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U.S. Dept. Of Energy Kicks Off Expansive Energy Sector Supply Chain Review – Energy and Natural Resources


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U.S. Dept. Of Energy Kicks Off Expansive Energy Sector Supply Chain Review


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On November 29, 2021, the U.S. Department of Energy (DOE)
published in the Federal Register a request for information on an expansive
“energy sector supply chain review” (the “Energy
Supply Chain RFI”). Somewhat unlike earlier Trump and
Biden-Harris administration actions on energy system security and
cybersecurity—e.g., President Trump’s May 2020 bulk-power
system Executive Order 13920 (see here); DOE’s related July 2020 request for
information (see here), December 2020 prohibition order (see here), and April 2021 revocation order and
request for information (see here); the Federal Energy Regulatory
Commission’s September 2020 notice of inquiry (see here); and President Biden’s July 2021
national security memorandum (see here)—this new Energy Supply Chain RFI
devotes relatively little direct attention to electric utilities.
Rather, it seeks input from energy industry stakeholders on broad
and diverse aspects of the energy sector in general, with the
spotlight on supply chain issues. Responses are due by January 15,
2022.

The Energy Supply Chain RFI arose from President Biden’s Executive Order 14017 (America’s Supply
Chains), issued February 24, 2021, Section 4(iv) of which directs
the Secretary of Energy to “report on supply chains for the
energy sector industrial base” within a year. It “seeks
input from all stakeholders involved directly and indirectly in the
supply chains of energy, energy systems and technologies, and
energy efficiency technologies from raw materials, processed
materials, subcomponents, final products, to end-of-life material
recovery and recycling—including but not limited to U.S.
industry, researchers, academia, local governments, and civil
society.” Such input “will inform [DOE’s] efforts in
building an energy sector industrial base that is diverse,
resilient, and competitive”—characterized by
“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”—all “while meeting economic, national
security, and climate objectives.”

DOE focuses on 14 topic areas, including “solar
photovoltaic (PV); wind; electric grid, including transformers and
high-voltage direct current [transmission]; energy storage;
hydropower, including pumped storage hydropower . . . ; nuclear
energy; fuel cells and electrolyzers; semiconductors; neodymium
magnets; platinum group metals and other catalysts; and carbon
capture materials.” Noticeably absent on the generation side
are fossil fuel resources, which still comprise a significant
portion of the U.S. electricity generation mix. There are also some
“crosscutting topics” such as the “energy sector
industrial base” in general, as well as “cybersecurity
and digital components” (focusing on “firmware, software,
virtual platforms and service, data, and industrial control
systems”) and “commercialization and
competitiveness.”

DOE’s “in-depth assessment” in each topic area is
to include:

  • “Mapping the [relevant] supply chains.”

  • “Identifying existing and future threats, risks, and
    vulnerabilities.”

  • “Identifying major barriers, including financial and
    commercial, scientific, technical, regulatory and
    market.”

  • “Identifying conditions needed to help incentivize energy
    sector companies and communities to both transfer energy
    manufacturing back to and scale up supply chains in the United
    States.”

  • “Identifying areas where collaboration between the
    government and private sector, as well as between government
    entities (federal, state, local, and Tribal), is necessary to
    expand the energy industrial base, what private sector leadership
    might look like in this area, and where or how government can
    help.”

  • “Identifying specific actions to address threats, risks,
    and vulnerabilities and help build resilient supply
    chains.”

DOE asks between 5 and 12 questions on topic, including some
with multiple subparts. However, DOE makes clear that respondents
are not required to address every topic or question. As such, the
Energy Supply Chain RFI provides an opportunity for energy industry
stakeholders of all kinds to share with DOE their vision and
concerns about myriad supply chain-related issues.

As noted, responses are due by January 15, 2022. DOE encourages
online submissions to www.regulations.gov/?docket/?DOE-HQ-2021-0020,
with email submission as an alternative. Based on Executive Order
14017’s one-year deadline for the Secretary of Energy’s
report on energy sector supply chain issues, it seems that we
should expect to see such a report by late February 2022.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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