The Environmental Protection Agency proposed new rules Monday that would cut power plant emissions by 30 percent of a 2005 baseline by 2030.
API President and CEO Jack Gerard said in a response statement the proposal would hurt the U.S. economy.
"The uncertainty created [with these proposals] will have a chilling effect on energy investment that could cost jobs, raise electricity prices and make energy less reliable," he said in a statement Monday.
The EPA's proposal gives state governments the right to find the policies needed to meet the 2030 benchmarks. EPA Administrator Gina McCarthy said the proposal would help, not hurt, the economy.
"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," she said in a statement.
With emissions from coal-fired power plants causing widespread health problems across the country, Amanda Starbuck, climate program director for the Rainforest Action Network, said the EPA's action was a step in the right direction.
"To keep our climate stable, we must rapidly shift our energy production away from the highest-polluting fossil fuels and accelerate our transition to truly clean, renewable energy generation," she said.