Relating to affiliation with certain foreign entities of certain persons working or participating in the electricity market; increasing an administrative penalty.
Impact
If enacted, HB 4378 will have significant implications for state laws governing utility management and foreign business operations. The bill modifies existing regulations including Section 39.360 of the Utilities Code. It imposes stricter requirements for registration as a market participant, mandating verification processes for any dealings with foreign entities that could potentially compromise Texas’s critical infrastructure. By holding companies accountable for their affiliations, the bill seeks to safeguard the electricity grid and enhance national security against foreign threats.
Summary
House Bill 4378 aims to regulate the affiliation of certain persons working or participating in the electricity market with specific foreign entities. The bill seeks to enhance the oversight of business practices within Texas' electricity sector, particularly concerning the purchase and management of critical electric grid equipment. It introduces substantial penalties for businesses that violate the provisions of the bill by submitting false or incomplete information related to their affiliations, which could result in up to $1 million for each violation. This legislative effort is primarily focused on maintaining the integrity of Texas's electricity supply and industry standards.
Contention
The contentious points surrounding HB 4378 primarily deal with the balance between necessary regulation and the potential overreach into business operations. While some stakeholders support the bill as a critical move to protect the state's utilities from foreign influence, others raise concerns about the additional regulatory burden it places on businesses. Critiques include fears of chilling effects on investment and increased operational costs, which could ultimately impact electricity prices for consumers. Moreover, businesses may face challenges in compliance with the new attestation requirements, raising questions about how these regulations will be enforced.
Texas Constitutional Statutes Affected
Utilities Code
Chapter 15. Judicial Review, Enforcement, And Penalties
Section: 023
Chapter 39. Restructuring Of Electric Utility Industry
Section: 360
Government Code
Chapter 2275. Prohibition On Contracts With Certain Foreign-owned Companies In Connection With Critical Infrastructure
Same As
Relating to affiliation with certain foreign entities of certain persons working or participating in the electricity market; increasing an administrative penalty.
Similar
Relating to critical infrastructure and utilities, including affiliation with certain foreign entities of certain persons working or participating in the electricity market; authorizing and increasing administrative penalties.
Relating to exceptions to prohibited contracts or other agreements with certain foreign-owned companies in connection with critical infrastructure in this state.
Relating to the continuation and functions of the Public Utility Commission of Texas and the Office of Public Utility Counsel, and the functions of the independent organization certified for the ERCOT power region; increasing an administrative penalty.
Relating to the authority of the Public Utility Commission of Texas to impose administrative penalties and enter into voluntary mitigation plans; increasing an administrative penalty.