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A BILL TO BE ENTITLED
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AN ACT
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relating to the installation and repair of critical electric grid |
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equipment purchased from certain companies and nonprofit |
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organizations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 39.360, Utilities Code, as added by |
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Chapter 464 (S.B. 2013), Acts of the 88th Legislature, Regular |
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Session, 2023, is amended by amending Subsections (a), (b), (c), |
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(d), and (e) and adding Subsection (b-1) to read as follows: |
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(a) In this section, "company" and "critical |
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infrastructure" have the meanings assigned by Section 117.001 |
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[113.001], Business & Commerce Code[, as added by Chapter 975 (S.B. |
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2116), Acts of the 87th Legislature, Regular Session, 2021]. |
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(b) An independent organization certified under Section |
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39.151 may not register a business entity or maintain the |
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registration of a business entity to operate in the power region for |
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which the independent organization is certified unless the business |
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entity attests that the entity complies with Chapter 117 [113], |
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Business & Commerce Code[, as added by Chapter 975 (S.B. 2116), Acts |
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of the 87th Legislature, Regular Session, 2021]. |
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(b-1) The commission by rule shall prohibit: |
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(1) the installation in or on an interconnected |
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facility in the ERCOT power region after December 31, 2025, by a |
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business entity of any critical electric grid equipment purchased |
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from a company described by Section 117.002(a)(2), Business & |
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Commerce Code, a nonprofit organization organized under the laws of |
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China, Iran, North Korea, or Russia, or a nonprofit organization |
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organized under the laws of a country designated under Section |
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117.003, Business & Commerce Code; and |
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(2) except in an emergency, the repair after December |
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31, 2025, of critical electric grid equipment interconnected in the |
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ERCOT power region using critical electric grid equipment purchased |
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from a company described by Section 117.002(a)(2), Business & |
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Commerce Code, a nonprofit organization organized under the laws of |
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China, Iran, North Korea, or Russia, or a nonprofit organization |
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organized under the laws of a country designated under Section |
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117.003, Business & Commerce Code. |
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(c) An independent organization certified under Section |
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39.151 shall require as a condition of operating in the power region |
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for which the independent organization is certified that a business |
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entity report to the independent organization the purchase of any |
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critical electric grid equipment or service from a company |
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described by Section 117.002(a)(2) [113.002(a)(2)], Business & |
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Commerce Code, a nonprofit organization organized under the laws of |
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China, Iran, North Korea, or Russia, or a nonprofit organization |
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organized under the laws of a country designated under Section |
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117.003, Business & Commerce Code[, as added by Chapter 975 (S.B. |
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2116), Acts of the 87th Legislature, Regular Session, 2021]. |
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(d) For each purchase reported by a business entity under |
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Subsection (c), the business entity shall submit an attestation to |
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the independent organization that the purchase will not result in: |
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(1) access to or control of its critical electric grid |
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equipment by the [a] company or nonprofit organization [described |
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by Section 113.002(a)(2), Business & Commerce Code, as added by |
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Chapter 975 (S.B. 2116), Acts of the 87th Legislature, Regular |
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Session, 2021], excluding access specifically allowed by the |
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business entity for product warranty and support purposes; or |
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(2) conduct prohibited by the commission under |
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Subsection (b-1). |
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(e) Notwithstanding any other law, an independent |
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organization certified under Section 39.151 may immediately |
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suspend or terminate a company's registration or access to any of |
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the independent organization's systems if the independent |
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organization has a reasonable suspicion that the company meets any |
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of the criteria described by Section 2275.0102(a)(2) |
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[2274.0102(a)(2)], Government Code[, as added by Chapter 975 (S.B. |
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2116), Acts of the 87th Legislature, Regular Session, 2021]. |
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SECTION 2. To the extent of any conflict, this Act prevails |
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over another Act of the 89th Legislature, Regular Session, 2025, |
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relating to nonsubstantive additions to and corrections in enacted |
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codes. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |