The Environmental Protection Agency is scheduled to today unveil restrictions on carbon emissions for new power plants, a key part of President Obama's policy to fight what many see as global warming.
The EPA will reportedly set CO2 limits at 1,100 pounds per megawatt hour for coal plants and 1,000 pounds for most natural gas plants. To meet those restrictions, coal plants would have to capture and store 20-40% of their CO2 emissions using technology that isn't yet being deployed on a commercial scale. The industry argues that the work would be so expensive that it would preclude the building of new plants.
More far-reaching limits for existing facilities are due to be proposed in June 2014.
Companies affected include Patriot Coal (PCXCQ.OB), Alpha Natural Resources (ANR), Arch Coal (ACI), Peabody Energy (BTU), James River (JRCC), Cliffs Natural (CLF), Rhino Resource Partners (RNO), CONSOL Energy (CNX), Oxford Resource Partners (OXF), Walter Energy (WLT) and Natural Resource Partners (NRP).
ETF - KOL.