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June 8, 2021legislationenergy policyutility regulationemergency preparednessenergygrid reliabilityweatherization

Abbott signs SB 3, requiring Texas power plants to weatherize but exempting most gas wells

Governor Greg Abbott signed Senate Bill 3 on June 8, 2021, requiring Texas power plants and some natural gas infrastructure to weatherize against extreme cold following Winter Storm Uri's $195 billion grid failure. The law directed the Texas Railroad Commission to set weatherization standards for gas facilities and gave ERCOT authority to mandate power plant upgrades, but roughly 30% of gas well operators received exemptions from mandatory requirements. Generators had until December 2023 to comply, but ERCOT's first compliance audit found a significant share of plants hadn't met the standard.