89R5750 JXC-D
By: Hall S.B. No. 934
A BILL TO BE ENTITLED
AN ACT
relating to the installation and repair of critical electric grid
equipment purchased from certain companies and nonprofit
organizations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 39.360, Utilities Code, as added by
Chapter 464 (S.B. 2013), Acts of the 88th Legislature, Regular
Session, 2023, is amended by amending Subsections (a), (b), (c),
(d), and (e) and adding Subsection (b-1) to read as follows:
(a) In this section, "company" and "critical
infrastructure" have the meanings assigned by Section 117.001
[113.001], Business & Commerce Code[, as added by Chapter 975 (S.B.
2116), Acts of the 87th Legislature, Regular Session, 2021].
(b) An independent organization certified under Section
39.151 may not register a business entity or maintain the
registration of a business entity to operate in the power region for
which the independent organization is certified unless the business
entity attests that the entity complies with Chapter 117 [113],
Business & Commerce Code[, as added by Chapter 975 (S.B. 2116), Acts
of the 87th Legislature, Regular Session, 2021].
(b-1) The commission by rule shall prohibit:
(1) the installation in or on an interconnected
facility in the ERCOT power region after December 31, 2025, by a
business entity of any critical electric grid equipment purchased
from a company described by Section 117.002(a)(2), Business &
Commerce Code, a nonprofit organization organized under the laws of
China, Iran, North Korea, or Russia, or a nonprofit organization
organized under the laws of a country designated under Section
117.003, Business & Commerce Code; and
(2) except in an emergency, the repair after December
31, 2025, of critical electric grid equipment interconnected in the
ERCOT power region using critical electric grid equipment purchased
from a company described by Section 117.002(a)(2), Business &
Commerce Code, a nonprofit organization organized under the laws of
China, Iran, North Korea, or Russia, or a nonprofit organization
organized under the laws of a country designated under Section
117.003, Business & Commerce Code.
(c) An independent organization certified under Section
39.151 shall require as a condition of operating in the power region
for which the independent organization is certified that a business
entity report to the independent organization the purchase of any
critical electric grid equipment or service from a company
described by Section 117.002(a)(2) [113.002(a)(2)], Business &
Commerce Code, a nonprofit organization organized under the laws of
China, Iran, North Korea, or Russia, or a nonprofit organization
organized under the laws of a country designated under Section
117.003, Business & Commerce Code[, as added by Chapter 975 (S.B.
2116), Acts of the 87th Legislature, Regular Session, 2021].
(d) For each purchase reported by a business entity under
Subsection (c), the business entity shall submit an attestation to
the independent organization that the purchase will not result in:
(1) access to or control of its critical electric grid
equipment by the [a] company or nonprofit organization [described
by Section 113.002(a)(2), Business & Commerce Code, as added by
Chapter 975 (S.B. 2116), Acts of the 87th Legislature, Regular
Session, 2021], excluding access specifically allowed by the
business entity for product warranty and support purposes; or
(2) conduct prohibited by the commission under
Subsection (b-1).
(e) Notwithstanding any other law, an independent
organization certified under Section 39.151 may immediately
suspend or terminate a company's registration or access to any of
the independent organization's systems if the independent
organization has a reasonable suspicion that the company meets any
of the criteria described by Section 2275.0102(a)(2)
[2274.0102(a)(2)], Government Code[, as added by Chapter 975 (S.B.
2116), Acts of the 87th Legislature, Regular Session, 2021].
SECTION 2. To the extent of any conflict, this Act prevails
over another Act of the 89th Legislature, Regular Session, 2025,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.