President Donald Trump recently issued an executive order titled Strengthening the Reliability and Security of the United States Electric Grid, which aims to bolster electric grid reliability and address the national energy emergency declared by the administration earlier this year. Citing challenges driven by a surge in demand from data centers and manufacturing, the order directs the US secretary of energy to take emergency actions to ensure reliable supplies of energy from “all available power generation sources.”
To meet these objectives, the order directs the secretary of energy to leverage the Department of Energy’s (DOE’s) emergency authority under Section 202(c) of the Federal Power Act (FPA). Section 202(c) authorizes the secretary of energy to order the temporary connections of facilities, and generation, delivery, interchange, or transmission of electricity, during times of war or when the United States is experiencing an energy emergency.
Although the DOE has used its Section 202(c) authority sparingly in recent years—primarily in response to extreme weather events in discrete geographical areas—the executive order seeks a broader application of these emergency powers.
First, the order directs the secretary of energy to “streamline, systemize, and expedite” the DOE’s processes for issuing emergency orders under Section 202(c), including the review and approval of applications by electric generation resources seeking to operate at maximum capacity.
Second, within 30 days of the issuance of the executive order (by May 8, 2025), the secretary of energy must develop a uniform methodology for analyzing current and anticipated reserve margins for all regions of the bulk power system regulated by the Federal Energy Regulatory Commission (FERC)—i.e., the continental US outside of the Electric Reliability Council of Texas interconnection. This methodology must account for varied grid conditions and operating scenarios based on historic events and accredit generation resources based on their historical performance during such scenarios. The DOE must publish the methodology within 90 days of the date of the executive order (July 7, 2025).
Third, the secretary of energy must establish a process to assess the methodology described above on a regular basis as well as a protocol to identify which generation resources within a region are critical to system reliability. The protocol must (1) include all mechanisms available under applicable law (including FPA Section 202(c)) to ensure any generation resource identified as critical is appropriately retained as an available generation resource; and (2) prevent an identified generation resource greater than 50 megawatts from leaving the bulk-power system or converting the source of fuel of such generation resource if the conversion would result in a net reduction in accredited generating capacity.
While the details of the DOE’s implementation remain to be seen, the executive order highlights the importance the administration has placed on baseload generating resources to meet domestic energy needs. Both the reserve margin methodology and the protocol to identify “critical” resources will likely place an emphasis on using generation with “redundant fuel supplies that are capable of extended operations” to ensure reliability.
The executive order was also issued alongside two related actions that aim to establish clean coal technology and coal-fired electricity generation as a priority and “essential to our national and economic security.” As a result, coal generation close to retirement may be a focus of the secretary’s implementation.
We continue to expect additional executive, regulatory, and legislative action in the coming months to implement the president’s energy dominance policy objectives. We will provide additional analysis and guidance as these policies become available. Please visit Morgan Lewis’s energy blogs Power & Pipes (FERC, CFTC, DOE, State) and Up and Atom (Nuclear) for updates on the administration’s energy policies.
Visit our US Administration Policies and Priorities resource center and subscribe to our mailing list for the latest on programming, guidance, and current legal and business developments.
If you have any questions or would like more information on the issues discussed in this LawFlash, please contact any of the following: