Meeting Minutes Compliance and Certification Committee March 3, :00 p.m. - 5:00 p.m. ET March 4, :00 a.m. - Noon ET

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1 Meeting Minutes Compliance and Certification Committee March 3, :00 p.m. - 5:00 p.m. ET March 4, :00 a.m. - Noon ET NERC Corporate Offices 3353 Peachtree Rd NE, Suite 600 North Tower Atlanta, GA Introductions and Chair s Remarks Remarks NERC Board and Executive Management NERC Antitrust Compliance Guidelines and Public Announcement Agenda Items 1. Administrative Secretary and Patti Metro a. Compliance and Certification Committee (CCC) Roster [LINK] Proxies for this meeting include the following individuals: 2. Committee Business a. Consent Agenda Joseph Fox proxy for Caroline Dupuis James C. Crawford III proxy for Keith Comeaux Matt Morais proxy for William Temple i. Meeting Agenda (Approve) Approved as revised ii. CCC December 2014 Meeting Minutes* (Approve) Patti Metro [LINK] Approved b. Review of CCC action items Jennifer Flandermeyer The committee updated the action item tracker to reflect current status of action items. c. NERC Board and MRC Update from February 2015 meetings * Jennifer Flandermeyer Ms. Flandermeyer provided a Board update. Refer to CCC package for written summary of the report.

2 d. NERC Board Enterprise-Wide Risk Committee report Patti Metro Ms. Flandermeyer and Ms. Metro attended the closed meeting for the Enterprise-Wide Risk Committee. They reviewed the survey results from the Board committee surveys on how the committee runs assessments. The CCC chair will participate in self-assessment surveys Mechelle Thomas provided the status of NERC mitigation plans for outstanding items from previous CCC audits. e. Appoint 2015 Nominating Subcommittee Update Patti Metro Ms. Nalley was appointed as chair of nominating subcommittee. Mr. Conway and Mr. Hobson agreed to continue participating on the subcommittee. The subcommittee requested volunteers to fill openings, and Mr. Stanton, Mr. Smith, and Ms. Milanes volunteered for the subcommittee. f. Independent Audits* Mechelle Thomas Ms. Thomas gave background on her role and provided updates on two audits. Final report Standards Process Manual (SPM) and Standards Applicable to NERC (SAN) Ms. Thomas gave an overview of the audit which began in July 2014 and ended in November The design of the implementation plan was completed in January The Board reviewed the findings as well at its February 2015 meeting. Ms. Thomas presented an overview of the number of findings per audit. Closeout on status of non-conformance findings from audit of NERC Compliance Monitoring Enforcement Program (CMEP) and Organization Registration and Certification Program (ORCP) Ms. Thomas presented the findings of the audit and outstanding action items. The CCC will prepare for another audit of Compliance Assurance, Compliance Enforcement, and Organization Registration and Certification in The CCC expressed support of the audit process and a commitment to meet its obligations under the Rules of Procedure. 3. Reliability Issues Steering Committee (RISC) Update Terry Bilke Mr. Bilke gave an update on RISC activities. He presented on the background of the RISC and its processes. He noted the key risk themes identified in 2014 and recommendations for The report detailing these items is available publicly. Mr. Bilke reported that RISC members will conduct interviews of executives in order to identify risks in Subcommittee Updates a. Nominating Subcommittee Helen Nalley Ms. Nalley gave an update on the Board s approval of CCC members terms at the February 2015 Board meeting. There are 2 individuals pending approval by the Board. i. CCC Sector openings Compliance and Certification Committee Minutes March 3-4,

3 There are 3 nonvoting member vacancies: US Federal, Canadian Federal, and Canadian Provincial. ii. CCC Member Upcoming Term Expirations There are five members with terms expiring in May b. ERO Monitoring Subcommittee (EROMS) Tom Abrams i Work Plan Status on deliverables ii. Status of CCC Monitoring Procedures updates Mr. Abrams presented the CCC Monitoring Procedures document. The CCC revised four documents associated with its monitoring role to present for approval via ballot. CCCPP- 001, 002, 003, and 007 were revised. The CCC is responsible for monitoring standards applicable to NERC; there will be revisions to the procedure document if new standards become applicable. The CCC simplified the program documents and updated them to align them with the processes the CCC has been using. The Board asked the CCC to share its documents with a small group of the MRC to further awareness of roles and responsibilities as well as understanding. iii. CCC Charter revisions Ms. Metro presented revisions to the CCC Charter. The documents will be sent to the CCC for review and for CCC vote via . The revisions focused on changing compliance to adherence when referring to NERC s obligations to follow the Rules of Procedure. The changes also include the four focus areas in the charter. The CCC plans to present the CCC Charter to the Board in May iv Stakeholders Perception Survey combine with NERC Annual Survey - Kristin Iwanechko Ms. Iwanechko presented the status of the responses to the combined survey, referred to as the ERO Enterprise Effectiveness Survey. She noted that the survey vendor is currently analyzing the data received and the initial analysis is expected at the end of March. The analysis will include a year-over-year comparison for the CCC questions, which will be sent to the EROMS. The EROMS will develop a report for the NERC Board of Trustees that will include recommendations for NERC. In addition, NERC and the Regional Entities will identify areas to focus on based on the overall analysis and develop action plans for improvements. c. Compliance Processes and Procedures Subcommittee (CPPS) Matt Goldberg i Work Plan Status on deliverables ii. Risk-based compliance monitoring and enforcement success metrics - Terry Bilke and Ed Kichline Compliance and Certification Committee Minutes March 3-4,

4 Mr. Bilke presented on the interaction between the CCC and the Reliability Issue Steering Committee (RISC). RISC asked CCC for input on managing reliability risk by leveraging compliance data. The team recommends using metrics ALR CP-1 (risk-focused) and ALR CP-2 (impact-focused) as input for managing reliability risk. The CPPS requested that the CCC provide comments on the recommendations as outlined in a document appended to the agenda. The CPPS requested comments by March 27 be submitted to Terry Bilke for presentation to RISC at its April meeting. The CPPS also requested endorsement from the CCC on this approach. Motion: The CCC moved to endorse the approach on using the recommendations. The motion passed. iii. CCCPP-010 (Approve) Mr. Goldberg stated that the CPPS worked with NERC to develop success criteria to assess the effectiveness of the ERO implementation of RAI or Risk-Based Compliance Monitoring and Enforcement Programs. The CPPS discussed comments received on the document, which included sequencing of ICE and the self-logging program. The CPPS approved the document. Motion: To approve the new version of CCCPP-010, including any non-material changes to which the CPPS Chair and NERC Compliance Assurance agree. The motion passed, and the CCC approved the document. d. Organization Registration and Certification Subcommittee (ORCS) Ben Engelby i Work Plan Status on deliverables ii. Risk-Based Registration (RBR) Phase 2 Mr. Engelby noted that there is a scope document being developed and is near approval. He provided updates on upcoming technical conferences for Generator Owners and Generator Operators. He reported that Phase I was filed with FERC in December. The subcommittee also discussed certification and developed a matrix regarding Joint Registration Organizations. He reported there will be no filings for Rules of Procedure changes this year. ORCS will await the findings developed based on the input from the technical conferences before pursuing further discussions about necessary changes for the Rules of Procedure based on RBR activities. iii. Mapping of transmission assets to a single TOP Mr. Engelby noted that the subcommittee discussed that some entities apply this rule from the Rules of Procedure differently. 5. NERC Staff Reports Including Status of CCC Work Plan Deliverables a. Risk-based Compliance Monitoring and Enforcement (CMEP) Compliance and Certification Committee Minutes March 3-4,

5 i. Risk-based Compliance Monitoring and Enforcement / RAIAG update - Steven Noess Mr. Noess presented on 2014 accomplishments from the Risk-based CMEP, such as performance training for Regional Entities and extensive stakeholder outreach. He provided details on the implementation of Risk-based CMEP in Mr. Kichline noted the elements that would be included in the compliance filing. ii. RSAW and Guidance Development - Steven Noess Mr. Noess provided an update on RSAW development. He specifically focused on the CIP Version 5 RSAWs being developed. He stated that further refinements to the RSAW process would be discussed and considered in Committee discussion included conversation around how to include the work completed previously on RSAWs and how the CCC could support NERC in this effort. iii. FERC RAI Order - Steven Noess and Teri Stasko Mr. Noess provided an overview of the FERC Order approving the Risk-based approach. He outlined actions NERC plans to take in response to the Order. iv. March 5 Outreach event - Adina Mineo Ms. Mineo provided details of the event. v. Spring 2015 Standards and Compliance Workshop update (Joint meeting with Compliance Auditors) - Adina Mineo o Agenda and registration information [Registration] [Agenda] Ms. Mineo provided details of the event. b. Risk Based Registration Update Terry Brinker Mr. Brinker provided an update on risk-based registration. He noted that NERC is waiting for FERC approval but is prepared to act upon issuance of an order. NERC is still anticipating action from FERC by the end of the year. c. CIP Version 5 Transition, Lessons Learned, and FAQs - Steven Noess Mr. Noess provided an update on CIP Version 5 Transition activities. Mr. Noess provided an update on upcoming postings. 6. Member Round Table Patti Metro 7. Review of Action Items and CCC Work Plan Deliverables i. Ms. Iwanechko and Ms. Thornton will CCC plus list on feedback on ERO survey ii. NERC staff to verify language in EROMS procedures (closed) iii. CCC members to provide feedback on full RISC report by March 27 Compliance and Certification Committee Minutes March 3-4,

6 iv. CCC Chair to send EROMS charter (closed) v. Scheduling hearing training to new members (Ms. Stasko and Ms. Metro) vi. Frequency report on regional consistency tool (Mr. Edge) 8. Future Meeting Dates a. June 10-11, 2015: Arlington, VA (NRECA host location) b. September 16-17, 2015: US Central/Midwest (located w/other standing committees) c. December 2-3, 2015: Atlanta, GA (NERC) d. March 1-2, 2016: Atlanta, GA (NERC) 9. Adjourn *Background materials provided Compliance and Certification Committee Minutes March 3-4,

Meeting Minutes Compliance and Certification Committee September 16, :00 p.m. - 5:00 p.m. CT September 17, :00 a.m.

Meeting Minutes Compliance and Certification Committee September 16, 2015 1:00 p.m. - 5:00 p.m. CT September 17, 2015 8:00 a.m. - Noon CT JW Marriott New Orleans 614 Canal Street New Orleans, LA 70130