Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950, as Amended, on Domestic Petroleum Production, Refining, and Logistics Capacity

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

On January 20, 2025, I enacted Executive Order 14156, declaring a National Energy Emergency under the National Emergencies Act. This order highlighted that America’s insufficient energy production, transportation, refining, and generation capacities pose a significant and exceptional threat to the nation’s economy, national security, and foreign policy. It stressed that the current inadequate and inconsistent energy supply exposes the nation to risks from hostile foreign entities and presents an immediate and escalating threat to the United States’ prosperity and security.

In line with that declaration, I recognize that maintaining a robust domestic petroleum production, refining, and logistics capacity is vital for U.S. defense readiness. Petroleum is crucial for powering the nation’s Armed Forces, industrial base, and critical infrastructure. Without prompt federal intervention, U.S. defense capabilities will remain susceptible to disruption.

Thus, by the power granted to me as President by the Constitution and U.S. laws, including section 303 of the Defense Production Act of 1950, as amended (the “Act”) (50 U.S.C. 4533), I determine, according to section 303(a)(5) of the Act, that:

(1)  Domestic petroleum production, refining, and logistics capacity, encompassing exploration, production, gathering, transmission pipelines, storage, and marine terminals, are industrial resources, materials, or critical technology items essential for national defense;

(2)  Without Presidential intervention under section 303 of the Act, U.S. industry cannot be reasonably expected to provide these capabilities for the required industrial resource, material, or critical technology item in a timely fashion due to limited financing, extended lead times, permitting and infrastructure obstacles, and supply chain constraints; and

(3)  Purchases, purchase commitments, financial support for developing production capabilities, or other actions under section 303 of the Act represent the most cost-effective, expedient, and practical solutions for addressing this need.

I have declared a national emergency via Executive Order 14156 and further determine that expanding domestic petroleum production, refining, and logistics capacity is necessary to prevent a shortfall in industrial resources or critical technology items that would gravely impair national defense capability. Therefore, under section 303(a)(7) of the Act, I waive the requirements of section 303(a)(1)-(a)(6) of the Act to facilitate such expansion.

You are authorized and instructed to carry out this determination, including making necessary purchases, commitments, and financial arrangements to support these projects, and to publish this determination in the Federal Register.

DONALD J. TRUMP