October 08, 2024

H.R. 9608 Will Provide Business Certainty for Manufacturers of Critical Grid Components in the Face of Increasingly Frequent and Severe Natural Disasters

Arlington, Va. – The National Electrical Manufacturers Association (NEMA) is proud to support H.R. 9608 introduced by Rep. Mariannette Miller-Meeks (R-IA). The Limiting Liability for Critical Infrastructure Manufacturers Act will help ensure that manufacturers of critical grid components can continue to domestically produce the electrical equipment that is vital to the security, reliability, and resiliency of the power grid Americans rely on.

The increased frequency and severity of natural disasters and extreme weather events affecting the power grid pose challenges for manufacturers of critical grid infrastructure who have invested billions to expand production capacity. Manufacturers of critical grid infrastructure include companies that produce power transmission equipment, electric motors, engines and turbines, transformers, generators, and other products necessary for our nation’s grid to provide on-demand energy to customers. H.R. 9608 will provide much-needed liability protection and business certainty to these manufacturers.

Specifically, the bill would protect manufacturers from claims resulting from wildfire incidents absent proof the manufacturer engaged in willful misconduct in the design or production of such equipment. Liability protections would help manage risk, allowing manufacturers to maintain insurance coverage and remain economically competitive. This will also help shore up domestic critical grid component supply chains and reduce reliance on foreign producers, including China.

“An unfortunate consequence of the continuing severity of natural disasters is the steadily increasing liability risks for our nation’s manufacturers of critical grid components,” said NEMA President and CEO Debra Phillips. “At a time when we need to ensure our grid remains resilient and connected, Rep. Miller-Meeks’ legislation will help address this problem and ensure electrical manufacturers can continue to do the important work of modernizing our grid to help deliver electricity reliably, efficiently, and sustainably to communities across the United States. We thank Rep. Miller-Meeks for her dedication to ensuring grid resilience and look forward to working with her to advance this vital piece of legislation.”

“It is important to protect responsible critical infrastructure manufacturers – who are vital to America’s supply chains – from meritless and bad-faith lawsuits. Instead, we must encourage continued research and development in wildfire mitigation technology as well as commonsense government policies to reduce wildfire risk. In Congress, I will continue to push for a cleaner, healthier environment while ensuring our critical infrastructure supply chains are secure,” said Representative Miller-Meeks (R-IA).