H.R. 1167: Keep China Out of Solar Energy Act of 2025

This bill, titled the Keep China Out of Solar Energy Act of 2025, proposes several measures aimed at restricting the U.S. federal government's procurement of solar panels from entities based in China. The primary goals and provisions of the bill include:

Prohibition on Federal Procurement

The bill seeks to ban federal agencies from purchasing solar panels manufactured or assembled by entities that are identified as "covered entities," which include businesses based in China or those controlled by the Chinese government. Key points include:

• Federal funds cannot be used to contract for, subcontract, or grant solar panels from these covered entities.
• Government-issued purchase cards cannot be utilized to buy such solar panels.
• The Director of the Office of Management and Budget (OMB), in consultation with the Administrator of General Services, is tasked with developing standards and guidelines for implementing this prohibition within 180 days after the bill is enacted.
• The Federal Acquisition Regulatory Council must amend federal acquisition regulations to reflect these prohibitions within the same timeframe.

Waivers for Exceptions

The bill includes a provision allowing for potential exemptions from the procurement ban:

• Heads of executive agencies can request a waiver if they certify that the covered entity is the only viable source for necessary solar panels.
• Any waiver request must be jointly approved by the Secretary of State and the Secretary of Homeland Security.
• Agency heads seeking a waiver must notify the OMB, which is then required to report to Congress quarterly about the requests and their outcomes.

Reporting Requirements

The bill mandates reporting and oversight to monitor compliance:

• The Comptroller General of the United States must prepare and submit a report to Congress detailing the amount of solar panels procured by federal entities from covered entities within 275 days of enactment.

Study of the Solar Panel Market

The bill calls for an independent study to assess various aspects of the solar panel production market, which includes:

• The current and future domestic production capacity for solar panels.
• The domestic market's ability to keep pace with technological advancements in the solar industry.
• An overview of the global supply chain and workforce involved with solar panel production.

This study must be commissioned within a year after the bill's enactment, and the findings need to be submitted to specific congressional committees within 30 days of completion.

Definitions

The bill outlines important definitions relevant to its implementation:

• "Covered entity" refers to any business located in China or influenced by the Chinese government.
• "Executive agency" has a specific legal definition under federal law.
• "Solar panel" is defined as crystalline silicon photovoltaic cells and modules.

Timeline and Implementation

The bill establishes a timeline for various actions to be completed, including the development of guidelines and the completion of studies within specified periods after the enactment.

Relevant Companies

• TSLA - Tesla, Inc.: A major player in the solar market with significant investments in solar technology.
• ENPH - Enphase Energy, Inc.: A company that designs and manufactures solar microinverters and energy management technology.
• SUNE - SunEdison, Inc.: Although it has faced challenges, it was a significant player in solar energy and may be impacted by procurement restrictions.