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Trump Administration Moves to Revive Coal With New Leases, Lower Royalties, EPA Delay

Officials frame the move as a bid to meet electricity demand tied to artificial intelligence.

Overview

  • The Interior Department will open 13.1 million acres of federal land for coal leasing, including previously blocked areas in North Dakota, Wyoming, and Montana.
  • Federal coal royalty rates will drop from 12.5% to 7% as Interior pledges faster lease approvals, with seven applications across several states moving forward.
  • The EPA plans to propose a five-year delay to 2024 wastewater rules for power plants and will seek feedback on potential changes to the Regional Haze program, citing up to $200 million in annual consumer savings.
  • The Energy Department outlined about $625 million in support for coal, including $350 million for recommissioning and retrofits and $175 million for rural projects, with some funding details still unclear.
  • Environmental groups denounced the package over pollution and health risks, while analysts remain skeptical about coal’s long-term competitiveness against gas and renewables.