Section 40123 of the Infrastructure and Jobs Act

SEC. 40123. INCENTIVES FOR ADVANCED CYBERSECURITY TECHNOLOGY

INVESTMENT.

Part II of the Federal Power Act is amended by inserting after

section 219 (16 U.S.C. 824s) the following:

``SEC. 219A. <<NOTE: 16 USC 824s-1.>> INCENTIVES FOR

CYBERSECURITY INVESTMENTS.

``(a) Definitions.--In this section:

``(1) Advanced cybersecurity technology.--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

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threat (as defined in section 102 of the Cybersecurity Act of

2015 (6 U.S.C. 1501)).

``(2) Advanced cybersecurity technology information.--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) <<NOTE: Deadline. Consultation.>> Study.--Not later than 180

days after the date of enactment of this section, 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) <<NOTE: Deadline.>> Incentive-Based Rate Treatment.--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) Factors for Consideration.--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 215A(a)) 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) Ratepayer Protection.--

``(1) In general.--Any rate approved under a rule issued

pursuant to this section, including any revisions to that rule,

shall be subject to the requirements of sections 205 and 206

that all rates, charges, terms, and conditions--

``(A) shall be just and reasonable; and

``(B) shall not be unduly discriminatory or

preferential.

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``(2) Prohibition of duplicate recovery.--Any rule issued

pursuant to this section shall preclude rate treatments that

allow unjust and unreasonable double recovery for advanced

cybersecurity technology.

``(f) Single-Issue Rate Filings.--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 205 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) Protection of Information.--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

215A.''.