US revised 2015 Climate Rules will hit railroads hard as soon as 7 years…by 2022

An important Coal background report from Bloomberg, Aug 1, 2015

The Obama administration has reduce the differences among state goals in a landmark climate change rule, addressing complaints from states such as Arizona and Florida… Selectively, this add further pressure to the long term profitability issues senior railroad managers face.

Rail freight commodity mix is going to change significantly as a result.

This is a good topic for upcoming U.S. Railroad forums and possible marketing lessons for students seeking to enter the rail industry.

A few Highlights:

According to Bloomberg sources, the new rules from the Environmental Protection Agency will force cuts in greenhouse gases from power plants. It is to be the centerpiece of President Barack Obama’s plan to address global warming.

US power plants burning coal produce almost 40 percent of the United States electricity, and release the most carbon dioxide for every kilowatt generated.

Each state will have to submit plans to the agency by 2018 on how it will achieve the EPA-mandated goal, which begin to bite in 2022 and phase in through 2030.

Coal-Heavy States

The EPA’s initial proposal would have forced states like Arizona, which have a lot of natural-gas plants and scope for renewable power growth, to make cuts in emissions of more than 50 percent by 2030. …the coal-heavy states such as Kentucky, West Virginia, Wyoming and Montana faced cuts of 21 percent or less.

Under the scheduled new rules, EPA is tweaking its forecasts for the amount of natural gas and renewable energy growth it estimates can be accomplished in those states…

The White House claims that… …the final plan will be stronger than what was proposed in 2014.

How this will hurt individual coal hauling railroads financially is not yet predicted.

To read the entire article, go to http://bloom.bg/1E03Zyt

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