NERC Cyber Security Standards
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1 SANS January, 2008 Stan Johnson Manager of Situation Awareness and Infrastructure Security
2 Agenda History and Status of Applicable Entities Definitions High Level of Standards Requirements Implementation Plans Implementation Schedule 2
3 Brief History of NERC Critical Infrastructure Protection Advisory Group (CIPAG) response to FERC request (5/9/02 to 7/31/02) Appendix G of the FERC SMD NOPR NERC Urgent Action (UA) 1200 Standard Temporary standard currently in place (approved 8/13/04) Focus on Control Center Authorized until August 2006 NERC CIP Standards (formerly NERC 1300) Recently Approved by Industry & NERC Board of Trustees Permanent replacement NERC 1200 & Substation & Power Plant 3
4 Drafting Process Standards Authorization Request: Started on August 21, drafts with industry comments 95 pages of comments and responses Standard: Started on June 8, drafts with industry comments 2580 pages of comments and responses Ballot Version 104 pages of comments and responses 4
5 Current Status Approved by industry: Second Ballot complete March 24, % Approval by industry Approved by NERC Board of Trustees on May 2, 2006 Effective Implementation June 1, 2006 Implementation Schedule starts Submitted to FERC on August 28, 2006 Waiting for FERC action (Docket RM06-22) 5
6 Current Status Staff Assessment of CIP-002 through CIP-009 Issued December 12, 2006 Responses filed February 12, 2007 FERC Final Rule NOPR issued on July 20, 2007 Industry Comment filed by October 5, 2007 Final Rule Issued sometime early
7 Future Status Final Rule will (likely) contain directed changes to standards Clarify Requirements / Remove ambiguity Include implied requirements Some controversial issues Final Rule cannot change the standards language Changes must go through Standards Development Process Changes will therefore have their own implementation plan and schedule 7
8 Definitions 8
9 Definitions Critical Assets: Facilities, systems, and equipment which, if destroyed, degraded, or otherwise rendered unavailable, would affect the reliability or operability of the Bulk Electric System. 9
10 Definitions Cyber Assets: Programmable electronic devices and communication networks including hardware, software, and data. 10
11 Definitions Critical Cyber Assets: Cyber Assets essential to the reliable operation of Critical Assets. 11
12 Definitions Bulk Electric System: As defined by the Regional Reliability Organization, the electrical generation resources, transmission lines, interconnections with neighboring systems, and associated equipment, generally operated at voltages of 100 kv or higher. Radial transmission facilities serving only load with one transmission source are generally not included in this definition. 12
13 Definitions Adverse Reliability Impact: The impact of an event that results in frequency-related instability; unplanned tripping of load or generation; or uncontrolled separation or cascading outages that affects a widespread area of the Interconnection. 13
14 Definitions Technical Feasibility: refers only to engineering possibility and is expected to be a can/cannot determination in every circumstance. It is also intended to be determined in light of the equipment and facilities already owned by the Responsible Entity. The Responsible Entity is not required to replace any equipment in order to achieve compliance with the Cyber Security Standards. When existing equipment is replaced, however, the Responsible Entity is expected to use reasonable business judgment to evaluate the need to upgrade the equipment so that the new equipment can perform a particular specified technical function in order to meet the requirements of these standards. (from the FAQ) 14
15 Definitions Reasonable Business Judgment: The phrase is in NERC Standards CIP-002 through CIP-009 to reflect and to inform any regulatory body or ultimate judicial arbiter of disputes regarding interpretation of these Standards that Responsible Entities have a significant degree of flexibility in implementing these Standards. This principle, however, does not protect an entity from simply failing to make a decision. (from the FAQ) 15
16 Definitions Significant Adverse Impact: With due regard for the maximum operating capability of the affected system, one or more of the following conditions arising from faults or disturbances, shall be deemed as having significant adverse impact: System instability; Unacceptable system dynamic response or equipment tripping Voltage limits in violation of applicable emergency limits; Loadings on transmission facilities in violation of applicable emergency limits; Unacceptable loss of load. (IEEE C ) 16
17 Applicable Entities Reliability Coordinator Balancing Authority Interchange Authority Transmission Service Provider Transmission Owner Generator Owner Generator Operator Load Serving Entity NERC Office * Regional Reliability Organization * Transmission Operator See * Not part of NERC Functional Model 17
18 Not Applicable Facilities regulated by the U.S. Nuclear Regulatory Commission or the Canadian Nuclear Safety Commission Communications networks between discrete Electronic Security Perimeters Entities with no Critical Cyber Assets determined after complying with NERC Standard CIP-002 Must only annually comply with Standard CIP
19 General Concept Applying IT thought concepts to control network environment Policy & Procedure Access control Security perimeters Auditing Change management Focus on Bulk Electric System Critical Assets Focus on Critical Cyber Assets Focus on routable protocol communications Process and documentation centric Including annual reviews 19
20 NERC CIP Standards CIP-002 Critical Cyber Assets CIP-003 Security Management Controls CIP-004 Personnel and Training CIP-005 Electronic Security CIP-006 Physical Security CIP-007 Systems Security Management CIP-008 Incident Reporting & Response Management CIP-009 Recovery Plans Implementation Plan 20
21 CIP-002 Critical Cyber Assets Derive list of Critical Assets Risk-based approach Electrically critical for reliable BES operations Derive list of Critical Cyber Assets Essential to the reliable operations of Critical Assets Considerations for communications characteristics Senior Management approval Annual review May determine null set of Critical Cyber Assets 21
22 Risk-Based Methodology Risk to Bulk Electric System therefore an Impact Analysis Must consider : Control centers and backup control centers performing the functions of the entities listed in the Applicability section of this standard. Transmission substations that support the reliable operation of the Bulk Electric System. Generation resources that support the reliable operation of the Bulk Electric System. Systems and facilities critical to system restoration, including blackstart generators and substations in the electrical path of transmission lines used for initial system restoration. Systems and facilities critical to automatic load shedding under a common control system capable of shedding 300 MW or more. Special Protection Systems that support the reliable operation of the Bulk Electric System. Any additional assets that support the reliable operation of the Bulk Electric System that the Responsible Entity deems appropriate to include in its assessment. 22
23 Critical Cyber Assets Bulk Electric System Assets Critical Cyber Assets Critical Assets Electric System 23
24 CIP-003 Security Management Controls Documented Cyber Security Policy control system specific Senior Management responsibility Exception process defined Information classification & protection program Access control program Change control & configuration management program 24
25 CIP-004 Personnel and Training Awareness Continual, informal, ongoing Training Annual, formal, attendance records Personal Risk Assessment a.k.a Background Checks Management observation Access management Approvals, records retention, termination Escorted access 25
26 CIP-005 Electronic Security Electronic Security Perimeter identification Contains all Critical Cyber Assets May have multiple Electronic Security Perimeters May contain non-critical cyber assets Access point identification & protection Electronic access controls Access point protection Electronic access monitoring Review access logs Cyber vulnerability assessment (of perimeter) 26
27 Electronic Security Perimeter Network of Critical Cyber Assets Network of Critical Cyber Assets may contain Non- Critical Assets Network of Non- Critical Cyber Assets Serial RTU Communication Another Network of Critical Cyber Assets RTU 27
28 CIP-006 Physical Security Physical Security Plan with identified Physical Security Boundary Must contain all Critical Cyber Assets May have multiple Physical Security Perimeters Physical access controls e.g., electronic card key Physical access monitoring e.g., CCTV Physical access logging e.g., card access log Access log retention and review 28
29 CIP-007 Systems Security Management Test Procedures for new systems and significant changes Disable unused & unneeded ports and services Security patch management Malicious software prevention Account management Security event & status monitoring Disposal or redeployment of Cyber Assets Cyber vulnerability assessment (of Cyber Assets) 29
30 CIP-008 Incident Reporting & Response Management Documented Cyber Security Incident Response Plan Refer to NERC / ES-ISAC Indications Analysis & Warning (IAW) procedures Currently under review by CIPC Annual exercise of plan Incident documentation Keep documentation relating to incidents, including logs, surveillance, investigations, recovery, reports, etc. Special care if law enforcement and prosecution will be involved 30
31 CIP-009 Recovery Plans Recovery plan documentation For varying duration and severity Defined roles and responsibilities Annual exercise of plans Update plans to reflect environment changes Backup, restore and secure storage of information Testing backup media 31
32 Implementation Plan Phased Plan 4 (really 3½) levels of compliance: BW Begin Work Entity has a plan to address requirements SC Substantially Compliant Entity is implementing its plan C Compliant Entity has completed technical work, but does not have a full year of required logs AC Auditably Compliant Entity meets full requirements of standard with all logs and records 32
33 Implementation Plan Four separate compliance schedule tables: 1) Balancing Authorities and Transmission Operators that were required to self-certify compliance to UA1200, and Reliability Coordinators 2) Transmission Operators and Balancing Authorities that were not required to self-certify compliance to UA1200, along with Transmission Providers, and the Offices of NERC and the Regional Reliability Organizations 33
34 Implementation Plan 3) All entities required to register to the Functional Model during calendar year 2006 (pursuant to the NERC / ERO filing activities). 4) All entities registering to a Functional Model function in 2007 and thereafter. Entities that currently do not exist 34
35 Implementation Plan Implementation Plan tables specified by CIP Standard and individual requirement 4 years for all currently (2006) registered entities to reach Auditable Compliant (2007 to 2010) Maximum of 3 years to complete work and achieve Compliant (2009) Some requirements in Table 1 reach Compliant in
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