A coal-fired power plant in Indiana will receive millions of dollars from the federal government after the Trump administration on June 4 announced $700 million in subsidies to the U.S. coal industry.
Hallador Power Company’s Merom Generating Station, which sits along Sullivan Lake south of Terre Haute, will receive more than $27 million to modernize. The 1080-megawatt plant is one of 12 listed on the U.S. Department of Energy website receiving subsidies under the 1950 Defense Production Act.
“This modernization initiative will maintain operational reliability and promote environmental stewardship,” a DOE news release says.
Hallador Energy, based in Colorado, did not immediately respond to IndyStar’s request for comment.
President Trump announced the subsidies from the Oval Office, saying the federal money will support thousands of jobs and save Americans billions in electricity costs.
“We’re officially invoking the Defense Production Act to save 13 coal plants …” Trump said. “These were incredible plants.”
Congress established the federal law behind the infusion of funds in 1950 during the Korean War. The law gives the president authority to expand the U.S. industrial base.
The news sparked disapproval from several corners.
David Jenkins, president of the national nonprofit Conservatives for Responsible Stewardship, said the “taxpayer dollar handout to the coal industry is boneheaded on steroids,” in a news release.
“This is a total misuse of the Defense Production Act, a giant gift-wrapped payout to subsidize and prop up a flailing industry that can no longer compete in the free market,” said Jenkins, whose group is based in Virginia.
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