H.R. 7635: Countering Harmful Adversarial Rechargeable and Generative Energy Act

The CHARGE Act, formally known as the Countering Harmful Adversarial Rechargeable and Generative Energy Act, is legislation introduced to address security concerns regarding energy storage systems imported from the People’s Republic of China (PRC). The bill specifically seeks to prohibit the importation of energy storage systems that have remote monitoring capabilities and are made by entities based in China or under the influence of the Chinese Communist Party (CCP).

Key Findings

The bill outlines several significant findings:

• The PRC is considered a security threat, particularly regarding its potential to infiltrate the United States energy grid.
• Energy storage systems manufactured in China may have capabilities that allow for remote monitoring, which could give China access to critical U.S. infrastructure.
• This type of access poses risks to the reliability and security of the U.S. energy grid.

Prohibition on Imports

The CHARGE Act establishes clear prohibitions:

• No person or entity may import energy storage systems with remote monitoring capabilities that are manufactured by companies organized in China or controlled by the CCP.

Implementation and Enforcement

The bill requires specific actions for its enforcement:

• Within 60 days of the bill’s enactment, the Commissioner of U.S. Customs and Border Protection (CBP) must create regulations to identify and enforce the prohibition on these imports.
• There will be periodic reviews conducted by CBP every 180 days and annually thereafter to evaluate the need for additional restrictions on these energy storage systems.

Penalties

Violators of this prohibition could face significant penalties, including:

• Up to 5 years in prison.
• Fines up to $250,000 for each violation.

Reporting Requirements

The bill mandates that the Secretary of Commerce, in consultation with the Secretaries of Energy and Homeland Security, submit a report to Congress:

• This report will detail the status of PRC-developed energy storage systems with remote monitoring capabilities in the U.S., with the first report due within 180 days of enactment.
• The requirement for these reports will end six years after the bill’s enactment.

Definitions

The bill includes specific definitions to clarify its terms:

• Energy storage system: Any device or product that can store electric current for later use.
• Remote monitoring capability: Any device capable of observing, collecting, or analyzing data related to communication or critical infrastructure systems.

Relevant Companies

• TSLA (Tesla, Inc.) - Tesla manufactures energy storage products like the Powerwall, which could be impacted by import restrictions on competitive products made in China.
• NIO (NIO Inc.) - NIO produces electric vehicles and related energy storage solutions, which may be affected by the prohibitions on imported systems.