What This Bill Does
This bill stops owners and operators of defense critical electric infrastructure (power systems important to national security) from buying or using certain power equipment that foreign adversaries own, control or influence. It requires the Secretary of Energy to create rules identifying which equipment and foreign countries pose security risks to the nation's power grid.
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Who It Affects
- Owners and operators of defense critical electric infrastructure
- Companies that make or sell power equipment like transformers and circuit breakers
- The U.S. Department of Energy
- The U.S. Department of Defense
- The Department of Homeland Security
- The Office of National Intelligence
- Other federal agencies involved in power security
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Key Provisions
- No one can buy, acquire, install or transfer power equipment for defense critical electric infrastructure if a foreign adversary owns or controls it, unless the Secretary of Energy approves it with safety measures in place (Sec. 2(b)(1))
- The Secretary of Energy must create rules within 150 days to decide which countries and companies count as "foreign adversaries" and which equipment poses undue security risks (Sec. 2(c)(2)(A))
- The Secretary of Energy can identify existing power equipment already in use that poses security risks and recommend ways to isolate, monitor or replace it (Sec. 2(c)(3))
- The Secretary of Energy can prequalify certain equipment and vendors that meet security standards for future purchases (Sec. 2(b)(4))
- The Secretary of Energy must report to Congress about progress implementing this bill (Sec. 2(d))
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What Changes
If this becomes law, owners and operators of critical power infrastructure cannot enter into new contracts to buy power equipment from companies owned or controlled by foreign adversaries. These restrictions apply even to contracts or permits already signed before the law passes. The Secretary of Energy gains authority to review power equipment purchases and can stop them or require safety measures to protect national security.
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Important Definitions
- **Bulk-power system:** The nation's high-voltage power transmission lines and related equipment (transmission lines rated at 69,000 volts or higher)
- **Covered equipment:** Machines used in power substations, control rooms and generating stations, including power transformers, circuit breakers, cooling systems and computer software that runs this equipment
- **Defense critical electric infrastructure:** Power infrastructure that is critical to national defense, as defined in the Federal Power Act
- **Critical defense facility:** A facility critical to U.S. defense that could be damaged if its electrical power supply is cut off
- **Foreign adversary:** Any foreign government or foreign person engaged in patterns of serious conduct that harm the national security of the United States or its allies, or the security and safety of Americans
- **Transaction:** The acquisition, importation, transfer or installation of power equipment by any person subject to U.S. jurisdiction
- **United States person:** A U.S. citizen, someone with permanent legal residence, any company organized under U.S. law, or any person in the United States
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Effective Date
Not specified in bill text
II
118TH CONGRESS
1ST SESSION
S. 1050
To secure the bulk-power system in the United States.
IN THE SENATE OF THE UNITED STATES
MARCH 29, 2023
Mr. SCOTT of Florida (for himself, Mr. RUBIO, Mr. MARSHALL, and Mr. COT-
TON) introduced the following bill; which was read twice and referred to
the Committee on Energy and Natural Resources
A BILL
To secure the bulk-power system in the United States.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Protect American
4
Power Infrastructure Act’’.
5
SEC. 2. SECURING THE BULK-POWER SYSTEM.
6
(a) DEFINITIONS.—In this section:
7
(1) BULK-POWER SYSTEM.—
8
(A) IN GENERAL.—The term ‘‘bulk-power
9
system’’ has the meaning given the term in sec-
10
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tion 215(a) of the Federal Power Act (16
1
U.S.C. 824o(a)).
2
(B) INCLUSION.—The term ‘‘bulk-power
3
system’’ includes transmission lines rated at
4
69,000 volts (69 kV) or higher.
5
(2) COVERED EQUIPMENT.—The term ‘‘covered
6
equipment’’ means items used in bulk-power system
7
substations, control rooms, or power generating sta-
8
tions, including—
9
(A)(i) power transformers with a low-side
10
voltage rating of 69,000 volts (69 kV) or high-
11
er; and
12
(ii) associated control and protection sys-
13
tems, such as load tap changers, cooling sys-
14
tems, and sudden pressure relays;
15
(B)(i) generator step-up (GSU) trans-
16
formers with a high-side voltage rating of
17
69,000 volts (69 kV) or higher; and
18
(ii) associated control and protection sys-
19
tems, such as load tap changers, cooling sys-
20
tems, and sudden pressure relays;
21
(C) circuit breakers operating at 69,000
22
volts (69 kV) or higher;
23
(D) reactive power equipment rated at
24
69,000 volts (69 kV) or higher; and
25
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•S 1050 IS
(E) microprocessing software and firmware
1
that—
2
(i) is installed in any equipment de-
3
scribed in subparagraphs (A) through (D);
4
or
5
(ii) is used in the operation of any of
6
the items described in those subpara-
7
graphs.
8
(3) CRITICAL DEFENSE FACILITY.—
9
(A) IN GENERAL.—The term ‘‘critical de-
10
fense facility’’ means a facility that—
11
(i) is critical to the defense of the
12
United States; and
13
(ii) is vulnerable to a disruption of the
14
supply of electric energy provided to that
15
facility by an external provider.
16
(B) INCLUSION.—The term ‘‘critical de-
17
fense facility’’ includes a facility designated as
18
a critical defense facility by the Secretary of
19
Energy under section 215A(c) of the Federal
20
Power Act (16 U.S.C. 824o–1(c)).
21
(4) CRITICAL
ELECTRIC
INFRASTRUCTURE.—
22
The term ‘‘critical electric infrastructure’’ has the
23
meaning given the term in section 215A(a) of the
24
Federal Power Act (16 U.S.C. 824o–1(a)).
25
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(5) DEFENSE CRITICAL ELECTRIC INFRASTRUC-
1
TURE.—The term ‘‘defense critical electric infra-
2
structure’’ has the meaning given the term in section
3
215A(a) of the Federal Power Act (16 U.S.C. 824o–
4
1(a)).
5
(6) ENTITY.—The term ‘‘entity’’ means a part-
6
nership, association, trust, joint venture, corpora-
7
tion, group, subgroup, or other organization.
8
(7) FOREIGN ADVERSARY.—The term ‘‘foreign
9
adversary’’ means any foreign government or foreign
10
nongovernment person engaged in a long-term pat-
11
tern or serious instances of conduct significantly ad-
12
verse to—
13
(A) the national security of—
14
(i) the United States; or
15
(ii) allies of the United States; or
16
(B) the security and safety of United
17
States persons.
18
(8) PERSON.—The term ‘‘person’’ means an in-
19
dividual or entity.
20
(9) PROCUREMENT.—The term ‘‘procurement’’
21
means the process of acquiring, through purchase,
22
by contract and through the use of appropriated
23
funds, supplies or services, including installation
24
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•S 1050 IS
services, by and for the use of the Federal Govern-
1
ment.
2
(10) TRANSACTION.—The term ‘‘transaction’’
3
means the acquisition, importation, transfer, or in-
4
stallation of any bulk-power system electric equip-
5
ment by any person, or with respect to any property,
6
subject to the jurisdiction of the United States.
7
(11) UNITED
STATES
PERSON.—The term
8
‘‘United States person’’ means—
9
(A) an individual who is—
10
(i) a citizen of the United States; or
11
(ii) an alien lawfully admitted for per-
12
manent residence in the United States;
13
(B) an entity organized under the laws of
14
the United States or any jurisdiction within the
15
United States, including a foreign branch of
16
such an entity; and
17
(C) any person in the United States.
18
(b) PROHIBITION.—
19
(1) IN
GENERAL.—Except as otherwise pro-
20
vided in this subsection, no person that is the owner
21
or operator of defense critical electric infrastructure
22
may engage in any transaction relating to that de-
23
fense critical electric infrastructure that involves any
24
covered equipment in which a foreign adversary has
25
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•S 1050 IS
an ownership or any other interest, including
1
through an interest in a contract for the provision
2
of the covered equipment, over which a foreign ad-
3
versary has control, or with respect to which a for-
4
eign adversary exercises influence, including any
5
transaction that—
6
(A) is initiated after the date of enactment
7
of this Act; and
8
(B) the Secretary of Energy, in coordina-
9
tion with the Director of the Office of Manage-
10
ment and Budget and in consultation with the
11
Secretary of Defense, the Secretary of Home-
12
land Security, the Director of National Intel-
13
ligence, and the heads of other appropriate
14
Federal agencies, as determined by the Sec-
15
retary of Energy, determines—
16
(i) involves covered equipment de-
17
signed, developed, manufactured, or sup-
18
plied by persons owned by, controlled by,
19
or subject to the jurisdiction or direction of
20
a foreign adversary; and
21
(ii) poses an undue risk of cata-
22
strophic effects on the security or resil-
23
iency of defense critical electric infrastruc-
24
ture in the United States.
25
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(2) MITIGATION MEASURES.—
1
(A) IN GENERAL.—The Secretary of En-
2
ergy, in consultation with the heads of other
3
Federal agencies, as appropriate, may—
4
(i) in accordance with subparagraph
5
(B), approve a transaction or class of
6
transactions prohibited under paragraph
7
(1); and
8
(ii) design or negotiate measures to
9
mitigate any concerns identified in making
10
determinations under paragraph (1)(B)
11
with respect to that transaction or class of
12
transactions.
13
(B) PRECONDITION TO APPROVAL OF OTH-
14
ERWISE PROHIBITED TRANSACTION.—The Sec-
15
retary of Energy shall implement the measures
16
described in subparagraph (A)(ii) before ap-
17
proving a transaction or class of transactions
18
that would otherwise be prohibited under para-
19
graph (1).
20
(3) APPLICATION.—
21
(A) IN
GENERAL.—The prohibition de-
22
scribed in paragraph (1) shall apply to a trans-
23
action described in that paragraph regardless of
24
whether—
25
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(i) a contract has been entered into
1
with respect to that transaction before the
2
date of enactment of this Act; or
3
(ii) a license or permit has been
4
issued or granted with respect to that
5
transaction before the date of enactment of
6
this Act.
7
(B) CONTRARY LAW.—The prohibition de-
8
scribed in paragraph (1) shall apply to each
9
transaction described in that paragraph only to
10
the extent not otherwise provided by—
11
(i) another statute; or
12
(ii) a regulation, order, directive, or li-
13
cense issued pursuant to this section.
14
(4) PREQUALIFICATION.—
15
(A) IN GENERAL.—The Secretary of En-
16
ergy, in consultation with the heads of other
17
Federal agencies, as appropriate, may—
18
(i) establish and publish criteria for
19
recognizing particular covered equipment
20
and particular vendors in the market for
21
covered equipment as prequalified for fu-
22
ture transactions; and
23
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•S 1050 IS
(ii) apply those criteria to establish
1
and publish, and update, as necessary, a
2
list of prequalified equipment and vendors.
3
(B) SAVINGS PROVISION.—Nothing in this
4
paragraph limits the authority of the Secretary
5
of Energy under this subsection to prohibit or
6
otherwise regulate any transaction involving
7
prequalified equipment or vendors.
8
(c) IMPLEMENTATION.—
9
(1) IMPLEMENTATION BY THE SECRETARY OF
10
ENERGY.—The Secretary of Energy shall take such
11
actions as the Secretary determines to be necessary
12
to implement this section, including—
13
(A) directing the timing and manner of the
14
cessation of pending and future transactions
15
prohibited under subsection (b)(1);
16
(B) adopting appropriate rules and regula-
17
tions; and
18
(C) exercising any applicable power grant-
19
ed to the President by the International Emer-
20
gency Economic Powers Act (50 U.S.C. 1701 et
21
seq.) and delegated to the Secretary.
22
(2) REQUIRED RULEMAKING.—
23
(A) IN
GENERAL.—Not later than 150
24
days after the date of enactment of this Act,
25
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the Secretary of Energy, in consultation with
1
the Secretary of Defense, the Secretary of
2
Homeland Security, the Director of National
3
Intelligence, and the heads of other appropriate
4
Federal agencies, as determined by the Sec-
5
retary of Energy, shall issue rules or regula-
6
tions to implement this section.
7
(B) AUTHORITY.—A rule or regulation
8
issued under subparagraph (A) may—
9
(i) determine that particular countries
10
or persons are foreign adversaries exclu-
11
sively for the purposes of this section;
12
(ii) identify persons owned by, con-
13
trolled by, or subject to the jurisdiction or
14
direction of, foreign adversaries exclusively
15
for the purposes of this section;
16
(iii) identify particular equipment or
17
countries with respect to which trans-
18
actions involving covered equipment war-
19
rant particular scrutiny under this section;
20
and
21
(iv) identify a mechanism and relevant
22
factors for the negotiation of agreements
23
to mitigate concerns identified in making
24
determinations under subsection (b)(1)(B).
25
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(3)
IDENTIFICATION
OF
CERTAIN
EQUIP-
1
MENT.—As soon as practicable after the date of en-
2
actment of this Act, the Secretary of Energy, in con-
3
sultation with the Secretary of Defense, the Sec-
4
retary of the Interior, the Secretary of Homeland
5
Security, the Director of National Intelligence, the
6
Board of Directors of the Tennessee Valley Author-
7
ity, and the heads of other appropriate Federal
8
agencies, as determined by the Secretary of Energy,
9
shall—
10
(A) identify existing covered equipment
11
that—
12
(i) is designed, developed, manufac-
13
tured, or supplied by persons owned by,
14
controlled by, or subject to the jurisdiction
15
or direction of a foreign adversary; and
16
(ii) poses an undue risk of cata-
17
strophic effects on the security or resil-
18
iency of critical electric infrastructure in
19
the United States; and
20
(B) develop recommendations on ways to
21
identify, isolate, monitor, or replace any covered
22
equipment identified under subparagraph (A)
23
as soon as practicable.
24
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(4) COORDINATION
AND
INFORMATION
SHAR-
1
ING.—The Secretary of Energy shall work with the
2
Secretary of Defense, the Secretary of the Interior,
3
the Secretary of Homeland Security, the Director of
4
National Intelligence, the Board of Directors of the
5
Tennessee Valley Authority, and the heads of other
6
appropriate Federal agencies, as determined by the
7
Secretary of Energy, to protect critical defense fa-
8
cilities from national security threats through—
9
(A) the coordination of the procurement of
10
energy infrastructure by the Federal Govern-
11
ment; and
12
(B) the sharing of risk information and
13
risk management practices to inform that pro-
14
curement.
15
(5) REQUIREMENT.—This section shall be im-
16
plemented—
17
(A) in a manner that is consistent with all
18
other applicable laws; and
19
(B) subject to the availability of appropria-
20
tions.
21
(d) REPORTS TO CONGRESS.—The Secretary of En-
22
ergy shall submit to Congress periodic reports describing
23
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any progress made in implementing, or otherwise relating
1
to the implementation of, this section.
2
Æ
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