Discussion Board: Did The Court Raise a “High Bar”?
The following discussion board post is by Mark Moller, a senior fellow at the Cato Institute in Washington. The Cato Institute filed as an amicus supporting the respondent in Mass v. EPA.
Earlier today, a commentator on NPR suggested that the Court has raised a “high bar” for the EPA, if the EPA wants to decline, again, to regulate global warming after remand. Is that right?
Not really.
“Regulation,” under the Clean Air Act, can take a number of forms: It can take the form of declaring aspirational emission standards. Or it can take more draconian forms, such as looming technology mandates and imminent implementation deadlines, backed by tough civil and criminal penalties.
Even assuming that, after today, the EPA has to “regulate” in the sense of promulgating some GHG emission standards, the Court’s decision leaves the EPA with ample room to argue that it can defer deciding when and how to implement those standards in light of the potentially high and uncertain costs of implementation.
It’s true, of course, that some parts of the Clean Air Act prohibit the EPA from undertaking this sort of cost-benefit analysis. The parts of the CAA governing auto emission standards are, however, different. There, the EPA retains considerable discretion weigh costs and-benefits—particularly when it comes to the “when” and “how” of implementing emission controls. For example, as Justice Stevens notes, section 202(a)(2) of the CAA gives the EPA broad discretion to delay implementation of pollution controls to the extent that “the Administrator finds necessary to permit the development and application of the requisite [pollution control] technology, giving appropriate consideration to the cost of compliance within such period.” Put in plain English, that means that if the “costs” of developing effective pollution-reducing technologies are very large, and the pay off of this R&D is in the far-distant future, the CAA doesn’t require the EPA to implement its standards right away.
The Court’s opinion also reaffirms the great deference owed to the EPA’s decision not to enforce any standards that it might promulgate. In the words of Justice Stevens today, an “agency has broad discretion to choose how best to marshal its limited resources and personnel to carry out its delegated responsibilities.” Given the breadth of discretion granted the agency to defer implementation under provisions like section 202(a)(2), and the costs and uncertainties associated with implementation, that deference may gave the EPA very substantial room to defer—perhaps for a very long time—implementation of a federal GHG enforcement regime, freeing the EPA to deal with more immediate and pressing environmental problems.
Nor is analysis of the EPA’s leeway to delay implementation much different if, as some assume, the Court’s decision means that GHG emissions are also “pollutants” under CAA provisions dealing with “national ambient air quality standards.” True, in Whitman v. American Trucking Association, the Court held that the EPA must set NAAQS without regard to the costs of implementation. But in his concurrence in that case, Justice Breyer suggested that even CAA requirements governing national ambient air quality standards permit some modified cost-benefit analysis. He emphasized, for example, that when setting NAAQS, the EPA doesn’t have to eliminate “any health risk, however slight, at any economic cost, however great.” It is only required to eliminate “unacceptable” risks, defined as those that the public is not willing to tolerate at any cost.
New American car emissions count for only 6% of worldwide carbon dioxide emissions. Eliminating these emissions wouldn’t necessarily reverse global warming or even appreciably slow it—particularly given the dynamic nature of emissions in developing countries. Thus, it’s far from evident that the added global warming risks created by new American car emissions are “unacceptable” in the sense suggested by Justice Breyer. On the face of the record, it’s also far from clear that the risks posed by other GHG-omitting sources in the U.S., such as stationary sources, are any more publicly “unacceptable” in the sense meant by Breyer, given uncertainty about the payoff of unilateral American remediation and given the cost and current feasibility of GHG control technology.
Ultimately, then, the key flaw with the EPA’s decision may not have been the outcome of that decision, or even the overarching reasons given by the EPA for its decision. The fatal flaw may have been only the conclusory nature of the reasons given by the EPA for its decision. For example, the EPA said that it wouldn’t act now because effective GHG-reducing technologies weren’t feasible at present and wouldn’t be feasible in the near future. But the EPA didn’t make any effort to quantify, or otherwise support with evidence, that feasibility assessment. Instead, it offered its conclusions as facts that courts must accept at face value—something five justices weren’t willing to do. But if the EPA can supplement its feasibility conclusions with at least some evidence, it may be able to pull at least one or two justices—most likely Breyer or Kennedy–into the dissenters’ orbit.

Harrow’s analysis, while basically right, never the less doesn’t diminish the importance of the ruling.
The National Environmental Policy Act, for example, has no firm prohibitions or standards. It requires governments merely to evaluate the environmental impact of major governmental actions and consider them thoughtfully. But, it has arguably produced more beneficial results than such tough, rule bound approaches as CERCLA’s cost recovery provisions.
The reality is that if EPA administrators are forced to remove their political hats and put on their engineering hats, that once they admit that the problem exists they will look at a lot of options for dealing with it, identify the major controllable contributors to the problem, and issue some sort of regulation or mandate or plan to deal with it that will have some effect.
This case, like a lot of EPA administrative cases, is basically a power play within the agency, and once won, something will happen. Even if the new standard is simply a “don’t make things worse” standard, and that replaces low single digit growth in relevant emissions each year, over a couple of years, the impact could be material.
Comment by Andrew Oh-Willeke — April 3, 2007 @ 11:32 am
Moller’s analysis is instructive, but I remain perplexed as to the likely (vs possible) meaning of the finding.
1) Will the EPA be allowed to limit or defer substantive regulation based on:
a) the uncertain degree of human caused global warming via greenhouse gases?
b) the additiional uncertainty of the scope and specific regional impact of climate changes (e.g. the impact in the US may not be serious compared to other countries)?
c) the additional uncertainity over the positive vs negative health and safety impacts in the US?
d) the uncertainity of the effectiveness of mitigation for Americans in a world-wide enviroment?
e) Can the EPA promote geo-engineering and adaptation rather than prevention as the most effective strategy?
Under the cover of legal reasoning, I smell a particular distaste for clear guides, enviromental economics and/or even cursory cost-benefit analysis as applied to human well-being. What does, for example, “unacceptable risk” mean EXCEPT that amount of risk tolerance specifically expressed via a Congressionally imposed standard in law – rather than expecting an agencies subjective impression of the political winds?
The IPCC said it is very likely that continued warming is from human generated greenhouse gases. If so, it is likely that the climate will substantively change. If so, it is likely that there will be a mix of winner’s and losers. If so, it may be more likely than not there will be more winner’s than losers but we are very uncertain on the balance and who will net/lose…as well as to the degree and timing of win/loss.
We also don’t know if prevention is worthwhile, or if adaptation and later geo mitigation is far more effective.
None the less, I sense that if the EPA found that the impacts, risks, costs, and effectiveness of current strategies to affect climate in the year 2075 make it unreasonablely expensive and unproductive to impose limits, the Supreme Court would care less.
d) reasonable cost benefits?
Comment by Max Parrish — April 3, 2007 @ 5:00 pm