America's Supply Chains

• Published date: 01 March 2021
• Citation: 86 FR 11849
• Record Number: 2021-04280
• Section: Presidential Documents
• Court: Executive Office Of The President

Presidential Documents

11849

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

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

11851

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

(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

11853

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

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>