§824s–1 — Title 16 Conservation | U.S. Code

Summary

The Commission must study and then make rules that give electric utilities financial incentives to buy or use better cybersecurity tools and to share threat information. "Advanced cybersecurity technology" means hardware, software, services, or other tools that help utilities protect, detect, respond, or recover from cyber threats. "Advanced cybersecurity technology information" means information about those tools that is given to or created for the federal government. Not later than 180 days after November 15, 2021, the Commission, working with the Secretary of Energy, NERC, the Electricity Subsector Coordinating Council, and NARUC, must identify incentive-based, including performance-based, rate options for interstate transmission and wholesale sales of electricity to encourage investments and participation in information sharing. Within 1 year after that study, the Commission must adopt rules to do this. The rules may add extra incentives when investments reduce risks to defense-critical or other critical facilities (with input from Energy, Homeland Security, and other agencies) or to small and medium utilities. Any rates must be just and reasonable under sections 824d and 824e, avoid unfair double recovery, allow single-issue tariff applications to recover costs over asset life, and treat shared cybersecurity information as critical electric infrastructure information under section 824o–1.

Title 16, §824s–1

Conservation — Source: USLM XML via OLRC

(a)In this section:

(1)The term “advanced cybersecurity technology” means any technology, operational capability, or service, including computer hardware, software, or a related asset, that enhances the security posture of public utilities through improvements in the ability to protect against, detect, respond to, or recover from a cybersecurity threat (as defined in section 650 of title 6).

(2)The term “advanced cybersecurity technology information” means information relating to advanced cybersecurity technology or proposed advanced cybersecurity technology that is generated by or provided to the Commission or another Federal agency.

(b)Not later than 180 days after November 15, 2021, the Commission, in consultation with the Secretary of Energy, the North American Electric Reliability Corporation, the Electricity Subsector Coordinating Council, and the National Association of Regulatory Utility Commissioners, shall conduct a study to identify incentive-based, including performance-based, rate treatments for the transmission and sale of electric energy subject to the jurisdiction of the Commission that could be used to encourage—

(1)investment by public utilities in advanced cybersecurity technology; and

(2)participation by public utilities in cybersecurity threat information sharing programs.

(c)Not later than 1 year after the completion of the study under subsection (b), the Commission shall establish, by rule, incentive-based, including performance-based, rate treatments for the transmission of electric energy in interstate commerce and the sale of electric energy at wholesale in interstate commerce by public utilities for the purpose of benefitting consumers by encouraging—

(1)investments by public utilities in advanced cybersecurity technology; and

(2)participation by public utilities in cybersecurity threat information sharing programs.

(d)In issuing a rule pursuant to this section, the Commission may provide additional incentives beyond those identified in subsection (c) in any case in which the Commission determines that an investment in advanced cybersecurity technology or information sharing program costs will reduce cybersecurity risks to—

(1)defense critical electric infrastructure (as defined in section 824o–1(a) of this title) and other facilities subject to the jurisdiction of the Commission that are critical to public safety, national defense, or homeland security, as determined by the Commission in consultation with—

(A)the Secretary of Energy;

(B)the Secretary of Homeland Security; and

(C)other appropriate Federal agencies; and

(2)facilities of small or medium-sized public utilities with limited cybersecurity resources, as determined by the Commission.

(e)(1)Any rate approved under a rule issued pursuant to this section, including any revisions to that rule, shall be subject to the requirements of section 824d and 824e of this title that all rates, charges, terms, and conditions—

(A)shall be just and reasonable; and

(B)shall not be unduly discriminatory or preferential.

(2)Any rule issued pursuant to this section shall preclude rate treatments that allow unjust and unreasonable double recovery for advanced cybersecurity technology.

(f)The Commission shall permit public utilities to apply for incentive-based rate treatment under a rule issued under this section on a single-issue basis by submitting to the Commission a tariff schedule under section 824d of this title that permits recovery of costs and incentives over the depreciable life of the applicable assets, without regard to changes in receipts or other costs of the public utility.

(g)Advanced cybersecurity technology information that is provided to, generated by, or collected by the Federal Government under subsection (b), (c), or (f) shall be considered to be critical electric infrastructure information under section 824o–1 of this title.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2022—Subsec. (a)(1). Pub. L. 117–263 substituted “section 650 of title 6” for “section 1501 of title 6”.

Statutory Notes and Related Subsidiaries

Wage Rate RequirementsFor provisions relating to rates of wages to be paid to laborers and mechanics on projects for

Construction

, alteration, or repair work funded under div. D or an amendment by div. D of Pub. L. 117–58, including authority of Secretary of Labor, see section 18851 of Title 42, The Public Health and Welfare.

§824s–1 Incentives for cybersecurity investments