REFERENCE TITLE: grid security; cybersecurity; reviews; commission State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SB 1501 Introduced by Senator Farnsworth An Act amending title 40, chapter 2, article 6.2, Arizona Revised Statutes, by adding section 40-360.14; relating to the power plant and transmission line siting committee. (TEXT OF BILL BEGINS ON NEXT PAGE) REFERENCE TITLE: grid security; cybersecurity; reviews; commission State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SB 1501 Introduced by Senator Farnsworth REFERENCE TITLE: grid security; cybersecurity; reviews; commission State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SB 1501 Introduced by Senator Farnsworth An Act amending title 40, chapter 2, article 6.2, Arizona Revised Statutes, by adding section 40-360.14; relating to the power plant and transmission line siting committee. (TEXT OF BILL BEGINS ON NEXT PAGE) Be it enacted by the Legislature of the State of Arizona: Section 1. Title 40, chapter 2, article 6.2, Arizona Revised Statutes, is amended by adding section 40-360.14, to read: START_STATUTE40-360.14. Grid security review; plan; cybersecurity notwithstanding section 40-360.02, The commission shall conduct an annual grid security review of a plant. in conducting the review, the commission shall: 1. research and evaluate the generation and grid management technologies that will accommodate a two-way flow of electricity and that protect against a physical attack and a cyberattack. 2. assess emerging technologies, including distributed energy resources, microgrids and new technology battery storage. 3. EVALUATE new information technology systems and how protections are implement, as required. 4. require investor-owned utilities to rectify deficiencies that were identified in the grid security review and develop security plans that evaluate and consider the time and costs that are associated with implementing changes. the security plans shall include potential funding sources from private capital investment for energy development. This paragraph does not apply to electric cooperatives and public power entities. 5. Every two years, review the cybersecurity and grid protection protocols. Sec. 2. Legislative findings and intent It is the policy of this state to: 1. Diversify access to energy generation assets that reduce costs and ensure additional grid reliability. 2. Allow retail electric customers to obtain direct access to energy suppliers. 3. Authorize energy suppliers to sell energy directly to customers with a choice of energy plans, including options for lower costs, fixed rates, time of use pricing and rate plans. 4. Ensure that regulations for energy generation are limited and that competition provides a safe and affordable service to customers and is available at current levels of reliability for residents and businesses that are served by investor-owned utilities in this state. 5. Ensure that investor-owned utilities continue to maintain and expand transmission and distribution facilities and allow access to electricity generated by third-party suppliers for retail electric customers. 6. Direct the commission to gather information regarding various retail electric choice models in this state where both full and limited retail electric choice has been authorized through state legislation. END_STATUTE Be it enacted by the Legislature of the State of Arizona: Section 1. Title 40, chapter 2, article 6.2, Arizona Revised Statutes, is amended by adding section 40-360.14, to read: START_STATUTE40-360.14. Grid security review; plan; cybersecurity notwithstanding section 40-360.02, The commission shall conduct an annual grid security review of a plant. in conducting the review, the commission shall: 1. research and evaluate the generation and grid management technologies that will accommodate a two-way flow of electricity and that protect against a physical attack and a cyberattack. 2. assess emerging technologies, including distributed energy resources, microgrids and new technology battery storage. 3. EVALUATE new information technology systems and how protections are implement, as required. 4. require investor-owned utilities to rectify deficiencies that were identified in the grid security review and develop security plans that evaluate and consider the time and costs that are associated with implementing changes. the security plans shall include potential funding sources from private capital investment for energy development. This paragraph does not apply to electric cooperatives and public power entities. 5. Every two years, review the cybersecurity and grid protection protocols. Sec. 2. Legislative findings and intent It is the policy of this state to: 1. Diversify access to energy generation assets that reduce costs and ensure additional grid reliability. 2. Allow retail electric customers to obtain direct access to energy suppliers. 3. Authorize energy suppliers to sell energy directly to customers with a choice of energy plans, including options for lower costs, fixed rates, time of use pricing and rate plans. 4. Ensure that regulations for energy generation are limited and that competition provides a safe and affordable service to customers and is available at current levels of reliability for residents and businesses that are served by investor-owned utilities in this state. 5. Ensure that investor-owned utilities continue to maintain and expand transmission and distribution facilities and allow access to electricity generated by third-party suppliers for retail electric customers. 6. Direct the commission to gather information regarding various retail electric choice models in this state where both full and limited retail electric choice has been authorized through state legislation. END_STATUTE