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47033 PDF 2009
MIDNIGHT RULEMAKING: SHEDDING SOME LIGHT
HEARINGBEFORE THE
SUBCOMMITTEE ON
COMMERCIAL AND ADMINISTRATIVE LAW
OF THE
COMMITTEE ON THE JUDICIARY
HOUSE OF REPRESENTATIVESONE HUNDRED ELEVENTH CONGRESS
FIRST SESSION
FEBRUARY 4, 2009
Serial No. 1112
Printed for the use of the Committee on the Judiciary
(
Available via the World Wide Web: http://judiciary.house.gov
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(II)
COMMITTEE ON THE JUDICIARY
JOHN CONYERS, JR., Michigan, Chairman
HOWARD L. BERMAN, CaliforniaRICK BOUCHER, VirginiaJERROLD NADLER, New YorkROBERT C. BOBBY SCOTT, VirginiaMELVIN L. WATT, North CarolinaZOE LOFGREN, CaliforniaSHEILA JACKSON LEE, TexasMAXINE WATERS, CaliforniaWILLIAM D. DELAHUNT, Massachusetts
ROBERT WEXLER, FloridaSTEVE COHEN, TennesseeHENRY C. HANK JOHNSON, JR.,
GeorgiaPEDRO PIERLUISI, Puerto RicoLUIS V. GUTIERREZ, IllinoisBRAD SHERMAN, CaliforniaTAMMY BALDWIN, WisconsinCHARLES A. GONZALEZ, Texas
ANTHONY D. WEINER, New York ADAM B. SCHIFF, CaliforniaLINDA T. SANCHEZ, CaliforniaDEBBIE WASSERMAN SCHULTZ, FloridaDANIEL MAFFEI, New York[Vacant]
LAMAR SMITH, TexasF. JAMES SENSENBRENNER, JR.,
WisconsinHOWARD COBLE, North CarolinaELTON GALLEGLY, CaliforniaBOB GOODLATTE, VirginiaDANIEL E. LUNGREN, CaliforniaDARRELL E. ISSA, CaliforniaJ. RANDY FORBES, Virginia
STEVE KING, IowaTRENT FRANKS, ArizonaLOUIE GOHMERT, TexasJIM JORDAN, OhioTED POE, TexasJASON CHAFFETZ, UtahTOM ROONEY, FloridaGREGG HARPER, Mississippi
PERRY APELBAUM, Staff Director and Chief CounselSEAN MCLAUGHLIN, Minority Chief of Staff and General Counsel
SUBCOMMITTEE ON COMMERCIAL AND ADMINISTRATIVE LAW
STEVE COHEN, Tennessee, Chairman
WILLIAM D. DELAHUNT, MassachusettsMELVIN L. WATT, North CarolinaBRAD SHERMAN, CaliforniaDANIEL MAFFEI, New YorkZOE LOFGREN, CaliforniaHENRY C. HANK JOHNSON, JR.,
GeorgiaROBERT C. BOBBY SCOTT, VirginiaJOHN CONYERS, JR., Michigan
TRENT FRANKS, ArizonaJIM JORDAN, OhioDARRELL E. ISSA, CaliforniaJ. RANDY FORBES, VirginiaHOWARD COBLE, North CarolinaSTEVE KING, Iowa
MICHONE JOHNSON, Chief CounselDANIEL FLORES, Minority Counsel
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(III)
C O N T E N T S
FEBRUARY 4, 2009
Page
OPENING STATEMENTS
The Honorable Steve Cohen, a Representative in Congress from the Stateof Tennessee, and Chairman, Subcommittee on Commercial and Adminis-
trative Law ........................................................................................................... 1The Honorable Trent Franks, a Representative in Congress from the State
of Arizona, and Ranking Member, Subcommittee on Commercial and Ad-ministrative Law .................................................................................................. 18
WITNESSES
The Honorable Jerrold Nadler, a Representative in Congress from the Stateof New YorkOral Testimony ..................................................................................................... 22Prepared Statement ............................................................................................. 24
Mr. Robert F. Kennedy, Jr., Chairman, Waterkeeper AllianceOral Testimony ..................................................................................................... 26Prepared Statement ............................................................................................. 30
Dr. Gary D. Bass, Ph.D., Executive Director, OMB WatchOral Testimony ..................................................................................................... 177Prepared Statement ............................................................................................. 179
Ms. Lynn Rhinehart, Associate General Counsel, AFL-CIOOral Testimony ..................................................................................................... 198
Prepared Statement ............................................................................................. 200Dr. Veronique de Rugy, Ph.D., Senior Research Fellow, Mercatus Centerat George Mason UniversityOral Testimony ..................................................................................................... 209Prepared Statement ............................................................................................. 211
Mr. Michael Abramowicz, Professor, George Washington University LawSchoolOral Testimony ..................................................................................................... 236Prepared Statement ............................................................................................. 237
Dr. Curtis W. Copeland, Ph.D., Specialist in American National Government,Government and Finance Division, Congressional Research ServiceOral Testimony ..................................................................................................... 243Prepared Statement ............................................................................................. 245
LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARING
Letter from the Competitive Enterprise Institute and FreedomWorks, sub-mitted by the Honorable Steve Cohen, a Representative in Congress fromthe State of Tennesse, and Chairman, Subcommittee on Commercial and
Administrative Law ............................................................................................. 3Prepared Statement of Earthjustice, submitted by the Honorable Steve
Cohen, a Representative in Congress from the State of Tennesse, andChairman, Subcommittee on Commercial and Administrative Law ............... 4
Prepared Statement of the Honorable Trent Franks, a Representative inCongress from the State of Arizona, Member, Committee on the Judiciary,and Ranking Member, Subcommittee on Commercial and AdministrativeLaw ........................................................................................................................ 19
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IV
Prepared Statement of the Honorable John Conyers, Jr., a Representativein Congress from the State of Michigan, Chairman, Committee on theJudiciary, and Member, Subcommittee on Commercial and AdministrativeLaw ........................................................................................................................ 21
Article from The Des Moines Register, dated Tuesday, May 14, 2002, sub-mitted by the Honorable Steve King, a Representative in Congress fromthe State of Iowa, and Member, Subcommittee on Commercial and Adminis-trative Law ........................................................................................................... 162
Article from The Des Moines Register, dated April 10, 2002, submitted bythe Honorable Steve King, a Representative in Congress from the Stateof Iowa, and Member, Subcommittee on Commercial and AdministrativeLaw ........................................................................................................................ 164
APPENDIX
MATERIAL SUBMITTED FOR THE HEARING RECORD
Prepared Statement of David M. Mason, Visiting Senior Fellow, The HeritageFoundation, submitted by the Honorable Trent Franks, a Representative
in Congress from the State of Arizona, and Ranking Member, Subcommitteeon Commercial and Administrative Law ........................................................... 266
Article from Consumer Freedom, submitted by the Honorable Steve King,a Representative in Congress from the State of Iowa, and Member, Sub-committee on Commercial and Administrative Law ......................................... 271
Response to Post-Hearing Questions from Robert F. Kennedy, Jr., Chairman,Waterkeeper Alliance ........................................................................................... 272
Response to Post-Hearing Questions from Gary D. Bass, Ph.D., ExecutiveDirector, OMB Watch .......................................................................................... 276
Response to Post-Hearing Questions from Lynn Rhinehart, Associate GeneralCounsel, AFL-CIO ................................................................................................ 282
Response to Post-Hearing Questions from Veronique de Rugy, Ph.D., SeniorResearch Fellow, Mercatus Center at George Mason University .................... 286
Response to Post-Hearing Questions from Michael Abramowicz, Professor,George Washington University Law School ....................................................... 296
Response to Post-Hearing Questions from Curtis W. Copeland, Ph.D., Spe-cialist in American National Government, Government and Finance Divi-sion, Congressional Research Service ................................................................. 300
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MIDNIGHT RULEMAKING:SHEDDING SOME LIGHT
WEDNESDAY, FEBRUARY 4, 2009
HOUSE OF REPRESENTATIVES,SUBCOMMITTEE ON COMMERCIAL
ANDADMINISTRATIVE LAW,COMMITTEE ON THE JUDICIARY,
Washington, DC.
The Subcommittee met, pursuant to notice, at 11:10 a.m., inroom 2141, Rayburn House Office Building, the Honorable SteveCohen (Chairman of the Subcommittee) presiding.
Present: Representatives Cohen, Watt, Maffei, Franks, Coble,Issa, Smith, and King.
Mr. COHEN. This hearing of the Judiciary Committees Sub-committee on Commercial and Administrative Law will now cometo order.
Without objection, the Chair will be authorized to declare a re-cess of the hearing.
I would like to begin by welcoming everyone to the first hearingof the Subcommittee in the 111th Congress. In particular, I wishto extend warm regards to the Ranking Member of the Sub-
committee, Mr. Franks, who I look forward to working with. Prettymuch look forward to working with all the Members of the Sub-committee on both sides of the aisle. And would like to be wel-coming our new Member, Mr. Maffei, who is not here yet.
I will now recognize myself for a short statement.Despite the fact that many aspects of the Bush administration
were winding down operations after the November 4, 2008 election,administrative agencies were ramping up their rulemaking.
A flurry of regulatory activity went on between the Novemberpresidential election and inauguration day, with the former Admin-istration attempting to make a final impact.
This midnight regulation period is a time without political ac-countability, where controversial actions will not cost the Adminis-trations party votes.
Under the cover of darkness, the Bush administration used themidnight regulatory period to promulgate numerous regulationsthat run counter to statutory mandates and the public interests.
Other Administrations, Democrat, as well, have done the same,and each are wrong.
Midnight rulemaking has been criticized as an effort of an out-going Administration to tie the hands of the next Administration.While the tactic of flooding the Federal Register at the end of an
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Administration has been used by Presidents of both parties, theseregulations recently experienced through this Bush administrationhave been particularly troubling.
I have both procedural and substantive concerns about the Bushadministrations use of midnight rulemaking. Regulatory expertsacross the political spectrum agree that the hurried process of mid-night rulemaking leads to inherently flawed policy.
During the end of the Bush administration, agencies reportedlycut corners and administrative procedure by rushing regulationsthrough the system without proper regulatory review.
In the case of many of the most significant rules, the public com-ment period was abridged. Significant public comments were ig-nored, and acceptable rulemaking practices were tossed aside.
The Administrations desire to make it more difficult to revokecontroversial rules led to other questionable tactics.
In an effort to ensure that the rules would go into effect prior
to inauguration day, the Administration reportedly categorized sev-eral significant rules as minor, as opposed to major, so that theireffective dates would be 30 days after publication in the Federalregister rather than 60 days.
A memo issued by then White House Chief of Staff JoshuaBolton in May 2008 announced the end of midnight regulations,stating that except in extraordinary circumstances, final regula-tions should be issued no later than November 1, 2008.
Nevertheless, the Bolton memorandum was brushed aside by theBush administration, and dozens of controversial regulations wentwell beyond that deadline.
These included regulations on the environment, civil rights,workplace safety, opportunities to study medical marijuana, abor-tion rights, regulatory preemption, and online gambling.
Instead of implementing midnight regulations only in extraor-
dinary circumstances, midnight regulations were used as partinggifts to favorite industries of political interests.As several of our witnesses will recount today, the impact of mid-
night regulations on individuals, businesses, workers, science andthe environment is profound.
When regulations jeopardize public health, safety and welfare,Congress has a duty to respond. This hearing today will explorewhether the Congressional Review Act, the appropriations processor an approach like Mr. Nadlers legislation, H.R. 34, is the bestway to proceed.
Although we are transitioning to a new era, Congress and theAmerican people have an obligation to examine and rectify wreck-age left behind by the Bush administration, including those egre-gious midnight regulations.
For the comfort of the minority party, I want them to know that
I plan to introduce and will introduce into the record, without ob- jection, a statement from a very much nonpartisan and, I think,conservative group, the Competitive Enterprise Institute, that spe-cifically requests that all of our actions look in a bipartisan mannertoward this Administration and future Administrations and makessure that what is good for the goose is good for the gander.
And I certainly concur in that and would like to enter the Free-dom Works letter of February 3 into the record, as well as a state-
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ment from Earth Justice, that was asked to be a witness, but wasunable to be included in our list of witnesses, and include its state-ment, with unanimous consent, into the record.
[The information referred to follows:]
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Mr. COHEN
. With those preliminary remarks, I would like to rec-ognize my colleague, Mr. Franks, the distinguished Ranking Mem-ber of the Subcommittee, and whose Cardinals came close to aSuper Bowl championship, for his opening remarks.
Mr. FRANKS. Well, thank you, Mr. Chairman. I am just gratefulto be here this morning. I am grateful to be here with you as theSubcommittee on Commercial and Administrative Law meets forthe first time.
I want to congratulate you on becoming the Chairman of thisSubcommittee, and I want to warmly welcome our witnesses, if itso happens, and certainly welcome the opportunity to begin ourconsideration of the administrative law issues during this Con-gress.
The Commercial and Administrative Law Subcommittee spentnext to no time on administrative law last term. The Subcommitteespent more time on commercial law, but still that is not what ab-
sorbed the majority of the Subcommittees attention.Instead, the Subcommittee spent the greatest portion of its time
on bashing the Bush administration and the Bush administrationsDepartment of Justice.
Mr. Chairman, I hope today that we can turn a new page andthat Presidents of both parties and Presidents in most modern Ad-ministrations, of course, we recognize that they have promulgatedan increased number of regulations during their final months in of-fice.
In fact, it was Jimmy Carter whose Administrations end-of-termactivity gave birth to the phrase midnight regulations. And Presi-dent Clinton published even more.
The George W. Bush administration, looking back on the Clintondebacle, took some concerted and constructive steps to introduceorder into the end-of-term process.
It called for all new regulations planned for the last part of itstenure to be proposed by June 1, 2008 and it called for all of theseregulations to be promulgated by November 1, 2008.
The Bush administrations policy provided for exceptions andsome exceptions, in the end, were made. But on the whole, theprocess was more orderly than the chaos that attended the finaldays of the Clinton administration.
Accordingly, I hope we wont spend our time on bashing the Bushadministration for doing less of what all recent Administrationshave done. Let us instead devote ourselves to the more importanttask.
Presidents are elected for 4 years, and unless we are to craft pro-hibition for all regulatory activity during a second term, we shoulduse this hearing as an opportunity to begin to build upon the im-provements to the regulatory process that the Bush administration
undertook, building on the improvements of previous Administra-tions.Let us, therefore, ask how can we reform the entire regulation-
writing process, because midnight regulations are just one symp-tom of a dysfunctional and outdated administrative law systemgoverned by the 63-year-old Administrative Procedure Act.
Throughout the process of writing regulations, we need to im-prove procedures. We need to ensure, first, universal and better
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cost-benefit analyses; sounder science; more transparency; betterpublic participation; more negotiated rulemaking; rights of the Fedto support e-rulemaking; stronger review of the agencys regulatorydevelopment processes; and, an end to the proliferation of sup-posedly nonbinding guidance that seeks to make an end run on therequirements of rulemaking.
These are just some of the improvements that we can make tothe rulemaking process that governs so much of the Federal Gov-ernments lawmaking activity.
If we can progress on these improvements, we will reduce thecontroversy over end-of-administration rulemaking by bringingmore transparency and objectivity into the entire rulemaking proc-ess, no matter when it occurs during the course of any Administra-tion.
Other reforms include improving our review of agency regula-
tions under the Congressional Review Act, and, of course, above all,Congress can dedicate itself anew to writing clearer, more detailedand more definitive statutes.
In this way, Congress can better exercise the policymaking au-thority entrusted to it by the Constitution and not transfer that au-thority excessively to administrative agencies, which are account-able only to the people in indirect ways through the President or,in the case of so-called independent agencies, even more indirectly.
In the 108th and the 109th Congresses, we considered those top-ics so important that we embarked on a new special project, the
Administrative Law Process and Procedure Project for the 21stCentury.
This project generated a number of good proposals. We have yetto conclude our important work in this area. Yet, the 21st centurymarches on, Mr. Chairman, and the burden of regulations imposed
under an outdated system grows.And so, sir, again, I am glad that we are here today and that thetopic of administrative law is the first of which we turn in thisterm. And I hope that this will be a fruitful field of bipartisan en-deavor in this term, and I look forward to working with you.
Thank you.Mr. COHEN. I thank the gentleman for his statement.Without objection, other Members statements, opening state-
ments, will be included in the record. And I want to assure the gentleman, as I did in my opening
statement, that I do want this to be bipartisan and to look at thefuture to all Administrations.
[The prepared statement of Mr. Franks follows:]
PREPARED STATEMENT OF THE HONORABLE TRENT FRANKS, A REPRESENTATIVE INCONGRESS FROM THE STATE OFARIZONA, MEMBER, COMMITTEE ON THE JUDICIARY,
AND RANKING MEMBER, SUBCOMMITTEE ON COMMERCIAL AND ADMINISTRATIVELAW
Mr. Chairman, it is a pleasure to be here with you today as the Subcommitteeon Commercial and Administrative Law meets for the first time in the 111th Con-gress. I extend a warm welcome to our witnesses. And I welcome the opportunityto begin our consideration of administrative law issues during this Congress.
The Commercial and Administrative Law subcommittee spent next to no time onadministrative law last term. The Subcommittee spent more time on commerciallaw, but still, that is not what absorbed the majority of the Subcommittees atten-
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tion. Instead, the Subcommittee spent the greatest portion of its time on bashing
the Bush Administration and the Bush Administrations Department of Justice.Mr. Chairman, I hope that today we can turn a new page. Presidents of both par-
ties, and Presidents in most modern administrations, have promulgated an in-creased number of regulations during their final months in office.
In fact, it was President Jimmy Carter whose administrations end-of-term activ-ity gave birth to the phrase midnight regulations. And President Clinton pub-lished even more.
The George W. Bush Administration, looking back on the Clinton debacle, tooksome concerted and constructive steps to introduce order into the end-of term proc-ess. It called for all new regulations planned for the last part of its tenure to beproposed by June 1, 2008. And it called for all of these regulations to be promul-gated by November 1, 2008.
The Bush Administrations policy provided for exceptions, and some exceptions, inthe end, were made. But on the whole, the process was more orderly than the chaosthat attended the final days of the Clinton Administration.
Accordingly, lets not spend our time bashing the Bush Administration for doingless of what all recent administrations have done. Let us instead devote ourselvesto a more important task. Presidents are elected for four years, and unless we are
to craft a prohibition on all regulatory activity during a second term, we should usethis hearing as an opportunity to begin to build upon the improvements to the regu-latory process that the Bush Administration undertook, building on the improve-ments of previous administrations. Let us therefore ask: How can we reform theentire regulation-writing process? Because midnight regulations are just one symp-tom of a dysfunctional and outdated administrative law system, governed by the 63-year-old Administrative Procedure Act.
Throughout the process of writing regulations, we need to improve procedures. Weneed to insure:
universal and better cost-benefit analysis;
sounder science;
more transparency;
better public participation;
more negotiated rulemaking;
widespread e-rulemaking;
stronger review of the agencies regulatory development processes; and
an end to the proliferation of supposedly non-binding guidance that seeksto make an end run on the requirements of rulemaking.
These are just some of the improvements that we can make to the rulemakingprocess that governs so much of the federal governments law-making activity. If wecan make progress on these improvements, we will reduce the controversy over end-of-administration rule-makings by bringing more transparency and objectivity to theentire rule-making process, no matter when it occurs during the course of any ad-ministration.
Other worthy reforms include improving our review of agency regulations underthe Congressional Review Act. And, of course, above all, Congress can dedicate itselfanew to writing clearer, more detailed, and more definitive statutes. In this way,Congress can better exercise the policy-making authority entrusted to it by the Con-stitutionand not transfer that authority excessively to administrative agencies ac-countable to the people only indirectly through the President or, in the case of so-called independent agencies, even more indirectly.
In the 108th and 109th Congresses, we considered these topics so important thatwe embarked on a special project, the Administrative Law, Process, and ProcedureProject for the 21st Century. This project generated a number of good proposals. We
have yet to conclude our important work in this area. Yet the 21st Century marcheson, and the burden of regulations imposed under an outdated system grows.So Mr. Chairman, again, I am glad that we are here today, and that the topic
of administrative law is the first to which we turn this term. I hope that this willbe a fruitful field of bipartisan endeavor this term, and I look forward to workingwith you.
[The prepared statement of Mr. Conyers follows:]
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PREPARED STATEMENT OF THE HONORABLE JOHN CONYERS, JR., A REPRESENTATIVEIN CONGRESS FROM THE STATE OF MICHIGAN, CHAIRMAN, COMMITTEE ON THE JUDI-CIARY, AND MEMBER, SUBCOMMITTEE ON COMMERCIAL AND ADMINISTRATIVE LAW
Let me first thank Steve Cohen, the new Chairman of the Subcommittee on Com-mercial and Administrative Law, for holding this timely hearing on the issue of so-called midnight rules.
No issue within the Subcommittees jurisdiction is now more important. Regula-tions issued during the final weeks of the Bush Administration may have a lastingimpact on the environment, on civil liberties at home and abroad, on the wages andworking conditions of U.S. workers, on highway safety, and on many other mattersof concern to the American people.
We will hear from seven distinguished and knowledgeable witnesses at todayshearing. Im interested in hearing their views on the following three issues:
First, is the Bush Administrations record on midnight rulemaking subject to criti-cisms that its predecessors records are not? In particular:
Did the Bush Administration strategically issue midnight rules in an attemptto avoid meaningful public and Congressional scrutiny of its controversialpolicies?
Did the Bush Administrations midnight rulemaking depart from well-estab-lished regulatory practices and procedures?
Did the Bush Administrations midnight rulemaking favor special interestsover the public interest, in a way that earlier administrations midnight rulesdid not?
Second, when and why should we be concerned about midnight ruleswhetherthey spring from a Democratic or a Republican administration? Is midnight rule-making an undesirable way to make public policy?
And third, should Congress pass legislation governing midnight rulemaking? Ordoes Congress already have at its disposal effective tools to deal with objectionablemidnight rules, including resort to the Congressional Review Act and appropriationsrestrictions? If legislation is needed, what particular form should it take? I espe-cially look forward to hearing Jerry Nadlers views on that last question.
Thank you, again, Chairman Cohen.
Mr. COHEN. I am now pleased to introduce the witness for ourfirst panel for todays hearing, the Honorable Representative
Jerrold Nadler.Congressman Nadler represents New Yorks 8th congressionaldistrict, which includes Manhattans west side below 89th, and Iguess down to the battery; also, areas of historic Brooklyn.
Congressman Nadler was first elected to the House in 1992, afterserving 16 years in the New York State Assembly. In 2004, he waselected with a resounding 80 percent of the vote.
Throughout his career, he has championed civil rights, civil lib-erties, efficient transportation, and a host of progressive issues,such as access to health care, support for the arts, and the protec-tion of the Social Security system.
He is a voice for the voiceless. In his roles as an assistant whipand a senior Member of both the House Judiciary and Transpor-tation Committees, Congressman Nadler has the opportunity on adaily basis to craft and shape the major laws that govern our coun-
try.He currently serves as Chairman of the Constitution, CivilRights and Civil Liberties Subcommittee of Judiciary, which con-siders all proposed constitutional amendments and deals with suchissues as freedom of expression, religious freedom, privacy, dueprocess, civil rights, reproductive choice, and lesbian, gay, bisexualand transgender rights.
Thank you for your willingness to participate in todays hearing.
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And although I am sure you know the procedure, I will go overit for the benefit of our other witnesses.Without objection, your written statement will be placed into the
record, and we would ask that you limit your oral remarks to 5minutes. We have a lighting system with a green light, which isfor go. At 4 minutes, it turns yellow, which is like the 2-minutemark in the NFL. Then at the 5-minute mark, you get a red light,which means you are about at the end of your testimony.
After each witness has presented his or her testimony, Sub-committee Members will be allowed to ask you questions, subjectto the 5-minute limit.
After Mr. Nadler testifies, we might have votes, and we are goingto try to take into consideration Mr. Kennedys schedule and havehim, without any objection, be our first witness and have questionsof him so he can make an airplane and have time to catch a fasttrain. Get me a ticket back to New York.
Mr. Nadler, will you proceed with your testimony?
TESTIMONY OF THE HONORABLE JERROLD NADLER, A REP-RESENTATIVE IN CONGRESS FROM THE STATE OF NEW
YORK
Mr. NADLER. Thank you, Mr. Chairman, Ranking MemberFranks, and my fellow Members of the Judiciary Committee.
I appreciate the opportunity to testify before you today on thisvery important issue.
The problem of midnight rules is not a new one, but the practiceis prone to abuse and undercuts our democratic process.
That is why, on the first day of this Congress, I reintroduced theMidnight Rule Act, H.R. 34, which would allow incoming agencyheads to prevent rules adopted within the last 3 months of the pre-
vious Administration from going into effect.This legislation lays out an approach to enable an incomingPresident to deal with midnight rules without tying him up formonths or years and preventing him from implementing his agendaor her agenda.
When the President rushes to finalize regulations in advance ofan incoming Administration, especially during the lame-duck pe-riod, that President binds the hands of his successor for 6 monthsto as long as 2 years.
This can be accomplished with minimal political accountabilityby the outgoing President or by the Presidents party, whose mem-bers hope to retain some of their jobs.
In this way, midnight rules differ from other executive actions,such as executive orders, which the new President can change, ifhe wishes, upon assuming office.
The conduct of the outgoing Bush administration has highlightedthe problem in several ways. First, the Bush administration rushedmany rules through the process at an accelerated pace. This wasfacilitated by a memo issued by the White House chief of staff,Josh Bolton, on May 9, 2008.
It instructed agencies to finalize regulations by November 1, ena-bling the outgoing Administration to put in place regulations justprior to the swearing in of the new President.
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The results of the Bolton memo are clear. In October and Novem-ber of last year, Federal agencies submitted 30 major rules, thatis, those with an economic impact of at least $100 million each, tothe Government Accountability Office.
During the same period in 2007, that number was only 13. Thisrepresents an increase over 1 year of 130 percent.
Similarly, the number of significant rules submitted to the Officeof Information and Regulatory Affairs September 1, 2008 and De-cember 31, 2008 represents an increase of 102 percent in the sameperiod in 2007, 190 significant final rules as opposed to 94 suchrules the year before.
Second, lack of accountability in its waning weeks enabled the Administration to adopt the highly controversial rules on familyplanning, endangered species and global warming, that may nothave passed muster in the more public debate. But since there was
no more public accountability, no election to look forward to, theycould do what they wanted and bind the hands of the new Admin-istration.
Finally, these midnight rules allow the Administration to extendits policies well into the next Administration, despite the fact thatthe voters voted to move in a new direction.
The Midnight Rule Act would address this problem in severalways. It would give a new agency head a limited period of time toreview and act on regulations adopted in the final 90 days of aPresidents term.
The new agency head would have 90 days after being confirmedto his office or her office to disapprove a midnight rule by pub-lishing a statement of disapproval in the Federal Register andsending a notice of disapproval to the congressional Committee orCommittees of jurisdiction.
In order to address emergencies, limited exceptions are providedin cases of an imminent threat to health or safety, enforcement ofcriminal laws, implementation of an international trade agreement,and national security.
Congress could revoke some of these rules under the Congres-sional Review Act. However, the Congressional Review Act requiresindividual votes on each rule.
Given the sheer number of midnight rules issued by the Bush ad-ministration or perhaps by Administrations in the future, thiswould require more time than Congress has available, while we aretrying to pass an economic recovery package, finalize FY 2009 ap-propriations bills, and prepare for a new budget for the upcomingfiscal year.
Most importantly, this proposal would place a check on midnightrules. The American people have a right to hear the views of can-
didates for President and other offices on very important issues,and then to be governed by the choice that they make in the elec-tion, and not to be governed by the dead hand of the choice theymade 4 or 8 years earlier.
The American people are entitled to alter the direction of theirgovernment based on new circumstances or even to change theirminds, if they wish. That is why we have a new presidential elec-tion every 4 years, and that is why the policies of the old outgoing
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Administration should not be permitted to continue and to bind thenew incoming Administration for 6 months to 2 years.I have received many helpful comments and suggestions on ways
to clarify this legislation and I hope to work with my colleagues tofine-tune it.
The core policy is that the will of the electorate should not befrustrated in effectuating new policy by the old Administration.
Voters have a right to debate critical issues in the selection of theirrepresentatives and to have their choices implemented after theelectoral process is finished.
Thank you again for the opportunity to testify today and I lookforward to working with you all to comprehensively address thisproblem in the days ahead.
[The prepared statement of Mr. Nadler follows:]
PREPARED STATEMENT OF THE HONORABLE JERROLD NADLER, A REPRESENTATIVE INCONGRESS FROM THE STATE OF NEWYORK
Thank you, Mr. Chairman, Ranking Member Franks, and my fellow members ofthe Judiciary Committee. I appreciate the opportunity to testify before you today onthis very important issue.
The problem of midnight rules is not a new one, but the practice is prone to abuseand undercuts our democratic process.
That is why, on the first day of this Congress, I reintroduced the Midnight Rule Act, H.R. 34, which would allow incoming Agency heads to prevent rules adoptedwithin the last three months of the previous administration from going into effect.
This legislation lays out an approach to enable an incoming president to deal withmidnight rulesthat is, rules finalized, or which took effect, at the very end of hispredecessors termwithout tying up the new president for months or years tryingto implement his agenda.
The 22nd Amendment to the Constitution limits a president to two terms in office.Midnight rules can be abused to allow a president to reach into a third term withoutany accountability.
Past presidents have used the final weeks of their terms to take actions, or ad-vance policies, that would be politically difficult prior to an election. It is a traditiongoing back to the earliest days of the Republic.
When a president rushes to finalize regulations in advance of an incoming admin-istration, especially during the lame duck period, that president binds the hands ofhis successor for six months to as long as two years. This can be accomplished withminimal political accountability by the presidentwho is leaving officeor by thepresidents party, whose members hope to retain their jobs.
In this way, midnight rules differ from other executive actions, such as executiveorders, which a new president can change upon assuming office.
The conduct of the outgoing Bush administration really highlighted the problemin several ways.
First, the Bush administration rushed many rules through the process at an ac-celerated pace. This was facilitated by a memo issued by the White House Chief ofStaff, Josh Bolten, on May 9th, 2008. It instructed agencies to finalize regulationsby November 1st, enabling the outgoing administration to put in place regulations
just prior to the swearing-in of the new President.The results of the Bolton memo are clear. In October and November of 2008, fed-
eral agencies submitted 30 major rules (those with an economic impact of at least$100 million), to the Governmental Accountability Office. During the same periodin 2007, that number was only 13. This represents an increase of 130%.
Similarly, the number of significant rules submitted to the Office of Informationand Regulatory Affairs increased by 102% between September 1, 2008 and Decem-ber 31, 2008 over the same period in 2007 (190 significant final rules as opposedto 94 such rules the year before).
Second, the lack of accountability in its waning weeks enabled the Bush adminis-tration to adopt highly controversial rules that may not have passed muster in amore public debate.
These midnight rules adopted by the Bush Administration will, among otherthings, curtail access to family planning services, and even to information about re-productive health options; weaken enforcement of the Endangered Species Act withrespect to federal projects which might threaten endangered species; allow the agen-
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cies to bypass reviews of global warming and potential ecological impacts; and allow
mining companies to dump toxic waste without concern for environmental harm.Finally, these midnight rules allow the Administration to extend its policies well
into the new administration despite the fact that the voters have voted to move ina new direction.
The Midnight Rule Act would address this problem in several ways.It would give a new agency head a limited period of time to review and act on
regulations adopted in the final 90 days of a presidents term. The new agency headwould have 90 days after being appointed to disapprove a midnight rule by pub-lishing a statement of disapproval in the Federal Register, and sending a notice ofdisapproval to the congressional committees of jurisdiction.
In order to address emergencies, limited exceptions are provided in cases of animminent threat to health or safety, enforcement of criminal laws, implementationof an international trade agreement and national security.
Congress could revoke some of these rules under the Congressional Review Act.However, the CRA would require individual votes on each rule. Given the sheernumber of midnight rules issued by the Bush Administration, this would requiremore time than Congress has available while we are trying to pass an economic re-covery package, finalize FY2009 appropriations bills, and prepare for a new budget
for the upcoming fiscal year.The Midnight Rule Act would give the new administration the opportunity to re-view carefully the last minute handiwork of its predecessor. Rulemaking is, in thefirst instance, a function of the executive. Congress and the courts would still retaintheir authority to act as a check on the executive.
Most importantly, this proposal would place a check on midnight rules. The Amer-ican people have a right to hear the views of candidates for president and other of-fices on these very important issues and then to be governed by the choice theymade in the election, and not by the dead hand of a choice they made four yearsearlier. The American people are entitled to alter the direction of their governmentbased on new circumstances, or even to change their minds. That is why we havea new presidential election every four years.
I have received many helpful comments and suggestions on ways to clarify thislegislation, and I hope to work with my colleagues to fine tune it.
The core policy is that the will of the electorate should not be frustrated in effec-tuating new policy. Voters have a right to debate critical issues in the selection oftheir representatives and to have those choices realized though the electoral process.
Thank you again for the opportunity to testify today, and I look forward to work-ing with you all to comprehensive address this problem in the days ahead.
Mr. COHEN. Well, I thank the gentleman for his statement.The Chair does not have a question of Mr. Nadler and would en-
tertain questions from the Subcommittee. If not, we could proceedto have the second panel come forward and Mr. Kennedy could givehis remarks first, and then he could catch his airplane.
Without objection, can we let Mr. Nadler go?Mr. NADLER. Thank you.Mr. COHEN. Let my person go. Thank you.If the second panel would come up, we are going to forego the
traditional introductions of the entire panel for purposes of tryingto accommodate the airplane schedule that Mr. Kennedy has, intro-duce him, have his statement and have questions from the panel.
Our second witness is Robert F. Kennedy, Jr. Mr. Kennedy is
credited with leading the fight to protect New York Citys watersupply, but his reputation as a resolute defender of the environ-ment stems from a litany of successful legal actions.
The list includes winning numerous settlements for Riverkeeper,prosecuting governments and companies for polluting the HudsonRiver and Long Island Sound, arguing cases to expand citizen ac-cess to the shoreline, and suing treatment plants to force compli-ance with the Clean Water Act.
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Mr. Kennedy acts as chief prosecuting attorney for Riverkeeper.He also serves as senior attorney for the National Resources De-fense Council. And I may say his name, in addition to the polarbear, forced me to write a check occasionally. And is the President,also, of the Waterkeeper.
At Pace University School of Law, he is a clinical professor andsupervising attorney at the Environmental Litigation Clinic inWhite Plains, New York.
Earlier in his career, he served as assistant DA in New YorkCity; published several books, including The Riverkeepers (1997),with John Cronin. His articles have appeared in The New YorkTimes, The Atlantic Monthly, The Wall Street Journal, Esquire, TheVillage Voice, The Washington Post, et cetera.
He has been on radio, Air America, with Ring of Fire. Andhe is the father of six children, and he hopes to leave an earthsimilar to the one that he has had the opportunity to inhabit.
Mr. Kennedy, thank you for coming to our Subcommittee.
TESTIMONY OF ROBERT F. KENNEDY, JR., CHAIRMAN,WATERKEEPER ALLIANCE
Mr. KENNEDY. Thank you, Mr. Chairman, and all the Membersof the Committee and my fellow panelists. Thanks for taking intoaccount my travel schedule.
I have filed extensive comments with the Committee, goingthrough the dozens of midnight regulations passed by the Bush ad-ministration over the past couple of months that impact the envi-ronment.
I am going to focus on four of those today very, very quickly, be-cause these are regulations that we think should be seriously con-sidered by your Committee and by Congress for review under theCongressional Review Act.
Also, we strongly support the passage of Congressman Nadlersproposed legislation, which could deal with some of these problems. Very briefly, the Endangered Species Act waiver, which waives
the Endangered Species Act requirement for the Pentagon, for theEnergy Department, for all other government agencies to engage inconsultations with National Marine Fisheries and Fish and WildlifeService when they are going to engage in an action that is goingto harm one of these species.
Number two, the hazardous waste regulation, which exemptsthree million tons of most highly toxic hazardous waste from regu-lation under RCRA. It is clear that this is going to significantlydamage public health if we allow this to continue.
Number three, the CAFO rules. CAFOs are factory farms, theworst single polluters of water in America today. They produce 500million tons of waste every year.
Smithfield Foods has one facility, called the Circle Four, in Utah,which has 850,000 hogs. It produces more waste than all thehuman beings in New York City combined every day.
New York City has spent about $20 billion building sewage treat-ment plants to treat its waste so that it doesnt pollute the HudsonRiver and its environs. Smithfield simply dumps that waste intothe environment. It is illegal. They have been able to corrupt publicofficials in order to get away with this.
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They cannot produce a pound of pork or a pound of bacon or apork chop cheaper and more efficiently than a family farmer, a tra-ditional farmer, unless they break the law, unless they shift theircleanup costs to the public. Their cleanup costs are much greaterthan those that accrue on traditional farms.
The Raleigh News and Observer, in 1993, won the PulitzerPrize for a five-part series that showed how factory farmers hadcorrupted virtually every relevant official in the state to get themto overlook the pollution from these facilities.
Their whole business contemplates illegal behavior and their ca-pacity to avoid enforcement of that. They were easily able to dothat during the Bush administration, which was willing to overlookthis illegal and corrupt behavior that was damaging communities,the environment, putting family farmers out of work.
Now, the Bush administration has institutionalized that lack of
enforcement through this bill.Finally, the buffer zone rule, and this, to me, is the most impor-tant one, Mr. Chairman. This is the rule that is the last barrierthat imposed any controls at all on mountaintop removal.
A couple of weeks ago, I flew over to Cumberland and I sawif the American people could see what I saw in West Virginia andeastern Kentucky, there would be a revolution in this country.
We are literally cutting down the Appalachian Mountains, thesehistoric landscapes where Daniel Boone and Davy Crockett roamed,with these giant machine called draglines, which are 22 storieshigh.
I flew under one of them in a Piper Cub. They cost a half billiondollars and they practically dispense with the need for humanlabor, which indeed is the point.
I remember a conversation I had with my father when I was 14
years old, during the 1960s, when he was fighting strip mining in Appalachia. And he said to me, They are not just destroying theenvironment, but they are permanently impoverishing these com-munities, because there is no way that they can regenerate aneconomy from these landscapes that are left behind.
And he said, They are doing it so they can break the unions,and that is exactly what they did. When he told me that, therewere 140,000 unionized mine workers in West Virginia digging coalout of tunnels in the day. Today, there are fewer than 11,000 min-ers left in the state. Almost none of them are unionized, becausethe strip industry isntthey are taking more coal out of West Vir-ginia than they were in 1968.
The only difference is back then, at least some of that money wasbeing left in the state for salaries, for pensions, for reinvestmentin the communities. Today, it is all going straight up to Wall Street
to the corporate headquarters of Massey Coal, Peabody Coal, ArchCoal, and the big banking houses, like Bank of America and Mor-gan, which own these operations.
Ninety-five percent of the coal in West Virginia are owned byout-of-state operations, mainly on Wall Street. They are liquidatingthe state for cash, using these giant machines, 2,500 tons of explo-sives that they detonate every day in the state of West Virginia,the equivalent of a Hiroshima bomb once a week.
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They are blowing the tops off the mountains to get at the coalseams beneath. Then they take the rock, debris and rubble andthey plow it into the adjacent river valley.
The bury the rivers, they flatten the hollows. They have alreadyburied, according to EPA, 1,200 miles of rivers and streams. Theyhave cut down the 460 biggest mountains in West Virginia.
By the time they get done, within a decade, they will have flat-tened an area the size of Delaware.
It is all illegal. You cannot, in the United States, take rock, de-bris and rubble and dump it into a waterway without a CleanWater Act permit, and you could never get a permit to do such athing.
So we sued them, the environmental community, Joe Lovett,Kentuckians for the Commonwealth, in front of a conservative re-publican Federal judge, Judge Charles Haden. And Judge Haden
said the same thing I did.In the middle of that hearing, Judge Haden questioned the Corpsof Engineers colonel who had allowed all this to happen and saidto him, This is obviously illegal. How could you let this happen?
And the Corps colonel said to him, I dont know, Your Honor. Wejust kind of oozed into it.
And Judge Haden ended that hearing by giving us a completevictory by banning all mountaintop mining, saying it is illegal fromday one and it is illegal today, and he enjoined all of it.
Two days from when we got that decision, lobbyists for MasseyCoal and Peabody Coal met in the back door of the Interior Depart-ment with Stephen J. Griles, Gale Nortons first deputy chief, whowas a former lobbyist for Massey Coal and Peabody Coal, and whois now serving a 1012 month jail sentence, and they rewrote oneword, the interpretation of one word of the Clean Water Act, the
definition of the word fill, to change 30 years of statutory inter-pretation to effectively overrule Judge Hadens decision and allowmountaintop mining, allow the disposal of rock, debris, rubble, gar-bage, any solid material into any water body of the United Statesin all 50 states today.
One barrier that we were left with after this destruction thathappened from the Interior Department because of Griles was thestream buffer rule that said you cant dispose of the stuff within100 feet of a perennial or ephemeral stream.
These are the most important streams, because they feed thewhole watershed.
That law was left in place. And as a favor to the industry, in thelast days of the Bush administration, this White House, which wasthe indentured service for the worst of the worst of the worst ofthese polluters, simply got rid of that rule, the last barrier to cut-
ting down the entire Appalachian Mountains.Let me just say one final thing. During the Pleistocene ice age,where my home is in Mount Kisco, New York, it was under twomiles of ice and the rest of North America was turned into tundra,with no trees left.
The last refuge for those trees, they all retreated into one place,which was the Appalachian Mountains of West Virginia and east-ern Kentucky. That is where they survived the ice age.
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And when the ice withdrew, all of the forests in North Americawere reseeded from Appalachia. That is why it is the richest foreston earth, the richest ecosystem, temperate ecosystem on the faceof the earth, because it is the only one that survived the ice age.
And today, these companies, out of greed and ignorance, aredoing or accomplishing what the glaciers couldnt do, which is flat-tening those mountains and stealing our forests, and this Congressought to do something about it.
Thank you, Mr. Chairman.[The prepared statement of Mr. Kennedy follows:]
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PREPARED STATEMENT OF ROBERT F. KENNEDY, JR.
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ATTACHMENT 1
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