IB 
Union Calendar No. 265 
114TH CONGRESS 
1ST SESSION 
H. R. 8 
[Report No. 114–347, Part I] 
To modernize energy infrastructure, build a 21st century energy and manufac-
turing workforce, bolster America’s energy security and diplomacy, and 
promote energy efficiency and government accountability, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 16, 2015 
Mr. UPTON introduced the following bill; which was referred to the Committee 
on Energy and Commerce, and in addition to the Committees on Science, 
Space, and Technology, Education and the Workforce, Oversight and 
Government Reform, and Foreign Affairs, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
NOVEMBER 19, 2015 
Reported from the Committee on Energy and Commerce 
[Strike out all after the enacting clause and insert the part printed in italic] 
NOVEMBER 19, 2015 
The Committees on Science, Space, and Technology, Education and the Work-
force, Oversight and Government Reform, and Foreign Affairs dis-
charged; committed to the Committee of the Whole House on the State 
of the Union and ordered to be printed 
[For text of introduced bill, see copy of bill as introduced on September 16, 2015] 
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A BILL 
To modernize energy infrastructure, build a 21st century 
energy and manufacturing workforce, bolster America’s 
energy security and diplomacy, and promote energy effi-
ciency and government accountability, and for other pur-
poses. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘North American Energy Security and Infrastructure Act 
of 2015’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—MODERNIZING AND PROTECTING INFRASTRUCTURE 
Subtitle A—Energy Delivery, Reliability, and Security 
Sec. 1101. FERC process coordination. 
Sec. 1102. Resolving environmental and grid reliability conflicts. 
Sec. 1103. Emergency preparedness for energy supply disruptions. 
Sec. 1104. Critical electric infrastructure security. 
Sec. 1105. Strategic Transformer Reserve. 
Sec. 1106. Cyber Sense. 
Sec. 1107. State coverage and consideration of PURPA standards for electric util-
ities. 
Sec. 1108. Reliability analysis for certain rules that affect electric generating fa-
cilities. 
Sec. 1109. Carbon capture, utilization, and sequestration technologies. 
Sec. 1110. Reliability and performance assurance in Regional Transmission Or-
ganizations. 
Subtitle B—Energy Security and Infrastructure Modernization 
Sec. 1201. Energy Security and Infrastructure Modernization Fund. 
Subtitle C—Hydropower Regulatory Modernization 
Sec. 1301. Hydroelectric production and efficiency incentives. 
Sec. 1302. Protection of private property rights in hydropower licensing. 
Sec. 1303. Extension of time for FERC project involving W. Kerr Scott Dam. 
Sec. 1304. Hydropower licensing and process improvements. 
Sec. 1305. Judicial review of delayed Federal authorizations. 
Sec. 1306. Licensing study improvements. 
Sec. 1307. Closed-loop pumped storage projects. 
Sec. 1308. License amendment improvements. 
Sec. 1309. Promoting hydropower development at existing nonpowered dams. 
TITLE II—21ST CENTURY WORKFORCE 
Sec. 2001. Energy and manufacturing workforce development. 
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TITLE III—ENERGY SECURITY AND DIPLOMACY 
Sec. 3001. Sense of Congress. 
Sec. 3002. Energy security valuation. 
Sec. 3003. North American energy security plan. 
Sec. 3004. Collective energy security. 
Sec. 3005. Strategic Petroleum Reserve mission readiness plan. 
Sec. 3006. Authorization to export natural gas. 
TITLE IV—ENERGY EFFICIENCY AND ACCOUNTABILITY 
Subtitle A—Energy Efficiency 
CHAPTER 1—FEDERAL AGENCY ENERGY EFFICIENCY 
Sec. 4111. Energy-efficient and energy-saving information technologies. 
Sec. 4112. Energy efficient data centers. 
Sec. 4113. Report on energy and water savings potential from thermal insulation. 
Sec. 4114. Federal purchase requirement. 
Sec. 4115. Energy performance requirement for Federal buildings. 
Sec. 4116. Federal building energy efficiency performance standards; certification 
system and level for Federal buildings. 
Sec. 4117. Operation of battery recharging stations in parking areas used by Fed-
eral employees. 
CHAPTER 2—ENERGY EFFICIENT TECHNOLOGY AND MANUFACTURING 
Sec. 4121. Inclusion of Smart Grid capability on Energy Guide labels. 
Sec. 4122. Voluntary verification programs for air conditioning, furnace, boiler, 
heat pump, and water heater products. 
Sec. 4123. Facilitating consensus furnace standards. 
Sec. 4124. Future of Industry program. 
Sec. 4125. No warranty for certain certified Energy Star products. 
Sec. 4126. Clarification to effective date for regional standards. 
Sec. 4127. Internet of Things report. 
CHAPTER 3—ENERGY PERFORMANCE CONTRACTING 
Sec. 4131. Use of energy and water efficiency measures in Federal buildings. 
CHAPTER 4—SCHOOL BUILDINGS 
Sec. 4141. Coordination of energy retrofitting assistance for schools. 
CHAPTER 5—BUILDING ENERGY CODES 
Sec. 4151. Greater energy efficiency in building codes. 
Sec. 4152. Voluntary nature of building asset rating program. 
CHAPTER 6—EPCA TECHNICAL CORRECTIONS AND CLARIFICATIONS 
Sec. 4161. Modifying product definitions. 
Sec. 4162. Clarifying rulemaking procedures. 
CHAPTER 7—ENERGY AND WATER EFFICIENCY 
Sec. 4171. Smart energy and water efficiency pilot program. 
Sec. 4172. WaterSense. 
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Subtitle B—Accountability 
CHAPTER 1—MARKET MANIPULATION, ENFORCEMENT, AND COMPLIANCE 
Sec. 4211. FERC Office of Compliance Assistance and Public Participation. 
CHAPTER 2—MARKET REFORMS 
Sec. 4221. GAO study on wholesale electricity markets. 
Sec. 4222. Clarification of facility merger authorization. 
CHAPTER 3—CODE MAINTENANCE 
Sec. 4231. Repeal of off-highway motor vehicles study. 
Sec. 4232. Repeal of methanol study. 
Sec. 4233. Repeal of residential energy efficiency standards study. 
Sec. 4234. Repeal of weatherization study. 
Sec. 4235. Repeal of report to Congress. 
Sec. 4236. Repeal of report by General Services Administration. 
Sec. 4237. Repeal of intergovernmental energy management planning and coordi-
nation workshops. 
Sec. 4238. Repeal of Inspector General audit survey and President’s Council on 
Integrity and Efficiency report to Congress. 
Sec. 4239. Repeal of procurement and identification of energy efficient products 
program. 
Sec. 4240. Repeal of national action plan for demand response. 
Sec. 4241. Repeal of national coal policy study. 
Sec. 4242. Repeal of study on compliance problem of small electric utility sys-
tems. 
Sec. 4243. Repeal of study of socioeconomic impacts of increased coal production 
and other energy development. 
Sec. 4244. Repeal of study of the use of petroleum and natural gas in combustors. 
Sec. 4245. Repeal of submission of reports. 
Sec. 4246. Repeal of electric utility conservation plan. 
Sec. 4247. Technical amendment to Powerplant and Industrial Fuel Use Act of 
1978. 
Sec. 4248. Emergency energy conservation repeals. 
Sec. 4249. Repeal of State utility regulatory assistance. 
Sec. 4250. Repeal of survey of energy saving potential. 
Sec. 4251. Repeal of photovoltaic energy program. 
Sec. 4252. Repeal of energy auditor training and certification. 
CHAPTER 4—USE OF EXISTING FUNDS 
Sec. 4261. Use of existing funds. 
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TITLE I—MODERNIZING AND 
PROTECTING INFRASTRUCTURE 
Subtitle A—Energy Delivery, 
Reliability, and Security 
SEC. 1101. FERC PROCESS COORDINATION. 
Section 15 of the Natural Gas Act (15 U.S.C. 717n) 
is amended— 
(1) by amending subsection (b)(2) to read as fol-
lows: 
‘‘(2) OTHER AGENCIES.— 
‘‘(A) IN GENERAL.—Each Federal and State 
agency considering an aspect of an application 
for Federal authorization shall cooperate with 
the Commission and comply with the deadlines 
established by the Commission. 
‘‘(B) IDENTIFICATION.—The Commission 
shall identify, as early as practicable after it is 
notified by a prospective applicant of a potential 
project requiring Commission authorization, any 
Federal or State agency, local government, or In-
dian tribe that may consider an aspect of an ap-
plication for that Federal authorization. 
‘‘(C) NOTIFICATION.— 
‘‘(i) IN
GENERAL.—The Commission 
shall notify any agency identified under 
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subparagraph (B) of the opportunity to co-
operate or participate in the review process. 
‘‘(ii) DEADLINE.—A notification issued 
under clause (i) shall establish a deadline 
by which a response to the notification shall 
be submitted, which may be extended by the 
Commission for good cause.’’; 
(2) in subsection (c)— 
(A) in paragraph (1)— 
(i) by striking ‘‘and’’ at the end of sub-
paragraph (A); 
(ii) by redesignating subparagraph (B) 
as subparagraph (C); and 
(iii) by inserting after subparagraph 
(A) the following new subparagraph: 
‘‘(B) set deadlines for all such Federal au-
thorizations; and’’; 
(B) by striking paragraph (2); and 
(C) by adding at the end the following new 
paragraphs: 
‘‘(2) DEADLINE
FOR
FEDERAL
AUTHORIZA-
TIONS.—A final decision on a Federal authorization 
is due no later than 90 days after the Commission 
issues its final environmental document, unless a 
schedule is otherwise established by Federal law. 
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‘‘(3) CONCURRENT REVIEWS.—Each Federal and 
State agency considering an aspect of an application 
for a Federal authorization shall— 
‘‘(A) carry out the obligations of that agen-
cy under applicable law concurrently, and in 
conjunction, with the review required by the Na-
tional Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.), unless doing so would im-
pair the ability of the agency to conduct needed 
analysis or otherwise carry out those obligations; 
‘‘(B) formulate and implement administra-
tive, policy, and procedural mechanisms to en-
able the agency to ensure completion of required 
Federal authorizations no later than 90 days 
after the Commission issues its final environ-
mental document; and 
‘‘(C) transmit to the Commission a state-
ment— 
‘‘(i) acknowledging receipt of the sched-
ule established under paragraph (1); and 
‘‘(ii) setting forth the plan formulated 
under subparagraph (B) of this paragraph. 
‘‘(4) ISSUE IDENTIFICATION AND RESOLUTION.— 
‘‘(A) IDENTIFICATION.—Federal and State 
agencies that may consider an aspect of an ap-
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plication for Federal authorization shall iden-
tify, as early as possible, any issues of concern 
that may delay or prevent an agency from work-
ing with the Commission to resolve such issues 
and granting such authorization. 
‘‘(B) ISSUE RESOLUTION.—The Commission 
may forward any issue of concern identified 
under subparagraph (A) to the heads of the rel-
evant agencies (including, in the case of a failure 
by the State agency, the Federal agency over-
seeing the delegated authority) for resolution. 
‘‘(5) FAILURE TO MEET SCHEDULE.—If a Fed-
eral or State agency does not complete a proceeding 
for an approval that is required for a Federal author-
ization in accordance with the schedule established by 
the Commission under paragraph (1)— 
‘‘(A) the applicant may pursue remedies 
under section 19(d); and 
‘‘(B) the head of the relevant Federal agency 
(including, in the case of a failure by a State 
agency, the Federal agency overseeing the dele-
gated authority) shall notify Congress and the 
Commission of such failure and set forth a rec-
ommended implementation plan to ensure com-
pletion of the proceeding for an approval.’’; 
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(3) by redesignating subsections (d) through (f) 
as subsections (g) through (i), respectively; and 
(4) by inserting after subsection (c) the following 
new subsections: 
‘‘(d) REMOTE SURVEYS.—If a Federal or State agency 
considering an aspect of an application for Federal author-
ization requires the applicant to submit environmental 
data, the agency shall consider any such data gathered by 
aerial or other remote means that the applicant submits. 
The agency may grant a conditional approval for Federal 
authorization, conditioned on the verification of such data 
by subsequent onsite inspection. 
‘‘(e) APPLICATION PROCESSING.—The Commission, 
and Federal and State agencies, may allow an applicant 
seeking Federal authorization to fund a third-party con-
tractor to assist in reviewing the application. 
‘‘(f) ACCOUNTABILITY, TRANSPARENCY, EFFICIENCY.— 
For applications requiring multiple Federal authorizations, 
the Commission, with input from any Federal or State 
agency considering an aspect of an application, shall track 
and make available to the public on the Commission’s 
website information related to the actions required to com-
plete permitting, reviews, and other actions required. Such 
information shall include the following: 
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‘‘(1) The schedule established by the Commission 
under subsection (c)(1). 
‘‘(2) A list of all the actions required by each ap-
plicable agency to complete permitting, reviews, and 
other actions necessary to obtain a final decision on 
the Federal authorization. 
‘‘(3) The expected completion date for each such 
action. 
‘‘(4) A point of contact at the agency accountable 
for each such action. 
‘‘(5) In the event that an action is still pending 
as of the expected date of completion, a brief expla-
nation of the reasons for the delay.’’. 
SEC. 1102. RESOLVING ENVIRONMENTAL AND GRID RELI-
ABILITY CONFLICTS. 
(a) COMPLIANCE WITH OR VIOLATION OF ENVIRON-
MENTAL LAWS WHILE UNDER EMERGENCY ORDER.—Sec-
tion 202(c) of the Federal Power Act (16 U.S.C. 824a(c)) 
is amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(c)’’; and 
(2) by adding at the end the following: 
‘‘(2) With respect to an order issued under this sub-
section that may result in a conflict with a requirement 
of any Federal, State, or local environmental law or regula-
tion, the Commission shall ensure that such order requires 
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generation, delivery, interchange, or transmission of electric 
energy only during hours necessary to meet the emergency 
and serve the public interest, and, to the maximum extent 
practicable, is consistent with any applicable Federal, 
State, or local environmental law or regulation and mini-
mizes any adverse environmental impacts. 
‘‘(3) To the extent any omission or action taken by 
a party, that is necessary to comply with an order issued 
under this subsection, including any omission or action 
taken to voluntarily comply with such order, results in non-
compliance with, or causes such party to not comply with, 
any Federal, State, or local environmental law or regula-
tion, such omission or action shall not be considered a viola-
tion of such environmental law or regulation, or subject 
such party to any requirement, civil or criminal liability, 
or a citizen suit under such environmental law or regula-
tion. 
‘‘(4)(A) An order issued under this subsection that 
may result in a conflict with a requirement of any Federal, 
State, or local environmental law or regulation shall expire 
not later than 90 days after it is issued. The Commission 
may renew or reissue such order pursuant to paragraphs 
(1) and (2) for subsequent periods, not to exceed 90 days 
for each period, as the Commission determines necessary to 
meet the emergency and serve the public interest. 
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‘‘(B) In renewing or reissuing an order under sub-
paragraph (A), the Commission shall consult with the pri-
mary Federal agency with expertise in the environmental 
interest protected by such law or regulation, and shall in-
clude in any such renewed or reissued order such conditions 
as such Federal agency determines necessary to minimize 
any adverse environmental impacts to the extent prac-
ticable. The conditions, if any, submitted by such Federal 
agency shall be made available to the public. The Commis-
sion may exclude such a condition from the renewed or re-
issued order if it determines that such condition would pre-
vent the order from adequately addressing the emergency 
necessitating such order and provides in the order, or other-
wise makes publicly available, an explanation of such deter-
mination. 
‘‘(5) If an order issued under this subsection is subse-
quently stayed, modified, or set aside by a court pursuant 
to section 313 or any other provision of law, any omission 
or action previously taken by a party that was necessary 
to comply with the order while the order was in effect, in-
cluding any omission or action taken to voluntarily comply 
with the order, shall remain subject to paragraph (3).’’. 
(b) TEMPORARY CONNECTION OR CONSTRUCTION BY 
MUNICIPALITIES.—Section 202(d) of the Federal Power Act 
(16 U.S.C. 824a(d)) is amended by inserting ‘‘or munici-
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pality’’ before ‘‘engaged in the transmission or sale of elec-
tric energy’’. 
SEC. 1103. EMERGENCY PREPAREDNESS FOR ENERGY SUP-
PLY DISRUPTIONS. 
(a) FINDING.—Congress finds that recent natural dis-
asters have underscored the importance of having resilient 
oil and natural gas infrastructure and effective ways for 
industry and government to communicate to address energy 
supply disruptions. 
(b) AUTHORIZATION FOR ACTIVITIES TO ENHANCE 
EMERGENCY PREPAREDNESS FOR NATURAL DISASTERS.— 
The Secretary of Energy shall develop and adopt procedures 
to— 
(1) improve communication and coordination 
between the Department of Energy’s energy response 
team, Federal partners, and industry; 
(2) leverage the Energy Information Administra-
tion’s subject matter expertise within the Depart-
ment’s energy response team to improve supply chain 
situation assessments; 
(3) establish company liaisons and direct com-
munication with the Department’s energy response 
team to improve situation assessments; 
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(4) streamline and enhance processes for obtain-
ing temporary regulatory relief to speed up emergency 
response and recovery; 
(5) facilitate and increase engagement among 
States, the oil and natural gas industry, and the De-
partment in developing State and local energy assur-
ance plans; 
(6) establish routine education and training pro-
grams for key government emergency response posi-
tions with the Department and States; and 
(7) involve States and the oil and natural gas 
industry in comprehensive drill and exercise pro-
grams. 
(c) COOPERATION.—The activities carried out under 
subsection (b) shall include collaborative efforts with State 
and local government officials and the private sector. 
(d) REPORT.—Not later than 180 days after the date 
of enactment of this Act, the Secretary of Energy shall sub-
mit to Congress a report describing the effectiveness of the 
activities authorized under this section. 
SEC. 1104. CRITICAL ELECTRIC INFRASTRUCTURE SECU-
RITY. 
(a) CRITICAL
ELECTRIC
INFRASTRUCTURE
SECU-
RITY.—Part II of the Federal Power Act (16 U.S.C. 824 
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et seq.) is amended by adding after section 215 the following 
new section: 
‘‘SEC. 215A. CRITICAL ELECTRIC INFRASTRUCTURE SECU-
RITY. 
‘‘(a) DEFINITIONS.—For purposes of this section: 
‘‘(1) BULK-POWER
SYSTEM; 
ELECTRIC
RELI-
ABILITY
ORGANIZATION; 
REGIONAL
ENTITY.—The 
terms ‘bulk-power system’, ‘Electric Reliability Orga-
nization’, and ‘regional entity’ have the meanings 
given such terms in paragraphs (1), (2), and (7) of 
section 215(a), respectively. 
‘‘(2) CRITICAL
ELECTRIC
INFRASTRUCTURE.— 
The term ‘critical electric infrastructure’ means a sys-
tem or asset of the bulk-power system, whether phys-
ical or virtual, the incapacity or destruction of which 
would negatively affect national security, economic se-
curity, public health or safety, or any combination of 
such matters. 
‘‘(3) CRITICAL ELECTRIC INFRASTRUCTURE IN-
FORMATION.—The term ‘critical electric infrastruc-
ture information’ means information related to crit-
ical electric infrastructure, or proposed critical elec-
trical infrastructure, generated by or provided to the 
Commission or other Federal agency, other than clas-
sified national security information, that is des-
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ignated as critical electric infrastructure information 
by the Commission under subsection (d)(2). Such 
term includes information that qualifies as critical 
energy infrastructure information under the Commis-
sion’s regulations. 
‘‘(4) DEFENSE CRITICAL ELECTRIC INFRASTRUC-
TURE.—The term ‘defense critical electric infrastruc-
ture’ means any electric infrastructure located in the 
United States (including the territories) that serves a 
facility designated by the Secretary pursuant to sub-
section (c), but is not owned or operated by the owner 
or operator of such facility. 
‘‘(5) ELECTROMAGNETIC PULSE.—The term ‘elec-
tromagnetic pulse’ means 1 or more pulses of electro-
magnetic energy emitted by a device capable of dis-
abling or disrupting operation of, or destroying, elec-
tronic devices or communications networks, including 
hardware, software, and data, by means of such a 
pulse. 
‘‘(6) GEOMAGNETIC
STORM.—The term ‘geo-
magnetic storm’ means a temporary disturbance of 
the Earth’s magnetic field resulting from solar activ-
ity. 
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‘‘(7) GRID
SECURITY
EMERGENCY.—The term 
‘grid security emergency’ means the occurrence or im-
minent danger of— 
‘‘(A)(i) a malicious act using electronic 
communication or an electromagnetic pulse, or a 
geomagnetic storm event, that could disrupt the 
operation of those electronic devices or commu-
nications networks, including hardware, soft-
ware, and data, that are essential to the reli-
ability of critical electric infrastructure or of de-
fense critical electric infrastructure; and 
‘‘(ii) disruption of the operation of such de-
vices or networks, with significant adverse effects 
on the reliability of critical electric infrastruc-
ture or of defense critical electric infrastructure, 
as a result of such act or event; or 
‘‘(B)(i) a direct physical attack on critical 
electric infrastructure or on defense critical elec-
tric infrastructure; and 
‘‘(ii) significant adverse effects on the reli-
ability of critical electric infrastructure or of de-
fense critical electric infrastructure as a result of 
such physical attack. 
‘‘(8) SECRETARY.—The term ‘Secretary’ means 
the Secretary of Energy. 
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‘‘(b) AUTHORITY TO ADDRESS GRID SECURITY EMER-
GENCY.— 
‘‘(1) AUTHORITY.—Whenever the President issues 
and provides to the Secretary a written directive or 
determination identifying a grid security emergency, 
the Secretary may, with or without notice, hearing, or 
report, issue such orders for emergency measures as 
are necessary in the judgment of the Secretary to pro-
tect or restore the reliability of critical electric infra-
structure or of defense critical electric infrastructure 
during such emergency. As soon as practicable but not 
later than 180 days after the date of enactment of this 
section, the Secretary shall, after notice and oppor-
tunity for comment, establish rules of procedure that 
ensure that such authority can be exercised expedi-
tiously. 
‘‘(2) NOTIFICATION
OF
CONGRESS.—Whenever 
the President issues and provides to the Secretary a 
written directive or determination under paragraph 
(1), the President shall promptly notify congressional 
committees of relevant jurisdiction, including the 
Committee on Energy and Commerce of the House of 
Representatives and the Committee on Energy and 
Natural Resources of the Senate, of the contents of, 
and justification for, such directive or determination. 
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‘‘(3) CONSULTATION.—Before issuing an order 
for emergency measures under paragraph (1), the Sec-
retary shall, to the extent practicable in light of the 
nature of the grid security emergency and the urgency 
of the need for action, consult with appropriate gov-
ernmental authorities in Canada and Mexico, entities 
described in paragraph (4), the Electricity Sub-sector 
Coordinating Council, the Commission, and other ap-
propriate Federal agencies regarding implementation 
of such emergency measures. 
‘‘(4) APPLICATION.—An order for emergency 
measures under this subsection may apply to— 
‘‘(A) the Electric Reliability Organization; 
‘‘(B) a regional entity; or 
‘‘(C) any owner, user, or operator of critical 
electric infrastructure or of defense critical elec-
tric infrastructure within the United States. 
‘‘(5) EXPIRATION AND REISSUANCE.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), an order for emergency meas-
ures issued under paragraph (1) shall expire no 
later than 15 days after its issuance. 
‘‘(B) EXTENSIONS.—The Secretary may re-
issue an order for emergency measures issued 
under paragraph (1) for subsequent periods, not 
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to exceed 15 days for each such period, provided 
that the President, for each such period, issues 
and provides to the Secretary a written directive 
or determination that the grid security emer-
gency identified under paragraph (1) continues 
to exist or that the emergency measure continues 
to be required. 
‘‘(6) COST RECOVERY.— 
‘‘(A) 
CRITICAL
ELECTRIC
INFRASTRUC-
TURE.—If the Commission determines that own-
ers, operators, or users of critical electric infra-
structure have incurred substantial costs to com-
ply with an order for emergency measures issued 
under this subsection and that such costs were 
prudently incurred and cannot reasonably be re-
covered through regulated rates or market prices 
for the electric energy or services sold by such 
owners, operators, or users, the Commission 
shall, consistent with the requirements of section 
205, after notice and an opportunity for com-
ment, establish a mechanism that permits such 
owners, operators, or users to recover such costs. 
‘‘(B) DEFENSE CRITICAL ELECTRIC INFRA-
STRUCTURE.—To the extent the owner or oper-
ator of defense critical electric infrastructure is 
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required to take emergency measures pursuant to 
an order issued under this subsection, the owners 
or operators of a critical defense facility or fa-
cilities designated by the Secretary pursuant to 
subsection (c) that rely upon such infrastructure 
shall bear the full incremental costs of the meas-
ures. 
‘‘(7) TEMPORARY ACCESS TO CLASSIFIED INFOR-
MATION.—The Secretary, and other appropriate Fed-
eral agencies, shall, to the extent practicable and con-
sistent with their obligations to protect classified in-
formation, provide temporary access to classified in-
formation related to a grid security emergency for 
which emergency measures are issued under para-
graph (1) to key personnel of any entity subject to 
such emergency measures to enable optimum commu-
nication between the entity and the Secretary and 
other appropriate Federal agencies regarding the grid 
security emergency. 
‘‘(c) DESIGNATION
OF CRITICAL DEFENSE FACILI-
TIES.—Not later than 180 days after the date of enactment 
of this section, the Secretary, in consultation with other ap-
propriate Federal agencies and appropriate owners, users, 
or operators of infrastructure that may be defense critical 
electric infrastructure, shall identify and designate facilities 
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located in the United States (including the territories) that 
are— 
‘‘(1) critical to the defense of the United States; 
and 
‘‘(2) vulnerable to a disruption of the supply of 
electric energy provided to such facility by an exter-
nal provider. 
The Secretary may, in consultation with appropriate Fed-
eral agencies and appropriate owners, users, or operators 
of defense critical electric infrastructure, periodically revise 
the list of designated facilities as necessary. 
‘‘(d) PROTECTION AND SHARING OF CRITICAL ELEC-
TRIC INFRASTRUCTURE INFORMATION.— 
‘‘(1) PROTECTION OF CRITICAL ELECTRIC INFRA-
STRUCTURE
INFORMATION.—Critical electric infra-
structure information— 
‘‘(A) shall be exempt from disclosure under 
section 552(b)(3) of title 5, United States Code; 
and 
‘‘(B) shall not be made available by any 
Federal, State, political subdivision or tribal au-
thority pursuant to any Federal, State, political 
subdivision or tribal law requiring public disclo-
sure of information or records. 
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‘‘(2) DESIGNATION AND SHARING OF CRITICAL 
ELECTRIC INFRASTRUCTURE INFORMATION.—Not later 
than one year after the date of enactment of this sec-
tion, the Commission, in consultation with the Sec-
retary of Energy, shall promulgate such regulations 
and issue such orders as necessary to— 
‘‘(A) designate information as critical elec-
tric infrastructure information; 
‘‘(B) prohibit the unauthorized disclosure of 
critical electric infrastructure information; 
‘‘(C) ensure there are appropriate sanctions 
in place for Commissioners, officers, employees, 
or agents of the Commission who knowingly and 
willfully disclose critical electric infrastructure 
information in a manner that is not authorized 
under this section; and 
‘‘(D) taking into account standards of the 
Electric Reliability Organization, facilitate vol-
untary sharing of critical electric infrastructure 
information with, between, and by— 
‘‘(i) Federal, State, political subdivi-
sion, and tribal authorities; 
‘‘(ii) the Electric Reliability Organiza-
tion; 
‘‘(iii) regional entities; 
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‘‘(iv) information sharing and analysis 
centers established pursuant to Presidential 
Decision Directive 63; 
‘‘(v) owners, operators, and users of 
critical electric infrastructure in the United 
States; and 
‘‘(vi) other entities determined appro-
priate by the Commission. 
‘‘(3) CONSIDERATIONS.—In promulgating regu-
lations and issuing orders under paragraph (2), the 
Commission shall take into consideration the role of 
State commissions in reviewing the prudence and cost 
of investments, determining the rates and terms of 
conditions for electric services, and ensuring the safe-
ty and reliability of the bulk-power system and dis-
tribution facilities within their respective jurisdic-
tions. 
‘‘(4) PROTOCOLS.—The Commission shall, in 
consultation with Canadian and Mexican authorities, 
develop protocols for the voluntary sharing of critical 
electric infrastructure information with Canadian 
and Mexican authorities and owners, operators, and 
users of the bulk-power system outside the United 
States. 
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‘‘(5) NO REQUIRED SHARING OF INFORMATION.— 
Nothing in this section shall require a person or enti-
ty in possession of critical electric infrastructure in-
formation to share such information with Federal, 
State, political subdivision, or tribal authorities, or 
any other person or entity. 
‘‘(6) SUBMISSION
OF
INFORMATION
TO
CON-
GRESS.—Nothing in this section shall permit or au-
thorize the withholding of information from Congress, 
any committee or subcommittee thereof, or the Comp-
troller General. 
‘‘(7) DISCLOSURE OF NONPROTECTED INFORMA-
TION.—In implementing this section, the Commission 
shall protect from disclosure only the minimum 
amount of information necessary to protect the secu-
rity and reliability of the bulk-power system and dis-
tribution facilities. The Commission shall segregate 
critical electric infrastructure information within 
documents and electronic communications, wherever 
feasible, to facilitate disclosure of information that is 
not designated as critical electric infrastructure infor-
mation. 
‘‘(8) DURATION OF DESIGNATION.—Information 
may not be designated as critical electric infrastruc-
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ture information for longer than 5 years, unless spe-
cifically re-designated by the Commission. 
‘‘(9) REMOVAL OF DESIGNATION.—The Commis-
sion shall remove the designation of critical electric 
infrastructure information, in whole or in part, from 
a document or electronic communication if the Com-
mission determines that the unauthorized disclosure of 
such information could no longer be used to impair 
the security or reliability of the bulk-power system or 
distribution facilities. 
‘‘(10) JUDICIAL
REVIEW
OF
DESIGNATIONS.— 
Notwithstanding section 313(b), any determination 
by the Commission concerning the designation of crit-
ical electric infrastructure information under this 
subsection shall be subject to review under chapter 7 
of title 5, United States Code, except that such review 
shall be brought in the district court of the United 
States in the district in which the complainant re-
sides, or has his principal place of business, or in the 
District of Columbia. In such a case the court shall 
examine in camera the contents of documents or elec-
tronic communications that are the subject of the de-
termination under review to determine whether such 
documents or any part thereof were improperly des-
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ignated or not designated as critical electric infra-
structure information. 
‘‘(e) SECURITY CLEARANCES.—The Secretary shall fa-
cilitate and, to the extent practicable, expedite the acquisi-
tion of adequate security clearances by key personnel of any 
entity subject to the requirements of this section, to enable 
optimum communication with Federal agencies regarding 
threats to the security of the critical electric infrastructure. 
The Secretary, the Commission, and other appropriate Fed-
eral agencies shall, to the extent practicable and consistent 
with their obligations to protect classified and critical elec-
tric infrastructure information, share timely actionable in-
formation regarding grid security with appropriate key 
personnel of owners, operators, and users of the critical elec-
tric infrastructure. 
‘‘(f) CLARIFICATIONS OF LIABILITY.— 
‘‘(1) COMPLIANCE WITH OR VIOLATION OF THIS 
ACT.—Except as provided in paragraph (4), to the ex-
tent any action or omission taken by an entity that 
is necessary to comply with an order for emergency 
measures issued under subsection (b)(1), including 
any action or omission taken to voluntarily comply 
with such order, results in noncompliance with, or 
causes such entity not to comply with any rule, order, 
regulation, or provision of this Act, including any re-
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liability standard approved by the Commission pur-
suant to section 215, such action or omission shall 
not be considered a violation of such rule, order, regu-
lation, or provision. 
‘‘(2) RELATION TO SECTION 202(c).—Except as 
provided in paragraph (4), an action or omission 
taken by an owner, operator, or user of critical elec-
tric infrastructure or of defense critical electric infra-
structure to comply with an order for emergency 
measures issued under subsection (b)(1) shall be treat-
ed as an action or omission taken to comply with an 
order issued under section 202(c) for purposes of such 
section. 
‘‘(3) SHARING OR RECEIPT OF INFORMATION.— 
No cause of action shall lie or be maintained in any 
Federal or State court for the sharing or receipt of in-
formation under, and that is conducted in accordance 
with, subsection (d). 
‘‘(4) RULE OF CONSTRUCTION.—Nothing in this 
subsection shall be construed to require dismissal of a 
cause of action against an entity that, in the course 
of complying with an order for emergency measures 
issued under subsection (b)(1) by taking an action or 
omission for which they would be liable but for para-
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graph (1) or (2), takes such action or omission in a 
grossly negligent manner.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) JURISDICTION.—Section 201(b)(2) of the 
Federal Power Act (16 U.S.C. 824(b)(2)) is amended 
by inserting ‘‘215A,’’ after ‘‘215,’’ each place it ap-
pears. 
(2) PUBLIC UTILITY.—Section 201(e) of the Fed-
eral Power Act (16 U.S.C. 824(e)) is amended by in-
serting ‘‘215A,’’ after ‘‘215,’’. 
SEC. 1105. STRATEGIC TRANSFORMER RESERVE. 
(a) FINDING.—Congress finds that the storage of stra-
tegically located spare large power transformers and emer-
gency mobile substations will reduce the vulnerability of the 
United States to multiple risks facing electric grid reli-
ability, including physical attack, cyber attack, electro-
magnetic pulse, geomagnetic disturbances, severe weather, 
and seismic events. 
(b) DEFINITIONS.—In this section: 
(1) BULK-POWER
SYSTEM.—The term ‘‘bulk- 
power system’’ has the meaning given such term in 
section 215(a) of the Federal Power Act (16 U.S.C. 
824o(a)). 
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(2) CRITICALLY DAMAGED LARGE POWER TRANS-
FORMER.—The term ‘‘critically damaged large power 
transformer’’ means a large power transformer that— 
(A) has sustained extensive damage such 
that— 
(i) repair or refurbishment is not eco-
nomically viable; or 
(ii) the extensive time to repair or re-
furbish the large power transformer would 
create an extended period of instability in 
the bulk-power system; and 
(B) prior to sustaining such damage, was 
part of the bulk-power system. 
(3) CRITICAL ELECTRIC INFRASTRUCTURE.—The 
term ‘‘critical electric infrastructure’’ has the mean-
ing given that term in section 215A of the Federal 
Power Act. 
(4) ELECTRIC RELIABILITY ORGANIZATION.—The 
term ‘‘Electric Reliability Organization’’ has the 
meaning given such term in section 215(a) of the Fed-
eral Power Act (16 U.S.C. 824o(a)). 
(5) 
EMERGENCY
MOBILE
SUBSTATION.—The 
term ‘‘emergency mobile substation’’ means a mobile 
substation or mobile transformer that is— 
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(A) assembled and permanently mounted on 
a trailer that is capable of highway travel and 
meets relevant Department of Transportation 
regulations; and 
(B) intended for express deployment and ca-
pable of being rapidly placed into service. 
(6) LARGE
POWER
TRANSFORMER.—The term 
‘‘large power transformer’’ means a power trans-
former with a maximum nameplate rating of 100 
megavolt-amperes or higher, including related critical 
equipment, that is, or is intended to be, a part of the 
bulk-power system. 
(7) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(8) SPARE LARGE POWER TRANSFORMER.—The 
term ‘‘spare large power transformer’’ means a large 
power transformer that is stored within the Strategic 
Transformer Reserve to be available to temporarily 
replace a critically damaged large power transformer. 
(c) STRATEGIC TRANSFORMER RESERVE PLAN.— 
(1) PLAN.—Not later than one year after the 
date of enactment of this Act, the Secretary, acting 
through the Office of Electricity Delivery and Energy 
Reliability, shall, in consultation with the Federal 
Energy Regulatory Commission, the Electricity Sub- 
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sector Coordinating Council, the Electric Reliability 
Organization, and owners and operators of critical 
electric infrastructure and defense and military in-
stallations, prepare and submit to Congress a plan to 
establish a Strategic Transformer Reserve for the stor-
age, in strategically located facilities, of spare large 
power transformers and emergency mobile substations 
in sufficient numbers to temporarily replace critically 
damaged large power transformers and substations 
that are critical electric infrastructure or serve de-
fense and military installations. 
(2) INCLUSIONS.—The Strategic Transformer 
Reserve plan shall include a description of— 
(A) the appropriate number and type of 
spare large power transformers necessary to pro-
vide or restore sufficient resiliency to the bulk- 
power system, critical electric infrastructure, 
and defense and military installations to miti-
gate significant impacts to the electric grid re-
sulting from— 
(i) physical attack; 
(ii) cyber attack; 
(iii) electromagnetic pulse attack; 
(iv) geomagnetic disturbances; 
(v) severe weather; or 
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(vi) seismic events; 
(B) other critical electric grid equipment for 
which an inventory of spare equipment, includ-
ing emergency mobile substations, is necessary to 
provide or restore sufficient resiliency to the 
bulk-power system, critical electric infrastruc-
ture, and defense and military installations; 
(C) the degree to which utility sector actions 
or initiatives, including individual utility own-
ership of spare equipment, joint ownership of 
spare equipment inventory, sharing agreements, 
or other spare equipment reserves or arrange-
ments, satisfy the needs identified under sub-
paragraphs (A) and (B); 
(D) the potential locations for, and feasi-
bility and appropriate number of, strategic stor-
age locations for reserve equipment, including 
consideration of— 
(i) the physical security of such loca-
tions; 
(ii) the protection of the confidentiality 
of such locations; and 
(iii) the proximity of such locations to 
sites of potentially critically damaged large 
power transformers and substations that are 
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