Incorporating Environmental Justice Into Benefit-Cost Analysis of Federal Rulemakings

President Biden proposes to revise the federal rulemaking process to advance the values of justice and equity. This analysis offers a practical path forward by adding an equity test to the efficiency test applied to new federal regulations by the U.S. Office of Management and Budget. This article explores the feasibility of the proposal with applications to regulation of hazardous air pollutants and drinking water contaminants. The proposal seeks to advance the interests of low-income Americans in federal rulemaking, a subgroup that has received little historical priority in the regulatory impact analyses prepared by federal regulatory agencies.