[Federal Register Volume 74, Number 27 (Wednesday, February 11, 2009)]
[Notices]
[Pages 6861-6863]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-2868]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[IC09-725-000]


Commission Information Collection Activities (FERC-725); Proposed 
Collection; Comment Request; Extension

February 4, 2009.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice.

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SUMMARY: In compliance with the requirements of section 3507 of the 
Paperwork Reduction Act of 1995, 44 U.S.C. 3507, the Federal Energy 
Regulatory Commission (Commission) is

[[Page 6862]]

soliciting public comment on the specific aspects of the information 
collection described below.

DATES: Comments on the information collection are due by April 14, 
2009.

ADDRESSES: An example of this collection of information may be obtained 
from the Commission's Web site (at http://www.ferc.gov/docs-filing/elibrary.asp). Comments may be filed either electronically or in paper 
format, and should refer to Docket No. IC09-725-000. Documents must be 
prepared in an acceptable filing format and in compliance with the 
Federal Energy Regulatory Commission submission guidelines at http://www.ferc.gov/help/submission-guide.asp.
    Comments may be filed electronically via the eFiling link on the 
Commission's Web site at http://www.ferc.gov. First time users will 
have to establish a user name and password (http://www.ferc.gov/docs-filing/eregistration.asp) before eFiling. The Commission will send an 
automatic acknowledgement to the sender's e-mail address upon receipt 
of comments through eFiling.
    Commenters filing electronically should not make a paper filing. 
Commenters that are not able to file electronically must send an 
original and 14 copies of their comments to: Federal Energy Regulatory 
Commission, Secretary of the Commission, 888 First Street, NE., 
Washington, DC 20426.
    Users interested in receiving automatic notification of activity in 
this docket may do so through eSubscription (at http://www.ferc.gov/docs-filing/esubscription.asp). In addition, all comments and FERC 
issuances may be viewed, printed, or downloaded remotely through FERC's 
Web site using the ``eLibrary'' link and searching on Docket Number 
IC09-725. For user assistance, contact FERC Online Support (e-mail at 
[email protected], or call toll-free at (866) 208-3676, or for 
TTY, contact (202) 502-8659).

FOR FURTHER INFORMATION CONTACT: Michael Miller, Federal Energy 
Regulatory Commission, 888 First St., NE., Washington, DC 20426. He may 
be reached by telephone at (202) 502-8415, by fax at (202) 273-0873, 
and by e-mail at [email protected].

SUPPLEMENTARY INFORMATION: The information collected under the 
requirements of FERC-725 (``Certification of Electric Reliability 
Organization; Procedures for Electric Reliability Standards'' (OMB 
Control No. 1902-0225)) is used by the Commission to implement the 
statutory provisions of Title XII, subtitle A of the Energy Policy Act 
of 2005 (EPAct 2005).\1\
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    \1\ Energy Policy Act of 2005, Pub. L. No. 109-58, 119 Stat. 594 
(2005) (codified at 42 U.S.C. 16451, et seq.)
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    The Electricity Modernization Act of 2005 was enacted into law as 
part of the Energy Policy Act of 2005 on August 8, 2005. Subtitle A of 
the Electricity Modernization Act amended the Federal Power Act (FPA) 
by adding a new section 215, titled ``Electric Reliability.'' Section 
215 of the FPA buttresses the Commission's efforts to strengthen the 
reliability of the interstate grid through the granting of new 
authority to provide for a system of mandatory Reliability Standards 
developed by the Electric Reliability Organization (ERO) \2\ and 
reviewed and approved by FERC.
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    \2\ ``Electric Reliability Organization'' or ``ERO'' means the 
organization certified by the Commission the purpose of which is to 
establish and enforce Reliability Standards for the Bulk-Power 
System, subject to Commission review.
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    On February 3, 2006, the Commission issued Order No.672 \3\ 
certifying a single Electric Reliability Organization, the ERO, to 
oversee the reliability of the United States' portion of the 
interconnected North American Bulk-Power System, subject to Commission 
oversight. The ERO is responsible for developing and enforcing the 
mandatory Reliability Standards. The Reliability Standards apply to all 
users, owners and operators of the Bulk-Power System. The Commission 
has the authority to approve all ERO actions, to order the ERO to carry 
out its responsibilities under these statutory provisions, and to also 
as appropriate independently enforce Reliability Standards.
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    \3\ Rules Concerning Certification of the Electric Reliability 
Organization; and Procedures for the Establishment, Approval, and 
Enforcement of Electric Reliability Standards ] 31,204 71 FR 8662 
(2006) Order on reh'g, 71 FR 19,814 (2006), FERC Statutes and 
Regulations ] 31,212 (2006).
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    Once certified, the ERO must submit each proposed Reliability 
Standard to the Commission for approval. Only a Reliability Standard 
approved by the Commission is enforceable under section 215 of the FPA.
    The ERO may delegate its enforcement responsibilities to a Regional 
Entity. Delegation is effective only after the Commission approves the 
delegation agreement. A Regional Entity may also propose a Reliability 
Standard to the ERO for submission to the Commission for approval. This 
Reliability Standard may be either for application to the entire 
interconnected Bulk-Power System or for application only within its own 
region.
    The ERO or a Regional Entity must monitor compliance with the 
Reliability Standards. It will direct a user, owner or operator of the 
Bulk-Power System that violates a Reliability Standard to comply with 
the Reliability Standard. The ERO or Regional Entity may impose a 
penalty on a user, owner or operator for violating a Reliability 
Standard, subject to review by, and appeal to, the Commission.
    Subtitle A of the Electricity Modernization Act of 2005 also 
includes two reliability-related provisions that are not part of the 
section 215 of the FPA. First section 1211(b) of the Act provides that 
the ERO certified by the Commission as well as Regional Entities are 
not departments, agencies or instrumentalities of the United States 
Government. Section 1211 (c) provides that federal agencies responsible 
for approving access to electric transmission or distribution 
facilities located on lands within the United States will, in 
accordance with applicable law, expedite any federal agency approvals 
that are necessary to allow the owners or operators of these facilities 
to comply with a FERC-approved Reliability Standard that pertains to 
vegetation management, electric service restoration, or resolution of 
situations that imminently endanger the reliability or safety of the 
facilities.
    Order No. 672 set forth the criteria that an ERO applicant must 
satisfy to qualify as the ERO, including the ability to develop and 
enforce Reliability Standards.\4\ The ERO submission must include an 
evaluation of the effectiveness of each Regional Entity. The Commission 
will, as part of its assessment of the ERO's performance, assess the 
performance of each Regional Entity and issue an order addressing 
Regional Entity compliance. If a Regional Entity fails to comply 
adequately with the Commission order, the Commission may institute a 
proceeding to enforce its order, including, if necessary and 
appropriate, a proceeding to consider rescission of the Commission's 
approval of the Regional Entity's delegation agreement.
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    \4\ The criteria stated in the Final Rule track the statutory 
criteria for ERO certification provided in section 215(c) of the 
FPA.
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    The Electricity Modernization Act of 2005 buttresses the 
Commission's efforts to strengthen the interstate transmission grid 
through the granting of authority pursuant to section 215 of the FPA 
which provides for a system of mandatory reliability rules developed by 
the ERO, established by the Commission, and enforced by the Commission, 
subject to Commission review.
    A submission of the information is necessary for the Commission to 
carry

[[Page 6863]]

out its responsibilities under EPAct 2005.\5\ The Commission implements 
its responsibilities through the Code of Federal Regulations, 18 CFR 
Part 39. These filing requirements are mandatory.
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    \5\ 42 U.S.C. 16451 et seq.
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    Action: The Commission is requesting a three-year extension of the 
current expiration date without any changes to the reporting 
requirements.
    Burden Statement: The annual public reporting burden and cost for 
this collection are estimated as follows:
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    \6\ The burden and cost estimates do not include the cost of 
applying to become the ERO because that application process and the 
resulting FERC selection have been completed.
    \7\ Per Order 672, the ERO will undergo a performance assessment 
three years after certification (July 2009) and every five years 
thereafter. Therefore, the total figures for FTE (10), burden hrs. 
(9,800), and cost ($1,050,000) associated with doing the self-
assessment have been divided by 3 to provide average annual figures 
for this notice.
    The methodology for estimating the totals for the 3-year self 
assessment follows. Staff estimates that the self assessment will 
take 6 months to complete. In order for NERC to complete the work in 
half the time, we assume that NERC must hire double the workforce, 
so 10 contractors are used in the present calculation. The 
$1,050,000 was taken directly from NERC's 2009 Business Plan and 
Budget.
    \8\ NERC Employee Cost Estimate: NERC Employee Compensation 
Average is $140,442 (from 2009 Budget salary average). For 1.5 
Employees, the Annualized Salary Expense is $210,663.
    \9\ Regional Entity (RE) Employee Cost Estimate: RE Employee 
Compensation Average of $115,520 (from 2009 Budget salary average). 
For 4.5 Employees, the Annualized Salary Expense is $519,840.

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                                                                                        Est. annual
          FERC-725 \6\                                                         FTE         burden    Est. annual
                                                                                           (hrs.)      cost ($)
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Annual NERC Costs...............  3 Year Self          Contractor........     3.33 \7\     3,266.67  350,000 \7\
                                   Assessment (Due 7/                                           \7\
                                   09) \7\.
                                  Reliability          Internal..........          1.5        2,940      210,663
                                   Reporting Estimate
                                   \8\.
                                  Estimate...........  Software..........            0            0       75,000
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    Total Annual NERC Costs..............................................         4.83     6,206.67      635,663
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Annual RE Costs \9\.............  Reliability          Internal..........          4.5        8,820      519,840
                                   Reporting Estimate.
                                  Estimate...........  Software..........            0            0      225,000
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    Total Annual RE Costs................................................          4.5        8,820      744,840
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    Total Annual Burden & Cost Estimate..................................         9.33    15,026.67   $1,380,503
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    The estimated annual total cost to respondents is $1,380,503 
\7,8,9\ (including direct labor, overhead costs to prepare the 
application, and consultation to obtain specialized advice in 
responding to and implementing the certification application).
    The reporting burden includes the total time, effort, or financial 
resources expended to generate, maintain, retain, disclose, or provide 
the information including: (1) Reviewing instructions; (2) developing, 
acquiring, installing, and utilizing technology and systems for the 
purposes of collecting, validating, verifying, processing, maintaining, 
disclosing and providing information; (3) training personnel to respond 
to an information collection; (4) searching data sources; (5) preparing 
and reviewing the information collection; and (6) transmitting or 
otherwise disclosing the information.
    The estimate of cost for respondents is based upon salaries for 
professional and clerical support, as well as direct and indirect or 
overhead costs. Direct costs include all costs directly attributable to 
providing this information, such as administrative costs and the cost 
for information technology. Indirect or overhead costs are costs 
incurred by an organization in support of its mission. These costs 
apply to activities which benefit the whole organization rather than 
any one particular function or activity.
    Comments are invited on: (1) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the Commission, including whether the information will have practical 
utility; (2) the accuracy of the agency's estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions used; (3) ways to enhance the quality, 
utility and clarity of the information to be collected; and (4) ways to 
minimize the burden of the collection of information on those who are 
to respond, including the use of appropriate automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology.

Kimberly D. Bose,
Secretary.
 [FR Doc. E9-2868 Filed 2-10-09; 8:45 am]
BILLING CODE 6717-01-P