By: Parker, Price, Frullo, Fallon, Krause, H.B. No. 787

et al.

A BILL TO BE ENTITLED

AN ACT

relating to the security of the electric grid.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. (a) In this section:

(1) "Critical infrastructure" means electric utility facilities located in the ERCOT power region. The term does not include power generation facilities.

(2) "Cybersecurity" means the activity, process, ability, capability, or state where information and communication systems and the information contained in those systems are protected from and defended against damage, unauthorized use, modification, or exploitation.

(3) "Electromagnetic pulse threat" means an electromagnetic pulse caused by intentional means, including an act of terrorism.

(4) "Electric utility" has the meaning assigned by Section 31.002, Utilities Code.

(5) "ERCOT" has the meaning assigned by Section 31.002, Utilities Code.

(6) "ERCOT organization" means the independent organization certified under Section 39.151, Utilities Code, for the ERCOT region.

(7) "Geomagnetic disturbance" means an event caused by the interaction of a cloud of charged particles produced by the sun's solar storms and the earth's magnetic field.

(b) The Electric Grid Security Advisory Committee is created. The committee is composed of the following members:

(1) four members appointed by the governor to study electromagnetic pulse threats; and

(2) four members appointed by the governor to study cybersecurity.

(c) Each member of the committee must have professional experience or technical training in:

(1) cybersecurity;

(2) electromagnetic interference;

(3) electric power generation or transmission;

(4) electromagnetic pulse hardening;

(5) physical security and controls;

(6) space physics and weather;

(7) supervisory controls and data acquisition; or

(8) emergency preparedness.

(d) The governor shall designate a member of the committee to serve as presiding officer.

(e) The committee shall convene at the call of the presiding officer.

(f) The committee shall study critical infrastructure and its vulnerability to electromagnetic pulse, geomagnetic disturbance, and cybersecurity threats. The study must:

(1) evaluate and summarize the current state of the electric grid and associated computer systems and networks;

(2) consider and assess the likelihood of potential security threats to the electric grid and associated computer systems and networks;

(3) assess whether further efforts are needed to secure the electric grid and associated computer systems and networks against damage, including the threat of electromagnetic pulse or other attacks and natural threats, including solar flares;

(4) recommend appropriate measures to secure the electric grid and associated computer systems and networks, taking into account the impact of the potential damage being addressed; and

(5) recommend one or more strategies to protect and prepare critical infrastructure in the ERCOT region against relevant threats and present the estimated costs associated with each strategy.

(g) The committee may use research and data on electromagnetic pulse threats and cybersecurity gathered by the United States Department of Defense, the United States Department of Energy, the United States Department of Homeland Security, and the Electric Power Research Institute.

(h) The committee may share its findings with any state agency it considers important to the security of the electric grid or associated computer systems or networks. To the extent allowed by law, a state agency with which the committee shares information is encouraged to implement any recommendations that the agency determines will improve the security of the state's electric grid or associated computer systems or networks.

(i) The ERCOT organization shall cooperate with the committee to provide any information and resources the committee considers important to the study.

(j) A member of the committee is not entitled to compensation but is entitled to reimbursement for the member's travel expenses as provided by Chapter 660, Government Code, and the General Appropriations Act.

(k) A vacancy on the task force shall be filled for the unexpired term in the same manner as the original appointment.

(l) The committee is not subject to Chapter 2110, Government Code.

(m) Not later than December 1, 2018, the committee shall prepare a report of its findings, including any recommendations for legislation resulting from the findings, and shall submit the report to the governor.

(n) The committee's work relates to sensitive matters of security. Notwithstanding any other law, the meetings, work, and findings of the committee are not subject to the requirements of Chapter 551 or 552, Government Code. Each member of the committee shall sign a nondisclosure agreement stating that the member will not disclose to the public any sensitive or identifiable information related to grid security measures or plans.

(o) This section is not intended to penalize electric providers in this state. If deficiencies in the security of the electric grid in the ERCOT region are determined through the process established in this section and the legislature, in consultation with the governor, determines upgrades to the electric grid are necessary, the legislature shall determine whether upgrades will be funded by appropriating general revenue, through a ratepayer cost recovery mechanism, or by a combination of those methods.

(p) This section is not intended to prevent an electric utility, municipally owned utility, or electric cooperative from making prudent investments and reasonable and necessary expenditures to secure the electric grid and seeking recovery of associated costs as authorized by the Utilities Code.

(q) The committee is abolished and this section expires on December 31, 2018.

SECTION 2. Subchapter Z, Chapter 39, Utilities Code, is amended by adding Section 39.917 to read as follows:

Sec. 39.917. INFORMATION RELATED TO GRID SECURITY. The independent organization certified under Section 39.151 shall collect and compile information related to the security of the electric grid. The information is confidential and is not subject to disclosure under Chapter 552, Government Code.

SECTION 3. The governor shall appoint members to the Electric Grid Security Advisory Committee, as required by this Act, as soon as practicable after the effective date of this Act, but not later than the 120th day after the effective date of this Act.

SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2017.