Trump’s coal rescue is getting more complicated

Uncovered coal trains

Enlarge / An eastbound Norfolk Southern Corp. unit coal train passes through Waddy, Kentucky. (credit: Luke Sharrett/Bloomberg via Getty Images)

According to four people who spoke to Politico on conditions of anonymity, the Trump administration's plan to bail out coal and nuclear plants has hit a speed bump within the White House itself.

The most recent plan from the Department of Energy (DOE) involved invoking the Defense Production Act of 1950, a wartime rule that allows the president to incentivize and prioritize purchases from American industries that are considered vital to national security.

Another potential plan involved invoking Section 202(c) of the Federal Power Act to mandate that struggling coal and nuclear plants stay open either through compulsory purchases by grid managers or through subsidies. FirstEnergy, a power corporation whose coal and nuclear units are under Chapter 11 bankruptcy, petitioned the DOE to use this power in April.

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