Biden 'cost of carbon' policy survives another legal hurdle

NEW ORLEANS (AP) — In a victory for President Joe Biden, a federal appeals court Thursday refused to revisit its March decision reviving administration plans to account for potential damage from greenhouse gas emissions when creating rules for pollution-generating industries.

A Louisiana-based federal judge had blocked the so-called social cost of carbon policy earlier this year, saying it would bring costly regulatory burdens and drive up energy prices. But a panel of three 5th U.S. Circuit Court of Appeals judges in New Orleans unanimously stayed the lower court last month. On Thursday, the appeals court issued a brief order saying none of the court's 17 full-time judges sought a rehearing, which had been requested by Louisiana Attorney General Jeff Landry.

Landry led the challenge on behalf of Louisiana and nine other states. His office did not immediately respond to an email asking whether he would appeal to the Supreme Court. Alabama, Florida, Georgia, Kentucky, Mississippi, South Dakota, Texas, West Virginia and Wyoming joined Louisiana in the challenge.

The policy aims to put a dollar value on damage caused by every additional ton of greenhouse gases emitted into the atmosphere. That cost estimate would be used to shape future rules for oil and gas drilling, automobiles, and other industries, and a higher estimate could justify more stringent rules.

On his first day in office, Biden issued an order that restored the cost estimate to about $51 per ton of carbon dioxide emissions after the Trump administration had reduced the figure to about $7 or less per ton. Former President Donald Trump’s estimate included only damage felt in the U.S. versus the global damage captured in higher estimates that were previously used under the Obama administration.

Republicans and business groups have questioned the accuracy of...