ERAC Regulatory Compliance & Legal Framework 4

Question 1

Under NERC's compliance monitoring framework, what is the significance of a 'Reliability Standard Audit Worksheet' (RSAW)?

Accepted Answer

It serves as NERC's guidance document outlining how auditors assess compliance with a particular reliability standard

Answer

RSAWs are documents developed by NERC that guide both auditors and registered entities on how each reliability standard requirement is assessed during audits.

Question 2

The Clean Water Act Section 401 certification process gives states authority to do which of the following for federally permitted energy projects?

Accepted Answer

Condition or deny federal permits based on state water quality standards

Answer

Section 401 allows states to grant, condition, or deny certification that a federally permitted project complies with state water quality standards, giving states significant leverage over hydropower and other projects.

Question 3

Under CFTC regulations implementing Dodd-Frank, the 'end-user exception' to mandatory clearing requirements is available to energy companies that meet which primary criterion?

Accepted Answer

They are not financial entities and use swaps to hedge or mitigate commercial risk

Answer

The end-user exception exempts non-financial entities, like commercial energy companies, from mandatory clearing when they use swaps to hedge commercial risk, not for speculative purposes.

Question 4

Which federal statute primarily governs the siting, construction, and operation of nuclear power plants in the United States?

Accepted Answer

Energy Reorganization Act of 1974 / Atomic Energy Act

Answer

The Atomic Energy Act (as amended by the Energy Reorganization Act) authorizes the NRC to license and regulate civilian nuclear facilities, including power plants.

Question 5

A FERC-jurisdictional pipeline files a tariff change that would increase rates. Under the Natural Gas Act, within how many days must FERC act on a proposed rate change before it goes into effect by operation of law?

Accepted Answer

60 days

Answer

Under the NGA, proposed tariff changes become effective 60 days after filing unless FERC acts to suspend or investigate them within that period.

(ERAC) Energy Risk Auditor Certification Practice Test

(ERAC) Energy Risk Auditor Certification Practice Test

ERAC Regulatory Compliance & Legal Framework 4