Keep China Out of Solar Energy Act of 2025
- Bill Number
- S. 3320
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2025-12-03: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- Last Updated
- 2026-01-08T17:48:57Z
AI-Generated Summary
Purpose
The "Keep China Out of Solar Energy Act of 2025" aims to prevent the U.S. federal government from purchasing solar panels produced or assembled in the People's Republic of China (PRC). It seeks to reduce reliance on Chinese entities in the solar energy supply chain, promote domestic production, and address national security concerns related to foreign influence.
Key Provisions
- Procurement Prohibition: Within 180 days of enactment, the Director of the Office of Management and Budget (OMB), in consultation with the Administrator of General Services (GSA), must create standards and guidelines for executive agencies (federal departments and agencies) to block the use of federal funds for buying solar panels from "covered entities" through contracts, subcontracts, grants, subgrants, or government purchase cards. The Federal Acquisition Regulation (FAR)—a key set of rules governing federal contracting—must be updated within the same timeframe to enforce this for contracts and subcontracts.
- Definition of Covered Entity: Any entity based in the PRC or subject to influence or control by the PRC government or Communist Party, as determined by the Secretary of Homeland Security.
- Definition of Solar Panel: Limited to crystalline silicon photovoltaic (PV) cells and modules, which convert sunlight into electricity.
- Waiver Process: Agency heads can request a waiver if the covered entity is the only available source. The request requires certification to the Secretary of State and Secretary of Homeland Security, who must jointly approve it. OMB must notify Congress quarterly on waiver requests, including approvals or rejections, via reports to specific Senate and House committees (e.g., Homeland Security and Governmental Affairs, Foreign Relations).
- Reporting and Study Requirements:
- The Comptroller General (head of the Government Accountability Office, an independent auditor) must report to Congress within 275 days on the volume of solar panels previously bought from covered entities by federal agencies.
- Within one year, OMB must contract with a federally funded research and development center (an independent nonprofit organization) to study the U.S. domestic solar panel market, its ability to match industry technological progress, and the global supply chain and workforce. The study must be submitted to relevant congressional committees (e.g., Energy and Natural Resources, Homeland Security) within 30 days of completion.
Significant Changes to Existing Law
- Introduces a specific ban on procuring certain solar panels from PRC-linked entities, which is not currently in place under general federal acquisition rules.
- Amends the FAR to incorporate this prohibition, expanding restrictions beyond existing laws like the Buy American Act (which favors U.S.-made goods but allows waivers) by targeting PRC influence explicitly for national security reasons.
- Adds new waiver, reporting, and study mandates, creating structured oversight not previously required for solar energy procurement.
Potential Impacts
- On Government Agencies: Federal agencies will face restrictions on solar panel purchases, potentially increasing costs or delaying renewable energy projects if domestic alternatives are limited. Waivers provide flexibility but require high-level approvals, adding administrative burden.
- On Citizens: Could indirectly support U.S. jobs in solar manufacturing and enhance energy security by diversifying supply chains, but may raise federal spending on energy infrastructure if non-PRC options are more expensive.
- On International Relations: Likely to heighten U.S.-China trade tensions, signaling a push to decouple from Chinese dominance in solar production (China controls much of the global market). This could affect bilateral agreements on clean energy or provoke retaliatory measures, while encouraging alliances with other solar-producing nations.
Main Stakeholders Affected
- Federal Government: Executive agencies (e.g., Department of Defense, Energy) as primary procurers; OMB, GSA, and Homeland Security for implementation and determinations.
- U.S. Solar Industry: Domestic manufacturers and workers, who may benefit from reduced competition and increased federal demand.
- Chinese Entities: Companies domiciled in or controlled by the PRC, facing exclusion from U.S. federal markets.
- Congress: Oversight committees (e.g., Senate Homeland Security and Governmental Affairs, House Oversight and Reform) for reviews and reports.
- Taxpayers and Environment: Broader public through impacts on federal budgets, renewable energy adoption, and energy independence.
Notable Legal, Constitutional, or Political Implications
- Legal: Relies on executive authority over federal procurement (under Title 41 of the U.S. Code) and national security powers, but waivers ensure due process to avoid arbitrary exclusions. The broad definition of "covered entity" (based on DHS determination) could invite legal challenges over fairness or evidence of control.
- Constitutional: Aligns with Congress's spending power (Article I) to direct federal funds, but may raise First Amendment concerns if determinations of "influence" affect free speech or association; however, it focuses on procurement, not speech.
- Political: Reinforces bipartisan concerns over PRC economic and security threats (introduced by Senators Scott and Hawley), potentially advancing U.S. clean energy goals under frameworks like the Inflation Reduction Act while escalating trade policy debates. The required study could inform future legislation on domestic manufacturing incentives.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2025-12-03: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- 2025-12-03: Introduced in Senate
Bill Versions
- Keep China Out of Solar Energy Act of 2025 — issued 2025-12-03 — PDF (5 pages)