Securing the United States Bulk-Power System

This executive order declares a national emergency over foreign adversary threats to the U.S. bulk-power system, prohibiting the acquisition, importation, transfer, or installation of foreign-supplied electric equipment deemed to pose national security risks. It establishes a multi-agency Task Force to develop federal procurement policies and directs rulemaking to implement these restrictions.

Federal Register Open PDF 85 FR 26595

Impact dates

Date TBD
FAR Council to consider proposing FAR amendments after receiving Task Force procurement recommendations
May 1, 2021
Task Force initial report to President
Sep 28, 2020
Secretary to publish rules or regulations implementing delegated authorities
May 1, 2020
Secretary to identify risky foreign equipment and develop replacement recommendations

Key directives

Prohibit acquisition/importation/transfer/installation of bulk-power system electric equipment from foreign adversaries where Secretary determines undue risk
Secretary may design mitigation measures as precondition for approving otherwise prohibited transactions
Secretary may establish pre-qualified equipment/vendor lists
Secretary authorized to direct timing and manner of cessation of prohibited transactions
Secretary to publish implementing rules/regulations within 150 days
Secretary to identify risky foreign equipment and develop isolation/monitoring/replacement recommendations as soon as practicable
Establish Task Force on Federal Energy Infrastructure Procurement Policies Related to National Security
Task Force to develop consistent federal procurement policies and submit to FAR Council
Task Force to consult with Electricity Subsector Coordinating Council and Oil and Natural Gas Subsector Coordinating Council
Task Force to submit initial report within 1 year, then annual reports
FAR Council to consider proposing FAR amendments within 180 days of receiving Task Force procurement recommendations

Who is ordered

Timeline

Immediate

National emergency declared
Prohibitions on certain transactions effective for transactions initiated after May 1, 2020

Near term (90d)

Secretary to identify risky foreign equipment and develop replacement recommendations 'as soon as practicable'
Task Force begins meeting and developing procurement recommendations

Long term

Rules and regulations due by September 28, 2020
Task Force report due May 1, 2021
FAR Council consideration of procurement amendments within 180 days of receiving Task Force recommendations

Risks & tensions

Vague 'as soon as practicable' deadline for equipment identification creates implementation uncertainty
FAR Council 180-day clock starts from receipt of Task Force recommendations, but Task Force has no fixed deadline for subsection (c)(i) recommendations—only the 1-year report
Pre-qualified vendor list could create market concentration or de facto preferences
Broad definition of 'foreign adversary' (any foreign government or non-government person with adverse conduct pattern) grants wide discretion
Mitigation measures as precondition for approval may create compliance burden without clear standards
Tension between open investment climate and national security restrictions explicitly acknowledged in text
Task Force termination contingent on Chair's determination of objective completion—no fixed end date