Rena Steinzor on CPRBlog {Bio}
[ Prev ] [ Next ]

Refinery Rule Returned to EPA for Additional 'Analysis': How Big Oil, OIRA, and the SBA Office of Advocacy Teamed Up to Delay Progress

On Friday, the White House Office of Information and Regulatory Affairs (OIRA) returned a proposed rule on air pollution standards for oil refineries to EPA, insisting that the agency complete “additional analysis” before moving forward. EPA’s efforts to reduce hazardous pollutants from these facilities will be delayed for months or likely years.  And that additional analysis?  OIRA won’t even say what it’s for.  “Trust us” is not the most reassuring government transparency. 

EPA was proposing to revise the emissions standards for hazardous air pollutants from oil refineries, incorporating the results of a “risk and technology review,” which is used to determine whether additional reductions are warranted in light of the remaining risks to human health that the facilities present and the technology now available to lower their harmful emissions. The proposal would also amend new source performance standards (NSPS) for a number of other pollutants from these facilities. The various pollutants emitted from the nation’s 150 oil refineries can cause cancer, severe respiratory problems, and a range of cardiovascular, skin, blood, and neurological disorders. Because EPA’s proposal has been returned to the agency instead of released to the public, we do not know by how much EPA expected to reduce emissions of these harmful pollutants or how large the resulting health benefits would be.

The current emissions standards for hazardous air pollutants from oil refineries were issued in 1995 and 2002, each one covering different sources of pollution. Under the Clean Air Act, EPA is required to review these standards within eight years of setting them, so this rulemaking is actually many years overdue. The agency has been under a court-approved settlement to propose this rule by December 15, 2011, and it is more than a year past that deadline as well. After conducting an extensive survey of all the refineries in the nation, EPA submitted its proposal to OIRA on September 4, 2012, already nine months late but also during the election season. OIRA then held onto it for more than six months—much longer than the 90 days (with one 30-day extension) permitted by Executive Order 12866—only to tell the agency on Friday that it needs to provide even more information.

Full text

It's Past Time to Appoint an OIRA Administrator

It has now been nearly seven months since Cass Sunstein left his job as Administrator of the White House Office of Information and Regulatory Affairs (OIRA). Much has happened in that time, most significantly an election that returned President Obama to the White House, but also a growing recognition that whatever second-term accomplishments the President is able to register on climate change and a number of other issues are likely to be brought about through regulation, not legislation. That's precisely why it's important to fill Sunstein's job with someone who'll help regulatory agencies accomplish their important work.

Unfortunately, the President has yet to nominate a successor. As a result, Sunstein's temporary replacement, Boris Bershteyn, will reach a milestone in just a few days: Under the law, his time as Acting Administrator is up. It would shock no one if the White House did nothing more than strip him of the "Acting Administrator" designation. That's what it did with Jeffrey Zients, who timed out of the role of Acting Administrator of the Office of Management and Budget, and is now described as the person who "leads" OMB. (This morning, Sylvia Mathews Burwell was nominated to be OMB Director, along with Gina McCarthy for EPA Administrator and Ernest Moniz for Energy Secretary).

But that's a lousy way to run OIRA, particularly now, when it is sitting on a bunch of crucial safeguards and is in desperate need of new direction.

From all outward appearances, little at OIRA has changed under Bershteyn’s nearly seven-month leadership, and that’s bad news for the public. As I write, more than 60 proposed or final rules from agencies have been stuck at OIRA for longer than the 120 days permitted under Executive Order 12866, which allows for a 90-day review with a possible 30-day extension. Among the stalled rules:

  • A National Highway Traffic Safety Administration (NHTSA) final rule to require “back-up” cameras on cars. About 100 people – many children – die every year in backup incidents; Congress passed a law in 2008 requiring NHTSA to issue a rule to address the problem. OIRA has held the rule for more than a year; it is beyond the legal deadline set by Congress.
  • An FDA rule requiring food importers to verify that their products were produced under conditions that comply with the agency’s food safety requirements. The rule was required under the Food Safety Modernization Act, signed by President Obama in January of 2011. OIRA has held the rule for more than a year; it is beyond the legal deadline set by Congress.
  • An Occupational Safety and Health Administration (OSHA) proposed rule to limit worker exposure to silica, which sickens thousands and kills dozens each year. OIRA has held the rule for more than two years.
Full text

Administration Warns of Food Inspectors Being Furloughed From Budget Sequester -- But Moving Forward Separate Plan to Unilaterally Take Poultry Inspectors Off the Job

This post was written by CPR President Rena Steinzor and Media Manager Ben Somberg.

The White House issued a fact sheet last Friday presenting “Examples of How the Sequester Would Impact Middle Class Families, Jobs and Economic Security.” The consequences of the impending budget cuts from the “sequester” are not some abstract problem; they’re serious dangers, like this one:

The Food and Drug Administration (FDA) could conduct 2,100 fewer inspections at domestic and foreign facilities that manufacture food products while USDA’s Food Safety and Inspection Service (FSIS) may have to furlough all employees for approximately two weeks. These reductions could increase the number and severity of safety incidents, and the public could suffer more foodborne illness, such as the recent salmonella in peanut butter outbreak and the E. coli illnesses linked to organic spinach, as well as cost the food and agriculture sector millions of dollars in lost production volume.

We applaud the White House for explaining to the public the importance of our food safety system.

But here’s the irony: the Administration is simultaneously moving forward with a separate plan that would weaken the food inspection system in the area of poultry processing. The USDA issued a proposed rule in January of last year that will take many federal food inspectors off the poultry lines, replacing their work in part with less-trained company inspectors, and the agency is on the verge of sending the final version to the White House for approval.

Full text

Moving Forward on Public Health and Safety with Just the Stroke of the Pen? Yes, Obama Can

After the last of the applause lines has been delivered, and while the crowd that gathered for his historic second inauguration is still filing out of town, President Obama will once again sit at his desk in the Oval Office and begin the tough policy work that will define his second term in office and shape the legacy he will leave behind.

Among the many challenges he'll face over the next four years will be an urgent agenda of addressing critical threats to public health, safety, and the environment that the Administration let languish during the first term. But good luck to him if he decides to attack the problems with legislation. The election made the numbers in both chambers of Congress somewhat more favorable to the President's cause. But it'd take an earth-shattering event or at least another election to get protective legislation out of the House of Representatives, which vacillates between being sullen and defiant and will undoubtedly return to its anti-regulatory drum-beating as soon as the fiscal “crisis” is over.

So what's a President to do? Use every bit of executive power he can marshal, in this case, by directing the regulatory agencies to move with dispatch to regulate and enforce in a number of vital areas. In Protecting People and the Environment by the Stroke of a Presidential Pen: Seven New Executive Orders for President Obama’s Second Term, released today, my colleagues and I at the Center for Progressive Reform explain how the President can take the first vital step by making full use of his authority to manage executive agencies—including the Environmental Protection Agency, the Food and Drug Administration and the Occupational Safety and Health Administration—by issuing a series of Executive Orders.

The Orders recommended in the CPR Issue Alert would address several pressing health, safety, and environmental challenges:

  • Climate change mitigation and adaptation;
  • Dangerous food, drug, and consumer product imports;
  • Threats to the health and safety of children and future generations; and
  • Hazardous working conditions for “contingent workers” (i.e., a growing portion of the U.S. labor force that encompasses workers who are not employed on any kind of long-term contractual basis).
Full text

Too Big to Obey: Whether BP Is De-barred Up to DOD and (Hopefully) the White House

For a potentially earth-shattering move against one of the most notorious corporate environmental scofflaws in history, the Environmental Protection Agency (EPA) sure hid its light under a bushel this morning. The agency’s scant three-paragraph press release announced simply: “BP Temporarily Suspended from New Contracts with the Federal Government,” adding that “EPA is taking this action due to BP’s lack of business integrity as demonstrated by the company’s conduct with regard to the Deepwater Horizon blowout, oil spill and response.” As the headline suggests, the temporary suspension applies to new, but not existing, contracts with the government.

Don’t get me wrong, EPA’s move was in its own way a profile in courage for an agency that too often walks around with a target on its back, taking unwarranted hits from both its known foes—House Republicans—and from people who should be on its side—White House staff, and occasionally from other agencies and departments—like the Pentagon, or the Small Business Administration's Office of Advocacy. The question is whether the little release was an exercise in mere bravado or whether it will deliver real results.

As reporters hustled to interpret the cryptic release, the Interior Department confirmed that BP would be barred from winning any new federal oil leases. Unfortunately, BP just finished winning a slew of new leases in June, making it the largest leaseholder in the Gulf. The new leases are located in the same region of the Gulf as the Macondo well, the one that exploded in April 2010, killing 11 destroying the $350 million Deepwater Horizon drilling rig, fouling the Gulf of Mexico and hobbling the regional economy of the Gulf Coast. As the rig’s name suggests, oil lies deep below the surface out there, representing plenty of hazards to be navigated by a company that, according to EPA's careful review of ample evidence, lacks integrity.

Full text

The Nuclear Option: Debar BP, End $2 Billion Fuel Sales Now

This post is based on an article I wrote with Anne Havemann entitled “Too Big to Obey: Why BP Should Be Debarred,” published in the William & Mary Environmental Law & Policy Review.

Attorney General Eric Holder and his lead prosecutor, Lanny Breuer, are deservedly running a victory lap in the immediate aftermath of their criminal settlement with BP.  The amount of money paid to settle the charges, $4.5 billion—is considerably larger than anything paid by past bad actors, although it represents just a few months of profit for the company.  In addition, the two top supervisors on duty at the rig when it exploded will be prosecuted for manslaughter, sending the message that line managers put their futures on the line when they worry more about sparing costs for the company than the safety of their workers.   But even these tough remedies fall far short of the “nuclear option” that should be invoked in this case: the permanent debarment of BP from ever doing business with the U.S. government.

Despite a shocking history of chronic law violations stretching a couple decades in this country—including an explosion at its Texas City refinery in 2005 that killed 15 workers--BP remains the Pentagon’s largest supplier of jet and vehicle fuel, with government contracts valued at more than $2 billion.  In theory, at least, the United States only does business with “responsible” companies and, as I’ll explain further in a moment, BP is the corporate embodiment of irresponsibility, even if we ignore the catastrophe that happened in the Gulf.  Yet any suggestion that the company should be debarred by the Department of Defense (DOD)--the government’s biggest spender--is summarily dismissed by observers who seem convinced that debarring BP would leave the Pentagon with nobody to sell it fuel.  

Some statutes, including the Clean Air and Clean Water Acts, provide for immediate suspension for government contractors found guilty of violating their provisions.  Unfortunately, however, the suspension is only applicable to the facility where the violation took place.  The drilling rig that exploded is obviously no longer in existence.  

Full text

Help Wanted: Regulatory Czar with Commitment to Protecting Public Health, Worker and Consumer Safety, and the Environment

Judging from President Obama’s first term, the job of White House “regulatory czar” could prove of out-sized importance these next four years, with the head of an office few know exists ending up with the power to trump the authority of Cabinet members throughout the government.  Cass Sunstein, the former occupant of the position, was perhaps the most influential overseer of the regulatory process ever, and it's not hard to imagine that his replacement will be equally powerful.  But I'd propose that the next Administrator of the Office of Information and Regulatory Affairs (OIRA) have a very different job description.

Sunstein made himself a strong ally of business, doing his best to put the President in a position where he could withstand attacks by his Republican opponent for being tuned out to the needs of the “job creators.”  This strategy did not work particularly well.  President Obama was subject to withering attacks from big business and its political allies, and won reelection in the end by explaining himself as a populist concerned about the middle class.  For this reason, and because the recent crisis over compounding pharmacies reminds us how badly regulatory agencies need to be strengthened, I'd urge the President to appoint a czar who will work to make sure that regulation and its enforcement are as effective as they are efficient from an economic perspective.  I hope, in other words, that the President listens to his own campaign rhetoric and picks someone who can lead OIRA to develop a reoriented regulatory mission, one based on a positive vision for protecting the public.

For three decades, OIRA Administrators have described their task as one of number-crunching and economics, making it sound as if they're just adding up regulations' projected costs and benefits and seeing which side of the equation wins because it is objectively bigger.  But their unwritten, self-defined mission is quite different. They have seen their task as standing guard on federal agencies to make sure they don’t upset industries too much, serving as a court of last resort for big business, and sparing the President from political damages. This role has not served anyone particularly well – except for industry.

But there's no law that says this is how OIRA should function; it's a habit that has grown up over the years.  President Obama's next OIRA Administrator needs to see outside that shortsighted lens.  In his 2008 acceptance speech at the Democratic convention, President Obama said that government should “protect us from harm and provide every child a decent education; keep our water clean and our toys safe.” That's the mission that the next OIRA Administration needs to make his or her own.

Full text

Obama 2.0: Looking Forward, Mindful of the Past

President Obama’s reelection holds the possibility of great progress for public health, safety, and the environment — if, and only if, he recognizes the importance of these issues and stops trying to placate his most implacable opponents.

The weeks leading up to the election brought powerful reminders of two of the challenges at hand:  rising sea levels and more severe storms that scientists say we should expect as a result of unchecked climate change, and a meningitis outbreak that sickened hundreds, thanks to an obscure compounding pharmacy that escaped regulators’ reach. And let’s not forget that we are recovering from an economic downturn in which under-regulation of giant financial institutions played no small part. This is the context, the starting point.

Taking a progressive stance on health, safety, and environmental threats has never been easy politically because the industries most affected by these protections have powerful allies in Washington, a small army of lobbyists, and plenty of money to contribute to politicians who support their opposition to regulation.  So if the President chooses to take the lead on air and water pollution, food and drug safety, and dangerous conditions in the workplace, for example, he will face extraordinary pressure to do the wrong thing.  And, sadly, he did not cover himself with glory during his first term in this area.  Particularly as the campaign drew closer, the President tried to burnish his business-friendly credentials at the expense of needed protections.  Now he has four more years to leave a legacy of leadership on these vital, life-and-death issues.

The stark choices are perhaps best exemplified by climate change.  One path is tragically easy, the other extremely hard. The easy path is to only poke at the edges of greenhouse gas emissions reduction. The hard path is to take aggressive action, using the full powers of the Clean Air Act, to put the country on the path to dramatically reduced greenhouse gas emissions. In not so many years, this choice will be looked back on as one of the key measures of the President’s legacy.  Without any question, history will condemn inaction in no uncertain terms.  But a strong legacy will not depend just on climate. If the President does not act to make government protections stronger and more effective, we will face more tragedies, from fatal foodborne illness to refinery explosions to oil spills that kill people and cost billions.

Full text

Obama Event Monday Honoring Farmworkers Comes Just Months After Administration Jettisoned Key Farmworker Safety Rule

President Obama travels to Keene, California, on Monday to designate the home of César E. Chávez as a national monument—a worthy honor for a key figure in the ongoing push for safe working conditions and fair pay. One thing the President is unlikely to raise in his remarks is that just a few months ago, his administration took the side of big agriculture against the safety of farmworkers.

In April, White House staff jettisoned a key Department of Labor (DOL) proposal establishing safety protections for young agricultural workers – teenagers working in very dangerous jobs.

That’s rather important context going into Monday’s event.  The White House’s press release rightly notes that “Chávez played a central role in achieving basic worker protections for hundreds of thousands of farmworkers across the country, from provisions ensuring drinking water was provided to workers in the fields, to steps that helped limit workers’ exposure to dangerous pesticides, to helping to establish basic minimum wages and health care access for farm workers.”

The Administration has recognized the danger of this work before, and the DOL proposal would have updated 40-year-old “hazardous orders” designed to protect hired children. Last year, announcing the proposed changes, Secretary of Labor Hilda Solis said: "Children employed in agriculture are some of the most vulnerable workers in America.” And: “Ensuring their welfare is a priority of the department, and this proposal is another element of our comprehensive approach."

Full text

New Paper: How Chemicals Manufacturers Seek to Co-opt Their Regulators

This post was written by CPR President Rena Steinzor and Policy Analyst Wayland Radin.

Today CPR releases Cozying Up: How the Manufacturers of Toxic Chemicals Seek to Co-opt Their Regulatorsexposing the work of the International Life Sciences Institute (ILSI) and Toxicology Excellence for Risk Assessment (TERA), two industry advocacy groups that have undue influence on the regulation of toxic chemicals.  The two firms specialize in a particularly insidious brand of “dirty” science by recruiting EPA experts to co-author papers and participate in policy-making workshops that are heavily biased toward manufacturer interests. 

Americans might reasonably assume that toxic chemicals undergo rigorous, independent testing before they enter the stream of commerce. Regular readers know that’s hardly the case. The Toxic Substances Control Act (TSCA) grandfathered in tens of thousands of chemicals already in use, and new chemicals undergo only a perfunctory, 90-day “pre-manufacture review” by the EPA, which under even the best circumstances must rely on a comparison of the chemical structure of the new chemical to the structures of existing chemicals and whatever information the manufacturer has chosen to submit regarding the chemical. Because research by a chemical’s producer is often the primary resource available to regulators who make crucial public health decisions, independent experts have examined whether industry-sponsored studies produce different results than comparable government-funded work. An empirical review of 1,140 biomedical studies determined that "industry-sponsored studies were significantly more likely to reach conclusions that were favorable to the sponsor than were non-industry studies." Concerned by these findings, but unwilling to reject industry-sponsored science out of hand, the world’s most prestigious scientific journals require authors to disclose the source of their work so that potential biases are evident to readers.

Full text