Debunked SBA Regulatory Costs Study Front and Center at House Energy & Commerce Committee Hearing
The House Energy & Commerce sub-committee on Environment and the Economy held a hearing yesterday on “regulatory chaos” (yikes!). One figure seemed popular: $1.75 trillion. That’s how much regulations cost the U.S. economy each year, sub-committee vice-chair Tim Murphy said in his opening statement. Two of the four witnesses made the same claim in their testimony (William Kovacs of the Chamber of Commerce and Karen Harned of the National Federation of Independent Business). The committee’s briefing memo on the hearing featured, you guessed it, the same number.
The number, of course, comes from a September 2010 study sponsored by the Small Business Administration’s Office of Advocacy. In February, a CPR white paper showed that the SBA study was severely flawed. Most notably, more than 70 percent of the total cost estimated had been based on public opinion polling about the perceived regulatory climate in different countries, numbers that the original researchers had never meant to be used for a guess about the total effect on the U.S. economy. In April, the nonpartisan Congressional Research Service published a report on the SBA study, including similar and additional critiques.
Even more impressive is that neither the …
The nation’s capital is all but intolerable these days, even for those of us who have lived here for decades and are used to excessive histrionics and gross summer weather. A pall of bad, hot, wet air has settled over the place, and serves as a backdrop to the slow-motion car wreck that is the debt ceiling negotiations—in every sense a crisis of political creation. In the midst of this misery, a small spark of comic relief was provided yesterday by the spectacle of hundreds of top-level business executives, led by the Business Roundtable and the Chamber of Commerce, pleading with their Tea Party allies not to run the economy into a ditch by provoking a default on the country’s financial obligations to institutions and governments across the globe. Having hitched its political wagon to a team of wild horses, big business has gone …
On Monday, the White House announced that President Obama had signed a new executive order on federal regulation to supplement January’s executive order to executive branch regulatory agencies. The new executive order is aimed at the “independent agencies,” so named because the heads of those agencies do not serve at the pleasure of the president. By statute, they serve for a term of years and can be removed from office only “for cause,” which usually means misbehavior unrelated to the exercise of the agency’s policymaking functions.
The new executive order urges the independent agencies to use cost-benefit analysis in promulgating new regulations, to adopt “flexible” approaches to regulation, and to engage in retrospective analyses of existing regulations with an eye toward modifying or withdrawing regulations that are “outmoded, ineffective, insufficient, or excessively burdensome.”
As Professor Rena Steinzor argued in this blog in January, the original …
Last week, the Office of Information and Regulatory Affairs (OIRA) of the Office of Management and Budget released the semiannual regulatory agenda. I pointed out that the agenda, which contains the regulatory agencies’ planned actions, was quite late. Although the plans share problems from past years, like simply pushing back the target dates for regulatory actions, there are some pleasant surprises. For example, the National Highway Traffic Safety Administration (NHTSA) is moving forward with some proactive regulatory responses to the Toyota recalls of 2009, and the EPA plans to propose or finalize updates to National Emissions Standards for Hazardous Air Pollutants (NESHAPs) for 30 sources. Here’s an overview of some highlights (not covering everything) from the regulatory plans. More information about each individual rulemaking can be found by following the links.
Occupational Safety and Health Administration
- OSHA has eight occupational standards working through the arduous pre-rule …
The Administration has been busy promoting President Obama’s new approach to regulatory review, which required federal regulatory agencies to produce plans for how they would review existing regulations and look for regulations to cut. But while the mad dash to find regulations the administration can trot out as misguided or outdated continued, the agencies were delayed in releasing plans about what they want to do proactively to protect workers, children, and the environment.
As our friend Celeste Monforton over at The Pump Handle pointed out a couple of weeks ago, advocates have been waiting on these plans for quite some time. The Regulatory Flexibility Act requires agencies to submit the agendas each April and October. Monforton said OMB told her to expect the plans in early July. And so the new agenda was published today.
The agencies’ regulatory plans give advocates, business, and everyone else a …
Upon reading the White House Office of Information and Regulatory Affairs’ (OIRA) latest annual Report to Congress on the Benefits and Costs of Federal Regulations, one can be forgiven for wondering momentarily whether the 2008 election was just a dream and whether we’re still in the midst of a Republican administration. OIRA is telling us that the primary goal of government regulation—particularly environmental, health, and safety regulation—is not to protect the environment or public health, but to “promote the goals of economic growth, innovation, competitiveness, and job creation,” and in so doing “to avoid excessive regulation, to eliminate unnecessary burdens, and to choose appropriate responses.” Is it just me, or does this sound like a line taken directly from the Chamber of Commerce’s script?
Granted, the annual report, released on Friday, is something OIRA is required to do by statute. But it could …
Cross-posted from ACSblog.
A series of catastrophic regulatory failures in recent years has focused attention on the weakened condition of regulatory agencies assigned to protect public health, worker and consumer safety, and the environment. The failures are the product of a destructive convergence of funding shortfalls, political attacks, and outmoded legal authority, setting the stage for ineffective enforcement and unsupervised industry self-regulation. From the Deepwater Horizon spill in the Gulf of Mexico that killed eleven and caused grave environmental and economic damage, to the worst mining disaster in 40 years at the Big Branch mine in West Virginia with a death toll of 29, the signs of regulatory dysfunction abound. Peanut paste tainted by salmonella, lead-paint-coated toys, sulfur-infused Chinese dry wall, oil refinery explosions, degraded pipes at U.S. nuclear power plants: At the bottom of each well-publicized event is an agency unable to do its job …
On Wednesday, former senator Evan Bayh joined former George W. Bush Chief of Staff Andy Card at the Chamber of Commerce to formally announce their plans to tour around the country campaigning against regulations. The pair have already jumped into a series of falsehoods, endorsing, for example, the discredited SBA-sponsored study claiming regulations cost $1.75 Trillion in a year.
Over at ThinkProgress, CPR Member Scholar Sidney Shapiro takes a closer look at the pair's claims:
Bayh and Card see regulators as having “unprecedented power” and call for “restoring balance and accountability in the process.” I don’t know what regulatory system they are viewing, but it bears no resemblance to the one operating currently in the United States. Far from having “unprecedented power,” agencies find it difficult to complete any type of controversial regulation in less than six to ten years because they must negotiate …
Fact: It often takes agencies up to 10 years (in some cases even longer) to develop and issue critical regulations needed to protect people and the environment. These delays may save corporations money, but they impose real and preventable costs in terms of lives lost, money wasted, and ecosystems destroyed.
The reasons for this delay are not hard to divine. Before it can issue a rule, agencies must run a highly complex gauntlet of analyses and reviews that have piled up thanks to several decades’ worth of misguided regulatory legislation, executive orders, and OMB memos, letters, and circulars. The result is a mishmash of unnecessary or duplicative analyses and reviews that do little to improve the quality of agency decision-making.
For their part, agencies are hardly in the position to play these games. Over the last few decades, agencies have become overstretched as their budgets and staff …
As part of its ongoing campaign to derail health, safety, and environmental regulations that it regards as inconvenient to industry, the Chamber of Commerce sent a letter earlier this month to Cass Sunstein, Administrator of the White Hosue Office of Information and Regulatory Affairs, calling on him to push the EPA to suspend an initiative to list BPA and several other substances as "Chemicals of Concern." Today three Member Scholars of the Center for Progressive Reform sent a letter to Sunstein, arguing that the Chamber had misread the law and calling on Sunstein to allow EPA to publish the proposed rule so that the public can comment on it.
EPA is considering listing BPA and four other chemicals using its authority under § 5(b)(4) of the Toxic Substances Control Act (TSCA). Each of the chemicals (or classes of chemicals)—BPA, Hexabromocyclododecane (HBCD), Nonylphenol (NP) and Nonylphenol …
