Recent Projects

As part of a larger plan to revise regulations on tobacco and nicotine, the U.S. Food and Drug Administration (FDA) is considering limiting the nicotine content of combusted cigarettes in an effort to make them less addictive. In response to FDA’s advance notice of proposed rulemaking on this potential policy, our comments offered advice, drawing from recent economic scholarship, on how the agency could assess a nicotine limit’s costs and benefits.

PJM Interconnection (PJM), the electric grid and wholesale market operator in 13 states and Washington D.C., currently has a market design that leads to over-procurement of electric generating capacity, particularly from generation resources that are able to provide capacity throughout the year. This inefficient market design raises capacity costs and suppresses the participation of resources, such as wind, solar, and natural gas, whose generating capacity varies by season. The Federal Energy Regulatory Commission (FERC) recently held a technical conference to seek feedback on how PJM can redesign its capacity market to better facilitate participation of these seasonal resources. Our comments to FERC argue that replacing or supplementing the current annual-only capacity product with seasonal capacity products would improve the efficiency of the PJM capacity market. In addition, we suggest changes in the capacity market participation rules for wind, solar, and other intermittent resources.

New York State is seeking to refine its method for compensating distributed energy resources (DERs) based on the value that they provide, including their potential to reduce local air pollution and greenhouse gas emissions. Together with a group of government agencies, non-governmental community and environmental organizations, academic centers, and clean energy businesses, we submitted a report that describes the work of an informal, stakeholder-led Environmental / Environmental Justice Value Subgroup, which was formed to identify methods for calculating the environmental and public health value of avoided air pollution caused by DER injections in New York State. As part of that filing, we also submitted our report, Valuing Pollution Reductions, which serves as a general guide for state regulators interested in calculating the environmental and public health value of avoided air pollution caused by DER injections.We also presented the results of this report to NYS DPS Staff.

The Department of the Interior is proposing to extend leasing and operations at New Mexico’s San Juan mine by 15 years, producing up to 53 million additional tons of coal that will release 97.5 million tons of greenhouse gas emissions when combusted. In our comments to Interior on its draft environmental impact statement (DEIS) for the mine’s lease extension, we criticize Interior’s failure to fully account for the climate effects related to the project by monetizing the damage these emissions will cause. This refusal leaves the public and decisionmakers in the dark about the climate effects of the project, and is arbitrary given that the agency relies on the project’s monetized benefits to justify its action.

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.

As the Bureau of Land Management (BLM) considers opening Alaska’s Arctic National Wildlife Refuge for oil and gas leasing, pursuant to language in the 2017 Tax Act, our comments explain that development of oil and gas in the Arctic Coastal Plain would pose serious threats to this delicate, pristine ecosystem. In preparing an Environmental Impact Statement (“EIS”) for this potential lease sale, BLM must consider the many factors that weigh strongly against any leasing or development in the Refuge.

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.

New York State is considering setting a procurement goal of 2,400 MWs worth of new offshore wind generation facilities by 2030. In our comments to the New York Public Service Commission, we encourage the Commission to continue the use of the Social Cost of Carbon to value the benefits of avoiding greenhouse-gas emissions in the state’s Offshore Wind Policy. We also explain that the proposal to pay for the benefits of offshore wind outside of the wholesale markets is a reasonable way to move closer to internalizing the external costs of carbon-dioxide emissions and other pollution.