Presidential Documents Federal Register Vol 86 No 38 Monday March 1 2021 Presidential Documents 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 competi tion and other conditions can reduce critical manufacturing capacity and the availability and integrity of critical goods products and services Resil ient American supply chains will revitalize and rebuild domestic manufac turing capacity maintain America’s competitive edge in research and devel opment 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 appro priate 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 appro priate agencies shall submit a report identifying risks in the semiconductor manufacturing and advanced packaging supply chains and policy rec ommendations 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 VerDate Sep 11 2014 16 13 Feb 26 2021 Jkt 253001 PO 00000 Frm 00001 Fmt 4790 Sfmt 4790 E FR FM 01MRE0 SGM 01MRE0 11850 Federal Register Vol 86 No 38 Monday March 1 2021 Presidential Documents high-capacity batteries including electric-vehicle batteries and policy rec ommendations 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 ingredi ents 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 pro tective 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 deter mined 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 informa tion 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 VerDate Sep 11 2014 16 13 Feb 26 2021 Jkt 253001 PO 00000 Frm 00002 Fmt 4790 Sfmt 4790 E FR FM 01MRE0 SGM 01MRE0 Federal Register Vol 86 No 38 Monday March 1 2021 Presidential Documents 11851 v The Secretary of Transportation in consultation with the heads of appropriate agencies shall submit a report on supply chains for the trans portation industrial base as determined by the Secretary of Transportation vi The Secretary of Agriculture in consultation with the heads of appro priate 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 mate rials 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 com promise 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 Regula tion 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 VerDate Sep 11 2014 16 13 Feb 26 2021 Jkt 253001 PO 00000 Frm 00003 Fmt 4790 Sfmt 4790 E FR FM 01MRE0 SGM 01MRE0 11852 Federal Register Vol 86 No 38 Monday March 1 2021 Presidential Documents 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 fol lowing 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 con cerning a steps to strengthen the resilience of America’s supply chains b reforms needed to make supply chain analyses and actions more effec tive including statutory regulatory procedural and institutional design VerDate Sep 11 2014 16 13 Feb 26 2021 Jkt 253001 PO 00000 Frm 00004 Fmt 4790 Sfmt 4790 E FR FM 01MRE0 SGM 01MRE0 Federal Register Vol 86 No 38 Monday March 1 2021 Presidential Documents 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 envi ronmental impacts encourages economic growth in communities of color and economically distressed areas and ensures geographic dispersal of eco nomic activity across all regions of the United States and i Federal incentives and any amendments to Federal procurement regula tions 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 re processing 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 VerDate Sep 11 2014 16 13 Feb 26 2021 Jkt 253001 PO 00000 Frm 00005 Fmt 4790 Sfmt 4790 E FR FM 01MRE0 SGM 01MRE0 11854 Federal Register Vol 86 No 38 Monday March 1 2021 Presidential Documents 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 THE WHITE HOUSE February 24 2021 FR Doc 2021–04280 Filed 2–26–21 8 45 am Billing code 3295–F1–P VerDate Sep 11 2014 16 13 Feb 26 2021 Jkt 253001 PO 00000 Frm 00006 Fmt 4790 Sfmt 4790 E FR FM 01MRE0 SGM 01MRE0 BIDEN EPS GPH