ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

Senate: NR DPA 5-2-1-0 | 3rd read 17-11-2-0-0
House: NREW DP 5-4-0-1 | 3rd read 31-25-4-0

Final Read: 18-12-0-0

☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal Note


SB1501: grid security; cybersecurity; reviews; commission

Sponsor: Senator Farnsworth, LD 10

Vetoed by the Governor

Overview

Instructs the Arizona Corporation Commission (Commission) to conduct grid security reviews that will evaluate the technologies and securities of the grid system.

History

The Commission is a statewide agency and public utility commission that is responsible for ensuring safe, reliable and affordable utility services. The Commission regulates investor-owned or privately-owned utilities that provide utility services (ACC).

The Commission's Power Plant and Transmission Line Siting Committee (Committee) has jurisdiction over proposed electrical generating plants and above ground transmission lines that meet certain criteria. When a utility plans to build one of these facilities it must apply for a Certificate of Environmental Compatibility (CEC) and after review of designated criteria, public hearings and a vote by the Committee the utility may be granted the CEC for their proposed facility. The plans are reviewed biennially by the commission and the commission then issues a written decision regarding the functionality of the facility (A.R.S. Title 40, Chapter 2, article 6.2).

Generation, transmission and distribution are the main functions of the grid which provide power to residents of the state of Arizona. Utility owners and operators are often the entities responsible for improvements that help secure electricity grids (DOE).

Provisions

1.   Requires the Commission to conduct a grid security review at least once every two years or as a part of the Commission's integrated resource planning process or biennial transmission assessment. (Sec. 1)

2.   Directs the Commission to adopt an order specifying the frequency or process within which it will conduct a review. (Sec. 1)

3.   Requires each investor-owned public service corporation doing business in the state to:

a)   research and evaluate the generation and grid management technologies that can protect against or withstand a physical attack and cyberattack;

b)   evaluate the dangers associated with an electromagnetic pulse and the steps necessary to secure a continuous supply of electricity to residents of this state;

c) evaluate new information technology systems and how protections are implemented; and

d)   update and submit the public service corporation's cybersecurity and grid protection protocols to the Commission for review. (Sec. 1)

4.   Requires the Commission, when conducting a review, to:

a)   confirm that each investor-owned public service corporation doing business in the state has a active cyber security and grid protection protocols;

b)   confirm whether each cybersecurity and grid protection protocol submitted to the commission meets certain requirements; and

c) make recommendations to rectify any deficiencies and develop security plans that evaluate and consider the time and costs that are associated with implementing changes. (Sec. 1)

5.   Exempts the review, plans, protocols, dangers or deficiencies and all other information or content related from public inspection. (Sec. 1)

6.   Contains a legislative findings and intent clause that addresses grid reliability and the effects of electromagnetic pulses. (Sec. 2)

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10.                    SB 1501

11.  Initials CW/TM   Page 0 Vetoed by the Governor

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