Keep China Out of Solar Energy Act of 2025
Summary
The "Keep China Out of Solar Energy Act of 2025" aims to prohibit the procurement of solar panels manufactured or assembled in the People's Republic of China using federal funds. It directs the Office of Management and Budget (OMB) and the Federal Acquisition Regulatory Council to develop and implement standards and guidelines for executive agencies and federal contracts. The bill includes a waiver provision, allowing agency heads to bypass the prohibition under specific conditions, subject to approval by the Secretary of State and the Secretary of Homeland Security and reporting to Congress.
Expected Effects
This act would likely shift the supply chain for solar panels used in federal projects away from Chinese manufacturers. This could lead to increased demand for solar panels from other countries or domestic producers. The act also mandates studies and reports to assess the impact on the domestic solar panel market and global supply chain.
Potential Benefits
- Increased Domestic Production: Could stimulate the growth of the U.S. solar panel manufacturing industry.
- Reduced Reliance on Foreign Entities: Decreases dependence on a specific foreign nation for critical energy infrastructure components.
- Potential Job Creation: May lead to new jobs in domestic solar panel manufacturing and related industries.
- Enhanced National Security: Reduces potential vulnerabilities associated with foreign control over energy supply chains.
- Supply Chain Diversification: Encourages a more diverse and resilient global supply chain for solar panels.
Most Benefited Areas:
Potential Disadvantages
- Increased Costs: Solar panel procurement costs for federal projects could increase due to reliance on potentially more expensive sources.
- Project Delays: Sourcing solar panels from alternative suppliers could lead to delays in project implementation.
- Limited Supply: The domestic market might not be able to immediately meet the demand, leading to shortages.
- Trade Retaliation: China could retaliate with trade restrictions on other U.S. products or services.
- Reduced Competitiveness: U.S. solar energy projects could become less competitive compared to those in countries with access to cheaper Chinese-made panels.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the constitutional power of Congress to regulate commerce with foreign nations (Article I, Section 8, Clause 3). It also relates to the power to provide for the common defense and general welfare of the United States (Preamble). The reporting requirements to congressional committees ensure legislative oversight, consistent with constitutional principles of checks and balances. No specific constitutional conflicts are immediately apparent.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).