[Federal Register Volume 85, Number 86 (Monday, May 4, 2020)]
[Presidential Documents]
[Pages 26595-26599]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-09695]



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Vol. 85

Monday,

No. 86

May 4, 2020

Part IV





The President





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Executive Order 13920--Securing the United States Bulk-Power System
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  Federal Register / Vol. 85 , No. 86 / Monday, May 4, 2020 / 
Presidential Documents  

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 Title 3--
 The President

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                Executive Order 13920 of May 1, 2020

                
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:

[[Page 26596]]

(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,

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                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.

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                    (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. 1641(c)) and 
                section 204(c) of IEEPA (50 U.S.C. 1703(c)).

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                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.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    May 1, 2020.

[FR Doc. 2020-09695
Filed 5-1-20; 2:30 pm]
Billing code 3295-F0-P