Three Federal Moves Aim to Boost Coal, Win the 'Artificial Intelligence Arms Race'

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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--The coal industry scored a federal government trifecta on Monday as the leaders of the Department of Energy (DOE), Department of the Interior (DOI) and the Environmental Protection Agency (EPA) announced coordinated initiatives designed to boost thermal coal production and its use in electricity generation.

In announcing the steps, the three agency heads said the efforts were designed to ensure the U.S. had adequate dispatchable electric generating capacity so that it can win what Interior Secretary Doug Burgum said was the "artificial intelligence arms race."

The announcements seek to reverse years of declining coal use in electric generation. Use of coal to generate electricity in the U.S. has fallen about 62% from its historic high in 2008, the last year of the George W. Bush presidency.

Click on the image at right to see a graphic of declining coal use among U.S. electric generators during the 21st century.

The three synchronized initiatives also seek to reverse decades of falling employment for coal miners, though two factors are behind that job loss: increased automation of the mining process and competition from other sources, including natural gas and renewable generation such as solar and wind. U.S. coal miner employment has stabilized at around 40,000 in recent years, but that is down by about 78% from the historic highs reached four decades ago.

Click on the image at right to see a graphic on U.S. coal miner employment since 1985.

The DOE, DOI and EPA efforts also seek to slow the planned retirement of coal-fired generators across the U.S. According to data tracked by IIR, over 100 gigawatts (GW) of coal-burning capacity have been retired, some prematurely, since 2012, and approximately 71 gigawatts (GW) of coal-fired generating capacity is slated for closure over the 2025-2034 period. The moves may reduce planned retirements.

Click on the image at right to see a graphic on U.S. power plant retirements since 2012, with projection to 2034.

The first announcement came from DOE Secretary Chris Wright, who said his department would make $625 million available to support coal mining companies and companies that use that coal in the production of electricity. The funding, which will be spent on a variety of measures, seeks to "expand and reinvigorate America's coal industry, boost energy production and support coal communities nationwide," the DOE said in a statement.

The DOE said it plans to distribute the $625 million in the following ways:

• $350 million for coal recommissioning and retrofits. Funded projects will demonstrate readiness to recommission or modernize coal power units and provide near-term electric power reliability and capacity.
• $175 million for rural electric generating capacity and energy affordability. These funds will go to coal power projects in rural communities that provide direct benefits of energy affordability, reliability and resiliency.
• $50 million to support the development and implementation of advanced wastewater management systems.
• $25 million for engineering and implementation of dual firing retrofits.
• $25 million for development and testing of natural gas cofiring systems that will maintain boiler efficiency and reliability when utilizing 100% natural gas.

In a second initiative, DOI chief Burgum said his department would make up to 13.1 million acres of land available for leasing for the purpose of coal mining. Some of this lease acreage was announced in decisions the agency made over the summer, but much of it appears to be new. This summer, the agency lowered coal royalties to 7%, from 12.5%, and committed nearly $725 million in funding in the just-completed fiscal-year 2025 to clean up abandoned coal mines and restore opportunity in coal mines. For more on the DOI's summer moves to boost coal, see September 23, 2025, article - Boosting the Black Rock: DOI Actions Aim to Boost Coal Production.

The third effort came from EPA Administrator Lee Zeldin, who said his agency would give electricity generators more time to comply with seven existing effluent limitations guidelines (ELGs). In addition, the agency will launch a future rulemaking to change wastewater pollution discharge limits. Those two measures are expected to save electric generators about $200 million annually, the agency estimated.

Coal interests applauded the moves while environmental and public health groups said they were a step backward. The announcements follow executive orders issued by President Donald Trump and elements of the president's tax and budget bill that was enacted over the summer.

In a statement, Michelle Bloodworth, chief executive of America's Power, a pro-coal group, said, "Today's announcements are another critical milestone in the fight to protect America's electric reliability and preserve its fleet of coal-fired power plants. Ratepayers should be grateful to President Trump and his team for their steadfast efforts to ensure that Americans have an affordable and reliable supply of electricity."

Added Rich Nolan, president of the National Mining Association, "The administration's comprehensive energy dominance strategy will ensure that our coal fleet can continue to buttress grid reliability with fuel-secure, dispatchable power."

But the moves were slammed by environmental groups, some of which suggested legal challenges would be mounted.

In a statement, Holly Bender, chief program officer at the Sierra Club, said, "The Trump administration's reckless actions ... will hurt the American people, all to prop up the aging and outdated coal industry. Coal power is now not only the dirtiest form of electricity, but it is also one of the most expensive, contributing to the rising cost of Americans' energy bills."

Over the summer, a coalition of environmental organizations released a report projecting that the Trump administration's orders to keep open some coal-fired generators that were slated to close would drive up customers' electric bills by $3 billion to $6 billion per year. That analysis was prepared Grid Strategies L.L.C. for the Sierra Club, Earthjustice, Environmental Defense Fund and the Natural Resources Defense Council.

The federal announcements came days after Trump addressed the United Nations and pledged to "provide any country with abundant, affordable energy supplies if you need them," referring to liquefied natural gas, oil and coal. The steps also came days after "Climate Week" was held in New York, and weeks before energy and climate officials from around the world gather in Brazil for the 30th annual meeting of the Congress of the Parties (COP30).

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).