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Détente from the Air
Monitoring Air Pollution during the Cold War
During the period of détente in the 1970s, a Norwegian proposal to construct an air pollution monitoring network for the European continent resulted in the first concrete collaboration between the communist and capitalist blocs after the 1975 Helsinki Accords. Known as the “European-wide monitoring programme” or EMEP, the network earned considerable praise from diplomats for facilitating cooperation across the Iron Curtain. Yet as this article argues, EMEP was strongly influenced by the politics of détente and the constraints of the Cold War even as it helped to decrease tensions. Concerns about national security and sharing data with the enemy shaped both the construction of the monitoring network and the modeling of pollution transport. The article proposes that environmental monitoring systems like EMEP reveal the ways in which observational technologies can affect conceptions of the natural world and the role of science in public policy.
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Coal Royalties
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.
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Comments on New York State Benefit Cost Analysis Handbooks
We recently submitted reply comments to the New York State Public Service Commission on Benefit Cost Analysis Handbooks submitted to the Commission by utility companies, within the Reforming the Energy Vision proceeding. Benefit-cost analysis will assist in determining the best resource allocations between traditional utility distribution grid investments and distributed energy resources (DER), by allowing for direct comparison. These Handbooks will help ensure that the utilities’ benefit-cost analyses will help to select investment options that will maximize net benefits to the public.
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Bounded Regulation
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.
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Comments on NARUC’s Distributed Energy Resources Compensation Manual
As distributed energy resources (DER) become more common and play a larger role in helping meet clean energy targets, many states are increasing their focus on the valuation and compensation of these resources. The National Association of Regulatory Utility Commissioners (NARUC) is creating a manual to assist states with these key policy questions. We recently submitted comments to NARUC’s Staff Subcommittee on Rate Design to help ensure that the manual is complete, accurate, and unbiased.
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Think Global
International Reciprocity as Justification for a Global Social Cost of Carbon
U.S. climate regulations present a special case of federal agencies applying a global, rather than exclusively domestic, perspective to the costs and benefits in their regulatory impact analyses. Since 2010, federal agencies have emphasized global valuations of climate damages for policies that affect carbon dioxide emissions, using a metric called the “Social Cost of Carbon.” More recently, agencies have also begun to use a global valuation of the “Social Cost of Methane,” for methane emissions. Yet lately, these global metrics have come under attack in courtrooms and academic journals, where opponents have challenged the statutory authority and economic justification for global values. This paper defends a continued focus on the global effects of U.S. climate policy, drawing on legal, strategic, and economic arguments.
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Federal Court Supports Use of Social Cost of Carbon
On August 8, 2016, the Seventh Circuit handed down its opinion in Zero Zone, Inc. v. United States Department of Energy, upholding the agency’s use of the social cost of carbon (SCC) in its regulatory impact analysis of commercial refrigerator energy efficiency standards. The ruling may have paved the way for a new chapter in economically efficient U.S. climate policies, and our brief for the case was acknowledged in the judges’ opinion.
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Brief for Challenge to Ozone Standard
The U.S. Court of Appeals for the D.C. Circuit will soon hear arguments in Murray Energy Corp. v. U.S. E.P.A., challenging the EPA’s revised ozone National Ambient Air Quality Standards (NAAQS). Policy Integrity has submitted an amicus brief in support of the EPA for this case.
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Self-Bonding in an Era of Coal Bankruptcy
Recommendations for Reform
Federal law requires coal companies to reclaim and restore land and water resources that have been degraded by mining. But at many sites, reclamation occurs slowly, if it all. Mining companies are required to post performance bonds to ensure the successful completion of reclamation efforts should they become insolvent, but regulators have discretion to accept “self-bonds,” which allow many companies to operate without posting any surety or collateral. As the coal industry experiences financial distress and coal companies declare bankruptcy, the viability of future reclamation work is endangered. This report offers recommendations to help regulators better assess coal companies’ financial health and take steps to curtail self-bonding.
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New York State Clean Energy Standard Final Order
In 2015, New York State announced its Clean Energy Standard, an ambitious mandate to boost clean energy. We have submitted numerous comments to the New York State Public Service Commission, suggesting several changes in the design of this Standard to ensure that the state’s policy goals can be met in the most-cost effective manner. In its final order, the Commission adopted several of our suggested changes. Most notably, the Commission relied on our comments in deciding to calculate zero-emission credit payments based on the Social Cost of Carbon. This marks a major success in our ongoing efforts to encourage government agencies to use the Social Cost of Carbon as a tool when designing policy.