[Federal Register: August 13, 2008 (Volume 73, Number 157)]
[Proposed Rules]
[Page 47101-47103]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13au08-21]
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Proposed Rules
Federal Register
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This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Part 1730
RIN 0572-AC07
Interconnection of Distributed Resources
AGENCY: Rural Utilities Service, USDA.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Rural Utilities Service, an agency delivering the U.S.
Department of Agriculture's Rural Development Utilities Programs (Rural
Development and/or Agency) proposes to require that Rural Development
Electric Program borrowers will be responsible for establishing and
maintaining a written standard policy relating to the Interconnection
of Distributed Resources (IDR). The intended effect is that owners of
distributed resources know what they have to do to connect their
facilities to the electric power systems of borrower electric
cooperatives.
DATES: Written comments must be received by Rural Development Utilities
Programs no later than October 14, 2008.
ADDRESSES: Submit comments by either of the following methods: Federal
eRulemaking Portal: Go to http://www.regulations.gov and, in the lower
``Search Regulations and Federal Actions'' box, select ``Rural
Utilities Service'' from the agency dropdown menu, then click on
``Submit.'' In the Docket ID column, select RUS-08-Electric-0001 to
submit or view public comments and to view supporting and related
materials available electronically. Information on using
Regulations.gov, including instructions for accessing documents,
submitting comments, and viewing the docket after the close of the
comment period, is available through the site's ``User Tips'' link.
Postal Mail/Commercial Delivery: Please send your comment addressed
to Michele Brooks, Director, Program Development and Regulatory
Analysis, USDA Rural Development, 1400 Independence Avenue, SW., STOP
1522, Room 5159, Washington, DC 20250-1522. Please state that your
comment refers to Docket No. RUS-06-Agency-0052.
Other Information: Additional information about Rural Development
and its programs is available on the Internet at http://
www.rurdev.usda.gov/index.html.
FOR FURTHER INFORMATION CONTACT: Georg Shultz, USDA--Rural Development
Utilities Programs, 1400 Independence Avenue, SW., Washington, DC
20250-1569, telephone (202) 720-1900 or e-mail to
Georg.Shultz@wdc.usda.gov.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This proposed rule has been determined to be not significant for
purposes of Executive Order 12866 and, therefore, has not been reviewed
by the Office of Management and Budget.
Catalog of Federal Domestic Assistance
The program described by this proposed rule is listed in the
Catalog of Federal Domestic Assistance Programs under number 10.850,
Rural Electrification Loans and Loan Guarantees. This catalog is
available on a subscription basis from the Superintendent of Documents,
the United States Government Printing Office, Washington, DC 20402-9325
or at http://www.cfda.gov.
Executive Order 12372
This proposed rule is excluded from the scope of Executive Order
12372, Intergovernmental Consultation, which may require consultation
with State and local officials. See the final rule related notice
entitled, ``Department Programs and Activities Excluded from Executive
Order 12372'' (50 FR 47034).
Information Collection and Recordkeeping Requirements
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
chapter 35), comments are invited on this information collection for
which the Agency intends to request approval from the Office of
Management and Budget (OMB).
Comments on this notice must be received by October 14, 2008.
Comments are invited on (a) whether the collection of information
is necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility; (b) the
accuracy of the agency's estimate of burden including the validity of
the methodology and assumption used; (c) ways to enhance the quality,
utility and clarity of the information to be collected; and (d) ways to
minimize the burden of the collection of information on those who are
to respond, including through the use of appropriate automated,
electronic, mechanical, or other technological collection techniques on
other forms or information technology.
Comments may be sent to Michele Brooks, Director, Program
Development and Regulatory Analysis, Rural Development, U.S. Department
of Agriculture, 1400 Independence Avenue, SW., Stop 1522, Room 5166
South Building, Washington, DC 20250.
Title: 7 CFR part 1730, Interconnection of Distributed Resources.
OMB Control No.: 0572-XXXX.
Type of Request: New information collection.
Abstract: The Agency manages loan programs in accordance with the
Rural Electrification Act of 1936, 7 U.S.C. 901 et seq., as amended (RE
Act).
Distributed resources have become an important addition to the
nation's energy supply. However often times the owners of distributed
resources have a difficult time connecting their distributed resources
to the electric power system of rural electric cooperatives. This
regulation will facilitate the Interconnection of Distributed Resources
(IDR) by requiring that borrower electric cooperatives publish their
requirements for this interconnection in a written document that is
available to the public.
Title 7 CFR part 1730 Electric System and Maintenance, subpart C
Interconnection of Distributed Resources, establishes a requirement for
borrowers to develop a written standard policy relating to the IDR
having an installed capacity of not more than 10 megavolt amperes (MVA)
at the point of common coupling.
Estimate of Burden: Public reporting burden for this collection of
information
[[Page 47102]]
is estimated to average \1/2\ hour per response.
Respondents: Not for profit organizations, business or other for
profit.
Estimated Number of Respondents: 150.
Estimated Number of Responses per Respondent: 1.
Estimated Annual Responses: 150.
Estimated Total Annual Burden on Respondents: 75 hours.
Copies of this information collection can be obtained from Joyce
McNeil, Program Development and Regulatory Analysis. Telephone: 202
720-0812.
All responses to this information collection and recordkeeping
notice will be summarized and included in the request for OMB approval.
All comments will also become a matter of public record.
National Environmental Policy Act Certification
The Agency has determined that this proposed rule will not
significantly affect the quality of the human environment as defined by
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
Therefore, this action does not require an environmental impact
statement or assessment.
Regulatory Flexibility Act Certification
It has been determined that the Regulatory Flexibility Act is not
applicable to this proposed rule since the Agency is not required by 5
U.S.C. 551 et seq. or any other provision of law to publish a notice of
proposed rulemaking with respect to the subject matter of this rule.
Unfunded Mandates
This rule contains no Federal mandates (under the regulatory
provisions of Title II of the Unfunded Mandates Reform Act of 1995) for
State, local, and tribal governments for the private sector. Thus, this
rule is not subject to the requirements of section 202 and 205 of the
Unfunded Mandates Reform Act of 1995.
Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. The Agency has determined that this proposed rule
meets the applicable standards in section 3 of the Executive Order.
Background
Rural Development Utilities Programs proposes to amend 7 CFR part
1730 by adding a subpart C titled ``Interconnection of Distributed
Resources''. This rule will require that Rural Development Electric
Program borrowers shall be responsible for establishing and maintaining
a written standard policy relating to the interconnection of
distributed resources (IDR). This rule will allow owners of distributed
resources to ascertain the requirements of borrower electric
cooperatives regarding connection to the electric cooperative
facilities by referring to written borrower standards for IDR.
This proposed rule is needed because currently the owners of
distributed resources often do not know what they must do to connect
their facilities to the electric power system of a borrower electric
cooperative. This proposed rule would benefit the owners of distributed
resources. The purpose of this action is to allow the owners of
distributed resources to know exactly what they must do to connect
their facilities with the electric power systems of borrower electric
cooperatives.
The United States electric power system (electric power system)
consists of three distinct components: Generation facilities,
transmission facilities (including bulk transmission and
subtransmission facilities) and distribution facilities. Specific
definitions of generation, transmission and distribution facilities are
located at 7 CFR 1710.2.
Rural Development Electric Program borrowers have always had a
legal obligation to the Agency to maintain their respective systems. In
satisfying these legal obligations, a borrower furthers the purposes of
the Rural Electrification Act of 1936, as amended (7 U.S.C. 901 et
seq.) while also preserving the value of its system to serve as
collateral for repayment of the Agency assistance. Generally speaking,
the scope of these legal obligations is frequently measured against
prudent utility practices (PUP). Thus, it is entirely appropriate for
the Agency to expect that its borrowers will be aware of and follow
developing IDR standards using PUP. Voluntary standards using PUP are
emerging within the private sector and the requirements of this
proposed rule are consistent with those voluntary standards.
This rule refers to an international standard published by the
Institute of Electrical and Electronic Engineers (IEEE). It also allows
individual borrowers to create their own additional technical
requirements to meet local conditions that are consistent with PUP. The
regulation applies to IDR having an installed capacity of not more than
10 megavolt amperes (MVA). This specific value was chosen to correspond
with the international standard published by IEEE.
This regulation requires liability insurance for distributed
resource facilities that are interconnected to borrowers' electric
systems. Current federal regulations do not specify the amount of
liability insurance required except when the distributed resource
facility is owned by a Rural Development Electric Program borrower,
contractor, engineer, or architect. Moreover, the Agency expects that
borrower ownership of distributed resources will be uncommon. Comments
are specifically requested on this issue, in particular, whether the
regulation should specify a minimum amount of liability insurance, and
if so, what minimum amount should be required.
List of Subjects
Electric power; Loan program--energy; Reporting and recordkeeping
requirements; Rural areas.
For reasons set forth in the preamble, the Agency proposes to amend
7 CFR, Chapter XVII, part 1730 by adding subpart C to read as follows:
PART 1730--ELECTRIC SYSTEM OPERATIONS AND MAINTENANCE
1. The authority citation for part 1730 continues to read as
follows:
Authority: 7 U.S.C. 901 et seq., 1921 et seq., 6941 et seq.
2. Add Subpart C to read as follows:
Subpart C--Interconnection of Distributed Resources
Sec.
1730.60 General.
1730.61 Policy.
1730.62 Definitions.
1730.63 IDR policy criteria.
1730.64 Power purchase agreements.
1730.65 Effective dates.
1730.66 Administrative waiver.
1730.67-99 [Reserved]
Subpart C--Interconnection of Distributed Resources
Sec. 1730.60 General.
Each electric program distribution borrower (as defined in Sec.
1710.2) is responsible for establishing and maintaining a written
standard policy relating to the Interconnection of Distributed
Resources (IDR) having an installed capacity of not more than 10
megavolt amperes (MVA) at the point of common coupling.
Sec. 1730.61 Policy.
The Distributed Resource facility must not cause significant
degradation
[[Page 47103]]
of the safety, power quality, or reliability on the borrower's electric
power system or other electric power systems interconnected to the
borrower's electric power system. The Agency encourages borrowers to
consider model policy templates developed by knowledgeable and expert
institutions, such as, but not limited to, the National Association of
Regulatory Utility Commissioners, the Federal Energy Regulatory
Commission and the National Rural Electric Cooperative Association. The
Agency encourages all related electric borrowers to cooperate in the
development of a common Distributed Resource policy.
Sec. 1730.62 Definitions.
``Distributed Resources'' as used in this subpart means sources of
electric power that are not directly connected to a bulk power
transmission system, having an installed capacity of not more than 10
MVA, connected to the borrower's electric power system through a point
of common coupling. Distributed resources include both generators and
energy storage technologies.
``Responsible Party'' as used in this subpart means the owner,
operator or any other person or entity that is accountable to the
borrower under the borrower's interconnection policy for Distributed
Resources.
Sec. 1730.63 IDR policy criteria.
(a) General.
(1) The borrower's IDR policy and procedures shall be readily
available to the public and include, but not limited to, a standard
application, application process, application fees, and agreement.
(2) All costs to be recovered from the applicant regarding the
application process or the actual interconnection are to be clearly
explained to the applicant and authorized by the applicant prior to the
borrower incurring these costs. The borrower may require separate
nonrefundable deposits sufficient to insure serious intent by the
applicant prior to proceeding either with the application or actual
interconnection process.
(3) IDR policies must be approved by the borrower's Board of
Directors.
(4) The borrower may establish a new rate classification for
customers with Distributed Resources.
(5) IDR policies must provide for reconsideration and updates every
three years or more frequently as circumstances warrant.
(b) Technical requirements.
(1) IDR policies must be consistent with prudent electric utility
practice.
(2) IDR policies must incorporate the standard 1547 as promulgated
and amended by the Institute of Electrical and Electronic Engineers
(IEEE). The title of IEEE Standard 1547 is ``IEEE Standard for
Interconnecting Distributed Resources with Electric Power Systems''.
You may obtain a copy of IEEE Standard 1547 from: IEEE, 3 Park Avenue,
New York, NY 10016-5997.
(3) IDR policies must provide for appropriate electric power system
disconnect facilities, as determined by the borrower, which shall
include a lockable disconnect, a visible open, and fusing, that are
readily accessible to and operable by authorized personnel at all
times.
(4) IDR policies must provide for borrower access to the
Distributed Resources facility during normal business hours and all
emergency situations.
(c) Responsible party obligations. IDR policies must provide for
appropriate Responsible Parties to assume the following risks and
responsibilities:
(1) A Responsible Party must agree to maintain appropriate
liability insurance as outlined in the borrower's interconnection
policy.
(2) A Responsible Party must be responsible for the Distributed
Resources compliance with all national, State, local government
requirements and electric utility standards for the safety of the
public and personnel responsible for utility electric power system
operations, maintenance and repair.
(3) A Responsible Party must be responsible for the safe and
effective operation and maintenance of the facility.
(4) Only Responsible Parties may apply for interconnection and the
Responsible Party must demonstrate the financial and managerial
capability to develop, construct and operate the distributed resources.
Sec. 1730.64 Power purchase agreements.
Nothing in this subpart requires the borrower to enter into
purchase power arrangements with the owner of the Distributed
Resources.
Sec. 1730.65 Effective dates.
(a) Each electric program borrower with an approved electric
program loan as of [DATE OF PUBLICATION OF THE FINAL RULE] shall have
an IDR policy board approved and in effect no later than [DATE 2 YEARS
FROM DATE OF PUBLICATION OF THE FINAL RULE].
(b) An electric program borrower that submits an application to the
Agency for financial assistance on or after [DATE 2 YEARS FROM DATE OF
PUBLICATION OF THE FINAL RULE] shall include with its application
package a letter of certification executed by the General Manager that
the borrower meets the requirements of this subpart.
Sec. 1730.66 Administrative waiver.
The Administrator may waive in all or part, for good cause, the
requirements and procedures of this subpart.
Sec. Sec. 1730.67-1730.99 [Reserved]
Dated: July 11, 2008.
James M. Andrew,
Administrator, Rural Utilities Service.
[FR Doc. E8-18800 Filed 8-12-08; 8:45 am]
BILLING CODE 3410-15-P