Texas 2019 - 86th Regular

Texas Senate Bill SB1003 Compare Versions

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1	1	By: Hall S.B. No. 1003
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to promoting the resilience of the electric grid and
7	7	certain municipalities.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. The legislature finds that:
10	10	(1) A resilient Texas electric grid that offers
11	11	businesses continuity of operations in the event of a natural or
12	12	man-made disaster, including hurricanes, flooding, terrorist
13	13	attacks, cybersecurity threats, electromagnetic pulse threats, and
14	14	geomagnetic disturbance threats, will be an unrivaled attraction
15	15	for businesses to expand or move their operations to this state and
16	16	for protecting military installations;
17	17	(2) this state's food and water supplies, fuel supply,
18	18	communications systems, banking, hospitals and health care
19	19	facilities, law enforcement, and countless critical functions
20	20	depend on the electric grid, making the grid's protection vital to
21	21	our economy and homeland security;
22	22	(3) the United States Department of Homeland Security
23	23	has recommended protection against these threats and has published
24	24	Electromagnetic Pulse (EMP) Protection and Resilience Guidelines
25	25	for Critical Infrastructure and Equipment, which can be used to
26	26	mitigate the effects of such a disaster;
27	27	(4) Texas Governor Greg Abbott has outlined in his
28	28	most recent state-wide address that he is giving the legislature
29	29	time during this legislative session "to make Texas more resilient
30	30	to future disasters" by "making disaster response an emergency
31	31	item;"
32	32	(5) public confidence in the resilience of the Texas
33	33	electric grid is essential to ensuring economic prosperity,
34	34	domestic tranquility, continuity of government, and
35	35	life-sustaining systems;
36	36	(6) protection of the electric grid would assure these
37	37	businesses and the citizens of this state that the "lights will be
38	38	back on first in Texas" in the event of a catastrophic failure of
39	39	the grid;
40	40	(7) the federal government has failed to protect the
41	41	citizens of this state by addressing the vulnerability of the
42	42	electric grid;
43	43	(8) Texas is uniquely positioned to be the first state
44	44	to take action to protect its electric grid, because it is the only
45	45	state with a grid exclusively within its boundaries; and
46	46	(9) when this state begins implementation of the
47	47	electric grid resilience plan, short- and long-term economic
48	48	benefit will far exceed, even the most optimistic estimates of, the
49	49	conventional economic incentives provided by tax abatements to
50	50	attract businesses to this state.
51	51	SECTION 2. Subtitle B, Title 2, Utilities Code, is amended
52	52	by adding Chapter 44 to read as follows:
53	53	CHAPTER 44. GRID RESILIENCE
54	54	Sec. 44.001. DEFINITIONS. In this chapter:
55	55	(1) "EMP Commission reports" means the July 2017
56	56	report released by the Commission to Assess the Threat to the United
57	57	States from Electromagnetic Pulse (EMP) Attack titled "Recommended
58	58	E3 HEMP Heave Electric Field Waveform for the Critical
59	59	Infrastructures" and all other reports by the EMP Commission.
60	60	(2) "Micro-grid" means a group of interconnected loads
61	61	and distributed energy resources inside clearly defined electrical
62	62	boundaries that act as a single controllable entity with respect to
63	63	the grid.
64	64	(3) "Security commission" means the Texas Grid
65	65	Security Commission.
66	66	Sec. 44.002. TEXAS GRID SECURITY COMMISSION. (a) The
67	67	security commission is composed of the following members:
68	68	(1) a representative of the Texas Division of
69	69	Emergency Management appointed by the chief of the division;
70	70	(2) a representative of the State Office of Risk
71	71	Management appointed by the risk management board;
72	72	(3) a representative of the independent organization
73	73	certified under Section 39.151 for the ERCOT region appointed by
74	74	the chief executive officer of the organization;
75	75	(4) a representative of the Texas Military Department
76	76	appointed by the adjutant general of the department;
77	77	(5) a representative of the Texas Military
78	78	Preparedness Commission appointed by the military preparedness
79	79	commission;
80	80	(6) a representative of the Office of State-Federal
81	81	Relations appointed by the director of the office;
82	82	(7) a representative of the Department of Information
83	83	Resources appointed by the director of the department.
84	84	(8) a representative of power generation companies
85	85	appointed by the chief of the Texas Division of Emergency
86	86	Management;
87	87	(9) two representatives of transmission and
88	88	distribution utilities appointed by the chief of the Texas Division
89	89	of Emergency Management;
90	90	(10) one representative appointed by the chief of the
91	91	Texas Division of Emergency Management from each of the following
92	92	essential services sectors:
93	93	(A) law enforcement;
94	94	(B) emergency services;
95	95	(C) communications;
96	96	(D) water and sewer services;
97	97	(E) health care;
98	98	(F) financial services; and
99	99	(G) food and agriculture;
100	100	(11) an expert in the field of higher education
101	101	appointed by the chief of the Texas Division of Emergency
102	102	Management.
103	103	(b) The chief of the Texas Division of Emergency Management
104	104	may appoint a member of the United States Air Force's
105	105	Electromagnetic Defense Task Force to the security commission.
106	106	(c) The Texas Division of Emergency Management shall
107	107	designate a member of the security commission to serve as presiding
108	108	officer.
109	109	(d) The security commission shall convene at the call of the
110	110	presiding officer.
111	111	(e) A vacancy on the security commission is filled by
112	112	appointment for the unexpired term in the same manner as the
113	113	original appointment.
114	114	Sec. 44.003. GRID RESILIENCE INFORMATION. (a) Information
115	115	used in determining the vulnerabilities of the electric grid or
116	116	that is related to measures to be taken to protect the grid is
117	117	confidential and not subject to Chapter 552, Government Code.
118	118	(b) Information described by Subsection (a) shall be stored
119	119	and maintained by the independent organization certified under
120	120	Section 39.151 for the ERCOT region.
121	121	(c) A member of the security commission may not access
122	122	confidential information described by Subsection (a) unless the
123	123	member has a secret security clearance granted by the federal
124	124	government.
125	125	(d) The following members of the security commission may
126	126	apply for a secret security clearance or an interim secret security
127	127	clearance to be granted by the federal government:
128	128	(1) the representative of the independent
129	129	organization certified under Section 39.151 for the ERCOT region;
130	130	(2) the representative of the Texas Division of
131	131	Emergency Management; and
132	132	(3) the representative of the State Office of Risk
133	133	Management.
134	134	Sec. 44.004. CRITICAL COMPONENT RESILIENCE. (a) The State
135	135	Office of Risk Management shall select a contractor to identify
136	136	critical components of the ERCOT electric grid vulnerable to EMP,
137	137	GMD, cyber, or physical attack. The contractor must identify the
138	138	critical components before the expiration of six months after the
139	139	date the contractor is engaged.
140	140	(b) Not later than January 1, 2021, an entity that owns or
141	141	operates a component identified by the contractor under Subsection
142	142	(a) as critical shall upgrade the component as necessary for the
143	143	component to meet the applicable standard proposed in the EMP
144	144	Commission reports.
145	145	(c) The State Office of Risk Management shall select a
146	146	contractor to verify whether affected entities have upgraded
147	147	components as required by Subsection (b).
148	148	(d) Each contractor selected by the State Office of Risk
149	149	Management under this section must have experience hardening
150	150	electrical systems to meet military standards at the federal level.
151	151	Sec. 44.005. PLAN FOR CONTINUITY OF SERVICES. (a) Not
152	152	later than January 1, 2020, the security commission shall prepare
153	153	and deliver to the legislature a plan for continuity of services in
154	154	the event of a catastrophic loss of power in the state.
155	155	(b) The plan must include:
156	156	(1) provisions for installing, replacing, or
157	157	upgrading extra high-voltage power transformers and supervisory
158	158	control and data acquisition systems to withstand 100
159	159	kilovolts/meter E1 electromagnetic pulses and 85 volts/kilometer
160	160	E3 electromagnetic pulses not later than January 1, 2024;
161	161	(2) a timeline for upgrading remaining infrastructure
162	162	to meet recommendations of the EMP Commission reports; and
163	163	(3) long-term resilience provisions for supporting
164	164	industries including:
165	165	(A) nuclear reactors, materials, and waste
166	166	(B) fuel supply;
167	167	(C) health care;
168	168	(D) communications;
169	169	(E) water and sewer services; and
170	170	(F) food supply; and
171	171	(4) any additional provisions deemed necessary by the
172	172	security commission.
173	173	(c) The security commission may consult with the Private
174	174	Sector Advisory Council in developing the plan.
175	175	(d) The Texas Division of Emergency Management shall
176	176	incorporate the plan into the state emergency management plan and
177	177	update the plan as necessary to incorporate the progressive
178	178	improvement of the system.
179	179	Sec. 44.006. ALTERNATIVE TIMELINE OR STANDARD. A panel
180	180	composed of members of the security commission who have obtained a
181	181	secret security clearance granted by the federal government may
182	182	approve a resilience standard or implementation timeline for an
183	183	electric utility or other entity that differs from a resilience
184	184	standard or implementation timeline adopted under Section 44.005.
185	185	Sec. 44.007. RESILIENCE COST RECOVERY. A regulatory
186	186	authority shall include in establishing the rates of an electric
187	187	utility consideration of the costs incurred to install, replace, or
188	188	upgrade facilities or equipment to meet a resilience standard
189	189	established under this chapter. A regulatory authority shall
190	190	presume that costs incurred to meet a resilience standard under
191	191	this chapter are reasonable and necessary expenses.
192	192	Sec. 44.008. MICRO-GRIDS. (a) The security commission
193	193	shall establish resilience standards for micro-grids and certify a
194	194	micro-grid that meets the standards.
195	195	(b) Except as provided by Subsection (c), a municipality or
196	196	other political subdivision may not enact or enforce an ordinance
197	197	or other measure that bans, limits, or otherwise regulates inside
198	198	the boundaries or extraterritorial jurisdiction of the
199	199	municipality or political subdivision a micro-grid that is
200	200	certified by the security commission under this section.
201	201	(c) The owner or operator of a micro-grid certified by the
202	202	security commission is a power generation company and is required
203	203	to register under Section 39.351(a). The owner or operator of the
204	204	micro-grid is entitled to:
205	205	(1) interconnect the micro-grid;
206	206	(2) obtain transmission service for the micro-grid;
207	207	and
208	208	(3) use the micro-grid to sell electricity and
209	209	ancillary services at wholesale in a manner consistent with the
210	210	provisions of this title and commission rules applicable to a power
211	211	generation company or an exempt wholesale generator.
212	212	SECTION 3. Chapter 380, Local Government Code, is amended
213	213	by adding Section 380.004 to read as follows:
214	214	Sec. 380.004. FIVE STAR GOLD RESILIENT COMMUNITIES.
215	215	(a) An Energy Resilient Community is one where provisions
216	216	have been made to ensure that energy, electric power,
217	217	and fuel supplies are protected and available for
218	218	recovery in the event of a catastrophic power outage.
219	219	(b) The Texas Grid Security Commission shall establish
220	220	resilience standards for municipalities in the following essential
221	221	service areas:
222	222	(1) emergency services;
223	223	(2) communications systems;
224	224	(3) clean water and sewer services;
225	225	(4) health care systems; and
226	226	(5) financial services.
227	227	(c) On the application of a municipality for the
228	228	designation, the Texas Grid Security Commission may designate a
229	229	municipality that meets the resilience standards in the applicable
230	230	service area as:
231	231	(1) a Resilient Emergency Services Community;
232	232	(2) a Resilient Communications Systems Community;
233	233	(3) a Resilient Clean Water and Sewer Services
234	234	Community;
235	235	(4) a Resilient Health Care Systems Community; or
236	236	(5) a Resilient Financial Services Community.
237	237	(d) The Texas Grid Security Commission may designate a
238	238	municipality that meets the resilience standards in all five
239	239	service areas as a Five Star Gold Resilient Community.
240	240	(d) A municipality may not use a resilient community
241	241	designation in advertising, marketing, or economic development
242	242	initiatives unless the Texas Grid Security Commission has awarded
243	243	the municipality with the designation in the applicable service
244	244	area or as a Five Star Gold Resilient Community.
245	245	SECTION 4. Not later than January 1, 2021, the Texas Grid
246	246	Security Commission shall prepare and deliver a report to the
247	247	legislature on the progress of implementing resilience standards
248	248	adopted under Sections 44.004 and 44.005, Utilities Code, as added
249	249	by this Act.
250	250	SECTION 5. This Act takes effect immediately if it receives
251	251	a vote of two-thirds of all the members elected to each house, as
252	252	provided by Section 39, Article II, Texas Constitution. If this Act
253	253	does not receive the vote necessary for immediate effect, this Act
254	254	takes effect September 1, 2019.