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July 19, 2013 by Daniel Farber

The Strange World of the Small Business Administration

When you say “small business,” most people probably imagine a mom-and-pop corner grocery.  Actually, the federal Small Business Administration’s concept of small goes well beyond that.  For instance, it includes a computer business that does up to $25 million per year in business. A convenience store can do $27 million and still be considered “small,” while a grocery store can go up to $30 million. If you’re in parts of the financial sector, you can do $175 million in business a year and still be a “small business.”

In many other areas, the size requirement is set in terms of numbers of employees—usually 500, but sometimes 1000 or more.  There are wonderfully detailed sub-categories such as “Motor Vehicle Steering and Suspension Components (except Spring) Manufacturing” and the nostalgia-inducing “Carbon Paper and Inked Ribbon Manufacturing.”  (Couldn’t find a heading for buggy-whip manufacturers, however.)  Anyway, each and every one of these businesses is, for some mysterious reason, entitled to the special care and solicitude of the U.S. government.

But the Small Business Administration seems remarkably attentive even to firms that exceed even this generous definition of small business. The Office of Advocacy also is willing to go …

July 18, 2013 by Robert Verchick
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The Senate's confirmation of Gina McCarthy as head of the Environmental Protection Agency is a welcome development and a signal that Congress and the President are willing to get serious about the Agency's role in protecting the health of all Americans and the affects of climate change on the environment. It won't be easy. Lawmakers seem divided on nearly every issue in this debate. In the past EPA's efforts to protect the environment and public health and safety have sometimes been delayed by the White House's own Office of Information and Regulatory Affairs (OIRA). Cutting through such bureaucracy should be on the short list of the new administrator's priorities. Climate change knows no political ideology and it follows its own timeline. Administrator McCarthy is well equipped to meet the challenges we face. We are lucky to have her fighting for us …

July 17, 2013 by Frank Ackerman
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One day in May, climate change got a lot more expensive. The price tag on emissions – the value of the damages done by one more ton of CO2 in the air – used to be a mere $25 or so, in today’s dollars, according to an anonymous government task force that met in secret in 2009-2010. Now it’s $40, according to an anonymous government task force that met in secret in early 2013.

Anyone who cares about combating climate change would have to applaud the result: a higher carbon price means that cost-benefit analyses will place a greater value on policies that reduce emissions.

And anyone who cares about democracy should be appalled at the process: are we entering an era in which major regulatory decisions are made anonymously, in secret, with no opportunity for review?

The work of the anonymous task force is a …

July 17, 2013 by Bill Funk
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Environmentalists know about the Environmental Protection Agency’s Water Transfer Rule. See 40 CFR § 122.3(i). It states in essence that discharging polluted water from one body of water to another unpolluted body of water is not a discharge of a pollutant under the Clean Water Act. According to the EPA, this action would not be regulated by the Act, because no pollutant is being “added” to the “waters of the United States.” There may be an addition of a pollutant to a particular body of water, but that is not enough, the EPA says. There must be an addition to the “waters of the United States” as a whole. This is also known as the “unitary waters” approach.   

This issue has arisen in a number of different cases, perhaps most notably in South Fla. Water Mgmt. Dist. v. Miccosukee Tribe of Indians, 541 U.S …

July 16, 2013 by Dave Owen
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Last week brought big news in the water quality world.  On July 10, American Rivers, the Conservation Law Foundation, the Natural Resources Defense Council, and several other environmental groups filed “residual designation authority” petitions for stormwater discharges across EPA Regions 1 (New England), 3 (mid-Atlantic), and 9 (southwestern states and California).  That may sound like an obscure and technical act, but here’s why it’s actually a very big deal.

For years, urban stormwater runoff has been one of the United States’ greatest unsolved water quality challenges.  Urban runoff is second only to agricultural runoff as a source of water quality impairment, and on a per-acre basis, urban development is generally more damaging to water quality than agricultural use.  But EPA has struggled to regulate urban stormwater runoff.  For years, EPA barely regulated urban stormwater runoff at all.  The 1987 Clean Water Act amendments compelled EPA …

July 10, 2013 by Erin Kesler
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This morning, the House Energy and Commerce Subcommittee is expected to advance the "Energy Consumer Relief Act" for consideration. The Act would allow the head of the Department of Energy to veto any rules promulgated by the EPA with estimated "costs" of over $1 billion. 

Center for Progressive Reform President Rena Steinzor testified against the bill in April at a Legislative Hearing. 

Below is Steinzor's reaction to the Committee's movement of the Act: 

The deceptively named, "Energy Consumer Relief Act" would effectively subsidize billion-dollar energy companies for their contamination of the environment at the expense of consumers suffering with pollution-related diseases like heart disease and asthma. The EPA has repeatedly been hamstrung by a regulatory process focused on cost-benefit analysis that estimates the lives of Americans in dollars and cents. This Act would effectively kneecap the Agency's remaining ability to protect citizens against damaging …

July 9, 2013 by James Goodwin
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  “April showers bring May flowers.” To that well-known spring-related proverb one might soon add “the Spring Regulatory Agenda brings new groundless complaints from corporate interests and their anti-regulatory allies in Congress about so-called regulatory overreach.” Last Wednesday, the Obama Administration issued the 2013 edition of the Spring Regulatory Agenda, one of two documents the President must issue every year (the other is published in the fall) that compiles and summarizes the various regulatory actions that the Administration expects to take in the near future. Over the past few years, regulatory opponents have grown fond of pointing to the Spring and Fall Regulatory Agendas as still further evidence of the so-called “regulatory tsunami” that is allegedly hindering the economy and to support their campaign to “reform” our regulatory system.  I expect that these same groups will waste little time in the coming days to misrepresent the latest regulatory …

July 3, 2013 by James Goodwin
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Welcome aboard, Administrator Shelanski.  You’re already well into your first week on the job as the head of the White House Office of Information and Regulatory Affairs (OIRA).    You’ve already received plenty of valuable advice—during your confirmation hearing and from the pages of this blog, among other places—on how you can transform OIRA’s role in the regulatory system so that it’s not a continued impediment to effective government.  For example, many have urged you to end the pattern of long-overdue reviews at OIRA (at last count, 72 of the 137 rules undergoing review are past the 90-day limit provided for in Executive Order 12866), to improve transparency of OIRA’s reviews so that decision-makers can be held publicly accountable for changes they make to pending safeguards, and to restrict the use of cost-benefit analysis as a means for justifying the dilution …

July 2, 2013 by Thomas McGarity
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Lost among the high-profile opinions that the Supreme Court issued during the past two weeks was a case that attracted little media attention, but is of great importance to the millions of Americans who take generic drugs.

Karen Bartlett, a secretary for an insurance company filed the lawsuit against generic drug manufacturer Mutual Pharmaceutical Company.  When Karen visited her doctor complaining of shoulder pain, he prescribed Clinoril, one of many non-steroidal anti-inflammatory drugs (NSAID) that are commonly used to treat arthritis, bursitis, and other painful conditions.  When Ms. Bartlett’s pharmacist filled the prescription, however, he gave her the generic version of the drug sulindac, rather than the brand-name drug.

Soon after taking the drug, Ms. Bartlett developed a horrific disease called SJS/TEN, which caused massive burns on over 60-65 percent of her body.  For the next year, her life was, in the words of her …

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Senate Hearing to Bring Some Sanity to the Debate Over Federal Regulatory Policy

July 30, 2013

Robert Verchick: Will the White House stall its own climate change plans?

July 26, 2013

Shelanski Said What During the House Small Business Committee?

July 25, 2013

Chemical Safety Board Introduces a Most Wanted List of Reforms to Protect Workers

July 24, 2013

Ash Time Goes By: Administration Continues Foot-Dragging on Coal Ash Rule as Toxic Landfills and Ash Ponds Grow by 94 Million Tons Each Year