Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2024	($462,814)
2025	($462,814)
2026	($462,814)
2027	($462,814)
2028	($462,814)

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1	Change in Number of State Employees from FY 2023
2024	($462,814)	4.0
2025	($462,814)	4.0
2026	($462,814)	4.0
2027	($462,814)	4.0
2028	($462,814)	4.0

The bill would create the Texas Grid Security Commission, to be composed of representatives of several state agencies, power generation companies, and transmission and distribution utilities.

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 security commission, by October 1, 2024, to prepare and deliver a report to the legislature on the development of resilience standards and a recommended timeline for implementation. By that date, the security commission would also have 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.

The Public Utility Commission estimates that, to implement the provisions of the bill, the agency would need to hire staff to complete the evaluation, standards, plan, report, and rulemaking, and to establish penalties. The 4.0 additional FTEs include 1.0 Engineer III ($75,000 per fiscal year); 1.0 Program Specialist, who would be a subject matter expert in critical infrastructure security risk management ($90,000 per fiscal year); 1.0 Legal/Rules Attorney III ($90,000 per fiscal year); and 1.0 Investigation/Enforcement Attorney ($90,000 per fiscal year). The agency also anticipates costs for equipment and employee benefits. In total, the fiscal impact would be $462,814 each fiscal year.

It is assumed that any costs to other agencies to implement the provisions of the bill could be absorbed using existing resources.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION


April 18, 2023

TO:	Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB330 by Hall (relating to the resilience of the electric grid and certain municipalities; authorizing an administrative penalty.), Committee Report 1st House, Substituted