[Congressional Record Volume 167, Number 87 (Wednesday, May 19, 2021)]
[Senate]
[Pages S3135-S3136]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1614. Mr. SCOTT of Florida submitted an amendment intended to be 
proposed to amendment SA 1502 proposed by Mr. Schumer to the bill S. 
1260, to establish a new Directorate for Technology and Innovation in 
the National Science Foundation, to establish a regional technology hub 
program, to require a strategy and report on economic security, 
science, research, innovation, manufacturing, and job creation, to 
establish a critical supply chain resiliency program, and for other 
purposes; which was ordered to lie on the table; as follows:

        At the appropriate place in title III of division F, 
     insert the following:

     SEC. 63__. SECURING THE BULK-POWER SYSTEM.

       (a) Definitions.--In this section:
       (1) Bulk-power system.--
       (A) In general.--The term ``bulk-power system'' has the 
     meaning given the term in section 215(a) of the Federal Power 
     Act (16 U.S.C. 824o(a)).
       (B) Inclusion.--The term ``bulk-power system'' includes 
     transmission lines rated at 69,000 volts (69 kV) or higher.
       (2) Covered equipment.--The term ``covered equipment'' 
     means items used in bulk-power system substations, control 
     rooms, or power generating stations, including--
       (A)(i) power transformers with a low-side voltage rating of 
     69,000 volts (69 kV) or higher; and
       (ii) associated control and protection systems, such as 
     load tap changers, cooling systems, and sudden pressure 
     relays;
       (B)(i) generator step-up (GSU) transformers with a high-
     side voltage rating of 69,000 volts (69 kV) or higher; and
       (ii) associated control and protection systems, such as 
     load tap changers, cooling systems, and sudden pressure 
     relays;
       (C) circuit breakers operating at 69,000 volts (69 kV) or 
     higher;
       (D) reactive power equipment rated at 69,000 volts (69 kV) 
     or higher; and
       (E) microprocessing software and firmware that--
       (i) is installed in any equipment described in 
     subparagraphs (A) through (D); or
       (ii) is used in the operation of any of the items described 
     in those subparagraphs.

[[Page S3136]]

       (3) Critical defense facility.--
       (A) In general.--The term ``critical defense facility'' 
     means a facility that--
       (i) is critical to the defense of the United States; and
       (ii) is vulnerable to a disruption of the supply of 
     electric energy provided to that facility by an external 
     provider.
       (B) Inclusion.--The term ``critical defense facility'' 
     includes a facility designated as a critical defense facility 
     by the Secretary of Energy under section 215A(c) of the 
     Federal Power Act (16 U.S.C. 824o-1(c)).
       (4) Critical electric infrastructure.--The term ``critical 
     electric infrastructure'' has the meaning given the term in 
     section 215A(a) of the Federal Power Act (16 U.S.C. 824o-
     1(a)).
       (5) Defense critical electric infrastructure.--The term 
     ``defense critical electric infrastructure'' has the meaning 
     given the term in section 215A(a) of the Federal Power Act 
     (16 U.S.C. 824o-1(a)).
       (6) Entity.--The term ``entity'' means a partnership, 
     association, trust, joint venture, corporation, group, 
     subgroup, or other organization.
       (7) Foreign adversary.--The term ``foreign adversary'' 
     means any foreign government or foreign nongovernment person 
     engaged in a long-term pattern or serious instances of 
     conduct significantly adverse to--
       (A) the national security of--
       (i) the United States; or
       (ii) allies of the United States; or
       (B) the security and safety of United States persons.
       (8) Person.--The term ``person'' means an individual or 
     entity.
       (9) Procurement.--The term ``procurement'' means the 
     process of acquiring, through purchase, by contract and 
     through the use of appropriated funds, supplies or services, 
     including installation services, by and for the use of the 
     Federal Government.
       (10) Transaction.--The term ``transaction'' means the 
     acquisition, importation, transfer, or installation of any 
     bulk-power system electric equipment by any person, or with 
     respect to any property, subject to the jurisdiction of the 
     United States.
       (11) United states person.--The term ``United States 
     person'' means--
       (A) an individual who is--
       (i) a citizen of the United States; or
       (ii) an alien lawfully admitted for permanent residence in 
     the United States;
       (B) an entity organized under the laws of the United States 
     or any jurisdiction within the United States, including a 
     foreign branch of such an entity; and
       (C) any person in the United States.
       (b) Prohibition.--
       (1) In general.--Except as otherwise provided in this 
     subsection, no person that is the owner or operator of 
     defense critical electric infrastructure may engage in any 
     transaction relating to that defense critical electric 
     infrastructure that involves any covered equipment in which a 
     foreign adversary has an ownership or any other interest, 
     including through an interest in a contract for the provision 
     of the covered equipment, over which a foreign adversary has 
     control, or with respect to which a foreign adversary 
     exercises influence, including any transaction that--
       (A) is initiated after the date of enactment of this Act; 
     and
       (B) the Secretary of Energy, 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 
     the heads of other appropriate Federal agencies, as 
     determined by the Secretary of Energy, determines--
       (i) involves covered 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) poses an undue risk of catastrophic effects on the 
     security or resiliency of critical electric infrastructure in 
     the United States.
       (2) Mitigation measures.--
       (A) In general.--The Secretary of Energy, in consultation 
     with the heads of other Federal agencies, as appropriate, 
     may--
       (i) in accordance with subparagraph (B), approve a 
     transaction or class of transactions prohibited under 
     paragraph (1); and
       (ii) design or negotiate measures to mitigate any concerns 
     identified in making determinations under paragraph (1)(B) 
     with respect to that transaction or class of transactions.
       (B) Precondition to approval of otherwise prohibited 
     transaction.--The Secretary of Energy shall implement the 
     measures described in subparagraph (A)(ii) before approving a 
     transaction or class of transactions that would otherwise be 
     prohibited under paragraph (1).
       (3) Application.--
       (A) In general.--The prohibition described in paragraph (1) 
     shall apply to a transaction described in that paragraph 
     regardless of whether--
       (i) a contract has been entered into with respect to that 
     transaction before the date of enactment of this Act; or
       (ii) a license or permit has been issued or granted with 
     respect to that transaction before the date of enactment of 
     this Act.
       (B) Contrary law.--The prohibition described in paragraph 
     (1) shall apply to each transaction described in that 
     paragraph only to the extent not otherwise provided by--
       (i) another statute; or
       (ii) a regulation, order, directive, or license issued 
     pursuant to this section.
       (4) Prequalification.--
       (A) In general.--The Secretary of Energy, in consultation 
     with the heads of other Federal agencies, as appropriate, 
     may--
       (i) establish and publish criteria for recognizing 
     particular covered equipment and particular vendors in the 
     market for covered equipment as prequalified for future 
     transactions; and
       (ii) apply those criteria to establish and publish a list 
     of prequalified equipment and vendors.
       (B) Savings provision.--Nothing in this paragraph limits 
     the authority of the Secretary of Energy under this 
     subsection to prohibit or otherwise regulate any transaction 
     involving prequalified equipment or vendors.
       (c) Implementation.--
       (1) Implementation by the secretary of energy.--The 
     Secretary of Energy shall take such actions as the Secretary 
     determines to be necessary to implement this section, 
     including--
       (A) directing the timing and manner of the cessation of 
     pending and future transactions prohibited under subsection 
     (b)(1);
       (B) adopting appropriate rules and regulations; and
       (C) exercising any applicable power granted to the 
     President by the International Emergency Economic Powers Act 
     (50 U.S.C. 1701 et seq.) and delegated to the Secretary.
       (2) Required rulemaking.--
       (A) In general.--Not later than 150 days after the date of 
     enactment of this Act, the Secretary of Energy, in 
     consultation with the Secretary of Defense, the Secretary of 
     Homeland Security, the Director of National Intelligence, and 
     the heads of other appropriate Federal agencies, as 
     determined by the Secretary of Energy, shall issue rules or 
     regulations to implement this section.
       (B) Authority.--A rule or regulation issued under 
     subparagraph (A) may--
       (i) determine that particular countries or persons are 
     foreign adversaries exclusively for the purposes of this 
     section;
       (ii) identify persons owned by, controlled by, or subject 
     to the jurisdiction or direction of, foreign adversaries 
     exclusively for the purposes of this section;
       (iii) identify particular equipment or countries with 
     respect to which transactions involving covered equipment 
     warrant particular scrutiny under this section; and
       (iv) identify a mechanism and relevant factors for the 
     negotiation of agreements to mitigate concerns identified in 
     making determinations under subsection (b)(1)(B).
       (3) Identification of certain equipment.--As soon as 
     practicable after the date of enactment of this Act, the 
     Secretary of Energy, 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 other appropriate Federal agencies, as determined by 
     the Secretary of Energy, shall--
       (A) identify existing covered equipment that--
       (i) is designed, developed, manufactured, or supplied by 
     persons owned by, controlled by, or subject to the 
     jurisdiction or direction of a foreign adversary; and
       (ii) poses an undue risk of catastrophic effects on the 
     security or resiliency of critical electric infrastructure in 
     the United States; and
       (B) develop recommendations on ways to identify, isolate, 
     monitor, or replace any covered equipment identified under 
     subparagraph (A) as soon as practicable.
       (4) Coordination and information sharing.--The Secretary of 
     Energy shall work 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 
     other appropriate Federal agencies, as determined by the 
     Secretary of Energy, to protect critical defense facilities 
     from national security threats through--
       (A) the coordination of the procurement of energy 
     infrastructure by the Federal Government; and
       (B) the sharing of risk information and risk management 
     practices to inform that procurement.
       (5) Requirement.--This section shall be implemented--
       (A) in a manner that is consistent with all other 
     applicable laws; and
       (B) subject to the availability of appropriations.
       (d) Reports to Congress.--The Secretary of Energy shall 
     submit to Congress periodic reports describing any progress 
     made in implementing, or otherwise relating to the 
     implementation of, this section.
                                 ______