I 

111TH CONGRESS 

2D SESSION H. R. 5026 

To amend the Federal Power Act to protect the bulk-power system and 

electric infrastructure critical to the defense of the United States from 

cybersecurity and other threats and vulnerabilities. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 14, 2010 

Mr. MARKEY of Massachusetts (for himself and Mr. UPTON) introduced the 

following bill; which was referred to the Committee on Energy and Commerce 

A BILL 

To amend the Federal Power Act to protect the bulk-power 

system and electric infrastructure critical to the defense 

of the United States from cybersecurity and other threats 

and vulnerabilities. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Grid Reliability and 

5 Infrastructure Defense Act’’ or the ‘‘GRID Act’’. 

6 SEC. 2. AMENDMENT TO THE FEDERAL POWER ACT. 

7 (a) CRITICAL ELECTRIC INFRASTRUCTURE SECU8 RITY.—Part II of the Federal Power Act (16 U.S.C. 824 


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1 et seq.) is amended by adding after section 215 the fol2 lowing new section: 

3 ‘‘SEC. 215A. CRITICAL ELECTRIC INFRASTRUCTURE SECU4 RITY. 

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

6 ‘‘(1) BULK-POWER SYSTEM; ELECTRIC RELI7 ABILITY ORGANIZATION; REGIONAL ENTITY.—The 

8 terms ‘bulk-power system’, ‘Electric Reliability Or9 ganization’, and ‘regional entity’ have the meanings 

10 given such terms in paragraphs (1), (2), and (7) of 

11 section 215(a), respectively. 

12 ‘‘(2) DEFENSE CRITICAL ELECTRIC INFRA13 STRUCTURE.—The term ‘defense critical electric in14 frastructure’ means any infrastructure located in the 

15 United States (including the territories) used for the 

16 generation, transmission, or distribution of electric 

17 energy that— 

18 ‘‘(A) is not part of the bulk-power system; 

19 and 

20 ‘‘(B) serves a facility designated by the 

21 President pursuant to subsection (d)(1), but is 

22 not owned or operated by the owner or operator 

23 of such facility. 

24 ‘‘(3) DEFENSE CRITICAL ELECTRIC INFRA25 STRUCTURE VULNERABILITY.—The term ‘defense 


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1 critical electric infrastructure vulnerability’ means a 

2 weakness in defense critical electric infrastructure 

3 that, in the event of a malicious act using electronic 

4 communication or an electromagnetic weapon, would 

5 pose a substantial risk of disruption of those pro6 grammable electronic devices and communications 

7 networks, including hardware, software, and data, 

8 that are essential to the reliability of defense critical 

9 electric infrastructure. 

10 ‘‘(4) ELECTROMAGNETIC WEAPON.—The term 

11 ‘electromagnetic weapon’ means a weapon (other 

12 than a nuclear device) capable of disabling, dis13 rupting, or destroying electronic equipment by trans14 mitting 1 or more pulses of electromagnetic energy, 

15 such as high-power radio frequency or microwave en16 ergy. 

17 ‘‘(5) GEOMAGNETIC STORM.—The term ‘geo18 magnetic storm’ means a temporary disturbance of 

19 the Earth’s magnetic field resulting from solar activ20 ity. 

21 ‘‘(6) GRID SECURITY THREAT.—The term ‘grid 

22 security threat’ means a substantial likelihood of— 

23 ‘‘(A)(i) a malicious act using electronic 

24 communication or an electromagnetic weapon, 

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1 rupt the operation of those programmable elec2 tronic devices and communications networks, 

3 including hardware, software, and data, that 

4 are essential to the reliability of the bulk-power 

5 system or of defense critical electric infrastruc6 ture; and 

7 ‘‘(ii) disruption of the operation of such 

8 devices and networks, with significant adverse 

9 effects on the reliability of the bulk-power sys10 tem or of defense critical electric infrastructure, 

11 as a result of such act or event; or 

12 ‘‘(B)(i) a direct physical attack on the 

13 bulk-power system or on defense critical electric 

14 infrastructure; and 

15 ‘‘(ii) significant adverse effects on the reli16 ability of the bulk-power system or of defense 

17 critical electric infrastructure as a result of 

18 such physical attack. 

19 ‘‘(7) GRID SECURITY VULNERABILITY.—The 

20 term ‘grid security vulnerability’ means a weakness 

21 that, in the event of a malicious act using electronic 

22 communication or an electromagnetic weapon, would 

23 pose a substantial risk of disruption to the operation 

24 of those programmable electronic devices and com25 munications networks, including hardware, software, 


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1 and data, that are essential to the reliability of the 

2 bulk-power system. 

3 ‘‘(8) LARGE TRANSFORMER.—The term ‘large 

4 transformer’ means an electric transformer that is 

5 part of the bulk-power system. 

6 ‘‘(9) PROTECTED INFORMATION.—The term 

7 ‘protected information’ means information, other 

8 than classified national security information, des9 ignated as protected information by the Commission 

10 under subsection (e)(2)— 

11 ‘‘(A) that was developed or submitted in 

12 connection with the implementation of this sec13 tion; 

14 ‘‘(B) that specifically discusses grid secu15 rity threats, grid security vulnerabilities, de16 fense critical electric infrastructure 

17 vulnerabilities, or plans, procedures, or meas18 ures to address such threats or vulnerabilities; 

19 and 

20 ‘‘(C) the unauthorized disclosure of which 

21 could be used in a malicious manner to impair 

22 the reliability of the bulk-power system or of 

23 defense critical electric infrastructure. 

24 ‘‘(10) SECRETARY.—The term ‘Secretary’ 

25 means the Secretary of Energy. 


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1 ‘‘(11) SECURITY.—For the purposes of this sec2 tion, the definition of ‘security’ in section 3(16) shall 

3 not apply. 

4 ‘‘(b) EMERGENCY RESPONSE MEASURES.— 

5 ‘‘(1) AUTHORITY TO ADDRESS GRID SECURITY

6 THREATS.—Whenever the President issues and pro7 vides to the Commission (either directly or through 

8 the Secretary) a written directive or determination 

9 identifying an imminent grid security threat, the 

10 Commission may, with or without notice, hearing, or 

11 report, issue such orders for emergency measures as 

12 are necessary in its judgment to protect the reli13 ability of the bulk-power system or of defense critical 

14 electric infrastructure against such threat. As soon 

15 as practicable but not later than 180 days after the 

16 date of enactment of this section, the Commission 

17 shall, after notice and opportunity for comment, es18 tablish rules of procedure that ensure that such au19 thority can be exercised expeditiously. 

20 ‘‘(2) CONSULTATION.—Before issuing an order 

21 for emergency measures under paragraph (1), the 

22 Commission shall, to the extent practicable in light 

23 of the nature of the grid security threat and the ur24 gency of the need for such emergency measures, con25 sult with appropriate governmental authorities in 


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1 Canada and Mexico, entities described in paragraph 

2 (3), the Secretary, and other appropriate Federal 

3 agencies regarding implementation of such emer4 gency measures. 

5 ‘‘(3) APPLICATION.—An order for emergency 

6 measures under this subsection may apply to— 

7 ‘‘(A) the Electric Reliability Organization; 

8 ‘‘(B) a regional entity; or 

9 ‘‘(C) any owner, user, or operator of the 

10 bulk-power system or of defense critical electric 

11 infrastructure within the United States. 

12 ‘‘(4) DISCONTINUANCE.—The Commission shall 

13 issue an order discontinuing any emergency meas14 ures ordered under this subsection, effective not 

15 later than 30 days after the earliest of the following: 

16 ‘‘(A) The date upon which the President 

17 issues and provides to the Commission (either 

18 directly or through the Secretary) a written di19 rective or determination that the grid security 

20 threat identified under paragraph (1) no longer 

21 exists. 

22 ‘‘(B) The date upon which the Commission 

23 issues a written determination that the emer24 gency measures are no longer needed to address 

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1 graph (1), including by means of Commission 

2 approval of a reliability standard under section 

3 215 that the Commission determines adequately 

4 addresses such threat. 

5 ‘‘(C) The date that is 1 year after the 

6 issuance of an order under paragraph (1), un7 less the President issues and provides to the 

8 Commission (either directly or through the Sec9 retary) a written directive or determination re10 affirming the continuing nature of the grid se11 curity threat identified under paragraph (1), 

12 provided that— 

13 ‘‘(i) such directive or determination 

14 shall be effective for purposes of this para15 graph for no longer than 1 additional year 

16 unless extended through a subsequent di17 rective or determination reaffirming the 

18 continuing nature of the grid security 

19 threat identified under paragraph (1); and 

20 ‘‘(ii) each such subsequent directive or 

21 determination shall be effective for pur22 poses of this paragraph for no longer than 

23 1 additional year. 

24 ‘‘(5) COST RECOVERY.—If the Commission de25 termines that owners, operators, or users of the 


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1 bulk-power system or of defense critical electric in2 frastructure have incurred substantial costs to com3 ply with an order under this subsection and that 

4 such costs were prudently incurred and cannot rea5 sonably be recovered through regulated rates or 

6 market prices for the electric energy or services sold 

7 by such owners, operators, or users, the Commission 

8 shall, after notice and an opportunity for comment, 

9 establish a mechanism that permits such owners, op10 erators, or users to recover such costs. 

11 ‘‘(c) MEASURES TO ADDRESS GRID SECURITY

12 VULNERABILITIES.— 

13 ‘‘(1) COMMISSION AUTHORITY.—If the Commis14 sion, in consultation with appropriate Federal agen15 cies, identifies a grid security vulnerability that the 

16 Commission determines has not adequately been ad17 dressed through a reliability standard developed and 

18 approved under section 215, the Commission shall, 

19 after notice and opportunity for comment and after 

20 consultation with the Secretary, other appropriate 

21 Federal agencies, and appropriate governmental au22 thorities in Canada and Mexico, promulgate a rule 

23 or issue an order requiring implementation, by any 

24 owner, operator, or user of the bulk-power system in 


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1 the United States, of measures to protect the bulk2 power system against such vulnerability. 

3 ‘‘(2) CERTAIN EXISTING CYBERSECURITY

4 VULNERABILITIES.—Not later than 180 days after 

5 the date of enactment of this section, the Commis6 sion shall, after notice and opportunity for comment 

7 and after consultation with appropriate Federal 

8 agencies, including the Secretary, and appropriate 

9 governmental authorities in Canada and Mexico, 

10 promulgate a rule or issue an order requiring the 

11 implementation, by any owner, user, or operator of 

12 the bulk-power system in the United States, of such 

13 measures as are necessary to protect the bulk-power 

14 system against the vulnerabilities identified in the 

15 June 21, 2007, communication to certain ‘Electricity 

16 Sector Owners and Operators’ from the North 

17 American Electric Reliability Corporation, acting in 

18 its capacity as the Electricity Sector Information 

19 and Analysis Center. 

20 ‘‘(3) RESCISSION.—The Commission shall ap21 prove a reliability standard developed under section 

22 215 that addresses a grid security vulnerability that 

23 is the subject of a rule or order under paragraph (1) 

24 or (2), unless the Commission determines that such 

25 reliability standard does not adequately protect 


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1 against such vulnerability or otherwise does not sat2 isfy the requirements of section 215. Upon such ap3 proval, the Commission shall rescind the rule pro4 mulgated or order issued under paragraph (1) or (2) 

5 addressing such vulnerability, effective upon the ef6 fective date of the newly approved reliability stand7 ard. 

8 ‘‘(4) GEOMAGNETIC STORMS.—Not later than 1 

9 year after the date of enactment of this section, the 

10 Commission shall, after notice and an opportunity 

11 for comment and after consultation with the Sec12 retary and other appropriate Federal agencies, issue 

13 an order directing the Electric Reliability Organiza14 tion to submit to the Commission for approval under 

15 section 215, not later than 1 year after the issuance 

16 of such order, reliability standards adequate to pro17 tect the bulk-power system from any reasonably 

18 foreseeable geomagnetic storm event. The Commis19 sion’s order shall specify the nature and magnitude 

20 of the reasonably foreseeable events against which 

21 such standards must protect. Such standards shall 

22 appropriately balance the risks to the bulk-power 

23 system associated with such events, including any 

24 regional variation in such risks, and the costs of 

25 mitigating such risks. 


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1 ‘‘(5) LARGE TRANSFORMER AVAILABILITY.— 

2 Not later than 1 year after the date of enactment 

3 of this section, the Commission shall, after notice 

4 and an opportunity for comment and after consulta5 tion with the Secretary and other appropriate Fed6 eral agencies, issue an order directing the Electric 

7 Reliability Organization to submit to the Commis8 sion for approval under section 215, not later than 

9 1 year after the issuance of such order, reliability 

10 standards addressing availability of large trans11 formers. Such standards shall require entities that 

12 own or operate large transformers to ensure, individ13 ually or jointly, adequate availability of large trans14 formers to promptly restore the reliable operation of 

15 the bulk-power system in the event that any such 

16 transformer is destroyed or disabled as a result of 

17 a reasonably foreseeable physical or other attack or 

18 geomagnetic storm event. The Commission’s order 

19 shall specify the nature and magnitude of the rea20 sonably foreseeable attacks or events that shall pro21 vide the basis for such standards. Such standards 

22 shall— 

23 ‘‘(A) provide entities subject to the stand24 ards with the option of meeting such standards 

25 individually or jointly; and 


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1 ‘‘(B) appropriately balance the risks asso2 ciated with a reasonably foreseeable attack or 

3 event, including any regional variation in such 

4 risks, and the costs of ensuring adequate avail5 ability of spare transformers. 

6 ‘‘(d) CRITICAL DEFENSE FACILITIES.— 

7 ‘‘(1) DESIGNATION.—Not later than 180 days 

8 after the date of enactment of this section, the 

9 President shall designate, in a written directive or 

10 determination provided to the Commission, the fa11 cilities located in the United States (including the 

12 territories) that are— 

13 ‘‘(A) most critical to the defense of the 

14 United States; and 

15 ‘‘(B) most vulnerable to a disruption of the 

16 supply of electric energy provided to such facil17 ity by an external provider. 

18 The number of facilities designated by such directive 

19 or determination shall not exceed 100. The Presi20 dent may periodically revise the list of designated fa21 cilities through a subsequent written directive or de22 termination provided to the Commission, provided 

23 that the total number of designated facilities at any 

24 time shall not exceed 100. 


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1 ‘‘(2) COMMISSION AUTHORITY.—If the Commis2 sion identifies a defense critical electric infrastruc3 ture vulnerability that the Commission, in consulta4 tion with owners and operators of any facility or fa5 cilities designated by the President pursuant to 

6 paragraph (1), determines has not adequately been 

7 addressed through measures undertaken by owners 

8 or operators of defense critical electric infrastruc9 ture, the Commission shall, after notice and an op10 portunity for comment and after consultation with 

11 the Secretary and other appropriate Federal agen12 cies, promulgate a rule or issue an order requiring 

13 implementation, by any owner or operator of defense 

14 critical electric infrastructure, of measures to protect 

15 the defense critical electric infrastructure against 

16 such vulnerability. The Commission shall exempt 

17 from any such rule or order any specific defense 

18 critical electric infrastructure that the Commission 

19 determines already has been adequately protected 

20 against the identified vulnerability. The Commission 

21 shall make any such determination in consultation 

22 with the owner or operator of the facility designated 

23 by the President pursuant to paragraph (1) that re24 lies upon such defense critical electric infrastructure. 


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1 ‘‘(3) COST RECOVERY.—An owner or operator 

2 of defense critical electric infrastructure shall be re3 quired to take measures under paragraph (2) only to 

4 the extent that the owners or operators of a facility 

5 or facilities designated by the President pursuant to 

6 paragraph (1) that rely upon such infrastructure 

7 agree to bear the full incremental costs of compli8 ance with a rule promulgated or order issued under 

9 paragraph (2). 

10 ‘‘(e) PROTECTION OF INFORMATION.— 

11 ‘‘(1) PROHIBITION OF PUBLIC DISCLOSURE OF

12 PROTECTED INFORMATION.—Protected informa13 tion— 

14 ‘‘(A) shall be exempt from disclosure under 

15 section 552 of title 5, United States Code; and 

16 ‘‘(B) shall not be made available pursuant 

17 to any State, local, or tribal law requiring dis18 closure of information or records. 

19 ‘‘(2) INFORMATION SHARING.— 

20 ‘‘(A) IN GENERAL.—Consistent with the 

21 Controlled Unclassified Information framework 

22 established by the President, the Commission 

23 shall promulgate such regulations and issue 

24 such orders as necessary to designate protected 


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1 information and to prohibit the unauthorized 

2 disclosure of such protected information. 

3 ‘‘(B) SHARING OF PROTECTED INFORMA4 TION.—The regulations promulgated and orders 

5 issued pursuant to subparagraph (A) shall pro6 vide standards for and facilitate the appropriate 

7 sharing of protected information with, between, 

8 and by Federal, State, local, and tribal authori9 ties, the Electric Reliability Organization, re10 gional entities, and owners, operators, and 

11 users of the bulk-power system in the United 

12 States and of defense critical electric infrastruc13 ture. In promulgating such regulations and 

14 issuing such orders, the Commission shall take 

15 account of the role of State commissions in re16 viewing the prudence and cost of investments 

17 within their respective jurisdictions. The Com18 mission shall consult with appropriate Canadian 

19 and Mexican authorities to develop protocols for 

20 the sharing of protected information with, be21 tween, and by appropriate Canadian and Mexi22 can authorities and owners, operators, and 

23 users of the bulk-power system outside the 

24 United States. 


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1 ‘‘(3) SUBMISSION OF INFORMATION TO CON2 GRESS.—Nothing in this section shall permit or au3 thorize the withholding of information from Con4 gress, any committee or subcommittee thereof, or 

5 the Comptroller General. 

6 ‘‘(4) DISCLOSURE OF NON-PROTECTED INFOR7 MATION.—In implementing this section, the Com8 mission shall protect from disclosure only the min9 imum amount of information necessary to protect 

10 the reliability of the bulk-power system and of de11 fense critical electric infrastructure. The Commission 

12 shall segregate protected information within docu13 ments and electronic communications, wherever fea14 sible, to facilitate disclosure of information that is 

15 not designated as protected information. 

16 ‘‘(5) DURATION OF DESIGNATION.—Informa17 tion may not be designated as protected information 

18 for longer than 5 years, unless specifically redesig19 nated by the Commission. 

20 ‘‘(6) REMOVAL OF DESIGNATION.—The Com21 mission may remove the designation of protected in22 formation, in whole or in part, from a document or 

23 electronic communication if the unauthorized disclo24 sure of such information could no longer be used to 


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1 impair the reliability of the bulk-power system or of 

2 defense critical electric infrastructure. 

3 ‘‘(7) JUDICIAL REVIEW OF DESIGNATIONS.— 

4 Notwithstanding subsection (f) of this section or sec5 tion 313, a person or entity may seek judicial review 

6 of a determination by the Commission concerning 

7 the designation of protected information under this 

8 subsection exclusively in the district court of the 

9 United States in the district in which the complain10 ant resides, or has his principal place of business, or 

11 in the District of Columbia. In such a case the court 

12 shall determine the matter de novo, and may exam13 ine the contents of documents or electronic commu14 nications designated as protected information in 

15 camera to determine whether such documents or any 

16 part thereof were improperly designated as protected 

17 information. The burden is on the Commission to 

18 sustain its designation. 

19 ‘‘(f) JUDICIAL REVIEW.—The Commission shall act 

20 expeditiously to resolve all applications for rehearing of 

21 orders issued pursuant to this section that are filed under 

22 section 313(a). Any party seeking judicial review pursuant 

23 to section 313 of an order issued under this section may 

24 obtain such review only in the United States Court of Ap25 peals for the District of Columbia Circuit. 


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1 ‘‘(g) PROVISION OF ASSISTANCE TO INDUSTRY IN

2 MEETING GRID SECURITY PROTECTION NEEDS.— 

3 ‘‘(1) EXPERTISE AND RESOURCES.—The Sec4 retary shall establish a program, in consultation with 

5 other appropriate Federal agencies, to develop tech6 nical expertise in the protection of systems for the 

7 generation, transmission, and distribution of electric 

8 energy against geomagnetic storms or malicious acts 

9 using electronic communications or electromagnetic 

10 weapons that would pose a substantial risk of dis11 ruption to the operation of those programmable elec12 tronic devices and communications networks, includ13 ing hardware, software, and data, that are essential 

14 to the reliability of such systems. Such program 

15 shall include the identification and development of 

16 appropriate technical and electronic resources, in17 cluding hardware, software, and system equipment. 

18 ‘‘(2) SHARING EXPERTISE.—As appropriate, 

19 the Secretary shall offer to share technical expertise 

20 developed under the program under paragraph (1), 

21 through consultation and assistance, with owners, 

22 operators, or users of systems for the generation, 

23 transmission, or distribution of electric energy lo24 cated in the United States and with State commis25 sions. In offering such support, the Secretary shall 


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1 assign higher priority to systems serving facilities 

2 designated by the President pursuant to subsection 

3 (d)(1) and other critical-infrastructure facilities, 

4 which the Secretary shall identify in consultation 

5 with the Commission and other appropriate Federal 

6 agencies. 

7 ‘‘(3) SECURITY CLEARANCES AND COMMUNICA8 TION.—The Secretary shall facilitate and, to the ex9 tent practicable, expedite the acquisition of adequate 

10 security clearances by key personnel of any entity 

11 subject to the requirements of this section to enable 

12 optimum communication with Federal agencies re13 garding grid security threats, grid security 

14 vulnerabilities, and defense critical electric infra15 structure vulnerabilities. The Secretary, the Com16 mission, and other appropriate Federal agencies 

17 shall, to the extent practicable and consistent with 

18 their obligations to protect classified and protected 

19 information, share timely actionable information re20 garding grid security threats, grid security 

21 vulnerabilities, and defense critical electric infra22 structure vulnerabilities with appropriate key per23 sonnel of owners, operators, and users of the bulk24 power system and of defense critical electric infra25 structure.’’. 


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1 (b) CONFORMING AMENDMENTS.— 

2 (1) JURISDICTION.—Section 201(b)(2) of the 

3 Federal Power Act (16 U.S.C. 824(b)(2)) is amend4 ed by inserting ‘‘215A,’’ after ‘‘215,’’ each place it 

5 appears. 

6 (2) PUBLIC UTILITY.—Section 201(e) of the 

7 Federal Power Act (16 U.S.C. 824(e)) is amended 

8 by inserting ‘‘215A,’’ after ‘‘215,’’. 

Æ 


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