Day 7: The Regulatory Process

Daniel J. Mallinson

Political ScienceStockton University

Daniel.Mallinson@stockton.edu

POLS 3180

Mallinson Day 7 September 21, 2016 1 / 14

Road map

Understand our domain of study for the semester:The Regulatory Process (Part 2)

Mallinson Day 7 September 21, 2016 2 / 14

Regulation

Translating law into practice

“... how public administrators balance individualfreedom and government control” (Kettl 372).

Mallinson Day 7 September 21, 2016 3 / 14

Be the Regulator

1 For the purpose of establishing national primary andsecondary ambient air quality standards, theAdministrator shall within 30 days, publish, and shallfrom time to time thereafter revise, a list whichincludes each air pollutant–

A emissions of which, in his judgment, cause orcontribute to air pollution which may reasonably beanticipated to endanger public health or welfare;

B the presence of which in the ambient air results fromnumerous or diverse mobile or stationary sources; and

C for which air quality criteria had not been issued, butfor which he plans to issue air quality criteria underthis section.

Clean Air Act (42 U.S.C. §7408)

Mallinson Day 7 September 21, 2016 4 / 14

Type: EconomicEnsure market competitionSets standards for a fair and quality marketSets entry and price controlsImplications for admins: Need to decide how far to goExamples?

Mallinson Day 7 September 21, 2016 5 / 14

Type: EconomicEnsure market competitionSets standards for a fair and quality marketSets entry and price controlsImplications for admins: Need to decide how far to goExamples?

Mallinson Day 7 September 21, 2016 5 / 14

Type: Social

Focused on quality of life

Often deals with negativeexternalities of market/socialbehavior

Implications for admins: Needto enforce strong,nonnegotiable standards

Examples?

Mallinson Day 7 September 21, 2016 6 / 14

Type: Social

Focused on quality of life

Often deals with negativeexternalities of market/socialbehavior

Implications for admins: Needto enforce strong,nonnegotiable standards

Examples?

Mallinson Day 7 September 21, 2016 6 / 14

Source of Authority

Constitution

Congress

“Regulation is grounded in law, but it’s shaped bypolitics” (Kettl 373)

Mallinson Day 7 September 21, 2016 7 / 14

Statutory Mandates

Vague/Broad Language

“just and reasonable rates”

“eliminate unfair and deceptive practices”

“reasonably be anticipated to endanger”

Result?

Scientific Uncertainty

How much salt should you eat? (Whorisky 2015)

Mallinson Day 7 September 21, 2016 8 / 14

Statutory Mandates

Vague/Broad Language

“just and reasonable rates”

“eliminate unfair and deceptive practices”

“reasonably be anticipated to endanger”

Result?

Scientific Uncertainty

How much salt should you eat? (Whorisky 2015)

Mallinson Day 7 September 21, 2016 8 / 14

Resources

Cost-Benefit Analysis

Striving for certainty

Some costs and benefits cannot be quantifiedHow much is a human life worth (2011)?

EPA: $9.1 millionFDA: $7.9 millionDOT: $6 million

Risk Assessment

Perception of risk is just as important as statistical risk

Mallinson Day 7 September 21, 2016 9 / 14

Resources

Cost-Benefit Analysis

Striving for certainty

Some costs and benefits cannot be quantifiedHow much is a human life worth (2011)?

EPA: $9.1 millionFDA: $7.9 millionDOT: $6 million

Risk Assessment

Perception of risk is just as important as statistical risk

Mallinson Day 7 September 21, 2016 9 / 14

Resources

Cost-Benefit Analysis

Striving for certainty

Some costs and benefits cannot be quantifiedHow much is a human life worth (2011)?

EPA: $9.1 millionFDA: $7.9 millionDOT: $6 million

Risk Assessment

Perception of risk is just as important as statistical risk

Mallinson Day 7 September 21, 2016 9 / 14

Pressures

Politics

Time

Vague direction

Uncertainty

Result: shifts politics to administrators and the regulatoryprocess

Mallinson Day 7 September 21, 2016 10 / 14

Process

Mallinson Day 7 September 21, 2016 11 / 14

Procedure, Procedure, Procedure

Fair procedure is important

Often makes process less efficient

Courts more often than not review procedure, notsubstance of rulemakings when they are challenged

Mallinson Day 7 September 21, 2016 12 / 14

Three Values of Regulatory Admin

1 Fair procedures

2 Correct decisions

3 Policy achievement

How are these in conflict and how can they cooperate?

Mallinson Day 7 September 21, 2016 13 / 14

Three Values of Regulatory Admin

1 Fair procedures

2 Correct decisions

3 Policy achievement

How are these in conflict and how can they cooperate?

Mallinson Day 7 September 21, 2016 13 / 14

E-GovernmentThe Internet

Opportunity for greater public involvement

Variation in success

Mallinson Day 7 September 21, 2016 14 / 14