President Trump on Aug. 26 signed Executive Order (EO) 14420 -- Declaring a National Emergency to Secure the United States Bulk-Power System, which would limit the importation of foreign-produced bulk-power system electric equipment.
The EO finds that the use of foreign bulk-power system electric equipment constitutes an “unusual and extraordinary threat” to national security and bans its importation.
The Secretary of Energy is directed to identify the specific equipment and manufacturers (“covered foreign entities”) that should be subject to the prohibition within 120 days. The secretary is authorized to make exceptions or impose conditions to the use or importation of equipment on a case-by-case basis.
Before doing so, the secretary is directed to “consider the effects on reliability and safety, the availability of secure replacements, and the continuity of essential service, and may establish a phased compliance.”
The EO defines “bulk-power system” and “bulk-power system electric equipment” broadly.
Notably, the EO specifies that, for the purposes of the order, the definition of bulk-power system includes “transmission lines rated at 69 kV or more, but does not include facilities used in the local distribution of electric energy.”
In determining whether equipment is within the scope of the EO, the secretary is authorized to consider “associated software and firmware, remote access capabilities, lifecycle maintenance and update mechanisms, and other supply chain dependencies.”
It is also notable that the EO specifically states that “items not listed in the definition of bulk-power system electric equipment or that have broader application beyond the bulk-power system unrelated to the national security concerns identified in this order are outside the scope of this order.”
Actions in President Trump’s First Term
In his first term, President Trump issued a similar order, EO 13920, Securing the United States Bulk-Power System.
Pursuant to that EO, DOE subsequently issued a request for information to “understand the energy industry’s current practices to identify and mitigate vulnerabilities in the supply chain for components of the bulk power system.” APPA responded to the RFI, asking DOE to take a risk-based approach that was cost-conscious and had a national defense strategic focus.
In December 2020, then-Secretary Brouillette issued an order prohibiting utilities that supply critical defense facilities from procuring specific electric equipment from China.
Upon taking office, President Biden suspended and then revoked the Brouillette order, and issued a separate RFI, which APPA also responded to, as part of what it characterized as a “larger and coordinated effort.”
APPA said it will continue to report on developments related to the EO as necessary.
