RM15-25, Final Rule, published in Fed. Reg.

44998

Federal Register / Vol. 81, No. 133 / Tuesday, July 12, 2016 / Rules and Regulations

List of Subjects in 14 CFR Part 39
Air transportation, Aircraft, Aviation
safety, Incorporation by reference,
Safety.
Adoption of the Amendment
Accordingly, under the authority
delegated to me by the Administrator,
the FAA amends 14 CFR part 39 as
follows:
PART 39—AIRWORTHINESS
DIRECTIVES
1. The authority citation for part 39
continues to read as follows:

■

Authority: 49 U.S.C. 106(g), 40113, 44701.
§ 39.13

[Amended]

2. The FAA amends § 39.13 by adding
the following new airworthiness
directive (AD):

■

2016–13–09 Bombardier, Inc.: Amendment
39–18573. Docket No. FAA–2015–8129;
Directorate Identifier 2014–NM–197–AD.
(a) Effective Date
This AD becomes effective August 16,
2016.
(b) Affected ADs
None.
(c) Applicability
This AD applies to Bombardier, Inc. Model
CL–600–2B16 (CL–604 Variant) airplanes,
certificated in any category, serial numbers
(S/Ns) 5301 through 5665 inclusive, and
5701 through 5962 inclusive.
(d) Subject
Air Transport Association (ATA) of
America Code 27, Flight Controls.
(e) Reason
This AD was prompted by a determination
that certain maintenance tasks for the
horizontal stabilizer trim actuator (HSTA) are
inadequate. We are issuing this AD to detect
and correct premature wear and cracking of
the HSTA, which could result in failure of
the HSTA and consequent loss of control of
the airplane.

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(f) Compliance
Comply with this AD within the
compliance times specified, unless already
done.
(g) Maintenance or Inspection Program
Revision
Within 30 days after the effective date of
this AD: Revise the maintenance or
inspection program, as applicable, to
incorporate Task 27–42–01–109, Restoration
(Overhaul) of the Horizontal Stabilizer Trim
Actuator, Part No. 604–92305–7 and Subs
(Vendor Part No. 8454–3 and Subs); and Task
27–42–01–111, Detailed Inspection of the
Horizontal Trim Actuator (HSTA) Secondary
Load Path Indicator, Part No. 604–92305–7
and Subs (Vendor Part No. 8454–3 and Subs);
of the applicable document identified in
paragraph (g)(1) or (g)(2) of this AD.

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(1) For Model CL–600–2B16 (CL–604
Variant) airplanes, serial numbers 5301
through 5665 inclusive: Section 5–10–40,
Certification Maintenance Requirements, of
Part 2, Airworthiness Limitations, of the
Bombardier Challenger 604 Time Limits/
Maintenance Checks Manual, Revision 22,
dated July 11, 2014.
(2) For Model CL–600–2B16 (CL–604
Variant) airplanes, serial numbers 5701
through 5962 inclusive: Section 5–10–40,
Certification Maintenance Requirements, of
Part 2, Airworthiness Limitations, of the
Bombardier Challenger 605 Time Limits/
Maintenance Checks Manual, Revision 10,
dated July 11, 2014.
(h) No Alternative Actions or Intervals
After the maintenance or inspection
program has been revised, as required by
paragraph (g) of this AD, no alternative
actions (e.g., inspections) or intervals may be
used unless the actions or intervals are
approved as an alternative method of
compliance (AMOC) in accordance with the
procedures specified in paragraph (i)(1) of
this AD.
(i) Other FAA AD Provisions
The following provisions also apply to this
AD:
(1) Alternative Methods of Compliance
(AMOCs): The Manager, New York Aircraft
Certification Office (ACO), ANE–170, FAA,
has the authority to approve AMOCs for this
AD, if requested using the procedures found
in 14 CFR 39.19. In accordance with 14 CFR
39.19, send your request to your principal
inspector or local Flight Standards District
Office, as appropriate. If sending information
directly to the ACO, send it to ATTN:
Program Manager, Continuing Operational
Safety, FAA, New York ACO, 1600 Stewart
Avenue, Suite 410, Westbury, NY 11590;
telephone 516–228–7300; fax 516–794–5531.
Before using any approved AMOC, notify
your appropriate principal inspector, or
lacking a principal inspector, the manager of
the local flight standards district office/
certificate holding district office. The AMOC
approval letter must specifically reference
this AD.
(2) Contacting the Manufacturer: For any
requirement in this AD to obtain corrective
actions from a manufacturer, the action must
be accomplished using a method approved
by the Manager, New York ACO, ANE–170,
FAA; or Transport Canada Civil Aviation
(TCCA); or Bombardier, Inc.’s TCCA Design
Approval Organization (DAO). If approved by
the DAO, the approval must include the
DAO-authorized signature.
(j) Related Information
Refer to Mandatory Continuing
Airworthiness Information (MCAI) Canadian
Airworthiness Directive CF–2014–30, dated
September 5, 2014, for related information.
This MCAI may be found in the AD docket
on the Internet at http://www.regulations.gov
by searching for and locating Docket No.
FAA–2015–8129.
(k) Material Incorporated by Reference
(1) The Director of the Federal Register
approved the incorporation by reference
(IBR) of the service information listed in this

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paragraph under 5 U.S.C. 552(a) and 1 CFR
part 51.
(2) You must use this service information
as applicable to do the actions required by
this AD, unless this AD specifies otherwise.
(i) Section 5–10–40, Certification
Maintenance Requirements, of Part 2,
Airworthiness Limitations, of the Bombardier
Challenger 604 Time Limits/Maintenance
Checks Manual, Revision 22, dated July 11,
2014.
(ii) Section 5–10–40, Certification
Maintenance Requirements, of Part 2,
Airworthiness Limitations, of the Bombardier
Challenger 605 Time Limits/Maintenance
Checks Manual, Revision 10, dated July 11,
2014.
(3) For service information identified in
this AD, contact Bombardier, Inc., 400 CoˆteVertu Road West, Dorval, Que´bec H4S 1Y9,
Canada; Widebody Customer Response
Center, toll-free telephone 1–866–538–1247,
or direct dial telephone 1–514–855–2999; fax
1–514–855–7401; email ac.yul@
aero.bombardier.com; Internet http://
www.bombardier.com.
(4) You may view this service information
at the FAA, Transport Airplane Directorate,
1601 Lind Avenue SW., Renton, WA. For
information on the availability of this
material at the FAA, call 425–227–1221.
(5) You may view this service information
that is incorporated by reference at the
National Archives and Records
Administration (NARA). For information on
the availability of this material at NARA, call
202–741–6030, or go to: http://
www.archives.gov/federal-register/cfr/ibrlocations.html.
Issued in Renton, Washington, on June 21,
2016.
Dorr M. Anderson,
Acting Manager, Transport Airplane
Directorate, Aircraft Certification Service.
[FR Doc. 2016–15354 Filed 7–11–16; 8:45 am]
BILLING CODE 4910–13–P

DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
18 CFR Part 39
[Docket No. RM15–25–000; Order No. 824]

Availability of Certain North American
Electric Reliability Corporation
Databases to the Commission
Federal Energy Regulatory
Commission, Department of Energy.
ACTION: Final rule.
AGENCY:

The Federal Energy
Regulatory Commission (Commission)
amends its regulations to require the
North American Electric Reliability
Corporation (NERC) to provide the
Commission, and Commission staff,
with access, on a non-public and
ongoing basis, to certain databases

SUMMARY:

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Federal Register / Vol. 81, No. 133 / Tuesday, July 12, 2016 / Rules and Regulations
compiled and maintained by NERC. The
amended regulation applies to the
following NERC databases: The
Transmission Availability Data System,
the Generating Availability Data System,
and the protection system misoperations
database. Access to these databases,
which will be limited to data regarding
U.S. facilities provided to NERC on a
mandatory basis, will provide the
Commission with information necessary
to determine the need for new or
modified Reliability Standards and to
better understand NERC’s periodic
reliability and adequacy assessments.
DATES: Effective date: This rule will
become effective July 12, 2016.
Compliance date: The compliance
date is based on issuance of the final
rule in Docket No. RM16–15–000. The
Commission will publish a document in
the Federal Register announcing the
compliance date.
FOR FURTHER INFORMATION CONTACT:
Raymond Orocco-John (Technical
Information), Office of Electric
Reliability, Federal Energy Regulatory
Commission, 888 First Street NE.,
Washington, DC 20426, Telephone:
(202) 502–6593, Raymond.OroccoJohn@ferc.gov.
Julie Greenisen (Legal Information),
Office of the General Counsel, Federal
Energy Regulatory Commission, 888
First Street NE., Washington, DC
20426, Telephone: (202) 502–6362,
julie.greenisen@ferc.gov.
SUPPLEMENTARY INFORMATION:

Order No. 824

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Final Rule
1. The Commission amends its
regulations, pursuant to section 215 of
the Federal Power Act (FPA),1 to require
the North American Electric Reliability
Corporation (NERC) to provide the
Commission, and Commission staff,
with access, on a non-public and
ongoing basis, to certain databases
compiled and maintained by NERC. The
amended regulation applies to the
following NERC databases: (1) The
Transmission Availability Data System
(TADS), (2) the Generating Availability
Data System (GADS), and (3) the
protection system misoperations
database. Access to these databases,
which will be limited to data regarding
U.S. facilities provided to NERC on a
mandatory basis, will provide the
Commission with information necessary
to determine the need for new or
modified Reliability Standards and to
better understand NERC’s periodic
reliability and adequacy assessments.
1 16

U.S.C. 824o.

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I. Background
A. Section 215 and Order No. 672
2. Section 215 of the FPA requires the
Commission to certify an Electric
Reliability Organization (ERO),
responsible for developing mandatory
and enforceable Reliability Standards,
subject to Commission review and
approval. Reliability Standards may be
enforced by NERC, subject to
Commission oversight, or by the
Commission independently.2 In
addition, section 215(g) of the FPA
requires the ERO to conduct periodic
assessments of the reliability and
adequacy of the Bulk-Power System in
North America.3 Pursuant to section 215
of the FPA, the Commission established
a process to select and certify an ERO,4
and subsequently certified NERC as the
ERO.
3. Section 39.2(d) of the Commission’s
regulations requires NERC and each
Regional Entity to ‘‘provide the
Commission such information as is
necessary to implement section 215 of
the Federal Power Act.’’ 5 Section
39.2(d) of the Commission’s regulations
also requires each user, owner and
operator of the Bulk-Power System
within the United States (other than
Alaska and Hawaii) to provide the
Commission, NERC and each applicable
Regional Entity with ‘‘such information
as is necessary to implement section 215
of the Federal Power Act as determined
by the Commission and set out in the
Rules of the Electric Reliability
Organization and each applicable
Regional Entity.’’ 6
4. The Commission promulgated
section 39.2(d) of its regulations in
Order No. 672.7 The Commission
explained in Order No. 672 that:
The Commission agrees . . . that, to fulfill
its obligations under this Final Rule, the ERO
or a Regional Entity will need access to
certain data from users, owners and operators
of the Bulk-Power System. Further, the
Commission will need access to such
information as is necessary to fulfill its
oversight and enforcement roles under the
statute.8

B. NERC Databases
5. NERC conducts ongoing,
mandatory data collections from
U.S.C. 824o(e).
824o(g).
4 Rules Concerning Certification of the Electric
Reliability Organization; and Procedures for the
Establishment, Approval, and Enforcement of
Electric Reliability Standards, Order No. 672, FERC
Stats. & Regs. ¶ 31,204, order on reh’g, Order No.
672–A, FERC Stats. & Regs. ¶ 31,212 (2006).
5 18 CFR 39.2(d).
6 Id.
7 Order No. 672, FERC Stats. & Regs. ¶ 31,204 at
P 114.
8 Id.

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2 16

3 Id.

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44999

registered entities to populate databases
for transmission outages through TADS,
generation outages through GADS, and
protection system misoperations
through NERC’s protection system
misoperations database. Each of these
NERC databases is discussed below.
1. TADS Database
6. NERC initiated collection of TADS
data on a mandatory basis in 2007 by
issuing a data request pursuant to
section 1600 of the NERC Rules of
Procedure.9 The request required that,
beginning in January 2008, applicable
entities provide certain data for the
TADS database based on a common
template.10 In 2010, NERC expanded its
collection of TADS data to include
additional fields of information on
transmission outages.11
7. The TADS database compiles
transmission outage data in a common
format for: (1) Bulk electric system AC
circuits (overhead and underground); (2)
transmission transformers (except
generator step-up units); (3) bulk
electric system AC/DC back-to-back
converters; and (4) bulk electric system
DC circuits.12 The TADS data collection
template includes the following
information fields: (1) Type of facilities,
(2) outage start time and duration, (3)
event type, (4) initiating cause code, and
(5) sustained cause code (for sustained
outages).13 ‘‘Cause codes’’ for common
causes of transmission outages include:
(1) Lightning, (2) fire, (3) vandalism, (4)
failed equipment (with multiple sublistings), (5) vegetation, and (6)
‘‘unknown.’’ 14 There were 10,787
reported TADS events between 2012
and 2014.15
9 See generally NERC, Summary of Phase I TADS
Data Collection (November 9, 2007), http://
www.nerc.com/pa/RAPA/tads/
TADSTF%20Archives%20DL/TADS_Data_Request_
Summary.pdf.
10 See generally NERC, Transmission Availability
Data System (TADS) Data Reporting Instruction
Manual (November 20, 2007), http://www.nerc.com/
comm/PC/Transmission%20Availability%20
Data%20System%20Working%20Grou/
TADSTF%20Archives/Data_Reporting_Instr_
Manual_11_20_07.pdf.
11 See generally NERC, Transmission Availability
Data System Phase II Final Report (September 11,
2008), http://www.nerc.com/pa/RAPA/tads/
TransmissionAvailabilityDataSyatemRF/TADS_
Phase_II_Final_Report_091108.pdf.
12 See NERC TADS Home Page, http://
www.nerc.com/pa/RAPA/tads/Pages/default.aspx.
13 See Transmission Availability Data System
(TADS) Data Reporting Instruction Manual (August
1, 2014), http://www.nerc.com/pa/RAPA/tads/
Documents/2015_TADS_DRI.pdf.
14 See Transmission Availability Data System
Definitions (August 1, 2014), http://www.nerc.com/
pa/RAPA/tads/Documents/2015_TADS_Appendix_
7.pdf.
15 See, e.g., NERC, State of Reliability 2015,
Appendix A (Statistical Analysis for Risk Issue

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8. NERC uses TADS data to develop
transmission metrics to analyze outage
frequency, duration, causes, and other
factors related to transmission
outages.16 NERC also provides
individual transmission owners with
TADS metrics for their facilities.17
NERC issues an annual public report
based on TADS data that shows
aggregate metrics for each NERC Region,
with the underlying data accorded
confidential treatment.18

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2. GADS Database
9. NERC’s collection of GADS data
has been mandatory since 2012,
pursuant to a data request issued in
accordance with section 1600 of the
NERC Rules of Procedure.19 The GADS
database collects, records, and retrieves
operating information on power plant
availability, including event,
performance, and design data.20 GADS
data are used to support equipment
reliability and availability analyses, as
well as benchmarking studies.21
10. Currently, GADS collects outage
data pertaining to ten types of
conventional generating units with
capacity of 20 MW and larger,
including: (1) Fossil steam including
fluidized bed design; (2) nuclear; (3) gas
turbines/jet engines; (4) internal
combustion engines (diesel engines); (5)
hydro units/pumped storage; (6)
combined cycle blocks and their related
components; (7) cogeneration blocks
and their related components; (8) multiboiler/multi-turbine units; (9)
geothermal units; and (10) other
miscellaneous conventional generating
units (e.g., biomass, landfill gases).22
The GADS data collection template
includes the following design, event,
and performance information: (1) Design
records, (2) event records, and (3)
performance records.23 Design records
refer to the characteristics of each unit
Identification and Transmission Outage Severity
Analysis) at 86 (May 2015), http://www.nerc.com/
pa/RAPA/PA/Performance%20Analysis%20DL/
2015%20State%20of%20Reliability.pdf. The most
recent data reported by NERC for TADS events is
for the period 2012–2014.
16 See NERC TADS Home Page.
17 Id.
18 Id.
19 See NERC, Generating Availability Data System
Mandatory Reporting of Conventional Generation
Performance Data at 2 (July 2011), http://
www.nerc.com/pa/RAPA/gads/MandatoryGADS/
Revised_Final_Draft_GADSTF_Recommendation_
Report.pdf; see also NERC GADS Home Page,
http://www.nerc.com/pa/RAPA/gads/Pages/
default.aspx.
20 See NERC GADS Home Page.
21 Id.
22 Generating Availability Data System Mandatory
Reporting of Conventional Generation Performance
Data at 15.
23 Id., Appendix V (Rules of Procedure Section
1600 Justification) at 35.

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such as GADS utility code,24 GADS unit
code,25 NERC Regional Entity where the
unit is located, name of the unit,
commercial operating date, and type of
generating unit (fossil, combined cycle,
etc.).26 Event records include
information about when and to what
extent the generating unit could not
generate power.27 Performance records
refer to monthly generation,
unit-attempted starts, actual starts,
summary event outage information, and
fuels.28 NERC has developed ‘‘cause
codes’’ for the identification of common
causes of unit outages based on the type
of generating unit.29 For example, the
cause codes section for fossil steam
units includes codes for the boiler,
steam turbine, generator, balance of
plant, pollution control equipment,
external, regulatory, safety and
environmental, personnel errors, and
performance testing.30 For 2011–2013,
the GADS database contains data from
more than 5,000 units.31
11. NERC uses GADS data to measure
generation reliability and publishes
aggregate performance metrics for each
NERC Region in publicly available
annual state of reliability and reliability
assessment reports.32 The underlying
data are typically accorded confidential
treatment.
3. Protection System Misoperations
Database
12. The reporting of protection system
misoperations data by transmission
owners, generator owners and
distribution providers has been
mandatory since 2011 pursuant to
Reliability Standard PRC–004.33
24 The GADS utility code is a code number
referencing the utility that owns a generator.
25 The GADS unit code is a code name referencing
the generating unit involved. The GADS unit code
may or may not contain the name of the generator
owner.
26 Id.
27 Id.
28 Id.
29 NERC, Generating Availability Data System
Data Reporting Instructions (January 1, 2015),
Appendix B (Index to System/Component Cause
Codes) at 1, http://www.nerc.com/pa/RAPA/gads/
DataReportingInstructions/Appendix_B1_Fossil_
Steam_Unit_Cause_Codes.pdf. The most recent data
reported by NERC for GADS events is for the period
2011–2013.
30 Id.
31 State of Reliability 2015, Appendix B (Analysis
of Generation Data) at 107.
32 See, e.g., id., Appendix B (Analysis of
Generation Data).
33 The Commission approved Reliability Standard
PRC–004–1 (Analysis and Reporting of
Transmission Protection System Misoperations) in
Order No. 693. Mandatory Reliability Standards for
the Bulk-Power System, Order No. 693, FERC Stats.
& Regs. ¶ 31,242, at PP 1467–1469, order on reh’g,
Order No. 693–A, 120 FERC ¶ 61,053 (2007). The
Commission subsequently approved the following
revisions and interpretations to Reliability Standard

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Following implementation of Reliability
Standard PRC–004–4, the obligation to
report misoperation data will remain
mandatory but will be accomplished
through a data request pursuant to
section 1600 of the NERC Rules of
Procedure.34
13. Currently, the protection system
misoperations database collects more
than 20 data fields for a reportable
misoperation event, including: (1)
Misoperation date; (2) event description;
(3) protection systems/components that
misoperated; (4) equipment removed
from service (permanently or
temporarily) as the result of the
misoperation; (5) misoperation category;
and (6) cause(s) of misoperation.35 For
2014, the protection system
misoperations database contains
information on approximately 2,000
misoperation events.36
14. Protection system misoperations
have exacerbated the severity of most
cascading power outages, having played
a significant role in the August 14, 2003
Northeast blackout, for example.37
NERC uses protection system
misoperations data to assess protection
system performance and trends in
protection system performance that may
negatively impact reliability.38 NERC
publishes aggregate misoperation
PRC–004, which was first renamed Analysis and
Mitigation of Transmission and Generation
Protection System Misoperations and then renamed
Protection System Misoperation Identification and
Correction: Reliability Standards PRC–004–1a,
PRC–004–2, PRC–004–2a, PRC–004–2.1a, PRC–
004–2.1(i)a, PRC–004–3, and PRC–004–4. See North
American Electric Reliability Corp., 136 FERC ¶
61,208 (2011) (approving interpretation resulting in
Reliability Standard PRC–004–1a and Reliability
Standard PRC–004–2a); North American Electric
Reliability Corp., 134 FERC ¶ 61,015 (2011)
(approving Reliability Standard PRC–004–2);
Generator Requirements at the Transmission
Interface, Order No. 785, 144 FERC ¶ 61,221 (2013)
(approving Reliability Standard PRC–004–2.1a);
North American Electric Reliability Corp., 151 FERC
¶ 61,129 (2015) (approving Reliability Standard
PRC–004–3); North American Electric Reliability
Corp., 151 FERC ¶ 61,186 (2015) (approving
Reliability Standards PRC–004–2.1(i)a and PRC–
004–3); North American Electric Reliability Corp.,
Docket No. RD15–5–000 (Nov. 19, 2015) (delegated
letter order) (approving Reliability Standard PRC–
004–4); North American Electric Reliability Corp.,
Docket No. RD14–14–001, et al. (Dec. 4, 2015)
(delegated letter order) (approving Reliability
Standard PRC–004–4(i) and PRC–004–5(i)).
34 See generally NERC, Request for Data or
Information Protection System Misoperation Data
Collection (August 14, 2014), http://www.nerc.com/
pa/RAPA/ProctectionSystemMisoperations/PRC004-3%20Section%201600%20Data%20Request_
20140729.pdf. Reliability Standard PRC–004–4 will
become enforceable on July 1, 2016.
35 Id. at 13–14; see also NERC, Protection System
Misoperations Home Page, http://www.nerc.com/
pa/RAPA/ri/Pages/
ProtectionSystemMisoperations.aspx.
36 State of Reliability 2015 at 47.
37 See Request for Data or Information Protection
System Misoperation Data Collection at 5.
38 See id. at 14.

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Federal Register / Vol. 81, No. 133 / Tuesday, July 12, 2016 / Rules and Regulations
information for each NERC Region in
annual public state of reliability reports,
with the underlying data being accorded
confidential treatment.39

databases; (B) information voluntarily
provided; (C) confidential information;
(D) NERC’s alternative proposal; and (E)
information collection.

C. NOPR
15. On September 17, 2015, the
Commission issued a Notice of
Proposed Rulemaking (NOPR)
proposing to amend the Commission’s
regulations to require NERC to provide
the Commission, and Commission staff,
with access, on a non-public and
ongoing basis, to the TADS, GADS, and
protection system misoperations
databases regarding U.S. facilities.40 In
response to the NOPR, the Commission
received 13 sets of comments.41 We
address below the issues raised in the
NOPR and comments.

A. Authority To Require and Need for
Commission Access to NERC Databases

II. Discussion
16. Pursuant to section 215 of the
FPA, we amend the Commission’s
regulations to require NERC to provide
the Commission, and Commission staff,
with access (i.e., view and download
data), on an ongoing and non-public
basis, to the TADS, GADS, and
protection system misoperations
databases. As proposed in the NOPR
and clarified in the language of the new
regulation, the Commission’s access will
be limited to data regarding U.S.
facilities. In addition, as discussed
further below, the Commission
determines that NERC is not required to
provide the Commission with access to
data provided to NERC on a voluntary
basis.
17. As discussed below, the
Commission believes that access to
these three NERC databases is necessary
to carry out the Commission’s
obligations under section 215 of the
FPA. Further, as discussed in Section
II.B.1 below, we believe that if access is
limited to data mandatorily provided,
Commission access to the TADS, GADS,
and protection system misoperations
databases will not result in a reduction
in the level or quality of information
that users, owners and operators of the
Bulk-Power System share with NERC
and the Regional Entities, and will not
otherwise result in a so-called chilling
effect on NERC’s data-gathering efforts.
We also discuss the following matters
below: (A) Authority to require and
need for Commission access to NERC

NOPR
18. In the NOPR, the Commission
stated that its proposed access to the
TADS, GADS and protection system
misoperations databases regarding U.S.
facilities was ‘‘necessary to carry out the
Commission’s statutory authority: (1) To
evaluate the need to direct new or
modified Reliability Standards under
section 215(d) of the FPA; and (2) to
better understand NERC’s periodic
assessments and reports . . . regarding
the reliability and adequacy of the BulkPower System under section 215(g) of
the FPA.’’ 42 The Commission first
explained that access to the databases
would inform it ‘‘more quickly, directly
and comprehensively about reliability
trends or reliability gaps that might
require the Commission to direct the
ERO to develop new or modified
Reliability Standards,’’ responsibility
which falls not only to the ERO but also
to the Commission under FPA section
215(d).43 The Commission noted that
each of the three databases could
provide important information
regarding the need for new or modified
Reliability Standards and for assessing
Bulk-Power System reliability, as NERC
had itself recognized when justifying
the need for mandatory reporting (to
NERC) of TADS, GADS, and protection
system misoperation data.44
19. Second, the Commission
explained in the NOPR that access to
the data would ‘‘assist the Commission
with its understanding of the reliability
and adequacy assessments periodically
submitted by NERC pursuant to section
215(g) of the FPA.’’ 45 The Commission
further stated that having direct access
to the underlying data used in aggregate
form in NERC’s reliability reports would
‘‘help[ ] the Commission to monitor
causes of outages and detect emerging
reliability issues.’’ 46
Comments
20. Four commenters generally
support, or do not oppose, the
Commission’s proposal to access

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42 NOPR,

39 See,

e.g., State of Reliability 2015 at 45–48.
40 Availability of Certain North American Electric
Reliability Corporation Databases to the
Commission, Notice of Proposed Rulemaking, 80 FR
58,405 (Sept. 29, 2015), 152 FERC ¶ 61,208 (2015)
(NOPR).
41 The Appendix to this Final Rule lists the
entities that filed comments in response to the
NOPR.

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152 FERC ¶ 61,208 at P 17.
P 18.
44 See id. P 19 (quoting NERC’s statements that
‘‘TADS data is intended to provide a basis for
standards’’ and that protection system
misoperations data is used to ‘‘[i]dentify trends in
Protection System performance that negatively
impact reliability.’’)
45 Id. P 20.
46 Id.

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43 Id.

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45001

NERC’s TADS, GADS, and protection
system misoperations databases.47
Resilient Societies supports the
Commission’s proposed access to the
NERC data ‘‘because NERC has not
performed, or not disclosed data
analysis when the results might not be
consistent with the interest of NERC’s
industry members in avoiding or
minimizing regulation.’’ 48
21. All other commenters, including
NERC,49 the Trade Associations, and the
Public Power Associations oppose the
Commission’s proposed regulation
requiring NERC to provide the
Commission access to NERC’s TADS,
GADS, and protection system
misoperations databases.
22. The Trade Associations maintain
that the Commission does not need
access to these NERC databases to fulfill
its obligations under FPA section 215,
and that the Commission has multiple
processes it can use to achieve its stated
goals, including events analysis,
reviewing patterns and trends in
compliance and enforcement,
coordination with NERC’s technical
committees, evaluating NERC’s periodic
and special reliability assessments,
periodic review of individual standards,
and discussions on emerging issues at
technical conferences and workshops.50
The Trade Associations argue that these
processes are sufficient to allow the
Commission to obtain information
needed to perform its functions
‘‘without accessing the highly-sensitive,
facility-specific raw data contained in
the databases.’’ 51
The Trade Associations assert that
‘‘access to the raw data contained in the
databases without NERC and industry
analysis will not directly achieve the
Commission’s goals of identifying gaps
in Reliability Standards and in
understanding NERC assessments
because in and of itself the raw data,
without context or NERC technical
analysis, does not shed light on these
47 WIRAB supports the NOPR as a whole.
Resilient Societies, David Bardin, and SGS support
greater access to NERC data, including access by the
Commission, but Resilient Societies and David
Bardin question the need to keep the data nonpublic, as discussed further in Section II.B.2, infra.
48 Resilient Societies Comments at 2.
49 While NERC recognizes the Commission’s
objective of obtaining data needed to fulfill its
oversight responsibilities, NERC asks the
Commission to adopt its alternative proposal,
discussed below in Section II.B.3, under which
NERC would provide the Commission with access
to anonymized TADS, GADS, and protection system
misoperations data. The Northwest Public Power
Association (NWPPA) and Western Electricity
Coordinating Council (WECC) filed comments in
support of NERC’s comments, including NERC’s
proposed alternative to provide access to
anonymized data.
50 See Trade Associations Comments at 5, 6–11.
51 Id. at 6–7.

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matters.’’ 52 While the Trade
Associations thus object to any new
requirement that NERC provide access
to these databases, the Trade
Associations ask that, if the Commission
decides to move forward with such a
requirement, the Commission issue a
modified proposal to better explain
‘‘how direct access to the raw data
collected by NERC in the GADS, TADS,
and misoperations databases will
support [the Commission’s] needs.’’ 53
Further, the Trade Associations and
several other commenters argue that the
NOPR proposal is not ‘‘consistent’’ with
the division of responsibilities between
the ERO and the Commission set forth
in FPA section 215.54 The Trade
Associations assert that ‘‘[t]he
assessment of reliability data in these
databases is squarely within the role of
the ERO, which ‘conduct[s] periodic
assessments of the reliability and
adequacy of the bulk-power system’ ’’
and that ‘‘[t]here is no equivalent role
for the Commission.’’ 55 Similarly, the
Public Power Associations contend that
the NOPR proposal would impinge on
the ERO’s statutory authority to develop
Reliability Standards, and that the FPA
contemplates that the ERO should be
the ‘‘principal agent for standards
development and the assessment of grid
reliability.’’ 56
23. The Public Power Associations
point out that the Commission is to give
due weight to the technical expertise of
the ERO under FPA section 215(d)(2)
and that FPA section 215(g) does not
give the Commission an oversight role
in performing periodic assessments of
the reliability and adequacy of the BulkPower System, and express a general
concern that the NOPR ‘‘suggests a shift
in the balance of responsibilities
between NERC and FERC contemplated
52 Id. at 12–13. See also NERC Comments at 21–
22 (stating that the proposed regulation ‘‘is not
tailored to support the Commission’s objective
under the NOPR, because it will not enable the
Commission to place relevant data in context for
purposes of completing meaningful analyses of the
BPS’’ and that ‘‘the Commission would not be able
to place relevant data in context to derive useful
information, which may result in incorrect or
inappropriate conclusions’’ without engaging in a
collaborative process with NERC.
53 Trade Associations Comments at 12.
54 See e.g., Public Power Associations Comments
at 2 (‘‘the NOPR does not appear tailored to
achieving that goal in a manner consistent with
[FPA section 215’s] statutory scheme.’’).
55 Trade Associations Comments at 16 (citing 16
U.S.C. 824o(g), and quoting Commissioner
LaFleur’s concurring statement to the NOPR noting
that ‘‘it is important that we recognize the
distinction between (the Commission’s) oversight
role and NERC’s primary responsibility to monitor
reliability issues and to propose standards to
address them.’’)
56 Public Power Associations Comments at 7; see
also NERC Comments at 16–20.

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by FPA section 215.’’ 57 Similarly, NERC
maintains that the proposed rule would
‘‘operate in tension’’ with section 215 of
the FPA and would ‘‘chill industry
collaboration with the ERO and
undermine the regulatory framework for
reliability.’’ 58
Commission Determination
24. We find that the Commission’s
authority to require access to NERC’s
TADS, GADS, and protection system
databases is fully consistent with FPA
section 215, and that the NOPR
adequately explained why access to that
data is necessary for the Commission to
carry out its obligations under FPA
section 215.59
25. First, we disagree with arguments
that Commission access to these
databases reflects an unwarranted shift
in the balance of responsibilities
between NERC and the Commission
under section 215 of the FPA.60 To the
contrary, we believe that NERC and
other industry commenters overstate the
impact of the NOPR proposal, which
recognized and acknowledged the
respective roles of the Commission and
NERC under section 215 of the FPA.61
NERC, as the ERO, is responsible for
developing reliability standards to
address reliability issues, whether
identified by NERC, its stakeholders, or
the Commission; the Commission then
reviews and determines whether to
approve those standards. Nothing in the
NOPR or this Final Rule proposes to
change that structure.
26. Rather, as explained in the NOPR
and this Final Rule, the Commission has
determined that access to these
databases will aid the Commission’s
implementation of its statutory
authority, under section 215(d)(5) of the
FPA, to determine whether to require
NERC to develop new or modified
reliability standards. As with prior
instances in which the Commission
acted pursuant to this authority,62 NERC
and its stakeholder process—not the
Commission—would be responsible for
the development of new or modified
standards directed by the Commission.
Therefore, Commission access to these
57 Public Power Associations Comments at 7–8.
The Public Power Associations accordingly ‘‘urge
the Commission to be mindful of the inefficiencies
and potential confusion that would result from a
situation in which NERC and FERC perform the
same analytical roles.’’ Id. at 2.
58 NERC Comments at 6.
59 See NOPR, 152 FERC ¶ 61,208 at PP 17–20.
60 E.g., Public Power Associations Comments at
6–9; Trade Associations Comments at 15–17.
61 NOPR, 152 FERC ¶ 61,208 at P 18.
62 See, e.g., Reliability Standards for Physical
Security Measures, 146 FERC ¶ 61,166 (2014);
Reliability Standards for Geomagnetic
Disturbances, 143 FERC ¶ 61,147 (2013).

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databases does not supplant the role
that NERC and its stakeholder process
have in the standards development
process.
27. We also disagree with assertions
that the requirement in section 215(d)(2)
of the FPA that the Commission give
‘‘due weight to the technical expertise of
the [ERO] with respect to the content of
a proposed standard or modification to
a reliability standard’’ 63 suggests that
the Commission must limit itself to an
oversight role in the standards
development process, and should
broadly defer to NERC and its
stakeholders on matters related to
standards development.64 As a
threshold matter, the Commission did
not rely on FPA section 215(d)(2),
which addresses the Commission’s
authority to approve proposed
Reliability Standards, as its statutory
basis for proposing the new regulation.
Instead the Commission relied on FPA
section 215(d)(5), which vests the
Commission with the authority, ‘‘upon
its own motion or upon complaint, [to]
order the [ERO] to submit to the
Commission a proposed reliability
standard or a modification to a
reliability standard that addresses a
specific matter if the Commission
considers such a new or modified
reliability standard appropriate to carry
out this section.’’ 65 Notably, while
section 215(d)(2) affords ‘‘due weight’’
to the technical expertise of the ERO
concerning the content of the standard,
neither FPA section 215(d)(2) nor FPA
section 215(d)(5) requires the
Commission to afford ‘‘due weight’’ to
the ERO’s selection of which specific
matters warrant a Reliability Standard.
To the contrary, section 215(d)(5)
explicitly authorizes the Commission to
direct the ERO to develop new or
modified Reliability Standards to
address a specific matter if the
Commission deems it ‘‘appropriate’’ to
carry out section 215 of the FPA.66 We
therefore see no inconsistency between
affording ‘‘due weight’’ under section
215(d)(2) and ensuring the
Commission’s ability to effectively
implement its authority under section
215(d)(5).
28. Moreover, contrary to several
commenters’ assertions, nothing in FPA
63 16

U.S.C. 824o(d)(2).
Public Power Associations Comments at

64 E.g.,

7–8.
65 Id.

824o(d)(5).
note that a proposed Reliability Standard
submitted for Commission approval in response to
a directive pursuant to section 215(d)(5) would be
reviewed by the Commission pursuant to section
215(d)(2) of the FPA. Therefore, the ERO’s technical
expertise with respect to the content of the
proposed standard would be afforded due weight.
66 We

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section 215 states or suggests that the
Commission’s authority to direct the
development or amendment of
Reliability Standards is secondary to or
otherwise ‘‘duplicative’’ of the ERO’s
authority to develop Reliability
Standards on its own. NERC’s authority
to develop Reliability Standards under
FPA section 215(d)(2) and the
Commission’s authority to direct NERC
to develop Reliability Standards under
FPA section 215(d)(5) are independent.
Accordingly, the NOPR proposal does
not represent a ‘‘shift’’ in
responsibilities between the
Commission and the ERO, and is
instead part of the necessary input
required by the Commission to carry out
its statutory obligations to determine
whether to direct the development or
modification of a Reliability Standard
under FPA section 215(d)(5).67
29. With respect to how the
Commission would use the data from
the TADS, GADS, and protection system
misoperations databases, including the
Trade Associations’ and others
commenters’ contention that access to
raw data would not be useful in
achieving the Commission’s objectives,
the Commission did not indicate in the
NOPR that it would rely exclusively on
such data in assessing the need for
NERC to develop new or modified
Reliability Standards or to better
understand NERC’s reliability
assessments. Instead, the Commission
has identified data that would assist in
carrying out FPA section 215, and the
Commission intends to analyze data
from the NERC databases in addition to
data from other existing resources (e.g.,
Commission, NERC, and industry
resources), including disturbance
reporting data and event analysis
information, to facilitate the
Commission’s oversight of Bulk-Power
System reliability. With respect to the
Trade Associations’ position that the
Commission has other mechanisms that
are adequate to fulfill its oversight
obligations, we do not agree that the
Commission’s authority is limited to
those mechanisms, particularly where
we find, as here, that access to the
additional information included in the
three NERC databases is needed to meet
our statutory obligations under FPA
section 215.
30. We recognize, however, that we
will be able to better evaluate the
67 As

stated in the NOPR and as previously
explained in Order No. 672, access to relevant
information, such as the information to be obtained
through the new regulation, allows the Commission
to fulfill its statutory obligations under section 215
of the FPA. NOPR, 152 FERC ¶ 61,208 at P 16
(citing Order No. 672, FERC Stats. & Regs. ¶ 31,204,
at P 114).

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usefulness of the data in question as the
Commission gains experience analyzing
those data. Accordingly, we will
continue to assess our need for access to
these NERC databases after we gain
adequate experience with this data
following implementation of the new
regulation.
B. Access to Voluntarily-Provided and
Confidential Information
31. NERC and a number of other
commenters raise concerns about the
impact of the Commission’s access to
the TADS, GADS, and protection system
misoperations databases on the overall
quality of data shared with NERC,
asserting that such access may
negatively impact the industry’s
provision of voluntary data to NERC,
and that it otherwise raises
confidentiality concerns that may not be
easily addressed. The Trade
Associations and other commenters
argue that these concerns should
preclude the Commission’s moving
forward with any requirement to
provide Commission access to the raw
data in the TADS, GADS, and protection
system misoperation databases, while
NERC and other commenters suggest an
alternative approach (discussed in
Section II.B.3, below) that would
provide the Commission with limited
access to the databases while attempting
to more fully protect confidential or
sensitive information provided to NERC
by users, owners, and operators of the
Bulk-Power System.
Information Voluntarily Provided
NOPR
32. In the NOPR, the Commission
proposed to amend its regulations to
require NERC to provide the
Commission with access to the TADS,
GADS and protection system
misoperations databases. The
Commission explained that these
databases are populated with data
collected through mandatory NERC data
requests or Reliability Standards and
that the access proposed in the NOPR
would be limited to U.S. facilities.68
While the NOPR did not explicitly
address whether the Commission’s
access to information in these databases
should exclude data voluntarily
provided to NERC (other than
information regarding non-U.S.
facilities), the Commission’s description
of each database focused on the data
that is required to be provided to NERC
and the justifications NERC has offered
in making reporting of that data
mandatory.69

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68 See
69 Id.

NOPR, 152 FERC ¶ 61,208 at PP 5–14, 15.
PP 5–14, 19.

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Comments
33. NERC contends that the NOPR
proposal could have a negative impact
on the quality and level of data
voluntarily submitted by industry to
NERC (i.e., data that is not currently
required to be submitted to NERC under
mandatory NERC data requests or
Reliability Standards). NERC states that
while the NOPR implies that it affects
only data submitted pursuant to
mandatory data reporting obligations,
NERC is concerned that the proposed
rule instead implicates both mandatory
and voluntary data. Specifically, NERC
states that TADS includes data
voluntarily shared ‘‘by non-U.S.
Transmission Owners and data
voluntarily shared prior to 2015 on Bulk
Electric System transmission elements
under 200 kV.’’ 70 NERC also states that
GADS includes data ‘‘voluntarily
provided from generating units with less
than 20 MW of capacity, data
voluntarily provided prior to 2013 from
generating units with less than 50 MW
of capacity, and data being voluntarily
shared for certain GADS event record
fields.’’ 71 NERC further states that the
protection system misoperations
database includes ‘‘voluntary data
currently shared by non-U.S. entities
and data shared with Regional Entities
prior to EPAct 2005.’’ 72 Ultimately,
NERC is concerned that the proposed
rule requiring Commission access to
these databases could ‘‘return both
NERC and the Commission to a state
where industry only shares reliabilityrelated data in response to mandatory
data requests that provide a narrow
window into the web of complex
information necessary to ensure
reliability.’’ 73
34. The Public Power Associations
and CEA agree with NERC’s concerns
and add that, if the Commission chooses
to adopt the NOPR proposal, the Final
Rule should clarify that the Commission
will only use the accessed data for the
purposes stated in the NOPR and not for
compliance or enforcement purposes.74
CEA also requests that, if the
Commission moves forward with its
proposed regulation, it should modify
the language of the regulation to clarify
70 NERC
71 Id.

Comments at 8–9.
at 9.

72 Id.
73 NERC

Comments at 33.
Power Associations Comments at 11;
CEA Comments at 10–11 (stating that ‘‘the
establishment and administration of [the TADS,
GADS, and protection system misoperations]
databases have not been effectuated with FERC or
other applicable governmental authorities in
mind.’’)
74 Public

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that the Commission’s access to data is
limited to data regarding U.S. facilities.
35. The Trade Associations also agree
with NERC’s concerns and, more
broadly, argue that the NOPR proposal
could ‘‘chill’’ industry informationsharing with NERC generally. The Trade
Associations state that this chilling
effect will be ‘‘more profound’’ if the
Commission should, in the future,
request access to other NERC databases
that rely on voluntary informationsharing (such as NERC’s Electricity
Information Sharing and Analysis
Center), or if the databases ‘‘are used for
non-reliability purposes, such as
economic policy and enforcement
purposes.’’ 75
Commission Determination
36. In the NOPR, the Commission
expressly proposed to exclude from the
database access requirement
information concerning non-U.S.
facilities, and we will maintain that
exclusion in the regulation as adopted.
The Commission agrees with CEA that
this exclusion can be clarified through
a modification to the language of the
proposed regulation, and we,
accordingly, add a new sentence to the
end of the regulation to clarify that
Commission access will be limited to
data regarding U.S. facilities.
37. In addition, while the NOPR did
not explicitly state that the
Commission’s access to data would be
limited to data provided to NERC as part
of a mandatory data request or other
NERC requirement, the Commission
believes that it can achieve its objectives
as stated in the NOPR with access to
mandatorily-provided data only.
Adopting this approach should mitigate
NERC’s and other commenters’ concerns
regarding the impact of the proposed
regulation on the level and quality of
voluntary information-sharing with
NERC and the Regional Entities.
Because the Commission will only be
accessing data that entities are required
to provide to NERC, there should be no
impact on an entity’s willingness to
share additional, voluntary information.
38. While NERC maintains that
entities may be hesitant to provide
voluntary information to NERC or the
Regional Entities because the
Commission could seek to access that
information in the future, we do not
find these arguments to be persuasive,
particularly in light of the Commission’s
decision to exclude voluntarilyprovided information from the scope of
the Final Rule. Moreover, we find that
these concerns do not override our need
for the data contained in NERC’s TADS,

GADS, and protection system
misoperation databases.
39. With respect to requests to limit
our use of the data accessed, the
Commission’s intent in seeking access
to the data is as stated in the NOPR (i.e.,
to assess the potential need for new or
modified Reliability Standards and to
better understand NERC’s periodic
reliability and adequacy assessments).
We believe the data will be most useful
for evaluating overall reliability trends
and identifying specific reliability
concerns. For example, the data could
provide insight into chronic or recurring
system deficiencies, provide a basis for
comparison of the reliability benefits of
different kinds of equipment or system
configurations, or be used to assess the
effectiveness of reliability efforts across
NERC, Regional Entities and industry.
However, the Commission is not
precluded from using the accessed data
for other statutory purposes.
1. Confidentiality
NOPR
40. In the NOPR, the Commission
recognized that its proposal to access
data in the TADS, GADS, and protection
system misoperations databases ‘‘might
raise confidentiality issues,’’ and stated
that if the collected data include
confidential information it would ‘‘take
appropriate steps, as provided for in our
governing statutes and regulations, in
handling such information.’’ 76
Comments
41. NERC and industry commenters
identify maintaining the confidentiality
of TADS, GADS, and protection system
misoperations data accessed by the
Commission as a major concern with the
NOPR proposal. NERC contends that
treating such data as confidential is
appropriate because ‘‘the detailed data
implicated by the NOPR could be
misused to target vulnerabilities in the
[Bulk-Power System].’’ 77 NERC
maintains that while ‘‘data implicated
by the NOPR would normally be eligible
for exemption from [the Freedom of
Information Act (FOIA)] disclosure as
commercial information or sensitive
information in light of security interests,
and protected as Confidential
Information or [Critical Energy
Infrastructure Information (CEII)] under
Commission regulation, eligibility for
exemption from disclosure under FOIA
only partially mitigates risk to
confidentiality,’’ in part because the
Commission has discretion whether to
invoke such an exemption.78 NERC also
76 NOPR,

152 FERC ¶ 61,208 at P 22.
Comments at 10.
78 Id. at 27–28.
77 NERC

75 Trade

Associations Comments at 26.

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asserts that the Commission has
disclosed information in the past that
was eligible for exemption from FOIA,
including information treated as CEII.79
42. Similarly, the Trade Associations
maintain that the regulation, if adopted,
‘‘would create a heightened risk of
improper disclosure of the GADS,
TADS, and misoperations information,
risking harm to the Commission’s
jurisdictional markets and the security
of the nation’s bulk-power system.’’ 80
The Trade Associations describe the
potential harm that could result from
disclosure of the TADS, GADS, and
misoperations data, and maintain that
the heightened risk of disclosure stems
not only from the potential for release
through a FOIA request, but also from
the unintentional release of data
through security breaches.81 As
examples, the Trade Associations state
that data accessed by the Commission
could be accidentally disseminated
through ‘‘misplaced hard drives or
laptops, inadvertently directed emails,
or incorrectly granted information
access,’’ and assert that ‘‘the risk of
information loss also increases with the
number of individuals and
organizations accessing and holding the
data.’’ 82
43. Resilient Societies, by contrast,
objects to the NOPR’s proposal to
preserve the confidentiality of the
accessed data, raising a concern that the
Commission might be restricted ‘‘from
analyzing the NERC data and then using
conclusions developed thereby to
support rulemaking or other public
policy actions.’’ 83 Resilient Societies
accordingly requests that the
Commission adopt the NOPR with
‘‘appropriate additional provisions to
allow public disclosure of modeling
parameters and other conclusions
developed from the TADS and GADS
data.’’ 84
Commission Determination
44. It is clear from the record that
maintaining the confidentiality of data
included in the TADS, GADS, and
protection system operations databases
is a significant concern to NERC and the
entities that provide information to
these databases. The Commission
recognizes that information contained in
the TADS, GADS, and protection system
misoperation databases may be
sensitive, and that such information
may qualify as CEII under the
79 Id.

at 28.
Associations Comments at 18–19.
81 Id. at 20–21.
82 Id. at 21.
83 Resilient Societies Comments at 2.
84 Id. at 3.
80 Trade

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Commission’s regulations. As discussed
below, and to address these concerns,
we will defer the effectiveness of this
Final Rule until the Commission issues
a final rule adopting regulations to
implement its recently-expanded
authority to protect against the
disclosure of ‘‘critical electric
infrastructure information.’’
45. As stated in the NOPR, the
Commission commits that we will take
appropriate steps in handling such
information, in accordance with our
governing statutes and regulations.
Subsequent to the issuance of the
NOPR, the Commission’s authority to
safeguard sensitive information has
been enhanced through the recent
enactment of FPA section 215A.85 FPA
section 215A creates a new statutory
FOIA exemption for information
designated ‘‘critical electric
infrastructure information’’ by the
Commission or the Department of
Energy.86 Concurrently with the
issuance of this Final Rule, the
Commission is issuing a Notice of
Proposed Rulemaking proposing to
amend the Commission’s regulations to
implement the provisions of the FAST
Act pertaining to the designation,
protection and sharing of critical
electric infrastructure information, and
proposing to amend its existing
regulations pertaining to CEII.87
46. We determine that the
Commission’s expanded authority to
safeguard sensitive information
adequately addresses the concerns
raised in the comments regarding
confidentiality. By deferring
Commission access to the databases
until issuance of a final rule
implementing the new ‘‘critical electric
infrastructure information’’ protection,
we will ensure that the Commission has
the full authority of that law at its
disposal to protect against the improper
disclosure of ‘‘critical electric
infrastructure information’’ contained in
the databases.88 We also believe that
85 See Fixing America’s Surface Transportation
(FAST Act), Public Law 114–94, 61003, 129 Stat.
1312 (2015).
86 FPA section 215A(a)(3) defines critical electric
infrastructure information as ‘‘information related
to critical electric infrastructure, or proposed
critical electrical infrastructure, generated by or
provided to the Commission or other Federal
agency, other than classified national security
information, that is designated as critical electric
infrastructure by the Commission or the Secretary
pursuant to subsection (d). Such term includes
information that qualifies as critical energy
infrastructure information under the Commission’s
regulations.’’ Id.
87 Regulations Implementing FAST Act Section
61003—Critical Electric Infrastructure Security and
Amending Critical Energy Infrastructure
Information, 155 FERC ¶ 61,278 (2016).
88 In deferring the effectiveness of this Final Rule,
the Commission is not making a determination that

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this proposal strikes an appropriate
balance between the Commission’s need
to access potentially sensitive
information, and the need to protect that
information against improper
disclosure.89
47. Moreover, whatever potential risks
might remain regarding the
dissemination of GADS, TADS, and
protection system misoperations
database data do not, in our view,
outweigh the need for Commission
access to carry out our statutory
responsibilities under FPA section 215.
Since passage of the EPAct in 2005, the
Commission has generally had to rely
on aggregated and summarized data in
its assessments of the state of reliability
and of the efficacy of current Reliability
Standards. Based on that experience, the
Commission has determined that such
aggregated and summarized data do not
allow the Commission to perform the
reliability analyses necessary to
accomplish the purposes of this rule.
2. NERC Alternative Proposal To
Provide Anonymized Data
NOPR
48. Under the Commission’s proposed
regulation, NERC would be required to
provide the Commission access to the
mandatory TADS, GADS, and protection
system misoperations databases
regarding U.S. facilities, on a non-public
and on-going basis as soon as the
proposed regulation becomes effective.
Comments
49. NERC proposes a two-phase
alternative approach to avoid a number
of the concerns NERC and the industry
have with the NOPR proposal. In the
first phase, NERC would provide
anonymized data to the Commission
‘‘within 90 days of the Commission’s
order on the NOPR.’’ 90 In the second
phase, ‘‘NERC staff would work
collaboratively with Commission staff
through an Information Sharing
Working Group to develop NERCmanaged tools to provide Commission
staff access to anonymized versions of
TADS, GADS, and protection system
misoperations databases.’’ 91 NERC
proposes that the Commission access
GADS data through NERC’s existing
‘‘pc-GAR’’ product, which ‘‘provides
any particular information in the databases is, in
fact, ‘‘critical electric infrastructure information.’’
89 During the intervening period between
issuance of this Final Rule and the Final Rule
becoming effective, Commission staff will work
with NERC to address any technical, procedural, or
confidentiality issues to ensure that Commission
staff can promptly access the databases upon the
Final Rule becoming effective.
90 NERC Comments at 4.
91 Id. at 4–5.

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users with access to anonymized
reliability information from the over
5,000 generating units reporting under
GADS, and allows users to select from
hundreds of data combinations,’’ and
provides users the ability to generate
reports based on region, generator type,
and fuel type.92 NERC proposes to give
the Commission access to pc-GAR and
to develop ‘‘similar tools’’ for TADS and
protection system misoperations data.93
50. Several industry commenters
support NERC’s alternative approach,
including CEA, KCP&L, NWPPA, and
WECC.94 While the Public Power
Associations also support NERC’s
alternative proposal, they recommend
that the Commission adopt NERC’s
alternative approach as an intermediate
step, and then revisit the effectiveness
of NERC’s approach after a reasonable
period for testing the efficacy of using
the anonymized data (e.g., after one or
two years).
51. Resilient Societies opposes
NERC’s proposed alternative approach
because it contends that ‘‘[o]nly by
knowing the location of TADS and
GADS events, and by cross-referencing
to network configuration, will analysts
at FERC be able to fully understand
reasons for equipment failure, system
misoperations, or grid outages.’’ 95
Commission Determination
52. We are not persuaded that the
anonymized data, in the form offered by
NERC, would provide the Commission
with sufficiently useable information to
achieve its objectives as stated in the
NOPR. Were NERC to fully anonymize
the databases, it would have to mask not
only fields that directly identify entities
(i.e., entity name and/or NERC
Compliance Registry (NCR) number),
but would also have to mask every field
that could contain information which
could allow identification of a particular
entity (e.g., where the location or
characteristics of a particular facility
could lead to identification of the
reporting entity). While we agree that
the ‘‘attributable’’ information in these
data fields is sensitive and could be
entitled to non-public treatment by the
Commission (as discussed above in
Section II.B.2), we believe that masking
all fields which may contain such data
before providing it to the Commission
would severely constrain the value of
92 Id. at 11. The pc-GAR is a family of products
that provides the automated personal computer
(pc-) version of NERC’s Generating Availability
Report (GAR). See http://www.nerc.com/pa/RAPA/
gads/Pages/pc-GAR.aspx.
93 Id.
94 See, e.g., CEA Comments at 15, WECC
Comments at 2.
95 Resilient Societies Comments at 2.

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the Commission’s access to the
databases. This masking would likely
preclude Commission access to
information such as the affected facility
names and locations, affected
equipment names, which generation or
transmission facilities were tripped as a
result of a misoperation, the event
description, and the corrective actions
taken following a misoperation.
53. The masking of such information
would limit the Commission’s ability,
inter alia, to identify reliability
problems in specific geographic areas,
or for specific failure modes or types of
equipment. The accessible information
would only allow the Commission to
achieve a broad and generalized
understanding of Bulk-Power System
risks, and not the more detailed and
meaningful analysis that the
Commission seeks.
54. In addition, masking of
information used to locate or identify
outages of specific transmission or
generation facilities would limit the
Commission’s ability to identify affected
regional or sub-regional vulnerabilities,
and accordingly limit its ability to make
recommendations regarding the efficacy
of existing regional Reliability
Standards or the need for new or
modified regional Reliability Standards.
This aggregation or masking of
information would also limit the
Commission’s ability to understand the
causes of cascading failures where
multiple outages occur in sequence and
in close proximity or match the
databases with other sources of
information such as disturbance
reporting data currently provided by
NERC. For all of these reasons, we find
that anonymized data taken from the
databases would not allow the
Commission to achieve the objectives
set out in the NOPR. Accordingly, we
find NERC’s proposal not to be a viable
alternative to the NOPR proposal.
III. Information Collection Statement
55. The following collection of
information contained in this Final Rule
is subject to review by the Office of
Management and Budget (OMB) under
section 3507(d) of the Paperwork
Reduction Act of 1995 (PRA).96 OMB’s
regulations require approval of certain
information collection requirements
imposed by agency rules.97 Upon
approval of a collection of information,
OMB will assign an OMB control
number and expiration date.
Respondents subject to the filing
requirements of this rule will not be
penalized for failing to respond to this

collection of information unless the
collection of information displays a
valid OMB control number.
NOPR
56. In the NOPR, the Commission
explained that the proposed regulation
would make TADS, GADS, and
protection system misoperations data
regarding U.S. facilities, currently
collected by NERC, available to the
Commission and its staff on a nonpublic and ongoing basis. The
Commission stated that the new
regulation would not require NERC to
collect new information, compile
information into any kind of report, or
reformulate its raw data. The
Commission also stated its belief that it
could be relatively straightforward for
NERC to provide the Commission, and
Commission staff, with access to TADS,
GADS, and protection systems
misoperations data, and noted that
various entities currently have access to
these data via an existing web interface.
Accordingly, the Commission estimated
that the one-time burden associated
with compliance with the proposed rule
would be de minimis, and would be
limited to NERC reviewing the
Commission’s proposed regulation and
providing the Commission and its staff
with access to the existing TADS,
GADS, and protection system
misoperations databases.
57. The Commission solicited
comments on the need for the required
information, whether the information
will have practical utility, the accuracy
of the burden estimates, ways to
enhance the quality, utility, and clarity
of the information to be collected or
retained, and any suggested methods for
minimizing respondents’ burden,
including the use of automated
information techniques. Specifically,
the Commission asked that any revised
burden or cost estimates submitted by
commenters be supported by sufficient
detail to understand how the estimates
are generated.
Comments
58. The Trade Associations argue that
the Commission’s burden estimate as
stated in the NOPR is deficient because
it overlooks the burden on users, owner,
and operators of the Bulk-Power System
of providing the underlying data to
NERC.98 The Trade Associations
maintain that by ignoring the burdens
imposed as a result of NERC’s
underlying data collection, the
Commission is effectively avoiding
scrutiny by OMB. In addition, the Trade
Associations assert that the information-

96 44

U.S.C. 3507(d).
97 5 CFR 1320.11.

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collecting activities associated with the
new regulation are not covered under
OMB’s FERC–725 collection
authorization because they do not relate
to operational information collected
from Regional Entities. Accordingly, the
Trade Associations argue that a new
OMB information collection
authorization is required.
Commission Determination
59. For the reasons discussed below,
the Commission adopts the Information
Collection Statement included in the
NOPR (i.e., the Commission estimates
that there will be a de minimis burden
associated with the information
collection requirements under the new
regulation). Essentially, the only burden
the new regulation imposes will be on
NERC, and the only action required is
for NERC to provide access to its
existing TADS, GADS, and protection
misoperation databases. While NERC
may have to develop limited screens to
ensure that information related to nonU.S. facilities or information voluntarily
provided has been excluded, we
understand that NERC currently has the
capability to provide access to certain
data within its databases while
screening other data or data fields
(similar to the access NERC provides
using its pc-GAR product).
60. With respect to the Trade
Associations’ assertion that the NOPR’s
Information Collection analysis
overlooks the burden imposed on
registered entities by NERC’s underlying
reporting requirements, we do not agree
that the Paperwork Reduction Act
requires an examination of underlying
information collection burdens that
exist independent of the proposed
regulation. In this case, the burden on
the entities required to report data on
U.S. facilities to NERC is already in
place and remains mandatory and
unchanged regardless of whether the
Commission adopts the regulation or
not.
61. Furthermore, contrary to the Trade
Associations’ assertions, OMB has
reviewed the information collection
burden associated with the underlying
obligation on users, owners, and
operators of the Bulk-Power System to
report misoperations data to NERC. In
approving earlier versions of the
Reliability Standard that first imposed
such a reporting obligation (i.e., PRC–
004), the Commission took into account
the estimated burden imposed on
registered entities to report the
misoperations data to NERC.99 The
99 See NERC Reliability Standard PRC–004–2a
(unchanged in Order No. 785 in RM12–16) and for
PRC–004–2.1a (which replaced Reliability Standard

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underlying misoperations reporting
obligation was subsequently removed
from Reliability Standard PRC–004–2.1
and moved into a separate data request
pursuant to Section 1600 of NERC’s
Rules of Procedure. However, the
underlying reporting burden to NERC
was still reflected in the OMB burden
estimate,100 and is currently included in
the FERC–725 information collection
(OMB Control No. 1902–0255, recently
approved by OMB on February 26,
2016).
62. Finally, the Trade Associations are
incorrect with respect to the scope of
existing FERC–725 (Certification of
Electric Reliability Organization;
Procedures for Electric Reliability
Standards), which covers the ERO’s
obligation to provide data to the
Commission. FERC–725 includes
information required by the
Commission to implement the statutory
provisions of section 215 of the FPA,
and includes the burden, reporting and
recordkeeping requirements associated
with: (a) Self Assessment and ERO
Application, (b) Reliability
Assessments, (c) Reliability Standards
Development, (d) Reliability
Compliance, (e) Stakeholder Survey,
and (f) Other Reporting.
63. As a result, this Final Rule will be
submitted to OMB for review and
approval as a ‘‘no material or
nonsubstantive change to a currently
approved collection.’’
Title: FERC–725, Certification of
Electric Reliability Organization;
Procedures for Electric Reliability
Standards.
Action: Revision of currently
approved collection of information.
OMB Control No.: 1902–0225.
Respondents for this Rulemaking:
Electric Reliability Organization.
Frequency of Information: Initial
implementation by the ERO to provide
Commission access to TADS, GADS,
and misoperations databases.
Internal review: The Commission has
reviewed the proposed regulation and
has determined that the proposed
regulation is necessary to ensure the
reliability and integrity of the nation’s
Bulk-Power System.
64. Interested persons may obtain
information on the reporting
requirements by contacting the Federal
PRC–004–2a), covered under FERC–725A (OMB
Control No. 1902–0244); Reliability Standard PRC–
004–2.1(i)a in Docket No. RM12–16, covered by
FERC–725M (OMB Control No. 1902–0263);
Reliability Standard PRC–004–3 (in Docket No.
RD14–14), covered by FERC–725G1 (OMB Control
No. 1902–0284); and Reliability Standard PRC–004–
4 (in Docket No. RD15–3) (submitted to OMB for
information only).
100 See North American Electric Reliability Corp.,
151 FERC ¶ 61,129, at P 22 (2015).

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Energy Regulatory Commission, Office
of the Executive Director, 888 First
Street NE., Washington, DC 20426
[Attention: Ellen Brown, email:
DataClearance@ferc.gov, phone: (202)
502–8663, fax: (202) 273–0873].
65. Comments concerning the
information collections approved in this
Final Rule and the associated burden
estimates, should be sent to the
Commission in this docket and may also
be sent to the Office of Management and
Budget, Office of Information and
Regulatory Affairs [Attention: Desk
Officer for the Federal Energy
Regulatory Commission, phone: (202)
395–0710, fax: (202) 395–7285]. For
security reasons, comments should be
sent by email to OMB at the following
email address: oira_submission@
omb.eop.gov. Please reference the
docket number of this Final Rule
(Docket No. RM15–25–000) and OMB
Control No. 1902–0225 in your
submission.
IV. Environmental Analysis
66. 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.101 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.102 The
actions here fall within this categorical
exclusion in the Commission’s
regulations.
V. Regulatory Flexibility Act
67. The Regulatory Flexibility Act of
1980 (RFA) 103 generally requires a
description and analysis of final rules
that will have significant economic
impact on a substantial number of small
entities. The Small Business
Administration (SBA) revised its size
standard (effective January 22, 2014) for
electric utilities from a standard based
on megawatt hours to a standard based
on the number of employees, including
affiliates.104
68. The Commission is amending its
regulations to require only the ERO (i.e.,
NERC) to provide the Commission, and
101 Regulations Implementing the National
Environmental Policy Act of 1969, Order No. 486,
52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs.
¶ 30,783 (1987).
102 18 CFR 380.4(a)(2)(ii).
103 5 U.S.C. 601–612.
104 SBA Final Rule on ‘‘Small Business Size
Standards: Utilities,’’ 78 FR 77,343 (Dec. 23, 2013).

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Commission staff, with access, on a nonpublic and ongoing basis, to the existing
TADS, GADS, and protections system
misoperations databases. As discussed
above, we estimate that the costs to the
ERO associated with this Final Rule will
be de minimis. Accordingly, the
Commission certifies that the new
regulation will not have a significant
economic impact on a substantial
number of small entities, and no
regulatory flexibility analysis is
required.
VI. Document Availability
69. In addition to publishing the full
text of this document in the Federal
Register, the Commission provides all
interested persons an opportunity to
view and/or print the contents of this
document via the Internet through the
Commission’s Home Page (http://
www.ferc.gov) and in the Commission’s
Public Reference Room during normal
business hours (8:30 a.m. to 5:00 p.m.
Eastern time) at 888 First Street NE.,
Room 2A, Washington, DC 20426.
70. From the Commission’s Home
Page on the Internet, this information is
available on eLibrary. The full text of
this document is available on eLibrary
in PDF and Microsoft Word format for
viewing, printing, and/or downloading.
To access this document in eLibrary,
type the docket number excluding the
last three digits of this document in the
docket number field.
71. User assistance is available for
eLibrary and the Commission Web site
during normal business hours from
FERC Online Support at 202–502–6652
(toll free at 1–866–208–3676) or email at
ferconlinesupport@ferc.gov, or the
Public Reference Room at (202) 502–
8371, TTY (202) 502–8659. Email the
Public Reference Room at
public.referenceroom@ferc.gov.
VII. Effective Date and Congressional
Notification
72. These regulations are effective
July 12, 2016. The Commission has
determined, with the concurrence of the
Administrator of the Office of
Information and Regulatory Affairs of
OMB, that this rule is not a ‘‘major rule’’
as defined in section 351 of the Small
Business Regulatory Enforcement
Fairness Act of 1996. The Commission
will submit the Final Rule to both
houses of Congress and to the General
Accountability Office.
By the Commission.
Issued: June 16, 2016.
Kimberly D. Bose,
Secretary.

In consideration of the foregoing, the
Commission amends Chapter I, Title 18,

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part 39 of the Code of Federal
Regulations, as follows:

DEPARTMENT OF THE TREASURY
Internal Revenue Service

PART 39—RULES CONCERNING
CERTIFICATION OF THE ELECTRIC
RELIABILITY ORGANIZATION; AND
PROCEDURES FOR THE
ESTABLISHMENT, APPROVAL, AND
ENFORCEMENT OF ELECTRIC
RELIABILITY STANDARDS
1. The authority citation for part 39
continues to read as follows:

■

[TD 9775]
RIN 1545–BN26

Requirement To Notify the IRS of Intent
To Operate as a Section 501(c)(4)
Organization; Final and Temporary
Regulations

2. Amend § 39.11 to add paragraph (c)
as follows:

Internal Revenue Service (IRS),
Treasury.
ACTION: Final and temporary
regulations.

§ 39.11

SUMMARY:

AGENCY:

Authority: 16 U.S.C. 824o.
■

Reliability reports.

*

*
*
*
*
(c) The Electric Reliability
Organization shall make available to the
Commission, on a non-public and
ongoing basis, access to the
Transmission Availability Data System,
Generator Availability Data System, and
protection system misoperations
databases, or any successor databases
thereto. Such access will be limited to:
(1) Data regarding U.S. facilities; and
(2) Data that is required to be
provided to the ERO.
The following appendix will not
appear in the Code of Federal
Regulations.
Appendix
Commenters

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26 CFR Parts 1 and 602

American Public Power Association, Large
Public Power Council, and the
Transmission Access Policy Study Group
(collectively, Public Power Associations)
Canadian Electricity Association (CEA)
David Jonas Bardin (David Bardin)
Edison Electric Institute, Electric Power
Supply Association, Electricity Consumers
Resource Council, and the National Rural
Electric Cooperative Association
(collectively, Trade Associations)
Foundation for Resilient Societies (Resilient
Societies)
Kansas City Power & Light Company
(KCP&L)
North American Electric Reliability
Corporation (NERC)
Northwest Public Power Association
(NWPPA)
Rio Tinto Alcan Inc. (RTA)
SGS Statistical Services (SGS)
Tri-State Generation and Transmission
Association, Inc. (Tri-State)
Western Electric Coordinating Council
(WECC)
Western Interconnection Regional Advisory
Board (WIRAB)
[FR Doc. 2016–14760 Filed 7–11–16; 8:45 am]
BILLING CODE 6717–01–P

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This document contains final
and temporary regulations relating to
the requirement, added by the
Protecting Americans from Tax Hikes
Act of 2015, that organizations must
notify the IRS of their intent to operate
under section 501(c)(4) of the Internal
Revenue Code (Code). The regulations
affect organizations described in section
501(c)(4) (section 501(c)(4)
organizations) that are organized after
December 18, 2015, and certain section
501(c)(4) organizations existing on that
date. The text of the temporary
regulations serves as the text of the
proposed regulations set forth in the
related notice of proposed rulemaking
(REG–101689–16) published in the
Proposed Rules section in this issue of
the Federal Register.
DATES:
Effective Date: These regulations are
effective on July 8, 2016.
Applicability Date: For date of
applicability, see § 1.506–1T(f).
FOR FURTHER INFORMATION CONTACT:
Chelsea Rubin at (202) 317–5800 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collection of information
contained in these final and temporary
regulations will be reviewed and,
pending receipt and evaluation of
public comments, approved by the
Office of Management and Budget under
control number 1545–2268.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless the collection of information
displays a valid control number.
For further information concerning
this collection of information, please
refer to the preamble to the crossreferencing notice of proposed
rulemaking published in the Proposed
Rules section of this issue of the Federal
Register.

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Books and records relating to a
collection of information must be
retained as long as their contents may
become material in the administration
of any internal revenue law. Generally,
tax returns and tax return information
are confidential, as required by 26
U.S.C. 6103.
Background
This Treasury decision contains
temporary regulations under section 506
of the Code. Section 405 of the
Protecting Americans from Tax Hikes
Act of 2015 (Pub. L. 114–113, div. Q)
(the PATH Act), enacted on December
18, 2015, added section 506 to the Code
and amended sections 6033 and 6652.
Because the statutory provisions were
effective upon enactment and certain
section 501(c)(4) organizations must
notify the IRS within 60 days of
formation, these temporary regulations
are necessary to provide prompt
guidance to enable section 501(c)(4)
organizations to satisfy the new
statutory notification requirement and
provide appropriate transition relief.
1. Section 501(c)(4) Organizations
Section 501(a) of the Code generally
provides that an organization described
in section 501(c) is exempt from federal
income tax. Section 501(c)(4) describes
certain civic leagues or organizations
operated exclusively for the promotion
of social welfare and certain local
associations of employees. An
organization is described in section
501(c)(4) and exempt from tax under
section 501(a) if it satisfies the
requirements applicable to such status.
Subject to certain exceptions, section
6033, in part, requires organizations
exempt from taxation under section
501(a) to file annual information returns
or notices, as applicable.
Although an organization may apply
to the IRS for recognition that the
organization qualifies for tax-exempt
status under section 501(c)(4), there is
no requirement to do so (except as
provided in section 6033(j)(2), which
requires organizations that lose taxexempt status for failure to file required
annual information returns or notices
and want to regain tax-exempt status to
apply to obtain reinstatement of such
status). Accordingly, a section 501(c)(4)
organization that files annual
information returns or notices, as
required under section 6033, need not
seek an IRS determination of its
qualification for tax-exempt status in
order to be described in and operate as
a section 501(c)(4) organization.

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