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Key Recommendations
The Commission recommends:
To protect the U.S. power grid from the economic and cyber-security threats posed by Chinese-made components, Congress should:
- Prohibit the import of energy storage systems with remote monitoring capabilities that are manufactured by or made with technology licensed from Chinese entities.
- Allocate additional funds to the U.S. Department of Energy for grid expansion, modernization, and cybersecurity grant and loan programs and prohibit the use of those grants and loans to purchase goods or services or license technology from entities that pose a cybersecurity risk to the U.S. power grid to be designated by the Secretary of Energy, in coordination with the Secretary of Defense, Secretary of Homeland Security, the Director of the National Security Agency, and the heads of other federal departments and agencies, as the Secretary determines appropriate.
- Direct the Department of Energy and Federal Energy Regulatory Commission to strengthen supply chain risk management requirements for interstate electric transmission utilities by:
- Requiring utilities to identify all Chinese-origin components within their high- and medium-impact bulk electric system and protected cyber assets;
- Developing requirements to prohibit the installation of or mitigate the cybersecurity risk posed by those components;
- Requiring that future procurement of such cyber assets come with full software, firmware, and hardware bills of materials;
- Mandating that interstate transmission utilities report on their use of Chinese-origin components to their distribution utility customers; and
- Coordinating with the U.S. Department of Homeland Security and other relevant agencies to provide technical assistance to implement these requirements.
(From Chapter 10: Power Surge: China's Electrification Drive and Push for Global Energy Dominance. Key Recommendation V)
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