Relating to the protection of critical components of the electric grid from damage from electromagnetic threats.
The bill establishes a grant program intended to fund necessary protective upgrades for critical electric grid components at risk from these threats. Owners of identified components can apply for grants, but any costs funded by these grants cannot be recovered under existing laws. Additionally, the bill creates an 'electromagnetic pulse protection and resilience account' within the general revenue fund, designed to support further resilience initiatives and enhancements as stipulated by the commission. A biennial review of the grant program is also required to assess its fiscal impact and the public benefits achieved.
SB1740 is a legislative proposal aimed at enhancing the resilience of Texas's electric grid against electromagnetic threats. This bill introduces a new chapter to the Utilities Code, establishing protocols for identifying and protecting critical components susceptible to potential damage from electromagnetic pulses (EMPs) and geomagnetic disturbances. Specifically, the bill mandates that all high-capacity generation substations and large power transformers built after September 1, 2025, must adhere to standards outlined in reports from the EMP Commission, making necessary designs to withstand specific electromagnetic threats.
While the bill reflects a proactive approach to safeguarding Texas's electric grid, points of contention may arise regarding the financial implications of these upgrades on electric utilities and consumers. Critics may voice concerns over the potential costs associated with implementing the mandated protections, the impact on utility profitability, and the appropriateness of state intervention in utility regulation. The requirement for compliance with federally recommended standards may also spark debate about state sovereignty and the best approaches to securing infrastructure against national security threats.