[Federal Register Volume 79, Number 189 (Tuesday, September 30, 2014)]
[Proposed Rules]
[Pages 58716-58720]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-23195]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 40

[Docket No. RM14-12-000]


Demand and Energy Data Reliability Standard

AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission proposes to approve Demand and Energy Data 
Reliability Standard MOD-031-1 developed by the North American Electric 
Reliability Corporation, which the Commission has certified as the 
Electric Reliability Organization responsible for developing and 
enforcing mandatory Reliability Standards.

DATES: Comments are due December 1, 2014.

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 in 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: 

Susan Morris (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) 502-6803, [email protected].
Robert T. Stroh (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street NE., Washington, 
DC 20426, Telephone: (202) 502-8473, [email protected].

SUPPLEMENTARY INFORMATION:
    1. Pursuant to section 215(d) of the Federal Power Act (FPA),\1\ 
the Commission proposes to approve Reliability Standard MOD-031-1 
(Demand and Energy Data) developed by the North American Electric 
Reliability Corporation (NERC), which the Commission has certified as 
the Electric Reliability Organization (ERO) responsible for developing 
and enforcing mandatory Reliability Standards. Reliability Standard 
MOD-031-1 provides authority for applicable entities to collect demand, 
energy and related data to support reliability studies and assessments 
and to enumerate the responsibilities and obligations of requestors and 
respondents of that data. In addition, the Commission proposes to 
approve NERC's proposed definitions for the terms Demand Side 
Management and Total Internal Demand. The Commission also proposes to 
approve the associated implementation plan, violation risk factors and 
violation severity levels, and NERC's proposed retirement of the 
currently-effective Reliability Standards MOD-016-1.1, MOD-017-0.1, 
MOD-018-0, MOD-019-0.1, and MOD-021-1 (Existing MOD C Standards).
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    \1\ 16 U.S.C. 824o(d) (2012).
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I. Background

    2. Section 215 of the FPA requires a Commission-certified ERO to 
develop mandatory and enforceable Reliability Standards, which are 
subject to Commission review and approval. Once approved, the 
Reliability Standards are enforced by the ERO, subject to Commission 
oversight, or by the

[[Page 58717]]

Commission independently. In 2006, NERC submitted the initial version 
of Reliability Standards MOD-016-1.1, MOD-017-0.1, MOD-018-0, MOD-019-
0.1, MOD-020-0, and MOD-021-1. The Existing MOD C Standards are 
designed to help ensure that historical and forecasted demand and 
energy data are available for past event validation and future system 
assessment. In particular, the Existing MOD C Standards, along with 
Reliability Standard MOD-020-0, require the collection of actual and 
forecast demand data necessary to analyze the resource needs to serve 
peak demand while maintaining a sufficient margin to address operating 
events.\2\ In Order No. 693, the Commission approved the Existing MOD C 
Standards and Reliability Standard MOD-020-0. In addition, the 
Commission directed NERC to develop certain modifications to the 
standards.
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    \2\ Mandatory Reliability Standards for the Bulk-Power System, 
Order No. 693, FERC Stats. & Regs. ] 31,242, at PP 1223, 1235, order 
on reh'g, Order No. 693-A, 120 FERC ] 61,053 (2007).
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II. NERC Petition

    3. NERC states that proposed Reliability Standard MOD-031-1 
provides planners and operators access to actual and forecast demand 
and energy data, as well as other related information, needed to 
perform resource adequacy studies.\3\ NERC explains that the proposed 
Reliability Standard also supports the continued development of the 
reliability assessments prepared by NERC. NERC states that the proposed 
Reliability Standard improves the Existing MOD C Standards by: (1) 
Streamlining them to clarify data collection requirements; (2) 
including transmission planners as applicable entities that must report 
demand and energy data; (3) requiring applicable entities to report 
weather normalized annual peak hour actual demand data from the 
previous year to allow for meaningful comparison with forecasted 
values; and (4) requiring applicable entities to provide an explanation 
of how their demand side management forecasts compare to actual demand 
side management for the prior calendar year and how their peak demand 
forecasts compare to actual demand for the prior calendar year with due 
regard to any relevant weather-related variations.\4\
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    \3\ NERC Petition at 3. The proposed MOD Reliability Standard is 
not attached to the NOPR. The complete text of the Reliability 
Standard is available on the Commission's eLibrary document 
retrieval system in Docket No. RM14-12 and is posted on the ERO's 
Web site, available at: http://www.nerc.com.
    \4\ NERC Petition at 4.
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    4. Proposed Reliability Standard MOD-031-1 contains four 
requirements. Requirement R1 mandates that each planning coordinator or 
balancing authority that identifies a need for the collection of demand 
and energy data shall develop and issue a data request for such data to 
the relevant entities in its area. The requirement mandates that the 
data request identify: (i) The entities responsible for providing the 
data; (ii) the data to be provided by each entity; and (iii) the 
schedule for providing the data. Requirement R2 obligates the entities 
identified in a Requirement R1 data request to provide the requested 
data to their planning coordinator or balancing authority. Requirement 
R3 requires that the planning coordinator or the balancing authority 
provide the data collected under Requirement R2 to their Regional 
Entity, if requested, to facilitate NERC's development of reliability 
assessments. Requirement R4 requires entities to share their demand and 
energy data with any applicable entity that demonstrates a reliability 
need for such data, subject to applicable confidentiality, regulatory 
or security restrictions.\5\
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    \5\ Id. at 5.
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    5. The term Demand Side Management is currently defined in the NERC 
Glossary as: ``[t]he term for all activities or programs undertaken by 
a Load-Serving Entity or its customers to influence the amount or 
timing of electricity they use.'' NERC proposes to modify the 
definition of ``Demand Side Management'' as ``[a]ll activities or 
programs undertaken by any applicable entity to achieve a reduction in 
Demand.'' NERC states that, consistent with the Commission directive in 
Order No. 693, the proposed definition for Demand Side Management is 
not limited to ``activities or program undertaken by Load Serving 
Entities or its customers'' but is expanded to include ``activities or 
programs undertaken by any applicable entity.'' \6\
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    \6\ Id. at 15-16.
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    6. NERC requests that the Commission approve the proposed 
Reliability Standard, the proposed new and modified NERC Glossary terms 
and the retirement of the Existing MOD C Standards, effective on the 
first day of the first calendar quarter that is twelve months after 
Commission approval. NERC states that the 12-month implementation 
period is designed to provide applicable entities sufficient time to 
transition from compliance with the Existing MOD C Standards to 
proposed Reliability Standard MOD-031-1.\7\
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    \7\ Id. at 31.
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III. Discussion

    7. Pursuant to section 215(d)(2) of the FPA, the Commission 
proposes to approve Reliability Standard MOD-031-1 as just, reasonable, 
not unduly discriminatory or preferential, and in the public interest. 
We also propose to approve the new and modified glossary definitions, 
implementation plan, associated violation risk factors and violation 
severity levels as well as the retirement of the Existing MOD C 
Standards, as requested by NERC.
    8. The Commission believes that the proposed Reliability Standard 
MOD-031-1 continues to provide planners and operators access to 
complete and accurate demand and energy data to allow such entities to 
conduct their own resource adequacy analyses to serve peak demand. The 
proposed Reliability Standard also appears to provide for consistent 
documentation and information sharing practices for demand and energy 
data, and promotes efficient planning practices across the industry and 
supports the identification of needed system reinforcements. The 
Commission believes that proposed Reliability Standard MOD-031-1 
improves the Existing MOD C Standards by providing applicable entities 
the authority to collect demand and energy data, and related 
information, to support reliability assessments and also includes 
transmission planners as applicable entities that must report demand 
and energy data. Furthermore, the proposed Reliability Standard 
requires applicable entities to provide an explanation of current and 
previous demand side management forecasts and how their peak demand 
forecasts compare to actual demand for the prior calendar year.
    9. While we propose to approve Reliability Standard MOD-031-1, we 
seek comment on the collection of data through mechanisms other than 
data requests. Requirements R1 through R3 specifically reference the 
obtaining of data through data requests as follows:

    R1. Each Planning Coordinator or Balancing Authority that 
identifies a need for the collection of Total Internal Demand, Net 
Energy for Load, and Demand Side Management data shall develop and 
issue a data request to the applicable entities in its area. The 
data request shall include: . . .
    R2. Each Applicable Entity identified in a data request shall 
provide the data requested by its Planning Coordinator or Balancing 
Authority in accordance with the data request issued pursuant to 
Requirement R1.

[[Page 58718]]

    R3. The Planning Coordinator or the Balancing Authority shall 
provide the data collected under Requirement R2 to the applicable 
Regional Entity within 75 calendar days of receiving a request for 
such data, unless otherwise agreed upon by the parties.

    In its petition, NERC states that Requirement R1 applies when a 
planning coordinator or balancing authority ``identifies a need'' for 
the collection of demand and energy data.\8\
    According to NERC, this language of Requirement R1:
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    \8\ NERC Petition at 22.

is intended to reflect that certain Planning Coordinators and 
Balancing Authorities may not need to collect Demand and energy data 
through a data request issued pursuant to the proposed Reliability 
Standard. That is because certain Planning Coordinators and 
Balancing Authorities obtain the data through alternative mechanisms 
or develop the data themselves. For instance, many Planning 
Coordinators, such as independent system operators (ISOs) and 
regional transmission organizations (RTOs), collect the necessary 
data and information from entities within their footprint pursuant 
to requirements in their Open Access Transmission Tariffs. 
Additionally, ISOs/RTOs are often in a better position to develop 
the necessary Demand and energy forecasts or aggregate the 
historical data than the entities in their area. Accordingly, the 
requirement is drafted so as to only require a Planning Coordinator 
or Balancing Authority to issue a data request if there is a need to 
do so.\9\
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    \9\ Id. at 22-23.

    10. The Commission understands NERC's explanation to mean that, 
while a planning coordinator or balancing authority may collect demand 
and energy forecast data under a tariff or other arrangement, the 
planning coordinator or balancing authority always retains the option 
to seek the necessary data through a Requirement R1 data request if, 
for example, the data are not forthcoming through other means. The 
Commission seeks comment on this understanding. Further, the Commission 
seeks clarification from NERC and other commenters whether a planning 
coordinator or balancing authority that receives data ``through 
alternative mechanisms'' remains obligated to provide such data (i.e., 
within the scope of Requirement R1) to a Regional Entity upon request, 
as set forth in Requirement R3.

IV. Information Collection Statement

    11. The collection of information contained in this Notice of 
Proposed Rulemaking (NOPR) is subject to review by the Office of 
Management and Budget (OMB) under section 3507(d) of the Paperwork 
Reduction Act of 1995.\10\ OMB's regulations require approval of 
certain information collection requirements imposed by agency 
rules.\11\ Upon approval of a collection(s) of information, OMB will 
assign an OMB control number and an expiration date. Respondents 
subject to the filing requirements of a 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.
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    \10\ 44 U.S.C. 3507(d) (2012).
    \11\ 5 CFR 1320.11.
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    12. We solicit comments on the need for this information, whether 
the information will have practical utility, the accuracy of the burden 
estimates, ways to enhance the quality, utility, and clarity of the 
information to be collected or retained, and any suggested methods for 
minimizing respondents' burden, including the use of automated 
information techniques. Specifically, the Commission asks that any 
revised burden or cost estimates submitted by commenters be supported 
by sufficient detail to understand how the estimates are generated.
    13. Interested persons may obtain information on the reporting 
requirements by contacting the following: Federal Energy Regulatory 
Commission, 888 First Street NE., Washington, DC 20426 [Attention: 
Ellen Brown, Office of the Executive Director, email: 
[email protected], phone: (202) 502-8663, fax: (202) 273-0873].
    14. Comments concerning the information collection 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 FERC-725L and the docket number of this Notice of Proposed 
Rulemaking (Docket No. RM14-12-000) in your submission.
    15. The Commission proposes to approve Reliability Standard MOD-
031-1, which will replace MOD-016-1.1, MOD-017-.01, MOD-018-0, MOD-019-
0.1 and MOD-021-1 (Existing MOD C Standards). As stated above, the 
Existing MOD C Standards were approved by the Commission in Order No. 
693. All information collection estimates associated with the 
collection of demand and energy data and subsequent retention were 
assessed in Order No. 693 and will not be repeated here. The proposed 
Reliability Standard expands the actual data to be submitted in two 
areas: (1) Weather normalized annual peak hour actual demand for the 
prior calendar year if this demand varies due to weather-related 
conditions (e.g., temperature, humidity or wind speed); and (2) 
summaries detailed in Requirement R1, Subparts 1.5.4 and 1.5.5. The 
additional data and summaries will increase reporting and preparation 
time for some applicable entities. Most entities already normalize 
their actual demand data based on weather. However, some entities may 
have a one-time cost of determining the method to ``weather normalize'' 
the actual demand data. Accordingly, the information collection costs 
will consist of an annual cost for all applicable entities and, for a 
small percentage, additional costs will occur during the first year of 
implementation.
    Public Reporting Burden: Reliability Standard MOD-031-1 requires 
each ``Applicable Entity'' to provide the data requested by its 
planning coordinator or balancing authority in accordance with the data 
request issued pursuant to Requirement R1.\12\ Our estimate below 
regarding the number of respondents is based on the NERC Compliance 
Registry as of July 31, 2014. According to the NERC Compliance 
Registry, NERC has registered 478 distribution providers, 469 load-
serving entities, 179 transmission planners and 107 balancing 
authorities. However, under NERC's compliance registration program, 
entities may be registered for multiple functions, so these numbers 
incorporate some double counting. The total number of unique entities 
that may be identified as a data provider (e.g. applicable entity) in 
accordance with proposed Reliability Standard MOD-031-1 will be 
approximately 561 entities registered in the United States as a 
distribution provider, load-serving entity, transmission planner and/or 
balancing authority.\13\ The Commission

[[Page 58719]]

estimates the annual reporting burden and cost as follows: 
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    \12\ Requirement R1, Subpart 1.1 refers to ``Applicable 
Entities'' as the list of transmission planners, balancing 
authorities, load-serving entities and distribution providers that 
are required to provide the data.
    \13\ This estimate assumes all of the unique entities will be 
identified to provide demand and energy data.
    \14\ The estimated hourly costs (salary plus benefits) are based 
on Bureau of Labor Statistics (BLS) information (available at http://bls.gov/oes/current/naics3_221000.htm#17-0000) for an 
electrical engineer ($59.62/hour).
    \15\ This value represents the number of entities that have not 
already determined a method to weather normalize annual peak actual 
demand data. We estimate approximately 5 percent of the applicable 
entities fall into this category.
    \16\ DP = distribution provider, LSE = load-serving entity, TP = 
transmission planner and BA = balancing authority, are functions the 
applicable entities perform in conjunction or individually. We 
estimate the total number of unique entities performing one or more 
of these functions to be 561.

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                                                                  Annual number                  Average burden    Total annual burden       Cost per
                                          Number and type of      of responses    Total number     & cost per      hours & total annual     respondent
                                              respondents        per respondent   of responses      response               cost                \14\
                                       (1).....................             (2)   (1)*(2) = (3)             (4)  (3)*(4) = (5)..........       (5) / (1)
                                      ------------------------------------------------------------------------------------------------------------------
(One-time) Determine method to         28 \15\ (DP, LSE, TP and/              1              28      240 hrs. &  6,720 hours & $400,646.         $14,309
 weather normalize annual peak hour     or BA) \16\.                                                    $14,309
 actual demand.
(On-going) Develop summary in          561 (DP, LSE, TP and/or                1             561   8 hrs. & $477  4,488 hours & $267,575.            $477
 accordance w/Requirement R1,           BA).
 Subparts 1.5.4 and 1.5.5.
                                                                ----------------------------------------------------------------------------------------
    Total............................  ........................  ..............             589  ..............  11,208 hours & $668,221  ..............
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    Title: Mandatory Reliability Standards for the Bulk-Power System: 
MOD Reliability Standards.
    Action: Proposed FERC-725L.
    OMB Control No: 1902-0261
    Respondents: Businesses or other for-profit institutions; not-for-
profit institutions.
    Frequency of Responses: One-time and ongoing.
    Necessity of the Information: Reliability Standard MOD-031-1, if 
adopted, would implement the Congressional mandate of the Energy Policy 
Act of 2005 to develop mandatory and enforceable Reliability Standards 
to better ensure the reliability of the nation's Bulk-Power System. 
Specifically, the purpose of the proposed Reliability Standard is to 
provide authority for applicable entities to collect demand, energy and 
related data to support reliability studies and assessments and to 
enumerate the responsibilities and obligations of requestors and 
respondents of that data.
    Internal Review: The Commission has reviewed the requirements 
pertaining to the proposed Reliability Standard for the Bulk-Power 
System and determined that the proposed requirements are necessary to 
meet the statutory provisions of the Energy Policy Act of 2005. These 
requirements conform to the Commission's plan for efficient information 
collection, communication and management within the energy industry. 
The Commission has assured itself, by means of internal review, that 
there is specific, objective support for the burden estimates 
associated with the information requirements.

V. Regulatory Flexibility Act Certification

    16. The Regulatory Flexibility Act of 1980 (RFA) \17\ generally 
requires a description and analysis of proposed rules that will have 
significant economic impact on a substantial number of small entities. 
As shown in the information collection section, the proposed 
Reliability Standard applies to 561 entities. Comparison of the 
applicable entities with the Commission's small business data indicates 
that approximately 249 are small entities.\18\ Of these, the Commission 
estimates that approximately five percent, or twelve of these small 
entities expect to be affected by the new requirements of the proposed 
Reliability Standard.\19\
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    \17\ 5 U.S.C. 601-612 (2012).
    \18\ The Small Business Administration sets the threshold for 
what constitutes a small business. Public utilities may fall under 
one of several different categories, each with a size threshold 
based on the company's number of employees, including affiliates, 
the parent company, and subsidiaries. The possible categories for 
the applicable entities have a size threshold ranging from 250 
employees to 1,000 employees. For the analysis in this proposed 
rule, we are using the 1,000 employee threshold for each applicable 
entity type.
    \19\ See n.15 supra.
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    17. Proposed Reliability Standard MOD-031-1 is designed to replace, 
consolidate and improve upon the Existing MOD C Standards in addressing 
the collection and aggregation of demand and energy data necessary to 
support reliability assessments performed by the ERO and Bulk-Power 
System planners and operators. The reliability of the Bulk-Power System 
is dependent on having an adequate amount of resources and transmission 
infrastructure available to serve peak demand while also maintaining a 
sufficient margin to address operating events.\20\ The Commission 
estimates that the small entities that will be affected by proposed 
Reliability Standard MOD-031-1 will incur one-time compliance costs 
ranging up to $14,309 (i.e. the cost of determining the method of 
weather normalizing annual peak hour actual demand), plus the annual 
development of summary narratives in accordance with Requirement R1, 
Subparts 1.5.4 and 1.5.5, resulting in costs of $477. These costs 
represent an estimate of the costs a small entity could incur if the 
entity is identified as an applicable entity; the entity's annual peak 
hour actual demand varies due to weather-related conditions; and the 
entity has not yet determined a method for weather normalizing actual 
demand data. The Commission does not consider the estimated costs per 
small entity to have a significant economic impact on a substantial 
number of small entities. Accordingly, the Commission certifies that 
this NOPR will not have a significant economic impact on a substantial 
number of small entities.
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    \20\ NERC Petition at 2.
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VI. Environmental Analysis

    18. 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.\21\ The 
Commission has

[[Page 58720]]

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.\22\ The actions proposed herein fall within this categorical 
exclusion in the Commission's regulations.
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    \21\ 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).
    \22\ 18 CFR 380.4(a)(2)(ii).
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VII. Comment Procedures

    19. 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 December 1, 2014. Comments must refer to 
Docket No. RM14-12-000, and must include the commenter's name, the 
organization they represent, if applicable, and their address in their 
comments.
    20. 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.
    21. 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.
    22. 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

    23. 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.
    24. 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.
    25. 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.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2014-23195 Filed 9-29-14; 8:45 am]
BILLING CODE 6717-01-P