Parker Grid Bill Pays Owners To Harden Against Solar Storms

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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.