MEMORANDUM FOR THE SECRETARY OF ENERGY

SUBJECT:       Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950, as Amended, on Grid Infrastructure, Equipment, and Supply Chain 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, and infrastructure constitute an unusual and extraordinary threat to the Nation’s economy, national security, and foreign policy.  It further recognized that foreign adversaries have exploited these vulnerabilities, and that an affordable and reliable domestic supply of energy, including the infrastructure needed to generate, transmit, and deliver it, is essential to ensuring United States defense readiness, economic strength, and energy independence.

Consistent with that declaration, I find that America’s aging and constrained electric grid infrastructure poses an increasing threat to national defense.  The Nation’s capacity to design, produce, and deploy large-scale grid infrastructure, including transformers, high-voltage transmission components, advanced conductors, power electronics, substations, and grid-supporting manufacturing equipment, is dangerously limited.  These supply chains face significant risks due to foreign competition, long production lead times, and an overreliance on imported equipment.  As a result, the United States remains vulnerable in the event of war, disaster, or economic 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)  grid infrastructure and its associated upstream supply chains, including transformers, transmission lines and conductors, substations, high-voltage circuit breakers, power control electronics, protective relay systems, capacitor banks, electrical core steel, and related raw materials and manufacturing tools, 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 items in a timely manner due to limited domestic production capacity, extended procurement timelines, foreign supply dependence, and insufficient capital investment; 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 develop, manufacture, and deploy grid infrastructure and supporting industrial supply chains 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 Grid Infrastructure, Equipment, and Supply Chain Capacity appeared first on The White House.

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