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.