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ation of the bulk-power system, but the term does
not include any requirement to enlarge such facilities
or to construct new transmission capacity or genera-
tion capacity.
‘‘(4) The term ‘reliable operation’ means oper-
ating the elements of the bulk-power system within
equipment and electric system thermal, voltage, and
stability limits so that instability, uncontrolled sepa-
ration, 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.
‘‘(5) The term ‘Interconnection’ means a geo-
graphic area in which the operation of bulk-power
system components is synchronized such that the
failure of 1 or more of such components may ad-
versely 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, Inde-
pendent System Operator, independent transmission
provider, or other transmission organization finally
approved by the Commission for the operation of
transmission facilities.
509
‘‘(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 pur-
poses 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 imple-
ment the requirements of this section not later than 180
days after the date of enactment of this section.
510
‘‘(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 1 such ERO if the Commission determines
that such ERO—
‘‘(1) has the ability to develop and enforce, sub-
ject 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 rep-
resentation in the selection of its directors and
balanced decisionmaking in any ERO com-
mittee 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 activi-
511
ties, functions, or operations, or other appro-
priate sanctions);
‘‘(D) provide for reasonable notice and op-
portunity for public comment, due process,
openness, and balance of interests in developing
reliability standards and otherwise exercising its
duties; and
‘‘(E) provide for taking, after certification,
appropriate steps to gain recognition in Canada
and Mexico.
The total amount of all dues, fees, and other charges
collected by the ERO in each of the fiscal years
2006 through 2015 and allocated under subpara-
graph (B) shall not exceed $50,000,000.
‘‘(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 Commis-
sion.
‘‘(2) The Commission may approve, by rule or order,
a proposed reliability standard or modification to a reli-
ability 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
512
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 ap-
plicable on an Interconnection-wide basis is just, reason-
able, 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 pro-
posed 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 stand-
ard or a modification to a reliability standard that ad-
dresses a specific matter if the Commission considers such