Blog Posts of Matthew Madia

Snowe Anti-Reg Amendment Fails, but with a Majority

 

A legislative amendment intended to delay new public protections and roll back existing regulations failed in the Senate today. The amendment, championed by Sen. Olympia Snowe (R-ME), is the same legislation that derailed a small business aid bill last month.

Snowe’s amendment is a sop to corporate lobbyists. It would complicate the rulemaking process in ways that waste agency time and taxpayer resources while giving special interests additional opportunities to game the system and undermine decisions based on science and agency expertise. Specifically, the amendment would:

  • Allow special interests to challenge agency rules in court before they are even finalized, potentially trapping agencies in a never-ending cycle of litigation.
  • Require agencies to conduct lookback reviews for potentially all their rules under deadline. If the agency doesn’t meet the deadline or if the review is deemed inadequate, agency inspectors general could cut agency budgets by one percent for each rule.
  • Increase the number of agencies required to form small business review panels that give business representatives a sneak peek at rules under development, before they go public. (Currently, only EPA, OSHA, and the new consumer protection bureau must form the panels.)
  • Expand agency cost-benefit analyses to include “indirect” impacts, with a definition of indirect that’s vague enough to send agencies on an endless quest for new implications before they can act.
  • Expand these requirements to agency guidance documents, not just rules, even though guidance documents are non-compulsory and often help businesses comply with rules or keep their products and practices safe and effective. 

Snowe attempted to attach her amendment to a bill that would reauthorize the Economic Development Administration. Although the amendment failed in a 53-46 cloture vote, seven short of the 60 needed to end debate, it is unlikely to be gone for good. This is the second time Snowe has tried to attach the amendment to an unrelated bill, and, during the second go-round, she gave it a new, snappy name: Freedom from Restrictive Excessive Executive Demands and Onerous Mandates (FREEDOM) Act of 2011.

(“Freedom” is an interesting choice of title given that the bill’s supporters would pay for it by eliminating a program that helps veterans start and maintain small businesses – a cruel blow to the entrepreneurial spirit of those who fought to keep our nation free. The bill would transfer funds from the Small Business Administration’s Veterans Assistance and Services Program to the SBA’s Office of Advocacy, an agency that funnels business concerns into agency rulemakings.)

The Coalition for Sensible Safeguards, of which OMB Watch is a member, wrote to Senators today urging them to vote “no” on the amendment and applauds the 46 Senators who did.

But the 53 who voted “aye” should be ashamed. The Snowe amendment would impact every major regulatory agency, slowing health and safety standards in the pipeline and allowing special interests to target rules on the books. The amendment would negatively impact food and product safety, clean air and water, the health and safety of miners and other workers, fair access to healthcare, and tougher oversight of Wall Street. Rules that aid students, farmers, veterans, the disabled, and even small businesses – which the amendment purports to benefit – would be swept in as well.

Snowe’s amendment is backed by big business lobbyists from the U.S. Chamber of Commerce, National Association of Home Builders, National Retail Federation, and others.

(Matthew Madia 06/09/11; 0 comments)

FDA Chides House Republican’s “Body Count” Amendment

 

An amendment introduced by Rep. Denny Rehberg (R-MT) would hogtie the Food and Drug Administration (FDA) by forcing the agency to wait for public health crises to happen before it could act. "This amendment would require that consumers actually be harmed before FDA can take certain actions to protect the public health,” the agency said.

Rehberg’s amendment, attached to a spending bill that moved out of the House appropriations committee last week, would prohibit the FDA from taking regulatory action on food, medical products, or tobacco unless it has “hard science” showing that a product or substance will harm consumers. The amendment makes a clumsy attempt to define “hard science,” but the intent is clearly to prevent the FDA from taking proactive measures to protect vulnerable people unless and until it can conclusively solve a health or safety mystery – no matter how many bodies pile up or hospital beds fill up in the process. Here is the text:

Sec. 740. None of the funds made available by this Act may be used by the Food and Drug Administration to write, prepare, develop or publish a proposed, interim, or final rule, regulation, or guidance that is intended to restrict the use of a substance or a compound unless the Secretary bases such rule, regulation or guidance on hard science (and not on such factors as cost and consumer behavior), and determines that the weight of toxicological evidence, epidemiological evidence, and risk assessments clearly justifies such action, including a demonstration that a product containing such substance or compound is more harmful to users than a product that does not contain such substance or compound, or in the case of pharmaceuticals, has been demonstrated by scientific study to have none of the purported benefits. 

Michael Taylor, FDA’s Deputy Commissioner for Foods, spoke in opposition to the amendment today. “I think if we waited until the last science was in, I think the public would find that unacceptable because you'd be waiting until people are hurt," Taylor said, according to The Hill. “He gave the example of efforts to prevent contaminated irrigation water that is known to be a hazard even though regulators lack data on how each individual type of produce can affect the public health,” The Hill reports.

“Legislation that would require us to wait until people are hurt in order to take action is counter, in our view, to what public health is all about.”

(Matthew Madia 06/07/11; 1 comment)

Budget Nausea: House to Cut Food Safety Spending

 

House appropriators this week approved major budget cuts for the two agencies responsible for protecting the American food supply: the Food Safety and Inspection Service (FSIS – responsible for meat, poultry, and some dairy) and the Food and Drug Administration (FDA – responsible for the rest).

On May 31, the House Appropriations Committee approved by voice vote its budget for the Department of Agriculture (where FSIS sits) and the FDA for fiscal year 2012. The budget would slash spending at FSIS by more than $34 million (3.4 %) from current levels. The bill would set FDA’s appropriations level at $2.2 billion, almost $300 million below current levels and almost $600 million below President Obama’s request.

The cuts mean that more people will be sickened by foodborne illnesses. FSIS is a resource-intensive agency: A USDA veterinarian must look at every animal before it is slaughtered, and an inspector must observe slaughterhouses and approve packaging. For years, FSIS has been forced to spread personnel too thinly, and the employee levels have only begun to recover in the past few years. The House budget would reverse that progress.

As for the FDA, the agency needs more money to implement the Food Safety Modernization Act passed in December. The law, supported by food safety advocates and the food industry alike, would give FDA the power to order recalls of tainted food, among other authorities. However, FDA will be unable to reap the full benefits of the law without adequate resources. The House Appropriations Committee acknowledges that implementing the bill “would require an additional $1.4 billion,” but is cutting the agency’s budget nonetheless.

The cuts also mean that the economy will likely suffer. Food recalls and contamination scares cost producers, distributors, and retailers money. (That’s partially why many of them supported the Food Safety Modernization Act.) Foodborne illness hospitalizes 128,000 and kills 3,000 Americans every year. And while the human toll is obviously the greatest concern, the economic costs – healthcare costs, lost productivity at work, etc. – are not insignificant.

The committee says it is cutting the USDA’s and FDA’s budget to address America’s “destructive spending pattern.” But regardless of your views on U.S. debt and deficit, cutting food safety spending is dangerously shortsighted. The cuts would only exacerbate the foodborne illness epidemic that affects thousands of Americans every year and would put businesses – especially the small businesses that cannot weather major recalls – at risk. If anything is destructive, it’s the House spending plan.

(Matthew Madia 06/03/11; 2 comments)

EPA Rules Don’t Kill Jobs, They Save Lives

 

Environmental standards finalized under the Obama administration are expected to yield extraordinary benefits while imposing relatively small costs on businesses, according to a new paper by the Economic Policy Institute. “The combined annual benefits from all final rules exceed their costs by $32 billion to $142 billion a year,” the paper, Tallying up the Impact of New EPA Rules, concludes.

The EPI paper, written by Isaac Shapiro, examines nine major rules finalized by the U.S. Environmental Protection Agency (EPA) during the Obama administration. The report adds up the projected costs and projected benefits of all the rules, using both the low-end and high-end estimates provided by EPA. Even if the costs of all nine rules turn out to be at the high-end of EPA’s estimates, and the benefits of all nine rules end up at the low-end, benefits will outweigh costs by $32 billion ($12.5 billion in costs compared to $44.5 billion in estimates), according to the report. Given that a previous EPI report found that agencies often overstate compliance costs when preparing the cost-benefit analyses for rules, the actual “net benefits” are likely to be much higher.

Of course, the real benefits are those to human health. As the EPI report also points out, the environmental standards will save lives, prevent heart attacks, and result in fewer hospital visits and more days at work for those affected by air pollution.

The EPI report is unlikely to dissuade Congressional Republicans of their ridiculous view that environmental regulations are hurting the economy. This week, the House Energy and Commerce Committee is considering the TRAIN Act, a piece of legislation that would create a closed committee of cabinet secretaries and other high-level officials to scrutinize the impact of EPA standards on the economy. The committee’s review, which would be in addition to the internal reviews EPA already performs and the review conducted by the Office of Management and Budget, would delay public health and environmental standards while giving polluters yet another audience for its anti-regulatory lobbying.

But those of us who believe in the value of environmental protection have the truth on our side. “When fully in effect in 2014, the combined costs of the rules finalized by the Obama administration’s EPA would amount to less than 0.1% of the economy,” the EPI paper says.

(Matthew Madia 06/01/11; 0 comments)

Lisa Jackson Defends Regulation on the Daily Show

 

EPA Administrator Lisa Jackson was on the Daily Show last night giving an impassioned defense of public health, the environment, and regulatory safeguards. Despite some recent disappointments from the EPA surrounding boiler emissions and coal ash, Jackson came across as a committed public servant and argued against some of the ridiculous attacks on public protections. (Jon Stewart asked Jackson about the boiler rule, and she said the agency was committed to finalizing it.) Check out part one and part two of the full interview.

(Matthew Madia 05/20/11; 0 comments)

MSHA Failed to Watchdog Deviant Mine Company

 

Today, the Governor’s Independent Investigation Panel submitted to the governor of West Virginia its report on the Upper Big Branch (UBB) mine disaster that killed 29 men in April 2010. Liz Borkowski at The Pump Handle blog has a detailed summary. Be sure to read it, especially if you’re going to bypass the 126-page report.

From a regulatory perspective, the bottom-line is this: Massey Energy, the owner of UBB, was a scofflaw – a repeat violator of critical safety standards; but for a variety of reasons, some explicable and some inexplicable, nothing was done to halt the company’s chronically dangerous practices at the Upper Big Branch mine. At a more visceral level, the transgressions and events leading up to and surrounding the disaster are a blow to human dignity.

MSHA clearly could have done more, according to the governor’s report: “Despite MSHA’s considerable authority and resources, its collective knowledge and experience, the disaster at the Upper Big Branch mine is proof positive that the agency failed its duty as the watchdog for coal miners.” In the year leading up to the disaster, the UBB mine was sending all the signs that it was about to be a big problem:

Inspectors spent 1,854 hours at the mine in 2009, nearly twice the time as in 2007. During 2009, they wrote 515 citations and orders for safety violations, including 48 withdrawal orders for repeated significant and substantial (S&S) violations. The monetary penalties proposed for violations in 2009 and early 2010 totaled nearly $1.1 million. 

But MSHA didn’t exercise elements of its regulatory authority. The agency’s inability to place UBB, or any mine, on its pattern of violations list has been well documented. The governor’s report also points out that MSHA chose not to use its power to declare “flagrant” violations at UBB, which come with a $220,000 fine.

The agency also failed “to see the entire picture” and “to connect the dots of the many potentially catastrophic failures taking place at the mine,” the report says. As a result, MSHA lost sight of its most important goal: prevention. “Enforcement aimed at prevention is what Congress envisioned for MSHA when it passed the federal Mine Law,” the report reminds us.

Of course, Massey wasn’t making it easy. The company has years of experience gaming the system. It routinely appeals violations and generally gives MSHA the legal runaround. The governor’s report relays this tale: “Massey’s Vice President for Safety Elizabeth Chamberlin reportedly took a violation written by an inspector, looked at her people and said, ‘Don’t worry, we’ll litigate it away.’ ”

I feel obligated to highlight one other element of the report, summarized by Borkowski:

Autopsies on 24 of the victims, ranging in age from 25 to 61, found that 17 of them (71%) had coal workers' pneumoconiosis, or black lung disease. Five of them had less than 10 years of coal mining experience. The current limits on coal mine dust, put in place in 1973, were intended to be sufficient to prevent CWP, but have apparently not succeeded in eliminating this irreversible respiratory disease. 

Even if the explosion at UBB hadn’t occurred, holes in the regulatory safety net were going to jeopardize these men’s lives anyway. This is no way to treat humankind.

(Matthew Madia 05/19/11; 0 comments)

EPA Delays Life-Saving Rule, Cites White House Order

 

In response to pressure from industry, the U.S. Environmental Protection Agency (EPA) is backing off of new clean air standards for industrial boilers. The standards, as finalized in February, would prevent “2,600 premature deaths, 4,100 heart attacks, and 42,000 asthma attacks” if implemented, according to EPA.

Instead, EPA is delaying the effective date of the standards. “The stay will remain in place until the proceedings for judicial review of these rules are completed or EPA completes its reconsideration of the standards, whichever is earlier,” EPA says.

As part of its rationale for the delay, the agency cited a January Executive Order signed by President Obama outlining his principles for government regulation. EPA said in a statement, “This process of careful consideration of public comments, and close attention to both costs and benefits, is consistent with the president’s directives with respect to regulation, as set out in executive order 13563, issued on January 18.”

Considering the significance of the standards’ benefits to public health, it is safe to assume that EPA is enacting a delay to gather more complaints about the potential compliance costs of the rule. Industry lobbyists and their allies in Congress have been complaining incessantly about the boiler standards – saying that new environmental protections will hurt the economy.

EPA’s announcement is exactly the kind of news we feared when Obama issued the order in January. While the order did not result in a significant shift in policy, the announcement reinforced conservative rhetoric on regulation. In turn, the order hung agencies out to dry by giving special interests an opening into the rulemaking process. The order also gave agencies cover to bend to industry wishes when the pressure got to be too much to handle in the absence of White House support – cover the EPA is taking advantage of in this instance.

This week, agencies are taking another step consistent with Obama’s executive order. Regulatory agencies must submit to the White House their plans for the ongoing review of rules on the books. Read more here.

For more on the delay of the boiler rule, including why it violates the Clean Air Act, see this excellent post from the Center for Progressive Reform: Lisa Jackson Steps Back (Again) on Boiler Mact.

(Matthew Madia 05/17/11; 0 comments)

House Gets Amnesia, Passes Bill to Rush Oil Drilling

 

The House of Representatives today passed a bill that sets ridiculous and dangerous deadlines for the approval of oil drilling permits. According to Earthjustice, “Sponsored by Doc Hastings (R-WA), H.R. 1229 requires the Department of Interior to decide whether to approve a drilling permit within 30 days after receiving an application and allows only two 15-day extensions of this deadline.”

The bill is titled the “Putting the Gulf of Mexico Back to Work Act,” which would be hilarious if it weren’t so despicable. It’s as though the 235 Republicans and 28 Democrats who voted for the bill have completely forgotten what put thousands in the region out of work in the first place

It’s been just over a year since BP’s Deepwater Horizon rig exploded, killing 11 men and spawning the worst environmental disaster in U.S. history. It also caused incredible economic consequences, costing and continuing to cost the region billions.

The bill is the second of three bills House leadership is pushing to create a “Drill, Baby, Drill” society. The final bill, H.R. 1231, is expected to be voted on tomorrow, and it is likely the worst of the bunch. According to Scott Slesinger at NRDC, “From the pristine Arctic Ocean, to California’s sparkling beaches, to the entire eastern seaboard, leasing for offshore drilling would commence in 2012, and would continue in perpetuity, as the bill requires 50% of unleased acreage in our oceans to be available for leasing every five years.”

America isn’t likely to stop drilling for oil any time soon. But how can Congress be so cavalier when the wounds of oil industry deregulation are still so fresh? We saw what happens when deliberation is sacrificed in the name of expediency; when safety is sacrificed in the name of profits; and when regulators feel more beholden to industry lobbyists than they do to the American public. The basic safeguards the House is attempting to strip away may not prevent another oil spill, but refusing to learn the lessons of the past is sure to cause one.

(Matthew Madia 05/11/11; 0 comments)

FDA Cracking Down on Dangerous Food Imports

 

The Food and Drug Administration (FDA) issued two new standards May 4 intended to protect Americans from potentially contaminated foreign food. From the agency:

The first rule strengthens FDA’s ability to prevent potentially unsafe food from entering commerce. It allows the FDA to administratively detain food the agency believes has been produced under insanitary or unsafe conditions. Previously, the FDA’s ability to detain food products applied only when the agency had credible evidence that a food product presented was contaminated or mislabeled in a way that presented a threat of serious adverse health consequences or death to humans or animals. [...]

The second rule requires anyone importing food into the United States to inform the FDA if any country has refused entry to the same product, including food for animals. This new requirement will provide the agency with more information about foods that are being imported, which improves the FDA’s ability to target foods that may pose a significant risk to public health. 

These are the kinds of commonsense safeguards that we should expect from our government. If a government scientist or other expert suspects that food could be dangerous, he or she should be able to check it out. And at the risk of sounding ignorantly American, if food isn’t good enough for another country, it shouldn’t be good enough for the U.S.

Foodborne illness sickens one in six Americans, hospitalizes 128,000, and kills 3,000 every year, according to the CDC. It’s one of those hazards that we can’t be expected to protect ourselves from without help – help that can come in the form of safeguards established by the FDA and other agencies.

The standards, both issued as interim final rules, are the first display of FDA’s enhanced rulemaking authority provided by the Food Safety Modernization Act, a sweeping food safety reform package signed into law in January after months of legislative deal-making. The rules are effective July 3.

(Matthew Madia 05/06/11; 7 comments)

Snowe Kills Small Business Bill

 

A small business aid bill that the Senate has been working on for months is likely dead, all because one senator became stubbornly wed to an amendment intended to upset the regulatory process and make it more difficult for agencies to protect the public.

Today’s cloture vote on S. 493, a bill to reauthorize the Small Business Innovation Research Program and the Small Business Technology Transfer Program, failed along party lines. 52 Senators, all Democrats and Independents, voted to end debate on the bill (eight short of the 60 necessary). 44 Senators, all Republicans, voted against. (Three Senators didn’t vote.)

The vote indicates that Republicans have withdrawn their support from a bill to help small businesses – an issue that usually transcends party politics. How did it come to this?

The blame can largely be placed on the shoulders of Sen. Olympia Snowe (R-ME), one of the original co-sponsors of the bill. As OMB Watch discusses in today’s issue of The Watcher, Snowe insisted on a vote on a bill she is sponsoring with Senator Tom Coburn (R-OK) as an amendment to S. 493. You can read in The Watcher the various reasons why the Snowe-Coburn bill is a dud. In short, it would dump a heap of new requirements on regulatory agencies, making it insanely difficult for them to set new safeguards for consumers, families, patients, workers, the environment, and the economy.

Senate Majority Leader Harry Reid refused to let the amendment come up for a vote. He pointed out that no hearings had been held on the legislation, and that it was not relevant to the debate over S. 493.

In some circumstances, it would be reasonable to place some of the blame for S. 493’s failure on Reid as majority leader. But not here. The Senate has been debating S. 493 since early March. It is an important but relatively noncontroversial bill that should not be diverting lawmakers’ time and taxpayer resources to the extent it has.

150 amendments were introduced (an unfortunate but common side effect of noncontroversial legislation), and Reid took great care to give many of them a fair shake. It was time to move on.

Many in Congress have spent considerable hours this year demonizing regulation. They say that the safeguards set by agencies burden small businesses and kill jobs. But today’s vote proves that the anti-regulatory crowd doesn’t care about small businesses nearly as much as it cares about small-government ideology, party politics, or the campaign contributions that come from the biggest corporations. In fact, today’s vote may prove those in the anti-regulatory crowd don’t care about small businesses at all – they were willing to sacrifice entrepreneurs at the altar of another master.

(Matthew Madia 05/04/11; 1 comment)