The bill would create the Texas Grid Security Commission, to be composed of representatives of several state agencies, power generation companies, transmission and distribution utilities, and certain other individuals with expertise in various fields.
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 to conduct site visits to these locations, as required. Based on the findings of these evaluations, the security commission would be required to develop and adopt resilience standards for municipalities and critical components of the ERCOT grid.
The bill would require the State Office of Risk Management (SORM), with assistance from the security commission, to select contractors to identify critical systems and components of the ERCOT grid vulnerable to hazards. An entity that owned or operated a component identified as critical would be required to upgrade the component. SORM would be required to select contractors to verify whether an entity had upgraded its components as required.
The bill would require the security commission, by January 1, 2024, 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 a regulatory authority, in establishing the rates of an electric utility, to include consideration of the costs incurred to install, replace, or upgrade facilities or equipment to meet a resilience standard.
The bill would require the security commission to establish resilience standards for micro-grids and certify a micro-grid that met those standards.
The bill would require the Public Utility Commission (PUC) and the Railroad Commission (RRC) to establish certain rules relating to the provisions of the bill. PUC and RRC could impose an administrative penalty on an entity subject to each agency's respective jurisdiction for a violation of a resilience standard.