With the U.S. coal sector showing signs of weakness, the Interior Department is pausing new coal leases and launching a review of the federal coal program.

In his final State of the Union address earlier this week, President Barack Obamasaid the nation’s energy policy priorities should focus on a transition away from “old, dirtier energy sources.”

U.S. Interior Secretary Sally Jewell on Friday announced the next steps in the Obama administration’s plans for the coal industry. Last year, she called for a dialogue on coal during an address before the Center for Strategic and International Studies.

The department said it is launching a review of the federal coal program, and will prepare a Programmatic Environmental Impact Statement to identify potential reforms, potentially including leasing mechanisms and royalty rates. While the review is ongoing, the Interior Department is pausing new coal leasing on public lands, with continued mining under existing leases. The review process is expected to take three years.

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