The rule aims to protect 6,500 miles streams across US over a period of 20 years.
The stream protection rule will update 32-year-old mining rules by making it mandatory for coal companies to test and monitor the condition of streams that might be impacted from their mining activities.
US Interior Department also said that coal companies will also have to restore streams and return mined-over areas in a condition that they were in prior to mining activities by planting native trees and vegetation.
The proposed rule is also meant to keep pace with current science, technology, and modern mining practices, the department said.
US Interior Department Secretary Jewell said: "This proposed rule would accomplish what Americans expect from their government – a modern and balanced approach to energy development that safeguards our environment, protects water quality, supports the energy needs of the nation, and makes coalfield communities more resilient for a diversified economic future.
"We are committed to working with coalfield communities as we support economic activity while minimizing the impact coal production has on the environment that our children and grandchildren will inherit."
