Washington: The US administration on June 13 announced relaxed pollution standards for utilities upgrading old power plants, a move that immediately drew fire from environmentalists.

The Environmental Protection Agency, which announced the new rules, said they would help reduce pollution by allowing older coal-fired power plants to be refurbished without being subject to stricter standards of new facilities.

White House spokesman Ari Fleischer said the existing rules, while intended to curb pollution, in fact had the opposite effect by discouraging owners of power plants from making any upgrades or improvements.

Fleischer said President George W Bush "believes that, as a result of the actions announced today, it will lead to less pollution in the air".

Bush, who was asked by a reporter about critics of the plan who said it would increase pollution, said, "They're absolutely wrong. The resource review reforms, coupled with the (proposed) Clear Skies legislation, will reduce pollution by approximately 70 per cent. This administration is committed to clean air, and we're going to work vigorously to achieve clean air."

EPA Administrator Christie Whitman said the new rules would "encourage emissions reductions" and "has broad-based support".

She said that the existing rules, known as New Source Review, "have deterred companies from implementing projects that would increase energy efficiency and decrease air pollution."

But Sierra Club executive director Carl Pope said the rule change is simply a concession to industry at the expense of the environment.

"These polluters have had decades to clean up their act, but they've just dragged their feet," the environmental group leader said.

"This announcements puts the interests of big energy companies ahead of public health and the environment. Americans want tough enforcement of our environmental laws, but the Bush administration is letting polluters get away red-handed."

"The plan will undermine the Clean Air Act by creating gaping new loopholes that will allow big polluters to increase pollution," said Frank O'Donnell, executive director of the Clean Air Trust.

Phil Clapp, president of the activist National Environmental Trust, said, "This is the end of the Clinton administration's long attempt to force dirty coal-fired power plants to clean up What is really amazing is that the (Bush) administration has made this decision without calculating how much more air pollution it will mean, how many more asthma attacks, or how many more deaths. They simply have no numbers."

The move also drew political heat, as Democratic National Committee chairman Terry McAuliffe said, "In a dog-bites-man moment the Bush administration today sided with the energy industry over the environment."

He added, "Last year, George Bush broke his promise to the American people to reduce CO2 emissions. Today President Bush goes further, encouraging industry to further pollute the air we breathe."

The American Petroleum Institute (API), an industry group, applauded the decision.

"The administration's action ends a period of uncertainty by finalising some and proposing other much needed regulatory changes that should allow industry to maintain and expand facilities in a manner that benefits the environment and consumers," API said.

"The goal should be to assure that significant changes at facilities are reviewed for their air quality impact while not impeding normal operations. Current interpretations of the regulations are overly stringent and can delay needed improvements for safe and efficient plant operation. This proposal will foster energy efficiency, plant safety and modernization of oil and natural gas facilities," they stated.