Egypt Daily News – On Tuesday, U.S. President Donald Trump announced that he would activate the Defense Production Act to support the coal industry, a move that could see federal funds used to revive a declining sector in the United States.
Trump signed executive orders aimed at increasing domestic coal production, reducing regulations targeting coal, and promoting its use, all in an effort to boost local energy production.
Speaking at the White House in front of a group of coal workers, Trump called the move a “historic step to help American workers, miners, families, and consumers,” adding, “All the plants that were closed will be reopened if they are new enough, or they will be demolished and entirely new plants will be built. We will bring miners back to work.”
Trump emphasized that the administration is working to ensure “that coal investments cannot be undone by any future president,” and said he would direct the Energy Secretary “to invest in the next generation of coal.”
He also mentioned plans to direct the Department of Justice to identify and confront states that hinder coal mining operations and to pinpoint any “unconstitutional regulations” that block coal mining at both the local and federal levels.
To encourage companies to return to the sector, Trump confirmed he had granted immediate tax exemptions to 47 companies that operate coal-fired power plants.
Boosting Coal Power Production
In March, Trump stated that he sought to counter China’s economic advantage gained from electricity derived from coal, by mandating his administration to increase coal-based energy production.
Trump posted on social media: “I am directing my administration to immediately begin producing energy using beautiful, clean coal!”
Energy Secretary Chris Wright had earlier mentioned that the administration is working on a “market-based” plan to limit the closure of coal-fired power plants in the U.S.
Classifying Coal as a “Critical Mineral” and Expediting Exports
In addition, according to Bloomberg, a White House official said the new executive orders “ensure that the U.S. has returned to the federal land coal mining rights market and direct coal to be classified as a critical mineral.”
Other measures include speeding up U.S. coal exports and related technologies.
Trump presented these actions as essential to maintaining U.S. leadership in the artificial intelligence race, stating that the country needs to double its electricity production to maintain its competitive edge.
He added: “We need more than double the amount of energy and electricity we currently have,” promising to obtain approvals for energy projects “at a very fast pace.”
Currently, coal makes up about 15% of electricity generation in the U.S., compared to more than 50% in 2000, according to the U.S. Energy Information Administration.
Future Coal Plant Closures
Approximately 120 coal-fired power plants are set to close over the next five years, partly due to environmental regulations that have made operating them uneconomical, according to the lobby group “America’s Power,” which represents utility and mining companies like Peabody Energy and Core Natural Resources.
The Environmental Protection Agency (EPA) reported last month that it plans to review regulations set by the previous administration of President Joe Biden, which limited mercury pollution and greenhouse gas emissions, a move that could help keep some coal plants in operation.
Strengthening the National Grid
In tandem with the coal-related executive orders, Trump signed another directive aimed at strengthening the U.S. electrical grid.
This order directs the Department of Energy to examine U.S. energy grids and use its authority to ensure grid reliability, according to Bloomberg sources.
This decision could pave the way for the government to use emergency powers to support struggling coal and nuclear plants.
