SB 2680

This bill prohibits electric utilities and h igh performance computing (HPC) facilities from using transformers, parts, or equipment manufactured or sold by entities owned or controlled by foreign adversaries. As used in this bill, a "foreign adversary"" includes, as of the writing of this summary, the People's Republic of C hina, including the Hong Kong Special Administrative Region and the Macau Special Administrative Region; the Republic of Cuba; the Islamic Republic of Iran; the Democratic People's Repub lic of Korea; the Russian Federation; and the Venezuelan politician Nicolas Maduro. This bill requires electric utilities and HPC facilities to annually report the sources of any equipment that supports their operations in this state to the comptroller of the treasury (""comptroller""). Further, this bill requires that each electric util ity and HPC facility annually conduct an internal audit on its compliance with this bill and to permit a compliance audit by the comptroller. The comptroller must post annual reports and audit findings prominently on its website. As used in this bill, a ""h igh performance computing (HPC) facility"" means a facility, other than one owned by a governmental entity, that houses or operates a supercomputer, data center, artificial intelligence data center, AI factory, AI-optimized computing facility, HPC or AI cl uster or supercluster, or exascale computing system in this state that utilizes, on average, more than 50 megawatts of electricity per month. VIOLATIONS If an electric utility or HPC facility violates this bill, then this bill requires the comptroller to provide written notice of noncompliance and instruct the utility or facility it has 30 days to comply. At the end of the 30-day period, if the utility or facility has not complied, then the comptroller must provide notice to each local government in which the utility or facility operates and to the attorney general. Further, the comptroller must post any utility or facility that fails to comply promine nt ly on its website. Once the utility or facility complies, the comptroller must update each applicable local government, the attorney general, and its website. This bill requires a local government that receives a notice of noncompliance to suspend the operating license or permit of the violating utility or facility and prohibit issuance of any new license or permit, until the local government has received noti ce of compliance. CAUSE OF ACTION BY THE ATTORNEY GENERAL This bill authorizes the attorney general to bring an action against an electric utility or HPC facility in violation of its provisions. The attorney general may seek (i) a civil penalty of not more than $25, 000 per violation, (ii) injunctive or declara tory relief, and (iii) reasonable costs and attorneys' fees. Each separate transformer, part, or equipment constitutes a separate violation. CAUSE OF ACTION BY RESIDENTS OF THIS STATE This bill establishes a cause of action for a resident of this state. The harmed resident may seek (i) actual damages, (ii) punitive damages, (iii) injunctive or declaratory relief, (iv) reasonable court costs and attorneys' fees, and (iv) any other rel ief the court determines is proper."