How U.S. Agencies Are Fudging the Numbers on Environmental Regulations

By writing their own accounting rules, EPA and DOI officials are justifying decisions that endanger our health.

Like most math students, federal agencies have to show their work when solving a problem. Whether managing public lands or reining in pollution, theyre expected to back up major decisions with a breakdown of the pros and cons for societyand present how data guide every conclusion.

The Trump administration, however, has taken a different tack. Instead of following the numbers where they lead, experts say its manipulating the math in unprecedented ways to advance fossil fuel interests and harm human and wildlife health in the long term. I think what this administration does is just a totally different beast, says Richard Revesz, director of New York Universitys Institute for Policy Integrity, a nonpartisan think tank. The analysis they use is outside the bounds of professional judgment.

This tinkering has led to some equally far-out conclusions. Last August the U.S. Department of the Interior concluded that a major oil drilling project could actually reduce global carbon emissions. The environmental report for the leasepotentially the first offshore fuel production in Alaskas federal watersreasoned that extracting up to 70,000 barrels of crude per day would keep foreign countries with laxer regulations from using some of their own reserves, a conclusion that critics say defies the economic logic of todays energy markets by misrepresenting supply and demand. Thats just a crazy, crazy analysis, says Jeremy Lieb, an attorney for the environmental nonprofit Earthjustice. The government in October.

The federal governments faulty bookkeeping also breaks with longstanding guidance that transcends party lines. For decades both Republican and Democratic administrations to square the costs of new rules with an economic estimate of their benefits, even to the point of monetizing human lives. Traditionally, these estimates have encompassed all of a policys upsides, no matter how indirect. For example, when President Reagans Environmental Protection Agency (EPA) looked at the effects of tamping down lead in gasoline, it realized that tighter regulations would slash pollution like harmful ground-level ozone as wella health co-benefit valued at a year. Added together, the savings helped move the agency to phase lead out of fuel.

But Trump officials, in several cases, are playing fast and loose with this calculusat least when it suits their deregulatory agenda. Its clear that the administration shops for opportunities to either deflate or inflate benefits, or to incorporate or exclude co-benefits, entirely for the convenience of the results they want to reach, says Joseph Goffman, executive director of Harvard Universitys Environmental and Energy Law Program.

Trump officials are playing fast and loose with the calculus, at least when it suits their deregulatory agenda.

Take its effort to repeal the Clean Power Plan, the Obama administrations signature climate policy. EPA officials in health benefits from air pollution reductions that stem from carbon cuts. Similarly, in December, the agency said that 2012 rules to curb from power plantswhich cause a wide range of health problems in people, birds, and aquatic animalswere no longer appropriate and necessary. It supported its opinion with calculations that whittled the previous estimate of $90 billion in societal benefits from mercury limits down to only $6 million.

The consequences are enormous, Revesz says. You wont find a single respectable economist who would say this was a plausible methodology.

So far much of this fuzzy math has been done piecemeal. But last year the EPA announced that it wants to its cost-benefit balance sheetsa move that environmentalists and legal experts see as a way to minimize the upsides of all kinds of regulations. If they institutionalize not counting co-benefits for environmental rules, the lasting impact of that could be huge, says Janet McCabe, a law professor at Indiana University and, like Goffman, a former EPA official under President Obama.

In the end, many of the Trump administrations decisions will likely be challenged in court. Environmental groups to stop the Arctic offshore drilling lease. On the flip side, Revesz says, coal companies might now sue to overturn the existing mercury caps, citing the EPAs conclusion of unreasonable costs. Before any rules can be undone, though, the agencys accounting will have to pass judicial muster. Its like getting called up to the chalkboard in classeveryone can see if your numbers do or dont add up.

Additional reporting by Lexi Krupp.

This story originally ran in the Spring 2019 issue as Fudging the Numbers. To receive our print magazine, become a member by .