The state Senate Committee on Business and Commerce invited testimony focused on the integrity of the supply chain for the Texas electric grid and other critical infrastructure, including potential risks posed by hostile foreign entities such as China, Russia and Iran. The panel was directed to make recommendations for improvements and for an ongoing evaluation process aimed at keeping the grid reliable and secure.
The discussion comes as solar panels and battery storage become a larger part of the Texas grid. Now among the fastest-growing resources on the system, both are heavily dependent on equipment made in China or tied to Chinese companies.
Witnesses at the hearing said there are no documented cases of foreign-controlled parts in Texas solar or storage projects being used to attack the U.S. grid, but they also warned that software connectivity and remote access could still create an opening for manipulation or disruption.
That concern ran through much of the hearing. Testimony drew attention to whether foreign-made components embedded in Texas projects could be accessed through software, and whether any agency currently inspects at-risk projects to verify company claims or detect suspicious systems.
Texas already has a legal framework in place for some of those concerns. The Lone Star Infrastructure Protection Act restricts certain agreements involving critical infrastructure with covered foreign-linked companies, including contracts by government entities when those companies would receive direct or remote access to or control of that infrastructure. The law defines critical infrastructure broadly to include communication systems, cybersecurity systems, the electric grid and water treatment facilities.
The Electric Reliability Council of Texas (ERCOT) has built compliance requirements around that law. In a 2023 market notice, ERCOT said the Lone Star Infrastructure Protection Act introduced new reporting and attestation requirements for market participants that procure critical electric grid equipment or services from certain countries, including China, Iran, North Korea and Russia. ERCOT General Counsel Chad Seely told lawmakers that one noncompliant company had been disconnected from the system and that about 1 in 10 companies reported purchasing covered products, almost all from Chinese firms.
The hearing also covered the questions of whether Texas’ current disclosure and attestation structure is enough, or whether the state should move toward tighter oversight, inspections or additional procurement restrictions for grid-connected technology. Some witnesses argued the focus should be on who controls connected equipment, while others suggested lawmakers could consider narrower restrictions targeting specific firms rather than broader bans that could raise costs.
This story originally appeared in Industry Insider — Texas, which is part of e.Republic, Government Technology’s parent company.
