New Bill Bars Feds From Using Emergency Powers for Environmental Protection, Mandates Funding for Fossil Fuels

The “Strategic Resources Non-discrimination Act” is a short bill that makes two very specific, high-impact changes to the Defense Production Act (DPA)—the 1950s-era law the President uses to prioritize contracts and fund production during national emergencies.

The DPA: Your Emergency Production Cheat Code

First, let’s quickly cover what the DPA does. Think of the DPA as the federal government’s emergency toolkit. It allows the President to force companies to prioritize federal orders (like making ventilators during a pandemic or specific metals for defense) and provide financial support (loans, grants, contracts) to shore up critical domestic supply chains. This bill focuses on how the DPA applies to “domestic energy supplies."

Cutting the Environmental Cord

Currently, the DPA gives the President authority to prioritize contracts for domestic energy supplies. This bill amends that authority, stating explicitly that the power cannot be used for “purposes of environmental protection” (SEC. 2. Domestic Energy Supplies Exception).

What does this mean in practice? If, say, the government wanted to use the DPA to prioritize contracts for solar panel components or battery storage systems specifically to meet climate goals or reduce pollution in certain areas, this bill would block that move. The executive branch loses a tool for using emergency production powers to address environmental crises, even if those crises (like extreme heat or resource scarcity) are strategic threats to the nation. It essentially ensures that the DPA’s energy powers remain strictly focused on supply volume, not environmental stewardship.

Mandatory Funding for Fossil Fuels

The second change is even more direct. The bill adds a new section to the DPA prohibiting the President from denying financial support (under DPA sections 301, 302, or 303—the main funding mechanisms) to any person solely because they are engaged in the “fossil fuel energy sector” (SEC. 2. Prohibition on Discrimination Based on Energy Source).

This covers a wide range of activities: exploration, development, production, transportation, and sale of fossil fuels. Essentially, the bill acts as regulatory armor for the fossil fuel industry. If the federal government decided to strategically shift DPA funding away from fossil fuel infrastructure and toward renewable energy projects—perhaps viewing renewables as a more secure, long-term strategic resource—this bill would prevent that denial of funding eligibility. It ensures that fossil fuel companies remain fully eligible for federal financial support under the DPA, regardless of any broader strategic shift toward cleaner energy sources.

The Real-World Impact

For everyday people, this bill locks in a commitment to the status quo regarding energy production and federal support. If you’re a worker in a solar manufacturing plant, this bill makes it harder for the government to use its emergency powers to boost your industry over traditional energy sources for environmental reasons. If you’re concerned about air quality or climate change, this bill removes a potential lever the government could use to accelerate the transition to cleaner energy during a crisis or to shore up environmentally friendly infrastructure.

By restricting the government’s ability to prioritize contracts for environmental protection and mandating continued financial eligibility for fossil fuel entities, the bill ensures that the DPA’s vast resources and priority mechanisms will be directed without prejudice toward the fossil fuel sector, regardless of executive branch environmental priorities or strategic goals.