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Comments on California’s Distributed Energy Resources Policy
The California Public Utilities Commission (CPUC) is developing a comprehensive policy for integrating Distributed Energy Resource (DERs), like rooftop solar, into its energy system. A March 2018 administrative law judge ruling heavily cited our earlier comments in laying out a revised plan to require the state’s utilities to conduct a societal cost test to help compare the net benefits of different DER technologies. We submitted comments to the CPUC commending the agency for its revisions to the proposed analysis and recommending additional improvements.
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Environmental Standards, Thresholds, and the Next Battleground of Climate Change Regulations
Regulations to curtail climate change have the additional benefit of reducing air pollution by accelerating the shift away from carbon-intensive and high-polluting energy such as coal. The benefits from reducing just one air pollutant – particulate matter – account for almost half of the quantified benefits of the Obama Administration’s Clean Power Plan. Regulatory opponents have launched an aggressive attack on the use of these benefits to justify climate change regulations. They claim that these benefits are not real, are accounted for in other regulations, or should not be considered because they are indirect benefits. This article, published in the Minnesota Law Review, collects and analyzes for the first time the robust support for valuing particulate matter and other air pollution reduction benefits. Following an examination of the scientific literature, longstanding agency practices under administrations of both major political parties, and judicial precedent, the authors conclude that particulate matter benefits deserve a meaningful role in regulatory cost-benefit analysis.
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Comments to Virginia on Its Proposal to Join the Regional Greenhouse Gas Initiative
The State of Virginia is proposing to join the Regional Greenhouse Gas Initiative (RGGI), a carbon trading program currently including states across the Northeastern U.S. Including Virginia energy producers in RGGI will greatly expand the scope of the carbon market, thereby improving market efficiency, competitiveness, and lowering carbon abatement costs. Our comments to Virginia on its proposal offer two suggestions to ensure that Virginia’s addition to RGGI creates a competitive permit trading market.
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Joint Comments on the Midcontinent Supply Header Interstate Pipeline
We recently submitted joint comments with EDF and Sierra Club to the Federal Energy Regulatory Commission on the draft environmental impact statement (DEIS) for the Midcontinent Supply Header Interstate Pipeline. The analysis covers a proposal to construct over 200 miles of pipeline, as well as compressor stations, a booster station, and accompanying facilities, to transport natural gas. The DEIS quantifies the tons of downstream greenhouse gas emissions related to this project—over 28 million metric tons of carbon dioxide per year—but FERC fails to use the social cost of greenhouse gases metric to fully account for the climate effects of these emissions. FERC’s failure to adequately consider climate damages from the pipelines it approves is under increasing scrutiny. Our comments offer a detailed rejection of FERC’s rationale for excluding the social cost of greenhouse gases from this analysis, and give FERC additional guidance on how to monetize climate effects consistent with the currently best available science and economics.
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Comments on Regulatory Impacts Draft Report to Congress
The Office of Management and Budget’s (OMB’s) annual reports to Congress not only compile all the significant benefits and costs of federal regulations, but they also offer federal agencies and academics an up-to-date summary of the literature on key practices in regulatory impact analysis. As such, OMB’s annual reports should reflect the most comprehensive syntheses of the legal and economic literature on these analytical practices. Our comments on OMB’s draft report for 2017 propose two additions to its summaries of the literature on job impact analysis and on co-benefits analysis
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Amicus Brief on New York’s Zero Emissions Credits and the Social Cost of Carbon
In 2016, the New York Public Service Commission adopted the Clean Energy Standard, an ambitious plan to increase renewable generation to 50% of the market by 2030. While working toward that goal, the State found it was necessary to pay nuclear generators through a zero-emissions credits (ZECs) system, as compensation for the value they provide in avoiding emissions. The State found that this would help guard against an increase in pollution if the nuclear generators were to close. Our amicus brief to the Supreme Court of New York in Albany County argues that the Commission’s decision to base ZEC prices on the Social Cost of Carbon (SCC) was reasonable.
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Brief to Forest Service on Expansion of Colorado’s West Elk Coal Mine
The U.S. Forest Service continues to ignore climate damages in its final approval of a coal mine expansion in Colorado, despite a court ruling that asked the Forest Service to disclose the effects of greenhouse gas emissions from the expansion. In its final environmental impact statement (EIS) on the project, Forest Service quantifies how much the expansion will increase greenhouse gases emissions but only gives a generic description of climate change and its effects. By not quantifying and monetizing the effects of this increase in emissions, the EIS obscures information necessary for the public to appreciate how the expansion will result in hundreds of millions of dollars in climate damages. Our brief to the District Court of Colorado argues that Forest Service’s failure to monetize climate impacts was arbitrary and is still in violation of the National Environmental Policy Act.
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Comments on Provider Conscience Rule
The Department of Health and Human Services (HHS) recently proposed a rule purporting to clarify the scope of statutory protections for medical providers who decline to participate in certain procedures, such as abortion or euthanasia, due to religious or moral objections. HHS issued a similar rule in 2008 but rescinded it in 2011 due to concern that the 2008 rule’s expansive definitions of statutory terms would lead providers to believe, incorrectly, that statutory protections extended not just to refusals to perform particular procedures, but also to refusals to care for particular types of patients, such as LGBTQ individuals. Our comments criticize HHS for reviving the 2008 rule’s expansive definitions without acknowledging its 2011 findings that such definitions would foster confusion and discrimination.
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Comments on Department of Energy’s Energy Conservation Standards Program
The Department of Energy (DOE) requested information on adding market-based compliance flexibilities to its Appliance and Equipment Energy Conservation Standards (ECS) Program. In many cases, market-based flexibilities lowered compliance costs, incentivized innovation, and decreased administrative burdens without sacrificing policy objectives. But in other cases, these policy tools may not improve economic efficiency and may actually undermine policy objectives. Comments from our Legal Director, Jason Schwartz, recommend that DOE should only proceed with market-based flexibilities after balancing gains to efficiency against unintended negative consequences to policy goals, and that better energy labels on appliances may be necessary to help prevent consumer confusion caused by the market system.
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How the Trump Administration Is Obscuring the Costs of Climate Change
When federal and state policymakers account for the impacts of climate change, they regularly use a tool called the Social Cost of Carbon (SCC). The SCC puts a dollar value on the most significant, quantifiable damages caused by each additional ton of carbon dioxide emitted. The most recent estimate of the cost is at least $51 per ton and rising over time. But now, turning its back on years of work, the Trump administration has disbanded the federal group that developed the SCC, and produced a new “interim” estimate claiming that each ton of carbon dioxide causes as little as $1 in climate damages. This issue brief describes how the Trump Administration reached this misleading number by ignoring the interconnected, global nature of our climate-vulnerable economy and obscuring the devastating effects that climate change will have on younger and future generations. Though the administration has been proposing rollbacks of environmental rules using this problematic SCC estimate as justification, we explain why federal agencies and state governments should continue using the most recent estimate by the Interagency Working Group that developed the SCC.