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, they鈥檙e expected to back up major decisions with a breakdown of the pros and cons for society鈥攁nd 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 it鈥檚 manipulating the math in unprecedented ways to advance fossil fuel interests and harm human and wildlife health in the long term. 鈥淚 think what this administration does is just a totally different beast,鈥 says Richard Revesz, director of New York University鈥檚 Institute for Policy Integrity, a nonpartisan think tank. 鈥淭he analysis they use is outside the bounds of professional judgment.鈥

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 lease鈥攑otentially the first offshore fuel production in Alaska鈥檚 federal waters鈥攔easoned 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 today鈥檚 energy markets by misrepresenting supply and demand. 鈥淭hat鈥檚 just a crazy, crazy analysis,鈥 says Jeremy Lieb, an attorney for the environmental nonprofit Earthjustice. The government in October.

The federal government鈥檚 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 policy鈥檚 upsides, no matter how indirect. For example, when President Reagan鈥檚 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 well鈥攁 health 鈥渃o-benefit鈥 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 calculus鈥攁t least when it suits their deregulatory agenda. 鈥淚t鈥檚 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,鈥 says Joseph Goffman, executive director of Harvard University鈥檚 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 administration鈥檚 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 plants鈥攚hich cause a wide range of health problems in people, birds, and aquatic animals鈥攚ere no longer 鈥渁ppropriate and necessary.鈥 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.

鈥淭he consequences are enormous,鈥 Revesz says. 鈥淵ou won鈥檛 find a single respectable economist who would say this was a plausible methodology.鈥

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 sheets鈥攁 move that environmentalists and legal experts see as a way to minimize the upsides of all kinds of regulations. 鈥淚f they institutionalize not counting co-benefits for environmental rules, the lasting impact of that could be huge,鈥 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 administration鈥檚 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 EPA鈥檚 conclusion of unreasonable costs. Before any rules can be undone, though, the agency鈥檚 accounting will have to pass judicial muster. It鈥檚 like getting called up to the chalkboard in class鈥攅veryone can see if your numbers do or don鈥檛 add up.

Additional reporting by Lexi Krupp.

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