Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950, as Amended, on Transformers and Electric Power Grid Components

This presidential determination invokes the Defense Production Act to classify transformers and electric power grid components as essential to national defense, finding that U.S. industry cannot meet demand without government intervention. It waives standard DPA procedural requirements to expedite expanding domestic production capacity for these critical electrical infrastructure components.

Federal Register Open PDF 87 FR 35079

Impact dates

Date TBD
Federal Register publication

Key directives

Determine transformers and electric power grid components are industrial resources essential to national defense under DPA section 303(a)(5)
Waive requirements of DPA sections 303(a)(1) through (a)(6) to expand domestic production capability
Authorize and direct publication in Federal Register

Who is ordered

Secretary of Energy · Department of Energy

Timeline

Immediate

DPA authority invoked for transformers and grid components
Waiver of sections 303(a)(1)-(a)(6) takes effect
Secretary of Energy authorized to act under DPA

Near term (90d)

Federal Register publication of determination
Potential DPA-funded purchase commitments or contracts

Long term

Expanded domestic production capacity for transformers and grid components
Supply chain resilience improvements for electrical infrastructure

Risks & tensions

Waiver of standard DPA requirements reduces congressional and procedural oversight
Definition of 'timely manner' for industry capacity is vague and self-determined
Cost effectiveness claim (section 303(a)(5)(3)) may be contested given DPA's typically premium pricing
Potential tension with WTO obligations given DPA's domestic preference structure