[Federal Register Volume 78, Number 125 (Friday, June 28, 2013)]
[Proposed Rules]
[Pages 38851-38867]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-15433]



[[Page 38851]]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 40

[Docket No. RM13-8-000]


Electric Reliability Organization Proposal To Retire Requirements 
in Reliability Standards

AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Notice of proposed rulemaking.

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SUMMARY: Pursuant to section 215 of the Federal Power Act, the 
Commission proposes to approve the retirement of 34 requirements within 
19 Reliability Standards identified by the North American Electric 
Reliability Corporation (NERC), the Commission-certified Electric 
Reliability Organization. The requirements proposed for retirement 
either: Provide little protection for Bulk-Power System reliability or 
are redundant with other aspects of the Reliability Standards. In 
addition, the Commission proposes to withdraw 41 outstanding Commission 
directives that NERC develop modifications to Reliability Standards. 
The Commission believes that the identified outstanding directives have 
either been addressed in some other manner, are redundant with another 
directive or provide general guidance as opposed to a specific 
directive and, therefore, that withdrawal of these outstanding 
directives will have little impact the reliability of the Bulk-Power 
System. This proposal is part of the Commission's ongoing effort to 
review its requirements and reduce unnecessary burdens by eliminating 
requirements that are not necessary to the performance of the 
Commission's regulatory responsibilities.

DATES: Comments are due August 27, 2013.

ADDRESSES: Comments, identified by docket number, may be filed in the 
following ways:
     Electronic Filing through http://www.ferc.gov. Documents 
created electronically using word processing software should be filed 
in native applications or print-to-PDF format and not a scanned format.
     Mail/Hand Delivery: Those unable to file electronically 
may mail or hand-deliver comments to: Federal Energy Regulatory 
Commission, Secretary of the Commission, 888 First Street NE., 
Washington, DC 20426.
    Instructions: For detailed instructions on submitting comments and 
additional information on the rulemaking process, see the Comment 
Procedures Section of this document.

FOR FURTHER INFORMATION CONTACT: Kevin Ryan (Legal Information), Office 
of the General Counsel, Federal Energy Regulatory Commission, 888 First 
Street NE., Washington, DC 20426, Telephone: (202) 502-6840. Michael 
Gandolfo (Technical Information), Office of Electric Reliability, 
Division of Reliability Standards and Security, Federal Energy 
Regulatory Commission, 888 First Street NE., Washington, DC 20426, 
Telephone: (202) 502-6817.

SUPPLEMENTARY INFORMATION:

Notice of Proposed Rulemaking

(Issued June 20, 2013)

    1. Pursuant to section 215(d) of the Federal Power Act (FPA),\1\ 
the Commission proposes to approve the retirement of 34 requirements 
within 19 Reliability Standards identified by the North American 
Electric Reliability Corporation (NERC), the Commission-certified 
Electric Reliability Organization (ERO). The proposed retirements meet 
the benchmarks set forth in the Commission's March 15, 2012 order that 
requirements proposed for retirement either: (1) Provide little 
protection for Bulk-Power System reliability or (2) are redundant with 
other aspects of the Reliability Standards.\2\ Consistent with the 
Commission's proposal in the March 2012 Order, we believe that the 
requirements proposed for retirement can ``be removed from the 
Reliability Standards with little effect on reliability and an increase 
in efficiency of the ERO compliance program.'' \3\ We seek comment on 
our proposal to approve the retirement of the 34 requirements 
identified by NERC.
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    \1\ 16 U.S.C. 824o(d) (2006).
    \2\ See North American Electric Reliability Corp., 138 FERC ] 
61,193, at P 81 (March 2012 Order), order on reh'g and 
clarification, 139 FERC ] 61,168 (2012).
    \3\ Id. P 81.
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    2. In addition, we propose to withdraw 41 outstanding Commission 
directives that NERC develop modifications to Reliability Standards. In 
Order No. 693 and subsequent final rules, the Commission has identified 
various issues and directed NERC to develop modifications to the 
Reliability Standards or take other action to address those issues.\4\ 
While NERC has addressed many of these directives, over 150 directives 
remain outstanding. Some of the outstanding directives may no longer 
warrant action to assure reliability of the Bulk-Power System and 
should be withdrawn. We have identified 41 outstanding directives to 
withdraw based on the following three guidelines: (1) Whether the 
reliability concern underlying the outstanding directive has been 
addressed in some manner, rendering the directive stale; (2) whether 
the outstanding directive provides general guidance for standards 
development rather than a specific directive; and (3) whether the 
outstanding directive is redundant with another directive. The 41 
outstanding directives we propose to withdraw are listed in Attachment 
A to this Notice of Proposed Rulemaking (NOPR). The withdrawal of these 
directives will enhance the efficiency of the Reliability Standards 
development process, with little or no impact on Bulk-Power System 
reliability.
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    \4\ Mandatory Reliability Standards for the Bulk-Power System, 
Order No. 693, FERC Stats. & Regs. ] 31,242, order on reh'g, Order 
No. 693-A, 120 FERC ] 61,053 (2007). See also Mandatory Reliability 
Standards for the Calculation of Available Transfer Capability, 
Capacity Benefit Margins, Transmission Reliability Margins, Total 
Transfer Capability, and Existing Transmission Commitments and 
Mandatory Reliability Standards for the Bulk-Power System, Order No. 
729, 129 FERC ] 61,155 (2009), order on clarification, Order No. 
729-A, 131 FERC ] 61,109 (2010), order on reh'g and reconsideration, 
Order No. 729-B, 132 FERC ] 61,027 (2010).
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    3. Pursuant to Executive Order 13579, the Commission issued a plan 
to identify regulations that warrant repeal or modification, or 
strengthening, complementing, or modernizing where necessary or 
appropriate.\5\ In the Plan, the Commission also stated that it 
voluntarily and routinely, albeit informally, reviews its regulations 
to ensure that they achieve their intended purpose and do not impose 
undue burdens on regulated entities or unnecessary costs on those 
entities or their customers. The proposal in this NOPR is a part of the 
Commission's ongoing effort to review its requirements and reduce 
unnecessary burdens by eliminating requirements that are not necessary 
to the performance of the Commission's regulatory responsibilities.
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    \5\ Plan for Retrospective Analysis of Existing Rules, Docket 
No. AD12-6-000 (Nov. 8, 2011). Executive Order 13579 requests that 
independent agencies issue public plans for periodic retrospective 
analysis of their existing ``significant regulations.'' 
Retrospective analysis should identify ``significant regulations'' 
that may be outmoded, ineffective, insufficient, or excessively 
burdensome, and to modify, streamline, expand, or repeal them in 
order to achieve the agency's regulatory objective.
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I. Background

A. Section 215 of the FPA

    4. Section 215 of the FPA requires the Commission-certified ERO to 
develop mandatory and enforceable Reliability

[[Page 38852]]

Standards, subject to Commission review and approval. Once approved, 
the Reliability Standards may be enforced in the United States by the 
ERO subject to Commission oversight, or by the Commission 
independently.\6\ Pursuant to the requirements of FPA section 215, the 
Commission established a process to select and certify an ERO \7\ and, 
subsequently, certified NERC as the ERO.\8\
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    \6\ See 16 U.S.C. 824o(e)(3).
    \7\ Rules Concerning Certification of the Electric Reliability 
Organization; and Procedures for the Establishment, Approval, and 
Enforcement of Electric Reliability Standards, Order No. 672, FERC 
Stats. & Regs. ] 31,204, order on reh'g, Order No. 672-A, FERC 
Stats. & Regs. ] 31,212 (2006).
    \8\ North American Electric Reliability Corp., 116 FERC ] 
61,062, order on reh'g and 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. March 2012 Order

    5. In the March 2012 Order, the Commission accepted, with 
conditions, NERC's ``Find, Fix, Track and Report'' (FFT) initiative. 
The FFT process, inter alia, provides NERC and the Regional Entities 
the flexibility to address lower-risk possible violations through an 
FFT informational filing as opposed to issuing and filing a Notice of 
Penalty. In addition, the Commission raised the prospect of revising or 
removing requirements of Reliability Standards that ``provide little 
protection for Bulk-Power System reliability or may be redundant.'' \9\ 
Specifically, the Commission stated:
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    \9\ March 2012 Order, 138 FERC ] 61,193 at P 81.

The Commission notes that NERC's FFT initiative is predicated on the 
view that many violations of requirements currently included in 
Reliability Standards pose lesser risk to the Bulk-Power System. If 
so, some current requirements likely provide little protection for 
Bulk-Power System reliability or may be redundant. The Commission is 
interested in obtaining views on whether such requirements could be 
removed from the Reliability Standards with little effect on 
reliability and an increase in efficiency of the ERO compliance 
program. If NERC believes that specific Reliability Standards or 
specific requirements within certain Standards should be revised or 
removed, we invite NERC to make specific proposals to the Commission 
identifying the Standards or requirements and setting forth in 
detail the technical basis for its belief. In addition, or in the 
alternative, we invite NERC, the Regional Entities and other 
interested entities to propose appropriate mechanisms to identify 
and remove from the Commission-approved Reliability Standards 
unnecessary or redundant requirements. We will not impose a deadline 
on when these comments should be submitted, but ask that to the 
extent such comments are submitted NERC, the Regional Entities, and 
interested entities coordinate to submit their respective comments 
concurrently.\10\
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    \10\ Id.

In response, NERC initiated a review, referred to as the ``P 81 
project,'' to identify requirements that could be removed from 
Reliability Standards without impacting the reliability of the Bulk-
Power System.

II. NERC Petition

    6. In its February 28, 2013 petition, NERC seeks Commission 
approval of the retirement of 34 requirements within 19 Reliability 
Standards. NERC asserts that the 34 requirements proposed for 
retirement ``are redundant or otherwise unnecessary'' and that 
``violations of these requirements . . . pose a lesser risk to the 
reliability of the Bulk-Power System.'' \11\ In addition, NERC states 
that it is not proposing to retire any Reliability Standard in its 
entirety, and the remaining requirements of each affected Reliability 
Standard will remain in continuous effect. NERC maintains that the 
requirements proposed for retirement ``can be removed [from the 
Reliability Standards] with little to no effect on reliability.'' \12\ 
NERC also asserts that the proposed retirement of the 34 requirements 
``will allow industry stakeholders to focus their resources 
appropriately on reliability risks and will increase the efficiency of 
the ERO compliance program.'' \13\
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    \11\ Petition at 2.
    \12\ Id.
    \13\ Id.
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    7. In addition, in its petition, NERC provides a description of the 
collaborative process adopted by industry stakeholders to respond to 
the Commission's proposal in paragraph 81 of the March 2012 Order. NERC 
maintains that the ``scope of the P 81 project was limited solely to 
the removal of requirements in their entirety that would not otherwise 
compromise the integrity of the specific Reliability Standard or impact 
the reliability of the BES.'' \14\ Further, NERC states that the 
criteria adopted to identify potential requirements for retirement 
``were designed so that no rewriting or consolidation of requirements 
would be necessary.'' \15\
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    \14\ Id.
    \15\ Id.
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    8. NERC states that the ``P 81 Team'' developed three criteria for 
its review:

(1) Criterion A: An overarching criteria designed to determine that 
there is no reliability gap created by the proposed retirement; (2) 
Criterion B: consists of seven separate identifying criteria 
designed to recognize requirements appropriate for retirement 
(administrative; data collection/data retention; documentation; 
reporting; periodic updates; commercial or business practice; and 
redundant); and (3) Criterion C: consists of seven separate 
questions designed to assist the P 81 Team in making an informed 
decision regarding whether requirements are appropriate to propose 
for retirement.\16\
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    \16\ Id.

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    9. Specifically, the seven questions adopted for Criterion C are:

C1: Was the Reliability Standard requirement part of a FFT filing?
C2: Is the Reliability Standard requirement being reviewed in an on-
going Standards Development Project?
C3: What is the VRF of the Reliability Standard requirement?
C4: In which tier of the 2013 [Actively Monitored List] does the 
Reliability Standard requirement fall?
C5: Is there a possible negative impact on NERC's published and posted 
reliability principles?
C6: Is there any negative impact on the defense in depth protection of 
the Bulk Electric System?
C7: Does the retirement promote results or performance based 
Reliability Standards?

    10. NERC maintains that the project team focused on the 
identification of ``lower-level facilitating requirements that are 
either redundant with other requirements or where evidence retention is 
burdensome and the requirement is unnecessary'' because the reliability 
goal is achieved through other standards or mechanisms.\17\ NERC 
asserts that the proposed retirement of documentation requirements will 
not create a gap in reliability because ``NERC and the Regional 
Entities can enforce reporting obligations pursuant to section 400 of 
NERC's Rules of Procedure and Appendix 4C to ensure that necessary data 
continues to be submitted for compliance and enforcement purposes.'' 
\18\ NERC asserts that although the P 81 project proposes to retire 
requirements associated with data retention or documentation, ``the 
simple fact that a requirement includes a data retention or 
documentation element does not signify that it should be considered for 
retirement or is otherwise inappropriately designated as a 
requirement.'' \19\
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    \17\ Id. at 7.
    \18\ Id. at 8 (citing North American Electric Reliability Corp., 
141 FERC ] 61,241 at P 82 (2012) (approving proposed revisions to 
NERC's Rules of Procedure)).
    \19\ Id. at 9 (emphasis in original).
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    11. Based on this approach, NERC identified the following 34 
requirements

[[Page 38853]]

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within 19 Reliability Standards for potential retirement:

 BAL-005-0.2b, Requirement R2--Automatic Generation Control
 CIP-003-3, -4, Requirement R1.2--Cyber Security--Security 
Management Controls \20\
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    \20\ NERC explains that although only eight requirements in the 
Critical Infrastructure Protection (CIP) body of Reliability 
Standards are proposed for retirement, NERC proposes the retirement 
of those eight requirements in both CIP versions 3 and 4. Therefore, 
the total number of CIP requirements proposed for retirement is 
sixteen.
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 CIP-003-3, -4, Requirements R3, R3.1, R3.2, and R3.3--Cyber 
Security--Security Management Controls
 CIP-003-3, -4, Requirement R4.2--Cyber Security--Security 
Management Controls
 CIP-005-3a, -4a, Requirement R2.6--Cyber Security--Electronic 
Security Perimeter(s)
 CIP-007-3, -4, Requirement R7.3--Cyber Security--Systems 
Security Management
 EOP-005-2, Requirement R3.1--System Restoration from 
Blackstart Services
 FAC-002-1, Requirement R2--Coordination of Plans for New 
Facilities
 FAC-008-3, Requirements R4 and R5--Facility Ratings
 FAC-010-2.1, Requirement R5--System Operating Limits 
Methodology for the Planning Horizon
 FAC-011-2.1, Requirement R5--System Operating Limits 
Methodology for the Operations Horizon
 FAC-013-2, Requirement R3--Assessment of Transfer Capability 
for the Near-term Transmission Planning Horizon
 INT-007-1, Requirement R1.2--Interchange Confirmation
 IRO-016-1, Requirement R2--Coordination of Real-Time 
Activities between Reliability Coordinators
 NUC-001-2, Requirements R9.1, R9.1.1, R9.1.2, R9.1.3, and 
R1.9.4--Nuclear Plant Interface Coordination
 PRC-010-0, Requirement R2--Assessment of the Design and 
Effectiveness of UVLS Programs
 PRC-022-1, Requirement R2--Under-Voltage Load Shedding Program 
Performance
 VAR-001-2, Requirement R5--Voltage and Reactive Control

    12. NERC also requests that the Commission approve the 
implementation plan, provided as Exhibit C to NERC's petition, which 
provides that the identified requirements will be retired immediately 
upon Commission approval.

    13. NERC states that it will apply the ``concepts'' from the P 81 
project to improve the drafting of Reliability Standards going forward. 
Specifically, NERC explains that Reliability Standards development 
projects ``will involve stronger examination for duplication of 
requirements across the NERC body of Reliability Standards and the 
technical basis and necessity for each and every requirement will 
continue to be evaluated.'' \21\ According to NERC, requirements that 
were proposed and ultimately not included in the immediate filing will 
be mapped for consideration as part of addressing existing standards 
projects and five-year reviews of standards that have not been recently 
revised.
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    \21\ Petition at 9.
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III. Discussion

A. Proposed Retirement of Requirements

    14. Pursuant to section 215 of the FPA, we propose to approve the 
retirement of the 34 requirements within 19 Reliability Standards 
identified by NERC as just, reasonable, not unduly discriminatory or 
preferential, and in the public interest. In the March 2012 Order, the 
Commission explained that ``some current requirements likely provide 
little protection for Bulk-Power System reliability or may be 
redundant. The Commission is interested in obtaining views on whether 
such requirements could be removed from the Reliability Standards with 
little effect on reliability and an increase in efficiency of the ERO 
compliance program.'' \22\ In general, the proposed retirements satisfy 
the expectations set forth in the March 2012 Order; namely, the 
requirements proposed for retirement either: (1) Provide little 
protection for Bulk-Power System reliability or (2) are redundant with 
other aspects of the Reliability Standards.
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    \22\ March 2012 Order, 138 FERC ] 61,193 at P 81.
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    15. We agree with NERC that the elimination of certain requirements 
that pertain to the information collection or documentation will not 
result in a reliability gap. Section 400 and Appendix 4C (Uniform 
Compliance Monitoring and Enforcement Program) of the NERC Rules of 
Procedure provide NERC and the Regional entities the authority to 
enforce reporting obligations necessary to support reliability.\23\ 
This authority, used in the appropriate manner, justifies retiring 
certain documentation-related requirements that provide limited, if 
any, support for reliability. We anticipate that the retirement of such 
requirements will enhance the efficiency of the ERO compliance program, 
as well as the efficiency of individual registered entity compliance 
programs.
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    \23\ See North American Electric Reliability Corp., 141 FERC ] 
61,241 at P 82.
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    16. The specific requirements, NERC's rationale supporting 
retirement, and the Commission's proposed approval of the retirements 
are outlined below.
Resource and Demand Balancing Reliability Standards
    17. BAL-005-0.2b, Requirement R2--Automatic Generation Control:

R2. Each Balancing Authority shall maintain Regulating Reserve that 
can be controlled by AGC to meet the Control Performance Standard.

    18. NERC states that the reliability purpose of BAL-005-0.2b is 
``to establish requirements for Balancing Authority Automatic 
Generation Control (``AGC'') necessary to calculate Area Control Error 
(``ACE'') and to routinely deploy the Regulating Reserve.'' \24\ NERC 
asserts that the reliability purpose and objectives of BAL-005-0.2b 
will not be affected by the retirement of Requirement R2.\25\ 
Specifically, NERC states that BAL-005 is related to BAL-001--Real 
Power Balancing Control Performance, and a ``Balancing Authority must 
use AGC to control its Regulating Reserves to meet the Control 
Performance Standards (``CPS'') as set forth in BAL-001-0.1a 
Requirements R1 and R2.'' \26\ According to NERC, the ``primary purpose 
of Requirement R2 is to specify how a Balancing Authority must meet 
[the Control Performance Standards], i.e., through the use of 
[Automatic Generation Control].'' \27\
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    \24\ Petition at 12-13.
    \25\ Id. at 13.
    \26\ Id.
    \27\ Id.
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    19. NERC states that, although the Commission has previously 
rejected an argument regarding the potential redundancy of Requirement 
R2, ``this Requirement is redundant in an operational sense.'' \28\ 
NERC asserts that, while a balancing authority may be able to meet its 
Control Performance Standard without automatic generation control, ``it 
cannot do so for any extended period of time, and, therefore, Balancing 
Authorities must use [Automatic Generation Control] to control 
Regulating Reserves to satisfy obligations under BAL-001-0.1a

[[Page 38854]]

Requirements R1 and R2.'' \29\ NERC concludes that ``Balancing 
Authorities must still have Regulating Reserves that can be controlled 
by [Automatic Generation Control] to satisfy the [Control Performance 
Standards] in BAL-001-0.1a Requirements R1 and R2'' if BAL-005-0.2b, 
Requirement R2 is retired.\30\
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    \28\ Id. at 14.
    \29\ Id.
    \30\ Id.
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    20. We propose to approve the retirement of BAL-005-0.2b, 
Requirement R2 based on NERC's assertion that the requirement is 
redundant with BAL-001-0.1a, Requirements R1 and R2. Specifically, we 
propose to accept NERC's explanation that the obligation to maintain 
regulating reserves controlled by automatic generation control under 
BAL-005-0.2b, Requirement R2 is redundant from an operational 
perspective with the obligation to meet the Control Performance 
Standards in BAL-001-0.1a, Requirements R1 and R2. As NERC notes, 
although a balancing authority can meet the Control Performance 
Standards without automatic generation control, it is reasonable to 
assume that it cannot operate in that manner for an extended period of 
time and that a balancing authority must ultimately rely on regulating 
reserves controlled by automatic generation control.
Critical Infrastructure Protection Reliability Standards
    21. CIP-003-3, -4, Requirement R1.2--Cyber Security--Security 
Management Controls:

R1.2. The cyber security policy is readily available to all 
personnel who have access to, or are responsible for, Critical Cyber 
Assets.

    22. NERC states that CIP-003 requires responsible entities to have 
minimum security management controls in place to protect critical cyber 
assets. According to NERC, the ``reliability purpose and objectives of 
CIP-003 are unaffected by the proposed retirement of Requirement 
R1.2.'' \31\ NERC states that ``CIP-003 Requirement R1.2 is an 
administrative task that requires Responsible Entities to ensure that 
their cyber security policy is readily available to personnel'' and 
that retirement of Requirement R1.2 will not create a gap in 
reliability.\32\
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    \31\ Petition at 15.
    \32\ Id.
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    23. We propose to approve the retirement of CIP-003-3, -4, 
Requirement R1.2 based on NERC's explanation that it is an 
administrative provision that provides little protection for Bulk-Power 
System reliability. As NERC explains, the training, procedures, and 
process related requirements of the CIP standards render having the 
cyber security policy readily available an unnecessary requirement.\33\ 
Thus, we agree that CIP-003-3, -4, Requirement R1.2 may be viewed as 
redundant with the training obligations imposed under CIP-004-3a that 
require specific training for all employees, including contractors and 
service vendors, who have access to critical cyber assets. We also 
agree with NERC that CIP-003-3, -4, Requirement R1.2 creates a 
compliance burden that outweighs the reliability benefit of requiring a 
responsible entity to ensure that its general cyber security policy is 
readily available.
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    \33\ Id., NERC Petition, Exhibit E (Paragraph 81 Technical 
Whitepaper) at 17.
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    24. CIP-003-3, -4, Requirements R3, R3.1, R3.2, and R3.3--Cyber 
Security--Security Management Controls:

R3. Exceptions--Instances where the Responsible Entity cannot 
conform to its cyber security policy must be documented as 
exceptions and authorized by the senior manager or delegate(s).
R3.1. Exceptions to the Responsible Entity's cyber security policy 
must be documented within thirty days of being approved by the 
senior manager or delegate(s).
R3.2. Documented exceptions to the cyber security policy must 
include an explanation as to why the exception is necessary and any 
compensating measures.
R3.3. Authorized exceptions to the cyber security policy must be 
reviewed and approved annually by the senior manager or delegate(s) 
to ensure the exceptions are still required and valid. Such review 
and approval shall be documented.

    25. NERC states that CIP-003 requires Responsible Entities to have 
minimum security management controls in place to protect critical cyber 
assets. NERC asserts that the ``reliability purpose and objectives of 
CIP-003 are unaffected by the proposed retirement of Requirements R3, 
and R3.1 through R3.3.'' \34\ NERC characterizes CIP-003-3, -4, 
Requirements R3, R3.1, R3.2, and R3.3 as administrative tasks and 
indicates that the proposed retirement of these requirements presents 
no reliability gap. NERC explains that the requirements at issue ``only 
apply to exceptions to internal corporate policy, and only in cases 
where the policy exceeds a Reliability Standards requirement or 
addressees an issue that is not covered in a Reliability Standard.'' 
\35\ NERC maintains that the retirement of Requirements R3, R3.1, R3.2, 
and R3.3 ``would not impact an entity's ability to maintain such an 
exception process within its corporate policy governance procedures, if 
it is so desired.'' \36\
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    \34\ Petition at 17.
    \35\ Id.
    \36\ Id.
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    26. NERC explains that CIP-003-3, -4, Requirement R3, R3.1, R3.2, 
and R3.3 ``have proven not to be useful and have been subject to 
misinterpretation.'' \37\ Specifically, NERC states that entities may 
be interpreting CIP-003-3, -5, Requirement R3 and its sub-requirements 
as allowing for an exemption from compliance with one or more 
requirements of a Reliability Standard. NERC explains that this 
misinterpretation has created an unnecessary burden because entities 
have ``allocate[d] time and resources to tasks that are misaligned with 
the [CIP] requirements themselves.'' \38\ In addition, NERC notes that 
the misunderstanding of the requirements has affected the efficiency of 
the ERO compliance program due to ``the amount of time and resources 
needed to clear up the misunderstanding and coach entities on the 
meaning of the CIP exception requirements.'' \39\
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    \37\ Id., Exhibit E at 21.
    \38\ Id.
    \39\ Id.
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    27. We propose to approve the retirement of CIP-003-3, -4, 
Requirements R3, R3.1, R3.2, and R3.3 based on NERC's explanation that 
Requirements R3, R3.1, R3.2, and R3.3 impose administrative tasks that 
provide little protection for Bulk-Power System reliability. As NERC 
notes, the exception process outlined under CIP-003-3, -4, Requirements 
R3, R3.1, R3.2, and R3.3 only applies to a responsible entity's 
internal corporate policy, and only in situations where a responsible 
entity's internal corporate policy exceeds a CIP Reliability Standard 
requirement. The retirement of CIP-003-3, -4, Requirements R3, R3.1, 
R3.2, and R3.3 will not affect a responsible entity's compliance with 
the body of the CIP Reliability Standards.
    28. CIP-003-3, -4, Requirement R4.2--Cyber Security--Security 
Management Controls:

R4.2. The Responsible Entity shall classify information to be 
protected under this program based on the sensitivity of the 
Critical Cyber Asset information.

    29. NERC states that CIP-003, Requirement R4.2 requires responsible 
entities to classify information based on its ``sensitivity.'' NERC 
characterizes

[[Page 38855]]

this task as an ``administrative task'' that is redundant with CIP-003-
3, -4, Requirement R4. According to NERC, Requirement R4 already 
requires a Responsible Entity to classify critical cyber information 
and the ``only difference between Requirements R4 and R4.2 is that the 
subjective term `based on sensitivity' has been added [to Requirement 
R4.2], thus, making it essentially redundant.'' \40\ NERC maintains 
that the retirement of R4.2 presents no reliability gap.
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    \40\ Petition at 19.
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    30. We propose to approve the retirement of CIP-003-3, -4, 
Requirement R4.2 based on NERC's explanation that Requirement R4.2 is 
redundant with CIP-003-3, -4, Requirement R4. Specifically, the only 
distinction between CIP-003-3, -4, Requirement R4.2 and Requirement R4 
is the subjective term ``based on the sensitivity.'' The obligation in 
Requirement R4 that a responsible entity must identify, classify, and 
protect Critical Cyber Asset information remains even with the 
retirement of Requirement R4.2.
    31. CIP-005-3a, -4a, Requirement R2.6--Cyber Security--Electronic 
Security Perimeter(s):

R2.6. Appropriate Use Banner--Where technically feasible, electronic 
access control devices shall display an appropriate use banner on 
the user screen upon all interactive access attempts. The 
Responsible Entity shall maintain a document identifying the content 
of the banner.

    32. NERC states that the general purpose of CIP-005-3a, -4a is to 
ensure a proper or secure access point configuration. NERC asserts that 
the ``implementation of an appropriate use banner . . . on a user's 
screen for all interactive access attempts into the Electronic Security 
Perimeter . . . is an activity or task that is administrative.'' \41\ 
NERC states that the implementation of an appropriate use banner does 
not support the general purpose of CIP-005-3a, -4a and, thus, 
retirement of the provision presents no reliability gap.\42\
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    \41\ Id. at 20.
    \42\ An ``appropriate use banner'' is a notification presented 
to the user when accessing a system through an electronic access 
control device that is intended to emphasize the corporate policy on 
the appropriate use of the system.
---------------------------------------------------------------------------

    33. NERC explains that Requirement R2.6 has also been the subject 
of numerous technical feasibility exceptions for devices that cannot 
support such a banner and, thus, has diverted resources from more 
productive efforts. NERC avers that ``the ERO's compliance program 
would become more efficient if CIP-005-3a, -4a [Requirement] R2.6 was 
retired, because ERO time and resources could be reallocated to monitor 
compliance with the remainder of CIP-005-3a, -4a, which provides for 
more effective controls of electronic access at all electronic access 
points into the ESP.'' \43\
---------------------------------------------------------------------------

    \43\ Id. at 21.
---------------------------------------------------------------------------

    34. We propose to approve the retirement of CIP-005-3a, -4a, 
Requirement R2.6 based on NERC's explanation that Requirement R2.6 
represents an administrative task that provides little protection for 
Bulk-Power System reliability. As NERC notes, the implementation of an 
appropriate use banner as required under CIP-005-3a, -4a, Requirement 
R2.6 does not further the general goal of controlling electronic access 
at all electronic access points to the Electronic Security 
Perimeter(s). In addition, Requirement R2.6 has been the subject of 
numerous technical feasibility exceptions due to the fact that not all 
devices can support an appropriate use banner.
    35. CIP-007-3, -4, Requirement R7.3--Cyber Security--Systems 
Security Management:

R7.3. The Responsible Entity shall maintain records that such assets 
were disposed of or redeployed in accordance with documented 
policies.

    36. NERC states that Requirement R7.3 requires the maintaining of 
records for the purpose of demonstrating compliance with disposing of 
or redeploying Cyber Assets in accordance with documented procedures. 
NERC asserts, however, that it and the Regional Entities can require 
the production of records to demonstrate compliance under section 400 
of the NERC Rules of Procedure. Therefore, NERC maintains that 
``Requirement R7.3 is redundant and unnecessary.'' \44\
---------------------------------------------------------------------------

    \44\ Id. at 22.
---------------------------------------------------------------------------

    We propose to approve the retirement of CIP-007-3, -4, Requirement 
R7.3. The retirement of Requirement R7.3 will not relieve a responsible 
entity of the obligation to dispose of or redeploy a Cyber Asset in the 
manner set forth in CIP-007-3, -4, Requirement R7. Should NERC or the 
Regional Entities seek to confirm that a responsible entity is 
complying with the substantive obligations in CIP-007-3, -4, 
Requirement R7, they can invoke their authority under section 400 of 
the NERC Rules of Procedure.
Emergency Preparedness and Operations Reliability Standards
    37. EOP-005-2, Requirement R3.1--System Restoration from Blackstart 
Services:

R3.1. If there are no changes to the previously submitted 
restoration plan, the Transmission Operator shall confirm annually 
on a predetermined schedule to its Reliability Coordinator that it 
has reviewed its restoration plan and no changes were necessary.

    38. NERC states that the reliability purpose of EOP-005-2 is to 
ensure that plans, Facilities, and personnel are prepared to enable 
system restoration from blackstart resources to assure that reliability 
is maintained during restoration and priority is placed on restoring 
the Interconnection. According to NERC, the reliability purpose of EOP-
005 will be unaffected by the retirement of Requirement R3.1.
    39. NERC explains that ``EOP-005-2 Requirement R3 currently 
requires the Transmission Operator to submit its restoration plan to 
its Reliability Coordinator, whether or not the plan includes 
changes.'' \45\ NERC maintains that, since a transmission operator is 
already obligated to review and submit its restoration plan to its 
reliability coordinator annually whether or not there has been a 
change, ``EOP-005-2 Requirement R3.1 only adds a separate, duplicative 
administrative burden for the entity to also confirm that there were no 
changes[.]'' \46\
---------------------------------------------------------------------------

    \45\ Id. at 23.
    \46\ Id. at 24.
---------------------------------------------------------------------------

    40. We propose to approve the retirement of EOP-005-2, Requirement 
R3.1 based on NERC's explanation that Requirement R3.1 is redundant 
with EOP-005-2, Requirement R3. Specifically, Requirement R3 requires a 
responsible entity to review its restoration plan and submit the plan 
to its reliability coordinator annually. As NERC notes, Requirement 
R3.1 adds a separate, duplicative administrative burden requiring a 
transmission operator to confirm whether or not the restoration plan 
reflects any changes. The retirement of Requirement R3.1 will not 
remove the transmission operator's obligation to review and submit its 
restoration plan to its reliability coordinator on an annual basis.
Facilities Design, Connections, and Maintenance Reliability Standards
    41. FAC-002-1, Requirement R2--Coordination of Plans for New 
Facilities:

R2. The Planning Authority, Transmission Planner, Generator Owner, 
Transmission Owner, Load-Serving Entity, and Distribution Provider 
shall each retain its documentation (of its evaluation of the 
reliability impact of the new facilities and their connections to 
the interconnected transmission systems) for three years and shall 
provide the documentation to the Regional

[[Page 38856]]

Reliability Organization(s) and NERC on request (within 30 calendar 
days).

    42. NERC states that the reliability purpose of FAC-002 is to avoid 
adverse impacts on reliability by requiring generator owners and 
transmission owners and electricity end-users to meet facility 
connection and performance requirements. Specifically, NERC maintains 
that ``Responsible Entities have an existing obligation to produce the 
same information required by Requirement R2 to demonstrate compliance 
with Requirement R1 and its sub-requirements, thus making Requirement 
R2 redundant.'' \47\ NERC concludes that the retirement of Requirement 
R2 presents no reliability gap. NERC asserts that the reliability 
purpose of FAC-002 will be unaffected by the retirement of Requirement 
R2.
---------------------------------------------------------------------------

    \47\ Id. at 25.
---------------------------------------------------------------------------

    43. We propose to approve the retirement of FAC-002-1, Requirement 
R2 based on NERC's explanation that Requirement R2 is redundant with 
the compliance obligations imposed by FAC-002-1, Requirement R1 and its 
sub-requirements. While FAC-002-1, Requirement R2 requires a 
responsible entity to retain documentation of the evaluation of the 
reliability impact of new facilities and their connections to the 
interconnected transmission systems for three years, Requirement R1 and 
its sub-requirements require a responsible entity to have evidence and 
documentation of the evaluation in order to show that it is in 
compliance. We also note that Part D, Section 1.4 of FAC-002-1 
separately specifies a data retention period of three years for this 
evaluation. The retirement of Requirement R2 should not result in a 
reliability gap on account of the need to maintain evidence and 
documentation to show compliance with FAC-002-1, Requirement R1.
    44. FAC-008-3, Requirements R4 and R5--Facility Ratings:

R4. Each Transmission Owner shall make its Facility Ratings 
methodology and each Generator Owner shall each make its 
documentation for determining its Facility Ratings and its Facility 
Ratings methodology available for inspection and technical review by 
those Reliability Coordinators, Transmission Operators, Transmission 
Planners and Planning Coordinators that have responsibility for the 
area in which the associated Facilities are located, within 21 
calendar days of receipt of a request.
R5. If a Reliability Coordinator, Transmission Operator, 
Transmission Planner or Planning Coordinator provides documented 
comments on its technical review of a Transmission Owner's Facility 
Ratings methodology or Generator Owner's documentation for 
determining its Facility Ratings and its Facility Rating 
methodology, the Transmission Owner or Generator Owner shall provide 
a response to that commenting entity within 45 calendar days of 
receipt of those comments. The response shall indicate whether a 
change will be made to the Facility Ratings methodology and, if no 
change will be made to that Facility Ratings methodology, the reason 
why.

    45. NERC states that ``the reliability objective [of FAC-008 is] 
that facility ratings produced by the methodologies of the Transmission 
Owner or Generator Owner shall equal the most limiting applicable 
equipment rating, and consider, for example, emergency and normal 
conditions, historical performance, nameplate ratings, etc.'' \48\ NERC 
asserts that this reliability objective ``is not significantly or 
substantively advanced by FAC-008-3 R4 (available for inspection) and 
R5 (comment and responsive comments).'' \49\ NERC states that the 
retirement of FAC-008-03, Requirements R4 and R5 will not create a 
reliability gap ``because Transmission Owners and Generator Owners must 
comply with the substantive requirements of FAC-008-3 regarding their 
facility rating methodologies whether or not the exchange envisioned by 
FAC-008-3 R4 and R5 occurs.'' \50\
---------------------------------------------------------------------------

    \48\ Exhibit E at 40.
    \49\ Id.
    \50\ Id.
---------------------------------------------------------------------------

    46. NERC states further that ``neither FAC-008-3 R4 nor R5 require 
that the Transmission Owner and Generator Owner change its methodology, 
rather FAC-008-3 R4 and R5 are designed as an exchange of comments that 
may be an avenue to advance commercial interests.'' \51\ Therefore, 
NERC asserts that FAC-008-3, Requirements R4 and R5 represent ``an 
administrative task that does little, if anything, to benefit or 
protect the reliable operation of the BES, and has the potential to 
implicate commercially sensitive issues.'' \52\ NERC concludes that 
``the ERO compliance program would gain efficiencies by no longer 
having to track whether requests for technical review had occurred, 
comments provided and reallocate time and resources to monitoring the 
Transmission Owner's or Generator Owner's adherence to substantive 
requirements of FAC-008-3.'' \53\
---------------------------------------------------------------------------

    \51\ Id.
    \52\ Id. at 41.
    \53\ Id.
---------------------------------------------------------------------------

    47. We propose to approve the retirement of FAC-008-03, 
Requirements R4 and R5 based on NERC's explanation that Requirements R4 
and R5 impose an administrative task that provides little protection 
for Bulk-Power System reliability. The retirement of Requirements R4 
and R5 will not relieve a transmission owner or generator owner of the 
obligation to have documentation supporting its facility ratings 
methodology.
    Requirements R4 and R5, therefore, impose a compliance burden with 
little attendant reliability benefit.
    48. FAC-010-2.1, Requirement R5--System Operating Limits 
Methodology for the Planning Horizon:

R5. If a recipient of the SOL Methodology provides documented 
technical comments on the methodology, the Planning Authority shall 
provide a documented response to that recipient within 45 calendar 
days of receipt of those comments. The response shall indicate 
whether a change will be made to the SOL Methodology and, if no 
change will be made to that SOL Methodology, the reason why.

    49. NERC states that the reliability purpose of FAC-010-2.1 is to 
ensure that system operating limits used in the reliable planning of 
the bulk electric system are determined based on an established 
methodology.\54\ NERC asserts that the reliability purpose of FAC-010-
2.1 will be unaffected by the retirement of Requirement R5. NERC states 
that ``[t]he retirement of FAC-010-2.1 R5 does not create a reliability 
gap, because the Planning Authority must comply with the substantive 
requirements of FAC-010-2.1 whether or not the exchange envisioned by 
FAC-010-2.1 R5 occurs.'' \55\
---------------------------------------------------------------------------

    \54\ Id. at 43. The NERC Glossary of Terms Used in Reliability 
Standards defines ``system operating limit'' as:
    The value (such as MW, MVar, Amperes, Frequency or Volts) that 
satisfies the most limiting of the prescribed operating criteria for 
a specified system configuration to ensure operation within 
acceptable reliability criteria.
    \55\ Exhibit E at 43.
---------------------------------------------------------------------------

    50. NERC states that ``FAC-010- 2.1 R5 sets forth an administrative 
task that does little, if anything, to benefit or protect the reliable 
operation of the BES, and has the potential to implicate commercially 
sensitive issues.'' \56\ According to NERC, ``a Planning Authority's 
time and resources would be better spent complying with the substantive 
requirements of FAC-010-2.1.'' \57\ NERC concludes that ``the ERO 
compliance program would gain efficiencies by no longer having to track 
whether requests for technical review had occurred, comments provided 
and reallocate time and resources to monitoring the Planning 
Authority's

[[Page 38857]]

adherence to substantive requirements of FAC-010-2.1.'' \58\
---------------------------------------------------------------------------

    \56\ Id.
    \57\ Id.
    \58\ Id.
---------------------------------------------------------------------------

    51. We propose to approve the retirement of FAC-010-2.1, 
Requirement R5 based on NERC's explanation that Requirement R5 imposes 
an administrative task that provides little protection for Bulk-Power 
System reliability. The retirement of Requirement R5 will not relieve a 
planning authority of the obligation to document its system operating 
limits methodology under the remaining provisions of FAC-010-2.1. In 
addition, the retirement of Requirement R5 will not relieve a planning 
authority from its obligation pursuant to Requirement R4 of the 
standard to provide its system operating limits methodology, including 
any changes to the methodology, to the appropriate entities prior to 
the effective date of any such change. Based on the explanation in 
NERC's petition, Requirement R5 imposes a compliance burden with little 
attendant reliability benefit.
    52. FAC-011-2.1, Requirement R5--System Operating Limits 
Methodology for the Operations Horizon:

R5. If a recipient of the SOL Methodology provides documented 
technical comments on the methodology, the Reliability Coordinator 
shall provide a documented response to that recipient within 45 
calendar days of receipt of those comments. The response shall 
indicate whether a change will be made to the SOL Methodology and, 
if no change will be made to that SOL Methodology, the reason why.

    53. NERC states that FAC-011-2 Requirement R5 requires that, when a 
reliability coordinator receives comments on its system operating limit 
methodology, the reliability coordinator must respond and indicate 
whether it has changed its methodology. According to NERC, the 
``retirement of FAC-011-2 R5 does not create a reliability gap, because 
the Reliability Coordinator must comply with the substantive 
requirements of FAC-011-2 R5 [sic] whether or not the exchange 
envisioned by FAC-011-2 R5 occurs.'' \59\ NERC maintains that ``FAC-
011-2 R5 may support an avenue to advance commercial interests.'' \60\
---------------------------------------------------------------------------

    \59\ Id. at 45.
    \60\ Id.
---------------------------------------------------------------------------

    54. NERC states that FAC-011-2, Requirement R5 sets forth an 
administrative task that does little, if anything, to benefit or 
protect the reliable operation of the BES. NERC asserts that 
``[i]nstead of spending time and resources on FAC-011-2 R5 a 
Reliability Coordinator's time and resources would be better spent 
complying with the substantive requirements'' of FAC-011-2.\61\ NERC 
concludes that ``the ERO compliance program would gain efficiencies by 
no longer having to track whether requests for technical review had 
occurred, comments provided and reallocate time and resources to 
monitoring the Reliability Coordinator's adherence to substantive 
requirements'' of FAC-011-2.\62\
---------------------------------------------------------------------------

    \61\ Id. at 46.
    \62\ Id.
---------------------------------------------------------------------------

    55. We propose to approve the retirement of FAC-011-2, Requirement 
R5 based on NERC's explanation that Requirement R5 imposes an 
administrative task that provides little protection for Bulk-Power 
System reliability. The retirement of Requirement R5 will not relieve a 
reliability coordinator of the obligation to document its system 
operating limits methodology under the remaining provisions of FAC-011-
2. In addition, the retirement of Requirement R5 will not relieve a 
reliability coordinator from its obligation pursuant to Requirement R4 
of the standard to provide its system operating limits methodology, 
including any changes to the methodology, to the appropriate entities 
prior to the effective date of any such change. Based on the 
explanation in NERC's petition, Requirement R5 imposes a compliance 
burden with little attendant reliability benefit.
    56. FAC-013-2, Requirement R3--Assessment of Transfer Capability 
for the Near-term Transmission Planning Horizon:

R3. If a recipient of the Transfer Capability methodology provides 
documented concerns with the methodology, the Planning Coordinator 
shall provide a documented response to that recipient within 45 
calendar days of receipt of those comments. The response shall 
indicate whether a change will be made to the Transfer Capability 
methodology and, if no change will be made to that Transfer 
Capability methodology, the reason why.

    57. NERC states that FAC-013-2, Requirement R3 is a needlessly 
burdensome administrative task that does little, if anything, to 
benefit or protect the reliable operation of the BES. NERC explains 
FAC-013-2, Requirement R1 and its associated sub-requirements set forth 
the information that each Planning Authority must include when 
developing its transfer capability methodology. NERC explains further 
``FAC-013-2 R3 sets forth a requirement that if an entity comments on 
this methodology, the Planning Authority must respond and indicate 
whether or not it will make a change to its Transfer Capability 
methodology.'' \63\ NERC concludes, ``while R1 sets forth substantive 
requirements, R3 sets forth more of an administrative task of the 
Planning Authority responding to comments on its methodology.'' \64\
---------------------------------------------------------------------------

    \63\ Id. at 48.
    \64\ Id.
---------------------------------------------------------------------------

    58. NERC states that ``it would seem unnecessarily burdensome to 
engage in the exchange of comments, given there is no nexus between the 
exchange and compliance with the substantive requirements of FAC-013-
2.'' \65\ According to NERC, issues regarding an entity's transfer 
capability methodology should be raised in the context of the receipt 
of transmission services, not the Reliability Standards.\66\ NERC 
asserts that time and resources would be better spent complying with 
the substantive requirements of FAC-013-2. NERC concludes that ``the 
ERO compliance program would gain efficiencies by no longer having to 
track whether requests for technical review had occurred, comments 
provided and reallocate time and resources to monitoring the 
Reliability Coordinator's adherence to substantive requirements of FAC-
013-2.'' \67\
---------------------------------------------------------------------------

    \65\ Id. at 49.
    \66\ Id.
    \67\ Id.
---------------------------------------------------------------------------

    59. We propose to approve the retirement of FAC-013-2, Requirement 
R3 based on NERC's explanation that Requirement R3 imposes an 
administrative task that provides little protection for Bulk-Power 
System reliability. The retirement of Requirement R3 will not relieve a 
planning coordinator of the obligation to document its transfer 
capability methodology under the remaining provisions of FAC-013-2. In 
addition, the retirement of Requirement R3 will not relieve a planning 
coordinator from its obligation pursuant to Requirement R2 of the 
standard to provide its transfer capability methodology, including any 
changes to the methodology, to the appropriate entities prior to the 
effective date of any such change. Based on the explanation in NERC's 
petition, Requirement R3 imposes a compliance burden with little 
attendant reliability benefit.
Interchange Scheduling and Coordination Reliability Standards
    60. INT-007-1, Requirement R1.2--Interchange Confirmation:

R1.2. All reliability entities involved in the Arranged Interchange 
are currently in the NERC registry.


[[Page 38858]]


    61. NERC states that the reliability purpose of INT-007-1 is to 
ensure that each arranged interchange is checked for reliability before 
it is implemented. NERC maintains that the reliability purpose of INT-
007-1 ``is unaffected by the proposed retirement of Requirement R1.2'' 
and avers that ``Requirement R1.2 is an administrative task that is now 
outdated.''\68\
---------------------------------------------------------------------------

    \68\ Petition at 26.
---------------------------------------------------------------------------

    62. Specifically, NERC explains ``[a]t one time, the identification 
number came from the NERC Transmission System Information Network 
(``TSIN'') system, which is now handled via the NAESB Electric Industry 
Registry.'' \69\ NERC explains further that ``under the E-Tag 
protocols, no entity may engage in an Interchange transaction without 
first registering with the E-Tag system and receiving an identification 
number'' and the E-tag identification number is used to pre-qualify and 
engage in an Arranged Interchange.\70\ NERC concludes that the task set 
forth in INT-007-1 Requirement R1.2 is an outdated activity that is no 
longer necessary, and therefore the proposed retirement of Requirement 
R1.2 presents no reliability gap.
---------------------------------------------------------------------------

    \69\ Id.
    \70\ Id. at 26-27.
---------------------------------------------------------------------------

    63. We propose to approve the retirement of INT-007-1, Requirement 
R1.2 based on NERC's explanation that Requirement R1.2 is an outdated 
administrative task that provides little protection for Bulk-Power 
System reliability. The identification of entities engaging in arranged 
interchange transactions is now addressed through the NAESB Electric 
Industry Registry, and the registration for such transactions is now 
handled through the E-Tag system. The retirement of INT-007-1, 
Requirement R1.2 will not result in a gap in reliability.
Interconnection Reliability Operations and Coordination Reliability 
Standards
    64. IRO-016-1, Requirement R2--Coordination of Real-Time Activities 
Between Reliability Coordinators:

R2. The Reliability Coordinator shall document (via operator logs or 
other data sources) its actions taken for either the event or for 
the disagreement on the problem(s) or for both.

    65. NERC states that IRO-016 establishes requirements for 
coordinated real-time operations, including: (1) Notification of 
problems to neighboring reliability coordinators and (2) discussions 
and decisions for agreed-upon solutions for implementation. NERC 
explains that the reliability purpose of IRO-016-1 is to ensure that 
each reliability coordinator's operations are coordinated such that 
they will not have an adverse reliability impact on other reliability 
coordinator areas and to preserve the reliability benefits of 
interconnected operations. NERC asserts that ``Requirement R2 is an 
administrative task and the proposed retirement will not adversely 
impact reliability'' and, ``[t]herefore, the reliability purpose of 
IRO-016-1 is unaffected by the proposed retirement of Requirement R2.'' 
\71\
---------------------------------------------------------------------------

    \71\ Id. at 28.
---------------------------------------------------------------------------

    66. In addition, NERC notes that NERC and the Regional Entities 
have the authority to require an entity to submit data and information 
for purposes of monitoring compliance under section 400 of the NERC 
Rules of Procedure. NERC asserts, therefore, that ``the retirement of 
IRO-016-1 Requirement R2 does not affect the ability for NERC and the 
Regional Entities to require Reliability Coordinators to produce 
documentation to demonstrate compliance with IRO-016-1 Requirement R1 
and its sub-requirements.'' \72\ NERC concludes that ``retiring IRO-
016-1 Requirement R2 presents no gap to reliability or to the 
information NERC and the Regional Entities need to monitor 
compliance.'' \73\
---------------------------------------------------------------------------

    \72\ Id. at 28-29.
    \73\ Id. at 29.
---------------------------------------------------------------------------

    67. We propose to approve the retirement of IRO-016-1, Requirement 
R2 based on NERC's assertion that Requirement R2 establishes an 
administrative task that provides little protection for Bulk-Power 
System reliability. Specifically, the retirement of IRO-016-1, 
Requirement R2 will not interfere with the substantive aspects of the 
Reliability Standard found in Requirement R1. We also note that Part D, 
Section 1.3 of the standard establishes for reliability coordinators a 
data retention obligation with respect to the substantive aspects of 
the standard. The retirement of Requirement R2 will not have an adverse 
effect on reliability, nor will retirement inhibit the ability of NERC 
or the Regional Entities to seek documentation to assess compliance 
with the reliability standard.
Nuclear Reliability Standards
    68. NUC-001-2, Requirements R9.1, R9.1.1, R9.1.2, R9.1.3, and 
R1.9.4--Nuclear Plant Interface Coordination:

R9.1. Administrative elements:
R9.1.1. Definitions of key terms used in the agreement.
R9.1.2. Names of the responsible entities, organizational 
relationships, and responsibilities related to the NPIRs.
R9.1.3. A requirement to review the agreement(s) at least every 
three years.
R9.1.4. A dispute resolution mechanism.

    69. NERC states that the reliability purpose of NUC-001-2 is to 
ensure the coordination between nuclear plant generator operators and 
transmission entities for nuclear plant safe operation and shutdown. 
NERC explains that Requirement 9.1 and its sub-requirements specify 
certain administrative elements that must be included in the agreement 
(required in Requirement R2) between the nuclear plant generator 
operator and the applicable transmission entities.\74\ NERC maintains 
that the reliability purpose of NUC-001-2 is unaffected by the proposed 
retirement of Requirements 9.1, 9.1.1, 9.1.2, 9.1.3 and 9.1.4.
---------------------------------------------------------------------------

    \74\ Id. at 30.
---------------------------------------------------------------------------

    70. NERC asserts that Requirement R9.1 and its sub-requirements are 
administrative tasks and the proposed retirement of these Requirements 
will not adversely impact reliability. NERC states further that 
``requiring via a mandatory Reliability Standard the inclusion of 
boilerplate provisions is unnecessarily burdensome relative to the 
other significant requirements in NUC-001-2 that pertain to performance 
based reliability coordination and protocols between Transmission 
Entities and Nuclear Plant Generator Operators.'' \75\ NERC indicates 
that the information required by these requirements is likely in modern 
agreements anyway. NERC concludes that the retirement of NUC-001-2, 
Requirement R9.1 and its sub-requirements ``creates no reliability 
gap.'' \76\
---------------------------------------------------------------------------

    \75\ Id.
    \76\ Id.
---------------------------------------------------------------------------

    71. We propose to approve the retirement of NUC-001-2, Requirements 
9.1, 9.1.1, 9.1.2, 9.1.3 and 9.1.4 based on NERC's explanation that 
Requirement 9.1 and its sub-requirements reflect administrative 
elements currently required to be included in the nuclear plant 
interface requirements between a nuclear plant generator operator and 
applicable transmission entities. The administrative elements required 
under Requirement 9.1 and its sub-requirements do not relate to the 
substantive, technical requirements of NUC-001-2 (i.e., technical 
requirements and analysis, operations and maintenance coordination, and 
communications and training), and provide little protection for Bulk-
Power System reliability.

[[Page 38859]]

Protection and Control Reliability Standards
    72. PRC-010-0, Requirement R2--Assessment of the Design and 
Effectiveness of UVLS Programs:

R2. The Load-Serving Entity, Transmission Owner, Transmission 
Operator, and Distribution Provider that owns or operates a UVLS 
program shall provide documentation of its current UVLS program 
assessment to its Regional Reliability Organization and NERC on 
request (30 calendar days).

    73. NERC explains that PRC-010-0 requires certain registered 
entities to periodically conduct and document an assessment of the 
effectiveness of their under voltage load shedding (UVLS) program at 
least every five years or as required by changes in system conditions. 
NERC states that the purpose of PRC-010-0 is to provide system 
preservation measures to prevent system voltage collapse or voltage 
instability by implementing an UVLS program. NERC asserts that it and 
the Regional Entities have the authority under section 400 of the NERC 
Rules of Procedure ``to require an entity to submit documentation of 
its current UVLS program assessment for purposes of monitoring 
compliance.'' \77\
---------------------------------------------------------------------------

    \77\ Id. at 32.
---------------------------------------------------------------------------

    74. NERC states further that the retirement of PRC-010-0, 
Requirement R2 does not affect the ability of NERC and the Regional 
Entities to require reliability coordinators to produce documentation 
to monitor compliance with PRC-010-0. Specifically, NERC explains that 
PRC-010-0, Requirement R1 requires entities to ``document an assessment 
of the effectiveness of its UVLS program[.]'' \78\ NERC concludes that 
the retirement of PRC-010-0, Requirement R2 ``presents no reliability 
gap.'' \79\
---------------------------------------------------------------------------

    \78\ Id.
    \79\ Id.
---------------------------------------------------------------------------

    75. We propose to approve the retirement of PRC-010-0, Requirement 
R2 based on NERC's explanation that the administrative task imposed 
under Requirement R2 is redundant with NERC and the Regional Entity 
authority under section 400 of the NERC Rules of Procedure. Requirement 
R1 of PRC-010-0 sets forth the substantive requirements for applicable 
entities to periodically conduct and document an assessment of the 
effectiveness of its UVLS program. Requirement R2 dictates that an 
entity must provide documentation of its current assessment to NERC 
and/or the appropriate Regional Reliability Organization upon request. 
The retirement of PRC-010-0, Requirement R2 will not hamper the ability 
of NERC or the Regional Entities to compel the production of the 
assessments required under Requirement R1 since these entities may 
obtain this information pursuant to section 400 of the NERC Rules of 
Procedure.
    76. PRC-022-1, Requirement R2--Under-Voltage Load Shedding Program 
Performance:

R2. Each Transmission Operator, Load-Serving Entity, and 
Distribution Provider that operates a UVLS program shall provide 
documentation of its analysis of UVLS program performance to its 
Regional Reliability Organization within 90 calendar days of a 
request.

    77. NERC states that the purpose of Reliability Standard PRC-022-1 
is to ensure that UVLS programs perform as intended to mitigate the 
risk of voltage collapse or voltage instability in the bulk electric 
system. NERC explains that PRC-022-1, Requirement R2 requires entities 
to provide documentation of its analysis of its UVLS program 
performance within 90 days of request. NERC maintains that the 
retirement of Requirement R2 ``does not affect the ability of NERC to 
require Reliability Coordinators to produce documentation to monitor 
compliance with PRC-022-1 Requirement R1 and its sub-requirements.'' 
\80\
---------------------------------------------------------------------------

    \80\ Id. at 33.
---------------------------------------------------------------------------

    78. Specifically, NERC explains that PRC-022-1, Requirement R1 
requires that the entity document the performance of its UVLS program. 
NERC avers that the retirement of PRC-022-1, Requirement R2 ``is 
consistent with reliability principles and will not result in a gap in 
reliability as NERC has the ability to request [the information 
documented under PRC-022-1, Requirement R2] pursuant to Section 400 of 
the NERC Rules of Procedure.'' \81\ NERC concludes that ``[t]he ERO 
compliance program efficiency will increase since it will no longer 
need to track a static requirement of whether a UVLS program assessment 
was submitted within [90] days of a request by NERC or the Regional 
Entity, and instead, compliance monitoring may focus on the more 
substantive requirements of PRC-022-1.'' \82\
---------------------------------------------------------------------------

    \81\ Id.
    \82\ Id.
---------------------------------------------------------------------------

    79. We propose to approve the retirement of PRC-022-1, Requirement 
R2 based on NERC's explanation that the administrative task imposed 
under Requirement R2 is redundant with NERC's and the Regional 
Entities' authority under section 400 of the NERC Rules of Procedure. 
Requirement R1 of PRC-022-1 sets forth the substantive requirements for 
each applicable entity to document its analysis of the performance of 
its UVLS program. The retirement of PRC-022-1, Requirement R2 will not 
hamper the ability of NERC or the Regional Entities to compel the 
production of the analysis required under Requirement R1 since they may 
obtain this information pursuant to section 400 of the NERC Rules of 
Procedure.
Voltage and Reactive Reliability Standards
    80. VAR-001-2, Requirement R5--Voltage and Reactive Control:

R5. Each Purchasing-Selling Entity and Load Serving Entity shall 
arrange for (self-provide or purchase) reactive resources--which may 
include, but is not limited to, reactive generation scheduling; 
transmission line and reactive resource switching; and controllable 
load--to satisfy its reactive requirements identified by its 
Transmission Service Provider.

    81. NERC states that the retirement of VAR-001-2, Requirement R5 is 
consistent with reliability principles since the requirement is 
redundant with the Commission's pro forma open access transmission 
tariff (OATT) and the reliability objective is achieved via VAR-001-2, 
Requirement R2. NERC notes that Requirement R5 provides for 
transmission customers to self-provide or purchase reactive resources 
as required under Schedule 2 of the OATT. NERC states that a review of 
Requirement R5 and Schedule 2 ``indicates that the reliability 
objective of ensuring that [purchasing-selling entities] as well as 
[load serving entities] either acquire or self provide reactive power 
resources associated with transmission service requests is accomplished 
via Schedule 2[.]'' \83\ NERC also explains that ``in the Electric 
Reliability Council of Texas (ERCOT) region, where there is no FERC 
approved OATT, reactive power is handled via Section 3.15 of the ERCOT 
Nodal Protocols that describes how ERCOT establishes a Voltage Profile 
for the grid, and then in detail explains the responsibilities of the 
Generators, Distribution Providers and Texas Transmission Service 
Providers (not to be confused with a NERC TSP), to meet the Voltage 
Profile and ensure that those entities have sufficient reactive support 
to do so.'' \84\ NERC maintains that there is no need to reiterate the 
obligation to arrange for reactive resources in VAR-001-2, Requirement 
R5.
---------------------------------------------------------------------------

    \83\ Id. at 36.
    \84\ Id. at 37.

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

[[Page 38860]]

    82. In addition, NERC states that the reliability objective of VAR-
001-2 is also addressed by VAR-001-2, Requirement R2.\85\ NERC asserts 
that ``[t]he Transmission Operator's adherence to Requirement R2 is a 
double-check for the obligations under Schedule 2 to ensure there are 
sufficient reactive power resources to protect the voltage levels under 
normal and Contingency conditions.'' \86\ NERC adds that the ``double 
check'' under Requirement R2 ``does not relieve [purchasing-selling 
entities] and [load serving entities] from their obligations under 
Schedule 2 of the [open access transmission tariff] or Interchange 
agreements.'' \87\
---------------------------------------------------------------------------

    \85\ Reliability Standard VAR-001-2, Requirement R2 provides, 
inter alia, ``Each Transmission Operator shall acquire sufficient 
reactive resources . . . within its area to protect the voltage 
levels under normal and Contingency conditions.''
    \86\ Petition at 36-37.
    \87\ Id. at 37.
---------------------------------------------------------------------------

    83. We propose to approve the retirement of VAR-001-2, Requirement 
R5 based on NERC's assertion that Requirement R5 is redundant with 
provisions of the pro forma OATT. Specifically, Schedule 2 of the open 
access transmission tariff requires transmission providers to provide 
reactive power resources, either directly or indirectly, and requires 
transmission customers to either purchase or self-supply reactive power 
resources.\88\ A similar requirement is found in the ERCOT Nodal 
Protocols that established the voltage profile for the grid within the 
ERCOT region.\89\ In addition, VAR-001-2, Requirement R2 requires 
transmission operators to acquire sufficient reactive resources to 
protect voltage levels under normal and contingency conditions. Thus, 
the retirement of VAR-001-2, Requirement R5 will not result in a 
reliability gap.
---------------------------------------------------------------------------

    \88\ See, Preventing Undue Discrimination and Preference in 
Transmission Service, Order No. 890-B, 123 FERC ] 61,299 (2008), Pro 
Forma OATT Schedule 2 (Reactive Supply and Voltage Control from 
Generation or Other Sources Service).
    \89\ See ERCOT Nodal Protocols, Section 3.15 (Voltage Support).
---------------------------------------------------------------------------

    84. We seek comment on our proposal to approve the retirement of 
the 34 requirements discussed above.

B. Outstanding Directives

    85. Since the issuance of Order No. 693, the Commission has issued 
a number of directives that require NERC to take certain actions. In an 
effort to make better use of NERC's and the Commission's resources, the 
Commission has identified 41 of the outstanding directives that the 
Commission believes are no longer necessary to assure the reliable 
operation of the Bulk-Power System. As a result, we propose to withdraw 
the 41 outstanding directives. Attachment A to this NOPR identifies 
each directive and provides an explanation why we are proposing to 
withdraw the directive.\90\
---------------------------------------------------------------------------

    \90\ Each directive identified in Attachment A includes a ``NERC 
Reference Number.'' Commission staff and NERC staff have developed a 
common approach to identifying and tracking outstanding Commission 
directives. The NERC Reference Numbers reflect this joint tracking 
process.
---------------------------------------------------------------------------

    86. We used the following three criteria in identifying the 41 
outstanding directives for withdrawal: (1) The reliability concern 
underlying the outstanding directive has been addressed in some manner, 
rendering the directive stale; (2) the outstanding directive provides 
general guidance for standards development rather than a specific 
directive; and (3) the outstanding directive is redundant with another 
directive. Each of the 41 outstanding directives identified in 
Attachment A satisfies one or more of these criteria.
    87. Therefore, we propose to withdraw the 41 directives listed in 
Attachment A in the interest of enhancing the efficiency of the ERO 
standards development process and reducing unnecessary burdens. We seek 
comment on our proposal to withdraw the listed directives. In 
particular, we seek comment on whether withdrawing the 41 directives 
could have a detrimental effect on the reliability of the bulk electric 
system.

IV. Information Collection Statement

    88. The information collection requirements contained in this 
Proposed Rule are subject to review by the Office of Management and 
Budget (OMB) under section 3507(d) of the Paperwork Reduction Act of 
1995.\91\ OMB's regulations require approval of certain information 
collection requirements imposed by agency rules.\92\ Upon approval of a 
collection of information, OMB will assign an OMB control number and 
expiration date. 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. 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.
---------------------------------------------------------------------------

    \91\ 44 U.S.C. 3507(d) (2006).
    \92\ 5 CFR 1320.11 (2012).
---------------------------------------------------------------------------

    89. The Commission based its paperwork burden estimates on the NERC 
compliance registry as of April 30, 2013.\93\ According to the 
registry, there are 132 balancing authorities, 544 distribution 
providers, 898 generator owners, 859 generator operators, 56 
interchange authorities, 515 load serving entities, 80 planning 
authorities/planning coordinators, 677 purchasing selling entities, 21 
reliability coordinators, 346 transmission owners, 185 transmission 
operators, 185 transmission planners, and 93 transmission service 
providers.
---------------------------------------------------------------------------

    \93\ The estimates for the retired CIP requirements are based on 
February 28, 2013 registry data in order to provide consistency with 
burden estimates provided in the Commission's recent CIP version 5 
Notice of Proposed Rulemaking in Docket No. RM13-5-000.
---------------------------------------------------------------------------

    90. The Commission estimates that the burden will be reduced for 
each requirement as dictated in the chart below, for a total estimated 
reduction in burden of $535,500. The Commission based the burden 
reduction estimates on staff experience, knowledge, and expertise.

[[Page 38861]]



----------------------------------------------------------------------------------------------------------------
                                                                      Average
                                                                   reduction in      Estimated       Estimated
 Standard, requirement number,       Type of         Number of     burden hours    total annual    total annual
  and FERC collection number       respondents      respondents    estimate per    reduction in    reduction in
                                                     \94\ [A]     respondent per    burden  (in    cost [A x B x
                                                                     year [B]     hours) [A x B]  $60/hour \95\]
----------------------------------------------------------------------------------------------------------------
EOP-005-2, R3.1 (FERC-725A)...  TOP.............             185               1             185          11,100
FAC-008-3, R4 (FERC-725A).....  TO, GO..........           1,151               1           1,151          69,060
FAC-008-3, R5 (FERC-725A).....  TO, GO..........           1,151               1           1,151          69,060
FAC-010-2.1, R5 (FERC-725D)...  PA..............              80              20           1,600          96,000
FAC-011-2, R5 (FERC-725D).....  RC..............              21              20             420          25,200
FAC-013-2, R3 (FERC-725A).....  PC..............              80               8           1,600          96,000
INT-007-1, R1.2 (FERC-725A)...  IA..............              56              20             448          26,880
IRO-016-1, R2 (FERC-725A).....  RC..............              21              20             420          25,200
CIP-003-3, -4, R1.2 (FERC-      RC, BA, IA, TSP,             325               1             325          19,500
 725B).                          TO, TOP, GO,
                                 GOP, LSE,.
CIP-003-3, -4, R3, R3.1, R3.2,  RC, BA, IA, TSP,             325               1             325          19,500
 R3.3 (FERC-725B).               TO, TOP, GO,
                                 GOP, LSE,.
CIP-005-3, -4, R2.6 (FERC-      RC, BA, IA, TSP,             325               4            1300          78,000
 725B).                          TO, TOP, GO,
                                 GOP, LSE,.
    Total.....................  ................  ..............  ..............           8,925         535,500
----------------------------------------------------------------------------------------------------------------

    91. The above chart does not include BAL-005-0.2b, Requirement R2; 
CIP-003-3, -4, Requirement R4.2, CIP-007-3, -4, Requirement R7.3, FAC-
002-1, Requirement R2; PRC-010-0, Requirement R2; PRC-022-1, 
Requirement R2; and VAR-001-2, Requirement R5 because those 
requirements were found redundant with other requirements.\96\ Since 
the action required within them is required elsewhere there is no 
change in the overall burden in retiring these requirements. Likewise, 
NUC-001-2, Requirement R9.1; NUC-001-2, Requirement R9.1.1; NUC-001-2, 
Requirement R9.1.2; NUC-001-2, Requirement R9.1.3; and NUC-001-2, 
Requirement R9.1.4 are not included because these requirements require 
that the applicable entities put boiler plate language into their 
agreements that is normally included in all legal contracts.\97\ Since 
this action will be taken regardless if it is required by a NERC 
Reliability, there is no reduction in burden.
---------------------------------------------------------------------------

    \94\ This number was calculated by adding all the applicable 
entities while removing double counting caused by entities 
registered under multiple functions.
    \95\ The estimated hourly loaded cost (salary plus benefits) for 
an engineer is assumed to be $60/hour, based on salaries as reported 
by the Bureau of Labor Statistics (BLS) (http://bls.gov/oes/current/naics2_22.htm). Loaded costs are BLS rates divided by 0.703 and 
rounded to the nearest dollar (http://www.bls.gov/news.release/ecec.nr0.htm).
    \96\ The reporting requirements in these standards are part of 
the FERC-725A information collection.
    \97\ The reporting requirements in this standard are part of the 
FERC-725F information collection.
---------------------------------------------------------------------------

    Titles: FERC-725A, Mandatory Reliability Standards for the Bulk 
Power System; FERC-725B, Mandatory Reliability Standards for Critical 
Infrastructure Protection; FERC-725D, Facilities, Design, Connections, 
and Maintenance Reliability Standards; and FERC-725F, Mandatory 
Reliability Standards for Nuclear Plant Interface Coordination.
    Action: Proposed Collection of Information.
    OMB Control Nos: 1902-0244, 1902-0248, 1902-0247, and 1902-0249.
    Respondents: Business or other for profit, and not for profit 
institutions.
    Frequency of Responses: On occasion.
    92. Necessity of the Information: This proceeding proposes to 
approve the retirement of the 34 requirements within 19 Reliability 
Standards identified by NERC. The proposed retirements either: (1) 
Provide little protection for Bulk-Power System reliability or (2) are 
redundant with other aspects of the Reliability Standards. In addition, 
we propose to withdraw the 47 currently outstanding directives listed 
in Attachment A in the interest of enhancing the efficiency of the ERO 
standard development and compliance programs, as well as the efficiency 
of individual registered entity compliance programs.
    93. Internal review: The Commission has reviewed NERC's proposal 
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 reduction estimates associated with the retired information 
requirements.
    94. 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: Ellen Brown, email: [email protected], phone: 
(202) 502-8663, fax: (202) 273-0873].
    95. Comments concerning the information collections proposed in 
this NOPR and the associated burden estimates, should be sent to the 
Commission in this docket and may also be sent to the Office of 
Management and Budget, Office of Information and Regulatory Affairs 
[Attention: Desk Officer for the Federal Energy Regulatory Commission]. 
For security reasons, comments should be sent by email to OMB at the 
following email address: [email protected]. Please reference 
one of the OMB Control Numbers and the docket number of this Notice of 
Proposed Rulemaking (Docket No. RM13-8-000) in your submission.

V. Regulatory Flexibility Act Certification

    96. The Regulatory Flexibility Act of 1980 (RFA) \98\ generally 
requires a description and analysis of proposed rules that will have 
significant economic impact on a substantial number of small entities. 
The RFA mandates consideration of regulatory alternatives that 
accomplish the stated objectives of a proposed rule and that minimize 
any significant economic impact on a substantial number of small 
entities. The Small Business Administration's Office of Size Standards 
develops the numerical definition of a small business.\99\ The Small 
Business Administration has established a size standard for electric 
utilities, stating that a firm is small if, including its affiliates, 
it is primarily engaged in the transmission, generation and/or 
distribution of electric energy for

[[Page 38862]]

sale and its total electric output for the preceding twelve months did 
not exceed four million megawatt hours (MWh).\100\
---------------------------------------------------------------------------

    \98\ 5 U.S.C. 601-612 (2006).
    \99\ 13 CFR 121.101 (2012).
    \100\ 13 CFR 121.201, Sector 22, Utilities & n.1.
---------------------------------------------------------------------------

    97. The Commission seeks comment on the estimated impact of the 
proposed reduction of requirements on small business entities. The 
Commission estimates the total reduction in burden for all small 
entities to be $36,060. The Commission estimates that small planning 
authorities/planning coordinators will see a reduction of $2,400 per 
entity per year, greater than for other affected small entities 
types.\101\ The Commission does not consider $2,400 per year to be a 
significant economic impact. The Commission believes that, in addition 
to the estimated economic impact, the proposed retirement of the 34 
requirements of mandatory Reliability Standards will provide small 
entities with relief from having to track compliance with these 
provisions and preparing to show compliance in response to a potential 
compliance audit by a Regional Entity or other regulator.
---------------------------------------------------------------------------

    \101\ The burden reduction for planning authorities/planning 
coordinators is based on the retirement of FAC-010-2.2, Requirement 
R5 and FAC-013-2, Requirement R3. Based on the NERC Compliance 
Registry and Energy Information Administration Form EIA-861 data, 
the Commission estimates that 5 out of the 80 planning authorities/
planning coordinators meet the definition of a small entity.
---------------------------------------------------------------------------

    98. Based on the above, the Commission certifies that the proposed 
Reliability Standards will not have a significant impact on a 
substantial number of small entities. Accordingly, no initial 
regulatory flexibility analysis is required.

VI. Environmental Analysis

    99. The Commission is required to prepare an Environmental 
Assessment or an Environmental Impact Statement for any action that may 
have a significant adverse effect on the human environment.\102\ The 
Commission has categorically excluded certain actions from this 
requirement as not having a significant effect on the human 
environment. Included in the exclusion are rules that are clarifying, 
corrective, or procedural or that do not substantially change the 
effect of the regulations being amended.\103\ The actions proposed here 
fall within this categorical exclusion in the Commission's regulations.
---------------------------------------------------------------------------

    \102\ Regulations Implementing the National Environmental Policy 
Act of 1969, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. 
& Regs., Regulations Preambles 1986-1990 ] 30,783 (1987).
    \103\ 18 CFR 380.4(a)(2)(ii) (2012).
---------------------------------------------------------------------------

VII. Comment Procedures

    100. The Commission invites interested persons to submit comments 
on the matters and issues proposed in this notice to be adopted, 
including any related matters or alternative proposals that commenters 
may wish to discuss. Comments are due August 27, 2013. Comments must 
refer to Docket No. RM13-8-000, and must include the commenter's name, 
the organization they represent, if applicable, and their address in 
their comments.
    101. The Commission encourages comments to be filed electronically 
via the eFiling link on the Commission's Web site at http://www.ferc.gov. The Commission accepts most standard word processing 
formats. Documents created electronically using word processing 
software should be filed in native applications or print-to-PDF format 
and not in a scanned format. Commenters filing electronically do not 
need to make a paper filing.
    102. Commenters that are not able to file comments electronically 
must send an original of their comments to: Federal Energy Regulatory 
Commission, Secretary of the Commission, 888 First Street NE., 
Washington, DC 20426.
    103. All comments will be placed in the Commission's public files 
and may be viewed, printed, or downloaded remotely as described in the 
Document Availability section below. Commenters on this proposal are 
not required to serve copies of their comments on other commenters.

VIII. Document Availability

    104. 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 (http://www.ferc.gov) 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.
    105. 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.
    106. User assistance is available for eLibrary and the Commission's 
Web site during normal business hours from the Commission's Online 
Support at (202) 502-6652 (toll free at 1-866-208-3676) or email at 
[email protected], or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at 
[email protected].

    By direction of the Commission.
Kimberly D. Bose,
Secretary.

    Note:  Attachment A will not appear in the Code of Federal 
Regulations.

Attachment A

----------------------------------------------------------------------------------------------------------------
          Standard        Order No.          Para               Directive             Justification
----------------------------------------------------------------------------------------------------------------
    Group A--The reliability concern underlying the outstanding directive has been addressed in some manner,
                                          rendering the directive stale
----------------------------------------------------------------------------------------------------------------
1...........  BAL-006...........          693  P 428............  ``Add measures          NERC replaced levels
                                                                   concerning the          of non-compliance
                                                                   accumulation of large   with violation
                                                                   inadvertent             severity levels
                                                                   interchange balances    (VSLs). NERC has
                                                                   and levels of non-      designated VSLs for
                                                                   compliance.'' (NERC     BAL-006.
                                                                   Reference No. 10036).
2...........  EOP-001...........          693  P 565............  ``The Commission        The VSLs listed in EOP-
                                                                   agrees with ISO-NE      001-2.1b and the
                                                                   that the Reliability    Reliability Standard
                                                                   Standard should be      Audit Worksheet for
                                                                   clarified to indicate   EOP-001 require
                                                                   that the actual         evidence of this
                                                                   emergency plan          consideration.
                                                                   elements, and not the
                                                                   ``for consideration''
                                                                   elements of
                                                                   Attachment 1, should
                                                                   be the basis for
                                                                   compliance. However,
                                                                   all of the elements
                                                                   should be considered
                                                                   when the emergency
                                                                   plan is put
                                                                   together.'' (NERC
                                                                   Reference No. 10065).

[[Page 38863]]

 
3...........  INT-004...........          693  P 843............  ``Consider adding       NERC replaced levels
                                                                   levels of non-          of non-compliance
                                                                   compliance to the       with VSLs. VSLs for
                                                                   standard.'' (NERC       INT-004 have been
                                                                   Reference No. 10134).   developed and
                                                                                           approved by the
                                                                                           Commission.
4...........  INT-005...........          693  P 848............  ``Consider adding       NERC replaced levels
                                                                   levels of non-          of non-compliance
                                                                   compliance to the       with VSLs. VSLs for
                                                                   standard.'' (NERC       INT-005 have been
                                                                   Reference No. 10135).   developed and
                                                                                           approved by the
                                                                                           Commission.
5...........  MOD-010 through             693  P 1147...........  ``Direct the ERO to     The concern underlying
               MOD-025.                                            use its authority       the directive has
                                                                   pursuant to Sec.        been addressed
                                                                   39.2(d) of our          through section 1600
                                                                   regulations to          (Requests for Data or
                                                                   require users, owners   Information) of
                                                                   and operators to        NERC's Rules of
                                                                   provide to the          Procedure. The
                                                                   Regional Entity the     Commission approved
                                                                   information related     Section 1600 of
                                                                   to data gathering,      NERC's Rules on
                                                                   data maintenance,       February 21, 2008.
                                                                   reliability
                                                                   assessments and other
                                                                   process-type
                                                                   functions.'' (NERC
                                                                   Reference No. 10266).
6...........  MOD-010...........          693  P 1152...........  ``Address critical      This directive is no
                                                                   energy infrastructure   longer necessary in
                                                                   confidentiality         light of section 1500
                                                                   issues as part of the   (Confidential
                                                                   standard development    Information) of
                                                                   process.'' (NERC        NERC's Rules of
                                                                   Reference No. 10268).   Procedure addressing
                                                                                           treatment of
                                                                                           confidential
                                                                                           information.
7...........  MOD-010...........          693  P 1163...........  ``Direct the ERO to     The concern underlying
                                                                   develop a Work Plan     the directive has
                                                                   that will facilitate    been addressed
                                                                   ongoing collection of   through NERC's
                                                                   the steady-state        Reliability Standards
                                                                   modeling and            Development Plan:
                                                                   simulation data         2013-2015. This plan
                                                                   specified in MOD-011-   was provided to the
                                                                   0.'' (NERC Reference    Commission in an
                                                                   No. 10270).             informational filing
                                                                                           on December 31, 2012.
                                                                                           It contains an action
                                                                                           plan to merge,
                                                                                           upgrade, and expand
                                                                                           existing requirements
                                                                                           in the modeling data
                                                                                           (MOD-010 through MOD-
                                                                                           015) and demand data
                                                                                           (MOD-016 through MOD-
                                                                                           021) Reliability
                                                                                           Standards.
8...........  PRC-017...........          693  P 1546...........  ``Require               Requirement R2 of PRC-
                                                                   documentation           017 already requires
                                                                   identified in           affected entities to
                                                                   Requirement R2 be       provide documentation
                                                                   routinely provided to   of the special
                                                                   NERC or the regional    protection system
                                                                   entity that includes    program and its
                                                                   a requirement that      implementation to the
                                                                   documentation           appropriate Regional
                                                                   identified in           Reliability
                                                                   Requirement R2 shall    Organization and NERC
                                                                   be routinely provided   within 30 calendar
                                                                   to the ERO.'' (NERC     days of a request. If
                                                                   Reference No. 10363).   either the Regional
                                                                                           Entity or NERC
                                                                                           determine that they
                                                                                           need and will use the
                                                                                           information on a
                                                                                           regular schedule,
                                                                                           they have the
                                                                                           authority to
                                                                                           establish a schedule
                                                                                           under the current
                                                                                           requirement.
9...........  Glossary..........          693  P 1895...........  ``Modification to the   The concern underlying
                                                                   glossary that           the directive has
                                                                   enhances the            been addressed
                                                                   definition of           through the NERC
                                                                   ``generator             registration process.
                                                                   operator'' to reflect   See Order No. 693 at
                                                                   concerns of the         P 145.
                                                                   commenters [``to
                                                                   include aspects
                                                                   unique to ISOs, RTOs
                                                                   and pooled resource
                                                                   organizations''].''
                                                                   (NERC Reference No.
                                                                   10005).
10..........  Glossary..........          693  P 1895...........  ``Modification to the   The concern underlying
                                                                   glossary that           the directive has
                                                                   enhances the            been addressed
                                                                   definition of           through the NERC
                                                                   ``transmission          registration process.
                                                                   operator'' to reflect   See Order No. 693 at
                                                                   concerns of the         P 145.
                                                                   commenters [``to
                                                                   include aspects
                                                                   unique to ISOs, RTOs
                                                                   and pooled resource
                                                                   organizations''].''
                                                                   (NERC Reference No.
                                                                   10006).
----------------------------------------------------------------------------------------------------------------
  Group B--The outstanding directive provides general guidance for standards development rather than a specific
                                                    directive
----------------------------------------------------------------------------------------------------------------
11..........  BAL-005...........          693  P 406............  ``The Commission        This paragraph is not
                                                                   understands that it     a directive to change
                                                                   may be technically      or modify a standard.
                                                                   possible for DSM to
                                                                   meet equivalent
                                                                   requirements as
                                                                   conventional
                                                                   generators and
                                                                   expects the
                                                                   Reliability Standards
                                                                   development process
                                                                   to provide the
                                                                   qualifications they
                                                                   must meet to
                                                                   participate.'' (NERC
                                                                   Reference No. 10033).

[[Page 38864]]

 
12..........  BAL-006...........          693  P 438............  ``Examine the WECC      This paragraph is not
                                                                   time error correction   a directive to change
                                                                   procedure as a          or modify a standard.
                                                                   possible guide the
                                                                   Commission asks the
                                                                   ERO, when filing the
                                                                   new Reliability
                                                                   Standard, to explain
                                                                   how the new
                                                                   Reliability Standard
                                                                   satisfies the
                                                                   Commission's
                                                                   concerns.'' (NERC
                                                                   Reference No. 10037).
13..........  COM-001...........          693  P 507............  ``Although we direct    This paragraph is not
                                                                   that the regional       a directive to change
                                                                   reliability             or modify a standard.
                                                                   organization should
                                                                   not be the compliance
                                                                   monitor for NERCNet,
                                                                   we leave it to the
                                                                   ERO to determine
                                                                   whether it is the
                                                                   appropriate
                                                                   compliance monitor or
                                                                   if compliance should
                                                                   be monitored by the
                                                                   Regional Entities for
                                                                   NERCNet User
                                                                   Organizations.''
                                                                   (NERC Reference No.
                                                                   10051).
14..........  MOD-001...........          729  P 20.............  ``We encourage the ERO  This paragraph is not
                                                                   to consider Midwest     a directive to change
                                                                   ISO's and Entegra's     or modify a standard.
                                                                   comments when
                                                                   developing other
                                                                   modifications to the
                                                                   MOD Reliability
                                                                   Standards pursuant to
                                                                   the EROs Reliability
                                                                   Standards development
                                                                   procedure.'' [See
                                                                   also P 198-199] (NERC
                                                                   Reference No. 10216).
15..........  MOD -001, -004, -           729  P 160............  ``In developing the     This paragraph is not
               008, -028, -029, -                                  modifications to the    a directive to change
               030.                                                MOD Reliability         or modify a standard.
                                                                   Standards directed in
                                                                   this Final Rule, the
                                                                   ERO should consider
                                                                   generator nameplate
                                                                   ratings and
                                                                   transmission line
                                                                   ratings including the
                                                                   comments raised by
                                                                   Entegra and ISO/RTO
                                                                   Council.'' [Also see
                                                                   P 154] (NERC
                                                                   Reference No. 10207).
16..........  MOD-001...........          729  P 179............  ``The Commission        This paragraph is not
                                                                   directs the ERO to      a directive to change
                                                                   consider Entegra's      or modify a standard.
                                                                   request regarding
                                                                   more frequent updates
                                                                   for constrained
                                                                   facilities through
                                                                   its Reliability
                                                                   Standards development
                                                                   process.'' (see Order
                                                                   No. 729 at P 177 for
                                                                   Entegra's comments).
                                                                   (NERC Reference No.
                                                                   10211).
17..........  MOD-028...........          729  P 231............  ``The Commission        This paragraph
                                                                   directs the ERO to      clarifies the
                                                                   develop a               Commission's
                                                                   modification sub-       understanding of the
                                                                   requirement R2.2        phrase ``adjacent and
                                                                   pursuant to its         beyond Reliability
                                                                   Reliability Standards   Coordination area.''
                                                                   development process     Since the
                                                                   to clarify the phrase   Commission's
                                                                   `adjacent and beyond    understanding of the
                                                                   Reliability             language is clearly
                                                                   Coordination areas.'    expressed, and the
                                                                   '' (NERC Reference      matter has little
                                                                   No. 10219).             impact on
                                                                                           reliability, there is
                                                                                           no reason to go
                                                                                           forward with the
                                                                                           directive.
18..........  MOD-028...........          729  P 234............  ``The Commission        This paragraph is not
                                                                   agrees that a           a directive to change
                                                                   graduated time frame    or modify a standard.
                                                                   for reposting could
                                                                   be reasonable in some
                                                                   situations.
                                                                   Accordingly, the ERO
                                                                   should consider this
                                                                   suggestion when
                                                                   making future
                                                                   modifications to the
                                                                   Reliability
                                                                   Standards.'' (NERC
                                                                   Reference No. 10220).
19..........  MOD-029...........          729  P 246............  ``The ERO should        This paragraph is not
                                                                   consider Puget          a directive to change
                                                                   Sound's concerns on     or modify a standard.
                                                                   this issue when
                                                                   making future
                                                                   modifications to the
                                                                   Reliability
                                                                   Standards.'' [See
                                                                   also P 245] (NERC
                                                                   Reference No. 10222).
20..........  MOD-030...........          729  P 269............  ``The Commission also   This paragraph is not
                                                                   directs the ERO to      a directive to change
                                                                   make explicit such      or modify a standard.
                                                                   [effective date]
                                                                   detail in any future
                                                                   version of this or
                                                                   any other Reliability
                                                                   Standard.'' (NERC
                                                                   Reference No. 10223).

[[Page 38865]]

 
21..........  MOD-024...........          693  P 1310...........  ``Similarly, we         This paragraph is not
                                                                   respond to              a directive to change
                                                                   Constellation that      or modify a standard.
                                                                   any modification of
                                                                   the Levels of Non-
                                                                   Compliance in this
                                                                   Reliability Standard
                                                                   should be reviewed in
                                                                   the ERO Reliability
                                                                   Standards development
                                                                   process.'' (NERC
                                                                   Reference No. 10318).
22..........  PER-002...........          693  P 1375...........  ``Training programs     This paragraph is not
                                                                   for operations          a directive to change
                                                                   planning and            or modify a standard.
                                                                   operations support
                                                                   staff must be
                                                                   tailored to the needs
                                                                   of the function, the
                                                                   tasks performed and
                                                                   personnel involved.''
                                                                   (NERC Reference No.
                                                                   10329).
23..........  VAR-001...........          693  P 1863...........  ``The Commission        This paragraph is not
                                                                   expects that the        a directive to change
                                                                   appropriate power       or modify a standard.
                                                                   factor range
                                                                   developed for the
                                                                   interface between the
                                                                   bulk electric system
                                                                   and the load-serving
                                                                   entity from VAR-001-1
                                                                   would be used as an
                                                                   input to the
                                                                   transmission and
                                                                   operations planning
                                                                   Reliability
                                                                   Standards.'' (NERC
                                                                   Reference No. 10441).
24..........  VAR-001...........          693  P 1869...........  ``We recognize that     This paragraph is not
                                                                   our proposed            a directive to change
                                                                   modification does not   or modify a standard.
                                                                   identify what
                                                                   definitive
                                                                   requirements the
                                                                   Reliability Standard
                                                                   should use for
                                                                   established limits
                                                                   and sufficient
                                                                   reactive resources.''
                                                                   (NERC Reference No.
                                                                   10434).
25..........  TPL and FAC series          705  P 49.............  ``Direct that any       This paragraph
                                                                   revised TPL             provides guidance on
                                                                   Reliability Standards   an ongoing
                                                                   must reflect            implementation issue
                                                                   consistency in the      and is not a
                                                                   lists of                directive to change
                                                                   contingencies.''        or modify a standard.
                                                                   (NERC Reference No.
                                                                   10601).
----------------------------------------------------------------------------------------------------------------
                     Group C--The outstanding directive is redundant with another directive
----------------------------------------------------------------------------------------------------------------
26..........  MOD-012...........          693  P 1177...........  ``Direct the ERO to     This directive is
                                                                   use its authority       redundant with the
                                                                   pursuant to Sec.        directive in
                                                                   39.2(d) of our          paragraph 1147, which
                                                                   regulations to          has already been
                                                                   require users,          addressed and is
                                                                   owners, and operators   reflected in section
                                                                   to provide to the       A above.
                                                                   Regional Entities the
                                                                   information related
                                                                   to data gathering,
                                                                   data maintenance,
                                                                   reliability
                                                                   assessments and other
                                                                   process type
                                                                   functions.'' (NERC
                                                                   Reference No. 10275).
27..........  MOD-012...........          693  P 1177...........  ``Develop a Work Plan   This directive is
                                                                   and submit a            redundant with the
                                                                   compliance filing       directive in
                                                                   that will facilitate    paragraph 1163, which
                                                                   ongoing collection of   has already been
                                                                   the dynamics system     addressed and is
                                                                   modeling and            reflected in section
                                                                   simulation data.''      A above.
                                                                   (NERC Reference No.
                                                                   10279).
28..........  MOD-012...........          693  P 1181...........  ``Direct the ERO to     This directive is
                                                                   address                 redundant with the
                                                                   confidentiality         directive in
                                                                   issues and modify the   paragraph 1152, which
                                                                   standard as necessary   has already been
                                                                   through its             addressed and is
                                                                   Reliability Standards   reflected in section
                                                                   development             A above.
                                                                   process.'' (NERC
                                                                   Reference No. 10277).
29..........  MOD-013...........          693  P 1200...........  ``Direct the ERO to     This directive is
                                                                   develop a Work Plan     redundant with the
                                                                   that will facilitate    directive in
                                                                   ongoing collection of   paragraph 1163, which
                                                                   the dynamics system     has already been
                                                                   modeling and            addressed and is
                                                                   simulation data         reflected in section
                                                                   specified in MOD-013-   A above.
                                                                   1, and submit a
                                                                   compliance filing
                                                                   containing this Work
                                                                   Plan to the
                                                                   Commission.'' (NERC
                                                                   Reference No. 10283).
30..........  MOD-014...........          693  P 1212...........  ``Direct the ERO to     This directive is
                                                                   use its authority       redundant with the
                                                                   pursuant to Sec.        directive in
                                                                   39.2(d) of our          paragraph 1147, which
                                                                   regulations to          has already been
                                                                   require users, owners   addressed and is
                                                                   and operators to        reflected in section
                                                                   provide the validated   A above.
                                                                   models to regional
                                                                   reliability
                                                                   organizations.''
                                                                   (NERC Reference No.
                                                                   10288).

[[Page 38866]]

 
31..........  MOD-014...........          693  P 1212...........  ``Direct the ERO to     This directive is
                                                                   develop a Work Plan     redundant with the
                                                                   that will facilitate    directive in
                                                                   ongoing validation of   paragraph 1163, which
                                                                   steady-state models     has already been
                                                                   and submit a            addressed and is
                                                                   compliance filing       reflected in section
                                                                   containing the Work     A above.
                                                                   Plan with the
                                                                   Commission.'' (NERC
                                                                   Reference No. 10289).
32..........  MOD-015...........          693  P 1221...........  ``Direct the ERO to     This directive is
                                                                   use its authority       redundant with the
                                                                   pursuant to Sec.        directive in
                                                                   39.2(d) of our          paragraph 1147, which
                                                                   regulations to          has already been
                                                                   require users, owners   addressed and is
                                                                   and operators to        reflected in section
                                                                   provide to the          A above.
                                                                   Regional Entity the
                                                                   validated dynamics
                                                                   system models while
                                                                   MOD-015-0 is being
                                                                   modified.'' (NERC
                                                                   Reference No. 10291).
33..........  MOD-015...........          693  P 1221...........  ``Require the ERO to    This directive is
                                                                   develop a Work Plan     redundant with the
                                                                   that will enable        directive in
                                                                   continual validation    paragraph 1163, which
                                                                   of dynamics system      has already been
                                                                   models and submit a     addressed and is
                                                                   compliance filing       reflected in section
                                                                   with the                A above.
                                                                   Commission.'' (NERC
                                                                   Reference No. 10292).
34..........  MOD-017...........          693  P 1247...........  ``Provide a Work Plan   This directive is
                                                                   and compliance filing   redundant with the
                                                                   regarding the           directive in
                                                                   collection of           paragraph 1163, which
                                                                   information specified   has already been
                                                                   under standards that    addressed and is
                                                                   are deferred, in this   reflected in section
                                                                   instance, data on the   A above.
                                                                   accuracy, error and
                                                                   bias of the
                                                                   forecast.'' (NERC
                                                                   Reference No.10299).
35..........  MOD-018...........          693  P 1264...........  ``Require the ERO to    This directive is
                                                                   provide a Work Plan     redundant with the
                                                                   and compliance filing   directive in
                                                                   regarding collection    paragraph 1163, which
                                                                   of information          has already been
                                                                   specified under         addressed and is
                                                                   standards that are      reflected in section
                                                                   deferred, and believe   A above.
                                                                   there should be no
                                                                   difficulties
                                                                   complying with this
                                                                   Reliability
                                                                   Standard.'' (NERC
                                                                   Reference No. 10303).
36..........  MOD-019...........          693  P 1275...........  ``Direct the ERO to     This directive is
                                                                   use its authority       redundant with the
                                                                   pursuant to Sec.        directive in
                                                                   39.2(d) of our          paragraph 1147, which
                                                                   regulations to          has already been
                                                                   require users, owners   addressed and is
                                                                   and operators to        reflected in section
                                                                   provide to the          A above.
                                                                   Regional Entity
                                                                   information related
                                                                   to forecasts of
                                                                   interruptible demands
                                                                   and direct control
                                                                   load management.''
                                                                   (NERC Reference No.
                                                                   10305).
37..........  MOD-021...........          693  1297.............  ``Direct the ERO to     This directive is
                                                                   provide a Work Plan     redundant with the
                                                                   and compliance filing   directive in
                                                                   regarding collection    paragraph 1163, which
                                                                   of information          has already been
                                                                   specified under         addressed and is
                                                                   related standards       reflected in section
                                                                   that are deferred,      A above.
                                                                   and believe there
                                                                   should be no
                                                                   difficulty complying
                                                                   with this Reliability
                                                                   Standard.'' (NERC
                                                                   Reference No. 10309).
38..........  MOD-021...........          693  P 1297...........  ``Direct the ERO to     This directive is
                                                                   use its authority       redundant with the
                                                                   pursuant to Sec.        directive in
                                                                   39.2(d) of our          paragraph 1147, which
                                                                   regulations to          has already been
                                                                   require users, owners   addressed and is
                                                                   and operators to        reflected in section
                                                                   provide to the          A above.
                                                                   Regional Entity the
                                                                   information required
                                                                   by this Reliability
                                                                   Standard.'' (NERC
                                                                   Reference No. 10313).
39..........  MOD-024...........          693  P 1308...........  ``In order to continue  This directive is
                                                                   verifying and           redundant with the
                                                                   reporting gross and     directive in
                                                                   net real power          paragraph 1147, which
                                                                   generating capability   has already been
                                                                   needed for              addressed and is
                                                                   reliability             reflected in section
                                                                   assessment and future   A above.
                                                                   plans, we direct the
                                                                   ERO to develop a Work
                                                                   Plan and submit a
                                                                   compliance filing.''
                                                                   (NERC Reference No.
                                                                   10317).
40..........  MOD-024...........          693  P 1312...........  ``Direct the ERO to     This directive is
                                                                   use its authority       redundant with the
                                                                   pursuant to Sec.        directive in
                                                                   39.2(d) of our          paragraph 1147, which
                                                                   regulations to          has already been
                                                                   require users, owners   addressed and is
                                                                   and operators to        reflected in section
                                                                   provide this            A above.
                                                                   information.'' (NERC
                                                                   Reference No. 10314).

[[Page 38867]]

 
41..........  MOD-025...........          693  P 1320...........  ``In order to continue  This directive is
                                                                   verifying and           redundant with the
                                                                   reporting gross and     directive in
                                                                   net reactive power      paragraph 1147, which
                                                                   generating capability   has already been
                                                                   needed for              addressed and is
                                                                   reliability             reflected in section
                                                                   assessment and future   A above.
                                                                   plans, we direct the
                                                                   ERO to develop a Work
                                                                   Plan as defined in
                                                                   the Common Issues
                                                                   section.'' (NERC
                                                                   Reference No. 10321).
----------------------------------------------------------------------------------------------------------------

[FR Doc. 2013-15433 Filed 6-27-13; 8:45 am]
BILLING CODE 6717-01-P