SB1740 - Relating to the protection of critical components of the electric grid from damage from electromagnetic threats.

  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.