DOE Seeks Input to Aid Implementation of Ban on Imports of Electric System Equipment

The Department of Energy is accepting input through Oct. 9 to inform the actions it will take to implement an executive order banning imports of bulk-power system electric equipment from some foreign countries.

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 authorizes the DOE to (1) impose conditions on the continued use, operation, maintenance, servicing, or updating of foreign-manufactured or -operated bulk-power system electric equipment, (2) make measures to mitigate concerns a precondition to approval of a transaction or class of transactions, (3) consider regulations, orders, directives, or licenses that authorize conduct otherwise prohibited, and (4) establish criteria and procedures for recognizing particular equipment and vendors as prequalified for future transactions.

The EO also directs the DOE to publish implementing regulations within 120 days; identify bulk-power system electric equipment associated with covered foreign entities that presents the risks described in the EO; and develop recommendations on ways to identify, inventory, isolate, monitor, or replace such items.

To aid in these efforts the DOE is inviting comments on the following issues.

– the scope of covered equipment and transactions

– risks associated with covered foreign entities and foreign-produced bulk-power system electric equipment

– supply chain, software, firmware, digital service, maintenance service, and remote-access practices

– existing equipment and potential mitigation

– licensing and prequalification

– domestic manufacturing and secure replacement capacity

– federal procurement

– potential economic, reliability, safety, and small-entity impacts