BILL ANALYSIS

C.S.S.B. 475

By: Hancock

State Affairs

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The electric grid is a complex, interconnected network of generation, transmission, distribution, control, and communication technologies, which are a natural target for cyber and security attacks. Although the industry has already taken significant steps to secure this increasingly interconnected system, the threat of an attack on the electric grid and the risks of a widespread outage highlight the importance of developing effective policies to address these potential safety and security risks. As Texas is the only state in the contiguous United States with an electric grid fully within its borders, it is appropriate for Texas to be in the vanguard of addressing these security risks. C.S.S.B. 475 seeks to address these issues by establishing the Texas Electric Grid Security Council to facilitate the creation, aggregation, coordination, and dissemination of best practices for the electric industry.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.S.B. 475 amends the Utilities Code to establish the Texas Electric Grid Security Council as an advisory body to facilitate the creation, aggregation, coordination, and dissemination of best security practices for the electric industry. The bill sets out related legislative findings and provides for the council's composition, the designation of a presiding officer, the manner in which the council convenes, and the reimbursement of council members, who are not entitled to compensation. The bill authorizes a council member to apply for federal secret security clearance or interim security clearance and prohibits a member from accessing classified information or participating in a briefing or meeting involving classified information unless the member has a secret security clearance.

C.S.S.B. 475 requires the independent organization certified by the Public Utility Commission of Texas to perform certain functions relating to the market structure of the electric utility industry to do the following:

·       provide information and resources requested by the council;

·       maintain nonclassified information obtained or created by the council;

·       provide members of the council with access to the nonclassified information; and

·       retain the nonclassified information for five years after the date that the council obtains or creates the information.

C.S.S.B. 475 sets out certain entities with which the council may consult and coordinate in carrying out its functions and requires the council, on a request by the governor, the lieutenant governor, or the chair of the committee of the house of representatives or senate having jurisdiction over energy utility regulation, to issue to the requestor recommendations regarding specified topics relating to grid security. The bill authorizes the council to prepare a report outlining grid security response efforts that do not involve classified or highly sensitive, company-specific information and requires the council to deliver any such prepared report to the governor, lieutenant governor, and legislature on or before the December 1 immediately preceding a regular session of the legislature. The bill exempts the council's meetings and information obtained or created by the council from state open meetings law and state public information law requirements.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2019.

COMPARISON OF SENATE ENGROSSED AND SUBSTITUTE

While C.S.S.B. 475 may differ from the engrossed in minor or nonsubstantive ways, the following summarizes the substantial differences between the engrossed and committee substitute versions of the bill.

The substitute includes a provision requiring the certified independent organization to do the following:

·       maintain nonclassified information obtained or created by the Texas Electric Grid Security Council;

·       provide members of the council with access to that information; and

·       retain that information for five years after the date that the council obtains or creates the information.