The President issued Executive Order 14156 declaring a National Energy Emergency, citing inadequate energy production, transportation, refining, and generation capacity as threats to the nation's economy, security, and foreign policy. Several presidential determinations under section 303 of the Defense Production Act of 1950 were subsequently made to address these challenges.
The President determined that domestic petroleum production, refining, and logistics—including exploration, pipelines, storage, and marine terminals—are essential industrial resources critical to national defense. Without federal action, domestic industry cannot provide these capabilities promptly due to financial, permitting, and supply chain constraints. Purchases and financial support under the Act are considered the most practical means to meet these needs.
Similarly, coal supply chains and baseload power generation capacity—including mining, logistics, terminals, stockpiles, and power generation facilities—were identified as vital to national defense. These coal supply chains support defense installations and industrial expansion, with challenges including financing constraints and regulatory delays. Federal support is deemed necessary to avoid capacity shortfalls.
Regarding natural gas, the President found that transmission, processing, storage, and liquefied natural gas (LNG) capacity are critical to defense operations and allied energy security. Inadequate infrastructure exposes the United States and its partners to risks during crises. The determinations highlight challenges from long lead times, permitting delays, and infrastructure bottlenecks, justifying action via the Defense Production Act to expand capacity.
The development, manufacturing, and deployment of large-scale energy and energy-related infrastructure—including engineering, site acquisition, permitting, and manufacturing capacity—were also deemed essential. Due to financing and regulatory challenges, existing market conditions do not fully meet defense needs, supporting the use of federal purchases and commitments to avert supply shortages.
Finally, aging and constrained electric grid infrastructure poses threats to national defense readiness. Critical grid components and supply chains—such as transformers, transmission lines, substations, and power electronics—face risks from foreign competition, limited domestic capacity, and long production lead times. The President determined that federal action is needed to strengthen these capabilities to maintain energy independence and economic security.