"Obama Said to Consider Power-Plant Rule That Tests Law"

"The Obama administration is considering cutting greenhouse-gas emissions from power plants by reaching beyond the plants themselves -- an unusual approach that could run afoul of anti-pollution laws.

People familiar with the discussions say the administration is seeking steep reductions -- as much as 25 percent -- that could be met if power plant owners expand renewable energy, improve the efficiency of their grids or encourage customers to use less power.

There’s disagreement even within the administration about what’s allowable under the Clean Air Act, the law that gives it the authority to curb emissions. Some administration attorneys are warning that the government could lose a legal challenge if it seeks to regulate beyond a plant’s smokestack, said the people, who spoke on the condition of anonymity because the rule is still being written."

Mark Drajem, Jim Snyder and Jonathan Allen report for Bloomberg News May 16, 2014.