Trump EO Authorizes Curbs on Foreign Power-Grid Gear
The Department of Energy can now review, restrict, and even require replacement of foreign-sourced equipment in the US bulk-power system, with a near-term focus on Chinese suppliers.
Under a new executive order declaring a national emergency, the U.S. Secretary of Energy now has broad authority to address national security risks in the nation’s bulk-power system. The order allows the Department of Energy (DOE), acting under the International Emergency Economic Powers Act (IEEPA), to review and prohibit transactions involving electric-grid equipment sourced from "Covered Foreign Entities," a list including China, Belarus, Iran, and Venezuela. This authority extends to a wide range of hardware, such as transformers, battery storage systems, and industrial control systems, plus related software and firmware. Sophisticated counsel should note the order’s reach is not just prospective; the DOE can impose mitigating measures or mandate the removal of equipment already in service, creating significant risk for existing infrastructure. The action is seen as part of a broader U.S. effort to reduce dependency on Chinese technology in critical sectors. The DOE is required to publish implementing regulations within 120 days, and companies with potential exposure should begin auditing their supply chains and monitoring the forthcoming rulemaking.