Texas House Bill HB3377

Texas 2019 - 86th Regular

Caption

Relating to a cybersecurity monitor for certain electric utilities.

Impact

The bill is expected to have significant implications for the regulation of electric utilities in Texas. By creating a monitoring framework, HB3377 seeks to enhance safety protocols and response strategies in light of increasing cyber threats targeting critical infrastructure. The legislation allows participating utilities to recover necessary costs associated with cybersecurity measures, which may alleviate financial burdens as they enhance their defenses. However, municipalities and cooperatives that operate outside ERCOT without opting into the program will not be subject to its provisions, demonstrating a selective application depending on the operational jurisdiction of the utilities.

Summary

House Bill 3377 establishes a framework for implementing a cybersecurity monitor for certain electric utilities in Texas. The legislation aims to enhance the cybersecurity preparedness of utilities, specifically targeting those within the Electric Reliability Council of Texas (ERCOT) power region. The bill mandates that the Texas Commission contracts with an entity to act as the cybersecurity monitor, which will be responsible for overseeing a comprehensive cybersecurity outreach program for designated utilities. This includes managing communications on emerging threats, best practices, and reviewing utilities' self-assessments of their cybersecurity efforts.

Contention

One notable point of contention surrounding HB3377 revolves around the balance of state versus local control. While proponents argue that centralized regulations can lead to greater overall security and efficiency, critics may express concerns that this may undermine local autonomy or impose undue compliance costs on smaller municipalities and cooperatives. Another discussion point is the confidentiality of the cybersecurity information established by the bill, as it restricts disclosure of data related to the cybersecurity practices of monitored utilities, which could lead to debates on transparency and public access to information regarding utility safety and security measures.