America's Supply Chains, 11849-11854 [2021-04280]

Agencies

• Executive Office of the President

[Federal Register Volume 86, Number 38 (Monday, March 1, 2021)]
[Presidential Documents]
[Pages 11849-11854]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-04280]




                        Presidential Documents 



Federal Register / Vol. 86, No. 38 / Monday, March 1, 2021 / 
Presidential Documents

[[Page 11849]]


                Executive Order 14017 of February 24, 2021

                
America's Supply Chains

                By the authority vested in me as President by the 
                Constitution and the laws of the United States of 
                America, it is hereby ordered as follows:

                Section 1. Policy. The United States needs resilient, 
                diverse, and secure supply chains to ensure our 
                economic prosperity and national security. Pandemics 
                and other biological threats, cyber-attacks, climate 
                shocks and extreme weather events, terrorist attacks, 
                geopolitical and economic competition, and other 
                conditions can reduce critical manufacturing capacity 
                and the availability and integrity of critical goods, 
                products, and services. Resilient American supply 
                chains will revitalize and rebuild domestic 
                manufacturing capacity, maintain America's competitive 
                edge in research and development, and create well-
                paying jobs. They will also support small businesses, 
                promote prosperity, advance the fight against climate 
                change, and encourage economic growth in communities of 
                color and economically distressed areas.

                More resilient supply chains are secure and diverse--
                facilitating greater domestic production, a range of 
                supply, built-in redundancies, adequate stockpiles, 
                safe and secure digital networks, and a world-class 
                American manufacturing base and workforce. Moreover, 
                close cooperation on resilient supply chains with 
                allies and partners who share our values will foster 
                collective economic and national security and 
                strengthen the capacity to respond to international 
                disasters and emergencies.

                Therefore, it is the policy of my Administration to 
                strengthen the resilience of America's supply chains.

                Sec. 2. Coordination. The Assistant to the President 
                for National Security Affairs (APNSA) and the Assistant 
                to the President for Economic Policy (APEP) shall 
                coordinate the executive branch actions necessary to 
                implement this order through the interagency process 
                identified in National Security Memorandum 2 of 
                February 4, 2021 (Renewing the National Security 
                Council System). In implementing this order, the heads 
                of agencies should, as appropriate, consult outside 
                stakeholders--such as those in industry, academia, non-
                governmental organizations, communities, labor unions, 
                and State, local, and Tribal governments--in order to 
                fulfill the policy identified in section 1 of this 
                order.

                Sec. 3. 100-Day Supply Chain Review. (a) To advance the 
                policy described in section 1 of this order, the APNSA 
                and the APEP, in coordination with the heads of 
                appropriate agencies, as defined in section 6(a) of 
                this order, shall complete a review of supply chain 
                risks, as outlined in subsection (b) of this section, 
                within 100 days of the date of this order.

                    (b) Within 100 days of the date of this order, the 
                specified heads of agencies shall submit the following 
                reports to the President, through the APNSA and the 
                APEP:

(i) The Secretary of Commerce, in consultation with the heads of 
appropriate agencies, shall submit a report identifying risks in the 
semiconductor manufacturing and advanced packaging supply chains and policy 
recommendations to address these risks. The report shall include the items 
described in section 4(c) of this order.

(ii) The Secretary of Energy, in consultation with the heads of appropriate 
agencies, shall submit a report identifying risks in the supply chain for

[[Page 11850]]

high-capacity batteries, including electric-vehicle batteries, and policy 
recommendations to address these risks. The report shall include the items 
described in section 4(c) of this order.

(iii) The Secretary of Defense (as the National Defense Stockpile Manager), 
in consultation with the heads of appropriate agencies, shall submit a 
report identifying risks in the supply chain for critical minerals and 
other identified strategic materials, including rare earth elements (as 
determined by the Secretary of Defense), and policy recommendations to 
address these risks. The report shall also describe and update work done 
pursuant to Executive Order 13953 of September 30, 2020 (Addressing the 
Threat to the Domestic Supply Chain From Reliance on Critical Minerals From 
Foreign Adversaries and Supporting the Domestic Mining and Processing 
Industries). The report shall include the items described in section 4(c) 
of this order.

(iv) The Secretary of Health and Human Services, in consultation with the 
heads of appropriate agencies, shall submit a report identifying risks in 
the supply chain for pharmaceuticals and active pharmaceutical ingredients 
and policy recommendations to address these risks. The report shall 
complement the ongoing work to secure the supply chains of critical items 
needed to combat the COVID-19 pandemic, including personal protective 
equipment, conducted pursuant to Executive Order 14001 of January 21, 2021 
(A Sustainable Public Health Supply Chain). The report shall include the 
items described in section 4(c) of this order.

                    (c) The APNSA and the APEP shall review the reports 
                required under subsection (b) of this section and shall 
                submit the reports to the President in an unclassified 
                form, but may include a classified annex.
                    (d) The APNSA and the APEP shall include a cover 
                memorandum to the set of reports submitted pursuant to 
                this section, summarizing the reports' findings and 
                making any additional overall recommendations for 
                addressing the risks to America's supply chains, 
                including the supply chains for the products identified 
                in subsection (b) of this section.

                Sec. 4. Sectoral Supply Chain Assessments. (a) Within 1 
                year of the date of this order, the specified heads of 
                agencies shall submit the following reports to the 
                President, through the APNSA and the APEP:

(i) The Secretary of Defense, in consultation with the heads of appropriate 
agencies, shall submit a report on supply chains for the defense industrial 
base that updates the report provided pursuant to Executive Order 13806 of 
July 21, 2017 (Assessing and Strengthening the Manufacturing and Defense 
Industrial Base and Supply Chain Resiliency of the United States), and 
builds on the Annual Industrial Capabilities Report mandated by the 
Congress pursuant to section 2504 of title 10, United States Code. The 
report shall identify areas where civilian supply chains are dependent upon 
competitor nations, as determined by the Secretary of Defense.

(ii) The Secretary of Health and Human Services, in consultation with the 
heads of appropriate agencies, shall submit a report on supply chains for 
the public health and biological preparedness industrial base (as 
determined by the Secretary of Health and Human Services). The report shall 
complement the work conducted pursuant to section 4 of Executive Order 
14001.

(iii) The Secretary of Commerce and the Secretary of Homeland Security, in 
consultation with the heads of appropriate agencies, shall submit a report 
on supply chains for critical sectors and subsectors of the information and 
communications technology (ICT) industrial base (as determined by the 
Secretary of Commerce and the Secretary of Homeland Security), including 
the industrial base for the development of ICT software, data, and 
associated services.

(iv) The Secretary of Energy, in consultation with the heads of appropriate 
agencies, shall submit a report on supply chains for the energy sector 
industrial base (as determined by the Secretary of Energy).

[[Page 11851]]

(v) The Secretary of Transportation, in consultation with the heads of 
appropriate agencies, shall submit a report on supply chains for the 
transportation industrial base (as determined by the Secretary of 
Transportation).

(vi) The Secretary of Agriculture, in consultation with the heads of 
appropriate agencies, shall submit a report on supply chains for the 
production of agricultural commodities and food products.

                    (b) The APNSA and the APEP shall, as appropriate 
                and in consultation with the heads of appropriate 
                agencies, recommend adjustments to the scope for each 
                industrial base assessment, including digital networks, 
                services, assets, and data (``digital products''), 
                goods, services, and materials that are relevant within 
                more than one defined industrial base, and add new 
                assessments, as appropriate, for goods and materials 
                not included in the above industrial base assessments.
                    (c) Each report submitted under subsection (a) of 
                this section shall include a review of:

(i) the critical goods and materials, as defined in section 6(b) of this 
order, underlying the supply chain in question;

(ii) other essential goods and materials, as defined in section 6(d) of 
this order, underlying the supply chain in question, including digital 
products;

(iii) the manufacturing or other capabilities necessary to produce the 
materials identified in subsections (c)(i) and (c)(ii) of this section, 
including emerging capabilities;

(iv) the defense, intelligence, cyber, homeland security, health, climate, 
environmental, natural, market, economic, geopolitical, human-rights or 
forced-labor risks or other contingencies that may disrupt, strain, 
compromise, or eliminate the supply chain--including risks posed by supply 
chains' reliance on digital products that may be vulnerable to failures or 
exploitation, and risks resulting from the elimination of, or failure to 
develop domestically, the capabilities identified in subsection (c)(iii) of 
this section--and that are sufficiently likely to arise so as to require 
reasonable preparation for their occurrence;

(v) the resilience and capacity of American manufacturing supply chains and 
the industrial and agricultural base--whether civilian or defense--of the 
United States to support national and economic security, emergency 
preparedness, and the policy identified in section 1 of this order, in the 
event any of the contingencies identified in subsection (c)(iv) of this 
section occurs, including an assessment of:

  (A) the manufacturing or other needed capacities of the United States, 
including the ability to modernize to meet future needs;

  (B) gaps in domestic manufacturing capabilities, including nonexistent, 
extinct, threatened, or single-point-of-failure capabilities;

  (C) supply chains with a single point of failure, single or dual 
suppliers, or limited resilience, especially for subcontractors, as defined 
by section 44.101 of title 48, Code of Federal Regulations (Federal 
Acquisition Regulation);

  (D) the location of key manufacturing and production assets, with any 
significant risks identified in subsection (c)(iv) of this section posed by 
the assets' physical location;

  (E) exclusive or dominant supply of critical goods and materials and 
other essential goods and materials, as identified in subsections (c)(i) 
and (c)(ii) of this section, by or through nations that are, or are likely 
to become, unfriendly or unstable;

  (F) the availability of substitutes or alternative sources for critical 
goods and materials and other essential goods and materials, as identified 
in subsections (c)(i) and (c)(ii) of this section;

[[Page 11852]]

  (G) current domestic education and manufacturing workforce skills for the 
relevant sector and identified gaps, opportunities, and potential best 
practices in meeting the future workforce needs for the relevant sector;

  (H) the need for research and development capacity to sustain leadership 
in the development of critical goods and materials and other essential 
goods and materials, as identified in subsections (c)(i) and (c)(ii) of 
this section;

  (I) the role of transportation systems in supporting existing supply 
chains and risks associated with those transportation systems; and

  (J) the risks posed by climate change to the availability, production, or 
transportation of critical goods and materials and other essential goods 
and materials, as identified in subsections (c)(i) and (c)(ii) of this 
section.

(vi) allied and partner actions, including whether United States allies and 
partners have also identified and prioritized the critical goods and 
materials and other essential goods and materials identified in subsections 
(c)(i) and (c)(ii) of this section, and possible avenues for international 
engagement. In assessing these allied and partner actions, the heads of 
agencies shall consult with the Secretary of State;

(vii) the primary causes of risks for any aspect of the relevant industrial 
base and supply chains assessed as vulnerable pursuant to subsection (c)(v) 
of this section;

(viii) a prioritization of the critical goods and materials and other 
essential goods and materials, including digital products, identified in 
subsections (c)(i) and (c)(ii) of this section for the purpose of 
identifying options and policy recommendations. The prioritization shall be 
based on statutory or regulatory requirements; importance to national 
security, emergency preparedness, and the policy set forth in section 1 of 
this order; and the review conducted pursuant to subsection (c)(v) of this 
section;

(ix) specific policy recommendations for ensuring a resilient supply chain 
for the sector. Such recommendations may include sustainably reshoring 
supply chains and developing domestic supplies, cooperating with allies and 
partners to identify alternative supply chains, building redundancy into 
domestic supply chains, ensuring and enlarging stockpiles, developing 
workforce capabilities, enhancing access to financing, expanding research 
and development to broaden supply chains, addressing risks due to 
vulnerabilities in digital products relied on by supply chains, addressing 
risks posed by climate change, and any other recommendations;

(x) any executive, legislative, regulatory, and policy changes and any 
other actions to strengthen the capabilities identified in subsection 
(c)(iii) of this section, and to prevent, avoid, or prepare for any of the 
contingencies identified in subsection (c)(iv) of this section; and

(xi) proposals for improving the Government-wide effort to strengthen 
supply chains, including proposals for coordinating actions required under 
this order with ongoing efforts that could be considered duplicative of the 
work of this order or with existing Government mechanisms that could be 
used to implement this order in a more effective manner.

                    (d) The APNSA and the APEP shall review the reports 
                required under subsection (a) of this section and shall 
                submit the reports to the President in an unclassified 
                form, but may include a classified annex.

                Sec. 5. General Review and Recommendations. As soon as 
                practicable following the submission of the reports 
                required under section 4 of this order, the APNSA and 
                the APEP, in coordination with the heads of appropriate 
                agencies, shall provide to the President one or more 
                reports reviewing the actions taken over the previous 
                year and making recommendations concerning:

                    (a) steps to strengthen the resilience of America's 
                supply chains;
                    (b) reforms needed to make supply chain analyses 
                and actions more effective, including statutory, 
                regulatory, procedural, and institutional design

[[Page 11853]]

                changes. The report shall include recommendations on 
                whether additional offices, personnel, resources, 
                statistical data, or authorities are needed;
                    (c) establishment of a quadrennial supply chain 
                review, including processes and timelines regarding 
                ongoing data gathering and supply chain monitoring;
                    (d) diplomatic, economic, security, trade policy, 
                informational, and other actions that can successfully 
                engage allies and partners to strengthen supply chains 
                jointly or in coordination;
                    (e) insulating supply chain analyses and actions 
                from conflicts of interest, corruption, or the 
                appearance of impropriety, to ensure integrity and 
                public confidence in supply chain analyses;
                    (f) reforms to domestic and international trade 
                rules and agreements needed to support supply chain 
                resilience, security, diversity, and strength;
                    (g) education and workforce reforms needed to 
                strengthen the domestic industrial base;
                    (h) steps to ensure that the Government's supply 
                chain policy supports small businesses, prevents 
                monopolization, considers climate and other 
                environmental impacts, encourages economic growth in 
                communities of color and economically distressed areas, 
                and ensures geographic dispersal of economic activity 
                across all regions of the United States; and
                    (i) Federal incentives and any amendments to 
                Federal procurement regulations that may be necessary 
                to attract and retain investments in critical goods and 
                materials and other essential goods and materials, as 
                defined in sections 6(b) and 6(d) of this order, 
                including any new programs that could encourage both 
                domestic and foreign investment in critical goods and 
                materials.

                Sec. 6. Definitions. For purposes of this order:

                    (a) ``Agency'' means any authority of the United 
                States that is an ``agency'' under 44 U.S.C. 3502(1), 
                other than those considered to be independent 
                regulatory agencies, as defined in 44 U.S.C. 3502(5). 
                ``Agency'' also means any component of the Executive 
                Office of the President.
                    (b) ``Critical goods and materials'' means goods 
                and raw materials currently defined under statute or 
                regulation as ``critical'' materials, technologies, or 
                infrastructure.
                    (c) ``Critical minerals'' has the meaning given to 
                that term in Executive Order 13953 of September 30, 
                2020 (Addressing the Threat to the Domestic Supply 
                Chain From Reliance on Critical Minerals From Foreign 
                Adversaries and Supporting the Domestic Mining and 
                Processing Industries).
                    (d) ``Other essential goods and materials'' means 
                goods and materials that are essential to national and 
                economic security, emergency preparedness, or to 
                advance the policy set forth in section 1 of this 
                order, but not included within the definition of 
                ``critical goods and materials.''
                    (e) ``Supply chain,'' when used with reference to 
                minerals, includes the exploration, mining, 
                concentration, separation, alloying, recycling, and 
                reprocessing of minerals.

                Sec. 7. General Provisions. (a) Nothing in this order 
                shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or 
the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget 
relating to budgetary, administrative, or legislative proposals.

                    (b) This order shall be implemented consistent with 
                applicable law and subject to the availability of 
                appropriations.

[[Page 11854]]

                    (c) This order is not intended to, and does not, 
                create any right or benefit, substantive or procedural, 
                enforceable at law or in equity by any party against 
                the United States, its departments, agencies, or 
                entities, its officers, employees, or agents, or any 
                other person.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    February 24, 2021.

[FR Doc. 2021-04280
Filed 2-26-21; 8:45 am]
Billing code 3295-F1-P