By Jarrett Renshaw and Timothy Gardner
WASHINGTON, June 4 (Reuters) - President Donald Trump is expected to announce on Thursday that he will invoke Cold War-era emergency powers to direct nearly $700 million to help the U.S. coal industry ship the carbon-intensive fuel to Asia and power companies to burn it domestically, a White House official and industry source told Reuters.
Trump plans to use the Defense Production Act, a 1950 law granting presidents broad authority over industries deemed critical
to national security, to fund upgrades at more than a dozen coal-fired power plants, help finance two new coal plants and support construction of a West Coast coal export terminal, the official and industry source said.
The White House's public schedule lists a 3 p.m. ET (1900 GMT) Trump announcement on "Beautiful, Clean Coal."
The Trump administration has framed energy policy as a national security issue to ensure electricity for AI data centers and reduce reliance on other countries.
POLLUTION CONCERNS
The plan drew condemnation from environmental advocates. Patrick Drupp, climate policy director at the Sierra Club, called it a taxpayer-funded subsidy for a polluting industry and said the group would fight the initiative in courts.
"It is disgusting and reprehensible that the president of the United States is giving away our taxpayer dollars to deadly and expensive coal plants," Drupp said.
Rich Nolan, CEO of the National Mining Association, said the funding would strengthen production of a fuel source that helps insulate consumers from energy price volatility while supporting rising electricity demand.
"The administration is supporting that strategy with decisive action at home to ensure that upgrades to existing energy assets are made, and at our ports to ensure that U.S. coal can answer the world's needs," Nolan said.
Coal, responsible for more than half of U.S. electricity generation in 1990, now generates less than one-fifth as utilities shifted toward cheaper natural gas and renewable energy sources.
More than half of the funding would be used to upgrade 13 coal-fired power plants, with additional money for coal facilities in Alaska, Maryland and West Virginia and the long-proposed West Gateway coal export terminal in Northern California, the official said.
(Reporting By Jarrett RenshawEditing by Rod Nickel)
