Securing Energy Supply Chains Act
Summary
The Securing Energy Supply Chains Act aims to protect U.S. national and economic security by requiring the Secretary of Energy to identify entities engaged in activities detrimental to these interests, particularly those involved in the energy supply chain.
The Act mandates the creation of an "Energy Non-Procurement List" of such entities and prohibits the Department of Energy (DOE) from contracting with them, with certain exceptions. It also requires studies and reports to Congress on overlapping lists of foreign entities of concern.
This legislation seeks to bolster domestic energy security and reduce reliance on potentially adversarial foreign entities.
Expected Effects
The Act will likely lead to a restructuring of the DOE's procurement processes, prioritizing suppliers not deemed detrimental to U.S. interests. This could result in increased costs and potential delays in some projects, at least initially, as alternative suppliers are identified and vetted.
It may also incentivize the development of domestic sources for critical materials and battery components. The long-term effect would be a more secure and resilient energy supply chain, less vulnerable to foreign influence.
Potential Benefits
- Enhanced national security by reducing reliance on foreign entities of concern in the energy sector.
- Increased energy security through the development of domestic supply chains for critical materials and battery components.
- Potential for job creation in the U.S. energy sector as domestic production is incentivized.
- Greater transparency in DOE contracting through the required reporting on entities included on the Energy Non-Procurement List.
- Strengthened economic security by protecting U.S. companies from unfair competition from foreign entities engaged in detrimental activities.
Potential Disadvantages
- Potential for increased costs in DOE projects due to the restriction on contracting with certain foreign entities.
- Possible delays in project timelines as alternative suppliers are identified and vetted.
- Risk of unintended consequences if the definition of "activities detrimental to national security" is too broad, potentially harming legitimate businesses.
- Potential for retaliatory actions from foreign governments if their entities are placed on the Energy Non-Procurement List.
- Increased administrative burden on the Department of Energy to establish and maintain the Energy Non-Procurement List and conduct the required studies and reports.
Constitutional Alignment
The Act appears to align with the constitutional mandate to "provide for the common defence" (Preamble) by strengthening national security through energy independence. Congress's power to regulate commerce with foreign nations (Article I, Section 8, Clause 3) supports the Act's restrictions on contracting with certain foreign entities.
The Act's focus on national security and economic security falls within the broad scope of powers delegated to the federal government. However, the implementation of the Act must respect due process and avoid arbitrary or discriminatory actions against individuals or entities, consistent with the Fifth Amendment.
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).