interest, and which satisfy the requirements of sub-
section (l);
‘‘(G) establishes procedures for development of
Organization Standards that provide reasonable no-
tice and opportunity for public comment, taking into
account the need for efficiency and effectiveness in
decisionmaking and operations and the requirements
for technical competency in the development of Or-
ganization Standards, and which standards develop-
ment process has the following attributes:
‘‘(i) openness,
‘‘(ii) balance of interests, and
‘‘(iii) due process, except that the proce-
dures may include alternative procedures for
emergencies;
‘‘(H) establishes fair and impartial procedures
for implementation and enforcement of Organization
Standards, either directly or through delegation to
an affiliated regional reliability entity, including the
imposition of penalties, limitations on activities,
functions, or operations, or other appropriate sanc-
tions;
‘‘(I) establishes procedures for notice and op-
portunity for public observation of all meetings, ex-
cept that the procedures for public observation may
include alternative procedures for emergencies or for
the discussion of information the directors determine
should take place in closed session, such as litiga-
tion, personnel actions, or commercially sensitive in-
formation;
‘‘(J) provides for the consideration of rec-
ommendations of States and State commissions; and
‘‘(K) addresses other matters that the Commis-
sion may deem necessary or appropriate to ensure
that the procedures, governance, and funding of the
Electric Reliability Organization are just, reason-
able, not unduly discriminatory or preferential, and
are in the public interest.
‘‘(4) The Commission shall approve only one Electric
Reliability Organization. If the Commission receives two
or more timely applications that satisfy the requirements
of this subsection, the Commission shall approve only the
application it concludes will best implement the provisions
of this section.
‘‘(e) ESTABLISHMENT OF AND MODIFICATIONS TO
ORGANIZATION STANDARDS.—(1) The Electric Reliability
Organization shall file with the Commission any new or
modified organization standards, including any variances
or entity rules, and the Commission shall follow the proce-
dures under paragraph (2) for review of that filing.
‘‘(2) 
Submissions 
under 
paragraph 
(1) 
shall
include—
‘‘(A) a concise statement of the purpose of the
proposal, and
‘‘(B) a record of any proceedings conducted
with respect to such proposal.
The Commission shall provide notice of the filing of such
proposal and afford interested entities 30 days to submit
comments. The Commission, after taking into consider-
ation any submitted comments, shall approve or dis-
approve such proposal not later than 60 days after the
deadline for the submission of comments, except that the
Commission may extend the 60-day period for an addi-
tional 90 days for good cause, and except further that if
the Commission does not act to approve or disapprove a
proposal within the foregoing periods, the proposal shall
go into effect subject to its terms, without prejudice to
the authority of the Commission thereafter to modify the
proposal in accordance with the standards and require-
ments of this section. Proposals approved by the Commis-
sion shall take effect according to their terms but not ear-
lier than 30 days after the effective date of the Commis-
sion’s order, except as provided in paragraph (3) of this
subsection.
‘‘(3)(A) In the exercise of its review responsibilities
under this subsection, the Commission shall give due
weight to the technical expertise of the Electric Reliability
Organization with respect to the content of a new or modi-
fied organization standard, but shall not defer to the orga-
nization with respect to the effect of the standard on com-
petition. The Commission shall approve a proposed new
or modified organization standard if it determines the pro-
posal to be just, reasonable, not unduly discriminatory or
preferential, and in the public interest.
‘‘(B) An existing or proposed organization standard
which is disapproved in whole or in part by the Commis-
sion shall be remanded to the Electric Reliability Organi-
zation for further consideration.
‘‘(C) The Commission, on its own motion or upon
complaint, may direct the Electric Reliability Organization
to develop an organization standard, including modifica-
tion to an existing organization standard, addressing a
specific matter by a date certain if the Commission con-
siders such new or modified organization standard nec-
essary or appropriate to further the purposes of this sec-
tion. The Electric Reliability Organization shall file any
such new or modified organization standard in accordance
with this subsection.
‘‘(D) An affiliated regional reliability entity may pro-
pose a variance or entity rule to the Electric Reliability
Organization. The affiliated regional reliability entity may
request that the Electric Reliability Organization expedite
consideration of the proposal, and may file a notice of such
request with the Commission, if expedited consideration
is necessary to provide for bulk-power system reliability.
If the Electric Reliability Organization fails to adopt the
variance or entity rule, either in whole or in part, the affili-
ated regional reliability entity may request that the Com-
mission review such action. If the Commission determines,
after its review of such a request, that the action of the
Electric Reliability Organization did not conform to the
applicable standards and procedures approved by the
Commission, or if the Commission determines that the
variance or entity rule is just, reasonable, not unduly dis-
criminatory or preferential, and in the public interest, and
that the Electric Reliability Organization has unreason-
ably rejected the proposed variance or entity rule, then
the Commission may remand the proposed variance or en-
tity rule for further consideration by the Electric Reli-
ability Organization or may direct 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 reliability entity. Any
such variance or entity rule proposed by an affiliated re-
gional reliability entity shall be submitted to the Electric
Reliability Organization for review and filing with the
Commission in accordance with the procedures specified
in this subsection.
‘‘(E) Notwithstanding any other provision of this sub-
section, a proposed organization standard or amendment
shall take effect according to its terms if the Electric Reli-
ability Organization determines that an emergency exists
requiring that such proposed organization standard or
amendment take effect without notice or comment. The
Electric Reliability Organization shall notify the Commis-
sion immediately following such determination and shall
file such emergency organization standard or amendment
with the Commission not later than 5 days following such
determination and shall include in such filing an expla-
nation of the need for such emergency standard. Subse-
quently, the Commission shall provide notice of the organi-
zation standard or amendment for comment, and shall fol-
low the procedures set out in paragraphs (2) and (3) for
review of the new or modified organization standard.
‘‘(4) All users of the bulk-power system shall comply
with any organization standard that takes effect under
this section.
‘‘(f) COORDINATION WITH CANADA AND MEXICO.—
The Electric Reliability Organization shall take all appro-
priate steps to gain recognition in Canada and Mexico.
The United States shall use its best efforts to enter into
international agreements with the appropriate govern-
ments of Canada and Mexico to provide for effective com-
pliance with organization standards and to provide for the
effectiveness of the Electric Reliability Organization in
carrying out its mission and responsibilities. All actions
taken by the Electric Reliability Organization, any affili-
ated regional reliability entity, and the Commission shall
be consistent with the provisions of such international
agreements.
‘‘(g) CHANGES IN PROCEDURES, GOVERNANCE, OR
FUNDING.—(1) The Electric Reliability Organization shall
file with the Commission any proposed change in its proce-
dures, governance, or funding, or any changes in the affili-
ated regional reliability entity’s procedures, governance, or
funding relating to delegated functions, and shall include
with the filing an explanation of the basis and purpose
for the change.
‘‘(2) A proposed procedural change may take effect
90 days after filing with the Commission if the change
constitutes a statement of policy, practice, or interpreta-
tion with respect to the meaning or enforcement of an ex-