SLTPPC FCC Comment to CDT FINAL PROOF

Muchang - Jennifer Urban

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Before the! FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554! In the Matter of )! )! Smart Grid Technology ) GN Docket Nos. 09-47, 09-51, 09-137! )! DA 09-2017 )! ! ! ! COMMENTS OF THE CENTER FOR DEMOCRACY & TECHNOLOGY ! ! ! ! Jennifer M. Urban!Elizabeth Eraker ! Longhao Wang! ! Samuelson Law, Technology & Public Policy Clinic !UC Berkeley School of Law! 585 Simon Hall!Berkeley, CA 94720-7200! (510) 642-7338! ! ! on behalf of: ! Center for Democracy & Technology! ! ! October 2, 2009 ! ! ! ! ! ! ! ! ! ! ! ! ! Table of Contents! ! Summary………………………………………………………………………………….1! ! I. Introduction………………………………………………………………………2! ! II. Overview of Smart Grid Data Collection and Use……….…………………….3! ! a. Data Collection by Utilities…………………………...………………………4 b. Data Sharing and Data Collection by Third Parties…………..……………….6! ! c. Data Storage……………………………………..…………………………….7 d. Data Usage…………………………………….………………………………8 III. Consumer Privacy and Security Implications of Smart Grid Data Collection and Sharing………………………………………..…………………………..…9! ! IV. Legal and Policy Considerations……………..………………………………..12! ! a. Inadequacy of Current Privacy Rules……………..………………......……..12! ! b. Key Privacy and Security Considerations in Developing Smart Grid Rules……………………………………..………………………………..…14! ! c. Key Privacy and Security Considerations in Developing Smart Grid Technologies.……………………..………………………………………….16! ! V. Conclusion…………………….……..………………………………………….17! ! ! ! ! ! ! ! ! ! ! Summary ! In considering the implications of Smart Grid technology as part of its development of the National Broadband Plan, the Commission should carefully consider, and address in its actions, the privacy and security issues that will emerge from the widespread implementation of this technology. These new technologies will collect an unprecedented amount of highly detailed information about consumer energy consumption. This granular usage data reveals deeply personal information about consumer habits, and about consumer activities within the private space of the home. Given both the sensitive nature and high commercial value of this data, utilities and third- party businesses will be eager to make use of it, as will law enforcement investigators and, unfortunately, criminals. As such, a lack of care around this data will pose serious privacy and security risks for consumers. These issues are further complicated by the reality that the Smart Grid, at present, is governed by a patchwork of state and federal laws. Neither in isolation nor taken together do these existing laws provide adequate protection for the categories and quantities of data that may be generated by the Smart Grid. Realizing the likely benefits of the Smart Grid, including improving energy efficiency, reducing utility bills, and protecting the environment, will require consumers to trust that these new technologies will be protective of personal information and secure against threats. At a minimum, any rules governing the development of Smart Grid technologies should require:! ! • Transparent notice to the consumer of data collection practices; ! • Minimized data collection, access, and retention; ! • Meaningful choice for consumers regarding the use and disclosure of their usage information;! • Reasonable consumer access to, and the ability to correct or dispute, all usage information held by utilities or third-party providers; and! • Meaningful security controls to protect consumer usage data, along with adequate remedies for unauthorized use. ! In addition to legal and procedural protections, the Commission should ensure that privacy is integrated at every point in the network via appropriate technological design at the outset, so that privacy and security do not have to be later retrofitted onto the system. Two key design principles the Commission should consider are:! ! • Designing the Smart Grid communications network to ensure the privacy of data transmissions along the entire communications path and at all points of storage; and! • Designing SmartGrid technologies to minimize the amount of consumer data that leaves the house to only such information as is actually required for demand response benefits to be realized.! 1 ! Before the! FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554! In the Matter of )! )! Smart Grid Technology ) GN Docket Nos. 09-47, 09-51, 09-137! )! DA 09-2017 )! ! The Center for Democracy & Technology (“CDT”) respectfully submits these comments in response to the Commission’s Public Notice, DA 09-2017, regarding the implementation of Smart Grid technology. CDT is a nonprofit, public interest organization dedicated to preserving and promoting openness, innovation and freedom on the decentralized Internet. ! ! I. Introduction ! ! In modernizing the electrical grid to provide both consumers and utilities with the ability to monitor, control, and predict energy use, Smart Grid technology holds great promise. The technology also implicates important consumer privacy and security issues that warrant attention as we develop the technical and regulatory infrastructure underlying the new grid. ! ! New funding allocated under the American Recovery and Reinvestment Act of 2009 (“ARRA”) is likely to rapidly accelerate the implementation timeline, connecting 1most U.S. households to the Smart Grid in the next decade. The benefits of this transition are expected to include: fostering more efficient energy use, reducing greenhouse gases, enhancing grid defenses against attack and outage, and lowering consumers’ energy bills. To realize these benefits, the U.S. must make a profound change in the underlying design of our electrical infrastructure, transitioning from a relatively isolated grid operated by a small set of highly trained experts to a completely-connected, less-bordered broadband network that invites widespread participation from individual 2consumers and their appliances. At the core of the new grid’s functionality, as envisioned by many proponents, is the collection and use of fine-grained data about consumer energy use. In order to enable more efficient energy decisions, it is assumed, the Smart Grid depends on the use of much more detailed information about load balance !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 1 This is an extrapolation from the Federal Energy Regulatory Commission (FERC) estimate that 40 million homes and business will have smart meters deployed by 2010. See FERC, Assessment of Demand Response and Advanced Metering 2007, Sept. 2007. 2 A Voice for Smart-Grid Security, Fortnightly, 147 No. 7 Pub. Util. Fort. 24, July 1, 2009. 2 ! 3and energy use than is presently collected. Many Smart Grid proposals rely on the ubiquitous collection of information about consumers’ activities within the home, a space traditionally protected by a strong privacy interest. As the Commission considers the implementation of Smart Grid technology, and utilities and technologists proceed with planning and deployment activities, the time is ripe to address the important privacy and security issues associated with the Smart Grid concept. ! ! Ensuring that the Smart Grid incorporates significant protections for consumer privacy is essential to achieving widespread acceptance and adoption of this exciting new technology. Privacy is an essential building block of trust in the digital age. In the context of a digitized electrical grid, consumers must be assured that the data about their energy usage is kept confidential and secure, or privacy concerns may undermine use of the modernized grid. Building privacy and security protections into the technology now will be less expensive than attempting to address these issues in the future, and will make the grid more adaptable to changing threats to privacy and security as use increases.! ! We thank the Commission for seeking comments on the implications of Smart Grid technology at this relatively early point in its development, and especially for raising 4consumer privacy and security issues in the inquiry. Building on our submission in the 5National Broadband Plan proceeding, these Comments aim to highlight the importance of protecting consumer privacy and implementing critical security protocols. We recommend several principles protective of those interests for the Commission’s consideration as it evaluates new infrastructure and technologies for the Smart Grid in 6developing a broadband plan that advances “energy independence and efficiency.” ! II. Overview of Smart Grid Data Collection and Use! ! Smart Grid technologies have the ability to collect far more detailed information about consumers than previous systems. This enhanced access to consumption information promises several benefits: it allows consumers to track their energy use at different times of the day, and enables utilities to implement time-of-use pricing, whereby consumer are charged higher prices for energy during peak demand periods and charged less when energy demand is low. In response, consumers can defer their energy consumption from peak demand periods to a !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3 Patrick McDaniel and Stephen McLaughlin, Security and Privacy Challenges in the Smart Grid, IEEE, May/June 2009. 4 See, e.g., Question 4(c). 5 Center for Democracy & Technology, In the Matter of A National Broadband Plan for Our Future, GN Docket No. 09-51, available at http://www.cdt.org/speech/20090608_broadband_comments.pdf. 6 American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5, § 600(k)(2)(D), 123 Stat. 115 (2009). 3 ! later hour. This “demand-response” process improves ener