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Trump Officials Open 13 Million Acres for Coal, Pledge $625 Million to Keep Plants Running

Officials frame the move as essential to meet surging electricity demand from AI data centers.

Overview

  • The Energy Department announced $625 million for coal-fired power, including $350 million to recommission or modernize units, $175 million for rural projects, $50 million for wastewater systems, and $25 million each for dual-firing retrofits and natural gas cofiring development.
  • The Interior Department said it will open about 13.1 million federal acres to coal leasing, cut the federal royalty rate to 7% from 12.5%, and streamline approvals, with leases advancing in Montana, North Dakota, Wyoming, Utah and Alabama.
  • The EPA outlined a proposal to extend by five years compliance deadlines under the 2024 effluent limitations guidelines for steam-electric plants and will seek input on potential changes to the Clean Air Act’s Regional Haze rule with a 60-day comment window.
  • Administration leaders argued coal is needed to ensure reliability and U.S. competitiveness as electricity use climbs with AI and data centers.
  • Environmental groups denounced the measures as subsidies for polluting, uneconomic plants, while energy analysts questioned whether policy changes can overcome long-term market trends favoring natural gas and renewables.