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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of bulk-power system equipment by the |
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Public Utility Commission of Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 32, Utilities Code, is amended by adding |
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Subchapter D to read as follows: |
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SUBCHAPTER D. BULK-POWER SYSTEM TRANSACTIONS |
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Sec. 32.151. DEFINITIONS. In this subchapter: |
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(1) "Bulk-power system" means: |
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(A) the facilities and control systems necessary |
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for operating an interconnected electric energy transmission |
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network or a portion of a network, other than: |
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(i) transmission lines rated at less than |
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69,000 volts; and |
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(ii) facilities used in the local |
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distribution of electric energy; and |
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(B) electric energy from generation facilities |
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needed to maintain transmission reliability. |
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(2) "Bulk-power system equipment" means items used in |
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bulk-power system substations, control rooms, or power generating |
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stations, including reactors, capacitors, substation transformers, |
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current coupling capacitors, large generators, backup generators, |
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substation voltage regulators, shunt capacitor equipment, |
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automatic circuit reclosers, instrument transformers, coupling |
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capacity voltage transformers, protective relaying, metering |
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equipment, high voltage circuit breakers, generation turbines, |
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industrial control systems, distributed control systems, and |
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safety instrumented systems. |
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Sec. 32.152. BULK-POWER SYSTEM TRANSACTIONS. (a) The |
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commission by rule shall prohibit the acquisition, importation, |
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transfer, or installation of bulk-power system equipment in this |
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state that: |
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(1) was designed, developed, manufactured, or |
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supplied by persons owned by, controlled by, or subject to the |
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jurisdiction of China, Iran, Russia, or a country designated by the |
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governor as a threat to critical infrastructure under Section |
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113.003, Business & Commerce Code, as added by Chapter 975 (S.B. |
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2116), Acts of the 87th Legislature, Regular Session, 2021; or |
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(2) is part of a transaction that the commission |
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determines presents an undue security or safety risk to the |
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bulk-power system in this state because of potential: |
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(A) sabotage to or subversion of the design, |
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integrity, manufacturing, production, distribution, installation, |
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operation, or maintenance of the bulk-power system in this state; |
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or |
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(B) catastrophic effects for the security or |
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resiliency of critical infrastructure or the economy of this state. |
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(b) The commission shall: |
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(1) design or negotiate measures to mitigate risks |
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described by Subsection (a); and |
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(2) require that a person acquiring, importing, |
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transferring, or installing bulk-power system equipment in this |
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state incorporate a mitigation measure in the acquisition, |
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importation, transfer, or installation if the commission |
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determines that the measure is necessary to mitigate risks |
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described by Subsection (a). |
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(c) The commission shall: |
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(1) establish and publish criteria for pre-approving |
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particular equipment and particular vendors in the bulk-power |
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system equipment market as compliant with this section; and |
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(2) publish a list of pre-approved equipment and |
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vendors. |
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SECTION 2. Subchapter D, Chapter 32, Utilities Code, as |
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added by this Act, applies only to a contract for the acquisition, |
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importation, transfer, or installation of bulk-power system |
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equipment entered into on or after the effective date of this Act. |
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SECTION 3. It is the intent of the 88th Legislature, Regular |
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Session, 2023, that the amendments made by this Act be harmonized |
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with another Act of the 88th Legislature, Regular Session, 2023, |
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relating to nonsubstantive additions to and corrections in enacted |
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codes. |
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SECTION 4. This Act takes effect September 1, 2023. |