Sec. 3. Department of Commerce assessment and strategy to counter threats to critical supply chains
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In accordance with Executive Order No. 14017 (86 Fed. Reg. 11849; relating to America’s supply chains), the Assistant Secretary shall, not later than 1 year after the date of the enactment of this Act, develop a strategy for the Department of Commerce to support the resilience, diversity, security, and strength of critical supply chains. The strategy required under subsection
(a)shall include a plan to do the following: Support sufficient access to critical goods by mitigating critical supply chain vulnerabilities, including critical supply chains concentrated in countries of concern. Collaborate with other relevant Federal agencies to assist allies or key international partner nations build capacity for manufacturing critical goods. Initiate and support translation research in engineering and manufacturing by entering into contracts or making other arrangements (including grants, awards, cooperative agreements, loans, and other forms of assistance) to advance that research and to assess the impact of that research on the economic well-being, climate, environment, public health, and national security of the United States. Recover from supply chain shocks. Identify, in coordination with other relevant Federal agencies, actions relating to critical supply chains with which the United States might— raise living standards; increase employment opportunities; and improve response to supply chain shocks. Protect against supply chain shocks from countries of concern relating to critical supply chains. Provide recommendations to effectuate the strategy under this section, including recommendations to— increase visibility into the networks and capabilities of suppliers and domestic manufacturers; identify industry best practices; evaluate how diverse supplier networks, multi-platform and multi-region production capabilities and sources, and integrated global and regional critical supply chains can— enhance the resilience of critical industries and manufacturing capabilities in the United States; support and create jobs in the United States; and support access of the United States to critical goods during a supply chain shock; identify and mitigate risks, including— the financial and operational risks of a critical supply chain; significant vulnerabilities to critical supply chain shocks including extreme weather events, cyberattacks, pandemic and biological threats, terrorist and geopolitical attacks, and other emergencies; and exposure to gaps and vulnerabilities in domestic capacity or capabilities and sources of imports needed to sustain critical industries and critical supply chains; identify enterprise resource planning systems that are— compatible across critical supply chain tiers; and affordable for small and medium-sized businesses; understand the total cost of ownership, total value contribution, and other best practices that encourage strategic partnerships throughout critical supply chains; identify opportunities to work with allies or key international partner nations of the United States to build more resilient critical industry supply chains and mitigate risks; identify opportunities to reuse and recycle critical goods, including raw materials, to increase the resilience of critical supply chains; strengthen the financial and operational health of small and medium-sized businesses in critical supply chains of the United States and countries that are allies or key international partner nations of the United States to mitigate risks and ensure diverse and competitive supplier markets that are less vulnerable to failure; coordinate with countries on— sourcing critical goods, industrial equipment, and manufacturing technology; and developing, sustaining, and expanding production and availability of critical goods, industrial equipment, and manufacturing technology during a supply chain shock; and identify such other services as the Assistant Secretary determines necessary. Not later than 1 year after the date of enactment of this Act, the Assistant Secretary shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate, and publish on the website of the Department of Commerce, a report containing the strategy developed under subsection (a). Not less than once every 4 years after the date on which the strategy is submitted under paragraph (1), the Assistant Secretary shall submit to Congress and publish on the website of the Department of Commerce an update to such strategy. The report submitted under paragraph (1), and any update submitted under paragraph (2), shall be submitted in unclassified form and may include a classified annex. Not later than 1 year after the date of enactment of this Act, and not later than once every four years thereafter, the Assistant Secretary, in coordination with the head of each relevant Federal agency and relevant private sector entities, labor organizations, States and political subdivisions thereof, and territorial and Tribal governments, shall submit to the relevant committees of Congress and post on the website of the Assistant Secretary a report on critical supply chain resilience and domestic manufacturing (in this subsection referred to as the report ) to strengthen, improve, and preserve the resilience, diversity, security, and strength of critical supply chains. The assessment shall include the following: An identification of— industries that are critical for the national security of the United States, considering the key technology focus areas and critical infrastructure; supply chains and critical goods designated under section 4(d); other goods, supplies, and services that are critical to the crisis preparedness of the United States; substitutes for critical goods, industrial equipment, and manufacturing technology; and countries that are critical to addressing critical supply chain weaknesses and vulnerabilities. A description of the matters identified and evaluated pursuant to section 4(b)(1), including— the manufacturing base and critical supply chains in the United States, including the manufacturing base and critical supply chains for— industrial equipment; critical goods, including raw materials, semiconductors, and rare earth permanent magnets, that are essential to the production of technologies and supplies for critical industries; and manufacturing technology; and the ability of the United States to— maintain readiness with respect to preparing for and responding to supply chain shocks; and in response to a supply chain shock— surge production in critical industries; surge production of critical goods and industrial equipment; and maintain access to critical goods, industrial equipment, and manufacturing technology. An assessment and description of— demand and supply of critical goods, industrial equipment, and manufacturing technology; production of critical goods, industrial equipment, and manufacturing technology by domestic manufacturers; the capability and capacity of domestic manufacturers and manufacturers in countries that are allies or key international partner nations of the United States to manufacture critical goods, industrial equipment, and manufacturing technology; and how supply chain shocks could affect rural, Tribal, and underserved communities. An identification of defense, intelligence, homeland, economic, domestic labor supply, natural, geopolitical, or other contingencies and other supply chain shocks that may disrupt, strain, compromise, or eliminate critical supply chains. An assessment of— the resilience and capacity of the manufacturing base, critical supply chains, and workforce of the United States and allies and key international partner nations that can sustain critical industries through a supply chain shock; the flexible manufacturing capacity and capabilities available in the United States in the case of a supply chain shock; the effect innovation has on domestic manufacturing; and any single points of failure in the critical supply chains described in clause (i). With respect to countries that are allies or key international partner nations of the United States, a review of the sourcing of critical goods, industrial equipment, and manufacturing technology associated with critical industries from those countries. An assessment of policies, rules, and regulations that impact the operating costs of domestic manufacturers and inhibit the ability for domestic manufacturers to compete with global competitors. The report may not include— critical supply chain information that is not aggregated; or confidential business information of a private sector entity. The head of any Federal agency with jurisdiction over any critical supply chain shall collaborate with the Assistant Secretary and provide any information, data, or assistance that the Assistant Secretary determines to be necessary for developing the report. Such assistance may include the use of services, equipment, personnel, and facilities of other Federal agencies with or without reimbursement upon agreement between the Secretary and the head of such other Federal agency. The report, and any update submitted thereafter, shall be submitted in unclassified form and may include a classified annex. The Assistant Secretary shall provide for a period of public comment and review in developing the report.
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- 86 FR 11849
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Sec. 3
Department of Commerce assessment and strategy to counter threats to critical supply chains
Fed. Reg.86 FR 11849
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