Name of Slick

							Draft Agenda
Standards Committee
Thursday, June 10, 2010 | 1–4 p.m. Eastern
Dial-in Number: 866-740-1260
Participant Code: 4685998


   1. Administrative Items
      a. Introductions and Quorum — A. Mosher (Attachment 1a)
      b. NERC Antitrust Compliance Guidelines — M. Long (Attachment 1b)
      c. Meeting Agenda [Approve] — A. Mosher
      d. Waiver of 5-day rule [Approve] — A. Mosher

   2. Consent Agenda (Approve)
      a. May 13, 2010 Meeting Minutes [Approve] (Attachment 2a)
      b. Project 2008-06 — Cyber Security Order 706 [Appoint] (Attachment 2b —
         confidential)

   3. Status of High Priority Projects, Activities, and Action Items
      a. Status of High Priority Projects — D. Taylor (Attachment 3ai, 3aii, and 3aiii)
         i)      Project 2006-06 — Reliability Coordination
         ii)     Project 2007-01 — Underfrequency Load Shedding
         iii)    Project 2007-02 — Operating Personnel Communications Protocols
         iv)     Project 2007-03 — Real-time Transmission Operations
         v)      Project 2007-07 — Vegetation Management
         vi)     Project 2007-12 — Frequency Response
         vii)    Project 2007-17 — Protection System Maintenance & Testing
         viii)   Project 2008-01 — Voltage and Reactive Planning and Control
         ix)     Project 2008-06 — Cyber Security Order 706
         x)      Project 2009-01 — Disturbance and Sabotage Reporting
      b. Status of High Priority Activities and Open Action Items — A. Mosher (Attachment 3b)


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       i) Report on Meeting with FERC on Prioritization of Projects Related to Order 693
   c. Action Plan for Addressing FERC Directives and Prioritizing Standards Projects — G.
      Adamski (Attachment 3c)

4. Nominations — D. Taylor
   a. Status of Drafting Team Vacancies (Attachment 4a)

5. Standards Actions — M. Long
   a. SAR for Rapid Standard Modifications Responsive to Directives from Order 693 —
      Authorize Posting the SAR and Expediting the Development Process (Attachment 5a)
   b. Project 2010-10 FAC Order 729 — Authorize expediting the process to meet FERC
      deadline
   c. Project 2007-01 — Underfrequency Load Shedding Project — Authorize concurrent
      posting for comment and initial ballot (Attachment 5ci, 5cii)
   d. Project 2007-17 — Protection System Maintenance & Testing — Authorize concurrent
      posting for comment and initial ballot (Attachment 5d)
   e. Project 2007-07 — Vegetation Management — Direct team to make conforming
      changes; Authorize concurrent posting for comment and initial ballot (Attachment 5e)

6. Coordination
   a. Coordination with FERC and Other Regulatory Authorities — G. Adamski
      i) Update on response to March 18, 2010 FERC actions
   b. Coordination with Regional Managers — T. Gallagher

7. Other Items
   a. Update on developing “Informal Guidance” process — G. Adamski (Attachment 7ai, 7aii)
   b. How to Ensure Productive Group Discussions to Reach Consensus — FERC Workshop
      for Drafting Team Chairs and Vice Chairs — D. Taylor
   c. Duke Energy Request for Review of Interpretation — Update

8. Informational Items
   a. Status of all Standards Projects and Interpretations (Attachments 8ai and 8aii)
   b. Status of Order 693 Directives (Attachment 8b)

9. Review of New Action Items — M. Long

10. Executive Committee Actions — M. Long



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June 10, 2010
   a. Items expected to come before the Standards Committee’s Executive Committee before
      July14–15, 2010 [Pre-authorize]
       i) New Project — Revisions to BAL-003 for Order 693 and March 18, 2010 Order
          Setting Deadline for Compliance — Authorize posting the SAR and proposed
          standard
       ii) Urgent Action SAR and Revisions to CIP-005-3 to Add Requirements for Remote
           Access to Cyber Assets — Authorize posting the SAR, standard, and guidance
           document
       iii) Project 2007-04 — Certifying System Operators — Authorize concurrent posting for
            comment and initial ballot
       iv) Project 2007-09 — Generator Verification — Authorize concurrent posting for
           comment and initial ballot
       v) Project 2008-12 — Coordinate Interchange — Authorize concurrent posting for
          comment and initial ballot
       vi) Project 2010-07 — Transmission Requirements at the Generator Interface — Appoint
           a SAR Drafting Team
       vii) Urgent Action SAR from Operating Reliability Subcommittee to remove references
            to NERC tools from EOP-002-2, IRO-002-2, IRO-003-2, IRO-005-3, and IRO-006-
            4.1.

11. Adjourn




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June 10, 2010
1. Administrative Items
   a. Introductions —Standards Committee Chair Allen Mosher will lead the introduction of
      committee members and determine if there is a quorum.
   b. NERC Antitrust Compliance Guidelines — Maureen Long will review the NERC
      Antitrust Compliance Guidelines provided in Attachment 1b. It is NERC’s policy and
      practice to obey the antitrust laws and to avoid all conduct that unreasonably restrains
      competition. This policy requires the avoidance of any conduct that violates, or that
      might appear to violate, the antitrust laws. Among other things, the antitrust laws forbid
      any agreement between or among competitors regarding prices, availability of service,
      product design, terms of sale, division of markets, allocation of customers or any other
      activity that unreasonably restrains competition. It is the responsibility of every NERC
      participant and employee who may in any way affect NERC’s compliance with the
      antitrust laws to carry out this commitment.
   c. Meeting Agenda — Allen Mosher will review the meeting agenda and ask for
      modifications before the agenda is approved.
   d. Waiver of 5-day rule — If there are items submitted to the Standards Committee for
      action with less than 5 days notice, those items cannot be added to the agenda without the
      unanimous consent of the members present. If any items fall into this category Allen
      Mosher will ask the Standards Committee to vote on waiving the 5-day rule.

2. Consent Agenda
   a. Approve the Consent Agenda
      The consent agenda allows the Standards Committee to approve routine items that would
      normally not need discussion. Any Standards Committee member may ask the chair to
      remove an item from the consent agenda for formal discussion.
       The chair will ask the committee to approve or ratify the following from the consent agenda:
       a) May 13, 2010 Meeting Minutes — Approve
       b) Project 2008-06 — Cyber Security Order 706 — Appoint two additional members to
          the Standard Drafting Team to represent nuclear interests.

3. Status of High Priority Projects, Activities, and Action Items
   a. Status of High Priority Projects
      David Taylor will review the list of high priority projects.
         i)     Project 2006-06 — Reliability Coordination
         ii)    Project 2007-01 — Underfrequency Load Shedding
         iii)   Project 2007-02 — Operating Personnel Communications Protocols
         iv)    Project 2007-03 — Real-time Transmission Operations
         v)     Project 2007-07 — Vegetation Management
         vi)    Project 2007-12 — Frequency Response


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June 10, 2010
         vii) Project 2007-17 — Protection System Maintenance & Testing
         viii) Project 2008-01 — Voltage and Reactive Planning and Control
         ix) Project 2008-06 — Cyber Security Order 706
         x) Project 2009-01 — Disturbance and Sabotage Reporting
   b. Status of High Priority Activities and Open Action Items
      Allen Mosher will review the list of high priority activities selected for Standards
      Committee attention in 2010, and the status of open action items.
       i) Report on meeting with FERC on prioritization of projects related to Order 693
          Allen Mosher will report on a meeting held with FERC staff on May 26, 2010 to
          review work priorities.
   c. Action Plan for Addressing FERC Directives and Prioritizing Standards Projects
      Gerry Adamski will review an action plan developed to resolve as many directives from
      Order 693 as soon as practical. This plan is responsive to the priorities already identified
      by the Standards Committee as well as those identified by FERC staff on May 26, 2010,
      and highlights opportunities to advance additional standards to provide greater evidence
      that NERC and its stakeholders are being responsive to FERC directives.

4. Nominations — D. Taylor
   a. Status of Drafting Team Vacancies
      The attachment provides the status of drafting team vacancies. If a Standards Committee
      member is aware of an individual who may meet the criteria for one of these vacancies,
      David Taylor should be notified.

5. Standards Actions — M. Long
   a. SAR for Rapid Standard Modifications Responsive to Directives from Order 693 —
      Authorize Posting SAR and Expediting the Development Process
       Background: FERC has expressed concern that the industry and NERC have been less
       responsive than desired in providing a timely resolution to directives contained in FERC
       Order No. 693. This project would provide an opportunity to demonstrate that the
       industry and NERC are responsive to FERC directives in a timely fashion.

       To demonstrate that NERC and the industry are addressing directives from Order 693, a
       project has been proposed to expedite processing those directives from Order 693 that
       appear “noncontroversial,” where developing a new or modified requirement should be
       achievable without the need for industry debate on technical issues. This project
       anticipates the development of these modifications on an expedited schedule that
       provides a means of bringing a set of requirements that meet Order No. 693 directives
       through each step in the standards process in an expedited manner. The expectation is
       that by taking this approach, we will be able to present a significant set of industry-
       approved requirements to the Board of Trustees in August 2010, to be followed with
       filings to FERC and other regulatory authorities.


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       As envisioned, and to the extent possible, each set of modifications associated with a
       specific directive (including requirements language, measures, and compliance elements)
       will be balloted individually.




       Request: Authorize posting the SAR and proposed revised standards with the following
       deviations from the standards process:
             Allow staff to select members of existing drafting teams to serve on the standard
              drafting team
             Post the SAR and proposed revisions for a concurrent comment and ballot
              window — the comment period would be 25 days in duration; the ballot pool
              would be formed during the first 15 days of the comment period, followed by a
              10-day initial ballot.
             Allow modifications to the standards between the initial ballot and recirculation
              ballot

   b. Project 2010-10 FAC Order 729 — Authorize Expediting the Process to Meet FERC
      Deadline if Needed
       Background: The SAR and proposed modifications to FAC-012 and FAC-013 to
       comply with Order 729 are due to FERC no later than 60 days before the effective date of
       the ATC standards. Originally NERC thought that the effective date for the ATC
       standards was April 1, 2011, and in FERC’s clarification order, the date was announced
       as January 1, 2011, which makes the “due date” for delivery of the revised FAC-012 and
       FAC-013, no later than the end of October 2010.

       The drafting team is scheduled to meet later this month and, based on stakeholder
       comments, expects to make changes to the standard, but the changes are not expected to
       change the scope or intent of the proposed requirements or implementation plan. If
       changes are significant, the team would normally be required to post the standard for
       another formal comment period, respond to all comments and make conforming changes,
       and then proceed to ballot. If the team needs to make significant changes based on



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       stakeholder comments, there is not sufficient time to complete this project and meet the
       FERC-imposed deadline.

       Request: Authorize the drafting team to move the standard forward to a concurrent
       comment period and balloting if the team needs to make significant changes to the
       standard. Allow the team to make changes between the initial and recirculation ballot.

   c. Project 2007-01 — Underfrequency Load Shedding Project — Authorize
      Concurrent Posting for Comment and Initial Ballot
       Background: The Underfrequency Load Shedding Project is one of the Standards
       Committee’s “High Priority” projects that was last reported to the Standards Committee
       as “at risk” of not meeting its schedule. During its April meeting, the SC authorized all
       drafting teams working on the “Top Ten” projects that were “behind schedule” to use the
       following to advance their project schedules:
             Collect and use information from informal feedback which may include informal
              comment periods
             Make significant changes to a standard following a comment period, before the
              initiation of the ballot
             Make significant changes between initial and successive ballots.

       Since that meeting, FERC has expressed a concern that NERC and its stakeholder
       community, is not addressing directives in a timely manner.

       Request: To demonstrate that it is making a determined effort to address directives, the
       standards staff requests that the deviations from the standards process that were approved
       for use with high priority projects that are behind schedule, be authorized for all projects.

   d. Project 2007-17 — Protection System Maintenance & Testing — Authorize
      Concurrent Posting of the Standard and Definition for Comment and Initial Ballot
       Background: The Protection System Maintenance and Testing Project is one of the
       Standards Committee’s “High Priority” projects that was last reported to the Standards
       Committee as “on schedule.” The team is working on revisions to PRC-005 —
       Protection System Maintenance and revisions to the definition of ‘Protection System.’
       The current schedule anticipates following the process in the Reliability Standards
       Development Procedure — Version 7, with one formal comment period for the definition
       and two formal comment periods for the revised standard before reaching the ballot stage
       of the standards development process. If the team were allowed to follow the process in
       the Standard Processes Manual, the team could advance completion of its work on the
       proposed definition and on the proposed standard by several months.

       Request: To demonstrate that it is making a determined effort to address directives, the
       standards staff requests that the deviations from the standards process that were approved



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       for use with high priority projects that are behind schedule, be authorized for Project
       2007-17.

   e. Project 2007-07 — Vegetation Management — Direct Team to Make Conforming
      Changes; Authorize Concurrent Posting for Comment and Initial Ballot
       Background: The Vegetation Management standard is one of the Standards Committee’s
       “High Priority” projects that was last reported to the Standards Committee as “on
       schedule.” The current schedule anticipates having an informal comment period,
       followed by concurrent formal comment and balloting. The team has experienced delays
       in reaching resolution on the acceptability of the last draft of its standard. Both FERC
       staff and NERC staff have expressed concerns about the proposed draft of the standard,
       as shown in the Summary Quality Review.

       If the team is directed to make conforming changes to its standard to address FERC staff
       concerns and NERC staff concerns, the team will need time to conduct another meeting
       and make conforming changes, resulting in project delays. To make up for the project
       delays, the standards staff recommends that the team be directed to reconsider the advice
       provided by FERC and NERC staffs and then post its work for a concurrent formal
       comment period and ballot period, with the ability to make additional changes to the
       standard between the initial and recirculation ballots.

       Request: To demonstrate that it is making a determined effort to address directives in a
       timely manner, the standards staff requests that the deviations from the standards process
       that were approved for use with high priority projects that are behind schedule, be
       authorized for Project 2007-07.

6. Coordination
   a. Coordination with FERC and other Regulatory Authorities
      Gerry Adamski will provide an update on regulatory activity since the last SC meeting.
   b. Coordination with Regional Managers
      Tim Gallagher will provide an update on standards-related activities involving the
      Regions.

7. Other Items
   a. Update on developing “Informal Guidance” process ― G. Adamski (Attachment 7ai, 7aii)
      Gerry Adamski will provide an update on work underway to develop an Informal
      Guidance process as a method of providing stakeholders with answers to questions
      related to standards.
   b. How to Ensure Productive Group Discussions to Reach Consensus ― FERC
      workshop for drafting team chairs and vice chairs ― D. Taylor
      David Taylor will provide an update on the results of SC member input to the idea of
      providing drafting team chairs and vice chairs with training provided by FERC staff in
      conflict resolution skills.

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June 10, 2010
   c. Duke Energy request for review of interpretation ― Update
      Duke Energy has agreed to accept informal guidance rather than a formal interpretation
      on the issue of using a Cyber Asset to access Critical Cyber Assets (and other non-critical
      Cyber Assets within a defined Electronic Security Perimeter) from outside the asset’s
      Electronic Security Perimeter. The informal guidance is under development and is
      expected to be published in the form of a Compliance Application Bulletin by June 15,
      2010. In parallel, a team is working on the development of an Urgent Action SAR,
      proposed standard revisions, and a guidance document to add a new requirement to CIP-
      00-3 to clarify required performance relative to using a cyber asset to remotely access a
      critical cyber asset.

8. Information Items
   a. Status of all Standards Projects and Interpretations
   b. Status of Order 693 Directives

9. Review of new Action Items — M. Long
   The committee will review new action items identified during the meeting.

10. Executive Committee Actions — M. Long
   a. Items expected to come before the Standards Committee’s Executive Committee
      before July 14–15, 2010
       i)   New Project — Revisions to BAL-003 for Order 693 and March 18, 2010 Order
            Setting Deadline for Compliance
       ii) Urgent Action SAR and Revisions to CIP-005-3 to Add Requirements for Remote
            Access to Cyber Assets — Authorize posting the SAR, standard, and guidance
            document
       iii) Project 2007-04 — Certifying System Operators — Authorize concurrent posting for
            comment and initial ballot; modifications between ballots
       iv) Project 2007-09 — Generator Verification — Authorize concurrent posting for
            comment and initial ballot; modifications between ballots
       v) Project 2008-12 — Coordinate Interchange — Authorize concurrent posting for
            comment and initial ballot; modifications between ballots
       vi) Project 2010-07 — Transmission Requirements at the Generator Interface — Appoint
            a SAR Drafting Team

11. Adjourn




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June 10, 2010