[Federal Register Volume 85, Number 214 (Wednesday, November 4, 2020)]
[Presidential Documents]
[Pages 70039-70042]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-24601]


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  Federal Register / Vol. 85, No. 214 / Wednesday, November 4, 2020 / 
Presidential Documents  

[[Page 70039]]


                Memorandum of October 31, 2020

                
Protecting Jobs, Economic Opportunities, and 
                National Security for All Americans by Ensuring 
                Appropriate Support of Innovative Technologies for 
                Using Our Domestic Natural Resources

                Memorandum for the Secretary of State[,] the Secretary 
                of the Treasury[,] the Secretary of Defense[,] the 
                Attorney General[,] the Secretary of the Interior[,] 
                the Secretary of Agriculture[,] the Secretary of 
                Commerce[,] the Secretary of Labor[,] the Secretary of 
                Transportation[,] the Secretary of Energy[,] the United 
                States Trade Representative[,] the Administrator of the 
                Environmental Protection Agency[,] the Director of the 
                Office of Management and Budget[,] the Assistant to the 
                President for National Security Affairs[,] the 
                Assistant to the President for Economic Policy[,] the 
                Chairman of the Council of Economic Advisers[,] the 
                Director of the Office of Science and Technology 
                Policy[,] the Chairman of the Council on Environmental 
                Quality[, and] the Administrator of the Office of 
                Information and Regulatory Affairs

                By the authority vested in me as President by the 
                Constitution and the laws of the United States of 
                America, I hereby direct the following:

                Section 1. Purpose. This memorandum sets forth policies 
                related to protecting American jobs, economic 
                opportunities, and national security by ensuring 
                appropriate support of hydraulic fracturing and other 
                innovative technologies for the use of domestic natural 
                resources, including energy resources. In support of 
                these policies, this memorandum directs certain 
                officials to assess the potential effects of efforts to 
                ban or restrict the use of such technologies.

                Sec. 2. Background. Our country has been favored with 
                abundant land, wildlife, and natural resources. 
                Americans have rightly seen this abundance as both an 
                opportunity and a responsibility. Our blessings have 
                rightly been a great source of national pride and 
                gratitude. As we enjoy these bounties, we are also 
                bound by a responsibility of stewardship to use, 
                protect, and preserve them for future generations.

                Among the greatest of our blessings are our energy 
                resources, which all too often we take for granted. Our 
                Nation has untold potential to deliver energy to 
                provide us with the necessities--light, heat, cold, 
                food, and water, to say nothing of modern 
                telecommunications--for our daily lives at home and at 
                work, and our travel from place to place. Reliable, 
                affordable energy is essential for running our homes, 
                businesses, farms, factories, health care facilities, 
                and schools, and is critical to every sector of our 
                economy, including our energy-intensive and trade-
                exposed industries. Access to dependable, inexpensive 
                sources of energy is a cornerstone of our well-being, 
                of our economic strength and global competitiveness, 
                and of our national security.

                One of the great success stories of our time has been 
                the development of hydraulic fracturing (often known as 
                ``fracking'') and other technologies to facilitate the 
                extraction of natural resources from the earth. 
                Hydraulic fracturing is a process that provides access 
                to reservoirs of natural gas and petroleum by opening 
                rocks deep underground. When coupled with horizontal 
                drilling and other new technologies, fracking has 
                opened up new sources of inexpensive, reliable, 
                abundant energy for our country. It has also produced 
                jobs and economic opportunities for many Americans.

[[Page 70040]]

                In a report issued in October 2019, the Council of 
                Economic Advisers (CEA) estimated that by lowering 
                energy prices, the use of fracking and other 
                innovations had saved United States consumers $203 
                billion per year, or $2,500 in annual savings for a 
                family of four. These savings disproportionately 
                benefit low-income households, which spend a larger 
                share of their income on energy bills, representing 6.8 
                percent of income for the poorest fifth of households 
                compared to 1.3 percent for the richest fifth of 
                households. The CEA estimated that greater productivity 
                had reduced the domestic price of natural gas by 63 
                percent as of 2018; had led to a 45 percent decrease in 
                the wholesale price of electricity; and had reduced the 
                global price of oil by 10 percent as of 2019.

                The transformation wrought by technologies such as 
                fracking is not only the result of America's natural 
                abundance and Americans' capacity for scientific 
                discovery and practical invention. It is also a 
                testament to our Nation's greatest resource: our 
                hardworking men and women. Energy workers have 
                dedicated their lives to an industry that is essential 
                to the modern world, and their labors have demonstrated 
                their talent, perseverance, and courage. Even in the 
                midst of this unprecedented pandemic, essential energy 
                workers have continued to ensure that our Nation has 
                the energy that it needs to survive and to flourish. We 
                owe these workers our gratitude. We also owe them 
                appropriate respect and support for their careers, 
                their livelihoods, and their families.

                It should be emphasized that technologies such as 
                fracking--when used lawfully and responsibly, with 
                appropriate attention to environmental, health, and 
                safety protections--are vital not just to our domestic 
                prosperity but also to our national security. Shortly 
                after I entered office, I issued Executive Order 13783 
                of March 28, 2017 (Promoting Energy Independence and 
                Economic Growth), which directed an immediate review of 
                all agency actions that potentially burdened the 
                development or use of domestic energy resources. That 
                order also rescinded certain actions of the previous 
                Administration that, in my judgment, were not 
                consistent with the national interest and the Nation's 
                geopolitical security. As a result of new technologies 
                and my Administration's continued push for energy 
                independence, our country recently became a net energy 
                exporter for the first time since 1952, as well as the 
                leading producer of oil and natural gas in the world. 
                We are no longer beholden to foreign countries upon 
                which we had depended for decades for the survival of 
                our way of life. This achievement is a great 
                accomplishment for our country, which should not be 
                taken for granted.

                Now that we have achieved a dominant position in energy 
                production, powerful voices in the United States, 
                echoed by countries such as China and Russia, are 
                clamoring for policies that would undermine that 
                position, forgetting the very real costs and risks of 
                energy dependence. Some of these voices call for using 
                legislative or regulatory mechanisms to ban, or sharply 
                restrict, the use of fracking and other technologies. 
                In my view, such proposals are not responsible and 
                would be harmful to the economic and national security 
                of the United States.

                Sec. 3. Policy. It is the policy of the Federal 
                Government to aggressively protect and enhance American 
                jobs, economic opportunities, and national security for 
                all Americans by ensuring appropriate support of 
                innovative technologies for using our domestic natural 
                resources more efficiently and responsibly, including 
                environmental protection and restoration technologies. 
                Before taking actions that may jeopardize such 
                innovation, responsible officials should carefully 
                consider the impacts on American citizens.

                Sec. 4. Assessing the Domestic and Economic Impacts of 
                Undermining Hydraulic Fracturing and Other 
                Technologies. (a) Within 70 days of the date of this 
                memorandum, the Secretary of Energy, in consultation 
                with the United States Trade Representative, shall 
                submit a report to the President, through the Assistant 
                to the President for Economic Policy (who shall act in 
                coordination with the Assistant to the President for 
                National Security Affairs), assessing:

[[Page 70041]]

(i) the economic impacts of prohibiting, or sharply restricting, the use of 
hydraulic fracturing and other technologies, including the following:

  (A) any loss of jobs, wages, benefits, and other economic opportunities 
by Americans who work in or are indirectly benefited by the energy industry 
and other industries (including mining for sand and other minerals);

  (B) any increases in energy prices (including the prices of gasoline, 
electricity, heating, and air conditioning) for Americans (including senior 
citizens and other persons on fixed incomes) and businesses;

  (C) any decreases in property values and in the royalties and other 
revenues that are currently available to private property owners; and

  (D) any decreases in tax revenues, impact fees, royalties, and other 
revenues currently available to the Federal Government, to State and local 
governments, and to civic institutions (including public schools, trade and 
vocational schools, community colleges, and other educational and training 
institutions; hospitals; and medical clinics);

(ii) the trade impacts of prohibiting, or sharply restricting, the use of 
hydraulic fracturing and other technologies, including impacts on United 
States exports of liquefied natural gas (LNG) and other energy products, as 
well as exports of other commodities that may be affected by increases in 
transportation costs; and

(iii) such other domestic or economic impacts as the Secretary of Energy 
deems appropriate.

                    (b) In preparing the report described in subsection 
                (a) of this section, the Secretary of Energy and the 
                United States Trade Representative shall consult with 
                the Secretary of the Treasury, the Secretary of the 
                Interior, the Secretary of Agriculture, the Secretary 
                of Commerce, the Secretary of Labor, the Secretary of 
                Transportation, the Administrator of the Environmental 
                Protection Agency, the Chairman of CEA, the Chairman of 
                the Council on Environmental Quality, and such other 
                officials as the Secretary of Energy and the United 
                States Trade Representative deem appropriate.

                Sec. 5. Assessing the National Security Impacts of 
                Undermining Hydraulic Fracturing and Other 
                Technologies. Within 70 days of the date of this 
                memorandum, the Secretary of Energy shall submit a 
                report to the President, through the Assistant to the 
                President for National Security Affairs (who shall act 
                in coordination with the Assistant to the President for 
                Economic Policy), assessing the national security 
                impacts of prohibiting, or sharply restricting, the use 
                of hydraulic fracturing and other technologies. This 
                report shall include an assessment of potential impacts 
                on Russian and Chinese energy production, consumption, 
                and trade activities, and on the energy security of 
                United States allies, that may be attributable to 
                changes in United States exports of LNG and other 
                energy products. In preparing this report, the 
                Secretary of Energy shall consult with the Secretary of 
                State, the Secretary of Defense, the United States 
                Trade Representative, and such other officials as the 
                Secretary of Energy deems appropriate. This report may 
                be combined, as appropriate, with the report required 
                by section 4 of this memorandum, in which case the 
                combined report shall be submitted to the President 
                through the Assistant to the President for National 
                Security Affairs and the Assistant to the President for 
                Economic Policy.

                Sec. 6. Reinforcing Executive Order 13211. (a) 
                Executive Order 13211 of May 18, 2001 (Actions 
                Concerning Regulations That Significantly Affect Energy 
                Supply, Distribution, or Use) provides that agencies 
                ``shall prepare'' detailed Statements of Energy Effects 
                when undertaking certain agency actions that are likely 
                to have a significant adverse impact on the supply, 
                distribution, or use of energy. Such Statements ``shall 
                describe'' ``any adverse effects on energy supply, 
                distribution, or use (including a shortfall in supply, 
                price increases, and increased use of foreign supplies) 
                should the proposal be implemented'' and ``reasonable 
                alternatives to the action with adverse energy effects 
                and the expected effects of such alternatives on energy 
                supply,

[[Page 70042]]

                distribution, and use.'' In order to enhance compliance 
                with Executive Order 13211, I direct the Director of 
                the Office of Management and Budget (OMB), through the 
                Administrator of the Office of Information and 
                Regulatory Affairs (OIRA), to review the record of 
                compliance with that order by agencies (as defined in 
                that order) and to provide new guidance, as 
                appropriate, concerning the implementation of and 
                compliance with that order.

                    (b) Within 30 days of the date of this memorandum, 
                the Director of OMB shall, as appropriate, identify for 
                the President, through the Assistant to the President 
                for Economic Policy (who shall act in coordination with 
                the Assistant to the President for National Security 
                Affairs), agencies on which the Administrator of OIRA 
                intends to focus attention to ensure robust compliance 
                with Executive Order 13211.

                Sec. 7. Definition. For purposes of this memorandum, 
                the terms ``hydraulic fracturing'' and ``fracking'' 
                shall have the meaning assigned to ``hydraulic 
                fracturing'' in 40 C.F.R. 60.5430.

                Sec. 8. General Provisions. (a) Nothing in this 
                memorandum 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 memorandum shall be implemented consistent 
                with applicable law and subject to the availability of 
                appropriations.
                    (c) This memorandum 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.
                    (d) The Secretary of Energy is hereby authorized 
                and directed to publish this memorandum in the Federal 
                Register.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    Washington, October 31, 2020

[FR Doc. 2020-24601
Filed 11-3-20; 8:45 am]
Billing code 6450-01-P