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  By: Parker, Price, Frullo, Fallon, Krause, H.B. No. 787
      et al.
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the security of the electric grid.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  (a)  In this section:
               (1)  "Critical infrastructure" means electric utility
  facilities located in the ERCOT power region.  The term does not
  include power generation facilities.
               (2)  "Cybersecurity" means the activity, process,
  ability, capability, or state where information and communication
  systems and the information contained in those systems are
  protected from and defended against damage, unauthorized use,
  modification, or exploitation.
               (3)  "Electromagnetic pulse threat" means an
  electromagnetic pulse caused by intentional means, including an act
  of terrorism.
               (4)  "Electric utility" has the meaning assigned by
  Section 31.002, Utilities Code.
               (5)  "ERCOT" has the meaning assigned by Section
  31.002, Utilities Code.
               (6)  "ERCOT organization" means the independent
  organization certified under Section 39.151, Utilities Code, for
  the ERCOT region.
               (7) "Geomagnetic disturbance" means an event caused by
  the interaction of a cloud of charged particles produced by the
  sun's solar storms and the earth's magnetic field.
         
         (b)  The Electric Grid Security Advisory Committee is
  created.  The committee is composed of the following members:
               (1)  four members appointed by the governor to study
  electromagnetic pulse threats; and
               (2)  four members appointed by the governor to study
  cybersecurity.
         (c)  Each member of the committee must have professional
  experience or technical training in:
               (1)  cybersecurity;
               (2)  electromagnetic interference;
               (3)  electric power generation or transmission;
               (4)  electromagnetic pulse hardening;
               (5)  physical security and controls;
               (6)  space physics and weather;
               (7)  supervisory controls and data acquisition; or
               (8)  emergency preparedness.
         (d)  The governor shall designate a member of the committee
  to serve as presiding officer.
         (e)  The committee shall convene at the call of the presiding
  officer.
         (f)  The committee shall study critical infrastructure and
  its vulnerability to electromagnetic pulse, geomagnetic
  disturbance, and cybersecurity threats.  The study must:
               (1)  evaluate and summarize the current state of the
  electric grid and associated computer systems and networks;
               (2)  consider and assess the likelihood of potential
  security threats to the electric grid and associated computer
  systems and networks;
               (3)  assess whether further efforts are needed to
  secure the electric grid and associated computer systems and
  networks against damage, including the threat of electromagnetic
  pulse or other attacks and natural threats, including solar flares;
               (4)  recommend appropriate measures to secure the
  electric grid and associated computer systems and networks, taking
  into account the impact of the potential damage being addressed;
  and
               (5)  recommend one or more strategies to protect and
  prepare critical infrastructure in the ERCOT region against
  relevant threats and present the estimated costs associated with
  each strategy.
         (g)  The committee may use research and data on
  electromagnetic pulse threats and cybersecurity gathered by the
  United States Department of Defense, the United States Department
  of Energy, the United States Department of Homeland Security, and
  the Electric Power Research Institute.
         (h)  The committee may share its findings with any state
  agency it considers important to the security of the electric grid
  or associated computer systems or networks. To the extent allowed
  by law, a state agency with which the committee shares information
  is encouraged to implement any recommendations that the agency
  determines will improve the security of the state's electric grid
  or associated computer systems or networks.
         (i)  The ERCOT organization shall cooperate with the
  committee to provide any information and resources the committee
  considers important to the study.
         (j)  A member of the committee is not entitled to
  compensation but is entitled to reimbursement for the member's
  travel expenses as provided by Chapter 660, Government Code, and
  the General Appropriations Act.
         (k)  A vacancy on the task force shall be filled for the
  unexpired term in the same manner as the original appointment.
         (l)  The committee is not subject to Chapter 2110, Government
  Code.
         (m)  Not later than December 1, 2018, the committee shall
  prepare a report of its findings, including any recommendations for
  legislation resulting from the findings, and shall submit the
  report to the governor.
         (n)  The committee's work relates to sensitive matters of
  security. Notwithstanding any other law, the meetings, work, and
  findings of the committee are not subject to the requirements of
  Chapter 551 or 552, Government Code. Each member of the committee
  shall sign a nondisclosure agreement stating that the member will
  not disclose to the public any sensitive or identifiable
  information related to grid security measures or plans.
         (o)  This section is not intended to penalize electric
  providers in this state.  If deficiencies in the security of the
  electric grid in the ERCOT region are determined through the
  process established in this section and the legislature, in
  consultation with the governor, determines upgrades to the electric
  grid are necessary, the legislature shall determine whether
  upgrades will be funded by appropriating general revenue, through a
  ratepayer cost recovery mechanism, or by a combination of those
  methods.
         (p)  This section is not intended to prevent an electric
  utility, municipally owned utility, or electric cooperative from
  making prudent investments and reasonable and necessary
  expenditures to secure the electric grid and seeking recovery of
  associated costs as authorized by the Utilities Code.
         (q)  The committee is abolished and this section expires on
  December 31, 2018.
         SECTION 2.  Subchapter Z, Chapter 39, Utilities Code, is
  amended by adding Section 39.917 to read as follows:
         Sec. 39.917.  INFORMATION RELATED TO GRID SECURITY. The
  independent organization certified under Section 39.151 shall
  collect and compile information related to the security of the
  electric grid. The information is confidential and is not subject
  to disclosure under Chapter 552, Government Code.
         SECTION 3.  The governor shall appoint members to the
  Electric Grid Security Advisory Committee, as required by this Act,
  as soon as practicable after the effective date of this Act, but not
  later than the 120th day after the effective date of this Act.
         SECTION 4.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2017.