[House Report 119-304]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 119-304
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ELECTRIC SUPPLY CHAIN ACT
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September 19, 2025.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
----------------
Mr. Guthrie, from the Committee on Energy and Commerce,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 3638]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 3638) to direct the Secretary of Energy to
prepare periodic assessments and submit reports on the supply
chain for the generation and transmission of electricity, and
for other purposes, having considered the same, reports
favorably thereon without amendment and recommends that the
bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Committee Action................................................. 4
Committee Votes.................................................. 4
Oversight Findings and Recommendations........................... 6
New Budget Authority, Entitlement Authority, and Tax Expenditures 6
Congressional Budget Office Estimate............................. 6
Federal Mandates Statement....................................... 6
Statement of General Performance Goals and Objectives............ 6
Duplication of Federal Programs.................................. 6
Related Committee and Subcommittee Hearings...................... 6
Committee Cost Estimate.......................................... 8
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 8
Advisory Committee Statement..................................... 8
Applicability to Legislative Branch.............................. 8
Section-by-Section Analysis of the Legislation................... 8
Changes in Existing Law Made by the Bill, as Reported............ 8
Minority, Additional, or Dissenting Views........................ 9
PURPOSE AND SUMMARY
H.R. 3638, the ``Electric Supply Chain Act'', was
introduced by Representative Latta on May 29, 2025, and
referred to the Committee on Energy and Commerce on May 29,
2025. H.R. 3638 directs the Department of Energy (DOE) to
conduct periodic assessments of trends, risks, and
vulnerabilities in the supply chain for electric generation and
transmission infrastructure and grid components. As part of the
ongoing assessment of electric grid supply chains, the
Department would consult stakeholders across the electric grid
ecosystem and provide recommendations to address the identified
emerging issues and secure domestic supply chains. Periodic
reports from the Department would be submitted to the
Committee.
BACKGROUND AND NEED FOR LEGISLATION
The United States maintains one of the most advanced and
complex energy systems in the world. This includes an extensive
system for producing and transporting oil, natural gas, and
refined product; vast, complex electricity systems that produce
and deliver uninterrupted power; and the supply chains of the
energy resources and materials necessary for these energy
systems and technologies to be built, maintained, operated. Our
nation's economy, security, and the health and safety of its
citizens depend upon the reliable and uninterrupted supply of
fuels and electricity.
The urgency of addressing supply chains is particularly
acute as our nation is in the midst of a growing electric
reliability crisis while historic levels of demand seek
interconnection to the bulk power system. These increases
follow several decades of relatively flat electricity demand
growth. Data centers alone could consume upwards of 132 GW by
2028.\1\ The North American Electric Reliability Corporation
(NERC) projects peak demand to grow by 151 GW by 2034.\2\ At
the same time, NERC reports that as much as 115 GW of thermal
generation has announced to retire within the same time
period.\3\
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\1\Arman Shehabi et al., 2024 United States Data Center Energy
Usage Report, LAWRENCE BERKELY NATIONAL LABORATORY (Dec. 20, 2024),
[https://escholarship.org/uc/item/32d6m0d1].
\2\North American Reliability Corp. (NERC), 2024 Long-Term
Reliability Assessment (Dec. 2024, updated Jul. 15, 2025), https://
www.nerc.com/pa/RAPA/ra/Reliability%20
Assessments%20DL/NERC_Long%20Term%20Reliability%20Assessment_2024.pdf.
\3\Id.
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The nation's bulk power system, commonly referred to as the
most complex piece of machinery built by man, is comprised of
vast networks of high voltage transmission lines, fuel
distribution facilities, generating facilities, and other
critical infrastructure to ensure the delivery of adequate and
reliable supplies of electricity when Americans need it most.
Electricity is the backbone of the entire U.S. economy and is
the only product that must be consumed at the immediate point
of production. Our nation's reliance on electricity for key
parts of the economy will only rise with the development of
next generation industries, such as artificial intelligence.
Because of the criticality of the power sector, and
interconnected nature of the bulk power system, there is a need
to maintain constant vigilance against threats, disruptions,
supply chain constraints, or other vulnerabilities that may
inhibit our nation's ability to keep the lights on.
Underpinning the bulk power system is a complex supply
chain for components, equipment, and infrastructure utilized in
the bulk power system. Within this system there are myriad
pieces of equipment and grid components made up of processed
minerals that are necessary to manufacture equipment capable of
maintaining essential reliability services of the electric
system. As recently as 1990, the United States was the world's
number-one producer of minerals. By 2018, the United States had
fallen to 12th overall in global non-fuel minerals
production.\4\ The severity of this overdependence on other
countries for critical minerals was brought to the public's
attention by the report released during the Trump
administration, which found the United States relies on imports
for 31 of the 35 critical minerals necessary for the U.S.
defense and economy.\5\
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\4\Building a 100 Percent Clean Economy: Opportunities for and
Equitable, Low-Carbon Recovery: Hearing before the H. Subcomm. on
Environment and Climate Change of the H. Comm. On Energy and Com.,
116th Cong. (September 16, 2020) (testimony of Michelle Michot Foss).
\5\Unleashing American Energy, Lowering Energy Costs, and
Strengthening Supply Chains: Hearing before the H. Subcomms. Energy,
Climate and Grid Security, and also Environment, Manufacturing, and
Critical Minerals of the H. Comm. On Energy and Com., 118th Cong. (Feb.
7, 2023) (Testimony by the Honorable Mark W. Menezes).
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Disruption in the supply chains for manufactured grid
components and infrastructure could result in significant
delays to critical generation and transmission development
needed to address growing demands. As an example, beginning at
the onset of the COVID-19 pandemic, our nation faced severe
shortages of distribution and transmission transformers that
are essential components to ensure the delivery of reliable and
affordable electricity for businesses and households. In 2021,
lead times for new transformer orders reached over 150
weeks.\6\ These supply chain constraints were further
exacerbated by transformer demand stemming from significant
federal subsidies under the Biden administration for clean
energy technologies and renewable energy resources.\7\ As this
committee has found during hearings with regional grid
operators, the introduction of significant inverter based
resources onto the electric grid is also introducing novel
operational challenges for grid operators and new technologies
needed to maintain frequency and voltage support.
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\6\Isabel Schwartz & Kevin Jacobs, 4 years into the difficult
transformers market in the US, is there a potential end in sight?, WOOD
MACKENZIE (Jun. 27, 2024) https://www.woodmac.com/news/opinion/4-years-
into-a-difficult-transformers-market-in-the-us-is-there-a-potential-
end-in-sight/.
\7\Id.
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Most recently, some reports indicate growing backlogs on
orders for certain manufactured natural gas turbines, some of
which found upwards of seven-year lead times.\8\ Constraints on
natural gas turbine order backlogs may differ across supplier,
however, as one of the nation's largest gas turbine
manufacturers submitted letters to the Committee highlighting a
3-year timeline, which aligns with historical norms.
Constraints on orders of some natural gas turbines are largely
driven by the interest from data centers for AI and new
manufacturing facilities that require constant, baseload
electricity supplies that affordably come from natural gas
power plants.
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\8\Jared Anderson, US gas fired turbine wait times as much as seven
years; costs up sharply, S&P GLOBAL (May 20, 2025), https://
www.spglobal.com/commodity-insights/en/news-research/latest-news/
electric-power/052025-us-gas-fired-turbine-wait-times-as-much-as-seven-
years-costs-up-sharply.
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The Electric Supply Chain Act will ensure that the
Department of Energy remains in a proactive posture to uncover
and address supply chain constraints or vulnerabilities
affecting the bulk power system. The legislation would require
periodic assessments by the Department, along with close
coordination from industry stakeholders and members of
academia, to equip the federal government with the most
accurate data from the power sector in order to make informed
public policy decisions.
COMMITTEE ACTION
On April 30, 2025, the Subcommittee on Energy held a
legislative hearing on H.R. 3638, titled ``Assuring Abundant,
Reliable American Energy to Power Innovation.'' The
Subcommittee received testimony from:
Mike Goff, Acting Undersecretary of Energy,
U.S. Department of Energy;
David L. Morenoff, Acting General Counsel,
Federal Energy Regulatory Commission;
Terry Turpin, Director, Office of Energy
Projects, Federal Energy Regulatory Commission;
Jim Matheson, Chief Executive Officer,
National Rural Electric Cooperative Association;
Amy Andryszak, President and Chief Executive
Officer, Interstate Natural Gas Association of America;
Todd A. Snitchler, President and Chief
Executive Officer, Electric Power Supply Association
and;
Kim Smaczniak, Partner, Roselle LLP.
On June 5, 2025, the Subcommittee on Energy met in open
markup session and forwarded H.R. 3638, without amendment, to
the full Committee by a voice vote. On June 25, 2025, the full
Committee on Energy and Commerce met in open markup session and
ordered H.R. 3638, without amendment, favorably reported to the
House by a record vote of 33 yeas and 16 nays.
COMMITTEE VOTES
Clause 3(b) of rule XIII requires the Committee to list the
record votes on the motion to report legislation and amendments
thereto. The following reflects the record votes taken during
the Committee consideration:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
OVERSIGHT FINDINGS AND RECOMMENDATIONS
Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII, the Committee held hearings and made findings that
are reflected in this report.
NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX
EXPENDITURES
Pursuant to clause 3(c)(2) of rule XIII, the Committee
finds that H.R. 3638 would result in no new or increased budget
authority, entitlement authority, or tax expenditures or
revenues.
CONGRESSIONAL BUDGET OFFICE ESTIMATE
Pursuant to clause 3(c)(3) of rule XIII, at the time this
report was filed, the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974 was not available.
FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
Pursuant to clause 3(c)(4) of rule XIII, the general
performance goal or objective of this legislation is to require
the Department of Energy to conduct periodic assessments and
report to Congress on trends, risks, or vulnerabilities that
impact the supply chain for electric generation and
transmission infrastructure and grid components.
DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII, no provision of
H.R. 3638 is known to be duplicative of another Federal
program, including any program that was included in a report to
Congress pursuant to section 21 of Public Law 111-139 or the
most recent Catalog of Federal Domestic Assistance.
RELATED COMMITTEE AND SUBCOMMITTEE HEARINGS
Pursuant to clause 3(c)(6) of rule XIII, the following
related hearings were used to develop or consider H.R. 3638:
On February 5, 2025, the Subcommittee on Energy held a
hearing on H.R. 3638, titled ``Powering America's Future:
Unleashing American Energy.'' The Subcommittee received
testimony from:
Amanda Eversole, Executive Vice President
and Chief Advocacy Officer, American Petroleum
Institute;
Brigham McCown, Senior Fellow and Director,
Initiative on American Energy Security, The Hudson
Institute;
Gary Arnold, Business Manager, Denver
Pipefitters Local 208 and;
Tyler O'Connor, Partner, Crowell & Moring
LLP.
On March 5, 2025, the Subcommittee on Energy held a hearing
on H.R. 3638, titled ``Scaling for Growth: Meeting the Demand
for Reliable, Affordable Electricity.'' The Subcommittee
received testimony from:
Todd Brickhouse, CEO and General Manager,
Basin Electric Power Cooperative;
Asim Haque, Senior Vice President for
Governmental and Member Services, PJM;
Noel W. Black, Senior VP of Regulatory
Affairs, Southern Company and;
Tyler H. Norris, James B. Duke Fellow, Duke
University.
On March 25, 2025, the Subcommittee on Energy held a
hearing on H.R. 3638, titled ``Keeping the Lights On: Examining
the State of Regional Grid Reliability.'' The Subcommittee
received testimony from:
Gordon van Welie, President and Chief
Executive Officer, ISO New England;
Richard J. Dewey, President and Chief
Executive Officer, New York Independent System
Operator;
Manu Asthana, President and Chief Executive
Officer, PJM Interconnection LLC;
Jennifer Curran, Senior Vice President for
Planning and Operations, Midcontinent ISO;
Lanny Nickell, Chief Operating Officer,
Southwest Power Pool;
Elliot Mainzer, President and Chief
Executive Officer, California Independent System
Operator and;
Pablo Vegas, President and Chief Executive
Officer, Electric Reliability Council of Texas, Inc.
On April 9, 2025, the Committee on Energy and Commerce held
a hearing on H.R. 3638, titled ``Converting Energy into
Intelligence: The Future of AI Technology, Human Discovery, and
American Global Competitiveness.'' The Committee received
testimony from:
Eric Schmidt, Chair, Special Competitive
Studies Project;
Manish Bhatia, Executive Vice President of
Global Operations, Micron Technology;
Alexander Wang, Founder and Chief Executive
Officer, Scale AI, and;
David Turk, Distinguished Visiting Fellow,
Center on Global Energy Policy, Columbia University.
On April 30, 2025, the Subcommittee on Energy held a
legislative hearing on H.R. 3638, titled ``Assuring Abundant,
Reliable American Energy to Power Innovation.'' The
Subcommittee received testimony from:
Mike Goff, Acting Undersecretary of Energy,
U.S. Department of Energy;
David L. Morenoff, Acting General Counsel,
Federal Energy Regulatory Commission;
Terry Turpin, Director, Office of Energy
Projects, Federal Energy Regulatory Commission;
Jim Matheson, Chief Executive Officer,
National Rural Electric Cooperative Association;
Amy Andryszak, President and Chief Executive
Officer, Interstate Natural Gas Association of America;
Todd A. Snitchler, President and Chief
Executive Officer, Electric Power Supply Association
and;
Kim Smaczniak, Partner, Roselle LLP.
COMMITTEE COST ESTIMATE
Pursuant to clause 3(d)(1) of rule XIII, the Committee
adopts as its own the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974. At the time this report was
filed, the estimate was not available.
EARMARK, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS
Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the
Committee finds that H.R. 3638 contains no earmarks, limited
tax benefits, or limited tariff benefits.
ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
Section 1. Short title
Section 1 provides that the act be cited as the ``Electric
Supply Chain Act''
Section 2. Assessment and report on the supply chain for the generation
and transmission of electricity
Section 2 requires the Department of Energy to carry out
periodic assessments of trends, risks, and vulnerabilities in
the supply chain for the generation and transmission of
electricity and report to Congress.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
This legislation does not amend any existing Federal
statute.
MINORITY VIEWS
H.R. 3638, the ``Electric Supply Chain Act,'' directs the
Department of Energy (DOE) to conduct an assessment and
periodic reports on the state of the electric supply chain.
While the goal of assessing the electric supply chain is
important, the larger context for H.R. 3638 makes this bill
irresponsible in its current form. The assessments required by
H.R. 3638 would likely be conducted by the Office of
Manufacturing and Energy Supply Chains at DOE. This office was
recently subject to Elon Musk's personnel purges at DOE, which
saw over 3,500 staffers fired or forced to retire.\1\ It is
currently unclear how the office is managing its existing
workload and directives.
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\1\Details Emerge Around Surge of DOE Departure, E&E News (April
21, 2025).
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We are opposed to tasking the Office of Manufacturing and
Energy Supply Chains with additional work without proper
visibility into the office. Secretary of Energy Chris Wright
has refused to provide up to date and accurate personnel
numbers for the Office to Congress and has ignored Committee
Democrats' inquiries into how the Department of Energy is being
run under the Trump Administration.
During the Full Committee markup for H.R. 3638 on June 25,
2025, Committee Democrats offered an amendment to H.R. 3638
that would address personnel issues by asking the Secretary to
certify that existing DOE staff levels can support programs and
projects authorized and appropriated by Congress, as well as
the new directives included in H.R. 3638. This amendment did
not receive support from Committee Republicans and was not
adopted.
While we agree that studying the electric supply chain is
an important end goal, we cannot support an irresponsible bill
that unfairly burdens Department of Energy staff with
additional directives without assessing their existing
capacities. For the reasons stated above, I oppose this
legislation.
Frank Pallone, Jr.,
Ranking Member.
[all]