RD15-4 Letter Order (approving CIP-014-2)

FEDERAL ENERGY REGULATORY COMMISSION

WASHINGTON, D.C. 20426

OFFICE OF ELECTRIC RELIABILITY

North American Electric Reliability Corporation

Docket No. RD15-4-000

Tuesday, July 14, 2015

North American Electric Reliability Corporation

1325 G Street N.W., Suite 600

Washington, D.C. 20005

Attention: Gizelle Wray

Associate Counsel for North American Electric Reliability Corporation

Reference: Petition of the North American Electric Reliability Corporation for Approval of Proposed Reliability Standard CIP-014-2 (Physical Security)

Dear Ms. Wray:

On May 15, 2015, the North American Electric Reliability Corporation (NERC) filed a petition seeking approval of proposed Reliability Standard CIP-014-2 (Physical Security), which modifies Reliability Standard CIP-014-1 by removing the term “widespread” from Requirement R1, the associated implementation plan, the violation risk factors, and violation severity levels, and the retirement of Reliability Standard CIP-014-1.

The petition maintains that the proposed Reliability Standard complies with the Commission’s directive in Order No. 802 concerning Requirement R1 of Reliability Standard CIP-014-1.¹ In Order No. 802, the Commission approved Reliability Standard CIP-014-1. However, the Commission determined that the term “widespread” in Requirement R1 was unclear with respect to the obligations it imposed on applicable entities; how it would be implemented by applicable entities; and how it would be enforced.² Accordingly, the Commission directed NERC, pursuant to section 215(d)(5) of the Federal Power Act,³ to remove the term “widespread” from Reliability Standard CIP-014-1 or, alternatively, to propose modifications to the Reliability Standard that address the Commission’s concerns.⁴

NERC’s filing was noticed on May 18, 2015, with interventions, comments and protests due on or before June 15, 2015. Dominion Resources Services, Inc. filed a timely motion to intervene raising no issues.

NERC’s uncontested filing is hereby approved pursuant to the relevant authority delegated to the Director, Office of Electric Reliability under 18 C.F.R. § 375.303 (2014), effective as of the date of this Order.⁵

This action shall not be construed as approving any other application, including proposed revisions of Electric Reliability Organization or Regional Entity rules or procedures pursuant to 18 C.F.R. § 375.303(a)(2)(i). Such action shall not be deemed as recognition of any claimed right or obligation associated therewith and such action is without prejudice to any findings or orders that have been or may hereafter be made by the Commission in any proceeding now pending or hereafter instituted by or against the Electric Reliability Organization or any Regional Entity.

This order constitutes final agency action. Requests for rehearing by the Commission may be filed within 30 days of the date of issuance of this order, pursuant to 18 C.F.R. § 385.713 (2014).

Sincerely,

Michael Bardee, Director

Office of Electric Reliability

1 Physical Security Reliability Standard, Order No. 802, 149 FERC ¶ 61,140 (2014).

2 Order No. 802, 149 FERC ¶ 61,140 at P 19.

3 16 U.S.C. § 824o(d)(5) (2012).

4 Order No. 802, 149 FERC ¶ 61,140 at P 19.

5 The reporting and recordkeeping requirements and estimated burden related to Reliability Standard CIP-014-1 were approved by the Office of Management and Budget (OMB) under FERC-725U (OMB Control No. 1902-0274). Reliability Standard CIP-014-2 does not affect those burden estimates, so this material will be provided to OMB for information only.