CBO Scores Grid Reliability and Infrastructure Defense Act

The Congressional Budget Office has completed a cost estimate for the Grid Reliability and Infrastructure Defense Act (HR 5026), a bill that would amend existing law regarding the regulation of electric power transmission facilities.

Under current law, most of the standards governing the reliability of the bulk-power system are issued by the Electric Reliability Organization (ERO), subject to approval and enforcement by the Federal Energy Regulatory Commission (FERC). This bill would set deadlines for FERC to issue standards regarding the security of computer networks used in electric power transmission (known as cybersecurity) and other risks to the electric power transmission grid, subject to certain conditions. In addition, both FERC and ERO would be directed to ensure that utilities maintain adequate supplies of large electrical transformers and implement measures to protect their systems against geomagnetic storms (incidents involving solar radiation). Other provisions would authorize a new technical assistance program related to grid security and establish terms and procedures for responding to emergencies, protecting information, and identifying strategically important electric facilities.

CBO estimates that implementing this bill would increase net direct spending by about $5 million over the 2011-2015 period and $40 million over the 2011-2020 period. Implementing the bill would increase discretionary spending by $219 million over the 2011-2015 period. CBO estimates that enacting this bill would not affect revenues.