Federal Appeals Court Reinstates ‘Social Cost of Carbon’

What happened: A federal appeals court March 16 reversed a lower court ruling that halted use of the Biden administration’s ‘social cost of carbon'(SCC), described as ‘an estimate of the monetized damages associated with an incremental increase in carbon in any given year.’ The administration can now move forward with a number of climate-related regulatory proposals which had been put on hold when the SCC was blocked.

Why it matters: By attaching a financial value to carbon emissions, the SCC allows federal agencies to quantify the economic impacts associated with climate change. These impacts are then used by agencies to justify regulations aimed at reducing greenhouse gas emissions. ARTBA has warned Congress and the Office of Management and Budget that such vague estimates could be used to hold transportation projects responsible for emissions associated with development occurring after the project is completed, such as houses or factories.

What’s next: SCC opponents have not yet announced an appeal. ARTBA will continue to monitor this issue.