Newsletters

May 3, 2024

• 

  Answering Key Questions About EPA’s New Power-Plant Rules

  EPA recently finalized a package of four new, hotly anticipated rules aimed at reducing harmful pollution from power plants, including new regulations to limit greenhouse gas (GHG) emissions from existing coal- and new gas-fired power plants. We published a pair of policy briefs digging into two key issues that will likely animate debates and litigation over the rules going forward. One brief analyzes how the new rule comports with EPA’s history of issuing technology-forcing regulations based on demonstrated technologies. The new rule's stringency is partially based on reductions achievable through carbon capture and sequestration (CCS). We explain why CCS meets the “adequately demonstrated” legal standard applied to similarly evolving technologies since the 1970’s regardless of how common CCS is in the power sector today. Our other policy brief focuses on how EPA’s use of CCS in the rules fits within the wheelhouse of one of its most traditional and well-established regulatory practices: setting emission limits based on pollution controls that cause a regulated source to operate more cleanly. By embracing this traditional practice, the rule avoids implicating the major questions doctrine as articulated in West Virginia v. EPA.

• 

  The Latest in Our Efforts to Strengthen Consumer Protections

  Building on our successful advocacy in favor of banning hidden fees, Policy Integrity was involved in two important consumer protection regulatory proceedings this month. First, we submitted comments to the Consumer Financial Protection Bureau (CFPB) on its proposal to regulate overdraft credit from very large financial institutions. Overdrafts are essentially small, temporary loans, but – when you factor in the massive fees institutions normally charge – they carry an astronomical de facto interest rate. The proposed rule would give institutions a choice: lower overdraft fees to a sensible level, or comply with the disclosure requirements otherwise imposed on credit products. Our comments argued that the rule reflects a well-reasoned approach, and we made some suggestions for how CFPB can improve its analysis of the proposal. Second, the Department of Transportation (DOT) issued a final rule on airline ticket refunds, which, among other things, will require airlines to refund passengers when significant changes are made to their itineraries, and to give passengers a ticket voucher if a serious communicative disease prevents them from flying. DOT’s finalized analysis of this rule discusses our 2022 comments extensively and implements many of our suggestions.

• 

  Can Regulation Help Carbon Offset Markets?

  For both consumers buying flights and businesses trying to meet climate goals, carbon offsets may seem like a convenient way to counteract emissions-intensive activities. But do they actually represent real emissions reductions or removals? In a new blog post, our Erin Shortell explains that many if not most fall short of what they promise. Nevertheless, she notes that “carbon offsets may be necessary to provide financing for important projects or address emissions from hard-to-decarbonize sectors, like air travel.” So, how can we bring some much-needed integrity to this important sector? Shortell suggests that federal regulation may be the answer. Recently proposed guidance on offset-based derivatives from the U.S. Commodity Futures Trading Commission represented a “step in the right direction,” but, as we pointed out in comments, it applies only to a tiny derivatives market, which – as of November 2023 – had only three ongoing contracts. Despite their shortcomings, carbon offsets are growing in popularity. Smart, effective regulation is needed to ensure that growth doesn’t lead to false progress on emissions reductions. 

• 

  5/13 Webinar: Energy Access and Equity Research

  The energy transition is an economy-wide undertaking, and it will have wide-ranging impacts on supply chains, energy prices, and the job market. Researchers are currently working to better understand the distributional impacts of our changing energy system and how we can avoid placing disproportionate burdens on certain communities already bearing the brunt of harmful pollution and climate change. On May 13th, we will host a webinar featuring Dr. Jonathan Colmer of the University of Virginia, Dr. Anissa Dickerman of Pecan Street Inc., Dr. Diana Hernández of Columbia University, and Dr. Benjamin Sovacool of Boston University who will discuss their ongoing projects in this area. We will also hear remarks from Jon Binder, the New York State Department of Environmental Conservation’s Deputy Commissioner for Climate Change, Air Resources, and Energy, who will discuss his current work and his views on what kind of equity-focused research is most helpful and necessary for policymakers. Click here for more information!

• 

  April Events Recap

  This was a busy month for events at Policy Integrity. Here are some highlights:

  • We co-hosted a webinar with the Initiative on Climate Risk and Resilience Law that focused on “The Potential Role of Federal Regulation in Voluntary Carbon Markets.” View a recording of the event here.
  • We co-hosted “Electric Transmission and the Energy Transition - Perspectives From Africa, Europe, and North America” with the European University Institute’s Florence School of Regulation. View a recording of the event here.
  • Policy Integrity and the Washington Center for Equitable growth hosted an informational webinar for economists on “The Role of Economics in Federal Regulatory Advocacy.” View a recording of the event here.
  • Our webinar on “Electrification in Buildings and Communities,” featured discussion of cutting-edge research on the impact from and barriers to resilient, equitable electrification, and the role of policy in addressing those issues. This was the third webinar in our series highlighting energy and environmental research funded by the Alfred P. Sloan Foundation. View a recording of the event here.

• More from This Month

  • Our executive director, Dr. Burçin Ünel, and senior economist, Dr. Christoph Graf, published their paper entitled “Multi-Objective Transmission Expansion: An Offshore Wind Power Integration Case Study.”
  • Recommendations from our comments were reflected in the Department of Energy’s Transmission Permitting Rule.
  • We submitted comments to:
    • The Army Corps of Engineers on its Agency Specific Procedures to Implement the Principles, Requirements, and Guidelines for Water Resources Investments.
    • The New York State Department of Environmental Conservation and NYSERDA on their Draft Climate Act Disadvantaged Communities Investment and Benefits Reporting Guidance.
    • The Montana Public Service Commission on a petition for rulemaking on consideration of climate impacts