Energy Product Reliability Act
Bill: H.R.6084 | Sponsor: Rep. Rush, Bobby L. (D-IL)
Policy area: Energy

Summary:
Energy Product Reliability Act
This bill directs the Federal Energy Regulatory Commission to certify an Energy Product Reliability Organization. Once certified, the organization must establish and enforce reliability standards for energy pipelines (e.g., natural gas, hydrogen, and petroleum pipelines) relating to cybersecurity, physical security, and the coordination of delivery and availability of energy products to ensure reliable electricity generation.

To require the Federal Energy Regulatory Commission to certify an 
    Energy Product Reliability Organization which shall, subject to 
  Commission review, establish and enforce energy product reliability 
                   standards, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Energy Product Reliability Act''.

SEC. 2. ENERGY PRODUCT RELIABILITY STANDARDS.

    (a) Definitions.--In this section:
            (1) Commission.--The term ``Commission'' means the Federal 
        Energy Regulatory Commission.
            (2) Cybersecurity incident.--The term ``cybersecurity 
        incident'' means a malicious act or suspicious event that 
        disrupts, or was an attempt to disrupt, the operation of 
        programmable electronic devices and communication networks, 
        including hardware, software, and data, that are essential to 
        the reliable delivery of an energy product through an energy 
        pipeline.
            (3) Energy pipeline.--The term ``energy pipeline'' means a 
        pipeline for the delivery of an energy product, including any 
        facility or control system necessary for the operation of such 
        a pipeline.
            (4) Energy product.--The term ``energy product'' includes 
        natural gas, hydrogen, petroleum, and a petroleum product.
            (5) Energy product reliability standard.--The term ``energy 
        product reliability standard'' means a requirement approved, 
        established, or modified by the Commission under this section 
        to provide for the reliable delivery of an energy product 
        through an energy pipeline.
            (6) Energy product reliability organization; epro.--The 
        terms ``Energy Product Reliability Organization'' and ``EPRO'' 
        mean the organization certified by the Commission under 
        subsection (d) to establish and enforce energy product 
        reliability standards, subject to Commission review.
    (b) Jurisdiction and Applicability.--
            (1) Jurisdiction.--The Commission shall have jurisdiction, 
        within the United States, over the Energy Product Reliability 
        Organization certified by the Commission under subsection (d) 
        and all users, owners, and operators of energy pipelines, for 
        purposes of approving energy product reliability standards 
        established under this section and enforcing compliance with 
        this section.
            (2) Applicability.--All users, owners, and operators of 
        energy pipelines shall comply with energy product reliability 
        standards that take effect under this section.
    (c) Rule.--Not later than 270 days after the date of enactment of 
this section, the Commission, in consultation with the Administrator of 
the Transportation Security Administration, the Secretary of Energy, 
the Secretary of Transportation, the Electric Reliability Organization 
(as defined in section 215 of the Federal Power Act (16 U.S.C. 824o)), 
and any other Federal agency or organization the Commission determines 
appropriate, shall issue a final rule to implement this section.
    (d) Certification.--
            (1) Application.--Following the issuance of a final rule 
        under subsection (c), any person may submit an application to 
        the Commission for certification as the Energy Product 
        Reliability Organization.
            (2) Certification.--Not later than 2 years after the date 
        of enactment of this Act, the Commission shall certify one 
        Energy Product Reliability Organization if the Commission 
        determines that such Energy Product Reliability Organization--
                    (A) has the ability to develop and enforce energy 
                product reliability standards; and
                    (B) has established rules that--
                            (i) ensure its independence from the users, 
                        owners, and operators of energy pipelines, 
                        while ensuring fair stakeholder representation 
                        in the selection of its directors and balanced 
                        decisionmaking in any Energy Product 
                        Reliability Organization committee or 
                        subordinate organizational structure;
                            (ii) equitably allocate reasonable dues, 
                        fees, and other charges among end users for all 
                        activities under this section;
                            (iii) provide fair and impartial procedures 
                        for enforcement of energy product reliability 
                        standards through the imposition of penalties 
                        in accordance with subsection (g) (including 
                        limitations on activities, functions, or 
                        operations, or other appropriate sanctions);
                            (iv) provide for reasonable notice and 
                        opportunity for public comment, due process, 
                        openness, and balance of interests in 
                        developing energy product reliability standards 
                        and otherwise exercising its duties; and
                            (v) provide for taking, after 
                        certification, appropriate steps to gain 
                        recognition in Canada and Mexico.
    (e) Energy Product Reliability Standards.--
            (1) Filing.--The Energy Product Reliability Organization 
        shall file each energy product reliability standard, or 
        modification to an energy product reliability standard, that is 
        proposed to be made effective under this section with the 
        Commission.
            (2) Approval.--The Commission may approve, by rule or 
        order, a proposed energy product reliability standard, or 
        modification to an energy product reliability standard, if it 
        determines that the energy product reliability standard is 
        just, reasonable, not unduly discriminatory or preferential, 
        and in the public interest.
            (3) Included standards.--In carrying out this section, the 
        Energy Product Reliability Organization shall, at a minimum, 
        establish energy product reliability standards relating to--
                    (A) cybersecurity, including protocols for the 
                reporting of cybersecurity incidents;
                    (B) physical security; and
                    (C) coordination of delivery and availability of 
                energy products to ensure reliable electricity 
                generation, including electricity generation that is 
                needed to maintain electric transmission system 
                reliability.
            (4) Consultation.--The Energy Product Reliability 
        Organization shall consult with the Administrator of the 
        Transportation Security Administration and the Secretary of 
        Energy in developing energy product reliability standards 
        relating to cybersecurity for energy pipelines.
            (5) Technical expertise.--The Commission shall give due 
        weight to the technical expertise of the Energy Product 
        Reliability Organization with respect to the content of a 
        proposed energy product reliability standard or modification to 
        an energy product reliability standard, but shall not defer 
        with respect to the effect of an energy product reliability 
        standard on competition.
            (6) Effect.--A proposed energy product reliability standard 
        or modification to an energy product reliability standard shall 
        take effect upon approval by the Commission.
            (7) Remand.--The Commission shall remand to the Energy 
        Product Reliability Organization for further consideration a 
        proposed energy product reliability standard or a modification 
        to an energy product reliability standard that the Commission 
        disapproves in whole or in part.
            (8) Commission order.--The Commission, upon its own motion 
        or upon complaint, may order the Energy Product Reliability 
        Organization to submit to the Commission a proposed energy 
        product reliability standard or a modification to an energy 
        product reliability standard that addresses a specific matter 
        if the Commission considers such a new or modified energy 
        product reliability standard appropriate to carry out this 
        section.
    (f) Emergency Energy Product Reliability Standards.--
            (1) In general.--The Commission may establish or modify an 
        energy product reliability standard to address continuing or 
        foreseeable emergency conditions if the Commission determines 
        that--
                    (A) the energy product reliability standards 
                approved under subsection (e) do not adequately provide 
                for the reliable delivery of energy products through 
                energy pipelines under such emergency conditions; and
                    (B) the use of the process for developing energy 
                product reliability standards pursuant to subsection 
                (e) would not result in the establishment or 
                modification of an energy product reliability standard 
                that provides for the reliable delivery of energy 
                products through energy pipelines under such conditions 
                in a timely manner.
            (2) Consultation.--Not later than 6 months after the 
        effective date of an energy product reliability standard 
        established or modified under this subsection, the Commission 
        shall consult with the Energy Product Reliability Organization, 
        the Administrator of the Transportation Security 
        Administration, and any other Federal agency the Commission 
        determines appropriate to determine whether such energy product 
        reliability standard should remain in effect or be modified.
    (g) Enforcement.--
            (1) In general.--The Energy Product Reliability 
        Organization may impose a penalty on a user, owner, or operator 
        of an energy pipeline for a violation of an energy product 
        reliability standard approved by the Commission under 
        subsection (e) if the Energy Product Reliability Organization, 
        after notice and an opportunity for a hearing--
                    (A) finds that the user, owner, or operator has 
                violated an energy product reliability standard 
                approved by the Commission under subsection (e); and
                    (B) files notice and the record of the proceeding 
                with the Commission.
            (2) Procedures.--A penalty imposed under paragraph (1) may 
        take effect not earlier than the 31st day after the Energy 
        Product Reliability Organization files with the Commission 
        notice of the penalty and the record of proceedings. Such 
        penalty shall be subject to review by the Commission, on its 
        own motion or upon application by the user, owner, or operator 
        that is the subject of the penalty filed within 30 days after 
        the date such notice is filed with the Commission. Application 
        to the Commission for review, or the initiation of review by 
        the Commission on its own motion, shall not operate as a stay 
        of such penalty unless the Commission otherwise orders upon its 
        own motion or upon application by the user, owner, or operator 
        that is the subject of such penalty. In any proceeding to 
        review a penalty imposed under paragraph (1), the Commission, 
        after notice and opportunity for hearing (which hearing may 
        consist solely of the record before the Energy Product 
        Reliability Organization and opportunity for the presentation 
        of supporting reasons to affirm, modify, or set aside the 
        penalty), shall by order affirm, set aside, reinstate, or 
        modify the penalty, and, if appropriate, remand to the Energy 
        Product Reliability Organization for further proceedings. The 
        Commission shall implement expedited procedures for such 
        hearings.
            (3) Commission enforcement.--On its own motion or upon 
        complaint, the Commission may order compliance with an energy 
        product reliability standard and may impose a penalty against a 
        user, owner, or operator of an energy pipeline if the 
        Commission finds, after notice and opportunity for a hearing, 
        that the user, owner, or operator of the energy pipeline has 
        engaged or is about to engage in any acts or practices that 
        constitute or will constitute a violation of an energy product 
        reliability standard.
            (4) Protection of information.--Any notice of enforcement 
        or record pertaining to a violation of an energy product 
        reliability standard relating to cybersecurity submitted to the 
        Commission shall be deemed to be critical electric 
        infrastructure information (as defined in section 215A of the 
        Federal Power Act (16 U.S.C. 824o-1)).
            (5) EPRO compliance.--The Commission may take such action 
        as is necessary or appropriate against the Energy Product 
        Reliability Organization to ensure compliance with an energy 
        product reliability standard or any Commission order affecting 
        the Energy Product Reliability Organization.
            (6) Considerations.--Any penalty imposed under this section 
        shall bear a reasonable relation to the seriousness of the 
        violation and shall take into consideration the efforts of the 
        user, owner, or operator to remedy the violation in a timely 
        manner.
    (h) Changes in EPRO Rules.--The Energy Product Reliability 
Organization shall, with respect to the rules of the Energy Product 
Reliability Organization, file with the Commission for approval any 
proposed rule or proposed rule change, accompanied by an explanation of 
its basis and purpose. The Commission, upon its own motion or 
complaint, may propose a change to the rules of the Energy Product 
Reliability Organization. A proposed rule or proposed rule change shall 
take effect upon a finding by the Commission, after notice and 
opportunity for comment, that the change is just, reasonable, not 
unduly discriminatory or preferential, is in the public interest, and 
satisfies the requirements of subsection (d).
    (i) Reliability Reports.--The Energy Product Reliability 
Organization shall conduct and submit to the Committee on Energy and 
Commerce of the House of Representatives and the Committee on Energy 
and Natural Resources of the Senate periodic assessments of the 
reliable delivery of energy products through energy pipelines in North 
America.
    (j) Savings Provisions.--
            (1) Construction.--This section does not authorize the 
        Energy Product Reliability Organization or the Commission to 
        order the construction of additional energy pipelines or to set 
        and enforce compliance with standards for adequacy or safety of 
        energy pipelines or services.
            (2) State authority.--
                    (A) In general.--Nothing in this section shall be 
                construed to preempt any authority of any State to take 
                action to ensure the reliable delivery of energy 
                products through energy pipelines within that State, as 
                long as such action is not inconsistent with any energy 
                product reliability standard.
                    (B) State action.--Not later than 90 days after the 
                application of the Energy Product Reliability 
                Organization or other affected party, and after notice 
                and opportunity for comment, the Commission shall issue 
                a final order determining whether a State action is 
                inconsistent with an energy product reliability 
                standard, taking into consideration any recommendation 
                of the Energy Product Reliability Organization.
                    (C) Stay of effectiveness.--The Commission, after 
                consultation with the Energy Product Reliability 
                Organization and the State taking action, may stay the 
                effectiveness of any State action, pending the 
                Commission's issuance of a final order.
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