Federal Court Not Buying ‘Social Cost of Carbon’

What happened: A federal court Feb. 11 struck down the Biden administration’s ‘social cost of carbon’ (SCC) estimate, which attempted to put a price tag on annual ‘damages associated with an incremental increase in carbon’ and justify climate regulations. The SCC was first developed in 2010 by 13 federal agencies, including the U.S. Department of Transportation, with subsequent administrations updating it according to their latest data.

Why it matters: The court’s order stated that the SCC estimate was ‘arbitrary and capricious and ‘based on fundamentally flawed methodology.’ ARTBA has warned Congress and the Office of Management and Budget the rule’s vagueness could attempt to hold transportation projects responsible for emissions associated with development occurring after the project is completed.

What’s next: Use of the SCC is blocked nationwide. The Biden administration has not announced plans to appeal the ruling, though it is expected to do so. ARTBA will continue to monitor this issue.