60456 Federal Register / Vol. 70, No. 200 / Tuesday, October 18, 2005 / Proposed Rules 

TABLE 5.—RELATED ALERT COMMERCIAL ENGINE BULLETINS

CEB–A–313 .............................................................................................. CEB–A–73–5029. 

CEB–A–73–2075 ...................................................................................... CEB–A–73–6041. 

CEB–A–1394 ............................................................................................ TP CEB–A–183. 

CEB–A–73–3118 ...................................................................................... TP CEB–A–1336. 

CEB–A–73–4056 ...................................................................................... TP CEB–A–73–2032. 

Issued in Burlington, Massachusetts, on 

October 11, 2005. 

Ann C. Mollica, 

Acting Manager, Engine and Propeller 

Directorate, Aircraft Certification Service. 

[FR Doc. 05–20779 Filed 10–17–05; 8:45 am] 

BILLING CODE 4910–13–P 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

14 CFR Part 1260 

RIN 2700–AC63 

NASA Grant and Cooperative 

Agreement Handbook—Research and 

Development Abstracts 

AGENCY: National Aeronautics and 

Space Administration. 

ACTION: Withdrawal of proposed rule. 

SUMMARY: This action withdraws the 

proposed rule published Friday, 

October 31, 2003 (68 FR 62031–62033). 

NASA will issue internal guidance to 

automate the collection and transfer of 

Research and Development (R&D) 

abstracts to an appropriate central 

repository where they will be available 

for use by government agencies and 

other users. 

DATES: October 18, 2005. 

FOR FURTHER INFORMATION CONTACT: 

Monique Sullivan, NASA Headquarters, 

Contract Management Division, 

Washington, DC, (703) 553–2560, email: Monique.sullivan-1@nasa.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

In the proposed rule published 

Friday, October 31, 2003 (68 FR 62031–

62033), NASA proposed to amend the 

NASA Grant and Cooperative 

Agreement Handbook to include a 

requirement for the electronic 

submission of abstracts of the planned 

research to be conducted under grants 

and cooperative agreements containing 

research and development (R&D) effort 

valued at over $25,000. 

The proposed rule added a new 

provision, 1260.40, NASA Research and 

Development (R&D) Abstracts, and 

related instructions, 1260.18, NASA 

Research and Development (R&D) 

Abstract Collection, to the Grant and 

Cooperative Agreement Handbook. The 

new provision provided for the 

collections of abstracts or summaries for 

NASA-funded-awards with R&D effort 

greater than $25,000. The requirements 

of section 207(g) of the E-Government 

Act of 2002 (Pub. L. 107–347) provide 

the basis for this change. Section 207(g) 

mandates the development and 

maintenance of a repository that 

integrates information on research and 

development funded by the 

FederalGovernment. In furtherance of 

this requirement, NASA established a 

Web-based database system to collect 

summaries or abstracts for all the 

Agency’s procurements containing 

research and development effort valued 

over $25,000. A NASA Web site was 

also established for recipients of NASA 

R&D grants and cooperative agreements 

to enter their abstract data. The 

proposed rule is withdrawn because the 

automation of the requirements of 

section 207(g) of the E-Government Act 

of 2002 (Pub. L. 107–347) voids the 

need for the proposed rule. 

James A. Balinskas, 

Acting Assistant Administrator for 

Procurement. 

[FR Doc. 05–20845 Filed 10–17–05; 8:45 am] 

BILLING CODE 7510–01–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

18 CFR Parts 131 and 292 

[Docket No. RM05–36–000] 

Revised Regulations Governing Small 

Power Production and Cogeneration 

Facilities 

October 11, 2005. 

AGENCY: Federal Energy Regulatory 

Commission, DOE. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Federal Energy 

Regulatory Commission (Commission) is 

proposing to amend its regulations 

governing small power production and 

cogeneration pursuant to section 1253 of 

the Energy Policy Act of 2005 (EPAct 

2005), and section 210 of the Public 

Utility Regulatory Policies Act of 1978 

(PURPA). Specifically, the Commission 

is proposing to (1) issue a rule ensuring 

that new qualifying cogeneration 

facilities are using their thermal output 

in a productive and beneficial manner; 

that the electrical, thermal, chemical 

and mechanical output of the new 

qualifying cogeneration facilities is used 

fundamentally for industrial, 

commercial or institutional purposes; 

and that there is continuing progress in 

the development of efficient electric 

energy generating technology; (2) amend 

Form 556 to reflect the criteria for new 

qualifying cogeneration facilities, (3) 

issue a rule eliminating ownership 

limitations for qualifying cogeneration 

and small power production facilities; 

and (4) amend the exemptions available 

to qualifying facilities from the 

requirements of the Federal Power Act 

and the Public Utility Holding Company 

Act of 1935. 

DATES: Comments are due November 8, 

2005. Reply Comments are due 

November 15, 2005. 

ADDRESSES: Comments may be filed 

electronically via the eFiling link on the 

Commission’s Web site at http:// 

www.ferc.gov. Commenters unable to 

file comments electronically must send 

an original and 14 copies of their 

comments to: Federal Energy Regulatory 

Commission, Office of the Secretary, 

888 First Street, NE., Washington, DC 

20426. Refer to the Comment 

Procedures section of the preamble for 

additional information on how to file 

comments. 

FOR FURTHER INFORMATION CONTACT: 

Daniel Hedberg (Technical Information), 

Office of Markets, Tariffs and Rates, 

Federal Energy Regulatory 

Commission, 888 First Street, NE., 

Washington, DC 20426, (202) 502–

6243. 

Samuel Higginbottom (Legal 

Information), Office of the General 

Counsel, Federal Energy Regulatory 

Commission, 888 First Street, NE., 

Washington, DC 20426, (202) 502–

8561. 

Eric D. Winterbauer (Legal Information), 

Office of the General Counsel, Federal 

Energy Regulatory Commission, 888 

First Street, NE., Washington, DC 

20426, (202) 502–8329. 

SUPPLEMENTARY INFORMATION: 

Federal Register / Vol. 70, No. 200 / Tuesday, October 18, 2005 / Proposed Rules 60457 

1Pub. L. No. 109–58, § 1253, 119 Stat. 594 (2005). 

2Form 556 is set forth in 18 CFR 131.80. 

3 16 U.S.C. 824 et seq. 

4 15 U.S.C. 79a et seq. 

5 16 U.S.C. 824a–3. 

6EPAct 2005 provides that the Commission’s preexisting criteria for qualifying cogeneration 

facilities shall remain in effect for any cogeneration 

facility that: (A) was a qualifying cogeneration 

facility on the date of enactment of section 210(m) 

of PURPA, i.e., on August 8, 2005, or (B) had filed 

with the Commission a notice of self-certification, 

self-recertification, or an application for 

Commission certification under 18 CFR 292.207 

prior to the date on which the Commission issues 

the final rule in this proceeding. 

7 74 FERC ¶ 61, 015 (1996). 

8Brazos Electric Power Cooperative v. Tenaska IV 

Texas Partners, Ltd., 83 FERC ¶ 61,176 at 61,727, 

reh’g denied, 85 FERC ¶ 61,097 (1998), aff’d, Brazos 

Electric Power Cooperative, Inc. v. FERC, 205 F.3d 

235 (5th Cir. 2000), reh’g denied en banc, 214 F.3d 

214 (5th Cir. 2000), cert. denied, 531 U.S. 957 (2000 

(Brazos). Accord Wilbur Power LLC, 103 FERC ¶

61,183, clarified, 104 FERC ¶ 61,055 at 61,201 

(2003); Brooklyn Navy Yard Cogeneration Partners, 

L.P., 74 FERC ¶ 61,015 at 61,046 (1996); 

EcoEle ́ctrica, L.P., 108 FERC ¶ 61,249 at P 25 

(2004). 

In the Brazos case, the cogeneration facility 

produced distilled water that was, for a time, used 

to wash a city’s sewers. The purchaser of the 

electric power from the facility asked the 

Commission to decertify the facility. The 

Commission, using the ‘‘presumptively useful’’

Continued 

Introduction 

1. Pursuant to section 1253 of the 

Energy Policy Act of 2005 (EPAct 

2005),1 the Commission is proposing to 

amend its regulations governing 

qualifying cogeneration and small 

power production facilities. 

Specifically, the Commission is 

proposing to (1) issue a rule ensuring 

that new qualifying cogeneration 

facilities are using their thermal output 

in a productive and beneficial manner; 

that the electrical, thermal, chemical 

and mechanical output of new 

qualifying cogeneration facilities is used 

fundamentally for industrial, 

commercial or institutional purposes; 

and that there is continuing progress in 

the development of efficient electric 

energy generating technology; (2) amend 

Form 556 2 to reflect the criteria for new 

qualifying cogeneration facilities, (3) 

issue a rule eliminating ownership 

limitations for qualifying cogeneration 

and small power production facilities; 

and (4) amend the exemptions available 

to qualifying facilities (QFs) from the 

requirements of the Federal Power Act 

(FPA) 3 and the Public Utility Holding 

Company Act of 1935 (PUHCA).4

Consistent with the requirements of 

section 1253(a) of EPAct 2005, the 

Commission intends to issue a final rule 

by February 4, 2006, which is 180 days 

after enactment of EPAct 2005. 

Background 

2. Section 1253(a) of EPAct 2005 

amends section 210 of PURPA 5 by 

adding subsection (n). New section 

210(n) of PURPA requires the 

Commission to revise 18 CFR 292.205 to 

add criteria for new qualifying 

cogeneration facilities in order to ensure 

(1) that the thermal energy output of any 

new qualifying cogeneration facility is 

used in a productive and beneficial 

manner; (2) the electrical, thermal, and 

chemical output of any new qualifying 

cogeneration facility is used 

fundamentally for industrial, 

commercial, or institutional purposes 

and is not intended fundamentally for 

sale to an electric utility, taking into 

account technological, efficiency, 

economic, and variable thermal energy 

requirements, as well as state laws 

applicable to sales of electric energy 

from a qualifying facility to its host 

facility; and (3) continuing progress is 

made in the development of efficient 

electric energy generating technology. 

We propose regulations implementing 

section 210(n) of PURPA below. 

3. Section 1253(b) of EPAct 2005 

amends the FPA to eliminate ownership 

limitations for qualifying cogeneration 

and small power production facilities. 

PURPA, as originally enacted in 1978, 

limited ownership of qualifying 

cogeneration and small power 

production facilities to individuals not 

primarily engaged in the generation or 

sale of electric power, other than 

electric power solely from cogeneration 

or small power production facilities. 

Section 1253(b) of EPAct 2005 

eliminates that limitation on ownership. 

We propose to revise our regulations to 

implement this provision of EPAct 2005 

below. 

Proposed Revisions to Regulations 

I. Section 292.205 Criteria For 

Qualifying Cogeneration Facilities 

4. Section 1253(a) of EPAct 2005 adds 

section 210(n) to PURPA. Section 210(n) 

of PURPA directs the Commission to 

revise the criteria in 18 CFR 292.205 for 

new qualifying cogeneration facilities.6

Specifically, new section 210(n)(1)(A) of 

PURPA requires that section 292.205 of 

the Commission’s regulations be revised 

to ensure: 

(i) That the thermal energy output of 

a new qualifying cogeneration facility is 

used in a productive and beneficial 

manner; 

(ii) The electrical, thermal, and 

chemical output of the cogeneration 

facility is used fundamentally for 

industrial, commercial, or institutional 

purposes and is not intended 

fundamentally for sale to an electric 

utility, taking into account 

technological, efficiency, economic, and 

variable thermal energy requirements, as 

well as State laws applicable to sales of 

electric energy from a qualifying facility 

to its host facility; and 

(iii) Continuing progress in the 

development of efficient electric energy 

generating technology. 

5. The Commission proposes to revise 

section 292.205 of its regulations by 

adding section 292.205(d), which will 

incorporate the language of sections 

210(n)(1)(A)(i), 210(n)(1)(A)(ii) and 

210(n)(1)(A)(iii) of PURPA as sections 

292.205(d)(i), (ii) and (iii). We propose 

to apply this language on a case-by-case 

basis to determine whether a new 

cogeneration facility can be considered 

a qualifying cogeneration facility. As 

guidance to applicants, we will discuss 

below what we believe the language of 

section 210(n), and the language of the 

regulations proposed here, require a 

new cogeneration facility to show for 

certification. 

6. We solicit comments on whether 

further or different language than that 

proposed here should be incorporated 

in our regulations. 

A. Section 210(n)(1)(A)(i) of PURPA 

7. Section 210(n)(1)(A)(i) of PURPA 

requires that the thermal output of a 

new qualifying cogeneration facility be 

used in a ‘‘productive and beneficial 

manner.’’ The Commission proposes to 

incorporate this standard into new 

section 292.205(d)(i) of its regulations. 

Prior to EPAct 2005’s enactment, the 

Commission, in deciding whether to 

grant certification, traditionally relied 

on an essentially irrebuttable 

‘‘presumptively useful’’ standard in 

determining whether a cogeneration 

facility’s thermal output is useful. 

Explaining that standard, in Brooklyn 

Navy Yard Cogeneration Partners, L.P., 

the Commission stated, ‘‘[i]f the use of 

a cogeneration facility’s thermal output 

constitutes a common industrial or 

commercial application, it is 

presumptively useful and the 

Commission performs no further 

analysis of thermal use.’’ 7 However, 

there has long been concern that an 

irrebuttable ‘‘presumptively useful’’

standard has led to situations where 

cogeneration facilities have qualified 

even where there was no real need for 

the thermal output, and the sole reason 

for the thermal use was to satisfy the 

Commission’s requirement for QF status 

and nothing more. An example of such 

a thermal use was the production of 

distilled water where there is no market 

for the distilled water.8

60458 Federal Register / Vol. 70, No. 200 / Tuesday, October 18, 2005 / Proposed Rules 

standard, found that the use that an unaffiliated 

party makes of the distilled water purchased at 

arms’ length was irrelevant to whether the facility 

qualified under the standard. 

The Commission, earlier this year, however, 

determined that an unaffiliated purchaser of steam 

from a cogeneration facility could not distill water 

with that steam and then sell the distilled water to 

the cogeneration facility to be used in the power 

production process. The Commission labeled the 

proposed transaction a ‘‘sham,’’ in that the distilled 

water was being produced not to serve a legitimate 

industrial, commercial, heating, or cooling purpose 

but rather to help the applicant gain qualifying 

status under PURPA. Calpine King City Cogen, LLC, 

111 FERC ¶ 61,174 (2005), reh’g denied, 112 FERC 

¶ 61,088 (2005). 

8. The Commission, in applying its 

new section 292.205(d)(i), will now 

consider whether a new cogeneration 

facility’s proposed use of its thermal 

output is for a genuine and legitimate 

industrial, commercial, or institutional 

purpose or whether, in reality, the use 

serves merely to allow the applicant to 

achieve qualifying status under PURPA. 

We believe that this approach will allow 

us to determine whether the thermal 

output is being used in a ‘‘productive 

and beneficial manner,’’ as the statute 

requires. 

9. In the future, therefore, we will not 

consider any presumption of usefulness 

to be irrebuttable, as we have in the 

past, but we will consider the 

presumption to be rebuttable and we 

will scrutinize the use a cogeneration 

facility makes of its thermal output to 

assure that the use is not a ‘‘sham’’, and 

that the thermal output is used in a 

‘‘productive and beneficial manner’’. In 

this regard, in determining whether the 

thermal output of a cogeneration facility 

is ‘‘useful’’ for purposes of certification 

as a qualifying facility, we will also 

consider the uses to which the product 

produced by the thermal output is put, 

including such factors as whether the 

product is needed and whether there is 

a market. In the case of distilled water, 

in some geographic areas water distilled 

with cogenerated thermal output can be 

and is used in a productive and 

beneficial manner, while in other 

geographic areas it is not. 

B. Section 210(n)(1)(A)(ii) of PURPA 

10. Section 210(n)(1)(A)(ii) of PURPA 

requires that the Commission must 

ensure that the electrical, thermal, and 

chemical output of a new cogeneration 

facility is used fundamentally for 

industrial, commercial, or institutional 

purposes and is not intended 

fundamentally for sale to an electric 

utility, taking into account 

technological, efficiency, economic, and 

variable thermal energy requirements, as 

well as state laws applicable to sales of 

electric energy from a qualifying facility 

to its host facility. We propose to 

implement section 210(n)(1)(A)(ii) of 

PURPA by adopting the language of the 

statute. In addition, the Commission 

will add the term ‘‘mechanical’’ output 

to the statutory criteria, because this has 

traditionally been a part of the 

Commission’s analysis of cogeneration 

output, and is consistent with the 

statutory language. 

11. There was long concern over what 

were known as ‘‘PURPA machines.’’

PURPA machines were facilities that 

were intended fundamentally to 

produce electric power for sale to an 

electric utility. PURPA machines 

differed from cogeneration facilities 

intended fundamentally to serve the 

thermal, electrical or other needs of the 

cogeneration facility’s host. 

12. Facilities that are intended 

primarily to meet the needs of the 

cogeneration facility’s host are sized for 

that purpose. The useful energy output 

of such a cogeneration facility is used 

fundamentally for industrial, 

commercial, or institutional purposes 

and only the remaining energy is 

available for sale to electric utilities. We 

will require that applications for 

certification under new section 210(n) 

of PURPA, and new section 

292.205(d)(ii) of our regulations, 

provide a detailed explanation of how 

the cogeneration facility meets the 

requirement that the electrical, thermal, 

chemical and mechanical output of the 

cogeneration facility is used 

fundamentally for industrial, 

commercial, or institutional purposes 

and is not intended fundamentally for 

sale to an electric utility, taking into 

account technological, efficiency, 

economic, and variable thermal energy 

requirements, as well as state laws 

applicable to sales of electric energy 

from a qualifying facility to its host 

facility. We seek comment on whether 

we should adopt this general case-bycase approach for determining the 

‘‘fundamental’’ use of a facility, or 

whether we should adopt a specific 

standard, e.g., requiring some specified 

percentage of the total energy output to 

be used for industrial, commercial, or 

institutional purposes, rather than for 

sale to electric utilities. 

13. It has been our experience in 

reviewing applications for certification 

that cogeneration facilities designed to 

minimally meet the pre-existing 

operating standard, i.e., those whose 

thermal output constitutes only 5 

percent of the total energy output of the 

facility, are the facilities most likely to 

be designed fundamentally to sell 

electric output to electric utilities rather 

than being designed fundamentally to 

provide electrical, thermal, and other 

output for industrial, commercial, or 

institutional purposes. On the other 

hand, our experience has been that 

facilities with higher operating 

standards are much more likely to be 

designed fundamentally to provide 

electrical, thermal, and other output for 

industrial, commercial, or institutional 

purposes. To help assure that new 

qualifying cogeneration facilities are 

intended fundamentally to provide 

electrical, thermal, chemical and 

mechanical output for industrial, 

commercial or institutional purposes, 

we will pay particular attention to those 

facilities that only minimally satisfy the 

Commission’s operating standard. 

C. Section 210(n)(1)(A)(iii) of PURPA 

14. New section 210(n)(1)(A)(iii) of 

PURPA requires the Commission to 

issue rules to ensure ‘‘the continuing 

progress in the development of efficient 

electrical energy generating 

technology.’’ The Commission’s 

proposed implementation of this 

requirement will be by a verbatim 

recitation of the statute. In an 

application for certification of new 

cogeneration facilities, the Commission 

will require a description of how the 

technology used by an applicant for 

certification satisfies this requirement. 

In general, we believe new section 

210(n)(1)(A)(iii) of PURPA requires that 

all new cogeneration applicants 

demonstrate their employment of 

efficient, modern technologies, but all 

such applicants that request the 

Commission to exercise any of the 

limited discretion given under section 

210(n)(1)(A)(ii) to ‘‘[take] into account 

technological, efficiency, economic and 

variable thermal energy requirements 

***’’ should be particularly prepared 

to make such a demonstration. 

15. In addition, to ensure continuing 

progress in the development of efficient 

electric energy technology, the 

Commission proposes to apply an 

efficiency standard to new coal-burning 

cogeneration facilities similar to that 

applied to natural gas and oil-burning 

cogeneration facilities. Currently, 

section 292.205(a)(2) of the 

Commission’s regulations establishes an 

efficiency standard for topping-cycle 

cogeneration facilities for which any of 

the energy input is natural gas or oil. 

Under this efficiency standard, the 

useful power output of the facility plus 

one-half the useful thermal energy 

output during the applicable period 

must be no less than 42.5 percent of the 

total energy input of natural gas or oil. 

If the useful thermal energy output is 

less than 15 percent of the total energy 

output of the facility, the useful power 

output of the facility plus one-half of the 

useful energy output must be no less 

Federal Register / Vol. 70, No. 200 / Tuesday, October 18, 2005 / Proposed Rules 60459 

9Small Power Production and Cogeneration 

Facilities; Regulations Implementing Section 210 of 

the Public Utility Regulatory Policies Act of 1978, 

Order No. 69, 45 FR 12,214 (Feb. 25, 1980), FERC 

Stats. & Regs. ¶ 30,128 (1980). 

10 104 FERC ¶ 61,227, reh’g denied, 105 FERC 

¶ 61,152 (2003). 

11 104 FERC ¶ 61,832, reh’g denied, 105 FERC 

¶ 61,152 (2003). 

12 103 FERC ¶ 61,186 (2003). 

13Connecticut Valley Electric Company, Inc. v. 

Wheelabrator Claremont Company, Inc., 82 FERC 

¶ 61,116 (1998), reh’g denied, 83 FERC ¶ 61,136 

(1998). 

than 45 percent, rather than 42.5 

percent. The Commission’s current 

efficiency standard ensures that the 

facility operates at or above a certain 

level of performance when it uses 

natural gas or oil. 

16. Given advances in electric 

generating technology, it now appears 

appropriate to implement an efficiency 

standard for coal-fired cogeneration 

facilities. For example, there is the 

potential for efficiency improvements at 

pulverized coal-fired plants using 

existing technology through operational 

changes and equipment upgrades. There 

is also the potential for improved 

thermal efficiencies through the use of 

pulverized coal-fired plants built with 

newer technologies and by the 

utilization of supercritical steam. Under 

Department of Energy research and 

development programs, two new 

technologies—Pressurized Fluid Bed 

Combustion and Integrated Gasification 

Combined Cycle—have created 

combined cycle operations within coalfired facilities. These two types of 

facilities have improved thermal 

efficiencies as compared to 

conventional pulverized coal-fired 

facilities and are currently in 

commercial use. The Commission 

would like to know what methods of 

quantifying efficiency the Commission 

should consider. The Commission 

requests comments on what the 

minimum efficiency for such new coalfired cogeneration facilities should be. 

17. The Commission invites 

comments on this as well as on other 

ways by which it can ‘‘ensure 

continuing progress in the development 

of efficient electrical energy generating 

technology.’’

D. Section 292.207 Procedures for 

Obtaining Qualifying Status 

18. In light of the criteria for new 

cogeneration facilities, we invite 

comments on whether the selfcertification procedures contained in 

section 292.207 should be available to 

new cogeneration facilities. 

II. Section 292.601 Exemption of 

Qualifying Facilities From the Federal 

Power Act. 

19. Section 210(e)(1) of PURPA states 

that the Commission shall prescribe 

rules under which qualifying facilities 

are exempt, in whole or in part, from the 

FPA, from PUHCA, from state laws and 

regulations respecting the rates or 

respecting the financial or organization 

regulation of electric utilities, or from 

any combination of the foregoing, if the 

Commission determines such 

exemption is necessary to encourage 

cogeneration and small power 

production. Section 210(e)(2) of PURPA 

provides that the Commission is not 

authorized to exempt small power 

production facilities of 30 to 80 

megawatt capacity from these laws, 

except for geothermal small power 

production facilities. Such facilities 

between 30 and 80 megawatts may be 

exempted from PUHCA and from state 

laws and regulations, but may not be 

exempted from the FPA. 

20. In Order No. 69,9 the Commission 

first implemented section 210(e) of 

PURPA. The Commission at that time 

stated that a broad exemption was then 

appropriate to remove the disincentive 

of utility-type regulation from QFs, 

including sections 203, 205, 206, 208, 

301 and 304 of the FPA. In section 

292.601 of its regulations, the 

Commission exempted QFs (other than 

non-geothermal small power production 

facilities between 30 and 80 megawatts) 

from sections 203, 205, 206, 208, 301 

and 304 of the FPA. 

21. The Commission has traditionally 

interpreted this exemption broadly. For 

instance, in Pine Bluff Energy, LLC10

and Carville Energy LLC,11 the 

Commission dismissed filings proposing 

rates for reactive power filed by two QFs 

on the ground that, as QFs, the facilities 

were exempt from section 205 of the 

FPA, and their rates were thus not 

subject to Commission review under 

section 205 of the FPA. Similarly, in SP 

Newsprint Co.,12 the Commission 

dismissed an application for marketbased rate authority filed by a QF, 

saying that because a QF is exempt from 

section 205 of the FPA, it does not need 

Commission authority to make marketbased rate sales. 

22. In the context of this rulemaking, 

the Commission finds that it is 

appropriate to reexamine the broad 

exemptions from the FPA granted to 

QFs. First, roughly 25 years after the 

enactment of PURPA, we do not believe 

that all of the exemptions from the FPA 

are still necessary to encourage the 

development of cogeneration facilities 

and small power production facilities. 

Second, we are concerned that the broad 

nature of the exemptions currently set 

forth in section 292.601 remove a large 

number of generation sales from any 

regulatory oversight. 

23. For purposes of evaluating 

exemptions, it is important to 

distinguish between different types of 

sales made by QFs. Those sales made 

pursuant to the must purchase 

obligation contained in section 210 of 

PURPA have typically been referred to 

as ‘‘PURPA sales’’. Those sales are 

subject to state regulatory commission 

oversight and the avoided cost rates for 

those sales are set by the states pursuant 

to our regulations. However, a large 

number of QFs make market-based 

sales, which are often referred to as 

‘‘non-PURPA sales’’. Many QFs are large 

units and their non-PURPA sales could 

potentially have a significant market 

effect. Nevertheless, under our current 

regulations, these QFs are not required 

to file for market-based rate authority 

under section 205 of the FPA. Moreover, 

if there were allegations of any type of 

market misconduct by these QFs, the 

Commission might not be able to 

effectively investigate and remedy the 

misconduct because our current 

regulations exempt these QFs from 

section 206 of the FPA. 

24. Our concern is heightened by the 

fact that, in section 1253(b) of EPAct 

2005, Congress has eliminated the 

ownership requirements for QF status, 

and, consistent with the new provision, 

we are proposing to eliminate the 

ownership requirements currently 

contained in sections 292.203(a)(3), 

292.203(b)(2) and 292.206 of our 

regulations. Therefore, traditional 

utilities will now be able to own up to 

100 percent of a QF. We believe that 

QFs, which now may be largely or 

wholly-owned by traditional utilities, 

generally should not be exempt from 

regulation under the FPA. 

25. The elimination of the ownership 

requirements for QF status also will 

permit QFs to sell electric energy ‘‘other 

than electric power solely from 

cogeneration facilities or small power 

production facilities.’’ The Commission 

previously has interpreted this language 

to prohibit a QF from selling more than 

its net output.13 The elimination of the 

ownership requirements will now 

permit a qualifying facility to sell 

electric energy other than electric 

energy produced by itself or another 

qualifying facility and still retain QF 

status. However, such sales should not 

be entitled to exemptions from the FPA; 

nor should qualifying facilities that 

60460 Federal Register / Vol. 70, No. 200 / Tuesday, October 18, 2005 / Proposed Rules 

14Ownership information provided in Form 556, 

discussed further below, would help the 

Commission to better monitor those circumstances 

where such sales may be more likely, i.e., where the 

qualifying facility is affiliated with other market 

participants and where there may be an incentive 

for electric energy to be purchased by a QF and then 

resold to an affiliated traditional utility as QFgenerated electric energy. 

15See, e.g., AEP Power Marketing, Inc., 107 FERC 

¶ 61,018, order on reh’g, 108 FERC ¶ 61,026 (2004). 

make such sales be entitled to 

exemptions from the FPA.14

26. We propose to eliminate, among 

other things, the exemptions from 

sections 205 and 206 of the FPA that the 

Commission previously granted in 

section 292.601 of our regulations, 

except the exemption from sections 205 

and 206 of the FPA for sales that are 

governed by state regulatory authorities 

pursuant to section 210(f) of PURPA. 

These latter sales are at rates pursuant 

to contracts or obligations approved by 

state regulatory authorities. Since such 

sales are pursuant to the regulatory 

oversight set forth in section 210(f) of 

PURPA, an exemption from sections 205 

and 206 of the FPA remains appropriate 

for those sales. 

27. A QF which sells electric energy 

pursuant to a state regulatory authority 

avoided-cost ratemaking regime would 

remain exempt from section 205, 

however, and therefore would not make 

a section 205 filing with the 

Commission (unless it also makes sales 

of electric energy that are not pursuant 

to a state regulatory authority avoidedcost ratemaking regime). But a QF that, 

on the other hand, plans to make 

market-based rate sales, i.e., sales that 

are not pursuant to the state regulatory 

authority’s avoided-cost ratemaking 

regime, must have a Commissionaccepted market-based rate tariff for 

such sales.15

28. We recognize that the removal of 

exemptions might create a hardship for 

smaller QFs, particularly those owned 

by individuals or small businesses. We 

would consider suggestions that at least 

some of the exemptions previously 

granted in section 292.601 should 

remain in effect for smaller QFs, such as 

those under 5 MW. Another key element 

to consider in the granting of 

exemptions, as suggested above, is 

whether the QF is independent of 

traditional utilities, transmission 

providers and other power producers; 

we invite comments on whether 

exemptions previously granted under 

section 292.601 (and continued here) 

should remain in effect only for those 

QFs that are independent of traditional 

utilities, transmission providers and 

other power producers. 

29. In addition, EPAct 2005, in 

sections 1281 (Electric Market 

Transparency), 1282 (False Statements) 

and 1283 (Market Manipulation), has 

added new provisions, sections 220, 221 

and 222, to the FPA. We propose that 

QFs will not be exempt from those 

provisions of the FPA. 

30. We invite comments on whether 

the Commission should eliminate or 

retain exemptions from other sections of 

the FPA that are granted by our current 

regulations. Currently, most QFs (except 

for non-geothermal small power 

production facilities that exceed 30 

megawatts) are exempt from all 

provisions of the FPA except sections 1–

18, and 21–30; sections 202(c), 210, 211, 

212, 213 and 214; section 305(c); and 

any necessary enforcement provisions 

with regard to the listed provisions. 

31. We also propose to eliminate the 

exemptions from PUHCA contained in 

section 292.602 of our regulations. 

PUHCA has been repealed and the new 

Public Utility Holding Company Act of 

2005 (PUHCA 2005) provides specific 

authority under which the Commission 

is to grant exemptions from PUHCA 

2005 for entities that are holding 

companies by virtue of owning QFs. We 

will retain the exemptions from certain 

state laws and regulations contained in 

section 292.602 of our regulations; 

section 292.602(c)(3), which provides 

that the Commission will consider the 

requests of state regulatory authorities 

or nonregulated utilities to limit the 

exemptions from state law or regulation, 

will be retained as section 292.602(b)(3). 

We invite comments on these proposals. 

III. Section 292.203 General 

Requirements for Qualification and 

Section 292.206 Ownership Criteria 

32. Section 1253(b) of EPAct 2005 

amends sections 3(17)(C) and 3(17)(B) of 

the Federal Power Act by eliminating 

the ownership limitations for QFs 

currently contained in those sections. 

Section 292.206 of the Commission’s 

regulations was designed to implement 

the statutory requirement that a 

qualifying cogeneration or small power 

production facility must be owned by a 

person not primarily engaged in the 

generation or sale of electric power 

(other than electric power solely from 

cogeneration facilities or small power 

production facilities). The Commission 

proposes to implement section 1253(b) 

of EPAct 2005 by eliminating section 

292.206 from its regulations, and thus 

eliminating the ownership limitations 

for all QFs—both existing and new. 

33. Section 292.203 lists the general 

requirements for qualification status. 

Section 292.203(a)(3) requires that a 

small power production facility must 

‘‘[m]eet[] the ownership criteria 

specified in § 292.206.’’ Section 

292.203(b)(2) requires that a 

cogeneration facility must ‘‘[m]eet[] the 

ownership criteria specified in 

§ 292.206.’’ In light of the elimination of 

the ownership limitations for all QFs 

and the Commission’s proposal to delete 

section 292.206, the Commission 

proposes to delete from section 292.203 

these references to the ownership 

limitation from the requirements for 

qualifying small power production 

facilities and qualifying cogeneration 

facilities. Therefore, the Commission 

proposes to delete sections 292.203(a)(3) 

and 292.203(b)(2) from its regulations. 

IV. Section 131.80, Form 556 

34. The new criteria proposed herein 

for new qualifying cogeneration 

facilities require changes in Form 556, 

found at 18 CFR 131.80, which is used 

by those seeking qualifying facility 

status, whether by Commission 

application or by self-certification. We 

propose to amend 18 CFR 131.80 to 

incorporate the new criteria for new 

cogeneration facilities. 

35. In addition, section 292.206 is 

being removed to implement section 

1253(b) of EPAct 2005, which 

eliminates the ownership limitations for 

QFs currently contained in sections 

3(17)(A) and 3(17)(B) of the FPA. The 

removal of section 292.206 requires 

amendment of Form 556 to reflect the 

new criteria for QF status. We thus 

propose to eliminate references in Form 

556 to the necessity of showing that a 

QF is not owned more than 50 percent 

by certain entities and we propose to 

eliminate the requirements designed to 

help the Commission enforce that 50 

percent ownership limitation. 

Nevertheless, the Commission proposes 

to retain a requirement that a QF 

provide in Form 556 ownership 

information including the percentage of 

ownership held by any electric utility or 

electric utility holding company, or by 

any person owned by either. While 

ownership limitations are no longer part 

of the criteria for QF status, the 

Commission nevertheless believes that 

an applicant for QF status should 

inform the Commission of the identity 

of its owners, and their percentage 

interests. The Commission believes that 

this information will help the 

Commission determine whether in the 

future, as it gains experience subsequent 

to the enactment of EPAct 2005, the 

exemptions from the FPA and state laws 

should continue to be available to all 

QFs, especially those affiliated with 

traditional utilities, transmission 

providers and other power producers. It 

will also allow the Commission to better 

monitor for undue discrimination or 

preference both in the provision of 

Federal Register / Vol. 70, No. 200 / Tuesday, October 18, 2005 / Proposed Rules 60461 

16 5 CFR 1320.13. 

17 44 U.S.C. 3507(d). 

18Regulations Implementing the National 

Environmental Policy Act, Order No. 486, 52 FR 

47897 (Dec. 17, 1987), FERC Stats. & Regs. ¶ 30,783 

(1987). 

19 18 CFR 380.4(a)(2)(ii). 

transmission service and sales for resale 

in interstate commerce. We ask 

commenters to provide comments 

addressing this matter. 

Information Collection Statement 

36. The Office of Management and 

Budget (OMB) regulations require 

approval of certain information 

collection requirements imposed by 

agency rules.16 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 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 proposes amending its 

regulations to implement section 1253 

of the EPAct 2005; specifically, its 

regulations governing qualifying small 

power production and cogeneration 

facilities and the exemptions available 

to qualifying facilities from the 

requirements of the FPA and PUHCA. 

The Commission’s regulations, in 18 

CFR Parts 131 and 292, specify the 

certification procedures that must be 

followed by small power production 

and cogeneration facilities seeking QF 

status; specify the criteria that must be 

met; specify the information which 

must be submitted to the Commission in 

order to obtain QF status; specify the 

benefits which are available to QFs; and 

specify the transaction obligations of 

electric utilities with respect to QFs. 

The information provided the 

Commission under Parts 131 and 292 is 

identified as Form 556. 

37. The Commission is submitting 

these reporting requirements to OMB for 

its review and approval under section 

3507(d) of the Paperwork Reduction 

Act.17 Comments are solicited on the 

Commission’s need for this information, 

whether the information will have 

practical utility, the accuracy of 

provided burden estimates, ways to 

enhance the quality, utility, and clarity 

of the information to be collected, and 

any suggested methods for minimizing 

the respondent’s burden, including the 

use of automated information 

techniques. 

Burden Estimate: The Public 

Reporting burden for the requirements 

proposed here are as follows: 

Data Collection Number of 

respondents 

Number of 

responses 

Hours per 

response 

Total annual 

hours 

FERC Form 556: 

FERC Certification .................................................................................... 27 1 4 108 

Public Utilities ........................................................................................... 270 1 38 10,260 

Totals ................................................................................................. 297 1 38 10,388 

Total Annual hours for Collection: 

(Reporting + recordkeeping, (if 

appropriate)) = 10,388 hours. 

Information Collection Costs: The 

Commission seeks comments on the 

costs to comply with these 

requirements. It has projected the costs 

to be: $3,488,800 (2080 total work hours 

in a year times $350) + $478,880 

(Commission certification) = $3,967,680. 

Cost per respondent for self-certification 

is $12,921. (The hourly rate includes 

attorney fees, engineering consultation 

fees and administrative support.) 

Title: FERC Form 556 ‘‘Cogeneration 

and Small Power Production’’. 

Action: Proposed Collections. 

OMB Control No: 1902–0075. 

Respondents: Business or other for 

profit. 

Frequency of Responses: On occasion. 

Necessity of the Information: This 

proposed rule, if adopted, would 

implement the Congressional mandate 

of the EPAct 2005 to implement the 

following: establishment of criteria for 

new qualifying cogeneration facilities; 

elimination of ownership limitations; 

and amending the exemptions available 

to QFs from the FPA and from PUHCA. 

By amending its regulations, the 

Commission is satisfying the statutory 

mandate and satisfying its continuing 

obligation to review its policies 

encouraging cogeneration and small 

power production, energy conservation, 

efficient use of facilities and resources 

by electric utilities and equitable rates 

for energy customers. The information 

collected under 18 CFR Parts 131 and 

292 is used by the Commission to 

determine whether an application for 

certification (Commission certification 

or self-certification) meets the criteria 

for a qualifying small power production 

facility or a qualifying cogeneration 

facility under its regulations and eligible 

to receive the benefits available to it 

under PURPA. 

Internal review: The Commission has 

reviewed the requirements pertaining to 

qualifying small power production and 

cogeneration facilities and determined 

the proposed requirements are 

necessary to meet the statutory 

provisions of the EP Act 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. 

Interested persons may obtain 

information on the reporting 

requirements by contacting: Federal 

Energy Regulatory Commission, 888 

First Street, NE., Washington, DC 20426 

[Attention: Michael Miller, Office of the 

Executive Director, Phone: (202) 502–

8415, fax: (202) 273–0873, e-mail: 

michael.miller@ferc.gov. Comments on 

the requirements of the proposed rule 

may also be sent to the Office of 

Information and Regulatory Affairs, 

Office of Management and Budget, 

Washington, DC 20503 [Attention: Desk 

Officer for the Federal Energy 

Regulatory Commission]. 

Environmental Analysis 

38. 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.18 The Commission has 

categorically excluded certain actions 

from this requirement as not having a 

significant effect on the human 

environment. As explained above, this 

proposed rule is clarifying in nature. It 

interprets several amendments made to 

PURPA and to the FPA by EPAct 2005, 

and clarifies the applicability of these 

amendments to QFs; it does not 

substantially change the effect of the 

legislation. Accordingly, no 

environmental consideration is 

necessary.19

60462 Federal Register / Vol. 70, No. 200 / Tuesday, October 18, 2005 / Proposed Rules 

20 5 U.S.C. 601–12. 

21The RFA definition of ‘‘small entity’’ refers to 

the definition provided in the Small Business Act, 

which defines a ‘‘small business concern’’ as a 

business that is independently owned and operated 

and that is not dominant in its field of operation. 

15 U.S.C. 632. 

Regulatory Flexibility Act Analysis 

39. The Regulatory Flexibility Act of 

1980 (RFA) 20 generally requires a 

description and analysis of rules that 

will have a significant economic impact 

on a substantial number of small 

entities. Many, if not most, QFs to 

which this rule would apply do not fall 

within the definition of small entities.21

In addition, to the extent the proposed 

regulations remove now-unnecessary 

regulations such as ownership 

limitations for qualifying cogeneration 

and small power production facilities, 

the proposed regulations will be 

beneficial to QFs. Therefore, the 

Commission certifies that this rule will 

not have a significant economic impact 

on a substantial number of small 

entities. Accordingly, no regulatory 

flexibility analysis is required. 

Comment Procedures 

40. 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 November 8, 2005. 

Reply comments are due November 15, 

2005. Comments and reply comments 

must refer to Docket No. RM05–36–000, 

and must include the commenter’s 

name, the organization they represent, if 

applicable, and their address in their 

comments. Comments and reply 

comments may be filed either in 

electronic or paper format. 

41. Comments and reply comments 

may 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 and 

commenters may attach additional files 

with supporting information in certain 

other file formats. Commenters filing 

electronically do not need to make a 

paper filing. Commenters that are not 

able to file comments and reply 

comments electronically must send an 

original and 14 copies of their 

comments to: Federal Energy Regulatory 

Commission, Office of the Secretary, 

888 First Street, NE., Washington, DC 

20426. 

42. All comments and reply 

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 and 

reply comments on other commenters. 

Document Availability 

43. 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 p.m. 

Eastern time) at 888 First Street, NE., 

Room 2A, Washington, DC 20426. 

44. From the Commission’s Home 

Page on the Internet, this information is 

available in the the Commission’s 

document management system, 

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. 

45. User assistance is available for 

eLibrary and the Commission’s Web site 

during normal business hours. For 

assistance, please contact FERC Online 

Support at 1–866–208–3676 (toll free) or 

(202) 502–8222 (e-mail at 

FERCOnlineSupport@FERC.gov), or the 

Public Reference Room at (202) 502–

8371, TTY (202) 502–8659 (e-mail at 

public.referenceroom@ferc.gov). 

List of Subjects in 18 CFR Parts 131 and 

292 

Electric power, Electric power plants, 

Electric utilities, Natural gas, Reporting 

and recordkeeping requirements. 

By direction of the Commission. 

Magalie R. Salas, 

Secretary. 

In consideration of the foregoing, the 

Commission proposes to amend Parts 

131 and 292, Chapter I, Title 18, Code 

of Federal Regulations, as follows. 

Subchapter K—Regulations Under the 

Public Utility Regulatory Policies Act of 

1978 

* * * * * 

PART 292—REGULATIONS UNDER 

SECTIONS 201 AND 210 OF THE 

PUBLIC UTILITY REGULATORY 

POLICIES ACT OF 1978 WITH REGARD 

TO SMALL POWER PRODUCTION AND 

COGENERATION 

1. The authority citation for part 292 

continues to read as follows: 

Authority: 16 U.S.C. 791a–825r, 2601–

2645; 31 U.S.C. 9701; 42 U.S.C. 7101–7352. 

2. In § 292.205, paragraph (d) is added 

to read as follows: 

§ 292.205 Criteria for qualifying 

cogeneration facilities. 

* * * * * 

(d) Criteria for new cogeneration 

facilities—Notwithstanding paragraphs 

(a) and (b) of this section, any 

cogeneration facility that was either not 

certified as a qualifying cogeneration 

facility on or before August 8, 2005, or 

that had not filed a notice of selfcertification, self-recertification or an 

application for Commission certification 

as a qualifying cogeneration facility 

under § 292.207 of this chapter prior to 

[the date the Commission issues a final 

rule], must also show: 

(1) The thermal energy output of the 

cogeneration facility is used in a 

productive and beneficial manner; 

(2) The electrical, thermal, chemical 

and mechanical output of the 

cogeneration facility is used 

fundamentally for industrial, 

commercial, or institutional purposes 

and is not intended fundamentally for 

sale to an electric utility, taking into 

account technological, efficiency, 

economic, and variable thermal energy 

requirements, as well as state laws 

applicable to sales of electric energy 

from a qualifying facility to its host 

facility; and 

(3) Continuing progress in the 

development of efficient electric energy 

generating technology. 

3. In § 292.601, paragraph (c) is 

revised to read as follows: 

§ 292.601 Exemption of qualifying facilities 

from the Federal Power Act. 

* * * * * 

(c) General Rule. Any qualifying 

facility described in paragraph (a) of this 

section shall be exempt from all sections 

of the Federal Power Act, except: 

(1) Sections 205 and 206; however, 

sales of energy or capacity made 

pursuant to a state regulatory authority 

avoided-cost regime shall be exempt 

from scrutiny under sections 205 and 

206; 

(2) Section 1–18, and 21–30 and 

sections 202(c), 210, 211, 212, 213, 214, 

220, 221 and 222; 

(3) Sections 305(c); and 

(4) Any necessary enforcement 

provision of Part III of the Federal 

Power Act (including but not limited to 

sections 306, 307, 308, 309, 314, 315, 

316 and 316A) with regard to the 

sections listed in paragraphs (c)(1), (2) 

(3) and (4) of this section. 

4. In § 292.602, paragraph (b) is 

removed and paragraph (c) is 

Federal Register / Vol. 70, No. 200 / Tuesday, October 18, 2005 / Proposed Rules 60463 

redesignated as newly revised paragraph 

(b) to read as follows: 

§ 292.602 Exemption of qualifying facilities 

from certain State law and regulation. 

* * * * * 

(b) Exemption from certain State laws 

and regulations. 

(1) Any qualifying facility shall be 

exempted (except as provided in 

paragraph (b)(2)) of this section from 

state laws or regulations respecting: 

(i) The rates of electric utilities; and 

(ii) The financial and organizational 

regulation of electric utilities. 

(2) A qualifying facility may not be 

exempted from state laws and 

regulations implementing subpart C. 

(3) Upon request of a state regulatory 

authority or nonregulated electric 

utility, the Commission may consider a 

limitation on the exemptions specified 

in paragraph (b)(1) of this section. 

(4) Upon request of any person, the 

Commission may determine whether a 

qualifying facility is exempt from a 

particular state law or regulation. 

5. In § 292.203, paragraphs (a) and (b) 

are revised to read as follows: 

§ 292.203 General requirements for 

qualification. 

(a) Small power production facilities. 

Except as provided in paragraph (c) of 

this section, a small power production 

facility is a qualifying facility if it: 

(1) Meets the maximum size criteria 

specified in § 292.204(a); and 

(2) Meets the fuel use criteria 

specified in § 292.204(b). 

(b) Cogeneration facilities. A 

cogeneration facility, including any 

diesel and dual-fuel cogeneration 

facility, is a qualifying facility if it: 

(1) Meets any applicable operating 

and efficiency standards specified in 

§ 292.205(a) and (b). 

(2) [Reserved] 

* * * * * 

§ 292.206 [Removed] 

6. Section 292.206 is removed. 

Subchapter D—Approved Forms, Federal 

Power Act and Public Utility Regulatory 

Policies Act of 1978 

PART 131—FORMS 

1. The authority citation for part 131 

continues to read: 

Authority: 16 U.S.C. 791a–825r. 2601–

2645; 31 U.S.C. 9701; 42 U.S.C. 7101–7352. 

2. Section 131.80 is amended by 

revising paragraphs 1a, 1b, and 1c of 

Part A and by adding a new heading and 

paragraph 15 of Part C to read as 

follows: 

§ 131.80 FERC Form No. 556, Certification 

of qualifying facility status for an existing 

or a proposed small power production or 

cogeneration facility. 

(See § 292.207 of this chapter.) 

FERC Form 556, OMB No. 1902–0075 

Expireslllll 

Certification of Qualifying Facility Status for 

an Existing or a Proposed Small Power 

Production or Cogeneration Facility 

(To be completed for the purpose of 

demonstrating up-to-date conformance with 

the qualification criteria of Section 

292.203(a)(1) or Section 292.203(b), based on 

actual or planned operating experience) 

General instructions: Part A of the form 

should be completed by all small power 

producers or cogenerators. Part B applies to 

small power production facilities. Part C 

applies to cogeneration facilities. All 

references to sections are with regard to Part 

292 of Title 18 of the Code of Federal 

Regulations, unless otherwise indicated. 

Part A—General Information To Be 

Submitted by All Applicants 

1a. Full name: 

Docket Number assigned to the immediately 

preceding submittal filed with the 

Commission in connection with the instant 

facility, if any: QF ll–ll–ll 

Purpose of instant filing (self-certification or 

self-recertification [Section 292.207(a)(1)], or 

application for Commission certification or 

recertification [Sections 292.207(b) and 

(d)(2)]): 

1b. Full address of applicant: 

1c. Indicate the owner(s) of the facility 

(including the percentage of ownership held 

by any electric utility or electric utility 

holding company, or by any persons owned 

by either) and the operator of the facility. 

Additionally, state whether or not any of the 

non-electric utility owners or their upstream 

owners are engaged in the generation or sale 

of electric power, or have any ownership or 

operating interest in any electric facilities 

other than qualifying facilities. In order to 

facilitate review of the application, the 

applicant may also provide an ownership 

chart identifying the upstream ownership of 

the facility. Such chart should indicate 

ownership percentages where appropriate. 

* * * * * 

Part C—Description of the Cogeneration 

Facility 

* * * * * 

For New Cogeneration Facilities 

15. For any cogeneration facility that was 

either not certified as a qualifying 

cogeneration facility on or before August 8, 

2005, or that had not filed a notice of selfcertification, self-recertification or an 

application for Commission certification 

under section 292.207 prior to [the date the 

Commission issues a final rule], also show: 

(i) The thermal energy output of the 

cogeneration facility is used in a productive 

and beneficial manner; 

(ii) The electrical, thermal, chemical and 

mechanical output of the cogeneration 

facility is used fundamentally for industrial, 

commercial, or institutional purposes and is 

not intended fundamentally for sale to an 

electric utility, taking into account 

technological, efficiency, economic, and 

variable thermal energy requirements, as well 

as state laws applicable to sales of electric 

energy from a qualifying facility to its host 

facility; and 

(iii) Continuing progress in the 

development of efficient electric energy 

generating technology. 

[FR Doc. 05–20695 Filed 10–17–05; 8:45 am] 

BILLING CODE 6717–01–P 

SOCIAL SECURITY ADMINISTRATION 

20 CFR Parts 404 and 416 

RIN 0960–AG10 

Rules for the Issuance of Work Report 

Receipts, Payment of Benefits for Trial 

Work Period Service Months After a 

Fraud Conviction, Changes to the 

Student Earned Income Exclusion, and 

Expansion of the Reentitlement Period 

for Childhood Disability Benefits 

AGENCY: Social Security Administration. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: We are proposing to amend 

our rules to reflect and implement 

sections 202, 208, 420A, and 432 of the 

Social Security Protection Act of 2004 

(the SSPA). Section 202 of the SSPA 

requires us to issue a receipt each time 

you or your representative report a 

change in your work activity or give us 

documentation of a change in your 

earnings if you receive benefits based on 

disability under title II or title XVI of the 

Social Security Act (the Act). Section 

208 changes the way we pay benefits 

during the trial work period if you are 

convicted by a Federal court of 

fraudulently concealing your work 

activity. Section 420A changed the law 

to allow you to become reentitled to 

childhood disability benefits under title 

II at any time if your previous 

entitlement to childhood disability 

benefits was terminated because of the 

performance of substantial gainful 

activity. Section 432 changes the way 

we decide if you are eligible for the 

student earned income exclusion. We 

also propose to change the SSI student 

policy to include home schooling as a 

form of regular school attendance. 

Additionally, we are proposing to apply 

the student earned income exclusion 

when determining the countable income 

of an ineligible spouse or ineligible 

parent. 

DATES: To be sure that your comments 

are considered, we must receive them 

by December 19, 2005.