Regulatory Authority in the EPA - Policy Integrity · Regulatory Authority in the EPA: White House...

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Regulatory Authority in the EPA: White House Checks on EPA’s Authority Presented to The Federalist Society June 15, 2010 by Jason A Schwartz, Policy Integrity Legal Fellow

Transcript of Regulatory Authority in the EPA - Policy Integrity · Regulatory Authority in the EPA: White House...

Page 1: Regulatory Authority in the EPA - Policy Integrity · Regulatory Authority in the EPA: White House Checks on EPA’s Authority Presented to The Federalist Society June 15, 2010 by

Regulatory Authority in the EPA:White House Checks on EPA’s Authority

Presented to The Federalist SocietyJune 15, 2010

by Jason A Schwartz, Policy Integrity Legal Fellow

Page 2: Regulatory Authority in the EPA - Policy Integrity · Regulatory Authority in the EPA: White House Checks on EPA’s Authority Presented to The Federalist Society June 15, 2010 by

• What is Policy Integrity?• Non‐partisan advocacy organization and think tank

• Promotes balanced cost­benefit analysis in support of rational government decisionmaking

• www.policyintegrity.com

• Follow us on Twitter! 

Page 3: Regulatory Authority in the EPA - Policy Integrity · Regulatory Authority in the EPA: White House Checks on EPA’s Authority Presented to The Federalist Society June 15, 2010 by

White House Checks on Agency Authority

• Appointments and Removals

• Veto over Original Delegation

• Persuasion and Public Agenda

• Budget and Resources*

• Information*

• Inter‐Agency Harmonization*

• Regulatory Review*

• Procedure

• Cost‐Benefit Analysis***

• Substance

Page 4: Regulatory Authority in the EPA - Policy Integrity · Regulatory Authority in the EPA: White House Checks on EPA’s Authority Presented to The Federalist Society June 15, 2010 by

Atrazine as a Case Study of OMB’s Influence

• Budget and Prioritization

• Information

• Procedure, Delays, Burdens of Proof

• Regulatory Review and Cost‐Benefit Analysis

• What we’ve seen so far

• What to expect going forward

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Office of Management and Budget

• Endocrine Disruptor Screening Program, established 1998,  is a decade behind in its work

• Budget was cut 20% from 2003 to 2008

• Small funding increase for FY 2011

Page 6: Regulatory Authority in the EPA - Policy Integrity · Regulatory Authority in the EPA: White House Checks on EPA’s Authority Presented to The Federalist Society June 15, 2010 by

Office of Management and Budget

• Office of Information and Regulatory Affairs

• New Administrator Cass Sunstein

• Cost‐Benefit Analysis

• Just a tool; just a proxy

• Should be “humanized”

• Precautionary Principle

• No guidance; points both directions

• Availability bias

• Probability neglect

• Status quo bias

• System neglect

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Office of Information and Regulatory Affairs

• Paperwork Reduction Act

• Industry appeal

• NGO reaction

• Burden of proof?

• Value of information?

Page 8: Regulatory Authority in the EPA - Policy Integrity · Regulatory Authority in the EPA: White House Checks on EPA’s Authority Presented to The Federalist Society June 15, 2010 by

Office of Information and Regulatory Affairs

Page 9: Regulatory Authority in the EPA - Policy Integrity · Regulatory Authority in the EPA: White House Checks on EPA’s Authority Presented to The Federalist Society June 15, 2010 by

Cost­Benefit Analysis ­­ Required!

FIFRA Language• 7 U.S.C. 136(bb): “any unreasonable risk to man or  the  environment,  taking  into  account the economic, social, and environmental costs and benefits of the use of any pesticide”

SDWA Language• 42 U.S.C. 300g‐1(b)(3): “the Administrator shall…[analyze] incremental costs and benefitsassociated with each alternative maximum contaminant level considered”

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Page 10: Regulatory Authority in the EPA - Policy Integrity · Regulatory Authority in the EPA: White House Checks on EPA’s Authority Presented to The Federalist Society June 15, 2010 by

Atrazine’s Costs and Benefits in 2003/2006

• Costs of Restricting Atrazine

• $2 billion per year in yield loss and farm costs?

• “Imprecise” assumptions that “over‐estimate the true impact”

• Calculation based on “worst‐case,” “unlikely” scenarios

• Relied on private sector data; ignored a state government study

• Benefits of Restricting Atrazine

• Uncertainty  did  not  quantify,did  not  monetize,  did  not  assignprobabilities

• Also  did  not thoroughly  analyzequalitative benefits of alternatives

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Page 11: Regulatory Authority in the EPA - Policy Integrity · Regulatory Authority in the EPA: White House Checks on EPA’s Authority Presented to The Federalist Society June 15, 2010 by

Sunstein’s Ideal Approach to CBA

• Uncertainty

• Probabilities matter

• Anti‐catastrophe precaution

• Use breakeven/sensitivity analysis

• Evidence‐Based

• Better numbers and values (e.g., latency)

• Alternatives

• Retrospective analysis

• Humanized CBA

• Non‐quantifiable; qualitative

• Distribution and future generations

• Existence values?This is NOT what “humanized”cost­benefit analysis is about.

Page 12: Regulatory Authority in the EPA - Policy Integrity · Regulatory Authority in the EPA: White House Checks on EPA’s Authority Presented to The Federalist Society June 15, 2010 by

Modern Practice of CBA: Work in Progress

• Some Improvements

• Better numbers (e.g., jobs in air toxics rule)

• Consideration of catastrophes (e.g., SCC)

• Work Remains (e.g., coal ash rule)

• Probability neglect and worst cases

• Skewed presentation of alternatives

• Concerns About Access

• Industry meetings

• Industry influence

Page 13: Regulatory Authority in the EPA - Policy Integrity · Regulatory Authority in the EPA: White House Checks on EPA’s Authority Presented to The Federalist Society June 15, 2010 by

Thank you!

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