October 31, 2020
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
THE DIRECTOR OF THE OFFICE OF MANAGEMENT AND
THE ASSISTANT TO THE PRESIDENT FOR NATIONAL
THE ASSISTANT TO THE PRESIDENT FOR ECONOMIC
THE CHAIRMAN OF THE COUNCIL OF ECONOMIC ADVISERS
THE DIRECTOR OF THE OFFICE OF SCIENCE AND
THE CHAIRMAN OF THE COUNCIL ON ENVIRONMENTAL
THE ADMINISTRATOR OF THE OFFICE OF INFORMATION
AND REGULATORY AFFAIRS
SUBJECT: Defending Jobs, Financial Alternatives, and Nationwide Safety for All Individuals by Guaranteeing Applicable Help of Progressive Applied sciences for Utilizing Our Home Pure Assets
By the authority vested in me as President by the Structure and the legal guidelines of the USA of America, I hereby direct the next:
Part 1. Goal. This memorandum units forth insurance policies associated to defending American jobs, financial alternatives, and nationwide safety by guaranteeing acceptable help of hydraulic fracturing and different revolutionary applied sciences for the usage of home pure assets, together with power assets. In help of those insurance policies, this memorandum directs sure officers to evaluate the potential results of efforts to ban or prohibit the usage of such applied sciences.
Sec. 2. Background. Our nation has been favored with plentiful land, wildlife, and pure assets. Individuals have rightly seen this abundance as each a chance and a accountability. Our blessings have rightly been an important supply of nationwide satisfaction and gratitude. As we get pleasure from these bounties, we’re additionally sure by a accountability of stewardship to make use of, defend, and protect them for future generations.
Among the many biggest of our blessings are our power assets, which all too usually we take without any consideration. Our Nation has untold potential to ship power to supply us with the requirements — mild, warmth, chilly, meals, and water, to say nothing of recent telecommunications — for our day by day lives at house and at work, and our journey from place to position. Dependable, inexpensive power is crucial for operating our properties, companies, farms, factories, well being care amenities, and faculties, and is vital to each sector of our financial system, together with our energy-intensive and trade-exposed industries. Entry to reliable, cheap sources of power is a cornerstone of our well-being, of our financial power and international competitiveness, and of our nationwide safety.
One of many nice success tales of our time has been the event of hydraulic fracturing (usually generally known as “fracking”) and different applied sciences to facilitate the extraction of pure assets from the earth. Hydraulic fracturing is a course of that gives entry to reservoirs of pure gasoline and petroleum by opening rocks deep underground. When coupled with horizontal drilling and different new applied sciences, fracking has opened up new sources of cheap, dependable, plentiful power for our nation. It has additionally produced jobs and financial alternatives for a lot of Individuals.
In a report issued in October 2019, the Council of Financial Advisers (CEA) estimated that by decreasing power costs, the usage of fracking and different improvements had saved United States shoppers $203 billion per 12 months, or $2,500 in annual financial savings for a household of 4. These financial savings disproportionately profit low-income households, which spend a bigger share of their earnings on power payments, representing 6.Eight % of earnings for the poorest fifth of households in comparison with 1.Three % for the richest fifth of households. The CEA estimated that higher productiveness had decreased the home value of pure gasoline by 63 % as of 2018; had led to a 45 % lower within the wholesale value of electrical energy; and had decreased the worldwide value of oil by 10 % as of 2019.
The transformation wrought by applied sciences similar to fracking will not be solely the results of America’s pure abundance and Individuals’ capability for scientific discovery and sensible invention. It is usually a testomony to our Nation’s biggest useful resource: our hardworking women and men. Power employees have devoted their lives to an business that’s important to the trendy world, and their labors have demonstrated their expertise, perseverance, and braveness. Even within the midst of this unprecedented pandemic, important power employees have continued to make sure that our Nation has the power that it must survive and to flourish. We owe these employees our gratitude. We additionally owe them acceptable respect and help for his or her careers, their livelihoods, and their households.
It ought to be emphasised that applied sciences similar to fracking — when used lawfully and responsibly, with acceptable consideration to environmental, well being, and security protections — are very important not simply to our home prosperity but in addition to our nationwide safety. Shortly after I entered workplace, I issued Govt Order 13783 of March 28, 2017 (Selling Power Independence and Financial Progress), which directed a direct evaluation of all company actions that doubtlessly burdened the event or use of home power assets. That order additionally rescinded sure actions of the earlier Administration that, in my judgment, weren’t in keeping with the nationwide curiosity and the Nation’s geopolitical safety. Because of new applied sciences and my Administration’s continued push for power independence, our nation not too long ago turned a internet power exporter for the primary time since 1952, in addition to the main producer of oil and pure gasoline on the planet. We’re now not beholden to international nations upon which we had depended for many years for the survival of our lifestyle. This achievement is a superb accomplishment for our nation, which shouldn’t be taken without any consideration.
Now that we now have achieved a dominant place in power manufacturing, highly effective voices in the USA, echoed by nations similar to China and Russia, are clamoring for insurance policies that might undermine that place, forgetting the very actual prices and dangers of power dependence. A few of these voices name for utilizing legislative or regulatory mechanisms to ban, or sharply prohibit, the usage of fracking and different applied sciences. In my opinion, such proposals will not be accountable and could be dangerous to the financial and nationwide safety of the USA.
Sec. 3. Coverage. It’s the coverage of the Federal Authorities to aggressively defend and improve American jobs, financial alternatives, and nationwide safety for all Individuals by guaranteeing acceptable help of revolutionary applied sciences for utilizing our home pure assets extra effectively and responsibly, together with environmental safety and restoration applied sciences. Earlier than taking actions that will jeopardize such innovation, accountable officers ought to rigorously take into account the impacts on Americans.
Sec. 4. Assessing the Home and Financial Impacts of Undermining Hydraulic Fracturing and Different Applied sciences. (a) Inside 70 days of the date of this memorandum, the Secretary of Power, in session with the USA Commerce Consultant, shall submit a report back to the President, by way of the Assistant to the President for Financial Coverage (who shall act in coordination with the Assistant to the President for Nationwide Safety Affairs), assessing:
(i) the financial impacts of prohibiting, or sharply proscribing, the usage of hydraulic fracturing and different applied sciences, together with the next:
(A) any lack of jobs, wages, advantages, and different financial alternatives by Individuals who work in or are not directly benefited by the power business and different industries (together with mining for sand and different minerals);
(B) any will increase in power costs (together with the costs of gasoline, electrical energy, heating, and air-con) for Individuals (together with senior residents and different individuals on mounted incomes) and companies;
(C) any decreases in property values and within the royalties and different revenues which are presently obtainable to non-public property house owners; and
(D) any decreases in tax revenues, influence charges, royalties, and different revenues presently obtainable to the Federal Authorities, to State and native governments, and to civic establishments (together with public faculties, commerce and vocational faculties, group schools, and different instructional and coaching establishments; hospitals; and medical clinics);
(ii) the commerce impacts of prohibiting, or sharply proscribing, the usage of hydraulic fracturing and different applied sciences, together with impacts on United States exports of liquefied pure gasoline (LNG) and different power merchandise, in addition to exports of different commodities which may be affected by will increase in transportation prices; and
(iii) such different home or financial impacts because the Secretary of Power deems acceptable.
(b) In making ready the report described in subsection (a) of this part, the Secretary of Power and the USA Commerce Consultant shall seek the advice of with the Secretary of the Treasury, the Secretary of the Inside, the Secretary of Agriculture, the Secretary of Commerce, the Secretary of Labor, the Secretary of Transportation, the Administrator of the Environmental Safety Company, the Chairman of CEA, the Chairman of the Council on Environmental High quality, and such different officers because the Secretary of Power and the USA Commerce Consultant deem acceptable.
Sec. 5. Assessing the Nationwide Safety Impacts of Undermining Hydraulic Fracturing and Different Applied sciences. Inside 70 days of the date of this memorandum, the Secretary of Power shall submit a report back to the President, by way of the Assistant to the President for Nationwide Safety Affairs (who shall act in coordination with the Assistant to the President for Financial Coverage), assessing the nationwide safety impacts of prohibiting, or sharply proscribing, the usage of hydraulic fracturing and different applied sciences. This report shall embrace an evaluation of potential impacts on Russian and Chinese language power manufacturing, consumption, and commerce actions, and on the power safety of United States allies, which may be attributable to adjustments in United States exports of LNG and different power merchandise. In making ready this report, the Secretary of Power shall seek the advice of with the Secretary of State, the Secretary of Protection, the USA Commerce Consultant, and such different officers because the Secretary of Power deems acceptable. This report could also be mixed, as acceptable, with the report required by part Four of this memorandum, by which case the mixed report shall be submitted to the President by way of the Assistant to the President for Nationwide Safety Affairs and the Assistant to the President for Financial Coverage.
Sec. 6. Reinforcing Govt Order 13211. (a) Govt Order 13211 of Could 18, 2001 (Actions Regarding Laws That Considerably Have an effect on Power Provide, Distribution, or Use) gives that businesses “shall put together” detailed Statements of Power Results when endeavor sure company actions which are more likely to have a big antagonistic influence on the availability, distribution, or use of power. Such Statements “shall describe” “any antagonistic results on power provide, distribution, or use (together with a shortfall in provide, value will increase, and elevated use of international provides) ought to the proposal be applied” and “cheap options to the motion with antagonistic power results and the anticipated results of such options on power provide, distribution, and use.” With a view to improve compliance with Govt Order 13211, I direct the Director of the Workplace of Administration and Finances (OMB), by way of the Administrator of the Workplace of Info and Regulatory Affairs (OIRA), to evaluation the report of compliance with that order by businesses (as outlined in that order) and to supply new steerage, as acceptable, in regards to the implementation of and compliance with that order.
(b) Inside 30 days of the date of this memorandum, the Director of OMB shall, as acceptable, determine for the President, by way of the Assistant to the President for Financial Coverage (who shall act in coordination with the Assistant to the President for Nationwide Safety Affairs), businesses on which the Administrator of OIRA intends to focus consideration to make sure strong compliance with Govt Order 13211.
Sec. 7. Definition. For functions of this memorandum, the phrases “hydraulic fracturing” and “fracking” shall have the which means assigned to “hydraulic fracturing” in 40 C.F.R. 60.5430.
Sec. 8. Common Provisions. (a) Nothing on this memorandum shall be construed to impair or in any other case have an effect on:
(i) the authority granted by regulation to an government division or company, or the pinnacle thereof; or
(ii) the capabilities of the Director of the Workplace of Administration and Finances referring to budgetary, administrative, or legislative proposals.
(b) This memorandum shall be applied in keeping with relevant regulation and topic to the supply of appropriations.
(c) This memorandum will not be meant to, and doesn’t, create any proper or profit, substantive or procedural, enforceable at regulation or in fairness by any occasion in opposition to the USA, its departments, businesses, or entities, its officers, workers, or brokers, or another particular person.
(d) The Secretary of Power is hereby approved and directed to publish this memorandum within the Federal Register.
DONALD J. TRUMP