This Presidential Memorandum directs the Secretary of Energy to utilize the authority granted under Section 303 of the Defense Production Act of 1950 to secure and expand coal supply chains and baseload power generation capacity.
The action is predicated on a finding, previously established in Executive Order 14156, that inadequate energy supply poses an unusual and extraordinary threat to the Nation’s economy and national security, asserting that coal infrastructure is crucial for maintaining grid stability, supporting defense operations, and meeting the high energy demands of emerging technologies.
The document explicitly determines that industry cannot meet these needs in a timely manner due to market barriers and consequently waives several DPA requirements to allow for immediate purchases, commitments, and financial support measures.
Arguments For
National Security and Defense Readiness: The action asserts that reliable coal supply chains and baseload power generation are indispensable for national defense, supporting defense installations and industrial expansion required for emerging technologies like AI.
Grid Resilience: The President finds that coal-fired baseload power provides crucial stability to the power grid, which cannot be immediately replaced by other sources, thus mitigating risks posed by hostile foreign actors.
Addressing Market Failures: The determination argues that without Presidential intervention under the Defense Production Act (DPA), private industry cannot address financing constraints, regulatory delays, or high maintenance costs associated with coal infrastructure promptly enough to meet national defense needs.
Efficiency and Expediency: The action concludes that using the DPA, including purchases and financial support, is the most cost-effective and expedient method to avert a critical shortfall in industrial resources essential for national defense.
Arguments Against
Economic and Environmental Trade-offs: Prioritizing coal infrastructure investment may conflict with existing climate goals or renewable energy mandates, potentially leading to higher long-term environmental costs and obstructing sustainable energy transitions.
Legal and Procedural Overreach: The action waiving requirements (Section 303(a)(1)-(a)(6)) of the DPA to expand coal capability may face scrutiny regarding whether the explicit findings of an imminent severe impairment to national defense were sufficiently met to justify such a broad waiver.
Market Distortion: Direct government intervention through purchases and financial instruments under the DPA can distort energy markets, potentially leading to subsidized operations that are not economically viable without ongoing federal support.
Dependence on Fossil Fuels: Relying on or expanding coal infrastructure entrenches dependence on fossil fuels, potentially leaving the nation vulnerable to future market volatility associated with fuel sourcing and increasing exposure to future regulatory changes concerning carbon emissions.
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 Coal Supply Chains and Baseload Power Generation Capacity
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 capacity 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 reliable coal supply chains and baseload power generation capacity is essential to United States national defense. Coal mining and logistics, terminals, stockpile, and power generation facilities provide indispensable resilience to our power grids that cannot be replaced. Without sufficient coal-fired baseload power, the United States will lack the stable electricity required to support defense installations, industrial expansion, and the high-energy demands of emerging technologies, such as artificial intelligence.
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) coal supply chains and baseload power generation capacity, including coal mining, rail and barge logistics, export and domestic terminals, generating unit availability and life-extension work, on-site stockpiles, and associated reliability updates, are industrial resources, materials, or 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 item in a timely manner due to financing constraints, regulatory delays, long-lead maintenance, expensive and bespoke repair cycles, 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 coal supply chain capacity and baseload generation availability 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
The post Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950, as Amended, on Coal Supply Chains and Baseload Power Generation Capacity appeared first on The White House.
The document begins with navigation elements from the White House website, indicating the issuance is a formal Presidential Action.
The directive is a Memorandum addressed to the Secretary of Energy concerning a specific Presidential Determination under Section 303 of the Defense Production Act of 1950, focusing on coal supply chains and baseload power generation capacity.
It references a preceding Executive Order (14156) from January 20, 2025, which declared a National Energy Emergency due to inadequate energy capacity threatening the nation's economy and national security against hostile foreign actors.
Consistent with that declaration, I find that ensuring reliable coal supply chains and baseload power generation capacity is essential to United States national defense. Coal mining and logistics, terminals, stockpile, and power generation facilities provide indispensable resilience to our power grids that cannot be replaced. Without sufficient coal-fired baseload power, the United States will lack the stable electricity required to support defense installations, industrial expansion, and the high-energy demands of emerging technologies, such as artificial intelligence.
The memorandum explicitly states that reliable coal infrastructure is crucial for national defense.
This includes all aspects of the coal lifecycle: mining, transportation (rail and barge logistics), terminals, stockpiles, and power generation facilities.
The basis for this urgency is the irreplaceable resilience coal-fired baseload power provides to the electrical grid.
A lack of this stable power is cited as hindering support for defense installations, industrial growth, and new high-demand technologies like artificial intelligence (AI).
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) coal supply chains and baseload power generation capacity, including coal mining, rail and barge logistics, export and domestic terminals, generating unit availability and life-extension work, on-site stockpiles, and associated reliability updates, are industrial resources, materials, or 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 item in a timely manner due to financing constraints, regulatory delays, long-lead maintenance, expensive and bespoke repair cycles, 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.
Invoking Presidential authority under the Defense Production Act (DPA), the President makes three specific determinations necessary to trigger DPA action under section 303(a)(5).
First, coal infrastructure elements are officially designated as industrial resources or critical technology items essential to national defense.
Second, the determination asserts that the private sector cannot, in a timely fashion, provide these capabilities because of hurdles like financing issues, regulatory delays, long maintenance schedules, and market barriers.
Third, the memorandum concludes that direct government intervention via purchases, purchase commitments, or financial support under the DPA is the most efficient and practical solution to address the identified need.
I have declared a national emergency under Executive Order 14156, and I further determine that action to expand coal supply chain capacity and baseload generation availability 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.
This paragraph affirms the link between the declared national emergency and the necessity for immediate action regarding coal capacity expansion to prevent a severe impairment of national defense capacity.
Crucially, the President uses authority under section 303(a)(7) of the DPA to waive requirements stipulated in sections 303(a)(1) through (a)(6).
This waiver allows the government to bypass standard procedures for implementing DPA expansion efforts related to coal supply and generation.
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
The post Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950, as Amended, on Coal Supply Chains and Baseload Power Generation Capacity appeared first on The White House.
The Secretary of Energy receives explicit authorization and direction to carry out the determination.
This includes the implementation of supporting measures like necessary purchases, commitments, and the provision of financial instruments to facilitate the required coal projects.
The memorandum concludes by ordering the official publication of this determination in the Federal Register, making it a public and legally binding directive, followed by the dated signature of Donald J. Trump and website boilerplate text.
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