ND coal industry talks benefits from Trump’s tax and spending law

Bismarck, N.D. – North Dakota’s coal industry is giving high praise to the Trump administration for pushing to have the tax and spending bill approved by Congress this month.

The law, previously known as the ‘big beautiful bill’, has a number of provisions that North Dakota coal producers believe will stimulate their industry in the coming years.

“It’s just been a breath of fresh air since President Trump has come into office with the sweeping change,” said Jonathan Fortner, President and CEO of the Lignite Energy Council on the Flag on Monday.

The new law essentially fulfills promises made in Trump’s executive orders signed in April to revive the coal industry.

For starters, Fortner is happy to see a large reduction in the coal royalty rate.  The rate is applied to companies that mine on federal land.

That rate is dropping from 12.5% to no more than 7% in hopes of boosting coal production.

Listen:  Lignite Energy Council President and CEO Jonathan Fortner on The Flag

 

The coal leasing process is also speeding up.  The U.S. Interior Secretary is now required to make decisions on approving new coal lease requests on federal land within 90 days.

“Before, we had one of our coal mines wait for ten years for a response on whether or not they were approved to mine their land,” said Fortner.

There was also an expansion of coal leasing, which allows the industry to tape into four million acres of untapped federal coal to mine.  It also allows for continuous mining into adjacent land without a need to pause for approval.

“We’re seeing unprecedented off the charts regulations lifted on our industry right now,” said Fortner.

Fortner says the phasing out of tax credits for wind and solar farms, and a federal tax credit to incentivize carbon capture will also provide a big lift.

“We just want to operate in a fair marketplace,” said Fortner.  “If everything was even, we’re going to be really well set off in the future.”

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