LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION May 16, 2023 TO: Honorable Todd Hunter, Chair, House Committee on State Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB330 by Hall (Relating to the resilience of the electric grid and certain municipalities.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for SB330, As Engrossed : a negative impact of ($1,216,491) through the biennium ending August 31, 2025. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2024($609,863)2025($606,628)2026($614,982)2027($623,589)2028($632,453)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 20232024($609,863)3.22025($606,628)3.22026($614,982)3.22027($623,589)3.22028($632,453)3.2 Fiscal AnalysisThe bill would create the Texas Grid Security Commission, to be composed of representatives of several state agencies, power generation companies, and transmission and distribution utilities.The bill would require certain members of the security commission to apply for a secret security clearance or an interim secret security clearance to be granted by the federal government. The bill would require the security commission to conduct certain evaluations, including evaluations of all hazards to the ERCOT electric grid, the resilience of municipalities, nuclear generation sites in the state, and certain standards.The bill would require the security commission to investigate the steps that local communities and other states have taken to address grid resilience. The commission could request funding from the Texas Divisions of Emergency Management (TDEM) to conduct site visits to these locations, as required. Based on the findings of these evaluations, the security commission would be required to consider and recommend resilience standards for municipalities and critical components of the ERCOT grid.The bill would require the security commission, by October 1, 2024, to prepare and deliver a report to the legislature on the recommended resilience standards and anticipated timeline for implementation. By that date, the security commission would also have to prepare and deliver a plan for protecting the ERCOT electric grid from all hazards. The bill would require the security commission to prepare and deliver an annual report assessing natural and man-made threats to the electric grid and efforts to mitigate the threats.The bill would require the security commission to establish resilience standards for micro-grids.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
May 16, 2023
TO: Honorable Todd Hunter, Chair, House Committee on State Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB330 by Hall (Relating to the resilience of the electric grid and certain municipalities.), As Engrossed
TO: Honorable Todd Hunter, Chair, House Committee on State Affairs
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB330 by Hall (Relating to the resilience of the electric grid and certain municipalities.), As Engrossed
Honorable Todd Hunter, Chair, House Committee on State Affairs
Honorable Todd Hunter, Chair, House Committee on State Affairs
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB330 by Hall (Relating to the resilience of the electric grid and certain municipalities.), As Engrossed
SB330 by Hall (Relating to the resilience of the electric grid and certain municipalities.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for SB330, As Engrossed : a negative impact of ($1,216,491) through the biennium ending August 31, 2025.
Estimated Two-year Net Impact to General Revenue Related Funds for SB330, As Engrossed : a negative impact of ($1,216,491) through the biennium ending August 31, 2025.
General Revenue-Related Funds, Five- Year Impact:
2024 ($609,863)
2025 ($606,628)
2026 ($614,982)
2027 ($623,589)
2028 ($632,453)
All Funds, Five-Year Impact:
2024 ($609,863) 3.2
2025 ($606,628) 3.2
2026 ($614,982) 3.2
2027 ($623,589) 3.2
2028 ($632,453) 3.2
Fiscal Analysis
The bill would create the Texas Grid Security Commission, to be composed of representatives of several state agencies, power generation companies, and transmission and distribution utilities.The bill would require certain members of the security commission to apply for a secret security clearance or an interim secret security clearance to be granted by the federal government. The bill would require the security commission to conduct certain evaluations, including evaluations of all hazards to the ERCOT electric grid, the resilience of municipalities, nuclear generation sites in the state, and certain standards.The bill would require the security commission to investigate the steps that local communities and other states have taken to address grid resilience. The commission could request funding from the Texas Divisions of Emergency Management (TDEM) to conduct site visits to these locations, as required. Based on the findings of these evaluations, the security commission would be required to consider and recommend resilience standards for municipalities and critical components of the ERCOT grid.The bill would require the security commission, by October 1, 2024, to prepare and deliver a report to the legislature on the recommended resilience standards and anticipated timeline for implementation. By that date, the security commission would also have to prepare and deliver a plan for protecting the ERCOT electric grid from all hazards. The bill would require the security commission to prepare and deliver an annual report assessing natural and man-made threats to the electric grid and efforts to mitigate the threats.The bill would require the security commission to establish resilience standards for micro-grids.
The bill would create the Texas Grid Security Commission, to be composed of representatives of several state agencies, power generation companies, and transmission and distribution utilities.
The bill would require certain members of the security commission to apply for a secret security clearance or an interim secret security clearance to be granted by the federal government.
The bill would require the security commission to conduct certain evaluations, including evaluations of all hazards to the ERCOT electric grid, the resilience of municipalities, nuclear generation sites in the state, and certain standards.
The bill would require the security commission to investigate the steps that local communities and other states have taken to address grid resilience. The commission could request funding from the Texas Divisions of Emergency Management (TDEM) to conduct site visits to these locations, as required. Based on the findings of these evaluations, the security commission would be required to consider and recommend resilience standards for municipalities and critical components of the ERCOT grid.
The bill would require the security commission, by October 1, 2024, to prepare and deliver a report to the legislature on the recommended resilience standards and anticipated timeline for implementation. By that date, the security commission would also have to prepare and deliver a plan for protecting the ERCOT electric grid from all hazards.
The bill would require the security commission to prepare and deliver an annual report assessing natural and man-made threats to the electric grid and efforts to mitigate the threats.
The bill would require the security commission to establish resilience standards for micro-grids.
Methodology
The Public Utility Commission (PUC) estimates that, to implement the provisions of the bill, the agency would need additional staffing and resources to work with the security commission on recommendations. The 2.0 additional FTEs include 1.0 Engineer III ($75,000 per fiscal year) and 1.0 Program Specialist, who would be a subject matter expert in critical infrastructure security risk management ($90,000 per fiscal year). The agency also anticipates costs for equipment and employee benefits. In total, the fiscal impact to PUC would be $221,520 each fiscal year.The Texas Division of Emergency Management (TDEM) estimates that, to implement the provisions of the bill, the agency would need additional staffing and resources to provide subject matter expertise. The 1.2 additional FTEs include 1.0 Division Director ($197,590 in fiscal 2024 and $213,694 in fiscal 2025) and 0.2 Program Specialist IV ($12,723 each fiscal year). The agency also anticipates costs for other personnel, fuels and lubricants, consumable supplies, utilities, travel, building rent, other operating expenses, and employee benefits. In total, the fiscal impact to TDEM would be $388,343 in fiscal 2024 and $385,108 in fiscal 2025.It is assumed that any costs to other agencies to implement the provisions of the bill could be absorbed using existing resources.
The Texas Division of Emergency Management (TDEM) estimates that, to implement the provisions of the bill, the agency would need additional staffing and resources to provide subject matter expertise. The 1.2 additional FTEs include 1.0 Division Director ($197,590 in fiscal 2024 and $213,694 in fiscal 2025) and 0.2 Program Specialist IV ($12,723 each fiscal year). The agency also anticipates costs for other personnel, fuels and lubricants, consumable supplies, utilities, travel, building rent, other operating expenses, and employee benefits. In total, the fiscal impact to TDEM would be $388,343 in fiscal 2024 and $385,108 in fiscal 2025.It is assumed that any costs to other agencies to implement the provisions of the bill could be absorbed using existing resources.
It is assumed that any costs to other agencies to implement the provisions of the bill could be absorbed using existing resources.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 300 Trusteed Programs Within the Office of the Governor, 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 401 Military Department, 455 Railroad Commission, 473 Public Utility Commission of Texas, 479 State Office of Risk Management, 575 Texas Division of Emergency Management, 710 Texas A&M University System Administrative and General Offices
300 Trusteed Programs Within the Office of the Governor, 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 401 Military Department, 455 Railroad Commission, 473 Public Utility Commission of Texas, 479 State Office of Risk Management, 575 Texas Division of Emergency Management, 710 Texas A&M University System Administrative and General Offices
LBB Staff: b > td > JMc, SMAT, JSM, CFl, NV, SZ
JMc, SMAT, JSM, CFl, NV, SZ