Will New Carbon Limits Put Cap on Coal Industry?

President Barack Obama has announced plans to slash U.S. carbon emissions 30 percent by 2030.

The president decided to act on his own since Congress has failed to enact so-called cap and trade legislation to control emissions.

"The time to act is now," Environmental Protection Agency Administrator Gina McCarthy admonished.

The president said excessive carbon dioxide emissions are causing global warming and a national health crisis.

"In just the first year that these standards go into effect, up to 100,000 asthma attacks and 2,100 heart attacks will be avoided - and those numbers will go up from there," the president said.

***Do these new regulations signal the death of the American coal industry? Phil Kerpen, president of American Commitment, addressed this question and more on CBN Newswatch, June 2.

But some Republicans and Democrats say the president's plan amounts to a war on coal and the U.S. economy since it would require power plants to switch from coal to natural gas, or utilize more renewable forms of energy.

The revised federal standards are expected to take a toll on American workers and their pocket books.

According to the U.S. Chamber of Commerce, the change will lead to the loss of 224,000 jobs each year for the next 16 years. The annual cost to the U.S. economy is projected to be $51 billion.

"Environmental regulations that are coming into effect will retire 60 percent of today's coal fleet," said Karen Harbert, president and CEO of the Chamber's Institute for 21st Century Energy.

Because 40 percent of the nation's electricity comes from coal, the shift away from it will mean higher electricity costs for American consumers.

Hoping to lessen the blow to their economies, several energy-producing states have already moved forward with their own programs.

States will have until June 2016 to submit their carbon reduction plans to the EPA.

Meanwhile, many Democrats up for re-election this fall, especially in coal and oil states, are expected to distance themselves from the president's decision.