HB 3568

relating to the interconnection of wind or solar power facilities
that use critical electric grid equipment purchased from certain
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 39.002, Utilities Code, is amended to
Sec. 39.002.  APPLICABILITY.  This chapter, other than
Sections 39.151, 39.1516, 39.155, 39.157(e), 39.161, 39.162,
39.163, 39.203, 39.360(f-1), 39.9051, 39.9052, and 39.914(e), and
Subchapters M and N, does not apply to a municipally owned utility
or an electric cooperative.  Sections 39.157(e) and 39.203 apply
only to a municipally owned utility or an electric cooperative that
is offering customer choice.  If there is a conflict between the
specific provisions of this chapter and any other provisions of
this title, except for Chapters 40 and 41, the provisions of this
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 Subsection (f-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].
(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[, 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
(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].
(f-1)  The commission by rule shall require as a condition of
interconnecting after September 1, 2025, a wind power facility, as
defined by Section 301.0001, or a solar power facility, as defined
by Section 302.0001, used to sell energy at wholesale, by an
electric cooperative, municipally owned utility, or power
generation company that the cooperative, utility, or company submit
an attestation that the facility does not use any critical electric
grid equipment purchased from a company described by Section
117.002(a)(2), Business & Commerce Code.
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
SECTION 4.  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.