By: Toth H.B. No. 3716
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of bulk-power system equipment by the
Public Utility Commission of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 32, Utilities Code, is amended by adding
Subchapter D to read as follows:
SUBCHAPTER D. BULK-POWER SYSTEM TRANSACTIONS
Sec. 32.151. DEFINITIONS. In this subchapter:
(1) "Bulk-power system" means:
(A) the facilities and control systems necessary
for operating an interconnected electric energy transmission
network or a portion of a network, other than:
(i) transmission lines rated at less than
69,000 volts; and
(ii) facilities used in the local
distribution of electric energy; and
(B) electric energy from generation facilities
needed to maintain transmission reliability.
(2) "Bulk-power system equipment" means items used in
bulk-power system substations, control rooms, or power generating
stations, including reactors, capacitors, substation transformers,
current coupling capacitors, large generators, backup generators,
substation voltage regulators, shunt capacitor equipment,
automatic circuit reclosers, instrument transformers, coupling
capacity voltage transformers, protective relaying, metering
equipment, high voltage circuit breakers, generation turbines,
industrial control systems, distributed control systems, and
safety instrumented systems.
Sec. 32.152. BULK-POWER SYSTEM TRANSACTIONS. (a) The
commission by rule shall prohibit the acquisition, importation,
transfer, or installation of bulk-power system equipment in this
state as part of a transaction that the commission determines
presents an undue security or safety risk to the bulk-power system
in this state because of potential:
(1) sabotage to or subversion of the design,
integrity, manufacturing, production, distribution, installation,
operation, or maintenance of the bulk-power system in this state;
or
(2) catastrophic effects for the security or
resiliency of critical infrastructure or the economy of this state.
(b) The commission shall:
(1) design or negotiate measures to mitigate risks
described by Subsection (a); and
(2) require that a person acquiring, importing,
transferring, or installing bulk-power system equipment in this
state incorporate a mitigation measure in the acquisition,
importation, transfer, or installation.
(c) The commission shall no later than September 1, 2022:
(1) establish and publish criteria for pre-approving
particular equipment and particular vendors in the bulk-power
system equipment market as compliant with this section; and
(2) publish a list of pre-approved equipment and
vendors.
SECTION 2. Subchapter D, Chapter 32, Utilities Code, as
added by this Act, applies only to a contract for the acquisition,
importation, transfer, or installation of bulk-power system
equipment entered into on or after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2021.