EO Declares National Emergency to Secure US Bulk-Power Grid
A new executive order restricts transactions involving foreign-produced grid equipment, citing national security, and directs the Department of Energy to develop rules for replacing vulnerable components.
Citing threats from foreign adversaries, a new executive order declares a national emergency to protect the U.S. bulk-power system. The order prohibits or restricts transactions involving grid equipment designed, developed, or supplied by entities linked to foreign adversaries that pose a national security risk. This action grants the Department of Energy (DOE) significant authority to identify and mitigate vulnerabilities within the nation's energy infrastructure. For clients in the energy, manufacturing, and technology sectors, the order creates immediate uncertainty for projects relying on international supply chains and could halt pending acquisitions of foreign-made components. Government contractors must also prepare for significant shifts in federal procurement, as the order mandates revisions to the Federal Acquisition Regulation (FAR) to prioritize U.S.-manufactured equipment. Key next steps include the DOE's publication of implementing rules within 120 days and the FAR Council's subsequent consideration of proposed amendments.