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March 25, 2015 by James Goodwin

Today at the U.S. Supreme Court: Industry Tries to Shove a Cost-Shaped Peg Into a Benefit-Shaped Hole

When it comes to public safeguards, industry never wants to talk about keeping people healthy and protecting the environment; they’d much rather have a conversation about how safeguards will cut into their profits — the costs in the cost-benefit equation.  Even on matters where Congress, by statute, has made the discussion of regulatory costs legally irrelevant or a matter of only secondary importance, you can rest assured that industry will still be there talking exclusively about costs.  That is largely what is at issue in Michigan v. Environmental Protection Agencywhich is being argued today before the U.S. Supreme Court—another attempt by polluting industries to inject discussions of costs where they don’t belong.

But, for the EPA’s rule to limit mercury and other toxic pollutants from fossil-fueled power plants, the subject of the case, perhaps the most critical issue is the regulatory benefits at stake, and how the fulfillment of those benefits has been on a circuitous journey that is now extending into its 25th year. You read that right. It has been a quarter of a century since Congress first directed the EPA to issue this rule.  That’s when it passed the 1990 …

March 25, 2015 by James Goodwin
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In the run-up to this morning’s oral arguments before the Supreme Court on the Environmental Protection Agency’s rule to limit hazardous air pollutants from fossil-fueled power plants—and indeed throughout the oral arguments themselves—opponents repeatedly pointed out that the benefits of the rule in reducing mercury pollution were “only” between $4 million and $6 million.  Putting aside the ethically problematic question of trying to put a dollars-and-cents value on achieving improved public health and environmental protection, it is worth pondering this number and what it reveals about the significant methodological flaws that are endemic to cost-benefit analysis.  (For the record, this number is supposed to represent the “value” of lost earning potential of children that the rule would protect against IQ point degradations.  Do you see what I mean about ethically problematic?)

Opponents of the rule claim that this $4-million figure is the only …

March 25, 2015 by Erin Kesler
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Today, the Supreme Court heard oral argument in Michigan v. EPA

CPR Member Scholar and University of Texas School of Law professor Thomas O. McGarity responded to the debate with the following statement:

Following today’s oral arguments, the Supreme Court must decide whether EPA misinterpreted a section in the Clean Air Act requiring it to regulate hazardous emissions from power plants when such regulation is “appropriate and necessary.”  EPA interpreted those words to require the agency to focus on the harm that emissions of hazardous pollutants, like Mercury, can cause to human health and the environment, and not on how much it would cost industry to reduce those emissions.

EPA’s interpretation is fully consistent with the Clean Air Act’s precautionary approach to protecting public health and the environment from toxic emissions. 

History has proved time and again that if EPA must consider costs in …

March 24, 2015 by Erin Kesler
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In the United States, a handful of large corporations including Perdue and Tyson direct and oversee nearly every step in the poultry production process, essentially serving as overlords to the tens of thousands of small farmers with whom they contract to raise their chickens for slaughter. While deriving the lion’s share of the profit, these corporations have so far managed to avoid all responsibility for the pollution their chickens produce. The Environmental Protection Agency (EPA) and state agencies have been largely afraid to tackle the issue because of the well-heeled and politically powerful farm lobby. A new CPR Issue Alert urges government to hold these bad actors accountable and explains how to do so under existing law.

These companies, known as “integrators,” own virtually all aspects of poultry production—from hatching the chicks, to processing and retailing them, even transporting poultry products to grocery stores and …

March 23, 2015 by Erin Kesler
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Last Friday marked the 10 year anniversary of the BP Texas City Refinery explosion that killed 15 people and injured 170 others.

In an opinion piece for the Houston Chronicle, CPR President Rena Steinzor describes the systemic failures which led to the explosion and the regulatory gaps that remain. She calls for criminal investigations, "everytime refinery operations kill, maim, or threaten public health."

She notes:

BP executive Ross Pillari blamed low-level workers for not "doing their jobs." Yet some of the men stationed at the tower had worked 12-hour shifts for 29 consecutive days, as required by BP policy. The company fired six of them, in effect reinforcing the perception that human error, as opposed to systemic mismanagement, was to blame. This spin was refuted by the evidence.

Several weeks before the explosion, Texas City plant manager Don Parus prepared a PowerPoint containing pictures of men killed …

March 20, 2015 by Matt Shudtz
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Last week, workers’ advocates at the Southern Poverty Law Center and Nebraska Appleseed got the official word that OSHA will not develop new regulations to protect the men and women who do the dirty work of turning clucking chickens into boneless cutlets. It’s an industry where vulnerable workers—mostly women, immigrants, and folks geographically isolated from other job opportunities—face great hazards from the strains of repetitive motion. Some of the plants process tens of thousands of birds on every shift, and a recent NIOSH review of one facility uncovered evidence of chronic musculoskeletal injuries in more than 40 percent of the workers who took part in the evaluation. The industry has a problem.

Lobbyists from the Chicken Council will proudly proclaim that the industry’s injury and illness rates have been dropping for years. But those numbers simply cannot be trusted. The chronic pain that …

March 18, 2015 by Erin Kesler
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Today, CPR Senior Policy Analyst James Goodwin will testify as an expert witness on the regulatory process for a House Committee on Small Business Hearing, "Tangled in Red Tape: New Challenges for Small Manufacturers.

Goodwin's testimony highlights the economic as well as public health and safety benefits of regulations in relation to small businesses. He notes:

Over the past four decades, U.S. regulatory agencies have achieved remarkable success in establishing safeguards that protect people and the environment against unreasonable risks. During the 1960s and 1970s, rivers caught fire, cars exploded on rear impact, workers breathing benzene contracted liver cancer, and chemical haze settled over the industrial zones of the nation's cities and towns. But today, the most visible manifestations of these threats are under control, millions of people have been protected from death and debilitating injury, and environmental degradation has been slowed and even …

March 16, 2015 by Matt Shudtz
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What’s old is new again. This week, competing bills to reform the 40-year old Toxic Substances Control Act (TSCA) hit the Senate—one from Senators Vitter and Udall, the other from Senators Boxer and Markey. Both the environmental community and the chemical industry agree that TSCA is broken and must be fixed. This is a law that’s so poorly designed; EPA has been stymied in its efforts to ban asbestos. Yes, that asbestos. But where environmentalists and the chemical industry diverge is on the details of how to fix TSCA.

CPR Member Scholars and staff are still analyzing the bills, but one issue stands out as a fatal flaw in the Vitter-Udall proposal, and is addressed wisely in the Boxer-Markey proposal: the proposed safety standard. The “safety standard” is the focal point of the legislation: EPA’s central task under both proposals is to determine …

March 9, 2015 by Daniel Farber
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There are troubling indications that Keith Hall lets ideology blind him to basic economics.

Last week, in a post about the employment effect of regulations, I mentioned briefly that the new Director of the Congressional Budget Office, Keith Hall, had endorsed some questionable views on the subject.  A reader pointed me toward an additional writing that has done a lot to escalate my concerns.  There are disturbing signs about both Hall’s ideological bias and even his grasp of basic economics.

This writing was part of an exchange in the journal Risk Analysis about an excellent book on the regulation/employment issue written by Coglianese, Finkel, and Carrigan.  Here are a couple of snippets that reflect Hall’s anti-regulatory bias:

“Regulation-related jobs are created much in the same way that a hurricane creates jobs.”

“The important point is that more valuable economic resources—like labor hours in …

March 9, 2015 by Celeste Monforton
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This blog is cross-posted from the Pump Handle. 

It’s a rare thing on Capitol Hill when a member of the Administration is on the hot seat from both sides of the aisle. But that’s what happened on Tuesday when President Obama’s regulatory czar, Howard Shelanski, JD, PhD, testified at a joint hearing of two subcommittees of the House Committee on Oversight & Government Reform.

The Republican Chairman Mark Meadows (R-NC) and Ranking Member Gerry Connolly (D-VA)and other subcommittee members, peppered him with questions about OIRA’s lack of transparency in numerous arenas. Their motivations were different, but they were equally tough in their questioning. Republicans don’t think OIRA is doing enough to reign in regulatory agencies, while Democrats want OIRA to complement, not impede, agencies’ work.

I could relate to Chairman Meadows when he pressed Shelanski about releasing documents related to OIRA …

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