A new Executive Order (EO) is putting bulk-power system electric equipment produced by foreign entities in the spotlight, signaling major changes ahead for utilities, developers, and other energy-intensive businesses.
On August 26, 2026, President Trump issued Executive Order 14420, the full text of which can be found HERE, declaring a national emergency to address security risks associated with foreign-produced equipment used in the United States bulk-power system. The Administration has stated that the EO is designed to protect the security and integrity of critical electric infrastructure in the United States by restricting certain transactions involving foreign-produced bulk-power system electric equipment, including associated software and firmware.
Function of the Executive Order
Executive Order 14420 prohibits the acquisition, importation, and installation of foreign-produced bulk-power system electric equipment when the transaction involves covered foreign interests and presents an undue risk to U.S. critical infrastructure, the economy, or national security. The order applies to transactions which were initiated on or after August 26, 2026. Notably, the EO defines bulk-power system more broadly than NERC, as it includes transmission lines rated at 69 kV or higher, but excludes facilities used for local distribution of electric energy.
At a minimum, the EO will restrict the use of foreign-produced bulk-power system electric equipment from countries subject to a United States arms embargo or sanctions regime. However, the EO also empowers the Department of Energy to identify additional entities and equipment that will be subject to the limitations implemented by the Executive Order, as well as empowers the Secretary of Energy to impose conditions on equipment already installed before the order took effect.
Who the Executive Order Impacts
The Executive Order may affect utilities, transmission developers, renewable energy projects, data center operators, and industrial customers involved in electric infrastructure projects as their ability to import foreign-produced bulk-power system electric equipment may be reduced or eliminated entirely. In addition, these industries may be required to replace existing and operational foreign electric equipment if the Department of Energy determines that replacement is necessary.
What Steps Should Be Taken Now
Utilities and other organizations potentially impacted by Executive Order 14420 should act proactively by reviewing pending and planned transactions for bulk-power system equipment initiated on or after August 26, 2026. This review should include evaluating potential supplier ownership as well as the manufacturing country of associated electric equipment, software, and remote access capabilities. Utilities and other organizations should also monitor for the forthcoming Department of Energy rules, which are required to be issued no later than December 24, 2026, and be prepared to update their procurement and compliance practices to align with the new rules.
The full impact of Executive Order 14420 will depend heavily on forthcoming Department of Energy implementation regulations. Those rules are expected to clarify which foreign entities, countries, equipment types, and transaction structures will be restricted or subject to heightened review. Companies involved in bulk-power system projects should begin organizing supplier information, reviewing equipment sourcing, and evaluating potential alternative future procurement decisions that may be deemed necessary as a result of Executive Order 14420.