tasks, prior to the award of a cooperative agreement.

§ 461.36 Allowable expenditures. Expenditures of funds provided under this subpart are subject to the following limitations:

(a) Funds may not be used for the purchase or lease of non-office equipment.

(b) Funds may not be used for the purchase of data processing hardware.

(c) Funds may not be substituted for funds made available to the recipient from other governmental sources.

(d) Other limitations imposed by DOE pursuant to applicable statutes or regulations, in order to ensure effective performance by the recipient under the cooperative agreement.

mean those electric utilities whose total sales of electric energy for purposes other than resale exceeded 500 million kilowatt-hours during any calendar year beginning after December 31, 1975, and before the immediately preceding calendar year.

"Covered gas utilities" and "covered nonregulated gas utilities” mean those gas utilities whose total sales of natural gas for purposes other than resale exceeded 10 billion cubic feet during any calendar year beginning after December 31, 1975, and before the immediately preceding calendar year.

"DOE" means the Department of Energy.

"Electric utility" means any person, State agency or federal agency which sells electric energy.

"Federal agency" means an executive agency (as defined in section 105 of Title 5 of the United States Code).

"Gas utility" means any person, State agency or Federal agency engaged in the local distribution of natural gas and the sale of natural gas to any ultimate consumer of natural gas.

"Nonregulated electric utility" means any electric utility with respect to which no State regulatory authority has ratemaking authority.

"Nonregulated gas utility" means any gas utility with respect to which no State regulatory authority has ratemaking authority.

"Person" means an individual, partnership, corporation, unincorporated association or any other group, organization or entity.

“PURPA” means the Public Utility Regulatory Policies Act of 1978, Pub. L. 95-617, 92 Stat. 3117 et seq.

"Rate" means (a) any price, rate, charge or classification made, demanded, observed, or received with respect to the sale of electric energy by an electric utility to an electric consumer or the sale of natural gas to a gas consumer, (b) any rule, regulation, or practice respecting any such rate, charge or classification, and (c) any contract pertaining to the sale of electric energy to an electric consumer or the sale of natural gas to a gas con

sumer.

"Ratemaking authority" means authority to fix, modify, approve or disapprove rates.

"Sale" means a transfer to a purchaser for consideration, and when used with respect to electric energy includes any exchange of electric energy, and when used with respect to natural gas includes any exchange of natural gas.

a

"State" means a State, the District of Columbia, and Puerto Rico. "State agency" means State agency, political subdivision thereof, and any agency or instrumentality of either.

"State regulatory authority" means any State agency which has ratemaking authority with respect to the sale of electric energy by any electric utility, or the sale of natural gas by any gas utility, other than by such State agency, and in the case of an electric utility with respect to which the Tennessee Valley Authority has ratemaking authority, such term means the Tennessee Valley Authority.

§ 463.3 Reporting requirement.

(a) Each State regulatory authority, with respect to each covered electric and gas utility for which it has ratemaking authority, and each covered nonregulated electric and gas utility shall report to DOE by November 9 of each year from 1979 through 1988 on their progress in considering the ratemaking and other regulatory standards established by sections 111(d), 113(b) and 303(b) of PURPA.

(b) The requirements of paragraph (a) of this section do not apply to the operations of an electric or gas utility, or to proceedings respecting such operations, to the extent that such operations or proceedings relate to sales of electric energy or natural gas for purposes of resale.

(c) The reporting period for the report required by paragraph (a) shall be the 12 month period ending June 30 of the year in which the report is due, except that the reporting period for the first report shall be November 9, 1978 to June 30, 1979.

(d) The report required by paragraph (a) must be submitted on Form ERA-166: PURPA Annual Report on Electric and Gas Utilities, as it may be revised from time to time.

AUTHORITY: National Energy Extension Service Act, enacted as Title V of the Energy Research and Development Administration Authorization Act of 1977, Title V of Pub. L. 95-39, 91 Stat. 191 et seq., 42 U.S.C. 7001 et seq.; Department of Energy Organization Act, Pub. L. 95-91, 91 Stat. 965 et seq., 42 U.S.C. 7101 et seq.; Federal Grant and Cooperative Agreement Act of 1977, Pub. L. 95-224, 92 Stat. 3 et seq., 41 U.S.C. 501 et seq.; E.O. 12009, 42 FR 46267; E.O. 12044 43 FR 12660.

SOURCE: 43 FR 45541, Oct. 2, 1978, unless otherwise noted.

§ 465.1 Purpose and scope.

This part contains the regulation adopted by DOE to establish a comprehensive Energy Extension Service program which shall

(a) Establish a positive energy outreach program directed toward small businesses and individual energy users and the organizations that influence their energy consumption;

(b) Stimulate, provide for and supplement programs for the conduct of evaluation, planning and other technical assistance of energy conservation efforts, including energy outreach activities of States; and

(c) Provide financial and technical assistance to the States for State plans which contribute to the implementa

means the Tennessee Valley Authority.

"State utility regulatory commission" or "commission" means any State agency which has ratemaking authority with respect to the sale of natural gas or electric energy by any natural gas utility or electric utility (other than by such State agency).

Subpart B-PURPA Grant Program

§ 461.10 Purpose and scope.

This subpart establishes a program of grants to State utility regulatory commissions and certain nonregulated electric utilities to assist them in carrying out their duties and responsibilities under Titles I and III, and section 210, of PURPA.

§ 461.11 PURPA standards.

PURPA Titles I and III, among other things, require each State regulatory authority with ratemaking authority for a covered State regulated electric or gas utility, as well as each covered nonregulated electric and gas utility, to consider certain Federal standards for each such utility and to prepare determinations about whether it is appropriate to implement each of these standards.

(a) Title I of PURPA establishes six electric rate design standards. They

are:

(1) Cost of Service-Rates charged by any electric utility for providing electric service to each class of electric consumers shall be designed, to the maximum extent practicable, to reflect the costs of providing electric service to such class, as determined under PURPA section 115(a).

(2) Declining Block Rates-The energy component of a rate, or the amount attributable to the energy component in a rate, charged by any electric utility for providing electric service during any period to any class of electric consumers may not decrease as kilowatt-hour consumption by such class increases during such period except to the extent that such utility demonstrates that the costs to such utility of providing electric service to such class, which costs are attributable to such energy component,

decrease as such consumption increases during such period.

Time-of-Day-Rates-The

rates

(3) charged by any electric utility for providing electric service to each class of electric consumers shall be on a timeof-day basis which reflects the costs of providing electric service to such class of electric consumers at different times of the day unless such rates are not cost-effective with respect to such class, as determined under PURPA section 115(b).

(4) Seasonal Rates-The rates charged by an electric utility for providing electric service to each class of electric consumers shall be on a seasonal basis which reflects the costs of providing service to such class of consumers at different seasons of the year to the extent that such costs vary seasonally for such utility.

(5) Interruptible Rates-Each electric utility shall offer each industrial and commercial electric consumer an interruptible rate which reflects the costs of providing interruptible service to the class of which such consumer is a member.

(6) Load Management Techniques— Each electric utility shall offer to its electric consumers such load management techniques as the State regulatory authority (or the non-regulated electric utility) has determined will be practicable and cost-effective, as determined under PURPA section 115(c); be reliable and provide useful energy or capacity management advantages to the electric utility.

(b) Title I of PURPA establishes five electric regulatory policy standards. They are:

(1) Master Metering-To the extent determined appropriate under PURPA section 115(d), master metering of electric service in the case of new buildings shall be prohibited or restricted to the extent necessary to carry out the purposes of Title I of PURPA.

(2) Automatic Adjustment ClausesNo electric utility may increase any rate pursuant to an automatic adjustment clause unless such clause meets the requirements of PURPA section 115(e).

(3) Information to Consumers-Each electric utility shall transmit to each

of its electric consumers information regarding rate schedules in accordance with the requirements of PURPA section 115(f) and information on such consumer's annual consumption upon request.

(4) Procedures for Termination of Electric Service-No electric utility may terminate electric service to any electric consumer except pursuant to procedures described in PURPA section 115(g).

(5) Advertising-No electric utility may recover from any person other than the shareholders (or other owners) of such utility any direct or indirect expenditure by such utility for promotional or political advertising as defined in PURPA section 115(h).

(c) Title III of PURPA establishes two natural gas regulatory policy standards. They are:

(1) Procedures for Termination of Natural Gas Services-No gas utility may terminate natural gas service to any gas consumer except pursuant to procedures described in PURPA section 304(a).

(2) Advertising-No gas utility may recover from any person other than the shareholders (or other owners) of such utility any direct or indirect expenditure by such utility for promotional or political advertising as defined in PURPA section 304(b).

§ 461.12 Eligibility requirements.

(a) Grants under this subpart may be made only to State utility regulatory commissions which have ratemaking authority over covered electric or covered gas utilities, and to covered nonregulated electric utilities, except for Federal agencies.

(b) Each applicant must certify that it meets the eligibility requirements of paragraph (a) of this section.

§ 461.13 Duties and responsibilities eligible for funding.

(a) DOE will award financial assistance under this subpart for activities which carry out the duties and responsibilities of applicants under Titles I and III, and section 210 of PURPA.

(b) The duties and responsibilities, set forth in Titles I and III, and section 210, of PURPA, include:

(1) The consideration, after public notice and hearing, of the Federal standards, and the preparation of written determinations about the appropriateness of implementing each

standard.

(2) A determination, after an evidentiary hearing, by the State regulatory authority or a nonregulated electric utility, as to whether a State regulated electric utility or the nonregulated electric utility not having a lifeline rate should implement such a rate.

(3) Consideration of other concepts which contribute to the achievement of any of the three purposes of Title I of PURPA when raised by the Secretary, any affected electric utility, or any electric consumer of an affected electric utility in any ratemaking proceeding or other appropriate regulatory proceeding relating to electric rates or rate design conducted by a State regulatory authority or by a nonregulated electric utility.

access

(4) Provision to intervenors or participants of to information available to parties to an electric ratemaking proceeding described in section 121(b) of PURPA, if the information is relevant to the issues to which his or her intervention or participation in such a proceeding relates.

(5) Submission, not later than November 9, 1979, and annually thereafter for ten years, of reports to DOE respecting consideration of the Federal standards. The reports must include a summary of the determinations made and actions taken with respect to each standard on a utility-by-utility basis.

(6) The gathering and filing by electric utilities of information determined by FERC to be necessary to determine costs associated with providing electric service.

(7) Implementation, after notice of and opportunity for public hearing, of rules prescribed by FERC to encourage cogeneration and small power production.

(c) The activities referred to in paragraph (a) of this section may include, among other things:

(1) Recruiting, hiring, training, and compensating staff to perform analytical, technical, legal, and administrative work;

(2) Soliciting and engaging consultants to perform appropriate assignments;

(3) Identifying and removing any policy, organizational, management, or other barriers to effective accomplishment of the duties and responsibilities; (4) Conducting hearings;

(5) Establishing the format for and collecting information and data necessary to the effective and efficient consideration and determination of the Federal standards and necessary to the development of rates based on a utility's costs of service;

(6) Collecting cost of service data as required by FERC and submitting these data to FERC;

(7) Developing or refining data handling techniques or procedures, including computer programs and other technical resources;

(8) Developing new, or revising existing, procedural requirements to improve the quality of the regulatory process or to obtain a more complete record upon which to consider and determine immediate and future ratemaking or policy issues;

(9) Developing and implementing methods of effectively communicating useful information to electric consumers on issues relevant to rates or rate designs; and

(10) Developing procedures by which to secure, format, and update data for inclusion in the annual reports to DOE.

§ 461.14 Allowable expenditures.

(a) Grant funds provided under this subpart may be used only to carry out duties and responsibilities under Titles I and III, and section 210, of PURPA. (b) Expenditures of grant funds are subject to the following limitations:

(1) Not more than 49 percent of the grant funds awarded in any year may be used for the compensation of permanent personnel for their activities in carrying out PURPA duties and responsibilities. Compensation includes wages, salaries, and supplementary compensation and benefits.

(2) No grant funds may be used for the purchase of data processing hard

ware.

(3) No grant funds may be used for the purchase or lease of non-office equipment.

(4) No grant funds may be substituted for funds made available to the grantee from other governmental

sources.

(5) Other limitations imposed by DOE pursuant to applicable statutes or regulations, in order to ensure effective performance by the grantee under the grant.

§ 461.15 Grant application.

(a) To be eligible to receive a grant under this subpart, an applicant shall submit an application in conformity with paragraph (b) of this section on a form to be provided by DOE, which shall be received by DOE on or before 5:30 p.m. e.d.t. on the August 15th preceding the fiscal year for which financial assistance is sought or such other date as DOE may establish by notice published in the FEDERAL REGISTER.

(b) Each application must include(1) A brief overview statement of the objectives to be accomplished with the financial assistance received by the grantee, and an explanation of how these objectives relate to the applicant's ongoing work.

(2) A statement of which duties and responsibilities set forth in Titles I and III, and section 210, of PURPA are proposed to be carried out by the applicant with financial assistance received under this subpart.

(3) A detailed description of the activities proposed to be undertaken by the applicant with financial assistance received under this subpart, and of how the activities are related to the duties and responsibilities proposed to be carried out.

(4) A timetable, by calendar quarter, for implementing the activities for the fiscal year for which financial assistance is sought.

(5) A description of the organizational structure of the applicant, including an identification of which oganizational units will expend the financial assistance.

(6) A description of the responsibilities, experience and qualifications of key personnel proposed to be used to