A new executive order, "Identifying and Reducing Regulatory Burdens," was issued yesterday, focusing exclusively on reducing the costs of regulations to businesses. This is the latest in a series of "aggressive efforts" to reform the regulatory system by cutting these costs.
On Jan. 18, 2011, President Obama issued Executive Order 13563, "Improving Regulation and Regulatory Review," instructing federal agencies to develop plans to review existing regulations to identify rules that are "outmoded, ineffective, insufficient, or excessively burdensome, and to modify, streamline, expand, or repeal them." Twenty-six agencies released final plans to review rules under E.O. 13563.
After the release of the retrospective review plans, Office of Information and Regulatory Affairs (OIRA) Administrator Cass Sunstein issued an Oct. 26, 2011, memorandum on the "Implementation of Retrospective Review Plans," directing agencies to "give high priority to those reforms that will promote economic growth, innovation, competitiveness, and/or job creation . . . [including] those with the greatest potential to produce significant quantifiable cost savings and significant quantifiable reductions in paperwork burdens." The memo made no mention of improving standards or the enforcement of safeguards that benefit the public, which is, after all, the mission of our federal regulatory agencies. Another Sunstein memo, issued in March, directed agencies "to take account of the cumulative effects of new and existing rules" with a goal of ensuring "against unjustified, redundant, or excessive requirements."
Yesterday's order requires agencies to give priority to changing rules to reduce the material costs to business. The potential costs to health and safety are not mentioned. The E.O. also requires agencies to ask for public suggestions about which rules to review and modify and to regularly report the status of their review efforts to OIRA. This will be an invitation to industry lobbyists and trade associations to submit new requests to have health and workplace standards watered down.
Our analysis of the agencies' look-back plans revealed that a majority of the public comments were from industry representatives urging agencies to eliminate or significantly weaken many public health and safety rules that are unpopular with special interests.
Although the first executive order (E.O. 13563) instructed agencies to review rules to determine if they should be "modified, streamlined, expanded, or repealed" (emphasis added), the administration seems to have left out the possibility that a rule could be expanded to benefit public health and safety. In a blog post that Cass Sunstein also released yesterday, the administrator focused solely on streamlining and eliminating rules with no mention of using the look-back process to enhance or strengthen protective standards or safeguards.
Environmental, public health, and worker safety groups had high hopes for the Obama administration after eight years of the business-biased rulemaking that occurred under the Bush administration. This new E.O. and OIRA's recent actions seem eerily reminiscent of that period.
(Katie Greenhaw 05/11/12; 0 comments)A new poll released April 24 by the Small Business Majority found that small business owners strongly support both government investments in clean energy and environmental standards that limit air emissions from power plants. The poll shows once again that small business owners believe standards and investments would drive innovation, create jobs, make our air cleaner, and protect Americans' health.
The poll surveyed a politically diverse sampling of 600 business owners that had fewer than 100 employees in six different states. Eighty-two percent said they favor the U.S. Environmental Protection Agency (EPA) rules regulating mercury and other toxic substances that get into the air when power plants burn fossil fuels; 76 percent said they favor EPA rules controlling greenhouse gases from power plants. Over 50 percent of owners support EPA rules curbing carbon pollution and other emissions even if they mean an increase in utility prices.
The majority of small business owners (71 percent) also believe that government investments in clean energy and energy efficiency play an important role in boosting the economy and creating jobs now. Fifty-eight percent said that the failure of the bankrupt company Solyndra does not mean the government should stop investing in renewable energy technologies like solar and wind.
Polling results released in September found similar levels of support for clean energy and environmental standards. In that poll, large majorities said they support "bold" environmental initiatives to increase fuel efficiency and support EPA’s regulation of carbon emissions.
These results echo earlier polls and surveys and demonstrate the disconnect between the overheated anti-regulatory rhetoric in the House and the real concerns of small business owners. When asked to name the biggest one or two problems facing their businesses, 70 percent of owners cited the rising costs of doing business – such as higher fuel and electricity costs (36 percent) and higher material and supply costs (34 percent) – as one of their two biggest problems. About a quarter said the lack of consumer demand remained their biggest problem. (In a poll released in February, a majority of small business owners named weak customer demand as the primary problem facing their businesses.) Only 16 percent of the respondents in the latest survey said regulation is one of their biggest problems.
"[Small businesses] understand that to survive in this tough economy they need creative solutions to curb costs and increase their competitive edge," said John Arensmeyer, founder and CEO of Small Business Majority. "These include continued government investments in clean energy and the enforcement of standards that reduce harmful emissions in their communities."
(Katie Greenhaw 04/26/12; 14 comments)Last week, a coalition of environmental and public health groups filed a lawsuit to compel the U.S. Environmental Protection Agency (EPA) to regulate the waste created when coal is burned (commonly known as coal ash). Coal ash is disposed of in almost every state, and areas near disposal sites can face increased risks of cancer and other diseases caused by drinking water contamination and exposure to toxins. The suit calls for EPA to set a deadline to adopt federal coal ash protections.
New calls for the regulation of coal ash began in 2008 after an embankment holding wet coal ash ruptured at the Tennessee Valley Authority's Kingston plant, releasing 5.4 million cubic yards of coal ash sludge that buried a community and severely contaminated a nearby river. Coal ash can contain arsenic, lead, chromium, and other heavy metals, all of which poison humans. Roughly five times more coal ash sludge engulfed the area around Kingston than oil spilled into the Gulf of Mexico during the BP oil spill disaster.
More than three years after the Kingston incident, and nearly two years after EPA proposed options for regulating coal ash, no final rules have been issued. Now, Congress is considering legislation that would limit federal oversight and authority over coal ash.
Earthjustice, on behalf of eleven groups, filed suit April 5 in U.S. District Court for the District of Columbia. The organizations are suing the agency under the Resource Conservation and Recovery Act (RCRA), which "requires the EPA to ensure that safeguards are regularly updated to address threats posed by wastes." Earthjustice attorney Lisa Evans stated, "It is well past time the EPA acts on promises made years ago to protect the nation from coal ash contamination and life-threatening coal ash ponds."
In 2010, EPA proposed two options for regulating coal ash:
Both options would require that surface impoundments of coal ash have protective liners, mandate groundwater monitoring for landfills, and provide for corrective action where contamination is found (though the corrective action requirements are more extensive under the first option).
But Congress is now considering the Coal Residuals Reuse and Management Act (H.R. 2273). The bill passed the House Oct. 14 by a vote of 267-144 despite criticism from Democrats on the Energy and Commerce Committee. Its Senate companion bill, S. 1751, was introduced in October by Sens. John Hoeven (R-ND) and Kent Conrad (D-ND), after coal ash ponds in their state received "poor" inspection ratings. The bills would limit federal oversight and require the EPA to defer to states with respect to the regulation of coal ash. Most states do not have standards in place to protect against the dangers of uncontrolled coal ash, according to an August report from Earthjustice and the Appalachian Mountain Advocates.
Josh Galperin with the Southern Alliance for Clean Energy, one of the organizations bringing suit, said: "It has been over two years since EPA started the coal ash rulemaking process and over three years since the Kingston disaster and still we have no comprehensive safeguards. If you ignore the growing problem of coal ash contamination and the people at risk for future disasters you could chalk this up to bureaucratic delay. Looking at the big picture, however, and despite federal laws requiring frequent review, it has been 30 years since EPA last addressed ash contamination. The people who drink, fish, swim, boat, play or live around water cannot wait any longer."
The suit asks the court to require that EPA complete a review of the regulations applying to coal ash and issue necessary revisions as soon as possible. No court date has been set.
(Katie Greenhaw 04/10/12; 8 comments)(Katie Greenhaw 03/27/12; 6 comments)
Today, the Senate will move forward with votes on transportation legislation that could affect Americans' health and the environment. Several amendments to the bill target two issues – the Keystone XL pipeline and the EPA 's lifesaving boiler rule, which limits hazardous air pollution from boilers and process heaters at industrial facilities.
UPDATE: This afternoon, Sen. Wyden's amendment on the Keystone pipeline was defeated 33-65. Sen. Hoeven's amendment on Keystone and Sen. Collins' boiler rule amendment both failed more narrowly, by votes of 56-42 and 52-46, respectively.
(Katie Greenhaw 03/08/12; 6 comments)In a new national poll commissioned by the American Sustainable Business Council, Main Street Alliance, and Small Business Majority, small business owners named weak customer demand, not standards and safeguards, as the most important problem facing their businesses right now. In fact, a majority of the small business owners surveyed agreed that fair, effective regulation of business is necessary to ensure competitiveness and fairness in a modern global economy. Small business owners also support policies that ensure environmental health, food safety, and worker protection for customers and communities. The results show that small businesses want real solutions to actual problems, not more anti-regulatory rhetoric from policymakers.
The polling surveyed a politically diverse cross-sampling of small business owners (50 percent identified as Republican) with fewer than 100 employees. Small business owners cited weak customer demand as the most important problem they face, with more than twice the number of employers citing it over any other issue. The rising cost of health coverage and other benefits came in second, and the level of government regulation came in at a distant third.

Similarly, small business owners do not view cutting regulations as a solution to the nation's ongoing jobs shortage. When asked what would do the most to create jobs, the majority cited eliminating incentives for employers to move jobs overseas. Reducing regulations ranked fifth on the list, with only 10 percent supporting that approach.
Also included in the findings:
These results echo those of previous polls and surveys illustrating the clear disconnect between overheated Capitol Hill rhetoric about regulations and the real problems facing small business owners. The poll report concludes that “[r]egulations, while a hot topic within the Beltway, are not Main Street small business owners’ main concern, and they would rather their representatives focus their efforts on other job creating strategies.” As stated by Main Street Alliance leader Jim Houser in yesterday's press release, “These survey results underscore what Main Street small business owners have been saying all along: we need more customers, more demand, not deregulation.” Houser said that in his experience, “smart standards help create jobs and promote innovation in the U.S. economy.”
As anti-regulatory attacks continue in Congress, let’s hope these poll results serve as a reminder that regulation is not the problem, and gutting public protections is not the solution.
(Katie Greenhaw 02/02/12; 14 comments)On Oct. 31, a landslide at the Wisconsin-based We Energies Oak Creek Power Plant sent piles of coal ash, along with dredging equipment and debris, into Lake Michigan. Thankfully, there were no injuries, but the incident is reminiscent of the disastrous 2008 coal ash spill in Kingston, TN – where a failed impoundment released 5.4 million cubic yards of coal ash that buried a community and severely contaminated a nearby river – and raises concerns about how to regulate the storage and disposal of coal ash.
Coal ash is a combustion byproduct that can contain arsenic, lead, chromium, and other heavy metals, all of which pose significant health threats to humans. Because the toxins in coal ash can leach from landfills and surface impoundments into rivers, lakes, and streams, there are dangers in handling coal ash, even if it is recycled for beneficial uses. According to the Milwaukee Journal Sentinel, We Energies reported coal ash had not been used as a fill material near the site in decades. But Cheryl Nenn, of Milwaukee Riverkeeper, said that the group wants "the environmental agencies and We Energies to study how much of that coal ash, if any, went into Lake Michigan because it does pose such a threat to human health and the environment." Investigators from Wisconsin’s Department of Natural Resources are examining potential contributing factors to the bluff collapse and subsequent mudslide, including an unlined storm water retention pond near the coal ash, water seepage from the pond into the coal ash, and construction activity, reported the Journal Sentinel.
Calls for greater federal regulation and oversight of coal ash followed the Tennessee disaster in 2008, but powerful industry opposition has obstructed efforts to impose greater oversight. And last month, a bill passed the House that would limit federal authority and require the EPA to defer the regulation of coal ash to states. Monday's coal ash spill in Wisconsin serves as a strong reminder of the potential dangers of coal ash and the need for consistent nationwide standards, especially given the poor safety ratings reported for coal ash impoundments in many states.
The U.S. Environmental Protection Agency (EPA) proposed two options for regulating coal ash in 2010. The first option would designate coal ash as a hazardous waste, requiring special handling, transportation, and disposal, and would closely monitor any potential reuse. The second would regulate coal ash in a way used to control less toxic wastes such as household garbage – an option that would limit EPA's responsibility and authority over coal ash management. Both regulatory options would require that surface impoundments of coal ash have protective liners, mandate groundwater monitoring for landfills, and provide for corrective action where contamination is found (though the corrective action requirements are more extensive under the first option). Already delayed, agency standards could be undermined by current legislative efforts.
The Coal Residuals Reuse and Management Act (H.R. 2273) passed in the House Oct. 14 by a vote of 267-144 and received votes of support from every Wisconsin representative. But the bill also incurred criticism from Democrats on the Energy and Commerce Committee and environmental groups. Earthjustice condemned the House for putting "the interests of corporate polluters ahead of the American public," and is urging citizens to take action against the Senate companion bill, S. 1751.
S. 1751 was introduced by Sens. John Hoeven (R-ND) and Kent Conrad (D-ND), despite the fact that coal ash ponds in their state recently received "poor" inspection ratings. EPA is releasing contractor reports assessing the structural integrity of impoundments containing coal ash at coal-fired power plants across the country. So far, a number of impoundments have been given both a "significant" potential hazard rating and a "poor" inspection report, including three in North Dakota.
All of this begs the question: How many spills, buried towns, and poisoned drinking water supplies will it take before Congress and the industry relent and allow the EPA to do its job to protect the American people from toxic coal ash?
(Katie Greenhaw 11/02/11; 3 comments)A memorandum issued Oct. 26 by the Administrator of the Office of Information and Regulatory Affairs (OIRA), Cass Sunstein, instructs federal agencies to submit reports on the implementation of their retrospective review plans for periodically evaluating existing rules. The plans were required by President Obama's Jan. 18 Executive Order 13563, "Improving Regulation and Regulatory Review" (E.O. 13563), and thus far in the process, agencies have largely managed to keep their focus on their main mandate: protecting the public.
OMB Watch followed the development of the plans and launched a webpage with background information and our analysis of some of the final plans, which were released in late August. Our analysis showed that agencies worked to protect their primary missions while looking for cost savings. We hope agencies continue to do this when implementing their plans and conducting ongoing reviews and that they resist political and industry pressure to undo beneficial standards and safeguards.
The executive order instructed federal agencies to develop plans for the ongoing review of existing rules to identify those that are "outmoded, ineffective, insufficient, or excessively burdensome, and to modify, streamline, expand, or repeal them." On June 14, OIRA issued a memorandum that provided guidelines for what agencies should include in the final plans.
The latest memo focuses on the implementation of the plans. It requires agencies to regularly report on the status of their retrospective review efforts and provides a suggested template for the reports. For the next year, agencies must submit reports in January, May, and September, and in January and July for each year thereafter. The template asks agencies to describe, quantify, and monetize anticipated savings, and the memo instructs agencies to “give high priority to those reforms that will promote economic growth, innovation, competitiveness, and/or job creation.”
As directed by OIRA, agencies solicited public comment when developing their plans. The vast majority of comments came from industry members and associations. The industry comments tended to recommend two types of revisions: eliminating or easing rules they saw as burdensome and standardizing or clarifying rules in which compliance was redundant or confusing. Many comments targeted specific rules in the pipeline that are unpopular with industry groups, such as the U.S. Environmental Protection Agency’s (EPA) clean air rules. The agencies rightfully declined to use the look-back process to overturn important protections or overhaul rules currently in process. Instead, the plans generally focused on ways to streamline and clarify rules and reduce paperwork burdens through measures like electronic reporting.
The memo indicates that OIRA is ensuring that agencies follow through with implementing their review plans.
(Katie Greenhaw 10/28/11; 22 comments)In the Oct. 12 edition of The Watcher, we highlighted the multi-state listeriosis outbreak as an example of the high stakes of food safety regulation. Linked to cantaloupes from Colorado-based Jensen Farms, the deadliest foodborne disease outbreak in a decade has now killed 25 people. This week, the U.S. Food and Drug Administration (FDA) released a report from an investigation conducted in conjunction with the Centers for Disease Control and Prevention (CDC) that reveals some of the factors potentially contributing to the listeria contamination.
FDA’s "Environmental Assessment" included interviews with Jensen Farms management, on-site visits to the fields and facilities, and product sampling. The assessment concluded that facility design, equipment design, and post-harvest practices may have contributed to the growth and spread of the contamination. In addition, issues at the packing facility and cold storage were identified as the factors that most likely contributed to the contamination of the fresh cantaloupe. For example, the assessment found that the design of the facility allowed water to pool on the floor, that the "floor was constructed in a manner that was not easily cleanable," and that "the packing equipment was not easily cleaned and sanitized."
To prevent future contamination, FDA recommended that industry use good agricultural and management practices set out in the "Guide to Minimize Microbial Food Safety Hazards for Fresh Fruits and Vegetables," produced by the FDA and the U.S. Department of Agriculture. The recommendations also emphasized that good practices should be used in packing facilities, as well as growing fields.
On Oct. 18, FDA sent Jensen Farms a warning letter listing violations found during the inspections and the locations within the facilities that tested positive for outbreak strains of listeria. The letter cautioned that FDA may take further action if Jensen Farms does "not promptly correct these violations," including seizing products or enjoining the company from continuing operations.
As investigations help shed light on the causes of contamination, regulators must be able to ensure that all food producers are consistently implementing the most protective safety and prevention practices available. The public should not have to worry that the next bite of cantaloupe, spinach, lettuce, hamburger, turkey, or other food could lead to severe illness or death from a foodborne illness.
(Katie Greenhaw 10/21/11; 10 comments)The House passed by a vote of 267-144 the Coal Residuals Reuse and Management Act (H.R. 2273), which would require the U.S. Environmental Protection Agency (EPA) to defer to states with respect to the regulation of coal combustion residuals, or coal ash, and limit federal oversight. The problem with leaving the regulation of coal ash to the states is that most do not have standards in place to protect against the dangers of uncontrolled coal ash, according to an August report from Earthjustice and the Appalachian Mountain Advocates.
Coal ash is a byproduct of coal combustion and can contain arsenic, lead, chromium, and other heavy metals. The toxins in coal ash can leach from landfills and surface impoundments into rivers, lakes, and streams. New calls for regulation of coal ash began in 2008 after an impoundment in Kingston, TN, failed, releasing 5.4 million cubic yards of coal ash that buried a community and severely contaminated a nearby river.
EPA proposed two options for regulating coal ash in 2010. The first option would designate coal ash as a hazardous waste, requiring special handling, transportation, and disposal, and would closely monitor any potential reuse. The second would regulate coal ash in a way used to control less toxic wastes such as household garbage – an option that would limit EPA's responsibility and authority over coal ash management.
The Coal Residuals Reuse and Management Act would take the decision out of scientists' hands and prevent EPA from regulating coal ash as a hazardous waste while failing to ensure that coal ash is adequately regulated by the states. EPA conducted a technical analysis of the legislation at the request of Rep. Henry Waxman (D-CA), ranking member of the Energy & Commerce Committee. The completed analysis has raised concerns from Democratic staff that the bill does not establish any legal standard for state programs, authorize meaningful review of state programs, or ensure other appropriate criteria for the disposal of coal ash. According to the staff, H.R. 2273 “has not been the subject of any Committee hearing and the final text was made available only moments before it was to be reported out of Committee.” These concerns were echoed during the floor debate preceding the bill’s passage. Rep. James Moran (D-VA) said that the bill would create “a patchwork of compliance.”
Environmental and public interest advocates argue that the bill circumvents the public participation process and serves special interests to the detriment of public health and the environment. Reacting to the vote, Earthjustice condemned the House for putting “the interests of corporate polluters ahead of the American public.”
Update: Sens. John Hoeven (R-ND) and Kent Conrad (D-ND) have introduced a companion bill identical to H.R. 2273. The senators are supporting a bill that would undermine federal efforts to ensure proper disposal of coal ash despite the fact that coal ash ponds in their state receive "poor" ratings, according to an Earthjustice press release.
(Katie Greenhaw 10/14/11; 7 comments)