Recent Projects

We recently filed, in a case before the Supreme Court, a brief on the role of ancillary and unquantified benefits in cost-benefit analysis for environmental policy. The Fish and Wildlife Service, in declaring critical habitat designation areas for the dusky gopher frog, decided to not exclude some private land from the designation after qualitatively assessing the direct and indirect costs and benefits of the designation.

In 2016, the Department of the Interior’s Office of Natural Resources Revenue (ONRR) issued the Consolidated Federal Oil & Gas and Federal & Indian Coal Valuation Reform (Valuation Rule). The Valuation Rule sought to ensure that states and the federal government receive the full value of royalties due under the law for oil, gas, and coal extracted from public land. In 2017, ONRR abruptly reversed course and repealed the rule. State attorneys general have now sued ONRR over the repeal and filed a motion for summary judgment. In our brief supporting the plaintiffs, we argue that ONRR did not provide a reasoned explanation for repealing the Valuation Rule, both because ONRR fails to accurately assess the repeal’s economic impact and because ONRR fails to provide a reasoned explanation for its abrupt change in course.

Our policy director, Jayni Hein, published a new op-ed in U.S. News & World Report on the Interior Department’s failure to protect the public interest in fossil fuel leasing decisions. In addition, she submitted the op-ed as public comments to Interior’s Royalty Policy Committee and gave verbal remarks at its meeting on June 6, 2018. Hein argues that Interior is required by law to earn “fair market value” for the use and development of public natural resources, and that providing royalty rate reductions and other undue concessions would inappropriately transfer public revenue to fossil fuel industry stakeholders.

EPA’s Science Advisory Board provides independent scientific guidance to the Agency. Our oral comments to EPA’s Science Advisory Board encourage the Board to review the science and economics behind EPA’s proposed deregulatory actions. We ask the Board to consider our recent paper on the full value of reducing particulate matter (PM) pollution in evaluating the benefits of reducing PM below the current National Ambient Air Quality Standards. Our comments also ask the Board to review EPA’s manipulation of economics in order to downplay the climate harms of its deregulatory actions. Specifically, we discuss manipulations of the 2016 Interagency Working Group’s Social Cost of Carbon estimates. We argue that EPA’s new “interim” estimate for the Social Cost of Carbon ignores the global nature of climate damage and obscures the devastating effects that climate change will have on future generations, and we strongly encourage review of the methods used to reach this new “interim” estimate.

Under Secretary Betsy DeVos, the Department of Education has delayed implementation of the Borrower Defense Rule three times. This 2016 regulation was designed to help students who have been defrauded by for-profit educational institutions discharge their federal student loans. In our amicus brief to the U.S. District Court for the District of Columbia, we argue that the delays must be vacated because the Department failed to provide a reasoned explanation for any of them.

The Environmental Protection Agency and Army Corp of Engineers were sued for suspending implementation of the Clean Water Rule through the addition of an “applicability date” to the Clean Water Rule. Our brief to the U.S. District Court for the Southern District of New York in that case argues that the court should vacate the Suspension Rule because the agencies improperly ignored the forgone benefits of suspending the Clean Water Rule.

In December 2016, pursuant to the Inflation Adjustment Act of 2015, the National Highway Traffic Safety Administration (NHTSA) finalized a rule that adjusted civil penalties for car manufacturers that violate fuel economy standards, in order to line them up better with inflation. That rule put the penalties at $14 per tenth of a mile per gallon. NHTSA is now proposing a new rule to lower the penalties from $14 per tenth of a mile per gallon back to the previous rate of $5.50 per tenth of a mile per gallon, claiming that the $14 penalty would have a significant negative economic impact. Our May 2018 comments argue that NHTSA should explain why it is justified in reducing the penalty from $14 to $5.50 and consider the forgone benefits when considering whether the civil penalties will have a “negative economic impact.” Because NHTSA has not provided this explanation, the proposed reduction is arbitrary and capricious.

In 2015, the United States Environmental Protection Agency (EPA) established minimum criteria for the safe disposal of coal combustion residuals. At the time, EPA projected that the new rule would yield substantial health and environmental benefits. EPA now proposes to weaken the requirements of the 2015 rule but insists that doing so “will not change risks to human health and the environment” and thus will have no effect on the projected benefits of the 2015 rule. Our comments explain why EPA cannot reasonably assume that its proposed changes will have no effect on the 2015 rule’s projected benefits.

As the Environmental Protection Agency (EPA) continues its rulemaking to repeal the Clean Power Plan, we submitted two sets of comments that challenge EPA’s legal and economic arguments for undoing this important climate policy.