TX
Texas House Bill HB941

Texas 2025 - 89th Regular

Texas House Bill HB941 Compare Versions

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11 89R1144 CXP-F
22 By: Cain H.B. No. 941
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77 A BILL TO BE ENTITLED
88 AN ACT
99 relating to the resilience of the electric grid and certain
1010 municipalities.
1111 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1212 SECTION 1. The legislature finds that:
1313 (1) electric grid outages threaten the lives of the
1414 citizens of this state and pose a disproportionately large risk to:
1515 (A) the elderly, vulnerable, and underprivileged
1616 within this state; and
1717 (B) communities facing disproportionate
1818 environmental health burdens and population vulnerabilities
1919 relating to facilities such as chemical plants and refineries that
2020 can become environmental disaster areas when taken off-line due to
2121 loss of electricity;
2222 (2) the 16 critical infrastructure sectors identified
2323 in President Barack Obama's Presidential Policy Directive
2424 "Critical Infrastructure Security and Resilience" (PPD-21)
2525 (chemical, commercial facilities, communications, critical
2626 manufacturing, dams, defense industrial base, emergency services,
2727 energy, financial services, food and agriculture, government
2828 facilities, healthcare and public health, information technology,
2929 nuclear reactors, materials, and waste, transportation systems,
3030 water and wastewater systems) depend on the electric grid in this
3131 state and make the grid's protection vital to the economy of this
3232 nation and homeland security;
3333 (3) the power outage that occurred in this state in
3434 February 2021 caused:
3535 (A) death and suffering in this state;
3636 (B) economic loss to this state's economy;
3737 (C) impacts to all critical infrastructures in
3838 this state;
3939 (D) the dispatch of generation units that likely
4040 exceeded limits established by the Environmental Protection Agency
4141 for sulfur dioxide, nitrogen oxide, mercury, and carbon monoxide
4242 emissions and wastewater release limits;
4343 (E) radically increased pricing of electricity
4444 and made electric power bills unaffordable to many customers across
4545 this state; and
4646 (F) exacerbation of COVID-19 pandemic risk by
4747 forcing many of the state's citizens to consolidate at warming
4848 centers and in other small spaces where warmth for survival
4949 superseded social distancing protocols;
5050 (4) a previous large-scale power outage occurred in
5151 this state in February 2011 during which 4.4 million customers were
5252 affected;
5353 (5) this state is uniquely positioned to prevent power
5454 outages because this state is a net exporter of energy and is the
5555 only state with an electric grid almost exclusively within its
5656 territorial boundaries;
5757 (6) the 2011 and 2021 power outages call into
5858 question:
5959 (A) whether too much risk has been accepted
6060 regarding weatherization of electric generation infrastructure;
6161 (B) whether this state lacks the internal
6262 distribution structure and control systems to manage rolling
6363 outages; and
6464 (C) whether sufficient resources have been
6565 allocated toward overall grid resilience;
6666 (7) public confidence in the resilience of the
6767 electric grid in this state is essential to ensuring economic
6868 prosperity, domestic tranquility, continuity of government, and
6969 life-sustaining systems;
7070 (8) a resilient electric grid that offers businesses
7171 in this state continuity of operations in the event of a natural or
7272 man-made disaster will be an unrivaled attraction for businesses to
7373 expand or move their operations to this state;
7474 (9) a resilient electric grid that can operate in the
7575 event of a natural or man-made disaster will protect important
7676 facets of this state, including its military installations and
7777 environment;
7878 (10) current market incentives and regulations are not
7979 sufficient for electric utilities to:
8080 (A) prioritize grid security and resilience; and
8181 (B) protect the grid against hazards;
8282 (11) protection of the electric grid in this state
8383 against hazards would assure businesses and the citizens of this
8484 state that the "lights will be back on first in Texas" in the event
8585 of a nationwide catastrophe affecting electric infrastructure,
8686 sparing this state from catastrophic societal and environmental
8787 consequences; and
8888 (12) when this state begins implementation of the plan
8989 for all hazards resilience described by Section 44.007, Utilities
9090 Code, as added by this Act, to protect the electric grid in this
9191 state, short-term and long-term economic benefits will far exceed
9292 even the most optimistic estimates of the conventional economic
9393 incentives provided by tax abatements to attract businesses to this
9494 state.
9595 SECTION 2. Subtitle B, Title 2, Utilities Code, is amended
9696 by adding Chapter 44 to read as follows:
9797 CHAPTER 44. GRID RESILIENCE
9898 Sec. 44.001. DEFINITIONS. In this chapter:
9999 (1) "All hazards" means:
100100 (A) terrestrial weather including wind,
101101 hurricanes, tornadoes, flooding, ice storms, extended cold weather
102102 events, heat waves, and wildfires;
103103 (B) seismic events including earthquakes and
104104 tsunamis;
105105 (C) physical threats including terrorist attacks
106106 with direct fire, drones, explosives, and other methods of physical
107107 sabotage;
108108 (D) cyber attacks including malware attacks and
109109 hacking of unprotected or compromised information technology
110110 networks;
111111 (E) manipulation of operational technology
112112 devices including sensors, actuators, and drives;
113113 (F) electromagnetic threats through man-made
114114 radio frequency weapons, high-altitude nuclear electromagnetic
115115 pulses, and naturally occurring geomagnetic disturbances;
116116 (G) electric generation supply chain
117117 vulnerabilities including insecure or inadequate fuel
118118 transportation or storage; and
119119 (H) insider threats caused by compromised or
120120 hostile personnel working within government or the utility
121121 industry.
122122 (2) "Micro-grid" means a group of interconnected loads
123123 and distributed energy resources inside clearly defined electrical
124124 boundaries.
125125 (3) "Security commission" means the Texas Grid
126126 Security Commission.
127127 Sec. 44.002. TEXAS GRID SECURITY COMMISSION. (a) The Texas
128128 Grid Security Commission is composed of the following members:
129129 (1) a representative of the Texas Division of
130130 Emergency Management appointed by the chief of that division;
131131 (2) a representative of the commission appointed by
132132 that commission;
133133 (3) a representative of the Railroad Commission of
134134 Texas appointed by that commission;
135135 (4) a representative of the independent organization
136136 certified under Section 39.151 for the ERCOT power region appointed
137137 by the chief executive officer of that organization;
138138 (5) a representative of power generation companies
139139 appointed by the chief of the Texas Division of Emergency
140140 Management; and
141141 (6) a representative of transmission and distribution
142142 utilities appointed by the chief of the Texas Division of Emergency
143143 Management.
144144 (b) The Texas Division of Emergency Management shall
145145 designate a member of the security commission to serve as presiding
146146 officer.
147147 (c) The security commission shall convene at the call of the
148148 presiding officer.
149149 (d) The security commission shall report to the chief of the
150150 Texas Division of Emergency Management.
151151 (e) A vacancy on the security commission is filled by
152152 appointment for the unexpired term in the same manner as the
153153 original appointment.
154154 (f) To the extent possible, individuals appointed to the
155155 security commission must be residents of this state.
156156 (g) The chief of the Texas Division of Emergency Management
157157 may invite officials or former officials of the United States
158158 Department of Defense or Department of Homeland Security with
159159 expertise on electromagnetic pulse defense to advise the security
160160 commission.
161161 (h) The presiding officer of the security commission or the
162162 chief of the Texas Division of Emergency Management may invite to
163163 advise the security commission any person whose expertise the
164164 security commission considers necessary to carry out the purposes
165165 of this chapter, including individuals recognized as experts in the
166166 fields of law enforcement, emergency services, communications,
167167 water and sewer services, health care, financial services,
168168 agriculture, transportation, electricity markets, cybersecurity of
169169 grid control systems, electromagnetic pulse mitigation,
170170 terrestrial and solar weather, and micro-grids.
171171 Sec. 44.003. GRID RESILIENCE INFORMATION. (a) Each of the
172172 following members of the security commission shall apply for a
173173 secret security clearance or an interim secret security clearance
174174 to be granted by the federal government:
175175 (1) the representative of the independent
176176 organization certified under Section 39.151 for the ERCOT power
177177 region;
178178 (2) the representative of the Texas Division of
179179 Emergency Management; and
180180 (3) the representative of the commission.
181181 (b) A member of the security commission listed under
182182 Subsection (a) who is granted an applicable security clearance
183183 under that subsection is a member of the information security
184184 working group.
185185 (c) The information security working group shall determine:
186186 (1) which information created or obtained by the
187187 security commission is confidential;
188188 (2) which members of the security commission may
189189 access which types of information received by the security
190190 commission; and
191191 (3) which members, other than members of the working
192192 group, should apply for a secret security clearance or interim
193193 clearance granted by the federal government.
194194 (d) Information that the information security working group
195195 determines is confidential under Subsection (c) shall be stored and
196196 maintained by the independent organization certified under Section
197197 39.151 for the ERCOT power region.
198198 (e) The security commission must maintain a reasonable
199199 balance between public transparency and security for information
200200 determined to be confidential under Subsection (c).
201201 (f) Confidential information created or obtained by the
202202 security commission is not subject to disclosure under Chapter 552,
203203 Government Code.
204204 (g) A meeting of the security commission that involves the
205205 discussion of confidential information is not subject to Chapter
206206 551, Government Code.
207207 Sec. 44.004. GRID RESILIENCE EVALUATION. (a) The security
208208 commission shall evaluate, using available information on past
209209 power outages in ERCOT, all hazards to the ERCOT electric grid,
210210 including threats that can cause future outages. The security
211211 commission shall evaluate the resilience of municipalities in this
212212 state in the following essential areas:
213213 (1) emergency services;
214214 (2) communications systems;
215215 (3) water and sewer services;
216216 (4) health care systems;
217217 (5) financial services;
218218 (6) energy systems, including whether energy,
219219 electric power, and fuel supplies are protected and available for
220220 recovery in the event of a catastrophic power outage; and
221221 (7) transportation systems.
222222 (b) The security commission may create groups to identify
223223 and address each hazard as necessary. The security commission must
224224 assess each hazard both on the likelihood of occurrence of the
225225 hazard and the potential consequences of the hazard.
226226 (c) The security commission shall identify methods by which
227227 this state can support an overall national deterrence policy as
228228 proposed by the United States Cyberspace Solarium Commission,
229229 including by:
230230 (1) identifying means to ensure that measures taken to
231231 increase resilience of electric utilities against all hazards
232232 support critical national security functions in this state; and
233233 (2) engaging the Texas National Guard to be trained as
234234 first responders to cybersecurity threats to the ERCOT electric
235235 grid and other critical infrastructure.
236236 (d) The security commission shall evaluate nuclear
237237 generation sites in this state, the resilience of each nuclear
238238 reactor to all hazards, and the resilience to all hazards of
239239 off-site power for critical safety systems that support the reactor
240240 and spent fuel. The security commission may communicate with the
241241 Nuclear Regulatory Commission to accomplish the evaluation.
242242 (e) The security commission shall evaluate current Critical
243243 Infrastructure Protection standards established by the North
244244 American Electric Reliability Corporation and standards set by the
245245 National Institute of Standards and Technology to determine the
246246 most appropriate standards for protecting grid infrastructure in
247247 this state.
248248 (f) The security commission shall investigate the steps
249249 that local communities and other states have taken to address grid
250250 resilience. The security commission may request funding from the
251251 Texas Division of Emergency Management to conduct site visits to
252252 these locations as required.
253253 (g) The security commission shall identify universities
254254 based in this state that have expertise in cybersecurity and other
255255 matters that can contribute to the security commission's goal of
256256 mitigating all hazards to the grid in this state.
257257 (h) In carrying out the security commission's duties under
258258 this section, the security commission may solicit information from:
259259 (1) defense contractors with experience protecting
260260 defense systems from electromagnetic pulses;
261261 (2) electric utilities that have developed
262262 electromagnetic pulse protections for the utilities' grid assets;
263263 (3) the United States Department of Homeland Security;
264264 and
265265 (4) the Commission to Assess the Threat to the United
266266 States from Electromagnetic Pulse (EMP) Attack.
267267 Sec. 44.005. RESILIENCE STANDARDS. (a) Based on the
268268 findings of the evaluations and investigations conducted under
269269 Section 44.004, the security commission shall consider and
270270 recommend resilience standards for municipalities and critical
271271 components of the ERCOT electric grid.
272272 (b) Standards considered and recommended for energy systems
273273 of municipalities should include provisions to ensure that energy,
274274 electric power, and fuel supplies are protected and available for
275275 recovery in the event of a catastrophic power outage.
276276 (c) Not later than October 1, 2026, the security commission
277277 shall prepare and deliver a report to the legislature on the
278278 recommended resilience standards required under this section and an
279279 anticipated timeline for implementation of the standards.
280280 Sec. 44.006. MICRO-GRIDS. The security commission shall
281281 recommend resilience standards for micro-grids. The standards must
282282 be developed for both alternating current and direct current.
283283 Sec. 44.007. PLAN FOR ALL HAZARDS RESILIENCE. (a) Not
284284 later than October 1, 2026, the security commission shall prepare
285285 and deliver to the legislature a plan for protecting the ERCOT
286286 electric grid from all hazards, including a catastrophic loss of
287287 power in the state.
288288 (b) The plan must include:
289289 (1) any weatherization requirements in addition to
290290 requirements established under Section 35.0021 necessary to
291291 prevent power outages from extreme cold weather events, an analysis
292292 of whether these requirements would induce cyber vulnerabilities,
293293 and an analysis of the associated costs for these requirements;
294294 (2) provisions for installing, replacing, or
295295 upgrading industrial control systems and associated networks, or
296296 the use of compensating controls or procedures, in critical
297297 facilities to address cyber vulnerabilities;
298298 (3) provisions for installing, replacing, or
299299 upgrading extra high-voltage power transformers and supervisory
300300 control and data acquisition systems to withstand 100
301301 kilovolts/meter E1 electromagnetic pulses and 85 volts/kilometer
302302 E3 electromagnetic pulses;
303303 (4) a timeline for making improvements to remaining
304304 infrastructure to meet resilience standards adopted by the security
305305 commission under Section 44.005;
306306 (5) long-term resilience provisions for supporting
307307 industries including:
308308 (A) communications;
309309 (B) food supply;
310310 (C) fuel supply;
311311 (D) health care;
312312 (E) nuclear reactors, materials, and waste;
313313 (F) transportation; and
314314 (G) water and sewer services; and
315315 (6) any additional provisions considered necessary by
316316 the security commission.
317317 (c) The security commission may consult with the Private
318318 Sector Advisory Council in developing the plan.
319319 Sec. 44.008. GRID RESILIENCE REPORT. (a) Not later than
320320 January 1 of each year, the security commission shall prepare and
321321 deliver a nonclassified report to the legislature, the governor,
322322 and the commission assessing natural and man-made threats to the
323323 electric grid and efforts to mitigate the threats.
324324 (b) The security commission shall make the report available
325325 to the public.
326326 (c) In preparing the report, the security commission may
327327 hold confidential or classified briefings with federal, state, and
328328 local officials as necessary.
329329 SECTION 3. This Act takes effect immediately if it receives
330330 a vote of two-thirds of all the members elected to each house, as
331331 provided by Section 39, Article III, Texas Constitution. If this
332332 Act does not receive the vote necessary for immediate effect, this
333333 Act takes effect September 1, 2025.