Restoring Reliability: Coal Recommissioning and Modernization

The U.S. Department of Energy (DOE), through the Office of the Under Secretary for Energy, has issued a Broad Agency Announcement (BAA Number DE-FOA-0003605) titled "Restoring Reliability: Coal Recommissioning and Modernization." This funding opportunity responds to the national energy emergency declared in Executive Order 14156 in January 2025, prompted by grid reliability challenges caused by the rapid retirement of coal-fired power plants, constrained transmission capacity, and surging energy demand. This BAA offers up to $525 million in federal funding to catalyze the recommissioning, modernization, and targeted retrofitting of coal-fired generation assets to restore stable and secure electricity supply. The funding opportunity supports two distinct Topic Areas. Topic 1 provides up to $350 million for up to five milestone-based awards supporting commissioning, recommissioning, and modernization of coal-fired units, including phased integration of carbon capture, utilization, and storage (CCUS) technologies. Topic 2 allocates up to $175 million for up to five awards directed at enhancing energy affordability and resilience in rural or remote communities through modernization or recommissioning of existing coal plants. All projects must include both coal-fired generation and CCUS elements. Preference is given to projects that include carbon utilization components over those that solely use carbon storage. Applicants must be domestic entities that own or operate eligible coal-fired generation assets. Topic 1 applicants must demonstrate that their units are inactive, slated for retirement before 2032, or in need of modernization. Topic 2 applicants must serve rural communities of fewer than 10,000 residents, per statutory definitions, and show direct benefits in energy affordability, security, or resilience. Federally Funded Research and Development Centers (FFRDCs) may participate only as team members and require prior written authorization. Projects involving Tribal lands or potentially impacting Tribal rights must include documentation of Tribal awareness or support. Applications are due by December 8, 2025, at 8:00 PM Eastern Time. Applicants must complete registrations in SAM.gov, Infrastructure eXCHANGE, and FedConnect prior to submission. The application must include a project narrative, technical and financial documentation, a Techno-Economic Analysis (TEA), a construction or permitting strategy, team resumes, letters of commitment, and multiple compliance certifications. Pre-award costs are not permitted. Cost share is required at a minimum of 50% from non-federal sources, with milestone payments tied to verified technical progress. The DOE will evaluate proposals based on technical merit, financial feasibility, grid value, execution readiness, and alignment with national energy priorities. Selected projects will be funded through Other Transaction Agreements (OTAs), with funding contingent on completion of negotiated milestones. All work must be performed in the U.S., and projects must comply with Davis-Bacon Act wage requirements and Buy America provisions. The program is expected to recur annually, and projects may extend up to six years depending on the topic area.

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