Declaring a National Emergency To Secure the United States Bulk-Power System
1. Purpose
Executive Order 14421 aims to declare a national emergency to safeguard the United States bulk-power system from vulnerabilities posed by foreign actors, particularly in light of malicious cyber activities.
2. Key Actions And Directives
- Impose transaction prohibitions: The Secretary of Energy is authorized to prohibit any acquisition, importation, transfer, or installation of foreign-produced bulk-power system electric equipment.
- Control existing foreign-manufactured equipment: Conditions may be set for the continued use or maintenance of foreign equipment based on national security threats.
- Revise federal procurement practices: Recommendations are to be developed to amend the Federal Acquisition Regulation (FAR) to prioritize U.S.-manufactured energy infrastructure.
- Report to Congress: The Secretary must submit ongoing and final reports concerning the national emergency to Congress.
3. Important Points
- National Emergency Declaration: The Executive Order establishes a national emergency focused on securing the electricity grid against foreign threats.
- Risks from Covered Foreign Entities: Transactions involving equipment from Covered Foreign Entities are prohibited if they pose risks related to national security and infrastructure.
- Focus on Domestic Production: Strengthening domestic manufacturing of energy infrastructure is a priority to mitigate future risks.
- Definition of Bulk-Power System Equipment: The order specifies critical equipment like transformers and inverters that are essential for electrical reliability.
- No Enforceable Rights Created: The Executive Order does not confer any rights or benefits enforceable by individuals against the United States.
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