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CRS   INSIGHT


Electric Grid Physical Security: Recent Legislation

January 6, 2016 (IN10425)




Related   Author


   *  Paul W. Parfomak



Paul W. Parfomak, Specialist in Energy and Infrastructure Policy (ppa rfmak4Lcrs bcgv, 7-0030)

Introduction

The U.S. electric grid consists of over 200,000 miles of high voltage transmission lines and hundreds of high voltage
(HV)  transformer substations. Due to their size and location these critical assets-especially the transformers-are
vulnerable to physical damage from theft, vandalism, or terrorist attack. The Fixing America's Surface Transportation
(FAST)  Act (P L 114-94), which became law on December 4, 2015, contains provisions to facilitate recovery during
electric grid emergencies due to physical damage and other causes. A Senate bill (S-2012) could also expand efforts to
protect the grid from physical threats.

The vulnerability of the electric grid to natural events or malicious acts has been a long-standing policy concern. A
particular focus has been on HV transformers. Such transformers are very difficult to restore when damaged because
they can take over a year to manufacture and are hard to move. Over the years, the utility industry and government
agencies have engaged in ever greater efforts to secure HV transformers and other grid assets from physical attack and
to improve grid recovery should an attack succeed. These efforts include coordination and information sharing,
voluntary spare equipment programs, industry security standards, and large-scale security exercises. (For further
discussion, see CRS Report R43604, Physical ecurity of the US. Power Grid: Hi h-Voltage Transformer ubstations,
by Paul W. Parfomak.)

In November 2014, the Federal Energy Regulatory Commission (FERC) approved a new mandatory Physical Security
Reliability Standard (CIP-014-1) for industry to address physical security risks and vulnerabilities related to the
reliable operation of the power grid by performing risk assessments to identify their critical facilities, evaluate
potential threats and vulnerabilities, and implement security plans to protect against attacks. While viewed by many as
an important step in improving grid security, some in Congress have advocated additional measures to facilitate grid
recovery in an emergency. The Department of Energy's (DOE) 2015 QuadrennialLner   Review also recommended a
DOE-led  effort to develop a critical HV transformer reserve as a source of emergency spares in the event of natural
disaster or physical attack.

FAST  Act Grid Security Provisions

The FAST  Act contains two sections explicitly expanding federal efforts to prevent or recover from a physical attack or
another emergency on the U.S. electric grid. (Similar language was in the North American Energy Security and
Infrastructure Act of 2015 (-HL8.) which previously passed in the House.)

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