Bill Text: TX HB2591 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to a cybersecurity monitor for certain electric utilities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-03-11 - Referred to State Affairs [HB2591 Detail]
Download: Texas-2019-HB2591-Introduced.html
86R7104 GRM-F | ||
By: Holland | H.B. No. 2591 |
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relating to a cybersecurity monitor for certain electric utilities. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter E, Chapter 36, Utilities Code, is | ||
amended by adding Section 36.213 to read as follows: | ||
Sec. 36.213. ADJUSTMENT FOR CYBERSECURITY MONITOR COSTS FOR | ||
CERTAIN UTILITIES. (a) This section does not apply to an electric | ||
utility that operates solely outside of ERCOT and has not elected to | ||
participate in the cybersecurity monitor program under Section | ||
39.1516. | ||
(b) The commission, on its own motion or on the petition of | ||
an electric utility, shall allow the electric utility to recover | ||
reasonable and necessary costs incurred in connection with | ||
activities under Section 39.1516. | ||
SECTION 2. Section 39.002, Utilities Code, is amended to | ||
read as follows: | ||
Sec. 39.002. APPLICABILITY. This chapter, other than | ||
Sections 39.1516, 39.155, 39.157(e), 39.203, [ |
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39.9051, 39.9052, and 39.914(e), does not apply to a municipally | ||
owned utility or an electric cooperative. Sections 39.157(e), | ||
39.203, and 39.904, however, apply only to a municipally owned | ||
utility or an electric cooperative that is offering customer | ||
choice. If there is a conflict between the specific provisions of | ||
this chapter and any other provisions of this title, except for | ||
Chapters 40 and 41, the provisions of this chapter control. | ||
SECTION 3. Subchapter D, Chapter 39, Utilities Code, is | ||
amended by adding Section 39.1516 to read as follows: | ||
Sec. 39.1516. CYBERSECURITY MONITOR. (a) In this section, | ||
"monitored utility" means: | ||
(1) a transmission and distribution utility; | ||
(2) a corporation described in Section 32.053; | ||
(3) a municipally owned utility or electric | ||
cooperative that owns or operates equipment or facilities in the | ||
ERCOT power region to transmit electricity at 60 or more kilovolts; | ||
or | ||
(4) an electric utility, municipally owned utility, or | ||
electric cooperative that operates solely outside the ERCOT power | ||
region that has elected to participate under Subsection (d). | ||
(b) The commission and the independent organization | ||
certified under Section 39.151 shall contract with an entity | ||
selected by the commission to act as the commission's cybersecurity | ||
monitor to: | ||
(1) manage a comprehensive cybersecurity outreach | ||
program for monitored utilities; | ||
(2) meet regularly with monitored utilities to discuss | ||
emerging threats, best business practices, and training | ||
opportunities; | ||
(3) review self-assessments by monitored utilities of | ||
cybersecurity efforts; | ||
(4) research and develop best business practices | ||
regarding cybersecurity; and | ||
(5) report to the commission on monitored utility | ||
cybersecurity preparedness. | ||
(c) The independent organization certified under Section | ||
39.151 shall provide to the cybersecurity monitor any access, | ||
information, support, and cooperation that the commission | ||
determines is necessary for the monitor to perform the functions | ||
described by Subsection (b). The independent organization shall | ||
use funds from the fee authorized by Section 39.151(e) to pay for | ||
the cybersecurity monitor's activities. | ||
(d) An electric utility, municipally owned utility, or | ||
electric cooperative that operates solely outside the ERCOT power | ||
region may elect to participate in the cybersecurity monitor | ||
program or to discontinue participation. The commission shall | ||
adopt rules establishing: | ||
(1) procedures for an electric utility, municipally | ||
owned utility, or electric cooperative to notify the commission, | ||
the independent organization certified under Section 39.151, and | ||
the cybersecurity monitor that the utility or cooperative elects to | ||
participate or to discontinue participation; and | ||
(2) a mechanism to require an electric utility, | ||
municipally owned utility, or electric cooperative that elects to | ||
participate to contribute to the costs incurred by the independent | ||
organization under this section. | ||
(e) The cybersecurity monitor shall operate under the | ||
supervision and oversight of the commission. | ||
(f) The commission shall adopt rules as necessary to | ||
implement this section and may enforce the provisions of this | ||
section in the manner provided by this title. This section does not | ||
grant enforcement authority to the cybersecurity monitor or | ||
authorize the commission to delegate the commission's enforcement | ||
authority to the cybersecurity monitor. This section does not | ||
grant enforcement authority to the commission beyond authority | ||
explicitly provided for in this title. | ||
(g) The staff of the cybersecurity monitor may communicate | ||
with commission staff about any cybersecurity information without | ||
restriction. Commission staff shall maintain the confidentiality | ||
of the cybersecurity information. Notwithstanding any other law, | ||
commission staff may not disclose information obtained under this | ||
section in an open meeting or through a response to a public | ||
information request. | ||
(h) Information written, produced, collected, assembled, or | ||
maintained under Subsection (b), (c), or (g) is confidential and | ||
not subject to disclosure under Chapter 552, Government Code. A | ||
governmental body is not required to conduct an open meeting under | ||
Chapter 551, Government Code, to deliberate a matter described by | ||
Subsection (b), (c), or (g). | ||
SECTION 4. Section 39.402(a), Utilities Code, is amended to | ||
read as follows: | ||
(a) Until the date on which an electric utility subject to | ||
this subchapter is authorized by the commission to implement | ||
customer choice, the rates of the utility shall be regulated under | ||
traditional cost of service regulation and the utility is subject | ||
to all applicable regulatory authority prescribed by this subtitle | ||
and Subtitle A, including Chapters 14, 32, 33, 36, and 37. Until | ||
the date on which an electric utility subject to this subchapter | ||
implements customer choice, the provisions of this chapter, other | ||
than this subchapter, Sections 39.1516, 39.904, and 39.905, and the | ||
provisions relating to the duty to obtain a permit from the Texas | ||
Commission on Environmental Quality for an electric generating | ||
facility and to reduce emissions from an electric generating | ||
facility, shall not apply to that utility. That portion of any | ||
commission order entered before September 1, 2001, to comply with | ||
this subchapter shall be null and void. | ||
SECTION 5. Section 39.452(d), Utilities Code, is amended to | ||
read as follows: | ||
(d) Until the date on which an electric utility subject to | ||
this subchapter implements customer choice: | ||
(1) the provisions of this chapter do not apply to that | ||
electric utility, other than this subchapter, Sections 39.1516, | ||
39.904, and 39.905, the provisions relating to the duty to obtain a | ||
permit from the Texas Commission on Environmental Quality for an | ||
electric generating facility and to reduce emissions from an | ||
electric generating facility, and the provisions of Subchapter G | ||
that pertain to the recovery and securitization of hurricane | ||
reconstruction costs authorized by Sections 39.458-39.463; and | ||
(2) the electric utility is not subject to a rate | ||
freeze and, subject to the limitation provided by Subsection (b), | ||
may file for rate changes under Chapter 36 and for approval of one | ||
or more of the rate rider mechanisms authorized by Sections 39.454 | ||
and 39.455. | ||
SECTION 6. Section 39.502(b), Utilities Code, is amended to | ||
read as follows: | ||
(b) Until the date on which an electric utility subject to | ||
this subchapter implements customer choice, the provisions of this | ||
chapter, other than this subchapter and Sections 39.1516, 39.904, | ||
and 39.905, do not apply to that utility. | ||
SECTION 7. Section 39.552(b), Utilities Code, is amended to | ||
read as follows: | ||
(b) Until the date on which an electric utility subject to | ||
this subchapter implements customer choice, the provisions of this | ||
chapter, other than this subchapter and Sections 39.1516, 39.904, | ||
and 39.905, do not apply to that utility. | ||
SECTION 8. Section 40.001(b), Utilities Code, is amended to | ||
read as follows: | ||
(b) Except as specifically provided in this subsection, | ||
Chapter 39 does not apply to a river authority operating a steam | ||
generating plant on or before January 1, 1999, or a corporation | ||
authorized by Chapter 152, Water Code, or Section 32.053. A river | ||
authority operating a steam generating plant on or before January | ||
1, 1999, is subject to Sections 39.051(a)-(c), 39.108, 39.1516, | ||
39.155, 39.157(e), and 39.203. | ||
SECTION 9. Section 40.004, Utilities Code, is amended to | ||
read as follows: | ||
Sec. 40.004. JURISDICTION OF COMMISSION. Except as | ||
specifically otherwise provided in this chapter, the commission has | ||
jurisdiction over municipally owned utilities only for the | ||
following purposes: | ||
(1) to regulate wholesale transmission rates and | ||
service, including terms of access, to the extent provided by | ||
Subchapter A, Chapter 35; | ||
(2) to regulate certification of retail service areas | ||
to the extent provided by Chapter 37; | ||
(3) to regulate rates on appeal under Subchapters D | ||
and E, Chapter 33, subject to Section 40.051(c); | ||
(4) to establish a code of conduct as provided by | ||
Section 39.157(e) applicable to anticompetitive activities and to | ||
affiliate activities limited to structurally unbundled affiliates | ||
of municipally owned utilities, subject to Section 40.054; | ||
(5) to establish terms and conditions for open access | ||
to transmission and distribution facilities for municipally owned | ||
utilities providing customer choice, as provided by Section 39.203; | ||
(6) [ |
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renewable energy credits program under Section 39.904(b) and the | ||
natural gas energy credits program under Section 39.9044(b); [ |
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(7) to require reports of municipally owned utility | ||
operations only to the extent necessary to: | ||
(A) enable the commission to determine the | ||
aggregate load and energy requirements of the state and the | ||
resources available to serve that load; or | ||
(B) enable the commission to determine | ||
information relating to market power as provided by Section 39.155; | ||
and | ||
(8) to evaluate and monitor the cybersecurity | ||
preparedness of a municipally owned utility described by Section | ||
39.1516(a)(3) or (4). | ||
SECTION 10. Section 41.004, Utilities Code, is amended to | ||
read as follows: | ||
Sec. 41.004. JURISDICTION OF COMMISSION. Except as | ||
specifically provided otherwise in this chapter, the commission has | ||
jurisdiction over electric cooperatives only as follows: | ||
(1) to regulate wholesale transmission rates and | ||
service, including terms of access, to the extent provided in | ||
Subchapter A, Chapter 35; | ||
(2) to regulate certification to the extent provided | ||
in Chapter 37; | ||
(3) to establish a code of conduct as provided in | ||
Section 39.157(e) subject to Section 41.054; | ||
(4) to establish terms and conditions, but not rates, | ||
for open access to distribution facilities for electric | ||
cooperatives providing customer choice, as provided in Section | ||
39.203; [ |
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(5) to require reports of electric cooperative | ||
operations only to the extent necessary to: | ||
(A) ensure the public safety; | ||
(B) enable the commission to satisfy its | ||
responsibilities relating to electric cooperatives under this | ||
chapter; | ||
(C) enable the commission to determine the | ||
aggregate electric load and energy requirements in the state and | ||
the resources available to serve that load; or | ||
(D) enable the commission to determine | ||
information relating to market power as provided in Section 39.155; | ||
and | ||
(6) to evaluate and monitor the cybersecurity | ||
preparedness of an electric cooperative described by Section | ||
39.1516(a)(3) or (4). | ||
SECTION 11. To the extent of any conflict, this Act prevails | ||
over another Act of the 86th Legislature, Regular Session, 2019, | ||
relating to nonsubstantive additions to and corrections in enacted | ||
codes. | ||
SECTION 12. This Act takes effect September 1, 2019. |