The much anticipated proposal was announced on Monday.

The Clean Power Plan is the first to attempt a cut in carbon pollution from existing power plants – the country’s single largest source of carbon, according to the President’s action plan, making up 84% of the nation’s air pollution.

The EPA said Monday’s proposal would “protect public health, move the US toward a cleaner environment and fight climate change, while supplying Americans with reliable and affordable power”

"Climate change, fuelled by carbon pollution, supercharges risks to our health, our economy, and our way of life,” EPA Administrator Gina McCarthy said.

“EPA is delivering on a vital piece of President Obama's Climate Action Plan by proposing a Clean Power Plan that will cut harmful carbon pollution from our largest source – power plants.

“By leveraging cleaner energy sources and cutting energy waste, this plan will clean the air we breathe while helping slow climate change, so we can leave a safe and healthy future for our kids.

“We don't have to choose between a healthy economy and a healthy environment – our action will sharpen America’s competitive edge, spur innovation and create jobs."

By 2030 the EPA plans to:

• cut carbon emission from the power sector by 30% nationwide below 2005 levels;

• cut particle pollution, nitrogen oxides and sulphur dioxide by more than 25% as a co-benefit;

• avoid up to 6,600 premature deaths, up to 150,000 asthma attacks in children and up to 490,000 missed work or school days – providing up to $US93 billion ($A100B) in climate and public health benefits; and

• reduce electricity bills by roughly 8% by increasing energy efficiency and reducing demand in the electricity system.

Industry leaders, unions and government officials have all been quick to speak out in the wake of the proposal.

The National Mining Association has called the proposal deeply “flawed”, while the Pennsylvania governor Tom Corbet expressed his deep concern.

However, coal giant Walter Energy released a statement saying the ruling would have little, if any, negative impact on the company.