Texas House Bill HB2796

Texas 2021 - 87th Regular

Caption

Relating to the regulation of bulk-power system equipment by the Public Utility Commission of Texas.

Impact

The bill specifically prohibits the acquisition, importation, transfer, or installation of bulk-power system equipment from entities owned or controlled by the communist Chinese government if such transactions pose an undue security or safety risk. This measure reflects increasing concerns over cybersecurity and national security implications related to foreign control over critical infrastructure. Furthermore, the PUCT is tasked with developing recommendations for identifying, isolating, monitoring, or replacing potentially dangerous equipment in the state's energy grid.

Summary

House Bill 2796 aims to regulate bulk-power system equipment in Texas by establishing guidelines for the Public Utility Commission of Texas (PUCT). The bill defines bulk-power systems as facilities and control systems necessary for operating an interconnected electric energy transmission network, while bulk-power system equipment includes items used in substations, control rooms, or power generation facilities. One of the primary purposes of this legislation is to enhance the security and resiliency of Texas's critical infrastructure by mitigating potential risks associated with equipment sourced from countries considered as security threats, particularly communist China.

Contention

While the bill aims to address significant security concerns, it has sparked debate regarding the extent of its implications on future energy transactions. Some stakeholders may argue that it could lead to increased costs for equipment and delays in procurement processes, thus potentially affecting the reliability and efficiency of the bulk-power supply. Additionally, the bill's broad criteria for determining security risks might also raise concerns about compliance and operational flexibility for businesses involved in energy production and distribution.