The Trump administration approved 76 coal-related permits in more than a year of efforts to revive the flagging fuel and execute an agenda of “energy dominance.” His latest attempt includes tapping Defense Production Act funding to expand the industry.
“Last year we prevented 17 GW of coal-powered electricity from going offline. That’s enough power for about 13 million homes, and at a very low price. It’s the lowest price,” Trump said of coal resources.
But critics say the opposite is true. “This move, along with the President blocking the retirement of old coal plants that are too costly to operate, is making most Americans poorer,” Jenkins said. “This is a total misuse of the Defense Production Act, a giant giftwrapped payout to subsidize and prop up a flailing industry that can no longer compete in the free market.”
The coal funding is “another example of Trump ignoring the affordability crisis,” Tyson Slocum, director of Public Citizen’s energy program, said in a statement. “Abusing emergency authorities to justify subsidies for coal is a waste of taxpayer dollars and a clear giveaway to an absurdly outdated, expensive and dirty fossil fuel.”
DOE said it plans to use up to $425 million in Defense Production Act Title III funds to support a dozen coal-plant projects and $75 million for the West Gateway Terminal Project, to operate a rail-served marine export terminal. The coal projects include:
- $19 million for Arizona Electric Power Cooperative to modernize and extend the operating life the Apache Generating Station near Cochise, Arizona;
- $33 million for Duke Energy Kentucky to boost generating capacity at its East Bend Station in Boone County, Kentucky;
- $22.5 million for Oklahoma Gas and Electric’s Sooner DCS Modernization Project near Red Rock, Oklahoma, to modernize the facility’s distributed control system to maintain reliability and improve efficiency; and,
- $46.3 million for Tennessee Valley Authority to revitalize its Cumberland Fossil Plant in Stewart County, Tennessee, to meet regional demands for dispatchable power.
The West Gateway Terminal Project “will support continued growth in U.S. coal exports, improve supply chain resilience, and strengthen energy partnerships with allies throughout the Indo-Pacific region,” DOE Under Secretary of Energy Kyle Haustveit said in a statement.
In a separate announcement, DOE said four projects will receive up to $350 million under the agency’s “Restoring Reliability: Coal Recommissioning and Modernization” initiative, to add or preserve roughly 3.6 GW of coal-fired capacity.