President Donald Trump expanded the Interior Department’s authority over energy production and distribution under the Defense Production Act (DPA). The change could increase the department’s role in federal efforts to restart offshore oil production in California.
The executive order, issued September 8, 2026, gives the secretaries of the Interior and Energy departments overlapping authority to use certain DPA powers for energy resources within their respective jurisdictions. Each secretary may exercise the delegated authority independently.
Interior gains independent energy authority
The DPA allows the federal government to prioritize contracts and allocate materials, services, and facilities considered necessary for national defense.
Executive Order 14427 amends a 2012 order that previously assigned several energy-related responsibilities principally to the Energy Department. It adds the Interior secretary to provisions covering energy production, construction, distribution, use, and related activities.
The order also gives the Interior, Commerce, and Energy secretaries independent authority under DPA provisions concerning the allocation of materials, services, and facilities.
Disputes between the Interior and Energy secretaries involving energy would generally go first to the National Energy Dominance Council. Matters involving national-defense infrastructure or military operations would also involve the National Security Council and coordination with the Department of War.
Order follows federal intervention in Sable restart
The change comes as the Trump administration seeks to help Sable restore production from the Santa Ynez Unit and transport oil through its pipeline system along the Santa Barbara County coast.
Energy Secretary Chris Wright directed Sable in March to restore the Santa Ynez Unit and pipeline system, invoking DPA authority delegated under an earlier executive order.
The Energy Department said the project could produce approximately 50,000 barrels of oil per day and reduce California’s dependence on imported crude. It characterized the pipeline system as important to energy security and military readiness.
Sable’s restart effort remains the subject of disputes involving state and local regulators, environmental organizations, and the federal government. Those disputes include questions about pipeline oversight, permit requirements, and the extent of federal authority over infrastructure connected to offshore leases.
The Interior Department oversees offshore oil and gas operations through agencies including the Bureau of Ocean Energy Management and the Bureau of Safety and Environmental Enforcement. Giving the Interior secretary independent Defense Production Act authority could provide another potential basis for federal action affecting offshore production or related infrastructure.
For more information, see the CEJ Sable Offshore issue hub.