Hall Grid Equipment Bill Bars China-Tied Gear From ERCOT

The text as introduced · 711 words

89R5750 JXC-D

By: Hall
S.B. No. 934

A BILL TO BE ENTITLED

AN ACT

relating to the installation and repair of critical electric grid

equipment purchased from certain companies and nonprofit

organizations.

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

SECTION 1. 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 Subsection (b-1) 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 or maintain the

registration of a business entity to operate 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 ].

(b-1) The commission by rule shall prohibit:

(1) the installation in or on an interconnected

facility in the ERCOT power region after December 31, 2025, by a

business entity of any critical electric grid equipment purchased

from a company described by Section 117.002(a)(2), Business &

Commerce Code, a nonprofit organization organized under the laws of

China, Iran, North Korea, or Russia, or a nonprofit organization

organized under the laws of a country designated under Section

117.003, Business & Commerce Code; and

(2) except in an emergency, the repair after December

31, 2025, of critical electric grid equipment interconnected in the

ERCOT power region using critical electric grid equipment purchased

from a company described by Section 117.002(a)(2), Business &

Commerce Code, a nonprofit organization organized under the laws of

China, Iran, North Korea, or Russia, or a nonprofit organization

organized under the laws of a country designated under Section

117.003, Business & Commerce Code.

(c) An independent organization certified under Section

39.151 shall require as a condition of operating 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 , a nonprofit organization organized under the laws of

China, Iran, North Korea, or Russia, or a nonprofit organization

organized under the laws of a country designated under Section

117.003, 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 :

(1) access to or control of its critical electric grid

equipment by the [ a ] company or nonprofit organization [ described

by Section 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 ; or

(2) conduct prohibited by the commission under

Subsection (b-1) .

(e) Notwithstanding any other law, an independent

organization certified under Section 39.151 may immediately

suspend or terminate a company's registration or access to any of

the independent organization's systems if the independent

organization has a reasonable suspicion that the 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 ].

SECTION 2. 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 3. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.