
DOE Organisation Act
1977 US law creating the Department of Energy; Section 403 authorises the Secretary to direct FERC rulemaking.
Last refreshed: 6 May 2026
How does a 1977 energy law end up shaping where data centres can connect to the US grid?
Timeline for DOE Organisation Act
FERC commits to June 2026 grid-load order
Data Centres: Boom and Backlash- What is Section 403 of the DOE Organisation Act?
- Section 403 of the Department of Energy Organisation Act authorises the Secretary of Energy to direct FERC to undertake specific rulemakings. Secretary Chris Wright used it in October 2025 to direct FERC to act on large-load grid interconnection for data centres.Source: DOE Organisation Act
- When was the Department of Energy Organisation Act passed and what does it do?
- The Department of Energy Organisation Act was signed by President Carter in 1977 (Public Law 95-91), creating the DOE as a cabinet-level agency and consolidating energy policy previously spread across multiple departments. Section 403 gives the Secretary authority to direct FERC rulemaking.Source: US National Archives
- How often does the Energy Secretary invoke Section 403 against FERC?
- Section 403 directions to FERC are rare. The Trump administration's use of it for RM26-4-000 in October 2025 is read by energy-law practitioners as a deliberate signal that AI data-centre infrastructure is an administration priority, rather than a routine energy-security matter.Source: Mayer Brown
- What is FERC Docket RM26-4-000 about?
- RM26-4-000 is the FERC rulemaking to standardise how electricity loads above 20 MW — primarily AI data centres — connect to the interstate transmission grid. It was opened by Energy Secretary Chris Wright in October 2025 under Section 403 of the DOE Organisation Act. FERC committed to act by end of June 2026.Source: FERC
Background
Section 403 of the Department of Energy Organisation Act became operationally significant in the data-centre grid-connection debate when Energy Secretary Chris Wright invoked it in October 2025 to direct FERC to act on large-load interconnection standards — Docket RM26-4-000. The provision authorises the Secretary of Energy to request FERC to undertake specific rulemakings, and sets a 30-day window for FERC to respond. FERC acknowledged the direction but moved roughly two months past the DOE's preferred 30 April 2026 deadline for the order.
The Department of Energy Organisation Act was signed into law by President Carter in 1977 (Public Law 95-91), creating the Department of Energy as a cabinet-level agency and consolidating energy policy functions previously scattered across other departments. The act also gave DOE supervisory authority over FERC's predecessor, the Federal Power Commission, and defined the relationship between the executive branch and FERC as an independent regulatory agency — including the Section 403 direction mechanism.
Section 403 is used infrequently: its invocation signals that the executive branch considers a FERC proceeding sufficiently important to place on the public record as an administration priority. The Trump administration's use of it for RM26-4-000 is read by energy-law practitioners as a deliberate signal that AI data-centre infrastructure is a national security and competitiveness priority — an alignment with FERC's eventual "quick, efficient, and legally durable" framing.