SB 1740

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:
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
(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
(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
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
(1)  money the legislature appropriates to the account;
(2)  gifts, grants, and other donations the commission
Sec. 44.005.  BIENNIAL REVIEW.  Biennially, the commission
(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
(2)  submit a report to the legislature on the
commission's findings after the review conducted under Subdivision
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
(1)  hardening electrical transmission and
distribution facilities, including against electromagnetic
(2)  modernizing electrical transmission and
(3)  undergrounding certain electrical distribution
(4)  lightning mitigation measures;
(5)  flood mitigation measures;
(8)  physical security measures;
(10)  wildfire mitigation and response.
SECTION 3.  This Act takes effect September 1, 2025.