Trump taps defense funding for Indiana coal upgrades

President Donald Trump on Thursday announced he’d direct $700 million in national defense and energy funding to refurbish or build coal power infrastructure across the country — including Indiana — in a bid for affordability.

“Today, we’re taking historic action to bring down the price of energy and the cost of living for all Americans with the power of clean, beautiful coal,” Trump said during an Oval Office event.

The coal-focused changes won’t impact oil prices that have surged since Trump launched war with Iran.

He invoked the Cold War-era Defense Production Act, which gives the president authority over domestic industry.

More than half the funding, $425 million, will “save” 14 coal-powered plants — including Indiana’s Merom Generating Station, operated by Hallador Power Co. Specific amounts were not provided.

The two-unit, 1,080-megawatt plant, located in Sullivan County, has been in continuous operation since 1982, according to Hallador.

Reliable Energy, a trade association representing Hoosier coal interests, celebrated the move in a Friday statement.

“Yesterday’s announcement recognizes the critical role Hallador Energy and its 1,000-megawatt Merom Generating Station play in maintaining grid reliability and supporting Indiana’s economic growth,” organization President Savannah Kerstiens said. “As a recipient of this investment, Hallador exemplifies how existing generation assets provide the dependable, around-the-clock power needed to meet rising electricity demand and strengthen America’s energy security.”

The money will enable the selected facilities to “invest in upgrades that extend their operational life, reinforce grid reliability, and keep electricity prices low as demand grows,” Trump’s executive office said in a news release.

Neither Hallador nor Trump’s office immediately replied to questions on the amount of funding or types of upgrades planned.

“This funding will also go a long way to support many coal mines that send coal to powerplants,” the office added.

Hallador’s parent company, Hallador Energy, also owns Sunrise Coal — Indiana’s third-largest coal producer.

An additional $75 million in Defense Production Act funds will support construction of a coal export terminal in California.

Trump also announced $200 million in Department of Energy matching grant dollars to build new coal-powered plants in Alaska and West Virginia — the nation’s first since 2013 — and restart a plant in Maryland.

Thursday’s funding package, according to the news release, would “bring the number of beautiful, clean coal plants President Trump has supported & saved to 102.”

Trump’s Department of Energy has issued several emergency orders requiring the Northern Indiana Public Service Co. and CenterPoint Energy to continue operating aging coal units through at least June 21 — months after their planned retirements.

The utilities say Trump’s orders are costing them — and down the line, Indiana ratepayers — hundreds of millions of dollars.

Deputy Washington bureau chief Jacob Fischler and Senior Reporter Casey Smith contributed.