Biden Administration
Bracket 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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CONTINUE READINGThe Supreme Court Curbs Climate Action
The ruling in West Virginia v. EPA was about as good as we could expect given the makeup of the Court.
Today, the Supreme Court decided its most important environmental case since 2007. We didn’t dodge the bullet. It’s more than a flesh wound but it didn’t hit any vital organs . Chief Justice Roberts’s majority opinion leaves EPA other options to reduce carbon emissions from coal-fired power plants. It also gives a fairly narrow reading …
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CONTINUE READINGUnquantified Benefits
How can the government account for benefits that it can’t measure?
Like it or not, quantitative cost-benefit analysis has been a key part of the regulatory process for forty years and seem likely to stay that way. Yet even economists admit that they don’t (yet) know how to put numbers on the value of some important regulatory benefits. But how can those qualitative assessments be combined …
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CONTINUE READINGAfter the Court Rules: Gaming out Responses to a Cutback in EPA Authority
The Supreme Court is almost certain to cut back on EPA’s power to regulate greenhouse gases. What then?
In West Virginia v. EPA, the Supreme Court is reviewing Obama’s Clean Power Plan. The Clean Power Plan (CPP) itself no longer has any practical relevance, but there’s every reason to predict the Court will strike it down anyway. The ruling will also restrict EPA’s future options. The big question is what the Biden Administration …
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