H.R.1167 - Keep China Out of Solar Energy Act of 2025 (119th Congress)
Summary
H.R.1167, the "Keep China Out of Solar Energy Act of 2025," aims to prohibit the procurement of solar panels manufactured or assembled in the People's Republic of China using federal funds. The bill directs the Office of Management and Budget (OMB) and the Federal Acquisition Regulatory Council to develop standards and amend regulations to prevent such procurement. It also includes a waiver provision, allowing agency heads to bypass the prohibition under specific conditions, subject to approval by the Secretaries of State and Homeland Security and reporting requirements to Congress.
Expected Effects
The Act, if enacted, would likely shift the supply chain for solar panels used in federal projects away from Chinese manufacturers. This could lead to increased demand for solar panels from other countries or domestic producers. The Act also mandates studies and reports to assess the domestic solar panel market and the impact of the prohibition.
Potential Benefits
- Increased domestic solar panel production: The Act could incentivize the growth of the U.S. solar panel manufacturing industry.
- Reduced reliance on foreign entities: It aims to decrease dependence on China for critical energy infrastructure components.
- Enhanced national security: By limiting Chinese involvement, the Act seeks to mitigate potential security risks associated with foreign control over energy resources.
- Job creation: A growing domestic solar panel industry could lead to new employment opportunities in manufacturing, research, and development.
- Supply chain diversification: Encourages a more diverse and resilient supply chain for solar panels.
Most Benefited Areas:
Potential Disadvantages
- Increased costs: Solar panels from non-Chinese sources may be more expensive, potentially increasing the cost of federal projects.
- Project delays: Finding alternative suppliers and adjusting procurement processes could cause delays in solar energy projects.
- Limited supply: The domestic solar panel industry may not be able to immediately meet the demand created by the prohibition.
- Retaliatory measures: China could respond with trade restrictions or other measures that harm U.S. interests.
- Reduced competitiveness: U.S. companies may face higher energy costs if solar panel prices increase, potentially impacting their competitiveness.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Constitution's broad goals of providing for the common defense and promoting the general welfare (Preamble). Congress has the power to regulate commerce with foreign nations (Article I, Section 8), which supports the Act's restrictions on solar panel procurement from China. The waiver provision and reporting requirements also reflect Congress's oversight role. However, the Act's potential impact on energy costs and project efficiency could raise questions about its effectiveness in promoting the general welfare.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).