Senate Bill 2680, also known as House Bill 2464, amends various sections of the Tennessee Code Annotated to establish regulations regarding the use of products sourced from foreign adversaries by electric utilities and high-performance computing (HPC) facilities. The bill defines 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.

The bill outlines a compliance framework, including penalties for violations. If an electric utility or HPC facility fails to comply, the comptroller must notify them and local governments, and the facility may face suspension of operating licenses or permits. The attorney general can pursue civil penalties for violations, and residents aggrieved by noncompliance may bring civil actions for damages. 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.