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NEWS FLASH

Greenhouse Pollution Rule Stalled Past Deadline By Cass Sunstein | The Greenhouse Gas New Source Performance Standard for Electric Generating Units for New Sources has now been at the White House Office of Information and Regulatory Affairs for 120 days – the maximum allowed by executive order. OIRA head Cass Sunstein’s reign has been marked by friendliness to polluter lobbyists and opposition to regulations that enforce the law for public health and safety. OIRA currently has 30 different final or proposed rules in its grasp for 120 days or more, the Center for Progressive Reform reports — Chemicals of Concern easily leads the pack, at 664 days in limbo.

Climate Progress

Frank O’Donnell: Cass Sunstein’s Appalling Anti-Regulatory Reign

Our guest blogger is Frank O’Donnell, president of Clean Air Watch.

President Obama and OIRA head Cass Sunstein

I don’t take pleasure in saying “I told you so.”

In this case, I am especially pained to say my predictions about President Obama’s “regulatory czar” Cass Sunstein have borne out.

You may recall the background: in 2009, President Obama nominated his old friend, Harvard Law School Professor Sunstein, to run the White House Office of Management and Budget’s Office of Information and Regulatory Affairs, an office little known outside the Beltway but one with enormous power. It is, in effect, the gatekeeper over all major rules issued by agencies such as the Environmental Protection Agency

In his prior life as an academic, Sunstein had raised serious questions about environmental requirements. He had urged, for example, changing the Clean Air Act to require that national clean air standards pass a cost-benefit test – a change in the law long sought by big corporate polluters who understood this meant a weakening of the law in the real world. (National clean air standards today are supposed to be based only on science so the public can know if the air is actually safe to breathe.)

I noted that had a Republican president nominated someone with similar views, public interest groups (and Democrats) would be screaming. But progressives and most Democrats basically gave Sunstein a pass.

His nomination was approved on a 57-40 vote. Once approved, Sunstein has generally worked in the office’s typical obscurity. Following his advice, the president issued an executive order demanding that agencies review existing regulations. This was generally viewed as a political concession to anti-governments groups such as the U.S. Chamber of Commerce.

In perhaps his best-publicized activity, as the New York Times recently reported, Sunstein joined forces with then-White House Chief of Staff Bill Daley to torpedo the EPA’s attempt to update national clean air standards for smog. Sunstein basically imposed his own illegal cost-benefit ideology on the decision. As a result, many millions of Americans will be breathing dirty air longer. To compound a bad decision, he then lied about it, claiming politics was not a factor.

If anyone thought this was an isolated incident, I suggest you read a provocative new report by the Center for Progressive Reform. It is the most thorough analysis I have ever seen of Sunstein’s office, and the results are pretty appalling. It documents in great detail how big business groups are using Sunstein as a tool to weaken health and safety standards. It has also become a tool of the administration’s foolish political efforts to mollify the business lobbies.

During a six-month period, Sunstein’s office literally met with nearly 6,000 lobbyists, 65 percent of whom represented industry, compared to only 12 percent representing public interest groups. In a shocking discovery, the analysis found that Sunstein’s office changed more rules than it did under the prior Bush administration!

The analysis notes that EPA rules were singled out for special review and change and that Sunstein’s office frequently ignores public disclosure requirements.

The report ends with a call for reform that it not likely to happen anytime soon. Indeed, even as I write, Sunstein’s office has become the conduit for meetings with dirty electric power companies who are seeking to weaken and include new loopholes in upcoming EPA standards aimed at cutting mercury and other life-shortening toxics from coal-fired power plants.

Will Sunstein strike again, as he did in the ozone decision?

NEWS FLASH

‘The Lung Thing’: How Cass Sunstein And Bill Daley Convinced Obama To Let 7,200 Americans Die Every Year | A scathing investigation by the New York Times’ John Broder finds that White House Chief of Staff Bill Daley and Office of Information and Regulatory Affairs chief Cass Sunstein were the instrumental figures in killing stronger smog standards that would have saved 7,200 lives a year. Daley’s arguments that convinced Obama to reject EPA Administrator Lisa Jackson’s attempts to clean up Bush-era corruption were “straight out of the industry playbook,” Broder writes. Jackson “talked about how important it was to do this, the lung thing, the asthma thing, the kids’ health thing,” U.S. Chamber of Commerce lobbyist Bruce Josten complained to the Times. “This decision was made on the merits and not on politics,” Sunstein says.

Climate Progress

Obama’s OMB Continues Bush-Era Interference With Public Health Standards

Update: In an interview with the Wonk Room, EPA official Gina McCarthy argues that OMB’s involvement helped strengthen the final standard.

The Obama White House interfered with smog standards at the last minute, preventing the Environmental Protection Agency from properly protecting the health of millions of Americans. The White House’s Office of Management and Budget (OMB) and its subsidiary Office of Information and Regulatory Affairs (OIRA), led by Obama pick Cass Sunstein, oversees regulatory decisions by federal agencies. “The EPA issued a new rule recently on nitrogen dioxide (NO2),” Center for Progressive Reform president Rena Steinzor writes, “but not before it was weakened by OMB. The consequences for the public health are real.” On December 18, the EPA had proposed installing new monitoring stations at all cities with a population of 350,000 or more, but by “the time OIRA completed its review on January 22, the minimum threshold for monitoring stations had been increased to one per 500,000 people.” The Center for Progressive Reform discovered an email from a top EPA official that reveals the agency opposed the White House interference:

The EPA had made its position clear, it turns out. In a January 20th email about the “500,000″ proposal, Lisa Heinzerling, the EPA’s Associate Administrator for policy, wrote, “EPA does not support the alternative threshold described in the email below.”

The new standards “will improve air quality, particularly in communities disproportionately impacted by environmental problems.” However, the last-minute interference unnecessarily leaves millions without the same protection. As Matthew Madia relates at OMB Watch, there was no justification offered for the loosening of the standards:

The final rule claims the threshold was raised “after consideration of public comments,” but EPA provides no evidence that the public opposed the lower threshold. The Clean Air Council asked for an even lower threshold, possibly down to 100,000 people, according to a recap of comments in the final rule. Even Dow Chemical Company, which was pushing for a weaker one-hour standard, called the 350,000 person threshold “reasonable.”

When Cass Sunstein was nominated by Obama to run OIRA, environmental watchdogs raised significant concerns that he may share his predecessors’ antiregulatory zeal.

Ironically, Lisa Heinzerling, a law professor, was one of the sharpest critics of Bush White House interference with environmental rules. When the Bush administration wrote a rule to block the Endangered Species Act from addressing the threat of climate change, she said “rule turns the pit bull into a poodle.” Under Ken Salazar, the Obama Department of the Interior has continued to embrace Bush’s “poodle” rule.

Media

Beck Capture

367px-Glenn_Beck_Book_Tour_cropped 1 1

Dave Weigel had an interesting post this morning about the problems a political movement runs into when it lets itself be led by charlatan media personalities:

The Democrats are in worse political shape than they were a year ago because unemployment is at 9.8 percent, the war in Afghanistan has grown less popular, and the bailouts of struggling banks are seen as wastes of money that haven’t worked. Republicans benefit when they talk about this stuff. But Beck and the others don’t let them talk about this stuff. For the past few months, they have moved the discussion onto fantasy terrain, accusing the president of reaching for dictatorial powers and surrounding himself with “radicals” who want to destroy capitalism. [...]

And remember, one of the huge political mistakes of 2005 was the Republican decision to do a full-court press on an issue that had come from conservative activists and pundits: the fate of Terri Schiavo.

You can see some of this at work in the very interesting GQR report on “The Very Separate World of Conservative Republicans”. Basically they contrast the worldview of self-identified conservative Republicans with that of Obama-skeptical people who don’t self-identify in this way. To cast the distinction in broad terms, the Obama-skeptics worry that Obama is failing—that his efforts to create jobs aren’t working, that his reforms of the health care system won’t improve access to quality care, etc.—whereas the conservative Republicans worry that he’ll succeed. They believe, à la Beck, that the Obama administration is pursuing a secret agenda aimed at the deliberate destruction of the United States. Focusing on this rather outlandish claim makes it difficult to get in touch with the more banal worries of the marginal voter.

The overarching problem, I think, is that while it may be tactically helpful to have allies in the media who’ll lie about your enemies, it’s a big problem when you start believing too many of the lies. Beck and others on the right have, for example, convinced a lot of people that Cass Sunstein is a dangerous wild-eyed in a way that will make it difficult for the Obama administration to elevate him to any higher positions. Given that Sunstein is, in fact, actually pretty conservative for a Democrat and also a plausible Supreme Court justice this campaign has been, objectively speaking, a victory for the left.

Yglesias

Smearing Cass Sunstein

Cass Sunstein is a brilliant progressive lawyer whose views on regulation are, if anything, somewhat more conservative than those of most Democrats. He’s friendly to cost-benefit analysis, and a proponent of the idea that public policy should try to “nudge” people as an alternative to more heavy-handed intervention. Barack Obama has nominated him to head up the Office of Information and Regulatory Affairs where that’s what he’ll be working on.

Naturally, elements on the right have embarked on a dishonest smear campaign. Julian Sanchez has the details.

Economy

A Close Look At Cass Sunstein’s Take on Cost-Benefit Regulation

Our guest blogger is Chris Mooney, contributing editor to Science Progress and author of several books, including The Republican War on Science and the forthcoming Unscientific America: How Scientific Illiteracy Threatens Our Future, co-authored by Sheril Kirshenbaum.

Cass Sunstein

Working out precisely how to feel about the president-elect’s proposed head of the Office of Information and Regulatory Affairs in the White House Office of Management and Budget, or OIRA is a bit tricky. Harvard law professor Cass Sunstein is a prolific scholar, but a central focus of his research has been on ways of making the government regulatory process more efficient and effective — and this has included the embrace of so-called “cost benefit analysis,” which many environmental advocates accuse of being a rigged methodology that always seems to favor doing less for public health and the environment.

For a long time, OIRA has been seen as the place where regulations go to die, and cost-benefit analysis — in combination with improper second-guessing of scientific research produced by expert agencies — as the chief executioner. Bush’s controversial first OIRA director, John Graham, was a strong cost-benefit proponent, and at least for some, Sunstein sounds uncomfortably close to him in outlook. Rena Steinzor, the president of the Center for Progressive Reform, warned about Sunstein’s selection:

The appointment means that those of us expecting a revival of the protector agencies — EPA, FDA, OSHA, CPSC, and NHTSA — have reason to worry that “yes, we can” will become “no, we won’t.”

Balanced against such concerns, however, is the fact that Sunstein believes cost-benefit analysis is a flawed but nevertheless useful methodology, leading to a better chance, over all, of making the wisest decisions in a context that always requires some balancing of competing values.

Still, in Sunstein’s writings there’s a troubling sense of what might be called, for lack of a better word, elitism. For example, Sunstein wrote in Risk and Reason, “when ordinary people disagree with experts, it is often because ordinary people are confused.” Sunstein even admits in the book that his approach is “highly technocratic.”

The problem is we also have very strong reasons to be very skeptical of so-called “experts” on science and risk. Anyone who has peered into these sorts of debates closely — over, say, the herbicide atrazine or arsenic in drinking water — knows not only that the issues are exceedingly complex but also that there is a lot of distortion of science by “experts” who are really ideological allies of special interests. If the choice is between such experts and the public, I’ll take the public every time.

Perhaps, then, the issue is not cost-benefit analysis itself, but what form of it you practice. One cost-benefit proponent, OSH whistleblower Adam Finkel, has himself written that Sunstein has “managed to sketch out a brand of QRA [quantitative risk analysis] that may actually be less scientific, and more divisive, than no analysis at all.” Finkel’s take on Sunstein is worth quoting at length, because it captures not only the complexity of the issues involved but also the great divergence of “experts” on risk assessment itself, and where Sunstein stands on the spectrum:

I actually do understand Sunstein’s frustration with the center of gravity of public opinion in some of these areas. Having worked on health hazards in the general environment and in the nation’s workplaces, I devoutly wish that more laypeople (and more experts) could muster more concern about parts per thousand in the latter arena than parts per billion of the same substances in the former. But I worry that condescension is at best a poor strategy to begin a dialogue about risk management, and hope that expertise would aspire to more than proclaiming the “right” perspective and badgering people into accepting it. Instead, emphasizing the variations in expertise and orientation among experts could actually advance Sunstein’s stated goal of promoting a “cost-benefit state,” as it would force those who denounce all risk and cost-benefit analysis to focus their sweeping indictments where they belong.

Let’s hope we hear at Sunstein’s confirmation hearing that he rejects the idea that his office should be in the business of questioning the scientific determinations made by expert agencies like the EPA; that he plans to use cost-benefit analysis to improve regulation, not stifle it; and that he’ll show some serious skepticism towards many of the “experts” who tout “science” in these areas, and not just towards the allegedly irrational public.

Read more at Science Progress.

Economy

How Anti-Regulation Is Obama’s New Regulatory Czar?

Our guest blogger is Frank O’Donnell, president of Clean Air Watch.

Cass Sunstein
Cass Sunstein

How would progressives respond if President Bush nominated as “regulatory czar” a person who:

– Once called for changing the Clean Air Act to require a balancing of costs and benefits in setting national clean air standards – a fundamental weakening long sought by big polluters who believe it would help them resist cleanup;

– Urged the federal government to devalue senior citizens in calculating the benefits of federal regulations because “A program that saves young people produces more welfare than one that saves old people.” This is a concept dubbed the “senior death discount,” and that environmentalists forced EPA Administrator Christie Todd Whitman to renounce in 2003;

– Argued that it “might be better” to help future generations deal with global warming by “including approaches that make posterity richer and better able to adapt” than by “reducing emissions.”

– Even raised questions about the value of cleaning up Love Canal, reducing arsenic in drinking water and using child restraints in automobiles?

Progressives would’ve screamed, of course. But what will they do now that President-elect Obama appears poised to nominate Harvard Law School Professor Cass Sunstein to head the White House Office of Management and Budget’s Office of Information and Regulatory Affairs (OIRA)? For it’s actually Sunstein who has articulated the views noted above regarding clean air and the other issues involving costs, benefits and risk.

When President Bush nominated someone with similar anti-regulatory views, John Graham, to head OIRA, progressives and environmentalists strongly opposed his nomination.

Thirty-seven progressives, led by Senator Dick Durbin (D-IL) and including Harry Reid (D-NV), unsuccessfully opposed the nomination of Graham, who was also opposed by the League of Conservation Voters because Graham “has a perspective on the use of risk assessment and cost-benefit analysis that would greatly jeopardize the future of regulatory policies meant to protect average Americans. He advocates an analytical framework that systematically reinforces the worst tendencies of cost-benefit analysis to understate benefits and overstate costs.”

LCV even deemed the vote on the Graham nomination one of the eight most critical environmental votes of 2001.

The OMB position is obscure to people outside the Beltway, but it wields enormous power. The office oversees regulations throughout the government, from the Environmental Protection Agency to the Occupational Safety and Health Administration. Draft rules must be approved by OIRA before promulgation. Under Bush, OIRA often used its power to reduce the size and scope of the safeguards to reduce compliance costs to companies causing the health or safety threat. And the Sunstein choice is raising some eyebrows among those wonks who closely scrutinize federal regulatory policy. Robert Shull, former director of regulatory policy at OMB Watch, told E&E News:

It’s difficult to square the choice of an anti-regulatory scholar for the chief regulatory officer with Obama’s many, many promises for a new direction and moving forward from eight years of anti-regulatory, deregulatory misbehavior.

It’s unfair, of course, to paint the 54-year-old Sunstein as a complete clone of Graham and the other Bush anti-regulatory zealots. Indeed, Sunstein has earned a reputation as a genuine progressive on some issues, arguing in 2004 for the implementation of a “Second Bill of Rights” promoted in January 1944 by Franklin D. Roosevelt, to guarantee the “right of every American to a job, a home, and medical care.”

But as co-chair of the American Enterprise Institute Center for Regulatory and Market Studies advisory board, Sunstein works for one of the nation’s most influential right-wing corporate anti-regulatory think tanks. In an interview last year with the Wall Street Journal, Sunstein said of Obama, “He’s a University of Chicago Democrat, so he’s very attuned to the virtue of free markets and the risks of free-market regulation. He’s not an old-style Democrat who’s excited about regulations for their own sake.”

Sunstein will likely be confirmed by the Senate. After all, he is a long-time friend of the President-elect from their faculty days at the University of Chicago law school. Even so, it would seem vital for senators to quiz Sunstein closely at upcoming confirmation hearings and meetings. Does he still hold those views on pollution and risk? (And could he become part of a White House faction — along with Larry Summers, incoming director of the National Economic Council, and incoming national security adviser James Jones — opposing aggressive action on global warming?)

He shouldn’t get a pass just because he was nominated by Obama.

Yglesias

More On Sunstein

Cass Sunstein, the new OIRA chief, hasn’t always been a blogospheric favorite because he’s generally taken a soft line on a lot of Bush-era abuse of power issues. But of course that’s well outside the scope of OIRA’s ambit. And as this very interesting blog post argues, his recent work in the area of behavior economics suggests a real interest in bringing a new theoretical framework to the government’s regulatory work — one that’s informed by rigorous economic analysis but not slavishly adherent to free market dogma.

Meanwhile, an interesting subplot here is that Sunstein’s wife is Samantha Power. Ever since she left the Obama campaign as a result of “monstergate,” I’ve gotten sporadic inquiries from people as to her status vis-à-vis a potential Obama administration. My understanding of the situation has long been that she wasn’t seeking a formal job and every indication we’ve thus far seen from the transition is that she won’t have one. But one can still provide advice on issues without being a formal adviser, and her husband’s appointment suggests she’ll probably be moving to Washington.

Yglesias

Cass Sunstein to OIR

sunstein.gif

More appointments:

The president-elect is expected to name [Cass] Sunstein—his friend and informal adviser—to head the Office of Information and Regulatory Affairs, a transition official said late Wednesday.

A low-profile position in the current administration, the job is likely to be a higher-wattage one after Obama takes office this month.

Sunstein seems like an unusually high-wattage person for this somewhat obscure job, further reenforcing the extent to which Obama is assembling a real team of all-stars where you have a bunch of people in secondary positions who would have enough stature to take on higher-profile jobs. OIR itself is a sub-part of the Office of Management and Budget and even though nobody’s ever heart of it, it has rather sweeping influence across the whole ambit of regulatory activities. Since there’s talk of doing a big overhaul of financial regulations that will be an obvious focus, but there’s lots and lots of regulating happening all over the place.

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