S. 1031Senate109th Congress (2005-2007)In Committee

Electric Reliability Act of 2005

Introduced May 12, 2005

Legislative Activity

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on Energy and Natural Resources.

May 12, 2005

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SenateIntro Referral

Introduced in Senate

May 12, 2005

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S5168)

May 12, 2005

SenateIntro Referral

Read twice and referred to the Committee on Energy and Natural Resources.

May 12, 2005

Floor Debate

20 members

What members said about S. 1031 on the floor

9 Republicans10 Democrats1 Independent
Edward M. Kennedy
Sen. Edward M. KennedyD-MA · May 12, 2005

Mr. President, it is time for a new effort in Congress to enact the Patients' Bill of Rights. The Senate has approved major bipartisan legislation to end the abuses of managed care and HMOs before,…

Dianne Feinstein
Sen. Dianne FeinsteinD-CA · May 12, 2005

Mr. President, I rise today to introduce the Homeland Security FORWARD Funding Act of 2005. I am pleased to be joined by my colleague from Texas, Senator John Cornyn, as well as Senators Lautenberg,…

Jack Reed
Sen. Jack ReedD-RI · May 12, 2005

Mr. President, today I introduce two bills to expand access to college. I am pleased to be joined in this effort by Senators Collins, Kennedy, and Murray. We are slated to reauthorize the Higher…

Paul S. Sarbanes
Sen. Paul S. SarbanesD-MD · May 12, 2005

Mr. President, I am pleased to introduce the Federal Employee Commuter Benefits Act of 2005, which is cosponsored by my colleagues Senators Mikulski and Warner. This bill will guarantee transit…

Norm Coleman
Sen. Norm ColemanR-MN · May 12, 2005

Mr. President, today I am introducing legislation to help the United States compete in an increasingly global economy in order to keep and to grow good paying, high quality jobs here at home. I am…

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John McCain
Sen. John McCainR-AZ · May 12, 2005

Mr. President, after more than 5 months of work, I am pleased to be joined by Senators Kennedy, Brownback, Lieberman, Graham, and Salazar in introducing the Secure America and Orderly Immigration…

Olympia J. Snowe
Sen. Olympia J. SnoweR-ME · May 12, 2005

Mr. President, I rise today to offer the Supporting Our Patriotic Businesses Act. This bill addresses some key concerns I have regarding the impact that military call-ups have on our Nation's small…

James M. Jeffords
Sen. James M. JeffordsI-VT · May 12, 2005

Mr. President, I have long been a proponent of measures that support historic preservation and economic development, and it is in keeping with that tradition that I rise today to introduce the…

John Cornyn
Sen. John CornynR-TX · May 12, 2005

Mr. President, I rise today to join with my colleague, Senator Dianne Feinstein of California and other of our distinguished colleagues in introducing The Homeland Security FORWARD Funding Act of…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · May 12, 2005

Mr. President, I rise today to introduce the Welcome Home G.I. Bill. Similar to the GI Bill for soldiers returning from World War II, this Welcome Home G.I Bill establishes a program of benefits…

Maria Cantwell
Sen. Maria CantwellD-WA · May 12, 2005

Mr. President, I rise today to reintroduce the Electric Reliability Act of 2005, which I am pleased to introduce with my colleagues, Senator Clinton and Senator Jeffords. This legislation would give…

Maria Cantwell
Sen. Maria CantwellD-WA · May 12, 2005

Mr. President, I rise today to reintroduce the Electric Reliability Act of 2005, which I am pleased to introduce with my colleagues, Senator Clinton and Senator Jeffords. This legislation would give…

Lincoln Chafee
Sen. Lincoln ChafeeR-RI · May 12, 2005

Mr. President, I rise today to introduce legislation reauthorizing appropriations for the Water Resources Research Act. The Chairman and Ranking Member of the Senate Committee on Environment and…

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Hillary Rodham Clinton
Sen. Hillary Rodham ClintonD-NY · May 12, 2005

Mr. President, today I am introducing the Military Personnel Financial Services Education Act of 2005. Senator Collins, my colleague on the Armed Services Committee, has agreed to cosponsor this…

Gordon H. Smith
Sen. Gordon H. SmithR-OR · May 12, 2005

Mr. President, water and energy are precious resources that we must manage as efficiently as possible. That is why I am joining with my colleagues Senator Lincoln and Finance Chairman Grassley to…

Michael B. Enzi
Sen. Michael B. EnziR-WY · May 12, 2005

Mr. President I rise today to introduce the Workforce Investment Act Amendments of 2005. I am pleased to be joined in this important effort by Senator Kennedy, the Ranking Member of the Health,…

Susan M. Collins
Sen. Susan M. CollinsR-ME · May 12, 2005

Mr. President, I am pleased to join with Senator Clinton on legislation that will address the persistent problems that we have experienced with the sale of inappropriate life insurance and investment…

Mary L. Landrieu
Sen. Mary L. LandrieuD-LA · May 12, 2005

Mr. President, today I rise to introduce legislation, The Stewardship for our Coasts and Opportunities for Reliable Energy Act--SCORE Act--which will ensure that offshore energy development on the…

Jim DeMint
Sen. Jim DeMintR-SC · May 12, 2005

Mr. President, I rise today to introduce The Health Care Choice Act of 2005, a bill that would help Americans afford health insurance. Approximately 45 million Americans lack health insurance. These…

Barbara Boxer
Sen. Barbara BoxerD-CA · May 12, 2005

Mr. President, at the end of 2002, the Maritime Transportation Security Act became law. I was a member of the conference committee on that bill, and I think it was a good first step in improving…

Christopher J. Dodd
Sen. Christopher J. DoddD-CT · May 12, 2005

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

Latest available legislative text

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Introduced in SenateIssued May 12, 2005
        [Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1031 Introduced in Senate (IS)]

1st Session
S. 1031

To enhance the reliability of the electric system.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

May 12, 2005

Ms. Cantwell (for herself, Mr. Jeffords, and Mrs. Clinton) introduced
the following bill; which was read twice and referred to the Committee
on Energy and Natural Resources

_______________________________________________________________________

A BILL

To enhance the reliability of the electric system.

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

SECTION 1. SHORT TITLE.

This title may be cited as the ``Electric Reliability Act of
2005''.

SEC. 2. ELECTRIC RELIABILITY STANDARDS.

(a) In General.--Part II of the Federal Power Act (16 U.S.C 824 et
seq.) is amended by adding at the end the following:

``SEC. 215. ELECTRIC RELIABILITY.

``(a) Definitions.--In this section:
``(1)(A) The term `bulk-power system' means--
``(i) facilities and control systems necessary for
operating an interconnected electric energy
transmission network (or any portion thereof); and
``(ii) electric energy from generation facilities
needed to maintain transmission system reliability.
``(B) The term `bulk-power system' does not include
facilities used in the local distribution of electric energy.
``(2) The terms `Electric Reliability Organization' and
`ERO' mean the organization certified by the Commission under
subsection (c) the purpose of which is to establish and enforce
reliability standards for the bulk-power system, subject to
Commission review.
``(3) The term `interconnection' means a geographic area in
which the operation of bulk-power system components is
synchronized such that the failure of 1 or more of such
components may adversely affect the ability of the operators of
other components within the system to maintain reliable
operation of the facilities within their control.
``(4) The term `regional entity' means an entity having
enforcement authority pursuant to subsection (e)(4).
``(5)(A) The term `reliability standard' means a
requirement, approved by the Commission under this section, to
provide for reliable operation of the bulk-power system.
``(B) The term `reliability standard' includes requirements
for the operation of existing bulk-power system facilities and
the design of planned additions or modifications to those
facilities to the extent necessary to provide for reliable
operation of the bulk-power system.
``(C) The term `reliability standard' does not include any
requirement to enlarge a facility described in subparagraph (B)
or to construct new transmission capacity or generation
capacity.
``(6) The term `reliable operation' means operating the
elements of the bulk-power system within equipment and electric
system thermal, voltage, and stability limits so that
instability, uncontrolled separation, or cascading failures of
such system will not occur as a result of a sudden disturbance
or unanticipated failure of system elements.
``(7) The term `transmission organization' means a regional
transmission organization, independent system operator,
independent transmission provider, or other transmission
organization finally approved by the Commission for the
operation of transmission facilities.
``(b) Jurisdiction and Applicability.--(1)(A) The Commission shall
have jurisdiction, within the United States, over the ERO certified by
the Commission under subsection (c), any regional entities, and all
users, owners and operators of the bulk-power system, including the
entities described in section 201(f), for purposes of approving
reliability standards established under this section and enforcing
compliance with this section.
``(B) All users, owners, and operators of the bulk-power system
shall comply with reliability standards that take effect under this
section.
``(2) Not later than 180 days after the date of enactment of this
section, the Commission shall issue a final rule to implement this
section.
``(c) Certification.--(1) Following the issuance of a Commission
rule under subsection (b)(2), any person may submit an application to
the Commission for certification as the Electric Reliability
Organization.
``(2) The Commission may certify an ERO described in paragraph (1)
if the Commission determines that the ERO--
``(A) has the ability to develop and enforce, subject to
subsection (e)(2), reliability standards that provide for an
adequate level of reliability of the bulk-power system; and
``(B) has established rules that--
``(i) ensure the independence of the ERO from the
users and owners and operators of the bulk-power
system, while ensuring fair stakeholder representation
in the selection of directors of the ERO and balanced
decisionmaking in any ERO committee or subordinate
organizational structure;
``(ii) allocate equitably reasonable dues, fees,
and other charges among end users for all activities
under this section;
``(iii) provide fair and impartial procedures for
enforcement of reliability standards through the
imposition of penalties in accordance with subsection
(e) (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 reliability
standards and otherwise exercising the duties of the
ERO; and
``(v) provide for taking, after certification,
appropriate steps to gain recognition in Canada and
Mexico.
``(d) Reliability Standards.--(1) The Electric Reliability
Organization shall file each reliability standard or modification to a
reliability standard that the Electric Reliability Organization
proposes to be made effective under this section with the Commission.
``(2)(A) The Commission may approve, by rule or order, a proposed
reliability standard or modification to a reliability standard if the
Commission determines that the standard is just, reasonable, not unduly
discriminatory or preferential, and in the public interest.
``(B) The Commission--
``(i) shall give due weight to the technical expertise of
the Electric Reliability Organization with respect to the
content of a proposed standard or modification to a reliability
standard and to the technical expertise of a regional entity
organized on an interconnection-wide basis with respect to a
reliability standard to be applicable within that
interconnection; but
``(ii) shall not defer with respect to the effect of a
standard on competition.
``(C) A proposed standard or modification shall take effect upon
approval by the Commission.
``(3) The Electric Reliability Organization shall rebuttably
presume that a proposal from a regional entity organized on an
interconnection-wide basis for a reliability standard or modification
to a reliability standard to be applicable on an interconnection-wide
basis is just, reasonable, and not unduly discriminatory or
preferential, and in the public interest.
``(4) The Commission shall remand to the Electric Reliability
Organization for further consideration a proposed reliability standard
or a modification to a reliability standard that the Commission
disapproves in whole or in part.
``(5) The Commission, upon a motion of the Commission or upon
complaint, may order the Electric Reliability Organization to submit to
the Commission a proposed reliability standard or a modification to a
reliability standard that addresses a specific matter if the Commission
considers such a new or modified reliability standard appropriate to
carry out this section.
``(6)(A) The final rule adopted under subsection (b)(2) shall
include fair processes for the identification and timely resolution of
any conflict between a reliability standard and any function, rule,
order, tariff, rate schedule, or agreement accepted, approved, or
ordered by the Commission applicable to a transmission organization.
``(B) The transmission organization shall continue to comply with
such function, rule, order, tariff, rate schedule, or agreement as is
accepted, approved, or ordered by the Commission until--
``(i) the Commission finds a conflict exists between a
reliability standard and any such provision;
``(ii) the Commission orders a change to the provision
pursuant to section 206; and
``(iii) the ordered change becomes effective under this
part.
``(C) If the Commission determines that a reliability standard
needs to be changed as a result of such a conflict, the Commission
shall order the ERO to develop and file with the Commission a modified
reliability standard under paragraph (4) or (5).
``(e) Enforcement.--(1) Subject to paragraph (2), the ERO may
impose a penalty on a user or owner or operator of the bulk-power
system for a violation of a reliability standard approved by the
Commission under subsection (d) if the ERO, after notice and an
opportunity for a hearing--
``(A) finds that the user or owner or operator has violated
a reliability standard approved by the Commission under
subsection (d); and
``(B) files notice and the record of the proceeding with
the Commission.
``(2)(A) A penalty imposed under paragraph (1) may take effect not
earlier than the 31st day after the date on which the ERO files with
the Commission notice of the penalty and the record of proceedings.
``(B) The penalty shall be subject to review by the Commission
upon--
``(i) a motion by the Commission; or
``(ii) application by the user, owner, or operator that is
the subject of the penalty filed not later than 30 days after
the date on which the notice is filed with the Commission.
``(C) Application to the Commission for review, or the initiation
of review by the Commission upon a motion of the Commission, shall not
operate as a stay of the penalty unless the Commission orders otherwise
upon a motion of the Commission or upon application by the user, owner,
or operator that is the subject of the penalty.
``(D) 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 ERO 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 ERO for further
proceedings.
``(E) The Commission shall implement expedited procedures for
hearings described in subparagraph (D).
``(3) Upon a motion of the Commission or upon complaint, the
Commission may order compliance with a reliability standard and may
impose a penalty against a user or owner or operator of the bulk-power
system if the Commission finds, after notice and opportunity for a
hearing, that the user or owner or operator of the bulk-power system
has engaged or is about to engage in any act or practice that
constitutes or will constitute a violation of a reliability standard.
``(4)(A) The Commission shall issue regulations authorizing the ERO
to enter into an agreement to delegate authority to a regional entity
for the purpose of proposing reliability standards to the ERO and
enforcing reliability standards under paragraph (1) if--
``(i) the regional entity is governed by an independent
board, a balanced stakeholder board, or a combination of an
independent and balanced stakeholder board;
``(ii) the regional entity otherwise meets the requirements
of paragraphs (1) and (2) of subsection (c); and
``(iii) the agreement promotes effective and efficient
administration of bulk-power system reliability.
``(B) The Commission may modify a delegation under this paragraph.
``(C) The ERO and the Commission shall rebuttably presume that a
proposal for delegation to a regional entity organized on an
interconnection-wide basis promotes effective and efficient
administration of bulk-power system reliability and should be approved.
``(D) The regulations issued under this paragraph may provide that
the Commission may assign the authority of the ERO to enforce
reliability standards under paragraph (1) directly to a regional entity
in accordance with this paragraph.
``(5) The Commission may take such action as the Commission
determines to be appropriate against the ERO or a regional entity to
ensure compliance with a reliability standard or any Commission order
affecting the ERO or a regional entity.
``(6) 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.
``(f) Changes in Electric Reliability Organization Rules.--(1) The
Electric Reliability Organization shall file with the Commission for
approval any proposed rule or proposed rule change, accompanied by an
explanation of the basis and purpose of the rule and proposed rule
change.
``(2) The Commission, upon a motion of the Commission or upon
complaint, may propose a change to the rules of the ERO.
``(3) 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 meets the requirements
of subsection (c).
``(g) Reliability Reports.--The ERO shall conduct periodic
assessments of the reliability and adequacy of the bulk-power system in
North America.
``(h) Coordination With Canada and Mexico.--The President is urged
to negotiate international agreements with the governments of Canada
and Mexico to provide for effective compliance with reliability
standards and the effectiveness of the ERO in the United States and
Canada or Mexico.
``(i) Savings Provisions.--(1) The ERO may develop and enforce
compliance with reliability standards for only the bulk-power system.
``(2) Nothing in this section authorizes the ERO or the Commission
to order the construction of additional generation or transmission
capacity or to set and enforce compliance with standards for adequacy
or safety of electric facilities or services.
``(3) Nothing in this section preempts 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
inconsistent with any reliability standard.
``(4) Not later than 90 days after the date of application of the
Electric 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 a
reliability standard, taking into consideration any recommendation of
the ERO.
``(5) The Commission, after consultation with the ERO and the State
taking action, may stay the effectiveness of any State action, pending
the issuance by the Commission of a final order.
``(j) Regional Advisory Bodies.--(1) The Commission shall establish
a regional advisory body on the petition of at least \2/3\ of the
States within a region that have more than \1/2\ of the electric load
of the States served within the region.
``(2) A regional advisory body--
``(A) shall be composed of 1 member from each participating
State in the region, appointed by the Governor of the State;
and
``(B) may include representatives of agencies, States, and
provinces outside the United States.
``(3) A regional advisory body may provide advice to the Electric
Reliability Organization, a regional entity, or the Commission
regarding--
``(A) the governance of an existing or proposed regional
entity within the same region;
``(B) whether a standard proposed to apply within the
region is just, reasonable, not unduly discriminatory or
preferential, and in the public interest;
``(C) whether fees proposed to be assessed within the
region are just, reasonable, not unduly discriminatory or
preferential, and in the public interest; and
``(D) any other responsibilities requested by the
Commission.
``(4) The Commission may give deference to the advice of a regional
advisory body if that body is organized on an interconnection-wide
basis.
``(k) Alaska and Hawaii.--This section does not apply to Alaska or
Hawaii.''.
(b) Status of ERO.--The Electric Reliability Organization certified
by the Federal Energy Regulatory Commission under section 215(c) of the
Federal Power Act (as added by subsection (a)) and any regional entity
delegated enforcement authority pursuant to section 215(e)(4) of that
Act (as so added) are not departments, agencies, or instrumentalities
of the United States Government.
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