Non-GHG Emission Standards with GHG Co-Benefits

Overhaul of Cost-Benefit Analysis

On January 20, 2021, President Biden signed Executive Order 13990 (Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis). Section 2 of the Executive Order directed the EPA administrator to “consider publishing for notice and comment a proposed rule suspending, revising, or rescinding” the final rule issued on December 23, 2020 titled “Increasing Consistency and Transparency in Considering Benefits and Costs in the Clean AIr Act Rulemaking Process” (commonly known as the “Benefit-Cost Rule”). The Benefit-Cost Rule was issued by EPA during the first Trump administration. In promulgating the Benefit Cost Rule, EPA relies on section 301(a)(1) of the Clean Air Act, which authorizes the Administrator “to prescribe such regulations as are necessary to carry out his functions under this chapter.” The preamble to the Benefit-Cost Rule indicated that the “authority in Section 301(a)(1) extends to internal agency procedures that increase the Agency's ability to provide consistency and transparency to the public in regard to the rulemaking process under the” Clean Air Act and thus adoption of the Benefit-Cost Rule was authorized under that section. Later, when EPA rescinded the Benefit-Cost Rule, it suggested that it may not have been authorized under section 301(a)(1) of the Clean Air Act.

On July 13, 2023, EPA issued a final rule rescinding the 2020 Benefit-Cost Rule. EPA concluded that the changes mandated by the 2020 Benefit-Cost Rule “were inadvisable, untethered to the Clean Air Act (CAA), and not necessary to effectuate the purposes of the Act.” 88 Fed. Reg. 44,710 (July 13, 2023).

Biden Administration (2021-2024)

On July 13, 2023, EPA issued a final rule rescinding the 2020 Benefit-Cost Rule. EPA concluded that the changes mandated by the 2020 Benefit-Cost Rule “were inadvisable, untethered to the Clean Air Act (CAA), and not necessary to effectuate the purposes of the Act.” 88 Fed. Reg. 44,710 (July 13, 2023).

On May 14, 2021, EPA published an interim final rule rescinding the 2020 Benefit-Cost Rule and requested public comment on that action. 86 Fed. Reg. 26,406 (May 14, 2021).

First Trump Administration (2017–2020)

On December 9, 2020, EPA finalized the so-called Benefit-Cost Rule, which established new requirements for  analyzing new regulations' costs and benefits under the Clean Air Act. 85 Fed. Reg. 84,130 (Dec. 23, 2020). The changes sought to limit EPA’s  consideration of co-benefits when developing and justifying new regulations and could thus constrain its  ability to consider climate regulations' ancillary benefits, such as reductions in conventional pollutants. (See New York v. EPA in “Litigation” below.)

Litigation

Challenge to Benefit-Cost Rule - New York v. EPA

On January 19, 2021, a coalition of states challenged the Benefit-Cost Rule in the D.C. Circuit. The case was then held in abeyance in February 2021.