Texas Senate Bill SB2368

Texas 2025 - 89th Regular

• Filed: 3/12/25
• Out of Senate Committee: 4/9/25
• Voted on by Senate: 4/22/25
• Out of House Committee: 5/19/25
• Voted on by House: 5/28/25
• Governor Action: 6/20/25

Caption

Relating to critical infrastructure and utilities, including affiliation with certain foreign entities of certain persons working or participating in the electricity market; authorizing and increasing administrative penalties.

Impact

If enacted, SB 2368 will significantly enhance the regulatory framework governing the Texas electricity market by explicitly regulating business agreements with foreign entities. The proposed changes aim to strengthen the security of the electric grid and ensure that critical infrastructure remains protected from foreign influence. This could lead to more stringent oversight of existing business practices and a higher standard of security protocols for those involved in the sector, thereby impacting how utilities and independent operators interact with their supplies and equipment.

Summary

Senate Bill 2368 addresses issues related to critical infrastructure and utilities in Texas, specifically focusing on affiliations with foreign entities among individuals working in or participating in the electricity market. The bill empowers the Public Utility Commission of Texas to impose administrative penalties of up to $1 million for violations concerning agreements that grant access to critical electric grid equipment or infrastructure. Additionally, the bill places an emphasis on enforcing compliance with regulations surrounding the security and operational integrity of these critical systems.

Sentiment

The sentiment surrounding SB 2368 appears to be largely supportive from legislative members, with a unanimous vote of 138-0 in the House indicating strong bipartisan backing. Advocates emphasize the importance of safeguarding Texas' critical infrastructure against potential threats, particularly in light of increasing global competition and security concerns. However, there may also be underlying concerns about the feasibility of such stringent regulations for smaller entities within the industry that may struggle to comply with the elevated standards.

Contention

Despite its broad support, there are potential points of contention regarding the applicability and enforcement of the new regulations. Some industry stakeholders might argue that increased scrutiny and penalties could create barriers to entry for new market participants or strain existing businesses that struggle to comply with the heightened reporting and compliance requirements. This could lead to a pushback from certain economic factions that rely on a more lenient regulatory environment to foster innovation and competition within the state's electricity market.

Texas Constitutional Statutes Affected

Utilities Code

• Chapter 15. Judicial Review, Enforcement, And Penalties
  • Section: 023
  • Section: 023
  • Section: 023
  • Section: 023
  • Section: 023
  • Section: New Section

• Chapter 39. Restructuring Of Electric Utility Industry
  • Section: 151
  • Section: 360
  • Section: 360
  • Section: 360
  • Section: 151
  • Section: 360
  • Section: 360

Government Code

• Chapter 2275. Prohibition On Contracts With Certain Foreign-owned Companies In Connection With Critical Infrastructure
  • Section: 0102
  • Section: 0102