President Trump Issues Executive Order Prohibiting Certain Transactions in the Bulk-Power System Supply Chain

The Order prohibits the purchase or installation of certain bulk-power system electric equipment from foreign adversaries and those subject to their jurisdiction or direction.

Key Points:

..On May 1, 2020, President Donald J. Trump issued an Executive Order prohibiting certain types of transactions regarding bulk-power system electric equipment designed, developed, manufactured, or supplied, by persons owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary. The focus of the Executive Order is on electric equipment supplied from a foreign adversary or an entity subject to such foreign adversary’s jurisdiction.

..Not all transactions for equipment supplied from a foreign adversary or an entity subject to such adversary’s jurisdiction are prohibited. The prohibition applies only to those transactions that pose: (i) an undue risk of sabotage to or subversion of the design, integrity, manufacturing, production, distribution, installation, operation, or maintenance of the bulk-power system in the United States; (ii) an undue risk of catastrophic effects on the security or resiliency of United States critical infrastructure or the economy of the United States; or (iii) an unacceptable risk to the national security of the United States or the security and safety of United States persons.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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