Cybersecurity: The State Regulators’ Perspective

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Presentation transcript:

Cybersecurity: The State Regulators’ Perspective Lynn P. Costantini, D. Sc., CISSP Manager, Cybersecurity Compliance and Oversight New Jersey Board of Public Utilities March 21, 2018

Today’s Topics The Evolving Role of State Utility Regulators Opportunities and Challenges New Jersey’s Experience

The Evolving Role of State Utility Regulators Rapidly evolving cyber threats Mix of regulatory approaches Some critical assets not covered States’ regulatory role Ensure safe and reliable service at prudent and just rates; Determine appropriateness of utilities’ cybersecurity policies and practices

Challenge: Determine how much cybersecurity is enough Technical knowledge and experience Resource constraints Compliance vs. risk reduction Opportunity: Promote discourse, information sharing, and partnership among all stakeholders

Progress? Utility Engagement? Issued Orders? Yes No Source: NARUC Critical Infrastructure Committee, February 2017

Exercises Has your state conducted an exercise based on a cyber security scenario? Yes No Source: NARUC Critical Infrastructure Committee, February 2017

Cyber Information Sharing Between utilities and state regulators Between state agencies Between state regulators and federal partners Source: NARUC Critical Infrastructure Committee, February 2017

Security Clearances Yes No Does anyone on your commission have a security clearance? Source: NARUC Critical Infrastructure Committee, February 2017

Progress!

The New Jersey Experience 2004 Docket A004070733 - Comply with best security practices, including those for cybersecurity. 2011 Docket EO11090575 – Report cybersecurity incidents involving industrial control systems 2016 Docket A016030196 - Comply with specific cybersecurity requirements

Cybersecurity Requirements Scope: Industrial control systems (SCADA/PLC/RTU) Customer-facing systems that contain “PII” Cyber Security Program Requirements Cyber Risk Management Identify Monitor Situational Awareness Incident Reporting Response and Recovery Security Awareness and Training Analyze Control

Compliance and Oversight Utilities self-certify compliance annually. First certification date was October 31, 2017. BPU staff and NJCCIC are developing a program to monitor utilities‘ compliance to the Cyber Order and their adherence to best utility practices. BPU staff will periodically review the requirements set forth in the Cyber Order to determine whether additional requirements or program refinements are needed.

Collaboration is a Priority State Partners Attorney General OHSP NJCCIC OIT State Police/OEM Federal partners DOE DHS FBI In addition to collaboration with utilities, BPU engages in interagency collaboration as a necessity to achieve resilience, particularly in cyber space

Thank You! lynn.costantini@bpu.nj.gov