Texas 2019 - 86th Regular

Texas House Bill HB3377 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R7104 GRM-F
2	2	By: Hernandez H.B. No. 3377
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a cybersecurity monitor for certain electric utilities.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subchapter E, Chapter 36, Utilities Code, is
10	10	amended by adding Section 36.213 to read as follows:
11	11	Sec. 36.213. ADJUSTMENT FOR CYBERSECURITY MONITOR COSTS FOR
12	12	CERTAIN UTILITIES. (a) This section does not apply to an electric
13	13	utility that operates solely outside of ERCOT and has not elected to
14	14	participate in the cybersecurity monitor program under Section
15	15	39.1516.
16	16	(b) The commission, on its own motion or on the petition of
17	17	an electric utility, shall allow the electric utility to recover
18	18	reasonable and necessary costs incurred in connection with
19	19	activities under Section 39.1516.
20	20	SECTION 2. Section 39.002, Utilities Code, is amended to
21	21	read as follows:
22	22	Sec. 39.002. APPLICABILITY. This chapter, other than
23	23	Sections 39.1516, 39.155, 39.157(e), 39.203, [39.903,] 39.904,
24	24	39.9051, 39.9052, and 39.914(e), does not apply to a municipally
25	25	owned utility or an electric cooperative. Sections 39.157(e),
26	26	39.203, and 39.904, however, apply only to a municipally owned
27	27	utility or an electric cooperative that is offering customer
28	28	choice. If there is a conflict between the specific provisions of
29	29	this chapter and any other provisions of this title, except for
30	30	Chapters 40 and 41, the provisions of this chapter control.
31	31	SECTION 3. Subchapter D, Chapter 39, Utilities Code, is
32	32	amended by adding Section 39.1516 to read as follows:
33	33	Sec. 39.1516. CYBERSECURITY MONITOR. (a) In this section,
34	34	"monitored utility" means:
35	35	(1) a transmission and distribution utility;
36	36	(2) a corporation described in Section 32.053;
37	37	(3) a municipally owned utility or electric
38	38	cooperative that owns or operates equipment or facilities in the
39	39	ERCOT power region to transmit electricity at 60 or more kilovolts;
40	40	or
41	41	(4) an electric utility, municipally owned utility, or
42	42	electric cooperative that operates solely outside the ERCOT power
43	43	region that has elected to participate under Subsection (d).
44	44	(b) The commission and the independent organization
45	45	certified under Section 39.151 shall contract with an entity
46	46	selected by the commission to act as the commission's cybersecurity
47	47	monitor to:
48	48	(1) manage a comprehensive cybersecurity outreach
49	49	program for monitored utilities;
50	50	(2) meet regularly with monitored utilities to discuss
51	51	emerging threats, best business practices, and training
52	52	opportunities;
53	53	(3) review self-assessments by monitored utilities of
54	54	cybersecurity efforts;
55	55	(4) research and develop best business practices
56	56	regarding cybersecurity; and
57	57	(5) report to the commission on monitored utility
58	58	cybersecurity preparedness.
59	59	(c) The independent organization certified under Section
60	60	39.151 shall provide to the cybersecurity monitor any access,
61	61	information, support, and cooperation that the commission
62	62	determines is necessary for the monitor to perform the functions
63	63	described by Subsection (b). The independent organization shall
64	64	use funds from the fee authorized by Section 39.151(e) to pay for
65	65	the cybersecurity monitor's activities.
66	66	(d) An electric utility, municipally owned utility, or
67	67	electric cooperative that operates solely outside the ERCOT power
68	68	region may elect to participate in the cybersecurity monitor
69	69	program or to discontinue participation. The commission shall
70	70	adopt rules establishing:
71	71	(1) procedures for an electric utility, municipally
72	72	owned utility, or electric cooperative to notify the commission,
73	73	the independent organization certified under Section 39.151, and
74	74	the cybersecurity monitor that the utility or cooperative elects to
75	75	participate or to discontinue participation; and
76	76	(2) a mechanism to require an electric utility,
77	77	municipally owned utility, or electric cooperative that elects to
78	78	participate to contribute to the costs incurred by the independent
79	79	organization under this section.
80	80	(e) The cybersecurity monitor shall operate under the
81	81	supervision and oversight of the commission.
82	82	(f) The commission shall adopt rules as necessary to
83	83	implement this section and may enforce the provisions of this
84	84	section in the manner provided by this title. This section does not
85	85	grant enforcement authority to the cybersecurity monitor or
86	86	authorize the commission to delegate the commission's enforcement
87	87	authority to the cybersecurity monitor. This section does not
88	88	grant enforcement authority to the commission beyond authority
89	89	explicitly provided for in this title.
90	90	(g) The staff of the cybersecurity monitor may communicate
91	91	with commission staff about any cybersecurity information without
92	92	restriction. Commission staff shall maintain the confidentiality
93	93	of the cybersecurity information. Notwithstanding any other law,
94	94	commission staff may not disclose information obtained under this
95	95	section in an open meeting or through a response to a public
96	96	information request.
97	97	(h) Information written, produced, collected, assembled, or
98	98	maintained under Subsection (b), (c), or (g) is confidential and
99	99	not subject to disclosure under Chapter 552, Government Code. A
100	100	governmental body is not required to conduct an open meeting under
101	101	Chapter 551, Government Code, to deliberate a matter described by
102	102	Subsection (b), (c), or (g).
103	103	SECTION 4. Section 39.402(a), Utilities Code, is amended to
104	104	read as follows:
105	105	(a) Until the date on which an electric utility subject to
106	106	this subchapter is authorized by the commission to implement
107	107	customer choice, the rates of the utility shall be regulated under
108	108	traditional cost of service regulation and the utility is subject
109	109	to all applicable regulatory authority prescribed by this subtitle
110	110	and Subtitle A, including Chapters 14, 32, 33, 36, and 37. Until
111	111	the date on which an electric utility subject to this subchapter
112	112	implements customer choice, the provisions of this chapter, other
113	113	than this subchapter, Sections 39.1516, 39.904, and 39.905, and the
114	114	provisions relating to the duty to obtain a permit from the Texas
115	115	Commission on Environmental Quality for an electric generating
116	116	facility and to reduce emissions from an electric generating
117	117	facility, shall not apply to that utility. That portion of any
118	118	commission order entered before September 1, 2001, to comply with
119	119	this subchapter shall be null and void.
120	120	SECTION 5. Section 39.452(d), Utilities Code, is amended to
121	121	read as follows:
122	122	(d) Until the date on which an electric utility subject to
123	123	this subchapter implements customer choice:
124	124	(1) the provisions of this chapter do not apply to that
125	125	electric utility, other than this subchapter, Sections 39.1516,
126	126	39.904, and 39.905, the provisions relating to the duty to obtain a
127	127	permit from the Texas Commission on Environmental Quality for an
128	128	electric generating facility and to reduce emissions from an
129	129	electric generating facility, and the provisions of Subchapter G
130	130	that pertain to the recovery and securitization of hurricane
131	131	reconstruction costs authorized by Sections 39.458-39.463; and
132	132	(2) the electric utility is not subject to a rate
133	133	freeze and, subject to the limitation provided by Subsection (b),
134	134	may file for rate changes under Chapter 36 and for approval of one
135	135	or more of the rate rider mechanisms authorized by Sections 39.454
136	136	and 39.455.
137	137	SECTION 6. Section 39.502(b), Utilities Code, is amended to
138	138	read as follows:
139	139	(b) Until the date on which an electric utility subject to
140	140	this subchapter implements customer choice, the provisions of this
141	141	chapter, other than this subchapter and Sections 39.1516, 39.904,
142	142	and 39.905, do not apply to that utility.
143	143	SECTION 7. Section 39.552(b), Utilities Code, is amended to
144	144	read as follows:
145	145	(b) Until the date on which an electric utility subject to
146	146	this subchapter implements customer choice, the provisions of this
147	147	chapter, other than this subchapter and Sections 39.1516, 39.904,
148	148	and 39.905, do not apply to that utility.
149	149	SECTION 8. Section 40.001(b), Utilities Code, is amended to
150	150	read as follows:
151	151	(b) Except as specifically provided in this subsection,
152	152	Chapter 39 does not apply to a river authority operating a steam
153	153	generating plant on or before January 1, 1999, or a corporation
154	154	authorized by Chapter 152, Water Code, or Section 32.053. A river
155	155	authority operating a steam generating plant on or before January
156	156	1, 1999, is subject to Sections 39.051(a)-(c), 39.108, 39.1516,
157	157	39.155, 39.157(e), and 39.203.
158	158	SECTION 9. Section 40.004, Utilities Code, is amended to
159	159	read as follows:
160	160	Sec. 40.004. JURISDICTION OF COMMISSION. Except as
161	161	specifically otherwise provided in this chapter, the commission has
162	162	jurisdiction over municipally owned utilities only for the
163	163	following purposes:
164	164	(1) to regulate wholesale transmission rates and
165	165	service, including terms of access, to the extent provided by
166	166	Subchapter A, Chapter 35;
167	167	(2) to regulate certification of retail service areas
168	168	to the extent provided by Chapter 37;
169	169	(3) to regulate rates on appeal under Subchapters D
170	170	and E, Chapter 33, subject to Section 40.051(c);
171	171	(4) to establish a code of conduct as provided by
172	172	Section 39.157(e) applicable to anticompetitive activities and to
173	173	affiliate activities limited to structurally unbundled affiliates
174	174	of municipally owned utilities, subject to Section 40.054;
175	175	(5) to establish terms and conditions for open access
176	176	to transmission and distribution facilities for municipally owned
177	177	utilities providing customer choice, as provided by Section 39.203;
178	178	(6) [to require collection of the nonbypassable fee
179	179	established under Section 39.903(b) and] to administer the
180	180	renewable energy credits program under Section 39.904(b) and the
181	181	natural gas energy credits program under Section 39.9044(b); [and]
182	182	(7) to require reports of municipally owned utility
183	183	operations only to the extent necessary to:
184	184	(A) enable the commission to determine the
185	185	aggregate load and energy requirements of the state and the
186	186	resources available to serve that load; or
187	187	(B) enable the commission to determine
188	188	information relating to market power as provided by Section 39.155;
189	189	and
190	190	(8) to evaluate and monitor the cybersecurity
191	191	preparedness of a municipally owned utility described by Section
192	192	39.1516(a)(3) or (4).
193	193	SECTION 10. Section 41.004, Utilities Code, is amended to
194	194	read as follows:
195	195	Sec. 41.004. JURISDICTION OF COMMISSION. Except as
196	196	specifically provided otherwise in this chapter, the commission has
197	197	jurisdiction over electric cooperatives only as follows:
198	198	(1) to regulate wholesale transmission rates and
199	199	service, including terms of access, to the extent provided in
200	200	Subchapter A, Chapter 35;
201	201	(2) to regulate certification to the extent provided
202	202	in Chapter 37;
203	203	(3) to establish a code of conduct as provided in
204	204	Section 39.157(e) subject to Section 41.054;
205	205	(4) to establish terms and conditions, but not rates,
206	206	for open access to distribution facilities for electric
207	207	cooperatives providing customer choice, as provided in Section
208	208	39.203; [and]
209	209	(5) to require reports of electric cooperative
210	210	operations only to the extent necessary to:
211	211	(A) ensure the public safety;
212	212	(B) enable the commission to satisfy its
213	213	responsibilities relating to electric cooperatives under this
214	214	chapter;
215	215	(C) enable the commission to determine the
216	216	aggregate electric load and energy requirements in the state and
217	217	the resources available to serve that load; or
218	218	(D) enable the commission to determine
219	219	information relating to market power as provided in Section 39.155;
220	220	and
221	221	(6) to evaluate and monitor the cybersecurity
222	222	preparedness of an electric cooperative described by Section
223	223	39.1516(a)(3) or (4).
224	224	SECTION 11. To the extent of any conflict, this Act prevails
225	225	over another Act of the 86th Legislature, Regular Session, 2019,
226	226	relating to nonsubstantive additions to and corrections in enacted
227	227	codes.
228	228	SECTION 12. This Act takes effect September 1, 2019.