Restoring Reliability: Coal Recommissioning and Modernization

The U.S. Department of Energy (DOE), through the Office of the Under Secretary for Energy, has released the “Restoring Reliability: Coal Recommissioning and Modernization” Broad Agency Announcement (BAA), Solicitation Number DE-FOA-0003605. This program was initiated under the authority of Executive Order 14156, “Declaring a National Energy Emergency” (January 20, 2025), in response to increasing energy reliability challenges and the need to modernize domestic coal-fired power assets. Funding for this opportunity is drawn from unobligated balances appropriated to DOE’s Office of Clean Energy Demonstrations under the Infrastructure Investment and Jobs Act (IIJA) and related legislation. The BAA will use milestone-based Other Transaction Agreements (OTAs) to ensure accountability and progress verification at each project stage. The program provides up to $525 million in total federal funding across two topic areas. Topic 1—Coal Recommissioning, Retrofit, and Modernization Projects—offers up to $350 million for approximately five awards to recommission or upgrade inactive or retiring coal plants to enhance grid reliability and prepare for future carbon capture integration. Topic 2—Rural Capacity and Energy Affordability Coal Projects—allocates up to $175 million for up to five awards aimed at rural or remote communities, emphasizing affordability, energy resilience, and workforce retention. Each project must demonstrate clear benefits to local economies and energy systems. DOE expects project periods of up to six years for Topic 1 and up to four years for Topic 2. A defining feature of this solicitation is its strict cost-share requirement: DOE contributions may not exceed 50 percent of the total project cost. Applicants must provide the remaining cost share from non-federal sources such as private investment, local governments, or third-party financing. Federal loan guarantees may not be used concurrently to meet this obligation. Applications must include detailed milestone payment schedules and project spend plans demonstrating compliance with cost-share rules throughout the performance period. Eligibility is restricted to domestic entities organized under U.S. law with majority domestic ownership and a physical U.S. presence. Eligible applicants include utilities, independent power producers, state or local governments, tribal entities, national laboratories, higher education institutions, and nonprofit organizations. Federal agencies and Federally Funded Research and Development Centers (FFRDCs) may only participate as team members. Applicants debarred or suspended from federal programs are ineligible. Applications must be submitted through DOE’s Infrastructure eXCHANGE portal by November 13, 2025, at 8:00 p.m. Eastern Time. Applicants must be registered in SAM.gov and possess a Unique Entity Identifier (UEI) before submission. The selection process includes an initial eligibility review, merit evaluation by federal and non-federal experts, and oral presentations for finalists. Evaluation criteria emphasize technical merit, feasibility, cost realism, milestone structure, and execution risk. Awards will be finalized through negotiation, with DOE reserving discretion to adjust the number and scale of projects based on available funding and regional distribution. For program inquiries, applicants may contact CCRM-BAA@hq.doe.gov. Technical support for eXCHANGE submissions is available at InfrastructureExchangeSupport@hq.doe.gov. DOE anticipates issuing subsequent solicitations based on the evolving needs of the national grid and future appropriations.

Ensure milestone-based cost-share plan; emphasize reliability and rural benefits.