Senate Bill 2680 aims to regulate the use of products sourced from foreign adversaries by electric utilities and high-performance computing (HPC) facilities in Tennessee. The bill introduces a new part to Tennessee Code Annotated, Title 8, Chapter 4, defining key terms such as "artificial intelligence," "electric utility," "foreign adversary," and "high-performance computing facility." It prohibits electric utilities and HPC facilities from using transformers, parts, or equipment manufactured or sold by entities owned or controlled by foreign adversaries. Both types of entities are required to report the sources of their equipment annually to the comptroller of the treasury and conduct internal audits to ensure compliance.

In addition to the reporting requirements, the bill outlines the consequences for noncompliance, including the potential suspension of operating licenses or permits by local governments and civil penalties imposed by the attorney general. Residents aggrieved by violations may also bring civil actions for damages. The comptroller of the treasury is tasked with posting compliance information and notices of noncompliance on its website. The act is set to take effect on July 1, 2026, and includes a severability clause to ensure that if any provision is found invalid, the remaining provisions remain in effect.