Securing Energy Supply Chains Act

Bill Number

S. 1934

Origin Chamber

Senate

Congress

119th Congress, Session 1

Policy Area

Energy

Status

Introduced

Latest Action

2025-06-03: Read twice and referred to the Committee on Energy and Natural Resources.

Last Updated

2026-03-24T12:48:03Z

AI-Generated Summary

Purpose of the Legislation

The Securing Energy Supply Chains Act aims to protect U.S. national security, economic security, and foreign policy by requiring the Department of Energy (DOE) to identify and restrict dealings with entities—especially foreign ones—that engage in harmful activities. It focuses on securing supply chains for critical materials (like rare earth elements essential for energy technologies) and batteries, reducing reliance on potentially adversarial sources.

Key Provisions

• Energy Non-Procurement List:
• The Secretary of Energy must create this list within 90 days of enactment, identifying entities based on credible information that they harm U.S. interests.
• Prioritizes entities involved in producing, processing, or supplying critical materials or batteries (including components).
• Mandatory inclusions: Foreign entities of concern (as defined in existing law, typically those controlled by adversarial governments like China), entities on the Department of Defense's Chinese Military Company List, or entities majority-owned by listed ones.
• Optional inclusions: Entities on the Commerce Department's Consolidated Screening List (a broad export control list) or others deemed risky by the Secretary.
• The list must be updated at least annually, with consultations from other federal agencies allowed.

• Reporting Requirements:
• Annual reports to Senate and House committees on the list and justifications for changes; unclassified list portion published online, with classified details in an annex.

• Procurement Prohibition:
• Starting one year after enactment, DOE cannot contract with "covered contractors" (prime contractors or leads on projects) that procure from listed entities or use their components.
• Exception: Allowed if alternatives are unavailable in the needed manner, timeline, or quantity; limited duration tied to project needs, with monthly reporting by contractors on dealings with listed entities.
• DOE must report exceptions to Congress within 90 days, including analysis of domestic or allied alternatives and recommendations to develop them.

• List Overlap Study:
• Within one year, DOE (coordinating with Commerce, Defense, State, Treasury, National Intelligence Director, and others) must study overlapping federal lists on foreign entities of concern, sanctioned entities, Chinese military companies, procurement bans, and those tied to the Chinese Communist Party.
• Report to Congress with results and recommendations to harmonize lists for clearer federal contracting guidance.

Significant Changes to Existing Law

• Introduces a new, DOE-specific "Energy Non-Procurement List" that builds on but expands existing tools, such as the Infrastructure Investment and Jobs Act's definition of foreign entities of concern and the Defense Department's Chinese Military Company List.
• Adds targeted procurement bans for energy supply chains, with exceptions and reporting not previously mandated in this focused way.
• Requires a first-of-its-kind interagency study on list overlaps, potentially leading to broader federal coordination on entity restrictions.

Potential Impacts

• Government Agencies: DOE faces new administrative burdens (list creation, updates, reporting) and procurement restrictions, potentially increasing costs or delays in energy projects; other agencies may see harmonized lists, streamlining enforcement.
• Citizens: Could enhance energy security by promoting domestic or allied sourcing of critical materials and batteries, reducing vulnerabilities in electric vehicles, renewables, and defense tech; however, short-term supply disruptions or higher costs for energy-related goods might affect consumers and industries.
• International Relations: May strain ties with countries like China by blacklisting their entities, signaling U.S. efforts to decouple from adversarial supply chains; encourages partnerships with "friendly" nations for alternatives, potentially boosting alliances in energy trade.

Main Stakeholders Affected

• Department of Energy and Federal Agencies: Primary implementers, including contractors and procurement officers.
• Energy Sector Businesses: U.S. and foreign companies in critical materials, batteries, and supply chains; covered contractors must avoid listed entities or seek exceptions.
• Foreign Entities: Especially Chinese firms on military or concern lists, facing U.S. market exclusion.
• U.S. Manufacturers and Workers: Potential beneficiaries through incentives for domestic production, but initial challenges in scaling up.
• Congress: Receives reports and study, influencing oversight and future policy.
• General Public: Indirectly affected via energy prices, job creation in secure supply chains, and national security.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens executive authority in national security-based procurement (under existing laws like the Federal Acquisition Regulation), but exceptions and reporting add accountability; potential challenges if list criteria are seen as vague or discriminatory under trade laws.
• Constitutional: Aligns with Congress's power to regulate commerce and foreign affairs (Article I, Section 8), delegating implementation to the executive while requiring congressional oversight to prevent overreach.
• Political: Targets threats from specific actors (e.g., Chinese entities), reflecting bipartisan concerns over supply chain vulnerabilities; could influence U.S.-China relations and domestic industrial policy without direct funding, relying on existing budgets.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Cotton, Tom [R-AR]

Cosponsors (1)

Sen. Risch, James E. [R-ID]

Recent Actions

• 2025-06-03: Read twice and referred to the Committee on Energy and Natural Resources.
• 2025-06-03: Introduced in Senate

Bill Versions

• Securing Energy Supply Chains Act — issued 2025-06-03 — PDF (8 pages)