Document ID: FERC-2009-0664-0001
Agency: ferc
Document Type: Notice
Title: Commission Information Collection Activities (FERC-725); Comment Request; Submitted for OMB Review
Posted Date: 2009-05-07T04:00Z

[Federal Register: May 7, 2009 (Volume 74, Number 87)]
[Notices]               
[Page 21349-21351]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07my09-44]                         

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. IC09-725-001]

 
Commission Information Collection Activities (FERC-725); Comment 
Request; Submitted for OMB Review

April 30, 2009.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice.

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SUMMARY: In compliance with the requirements of section 3507 of the 
Paperwork Reduction Act of 1995, 44 U.S.C. 3507, the Federal Energy 
Regulatory Commission (Commission) has submitted the information 
collection described below to the Office of Management and Budget (OMB) 
for review of the information collection requirements. Any interested 
person may file comments directly with OMB and should address a copy of 
those comments to the Commission as explained below. The Commission 
received no comments in response to the Federal Register notice (74FR 
6861, 2/11/2009) and has made this notation in its submission to OMB.

DATES: Comments on the collection of information are due by June 5, 
2009.

ADDRESSES: Address comments on the collection of information to the 
Office of Management and Budget, Office of Information and Regulatory 
Affairs, Attention: Federal Energy Regulatory Commission Desk Officer. 
Comments to OMB should be filed electronically, c/o oira__
submission@omb.eop.gov and include OMB Control Number 1902-0225 as a 
point of reference. The Desk Officer may be reached by telephone at 
202-395-4638.
    A copy of the comments should also be sent to the Federal Energy 
Regulatory Commission and should refer to Docket No. IC09-725-001. 
Comments may be filed either electronically or in paper format. Those 
persons filing electronically do not need to make a paper filing. 
Documents filed electronically via the Internet must be prepared in an 
acceptable filing format and in compliance with the Federal Energy 
Regulatory Commission submission guidelines. Complete filing 
instructions and acceptable filing formats are available at http://
www.ferc.gov/help/submission-guide/electronic-media.asp. To file the 
document electronically, access the Commission's Web site and click on 
Documents & Filing, E-Filing (http://www.ferc.gov/docs-filing/
efiling.asp), and then follow the instructions for each screen. First 
time users will have to establish a user name and password. The 
Commission will send an automatic acknowledgement to the sender's e-
mail address upon receipt of comments.
    For paper filings, an original and 2 copies of the comments should 
be submitted to the Federal Energy Regulatory Commission, Secretary of 
the Commission, 888 First Street, NE., Washington, DC 20426, and should 
refer to Docket No. IC09-725-001.
    All comments may be viewed, printed or downloaded remotely via the 
Internet through FERC's homepage using the ``eLibrary'' link. For user 
assistance, contact fercolinesupport@ferc.gov or toll-free at (866) 
208-3676 or for TTY, contact (202) 502-8659.

FOR FURTHER INFORMATION CONTACT: Ellen Brown may be reached by 
telephone at (202) 502-8663, by fax at (202) 273-0873, and by e-mail at 
ellen.brown@ferc.gov.

SUPPLEMENTARY INFORMATION: The information collected under the 
requirements of FERC-725 (``Certification of Electric Reliability 
Organization; Procedures for Electric Reliability Standards'' (OMB 
Control No. 1902-0225)) is used by the Commission to implement the 
statutory provisions of Title XII, subtitle A of the Energy Policy Act 
of 2005 (EPAct 2005).\1\
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    \1\ Energy Policy Act of 2005, Public Law 109-58, 119 Stat. 594 
(2005) (codified at 42 U.S.C. 16451, et seq.)
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    The Electricity Modernization Act of 2005 was enacted into law as 
part of the Energy Policy Act of 2005 on August 8, 2005. Subtitle A of 
the Electricity Modernization Act amended the Federal Power Act (FPA) 
by adding a new section 215, titled ``Electric Reliability.'' Section 
215 of the FPA buttresses the Commission's efforts to strengthen the 
reliability of the interstate grid through the granting of new 
authority to provide for a system of mandatory Reliability Standards 
developed by the Electric Reliability Organization (ERO) \2\ and 
reviewed and approved by FERC.
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    \2\ ``Electric Reliability Organization'' or ``ERO'' means the 
organization (certified by the Commission) established for the 
purpose of developing and enforcing Reliability Standards for the 
Bulk-Power System, subject to Commission review.
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    On February 3, 2006, the Commission issued Order No. 672 \3\ 
certifying a single Electric Reliability Organization (ERO) to oversee 
the reliability of the United States' portion of the interconnected 
North American Bulk-Power System, subject to Commission oversight. The 
Reliability Standards apply to all users, owners and operators of the 
Bulk-Power System. The Commission has the authority to: (1) Approve all 
ERO actions, (2) order the ERO to carry out its responsibilities under 
these statutory provisions, and (3), as appropriate, independently 
enforce Reliability Standards.
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    \3\ Rules Concerning Certification of the Electric Reliability 
Organization; and Procedures for the Establishment, Approval, and 
Enforcement of Electric Reliability Standards ] 31,204 71 FR 8662 
(2006) Order on reh'g, 71 FR 19,814 (2006), FERC Statutes and 
Regulations ] 31,212 (2006).
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    Once certified, the ERO must submit each proposed Reliability 
Standard to the Commission for approval. Only a Reliability Standard 
approved by the Commission is enforceable under section 215 of the FPA.
    The ERO may delegate its enforcement responsibilities to a

[[Page 21350]]

Regional Entity (RE). Delegation is effective only after the Commission 
approves the delegation agreement. A Regional Entity may also propose a 
Reliability Standard to the ERO for submission to the Commission for 
approval. This Reliability Standard may be either for application to 
the entire interconnected Bulk-Power System or for application only 
within its own region.
    The ERO or a Regional Entity must monitor compliance with the 
Reliability Standards. It will direct a user, owner or operator of the 
Bulk-Power System that violates a Reliability Standard to comply with 
the Reliability Standard. The ERO or Regional Entity may impose a 
penalty on a user, owner or operator for violating a Reliability 
Standard, subject to review by, and appeal to, the Commission.
    Subtitle A of the Electricity Modernization Act of 2005 also 
includes two reliability-related provisions that are not part of 
section 215 of the FPA. Section 1211(b) of the Act provides that the 
ERO certified by the Commission, as well as Regional Entities, are not 
departments, agencies or instrumentalities of the United States 
Government. Section 1211(c) provides that federal agencies responsible 
for approving access to electric transmission or distribution 
facilities located on lands within the United States will, in 
accordance with applicable law, expedite any federal agency approvals 
that are necessary to allow the owners or operators of these facilities 
to comply with a FERC-approved Reliability Standard that pertains to 
vegetation management, electric service restoration, or resolution of 
situations that imminently endanger the reliability or safety of the 
facilities.
    Order No. 672 set forth the criteria that an ERO applicant must 
satisfy to qualify as the ERO, including the ability to develop and 
enforce Reliability Standards.\4\ The ERO submission must include an 
evaluation of the effectiveness of each Regional Entity. The Commission 
will, as part of its assessment of the ERO's performance, assess the 
performance of each Regional Entity and issue an order addressing 
Regional Entity compliance. If a Regional Entity fails to comply 
adequately with the Commission order, the Commission may institute a 
proceeding to enforce its order, including, if necessary and 
appropriate, a proceeding to consider rescission of the Commission's 
approval of the Regional Entity's delegation agreement.
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    \4\ The criteria stated in the Final Rule track the statutory 
criteria for ERO certification provided in section 215(c) of the 
FPA.
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    The Electricity Modernization Act of 2005 buttresses the 
Commission's efforts to strengthen the interstate transmission grid 
through the granting of authority pursuant to section 215 of the FPA 
which provides for a system of mandatory reliability rules developed by 
the ERO, established by the Commission, and enforced by the Commission, 
subject to Commission review.
    A submission of the information is necessary for the Commission to 
carry out its responsibilities under EPAct 2005.\5\\\ The Commission 
implements its responsibilities through the Code of Federal 
Regulations, 18 CFR Part 39. These filing requirements are mandatory.
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    \5\ 42 U.S.C. 16451 et seq.
    \6\ The burden and cost estimates do not include the cost of 
applying to become the ERO because that application process and the 
resulting FERC selection have been completed.
    The burden and cost estimates for FERC-725 do not include 
compliance with the Reliability Standards. The reporting 
requirements (and the associated burden and cost) related to the 
Reliability Standards are cleared separately in other collections, 
including: FERC-725A (Mandatory Reliability Standards for the Bulk-
Power System; OMB No. 1902-0244), FERC-725B (Mandatory Reliability 
Standards for Critical Infrastructure Protection; OMB No. 1902-
0248), FERC-725D (Facilities Design, Connections and Maintenance 
Reliability Standards; OMB No. 1902-0247), FERC-725E (Mandatory 
Reliability Standards for the Western Electric Coordinating Council; 
OMB No. 1902-0246), and FERC-725F (Mandatory Reliability Standard 
for Nuclear Plant Interface Coordination; OMB No. 1902-0249). This 
Notice requests comments on only the FERC-725.
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    Action: The Commission is requesting a three-year extension of the 
current expiration date, with no change to the existing reporting 
requirements in 18 CFR Part 39.
    Burden Statement: Based on additional information from the ERO and 
staff, the burden and cost estimates provided in the 60-day Notice have 
been revised. The estimated annual public reporting burden and cost for 
FERC-725 follow.

----------------------------------------------------------------------------------------------------------------
                                                                                    Est. annual     Est. annual
         FERC-725 \6\                                                   FTE        burden (hrs.)     cost ($)
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Annual Costs for NERC (ERO)..  3 Year Self      Contractor......        \7\ 3.33    \7\ 3,266.67    \7\ $350,000
                                Assessment
                                (Due 7/09) \7\.
                               Reliability      Internal........             1.5           2,940         210,663
                                Reporting
                                Estimate \8\.
                               Estimate.......  Software........               0               0          75,000
                               Audits, spot     ................  ..............          41,437       2,797,821
                                checks, self
                                certifications
                                , periodic
                                data
                                submittals,
                                investigations
                                , & mitigation
                                plan
                                confirmation
                                (under 18 CFR
                                39.11) \8\.
                                                                 -----------------------------------------------
    Total Est. Annual Costs for NERC (ERO)......................            4.83       47,643.67       3,433,484
Annual Costs \9\ for Regional  Reliability      Internal........             4.5           8,820         519,840
 Entities (RE).                 Reporting
                                Estimate.
                               Estimate.......  Software........               0               0         225,000
                               Audits, spot     ................  ..............         208,060      11,555,332
                                checks, self
                                certifications
                                , periodic
                                data
                                submittals,
                                investigations
                                , & mitigation
                                plan
                                confirmation
                                (under 18 CFR
                                39.11) \9\.
                                                                 -----------------------------------------------
    Total Est. Annual Costs for Regional Entities...............             4.5         216,880      12,300,172
Annual Costs for Registered    Audits, spot     ................  ..............         707,781      43,656,818
 Entities \10\.                 checks, self
                                certifications
                                , periodic
                                data
                                submittals,
                                investigations
                                , & mitigation
                                plan
                                confirmation
                                (under 18 CFR
                                39.11).
                                                                 -----------------------------------------------
    Total Est. Annual Costs for Registered Entities.............            9.33         707,781      43,656,818

[[Page 21351]]

    Total Estimated Annual Burden & Cost........................  ..............      972,304.67      59,390,474
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    The reporting burden includes the total time, effort, or financial 
resources expended to generate, maintain, retain, disclose, or provide 
the information including: (1) Reviewing instructions; (2) developing, 
acquiring, installing, and utilizing technology and systems for the 
purposes of collecting, validating, verifying, processing, maintaining, 
disclosing and providing information; (3) adjusting the existing ways 
to comply with any previously applicable instructions and requirements; 
(4) training personnel to respond to a collection of information; (5) 
searching data sources; (6) completing and reviewing the collection of 
information; and (7) transmitting, or otherwise disclosing the 
information.
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    \7\ Per Order 672, the ERO will undergo a performance assessment 
three years after certification (July 2009) and every five years 
thereafter. Therefore, the total figures for FTE (10), burden hrs. 
(9,800), and cost ($1,050,000) associated with doing the self-
assessment have been divided by 3 to provide average annual figures 
for this notice.
    The methodology for estimating the totals for the 3-year self 
assessment follows. Staff estimates that the self assessment will 
take 6 months to complete. In order for NERC to complete the work in 
half the time, we assume that NERC must hire double the workforce, 
so 10 contractors are used in the present calculation. The 
$1,050,000 was taken directly from NERC's 2009 Business Plan and 
Budget.
    \8\ NERC Employee Cost Estimate: NERC Employee Compensation 
Average is $140,442 (from 2009 Budget salary average). For 1.5 
Employees, the Annualized Salary Expense is $210,663.
    \9\ Regional Entity (RE) Employee Cost Estimate: RE Employee 
Compensation Average of $115,520 (from 2009 Budget salary average). 
For 4.5 Employees, the Annualized Salary Expense is $519,840.
    \10\ The average employee works 2,080 hours per year. The 
estimated average annual cost per employee is $128,297.
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    The estimate of cost for respondents is based upon salaries for 
professional and clerical support, as well as direct and indirect 
overhead costs. Direct costs include all costs directly attributable to 
providing this information, such as administrative costs and the cost 
for information technology. Indirect or overhead costs are costs 
incurred by an organization in support of its mission. These costs 
apply to activities which benefit the whole organization rather than 
any one particular function or activity.
    Comments are invited on: (1) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the Commission, including whether the information will have practical 
utility; (2) the accuracy of the agency's estimates of the burden of 
the proposed collection of information, including the validity of the 
methodology and assumptions used; (3) ways to enhance the quality, 
utility and clarity of the information to be collected; and (4) ways to 
minimize the burden of the collection of information on those who are 
to respond, including the use of appropriate automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology, e.g. permitting electronic submission of 
responses.

Kimberly D. Bose,
Secretary.
[FR Doc. E9-10518 Filed 5-6-09; 8:45 am]

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