Notice2025-18393
Before Commissioners: David Rosner, Chairman; Lindsay S. See and Judy W. Chang; North American Electric Reliability Corporation: Order Approving Extreme Cold Weather Reliability Standard EOP-012-3 and Directing Data Collection
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Published
September 23, 2025
Issuing agencies
Energy DepartmentFederal Energy Regulatory Commission
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<title>Federal Register, Volume 90 Issue 182 (Tuesday, September 23, 2025)</title>
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[Federal Register Volume 90, Number 182 (Tuesday, September 23, 2025)]
[Notices]
[Pages 45761-45768]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-18393]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. RD25-7-000]
Before Commissioners: David Rosner, Chairman; Lindsay S. See and
Judy W. Chang; North American Electric Reliability Corporation: Order
Approving Extreme Cold Weather Reliability Standard EOP-012-3 and
Directing Data Collection
1. On April 10, 2025, the North American Electric Reliability
Corporation (NERC), the Commission-certified Electric Reliability
Organization (ERO), submitted a petition seeking approval of proposed
Reliability Standard EOP-012-3 (Extreme Cold Weather Preparedness and
Operations). As discussed in this
[[Page 45762]]
order, we approve proposed Reliability Standard EOP-012-3, its
associated violation risk factors and violation severity levels, the
revised defined term Generator Cold Weather Constraint declaration, and
the proposed retirement of Reliability Standard EOP-012-2 immediately
prior to the effective date of proposed Reliability Standard EOP-012-
3.\1\
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\1\ 16 U.S.C. 824o(d)(2).
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2. As the Commission has previously stated, ``It is essential to
the reliable operation of the Bulk-Power System to `ensure enough
generating units will be available during the next cold weather event.'
'' \2\ When extreme cold weather events such as Winter Storms Uri or
Elliott occur, the Bulk-Power System cannot operate reliably without
adequate generation availability. Proposed Reliability Standard EOP-
012-3 improves upon the mandatory and effective Standard EOP-012-2 by
enhancing the requirements for generator cold weather preparedness and
Generator Cold Weather Constraint declarations and by making other
improvements consistent with the Commission's directives in its June
2024 Order to help ensure that adequate generation is available during
extreme cold weather.\3\ Accordingly, we find that proposed Reliability
Standard EOP-012-3 is just, reasonable, not unduly discriminatory or
preferential, and in the public interest.
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\2\ N. Am. Elec. Reliability Corp., 187 FERC ] 61,204, at P 2
(2024) (June 2024 Order) (citing FERC, NERC, and Regional Entity
Staff, The February 2021 Cold Weather Outages in Texas and the South
Central United States 189 (Nov. 16, 2021), <a href="https://www.ferc.gov/media/february-2021-cold-weather-outages-texas-and-south-central-united-states-ferc-nerc-and">https://www.ferc.gov/media/february-2021-cold-weather-outages-texas-and-south-central-united-states-ferc-nerc-and</a> (November 2021 Report)).
\3\ See, e.g., N. Am. Elec. Reliability Corp., 182 FERC ]
61,094, at PP 3-11 (February 2023 Order), reh'g denied, 183 FERC ]
62,034, order on reh'g, 183 FERC ] 61,222 (2023).
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3. We also modify Reliability Standard EOP-012-3's implementation
effective date so that the proposed Reliability Standard goes into
effect on October 1, 2025. Other than the implementation effective date
of the proposed Reliability Standard, we approve the remainder of
NERC's proposed implementation plan.
4. We also find it necessary that NERC confirm that Reliability
Standard EOP-012-3 adequately addresses reliability concerns related to
the generator owner constraint declarations, generator owner constraint
declaration timetable notifications, and the Extreme Cold Weather
Temperature definition, as discussed in more detail below. The
Commission previously directed NERC to collect data associated with an
earlier version of this Reliability Standard.\4\ However, additional
data is needed to determine whether the proposed Reliability Standard
addresses the reliability concerns noted above. As such, we direct
NERC, pursuant to section 39.2(d) of the Commission's regulations,\5\
to submit comprehensive biennial informational filings for a limited
period of time as explained in more detail below.
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\4\ See id. P 11.
\5\ 18 CFR 39.2(d) (2025) (``The [ERO] . . . shall provide the
Commission such information as is necessary to implement section 215
of the [FPA].'').
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I. Background
A. Section 215 and Mandatory Reliability Standards
5. 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.\6\
Reliability Standards may be enforced by the ERO, subject to Commission
oversight, or by the Commission independently.\7\ Pursuant to section
215 of the FPA, the Commission established a process to select and
certify an ERO,\8\ and subsequently certified NERC.\9\
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\6\ 16 U.S.C. 824o(c).
\7\ Id. Sec. 824o(e).
\8\ Rules Concerning Certification of the Elec. Reliability
Org.; & Procs. for the Establishment, Approval, & Enf't of Elec.
Reliability Standards, Order No. 672, 114 FERC ] 61,104, order on
reh'g, Order No. 672-A, 114 FERC ] 61,328 (2006); see also 18 CFR
39.4(b) (2025).
\9\ N. Am. Elec. Reliability Corp., 116 FERC ] 61,062, order on
reh'g & compliance, 117 FERC ] 61,126 (2006), aff'd sub nom. Alcoa,
Inc. v. FERC, 564 F.3d 1342 (D.C. Cir. 2009).
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B. Cold Weather Reliability Standards
6. In November 2021, Commission staff issued a report regarding a
February 2021 cold weather reliability event that affected Texas and
the South-Central United States, which found that the event was the
largest controlled firm load shed event in U.S. history; over 4.5
million people lost power and at least 210 people lost their lives.\10\
The November 2021 Report made 28 recommendations including, inter alia,
enhancements to the Reliability Standards to improve extreme cold
weather operations, preparedness, and coordination.\11\
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\10\ See November 2021 Report at 9.
\11\ Id. at 184-212 (sub-recommendations 1a through 1j).
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7. Based on those recommendations, NERC filed Reliability Standards
EOP-011-2 (Emergency Preparedness and Operations), IRO-10-4
(Reliability Coordinator Data Specification and Collection), and TOP-
003-5 (Operational Reliability Data) in June 2021, which the Commission
approved in August 2021.\12\ Later, in October of 2022, NERC sought
approval of Reliability Standards EOP-011-3 (Emergency Operations) and
EOP-012-1 (Extreme Cold Weather Preparedness and Operations), and three
newly defined terms (Extreme Cold Weather Temperature, Generator Cold
Weather Critical Component, and Generator Cold Weather Reliability
Event). On February 16, 2023, the Commission approved Reliability
Standards EOP-011-3 and EOP-012-1. In addition, the Commission directed
NERC to develop and submit modifications to Reliability Standard EOP-
012-1 and to submit a plan on how NERC will collect and assess data
surrounding the implementation of Standard EOP-012-1.\13\ In response,
NERC filed a petition in February 2024 seeking approval of its
responsive modifications, which the Commission approved in June
2024.\14\
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\12\ See N. Am. Elec. Reliability Corp., 176 FERC ] 61,119
(2021).
\13\ See February 2023 Order, 182 FERC ] 61,094 at PP 3-11.
\14\ See June 2024 Order, 187 FERC ] 61,204.
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8. While approving Reliability Standard EOP-012-2, the Commission
directed NERC to make modifications to the Standard within nine months
to: (1) address concerns related to the ambiguity of the defined term
Generator Cold Weather Constraint; (2) ensure NERC receives, reviews,
evaluates, and confirms the validity of each Generator Cold Weather
Constraint; (3) shorten and clarify the corrective action plan
implementation timelines and deadlines in Requirement R7; (4) ensure
that extensions of corrective plan implementation deadlines beyond the
maximum timeframe are pre-approved by NERC; and (5) implement more
frequent reviews of the Generator Cold Weather Constraint declarations
to verify they remain valid.\15\
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\15\ Id. P 3.
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C. NERC's Petition and Proposed Reliability Standard EOP-012-3
9. On April 10, 2025, in response to the Commission's June 2024
Order, NERC filed a petition seeking approval of proposed Reliability
Standard EOP-012-3,\16\ its associated violation risk factors and
violation severity levels, the revised defined term Generator Cold
Weather Constraint declaration, and the proposed retirement of Standard
EOP-012-2 immediately prior to the effective
[[Page 45763]]
date of proposed EOP-012-3.\17\ NERC explains that proposed Reliability
Standard EOP-012-3 further improves on the approved generator cold
weather preparedness in EOP-012-2 through enhanced and expanded
requirements that would ensure that entities are implementing
corrective actions to address known issues affecting their ability to
operate reliably in cold weather in a timely manner.\18\ NERC states
that proposed Reliability Standard EOP-012-3 is consistent with the
Commission's June 2024 Order and provides an improved framework for the
identification, validation, and periodic review of Generator Cold
Weather Constraint declarations.\19\
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\16\ The proposed Reliability Standard is not attached to this
order. The proposed Reliability Standard is available on the
Commission's eLibrary document retrieval system in Docket No. RD25-
7-000 and on the NERC website, <a href="http://www.nerc.com">www.nerc.com</a>.
\17\ NERC Petition at 1-4.
\18\ Id. at 2.
\19\ Id.
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10. The proposed Reliability Standard contains nine requirements
and one attachment; proposed Requirements R1 through R8 are carried
over and modified from the prior version of the Standard, and
Requirement R9 and Attachment 1 are new.\20\ NERC explains that the
modifications and additions clarify and improve the Reliability
Standard for generator cold weather preparedness that would advance the
reliability of the Bulk-Power System during future winter seasons.\21\
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\20\ Id. at 23-24.
\21\ Id. at 24.
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11. NERC proposes a revised definition of the term Generator Cold
Weather Constraint for inclusion in the NERC Glossary. Under prior
versions of the Reliability Standard, generator owners were able to
decline implementing one or more actions in a corrective action plan to
address freeze protection issues or measures on existing or new
equipment. While generator owners are still able to do so in proposed
Reliability Standard EOP-012-3, NERC explains its proposed
modifications add clarity and remove references to ``cost,''
``reasonable cost,'' ``unreasonable cost,'' and ``good business
practices.'' \22\
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\22\ Id. at 26-27.
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12. NERC asserts that proposed Reliability Standard EOP-012-3,
Requirement R1 clarifies the calculation of the Extreme Cold Weather
Temperature for an applicable generating unit.\23\ Proposed Requirement
R1, Part 1.1 clarifies that generator owners have the flexibility to
exercise judgement in how they address missing or invalid values in
their data sets when calculating the Extreme Cold Weather
Temperature.\24\ NERC notes that generator owners would be expected to
document how they accounted for any gaps in weather data, and this
documentation would be reviewed during compliance monitoring
activities.\25\ NERC proposes a compliance abeyance period for
Requirement R1 during which NERC would monitor the implementation of
this requirement and identify, as appropriate, any revisions to the
Extreme Cold Weather Temperature formula.\26\
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\23\ Id. at 27.
\24\ Id. at 30 (noting that weather data sets spanning multiple
years will likely contain gaps in hourly values).
\25\ Id.
\26\ Id. at 30-31.
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13. Proposed Reliability Standard EOP-012-3, Requirement R2 revises
the cold weather operational capability requirements for new bulk
electric system generating units to remove the option to develop a
corrective action plan to address operational capability issues. In
response to the Commission's June 2024 Order, NERC revised Requirement
R2 to state that new generating units entering commercial operation on
or after October 1, 2027, would either need to meet more stringent
freeze protection measures called for new generation or declare a
Generator Cold Weather Constraint that prevents them from doing so in
accordance with Requirement R8.\27\ NERC states that this modification
is consistent with the Commission's directive because new generating
units entering commercial operation on or after October 1, 2027 would
have to either complete any corrective measures that are needed prior
to the commercial operation date or delay the commercial operation date
until those corrective measures are completed.\28\
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\27\ Id. at 33 (clarifying that generator owners would not be
required to develop or complete a corrective action plan ahead of
entering commercial operation).
\28\ Id.
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14. Proposed Reliability Standard EOP-012-3, Requirement R3
contains several non-substantive, stylistic, and clarifying revisions,
such as adding the word ``generating'' before the word ``unit(s)'' in
each instance for clarity and consistency, consistent with revisions
made throughout the proposed Standard.\29\
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\29\ Id. at 34.
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15. Proposed Reliability Standard EOP-012-3, modifies Requirement
R6 by adding Parts 6.1 and 6.3.5.1 to clarify the timeline in which
generator owners must develop and implement a corrective action plan
for a generating unit that experienced a Generator Cold Weather
Reliability Event.\30\ NERC notes that this revision is consistent with
the Commission's suggestion that NERC require generator owners to
implement corrective actions prior to the next winter season.\31\ Part
6.2 adds clarification as to the extent of review that is required when
generator owners conduct a review of other generating units in their
fleets to determine susceptibility to the same freezing issues.\32\
Part 6.3 specifies the required contents of a corrective action plan
developed in connection with Requirement R6.\33\ Part 6.3.5 is a new
requirement part that establishes clear timelines for the
implementation of corrective action plans for Generator Cold Weather
Reliability Events.\34\ For corrective action plans addressing other
generating units in a generator owner's fleet that may be susceptible
to freezing issues, the generator owner would be required to implement
corrective actions within 24 months of their review or no later than 36
calendar months following the Generator Cold Weather Reliability
Event.\35\ Part 6.4 is a new requirement that requires a generator
owner to seek approval by the compliance enforcement authority (CEA)
for any corrective action plan extensions.\36\ Part 6.5 is a new
requirement that allows generators to declare a Generator Cold Weather
Constraint that prevents them from implementing freeze protection
measures in accordance with Requirement R8.
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\30\ Id. at 39 (citing June 2024 Order, 187 FERC ] 61,204 at P
68).
\31\ Id. at 40 (citing June 2024 Order, 187 FERC ] 61,204 at P
68).
\32\ Id.
\33\ Id. at 40-41.
\34\ Id. at 41 (citing June 2024 Order, 187 FERC ] 61,204 at P
68).
\35\ Id. at 41-42.
\36\ Id. at 42-43 (citing June 2024 Order, 187 FERC ] 61,204 at
P 70). The CEA is typically, but not exclusively, a Regional Entity.
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16. Proposed Reliability Standard EOP-012-3, Requirement R7, Part
7.1 specifies the minimum contents of a corrective action plan and
clarifies the implementation timeline that would apply for implementing
new freeze protection measures (48 months) and remedying issues with
existing freeze protection measures (24 months).\37\ Parts 7.1.2 and
7.1.4 would require the generator owner to identify any operating
limitations on the generating unit or impacts to the cold weather
preparedness plan that would apply until implementation of the
corrective actions identified in the corrective
[[Page 45764]]
action plan is completed.\38\ Part 7.2 specifies that if a generator
owner determines that it is unable to complete one or more actions in
its corrective action plan in the allotted timeframe, then it must
submit a corrective action plan extension request to the CEA for
approval; however, it does not require the generator owner to inform
applicable reliability entities such as the reliability coordinator and
the balancing authority of generation limitations during the corrective
action plan extension period.\39\
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\37\ Id. at 48 (citing June 2024 Order, 187 FERC ] 61,204 at P
76).
\38\ Id. at 49 (stating that this requirement is currently
included in Reliability Standard EOP-012-2, Requirement R6 but only
for corrective action plans developed in response to Generator Cold
Weather Reliability Events).
\39\ Id. at 50.
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17. NERC explains that proposed Reliability Standard EOP-012-3,
Requirement R8 addresses prior ambiguities regarding the defined term
Generator Cold Weather Constraint and its associated criteria. NERC
provides a framework for ERO oversight to receive, review, evaluate,
and approve the declared Generator Cold Weather Constraints, and
includes a new Attachment 1 to address and guide generator owners in
the identification of Generator Cold Weather Constraints.\40\ In
addition, the framework for ERO oversight includes review of a
generating unit's constraint declaration when experiencing a Generator
Cold Weather Reliability Event with the same cause of a previous
Generator Cold Weather Reliability Event.
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\40\ Id. at 51.
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18. Proposed Attachment 1 expressly defines, in a list, the types
of circumstances that would qualify as a Generator Cold Weather
Constraint.\41\ One specific known limitation is the low temperature
operability of wind turbine towers manufactured prior to October 1,
2029, and entered commercial operation prior to October 1, 2031.\42\
Attachment 1 also lists possible case-by-case Generator Cold Weather
Constraint declarations; NERC states that providing this list provides
additional guidance and clarification to entities on the type of
circumstances that may preclude the implementation of freeze protection
measures on their generating unit. One example is instances in which
the cost of retrofitting a generating unit would be unduly burdensome
such that it would retire prematurely or cancel plans to finish the
development of a new generating unit.\43\ NERC clarifies that in all
instances, the CEA would be responsible for reviewing the Generator
Cold Weather Constraint to confirm its validity.\44\ If the CEA
determines that a Generator Cold Weather Constraint is not valid, the
generator owner would be provided with a timely response so that it may
take the appropriate measures to provide the necessary operational
capability for its generating unit.\45\
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\41\ Id. at 52 (stating that the Standard also provides for
circumstances which could constitute a Generator Cold Weather
Constraint, depending on specific facts and circumstances).
\42\ Id. at 54 (noting that this limitation should not serve as
the basis for a Generator Cold Weather Constraint indefinitely).
\43\ Id. at 58.
\44\ Id. at 53.
\45\ Id. at 59.
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19. Proposed Reliability Standard EOP-012-3, Requirement R9
addresses the periodic review of Generator Cold Weather Constraint
declarations.\46\ The provision requires generator owners to review all
validated Generator Cold Weather Constraints at least once every 36
calendar months to ensure the constraint remains valid.\47\
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\46\ Id. at 62.
\47\ Id. at 62-63 (citing June 2024 Order, 187 FERC ] 61,204 at
P 94).
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20. NERC proposes an effective date for Reliability Standard EOP-
012-3 of October 1, 2025, the first day of the first calendar quarter
that is three months following regulatory approval, or as otherwise
determined by the applicable government authority, whichever is
later.\48\
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\48\ Id. at 64-65, Ex. B.
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II. Notice of Filing and Responsive Pleadings
21. Notice of NERC's April 10, 2025, Petition was published in the
Federal Register, 90 FR 17063 (Apr. 23, 2025), with comments, protests,
and motions to intervene due on or before May 12, 2025.
22. Public Citizen, Inc., Calpine Corporation, American Clean Power
Association, the Electric Power Supply Association, the ISO/RTO Council
(IRC), and the Union of Concerned Scientists (UCS) filed timely motions
to intervene. The IRC and UCS filed timely comments. NERC filed reply
comments.
23. Commenters raise concerns and requests for clarifications for
proposed Reliability Standard EOP-012-3, specifically the Generator
Cold Weather Constraint declaration criteria. The IRC and UCS generally
support the proposed Reliability Standard as filed but express concerns
regarding the constraint criteria in Attachment 1 of the Standard.\49\
UCS suggests modifying Attachment 1 to remove subjectivity, reduce the
burden of review on the CEAs, ensure future generators are capable of
complying with the Reliability Standard, confirm the ongoing legitimacy
of constraint declarations, and prevent conflicts of interests.
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\49\ See IRC Comments at 2-5; see also UCS Comments at 4.
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24. Specifically, UCS recommends removing criteria 5.a and 5.b in
Attachment 1 of the Reliability Standard,\50\ as UCS asserts neither
criterion is objective, unambiguous, or auditable.\51\ UCS claims that
to assess either criteria, CEAs would need to assess extensive
quantitative and qualitative data to confirm whether freeze protection
measures would cause a generator to become uneconomic or cancelled
prior to completion--which would be both time-intensive and lead to
subjective decisions. According to UCS, generator owners have received
enough notice to ``not be caught off guard'' by the requirements and
should not receive a constraint for generators unable to meet the
Standard and operate reliably.\52\ IRC also asserts that criteria 5.a
and 5.b are subjective and could lead to inconsistency as generator
owners and CEAs may not have necessary information to either attest to
or determine whether either of these constraints are valid.\53\ IRC
asks the Commission to clarify that the criteria for reviewing
constraint declarations ``must be objectively documented, with clear
guidance from NERC as to the type of documentation that would be needed
to support constraint declarations.'' \54\
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\50\ Criteria 5.a allows an entity to declare a constraint where
the implementation of feasible freeze protection measures would
result in an accelerated premature retirement without an acceptable
replacement and Criteria 5.b allows an entity to declare a
constraint where implementation of freeze protection measures would
cause the generator owner to cancel plans to finish the development
of a new generating unit. NERC Petition, Ex. A at 25.
\51\ UCS Comments at 4-5; 7-8.
\52\ Id. at 8.
\53\ IRC Comments at 3-4.
\54\ Id. at 4.
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25. UCS asks the Commission to confirm that criteria 1 and 2 in
Attachment 1 of the Reliability Standard \55\ do not add loopholes for
generators to avoid implementing freeze protection measures. UCS
asserts that the Commission and NERC should ensure these constraints
are limited to generators reaching commercial operation before the
compliance deadline and thus ensure that future equipment and designs
have the technical capability of meeting the Standard's
requirements.\56\ UCS
[[Page 45765]]
recommends that the Commission require generator owners declaring
constraints pursuant to criteria 6 \57\ to submit annual progress
reports. UCS explains that such generators may be retained even if
slated to retire if they are necessary to maintain reliable operation.
Requiring annual updates, UCS asserts, would inform NERC whether
generators are actually retiring or, if kept online, require the
generator owners to implement freeze protection measures.\58\ Finally,
UCS recommends the Commission remove references to balancing
authorities and transmission planners in criteria 5.c and 5.d \59\ and
require reliability coordinators supporting these two constraints to be
unaffiliated with the requesting generator owner.\60\ UCS reasons that
it is possible for the generator owner declaring the constraint to also
either be registered as or affiliated with the entity asked to support
the constraints validity--which would be a conflict of interest.\61\
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\55\ Criteria 1 and 2 provide constraint scenarios where freeze
protection measures would void an equipment warranty or exceed a
manufacturer's design limitation to the point it would impair or
degrade effective operation of the component or system. See NERC
Petition, Ex. A at 24.
\56\ UCS Comments at 9.
\57\ Criteria 6 provides a constraint for existing generating
units that are retiring within three calendar years of a constraint
declaration. See NERC Petition, Ex. A at 26.
\58\ UCS Comments at 10.
\59\ Criteria 5.c and 5.d permit constraints if the
implementation of freeze protection measures would reduce the
ability to provide Real Power or Reactive Power capability, summer
net dependable capacity, or net dependable capacity at peak demand
by more than three percent or a value supported by the appropriate
entity. The constraints provide examples of the appropriate entity
as transmission planners, reliability coordinators, and balancing
authorities. See NERC Petition, Ex. A at 25.
\60\ UCS Comments at 11-12.
\61\ Id. at 12-13.
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26. In its reply comments, NERC states that criteria 5.a and 5.b
are consistent with prior Commission acknowledgments on the possibility
that costs of retrofitting may be unduly burdensome in certain
instances \62\ and that NERC should provide a limited set of such
instances. NERC explains that just because facts and circumstances may
differ between generator owners declaring these constraints does not
make those declaration determinations un-auditable or subjective.
Similarly, NERC asserts that the appropriateness of constraints for new
generating units is ``a long-settled matter,'' was based on stakeholder
input throughout the standard development process, and has been in each
version of the Reliability Standard approved by the Commission.\63\
Regarding UCS's concerns on criteria 6, NERC explains that there is
already a 36 calendar month requirement for generator owners to review
their constraints. NERC adds that the proposed Standard protects
against ``attempted gamesmanship'' by requiring the generator owner to
demonstrate how the constraint applies to its circumstances and
requiring CEA approval of the constraints.\64\ NERC also states that it
is unclear how corporate affiliation alone would introduce a conflict
of interest; nevertheless, should an actual conflict arise, NERC
confirms that it will take prompt action. Finally, NERC explains that
there is a process document explaining how CEAs will review constraints
and how NERC will oversee such reviews and that NERC would provide
additional guidance as necessary.\65\
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\62\ NERC Reply Comments at 4 (quoting June 2024 Order, 187 FERC
] 61,204 at P 46).
\63\ Id. at 10.
\64\ Id. at 12.
\65\ Id. at 5.
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III. Determination
A. Procedural Matters
27. Pursuant to Rule 214 of the Commission's Rules of Practice and
Procedure, 18 CFR 385.214 (2025), the timely, unopposed motions to
intervene serve to make the entities that filed them parties to this
proceeding.
28. Rule 213(a)(2) of the Commission's Rules of Practice and
Procedure, 18 CFR 385.213(a)(2) (2025), prohibits an answer to a
protest unless otherwise ordered by the decisional authority. Pursuant
to Rule 214(d) of the Commission's Rules of Practice and Procedure, 18
CFR 385.214(d), we accept NERC's reply comments given its interest in
the proceeding, the early stage of the proceeding, and the absence of
undue prejudice or delay.
B. Substantive Matters
29. Pursuant to section 215(d)(2) of the FPA, we approve proposed
Reliability Standard EOP-012-3 as just, reasonable, not unduly
discriminatory or preferential, and in the public interest. We find
that the revised Standard improves upon the existing Standard by
providing needed clarity on and improvements upon the Standard's
requirements, which will help to advance the reliability of the Bulk-
Power System during extreme cold weather conditions.
30. Specifically, the proposed Standard will improve reliability of
the Bulk-Power System by adding requirements to ensure that: (1)
generator owners declaring a Generator Cold Weather Constraint submit
the declaration to its CEA for validation in a timely manner; (2)
corrective action plans developed due to Generator Cold Weather
Reliability Events are completed prior to the first day of the first
December following the event and that entities have a shorter timeframe
(12 months) to review similar equipment with potential risk to
identified freezing issues; (3) an approval process is in place for any
corrective action plan extension; (4) a discrete list of Generator Cold
Weather Constraints (known and case-by-case) is identified for
generator owners along with a preapproval process for all declared
constraints; and (5) a relatively shorter timeframe (36 months) is
required to review the validity of declared constraints and a process
to implement freeze protection measures for declared constraints that
are no longer valid. Furthermore, taking into consideration the urgency
for generators to be able to operate reliably at the Extreme Cold
Weather Temperature, generating units that begin commercial operation
\66\ on or after October 1, 2027, must be capable of operating at the
Extreme Cold Weather Temperature without the provision to develop any
corrective action plan.
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\66\ NERC Petition, Ex. A at 6 n.1 (defining commercial
operation in the proposed Standard as the ``indicati[on] that the
facility has received all approvals necessary for operation after
completion of initial start-up testing'').
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31. We accept the proposed Reliability Standard effective October
1, 2025. As noted above, NERC proposed that the Standard be effective
October 1, 2025 or three months after regulatory approval, whichever is
later.\67\ However, we find that, in this case, it is reasonable to
modify NERC's implementation plan, and adopt the earlier effective
date, such that the proposed Standard is in effect prior to this
upcoming winter season.\68\ Over the past four years, the Commission
has repeatedly expressed an urgency in completing the cold weather
Reliability Standards and having them implemented in a timely fashion
to address the reliability risks presented by extreme cold weather.\69\
The earlier effective date is reasonable in this instance given that
industry was
[[Page 45766]]
involved in NERC's standard development process and was made aware of
pending changes even if they did not participate. Further, NERC made
many of the proposed changes in response to the Commission's June 2024
Order directives, which industry has been aware of for over a year.
---------------------------------------------------------------------------
\67\ NERC Petition, Ex. B at 3.
\68\ The Commission has previously modified a Reliability
Standard's implementation period where it found it was reasonable
given the nature of the requirements of the proposed Reliability
Standard and it would provide enhanced security for the bulk
electric system in a timelier manner. See Supply Chain Risk Mgmt.
Reliability Standards, Notice of Proposed Rulemaking, 162 FERC ]
61,044, at P 44 (2018) (proposing to modify NERC's proposed
implementation plan).
\69\ See e.g., February 2023 Order, 182 FERC ] 61,094 at P 10
(emphasizing that industry has been aware of and alerted to the need
to prepare generating units for cold weather since at least 2011 and
that in considering an appropriate implementation period for
Reliability Standard EOP-012-1, NERC should consider how much time
industry has already had to implement freeze protection measures).
---------------------------------------------------------------------------
32. We decline to direct additional modifications to the
Reliability Standard at this time, as requested by IRC and UCS. First,
we note that IRC and UCS generally support the proposed Standard. Next,
while IRC and UCS express concerns with the Generator Cold Weather
Constraint criteria in Attachment 1, we do not believe these concerns
warrant modification of the Standard. We find that criteria 5.a and 5.b
of Attachment 1 of the proposed Reliability Standard are consistent
with Commission guidance to provide a limited set of defined
circumstances. While UCS is concerned with criteria 6 of the case-by-
case list in Attachment 1 of the proposed Standard to verify continued
validity as it pertains to generator retirements, we agree with NERC
that proposed Requirement R9 is sufficient to verify the validity of
any constraint declaration submitted based on retirement.\70\ We also
agree with NERC that having the CEA approve constraint declarations
will help ensure validity.\71\ Regarding the IRC's request for
generator clarity as to the type of documentation an entity would need
for a constraint, we note that NERC has posted a Generator Cold Weather
Constraint declaration process document to guide generator owners
through this procedure.\72\ Further, as to UCS's concern of the
possibility for a conflict of interest pertaining to constraint
declarations,\73\ we note that NERC asserts that it would take prompt
action should a conflict arise.\74\ We also find nothing in the record
that confirms that a bias from an entity would skew the results such
that constraint declarations would become invalid. Additionally, NERC
and industry have been working on various iterations of this Standard
since February 2021. We believe it is important for industry to begin
implementing the Reliability Standard fully and that the value in the
certainty of allowing entities to fully implement the Standard without
anticipation of additional modification outweighs the incremental
benefit of any modifications.
---------------------------------------------------------------------------
\70\ NERC Reply Comments at 10.
\71\ NERC Petition at 12.
\72\ See generally id., Ex. C.
\73\ UCS Comments at 12-13.
\74\ NERC Reply Comments at 11-12.
---------------------------------------------------------------------------
33. Nevertheless, pursuant to section 39.2(d) of the Commission's
regulations,\75\ we direct NERC, for a limited time, to collect and
submit to the Commission certain information described further below.
This approach would allow the proposed Reliability Standard to become
effective while also ensuring that NERC and the Commission have the
relevant information necessary to evaluate the effectiveness of the
Standard, whether it is being consistently applied across CEAs, and
whether future modifications are necessary.
---------------------------------------------------------------------------
\75\ 18 CFR 39.2(d) (``The [ERO] . . . shall provide the
Commission such information as is necessary to implement section 215
of the [FPA].'').
---------------------------------------------------------------------------
34. First, we direct NERC to submit, for each Regional Entity,
anonymized data on: (1) the number of submitted Generator Cold Weather
Constraint declarations, (2) the number of approved declarations, (3)
the aggregate MVA of approved declarations, and (4) a summary of the
rationale(s) provided for approved declarations. This data will help
the Commission quantify and understand the reliability risk to the bulk
electric system, determine the effectiveness of the Generator Cold
Weather Constraint criteria in Attachment 1, assess technological gaps
(regionally as well as nationwide), understand the driving factors for
declared constraints, and confirm that the Generator Cold Weather
Constraint criteria and the pre-approval process is objective,
unambiguous, and auditable.
35. Next, we direct NERC to submit a narrative analysis addressing
the following issues. First, the narrative analysis must review whether
reliability coordinators, transmission operators, and balancing
authorities (or other relevant entities) are timely notified of
Generator Cold Weather Constraint declarations and corrective action
plan extensions. In its June 2024 order, the Commission expressed
concern that without appropriate oversight, relevant registered
entities would not be informed of a generator owner's proposed updates
to their corrective action plan implementation deadlines or their
operating limitations.\76\ Although NERC notes that relevant
reliability entities have other mechanisms to obtain such information
(e.g., Reliability Standards TOP-003 and IRO-010), it is unclear how
they would know to do so. Thus, we seek information on this element of
the proposed Reliability Standard. Second, the narrative analysis shall
analyze the reliability impact, if any, of allowing generators 36
months, rather than a shorter time period, such as 24 months, to
correct known freeze related issues.\77\ In the June 2024 Order, the
Commission stated that it was ``concerned that the length of NERC's
proposed 24- and 48-month deadlines for implementing corrective actions
after a generating unit's failure [was] too long.'' \78\ Appreciating
NERC's response that staggering implementation of corrective actions
across a fleet would present logistical challenges and may not promote
an orderly and efficient implementation of corrective actions, we
believe it is essential to understand the potential reliability impacts
of allowing generators three years to correct known freeze issues.
---------------------------------------------------------------------------
\76\ See June 2024 Order, 187 FERC ] 61,204 at PP 52-54.
\77\ As part of this analysis, NERC should also assess whether
generator owners are waiting the full 36 months to correct known
freeze related issues or are being more proactive.
\78\ June 2024 Order, 187 FERC ] 61,204 at P 67.
---------------------------------------------------------------------------
36. Lastly, the narrative analysis must also assess whether the
Generator Cold Weather Constraint declarations approval process is
consistently interpreted and applied by the CEAs in a timely manner to
address the reliability risks presented by extreme cold weather;
whether the Generator Cold Weather Constraint declaration criteria in
Attachment 1 is adequately defined and clear so that applicable
entities understand what is required of them; and the reliability
impact on the Bulk-Power System due to Generator Cold Weather
Constraint declarations from each criterion in Attachment 1, in
addition to the reliability impact from approved corrective action plan
extensions. These requirements build upon the Commission's directive in
the February 2023 Order for NERC to collect data on the constraint
declaration provisions within Reliability Standard EOP-012-1 as well as
information on the actual performance of freeze protection measures
during extreme cold weather events. This data, supplemented by the
narrative analysis, will ensure that NERC and the Commission have
sufficient oversight into the use of the Generator Cold Weather
Constraint declaration process and that it is applied consistently
throughout the regions.
37. Accordingly, we direct NERC to submit comprehensive biennial
informational filings starting no later than October 2026 and ending in
October 2034. Furthermore, we direct NERC to collaborate with
Commission staff during the data collection process to ensure the data
collection and corresponding analysis is
[[Page 45767]]
comprehensive and addresses the Commission's concerns.
IV. Information Collection Statement
38. The information collection requirements contained in this Order
are subject to review by the Office of Management and Budget (OMB)
under section 3507(d) of the Paperwork Reduction Act of 1995.\79\ OMB's
regulations require approval of certain information collection
requirements imposed by agency rules.\80\ Upon approval of a collection
of information, OMB will assign an OMB control number and expiration
date. Comments on the collection of information are due within 60 days
of the date this order is published in the Federal Register.
Respondents subject to the filing requirements of this rule will not be
penalized for failing to respond to these collections of information
unless the collections of information display a valid OMB control
number.
---------------------------------------------------------------------------
\79\ 44 U.S.C. 3507(d).
\80\ 5 CFR 1320 (2025).
---------------------------------------------------------------------------
39. 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.
40. The EOP Reliability Standards are currently located in the
FERC-725S (OMB Control No. 1902-0270) collection.\81\ In Docket No.
RD25-7-000, the Commission proposes to replace the current OMB approved
Reliability Standard EOP-012-2 with proposed Standard EOP-012-3 (Table
1). Proposed Requirements R1 through R8 are carried over and modified
from the prior version of the Standard, and Requirement R9 and
Attachment 1 are new. The proposed Reliability Standard creates a
mechanism for NERC to receive, review, evaluate, and confirm validity
of each Generator Cold Weather Constraint as well as corrective action
extension requests from generator owners beyond the maximum timeframe.
In addition, the proposed Standard implements more frequent reviews of
the Generator Cold Weather Constraint declarations to verify they
remain valid. The proposed Standard also adds Attachment 1 and modifies
the Generator Cold Weather Constraint definition to address concerns
related to ambiguity of the defined terms.
---------------------------------------------------------------------------
\81\ The FERC-725S collection includes the EOP family of
Reliability Standards: EOP-004-4, EOP 005-3, EOP-006-3, EOP-008-2,
EOP-010-1, EOP-011-4, and EOP-012-3.
---------------------------------------------------------------------------
41. The number of respondents below are based on an estimate of the
NERC compliance registry for generator owners and generator operators.
Proposed Reliability Standard EOP-012-3 applies to generator owners and
generator operators. The Commission based its paperwork burden
estimates on the NERC compliance registry as of July 11, 2025.
According to the registry for U.S. unique entities, there are 1,314
generator owners. The revisions to proposed Reliability Standard EOP-
012-3 should not present any additional burden to the generator
operators compared to the previously approved EOP-012-2 but will
present additional burden to generator owners. Thus, the estimates in
the tables below are based on the change in generator owner burden
borne from the Reliability Standard approved in this order.\82\ The
Commission based the burden estimates in the tables below on staff
experience, knowledge, and expertise.
---------------------------------------------------------------------------
\82\ The overall burden associated with Reliability Standard
EOP-012 will be the sum of the burden (responses) from Reliability
Standard EOP-012-1 (under Docket No. RD23-1-000), Reliability
Standard EOP-012-2 (under Docket No. RD24-5-000), and proposed
Reliability Standard EOP-012-3 (under Docket No. RD25-7-000).
---------------------------------------------------------------------------
Public Reporting Burden: The estimated costs and burden for the
revisions in Docket No. RD25-7-000 are shown in the table below.
Table 1--Proposed Changes Due to Final Rule in Docket No. RD25-7-000 for EOP-012-3
----------------------------------------------------------------------------------------------------------------
Number of Average number
Reliability standard & Type and number of annual Total number of burden Total burden
requirement entity responses of responses hours per hours
per entity response \83\
(1)............... (2) (1) * (2) = (4)............ (3) * (4) = (5)
(3)
----------------------------------------------------------------------------------------------------------------
FERC-725S
----------------------------------------------------------------------------------------------------------------
Annual Collection EOP-012-3
----------------------------------------------------------------------------------------------------------------
EOP-012-3.................... 1,314(GO)......... 1 1,314 4 hrs., $63.52/ 5,256 hrs.,
hr. $333,861.12.
-------------------------------------------------
Total for EOP-012-3...... .................. ........... 1,314 4 hrs., $63.52/ 5,256 hrs.,
hr. $333,861.12.
----------------------------------------------------------------------------------------------------------------
Changes to FERC 725S by RD25-7-000
----------------------------------------------------------------------------------------------------------------
FERC-725S modification Current........... Current Total change due to RD25-7-000
inventory......... inventory
(hours)........... (responses)
----------------------------------------------------------------------------------------------------------------
Addition of EOP-012-3........ .................. ........... +5,256 hrs., +1,314 responses.
----------------------------------------------------------------------------------------------------------------
Titles: FERC-725S, Mandatory Reliability Standards for the Bulk-
Power System; EOP Reliability Standards.
---------------------------------------------------------------------------
\83\ The estimated hourly cost (salary plus benefits) is a
combination of the following categories from the Bureau of Labor
Statistics (BLS) website, <a href="http://www.bls.gov/oes/current/naics2_22.htm:">http://www.bls.gov/oes/current/naics2_22.htm:</a> 75% of the average of an Electrical Engineer (17-
2071) $71.19/hr., x .75 = 53.3925 ($53.39-rounded) ($53.39/hour);
and 25% of an Information and Record Clerk (43-4199) $40.51/hr.,
$40.51 x .25 = 10.1275 ($10.13 rounded) ($10.13/hour), for a total
($53.39 + $10.13 = $63.52/hour).
---------------------------------------------------------------------------
Action: Revisions to Existing Collections of Information in FERC-
725S.
OMB Control Nos: 1902-0270 (FERC-725S).
Respondents: Business or other for profit, and not for profit
institutions.
Frequency of Responses: Annually.
Necessity of the Information: Reliability Standard EOP-012-3
(Extreme Cold Weather Preparedness and Operations) is part of the
implementation of the Congressional
[[Page 45768]]
mandate of the Energy Policy Act of 2005 to develop mandatory and
enforceable Reliability Standards to better ensure the reliability of
the nation's Bulk-Power System. Specifically, the revised Reliability
Standard ensures that generating resources are prepared for local cold
weather events and that entities will effectively communicate the
information needed for operating the Bulk-Power System.
Internal Review: The Commission has reviewed the revised
Reliability Standard and made a determination that its action is
necessary to implement section 215 of the FPA. The Commission has
assured itself, by means of its internal review, that there is
specific, objective support for the burden estimates associated with
the information requirements.
Description of the Revision to FERC-725S: The FERC-725S (OMB
Control No. 1902-0270) is an existing information collection that
contains the requirements for the EOP-012-2 Reliability Standard. As
described in Docket No. RD25-7-000 above, the Reliability Standard
(EOP-012-2) is proposed to be retired and replaced by EOP-012-3.
42. Interested persons may obtain information on the reporting
requirements by contacting the Federal Energy Regulatory Commission,
Office of the Executive Director, 888 First Street NE, Washington, DC
20426 [Attention: Kayla Williams, email: <a href="/cdn-cgi/l/email-protection#a3e7c2d7c2e0cfc6c2d1c2cdc0c6e3c5c6d1c08dc4ccd5"><span class="__cf_email__" data-cfemail="4703263326042b22263526292422072122352469202831">[email protected]</span></a>, phone:
(202) 502-6468].
43. Comments concerning the information collections and
requirements approved for retirement in this order and the associated
burden estimates, should be sent to the Commission (identified by
Docket No. RD25-7-000), using the following methods. Electronic filing
through <a href="https://www.ferc.gov">https://www.ferc.gov</a> is preferred. Electronic Filing should 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 U.S. Postal Service mail or by hand (including
courier) delivery: Mail via U.S. Postal Service Only: Addressed to:
Federal Energy Regulatory Commission, Secretary of the Commission, 888
First Street NE, Washington, DC 20426. Hand (including courier)
delivery: Deliver to: Federal Energy Regulatory Commission, 12225
Wilkins Avenue, Rockville, MD 20852.
V. Document Availability
44. 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>).
45. 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.
46. 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#6e080b1c0d01000207000b1d1b1e1e011c1a2e080b1c0d40090118"><span class="__cf_email__" data-cfemail="51373423323e3f3d383f34222421213e232511373423327f363e27">[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#b3c3c6d1dfdad09dc1d6d5d6c1d6ddd0d6c1dcdcdef3d5d6c1d09dd4dcc5"><span class="__cf_email__" data-cfemail="6c1c190e00050f421e090a091e09020f091e0303012c0a091e0f420b031a">[email protected]</span></a>.
The Commission orders:
(A) Proposed Reliability Standard EOP-012-3, its associated
violation risk factors and violation severity levels, the revised
defined term Generator Cold Weather Constraint declaration, and the
proposed retirement of Reliability Standard EOP-012-2 immediately prior
to the effective date of proposed Reliability Standard EOP-012-3 are
hereby approved, as discussed in the body of this order.
(B) Reliability Standard EOP-012-3 shall be effective on October 1,
2025.
(C) NERC is hereby directed to submit comprehensive biennial
informational filings and assess data submittals to address matters
associated with Reliability Standard EOP-012-3, as discussed in the
body of this order.
By the Commission.
Issued: September 18, 2025.
Carlos D. Clay,
Deputy Secretary.
[FR Doc. 2025-18393 Filed 9-22-25; 8:45 am]
BILLING CODE 6717-01-P
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