To the delight of Wyoming’s top elected officials, President Donald Trump signed a series of executive orders Tuesday to “reinvigorate” U.S. coal, but whether deregulation can …
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To the delight of Wyoming’s top elected officials, President Donald Trump signed a series of executive orders Tuesday to “reinvigorate” U.S. coal, but whether deregulation can change the tide of market forces remains to be seen. During Trump’s first term in office, the coal industry continued to lose most of its electric utility market share to natural gas and spiraled into a series of bankruptcies.
The orders will restore “beautiful, clean coal,” according to the White House, by “removing federal regulatory barriers that undermine coal production, encouraging the utilization of coal to meet growing domestic energy demands, increasing American coal exports, and ensuring that federal policy does not discriminate against coal production or coal-fired electricity generation.”
At Trump’s invitation, Gov. Mark Gordon was on hand at the White House to celebrate the signing.
“This is a great day for Wyoming coal,” Gordon said Tuesday in a prepared statement. “We produce more coal than any other state in the nation. These executive orders will be impactful for our state’s coal industry and will help ensure Wyoming coal is available to help meet our nation’s growing energy demand.”
Likewise, Sen. Cynthia Lummis attended the event and lauded the president’s embrace of coal.
“Wyoming stands ready and able to support President Trump’s initiative,” Lummis said in a prepared statement. “The previous administration’s anti-science, anti-energy, anti-Wyoming policies cost good paying jobs, increased energy costs and played into the hands of America’s adversaries.”
The orders direct federal agencies to lift perceived regulatory barriers to coal mining and direct the Bureau of Land Management to “prioritize coal leasing and related activities, consistent with applicable law, as the primary land use for the public lands with coal resources.” Trump will also use his presidential emergency authority to allow utilities to continue operating coal-burning electric generation facilities previously scheduled for retirement. The president’s orders also exempt, for two years, coal plants from previous federal requirements to reduce toxic emissions, including for arsenic, mercury and benzene.
The actions, according to the Trump administration, are necessary to assert “American energy independence” and to ensure U.S. coal will help meet “the rise in electricity demand due to the resurgence of domestic manufacturing and the construction of artificial intelligence data processing centers.”
How quickly the sweeping actions might slow or reverse more than 15 years of policy and market shifts away from coal and toward natural gas, wind and solar energy remains to be seen, according to some industry analysts. Regardless, many coal-reliant utilities have already delayed or erased coal plant retirement dates in recent months, including PacifiCorp, which operates several coal-fired units in Wyoming.
Conservation groups were quick to condemn Trump’s actions.
“Like his recent tariffs, the executive order that President Trump signed [Tuesday] presumes Americans are living in the distant past,” Western Organization of Resource Councils Board Chair Barbara Vasquez said. “It makes no economic, financial, or market sense and is simply a gift to corporate polluters that rural communities will have to pay for through higher electric bills, worsened air quality and toxic pollution of public lands and waters.”
Climbing out of the pit
The Interior Department responded immediately, directing its Bureau of Land Management on Tuesday to resume leasing federal coal in the Powder River Basin — the nation’s largest coal-producing region overlying northeast Wyoming and parts of Montana.
“The Golden Age is here, and we are starting to ‘Mine, Baby, Mine’ for clean American coal,” Interior Secretary Doug Burgum said. “Interior is unlocking America’s full potential in energy dominance and economic development to make life more affordable for every American family while showing the world the power of America’s natural resources and innovation.”
The BLM, under the Biden administration in 2024, issued its final supplemental environmental impact statement and proposed amendment to land use plans directing its Buffalo and Miles City, Montana, field offices, to select a “no future coal leasing alternative.” It justified the move, in part, by noting that coal companies had not nominated a major new federal coal lease in the region in more than 10 years and that existing leases would allow mining to continue through 2041.
Wyoming and Montana sued the BLM in December, seeking to overturn the leasing ban. Now that the agency appears to be rolling back the ban under Trump’s directive — while the matter is still before the courts — it remains unclear whether mining companies in the region will produce more coal or nominate federal coal for new leases.
For now, U.S. coal remains in decline, according to the U.S. Energy Information Administration. The production decline, at least for the next year or so, will remain most prominent in the Powder River Basin, according to industry analyst group McCloskey.
At the same time, however, forecasts for skyrocketing electricity demand in the U.S. provide hope for Powder River Basin producers, who rely almost entirely on the nation’s fleet of coal plants.
“The electricity demand that these data centers require — right now it represents roughly about 4% of the electricity produced in the United States,” McCloskey Data Analytics Director Andrew Blumenfeld said during a webinar in March. “That is expected to grow to 12% of the electricity demand in the United States by 2028 — a mere three years from now.”
In a recent quarterly report call with investors, Peabody Energy — Wyoming’s largest coal producer — said that it is being approached by data center developers to explore deals for coal contracts, in some cases, to potentially build their own dedicated coal-fired power generation.
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