Recently, the Trump administration recently announced a broad plan to strengthen America’s coal industry.
The Department of Energy, the Department of the Interior, and the Environmental Protection Agency outlined new funding, expanded leasing, and regulatory relief to extend the life of coal plants to meet rapidly increasing electricity demand and ensure reliable, affordable, and dispatchable electricity.
For Wyoming, the top coal producer in the nation, these actions matter.
Coupled with the July decision to reduce the royalty rate for coal on federal lands to 7% and the state’s reduction of the severance tax on surface coal, Wyoming’s coal and mining industry is in a prime position to thrive after years of being tied to burdensome regulations and executive orders.
Importantly, the tax and royalty burden on the industry has been “right- sized” to meet today’s competitive market conditions.
Wyoming coal has been the backbone of America’s power supply for decades, but it has also been carrying a heavier financial load than other fuels.
Royalty rates directly affect whether Wyoming coal is competitive in the national marketplace.
When the cost of production on coal is pushed higher than on competing fuels — in part due to its diverse tax structure —, markets move away from coal regardless of reliability or demand.
The Department of the Interior is leveling the playing field for the coal fuel supply by adjusting the royalty rate downward.
To have a competitive coal fuel supply, taxes and royalties must be equalized.
Wyoming coal has been carrying a heavier burden, and this change ensures that when utilities and consumers make decisions, they are comparing fuels on merit, not distorted by unequal tax structures.
The stakes are not just economic. Royalty reform means Wyoming coal can remain affordable to the utilities and states that depend on it, preserving thousands of jobs and millions in revenue for schools, roads, and local services.
It also means stability for our rural communities that depend on coal payrolls and the spin-off economy. For too long, royalty rates have been discussed as a simple line item.
In truth, they are a determining factor in whether our coal mines stay open, our plants continue to run for the long term, and Wyoming coal remains a cornerstone of America’s energy supply.
The new leasing announcement is equally essential.
Opening 13.1 million acres of federal land for coal production ensures that supply will be available long -term.
It is triple the benchmark set under the One Big Beautiful Bill Act and clearly recognizes that coal is not a resource of the past but a resource for America’s increasing present and future energy demands.
These federal actions come at a critical time. Electricity demand across the United States is rising rapidly, driven by general consumer increases, data centers, artificial intelligence, and advanced manufacturing.
Meeting this demand requires every reliable source of power, and coal is the backbone of that reliability.
At a time when national security and energy independence are at the forefront, coal ensures our nation can generate power without depending on unstable global markets.
Along with the royalty rate reduction and leasing announcement, the Department of Energy committed $625 million in investments to extend plant life and improve reliability.
These measures give coal plants the time and flexibility to continue operations while innovation and advanced technologies progress.
There are short-term pains in adjusting to and weathering the debates around coal’s future. But the long-term gains are far greater.
Royalty relief, fair taxes, and federal support give Wyoming coal a fair shot to compete and to continue delivering what America needs: affordable, reliable, dispatchable energy and secure jobs for Wyoming families.
Leadership at the federal and state levels has brought significant, welcomed changes to an industry that has struggled to keep up with the pendulum swings of new federal administrations over the recent decade.
Trump's policy changes are about ensuring Wyoming coal remains a vital part of America’s energy future. They will strengthen our communities, secure and create good-paying jobs, and give confidence that Wyoming coal will be there to do the job and power the nation.
The Wyoming Energy Authority and the Wyoming Mining Association are proud to support these changes and initiatives together. We have long worked with Gov. Mark Gordon, Sens. John Barrasso and Cynthia Lummis, Rep. Harriett Hageman, the University of Wyoming School of Energy Resources and many across the state to ensure coal remains part of the national conversation. Recent announcements show that effort is making a difference.
- Rob Creager, Executive Director, Wyoming Energy Authority
- Travis Deti, Executive Director, Wyoming Mining Association
