Electric Grid Physical Security: Recent Developments

Electric Grid Physical Security: Recent Developments

INSIGHTi

Electric Grid Physical Security: Recent
Developments
Updated February 7, 2023
On February 6, 2023, the Justice Department announced the arrest of two individuals for planning to
attack five electric power transmission substations around Baltimore, MD, allegedly as part of a “racially
or ethnically motivated violent extremist” conspiracy. On December 25, 2022, four electric distribution
substations in the Tacoma, WA, area were physically attacked, allegedly by two malicious individuals in a
burglary scheme, causing millions of dollars in damage and cutting power to some 30,000 utility
customers. Three weeks earlier, unknown perpetrators attacked two substations in Moore County, NC,
causing an extended blackout for 45,000 area customers. According to press analysis of Department of
Energy (DOE) incident reports, such attacks are becoming more frequent. The Baltimore, Tacoma, and
Moore County incidents are just the latest examples of physical threats against U.S. electric power
infrastructure that have drawn attention among policymakers and prompted calls for more extensive grid
security standards.
Federal Regulation of Grid Security
The Energy Policy Act of 2005 (P.L. 109-58) mandated the implementation of electric transmission
reliability standards under new authority granted to the Federal Energy Regulatory Commission (FERC),
the independent federal regulator of the interstate electric transmission system. The commission
subsequently designated the North American Electric Reliability Corporation (NERC) as the Electric
Reliability Organization certified to establish and enforce reliability standards—including security
standards—for the U.S. electric transmission grid, subject to commission review. In 2008, FERC’s Order
706 approved NERC’s initial security standards for critical electric infrastructure; however, these
standards primarily addressed cybersecurity, not physical security.
A 2013 rifle attack by unknown perpetrators on a high-voltage electric power substation in Metcalf, CA,
revealed the need for physical security standards in addition to cybersecurity standards for electric power.
In response to the Metcalf attack, as well as other grid incidents and findings from utility security
exercises, Congress enacted provisions in the FAST Act (P.L. 114-94) to protect or restore the reliability
of critical electric infrastructure during a grid security emergency. Congress also sought stronger physical
security standards from FERC under the commission’s existing statutory authority. Accordingly, on
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March 7, 2014, FERC issued Order 802 requiring NERC to promulgate new mandatory standards for the
physical security of transmission critical infrastructure.
After consultation within the utility industry, NERC proposed a new Physical Reliability Security
Standard in May 2014. FERC approved the initial standard the following November, as well as two
subsequent revisions, the most recent (CIP-014-3) in 2022. The standard applies to electric transmission
owners with assets operating at 500 kilovolts (kV) or higher as well as owners with substations operating
between 200 kV and 499 kV if they meet certain criteria. It consists of six principal requirements,
including risk assessments; threat and vulnerability assessments for critical facilities; implementation of
physical security plans for critical facilities; and a process for compliance monitoring and assessment.
(For more background and details about the development of the CIP-014 standard, see CRS Report
R45135, NERC Standards for Bulk Power Physical Security: Is the Grid More Secure?)
Revisiting the NERC Standards
The targeted facilities in the Baltimore incident appear to be subject to NERC’s physical security
standards, with mandated physical security measures (e.g., protective walls) reportedly present in at least
one of them. However, over the course of the emergency response to both the Moore County and Tacoma
substation attacks, it became apparent that there was little physical security at those affected sites, which
made it relatively easy for the perpetrators to disable them. Because the Moore County and Tacoma
substations are part of local electric distribution systems rather than transmission systems, they are not
under FERC’s jurisdiction and not subject to NERC’s standards. Rather, physical security at these
substations is under the jurisdiction of state utility regulators.
Although the distribution substation attacks did not affect the regional transmission system, they
nonetheless caused significant service outages and negatively impacted local communities. Consequently,
some officials and Members of Congress have questioned whether states or the federal government
should do more to prevent grid infrastructure attacks in the future. Likewise, on December 15, 2022,
FERC issued an order directing NERC to submit a report within 120 days evaluating the adequacy of the
applicability criteria and risk assessment provisions of CIP-014-3. The report must also examine whether
a minimum level of physical security should be required for all electric transmission stations, substations,
and primary control centers.
Congressional Initiatives
Even before the Tacoma and Moore County incidents, initiatives in the 117th Congress sought to bolster
the physical security of the electric grid, including electric distribution. The Infrastructure Investment and
Jobs Act (IIJA, P.L. 117-58) includes provisions to provide financial assistance to states for developing
and implementing state energy security plans to secure energy infrastructure “against all physical and
cybersecurity threats” (§366). The act also requires DOE and the Department of Homeland Security to
submit a report to Congress assessing “priorities, policies, procedures, and actions for enhancing the
physical security and cybersecurity of electricity distribution systems,” among other provisions (§40121).
The Grid Security Research and Development Act (H.R. 4939) would have directed DOE and other
agencies to conduct a research, development, and demonstration program to protect the electric grid,
“including assets connected to the distribution grid,” from physical attacks by increasing the security
capabilities of the sector and accelerating relevant technology development.
The 118th Congress may continue to examine the state of electric grid physical security, including the
security of grid infrastructure not currently subject to NERC’s existing security standards. Among many
specific issues of potential interest, Congress may consider the evolving physical threat environment,

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oversight of physical security implementation, the relationship between federal and state grid security
initiatives, and the cost-effectiveness of security requirements. Congress may also examine tradeoffs
between investments to “harden” grid infrastructure (e.g., physical barriers) and investments to make the
grid more resilient to physical attacks (e.g., additional transmission lines). As CIP-014 implementation
and other physical security initiatives proceed, Congress also may examine the power sector’s overall
progress in securing its infrastructure, including organizational and structural changes supporting physical
security as a corporate priority.

Author Information

Paul W. Parfomak

Specialist in Energy Policy

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff
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