Administration Unveils Coal Revival Plan

The Trump administration announced a package to revive U.S. coal, opening 13.1 million acres of federal land for coal leasing, cutting royalty rates from 12.5% to 7%, and streamlining lease approvals. The Energy Department is directing $625 million to support coal-fired generation, including $350 million for recommissioning and retrofits, $175 million for rural capacity and affordability projects, $50 million for wastewater management, $25 million for dual-firing retrofits and $25 million for natural-gas cofiring development. Lease tracts and projects were identified across Montana, North Dakota, Wyoming, Utah and Alabama. The EPA signaled regulatory relief by proposing multi-year delays and deadline extensions for Biden-era wastewater/effluent limits and said it would revisit rules including the Regional Haze program. Administration officials framed the measures as necessary to meet rising electricity demand from AI data centers, factories and broader electrification, preserve jobs and ensure “energy dominance.” Critics and analysts warned the steps could worsen climate and public-health harms, may be costlier than cleaner alternatives, and are unlikely to reverse coal’s long-term decline despite a modest recent production uptick.