‘‘(C) the unauthorized disclosure of which 
could be used in a malicious manner to impair 
the reliability of the bulk-power system or of 
defense critical electric infrastructure. 
‘‘(10) 
SECRETARY.—The 
term 
‘Secretary’ 
means the Secretary of Energy. 
‘‘(11) SECURITY.—The definition of ‘security’ 
in section 3(16) shall not apply to the provisions in 
this section. 
‘‘(b) EMERGENCY RESPONSE MEASURES.— 
‘‘(1) AUTHORITY TO ADDRESS GRID SECURITY 
THREATS.—Whenever the President issues and pro-
vides to the Commission (either directly or through 
the Secretary) a written directive or determination 
identifying an imminent grid security threat, the 
Commission may, with or without notice, hearing, or 
report, issue such orders for emergency measures as 
are necessary in its judgment to protect the reli-
ability of the bulk-power system or of defense critical 
electric infrastructure against such threat. As soon 
as practicable, but not later than 180 days after the 
date of enactment of this section, the Commission 
shall, after notice and opportunity for comment, es-
tablish rules of procedure that ensure that such au-
thority can be exercised expeditiously. 
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‘‘(2) NOTIFICATION OF CONGRESS.—Whenever 
the President issues and provides to the Commission 
(either directly or through the Secretary) a written 
directive or determination under paragraph (1), the 
President (or the Secretary, as the case may be) 
shall promptly notify congressional committees of 
relevant jurisdiction, including the Committee on 
Energy and Commerce of the House of Representa-
tives and the Committee on Energy and Natural Re-
sources of the Senate, of the contents of, and jus-
tification for, such directive or determination. 
‘‘(3) CONSULTATION.—Before issuing an order 
for emergency measures under paragraph (1), the 
Commission shall, to the extent practicable in light 
of the nature of the grid security threat and the ur-
gency of the need for such emergency measures, con-
sult with the Secretary, other appropriate Federal 
agencies, appropriate governmental authorities in 
Canada and Mexico, the Electric Reliability Organi-
zation, and entities described in paragraph (4). 
‘‘(4) APPLICATION.—An order for emergency 
measures under this subsection may apply to— 
‘‘(A) a regional entity; or 
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‘‘(B) any owner, user, or operator of the 
bulk-power system or of defense critical electric 
infrastructure within the United States. 
‘‘(5) DISCONTINUANCE.—The Commission shall 
issue an order discontinuing any emergency meas-
ures ordered under this subsection, effective not 
later than 30 days after the earliest of the following: 
‘‘(A) The date upon which the President 
issues and provides to the Commission (either 
directly or through the Secretary) a written di-
rective or determination that the grid security 
threat identified under paragraph (1) no longer 
exists. 
‘‘(B) The date upon which the Commission 
issues a written determination that the emer-
gency measures are no longer needed to address 
the grid security threat identified under para-
graph (1), including by means of Commission 
approval of a reliability standard under section 
215 that the Commission determines adequately 
addresses such threat. 
‘‘(C) The date that is 1 year after the 
issuance of an order under paragraph (1). 
‘‘(6) COST RECOVERY.—If the Commission de-
termines that owners, operators, or users of the 
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bulk-power system or of defense critical electric in-
frastructure have incurred substantial costs to com-
ply with an order under this subsection or subsection 
(c) and that such costs were prudently incurred and 
cannot reasonably be recovered through regulated 
rates or market prices for the electric energy or 
services sold by such owners, operators, or users, the 
Commission shall, after notice and an opportunity 
for comment, establish a mechanism that permits 
such owners, operators, or users to recover such 
costs. 
‘‘(c) MEASURES
TO
ADDRESS
GRID
SECURITY 
VULNERABILITIES.— 
‘‘(1) COMMISSION AUTHORITY.— 
‘‘(A) RELIABILITY
STANDARDS.—If the 
Commission, in consultation with appropriate 
Federal agencies, identifies a grid security vul-
nerability that the Commission determines has 
not adequately been addressed through a reli-
ability standard developed and approved under 
section 215, the Commission shall, after notice 
and opportunity for comment and after con-
sultation with the Secretary, other appropriate 
Federal agencies, and appropriate governmental 
authorities in Canada and Mexico, issue an 
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order directing the Electric Reliability Organi-
zation to submit to the Commission for ap-
proval under section 215, not later than 30 
days after the issuance of such order, a reli-
ability standard requiring implementation, by 
any owner, operator, or user of the bulk-power 
system in the United States, of measures to 
protect the bulk-power system against such vul-
nerability. Any such standard shall include a 
protection plan, including automated hardware- 
based solutions. The Commission shall approve 
a reliability standard submitted pursuant to 
this subparagraph, unless the Commission de-
termines that such reliability standard does not 
adequately protect against such vulnerability or 
otherwise does not satisfy the requirements of 
section 215. 
‘‘(B) MEASURES TO ADDRESS GRID SECU-
RITY
VULNERABILITIES.—If the Commission, 
after notice and opportunity for comment and 
after consultation with the Secretary, other ap-
propriate Federal agencies, and appropriate 
governmental authorities in Canada and Mex-
ico, determines that the reliability standard 
submitted by the Electric Reliability Organiza-
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tion to address a grid security vulnerability 
identified under subparagraph (A) does not 
adequately protect the bulk-power system 
against such vulnerability, the Commission shall 
promulgate a rule or issue an order requiring 
implementation, by any owner, operator, or user 
of the bulk-power system in the United States, 
of measures to protect the bulk-power system 
against such vulnerability. Any such rule or 
order shall include a protection plan, including 
automated hardware-based solutions. Before 
promulgating a rule or issuing an order under 
this subparagraph, the Commission shall, to the 
extent practicable in light of the urgency of the 
need for action to address the grid security vul-
nerability, request and consider recommenda-
tions from the Electric Reliability Organization 
regarding such rule or order. The Commission 
may establish an appropriate deadline for the 
submission of such recommendations. 
‘‘(2) RESCISSION.—The Commission shall ap-
prove a reliability standard developed under section 
215 that addresses a grid security vulnerability that 
is the subject of a rule or order under paragraph 
(1)(B), unless the Commission determines that such 
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reliability standard does not adequately protect 
against such vulnerability or otherwise does not sat-
isfy the requirements of section 215. Upon such ap-
proval, the Commission shall rescind the rule pro-
mulgated or order issued under paragraph (1)(B) 
addressing such vulnerability, effective upon the ef-
fective date of the newly approved reliability stand-
ard. 
‘‘(3) GEOMAGNETIC
STORMS
AND
ELECTRO-
MAGNETIC PULSE.—Not later than 6 months after 
the date of enactment of this section, the Commis-
sion shall, after notice and an opportunity for com-
ment and after consultation with the Secretary and 
other appropriate Federal agencies, issue an order 
directing the Electric Reliability Organization to 
submit to the Commission for approval under section 
215, not later than 6 months after the issuance of 
such order, reliability standards adequate to protect 
the bulk-power system from any reasonably foresee-
able geomagnetic storm or electromagnetic pulse 
event. The Commission’s order shall specify the na-
ture and magnitude of the reasonably foreseeable 
events against which such standards must protect. 
Such standards shall appropriately balance the risks 
to the bulk-power system associated with such 
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events, including any regional variation in such 
risks, the costs of mitigating such risks, and the pri-
orities and timing associated with implementation. If 
the Commission determines that the reliability 
standards submitted by the Electric Reliability Or-
ganization pursuant to this paragraph are inad-
equate, the Commission shall promulgate a rule or 
issue an order adequate to protect the bulk-power 
system from geomagnetic storms or electromagnetic 
pulse as required under paragraph (1)(B). 
‘‘(4) LARGE
TRANSFORMER
AVAILABILITY.— 
Not later than 1 year after the date of enactment 
of this section, the Commission shall, after notice 
and an opportunity for comment and after consulta-
tion with the Secretary and other appropriate Fed-
eral agencies, issue an order directing the Electric 
Reliability Organization to submit to the Commis-
sion for approval under section 215, not later than 
1 year after the issuance of such order, reliability 
standards addressing availability of large trans-
formers. Such standards shall require entities that 
own or operate large transformers to ensure, individ-
ually or jointly, adequate availability of large trans-
formers to promptly restore the reliable operation of 
the bulk-power system in the event that any such 
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transformer is destroyed or disabled as a result of 
a geomagnetic storm event or electromagnetic pulse 
event. The Commission’s order shall specify the na-
ture and magnitude of the reasonably foreseeable 
events that shall provide the basis for such stand-
ards. Such standards shall— 
‘‘(A) provide entities subject to the stand-
ards with the option of meeting such standards 
individually or jointly; and 
‘‘(B) appropriately balance the risks asso-
ciated with a reasonably foreseeable event, in-
cluding any regional variation in such risks, and 
the costs of ensuring adequate availability of 
spare transformers. 
‘‘(d) CRITICAL DEFENSE FACILITIES.— 
‘‘(1) DESIGNATION.—Not later than 180 days 
after the date of enactment of this section, the 
President shall designate, in a written directive or 
determination provided to the Commission, facilities 
located in the United States (including the terri-
tories) that are— 
‘‘(A) critical to the defense of the United 
States; and 
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‘‘(B) vulnerable to a disruption of the sup-
ply of electric energy provided to such facility 
by an external provider. 
The number of facilities designated by such directive 
or determination shall not exceed 100. The Presi-
dent may periodically revise the list of designated fa-
cilities through a subsequent written directive or de-
termination provided to the Commission, provided 
that the total number of designated facilities at any 
time shall not exceed 100. 
‘‘(2) COMMISSION AUTHORITY.—If the Commis-
sion identifies a defense critical electric infrastruc-
ture vulnerability that the Commission, in consulta-
tion with owners and operators of any facility or fa-
cilities designated by the President pursuant to 
paragraph (1), determines has not adequately been 
addressed through measures undertaken by owners 
or operators of defense critical electric infrastruc-
ture, the Commission shall, after notice and an op-
portunity for comment and after consultation with 
the Secretary and other appropriate Federal agen-
cies, promulgate a rule or issue an order requiring 
implementation, by any owner or operator of defense 
critical electric infrastructure, of measures to protect 
the defense critical electric infrastructure against 
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such vulnerability. The Commission shall exempt 
from any such rule or order any specific defense 
critical electric infrastructure that the Commission 
determines already has been adequately protected 
against the identified vulnerability. The Commission 
shall make any such determination in consultation 
with the owner or operator of the facility designated 
by the President pursuant to paragraph (1) that re-
lies upon such defense critical electric infrastructure. 
‘‘(3) COST RECOVERY.—An owner or operator 
of defense critical electric infrastructure shall be re-
quired to take measures under paragraph (2) only to 
the extent that the owners or operators of a facility 
or facilities designated by the President pursuant to 
paragraph (1) that rely upon such infrastructure 
agree to bear the full incremental costs of compli-
ance with a rule promulgated or order issued under 
paragraph (2). 
‘‘(e) PROTECTION OF INFORMATION.— 
‘‘(1) PROHIBITION OF PUBLIC DISCLOSURE OF 
PROTECTED
INFORMATION.—Protected information 
shall— 
‘‘(A) be exempt from disclosure under sec-
tion 552(b)(3) of title 5, United States Code; 
and 
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‘‘(B) not be made available pursuant to 
any State, local, or tribal law requiring disclo-
sure of information or records. 
‘‘(2) INFORMATION SHARING.— 
‘‘(A) IN
GENERAL.—Consistent with the 
Controlled Unclassified Information framework 
established by the President, the Commission 
shall promulgate such regulations and issue 
such orders as necessary to designate protected 
information and to prohibit the unauthorized 
disclosure of such protected information. 
‘‘(B) SHARING OF PROTECTED INFORMA-
TION.—The regulations promulgated and orders 
issued pursuant to subparagraph (A) shall pro-
vide standards for and facilitate the appropriate 
sharing of protected information with, between, 
and by Federal, State, local, and tribal authori-
ties, the Electric Reliability Organization, re-
gional entities, and owners, operators, and 
users of the bulk-power system in the United 
States and of defense critical electric infrastruc-
ture. In promulgating such regulations and 
issuing such orders, the Commission shall take 
account of the role of State commissions in re-
viewing the prudence and cost of investments 
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within their respective jurisdictions. The Com-
mission shall consult with appropriate Canadian 
and Mexican authorities to develop protocols for 
the sharing of protected information with, be-
tween, and by appropriate Canadian and Mexi-
can authorities and owners, operators, and 
users of the bulk-power system outside the 
United States. 
‘‘(3) SUBMISSION
OF
INFORMATION
TO
CON-
GRESS.—Nothing in this section shall permit or au-
thorize the withholding of information from Con-
gress, any committee or subcommittee thereof, or 
the Comptroller General. 
‘‘(4) DISCLOSURE OF NONPROTECTED INFOR-
MATION.—In implementing this section, the Com-
mission shall protect from disclosure only the min-
imum amount of information necessary to protect 
the reliability of the bulk-power system and of de-
fense critical electric infrastructure. The Commission 
shall segregate protected information within docu-
ments and electronic communications, wherever fea-
sible, to facilitate disclosure of information that is 
not designated as protected information. 
‘‘(5) DURATION
OF
DESIGNATION.—Informa-
tion may not be designated as protected information 
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for longer than 5 years, unless specifically redesig-
nated by the Commission. 
‘‘(6) REMOVAL OF DESIGNATION.—The Com-
mission may remove the designation of protected in-
formation, in whole or in part, from a document or 
electronic communication if the unauthorized disclo-
sure of such information could no longer be used to 
impair the reliability of the bulk-power system or of 
defense critical electric infrastructure. 
‘‘(7) JUDICIAL
REVIEW
OF
DESIGNATIONS.— 
Notwithstanding subsection (f) of this section or sec-
tion 313, a person or entity may seek judicial review 
of a determination by the Commission concerning 
the designation of protected information under this 
subsection exclusively in the district court of the 
United States in the district in which the complain-
ant resides, or has his principal place of business, or 
in the District of Columbia. In such a case the court 
shall determine the matter de novo, and may exam-
ine the contents of documents or electronic commu-
nications designated as protected information in 
camera to determine whether such documents or any 
part thereof were improperly designated as protected 
information. The burden is on the Commission to 
sustain its designation. 
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‘‘(f) JUDICIAL REVIEW.—The Commission shall act 
expeditiously to resolve all applications for rehearing of 
orders issued pursuant to this section that are filed under 
section 313(a). Any party seeking judicial review pursuant 
to section 313 of an order issued under this section may 
obtain such review only in the United States Court of Ap-
peals for the District of Columbia Circuit. 
‘‘(g) PROVISION OF ASSISTANCE TO INDUSTRY IN 
MEETING GRID SECURITY PROTECTION NEEDS.— 
‘‘(1) EXPERTISE AND RESOURCES.—The Sec-
retary shall establish a program, in consultation with 
other appropriate Federal agencies, to develop tech-
nical expertise in the protection of systems for the 
generation, transmission, and distribution of electric 
energy against geomagnetic storms or malicious acts 
using electromagnetic pulse that would pose a sub-
stantial risk of disruption to the operation of those 
electronic devices or communications networks, in-
cluding hardware, software, and data, that are es-
sential to the reliability of such systems. Such pro-
gram shall include the identification and develop-
ment of appropriate technical and electronic re-
sources, including hardware, software, and system 
equipment. 
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‘‘(2) SHARING
EXPERTISE.—As appropriate, 
the Secretary shall offer to share technical expertise 
developed under the program under paragraph (1), 
through consultation and assistance, with owners, 
operators, or users of systems for the generation, 
transmission, or distribution of electric energy lo-
cated in the United States and with State commis-
sions. In offering such support, the Secretary shall 
assign higher priority to systems serving facilities 
designated by the President pursuant to subsection 
(d)(1) and other critical-infrastructure facilities, 
which the Secretary shall identify in consultation 
with the Commission and other appropriate Federal 
agencies. 
‘‘(3) SECURITY CLEARANCES AND COMMUNICA-
TION.—The Secretary shall facilitate and, to the ex-
tent practicable, expedite the acquisition of adequate 
security clearances by key personnel of any entity 
subject to the requirements of this section to enable 
optimum communication with Federal agencies re-
garding 
grid 
security 
threats, 
grid 
security 
vulnerabilities, and defense critical electric infra-
structure vulnerabilities. The Secretary, the Com-
mission, and other appropriate Federal agencies 
shall, to the extent practicable and consistent with 
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their obligations to protect classified and protected 
information, share timely actionable information re-
garding 
grid 
security 
threats, 
grid 
security 
vulnerabilities, and defense critical electric infra-
structure vulnerabilities with appropriate key per-
sonnel of owners, operators, and users of the bulk- 
power system and of defense critical electric infra-
structure.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) JURISDICTION.—Section 201(b)(2) of the 
Federal Power Act (16 U.S.C. 824(b)(2)) is amend-
ed by inserting ‘‘215A,’’ after ‘‘215,’’ each place it 
appears. 
(2) PUBLIC
UTILITY.—Section 201(e) of the 
Federal Power Act (16 U.S.C. 824(e)) is amended 
by inserting ‘‘215A,’’ after ‘‘215,’’. 
SEC. 4. BUDGETARY COMPLIANCE. 
The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go Act of 2010, 
shall be determined by reference to the latest statement 
titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 
Act, submitted for printing in the Congressional Record 
by the Chairman of the House Budget Committee, pro-
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