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With prices so low, should the federal gas tax be raised to promote energy conservation and independence?

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CURRENT LETTER

 
The Kiplinger Washington Editors
Jan. 2, 2009
 

2009: A Rough Start
But a Better Finish

The recession will be painful through the first six months of the new year, but a recovery will start in the second half. This week’s Kiplinger Letter looks at the pluses and minuses of the economic picture and explains how you can tell when an improvement is close.
 
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Bush Tries to Polish His Regulatory Legacy

Last minute proposals on worker health and endangered species face a buzz saw from Democrats.
 
 

The Democrats and President Bush will clash over labor and environmental regulations until the very end of George W. Bush’s administration. Opponents are blasting what they say are last-minute efforts by the White House to undermine protections for workers and endangered species. Business interests hail the late-breaking rule initiatives.

At stake is the timing of rule changes for measuring worker exposure to hazardous toxins in industries such as mining, construction and chemicals. That's because going forward the Department of Labor (DOL) would develop new standards for each industry, rather than base safety levels on the accumulated effect of exposure over a worker's 45-year career, regardless of the industry. "Basing a worker's exposure on 45 years on the job is an archaic workplace model," says one business advocate.

The proposal would add a step in the regulatory process, allowing an additional round of challenges to agency risk assessments. The proposal would affect rules from the Occupational Safety and Health Administration and the Mine Safety and Health Administration.

The other proposal would weaken the Endangered Species Act, allowing agencies to approve private sector permits for disputed projects without consulting the Fish and Wildlife Service. The rule change would save firms time and money by reducing the duplication of paperwork. Affected industries include agriculture (particularly with the licensing of pesticides), construction, mining and logging operations.

Federal agencies could opt not to consult with the U.S. Fish and Wildlife Service before issuing requested permits for activity that might affect endangered or threatened species. Currently, such consultation is mandatory.

The proposed changes would also benefit power plants by reducing the odds they would be required to account for greenhouse gases as a potential threat to wildlife. In the wake of the Bush administration’s May listing of the polar bear as a threatened species, it seems apparent the White House is determined to prevent the Endangered Species Act from being used as a greenhouse gas measuring stick. Bush aims to finalize his changes to this act by year-end.

It's far too early to know whether the two new rules will be allowed to stand. Congressional Democrats argue the proposed changes to the Endangered Species Act are illegal. They're certain to hold hearings and may block appropriations necessary to finalize the changes. Environmental groups likely will go to court and try to prevent the regulation's implementation.

Meanwhile, legislation to prevent DOL's workplace toxin exposure rule from being implemented was introduced by Rep. George Miller (D-CA), chairman of the House Education and Labor Committee, and labor unions are sure to vociferously oppose it.

Even if the rules are put in place, a win by Democratic presidential candidate Barack Obama or a stunning takeover of Congress by the Democrats practically guarantees the rules would be scrutinized anew in the next administration and perhaps overturned, though that process would likely drag on for months.

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