Mandates that: (1) the Organization act to gain recognition in Canada and Mexico; and (2) the United States use its best efforts to enter into international agreements with those countries to effectuate compliance with Organization standards, and to promote the Organization's mission.
Requires every system operator to be a member of the electric reliability organization and of any Affiliated Regional Reliability Entity pertinent to the region in which the system operator either operates, or is responsible for the operation of a bulk-power system facility.
Grants the Organization disciplinary and enforcement powers. Provides for the assessment and recovery of implementation and enforcement costs incurred by the Organization and each Affiliated Regional Reliability Entity, respectively.
Directs the Commission, upon the petition of two-thirds of the States within a region that have more than one-half of their electric loan served within such region, to establish a regional advisory body to advise on: (1) the governance of an existing or proposed affiliated regional reliability entity; and (2) whether a proposed organization standard, entity rule, variance, or assessment fee is just, reasonable, not unduly discriminatory or preferential, and in the public interest.
[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 312 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 312
To amend the Federal Power Act to provide for the reliability of the
electric power transmission system in the United States, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 30, 2001
Mr. Wynn (for himself, Mr. Shadegg, Ms. Eshoo, and Mr. Ehrlich)
introduced the following bill; which was referred to the Committee on
Energy and Commerce
_______________________________________________________________________
A BILL
To amend the Federal Power Act to provide for the reliability of the
electric power transmission system in the United States, and for other
purposes.
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 ``National Electricity Reliability
Act''.
SEC. 2. ELECTRIC ENERGY TRANSMISSION RELIABILITY.
(a) Electric Reliability Organization and Oversight.--
(1) In general.--The Federal Power Act is amended by adding
the following new section after section 214:
``SEC. 215. ELECTRIC RELIABILITY ORGANIZATION AND OVERSIGHT.
``(a) Definitions.--As used in this section:
``(1) Affiliated regional reliability entity.--The term
`affiliated regional reliability entity' means an entity
delegated authority under the provisions of subsection (h).
``(2) Bulk-power system.--The term `bulk-power system'
means all facilities and control systems necessary for
operating an interconnected transmission grid (or any portion
thereof), including high-voltage transmission lines;
substations; control centers; communications; data, and
operations planning facilities; and the output of generating
units necessary to maintain transmission system reliability.
``(3) Electric reliability organization, or organization.--
The term `Electric Reliability Organization' or `Organization'
means the organization approved by the Commission under
subsection (d)(4).
``(4) 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 one or
more Organization Standards. An entity rule shall be approved
by the organization and once approved, shall be treated as an
Organization Standard.
``(5) Industry sector.--The term `industry sector' means a
group of users of the bulk power system with substantially
similar commercial interests, as determined by the Board of the
Electric Reliability Organization.
``(6) Interconnection.--The term `interconnection' means a
geographic area in which the operation of bulk-power system
components is synchronized such that the failure of one or more
of such 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.
``(7) Organization standard.--The term `Organization
Standard' means a policy or standard duly adopted by the
Electric Reliability Organization to provide for the reliable
operation of a bulk-power system.
``(8) Public interest group.--The term `public interest
group' means any nonprofit private or public organization that
has an interest in the activities of the Electric Reliability
Organization, including, but not limited to, ratepayer
advocates, environmental groups, and State and local government
organizations that regulate market participants and promulgate
government policy.
``(9) Variance.--The term `variance' means an exception or
variance from the requirements of an Organization Standard
(including a proposal for an Organization Standard where there
is no Organization Standard) that is adopted by an affiliated
regional reliability entity and applicable to all or a part of
the region for which the affiliated regional reliability entity
is responsible. A variance shall be approved by the
organization and once approved, shall be treated as an
Organization Standard.
``(10) System operator.--The term `system operator' means
any entity that operates or is responsible for the operation of
a bulk-power system, including but not limited to a control
area operator, an independent system operator, a regional
transmission organization, a transmission company, a
transmission system operator, or a regional security
coordinator.
``(11) User of the bulk-power system.--The term `user of
the bulk-power system' means any entity that sells, purchases,
or transmits electric power over a bulk-power system, or that
owns, operates, or maintains facilities or control systems that
are part of a bulk-power system, or that is a system operator.
``(b) Commission Authority.--(1) Within the United States, the
Commission shall have jurisdiction over the Electric Reliability
Organization, all affiliated regional reliability entities, all system
operators, and all users of the bulk-power system, for purposes of
approving and enforcing compliance with the requirements of this
section.
``(2) The Commission may, by rule, define any other term used in
this section, provided such definition is consistent with the
definitions in, and the purpose and intent of, this Act.
``(3) Not later than 90 days after the date of enactment of this
section, the Commission shall issue a proposed rule for implementing
the requirements of this section. The Commission shall provide notice
and opportunity for comment on the proposed rule. The Commission
shall issue a final rule under this subsection within 180 days after
the date of enactment of this section.
``(4) Nothing in this section shall be construed as limiting or
impairing any authority of the Commission under any other provision of
this Act, including its exclusive authority to determine rates, terms,
and conditions of transmission services subject to its jurisdiction.
``(c) Existing Reliability Standards.--Following enactment of this
section, and prior to the approval of an organization under subsection
(d), any entity, including the North American Electric Reliability
Council and its member regional reliability councils, may file any
reliability standard, guidance, or practice that such entity would
propose to be made mandatory and enforceable. The Commission, after
allowing an opportunity to submit comments, may approve any such
proposed mandatory standard, guidance, or practice, or any amendment
thereto, if it finds that the standard, guidance, or practice, or
amendment is just, reasonable, not unduly discriminatory or
preferential, and in the public interest. The Commission may, without
further proceeding or finding, grant its approval to any standard,
guidance, or practice for which no substantive objections are filed in
the comment period. Filed standards, guidances, or practices, including
any amendments thereto, shall be mandatory and applicable according to
their terms following approval by the Commission and shall remain in
effect until (1) withdrawn, disapproved, or superseded by an
Organization Standard, issued or approved by the Electric Reliability
Organization and made effective by the Commission under subsection (e);
or (2) disapproved by the Commission if, upon complaint or upon its own
motion and after notice and an opportunity for comment, the Commission
finds the standard, guidance, or practice unjust, unreasonable, unduly
discriminatory, or preferential or not in the public interest.
Standards, guidances, or practices in effect pursuant to the provisions
of this subsection shall be enforceable by the Commission.
``(d) Organization Approval.--(1) Following the issuance of a final
Commission rule under subsection (b)(3), an entity may submit an
application to the Commission for approval as the Electric Reliability
Organization. The applicant shall specify in its application its
governance and procedures, as well as its funding mechanism and initial
funding requirements.
``(2) The Commission shall provide public notice of the application
and afford interested parties an opportunity to comment.
``(3) The Commission shall approve the application 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
the bulk-power system;
``(B) permits voluntary membership to any user of the bulk-
power system or public interest group;
``(C) assures 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) assures that no two industry sectors have the ability
to control, and no one industry sector has the ability to veto,
the Electric Reliability Organization's discharge of its
responsibilities (including actions by committees recommending
standards to 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
are just, reasonable, and not unduly discriminatory or
preferential and are in the public interest, and which satisfy
the requirements of subsection (l);
``(G) establishes procedures for development of
Organization Standards that 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, and which standards
development process has the following attributes:
``(i) openness,
``(ii) balance of interests, and
``(iii) due process, except that the procedures may
include alternative procedures for emergencies;
``(H) establishes 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) establishes 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 the directors
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 may deem
necessary or appropriate to ensure that the procedures,
governance, and funding of the Electric Reliability
Organization are just, reasonable, not unduly discriminatory or
preferential, and are in the public interest.
``(4) The Commission shall approve only one Electric Reliability
Organization. If the Commission receives two or more timely
applications that satisfy the requirements of this subsection, the
Commission shall approve only the application it concludes will best
implement the provisions of this section.
``(e) Establishment of and Modifications to Organization
Standards.--(1) The Electric Reliability Organization shall file with
the Commission any new or modified organization standards, including
any variances or entity rules, and the Commission shall follow the
procedures under paragraph (2) for review of that filing.
``(2) Submissions under paragraph (1) shall include--
``(A) a concise statement of the purpose of the proposal,
and
``(B) a record of any proceedings conducted with respect to
such proposal.
The Commission shall provide notice of the filing of such proposal and
afford interested entities 30 days to submit comments. The Commission,
after taking into consideration any submitted comments, shall approve
or disapprove such proposal not later than 60 days after 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, and except
further that if the Commission does not act to approve or disapprove a
proposal within the foregoing periods, the proposal shall go into
effect subject to its terms, without prejudice to the authority of the
Commission thereafter to modify the proposal in accordance with the
standards and requirements of this section. Proposals approved by the
Commission shall take effect according to their terms but not earlier
than 30 days after the effective date of the Commission's order, except
as provided in paragraph (3) of this subsection.
``(3)(A) In the exercise of its review responsibilities under this
subsection, the Commission 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 shall not defer
to the organization with respect to the effect of the standard on
competition. The Commission shall approve a proposed new or modified
organization standard if it determines the proposal to be just,
reasonable, not unduly discriminatory or preferential, and in the
public interest.
``(B) An existing or proposed organization standard which is
disapproved in whole or in part by the Commission shall be remanded to
the Electric Reliability Organization for further consideration.
``(C) The Commission, on its own motion or upon complaint, may
direct the Electric Reliability Organization to develop an organization
standard, including modification to an existing organization standard,
addressing a specific matter by a date certain if the Commission
considers such new or modified organization standard necessary or
appropriate to further the purposes of this section. The Electric
Reliability Organization shall file any such new or modified
organization standard in accordance with this subsection.
``(D) An affiliated regional reliability entity may propose a
variance or entity rule to the Electric Reliability Organization. The
affiliated regional reliability entity may request that the Electric
Reliability Organization expedite consideration of the proposal, and
may file a notice of such request with the Commission, if expedited
consideration is necessary to provide for bulk-power system
reliability. If the Electric Reliability Organization fails to adopt
the variance or entity rule, either in whole or in part, the affiliated
regional reliability entity may request that the Commission review such
action. If the Commission determines, after its review of such a
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 the proposed variance or entity
rule, then the Commission may remand the proposed variance or entity
rule for further consideration by the Electric Reliability Organization
or may direct 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. Any such variance or entity rule proposed by an affiliated
regional reliability entity shall be submitted to the Electric
Reliability Organization for review and filing with the Commission in
accordance with the procedures specified in this subsection.
``(E) Notwithstanding any other provision of this subsection, a
proposed organization standard or amendment shall take effect according
to its terms if the Electric Reliability Organization determines that
an emergency exists requiring that such proposed organization standard
or amendment take effect without notice or comment. The Electric
Reliability Organization shall notify the Commission immediately
following such determination and shall file such emergency organization
standard or amendment with the Commission not later than 5 days
following such determination and shall include in such filing an
explanation of the need for such emergency standard. Subsequently, the
Commission shall provide notice of the organization standard or
amendment for comment, and shall follow the procedures set out in
paragraphs (2) and (3) for review of the new or modified organization
standard.
``(4) All users of the bulk-power system shall comply with any
organization standard that takes effect under this section.
``(f) Coordination With Canada and Mexico.--The Electric
Reliability Organization shall take all appropriate steps to gain
recognition in Canada and Mexico. The United States shall use its best
efforts to enter into international agreements with the appropriate
governments of Canada and Mexico to provide for effective compliance
with organization standards and to provide for the effectiveness of the
Electric Reliability Organization in carrying out its mission and
responsibilities. All actions taken by the Electric Reliability
Organization, any affiliated regional reliability entity, and the
Commission shall be consistent with the provisions of such
international agreements.
``(g) Changes in Procedures, Governance, or Funding.--(1) The
Electric Reliability Organization shall file with the Commission any
proposed change in its procedures, governance, or funding, or any
changes in the affiliated regional reliability entity's procedures,
governance, or funding relating to delegated functions, and shall
include with the filing an explanation of the basis and purpose for the
change.
``(2) A proposed procedural change may take effect 90 days after
filing with the Commission if the change constitutes a statement of
policy, practice, or interpretation with respect to the meaning or
enforcement of an existing procedure. Otherwise, a proposed procedural
change shall take effect only upon a finding by the Commission, after
notice and opportunity for comments, that the change is just,
reasonable, not unduly discriminatory or preferential, is in the public
interest, and satisfies the requirements of subsection (d)(4).
``(3) A change in governance or funding shall not take effect
unless the Commission finds that the change is just, reasonable, not
unduly discriminatory or preferential, in the public interest, and
satisfies the requirements of subsection (d)(4).
``(4) The Commission, upon complaint or upon its own motion, may
require the Electric Reliability Organization to amend the procedures,
governance, or funding if the Commission determines that the amendment
is necessary to meet the requirements of this section. The Electric
Reliability Organization shall file the amendment in accordance with
paragraph (1) of this subsection.
``(h) Delegations of Authority.--(1) The Electric Reliability
Organization shall, upon request by an entity, enter into an agreement
with such entity for the delegation of authority to implement and
enforce compliance with organization standards in a specified
geographic area if the organization finds that the entity requesting
the delegation satisfies the requirements of subparagraphs (A), (B),
(C), (D), (F), (J), and (K) of subsection (d)(4), and if the delegation
promotes the effective and efficient implementation and administration
of bulk-power system reliability. The Electric Reliability Organization
may enter into an agreement to delegate to the 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) The Electric Reliability Organization shall file with the
Commission any agreement entered into under this subsection and any
information the Commission requires with respect to the affiliated
regional reliability entity to which authority is to be delegated. The
Commission shall approve the agreement, following public notice and an
opportunity for comment, if it finds that the agreement meets the
requirements of paragraph (1), and is just, reasonable, not unduly
discriminatory or preferential, and is in the public interest. 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 bulk-power system reliability. No
delegation by the Electric Reliability Organization shall be valid
unless approved by the Commission.
``(3)(A) A delegation agreement entered into under this subsection
shall specify the procedures for an affiliated regional reliability
entity to propose entity rules or variances for review by the Electric
Reliability Organization. With respect to any such proposal that would
apply on an interconnection-wide basis, the Electric Reliability
Organization shall presume such proposal valid if made by an
interconnection-wide affiliated regional reliability entity unless the
Electric Reliability Organization makes a written finding that the
proposal--
``(i) was not developed in a fair and open process that
provided an opportunity for all interested parties to
participate;
``(ii) has 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 it would
constitute a serious and substantial threat to public health,
safety, welfare, or national security; or
``(iv) creates a serious and substantial burden on
competitive markets within the interconnection that is not
necessary for reliability.
``(B) With respect to any such proposal that would apply only to
part of an interconnection, the Electric Reliability Organization shall
find such proposal valid if the affiliated regional reliability entity
or entities making the proposal demonstrate that it--
``(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
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 legitimate
differences between regions or between subregions within the
affiliated regional reliability entity's geographic area.
The Electric Reliability Organization shall approve or disapprove such
proposal within 120 days, or the proposal shall be deemed approved.
Following approval of any such proposal under this paragraph, the
Electric Reliability Organization shall seek Commission approval
pursuant to the procedures prescribed under subsection (e)(3).
Affiliated regional reliability entities may not make requests for
approval directly to the Commission except pursuant to subsection
(e)(3)(D).
``(4) If an affiliated regional reliability entity requests,
consistent with paragraph (1) of this subsection, 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 such requested delegation, such entity may seek relief
from the Commission. If, following notice and opportunity for comment,
the Commission determines that a delegation to the entity would meet
the requirements of paragraph (1) above, and that the delegation would
be just, reasonable, not unduly discriminatory or preferential, and in
the public interest, and that the Electric Reliability Organization has
unreasonably withheld such delegation, the Commission may, by order,
direct the Electric Reliability Organization to make such delegation.
``(5)(A) The Commission may, upon its own motion or upon complaint,
and with notice to the appropriate affiliated regional reliability
entity or entities, direct the Electric Reliability Organization to
propose a modification to an agreement entered into under this
subsection if the Commission determines that--
``(i) the affiliated regional reliability entity no longer
has the capacity to carry out effectively or efficiently its
implementation or enforcement responsibilities under that
agreement, has failed to meet its obligations under that
agreement, or has violated any provision of this section;
``(ii) the rules, practices, or procedures of the
affiliated regional reliability entity no longer provide for
fair and impartial discharge of its implementation or
enforcement responsibilities under the 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 such difference
is inconsistent with the effective and efficient implementation
and administration of bulk-power system reliability; or
``(iv) the agreement is inconsistent with another
delegation agreement as a result of actions taken under
paragraph (4) of this subsection.
``(B) Following an order of the Commission issued under
subparagraph (A), the Commission may suspend the affected agreement if
the Electric Reliability Organization or the affiliated regional
reliability entity does not propose an appropriate and timely
modification. If the agreement is suspended, the Electric Reliability
Organization shall assume the previously delegated responsibilities.
The Commission shall allow the Electric Reliability Organization and
the affiliated regional reliability entity an opportunity to appeal the
suspension.
``(i) Organization Membership.--Every system operator shall be
required to be a member of the Electric Reliability Organization and
shall be required also to be a member of any affiliated regional
reliability entity operating under an agreement effective pursuant to
subsection (h) applicable to the region in which the system operator
operates or is responsible for the operation of bulk-power system
facilities.
``(j) Injunctions and Disciplinary Action.--(1) Consistent with the
range of actions approved by the Commission under subsection (d)(4)(H),
the Electric Reliability Organization may impose a penalty, limitation
of activities, functions, operations, or other disciplinary action the
Electric Reliability Organization finds appropriate against a user of
the bulk-power system if the Electric Reliability Organization, after
notice and an opportunity for interested parties to be heard, issues a
finding in writing that the user of the bulk-power system has violated
an organization standard. 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 user of the bulk-power
system that affected or threatened to affect bulk-power system
facilities located in the United States, and the sanctioned party shall
have the right to seek modification or rescission of such disciplinary
action by the Commission. If the organization finds it necessary to
prevent a serious threat to reliability, the organization may seek
injunctive relief in a Federal court in the district in which the
affected facilities are located.
``(2) A disciplinary action taken under paragraph (1) may take
effect not earlier than the 30th day after the Electric Reliability
Organization files with the Commission its written finding and record
of proceedings before the Electric Reliability Organization and the
Commission posts its written finding, unless the Commission, on its own
motion or upon application by the user of the bulk-power system which
is the subject of the action, suspends the action. The action shall
remain in effect or remain suspended unless and until the Commission,
after notice and opportunity for hearing, affirms, sets aside,
modifies, or reinstates the action, but the Commission shall conduct
such hearing under procedures established to ensure expedited
consideration of the action taken.
``(3) The Commission, on its own motion or on complaint, may order
compliance with an organization standard and may impose a penalty,
limitation of activities, functions, or operations, or take such other
disciplinary action as the Commission finds appropriate, against a
user of the bulk-power system 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 user of the bulk-power system has violated or
threatens to violate an organization standard.
``(4) The Commission may take such action as is necessary against
the Electric Reliability Organization or an affiliated regional
reliability entity to assure compliance with an organization standard,
or any Commission order affecting the Electric Reliability Organization
or an affiliated regional reliability entity.
``(k) Reliability Reports.--The Electric Reliability Organization
shall conduct periodic assessments of the reliability and adequacy of
the interconnected bulk-power system in North America and shall 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.--The reasonable
costs of the Electric Reliability Organization, and the reasonable
costs of each affiliated regional reliability entity that are related
to implementation and 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 end users. The Commission shall provide by rule for
the review of such costs and allocations, pursuant to the standards in
this subsection and subsection (d)(4)(F).
``(m) Savings Provisions.--(1) The Electric Reliability
Organization shall have authority to develop, implement and enforce
compliance with standards for the reliable operation of only the Bulk
Power System.
``(2) This section does not provide the Electric Reliability
Organization or the Commission with the authority to set and enforce
compliance with standards for adequacy or safety of electric facilities
or services.
``(3) Nothing in this section shall be construed to preempt any
authority of any State to take action to ensure the safety, adequacy,
and reliability of electric service within that State, as long as such
action is not inconsistent with any Organization Standard.
``(4) Within 90 days of the application of the Electric Reliability
Organization or other affected party, the Commission shall issue a
final order determining whether a state action is inconsistent with an
Organization Standard, after notice and opportunity for comment, taking
into consideration any recommendations of the Electric Reliability
Organization.
``(5) The Commission, after consultation with the Electric
Reliability Organization, may stay the effectiveness of any state
action, pending the Commission's issuance of a final order.
``(n) Regional Advisory Bodies.--The Commission shall establish a
regional advisory body on the petition of at least two-thirds of the
States within a region that have more than one-half of their electric
loan served within the region. A regional advisory body shall be
composed of one member from each participating State in the region,
appointed by the Governor of each State, and may include
representatives of agencies, States, and provinces outside the United
States, upon execution of an international agreement or agreements
described in subsection (f). A regional advisory body may provide
advice to the electric reliability organization, an affiliated regional
reliability entity, or the Commission regarding the governance of an
existing or proposed affiliated regional reliability entity within the
same region, whether an organization standard, entity rule, or variance
proposed to apply within the region is just, reasonable, not unduly
discriminatory or preferential, and in the public interest, and whether
fees proposed to be assessed within the region are just, reasonable,
not unduly discriminatory or preferential, in the public interest, and
consistent with the requirements of subsection (l). The Commission may
give deference to the advice of any such regional advisory body if that
body is organized on an interconnection-wide basis.
``(o) Coordination With Regional Transmission Organizations.--(1)
Each regional transmission organization authorized by the Commission
shall be responsible for maintaining the short-term reliability of the
bulk-power system that it operates, consistent with organization
standards.
``(2) Except as provided in paragraph (5), in connection with a
proceeding under subsection (e) to consider a proposed organization
standard, each regional transmission organization authorized by the
Commission shall report to the Commission, and notify the electric
reliability organization and any applicable affiliated regional
reliability entity, regarding whether the proposed organization
standard hinders or conflicts with that regional transmission
organization's ability to fulfill the requirements of any Commission-
accepted, approved, or ordered rule, regulation, order, tariff, rate
schedule, or agreement. Where such hindrance or conflict is identified,
the Commission shall address such hindrance or conflict, and the need
for any changes to such Commission-accepted, approved, or ordered rule,
order, tariff, rate schedule, or agreement in its order under
subsection (e) regarding the proposed standard. Where such hindrance or
conflict is identified between a proposed organization standard and a
provision of any rule, order, tariff, rate schedule or agreement
accepted, approved or ordered by the Commission applicable to a
regional transmission organization, nothing in this section shall
require a change in the regional transmission organization's obligation
to comply with such provision unless the Commission orders such a
change and the change becomes effective. If the Commission finds that
the tariff, rate schedule, or agreement needs to be changed, the
regional transmission organization must expeditiously make a section
205 filing to reflect the change. If the Commission finds that the
proposed organization standard needs to be changed, it shall remand the
proposed organization standard to the electric reliability organization
under subsection (e)(3)(B).
``(3) Except as provided in paragraph (5), to the extent hindrances
and conflicts arise after approval of a reliability standard under
subsection (c) or organization standard under subsection (e), each
regional transmission organization authorized by the Commission shall
report to the Commission, and notify the electric reliability
organization and any applicable affiliated regional reliability entity,
regarding any reliability standard approved under subsection (c) or
organization standard that hinders or conflicts with that regional
transmission organization's ability to fulfill the requirements of any
Commission-accepted, approved, or ordered rule, regulation, order,
tariff, rate schedule, or agreement. The Commission shall seek to
assure that such hindrances or conflicts are resolved promptly. Where a
hindrance or conflict is identified between a reliability standard or
an organization standard and a provision of any rule, order, tariff,
rate schedule or agreement accepted, approved or ordered by the
Commission applicable to a regional transmission organization, nothing
in this section shall require a change in the regional transmission
organization's obligation to comply with such provision unless the
Commission orders such a change and the change becomes effective. If
the Commission finds that the tariff, rate schedule or agreement needs
to be changed, the regional transmission organization must
expeditiously make a section 205 filing to reflect the change. If the
Commission finds that an organization standard needs to be changed, it
shall order the electric reliability organization to develop and submit
a modified organization standard under subsection (e)(3)(C).
``(4) An affiliated regional reliability entity and a regional
transmission organization operating in the same geographic area shall
cooperate to avoid conflicts between implementation and enforcement of
organization standards by the affiliated regional reliability entity
and implementation and enforcement of Commission-accepted tariffs, rate
schedules, and agreements by the regional transmission organization. In
areas without an affiliated regional reliability entity, the electric
reliability organization shall act as the affiliated regional
reliability entity for purposes of this paragraph.
``(5) Until 6 months after approval of applicable subsection (h)(3)
procedures, any reliability standard, guidance, or practice contained
in Commission-accepted tariffs, rate schedules, or agreements in effect
of any Commission-authorized independent system operator or regional
transmission organization shall continue to apply unless the Commission
accepts an amendment thereto by the applicable operator or
organization, or upon complaint finds them to be unjust, unreasonable,
unduly discriminatory or preferential, or not in the public interest.
At the conclusion of such transition period, any such reliability
standard, guidance, practice, or amendment thereto that the Commission
determines is inconsistent with organization standards shall no longer
apply.''.
(2) Enforcement.--Sections 316 and 316A of the Federal
Power Act are each amended by striking ``or 214'' each place it
appears and inserting ``214, or 215''.
(b) Application of Antitrust Laws.--Notwithstanding any other
provision of law, each of the following activities are rebuttably
presumed to be in compliance with the antitrust laws of the United
States:
(1) Activities undertaken by the Electric Reliability
Organization under section 215 of the Federal Power Act or
affiliated regional reliability entity operating under an
agreement in effect under section 215(h) of such Act.
(2) Activities of a member of the Electric Reliability
Organization or affiliated regional reliability entity in
pursuit of organization objectives under section 215 of the
Federal Power Act undertaken in good faith under the rules of
the organization.
Primary jurisdiction, and immunities and other affirmative defenses,
shall be available to the extent otherwise applicable.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Energy and Commerce.
Referred to the Subcommittee on Energy and Air Quality.
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