[House Document 116-124]
[From the U.S. Government Publishing Office]
116th Congress, 2d Session - - - - - - - - - House Document 116-124
SECURING THE UNITED STATES BULK-POWER SYSTEM
__________
COMMUNICATION
from
THE PRESIDENT OF THE UNITED STATES
transmitting
AN EXECUTIVE ORDER DECLARING A NATIONAL EMERGENCY TO DEAL WITH THE
THREAT POSED BY THE UNRESTRICTED ACQUISITION OR USE IN THE UNITED
STATES OF BULK-POWER SYSTEM ELECTRIC EQUIPMENT DESIGNED, DEVELOPED,
MANUFACTURED, OR SUPPLIED BY PERSONS OWNED BY, CONTROLLED BY, OR
SUBJECT TO THE JURISDICTION OR DIRECTION OF FOREIGN ADVERSARIES,
PURSUANT TO 50 U.S.C. 1621(a); PUBLIC LAW 94-412, SEC. 201(a); (90
STAT. 1255) AND 50 U.S.C. 1703(b); PUBLIC LAW 95-223, SEC. 204(b); (91
STAT. 1627)
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
May 1, 2020.--Referred to the Committee on Foreign Affairs and ordered
to be printed
__________
U.S. GOVERNMENT PUBLISHING OFFICE
99-011 WASHINGTON : 2020
The White House,
Washington, DC, May 1, 2020.
Hon. Nancy Pelosi,
Speaker of the House of Representatives,
Washington, DC.
Dear Madam Speaker: Pursuant to the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the
National Emergencies Act (50 U.S.C. 1601 et seq.), and section
301 of title 3, United States Code, I hereby report that I have
issued an Executive Order declaring a national emergency to
deal with the threat posed by the unrestricted acquisition or
use in the United States of bulk-power system electric
equipment designed, developed, manufactured, or supplied by
persons owned by, controlled by, or subject to the jurisdiction
or direction of foreign adversaries.
Foreign adversaries are increasingly creating and
exploiting vulnerabilities in the United States bulk-power
system. The bulk-power system provides the electricity that
supports our national defense, our vital emergency services,
our critical infrastructure, our economy, and our way of life.
The bulk-power system is a target of those seeking to commit
malicious acts against the United States and its people,
including malicious cyber activities. Although maintaining an
open investment climate in bulk-power system electric
equipment, and in the United States economy more generally, is
important for the overall growth and prosperity of the United
States, such openness must be balanced with the need to protect
our Nation against a critical national security threat. To deal
with this threat, additional steps are required to protect the
security, integrity, and reliability of bulk-power system
electric equipment used in the United States.
The Executive Order prohibits certain future transactions
involving bulk-power system electric equipment where the
Secretary of Energy (Secretary), in coordination with the
Director of the Office of Management and Budget and in
consultation with the Secretary of Defense, the Secretary of
Homeland Security, the Director of National Intelligence, and,
as appropriate, the heads of other executive departments and
agencies (agencies), has determined that:
(i) the transaction involves bulk-power system
electric equipment designed, developed, manufactured,
or supplied, by persons owned by, controlled by, or
subject to the jurisdiction or direction of a foreign
adversary; and
(ii) the transaction:
(A) poses an undue risk of sabotage to or
subversion of the design, integrity,
manufacturing, production, distribution,
installation, operation, or maintenance of the
bulk-power system in the United States;
(B) poses an undue risk of catastrophic
effects on the security or resiliency of United
States critical infrastructure or the economy
of the United States; or
(C) otherwise poses an unacceptable risk to
the national security of the United States or
the security and safety of United States
persons.
The Executive Order also establishes a Task Force on
Federal Energy Infrastructure Procurement Policies Related to
National Security.
I have delegated to the Secretary the authority to take
such actions, including directing the timing and manner of the
cessation of pending and future transactions prohibited
pursuant to the Executive Order, adopting appropriate rules and
regulations, and employing all other powers granted to the
President by IEEPA, as may be necessary to implement the
Executive Order. The heads of all agencies, including the Board
of Directors of the Tennessee Valley Authority, are directed to
take all appropriate measures within their authority to
implement the provisions of the Executive Order.
I am enclosing a copy of the Executive Order I have issued.
Sincerely,
Donald J. Trump.
Executive Order
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Securing the United States Bulk-Power System
By the authority vested in me as President by the
Constitution and the laws of the United States of America,
including the International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50
U.S.C. 1601 et seq.) (NEA), and section 301 of title 3, United
States Code,
I, DONALD J. TRUMP, President of the United States of
America, find that foreign adversaries are increasingly
creating and exploiting vulnerabilities in the United States
bulk-power system, which provides the electricity that supports
our national defense, vital emergency services, critical
infrastructure, economy, and way of life. The bulk-power system
is a target of those seeking to commit malicious acts against
the United States and its people, including malicious cyber
activities, because a successful attack on our bulk-power
system would present significant risks to our economy, human
health and safety, and would render the United States less
capable of acting in defense of itself and its allies. I
further find that the unrestricted acquisition or use in the
United States of bulk-power system electric equipment designed,
developed, manufactured, or supplied by persons owned by,
controlled by, or subject to the jurisdiction or direction of
foreign adversaries augments the ability of foreign adversaries
to create and exploit vulnerabilities in bulk-power system
electric equipment, with potentially catastrophic effects. I
therefore determine that the unrestricted foreign supply of
bulk-power system electric equipment constitutes an unusual and
extraordinary threat to the national security, foreign policy,
and economy of the United States, which has its source in whole
or in substantial part outside the United States. This threat
exists both in the case of individual acquisitions and when
acquisitions are considered as a class. Although maintaining an
open investment climate in bulk-power system electric
equipment, and in the United States economy more generally, is
important for the overall growth and prosperity of the United
States, such openness must be balanced with the need to protect
our Nation against a critical national security threat. To
address this threat, additional steps are required to protect
the security, integrity, and reliability of bulk-power system
electric equipment used in the United States. In light of these
findings, I hereby declare a national emergency with respect to
the threat to the United States bulk-power system.
Accordingly, I hereby order:
Section 1. Prohibitions and Implementation. (a) The
following actions are prohibited: any acquisition, importation,
transfer, or installation of any bulk-power system electric
equipment (transaction) by any person, or with respect to any
property, subject to the jurisdiction of the United States,
where the transaction involves any property in which any
foreign country or a national thereof has any interest
(including through an interest in a contract for the provision
of the equipment), where the transaction was initiated after
the date of this order, and where the Secretary of Energy
(Secretary), in coordination with the Director of the Office of
Management and Budget and in consultation with the Secretary of
Defense, the Secretary of Homeland Security, the Director of
National Intelligence, and, as appropriate, the heads of other
executive departments and agencies (agencies), has determined
that:
(i) the transaction involves bulk-power system
electric equipment designed, developed, manufactured,
or supplied, by persons owned by, controlled by, or
subject to the jurisdiction or direction of a foreign
adversary; and
(ii) the transaction:
(A) poses an undue risk of sabotage to or
subversion of the design, integrity,
manufacturing, production, distribution,
installation, operation, or maintenance of the
bulk-power system in the United States;
(B) poses an undue risk of catastrophic
effects on the security or resiliency of United
States critical infrastructure or the economy
of the United States; or
(C) otherwise poses an unacceptable risk to
the national security of the United States or
the security and safety of United States
persons.
(b) The Secretary, in consultation with the heads of other
agencies as appropriate, may at the Secretary's discretion
design or negotiate measures to mitigate concerns identified
under section 1(a) of this order. Such measures may serve as a
precondition to the approval by the Secretary of a transaction
or of a class of transactions that would otherwise be
prohibited pursuant to this order.
(c) The prohibitions in subsection (a) of this section
apply except to the extent provided by statutes, or in
regulations, orders, directives, or licenses that may be issued
pursuant to this order, and notwithstanding any contract
entered into or any license or permit granted prior to the date
of this order.
(d) The Secretary, in consultation with the heads of other
agencies as appropriate, may establish and publish criteria for
recognizing particular equipment and particular vendors in the
bulk-power system electric equipment market as pre-qualified
for future transactions; and may apply these criteria to
establish and publish a list of pre-qualified equipment and
vendors. Nothing in this provision limits the Secretary's
authority under this section to prohibit or otherwise regulate
any transaction involving pre-qualified equipment or vendors.
Sec. 2. Authorities. (a) The Secretary is hereby authorized
to take such actions, including directing the timing and manner
of the cessation of pending and future transactions prohibited
pursuant to section 1 of this order, adopting appropriate rules
and regulations, and employing all other powers granted to the
President by IEEPA as may be necessary to implement this order.
The heads of all agencies, including the Board of Directors of
the Tennessee Valley Authority, shall take all appropriate
measures within their authority as appropriate and consistent
with applicable law, to implement this order.
(b) Rules and regulations issued pursuant to this order
may, among other things, determine that particular countries or
persons are foreign adversaries exclusively for the purposes of
this order; identify persons owned by, controlled by, or
subject to the jurisdiction or direction of foreign adversaries
exclusively for the purposes of this order; identify particular
equipment or countries with respect to which transactions
involving bulk-power system electric equipment warrant
particular scrutiny under the provisions of this order;
establish procedures to license transactions otherwise
prohibited pursuant to this order; and identify a mechanism and
relevant factors for the negotiation of agreements to mitigate
concerns raised in connection with subsection 1(a) of this
order. Within 150 days of the date of this order, the
Secretary, in consultation with the Secretary of Defense, the
Secretary of Homeland Security, the Director of National
Intelligence, and, as appropriate, the heads of other agencies,
shall publish rules or regulations implementing the authorities
delegated to the Secretary by this order.
(c) The Secretary may, consistent with applicable law,
redelegate any of the authorities conferred on the Secretary
pursuant to this section within the Department of Energy.
(d) As soon as practicable, the Secretary, in consultation
with the Secretary of Defense, the Secretary of the Interior,
the Secretary of Homeland Security, the Director of National
Intelligence, the Board of Directors of the Tennessee Valley
Authority, and the heads of such other agencies as the
Secretary considers appropriate, shall:
(i) identify bulk-power system electric equipment
designed, developed, manufactured, or supplied, by
persons owned by, controlled by, or subject to the
jurisdiction or direction of a foreign adversary that
poses an undue risk of sabotage to or subversion of the
design, integrity, manufacturing, production,
distribution, installation, operation, or maintenance
of the bulk-power system in the United States, poses an
undue risk of catastrophic effects on the security or
resiliency of United States critical infrastructure or
the economy of the United States, or otherwise poses an
unacceptable risk to the national security of the
United States or the security and safety of United
States persons; and
(ii) develop recommendations on ways to identify,
isolate, monitor, or replace such items as soon as
practicable, taking into consideration overall risk to
the bulk-power system.
Sec. 3. Task Force on Federal Energy Infrastructure
Procurement Policies Related to National Security. (a) There is
hereby established a Task Force on Federal Energy
Infrastructure Procurement Policies Related to National
Security (Task Force), which shall work to protect the Nation
from national security threats through the coordination of
Federal Government procurement of energy infrastructure and the
sharing of risk information and risk management practices to
inform such procurement. The Task Force shall be chaired by the
Secretary or the Secretary's designee.
(b) In addition to the Chair of the Task Force (Chair), the
Task Force membership shall include the following heads of
agencies, or their designees:
(i) the Secretary of Defense;
(ii) the Secretary of the Interior;
(iii) the Secretary of Commerce;
(iv) the Secretary of Homeland Security;
(v) the Director of National Intelligence;
(vi) the Director of the Office of Management and
Budget; and
(vii) the head of any other agency that the Chair may
designate in consultation with the Secretary of Defense
and the Secretary of the Interior.
(c) The Task Force shall:
(i) develop a recommended consistent set of energy
infrastructure procurement policies and procedures for
agencies, to the extent consistent with law, to ensure
that national security considerations are fully
integrated across the Federal Government, and submit
such recommendations to the Federal Acquisition
Regulatory Council (FAR Council);
(ii) evaluate the methods and criteria used to
incorporate national security considerations into
energy security and cybersecurity policymaking;
(iii) consult with the Electricity Subsector
Coordinating Council and the Oil and Natural Gas
Subsector Coordinating Council in developing the
recommendations and evaluation described in subsections
(c)(i) through (ii) of this section; and
(iv) conduct any other studies, develop any other
recommendations, and submit any such studies and
recommendations to the President, as appropriate and as
directed by the Secretary.
(d) The Department of Energy shall provide administrative
support and funding for the Task Force, to the extent
consistent with applicable law.
(e) The Task Force shall meet as required by the Chair and,
unless extended by the Chair, shall terminate once it has
accomplished the objectives set forth in subsection (c) of this
section, as determined by the Chair, and completed the reports
described in subsection (f) of this section.
(f) The Task Force shall submit to the President, through
the Chair and the Director of the Office of Management and
Budget:
(i) a report within 1 year from the date of this
order;
(ii) a subsequent report at least once annually
thereafter while the Task Force remains in existence;
and
(iii) such other reports as appropriate and as
directed by the Chair.
(g) In the reports submitted under subsection (f) of this
section, the Task Force shall summarize its progress, findings,
and recommendations described in subsection (c) of this
section.
(h) Because attacks on the bulk-power system can originate
through the distribution system, the Task Force shall engage
with distribution system industry groups, to the extent
consistent with law and national security. Within 180 days of
receiving the recommendations pursuant to subsection (c)(i) of
this section, the FAR Council shall consider proposing for
notice and public comment an amendment to the applicable
provisions in the Federal Acquisition Regulation to implement
the recommendations provided pursuant to subsection (c)(i) of
this section.
Sec. 4. Definitions. For purposes of this order, the
following definitions shall apply:
(a) The term ``bulk-power system'' means (i) facilities and
control systems necessary for operating an interconnected
electric energy transmission network (or any portion thereof);
and (ii) electric energy from generation facilities needed to
maintain transmission reliability. For the purpose of this
order, this definition includes transmission lines rated at
69,000 volts (69 kV) or more, but does not include facilities
used in the local distribution of electric energy.
(b) The term ``bulk-power system electric equipment'' means
items used in bulk-power system substations, control rooms, or
power generating stations, including reactors, capacitors,
substation transformers, current coupling capacitors, large
generators, backup generators, substation voltage regulators,
shunt capacitor equipment, automatic circuit reclosers,
instrument transformers, coupling capacity voltage
transformers, protective relaying, metering equipment, high
voltage circuit breakers, generation turbines, industrial
control systems, distributed control systems, and safety
instrumented systems. Items not included in the preceding list
and that have broader application of use beyond the bulk-power
system are outside the scope of this order.
(c) The term ``entity'' means a partnership, association,
trust, joint venture, corporation, group, subgroup, or other
organization.
(d) The term ``foreign adversary'' means any foreign
government or foreign non-government person engaged in a long-
term pattern or serious instances of conduct significantly
adverse to the national security of the United States or its
allies or the security and safety of United States persons.
(e) The term ``person'' means an individual or entity.
(f) The term ``procurement'' means the acquiring by
contract with appropriated funds of supplies or services,
including installation services, by and for the use of the
Federal Government, through purchase, whether the supplies or
services are already in existence or must be created,
developed, demonstrated, and evaluated.
(g) The term ``United States person'' means any United
States citizen, permanent resident alien, entity organized
under the laws of the United States or any jurisdiction within
the United States (including foreign branches), or any person
in the United States.
Sec. 5. Recurring and Final Reports to the Congress. The
Secretary is hereby authorized to submit recurring and final
reports to the Congress regarding the national emergency
declared in this order, consistent with section 401(c) of the
NEA (50 U.S.C. 164l(c)) and section 204(c) of IEEPA (50 U.S.C.
1703(c)).
Sec. 6. General Provisions. (a) Nothing in this order shall
be construed to impair or otherwise affect:
(i) the authority granted by law to an executive
department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of
Management and Budget relating to budgetary,
administrative, or legislative proposals.
(b) This order shall be implemented consistent with
applicable law and subject to the availability of
appropriations.
(c) This order is not intended to, and does not, create any
right or benefit, substantive or procedural, enforceable at law
or in equity by any party against the United States, its
departments, agencies, or entities, its officers, employees, or
agents, or any other person.
Donald J. Trump.
The White House, May 1, 2020.
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