On Friday, May 1, President Trump issued Executive Order (EO) 13920, “Securing the United States Bulk-Power System.” In EO 13920, the President declared a national emergency under the International Emergency Economic Powers Act (IEEPA) with respect to the threat posed to the US bulk-power system (BPS) by equipment liable to exploitation by “foreign adversaries.”

The EO directs the secretary of energy, in coordination and consultation with other heads of agencies, to impose restrictions on transactions involving bulk power system electric equipment that could raise national security concerns. Furthermore, the EO broadly delegates implementation authority to the secretary of energy, who is required to publish rules and regulations to implement the EO within 150 days, or by September 28.

In addition to introducing restrictions on transactions involving BPS electric equipment, the EO establishes a Task Force on Federal Energy Infrastructure Procurement Policies Related to National Security (the Task Force), charged with coordinating federal government procurement of energy infrastructure and sharing risk information and risk management practices concerning such procurement. The Task Force is to be comprised of the heads of a number of executive branch agencies, and will, among other things, “develop a recommended consistent set of energy infrastructure procurement policies and procedures for agencies…to ensure that national security considerations are fully integrated across the Federal Government.”

Click here to read the full Client Advisory discussing the new EO. For more information about the new EO’s impact, contact a member of Steptoe’s EnergyExport Controls, or International Trade teams.