Regulatory Compliance & Legal Framework Flashcards
7 cards from real ERAC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Regulatory Compliance & Legal Framework flashcards as text
Under FERC Order 1000, which of the following is a key requirement for regional transmission planning?
Answer: Removal of federal rights of first refusal for incumbent utilities in competitive transmission
FERC Order 1000 removed the federal right of first refusal for incumbent utilities, opening competitive solicitation for certain transmission projects.
The Clean Air Act's New Source Review (NSR) program is triggered when a stationary source undergoes a modification that causes a significant net emissions increase. Which agency administers NSR at the federal level?
Answer: Environmental Protection Agency
The EPA administers NSR under the Clean Air Act, requiring pre-construction permits for major modifications at stationary sources.
A utility company discovers it may have violated NERC CIP reliability standards. What is the correct initial regulatory notification step?
Answer: Self-report the potential violation to NERC or the relevant Regional Entity
NERC CIP standards require entities to self-report potential violations to NERC or their Regional Entity as part of compliance obligations.
Which provision of the Energy Policy Act of 2005 granted FERC backstop siting authority for interstate electric transmission facilities?
Answer: Section 216
Section 216 of EPAct 2005 gave FERC backstop authority to issue permits for transmission in designated National Interest Electric Transmission Corridors.
Under the Natural Gas Act, FERC's jurisdiction over natural gas transportation applies primarily to which category of entities?
Answer: Interstate natural gas pipelines and related facilities
The Natural Gas Act grants FERC jurisdiction over the transportation and sale of natural gas in interstate commerce, primarily covering interstate pipelines.
Which legal doctrine allows FERC to preempt state regulation when state actions conflict with federally approved wholesale electricity rates?
Answer: Filed Rate Doctrine / Supremacy Clause preemption
The Filed Rate Doctrine combined with Supremacy Clause preemption prevents states from setting rates or terms that conflict with FERC-approved wholesale tariffs.
In the context of energy market compliance, a 'code of conduct' between a regulated utility and its affiliate is required under FERC Standards of Conduct primarily to prevent what?
Answer: Cross-subsidization and preferential sharing of market-sensitive information
FERC Standards of Conduct require separation between transmission providers and their energy affiliates to prevent preferential treatment and improper information sharing.