[Congressional Record Volume 170, Number 119 (Tuesday, July 23, 2024)]
[Senate]
[Pages S5228-S5229]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2958. Mr. SCOTT of Florida submitted an amendment intended to be
proposed by him to the bill S. 4638, to authorize appropriations for
fiscal year 2025 for military activities of the Department of Defense,
for military construction, and for defense activities of the Department
of Energy, to prescribe military personnel strengths for such fiscal
year, and for other purposes; which was ordered to lie on the table; as
follows:
At the end of subtitle H of title X, add the following:
SEC. 10__. 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
[[Page S5229]]
(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.
(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 defense 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, and
update, as necessary, 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.
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