I
107TH CONGRESS
1ST SESSION
H. R. 312
To amend the Federal Power Act to provide for the reliability of the electric
power transmission system in the United States, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 30, 2001
Mr. WYNN (for himself, Mr. SHADEGG, Ms. ESHOO, and Mr. EHRLICH) intro-
duced the following bill; which was referred to the Committee on Energy
and Commerce
A BILL
To amend the Federal Power Act to provide for the reliability
of the electric power transmission system in the United
States, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘National Electricity
Reliability Act’’.
SEC. 2. ELECTRIC ENERGY TRANSMISSION RELIABILITY.
(a) ELECTRIC
RELIABILITY
ORGANIZATION
AND
OVERSIGHT.—
(1) IN GENERAL.—The Federal Power Act is
amended by adding the following new section after
section 214:
‘‘SEC. 215. ELECTRIC RELIABILITY ORGANIZATION AND
OVERSIGHT.
‘‘(a) DEFINITIONS.—As used in this section:
‘‘(1) AFFILIATED REGIONAL RELIABILITY ENTI-
TY.—The term ‘affiliated regional reliability entity’
means an entity delegated authority under the provi-
sions of subsection (h).
‘‘(2) BULK-POWER SYSTEM.—The term ‘bulk-
power system’ means all facilities and control sys-
tems necessary for operating an interconnected
transmission grid (or any portion thereof), including
high-voltage transmission lines; substations; control
centers; communications; data, and operations plan-
ning facilities; and the output of generating units
necessary to maintain transmission system reli-
ability.
‘‘(3) ELECTRIC RELIABILITY ORGANIZATION, OR
ORGANIZATION.—The term ‘Electric Reliability Or-
ganization’ or ‘Organization’ means the organization
approved by the Commission under subsection
(d)(4).
‘‘(4) ENTITY
RULE.—The term ‘entity rule’
means a rule adopted by an affiliated regional reli-
ability entity for a specific region and designed to
implement or enforce one or more Organization
Standards. An entity rule shall be approved by the
organization and once approved, shall be treated as
an Organization Standard.
‘‘(5) INDUSTRY SECTOR.—The term ‘industry
sector’ means a group of users of the bulk power
system with substantially similar commercial inter-
ests, as determined by the Board of the Electric Re-
liability Organization.
‘‘(6) INTERCONNECTION.—The term ‘inter-
connection’ means a geographic area in which the
operation of bulk-power system components is syn-
chronized such that the failure of one or more of
such components may adversely affect the ability of
the operators of other components within the inter-
connection to maintain safe and reliable operation of
the facilities within their control.
‘‘(7) ORGANIZATION
STANDARD.—The term
‘Organization Standard’ means a policy or standard
duly adopted by the Electric Reliability Organization
to provide for the reliable operation of a bulk-power
system.
‘‘(8) PUBLIC
INTEREST
GROUP.—The term
‘public interest group’ means any nonprofit private
or public organization that has an interest in the ac-
tivities of the Electric Reliability Organization, in-
cluding, but not limited to, ratepayer advocates, en-
vironmental groups, and State and local government
organizations that regulate market participants and
promulgate government policy.
‘‘(9) VARIANCE.—The term ‘variance’ means an
exception or variance from the requirements of an
Organization Standard (including a proposal for an
Organization Standard where there is no Organiza-
tion Standard) that is adopted by an affiliated re-
gional reliability entity and applicable to all or a
part of the region for which the affiliated regional
reliability entity is responsible. A variance shall be
approved by the organization and once approved,
shall be treated as an Organization Standard.
‘‘(10) SYSTEM OPERATOR.—The term ‘system
operator’ means any entity that operates or is re-
sponsible for the operation of a bulk-power system,
including but not limited to a control area operator,
an independent system operator, a regional trans-
mission organization, a transmission company, a
transmission system operator, or a regional security
coordinator.
‘‘(11) USER OF THE BULK-POWER SYSTEM.—
The term ‘user of the bulk-power system’ means any
entity that sells, purchases, or transmits electric
power over a bulk-power system, or that owns, oper-
ates, or maintains facilities or control systems that
are part of a bulk-power system, or that is a system
operator.
‘‘(b) COMMISSION
AUTHORITY.—(1) Within the
United States, the Commission shall have jurisdiction over
the Electric Reliability Organization, all affiliated regional
reliability entities, all system operators, and all users of
the bulk-power system, for purposes of approving and en-
forcing compliance with the requirements of this section.
‘‘(2) The Commission may, by rule, define any other
term used in this section, provided such definition is con-
sistent with the definitions in, and the purpose and intent
of, this Act.
‘‘(3) Not later than 90 days after the date of enact-
ment of this section, the Commission shall issue a pro-
posed rule for implementing the requirements of this sec-
tion. The Commission shall provide notice and opportunity
for comment on the proposed rule. The Commission shall
issue a final rule under this subsection within 180 days
after the date of enactment of this section.
‘‘(4) Nothing in this section shall be construed as lim-
iting or impairing any authority of the Commission under
any other provision of this Act, including its exclusive au-
thority to determine rates, terms, and conditions of trans-
mission services subject to its jurisdiction.
‘‘(c) EXISTING
RELIABILITY
STANDARDS.—Fol-
lowing enactment of this section, and prior to the approval
of an organization under subsection (d), any entity, in-
cluding the North American Electric Reliability Council
and its member regional reliability councils, may file any
reliability standard, guidance, or practice that such entity
would propose to be made mandatory and enforceable. The
Commission, after allowing an opportunity to submit com-
ments, may approve any such proposed mandatory stand-
ard, guidance, or practice, or any amendment thereto, if
it finds that the standard, guidance, or practice, or
amendment is just, reasonable, not unduly discriminatory
or preferential, and in the public interest. The Commission
may, without further proceeding or finding, grant its ap-
proval to any standard, guidance, or practice for which
no substantive objections are filed in the comment period.
Filed standards, guidances, or practices, including any
amendments thereto, shall be mandatory and applicable
‘‘(A) has the ability to develop, implement, and
enforce standards that provide for an adequate level
of reliability of the bulk-power system;
‘‘(B) permits voluntary membership to any user
of the bulk-power system or public interest group;
‘‘(C) assures fair representation of its members
in the selection of its directors and fair management
of its affairs, taking into account the need for effi-
ciency and effectiveness in decisionmaking and oper-
ations and the requirements for technical com-
petency in the development of Organization Stand-
ards and the exercise of oversight of bulk-power sys-
tem reliability;
‘‘(D) assures that no two industry sectors have
the ability to control, and no one industry sector has
the ability to veto, the Electric Reliability Organiza-
tion’s discharge of its responsibilities (including ac-
tions by committees recommending standards to the
board or other board actions to implement and en-
force standards);
‘‘(E) provides for governance by a board wholly
comprised of independent directors;
‘‘(F) provides a funding mechanism and re-
quirements that are just, reasonable, and not unduly
discriminatory or preferential and are in the public