White House Reportedly Exploring Wartime Rule To Help Coal, Nuclear

An anonymous reader quotes a report from Ars Technica: According to reports from Bloomberg and E&E News, the Trump Administration has been exploring another way to help coal and nuclear generators: the Defense Production Act of 1950. The Act was passed under President Truman. Motivated by the Korean War, it allows the president broad authority to boost U.S. industries that are considered a priority for national security. On Thursday, E&E News cited sources that said "an interagency process is underway" at the White House to examine possible application of the act to the energy industry. The goal would be to give some form of preference to coal and nuclear plants that are struggling to compete with cheap natural gas.

If the DOE decides not to invoke Section 202(c), the president may turn to the Defense Production Act. According to a 2014 summary report (PDF) from the Congressional Research Service (CRS), the act would allow the president to "demand priority for defense-related products," "provide incentives to develop, modernize, and expand defense productive capacity," and establish "a voluntary reserve of trained private sector executives available for emergency federal employment," among other powers. (Some even more permissive applications of the Act were terminated in 1957.) Using the Act to protect coal and nuclear facilities would almost certainly be more controversial, as the link between national defense and keeping uneconomic coal generators running is not well-established. The Administration could apply the Act to "provide or guarantee loans to industry" for material-specific deliveries and production. "The president may also authorize the purchase of 'industrial items or technologies for installation in government or private industrial facilities,'" reports Ars.