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Policy Integrity Amicus Brief Cited Extensively in BLM Drilling Case
We filed an amicus brief in a case challenging the Bureau of Land Management's approval of over 300 oil and gas drilling permits in New Mexico. Our brief highlighted problems in the agency's analysis, which inappropriately minimized the climate impacts of new drilling through comparison to nationwide totals. We explained that the agency’s approach did not facilitate a rational analysis of the project's climate effects and failed to meet the National Environmental Policy Act’s requirement that agencies analyze the actual environmental impacts of their actions. In its decision ruling against the agency, the U.S. Court of Appeals for the Tenth Circuit cited our brief extensively and adopted many of our arguments against BLM’s comparison-based approach to assessing the significance of climate impacts.
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Comment Letter on BLM Waste Prevention Rule
In November, the Bureau of Land Management proposed a regulation to reduce the waste of natural gas on federal lands through venting, flaring, and leakage. In our comment letter, we recommend avenues for BLM to bolster its legal and economic support for the proposal. In particular, we recommend that BLM more expressly disavow its prior position that waste-prevention regulations must benefit regulated industry, more closely evaluate the proposal’s effects to ensure that its analysis fully captures resulting benefits and royalty revenues, and recognize the significance of the rule’s climate benefits.
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Comments to SEC on Major Questions Doctrine
In June 2022, the Institute for Policy Integrity jointly submitted three comments to the Securities and Exchange Commission regarding its Proposed Rule on the Enhancement and Standardization of Climate-Related Disclosures for Investors. One of those comments highlighted regulatory precedents reaching back nearly sixty years that support the SEC's approach in the Proposed Rule. On January 30, 2023, we submitted as supplemental comments a recent article from Natasha Brunstein and Donald L. R. Goodson, Unheralded and Transformative: The Test for Major Questions After West Virginia, forthcoming in the William and Mary Environmental Law and Policy Review, which analyzes the Supreme Court’s decision in West Virginia v. EPA, 142 S. Ct. 2587 (2022). This new article bolsters the relevance of the regulatory precedents cited in Policy Integrity's previous joint comments as support for the Proposed Rule.
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Electricity Tariff Design via Lens of Energy Justice
Distributed Energy Resources (DERs) can significantly affect the net social benefit in power systems, raising concerns pertaining to distributional justice and equity. Current tariff design approaches suffer from opaque efficiency-equity trade-offs and are also agnostic of the externalities that affect both economic efficiency and equity. Therefore, this paper develops a justice-cognizant tariff design framework that improves the operational savings in the system without sacrificing distributional equity, and encompasses economic welfare, social costs of environmental and public health impacts, and socio-economic and demographic characteristics of electricity consumers. We evaluate four different tariff structures using a Multi-Objective Problem with Equilibrium Constraints. We then compare the operational savings and equity of the proposed framework using the 11-zone New York ISO and 7-bus Manhattan power networks. The results demonstrate that justice-cognizant, and spatially- and temporally-granular tariffs ensure equity and increase the operational savings at a lower energy burden to consumers.
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Comments on NRCS Agriculture Funding Strategy
Policy Integrity submitted comments to the U.S. Department of Agriculture's Natural Resources Conservation Service (NRCS) in response to its Request for Information about how it can most effectively distribute its share of Inflation Reduction Act funding. This $19 billion in funding, which is allocated across NRCS's core conservation programs, must be given out to support agricultural practices that reduce or sequester greenhouse gas emissions. Our comments encourage NRCS to award the funding to practices that will maximize net social benefits and to increase the transparency of its project-ranking process. We urge NRCS to consider a range of factors in its analysis, including a practice's potential to reduce greenhouse gas emissions, produce knowledge, and offer ecosystem services.
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Comment Letter Calling for Rescission of DOE Categorical Exclusion Rule for LNG Exports
In response to the Department of Energy’s recent request for information on its categorical exclusions, we submitted a comment letter recommending that the Department rescind its 2020 regulation establishing categorical exclusion B5.7 for discretionary authorizations to export liquefied natural gas. As our comment letter explains, long-term expansion of export capacity may lock in fossil-fuel usage over the long term and thereby impede global decarbonization efforts. Yet when promulgating its categorical exclusion rule, the Department erroneously argued that indirect climate effects are not relevant to its assessment of applications for export authorization, and based its sweeping categorical exclusion on that improper legal conclusion. Our comment letter provides a proper understanding of the Department’s broad authority, which compels the agency to robustly consider impacts on climate change as part of its authorization process.
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Shaping Connecticut’s Energy Storage Strategy
Energy storage can play an important role in a transition to clean energy, but only if it’s deployed within an effective policy framework. The Connecticut Public Utility Regulatory Authority (PURA) adopted our recommendations to target its energy storage incentives to areas with the highest differential between the highest and lowest marginal emissions rates so batteries could ultimately lead to reductions in emissions. In addition, PURA directed the Connecticut Green Bank to review our comments when setting the scope of the program's marketing plan.
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Comments to PUCT on Wholesale Electricity Market Design
The Texas Public Utility Commission (PUCT) requested public input as part of an ongoing effort to ensure the reliability of its wholesale electricity market design following Winter Storm Uri. We submitted comments on how the PUCT can achieve its reliability goals in a manner that ensures just and reasonable rates for consumers. For any new mechanism it may deem necessary, we encouraged the PUCT to choose a design that accords with economic principles. Such a design would compensate both dispatchable and non-dispatchable resources according to their reliability value, include an efficient penalty structure for non-performance of generation units, reduce uncertainty for market participants, and mitigate market power exercise.
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Best Practices for Energy Substitution Analysis
In recent years, numerous federal agencies have made a controversial claim: that projects locking in fossil fuels over the long term will decrease aggregate greenhouse gas emissions, or that their effects on total emissions will be limited. In many of those cases, however, agencies have reached this counter-intuitive conclusion using a flawed consideration of energy substitution. This report identifies some of the recurring problems with agency analysis of energy substitution and offers best practices to apply moving forward.
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Amicus Brief in D.C. Circuit Defending BOEM’s Authority to Robustly Consider Climate Impacts in Offshore Leasing
Earlier this year, a group of environmental organizations successfully challenged an offshore oil-and-gas lease sale held by the Bureau Ocean Energy Management on the basis that BOEM inadequately assessed the impacts on climate change from the combustion of the fossil fuels that the lease sale would facilitate. In its appeal to the D.C. Circuit, the American Petroleum Institute countered that any analytical limitations were harmless because the Outer Continental Shelf Lands Act bars BOEM from considering climate-change impacts when administering leasing policy. Our amicus brief rebuts this argument and defends BOEM’s authority to consider downstream climate impacts in its administration of the offshore leasing program. Our brief explains that the consideration of downstream emissions is consistent with OCSLA’s text, legislative history, regulatory history, and caselaw.