Notice2022-25588
North American Electric Reliability Corporation; Order Approving Reliability Standards FAC-001-4 and FAC-002-4
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Published
November 23, 2022
Issuing agencies
Energy DepartmentFederal Energy Regulatory Commission
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<title>Federal Register, Volume 87 Issue 225 (Wednesday, November 23, 2022)</title>
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[Federal Register Volume 87, Number 225 (Wednesday, November 23, 2022)]
[Notices]
[Pages 71602-71605]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-25588]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. [RD22-5-000]
North American Electric Reliability Corporation; Order Approving
Reliability Standards FAC-001-4 and FAC-002-4
Before Commissioners: Richard Glick, Chairman; James P. Danly,
Allison Clements, Mark C. Christie, and Willie L. Phillips;
1. On June 14, 2022, the North American Electric Reliability
Corporation (NERC), the Commission-certified Electric Reliability
Organization (ERO), submitted a petition seeking approval of proposed
Reliability Standards FAC-001-4 (Facility Interconnection Requirements)
and FAC-002-4 (Facility Interconnection Studies) (collectively, the FAC
Reliability Standards).\1\ As discussed in this order, pursuant to
section 215(d)(2) of the Federal Power Act (FPA), we approve the FAC
Reliability Standards, their associated violation risk factors and
violation severity levels, the proposed implementation plan, and the
retirement of the currently effective versions of the FAC Reliability
Standards immediately prior to the effective date of the revised FAC
Reliability Standards.\2\ As discussed in this order, we determine that
the FAC Reliability Standards improve upon the currently effective
Reliability Standards FAC-001-3 and FAC-002-3 by ensuring that changes
to existing interconnected Facilities that have reliability impacts are
properly addressed in interconnection requirements and studies.
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\1\ The proposed Reliability Standards are not attached to this
order. The proposed Reliability Standards are available on the
Commission's eLibrary document retrieval system in Docket No. RD22-
5-000 and on the NERC website, <a href="http://www.nerc.com">www.nerc.com</a>.
\2\ 16 U.S.C. 824o(d)(2).
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I. Background
A. Section 215 and Mandatory Reliability Standards
2. Section 215 of the FPA provides that the Commission may certify
an ERO, the purpose of which is to develop mandatory and enforceable
Reliability Standards, subject to Commission review and approval.\3\
Pursuant to section 215 of the FPA, the Commission established a
process to select and certify an ERO,\4\ and subsequently certified
NERC.\5\
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\3\ 16 U.S.C. 824o.
\4\ Rules Concerning Certification of the Elec. Reliability
Org.; & Procedures for the Establishment, Approval, & Enforcement of
Elec. Reliability Standards, Order No. 672, 114 FERC ] 61,104, order
on reh'g, Order No. 672-A, 114 FERC ] 61,328 (2006).
\5\ N. Am. Elec. Reliability Corp., 116 FERC ] 61,062, order on
reh'g and compliance, 117 FERC ] 61,126 (2006), order on compliance,
118 FERC ] 61,030, order on clarification and reh'g, 119 FERC ]
61,046 (2007), aff'd sub nom. Alcoa Inc. v. FERC, 564 F.3d 1342
(D.C. Cir. 2009).
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B. NERC Petition and Proposed FAC Reliability Standards
3. On June 14, 2022, NERC submitted a petition seeking approval of
the FAC Reliability Standards. NERC also requested that the Commission
approve the associated violation risk factors and violation severity
levels, the proposed implementation plan, and the retirement of the
currently effective versions of the FAC Reliability Standards
immediately prior to the effective date of the revised FAC Reliability
Standards.
4. NERC explains that the proposed modifications to the FAC
Reliability Standards stem from recommendations in the NERC Inverter-
Based Resource Performance Task Force's \6\ (IRPTF) March 2020 white
paper.\7\ Consistent with the IRPTF's recommendations, NERC proposes to
modify the FAC Reliability Standards in two ways. First, NERC proposes
to replace the term ``materially modifying,'' which is used in
Commission's interconnection
[[Page 71603]]
process,\8\ and replace it with the term ``qualified change.''
According to NERC, the IRPTF noted in its white paper that confusion
between the Commission-defined term ``Material Modification'' in the
pro forma interconnection procedures and agreements and the undefined
term ``materially modify'' in the standards ``could result in Facility
changes that are potentially significant for reliability not being
studied under the FAC standards because the changes would not have a
`material impact' on other generators in the interconnection queue.''
\9\ This is because, as used in the Commission's pro forma
interconnection procedures and agreements, Material Modifications only
refer to changes that have a ``material impact'' on other generators in
the interconnection queue, whereas in the FAC Reliability Standards,
the undefined term ``materially modify'' was used to refer to any
change that could have reliability impacts on the system. Thus, NERC
states that the term ``qualified change'' would refer to ``changes to
existing interconnected Facilities that can have reliability impacts''
and would ensure that they are ``properly addressed in interconnection
requirements and studies.'' \10\
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\6\ NERC states that the IRPTF was created after several grid
disturbances involving inverter-based resources. As part of its
work, the IRPTF completed a comprehensive review of NERC's
Reliability Standards to determine areas where the current standards
were not sufficient to address the increase in inverter-based
resources on the Bulk-Power System. See NERC Petition at 9-10.
\7\ NERC IRPTF, IRPTF Review of NERC Reliability Standards (Mar.
2020), (IRPTF White Paper), <a href="https://www.nerc.com/comm/PC/InverterBased%20Resource%20Performance%20Task%20Force%20IRPT/Review_of_NERC_Reliability_Standards_White_Paper.pdf">https://www.nerc.com/comm/PC/InverterBased%20Resource%20Performance%20Task%20Force%20IRPT/Review_of_NERC_Reliability_Standards_White_Paper.pdf</a>.
\8\ IRPTF White Paper at 1 (referring to the term ``Material
Modification,'' which is defined in the Commission's pro forma
generator interconnection procedures and agreements as those
modifications that have a material impact on the cost or timing of
any interconnection request with a later queue priority date. See,
e.g., pro forma Large Generator Interconnection Agreement, Art. 1,
Definitions).
\9\ Id. at 11.
\10\ NERC Petition at 8.
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5. Second, NERC explains that the proposed FAC Reliability
Standards identify the planning coordinator as the entity responsible
for developing a uniform definition of ``qualified change'' that
describes the changes to interconnected Facilities that must be
addressed in interconnection requirements and studies under the FAC
Reliability Standards. NERC states that planning coordinators ``are
encouraged to coordinate with other entities in developing their
definitions.'' \11\ Once the planning coordinator defines what is a
qualified change within its footprint, it must ``maintain a publicly
available definition of qualified change for the purposes of facility
interconnection.'' \12\ Finally, the proposed FAC Reliability Standards
require applicable entities within that planning coordinator's area to
include procedures for coordinating impacts of qualified changes in
their interconnection requirements and require entities seeking to make
qualified changes to adhere to the definition in their interconnection
procedures and studies.\13\
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\11\ Id. at 16.
\12\ Id. at 12.
\13\ Id.
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6. NERC proposes an implementation plan for the proposed FAC
Reliability Standards. The proposed implementation plan provides that
the proposed FAC Reliability Standards would become effective on the
first day of the first calendar quarter that is 12 months after
applicable regulatory approval and that the currently effective
versions of the standards would be retired immediately prior to the
effective date of the revised FAC Reliability Standards.\14\ Further,
the proposed implementation plan provides that, where the planning
coordinator's definition of ``qualified change'' differs from what an
applicable entity may have considered a ``materially modifying'' change
in Facility interconnection requirements or studies under the current
standards, those entities will have an additional 12 months from the
effective date to come into compliance with the revised standards. NERC
explains that this implementation timeline reflects consideration that
planning coordinators will need a reasonable period of time to develop
a definition of ``qualified change'' for their respective areas under
proposed Reliability Standard FAC-002-4 Requirement R6 and to make that
definition publicly available.\15\ NERC asserts that the proposed
implementation plan provides a reasonable period of time for entities
to comply, considering the process required for the new requirements,
and thus strikes an appropriate balance with the urgency to implement
the proposed FAC Reliability Standards.\16\
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\14\ Id., Ex. B at 2-3.
\15\ Id. at 19.
\16\ Id. at 20.
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7. Finally, NERC proposes modifications to the associated violation
risk factors and violation severity levels for these FAC Reliability
Standards. The changes are mostly clarifications in the violation
severity levels to match changes in Requirement language. One new
violation risk factor and violation severity level assignment was added
for new Requirement R6 in FAC-002-4.\17\
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\17\ Id. at Ex. E.
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II. Notice of Filing and Responsive Pleadings
8. Notice of NERC's June 14, 2022, petition was published in the
Federal Register, 87 FR 62401 (Oct. 14, 2022), with interventions and
protests due on or before October 28, 2022. None was filed.
III. Determination
9. Pursuant to section 215(d)(2) of the FPA, we approve the FAC
Reliability Standards as just, reasonable, not unduly discriminatory or
preferential and in the public interest. We conclude that the proposed
FAC Reliability Standards are an improvement over the currently
effective Reliability Standards FAC-001-3 and FAC-002-3 and will
improve Bulk-Power System reliability by helping to ensure that changes
to existing interconnected facilities that have reliability impacts are
properly addressed in interconnection requirements and studies. We find
that proposed Reliability Standard FAC-002-4 Requirement R6 will avoid
potential disputes over changes to facilities that require additional
study by authorizing the planning coordinator to define the term
``qualified change'' and requiring public posting of the definition.
Replacing ``materially modify'' with ``qualified change'' also removes
the possibility of confusion with the Commission's defined term
``Material Modification'' in its pro forma interconnection procedures
and agreements.
10. We also approve the proposed implementation plan. The
implementation plan provides that the proposed FAC Reliability
Standards would become effective on the first day of the first calendar
quarter that is 12 months after applicable regulatory approval and an
additional 12 months under certain circumstances. We find that the
proposed implementation plan provides a reasonable period of time for
entities to comply with the new requirements and strikes an appropriate
balance with the urgency to implement the proposed FAC Reliability
Standards.
11. Finally, we approve NERC's proposed clarifying revisions to the
existing violation risk factor and violation severity level assignments
for these FAC Reliability Standards, as well as the new violation risk
factor and violation severity level assignment to Requirement R6 in
FAC-002-4.
IV. Information Collection Statement
12. In compliance with the requirements of the Paperwork Reduction
Act of 1995, 44 U.S.C. 3506(c)(2)(A), the Commission is soliciting
public comment on FAC Reliability Standards; and the new collection
FERC-725D(1),\18\ which will be submitted to the Office of Management
and Budget (OMB) for a
[[Page 71604]]
review of the information collection requirements. Comments on the
collection of information are due to OMB within 60 days of the date
this order is published in the Federal Register. Respondents subject to
the filing requirements of this order will not be penalized for failing
to respond to these collections of information unless the collections
of information display a valid OMB control number.
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\18\ FERC-725D(1) is a temporary placeholder number to avoid
conflicting with the pending request already submitted to OMB
regarding FERC-725D.
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13. The information collection requirements are subject to review
by the OMB under the Paperwork Reduction Act at 44 U.S.C. 3507(d).
OMB's regulations at CFR 1320.11 require approval of certain
information collection requirements imposed by agency rules.\19\ The
Commission solicits comments on the Commission's need for this
information, whether the information will have practical utility, the
accuracy of the burden estimates, ways to enhance the quality, utility,
and clarity of the information to be collected or retained, and any
suggested methods for minimizing respondents' burden, including the use
of automated information techniques. Specifically, the Commission asks
that any revised burden or cost estimates submitted by commenters be
supported by sufficient detail to understand how the estimates are
generated.
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\19\ 5 CFR 1320 (2021).
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14. Please send comments concerning the collection of information
and the associated burden estimates to OMB through <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>, Attention: Federal Energy Regulatory Commission Desk
Officer. Please identify the OMB Control Number 1902-NEW in the subject
line.
15. Please submit copies of your comments (identified by Docket No.
RD22-5-000) to the Commission as noted below. Electronic filing through
<a href="http://www.ferc.gov">http://www.ferc.gov</a> is preferred.
Electronic Filing: Documents must be filed in acceptable native
applications and print-to-PDF, but not in scanned or picture format.
For those unable to file electronically, comments may be filed by
USPS mail or by hand (including courier) delivery.
a. Mail via U.S. Postal Service Only: Addressed to: Federal Energy
Regulatory Commission, Secretary of the Commission, 888 First Street
NE, Washington, DC 20426.
b. Hand (Including Courier) Delivery: Deliver to: Federal Energy
Regulatory Commission, 12225 Wilkins Avenue, Rockville, MD 20852.
16. Instructions: OMB submissions must be formatted and filed in
accordance with submission guidelines at: <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>; using the search function under the ``Currently Under Review
field,'' select Federal Energy Regulatory Commission, click ``submit,''
and select ``comment'' to the right of the subject collection.
17. Title: FERC-725D1, RD22-5-000, Mandatory Reliability Standards
FAC-001-4 and FAC-002-4.
18. OMB Control No.: 1902-NEW.
19. Respondents: Transmission owners, generator owners, and
planning coordinators.\20\
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\20\ The NERC Glossary, at <a href="https://www.nerc.com/pa/Stand/Glossary%20of%20Terms/Glossary_of_Terms.pdf">https://www.nerc.com/pa/Stand/Glossary%20of%20Terms/Glossary_of_Terms.pdf</a>, defines these terms. A
Transmission Owner is the entity that owns and maintains
transmission facilities. A Generator Owner is the entity that owns
and maintains generating units. A Planning Coordinator (formerly
known as a Planning Authority) is the responsible entity that
coordinates and integrates transmission facilities, service plans,
resource plans, and protection systems.
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20. Frequency of Information Collection: Once during years 1 and 2.
On occasion during year 3 and beyond.
21. Abstract: The Facility Design, Connections, and Maintenance
Reliability Standards address topics such as facility interconnection
requirements, facility ratings, system operating limits, and transfer
capabilities. At present, Reliability Standard FAC-001-003 requires
Transmission Owners and applicable Generator Owners to complete
coordinated studies for new or ``materially modified'' existing
interconnections. Reliability Standard FAC-001-4 revises that
requirement by applying it to ``qualified changes'' instead of
``materially modified'' interconnections. This revision is intended to
prevent confusion with the Commission-defined term ``Material
Modification'' in the pro forma interconnection procedures and
agreements. In this order, the Commission determines that in some
cases, a consequence of this confusion may be that reliability
inappropriately is not being studied under the FAC standards. The term
``qualified change'' would refer to changes to existing interconnected
facilities that can have reliability impacts and would help ensure that
they are properly addressed in interconnection requirements and
studies. The order also would revise Requirement R6 of existing
Reliability Standard FAC-002-3 by authorizing the planning coordinator
to define the term ``qualified change'' and requiring public posting of
the definition. The implementation of Reliability Standards FAC-001-4
and FAC-002-4 will ensure that there is appropriate coordination and
communication regarding the interconnection of facilities.
22. Necessity of Information: Mandatory.
23. Internal Review: The Commission has reviewed the changes and
has determined that the described information collection activities are
necessary. These requirements conform to the Commission's need for
efficient information collection, communication, and management within
the energy industry. The Commission has specific, objective support for
the burden estimates associated with the information collection
requirements.
24. Respondents have already provided information under 725D. The
proposed new collection FERC-725D1 would result in a minor additional
burden to planning coordinators, due to the requirement that they
develop the definition of ``qualified change'' for new and existing
interconnections of generation, transmission or electricity end user
facilities. This burden would be expected to be greater in years one
and two than in year three and beyond for FAC-002-4. No change in
burden is estimated for applicable entities for FAC-001-4 as their
responsibilities will remain the same.
25. The number of respondents below is based on an estimate of the
NERC compliance registry for planning coordinators (63). The Commission
based its paperwork burden estimates on the NERC compliance registry as
of September 16, 2022.
Public Reporting Burden: The burden and cost estimates below are
based on the increase in the reporting and recordkeeping burden imposed
by the proposed Reliability Standards. Our estimates are based on the
NERC Compliance Registry as of September 16, 2022, which indicates the
affected entities for FAC-001-2/FAC-002-2 expected to have a change in
burden, i.e., planning coordinators (63).
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Proposed Information Collection Activities Due to Docket No. RD22-5
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Number of Average number
Type \21\ and annual Total number of burden Total burden
Reliability standard FAC-002- number of responses per of responses hours per hours
4 entity entity response
(1)............ (2) (1) * (2) = (4) \22\....... (3) * (4) = (5)
(3)
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One Time Estimate Years 1 and 2
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FAC-002-4.................... PA/PC (63)..... 1 63 120 hrs.; 7,560 hrs.;
$7,200. $453,600.
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Ongoing Estimate Year 3 ongoing
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FAC-002-4.................... PA/PC (63)..... 1 63 40 hrs.; $2,520 2,520 hrs.;
$158,760.
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V. Document Availability
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\21\ PA/PC=Planning Coordinator. Note that Planning Coordinator
(PC) is the new name for Planning Authority--a term still used in
NERC's Compliance Registry.
\22\ For purpose of estimate the majority of the work on the
``qualified change'' definition for the PA/PC will be done by
--Electrical engineer (OC 17-2071) $77.02
--Information/Record clerks (OC 43-4199) $42.35
The average hourly burden for this collection is $59.69 [($77.02
+ $42.35)/2 = $59.69] and is rounded to $60.00 an hour.
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26. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
internet through the Commission's Home Page (<a href="http://www.ferc.gov">http://www.ferc.gov</a>) and
in the Commission's Public Reference Room during normal business hours
(8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street NE, Room 2A,
Washington, DC 20426.
27. From the Commission's Home Page on the internet, this
information is available on eLibrary. The full text of this document is
available on eLibrary in PDF and Microsoft Word format for viewing,
printing, and/or downloading. To access this document in eLibrary, type
the docket number excluding the last three digits of this document in
the docket number field.
28. User assistance is available for eLibrary and the Commission's
website during normal business hours from the Commission's Online
Support at (202) 502-6652 (toll free at 1-866-208-3676) or email at
<a href="/cdn-cgi/l/email-protection#781e1d0a1b17161411161d0b0d0808170a0c381e1d0a1b561f170e"><span class="__cf_email__" data-cfemail="7a1c1f081915141613141f090f0a0a15080e3a1c1f0819541d150c">[email protected]</span></a>, or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at
<a href="/cdn-cgi/l/email-protection#760603141a1f15580413101304131815130419191b361013041558111900"><span class="__cf_email__" data-cfemail="93e3e6f1fffaf0bde1f6f5f6e1f6fdf0f6e1fcfcfed3f5f6e1f0bdf4fce5">[email protected]</span></a>.
The Commission orders:
The Commission hereby approves Reliability Standards FAC-001-4 and
FAC-002-4, their associated violation risk factors and violation
severity levels, implementation plan, and the retirement of the
currently effective Reliability Standards FAC-001-3 and FAC-002-3
immediately prior to the effective date of the revised Reliability
Standards, as discussed in the body of this order.
By the Commission.
Issued: November 17, 2022.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2022-25588 Filed 11-22-22; 8:45 am]
BILLING CODE 6717-01-P
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