Tex.
Utils. Code Section 39.360
Transactions with Certain Foreign-owned Companies in Connection with Critical Infrastructure
(a)
In this section, “company” and “critical infrastructure” have the meanings assigned by Section 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 (Essential Organizations) 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 113 (Peer-to-peer Car Sharing Programs), 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 (Essential Organizations) 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 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 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.(e)
Notwithstanding any other law, an independent organization certified under Section 39.151 (Essential Organizations) 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 2274.0102(a)(2), Government Code, as added by Chapter 975 (S.B. 2116), Acts of the 87th Legislature, Regular Session, 2021.(f)
A contractual provision that limits or contradicts Subsection (e) is contrary to public policy and is unenforceable and void.(g)
An independent organization certified under Section 39.151 (Essential Organizations) may adopt guidelines or procedures relating to the requirements in this section, including the qualification of electric grid equipment or services as critical.(h)
The commission shall adopt any rules necessary to administer this section or authorize an independent organization to carry out a duty imposed by this section.(i)
The attorney general may conduct periodic audits of the attestations required by Subsection (d) and may prioritize the audits as necessary to protect critical infrastructure.(1)
“Virtual currency” has the meaning assigned by Section 12.001 (Definition), Business & Commerce Code.(2)
“Virtual currency mining facility” means a facility that uses electronic equipment to add virtual currency transactions to a distributed ledger.(b)
The commission by rule shall require a person operating a virtual currency mining facility who enters into an agreement for retail electric service in the ERCOT power region to register the facility receiving service as a large flexible load under this section if:(1)
the facility requires a total load of more than 75 megawatts; and(2)
the facility load is interruptible.(c)
The rules must require a person described by Subsection (b) to:(1)
register the large flexible load with the commission not later than one business day after the date the agreement begins; and(2)
provide the commission with:(A)
the location of the facility; and(B)
the anticipated demand from the facility for the five-year period beginning on the date of the registration.(d)
The commission by rule shall:(1)
adopt criteria for determining whether a load is interruptible for the purposes of this section based on whether it is possible for the facility operator to choose to interrupt the load; and(2)
establish a method to ensure compliance with this section.(e)
The commission may share with an independent organization certified under Section 39.151 (Essential Organizations) registration information received under this section.
Source:
Section 39.360 — Transactions with Certain Foreign-owned Companies in Connection with Critical Infrastructure, https://statutes.capitol.texas.gov/Docs/UT/htm/UT.39.htm#39.360 (accessed Jun. 5, 2024).
