EPA Proposes Improved Processes for Cost-Benefit Regulations under the Clean Air Act
WASHINGTON (June 4, 2020) – Today, the U.S. Environmental Protection Agency released a proposal to improve its processes for developing the benefits and costs of regulations under the Clean Air Act. The aims of the reform are laudable, which are to ensure the use of the best available information in economics, engineering and environmental sciences in a transparent and consistent manner to guide the EPA’s decisions.
This reform has been a long time coming. Current cost-benefit analyses sometimes do not reflect the most current evidence and lack transparency and consistency across EPA rules. The analyses are often not applied in a context that compares all relevant regulatory alternatives, as the CAA contains provisions specific to classes of pollutants. Rules in one target class are sometimes justified by their benefits in reducing pollution in other classes without accounting for the regulatory vehicles intended for the other class. This practice often results in miscounting of costs and benefits and fails to evaluate regulatory options that would achieve lower costs for the same benefit or increase overall net benefits to society.
R Street Director of Energy and Environmental Policy Devin Hartman said “The Trump administration has laid the groundwork to revamp cost-benefit analyses for several years, which is long overdue. The EPA should improve the use of proper cost-benefit methods to improve transparency and promote regulatory decisions that improve outcomes for the economy and environment.”
Hartman went on to say that “Environmental regulation must balance environmental safeguards with their economic cost. Current practices often miscount costs and benefits. Evidence-based reform is warranted to ensure best practices are driving the EPA’s regulatory agenda.”
For press inquiries, please contact Corinne Day at [email protected].
