The agency is pushing for a 30 percent reduction in emissions by 2030 compared to 2005 levels.
The proposal comes as President Obama renews his commitment to clean up the air before leaving office, combating climate change and reducing the asthma attacks and other respiratory illnesses caused by pollution.
Republicans, meanwhile, are accusing the president of launching "a war on coal".
"We're going to handicap ourselves and kill jobs and opportunity," Senate Minority Leader Mitch McConnell said in reaction to the proposal.
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