Coal exports will become more important to the US coal market. By 2035 about 37% of US coal production (adjusted for energy content) will be exported. However coal will increasingly be exported from the US Gulf Coast rather than the West coast as previously forecast. Competition with natural gas coupled with regulation are limiting the use of coal in the US. While legislation regulating mercury and acid gas emissions from power plants was dealt a blow earlier this year its impact has already been felt on coal industry. This is because many coal fired power plants have already closed or invested to comply with the regulation. While this analysis does not include the impact of the Clean Power Plan (CPP) it does assume a generic carbon prices of (real 2015) US$ 11.75 per metric tonne starting in 2020. The carbon price then escalates by about 6% per year.