spect to the effect of the organization
standard on competition.
‘‘(E) REMAND.—A proposed organization
standard that is disapproved in whole or in part
by the Commission shall be remanded to the
electric reliability organization for further con-
sideration.
‘‘(3) ORDERS TO DEVELOP OR MODIFY ORGANI-
ZATION
STANDARDS.—The Commission, on com-
plaint or on motion of the Commission, may order
the electric reliability organization to develop and
submit to the Commission, by a date specified in the
order, an organization standard or modification to
an existing organization standard to address a spe-
cific matter if the Commission considers a new or
modified organization standard appropriate to carry
out this section, and the electric reliability organiza-
tion shall develop and submit the organization
standard or modification to the Commission in ac-
cordance with this subsection.
‘‘(4) VARIANCES AND ENTITY RULES.—
‘‘(A) PROPOSAL.—An affiliated regional
reliability entity may propose a variance or enti-
ty rule to the electric reliability organization.
‘‘(B) EXPEDITED CONSIDERATION.—If ex-
pedited consideration is necessary to provide for
bulk-power system reliability, the affiliated re-
gional reliability entity may—
‘‘(i) request that the electric reliability
organization expedite consideration of the
proposal; and
‘‘(ii) file a notice of the request with
the Commission.
‘‘(C) FAILURE TO ACT.—
‘‘(i) IN GENERAL.—If the electric reli-
ability organization fails to adopt the vari-
ance or entity rule, in whole or in part, the
affiliated regional reliability entity may re-
quest that the Commission review the pro-
posal.
‘‘(ii) ACTION BY THE COMMISSION.—
If the Commission determines, after a re-
view of the request, that the action of the
electric reliability organization did not con-
form to the applicable standards and pro-
cedures approved by the Commission, or if
the Commission determines that the vari-
ance or entity rule is just, reasonable, not
unduly discriminatory or preferential, and
in the public interest and that the electric
reliability organization has unreasonably
rejected or failed to act on the proposal,
the Commission may—
‘‘(I) remand the proposal for fur-
ther consideration by the electric reli-
ability organization; or
‘‘(II) order the electric reliability
organization or the affiliated regional
reliability entity to develop a variance
or entity rule consistent with that re-
quested by the affiliated regional reli-
ability entity.
‘‘(D) PROCEDURE.—A variance or entity
rule proposed by an affiliated regional reliability
entity shall be submitted to the electric reli-
ability organization for review and submission
to the Commission in accordance with the pro-
cedures specified in paragraph (2).
‘‘(5) IMMEDIATE EFFECTIVENESS.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of this subsection, a new or
modified organization standard shall take effect
immediately on submission to the Commission
without notice or comment if the electric reli-
ability organization—
‘‘(i) determines that an emergency ex-
ists requiring that the new or modified or-
ganization standard take effect imme-
diately without notice or comment;
‘‘(ii) notifies the Commission as soon
as practicable after making the determina-
tion;
‘‘(iii) submits the new or modified or-
ganization standard to the Commission not
later than 5 days after making the deter-
mination; and
‘‘(iv) includes in the submission an ex-
planation of the need for immediate effec-
tiveness.
‘‘(B) NOTICE AND COMMENT.—The Com-
mission shall—
‘‘(i) provide notice of the new or modi-
fied organization standard or amendment
for comment; and
‘‘(ii) follow the procedures set out in
paragraphs (2) and (3) for review of the
new or modified organization standard.
‘‘(1) SUBMISSION TO THE COMMISSION.—The
electric reliability organization shall submit to the
Commission—
‘‘(A) any proposed change in a procedure,
governance, or funding provision; or
‘‘(B) any change in an affiliated regional
reliability entity’s procedure, governance, or
funding provision relating to delegated func-
tions.
‘‘(2) CONTENTS.—A submission under para-
graph (1) shall include an explanation of the basis
and purpose for the change.
‘‘(3) EFFECTIVENESS.—
‘‘(A) CHANGES IN PROCEDURE.—
‘‘(i) 
CHANGES
CONSTITUTING
A
STATEMENT OF POLICY, PRACTICE, OR IN-
TERPRETATION.—A proposed change in
procedure shall take effect 90 days after
submission to the Commission if the
change constitutes a statement of policy,
practice, or interpretation with respect to
the meaning or enforcement of the proce-
dure.
‘‘(ii) OTHER
CHANGES.—A proposed
change in procedure other than a change
described in clause (i) shall take effect on
a finding by the Commission, after notice
and opportunity for comment, that the
change—
‘‘(I) is just, reasonable, not un-
duly discriminatory or preferential,
and in the public interest; and
‘‘(II) satisfies the requirements
of subsection (d)(4).
‘‘(B) CHANGES IN GOVERNANCE OR FUND-
ING.—A proposed change in governance or
funding shall not take effect unless the Com-
mission finds that the change—
‘‘(i) is just, reasonable, not unduly
discriminatory or preferential, and in the
public interest; and
‘‘(ii) satisfies the requirements of sub-
section (d)(4).
‘‘(4) ORDER TO AMEND.—
‘‘(A) IN GENERAL.—The Commission, on
complaint or on the motion of the Commission,
may require the electric reliability organization
to amend a procedural, governance, or funding
provision if the Commission determines that the
amendment is necessary to meet the require-
ments of this section.
‘‘(B) FILING.—The electric reliability or-
ganization shall submit the amendment in ac-
cordance with paragraph (1).
‘‘(h) DELEGATIONS OF AUTHORITY.—
‘‘(1) IN GENERAL.—
‘‘(A) IMPLEMENTATION
AND
ENFORCE-
MENT OF COMPLIANCE.—At the request of an
entity, the electric reliability organization shall
enter into an agreement with the entity for the
delegation of authority to implement and en-
force compliance with organization standards in
a specified geographic area if the electric reli-
ability organization finds that—
‘‘(i) the entity satisfies the require-
ments of subparagraphs (A), (B), (C), (D),
(F), (J), and (K) of subsection (d)(4); and
‘‘(ii) the delegation would promote the
effective and efficient implementation and
administration of bulk-power system reli-
ability.
‘‘(B) OTHER AUTHORITY.—The electric re-
liability organization may enter into an agree-
ment to delegate to an entity any other author-
ity, except that the electric reliability organiza-
tion shall reserve the right to set and approve
standards for bulk-power system reliability.
‘‘(2) APPROVAL BY THE COMMISSION.—
‘‘(A) SUBMISSION TO THE COMMISSION.—
The electric reliability organization shall submit
to the Commission—
‘‘(i) any agreement entered into under
this subsection; and
‘‘(ii) any information the Commission
requires with respect to the affiliated re-
gional reliability entity to which authority
is delegated.
‘‘(B) STANDARDS
FOR
APPROVAL.—The
Commission shall approve the agreement, fol-
lowing public notice and an opportunity for
comment, if the Commission finds that the
agreement—
‘‘(i) meets the requirements of para-
graph (1); and
‘‘(ii) is just, reasonable, not unduly
discriminatory or preferential, and in the
public interest.
‘‘(C) REBUTTABLE PRESUMPTION.—A pro-
posed delegation agreement with an affiliated
regional reliability entity organized on an inter-
connection-wide basis shall be rebuttably pre-
sumed by the Commission to promote the effec-
tive and efficient implementation and adminis-
tration of the reliability of the bulk-power sys-
tem.
‘‘(D) INVALIDITY ABSENT APPROVAL.—No
delegation by the electric reliability organization
shall be valid unless the delegation is approved
by the Commission.
‘‘(3) PROCEDURES
FOR
ENTITY
RULES
AND
VARIANCES.—
‘‘(A) IN
GENERAL.—A delegation agree-
ment under this subsection shall specify the
procedures by which the affiliated regional reli-
ability entity may propose entity rules or
variances for review by the electric reliability
organization.
‘‘(B) 
INTERCONNECTION-WIDE
ENTITY
RULES AND VARIANCES.— In the case of a pro-
posal for an entity rule or variance that would
apply on an interconnection-wide basis, the elec-
tric reliability organization shall approve the en-
tity rule or variance unless the electric reli-
ability organization makes a written finding
that the entity rule or variance—
‘‘(i) was not developed in a fair and
open process that provided an opportunity
for all interested parties to participate;
‘‘(ii) would have a significant adverse
impact on reliability or commerce in other
interconnections;
‘‘(iii) fails to provide a level of reli-
ability of the bulk-power system within the
interconnection such that the entity rule or
variance would be likely to cause a serious
and substantial threat to public health,
safety, welfare, or national security; or
‘‘(iv) would create a serious and sub-
stantial burden on competitive markets
within the interconnection that is not nec-
essary for reliability.
‘‘(C) NONINTERCONNECTION-WIDE ENTITY
RULES AND VARIANCES.—In the case of a pro-
posal for an entity rule or variance that would
apply only to part of an interconnection, the
electric reliability organization shall approve the
entity rule or variance if the affiliated regional
reliability 
entity 
demonstrates 
that 
the
proposal—
‘‘(i) was developed in a fair and open
process that provided an opportunity for
all interested parties to participate;
‘‘(ii) would not have an adverse im-
pact on commerce that is not necessary for
reliability;
‘‘(iii) provides a level of bulk-power
system reliability that is adequate to pro-
tect public health, safety, welfare, and na-
tional security and would not have a sig-
nificant adverse impact on reliability; and
‘‘(iv) in the case of a variance, is
based on a justifiable difference between
regions or subregions within the affiliated
regional reliability entity’s geographic area.
‘‘(D) ACTION
BY
THE
ELECTRIC
RELI-
ABILITY ORGANIZATION.—
‘‘(i) IN GENERAL.—The electric reli-
ability organization shall approve or dis-
approve a proposal under subparagraph
(A) within 120 days after the proposal is
submitted.
‘‘(ii) FAILURE TO ACT.—If the electric
reliability organization fails to act within
the time specified in clause (i), the pro-
posal shall be deemed to have been ap-
proved.
‘‘(iii) SUBMISSION
TO
THE
COMMIS-
SION.—After approving a proposal under
subparagraph (A), the electric reliability
organization shall submit the proposal to
the Commission for approval under the
procedures prescribed under subsection (e).
‘‘(E) DIRECT SUBMISSIONS.—An affiliated
regional reliability entity may not submit a pro-
posal for approval directly to the Commission
except as provided in subsection (e)(4).
‘‘(4) FAILURE TO REACH DELEGATION AGREE-
MENT.—
‘‘(A) IN
GENERAL.—If an affiliated re-
gional reliability entity requests, consistent with
paragraph (1), that the electric reliability orga-
nization delegate authority to it, but is unable
within 180 days to reach agreement with the
electric reliability organization with respect to
the requested delegation, the entity may seek
relief from the Commission.
‘‘(B) REVIEW BY THE COMMISSION.—The
Commission shall order the electric reliability
organization to enter into a delegation agree-
ment under terms specified by the Commission
if, after notice and opportunity for comment,
the Commission determines that—
‘‘(i) a delegation to the affiliated re-
gional reliability entity would—
‘‘(I) meet the requirements of
paragraph (1); and
‘‘(II) would be just, reasonable,
not unduly discriminatory or pref-
erential, and in the public interest;
and
‘‘(ii) the electric reliability organiza-
tion unreasonably withheld the delegation.
‘‘(5) ORDERS TO MODIFY DELEGATION AGREE-
MENTS.—
‘‘(A) IN GENERAL.—On complaint, or on
motion of the Commission, after notice to the
appropriate affiliated regional reliability entity,
the Commission may order the electric reli-
ability organization to propose a modification to
a delegation agreement under this subsection if
the Commission determines that—
‘‘(i) the affiliated regional reliability
entity—
‘‘(I) no longer has the capacity to
carry out effectively or efficiently the
implementation or enforcement re-
sponsibilities under the delegation
agreement;
‘‘(II) has failed to meet its obli-
gations under the delegation agree-
ment; or
‘‘(III) has violated this section;
‘‘(ii) the rules, practices, or proce-
dures of the affiliated regional reliability
entity no longer provide for fair and im-
partial discharge of the implementation or
enforcement responsibilities under the dele-
gation agreement;
‘‘(iii) the geographic boundary of a
transmission entity approved by the Com-
mission is not wholly within the boundary
of an affiliated regional reliability entity,
and the difference in boundaries is incon-
sistent with the effective and efficient im-
plementation and administration of bulk-
power system reliability; or
‘‘(iv) the agreement is inconsistent
with a delegation ordered by the Commis-
sion under paragraph (4).
‘‘(B) SUSPENSION.—
‘‘(i) 
IN
GENERAL.—Following 
an
order to modify a delegation agreement
under subparagraph (A), the Commission
may suspend the delegation agreement if
the electric reliability organization or the
affiliated regional reliability entity does not
propose an appropriate and timely modi-
fication.
‘‘(ii) ASSUMPTION
OF
RESPONSIBIL-
ITIES.—If a delegation agreement is sus-
pended, the electric reliability organization
shall assume the responsibilities delegated
under the delegation agreement.
‘‘(i) ORGANIZATION MEMBERSHIP.—Each system op-
erator shall be a member of—
‘‘(1) the electric reliability organization; and
‘‘(2) any affiliated regional reliability entity op-
erating under an agreement effective under sub-
section (h) applicable to the region in which the sys-
tem operator operates, or is responsible for the oper-
ation of, a transmission facility.
to petition the Commission for a modification
or rescission of the disciplinary action.
‘‘(D) INJUNCTIONS.—If the electric reli-
ability organization finds it necessary to prevent
a serious threat to reliability, the electric reli-
ability organization may seek injunctive relief in
the United States district court for the district
in which the affected facilities are located.
‘‘(E) EFFECTIVE DATE.—
‘‘(i) IN GENERAL.—Unless the Com-
mission, on motion of the Commission or
on application by the bulk-power system
user that is the subject of the disciplinary
action, suspends the effectiveness of a dis-
ciplinary action, the disciplinary action
shall take effect on the 30th day after the
date on which—
‘‘(I) the electric reliability organi-
zation submits to the Commission—
‘‘(aa) a written finding that
the bulk-power system user vio-
lated an organization standard;
and
‘‘(bb) the record of pro-
ceedings before the electric reli-
ability organization; and
‘‘(II) the Commission posts the
written finding on the Internet.
‘‘(ii) DURATION.—A disciplinary ac-
tion shall remain in effect or remain sus-
pended unless the Commission, after notice
and opportunity for hearing, affirms, sets
aside, modifies, or reinstates the discipli-
nary action.
‘‘(iii) EXPEDITED CONSIDERATION.—
The Commission shall conduct the hearing
under procedures established to ensure ex-
pedited consideration of the action taken.
‘‘(2) COMPLIANCE ORDERS.— The Commission,
on complaint by any person or on motion of the
Commission, may order compliance with an organi-
zation standard and may impose a penalty, limita-
tion on activities, functions, or operations, or take
such other disciplinary action as the Commission
finds appropriate, against a bulk-power system user
with respect to actions affecting or threatening to
affect bulk-power system facilities located in the
United States if the Commission finds, after notice
and opportunity for a hearing, that the bulk-power
system user has violated or threatens to violate an
organization standard.
‘‘(3) OTHER ACTIONS.—The Commission may
take such action as is necessary against the electric
reliability organization or an affiliated regional reli-
ability entity to ensure compliance with an organiza-
tion standard, or any Commission order affecting
electric reliability organization or affiliated regional
reliability entity.
‘‘(k) RELIABILITY REPORTS.—The electric reliability
organization shall—
‘‘(1) conduct periodic assessments of the reli-
ability and adequacy of the interconnected bulk-
power system in North America; and
‘‘(2) report annually to the Secretary of Energy
and the Commission its findings and recommenda-
tions for monitoring or improving system reliability
and adequacy.
‘‘(l) ASSESSMENT
AND
RECOVERY
OF
CERTAIN
COSTS.—
‘‘(1) IN GENERAL.—The reasonable costs of the
electric reliability organization, and the reasonable
costs of each affiliated regional reliability entity that
are related to implementation or enforcement of or-
ganization standards or other requirements con-
tained in a delegation agreement approved under
subsection (h), shall be assessed by the electric reli-
ability organization and each affiliated regional reli-
ability entity, respectively, taking into account the
relationship of costs to each region and based on an
allocation that reflects an equitable sharing of the
costs among all electric energy consumers.
‘‘(2) RULES.—The Commission shall provide by
rule for the review of costs and allocations under
paragraph (1) in accordance with the standards in
this subsection and subsection (d)(4)(F).
‘‘(m) APPLICATION OF ANTITRUST LAWS.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, the following activities are
rebuttably presumed to be in compliance with the
antitrust laws of the United States:
‘‘(A) Activities undertaken by the electric
reliability organization under this section or af-
filiated regional reliability entity operating
under a delegation agreement under subsection
(h).
‘‘(B) Activities of a member of the electric
reliability organization or affiliated regional re-
liability entity in pursuit of the objectives of the
electric reliability organization or affiliated re-
gional reliability entity under this section un-
dertaken in good faith under the rules of the
organization of the electric reliability organiza-
tion or affiliated regional reliability entity.
‘‘(2) AVAILABILITY OF DEFENSES.—In a civil
action brought by any person or entity against the
electric reliability organization or an affiliated re-
gional reliability entity alleging a violation of an
antitrust law based on an activity under this Act,
the defenses of primary jurisdiction and immunity
from suit and other affirmative defenses shall be
available to the extent applicable.
‘‘(n) REGIONAL ADVISORY ROLE.—
‘‘(1) ESTABLISHMENT OF REGIONAL ADVISORY
BODY.—The Commission shall establish a regional
advisory body on the petition of the Governors of at
least two-thirds of the States within a region that
have more than one-half of their electrical loads
served within the region.
‘‘(2) 
MEMBERSHIP.—A 
regional 
advisory
body—
‘‘(A) shall be composed of 1 member from
each State in the region, appointed by the Gov-
ernor of the State; and
‘‘(B) may include representatives of agen-
cies, States, and Provinces outside the United
States, on execution of an appropriate inter-
national agreement described in subsection (f).
‘‘(3) FUNCTIONS.—A regional advisory body
may provide advice to the electric reliability organi-
zation, an affiliated regional reliability entity, or the
Commission regarding—
‘‘(A) the governance of an affiliated re-
gional reliability entity existing or proposed
within a region;
‘‘(B) whether a standard proposed to apply
within the region is just, reasonable, not unduly
discriminatory or preferential, and in the public
interest; and
‘‘(C) whether fees proposed to be assessed
within the region are—
‘‘(i) just, reasonable, not unduly dis-
criminatory or preferential, and in the pub-
lic interest; and
‘‘(ii) consistent with the requirements
of subsection (l).
‘‘(4) DEFERENCE.—In a case in which a re-
gional advisory body encompasses an entire inter-
connection, the Commission may give deference to