New York Gov. George Pataki (R) signed a controversial bill yesterday that aims to limit pollution drifting into New York from coal-burning power plants in the Midwest and South. The measure will fine New York companies that sell pollution allowances, which they earn by cleaning up their own emissions, to polluting facilities in Midwestern and Southern states. The new law potentially puts New York at odds with the federal Clean Air Act of 1990, and the state’s utility industry is calling the law illegal and may challenge it in court. Enviros applauded Pataki for signing the legislation, and also praised him for signing another bill that bans use of the fuel additive MTBE, a possible carcinogen which has contaminated water supplies throughout the country.