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June 12, 2009 by Rena Steinzor

Big Trouble on Climate Change: President Obama and the Loss of Momentum

This past Sunday’s New York Times Magazine had a terrific piece by Matt Bai on the Obama White House and how it is “taking” Capitol Hill, one battle at a time. After extolling the team of congressional insiders Obama has assembled, and emphasizing the importance of their attentiveness to key players on the issue du jour -- health care reform -- Bai predicts that Obama will be compelled to wade up to his neck in the messy details of the legislation because only his personal power will be enough to guide this behemoth through. This prediction, which has already begun to come true -- note the stories last week saying he’d be willing to consider taxing benefits -- could spell disaster for a different issue: climate change legislation.

Allow me to pause for just a moment, in fairness to the Obama team, to lament congressional gridlock, which has yet to be resolved by the Democratic leadership, especially in the Senate. Because Majority Leader Harry Reid (D-NV) is unwilling to play even the mildest hardball with his recalcitrant Republican opposition on even the smallest issue (see, e.g., closing Guantanamo), the “wisdom” has taken hold there that everything declared controversial by the minority …

May 13, 2009 by Rena Steinzor
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With his attractive family and a phalanx of top aides in tow, Professor Cass Sunstein had a cordial, 45-minute hearing before the Senate Homeland Security and Government Affairs Committee yesterday. He was introduced by former student and current Senator Amy Klobuchar (D-MN) who praised Sunstein as a teacher, mentor, and eclectic thinker, all qualities for which he is rightly known. Ironically, however, the remainder of the hearing could be summarized as efforts by the three Senators in attendance— Chairman Joseph Lieberman (I-CT), ranking minority member Susan Collins (R-ME), and Senator Daniel Akaka (D-HI)—to get Sunstein to pledge that eclectic thinking will not be his modus operandi at the White House.

The Sunstein story has taken on a life of its own, significantly out of proportion to the interest this level of position typically sparks, especially given the urgency of headlines on the global economic crises, swine …

May 13, 2009 by Rena Steinzor
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Cass Sunstein had his confirmation hearing Tuesday; it was well-attended and anti-climactic. President Obama’s nominee to head the Office of Management and Budget’s (OMB) Office of Information and Regulatory Affairs (OIRA) testified for about an hour, and Senate approval of the nomination seems assured.

Ironically, in a perfect example of timing being everything, at about the same hour that Sunstein took his seat in front of the Senate Committee on Homeland Security and Government Affairs, a story hit the media fan in Washington showing that for the past several months, it has been business-as-usual between OMB and EPA with respect to climate change, with the economists of the first subjecting the scientists of the second to a gauntlet of skeptical questions about whether responding to this urgent problem will cost too much. Had the story broken 24 hours earlier, Sunstein would have had his hands …

May 6, 2009 by Rena Steinzor
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Cass Sunstein, President Obama's controversial nominee for Administrator of the Office of Information and Regulatory Affairs (OIRA), will go before the Senate's Homeland Security and Governmental Affairs Committee for his confirmation hearing on Tuesday (May 12). The “Regulatory Czar,” as this position is known, wields enormous influence over the substance of federal regulations affecting matters as diverse as public health and safety, the environment, and education.

Professor Sunstein's nomination has attracted attention from the public interest community, largely focused on the many controversial stances on regulatory policy that he has taken in his legal scholarship. Here are some of the things I will be listening for when I go to the hearing on Tuesday:

  • Does Professor Sunstein recognize that the federal regulatory agencies are in a severely weakened state? The federal regulatory agencies that the American people depend upon to protect them from pollution, unsafe products, workplace …

April 28, 2009 by Rena Steinzor
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Inside the Washington Beltway, we are awash in stories about President Obama’s first 100 days. Some are comparative—how is Obama doing in relationship to Franklin Roosevelt at the same point in his first term? Some are pure spin—“we’re competent and we love each other!" opines Rahm Emanuel, the obviously biased Obama chief of staff. And some are substantive—has he kept his campaign promises and, if not, how many more miles does he have to go before he sleeps?

On the issues in our bailiwick, the President gets an “A” for effort, a “B” for execution, and an “incomplete” for the course as a whole.

First, the big picture. Just hearing a President talk about environmental protection again as if it were a very important item on the national agenda is enormously exciting, especially because the President has targeted climate change, the …

April 20, 2009 by Rena Steinzor
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According to media accounts, President Obama today nominated Harvard law professor Cass Sunstein to be the director of OMB's Office of Information and Regulatory Affairs -- the so-called "regulatory czar."  CPR President Rena Steinzor reacts to the news:

I welcome Cass Sunstein’s nomination to be the Obama Administration’s regulatory czar. His past support for cost-benefit analysis as a method of regulatory impact analysis – even as practiced by the Bush Administration – raises a host of questions about the direction in which he’ll lead the Office of Information and Regulatory Affairs. The core issue: will Sunstein’s OIRA allow cost-benefit to continue to be a stumbling block for much-needed regulatory protections for health, safety and the environment? Will OIRA be a place where needed regulations get watered down and bottled up? Or, as I hope, will Professor Sunstein put his years of study of the issue …

April 14, 2009 by Rena Steinzor
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Say you live in an urban neighborhood where crime is worrisome but not overwhelming. The police are chronically understaffed, with no money to walk the beat, and instead depend on what we might call a “deterrence-based enforcement system” – making high-profile arrests, prosecuting the worst violators, and relying on the resulting publicity to frighten others from taking up a life of crime. Now suppose a group of trade associations representing local “businesses,” that is to say drug dealers and thieves, marches on the police station demanding a gentler approach. Instead of making arrests, the police form a little club that offers conveniently scheduled workshops on how to comply with the law. And any club member that asserts an intention to try to be a better person – yard-long rap sheet notwithstanding – is invited to an award ceremony, and given a plaque for their wall along with a walk on …

March 31, 2009 by Rena Steinzor
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Two years ago, a pair of well-meaning economists, Richard Morgenstern and Winston Harrington, who work at the moderate think tank Resources for the Future (RFF) got a large grant from the Smith Richardson Foundation to convene a group of well-credentialed academics to consider how to improve “cost-benefit analysis” (CBA). Unfortunately, their long-awaited report, released at a briefing today is a mouse that tries to roar, but doesn’t quite. The reforms proposed in the final chapter – and that are never endorsed by the report’s contributing experts – are your grandma’s version of cost-benefit analysis. Rather than presenting bold ideas that might somehow have transformed the cost-benefit methodology into something that, if adopted, would not hamper – and eventually embarrass – the Obama Administration, it instead offers up only modest tweaks.

Cost-benefit analysis, or “CBA,” is a controversial method of regulatory analysis invented by economists, and it relies on …

March 27, 2009 by Rena Steinzor
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Dangerous consumer products just can't seem to stay out of the news lately. The newest revelations are on drywall imported from China. Time reports the horrifying story of a 67-year-old dance teacher named Danie Beck whose two-story townhouse was lined with Chinese drywall. Beck smelled horrific odors shortly after moving in, and then began experiencing dizzy spells, insomnia, and sore joints. Eventually, she discovered the source of her misery: the drywall had somehow ended up with high levels of sulfur in the gypsum used to make it. The levels were so high that she and her homebuilder believe they corroded the coils on Beck’s air conditioning system, short circuited her electric wiring, and discolored her wood furniture. Can you imagine?

The Time story says that before 2005, very little of the drywall used in U.S. construction came from China. But escalating demand during the …

March 20, 2009 by Rena Steinzor
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The financial cataclysm gripping the country is often (and rightly) blamed on a lax system of public and private oversight of financial institutions. On the private side, investors trusted huge auditing companies like Arthur Anderson to rate multinational corporations for fiscal soundness. Meanwhile, Arthur Anderson also took handsome fees from the same corporations to conduct those audits.  Such self-dealing makes no sense to most Americans.  No one lets us administer our own driving tests, much less check our own tax returns.

On the public side of the equation, we must consider the behavior of the government’s watchdog, the Securities and Exchange Commission (SEC), which was missing in action for much of the last decade.  Investors are so furious about this turn of events that some of Bernie Madoff’s victims have even filed suit against the SEC asking for money because the government ignored warnings from …

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