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In the absence of new federal cybersecurity legislation,
FERC uses its available authority in an effort to increase the
resilience of the nation's critical electric infrastructure to
cyber attacks.
On September 20, the Federal Energy Regulatory Commission (FERC
or the Commission) announced the creation of a new office, the
Office of Energy Infrastructure Security (OEIS), which will focus
on physical and cyber risks to energy facilities subject to FERC
jurisdiction.1 Headed by the current director of the
Office of Electric Reliability, Joseph McClelland, OEIS will assist
the Commission in identifying security risks, communicating those
risks to other federal and state agencies and regulated utilities,
and developing solutions to mitigate those risks. Consistent with
the existing approach taken by the Obama administration in the
absence of new legislation, FERC's action draws on its existing
statutory authority in an effort to increase the cyber resilience
of critical infrastructure.
According to FERC Chairman Jon Wellinghoff, OEIS will
concentrate on the following four areas:2
Developing recommendations to mitigate security risks to
FERC-jurisdictional facilities
Advising Congress, other agencies, and utilities regarding
these risks
Participating in intelligence-related collaborative efforts to
address these risks alongside other agencies and utilities
Conducting outreach to address these threats with
private-sector owners and operators of critical infrastructure
OEIS represents the Commission's response to the increased
visibility of security risks to key infrastructure, including cyber
attacks and electromagnetic pulse events, and is intended to
provide for a more rapid and effective response to these risks by
the Commission. Chairman Wellinghoff stressed that OEIS's
activities will complement, not replace, the existing work
performed by the Office of Electric Reliability and the North
American Electric Reliability Corporation (NERC) in overseeing the
enforcement and development of Reliability Standards, including
Critical Infrastructure Protection (CIP) Reliability Standards.
The creation of OEIS reflects the growing focus at the federal
level on the need for greater cybersecurity protections for
critical infrastructure and an interest in taking any available
steps in the absence of new legislation. Despite recent efforts,
Congress was ultimately unable to reach a consensus on
cybersecurity legislation. As a result, while efforts on
comprehensive cybersecurity reform legislation are likely to
continue, the Obama administration is drafting an executive order
on cybersecurity. This policy is highlighted in the recently
approved Democratic National Platform, which states that
"going forward, the President will continue to take executive
action to strengthen and update our cyber defenses."
The executive order, which is reportedly close to completion,
will rely on existing federal authority to increase cyber
protections for key infrastructure, including the bulk electric
system, and will create a program of voluntary security standards
developed at least partly by the federal government. The executive
order is expected to create a cybersecurity council, led by the
Department of Homeland Security (DHS), to determine which federal
agencies should be responsible for the various critical
infrastructure categories and to establish the voluntary
cybersecurity standards companies will be encouraged to follow.
According to reports, DHS would identify the various owners and
operators of critical infrastructure who would be asked to follow
the voluntary standards. The executive order is likely to direct
the council to identify incentives for compliance with these
voluntary standards, including liability protections, faster
security clearances, and federal recognition that a company meets
the voluntary standards. The draft executive order may also require
the development of a process for identifying and mitigating
cybersecurity risks, although it may not identify or recommend a
specific approach.
In a recent and much anticipated decision by both natural gas producers and landowners, the Pennsylvania Supreme Court finally cleared up confusion about who owns the mineral rights to shale gas in Butler v. Powers Estate.
Natural gas producers and landowners alike breathed a sigh of relief on April 24, 2013 as the Pennsylvania Supreme Court (the "Supreme Court" or "Court") overturned a lower court decision that questioned whether subsurface ownership rights of natural gas in shale formations should be treated differently than ownership rights of natural gas in conventional formations.
The city of Lancaster, California recently adopted an ordinance requiring builders of most new homes to install functional solar power generation systems on these homes prior to their sale to the public.
As discussed previously on the blog, the IRS released Notice 2013-29 on April 15 which provided guidance on determining when construction has begun on a qualified renewable energy facility for purposes of the production tax credit.
Investment worldwide in the first quarter of 2013 was $40.6bn, down 22% on a year earlier, due to a downturn in large wind and solar project financings.
U.S. District Judge John R. Adams of the Northern District of Ohio has recently dismissed Ohio landowners’ claim that oil and gas leases not properly notarized are invalid.
Discussion With FERC Chairman Jon Wellinghoff
