Key facts
- President Donald Trump signed an executive order banning the use of certain foreign-produced equipment in the U.S. electricity grid.
- The order prohibits the purchase or installation of bulk-power system electric equipment, including software and digital capabilities, that could pose cybersecurity or operational risks.
- The ban targets equipment designed, manufactured, or supplied by entities subject to the jurisdiction of a U.S. foreign adversary.
- The Department of Energy must determine if a transaction poses an undue risk.
- The Energy Secretary has 150 days to coordinate with other agencies to issue implementing rules.
President Donald Trump signed an executive order on August 26, 2020, banning the use of certain foreign-produced equipment in the U.S. electricity grid. The White House stated that the order prohibits the purchase or installation of bulk-power system electric equipment, including associated software and digital capabilities, that could pose cybersecurity or operational risks.
The executive order targets equipment designed, manufactured, or supplied by entities subject to the jurisdiction of a country considered a U.S. foreign adversary. While not explicitly naming China, the order's language and context suggest it is directed at Chinese suppliers, similar to previous restrictions on companies like Huawei.
The order defines "foreign adversary" broadly as any foreign government or non-government person engaged in conduct significantly adverse to U.S. national security. The prohibition applies to equipment used in the "bulk power system," which includes transmission facilities and control systems, as well as generation facilities necessary for system reliability. It does not appear to apply to distributed energy or distribution system equipment, or standalone storage.
Before the prohibition takes effect, the U.S. Department of Energy must determine that a transaction poses an undue risk. Energy Secretary Dan Brouillette was given 150 days to coordinate with the Secretaries of Defense and Homeland Security, the Director of National Intelligence, and other agency heads to publish rules and regulations to implement the order.