EPA Seeks to Cut Carbon Dioxide Emissions by 30 Percent

Rick Newman of Yahoo! Finance says the battle over the potential law is just getting started.
4:39 | 06/02/14

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Transcript for EPA Seeks to Cut Carbon Dioxide Emissions by 30 Percent
Okay. It's Monday June 2 and the markets are open today's big over 30% that. PA wants to cut carbon dioxide emissions by in this country. Often -- nation's coal plants for the year 2030 that's according to several news reports now the Obama administration is expected to announce that landmark proposal elaborately. -- what I'm Dan Cutler in New York's here discuss the financial and political ramifications of this sort of bring in Rick Newman from Yahoo! finance on this morning. Rick I mean you can hear the approval you can hear the jeers from this as well the first what I -- significance of this carbon pollution proposal. That proposal itself is pretty significant I mean I think it's being characterizes as the most aggressive any US president has ever been about climate regulation. But let's remember this is a proposal. -- which means it will be published in the federal register. Industry will Havel -- -- an opportunity to comment. There'll definitely be some changes in this proposal by the time it goes into effect which could be here for an hour -- longer. So I think a huge lobbying battle is just getting started Washington over whether this gonna survive in in the form that it's originally introduced. Now the president not going with congress on this on right and he's using executive authority that we're getting reports -- What are we supposed that from the Senate Minority Leader Mitch McConnell from Kentucky a major coal producer major coal user than. His reaction to this. -- I'm sure we're gonna hear the usual complaints about the president doing in and around ignoring congress. And it's no secret why I mean -- -- -- can't get anything through congress. Virtually none of his proposals can get anywhere. So he has said he's done this with other things he -- said look I'm gonna. Even -- it has to be limited action -- -- do -- I can't without congress because congress won't won't support and a lot of these things so I think that we know the script at this point we're gonna hear a lot of the usual belly aching. But it's not gonna it's not gonna stop this from going forward he has the authority to do this in a regulatory fashion. And there will end up being some kind of regulation the question is will it be similar to these targets we're seeing at the outset -- will these -- dialed back some -- -- OK so are -- to take him aside the politics look at the economics of this. I want to take a look this is where electricity comes from in the United States here let's -- that -- 37 -- from -- 30% are natural gas mean both the significant power sources there. Solar energy wind energy. They seem to be that was -- would benefit the most from this kind of regulation -- time. I think it's natural gas is what is really where the tipping point is. And that it you know it's interesting and we that is already -- this has already been happening and can not because of any regulation out of Washington it's simply because of the market. Because of new technology such as fracking because of this huge energy bill which a lot of energy experts say is what is only getting started it's going to be a lot more significant than it is now. So we've already seen this tilt away from coal in favor of natural gas. Largely because natural gas is cheaper and has fewer problems. And it's clear I mean there are benefits to having cleaner fuel. Other than just the air I mean it's it's a cost of living issue are rather quality of life issue a lot of places. So we've already seen this -- what Obama's really kind of drafting behind what's already happening in the market place. Basically what he's saying is I want to keep this going in the direction it's been going more gas and cleaner energies last call I just wanna speed it up a little bit. It puts some definitive targets on on ground so we can meet these things so what do we expect that from movements on the market today from this kind of announcement. Without a doubt utilities that are heavily. Invested in coal are likely to suffer their coal miners who are likely to suffer the Kola mining companies. It's not I don't think it's necessarily that the death knell for the coal industries we've been hearing because. There's a very important overseas market for call. -- it partly in Europe and partly in other parts of the world so one thing that we might see out of this is more exports of US call. But -- -- the real thing to look for here is it's this really puts. Emphasis on. The natural gas sector to meet in increasing. Amount of the nation's energy needs in the future so it's basically just saying you know natural gas is more important than an it's ever been to US economy. We'll have to wait and see how that's all gonna play -- that of course Washington had a big impact as usual. On the economy Rick humor from Yahoo! finance Rick thank you have a good Monday to -- and theater and of course you give up latest headlines right here on abcnews.com. You've been watching the big number. And then -- -- in New York.

This transcript has been automatically generated and may not be 100% accurate.

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