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8/11/2019 The Benefits of Public Protections: Ten Rules That Save Lives and Protect the Environment
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The Benefts o Public Protections:Ten Rules That Save Lives and Protect the Environment
JULY 20
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AUTHORS
July ran, Regulatory Policy Intern
Ronald White, Director o Regulatory Policy
CONTRIBUTORS
Katherine McFate, President and CEO
Brian Gumm, Communications DirectorJustin Santopietro, Regulatory Policy Intern
ABOUT THE CENTER FOR EFFECTIVE GOVERNMENT
Te Center or Effective Government works to build an open, accountable government that invests in the common
good, protects people and the environment, and advances the national priorities dened by an active, in ormed
citizenry.
Individuals and organizations wishing to quote, post, reprint, or otherwise redistribute this report, in whole or
in part, are permitted to do so i they provide attribution to the Center or Effective Government as the original
publisher. o contribute to the Center or Effective Government, please visit http://www. oreffectivegov.org/donate
http://www.foreffectivegov.org/donatehttp://www.foreffectivegov.org/donatehttp://www.foreffectivegov.org/donate8/11/2019 The Benefits of Public Protections: Ten Rules That Save Lives and Protect the Environment
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The Benefts o Public Protections:Ten Rules That Save Lives and Protect the Environment
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TABLE OF CONTENTSExecutive SummaryIntroduction
The Mandate to Use Beneft-Cost AnalysisCalculating the Benefts and Costs o Public ProtectionsThe Social and Economic Benefts o RegulationsReport MethodologyFindingsConclusionAppendix A -- Summary o Rules Examined
1. Proposed Rule: Occupational Exposure to Respirable Crystalline Silica2. Final Rule: Federal Motor Vehicle Sa ety Standards, Ejection Mitigation3. Proposed Rule: Federal Motor Vehicle Sa ety Standards; Electronic
Stability Control Systems or Heavy Vehicles4. Final Rule: Nutrition Labeling o Single-Ingredient Products and Ground or
Chopped Meat and Poultry Products5. Final Rule: Prevention o Salmonella Enteritidis in Shell Eggs During
Production, Storage, and Transportation6. Final Rule: National Ambient Air Quality Standards or Particulate Matter7. Final Rule: Mercury and Air Toxics Standards
8. Final Rule: Control o Air Pollution rom Motor Vehicles: Tier 3 MotorVehicle Emission and Fuel Standards
9. Proposed Rule: Hazardous and Solid Waste Management System;Identifcation and Listing o Special Wastes; Disposal o Coal CombustionResiduals rom Electric Utilities
10. Proposed Rule: E uent Limitations Guidelines and Standards or theSteam Electric Power Generating Point Source Category
13
45
7
9
101415151617
18
19
2123
25
27
29
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INTRODUCTIONIn a democracy, citizens expect their government to protect their health and well-being since both lawmakers
and public servants are ultimately accountable to the people. Starting with the Progressive Era in the early
1900s, this meant ensuring that unsa e drugs and ood could not be marketed to unsuspecting consumers and
that workers in industrial work settings were not orced to labor in unhealthy or high-risk workplaces. Te NewDeal brought more oversight o nancial institutions and the associational and workplace rights o workers. With
the growth o the consumer and environmental movements o the 1960s and 1970s, government responded to
citizen concerns about industrial pollution and chemical toxins by establishing rules limiting the emissions and
contaminants that businesses are allowed to use or produce. Over time, as our expanding knowledge o medicine
and science has improved our ability to evaluate the health risks o hazardous substances, public pressure to
regulate their use has also grown.
In practice, however, demands or better protections or human health and the environment have always been
contested. Tere are costs to complying with new health and sa ety standards, and some rms in some industries
have bitterly ought rules that increase their costs or constrain their activities. Even afer the catastrophic oil spill
in the Gul o Mexico, the explosion in West, exas, the contamination o the Elk River in West Virginia, and
the housing and economic collapse that resulted rom deregulating nancial institutions, some observers argue
that private rms are able to sel -regulate and will respond to the discipline o the market and so need no
collective standards or external en orcement o responsible standards o corporate behavior.
In our democracy, the balance between the publics interest in health and sa ety and commercial interests desire
or prots is hashed out in the political square rst, through laws passed by elected representatives o the
people (Congress and the president) that prioritize the value o human health and workplace sa ety, and next,
through the specic, detailed rules that allow executive branch agencies to implement and en orce the priorities
already written into law. For example, rules establish limits on the emissions or contaminants that commercial
enterprises are allowed to produce, the workplace conditions that employers are required to maintain or their
workers, and the in ormation a bank has to provide a borrower.
Rules are created utilizing the expertise o agency scientists and technical staff and afer extensive research and
consultation with scientists, engineers, industry-specic experts, workers, business owners and managers, and
the public. Congress allocates the unds to enact the rules that agencies establish in order to implement the laws
it passes. Rules are a critical mani estation o the democratic response to public demand. Tey are a reection o
societys values and are designed to achieve and protect the common good.
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Rulemaking is our democracys way o balancing the interests o the publics sa ety and well-being with the
prot-maximizing goals o the private sector. In act, regulatory standards benet private businesses as well. Tey
create a stable commercial environment, set the rules o competition, prevent a race to the bottom, and increase
consumer condence in products. I a rule is contested, it is almost always because a particular private business
or industrial sector has a vested interest in maintaining the status quo.
Regulations are needed to provide the public with essential protections that we as individuals cannot secure
ourselves. Without regulations, we would not have the cleaner air and water quality or sa er workplaces and
products that we now take or granted. In a society with no or too little regulation, only the wealthy and
privileged would be able to afford protections. Tis is not how a democratic society should unction. Our
national duty is to ensure equitable protections or everyone, and rules that provide those protections are a vital
component o achieving that objective.
Tis report examines the public health, worker sa ety, and environmental benets projected rom ten proposedor nal regulations issued between 2009 and 2014 by ve ederal agencies (the U.S. Environmental Protection
Agency, Occupational Sa ety and Health Administration, National Highway raffic Sa ety Administration,
Food and Drug Administration, and Department o Agricultures Food Sa ety and Inspection Service). Tese
rules range rom reducing toxic air pollutants rom power plants and other large industrial sources to reducing
workers exposure to disease-causing silica.
THE MANDATE TO USE BENEFIT-COSTANALYSISTe use o benet-cost analysis in the rulemaking process originated with an executive order issued by President
Ronald Reagan in 1981. Te executive order required the development o a regulatory impact analysis (RIA) or
any signicant regulatory action undertaken by executive branch agencies. 1 A signicant rule was dened
in a previous Carter administration executive order as having an annual economic impact, either positively or
negatively, o $100 million or more. 2 In todays dollars, the equivalent impact on the nations gross domestic
product would be $713 million. 3 Since this gure has not been adjusted to reect its relationship to the current
national economy, executive agencies are conducting impact analyses or rules that have substantially less impact
than they did more than 30 years ago. Rules that lead to a notable change in, or inconsistency with, existing
national policy are also considered signicant regulatory actions. Under Reagans executive order, a rules1 Executive Order 12291, issued by President Ronald Reagan. Exec Order No. 12291 (Feb. 17, 1981). Available athttp://www.presidency.ucsb.edu/ws/?pid=43424.2 Executive Order 12044, issued by President Jimmy Carter, established the denition o a signicant regulation as one having $100 million or moreeconomic impact on the economy. Exec. Order No. 12044 (March 23, 1978). Available at http://www.presidency.ucsb.edu/ws/?pid=30539 .3 Based on the ratio o $100 million to the 1978 U.S. GDP o $2.357 trillion as applied to the 2013 U.S. GDP o $16.803 trillion. Data source: http://useconomy.about.com/od/GDP-by-Year/a/US-GDP-History.htm .
http://www.presidency.ucsb.edu/ws/?pid=43424http://www.presidency.ucsb.edu/ws/?pid=43424http://www.presidency.ucsb.edu/ws/?pid=30539http://useconomy.about.com/od/GDP-by-Year/a/US-GDP-History.htmhttp://useconomy.about.com/od/GDP-by-Year/a/US-GDP-History.htmhttp://useconomy.about.com/od/GDP-by-Year/a/US-GDP-History.htmhttp://useconomy.about.com/od/GDP-by-Year/a/US-GDP-History.htmhttp://www.presidency.ucsb.edu/ws/?pid=30539http://www.presidency.ucsb.edu/ws/?pid=43424http://www.presidency.ucsb.edu/ws/?pid=434248/11/2019 The Benefits of Public Protections: Ten Rules That Save Lives and Protect the Environment
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monetized societal benets had to outweigh the compliance costs to industry in order or the rule to go orward. 4
In 1993, President Bill Clinton issued an executive order replacing the Reagan executive order and establishing
that the benets o rules should justi y their compliance costs. Clintons executive order notes that these rules
should be designed to maximize their cost effectiveness while recognizing that some costs and benets are
difficult to quanti y. 5 Tis approach to designing rules and assessing their benets and costs was reaffirmed by
President Barack Obama in 2011. 6
Te regulatory impact analysis or every major proposed rule prepared by an executive branch agency
identies the issue being addressed, possible regulatory options, and the costs and benets o each option. It
also establishes a baseline point or comparison and includes consideration o any side effects o the rule. Te
proposed rule and RIA are submitted to the Office o Management and Budgets (OMB) Office o In ormation
and Regulatory Affairs (OIRA) or review; this office can send the rule back or urther analysis or reject the rule
and require the agency to substantially revise its proposal and/or RIA. 7
CALCULATING THE BENEFITS AND COSTS OFPUBLIC PROTECTIONSTough benet-cost analysis has become a staple o regulatory analysis, its current methodology has signicant
aws and limitations. In addition to the ethical concerns about putting a price on human li e or suffering rom
disease, these analyses are highly dependent on the assumptions upon which projections are based.
Benets are ofen underestimated or the ollowing reasons: First, improvements in public health and the
environment are diffuse and ofen difficult to quanti y. Additionally, there is ofen sufficient scientic evidence to
indicate a signicant causal link between a problem and its impact (e.g., exposure to methylmercury and adverse
cardiovascular effects), but not enough in ormation to quanti y or monetize that relationship. When benets are
too difficult to quanti y, they are ofen dropped rom the analysis entirely, meaning a signicant societal benet
is simply omitted. 8 Agency analyses o the societal benets o a new rule or standard ofen list the benets that
are not able to be quantied and monetized, but it is essential that these unquantiable benets be considered in
estimating the level o protection provided by a regulatory action.
4 Op. Cit.5 Executive Order 12866, issued by President Bill Clinton, established the current cost-benet analysis requirements, 58 FR 51735 (Oct. 4, 1993).Available at http://www.regin o.gov/public/jsp/Utilities/EO_12866.pd .6 Executive Order 13563, issued by President Barack Obama, 76 FR 3821 (Jan. 18, 2011). Available at http://www.gpo.gov/ dsys/pkg/FR-2011-01-21/pd /2011-1385.pd . 7 Office o Management and Budget Circular A-4, denes best practices or regulatory analysis. (Sept. 17, 2003), Available at http://www.whitehouse.gov/sites/de ault/les/omb/assets/omb/circulars/a004/a-4.pd .See also OMB Circular A-4 Regulatory Impact Analysis: A Primer. (Aug. 15, 2011). Available athttp://www.whitehouse.gov/sites/de ault/les/omb/in oreg/regpol/circular-a-4_regulatory-impact-analysis-a-primer.pd . 8 Center or Progressive Re orm Saving Lives, Preserving the Environment, Growing the Economy: Te ruth about Regulation. White Paper #1109(July 2011). Available at http://www.progressivere orm.org/articles/RegBenets_1109.pd .
http://www.reginfo.gov/public/jsp/Utilities/EO_12866.pdfhttp://www.gpo.gov/fdsys/pkg/FR-2011-01-21/pdf/2011-1385.pdfhttp://www.gpo.gov/fdsys/pkg/FR-2011-01-21/pdf/2011-1385.pdfhttp://www.whitehouse.gov/sites/default/files/omb/assets/omb/circulars/a004/a-4.pdfhttp://www.whitehouse.gov/sites/default/files/omb/assets/omb/circulars/a004/a-4.pdfhttp://www.whitehouse.gov/sites/default/files/omb/inforeg/regpol/circular-a-4_regulatory-impact-analysis-a-primer.pdfhttp://www.whitehouse.gov/sites/default/files/omb/inforeg/regpol/circular-a-4_regulatory-impact-analysis-a-primer.pdfhttp://www.progressivereform.org/articles/RegBenefits_1109.pdfhttp://www.progressivereform.org/articles/RegBenefits_1109.pdfhttp://www.whitehouse.gov/sites/default/files/omb/inforeg/regpol/circular-a-4_regulatory-impact-analysis-a-primer.pdfhttp://www.whitehouse.gov/sites/default/files/omb/inforeg/regpol/circular-a-4_regulatory-impact-analysis-a-primer.pdfhttp://www.whitehouse.gov/sites/default/files/omb/assets/omb/circulars/a004/a-4.pdfhttp://www.whitehouse.gov/sites/default/files/omb/assets/omb/circulars/a004/a-4.pdfhttp://www.gpo.gov/fdsys/pkg/FR-2011-01-21/pdf/2011-1385.pdfhttp://www.gpo.gov/fdsys/pkg/FR-2011-01-21/pdf/2011-1385.pdfhttp://www.reginfo.gov/public/jsp/Utilities/EO_12866.pdf8/11/2019 The Benefits of Public Protections: Ten Rules That Save Lives and Protect the Environment
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Societal benets are urther underestimated due to the practice o discounting uture benets. Discounting
is used to convert uture costs and benets into present values so that they are comparable (e.g., a business
would need to invest in new control equipment in the near term to adhere to a new pollution emissions
standard, but the benets o a cleaner environment would accrue to the public over a long period o time in
the uture). Discounting places greater value on benets that are received closer to the present than those that
occur arther in the uture. Te choice o a discount rate is subjective, but ederal agency economists usually
discount the uture value o benets and compliance costs by three percent or seven percent per year, as these
are the guidelines set by the Office o Management and Budget. 9 For rules whose societal benets emerge afer
a long period o time ( or example, rules that reduce the amount o greenhouse gases in the atmosphere to
address climate change), discounting the value o the benet over long periods o time means that its estimated
benets will eventually disappear, when o course the real benets may in act grow over time. 10 Tis concern is
acknowledged by OMB as well.11
As societal benets are ofen underestimated, compliance costs are ofen exaggerated. Estimates o the costs o
compliance typically come rom survey data that regulatory agencies collect rom the companies that will be
affected by a regulation. Tis practice introduces an incentive or companies to inate their cost projections
in order to increase the estimated costs o a new rule. Companies typically claim condentiality or their
cost in ormation, which limits the ability o the public to veri y the accuracy o the data. 12 Moreover, i cost
in ormation rom these surveys is inadequate, agencies have to make educated estimates. In these situations,
agency staff tend to use high estimates o costs in order to avoid litigation by regulated companies asserting that
the cost in ormation is inaccurate. 13
In sum, benet-cost analysis is an imper ect practice based on many assumptions and estimates that can alter
outcomes. Acknowledging that some benets and costs are difficult to quanti y, the executive orders governing9 Environmental Protection Agency Guidelines or Preparing Economic Analyses Ch 6 Discounting Future Benets and Costs. (December 2010).Available at http://yosemite.epa.gov/ee/epa/eerm.ns /vwAN/EE-0568-06.pd /$le/EE-0568-06.pd . Also see OMB Circular A-4, op. cit. 10 Center or Progressive Re orm Saving Lives, Preserving the Environment, Growing the Economy: Te ruth about Regulation. (July 2011). Alsosee Ben rachtenberg, Health Ination, Wealth Ination, and the Discounting o Human Li e 89 Or. L. Rev. (2011) available at http://law.uoregon.edu/org/olrold/archives/89/rachtenberg.pd . 11 OMB Circular A-4 Regulatory Impact Analysis: A Primer noting Discounting the wel are o uture generations at 7 percent or even 3 percentcould create serious ethical problems.12 Public Citizen Foundation Not oo Costly, Afer All: An Examination o the Inated Cost Estimates o Health, Sa ety and EnvironmentalProtections. (February 2004).13 Center or Progressive Re orm Saving Lives, Preserving the Environment, Growing the Economy: Te ruth about Regulation. (July 2011). able6, page 13 shows several studies that ound overestimated costs or numerous regulations.See also Eban Goodstein & Hart Hodges, Polluted Data: Overestimating Environmental Costs, 8 Am. Prospect 64 (Nov./Dec. 1997) and WinstonHarrington, Richard D. Morgenstern, & Peter Nelson, On the Accuracy o Regulatory Cost Estimates (Resources or the Future, Discussion Paper99-18, 1999) available at http://www.rff.org/documents/RFF-DP-99-18.pd .
Benet-cost analysis is an imperfect practice based on many assumptionsand estimates that can alter outcomes.
http://yosemite.epa.gov/ee/epa/eerm.nsf/vwAN/EE-0568-06.pdf/$file/EE-0568-06.pdfhttp://law.uoregon.edu/org/olrold/archives/89/Trachtenberg.pdfhttp://law.uoregon.edu/org/olrold/archives/89/Trachtenberg.pdfhttp://www.rff.org/documents/RFF-DP-99-18.pdfhttp://www.rff.org/documents/RFF-DP-99-18.pdfhttp://law.uoregon.edu/org/olrold/archives/89/Trachtenberg.pdfhttp://law.uoregon.edu/org/olrold/archives/89/Trachtenberg.pdfhttp://yosemite.epa.gov/ee/epa/eerm.nsf/vwAN/EE-0568-06.pdf/$file/EE-0568-06.pdf8/11/2019 The Benefits of Public Protections: Ten Rules That Save Lives and Protect the Environment
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the development o regulations require that the benets rom the regulations justi y the costs, but do not
require that the public benets that can be monetized have to outweigh estimated costs to industry. 14
Nonetheless, the monetary societal benets rom public protections almost always exceed compliance costs to
industry, 15 and these monetary benets are supplemented by substantial unquantiable benets in improvements
to health, wel are, and the environment. Even when public protections result in a small increase in costs to
consumers, both the monetary and societal benets resulting rom the rules ar outweigh the minimal cost
increases.
THE SOCIAL AND ECONOMIC BENEFITS OFREGULATIONSTe ten regulations reviewed in this report have no signicant impact on jobs and the economy, despite
conservative rhetoric about regulations killing jobs. 16 None o the rules were projected to have a signicant
negative impact on the economy; in act, three o the rules are projected to create net new jobs. Overall, thecollective estimated impact o these rules on jobs is to slightly increase the overall number o jobs, as a result
o increased labor demand to comply with the rules. Tree o the ten rules have the potential to affect small
businesses, but exemptions and provisions are included in the rules to alleviate these effects. Also, three o the
ten rules examined may slightly increase costs to consumers, but these increases are either negligible or very
small, especially compared to the size o the economy.
14 Executive Order 12866 (Oct. 4, 1993).See also Executive Order 13563, issued by President Barack Obama, Improving Regulation and Regulatory Review. Exec Order No. 13563. F.R 2011-1385. (Jan. 18, 2011). Available athttp://www.gpo.gov/ dsys/pkg/FR-2011-01-21/pd /2011-1385.pd . 15 Center or Progressive Re orm Saving Lives, Preserving the Environment, Growing the Economy: Te ruth about Regulation. (July 2011).16 Eric Cantor, Memo on Upcoming Jobs Agenda. (Aug. 29, 2011). Available at http://majorityleader.gov/blog/2011/08/memo-on-upcoming-jobs-agenda.html.
Te executive orders governing the development of regulations require thatthe benets from the regulations justify the costs, but do not require thatthe public benets that can be monetized have to outweigh estimated costs toindustry.
http://www.gpo.gov/fdsys/pkg/FR-2011-01-21/pdf/2011-1385.pdfhttp://majorityleader.gov/blog/2011/08/memo-on-upcoming-jobs-agenda.htmlhttp://majorityleader.gov/blog/2011/08/memo-on-upcoming-jobs-agenda.htmlhttp://majorityleader.gov/blog/2011/08/memo-on-upcoming-jobs-agenda.htmlhttp://majorityleader.gov/blog/2011/08/memo-on-upcoming-jobs-agenda.htmlhttp://www.gpo.gov/fdsys/pkg/FR-2011-01-21/pdf/2011-1385.pdf8/11/2019 The Benefits of Public Protections: Ten Rules That Save Lives and Protect the Environment
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Numerous studies negate the claim that regulations lead to signicant job loss 17 and stall the economy. 18 No
evidence shows that regulations lead to signicant overall losses in employment or that regulations cause
companies to move overseas. In act, rules may increase employment and competitiveness by encouraging
industry to become more productive and innovative in response to the regulations. 19 Pollution control
regulations result in jobs in areas such as construction and technology. For instance, the Manu acturers o
Emission Controls Association (MECA) estimated that in 2010, the economic activity that resulted rom
emission control technology or new cars and trucks in the U.S. totaled $12 billion. Additionally, MECA member
companies provided 65,000 green jobs in the U.S. 20 Te Institute o Clean Air Companies (ICAC) orecasts
that the overall U.S. market or air pollution control and monitoring technology is around $5 billion a year (in
constant 2012 dollars) and is expected to increase to almost $6 billion by 2016. 21 Te EPAs Mercury and Air
oxics rule, which requires the installation o pollution control systems on power plants and large industrial
acilities, is projected to result in 46,000 short-term job years, 22 as well as 8,000 long-term jobs.
A large body o literature exists demonstrating that regulations do not have a signicant impact on the overall
economy and job availability. Although specic regulations may lead to job gains or losses in a particular
industry, the jobs effect o regulations overall is slightly positive or neutral. 23 Key studies have shown that
environmental regulations in particular do not have a signicant effect on employment. Berman and Buiexamined the impact that local air pollution regulations in Southern Cali ornia had on local manu acturing
jobs, compared to other rms in the region over time and to rms outside the region. Tey ound no signicant
effect on employment. 24 Morgenstern, et. al., urther ound that increased spending due to compliance with17 See National Journal, John Boehners Remarks at Economic Club o Washington. (Sept. 15, 2011). Available at http://www.nationaljournal.com/congress/text-john-boehner-s-remarks-at-economic-club-o -washington-20110915 See also Eric Cantor, Memo on Upcoming Jobs Agenda. (Aug. 29, 2011).18 Since 2007, the Bureau o Labor Statistics has asked rms that have had a mass layoff the reasons behind these layoffs. Only 0.2% to 0.4% o allmass layoffs were due to government regulation, as reported by the rms. Bureau o Labor Statistics (2012) Extended Mass Layoffs in 2011. UnitedStates Department o Labor, Report 1039. Also, randomized surveys o small business owners show that at most, 25% o small business owners areconcerned about excessive government regulation. See also American Sustainable Business Council et al . (2012) Small Business Owners Opinionson Regulations and Job Creation (1 Feb). Hall, Kevin (2011) Regulation, axes Arent Killing Small Business, Owners Say, McClatchy Newspapers(Sept. 1). Dunkelberg, William C., and Holly Wade (2011) NFIB Small Business Economic rends (August).19 Center or Progressive Re orm Saving Lives, Preserving the Environment, Growing the Economy: Te ruth about Regulation. (July 2011).20 Manu acturers o Emission Controls Association, MECA Highlights Economic Benets o Mobile Source Emission Control Industry. (March2011). http://www.meca.org/galleries/les/MECA_economic_benets_press_release_031111.pd .See also Institute o Clean Air Companies Re: New Source Review Impact on Air Pollution Control (APC) Industry. (February 2004). http://www.icac.com/?page=jobs&terms=%22re+and+new+and+source+and+review+and+impact+and+air+and+pollution+and+cont%22 .21 Institute o Clean Air Companies. September 2013. Available at http://c.ymcdn.com/sites/www.icac.com/resource/resmgr/market_ orecast/press_release_2013_market_ o.pd . 22 A job-year is one job or one year. See http://www.whitehouse.gov/assets/documents/Job-Years_Revised5-8.pd .23 Economic Policy Institute, Regulation, Employment, and the Economy: Fears o job loss are overblown. (April 12, 2011). Available at http://www.epi.org/publication/regulation_employment_and_the_economy_ ears_o _job_loss_are_overblown/ . 24 Berman and Bui. (2001) Environmental Regulation and Labor Demand: Evidence rom the South Coast Air Basin, Journal of Public Economics 79: 265-95.
Overall, the collective estimated impact of these rules on jobs is to slightlyincrease the overall number of jobs, as a result of increased labor demand tocomply with the rules.
http://www.nationaljournal.com/congress/text-john-boehner-s-remarks-at-economic-club-of-washington-20110915http://www.nationaljournal.com/congress/text-john-boehner-s-remarks-at-economic-club-of-washington-20110915http://www.meca.org/galleries/files/MECA_economic_benefits_press_release_031111.pdfhttp://www.icac.com/?page=jobs&terms=%22re+and+new+and+source+and+review+and+impact+and+air+and+pollution+and+cont%22http://www.icac.com/?page=jobs&terms=%22re+and+new+and+source+and+review+and+impact+and+air+and+pollution+and+cont%22http://c.ymcdn.com/sites/www.icac.com/resource/resmgr/market_forecast/press_release_2013_market_fo.pdfhttp://c.ymcdn.com/sites/www.icac.com/resource/resmgr/market_forecast/press_release_2013_market_fo.pdfhttp://www.whitehouse.gov/assets/documents/Job-Years_Revised5-8.pdfhttp://www.epi.org/publication/regulation_employment_and_the_economy_fears_of_job_loss_are_overblown/http://www.epi.org/publication/regulation_employment_and_the_economy_fears_of_job_loss_are_overblown/http://www.epi.org/publication/regulation_employment_and_the_economy_fears_of_job_loss_are_overblown/http://www.epi.org/publication/regulation_employment_and_the_economy_fears_of_job_loss_are_overblown/http://www.whitehouse.gov/assets/documents/Job-Years_Revised5-8.pdfhttp://c.ymcdn.com/sites/www.icac.com/resource/resmgr/market_forecast/press_release_2013_market_fo.pdfhttp://c.ymcdn.com/sites/www.icac.com/resource/resmgr/market_forecast/press_release_2013_market_fo.pdfhttp://www.icac.com/?page=jobs&terms=%22re+and+new+and+source+and+review+and+impact+and+air+and+pollution+and+cont%22http://www.icac.com/?page=jobs&terms=%22re+and+new+and+source+and+review+and+impact+and+air+and+pollution+and+cont%22http://www.meca.org/galleries/files/MECA_economic_benefits_press_release_031111.pdfhttp://www.nationaljournal.com/congress/text-john-boehner-s-remarks-at-economic-club-of-washington-20110915http://www.nationaljournal.com/congress/text-john-boehner-s-remarks-at-economic-club-of-washington-201109158/11/2019 The Benefits of Public Protections: Ten Rules That Save Lives and Protect the Environment
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environmental regulations was not correlated with changes in employment levels across our sectors o industry
rom 1979 to 1991. 25 Official data rom the Bureau o Labor Statistics additionally illustrates this point with data
rom their extended mass layoffs program. From 2007 to 2012, the bureau asked employers who have had mass
layoffs the reasons or those layoffs. During this time period, only 0.2 percent to 0.4 percent o all mass layoffs
were reported as due to government regulation. 26 Given these pieces o evidence and numerous other studies, it
is clear that the overall effect o regulation on jobs is minimal.
REPORT METHODOLOGYTis report examined the regulatory impact analyses o ten rules that were proposed or nalized between
2009 and 2014. o provide a broad scope o ederal agencies and public protections, rules issued by ve ederal
agencies covering a variety o public and worker health and sa ety issues were selected or review. In ormation
on the rule costs and benets, as well as unquantiable or non-monetized benets and economic impacts, was
obtained rom the proposed or nal rules as published in the Federal Register or rom the regulatory impactanalysis document prepared by the agency in conjunction with development o the rule. Annualized costs over
time using a seven percent discount rate and annualized benets over time based on a three percent discount
rate are included in this report where both rates were provided, unless otherwise noted. Point estimates and
midpoint values were reported and used in calculations i they were given. Otherwise, ranges were used.
In calculating the total impact o the rules, all dollar amounts were converted to 2014 values using the GDP
deator. 27 Te National Ambient Air Quality Standards or Particulate Matter rule was excluded rom the cost
and benet totals in order to avoid double-counting the costs and benets associated with the reduction o
particulate matter rom other rules examined. 28
For proposed rules with multiple regulatory options or calculation methodologies, the lowest cost/benet value
o all options was used as the low end o the cost and benet ranges. Similarly, the highest cost/benet value o
all options was used as the high end o the cost and benet ranges. Te net benet o the option with the lowest
net benet was used as the amount or the low end o the net benet range, and the net benet o the option with
the highest net benet was used as the value or the high end o the net benet range. otal low and high endcosts, economic benets, and net benets were calculated by summation o individual low and high end costs,
economic benets, and net benets or each o the nine rules in the combined analysis.
25 Morgenstern, et al. (2002) Jobs Versus the Environment: An Industry-Level Perspective, Journal of Environmental Economics and Management 43: 412-36.26 Bureau o Labor Statistics, Mass Layoff Statistics. Available athttp://www.bls.gov/mls/ . See also Economic Policy Institute, A Quick guide to theEvidence on Regulations and Jobs. (Nov. 22, 2011). Available at http://www.epi.org/publication/quick-guide-evidence-regulations-jobs/ .27 GDP deator calculator. Available at http://stats.areppim.com/calc/calc_usdlrxdeator.php . 28 Tis approach was used in OMBs 2014 draf annual report to Congress. OMB, 2014 Draf Report to Congress on the Benets and Costs o FederalRegulations and Un unded Mandates on State, Local, and ribal Entities. (May, 2014). Available at http://www.whitehouse.gov/sites/de ault/les/omb/in oreg/2014_cb/draf_2014_cost_benet_report-updated.pd .
http://www.bls.gov/mls/http://www.epi.org/publication/quick-guide-evidence-regulations-jobs/http://stats.areppim.com/calc/calc_usdlrxdeflator.phphttp://www.whitehouse.gov/sites/default/files/omb/inforeg/2014_cb/draft_2014_cost_benefit_report-updated.pdfhttp://www.whitehouse.gov/sites/default/files/omb/inforeg/2014_cb/draft_2014_cost_benefit_report-updated.pdfhttp://www.whitehouse.gov/sites/default/files/omb/inforeg/2014_cb/draft_2014_cost_benefit_report-updated.pdfhttp://www.whitehouse.gov/sites/default/files/omb/inforeg/2014_cb/draft_2014_cost_benefit_report-updated.pdfhttp://stats.areppim.com/calc/calc_usdlrxdeflator.phphttp://www.epi.org/publication/quick-guide-evidence-regulations-jobs/http://www.bls.gov/mls/8/11/2019 The Benefits of Public Protections: Ten Rules That Save Lives and Protect the Environment
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FINDINGSWhen ully implemented, these rules will result in over 10,000 ewer deaths and almost 300,000 avoided disease
cases, illnesses, or injuries each year.29 Based on the benet-cost analyses prepared or these rules, the monetized
societal benets are expected to be between $60 billion and $138 billion, while the total annual compliance costs
are estimated to be $14 billion to $16 billion, generating a net monetized benet to society o between $46 billionto $122 billion. As noted in able 1, nine o the ten regulations projected greater monetized social benets than
compliance costs. Te one rule with a negative net benet, EPAs proposed Effluent Limitations Guidelines rule,
is projected to result in a multitude o signicant ecological and health impacts critical to protecting public
health and conserving sensitive ecosystems, but agency analysts were unable to quanti y and monetize these
benets.
Tese rules will prevent a signicant number o diseases, injuries, deaths, and lost worker productivity.
Additionally, substantial improvements in ecosystems, the climate, and the publics health and wel are will also
result rom these rules but cannot be adequately monetized. able 2 summarizes the unquantiable benets
associated with ve o the rules that provided this in ormation. Overall, the total benets substantially outweigh
their costs, and this net benet would be even greater i all the benets that are projected to accrue rom these
rules were able to be monetized.
29 Includes data only rom rules or which annual benets were available.
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Table 1. Annual Monetized Benefts, Costs, Net Benefts,and Economic Impacts o Ten Rules (2014$)
Rule Estimated AnnualMonetized Benefts*Estimated Annual
Compliance Costs**Estimated Annual
Net Benefts
EstimatedEconomic or Jobs
Impact
Occupational Exposureto Respirable Crystalline
Silica OSHA, proposed9/12/2013
$5.65 billion $707.6 million $4.94 billion Increase o 8,625 job-years rom 2014
- 2023
Federal Motor VehicleSa ety Standards,Ejection Mitigation
NHTSA, fnalized1/19/2011
$2.45 billion $545.2 million $1.91 billion No impact on smallbusinesses, smallorganizations,small governmental
jurisdictions, andsmall vehiclemanu acturers
Federal Motor VehicleSa ety Standards;Electronic StabilityControl Systems orHeavy Vehicles
NHTSA, proposed5/23/2012
$363.3 million to$449.3 million
$120.7 million $242.3 million to$329.4 million
No impact on smallbusinesses, smallorganizations,small governmental
jurisdictions, andsmall vehiclemanu acturers
Nutrition Labelingo Single-IngredientProducts and Groundor Chopped Meat and
Poultry Products FSIS, fnalized12/29/2010
$115.4 million $13.8 million $101.7 million No signifcantimpact on asubstantial numbero small entities
National Ambient AirQuality Standards orParticulate Matter
EPA, fnalized1/14/2013
$4.25 billion to $9.67billion
$56.3 million to $371.9million
$3.93 billion to$9.56 billion
Mercury and Air ToxicsStandards
EPA, fnalized2/16/2012
$40.9 billion to $99.44billion
$10.6 billion $29.8 billion to$88.4 billion
Increase o 8,000long-term jobs
Increase o 46,000 job-years in shortterm
Slight increase inutility rates
Potential signifcantimpact on smallentities
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Control o Air Pollutionrom Motor Vehicles: Tier3 Motor Vehicle Emissionand Fuel Standards
EPA, fnalized4/28/2014
$7.71 billion to $19.8billion
$1.6 billion(No discount)
$6.15 billion to$18.76 billion
Negligible increasein product andpossible consumercosts
Negligible decreasein vehicle sales
Small jobs impact
Potential signifcantimpact on smallentities.
Hazardous and SolidWaste ManagementSystem; Identifcationand Listing o SpecialWastes; Disposal o CoalCombustion ResidualsFrom Electric Utilities
EPA, proposed
6/21/2010
$1.1 billion to $7.96billion (7% discount)
$253.8 million to $1.59billion
$821.6 million to$6.15 billion
Less than 1%increase inelectricity prices
No signifcantimpact on smallbusinesses
E uent LimitationsGuidelines and Standardsor the Steam ElectricPower Generating PointSource Category
EPA, proposed6/7/2013
$148.1 million to $512.7million
$174.8 million to$971.9 million
-$459.2 million to-$26.7 million
Increase o 168 to865 jobs
Minimal ornegligible impactson electricity market
Increase inconsumer costs rom1 cent to $3.89
*Based on 3% discount rate**Based on 7% discount rate
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Table 2. Unquantifable (and Non-monetized) Benefts o Five Rules
Rule Benefts
National Ambient Air QualityStandards or Particulate Matter
EPA, fnalized 1/14/2013
Improved visibility Improved ecosystem health Reduction o negative e ects on climate Reduction o other adverse health e ects
Mercury and Air Toxics Standards EPA, fnalized 2/16/2012
Improved visibility Improved ecological health Reduction o other neurological e ects o mercury Reduction o non-neurological adverse health e ects o mercury Reduction o health e ects due to ozone and direct exposure to sul ur
dioxide and nitrogen dioxide Reduction o health e ects rom commercial and non- reshwater fsh
consumption Reduction o health risks rom exposure to non-mercury hazardous air
pollutants
Control o Air Pollution rom MotorVehicles: Tier 3 Motor VehicleEmission and Fuel Standards
EPA, fnalized 4/28/2014
Improved visibility Improved ecological and vegetation health Reduction in materials damage Reduction o negative e ects on climate
Hazardous and Solid WasteManagement System; Identifcationand Listing o Special Wastes;Disposal o Coal CombustionResiduals From Electric Utilities
EPA, proposed 6/21/2010
Prevention o non-cancer health e ects Prevention o ambient air pollution Ecological protection Sur ace water protection
E uent Limitations Guidelines andStandards or the Steam ElectricPower Generating Point SourceCategory
EPA, proposed 6/7/2013
Human health benefts Reduced e ects rom exposure to lead rom fsh consumption Reduced health e ects rom pollutants in recreational water
Ecological benefts Reduced sediment contamination Reduced bioaccumulation o metals Reduction o other sub-lethal chronic e ects o toxic metals on aquatic li e Reduced adverse e ects on wildli e population diversity and community
dynamics Reduction o potential or the ormation o hazardous algal blooms Enhanced recovery o endangered species vulnerable to change in water
quality
Market benefts Reduced water treatment costs Improved commercial fsheries yields Increased tourism and water-based recreation Increased property values rom water quality improvement
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wo o these rules, Mercury and Air oxics Standards and ier 3 Motor Vehicle Emission and Fuel Standards,
have the potential to affect small businesses. One rule, Prevention o Salmonella in Shell Eggs, will signicantly
impact small business chicken armers, but this is due to the act that the majority o egg arms all under
the legal denition o a small business, even though most are part o a large-scale poultry processing and
distribution system. Tree rules may slightly increase consumer costs, but the increases are either minimal or
negligible. Effluent Limitations Guidelines have the potential to slightly increase jobs, while compliance with
Mercury and Air oxics Standards has the potential to add almost 50,000 short-term job-years and 8,000 long-
term jobs. Data on job impacts were not available or every rule.
Tese results contribute to the body o evidence showing that the costs o regulations pale in comparison to
the magnitude o the societal benets they provide, even given the limitations o current benet-cost analysis
practices, which generally overestimate the costs o regulations and underestimates their benets. Tis
observation is especially signicant given that unquantied and non-monetized benets also substantially
contribute to the societal benets o a regulation.
CONCLUSIONTe rules examined in this report represent only a ew examples o the obvious benets that society receives
rom public standards and sa eguards. Moreover, some regulations may actually result in a small net increase in
jobs. In our modern, globalized world, we should expect to see the decline or phase-out o some industries as
technological innovation and the human imagination create new growth areas. Workers in declining industries
need to be aided in the transition to new kinds o jobs, but society has a clear interest in encouraging cleaner
orms o energy and sa er products. Tese priorities receive broad public support in survey afer survey.30
Public rulemaking is the way we operationalize these priorities. Te process o rulemaking allows us to gather
new scientic evidence and the input o affected industries, workers, and citizens to weigh the risks and
rewards o various paths orward. Te in ormation that goes into our assessments is imper ect, but the only
institution in society with the mission and capacity to protect the common good is government. Te processes
o democratic deliberation and governance are our best hopes or ensuring that the public interest prevails.30 Seehttp://environment.yale.edu/climate-communication/les/Climate-Policy-Support-April-2013.pd and http://pos.org/documents/12368_national_key_ndings_nal.pd as examples.
Te costs of regulations pale in comparison to the magnitude of thesocietal benets they provide, even given the limitations of currentbenet-cost analysis practices, which generally overestimate the costsof regulations and underestimates their benets.
http://environment.yale.edu/climate-communication/files/Climate-Policy-Support-April-2013.pdfhttp://pos.org/documents/12368_national_key_findings_final.pdfhttp://pos.org/documents/12368_national_key_findings_final.pdfhttp://pos.org/documents/12368_national_key_findings_final.pdfhttp://pos.org/documents/12368_national_key_findings_final.pdfhttp://environment.yale.edu/climate-communication/files/Climate-Policy-Support-April-2013.pdf8/11/2019 The Benefits of Public Protections: Ten Rules That Save Lives and Protect the Environment
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APPENDIX A SUMMARY OF RULES EXAMINEDProposed Rule: Occupational Exposure to Respirable Crystalline Silica
Agency: Occupational Sa ety and Health Administration (OSHA)
Date Proposed: September 12, 2013
Te current permissible exposure level or crystalline silica in occupational settings, adopted in 1971 based on
now-obsolete methods, ranges rom 50 g/m 3 to 250 g/m3 depending on the industry and the orm o silica.
Exposure to silica at levels below these standards leads to a signicant increased risk o lung cancer, silicosis,
kidney disease, autoimmune disease, chronic obstructive pulmonary disease, and other respiratory diseases.
Tis proposed rule will lower the current permissible exposure level to 50 g/m 3 or all types o crystalline
silica in order to reduce the signicant health risks that workers currently ace rom exposure to silica. Te
proposal provides or improved worker protections through the use o exposure controls, exposure assessments,
respiratory protection, medical surveillance, hazard communication, and record keeping.
Te yearly projected compliance costs total $708 million, with midpoint estimated monetized benets totaling
$5.7 billion, resulting in a net monetized benet o $5 billion. Tese monetary benets reect substantial annual
reductions in silica-related disease. Tese include 1,585 cases o moderate to severe silicosis, 162 cases o lung
cancer, 151 cases o end-stage renal disease, and 375 cases o silicosis and other respiratory disease, totaling 688
atal illnesses that will be prevented each year. Additionally, there may be a slight increase in jobs.31
Not only willthis proposed rule lead to a large net monetary benet, but it will also reap signicant benets in public health
through the prevention o numerous diseases.
Occupational Exposure to Silica
Annual Monetized Benefts, Compliance Costs, and Estimated Jobs Impact (2014$)Estimated Monetized
Benefts (3% discount)
Estimated Compliance
Costs (7% discount)Estimated Net Benefts Estimated Jobs Impact
$5.65 billion $707.6 million $4.94 billionIncrease o 8,625 job-years
rom 2014-2023
31 Occupational Sa ety and Health Administration, Occupational Exposure to Respirable Crystalline Silica. F.R. 2013-20997 (Sept. 12, 2013).Available at http://www.regulations.gov/#!documentDetail;D=OSHA-2010-0034-1721 .
http://www.regulations.gov/#!documentDetail;D=OSHA-2010-0034-1721http://www.regulations.gov/#!documentDetail;D=OSHA-2010-0034-1721http://www.regulations.gov/#!documentDetail;D=OSHA-2010-0034-1721http://www.regulations.gov/#!documentDetail;D=OSHA-2010-0034-17218/11/2019 The Benefits of Public Protections: Ten Rules That Save Lives and Protect the Environment
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Monetized Benefts
Cases Annual Number o Cases Prevented Total Number o Cases Preventedover a 45-Year Working Li etime
Lung Cancers High Midpoint Low
271162
53
12,1737,2892,404
Silicosis & Other Non-MalignantRespiratory Diseases 375 16,878
End-Stage Renal Disease 151 6,774
Total Number o Fatal IllnessesPrevented High Midpoint Low
796
688
579
35,82530,94026,055
Total Number o Moderate to SevereSilicosis Cases Prevented 1,585 71,307
Final Rule: Federal Motor Vehicle Safety Standards, Ejection Mitigation
Agency: National Highway raffic Sa ety Administration (NH SA)
Date Finalized: January 19, 2011
An average o about 10,000 deaths rom rollover car crashes occur each year, making rollover crashes second
only to rontal crashes, which average 11,600 deaths annually, as the leading source o crash atalities in light
vehicles. Tough rollover crashes result in ewer annual atalities than rontal crashes, occupants in a rollover
crash are 14 times more likely to be killed than those who are in a rontal crash. Tis higher risk o death is dueto ejection rom the vehicle. From 2000-2009, 47 percent o people who were killed in rollover crashes were
completely ejected rom their vehicles. Tis rule will prevent an estimated 373 atalities and 476 injuries each
year by reducing partial or complete ejection o occupants through side windows in rollover and other crashes.
o comply with this rule, the agency expects that cars will include side curtain air bags that will cover more
o the window opening, remain inated longer, be employed in side impacts and rollovers, and be made to
both cushion and prevent ejection, regardless o the position or presence o the window glazing. Te estimated
compliance costs total $545 million a year, while the projected yearly monetized benets total $2.5 billion, with
a net monetized benet o $1.9 billion. Furthermore, there will be no signicant economic impact on small
businesses or small vehicle manu acturers. 32 Tis rule will generate large net monetized benets while saving
lives through the reduction o occupant ejection in rollover and other crashes.
32 National Highway raffic Sa ety Administration, Federal Motor Vehicle Sa ety Standards, Ejection Mitigation. F.R. 2013-21605 (Feb. 25, 2011).Available at http://www.regulations.gov/#!documentDetail;D=NH SA-2011-0004-0001 .
http://www.regulations.gov/#!documentDetail;D=NHTSA-2011-0004-0001http://www.regulations.gov/#!documentDetail;D=NHTSA-2011-0004-0001http://www.regulations.gov/#!documentDetail;D=NHTSA-2011-0004-0001http://www.regulations.gov/#!documentDetail;D=NHTSA-2011-0004-00018/11/2019 The Benefits of Public Protections: Ten Rules That Save Lives and Protect the Environment
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Federal Motor Vehicle Sa ety Standards, Ejection Mitigation
Annual Monetized Benefts, Compliance Costs, and Estimated Economic Impact (2014$)Estimated Monetized
Benefts (3%discount)
EstimatedCompliance Costs
(7% discount)
Estimated NetBenefts
Estimated QuantifedBenefts
Estimated EconomicImpact
$2.45 billion $545.2 million $1.91 billion Fatalities prevented:373
Serious injuriesprevented: 476
No impact on smallbusinesses, smallorganizations,small governmental
jurisdictions, andsmall vehiclemanu acturers
Proposed Rule: Federal Motor Vehicle Safety Standards; Electronic Stability Control Systems for Heavy
Vehicles
Agency: National Highway raffic Sa ety Administration (NH SA)
Date Proposed: May 23, 2012
Every year, crashes involving tractor trailer combination vehicles contribute to 72 percent o atal crashes
involving large trucks. O the 150,000 annual crashes associated with these vehicles, 29,000 o them involve
injury. raffic resulting rom these crashes also leads to the loss o millions o dollars through lost productivity
and excess energy consumption. Tis proposed rule would reduce the number o heavy vehicle crashes by
requiring electronic stability control systems on truck tractors and certain buses that have a gross vehicle weight
o greater than 26,000 pounds. An electronic stability control system uses automatic computer-controlled
braking and engine torque control to correct severe understeer or oversteer that leads to loss o control o the vehicle.
Te agency estimates that this rule will prevent 1,807 to 2,329 crashes, 649 to 858 injuries, 49 to 60 atalities, and
1,187 to 1,499 crashes resulting in only property damage each year. Te annual cost o installing an electronic
stability control system or upgrading a similar system or affected vehicles is estimated to be $121 million, while
the benets incurred each year include $363 million to $449 million in the monetized benets o preventing
injuries, property damage, and travel delays. Tis results in an annual net monetized benet o $242 million to
$329 million. Tere will be no impact on small entities as a result o this rule. 33 Requiring electronic stability
control systems on these vehicles will generate signicant net benets rom the prevention o injury, property
damage, travel delays, and atalities.
33 National Highway raffic Sa ety Administration, Federal Motor Vehicle Sa ety Standards; Electronic Stability Control Systems or Heavy Vehicles.F.R. 2012-12212 (May 23, 2012). Available athttp://www.regulations.gov/#!documentDetail;D=NH SA-2012-0065-0001 .
http://www.regulations.gov/#!documentDetail;D=NHTSA-2012-0065-0001http://www.regulations.gov/#!documentDetail;D=NHTSA-2012-0065-0001http://www.regulations.gov/#!documentDetail;D=NHTSA-2012-0065-0001http://www.regulations.gov/#!documentDetail;D=NHTSA-2012-0065-0001http://www.regulations.gov/#!documentDetail;D=NHTSA-2012-0065-0001http://www.regulations.gov/#!documentDetail;D=NHTSA-2012-0065-00018/11/2019 The Benefits of Public Protections: Ten Rules That Save Lives and Protect the Environment
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resulting rom the use o the nutritional in ormation. Small businesses that employ statements o percent at
and percent lean on the label o their ground products are exempt rom this rule i they do not make any other
nutrition claims or include other nutrition in ormation on the product labels. Tis exemption ensures that
small businesses that produce a low amount o the product do not risk going out o business or reducing their
consumers options in order to comply with the rule. With the exemption, this rule will generate $102 million in
net monetized benets without a signicant impact on small businesses. 35
Nutrition Labeling o Single-Ingredient Productsand Ground or Chopped Meat and Poultry Products
Annual Monetized Benefts, Compliance Costs, and Estimated Economic Impact (2014$)Estimated Monetized
Benefts (3%discount)
EstimatedCompliance Costs
(7% discount)
Estimated NetBenefts
EstimatedQuantitative Benefts
Estimated EconomicImpact
$115.4 million $13.8 million $101.7 million Prevention o : 5.5 deaths rom
breast cancer 7.2 deaths romprostate cancer
10.8 deaths romcolorectal cancer
97.8 deaths romcoronary heartdisease
No signifcant impacton a substantial
number o smallentities
Final Rule: Prevention of Salmonella Enteritidis in Shell Eggs During Production, Storage, and
TransportationAgency: Food and Drug Administration (FDA)
Date Finalized: July 9, 2009
Salmonella Enteritidis (SE) is one o the most common causes o oodborne illness in the United States.
In ection with Salmonella leads to diarrhea, ever, abdominal cramps, headache, nausea, and vomiting, and
may subsequently lead to hospitalization. In vulnerable populations, such as children, the elderly, and those
with a weak immune system, in ection can cause death afer spreading to the bone marrow or brain lining via
the bloodstream. In addition, two percent o those who recover rom in ection may develop reactive arthritisor recurring joint pain later on as a result o in ection. In 2004, there were 1,376,514 cases o salmonellosis,
resulting in 14,264 hospitalizations and 427 deaths. SE, the most common type o Salmonella contributing
to disease, led to 193,463 illnesses, 2,004 hospitalizations, and 60 deaths in 2001. Seventy-eight percent o
SE outbreaks where a contamination origin was identied were due to eggs. Since shell eggs are the primary
source through which humans contract SE, this rule will reduce the risk that eggs are contaminated with SE35 Food Sa ety and Inspection Service, Nutrition Labeling o Single-Ingredient Products and Ground or Chopped Meat and Poultry Products. F.R.2010-32485 (Dec. 29, 2010). Available athttp://www.regulations.gov/#!documentDetail;D=FSIS-2005-0018-0036 .
http://www.regulations.gov/#!documentDetail;D=FDA-2000-N-0190-0018http://www.regulations.gov/#!documentDetail;D=FDA-2000-N-0190-0018http://www.regulations.gov/#!documentDetail;D=FDA-2000-N-0190-0018http://www.regulations.gov/#!documentDetail;D=FDA-2000-N-0190-0018http://www.regulations.gov/#!documentDetail;D=FSIS-2005-0018-0036http://www.regulations.gov/#!documentDetail;D=FSIS-2005-0018-0036http://www.regulations.gov/#!documentDetail;D=FDA-2000-N-0190-0018http://www.regulations.gov/#!documentDetail;D=FDA-2000-N-0190-00188/11/2019 The Benefits of Public Protections: Ten Rules That Save Lives and Protect the Environment
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by establishing programs regarding biosecurity, pest control, environmental and egg testing, re rigeration and
storage practices, and the diversion o potentially in ected eggs rom the market. Te rule additionally requires
producers to register with the FDA and maintain records regarding compliance.
Since some o the controls outlined in the rule, especially rodent and pest control measures, will take up to
our years to become ully effective, cost and benet estimates were examined or two time rames: an initial
time rame assuming average effectiveness over the rst our years, and an eventual time rame assuming ull
effectiveness afer our years. Tis rule will prevent 68,790 illnesses initially and 79,170 illnesses when ully
implemented. Compliance costs are estimated to be $103 million a year initially and $95 million when ully
implemented, while monetized benets are projected to be $1.4 billion initially, eventually reaching $1.7 billion,
resulting in a net initial monetary benet o $1.3 billion and an eventual monetary benet o $1.6 billion.
Exempt rom this rule are producers who have ewer than 3,000 layers (egg-producing chickens) and producers
who sell all their eggs directly to consumers. Tis exemption reduces costs by more than hal while only reducingbenets by less than one percent. Although over 90 percent o producers have ewer than 3,000 layers, less
than one percent o the eggs produced in the U.S. are produced on these small arms. Tere ore, exempting
these small arms signicantly reduces costs while maintaining both monetary and health benets. Other small
entities, such as small chick and pullet armers, trucking companies, and holding acilities, will be affected by
this rule. However, the exemption or arms with ewer than 3,000 layers saves cost or these entities as well, since
they will not be required to comply with the rule when dealing with eggs produced on these arms. 36 Tis rule
contains costs while generating signicant net monetary benets and preventing tens o thousands o illnesses.
36 Food and Drug Administration, Prevention o Salmonella Enteritidis in Shell Eggs During Production, Storage, and ransportation. F.R. E9-16119(July 9, 2009). Available athttp://www.regulations.gov/#!documentDetail;D=FDA-2000-N-0190-0018 .
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Prevention o Salmonella Enteritidis in Shell EggsDuring Production, Storage, and Transportation
Annual Monetized Benefts, Compliance Costs, and Estimated Economic Impact (2014$)
Time rame
EstimatedMonetized
Benefts (3%discount)
EstimatedCompliance
Costs (7%discount)
Estimated NetBenefts
EstimatedQuantifed
Benefts
EstimatedEconomic Impact
Initially $1.44 billion $102.9 million $1.34 billion 68,790 illnessesaverted
Signifcant impacton more than1,000 small armsand other entitiessuch as smallchick and pulletarms, truckingcompanies, andholding acilities
Eventually $1.66 billion $94.7 million $1.56 billion 79,170 illnessesaverted
Final Rule: National Ambient Air Quality Standards for Particulate Matter
Agency: Environmental Protection Agency (EPA)
Date Finalized: January 14, 2013
Tis rule revises the previous primary health-based standard or particulate matter or PM 2.5 (particles less
than or equal to 2.5 micrometers (m) in diameter) rom 15.0 g/m 3 to 12.0 g/m3 in order to protect public
health and wel are rom the adverse effects o outdoor air pollution. Long- and short-term exposure to high
levels o outdoor air pollution leads to numerous health effects, such as premature mortality, increased hospital
admissions and emergency room visits, and chronic respiratory diseases. Tis revised standard incorporatesnew scientic evidence that includes extended analyses and supporting evidence that the adverse health effects
associated with PM 2.5 exposure to air pollution occur at levels that are lower than the previous standard. Te
revised standard additionally provides increased protection or at-risk populations, such as children, older
adults, and people with pre-existing heart and lung disease. When ully implemented, this revised standard will
prevent up to 1,000 deaths, 480 heart attacks, 250 hospital admissions or respiratory and heart disease, 230
asthma-related emergency room visits, and 40,000 asthma attacks in children each year, among other important
avoided health impacts.
Te costs and benets o this rule were estimated using two methodologies: the xed-cost methodology,
which assumes that controls used in the uture will have a similar cost to those used currently, and the
hybrid methodology, which assumes that uture controls will be available at an increasing cost. Te xed-
cost methodology resulted in the lower estimate and the hybrid methodology resulted in the higher estimate.
With these methods, the compliance costs were estimated to range rom $56 million to $372 million, while
the monetized benets were estimated to be between $4.3 billion to $9.7 billion. Tese estimates result in net
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monetary benets o $3.9 billion to $9.6 billion, in addition to tens o thousands o health effects avoided.
Benets that were not able to be quantied, such as improvements in visibility, ecosystem health, public health,
and climate change mitigation, urther contribute to the benets gained rom this rule.
Given the body o scientic literature concluding that air quality regulation has a negligible overall effect on
jobs, this rule is not expected to have a signicant impact on the overall economy. Furthermore, since this rule
is the revision o a national standard, the compliance control measures to be taken to meet this standard are
under the jurisdiction o state and local governments, giving them ultimate responsibility or assessing and
mitigating any negative economic impacts at the state or local levels, depending on the control measures they
choose to implement. 37 Tis revision strengthens protections or public health in a way that reaps very signicant
monetized benets relative to compliance costs, even without the inclusion o substantial, meaning ul benets
that were unable to be quantied.
National Ambient Air Quality Standards or Particulate Matter
Annual Monetized Benefts, Compliance Costs, and Unquantifed Benefts (2014$)
Methodology
EstimatedMonetized
Benefts (3%discount)
EstimatedCompliance
Costs (7%discount)
Estimated NetBenefts (3%
discount)
Estimated Quantifed Benefts
Health Cases Avoided
UnquantifedBenefts
Fixed-cost $4.25 billion $56.32 million $3.93 billion Adult mortality: 460-1,000 Non- atal heart attacks, age>18:
52-480 Hospital admissions
respiratory, all ages: 110
Hospital admissions cardiovascular, age >18: 140 ER asthma visits, all ages: 230 Acute bronchitis, age 8-12: 870 Lower respiratory symptoms,
age 7-14: 11,000 Upper respiratory symptoms,
asthmatics age 9-11: 16,000 Asthma exacerbation, age 6-18:
40,000 Lost work days, age 18-65:
71,000 Minor restricted-activity days,
age 18-65: 420,000
Improvements in: Visibility Ecosystem
health Public health
Climatechangemitigation
Hybrid $9.67 billion $371.9 million $9.56 billion
37 Environmental Protection Agency, National Ambient Air Quality Standards or Particulate Matter.F.R. 2012-30946 (Jan. 14, 2013) Available athttp://www.regulations.gov/#!documentDetail;D=EPA-HQ-OAR-2007-0492-10110 .
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Final Rule: Mercury and Air Toxics Standards
Also known as: National Emission Standards for Hazardous Air Pollutants From Coal- and Oil-Fired Electric
Utility Steam Generating Units and Standards of Performance for Fossil-Fuel-Fired Electric Utility, Industrial-
Commercial-Institutional, and Small Industrial-Commercial-Institutional Steam Generating Units
Agency: Environmental Protection Agency
Date Finalized: February 16, 2012
Tis rule protects public health by establishing emissions standards or hazardous air pollutants that are
produced by coal- and oil-red power plants. Exposure to hazardous pollutants, such as mercury (Hg), hydrogen
chloride, hydrogen uoride, selenium, arsenic, nickel, and others, leads to numerous adverse health effects.
Depending on the degree o exposure, the health effects can include nausea, vomiting, central nervous system
damage, kidney damage, and lung, skin, and mucus membrane damage. Arsenic and hexavalent chromium
are classied as human carcinogens, or cancer-causing agents. wo other pollutants, cadmium and nickel, are
classied as probable human carcinogens. When ully implemented, this rule will prevent between 4,200 and11,000 adult deaths, 20 in ant deaths, 2,800 cases o chronic bronchitis, 4,700 heart attacks, more than 2,600
hospital admissions or lung and heart disease, 3,100 emergency room visits by children with asthma, and
130,000 asthma attacks in children each year, among other health impacts.
Te electric power industry is the largest source o a number o hazardous air pollutants, particularly mercury.
Exposure to mercury in children has been linked to adverse neurodevelopment effects, including impairment o
brain unction assessed using intelligence quotient (IQ) measurements. Te controls that will be implemented to
comply with these mercury emission standards will also reduce the emissions o ne particles (PM 2.5) and sul urdioxide, generating signicant co-benets. While the compliance costs o implementing this rule are estimated
to be $10.6 billion, the monetized benets are expected to be between $41 billion to $99 billion, generating a net
monetary benet o $30 billion to $88 billion. $40 billion to $98 billion o these benets are due to the co-benet
o PM 2.5 reduction. Additional benets that could not be monetized include those related to visibility, reduction
o other neurological effects o mercury, non-neurological health effects o mercury, effects o ozone and direct
exposure to sul ur dioxide and nitrogen dioxide, health effects rom less consumption o mercury-tainted sh,
health risks rom non-mercury air pollutants, and reduced damage to ecosystems.
Tis rule will have a number o potential impacts on jobs, electricity costs, and small businesses. In the short
term, due to the high demand or new pollution control equipment, 46,000 job-years are expected to be created.
In the long term, it is estimated that this rule will result in an increase o 8,000 jobs, the central estimate o a
range between an estimated loss o 15,000 jobs to an estimated gain o 30,000 jobs.
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In 2016, natural gas prices are expected to increase by less than one percent and electricity rates are expected to
increase about three percent. Tis three percent is equal to the average change expected in electricity rates each
year. In the past 50 years, annual changes in electricity rates have uctuated broadly by as much as 23 percent.
Electricity rates in 2015 and 2020 are projected to be lower than in 2010, even with implementation o this rule.
Te increase in utility costs that could result rom this rule is estimated to be small and near the historical yearly
average rate change.
Tough this rule may raise utility costs, the exibility in compliance options outlined in the rule allow or
implementation in a manner that will maximize benets and contain costs or both small and large businesses.
Te signicant amount o monetary, health, and unquantied benets this rule will produce and the potential it
holds or job creation more than justi y the compliance costs. 38
Mercury and Air Toxics Standards
Annual Monetized Benefts, Compliance Costs, and Estimated Economic Impact (2014$)EstimatedMonetized
Benefts
EstimatedCompliance Costs
(7% discount)
Estimated NetBenefts
(3% discount)Unquantifed Benefts Estimated EconomicImpact
$40.9 billion to$99.44 billion
$10.6 billion $29.8 billion to$88.4 billion
Improved visibility Improved ecological health Reduction o other
neurological e ects o Hg Reduction o non-
neurological adverse healthe ects o Hg
Reduction o health e ectsdue to ozone and directexposure to sul ur dioxideand nitrogen dioxide
Reduction o health e ectsrom commercial and non-reshwater fsh consumption
Reduction o health risksrom exposure to non-mercury hazardous airpollutants
-15,000 to +30,000 long-term jobsCentral estimate: +8,000
jobs
+46,000 job-yearscreated in the short term
Average 3.1% increase inelectricity rates in 2016Range: 1.3% to 6.3%
Less than 1% increase innatural gas prices in 2016
Potential signifcantimpact on substantialnumber o small entities
Monetized Benefts Components (3% discount) (2014$)Partial Hg-related benefts $4.42 million to $6.63 million
PM2.5-related co-benefts $39.78 billion to $98.33 billion
Climate-related co-benefts $397.8 million
38 Environmental Protection Agency, National Emission Standards or Hazardous Air Pollutants From Coal- and Oil-Fired Electric UtilitySteam Generating Units and Standards o Per ormance or Fossil-Fuel-Fired Electric Utility, Industrial-Commercial-Institutional, andSmall Industrial-Commercial-Institutional Steam Generating Units. F.R. 2012-00806 (Feb. 16, 2012). Available at http://www.regulations.gov/#!documentDetail;D=EPA-HQ-OAR-2009-0234-20147 .
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Monetized Benefts
Estimated Reductions in Mercury and PM2.5-Related Health E ects in 2016Health E ect Cases Reduced
Point Estimate Range
Adult premature mortality Pope et al., (2002) (age >30)
Laden et al., (2006) (age >25)
4,200
11,000
1,200 to 7,200
5,000 to 17,000
In ant premature mortality (18) 4,700 1,200 to 8,300
Hospital admissions respiratory (all ages) 830 330 to 1,300
Hospital admissions cardiovascular (age >18) 1,800 1,200 to 2,200
Emergency room visits or asthma (age
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monetized benets. Te projected costs o compliance via changing technology, design, and production total
$1.6 billion, while the monetary benets rom improved health total $7.7 billion to $19.8 billion. Tus, the
net benets o this rule are estimated to be $6.2 billion to $18.8 billion, which do not include the numerous,
signicant benets that were unable to be quantied, such as improvements in air visibility and reductions in
material, ecological, vegetation, and climate damage.
As a result o this rule, the costs o production in vehicle manu acturing and petroleum rening industries
will slightly increase, and this increase may be passed on to consumers. I consumer costs increase, sales may
decline. However, these changes in price and sales are small and negligible in both the short and long term.
Although the jobs impact was unable to be determined, it is expected to be small and insignicant since the
changes in costs and sales are negligible. Because this rule applies to all cars sold in the U.S. regardless o where
they are produced, it does not create an incentive or manu acturers to move their production overseas. 39 While
the economic impacts o this rule will be negligible, the net monetary, quantied, and numerous unquantied
benets generate signicant economic gain and protections or public health.
Control o Air Pollution rom Motor Vehicles: Tier 3 Motor Vehicle Emission and Fuel Standards
Annual Monetized Benefts, Compliance Costs, and Estimated Economic Impact (2014$)
EstimatedMonetized
Benefts
EstimatedCompliance
Costs (Nodiscount)
Estimated NetBenefts
EstimatedQuantifed Benefts
Cases prevented
UnquantifedBenefts
Estimated EconomicImpact
$7.71 billion to$19.8 billion
(PM benefts:$6.25 billion to$14.59 billion
Ozone benefts:$1.15 billion to$5.21 billion)
$1.6 billion $6.15 billion to$18.76 billion
660 1,500PM-relatedprematuredeaths
110 500ozone-relatedprematuredeaths
81,000 workdays lost
210,000 schooldays lost
1.1 million minorrestricted-activitydays
Improved visibility
Reductions indamage o : Materials Ecosystems Vegetation Climate
Negligible increasein production costs,possible consumercosts, and decrease invehicle sales
Negligible increase incost o gas productionand potential consumercosts
Jobs impact expectedto be small sincechanges in cost andsales will be small
39 Environmental Protection Agency, Control o Air Pollution rom Motor Vehicles: ier 3 Motor Vehicle Emission and Fuel Standards, F.R. 2014-06954. (April 28, 2014). Available athttp://www.regulations.gov/#!documentDetail;D=EPA-HQ-OAR-2011-0135-5096 .
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Proposed rule: Hazardous and Solid Waste Management System; Identication and Listing of Special
Wastes; Disposal of Coal Combustion Residuals From Electric Utilities
Agency: Environmental Protection Agency
Date proposed: June 21, 2010
Tis proposed rule seeks to protect public health and the environment by subjecting coal combustion residuals,
commonly called coal ash, generated by electric utility and independent power producers to rst-time
regulations under the Resource Conservation and Recovery Act (RCRA). Coal ash is the byproduct o electricity
production using coal. Large amounts o residual materials are disposed o in sur ace impoundments, which are
areas o land designated or disposal. Coal ash contains a number o toxic materials, such as antimony, arsenic,
barium, beryllium, cadmium, chromium, lead, mercury, nickel, selenium, silver, and thallium. Tese toxins
can contaminate sur ace water afer a release and may also leach into the ground and contaminate groundwater
during storage. In 2008, the ailure o a sur ace impoundment retaining wall at an electric utility plant in
Kingston, ennessee led to a catastrophic release o coal ash into the surrounding environment.40
Te release othese toxins endangers public health and damages properties and ecosystems.
wo alternative regulatory actions are proposed: listing combustion residual materials as a special waste to be
regulated under subtitle C o RCRA, or regulating them as non-hazardous solid waste under subtitle D o RCRA.
Under subtitle C, coal ash would be listed as a special waste and would be subject to regulations spanning rom
generation to disposal. Units where combustion coal residuals are disposed o , treated, or stored would require
permits. Alternatively, under subtitle D, coal ash would be regulated as non-hazardous solid waste and would
only be subject to regulations regarding disposal. National criteria would be established to ensure sa e disposal,but only states or citizens, not the EPA, would be able to en orce these requirements. Both o these alternatives
include provisions regarding dam sa ety in order to improve the structural integrity o disposal areas and prevent
catastrophic releases.
Under subtitle C, the costs o improving the treatment and handling o coal ash would be $1.6 billion, while the
monetized benets would be $6.8 billion to $8 billion, generating a net monetized benet o $5.2 billion to $6.2
billion. Under subtitle D, the compliance costs would be $631 million and the monetized benets would be $2.7
billion to $3.2 billion, creating $2 billion to $2.6 billion in net monetized benets. One possible version o the
subtitle D proposal, called D prime, differs only in its allowance or existing impoundments to operate or their
use ul li e, instead o closing to install liners. Option D prime has estimated compliance costs o $254 million
and estimated monetized benets rom $1.1 billion to $1.4 billion, resulting in an annual net monetized benet
o $822 million to $1.2 billion. Depending on the nal option selected, the rule is estimated to prevent between
148 and 726 bladder and lung cancer cases over a 50-year period.
40 Shaila Dewan, New York imes, At Plant in Coal Ash Spill, oxic Deposits by the on. (December 29, 2008). Available at http://www.nytimes.com/2008/12/30/us/30sludge.html?_r=1&em .
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Te monetized benets include the prevention o structural ailure o sur ace impoundments and associated
cleanup costs, the protection o groundwater rom contamination, avoided cases o bladder and lung cancer, and
the potential uture annual increase in benecial uses o coal ash, such as its use as a component in concrete,
drywall, and road beds. Both costs and benets were presented with a seven percent discount rate and, based
on the EPAs past experiences, assumed that the increased cost o disposal will encourage industry to increase
benecial use o coal ash. Additional benets that were unable to be quantied include the prevention o non-
cancer health effects, ecological protection, sur ace water protection, and the prevention o ambient air pollution.
Te regulatory impact analysis prepared or this rule notes that non-quantied ecological benets could add
159 percent and socioeconomic benets could add 24 percent to the benets amount, in addition to the avoided
costs o cleaning up coal ash spills. Additionally, the rule is expected to increase electricity rates by less than one
percent at most, and it will not have an effect on small businesses. 41 Te alternatives outlined in this proposed
rule will protect public health and the environment against the catastrophic release o coal ash in a manner that
generates our to ve times as many benets as the costs required, even without contributions rom signicant
unquantied benets.42
41 Environmental Protection Agency. Regulatory Impact Analysis or EPAs Proposed RCRA Regulation o Coal Combustion Residues(CCR) Generated by the Electric Utility Industry. (April 30, 2010). Available at http://www.regulations.gov/#!documentDetail;D=EPA-HQ-RCRA-2009-0640-0003. 42 Environmental Protection Agency, Hazardous and Solid Waste Management System; Identication and Listing o Special Wastes; Disposal o CoalCombustion Residuals rom Electric Utilities. F.R. 2010-12286. (June 21, 2010). Available at http://www.regulations.gov/#!documentDetail;D=EPA-HQ-RCRA-2009-0640-0352.
Hazardous and Solid Waste Management System; Identifcation and Listing o Special Wastes;Disposal o Coal Combustion Residuals From Electric Utilities
Annual Monetized Benefts, Compliance Costs, Unquantifed Benefts,and Estimated Economic Impact (2014$)
RCRAJurisdiction
EstimatedMonetized
Benefts(7% discount)
EstimatedCompliance
Costs(7% discount)
Estimated NetBenefts
EstimatedQuantifed
Benefts
UnquantifedBenefts
EstimatedEconomic
Impact
Subtitle C $6.78 billion to$7.96 billion
$1.59 billion $5.16 billion to$6.15 billion
726 cancercases (over 50years)
Prevention onon-cancerhealth e ects
Ecologicalprotection
Sur ace waterprotection
Prevention oambient airpollution
Less than1% increasein electricityrates
No signifcantimpacton smallbusinesses
Subtitle D $2.69 billion to$3.23 billion
$631.3 million $2.04 billion to$2.58 billion
296 cancercases (over 50years)
Subtitle D
prime
$1.1 billion to
$1.4 billion
$253.8 million $821.6 million
to $1.18 billion
148 cancer cases
(over 50 years)
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Proposed Rule: Effluent Limitations Guidelines and Standards for the Steam Electric Power Generating
Point Source Category
Agency: Environmental Protection Agency
Date Proposed: June 7, 2013
Tis proposed rule will reduce the amount o pollutants discharged into sur ace water by revising standards
or these types o plants and guidelines or effluent, which is waste that is discharged into sur ace water. Te
electric power industry generates 50 percent to 60 percent o the toxic pollutants discharged into sur ace water
by industries regulated under the Clean Air Act. Tis amount is expected to increase since recent air pollution
controls capture pollutants and trans er them to wastewater discharge. Tese toxic pollutants, which include
mercury, arsenic, selenium, nitrogen, and total dissolved solids, pose risks to human health, aquatic li e, wildli e,
and may contaminate sediment. A number o regulatory options were examined, with our pre erred regulatory
alternatives presented in the proposed rule. Tese alternatives differ in the requirements or discharge associated
with two waste streams rom existing sources.
Depending on the regulatory options, compliance costs are estimated to range rom $175 million to $972
million, while monetized benets may range rom $148 million to $513 million, generating net monetary costs
o $27 million to $459 million. Although the monetary costs are greater than the monetized benets, this rule
will produce substantial benets that are unable to be quantied. Te monetized benets included most o the
benets that were quantied and listed in the table below, plus reductions in IQ loss in children exposed to lead
via sh consumption, in utero mercury exposure via maternal sh consumption, mortality rom air pollutants,
and avoided climate change impacts rom carbon dioxide emissions. Reductions in non-cancer health effects dueto arsenic via sh consumption were quantied but not monetized.
Signicant, substantial benets regarding human health, ecological, and market benets were not able to be
quantied, but they are projected to provide signicant benets. Te overall benets o this rule are urther
underestimated because not all sources o exposure were examined. Reductions in exposure to toxins through
cleaner drinking water, as well as less consumption o contaminated vegetation and contaminated animals other
than sh, would urther increase the health benets o the rule. Additionally, the benets resulting rom the
establishment o best management practices were not included in the benets analysis, but they were included in
the cost estimate.
Te pre erred alternatives outlined in this proposed rule will result in signicant improvements or the
environment, ecosystem, wildli e, and public health in an economically achievable manner. Electric utility
companies are unlikely to ace economic impacts since compliance costs are estimated to be one percent or less
o their revenue. A very small number o companies are projected to incur the highest costs, up to three percent
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o revenue. Given the low compliance costs