Required Reading Regulation Contest

Thoughts About September 11, 2001: Airline Security
(From an essay placed onTrekLok.com September 18, 2001)

  The current direction of the FAA with respect to securing airplanes is the same as it's always been and is going to get a lot more people killed than it already has. While I feel strongly about many of the things I've said thus far but am aware that there are many equally valid variations, on this one I'm downright fanatical, because the entire topic can be netted down to a couple of inarguable truths: 1- The FAA's entire security thrust is to prevent people from carrying weapons onto airplanes. 2- You don't need weapons to hijack an airplane. Consider this scenario: Six or eight very large religious fanatics who are physically fit, trained in hand-to-hand combat and already committed to suicide, board a plane at a US airport. Once the flight is airborne they stand up, move to the front of the plane and announce they're taking over. While the passengers -- stunned, leaderless and uncoordinated -- sit immobilized by fear, several of the terrorists guard the cockpit entryway while three others break in and incapacitate the pilots, shut down the engines and, with two good kicks, bend the thrust levers so they can no longer be moved, irretrievably dooming the plane. All of this takes less than two minutes, and there are no weapons involved. The most sophisticated security devices in the world, functioning perfectly and manned by the best agents available, would not have caught these people before they boarded. With slight variation and two more men, they could take control of the plane and fly to, or into, anyplace they wanted. If they felt they needed weapons, a couple of tennis racquets with the heads broken off would do fine, or broken bottles from the galley, or stiffening struts from the bottom of carry-on bags, demonstration seat belts used as whips, wooden hangers from the first class closet, fire extinguishers (sprayed or used as heavy clubs), ceramic knives undetectable by security screeners, aerosol hairspray that makes a great blowtorch, toothbrushes with the ends sharpened...etc., etc.

None of these are really necessary, though. They don't need to subdue an entire plane full of passengers. All they have to do is secure a 4-foot wide passageway between the front cabin and the cockpit, and only for two minutes. Of course, there is the matter of the cockpit door being locked. That might add an extra 15 seconds to the operation while they kick it in or use rolling serving carts as battering rams, but a better idea is just to wait for one of the pilots to come out to pee, or for one of the flight attendants to deliver a cup of coffee, or maybe the hijackers grope her a little or pretend to be drunk and unruly so one of the pilots comes out to put a stop to it . You get the point. So what's the answer?

There is only one way to prevent hijackers from gaining control of an airplane and that is to harden the cockpit. No way to get in short of explosives (which are very easy to screen on the ground), and nobody goes in or out during a flight. Some aircraft re-design will be required (secure walls and doors, a mini-lav for the crew, a slot to get food in and out), and it will cost, but it will be less than the cost of not doing it. I look forward to the day when a cockpit door opening during a flight will seem as alien to us as smoking in an elevator seems now. Meanwhile, the FAA bans corkscrews and forks. Unknown Author

The following articles are taken from Congressional Quarterly Weekly

Turf Battles, Lobbying Blitz Roil ‘Broadband’ Deregulation
How to open the market to high-speed Internet service and give battered tech sector
a break has become one of the Hill’s most fiercely debated issues
May 5, 2001 pp 1012 and 1013

RE: LEGISLATION HR 1542 BY LAUZIN AND JOHN D. DINGELL, D-MICHIGAN TO DEREGULATE THE MARKET FOR HIGH-SPEED "BROADBAND" INTERNET TRAFFIC

Tauzin and Dingell's proposal seeks to address the way data is transmitted over long distances, as well as how independent phone companies can connect to regional Bell companies' local networks.  But it has raised competitiveness issues and prompted rival bills and fierce lobbying, including a spate of print and television ads. ...

John Conyers Jr. of Michigan, the ranking Democrat on the Judiciary Committee, and Christopher B. Cannon, R-Utah, introduced as yet unnumbered bills May 3, 2001 that would require the Bells to reduce their share of local phone markets to a maximum of 85 percent before they would be allowed to carry any Internet traffic.

One of the bills would also create a $3 billion loan program to help independent telecommunications companies deploy broadband services to underserved areas....

The controversy over the Tauzin-Dingell bill comes at a particularly sensitive time for the telecommunications industry.  Internet service providers, small independent competitors to the Bells and equipment manufacturers have all been buffeted by the economic downturn.

Some high-tech interests have questioned whether giving the Bills the kind of breaks that Tauzin and Dingell are proposing would chill investment in their smaller competitors, which have struggled to compete.  But supporters of the bill are convinced that it would speed deployment of broadband services and help jump-start the information technology sector.

The Tauzin-Dingell bill has become the most hotly lobbied technology legislation in t he 107th Congress, with interest groups on both sides running a slew of print, radio and television advertisements.

Prominent players in the debate include the United States Telecom Association, the primary lobbying group for the Bells.  It argues that its members need regulatory relief to compete with cable television companies and other high-speed Internet providers.

Opponents include long-distance carriers such as AT&T Corp., competitive local exchange phone carriers, Internet service providers and consumer groups.  They contend that the Tauzin-Dingell bill would give the Bells a stranglehold on high-speed Internet service and delay the development of next-generation Web technology. ...

If the Tauzin-Dingell bill is referred to the Judiciary Committee, it is unclear how many amendments will be added to the underlying language and whether they will water down its deregulatory intent. ...

Seeking an Alternative
"There is more pressure than ever for Congress to facilitate deployment of high-speed broadband, but Tauzin-Dingell is not the only game in town," said Adam D. Thierer, director of telecommunications studies at the Cato Institute, a libertarian think tank ... lawmakers may turn to the idea of giving tax credits to telecommunications companies that deploy broadband systems.  That's the goal of companion bills (S 88, HR 267) by Sen. John D. Rockefeller IV, D-W.Va., and Reps. Phil English, R-Pa., and Robert T. Marsui, D-Calif.

The legislation calls for a 10 person annual tax credit for five years to companies that bring "current generation" broadband to residents and businesses in underserved rural and inner-city areas.  The measures also propose a 20 percent annual credit for five years to companies that invest in "next generation" broadband services for residential customers.

An analysis of a similar proposal last year by the Joint Committee on Taxation estimated that such a credit would cost $1.4 billion over 10 years.  A key concern of supporters is whether the broadband credit can be bundled with other breaks for business in a larger tax bill without breaking congressional budget caps.

"A lot of the senators represent a lot of the rural parts of America, so my guess is there would be a lot of interest in it," said Max Baucus of Montana, ranking Democrat on the Senate Finance Committee.  "But it's all in the mix [of tax provisions], and we have an upper limit." 

Bill to Relieve Small Businesses Of Liability for Pollution Cleanup
Advances Quickly in House
May 19, 2001 page 1161

RE: LEGISLATION HR 1831 TO EXEMPT COMPANIES THAT DUMP SMALL AMOUNTS OF WASTE FROM SUPERFUND LIABILITY  

The bill would protect businesses that discard less than 110 gallons of liquid waste or less than 200 pounds of solid, non-hazardous waste at a superfund site.  It would also apply to small businesses that dump ordinary garbage in a landfill that later is designated a superfund site.

The superfund law (PL 96-510) has been the nation's main tool for cleaning up toxic waste sites since 1980.  Congress has not been able to agree on its reauthorization, so some lawmakers decided to move the small business exemption separately. ...

Companies that want to be exempt from superfund liability would have to meet several criteria, including:

  Disposal of the waste must have occurred before April 1, 2001.

  The waste must not have contributed significantly to cleanup costs.  

  The company that disposed of the waste must have complied with all government requests for information and not impeded the cleanup.  

  The company and its employees must not have been convicted of a crime related to disposal of the waste.

The Transportation panel and the Energy and Commerce Environment and Hazardous Materials Subcommittee approved the bill by voice vote May 16, 2001.  The full Energy and Commerce Committee approved it by voice vote the next day.

Supporters say the measure is aimed at protecting businesses that have not significantly harmed the environment from being sued by large polluters that want to recover some of their government-mandated cleanup costs.

The bill specifies that if a polluter wants to seek payments from a business that has been exempted from government cleanup requirements, the burden of proof is on the company trying to recover costs.  That company must prove the smaller business failed to meet the conditions for exemption.

The bill also codifies the EPA's current practice of reducing fines related to a cleanup if a company proves it cannot afford to pay them. ...

FLURRY OF PAPERWORK TURNING INTO BLIZZARD
By Mike Christensen    April 28, 2001 page 896

Soon after they took over Congress in 1995, Republicans decreed that the burden of filling out federal paperwork had to be eased.  Instead, according to a new General Accounting Office report, it has increased.

In fiscal 2000, in fact, federal paperwork increased by a net of nearly 180 million "burden hours," the second largest yearly gain since the law (PL 104-13) was passed. 

A burden hour is supposed to measure the time it takes to collect data and fill out federal forms, surveys and reports.

Though the measurement has been used for half a century, the GAO remarked to a House Government Reform subcommittee April 24 that the burden hour's relationship to the real burden "is unclear."

Nevertheless, the main engine of these burden hours is the Internal Revenue Service, which, according to the GAO, is responsible for 83 percent of the paperwork load, followed at a great distance by the departments of Labor, Transportation and Health and Human Services and the Environmental Protection Agency.

Though some agencies reduced their paperwork burdens in fiscal 2000—the Federal Trade Commission and the Defense and Transportation departments—the IRS's estimate for fiscal 2000 increased by 240 million burden hours over fiscal 1999.

The culprits: changes in tax forms 1040 and 1040A. (The second is the short form.)

Under the law, the Office of Management and Budget is supposed to keep the flurry of forms in check.

NOMINEE'S FAITH IN RISK ANALYSIS SHARPENS DEBATE ON RULEMAKING PROCESS
By Rebecca Adams    May 5, 2001 pp 992 and 993

To his supporters, John D. Graham, the soft-spoken Harvard professor nominated to head the Office of Information and Regulatory Affairs, is an academic who will apply common-sense evaluations to the regulations issued by more than 50 federal agencies, ensuring that government resources are applied wisely.  They say it makes no sense to spend taxpayers' dollars on problems that may be far less dangerous than perceived.

To his opponents, Graham is someone who will use a patina of science to block government rules needed to protect Americans from health, safety and environmental hazards.

Graham is getting attention because he is one of the foremost proponents of "risk analysis"—which calculates the likelihood of a hazard against the costs and benefits of preventing it.  Every major government regulation overturned or created by the Bush administration would go through his agency, which is part of the Office of Management and Budget (OMB).

Robert W. Hahn, director of the American Enterprise Institute Brookings Institution Join Center for Regulatory Studies, says Graham will use "the same [critical] people use every day" to make decisions.  "When you think about crossing the street, you [weigh] the increased risk of an accident against the benefit of getting to the other side," he said.

But Joan Claybrook, president of the consumers group Public Citizen, questions the research techniques used by Graham, director of Harvard's Center for Risk Analysis. "The problems with his methodology is that it's garbage in, garbage out," she said.  "It's not a neutral evaluation; it's policy-driven toward a predetermined finding."

Sally Katzen, administrator of the Office of Information and Regulatory Affairs under President Bill Clinton, does not believe Graham will drive the agency into a stark anti-regulatory stance.

"Can [risk analysis] be manipulated for ulterior motives?  Sure," said Katzen. "Do I suspect that's what the office is going to do? I don't, actually ... He's not a madman or an ideologue by a longshot."

Everyone involved in the regulatory debate agrees that Graham will have one of the most politically sensitive jobs in the administration if he is confirmed by the Senate, as most observers expect.

"This executive office is pure hell," said Gary Bass, director of OMB Watch, a public interest group that has been monitoring the agency since the Reagan administration.

"You're hit by the politics of the president.  You're hit by demands from industry, public interests, Congress, not to mention the agencies—and almost all of those people have different perspectives. Because of the high stakes, you always end up alienating someone," he said.

Cost and Benefits
Graham argues that risk analysis is a valuable tool in setting budget and policy priorities, and that it makes sense to use systematic methods to figure out whether a perceived threat or hazard is real. He also believes new risks may be created when regulations are issued to fix a problem.

"The basic problem we face as citizens and as policymakers is a distortion of priorities," Graham told the Senate Governmental Affairs Committee in 1995, when he was testifying about regulatory overhaul. "We regulate some often tiny or nonexistent risks too much and ignore larger and better-documented risks."

Critics question the way Graham gauges proposed solutions. Instead of estimating the number of lives that would be saved by a regulation—one commonly used standard—Graham tries to determine how many years of life would be saved.  That means, say critics, that he dismisses problems that might not arise for decades and solutions that might add a few high-quality years to an individual's life.

Wendy Lee Gramm, who headed the Office of Information and Regulatory Affairs in the mid-1980s, defends Graham's methodology. "People say, "How can you value a life?" But the point is, we're always evaluating tradeoffs," said Gramm, now director of regulatory studies at the Mercatus Center of the George Mason University in Arlington, Virginia.

"Sometimes it's not life or death; it's just extending a life," said Gramm, who headed a regulatory agency, the Commodity Futures Trading Commission, from 1988 to 1993. "It's not an all-or-nothing decision."

Public Citizen, however, says its criticism of Graham goes beyond his methods. The group claimed in a March report that he has skewed data to support the claims of corporate donors to the Harvard center such as Merck & Co., Inc., Exxon Mobil Corp., Bethlehem Steel Corp. and the Shell Foundation.

Claybrook takes particular issue with a Harvard center study, released in July, on motorists' use of cell phones. Researchers, including Graham, said they could not clearly document how much the risk of an accident increases if a driver is talking on a cell phone.

"We simply do not have enough reliable information on which to base reasonable policy," the study concluded. "Although there is evidence that using a cellular phone while driving poses risks to both the driver and others, it may be premature to enact substantial restrictions."

Claybrook believes it is obvious that cell phone regulation would save lives and notes that the study was funded by a $300,000 contribution from AT&T Wireless Group.

"It's simplistic and naive to say that the funding automatically corrupts the findings of the study," said David Ropeik, a spokesman for the Harvard Center for Risk Analysis.  "We are funded by a number of government agencies, but [critics] don't mention that because it doesn't fit into their thesis.""

Ropeik said the cell phone study was reviewed by outside experts and included a disclosure of its funding source.

Public-interest groups say they fear a return to the early days of the Reagan administration, when regulations disappeared down a "black hole" at the Office of Information and Regulatory Affairs. During that time, congressional Democrats charged, regulations would go in for review and disappear for months or years without explanation.

OMB Watch's Bass said he is also concerned the White House may retreat from the more open regulatory processes that evolved under Clinton.

"This nominee has to go on record in terms of what kinds of transparency he would bring to [the agency]," Bass said. "Right now [under Bush], you can't find out anything. You have no idea what criteria is used for upholding some rules and withdrawing others."

Congressional critics worry Graham will be reluctant to allow any rules to go forward. Cost "could lead you always to say no" to regulations, said Henry A. Waxman of California, ranking Democrat on the House Government Reform Committee.

"Not only has the administration acted so far in complete disregard for the views of the public, but they're also putting people in place like Graham, who will continue that pattern," Waxman said.  

Some Democrats on the Senate Government Affairs Committee are eager to quiz Graham, who joined OMB as a consultant in mid-March and has been visiting Capitol Hill regularly to seek political guidance from his allies and a chance to plead his case before skeptics.  

"Based on what I've read about Mr. Graham, we're going to take a very close look at his philosophy, his research [and] the impact of h is views about rules and regulations on health and safety," said Sen. Richard J. Durbin, D-Illinois

Still, Graham is expected to be confirmed easily with the support of Democrats such as Carl Levin of Michigan. Three years ago, when Levin and Chairman Fred Thompson, R-Tennessee, were pushing for a bill that would require agencies to include risk analysis when writing regulations, Graham testified in favor of their proposal. The measure was reported out of committee but the GOP leadership opted against bringing it to the floor.

Graham's Agenda
Every president since Jimmy Carter has ordered federal agencies to weigh potential costs and benefits when writing a rule.  Today, every major regulation with an economic impact of more than $100 million must undergo a formal cost-benefit evaluation.

It is more difficult to evaluate risks, however. Many agencies try to determine the likelihood that a particular hazard could occur when formulating regulations—but there are no government standards about whether or how to use risk analysis.

Graham would likely change that.  Over the past decade, he has repeatedly testified before Congress about problems in the current rule-making process. In 1995 testimony before a House Commerce subcommittee, Graham outlined suggestions to update the system. They included:

• "Broad-based rankings of health, safety and environmental risks that cut across the jurisdictions of existing agencies" and "could help inform the budgetary allocations of Congress and OMB."

• A mechanism "to make sure that the findings of benefit-cost analyses are actually used by federal agencies when making specific rulemaking decisions."

• Stronger White House oversight of federal agencies. "No significant risk assessment should be published by a federal agency without the opportunity for review by an interagency panel of experts under the leadership of the executive office of the president," said Graham.

American Enterprise Institute Brookings analyst Hahn predicts that Graham's interest in more risk analysis will have two main effects on government policy.

"The administration will be less likely to pass regulations that would be burdensome to the average consumer, and ... there will be greater attention to achieving the same objectives in less costly ways," Hahn said. "We'll see costs more seriously considered."

A former OMB administrator says Graham's toughest task may be confronting the tension that has always existed between his office and regulatory agencies.

"A lot of agencies have bureaucratic staff with their own agenda and special interests," said James C. Miller III, who headed OMB under Reagan.

"Graham is going to make sure that he has a lot of clout in the White House so that when there's a confrontation with an agency—and there is always some sort of defining showdown—he will win."

GOVERNMENTAL AFFAIRS:  NET WATCHDOG
By Adriel Bettelheim and Rebecca Adams.   May 26, 2001 page 1229

The Governmental Affairs Committee spends most of its time overseeing the nuts-and-bolts procedures of the federal bureaucracy, such as computer and accounting operations and the collection of census data. But chairmanship of the panel will nonetheless provide a high-profile platform for 2000 Democratic vice presidential candidate Joseph I. Lieberman of Connecticut to criticize the Bush administration and further his presumed 2004 presidential aspirations.

Unlike current Chairman Fred Thompson, R-Tenn., Lieberman is expected to raise frequent questions about White House decisions to roll back environmental and workplace safety regulations. He also is likely to ask whether the administration consulted with industry representatives about regulations under development, in violation of a 1993 executive order issued by President Bill Clinton. ...

Lieberman already has expressed concern over Bush's regulatory policies. He was one of three panel Democrats who voted against the nomination of Harvard University profession John D. Graham to be administrator of the Office of Information and Regulatory Affairs. Lieberman cited Graham's past criticisms of clean-air and clean-water statutes and questioned whether he would weaken federal health, environmental and safety standards. Nevertheless, the committee voted 9-3 on May 23 to recommend Graham's confirmation.

The Connecticut lawmaker also has sent letters to the departments of Agriculture and Interior and to the EPA seeking explanations of how the administration made decisions to scuttle some environmental and labor regulations that Clinton issued shortly before leaving office. The regulations would have imposed tougher standards for arsenic in drinking water and for the cleanup of hardrock mining operations and closed off 58.5 million acres of natural forest land to development. He asked for descriptions of any meetings that were held and documents that were exchanged, but aides said May 22 that Lieberman has gotten no response. ...

DEAL FALLS THROUGH ON ERGONOMICS RULES
CQ Almanac 2000 November 4, 2000  page 2-111

Occupational Safety and Health Administration (OSHA) has been at work on regulations to limit injuries or disabilities from performing repetitive tasks ... The [regulations] would require that 1.6 million employers set up programs to limit the repetitive motion injuries of about 27 million workers—from airport cargo handlers to automobile assembly line workers, and from grocery checkout clerks to textile mill weavers. Another 300,000 businesses each year would have to act the first time a worker suffered a job-related repetitive stress disorder that required medical treatment, reassignment to light duty or time off ... Business groups say the pending rules' breadth and vagueness would drive up their cost of compliance—their estimates range from $14 billion to $80 billion a year—and would wrongly cut into business productivity and profitability. OSHA and Labor Department officials, meanwhile, say the rule is intended to be flexible and would not require most companies to act. While costing employers $4.2 billion annually, they say, the rule would also save them $9 billion a year in lost productivity. This is the argument embraced by labor as well.

In the drive to reshape federal rules, executive branch is seen as the path of least resistance

GOP, BUSINESSES REWRITE THE REGULATORY PLAYBOOK
By Rebecca Adams     May 5, 2001  pp 990-996

Talk about efficiency. Even before tough new air conditioner energy-conservation standards were published by the Clinton administration in January, several major manufacturers began a concerted lobbying campaign to change the rules.

Then George W. Bush became president, and the effort took on greater momentum. The industry won sympathy from important GOP lawmakers such as Senate Majority Leader Trent Lott of Mississippi, Senate Finance Committee Chairman Charles E. Grassley of Iowa and members of the Texas congressional delegation. They petitioned White House aides and officials from the Office of Management and Budget (OMB), which oversees regulations. And they enlisted the support of career Department of Energy officials who, according to industry leaders, had recommended increasing air conditioner and heat pump efficiency by 20 percent instead of the 30 percent that outgoing Secretary Bill Richardson had ordered.

Within weeks, the drive paid off. On April 13, Bush political adviser Karl Rove told reporters that the administration would increase the efficiency standards by 20 percent. The industry was satisfied but environmentalists were furious.

A new form of regulatory activism appears to be taking hold in the Republican-controlled government. GOP lawmakers, who for years were chafing under President Bill Clinton's regulatory agenda, are moving to undo his policies. And industry lobbyists—aware of the difficulties of trying to shepherd legislation through the evenly divided Senate—are pushing hard for the administration to use its executive powers to lessen the government burden on business.

In the Reagan years, Republicans complained of the "iron triangle"—an unbreakable alliance among Democratic committee chairmen, agency officials and interest groups that worked in concert to achieve common goals, whether it was funding for special projects or protecting specific constituencies. Reagan OMB directors David Stockman and James C. Miller III made it part of their mission to break the triangle.

Now, it appears, the old iron triangle has been turned on its head. Environmentalists and consumer activists say they fear the formation of a new triad—composed of industry officials, the White House and GOP committee chairmen—that leaves them out of the equation.

"It's fair to say they haven't been seeking us out for advice on how to proceed," said Debbie Sease, legislative director for the Sierra Club.

Today's triangles may not have the permanence or secrecy that characterized the networks of the past. But many regulatory experts predict that the new dynamic will control the rule-making process in more than 50 federal agencies. Corporate lobbyists, mindful of the Republicans' thin margin of control in Congress, are expected to make their case directly to the White House and to political appointees at the agencies, where they are likely to find a sympathetic ear.

"There's a new level of belief that agency regulations are likely to be more helpful than harmful," said Roy Blunt, R-Mo.,, House chief deputy whip. "For the past eight years, no one ever thought that could be the case. It's mind-boggling to be able to call former House staffers who are now in the White House or at an agency to see what they can do to help us."

He and other Republicans say that the administration is simply following the model created by Clinton, who they argue pursued a policy of aggressive regulation, especially in the areas of environment, health and workplace safety.

"I think it's appropriate for this White House to use the administrative side as aggressively as the previous administration," said Sen. Judd Gregg, R-N.H., a member of the Governmental Affairs Committee.

Gregg expects one of the main tools that Republicans will use to change regulatory policy will be OMB's Office of Information and Regulatory Affairs (OIRA), which monitors every major regulation that agencies issue. The nominee to head that office, Harvard professor John D. Graham, is known as an expert on and advocate of risk analysis, a tool researchers use to evaluate the relative harm that can come from various threats to human health and the environment.

Risk analysis is controversial because critics say that it can be used to undermine or undo regulations that society needs.  But others say it can be useful to avoid imposing burdensome regulations on business when the risk is not really that great ...

The Democrats' challenge is likely to become greater as Bush appointees—many of whom come from the private sector, conservative think tanks and trade groups that vigorously opposed Clinton policies—fill agencies and take full control of the regulatory process.

"If you think it's been rough so far, just wait," said William Kovacs, U. S. Chamber of Commerce vice president for technology, environment and regulatory affairs.  He predicts big fights over some of the environmental issues, such as clean air standards that were left unresolved in the Clinton years.

Business groups and their congressional allies have a long list of goals.  Among them:

• They expect the Occupational Safety and Health Administration to take a cooperative rather than confrontational approach in getting business to improve work conditions.  Republicans have long argued that this agency is so overbearing and punitive that businesses are afraid to seek its help in addressing problems.

• The health care industry and House Ways and Means Committee Chairman Bill Thomas, R-Calif., have long sought to overhaul procedures used by the Health Care Financing Administration (HCfa), which regulates Medicare and Medicaid, and curtail its power. Now that top hospital lobbyist Thomas A. Scully has been nominated to head the agency, Thomas and the industry are more likely to get what they want.

• The Bush administration is preparing a national energy plan, scheduled to be released in the next few weeks, that is expected to contain a number of proposals that can be accomplished by administrative action, such as allowing increased drilling on public land and easing regulatory restrictions on energy producers. Other agencies are considering low-profile ways to help ease the regulatory burden on businesses.

Undoing Clinton's Rules
During his final weeks in office, Clinton issued a number of rules that Republicans say were traps deliberately set to put Bush in politically difficult positions. Clinton signed off on more than 50 regulations after the election, prompting Bush spokesman Ari Fleischer to call him a "busy beaver" in his final days. Republicans note that it is not unusual for incoming presidents to conduct a broad review of last-minute rules signed by their predecessors.

"Some regulations that the Clinton administration put forward were blatantly political," said Rep. Christopher Shays, R-Connecticut "And I believe that some of them were done to stiff this administration."...

Thus far in his term, Bush has already signed legislation (PL 107-5) to kill a Clinton ergonomics rule opposed by many major business groups, who argued that it would cost too much to implement. He has also signaled his intention to reverse or revise Clinton regulations, including one to toughen cleanup standards for hardrock mining operations.

Bush also stoked public criticism by reneging on a campaign pledge to regulate carbon dioxide and by rejecting the Kyoto Protocol on global warming.

Perhaps the most controversial move was reversing a Clinton rule to reduce the levels of arsenic in drinking water. The rule, issued in December, would have lowered the amount of arsenic permitted in drinking water to 10 parts per billion from 50 parts per billion. EPA Administrator Christine Todd Whitman announced March 20 that the rule would be withdrawn, leading Democrats and some GOP moderates to complain that the administration was out of touch with the public. Some political scientists believe the issue may have tipped the political scales.

Bush's regulatory strategy will be labeled in two categories, "Before arsenic and after arsenic," said Gary Bass, director of OMB Watch, a group that monitors the agency.

George C. Edwards III, professor of political science at Texas A&M University and director of the Center for Presidential Studies in the Bush School of Government and Public Service, said that outcries like the one over arsenic may force the White House to voice more concern about the environment.

"They got a negative reaction to the first regulatory decisions on environmental protection," Edwards said. "It's not what they actually meant...and they've been playing catchup ever since. That fact may temper them.."

Complaints from environmental activists—and moderate Republicans, who fear a backlash from suburban voters in 2002—have caused the White House to become more wary about overturning Clinton rules—and more savvy about explaining any changes. Bush announced several pro-environment moves the week of April 16, including decisions to uphold Clinton rules restricting wetlands development and lowering the levels at which factories must report lead emissions.

The White House also has upheld Clinton regulations involving complex medical privacy rules and tougher emission standards for diesel engines. But those actions have not muted criticism. Consumer groups point out that the Bush administration agreed to change the privacy regulations largely because health industry groups protested that the rules would make it tougher to dispense prescriptions and treat patients.

The president's decision to uphold Clinton's diesel fuel emission standards pleased automakers as well as environmental groups. According to energy industry lobbyists and environmentalists, however, the administration is quietly conducting a study that could lead to the rules being relaxed.

Observers predict the administration will always have a strong conservative and pro-business ideology at its core, but they say it is now presenting a more cautious public face to stem concerns.

Graham's Role
GOP lawmakers are encouraging the administration to consider the costs and benefits of any new rules on business, including rules that were proposed during the Clinton years. The focus of that effort will be the OMB's regulatory affairs office.

"This administration will take a responsible, conservative approach," said Senator Rick Santorum, R-Pennsylvania. "We'll do it in a way that's supported by the evidence, and not to appease interest groups."

OMB and Congress have a long history of conflict. During Republican administrations, Democrats charged that OMB officials were delaying, changing or killing regulations ordered by Congress and written by government experts. The agency would write a rule, OMB would put it under "review," sometimes indefinitely, and lawmakers would protest.

Reagan beefed up the agency's oversight power by issuing an executive order in 1981 that required agencies to prove that a regulations's benefits would "outweigh" its costs—a standard Democrats said was often tough to prove. Later, Reagan banned agencies from issuing any regulatory policies that were not approved by OMB at the start of each year.

Democratic chairmen in the House were outraged by Reagan's actions, and John D. Ingell, D-Michigan, then head of the House Energy and Commerce Committee, routinely called officials to Capitol Hill and demanded that they explain regulatory decisions.

"Dingell would beat up on me all the time," said Christopher DeMuth, president of the American Enterprise Institute and an administrator of OMB's regulatory affairs office under Reagan.

In 1986, the Democratic-controlled House forced a showdown by deleting funds for OMB's regulatory division from the fiscal 1987 budget. Lawmakers restored the money after OMB director Miller and Wendy Lee Gramm, head of the regulatory affairs office, agreed to make the rule-making process more transparent by disclosing White House documents related to regulatory decisions.

In the first Bush administration, Democrats pushed through a number of bills to strengthen clean air standards. And in each case, the Democratic-controlled Congress, aware of OMB's power, was very specific about how the agencies were to implement the laws such as amendments to the 1990 Clean Air Act (PL 101-549).

"We had to write a lot of detail in the law because we were afraid to leave it up to EPA," said Henry A. Waxman of California, ranking Democrat on the House Government Reform Committee. "We had to mandate things that otherwise would be [optional] if you had confidence that the people administering it had the same goals in mind as the authors."

After Clinton took office in 1993, he tried to open the regulatory process further when he issued an executive order requiring the White House to document any closed-door meeting between OMB officials and outside groups on a regulation. The order, which also required the cost of a regulation to "justify" its benefit, is still in effect.

With the GOP controlling the White House and Congress, Dingell said he may use  discharge petitions—which members may sign if they want to bring a bill from committee directly to the floor—to publicize the issues. But he realizes his options to force real change on a GOP administration are limited.

"I will still do what I can," Dingell said. "But I [could] do a lot more if I were still chairman."

Blocking Regulations
The White House and Congress have several weapons beyond writing a new law that they can use to kill or alter regulations. They include:

• Reopening a rule. The 1946 Administrative Procedures Act allows that White House to reopen the rulemaking process by soliciting new public comments, as it did in February with the medical privacy regulation. After considering the comments, the president can either modify a regulation or allow it to take effect without changes.

Enforcement. They can also limit the funds available to agencies to enforce regulations. Bush has proposed cutting the funds of nine agencies and the EPA in his fiscal 2002 budget, which could affect the enforcement of a variety of labor, environmental, health and public safety regulations.

Congressional review. Congress can reverse a rule thorough the Congressional Review Act (PL 104-121). Conservative lawmakers successfully used it for the first time ever in march to kill the ergonomics regulation.

The White House can indirectly reverse a regulation through the courts—either by mounting a weak defense of a rule written by a previous administration or by seeking a settlement with plaintiffs whose arguments it supports. This tactic is a gamble because judges can be unpredictable and their rulings can be appealed. But since the creation of numerous health and safety laws in the 1970s, legal challenges to regulations have become a common tool of both business and public-interest groups.

"One of the best ways to get rid of a regulation is to get a friendly lawsuit," said Jim Tozzi, deputy administrator of the regulatory office under Reagan.

For example, the administration tacitly encouraged a suit brought by the timber industry and western state officials against a Clinton regulation that blocked road building in 58.5 million acres of national forests.

In the suit, the Boise Cascade Corp., a major timber company, argued that the rule was not legal because the Clinton administration did not follow the property procedures in writing it. Environmentalists had been watching the case to see whether the Bush administration would mount a vigorous defense of the rules. But on May 4, the administration announced a compromise under which the rule would go forward, but could be changed to allow forest plans to be written on a case-by-case basis, with input from local officials.

The judge in the case, U. S. District Court Judge Edward J. Lodge, had indicated that he thought the Clinton process was "grossly inadequate." He must decide by May 12 whether to block the rules.

Environmental groups, which cited the roads issue to attack Bush's environmental record, said the administration's plan was actually an effort to undermine the regulation. The groups had used an advertising campaign that features bucolic images of forests and wildlife, then shift jarringly to pictures of trees falling to the sound of chainsaws. A narrator says timber companies are trying to destroy the nation's forests, and that Bush may let them. The ad effort, by the Heritage Forests Campaign, released new ads the week of April 30 calling on Bush to strongly defend the rules.

The White House is also said to be considering settlements in several lawsuits that seek to overturn Clinton regulations, including rules to phase out the use of snowmobiles in national parks and the reintroduce grizzly bears to areas in Idaho and Montana. In another suit, business groups are seeking to kill more stringent reporting requirements for lead emissions. In this case, Bush kept the Clinton rule, which required more businesses to report their lead emissions.

Environmental Defense and the Natural Resources Defense Council are joining as many suits as possible in defense of the Clinton rules. The groups say they will fight hard to prevent settlements.

Political Fallout
Democrats say they expect a political backlash from the Bush administration's regulatory decisions.

"We have an election in two years," said Sen. Barbara Boxer, D-Calif. "Let the people decide whether President Bush is being reasonable."

This month, the Sierra Club is running ads criticizing Bush on the environment. A coalition of environmentalists is also issuing daily faxes, e-mails and calls to supporters to generate concern about Bush's energy policy.

Bush's moves on the environment have "invigorated us to try to find ways to stop the administration," said Patty Murray, D-Wash., chairwoman of the Democratic Senatorial Campaign Committee.

A Democratic party television ad released April 29 attacks Bush's arsenic decision and criticizes a proposal by the Department of Agriculture, later scuttled, that would have ended testing of school lunch meat for salmonella.

The ad features a young girl asking, "May I please have some more arsenic in my water, Mommy?" A boy follows with the question, "More salmonella in my cheeseburger, please?"   

Administration officials call the ad unfair—Rove called it "laughable"—particularly since the salmonella proposal was never an official position.

"This administration will be judged over the totality of its record," Rove said on NBC's "Meet the Press" April 29.

In the meantime, such ads can be expected to continue as the two parties battle over the role and scope of the regulatory process in getting federal policies changed. And just as industry can effectively mobilize its allies in Congress and the agencies, experts say, so can their adversaries.

"We're seeing a fundamental shift in power," said Harvard's King. "When there are shift like this, there is always some turmoil...it's natural."

MEMBERS CONSIDER STREAMLINING ENVIRONMENTAL REVIEW,
PERMIT PROCESS FOR ROAD AND AIRPORT EXPANSIONS
By James C. Benton  May19, 2001 page 1163

Having committed billions of dollars to fund new highway and airport projects across the country, members of Congress are now looking for ways to expedite their construction.

"The average time for a highway, I believe, is 12 years, [and] the average time for an airport is 15, and that's just unacceptable," House Transportation and Infrastructure Chairman Don Young, R-Alaska, said in a recent interview.

Subcommittees of Young's panel will hold a series of hearings the week of May 21 to gather information on problems with transportation backlogs.  The series is dubbed "congestion week" by committee staffers.

Among the options under consideration is ordering federal, state and local agencies to speed building permit applications by conducting reviews, concurrently instead of consecutively.

President Bush's fiscal 2002 budget calls for some $35.3 billion for highway improvements—an amount consistent with the 1998 surface transportation law (PL 105-178)—and $12.9 billion for airport improvements under the 2000 Federal Aviation Administration (FAA) reauthorization (PL 106-181).

Many members believe the additional money will not produce projects fast enough unless environmental reviews and the permitting process are streamlined. ...

Congestion Worsening
Environmentalists and others are skeptical of pushing major project reviews along too quickly, especially under the Bush administration's deregulation agenda. Regulatory "reform" occupies a significant place in proposals like the energy policy the White House unveiled May 17.

Yet worsening congestion has brought a growing number of calls from members of Congress for some kind of program to ensure that needed projects are not unnecessarily delayed. 

Evidence of the problem abounds.  On May 7, the Texas Transportation Institute issued a report that said traffic congestion in 1999 cost the nation $78 billion, forced travelers to spend 4.5 billion hours and 6.8 billion gallons of fuel sitting in traffic, and caused an average delay of 36 hours per person per year.

An FAA study issued in April found that demand for air travel has reached the point where some of the nation's busiest airports have more flights scheduled for landings or takeoffs than they can handle. ...

Rep. John L. Mica, R-Florida, suggested in a May 16 interview that "environmental streamlining" could mean combining aviation easement provisions, or cutting the time for state or local agencies to review permits by making permit processes run concurrently.

James L. Oberstar of Minnesota, the ranking Democrat on the House Transportation Committee, is eager to see what proposals emerge from the hearings, but he will seek to ensure a balance between accelerating projects and protecting the environment, Democratic aids said. "He's not going to sacrifice the environment to build a runway," an aide said.

At an April 4 hearing on congestion, Transportation Secretary Norman Y. Mineta said he has made reducing transportation congestion a priority, and he supports the principle of streamlining permit and construction processes for airport runways.

"I knew that, in addition to safety, a central challenge was addressing the gap between the demand for transportation and the capacity of our transportation infrastructure," Mineta said at a recent House Appropriations subcommittee meeting.

"Now we face the stiff challenge of building the necessary capacity to match that demand," he said.

THE ANTI-FUN POLICE ARE WATCHING
Should government be in the business of regulating rollerblading and bungee-jumping?  OK, how about hopscotch?

By Jonathan Walters       (Governing  March 3, 1993  p. 23)

As if Big Government didn't have a bad enough reputation, it seems that a growing number of states and localities just don't want some people to have any fun.

Skateboarders are being banned from public plazas. Bungee-jumpers are being grounded.  Whitewater-rafting companies are being scrutinized for tougher regulation, and so are rock-climbing schools. Even rollerbladers are being slapped with fines in some jurisdictions for the transgression of being neither car nor pedestrian, but a legally unacceptable combination of the two.

The curmudgeon capital of the country, though, has to be Charlestown, Indiana. There it is now illegal to play hopscotch, soccer, baseball or basketball in streets, alleys or even on sidewalks.  Scofflaw tykes can be slapped with a $100 fine. There is now provision—yet—for requiring them to finish their vegetables, as well.

What prompted Charlestown's wave of cranky rule making? "There was a group of kids regularly playing basketball in the streets," says Mayor Bob Braswell. "The city attorney said we couldn't discriminate against just them." So the city made its ban as broad as possible.  Braswell hints that the ban will be very selectively policed.

But while that may be the current intention, such ordinances have a way of taking on a life of their own, many years after being passed, points out David Cooper, who monitors government activity affecting rollerbladers for the International In-Line Skating Association.

Rollerbladers have been getting pulled over mostly because of a wave of anti-roller skating laws passed in the 1970s aimed at keeping young kids and their clamp-on skates off the streets and out of harm's way. Cooper argues that rollerbladers are a whole new breed of skater—most of them adults, at that.

Ancient ordinances notwithstanding, there does seem to be some other force at work here. Some insist that government is just doing its job, protecting people from public nuisances and unscrupulous thrill-providers who don't take proper safety precautions. Others fret about what they see as the creeping influence of self-appointed safety types out to protect fun-seekers from themselves.

The extent to which that is a property role for government has long been debated among public officials, of course. In Vermont, bungee-jumping outfits may have to get certified, but if people want to leap, it's their business, thinks Vermont Governor Howard Dean, who, in an interview with the Burlington Free Press, summed up his sentiment on a possible statewide jumping ban.  "You can't outlaw everything that you think is insane. I suppose people have the right to do crazy things."

In Vermont, maybe, but apparently not in that crucible of individual freedom, New Hampshire, where "Live Free or Die" is stamped on every license plate. The state has banned all bungee-jumping from balloons and cranes.  "It's just like regulating restaurants," argues Robert E. Dunn Jr., assistant commissioner of the New Hampshire Department of Safety. "We have to assure the public that it is safe."

That probably is not the best comparison. After all, who goes to McDonald's for a burger and a thrill instead of a burger and a shake? Better would be to cite government's general role in making sure that fly-by-night businesses don't jump into activities where safety is of paramount concern.

So give government the benefit of the doubt on bungee-jumping. But rollerblading?  "[Governments] argue that you have hotdogs taking out old ladies," says the rollerbladers' Cooper. His suggestion is simple and logical: Go after the rogue skaters, just as you would a lousy driver.  Don't broad-brush.

Cooper is confident that rollerbladers will ultimately win the day. "It's because of our demographics. We're not your screw-the-establishment types. We carry our cellular phones when we skate."

MONIQUE IN TANGLES
Wall Street Journal June 18, 1993

Monique Landers is a 15-year-old high school student who already has her own small African hair-braiding business.  That is she did until six weeks ago when the state of Kansas shut her down because she didn't have a cosmetology license.

Monique learned she had to close her business just after she returned from New York, where she had been honored as one of five Outstanding High School Entrepreneurs.  An official at the Kansas Cosmetology Board read about her award and promptly demanded that she desist.

Monique started her business in Wichita last year with the help of the National Foundation for Teaching Entrepreneurship, NFTE was founded in 1987 by Steve Mariotti, a New York City businessman who decided after he was mugged that inner-city youths should be given an alternative to life on the streets.  His program teaches students in 10 cities how to develop a business plan and market a product or service.  A remarkable 84% of graduates report they use the knowledge to earn money for themselves.

Monique started "A Touch of Class," and began braiding and washing the hair of friends and family members.  She made a profit of about $100 a month.

This was too much for the Kansas Cosmetology Board, which warned her it was illegal for her to in any way touch hair for profit without a license.  If she didn't stop, they wrote the youngster, she was subject to "a fine or imprisonment in the county jail or both."

Nancy Shobe, the Board's executive director, says Monique should go to a yearlong cosmetology school if she wants to braid hair.  Monique says few schools even teach braiding, and anyway none will take her until she turns 17. "I need to finish school first," she told us.  "The Board won't let me earn my own money, and won't let kids like me learn how to take care of ourselves."

The Board acted after it received complaints from hair salons and cosmetology schools.  Monique's customers didn't complain. In shutting her down it is doing what licensing boards routinely do: impose right and unreasonable barriers to newcomers who want to enter a business.

Last year, we reported on Taalib-Dan Uqdah, a Washington, DC hair-braider, who was almost shut down because he posed a threat to other salons. John Stossel, a reporter for ABC's "20/20," says his 20 years of consumer reporting have taught him that licensing board "rules can end up hurting more people than they protect."

Monique is one of the victims of those rules. She mainly wants to better herself. One of her brothers has been in jail, and a sister has been expelled from school. "I think owning your own business is a way of being free," she says. "If more kids knew they could grow up to be their own boss they would be more responsible and cause less trouble."

Perhaps Monique has technically violated Kansas's cosmetology statute. If so, it's time it and the licensing laws in other states that regulate 500 occupations, covering 10% of the nation's work force, were overhauled. A valuable program such as NFTE has enough trouble turning at-risk youth around without having to battle petty bureaucrats at the same time.

TAKING A STAND ON REGULATION
By Helen P. Rogers         pp. 80, 81, 82

Humptey - Polls show people are willing to sacrifice for common goals that are judged to be good for today's society and the future.

Dumptey - Judged by whom and using what criteria? I may agree that certain goals, such as safe buildings, adequate water, low density and picturesque surroundings are desirable, but not if the trade-off means keeping citizens weak and dependent on officials for the safety and welfare of themselves and their children and unwilling and unable to take charge of their own lives.

Not if the trade-off means wasting the time and intelligence of men and women who sit in judgment rather than turning their energies and abilities to more productive endeavors.

Not if the trade-off means wasting the time and intelligence of those who must take time away from home, business, trade or profession to fill out forms and appear before numerous hearings and commissions.

Not if the trade-off is a huge and unnecessary expenditure of money for archaeological reports, environmental impact reports, clearances by engineers, architect plans and so on and so forth whether opinions and skills of these professionals are needed or not.  Requirements such as these contribute to high real estate prices, lifting property ownership to heights beyond the average consumer.

Who is the better judge? A detached body of individuals or those who are going to invest their time and money in the project? Who has the most at stake if a project or a product turns out to be safe or dangerous? The potential beneficiaries or the potential victims?

Humptey - On the other hand many communities have greatly benefited from successful growth management.  The atmosphere engendered by good government and civic leadership is what this country is all about. Good managers keep the business of government moving forward efficiently and effectively.

Dumptey - That may be in specific instances and who is not for good, efficient, effective government? I certainly am not against all forms of government, and I might well agree that where community interest, rather than narrow parochial concerns are represented, everyone benefits. But more often than not boards, supervisors, commissions and what have you, operate in an arbitrary and inconsistent manner keeping citizens on their toes and fearful. People can be productive only if they can be certain that the rules will not be changed and the carpet won't be pulled out from under them. The existence of consistent plans lets everyone know the rules of the game and what is expected and then manufacturers, builders, investors can all confidently and positively. The fewer the rules and regulations the easier it is to instill this necessary feeling of certainty.

Humptey - But the whole point of planning commissions and master plans is to look ahead and prevent damage.

Dumptey - I think communities have given too much power to planning departments and other representative groups in recent years. It's gotten to the point where these not-necessarily-qualified-for-anything-in-particular citizen groups dispense their yeas or nays in a kingly manner, breathing life or death into projects while fellow citizens, for the most part, acquiesce like good subjects.

I understand that many people believe planning is an improvement over a free market, but I don't for a moment think that is true. For one thing the trade-offs (loss of freedom and productivity) are too great to be considered an improvement in my estimation. We are reverting to a static time in history when scarcity was rampant and it was commonplace to ask "May I please be grated the ability to do what I desire with my property?" What else are permits? There has been a very real failure both to define and uphold property rights. A lot of our problems are caused by the absence of the principles of property rights, free markets and individual accountability.

Humptey - You must admit the success of intervention depends on the branch of government that does the intervening.

Dumptey - I might agree, especially when one branch of government overrules another. For example the Hyatt Corp. spent eleven years to get approval to build a 400 room hotel on a one-time oil field a few miles north of Santa Barbara. The process included 1,000 pages of environmental analysis and public consideration of alternative sites for the hotel. Local activists wanted studies of locations that didn't have zoning for visitor use or weren't even owned by Hyatt—any ploy to stop the company. Thank goodness the California Supreme Court found the procedure ridiculous. It said "Rules regulating the protection of the environment must not be subverted into an instrument for the oppression and delay of social, economic or recreational development and advancement." I say bravo!

Humptey - I don't consider courts government intervention. How about an example of societal good resulting from laws and regulations—from legislative entities?

Dumptey - I've got those too. At the end of 1990 the San Francisco Board of Supervisors passed a resolution which has got to be considered big time intervention; in fact, it amounts to mammoth micromanaging of the workplace. In an attempt to alleviate straining and neck injuries by employees, the new law would mandate the type, size and height of chairs and video displays for workers in every business with more than 15 employees. These publicly elected supervisors have decided that employees of private companies must have a fifteen minute break every two hours. Would you call this a social good? I would call it a misuse and inexcusable expansion of power. How will the resolution be enforced? It brings the promise of more law suits and adds one more disincentive to employment.

Humptey - I take it you are against supervision by all kinds of boards, commissions, or committees. Many people don't like micromanagement by the federal government, but you seem to be against almost any regulation.

Dumptey - Even excessive regulation by kings. Let me tell you a story:

When Louis XIV was king of France he tried his hand at micromanagement. He managed to bring the entire French economy almost to a standstill. The textile industry was in a shambles as weavers waited for permission to weave their cloth. The regulations concerning that one industry filled a book more than 3,000 pages long. The weavers of Saint-Maxixent negotiated with the government for four years in order to gain permission to use black warp. When the permission finally came it did them no good because they were never able to get permission to use black woof and it takes "two to weave"—two threads, that is.

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