04-14-2025

Reinvigorating America's Beautiful Clean Coal Industry and Amending Executive Order 14241

Executive OrderView the Original .pdf
View the Original .pdf

The 1-Minute Brief

What: Executive Order 14261, "Reinvigorating America's Beautiful Clean Coal Industry," aims to increase domestic coal production by removing regulatory barriers, promoting coal as a primary energy source, and accelerating coal technology.

Money: The order does not appropriate new funds but directs federal agencies to prioritize existing budgets and programs to support the coal industry. By removing the leasing moratorium and streamlining permits, it could generate revenue from federal land leases and royalties, while potentially redirecting federal loans and grants towards coal projects.

Your Impact: The most likely direct effect on an average American could be changes in electricity costs and a shift in the national energy landscape, potentially impacting local air and water quality in mining communities and affecting jobs in both the fossil fuel and renewable energy sectors.

Status: This is an Executive Order, signed on April 8, 2025, and effective as of its publication in the Federal Register on April 14, 2025. It directs federal agencies to take immediate action.

What's Actually in the Bill

Executive Order 14261 is a directive from the President to federal agencies aimed at boosting the U.S. coal industry. The order frames coal as essential for national and economic security, citing its abundance, low cost, and reliability. It mandates a government-wide effort to remove regulatory hurdles, facilitate mining on federal lands, and promote the use and export of American coal. The order also connects the need for more coal power to rising electricity demand from new technologies like artificial intelligence.

Core Provisions:

  • Ends Leasing Moratorium: Officially terminates the "Jewell Moratorium," a pause on new coal leasing on federal lands, and directs the Department of the Interior to expedite the processing of coal lease applications.
  • Removes Regulatory Barriers: Requires all federal agencies to identify and revise or rescind any regulations and policies that discourage coal production and use within 60 days.
  • Prioritizes Coal on Federal Land: Directs the Secretaries of the Interior and Agriculture to prioritize coal leasing as the primary land use for public lands identified as having significant coal resources.
  • Promotes Coal Financing: Orders agencies to rescind policies that discourage investment in coal projects, specifically mentioning the reversal of the 2021 U.S. Treasury Fossil Fuel Energy Guidance for Multilateral Development Banks.
  • Boosts Coal Exports: Mandates the Secretary of Commerce and other agencies to actively promote and identify export opportunities for U.S. coal and related technologies.
  • Supports AI Data Centers: Directs a report within 60 days to identify regions where coal power could support the growing electricity needs of artificial intelligence data centers.
  • Designates Coal as a Critical Mineral: Instructs the Secretaries of Energy and the Interior to evaluate and take steps to designate coal and metallurgical coal as a "critical material" and "critical mineral," respectively, to receive preferential status.

Stated Purpose (from the Sponsors):

The order states its purpose is to secure America's economic prosperity and national security.

  1. Increase domestic energy production to lower the cost of living and meet rising electrical demand from emerging technologies.
  2. Support the domestic coal industry by removing federal regulatory barriers and ensuring federal policy does not discriminate against coal.
  3. Stabilize the grid, create high-paying jobs, and increase American coal exports to support allies and economic competitiveness.

Key Facts:

Affected Sectors: Energy, Mining, Technology (specifically AI data centers), Transportation, and International Finance.
Timeline: The order sets multiple deadlines for agency action, most falling within 30 to 90 days of its issuance on April 8, 2025.
Scope: The order has a national scope, with a specific focus on federal lands, primarily in western states where most federal coal reserves are located. It also extends to U.S. international financing and trade policy.

The Backstory: How We Got Here

Timeline of Events:

The Rise and Fall of Coal (2000s-Present):

U.S. coal production peaked in 2008 at over 1,171 million short tons but has been in a steady decline since, falling to approximately 578 million short tons in 2023. This decline was driven by market forces, primarily competition from cheaper natural gas, the falling cost of renewable energy, and federal regulations aimed at reducing air pollution and greenhouse gas emissions.

The Obama Administration and the "Jewell Moratorium" (2016):

In January 2016, Interior Secretary Sally Jewell initiated a moratorium on new federal coal leases to conduct a comprehensive review of the federal coal program, which hadn't been updated in over 30 years. The review was meant to address concerns about climate change and ensure taxpayers received a fair return from the use of public resources. About 40% of U.S. coal production has historically come from federal lands.

The Trump Administration Reversal and Legal Battles (2017-2024):

In 2017, the Trump administration lifted the moratorium. This decision was challenged in court by environmental groups and several states, leading to a multi-year legal battle. A federal court reinstated the moratorium in 2022, ordering the Bureau of Land Management (BLM) to conduct a new environmental review. However, in February 2024, a Court of Appeals lifted the moratorium, again opening federal lands to new coal leasing.

Why Now? The Political Calculus:

  • Fulfilling a Campaign Promise: The executive order aligns with a consistent theme of prioritizing fossil fuel production and "energy dominance," a cornerstone of the current administration's platform.
  • Economic Pressures and Inflation: The order is framed as a solution to high energy prices and inflation, arguing that increasing the supply of coal will lower electricity costs for consumers and businesses.
  • The AI Boom: The recent and projected explosion in energy demand from AI data centers provides a new and powerful justification for increasing baseload power generation. Projections indicate that data centers could account for 8.6% of all U.S. electricity demand by 2035, more than double their current share.

Your Real-World Impact

The Direct Answer: This directly affects specific groups like the coal industry and communities in mining regions, but its indirect effects on energy prices and the environment could be felt by most Americans.

What Could Change for You:

Potential Benefits:

  • Lower Electricity Bills: If an increased supply of coal lowers the overall cost of electricity generation, those savings could be passed on to consumers, though this is not guaranteed and depends on many market factors.
  • Job Creation in Specific Regions: Increased mining activity could create high-paying jobs in coal-producing states.
  • Grid Reliability: Supporters argue that a greater reliance on coal, a power source not dependent on weather conditions, could enhance the stability of the electrical grid.

Possible Disruptions or Costs:

Short-term (1-3 years):

  • Increased Pollution: Expanded coal mining and combustion could lead to higher levels of air and water pollution in affected communities, with associated public health costs.
  • Land Use Conflicts: Prioritizing federal lands for coal mining could impact ranching, recreation, and conservation efforts.

Long-term:

  • Climate Change Impacts: The order runs counter to policies aimed at reducing greenhouse gas emissions. Increased coal burning would accelerate climate change, contributing to more extreme weather events and their associated costs.
  • Economic Transition Risk: Investing heavily in a declining industry could create stranded assets and hinder the growth of the renewable energy sector, potentially slowing a long-term transition to cleaner energy sources.

Who's Most Affected:

Primary Groups: Coal miners and their families, residents of communities near coal mines and power plants, and utility companies.
Secondary Groups: The renewable energy industry, which competes with coal; the technology sector, particularly AI developers who need vast amounts of power; and U.S. allies who may be export markets for American coal.
Regional Impact: The Western United States, particularly states like Wyoming, Montana, West Virginia, and Pennsylvania, which have significant coal resources on federal and private lands.

Bottom Line: This executive order is a significant attempt to reverse the decade-long decline of the U.S. coal industry, which could lead to lower energy costs and more mining jobs but at the potential cost of environmental quality and progress on climate goals.

Where the Parties Stand

Republican Position: "Unleash American Energy"

Core Stance: The Republican party generally supports an "all-of-the-above" energy strategy that heavily favors fossil fuels to achieve energy independence and lower costs for consumers.

Their Arguments:

  • ✓ Increasing domestic production of oil, gas, and coal is essential for national security and a strong economy.
  • ✓ Removing regulations and streamlining permits will lower inflation and create jobs.
  • ✓ Coal provides reliable, baseload power that is critical for grid stability, especially with rising demand from new technologies.
  • ✗ They generally oppose policies like the Green New Deal and international climate agreements that restrict fossil fuel use.

Legislative Strategy: To support this executive order by using congressional oversight to ensure its implementation, blocking attempts to defund it, and introducing legislation that codifies its provisions into law.

Democratic Position: "A Just Transition to Clean Energy"

Core Stance: The Democratic party generally supports transitioning away from fossil fuels to combat climate change and advocates for investments in renewable energy and energy efficiency.

Their Arguments:

  • ✓ The U.S. must take urgent action to address the climate crisis by moving to 100% clean energy.
  • ✓ Subsidies and investments should be directed toward renewable sources like solar and wind, not fossil fuels.
  • ⚠️ While some acknowledge a role for natural gas as a bridge fuel, there is strong opposition to new investments in coal due to its environmental and health impacts.
  • ✗ They strongly oppose policies that expand fossil fuel extraction, especially on public lands, and support rejoining international climate agreements.

Legislative Strategy: To oppose this executive order through congressional oversight, attempt to block its implementation through the appropriations process, and support legal challenges against it. Democrats would likely introduce legislation to promote clean energy and restore environmental protections.

Constitutional Check

The Verdict: ⚠️ Questionable

Basis of Authority:

The President is using their executive authority to direct the actions of federal agencies under existing laws, such as the Mineral Leasing Act of 1920 and the National Environmental Policy Act (NEPA). The core assertion is that the President has the power to set policy priorities and direct how agencies implement the laws passed by Congress.

Article II of the U.S. Constitution: "[The President] shall take Care that the Laws be faithfully executed..."

Constitutional Implications:

[Separation of Powers]: The order directs agencies to take actions that may conflict with the original intent of environmental laws passed by Congress, such as NEPA and the Clean Air Act. Critics will argue this amounts to unilaterally rewriting the law, which is a legislative function.
[Precedent]: Past executive orders that have dramatically shifted environmental and energy policy have faced numerous legal challenges. Courts have often scrutinized whether the executive branch has overstepped its authority in interpreting and implementing congressional statutes.
[Federalism]: The order explicitly targets state-level climate programs, setting up a potential conflict over states' rights to regulate commerce and protect their own environment, which could be challenged under the 10th Amendment.

Potential Legal Challenges:

Legal challenges are highly likely from environmental organizations, states with conflicting climate policies, and potentially renewable energy trade groups. Lawsuits will likely argue that:

  • The administration violated the Administrative Procedure Act (APA) by not following proper rulemaking procedures for rescinding existing regulations.
  • The actions mandated by the order are an "arbitrary and capricious" reversal of previous policy without adequate justification.
  • The order exceeds the President's constitutional authority and infringes on the powers of Congress.

Your Action Options

TO SUPPORT THIS BILL

5-Minute Actions:

  • Call Your Rep/Senators: Capitol Switchboard: (202) 224-3121 "I'm a constituent from [Your City/Town] and I urge [Rep./Sen. Name] to support Executive Order 14261 and the revitalization of the American coal industry."

30-Minute Deep Dive:

  • Write a Detailed Email: Contact members of the Senate Committee on Energy & Natural Resources and the House Committee on Energy & Commerce to express your support.
  • Join an Organization: Groups like the American Coal Council, the National Mining Association, and the Coal-to-Liquids Coalition advocate for these policies.

TO OPPOSE THIS BILL

5-Minute Actions:

  • Call Your Rep/Senators: Capitol Switchboard: (202) 224-3121 "I'm a constituent from [Your City/Town] and I urge [Rep./Sen. Name] to oppose Executive Order 14261 and work to block its implementation."

30-Minute Deep Dive:

  • Write a Letter to the Editor: Submit a letter to your local newspaper outlining your concerns about the environmental, health, and economic impacts of expanding coal production.
  • Join an Organization: Groups like the Sierra Club (Beyond Coal Campaign), Earthjustice, the NAACP Environmental and Climate Justice Program, and the Center for Biological Diversity actively work to oppose new fossil fuel projects.