Ahead of the release of the rules on September 20, information about their scope has been leaked by people who have been briefed on the plan.

According to Bloomberg, a person familiar with the plan said the agency planned to prevent new coal-fired power plants from being built unless they were installed with carbon capture and storage technology.

EPA spokeswoman Alisha Johnson declined to comment on the specific numbers but told The Wall Street Journal that the agency was working on the rule, which was being revised from an original 2012 proposal, "in light of important comments received by the agency and in a way that considers the viewpoints of all stakeholders".

American Coalition for Clean Coal Electricity president and chief executive officer Robert Duncan said the EPA rule was overreaching.

“If reports are true, the EPA is set to issue a rule that will completely halt the development of new coal-fueled plants by requiring they meet unachievable carbon standards,” Duncan said.

“The American people should not be fooled.

“If the EPA overreaches, its actions could drastically reduce our nation’s fuel options, risk tens of thousands of jobs and destroy – not encourage – the development of new carbon capture and storage technology.

“We stand with millions of American consumers, businesses and workers who depend on reliable, affordable electricity generated from coal.

“America deserves a balanced energy plan that includes continued advancements in clean coal technology, not one that crushes innovation and guarantees a diminished economic future.”

West Virginia Senator Joe Manchin has said he is prepared to take legislative action to fight the possible rule.

“It is simply unacceptable that the EPA chooses to hold coal and gas to the same emissions standards when experts know it is technologically impossible,” Manchin told the Wall Street Journal, warning of “devastating effects on our coal production”

“If the EPA tries to overreach, I will do everything I can to fight to protect coal power plants, including introducing additional legislation,” he added.

“This is just another battle I will lead in the EPA’s war on coal.”