| 1 | 1 | | By: Toth H.B. No. 3716 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the regulation of bulk-power system equipment by the |
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| 7 | 7 | | Public Utility Commission of Texas. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Chapter 32, Utilities Code, is amended by adding |
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| 10 | 10 | | Subchapter D to read as follows: |
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| 11 | 11 | | SUBCHAPTER D. BULK-POWER SYSTEM TRANSACTIONS |
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| 12 | 12 | | Sec. 32.151. DEFINITIONS. In this subchapter: |
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| 13 | 13 | | (1) "Bulk-power system" means: |
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| 14 | 14 | | (A) the facilities and control systems necessary |
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| 15 | 15 | | for operating an interconnected electric energy transmission |
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| 16 | 16 | | network or a portion of a network, other than: |
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| 17 | 17 | | (i) transmission lines rated at less than |
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| 18 | 18 | | 69,000 volts; and |
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| 19 | 19 | | (ii) facilities used in the local |
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| 20 | 20 | | distribution of electric energy; and |
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| 21 | 21 | | (B) electric energy from generation facilities |
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| 22 | 22 | | needed to maintain transmission reliability. |
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| 23 | 23 | | (2) "Bulk-power system equipment" means items used in |
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| 24 | 24 | | bulk-power system substations, control rooms, or power generating |
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| 25 | 25 | | stations, including reactors, capacitors, substation transformers, |
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| 26 | 26 | | current coupling capacitors, large generators, backup generators, |
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| 27 | 27 | | substation voltage regulators, shunt capacitor equipment, |
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| 28 | 28 | | automatic circuit reclosers, instrument transformers, coupling |
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| 29 | 29 | | capacity voltage transformers, protective relaying, metering |
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| 30 | 30 | | equipment, high voltage circuit breakers, generation turbines, |
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| 31 | 31 | | industrial control systems, distributed control systems, and |
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| 32 | 32 | | safety instrumented systems. |
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| 33 | 33 | | Sec. 32.152. BULK-POWER SYSTEM TRANSACTIONS. (a) The |
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| 34 | 34 | | commission by rule shall prohibit the acquisition, importation, |
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| 35 | 35 | | transfer, or installation of bulk-power system equipment in this |
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| 36 | 36 | | state as part of a transaction that the commission determines |
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| 37 | 37 | | presents an undue security or safety risk to the bulk-power system |
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| 38 | 38 | | in this state because of potential: |
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| 39 | 39 | | (1) sabotage to or subversion of the design, |
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| 40 | 40 | | integrity, manufacturing, production, distribution, installation, |
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| 41 | 41 | | operation, or maintenance of the bulk-power system in this state; |
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| 42 | 42 | | or |
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| 43 | 43 | | (2) catastrophic effects for the security or |
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| 44 | 44 | | resiliency of critical infrastructure or the economy of this state. |
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| 45 | 45 | | (b) The commission shall: |
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| 46 | 46 | | (1) design or negotiate measures to mitigate risks |
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| 47 | 47 | | described by Subsection (a); and |
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| 48 | 48 | | (2) require that a person acquiring, importing, |
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| 49 | 49 | | transferring, or installing bulk-power system equipment in this |
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| 50 | 50 | | state incorporate a mitigation measure in the acquisition, |
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| 51 | 51 | | importation, transfer, or installation. |
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| 52 | 52 | | (c) The commission shall no later than September 1, 2022: |
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| 53 | 53 | | (1) establish and publish criteria for pre-approving |
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| 54 | 54 | | particular equipment and particular vendors in the bulk-power |
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| 55 | 55 | | system equipment market as compliant with this section; and |
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| 56 | 56 | | (2) publish a list of pre-approved equipment and |
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| 57 | 57 | | vendors. |
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| 58 | 58 | | SECTION 2. Subchapter D, Chapter 32, Utilities Code, as |
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| 59 | 59 | | added by this Act, applies only to a contract for the acquisition, |
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| 60 | 60 | | importation, transfer, or installation of bulk-power system |
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| 61 | 61 | | equipment entered into on or after the effective date of this Act. |
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| 62 | 62 | | SECTION 3. This Act takes effect September 1, 2021. |
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