S. 1934: Securing Energy Supply Chains Act

This bill, titled the Securing Energy Supply Chains Act, aims to enhance the United States' national security regarding energy supply chains. Here’s a broad overview of what the bill entails:

Establishment of an Energy Non-Procurement List

Within 90 days of the bill's enactment, the Secretary of Energy must create a list of entities identified as engaging in activities that negatively impact U.S. national security, economic security, or foreign policy. This list is known as the Energy Non-Procurement List.

• The Secretary will focus on identifying entities involved in the production, manufacturing, processing, extraction, recycling, or assembly of critical materials and batteries.
• Entities that are included on this list may include foreign entities of concern, companies listed on specific military and security-related lists, or those that have majority ownership in such entities.
• The list will be updated at least once a year.

Reporting Requirements

Annually, starting one year after enactment, the Secretary must submit a report to Congress that includes:

• An updated Energy Non-Procurement List.
• A justification for the inclusion or removal of any entity, including classified information as necessary.

The unclassified portion of this report will be made available on the Department of Energy's website.

Procurement Prohibitions

Beginning one year after the enactment, the Secretary is barred from entering or renewing contracts with covered contractors—defined as contractors who either:

• Are on the Energy Non-Procurement List, or
• Source goods or services that involve components from these listed entities.

However, exceptions can be made if the required goods, services, or technologies are unavailable in the needed time or quantity, subject to the Secretary's conditions.

Monthly Reporting by Contractors

If a contract is made under the exception, contractors must report monthly on any agreements with entities on the Energy Non-Procurement List, or those that source components from such entities.

Study on Overlapping Lists

Within one year, the Secretary must conduct a study to identify any overlaps between various federal lists pertaining to:

• Foreign entities of concern.
• Entities under U.S. sanctions.
• Chinese military companies.
• Entities prohibited from federal procurement contracts.
• Entities collaborating with the Chinese Communist Party.

A report summarizing the findings and recommendations for harmonizing these lists will be submitted to Congress within the same timeframe.

Relevant Companies

• TSLA - Tesla, Inc. may be impacted due to its involvement in battery production and critical materials sourcing.
• AAPL - Apple Inc. could be affected as it relies on various suppliers for components, some of which might be on the Non-Procurement List.
• NVDA - NVIDIA Corporation may experience impacts related to its chip production, depending on the composition and sourcing of its materials.