Electric System Equipment Imports from Some Countries Prohibited

President Trump issued Aug. 26 an executive order banning imports of bulk-power system electric equipment (see EO text for detailed description) from some foreign countries.

The EO declares a national emergency under the International Emergency Economic Powers Act with respect to such equipment on the grounds that “certain foreign actors 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, and economy.” This threat has grown more acute in recent years, the EO says, because “the rapid growth of advanced manufacturing, data centers, artificial intelligence, and defense production has increased the Nation’s dependence on abundant, reliable electricity and magnified the consequences of a successful attack or supply disruption on the bulk-power system.”

In response, the EO prohibits the importation, acquisition, transfer, or installation of any foreign-produced bulk-power system electric equipment that meets specified risk criteria and is designed, developed, manufactured, or supplied by a “covered foreign entity;” i.e., a foreign country, or any person owned by, controlled by, or subject to the jurisdiction or direction of a government of a foreign country, that (1) is subject to a U.S. arms embargo or sanctions regime under the International Traffic in Arms Regulations or (2) has been determined to be engaged in conduct detrimental to U.S. national security or foreign policy.

These prohibitions also extend to critical components, software, firmware, digital services, maintenance services, or remote access capabilities associated with covered equipment.

The EO further authorizes the imposition of conditions on the continued use, operation, maintenance, servicing, or updating of foreign-manufactured or -operated bulk-power system electric equipment acquired or installed before Aug. 26, including requirements to identify, isolate, monitor, secure, disconnect, replace, or remove such equipment.