The Environmental Protection Agency has said that it is revising proposed rules for the coal industry from the previous years after stiff opposition from the industry players.

The coal-intensive utilities and coal-producing regions have said that the environmental laws would effectively ban the construction of new power plants using the fuel. According to the people closer to the matter, the new rules that are currently under review by White House officials and scheduled for release next week, will be different from the current proposal.

The EPA has stood firm in the force of intense lobbying campaign by industry and has made it mandatory for new coal plants to install expensive carbon-capture technology to lower the environmental impact of the plants. Alisha Johnson, a spokeswoman for the EPA did not offer any comments on the matter.

The Obama administration is looking to lower carbon dioxide emissions and has asked the EPA to work to cap the carbon dioxide from power plants that account for about 40 per cent of the total US emissions. The proposal will set up rules for the new plants in the country.