The Institute for Policy Integrity produces three types of publications: policy briefs, reports, and academic articles/working papers. Our policy briefs provide incisive and focused analysis on timely policy topics. Our reports develop deeper research on our core issues. Our academic articles and working papers offer original scholarly research and analysis from established experts as well as fresh new voices.
What the Challengers Got Wrong at the D.C. Circuit Oral Argument
On September 27, opponents of the U.S. Environmental Protection Agency’s Clean Power Plan presented their case against the rule in a hearing before the U.S. Court of Appeals for the D.C. Circuit. The Clean Power Plan aims to reduce carbon dioxide emissions from the nation’s existing power plants. A coalition of states, utilities, coal companies, and other industry groups have sought to block the rule since it was first proposed in June 2014, while a competing group of states, municipalities, power companies, environmental and public health organizations, and clean energy producers have intervened to support the EPA. Over the course of the seven-hour hearing, the petitioners challenging the Clean Power Plan asserted and implied a number of things that don’t stand up to scrutiny. This report sets the record straight on some of their more notable misstatements.
Historical Uses and Justifications
Royalties have been used as a policy lever to influence behavior and meet national goals for centuries. For example, royalties have been set at specific rates in order to: encourage resource production; encourage westward expansion; maintain the incentive to create new inventions; and deter socially undesirable behavior, to name just a few. This report concludes that it would be reasonable for Interior to adjust coal royalty rates to account for negative externalities that are not otherwise addressed by regulation. Historical uses, accepted economic justifications, legislative history, and examples of royalty use by private actors and in other industries discussed in the paper all support the determination that it would be reasonable for Interior to increase coal royalty rates to account for externality costs and to better align the federal coal program with national climate change priorities.
How the Clean Power Plan Conforms to Statutory Limits on EPA’s Authority
This policy brief analyzes the limits of the EPA’s Section 111 regulatory authority and determines that the CPP explicitly acknowledges and respects each of the EPA’s statutory constraints. The brief discusses the eight major constraints for emissions guidelines under Clean Air Act Section 111, and examines how the CPP handles each one. The analysis finds no evidence to support petitioners’ accusations that the the EPA exceeded its regulatory authority.