ExecutiveOrdersEO
EO 12346Executive OrderReagan · R Quiet signal

Executive Order 12346

Synthetic Fuels

Energy & EnvironmentEnergy & EnvironmentFederal WorkforceFederal WorkforceEconomy & LaborEconomy & Labor

In simple terms

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
No PDF available for this document.

Record & deadlines

  1. Signed

    Signed by the President

  2. FR published

    Published in the Federal Register · 47 FR 5993

  3. Projects transfer to Corporation upon majority Board vote

  4. 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

Prior policy

  • revokeEO 12242

Related orders

  • revokesEO 12242

What to expect

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
Executive Order 12346: Synthetic Fuels · Executive Orders