Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950, as Amended, on Domestic Petroleum Production, Refining, and Logistics Capacity
President Trump issues a Presidential Determination to the Secretary of Energy, activating Section 303 of the Defense Production Act of 1950 following a prior declaration of a National Energy Emergency.
This action officially designates domestic petroleum production, refining, and logistics capacity—including pipelines and terminals—as critical national defense resources.
The President finds that federal intervention via purchases, commitments, or financial support is necessary because industry cannot meet the required expansion timely due to financing and permitting hurdles, leading to a waiver of standard DPA procedural requirements for the purpose of immediately bolstering U.S. defense readiness.
Arguments For
Enhancing National Security and Defense Readiness: Activating the DPA ensures immediate federal action to secure the domestic petroleum supply, which is deemed essential for fueling the Armed Forces, industrial base, and critical infrastructure, thereby reducing vulnerability to hostile foreign actors.
Addressing Production Shortfalls: The memorandum argues that existing market constraints, including financing issues, long lead times, permitting delays, and supply chain limitations, prevent industry from rapidly expanding capacity, necessitating the use of federal purchasing power and financial support under the Act.
Cost-Effectiveness and Expediency: The President determined that using purchases, purchase commitments, or financial support authorized by Section 303 is the most cost-effective, expedient, and practical way to meet the identified need for expanded petroleum infrastructure compared to other alternatives.
Consistency with Prior Emergency Declaration: The action follows the declaration of a National Energy Emergency via Executive Order 14156, establishing a clear legal basis for asserting that inadequate energy capacity poses an unusual and extraordinary threat to the Nation's economy, national security, and foreign policy.
Arguments Against
Market Interference and Distortion: Direct federal intervention via the Defense Production Act could artificially inflate prices, distort normal market signals, and discourage private investment in areas deemed strategically important by the government, potentially leading to misalignment with long-term market efficiency.
Risk of Inefficient Spending: Utilizing federal contracts and financial support to directly drive production and logistics expansion carries the risk of funding projects that may become stranded assets or prove inefficient once market conditions potentially shift or the emergency declaration is lifted.
Broad Waiver of Statutory Requirements: Waiving requirements sections 303(a)(1) through (a)(6) limits standard oversight and review processes typically applied to DPA actions, potentially shielding specific contracts or decision-making from the usual levels of congressional or public scrutiny.
Focus on Petroleum Over Renewables: Prioritizing and heavily incentivizing domestic petroleum capacity through emergency powers might slow or complicate the transition toward alternative or renewable energy sources, potentially locking in long-term dependencies despite broader climate or energy transition goals.
MEMORANDUM FOR THE SECRETARY OF ENERGY
SUBJECT: Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950, as Amended, on Domestic Petroleum Production, Refining, and Logistics Capacity
This memorandum is directed specifically to the Secretary of Energy.
Its subject clearly states its purpose: to make a formal Presidential Determination under Section 303 of the Defense Production Act (DPA) regarding the domestic capacity for petroleum production, refining, and logistics.
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.
The action establishes its foundation by referencing a prior Executive Order (14156) issued on January 20, 2025, which declared a National Energy Emergency under the National Emergencies Act.
This order previously identified insufficient energy production and transportation capacity as an extraordinary threat to the U.S. economy, national security, and foreign policy, specifically citing vulnerability to foreign actors.
Consistent with that declaration, I find that ensuring resilient domestic petroleum production, refining, and logistics capacity is central to United States defense readiness. Petroleum fuels the Nation’s Armed Forces, industrial base, and crucial infrastructure. Without immediate Federal action, United States defense capabilities will remain vulnerable to disruption.
Connecting the previous emergency declaration to defense needs, the President finds that maintaining robust domestic petroleum capacity is crucial for military readiness.
The memorandum stresses that petroleum supplies power the military, industrial base, and essential infrastructure, warning that without immediate federal intervention, defense capabilities face continued risk of disruption.
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) domestic petroleum production, refining, and logistics capacity, including exploration and production, gathering and transmission pipelines, storage, and marine terminals, 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 constrained financing, long lead times, permitting and infrastructure bottlenecks, and supply chain limitations; 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 Constitution and Section 303 of the Defense Production Act, the President formally makes three required determinations under Section 303(a)(5).
First, it classifies domestic petroleum infrastructure (including production, pipelines, storage, and terminals) as essential national defense resources.
Second, it concludes that industry cannot expand these capabilities quickly enough due to financial, permitting, and supply chain limits without presidential action.
Third, it asserts that federal purchases, commitments, or financial support are the best way to meet this need quickly and efficiently.
I have declared a national emergency under Executive Order 14156, and I further determine that action to expand the domestic petroleum production, refining, and logistics capacity 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.
Since a national emergency has been declared, the President further determines immediate expansion is vital to prevent a defense-impairing shortfall in critical resources.
Consequently, the President uses the authority under Section 303(a)(7) to waive the procedural requirements outlined in subsections (a)(1) through (a)(6) of the DPA specifically to facilitate the expansion of domestic petroleum capacity.
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.
The Secretary of Energy receives authorization and a directive to carry out this determination.
Implementation includes utilizing federal resources like purchases, official commitments, and financial tools needed to advance the required petroleum projects.
The Secretary must also ensure this formal determination is officially published in the Federal Register.
This marks the formal closing of the document, signed by Donald J. Trump.
The remaining text pertains to website formatting, indicating this was posted as the official Presidential Determination on The White House website.
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