Hill Heat

On Thursday, July 18, Howard Shelanski, White House Office of Management Budget’s Administrator for the Office of Information and Regulatory Affairs, will testify before a hearting of the House Committee on Oversight and Government Reform, on OIRA’s “social cost of carbon” calculations. The social cost of carbon has been used in recent rulemakings by the Department of Energy and other agencies to estimate the economic damages from future carbon pollution. Below and attached is his prepared testimony:

Thank you for the opportunity to appear before you today. I was recently confirmed as the Administrator of the Office of Information and Regulatory Affairs (OIRA) at the Office of Management and Budget (OMB), and I am honored to be serving in this role. I look forward to speaking with you about the social cost of carbon.

When I refer to the “social cost of carbon” (SCC) I mean the values used to calculate the monetary costs and benefits of incremental changes in the volume of carbon emissions in a given year. The social cost of carbon includes, for example, changes in net agricultural productivity and human health, property damage from increased flood risk, energy system costs, and the value of ecosystem services lost because of climate change.

Executive Orders 12866 and 13563 direct agencies to use the best available scientific, technical, economic, and other information to quantify the costs and benefits of rules. Rigorous evaluation of costs and benefits has been a core tenet of the rulemaking process for decades through Republican and Democratic Administrations. This fundamental principle of using the best available information underpins the Administration’s efforts to develop and update its estimates of the social cost of carbon. Indeed, cost benefit analysis better informs decision makers if it takes into account the current and future damages from carbon pollution.

The hearing, originally scheduled for May 8, will examine the new ozone national ambient air quality standards (NAAQS) and the process the Environmental Protection Agency used in setting them.

On March 12, 2008, EPA Administrator Stephen L. Johnson finalized updated NAAQS for ozone, a primary component of smog. The new ozone NAAQS are comprised of a revised primary standard to protect health and a revised secondary standard to protect the environment. In setting both standards, EPA Administrator Johnson did not accept the recommendations provided to him by EPA’s independent scientific review committee, the Clean Air Scientific Advisory Committee (CASAC). With regard to the secondary standard, Administrator Johnson’s efforts to set a new standard were overruled by the White House.

In light of new information obtained by the Committee, questions are also expected regarding the White House’s role in EPA’s action to block California’s program to regulate greenhouse gases from automobiles.

Witnesses

Panel I

• Stephen L. Johnson, Administrator of the Environmental Protection Agency
• Susan E. Dudley, Administrator of OMB’s Office of Information and Regulatory Affairs
• Dr. Rogene Henderson, Chair, Clean Air Scientific Advisory Committee

Panel II

• Dr. Francesca Grifo, Senior Scientist, Union Of Concerned Scientists
• Michael Goo, Climate Legislative Director, Natural Resources Defense Council
• Dr. Roger O. McClellan, Advisor, Toxicology and Human Heath Risk Analysis
• Alan Charles Raul, Partner, Sidley Austin, LLP

20/05/2008 at 01:00PM

Witnesses

Panel I

• Stephen Johnson, administrator, U.S. EPA
• Susan Dudley, administrator, Federal Office of Information and Regulatory Affairs
• Rogene Henderson, chairwoman, Clean Air Scientific Advisory Committee

Panel II

• Francesca Grifo, senior scientist, Union of Concerned Scientists
• Michael Goo, climate legislative director, Natural Resources Defense Council
• Roger McClellan, adviser, Toxicology and Human Health Risk Analysis
• Alan Charles Raul, partner, Sidley Austin LLP.

08/05/2008 at 10:00AM