[Federal Register Volume 85, Number 207 (Monday, October 26, 2020)]
[Proposed Rules]
[Pages 67699-67704]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-23282]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 292
[Docket Nos. RM21-2-000 and RM20-20-000]
Fuel Cell Thermal Energy Output; Bloom Energy Corporation
AGENCY: Federal Energy Regulatory Commission, Department of Energy.
ACTION: Notice of proposed rulemaking.
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SUMMARY: In this Notice of Proposed Rulemaking, the Federal Energy
Regulatory Commission proposes to amend the definition of useful
thermal energy output in its regulations implementing the Public
Utility Regulatory Policies Act of 1978 to recognize the technical
evolution of cogeneration.
DATES: Comments are due November 25, 2020.
ADDRESSES: Comments, identified by docket number, may be filed
electronically at http://www.ferc.gov in acceptable native applications
and print-to-PDF, but not in scanned or picture format. For those
unable to file electronically, comments may be filed by mail or hand-
delivery to: Federal Energy Regulatory Commission, Secretary of the
Commission, 888 First Street NE, Washington, DC 20426. The Comment
Procedures Section of this document contains more detailed filing
procedures.
FOR FURTHER INFORMATION CONTACT:
Lawrence R. Greenfield (Legal Information), Office of the General
Counsel, Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 20426, (202) 502-6415, lawrence.greenfield@ferc.gov
Helen Shepherd (Technical Information), Office of Energy Market
Regulation, Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 20426, (202) 502-6176, helen.shepherd@ferc.gov
Thomas Dautel (Technical Information), Office of Energy Policy and
Innovation, Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 20426, (202) 502-6196, thomas.dautel@ferc.gov
SUPPLEMENTARY INFORMATION:
I. Introduction
1. In this Notice of Proposed Rulemaking (NOPR), the Federal Energy
Regulatory Commission (Commission) proposes to revise its regulations
(PURPA Regulations) \1\ implementing sections 201 and 210 of the Public
Utility Regulatory Policies Act of 1978 (PURPA) \2\ in light of the
development of Solid Oxide Fuel Cell systems with integrated natural
gas reformation equipment as a technical evolution of cogeneration and
in response to a petition for rulemaking submitted by Bloom Energy
Corporation (Bloom Energy) asking the Commission to take such action
given such development.
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\1\ 18 CFR part 292.
\2\ 16 U.S.C. 796, 824a-3.
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2. PURPA was enacted in 1978 as part of a package of legislative
proposals intended to reduce the country's dependence on oil and
natural gas, which at the time were in short supply and subject to
dramatic price increases.\3\ PURPA sets forth a framework to encourage
the development of cogeneration facilities that make more efficient use
of the heat produced both from fossil fuels used in the production of
electricity by using that heat for, e.g., industrial purposes, and also
from fossil fuels used for, e.g., industrial purposes by using that
heat for the production of electricity. As relevant here, as required
by PURPA, a cogeneration facility is a qualifying facility (QF) if the
Commission determines that the QF meets certain requirements.\4\
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\3\ Qualifying Facility Rates and Requirements Implementation
Issues Under the Public Utility Regulatory Policies Act of 1978,
Order No. 872, 85 FR 54,638 (Sept. 2, 2020), 172 FERC ] 61,041, at P
47 (2020).
\4\ 16 U.S.C. 796(18); 18 CFR 292.203(b), 292.205.
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3. In enacting PURPA, Congress could not, and did not, predict
specific technological developments that would occur in future years,
but instead recognized the Commission's discretion by directing the
Commission to ``from time to time thereafter revise[ ] such rules as it
determines necessary to encourage cogeneration.'' \5\ Although in 1978
the predominant form of cogeneration was a more traditional combined
heat and power, Congress did not limit the definition of qualifying
cogeneration facilities to the particular technologies then in
existence. Instead, Congress defined a cogeneration facility in a more
open-ended manner, as a facility that produces: (1) Electric energy;
and (2) steam or forms of useful energy, such as heat, which are used
for industrial, commercial, heating or cooling purpose.\6\ Congress
thus left it for the Commission to determine the types of facilities
that would qualify as cogeneration facilities under the statute.
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\5\ 16 U.S.C. 824a-3(a).
\6\ 16 U.S.C. 796(18)(A).
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4. Due to innovation and development in the last decade, Solid
Oxide Fuel Cell
[[Page 67700]]
systems with integrated natural gas reformation equipment are now a
viable option for efficient electric energy cogeneration furthering
PURPA's goal of encouraging the innovation and development of
cogeneration facilities. Additionally, the industrial applications of
hydrogen continue to grow, with distributed production of hydrogen
becoming increasingly important.\7\ Solid Oxide Fuel Cell systems with
integrated natural gas reformation equipment represent ``continuing
progress in the development of efficient electricity generating
technology'' \8\ since the enactment of PURPA. We find that this
development constitutes a sufficient change in circumstance since the
Commission's PURPA regulations were first promulgated in 1980 \9\ to
warrant issuing this NOPR.
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\7\ Today almost all the hydrogen produced in the United States
is used for refining petroleum, treating metals, producing
fertilizer, and processing foods, as the use of hydrogen as a fuel
source for energy generation is currently limited by lack of
infrastructure for hydrogen distribution and delivery. U.S.
Department of Energy, Alternative Fuels Data Center, Hydrogen
Production and Distribution (Oct 2020), https://afdc.energy.gov/
fuels/
hydrogen_production.html#:~:text=Natural%20Gas%20Reforming%2FGasifica
tion%3A%20Synthesis,water%20to%20produce%20additional%20hydrogen.
Thus, using the hydrogen, in this case for electricity generation,
where it is produced represents an efficient use of that hydrogen.
\8\ 16 U.S.C. 824a-3(n)(1)(A)(iii).
\9\ Small Power Production and Cogeneration Facilities--
Qualifying Status, Order No. 70, FERC Stats. & Regs. ] 30,134
(cross-referenced at 10 FERC ] 61,230), orders on reh'g, Order No.
70-A, FERC Stats. & Regs. ] 30,159 (cross-referenced at 11 FERC ]
61,119), order on reh'g, Order No. 70-B, FERC Stats. & Regs. ]
30,176 (cross-referenced at 12 FERC ] 61,128), order on reh'g, FERC
Stats. & Regs. ] 30,192 (1980) (cross-referenced at 12 FERC ]
61,306), amending regulations, Order No. 70-D, FERC Stats. & Regs. ]
30,234 (cross-referenced at 14 FERC ] 61,076), amending regulations,
Order No. 70-E, FERC Stats. & Regs. ] 30,274 (1981) (cross-
referenced at 15 FERC ] 61,281).
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5. We thus propose to add a new paragraph (4) to Sec. 292.202(h)
of its PURPA Regulations to amend the definition of ``[u]seful thermal
energy output'' of a topping cycle cogeneration facility to include
thermal energy that is used by a Solid Oxide Fuel Cell system with an
integrated steam hydrocarbon reformation process for production of fuel
for electricity generation. This definition would clarify that the
thermal energy produced by a Solid Oxide Fuel Cell that then uses the
thermal energy it produces to reform methane and produce hydrogen for
electricity generation is useful thermal energy that would enable a
facility powered by such fuel cells to be certified as a cogeneration
QF.\10\ To be clear, this NOPR applies only to Solid Oxide Fuel Cell
systems with integrated natural gas reformation that take in natural
gas to produce hydrogen and to generate electricity by using steam from
the power generation process to reform the natural gas to produce the
hydrogen that the Solid Oxide Fuel Cell systems use to generate
electricity.
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\10\ There are different types of fuel cells, classified
primarily by the kind of electrolyte used, with different kinds of
chemical reactions. The type of chemical reaction determines the
temperature range of operation, and other factors relating to the
suitability of applications. Bloom Energy Petition at 8.
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6. We seek comments on these proposed reforms 30 days from the date
of publication of the NOPR in the Federal Register.
II. Background
7. PURPA was part of a legislative package Congress enacted in 1978
to address the energy crisis then facing the country.\11\ As the
Supreme Court explained in FERC v. Mississippi, in passing PURPA
Congress was aware that domestic oil production had lagged behind
demand, and the country had become increasingly dependent on foreign
oil--which could jeopardize the country's economy and undermine its
independence.\12\ Roughly a third of the nation's electricity was
generated using oil and natural gas,\13\ and Congress concluded that
increased reliance on cogeneration and small power production could
significantly contribute to conserving this energy.\14\ As recognized
by the Supreme Court, Congress passed PURPA to address the consequences
of shortages of oil and natural gas (and electric utilities' decreasing
efficiency in their generating capacities), which adversely impacted
rates to customers and the economy as a whole.\15\
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\11\ See Public Law 95-617, 92 Stat. 3117. In addition to PURPA,
that legislative package included: The Energy Tax Act of 1978,
Public Law 95-618, 92 Stat. 3174; the National Energy Conservation
Policy Act, Public Law 95-619, 92 Stat. 3206; the Powerplant and
Industrial Fuel Use Act of 1978, Public Law 95-620, 92 Stat. 3289;
and the Natural Gas Policy Act of 1978, Public Law 95-621, 92 Stat.
3351.
\12\ FERC v. Miss., 456 U.S. 742, 756 (1982).
\13\ Id. at 745.
\14\ Id. at 757.
\15\ Id. at 745-46.
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8. Congress enacted PURPA section 210 in 1978 to address the energy
crisis by encouraging the development of QFs and thereby reducing the
country's demand for traditional fossil fuels.\16\ To accomplish this,
section 210(a) directed that the Commission ``prescribe, and from time
to time thereafter revise, such rules as [the Commission] determines
necessary to encourage cogeneration and small power production.'' \17\
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\16\ Id. at 750.
\17\ 16 U.S.C. 824a-3(a).
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9. In 1980, the Commission issued Order No. 70, which promulgated
the required rules that, as relevant here, remain in effect today.\18\
Order No. 70 established the ``criteria and procedures by which small
power producers and cogeneration facilities can obtain qualifying
status to receive the rate benefits and exemptions'' contained in
section 210 of PURPA.\19\ As relevant here, the Commission established
criteria for a cogeneration QF, a facility that, as required by the
statute, ``produces electric energy as well as steam or forms of useful
energy (such as heat) which are used for industrial, commercial,
heating or cooling purposes.'' \20\
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\18\ Order No. 70, FERC Stats. & Regs. ] 30,134.
\19\ Id. at 30,933.
\20\ 16 U.S.C. 796(18); accord 18 CFR 292.202(c).
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10. In 2005, Congress passed the Energy Policy Act of 2005 (EPAct
2005).\21\ Pursuant to section 210 of PURPA, as modified by section
1253 of EPAct 2005, the Commission established regulations to ensure
that new cogeneration QFs are using their thermal output in a
productive and beneficial manner; that the electrical, thermal,
chemical and mechanical output of any new cogeneration QFs are used
fundamentally for industrial, commercial, residential or institutional
purposes; and that there is continuing progress in the development of
efficient electric energy generating technology.\22\ In determining
whether the thermal output is used in a ``productive and beneficial
manner,'' the Commission stated it would consider factors such as
whether the product produced by the thermal energy is needed and
whether there is a market for the product.\23\
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\21\ Public Law 109-58, 119 Stat. 594, 969-70, as implemented in
Revised Regulations Governing Small Power Production and
Cogeneration Facilities, Order No. 671, FERC Stats. & Regs. ] 31,203
(cross-referenced at 114 FERC ] 61,102), order on reh'g, Order No.
671-A, FERC Stats. & Regs. ] 31,219 (2006) (cross-referenced at 115
FERC ] 61,225).
\22\ 16 U.S.C. 824-3(n)(1)(A)(iii).
\23\ Order No. 671, FERC Stats. & Regs. ] 31,203 at P 17. Here,
the relevant product would be hydrogen.
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11. Unlike more traditional electric generation that relies on
combustion of fossil fuels to produce electric energy, fuel cells
convert the chemical energy in hydrogen to electric energy without
combustion. This conversion has been characterized as a significant
improvement in the efficiency of electric generation.\24\ More
specifically, hydrogen fuel enters the anode side of the fuel cell.
Simultaneously, ambient air enters the cathode side of the fuel cell.
The hydrogen fuel on the anode
[[Page 67701]]
attracts oxygen ions from the cathode. In a Solid Oxide Fuel Cell
system with integrated natural gas reformation equipment, the resulting
electrochemical reaction provides electricity, plus heat and steam that
is used to reform natural gas on-site to produce the hydrogen fuel to
fuel the cell.\25\
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\24\ Bloom Energy Petition at 8.
\25\ Id.
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12. If the natural gas reformation equipment were instead located
offsite, then waste heat (in the form of steam) from the electricity
production by the Solid Oxide Fuel Cell would not be available to aid
the reformation process to fuel the cell. In this offsite reformation
scenario, we would expect the external reformation process to require
additional natural gas to be burned to create steam so that the
remainder of the input natural gas could be reformed into hydrogen.\26\
This would be inefficient, and inconsistent with Congress's goal in
enacting PURPA, as discussed above.
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\26\ Furthermore, as hydrogen is frequently compressed or
liquified for shipment to the point of consumption, yet more energy
would be needed for these activities. Id. at 8 & App. B.
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13. Stated another way, integrating the natural gas reformation
process into a Solid Oxide Fuel Cell generating facility as described
in this NOPR \27\ results in significant ``progress in the development
of efficient electric energy generating technology.'' \28\
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\27\ See supra P 5 (emphasizing the limited scope of the
proposed change in the regulations).
\28\ Bloom Energy Petition at 1, 3, 7, 16 (citing 16 U.S.C.
824a-3(n)(1)(A)(iii)).
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III. Commission Proposal
14. As discussed above, the statutory definition of cogeneration
facilities requires that a cogeneration facility produce ``(i) electric
energy, and (ii) steam or forms of useful energy (such as heat) which
are used for industrial, commercial, heating or cooling purposes. . .
.'' \29\ This definition provides for steam or other forms of useful
energy to be used for, e.g., an industrial purpose. The creation by a
Solid Oxide Fuel Cell system with an integrated natural gas reformation
process of a commercially valuable fuel as described in this NOPR fits
within this definition. Consistent with the PURPA regulations, Solid
Oxide Fuel Cell systems with integrated natural gas reformation
equipment produce two forms of energy: Electricity; and the heat/steam
(thermal energy) used to create the hydrogen (a chemical energy).
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\29\ 16 U.S.C. 796(18)(A).
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15. Currently, the Commission's PURPA regulations provide that a
topping-cycle cogeneration facility is a cogeneration facility in which
the energy input to the facility is first used to produce useful power
output and at least some of the reject heat from the power production
process is then used to provide useful thermal energy.\30\
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\30\ 18 CFR 292.202(d).
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16. Solid Oxide Fuel Cell systems with integrated natural gas
reformation equipment convert the chemical energy within natural gas
into electricity using a steam-methane reformation process,\31\ which
converts the natural gas input to hydrogen, which then reacts with
oxygen in the fuel cell to produce electricity. The by-product of the
fuel cell's production of electricity is heat and steam, some of which
is used in the steam-methane reformation process to convert more
methane into hydrogen, which the fuel cells use, in combination with
oxygen from the air, to produce electricity.
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\31\ Industrial gas manufacturers also produce hydrogen from
natural gas using a steam-methane reformation process, but must
produce their own steam, usually through combustion of some of the
input natural gas. Because the buyers of the resulting hydrogen are
usually remote from the industrial gas manufacturer, this hydrogen
is either compressed or liquified in order to transport the hydrogen
to the end user. Integrating the natural gas steam reformation
process into a Solid Oxide Fuel Cell system increases efficiency and
avoids the energy loss of external reformation, and compression or
liquefaction for surface transportation. Bloom Energy Petition at 8
& App. B.
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17. A cogeneration QF is one that ``produces electric energy as
well as steam or forms of useful energy (such as heat) which are used
for industrial, commercial, heating or cooling purposes.'' \32\
Consistent with these regulations, Solid Oxide Fuel Cell systems with
integrated natural gas reformation equipment generate two forms of
useful energy--electricity, and heat/steam (thermal energy) that is
used to produce hydrogen (a chemical energy). Commission regulations
provide three categories of useful thermal output of a topping-cycle
cogenerator. They are thermal energy: (1) That is ``made available to
an industrial or commercial process . . .; (2) that is used in a
heating application . . .; or (3) that is used in a space cooling
application .'' \33\ We propose to amend our regulations to provide
that the production of heat/steam by a Solid Oxide Fuel Cell system for
use in an integrated natural gas reformation process to produce
hydrogen is an industrial process that, as described in this NOPR,
yields a ``useful thermal energy output'' that entitles such a system
to be considered a topping cycle cogeneration facility that qualifies,
subject to meeting the other relevant requirements,\34\ to be a QF. The
recent technological advances in utilizing the thermal energy from a
Solid Oxide Fuel Cell in an integrated steam hydrocarbon reformation
process were not known or anticipated when the Commission adopted its
original definitions for useful thermal energy, but that fact should
not stand in the way of the Commission now recognizing such advances
and responding accordingly.\35\
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\32\ 16 U.S.C. 796(18).
\33\ 18 CFR 292.202(h).
\34\ See 18 CFR 292.203(b), 292.205.
\35\ We recognize that in EG&G, Inc., 16 FERC ] 61,060, at
61,104 (1981), the Commission stated that, for cogeneration, ``the
use of thermal energy must be completely independent of the power
production process.'' That order did not involve fuel cells and in
any event was issued under the regulations then effective, see id.
at 61,103-04, which we propose to revise in this NOPR, to now
allow--for a Solid Oxide Fuel Cell system with an integrated natural
gas reformation process--the production of hydrogen to be considered
an industrial process that yields a ``useful thermal energy output''
that entitles such a system to be considered a topping cycle
cogeneration facility that qualifies, subject to meeting the other
relevant requirements, as a QF.
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18. In sum, recognizing technological advancements over the past 40
years and Congress's commitment to ``continuing progress in the
development of efficient electric energy generating technology,'' \36\
and in light of the development and commercialization of Solid Oxide
Fuel Cell systems with integrated natural gas reformation equipment
since the original adoption of the PURPA regulations, we propose to
amend Sec. 292.202(h) of the PURPA Regulations by adding a new
paragraph to provide that useful thermal energy output includes the
thermal energy ``that is used by a solid oxide fuel cell system with an
integrated steam hydrocarbon reformation process for production of fuel
for electricity generation.''
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\36\ 16 U.S.C. 824a-3(n)(1)(A)(iii).
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19. In proposing this change to its regulations, the Commission
does not propose to revise Sec. 292.205(d) of the PURPA Regulations,
which establishes additional criteria for new cogeneration facilities
seeking to sell electric energy pursuant to PURPA section 210.\37\ The
Commission proposes that any new cogeneration facility that is a solid
oxide fuel cell system with an integrated steam hydrocarbon reformation
process would be required to satisfy the existing
[[Page 67702]]
criteria of Sec. 292.205(d) of the PURPA Regulations if it seeks to
make sales of electric energy pursuant to PURPA section 210.
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\37\ 18 CFR 292.205(d); see also 18 CFR 292.205(d)(4) (``For
purposes of paragraphs (d)(1) and (2) of this section, a new
cogeneration facility of 5 MW or smaller will be presumed to satisfy
the requirements of those paragraphs.''). That presumption, we note,
is a rebuttable presumption, though. Revised Regulations Governing
Small Power Production and Cogeneration Facilities, Order No. 671,
114 FERC ] 61,102, at PP 26, 60, order on reh'g, Order No. 671-A,
115 FERC ] 61,225 (2006).
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IV. Information Collection Statement
20. The Paperwork Reduction Act \38\ requires each federal agency
to seek and obtain the Office of Management and Budget's (OMB) approval
before undertaking a collection of information (including reporting,
record keeping, and public disclosure requirements) directed to ten or
more persons or contained in a rule of general applicability. OMB
regulations require approval of certain information collection
requirements contemplated by proposed rules (including deletion,
revision, or implementation of new requirements).\39\ Upon approval of
a collection of information, OMB will assign an OMB control number and
an expiration date. Respondents subject to the filing requirements of a
rule will not be penalized for failing to respond to the collection of
information unless the collection of information displays a valid OMB
control number.
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\38\ 44 U.S.C. 3501-21.
\39\ See 5 CFR 1320.11.
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Public Reporting Burden: In this NOPR, the Commission proposes to
revise its regulations implementing PURPA. The proposed change is to
provide that useful thermal energy outputs will now include the thermal
energy ``that is used by a solid oxide fuel cell system with an
integrated steam hydrocarbon reformation process for production of fuel
for electricity generation.'' The estimated changes to the burden and
cost of the information collection affected by this NOPR, i.e., the
FERC Form No. 556, follow.\40\
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\40\ The changes to the FERC Form No. 556, adopted in Order No.
872 are pending OMB review (under ICR #202006-1902-004). Those
changes are separate and are not addressed in this NOPR.
FERC-556, Certification of Qualifying Facility Status for a Small Power Production or Cogeneration Facility, Proposed Changes Due to NOPR in Docket Nos.
RM21-2-000 and RM20-20-000 \41\
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Annual number Average burden Total annual Annual cost
Facility type Filing tpe Number of of responses Total number hours & cost per burden hours & per
respondents per respondent of responses response total annual cost respondent ($)
(1) (2) (1) * (2) = (4).............. (3) * (4) = (5).. (5) / (1)
(3)
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Cogeneration Facility <=1 MW Self- 5 \43\ 600 3,000 1.5 hrs.; $124.50 4,500 hrs.; $74,700
\42\. certification. $373,500.
Cogeneration Facility >1 MW.... Self- 5 20 100 1.5 hrs.; $124.50 1,500 hrs.; 2,490
certification. $12,450.
Cogeneration Facility >1 MW.... Application for 5 1 5 50 hrs.; $4,150.. 250 hrs.; $20,750 4,150
FERC
certification.
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FERC-556, Total additional ................. 15 .............. 3,105 ................. 6,250 hrs.; ..............
burden and cost due to $406,700.
NOPR in RM21-2 and RM20-20.
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Title: FERC-556, Certification of Qualifying Facility (QF) Status
for a Small Power Production or Cogeneration Facility.
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\41\ The figures in this table reflect estimated changes to the
current OMB-approved inventory for the FERC Form No. 556 (approved
by OMB on November 18, 2019). This table only reflects cogeneration
facilities because small power production facilities will not be
affected by the proposed changes in the NOPR. The Commission staff
believes that the industry is similarly situated to the Commission
in terms of wages and benefits. Therefore, cost estimates are based
on FERC's 2020 average hourly wage (and benefits) of $83.00/hour.
\42\ Such facilities are not required to file but have the
choice whether to do so.
\43\ Bloom Energy has stated they have 600 facilities, with an
average size of 0.6 MW, see Bloom Energy Petition at 14, which, if
they all were in fact to file, would result in as many as 600 self-
certifications of below 1 MW facilities. The Commission accordingly
will adopt a conservative approach and estimate 600 such responses
over the course of a year, which is especially conservative given
that the Commission's regulations do not require below-1 MW
facilities to submit self-certifications.
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Action: Revisions to existing information collection FERC-556.\44\
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\44\ The FERC Form No. 556 is not being revised, but respondents
with Solid Oxide Fuel Cell systems with integrated natural gas
reformation equipment who are self-certifying or requesting
Commission certification as a cogenerator will use the FERC Form No.
556. On page 8, item 6a of the FERC Form No. 556, those respondents
should indicate ``Fossil fuel, natural gas (not waste).''
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OMB Control No.: 1902-0075.
Respondents: Facilities that are self-certifying their status as a
cogenerator or that are submitting an application for Commission
certification of their status as a cogenerator; and electric utilities,
state regulatory authorities, or other entities submitting comments on,
or protests to, the self-certification or application for Commission
certification.
Frequency of Information: Ongoing.
Necessity of Information: The Commission proposes the changes in
this NOPR in order to revise its implementation of PURPA in light of
technological advancements in electric generation since the enactment
of PURPA in 1978.
Internal Review: The Commission has reviewed the proposed changes
and has determined that such changes are necessary. These requirements
conform to the Commission's ongoing need for efficient information
collection, communication, and management within the energy industry,
in light of technological advancements in electric generation.
Interested persons may obtain information on the reporting
requirements by contacting the Federal Energy Regulatory Commission,
888 First Street NE, Washington, DC 20426 [Attention: Ellen Brown,
Office of the Executive Director], by email to DataClearance@ferc.gov,
or by phone (202) 502-8663.
Please send comments concerning the collection of information and
the associated burden estimates to: Office of Information and
Regulatory Affairs, Office of Management and Budget [Attention: Federal
Energy Regulatory Commission Desk Officer]. Due to security concerns,
comments should be sent directly to www.reginfo.gov/public/do/PRAMain.
Comments submitted to OMB should be sent within 30 days of publication
of this proposed rule in the Federal Register and should refer to FERC-
556 (OMB Control No. 1902-0075).
V. Environmental Analysis
21. 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
[[Page 67703]]
environment.\45\ Whether and how the revisions proposed here, however,
would affect QF development and the environment is speculative.
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\45\ Regulations Implementing National Environmental Policy Act
of 1969, Order No. 486, 52 FR 47,897 (Dec. 17, 1987), FERC Stats. &
Regs. Preambles 1986-1990 ] 30,783 (1987) (cross-referenced at 41
FERC ] 61,284).
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22. The proposed changes to the PURPA Regulations do not authorize
or fund particular generation that may happen to qualify as QFs, nor do
they license or issue permits for operation of generation that may
happen to qualify as QFs; such generation can be built and operated
independent of, i.e., without, QF certification. They do not authorize
or prohibit a generator's use of any particular technologies or fuels,
nor do they mandate or limit where QFs should or should not be built.
They do not exempt QFs from any Federal, state or local environmental,
siting, or other similar laws or regulatory requirements. Given these
facts any environmental impact analysis of the revisions proposed here
would be speculative and not meaningfully inform the Commission or the
public of the revisions' impact on QF development or, correspondingly,
of any associated potential impacts on the environment; there are, in
short, no reasonably foreseeable environmental impacts for the
Commission to consider.\46\ Moreover, the revisions proposed here would
apply only to a limited number of QFs: Solid Oxide Fuel Cell systems
with integrated natural gas reformation equipment. Therefore, the
Commission will not prepare an environmental document.
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\46\ While courts have held that NEPA requires ``reasonable
forecasting,'' an agency is not required ``to engage in speculative
analysis'' or ``to do the impractical, if not enough information is
available to permit meaningful consideration.'' N. Plains Res.
Council v. Surface Transp. Board, 668 F.3d 1067, 1078 (9th Cir.
2011).
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VI. Regulatory Flexibility Act Analysis
23. The Regulatory Flexibility Act of 1980 (RFA) \47\ generally
requires a description and analysis of proposed rules that will have
significant economic impact on a substantial number of small entities.
In lieu of preparing a regulatory flexibility analysis, an agency may
certify that a proposed rule will not have a significant economic
impact on a substantial number of small entities.\48\
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\47\ 5 U.S.C. 601-12.
\48\ 5 U.S.C. 605(b).
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24. The Small Business Administration's (SBA) Office of Size
Standards develops the numerical definition of a small business.\49\
The SBA size standard for electric utilities is based on the number of
employees, including affiliates.\50\ Under SBA's current size
standards, the threshold for a small entity (including its affiliates)
is 250 employees for cogeneration in the NAICS \51\ category:
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\49\ 13 CFR 121.101.
\50\ SBA Final Rule on ``Small Business Size Standards:
Utilities,'' 78 FR 77, 343 (Dec. 23, 2013).
\51\ The North American Industry Classification System (NAICS)
is an industry classification system that Federal statistical
agencies use to categorize businesses for the purpose of collecting,
analyzing, and publishing statistical data related to the U.S.
economy. United States Census Bureau, North American Industry
Classification System, https://www.census.gov/eos/www/naics/
(accessed October 4, 2020).
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NAICS Code 221118 for Other Electric Power Generation
25. The Commission does not expect the proposed revision, if
adopted, to affect a substantial number of small entities. This
proposed rule directly affects only certain QFs, i.e., those that are
Solid Oxide Fuel Cell systems with integrated natural gas reformation
equipment; this proposed rule is voluntary. That is, this proposed rule
expands the types of cogenerators that would be eligible to qualify as
QFs to include Solid Oxide Fuel Cell systems with integrated natural
gas reformation equipment, but this proposed rule does not require
Solid Oxide Fuel Cell systems with integrated natural gas reformation
equipment to file for QF certification. The Commission does not
anticipate that the number of affected small entities would be
substantial, nor does the Commission expect that any additional
reporting burden or cost imposed on QFs, regardless of their status as
a small or large business, would be significant.\52\
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\52\ The average cost per response is estimated to vary from
$124.50 to $4,150. The cost per respondent will vary based on the
respondent's number of facilities and related requests for self-
certification and applications for Commission certification (with an
estimated cost ranging from $2,490 to $74,700 per respondent).
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VII. Comment Procedures
26. The Commission invites interested persons to submit comments on
the matters and issues proposed in this document to be adopted,
including any related matters or alternative proposals that commenters
may wish to discuss. Comments are due November 25, 2020. Comments must
refer to Docket Nos. RM21-2-000 and RM20-20-000, and must include the
commenter's name, the organization the commenter represents, if
applicable, and the commenter's address.
27. The Commission encourages comments to be filed electronically
via the eFiling link on the Commission's website at http://www.ferc.gov. The Commission accepts most standard word processing
formats. Documents created electronically using word processing
software should be filed in native applications or print-to-PDF format
and not in a scanned format. Commenters filing electronically do not
need to make a paper filing.
28. Commenters that are not able to file comments electronically
must send an original of their comments to: Federal Energy Regulatory
Commission, Secretary of the Commission, 888 First Street NE,
Washington, DC 20426.
29. All comments will be placed in the Commission's public files
and may be viewed, printed, or downloaded remotely as described in the
Document Availability section below. Commenters on this proposal are
not required to serve copies of their comments on other commenters.
VIII. Document Availability
30. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
internet through the Commission's Home Page (http://www.ferc.gov). At
this time, the Commission has suspended access to the Commission's
Public Reference Room due to the President's March 13, 2020
proclamation declaring a National Emergency concerning the Novel
Coronavirus Disease (COVID-19).
31. 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.
32. User assistance is available for eLibrary and the Commission's
website during normal business hours from the Commission's 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. Email the Public Reference Room at public.referenceroom@ferc.gov.
List of Subjects in 18 CFR Part 292
Electric power plants, Electric utilities, Reporting and
recordkeeping requirements.
By direction of the Commission.
Issued: October 15, 2020.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
In consideration of the foregoing, the Commission proposes to amend
part
[[Page 67704]]
292, chapter I, title 18, Code of Federal Regulations, as follows.
PART 292--REGULATIONS UNDER SECTIONS 201 AND 210 OF THE PUBLIC
UTILITY REGULATORY POLICIES ACT OF 1978 WITH REGARD TO SMALL POWER
PRODUCTION AND COGENERATION
0
1. The authority citation for part 292 continues to read as follows:
Authority: 16 U.S.C. 791a-825r, 2601-2645; 31 U.S.C. 9701; 42
U.S.C. 7101-7352.
0
2. Amend Sec. 292.202 by:
0
a. revising paragraphs (h)(2) and (3); and
0
b. adding paragraph (h)(4).
The revisions and addition read as follows:
Sec. 292.202 Definitions.
* * * * *
(h) * * *
(2) That is used in a heating application (e.g., space heating,
domestic hot water heating);
(3) That is used in a space cooling application (i.e., thermal
energy used by an absorption chiller); or
(4) That is used by a solid oxide fuel cell system with an
integrated steam hydrocarbon reformation process for production of fuel
for electricity generation.
* * * * *
[FR Doc. 2020-23282 Filed 10-23-20; 8:45 am]
BILLING CODE 6717-01-P