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Aug. 17, 2021 by Sidney Shapiro, Melissa Lutrell

The Hill Op-ed: Regulatory Analysis Is Too Important to Be Left to the Economists

The surging COVID-19 delta variant is sending thousands of people to the hospital, killing others, and straining several states' hospital systems to their breaking point. The climate crisis is hurting people, communities and countries as we write this piece, with apocalyptic wildfires, crippling droughts and raging floodwaters. Systemic racism continues unabated, leading to vast economic and environmental injustices. It's beyond time for urgent action, but to get there, the federal government must reform the opaque, biased method it uses to evaluate our nation's public health, economic and environmental protections.

The day President Joe Biden took office, he ordered executive branch agencies to evaluate and reform the regulatory review process to “ensure swift and effective Federal action” to address the urgent problems we currently face. The administration is unlikely to live up to this goal unless the White House addresses the hyper-technical form of cost-benefit analysis that is the centerpiece of this process.

The ongoing national reckoning with racism has prompted widespread scrutiny of many institutions, including the White House's centralized regulatory review process led by the Office of Information and Regulatory Affairs (OIRA). The relentless focus on cost-benefit analysis in regulatory review …

July 21, 2021 by James Goodwin
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The Biden administration's Environmental Protection Agency (EPA) is currently seeking public input on its efforts to revamp an important Clean Air Act program called the Risk Management Plan (RMP) rule for facilities that produce, store, or use large amounts of dangerous chemicals. It is meant to prevent catastrophes — like the 2017 Arkema explosion in Crosby, Texas — which not only put human lives and health in danger (especially for the communities of color that are disproportionately overrepresented in the shadows of these facilities), but also cause costly disruption for local economies.

My CPR colleagues contributed to a timely new policy brief explaining how the EPA must be particularly attentive to the new and unique threats posed by climate change as it goes about revamping its RMP rule to prevent "double disasters" that will become increasingly common unless chemical facilities are forced to take preventative action. They presented the …

June 9, 2021 by James Goodwin
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In addition to cleaning up our environment, the U.S. Environmental Protection Agency (EPA) must also clean up the mess the Trump administration left behind.

The Biden EPA recently took an important step in this direction by finalizing its plan to rescind a Trump-era rule that would drastically overhaul how it analyzes the rules it develops to implement the Clean Air Act. If implemented, Trump's "benefits-busting" rule would have sabotaged the effective and timely implementation of this popular and essential law, which protects the public from dangerous pollution that worsens asthma and causes other diseases. The rescission is slated to take effect next week.

On June 9, the EPA held a public hearing to gather feedback on rescinding the rule, which CPR has been tracking for several years. CPR Member Scholars Rebecca Bratspies and Amy Sinden joined me in testifying in support.

A New and Better Approach …

May 21, 2021 by Daniel Farber
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This post was originally published on Legal Planet. Republished with permission.

In its closing days, the Trump administration issued a rule designed to tilt EPA's cost-benefit analysis of air pollution regulations in favor of industry. Recently, the agency rescinded the rule. The rescission was no surprise, given that the criticisms of the Trump rule by economists as well as environmentalists. EPA's explanation for the rescission was illuminating, however. It sheds some important light on how the agency views the role of cost-benefit analysis in its decisions.

The Trump rule contained an industry wish list of provisions, all of them designed to make regulation more difficult. At the time, the provision that got the most attention related to co-benefits. Co-benefits are the beneficial side effects of a regulation. For example, a regulation designed to reduce mercury emissions from power plants also cut emissions of fine particulates, thereby saving …

March 24, 2021 by James Goodwin
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In a little-noticed move on Day One, President Joe Biden issued a memo designed to institute a more progressive process for developing new regulations. Such an effort is essential, given that timely, effective regulations will play a key role in achieving Biden-Harris administration's policy agenda. To succeed, however, it must also tackle the conservative philosophy that guides our government's rulemaking process.

Biden's memo focuses on the mechanics of the rulemaking process, and especially two institutions that heavily influence regulatory decisions: centralized, White House review of proposed rules and economics-focused assessments of them. President Reagan and his successors have issued a string of executive orders to govern these institutions. Biden's memo addresses flaws in the current iteration, Executive Order 12866 (along with some other, related orders). Fixing these flaws is necessary to create a more progressive regulatory system that better protects people and the planet.

A flawed foundation …

March 23, 2021 by James Goodwin, Sidney Shapiro
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This op-ed originally ran in The Regulatory Review. Reprinted with permission.

To paraphrase French economist Thomas Piketty, the task of evaluating new regulations is too important to leave to just economists. Yet, since the 1980s, White House-supervised regulatory impact analysis has privileged economic efficiency as the primary and often only legitimate objective of federal regulation. The regulatory reform initiative launched by President Joseph R. Biden on his first day in office creates an opportunity to reorient regulatory analysis in ways that both reformers and the public support.

Legal and policy experts object to hyper-technical regulatory analysis, and new public opinion polling indicates that voters agree.

Far from a monolithic concept, cost-benefit analysis encompasses a wide range of approaches and techniques, all with their own theoretical underpinnings and ethical commitments. Indeed, the current version of cost-benefit analysis is grounded in the conservative discipline of welfare economics and seeks …

March 3, 2021 by Sidney Shapiro
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Amid the Sturm und Drang (storm and stress) of politics these days, one fact stands out — a large majority of Americans want more regulatory protection in a wide variety of areas, according to a recent poll of likely voters.

The results are consistent with previous polls that indicate that Americans understand the importance of government regulation in protecting them from financial and health risks beyond their control. They also indicate majority support for efforts by the Biden administration to renew government regulation — as well as a stark repudiation of former President Trump’s extreme anti-regulatory agenda.

The poll, conducted in January by Data for Progress and the Center for Progressive Reform, found that a majority of likely voters favor more regulation of drinking water pollution (74 percent); consumer product safety (71percent); privacy data (70 percent); air pollution (68 percent …

March 2, 2021 by Daniel Farber
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This post was originally published on Legal Planet. Reprinted with permission.

"The social cost of carbon" isn't exactly a household phrase. It's an estimate of the harm caused by emitting a ton of carbon dioxide over the many decades it remains in the atmosphere. That's an important factor in calculating the costs and benefits of climate regulations. For an arcane concept, it has certainly caused a lot of controversy. The Obama administration came up with a set of estimates, which Trump then slashed by 90 percent.

In an early executive order, Biden created a task force to revisit the issue. Last week, the task force issued its first report. It's an impressive effort given that Biden is barely a month into his presidency. The document provides a clear overview of the ways in which climate science and climate economics have advanced since the Obama estimates and makes …

Feb. 18, 2021 by Amy Sinden
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In the midst of this long dark winter, it's heartening to see the Biden administration lay out a bold agenda for a more secure, fair, and sustainable future. Holding the Biden administration to its promise to reform the regulatory process to "ensure swift and effective federal action" to "improve the lives of the American people" is a crucial part of that effort. From her perch on a key congressional committee with oversight over agencies and the rulemaking process, the Delaware Valley's own Rep. Mary Gay Scanlon is well-positioned to do just that.

While not on most people's radar, the system of centralized regulatory review poses a potentially significant obstacle to President Joe Biden's ambitious agenda. Originally created by President Ronald Reagan, this process functions as the bureaucratic instantiation of the "job-killing regulations" myth that Reagan so successfully infused …

Jan. 19, 2021 by Daniel Farber
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This post was originally published on Legal Planet. Reprinted with permission.

Conservatives love to complain about faceless bureaucrats, but blaming bureaucrats for regulations is hopelessly out of date. When Elena Kagan was a professor, she wrote an article called “Presidential Administration.” The article applauded her former boss Bill Clinton for seizing greater control of the regulatory process, away from agencies. That trend has accelerated to the point where the White House controls even the fine details of regulation.

Two things can get sidelined in presidential administration. One is agency expertise. No one in the White House has as much knowledge as agency experts about air pollution, or climate change, or endangered species.

The other thing that gets sidelined is active implementation of the law actually passed by Congress. The White House staff who review regulations care only about costs and benefits. The president and the higher-level staff …

CPR HOMEPAGE
More on CPR's Work & Scholars.
Aug. 17, 2021

The Hill Op-ed: Regulatory Analysis Is Too Important to Be Left to the Economists

July 21, 2021

Biden Said He Wants to 'Modernize Regulatory Review.' The EPA's Chemical Disaster Rule is a Great Place to Start.

June 9, 2021

CPR Scholars and Staff Back EPA's Plan to Eliminate Trump 'Benefits-Busting' Rule

May 21, 2021

Cost-Benefit Analysis and the Biden EPA

March 24, 2021

Biden's Overhaul Effort Should Include the 'Basic Principles' of Regulation, Too

March 23, 2021

To Democratize Regulation, Reform Regulatory Analysis

March 3, 2021

The Hill Op-ed: Attention, Lawmakers -- Regulation Is More Popular Than You Think