July 7, 2025 - President Donald Trump’s “One Big Beautiful Bill” includes multiple provisions intended to “level the playing field across the energy sector,” according to the West Virginia Coal Association.

The bill phases out several clean energy tax credits and delays emissions-reduction mandates for energy producers. It also overhauls the permitting process for energy projects and allows metallurgical coal producers to claim a tax credit previously reserved for “critical minerals.” 

Coal Association President Chris Hamilton said red tape and bureaucratic hurdles in the permitting system have long slowed growth in the industry.

“Any time you can expedite permitting for industrial development — in this case new mine and mine-related development — it’s a help,” Hamilton said. “This bill also provides protections against some of the lawsuits and legal challenges that have slowed or stopped these projects.”

In April, Trump issued a series of executive orders aimed at boosting the nation’s coal industry, including one directing U.S. Energy Secretary Chris Wright to include metallurgical coal on the Department of Energy’s Critical Material List.

Under the new law, producers of critical minerals — now including met coal — can claim a 2.5% tax credit. Hamilton said that will result in “significant” savings for West Virginia’s industry.

“We’re still running those numbers, and it’s going to be site-specific,” he said. “(The savings) is going to vary from site to site because it’s tied directly into the production costs. In some cases, production costs have exceeded the market value, so that’s created a real problem, particularly for those met coals competing on a global market with the likes of Australia, Colombia and other places.” 

Despite the benefits of the bill and executive orders, Hamilton said the industry continues to face challenges due to shifting tariffs and trade policies.

“Not only do these coals face fierce competition internationally, but we are hit with trade wars and impending tariffs,” he said. “It’s not just the competition, but the additional challenges that create uncertainties for metallurgical coal especially.”

Hamilton said he hopes the Trump administration takes further steps to support coal.

“There is hopefully some additional dollars that can be drawn down to help modernize (existing plants) and even consider some new coal-fired plants here in West Virginia, or new coking facilities,” he said. “There is no reason why we can’t be some sort of a laboratory for the federal Department of Energy.”

On the state level, provisions of a bill backed by Gov. Patrick Morrisey that aim to incentivize data center development — a move seen as favorable by the coal industry — are set to take effect this month.

House Bill 2014 requires the West Virginia Public Service Commission to order utilities to update their long-term plans for providing reasonably priced and reliable electricity. 

“The PSC has already jump-started that process by issuing orders that basically require our regulated utilities in the state to develop plans going forward — integrated resource plans — to tell the PSC how they plan to improve the efficiencies of these plants and ultimately extend the operating life of these plants,” Hamilton said.

The PSC issued General Order No. 183.15 on May 23. It requires each utility in the state to submit an updated integrated resource plan by Oct. 1 that complies with HB 2014. The plans must include a detailed plant upgrade and maintenance schedule, a compliance timeline, and cost estimates for operating each generating unit through its planned retirement date.

According to a 2023 West Virginia University study using 2019 data, West Virginia was the leading producer of metallurgical coal in the United States. 

Most of the state’s met coal is mined in the southern region. Logan and Raleigh counties each produced more than 6 million short tons in 2019. Fayette, McDowell and Wyoming counties in the south, and Taylor County in the north, each produced over 2 million short tons.

The majority of West Virginia's met coal comes from the southern part of the state.

US MSHA and West Virginia Coal Association

In total, the state produced 34.6 million short tons of met coal in 2019. That same year, met coal mining directly supported nearly 6,900 jobs in West Virginia, according to the Coal Association.

According to data from the West Virginia Coal Association, met coal production in the state directly generated nearly 6.9 thousand coal mining jobs in 2019.

US MSHA and West Virginia Coal Association

West Virginia has nine coal-fired electrical generation facilities: Pleasants Power Station, Harrison Power Station, Mountaineer Power, John Amos, Mount Storm, Morgantown Energy Associates, Longview Power, Fort Martin Power Station and Mitchell Power.

The state is the second-largest coal producer in the nation, behind Wyoming, accounting for 15% of total U.S. coal production, according to the U.S. Energy Information Administration.

West Virginia also holds 16% of the nation’s recoverable coal reserves, ranking third behind Wyoming and Illinois.

In 2023, coal-fired power plants produced 86% of West Virginia’s electricity. Renewable sources, mostly wind and hydroelectric, accounted for 7%, and natural gas contributed another 7%.