Meeting Summary - 04/01/2025 Senate Business & Commerce

▶️1 - *SB75 Hall | et al.

• Senator Hall introduced a committee substitute for SB75, focused on protecting Texas' electrical grid from natural and man-made threats.
• Electricity is viewed as essential, only secondary to air, as it supports water, fuel, and food supply.
• The bill has received bipartisan support, with a consistent emphasis on grid protection across legislative sessions.
• Recent developments include involvement from Texas Tech's Center for Pulsed Power and a report from the Texas Security Commission highlighting grid security as a top priority.
• Despite policy changes, the Texas electric grid remains vulnerable to cyber attacks, EMPs, and geomagnetic disturbances.
• The bill proposes a Texas Grid Security Commission under the Texas Department of Energy Management to evaluate and address grid vulnerabilities.
• Emphasis on creating a statewide resilience plan includes hardening infrastructure, developing resilience standards, and requiring oversight from the Public Utility Commission and other agencies.
• The bill aims to improve economic prosperity by ensuring grid reliability, which attracts businesses.
• Discussion included the necessity of prioritizing threats, such as EMPs versus other hazards like cyber attacks and weather events.
• Senator Hall highlighted that recent innovations have reduced costs for securing grid infrastructure, making it economically viable.

Panel 1

▶️1.1 - Lt. Col. Tommy Waller, Center For Security Policy, SB75

• Lt. Col. Tommy Waller recently retired from the US Marine Corps and serves as President and CEO of the Center for Security Policy
• He supports SB75, focusing on electric grid security with emphasis on electromagnetic spectrum threats
• Waller has briefed both the Trump and Biden administrations on these issues. Despite an executive order signed six years ago by President Trump on this matter, little progress has been made
• Waller participated in the US Air Force electromagnetic defense task force
• He asserts that the North American electric grid is certain to fail eventually due to solar weather but believes failure is preventable.
• Affordable and tested solutions exist to protect against solar weather threats
• SB75 allows Texas to evaluate threats and solutions, potentially leading where the federal government has not.

▶️Chuck DeVore, TPPF, SB75

• Chuck DeVore from the Texas Public Policy Foundation supports SB75.
• Discussion on the catastrophic effects of EMPs (Electromagnetic Pulses), both natural and manmade.
• Mention of neutral blocking devices as a solution, with a national cost of about $4 billion.
• In Texas, the expense would be about $20 per capita, totaling approximately $500 million.
• Emphasis on the affordability and efficacy of the proposed solutions to prevent destructive EMP effects.
• Reference to international tensions, specifically exercises around Taiwan by China, as a potential threat to the US grid system.
• Encouragement for prudent and proactive measures to secure the grid.

▶️Don Brown, Secure The Grid Coalition, SB75

• Don Brown, a retired engineer working with Secure the Grid Coalition, supports SB75 for addressing EMP and solar weather hazards through stakeholder collaboration.
• Highlights the need for a commission to expedite protection standards and solution costs.
• Describes the threat of electromagnetic pulses to electronics and transformers, urging for investment in neutral ground blockers and digital substations.
• Emphasizes that implementation would cost less than 80¢ per residential customer over 33 years.
• Stresses the lack of federal focus on EMP threats and the need for state-level action.
• Discusses the importance of state commission members having clearance to strategize and address grid sabotage threats.
• Acknowledges multiple grid threats including EMP, solar weather, sabotage, and cyber threats.
• Highlights issues with current standards from NERC and FERC using outdated data that underestimates solar storm threats.
• Debates the cost and feasibility of installing neutral blocking devices and the role of industries in self-initiating grid protection.
• Considers Texas buying and storing high voltage transformers domestically to avoid reliance on foreign manufacturers.
• Proposes involving power companies in implementing solutions and recovering costs to ensure efficiency.

Panel 2

▶️1.2 - Brian Lloyd, Oncor, SB75

• Oncor opposes SB75 but supports the goal of identifying high impact threats to the power grid.
• Agrees that the state should play a central coordinating role in addressing EMP and GMD threats.
• Expresses concern about the bill's narrow focus on transmission and distribution (T&D) assets.
• Believes the grid security committee in the bill could act as a second regulator, complicating regulation already provided by the federal government and the PUC.
• Mentions that Oncor's comprehensive system resiliency plan did not address EMP but covered various hazards including cyber and physical security.
• Cautions against having multiple energy regulators as witnessed in other states, which can be problematic.
• Suggests the bill may unintentionally make the power grid less secure by increasing insider threat vectors.
• Points out the limitation in manufacturing capacity for mandated grid retrofits, potentially affecting over a thousand transformers in Texas.
• A single vendor's limited production capacity poses challenges in meeting standards, with the vendor producing only 12 devices per year.
• Concerns about adopting new technology that could introduce new risks to the ERCOT grid.
• Oncor is willing to continue discussions through the governor's task force or the legislature.

▶️Taylor Kilroy, TPPA, SB75

• TPPA represents 75 municipally owned electric utilities and other publicly owned systems serving over 5 million Texans.
• Discussion focused on the resilience provisions for municipalities within SB75.
• Concerns were raised about the Security Commission's current composition, which includes representatives from PUC, the Railroad, and ERCOT, lacking municipal resilience expertise.
• TPPA expressed willingness to collaborate with the Senator’s office to consider alternative committee compositions for evaluating municipal resilience.

▶️Mark Bell, AECT, SB75

• Mark Bell is representing the Association of Electric Companies of Texas (AECT) and is testifying in opposition to SB75.
• AECT is a trade organization representing all sectors of the electric industry in Texas.
• AECT emphasizes a unified purpose of providing a reliable, resilient, and affordable electricity supply.
• The organization stresses the importance of considering the entire infrastructure required for grid security, which SB75 lacks according to them.
• AECT believes affordability and cost analysis are vital to the commission's scope, highlighting the importance of a comprehensive system view.
• Concerns are expressed that cost implications not fully considered in SB75 would impact residents and businesses.
• AECT suggests a more appropriate role for the Texas Grid Commission could be advisory, focusing on broader sectors such as water, communications, and transportation.
• There are significant concerns about maintaining confidentiality when producing public reports.

▶️David Tice, SB75

• David Tice supports Senator Bob Hall's bill, emphasizing the gap between the risks to the electric grid and available solutions.
• Distinction between reliability issues and long-term resilience of the power grid was discussed.
• Comparison to recent storms (winter storm Uri, hurricane Burrow) where power outages were short-term disasters versus potential long-term grid failures.
• Reference to the EMP Commission’s findings on risks of massive storms leading to long-term outages.
• Mention of the Doomsday Clock to emphasize the urgency of passing the bill.
• Senator Blanco questioned if the bill would create new regulatory authority or just a recommending commission.
• Clarification provided that it is not a regulatory body but a commission to study and make recommendations.
• Discussion about the commission's role in setting standards and implementing them via PUC or ERCOT.
• There were concerns and potential misunderstandings about the commission’s authority in creating regulations.
• Emphasis on the need for information gathering before making regulatory changes.
• Discussion about financial implications and impact on power companies and consumers.
• Intent to answer outstanding questions before opposing the bill solely due to uncertainty.
• Overall call to action to start addressing the resilience issues of the power grid.

Panel 3

▶️Chad Seely, ERCOT, SB75

• Chad Seely is a resource witness available for questions regarding grid protection.
• ERCOT conducts geomagnetic disturbance event analyses under NERC standards.
• A new planning assessment for GMD began in February, involving utilities and resource entities.
• ERCOT conducts load shedding and various resilience training, including hurricane training.
• Cybersecurity protocols require market participants to notify ERCOT about significant cyber vulnerabilities.
• There are no specific measures for EMP in existing resiliency plans.
• Jim Kidd of the Division of Emergency Management believes the task facing the commission is manageable.

▶️Tom Glass, Protect the Tx Grid, SB75

• Tom Glass testified on securing the Texas grid, expressing frustration over decade-long discussions with minimal action taken.
• He highlighted a NASA prediction that warned of a solar flare or disturbance that could bring down grids globally, emphasizing it as a serious risk.
• Glass critiqued the creation of committees instead of direct action, sharing an analogy to Ross Perot's remarks about GM's processes.
• He endorsed Senator Parker's bill for quickly addressing grid protection concerns, criticizing current slow progress.
• Glass mentioned a sole vendor producing only 12 neutral blocking devices annually and noted an expert's statement on willingness to license production to other manufacturers.
• Emphasized need to address multiple threats, highlighting solar flares and electromagnetic pulse (EMP) as existential threats despite their low likelihood.
• Glass concluded that prudent societies should prepare for existential threats and supported comprehensive threat analysis and response for Texas' grid security.

▶️Sheila Hemphill, Tx Right To Know, SB75

• Sheila Hemphill from Texas Right to Know voiced concerns about vulnerabilities related to electromagnetic pulses (EMP) and smart meters.
• She emphasized the necessity of protecting generators, especially those related to water supply, by using Faraday cages.
• Hemphill suggested that small communities should focus on securing water resources as a priority.
• She criticized the lack of preparedness for EMP scenarios by certain transmission and distribution utilities (TDUs).
• Senator Hall commented on the issue of Texas being an independent grid and advised against following federal guidelines blindly, warning about their potentially misleading and inadequate standards.
• Mr. Seely from ERCOT confirmed that they currently do not have EMP protections in place but do conduct planning assessments for geomagnetic disturbances.
• Discussion highlighted gaps in ERCOT’s mandate, noting it does not cover critical services like health care or financial services.
• The Senate Bill 75 remains pending, with further testimonies anticipated on related subjects.

______________________________________________________________________

▶️2 - *SB715 Sparks | et al.

• Senator Sparks introduced SB715 aiming to enhance the reliability of the Texas grid following Winter Storm Uri.
• Current reliability standards established by HB1500 apply only to new generation built after 2027, excluding existing power generation.
• SB715 proposes applying reliability standards to both new and existing power generation, removing the 2027 deadline.
• The bill reallocates the responsibility for grid reliability from ratepayers to power generators.
• SB715 seeks to ensure a stable grid, affordable electricity, and effective energy resource deployment.
• Emphasizes the disparity in investment in renewable sources and dispatchable power to highlight the need for more dispatchable generation.
• The bill aims to incentivize reliability and promote fair market pricing for generators.

▶️Walt Baum, Powering Texans - Public Testimony SB715

• Walt Baum represents Powering Texans and is testifying against the bill as currently filed.
• Appreciates the senator's intent but highlights concerns about the bill's retroactivity and its potential negative impact on thermal generators.
• The challenges posed by renewables on operating thermal dispatchable generators are acknowledged.
• There is concern that the bill might lead to the retirement of existing thermal generation.
• The retroactivity of the bill and its possible adverse effects on older thermal generators are seen as problematic.
• Baum argues the bill should not negatively impact existing thermal operations by imposing additional penalties.
• The testimony references the unexpected expansion of renewable energy, far exceeding initial projections.
• There is openness to working on language adjustments to address these concerns.

▶️Cyrus Reed, Sierra Club - Public Testimony SB715

• Cyrus Reed from the Lone Star chapter of the Sierra Club testified against SB715.
• Reed argues that SB715 is the wrong solution and references HB1500 from the last legislative session.
• HB1500 allows for potential firming requirements on future generation projects, but SB715 would impose firming requirements retroactively.
• Reed believes SB715 would increase electricity prices for consumers.
• He suggests the Public Utility Commission (PUC) and ERCOT should implement dispatchable reliability reserve service and co-optimization to enhance market reliability and cost-effectiveness.
• Reed argues imposing firming requirements on all generators is inefficient and would lead to increased costs.
• He points out that reliability issues are not solely due to different types of generation but also due to extreme weather and new loads.

▶️Siva Joshila, TSSA - Public Testimony SB715

• Siva Joshila represented the Texas Solar and Storage Association and the Advanced Power Alliance, speaking against SB715.
• Raised concerns that retroactive legislation diminishes investor confidence and discourages investment.
• Pointed out that SB715 could impose unrecoverable costs on existing assets, potentially increasing customer costs by $1.6 billion annually for solar resources alone.
• Highlighted that the ERCOT market is already effectively delivering firming through private investment and market signals.
• Indicated that SB715 could create operational challenges by administratively defining periods of system need, misaligning ERCOT's resource dispatch and distorting market signals.
• Concluded that SB715 threatens reliability, raises costs, and disrupts the market's self-adjusting mechanisms.

▶️Bill Peacock - Public Testimony SB715

• Bill Peacock testified in favor of Senate Bill 715 (SB715).
• He stated renewable generators have earned over $35 billion in subsidies since 2014, impacting grid reliability.
• Peacock criticized Texas regulations for increasing electricity costs while addressing grid issues.
• He suggested eliminating state and local subsidies for renewable energy and making generators accountable for grid costs.
• SB715 aims to make renewable generators pay costs currently borne by consumers.
• He acknowledged SB715 might increase subsidies for thermal generators but sees it as a step forward.
• Peacock highlighted Senator Sparks’ role in addressing the challenge.
• He referenced SB7 and HB1500, noting prior efforts with firming requirements.
• By 2027, all generation sources in Texas must meet firming requirements both retroactively and prospectively.

▶️Tom Ortman - Public Testimony SB715

• Tom Ortman is a private citizen and an engineer with a background in the semiconductor industry.
• He played a significant role in bringing a Samsung plant to Texas, which was a major capital investment.
• Ortman recounted the shutdown of the plant during winter storm Uri and the significant financial losses incurred daily.
• Ortman expressed opposition to SB17, highlighting concerns with dictating requirements that may not align with market realities.
• He stressed the importance of allowing market forces to dictate solutions and emphasized business tendencies to pursue cost-effective options.

▶️Mike Nasi, STEC - Public Testimony SB715

• Mike Nasi is speaking on behalf of South Texas Electric Cooperative (STEC).
• Appreciation expressed for the chairman's historic efforts.
• Acknowledgement that the House did not pass the proposal last session.
• Key issue mentioned is distinguishing between retroactive application and non-uniform application across the fleet.
• STEC supports fleet-wide firming application, to be phased in to address retroactive concerns.
• Noted that market designs change regularly and often involve debates over retrofitting or retroactivity.
• STEC's support originates from experiences following Winter Storm Uri.
• Emphasizes STEC's commitment to firming renewables and having dispatchable backups.
• Nasi highlights inequity during Winter Storm Uri where their firm resources still led to outages due to ERCOT's shared system.
• Advocates for a firming requirement in Texas, indicating continued support and willingness to collaborate with policymakers.

▶️Brent Bennett, TPPF - Public Testimony SB715

• Brent Bennett testified in support of Senate SB715 on behalf of the Texas Public Policy Foundation.
• Expressed appreciation for efforts to manage wind and solar costs on Texas ratepayers.
• Highlighted that while interconnection costs are capped and transmission bills are scrutinized, wind and solar price volatility still costs ratepayers significantly.
• Current ERCOT pricing doesn't properly account for the variability of wind and solar compared to gas, coal, and nuclear.
• Described the free value from wind and solar but emphasized the need for proper payment strategies relative to reliability.
• Reliability standard by HB1500 was acknowledged as a first step but needs broader application.
• SB715 is intended to address existing volatility costs and prevent future outages.
• Advocated for the incentivization of generator reliability to avoid taxpayer and ratepayer subsidies.
• Stressed the importance of passing SB715 to prevent another disaster like winter storm Uri and avoid increased costs.

▶️Michael Jewell, Sol Systems - Public Testimony SB715

• Michael Jewell represents Sol Systems in testifying against SB715.
• Sol Systems is developing the Nightfall Solar Facility in Uvalde County, Texas, with a projected 180 megawatts and a $250 million investment.
• The project is expected to deliver over $30 million in fiscal benefits to the community over its lifetime.
• SB715 is opposed as it would alter the project's economics and could lead to its cancellation.
• The bill introduces financial uncertainty and potentially undermines investor confidence in ERCOT's market.
• Jewell argues that firming, as proposed by SB715, has previously failed in ERCOT, causing issues with grid reliability.
• Firming requirements led to inefficiencies and frustrations with operators, as discussed in historical ERCOT policy experiences.
• Sol Systems requests a no vote on SB715.
• Keith Collins from ERCOT states they have no position on the bill but are available to answer questions.

▶️Susan Meredith, Citizens' Climate Lobby - Public Testimony SB715

• Susan Meredith emphasized the importance of dispatchability in energy resources, sharing a personal experience during Winter Storm Uri when she was without energy for five and a half days.
• She expressed opposition to a certain bill, arguing for a balanced energy economy that includes natural gas, renewables, and energy storage.
• Susan highlighted issues with restricting dispatchable storage, which she believes causes grid instability and affects both natural gas and renewables.
• She stressed the need for a future-focused approach, rather than a 'tug of war' over energy policies.
• Meredith pointed out economic considerations involved in energy decisions, especially concerning natural gas's presence in Texas.
• She mentioned opportunities in rural areas and stated her lack of a personal financial interest in the energy industry.
• Susan has a background in energy efficiency and storage, and is actively seeking ways to contribute to energy solutions.
• After her testimony, no further questions were asked and the session was closed with the bill left pending.

______________________________________________________________________

▶️7 - *SB2021 Johnson

• Chairman Johnson introduces his bill, SB2021, and mentions a committee substitute.
• The bill focuses on Distributed Energy Resources (DERs) and the need for a regulatory framework in the burgeoning industry.
• Johnson started working on DERs six years ago due to inaction by the Public Utility Commission of Texas (PUC).
• The initial bill was not successful, but progress was made with SB1699 in the last session.
• The committee substitute for the current bill is similar to past versions with amendments to address previous problems.
• A key issue in previous bills was a split among industry players over a specific provision that affected its progress.
• There is significant investment in the industry, emphasizing the need for a regulatory framework to prevent future conflicts.
• Rulemaking by the PUC is ongoing, but might not resolve all issues, necessitating legislative action.
• The bill results from stakeholder discussions and various agreements yet faces objections regarding DERs, focusing on interconnection, registration, and regulatory barriers.
• Johnson expresses commitment to advancing the industry without allowing a few big players to dominate through regulatory capture.

▶️Julia Harvey, TEC - Public Testimony SB2021

• Julia Harvey represents Texas Electric Cooperatives, which includes 76 co-ops across Texas.
• Harvey is testifying on Senate Bill 2021 and expresses gratitude to Senator Johnson and the staff for their work on it.
• Concerns were raised about co-ops potentially not being able to own or operate Distributed Energy Resources (DERs) or Aggregated Distributed Energy Resources (ADERs) under the bill.
• Co-ops are currently authorized to operate both large and small scale generators, including DERs.
• There is a push for coops to facilitate aggregated DERs, noting that one of the two qualified ADERs in ERCOT is operated by a co-op.
• The potential for innovation through coops in DER aggregation is highlighted due to buy-in from end users who are coop owners.
• The testimony calls for clarification in the bill to ensure coops are not limited by the registration requirements as a Power Generation Company (PGC).
• Julia Harvey expresses appreciation for the red lines sent and agrees on the inclusion of Municipal Owned Utilities (MOUs) in the participation.

▶️Matt Boms, TAEBA - Public Testimony SB2021

• Matt Boms, Executive Director of the Texas Advanced Energy Business Alliance (TAEBA), provided testimony.
• Opposition was expressed against SB2021, as it is believed to hinder energy independence through additional regulation.
• TAEBA supports energy technologies such as battery storage, demand response, rooftop solar, backup generators, and microgrids.
• Concerns were raised regarding SB2021's additional red tape, costs, and restrictive measures on Texans investing in personal energy solutions.
• The bill imposes unnecessary registration and interconnection barriers for homeowners with backup power.
• The current form of SB2021 conflicts with previously passed bills SB1202 and SB1252, which aimed to reduce regulation.
• Support was urged for HB 3346, a bill promoting streamlined interconnection and consumer protection for distributed energy resources.

▶️Mark Stover, TSSA - Public Testimony SB2021

• Mark Stover, Executive Director of the Texas Solar and Storage Association, testified against SB2021.
• He noted improvements over the originally filed bill and SB1212, but expressed concerns about certain provisions.
• The growth and integration of Distributed Energy Resources (DERs) are vital for evolving the power grid due to new technologies and changing energy use patterns.
• Progress is being made through the ADER task force, pending legislation, and rulemaking efforts at the commission.
• Stover expressed concerns that the committee substitute might undermine current progress in DER deployment.
• He acknowledged Senator Johnson's interest and hard work on DER policy and looks forward to continued discussions.
• The ultimate goal is to ensure meaningful expansion of DER technologies.

▶️Mark Bell, AECT - Public Testimony SB2021

• Mark Bell testified on behalf of the Association of Electric Companies of Texas (AECT) in support of SB2021.
• SB2021 aims to create a needed framework for distributed energy resources (DER) on the distribution system in Texas.
• The bill aims to clarify registration requirements for DER and protect customers from fraudulent or deceptive practices.
• SB2021 is designed to maintain grid safety through technical and operational standards.
• The bill is anticipated to position Texas as a leader in integrating new energy resources by establishing clear rules for market participants.

▶️Senator Menéndez to Panel, SB2021 - Balance of Authority in DER Interconnections

• Issue raised about imbalance in authority favoring big utilities in DER interconnections.
• Concern that current bill allows utilities to delay or deny connections based on vague reliability and safety concerns.
• Calls for legislative direction to the Public Utility Commission (PUC) as existing projects on DER issues are unresolved.
• Discussion on proven status of DER technologies and desire to avoid bureaucratic red tape in Texas.
• Reference to practices in other states, noting that Texas has potential in distributed generation, despite success in utility scale generation.
• Clarification that no statewide net metering policy is being suggested within Texas's deregulated market.
• Confirmation from co-op representative on ensuring equal opportunity and maintaining ability to offer resources.
• Co-op ownership and their emphasis on equitably participating in market changes noted.

▶️Senator Johnson to Panel, SB2021 - Objections to Bill Language

• The bill requires anyone owning or operating a DER to register as a power generation company unless they're part of a registered aggregator.
• There was a comparison to SB1699, highlighting that the main new addition is interconnection requirements for safety.
• Concerns were raised about the bill creating unnecessary bureaucratic hurdles for small and individual DER owners.
• Discussion on interconnection rules being too vague; suggestion for the Public Utility Commission (PUC) to proceed with rulemaking.
• Stakeholders expressed desire for the PUC to have guidance from the legislature for interconnection rulemaking.
• Concerns were raised about the impact on transmission and distribution utility (TDU) infrastructure and the possible need for maps to aid in safe distribution planning.
• Rural co-ops were mentioned as being potentially impacted by new regulations and the need for their integration into the bill.

▶️Cyrus Reed, Sierra Club - Public Testimony SB2021

• Cyrus Reed from the Lone Star Chapter of the Sierra Club registered against the bill.
• Highlighted differences between the current bill and SB1699, noting that the current bill seems to impose heavier registration requirements on aggregated Distributed Energy Resources (DER).
• Bill 1699 previously removed power generation company registration requirements for aggregated distributed resources.
• Cyrus Reed expressed concern that the current bill could hinder participation in DER by imposing onerous requirements.
• Mentioned ERCOT's interest in encouraging participation from small-scale solar providers who contribute to the 3,000 megawatts of on-site solar energy.
• Noted different categories of participants including settlement-only entities and distributed battery resources in ancillary services.
• Sierra Club's main interest is facilitating consumer participation in DER through representatives and third parties, emphasizing a need for less burdensome regulations.
• Cyrus Reed mentioned the Sierra Club's willingness to provide further feedback on the bill in the near future.

▶️Pete Parsons, TXSES - Public Testimony SB2021

• Pete Parsons is the executive director of the Texas Solar Energy Society.
• The Texas Solar Energy Society has been promoting distributed solar energy access since 1976.
• Parsons is addressing SB2023 and urges for its clarification.
• She opposes the inclusion of small distributed solar, like rooftop solar homeowners not in a DER program, in this bill.
• SB2021 could deter residential solar customers from installing solar or batteries.
• The bill could have unintentional negative effects on families attempting to self-generate energy.
• SB2021 proposes an onerous registration process that could stifle home and small business solar investments.
• The bill requires homeowners wanting solar or battery systems to register with ERCOT as power generators, akin to large power plants.
• This registration process could hinder families from managing energy costs and dealing with outages.
• Senate SB2021 could impose new interconnection rules and costs, potentially not lowering costs for ratepayers.
• Current distribution utilities already have necessary authority over these issues.

▶️Raina Hornaday, TXSES - Public Testimony SB2021

• Raina Hornaday, a board member of the Texas Solar Energy Society, addressed the committee.
• Concerns were raised about a bill requiring homeowners and small businesses to register as power generation companies, potentially discouraging rooftop solar adoption.
• Most society members are rooftop solar installers facing current market challenges.
• Hornaday emphasized the need for clarity on the definitions within the bill.
• Delays in utility interconnections were highlighted as a current issue, with potential additional delays increasing costs.
• The goal is to avoid additional expenses and red tape from incorporating solar and battery technologies for Texans.

▶️Joel Yu, Enchanted Rock - Public Testimony SB2021

• Joel Yu, Senior Vice President of Enchanted Rock, represented a coalition focused on grid resilience in Texas.
• The coalition includes Base Power, Generac Grid Services, and Power Secure.
• Testified on SB2021, led by Senator Johnson, regarding the integration and interconnection of Distributed Energy Resources (DERs).
• Highlighted the importance of DERs for grid reliability and resiliency amidst unprecedented load growth.
• Shared red lines with Senator Johnson's office, focusing on two main items: the registration process and definitions for DER business models and interconnection.
• Stressed the need for narrow policy direction for utility interconnection processes to ensure consistency and standardization.
• Emphasized socialization of upgrade costs to facilitate DER grid services access to ERCOT.
• Noted the importance of supporting innovation and streamlining processes to avoid slowing down DER deployment.
• Expressed eagerness to collaborate with Senator Johnson and other stakeholders to benefit the grid and customers.

▶️Senator Johnson to Panel, SB2021 - Addressing Comments on Bill

• The bill does not intend to impede private solar panel installations for home power use.
• Focus is on wholesale generation and selling excess power back to the market to ensure grid stability.
• Senator Johnson aims to clarify bill language to avoid misunderstandings.
• The bill and SB1699 both require registration for generation companies unless part of an aggregate distributed energy resource (ADER).
• Senator Johnson to revisit comparison between SB2021 and SB1699 to ensure clarity on registration requirements.
• Concerns raised about language in the bill being too utility-centric and not considering consumer benefits.
• Worries that bill language could lead to higher energy costs if not carefully interpreted by the Public Utility Commission (PUC).
• Public testimony closed on SB2021 after no further comments from potential speakers.

______________________________________________________________________

▶️9 - *SB2148 Hall

• The bill SB2148 aims to enhance the physical security of critical facilities on the Texas grid.
• Coordination is required between Texas utilities, law enforcement, the Public Utility Commission (PUC), and ERCOT.
• SB2148 proposes tabletop exercises to prepare and plan roles and responses to potential attacks on critical facilities.
• The importance of planning prior to attacks rather than post-attack responses is emphasized.
• Confidentiality of critical facility locations will be maintained, as utilities are not required to disclose specific locations to PUC or ERCOT.
• SB2148 complements Senator King's SB947 which created penalties for damaging critical infrastructure.
• The bill aims to create a force multiplier of resources for infrastructure protection against rising threats from foreign and domestic actors.

▶️Brian Lloyd, Oncor - Public Testimony SB2148

• Brian Lloyd, Vice President for Regulatory Policy for Oncor Electric Delivery, spoke in support of SB2148.
• Oncor takes threats of intentional damage to facilities very seriously and emphasizes redundancy and resiliency in their grid.
• Oncor has mobile substations and spare long lead time equipment to address damaged infrastructure.
• The Public Utility Commission (PUC) has approved significant additional resiliency measures, including cyber and physical security.
• Oncor plans to spend $600 million in the next three years for enhanced security measures.
• SB2148's requirement for additional exercises complements existing efforts and improves coordination with other entities.
• The bill's provisions ensure that sensitive and confidential infrastructure information remains protected.
• Oncor appreciates the bill's focus on enhancing readiness without compromising security.

▶️Chuck DeVore, TPPF - Public Testimony SB2148

• Chuck DeVore represented the Texas Public Policy Foundation, supporting SB2148.
• DeVore has a background in military intelligence and participated in numerous simulations and war games, highlighting their value in learning and discovering unknowns.
• He referenced 1,039 reported incidents of physical attacks on the electric grid from February 2010 to March 2023, citing the Center for Security Policy.
• Attacks include shooting at transformers, which results in coolant loss and overheating, with transformer replacement taking two to four years.
• SB2148 would require annual simulated or tabletop exercises by the PUC and ERCOT to gather valuable information.
• Such exercises are deemed a commonsense measure to improve the resilience and reliability of Texas's electric grid.
• The bill is expected to generate further legislative measures to enhance grid reliability.

▶️Sheila Hemphill, Tx Right to Know - Public Testimony SB2148

• Sheila Hemphill advocates for SB 2,148, agreeing with Oncor.
• The importance of end points in electricity delivery, specifically smart meters, since 2010.
• Concerns about smart meters providing a backdoor to electric companies for cyber and EMP threats.
• Insight on the vulnerability of digital devices with motherboards to EMPs.
• Appreciation for public utilities while criticizing their denial of smart meter associated issues.
• Mentioned financial incentives for companies replacing smart meters.
• Suggested using a Faraday cage for backup generators to protect against EMPs.
• The committee plans further discussion on SB2021 and SB2330 after the session.

______________________________________________________________________

▶️10 - *SB2321 King

• Senator King introduced SB2321, recognizing its importance in the context of large power loads having backup generation.
• The bill relates to the codification of a current practice where ERCOT notifies TCEQ about necessary hour cap waivers for backup generation.
• The practice involves TCEQ working with the federal government to waive hours, particularly for systems like diesel generators that have environmental limits.
• This codification is aimed at reassuring data centers and large loads of support in running their backup generation systems.
• ERCOT confirmed there have been no protests from environmental groups against the current practice.

▶️Cyrus Reed, Sierra Club - Public Testimony SB2321

• Cyrus Reed from the Sierra Club supports bill SB2321.
• Appreciates inclusion of clear language on discretion in environmental controls, while maintaining records and submitting documentation to TCEQ.
• Emphasizes the importance of having records to ensure controls are only adjusted reasonably and not entirely turned off.
• Recommends improvement by ensuring emission events continue to be reported through STEERS.
• Clarification needed that if documentation is provided and operations are reasonable, enforcement won't proceed unless actions are highly unreasonable.

▶️Michael Looney, San Angelo Chamber of Commerce - Public Testimony SB2321

• Michael Looney represented the San Angelo Chamber of Commerce and Tom Greene County, expressing support for a new bill.
• West Texas is sparsely populated but has a robust manufacturing sector requiring significant grid power.
• Data centers in the region are expanding and require reliable power sources.
• Manufacturers and data centers have backup generation systems but prefer using grid power.
• In emergencies, reliance on backup generators allows continued production and global exports.
• The bill aims to codify rules for using backup power, easing pressure on manufacturers.