[Federal Register Volume 86, Number 18 (Friday, January 29, 2021)]
[Proposed Rules]
[Pages 7518-7523]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-01614]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 39

[Docket No. RM21-12-000]


Revisions to Regulations on Electric Reliability Organization 
Performance Assessments

AGENCY: Federal Energy Regulatory Commission, Department of Energy.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) proposes 
to amend the Commission's regulations to require the Commission-
certified Electric Reliability Organization to submit assessments of 
its performance every three years instead of the current period of 
every five years. The Commission also proposes to add to the 
Commission's regulations a requirement for the Electric Reliability 
Organization to include in its performance assessment a detailed 
discussion of any areas of the Electric Reliability Organization's 
responsibilities and activities, or a Regional Entity's delegated 
functions, beyond those required by the Commission's regulations, that 
the Commission has identified at least 90 days prior to the expected 
performance assessment submission date. Finally, the Commission 
proposes formalizing the method for the Electric Reliability 
Organization and Regional Entities to receive and respond to 
recommendations by the users, owners, and operators of the Bulk-Power 
System, and other interested parties for improvement of the Electric 
Reliability Organization's operations, activities, oversight and 
procedures.

DATES: Comments are due March 1, 2021.

ADDRESSES: Comments, identified by docket number, may be filed 
electronically at http://www.ferc.gov in acceptable native applications 
and print-to-PDF, but not in scanned or picture format. For those 
unable to file electronically, comments may be filed by mail to: 
Federal Energy Regulatory Commission, Secretary of the Commission, 888 
First Street NE, Washington, DC 20426. Hand-delivered comments must be 
delivered to: Federal Energy Regulatory Commission, 12225 Wilkins 
Avenue, Rockville, Maryland 20852. The Comment Procedures Section of 
this document contains more detailed filing procedures.

FOR FURTHER INFORMATION CONTACT:  Leigh Anne Faugust (Legal 
Information), Office of the General Counsel, Federal Energy Regulatory 
Commission, 888 First Street NE, Washington, DC 20426, Telephone: (202) 
502-6396.

SUPPLEMENTARY INFORMATION: 
    1. Pursuant to section 215 of the Federal Power Act (FPA),\1\ the 
Commission proposes to amend Sec.  39.3(c) of the Commission's 
regulations to require the Commission-certified Electric Reliability 
Organization (ERO) to submit assessments of its performance every three 
years instead of the current period of every five years.\2\ We believe 
that the proposed amendment will provide better continuity in our 
review of the ERO's operations, activities, oversight, procedures, and 
evaluation of the effectiveness of each Regional Entity in the 
performance of delegated functions. We also believe the proposed 
shorter performance assessment cycle will provide an opportunity to 
identify potential improvements with regards to ERO performance in a 
more timely fashion, allow for changes to be made in a more timely 
manner, and improve the efficiency of the overall performance 
assessment process.
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    \1\ 16 U.S.C. 824o.
    \2\ 18 CFR 39.3(c).
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    2. Also, pursuant to section 215 of the FPA, we propose to add 
paragraph (iv) to Sec.  39.3(c)(1) of the Commission's regulations to 
require the Commission-certified ERO to include in its performance 
assessments a detailed discussion of any areas of the ERO's 
responsibilities and activities, or the Regional Entities' delegated 
functions, beyond those required by Sec.  39.3(c)(1)(i), (ii), and 
(iii), that the Commission identifies for inclusion at least 90 days 
prior to the expected performance assessment submission date.
    3. Finally, we propose to amend Sec.  39.3(c)(1)(ii) of the 
Commission's regulations to require the ERO to solicit via a formal 
public comment period recommendations by the users, owners, and 
operators of the Bulk-Power System, and other interested parties for 
improvement of the ERO's operations, activities, oversight and 
procedures.

I. Background

A. Section 215 of the FPA

    4. Section 215 of the FPA requires the Commission to issue 
regulations that, among other things, provide for the certification of 
an entity as the ERO if it meets certain criteria.\3\ Specifically, FPA 
section 215(c) establishes that an ERO candidate must have the ability 
to develop and enforce mandatory Reliability Standards that provide for 
an adequate level of reliability of the Bulk-Power System.\4\ The 
statute also requires that an ERO candidate have established rules 
that: (1) Assure independence, while assuring fair stakeholder 
representation and balanced decision-making; (2) equitably allocate 
reasonable dues, fees, and other charges; (3) provide fair and 
impartial procedures for enforcing Reliability Standards through 
imposition of penalties; (4) provide reasonable notice and opportunity 
for public comment, due process, and balance in developing Reliability 
Standards and otherwise exercising its duties; and (5) provide 
appropriate steps to gain recognition in Canada and Mexico.
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    \3\ 16 U.S.C. 824o; (on July 20, 2006, the Commission certified 
NERC as the ERO for the continental United States under FPA section 
215(c)). North American Electric Reliability Corp., 116 FERC ] 
61,062, order on reh'g and compliance, 117 FERC ] 61,126 (2006), 
order on compliance, 118 FERC ] 61,030, order on compliance, 118 
FERC ] 61,190, order on reh'g, 119 FERC ] 61,046 (2007), aff'd sub 
nom. Alcoa Inc. v. FERC, 564 F.3d 1342 (D.C. Cir. 2009).
    \4\ Id. section 824o(c).
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    5. FPA section 215(e)(4) provides that the ERO may delegate 
authority to a Regional Entity for the purpose of proposing regional 
Reliability Standards and enforcing Reliability Standards. Regional 
Entities must meet the same statutory criteria as those required for 
Commission certification of an ERO, except that more flexibility is 
allowed in the composition of a Regional Entity board of directors. The 
Commission must approve a delegation agreement between the ERO and a 
Regional Entity, and the Commission is authorized to modify such 
delegation.

B. Order No. 672

    6. On February 3, 2006, the Commission issued Order No. 672, which 
amended the Commission's regulations to implement the requirements of 
FPA section 215.\5\ In Order No. 672, the Commission

[[Page 7519]]

interpreted section 215 of the FPA to require the ERO to comply with 
the certification criteria in section 215(c) of the FPA on a continuous 
basis.\6\ Further, the Commission mandated that the ERO submit periodic 
assessments of its performance that ``affirmatively demonstrate to the 
Commission that [the ERO] satisfies the statutory and regulatory 
criteria for an ERO and is not only maintaining but improving the 
quality of its activities and those of the Regional Entities to which 
it has delegated such activities.'' \7\
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    \5\ Rules Concerning Certification of the Electric Reliability 
Organization; and Procedures for the Establishment, Approval, and 
Enforcement of Electric Reliability Standards, Order No. 672, 71 FR 
8662 (Feb. 17, 2006), 114 FERC ] 61,104, at P 186, order on reh'g, 
Order No. 672-A, 114 FERC ] 61,328 (2006).
    \6\ Id. PP 183, 187.
    \7\ Id. P 186.
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    7. In Order No. 672, the Commission also said that the performance 
assessments should employ regular and systematic measurement and 
reporting of the ERO's performance. The specific requirements for the 
performance assessments are set out in the Commission's regulations in 
Sec.  39.3(c) and provide that the ERO file an assessment of its 
performance three years from the date of initial certification, and 
every five years thereafter. Section 39.3(c)(1) of the Commission's 
regulations specify that the ERO should include in its performance 
assessment: (1) An explanation of how it satisfies the requirements of 
Sec.  39.3 (b); \8\ (2) recommendations from stakeholders on 
improvement for the ERO and Regional Entities' performance and the 
ERO's and Regional Entities' response to those recommendations; \9\ and 
(3) an evaluation of the effectiveness of each Regional Entity's 
performance of delegated functions.\10\ Section 39.3(c)(2) of the 
Commission's regulations explain that the Commission will review the 
performance assessments and may require follow-up actions by the ERO to 
comply or improve compliance with the statutory and regulatory 
qualifications for the ERO if the Commission determines that the ERO 
has not satisfied specific criteria.\11\
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    \8\ 18 CFR 39.3(c)(1)(i).
    \9\ 18 CFR 39.3(c)(1)(ii), (iii).
    \10\ 18 CFR 39.3(c)(1)(iii).
    \11\ Id.
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II. Discussion

    8. Pursuant to section 215 of the FPA, we propose to amend Sec.  
39.3(c) of the Commission's regulations to require the Commission-
certified ERO to submit assessments of its performance every three 
years instead of the current period of every five years.\12\ We also 
propose to amend Sec.  39.3(c)(1) to add a new requirement for the ERO 
to include in its performance assessment a detailed discussion of any 
areas of the EROs' responsibilities and activities, or the Regional 
Entity delegated functions, beyond those required by Sec.  
39.3(c)(1)(i), (ii), and (iii) that the Commission identifies at least 
90 days prior to the expected performance assessment submission date. 
For example, a Commission-identified issue may be communicated to the 
ERO through a Commission order or the Commission's delegated authority 
to the Director of the Office of Electric Reliability.\13\
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    \12\ 18 CFR 39.3(c).
    \13\ See e.g., 18 CFR 375.303 (a)(2)(v) (``The Commission 
authorizes the Director or the Director's designee to . . . [d]irect 
the Electric Reliability Organization, Regional Entities, or users, 
owners, and operators of the Bulk-Power System within the United 
States (not including Alaska and Hawaii) to provide such information 
as is necessary to implement Section 215 of the Federal Power Act. . 
. .'').
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    9. While Order No. 672 established a five-year period for 
submitting ERO performance assessments following the initial three-year 
assessment, decreasing the periodicity to every three years would 
improve the ERO's accountability to the public, stakeholders, and the 
Commission. Our proposed reduction in the assessment period aligns with 
the ERO's own acknowledgement that it is ``facing unprecedented, rapid 
change in the electric industry, which raises new challenges to and 
opportunities for the reliability and security of the Bulk Power 
System.'' \14\ We agree, and find that the Bulk-Power System is 
transitioning in myriad ways through innovation and technology at a 
pace unanticipated when the Commission originally established the five-
year performance assessment period and identified topics for the ERO to 
include in those assessments.
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    \14\ North American Electric Reliability Corp., Docket No. RR19-
7-000, at 3 (July 22, 2019) (2019 Performance Assessment).
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    10. The proposed three-year performance assessment cycle will 
enhance the Commission's oversight of the ERO and provide an 
opportunity to address issues arising with regard to ERO performance in 
a more timely fashion. We believe this will allow for changes to be 
made in a more timely manner, and improve the efficiency of the overall 
performance assessment process. A three-year performance assessment 
aligns more closely with certain ongoing NERC activities, such as the 
triennial Reliability Standards and reliability guidelines reviews. 
Moreover, the reduced period between assessments will allow better 
continuity in the Commission's review of the ERO's operations, 
activities, oversight, procedures, and evaluation of the effectiveness 
of each Regional Entity in the performance of delegated functions. For 
example, a three-year period improves the likelihood that the NERC 
staff preparing the performance assessment, the Commission staff 
reviewing the assessment, and Commissioners would be familiar with the 
performance assessment process--thereby providing continuity and 
subject matter expertise. Three years also provides an earlier 
opportunity to address new and emerging areas of concern or 
recommendations for development identified by the Commission and 
stakeholders.
    11. We believe that the proposed three-year performance cycle 
affords a reasonable amount of time between performance assessments. We 
note that this is the same three-year timeframe imposed in Order No. 
672 on the initial performance assessment submitted by the ERO in 2010. 
The timing also aligns with the NERC's Rules of Procedure requirement 
of an independent audit of NERC's Compliance Monitoring and Enforcement 
Program (CMEP) and Organization Registration and Certification 
Program.\15\
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    \15\ See e.g., NERC, Rules of Procedure, sec. 406 (``NERC shall 
provide for an independent audit of its [CMEP] at least once every 
three years, or more frequently as determined by the Board. The 
audit shall be conducted by independent expert auditors as selected 
by the Board'').
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    12. The ERO has existing internal processes used to assess its 
ongoing performance of its statutory responsibilities, and the Regional 
Entities' ongoing performance in their delegated activities.\16\ For 
example, NERC files itemized annual budgets for both its own activities 
and those of the Regional Entities, thereby tracking whether it 
``allocate[s] equitably reasonable dues, fees and charges among end 
users for all activities.'' \17\ The ERO uses a program alignment 
process to identify, prioritize, and resolve inconsistencies among the

[[Page 7520]]

Regional Entities.\18\ The ERO also issues a stakeholder survey every 
other year to measure the effectiveness of NERC and the Regional 
Entities in executing program activities.\19\
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    \16\ For example, pursuant to 18 CFR 39.3 (c)(1)(i), the ERO 
must include in its performance assessment an explanation of how its 
Reliability Standards program meet the requirements of Sec.  
39.3(b). NERC posts on its website the status of various Reliability 
Standards projects, and provides public access to all projects, 
including: Reliability Standards, Standard Authorization Requests, 
Periodic Reviews, and Interpretations. NERC, Reliability Standards 
Under Development, https://www.nerc.com/pa/Stand/Pages/Standards-Under-Development.aspx. NERC has a formal oversight program for 
functions it has delegated to the Regional Entities. The programs 
include performance metrics that NERC uses to evaluate the Regional 
Entity performance from year to year, (i.e., more frequently than 
what would be necessary for a three-year performance assessment). 
2019 Performance Assessment at 10.
    \17\ 18 CFR 39.3(b)(2)(ii).
    \18\ NERC, ERO Enterprise Program Alignment Process, https://www.nerc.com/pa/comp/Pages/EROEnterProAlign.aspx.
    \19\ As required by 18 CFR 39.3(c)(1)(ii), the ERO's performance 
assessment must address ``the effectiveness of each Regional Entity, 
recommendations by the [ERO], users, owners, and operators of the 
Bulk-Power System, and other interested parties for improvement of 
the Regional Entity's performance of delegated functions.''
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    13. Based on the examples described above, we believe the ERO 
should be able to use these existing processes to provide a self-
assessment to the Commission on a three-year basis rather than every 
five years without imposing an undue burden on the ERO. NERC could 
leverage the existing tracking mechanisms discussed above, as well as 
the findings of its required three-year independent audit, its internal 
audit department, ongoing quarterly and annual assessments of its CMEP 
and Organization Registration and Certification Program,\20\ and the 
processes that lead to NERC's annual filings of the business plan and 
budgets (and those of the Regional Entities),\21\ all of which NERC 
already uses to regularly report on its and the Regional Entities' 
activities. For these reasons, we believe a reduction of time from a 
five-year cycle to a three-year cycle will not impose an undue burden 
for NERC, the Regional Entities, registered entities, or other 
interested stakeholders.
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    \20\ See, e.g., NERC, Compliance Monitoring and Enforcement 
Program Quarterly Report, (Nov. 4, 2020), https://www.nerc.com/pa/comp/CE/ReportsDL/Q3%202020%20Quarterly%20CMEP%20Report.pdf.
    \21\ See, e.g., NERC, 2021 Business Plan and Budget Preparation 
Schedule, (2020), https://www.nerc.com/gov/bot/FINANCE/Hidden%20Documents/2021%20BPB%20Preparation%20Schedule.pdf.
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    14. Next, based on the last three performance assessments NERC has 
submitted to the Commission as the ERO, where the Commission has 
directed NERC to submit additional information on further compliance, 
we propose to revise the Commission's regulations governing what an ERO 
must include in its performance assessment. Specifically, we propose to 
require that the Commission-certified ERO include in its performance 
assessments a detailed discussion of any areas of the ERO's activities 
and functions, or the Regional Entities' delegated functions, beyond 
those set forth in Sec.  39.3(c)(1)(i), (ii), and (iii), that the 
Commission identifies for inclusion at least 90 days prior to the 
expected performance assessment submission date.\22\ Identifying 
specific areas of interest in a formal and timely manner prior to 
NERC's submission of the Performance Assessment may likely result in 
efficiencies. For example, identifying areas of interest NERC should 
address in the filing may reduce the need for the Commission to issue 
data requests or require informational filings afterwards. We believe 
the additional information NERC will provide in response to the 
identified areas of interest will enable the Commission to more 
efficiently review the performance of the ERO's activities and 
functions, as well as oversight of the Regional Entities' delegated 
functions. We also believe 90 days prior to the submission of each 
performance assessment provides NERC adequate time to address any 
Commission-identified topics in its performance assessment, but we seek 
comment on whether a different period of time may be more appropriate.
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    \22\ As noted above, a Commission-identified issue may be 
communicated to the ERO through a Commission order or the 
Commission's delegated authority to the Director of the Office of 
Electric Reliability.
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    15. Finally, we propose to add a formal requirement for a public 
comment period to solicit Regional Entities, users, owners, and 
operators of the Bulk-Power System, and other interested parties for 
improvement of the ERO's operations, activities, oversight and 
procedures. The intent of the comment period is to inform the content 
of the ERO's draft performance assessment. We anticipate that the ERO 
would meet the proposed requirement by issuing notice of a public 
comment period on its website specifically requesting that interested 
parties identify areas of improvement. We envision the solicitation of 
comments would be issued separately and prior to the posting of the 
draft performance assessment. The posting should be independent of 
other recurring stakeholder surveys that may have a more limited 
audience. The ERO would then include the submitted comments, and the 
ERO's responses to such comments, with its performance assessment 
filing.
    16. We believe that the proposed amendments to our regulations will 
improve our oversight of the ERO. The proposal will better enable the 
Commission to determine that the ERO is satisfying the statutory and 
regulatory criteria continuously,\23\ and provide the opportunity for 
more timely Commission and stakeholder feedback or direction to the ERO 
should issues arise. Further, consistent with Order No. 672, the 
shorter cycle for the ERO performance assessment will provide more 
timely Commission oversight to assure that the ERO is ``not only 
maintaining but improving the quality of its activities and those of 
the Regional Entities to which it has delegated such activities.'' \24\ 
We seek comments from NERC and other interested entities on this 
proposal, including on the burden of this proposal.
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    \23\ Order No. 672 interprets the FPA to require that the ERO to 
comply with the certification criteria on an ongoing basis, and that 
a violation of a certification criterion constitutes a violation of 
the FPA. Order No. 672, 114 FERC ] 61,104 at P 184.
    \24\ Order No. 672, 114 FERC ] 61,104 at P 186.
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III. Information Collection Statement

    17. This NOPR proposes to amend the Commission's regulations to 
require the Commission-certified ERO to submit assessments of its 
performance every three years instead of the current period of every 
five years. It also proposes to require the Commission-certified ERO to 
include in its performance assessments a detailed discussion of any 
areas of the ERO's responsibilities and activities, or the Regional 
Entities' delegated functions, beyond those required by Sec.  
39.3(c)(1)(i), (ii), and (iii), that the Commission identifies for 
inclusion at least 90 days prior to the expected performance assessment 
submission date. Finally, this NOPR proposes to formalize the ERO's 
solicitation of recommendations via a formal public comment period from 
Regional Entities, users, owners, and operators of the Bulk-Power 
System, and other interested parties for improvement of the ERO's 
operations, activities, oversight and procedures.
    18. The Paperwork Reduction Act (PRA) \25\ requires each federal 
agency to seek and obtain approval by the Office of Management and 
Budget (OMB) before undertaking a collection of information (including 
reporting, record keeping, and public disclosure requirements) directed 
to ten or more persons or contained in a rule of general applicability. 
OMB regulations \26\ require approval of certain information collection 
requirements contemplated by proposed rules (including deletion, 
revision, or implementation of new requirements). Upon approval of a 
collection of information, OMB will assign an OMB control number and an 
expiration date. Respondents subject to the filing requirements of this 
proposed rule will not be penalized for failing to respond to the 
collection of information

[[Page 7521]]

unless the collection of information displays a valid OMB control 
number.
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    \25\ 44 U.S.C. 3501-3521.
    \26\ 5 CFR part 1320.
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    19. The information collection in this NOPR is FERC-725, 
``Certification of Electric Reliability Organization.'' The OMB Control 
Number is 1902-0225. As required by the PRA, the collection of 
information that would be revised in this proposed rule is being 
submitted to OMB for review under 44 U.S.C. 3507(d).
    20. The Commission solicits comments on the Commission's need for 
the proposed revision of the information collection, 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. All burden estimates are discussed in this NOPR 
and in the Paperwork Reduction Act supporting statement.
    21. Interested persons may submit questions about this information 
collection by contacting Ellen Brown, Office of the Executive Director, 
at DataClearance@ferc.gov, or (202) 502-8663. Please send comments 
concerning the collection of information and the associated burden 
estimates to: Office of Information and Regulatory Affairs, Office of 
Management and Budget [Attention: Federal Energy Regulatory Commission 
Desk Officer]. Due to security concerns, comments should be sent 
directly to www.reginfo.gov/public/do/PRAMain. Comments submitted to 
OMB should be sent within 60 days of publication of this notice in the 
Federal Register and refer to FERC-725 and OMB Control No. 1902-0225.
    22. Please submit to the Commission copies of comments concerning 
the collection of information and the associated burden estimates 
(identified by Docket No. RM21-12-000) by any of the following methods:
     eFiling at Commission's Website: http://www.ferc.gov/docs-filing/efiling.asp;
     U.S. Postal Service Mail: Persons unable to file 
electronically may mail similar pleadings to the Federal Energy 
Regulatory Commission, 888 First Street NE, Washington, DC 20426; or
     Effective July 1, 2020, filings not submitted via eFiling 
or the U.S. Postal Service may be delivered to: Federal Energy 
Regulatory Commission, c/o Health and Human Services, 12225 Wilkins 
Avenue, Rockville, Maryland 20852.
    23. The following discussion describes and analyzes the existing 
collection of information associated with 18 CFR 39.3(c) (FERC-725, OMB 
Control Number 1902-0225), as it would be modified by this proposed 
rule.
     Necessity of the Information: The information collected 
from the ERO or Regional Entities under the requirements of FERC-725 is 
used by the Commission to implement the statutory provisions of section 
215 of the FPA and implemented by the Commission in accordance with 18 
CFR part 39.
     Public Reporting Burden: The NOPR would result in program 
changes in the ``Self-Assessment'' information activities in FERC-725 
due to the proposed requirement to submit self-assessments every 3 
years. At present, self-assessments are required every 5 years.
    24. The annualized number of responses for each self-assessment 
would be revised from 0.2 per year to 0.33 per year. As shown below, 
RM21-12-000 would result in a total of 2.31 responses for self-
assessments annually. The Commission has also reduced the number of 
Regional Entities from seven to six.
    25. The Commission calculates the average annual burden and cost 
\27\ in accordance with data from the Bureau of Labor Statistics. For 
hourly cost (for wages and benefits), we estimate that 70 percent of 
the time is spent by Electrical Engineers (code 17-2071, at $66.90/
hr.), 20 percent of the time is spent by Legal (code 23-0000, at 
$143.68/hr.), and 10 percent by Office and Administrative Support (code 
43-0000, at $41.34/hr.). The weighted hourly cost (for wages and 
benefits) is $79.70.
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    \27\ The hourly cost estimates are based on wage data from the 
Bureau of Labor Statistics for May 2019 (BLS, Occupational 
Employment Statistics (May 2019), https://www.bls.gov/oes/current/naics2_22.htm) and benefits data for September 2020 (BLS, Employer 
Costs for Employee Compensation Summary (Dec. 17, 2020), https://www.bls.gov/news.release/ecec.nr0.htm).

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                                                                                                                                      Estimated total
                                                                               Number of     Total number    Average burden hours    annual burden hrs.
         Type of respondent             Type of response       Number of     responses per   of responses      and cost ($) per         and cost ($)
                                                              respondents     respondent    (col. C x col.    response (rounded)    (rounded)  (col. E x
                                                                                                  D)                                      col. F)
A.                                   B....................              C.              D.              E.  F....................  G.
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Electric Reliability Organization..  Self-Assessment......               1            0.33            0.33  4,160 hrs.; $331,552.  1,373 hrs.; $109,412.
Regional Entities..................  Self-Assessment......               6            0.33            1.98  4,160 hrs.; $331,552.  8,237 hrs.; $656,473.
                                                           ---------------------------------------------------------------------------------------------
    Total Burden Hrs. and Cost.....  .....................               7  ..............            2.31  .....................  9,610 hrs.; $765,885.
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IV. Environmental Analysis

    26. 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.\28\ 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.\29\ The actions proposed here 
fall within this categorical exclusion in the Commission's regulations.
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    \28\ Regulations Implementing the National Environmental Policy 
Act of 1969, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. 
& Regs. ] 30,783 (1987) (cross-referenced at 41 FERC ] 61,284).
    \29\ 18 CFR 380.4(a)(2)(ii).
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V. Regulatory Flexibility Act Certification

    27. The Regulatory Flexibility Act of 1980 (RFA) \30\ generally 
requires a description and analysis of proposed rules that will have 
significant economic impact on a substantial number of small entities.
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    \30\ 5 U.S.C 601-612.
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    28. By only proposing to direct NERC, the Commission-certified ERO, 
to

[[Page 7522]]

increase the periodicity of its performance assessment submission and 
address identified topics, this NOPR will not have a significant or 
substantial impact on entities other than NERC. The ERO develops and 
files with the Commission for approval Reliability Standards affecting 
the Bulk-Power System, which represents: (a) A total electricity demand 
of 830 gigawatts (830,000 megawatts) and (b) more than $1 trillion 
worth of assets. Therefore, the Commission certifies that this NOPR 
will not have a significant economic impact on a substantial number of 
small entities.

VI. Comment Procedures

    29. 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 March 1, 2021. Comments must refer to 
Docket No. RM21-12-000, and must include the commenter's name, the 
organization they represent, if applicable, and their address in their 
comments.
    30. The Commission encourages comments to be filed electronically 
via the eFiling link on the Commission's website 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.
    31. Commenters that are not able to file comments electronically 
must submit an original of their comments either by mail through the 
United States Postal Service to: The Secretary of the Commission, 
Federal Energy Regulatory Commission, 888 First Street NE, Washington, 
DC, 20426,\31\ or by any other method of delivery, including hand 
delivery, to the Federal Energy Regulatory Commission, 12225 Wilkins 
Avenue, Rockville, Maryland 20852.\32\
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    \31\ 18 CFR 385.2001(a)(1)(i).
    \32\ 18 CFR 385.2001(a)(1)(ii).
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    32. 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.

VII. Document Availability

    33. 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). At 
this time, the Commission has suspended access to the Commission's 
Public Reference Room due to the President's March 13, 2020 
proclamation declaring a National Emergency concerning the Novel 
Coronavirus Disease (COVID-19).
    34. From the Commission's Home Page on the internet, this 
information is available on eLibrary. The full text of this document is 
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the docket number excluding the last three digits of this document in 
the docket number field.
    35. User assistance is available for eLibrary and the Commission's 
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List of Subjects in 18 CFR Part 39

    Administrative practice and procedure, Electric power, Penalties, 
Reporting and recordkeeping requirements.

    By direction of the Commission. Commissioners Chatterjee and 
Glick are concurring with a joint separate statement attached.

    Issued: January 19, 2021.
Kimberly D. Bose,
Secretary.

    In consideration of the foregoing, the Commission proposes to amend 
part 39, chapter I, title 18, Code of Federal Regulations, as follows:

PART 39--RULES CONCERNING CERTIFICATION OF THE ELECTRIC RELIABILITY 
ORGANIZATION; AND PROCEDURES FOR THE ESTABLISHMENT, APPROVAL, AND 
ENFORCEMENT OF ELECTRIC RELIABILITY STANDARDS

0
1. The authority citation for part 39 continues to read as follows:

    Authority:  16 U.S.C. 824o.

0
2. Amend Sec.  39.3 by revising paragraph (c) introductory text, 
paragraph (c)(ii) and adding paragraph (iv) to read as follows.


Sec.  39.3   Electric Reliability Organization certification.

* * * * *
    (c) The Electric Reliability Organization shall submit an 
assessment of its performance three years from the date of 
certification by the Commission, and every three years thereafter. 
After receipt of the assessment, the Commission will establish a 
proceeding with opportunity for public comment in which it will review 
the performance of the Electric Reliability Organization.
* * * * *
    (ii) Recommendations, as solicited by the Electric Reliability 
Organization via a noticed public comment period, by Regional Entities, 
users, owners, and operators of the Bulk-Power System, and other 
interested parties for improvement of the Electric Reliability 
Organization's operations, activities, oversight and procedures, and 
the Electric Reliability Organization's response to such 
recommendations. . .
* * * * *
    (iv) a detailed discussion of any areas of the Electric Reliability 
Organizations responsibilities and activities, or the Regional Entity 
delegated functions, beyond those required by Sec.  39.3(c)(1)(i), 
(ii), and (iii) of this section that the Commission has identified. The 
Commission will inform the Electric Reliability Organization of any 
additional performance areas to include at least 90 days prior to the 
expected performance assessment submission date.
* * * * *

United States of America Federal Energy Regulatory Commission

Revisions to Regulations on Electric Reliability Organization 
Performance Assessments--Docket No. RM21-12-000

(Issued January 19, 2021)

    CHATTERJEE, Commissioner, and GLICK, Commissioner, concurring:
    We support this notice of proposed rulemaking (NOPR), which 
explores potential improvements to the existing framework for the North 
American Electric Reliability Corporation, the Commission-certified 
Electric Reliability Organization (ERO), to submit assessments of its 
performance. Given the important and increasingly complex role the ERO 
plays in ensuring the reliability of the Bulk Power System, we urge 
interested parties to submit comments on the proposed reforms. To that 
end, while we encourage comments on the potential benefits of these 
proposed reforms, we also encourage interested parties to provide 
comments on the potential burdens the proposed

[[Page 7523]]

reforms may impose on the ERO and its Regional Entities.

    For these reasons, we respectfully concur.

Neil Chatterjee,
Commissioner.

Richard Glick,
Commissioner.

[FR Doc. 2021-01614 Filed 1-28-21; 8:45 am]
BILLING CODE 6717-01-P


