Blog Posts in Protecting the Public

New Poll Shows Small Business Owners Value Regulation, Name Weak Demand as the Primary Obstacle to Job Creation

 

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.

SBM Feb 2012 poll graph (courtesy Small Business Majority)
Graph courtesy of Small Business Majority

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:

  • Small business owners see regulations as a necessary part of a modern economy: 86 percent of small business owners agree some regulation of business is necessary for a modern economy, and 78 percent said some regulations are important to protect small businesses from unfair competition and to level the playing field with big businesses.
  • Respondents feel strongly that specific regulations play an important role: 84 percent support policies that ensure food safety for businesses and customers that buy or sell food products, and 80 percent support disclosure and regulation of toxic materials.
  • Small business owners also support environmental quality and clean energy policies: 79 percent of small business owners support having clean air and water in their community in order to keep their families, employees, and customers healthy, and 61 percent support standards that move the country toward energy efficiency and clean energy.
  • The owners also highlighted the importance of enforcing rules on the books, including against large corporations.

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; 2 comments)

Standing Up for Credit Card Customers' Right to Know

 
CFPB logo

Yesterday, the comment period ended on the Consumer Financial Protection Bureau's (CFPB) proposal to create an online database of customer complaints about credit card companies. Here's an update on where things stand:

We delivered more than 800 of your comments to the CFPB in response to our action alert. Thank you to everyone who stood up to support government transparency and consumers' right to know.

OMB Watch also filed detailed comments on the proposal. Above all, we emphasized how the CFPB's innovative proposal would benefit the public:

We applaud the CFPB's proposal as a thoughtful and innovative mechanism to empower consumers, improve market functioning, encourage corporate accountability, and uphold government transparency.

We also described some of the ways the database would help consumers. For instance, customers shopping for a credit card would be able to read about other customers' experiences and make more informed choices. Ultimately, transparency could foster competition by encouraging companies to change disliked practices or become more responsive to their customers.

Our comments also recommended a few changes to make the policy even stronger. Most importantly, we urged that the public be able to read a customer's actual complaint and the credit card company's response, which would allow the public to better understand and evaluate the complaints.

In addition to our filing, OMB Watch also signed onto a joint set of comments, spearheaded by Consumer Action and endorsed by 21 organizations, including the NAACP. The joint comments demonstrate the broad agreement that this proposal does right by consumers. We hope the CFPB will move forward expeditiously to turn this important idea into reality.

(Gavin Baker 01/31/12; 2 comments)

President Obama: You Had Me Until Fracking

 

In last night’s State of the Union address, President Obama reiterated his support for the development of clean energy sources that will create jobs and protect the environment. But while developing clean energy is essential for moving us into the 21st century energy marketplace, the way we build our clean energy future also matters. We must develop energy without harming public health and the environment.

A natural gas extraction process, commonly referred to as fracking, was cited in last night’s State of the Union as an example of clean energy. But using fracking to extract natural gas is anything but clean. In fact, the process produces more greenhouse gas emissions over time than traditional methods of oil drilling or coal mining, according to a Cornell University Study. In addition, fracking poses a great risk to public health and property, as evidenced by the multiple documented cases of severe water contamination near fracking sites, including water than can be actually set on fire as it comes out of the faucet.

Though Obama pledged to "develop this resource without putting the health and safety of our citizens at risk," it is unclear as to how this would be accomplished. A loophole in the 2005 energy law (often called the Cheney or Halliburton loophole) granted oil and gas industries an exemption from the Safe Drinking Water Act. This means the Environmental Protection Agency (EPA) cannot require drilling companies to disclose the toxic chemicals used in fracking, or limit their activities in order to protect drinking water. And, following an order from Congress, the EPA has not yet finalized an important national study on the potential impacts of fracking on drinking water. Thus, the public remains in the dark about the chemicals used in fracking, as well as the risks they pose to their drinking water.

The good news is that President Obama pledged to require "all companies that drill for gas on public lands to disclose the chemicals they use." Government agencies and the public certainly need more information on the health and environmental risks of fracking, and we're glad to hear President Obama promise to make this information available. But in addition to full disclosure on the public and environmental impacts of natural gas extraction, protecting public health requires the development of consistent standards and safeguards to ensure that communities near fracking sites are fully protected. To develop these standards, full oversight authority must be restored to the EPA.

It may be possible to use fracking to extract natural gas safely, under the proper conditions and with sufficient controls. But without more information on the risks of fracking, and without the proper safeguards in place, we are taking a huge gamble with our water supply, farmland, and the health and safety of our people by aggressively pursuing this type of natural gas extraction. This is a bet we simply shouldn't take - without a full review of our risks and without the proper safeguards in place.

(Sofia Plagakis 01/25/12; 1 comment)

Rushing To a Full Stop: Obama Gets It Right When He Talks About the Keystone Pipeline

 
Rejecting the Keystone XL pipeline this afternoon, President Obama blamed a short-circuited process that didn't allow the State Department to gather all the information it would have needed to consider before approving the permit.
 
In a statement, Obama said that "the rushed and arbitrary deadline insisted on by Congressional Republicans prevented a full assessment of the pipeline’s impact, especially the health and safety of the American people, as well as our environment."  Last November, he explained it this way:
 
"Because this permit decision could affect the health and safety of the American people as well as the environment, and because a number of concerns have been raised through a public process, we should take the time to ensure that all questions are properly addressed and all the potential impacts are properly understood.  The final decision should be guided by an open, transparent process that is informed by the best available science and the voices of the American people."
 
Obama is exactly right on those points.  At their core, agencies basically have one mission: to protect the well-being of the public.  The regulatory process is supposed to be about collecting and evaluating public input and the best available evidence, then making the decisions which best achieve that core goal.
 
As we wrote on Jan. 10, congressional Republicans made this virtually impossible by slipping a provision into the payroll tax bill that demanded a final ruling on the pipeline permit within 60 days.  This kind of obstructionism is just one in a string of examples of how political meddling in the regulatory process makes it harder for agencies to protect the American public.   

 

(Jessica Randall 01/18/12; 1 comment)

The EPA Shines a Light on Transparency: Makes Greenhouse Gas Data Publically Available for the First Time

 

On Jan. 11, the U.S. Environmental Protection Agency (EPA) released greenhouse gas (GHG) data to the public for the first time. Through an online tool, the public will be able to access critical air pollution data. With this new data, the public can hold industry accountable to ensure that emitters take responsibility for the way they are contributing to climate change.

The online tool presents 2010 GHG data from 6,700 large facilities around the country in nine industry groups, including suppliers of certain fossil fuels and industrial gases. The public will be able to use the data to analyze sources of GHG pollution in their areas, compare facility and industry performance, and eventually track trends. Enterprises can use the data to compare their performance against other companies in their sector, to set a baseline for their own reductions in carbon pollution, and to increase efficiency and save money. State and local officials can also use the data to compare the effectiveness of their policies and practices with those operating in other parts of the country. The 2010 GHG data shows that Texas has the highest total reported emissions in the country, and Indiana the second highest. Not surprisingly, power plants were the largest stationary sources for direct emissions in the country by far, followed by petroleum refineries.

The site offers various options for searching and viewing the new data. For instance, users can search for data by facility, location, industrial sector (e.g., power sector, chemical industry), and the type of gas emitted (e.g., carbon dioxide). Data can be viewed on maps of the nation, specific states or even counties. Highlighted blue circles denote the number of facilities reporting in each location. Users can also view data on lists (i.e., data tables), bar and pie charts, and tree maps. Viewing the data on the tables (rather than on the maps or charts) allows users to categorize the data according to the facilities or industries that produce the most pollution. The tool allows users to download data in Excel files, which can be used to conduct further analysis and includes data on parent companies.

One short-coming of the data, which EPA cannot control, is that it reports emissions from a limited set of facilities - those that are required to report to EPA. There is no data from transportation or agricultural facilities. On the plus side, an additional 12 source categories will begin reporting emissions data this year.

Public reporting of pollution is a powerful tool in the hands of citizens - it fosters public awareness and/or confirmation of concerns about local environmental problems. It gives citizen activists the evidence they need to push for significant reductions in emissions in their communities. After the Emergency Planning and Community Right-to-Know Act created the Toxics Release Inventory (TRI), a national database of toxic emissions reported by industrial sources was established in 1986, the private sector has reduced the amount of toxins it releases by more than half. We hope this online tool will achieve similar results in reducing emissions.

(Sofia Plagakis 01/12/12; 2 comments)

Grade Inflation Really Matters If It Means You Catch Listeria

 

Today, government officials, academics, and the cantaloupe industry are meeting at the University of California, Davis, to try to determine how the 2011 Listeria outbreak could have begun at a facility that had just received a "superior" rating from a third-party food safety auditor.   A report issued earlier this week places the blame squarely on the third-party audit system, which allows private companies hired by food producers themselves to perform food safety inspections.  

Jensen Farms hired its auditor, which in turn hired a subcontractor, off a list provided by one of its large buyers. According to the report, that subcontractor visited Jensen Farms on July 25, 2011, and found three "major deficiencies," three "minor deficiencies," and five "additional instances of non-compliance." Even so, Jensen Farms was given a grade of 96%, which is considered a "superior" rating. 
 
The front page of the audit report said, "This is a packing facility for cantaloupes which are washed by a spraybar roller system, graded, sorted by size, packed into cartons and stored in dry coolers. No anti-microbial solution is injected into the water of the wash station." The problem with this is that FDA guidance says that melon producers need to use an anti-microbial solution in their washing water – and its absence from Jensen Farms' facility is one of the conditions FDA says led to the listeriosis outbreak.
 
This report shouldn't come as a surprise to anyone: third-party audits often fail to catch food safety problems. As Democrats on the House Energy and Commerce Committee pointed out in a letter to Food and Drug Administration (FDA) Commissioner Margaret Hamburg: 
  • In 2009, a third-party auditor gave a peanut butter company a "superior" rating only six months before Salmonella in its products killed nine people and made 691 others sick.
  • In 2010, a third-party auditor gave an egg company not only a "superior" rating, but also a "recognition of achievement" two months before a Salmonella outbreak sickened more than 1,600 people and led to the largest egg recall in American history.
"Like it or not, our food safety system relies heavily on third-party auditors," that letter continued. While federal inspections of food producers are becoming more frequent because of the Food Safety Modernization Act (FSMA), FDA still doesn't have the resources to send inspectors out to producers like Jensen Farms more often than every three to five years. In the meantime, major food retailers often require producers to hire third-party auditors, which are private companies not subject to any FDA regulations.  FSMA requires FDA to develop an accreditation system and model audit guidelines – but only for third-party audits of imported foods, though industry officials say the new standards are likely to "influence" domestic audits, as well.
 
Right now, it's not hard to pass a third-party audit: in fact, the company Jensen Farms hired gave out passing grades 98.7% of the time in 2010. With results like we've seen over the past few years, it's hard to figure out why Congress hasn't given FDA the resources to send federal inspectors to food production facilities more often – or at least to more closely oversee the third-party auditors who are supposed to be filling in the gaps.
(Jessica Randall 01/11/12; 1 comment)

The Keystone Pipeline: The Mirage of Jobs

 

Last week, Congressional Republicans slipped provisions into a payroll tax bill that would try to force the President to make an early decision on the controversial Keystone XL pipeline project. Under the bill, President Obama would face a 60-day deadline to rule on the project, which has not yet received the legally required economic, environmental and safety reviews.

Though Congressional Republicans claim the project would create jobs, the Keystone XL is not the job-creation panacea it's being made out to be. In fact, the Keystone project could actually cost taxpayers jobs.

The $7 billion Keystone XL would transport tar sands, which are more corrosive than crude oil, from Alberta, Canada, through America's heartland to Texas. Thousands of communities face the prospect of having a major new pipeline flowing under their homes and businesses with all the risk of leaks and explosions that come with it. The Keystone oil pipeline project is opposed by many public interest organizations, but is supported by industry groups and many Republican lawmakers.

The Job Creation Myth

The pipeline company, TransCanada, says the project could create 20,000 "direct" jobs, most of them temporary. However, the oil company's numbers are grossly inflated.

The job estimate is based on a poorly documented and unsubstantiated study commissioned by the oil company itself, referred to as the Perryman Group study. The study inflates the job estimate by calculating jobs on a yearly basis, not the total number created as a result of the pipeline. For instance, employing 10,000 people for two years would equal 20,000 jobs by the company's count. Additionally, the estimate includes non-U.S. jobs created in Canada, "where about a third of the $7 billion pipeline would be constructed."

The oil company's 20,000 job estimate is inconsistent with government and academic studies. The State Department, the lead federal agency on the pipeline project, estimates that the project would bring 5,000 to 6,000 temporary construction jobs. An independent assessment by Cornell University's Global Labor Institute found that the Keystone XL would create between 2,500-4,650 temporary positions for two years, with only about 50 new permanent pipeline jobs in the United States.

The Keystone Pipeline Could Cost Jobs

The Keystone XL, according to the Cornell study, could actually kill more jobs than are created in the long run. Any jobs created by the project could be outweighed by the pipeline's hidden costs that slow job growth or cost jobs in other sectors: higher gas prices for Midwest consumers, toxic oil spills, and damages to local agriculture and tourism. For instance, TransCanada has already admitted that the project would increase gas prices for Americans by driving up the price of heavy crude in the region. The project could cost Midwesterners 10 to 20 cents more per gallon for gas and diesel fuel. The higher fuel prices for consumers in the Midwest would kill thousands of trucking and tourism jobs.

The history of pipelines also shows that spills are unavoidable. In 2010, pipeline spills and explosions in the United States killed 22 people, released more than 170,000 barrels of petroleum, and caused $1 billion dollars in damage. In its first year of operation, over thirty spills have occurred with the Keystone pipeline (Phase 1 and 2) in Canada and the United States, despite claims that the Keystone XL meets "world-class safety and environmental standards."

Conclusion

The highly exaggerated estimates from industry need to be exposed and the long-term potential costs of this project must be carefully weighed. Federal officials are taking the time they need to gather information and appropriately examine trade-offs regarding gas costs, water safety concerns, and public health risks from spills. We need to support scientific and expert evaluation of the evidence before rushing into a project that will have significant and long-lasting impacts on the country.

(Sofia Plagakis 12/22/11; 15 comments)

Congressional Budget Office Says Deregulation Will Not Create Jobs

 

On Tuesday, the Congressional Budget Office (CBO) released a report that concludes that deregulation will not create jobs. The report is the latest piece of evidence that the ongoing congressional attacks on public protections are misguided, at best.

Since the 112th Congress began its work in January, representatives and senators have offered up a slew of bills that would gut crucial safeguards. Some of these attacks, like the TRAIN Act and the Coal Residuals Reuse and Management Act have specifically targeted standards that would protect millions of Americans from dangerous air pollution and toxic waste. Others, like the REINS Act and the Regulatory Accountability Act, are broad and would grind the rulemaking process to a halt, endangering Americans' quality of life. Despite their supporters' claims, these bills do not constitute a jobs plan. Indeed, the bills' sponsors seem to be motivated by scoring points for future elections and garnering campaign cash.

The CBO report is just the most recent publication showing that there is no trade off between jobs and a good regulatory system. Studies by the Economic Policy Institute, statistics compiled by the U.S. Department of Labor, and surveys by McClatchy Newspapers, the National Association for Business Economics, and the Small Business Majority strongly reinforce this point. Individual business owners have testified – on camera – that most regulations are reasonable and that killing off regulations will not generate more jobs. You can listen to some of their stories here, here, here, and here.

Let's be clear: the economy crashed in 2008 because key regulations in the financial sector had been removed. These changes allowed banks and other institutions to take massive risks with other people's money as they raked in record profits themselves. Rolling back environmental, health, and safety standards is another version of this phenomenon: deregulation will allow particular companies to rake in higher profits while the risks and dangers to everyday Americans accumulate.

It's time for conservatives to give up their tired, discredited talking points about "job-killing" public protections and stop promoting efforts to kill rules that safeguard the public. Instead of wasting time with unconstructive attacks on our regulatory system, Congress should focus on making crucial investments in our nation's infrastructure and economy that will get Americans back to work.

(Jessica Randall 11/18/11; 3 comments)

Regulatory Accountability Act Would Undermine Crucial Protections for the American People

 

Eliminating lead in children's toys. Requiring seatbelts in automobiles. Reducing coal dust in mines. Preventing unsafe drugs and foods from entering the marketplace. Outlawing predatory loan rates and lending practices. If the bill deliberately mislabeled the Regulatory Accountability Act (RAA) had been put in place in 1960, none of these protections for the American people could have been developed.

A paper the Coalition for Sensible Safeguards (which I co-chair with Public Citizen's Robert Weissman) released Nov. 16 describes a number of federal standards and safeguards that have been designed to protect the health, safety, and general welfare of the American people that would have been blocked by the RAA (H.R. 3010/S. 1606) had it been law in earlier decades. The paper also spotlights several pending rules that are unlikely to go through should the RAA pass – rules that implement financial, workplace, and consumer protections that have already been passed into law by Congress.

Because the RAA is focused on changing regulatory processes, it hasn't received much attention in the traditional media or from many citizens and public interest groups who are intensely concerned with defending and improving health, safety, and environmental standards. This is a huge mistake. This bill is a backdoor way for conservatives to prevent the implementation and enforcement of decades of public protections – without actually having to vote against the Clean Air Act or the Clean Water Act. Instead of putting themselves on record as allowing higher arsenic levels in our water and higher levels of air pollution, the RAA allows conservative members of Congress to simply "muck up" the implementation and enforcement of these laws by allowing more special interest influence of regulatory agencies, more litigation by deep-pocketed industry lobbyists, and ridiculous hurdles to rulemaking.

What's at stake here is nothing less than the system of public protections that has been built up over the past six decades – the system that led to dramatic improvements in air and water quality, food and product safety, and public health. While trade associations and business lobbyists constantly complain about the government regulations that produced these outcomes, businesses have learned to adapt, the economy has expanded and innovated, and our quality of life has continued to improve. The RAA's attack on that system puts these advances at risk.

What is perhaps most disturbing is that the assault on our regulatory system is coming at a time when we have a record number of imports from foreign countries and when our domestic regulatory agencies have neither the staff nor the resources to oversee the flood of imports. We need to be strengthening our regulatory and enforcement structures, not weakening them. This cynical effort to use the anxiety the public is feeling about the economy could wreak deep and lasting damage to our regulatory system. The American public needs to weigh in against this dangerous legislation, and the media needs to help them understand what is at stake.

Editor's Note: This piece was cross-posted on The Huffington Post.

(Katherine McFate 11/17/11; 1 comment)

Coal Ash Spill in Lake Michigan Heats Up the Debate over Public Protections

 

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; 0 comments)