in the United States, and the sanctioned party shall have
the right to seek modification or rescission of such discipli-
nary action by the Commission. If the organization finds
it necessary to prevent a serious threat to reliability, the
organization may seek injunctive relief in a Federal court
in the district in which the affected facilities are located.
‘‘(2) A disciplinary action taken under paragraph (1)
may take effect not earlier than the 30th day after the
Electric Reliability Organization files with the Commission
its written finding and record of proceedings before the
Electric Reliability Organization and the Commission
posts its written finding, unless the Commission, on its
own motion or upon application by the user of the bulk-
power system which is the subject of the action, suspends
the action. The action shall remain in effect or remain
suspended unless and until the Commission, after notice
and opportunity for hearing, affirms, sets aside, modifies,
or reinstates the action, but the Commission shall conduct
such hearing under procedures established to ensure expe-
dited consideration of the action taken.
‘‘(3) The Commission, on its own motion or on com-
plaint, may order compliance with an organization stand-
ard and may impose a penalty, limitation of activities,
functions, or operations, or take such other disciplinary
action as the Commission finds appropriate, against a user
of the bulk-power system with respect to actions affecting
or threatening to affect bulk-power system facilities lo-
cated in the United States if the Commission finds, after
notice and opportunity for a hearing, that the user of the
bulk-power system has violated or threatens to violate an
organization standard.
‘‘(4) The Commission may take such action as is nec-
essary against the Electric Reliability Organization or an
affiliated regional reliability entity to assure compliance
with an organization standard, or any Commission order
affecting the Electric Reliability Organization or an affili-
ated regional reliability entity.
‘‘(k) RELIABILITY REPORTS.—The Electric Reli-
ability Organization shall conduct periodic assessments of
the reliability and adequacy of the interconnected bulk-
power system in North America and shall report annually
to the Secretary of Energy and the Commission its find-
ings and recommendations for monitoring or improving
system reliability and adequacy.
‘‘(l) ASSESSMENT
AND
RECOVERY
OF
CERTAIN
COSTS.—The reasonable costs of the Electric Reliability
Organization, and the reasonable costs of each affiliated
regional reliability entity that are related to implementa-
tion and enforcement of organization standards or other
requirements contained in a delegation agreement ap-
proved under subsection (h), shall be assessed by the Elec-
tric Reliability Organization and each affiliated regional
reliability entity, respectively, taking into account the rela-
tionship of costs to each region and based on an allocation
that reflects an equitable sharing of the costs among all
end users. The Commission shall provide by rule for the
review of such costs and allocations, pursuant to the
standards in this subsection and subsection (d)(4)(F).
‘‘(m) SAVINGS PROVISIONS.—(1) The Electric Reli-
ability Organization shall have authority to develop, imple-
ment and enforce compliance with standards for the reli-
able operation of only the Bulk Power System.
‘‘(2) This section does not provide the Electric Reli-
ability Organization or the Commission with the authority
to set and enforce compliance with standards for adequacy
or safety of electric facilities or services.
‘‘(3) Nothing in this section shall be construed to pre-
empt any authority of any State to take action to ensure
the safety, adequacy, and reliability of electric service
within that State, as long as such action is not incon-
sistent with any Organization Standard.
‘‘(4) Within 90 days of the application of the Electric
Reliability Organization or other affected party, the Com-
mission shall issue a final order determining whether a
state action is inconsistent with an Organization Stand-
ard, after notice and opportunity for comment, taking into
consideration any recommendations of the Electric Reli-
ability Organization.
‘‘(5) The Commission, after consultation with the
Electric Reliability Organization, may stay the effective-
ness of any state action, pending the Commission’s
issuance of a final order.
‘‘(n) REGIONAL ADVISORY BODIES.—The Commis-
sion shall establish a regional advisory body on the petition
of at least two-thirds of the States within a region that
have more than one-half of their electric loan served within
the region. A regional advisory body shall be composed of
one member from each participating State in the region,
appointed by the Governor of each State, and may include
representatives of agencies, States, and provinces outside
the United States, upon execution of an international
agreement or agreements described in subsection (f). A
regional advisory body may provide advice to the electric
reliability organization, an affiliated regional reliability en-
tity, or the Commission regarding the governance of an
existing or proposed affiliated regional reliability entity
within the same region, whether an organization standard,
entity rule, or variance proposed to apply within the region
is just, reasonable, not unduly discriminatory or pref-
erential, and in the public interest, and whether fees pro-
posed to be assessed within the region are just, reasonable,
not unduly discriminatory or preferential, in the public in-
terest, and consistent with the requirements of subsection
(l). The Commission may give deference to the advice of
any such regional advisory body if that body is organized
on an interconnection-wide basis.
‘‘(o) COORDINATION WITH REGIONAL TRANSMISSION
ORGANIZATIONS.—(1) Each regional transmission organi-
zation authorized by the Commission shall be responsible
for maintaining the short-term reliability of the bulk-
power system that it operates, consistent with organiza-
tion standards.
‘‘(2) Except as provided in paragraph (5), in connec-
tion with a proceeding under subsection (e) to consider
a proposed organization standard, each regional trans-
mission organization authorized by the Commission shall
report to the Commission, and notify the electric reliability
organization and any applicable affiliated regional reli-
ability entity, regarding whether the proposed organiza-
tion standard hinders or conflicts with that regional trans-
mission organization’s ability to fulfill the requirements of
any Commission-accepted, approved, or ordered rule, regu-
lation, order, tariff, rate schedule, or agreement. Where
such hindrance or conflict is identified, the Commission
shall address such hindrance or conflict, and the need for
any changes to such Commission-accepted, approved, or
ordered rule, order, tariff, rate schedule, or agreement in
its order under subsection (e) regarding the proposed
standard. Where such hindrance or conflict is identified
between a proposed organization standard and a provision
of any rule, order, tariff, rate schedule or agreement ac-
cepted, approved or ordered by the Commission applicable
to a regional transmission organization, nothing in this
section shall require a change in the regional transmission
organization’s obligation to comply with such provision un-
less the Commission orders such a change and the change
becomes effective. If the Commission finds that the tariff,
rate schedule, or agreement needs to be changed, the re-
gional transmission organization must expeditiously make
a section 205 filing to reflect the change. If the Commis-
sion finds that the proposed organization standard needs
to be changed, it shall remand the proposed organization
standard to the electric reliability organization under sub-
section (e)(3)(B).
‘‘(3) Except as provided in paragraph (5), to the ex-
tent hindrances and conflicts arise after approval of a reli-
ability standard under subsection (c) or organization
standard under subsection (e), each regional transmission
organization authorized by the Commission shall report to
the Commission, and notify the electric reliability organi-
zation and any applicable affiliated regional reliability en-
tity, regarding any reliability standard approved under
subsection (c) or organization standard that hinders or
conflicts with that regional transmission organization’s
ability to fulfill the requirements of any Commission-ac-
cepted, approved, or ordered rule, regulation, order, tariff,
rate schedule, or agreement. The Commission shall seek
to assure that such hindrances or conflicts are resolved
promptly. Where a hindrance or conflict is identified be-
tween a reliability standard or an organization standard
and a provision of any rule, order, tariff, rate schedule
or agreement accepted, approved or ordered by the Com-
mission applicable to a regional transmission organization,
nothing in this section shall require a change in the re-
gional transmission organization’s obligation to comply
with such provision unless the Commission orders such a
change and the change becomes effective. If the Commis-
sion finds that the tariff, rate schedule or agreement needs
to be changed, the regional transmission organization
must expeditiously make a section 205 filing to reflect the
change. If the Commission finds that an organization
standard needs to be changed, it shall order the electric
reliability organization to develop and submit a modified
organization standard under subsection (e)(3)(C).
‘‘(4) An affiliated regional reliability entity and a re-
gional transmission organization operating in the same ge-
ographic area shall cooperate to avoid conflicts between
implementation and enforcement of organization stand-
ards by the affiliated regional reliability entity and imple-
mentation and enforcement of Commission-accepted tar-
iffs, rate schedules, and agreements by the regional trans-
mission organization. In areas without an affiliated re-
gional reliability entity, the electric reliability organization
shall act as the affiliated regional reliability entity for pur-
poses of this paragraph.
‘‘(5) Until 6 months after approval of applicable sub-
section (h)(3) procedures, any reliability standard, guid-
ance, or practice contained in Commission-accepted tar-
iffs, rate schedules, or agreements in effect of any Com-
mission-authorized independent system operator or re-
gional transmission organization shall continue to apply
unless the Commission accepts an amendment thereto by
the applicable operator or organization, or upon complaint
finds them to be unjust, unreasonable, unduly discrimina-
tory or preferential, or not in the public interest. At the
conclusion of such transition period, any such reliability
standard, guidance, practice, or amendment thereto that
the Commission determines is inconsistent with organiza-
tion standards shall no longer apply.’’.
(2) ENFORCEMENT.—Sections 316 and 316A of
the Federal Power Act are each amended by striking
‘‘or 214’’ each place it appears and inserting ‘‘214,
or 215’’.
(b) APPLICATION OF ANTITRUST LAWS.—Notwith-
standing any other provision of law, each of the following
activities are rebuttably presumed to be in compliance with
the antitrust laws of the United States:
(1) Activities undertaken by the Electric Reli-
ability Organization under section 215 of the Fed-
eral Power Act or affiliated regional reliability entity
operating under an agreement in effect under sec-
tion 215(h) of such Act.
(2) Activities of a member of the Electric Reli-
ability Organization or affiliated regional reliability
entity in pursuit of organization objectives under
section 215 of the Federal Power Act undertaken in
good faith under the rules of the organization.
Primary jurisdiction, and immunities and other affirma-
tive defenses, shall be available to the extent otherwise ap-
plicable.
Æ