By: Toth H.B. No. 3716
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the regulation of bulk-power system equipment by the
  Public Utility Commission of Texas.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 32, Utilities Code, is amended by adding
  Subchapter D to read as follows:
  SUBCHAPTER D. BULK-POWER SYSTEM TRANSACTIONS
         Sec. 32.151.  DEFINITIONS. In this subchapter:
               (1)  "Bulk-power system" means:
                     (A)  the facilities and control systems necessary
  for operating an interconnected electric energy transmission
  network or a portion of a network, other than:
                           (i)  transmission lines rated at less than
  69,000 volts; and
                           (ii)  facilities used in the local
  distribution of electric energy; and
                     (B)  electric energy from generation facilities
  needed to maintain transmission reliability.
               (2)  "Bulk-power system equipment" means items used in
  bulk-power system substations, control rooms, or power generating
  stations, including reactors, capacitors, substation transformers,
  current coupling capacitors, large generators, backup generators,
  substation voltage regulators, shunt capacitor equipment,
  automatic circuit reclosers, instrument transformers, coupling
  capacity voltage transformers, protective relaying, metering
  equipment, high voltage circuit breakers, generation turbines,
  industrial control systems, distributed control systems, and
  safety instrumented systems.
         Sec. 32.152.  BULK-POWER SYSTEM TRANSACTIONS. (a) The
  commission by rule shall prohibit the acquisition, importation,
  transfer, or installation of bulk-power system equipment in this
  state as part of a transaction that the commission determines
  presents an undue security or safety risk to the bulk-power system
  in this state because of potential:
               (1)  sabotage to or subversion of the design,
  integrity, manufacturing, production, distribution, installation,
  operation, or maintenance of the bulk-power system in this state;
  or
               (2)  catastrophic effects for the security or
  resiliency of critical infrastructure or the economy of this state.
         (b)  The commission shall:
               (1)  design or negotiate measures to mitigate risks
  described by Subsection (a); and
               (2)  require that a person acquiring, importing,
  transferring, or installing bulk-power system equipment in this
  state incorporate a mitigation measure in the acquisition,
  importation, transfer, or installation.
         (c)  The commission shall no later than September 1, 2022:
               (1)  establish and publish criteria for pre-approving
  particular equipment and particular vendors in the bulk-power
  system equipment market as compliant with this section; and
               (2)  publish a list of pre-approved equipment and
  vendors.
         SECTION 2.  Subchapter D, Chapter 32, Utilities Code, as
  added by this Act, applies only to a contract for the acquisition,
  importation, transfer, or installation of bulk-power system
  equipment entered into on or after the effective date of this Act.
         SECTION 3.  This Act takes effect September 1, 2021.