H. R. 6—348

(3) demonstrated responsiveness to workforce and training 

requirements in the electric power industry. 

(c) TRAINING AND CONTINUING EDUCATION.— (1) IN GENERAL.—The Center shall provide training and 

continuing education in electric power generation, transmission, 

and distribution technologies and operations. 

(2) LOCATION.—The Center shall carry out training and 

education activities under paragraph (1)— 

(A) at the Center; and 

(B) through Internet-based information technologies 

that allow for learning at remote sites. 

TITLE XII—ELECTRICITY 

SEC. 1201. SHORT TITLE. 

This title may be cited as the ‘‘Electricity Modernization Act 

of 2005’’. 

Subtitle A—Reliability Standards 

SEC. 1211. ELECTRIC RELIABILITY STANDARDS. 

(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. 

‘‘(a) DEFINITIONS.—For purposes of this section: 

‘‘(1) The term ‘bulk-power system’ means— 

‘‘(A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof); and 

‘‘(B) electric energy from generation facilities needed 

to maintain transmission system reliability. 

The term does not include facilities used in the local distribution 

of electric energy. 

‘‘(2) The terms ‘Electric Reliability Organization’ and ‘ERO’ 

mean the organization certified by the Commission under subsection (c) the purpose of which is to establish and enforce 

reliability standards for the bulk-power system, subject to 

Commission review. 

‘‘(3) The term ‘reliability standard’ means a requirement, 

approved by the Commission under this section, to provide 

for reliable operation of the bulk-power system. The term 

includes requirements for the operation of existing bulk-power 

system facilities, including cybersecurity protection, and the 

design of planned additions or modifications to such facilities 

to the extent necessary to provide for reliable operation of 

the bulk-power system, but the term does not include any 

requirement to enlarge such facilities or to construct new transmission capacity or generation capacity. 

‘‘(4) The term ‘reliable operation’ means operating the elements of the bulk-power system within equipment and electric 

system thermal, voltage, and stability limits so that instability, 

uncontrolled separation, or cascading failures of such system 

will not occur as a result of a sudden disturbance, including 

a cybersecurity incident, or unanticipated failure of system 

elements. 
H. R. 6—349

‘‘(5) 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 system to maintain reliable 

operation of the facilities within their control. 

‘‘(6) The term ‘transmission organization’ means a Regional 

Transmission Organization, Independent System Operator, 

independent transmission provider, or other transmission 

organization finally approved by the Commission for the operation of transmission facilities. 

‘‘(7) The term ‘regional entity’ means an entity having 

enforcement authority pursuant to subsection (e)(4). 

‘‘(8) The term ‘cybersecurity incident’ means a malicious 

act or suspicious event that disrupts, or was an attempt to 

disrupt, the operation of those programmable electronic devices 

and communication networks including hardware, software and 

data that are essential to the reliable operation of the bulk 

power system. 

‘‘(b) JURISDICTION AND APPLICABILITY.—(1) The Commission 

shall have jurisdiction, within the United States, over the ERO 

certified by the Commission under subsection (c), any regional 

entities, and all users, owners and operators of the bulk-power 

system, including but not limited to the entities described in section 

201(f), for purposes of approving reliability standards established 

under this section and enforcing compliance with this section. All 

users, owners and operators of the bulk-power system shall comply 

with reliability standards that take effect under this section. 

‘‘(2) The Commission shall issue a final rule to implement 

the requirements of this section not later than 180 days after 

the date of enactment of this section. 

‘‘(c) CERTIFICATION.—Following the issuance of a Commission 

rule under subsection (b)(2), any person may submit an application 

to the Commission for certification as the Electric Reliability 

Organization. The Commission may certify one such ERO if the 

Commission determines that such ERO— 

‘‘(1) has the ability to develop and enforce, subject to subsection (e)(2), reliability standards that provide for an adequate 

level of reliability of the bulk-power system; and 

‘‘(2) has established rules that— 

‘‘(A) assure its independence of the users and owners 

and operators of the bulk-power system, while assuring 

fair stakeholder representation in the selection of its directors and balanced decisionmaking in any ERO committee 

or subordinate organizational structure; 

‘‘(B) allocate equitably reasonable dues, fees, and other 

charges among end users for all activities under this section; 

‘‘(C) provide fair and impartial procedures for enforcement of reliability standards through the imposition of 

penalties in accordance with subsection (e) (including 

limitations on activities, functions, or operations, or other 

appropriate sanctions); 

‘‘(D) provide for reasonable notice and opportunity for 

public comment, due process, openness, and balance of 

interests in developing reliability standards and otherwise 

exercising its duties; and 
H. R. 6—350

‘‘(E) provide for taking, after certification, appropriate 

steps to gain recognition in Canada and Mexico. 

‘‘(d) RELIABILITY STANDARDS.—(1) The Electric Reliability 

Organization shall file each reliability standard or modification 

to a reliability standard that it proposes to be made effective under 

this section with the Commission. 

‘‘(2) The Commission may approve, by rule or order, a proposed 

reliability standard or modification to a reliability standard if it 

determines that the standard is just, reasonable, not unduly 

discriminatory or preferential, and in the public interest. The 

Commission shall give due weight to the technical expertise of 

the Electric Reliability Organization with respect to the content 

of a proposed standard or modification to a reliability standard 

and to the technical expertise of a regional entity organized on 

an Interconnection-wide basis with respect to a reliability standard 

to be applicable within that Interconnection, but shall not defer 

with respect to the effect of a standard on competition. A proposed 

standard or modification shall take effect upon approval by the 

Commission. 

‘‘(3) The Electric Reliability Organization shall rebuttably presume that a proposal from a regional entity organized on an Interconnection-wide basis for a reliability standard or modification to 

a reliability standard to be applicable on an Interconnection-wide 

basis is just, reasonable, and not unduly discriminatory or preferential, and in the public interest. 

‘‘(4) The Commission shall remand to the Electric Reliability 

Organization for further consideration a proposed reliability 

standard or a modification to a reliability standard that the 

Commission disapproves in whole or in part. 

‘‘(5) The Commission, upon its own motion or upon complaint, 

may order the Electric Reliability Organization to submit to the 

Commission a proposed reliability standard or a modification to 

a reliability standard that addresses a specific matter if the 

Commission considers such a new or modified reliability standard 

appropriate to carry out this section. 

‘‘(6) The final rule adopted under subsection (b)(2) shall include 

fair processes for the identification and timely resolution of any 

conflict between a reliability standard and any function, rule, order, 

tariff, rate schedule, or agreement accepted, approved, or ordered 

by the Commission applicable to a transmission organization. Such 

transmission organization shall continue to comply with such function, rule, order, tariff, rate schedule or agreement accepted, 

approved, or ordered by the Commission until— 

‘‘(A) the Commission finds a conflict exists between a reliability standard and any such provision; 

‘‘(B) the Commission orders a change to such provision 

pursuant to section 206 of this part; and 

‘‘(C) the ordered change becomes effective under this part. 

If the Commission determines that a reliability standard needs 

to be changed as a result of such a conflict, it shall order the 

ERO to develop and file with the Commission a modified reliability 

standard under paragraph (4) or (5) of this subsection. 

‘‘(e) ENFORCEMENT.—(1) The ERO may impose, subject to paragraph (2), a penalty on a user or owner or operator of the bulkpower system for a violation of a reliability standard approved 

by the Commission under subsection (d) if the ERO, after notice 

and an opportunity for a hearing— 
H. R. 6—351

‘‘(A) finds that the user or owner or operator has violated 

a reliability standard approved by the Commission under subsection (d); and 

‘‘(B) files notice and the record of the proceeding with 

the Commission. 

‘‘(2) A penalty imposed under paragraph (1) may take effect 

not earlier than the 31st day after the ERO 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 ERO 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 ERO for further proceedings. The Commission shall 

implement expedited procedures for such hearings. 

‘‘(3) On its own motion or upon complaint, the Commission 

may order compliance with a reliability standard and may impose 

a penalty against a user or owner or operator of the bulk-power 

system if the Commission finds, after notice and opportunity for 

a hearing, that the user or owner or operator of the bulk-power 

system has engaged or is about to engage in any acts or practices 

that constitute or will constitute a violation of a reliability standard. 

‘‘(4) The Commission shall issue regulations authorizing the 

ERO to enter into an agreement to delegate authority to a regional 

entity for the purpose of proposing reliability standards to the 

ERO and enforcing reliability standards under paragraph (1) if— 

‘‘(A) the regional entity is governed by— 

‘‘(i) an independent board; 

‘‘(ii) a balanced stakeholder board; or 

‘‘(iii) a combination independent and balanced stakeholder board. 

‘‘(B) the regional entity otherwise satisfies the provisions 

of subsection (c)(1) and (2); and 

‘‘(C) the agreement promotes effective and efficient administration of bulk-power system reliability. 

The Commission may modify such delegation. The ERO and the 

Commission shall rebuttably presume that a proposal for delegation 

to a regional entity organized on an Interconnection-wide basis 

promotes effective and efficient administration of bulk-power system 

reliability and should be approved. Such regulation may provide 

that the Commission may assign the ERO’s authority to enforce 

reliability standards under paragraph (1) directly to a regional 

entity consistent with the requirements of this paragraph. 

‘‘(5) The Commission may take such action as is necessary 

or appropriate against the ERO or a regional entity to ensure 

compliance with a reliability standard or any Commission order 

affecting the ERO or a regional entity. 
H. R. 6—352

‘‘(6) 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 such user, owner, or operator to 

remedy the violation in a timely manner. 

‘‘(f) CHANGES IN ELECTRIC RELIABILITY ORGANIZATION RULES.—

The Electric Reliability Organization shall 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 ERO. 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 (c). 

‘‘(g) RELIABILITY REPORTS.—The ERO shall conduct periodic 

assessments of the reliability and adequacy of the bulk-power 

system in North America. 

‘‘(h) COORDINATION WITH CANADA AND MEXICO.—The President 

is urged to negotiate international agreements with the governments of Canada and Mexico to provide for effective compliance 

with reliability standards and the effectiveness of the ERO in 

the United States and Canada or Mexico. 

‘‘(i) SAVINGS PROVISIONS.—(1) The ERO shall have authority 

to develop and enforce compliance with reliability standards for 

only the bulk-power system. 

‘‘(2) This section does not authorize the ERO or the Commission 

to order the construction of additional generation or transmission 

capacity or 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 reliability standard, 

except that the State of New York may establish rules that result 

in greater reliability within that State, as long as such action 

does not result in lesser reliability outside the State than that 

provided by the reliability standards. 

‘‘(4) Within 90 days of the application of the Electric 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 a reliability 

standard, taking into consideration any recommendation of the 

ERO. 

‘‘(5) The Commission, after consultation with the ERO and 

the State taking action, may stay the effectiveness of any State 

action, pending the Commission’s issuance of a final order. 

‘‘(j) 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 load 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. A regional advisory body may provide 

advice to the Electric Reliability Organization, a regional entity, 

or the Commission regarding the governance of an existing or 

proposed regional entity within the same region, whether a standard 
H. R. 6—353

proposed to apply within the region is just, reasonable, not unduly 

discriminatory or preferential, and in the public interest, whether 

fees proposed to be assessed within the region are just, reasonable, 

not unduly discriminatory or preferential, and in the public interest 

and any other responsibilities requested by the Commission. The 

Commission may give deference to the advice of any such regional 

advisory body if that body is organized on an Interconnectionwide basis. 

‘‘(k) ALASKA AND HAWAII.—The provisions of this section do 

not apply to Alaska or Hawaii.’’. 

(b) STATUS OF ERO.—The Electric Reliability Organization certified by the Federal Energy Regulatory Commission under section 

215(c) of the Federal Power Act and any regional entity delegated 

enforcement authority pursuant to section 215(e)(4) of that Act 

are not departments, agencies, or instrumentalities of the United 

States Government. 

(c) ACCESS APPROVALS BY FEDERAL AGENCIES.—Federal agencies responsible for approving access to electric transmission or 

distribution facilities located on lands within the United States 

shall, in accordance with applicable law, expedite any Federal 

agency approvals that are necessary to allow the owners or operators of such facilities to comply with any reliability standard, 

approved by the Commission under section 215 of the Federal 

Power Act, that pertains to vegetation management, electric service 

restoration, or resolution of situations that imminently endanger 

the reliability or safety of the facilities. 

Subtitle B—Transmission Infrastructure 

Modernization 

SEC. 1221. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES. 

(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. 216. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES. 

‘‘(a) DESIGNATION OF NATIONAL INTEREST ELECTRIC TRANSMISSION CORRIDORS.—(1) Not later than 1 year after the date of 

enactment of this section and every 3 years thereafter, the Secretary 

of Energy (referred to in this section as the ‘Secretary’), in consultation with affected States, shall conduct a study of electric transmission congestion. 

‘‘(2) After considering alternatives and recommendations from 

interested parties (including an opportunity for comment from 

affected States), the Secretary shall issue a report, based on the 

study, which may designate any geographic area experiencing electric energy transmission capacity constraints or congestion that 

adversely affects consumers as a national interest electric transmission corridor. 

‘‘(3) The Secretary shall conduct the study and issue the report 

in consultation with any appropriate regional entity referred to 

in section 215. 

‘‘(4) In determining whether to designate a national interest 

electric transmission corridor under paragraph (2), the Secretary 

may consider whether—