China is doing exactly the same. According to the latest law from the News Regulation Bureau, it requires everyone to register their real life identity to get online to protect Internet security.
It's not so uncommon in paranoid jurisdictions. I don't know the situation now, but when I was in Italy a few years ago you couldn't even use an internet cafe without showing ID.
"our power grids, air and ground transportation, telecommunications, and water-filtration systems are in jeopardy."
Simple solution to all but one of those: unplug the uplink cable. There's no reason that systems with control over power grids or water filtration systems should be connecting to any public network.