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CRITICAL INFRASTRUCTURE

PROTECTION

NERC 1200 CIP 002 - 009

CRITICAL INFRASTRUCTURE

PROTECTION

NERC 1200 CIP 002 - 009

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Once Upon a Time

• Shared rights and responsibilities for transmission planning and operations, transmission service– Payments in kind– Loose coordination agreements– No third-party transmission access

• Costs of service allocated broadly– Federal and state rate regulation

• North American Electric Reliability Council (NERC) sets voluntary operating policies– Membership comprised of eight regional reliability councils– Regional councils set broad range of requirements to implement

operating policies

• Shared rights and responsibilities for transmission planning and operations, transmission service– Payments in kind– Loose coordination agreements– No third-party transmission access

• Costs of service allocated broadly– Federal and state rate regulation

• North American Electric Reliability Council (NERC) sets voluntary operating policies– Membership comprised of eight regional reliability councils– Regional councils set broad range of requirements to implement

operating policies

Once Upon a Time

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Things Changed

• Following 1979-81 severe economic dislocations, broad-based initiatives to bring market discipline to business sectors

• Intense debates produced Energy Policy Act of 1992– Authorizes FERC to set rules for third-party

access to high-voltage transmission to make sales for resale

– Order 888 that eventually lead to Order 2003 Order 888 that eventually lead to Order 2003 standards for generation interconnection.standards for generation interconnection.

• Following 1979-81 severe economic dislocations, broad-based initiatives to bring market discipline to business sectors

• Intense debates produced Energy Policy Act of 1992– Authorizes FERC to set rules for third-party

access to high-voltage transmission to make sales for resale

– Order 888 that eventually lead to Order 2003 Order 888 that eventually lead to Order 2003 standards for generation interconnection.standards for generation interconnection.

Things Changed

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FERC Jurisdiction

• “…over the ERO,…any regional entities, and all users, owners, and operators of the bulk-power system,…” and any entities included in the ERO rules.

• “…for purposes of approving standards …and enforcing compliance.”

• “Bulk power system”– “…facilities and control systems necessary for operating an

interconnected electric energy transmission network, and electric energy from generation…needed to maintain reliability,…” excluding local distribution facilities.

• “…over the ERO,…any regional entities, and all users, owners, and operators of the bulk-power system,…” and any entities included in the ERO rules.

• “…for purposes of approving standards …and enforcing compliance.”

• “Bulk power system”– “…facilities and control systems necessary for operating an

interconnected electric energy transmission network, and electric energy from generation…needed to maintain reliability,…” excluding local distribution facilities.

FERC Jurisdiction

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E R O

• Natural evolution to seek clarification of roles, rights, and responsibilities for physical system planning and operations

• 1998– Call begins for federal legislation requiring creation of

organization to set and enforce mandatory standards

• 2005– Energy Policy Act of 2005 (EPAct) creates Section

215 of the Federal Power Act• Expands FERC regulatory authority to reliability

• Defines Electric Reliability Organization (ERO)

• Natural evolution to seek clarification of roles, rights, and responsibilities for physical system planning and operations

• 1998– Call begins for federal legislation requiring creation of

organization to set and enforce mandatory standards

• 2005– Energy Policy Act of 2005 (EPAct) creates Section

215 of the Federal Power Act• Expands FERC regulatory authority to reliability

• Defines Electric Reliability Organization (ERO)

E R O

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Energy Policy Act of 2005Energy Policy Act of 2005

• Assigns ownership of the issue of bulk power system reliability to FERC in the US

• Applies to all users, owners, and operators of the bulk power system

• Create an Electric Reliability Organization– NERC named ERO in July 2006– Creates reliability standards– Sets reliability standards for bulk power system – Monitors & enforces compliance with standards

• Assigns ownership of the issue of bulk power system reliability to FERC in the US

• Applies to all users, owners, and operators of the bulk power system

• Create an Electric Reliability Organization– NERC named ERO in July 2006– Creates reliability standards– Sets reliability standards for bulk power system – Monitors & enforces compliance with standards

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NERC REGIONS

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Who Does What?RO - Reliability Coordinator

TO -Transmission Owner

GO - Generation Owner

LSE - Load Serving Entity

RO - Reliability Coordinator

TO -Transmission Owner

GO - Generation Owner

LSE - Load Serving Entity

BA - Balancing Authority

TSP -Transmission Service Provider

TO -Transmission Operator

GO - Generation Operator

RRO - Regional Reliability Organization

BA - Balancing Authority

TSP -Transmission Service Provider

TO -Transmission Operator

GO - Generation Operator

RRO - Regional Reliability Organization

Who Does What?

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The Big Picture

NPCC SERC ERCOT RFC FRCC WECC MRO SPP

RC BA TO TOP TSP GO GOP LSE NERCRRO

ImplementationScheduleTable 1

ImplementationScheduleTable 2

ImplementationSchedule Table 3

ImplementationSchedule Table 4

CIP003 CIP004 CIP005 CIP006 CIP007 CIP008 CIP009

BeginWork

SubstantiallyCompliant

CompliantAuditablyCompliant

CIP002 - Critical Cyber Asset Identification

ControlCenters

TransmissionSubstations Generation

SystemRestoration(Blackstart)

AutomaticLoad Shed(300 MW)

SpecialProtectionSystems

Other

Controls and Documentation

The Big Picture

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Scope of CIP 002-009Scope of CIP 002-009

• Applies to these bulk power system entities:– IOUs– Coops– Federal– Municipals– State agencies– Others

• Within the entities– Operations– Substations– IT– Generating Plants

• Applies to these bulk power system entities:– IOUs– Coops– Federal– Municipals– State agencies– Others

• Within the entities– Operations– Substations– IT– Generating Plants

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Cyber Security Standards

– CIP002: Critical Cyber Asset Identification– CIP003: Security Management Controls– CIP004: Personnel and Training– CIP005: Electronic Security Perimeter(s)– CIP006: Physical Security– CIP007: Systems Security Management– CIP008: Incident Reporting and Response

Planning– CIP009: Recovery Plans for Critical Cyber

Assets

– CIP002: Critical Cyber Asset Identification– CIP003: Security Management Controls– CIP004: Personnel and Training– CIP005: Electronic Security Perimeter(s)– CIP006: Physical Security– CIP007: Systems Security Management– CIP008: Incident Reporting and Response

Planning– CIP009: Recovery Plans for Critical Cyber

Assets

Cyber Security Standards

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BULK ELECTRIC SYSTEMBULK ELECTRIC SYSTEMBULK ELECTRIC SYSTEMBULK ELECTRIC SYSTEM

As defined by the Regional Reliability As defined by the Regional Reliability Organization, the electrical generation Organization, the electrical generation resources, transmission lines, resources, transmission lines, interconnections with neighboring interconnections with neighboring systems, and associated equipment, systems, and associated equipment, generally operated at voltages of 100 kV generally operated at voltages of 100 kV or higher. Radial transmission facilities or higher. Radial transmission facilities serving only load with one transmission serving only load with one transmission source are generally not included.source are generally not included.

As defined by the Regional Reliability As defined by the Regional Reliability Organization, the electrical generation Organization, the electrical generation resources, transmission lines, resources, transmission lines, interconnections with neighboring interconnections with neighboring systems, and associated equipment, systems, and associated equipment, generally operated at voltages of 100 kV generally operated at voltages of 100 kV or higher. Radial transmission facilities or higher. Radial transmission facilities serving only load with one transmission serving only load with one transmission source are generally not included.source are generally not included.

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CIP 002CIP 002Critical Cyber Asset Critical Cyber Asset

Identification 1Identification 1

CIP 002CIP 002Critical Cyber Asset Critical Cyber Asset

Identification 1Identification 1

FilteringIdentifying Critical Assets

Critical ElectricAssets

Outputlist of CCAs

Bulk Electric Assets

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Risk BasisRisk Basis

If the asset were to be compromised or removed from service, what would be the impact, either direct or indirect to transmission grid reliability or operatability.’

If the asset were to be compromised or removed from service, what would be the impact, either direct or indirect to transmission grid reliability or operatability.’

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Methodology Methodology A four (4) step process.

• Task 1: Assemble team of SMEs (Subject Mater Experts) to list electric assets by both physical and calculated means using power flow models and system simulations.

• Task 2: Eliminate non critical assets and list in ‘Null

List’; remaining are Critical Electrical Assets.

• Task 3: Select Cyber Assets supporting Critical Electric Assets.

• Task 4: Determine Critical Cyber Assets.

A four (4) step process.

• Task 1: Assemble team of SMEs (Subject Mater Experts) to list electric assets by both physical and calculated means using power flow models and system simulations.

• Task 2: Eliminate non critical assets and list in ‘Null

List’; remaining are Critical Electrical Assets.

• Task 3: Select Cyber Assets supporting Critical Electric Assets.

• Task 4: Determine Critical Cyber Assets.

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CIP 002CIP 002Critical Cyber Asset Critical Cyber Asset

Identification 2Identification 2

Filtering Essential to operation

of critical asset and

meets CIP002-R3

CyberAssets

Critical ElectricAssets

CRITICAL CYBER ASSETS

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Cyber Asset DefiniationCyber Asset DefiniationCyber Asset DefiniationCyber Asset Definiation

Critical cyber assets are assets that meet at Critical cyber assets are assets that meet at least one of the following requirements:least one of the following requirements:– the cyber asset uses a routable protocol to the cyber asset uses a routable protocol to

communicate outside the electronic security communicate outside the electronic security perimeter; or,perimeter; or,

– the cyber asset uses a routable protocol within a the cyber asset uses a routable protocol within a control center; or,control center; or,

– the cyber asset is dial-up accessible.the cyber asset is dial-up accessible.

Critical cyber assets are assets that meet at Critical cyber assets are assets that meet at least one of the following requirements:least one of the following requirements:– the cyber asset uses a routable protocol to the cyber asset uses a routable protocol to

communicate outside the electronic security communicate outside the electronic security perimeter; or,perimeter; or,

– the cyber asset uses a routable protocol within a the cyber asset uses a routable protocol within a control center; or,control center; or,

– the cyber asset is dial-up accessible.the cyber asset is dial-up accessible.

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RAM - TRAM - TRAM-DSM was the first RAM developed at Sandia for critical infrastructures. Bonneville Power Administration commissioned Sandia National Laboratories to develop the Risk Assessment Methodology for Transmissions (RAM-TSM) based on RAM-DSM.

RAM-TSM is a way to analyze the current security risks and systematically characterize and assess the security requirements of the nation's electrical transmission system facilities to deter, prevent, and mitigate malevolent attacks.

The methodology and training has been made available to owners, operators, managers, and others responsible for transmitting electrical power.

RAM-DSM was the first RAM developed at Sandia for critical infrastructures. Bonneville Power Administration commissioned Sandia National Laboratories to develop the Risk Assessment Methodology for Transmissions (RAM-TSM) based on RAM-DSM.

RAM-TSM is a way to analyze the current security risks and systematically characterize and assess the security requirements of the nation's electrical transmission system facilities to deter, prevent, and mitigate malevolent attacks.

The methodology and training has been made available to owners, operators, managers, and others responsible for transmitting electrical power.

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What to do next?What to do next?What to do next?What to do next?

• Attend one of the NERC regional workshops on cyber security Attend one of the NERC regional workshops on cyber security standardsstandards

• ftp://www.nerc.com/pub/sys/all_updl/cip/ftp://www.nerc.com/pub/sys/all_updl/cip/CSS_Workshop_Announcement.pdfCSS_Workshop_Announcement.pdf

• Get involved in NERC standards processGet involved in NERC standards process– Registered Ballot BodyRegistered Ballot Body– Standards drafting teamsStandards drafting teams– Comment of proposed standardsComment of proposed standards

• Get involved in your regions standards processGet involved in your regions standards process• Find out about compliance assurance within your organizationFind out about compliance assurance within your organization

– Some companies building formal internal compliance Some companies building formal internal compliance programsprograms

• Attend one of the NERC regional workshops on cyber security Attend one of the NERC regional workshops on cyber security standardsstandards

• ftp://www.nerc.com/pub/sys/all_updl/cip/ftp://www.nerc.com/pub/sys/all_updl/cip/CSS_Workshop_Announcement.pdfCSS_Workshop_Announcement.pdf

• Get involved in NERC standards processGet involved in NERC standards process– Registered Ballot BodyRegistered Ballot Body– Standards drafting teamsStandards drafting teams– Comment of proposed standardsComment of proposed standards

• Get involved in your regions standards processGet involved in your regions standards process• Find out about compliance assurance within your organizationFind out about compliance assurance within your organization

– Some companies building formal internal compliance Some companies building formal internal compliance programsprograms

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NERC WORKSHOPNERC WORKSHOP• How to make an Asset Inventory• Set up Change Management• Physical and Electronic Access Control and Monitoring• Governance• Incident Response• Documentation, Classification & Control• Network Management• Personnel Risk Assessment• Physical Security• Recovery Operations• Systems Management• Testing procedures• Employee Training• Performing Vulnerability Assessments• Prepare for a Compliance Audit.

• How to make an Asset Inventory• Set up Change Management• Physical and Electronic Access Control and Monitoring• Governance• Incident Response• Documentation, Classification & Control• Network Management• Personnel Risk Assessment• Physical Security• Recovery Operations• Systems Management• Testing procedures• Employee Training• Performing Vulnerability Assessments• Prepare for a Compliance Audit.

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NERC CIP WorkshopsNERC CIP Workshops• 1-1/2 days

• Help entity identify steps needed to determine if it has critical assets and critical cyber assets under CIP standards.

• To be held in 9 remaining cities through January 2007

• For information and registration go to:

• 1-1/2 days

• Help entity identify steps needed to determine if it has critical assets and critical cyber assets under CIP standards.

• To be held in 9 remaining cities through January 2007

• For information and registration go to:

ftp://www.nerc.com/pub/sys/all_updl/cip/CSS_Workshop_Announcement.pdf

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AcknowledgementsAcknowledgements

Marty Sidor – NERC Director of EducationMarty Sidor – NERC Director of Education

Mark Kuras – NERC – Standards Education TeamMark Kuras – NERC – Standards Education Team

Dave Dworzak – Edison Electric Institute Dave Dworzak – Edison Electric Institute

Marty Sidor – NERC Director of EducationMarty Sidor – NERC Director of Education

Mark Kuras – NERC – Standards Education TeamMark Kuras – NERC – Standards Education Team

Dave Dworzak – Edison Electric Institute Dave Dworzak – Edison Electric Institute

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