[Federal Register: March 26, 2009 (Volume 74, Number 57)]
[Proposed Rules]
[Page 13152-13161]
[DOCID:fr26mr09-31]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Chapter I

[Docket No. PL09-4-000]

Smart Grid Policy

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

ACTION: Proposed policy statement and action plan.

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

SUMMARY: This proposed policy statement and action plan provides
guidance to inform the development of a smarter grid for the Nation's
electric transmission system focusing on the development of key
standards to achieve interoperability of smart grid devices and
systems. The Commission also proposes a rate policy for the interim
period until interoperability standards are adopted. Smart grid
investments that demonstrate system security and compliance with
Commission-approved Reliability Standards, the ability to be upgraded,
and other specified criteria will be eligible for timely rate recovery
and other rate treatments. This rate policy will encourage development
of smart grid systems.

DATES: Comments on the proposed policy statement and action plan are
due May 11, 2009.

FOR FURTHER INFORMATION CONTACT:

David Andrejcak, Office of Electric Reliability, 888 First Street, NE.,
Washington, DC 20426<PHONE_NUMBER><EMAIL_ADDRESS>Elizabeth H. Arnold, Office of General Counsel, 888 First Street, NE.,
Washington, DC 20426,<PHONE_NUMBER><EMAIL_ADDRESS>Ray Palmer, Office of Energy Market Regulation, 888 First Street, NE.,
Washington, DC 20426,<PHONE_NUMBER><EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

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

Proposed Policy Statement and Action Plan

Issued March 19, 2009.

    1. The Commission is issuing this proposed policy statement to
articulate its policies and near-term priorities to help achieve the
modernization of the Nation's electric transmission system, one aspect
of which is ``Smart Grid'' development. Smart Grid advancements will
apply digital technologies to the grid, and enable real-time
coordination of information from generation supply resources, demand
resources,\1\ and distributed energy resources (DER).\2\ This will
bring new efficiencies to the electric system through improved
communication and coordination between utilities and with the grid,
which will translate into savings in the provision of electric service.
Ultimately the smart grid will facilitate consumer transactions and
allow consumers to better manage their electric energy costs. These
technologies will also enhance the ability to ensure the reliability of
the bulk-power system. The Commission's interest and responsibilities
in this area derive from its authority over the rates, terms and
conditions of transmission and wholesale sales in interstate commerce,
its responsibility for approving and enforcing mandatory reliability
standards for the bulk-power system in the United States, and a
recently enacted law \3\ requiring the Commission to adopt
interoperability standards and protocols necessary to ensure smart-grid
functionality and interoperability in the interstate transmission of
electric power and in regional and wholesale electricity markets. The
development and implementation of these interoperability standards is a
challenging task, which requires the efforts of industry, the states
and other federal agencies, in addition to the Commission. The
Commission intends to use its authority, in coordination and
cooperation with other governmental entities, to help achieve
interoperability in a timely manner. Achievement of interoperability
will not only increase the efficiency of the bulk-power system, with
the goal of achieving long-term consumer savings, but will also enable
demand response and other consumer transactions and activities that
give consumers the tools to better control their electric energy costs.
Reaching this goal will also help promote the integration of
significant new renewable power into the transmission system and help
state and federal initiatives to promote greater reliance on renewable
power and meet future demand growth to satisfy the Nation's energy
needs.
---------------------------------------------------------------------------

    \1\ For purposes of this proposed policy statement, ``demand
resources'' refers to the set of demand response resources and
energy efficiency resources and programs that can be used to reduce
demand or reduce electricity demand growth.
    \2\ DER comprises dispersed generation devices and dispersed
storage devices, including reciprocating engines, fuel cells,
microturbines, photovoltaics, combined heat and power, and energy
storage. See International Electrotechnical Commission,
International Standards IEC 61850-7-420.
    \3\ Energy Independence and Security Act of 2007, Public Law No.
110-140, 121 Stat. 1492 (2007) (EISA).
---------------------------------------------------------------------------

    2. The purpose of the policy statement the Commission ultimately
adopts will be to prioritize the development of key interoperability
standards, provide guidance to the electric industry regarding the need
for full cybersecurity for Smart Grid projects, and provide an interim
rate policy under which jurisdictional public utilities may seek to
recover the costs of Smart Grid deployments before relevant standards
are adopted through a Commission rulemaking. Specifically, development
of interoperability standards for inter-system communication, system
security, wide-area situational awareness, demand response, electric
storage, and electric transportation should be prioritized and
accelerated. The work done on certain standards will provide a
foundation for development of many other standards.
    3. In addition, as further explained below, for the near term we
propose certain rate treatments to encourage investment in Smart Grid
technologies that advance efficiency, security, reliability and
interoperability in order to address potential challenges to the

bulk-power system. We recognize that a key consideration of public
utilities in deciding whether to invest in Smart Grid technologies may
involve the potential for stranded costs associated with legacy systems
that are replaced by Smart Grid equipment. Additionally, as the
electric system may require several of the new capabilities of the
Smart Grid before interoperability standards have been developed, we
recognize the need for guidance for jurisdictional entities. Thus, to
offer some rate certainty and guidance regarding cost recovery issues,
the Commission is proposing a rate policy for the interim period until
final interoperability standards are adopted. The Commission also
proposes that smart grid investments that demonstrate system security
and compliance with Commission-approved Reliability Standards, the
ability to be upgraded, and other specified criteria will be eligible
for timely rate recovery and other rate treatments. For now, we propose
as an interim rate policy to accept single-issue rate filings submitted
under FPA section 205 by public utilities to recover the costs of Smart
Grid deployments involving jurisdictional facilities provided that
certain showings are made. In other words, we propose to consider Smart
Grid devices and equipment, including those used in a Smart Grid pilot
program or demonstration project, to be used and useful for purposes of
cost recovery if an applicant makes the certain showings, as described
below.
    4. We seek comments from the industry on these and other steps the
Commission can take to encourage and expedite the development of
interoperability standards and implementation of Smart Grid projects.
In the near future, we may convene a technical conference for further
public input on these issues.

I. Background

    5. Under the Federal Power Act (FPA), the Commission has
jurisdiction over the transmission of electric energy in interstate
commerce by public utilities, and over the reliable operation of the
bulk-power system in most of the Nation.\4\ The Commission also was
given a new responsibility under the EISA, discussed further below, to
issue a rulemaking to adopt standards and protocols to ensure Smart
Grid functionality and interoperability in interstate transmission of
electric power and in regional and wholesale electric markets.
---------------------------------------------------------------------------

    \4\ 16 U.S.C. 824, 824o.
---------------------------------------------------------------------------

    6. Section 1301 of the EISA states that it is the policy of the
United States to support the modernization of the Nation's electricity
transmission and distribution system to maintain a reliable and secure
electricity infrastructure that can meet future demand growth and to
achieve each of several goals and characteristics, which together
characterize a Smart Grid.\5\ These goals and characteristics are:
---------------------------------------------------------------------------

    \5\ EISA sec. 1301, to be codified at 15 U.S.C. 17381.

    (1) Increased use of digital information and controls technology
to improve reliability, security, and efficiency of the electric
grid. (2) Dynamic optimization of grid operations and resources,
with full cyber-security. (3) Deployment and integration of
distributed resources and generation, including renewable resources.
(4) Development and incorporation of demand response, demand-side
resources, and energy efficiency resources. (5) Deployment of
``smart'' technologies (real-time, automated, interactive
technologies that optimize the physical operation of appliances and
consumer devices) for metering, communications concerning grid
operations and status, and distribution automation. (6) Integration
of ``smart'' appliances and consumer devices. (7) Deployment and
integration of advanced electricity storage and peak-shaving
technologies, including plug-in electric and hybrid electric
vehicles, and thermal storage air conditioning. (8) Provision to
consumers of timely information and control options. (9) Development
of standards for communication and interoperability of appliances
and equipment connected to the electric grid, including the
infrastructure serving the grid. (10) Identification and lowering of
unreasonable or unnecessary barriers to adoption of smart grid
technologies, practices, and services.[\6\]
---------------------------------------------------------------------------

    \6\ Id.

    7. Section 1305(a) of EISA directs the National Institute of
Standards and Technology (the Institute) ``* * * to coordinate the
development of a framework that includes protocols and model standards
for information management to achieve interoperability of smart grid
devices and systems.'' \7\ A helpful description of interoperability is
``the ability of a system or a product to work with other systems or
products without special effort on the part of the customer * * *'' \8\
In order to achieve the Smart Grid characteristics and functions listed
in EISA section 1301, interoperability of Smart Grid equipment will be
essential.
---------------------------------------------------------------------------

    \7\ EISA sec. 1305(a), to be codified at 15 U.S.C. 17385(a).
    \8\ Testimony of Patrick D. Gallagher, PhD, Deputy Director,
National Institute of Standards and Technology, before the Committee
on Energy and Natural Resources, United States Senate, March 3,
2009, available at: http://www.nist.gov/director/ocla/
nist%20pgallagher%20smart%20grid%20testimony%20senate%20e&nr%203-3-
09.pdf. According to the GridWise Architecture Council, the term
``interoperability'' refers to the ability to: (1) Exchange
meaningful, actionable information between two or more systems
across organizational boundaries; (2) assure a shared meaning of the
exchanged information; (3) achieve an agreed expectation for the
response to the information exchange; and (4) maintain the requisite
quality of service in information exchange (i.e., reliability,
accuracy, security). See GridWise Architecture Council,
Interoperability Path Forward Whitepaper at 1-2, 2005, available at:
http://www.gridwiseac.org/pdfs/interoperability_path_whitepaper_
v1_0.pdf. The GridWise Architecture Council was formed by the U.S.
Department of Energy to promote and enable interoperability among
the many entities that interact with the Nation's electric power
system. See http://www.gridwiseac.org/about/mission.aspx.
---------------------------------------------------------------------------

    8. Finally, pursuant to the EISA, once the Commission is satisfied
that the Institute's work has led to ``sufficient consensus'' on
interoperability standards, we are directed to ``institute a rulemaking
proceeding to adopt such standards and protocols as may be necessary to
insure smart-grid functionality and interoperability in interstate
transmission of electric power, and regional and wholesale electricity
markets.'' \9\
---------------------------------------------------------------------------

    \9\ EISA sec. 1305(d), to be codified at 15 U.S.C. 17385(d).
---------------------------------------------------------------------------

    9. The Commission appreciates the Institute's work to assess
current Smart Grid standards and infrastructure to identify gaps, and
is aware of its plans to create a knowledge base to enable effective
communication among stakeholders and a roadmap to lay out a recommended
course toward a highly interoperable grid.\10\ In general, we expect
that the Institute will recommend standards to the Commission that have
resulted from the Institute's coordination with standards development
organizations and technical experts. The Commission will initiate
rulemakings as individual or suites of standards \11\ achieve
sufficient consensus. The Commission will consider the most effective
and efficient ways to interact with the Institute and standards
development organizations between the issuance of a notice of proposed
rulemaking on submitted standards and a final rule adopting standards.
We invite comment on this proposed approach.
---------------------------------------------------------------------------

    \10\ See Testimony of Patrick D. Gallagher, PhD, infra n.8.
    \11\ A suite of standards would consist of a group of related
standards.
---------------------------------------------------------------------------

    10. The Commission will continue to take an active role in helping
to ensure that the participants in the Institute's process effectively
prioritize and sequence future standards development efforts. We invite
comments on what factors the Commission should consider in determining
when the Institute's work has led to ``sufficient consensus'' on
interoperability standards to warrant instituting a rulemaking
proceeding. We

also seek comment and ideas on how to identify and stage the adoption
of successive waves of interoperability standards. Finally, we seek
comment as to whether there should be some formal process for parties
to seek Commission guidance if negotiations on certain interoperability
standards reach an impasse.

II. Discussion

A. Urgency of Achieving Certain Smart Grid Functionalities

    11. As noted above, rather than directing the Institute to develop
interoperability standards of its own, Congress charged the Institute
with coordinating such development. The EISA specifically requires the
Institute to solicit input from, among others, a range of existing
standards development organizations that rely on extensive negotiation
in order to achieve broad industry consensus on proposed standards.\12\
---------------------------------------------------------------------------

    \12\ The EISA specifically names the IEEE (formerly known as the
Institute of Electrical and Electronics Engineers), and the National
Electrical Manufacturers Association. Other relevant existing
standards development organizations could include the International
Electrotechnical Commission (IEC), the American National Standards
Institute (ANSI), the German Standards Institute (actually Deutsches
Institut f[uuml]r Normung), the International Organization for
Standardization, and the International Telecommunication Union.
---------------------------------------------------------------------------

    12. The EISA contains no specific deadline for the creation of
interoperability standards; instead, it provides for a consensus-based
process. However, there is a sense of urgency within industry and
government for the development of standards for and deployment of smart
grid technologies generally. The Commission is particularly interested
in the development of Smart Grid functions and characteristics that can
help address challenges to the Commission-jurisdictional bulk-power
system. These include the cross cutting issues of cybersecurity and the
further development of common information models to allow useful
exchange of electric system information (e.g., standard definitions).
Broad policy goals also need to be addressed such as optimizing the
transmission system to reduce congestion and improve reliability,
security and efficiency; encouraging increased reliance on demand
response; state and possibly national climate change initiatives such
as Renewable Portfolio Standards and other efforts that result in
increased reliance on variable renewable resources; and the potential
for increased and variable electricity loads from the transportation
sector. We discuss in turn the importance of each of these in driving
the need for Smart Grid capabilities and the standards to achieve
interoperability of smart grid devices with the electric grid and its
associated users and infrastructure.
Cybersecurity and Reliability
    13. Absent any consideration of the Smart Grid concept, other
activities and events currently taking place in various regions raise
physical and cybersecurity concerns for the electric industry. For
example, utilities have already taken advantage of the existing
communications infrastructure and capabilities of the Internet to aid
their marketing operations. While typically not connecting their more
sensitive control center systems directly to the Internet, many
entities have nevertheless upgraded those systems to use Internet-based
protocols and technologies. This, coupled with the fact that the non-
Internet-connected control center operations may be connected to the
same corporate network as the Internet-connected marketing systems,
means that there may be an indirect Internet vulnerability to those
sensitive control systems. Accordingly, without adequate protections,
these preexisting utility efforts potentially increase the exposure of
the bulk-power system to cybersecurity threats. Cybersecurity and
physical security have been ongoing concerns for the Commission and the
electric industry with the advent of the mandatory and enforceable
federal bulk-power system reliability regime in place in most of the
United States under the oversight of the Commission pursuant to FPA
section 215.\13\ Pursuant to this section 215 authority, the Commission
recently approved eight cyber and physical protection related
reliability standards.\14\
---------------------------------------------------------------------------

    \13\ 16 U.S.C. 824o.
    \14\ See Mandatory Reliability Standards for Critical
Infrastructure Protection, Order No. 706, 73 FR 7368 (Feb. 7, 2008),
122 FERC ] 61,040, reh'g denied and clarification granted, Order No.
706-A, 123 FERC ] 61,174 (2008). Notably, section 215(a) of the FPA,
16 U.S.C. 824o(a), defines the terms ``reliability standard,''
``reliable operation,'' and ``cybersecurity incident.''
---------------------------------------------------------------------------

    14. The fact that a smarter grid would permit two-way communication
between the electric system and a much larger number of devices located
outside of controlled utility environments commands that even more
attention be given to the development of cybersecurity standards.
Therefore, the Commission proposes to advise the Institute to undertake
the necessary steps to assure that each standard and protocol that is
developed as part of the Institute's interoperability framework is
consistent with the overarching cybersecurity and reliability mandates
of the EISA as well as existing reliability standards approved by the
Commission pursuant to section 215 of the FPA. The Commission proposes
to make consistency with cybersecurity and reliability standards a
precondition to its adoption of Smart Grid standards. We seek comment
on these proposals.
    15. In order to fully incorporate measures to protect against cyber
and physical security threats, we also propose to advise the Institute
to take the necessary steps to assure that its process for the
development of any interoperability standards and protocols leaves no
gaps in cyber or physical security unfilled. We are concerned that this
could be a particular problem where separate groups of interested
industry members independently develop and advocate select standards or
protocols for the Institute's consideration. We seek comment on this
proposal.
Inter-System Communication and Coordination
    16. There is an urgent need to further develop a common semantic
framework (i.e., agreement as to meaning) and software models for
enabling effective communication and coordination across inter-system
interfaces. Such standards could play an important role in the movement
to a smarter grid that is capable of addressing challenges to the
operation of the bulk-power system. The bulk-power system can be
thought of as a system of systems.\15\ In order to enable a smarter
grid, particularly one capable of addressing the bulk-power system
challenges discussed below, effective interfaces must be developed
between and among all of these systems (i.e., inter-system interfaces)
and common information model standards appear to be powerful tools to
enable such inter-system interfaces. The Commission proposes to
identify standards for common information models for inter-system
interfaces as a high priority for accelerated development. We seek
comment on this proposal.
---------------------------------------------------------------------------

    \15\ See Appendix A for a graphic representation of the various
systems.
---------------------------------------------------------------------------

Integrating Renewable Resources Into the Electric Grid
    17. Several groups of states have been working on aggressive
regional carbon control measures,\16\ and one regional effort has
already begun operation in the

form of the Regional Greenhouse Gas Initiative.\17\ Federal legislation
addressing carbon control and other environmental and climate related
matters may follow. These initiatives point toward a shift in the mix
of fuels that will be used to generate electricity, and an associated
shift in where new generation resources are located. Additional
transmission capacity to ensure deliverability of those new generating
resources will be needed in the form of new transmission lines and more
efficient use of existing infrastructure. Also, additional demand
resources, generation resources, and DER will be needed to reliably
integrate variable generation into the electric grid. Efforts to
address these challenges could benefit from the enhanced capabilities
associated with certain aspects of the Smart Grid; among them, the
ability to maximize the capability and use of existing and new
transmission capacity,\18\ and foster the deployment and integration of
demand resources, generation resources and DER.
---------------------------------------------------------------------------

    \16\ See, e.g., the Western Climate Initiative (http://
www.westernclimateinitiative.org/) and the Midwestern Greenhouse Gas
Reduction Accord (http://www.midwesternaccord.org/).
    \17\ See http://www.rggi.org/home.
    \18\ For example, a smarter grid could enable an increase in
transmission capacity through a switch from static to dynamic
transmission line ratings enabled by the advanced sensor,
communications, and information technology capabilities associated
with a smarter grid.
---------------------------------------------------------------------------

    18. As of December 2008, the Nation had 25,170 MW of wind
generation based on nameplate capacity.\19\ According to the 2008 Long-
Term Reliability Assessment by the North American Electric Reliability
Corporation (NERC), an additional 145,000 MW of wind power projects are
planned or proposed over the next ten years.\20\ Accordingly, it is
evident that in a relatively short period of time, some parts of the
bulk-power system may face the need to effectively integrate
unprecedented amounts of variable generation resources. This is
significant because operators of variable generation have less control
over when the resource is available to produce electricity, in contrast
with more conventional fossil and nuclear generation.
---------------------------------------------------------------------------

    \19\ Source, American Wind Energy Association's Web site: http:/
/www.awea.org/projects/.
    \20\ North American Electric Reliability Corporation, 2008 Long-
Term Reliability Assessment at 12.
---------------------------------------------------------------------------

    19. Large amounts of variable generation raise several important
operational and planning issues, including: (1) Resource adequacy
(potential loss and unavailability of variable resources at peak
periods and other critical times such as loss of other generators or
transmission lines); (2) resource management (potential for over-
generation by variable resources during off-peak periods when there is
insufficient load to accommodate such generation); and (3) reduced
system inertia (potential loss of system stability due to the high
penetration of variable resources with low inertia properties).\21\
Given sufficient time and resources, a variety of solutions to these
concerns may be feasible. For example, investment in large amounts of
electricity storage could ultimately address both the resource adequacy
and resource management concerns,\22\ although technical and economic
issues remain to be addressed before such investment is likely to
become significant. In the meantime, Smart Grid-enabled demand response
capabilities \23\ could add important new tools to deal with both
resource adequacy and resource management concerns.\24\ Demand response
reductions in load can help address the resource adequacy concerns
surrounding unexpected loss of variable generation, and EISA envisions,
among other things, the development of large new pools of demand
response resources.\25\
---------------------------------------------------------------------------

    \21\ Inertia is the physical property which allows an object in
motion to continue to stay in motion, absent other forces.
Traditional dispatchable generating units (such as thermal and hydro
power plants) utilize large rotary generators which have large
amounts of inertia. This property has a tendency to stabilize the
bulk-power system with an output response in the event of a
disturbance. Variable resources, such as wind and solar, have less
or no inertia and, as such, cut back more quickly in response to
disturbances (e.g., frequency excursions), which may contribute to
power system instabilities.
    \22\ The Electricity Advisory Committee, which was formed by the
Department of Energy to provide it with advice on a number of
electricity issues, recently issued a report, Bottling Electricity:
Storage as a Strategic Tool for Managing Variability and Capacity
Concerns in the Modern Grid, December 2008. This report asserts that
there are many benefits to deploying energy storage technologies
into the Nation's grid: (1) A means to improve grid optimization for
bulk power production; (2) a way to facilitate power system
balancing in systems that have variable renewable energy sources;
(3) facilitation of integration of plug-in hybrid electric vehicle
power demands with the grid; (4) a way to defer investments in
transmission and distribution infrastructure to meet peak loads
(especially during outage conditions) for a time; and (5) a resource
providing ancillary services directly to grid/market operators.
    \23\ The Smart Grid concept envisions a power system
architecture that permits two-way communication between the grid and
essentially all devices that connect to it, ultimately all the way
down to large consumer appliances. Efforts at realizing this concept
focus on standardization to enable all of this new equipment to be
manufactured economically in support of widespread adoption by
consumers. Once that is achieved, a significant proportion of
electric load could become an important resource to the electric
system, able to respond automatically to customer-selected price or
dispatch signals delivered over the Smart Grid infrastructure
without significant degradation of service quality. For purposes of
this proposed policy statement we will refer to such new demand
response capability as Smart Grid-enabled demand response
capability.
    \24\ A recent NERC Draft Special Report recognizes that
``[d]emand response has already been shown in some balancing areas
to be a flexible tool for operators to use with wind generation
[footnote omitted] and is a potential source of flexibility equal to
supply-side options.'' NERC, Special Report Accommodating High
Levels of Variable Generation at 45; available at http://
www.nerc.com/docs/pc/ivgtf/IVGTF_Reporta_17Nov08.pdf.
    \25\ See, e.g., EISA sec. 1301(4), (5), (6), (8), and (9), to be
codified at 15 U.S.C. 17381(4), (5), (6), (8), and (9).
---------------------------------------------------------------------------

    20. With respect to the resource management concerns surrounding
potential over-generation, this situation tends to arise during off-
peak periods when load is at its lowest and system operators have
already turned off all traditional generation except their large
conventional units that, for primarily operational reasons, must be
operated in a nearly steady state around the clock.\26\ If large
amounts of variable generation begin producing power during such
periods, then the supply of electricity would exceed the demand for
electricity and risk unbalancing the bulk-power system. In order to
bring the system back into balance in a situation where easily
dispatchable generation or demand resources are not available, system
operators may have to require variable generation to reduce output.
However, at such times this variable generation may be producing the
lowest priced energy on the system, so reducing or eliminating its
output would not be economically efficient. If a system existed whereby
entities \27\ could receive a timely signal to temporarily shift their
demand from peak to off-peak, and if such load shifts could be
controlled by the system operator, then such ``dispatchable'' demand
response could alleviate to some degree the resource management
concerns associated with over-generation from the other side of the
supply/demand equation. Again, the urgency to develop and implement
those aspects of a smarter grid that can enable such demand response
capability is clear.\28\
---------------------------------------------------------------------------

    \26\ There can also be an economic justification for around-the-
clock operation because large conventional units tend to have
relatively higher capital costs and lower running costs. However,
their generally slow and difficult start-up and cool-down sequences
are the main reason why they cannot be started and stopped easily to
address over-generation situations.
    \27\ Such entities would need to have invested in the equipment
necessary to reliably measure and control either their own load or
the load of clients that they manage under contract.
    \28\ See, e.g., EISA sec. 1301(4), (5), (6), (8), and (9).
---------------------------------------------------------------------------

    21. The future potential for a large and variable new class of
electric load, specifically electricity-powered vehicles, also presents
challenges that

may deserve special attention and priority in the consensus-based
interoperability process being coordinated by the Institute. In
addition to the plans of major automobile manufacturers to roll out
plug-in hybrid vehicles starting in 2010, it is possible that large
numbers of pure electric vehicles, sometimes known as neighborhood
electric vehicles, could be purchased as second cars for short-haul
daily commuting or for other purposes.\29\ Judging by the observed
intensity of electric utility and state government interest in this
area,\30\ the potential for a significant shift in personal
transportation technology to electric power in the near future cannot
be discounted.
---------------------------------------------------------------------------

    \29\ See, e.g., Kris Osborn, Services Plan to Buy Electric Cars,
Federal Times, November 17, 2008, at 3 (noting that Army, Navy, and
Air Force plan to purchase a total of 30,000 neighborhood electric
vehicles for use on military bases).
    \30\ See, e.g., John S. Adams, Bill benefits `medium-speed'
electric cars, Great Falls Tribune, January 9, 2009 (reporting on
efforts in the Montana legislature to ease restrictions and
ownership and use requirements on ``medium speed'' electric
vehicles, which could include electric vehicles of up to 5,000
pounds gross vehicle weight), available at http://
www.greatfallstribune.com/article/20090109/NEWS01/901090337.
---------------------------------------------------------------------------

    22. The timing of vehicle charging activities is an illustration of
the effect electric vehicles can have on the operation of the electric
grid. If charging takes place during peak periods it could require a
large investment in new generation, demand response resources and/or
transmission capacity to meet the resulting higher peak loads. However,
charging off-peak could actually improve the operation of the electric
system, for example by improving existing generation asset utilization
or by providing an electricity storage solution to address the
potential for over-generation by variable resources in off-peak
periods. Ultimately, large numbers of plug-in electric vehicles have
the potential to provide some ancillary services like distributed
energy storage or, when aggregated, regulation service. In all cases,
however, the enhanced information processing and high-speed
communications and control capabilities of the Smart Grid would be
extremely helpful, perhaps necessary, in dealing with the challenges
and opportunities associated with large numbers of new electric
vehicles on the bulk-power system.
    23. Additionally, these and other changing patterns of electricity
generation and use are increasing the frequency with which congestion
on transmission facilities becomes binding and raises costs for
consumers. The Smart Grid concept includes the deployment of advanced
sensors and controls throughout the electric system that should
maximize the capability and use of existing and new transmission
capacity.
    24. For all of the reasons discussed above, which may represent
direct challenges to the reliable operation of the bulk-power system
and wholesale power markets, the fact that many utilities are already
beginning to deploy Smart Grid related systems, and the substantial
funding for Smart Grid in the American Recovery and Reinvestment
Act,\31\ the Commission herein proposes a targeted acceleration of
certain aspects of the interoperability standards process as described
further below.\32\
---------------------------------------------------------------------------

    \31\ See American Recovery and Reinvestment Act, Public Law No.
111-5, Title IV, Subpart A, ---- Stat. ----, ----(2009) (ARRA).
    \32\ This is consistent with the Institute's approach of
prioritizing standards and functionalities that may impact
reliability. See NIST Smart Grid Issues Summary, March 10, 2009,
available at: http://www.nist.gov/smartgrid/ (in case link is
temporarily unavailable at this Web site, please request it via e-
mail at: smartgrid@nist.gov).
---------------------------------------------------------------------------

B. Development of Key Interoperability Standards

    25. As discussed above, several important trends indicate a strong
national interest in expediting the development and deployment of the
types of technologies and capabilities associated with a smarter grid.
To achieve these types of capabilities, Smart Grid technologies must be
interoperable.\33\ The Commission understands that a consensus-based
interoperability standards development process typically requires time
to reach consensus, but also recognizes that recent efforts by the
Institute and several industry groups, including the OpenSG
Subcommittee of the Utility Communication Architecture International
User Group (OpenSG Subcommittee) and the GridWise Architecture Council,
have developed concepts to prioritize the large set of potential
standards, and have suggested principles for expediting development of
a set of transmission and distribution systems standards that will
facilitate many other important standards development activities. The
Commission is committed to identifying these key transmission and
distribution standards and working with the Institute to expedite their
adoption. The Commission believes that focusing on the priorities
identified below will help to remove uncertainty for developers of
standards applicable to all levels of the grid.
---------------------------------------------------------------------------

    \33\ See Gridwise Architecture Council, Interoperability Path
Forward Whitepaper, infra n.8.
---------------------------------------------------------------------------

    26. The Institute has issued for comment a ``Smart Grid Issues
Summary'' that will act as an interim roadmap, starting with high
priority standards that are largely based on existing broadly accepted
standards.\34\ Leveraging existing standards to the greatest extent
practical should shorten the time required to finalize needed
interoperability standards.
---------------------------------------------------------------------------

    \34\ See infra n.32.
---------------------------------------------------------------------------

    27. The Commission proposes to prioritize the development of
standards for two cross-cutting issues and four key grid
functionalities involving interfaces between utilities (e.g., regional
transmission organizations (RTO) to utilities outside the RTO),
utilities and customers, and utilities and other systems (e.g., energy
management systems). These cross-cutting issues and key functionalities
are proposed as the first level of work to be accomplished in the
interoperability standards-setting process. Swift progress on adopting
standards for these cross-cutting issues and key functionalities is
necessary for the transmission operator/RTO to address the bulk-power
system challenges identified above.
    28. The two cross cutting issues are first, cybersecurity (and
physical security to protect equipment that can give access to Smart
Grid operations) and second, a common semantic framework and software
models for enabling effective communication and coordination at the
boundaries of utility systems where these interface with customer and
other systems (and hence provide ``inter-system'' functionality).\35\
The four key grid functionalities are wide-area situational awareness,
demand response, electric storage, and electric transportation.
---------------------------------------------------------------------------

    \35\ The concept of the Smart Grid as a ``system of systems''
and the importance of the need of first focusing on the inter-system
interfaces are presented in a paper by the OpenSG Subcommittee and
Smart Grid Executive Working Group entitled Smart Grid Standards
Adoption: Utility Industry Perspective (Utility Perspective Paper),
available at: http://osgug.ucaiug.org/Shared%20Documents/Forms/
AllItems.aspx. A graphic that illustrates these concepts is found in
Appendix A.
---------------------------------------------------------------------------

System Security
    29. We propose two initial overarching principles regarding
security that Smart Grid applications must address in order to comply
with the need for full cybersecurity and with the Commission's bulk-
power system concerns, consistent with our authority under section 215
of the FPA.\36\ First, we believe that a responsible entity subject to
Commission-approved

reliability standards, such as the Critical Infrastructure Protection
Reliability Standards, must ensure that it maintains compliance with
those standards during and after the installation of Smart Grid
technologies. Indeed, many Smart Grid installations will need to be
included on a responsible entity's list of critical assets to be
protected under the Commission-approved NERC Critical Infrastructure
Protection Reliability Standards.
---------------------------------------------------------------------------

    \36\ 16 U.S.C 824o.
---------------------------------------------------------------------------

    30. Second, to the extent that they could affect the reliability of
the bulk-power system, Smart Grid technologies must address, the
following considerations: (1) The integrity of data communicated
(whether the data is correct); (2) the authentication of the
communications (whether the communication is between the intended Smart
Grid device and an authorized device or person); (3) the prevention of
unauthorized modifications to Smart Grid devices and the logging of all
modifications made; (4) the physical protection of Smart Grid devices;
and (5) the potential impact of unauthorized use of these Smart Grid
devices on the bulk-power system.
    31. To the extent that any of the new Smart Grid standards or
extensions to relevant existing standards require adaptation or
extension in order to address these security-related concerns, such
considerations should be given the highest priority. The Institute has
suggested that beyond the NERC Critical Infrastructure Protection
Reliability Standards, additional security standards to be investigated
include ISA99/IEC 62443, NIST Special Publication (SP) 800-53, and the
work of AMI-SEC.\37\ The Institute also suggests examining
harmonization of several of these standards in order to provide
additional protection to the bulk-power system. Commission staff will
monitor Institute activities with respect to Smart Grid cybersecurity
and physical security in order to fully coordinate the Commission's
regulatory objectives and responsibilities in this arena. The
Commission seeks comments on this proposed approach to maintaining
bulk-power system reliability and security as smart grid technologies
are deployed and integrated.
---------------------------------------------------------------------------

    \37\ ISA99/IEC 62443 represents a suite of standards for
industrial automation and control system security. NIST Special
Publication (SP) 800-53 involves security controls for federal
agencies, including those who are part of the bulk-power system
(e.g., Tennessee Valley Authority, Bonneville Power Authority). The
Advanced Metering Infrastructure (AMI) Security Task Force (AMI-
SEC), is defining common requirements and standardized
specifications for securing AMI system elements.
---------------------------------------------------------------------------

Communication
    32. The second cross-cutting issue is the need for a common
semantic framework (i.e., agreement as to meaning) and software models
for enabling effective communication and coordination across inter-
system interfaces. An interface is a point where two systems need to
exchange data with each other; effective communication and coordination
occurs when each of the systems understands and can respond to the data
provided by the other system, even if the internal workings of each
system are quite different. A core group of standards initiated by the
Electric Power Research Institute provide the basis for addressing this
issue--these standards are IEC 61970 and IEC 61968 (together often
referred to as the ``Common Information Model'' standards) and IEC
61850. These standards have been cited by both the Utility Perspective
Paper, as well as the Institute's recent Smart Grid Issues Summary.\38\
This group of standards was designed to allow different systems to talk
to one another as well as to provide software development tools for
more efficient system integration. This suite of standards is already
in use by a number of utilities for enterprise system integration
(enabling integration across ``intra-system'' interfaces). Indeed,
while additional work on these standards will also help intra-system
communication and coordination, we agree with the OpenSG Subcommittee
and the Institute that inter-system interfaces should be a priority.
---------------------------------------------------------------------------

    \38\ See infra n.32.
---------------------------------------------------------------------------

    33. The Commission is not mandating that these particular standards
be further developed. Rather, we identify them here to establish
priorities for further development by the Institute and industry. The
group of standards initiated by the Electric Power Research Institute
serves as a foundation for developing a complete set of communications
standards. These standards require some level of harmonization with one
another and other standards, and extensions to these standards will be
required for additional interoperability and functionality. Efforts to
coordinate and/or harmonize these standards with others intended to
promote interoperability should be encouraged. For example, ongoing
efforts to coordinate IEC 61968 with ``MultiSpeak'' developed by the
National Rural Electrical Cooperative Association should be continued.
But these standards represent the best work to date and will be an
essential building block in realizing the most significant early
benefits for the bulk-power system. These standards are also key to the
attainment of renewable power and climate policy goals and can help
enable customers to manage their energy usage and cost. The Commission
seeks comments on this proposed approach.
Four Priority Functionalities
    34. In addition to the cross-cutting issues discussed above, the
Commission seeks comments on the four Smart Grid functionalities that
the Commission's preliminary analysis indicates will be most helpful in
addressing the bulk-power system challenges and should be given
priority in the standards development process.
Wide-Area Situational Awareness
    35. Wide-area situational awareness is the visual display of
interconnection-wide system conditions in near real time at the
reliability coordinator level and above. The wide-area situational
awareness efforts, with appropriate cybersecurity protections, can rely
on the NASPInet work undertaken by the North American SynchroPhasor
Initiative (NASPI) and will require substantial communications and
coordination across the RTO and utility interfaces. We encourage the
RTOs to take a leadership role in coordinating the NASPI work with the
member transmission operators.
    36. Regarding the potential Smart Grid role in addressing
transmission congestion and optimization of the system, increased
deployment of advanced sensors like Phasor Measurement Units will give
bulk-power system operators access to large volumes of high-quality
information about the actual state of the electric system that should
enable a more efficient use of the electric grid, for example through a
switch from static to dynamic line ratings. However, such large volumes
of data present challenges in the form of information processing and
management. Advanced software and systems will be needed to manage,
process, and render this data into a form suitable for human operators
and automated control systems. The Institute's process should strive to
identify the core requirements for such software and systems that would
be most useful to system operators in addressing transmission
congestion and reliability.
Demand Response
    37. Smart Grid-enabled demand response is a priority because of its
potential to help address several of the bulk-power system challenges
identified

above. Further development of key standards would enhance
interoperability and communications between system operators, demand
response resources, and the systems that support them. In order to
achieve an appropriate level of standardizations, a series of demand
response ``use cases'' should be developed using readily available
tools.\39\ In this regard, we encourage a particular focus on use cases
for the key demand response activities discussed earlier: dispatchable
demand response load reductions to address loss or unavailability of
variable resources and the potential for dispatchable demand response
to increase power consumption during over-generation situations.
---------------------------------------------------------------------------

    \39\ The ``use case'' is a concept from the software and systems
engineering communities whereby a developer, usually in concert with
the end user, attempts to identify all of the functional
requirements of a system. Each ``use case'' essentially describes
how a user will interact with a system to achieve a specific goal.
---------------------------------------------------------------------------

    38. It also appears that achieving such demand response
capabilities will require additional standardization of the interfaces
between systems on the customer premises and utility systems, including
addressing data confidentiality issues. The Institute notes that
considerable work has been done to develop demand response standards.
One standard, Open Automated Demand Response (OpenADR) (developed for
the interface between the utility and large commercial customers) has
already been referred to the Organization for the Advancement of
Structured Information Systems (OASIS). OpenADR has been developed by
the Lawrence Berkeley National Laboratory, and is now going through a
formal standards development process being coordinated between OASIS
and the Utility Communication Architecture International User
Group.\40\ Accordingly, we would encourage a focus in this area as
well.
---------------------------------------------------------------------------

    \40\ The Utility Communication Architecture International User
Group has also been developing OpenHAN, a specification for the
energy services interface between the home area network (HAN) and
the utility. Both OpenHan and OpenADR will benefit from the planned
extensions of IEC 61850 and the common information model standards
described above.
---------------------------------------------------------------------------

    39. Specifications for customer meters are within the jurisdiction
of the States, but it is clear that communication and coordination
across the interfaces between the utility and its customers can have a
significant impact on the bulk-power system, particularly as new
renewable power and climate policy initiatives introduce the need for
more flexibility in the electricity grid, which creates the need for
increased reliance on demand response and electricity storage. A large
portion of electricity storage may ultimately be located on customer
premises. As noted in the Institute's Smart Grid Issues Summary, an
appropriate starting point for further standards development would be
the harmonization of IEC Standard 61850 and several meter standards,
namely ANSI C12.19 and C12.22, and we encourage the Institute and
industry to work together on this suggestion. The Commission seeks
comment from States and other parties on the optimal approach to
develop standards in this area, and we will pursue direct
communications with the States on this topic through the NARUC-FERC
Smart Grid Collaborative and other NARUC Committees.
Electric Storage
    40. The third key grid functionality is electric storage. If
electricity storage technologies could be more widely deployed, they
would present another important means of addressing some of the
difficult issues facing the electric industry. To date, the only
significant bulk electricity storage technology has been pumped storage
hydroelectric technology. However, we are aware that new types of
storage technologies are under development and in some cases are being
deployed, and could also potentially provide substantial value to the
electric grid. While further research and development appears necessary
before any widespread deployment of such newer technologies can take
place, it may nevertheless be appropriate to encourage the
identification and standardization of all possible electricity storage
use cases at an early stage. There are existing standards that can be
the starting point for interoperability standards development for DER.
IEC 61850 addresses communications for DER, and IEEE 1547 has been
designated as a federal standard for interconnection.\41\
---------------------------------------------------------------------------

    \41\ See Energy Policy Act of 2005, Public Law No. 109-58, sec.
1254, 110 Stat. 594, 970 (2005), adding a new subsection 111(d)(15)
to the Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
2621(d)).
---------------------------------------------------------------------------

Electric Transportation
    41. The fourth key grid functionality is electric transportation.
As indicated above, to the extent that new electric transportation
options become widely adopted in the near future, maintaining the
reliable operation of the bulk-power system will require some level of
control over when and how electric cars draw electricity off of the
system. At the most basic level, this could be accomplished by
providing an ability for distribution utilities to facilitate vehicle
charging during off-peak periods so that this new electric load would
not increase peak loads and require the development of new peak
generation, demand response and/or more transmission to urban load
centers that are being targeted for these vehicles. A more advanced
implementation could offer vehicle owners the option to voluntarily
limit their charging to times when variable renewable generation is
producing power or to permit utilities the limited use of the
aggregated capabilities of these vehicles for various grid-related
purposes such as bulk power storage or ancillary services.
    42. Ultimately we would hope for a smarter grid to accommodate a
wide array of advanced options for electric vehicle interaction with
the grid, including full vehicle-to-grid capabilities. However,
assuming full vehicle-to-grid capabilities cannot be achieved
immediately, we would encourage the Institute's process to focus on the
development of appropriate standards, or extensions to relevant
existing standards, to provide at least the minimum communications and
interoperability requirements that are necessary to permit some ability
for distribution utilities to facilitate vehicle charging during off-
peak load periods. The Institute's Smart Grid Issues Summary notes that
the Society of Automotive Engineers (SAE) has developed two draft
standards, SAE J2836 and SAE J2847, which address communications and
price signals/demand response respectively. These standards are on the
SAE 2009 Ballot. Looking forward to the potential provision of
ancillary services to the grid by electric vehicles, electrical
interconnection issues must be dealt with along with potential
expansion of communications ability. To this end, we urge the SAE and
the automobile industry to plan data communications systems between
electric vehicles and the grid that are able to be upgraded. We also
urge the Institute to include electric vehicles in its DER standards
development.
    43. Several of the preceding paragraphs discuss the development of
use cases or other standards that appear similar to business practice
standards development, in order to help shape and identify the
functional needs that the Institute's technical interoperability
standards development process will address. Since the North American
Energy Standards Board (NAESB) has a great deal of experience in
helping the electric and natural gas industries successfully negotiate
business practice standards, it may be helpful to the

Institute to engage NAESB resources in the development of these use
cases and other business practice-like standards. We seek comment as to
whether the Institute would be helped by the incorporation of resources
from other organizations such as NAESB into the development of these
various business practice-like standards.
    44. The Commission seeks comment on whether the priorities and
reliability principles articulated above are appropriate, and whether
there are other priorities or reliability principles that should be
included in order to address potential challenges to the operation of
the bulk-power system.

C. Interim Rate Policy: Guidance for Smart Grid-Related Filings by
Jurisdictional Entities

    45. Given the trends discussed above, Smart Grid policies should
encourage utilities to deploy systems in the near term that advance
efficiency, security, and interoperability in order to address
potential challenges to the bulk-power system. A key consideration for
utilities when determining whether to adopt such systems will be
whether they are able to recover the costs of these deployments in
regulated rates. Another key consideration may involve the potential
for stranded costs associated with legacy systems that are replaced by
Smart Grid equipment. Additionally, as the electric system may require
several of the new capabilities of the Smart Grid before
interoperability standards have been developed, we recognize the need
for guidance for jurisdictional entities. Thus, to offer some rate
certainty and guidance regarding cost recovery issues, the Commission
is proposing a rate policy for the interim period until final
interoperability standards are adopted.
    46. FPA section 205 requires that all rates for the transmission or
sale of electric energy subject to the Commission's jurisdiction be
just and reasonable.\42\ In evaluating expenses for which cost recovery
is appropriate, one of the criteria the Commission relies on is whether
the facilities are ``used and useful.'' \43\ Once interoperability
standards are completed, the Commission will consider making compliance
with those standards a mandatory condition for rate recovery of
jurisdictional Smart Grid investments. For now, we propose as an
interim rate policy to accept rate filings, including single issue rate
filings, submitted under FPA section 205 by public utilities to recover
the costs of Smart Grid deployments involving jurisdictional facilities
provided that certain showings are made. In other words, we propose to
consider Smart Grid devices and equipment, including those used in a
Smart Grid pilot program or demonstration project, to be used and
useful for purposes of cost recovery if an applicant makes the
following showings.
---------------------------------------------------------------------------

    \42\ 16 U.S.C. 824d.
    \43\ The general rate-making principle is that expenditures for
an item may be included in a public utility's rate base only when
the item is ``used and useful'' in providing service. See NEPCO
Municipal Rate Committee v. FERC, 668 F.2d 1327, 1333 (DC Cir.
1981).
---------------------------------------------------------------------------

    47. We propose that an applicant must show that the reliability and
security of the bulk-power system will not be adversely affected by the
deployment at issue. Second, the filing must show that the applicant
has minimized the possibility of stranded investment in Smart Grid
equipment by designing for the ability to be upgraded, in light of the
fact that such filings will predate adoption of interoperability
standards. Finally because it will be important for early Smart Grid
deployments, particularly pilot and demonstration projects, to provide
feedback useful to the interoperability standards development process,
we propose to direct the applicant to share information with the
Department of Energy Smart Grid Clearinghouse, provided for in the
ARRA.\44\
---------------------------------------------------------------------------

    \44\ ARRA sec. 405(3).
---------------------------------------------------------------------------

    48. In order to satisfy our first concern about reliability and
security, we propose that applicants will be required to address the
security concerns discussed in the previous section on the development
of key standards. Accordingly, an applicant must show how its proposed
deployment of Smart Grid equipment will maintain compliance with
Commission-approved reliability standards, such as the Critical
Infrastructure Protection Reliability Standards, during and after the
installation and activation of Smart Grid technologies so the
reliability and security of the bulk-power system will not be
jeopardized. An applicant must also address: (1) The integrity of data
communicated (whether the data is correct); (2) the authentication of
the communications (whether the communication is between the intended
Smart Grid device and an authorized device or person); (3) the
prevention of unauthorized modifications to Smart Grid devices and the
logging of all modifications made; (4) the physical protection of Smart
Grid devices; and (5) the potential impact of unauthorized use of these
Smart Grid devices on the bulk-power system.
    49. Regarding the second concern about stranded Smart Grid
investment, we propose to require a showing that the applicants have
made good faith efforts to adhere to the vision of a Smart Grid
described in Title XIII of the EISA, including optimizing asset
utilization and operating efficiency. In general, applicants should
attempt to adhere to the principles of the Gridwise Architecture
Council Decision-Maker's Interoperability Checklist.\45\ In practice,
we will place the most weight on an applicant's adherence to the
following principles: (1) Reliance to the greatest extent practical on
existing, widely adopted and open \46\ interoperability standards; and
(2) where feasible, reliance on systems and firmware that can be
securely upgraded readily and quickly. Adherence to these two key
principles should minimize the possibility of stranded smart grid
investment by making it less likely that equipment replacement will be
required once final standards are approved.
---------------------------------------------------------------------------

    \45\ See Gridwise Architecture Council Decision-Maker's
Interoperability Checklist Draft Version 1.0, available at http://
www.gridwiseac.org/pdfs/gwac_decisionmakerchecklist.pdf
(Interoperability Checklist).
    \46\ An open architecture is publicly known, so any and all
vendors can build hardware or software that fits within that
architecture, and the architecture stands outside the control of any
single individual or group of vendors. In contrast, a closed
architecture is vendor-specific and proprietary, and blocks other
vendors from adoption. An open architecture encourages multi-vendor
competition because every vendor has the opportunity to build
interchangeable hardware or software that works with other elements
within the system. See Gridwise Architecture Council Decision-
Maker's Interoperability Checklist Draft Version 1.0, available at
http://www.gridwiseac.org/pdfs/gwac_decisionmakerchecklist.pdf. We
note that Congress recently made utilization of open protocols and
standards, if available and appropriate, a condition of receiving
funding from the Department of Energy for demonstration projects and
grants pursuant to EISA sections 1304 and 1306. See American
Recovery and Reinvestment Act, Public Law No. 111-5, sec. 405(3) and
405(8),----Stat.----,----(2009).
---------------------------------------------------------------------------

    50. Regarding the information sharing concern, the following
information should be shared with the Department of Energy Smart Grid
Clearinghouse: (1) Any internal or third party evaluations, ratings,
and/or reviews including all primary source material used in the
evaluation; (2) detailed data and documentation explaining any
improvement in the accurate measurement of demand response resources;
(3) detailed data and documentation explaining the expansion of the
quantity of demand response resources that resulted from the project
and the resulting economic effects; (4) detailed data and documentation
for any improvements in the ability to integrate variable renewable
generation resources; (5) detailed data and documentation that

shows any achievement of greater system efficiency through a reduction
of transmission congestion and loop flow; (6) detailed data and
documentation showing how the information infrastructure supports DER
such as plug-in electric vehicles; and (7) detailed data and
documentation that shows how the project resulted in enhanced
utilization of energy storage. To the extent that the Department of
Energy specifies additional criteria for making grants under the ARRA
for Smart Grid demonstration and pilot projects, the Applicant should
agree to share information relevant to those criteria as well.
    51. Finally, consistent with the policy of supporting the
modernization of the Nation's electric system announced in EISA section
1301, the Commission also proposes to permit applicants to file for
recovery of the otherwise stranded costs of legacy systems that are to
be replaced by smart grid equipment. However, an appropriate plan for
the staged deployment of smart grid equipment, which could include
appropriate upgrades to legacy systems where technically feasible and
cost-effective, could help minimize the stranding of unamortized costs
of legacy systems. Accordingly, we propose that any filing for the
recovery of stranded legacy system costs must demonstrate that such a
migration plan has been developed.
    52. The Commission will also entertain requests for rate treatments
such as accelerated depreciation and abandonment authority (whereby an
applicant is assured of recovery of abandoned plant costs if the
project is abandoned for reasons outside the control of the public
utility) specifically tied to Smart Grid deployments under our FPA
section 205 authority. Any requests for such rate treatments for Smart
Grid deployments will need to address all of the concerns discussed
above for rate recovery and make the same showings described in that
section. We would also consider applying these rate treatments to the
portion of a smart grid pilot or demonstration project's cost that is
not already paid for by Department of Energy funds, such as those
authorized by EISA sections 1304 and 1306.\47\ To the extent that such
showings are made, we propose to consider permitting abandonment
authority to apply to any Smart Grid investments that, despite
reasonable efforts, could not be made upgradeable and must ultimately
be replaced if found to conflict with the final standards to be
approved under the Institute's standards development process.
---------------------------------------------------------------------------

    \47\ To be codified at 42 U.S.C. 17384, 17386.
---------------------------------------------------------------------------

    53. The Commission invites comments on all aspects of this proposed
interim rate policy.

III. Comment Procedures

    54. The Commission invites comments on this proposed policy
statement May 11, 2009.

IV. Document Availability

    55. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
Internet through 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.
    56. From FERC's Home Page on the Internet, this information is
available on eLibrary. The full text of this document is available on
eLibrary in PDF and Microsoft Word format for viewing, printing, and/or
downloading. To access this document in eLibrary, type the docket
number excluding the last three digits of this document in the docket
number field.
    57. User assistance is available for eLibrary and the FERC's Web
site during normal business hours from FERC Online Support at 202-502-
6652 (toll free at 1-866-208-3676) or e-mail at
<EMAIL_ADDRESS>or the Public Reference Room at (202) 502-
8371, TTY<PHONE_NUMBER>. E-mail the Public Reference Room at
<EMAIL_ADDRESS>
    By the Commission.
Nathaniel J. Davis, Sr.,
Deputy Secretary.

Appendix A

[GRAPHIC] [TIFF OMITTED] TP26MR09.000

    Adapted from: Smart Grid Standards Adoption: Utility Industry
Perspective, OpenSG Subcommittee of the Utility Communication
Architecture International User Group, and Smart Grid Executive
Working Group.

[FR Doc. E9-6471 Filed 3-25-09; 8:45 am]

BILLING CODE 6717-01-P


(20)	Comment:  The ALA, EJ, EDF, and NRDC also recommended that EPA
“formulate a rational basis for re-designation based on limited
monitoring data and available information on mobile source emissions
from the relevant roadways.”  Under this approach, EPA is encouraged
to “commit to designating near roadway areas no later than the end of
2013.”  These same groups also commented, “We believe it is
reasonable to…promulgate a nonattainment SIP submittal deadline of no
later than the end of 2015.”  Other environmental groups (e.g., CAC)
also commented that the timing for designations should be accelerated.

	Response:   Section 110(d)(1)(B) of the CAA requires the EPA to
designate areas as

attainment, nonattainment or unclassifiable no later than 2 years
following promulgation

of a new or revised NAAQS (the CAA provides the Agency an additional
third year

from promulgation should there be insufficient information

on which to make compliance determinations).  The EPA intends to
finalize initial

designations for the revised NO2 NAAQS in January 2012.

A near-roadway monitoring network is not expected to be fully deployed
until January

2013.  For this reason, EPA will proceed with initial designations using
air quality data

from the existing, area-wide NO2 monitoring network in order to complete
designations

by January 2012.  Once the near-roadway network is fully deployed and 3
years of air

quality data are available, the EPA intends to redesignate areas, as
appropriate, based on

the most recent air quality data from the new monitoring network.  For
both initial

designations and redesignations, EPA will use monitoring data to
identify violations of

the standards.  EPA would then consider a variety of other factors in
determining which

nearby areas contribute to a violation in setting the boundaries.

The response to commenters’ requests that EPA both shorten and extend
SIP and

attainment deadlines is provided in the implementation section of the
preamble.

(21)	Comment:  One commenter (City of NY) recommended that EPA should
develop a screening approach to estimate short-term NO2 concentrations,
and provide source-type specific N02/NOX ratios with the NOX emission
factors.

Response:  It is EPA's intention to utilize the current guidance and
policies to implement the revised NAAQS for NO2.  However, we will be
reviewing the need to provide additional technical as well as policy
guidance following the promulgation of the NAAQS.

(22)	Comment:  API recommended that EPA “follow the precedent that was
set for PM2.5 by postponing the use of dispersion modeling to evaluate
short-term ambient NO2 concentrations until appropriate modeling tools
are developed, evaluated, peer-reviewed, and subjected to public comment
and review.

	Response:  It is EPA's intention to utilize the current guidance and
policies to implement the revised NAAQS for NO2.  However, we will be
reviewing the need to provide additional technical as well as policy
guidance following the promulgation of the NAAQS.

References

Atkinson, R., “Atmospheric Transformations of Automotive Emissions”.
In Air Pollution, the Automobile, and Public Health, A. Y. Watson, R. R.
Bates, and D. Kennedy, Ed. National Academies Press, ISBN:
0-309-56826-9, (1988). Available at:
http://www.nap.edu/catalog/1033.html

Bailey C.  (2009).  Dispersion Modeling for Mobile Source Applications,
Regional, State, and Local Air Modelers’ Workshop, Philadelphia, PA
–May 14, 2009.   Available at:   HYPERLINK
"http://www.cleanairinfo.com/regionalstatelocalmodelingworkshop/archive/
2009/presentations/06%20Thurs%20AM/Bailey_Dispersion%20Modeling%20for%20
Mobile%20Source%20Applications.pdf"
http://www.cleanairinfo.com/regionalstatelocalmodelingworkshop/archive/2
009/presentations/06%20Thurs%20AM/Bailey_Dispersion%20Modeling%20for%20M
obile%20Source%20Applications.pdf .

Beardsley M, Warila J, Dolce G, Koupal J.  (2009).  Air Pollution
Emissions from Highway Vehicles: What MOVES Tells Us.  18th Annual
International Emission Inventory Conference, Baltimore, MD, April, 2009.

Beckerman B,  Jerrett M, Brook JR, Verma DK, Arain MA, Finkelstein MM.
(2008). Correlation of nitrogen dioxide with other traffic pollutants
near a major expressway.  Atmos Environ.  42:275-290.

CARB.  (2003).  Characterizing the Range of Children's Pollutant
Exposure during School Bus Commutes.  Prepared for the California Air
Resources Board under Contract No. 00-322. October 10, 2003.

Carslaw DC.  (2008).  Evidence of an increasing NO2/NOx emissions ratio
from road traffic emissions.  Atmos Environ.  39:4793–4802.

Centers for Disease Control and Prevention (CDC). (2004) Introduction
and approach to causal inference. In: The health consequences of
smoking: a report of the Surgeon General. Atlanta, GA: U.S. Department
of Health and Human Services, Centers for Disease Control and
Prevention, National Center for Chronic Disease Prevention and Health
Promotion, Office on Smoking and Health. Available:
http://www.cdc.gov/tobacco/sgr/sgr_2004/chapters.htm (18 August, 2004).

Chock D.  (1977).  General motors sulfate dispersion experiment:
assessment of the EPA HIWAY model.  JAPCA.  27:39-45.

Delfino, RJ, Zeiger RS, Seltzer JM, Street DH, McLaren CE. (2002).
Association of asthma symptoms with peak particulate air pollution and
effect modification by anti-inflammatory medication use.  Environ.
Health Perspect. 110:A607-A617.

Dieselnet.  (2008).  EU diesel market share at 53%.  22 February 2008.
Available at:   HYPERLINK
"http://www.dieselnet.com/news/2008/02acea.php"
http://www.dieselnet.com/news/2008/02acea.php .

EPA (2004).  Air Quality Criteria Document for Particulate Matter.
Accessible at http://cfpub.epa.gov/ncea/cfm/recordisplay.cfm?deid=216546

EPA (2005). Guidelines for Carcinogen Risk Assessment.  Accessible at
HYPERLINK "http://cfpub.epa.gov/ncea/cfm/recordisplay.cfm?deid=116283"
http://cfpub.epa.gov/ncea/cfm/recordisplay.cfm?deid=116283 .

EPA (2005a).  Review of the National Ambient Air Quality Standards for
Particulate Matter: Policy Assessment of Scientific and Technical
Information, OAQPS Staff Paper. Office of Air Quality Planning and
Standards, Research Triangle Park, NC.  Available at:   HYPERLINK
"http://www.epa.gov/ttn/naaqs/standards/pm/data/pmstaffpaper_20051221.pd
f"
http://www.epa.gov/ttn/naaqs/standards/pm/data/pmstaffpaper_20051221.pdf
.

EPA (2005b).  Technical Support Document for the Final Clean Air
Interstate Rule: Air Quality Modeling, RTP, NC, 285pp.

EPA (2007a).  Review of the National Ambient Air Quality Standards for
Pb: Policy Assessment of Scientific and Technical Information. OAQPS
Staff paper.  Office of Air Quality Planning and Standards, Research
Triangle Park, NC.  EPA-452/R-07-013.  Available at:
http://www.epa.gov/ttn/naaqs/standards/pb/data/20071101_pb_staff.pdf
HYPERLINK "http://epa.gov/ttn/naaqs/standards/ozone/s_o3_cr_sp.html"   .

EPA.  (2007b).  Review of the National Ambient Air Quality Standards for
Ozone: Assessment of Scientific and Technical Information. OAQPS Staff
paper.  Office of Air Quality Planning and Standards, Research Triangle
Park, NC.  EPA-452/R-07-007a.  Available at:   HYPERLINK
"http://epa.gov/ttn/naaqs/standards/ozone/s_o3_cr_sp.html"
http://epa.gov/ttn/naaqs/standards/ozone/s_o3_cr_sp.html .

EPA (2008a).  Integrated Science Assessment for Oxides of Nitrogen -
Health Criteria.  National Center for Environmental Assessment, Research
Triangle Park, NC.  Available at:
http://cfpub.epa.gov/ncea/cfm/recordisplay.cfm?deid=194645.

EPA (2008b).  Risk and Exposure Assessment to Support the Review of the
NO2 Primary National Ambient Air Quality Standard. Office of Air Quality
Planning and Standards, Research Triangle Park, NC. Available at:

  HYPERLINK
"http://www.epa.gov/fedrgstr/EPA-AIR/2009/July/Day-15/a15944.pdf"
http://www.epa.gov/fedrgstr/EPA-AIR/2009/July/Day-15/a15944.pdf

EPA (2008c).  Risk and Exposure Assessment to Support the Review of the
NO2 Primary National Ambient Air Quality Standard: Appendices.
EPA-452/R-08-008b.

Available at:   HYPERLINK
"http://www.epa.gov/ttn/naaqs/standards/nox/data/20081121_NO2_REA_final_
appendices.pdf"
http://www.epa.gov/ttn/naaqs/standards/nox/data/20081121_NO2_REA_final_a
ppendices.pdf .

EPA (2008d).  National Air Quality: Status and Trends thought 2007, RTP,
NC, 48pp.

Finlayson-Pitts and Pitts (1999)  Chemistry of the Upper and Lower
Atmosphere, Academic Press, 1999.

Goodman SN. (1993).  p values, hypothesis tests, and likelihood:
implications for epidemiology of a neglected historical debate. American
Journal of Epidemiology 137:485–496.

Goodman SN. (1999).  Towards evidence-based medical statistics. 1: the P
value fallacy. Annals of Internal Medicine 130:995–1004.

Goodman, JE, Chandalia JK, Thakali S, Seeley M.  (2009).  Meta-analysis
of nitrogen dioxide exposure and airway hyper-responsiveness in
asthmatics.    HYPERLINK
"javascript:AL_get(this,%20'jour',%20'Crit%20Rev%20Toxicol.');" \o
"Critical reviews in toxicology."  Crit. Rev. Toxicol.  39:719-742.

Greenland, S. (1998) Meta-analysis. In: Rothman, K. J.; Greenland, S.,
eds. Modern epidemiology.  Philadelphia, PA: Lippincott Williams &
Wilkins; pp. 643-673.

Health Effects Institute (2003).  Commentary on revised analyses of
selected studies.  In: Revised analyses of time-series studies of air
pollution and health.  Special report.  Boston, MA: Health Effects
Institute; pp. 255-290.

Hesterberg, TW, Bunn WB, McClellan RO, Hamade AK, Long CM, Valberg PA.
(2009).  Critical review of the human data on short-term nitrogen
dioxide (NO2) exposures: evidence for NO2 no-effect levels.    HYPERLINK
"javascript:AL_get(this,%20'jour',%20'Crit%20Rev%20Toxicol.');" \o
"Critical reviews in toxicology."  Crit. Rev. Toxicol.  39(9):743-781.

Hill, AB.  (1965).  The environment and disease: association or
causation? Proc. R. Soc. Med. 58: 295-300.

Howson, C, Urbach P.  (1993).  Scientific Reasoning: The Bayesian
Approach. 2nd ed. Chicago: Open Court Publishing Company.

Institute of Medicine (IOM). (2007) Improving the presumptive disability
decision-making process for veterans. Washington, DC: The National
Academies Press. Available:
http://www.nap.edu/catalog.php?record_id=11908 (11 February, 2008).

Isakov V.  (2009).  Near-Road Modeling Research.  R/S/L Modelers
Workshop, June 2009.  Available at:   HYPERLINK
"http://www.cleanairinfo.com/regionalstatelocalmodelingworkshop/archive/
2009/presentations/06%20Thurs%20AM/Vlad%20RSL2009%205-14-2009.pdf"
http://www.cleanairinfo.com/regionalstatelocalmodelingworkshop/archive/2
009/presentations/06%20Thurs%20AM/Vlad%20RSL2009%205-14-2009.pdf .

MACTEC.  (2004)  Sensitivity Analysis of PVMRM and OLM in AERMOD.
Alaska DEC, Contract No. 18-8018-04.  Final Report.  September 2004.
Available at:   HYPERLINK
"http://www.epa.gov/scram001/7thconf/aermod/pvmrm_sens.pdf"
http://www.epa.gov/scram001/7thconf/aermod/pvmrm_sens.pdf .

McCurdy TR.  1994.  Analysis of high 1 hour NO2 values and associated
annual averages using 1988-1992 data. Office of Air Quality Planning and
Standards, Research Triangle Park, NC. Available in Docket A-93-06.

Mortimer, KM, Neas LM, Dockery DW, Redline S, Tager IB. (2002).  The
effect of air pollution on inner-city children with asthma. Eur. Respir.
J. 19:699-705.

National Research Council, (1991). Rethinking the Ozone Problem in Urban
and Regional Air Pollution. National Academy Press, Washington, DC,
500pp.

OLM/ARM Workgroup. (1998).  Use of the Ambient Ratio Method (ARM) for
Estimating Ambient Nitrogen Dioxide Concentrations.  Draft for Comment.
May 27, 1998.  Available at:   HYPERLINK
"http://www.dec.state.ak.us/AIR/ap/docs/sitearm.pdf"
http://www.dec.state.ak.us/AIR/ap/docs/sitearm.pdf .

Orehek, J, Massari JP, Gayrard P, Grimaud C, Charpin J.  (1976).  Effect
of short-term low-level nitrogen dioxide exposure on bronchial
sensitivity of asthmatic patients.  J Clin Invest, 57:301-307.

Poole, C.  (2001).  Causal values. Epidemiology 12:139–41.

Riediker M, Williams R, Devlin R, Griggs T, Bromberg P.  (2003).
Exposure to particulate matter, volatile organic compounds, and other
air pollutants inside patrol cars.  Environ Sci Technol. 37:2084-2093.

Rizzo M.  2008.  Investigation of How Distributions of Hourly Nitrogen
Dioxide Concentrations Have Changed Over Time in Six Cities.  Memorandum
to the Nitrogen Dioxide NAAQS Review Docket EPA-HQ-OAR-2006-0922.
Available at:   HYPERLINK
"http://www.epa.gov/ttn/naaqs/standards/nox/data/20081124_rizzo.pdf"
http://www.epa.gov/ttn/naaqs/standards/nox/data/20081124_rizzo.pdf .

Roorda-Knape MC, Janssen NAH, De Hartog JJ, Van Vliet PHN, Harssema H,
Brunekreef B.  (1998).  Air Pollution from traffic in city districts
near major roadways.  Atmos Environ.  32(11)1921-1930.

Rothman, KJ, Greenland S., eds. (1998).  Modern epidemiology. 2nd ed.
Philadelphia, PA: Lippincott-Raven Publishers.

Royall, RM.  (1997).  Statistical Evidence: A Likelihood Paradigm.
London: Chapman and Hall.

Samet, JM. (2008).  Letter to EPA Administrator Stephen Johnson:
“Clean Air Scientific Advisory Committee’s (CASAC) Review Comments
on EPA’s Risk and Exposure Assessment to Support the Review of the NO2
Primary National Ambient Air Quality Standard.” EPA-CASAC-09-003,
December 16.

Samet, JM. (2009a). CASAC Review of integrated science assessment for
particulate matter (second external review draft, July 2009). U.S.
Environmental Protection Agency. Washington, D.C.. EPA-CASAC-10-001.

Samet, JM. (2009b).  Letter to EPA Administrator Lisa P. Jackson:
“Comments and Recommendations Concerning EPA's Proposed Rule for the
Revision of the National Ambient Air Quality Standards (NAAQS) for
Nitrogen Dioxide.” EPA-CASAC-09-014, September 9.

Savitz, DA, Tolo KA, Poole C. (1994).  Statistical significance testing
in the American Journal of Epidemiology, 1970–1990. American Journal
of Epidemiology 139:1047–1052.

SCAQMD.  (2000).  Multiple Air Toxics Exposure Study in the South Coast
Air Basin (MATES-II).  Available at:   HYPERLINK
"http://www.aqmd.gov/matesiidf/matestoc.htm"
http://www.aqmd.gov/matesiidf/matestoc.htm .

SCAQMD.  (2008).  Final Report: Multiple Air Toxics Exposure Study in
the South Coast Air Basin (MATES III).  Available at:   HYPERLINK
"http://www.aqmd.gov/prdas/matesIII/MATESIIIFinalReportSept2008.html"
http://www.aqmd.gov/prdas/matesIII/MATESIIIFinalReportSept2008.html .

Schildcrout, JS, Sheppard L, Lumley T, Slaughter JC, Koenig JQ, Shapiro
GG.  (2006).   Ambient air pollution and asthma exacerbations in
children: an eight-city analysis.  Am J Epidemiol.  164:505-517.

Singer BC, Hodgson AT, Hotchi T, Kim JJ (2004).  Passive measurement of
nitrogen oxides to assess traffic-related pollutant exposure for the
East Bay Children’s Respiratory Health Study.  Atmos Environ.
38:393-403.

US EPA.  (2008).  Emission and Air Quality Modeling Tools for
Near-Roadway Applications.  EPA/600/R-09/001.  Available at:
HYPERLINK
"http://nepis.epa.gov/Exe/ZyNET.exe/P1003MVX.TXT?ZyActionD=ZyDocument&Cl
ient=EPA&Index=2006+Thru+2010&Docs=&Query=EPA%2F600%2FR-09%2F001&Time=&E
ndTime=&SearchMethod=3&TocRestrict=n&Toc=&TocEntry=&QField=pubnumber%5E%
22600R09001%22&QFieldYear=&QFieldMonth=&QFieldDay=&UseQField=pubnumber&I
ntQFieldOp=1&ExtQFieldOp=1&XmlQuery=&File=D%3A%5Czyfiles%5CIndex%20Data%
5C06thru10%5CTxt%5C00000007%5CP1003MVX.txt&User=ANONYMOUS&Password=anony
mous&SortMethod=h%7C-&MaximumDocuments=10&FuzzyDegree=0&ImageQuality=r75
g8/r75g8/x150y150g16/i425&Display=p%7Cf&DefSeekPage=x&SearchBack=ZyActio
nL&Back=ZyActionS&BackDesc=Results%20page&MaximumPages=1&ZyEntry=1&SeekP
age=x"  http://nepis.epa.gov/

Vardoulakis, S, Gonzalez-Flesca N, Fisher BEA, Pericleous K.  (2004).
Spatial variability of air pollution in the vicinity of a permanent
monitoring station in central Paris.  Atmos. Environ.  39:2725-2736.

Watkins, N. and Thompson, R. (2008). NOX Network Review and Background.
Memo to the NO2 NAAQS docket.

Watson A, Bates R, Kennedy D, ed. (1988).  Air Pollution, the
Automobile, and Public Health, The National Academies Press, 1988.

Westerdahl D, Fruin S, Sax T, Fine PM, Sioutas C.  (2005).  Mobile
platform measurements of ultrafine particles and associated pollutant
concentrations on freeways and residential streets in Los Angeles. Atmos
Environ.  39:3597-3610.

  It should be noted that use of smaller data subsets will markedly
reduce statistical power to detect associations and also reduce the
precision on any findings when the data are stratified by season.

 hÿ

Š

 hÿ

/

0

1

2

 hÿ

 hÿ

 hÿ

 hÿ

#2

4

5

g

h

i

ƒ

„

…

‡

ˆ

‰

Š

‹

Œ

¨

©

ª

«

®

â

ã

ä

þ

ÿ

 hÿ

 hÿ

 hÿ

 hÿ

.

/

- hÿ

 hÿ

 hÿ

 hÿ

%/

0

1

3

4

=

>

?

Y

Z

[

]

^

_

`

a

b

~

€

ƒ

„

’

“

”

®

¯

°

²

³

´

µ

¶

·

Ó

 hÿ

 hÿ

 hÿ

 hÿ

`

µ

ᴇഀࣆȀь⒆਀ᰇഀࣆȀͰ⒆਀᠀Ó

Ô

Õ

Ö

Ø

Ù

Ý

Þ

ß

ù

ú

û

ý

þ

ÿ

j;

 hÿ

 hÿ

 hÿ

 hÿ

j/

 hÿ

 hÿ

j¸

 hÿ

 hÿ

 hÿ

 hÿ

j¬

 hÿ

 hÿ

 hÿ

 hÿ

 hÿ

 hÿ

 hÿ

 hÿ

 hÿ

 hÿ

j

 hÿ

 hÿ

 hÿ

 hÿ

 hÿ

 hÿ

 hÿ

- hÿ

 hÿ

 hÿ

 hÿ

 hÿ

 hÿ

 hÿ

 hÿ

 hÿ

 hÿ

 hÿ

 hÿ

 hÛ

 h

h

  h

 h

h

  h

  h

 h

 h

h

  h

  h

 h

  h

 h

  h

  h

# h

  h

  h

 h

 h

h

h

 h

h

  h

 h

  h

h

H* h€

 h

퀁萏ː萑ﴰ葞ː葠ﴰ摧ᔜß

 h

h¤5

 h

 hš*

hús

 h

¤

¥

¦

^

_

¦

§

¨

ª

²

·

Ñ

â

í

 h

_

i

m

摧⾕Ä

ༀ킄ᄂや㟽$␸䠀$葞ː葠ﴰ摧⾕Ä

 h

 h

 h_

쀁ȡ萏ː葞ː摧⾕Ä

萏ː萑ﴰ葞ː葠ﴰ摧僿ó

ༀ킄ᄂや㟽$␸䠀$葞ː葠ﴰ摧⾕Ä

 h

 h

 h³

萏ː萑ﴰ葞ː葠ﴰ摧⾕Ä	㜀$␸䠀$摧⾕Ä

ༀ킄ᄂや㟽$␸䠀$葞ː葠ﴰ摧䰔$

h

摧ᣃ0	㜀$␸䠀$摧ᣃ0	㜀$␸䠀$摧ഗí	㜀$␸䠀$摧洵

 h

h

摧ḷð

%

&

q

s

w

®

¯

Û

Ü

 hÀ

hù

ࠀ萏ː葞ː摧㞝sࠀ萏ː葞ː摧织ðఀ萎ː萏֠葝ː葞֠摧ⓢ|

 hrb

H*  hrb

 hrb

 hrb

hù

 hù

hù

hù

h"

hE

 h

਀&䘋
옍ćŨ㠁؄萏и葞и摧姴ఀ萏ː萑ﴰ葞ː葠ﴰ摧姴᐀

hE

hE

hE

.

h"

ༀ킄ᄂ킄㜂$␸䠀$葞ː葠ː摧ӹÊ

 h

萏ː葞ː摧ᓖQ

 hÙ

%

☊଀ెᄀや㟽$␸䠀$葠ﴰ摧ᓖQ

!

$

'

0

Z

[

Ñ

Ó

Ô

‹

Œ

.%

&

Œ

Ä

ༀ킄㜂$␸䠀$葞ː摧湽

摧湽

萏ː葞ː摧湽

਀&䘋	옍ćŨ㠁؄萏и葞и摧湽

萑ﴰ葠ﴰ摧湽

ༀ킄ᄂや㟽$␸䠀$葞ː葠ﴰ摧ᓖQကŒ

›

œ

§

¨

°

±

»

¼

Â

Ä

Ì

h}n

h}n

h}n

h}n

 h

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

萏ː萑ﴰ葞ː葠ﴰ摧湽

摧湽

☊଀ๆᄀや㟽$␸䠀$葠ﴰ摧湽

萏ː葞ː摧湽

ༀ킄㜂$␸䠀$葞ː摧湽

฀ꂄ༅ꂄ㜅$␸䠀$葝֠葞֠摧湽

h}n

h}n

h}n

h}n

h}n

h}n

h}n

 h

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

h}n

萑ː葠ː摧湽

萏ː萑ﴰ葞ː葠ﴰ摧湽

摧湽

萏ː葞ː摧湽

h}n

h}n

H* h"

h}n

h}n

h}n

 h

h}n

h}n

h}n

h}n

 h

h

摧⎚Þ

摧㩢ó

 h"

h

÷òîæîáîáîáîæîáîáîáîÝÕîÍÅººÅººî¦ÕžÍºº
žºžº“†“†“Ý h"

 h"

  h"

h"

 h"

h"

萏ː萑ﴰ葞ː葠ﴰ摧澮Ä

h"

 h"

 h"

H* h"

 h"

 h"

  h"

 h"

 h"

 h"

! h"

 h"

  h"

h"

 h"

 h"

 h"

h"

 h"

 h"

 h"

 h"

 h"

 h"

h»f

퀁摧暻

萑ː葠ː摧祧é

OJ

QJ

^J

.

/

`

a

.

/

7

:

¢

£

_

b

m

Õ

Ö

 hÛ

 hÛ

. EPA has addressed NAM's concerns in the final notice and this RTC. EPA
has fully satisfied the requirements of the Information Quality Act, and
has acted consistently with EPA's Information Quality Guidelines.

 There were no upper percentile values less than the 95th percentile
determined as statistically significant.

 Only Los Angeles (2001-2003), Other CMSA/MSA (2001-2003), and Provo
(2004-2006) had as is air quality more similar with a 1-hour 99th
percentile 100 ppb standard level out of a total of 38
location/year-group combinations.

 When considering the two forms (98th and 99th), the 19 locations, and
two year-groups (2001-2003 and 2004-2006), 61/76=80% needed a downward
adjustment to meet the 50 ppb level.

 Note that to generate the ratio, the m factor has a value of 1 added to
it.  See REA equation (7-2).

To measure maximum concentrations, the Administrator proposed monitoring
provisions that would require monitors within 50 meters of major roads
and to allow the Regional Administrator to require additional monitors
in situations where maximum concentrations would be expected to occur in
locations other than near major roads (e.g., due to the influence of
multiple smaller roads and/or stationary sources).

 The most current American Housing Survey (  HYPERLINK
"http://www.census.gov/hhes/www/housing/ahs/ahs.html"
http://www.census.gov/hhes/www/housing/ahs/ahs.html ) is from 2007 and
lists a higher fraction of housing units within the 300 foot boundary.
According to Table 1A-6 from that report
(http://www.census.gov/hhes/www/housing/ahs/ahs07/tab1a-6.pdf), out of
128.2 million total housing units in the United States, about 20 million
were reported by the surveyed occupant or landlord as being within 300
feet of a 4-or-more lane highway, railroad, or airport.  That
constitutes 15.6% of the total housing units in the U.S.  Assuming equal
distributions, with a current population of 306.3 million, that means
that there would be 47.8 million people meeting the 300 foot criteria.

 These groups also cited a recent study by Karr et al. (Influence of
Ambient Air Pollutant Sources on Clinical Encounters for Infant
Bronchiolitis. Am. J. Respir. Crit. Care. Med. (2009), Aug. 27, epub
ahead of print).


[Federal Register Volume 82, Number 117 (Tuesday, June 20, 2017)]
[Notices]
[Page 28221]
[FR Doc No: 2017-12797]

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

DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

[Docket Number FRA-2017-0044]

Petition for Waiver of Compliance

    Under part 211 of Title 49 Code of Federal Regulations (CFR), this
document provides the public notice that on November 28, 2016, the
Village of New Lenox, IL, (Village) petitioned the Federal Railroad
Administration (FRA) for a waiver of compliance from certain provisions
of the Federal railroad safety regulations contained at 49 CFR 222.9.
FRA assigned the petition Docket Number FRA-2017-0044.
    The Village is seeking a waiver from the definition of a non-
traversable curb in 49 CFR 222.9, to allow for quiet zone risk
reduction credit for the 6-inch high medians that extend approximately
330 feet to the west of the Laraway Road crossing (DOT #478794H) and
655 feet to the east of the crossing. Specifically, New Lenox is
requesting an exception to the requirement that non-traversable curbs
may be used only at locations where highway speeds do not exceed 40
mph.
    The Village asserts the Laraway Road crossing is under the
jurisdiction of the Will County Department of Transportation, which is
unwilling to reduce the current 45 mph highway speed limit at the
crossing. Therefore, while the current highway speed limit would likely
remain unchanged, the Village notes that the Will County Division of
Transportation would be willing to install 40-mph speed advisory signs
approximately 300 feet in advance of the Laraway Road crossing for both
eastbound and westbound highway traffic.
    A copy of the petition, as well as any written communications
concerning the petition, is available for review online at
www.regulations.gov and in person at the U.S. Department of
Transportation's (DOT) Docket Operations Facility, 1200 New Jersey Ave.
SE., W12-140, Washington, DC 20590. The Docket Operations Facility is
open from 9 a.m. to 5 p.m., Monday through Friday, except Federal
Holidays.
    Interested parties are invited to participate in these proceedings
by submitting written views, data, or comments. FRA does not anticipate
scheduling a public hearing in connection with these proceedings since
the facts do not appear to warrant a hearing. If any interested parties
desire an opportunity for oral comment and a public hearing, they
should notify FRA, in writing, before the end of the comment period and
specify the basis for their request.
    All communications concerning these proceedings should identify the
appropriate docket number and may be submitted by any of the following
methods:
     Web site: http://www.regulations.gov. Follow the online
instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: Docket Operations Facility, U.S. Department of
Transportation, 1200 New Jersey Avenue SE., W12-140, Washington, DC
20590.
     Hand Delivery: 1200 New Jersey Avenue SE., Room W12-140,
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal Holidays.
    Communications received by August 4, 2017 will be considered by FRA
before final action is taken. Comments received after that date will be
considered if practicable.
    Anyone can search the electronic form of any written communications
and comments received into any of our dockets by the name of the
individual submitting the comment (or signing the document, if
submitted on behalf of an association, business, labor union, etc.).
Under 5 U.S.C. 553(c), DOT solicits comments from the public to better
inform its processes. DOT posts these comments, without edit, including
any personal information the commenter provides, to
www.regulations.gov, as described in the system of records notice (DOT/
ALL-14 FDMS), which can be reviewed at https://www.transportation.gov/privacy. See also https://www.regulations.gov/privacyNotice for the
privacy notice of regulations.gov.

Robert C. Lauby,
Associate Administrator for Railroad Safety Chief Safety Officer.
[FR Doc. 2017-12797 Filed 6-19-17; 8:45 am]
 BILLING CODE 4910-06-P