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Electric Reliability 2000 Act (Introduced in the Senate)
S 2071 IS1S
(Star Print)
106th CONGRESS
2d Session
S. 2071
To benefit electricity consumers by promoting the reliability of the
bulk-power system.
IN THE SENATE OF THE UNITED STATES
February 10, 2000
Mr. GORTON introduced the following bill; which was read twice and referred
to the Committee on Energy and Natural Resources
A BILL
To benefit electricity consumers by promoting the reliability of the
bulk-power system.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Electric Reliability 2000 Act'.
SEC. 2. ELECTRIC RELIABILITY ORGANIZATION.
(a) IN GENERAL- Part II of the Federal Power Act (16 U.S.C. 824 et seq.)
is amended by adding at the end the following:
`SEC. 215. ELECTRIC RELIABILITY ORGANIZATION.
`(a) DEFINITIONS- In this section:
`(1) AFFILIATED REGIONAL RELIABILITY ENTITY- The term `affiliated
regional reliability entity' means an entity delegated authority under
subsection (h).
`(A) IN GENERAL- The term `bulk-power system' means all facilities and
control systems necessary for operating an interconnected electric power
transmission grid or any portion of an interconnected transmission
grid.
`(B) INCLUSIONS- The term `bulk-power system' includes--
`(i) high voltage transmission lines, substations, control centers,
communications, data, and operations planning facilities necessary for
the operation of all or any part of the interconnected transmission
grid; and
`(ii) the output of generating units necessary to maintain the
reliability of the transmission grid.
`(3) BULK-POWER SYSTEM USER- The term `bulk-power system user' means an
entity that--
`(A) sells, purchases, or transmits electric energy over a bulk-power
system; or
`(B) owns, operates, or maintains facilities or control systems that
are part of a bulk-power system; or
`(C) is a system operator.
`(4) ELECTRIC RELIABILITY ORGANIZATION- The term `electric reliability
organization' means the organization designated by the Commission under
subsection (d).
`(5) ENTITY RULE- The term `entity rule' means a rule adopted by an
affiliated regional reliability entity for a specific region and designed to
implement or enforce 1 or more organization standards.
`(6) INDEPENDENT DIRECTOR- The term `independent director' means a
person that--
`(A) is not an officer or employee of an entity that would reasonably
be perceived as having a direct financial interest in the outcome of a
decision by the board of directors of the electric reliability
organization; and
`(B) does not have a relationship that would interfere with the
exercise of independent judgment in carrying out the responsibilities of a
director of the electric reliability organization.
`(7) INDUSTRY SECTOR- The term `industry sector' means a group of
bulk-power system users with substantially similar commercial interests, as
determined by the board of directors of the electric reliability
organization.
`(8) INTERCONNECTION- The term `interconnection' means a geographic area
in which the operation of bulk-power system components is synchronized so
that the failure of 1 or more of the components may adversely affect the
ability of the operators of other components within the interconnection to
maintain safe and reliable operation of the facilities within their
control.
`(9) ORGANIZATION STANDARD-
`(A) IN GENERAL- The term `organization standard' means a policy or
standard adopted by the electric reliability organization to provide for
the reliable operation of a bulk-power system.
`(B) INCLUSIONS- The term `organization standard' includes--
`(i) an entity rule approved by the electric reliability
organization; and
`(ii) a variance approved by the electric reliability
organization.
`(10) PUBLIC INTEREST GROUP-
`(A) IN GENERAL- The term `public interest group' means a nonprofit
private or public organization that has an interest in the activities of
the electric reliability organization.
`(B) INCLUSIONS- The term `public interest group' includes--
`(i) a ratepayer advocate;
`(ii) an environmental group; and
`(iii) a State or local government organization that regulates
participants in, and promulgates government policy with respect to, the
market for electric energy.
`(A) IN GENERAL- The term `system operator' means an entity that
operates or is responsible for the operation of a bulk-power
system.
`(B) INCLUSIONS- The term `system operator' includes--
`(i) a control area operator;
`(ii) an independent system operator;
`(iii) a transmission company;
`(iv) a transmission system operator; and
`(v) a regional security coordinator.
`(12) VARIANCE- The term `variance' means an exception from the
requirements of an organization standard (including a proposal for an
organization standard in a case in which there is no organization standard)
that is adopted by an affiliated regional reliability entity and is
applicable to all or a part of the region for which the affiliated regional
reliability entity is responsible.
`(b) COMMISSION AUTHORITY-
`(1) JURISDICTION- Notwithstanding section 201(f), within the United
States, the Commission shall have jurisdiction over the electric reliability
organization, all affiliated regional reliability entities, all system
operators, and all bulk-power system users, including entities described in
section 201(f), for purposes of approving organization standards and
enforcing compliance with this section.
`(2) DEFINITION OF TERMS- The Commission may by regulation define any
term used in this section consistent with the definitions in subsection (a)
and the purpose and intent of this Act.
`(c) EXISTING RELIABILITY STANDARDS-
`(1) SUBMISSION TO THE COMMISSION- Before designation of an electric
reliability organization under subsection (d), any person, including the
North American Electric Reliability Council and its member Regional
Reliability Councils, may submit to the Commission any reliability standard,
guidance, practice, or amendment to a reliability standard, guidance, or
practice that the person proposes to be made mandatory and
enforceable.
`(2) REVIEW BY THE COMMISSION- The Commission, after allowing interested
persons an opportunity to submit comments, may approve a proposed mandatory
standard, guidance, practice, or amendment submitted under paragraph (1) if
the Commission finds that the standard, guidance, or practice is just,
reasonable, not unduly discriminatory or preferential, and in the public
interest.
`(3) EFFECT OF APPROVAL- A standard, guidance, or practice shall be
mandatory and applicable according to its terms following approval by the
Commission and shall remain in effect until it is--
`(A) withdrawn, disapproved, or superseded by an organization standard
that is issued or approved by the electric reliability organization and
made effective by the Commission under section (e); or
`(B) disapproved by the Commission if, on complaint or upon motion by
the Commission and after notice and an opportunity for comment, the
Commission finds the standard, guidance, or practice to be unjust,
unreasonable, unduly discriminatory or preferential, or not in the public
interest.
`(4) ENFORCEABILITY- A standard, guidance, or practice in effect under
this subsection shall be enforceable by the Commission.
`(d) DESIGNATION OF ELECTRIC RELIABILITY ORGANIZATION-
`(A) PROPOSED REGULATIONS- Not later than 90 days after the date of
enactment of this section, the Commission shall propose regulations
specifying procedures and requirements for an entity to apply for
designation as the electric reliability organization.
`(B) NOTICE AND COMMENT- The Commission shall provide notice and
opportunity for comment on the proposed regulations.
`(C) FINAL REGULATION- Not later than 180 days after the date of
enactment of this section, the Commission shall promulgate final
regulations under this subsection.
`(A) SUBMISSION- Following the promulgation of final regulations under
paragraph (1), an entity may submit an application to the Commission for
designation as the electric reliability organization.
`(B) CONTENTS- The applicant shall describe in the
application--
`(i) the governance and procedures of the applicant; and
`(ii) the funding mechanism and initial funding requirements of the
applicant.
`(3) NOTICE AND COMMENT- The Commission shall--
`(A) provide public notice of the application; and
`(B) afford interested parties an opportunity to comment.
`(4) DESIGNATION OF ELECTRIC RELIABILITY ORGANIZATION- The Commission
shall designate the applicant as the electric reliability organization if
the Commission determines that the applicant--
`(A) has the ability to develop, implement, and enforce standards that
provide for an adequate level of reliability of bulk-power
systems;
`(B) permits voluntary membership to any bulk-power system user or
public interest group;
`(C) ensures fair representation of its members in the selection of
its directors and fair management of its affairs, taking into account the
need for efficiency and effectiveness in decisionmaking and operations and
the requirements for technical competency in the development of
organization standards and the exercise of oversight of bulk-power system
reliability;
`(D) ensures that no 2 industry sectors have the ability to control,
and no 1 industry sector has the ability to veto, the applicant's
discharge of its responsibilities as the electric reliability organization
(including actions by committees recommending standards for approval by
the board or other board actions to implement and enforce
standards);
`(E) provides for governance by a board wholly comprised of
independent directors;
`(F) provides a funding mechanism and requirements that--
`(i) are just, reasonable, not unduly discriminatory or preferential
and in the public interest; and
`(ii) satisfy the requirements of subsection (l);
`(G) has established procedures for development of organization
standards that--
`(i) provide reasonable notice and opportunity for public comment,
taking into account the need for efficiency and effectiveness in
decisionmaking and operations and the requirements for technical
competency in the development of organization standards;
`(ii) ensure openness, a balancing of interests, and due process;
and
`(iii) includes alternative procedures to be followed in
emergencies;
`(H) has established fair and impartial procedures for implementation
and enforcement of organization standards, either directly or through
delegation to an affiliated regional reliability entity, including the
imposition of penalties, limitations on activities, functions, or
operations, or other appropriate sanctions;
`(I) has established procedures for notice and opportunity for public
observation of all meetings, except that the procedures for public
observation may include alternative procedures for emergencies or for the
discussion of information that the directors reasonably determine should
take place in closed session, such as litigation, personnel actions, or
commercially sensitive information;
`(J) provides for the consideration of recommendations of States and
State commissions; and
`(K) addresses other matters that the Commission considers appropriate
to ensure that the procedures, governance, and funding of the electric
reliability organization are just, reasonable, not unduly discriminatory
or preferential, and in the public interest.
`(5) EXCLUSIVE DESIGNATION-
`(A) IN GENERAL- The Commission shall designate only 1 electric
reliability organization.
`(B) MULTIPLE APPLICATIONS- If the Commission receives 2 or more
timely applications that satisfy the requirements of this subsection, the
Commission shall approve only the application that the Commission
determines will best implement this section.
`(e) ORGANIZATION STANDARDS-
`(1) SUBMISSION OF PROPOSALS TO COMMISSION-
`(A) IN GENERAL- The electric reliability organization shall submit to
the Commission proposals for any new or modified organization
standards.
`(B) CONTENTS- A proposal submitted under subparagraph (A) shall
include--
`(i) a concise statement of the purpose of the proposal;
and
`(ii) a record of any proceedings conducted with respect to the
proposal.
`(2) REVIEW BY THE COMMISSION-
`(A) NOTICE AND COMMENT- The Commission shall--
`(i) provide notice of a proposal under paragraph (1);
and
`(ii) allow interested persons 30 days to submit comments on the
proposal.
`(B) ACTION BY THE COMMISSION-
`(i) IN GENERAL- After taking into consideration any submitted
comments, the Commission shall approve or disapprove a proposed
organization standard not later than the end of the 60-day period
beginning on the date of the deadline for the submission of comments,
except that the Commission may extend the 60-day period for an
additional 90 days for good cause.
`(ii) FAILURE TO ACT- If the Commission does not approve or
disapprove a proposal within the period specified in clause (i), the
proposed organization standard shall go into effect subject to its
terms, without prejudice to the authority of the Commission to modify
the organization standard in accordance with the standards and
requirements of this section.
`(C) EFFECTIVE DATE- An organization standard approved by the
Commission shall take effect not earlier than 30 days after the date of
the Commission's order of approval.
`(D) STANDARDS FOR APPROVAL-
`(i) IN GENERAL- The Commission shall approve a proposed new or
modified organization standard if the Commission determines the
organization standard to be just, reasonable, not unduly discriminatory
or preferential, and in the public interest.
`(ii) CONSIDERATIONS- In the exercise of its review responsibilities
under this subsection, the Commission--
`(I) shall give due weight to the technical expertise of the
electric reliability organization with respect to the content of a new
or modified organization standard; but
`(II) shall not defer to the electric reliability organization
with respect to the effect of the organization standard on
competition.
`(E) REMAND- A proposed organization standard that is disapproved in
whole or in part by the Commission shall be remanded to the electric
reliability organization for further consideration.
`(3) ORDERS TO DEVELOP OR MODIFY ORGANIZATION STANDARDS- The Commission,
on complaint or on motion of the Commission, may order the electric
reliability organization to develop and
submit to the Commission, by a date specified in the order, an organization
standard or modification to an existing organization standard to address a
specific matter if the Commission considers a new or modified organization
standard appropriate to carry out this section, and the electric reliability
organization shall develop and submit the organization standard or modification
to the Commission in accordance with this subsection.
`(4) VARIANCES AND ENTITY RULES-
`(A) PROPOSAL- An affiliated regional reliability entity may propose a
variance or entity rule to the electric reliability organization.
`(B) EXPEDITED CONSIDERATION- If expedited consideration is necessary
to provide for bulk-power system reliability, the affiliated regional
reliability entity may--
`(i) request that the electric reliability organization expedite
consideration of the proposal; and
`(ii) file a notice of the request with the Commission.
`(i) IN GENERAL- If the electric reliability organization fails to
adopt the variance or entity rule, in whole or in part, the affiliated
regional reliability entity may request that the Commission review the
proposal.
`(ii) ACTION BY THE COMMISSION- If the Commission determines, after
a review of the request, that the action of the electric reliability
organization did not conform to the applicable standards and procedures
approved by the Commission, or if the Commission determines that the
variance or entity rule is just, reasonable, not unduly discriminatory
or preferential, and in the public interest and that the electric
reliability organization has unreasonably rejected or failed to act on
the proposal, the Commission may--
`(I) remand the proposal for further consideration by the electric
reliability organization; or
`(II) order the electric reliability organization or the
affiliated regional reliability entity to develop a variance or entity
rule consistent with that requested by the affiliated regional
reliability entity.
`(D) PROCEDURE- A variance or entity rule proposed by an affiliated
regional reliability entity shall be submitted to the electric reliability
organization for review and submission to the Commission in accordance
with the procedures specified in paragraph (2).
`(5) IMMEDIATE EFFECTIVENESS-
`(A) IN GENERAL- Notwithstanding any other provision of this
subsection, a new or modified organization standard shall take effect
immediately on submission to the Commission without notice or comment if
the electric reliability organization--
`(i) determines that an emergency exists requiring that the new or
modified organization standard take effect immediately without notice or
comment;
`(ii) notifies the Commission as soon as practicable after making
the determination;
`(iii) submits the new or modified organization standard to the
Commission not later than 5 days after making the determination;
and
`(iv) includes in the submission an explanation of the need for
immediate effectiveness.
`(B) NOTICE AND COMMENT- The Commission shall--
`(i) provide notice of the new or modified organization standard or
amendment for comment; and
`(ii) follow the procedures set out in paragraphs (2) and (3) for
review of the new or modified organization standard.
`(6) COMPLIANCE- Each bulk power system user shall comply with an
organization standard that takes effect under this section.
`(f) COORDINATION WITH CANADA AND MEXICO-
`(1) RECOGNITION- The electric reliability organization shall take all
appropriate steps to gain recognition in Canada and Mexico.
`(2) INTERNATIONAL AGREEMENTS-
`(A) IN GENERAL- The President shall use best efforts to enter into
international agreements with the appropriate governments of Canada and
Mexico to provide for--
`(i) effective compliance with organization standards;
and
`(ii) the effectiveness of the electric reliability organization in
carrying out its mission and responsibilities.
`(B) COMPLIANCE- All actions taken by the electric reliability
organization, an affiliated regional reliability entity, and the
Commission shall be consistent with any international agreement under
subparagraph (A).
`(g) CHANGES IN PROCEDURE, GOVERNANCE, OR FUNDING-
`(1) SUBMISSION TO THE COMMISSION- The electric reliability organization
shall submit to the Commission--
`(A) any proposed change in a procedure, governance, or funding
provision; or
`(B) any change in an affiliated regional reliability entity's
procedure, governance, or funding provision relating to delegated
functions.
`(2) CONTENTS- A submission under paragraph (1) shall include an
explanation of the basis and purpose for the change.
`(A) CHANGES IN PROCEDURE-
`(i) CHANGES CONSTITUTING A STATEMENT OF POLICY, PRACTICE, OR
INTERPRETATION- A proposed change in procedure shall take effect 90 days
after submission to the Commission if the change constitutes a statement
of policy, practice, or interpretation with respect to the meaning or
enforcement of the procedure.
`(ii) OTHER CHANGES- A proposed change in procedure other than a
change described in clause (i) shall take effect on a finding by the
Commission, after notice and opportunity for comment, that the
change--
`(I) is just, reasonable, not unduly discriminatory or
preferential, and in the public interest; and
`(II) satisfies the requirements of subsection
(d)(4).
`(B) CHANGES IN GOVERNANCE OR FUNDING- A proposed change in governance
or funding shall not take effect unless the Commission finds that the
change--
`(i) is just, reasonable, not unduly discriminatory or preferential,
and in the public interest; and
`(ii) satisfies the requirements of subsection (d)(4).
`(A) IN GENERAL- The Commission, on complaint or on the motion of the
Commission, may require the electric reliability organization to amend a
procedural, governance, or funding provision if the Commission determines
that the amendment is necessary to meet the requirements of this
section.
`(B) FILING- The electric reliability organization shall submit the
amendment in accordance with paragraph (1).
`(h) DELEGATIONS OF AUTHORITY-
`(A) IMPLEMENTATION AND ENFORCEMENT OF COMPLIANCE- At the request of
an entity, the electric reliability organization shall enter into an
agreement with the entity for the delegation of authority to implement and
enforce compliance with organization standards in a specified geographic
area if the electric reliability organization finds that--
`(i) the entity satisfies the requirements of subparagraphs (A),
(B), (C), (D), (F), (J), and (K) of subsection (d)(4); and
`(ii) the delegation would promote the effective and efficient
implementation and administration of bulk-power system
reliability.
`(B) OTHER AUTHORITY- The electric reliability organization may enter
into an agreement to delegate to an entity any other authority, except
that the electric reliability organization shall reserve the right to set
and approve standards for bulk-power system reliability.
`(2) APPROVAL BY THE COMMISSION-
`(A) SUBMISSION TO THE COMMISSION- The electric reliability
organization shall submit to the Commission--
`(i) any agreement entered into under this subsection;
and
`(ii) any information the Commission requires with respect to the
affiliated regional reliability entity to which authority is
delegated.
`(B) STANDARDS FOR APPROVAL- The Commission shall approve the
agreement, following public notice and an opportunity for comment, if the
Commission finds that the agreement--
`(i) meets the requirements of paragraph (1); and
`(ii) is just, reasonable, not unduly discriminatory or
preferential, and in the public interest.
`(C) REBUTTABLE PRESUMPTION- A proposed delegation agreement with an
affiliated regional reliability entity organized on an
interconnection-wide basis shall be rebuttably presumed by the Commission
to promote the effective and efficient implementation and administration
of the reliability of the bulk-power system.
`(D) INVALIDITY ABSENT APPROVAL- No delegation by the electric
reliability organization shall be valid unless the delegation is approved
by the Commission.
`(3) PROCEDURES FOR ENTITY RULES AND VARIANCES-
`(A) IN GENERAL- A delegation agreement under this subsection shall
specify the procedures by which the affiliated regional reliability entity
may propose entity rules or variances for review by the electric
reliability organization.
`(B) INTERCONNECTION-WIDE ENTITY RULES AND VARIANCES- In the case of a
proposal for an entity rule or variance that would apply on an
interconnection-wide basis, the electric reliability organization shall
approve the entity rule or variance unless the electric reliability
organization makes a written finding that the entity rule or
variance--
`(i) was not developed in a fair and open process that provided an
opportunity for all interested parties to participate;
`(ii) would have a significant adverse impact on reliability or
commerce in other interconnections;
`(iii) fails to provide a level of reliability of the bulk-power
system within the interconnection such that the entity rule or variance
would be likely to cause a serious
and substantial threat to public health, safety, welfare, or national
security; or
`(iv) would create a serious and substantial burden on competitive
markets within the interconnection that is not necessary for
reliability.
`(C) NONINTERCONNECTION-WIDE ENTITY RULES AND VARIANCES- In the case
of a proposal for an entity rule or variance that would apply only to part
of an interconnection, the electric reliability organization shall approve
the entity rule or variance if the affiliated regional reliability entity
demonstrates that the proposal--
`(i) was developed in a fair and open process that provided an
opportunity for all interested parties to participate;
`(ii) would not have an adverse impact on commerce that is not
necessary for reliability;
`(iii) provides a level of bulk-power system reliability that is
adequate to protect public health, safety, welfare, and national
security and would not have a significant adverse impact on reliability;
and
`(iv) in the case of a variance, is based on a justifiable
difference between regions or subregions within the affiliated regional
reliability entity's geographic area.
`(D) ACTION BY THE ELECTRIC RELIABILITY ORGANIZATION-
`(i) IN GENERAL- The electric reliability organization shall approve
or disapprove a proposal under subparagraph (A) within 120 days after
the proposal is submitted.
`(ii) FAILURE TO ACT- If the electric reliability organization fails
to act within the time specified in clause (i), the proposal shall be
deemed to have been approved.
`(iii) SUBMISSION TO THE COMMISSION- After approving a proposal
under subparagraph (A), the electric reliability organization shall
submit the proposal to the Commission for approval under the procedures
prescribed under subsection (e).
`(E) DIRECT SUBMISSIONS- An affiliated regional reliability entity may
not submit a proposal for approval directly to the Commission except as
provided in subsection (e)(4).
`(4) FAILURE TO REACH DELEGATION AGREEMENT-
`(A) IN GENERAL- If an affiliated regional reliability entity
requests, consistent with paragraph (1), that the electric reliability
organization delegate authority to it, but is unable within 180 days to
reach agreement with the electric reliability organization with respect to
the requested delegation, the entity may seek relief from the
Commission.
`(B) REVIEW BY THE COMMISSION- The Commission shall order the electric
reliability organization to enter into a delegation agreement under terms
specified by the Commission if, after notice and opportunity for comment,
the Commission determines that--
`(i) a delegation to the affiliated regional reliability entity
would--
`(I) meet the requirements of paragraph (1); and
`(II) would be just, reasonable, not unduly discriminatory or
preferential, and in the public interest; and
`(ii) the electric reliability organization unreasonably withheld
the delegation.
`(5) ORDERS TO MODIFY DELEGATION AGREEMENTS-
`(A) IN GENERAL- On complaint, or on motion of the Commission, after
notice to the appropriate affiliated regional reliability entity, the
Commission may order the electric reliability organization to propose a
modification to a delegation agreement under this subsection if the
Commission determines that--
`(i) the affiliated regional reliability entity--
`(I) no longer has the capacity to carry out effectively or
efficiently the implementation or enforcement responsibilities under
the delegation agreement;
`(II) has failed to meet its obligations under the delegation
agreement; or
`(III) has violated this section;
`(ii) the rules, practices, or procedures of the affiliated regional
reliability entity no longer provide for fair and impartial discharge of
the implementation or enforcement responsibilities under the delegation
agreement;
`(iii) the geographic boundary of a transmission entity approved by
the Commission is not wholly within the boundary of an affiliated
regional reliability entity, and the difference in boundaries is
inconsistent with the effective and efficient implementation and
administration of bulk-power system reliability; or
`(iv) the agreement is inconsistent with a delegation ordered by the
Commission under paragraph (4).
`(i) IN GENERAL- Following an order to modify a delegation agreement
under subparagraph (A), the Commission may suspend the delegation
agreement if the electric reliability organization or the affiliated
regional reliability entity does not
propose an appropriate and timely modification.
`(ii) ASSUMPTION OF RESPONSIBILITIES- If a delegation agreement is
suspended, the electric reliability organization shall assume the
responsibilities delegated under the delegation agreement.
`(i) ORGANIZATION MEMBERSHIP- Each system operator shall be a member
of--
`(1) the electric reliability organization; and
`(2) any affiliated regional reliability entity operating under an
agreement effective under subsection (h) applicable to the region in which
the system operator operates, or is responsible for the operation of, a
transmission facility.
`(1) DISCIPLINARY ACTIONS-
`(A) IN GENERAL- Consistent with procedures approved by the Commission
under subsection (d)(4)(H), the electric reliability organization may
impose a penalty, limitation on activities, functions, or operations, or
other disciplinary action that the electric reliability organization finds
appropriate against a bulk-power system user if the electric reliability
organization, after notice and an opportunity for interested parties to be
heard, issues a finding in writing that the bulk-power system user has
violated an organization standard.
`(B) NOTIFICATION- The electric reliability organization shall
immediately notify the Commission of any disciplinary action imposed with
respect to an act or failure to act of a bulk-power system user that
affected or threatened to affect bulk-power system facilities located in
the United States.
`(C) RIGHT TO PETITION- A bulk-power system user that is the subject
of disciplinary action under paragraph (1) shall have the right to
petition the Commission for a modification or rescission of the
disciplinary action.
`(D) INJUNCTIONS- If the electric reliability organization finds it
necessary to prevent a serious threat to reliability, the electric
reliability organization may seek injunctive relief in the United States
district court for the district in which the affected facilities are
located.
`(i) IN GENERAL- Unless the Commission, on motion of the Commission
or on application by the bulk-power system user that is the subject of
the disciplinary action, suspends the effectiveness of a disciplinary
action, the disciplinary action shall take effect on the 30th day after
the date on which--
`(I) the electric reliability organization submits to the
Commission--
`(aa) a written finding that the bulk-power system user violated an
organization standard; and
`(bb) the record of proceedings before the electric reliability
organization; and
`(II) the Commission posts the written finding on the
Internet.
`(ii) DURATION- A disciplinary action shall remain in effect or
remain suspended unless the Commission, after notice and opportunity for
hearing, affirms, sets aside, modifies, or reinstates the disciplinary
action.
`(iii) EXPEDITED CONSIDERATION- The Commission shall conduct the
hearing under procedures established to ensure expedited consideration
of the action taken.
`(2) COMPLIANCE ORDERS- The Commission, on complaint by any person or on
motion of the Commission, may order compliance with an organization standard
and may impose a penalty, limitation on activities, functions, or
operations, or take such other disciplinary action as the Commission finds
appropriate, against a bulk-power system user with respect to actions
affecting or threatening to affect bulk-power system facilities located in
the United States if the Commission finds, after notice and opportunity for
a hearing, that the bulk-power system user has violated or threatens to
violate an organization standard.
`(3) OTHER ACTIONS- The Commission may take such action as is necessary
against the electric reliability organization or an affiliated regional
reliability entity to ensure compliance with an organization standard, or
any Commission order affecting electric reliability organization or
affiliated regional reliability entity.
`(k) RELIABILITY REPORTS- The electric reliability organization shall--
`(1) conduct periodic assessments of the reliability and adequacy of the
interconnected bulk-power system in North America; and
`(2) report annually to the Secretary of Energy and the Commission its
findings and recommendations for monitoring or improving system reliability
and adequacy.
`(l) ASSESSMENT AND RECOVERY OF CERTAIN COSTS-
`(1) IN GENERAL- The reasonable costs of the electric reliability
organization, and the reasonable costs of each affiliated regional
reliability entity that are related to implementation or enforcement of
organization standards or other requirements contained in a delegation
agreement approved under subsection (h), shall be assessed by the electric
reliability organization and each affiliated regional reliability entity,
respectively, taking into account the relationship of costs to each region
and based on an allocation that reflects an equitable sharing of the costs
among all electric energy consumers.
`(2) RULES- The Commission shall provide by rule for the review of costs
and allocations under paragraph (1) in accordance with the standards in this
subsection and subsection (d)(4)(F).
`(m) APPLICATION OF ANTITRUST LAWS-
`(1) IN GENERAL- Notwithstanding any other provision of law, the
following activities are rebuttably presumed to be in compliance with the
antitrust laws of the United States:
`(A) Activities undertaken by the electric reliability organization
under this section or affiliated regional reliability entity operating
under a delegation agreement under subsection (h).
`(B) Activities of a member of the electric reliability organization
or affiliated regional reliability entity in pursuit of the objectives of
the electric reliability organization or affiliated regional reliability
entity under this section undertaken in good faith under the rules of the
organization of the electric reliability organization or affiliated
regional reliability entity.
`(2) AVAILABILITY OF DEFENSES- In a civil action brought by any person
or entity against the electric reliability organization or an affiliated
regional reliability entity alleging a violation of an antitrust law based
on an activity under this Act, the defenses of primary jurisdiction and
immunity from suit and other affirmative defenses shall be available to the
extent applicable.
`(n) REGIONAL ADVISORY ROLE-
`(1) ESTABLISHMENT OF REGIONAL ADVISORY BODY- The Commission shall
establish a regional advisory body on the petition of the Governors of at
least two-thirds of the States within a region that have more than one-half
of their electrical loads served within the region.
`(2) MEMBERSHIP- A regional advisory body--
`(A) shall be composed of 1 member from each State in the region,
appointed by the Governor of the State; and
`(B) may include representatives of agencies, States, and Provinces
outside the United States, on execution of an appropriate international
agreement described in subsection (f).
`(3) FUNCTIONS- A regional advisory body may provide advice to the
electric reliability organization, an affiliated regional reliability
entity, or the Commission regarding--
`(A) the governance of an affiliated regional reliability entity
existing or proposed within a region;
`(B) whether a standard proposed to apply within the region is just,
reasonable, not unduly discriminatory or preferential, and in the public
interest; and
`(C) whether fees proposed to be assessed within the region
are--
`(i) just, reasonable, not unduly discriminatory or preferential,
and in the public interest; and
`(ii) consistent with the requirements of subsection
(l).
`(4) DEFERENCE- In a case in which a regional advisory body encompasses
an entire interconnection, the Commission may give deference to advice
provided by the regional advisory body under paragraph (3).
`(o) APPLICABILITY OF SECTION- This section does not apply outside the 48
contiguous States.
`(p) REHEARINGS; COURT REVIEW OF ORDERS- Section 313 applies to an order
of the Commission issued under this section.'.
(1) GENERAL PENALTIES- Section 316(c) of the Federal Power Act (16
U.S.C. 825o(c)) is amended--
(A) by striking `subsection' and inserting `section'; and
(B) by striking `or 214' and inserting `214 or 215'.
(2) CERTAIN PROVISIONS- Section 316A of the Federal Power Act (16 U.S.C.
825o-1) is amended by striking `or 214' each place it appears and inserting
`214, or 215'.
(c) SAVINGS CLAUSE- [RESERVED]
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