Executive Order 13603
Vol. 77, No. 56
Thursday, March 22, 2012
Executive Order 13603 of March 16, 2012
National Defense Resources Preparedness
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Defense Production Act of 1950, as amended (50 U.S.C. App. 2061 etseq.), and section 301 of title 3, United States Code, and as Commander in Chief of the Armed Forces of the United States, it is hereby ordered as follows:
PART I—PURPOSE, POLICY, AND IMPLEMENTATION
Section 101. Purpose. This order delegates authorities and addresses national defense resource policies and programs under the Defense Production Act of 1950, as amended (the ‘‘Act’’).
Sec. 102. Policy. The United States must have an industrial and technological base capable of meeting national defense requirements and capable of contrib- uting to the technological superiority of its national defense equipment in peacetime and in times of national emergency. The domestic industrial and technological base is the foundation for national defense preparedness. The authorities provided in the Act shall be used to strengthen this base and to ensure it is capable of responding to the national defense needs of the United States.
Sec. 103. General Functions. Executive departments and agencies (agencies) responsible for plans and programs relating to national defense (as defined in section 801(j) of this order), or for resources and services needed to support such plans and programs, shall:
(a) identify requirements for the full spectrum of emergencies,including essential military and civilian demand;
(b) assess on an ongoing basis the capability of the domesticindustrial and technological base to satisfy requirements inpeacetime and times of national emergency, specifically evaluatingthe availability of the most critical resource and productionsources, including subcontractors and suppliers, materials, skilledlabor, and professional and technical personnel;
(c) be prepared, in the event of a potential threat to the security of the United States, to take actions necessary to ensure the availability of adequate resources and production capability, including services and critical technology, for national defense requirements;
(d) improve the efficiency and responsiveness of the domesticindustrial base to support national defense requirements; and
(e) foster cooperation between the defense and commercial sectorsfor research and development and for acquisition of materials,services, compo- nents, and equipment to enhance industrial baseefficiency and responsive- ness.
Sec. 104. Implementation. (a) The National Security Council and Homeland Security Council, in conjunction with the National Economic Council, shall serve as the integrated policymaking forum for consideration and formulation of national defense resource preparedness policy and shall make rec- ommendationsto the President on the use of authorities under the Act.
(b) The Secretary of Homeland Security shall:
(1) advise the President on issues of national defense resource preparedness and on the use of the authorities and functionsdelegated by this order;
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(2) provide for the central coordination of the plans and programs incident to authorities and functions delegated under this order, and provide guid- ance to agencies assigned functions under this order, developed in con- sultation with such agencies; and
(3) report to the President periodicallyconcerning all program activities conductedpursuant to this order.
(c) The Defense Production Act Committee, described in section 701 of this order, shall:
(1) in a manner consistent with section 2(b) of the Act, 50 U.S.C. App. 2062(b), advise the President through the Assistant to the President and National Security Advisor, the Assistant to the President for Homeland Security and Counterterrorism, and the Assistant to the President for Eco- nomicPolicy on the effective use of the authorities under the Act; and
(2) prepare and coordinate an annual report to the Congress pursuant to section 722(d) of the Act, 50 U.S.C. App. 2171(d).
(d) The Secretary of Commerce, in cooperation with the Secretary of Defense, the Secretary of Homeland Security, and other agencies, shall:
(1) analyze potential effects of nationalemergencies on actual productioncapability, taking into account the entireproduction system, including shortages ofresources, and develop recommendedpreparedness measures to strengthencapabilities for production increases innational emergencies; and
(2) perform industry analyses to assesscapabilities of the industrial base to supportthe national defense, and develop policyrecommendations to improve theinternational competitiveness of specificdomestic industries and their abilities tomeet national defense program needs.
PART II—PRIORITIES AND ALLOCATIONS
Sec. 201. Priorities and Allocations Authorities. (a) The authority of the President conferred by section 101 of the Act, 50 U.S.C. App. 2071, to require acceptance and priority performance of contracts or orders (other than contracts of employment) to promote the national defense over perform- ance of any other contracts or orders, and to allocate materials, services, and facilities as deemed necessary or appropriate to promote the national defense, is delegated to the following agency heads:
(1) the Secretary of Agriculture with respect to food resources, food re- source facilities, livestock resources, veterinary resources, plant health resources, and the domestic distribution of farm equipment and commercial fertilizer;
(2) the Secretary of Energy with respect to all forms of energy;
(3) the Secretary of Health and Human Services with respect to health resources;
(4) the Secretary of Transportation withrespect to all forms of civil trans- portation;
(5) the Secretary of Defense with respect to water resources; and
(6) the Secretary of Commerce with respect to all other materials, services, and facilities, including construction materials.
(b) The Secretary of each agency delegated authority under subsection
(a) of this section (resource departments) shall plan for and issue regulations to prioritize and allocate resources and establish standards and procedures by which the authority shall be used to promote the national defense, under both emergency and non-emergency conditions. Each Secretary shall authorize the heads of other agencies, as appropriate, to place priority ratings on contracts and orders for materials, services, and facilities needed in support of programs approved under section 202 of this order.
(c) Each resource department shall act, as necessary and appropriate, upon requests for special priorities assistance, as defined by section 801(l)
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of this order, in a time frame consistent with the urgency of the need at hand. In situations where there are competing program requirements for limited resources, the resource department shall consult with the Sec- retary who made the required determination under section 202 of this order. Such Secretary shall coordinate with and identify for the resource department which program requirements to prioritize on the basis of operational urgency. In situations involving more than one Secretary making such a required determination under section 202 of this order, the Secretaries shall coordinate with and identify for the resource department which program requirements should receive priority on the basis of operational urgency.
(d) If agreement cannot be reached between two such Secretaries, then the issue shall be referred to the President through the Assistant to the President and National Security Advisor and the Assistant to the President for Homeland Security and Counterterrorism.
(e) The Secretary of each resourcedepartment, when necessary, shall make thefinding required under section 101(b) of theAct, 50 U.S.C. App. 2071(b). This findingshall be submitted for the President’sapproval through the Assistant to thePresident and National Security Advisor andthe Assistant to the President for HomelandSecurity and Counterterrorism. Upon suchapproval, the Secretary of the resourcedepartment that made the finding may usethe authority of section 101(a) of the Act, 50U.S.C. App. 2071(a), to control the generaldistribution of any material (includingapplicable services) in the civilian market.
Sec. 202. Determinations. Except as provided in section 201(e) of this order, the authority delegated by section 201 of this order may be used only to support programs that have been determined in writing as necessary or appropriate to promote the national defense:
(a) by the Secretary of Defense with respect to military production and construction, military assistance to foreign nations, military use of civil transportation, stockpiles managed by the Department of Defense, space, and directly relatedactivities;
(b) by the Secretary of Energy with respect to energy production and construction, distribution and use, and directly related activities; and
(c) by the Secretary of Homeland Security with respect to all other national defense programs, including civil defense and continuity of Government.
Sec. 203. Maximizing Domestic Energy Supplies. The authorities of the Presi- dent under section 101(c)(1)–(2) of the Act, 50 U.S.C. App. 2071(c)(1)– (2), are delegated to the Secretary of Commerce, with the exception that the authority to make findings that materials (including equipment), services, and facilities are critical and essential, as described in section 101(c)(2)(A) of the Act, 50 U.S.C. App. 2071(c)(2)(A), is delegated to the Secretary of Energy.
Sec. 204. Chemical and Biological Warfare. The authority of the President conferred by section 104(b) of the Act, 50 U.S.C. App. 2074(b), is delegated to the Secretary of Defense. This authority may not be further delegated by the Secretary.
PART III—EXPANSION OF PRODUCTIVE CAPACITY AND SUPPLY
Sec. 301. Loan Guarantees. (a) To reduce current or projected shortfalls of resources, critical technology items, or materials essential for the national defense, the head of each agency engaged in procurement for the national defense, as defined in section 801(h) of this order, is authorized pursuant to section 301 of the Act, 50 U.S.C. App. 2091, to guarantee loans by private institutions.
(b) Each guaranteeing agency is designated and authorized to: (1) act as fiscal agent in the making of its own guarantee contracts and in otherwise carrying out the purposes of section 301 of the Act; and (2) contract with any Federal Reserve B...