[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

                              ----------                              


              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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