA 01803. Any commentary that
the FAA receives which is not specifically designated as CBI will be
placed in the public docket for this rulemaking.

Background

    The FAA proposes to adopt a new AD for Sikorsky Aircraft Model S-
61L, S-61N, S-61NM, and S-61R helicopters and Sikorsky Aircraft
Corporation Model S-61A, S-61D, S-61E, and S-61V restricted category
helicopters, with an arm assembly, part number S6140-62614-009,
installed. The FAA learned from Sikorsky Aircraft Corporation that
Sikorsky S-61 Helicopter Alert Service Bulletin (ASB) 61B General-1,
Revision No. Z, dated November 13, 2018, which is applicable to
Sikorsky Model S-61L, S-61N, S-61NM, and S-61R helicopters, failed to
include the life limit of the redesigned arm assembly. As a result,
Sikorsky Aircraft Corporation determined that there may be arm
assemblies in service with 15,000 or more hours TIS, which exceeds the
service life limit for this component. The proposed actions are
intended to prevent an arm assembly from remaining in service beyond
its life limit. This condition, if not addressed, could result in
reduced or loss of tail rotor control and reduced control of the
helicopter.

FAA's Determination

    The FAA is issuing this NPRM because the agency has determined that
the unsafe condition described previously is likely to exist or develop
in other products of the same type design.

Related Service Information Under 1 CFR Part 51

    The FAA reviewed Sikorsky S-61 Helicopter ASB 61B40-11, Basic
Issue, dated March 2, 2020 (``the ASB''). The ASB describes procedures
for a one-time inspection of the mixer unit component log card to
verify the arm assembly life limit and, if the life limit has been
exceeded, to replace the arm assembly for Sikorsky Model S-61L, S-61N,
and S-61NM helicopters. This service information is reasonably
available because the interested parties have access to it through
their normal course of business or by the means identified in the
ADDRESSES section.

Other Related Service Information

    The FAA reviewed Sikorsky S-61 Helicopter ASB 61B General-1,
Revision AA, dated February 24, 2020. This service information
summarizes and lists parts with mandatory retirement times and
inspections for Sikorsky Model S-61L, S-61N, and S-61NM helicopters.

Proposed AD Requirements in This NPRM

    This proposed AD would require reviewing the mixer unit component
log card or equivalent record and, depending on the hours time-in-
service of the arm assembly, calculating the remaining life of the arm
assembly or removing the arm assembly from service.

Differences Between This Proposed AD and the Service Information

    The ASB is effective only for Sikorsky Aircraft Model S-61L, S-61N,
and S-61NM helicopters. In addition to these helicopters, the
applicability of this proposed AD also includes Sikorsky Aircraft Model
S-61R helicopters and Sikorsky Aircraft Corporation Model S-61A, S-61D,
S-61E, and S-61V restricted category helicopters. The FAA is proposing
to expand the applicability to prevent the installation of arm
assemblies that have exceeded their life limits on helicopters with a
similar type design as those helicopters affected by the ASB.

Costs of Compliance

    The FAA estimates that this AD, as proposed, would affect 13
helicopters of U.S. registry.
    The FAA estimates the following costs to comply with this proposed
AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per      Cost on U.S.
               Action                         Labor cost            Parts cost        product        operators
----------------------------------------------------------------------------------------------------------------
Review mixer unit component log or   1 work-hour x $85 per hour               $0             $85          $1,105
 equivalent record.                   = $85.
----------------------------------------------------------------------------------------------------------------

    The FAA estimates the following costs to do any necessary log entry
or replacement that would be required based on the results of the
proposed mixer unit component log or equivalent record review. The FAA
has no way of determining the number of helicopters that might need
this log entry or replacement:

                                               On-Condition Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per
                   Action                                 Labor cost                Parts cost        product
----------------------------------------------------------------------------------------------------------------
Add arm assembly entry and determine         1 work-hour x $85 per hour = $85...              $0             $85
 remaining life.
Replace arm assembly.......................  9 work-hours x $85 per hour = $765.           5,035           5,800
----------------------------------------------------------------------------------------------------------------

    According to the manufacturer, some of the costs of this proposed
AD may be covered under warranty, thereby reducing the cost impact on
affected individuals. The FAA does not control warranty coverage for
affected individuals. As a result, the FAA has included all costs in
the cost estimate.

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. Subtitle VII: Aviation Programs,
describes in more detail the scope of the Agency's authority.
    The FAA is issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701: General requirements.
Under that section, Congress charges the FAA with promoting safe flight
of civil aircraft in air commerce by prescribing regulations for
practices, methods, and procedures the Administrator finds necessary
for safety in air commerce. This regulation is within the scope of that
authority because it addresses an unsafe condition that is likely to
exist or develop on products identified in this rulemaking action.

Regulatory Findings

    The FAA determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect 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.
    For the reasons discussed above, I certify this proposed
regulation:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Will not affect intrastate aviation in Alaska, and
    (3) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Incorporation by
reference, Safety.

The Proposed Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA proposes to amend 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

0
1. The authority citation for part 39 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701.

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by adding the following new airworthiness
directive (AD):

Sikorsky Aircraft and Sikorsky Aircraft Corporation: Docket No. FAA-
2020-0920; Project Identifier AD-2020-00662-R.

(a) Comments Due Date

    The FAA must receive comments by December 10, 2020.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to Sikorsky Aircraft Model S-61L, S-61N, S-61NM,
and S-61R helicopters and Sikorsky Aircraft Corporation

Model S-61A, S-61D, S-61E, and S-61V helicopters, certificated in
any category including restricted, with an arm assembly, part number
S6140-62614-009, installed.

(d) Subject

    Joint Aircraft System Component (JASC) Code 6720, Tail Rotor
Control System.

(e) Unsafe Condition

    This AD was prompted by the manufacturer determining that there
may be arm assemblies in service with 15,000 or more hours time-in-
service (TIS), which exceeds the life limit for this component. The
FAA is issuing this AD to prevent reduced or loss of tail rotor
control. This unsafe condition, if not addressed, could result in
reduced control of the helicopter.

(f) Compliance

    Comply with this AD within the compliance times specified,
unless already done.

(g) Required Action

    (1) Within 90 days after the effective date of this AD, review
the mixer unit component log card or equivalent record to determine
if the affected arm assembly is entered with the appropriate 15,000
hours TIS life limit.
    (2) If the affected arm assembly is not included on the mixer
unit component log card or equivalent record, within 90 days after
the effective date of this AD, add the arm assembly entry to the
mixer unit component log card or equivalent record and determine the
remaining life of the arm assembly using the Accomplishment
Instructions, Section 3.A.(3) of Sikorsky S-61 Helicopter Alert
Service Bulletin (ASB) 61B40-11, Basic Issue, dated March 2, 2020
(``the ASB'').
    (3) If, based on the review required by paragraphs (g)(1) and
(2) of this AD, the arm assembly has accumulated 15,000 or more
hours TIS, before further flight, remove the arm assembly from
service. If the hours TIS for the affected arm assembly cannot be
determined, before further flight, remove the affected arm assembly
from service.
    (4) For arm assemblies that have not accumulated 15,000 or more
hours TIS, thereafter, continue to determine the remaining life of
the arm assembly and remove the arm assembly from service before it
accumulates 15,000 hours TIS.

(h) Credit for Previous Actions

    You may take credit for adding the arm assembly entry to the
mixer unit component log card or equivalent record and determining
the remaining life of the arm assembly required by paragraphs (g)(1)
and (2) of this AD if you performed these actions before the
effective date of this AD using Sikorsky S-61 Helicopter ASB 61B
General-1, Revision AA, dated February 24, 2020.

(i) Special Flight Permit

    Special flight permits, as described in Section 21.197 and
Section 21.199 of the Federal Aviation Regulations (14 CFR 21.197
and 21.199), are subject to the requirements of paragraph (g)(3) of
this AD. Operators who are prohibited from further flight due to
exceeding the life limit in paragraph (g)(3) of this AD, may only
perform a maintenance check or a one-time ferry flight to a location
where the affected arm assembly can be removed from service. This
ferry flight must be performed with only essential flight crew.

(j) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Boston ACO Branch, FAA, has the authority to
approve AMOCs for this AD, if requested using the procedures found
in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request
to your principal inspector or local Flight Standards District
Office, as appropriate. If sending information directly to the
manager of the certification office, send it to the attention of the
person identified in paragraph (k)(1) of this AD.
    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.

(k) Related Information

    (1) For more information about this AD, contact Neil Doh,
Aerospace Engineer, Boston ACO Branch, FAA, 1200 District Avenue,
Burlington, MA 01803; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>    (2) For service information identified in this AD, contact
Sikorsky Aircraft Corporation, 6900 Main Street, P.O. Box 9729,
Stratford, CT 06615; phone:<PHONE_NUMBER>. You may view this
referenced service information at the FAA, Office of the Regional
Counsel, Southwest Region, 10101 Hillwood Pkwy., Room 6N-321, Fort
Worth, TX 76177. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>.

    Issued on October 14, 2020.
Lance T. Gant,
Director, Compliance & Airworthiness Division, Aircraft Certification
Service.
[FR Doc. 2020-23466 Filed 10-23-20; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 88, Number 112 (Monday, June 12, 2023)]
[Notices]
[Page 38042]
[FR Doc No: 2023-12467]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RM98-1-000]

Records Governing Off-the-Record Communications; Public Notice

    This constitutes notice, in accordance with 18 CFR 385.2201(b), of
the receipt of prohibited and exempt off-the-record communications.
    Order No. 607 (64 FR 51222, September 22, 1999) requires Commission
decisional employees, who make or receive a prohibited or exempt off-
the-record communication relevant to the merits of a contested
proceeding, to deliver to the Secretary of the Commission, a copy of
the communication, if written, or a summary of the substance of any
oral communication.
    Prohibited communications are included in a public, non-decisional
file associated with, but not a part of, the decisional record of the
proceeding. Unless the Commission determines that the prohibited
communication and any responses thereto should become a part of the
decisional record, the prohibited off-the-record communication will not
be considered by the Commission in reaching its decision. Parties to a
proceeding may seek the opportunity to respond to any facts or
contentions made in a prohibited off-the-record communication and may
request that the Commission place the prohibited communication and
responses thereto in the decisional record. The Commission will grant
such a request only when it determines that fairness so requires. Any
person identified below as having made a prohibited off-the-record
communication shall serve the document on all parties listed on the
official service list for the applicable proceeding in accordance with
Rule 2010, 18 CFR 385.2010.
    Exempt off-the-record communications are included in the decisional
record of the proceeding, unless the communication was with a
cooperating agency as described by 40 CFR 1501.6, made under 18 CFR
385.2201(e)(1)(v).
    The following is a list of off-the-record communications recently
received by the Secretary of the Commission. This filing may be viewed
on the Commission's website at http://www.ferc.gov using the eLibrary
link. Enter the docket number, excluding the last three digits, in the
docket number field to access the document. For assistance, please
contact FERC Online Support at [email protected] or toll free
at<PHONE_NUMBER>, or for TTY, contact<PHONE_NUMBER>.
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    \1\ Email comments dated 5/20/23 from Christopher Brummer.
    \2\ Emailed comments from Michael Lebednik and 280 others.

------------------------------------------------------------------------
                                                        Presenter or
            Docket Nos.                File date          requester
------------------------------------------------------------------------
Prohibited:
    1. CP20-55-000................        6-2-2023  FERC Staff.\1\
    2. ER23-1435-000..............        6-5-2023  FERC Staff.\2\
Exempt:
    NONE.
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    Dated: June 6, 2023.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2023-12467 Filed 6-9-23; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 85, Number 231 (Tuesday, December 1, 2020)]
[Notices]
[Pages 77337-77338]
[FR Doc No: 2020-26423]

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

[Docket No. FRA-2020-0027-N-21]

Proposed Agency Information Collection Activities; Comment
Request

AGENCY: Federal Railroad Administration (FRA), Department of
Transportation (DOT).

ACTION: Notice of information collection; request for comment.

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SUMMARY: Under the Paperwork Reduction Act of 1995 (PRA) and its
implementing regulations, FRA seeks approval of the Information
Collection Request (ICR) abstracted below. Before submitting this ICR
to the Office of Management and Budget (OMB) for approval, FRA is
soliciting public comment on specific aspects of the activities
identified in the ICR.

DATES: Interested persons are invited to submit comments on or before
February 1, 2021.

ADDRESSES: Submit comments and recommendations for the proposed ICR to
Ms. Hodan Wells, Information Collection Clearance Officer, at email:
<EMAIL_ADDRESS>or telephone:<PHONE_NUMBER>. Please refer to the
assigned OMB control number in any correspondence submitted. FRA will
summarize comments received in response to this notice in a subsequent
notice and include them in its information collection submission to OMB
for approval.

SUPPLEMENTARY INFORMATION: The PRA, 44 U.S.C. 3501-3520, and its
implementing regulations, 5 CFR part 1320, require Federal agencies to
provide 60-days' notice to the public to allow comment on information
collection activities before seeking OMB approval of the activities.
See 44 U.S.C. 3506, 3507; 5 CFR 1320.8 through 1320.12. Specifically,
FRA invites interested parties to comment on the following ICR
regarding: (1) Whether the information collection activities are
necessary for FRA to properly execute its functions, including whether
the activities will have practical utility; (2) the accuracy of FRA's
estimates of the burden of the information collection activities,
including the validity of the

methodology and assumptions used to determine the estimates; (3) ways
for FRA to enhance the quality, utility, and clarity of the information
being collected; and (4) ways for FRA to minimize the burden of
information collection activities on the public, including the use of
automated collection techniques or other forms of information
technology. See 44 U.S.C. 3506(c)(2)(A); 5 CFR 1320.8(d)(1).
    FRA believes that soliciting public comment may reduce the
administrative and paperwork burdens associated with the collection of
information that Federal regulations mandate. In summary, FRA reasons
that comments received will advance three objectives: (1) Reduce
reporting burdens; (2) organize information collection requirements in
a ``user-friendly'' format to improve the use of such information; and
(3) accurately assess the resources expended to retrieve and produce
information requested. See 44 U.S.C. 3501.
    The summary below describes the ICR that FRA will submit for OMB
clearance as the PRA requires:
    Title: Federal Railroad Administration Alleged Violation and
Inquiry Form.\1\
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    \1\ FRA is revising the title of OMB Control Number 2130-0590
(formerly titled ``Alleged Violation Reporting Form'').
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    OMB Control Number: 2130-0590.
    Abstract: The FRA Alleged Violation and Inquiry Form is a response
to section 307(b) of the Rail Safety Improvement Act of 2008, which
requires FRA to ``provide a mechanism for the public to submit written
reports of potential violations of Federal railroad safety and
hazardous materials transportation laws, regulations, and orders to the
Federal Railroad Administration.'' The FRA Alleged Violation and
Inquiry Form allows the public to submit alleged violations,
complaints, or inquiries directly to FRA. The form allows FRA to
collect information necessary to investigate the alleged violation,
complaint, or inquiry, and to follow up with the submitting party. FRA
may share the information collected with partnering State departments
of transportation and law enforcement agencies.
    FRA will use the information collected under the form to identify
problem areas and take necessary action to prevent potential accidents
of the type indicated by the information submitted from occurring.
    FRA's proposed revisions to the form include: (1) Adding several
dropdown menus for form elements (e.g., type, title, preferred method
of contact, position, category of submission, date, time, city, state,
and entity involved) so that users can quickly provide complete contact
and incident information while having to hand-enter less information;
(2) adding a question requesting the users identify if they are members
of the public, a railroad employee, or other; and (3) informing users
that they will receive an automated response from FRA after the form is
submitted. The revisions are designed to make the existing form easier
to use and more understandable, and to simplify the collection of
information. The revised form will ensure that users provide the
necessary information so that FRA staff can review and respond more
quickly. The revised form also will facilitate FRA's ability to
maintain the data collected in a more useful and uniform manner, as the
new dropdown boxes will assist FRA in receiving more standardized
responses.
    Type of Request: Revision of a currently approved information
collection.
    Affected Public: Public.
    Form(s): FRA F 6180.151.
    Respondent Universe: Public.
    Frequency of Submission: On occasion.
    Reporting Burden:

----------------------------------------------------------------------------------------------------------------
                                                   Total  annual   Average  time
       CFR section \2\            Respondent         responses     per  response   Total annual     Total cost
                                   universe           (forms)        (minutes)     burden hours   equivalent \3\
----------------------------------------------------------------------------------------------------------------
Alleged Violation and         Public............             600               7              70          $1,890
 Inquiry Form (Revised Form
 FRA F 6180.151).
----------------------------------------------------------------------------------------------------------------

    Total Estimated Annual Responses: 600.
---------------------------------------------------------------------------

    \2\ The current inventory exhibits a total burden of 48 hours
while the total burden of this notice is 70 hours. The increase in
the burden hours is due to changes made to the form and the expected
increase in annual responses. Also, totals may not add due to
rounding.
    \3\ FRA used an hourly rate of $27 for the value of the public's
time. FRA obtained this data from the Department of Labor, Bureau of
Labor Statistics.
---------------------------------------------------------------------------

    Total Estimated Annual Burden: 70 hours.
    Total Estimated Annual Burden Hour Dollar Cost Equivalent: $1,890.
    Under 44 U.S.C. 3507(a) and 5 CFR 1320.5(b) and 1320.8(b)(3)(vi),
FRA informs all interested parties that a respondent is not required to
respond to, conduct, or sponsor a collection of information that does
not display a currently valid OMB control number.

    Authority: 44 U.S.C. 3501-3520.

Brett A. Jortland,
Deputy Chief Counsel.
[FR Doc. 2020-26423 Filed 11-30-20; 8:45 am]
BILLING CODE 4910-06-P


[Federal Register Volume 86, Number 39 (Tuesday, March 2, 2021)]
[Proposed Rules]
[Pages 12132-12135]
[FR Doc No: 2020-28386]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Parts 35 and 284

[Docket No. RM20-7-000]

Safe Harbor Policy for Data Providers to Price Index Developers

AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission proposes to amend its regulations to codify the
Safe Harbor Policy established in the Commission's Policy Statement on
Natural Gas and Electric Price Indices. Under the Safe Harbor Policy,
data providers that report transactions to natural gas and electric
price index developers consistent with the procedures set forth in the
Policy Statement are afforded a rebuttable presumption that their
transaction data is accurate, timely, and submitted in good faith. The
proposed change does not modify the existing policy and is intended to
promote voluntary reporting of wholesale natural gas and electricity
transactions to price index developers by alleviating market
participant concerns that the Safe Harbor Policy is not binding on the
Commission.

DATES: Comments are due June 1, 2021.

ADDRESSES: Comments, identified by Docket No. RM20-7-000, may be filed
electronically at http://www.ferc.gov in acceptable native applications
and print-to-PDF, but not in scanned or picture format. For those
unable to file electronically, comments may be filed by mail to:
Federal Energy Regulatory Commission, Secretary of the Commission, 888
First Street NE, Washington, DC 20426. Hand-delivered comments must be
delivered to: Federal Energy Regulatory Commission, 12225 Wilkins
Avenue, Rockville, Maryland 20852. The Comment Procedures Section of
this document contains more detailed filing procedures.

FOR FURTHER INFORMATION CONTACT:
Maxwell K. Multer (technical issues), Office of Enforcement, Federal
Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426
(202) 502-6756
Evan B. Oxhorn (legal issues), Office of the General Counsel, Federal
Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426
(202) 502-8183

SUPPLEMENTARY INFORMATION:

Table of Contents

Paragraph Numbers

I. Background--3.
II. Discussion--9.
III. Environmental Analysis--13.
IV. Regulatory Flexibility Act Certification--14.
V. Comment Procedures--18.
VI. Document Availability--22.

    1. Under the Commission's regulations, a data provider (a market
participant that reports transaction data to price index developers)
must submit accurate and factual information to price index developers,
and not knowingly submit false or misleading information or omit
material information.\1\ Pursuant to the Commission's Safe Harbor
Policy, which is currently set forth in the Commission's Policy
Statement on Natural Gas and Electric Price Indices,\2\ if the data
provider can demonstrate that it has adopted and followed the standards
for reporting set forth in the Commission's Policy Statement, it will
benefit from a rebuttable presumption that it has submitted its
transactions accurately, timely, and in good faith. The Commission
proposes to codify its Safe Harbor Policy in its regulations. The
proposed change does not modify the existing policy and, together with
the proposed Revised Policy Statement that the Commission is issuing
concurrently, is intended to promote voluntary reporting of wholesale
natural gas and electricity transactions to price index developers.\3\
---------------------------------------------------------------------------

    \1\ This requirement is set forth in three regulations, 18 CFR
35.41(c), 284.288(a), and 284.403(a). Each sets forth the
requirement in identical language.
    \2\ Policy Statement on Natural Gas and Electric Price Indices,
104 FERC ] 61,121, at P 37 (Initial Policy Statement), clarified,
105 FERC ] 61,282 (2003) (2003 Clarification Order), further
clarified, 112 FERC ] 61,040 (2005) (2005 Clarification Order)
(collectively, Policy Statement).
    \3\ See Actions Regarding the Commission's Policy on Price Index
Formation and Transparency, and Indices Referenced in Natural Gas
and Electric Tariffs, 173 FERC ] 61,237 (2020).
---------------------------------------------------------------------------

    2. To codify the Safe Harbor Policy, we specifically propose to
amend 18 CFR 35.41(c), 284.288(a), and 284.403(a) of the Commission's
regulations by adding language to indicate: (1) That there will be a
rebuttable presumption of accuracy, timeliness, and good faith for data
providers who submit transactions to price index developers in a manner
consistent with the Policy Statement; and (2) that inadvertent
reporting errors by such data providers will not constitute violations
of those regulations.

I. Background

    3. Natural gas indices play a vital role in the energy industry, as
they are used to price billions of dollars of natural gas and
electricity transactions annually in both the physical and financial
markets. A natural gas index is a weighted average price derived from a
set of fixed-price \4\ natural gas transactions within distinct
geographical boundaries that market participants voluntarily report to
a price index developer.\5\
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    \4\ The term fixed-price refers to a negotiated natural gas
contract for next-day or next-month delivery, and physical basis
transactions for next-month delivery. These transaction types are
defined in the FERC Form No. 552: Annual Report of Natural Gas
Transactions (FERC Form No. 552). The FERC Form No. 552 requires
market participants that annually buy or sell more than 2.2 trillion
British Thermal Units (Btu) of physical natural gas to provide
aggregated data related to their fixed-price, physical basis, Nymex
plus and index-based transactions made in the next-day and next-
month (bidweek) markets.
    \5\ S&P Global Platts (Platts), Natural Gas Intelligence (NGI),
Argus, and Natural Gas Week are examples of price index developers.
---------------------------------------------------------------------------

    4. Natural gas indices serve as a proxy for the locational cost of
natural gas in the daily and monthly markets, as many market
participants reference index prices in their physical and financial
transactions. Interstate natural gas pipelines, Independent System
Operators (ISOs), and Regional Transmission Organizations (RTOs)
reference natural gas indices in their FERC-jurisdictional tariffs for
various terms and conditions of service. State commissions also use
natural gas indices as benchmarks when reviewing the prudence of
natural gas or electricity purchases. Finally, many natural gas
financial derivative contracts used in hedging and speculation settle
against the natural gas price indices.
    5. Given that natural gas price index developers use physical
fixed-price natural gas transactions to calculate the price of
published natural gas indices, it is important that the market for
these transactions be robust, liquid, and transparent. The Commission's
investigation into the 2000-2001 Western Energy Crisis revealed
problems in how published natural gas price indices were generated that
``facilitate[ed], rather than discourage[d], manipulation and
collusion.'' \6\ Recognizing the need to restore confidence in natural
gas price

indices, the Commission began an exhaustive analysis of these and
related issues in the form of multiple staff white papers, two
technical conferences, and a follow up staff workshop.
---------------------------------------------------------------------------

    \6\ Initial Report on Company-Specific Separate Proceedings and
Generic Reevaluations; Published Natural Gas Price Data; and Enron
Trading Strategies, Docket No. PA02-2-000, at 38 (Aug. 13, 2002).
---------------------------------------------------------------------------

    6. At the conclusion of these efforts, the Commission issued its
Policy Statement to explain what the Commission expects of natural gas
and electric price indices and under what conditions the Commission
will give industry participants safe harbor protection for good faith
reporting of transaction data to entities that develop price
indices.\7\ In particular, the Commission [created] a rebuttable
presumption that companies and individuals that report trade data to
price index developers in accordance with the standards adopted here
are doing so in good faith, and will not be investigated or subjected
to administrative penalties for inadvertent mistakes made in the course
of reporting energy transaction information.\8\ Thus, the Commission
adopted the Safe Harbor Policy for the explicit purpose of
encourag[ing] more industry participants to contribute to the formation
of price indices.\9\ Consistent with the Policy Statement, the
Commission has not investigated or imposed penalties on any companies
for inadvertent reporting errors.
---------------------------------------------------------------------------

    \7\ Initial Policy Statement, 104 FERC 61,121 at P 5.
    \8\ Id.
    \9\ Id.
---------------------------------------------------------------------------

    7. After the Policy Statement was issued, the natural gas volumes
market participants reported to price index developers increased, which
resulted in greater confidence in those indices. However, after 2010,
the estimated traded volume of fixed-price natural gas transactions
reported to price index developers began to decline significantly.\10\
FERC Form No. 552 data show that the estimated volume of fixed-price
transactions voluntarily reported to price index developers declined by
approximately 54% from 2010 until 2019.\11\ At the same time that
fixed-price reporting to price index developers decreased, the traded
volume of natural gas transactions that referenced natural gas indices,
known as index gas, increased. For example, FERC Form No. 552 data
showed that index gas increased from 69% of the traded volumes in the
U.S. physical natural gas market in 2010 to 82% in 2019. Figure 1 shows
the estimated physical natural gas volumes reported to index developers
based on FERC Form No. 552 data.
---------------------------------------------------------------------------

    \10\ Two index developers now include fixed-price transactions
from the InterContinental Exchange (ICE) to increase the liquidity
of their indices. Staff analysis of the estimated volumes reported
to index developers does not include that supplemental information
from ICE.
    \11\ The Commission must estimate the volumes reported to price
index developers on the FERC Form No. 552 because FERC Form No. 552
filers can provide aggregated data for themselves and their
affiliates, some of whom may or may not report to index developers.
Staff estimates this volume by calculating the average of the
minimum volume reported (i.e., the total volume from filers with
affiliates that all indicate that they report to price index
developers) and the maximum possible volume reported (i.e., the
total volume from filers with at least one affiliate that indicates
that it reports to price index developers).
[GRAPHIC] [TIFF OMITTED] TP02MR21.002

    8. Commission staff held a technical conference on June 29, 2017,
which addressed index liquidity and transparency issues and potential
actions the Commission could consider taking in order to increase both
the volume of transactions reported to natural gas price index
developers and the transparency of the physical natural gas price
formation process.\12\ In post technical conference comments, a number
of commenters suggested that placing the Safe Harbor Policy into the
Commission's regulations would help to provide regulatory certainty
which in turn would lead to an increase in the number of data providers
that would report their transactions to price index developers.\13\
---------------------------------------------------------------------------

    \12\ Docket No. AD17-12-000. A staff-led technical conference
addressing similar issues was held in 2003 in Docket No. AD03-7-000.
    \13\ AGA, Comments, Docket No. AD17-12-000, at 7 (filed July 31,
2017); Tenaska Comments, Docket No. AD17-12-000, at 5 (filed July
31, 2017).
---------------------------------------------------------------------------

II. Discussion

    9. The Commission proposes to revise three sections of its
regulations, 18 CFR 35.41(c), 284.288(a), and 284.403(a). Although each
of the three sections applies to different jurisdictional entities,
they set forth almost identical requirements. Section 35.41(c) applies
to persons with or seeking authorization to engage in sales for resale
of electric energy, capacity or ancillary services at market-based
rates under section 205 of the Federal Power Act. Section 284.288(a)
applies to interstate pipelines that offer transportation service under
subparts B or G of part 284. Section

284.403(a) applies to sales for resale by persons that are not
interstate pipelines. Each section currently requires that data
providers reporting transactions to price index developers provide
accurate, factual information, and not knowingly submit false or
misleading information or omit material information.
    Reporting must be performed consistent with the procedures set
forth in the Policy Statement.\14\ The regulations do not incorporate
the Safe Harbor Policy.
---------------------------------------------------------------------------

    \14\ 18 CFR 35.41(c), (Market behavior rules); see also 18 CFR
284.288(a) (Code of conduct for unbundled sales service) (identical
language); 18 CFR 284.403(a) (Code of conduct for persons holding
blanket marketing certificates) (identical language).
---------------------------------------------------------------------------

    10. Currently, the Safe Harbor Policy is set forth in the Policy
Statement, which advises the public about how the Commission intends to
exercise its discretionary authority. The Policy Statement, however, is
non-binding.\15\ Although the Commission has never pursued enforcement
action against a market participant for inadvertent errors in reporting
transactions to price index developers, concerns nonetheless remain
among market participants that this potential exists.\16\
---------------------------------------------------------------------------

    \15\ See, e.g., Panhandle Eastern Pipe Line Co. v. FERC, 198
F.3d 266, 269 (D.C. Cir. 1999).
    \16\ See Supra P 8.
---------------------------------------------------------------------------

    11. To alleviate these concerns and encourage voluntary reporting
in order to promote more robust, liquid, and transparent indices, we
propose to add identical language to 18 CFR 35.41(c), 284.288(a), and
284.403(a) to incorporate the Safe Harbor Policy into the regulatory
text. This proposed language states that ``[f]or a Seller who reports
in a manner consistent with procedures set forth in the Policy
Statement, there will be a rebuttable presumption that information
submitted to publishers of electricity or natural gas indices is
accurate, timely, and submitted in good faith.'' The proposed revisions
also state that ``[i]nadvertent reporting errors by a Seller who
reports in a manner consistent with the procedures set forth in the
Policy Statement shall not constitute violations of this provision.''
This action will eliminate any concerns that the Commission might
choose to depart from the Safe Harbor Policy as set forth in the Policy
Statement.
    12. By incorporating the Safe Harbor Policy into the Commission's
regulations, the Commission will provide certainty to the regulated
industry that, provided that the data provider reports in a manner
consistent with the Policy Statement, inadvertent errors in reporting
will not constitute violations of the Commission's regulations
requiring accurate reporting and will not give rise to civil penalties.
Under the proposed language, for data providers that report consistent
with the Policy Statement, only intentional or reckless behavior may
give rise to liability. Based on industry comments during and after the
technical conference,\17\ we believe that incorporation of the Safe
Harbor Policy into the Commission's regulations will provide greater
certainty to market participants and will lead to increased voluntary
reporting to price index developers.
---------------------------------------------------------------------------

    \17\ See, e.g., American Gas Association, Post-Technical
Conference Comments, Docket No. AD17-12-000, at 7 (filed July 31,
2017) (``. . .there is a perception that a ``fat finger'' error
could result in a party being the subject of an investigation.'');
Edison Electric Institute, Post-Technical Conference Comments,
Docket No. AD17-12-000, at 5 (filed July 31, 2017) (``Despite [the
Policy Statement], as indicated during the technical conference,
there is a perceived regulatory risk associated with transaction
reporting and a concern that it will invite costly audits and
enforcement actions even for inadvertent errors.'').
---------------------------------------------------------------------------

III. Environmental Analysis

    13. 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.\18\ The
Commission has categorically excluded certain actions from these
requirements as not having a significant effect on the human
environment.\19\ The actions proposed here fall within the categorical
exclusions in the Commission's regulations for rules that are
clarifying, corrective, or procedural, and for information gathering,
analysis, and dissemination.\20\ Therefore, an environmental assessment
is unnecessary and has not been prepared in this Notice of Proposed
Rulemaking.
---------------------------------------------------------------------------

    \18\ Regulations Implementing the National Environmental Policy
Act of 1969, Order No. 486, FERC Stats. & Regs. 30,783 (1987)
(cross-referenced at 41 FERC ] 61,284).
    \19\ 18 CFR 380.4.
    \20\ See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5).
---------------------------------------------------------------------------

IV. Regulatory Flexibility Act Certification

    14. The Regulatory Flexibility Act of 1980 (RFA) \21\ generally
requires a description and analysis of proposed rules that will have
significant economic impact on a substantial number of small entities.
The RFA does not mandate any particular outcome in a rulemaking. It
only requires consideration of alternatives that are less burdensome to
small entities and an agency explanation of why alternatives were
rejected.
---------------------------------------------------------------------------

    \21\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------

    15. The Small Business Administration (SBA) size standards for
natural gas and electric utilities are based on the number of
employees, including affiliates. Under the SBA's standards, some data
providers will fall under the following categories and associated size
thresholds: Natural Gas Distribution and Electric Power Distribution,
both at 1000 employees.\22\
---------------------------------------------------------------------------

    \22\ 13 CFR 121.201 (2020), sector 22 (Utilities), NAICS codes
221210 (Natural Gas Distribution) and 221122 (Electric Power
Distribution).
---------------------------------------------------------------------------

    16. Because data providers who choose to report their transactions
are already required to submit data consistent with the Policy
Statement in order to receive the protections of the Safe Harbor
Policy, the Commission estimates that there will be no additional
compliance burden as a result of this proposed rule.
    17. Based on the above, the Commission certifies that
implementation of the proposed rule will not have a significant impact
on a substantial number of small entities. Accordingly, no initial
regulatory flexibility analysis is required.

V. Comment Procedures

    18. 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 1, 2021. Comments must refer to
Docket No. RM20-7-000, and must include the commenter's name, the
organization they represent, if applicable, and their address.
    19. The Commission encourages comments to be filed electronically
via the eFiling link on the Commission's website 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.
    20. 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.
    21. 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.

VI. Document Availability

    22. 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). At this time,
the Commission has suspended access to the Commission's Public
Reference Room, due to the proclamation declaring a National Emergency
concerning the Novel Coronavirus Disease (COVID-19), issued by the
President on March 13, 2020.
    23. From the Commission's Home Page on the internet, this
information is available on eLibrary. The full text of this document is
available on eLibrary in PDF and Microsoft Word format for viewing,
printing, and/or downloading. To access this document in eLibrary, type
the docket number excluding the last three digits of this document in
the docket number field.
    24. User assistance is available for eLibrary and the Commission's
website 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>
List of Subjects

18 CFR Part 35

    Electric power rates, Electric utilities, Reporting and
recordkeeping requirements.

18 CFR Part 284

    Continental shelf, Natural gas, Reporting and recordkeeping
requirements.

    By direction of the Commission. Commissioner Clements is not
participating.

    Dated: December 17, 2020.
Kimberly D. Bose,
Secretary.
    In consideration of the foregoing, the Commission is proposing to
amend parts 35 and 284, chapter I, title 18, Code of Federal
Regulations, as follows.

PART 35--FILING OF RATE SCHEDULES AND TARIFFS

0
1. The authority citation for part 35 continues to read as follows:

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

0
2. Revise Sec.  35.41(c) to read as follows:

Sec.  35.41  Market behavior rules.

* * * * *
    (c) To the extent Seller engages in reporting of transactions to
publishers of electricity or natural gas indices, Seller must provide
accurate and factual information, and not knowingly submit false or
misleading information or omit material information to any such
publisher, by reporting its transactions in a manner consistent with
the procedures set forth in the Policy Statement, issued by the
Commission in Docket No. PL03-3-000 and any clarifications thereto. For
a Seller who reports in a manner consistent with procedures set forth
in the Policy Statement, there will be a rebuttable presumption that
information submitted to publishers of electricity or natural gas
indices is accurate, timely, and submitted in good faith. Inadvertent
reporting errors by a Seller who reports in a manner consistent with
the procedures set forth in the Policy Statement shall not constitute
violations of this provision. Seller must identify as part of its
Electric Quarterly Report filing requirement in Sec.  35.10b of this
chapter the publishers of electricity and natural gas indices to which
it reports its transactions. In addition, Seller must adhere to any
other standards and requirements for price reporting as the Commission
may order.
* * * * *

PART 284--CERTAIN SALES AND TRANSPORTATION OF NATURAL GAS UNDER THE
NATURAL GAS POLICY ACT OF 1978 AND RELATED AUTHORITIES

0
3. The authority citation for part 284 continues to read as follows:

    Authority: 15 U.S.C. 717-717z, 3301-3432; 42 U.S.C. 7101-7352;
43 U.S.C. 1331-1356.

0
4. Revise Sec.  284.288(a) to read as follows:

Sec.  284.288  Code of conduct for unbundled sales service.

    (a) To the extent Seller engages in reporting of transactions to
publishers of electricity or natural gas indices, Seller must provide
accurate and factual information, and not knowingly submit false or
misleading information or omit material information to any such
publisher, by reporting its transactions in a manner consistent with
the procedures set forth in the Policy Statement, issued by the
Commission in Docket No. PL03-3-000 and any clarifications thereto. For
a Seller who reports in a manner consistent with procedures set forth
in the Policy Statement, there will be a rebuttable presumption that
information submitted to publishers of electricity or natural gas
indices is accurate, timely, and submitted in good faith. Inadvertent
reporting errors by a Seller who reports in a manner consistent with
the procedures set forth in the Policy Statement shall not constitute
violations of this provision. Seller must notify the Commission as part
of its FERC Form No. 552 annual reporting requirement in Sec.  260.401
of this chapter whether it reports its transactions to publishers of
electricity and natural gas indices. In addition, Seller must adhere to
any other standards and requirements for price reporting as the
Commission may order.
* * * * *
0
5. Revise Sec.  284.403(a) to read as follows:

Sec.  284.403   Code of conduct for persons holding blanket marketing
certificates.

    (a) To the extent Seller engages in reporting of transactions to
publishers of electricity or natural gas indices, Seller must provide
accurate and factual information, and not knowingly submit false or
misleading information or omit material information to any such
publisher, by reporting its transactions in a manner consistent with
the procedures set forth in the Policy Statement, issued by the
Commission in Docket No. PL03-3-000 and any clarifications thereto. For
a Seller who reports in a manner consistent with procedures set forth
in the Policy Statement, there will be a rebuttable presumption that
information submitted to publishers of electricity or natural gas
indices is accurate, timely, and submitted in good faith. Inadvertent
reporting errors by a Seller who reports in a manner consistent with
the procedures set forth in the Policy Statement shall not constitute
violations of this provision. Seller must notify the Commission as part
of its FERC Form No. 552 annual reporting requirement in Sec.  260.401
of this chapter whether it reports its transactions to publishers of
electricity and natural gas indices. In addition, Seller must adhere to
any other standards and requirements for price reporting as the
Commission may order.
* * * * *
[FR Doc. 2020-28386 Filed 3-1-21; 8:45 am]
BILLING CODE 6717-01-P