Presidential Determination Waives DPA Requirements to Expand Domestic Petroleum Capacity
ANALYSIS · October 28, 2026
Slug: presidential-determination-pursuant-section-303-defense-production
Package note: This analyzes Presidential Determination No. 2027-01, signed October 22, 2026 and published in the Federal Register on October 28, 2026 (91 FR 68011). It formally determines that domestic petroleum production, refining, and logistics capacity are essential to national defense under section 303 of the Defense Production Act of 1950, as amended. The determination waives multiple procedural requirements of the Act and directs the Secretary of War to make purchases, commitments, and provide financial support; it does not itself appropriate funds, approve specific projects, or set spending limits.
Primary sources
- Federal Register Documents (October 28, 2026): https://www.federalregister.gov/documents/2026/10/28/2026-22052/presidential-determination-pursuant-to-section-303-of-the-defense-production-act-of-1950-as-amended
The President issued a determination under section 303 of the Defense Production Act citing the national energy emergency declared in Executive Order 14156 on January 20, 2025. The document finds that U.S. petroleum production, refining, and logistics capacity—including exploration, pipelines, storage, and marine terminals—are “industrial resources, materials, or critical technology items essential to the national defense.” It states that industry cannot provide these capabilities in a timely manner because of “constrained financing, long lead times, permitting and infrastructure bottlenecks, and supply chain limitations.” The determination concludes that action under section 303 is the most cost-effective method and waives the requirements of section 303(a)(1) through (a)(6) to expand that capacity.
Core Tension
The memorandum frames the action as an urgent national defense necessity required to protect Armed Forces, industry, and infrastructure from disruption. In practice it only makes the legal findings and waiver needed to unlock DPA tools; it contains no dollar amounts, project lists, timelines, or new appropriations. The text identifies four specific obstacles—constrained financing, long lead times, permitting bottlenecks, and supply chain limitations—but leaves open exactly which projects will receive purchases, commitments, or financial support and how much funding will be used.
What the Presidential Determination does
| Section / element | Verified text / effect |
|---|---|
| Legal basis | Issued pursuant to section 303 of the Defense Production Act of 1950, as amended (50 U.S.C. 4533) |
| Three required findings | (1) domestic petroleum production, refining, and logistics capacity “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… in a timely manner” due to listed bottlenecks; (3) “purchases, purchase commitments, financial support… or other action pursuant to section 303 of the Act are the most cost-effective, expedient, and practical alternative methods” |
| Waiver | Pursuant to section 303(a)(7), waives the requirements of section 303(a)(1)-(a)(6) “for the purpose of expanding such capability” |
| Direction to agency | Directs the Secretary of War to “implement this determination, including making necessary purchases, commitments, and financial instruments to enable these projects” |
| Supersession clause | “Any provision of previous memoranda, proclamations, and Executive Orders that is inconsistent with this determination is superseded to the extent of such inconsistency” |
Claims check
| Claim | Assessment | Receipt |
|---|---|---|
| Domestic petroleum production, refining, and logistics capacity are essential to national defense | Verified as the President’s stated finding | The determination explicitly states these capacities “are industrial resources, materials, or critical technology items essential to the national defense” |
| Industry cannot provide the needed capacity in a timely manner without presidential action | Verified as the President’s stated finding | The text lists “constrained financing, long lead times, permitting and infrastructure bottlenecks, and supply chain limitations” as reasons |
| Action under section 303 is the most cost-effective, expedient, and practical method | Verified as the President’s stated finding | The determination contains this exact finding |
| A national emergency has been declared that justifies this action | Verified (emergency declared in EO 14156) | References Executive Order 14156 of January 20, 2025, titled “Declaring a National Energy Emergency” |
Context / what to watch
- Implementation by Secretary of War: what specific purchases, commitments, or financial instruments are made and on what schedule.
- Funding levels: whether Congress appropriates or the executive branch reallocates money to support the authorized actions.
- Project selection: which facilities or infrastructure will actually receive support under the waived DPA authorities.
Reviewed and checked against the Federal Register text (91 FR 68011, FR Doc. 2026-22052) · Kelvic Report · 2026-10-28 · for /analysis/presidential-determination-pursuant-section-303-defense-production