Regulatory Inefficiency

Jun 3, 2008

A few weeks ago we published a chart showing the complexity of near-crippling regulations proposed by the Climate Change Bill.  Well the game of regulatory hide-and-seek continues (we have seen completely different bills at subcommittee, full committee and now the floor) so we have had to issue a revised chart showing the regulatory structure of the Boxer/Lieberman/Warner Climate Change Bill.

The circles in blue are regulations.  Each regulation must undertake all of the procedures that are identified in the yellow section in the center. The black circles are the titles of the bill. All of the red circles are the mandates; some are studies, reports and some of these may turn into future regulations.

In total there are over 300 mandates and regulations in the bill.  If you compare this chart with the first chart on the old Lieberman/Warner bill the amount of new regulation being proposed is massive.  Moreover, each of the regulations when finalized is subject to being litigated under the Administrative Procedure Act.  The actual size of the chart is 4 feet by 5 feet with 12 and 8 point font, to get the full effect take your PDF viewer up to 100% and get ready to scroll like crazy.

This overwhelming regulatory structure would cost the average American household $1,000 to $6,700 annually, according to various economic studies.  One study estimated that the bill would result in two to four million lost jobs.  The business community wants to be a leader in crafting a logical plan to address climate change, and part of that leadership is pointing out that this is a bill which will take an enormous amount of manpower to implement, will delay action on climate change for years to come, and does nothing to advance the development and rapid deployment of new technologies. 

We are not going to regulate our way out of this problem, and ironically the Boxer Amendment may be our best ally in proving that point.  As the lack of regulatory clarity and resulting chaos becomes apparent hopefully our leaders will move from the "EPA shall" to the "United States will", and we can begin promoting and funding solutions, not building more obstructions.

Here is a compressed view of the Boxer Amendment.  Click for the full PDF.


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