October 3, 2025 - On September 29, Secretary of the Interior Doug Burgum signed a policy initiative that seeks to “unshackle” coal by opening 13.1 million acres of federal land for coal leasing and reducing the coal royalty rate to 7%.

This initiative was outlined in the One Big Beautiful Bill Act passed earlier this year. However, Burgum approved more than three times the amount of land directed in the act, which had only required that at least 4 million acres be opened.

Wyoming Governor Mark Gordon held a virtual press conference, explaining that these policy changes will make coal a more competitive energy source and expand production. Coal output in Wyoming peaked in 2008 at 466.3 million tons, but by 2024 production had dropped to 190.7 million tons, according to the Mine Safety and Health Administration.

Gordon said he expects Wyoming coal revenues to remain stable despite the royalty decrease, citing increased production to offset the loss.

At the same time, the Department of Energy announced a $650 million investment in the U.S. coal industry. The funding will support modernization of coal power units, improve rural energy affordability, and fund dual-firing retrofits to allow plants to operate on both natural gas and coal.

“All of these things should reduce the cost to consumers. And I think that’s one of the key elements to this,” Gordon said. “Not only do we need enormous amounts of power with all of the AI coming on board—and that is something we’ll be able to sell power to—but it’s also important that we do it in a way that reduces costs for customers.”

Following a proposal to approve the Wyoming Coal Combustion Residuals Permit Program, Gordon said Wyoming coal is well positioned for growth.