Mr. President, I ask unanimous consent to speak as in morning business for approximately 20 minutes, and I probably will not use all of that time and will yield back. I thank the Chair. Executive Order on Regulations Mr. President, I rise…
Mr. President, I ask unanimous consent to speak as in morning business for approximately 20 minutes, and I probably will not use all of that time and will yield back.
I thank the Chair.
Executive Order on Regulations
Mr. President, I rise today to speak again about President Obama's January 18 Executive order that directed all Federal agencies within the administration to review or repeal those significant regulatory actions that are duplicative, overly burdensome, or would have a significant economic impact on ordinary Americans.
The President went on to say--I am paraphrasing from his words--they are costly, they are duplicative, in many cases they aren't necessary, we need to review them, and in some cases, actually, they are stupid. That is a direct quote from the President. I am paraphrasing, but he did say the word ``stupid.''
Probably ``stupid'' would be the word, or maybe ``egregious'' or ``fed up'' that almost any group or any organization back home would use when you visit with them. I know Senators, on their past break or our work period, if you will, probably spoke to a lot of groups. I will tell you what happened to me.
I would walk into a group--any organization, be it farmers, ranchers, educators, health care, whatever--and they would say: Pat, what on Earth are you doing back there, passing all these regulations, a wave of regulations that do not make common sense and do not fit the yardstick, if you will, of cost and benefit? We can't even wake up any morning without some new regulation popping up across the desk, and we just don't have the people to do this. You are about to put us out of business.
The first thing I say is, I am not a ``you guy,'' I am an ``us guy.'' And I am very much aware of these regulations. We have to do something about it. I brought up the fact the President himself recognized these problems.
But I have to say that while I applauded this decision by the President, I noted there were some loopholes in his Executive order, and they are roughly these--if I could sort of summarize them: No. 1, if you are doing something for the public good--and, obviously, the secretary of any agency is going to say: Sure, we are doing something for the public good--well, then, you are exempt. That is a pretty big loophole to drive the truck through.
Secondly, it was if you are an independent agency. Well, let's try the IRS. I think more people than most would say: Yes, we have some regulatory problems with the IRS.
Several more, and I won't go into those. Then you have this paragraph, which I am going to read, that agencies can apply to their decision as to whether they are going to review the regulations they have on the books and regulations coming down the pike. They can apply this to see if they are exempt, and this is within the Executive order.
In applying these principles, each agency is directed to
use the best available techniques to quantify anticipated
present and future benefits and costs as accurately as
possible.
I can't imagine anybody being opposed to that.
Where appropriate and permitted by law, each agency may
consider and discuss qualitatively values that are difficult
or impossible to quantify--
I don't know how you do that--
including equity, human dignity, fairness and distributive
impacts.
That is about as amorphous as any language that I could possibly put together. If any secretary, or anybody in any agency who promulgates all the regulations they think they are forced to under some congressional act or perhaps an Executive order they are trying to issue applies this language, of course, they are exempt.
So there are loopholes, again, that you can drive trucks through in regards to the fact that this Executive order is basically not going to be adhered to because everybody will stand up and say: We are exempt. We are doing public good. We are doing this language--whatever that means.
So while I applaud the decision by the President, I decided last week I would introduce legislation to strengthen and codify his Executive order. All that means is, when I say we codify it, we say: OK, the Executive order stands but, sorry, no exemptions.
What a day that would bring to Washington, with all the Federal agencies saying: Whoa, stop. We are going to take a look at all the regulations we have out there now, and we are going to take a look at all the ones we are promulgating--which are hundreds of them. And, I might just note, there were 44 major regulatory decisions that cost the American business community $27 billion just last year, according to one study. We are finding more and more people coming to Washington who have an agenda in regards to these regulations, but the folks out there who are being impacted seem to be overlooked.
I have 30, 32, 35 cosponsors on this bill. I asked on both sides of the aisle for cosponsors. I think it is a good bill. It would be a brandnew day in Washington if every Federal agency had to stop and say: Whoa, wait a minute. Let's apply a cost-benefit yardstick. The Executive order sort of goes into what that would mean. They have one individual who is supposed to be doing all of this, so they could report to him, although that would be quite a load. My goodness, if all the Federal agencies stopped their regulatory process, there would be a cheer out in the hinterland in regards to every business I can think of.
Well, as the administration moves forward with this review, I am going to have something to say in several areas: health care, energy, and financing, to people who are lending agencies and the effect of the regulatory reform. But today I want to talk about agriculture.
Today I want to talk about the EPA and what is going on in regards to what I think is regulatory overkill for sure.
I am privileged to be the ranking Republican and to serve with the Senator from Michigan, our chairwoman of the committee, Senator Stabenow. Basically, as the administration moves forward with its review, I recommend the President and his advisers pay particularly close attention to the activities of three specific agencies when they are determining which proposed regulations will place the greatest burden on agriculture--a key component of our Nation's economy and the ability to feed this country and a troubled and hungry world--the Environmental Protection Agency, the Department of Agriculture, and the Commodity Futures Trading Commission.
Since fiscal year 2010, 10 new regulations promulgated--that is a fancy word in Washington which means issued--by the EPA have accounted for over $23 billion in new cost to the American taxpayer. Now, that is outrageous, and they are just getting started. The EPA has several new proposals, many of which will have immediate negative impacts on the ability of America's farmers and ranchers to continue to produce enough food to feed our communities, our States, our country, and, yes, the world. Think of how valuable that is as we look down the road with about a 9.3 billion increase in population compared to 6 billion today. We are going to have to double agriculture production, and I will talk about that a little later.
Why on Earth would we want to do anything to the farmer and rancher whose job it is to do that? That is beyond me. I will highlight two such proposals that many producers have brought to my attention. I just addressed the Commodity Classic in Kansas, in Great Bend, of about 200 farmers. Guess what their No. 1 concern was. Overregulation, regulation that could put them out of business. They are concerned about the farm bill and they are concerned about lending and they are concerned about debt. But first, in only 7 short weeks, the EPA will require farmers-- who are applying pesticide to kill pests so they can save the crop--to obtain a permit under the Clean Water Act, even though that activity is already highly regulated under the Federal pesticide law. The President said we don't need regulations that are duplicative. We don't need two agencies having a different agreement on one regulation. We probably don't even need that regulation because we have very strong regulations under the FIFRA act that we have right now.
Farmers and other pesticide applicators, under this regulatory impact, would not be facing these requirements if the administration had chosen to vigorously defend its longstanding policy that protections under the Federal pesticide law were sufficient to protect the environment.
Excuse me, Mr. President. That was probably a phone call from some farmer listening to this and saying: Go ahead and give them you know what, Pat.
Unfortunately, the administration chose a different path and now estimates suggest this duplicative regulation will require 365,000 individuals to get a Clean Water Act permit--365,000 individuals--a requirement that will cost $50 million and require 1 million hours per year to implement. Bottom line, it will not add any environmental protection.
This layer of redtape will place a huge financial burden on the shoulders of farm families all across the country, as well as State governments responsible for enforcement while at the same time facing dire budget situations. Last month, John Salazar, a former Member of the House of Representatives and newly appointed Colorado Commissioner of Agriculture stated in his testimony before the House:
It is no secret that States across the country face dire
budget situations and many have had to close State parks,
cancel transportation projects and cut funding to higher
education. It is very difficult to justify diverting even
more resources to manage paperwork for a permit that is
duplicative of other regulatory programs and has no
appreciable environmental benefits. However, if Colorado's
estimates are reflective of the situation in other States,
the true cost to States will quickly outstrip EPA's
estimates. More than 365,000 individuals, $50 million, and 1
million hours per year to implement on the backs of our
farmers and ranchers.
Mr. President, these expenses are not just limited to the cost of compliance and enforcement. The April 9 effective date is near. There is still significant confusion and uncertainty about what pesticide applications will fall under these new regulations. This means farmers and other pesticide applicators may very well find themselves subject to massive penalties. On top of the fact that they shouldn't be filling out the paperwork in the first place, if they do not, they could be held responsible for massive penalties for minor paperwork violations to the tune of--get this--$37,500 per day per violation. Unbelievable.
Beyond agency enforcement, they will also now be exposed to the threat of litigation under the clean water law's citizen suit provisions. With the volatile nature of agricultural markets and increased demand, these sort of risks and resulting costs are something that producers and the hungry mouths who depend on them simply cannot afford.
Next, EPA is undertaking an effort to control particulate matter-- this is a favorite of mine--otherwise known as dust. They call it rural fugitive dust. This is a dust-off of the old 1970s effort to control rural fugitive dust. I remember that. Somebody must have pulled it from the file. This is part of the EPA's review of the PM standard under the Clean Air Act.
The agency is currently considering the most stringent regulations on farm dust that have ever been proposed. I finally reached the person who, when they first proposed this, was in charge of promoting it, or she was going to promulgate these regulations on rural fugitive dust. Before I could get a word in--I finally reached the person in charge; it took me 3 days--finally, before I could get a word in, she said: Did you realize--at that point I was a Congressman, and she said: Do you realize, Mr. Roberts, you have a lot of dust in your part of the country?
I said: I think I know that. That is why we had the Great Plains Conservation Program. Each farmer has to have a conservation program if they are going to apply or for it to be applicable to the farm bill. We have a Conservation Reserve Program. We are doing everything we can to control dust, rest assured. Nobody likes that.
I said: What would you have us do to comply with rural fugitive dust rules?
She said: You know the grain trucks at harvest go up and down gravel roads, and they cause a lot of dust.
No kidding.
I said: What would you have us do?
She said: Why don't you send out water trucks at 10 o'clock in the morning and 2 in the afternoon to every community in Kansas that has those gravel roads where you harvest wheat.
I said: Great idea. That would be marvelous. Maybe we could get a grant. Today, that would be a stimulus grant to small communities in regard to rural areas where we are doing the wheat harvest to, No. 1, buy the trucks and, No. 2, find the water.
That is just how ridiculous this is with rural fugitive dust. To put it simply, this defies common sense, whether it is cattle kicking up dust in a feedlot in Dodge City, KS, or Larned, KS, or anywhere in Kansas during harvest on a hot afternoon on the high plains in June. Dust is a naturally occurring event. Standards beyond the current limit would be impossible to meet, particularly in the western portion of the Nation where rainfall is often scarce. I don't even know why I am taking this seriously in regard to that kind of regulation.
In a bipartisan June letter, 23 Members of this body wrote a letter to express these concerns to Administrator Jackson stating:
Considering the Administration's focus on rural America and
rural economic development, a proposal such as this could
have a negative effect on those very goals . . . Common sense
requires the EPA to acknowledge that the wind blows and so
does dust.
As we think about EPA's actions impacting agriculture, it is critical to recognize that no one cares more about maintaining a clean environment than the American farmer and rancher. Producers across the country manage their operations responsibly because of their desire to keep farming and to one day pass along that ranch or field to their sons, daughters and grandchildren if
they can. They know firsthand that clean air and water and healthy soil go hand-in-hand with a healthy economy. Our producers deserve respect and appreciation from the EPA, not costly and redundant and yes, even ridiculous regulation.
Shifting departments now, the Department of Agriculture's Grain Inspection, Packers and Stockyards Administration--GIPSA--released a proposed rule that would dramatically increase the redtape governing the business relationships surrounding production and marketing of livestock in the United States. The rule was initially proposed last summer without the benefit of a meaningful cost-benefit analysis-- something we have been trying to get and something the administration should have included.
However, the proposal has since received significant criticism from ranchers, industry and members of Congress alike and is now being further evaluated by USDA officials.
As written, the proposal would dramatically reduce consumer choice and increase costs. The proposal exposes packers to liability for use of alternative marketing arrangements and other innovative procurement methods, thereby ultimately depressing the prices received for America's most efficient and successful producers while potentially reducing the quality available to consumers.
Further, the proposed rule would actually increase concentration in the sector as businesses are forced to change their current organizational structure--exacerbating the very issue the rule is allegedly designed to address. For example, in Kansas, we have a highly successful rancher-owned company made up of individual producers who own both cattle and shares in the company's processing infrastructure. Under this proposal, many of the individual members of the company may now be prohibited from selling cattle directly to other processors, creating the need for a middleman that would then lower the price the producer actually receives.
If implemented, the GIPSA rule poses a substantial threat to the continued viability of the domestic livestock sector. In Kansas, this industry contributes over $9.5 billion to our economy. With an economic footprint of this magnitude, the GIPSA regulation is a burden that Kansas and many other rural States and many of the livestock producers simply cannot afford.
Another agency falling through the President's Executive order loophole is the Commodity Futures Trading Commission. As a result of the Dodd-Frank Act, the CFTC is charged with developing dozens of new regulations impacting participants up and down the swaps and futures chain.
Shouldn't these regulations be held to the same standard of cost- effectiveness and undue burden as others? Yes--but no. I talked to Chairman Gensler in my office just a couple of days ago. He is a very nice man, very pleasant. He believes very strongly that the CFTC is exempt from the President's Executive order because the President said it was exempt. I indicated that I didn't think so, especially since the CFTC is presently pushing 40-plus rules out the door in 1 year with little or no priority.
We were told the intent of Dodd-Frank was to reduce systemic risk in the financial marketplace. However, several of CFTC's proposals appear to increase risk management costs on those who do not pose a systemic threat. The CFTC must be mindful that increased costs through high margin and capital requirements on certain segments of the marketplace may decrease a user's ability to use appropriate risk management tools.
A rigorous cost-benefit analysis is tailor-made for the CFTC's current situation: dozens of economically significant rules; the potential to negatively impact risk management costs of American businesses; and a simple question needing to be answered--do the benefits of this proposed regulation--we are talking about anywhere from 40 to 60 now--in the form of lower systemic risk in our financial system outweigh the increased costs on businesses?
Let me say something. In talking with Chairman Gensler--again, I really appreciate him coming by the office and talking. It became obvious to me that with all these regulations, maybe the first one ought to be a definition regulation. What is a swap? Who is a dealer? It has not been done yet. So we are going to propose 39 more regulations and we have not even defined whom the regulations will affect and what the subject matter is that they are going to regulate. That is really unbelievable.
We are going to have a hearing tomorrow in the Senate Agriculture Committee. Chairman Gensler will attend and give his testimony. We are going to be very welcoming to him in regard to the committee, but that is something I am going to ask him. Why on Earth are you going ahead with 40 regulations and you can't even define whom you are going to regulate or what you are going to regulate? There is no definition. That, to me, is pretty bad. You have the cart before the horse there.
In closing, I wish to make two points. First, in many rural areas of Kansas and the rest of the country, agriculture is the cornerstone of the economy. Second, in the coming decades we will be even more reliant on America's farmers and ranchers to feed an ever-growing world population. I said that before.
We must truly commit to a real and robust--here is a good Senate word--robust review and revocation of any and all unduly burdensome regulations that could inhibit American agriculture's ability to produce the safest, most abundant, and affordable food, feed, and fiber supply in the world. What are we talking about? We are talking about 9.3 billion people. What are we talking about? The ability for our agriculture--for everybody in agriculture to double our production, all the farmers and ranchers. Why on Earth would we want this whole business of regulatory impact--most of which is highly questionable, none of which fits the President's Executive order to take a look at the cost-benefit--why on Earth would we do this to the very person whose job it is to feed this country and the hungry world?
Look at the Mideast--in turmoil. I remember one interview on TV where somebody stuck a microphone in and asked one of the protesters in Libya: What are you protesting for? Democracy?
He said: No, a loaf of bread.
Where people are hungry and malnourished, you have no economic opportunity. Where you have people who are hungry, they will go and join extremist groups, even on over into terrorism groups.
I had the privilege of being the chairman of the Intelligence Committee here in the Senate. That was one of the big considerations we had in whole areas of the world where people do not have the ability to feed themselves, where they are in a food-deficient area. It really poses problems for the future of that part of the world. Yet here we ask our farmers and ranchers to double our ag production in a couple of decades. I don't know how we are going to do this with this regulatory nightmare.
Let's hope we wake up soon. I hope everybody will take a look at my bill to codify the President's Executive order--I give him credit for doing that--but not with all these loopholes that are going to drive us nuts out there in rural, smalltown America.
I yield the floor.
I suggest the absence of a quorum.