,,ii #aagth ,,congress #ast ,session ,s4 #bbfi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #bd1 #bjba,mr4 ,scott of ,florida 7for himself1 ,mr4 ,rubio1 ,mr4 ,marshall1 and ,mr4 ,cotton7 introduced the following bill2 which was read twice and referred to the ,committee on ,energy and ,natural ,resources ,a ,,bill ,to secure the bulk-power system in the ,united ,states4 #a4 ,short title ,this ,act may be cited as the ,protect ,american ,power ,infrastructure ,act4 #b4 ,securing the bulk-power system 7a7 ,definitions ,in this section3 7#a7 ,bulk-power system 7,a7 ,in general ,the term bulk-power system has the meaning given the term in section #bae7;a7 of the ,federal ,power ,act 7#af ,u4,s4,c4 #hbdo7a774 7,b7 ,inclusion ,the term bulk-power system includes transmission lines rated at #fi1jjj volts 7#fi k,v7 or higher4 7#b7 ,covered equipment ,the term covered equipment means items used in bulk-power system substations1 control rooms1 or power generating stations1 including-- 7,a7 7i7 power transformers with a low-side voltage rating of #fi1jjj volts 7#fi k,v7 or higher2 and 7ii7 associated control and protection systems1 such as load tap changers1 cooling systems1 and sudden pressure relays2 7,b7 7i7 generator step-up 7,,gsu7 transformers with a high-side voltage rating of #fi1jjj volts 7#fi k,v7 or higher2 and 7ii7 associated control and protection systems1 such as load tap changers1 cooling systems1 and sudden pressure relays2 7,c7 circuit breakers operating at #fi1jjj volts 7#fi k,v7 or higher2 7,d7 reactive power equipment rated at #fi1jjj volts 7#fi k,v7 or higher2 and 7,e7 microprocessing software and firmware that-- 7i7 is installed in any equipment described in subparagraphs 7,a7 through 7,d72 or 7ii7 is used in the operation of any of the items described in those subparagraphs4 7#c7 ,critical defense facility 7,a7 ,in general ,the term critical defense facility means a facility that-- 7i7 is critical to the defense of the ,united ,states2 and 7ii7 is vulnerable to a disruption of the supply of electric energy provided to that facility by an external provider4 7,b7 ,inclusion ,the term critical defense facility includes a facility designated as a critical defense facility by the ,secretary of ,energy under section #bae;,a7c7 of the ,federal ,power ,act 7#af ,u4,s4,c4 #hbdo-#a7;c774 7#d7 ,critical electric infrastructure ,the term critical electric infrastructure has the meaning given the term in section #bae;,a7a7 of the ,federal ,power ,act 7#af ,u4,s4,c4 #hbdo-#a7;a774 7#e7 ,defense critical electric infrastructure ,the term defense critical electric infrastructure has the meaning given the term in section #bae;,a7a7 of the ,federal ,power ,act 7#af ,u4,s4,c4 #hbdo-#a7;a774 7#f7 ,entity ,the term entity means a partnership1 association1 trust1 joint venture1 corporation1 group1 subgroup1 or other organization4 7#g7 ,foreign adversary ,the term foreign adversary means any foreign government or foreign nongovernment person engaged in a longterm pattern or serious instances of conduct significantly adverse to-- 7,a7 the national security of-- 7i7 the ,united ,states2 or 7ii7 allies of the ,united ,states2 or 7,b7 the security and safety of ,united ,states persons4 7#h7 ,person ,the term person means an individual or entity4 7#i7 ,procurement ,the term procurement means the process of acquiring1 through purchase1 by contract and through the use of appropriated funds1 supplies or services1 including installation services1 by and for the use of the ,federal ,government4 7#aj7 ,transaction ,the term transaction means the acquisition1 importation1 transfer1 or installation of any bulk-power system electric equipment by any person1 or with respect to any property1 subject to the jurisdiction of the ,united ,states4 7#aa7 ,united ,states person ,the term ,united ,states person means-- 7,a7 an individual who is-- 7i7 a citizen of the ,united ,states2 or 7ii7 an alien lawfully admitted for permanent residence in the ,united ,states2 7,b7 an entity organized under the laws of the ,united ,states or any jurisdiction within the ,united ,states1 including a foreign branch of such an entity2 and 7,c7 any person in the ,united ,states4 7b7 ,prohibition 7#a7 ,in general ,except as otherwise provided in this subsection1 no person that is the owner or operator of defense critical electric infrastructure may engage in any transaction relating to that defense critical electric infrastructure that involves any covered equipment in which a foreign adversary has an ownership or any other interest1 including through an interest in a contract for the provision of the covered equipment1 over which a foreign adversary has control1 or with respect to which a foreign adversary exercises influence1 including any transaction that-- 7,a7 is initiated after the date of enactment of this ,act2 and 7,b7 the ,secretary of ,energy1 in coordination with the ,director of the ,office of ,management and ,budget and in consultation with the ,secretary of ,defense1 the ,secretary of ,homeland ,security1 the ,director of ,national ,intelligence1 and the heads of other appropriate ,federal agencies1 as determined by the ,secretary of ,energy1 determines-- 7i7 involves covered equipment designed1 developed1 manufactured1 or supplied by persons owned by1 controlled by1 or subject to the jurisdiction or direction of a foreign adversary2 and 7ii7 poses an undue risk of catastrophic effects on the security or resiliency of defense critical electric infrastructure in the ,united ,states4 7#b7 ,mitigation measures 7,a7 ,in general ,the ,secretary of ,energy1 in consultation with the heads of other ,federal agencies1 as appropriate1 may-- 7i7 in accordance with subparagraph 7,b71 approve a transaction or class of transactions prohibited under paragraph 7#a72 and 7ii7 design or negotiate measures to mitigate any concerns identified in making determinations under paragraph 7#a77;,b7 with respect to that transaction or class of transactions4 7,b7 ,precondition to approval of otherwise prohibited transaction ,the ,secretary of ,energy shall implement the measures described in subparagraph 7,a77ii7 before approving a transaction or class of transactions that would otherwise be prohibited under paragraph 7#a74 7#c7 ,application 7,a7 ,in general ,the prohibition described in paragraph 7#a7 shall apply to a transaction described in that paragraph regardless of whether-- 7i7 a contract has been entered into with respect to that transaction before the date of enactment of this ,act2 or 7ii7 a license or permit has been issued or granted with respect to that transaction before the date of enactment of this ,act4 7,b7 ,contrary law ,the prohibition described in paragraph 7#a7 shall apply to each transaction described in that paragraph only to the extent not otherwise provided by-- 7i7 another statute2 or 7ii7 a regulation1 order1 directive1 or license issued pursuant to this section4 7#d7 ,prequalification 7,a7 ,in general ,the ,secretary of ,energy1 in consultation with the heads of other ,federal agencies1 as appropriate1 may-- 7i7 establish and publish criteria for recognizing particular covered equipment and particular vendors in the market for covered equipment as prequalified for future transactions2 and 7ii7 apply those criteria to establish and publish1 and update1 as necessary1 a list of prequalified equipment and vendors4 7,b7 ,savings provision ,nothing in this paragraph limits the authority of the ,secretary of ,energy under this subsection to prohibit or otherwise regulate any transaction involving prequalified equipment or vendors4 7c7 ,implementation 7#a7 ,implementation by the ,secretary of ,energy ,the ,secretary of ,energy shall take such actions as the ,secretary determines to be necessary to implement this section1 including-- 7,a7 directing the timing and manner of the cessation of pending and future transactions prohibited under subsection 7b77#a72 7,b7 adopting appropriate rules and regulations2 and 7,c7 exercising any applicable power granted to the ,president by the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq47 and delegated to the ,secretary4 7#b7 ,required rulemaking 7,a7 ,in general ,not later than #aej days after the date of enactment of this ,act1 the ,secretary of ,energy1 in consultation with the ,secretary of ,defense1 the ,secretary of ,homeland ,security1 the ,director of ,national ,intelligence1 and the heads of other appropriate ,federal agencies1 as determined by the ,secretary of ,energy1 shall issue rules or regulations to implement this section4 7,b7 ,authority ,a rule or regulation issued under subparagraph 7,a7 may-- 7i7 determine that particular countries or persons are foreign adversaries exclusively for the purposes of this section2 7ii7 identify persons owned by1 controlled by1 or subject to the jurisdiction or direction of1 foreign adversaries exclusively for the purposes of this section2 7iii7 identify particular equipment or countries with respect to which transactions involving covered equipment warrant particular scrutiny under this section2 and 7iv7 identify a mechanism and relevant factors for the negotiation of agreements to mitigate concerns identified in making determinations under subsection 7b77#a77;,b74 7#c7 ,identification of certain equipment ,as soon as practicable after the date of enactment of this ,act1 the ,secretary of ,energy1 in consultation with the ,secretary of ,defense1 the ,secretary of the ,interior1 the ,secretary of ,homeland ,security1 the ,director of ,national ,intelligence1 the ,board of ,directors of the ,tennessee ,valley ,authority1 and the heads of other appropriate ,federal agencies1 as determined by the ,secretary of ,energy1 shall-- 7,a7 identify existing covered equipment that-- 7i7 is designed1 developed1 manufactured1 or supplied by persons owned by1 controlled by1 or subject to the jurisdiction or direction of a foreign adversary2 and 7ii7 poses an undue risk of catastrophic effects on the security or resiliency of critical electric infrastructure in the ,united ,states2 and 7,b7 develop recommendations on ways to identify1 isolate1 monitor1 or replace any covered equipment identified under subparagraph 7,a7 as soon as practicable4 7#d7 ,coordination and information sharing ,the ,secretary of ,energy shall work with the ,secretary of ,defense1 the ,secretary of the ,interior1 the ,secretary of ,homeland ,security1 the ,director of ,national ,intelligence1 the ,board of ,directors of the ,tennessee ,valley ,authority1 and the heads of other appropriate ,federal agencies1 as determined by the ,secretary of ,energy1 to protect critical defense facilities from national security threats through-- 7,a7 the coordination of the procurement of energy infrastructure by the ,federal ,government2 and 7,b7 the sharing of risk information and risk management practices to inform that procurement4 7#e7 ,requirement ,this section shall be implemented-- 7,a7 in a manner that is consistent with all other applicable laws2 and 7,b7 subject to the availability of appropriations4 7d7 ,reports to ,congress ,the ,secretary of ,energy shall submit to ,congress periodic reports describing any progress made in implementing1 or otherwise relating to the implementation of1 this section4