Trump Invokes Defense Production Act to Boost Oil Production
The memorandum also removes certain Section 303 requirements through an emergency waiver, including ordinary congressional notification and authorization constraints.
While the memo does not specify which projects could be funded, Vice President J.D. Vance said last week that the Administration would use the Defense Production Act to expand capacity at a Delek U.S. Holdings-owned refinery in Texas.
Without taking action, the memo said, U.S. industry would be unable to provide sufficient energy services in a “timely manner due to constrained financing, long lead times, permitting and infrastructure bottlenecks, and supply chain limitations.”
Has the Defense Production Act been invoked before?
Enacted during the Korean War, the Defense Production Act was first used to expand domestic industries in critical materials, such as aluminum and titanium, for national defense.
Section 303 of the act was also used during the pandemic to fund domestic production of medicines and vaccines. Former President Joe Biden also invoked the statute to support clean energy manufacturing and supply chains, including minerals used in electric vehicle batteries and the production of of energy-efficient heat pumps and insulation.
