85R3160 GRM-F     By: Parker H.B. No. 788       A BILL TO BE ENTITLED   AN ACT   relating to enhancing the security of the electric grid; making an   appropriation.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter Z, Chapter 39, Utilities Code, is   amended by adding Section 39.918 to read as follows:          Sec. 39.918.  ELECTRIC GRID SECURITY PROGRAM. (a) In this   section, "committee" means the electric grid security advisory   committee.          (b)  The commission shall establish a program to pay expenses   incurred to increase the security of the electric grid in ERCOT.   Eligible expenses of the program include:                (1)  an audit related to security of the electric grid   and associated computer systems and networks conducted by:                      (A)  an independent security expert for a   transmission and distribution utility;                      (B)  an independent organization certified under   Section 39.151;                       (C)  an electric cooperative;                      (D)  a river authority; or                      (E)  a municipally owned utility operating in   ERCOT;                (2)  reimbursement of investments or expenses made to   implement measures recommended by the committee or to implement   recommendations made in an audit described by Subdivision (1);                (3)  an expense incurred by the committee related to   the retention of consultants or other necessary experts to assist   the committee in performing the committee's duties;                (4)  reimbursement to a member of the committee for   travel expenses; and                (5)  reimbursement of costs incurred by the commission   in administering this section.          (c)  Entities other than the commission seeking   reimbursement from the program must provide adequate documentation   to the committee to demonstrate that the expense is eligible for   reimbursement under this section. The commission shall authorize   reimbursement of eligible expenses not later than five business   days after receipt of a certification from the committee that the   expenditures are eligible under this section.          (d)  Each quarter, the commission shall report the total   amount paid for each category of expenses listed in Subsection (b)   to the governor, the lieutenant governor, and the speaker of the   house of representatives.           (e)  This section does not prevent any recovery authorized   under this title for reasonable and necessary costs incurred in   relation to ongoing efforts to secure electric facilities from   physical and cyber security threats by:                 (1)  a transmission and distribution utility;                (2)  an independent organization certified under   Section 39.151;                 (3)  an electric cooperative;                (4)  a river authority; or                (5)  a municipally owned utility operating in ERCOT.          (f)  Notwithstanding Chapter 551, Government Code, the   commission may conduct a closed meeting, as defined by Section   551.001, Government Code, to discuss the findings of the committee,   programs required by this section, and other issues related to the   security of the electric grid and associated computer systems and   networks.          SECTION 2.  In addition to other appropriations made by the   85th Legislature, Regular Session, 2017, the amount of $25 million   is appropriated from the general revenue fund to the Public Utility   Commission of Texas for the purpose of implementing Section 39.918,   Utilities Code, as added by this Act, for the period beginning on   the effective date of this Act and ending on the second anniversary   of that date.          SECTION 3.  The implementation of the changes in law made by   this Act is contingent on legislation that creates the electric   grid security advisory committee being enacted and becoming law.   If that legislation is not enacted and does not become law, this Act   has no effect.          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.