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June 9, 2009 by Daniel Farber

The Misleading Economic Criticism of Waxman-Markey

The first line of defense against climate regulation was that climate change didn’t exist. The next line of defense was that maybe it was real, but it wasn’t caused by humans. Now we’re up to the third line of defense: it does exist and it is caused by humans, but it’s too expensive to fix. For example, the Heritage Foundation estimates that Waxman-Markey would cost society a whopping seven trillion dollars by 2035.

These estimates fail to ask a critical question: Compared to what?

To begin with, the alternative to Waxman-Markey or other new legislation isn’t a regulation-free world. Instead, it’s a world in which a number of states like California are aggressively regulating greenhouse gas emissions – and more importantly, a world where the EPA is required by law to regulate greenhouse emissions under the Clean Air Act. There’s no reason at all to think that Waxman-Markey would be a less efficient tool than the Clean Air Act. Indeed, there’s every reason to think otherwise: the Clean Air Act is at best an awkward tool for regulating climate change and isn’t likely to coincide with the most efficient approaches. Do critics …

June 8, 2009 by James Goodwin
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When President Obama launched his open government initiative on his first full day on the job, few assumed that the ambitious endeavor it contemplated would be easy.  After all, lack of transparency and even active efforts to conceal information had become almost an inextricable feature of the federal government’s internal operations and decision-making—especially during the George W. Bush Administration.  A recent series of developments confirms just how challenging the effort to achieve a more open government will be; fortunately, some of these developments also suggest that the Administration has learned some lessons from the initiatives’ early difficulties and perhaps is now moving in the right direction.

Obama launched the good ship “open government,” via a memorandum issued on January 21, laying out a vision of open government that was predicated on three pillars:  transparency; public participation; and collaboration.  The memo directed the Chief Technology Officer …

June 4, 2009 by James Goodwin
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In 2007, the FDA came under criticism for failing to inform the public about studies it had had for two years which indicated that users of the diabetes drug Avandia faced up to a 42% greater chance of suffering a heart attack.  More recently, it was revealed that Bush-era political appointees at the agency surreptitiously worked with chemical industry representatives to downplay evidence of the adverse health effects caused by bisphenol A (BPA), a chemical frequently used in making plastic toys and baby bottles.  Thanks to scandals like these, the FDA has long been dogged by criticisms for the lack of transparency with which it conducts regulation.

The Obama Administration says it will be taking on the issue.  The FDA announced Tuesday that it would be beginning a process to enhance “the transparency of the agency’s operations and decision-making process.”

To carry out this new initiative …

June 4, 2009 by Ben Somberg
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On Tuesday, Representatives Henry Waxman and Bart Stupak sent a letter to FDA Commissioner Margaret Hamburg asking the agency to re-examine its assessment that bisphenol A (BPA) does not pose health risks to consumers. The FDA responded that it was already planning on doing so, and that a new decision would be released within "weeks, not months" (AP, Milwaukee Journal-Sentinel).

May 28, 2009 by Holly Doremus
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Cross-posted by permission from Legal Planet.

According to Science Insider (subscription required), NOAA Administrator Jane Lubchenco has endorsed broader use of a “catch shares” approach to allocating the available catch in commercial fisheries. The shares strategy (also referred to as “individual transferable quotas” or “limited access privileges”) gives individual participants in the fishery a permanent and transferable right to a set proportion of the total allowable catch.

In theory, assigning shares should contribute in several ways to a more sustainable fishery. By limiting entry, a shares strategy should help address the chronic problem of over-capitalization — too many boats chasing too few fish — which tends to ratchet up pressure for high catch levels. By giving the fishers a long-term stake in the health of the fishery, it should give them incentives to support sustainable (reduced) catch levels. In some fisheries, shares can also make fishing safer by removing …

May 26, 2009 by Catherine O'Neill
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Here's some slippery regulatory logic: West Virginia's Department of Environmental Protection says it is justified in setting less stringent levels for mercury in the state's waters than recommended by the U.S. Environmental Protection Agency. Why? Because, according to the WVDEP, a recent study shows that people in West Virginia eat less fish than the "average American" assumed by EPA. And if people consume less fish, they will be exposed to lower quantities of the toxic pollutants in those fish -- including methylmercury. But why might people in West Virginia eat less fish? One reason is likely the statewide fish consumption advisory warning people to limit their consumption of fish caught in all West Virginia waters, due to mercury contamination. But isn't the amount of mercury contamination permitted in the state's waters limited by the WVDEP? Well, yes. But any limitations on sources …

May 22, 2009 by Matt Shudtz
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The Milwaukee Journal-Sentinel continued its impressive BPA reporting Sunday with disturbing revelations about former FDA political appointees’ utter disregard for the agency’s career scientists. Using the Freedom of Information Act, the Journal-Sentinel uncovered e-mails showing that high-level officials went to industry lobbyists for advice about new research on bisphenol A (BPA) before asking FDA career staff.

In one instance, the U.S. Food and Drug Administration's deputy director sought information from the BPA industry's chief lobbyist to discredit a Japanese study that found it caused miscarriages in workers who were exposed to it. This was before government scientists even had a chance to review the study.

"I'd like to get information together that our chemists could look at to determine if there are problems with that data in advance of possibly reviewing the study," Mitchell Cheeseman, deputy director of the FDA's center …

May 20, 2009 by Holly Doremus
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This item is cross-posted by permission from Legal Planet.

In March, I wrote here about EPA’s newfound boldness on mountaintop removal mining. Under current regulations, the Corps of Engineers issues permits for that practice under Clean Water Act section 404, but EPA has the authority to veto those permits. EPA, which was entirely passive on the matter under the Bush administration, had sent objections to the Corps on a couple of permits, and announced that “it would take a close loook” at others.

It is now clear that a close look doesn’t mean blanket opposition. Nick Rahall, Chair of the House Natural Resources Committee, has released a letter from EPA indicating that, of 48 permit applications the agency has reviewed, it has approved 42 and objected to only 6. Coal Tattoo (the Charleston Gazette’s blog on all things coal mining) has the story here …

May 19, 2009 by Victor Flatt
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On Friday, the House Energy and Commerce Committee released its anticipated Beta version of its comprehensive GHG and energy bill. Among other goals, the new discussion draft attempts to address concerns from moderate and conservative Democrats concerning the proposed cap and trade system and how it would work. The most notable change involves the free allocation of allowances to certain economic sectors to assist in the transition to the new system, and this is the part that seems to most directly respond to actual political pressures regarding the cost of controlling greenhouse gases.

With respect to offsets, the most problematic change is allowing the offsets, which are more uncertain than emission reductions, to be treated as equal in value to emissions allowances. The original Waxman-Markey discussion draft discounted all offsets by 20% with respect to equivalent greenhouse gas allowances, so that it took 1.25 offsets to …

May 18, 2009 by Matt Shudtz
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On May 9, at the conclusion of the Fourth Conference of the Parties (COP-4) to the Stockholm Convention, negotiators from around the world agreed to add nine chemicals to the list of persistent organic pollutants (POPs) that are too dangerous for international trade. It was an important step toward protecting the world community from toxic exposures, but it unfortunately highlights our country's inability to take a leading role in international environmental law.

How it works

In 2001, representatives of nations from across the globe met in Stockholm to negotiate a treaty that would eliminate the production, distribution, and use of the most dangerous chemicals in the world marketplace. They originally agreed to phase out DDT, PCBs, and ten other substances known as the “dirty dozen” because of their high toxicity, ability travel great distances in air or water, and tendency to bioaccumulate in the food chain …

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