Protect American Power Infrastructure Act
This bill prohibits certain transactions that involve using bulk-power equipment to provide power for defense critical electric infrastructure in the United States if a foreign adversary owns or exercises influence over the equipment, including transactions that (1) involve equipment designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the direction of a foreign adversary; and (2) pose an undue risk of catastrophic effects on the security or resiliency of such infrastructure. However, the Department of Energy may approve transactions if it designs or negotiates measures to mitigate such risks.
To secure the bulk-power system in the United States.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protect American Power 
Infrastructure Act''.

SEC. 2. SECURING THE BULK-POWER SYSTEM.

    (a) Definitions.--In this section:
            (1) Bulk-power system.--
                    (A) In general.--The term ``bulk-power system'' has 
                the meaning given the term in section 215(a) of the 
                Federal Power Act (16 U.S.C. 824o(a)).
                    (B) Inclusion.--The term ``bulk-power system'' 
                includes transmission lines rated at 69,000 volts (69 
                kV) or higher.
            (2) Covered equipment.--The term ``covered equipment'' 
        means items used in bulk-power system substations, control 
        rooms, or power generating stations, including--
                    (A)(i) power transformers with a low-side voltage 
                rating of 69,000 volts (69 kV) or higher; and
                    (ii) associated control and protection systems, 
                such as load tap changers, cooling systems, and sudden 
                pressure relays;
                    (B)(i) generator step-up (GSU) transformers with a 
                high-side voltage rating of 69,000 volts (69 kV) or 
                higher; and
                    (ii) associated control and protection systems, 
                such as load tap changers, cooling systems, and sudden 
                pressure relays;
                    (C) circuit breakers operating at 69,000 volts (69 
                kV) or higher;
                    (D) reactive power equipment rated at 69,000 volts 
                (69 kV) or higher; and
                    (E) microprocessing software and firmware that--
                            (i) is installed in any equipment described 
                        in subparagraphs (A) through (D); or
                            (ii) is used in the operation of any of the 
                        items described in those subparagraphs.
            (3) Critical defense facility.--
                    (A) In general.--The term ``critical defense 
                facility'' means a facility that--
                            (i) is critical to the defense of the 
                        United States; and
                            (ii) is vulnerable to a disruption of the 
                        supply of electric energy provided to that 
                        facility by an external provider.
                    (B) Inclusion.--The term ``critical defense 
                facility'' includes a facility designated as a critical 
                defense facility by the Secretary of Energy under 
                section 215A(c) of the Federal Power Act (16 U.S.C. 
                824o-1(c)).
            (4) Critical electric infrastructure.--The term ``critical 
        electric infrastructure'' has the meaning given the term in 
        section 215A(a) of the Federal Power Act (16 U.S.C. 824o-1(a)).
            (5) Defense critical electric infrastructure.--The term 
        ``defense critical electric infrastructure'' has the meaning 
        given the term in section 215A(a) of the Federal Power Act (16 
        U.S.C. 824o-1(a)).
            (6) Entity.--The term ``entity'' means a partnership, 
        association, trust, joint venture, corporation, group, 
        subgroup, or other organization.
            (7) Foreign adversary.--The term ``foreign adversary'' 
        means any foreign government or foreign nongovernment person 
        engaged in a long-term pattern or serious instances of conduct 
        significantly adverse to--
                    (A) the national security of--
                            (i) the United States; or
                            (ii) allies of the United States; or
                    (B) the security and safety of United States 
                persons.
            (8) Person.--The term ``person'' means an individual or 
        entity.
            (9) Procurement.--The term ``procurement'' means the 
        process of acquiring, through purchase, by contract and through 
        the use of appropriated funds, supplies or services, including 
        installation services, by and for the use of the Federal 
        Government.
            (10) Transaction.--The term ``transaction'' means the 
        acquisition, importation, transfer, or installation of any 
        bulk-power system electric equipment by any person, or with 
        respect to any property, subject to the jurisdiction of the 
        United States.
            (11) United states person.--The term ``United States 
        person'' means--
                    (A) an individual who is--
                            (i) a citizen of the United States; or
                            (ii) an alien lawfully admitted for 
                        permanent residence in the United States;
                    (B) an entity organized under the laws of the 
                United States or any jurisdiction within the United 
                States, including a foreign branch of such an entity; 
                and
                    (C) any person in the United States.
    (b) Prohibition.--
            (1) In general.--Except as otherwise provided in this 
        subsection, 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 interest, including through an 
        interest in a contract for the provision of the covered 
        equipment, over which a foreign adversary has control, or with 
        respect to which a foreign adversary exercises influence, 
        including any transaction that--
                    (A) is initiated after the date of enactment of 
                this Act; and
                    (B) the Secretary of Energy, in coordination with 
                the Director of the Office of Management and Budget and 
                in consultation with the Secretary of Defense, the 
                Secretary of Homeland Security, the Director of 
                National Intelligence, and the heads of other 
                appropriate Federal agencies, as determined by the 
                Secretary of Energy, determines--
                            (i) involves covered equipment designed, 
                        developed, manufactured, or supplied by persons 
                        owned by, controlled by, or subject to the 
                        jurisdiction or direction of a foreign 
                        adversary; and
                            (ii) poses an undue risk of catastrophic 
                        effects on the security or resiliency of 
                        defense critical electric infrastructure in the 
                        United States.
            (2) Mitigation measures.--
                    (A) In general.--The Secretary of Energy, in 
                consultation with the heads of other Federal agencies, 
                as appropriate, may--
                            (i) in accordance with subparagraph (B), 
                        approve a transaction or class of transactions 
                        prohibited under paragraph (1); and
                            (ii) design or negotiate measures to 
                        mitigate any concerns identified in making 
                        determinations under paragraph (1)(B) with 
                        respect to that transaction or class of 
                        transactions.
                    (B) Precondition to approval of otherwise 
                prohibited transaction.--The Secretary of Energy shall 
                implement the measures described in subparagraph 
                (A)(ii) before approving a transaction or class of 
                transactions that would otherwise be prohibited under 
                paragraph (1).
            (3) Application.--
                    (A) In general.--The prohibition described in 
                paragraph (1) shall apply to a transaction described in 
                that paragraph regardless of whether--
                            (i) a contract has been entered into with 
                        respect to that transaction before the date of 
                        enactment of this Act; or
                            (ii) a license or permit has been issued or 
                        granted with respect to that transaction before 
                        the date of enactment of this Act.
                    (B) Contrary law.--The prohibition described in 
                paragraph (1) shall apply to each transaction described 
                in that paragraph only to the extent not otherwise 
                provided by--
                            (i) another statute; or
                            (ii) a regulation, order, directive, or 
                        license issued pursuant to this section.
            (4) Prequalification.--
                    (A) In general.--The Secretary of Energy, in 
                consultation with the heads of other Federal agencies, 
                as appropriate, may--
                            (i) establish and publish criteria for 
                        recognizing particular covered equipment and 
                        particular vendors in the market for covered 
                        equipment as prequalified for future 
                        transactions; and
                            (ii) apply those criteria to establish and 
                        publish, and update, as necessary, a list of 
                        prequalified equipment and vendors.
                    (B) 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 
                vendors.
    (c) Implementation.--
            (1) Implementation by the secretary of energy.--The 
        Secretary of Energy shall take such actions as the Secretary 
        determines to be necessary to implement this section, 
        including--
                    (A) directing the timing and manner of the 
                cessation of pending and future transactions prohibited 
                under subsection (b)(1);
                    (B) adopting appropriate rules and regulations; and
                    (C) exercising any applicable power granted to the 
                President by the International Emergency Economic 
                Powers Act (50 U.S.C. 1701 et seq.) and delegated to 
                the Secretary.
            (2) Required rulemaking.--
                    (A) In general.--Not later than 150 days after the 
                date of enactment of this Act, the Secretary of Energy, 
                in consultation with the Secretary of Defense, the 
                Secretary of Homeland Security, the Director of 
                National Intelligence, and the heads of other 
                appropriate Federal agencies, as determined by the 
                Secretary of Energy, shall issue rules or regulations 
                to implement this section.
                    (B) Authority.--A rule or regulation issued under 
                subparagraph (A) may--
                            (i) determine that particular countries or 
                        persons are foreign adversaries exclusively for 
                        the purposes of this section;
                            (ii) identify persons owned by, controlled 
                        by, or subject to the jurisdiction or direction 
                        of, foreign adversaries exclusively for the 
                        purposes of this section;
                            (iii) identify particular equipment or 
                        countries with respect to which transactions 
                        involving covered equipment warrant particular 
                        scrutiny under this section; and
                            (iv) identify a mechanism and relevant 
                        factors for the negotiation of agreements to 
                        mitigate concerns identified in making 
                        determinations under subsection (b)(1)(B).
            (3) Identification of certain equipment.--As soon as 
        practicable after the date of enactment of this Act, the 
        Secretary of Energy, in consultation with the Secretary of 
        Defense, the Secretary of the Interior, the Secretary of 
        Homeland Security, the Director of National Intelligence, the 
        Board of Directors of the Tennessee Valley Authority, and the 
        heads of other appropriate Federal agencies, as determined by 
        the Secretary of Energy, shall--
                    (A) identify existing covered equipment that--
                            (i) is designed, developed, manufactured, 
                        or supplied by persons owned by, controlled by, 
                        or subject to the jurisdiction or direction of 
                        a foreign adversary; and
                            (ii) poses an undue risk of catastrophic 
                        effects on the security or resiliency of 
                        critical electric infrastructure in the United 
                        States; and
                    (B) develop recommendations on ways to identify, 
                isolate, monitor, or replace any covered equipment 
                identified under subparagraph (A) as soon as 
                practicable.
            (4) Coordination and information sharing.--The Secretary of 
        Energy shall work with the Secretary of Defense, the Secretary 
        of the Interior, the Secretary of Homeland Security, the 
        Director of National Intelligence, the Board of Directors of 
        the Tennessee Valley Authority, and the heads of other 
        appropriate Federal agencies, as determined by the Secretary of 
        Energy, to protect critical defense facilities from national 
        security threats through--
                    (A) the coordination of the procurement of energy 
                infrastructure by the Federal Government; and
                    (B) the sharing of risk information and risk 
                management practices to inform that procurement.
            (5) Requirement.--This section shall be implemented--
                    (A) in a manner that is consistent with all other 
                applicable laws; and
                    (B) subject to the availability of appropriations.
    (d) Reports to Congress.--The Secretary of Energy shall submit to 
Congress periodic reports describing any progress made in implementing, 
or otherwise relating to the implementation of, this section.
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Protect American Power Infrastructure Act
A bill to secure the bulk-power system in the United States.
Protect American Power Infrastructure Act
Sen. Scott, Rick