PolicyBrief
H.R. 280
119th CongressJan 9th 2025
COAL Act of 2025
IN COMMITTEE

The COAL Act of 2025 mandates the prompt approval of pending federal coal lease applications and nullifies the 2016 moratorium on new coal leasing on federal lands.

Harriet Hageman
R

Harriet Hageman

Representative

WY

LEGISLATION

COAL Act of 2025 Mandates Immediate Approval of Federal Mining Leases and Ends Leasing Moratorium

The Combating Obstruction Against Leasing (COAL) Act of 2025 is a direct push to restart the engines of the American coal industry by cutting through administrative red tape. Specifically, Section 2 of the bill orders the Secretary of the Interior to fast-track any pending coal lease applications where environmental reviews have already started. It doesn't just ask for a review; it mandates that the Secretary finalize the fair market value and grant the applications "as soon as practicable." For mining companies that have already won leases but are stuck waiting for final permits to break ground, this bill requires the Department of the Interior to hand over those final approvals immediately so mining can begin.

Clearing the Path for Production

This legislation is designed to move projects from the "pending" pile to the "active" pile with surgical precision. For a worker in a mining town in Wyoming or West Virginia, this could mean the difference between a project sitting in bureaucratic limbo for years and a job site opening up in the near future. By requiring the publication of draft environmental assessments and the finalization of land values, the bill aims to eliminate the "pocket veto" where applications simply languish without a decision. However, because Section 2 requires the Secretary to "take all intermediate steps necessary to grant the application," it places a heavy thumb on the scale in favor of approval, potentially limiting the government's ability to say "no" even if new concerns arise during the final review stages.

Tearing Up the Pause Button

The bill’s most significant long-term impact comes in Section 3, which officially kills Secretarial Order 3338. That 2016 order effectively hit the pause button on new coal leasing on federal lands while the government studied the program’s impact on climate change and taxpayer value. This bill declares that pause void and unenforceable, even if a court tries to uphold it or if the Department of the Interior wants to keep studying the issue. For energy companies, this reopens the door to thousands of acres of federal land for future extraction. For communities concerned about the long-term effects of carbon emissions or the preservation of federal lands for recreation and conservation, this represents a permanent removal of a key administrative tool used to manage environmental impact.

Real-World Stakes and Implementation

If you’re managing a business that relies on steady energy costs or working in the heavy machinery sector, this bill is intended to stabilize the supply of domestic coal. By forcing the government to grant approvals for previously awarded leases, the bill ensures that companies that have already invested capital can actually start digging. The challenge, however, lies in the speed. The directive to "promptly process" could lead to rushed environmental assessments, which often results in lawsuits that can end up stalling projects in court anyway. While the bill aims for efficiency, the mandate to approve applications—rather than just process them—marks a significant shift in how federal lands are managed, prioritizing resource extraction as a non-negotiable outcome for these specific pending tracts.