Executive Order on National Defense and Clean Coal Power
Summary
President Biden issued an Executive Order to strengthen national defense by prioritizing clean coal power generation. The order directs the Department of War to enter into long-term power purchase agreements with coal-fired energy facilities to ensure reliable power for military installations and defense-industrial bases.
What changed
This Executive Order directs the Department of War (DOW), in coordination with the Secretary of Energy, to prioritize the procurement of power from the U.S. coal generation fleet. This is to ensure the resilience and reliability of the electric grid, which is deemed critical for national defense, military operations, and defense-industrial production. The order mandates seeking long-term Power Purchase Agreements with coal-fired facilities, prioritizing those that enhance grid reliability, on-site fuel security, and mission assurance for defense and intelligence capabilities. This action is framed within the context of national energy emergencies and existing executive orders concerning coal industry revitalization and grid security.
Regulated entities, specifically coal-fired power generation facilities, may see increased opportunities for long-term contracts with federal installations. The DOW is tasked with implementing these provisions, and compliance will be subject to applicable law and the availability of appropriations. While the order itself does not create new direct obligations for private entities beyond what is agreed upon in contracts, it signals a significant policy shift towards leveraging coal power for national security purposes. There are no explicit penalties mentioned for non-compliance by the DOW, but the intent is to bolster the coal industry's role in national defense infrastructure.
What to do next
- Coal-fired energy production facilities should monitor opportunities for long-term Power Purchase Agreements with Department of War installations.
- Review Executive Order 14261 and Executive Order 14262 for related policy directives.
- Ensure contractual agreements align with DOW priorities for grid reliability, fuel security, and mission assurance.
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