Texas House Bill HB131

Texas 2025 - 89th Regular

• Filed: 3/13/25

Caption

Relating to affiliation with certain foreign entities of certain persons working or participating in the electricity market; increasing an administrative penalty.

Impact

The bill increases the administrative penalties for businesses submitting false or incomplete information to the independent organization overseeing the ERCOT power region. Specifically, violations under the bill can result in penalties of up to $1 million for each occurrence. This significant increase in potential penalties reflects a strong legislative intent to enforce compliance and ensure that the electric market maintains rigorous standards, thereby protecting the state's critical infrastructure from foreign influence that may endanger security or operational reliability.

Summary

House Bill 131 (HB131) addresses issues pertaining to the oversight of business affiliations with certain foreign entities in the electricity market of Texas. The bill includes provisions that amend the Utilities Code, particularly sections related to the registration and operational conditions for market participants in the electricity sector. This introduces more stringent regulations aimed at preventing potential security risks posed by foreign affiliations that could compromise the Texas electric grid's stability and integrity.

Contention

Debate surrounding HB131 has focused on balancing the need for national security and operational safety within the electricity market against concerns regarding regulatory overreach and the operational burdens placed on businesses. Proponents of the bill argue that increased scrutiny and penalties are essential given the growing threats from foreign entities in critical infrastructure sectors. However, opponents raise concerns about the fair application of penalties and the potential chilling effect such stringent regulations may have on business transparency and participation in the electricity market.

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
  • Section: 0102