Biden Administration
IRA’s Impact
The new law is a Big Deal. Or more precisely, a REALLY Big Deal.
IRA, the Inflation Reduction Act, is clearly the biggest climate legislation ever passed in the United States. The law will provide $379 billion in subsidies to clean energy in the form of direct payments and tax credits. Subsidies aren’t the ideal way to cut emissions, because it’s impossible to target them to the precise behavioral …
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CONTINUE READINGA Great Day for Climate Policy
A short video explainer of why passage of the IRA bill is such a big deal.
We all have something to celebrate with the House passage of the IRA on Friday. Getting it passed required some difficult compromises, but the bill represents a major step forward. Because of the Mar-a-Lago search, it hasn’t gotten nearly as much attention as it deserves. If you don’t have time for a lot of details, …
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CONTINUE READINGThe Inflation Reduction Act and the Sequencing of Climate Policy
Why subsidies for clean energy generally are preconditions for other climate policies
The Inflation Reduction Act would be, if enacted, the biggest piece of climate legislation that the U.S. Congress has ever passed. As such, it’s gotten a fair amount of coverage attempting to put it into context for the broader scope of climate policy in the U.S. and globally – in particular, this article in Slate …
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CONTINUE READINGBracket Creep at OIRA
There’s an embarrassing economic blunder in how OIRA’s jurisdiction is defined.
The Biden Administration is considering changes to how OIRA, the “regulatory czar,” operates. There’s one simple fix the Administration should make. OIRA core function is cost-benefit analysis But the rules establishing OIRA’s jurisdiction contain an error that should make an economist blush: using nominal rather than real (inflation-adjusted) dollars. This means that OIRA is now …
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CONTINUE READINGWhy We Can’t Wait
In climate policy, delay is deadly.
There are a lot of complaints about the very real flaws in the Inflation Reduction Act, tied with arguments that we should wait until we can do something better. In climate policy, however, waiting is dangerous. We’ve already delayed far too long. Further delay means having to cut emission much more rapidly to make up …
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CONTINUE READINGThe Major Money Doctrine
Senate passes biggest climate legislation ever.
In June, the Supreme Court trimmed EPA’s power to regulate greenhouse gases. The Court used the “Major Question Doctrine,” which says that issues of “vast political and economic significance” must be decided by Congress. Senate Democrats gave their response on Sunday: the Major Money Doctrine. They passed the Inflation Reduction Act (IRA), which provides over …
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CONTINUE READINGTwo and a half cheers for the IRA
Climate legislation sets the stage not just for decarbonization now, but greater policy success later on
The announcement of the legislative deal (the Inflation Reduction Act of 2022) between Senator Joe Manchin (D-WV) and the Democratic Senate leadership was a bid deal in climate policy. The legislation relies on the reconciliation process, allowing it to pass with a simple 50 votes (plus Vice President Harris’ tie-breaker vote). The legislation provides for …
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CONTINUE READINGThe climate bill and oil and gas leasing
Provision in big climate bill that mandates oil and gas leasing on federal lands has limited reach
The big news in climate policy this past week was Senator Joe Manchin (D-WV) signing off on a deal with the Democratic Senate Majority leader, Chuck Schumer, to spend hundreds of billions of dollars on climate investments – the bill is catchily called the Inflation Reduction Act of 2022. I’ll take a look at the …
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CONTINUE READINGWest Virginia v. EPA: A Quick Explainer
This video lays out the issues, what the Court did, and where EPA can go from here.
CONTINUE READINGEPA’s Best Option: Co-Firing
Yesterday’s decision leaves open a powerful regulatory tool.
What can EPA do to cut carbon emissions from coal-fired power plants after yesterday’s decision in West Virginia v. EPA? The decision clearly ruled out any direct mandate to shift generation from coal generators to cleaner power generators. But the Supreme Court didn’t endorse Trump’s ultra-limited interpretation of the law either. This leaves EPA with …
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