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March 16, 2015 by Matt Shudtz

CPR Scholars Call on Senators to Enact Meaningful Reform of the Toxic Substances Control Act

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 whether chemicals meet the standard. If a chemical meets the standard, then restrictions on manufacture, processing, and use will be limited. If it doesn’t, then EPA must consider tight controls, even banning the chemical. But the safety standard in this legislation is very problematic.

With colleagues from the environmental community, one dozen …

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 …

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 4, 2015 by James Goodwin
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Yesterday, the House Oversight Committee held a hearing on “Challenges Facing OIRA in Ensuring Transparency and Effective Rulemaking” that featured as its only witness the head of the White House’s Office of Information and Regulatory Affairs (OIRA), Administrator Howard Shelanski.   Given that regulations are a huge source of consternation on the Hill, and the prominent role that OIRA plays in the federal regulatory apparatus, oversight hearings involving OIRA always have the potential for fireworks.  Despite this potential, these hearings—which take place once a year or so—tend to be pretty staid affairs with some mild grousing over a few key issues that are undoubtedly worthy of congressional attention—including the delays caused by OIRA’s unacceptably long rule reviews and OIRA’s semiannual tradition of issuing regulatory agendas behind schedule and/or at inconvenient times of the year (i.e., before major holidays).   Yesterday’s …

March 3, 2015 by Erin Kesler
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The Texas Public Utility Commission, which sets electricity rates for the state and allows adjustments for fuel costs, has recently proposed amendments to its procedural rules that would limit consumer advocate input into potentially abusive rate changes.

Prior to any rate changes, the Commission holds public hearings where experts for the utility companies present highly technical reports drawn from their own data. Representatives of consumer groups can participate in these hearings, but they typically advance consumer interests by challenging the data and assumptions presented by the industry's experts.

The Commission has proposed to limit the amount of demands for information that consumer advocates can make of utility companies and the number of written question they can submit at public hearings. 

In an op-ed for yesterday's Austin-American Statesman, CPR Scholar and University of Texas School of Law professor Tom McGarity lays out the potential problems for …

March 2, 2015 by Daniel Farber
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The Republicans’ choice for head of the CBO, Keith Hall, spent some time at a libertarian think tank reportedly funded by the Koch brothers, where he wrote about the effect of regulation on employment. Hall argued that regulations cause unemployment (include indirect effects because of price changes), and that the costs of unemployment should be included in regulatory cost-benefit analysis.

In principle, it seems right to include the special harms associated with job loss in cost-benefit analysis (not just for regulations but everything else too).  There’s all kinds of evidence that being fired or laid off is very damaging to people, and that’s a genuine cost — assuming that we can reliably quantify the effect.  As Hall has said:

“The immediate impact of job loss includes lost wages, job search costs, and retraining costs. Further, research shows that even after reemployment it can take as long …

March 1, 2015 by Matthew Freeman
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Last December, the Justice Department announced the indictiment of the owner/head pharmacist, the supervising pharmacist, and 12 others associated with the New England Compounding Compounding Center. The 131-count indictment, which included 25 charges of second-degree murder, grew out of a 2012 outbreak of fungal meningitis caused by contaminated drugs manufactured by the company. More than 750 patients were diagnosed with the illness as a result, and 64 patients in nine states died from it. 

In a February 28, 2015, op-ed in USA Today, CPR President Rena Steinzor, author of Why Not Jail? Industrial Catastrophes, Corporate Malfeasance, and Government Inaction, recounts the story and then takes a look at how policymakers reacted, and what came of their response. The tragedy laid bare a gaping hole in the nation's regulatory fabric, and rather than addressing it with straightforward legislation and resources to enforce it, Congress pass a …

CPR HOMEPAGE
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