| 1 | 1 | | 85R3160 GRM-F |
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| 2 | 2 | | By: Parker H.B. No. 788 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to enhancing the security of the electric grid; making an |
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| 8 | 8 | | appropriation. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter Z, Chapter 39, Utilities Code, is |
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| 11 | 11 | | amended by adding Section 39.918 to read as follows: |
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| 12 | 12 | | Sec. 39.918. ELECTRIC GRID SECURITY PROGRAM. (a) In this |
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| 13 | 13 | | section, "committee" means the electric grid security advisory |
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| 14 | 14 | | committee. |
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| 15 | 15 | | (b) The commission shall establish a program to pay expenses |
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| 16 | 16 | | incurred to increase the security of the electric grid in ERCOT. |
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| 17 | 17 | | Eligible expenses of the program include: |
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| 18 | 18 | | (1) an audit related to security of the electric grid |
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| 19 | 19 | | and associated computer systems and networks conducted by: |
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| 20 | 20 | | (A) an independent security expert for a |
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| 21 | 21 | | transmission and distribution utility; |
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| 22 | 22 | | (B) an independent organization certified under |
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| 23 | 23 | | Section 39.151; |
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| 24 | 24 | | (C) an electric cooperative; |
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| 25 | 25 | | (D) a river authority; or |
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| 26 | 26 | | (E) a municipally owned utility operating in |
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| 27 | 27 | | ERCOT; |
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| 28 | 28 | | (2) reimbursement of investments or expenses made to |
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| 29 | 29 | | implement measures recommended by the committee or to implement |
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| 30 | 30 | | recommendations made in an audit described by Subdivision (1); |
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| 31 | 31 | | (3) an expense incurred by the committee related to |
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| 32 | 32 | | the retention of consultants or other necessary experts to assist |
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| 33 | 33 | | the committee in performing the committee's duties; |
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| 34 | 34 | | (4) reimbursement to a member of the committee for |
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| 35 | 35 | | travel expenses; and |
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| 36 | 36 | | (5) reimbursement of costs incurred by the commission |
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| 37 | 37 | | in administering this section. |
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| 38 | 38 | | (c) Entities other than the commission seeking |
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| 39 | 39 | | reimbursement from the program must provide adequate documentation |
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| 40 | 40 | | to the committee to demonstrate that the expense is eligible for |
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| 41 | 41 | | reimbursement under this section. The commission shall authorize |
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| 42 | 42 | | reimbursement of eligible expenses not later than five business |
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| 43 | 43 | | days after receipt of a certification from the committee that the |
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| 44 | 44 | | expenditures are eligible under this section. |
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| 45 | 45 | | (d) Each quarter, the commission shall report the total |
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| 46 | 46 | | amount paid for each category of expenses listed in Subsection (b) |
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| 47 | 47 | | to the governor, the lieutenant governor, and the speaker of the |
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| 48 | 48 | | house of representatives. |
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| 49 | 49 | | (e) This section does not prevent any recovery authorized |
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| 50 | 50 | | under this title for reasonable and necessary costs incurred in |
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| 51 | 51 | | relation to ongoing efforts to secure electric facilities from |
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| 52 | 52 | | physical and cyber security threats by: |
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| 53 | 53 | | (1) a transmission and distribution utility; |
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| 54 | 54 | | (2) an independent organization certified under |
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| 55 | 55 | | Section 39.151; |
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| 56 | 56 | | (3) an electric cooperative; |
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| 57 | 57 | | (4) a river authority; or |
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| 58 | 58 | | (5) a municipally owned utility operating in ERCOT. |
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| 59 | 59 | | (f) Notwithstanding Chapter 551, Government Code, the |
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| 60 | 60 | | commission may conduct a closed meeting, as defined by Section |
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| 61 | 61 | | 551.001, Government Code, to discuss the findings of the committee, |
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| 62 | 62 | | programs required by this section, and other issues related to the |
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| 63 | 63 | | security of the electric grid and associated computer systems and |
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| 64 | 64 | | networks. |
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| 65 | 65 | | SECTION 2. In addition to other appropriations made by the |
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| 66 | 66 | | 85th Legislature, Regular Session, 2017, the amount of $25 million |
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| 67 | 67 | | is appropriated from the general revenue fund to the Public Utility |
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| 68 | 68 | | Commission of Texas for the purpose of implementing Section 39.918, |
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| 69 | 69 | | Utilities Code, as added by this Act, for the period beginning on |
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| 70 | 70 | | the effective date of this Act and ending on the second anniversary |
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| 71 | 71 | | of that date. |
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| 72 | 72 | | SECTION 3. The implementation of the changes in law made by |
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| 73 | 73 | | this Act is contingent on legislation that creates the electric |
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| 74 | 74 | | grid security advisory committee being enacted and becoming law. |
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| 75 | 75 | | If that legislation is not enacted and does not become law, this Act |
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| 76 | 76 | | has no effect. |
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| 77 | 77 | | SECTION 4. This Act takes effect immediately if it receives |
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| 78 | 78 | | a vote of two-thirds of all the members elected to each house, as |
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| 79 | 79 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 80 | 80 | | Act does not receive the vote necessary for immediate effect, this |
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| 81 | 81 | | Act takes effect September 1, 2017. |
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