False Foreign-Tie Info To ERCOT Could Cost $1M Per Violation

The text as introduced · 662 words

89R12075 SCR-D

By: Patterson
H.B. No. 4378

A BILL TO BE ENTITLED

AN ACT

relating to affiliation with certain foreign entities of certain

persons working or participating in the electricity market;

increasing an administrative penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 15.023, Utilities Code, is amended by

adding Subsection (b-2) to read as follows:

(b-2) Notwithstanding Subsection (b), the penalty for a

violation of Section 39.360 in which a business entity submitted

false or incomplete information to the independent organization

certified under Section 39.151 for the ERCOT power region may be in

an amount not to exceed $1 million for each violation.

SECTION 2. Section 39.360, Utilities Code, as added by

Chapter 464 (S.B. 2013), Acts of the 88th Legislature, Regular

Session, 2023, is amended by amending Subsections (a), (b), (c),

(d), and (e) and adding Subsections (d-1) and (j) to read as

follows:

(a) In this section, "company" and "critical

infrastructure" have the meanings assigned by Section 117.001

[ 113.001 ], Business & Commerce Code[ , as added by Chapter 975 (S.B.

2116), Acts of the 87th Legislature, Regular Session, 2021 ].

(b) An independent organization certified under Section

39.151 may not register a business entity as a market participant or

maintain the registration of a business entity to operate as a

market participant in the power region for which the independent

organization is certified unless the business entity attests that

the entity complies with Chapter 117 [ 113 ], Business & Commerce

Code[ , as added by Chapter 975 (S.B. 2116), Acts of the 87th

Legislature, Regular Session, 2021 ].

(c) An independent organization certified under Section

39.151 shall require as a condition of operating as a market

participant in the power region for which the independent

organization is certified that a business entity report to the

independent organization the purchase of any critical electric grid

equipment or service from a company described by Section

117.002(a)(2) [ 113.002(a)(2) ], Business & Commerce Code[ , as added

by Chapter 975 (S.B. 2116), Acts of the 87th Legislature, Regular

Session, 2021 ].

(d) For each purchase reported by a business entity under

Subsection (c), the business entity shall submit an attestation to

the independent organization that the purchase will not result in

access to or control of its critical electric grid equipment by a

company described by Section 117.002(a)(2) [ 113.002(a)(2) ],

Business & Commerce Code, [ as added by Chapter 975 (S.B. 2116), Acts

of the 87th Legislature, Regular Session, 2021, ] excluding access

specifically allowed by the business entity for product warranty

and support purposes.

(d-1) An independent organization certified under Section

39.151 may:

(1) require as a condition of market participant

registration that a business entity provide the independent

organization with additional information to confirm the accuracy of

an attestation or report required under Subsection (b), (c), or

(d); and

(2) disclose information received under Subdivision

(1) to the attorney general or the commission.

(e) Notwithstanding any other law, an independent

organization certified under Section 39.151 may immediately

suspend or terminate a business entity's [ company's ] registration

as a market participant or access to any of the independent

organization's systems if the independent organization has a

reasonable suspicion that the business entity is a company [ meets

any of the criteria ] described by Section 2275.0102(a)(2)

[ 2274.0102(a)(2) ], Government Code[ , as added by Chapter 975 (S.B.

2116), Acts of the 87th Legislature, Regular Session, 2021 ].

(j) The attorney general may investigate the accuracy or

sufficiency of information provided under this section to an

independent organization certified under Section 39.151 and

disclose any new information obtained in relation to the

investigation to the independent organization or the commission.

SECTION 3. To the extent of any conflict, this Act prevails

over another Act of the 89th Legislature, Regular Session, 2025,

relating to nonsubstantive additions to and corrections in enacted

codes.

SECTION 4. This Act takes effect September 1, 2025.