This Presidential Determination directs the Secretary of Energy to use authority under Section 303 of the Defense Production Act (DPA) of 1950 to expedite the development, manufacturing, and deployment of large-scale energy and energy-related infrastructure.
Citing a prior declaration of a national energy emergency due to inadequate domestic energy supply posing a threat to national security, the President finds that market risks and regulatory delays prevent the timely meeting of crucial industrial capacity needs.
Consequently, the President determines that expanding this domestic capability is essential for national defense and waives certain procedural requirements of the DPA to enable immediate purchasing, commitments, and financial support for these projects.
Arguments For
This action establishes that domestic energy infrastructure development is essential to national defense, providing a legal basis for prioritizing projects critical to national security under the Defense Production Act (DPA).
Invoking the DPA allows the executive branch to bypass typical financing risks, regulatory hurdles, and market barriers that are slowing down necessary energy infrastructure buildout, thus expediting deployment.
Waiving standard DPA requirements (Sections 303(a)(1)-(a)(6)) streamlines the process, enabling quicker deployment of funds, contracts, and resources needed to avert an expected shortfall in critical energy industrial capacity.
By authorizing the Secretary of Energy to make necessary purchases, commitments, and provide financial instruments, the determination directly tackles perceived inadequacies in current energy production, refining, and generation capacity.
Arguments Against
Utilizing DPA Section 303 for energy infrastructure development may lead to market distortion by favoring certain projects over others, potentially crowding out private investment that might occur under normal market conditions.
Bypassing standard DPA procedural requirements (the waiver) could reduce transparency and public accountability for the allocation of federal funds and contracts for major infrastructure projects.
The determination relies on a declaration of a national energy emergency (Executive Order 14156), which critics might argue overstates the immediate threat to national security posed by current energy supply levels.
Government intervention through the DPA, especially concerning financing and site acquisition, raises concerns about federal overreach into complex energy markets and the potential for inefficient allocation of resources.
Presidential Actions
MEMORANDUM FOR THE SECRETARY OF ENERGY
SUBJECT: Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950, as Amended, on Development, Manufacturing, and Deployment of Large-Scale Energy and Energy‑Related Infrastructure
On January 20, 2025, I issued Executive Order 14156 (Declaring a National Energy Emergency), under the National Emergencies Act. That order found that America’s inadequate energy production, transportation, refining, and generation constitutes an unusual and extraordinary threat to the Nation’s economy, national security, and foreign policy. It emphasized that our Nation’s current inadequate and intermittent energy supply leaves us vulnerable to hostile foreign actors and poses an imminent and growing threat to the United States’ prosperity and national security.
Consistent with that declaration, I find that ensuring the domestic capability for development, manufacturing, and deployment of large-scale energy and energy-related infrastructure is essential to United States national defense, yet due to financing risks, regulatory delays, and market barriers, these cannot be met in full under existing market conditions.
Therefore, by the authority vested in me as President by the Constitution and the laws of the United States of America, including section 303 of the Defense Production Act of 1950, as amended (the “Act”) (50 U.S.C. 4533), I hereby determine, pursuant to section 303(a)(5) of the Act, that:
(1) development, manufacturing, and deployment of large-scale energy and energy-related infrastructure, including engineering, site acquisition and preparation, permitting, early-stage risk mitigation financing instruments, domestic manufacturing capacity, and enabling infrastructure, are industrial resources, materials, and critical technology items essential to the national defense;
(2) without Presidential action under section 303 of the Act, United States industry cannot reasonably be expected to provide these capabilities for the needed industrial resource, material, or critical technology items in a timely manner due to financing risks, regulatory delays, and market barriers; and
(3) purchases, purchase commitments, financial support for the development of production capabilities, or other action pursuant to section 303 of the Act are the most cost-effective, expedient, and practical alternative methods for meeting this need.
I have declared a national emergency under Executive Order 14156, and I further determine that action to expand the domestic capability to undertake development, manufacturing, and deployment of large-scale energy and energy-related infrastructure is necessary to avert an industrial resource or critical technology item shortfall that would severely impair national defense capability. Therefore, pursuant to section 303(a)(7) of the Act, I waive the requirements of section 303(a)(1)-(a)(6) of the Act for the purpose of expanding such capability.
You are authorized and directed to implement this determination, including making necessary purchases, commitments, and financial instruments to enable these projects, and to publish this determination in the Federal Register.
DONALD J. TRUMP
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The memorandum is addressed to the Secretary of Energy concerning a Presidential Determination under Section 303 of the Defense Production Act (DPA).
The subject identifies the action as relating to the development, manufacturing, and deployment of large-scale energy and energy-related infrastructure.
The memorandum references Executive Order 14156 from January 20, 2025, which declared a National Energy Emergency.
This prior order established that substandard energy production, transportation, refining, and generation posed an extraordinary threat to the nation's economy, national security, and foreign policy, specifically noting vulnerability to hostile foreign actors.
Building on that declaration, the President finds that establishing domestic capability for large-scale energy infrastructure is vital for national defense.
However, current market conditions, specifically financing risks, regulatory delays, and market barriers, prevent this capability from being fully met.
Acting under the authority of the DPA, the President formally determines three points under section 303(a)(5).
First, the development and deployment of this infrastructure, including engineering, site acquisition, permitting, and financing instruments, constitute items essential to national defense.
Second, without Presidential action under Section 303, U.S. industry cannot meet these needs in a timely manner due to the identified market and regulatory obstacles.
Third, direct government action—purchases, commitments, or financial support under the DPA—is deemed the most effective, swift, and practical alternative.
The President further determines that expanding domestic energy capacity is necessary to prevent a critical shortfall that would severely impair national defense capability.
Pursuant to section 303(a)(7), the President exercises the authority to waive requirements of sections 303(a)(1) through (a)(6) to facilitate this expansion.
Finally, the Secretary of Energy receives authorization and direction to implement this determination, which includes executing necessary purchases, commitments, and financial instruments to support these projects.
The Secretary is also directed to publish this determination in the Federal Register.
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