Tennessee House Bill HB2464

Tennessee 2025-2026 Regular Session

• Introduced: 2/3/26
• Refer: 2/5/26
• Failed: 3/4/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 4; Title 7; Title 8; Title 47, Chapter 18; Title 65 and Title 68, relative to products connected to foreign adversaries.

Impact

If enacted, HB 2464 will establish annual reporting and compliance audit mandates for electric utilities and HPC facilities. These entities must report the sources of their transformers and equipment, indicating that no products from foreign adversaries have been used in their operations. Additionally, utilities and HPC facilities will be subject to penalties for non-compliance, which could include civil penalties and the loss of operational licenses, thus introducing a significant regulatory burden intended to enhance state security against foreign influence.

Summary

House Bill 2464 aims to amend various titles of the Tennessee Code Annotated to regulate products sourced from foreign adversaries, specifically concerning electric utilities and high-performance computing (HPC) facilities. The bill introduces definitions for 'artificial intelligence', 'electric utility', 'foreign adversary', and 'HPC facility', laying the groundwork for new compliance requirements for these entities. By prohibiting the use of specific products manufactured or sold by foreign adversaries, the bill seeks to protect the integrity and security of the state’s electrical grid and computational facilities.

Contention

Discussion surrounding HB 2464 highlights a balance between national security concerns and the operational impact on local businesses. Proponents argue that the bill is essential to mitigate risks associated with foreign adversaries potentially interfering in critical infrastructure. However, detractors caution that stringent compliance requirements could lead to increased costs and logistical challenges for electric utilities and HPC facilities, particularly as they navigate the transition to alternative suppliers. As the bill stipulates precise repercussions for non-compliance, concerns have been raised about the feasibility and economic implications of these new regulations.