89R11957 CS-D
 
  By: Parker S.B. No. 1740
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the protection of critical components of the electric
  grid from damage from electromagnetic threats.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle B, Title 2, Utilities Code, is amended
  by adding Chapter 44 to read as follows:
  CHAPTER 44. GRID RESILIENCE
         Sec. 44.001.  DEFINITION. In this chapter, "EMP Commission
  reports" means all reports released by the Commission to Assess the
  Threat to the United States from Electromagnetic Pulse (EMP)
  Attack, including the July 2017 report titled "Recommended E3 HEMP
  Heave Electric Field Waveform for the Critical Infrastructures."
         Sec. 44.002.  CRITICAL COMPONENT RESILIENCE. The commission
  shall:
               (1)  identify critical components of the ERCOT electric
  grid vulnerable to an electromagnetic pulse or a geomagnetic
  disturbance, such as components of substations, control centers,
  large power transformers, generators, high voltage breakers, or
  downstream equipment; 
               (2)  evaluate EMP Commission reports for potential
  application to critical electric grid infrastructure in ERCOT; and
               (3)  by rule require that all high-capacity generation
  substations and large power transformers in ERCOT constructed or
  installed after September 1, 2025, be designed in accordance with
  applicable standards proposed in EMP Commission reports, including
  any applicable requirements for withstanding 50 kilovolts/meter E1
  electromagnetic pulses and 85 volts/kilometer E3 electromagnetic
  pulses.
         Sec. 44.003.  GRANT PROGRAM FOR UPGRADES TO CRITICAL
  COMPONENTS. (a)  The commission shall establish a grant program for
  the public purpose of funding protective upgrades to critical
  components identified under Section 44.002(1) that are at risk of
  failure in the event of electromagnetic threats to ensure the
  components can withstand 50 kilovolts/meter E1 electromagnetic
  pulses and 85 volts/kilometer E3 electromagnetic pulses.
         (b)  An entity that owns or operates a component identified
  by the commission under Section 44.002(1) may apply to the
  commission for a grant under this section.
         (c)  An entity that receives a grant under this section may
  not recover under Section 38.078 costs paid by the grant.
         Sec. 44.004.  ELECTROMAGNETIC PULSE PROTECTION AND
  RESILIENCE ACCOUNT. The electromagnetic pulse protection and
  resilience account is created as an account in the general revenue
  fund. The commission shall administer the account.  Distributions
  from the account may be used only for furthering the purposes of
  this chapter and commission duties under this chapter. The account
  is composed of:
               (1)  money the legislature appropriates to the account;
  and
               (2)  gifts, grants, and other donations the commission
  receives for the account.
         Sec. 44.005.  BIENNIAL REVIEW. Biennially, the commission
  shall:
               (1)  conduct a review of the grant program established
  under Section 44.003 to evaluate the cost of the program and the
  benefits to the public of increased protection and resiliency of
  the electric grid as a result of improvements to critical
  components; and
               (2)  submit a report to the legislature on the
  commission's findings after the review conducted under Subdivision
  (1).
         SECTION 2.  Section 38.078(b), Utilities Code, as added by
  Chapter 836 (H.B. 2555), Acts of the 88th Legislature, Regular
  Session, 2023, is amended to read as follows:
         (b)  An electric utility may file, in a manner authorized by
  commission rule, a plan to enhance the resiliency of the utility's
  transmission and distribution system through at least one of the
  following methods:
               (1)  hardening electrical transmission and
  distribution facilities, including against electromagnetic
  threats;
               (2)  modernizing electrical transmission and
  distribution facilities;
               (3)  undergrounding certain electrical distribution
  lines;
               (4)  lightning mitigation measures;
               (5)  flood mitigation measures;
               (6)  information technology;
               (7)  cybersecurity measures;
               (8)  physical security measures;
               (9)  vegetation management; or
               (10)  wildfire mitigation and response.
         SECTION 3.  This Act takes effect September 1, 2025.