Restoring Reliability: Coal Recommissioning and Modernization

The Restoring Reliability: Coal Recommissioning and Modernization grant, issued by the U.S. Department of Energy's Golden Field Office, responds to an urgent national grid reliability crisis. This opportunity arises under Broad Agency Announcement DE-FOA-0003605 and is supported by authorities established under Executive Order 14156, which declared a national energy emergency in early 2025. The Department of Energy (DOE), using its authority under the Infrastructure Investment and Jobs Act (IIJA) and 42 U.S.C. § 7256, has created this milestone-based funding opportunity to commission, recommission, or modernize coal-fired generation assets. These efforts aim to stabilize the electric grid in the face of rising energy demands, particularly in regions with transmission constraints and critical infrastructure needs, such as defense installations, semiconductor fabrication plants, and AI data centers. The grant offers up to $525 million in total funding, divided between two topic areas. Topic Area 1, focused on construction, recommissioning, and retrofitting of coal assets, is allocated up to $350 million across five awards. These projects may include phased upgrades, starting with immediate reliability improvements and culminating in integrated carbon capture, utilization, and storage (CCUS) systems. Topic Area 2, with up to $175 million in funding for five awards, supports rural energy affordability and capacity improvements by modernizing coal-fired assets in rural or remote communities. Each project must include both coal-fired generation and CCUS elements to be eligible. Projects solely focused on carbon capture and storage, without utilization, are considered lower priority. DOE funding is structured around independently verified milestones and requires a minimum 50% non-federal cost share, though federal financing tools such as DOE loan guarantees may be considered. Eligibility for this funding is limited to entities that own or operate qualifying coal-fired generation assets. For Topic Area 1, the assets must be currently inactive, planned for retirement before 2032, or new coal construction. For Topic Area 2, eligible entities must serve rural or remote communities as defined by IIJA §40103(c). In both cases, applicants must be domestic entities, and projects must demonstrate a clear link to reliability, affordability, and strategic load support. Team members may include national laboratories, nonprofits, higher education institutions, tribal entities, and private sector partners. However, certain entities—such as foreign-controlled organizations and those designated under the CHIPS and Science Act as "Entities of Concern"—are prohibited from participation. Pre-award costs are ineligible for reimbursement, and compliance with the Davis-Bacon Act, Buy America requirements, and the National Environmental Policy Act (NEPA) is mandatory for all selected projects. The application process is rigorous, consisting of detailed narrative components, financial plans, a techno-economic analysis (TEA), and a construction strategy. Applicants must submit via DOE’s Infrastructure eXCHANGE portal, with registration in SAM.gov and FedConnect required in advance. For Topic Area 1, applications are due by February 11, 2026, at 8:00 PM Eastern Time. Applications are evaluated based on technical merit, grid impact, financial and market viability, team qualifications, and alignment with DOE’s strategic goals. A comprehensive review process involving both federal and non-federal experts ensures selection integrity. Selected projects may span up to six years for Topic Area 1 and four years for Topic Area 2. Awards are contingent upon milestone completion, with DOE disbursing funds only upon verified progress. The program aims to accelerate the reactivation of coal infrastructure in a manner that complements the nation’s transition to clean energy, ensuring that mission-critical loads are supported by reliable and affordable power. While the current cycle closes in early 2026, the program is expected to recur, subject to future appropriations. For more information or technical difficulties with the application process, applicants can contact the program team at [email protected].

Emphasize milestone feasibility, readiness for deployment, CCUS integration, and community/job impact. Cost share rigor and spend plan accuracy are critical.