Declaring a National Emergency To Secure the United States Bulk-Power System

What it does

• •Declares a national emergency regarding foreign-produced bulk-power system electric equipment and establishes a prohibition on acquisition, importation, transfer, or installation of such equipment when initiated after the order date and determined by the Secretary of Energy to pose undue risks of sabotage, unauthorized access, or supply disruption.
• •Authorizes the Secretary of Energy to impose conditions on existing foreign-manufactured bulk-power system equipment, including requirements to identify, isolate, monitor, secure, disconnect, replace, or remove such equipment, while considering effects on reliability and safety.
• •Empowers the Secretary of Energy to design mitigating measures to address national security concerns and to establish criteria for pre-qualifying particular equipment and vendors as exempt from the prohibition.
• •Prohibits transactions that evade or attempt to violate the order's requirements and authorizes the Secretary to implement the order through rules, regulations, and direction of agency actions.

Why it matters

• •The order identifies vulnerabilities in the U.S. bulk-power system created by foreign-produced electric equipment, including potential digital backdoors and supply chain dependencies, as threats to national defense, critical infrastructure, economy, and public safety.
• •Increased reliance on electricity from advanced manufacturing, data centers, artificial intelligence, and defense production heightens the consequences of a successful attack or supply disruption on the bulk-power system.

Who is affected

• •Any person or entity subject to U.S. jurisdiction acquiring, importing, transferring, or installing foreign-produced bulk-power system electric equipment.
• •Operators and owners of bulk-power system equipment acquired or installed before the order date who may be required to modify, monitor, or replace existing foreign-manufactured equipment.
• •Foreign countries, nationals, and entities determined to be Covered Foreign Entities by the Secretary of Energy.

What happens next

The Secretary of Energy, in coordination with specified cabinet officials and agency heads, will implement the order by establishing rules and regulations to identify prohibited transactions, determine which equipment and vendors qualify for exemptions, and enforce compliance requirements.