On April 8, President Donald Trump signed three executive orders designed to bolster the U.S. coal industry, support coal-fired electricity generation, and override state-level initiatives perceived as obstructing domestic energy production. While the specific impacts will depend on forthcoming federal agency actions and regulatory follow-through, these orders collectively signal a major federal push to extend the operational life of coal plants, ease coal mining restrictions, and challenge certain state policies aimed at curbing fossil fuel use. The following are the key points and potential implications of the three executive orders signed this week:

Executive Order #1: Strengthening the Reliability and Security of the United States Electric Grid

1. Key Points
   • Instructs the Secretary of Energy to develop and use a uniform, nationwide methodology for assessing electricity reserve margins.
   • Accelerates emergency orders under Section 202(c) of the Federal Power Act to address rising concerns about reliability and capacity shortfalls.
   • Identifies “critical” generation resources (those deemed essential to reliability), requiring them to remain operational rather than retire or convert fuels.
2. Potential Implications
   • Delayed retirements of coal plants and other dispatchable capacity (e.g., natural gas steam units) if deemed critical for grid reliability.
   • EVA’s analysis indicates that around 10.6 GW of coal plants scheduled to retire or convert to natural gas by the end of 2027 could be extended. These plants represent approximately 40 TWh of generation (about 6% of total coal generation), 23 million tons of coal consumption, and 0.8 BCF/d of natural gas consumption equivalent. An individual plant list can be provided upon request.
   • Greater federal involvement in what have traditionally been utility or regional transmission organization decisions regarding capacity reserves.
   • Possible revisions to capacity accreditation that could reduce the reliance on renewables in meeting reserve requirements, particularly if historical performance during severe weather events is emphasized.

Executive Order #2: Reinvigorating America’s Beautiful Clean Coal Industry

1. Key Points
   • Reclassifies coal as a “mineral,” granting it benefits previously reserved for critical minerals (e.g., expedited permitting and streamlined environmental reviews).
   • Ends the federal coal leasing pause known as the “Jewell Moratorium” and directs agencies to process royalty reduction requests, lowering production costs.
   • Mandates federal agencies to identify and revise or rescind regulations that aim to transition away from coal, including rules on emissions and coal ash disposal.
   • Promotes coal exports by directing federal agencies to identify new foreign markets and reduce barriers to building or expanding export infrastructure.
2. Potential Implications
   • Extended lifespans and reduced costs for federal coal leases, potentially leading to increased production from mines on public lands.
   • Rescinding or relaxing environmental regulations on coal-fired plants may reduce compliance burdens but heighten legal and environmental scrutiny.
   • Increased export capacity, especially to Asia, if infrastructure expansions on the West Coast or elsewhere overcome state-level permitting obstacles.

Executive Order #3: Protecting American Energy From State Overreach

1. Key Points
   • Directs the Attorney General to challenge state and local policies that restrict or penalize domestic energy production, particularly those targeting greenhouse gas emissions, ESG initiatives, or carbon taxes.
   • Identifies specific state laws—such as climate liability statutes and carbon-trading programs—as potentially preempted by federal authority or unconstitutional.
   • Requires expedited federal legal action to halt enforcement of these state measures and mandates a report to the President recommending additional legislative or executive steps.
2. Potential Implications
   • Heightened federal–state tensions as the administration contests state and regional programs (e.g., RGGI, California’s carbon regulations) in court.
   • Reduced barriers to fossil fuel infrastructure if successful legal challenges weaken state permitting requirements for pipelines, export terminals, or other energy projects.
   • Uncertain outlook for climate-focused state initiatives that may now face federal preemption challenges.

Taken together, these orders underscore the administration’s intent to preserve coal-fired generation, streamline federal and state-level approvals for coal mining, and limit state actions seen as hindering domestic energy development. While coal plant retirements and shifting market forces have reduced coal’s share of U.S. power generation in recent years, these orders aim to extend coal’s operational viability and ensure that states cannot unilaterally curtail fossil fuel use. The actual impact on near-term coal production and plant retirement decisions will hinge on how aggressively federal agencies execute these directives and the extent to which courts uphold or constrain the new mandates.

The full memo can be accessed HERE. To request the full list of individual plants possibly extended by these executive orders, please reach out to us at s[email protected].