Synthetic Fuels

This executive order halted new Defense Production Act awards for synthetic fuels, transferred existing Department of Energy synthetic fuels projects to the newly operational Synthetic Fuels Corporation upon board approval, governed remaining uncommitted Energy Security Reserve funds under 1981 appropriations law, and revoked EO 12242 while preserving its loan guarantees.

47 FR 5993

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Impact dates

Date TBD
Projects transfer to Corporation upon majority Board vote
Date TBD
Unexpended balances transfer upon project transfer

Key directives

Halt new DPA Section 305 awards for synthetic fuels purchases and financial assistance
Transfer DOE synthetic fuels projects to Corporation upon majority Board vote
Transfer unexpended balances for transferred projects to Corporation
Make remaining uncommitted Energy Security Reserve funds available per PL 97-12 for Energy Security Act Title I
Revoke EO 12242
Preserve EO 12242 loan guarantees in full force

Who is ordered

Secretary of Energy · Department of Energy

Timeline

Immediate

No new awards or commitments under DPA Section 305
Revocation of EO 12242 (except loan guarantees)
Transfer mechanism activated for DOE projects to Corporation

Near term (90d)

Board of Directors votes on specific project transfers
Unexpended balances transfer upon project approval

Long term

Complete operational transition of synthetic fuels responsibilities from DOE to Corporation
Ongoing administration of preserved loan guarantees from EO 12242

Risks & tensions

Board vote requirement creates uncertainty on which projects transfer and when
Split responsibility: DOE retains some functions while Corporation takes others, risking coordination gaps
Loan guarantee preservation creates ongoing federal liability without new oversight mechanism from revoked EO
Vague on what 'initiated by DOE' encompasses—preliminary vs. advanced projects unclear