This Presidential Determination directs the Secretary of Energy to use the authority granted under Section 303 of the Defense Production Act of 1950 to expand domestic natural gas transmission, processing, storage, and Liquefied Natural Gas (LNG) capacity.
The action is framed as essential for national defense and ensuring allied energy security against threats posed by hostile foreign powers utilizing energy reliance as a weapon.
The President specifically waives certain DPA requirements, finding that industry cannot meet these critical infrastructure needs in a timely manner due to financing, permitting, and construction delays.
Arguments For
Enhancing National Security: Expanding natural gas and LNG capacity is deemed critical for sustaining United States defense operations and bolstering the energy security of international allies, directly countering threats from hostile foreign actors who weaponize energy reliance.
Addressing Market Failures/Bottlenecks: The determination explicitly finds that private industry cannot timely provide necessary infrastructure (pipelines, storage, export facilities) due to financing constraints, long lead times, permitting delays, and infrastructure bottlenecks, thus justifying executive intervention.
Expedient Response: Utilizing Section 303 of the Defense Production Act (DPA) is identified as the most cost-effective, expedient, and practical method to rapidly overcome shortfalls that would severely impair national defense capability.
Implementing Prior Policy: The action directly supports the findings of the January 20, 2025, Executive Order 14156 (Declaring a National Energy Emergency), which recognized the danger of reliance on foreign energy sources.
Arguments Against
Broad Use of DPA Authority: Critics might argue that using the Defense Production Act (DPA) to expand commercial energy infrastructure, even for perceived security needs, represents an overreach of executive authority beyond core defense industrial mobilization.
Potential Market Distortion: Direct government intervention via purchases, loan guarantees, or financial support for specific energy projects could distort energy markets, potentially favoring certain technologies or companies over others not selected for federal backing.
Implementation Complexity and Delays: While the determination seeks to expedite projects, overcoming permitting delays and infrastructure bottlenecks often involves significant regulatory hurdles and local opposition that DPA authority alone may not swiftly resolve.
Focus on Specific Energy Sources: Directing resources toward expanding natural gas and LNG capacity may be seen as undermining transitions to other forms of renewable energy, potentially locking in fossil fuel infrastructure for the long term.
MEMORANDUM FOR THE SECRETARY OF ENERGY
SUBJECT: Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950, as Amended, on Natural Gas Transmission, Processing, Storage, and Liquefied Natural Gas Capacity
This segment identifies the recipient of the memorandum as the Secretary of Energy and specifies the subject matter.
The subject is the President's formal finding, made under Section 303 of the Defense Production Act (DPA) of 1950, regarding the necessity of expanding the nation's capacity for handling natural gas and liquefied natural gas (LNG).
On January 20, 2025, I issued Executive Order 14156 (Declaring a National Energy Emergency), under the National Emergencies Act. That order found that hostile foreign actors have weaponized America’s reliance on foreign energy and used it to cause dramatic swings in international commodity markets, leaving the United States and its allies dangerously exposed. It emphasized that America must develop its capacity to supply reliable, diversified, and affordable energy to international allies and partners to compete with hostile foreign powers, strengthen relations with allies and partners, and support international peace and security.
The President references a prior Executive Order (14156) issued on January 20, 2025, which declared a national energy emergency.
This context establishes that foreign actors are allegedly using energy dependence to create market instability, which puts the U.S. and its allies at risk.
The stated goal is to build domestic energy supply capacity to improve competition, reinforce alliances, and maintain global stability.
Consistent with that declaration, I find that ensuring sufficient natural gas and liquefied natural gas (LNG) capacity is critical to sustaining United States defense operations and ensuring allied energy security. Inadequate pipelines, processing, storage, or natural gas and LNG export capacity would leave the United States and its partners dangerously exposed in times of crisis.
This finding links the national emergency declaration directly to the need for abundant natural gas and LNG infrastructure.
The President concludes that insufficient capacity in transportation (pipelines), conversion (processing), holding reserves (storage), or shipping (LNG export) creates unacceptable vulnerabilities for both American defense readiness and allied energy supplies during emergencies.
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:
Acting under constitutional power and specifically citing the Defense Production Act (DPA), the President initiates the formal determination process under section 303(a)(5) of that law.
(1) natural gas and LNG capacity, including gathering and transmission pipelines, compression, processing plants, underground storage, LNG liquefaction, storage and marine load, export facilities, and critical distribution infrastructure, are industrial resources, materials, or critical technology items essential to the national defense;
The first finding designates all elements of the natural gas and LNG infrastructure—such as pipelines, compressors, processing plants, storage areas, and export terminals—as critical industrial resources necessary for 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, long-lead equipment and construction schedules, permitting delays, and infrastructure bottlenecks; and
The second finding establishes the justification for using the DPA: the private sector cannot develop the required infrastructure quickly enough.
The President cites specific industrial barriers, including difficulties securing financing, the long time frames for ordering equipment and construction, delays from permitting processes, and existing infrastructure limitations.
(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.
The third finding asserts that using the DPA instruments—such as direct purchases, purchase guarantees, or providing financial assistance for capability development—is the superior method available.
This approach is deemed the most practical, fastest, and least expensive way to achieve the necessary capacity expansion compared to other alternatives.
I have declared a national emergency under Executive Order 14156, and I further determine that action to expand domestic natural gas transmission, processing, storage, and LNG 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.
Reiterating the declaration of a national emergency, the President concludes that expanding this specific energy capacity is mandatory to prevent a shortage that would seriously weaken the nation's defense.
Consequently, the President invokes authority under DPA Section 303(a)(7) to waive compliance with all preceding subsections (a)(1) through (a)(6) solely for the purpose of proceeding with this infrastructure expansion.
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 direct order to put this determination into effect.
Implementation requires executing necessary contracts, making financial commitments, and providing financial tools to move the identified projects forward.
The Secretary must also formally publish this determination in the Federal Register, which provides public notice.
This final segment contains the signature of President Donald J. Trump, confirming the official nature of the document.
The concluding lines provide metadata concerning the online posting of the determination.
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