,,ii #aaith ,,congress #ast ,session ,s4 #beic ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #ca1 #bjbe ,mr4 ,scott of ,florida introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to direct the ,secretary of ,commerce to submit a report assessing vulnerabilities to the electric grid in the ,united ,states from certain ,internet-connected devices and applications1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,preventing ,remote ,operations by ,threatening ,entities on ,critical ,technology for the ,grid ,act or the ,,protect the ,grid ,act4 #b4 ,findings2 ,purposes 7a7 ,findings ,congress finds that-- 7#a7 the rapid proliferation of highwattage ,io,t devices1 such as electric vehicle chargers1 clothes dryers1 smart air conditioners1 water heaters1 ovens1 and similar appliances1 has dramatically increased the number of connected devices in households in the ,united ,states2 7#b7 7,a7 smart appliance applications and software platforms increasingly serve as remote control interfaces2 and 7,b7 when those applications and software platforms originate from companies operating under the jurisdiction or direction of foreign adversaries they offer a pathway for large-scale1 coordinated manipulation of power demand1 threatening grid stability2 7#c7 7,a7 in certain foreign adversary jurisdictions1 particularly the ,people's ,republic of ,china1 private companies are subject to formal political oversight through mechanisms such as1 in the case of the ,people's ,republic of ,china1 embedded ,chinese ,communist ,party committees and executive-level ,chinese ,communist ,party leadership2 and 7,b7 those arrangements blur the lines between commercial activity and state-directed strategic interests2 7#d7 further elevating the risk to the ,united ,states electric grid is the #bjag ,cybersecurity ,law of the ,people's ,republic of ,china 7commonly referred to as the ,chinese ,cybersecurity ,law71 which mandates that ,chinese companies store customer data domestically and grant ,chinese state authorities broad access to those data2 7#e7 the legal and political structures described in paragraphs 7#c7 and 7#d7 increase the likelihood that connected home appliances could be leveraged by foreign adversaries to target critical infrastructure in the event of a conflict with the ,united ,states2 7#f7 companies controlled by foreign adversaries-- 7,a7 are actively pursuing rapid deployment of high-wattage ,io,t devices that could be used to attack the electric grid in the ,united ,states2 and 7,b7 control more than #be percent of the major appliance industry in the ,united ,states1 which provides an established platform for quickly deploying those high-wattage ,io,t devices2 7#g7 through smart applications1 companies controlled by foreign adversaries-- 7,a7 are actively collecting detailed consumer data on millions of people in the ,united ,states2 and 7,b7 have the ability to directly manipulate the demand of high-wattage devices on the electric grid2 7#h7 as a result1 foreign adversary-controlled applications for highwattage ,io,t devices create significant risk of coordinated1 deliberate1 demand-manipulation attacks on the electric grid in the ,united ,states2 7#i7 several academic studies from researchers at ,princeton ,university1 the ,georgia ,institute of ,technology1 and the ,university of ,california1 ,santa ,cruz1 point to significant risks of manipulation of demand via ,io,t 7commonly referred to as ,ma,d,io,t7 attacks to manipulate power demand on the electric grid that could result in large-scale blackouts and potential damage to the electric grid2 7#aj7 it is therefore critical to protect energy infrastructure in the ,united ,states by ensuring that smart applications embedded in home appliances are secure and cannot serve as an entry point for foreign adversaries2 and 7#aa7 failing to address the vulnerabilities presented by those smart applications could lead to grid instability1 frequency imbalances1 cascading system failures1 and1 ultimately1 catastrophic disruptions that jeopardize both public safety and the broader economy of the ,united ,states4 7b7 ,purposes ,the purposes of this ,act are-- 7#a7 to harmonize and reinforce existing national security initiatives aimed at securing the domestic information and communications technology and services 7commonly referred to as ,,icts7 supply chain against manipulation of demand1 especially by the ,people's ,republic of ,china2 and 7#b7 to direct the ,secretary of ,commerce1 in consultation with other relevant ,federal officials1 to submit to ,congress a report containing findings and recommendations to ensure that network-connected home appliances in households in the ,united ,states do not serve as a conduit for activities by foreign adversaries or jeopardize the stability of the electric grid in the ,united ,states4 #c4 ,definitions ,in this ,act3 7#a7 ,consumer product ,the term consumer product has the meaning given the term in section #c7;a7 of the ,consumer ,product ,safety ,act 7#ae ,u4,s4,c4 #bjeb7;a774 7#b7 ,covered entity ,the term covered entity means an entity that-- 7,a7 is subject to the jurisdiction of a foreign adversary2 7,b7 is directly or indirectly operating on behalf of a foreign adversary2 or 7,c7 is owned by1 directly or indirectly controlled by1 or otherwise subject to the direction or influence of1 a foreign adversary4 7#c7 ,critical infrastructure ,the term critical infrastructure has the meaning given the term in subsection 7e7 of the ,critical ,infrastructures ,protection ,act of #bjja 7#db ,u4,s4,c4 #eaie;c74 7#d7 ,foreign adversary ,the term foreign adversary means-- 7,a7 any covered nation 7as defined in section #dhgb7;f7 of title #aj1 ,united ,states ,code72 and 7,b7 the ,bolivarian ,republic of ,venezuela while ,nicols ,maduro ,moros is in power4 7#e7 ,foreign adversary-controlled application ,the term foreign adversary-controlled application means a website1 desktop application1 mobile application1 or augmented or immersive technology application that is operated1 directly or indirectly 7including through a parent1 subsidiary1 or affiliate 7as those terms are defined in section #bcj4dje of title #ag1 ,code of ,federal ,regulations 7as in effect on the date of enactment of this ,act7771 by a covered entity4 7#f7 ,high-wattage ,io,t device ,the term high-wattage ,io,t device means any ,internetconnected appliance or device that is capable of consuming or controlling electrical power at a level exceeding #ejj watts1 regardless of whether the device is used or designed for use in residential or commercial applications4 7#g7 ,io,t ,the term ,io,t means ,internet of ,things4 7#h7 ,relevant ,federal official ,the term relevant ,federal official means-- 7,a7 any ,federal official described in section #a7;a7 of ,executive ,order #achgc 7#hd ,fed4 ,reg4 #bbfhi2 relating to securing the information and communications technology and services supply chain7 7as in effect on the date of enactment of this ,act7 7or a designee of the applicable ,federal official72 and 7,b7 the head 7or a designee of the head7 of any other ,federal department or agency that1 in the determination of the ,secretary of ,commerce1 is relevant to the purposes of this ,act4 #d4 ,report on national security risks posed by foreign adversary-controlled applications with the capability of controlling high-wattage ,io,t devices 7a7 ,in general ,not later than #bgj days after the date of enactment of this ,act1 the ,secretary of ,commerce1 in coordination with other relevant ,federal officials1 shall submit to the ,committee on ,commerce1 ,science1 and ,transportation of the ,senate and the ,committee on ,energy and ,commerce of the ,house of ,representatives a report assessing the national security risks associated with foreign adversary-controlled applications with the ability to attack or undermine critical infrastructure in the ,united ,states4 7b7 ,considerations ,in preparing the report under subsection 7a71 the ,secretary of ,commerce shall consider1 at a minimum-- 7#a7 the extent of deployment of high-wattage ,io,t devices across the ,united ,states2 7#b7 risks relating to foreign adversary-controlled applications1 especially those incorporated into consumer products that could be used to attack or otherwise destabilize the electric grid2 7#c7 potential impacts of those risks and any other relevant vulnerabilities on national security1 including the risks of frequency imbalances1 cascading failures1 and other disruptions to critical infrastructure2 and 7#d7 public comments and input from industry experts1 domestic producers1 importers1 consumer groups1 and other stakeholders regarding the security of1 and the extent of foreign influence over1 foreign adversary-controlled applications and high-wattage ,io,t devices4 7c7 ,recommendations ,the report submitted under subsection 7a7 shall include recommendations for mitigation measures to address any identified national security risks1 which may include-- 7#a7 an assessment of how ,executive ,order #achgc 7#hd ,fed4 ,reg4 #bbfhi2 relating to securing the information and communications technology and services supply chain7 7as in effect on the date of enactment of this ,act7 may be applied to ,io,t devices1 as such devices apply to the electric grid1 to include restrictions or conditions on transactions directly involving foreign adversary-controlled applications in high-wattage ,io,t devices2 7#b7 specifically restricting the procurement by the ,federal ,government of consumer products with a foreign adversary-controlled application2 7#c7 certification or labeling requirements for high-wattage ,io,t devices2 and 7#d7 any other proposal1 as determined necessary by the ,secretary of ,commerce1 in consultation with other relevant ,federal officials4 #e4 ,codification of ,executive ,order #achgc 7a7 ,in general ,the provisions of ,executive ,order #achgc 7#hd ,fed4 ,reg4 #bbfhi2 relating to securing the information and communications technology and services supply chain7 7as in effect on the date of enactment of this ,act7 are enacted into law4 7b7 ,publication ,in publishing this ,act in slip form and in the ,united ,states ,statutes at ,large pursuant to section #aab of title #a1 ,united ,states ,code1 the ,archivist of the ,united ,states shall include after the date of approval at the end an appendix setting forth the text of the ,executive order referred to in subsection 7a7 7as in effect on the date of enactment of this ,act74