S. 2593: Preventing Remote Operations by Threatening Entities on Critical Technology for the Grid Act

This bill, known as the Preventing Remote Operations by Threatening Entities on Critical Technology for the Grid Act (PROTECT the Grid Act), aims to address vulnerabilities to the U.S. electric grid that arise from Internet-connected devices and applications. The bill acknowledges the increasing presence of high-wattage Internet of Things (IoT) devices, such as electric vehicle chargers and smart appliances, in homes. It raises concerns about the potential risks these devices pose, particularly when they are controlled by foreign companies, which may have ties to adversarial governments.

Key Objectives of the Bill

• The bill mandates the Secretary of Commerce, in coordination with other relevant federal officials, to assess the security risks that these foreign-controlled applications may present to the electric grid.
• A report must be submitted within 270 days of enactment, detailing these risks and recommendations for addressing them, which could include restrictions on the use of certain technologies linked to foreign adversaries.

Identified Risks

The bill outlines multiple findings supporting its rationale, including:

• The rapid increase in IoT devices can be leveraged for coordinated attacks on the electric grid by foreign adversaries.
• There is a risk that smart appliances, when controlled through foreign applications, could be manipulated to create large-scale disruptions or blackouts.
• Foreign-controlled companies that produce these devices might have access to sensitive data that could be exploited in a conflict.
• Legal frameworks in adversarial countries, like China, enhance their capacity to interfere with U.S. infrastructure through such technologies.

Report Recommendations

The report developed by the Secretary of Commerce will include:

• An evaluation of how existing Executive Orders related to securing critical technology can be applied to IoT devices.
• Advising on certifications or labeling requirements for IoT devices.
• Recommendations for federal purchasing policies to restrict products that may pose security risks.

Definitions and Scope

The bill specifies terms such as "high-wattage IoT device," which refers to any device using over 500 watts, and outlines what constitutes a “foreign adversary.” It defines covered entities, which may include companies operating under foreign government influence, that are of concern regarding their involvement with technology that could affect the grid.

Implementation of Existing Orders

Additionally, the legislation seeks to codify existing executive actions aimed at securing the information supply chain against manipulation and ensuring that foreign adversary-controlled applications do not jeopardize the electric grid’s stability.

Relevant Companies

• NIO Inc. (NIO) - This electric vehicle manufacturer may be impacted due to its ties to Chinese technology and the potential inclusion of its products in the analysis of vulnerabilities to the electric grid.
• Alphabet Inc. (GOOGL) - As the parent company of Google, which has interests in smart appliances and home automation, it may be scrutinized for its products that connect to the grid.
• Apple Inc. (AAPL) - As a major player in the smart device market, this company could face regulations regarding its smart home technology under this bill.