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Winners get the Char Badge. TM rewarded is Lava Plume, because that move deserves to be a TM.
Cole's Vulpix/Ninetails has the Drought ability, and all of his pokemon are holding Charcoal.
>Hiya, trainer! Name's Cole. This building doubles as a coal refinery and a Pokemon gym, and I happen to be the boss of both.
>You have three badges, don't you? Well, that means that if you beat me, you'll be halfway to the Pokemon league. If you want to succeed, you'll have to learn how to deal with advanced battle techniques. See, some Pokemon can have different abilities than usual, and there are certain battle conditions that can be good for certain types, and bad for others. If you thought you could just skirt by with Water-types here, you'll see what I mean - get ready for a red-hot battle with my Fire pokemon!