US Executive Order Restricts Foreign Bulk-Power System Equipment

A new executive order declares a national emergency to address security threats to the U.S. bulk-power system from foreign adversaries. The order prohibits, subject to future regulation, the acquisition, importation, or installation of specified electric-grid equipment manufactured or supplied by persons controlled by or subject to the jurisdiction of a "Covered Foreign Entity." While not self-executing, it directs the Department of Energy to publish implementing rules within 120 days. This action signals a major U.S. policy shift to secure critical infrastructure supply chains. Energy companies, equipment suppliers, and data center operators must now assess their reliance on foreign-produced components, which could range from large transformers to industrial control systems. The order also directs federal procurement agencies to prioritize U.S.-manufactured energy infrastructure. Counsel should monitor the upcoming DoE rulemaking, which will establish licensing and mitigation procedures, and could compel the replacement of currently installed equipment.