Trump Issues Executive Order on Electric Grid Security
President Donald Trump has enacted Executive Order (EO) 14420, which establishes a national emergency aimed at limiting the import and installation of foreign-made electric grid components that are considered a risk to national security.
In a statement regarding the EO, titled “Declaring a National Emergency to Secure the United States Bulk-Power System,” Trump emphasized that this move aligns with his primary responsibility as president: to safeguard the nation’s security, foreign relations, and economic interests.
The order highlights that the foreign supply of specific power grid equipment presents “an unusual and extraordinary threat” to the United States. It explicitly bans the acquisition, importation, transfer, or installation of foreign grid components that could endanger U.S. security or the electricity supply.
Additionally, the order addresses transactions involving “any critical component, software, firmware, digital service, maintenance service, or remote-access capability” related to foreign-produced bulk-power system machinery. It raises concerns about potential risks of sabotage, subversion, unauthorized access, and disruptions that could jeopardize the design, integrity, and operation of the U.S. bulk-power system.
Trump has authorized Secretary of Energy Chris Wright to collaborate with the director of the Office of Management and Budget (OMB) to identify which foreign products pose unacceptable risks to national security. Wright has the authority to develop restrictions, licensing procedures, and mitigation strategies.
Once the secretary identifies specific threats, the government, under this executive order, can restrict, condition, monitor, replace, isolate, or even remove foreign-made equipment currently in use. This could affect various devices, ranging from generators and turbines to transformers and energy storage batteries.
Interestingly, the order does not specify particular threats or target any specific country. However, it’s notable that China is a leading manufacturer of many items that could be impacted. The International Energy Agency reports that China dominates the global production capacity for lithium-ion batteries and solar energy components.
In 2020, Trump had signed a comparable EO during his first term, which stated, “The bulk-power system is a target of those seeking to commit malicious acts against the United States and its people, including malicious cyber activities, because a successful attack on our bulk-power system would present significant risks to our economy, human health and safety, and would render the United States less capable of acting in defense of itself and its allies.”
