Some of you may be familiar with the Precautionary Principle, well established in Europe and Canada, and slowly gaining traction here in the US.  This spring I wrote a brief introduction to the Precautionary Principle for the online newsletter of Commonweal Institute, for which I am a volunteer research/writer.  The brief is attached (25 KB) for those interested in the references embedded in it.  

 

As a follow-up, let me add that the Superfund is broke, due largely to the fact that Bush2 has removed the imposed fees on the petro industry that funded most of the superfund projects.  Cleanups across the country are not just stranded but, as with the City and Port of Portland, finding it difficult to attract new business to a declared environmental disaster but without the means (or polluting culprits) to fund the clean up.  One of the best features of PP, in my opinion, is building assurance bonds into projects from the beginning, much as large construction projects are required to do, to make the initiators responsible in the future if something goes wrong, not the taxpayers.  As below, it is not just better to be safe than sorry, it is also cost-effective.  - KWC

 

Study Finds Net Gain From Pollution Rules
OMB Overturns Past Findings on Benefits

By Eric Pianin, Washington Post Staff Writer, Saturday, September 27, 2003; Page A01 @ http://www.washingtonpost.com/wp-dyn/articles/A7586-2003Sep26.html

A new White House study concludes that environmental regulations are well worth the costs they impose on industry and consumers, resulting in significant public health improvements and other benefits to society. The findings overturn a previous report that officials now say was defective.

The report, issued this month by the Office of Management and Budget, concludes that the health and social benefits of enforcing tough new clean-air regulations during the past decade were five to seven times greater in economic terms than were the costs of complying with the rules. The value of reductions in hospitalization and emergency room visits, premature deaths and lost workdays resulting from improved air quality were estimated between $120 billion and $193 billion from October 1992 to September 2002.

By comparison, industry, states and municipalities spent an estimated $23 billion to $26 billion to retrofit plants and facilities and make other changes to comply with new clean-air standards, which are designed to sharply reduce sulfur dioxide, fine-particle emissions and other health-threatening pollutants.

The report provides the most comprehensive federal study ever of the cost and benefits of regulatory decision-making. It has pleasantly surprised some environmentalists who doubted the Bush administration would champion the benefits of government regulations, and fueled arguments that the White House should continue pushing clean-air standards rather than trying to weaken some.  "I'm sure the true believers in the Bush administration will brand this report as true heresy because it defies the stereotype of burdensome, worthless regulations," Sen. Richard J. Durbin (D-Ill.) said yesterday. "They clearly don't understand that the government regulations are there to protect you -- and they work."

John D. Graham, director of OMB's Office of Information and Regulatory Affairs, which produced the study, said: "Our role at OMB is to report the best available estimates of benefits and costs, regardless of whether the information favors one advocacy group or another. In this case the data show that the Environmental Protection Agency's clean-air office has issued some highly beneficial rules."  But an industry official said the report may have greatly understated the costs associated with environmental regulations. Jeffrey Marks, a clean-air policy expert with the National Association of Manufacturers, said EPA "has traditionally underestimated the costs of regulations on industry. . . . The tendency to choose benefit numbers to correspond to favorable policy choices is strong within the agency."

The findings are more startling because a similar OMB report last year concluded that the cost of compliance with a given set of regulations was roughly comparable to the public benefits. OMB now says it had erred last year by vastly understating the benefits of EPA's rules establishing national ambient air quality standards for ozone and for particulate matter -- a major factor in upper respiratory, heart and lung disorders. Also, last year's report covered the previous six years and did not account for the beneficial effects of the 1990 amendments to the Clean Air Act that sharply reduced the problem of acid rain.

…"The bottom line is that the benefits from major environmental rules over the past 10 years were [five to seven] times greater than the costs," said Kevin Curtis of the National Environmental Trust. "And that's a number that can't be ignored, even by an administration that has blamed 'excessive' environmental regulations for everything from the California energy crisis to last month's blackout to job losses to the failing economy."  (end of excerpts)

 

Attachment: Precautionary Principle April 2003.doc
Description: MS-Word document

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