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Signed Into Law
Signed June 20, 2025Effective 2025-09-01
SB2148

Regular Session

Relating to the reliability of the electricity supply chain.

Government Affairs & Regulatory Compliance Analysis

SB2148: Government Affairs Overview

SB2148 mandates that all electric generation and transmission providers in the ERCOT region conduct biennial "physical attack" tabletop exercises, distinct from existing load-shedding drills. The most significant operational shift is the requirement to formally coordinate with law enforcement regarding response roles and file a written attestation with ERCOT confirming this coordination has occurred.

Sen. Bob Hall·Senate Bill·Regular Session

Moderate
Low Cost
Effective:2025-09-01
Enforcing Agencies

Electric Reliability Council of Texas (ERCOT) • Public Utility Commission of Texas (PUC)

Business Impact

Who SB2148 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.

⚡

Energy

Affected business types:

  • Power generators
  • Electric utilities
  • Renewable energy developers
  • Battery storage operators
View all energy legislation

Key Operational Considerations

  • 1Security Vendors: Review Master Service Agreements (MSAs) with private security firms. You must ensure they are contractually obligated to participate in tabletop exercises if requested.
  • 2Staffing: No new internal hires are mandated, but the PUC is hiring dedicated staff to audit these exercises. Ensure your compliance team allocates hours for regulatory interface during these drills.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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SB2148
Moderate
Relating to the reliability of the electricity supply chain.
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
ERCOTPUC
Primary Author: Sen. Bob Hall
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: December 31, 2026 (Completion of first mandatory exercise and filing of attestation).
  • Agency Rulemaking: The PUC is funding three new full-time positions specifically to oversee these exercises. Expect rulemaking or guidance memos between late 2025 and mid-2026 to standardize the "attestation" format and clarify "critical facility" designations.

Immediate Action Plan

  • 1. Inventory Assets: Immediately identify which of your facilities meet the definition of "critical" under Section 1(a) (causing widespread instability if damaged).
  • 2. Initiate Outreach: Send formal letters to the relevant law enforcement agencies for those assets to begin the coordination process. Do not wait until 2026.
  • 3. Update Compliance Calendar: Schedule the physical security tabletop exercise for Q2 or Q3 of 2026 to ensure completion before the December 31 deadline.
  • 4. Draft the Attestation: Have legal counsel draft a template attestation form now, anticipating that ERCOT may not provide one immediately.

Operational Changes Required

Contracts

  • Security Vendors: Review Master Service Agreements (MSAs) with private security firms. You must ensure they are contractually obligated to participate in tabletop exercises if requested.
  • Law Enforcement: While not a commercial contract, you must attempt to secure a Memorandum of Understanding (MOU) or Letter of Agreement with local law enforcement (Sheriff/PD) to satisfy the statutory requirement of defining "roles and responsibilities."

Hiring/Training

  • Drill Scenarios: Security directors must develop new scenarios simulating physical sabotage, ballistic damage to substations, or control center breaches. These are distinct from weather/capacity drills.
  • Staffing: No new internal hires are mandated, but the PUC is hiring dedicated staff to audit these exercises. Ensure your compliance team allocates hours for regulatory interface during these drills.

Reporting & Record-Keeping

  • Mandatory Attestation: You must file a written statement with ERCOT attesting that you have coordinated with law enforcement.
  • Audit Trail: Maintain a specific "SB2148 Compliance Log." This must include dates of law enforcement outreach, copies of MOUs, exercise rosters, and after-action reports. The PUC's new dedicated staff will likely request these documents during inspections.

Fees & Costs

  • Direct Costs: No new state fees are levied.
  • Operational Costs: Budget for internal staff hours to design and execute the exercises, plus legal counsel time to draft and negotiate MOUs with local law enforcement agencies.

Strategic Ambiguities & Considerations

  • Law Enforcement Non-Participation: The statute requires you to attest to coordination, but it does not compel law enforcement agencies to cooperate. If a local agency refuses to engage or sign an MOU due to resource constraints, you risk being unable to sign the attestation. *Strategy: Document every email, call, and meeting request to prove due diligence.*
  • "Critical Facility" Designation: The bill defines this based on "widespread instability." It is currently unclear if ERCOT will provide a definitive list of your assets that qualify, or if the burden is on you to self-designate. Under-designating creates liability; over-designating increases costs.
  • Confidentiality Mechanics: The law protects TDSPs from disclosing specific substation locations during exercises, yet the PUC must oversee them. The procedural mechanics of auditing an exercise regarding a "blind" location will likely be complex and require clarification during rulemaking.

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JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 10, 2025
Passed Senate
Apr 10, 2025
Passed House
May 24, 2025
Signed
Jun 20, 2025
Effective
Sep 1, 2025
TopicsDisaster Preparedness & ReliefUtilitiesUtilities--electricElectric Reliability Council of TexasPublic Utility Commission
03

Senate Authors

Sen. Bob HallRepublican · Primary Author
Coauthors (2)

House Sponsor

Rep. Shelby SlawsonRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Sen. Bob Hall

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Quick Reference

Frequently Asked Questions

Common questions about SB2148

Q

What does Texas SB2148 do?

SB2148 mandates that all electric generation and transmission providers in the ERCOT region conduct biennial "physical attack" tabletop exercises, distinct from existing load-shedding drills. The most significant operational shift is the requirement to formally coordinate with law enforcement regarding response roles and file a written attestation with ERCOT confirming this coordination has occurred.

Q

Who authored SB2148?

SB2148 was authored by Texas Senator Bob Hall during the Regular Session.

Q

When was SB2148 signed into law?

SB2148 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB2148?

SB2148 is enforced by Electric Reliability Council of Texas (ERCOT) and Public Utility Commission of Texas (PUC).

Q

How significant are the changes in SB2148?

The regulatory priority for SB2148 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB2148?

The cost impact of SB2148 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB2148 address?

SB2148 addresses topics including disaster preparedness & relief, utilities, utilities--electric, electric reliability council of texas and public utility commission.

Q

What are the key dates for SB2148?

Key dates for SB2148: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Q

What are the penalties under SB2148?

SB2148 establishes the following penalties: administrative penalty of Standard PUC administrative penalties apply for Failure to participate in mandated exercises or provide required attestation to ERCOT.. Consult with legal counsel for specific applicability to your situation.

Q

Which Texas businesses are affected by SB2148?

SB2148 primarily affects utility companies and energy providers. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026