Securing the United States Bulk-Power System

The order declares a national emergency and prohibits any person subject to U.S. jurisdiction from acquiring, importing, transferring, or installing bulk-power system electric equipment — including large transformers, generators, circuit breakers, and industrial control systems — when the transaction involves a foreign adversary's interest and the Secretary of Energy determines it poses undue risk of sabotage, catastrophic infrastructure failure, or national security harm. The prohibition applies to transactions initiated after the signing date. The Secretary of Energy may issue licenses, negotiate mitigation agreements, and publish lists of pre-qualified equipment and vendors to create safe-harbor pathways.

The order also establishes a Task Force on Federal Energy Infrastructure Procurement Policies chaired by the Secretary of Energy, composed of senior cabinet and intelligence officials, to develop consistent procurement standards for federal agencies and submit recommendations to the Federal Acquisition Regulatory Council. The Task Force must report annually to the President. The order does not itself identify specific countries or vendors as foreign adversaries — that determination is left to future rulemaking.

Any U.S. person or entity that acquires, imports, transfers, or installs major electrical grid equipment with any foreign-country interest; electric utilities and grid operators sourcing equipment internationally; federal agencies procuring energy infrastructure; and foreign equipment vendors seeking access to the U.S. bulk-power market.

Utilities and grid operators that rely on foreign-sourced transformers, generators, or control systems for transmission infrastructure now face potential transaction prohibitions and must seek government approval or mitigation agreements. Equipment deals initiated after May 1, 2020 are immediately subject to review, creating compliance costs and supply chain uncertainty across the electricity sector.

The Secretary of Energy is the central implementing authority, acting in coordination with Defense, Homeland Security, and the Director of National Intelligence. Transaction prohibitions are self-executing on signing, but the Secretary has discretion to grant licenses and negotiate mitigation measures as preconditions to approval. Within 150 days, the Secretary must publish formal rules defining foreign adversaries, procedures, and criteria. The Task Force operates on an ongoing basis until its procurement-policy objectives are met, submitting annual reports. The FAR Council has 180 days after receiving Task Force recommendations to consider a rulemaking to embed those standards in federal acquisition rules. IEEPA provides enforcement authority, including civil and criminal penalties.