environmentalists' proposals

In contrast to environmentalists' proposals to limit emissions of certain pollutants, the administration proposed calling for mandatory restrictions of only three such pollutants from power plants-mercury, sulfur dioxide, and nitrogen oxides-and the plan would delay such cuts until 2010 or later.

A. administration proposed calling for mandatory restriction of
B. administration proposed a call for mandatory restrictions, including those for
C. administration, proposing mandatory restrictions on
D. administration's proposal was a call for mandatory restrictions, which include
E. administration's proposal would call for mandatory restrictions on

First of all, you're right to eliminate A, B, and C, because they have an illogical comparison:

In contrast to environmentalists' proposals to limit emissions of certain pollutants, the administration proposed...

We must compare "proposals" to "proposals," not to the administration itself.

You're right that D is wordier than E, but that is rarely the only justification to eliminate an answer choice. The primary reason is PARALLELISM:

Consider each sentence in its entirety:

D. In contrast to environmentalists' proposals to limit emissions of certain pollutants, the administration's proposal was a call for mandatory restrictions, which include only three such pollutants from power plants-mercury, sulfur dioxide, and nitrogen oxides-and the plan would delay such cuts until 2010 or later.

E. In contrast to environmentalists' proposals to limit emissions of certain pollutants, the administration's proposal would call for mandatory restrictions on only three such pollutants from power plants-mercury, sulfur dioxide, and nitrogen oxides-and the plan would delay such cuts until 2010 or later.

E is clearly more parallel.

I would also argue that D contains a slight meaning difference:

"... mandatory restrictions, which include only three such pollutants..." implies that there might be lots of restrictions on other things, but only 3 on pollutants.

"... mandatory restrictions on only three such pollutants..." implies that the only restrictions we're talking about are those 3.

Hope this helps.

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