Cities have become a critical source of innovation across a wide array of policy areas that advance inclusion, equitable opportunity, and social justice. In the absence of state and federal action, cities and other local governments have taken the lead in enacting minimum wage and paid sick leave policies, expanding the boundaries of civil rights, tackling public health challenges, responding to emerging environmental threats, and advancing new technologies.

In Federal Lands and Fossil Fuels: Maximizing Social Welfare in Federal Energy Leasing, Prof. Jayni Foley Hein assesses inefficiencies in the federal fossil fuel leasing program that lead to the over-extraction of fossil fuels at great societal cost. In recognition of the U.S. Department of the Interior’s (DOI's) role in stewarding federal lands for the long-term benefit of the American people, Hein proposes that DOI should adopt a policy of seeking to maximize social welfare or “net public benefits” in its leasing decisions.

The externality costs of fossil fuel production—including pollution costs—are not accounted for under the U.S. Department of the Interior’s (Interior) coal, oil, and natural gas leasing programs. This results in fossil fuel production on public lands imposing significant social costs. Interior’s leasing programs have never been tailored to meet any past or present climate change goals, despite their significant contribution to domestic greenhouse gas emissions.

Cooperative federalism can lead to more efficient and pragmatic environmental protection, and allow states to develop effective programs tailored to their needs and resources. Nevertheless, the future of the federal-state relationship in the environmental context is uncertain as state and federal priorities come into conflict: for instance, EPA’s proposal to revoke California’s authority to regulate tailpipe emissions of greenhouse gases. Recent reports have begun a discussion on the future of cooperative federalism and environmental protection, but significant questions remain unanswered.