Securing the United States Bulk-Power System
This is an executive order, not a bill, issued by President Trump on May 1, 2020, to protect the United States bulk-power system (the high-voltage electric transmission network and related equipment) from foreign-origin risks. It declares a national emergency under the International Emergency Economic Powers Act and imposes new controls on the acquisition, importation, transfer, or installation of bulk-power system electric equipment that is designed, developed, manufactured, or supplied by entities owned by or subject to foreign adversaries. The order gives the Secretary of Energy broad authority to implement rules, regulate transactions, and potentially bar or limit problematic equipment and vendors. It also creates a federal Task Force to align energy procurement policies with national security goals and requires regular reporting to the President and Congress. The goal is to reduce vulnerabilities that could be exploited to sabotage or disrupt electric reliability, national security, or the economy. Key features include a targeted prohibition on certain transactions involving foreign-adversary equipment, a framework for implementing and enforcing those prohibitions, a formal interagency Task Force to shape procurement policies, and detailed definitions to guide federal action. It also includes mechanisms for licensing, risk mitigation measures, and ongoing reporting to Congress.
Key Points
- 1Prohibition on certain transactions: After the order, no person within U.S. jurisdiction may acquire, import, transfer, or install bulk-power system electric equipment if the equipment is made by entities owned or controlled by a foreign adversary and the transaction poses undue risk to the bulk-power system, critical infrastructure, or national security. The prohibitions apply to new transactions but do not retroactively nullify all preexisting contracts or licenses, except as regulated by future rules or directives.
- 2Secretary of Energy authorities: The Secretary can direct the timing and manner of stopping prohibited transactions, issue rules/regulations, and use IEEPA emergency powers to implement the order. Other federal agencies must assist and comply as appropriate. The order anticipates licensing or other regulatory pathways to manage or mitigate risks.
- 3Pre-qualified lists and mitigation: The Secretary may establish criteria to identify pre-qualified equipment and vendors and may apply mitigation measures or negotiate conditions as a precondition to approval of a transaction that might otherwise be prohibited.
- 4Task Force on Federal Energy Infrastructure Procurement: A Task Force is created to coordinate federal energy procurement with national security in mind. It’s chaired by the Secretary of Energy and includes senior officials from Defense, Interior, Commerce, Homeland Security, DNI, OMB, and other designated agencies. The Task Force will develop standardized procurement policies, evaluate how national security is integrated into energy policy, consult with industry councils, and deliver reports to the President.
- 5Reporting and transparency: The Task Force must submit an initial report within one year and annual updates thereafter, plus other reports as directed. The Secretary may also provide recurring and final reports to Congress on the national emergency and related activities.
- 6Definitions and scope: The order provides specific definitions for bulk-power system, bulk-power system electric equipment, foreign adversary, procurement, and a “United States person,” to guide which entities and activities are covered. It clarifies what counts as bulk-power equipment and what is outside its scope (local distribution is excluded).
- 7General provisions: The order emphasizes consistency with existing law, budget constraints, and that it does not create new rights or benefits enforceable in court. It also confirms the authority to implement broad regulatory and procurement changes in pursuit of national security objectives.