Energy Product Reliability Act
This bill directs the Federal Energy Regulatory Commission to certify an Energy Product Reliability Organization. Once certified, the organization must establish and enforce reliability standards for energy pipelines (e.g., natural gas, hydrogen, and petroleum pipelines) relating to cybersecurity, physical security, and the coordination of delivery and availability of energy products to ensure reliable electricity generation.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6084 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 6084
To require the Federal Energy Regulatory Commission to certify an
Energy Product Reliability Organization which shall, subject to
Commission review, establish and enforce energy product reliability
standards, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 30, 2021
Mr. Rush introduced the following bill; which was referred to the
Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To require the Federal Energy Regulatory Commission to certify an
Energy Product Reliability Organization which shall, subject to
Commission review, establish and enforce energy product reliability
standards, 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 ``Energy Product Reliability Act''.
SEC. 2. ENERGY PRODUCT RELIABILITY STANDARDS.
(a) Definitions.--In this section:
(1) Commission.--The term ``Commission'' means the Federal
Energy Regulatory Commission.
(2) Cybersecurity incident.--The term ``cybersecurity
incident'' means a malicious act or suspicious event that
disrupts, or was an attempt to disrupt, the operation of
programmable electronic devices and communication networks,
including hardware, software, and data, that are essential to
the reliable delivery of an energy product through an energy
pipeline.
(3) Energy pipeline.--The term ``energy pipeline'' means a
pipeline for the delivery of an energy product, including any
facility or control system necessary for the operation of such
a pipeline.
(4) Energy product.--The term ``energy product'' includes
natural gas, hydrogen, petroleum, and a petroleum product.
(5) Energy product reliability standard.--The term ``energy
product reliability standard'' means a requirement approved,
established, or modified by the Commission under this section
to provide for the reliable delivery of an energy product
through an energy pipeline.
(6) Energy product reliability organization; epro.--The
terms ``Energy Product Reliability Organization'' and ``EPRO''
mean the organization certified by the Commission under
subsection (d) to establish and enforce energy product
reliability standards, subject to Commission review.
(b) Jurisdiction and Applicability.--
(1) Jurisdiction.--The Commission shall have jurisdiction,
within the United States, over the Energy Product Reliability
Organization certified by the Commission under subsection (d)
and all users, owners, and operators of energy pipelines, for
purposes of approving energy product reliability standards
established under this section and enforcing compliance with
this section.
(2) Applicability.--All users, owners, and operators of
energy pipelines shall comply with energy product reliability
standards that take effect under this section.
(c) Rule.--Not later than 270 days after the date of enactment of
this section, the Commission, in consultation with the Administrator of
the Transportation Security Administration, the Secretary of Energy,
the Secretary of Transportation, the Electric Reliability Organization
(as defined in section 215 of the Federal Power Act (16 U.S.C. 824o)),
and any other Federal agency or organization the Commission determines
appropriate, shall issue a final rule to implement this section.
(d) Certification.--
(1) Application.--Following the issuance of a final rule
under subsection (c), any person may submit an application to
the Commission for certification as the Energy Product
Reliability Organization.
(2) Certification.--Not later than 2 years after the date
of enactment of this Act, the Commission shall certify one
Energy Product Reliability Organization if the Commission
determines that such Energy Product Reliability Organization--
(A) has the ability to develop and enforce energy
product reliability standards; and
(B) has established rules that--
(i) ensure its independence from the users,
owners, and operators of energy pipelines,
while ensuring fair stakeholder representation
in the selection of its directors and balanced
decisionmaking in any Energy Product
Reliability Organization committee or
subordinate organizational structure;
(ii) equitably allocate reasonable dues,
fees, and other charges among end users for all
activities under this section;
(iii) provide fair and impartial procedures
for enforcement of energy product reliability
standards through the imposition of penalties
in accordance with subsection (g) (including
limitations on activities, functions, or
operations, or other appropriate sanctions);
(iv) provide for reasonable notice and
opportunity for public comment, due process,
openness, and balance of interests in
developing energy product reliability standards
and otherwise exercising its duties; and
(v) provide for taking, after
certification, appropriate steps to gain
recognition in Canada and Mexico.
(e) Energy Product Reliability Standards.--
(1) Filing.--The Energy Product Reliability Organization
shall file each energy product reliability standard, or
modification to an energy product reliability standard, that is
proposed to be made effective under this section with the
Commission.
(2) Approval.--The Commission may approve, by rule or
order, a proposed energy product reliability standard, or
modification to an energy product reliability standard, if it
determines that the energy product reliability standard is
just, reasonable, not unduly discriminatory or preferential,
and in the public interest.
(3) Included standards.--In carrying out this section, the
Energy Product Reliability Organization shall, at a minimum,
establish energy product reliability standards relating to--
(A) cybersecurity, including protocols for the
reporting of cybersecurity incidents;
(B) physical security; and
(C) coordination of delivery and availability of
energy products to ensure reliable electricity
generation, including electricity generation that is
needed to maintain electric transmission system
reliability.
(4) Consultation.--The Energy Product Reliability
Organization shall consult with the Administrator of the
Transportation Security Administration and the Secretary of
Energy in developing energy product reliability standards
relating to cybersecurity for energy pipelines.
(5) Technical expertise.--The Commission shall give due
weight to the technical expertise of the Energy Product
Reliability Organization with respect to the content of a
proposed energy product reliability standard or modification to
an energy product reliability standard, but shall not defer
with respect to the effect of an energy product reliability
standard on competition.
(6) Effect.--A proposed energy product reliability standard
or modification to an energy product reliability standard shall
take effect upon approval by the Commission.
(7) Remand.--The Commission shall remand to the Energy
Product Reliability Organization for further consideration a
proposed energy product reliability standard or a modification
to an energy product reliability standard that the Commission
disapproves in whole or in part.
(8) Commission order.--The Commission, upon its own motion
or upon complaint, may order the Energy Product Reliability
Organization to submit to the Commission a proposed energy
product reliability standard or a modification to an energy
product reliability standard that addresses a specific matter
if the Commission considers such a new or modified energy
product reliability standard appropriate to carry out this
section.
(f) Emergency Energy Product Reliability Standards.--
(1) In general.--The Commission may establish or modify an
energy product reliability standard to address continuing or
foreseeable emergency conditions if the Commission determines
that--
(A) the energy product reliability standards
approved under subsection (e) do not adequately provide
for the reliable delivery of energy products through
energy pipelines under such emergency conditions; and
(B) the use of the process for developing energy
product reliability standards pursuant to subsection
(e) would not result in the establishment or
modification of an energy product reliability standard
that provides for the reliable delivery of energy
products through energy pipelines under such conditions
in a timely manner.
(2) Consultation.--Not later than 6 months after the
effective date of an energy product reliability standard
established or modified under this subsection, the Commission
shall consult with the Energy Product Reliability Organization,
the Administrator of the Transportation Security
Administration, and any other Federal agency the Commission
determines appropriate to determine whether such energy product
reliability standard should remain in effect or be modified.
(g) Enforcement.--
(1) In general.--The Energy Product Reliability
Organization may impose a penalty on a user, owner, or operator
of an energy pipeline for a violation of an energy product
reliability standard approved by the Commission under
subsection (e) if the Energy Product Reliability Organization,
after notice and an opportunity for a hearing--
(A) finds that the user, owner, or operator has
violated an energy product reliability standard
approved by the Commission under subsection (e); and
(B) files notice and the record of the proceeding
with the Commission.
(2) Procedures.--A penalty imposed under paragraph (1) may
take effect not earlier than the 31st day after the Energy
Product Reliability Organization files with the Commission
notice of the penalty and the record of proceedings. Such
penalty shall be subject to review by the Commission, on its
own motion or upon application by the user, owner, or operator
that is the subject of the penalty filed within 30 days after
the date such notice is filed with the Commission. Application
to the Commission for review, or the initiation of review by
the Commission on its own motion, shall not operate as a stay
of such penalty unless the Commission otherwise orders upon its
own motion or upon application by the user, owner, or operator
that is the subject of such penalty. In any proceeding to
review a penalty imposed under paragraph (1), the Commission,
after notice and opportunity for hearing (which hearing may
consist solely of the record before the Energy Product
Reliability Organization and opportunity for the presentation
of supporting reasons to affirm, modify, or set aside the
penalty), shall by order affirm, set aside, reinstate, or
modify the penalty, and, if appropriate, remand to the Energy
Product Reliability Organization for further proceedings. The
Commission shall implement expedited procedures for such
hearings.
(3) Commission enforcement.--On its own motion or upon
complaint, the Commission may order compliance with an energy
product reliability standard and may impose a penalty against a
user, owner, or operator of an energy pipeline if the
Commission finds, after notice and opportunity for a hearing,
that the user, owner, or operator of the energy pipeline has
engaged or is about to engage in any acts or practices that
constitute or will constitute a violation of an energy product
reliability standard.
(4) Protection of information.--Any notice of enforcement
or record pertaining to a violation of an energy product
reliability standard relating to cybersecurity submitted to the
Commission shall be deemed to be critical electric
infrastructure information (as defined in section 215A of the
Federal Power Act (16 U.S.C. 824o-1)).
(5) EPRO compliance.--The Commission may take such action
as is necessary or appropriate against the Energy Product
Reliability Organization to ensure compliance with an energy
product reliability standard or any Commission order affecting
the Energy Product Reliability Organization.
(6) Considerations.--Any penalty imposed under this section
shall bear a reasonable relation to the seriousness of the
violation and shall take into consideration the efforts of the
user, owner, or operator to remedy the violation in a timely
manner.
(h) Changes in EPRO Rules.--The Energy Product Reliability
Organization shall, with respect to the rules of the Energy Product
Reliability Organization, file with the Commission for approval any
proposed rule or proposed rule change, accompanied by an explanation of
its basis and purpose. The Commission, upon its own motion or
complaint, may propose a change to the rules of the Energy Product
Reliability Organization. A proposed rule or proposed rule change shall
take effect upon a finding by the Commission, after notice and
opportunity for comment, that the change is just, reasonable, not
unduly discriminatory or preferential, is in the public interest, and
satisfies the requirements of subsection (d).
(i) Reliability Reports.--The Energy Product Reliability
Organization shall conduct and submit to the Committee on Energy and
Commerce of the House of Representatives and the Committee on Energy
and Natural Resources of the Senate periodic assessments of the
reliable delivery of energy products through energy pipelines in North
America.
(j) Savings Provisions.--
(1) Construction.--This section does not authorize the
Energy Product Reliability Organization or the Commission to
order the construction of additional energy pipelines or to set
and enforce compliance with standards for adequacy or safety of
energy pipelines or services.
(2) State authority.--
(A) In general.--Nothing in this section shall be
construed to preempt any authority of any State to take
action to ensure the reliable delivery of energy
products through energy pipelines within that State, as
long as such action is not inconsistent with any energy
product reliability standard.
(B) State action.--Not later than 90 days after the
application of the Energy Product Reliability
Organization or other affected party, and after notice
and opportunity for comment, the Commission shall issue
a final order determining whether a State action is
inconsistent with an energy product reliability
standard, taking into consideration any recommendation
of the Energy Product Reliability Organization.
(C) Stay of effectiveness.--The Commission, after
consultation with the Energy Product Reliability
Organization and the State taking action, may stay the
effectiveness of any State action, pending the
Commission's issuance of a final order.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Energy and Commerce.
Referred to the Subcommittee on Energy.
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