<DOC>
[108th Congress House Hearings]
[From the U.S. Government Printing Office via GPO Access]
[DOCID: f:89352.wais]




 ELEVATION OF THE ENVIRONMENTAL PROTECTION AGENCY TO DEPARTMENT LEVEL 
                     STATUS: H.R. 37 AND H.R. 2138

=======================================================================

                                HEARINGS

                               before the

                 SUBCOMMITTEE ON ENERGY POLICY, NATURAL
                    RESOURCES AND REGULATORY AFFAIRS

                                 of the

                     COMMITTEE ON GOVERNMENT REFORM
                        HOUSE OF REPRESENTATIVES

                      ONE HUNDRED EIGHTH CONGRESS

                             FIRST SESSION

                                   ON

                                H.R. 37

TO ELEVATE THE ENVIRONMENTAL PROTECTION AGENCY TO CABINET-LEVEL STATUS 
    AND REDESIGNATE SUCH AGENCY AS THE DEPARTMENT OF ENVIRONMENTAL 
                               PROTECTION

                                 AND ON

                               H.R. 2138

TO ELEVATE THE ENVIRONMENTAL PROTECTION AGENCY TO CABINET-LEVEL STATUS 
    AND REDESIGNATE SUCH AGENCY AS THE DEPARTMENT OF ENVIRONMENTAL 
                               PROTECTION

                               __________

                      JUNE 6 AND SEPTEMBER 9, 2003

                               __________

                           Serial No. 108-50

                               __________

       Printed for the use of the Committee on Government Reform


  Available via the World Wide Web: http://www.gpo.gov/congress/house
                      http://www.house.gov/reform


                                 ______

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                            WASHINGTON : 2003
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                     COMMITTEE ON GOVERNMENT REFORM

                     TOM DAVIS, Virginia, Chairman
DAN BURTON, Indiana                  HENRY A. WAXMAN, California
CHRISTOPHER SHAYS, Connecticut       TOM LANTOS, California
ILEANA ROS-LEHTINEN, Florida         MAJOR R. OWENS, New York
JOHN M. McHUGH, New York             EDOLPHUS TOWNS, New York
JOHN L. MICA, Florida                PAUL E. KANJORSKI, Pennsylvania
MARK E. SOUDER, Indiana              CAROLYN B. MALONEY, New York
STEVEN C. LaTOURETTE, Ohio           ELIJAH E. CUMMINGS, Maryland
DOUG OSE, California                 DENNIS J. KUCINICH, Ohio
RON LEWIS, Kentucky                  DANNY K. DAVIS, Illinois
JO ANN DAVIS, Virginia               JOHN F. TIERNEY, Massachusetts
TODD RUSSELL PLATTS, Pennsylvania    WM. LACY CLAY, Missouri
CHRIS CANNON, Utah                   DIANE E. WATSON, California
ADAM H. PUTNAM, Florida              STEPHEN F. LYNCH, Massachusetts
EDWARD L. SCHROCK, Virginia          CHRIS VAN HOLLEN, Maryland
JOHN J. DUNCAN, Jr., Tennessee       LINDA T. SANCHEZ, California
JOHN SULLIVAN, Oklahoma              C.A. ``DUTCH'' RUPPERSBERGER, 
NATHAN DEAL, Georgia                     Maryland
CANDICE S. MILLER, Michigan          ELEANOR HOLMES NORTON, District of 
TIM MURPHY, Pennsylvania                 Columbia
MICHAEL R. TURNER, Ohio              JIM COOPER, Tennessee
JOHN R. CARTER, Texas                            ------
WILLIAM J. JANKLOW, South Dakota     BERNARD SANDERS, Vermont 
MARSHA BLACKBURN, Tennessee              (Independent)

                       Peter Sirh, Staff Director
                 Melissa Wojciak, Deputy Staff Director
                      Rob Borden, Parliamentarian
                       Teresa Austin, Chief Clerk
              Philip M. Schiliro, Minority Staff Director

Subcommittee on Energy Policy, Natural Resources and Regulatory Affairs

                     DOUG OSE, California, Chairman
WILLIAM J. JANKLOW, South Dakota     JOHN F. TIERNEY, Massachusetts
CHRISTOPHER SHAYS, Connecticut       TOM LANTOS, California
JOHN M. McHUGH, New York             PAUL E. KANJORSKI, Pennsylvania
CHRIS CANNON, Utah                   DENNIS J. KUCINICH, Ohio
JOHN SULLIVAN, Oklahoma              CHRIS VAN HOLLEN, Maryland
NATHAN DEAL, Georgia                 JIM COOPER, Tennessee
CANDICE S. MILLER, Michigan

                               Ex Officio

TOM DAVIS, Virginia                  HENRY A. WAXMAN, California
                       Dan Skopec, Staff Director
                 Barbara Kahlow, Deputy Staff Director
              Danielle Hallcom, Professional Staff Member
                   Alexandra Teitz, Minority Counsel


                            C O N T E N T S

                              ----------                              
                                                                   Page
Hearing held on:
    June 6, 2003.................................................     1
    September 9, 2003............................................   169
Text of H.R. 37..................................................    21
Text of H.R. 2138................................................    27
Statement of:
    Chisum, State Representative Warren, Texas House of 
      Representatives; Howard Roitman, director of environmental 
      programs, Colorado Department of Public Health and 
      Environment; Dr. Ron Hammerschmidt, director, Division of 
      Environment, Kansas Department of Health and Environment; 
      E. Donald Elliott, former EPA General Counsel and current 
      partner, Willkie, Farr & Gallagher LLP; Dr. A. Alan 
      Moghissi, president, Institute for Regulatory Science; and 
      Gary S. Guzy, former EPA General Counsel and current 
      partner, Foley Hoag LLP....................................   218
    Connaughton, James L., chairman, Council on Environmental 
      Quality; and Marianne L. Horinko, Acting Administrator, 
      Environmental Protection Agency............................   187
    Portney, Paul R., president, Resources for the Future; George 
      M. Gray, acting director, Center for Risk Analysis, Harvard 
      University; Steven F. Hayward, F.K. Weyerhaeuser fellow, 
      American Enterprise Institute for Public Policy Research; 
      Wesley P. Warren, senior fellow for environmental 
      economics, Natural Resources Defense Council; and Rena I. 
      Steinzor, esq., professor, University of Maryland, and 
      board member, Center for Progressive Regulation............    64
Letters, statements, etc., submitted for the record by:
    Boehlert, Hon. Sherwood, a Representative in Congress from 
      the State of New York, prepared statement of...............    62
    Chisum, State Representative Warren, Texas House of 
      Representatives, prepared statement of.....................   220
    Connaughton, James L., chairman, Council on Environmental 
      Quality, prepared statement of.............................   190
    Elliott, E. Donald, former EPA General Counsel and current 
      partner, Willkie, Farr & Gallagher LLP, prepared statement 
      of.........................................................   246
    Guzy, Gary S., former EPA General Counsel and current 
      partner, Foley Hoag LLP, prepared statement of.............   239
    Gray, George M., acting director, Center for Risk Analysis, 
      Harvard University:
        Information concerning agency estimates of benefits and 
          costs of major rules...................................   115
        Prepared statement of....................................    74
    Hammerschmidt, Dr. Ron, director, Division of Environment, 
      Kansas Department of Health and Environment, prepared 
      statement of...............................................   231
    Hayward, Steven F., F.K. Weyerhaeuser fellow, American 
      Enterprise Institute for Public Policy Research, prepared 
      statement of...............................................    78
    Horinko, Marianne L., Acting Administrator, Environmental 
      Protection Agency, prepared statement of...................   195
    Moghissi, Dr. A. Alan, president, Institute for Regulatory 
      Science, prepared statement of.............................   255
    Ose, Hon. Doug, a Representative in Congress from the State 
      of California:
        Prepared statement of................................... 4, 172
        Prepared statement of Ms. Mazurek........................     6
    Portney, Paul R., president, Resources for the Future, 
      prepared statement of......................................    67
    Roitman, Howard, director of environmental programs, Colorado 
      Department of Public Health and Environment, prepared 
      statement of...............................................   225
    Steinzor, Rena I., esq., professor, University of Maryland, 
      and board member, Center for Progressive Regulation, 
      prepared statement of......................................    98
    Tierney, Hon. John F., a Representative in Congress from the 
      State of Massachusetts, prepared statement of..............   184
    Warren, Wesley P., senior fellow for environmental economics, 
      Natural Resources Defense Council, prepared statement of...    83

 
 ELEVATION OF THE ENVIRONMENTAL PROTECTION AGENCY TO DEPARTMENT LEVEL 
                     STATUS: H.R. 37 AND H.R. 2138

                              ----------                              


                          FRIDAY, JUNE 6, 2003

                  House of Representatives,
  Subcommittee on Energy Policy, Natural Resources 
                            and Regulatory Affairs,
                            Committee on Government Reform,
                                                    Washington, DC.
    The subcommittee met, pursuant to notice, at 10 a.m., in 
room 2154, Rayburn House Office Building, Hon. Doug Ose 
(chairman of the subcommittee) presiding.
    Present: Representatives Ose and Davis (ex officio).
    Staff present: Dan Skopec, staff director; Barbara Kahlow, 
deputy staff director; Danielle Hallcom, professional staff 
member; Melanie Tory, jr. professional staff member; Yier Shi, 
press secretary; Alexandra Teitz, minority counsel; and Cecelia 
Morton, minority office manager.
    Mr. Ose. Good morning. Welcome to this morning's Energy 
Policy, Natural Resources and Regulatory Affairs Subcommittee 
hearing.
    Today we welcome the full committee chairman. Good morning.
    As this Nation faces a new generation of environmental 
challenges, the issue of the elevation of the Environmental 
Protection Agency [EPA], is more important than ever. The 
United States is one of the few industrial nations that does 
not place environmental protection in a Cabinet-level position. 
I believe that environmental protection is as important as 
other Cabinet functions and is critical to the health and well-
being of this Nation's environment and its people.
    Since its creation in 1970, EPA has grown from a small 
agency to one with about 18,000 employees and a budget of $7.7 
billion. Over the last 30 years, 11 major environmental laws 
expanded EPA's jurisdiction and delegated most implementation 
activities to the States. EPA now faces new environmental 
challenges originating from nonpoint sources that are difficult 
to regulate. To meet these future challenges, many experts have 
stated that EPA needs to be reformed.
    During the last Congress, this subcommittee held three 
hearings addressing EPA elevation bills introduced by 
Congressman Sherwood Boehlert and former Congressman Steve 
Horn. Several experts, industry representatives, EPA and other 
administration and State officials testified to the merits of 
the elevation and current organizational problems at EPA that 
hinder effective environmental protection. Today's hearing will 
examine two new EPA elevation bills referred to this 
subcommittee. H.R. 37, introduced by Congressman Sherwood 
Boehlert, is identical to H.R. 2438, as introduced in the 107th 
Congress. H.R. 37 would restrict itself to elevating EPA to 
department-level status.
    Based on the expert testimony from our previous three 
hearings, I introduced H.R. 2138 on May 15, 2003. My bill would 
make significant organizational and institutional changes to 
EPA. It reorganizes EPA into three Under Secretaries, the first 
being for Policy, Planning, and Innovation; the second for 
Science and Information; and the third for Compliance, 
Implementation, and Enforcement. The Under Secretary for 
Policy, Planning, and Innovation would have authority over all 
program offices, regulations, and policy development. The Under 
Secretary for Implementation, Compliance, and Enforcement would 
supervise the regional offices.
    Responding to the overwhelming criticism over the lack of 
sound science at EPA, my bill creates an Under Secretary for 
Science and Information. This section mirrors legislative 
language from H.R. 64, known as the Strengthening Science at 
the EPA Act, introduced by Congressman Vernon Ehlers, which 
passed the House in the last Congress. Finally, my bill creates 
an independent Bureau of Environmental Statistics to collect, 
analyze, and report on environmental and human health 
conditions. We have a chart on the right for everyone to take a 
look at.
    Currently, each EPA regional office, program office, and 
division reports directly to EPA's Administrator and Deputy 
Administrator as reflected on the chart on the left. The 
subcommittee heard testimony during the last Congress that this 
stovepipe organization results in EPA's inability to 
effectively address cross-media environmental protection. I 
believe that EPA's structure, as it currently exists, lacks 
adequate oversight and coordination of its offices to ensure 
that science, policy and implementation are integrated 
throughout EPA.
    The subcommittee also heard testimony during the last 
Congress that EPA lacks scientific leadership, critical science 
for decisionmaking, intra-agency dissemination of information, 
and coordinated efforts between the Office of Research and 
Development and the program offices. The lack of coordination 
between the Water and Air program offices that resulted in the 
MTBE contamination of our groundwater, particularly in 
California, must never happen again. I believe all science at 
EPA needs to be consolidated into a centralized division headed 
by strong leadership that will advance environmental protection 
by conducting peer-reviewed scientific studies of the highest 
caliber.
    One of the most serious deficiencies at EPA is the 
unavailability of reliable and measurable environmental outcome 
data, such as cleaner water and fewer illnesses. Several other 
departments have their own statistical agencies to provide 
independent and reliable data for decisionmaking and analysis. 
By creating a Bureau of Environmental Statistics, we can ensure 
that the policies EPA advances are actually cleaning the 
environment and protecting the health of our citizens.
    EPA, as it exists today, does not have the institutional 
ability to meet the environmental challenges of the 21st 
century. By reorganizing the EPA and providing the statistical 
tools to understand our changing environment, we have the 
opportunity to create an executive department that does a 
better job of protecting the environment than it currently does 
as an independent Federal agency.
    I look forward to the testimony of our distinguished panel 
here today.
    I am sorry to report that we have heard from one of our 
witnesses, Janice Mazurek, Director for Innovation and the 
Environment at the Progressive Policy Institute, that she will 
be unable to participate today due to an unexpected situation. 
I ask unanimous consent that her full written statement be 
included in the record. Hearing no objection, so ordered.
    Our panel of witnesses with us today includes Dr. Paul 
Portney, president of Resources for the Future; Dr. George 
Gray, acting director, Center for Risk Analysis at Harvard 
School of Public Health; Dr. Steven Hayward, F.K. Weyerhaeuser 
fellow at the American Enterprise Institute; Wesley Warren, 
senior fellow for environmental economics at the Natural 
Resources Defense Council; and Rena Steinzor, professor, 
University of Maryland School of Law, and board member for the 
Center for Progressive Regulation.
    Thank you all for coming.
    [The prepared statement of Hon. Doug Ose and the texts of 
H.R. 37 and H.R. 2138 follow:]

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    Mr. Ose. I would like to recognize our distinguished 
chairman for the purposes of an opening statement.
    Mr. Tom Davis of Virginia. Well, thank you very much, 
Chairman Ose, for holding the hearing today on the EPA and 
whether it would function better if elevated to a department 
level. I think this hearing is going to provide an opportunity 
to explore in an open-minded and bipartisan way whether the 
time has come to make drastic changes in the organization and 
mission of the EPA.
    Mr. Chairman, over the years you have done important work 
chairing this subcommittee, and your work in the 107th Congress 
on this issue created a strong legislative history and record 
of effective congressional oversight on these matters.
    In the 30 years since it was created, EPA has supervised 
and implemented the cleanup of urban industrial waste sites, 
fought for the protection of our forests, streams, and rivers, 
and educated the Nation about the importance of cleaner air in 
our suburban communities. In that period of time, the Agency 
has grown from around 4,000 employees to 18,000 employees. The 
EPA has offices located literally all over the Nation. It is 
charged with enforcing many diverse and sometimes even 
contradictory interests as it seeks to improve and sustain the 
Nation's environment. It is possible the elevation would better 
equip the Agency to meet and face these challenges. If that 
were the case, then we ought to be open to all feasible 
options.
    I look forward to the testimony from our experts today. I 
appreciate your subcommittee taking the time to consider this 
important legislation. I would just say, as chairman of the 
full committee, we take this effort seriously. Thank you.
    Mr. Ose. Thank you, Mr. Chairman.
    I would like to ask unanimous consent that the statement of 
Sherwood Boehlert be entered into the record. Hearing no 
objection, that will take place.
    [The prepared statement of Hon. Sherwood Boehlert follows:]

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    Mr. Ose. In this committee, we always swear our witnesses 
in. So, if you would all rise, please.
    [Witnesses sworn.]
    Mr. Ose. Let the record show that the witnesses answered in 
the affirmative.
    We have received your statements. They are going to be 
entered into the record in total. We have read them. I actually 
read them. I am sure Chairman Davis did, too. To the extent 
that we can, we would like to move through the statements 
expeditiously. We are going to give each of you 5 minutes to 
summarize. You don't have to use all of the 5 minutes, but hit 
your high points, if you would.
    I will go left to right here. We will start with Dr. 
Portney. Dr. Portney is the president for Resources for the 
Future.
    We welcome you to our committee. You are recognized for 5 
minutes.

  STATEMENTS OF PAUL R. PORTNEY, PRESIDENT, RESOURCES FOR THE 
   FUTURE; GEORGE M. GRAY, ACTING DIRECTOR, CENTER FOR RISK 
     ANALYSIS, HARVARD UNIVERSITY; STEVEN F. HAYWARD, F.K. 
 WEYERHAEUSER FELLOW, AMERICAN ENTERPRISE INSTITUTE FOR PUBLIC 
     POLICY RESEARCH; WESLEY P. WARREN, SENIOR FELLOW FOR 
ENVIRONMENTAL ECONOMICS, NATURAL RESOURCES DEFENSE COUNCIL; AND 
RENA I. STEINZOR, ESQ., PROFESSOR, UNIVERSITY OF MARYLAND, AND 
        BOARD MEMBER, CENTER FOR PROGRESSIVE REGULATION

    Dr. Portney. Thank you very much, Mr. Chairman and 
Congressman Davis. I am pleased to be here, and I appreciate 
the opportunity to testify.
    The one thing I will say by way of introduction is that, 
while I am president of Resources for the Future, a think tank 
here in Washington that specializes in energy and environmental 
issues, I want to make clear that the comments today that 
you'll hear from me are my own and do not represent the views 
of RFF.
    I will cut directly to the chase, taking you at your 
admonition, and say that I am strongly supportive of the 
elevation of EPA to Cabinet status and even more enthusiastic 
about the creation of a Bureau of Environmental Statistics 
within the Environmental Protection Agency. I have long 
believed that elevation of EPA to Cabinet status has been a 
good idea. It was a good idea when former President George Bush 
put it forward, it was a good idea when former President Bill 
Clinton put it forward, and it remains a good idea today.
    Several brief observations about the consequence of making 
EPA a Cabinet department, if I can. My view is that having EPA 
become a Cabinet department is largely symbolic, but as I said 
in my prepared remarks, sometimes symbols matter. I believe 
that having an EPA administrator who would be a Secretary of 
Environmental Protection would facilitate international 
negotiations on environmental issues, and it would be a strong 
signal to the rest of the world that we take environmental 
protection as seriously as we take the provinces of the other 
Cabinet departments.
    With respect to the reorganization that is proposed in H.R. 
2138, I can see a number of advantages to those proposed 
changes, though I am more agnostic on those changes than I am 
on the issue of elevation to Cabinet status itself. As somebody 
who has studied environmental regulation for 31 years--it pains 
me to cite that figure, I have to confess--I am now of the 
belief that if the Administrator of EPA, whoever he or she may 
be, wants to make use of good science and good economic 
analysis in regulation, then that analysis will be forthcoming. 
If the Administrator of EPA is not a strong client for strong 
science and economic analysis in regulation, then there won't 
be a market for it and that kind of information will not be 
forthcoming.
    In the legislation, you talk about the organizational 
structure of EPA as being an obstacle to cross-media tradeoffs, 
to experimentation along the lines of things like Project XL, 
etc. I agree with you that the organization of EPA can be an 
impediment to these kinds of things, although I have to be 
honest and say that I think it is the statutory framework under 
which we regulate in the environment--with a clean air statute 
that makes no connection to solid waste or water pollution, and 
a water pollution statute that does the same--that is the 
bigger obstacle to cross-media regulation or experimentation.
    Turning quickly to the Bureau of Environmental Statistics, 
I think it is badly needed, and I have felt that way for a long 
time. In a Nation where we spend, according to EPA's estimates, 
on the vicinity of $150 billion each year on environmental 
regulation, I think the Members of Congress, other parts of the 
administration and, most of all, the American public deserve an 
annual reporting on the progress that we are making in cleaning 
up the environment.
    Currently, we have fragmented, periodic efforts to report 
to the public. One of my fellow co-panelists here today, Steve 
Hayward, has participated in such an effort for 8 or 9 years, 
for which he is to be congratulated.
    The Heinz Center recently issued a State of the Nation's 
Ecosystems Report which I think is an excellent summary of some 
of the environmental progress that we are making.
    The Council on Environmental Quality in its annual report, 
in the past at least, has contained voluminous information on 
ambient environmental protection. I am aware of that because 
for 2 painful years that I spent at CEQ I was responsible for 
pulling all of that information together.
    Nevertheless, there is no comprehensive annual estimate 
that comes from the Federal Government, as I think this 
information should come, on environmental conditions and 
trends.
    I think that the independence of the Director of the Bureau 
of Environmental Statistics is absolutely essential. I think 
that person should have the same kind of protection that the 
head of the Bureau of Labor Statistics has within the Labor 
Department and the head of the Bureau of Economic Analysis has 
within the Commerce Department.
    And, finally, let me say that, in thinking about the kinds 
of information that the Bureau of Environmental Statistics 
would provide, I would urge that we envision that this be done 
somewhat cautiously, beginning with the presentation of 
information on trends in environmental quality, air quality, 
water quality, land contamination, etc.; broadening them to 
contain information and data on emissions, levels of waste 
generated, etc.; possibly then expanding to include information 
on compliance and enforcement. I mention this having read the 
article that I am sure you have seen in today's Washington Post 
about compliance and noncompliance with the Clean Water Act.
    And then, finally, in a perfect world, the Bureau of 
Environmental Statistics could present evidence on health and 
economic indicators that are related to the environment. I 
mention those last not because those are not important--indeed, 
we need to know about asthma and other things--but, rather, 
because the link between environmental quality and a variety of 
health end points is the subject of considerable debate. I 
would rather see the BES present environmental quality data 
first and then gradually build itself up to presenting this 
other data.
    Thank you so much for having me here today, and I will be 
happy to answer any questions that you have.
    Mr. Ose. Thank you.
    [The prepared statement of Mr. Portney follows:]

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    Mr. Ose. Our next witness is Dr. George Gray. He is with 
the Harvard Center for Risk Analysis at the Harvard School of 
Public Health.
    Dr. Gray, you are recognized for 5 minutes. Thank you for 
coming.
    Dr. Gray. Thank you, Chairman Ose, Mr. Davis. It is a 
pleasure to be here.
    A similar sort of introduction to Dr. Portney: These 
remarks are mine alone and shouldn't be attributed to the 
Harvard Center for Risk Analysis or the Harvard School of 
Public Health. They are also informed by my almost 15 years 
working as a scientist, a risk analyst, and a public health 
professional.
    I am here to support the idea of elevating the 
Environmental Protection Agency to departmental status. I think 
that EPA's mission is important to the citizens of our country, 
and raising it to the highest level will recognize the priority 
that we give to human health and our natural resources. But, 
like many others, I do believe that this transition is an 
opportunity to evaluate the ways in which this new department 
acts to achieve these goals, and for this reason I support many 
of the provisions of H.R. 2138. And, I want to touch very 
quickly on two of those.
    Touching on this notion of restructuring EPA, I think the 
development of a Bureau of Environmental Statistics has a 
variety of very positive attributes. First, I think it is very 
important that we have concrete evidence of the effective 
efforts to address environmental problems.
    Another thing that I think is important that we may often 
overlook is that it is a communication device for the new 
department, and I want to touch on that especially. I think it 
will help to identify and prioritize emerging challenges.
    And the last thing that I want to spend a little bit of 
time on is the fact that we do have to be, I think, a little 
bit humble about what we can actually learn from a Bureau of 
Environmental Statistics.
    Turning to the communication aspects. There is a problem in 
this country in that an awful lot of people don't understand, 
don't appreciate the progress that we have made in the 
environment over the last 30 years. In a 2002 survey that was 
conducted by Wirthlin Worldwide for the Foundation for Clean 
Air Progress, they asked 1,000 American adults: Do you believe 
that the Nation's air has gotten better or worse in the last 10 
years? And, over two thirds of them said the air has gotten 
worse. That is wrong, and that is a problem. Because how can we 
expect the public to support environmental measures, some of 
which are going to be inconvenient or possibly expensive for 
them--things that address tailpipe emissions could increase the 
price of cars, it could increase the price of fuel--if they 
don't think they are getting anything for these efforts?
    I think that a well-respected and trusted national Bureau 
of Environmental Statistics can help build support for the 
Department of Environmental Protection and its efforts and can 
also provide this important information and context for 
citizens.
    However, I do think we have to be humble about what we 
could learn with this Bureau. Many of EPA's rules and 
regulations focus on reductions in risk to human health, yet it 
is extremely unlikely that any effort to gather statistical 
information on public health will identify changes that you can 
associate with a specific regulation. The risks that the EPA 
addresses in general are just too small. I don't think you 
could find an epidemiologist or a public health statistician 
who believes that we could detect any change in health status 
in a town, for example, that reduces arsenic in its drinking 
water to meet the new EPA standard. It is important to be aware 
of the information that this new Bureau can and cannot provide 
to help guide decisionmaking.
    The EPA uses the tools of risk assessment and management to 
inform their important decisions. The way that this approach is 
intended to work, science is done on one side, we bring the 
best information we can to bear on problems, and then policies 
are then formulated. These policies include information that 
goes well beyond science. They include economics, they include 
engineering, they include social sciences, and a lot of other 
things that are important.
    There is a perception today, I will tell you, in the 
scientific community that right now policy in EPA influences 
their science, and that influence undermines the credibility of 
both EPA's science and EPA's decisions. So I think that the 
proposal in H.R. 2138 to restructure the Department by function 
would go a long way to improving both the perception and the 
reality of the credibility of EPA's science and decisions.
    In closing, I think elevating EPA to departmental status is 
a positive thing to do; and while we are doing that, I do 
welcome attention to improving the information that is 
available for confronting current and future environmental 
challenges with sound science and with environmental 
statistics. I think careful consideration of opportunities for 
restructuring is also warranted to build confidence in the 
science and the decisions that guide our efforts in 
environmental protection.
    So I want to thank you and applaud you for your efforts 
looking forward to equip our country with the tools we need to 
ensure wise environmental protection in the future, and I would 
be happy to answer any questions.
    Mr. Ose. Thank you, Dr. Gray.
    [The prepared statement of Dr. Gray follows:]

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    Mr. Ose. Our next witness is Dr. Steven Hayward, who is the 
resident scholar at the American Enterprise Institute for 
Public Policy Research.
    I want to thank you for coming, Dr. Hayward. You are 
recognized for 5 minutes.
    Dr. Hayward. Thank you, Mr. Chairman.
    I guess I will depart from my written testimony a little 
bit and add to it, if I can, by noting a little bit of history.
    President Nixon originally intended the EPA to be a 
Cabinet-level department of environment and natural resources. 
He intended it as a sweeping reorganization of the entire 
executive branch, and it didn't happen for reasons unrelated to 
the merits of the idea of having the environment as a Cabinet-
level agency. So, instead, the EPA was created as an 
administrative organization at the same time we created a lot 
of things like the Consumer Product Safety Commission and OSHA; 
and I think it is increasingly clear today, for reasons that 
have already been alluded to, that the EPA is much more like 
the Department of Health and Human Services in terms of its 
public importance than it is like the Consumer Product Safety 
Commission.
    I mean, one reason I think it is a good idea to elevate the 
EPA to Cabinet rank is that it will help in a broad sense to 
educate the public better about environmental issues in much 
the same way that the reorganization of the Department of 
Homeland Security focuses the public mind better on the issues 
that Department is intended to address--because it could have 
been kept the way it was, with Tom Ridge in the White House 
trying to coordinate different agencies--and the way the 
Council of Environmental Quality now tries to coordinate 
between all the government agencies that work on the 
environment. So the point is it is long overdue to put the EPA 
on a higher plane.
    We are going to sound a bit like a broken record so far, 
because I think the heart of this bill to me is the proposed 
Bureau of Environmental Statistics. I spend most of my time 
trying to research environmental data and find out what's going 
on and what we know and more importantly perhaps what we do not 
know.
    The EPA does an excellent job of monitoring air quality, 
and the data they produce and the annual report they produce is 
superb. They do a less good job, as we learned from the Post 
story today, on water quality. And, the problem of identifying 
good data and water quality is immense. But that is the kind of 
problem that the Bureau of Environmental Statistics can begin 
to get its hands around, rather than right now having those 
data be generated by individual regulatory programs that don't 
fit together in any kind of intelligible whole.
    I first learned this idea from Paul. I have to give him 
full credit for it and return the kindness he gave to me.
    If you go back to the very first report of the President's 
Council on Environmental Quality in 1972, they said this: The 
use of a limited number of environmental indices by aggregating 
and summarizing available data could illustrate major trends 
and highlight the existence of significant environmental 
conditions. It could also provide the Congress and the American 
people measures of the success of Federal, State, local, and 
private environmental protection activities.
    An analogy might be drawn with the economic area, where the 
Consumer Price Index, the Wholesale Price Index, and 
unemployment rates provide a useful indication of economic 
trends.
    Well, here we are 31 years later, and we are still not 
doing all that; and I think the time has come. Thank you.
    Mr. Ose. Thank you, Dr. Hayward.
    [The prepared statement of Dr. Hayward follows:]

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    Mr. Ose. Our next witness is Wesley Warren. He is the 
senior fellow for environment economics at the Natural 
Resources Defense Council.
    We are very grateful for you appearing, and you are 
recognized for 5 minutes.
    Mr. Warren. Thank you. I would like to express my 
appreciation both to the chairman of the subcommittee and the 
full committee for giving this such attention today.
    The Natural Resources Defense Council does support 
legislation to elevate EPA to Cabinet status. We believe that 
this would put the Agency on par with other Departments and 
would also send an international signal about the importance of 
environmental issues generally.
    However, we do not support this objective to such an extent 
that we would accept changes in the Agency's authorities or 
structure that would actually hamper its ability to get its job 
done. Therefore, we urge the committee, if it takes up this 
issue, to pass a clean bill, free of any other types of 
provisions.
    Repeatedly, attempts to add other issues to this 
legislation have derailed these legislative proposals, and we 
think it would just end up, because of the controversy, being a 
one-way ticket to nowhere.
    Accordingly, we have endorsed H.R. 37, which is legislation 
that would be a simple and direct elevation. But we do oppose 
H.R. 2138 which we believe, for reasons that I will discuss in 
greater detail, do not meet this description.
    I believe when people look at the issue of elevating EPA to 
a Cabinet agency, there are two great temptations. One is to 
change the authorities of the Agency, and the other is to 
reorganize its structure. This is something that H.R. 2138 does 
in both cases. And, I believe in fact that it is very well 
intended, that it is looking at important issues, like how do 
we encourage cross-media work at the Agency, and how can we 
improve the quality and quantity of good environmental 
information, both of which are objectives that we also share 
support for.
    However, we would not like to see those objectives pursued 
in a way where we might actually create more bureaucracy and as 
a result more litigation and gridlock. And so, again, whatever 
the merit of those issues might be at a separate time and 
place, we strongly urge their exclusion from this legislation.
    If I can take a couple of moments to detail what our main 
concerns are--I won't go into all of them, which are in my 
testimony--I would say I believe the most troubling is the 
statutory mission statement that is included in the bill that 
would create a vague new standard hinging on the concept of 
unreasonable risk. We believe that unreasonable risk is only 
one standard that could be considered in terms of environmental 
protection, but it is by no means the one, that is used most 
generally in statutes; and that the mission of the Agency 
should be, plain and simple, to administer the statutes that 
Congress has already passed or may pass in the future.
    Second of all, in respect to the reorganization, I would 
like to point out a couple of issues that we also consider 
troubling. But I believe that the main point on reorganization 
is this: That, by and large, the Agency already has the 
authority it needs to accomplish the purposes of providing 
better information and doing cross-media work if it has the 
will and resources to do so.
    I, too, read the article in the Post today. Part of the 
headline is: Agency Says It Must Do a Better Job of Monitoring. 
Yet the Bush administration budget for this year actually would 
cut compliance monitoring and civil enforcement activities at 
the Environmental Protection Agency by nearly 100 positions, at 
the same time that the State of California in this article says 
what it needs more than anything else to provide more and 
better monitoring statistics is money.
    So we believe that merely bringing together information 
functions into a single place in the Agency and relabeling it 
doesn't necessarily mean that the Agency is going to be able to 
provide this job; and we would urge the committee to first look 
at ways in which they could make those current authorities and 
resources fit more closely the needs of the Agency.
    Finally, I would like to say that, if the committee decides 
what it would like to do is to try to improve the operation of 
the Agency by changing authorities or structure, then in fact 
we would have many suggestions of actions that could be taken 
that would improve environmental protection in this country. I 
have listed some of those suggestions in my testimony. I 
recommend them for consideration of the committee.
    But I would just conclude by saying that I believe that any 
of those proposals might also be controversial and that the end 
result might be derailing our common objective of elevating EPA 
to a Cabinet-level agency, which should be the purpose of the 
legislation.
    Mr. Ose. Thank you, Mr. Warren.
    [The prepared statement of Mr. Warren follows:]

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    Mr. Ose. Our final witness is Rena Steinzor, who is a 
professor at the University of Maryland School of Law and a 
Board Member at the Center for Progressive Regulation.
    Thank you for joining us this morning. You are recognized 
for 5 minutes.
    Ms. Steinzor. Thank you, Mr. Chairman, for the opportunity 
to appear before you today. My comments do represent the views 
of the Center for Progressive Regulation, also a think tank 
doing much of its work in Washington.
    As the chairman explained at the outset, you have two very 
distinct pieces of legislation before you today. CPR would like 
to make five points about these legislative proposals and their 
potential impact on environmental protection.
    Point one, elevation is far less therapy than this gravely 
patient really needs. There is a broad-based consensus among 
the Agency's major constituencies that it should be elevated to 
Cabinet status, and CPR agrees with that view. However, at this 
juncture, elevation has the flavor of fiddling while Rome 
burns. Opponents have laid siege to the Agency which just lost 
Governor Whitman. A range of deregulatory initiatives imposed 
by the White House have undercut its daily work more 
drastically than at any point in the last 15 years. A ceremony 
in the Rose Garden celebrating its Cabinet status would convey 
a profoundly misleading impression about its stability and 
effectiveness.
    Beginning with broken promises at Kyoto, this 
administration has pursued a series of initiatives designed to 
roll back protections established by Presidents on a bipartisan 
basis over three decades. Among the most troubling are those 
that undermine the work of the President's father who led 
Congress to pass the 1990 Clean Air Act amendments, among the 
most comprehensive environmental initiatives ever to be enacted 
in this country.
    Meanwhile, the political appointee in charge of the Office 
of Water has launched an expensive and time-consuming 
initiative to eliminate Federal controls on pollution for 50 to 
60 percent of streams and 20 percent of wetlands. Unless and 
until the States pick up the slack left by EPA and the Army 
Corps of Engineers' abrupt departure from the field, these vast 
and irreplaceable natural resources could be polluted, drained, 
or filled in by industrial dischargers, real estate developers, 
and sewage treatment plants.
    Point two, clean bill, or proverbial Christmas tree? Many 
of the EPA's critics, especially on the business side of the 
spectrum, have grown extremely frustrated by their inability to 
persuade Congress to undertake radical surgery on its core 
authorizing statutes. Efforts to impose similarly radical 
changes in the form of generic across-the-board regulatory 
reform have also failed. You will face a great deal of pressure 
to load the Cabinet bill up with yet another series of reform 
measures. This approach is likely to, and without a doubt 
should, doom passage. The only democratic and sufficiently 
transparent way to accomplish such reform is to undertake the 
difficult debates that are necessary to determine how much and 
how fast we will protect our air, our water, and our land, as 
well as the condition of the environmental legacy we will leave 
to our children.
    Point three, this bill represents an unreasonable risk of 
undermining democracy. Perhaps as a reflection of the pressure 
to reform EPA through Cabinet elevation legislation rather than 
the normal legislative process, H.R. 2138 would define EPA's 
mission as protecting the public from unreasonable 
environmental risks. This standard is borrowed from the Toxic 
Substances Control Act, the least effective and least 
protective of all the statutes that EPA administers.
    There are more details in my testimony about the impact of 
the Fifth Circuit's decision in Corrosion Proof Fittings versus 
EPA, which has basically crippled the Agency's effort to deal 
with asbestos which continues to plague the health of many 
Americans.
    Point four, reorganizing into more bureaucracy and less 
enforcement. The reorganization plan fragments EPA's core 
regulatory missions and creates a new layer of bureaucracy that 
will further congeal proactive efforts to enforce the law. The 
draining task of implementing this plan will cost EPA at least 
2 years of progress on other aspects of its mission as 
positions in policymaking jurisdiction are shuffled and turf 
wars are fought.
    Point five, environmental statistics and the States. 
Interestingly, I did not read today's front page Washington 
Post story as supporting the idea that we don't have enough 
data to decide what to do. In fact, what that story said was 
that one-quarter of major dischargers of pollution into the 
Nation's surface waters are routinely violating the Clean Water 
Act. We have data; we just are not doing anything about it.
    I appreciate the opportunity to testify.
    Mr. Ose. Thank you, Ms. Steinzor.
    [The prepared statement of Ms. Steinzor follows:]

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    Mr. Ose. All right. We are going to go to questions now. 
The way this works is that I have a number of questions that I 
need to get through here, and we will go left to right and 
right to left and left to right and right to left. If someone 
has something they want to offer, we have plenty of time. I am 
sure my colleagues up here will give me plenty of time to go to 
everybody. So we will just go forward. I do appreciate 
everybody's succinctness in summarizing their testimony.
    In the last Congress this subcommittee heard testimony 
regarding problems with EPA's operations, its science, its 
effectiveness of its regulations, its impact on the regulated 
community, its regional offices, its program offices, its lack 
of cross-media research, etc. The sum and substance of that was 
that many believe that, after 30 years of seeking piecemeal 
improvements, EPA needs to be reformed.
    Dr. Portney, we will start with you. Should Congress make 
reforms to EPA's organizational structure? And, is it 
appropriate to do it concurrent with the elevation to Cabinet-
level status?
    Dr. Portney. Mr. Chairman, I think that there are respects 
in which EPA's operation can certainly be improved.
    I guess I would answer your question this way: If the 
reorganization that this legislation proposes becomes the 
overwhelming impediment to elevating EPA to Cabinet status and 
to creating a Bureau of Environmental Statistics, then I would 
be inclined to say that I would be happy to move a cleaner bill 
that incorporates the Bureau of Environmental Statistics and 
not run the risk of compromising what you have proposed, 
elevation and the creation of a Bureau that I think is 
overwhelmingly in the best interest of the public.
    Mr. Ose. So your de minimus standard is, at least, the 
Bureau of Environmental Statistics?
    Dr. Portney. To me, that is the most important part of the 
legislation that you have introduced. Yes, sir.
    Mr. Ose. OK. Dr. Gray, the same question.
    Dr. Gray. I really see a change like this as an 
opportunity, and I think that this may be the time to take the 
opportunity to try to address many of the pathologies of 
decisionmaking in EPA that have been identified by this 
committee in the past. I don't think we should waste it.
    And, it would be important--I share Dr. Portney's view that 
the Bureau of Environmental Statistics is extremely important 
to us, and I think that elevation is extremely important, but I 
think we should be very careful not to waste an opportunity, 
because it would be very difficult to do this under other 
circumstances. Don't waste the opportunity to address many of 
the problems that you've identified.
    Mr. Ose. So you would prefer to make structual changes as 
opposed to de minimus changes providing for at least the Bureau 
of Environmental Statistics?
    Dr. Gray. I think that would be my preference, yes.
    Mr. Ose. OK. Dr. Hayward.
    Dr. Hayward. Well, I don't have much expertise in 
administrative organization. But as I look at your two 
organizational charts over there, the one in the poster, if 
that really reflects the way EPA works, sort of reminds me 
about that politically incorrect joke about a certain kind of 
firing squad; and it can't strike me that is a good way to 
continue. It strikes me that the one that's up on the screen, 
which is the proposed reorganization, almost surely looks more 
like other departments are organized in the Cabinet. So, I 
mean, there is always going to be a lot of bureaucracy in 
government with that big an agency doing this many things. So 
it just seems to me it has to be much more sensible on the face 
of it to reorganize it the way your bill proposes.
    Mr. Ose. Mr. Warren, another bite at the apple.
    Mr. Warren. Thank you. I appreciate that.
    This is a very serious issue for the Agency, and I believe 
that your bill is actually a very thoughtful proposal in this 
field. But I think it is an issue that no one has actually 
solved this Rubik's Cube on yet.
    People recognize stovepiping as a problem at the Agency, 
yet I think that merely creating three Under Secretaries 
doesn't solve that problem. You have fewer pipes, yet in some 
ways they are thicker. The Policy and Planning Under Secretary 
would oversee the other Assistant Secretaries, but Science and 
Enforcement and Compliance aren't really integrated into the 
policy and planning function. And so, in some ways it might 
reinforce the separation of those activities from being fully 
integrated.
    Instead, I believe that, on that issue, Congress has 
already passed legislation that could serve this purpose, which 
is the Government Performance and Results Act: that, among 
other things, requires the Agency to produce a strategic plan, 
which they are in the process of revising; and that properly 
charges the head of the Agency with serving the integrating 
function, which I think is where the responsibility should 
reside.
    Mr. Ose. Professor Steinzor.
    Ms. Steinzor. It is common wisdom among public management 
experts that any comprehensive reorganization means that 
agencies are deflected from their core work for a period of 
time. We are estimating 2 years. I think that is probably 
conservative. CPR questions whether this agency can afford that 
kind of deflection when you see the erosion in the past of its 
routine bread and butter activities in enforcing the Clean 
Water Act and also when you consider its crucial role in 
counterterrorism. EPA was the one that responded to anthrax, 
that estimated the health risk at the World Trade Center. EPA 
is the only agency with authority to ask the chemical plants to 
make themselves more secure and prevent accidents. That 
industrial sector is unregulated at this moment in terms of 
those issues, and we feel that those imperatives are 
sufficiently urgent that a clean bill is the way to go on this.
    Mr. Ose. Thank you.
    When President Nixon created EPA in 1970, he stated his 
reasons for doing so, but he did not provide a mission 
statement, and since that time EPA has developed its own 
mission statement. My question is, should a mission statement 
be included in a bill establishing a new department. Professor 
Steinzor, your input on that?
    Ms. Steinzor. I'm a little puzzled about the bill's intent, 
because I understand your wish to provide a mission statement, 
and yet the bill has a savings clause that says it is not 
intended to affect any of the existing statutes.
    If your mission statement says that the Agency's mission is 
unreasonable risk, which is a standard under the Toxic 
Substances Control Act, and yet you have a savings clause that 
says this legislation does not affect the Clean Water and Clean 
Air Act, we will end up in massive arguing, including in court, 
about which one is the right interpretation.
    There is a broad constituency that would fight very hard 
against the idea that unreasonable risk should be the statutory 
standard across the board. So I am not sure how the legislation 
would ultimately be interpreted, but I can promise you full 
employment for all the law students in my class if it passes, 
unfortunately.
    Mr. Ose. All right.
    Mr. Warren.
    Mr. Warren. Well, I think there are two different issues. 
One is, does the Agency need a statutory mission statement; and 
second is whether the mission statement included in H.R. 2138 
is the correct one. H.R. 37 does not have a statutory mission 
statement. We believe that is the way to go. We believe that is 
the way to go because, as I said in my oral comments, the 
mission of the Agency is to administer the statutes that 
Congress has passed and given EPA the responsibility to 
administer.
    One of the statutes, again, is the Government Performance 
Results Act, which requires a strategic plan; and in that 
strategic plan the Agency has already included a mission 
statement. The mission is to protect human health and the 
environment. Therefore, we believe that the Agency already has 
come up with the necessary means to address the issue of what 
the mission should be.
    In respect to the second question about whether you have 
correctly stated the mission, as I said in my oral comments, 
no, we don't believe that should be the stated mission.
    Mr. Ose. Thank you.
    Dr. Hayward.
    Dr. Hayward. I don't have too much to say about this, 
except that it strikes me as entirely appropriate for Congress 
to state some congressional intent about what the mission of a 
Cabinet-level agency is going to be. It may not matter as much 
in this case, although, again, if you go back to the very 
beginning, lots of things about the environment and the mission 
of the EPA was left undefined. And although Nixon had some 
general intent, ultimately, he punted and said, I am going to 
leave it to the first administrator to decide what the scope is 
and how they are going to go about their mission. And, there 
was actually some talk of a time, because there was this big 
Presidential commission on population issues, that maybe the 
EPA will be a lead agency for confronting population issues, 
which has always been on the global scale a large environmental 
theme.
    In the 30 years on, we sort of settled onto the EPA 
administering particular statutes for--you know, toxic 
substance has been mentioned, air quality, and so forth. And 
so, these kinds of larger issues of what should the mission, 
broadly speaking, of the Agency be have fallen away as a 
practical matter. But it seems to me entirely appropriate for 
you to weigh in on what you think its general direction should 
be.
    Mr. Ose. Dr. Gray.
    Dr. Gray. Well, as a scientist, I don't feel that I am 
particularly well-equipped to comment on the dance between the 
executive and the legislative branch. But what I can say very 
briefly is that I really like this mission statement as an 
aspiration for and a way to guide the thinking and the 
decisions of the Environmental Protection Agency.
    And, I guess that's where I'd leave it. I don't know if 
it's the right thing to do, but if you do it, I like this one.
    Mr. Ose. Dr. Portney.
    Dr. Portney. Three quick points in response. First of all, 
I know when you took testimony on comparable legislation in 
previous years you heard from one of my colleagues, Terry 
Davies, who is I think one of the wisest students of 
environmental protection in the country. He would just, 
frankly, kill me if I didn't use this opportunity to say that 
he has always been a champion of the notion that there ought to 
be an organic statute empowering the EPA. So I will say that, 
to the extent this mission statement question is a 
manifestation of congressional belief in having some kind of 
organic statute empowering EPA, I am supportive of that.
    Second, I always support the idea of Congress pointing out 
to the Environmental Protection Agency, that while there are 
any number of risks it is absolutely essential that the Agency 
regulate, there ought to be some notion of de minimus risk; and 
pointing out to the Agency that they can't control every single 
thing that appears in every single media isn't harmful, even 
though I don't see something like that trumping the individual 
statutes under which EPA regulates.
    And, finally, at the risk of sounding like a stuck record, 
I want to respond the way I did to your first question and say 
that if this question of having a mission statement or the 
language of unreasonable risk in the bill imperils elevating 
EPA to statutory or to Cabinet status or stands in the way of 
creating the Bureau of Environmental Statistics, I would throw 
it overboard.
    Mr. Ose. You have come to a conclusion as to what your 
objective is, haven't you?
    Dr. Portney. Man on a mission.
    Mr. Ose. Thank you. EPA, as you see the chart to my left, 
is currently structured in a manner that many refer to as a 
stovepipe approach. That is that many Assistant Administrators 
and various divisions of EPA each report independently to the 
Administrator without other oversight. During our hearings in 
the previous Congress, witnesses discussed how to improve the 
organization of EPA. We are going to start, Dr. Portney, with 
you. What are your views regarding H.R. 2138's reorganization 
of the Department into three Under Secretaries? Does this 
structure improve or not improve the Secretary's ability to 
manage the Department?
    Dr. Portney. I think that the structure that you propose 
would improve the Secretary's ability to manage the Department. 
There is no question in my mind about that.
    The types of problems that you have cited, though--the 
inability to make these cross-media tradeoffs, etc.--I think 
are probably due more to the fragmented statutory arrangement 
under which EPA regulates now than to the way the Agency is 
currently organized administratively. But I am supportive of 
the proposed reorganization and I hope in the future we will be 
able to take on the individual statutes to allow EPA to make 
these kinds of cross-media tradeoffs.
    Mr. Ose. One of my concerns is that we only pick a fight we 
might be able to win.
    Dr. Gray, any comment on that, on the questions I asked?
    Dr. Gray. Just one quick comment. Again, as I look at this 
primarily from a scientific point of view, we have to remember 
that science is a credibility that underlies all of EPA's 
decisions. My interest is in having those decisions be as 
credible as possible. I think this structure would help 
increase the credibility of EPA by making that clear 
distinction between policy and science. It would allow their 
science to get the recognition for its quality that it 
deserves, policy decisions to be made explicitly by 
policymakers, not hidden in the science.
    Mr. Ose. Dr. Hayward.
    Dr. Hayward. Nothing.
    Mr. Ose. Mr. Warren.
    Mr. Warren. I would like to focus on one aspect of that, 
since I discussed some of the points generally before, which 
is, I think everyone's common concern is that the Agency have 
the best science possible and that the science be used in the 
most effective way possible. And, I believe my concern about 
the organization into the three Under Secretaries is: that, 
again, the Under Secretary responsible for science and 
information is set apart from the Under Secretary for policy 
and planning; that you in some ways might unintentionally 
reinforce the balkanization of those functions within the 
Agency; and that now you will have even more powerful players 
responsible for activities that are not fully integrated. And, 
that whatever we do I think we at least do not want to make 
worse the bureaucratic tendency not to make science a function 
that the entire agency is concerned about at all times.
    Mr. Ose. Professor Steinzor.
    Ms. Steinzor. I won't repeat my points from before about 
reorganizing costing time and energy when we can't afford it. I 
will say, though, that I think that Terry Davies' proposals 
that Dr. Portney mentioned had to do with rewriting all the 
statutes to accomplish cross-media integrated regulation; and 
that would be a major, momentous task, as Terry Davies has 
acknowledged every time I have discussed it with him.
    I think it would be a very interesting debate, but it is 
not something that can be done simply by shuffling bureaucratic 
seats. In fact, as I understand your bill, the Assistant 
Secretaries could still be air, water, solid waste. They would 
be determined by the administrator. So we would still have 
unintegrated media-specific regulation. But I could be wrong 
about that. That is how I read it.
    Mr. Ose. That is one of the points of the hearing, is to 
try and get this input. So, thank you.
    The next question I have is in regard to the IG's report of 
November 2002, which examined the use of science in 16 post-
1994 rules. The Inspector General reported that program offices 
or their contractors developed virtually all the technical 
support documents that made the scientific case for the 16 
rules included in the study, with little input from the Office 
of Research and Development. Currently, program offices and not 
the Office of Research and Development do the scientific work 
in support of regulatory actions.
    The most widely criticized aspect of EPA seems to be the 
quality of its science. Both sides of the political spectrum, 
or maybe all sides of the political spectrum, claim that EPA 
does not use what is referred to as sound science.
    We are going to start with Professor Steinzor, and we will 
move to my left. Would you support the relocation of science 
from the program offices and the centralization of the science 
at the new department under a Secretary of Science and 
Information? And then, part of that question is, if you could 
define from your perspective what sound science is, that would 
be helpful.
    Ms. Steinzor. Well, I have actually written on that 
subject; and perhaps I could submit the article about science 
at the EPA for the record.
    Mr. Ose. Hearing no objection, we will allow that.
    Ms. Steinzor. I actually would share Mr. Warren's concerns 
about putting it in a separate organization. But I would also 
say, in a nutshell, that the problem of science at EPA is not 
that it is junk but that it is overly influenced by regulated 
industries. And, I would refer you to a GAO report that came 
out in 2001 that showed that when it was doing crucial peer 
review EPA was not ensuring that panels were balanced for bias, 
wasn't even asking panelists if they had conflicts of interest, 
such as working for companies that sell the chemicals that were 
being reviewed. And, that those kinds of problems, as I said in 
my written testimony, are much more urgent. Before we can make 
science sound, we have to make it clean. I guess that is what I 
would suggest.
    Mr. Ose. Mr. Warren? Do you want me to repeat the question?
    Mr. Warren. No, I think I remember it. But it raises many 
different issues at once. So I will do what I can to pick out 
what I think are the most important, which is that there should 
be fewer, more important, responsibilities and sound science at 
the Agency. Sound science is using the best available 
information according to generally accepted scientific 
protocols in a way that is transparent and can pass the test of 
an independent review. But I believe that often the claim of 
sound science is just used by critics of the Agency to dispute 
outcomes that they don't like when the underlying science may, 
in fact, be perfectly sound.
    So I think that we want to try to avoid making this issue 
just a political football within this legislative debate.
    Once again, I think I would say that I think it has been 
more a problem on the part of the Agency of having inadequate 
resources. You sort of get what you pay for. If you want more, 
better science, then you really have to sort of put money into 
it, and not use it, as an excuse not to take action until we 
know more, and then not really try to do what is necessary to 
find out more about the environment.
    I think that one of the essential points here, and this 
will be my final point, has to do with conflicts of interest 
and managing peer review processes at the Agency. In respect to 
the legislation, I have certain concerns about that for the 
Bureau of Environmental Statistics, that it creates a peer 
review process that in some ways, actually ironically while we 
are elevating the EPA on one hand to a Cabinet department, 
would subordinate the Agency to review by other Cabinet 
departments in ways in which they are not subject to review by 
the Department of Environmental Protection.
    So I believe that there are other ways to address issues of 
ensuring quality science and that those should be our top 
priorities.
    Mr. Ose. In terms of the centralization of the science at 
the new department as opposed to leaving them in a program or 
in the regional offices?
    Mr. Warren. If I can briefly address that issue, I would 
like to say again, this is a part of the Rubik's Cube that no 
one has quite figured out the solution to. Science is not one 
thing. The Agency needs to do several different kinds of 
scientific activities. One of those is to broadly look at the 
state of the environment and emerging environmental issues that 
people may have not thought about before, and a separate 
science office may properly do that. Several of those 
activities are to make sure that regulatory actions are 
directly supported by good science, and you may not want to 
separate that from the program office because you may actually 
worsen stovepiping.
    Last but not least, I would say that there is a role for 
the Agency to support work outside of the department, that not 
all of the work should be done in house, that in many ways, 
supporting the work of independent researchers can be much more 
fruitful in the long run.
    Mr. Ose. Dr. Hayward, same questions: Do you support the 
relocation of science from the program offices and the 
centralization of science at the new department under an Under 
Secretary, and what do you think constitutes sound science?
    Dr. Hayward. I don't really have a firm opinion on the 
first question, the narrow administrative question. The broader 
question that drives all of this is what is sound science. I 
have a very hard time answering that question in a meaningful 
way. It is a motherhood-and-apple-pie concept. No one is for 
unsound science. The difficulty arises when you have perfectly 
scrupulous and unbiased scientists who disagree and/or who 
produce results with large ranges of uncertainty, and that 
characterizes a lot of our science and environmental matters. 
So at the end of the day, it is not so much the soundness of 
the science that is in question, although it can be sometimes, 
as it is how we judge the risk threshold we decide to apply 
with the information we have, given the uncertainties we have.
    Dr. Gray knows a whole lot more about this than I do, so I 
am going to punt to him here in a minute. But ultimately, sound 
science gets subsumed in the political decisions about which 
particular risks we are going to go after and what threshold of 
risk we find reasonable or unreasonable, to bring up that term 
again. Just to conclude in one sentence, I don't think this is 
a problem that can or should be sorted out in legislation 
necessarily.
    Mr. Ose. All right.
    Dr. Gray.
    Dr. Gray. I think the first thing that I want to say is 
that it is important to recognize that EPA in fact does and 
uses good, sound science. They use peer-reviewed work, they 
publish work. They do and use good science. The question isn't 
the science, it is the interpretation of the science. This is 
exactly what Dr. Hayward was getting at. The interpretation is 
what is important. I think that is where peer review is 
necessary and it is one of the places that we don't look very 
often.
    In terms of structure, again as a scientist, I don't have 
strong opinions about how we think about the way to organize 
things, but my concern is that as long as the science is 
embedded in the program offices, there is a perception, if not 
the reality, that the scientists are used, are interpreting 
that science to get the right answer, the answer that will 
advance the policy of that program office. For that reason, I 
think that making a clean distinction between the scientific 
work, the scientific interpretation, and the policies in the 
program offices is something that will increase the credibility 
of EPA science and their decision.
    Mr. Ose. In terms of the person making the interpretation 
of the science, are you suggesting that we need to provide the 
maximum insulation, if you will, for that person's scientific 
credibility?
    Dr. Gray. Well, the way in which this sort of risk 
assessment and management process has been envisioned for many, 
many years is that it is very important to bring the best 
available scientific information to a problem, consider that 
information along with all of the other things that we want to 
take into consideration in coming to a decision. There is a 
perception, and you can see it, in fact, in, for example, EPA 
guidelines that influence the way in which the Agency and 
outside groups interpret data, how they are supposed to use 
scientific information to inform decisions, that there are 
policy choices, policy assumptions all through that have a very 
strong influence on what ends up coming out. They are not 
science; and in that way, they are contaminating the science 
with the policy decisions. The more we can make those two 
things separate to make distinct the scientific choice and the 
policy choice, I think the better, the more you would enhance 
the credibility of EPA's decisions.
    Mr. Ose. Thank you. Dr. Portney, we know that you would 
trade everything for the establishment of the Bureau of 
Environmental Statistics. Would you still care to offer some 
comments on this question?
    Dr. Portney. Not everything. I would still keep my 
stepchildren. I want the record to reflect that.
    Two things here. First of all, we all know what the 
definition of sound science is. It is that body of studies that 
supports what it is you want the Agency to do, and the body of 
science that supports what you want the Agency not to do gets 
deemed unsound science. I mean that is de facto; I think that 
is the way this debate has evolved.
    Congressman Ose, I really think there is a tradeoff in 
centralizing science at the EPA. I certainly can see some 
advantages, because I think as you look across the program 
offices even within the EPA, not to mention the way science 
gets conducted between the EPA and other Federal agencies, you 
see certain inconsistencies with respect to high to low-dose 
extrapolation, etc. EPA has worked very hard to try to 
centralize this through the risk assessment guidelines that the 
Agency establishes, but I think you could probably improve on 
some of the inconsistencies through some kind of centralization 
of science.
    The other side of that tradeoff, though, is the following: 
as the science gets pushed up to or out of the program offices, 
you run the risk of the science becoming irrelevant to or not 
directly connected to the regulatory problems that the program 
offices have to deal with.
    Briefly, I can give you one analogy. The same issue has 
been debated within the Occupational Safety and Health 
Administration, and there was concern that by virtue of having 
the research done within OSHA, somehow the quality of the 
science wasn't very good and it was being driven by the answers 
that OSHA wanted the scientists to find. So a separate agency 
was created, the National Institute of Occupational Safety and 
Health. I presume that the quality of the science done at NIOSH 
is better than the quality of the science that was done within 
OSHA, but the complaint is that the regulators at OSHA feel 
that NIOSH funds basic research and doesn't produce scientific 
research that helps the OSHA regulators actually deal with the 
problems that you and other Members of Congress have directed 
them to deal with.
    So you can improve science on the one hand, but sometimes 
it is at the risk of making the science relevant to the 
individual regulatory decisions that the Agency has to make.
    Mr. Ose. Is it your point that before NIOSH was 
established, there were problems in separating the science from 
the policy?
    Dr. Portney. That is my understanding, and that the idea of 
creating NIOSH was to professionalize and elevate the quality 
of the science that was conducted.
    Mr. Ose. And, even in its establishment and existence, 
there remain problems?
    Dr. Portney. What I have heard in the past from people at 
OSHA is that NIOSH has become a research agency whose mission 
has become somewhat divorced from the day-to-day problems that 
OSHA has to regulate, and that some of the science funding 
drifted in the direction of basic science, rather than more 
applied issues that were germane to the individual regulatory 
problems that the Agency had.
    Mr. Ose. Dr. Gray, on page 2 of your written testimony you 
state that the change in the department's structure will 
require further tweaking to ensure that science policy does not 
influence the conduct and interpretation of scientific 
information. You touched on that a moment ago.
    Do you have a specific solution in mind relative to the 
further tweaking that you reference in your statement?
    Dr. Gray. I think something that I would like to suggest, 
because this does exactly address the notion that I was 
speaking to a moment ago about the separation of policy and 
science. There are some very nice guidelines, draft guidelines 
for policy analysis, that address many of these issues 
separating the science from the policy, and those are in some 
draft guidance from the Office of Management and Budget that 
came out in February. I would recommend that you look closely 
at those as guidance for doing analysis which supports EPA 
regulations while keeping the policy attributes as distinct 
from those as possible.
    Mr. Ose. Are you asking that they be made a part of the 
record?
    Dr. Gray. Yes, please.
    Mr. Ose. Hearing no objection, we will do that.
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    Mr. Ose. Professor Steinzor, on page 4 of your written 
testimony, you have four suggestions for reforming science at 
EPA, including removing peer review panelists with ties to 
regulatory outcomes, prohibiting research contracts limiting 
adverse results and requiring full disclosure of all data, 
science, and techniques submitted by industry and, fourth, 
requiring more balanced peer review.
    Do you have legislative language implementing these four 
suggestions?
    Ms. Steinzor. I don't have legislative language. CPR 
believes these issues are very important to pursue, but again, 
would do it outside the context of the Cabinet-elevation bill.
    Mr. Ose. Could we send you a followup question in writing 
to get some feedback on that?
    Ms. Steinzor. Certainly. I would be delighted by that 
opportunity.
    Mr. Ose. All right. I appreciate that.
    Now, relative to these four suggestions by Professor 
Steinzor, do any of the other members of this panel have 
suggestions, observations? I don't know if you have seen her 
testimony or not.
    Dr. Gray, have you had a chance to look at it?
    Dr. Gray. I haven't. All I would suggest is that peer 
review is important. We want to encourage peer review and we 
want it to be credible, and I think that anything that 
increases the level of disclosure in that peer review is very 
important. I think we have to make sure that we keep peer 
review focused on expertise, but within that world, I think 
more disclosure of potential conflicts of interest and other 
sorts of things is very important.
    Mr. Ose. Let's examine that for a minute. With respect to 
my business career, I had everybody telling me that I should 
have done something differently and they could have done it 
better. Let's examine for a moment what the purpose of peer 
review is and how you get it.
    The EPA's Inspector General in November 2002 noted that 
critical science supporting their rules was often not peer 
reviewed by an independent body, and that caused some 
uncertainty relative to the quality of the science supporting a 
rule.
    Now, tell me how the peer review thing works.
    Dr. Portney, how does peer review work in this process, 
from your perspective? What is your experience with it?
    Dr. Portney. Well, I have had both favorable and 
unfavorable experiences with peer review in the sense that I 
have done research which has been turned down when I have sent 
it to a peer-reviewed and refereed journal, but I think that 
process is very, very important.
    The way it works is, you conduct a body of research, 
whether it is toxicological or legal or economic or whatever. 
You try to do this to the highest standards, collect the data 
according to the best protocols, analyze it in as sophisticated 
a way as possible, you write up the research and you send it to 
the best journals in one's respected profession.
    The editor of the journal then typically selects one or two 
or three reviewers, generally reviewers whose identity is not 
known to the person who has written up the research, and they 
decide whether or not that research merits publication. They 
send referees' reports to the editor of the journal, and 
ultimately the journal editor makes a decision as to whether or 
not it is publishable.
    And,I think that this process, while certainly having all 
kinds of problems, as any process does involving human beings, 
I think it is absolutely essential, and to the greatest extent 
possible, the EPA or any other regulatory agency ought to try 
to rely upon as great an extent possible research which has 
been through this review and vetting process and has passed.
    Ms. Steinzor. Mr. Chairman.
    Mr. Ose. You are actually exactly where I was going to, 
Professor, so I appreciate your raising your hand.
    I do want to ask a question, because this same EPA 
Inspector General report noted that 276 of 496 critical 
documents supporting the rules that were put forward were 
either not peer reviewed or their peer review status was 
indeterminable that is we were unable to determine whether or 
not it was done.
    Now, I want to come back to you because it is your original 
point we are talking about, one of those four, if you will. How 
do we deal with this peer review requirement under the 
parameters you have described?
    Ms. Steinzor. There are two different kinds of peer review 
I think that are at issue, and one is what Dr. Portney was just 
talking about, peer review by professional journals. EPA has 
its own process for peer review which is done by the Science 
Advisory Board, and it was the operations of that board that 
were criticized by the GAO for compiling peer review panels 
that the members never asked to disclose what their 
affiliations were.
    So one answer is to clean up the SAB and have it do peer 
review in a more balanced, less biased, with full disclosure, 
more transparent way.
    The problem with relying on peer-reviewed journals is that 
many of the questions that EPA is dealing with have to do with 
the effects of exposure to certain kinds of chemicals. And, 
unlike the pharmaceutical industry, there is not as lively a 
publication market for those kinds of studies, and they are 
often done by the companies who manufactured the chemical, 
which is the party that is most interested in what the results 
of the study would be. I have no question about that. The 
problem is that if the study itself has not been peer reviewed 
by publication and an independent journal and, instead, arrives 
at EPA to be peer reviewed, it needs to go to the Science 
Advisory Board, and it also needs to be accompanied by all the 
underlying data or no one can tell what is going on. And, that 
is the recommendation that I am making.
    Now, Dr. Gray said we need to focus on expertise, and I 
agree with him. We certainly can have incompetent scientists 
doing peer review. The problem is that if you say expertise in 
a specific chemical, the only people that have very well-
developed expertise in a very specific chemical are the people 
that make it, and you can't have people peer reviewing 
themselves.
    Mr. Ose. How do we deal with that?
    Ms. Steinzor. I think it is very important to balance these 
panels for bias and to look long and hard for people who are 
independent in the academic community. They do exist. And to 
balance, I mean not to have people on who have a direct 
financial stake in the outcome of whatever the regulatory 
decision is.
    A company that makes chemical----
    Mr. Ose. I think you just said that the people who know the 
most about a chemical are probably those who put forward the 
request for a peer review of their product. In other words, the 
people who manufacture----
    Ms. Steinzor. They do the studies.
    Mr. Ose. They do the studies, and they are probably the 
most knowledgeable about the product in terms of its scientific 
impact?
    Ms. Steinzor. Well, that's right, but should we have 
somebody who has done a study for a company that stands to 
benefit financially look over his own study and decide if its 
adequate?
    Mr. Ose. I am trying to figure out if we are looking for 
quality peer reviewers, if you will, if the best are with 
industry, how do we get an appropriate peer review panel? This 
argument is circular.
    Ms. Steinzor. Well, there are independent academic 
scientists. I actually think it is fairly well established that 
if you have a financial stake in the outcome of a decision, you 
are not allowed to be a peer reviewer. The problem with EPA's 
SAB was that there was no disclosure, so you couldn't tell if 
somebody had a financial stake. But what I am suggesting is, if 
you have people like that serving, you also need people who are 
expert in the area of the effects that are being investigated, 
who are not affiliated with industry; otherwise, you end up 
having a perception that the fox is guarding the chicken coop.
    Mr. Ose. So the current rules or statutes preclude someone 
with a direct financial interest from participating in the peer 
review, even though there is no means of investigating whether 
that is the case or enforcing it?
    Ms. Steinzor. Well, there are means of investigating and 
there are means of enforcing it. It can be waived on occasion 
by the Agency. It has been. But the problem was that EPA's 
practice was never to ask.
    Mr. Ose. I see.
    Ms. Steinzor. So there are tools, but the Agency wasn't 
implementing them.
    Mr. Ose. The other panelists--I would like your input on 
this issue; it is kind of like the chicken or the egg, speaking 
of the fox and the henhouse--Dr. Portney, Dr. Gray, Mr. Warren?
    Dr. Portney. Sure. If I could briefly, I understand what 
Rena Steinzor is saying, and I think I agree with her. As a 
former member of EPA's Executive Committee of the Science 
Advisory Board, I do think in the past the Science Advisory 
Board has had people on peer review panels who have not made 
clear, or the SAB has not asked them to make clear, what their 
ties may be, whether or not they are a scientist employed by a 
pharmaceutical company or a chemical company or a research 
scientist, most of whose research has been supported by a 
company. I mean, I can't see any reason why you wouldn't 
require people to make clear the sources of their support.
    But I think you are absolutely right. As Professor Steinzor 
points out, in some cases, the people who know the most about 
and are the best, the most technically versed in research about 
a particular substance, are often the people who derive their 
livelihoods from studying that; and I wouldn't want to see them 
excluded from a peer review panel. I think they ought to have 
the right to participate, so long as they disclose their 
backgrounds, where the research support comes from, etc. I also 
agree with Rena that there are people out there who have no 
ties, financial or otherwise, to the production process, etc., 
in question who can be found to sit on these panels and every 
effort should be made to include them.
    Mr. Ose. Mr. Warren.
    Mr. Warren. Well, NRDC does support the type of reforms 
that Ms. Steinzor has been describing. There are two important 
objectives. One is you want balanced expertise, and two you 
also want transparency and as little conflict of interest as 
possible.
    So in many ways this goes to the heart of the issue of what 
the Agency really needs to be focusing on to ensure sound 
science. It requires an extra effort for the Agency to beat the 
bushes, as it were, to get people who don't have a direct 
interest or a conflict of interest where the review is 
concerned. But we need much better disclosure to ensure the 
transparency where participants in the panel may have conflicts 
of interest.
    Mr. Ose. Dr. Hayward, any input? Dr. Gray.
    Dr. Gray. I would just say very briefly that this can be 
done. I serve on a variety of national advisory committees at 
the National Institute of Environmental Health Sciences for the 
Food and Drug Administration, where this is done routinely. 
Disclosure is done, things are vetted, and people know where 
people are coming from; and it can be done and it is done.
    Mr. Ose. Let me examine that for a minute. In terms of the 
disclosure that you undergo as a participant in these bodies, 
give us some sense of what it is you put on the table.
    Dr. Gray. Well, for example, serving on the National 
Advisory Environmental Health Sciences Council, which advises 
the National Institute of Environmental Health Sciences, I 
disclose everything from my sources of income, my wife's 
sources of income, investments that we have, sources of funding 
for my research, in complete detail. So I think almost anything 
that one could imagine could give a clue as to someone having a 
potential conflict of interest is examined by, in this case, 
the Department of Health and Human Services to determine 
whether--and there are times, potentially, where one could be 
asked not to comment on specific issues because it is 
inappropriate.
    Mr. Ose. Has that ever happened?
    Dr. Gray. Not to me. And, I am sure that it has happened on 
this council. An event doesn't come to mind, but I am sure that 
it has happened.
    Mr. Ose. OK. If you put information on the table of that 
nature and someone challenges it, is it a requirement for 
disclosure, or is it a disqualifier for participation?
    I want to be clear on this. In other words, if you just 
disclose it, does that meet the requirement, or does it 
actually serve as a disqualifier for participation?
    Dr. Gray. No. There is a specific individual within the 
department that then reviews this information, and for a 
particular meeting that is coming up and a particular topic 
that is going to be discussed, that person makes a judgment 
about whether it is appropriate for me, for example, to speak 
on this or not because of a conflict of interest.
    Mr. Ose. OK.
    Dr. Gray. So a judgment is made. It is not just disclosure, 
but a judgment is also made.
    Mr. Ose. All right. Let's go on to the next question here.
    EPA does not have a mechanism, an adequate mechanism, for 
systematically collecting and analyzing current environmental 
and human health data. H.R. 2138 provides for a Bureau of 
Environmental Statistics modeled after the Bureau of Labor 
Statistics and the Energy Information Agency. H.R. 2138 
provides that the Bureau shall collect environmental quality 
and related public health and economic information, including 
data on ambient conditions and trends and distribution of 
environmental conditions and related public health conditions 
across populations.
    Dr. Portney, I believe you proposed this concept in 1988, 
and I am frankly hopeful that with this bill it will finally 
become a reality. I am going to allow you another opportunity 
to say that you support the Bureau of Environmental Statistics 
within the new department, so the first question is, do you 
support that; and the second question is, does the EPA 
currently collect valid statistical data on the quality of the 
environment, including health outcomes such as morbidity and 
mortality data?
    Dr. Portney. Well, I am relatively indifferent on the 
creation of a bureau! I have made it abundantly clear that I 
support that. With respect to the provision of data on health 
outcomes, I will just echo something I said earlier and I will 
do it briefly.
    The farther a Bureau of Environmental Statistics has to get 
from providing data on ambient environmental quality or 
emissions from sources, the more difficult its job becomes. Let 
me give you an example.
    Some people have suggested that there is a link between 
ambient air pollution and the apparently increasing incidence 
of asthma. I think asthma is a very serious public health 
problem. It is hard for me to understand how it can be linked 
to deterioration in air quality, though, because as Steve 
Hayward and other people have pointed out, air quality has 
improved in every metropolitan area around the United States 
consistently over a 30-year period with respect to every air 
pollutant. So if asthma is getting worse at the same time air 
pollution is getting better, either it is linked to an air 
pollutant for which we don't currently collect data, or 
something else--lice, fungus, etc.--is causing the increase in 
asthma.
    The point I am trying to make is that if the Bureau of 
Environmental Statistics had to present evidence, collect and 
disseminate evidence on the incidence of asthma, that would 
create the presumption that somehow that is an environmentally 
mediated disease, and in fact, I think there is reasonable 
doubt about whether or not that is the case. In other words, it 
is not like smoking and lung cancer or some other disease where 
there is a one-to-one link.
    So as long as we are talking about ambient air quality, 
water quality, land contamination, drinking water quality, 
etc., then I think it is a no-brainer for the Bureau of 
Environmental Statistics. It gets more challenging the farther 
away we move into the health and economic area.
    Mr. Ose. Are you suggesting that the Bureau would serve to 
facilitate the cross-media analysis of environmental concerns?
    Dr. Portney. Well, to some extent, I guess. I think that 
its mission ought to be to report to you, the Members of 
Congress, people in the administration and in the general 
public the kind of progress we are making on environmental 
quality; thus, a Bureau of Environmental Statistics. We have a 
National Center for Health Statistics that presents evidence on 
trends in respiratory disease, cardiovascular illness, etc. I 
don't want to see the BES verge too far from the principal 
reason for creating it, for fear, to some extent, that we would 
undermine support for it.
    Mr. Ose. OK.
    Professor Steinzor.
    Ms. Steinzor. Mr. Chairman, I want to respond to this point 
that air quality is getting better and, therefore, asthma must 
be due to other causes by saying that, first of all, we live in 
an area that is severe nonattainment for ozone, and there is 
not any question that the Baltimore and Washington metropolitan 
areas are not going to make attainment by 2005.
    So while there may have been a broad trend toward 
improvement, it is very clear that many metropolitan areas in 
the country--Houston, Los Angeles, Atlanta, etc.--are not going 
to make attainment of levels necessary to protect health by 
2005; and when the new fine particulate matter standards come 
into effect, they will fall even further behind.
    So a broad trend does not make a safe, health-based level, 
and our cities are in very serious trouble, and are going to be 
back in front of you very shortly, begging for yet another 
extension. I think this would be the fifth one for the area 
that we live in.
    So perhaps I am a little sensitive on this as the mother of 
an asthmatic child, but I think we need to be careful; and this 
is an illustration of how the Bureau of Environmental 
Statistics, to get to your original point, needs to be 
constructed and implemented and handled very, very carefully.
    Mr. Ose. All right.
    Mr. Warren, any input?
    Mr. Warren. Well, I believe that the objective is 
definitely desirable. I think we all want more, better 
environmental information. Representing an environmental 
organization, I believe that will support in the long term our 
claims that environmental protections on the books have been 
worthwhile and that more environmental help is necessary.
    I believe that the Agency already has the authorities to 
fulfill the sort of charge that you described, that it is, by 
and large, a resource issue, that you can only do so much, that 
you can only do what you have the resources for, and that 
merely moving these functions around into one place in the 
Agency and calling it a ``bureau,'' I don't think by itself, 
will ensure that the information is better.
    Mr. Ose. Dr. Hayward.
    Dr. Hayward. Well, I can't help but weigh in a little bit 
here on the question that is engaged at the ends of the table 
on pollution and asthma.
    You represent part of Solano County, I think?
    Mr. Ose. I come from a severe nonattainment area also.
    Dr. Hayward. Which is what, Sacramento?
    Mr. Ose. Yes.
    Dr. Hayward. Yes. I lived there for 6 years. I looked at 
California counties very closely between the air quality status 
and their asthma rates, and I found an interesting thing.
    Right now, the highest asthma rate in California is Fresno 
County, and it also has right now the highest exceedences of 
the new ozone standards, actually even more than the South 
Coast's, which is a remarkable record of improvement. The next 
two highest rates of asthma in California are Marin County and 
Solano County, both of which have had zero exceedences of the 
ozone, the new ozone standard for the last 3 years, and then it 
jumps around as you go on down. San Bernardino and Riverside 
Counties, which are the next worst places, are sort of in the 
middle on their asthma rates.
    I mean, any statistician would tell you that an air 
pollution/asthma correlation will not pass the statistical 
significance test. Now, we can argue about this for a long 
time, and I think we will. But this illustrates the difficulty 
that Paul, I think, is trying to bring up between correlating 
environmental conditions and health standards. This falls into 
that large area we referred to earlier of great uncertainties 
and the science of this, the sound science of all of this.
    I just wanted to add one other little clarification. You 
know, the way we regulate air in cities, we have dozens of 
monitors in the large areas. If a single monitor is out of 
compliance, the whole metropolitan area is deemed to be out of 
compliance with the Clean Air Act. That makes perfect sense 
from a regulatory point of view because downwind areas may be 
getting their pollution from the upwind areas. In other words, 
in San Diego, it turns out there has only been one monitor out 
of compliance with the ozone standard in the last 3 years, out 
in the eastern part of the county, where less than 1 percent of 
the population lives. I don't know what the monitors look like 
for Washington and Baltimore, but in San Diego, 99 percent of 
the population is not exposed to ozone that exceeds the 
standard.
    So it is a mistake in my mind to say, therefore, the entire 
population of San Diego is at risk of asthma because that area 
is found out of compliance with the Clean Air Act.
    Mr. Ose. Your point is the quality of the information or 
the quality of the monitoring could stand improvement?
    Dr. Hayward. Well, no, the quality of how we interpret and 
understand how localized problems are.
    Mr. Ose. Would a Bureau of Environmental Statistics help or 
hinder improving the quality?
    Dr. Hayward. I think it would help. I don't think it solves 
any of our difficulties of the links, as Paul has tried to say, 
I don't think this solves any of our difficulties with the link 
between pollution and health effects that we currently argue 
about.
    Mr. Ose. That is a different question.
    Dr. Hayward. Right.
    Mr. Ose. Dr. Gray.
    Dr. Gray. To answer the first part of your question, EPA 
does gather some very good and very useful data in some areas, 
and that is very important for us. One of the problems that I 
tried to illustrate in my testimony is that in many ways, 
people don't know about those data, and it may well be that is 
why most Americans think the air today is less clean than it 
was 10 years ago when all of the data that have been collected 
suggest the opposite is true.
    I think that having an independent group, that perhaps is 
seen as not having some of the same conflicts of interest as 
EPA might have in these statistics, might increase their 
acceptance and increase people's willingness to understand 
their knowledge about the state of the environment.
    I do want to comment on this issue that has come up about 
health effects and whether those are appropriate for a Bureau 
of Environmental Statistics. A very large fraction of EPA's 
regulations are expressly based on the notion that they are 
going to decrease risk to human health: Particulate standards 
will reduce mortality and morbidity; the ozone standard will 
reduce rates of disease. If we don't monitor those diseases, 
how will we know if the progress is being made? Just simple 
changes in the indicator chemicals doesn't take us to the point 
that, in fact, justifies that entire rule.
    I think it is important that a Bureau of Environmental 
Statistics does include not just measuring parts per million of 
something here and there, but tries to get at these notions of 
health effects so we can understand whether these rules are 
having the effects that they intended.
    That said, it is a very difficult thing to do. And in fact, 
I said in my testimony, for example, meeting the arsenic 
standard is something that probably would never be detected in 
a town. The fact that those risks are so small is also useful 
information for people to know that we are looking at risks 
that we are not going to be able to find in our public health 
statistics. That is information that should be in the national 
debate about the kinds of programs that we are undertaking.
    Mr. Ose. Is the Bureau of Environmental Statistics an 
appropriate place to collect that information?
    Dr. Gray. I think it is a very good idea because of its 
independence and, I think, because of its peer review function, 
the idea that people are checking on the techniques, the tools, 
and the models that are being used.
    Mr. Ose. OK.
    Mr. Warren, I was perplexed by something on page 7 of your 
testimony. You were talking about your concerns about the 
Bureau's confidentiality provisions on any statistics they 
gather, and I think the direct quote is ``Such confidentiality 
provisions may, in fact, bar the distribution of valuable 
information that the public receives presently under current 
law.''
    Could you explain that? I don't know if you have it with 
you or not, but have you identified in the proposed legislation 
itself, the specific language that you believe is the source of 
that debarment, or disbarment?
    Mr. Warren. I can give you an example of it. We are in the 
process of reviewing the details of it. I have to say that 
issues like this, and the scrutiny that would require to go 
through all of the provisions of the legislation is again one 
of the reasons we would prefer at this point to just have a 
simple elevation. Issues like this should be dealt with at 
another time and place.
    But in this particular case, one of our concerns was 
provisions of the Clean Air Act that required the disclosure of 
certain kinds of emission data. So we are currently looking at 
whether the general confidentiality statement could be 
construed as conflicting with that provision of the Clean Air 
Act. We understand you have a savings clause in the back, so 
there would have to be some interpretation of how that savings 
clause would be reconciled with those provisions. But as you 
know, any subsequent legislation always takes precedence over 
prior legislation, all other things being considered, and I 
think it follows into one of those areas of concerns that has 
been expressed before about unintended consequences and perhaps 
litigation quagmires.
    Mr. Ose. Well, as we are sitting here, I am just reviewing 
the confidentiality provisions, and I understand the issue as 
it relates to the Homeland Security Act of 2003 in terms of 
information put forward pursuant to that particular 
legislation, but there are caveats here prohibiting the 
director, in some cases, from disclosing any personally 
identifiable or corporately identifiable data collected by the 
Bureau, but also giving the director the opportunity to take 
action to collect such data from any department or any other 
Federal agency. I am trying to find the specific language in 
here that your concern stems from.
    Mr. Warren. Well, of course, collecting the information 
from other agencies is really not the question. The question 
here is under what circumstances, what kinds of information 
might be disseminated to the public, and whether the general 
statement of confidentiality in this legislation would be seen 
as being in conflict with that provision of the Clean Air Act 
that distributes information to the public on emissions data.
    And, I would like to make it clear that in our testimony, 
we raised this as a concern as opposed to an objection and sort 
of said, I think your language should be double-checked, which 
we are in the process of doing. So I want to be fair. I want to 
say that perhaps we will do further research and say that this 
is not a concern. But on the other hand, I think it does raise 
a suite of issues in terms of additional scrutiny that these 
types of provisions need to be given where they may conflict 
with a range of statutes.
    Mr. Ose. Why don't we send you a question in writing asking 
you to specify the language in the bill, the proposed 
legislation that generates your concern on this confidentiality 
issue?
    Mr. Warren. We would be glad to respond to that.
    Mr. Ose. We are going to go to the next question.
    H.R. 2138 provides that the Bureau's director shall not be 
required to obtain internal departmental approval on the 
collection, analysis, dissemination, or publication of its 
data. What we are trying to do is insulate the director from 
the vagaries of political trends. What we want is the data as 
it is scientifically delivered.
    Now, we will start in middle here today. Dr. Hayward, do 
you support an independent director of the Bureau of 
Environmental Statistics? If so, why? If not, why not? And, 
does the language in H.R. 2138 provide adequate protections to 
the integrity of the proposed Bureau's efforts?
    Dr. Hayward. Well, I am not a lawyer or an expert on 
statutory construction, so I don't have an opinion on the 
second half of that question.
    But as to the first half, the reason I like the idea is 
that, as I look around at data sources in government, it 
strikes me that the Bureau of Labor Statistics which, by the 
way, took some time--when it was forged, I think in the 
1930's--to establish its credibility, to filling out some of 
the methodological problems on data gathering and 
interpretation; and even, still, today there is debate about 
some of their findings. But the Bureau of Labor Statistics and 
I think an equally or maybe better model is the Energy 
Information Administration, whose data I think is universally 
respected across the political spectrum. It has been 
independent from political pressures to a very large degree, so 
I think those are good models to emulate.
    Mr. Ose. Mr. Warren, any input on this? We will add the 
caveat, if we set up the Bureau of Environmental Statistics.
    Mr. Warren. Well, that is an important caveat, because 
otherwise I would be compelled to say that I don't think in 
terms of the criticisms of EPA in the past that their head 
science officials, in fact, have had their credibility or 
integrity challenged in terms of how they operate.
    So while I believe that we all believe that science should 
operate according to sound principles and not be subject to 
undue influence of some sort, I don't actually think that has 
been even the basis of the criticisms of the Agency science.
    So I have to counterbalance the stated desire to ensure the 
independence of the head of the Bureau of Environmental 
Statistics with the concern of the isolation of that office 
from being policy relevant. We would certainly want to make 
sure that to the extent sound environmental information is 
collected and generated, that it was properly integrated into 
the rest of the organization, and there would be tension 
between their independence and that integration.
    Mr. Ose. Dr. Gray, any input on this?
    Dr. Gray. I just think that independence increases 
credibility and the credibility of these data are going to be 
important to their use in evaluating our environmental 
progress.
    Mr. Ose. All right.
    Professor Steinzor.
    Ms. Steinzor. I would only urge you to consider that the 
States are responsible for generating a lot of this data, and 
have, in the past, resisted vigorously EPA's efforts to get 
them to cough more of it up, largely because they feel very 
stretched in terms of resources.
    And, to give just another example, I don't know if you, 
when you are here, live in Maryland, but we have a State agency 
that went from $232 million budget in fiscal year 2001 to $164 
million in fiscal year 2004, a 30 percent cut. And, I would be 
very surprised if that wasn't happening all over the country.
    So they will scream, and that will be a problem without 
Federal help.
    Mr. Ose. OK.
    Let me go to Dr. Portney first.
    Dr. Portney. Go ahead.
    Dr. Hayward. Something that just occurred to me: The EPA 
probably in the next couple of weeks is going to come out with 
a report on the state of the environment that they have been 
putting together for probably a year and a half now. They 
probably haven't done one since 1989. I haven't seen any 
advanced peeks, I am going to see one next week, but what I 
hear from those involved is that it has suffered from the usual 
interagency squabbling because they are trying to do things 
that are covered under the Department of Interior, the 
Department of Agriculture and the Forest Service purview and so 
forth.
    So the likelihood is that it is going to reflect some of 
the usual clashes and compromises and concessions for an 
interagency process to try and do this and, therefore, it will 
be of limited value, I think. That, to me, is an argument in 
the obverse for doing it the way you propose to do it.
    Mr. Ose. Dr. Portney.
    Dr. Portney. I am strongly supportive of the language that 
you have written into the bill that would protect the 
independence of the director, and let me give you an example.
    Coming down here to testify today, I was in a cab, the 
driver of which had on one of these talk radio shows that said 
that in new information released yesterday by the Bureau of 
Labor Statistics, the unemployment rate has risen to 6.1 
percent. Then they had a call-in, and the people who called in 
argued about why it had gone up to 6.1 percent. Is it 
administration policies? Is it overall economic deterioration 
around the world? No one said that the unemployment rate is not 
really 6.1 percent, that the Bush administration is lying.
    Everybody understands that given the way that we measure 
unemployment, that 6.1 percent is an honest measure, given the 
procedures that we have established for that.
    I think it is really important that an independent Bureau 
of Environmental Statistics be able to say that air quality in 
Baltimore has deteriorated or improved with respect to this 
pollutant, and have the nature of the policy debate center 
around whether or not it makes sense to spend money to further 
improve air quality or prevent deterioration when, in fact, I 
think we spend too much time arguing about whether or not air 
quality really is as we have stated it or we have discussed 
today: Well, is it because the monitors are located where they 
are, or is it because there are only two monitors in this 
metropolitan area?
    I really think elevating EPA to Cabinet status, as you have 
proposed, and incorporating in that a Bureau of Environmental 
Statistics will force us to confront these issues and get the 
public focused on the kinds of questions that we ought to be 
focused on.
    Mr. Ose. There is a related question here.
    Dr. Hayward, you just talked about a report coming out on 
the status or the condition of the environment, the last having 
been issued in 1989. There is a requirement in the legislation 
that the Bureau's director submit an annual report to Congress 
and the Secretary, as well as the public. Would this be useful? 
Does it help the process? Does it introduce accountability, 
both to the Department or the Bureau? Is it too much? Is it too 
little?
    Dr. Hayward. Oh, boy. A whole basket of questions there. I 
mean, I think it is helpful in that it would help move forward 
public understanding of environmental issues beyond, as I put 
it, environmentalism by anecdote and policy by headline. That 
is a general thought.
    Mr. Ose. Mr. Warren.
    Mr. Warren. I don't disagree with that really.
    Mr. Ose. OK.
    Dr. Gray.
    Dr. Gray. I don't have a comment, other than it would be 
helpful, and I think that annual helps us track things a lot 
better than every 12 years or 13 years.
    Mr. Ose. Professor Steinzor.
    Ms. Steinzor. I agree with that and think that 
environmental indicators are a very important tool. But if they 
are to achieve the status that Dr. Portney just described, 
which I also agree with everything he said, they need to be 
done very honestly and be comprehensive.
    Mr. Ose. Dr. Portney.
    Dr. Portney. I agree with what I said earlier.
    Ms. Steinzor. He agrees with himself.
    Mr. Ose. All right.
    During the subcommittee's prior hearings, witnesses 
testified that EPA's program offices occasionally operate as 
fiefdoms that impede innovation and efficient regulations, that 
do make national policy and that do conduct science without 
coordination of scientific data. The program offices also 
reflect the piecemeal organization of environmental statutes.
    H.R. 2138 locates program offices under the supervision of 
the Under Secretary for Policy, Planning and Innovation. The 
bill's goal is to have a central regulatory and policy office 
that works with the program offices under the direction of an 
Under Secretary.
    Professor Steinzor, do you support the centralization of 
policy under the Under Secretary for Policy, Planning and 
Innovation as proposed under H.R. 2138, and would that 
centralization facilitate some cross-media rulemaking?
    Ms. Steinzor. I don't support it, because it would separate 
the people who write the regulations from those who implement 
and enforce them. And while I think that cross-media 
integration would be a useful goal, it is not clear to me that 
separating things out by function would make any difference in 
that area.
    Mr. Ose. OK. Mr. Warren.
    Mr. Warren. I think my concern in this case is that this 
particular Under Secretary really acts as the super-Under 
Secretary by consolidating all of the policy and planning 
functions under that secretary. My perception is that Under 
Secretary would have much more authority within the Agency as a 
whole than the other two; and that, in effect, what you have 
done is, whereas now, you have several Assistant Secretaries 
reporting to the deputy administrator and then the 
administrator, you have replaced the deputy administrator with 
this Under Sectretary, and then left out science and 
enforcement; and that those two Under Sectretaries now operate 
all outside of the other policy review and planning process 
that is being channeled up to the secretary.
    And I would just have to ask the question, why aren't 
science and information and monitoring and enforcement somehow 
being given a status where they are much more integral to the 
policy and planning process?
    Mr. Ose. Dr. Hayward.
    Dr. Gray, any input on this? I will repeat the question if 
you want me to.
    Dr. Gray. That is OK. I do think that this sort of a 
structure helps ensure the credibility of the scientific 
decisions that are made.
    I do think that it is important not to repeat the mistakes 
of the past and have these be stovepipes. As Steve said, we 
don't want just three bigger, thicker stovepipes. I think we 
want to make sure that they are surrounded by perhaps a screen 
rather than steel, so that there is communication back and 
forth between enforcement and science and the policy offices.
    Mr. Ose. Dr. Portney.
    Dr. Portney. I do think that the administrative arrangement 
that you have proposed would facilitate a little bit more 
awareness that solving an air pollution problem can sometimes 
create a water pollution or a solid waste problem.
    So I understand the administrative advantages of the 
decisions that you have made in the proposed legislation. 
Ultimately though, I think, Chairman Ose, the real problem 
comes as a result of the fact that the Clean Air Act tells 
EPA's Office of Air and Radiation to solve air pollution 
problems and doesn't tell it what to do if in the process of 
solving an air pollution problem you create a solid waste 
problem that is even greater.
    So I think this gets----
    Mr. Ose. Or a water problem.
    Dr. Portney. Exactly. Exactly right.
    So you get us part of the way there. To get all the way 
there, I think Congress may have to look at all of the statutes 
together and decide how can we give the Agency the power to 
avoid creating a bigger problem in the process of solving a 
smaller one.
    Mr. Ose. I think the poster child for my concern here in 
terms of this cross-media issue is the efforts we made in 
California, for instance, to have cleaner air emissions for 
MTBE and the consequence to water pollution from leaking tanks 
where the MTBE just drops right to the water table. I am trying 
to figure out how it is we prevent a similar situation from 
arising with some other well-meaning scientific advancement.
    What this really boils down to is, and Mr. Warren led me to 
this thought in the first place--what is to prevent the Under 
Secretary for Policy, Planning and Innovation maintaining the 
focus on air, water, land, in the context of their everyday 
deliberations anyway?
    Professor Steinzor, any input on that?
    Ms. Steinzor. Well, I think you are right, there is nothing 
that would prevent it, and it may just be that there is no way 
to accomplish this other than going through the statutes and 
deciding how to integrate all of them.
    Mr. Ose. Because those statutes----
    Ms. Steinzor. The Clean Air Act, the Clean Water Act.
    Mr. Ose. We are not even trying to do anything with them. 
What did he call it, a savings clause?
    Ms. Steinzor. Savings clause. I guess what I am saying is, 
I think that is the unavoidable problem, that if you don't 
change them, there is an irresistible temptation to set up 
offices that have to accomplish rulemakings under deadlines 
because the Agency has been very slow.
    May I address MTBE?
    Mr. Ose. Certainly. If you have any thoughts as to what we 
can do about that, I would welcome them.
    Ms. Steinzor. Well, the President of CPR is writing a book 
on MTBE, so he would welcome, if you asked a question about it, 
to provide you with information. I think he would say, if he 
was sitting here--and this is Thomas McGarity, who is a 
professor of law at the University of Texas--that in fact, 
California EPA did not say do MTBE; it was the industry that 
chose that additive, and that the problem was that the tanks 
were leaking, and that is a failure in compliance with earlier 
regulation.
    I mean, it is not that we would at all disagree that it is 
a terrible problem, but it was not the regulator's choice to 
pick MTBE. That was done by the industry because it was a 
cheaper substance, and the leaking tanks is what got it into 
the water. I am painfully familiar from my days in private 
practice with the underground storage tank regulation. They are 
quite extensive and those things were supposed to have been 
pulled and replaced 15 years ago.
    Mr. Ose. Anybody else?
    Dr. Gray.
    Dr. Gray. I just wanted to ask if perhaps this notion of 
the Under Sectretary looking broadly across the media in the 
different environmental areas is, in fact, contained in the 
goal of the department as laid out in the legislation, which 
simply says that the department should be guided by the goal of 
improving overall environmental quality. There is an 
exhortation, there is an aspiration here to make this overall, 
to look broadly--and perhaps something a little more concrete 
would help there as a place to start--to make that something 
that can be used to measure or to check how that particular 
office is working.
    Mr. Ose. OK.
    Mr. Warren. If I could just add, I think it is a very 
serious issue, in fact, how you encourage that cross-media work 
and that integration. And, I think that the solution, for 
better or worse, is that it needs to be done from the top down; 
that really it has to be the responsibility of the secretary 
and the deputy secretary to take on those actions, which are 
necessary to make sure that it is done across the Agency, not 
only air, water and land, but science and enforcement and 
monitoring all together; and that they have the ability to do 
that, in fact, I believe through again such tools as the 
Government Performance Results Act, which forces them to do a 
strategic plan.
    And, if you look at the current strategic plan in terms of 
how it has done its goals, the goals are not simply done by 
traditional media, and within each goal, you will see different 
media working together. I am not endorsing their current 
strategic plan; what I am pointing to is the fact that does 
present a means for them, and that simply another layer of 
bureaucracy, as opposed to having the deputy secretary and 
secretary being charged with that directly, I don't think 
necessarily ensures the result.
    Mr. Ose. OK. In developing this legislation, we received a 
lot of input. Some of the groups have put forward the thought 
that the regulations promulgated by EPA should be subjected to 
a cost-benefit analysis.
    My question would be, should such a requirement be included 
as part of an EPA elevation bill, should EPA be required to 
prioritize not only its proposed activities, but also the 
regulations it wishes to promulgate? I think that is part and 
parcel of the question, in particular that Professor Steinzor 
and Mr. Warren hinted at, as to whether or not this provision 
should be included in this elevation bill. So we will deal with 
that accordingly.
    Mr. Warren, we are going to go to you first. Should EPA be 
required to do a cost-benefit analysis of all of its 
regulations? Should such a requirement be included in the EPA 
elevation bill? Should EPA be required to prioritize its 
activities and the regulations it might wish to promulgate, and 
should those activities be included in the elevation bill?
    Mr. Warren. When you say ``those activities,'' do you mean 
the first three activities or the prioritization exercise 
alone?
    Mr. Ose. Separate the two. There are actually two things. 
There is a cost-benefit analysis and then prioritization. 
Should the cost-benefit analysis be included in the elevation 
bill? Should the prioritization requirement be included in the 
elevation bill?
    Mr. Warren. OK. Well, our answer would be no and no. In 
respect to cost-benefit analysis, the Agency is already 
required under an Executive order to do a cost-benefit analysis 
for major rules. Therefore, it doesn't seem necessary to have 
an additional requirement in that respect. Cost-benefit can, if 
done right, provide useful information to policymakers. But it 
should not become the overriding statutory decisionmaking 
criteria. Those should remain as they are in the statutes where 
they exist now.
    In respect to the prioritizing exercise, I believe that it 
is desirable for the Agency to have a good process by which it 
sets priorities and by which Congress then can review them and 
pass judgment on them. But I think that you would just be 
opening a tremendous Pandora's box to ever get people to agree 
on what the right priority-setting process or priorities would 
be. And, I think that it would really have the effect of 
dooming the legislation.
    Mr. Ose. Professor Steinzor.
    Ms. Steinzor. Our answer would be no and no as well. First 
of all, I would like to offer, we have done comprehensive 
analyses in several different forms of the type of cost-benefit 
analysis that is being done now by the agencies under pressure 
from the Office of Management and Budget. And, I would be 
delighted to provide that. I think that much of that 
methodology and underlying information illustrates that the 
kind of cost-benefit analysis we are doing now is unsound cost-
benefit analysis.
    Furthermore, there are statutes such as the Clean Air Act, 
as affirmed in a Supreme Court decision that was unanimous and 
authored by Justice Scalia relatively recently, that upheld the 
specific decision in the Clean Air Act not to allow costs to be 
considered in the formulating of health-based standards as an 
initial matter. And so, to enact something like that as part of 
Cabinet elevation, once again, would have the effect of 
repealing that statutory provision, and is only appropriate if 
you were engaged in a debate about whether it was desirable in 
that context.
    Mr. Ose. OK. Dr. Hayward.
    Dr. Hayward. I think I will pass on this one, too.
    Mr. Ose. Dr. Gray.
    Dr. Gray. I think in an ideal world the answer to your 
questions would be yes and yes. It would be very good to know 
what sorts of benefits we were getting for the resources that 
we are putting into complying with specific rules and 
regulations. That would be ideal. And, lots of folks have told 
us that is a useful part of the decisionmaking process. 
Priority setting would be great.
    Given the fact that the Executive order already requires 
benefit-cost analysis of major rules, and the fact that it is 
my understanding that this sort of provision has really held up 
previous elevation bills, it seems to me that would be 
something that would potentially lose a lot of the advantages 
that are there. I do think that a Bureau of Environmental 
Statistics will help us with priority setting. It is something 
that, inadvertent or in an indirect way, will be very valuable 
for priority setting. Benefit-cost analysis is being done in 
the Agency. I think more of it will be done. Making it an 
explicit requirement of this bill I am afraid will just stop 
the bill.
    Mr. Ose. Dr. Portney.
    Dr. Portney. I am in the same place that George Gray is. I 
think that it is inconceivable to me that you wouldn't want a 
regulatory agency to ask the question, What is the good that 
this regulation will do and how does that compare to the costs 
that it will impose on the economy? So I think that agencies 
should have to do benefit-cost analysis.
    But I also agree with Wes and several of the other 
panelists who pointed out that they are required to do so under 
a Presidential Executive order and under the Unfunded Mandates 
law of several years ago. I don't see any reason to risk all 
the advantages that I think this bill offers in terms of 
Cabinet department, Bureau of Environmental Statistics by 
putting that in there. And, I feel the same way on 
prioritization. Yes, it should. I don't think this bill ought 
to become the vehicle to require the EPA to do that.
    Mr. Ose. All right.
    My last question here has to do with the public's access to 
data at EPA. What changes, if any, should the Department make 
in its implementation of the Data Quality Act? And, should an 
EPA elevation bill contain a provision to ensure data quality 
and the public's access to that data? And, if so, what language 
do you recommend? I am going to start with Dr. Portney on this.
    Dr. Portney. I am going to have to pass on this one. I know 
that this Data Quality Act has become a very controversial 
issue. What I don't know is whether or not this government, or 
any government, would use it to frustrate the ability of a 
regulatory agency to issue regulations, or whether it is a 
constructive step in the direction of making sure that the 
public can see the data base upon which regulations are based. 
So I'm afraid I don't have a very good response to you there.
    Mr. Ose. Professor Steinzor.
    Ms. Steinzor. Well, Mr. Chairman, CPR has been in the 
forefront of questioning how we should properly interpret the 
Data Quality Act. No one can be against quality data. But it 
seems to us that the act has been stretched way out of shape by 
the Center for Regulatory Effectiveness, whose founder claims 
to have authored the act.
    Yesterday we became aware that a letter had been circulated 
here that accused us of violating the Data Quality Act when we 
expressed an opinion about how it was being used by the Center 
for Regulatory Effectiveness, which leaves me with the 
impression that the Data Quality Act is bigger than the first 
amendment in Mr. Tozzi's mind. And, I find that kind of 
troubling. I think we should be able to have a robust debate, 
as we did with all the panelists who were sitting here. It has 
been a very stimulating discussion. And, having fears that we 
have violated the Data Quality Act as interpreted by Mr. Tozzi, 
and therefore our views should be discounted.
    So I would urge you to be very, very cautious about feeding 
this idea that anyone who disagrees with you is violating the 
Data Quality Act. I would just urge you to focus on your other 
very worthwhile goals.
    Mr. Ose. Dr. Hayward.
    Dr. Hayward. I am pretty much where Paul is. I haven't 
spent a lot of time yet figuring out how the Data Quality Act 
was going to unfold. I was going to wait for some more time to 
pass and things to settle out a bit. In general, I find that 
EPA, at least on their Web site, breaks down a lot of their 
data, like their air quality data especially, superbly. It is 
voluminous and extremely useful.
    You do occasionally get into these debates about the 
confidentiality of raw data that goes into some of their 
epidemiological research. This has come up in the context of 
the new ozone and particulate standards. And, I am not sure 
what the answer is there, because that opens up a can of worms 
on all kinds of legitimate concerns about privacy of the people 
being surveyed and so forth. And, I don't know what the 
solution to that is. But I think it is the kind of thing that a 
Bureau of Environmental Statistics would have to wrestle with 
very seriously and figure out some kind of way to make both 
sides happy.
    Mr. Ose. Mr. Warren.
    Mr. Warren. Well, I believe that you can support quality 
data and yet not support the Data Quality Act. I believe that 
piece of legislation still has the potential in fact to be a 
source of great mischief. And by that, I mean that self-
interested opponents of environmental protection may see the 
act as an opportunity to just constantly challenge any piece of 
information that the Agency has at its disposal to prevent it 
from being used in a decision or to prevent it from being 
disseminated to the public. And, I think that would be a 
perversion of the intention to ensure quality data.
    Having said that, as you know, this was adopted as an 
appropriations rider. The administration has carried the 
interpretation far beyond the literal reading of it. Our 
organization objected to it both in terms of the content also 
the process. This is the type of proposal that should have gone 
through the authorizing committees. We should have had a free 
and open public debate. Congress should have had a chance to 
consider all of the implications before enacting it. And now we 
are struggling to live with the consequences.
    I have to say that I think your legislation has been much 
more careful about avoiding the interjection of those kinds of 
pernicious concepts into place that might actually undermine 
the objective of quality data.
    Mr. Ose. Dr. Gray.
    Dr. Gray. Nothing.
    Mr. Ose. All right. Well, I have no further questions.
    I do want to offer a couple comments. I think everybody's 
interested in improving the quality of our environment. That is 
pretty basic. It is not even partisan. One thing I do want to 
examine in future hearings is one of you, I think Professor 
Steinzor or Mr. Warren, I think one of your testimonies talked 
about the difference in how an adult human is affected by 
environmental influences, as opposed to a child.
    Mr. Warren. Yes.
    Mr. Ose. And, I think I want to examine that a little bit 
more, because I am curious about what role, if any, this 
legislation might have in facilitating a far more comprehensive 
look at that.
    I do want to thank you all for coming today. This has been 
highly educational for me. This is not an easy issue, because 
we have all sorts of different influences pulling on us in 
different directions. We are going to try and work our way 
through it. Our objective remains to get an Agency that can 
prevent situations such as like MTBE, regardless of the source, 
from leaky tanks or otherwise, from recurring time after time 
after time. We want a cleaner environment for ourselves, our 
children, and our grandchildren. It is an appropriate time for 
us to look at this.
    I appreciate you all taking the time to come down and 
testify and help us in our efforts. This hearing is adjourned.
    [Whereupon, at 12:12 p.m., the subcommittee was adjourned.]
    [Additional information submitted for the hearing record 
follows:]

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  ELEVATION OF THE EPA TO DEPARTMENT LEVEL STATUS: FEDERAL AND STATE 
                                 VIEWS

                              ----------                              


                       TUESDAY, SEPTEMBER 9, 2003

                  House of Representatives,
  Subcommittee on Energy Policy, Natural Resources 
                            and Regulatory Affairs,
                            Committee on Government Reform,
                                                    Washington, DC.
    The subcommittee met, pursuant to notice, at 2 p.m., in 
room 2154, Rayburn House Office Building, Hon. Doug Ose 
(chairman of the subcommittee) presiding.
    Present: Representatives Ose, Shays, Cannon, Tierney, 
Kucinich, and Waxman [ex officio].
    Staff present: Dan Skopec, staff director; Barbara Kahlow, 
deputy staff director; Danielle Hallcom, professional staff 
member; Melanie Tory, junior professional staff member; Anthony 
Grossi, legislative clerk; Yier Shi, press secretary; Phil 
Barnett, minority chief counsel; Alexandra Teitz and Krista 
Boyd, minority counsels; and Jean Gosa, minority assistant 
clerk.
    Mr. Ose. Good afternoon and welcome, everybody, to today's 
hearing on the Subcommittee on Energy Policy, Natural Resources 
and Regulatory Affairs.
    Today the subcommittee will hold its fifth hearing on the 
topic of elevating the Environmental Protection Agency to 
Cabinet-level status. President Nixon created EPA in 1970 and 
since that time, Congress has passed several landmark 
environmental laws such as the Clean Water Act, Clean Air Act, 
Safe Drinking Water Act. Each time, EPA's jurisdiction has 
increased significantly but its structure remains the same as 
originally envisioned. As Congress considers elevating EPA to 
the Cabinet, we should also consider whether an organizational 
structure created in 1970 is best suited for a new department 
charged with one of the government's most important roles, 
protecting the health of our Nation's citizens and environment.
    During the last Congress, this subcommittee held three 
hearings addressing EPA elevation bills introduced by former 
Congressman Steve Horn and Congressman Sherwood Boehlert. 
Experts and public officials testified to the merits of 
elevation and current organizational problems at EPA that 
hinder effective environmental protection. On June 6, 2003, 
this subcommittee heard testimony from think tank and academic 
experts regarding the merits of the two EPA elevation bills 
before the current Congress. The first bill, H.R. 37, was 
introduced by our colleague, Congressman Sherwood Boehlert, and 
is identical to 2438, as introduced in the 107th Congress. H.R. 
37 elevates EPA to department-level status but makes no reforms 
in its structure.
    I believe that EPA's structure as it currently exists lacks 
adequate oversight and coordination within offices to ensure 
that science, policy and implementation are integrated 
throughout EPA. I also believe that science at EPA must be 
improved. Based on the expert testimony from our previous 
hearings in the last Congress, I introduced H.R. 2138 on May 
15. Currently, each EPA regional office, program office and 
division reports directly to the EPA's Administrator and Deputy 
Administrator. And the chart on the left over here is the 
diagram that reflects that.
    My bill would make important organizational and 
institutional changes to EPA in order to eliminate the 
stovepipe structure reflected in that chart. It reorganizes EPA 
into three Under Secretaries: first, Policy, Planning and 
Innovation; the second, Science and Information; and the third, 
Compliance, Implementation and Enforcement. The Under Secretary 
for Policy Planning and Innovation would have authority over 
all program offices, regulations and policy development. The 
Under Secretary for Implementation, Compliance, and Enforcement 
would supervise the regional offices, assist States in 
coordinating with program offices, and head EPA's enforcement 
effort and that is reflected on that second chart on the right.
    My bill responds to the overwhelming feedback about the 
lack of sound science at EPA by creating an Under Secretary for 
Science and Information. This section mirrors legislative 
language from H.R. 64, the Strengthening Science at the EPA 
Act, introduced by Congressman Vernon Ehlers, which passed the 
House in the 107th Congress. Witnesses at June's hearing 
supported this provision, stating that EPA's science should be 
consolidated into one centralized division. At a minimum, this 
organization will advance environmental protection by 
conducting peer-reviewed scientific studies of the highest 
caliber and provide a level of separation between regulators 
and scientists.
    Finally, at June's hearing, witnesses testified that EPA 
needs an independent statistical agency to report on meaningful 
environmental and human health performance indicators. My bill 
creates an independent Bureau of Environmental Statistics 
modeled after the successful Energy Information Administration 
to collect, analyze, and report on environmental and human 
health conditions. Under the leadership of former administrator 
Whitman, EPA published a draft State of the Environment Report 
in an effort to move toward outcome measurements. While EPA's 
report is a step in the right direction, only a statutorily 
required, peer reviewed, and independent Bureau of 
Environmental Statistics will move EPA toward the goal of 
implementing meaningful outcome measurements.
    It is important to note my intention that EPA elevation 
will not alter any of the Agency's jurisdiction nor will it 
address any substantive or nonsubstantive environmental laws 
that guide EPA's action. This is a structural discussion only. 
Instead, my bill will elevate the Agency to a Department and 
provide the Department of Environmental Protection with the 
structure and tools to most effectively address the 
environmental challenges of the 21st century. I am, of course, 
open to improvements to this bill to meet this goal, and I hope 
that Congress does not pass up this opportunity to make 
important reforms.
    I look forward to the testimony of our distinguished 
witnesses here today. They include Marianne Horinko, who is the 
Acting Administrator of the EPA; Mr. James Connaughton, 
chairman of the Council on Environmental Quality. Our second 
panel has State Representative Warren Chisum from the Texas 
House of Representatives; Mr. Howard Roitman, director of 
environmental programs from Colorado; Dr. Ron Hammerschmidt, 
director, Division of Environment, Kansas Department of Health 
and Environment; E. Donald Elliott, former EPA General Counsel 
and partner at the law firm of Wilkie, Farr & Gallagher; Dr. 
Alan Moghissi is president of the Institute for Regulatory 
Science; and Mr. Gary Guzy, former EPA General Counsel and 
partner at the law firm of Foley Hoag, LLP.
    [The prepared statement of Hon. Doug Ose follows:]

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    Mr. Ose. I would like now to recognize my good friend and 
colleague, Mr. Tierney, for the purpose of an opening 
statement.
    Mr. Tierney. Thank you, Mr. Chairman, and just to share 
with the two witnesses here, the big words on that is ``small 
opening.'' I am glad we didn't have to sit through the big 
opening.
    Thank you, Mr. Chairman, for conducting this hearing on an 
issue of great importance, I think, elevating the EPA to 
Cabinet-level status. I strongly support making it a permanent 
member of the President's Cabinet, but I couch that--as I say, 
we should do it in a manner that does not diminish the 
integrity of the Agency or its purpose. EPA's purpose is to 
protect the environment we live in, protect our land, our 
water, and our air. If Congress acts to change the status of 
the Agency, it should be acting to elevate the importance of 
environmental protection as a key policy of the U.S. 
Government.
    Making EPA a Cabinet-level department is an important goal 
that should not be jeopardized through controversial 
provisions. We should not use an EPA elevation bill as a 
vehicle to weaken our enforcement laws while--environmental 
laws or their enforcement. I am concerned, however, that the 
chairman's bill contains some provisions that may warrant 
further discussion, certainly that some may see as 
controversial, and I mentioned that to the chairman before.
    In considering any change to the EPA, it is important to 
look at the work that EPA is doing under the current 
administration. Several reports have surfaced this summer 
regarding EPA's lack of enforcement of our clean air and water 
laws. And just in the last few weeks EPA has taken a number of 
very troubling actions. For example, EPA finalized a rule that 
weakens the Clean Air Act by allowing thousands of old power 
plants to make upgrades to their power plants without 
installing pollution controls. These power plants and factories 
will be allowed to continue polluting the air without being 
held responsible for the damage they are causing to our health 
and to our environment. It was reported last week that EPA is 
relaxing restrictions on selling land contaminated with PCBs, 
the toxin that is known to have serious health consequences in 
children. Additionally, the EPA Inspector General recently 
issued a report stating that EPA was pressured by the White 
House to be less than candid about New York's air quality after 
the attacks on the World Trade Center. That caused 
understandable concerns to those brave first responders and 
emergency workers who risked their health to participate in 
weeks of grueling rescue and recovery efforts at Ground Zero.
    It is not enough to talk about protecting our health and 
our environment. The actions of EPA and Congress must reflect a 
true commitment to the environment. Elevating the EPA should 
not be a vehicle for measures that would serve to weaken the 
laws that protect our health and environment nor that would 
redirect time and resources away from EPA's core missions.
    I'm also a little bit concerned that the administration 
appears to have reversed its position on the EPA elevation bill 
and I look forward to hearing the administration witnesses 
explain this shift in position. Elevation of EPA should not be 
a divisive issue, but rather an issue that sends a clear and 
strong message that the protection of our national and global 
environment and our health is of the utmost importance. I look 
forward to hearing from you and our witnesses today.
    Thank you, Mr. Chairman, for this hearing.
    Mr. Ose. I thank the gentleman.
    [The prepared statement of Hon. John F. Tierney follows:]

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    Mr. Ose. As many of you know that have appeared before this 
committee, we routinely swear in our witnesses. I want to make 
sure I welcome them. We have two panels today. Our first panel, 
we are joined by representatives of the administration. We have 
Chairman James Connaughton from the Council on Environmental 
Quality. And we have the Acting Administrator for the 
Environmental Protection Agency, Ms. Marianne Horinko. And I 
welcome you both. And in line with our tradition here, if you 
would please rise.
    [Witnesses sworn.]
    Mr. Ose. Let the record show that the witnesses answered in 
the affirmative. And with that, we are pleased to welcome back 
to our forum Mr. James Connaughton, chairman of the Council on 
Environmental Quality. Mr. Connaughton, you are recognized for 
5 minutes.

   STATEMENTS OF JAMES L. CONNAUGHTON, CHAIRMAN, COUNCIL ON 
    ENVIRONMENTAL QUALITY; AND MARIANNE L. HORINKO, ACTING 
         ADMINISTRATOR, ENVIRONMENTAL PROTECTION AGENCY

    Mr. Connaughton. Thank you, Mr. Chairman, Mr. Tierney, and 
other members of the subcommittee. I am pleased to be here 
again before the subcommittee to discuss the Bush 
administration's support for elevating the U.S. Environmental 
Protection Agency to a Cabinet department. I am very pleased to 
share this panel with my good friend and colleague, Acting EPA 
Administrator Marianne Horinko.
    In its short history, the U.S. Environmental Protection 
Agency has a long record of accomplishments. It is because of 
these accomplishments environmental quality in the United 
States has vastly improved.
    Improved air quality is one of our Nation's greatest 
environmental successes. Air pollutants have been reduced by 
almost one-third since 1970, even as the Nation's gross 
domestic product has increased 160 percent, energy consumption 
increased 45 percent, and population increased 38 percent.
    The Nation's water is cleaner. Today 192 million people are 
served by modern sewage treatment facilities. In the last 
decade alone, we provided safe drinking water to another 54 
million Americans.
    And the Nation's land is better protected. We are more able 
to provide benefit and refuge to our communities and support 
thriving ecosystems.
    In 2002 and again this year, Representative Sherwood 
Boehlert of New York offered legislation to elevate EPA to a 
Cabinet department. I would like to take a minute to 
acknowledge and again thank Representative Boehlert for his 
continued leadership and ongoing support for elevating EPA to a 
Cabinet department. At the same time, I want to thank you, 
Representative Ose, Mr. Chairman, for your leadership and your 
desire to advance this important priority of the Bush 
administration and to do so in a way that meets the fundamental 
goal, the structural elements necessary to raise an agency up 
to a Cabinet department.
    When I testified before this committee on the subject last 
summer, I emphasized that the Bush administration would work 
closely with the committee to advance EPA Cabinet legislation 
in order to make official what is already a reality in the Bush 
administration. Let me again highlight why EPA should be 
elevated to a Cabinet department and why we should do it now.
    EPA carries out the work of a Cabinet department. EPA 
started out by overseeing four major environmental statutes. 
Today EPA implements 15 major statutes and numerous others, as 
well as a full complement of grant programs, voluntary 
initiatives, technical assistance and educational programs, as 
well as citizen outreach throughout the Nation.
    EPA also advances the mission of a Cabinet department. As 
we move forward in tackling our environmental goals for the 
21st century, EPA is reaching out to develop new approaches 
that promote stewardship that spur innovation, that instill 
sound science in its decisions, that advance federalism through 
greater involvement of State and local government and, as 
important, ensure compliance.
    EPA plays a vital role in homeland security. EPA has the 
lead role in environmental monitoring, decontamination, and 
long-term site cleanup. Their expertise in offsite monitoring, 
contamination surveys, working with health officials working to 
establish safe cleanup levels, conducting protective cleanup 
actions and communicating technical information to its citizens 
is essential for Federal response to an act of terrorism that 
involves the release of biological, chemical, or radioactive 
material. EPA works with Federal partners in every phase, from 
the initial crisis to the final cleanup.
    EPA also produces initiatives of national significance that 
one expects of a Cabinet department. EPA designed and is 
advancing the President's Clear Skies Initiative that will cut 
the Nation's power plant emissions of sulfur dioxide, nitrogen 
oxide, and mercury by 70 percent. This initiative, along with 
EPA's new comprehensive regulations and programs to cut 
emissions from diesel engines, will enable hundreds of counties 
across the country to meet the newest and most stringent 
national air quality standards for ozone particulate matter 
that the Bush administration is implementing.
    EPA's influence and accomplishments now extend beyond our 
borders. Many nations turn to EPA for technical expertise and 
guidance in safeguarding the health of their own citizens and 
the sustainable use and enjoyment of their natural resources. 
For these reasons, the Bush administration strongly supports 
elevating EPA to a Cabinet department. And we support efforts 
to accomplish this objective in a straightforward manner that 
focuses on the organizational structure of a new Cabinet 
department.
    Acting Administrator Horinko will outline some comments and 
recommendations for changes to certain elements of the 
legislation, but I wish to emphasize that overall, we believe 
it is important to build an organization better equipped to 
meet the increasingly complex environmental challenges facing 
the Nation and the world and an organization that will 
ultimately better protect the public health and environment. We 
look forward to continuing dialog with the committee on how 
best to accomplish this mutual objective.
    Thank you for the opportunity to testify today and I look 
forward to answering any questions you may have.
    Mr. Ose. The Chair thanks the chairman who did it in 4 
minutes and 58 seconds. Very good.
    [The prepared statement of Mr. Connaughton follows:]

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    Mr. Ose. The Chair is pleased to recognize the Acting 
Administrator for the Environmental Protection Agency who has 
joined us I believe for the first time today. Ms. Horinko, you 
are welcome here.
    Ms. Horinko. Mr. Chairman, thank you. Good afternoon. I am 
very pleased to appear before the subcommittee as Acting 
Administrator on so important an issue to the Agency, the 
elevation of EPA to a Cabinet department. And I am also pleased 
to have the opportunity to appear here today with Jim. I plan 
to give a brief oral statement and submit my longer testimony 
for the record.
    Since its creation by President Richard Nixon more than 30 
years ago, EPA has worked diligently to fulfill its mission to 
protect human health and safeguard the natural environment. To 
that end, EPA has changed and adapted to address the challenges 
associated with new environmental laws as they were passed by 
Congress. EPA's role is defined as well by increased public 
awareness and the expectation that our health and environment 
will be protected. That strategy has led to the need for an 
emphasis on the use of sound science as well as dependence on 
the public trust.
    Today EPA faces more challenges than ever before to protect 
human health and the environment, and as a means to help the 
Agency face these challenges, the time has come to establish 
EPA as a permanent member of the President's Cabinet. Elevating 
EPA to Cabinet status is not a new idea. There are more than a 
dozen bills introduced in Congress to elevate EPA to Cabinet 
status since 1988. Former President Bush was the first 
President to support Cabinet status for EPA, a decision then 
followed by President Clinton and current President George W. 
Bush.
    I want to thank Chairman Ose and other Members of Congress, 
including Chairman Sherwood Boehlert, for introducing 
legislation to elevate EPA to Cabinet status and for their 
continued support of the Agency.
    I would like to touch briefly on some of the issues 
addressed by H.R. 2138, the Department of Environmental 
Protection Act. The principal goal of the bill to elevate EPA 
to Cabinet status and promote greater performance and 
efficiency at the Agency is certainly a goal that we share. I 
am concerned, however, that the consensus developing for 
elevation of EPA could be fractured by contentious debate over 
the details of a statutory EPA restructuring plan.
    The bill's goal to improve the use and application of 
science at EPA is a sound one with the creation of an Under 
Secretary of Science and the consolidation of science 
activities under one office, changes that merit further 
discussion. We do believe, however, that the information 
management function should be separated from the science 
organizational structure, as mandated by the Clinger-Cohen Act. 
The creation of a Bureau of Environmental Statistics [BES] 
could promote the importance of accurate, thorough, 
environmental monitoring and reporting and could provide the 
Agency with better data. However, an EPA BES should be 
consistent with the structure and authority of other Federal 
statistical bureaus.
    Also, as to the relationship between EPA and its regions, I 
agree that it is important to have close coordination and 
communication throughout the Agency. While the regional offices 
need to implement national goals and policies, they also need 
sufficient flexibility to implement their goals to reflect 
particular regional and local conditions. I would urge Congress 
to allow the executive branch sufficient flexibility to allow 
the new Department to manage the enforcement and regional 
office functions as effectively and efficiently as possible.
    Finally, we support Cabinet elevation legislation that is 
free of provisions that would make significant policy changes 
to the Agency and its programs. We look forward to working with 
you and other Members of Congress as legislative deliberations 
over the elevation of EPA to Cabinet status continue in the 
108th Congress.
    That concludes my oral statement, Mr. Chairman, and I would 
be pleased to answer any questions that you or the committee 
members may have.
    Mr. Ose. I thank the gentlelady and appreciate her brevity.
    [The prepared statement of Ms. Horinko follows:]

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    Mr. Ose. I want to make sure I understand something before 
we start. It is my understanding that President George Herbert 
Walker Bush, President Clinton, and President George W. Bush 
all consider from a practical standpoint or operating 
standpoint that EPA is part of their Cabinet already; is that 
accurate?
    Ms. Horinko. That is indeed accurate.
    Mr. Ose. So you are attending the Cabinet meetings as 
Acting Administrator anyway.
    Ms. Horinko. And in fact have the privilege of sitting at 
the table with the other Cabinet members.
    Mr. Ose. At the table. In reality you are there now.
    Ms. Horinko. [Nods affirmatively.]
    Mr. Ose. The second question I have--and I appreciate both 
of your responses--I have been very careful in drafting this 
legislation to keep any change from a policy standpoint out. 
This is strictly a management structure kind of thing. Have I 
succeeded in that, Mr. Connaughton?
    Mr. Connaughton. You have succeeded on focusing on 
structural elements. We have comments and questions related to 
those elements.
    Mr. Ose. But on the policy side.
    Mr. Connaughton. We were pleased to see in your bill this 
year, Mr. Chairman, a strong effort to stay focused on the 
structure elements, which, as I indicated in my oral comments, 
when you elevate from an agency to a department, you do bring 
in the opportunity to make sure that you got some of the key 
pieces structurally in place so it can function as a department 
on par with the other agencies. And I would note that most 
other agencies do have a policy apparatus. The Department of 
Transportation is one example I would give, Department of the 
Interior is another, and your legislation has reflected that. 
And different agencies, depending on their mission, do put a 
strong prominence on the science function. So those are the 
elements that we think have particularly well captured 
equivalency with other Cabinet departments.
    Mr. Ose. But you don't see anything in terms of any 
amendments to the Clean Water Act, Clean Air Act, within the 
legislation as drafted? Ms. Horinko, do you agree with that?
    Ms. Horinko. I agree.
    Mr. Ose. I want to make sure we get that on the record. 
Section 7 of my bill outlines the duties of the Department's 
Presidentially appointed and Senate-confirmed officers. One of 
the more criticized functions of EPA is the quality of its 
science. Both sides of the political spectrum claim, and I have 
heard all the claims, that EPA does not use the best science in 
support of its regulations. There is a section of my bill, 
section 7(c), that establishes an Under Secretary for Science 
and Information for the purpose of co-locating scientific 
activities at EPA and to remove the regulatory science efforts 
from the program offices.
    Now, Mr. Connaughton, in your testimony you state that the 
administration supports efforts to improve the organizational 
structure of a new Cabinet department. Is it the 
administration's position that Congress should institute 
organizational reforms concurrent with Cabinet elevation?
    Mr. Connaughton. Structural reforms are necessary to 
elevate something to a Cabinet. So the answer to that is yes.
    Mr. Ose. Because that is the template that is used in every 
other Cabinet department?
    Mr. Connaughton. Correct.
    Mr. Ose. Now in making those organizational changes to, in 
effect, evolve an agency to a department, would the 
administration generally support centralizing and 
professionalizing the science under EPA under a strong leader 
such as an Under Secretary for Science and Information?
    Mr. Connaughton. Yes, we would.
    Mr. Ose. Ms. Horinko, I do want to thank you for suggesting 
in your written testimony that the Department include a CIO. I 
missed that, so I appreciate your suggestion. Other than that 
modification, do you support an Under Secretary for Science 
within the new Department?
    Ms. Horinko. Yes, I do.
    Mr. Ose. Do you think that centralizing the science at EPA 
can foster cross-media scientific analysis?
    Ms. Horinko. Yes. I think it will improve our coordination.
    Mr. Ose. Section 7(c) of my bill removes scientific 
activities from the program offices in order to minimize the 
disparate decisions as it relates to scientific studies and 
conclusions. Do you agree that scientific studies and 
conclusions should be independent from policy?
    Ms. Horinko. Yes, I do.
    Mr. Ose. I want to dwell a little bit on the Bureau of 
Environmental Statistics because I happen to think this is 
probably one of the more important factors of the bill. Section 
8 of my bill establishes such a bureau, which is similar to the 
highly respected Bureau of Labor Statistics, the BLS, in the 
Labor Department, and the Energy Information Administration, 
EIA in the Energy Department. And I will say that having just 
weathered and continuing to, if you will, enjoy California 
energy markets, I have a great familiarity with the EIA.
    Mr. Connaughton, many other Federal agencies and 
departments have valuable independent statistical agencies. 
Does the administration generally support the concept of the 
Bureau of Environmental Statistics within a Department of 
Environmental Protection?
    Mr. Connaughton. We do generally. We have some specific 
comments that relate to that in terms of how that is executed 
to bring it in line with some of the other statistical 
agencies. And then I would want to underscore the fact that 
numerous other departments, in addition to the several that 
have statistical agencies, also have statistical functions 
within them that we rely on across the government for 
environmental information. So there are elements of your bill 
that ensure a close coordination among those different fact-
gathering bodies that is of particular interest to talk through 
further.
    My office and the White House relies on the statistical 
work of all of those agencies as we collectively use that 
information in our understanding of policy decisions. So the 
short answer is yes, and then we have some specific issues that 
we are happy to work with you on.
    My time has expired. Mr. Tierney.
    Mr. Tierney. Thank you. I am happy to proceed if you are 
flowing and want to go on that.
    The chairman's bill, as I look at it, would significantly 
reorganize the proposed department with the purported aim of 
increasing communication across the EPA. And obviously, it 
would seem to me it would take time and resources currently 
needed for the EPA's core mission on that. Do you see any 
problems with the organizational changes proposed in the 
chairman's bill? And will the addition of three new Under 
Sectretaries either solve those problems of information sharing 
or the stovepiping that has existed and how?
    Ms. Horinko. I think that on the whole, that having the new 
Under Sectretaries will improve coordination and help us to 
have more program integration. We have some minor suggestions 
in terms of making the bill a little bit less prescriptive, 
giving us a little more flexibility to manage inside those 
three boxes of the Under Secretaries. But on the whole, I think 
the creation of these Under Secretaries will improve cross-
program coordination, break down the stovepipes and give us a 
little more program integration, all things that we do need at 
EPA.
    Mr. Tierney. I would be interested in you sharing with the 
rest of the committee what your recommendations are, because as 
I see the bill now, I have some of those questions myself. I 
think the intention is there, but I would like to see how that 
works out. Do you think in its reorganization, if you don't 
provide additional resources at the same time, is it not going 
to make it harder for the EPA to issue or implement enforced 
environmental protections?
    Ms. Horinko. Simply reorganizing the Agency into a 
department I don't believe would be a huge resource issue. We 
may want to talk to you about creation of the new Bureau of 
Environmental Statistics and it is simply too early to say 
whether that will require some additional resources. We will 
need to proceed very slowly in a step-wise fashion. You don't 
build something like that overnight. Perhaps benchmark what 
other agencies have done as they have created their statistical 
bureaus and also work very closely with our appropriators to 
make sure that we do this in a measured way.
    Mr. Connaughton. I would also note that the bill actually, 
thankfully from our perspective, does not designate the 
Assistant Secretaryships and the other components. It is our 
expectation that all of that stays in place at EPA. We have the 
Office of Water, Office of Air. As we move forward, the 
legislation provides flexibility in the future, but I think the 
resource issue is important. We think that the structural 
changes proposed are modest, even as we are able to keep intact 
the essential programs and the essential operating entities 
that you have referred to.
    Mr. Tierney. I recall that when Governor Whitman was 
testifying here, she indicated that a budget increase would 
actually help the EPA address the problem of viewing things 
across the various media such as air pollution and water 
quality. So I am not real clear how this bill would address 
this problem and I'm not clear why it can't be addressed 
outside of a reorganization on that issue.
    Mr. Connaughton. That is where the policy function becomes 
so important. Typically the policy offices in Cabinet 
departments are not that large. They do require some infusion 
of resources, but they are not that large. But by having a 
high-level political appointee overseeing the work of the 
different departments, it allows for that cross-media 
functionality to occur and it allows for somebody who is not 
the Administrator, who has to function, you know, across the 
entire scope and operation of the Agency, allows someone one or 
two steps down to be able to fulfill that function on a day-to-
day basis. Not only does it bring efficiency but it helps us 
identify the opportunities for, you know, the air program, for 
example, to provide real deliverables when it comes to 
protection of water.
    Mr. Tierney. Outside of this legislation, why can't we 
address the issue of working across various media, what we 
would do if we didn't have this legislation to improve that 
situation?
    Ms. Horinko. There are things we are doing now to try and 
improve cross-media coordination. And there are a large number 
of administrative things. We have cross-program task forces. We 
have the Innovations Action Council. We try to put together 
teams to break down the barriers, to break down the stovepipes. 
Those are cultural things that we can do and are doing at EPA. 
But perhaps it is time to start exploring some structural 
things as well. And the opportunity that is provided by Cabinet 
elevation provides an opportunity to have a full and fair 
public exchange such as this on what type of changes should be 
considered at the Agency.
    Mr. Connaughton. The change proposed is very modest and yet 
would be meaningful.
    Mr. Tierney. I will stop here.
    Mr. Ose. I believe the gentleman from Ohio was in first. 
Gentleman from Ohio for 5 minutes.
    Mr. Kucinich. I thank the Chair. To Ms. Horinko, I have 
long supported a Cabinet-level status for the EPA and I hope 
that Congress can work to pass a clean bill to accomplish this 
goal. I am very concerned that the EPA is failing, however, in 
its current responsibilities. Congress expects agencies to 
follow the law that it passes, not change it. Yet with the 
signing of the recent new source review rule, EPA gutted a 
critical portion of the Clean Air Act in a definition of 
modification to stationary sources. The new rule provides an 
enormous exception for replacement activities costing less than 
20 percent of the process unit placement. This new trigger, 20 
percent is very high, seemingly arbitrary, and contrary to the 
current modification definition in the statute which states any 
physical change. So what I would like you to tell us is where 
in the statute is a 20 percent exemption to this broad 
definition.
    Ms. Horinko. Congressman, I am pleased to take on the NSR 
issue because it has been so miscast in public reports, in some 
public reports as a rule that would gut the Clean Air Act, and 
it does nothing of the sort. In fact, that rule doesn't affect 
any of the substantive safeguards of the Clean Air Act. And 
those safeguards have been incredibly successful and will 
continue to be incredibly successful in ratcheting down 
emissions of criteria pollutants. The acid rain program created 
by the 1990 amendments to the Clean Air Act, the 
No<INF><greek-e></INF> SIP Call that we are currently 
implementing, the ozone and PM regulations that Chairman 
Connaughton alluded to, those regulations will continue to 
inexorably ratchet down emissions on regulated facilities of 
all types. In fact lost in the noise of the NSR rule was the 
fact that we signed some 14 other maximum achievable control 
technology rules, further imposing emissions controls on these 
facilities.
    Mr. Kucinich. I think it is interesting the EPA has never 
been challenged for routine maintenance exemption and that is 
because the exemption was read narrowly by the EPA and the 
courts affirmed a narrow exemption. For example, on August 7, 
the Justice Department won a landmark victory against the Ohio 
Edison Co. And as a result of this single decision, thousands 
of tons of emissions will be reduced, which improves the health 
and environment of the people I represent in Ohio. However, 
under the NSR rule signed by you, all but one of the illegal 
actions committed by Ohio Edison would be permitted.
    Now, when the court decided this landmark case, it said if 
a rule exempted the pollution increasing projects proven in the 
case, which this new rule does, the rule would ``vitiate the 
very language,'' and they were talking about the Clean Air Act 
itself. The court confirms that a broad exemption would gut the 
statute. So I just wanted to point that out in response to what 
you said.
    And on a related issue I find it even more problematic that 
a comprehensive analysis was lacking in the NSR rules. And I 
wonder how many plants were analyzed in Ohio to determine if 
they would pollute more, and by how much.
    Ms. Horinko. Congressman, I would recommend your reading 
our regulatory impact analysis that we prepared in the final 
NSR rule. I read it myself. It is a lucid explanation of the 
justification for the rule, the impacts. It is a thorough 
analysis of the rule.
    Mr. Kucinich. Were zero plants analyzed or did you run a 
sophisticated modeling program?
    Ms. Horinko. I will followup with you as to the number of 
specific plants that were analyzed, where, and in what State 
and what location. But I'm confident, based on the best 
available information we've got, that any impact of this rule 
from an environmental standpoint will be very modest and it 
will be countervailed by the inexorable ratcheting down of 
emissions required by the substantive safeguards of the Clean 
Air Act. It will increase reliability and predictability and 
efficiency for operators so that they can plan around our 
Nation's energy supply. On balance, I think this is the right 
thing to do.
    Mr. Kucinich. I'm just going to suggest to you that if you 
didn't analyze any plants--let's assume that for the minute 
that Congress does expect agencies to act on sound science--and 
not only did the new source review changes originate with the 
industries regulated by the new source review, but a recent GAO 
report concluded that industry anecdotes which the EPA relied 
upon when creating the December rule that--you know, the EPA 
assumed what the industry said, that production would not 
increase, and the GAO found that this was not an accurate 
assumption because future levels of production could increase 
and emissions could increase and health risks could increase.
    I want to suggest to you that Congress expects agencies to 
act on the basis of science. But once again in this August 
rule, the EPA is relying on industry anecdotes for the second 
NSR rule. And I would like a specific answer, if you could 
communicate that to us in writing, to me or this committee, so 
I can tell my constituents in Ohio what's going to happen to 
air quality as a result of this rule.
    I thank the Chair. Would the gentlelady--she indicated a 
willingness to communicate this information.
    Ms. Horinko. Yes, I do.
    Mr. Ose. I understood her to say that she would communicate 
with you post-hearing in writing; is that accurate?
    Ms. Horinko. Yes, it is.
    Mr. Ose. Gentleman from Utah.
    Mr. Cannon. Thank you, Mr. Chairman. And I thank you for 
holding this hearing. You know that I am deeply concerned about 
this issue. I apologize to you and the panel for being late 
today and also the fact that I'm going to have to leave, and I 
hope I can get back for the next panel.
    Ms. Horinko I want you to--in the last two flights I have 
had out to Utah, I have been sitting next to my Governor, Mike 
Leavitt, who is prepping like crazy to relieve you of the 
spotlight. I'm not sure whether you like that or not, but he is 
working on it.
    Ms. Horinko. Please do cheer him on, Congressman.
    Mr. Cannon. This is a hard thing. I don't want to sound 
like that I am not a great supporter of my Governor, but by 
cheering him on, that would suggest that I support the 
departure. I think he will do a good job on the interior but I 
don't wish this job on any human being. So I told him that very 
directly. So he has support and a lot of help going in.
    But I'm deeply concerned about how we deal with science, 
especially at EPA. We had some awful problems historically, and 
I have read a little position paper on where you all are. I get 
the sense that you support the idea of an Under Secretary for 
Science. Could you address that, Mr. Connaughton? I am not sure 
if I am clear on your position.
    Mr. Connaughton. We do support that position and we 
actually look forward, as we analyze the legislation and look 
forward to that specific issue, the opportunity to bring under 
one Under Secretary the variety of science programs that exist 
in EPA at different locations. And so to bring some order to 
the overall scientific enterprise at the Agency would be 
helpful. To have someone at the level of Under Secretary co-
equal with other Under Secretaries also then will enhance the 
opportunity of the science function of the EPA to intersect 
with the policy operation of EPA and the administrative side of 
EPA in a much more coherent way, all without changing the 
underlying statutory mission, the underlying directives from 
Congress as to the various programs, but again create that 
opportunity for a much, much better coordination function with 
the right level of political appointee that we can attract into 
that kind of a position.
    Mr. Cannon. Thank you. Ms. Horinko.
    Ms. Horinko. I completely agree with what Jim said, and I 
want to note that while we certainly support any legislative 
efforts to strengthen science, including establishment of an 
Under Sectretary, I do want to acknowledge, however, that 
science can't be completely walled off from the program 
offices. We want to make sure there is good coordination and 
integration so that the best available science that is 
elucidated by this part of the Agency is then reflected in 
proper regulation, implementation, and decisions in the field.
    So we look forward to working this out with the 
subcommittee in our future discussions because the devil really 
is in the details here, but I think the concept is a good one.
    Mr. Cannon. If we did not do legislation to elevate EPA to 
Cabinet level, would it make sense still to reorganize it and 
create the new Under Secretary for Science and the related 
aspects of this legislation?
    Ms. Horinko. We could certainly think about it. It would be 
hard as a practical matter. As an administrative agency we 
technically don't have an Under Sectretary.
    Mr. Cannon. It would have to be a different title.
    Ms. Horinko. It would have to be some new title or 
structure or function, and I would have to sit down and talk to 
you about how we could do that. And I am not sure how we could 
do that other than as we currently have, which is an Assistant 
Administrator who reports directly to the Administrator, who 
Governor Whitman elevated by naming our Assistant Administrator 
for Research and Development as her Chief Science Advisor last 
year. We have taken some good administrative steps as well as 
some substantive steps to strengthen peer review, risk 
assessment, modeling policy and grants policy. I think we are 
doing many things administratively. But Cabinet elevation would 
give us more opportunity to think about restructuring.
    Mr. Cannon. Do you need legislation to add or change the 
titles or duties of an Assistant Administrator?
    Mr. Connaughton. The current statutory authority provides 
flexibility as to what the Assistant Administrators are called 
in their overall function, although those are pretty well 
established after time. What it does not allow for is some of 
the hierarchical structures that a Cabinet department would 
otherwise command in terms of how those offices relate to each 
other. And that is where the good work that EPA has done with 
advancing their science program with creating the post of a 
science advisor has helped. The science advisor is still an 
Assistant Secretary or the Assistant Administrator level.
    Mr. Cannon. Just before my time expires, let me point out 
that we have established a Science Caucus in Congress. We 
intend to work with you or oversee or relate closely with what 
you do there. In addition there, I sit on the Judiciary 
Committee where I am the chairman of the Commercial and 
Administrative Law Subcommittee, a very important component of 
our jurisdiction. And my focus is going to be on how we use 
science, and I expect to work with you on these issues in the 
future.
    Mr. Ose. Thank the gentleman.
    Mr. Connaughton, my earlier questions, you were generally 
supportive of the concept of a Bureau of Environmental 
Statistics. You had some input. Is your input embedded in your 
testimony?
    Mr. Connaughton. It is embedded in Ms. Horinko's testimony.
    Mr. Ose. So we will be able to pick that up.
    Ms. Horinko, as proposed in section 8 of my bill, do you 
support the creation of a Bureau of Environmental Statistics?
    Ms. Horinko. We do indeed support the creation of such a 
bureau with some clarifications--modifications to enhance the 
ability to share information among sister agencies, to help 
make that bureau essentially function the way bureaus such as 
the EIA and BLS function, to enhance confidentiality of 
information that is collected, and better define its mission 
consistent with these other agencies, and also just simply to 
streamline operations and reduce duplication. So some minor 
modifications, but we do indeed support the concept as outlined 
in your bill.
    Mr. Ose. So the privacy or the respect for the privacy of 
the information is an issue that you are trying to address with 
your testimony citing CIPSEA.
    Ms. Horinko. Yes.
    Mr. Ose. In talking about protecting individually and 
corporately identifiable data within CIPSEA, which provisions 
are you specifically referring to as being appropriate to embed 
in my legislation?
    Ms. Horinko. There are several specific things in CIPSEA 
that would enhance your legislation. First, we all think the 
definitions of statistical agencies and statistical activities 
would really help to clarify the mission of the Bureau of 
Environmental Statistics and bring it on a level par with the 
other statistical agencies in the Federal Government.
    Mr. Ose. Do these other statistical agencies in the Federal 
Government, do they have such definitions in their authorizing 
language?
    Ms. Horinko. I believe that they do.
    Mr. Ose. There is a template we can go to.
    Ms. Horinko. Absolutely. And that is what we are attempting 
to do is move to that template.
    Mr. Ose. Why is this additional confidentiality template 
language important?
    Ms. Horinko. It's important for two reasons. First of all, 
without the CIPSEA protections, we can't share information from 
other Federal agencies because they are prohibited from doing 
so unless we are also covered by CIPSEA. So this would really 
have to improve coordination, cooperation, prevent duplication 
of effort.
    The second thing is we are very concerned about protecting 
information that is submitted by survey recipients, businesses, 
individuals, information that should be kept private. The new 
BES should be able to aggregate data, roll it up and tell us 
what it means to the country. But we want to protect donor 
information and CIPSEA allows us to protect donor information.
    Mr. Ose. And apparently there is a reciprocity requirement 
in terms of other agencies or departments giving you 
information. If you don't have that same reciprocity, they are 
prohibited from giving it you. Is that statute or regulation?
    Ms. Horinko. I believe it is the CIPSEA law itself.
    Mr. Ose. You simply can't do it. You can, but you wouldn't 
look good in stripes.
    Ms. Horinko. That's right.
    Mr. Ose. When EPA published its draft State of the 
Environment report this past June, sections of the report were 
revised after the administration reviewed its content. Now the 
highly respected EIA, the Energy Information Administration, 
does not require the EIA's administrator to even seek approval 
from the Department of Energy or the White House in creating or 
publishing EIA's reports. And that is one of its great values 
to Congress.
    I suppose this question is for both of you, Mr. Connaughton 
and Ms. Horinko, do you support the same political independence 
for the BES?
    Mr. Connaughton. We do support the political independence 
of BES and they need to put that in context because it is the 
statistical function of the agency that is important. If the 
bureau's mission is so broadly defined as to get into policy 
analysis and other similar types of analytical exercises that 
crosses the line back into the policy and program domain, that 
is subject to statutory oversight and other kinds of internal 
policymaking oversight and that would create an issue.
    We don't encounter that with the Bureau of Labor Statistics 
nor do we encounter it with the Energy Information 
Administration, because they have narrowly defined statistical 
development missions.
    Mr. Ose. As crafted, with the caveat having to do with 
CIPSEA, would the BES as envisioned in this legislation enjoy 
that same sort of defined rule?
    Ms. Horinko. Yes, I think so, Mr. Chairman. Because 
adopting those definitions of statistical agencies and 
statistical activities defines an appropriate role for the BES 
on the same par as the BLS and EIA. So having that appropriate 
role well defined, as it is in CIPSEA, then provides the 
assurances that function, the statistical function, should 
enjoy that independence.
    Mr. Ose. Gentleman from Massachusetts.
    Mr. Tierney. Thank you. You touched on an area that has me 
very, very concerned. Arguably this is one of the most 
secretive administrations that we've ever experienced and their 
track record is just horrendous: the fact the GAO had to sue 
just to try to get information about their energy policy and 
how it was comprised and then was strong-armed into dismissing 
the suit; the fact the Congress's request for information has 
been largely ignored; the public and the public's request has 
been ignored.
    Getting into this area concerns me to no end that this is 
going to be a method from keeping information from the public 
that we are entitled to. In your testimony you address the need 
to keep certain information collected by the Bureau of 
Environmental Statistics confidential. Currently the EPA 
carries out entire programs such as the toxic release inventory 
that rely on providing public information in lieu of 
establishing control requirements. The Clean Air Act 
specifically prohibits the EPA and provides that it cannot 
withhold from the public any information that constitutes 
emissions data regardless of whether the entity considers that 
information to be confidential business information.
    So I am asking you, having looked at this language in the 
bill, does the administration believe that language would in 
fact limit the release of any information that the EPA 
otherwise has the authority to collect?
    Ms. Horinko. I don't believe this bill in any way limits 
the release of any information that we would otherwise collect. 
Our current policy now is to release information unless it is 
protected by FOIA or by specific confidentiality provisions 
such as confidential business information. This bill does not 
affect that in any way.
    Mr. Tierney. My concern is that if EPA should decide to 
consolidate certain information collected in the bureau, 
whether or not this language seems to prohibit it from 
releasing that information, even if it's data that was on plant 
emission of air pollution.
    Ms. Horinko. We certainly don't read the bill that way.
    Mr. Tierney. Would you take a look at section 8(h)(2) in 
the bill? Later write me a little note, in the context of what 
I just said to you; and when you read that, whether or not you 
might have the same concerns or the public might have the same 
concerns where you try to consolidate information from other 
sources by putting it in that context, you might then be able 
to avoid responsibility under other acts of actually disclosing 
information particularly with respect to air emissions.
    Ms. Horinko. We will take a careful look at that. That is 
certainly not our intent.
    Mr. Tierney. Would the administration support an addition 
of explicit language protecting the release of all the data 
that EPA would otherwise have the authority to collect and 
release?
    Ms. Horinko. We would certainly support something along the 
lines of this bill that does not affect any of the other 
information protections that are afforded to EPA or 
obligations.
    Mr. Tierney. Will you work with us for language on that?
    Ms. Horinko. I think our intent is the same.
    Mr. Tierney. Mr. Connaughton, when you testified before the 
subcommittee last Congress, you indicated that any mission 
statement of the EPA should be flexible enough to allow for the 
evolution of the Department's work and focus. The inclusion of 
a mission statement to protect the public from what this bill 
says is unreasonable environmental risk seems to me very narrow 
and seems to overemphasize setting priorities on risk 
assessment rather than on a broader view of the Nation's 
environmental health.
    Let me give you some examples of that. I mean right now, 
the purpose of the Clean Air Act is to protect and enhance the 
quality of the Nation's air resources. The mission of the Clean 
Water Act says the national goal that the discharge of 
pollutants into the navigable waters would be eliminated by 
1985. But I want to note that neither of them seems to qualify 
the degree to which the Agency is to move on that, and this 
idea of unreasonable risk seems to me to be vague, ambiguous, 
and focuses it more on trying to determine what the cost/
benefit is. And I want to know if you share that ambiguity, 
because I don't want this to become an idea of caused basis 
stuff as opposed to going out and aggressively taking 
affirmative action to clean up our environment, which those 
other acts seem to indicate that the EPA should do. Your 
general comments on that and how you feel about this law and 
whether or not it does limit that.
    Mr. Connaughton. First and foremost, EPA went through a 
mission exercise this past couple of years and simplified their 
mission statement to the straightforward one of the mission 
being to protect the human health and environment. Reasonable 
risk is inherent in any risk management activity whether it is 
at EPA or the FDA or even in the land management side of things 
at the Department of Interior. Anybody engaged in the risk 
assessment/risk management exercise, there is the question of 
reasonableness which has to do with scientific knowledge and 
information, has to do with cost and benefits, has to do with 
technological feasibility.
    So in terms of the use of the word ``unreasonable'' risk or 
to assure that risks are reasonable, that doesn't run counter 
to how professionals in this area deal with those issues. So I 
don't see anything insidious in the expression.
    But to the extent that the committees will work out 
language surrounding a very high-level mission statement, we 
are happy to work with you on that. But I don't see anything 
insidious in the expression per se.
    Mr. Tierney. May not be the expression. I have faith in my 
colleague here, but the administration in their environmental 
record I don't, and how they might use as something we see as 
something that is not that serious and move it in the other 
direction. That I have a great feel, given their track record, 
and I probably would be a lot happier if that language was just 
eliminated and we stick with the very simple goal that you said 
the Department has gone through and worked on, rather than to 
give them license to move down that path, because unfortunately 
with this group, words are for and often used as an escape 
hatch.
    Mr. Connaughton. I would strongly disagree with you given 
the track record. This EPA under the Bush administration has 
done and will do more to protect our air, bring air pollution 
down, do more to protect water and bring water pollution down 
and to pursue some very innovative programs, including the 
brownfields program which is of such great benefit to States 
like Massachusetts, to really clean up the land. So I would 
flat out disagree with you on that point.
    Mr. Tierney. But I have to part with the question and say 
when are they going to start? And what they have done so far in 
terms of their policy pronouncements are exactly opposite of 
what you are saying. And that's why I think they are generally 
perceived and understood to be probably the worst 
administration on the environmental protection we have seen.
    Mr. Ose. Gentleman from Utah.
    Mr. Cannon. Nothing.
    Mr. Ose. Gentleman from California.
    Mr. Waxman. Thank you, Mr. Chairman. The Bush 
administration is asking Congress to elevate EPA to a Cabinet-
level department, yet the administration's main environmental 
initiative has been a comprehensive campaign to weaken EPA and 
environmental protection. This administration has undermined 
EPA's authority and its credibility.
    For example, just a few weeks ago, you signed a rule 
gutting the new source review requirements. This rule allows 
increased emissions from power plants, one of the largest 
sources of air pollution in the United States today. You 
claimed, however, that this rule, ``will not affect 
emissions.'' That was reported by the Washington Post. Do you 
stand by that statement?
    Ms. Horinko. I do stand by that statement, Congressman. 
This rule is not a rule that is about the environment. This 
rule is about planning and process. The environmental 
safeguards of the Clean Air Act, the Acid Rain Program, all of 
our maximum standards, those safeguards remain in place and 
ratchet down from these facilities.
    Mr. Waxman. I don't think your argument is credible. The 
new source review requirements only apply if a source increases 
emissions, yet polluters need this exemption. That's because 
they are increasing their emissions.
    Second, the acid rain provisions only cap one pollutant, 
sulfur dioxide, and they only apply to power plants. They don't 
limit other pollutants from power plants such as nitrogen 
oxides and mercury, and they don't limit pollution from the 
other 16,000 facilities covered by your rule.
    Third, we would get dramatic emissions reductions if EPA 
enforced the new source review provisions rather than gutting 
them. Just last April EPA trumpeted a $1.2 billion NSR 
settlement as the, ``largest Clean Air Act settlement with a 
utility in the history of EPA,'' eliminating over 200,000 tons 
of air pollution per year. Yet the legal rationale for the NSR 
rule imperils the ongoing NSR enforcement cases, and you have 
said you are unlikely to bring any new enforcement actions 
based on the old rule. If the new rule caused EPA to lose even 
one ongoing enforcement case, it would affect emissions. But if 
the rule stands, it may largely derail the 5-year NSR 
enforcement effort. This would dramatically increase emissions 
compared to what we could have otherwise achieved.
    Ms. Horinko, wouldn't it be more straightforward for the 
administration to admit that this rule allows increased 
emissions compared to enforcing existing law? Why not have an 
honest debate about whether we should weaken environmental 
protections to save industry money?
    Ms. Horinko. Congressman, a few things in response to that.
    First of all, years worth of litigation resulted from the 
initiation of the New Source Review enforcement program, and 
after 8 some years of litigation, the first decision that we 
got in the Ohio Edison case in August hasn't even reached the 
damages phase. So we've yet to see any environmental 
improvement after years of litigation in that case. And even 
that case where prior legal theory was upheld, the judge said 
case-by-case enforcement policy is not the way to establish the 
law of the land. There should be some type of regulation that's 
uniform.
    Second, we did conduct a regulatory impact analysis that's 
contained in the final rule. I recommend it for your reading. 
It is a very lucid and very compelling rationale for this rule, 
and we will be pleased to sit down with you to discuss any of 
the specifics. We will continue to monitor the implementation 
of this rule to make sure that it is done in a way that is 
environmentally neutral or even improves environmental 
protection.
    Mr. Waxman. Well, I hear what you're saying, but I don't 
think it's very persuasive, and I don't think you seem to have 
persuaded many others.
    I have here, Mr. Chairman, about 60 editorials from around 
the country all decrying this new rule, and I'll read just a 
few of the headlines. Miami Herald says, ``EPA in retreat. U.S. 
going soft on the Clean Air Act.'' Pittsburg Post Gazette says, 
``Dirty air, dirty politics.'' Tennesseean says, ``The skies 
are murkier with `clean air' rule.'' Omaha World Herald says, 
``Ignoring the evidence: Another black eye for Bush's record on 
the environment.'' Denver Post says, ``Politics of pollution.'' 
The Buffalo News says, ``Air pollution: The day the President 
sold the skies.''
    I've been discussing the NSR rule, but it's only the most 
recent and most egregious example of this administration's 
ongoing attack on environmental protection. This record calls 
into question the administration's purpose in supporting this 
EPA elevation bill.
    Thank you, Mr. Chairman.
    Mr. Ose. I thank the gentleman.
    Mr. Connaughton, the Under Secretary for Policy Planning 
and Innovation Section, which is Section 7(d), outlines the 
duties for that person; and during this subcommittee's prior 
hearings witnesses testified that EPA's program offices 
frequently do not coordinate their efforts. They conduct their 
own regulatory science and in some cases impede environmental 
innovation. In other cases, program offices have occasionally 
obstructed the efforts of other offices within the Agency. In 
general, Mr. Connaughton, does the administration agree with 
the concept of a centralized policy division such as the Under 
Secretary for Policy, Planning and Innovation?
    Mr. Connaughton. The short answer is yes. The more detailed 
answer that fills that out is we have had very good experience. 
The two examples I gave, the Department of Interior, Department 
of Transportation--with an Under Secretary level type function 
for policy that enables that horizontal coordination that's so 
important as we get into the next century of multimedia and 
more complex solutions that are needed. So a lot of the think 
tank work and other work that's contributed to where we are 
today toward the recommendation for such a function I think is 
underscored by the success of the policy operations of these 
other departments.
    Taking that horizontal view, it doesn't diminish the 
programmatic power and authority of the individual Assistant 
Administrators or just the secretaries if elevation occurs. It 
won't diminish that but will enable somebody who's responsible 
for looking for opportunities in one program office and how 
they can link together with opportunities in another program 
office, and that's where the next generation of solutions 
resides.
    Mr. Ose. And that would be the case regardless of who's in 
the White House or otherwise?
    Mr. Connaughton. That's correct.
    Mr. Ose. Now, Ms. Horinko, does the EPA support an Under 
Secretary for Policy, Planning and Innovation as proposed in 
this section of the bill?
    Ms. Horinko. Yes, we do, and I couldn't have put it more 
eloquently than Mr. Connaughton.
    Mr. Ose. Thank you both for your testimony on that. We have 
heard concerns from many groups regarding the lack of 
coordination between the office of enforcement and the program 
offices. Recently some States--and we do have some folks who 
will testify in the second panel--have expressed frustration 
over the issue of blending at publicly owned wastewater 
treatment plans.
    Without getting into the details and merits of the issue, 
regardless of which side you're on, the bottom line seems to be 
that the EPA's enforcement office has been enforcing one set of 
standards while EPA's Office of Water has been issuing another. 
The result is that States and owners of wastewater treatment 
plants are receiving inconsistent treatment from different EPA 
offices.
    One of the objectives of this legislation is to coordinate 
the policy. Does this legislation assure us or is this 
legislation a step in the right direction toward making the 
reality in the field that enforcement and policy offices work 
more closely together?
    Ms. Horinko. This legislation is certainly a step in the 
right direction. I'm not sure that any Cabinet department or 
agency could assure that all 20,000 employees are all on the 
same page at any one time, but I think it will help with that 
important coordination function so that the enforcement in the 
program offices is more closely aligned.
    Mr. Ose. I have to come back to this blending issue which 
is very important in California. It's a huge opportunity for 
some of my attorney friends in California.
    Are you saying that we can at least take a positive step 
toward addressing, if you will, what might be conflicting input 
that a local agency receives by coordinating this policy issue? 
That's my objective, and I want to see if you read it the same 
way.
    Ms. Horinko. I do read it the same way.
    Let me add, though, on blending that we are moving now even 
administratively to try and solve this very important issue. 
We've heard from municipal operators of POTWs. We've heard from 
States. We've heard from regulatory agencies at the local 
level, environmental advocacy groups. A number of folks have 
requested clarification on this issue. So we are actually 
planning to publish for comment a draft policy on this issue 
that will ensure that----
    Mr. Ose. The policy thing is not what I'm after. I'm after 
the consistent application of whatever the policy is. I'm 
trying to keep this discussion to structure.
    Ms. Horinko. Well, as a practical matter, this structure 
will help facilitate that kind of coordination between the 
program and the enforcement offices.
    Mr. Ose. All right. Thank you.
    The gentleman from Utah.
    Mr. Cannon. Let me just followup on this discussion a 
little bit. What I understand you're saying is that, under 
Section 7(e) of the bill, the Under Secretary for 
Implementation, Compliance and Enforcement, that position will 
have a tendency to make consistent the rulings in the various 
States, the various regions so that both the States and the 
people being regulated have the ability to be more--they will 
be able to predict better what they need to do to comply.
    Ms. Horinko. Yes. We do have some slight modifications to 
make to give us a little more flexibility in terms of how we 
manage our programs, but in general, integrating the program 
office operations with the enforcement office will, I think, 
improve our ability to have consistent application and 
interpretation of the laws.
    Mr. Connaughton. And I would note the most important 
feature is actually the prevention of those kinds of 
inconsistencies. Because you end up with, again, a few people 
at the horizontal view who will be better able to anticipate 
some of these inconsistencies that invariably will happen, 
whether it's region to region or between the enforcement office 
and the program office as they are evolving their programs. So 
it is that group at the top that will--again, I think will have 
a better preventive function to head some of those 
uncertainties off.
    Mr. Cannon. Thank you very much.
    Mr. Chairman, before I yield back, I note that the 
gentleman from California has departed. Unfortunately, I had 
wanted to know if the New York Times had opined on this issue 
of the roll of EPA under this administration, not to suggest 
that the media has any bias at all or that the media has any 
consistency or integrity on this issue.
    With that, I yield back the balance of my time.
    Mr. Ose. The Chair thanks the gentleman.
    Mr. Connaughton and Ms. Horinko, we want to thank you for 
appearing before the subcommittee today and testifying on this 
particular legislation. We appreciate you taking the time. We 
may have some questions so we may submit them to you. We'd ask 
for a timely response.
    Ms. Horinko. Will do.
    Mr. Ose. The record stays open for 10 days for submittal 
questions and the like. We thank you both. Have a great day.
    Ms. Horinko. Thank you very much.
    Mr. Ose. If we could get the second panel to gather at the 
witness table, we'll take a very short recess here while they 
do that.
    [Recess.]
    Mr. Ose. OK. We're going to reconvene here. I want to thank 
the witnesses for gathering at the table quickly and 
expeditiously. I'm told three of you have planes to catch here. 
OK, four. What time is your plane?
    Mr. Chisum. 5:45.
    Mr. Roitman. 6 o'clock.
    Mr. Hammerschmidt. 6:30.
    Mr. Guzy. 6:30 also.
    Mr. Ose. Oh, Lord.
    Mr. Elliott, Dr. Guzy, I appreciate you offering to stay. 
We're going to ask you for a little bit of your indulgence 
here.
    We're going to go across left to right to Dr. 
Hammerschmidt, and then we're going to jump to Mr. Guzy, and 
we'll come back to Mr. Elliott and Dr. Moghissi.
    Now, I want to welcome to our witness table our second 
panel. The first is State Representative Warren Chisum with the 
Texas House of Representatives. Welcome. We have Howard 
Roitman, director of environmental programs for the Colorado 
Department of Public Health and Environment. Welcome. We have 
Dr. Ron Hammerschmidt, who is the director, Division of 
Environment for the Kansas Department of Health and 
Environment. Welcome, Doctor. We have E. Donald Elliott, former 
EPA General Counsel and current partner at Willkie, Farr & 
Gallagher LLP. Welcome. We have with us Dr. A. Alan Moghissi, 
who is president of the Institute for Regulatory Science. 
Doctor, welcome. And we also are joined by Gary Guzy, who is 
the former EPA General Counsel and current partner at Foley 
Hoag LLP. Welcome.
    Now, as is our practice, if you'd all rise, we'll swear you 
in.
    [Witnesses sworn.]
    Mr. Ose. Let the record show the witnesses answered in the 
affirmative.
    Our first witness on the second panel is the Honorable 
Warren Chisum with the Texas House of Representatives.
    Sir, we have your testimony, as we have everybody else's. 
We have read it. Our practice here is to recognize you each for 
5 minutes to summarize. We look forward to your testimony.

 STATEMENTS OF STATE REPRESENTATIVE WARREN CHISUM, TEXAS HOUSE 
 OF REPRESENTATIVES; HOWARD ROITMAN, DIRECTOR OF ENVIRONMENTAL 
PROGRAMS, COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT; 
   DR. RON HAMMERSCHMIDT, DIRECTOR, DIVISION OF ENVIRONMENT, 
KANSAS DEPARTMENT OF HEALTH AND ENVIRONMENT; E. DONALD ELLIOTT, 
FORMER EPA GENERAL COUNSEL AND CURRENT PARTNER, WILLKIE, FARR & 
 GALLAGHER LLP; DR. A. ALAN MOGHISSI, PRESIDENT, INSTITUTE FOR 
   REGULATORY SCIENCE; AND GARY S. GUZY, FORMER EPA GENERAL 
          COUNSEL AND CURRENT PARTNER, FOLEY HOAG LLP

    Mr. Chisum. Thank you, Mr. Chairman. Having served 16 years 
listening to the testimony, I assure you I'll be brief and be 
within your 5 minutes.
    In my legislative career, I served as chairman of the ALEC 
committee, the NCSL vice chairman of their environmental 
committee as well as the energy council. I am currently the 
chair of the Southern Legislative Conference Energy Committee 
and Environmental Committee. Likewise, being in Texas, we work 
along the border on various environmental issues across 
borderlines in an effort to bring us into compliance with the 
Clean Air Act.
    To be very upfront about it, I think making EPA a Cabinet-
level position probably has a lot of credibility. I think it 
would put us on an equal footing with some other countries and 
give more credit to the fact that surely we make the 
environment a very high priority here in the United States.
    On the issue that I particularly liked about the bill, on 
using peer-reviewed science in order to make policy and 
compiling that with statistical data I think that is a great 
way to make regulation. We try to do that in the State of 
Texas, but actually most environmental policies in the States 
nowadays are complying with Federal law, not actually trying to 
create State laws that do anything other than comply. We 
appreciate what EPA does in pursuing our bad actors. When we 
find bad actors, we can be sure that the Department of Justice 
applies the enforcement, and many, many times that helps us in 
the State of Texas as we pursue our goal to have a cleaner and 
better environment.
    We also, being an agricultural production State, think that 
it's imperative that we give special emphasis on making sure 
that we are able to produce our food and fiber from our 
farmers. We think that they can be good stewards of the land, 
and with the knowledge that they can receive from science, they 
can do a good job. Likewise, we think it's essential that we 
not give up our food production, as we have oil production, to 
the foreign countries.
    Finally, Mr. Chairman, I would like to relate to you an 
incident where we were trying to come up with a State 
implementation plan [SIP] in order to comply with the Clean Air 
Act, and everything we tried we came up, we were still short, 
and so we borrowed from California what was known as the Carl 
Morio program, where the State of Texas taxed its citizens $800 
million in order to create an innovative program whereby we 
could go out and retrofit on-road and off-road diesel engines, 
thereby bringing our regulation into compliance with the State 
of Texas. This would not have worked had the regional director 
not had the ability to have flexibility in order to allow our 
SIP program to be approved, provided that we spend this kind of 
money on new, innovative programs. So some flexibility at the 
regional level is essential.
    I think that the States can work with EPA regional offices 
and can come up with better ideas to protect the environment, 
and I would encourage you to make sure in your program that you 
make sure that States have the ability to work with the 
regional offices and not have all policy made here in 
Washington, DC.
    With that, Mr. Chairman, I'll yield the rest of my time.
    Mr. Ose. I thank the gentleman. His word is good.
    [The prepared statement of Mr. Chisum follows:]

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    Mr. Ose. Our next witness is Howard Roitman.
    Sir, you're recognized for 5 minutes. Thank you for joining 
us.
    Mr. Roitman. Good afternoon, Mr. Chairman and distinguished 
members. Thank you for the opportunity to testify on H.R. 37 
and H.R. 2138 on EPA elevation to Cabinet status.
    We conceptually support H.R. 2138 because it makes tangible 
steps toward bringing our environmental laws into the 21st 
century through the reorganization of EPA to strengthen science 
and to provide more consistent policy direction and 
implementation across the Agency.
    Current laws were designed to resolve discrete problems 
with air, land and water. This single media approach has been 
effective in achieving environmental improvements but has 
resulted in a fragmented patchwork of regulatory requirements 
that makes it more difficult to address cross-media 
environmental challenges.
    So today we are at a crossroad. You have the opportunity to 
provide direction for environmental programs to move in the 
future. If we open one door, we continue a single media command 
and control approach that often discourages innovation and 
efficiency. This path will continue to require technology-based 
controls without considering their cross-media impacts.
    To illustrate our point, if the air program requires a 
company to install a control device such as a wet gas scrubber, 
it typically considers the percentage of air emissions 
reduction. We don't consider the hazardous waste generated that 
must be managed, the system that must be built to treat the 
wastewater, the increased energy consumption which increases 
air emissions, the increased water usage or any other increase 
in natural resources consumed. Instead, the program simply 
considers the scrubber can control 99 percent of the sulfur 
dioxide emissions out of a stack.
    In the alternative, the company could use a catalyst 
additive that once spent or used is purchased by a cement 
manufacturer which uses it as product in place of mining 
additional limestone, thus avoiding an environmental impact. 
The catalyst does not generate wastewater, nor does it use as 
much energy or water. The catalyst will control 95 percent of 
the stack emissions.
    We call this approach the environmental balance sheet in 
making environmental decisions where we consider the full 
environmental costs and benefits of all the options. This 
approach is discouraged and at times not allowed under the 
current system due to significant institutional policy and 
regulatory barriers.
    The current path drives companies' environmental staff to 
be paper pushers instead of environmental problem solvers. 
Companies spend an inordinate amount of time and resources 
providing information.
    In our experience, the environmental professional in this 
country is one of the most underutilized resources in our 
companies. This person can be a profit center for the company, 
driving ideas for greater efficiencies, reduced costs and 
better environmental benefit if given the tools and flexibility 
to do so.
    So what is the alternative? It would require agencies to 
make environmental decisions considering the environmental 
balance sheet. This approach allows companies to select the 
most efficient approach such as preventing pollution, 
engineering the use of toxics out of products and designing 
products that have no waste stream. To pursue this direction 
requires better information to use when making decisions. This 
is why the creation of a Bureau of Environmental Statistics is 
important.
    Agencies will be required to continually assess, using data 
and science, the greatest environmental issues that need to be 
addressed and whether the current programs are successful. This 
will not only encourage but make essential to success 
innovative approaches. It will also ensure that we have 
identified the real problem, the causes behind it and allow us 
to evaluate the alternatives.
    This path has several benefits. First, it will require EPA 
to consider the full impact of its decisions. It will encourage 
innovative programs and ideas to be embraced by the Agency. It 
will garner even more significant environmental benefits; and, 
finally, it will encourage companies to search for the most 
efficient approach to reducing environmental impacts.
    Colorado is currently implementing this approach, but it 
isn't easy. One of the barriers that we have to ensure against 
is different approaches and interpretations taken by different 
offices of EPA. In the past, we have found differences among 
the program offices, between regions and headquarters, and 
among regions. What we are looking for is a Federal system that 
requires cross-media approaches and encourages and integrates 
innovations across the board. The goals of the system would be 
to collect better data and use it to make environmental 
decisions.
    Thank you for your time and attention. I would appreciate 
the opportunity to supplement this testimony. I'll be pleased 
to take any questions you may have.
    Mr. Ose. I thank the gentleman.
    [The prepared statement of Mr. Roitman follows:]

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    Mr. Ose. Our next witness is Dr. Ronald Hammerschmidt. He 
is the director of the Division of Environment for the Kansas 
Department of Health and Environment.
    Sir, welcome. You're recognized for 5 minutes.
    Mr. Hammerschmidt. Thank you, Mr. Chairman. I am glad to be 
here today to speak on the two proposals under consideration.
    My professional experience is that of both laboratory 
chemist and environmental professional, and I have spent time 
in both the laboratory and office in policymaking in my 23 
years with the Department.
    We like many other agencies have a love-hate relationship 
with EPA. We work together. We depend on EPA to provide us with 
a significant source of funding, and we always receive 
direction on our programs, either in the form of guidance, 
regulation or sometimes under the guise of partnership. Many of 
our programs are joint programs such as that to protect the 
safe drinking water in the State. There are even times when 
State programs may have even actually progressed beyond those 
of EPA; and as is the case in Kansas, we've been in the 
regulatory business for confined animal feeding operations for 
a long time and feel that EPA is finally catching up to us.
    We have many frustrations in dealing with EPA. They include 
slow decisionmaking, a lack of understanding of State programs 
and their challenges, rigid approaches to problem solving and 
inconsistent guidance between regions.
    For me personally, one of the bigger frustrations is the 
amount of time it takes for EPA to deal with Kansas's multiple 
water quality regulations. The net result of this has been 
numerous lawsuits have been filed against us and Region VII 
which don't make us any better in protecting water quality but 
do take a significant amount of time.
    There are decisionmaking processes within EPA that we can 
cite that we have experienced with multiple interpretations of 
the same guidance among various regions. Something that we may 
enforce in Region VII may not necessarily be even accepted in 
Region VIII or enforced in Region VIII.
    In addition, regional managers must routinely confer with 
EPA headquarters, and they may or may not receive a response or 
authority to move ahead on an issue.
    States have a need for scientific support for our 
decisionmaking processes. We are often asked by our State 
legislators and policymakers, what's the scientific and 
technical basis for what you're trying to do? We need both 
science, data and information. Unfortunately, there are cases 
when this is lacking.
    The creation of an independent structure charged with 
science and information is an excellent proposal. We need 
quality science in all aspects of environmental protection. 
Although I avoid the use of the word ``good'' science, we do 
need rigorous peer-reviewed science, and we also need to 
convert a great deal of that statistical data into information 
that our citizens can understand and that we can use. I see the 
creation of a Bureau of Environmental Statistics as a very, 
very positive step.
    In addition, the administrators, managers and staff of 
EPA--and I'm speaking specifically to those in policy, planning 
and innovation--should also be charged to be knowledgeable with 
understanding the programs they're writing regulations for. If 
one is writing a regulation for public water supplies, one 
should have information both on a scientific and technical 
basis but also direct experience in what it takes to run those 
particular programs. It would be helpful if that EPA person in 
headquarters writing the regulations had actually ever been to 
a drinking water plant and seen how it worked.
    An important function of this level of the Department, and 
that of the implementation, compliance and enforcement 
structure, is to bring consistency and equivalency to decisions 
in the Agency. These decisions are extremely important to 
States. They're also important to those that we regulate. We, 
like the batter in the major leagues, are looking for 
consistency in how to predict what the rules are. It would be 
nice to know what the strike zone is which sometimes moves on 
both us and the regulated community.
    In addition, the last point I'd like to make before I close 
is, as a State program director, I'm very interested in 
maintaining the ability to go to the top. I think it's 
important for us to be able to influence decisionmaking within 
the Department, and I actually see this as an important role 
for the Under Secretary for Implementation, Compliance and 
Enforcement, should be to be and act as a State's advocate 
within the structure at U.S. EPA or the Department of 
Environmental Protection.
    In conclusion, I want to say that we are supportive of 
elevation to Cabinet status, but we think many of the ideas 
that you've put in H.R. 2138 are a very positive approach to 
bring better science and more consistent decisionmaking to EPA.
    With that, I thank you.
    Mr. Ose. I thank you, Dr. Hammerschmidt.
    [The prepared statement of Mr. Hammerschmidt follows:]

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    Mr. Ose. Now, as we discussed, we're going to go all the 
way over to Mr. Guzy who joins us. He is here. He has 
previously served two decades in practicing environmental law. 
He had the privilege of serving as the EPA General Counsel 
during the prior administration. He has practiced in the 
private sector, and he's represented EPA during his tenure at 
the Department of Justice.
    Sir, you're welcome. You have 5 minutes.
    Mr. Guzy. Thank you, Mr. Chairman, Mr. Tierney and members 
of the committee for today's invitation. I commend the chairman 
for his continued leadership in addressing this very important 
issue.
    Former Administrator Reilly described EPA as ``uniquely the 
environmental overseer, watchdog and point of reference 
regarding the status, needs and problems of ecology and 
environmental health in America,'' surely a Cabinet-level role.
    I urge the committee to seize the current opportunity once 
and for all to elevate the Agency, but this will only happen if 
the implementing legislation is straightforward and 
unencumbered by limitations on EPA's authority.
    H.R. 37, introduced by Congressman Boehlert, meets this 
test. H.R. 2138, in my view, unfortunately does not.
    The history of efforts to elevate EPA could not be clearer. 
Time and again these efforts have stalled because an 
unencumbered approach became laden by controversial concerns. 
Please let's not make the same mistake again.
    EPA's charter must remain fluid and nimble to respond to a 
future that is impossible to predict. When I first came to EPA 
in 1994, its Web sites received approximately 100,000 hits per 
year, and today they receive over 125 million hits per month. 
What a change in just a few years.
    H.R. 2138's mission statement, limited to some vague notion 
of unreasonable risk, is unfortunately value laden, potentially 
too rigid, at odds in spirit with individual statutes and 
certainly will be controversial.
    Would the new Department even be able to pursue under this 
standard some of the very areas of focus now recommended by 
NAPA, the National Academy of Public Administration, such as 
addressing climate change and nonpoint source pollution, their 
top priorities? If Congress wants to change the standards for 
protecting our air, our water or our land, it should have that 
debate in the context of the individual legislation and not 
under the guise of changing the Agency's name.
    On science, I urge you to be cautious when you hear sound 
science as a justification for change. In the late 1990's, 
during my tenure at the Agency, the poster child for bad 
science repeatedly cited by Congress and industry was EPA's 
association of elevated fine particles and premature deaths. 
These criticisms at the time ignored the extensive peer review 
that had occurred both outside and inside the Agency, and since 
then these criticisms have been discredited by an independent 
review body, by ample newly developed peer-reviewed science and 
even through the crucible of litigation all the way to the 
Supreme Court, where EPA received a unanimous victory.
    Too often claims of flaws in EPA science have been used by 
advocates to bolster mere policy disagreements, and some 
scientific uncertainty is inevitable as a fact of regulatory 
life.
    Other proposed changes to EPA's structure, while well 
intentioned, may suffer from unintended consequences. Does 
placing regulatory development under the Under Secretary for 
Policy while having all regional permitting activity supervised 
by the Under Secretary for Implementation mean that EPA will 
lose touch with the real-world consequences of its regulatory 
actions? Does the Chief Financial Officer have the competence 
to address regulatory costs? Can the Bureau of Environmental 
Statistics' mission of transparency be squared with an approach 
that withholds from the public any corporately identifiable 
data?
    My point is not that H.R. 2138 does or does not have it 
right. It is that these issues are complex and deserve careful 
analysis.
    H.R. 2138 raises important issues about how EPA's 
operations can be improved. I agree with the need to take 
additional steps to integrate science into agency resource and 
regulatory decisionmaking, with strengthened independent 
statistical data and with the need to enhance EPA's ability to 
move toward creative multimedia approaches, but I recommend you 
join truly straightforward Cabinet elevation with the creation 
of a high-level commission to report back here on proposed 
changes to enhance the new Department's effectiveness.
    Now, we'd be remiss if we didn't root this discussion in 
the context in which it's currently occurring. I am very 
concerned, as I believe the American people increasingly are, 
that Cabinet elevation will be seen as nothing more than window 
dressing if we continue down the road the administration has 
been taking on the environment.
    The administration claims to want to empower States to 
carry out environmental protection, yet it undercuts them when 
their interests do not neatly align with its own. Within the 
last few weeks EPA compelled States to adopt its controversial 
new source review changes. The Solicitor General filed a brief 
in the Supreme Court opposing important tools that California 
uses to protect citizens from its unique air quality problems.
    The administration claims to support sound science, yet EPA 
removed a comprehensive discussion of global climate change 
from its efforts to assess the state of the environment. It 
continues to ignore the findings made by the National Academy 
of Sciences at the administration's own request that climate 
change impacts are human-induced and real. It has issued gag 
orders on perchlorate. It has not allowed EPA staff to conduct 
studies of mercury emissions. It has revoked the requirements 
for science-based plans to accomplish watershed planning 
through total maximum daily loads.
    These are just a few examples of an approach that seemingly 
at every turn belittles environmental and public health 
protections. Achieving the historic step of elevating EPA to 
Cabinet status, however worthy, cannot and will not obscure 
this troubling record; and I urge you to address these real 
problems as well.
    Thank you most kindly for the opportunity to testify. I'd 
appreciate having my full statement placed into the record, and 
I'd be pleased to answer any of the committee's questions.
    Mr. Ose. Thank you, Mr. Guzy.
    [The prepared statement of Mr. Guzy follows:]

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    Mr. Ose. Mr. Elliott, thank you for your patience. You're 
recognized for 5 minutes.
    Mr. Elliott. Thank you, Mr. Chairman.
    I agree with my colleagues that it's important to elevate 
EPA to Cabinet status. I do disagree with my good friend Gary 
Guzy. I support the chairman's bill primarily because of its 
provisions to upgrade the role of science at EPA and make other 
important organizational improvements.
    After 20 years of study of the Agency as an academic, I am 
convinced that the single most important thing we could do to 
improve the Agency is to create a high-level advocate for 
science at the highest reaches of the Agency. I can't improve 
on the report by a distinguished committee of the National 
Academy of Sciences in 2000 which said, ``Just as the advice of 
the Agency's legal counsel is relied upon by the Administrator 
to determine whether a proposal is legal, an appropriately 
qualified and empowered science official is needed to attest to 
the Administrator and the Nation that proposed action is 
scientific.''
    As I reflect upon my own experiences at EPA as General 
Counsel, I believe that scientific considerations were, 
unfortunately, conspicuous by their absence from the high-level 
dialog at the Agency. This situation has gotten worse rather 
than better in subsequent administrations.
    I respectfully disagree with my friends such as Gary Guzy 
who think that any kind of changes in Cabinet status 
legislation will make it unenactable. I think that is a 
demonstrably mistaken theory that has been really discredited 
by history. We've had a number of simple elevation bills in the 
past but they have not been enacted essentially for political 
reasons. I hope that this time, for a variety of reasons, it 
will be possible to elevate EPA to Cabinet status. I think the 
true test is the one that Jim Connaughton articulated, and that 
is that Cabinet status legislation should be limited to truly 
organizational or structural issues such as creating an Under 
Secretary for Science, but there's plenty of room to do that, 
and it would be an important reform.
    The problem in my experience is the triumph of politics at 
EPA. It's not that EPA lacks scientific information but rather 
there is a reality or a perception that decisions are based on 
politics rather than on science. This is a bipartisan disease. 
We can have abuses and ignoring of science either of the right 
or of the left.
    Adam Smith, the great political philosopher and founder of 
economics, once wrote, ``Science is the great antidote to the 
poison of enthusiasm and superstition.'' He should have written 
that it is a bipartisan antidote, and science is an antidote 
for the superstitions and enthusiasms of either the right or 
the left.
    In my view, the problem is that we don't have a high-level 
advocate for science at the top councils of the Agency, and I 
hope that the committee and the Congress and the Nation will 
seize this historic opportunity to strengthen the voice of 
science at EPA.
    I thank the committee; and Congressman Shays in particular 
from my home State of Connecticut. It is a pleasure to be 
testifying in front of you as well.
    Thank you very much, and I'd ask that my written statement 
be made part of the record.
    Mr. Ose. Without objection. The Chair thanks the gentleman.
    [The prepared statement of Mr. Elliott follows:]

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    Mr. Ose. Dr. Moghissi, welcome. Thank you for your 
patience. You're recognized for 5 minutes.
    Mr. Moghissi. It appears to me that the three former EPA 
people have been lumped together and, as usual, we all don't 
agree.
    My perspective is as a former principal----
    Mr. Ose. Dr. Moghissi, if you could just take the throat of 
the mic, the little extender, and straighten it. The mic is 
like this. Take it and go like that. There you go.
    Mr. Moghissi. Here we go.
    Mr. Ose. We need an attorney for some useful purpose. We 
welcome you, Dr. Moghissi.
    Mr. Moghissi. I won't tell my joke on attorneys. I'll leave 
it for a later date.
    My perspective is as a charter member of the Environmental 
Protection Agency, as a former principal science adviser for 
radiation hazardous materials, as an academic administrator--I 
was assistant vice president of University of Maryland and 
associate vice president at Temple University and as a 
professor at various universities. I'm a scientist. I'm not a 
lawyer. I'm not a politician.
    Let me briefly say what led to the decision to support the 
bill under consideration. We at the Institute for Regulatory 
Science are dedicated to the idea of best available science, 
and my statement includes details of what constitutes best 
available science, and I would appreciate if it's made part of 
the record.
    Mr. Ose. Without objection.
    Mr. Moghissi. My frustration started when I arrived in 
Washington as a principal science adviser in 1977, worked in 
the various work groups and recognized how the regulations were 
written. I was extremely frustrated at that time when I talked 
about regulatory science, it was considered a joke, these are 
contradictory terms.
    Now, we are in the process--we have two studies in 
progress. The reason I'm bringing them up is because my 
conclusions are derived from those two studies. One, the study 
of science at the EPA--with all due fairness to my friend on 
this side on the EPA's science. There's a large consensus 
within the scientific community that the EPA's scientific--the 
scientific foundation of EPA's regulations is largely poor.
    I have come to the conclusion, as my friend on the right 
side has come, that the inclusion of politics--I call it 
ideology--is responsible for the poor science. I believe, like 
he does, that the EPA scientists, my former colleagues, are 
outstanding like other scientists are, but I believe the 
management has done some damage to it.
    The second study deals with the objective of environmental 
laws. Our preliminary study indicates that the objective 
overwhelmingly is the protection of the human health, and the 
human welfare is secondary to it. The reason we worry about 
ecology is because ecology can produce products that aren't fit 
for human consumption.
    Now, if I may be permitted, I have some of my friends who 
heard that I'm supporting the bill--they have contacted me and 
tell me how could I do that? It is simple. In my judgment, if 
the EPA is forced to rely upon independent peer review--and the 
operative word is independent--then the cost of the operation 
of the EPA, even with the addition of the Under Secretary of 
Science, even with the addition of the Bureau of Environmental 
Statistics, will be reduced rather than increased. I would be 
happy to elaborate why I believe that.
    Second, I would appreciate it if a sentence in my 
testimony--the written testimony is slightly modified. The 
section, ``What is best available science,'' the first sentence 
under ``Science versus non-scientific objectives,'' it should 
read, ``There is ample evidence indicating that the intrusion 
of nonscientific objectives would jeopardize the objectivity 
and consequently the acceptability of scientific information.''
    Let me go now and suggest--I will use my all diplomatic 
skills and suggest that the H.R. 37 should not be considered. 
What is the point? The EPA, as the Administrator already said, 
is already a member of the Cabinet. She participated in all the 
Cabinet meetings. So why would anybody want to change it? 
Passing a law with all the changes that need to be done simply 
to change the name of an agency that is a Cabinet member 
already to another Cabinet member? I don't see why maybe 
scientists are not smart enough to know the reason for 
something like that.
    Now, I'm strongly recommending that the word environment in 
the bill be defined--and I have a definition. ``Environment 
means humans, other living things and environmental media.'' 
Environmental media are already defined. Because of the study, 
as I described, it would meet the objective of the bill.
    Second, I'm recommending that the Peer Review Team be 
renamed to Peer Review Oversight Team and will be given the 
responsibility to oversee the peer review activities of the 
Department of Environmental Protection by appointing specific 
panels. And I would be happy to elaborate on that.
    Thank you very much, sir.
    Mr. Ose. Thank you, Dr. Moghissi.
    [The prepared statement of Mr. Moghissi follows:]

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    Mr. Ose. Now, this is our fifth hearing on this concept of 
elevation of the EPA. In our June 6th hearing, this committee 
heard testimony regarding problems with EPA's operations and 
science, with the effectiveness of its regulations and its 
impact on the regulated community, with problems States have 
with EPA's regional and program offices, with the lack of 
cross-media research, in addition to a number of other issues. 
The sum and substance of that was that many of our witnesses 
believe that, after 30 years of what they describe as seeking 
piecemeal improvements, EPA needs to be reformed structurally.
    I'm going to go from my left to my right here. Mr. Chisum, 
should Congress make improvements to EPA's organizational 
structure concurrent with its elevation?
    Mr. Chisum. Absolutely. I think that Congress could 
instruct EPA or the new Cabinet-level position to work more----
    Mr. Ose. Move that microphone closer to you, if you would, 
please, because we bought a whole bunch of new mics. So 
everybody gets one.
    Mr. Chisum. Absolutely, Mr. Chairman.
    I believe that the EPA could work closer with the States on 
new innovative programs in a way to comply with the EPA's 
mandated policies, and I think that could be written into the 
legislation and be a great assistance to the State in meeting 
the requirements under EPA.
    Mr. Ose. Mr. Roitman.
    Mr. Roitman. I think there's no question that there are 
structural improvements that could address a lot of the 
concerns that you raised and that we also echo. I think the 
challenge is going to be how to best integrate those goals 
across whatever organizational structure Congress ends up 
enacting, because--say, with the regions, which is where we 
have our most direct impact, it's important that they have--
they're coordinated across the functional areas that you've 
addressed here so that, whatever the structure is, I think it's 
going to be important to have ways into the process from the 
policy and innovation part, from the science part as well as 
from the implementation part.
    Mr. Ose. Dr. Hammerschmidt, should Congress make 
improvements to EPA's organizational structure concurrent with 
elevation?
    Mr. Hammerschmidt. As usual, I find myself in agreement 
with my neighbor, Mr. Roitman. The short answer is yes, and I 
think we need to focus from our concern as States on science 
and the ability for us to work across all portions of the 
Agency.
    Mr. Ose. Mr. Elliott.
    Mr. Elliott. Yes, I would agree that's a very appropriate 
role for Congress.
    I'd go even farther. If you think about it, there are very 
few other ways that the culture of an existing agency like EPA 
can be changed to become more scientific other than types of 
organizational reforms you're talking about. So I think it's 
crucial that the Congress assume that responsibility; and when 
you study the field, there are very, very few other things that 
can be done to change the culture of an agency other than the 
type of organizational changes you're talking about. So I think 
it's very important.
    Obviously, the challenge is not to micromanage, but I think 
the bill has struck a good balance, giving the Agency 
flexibility for the future, but in a few areas where there is a 
broad consensus, bipartisan consensus of the need for 
improvement, I think the Congress is doing an excellent job of 
sending a signal, and I think it will improve matters for the 
future.
    Mr. Ose. Dr. Moghissi.
    Mr. Moghissi. Yes, I agree with the statement of my friend, 
Mr. Elliott, here. Yes, the bill does provide a reasonable 
balance. As a member of the work groups, I saw what was going 
on in these work groups. Changing the culture by letting the 
scientists be scientists and take the science and draw 
conclusions from it--that culture--would be extremely 
important.
    Mr. Ose. Mr. Guzy.
    Mr. Guzy. I agree that it essentially is Congress's 
prerogative and role to make those changes should it desire to 
do so. I have two kinds of concerns about doing that in this 
instance, as I tried to outline in my testimony.
    First, there are just the practical concerns of whether or 
not in so doing the various competing proposals engender 
controversy that takes us off course of ever reaching elevation 
of EPA to Cabinet status. Because that's the goal I think we 
all agree on. Then, second, the substance of any of those 
proposed changes, are they in fact potentially 
counterproductive?
    What I would recommend instead is that with straightforward 
Cabinet elevation that you create and charge and give a 
timeframe for the consideration of changes by an independent 
high-level body or commission as well as by the Agency and that 
they report back here and then Congress have the opportunity to 
take that information into account in order to come up with the 
appropriate changes after the Agency is already operating as a 
department.
    Mr. Ose. Thank you all.
    The gentleman from Connecticut.
    Mr. Shays. I thank the gentlemen for being here. I missed 
the testimony from the first panel, and I regret that.
    I just really have a comment in general that--probably not 
so enlightened, but I'd like your response to it. If Mr. Ose 
can get this bill passed, he deserves to be President, 
because----
    Mr. Ose. Just a minute now. Wait a minute. I'm trying to go 
home.
    Mr. Shays. Bottom line is, though, it is such a logical 
thing to do and yet it seems so difficult. I have the view that 
the administration has worked hard to convince people that the 
environmental community is mad at it and wants the 
environmental community to be mad at it, because there's no 
other logic for me to understand why they have done some of 
what they've done.
    I agree with this administration on a whole host of issues, 
but when it comes to enforcement of environmental law, I can't 
even explain why we have taken some of the positions we've 
taken. So my only conclusion is that they have wanted the 
environmental community to be mad and express that they're mad 
so that our so-called base is pleased with it.
    Tell me, what tells you that--first, all of you support 
this legislation, is that correct? I mean, in general, you want 
to see a Department of Environmental Protection. Correct? So, 
nodding of heads, there's a basic agreement.
    What tells you that this administration is inclined to 
support this legislation? Mr. Elliott.
    Mr. Elliott. Well, one thing that tells me that is that the 
two administration witnesses, Jim Connaughton and Marianne 
Horinko, said that the administration supported this, as the 
administration's representatives. I think there was an 
important breakthrough in the sense that they both said that 
the administration specifically supported the idea of an Under 
Secretary for Science. They were both very articulate in 
explaining how that would improve the functioning of the 
Agency. And I must say I was very pleased to hear it, having 
been a long-time advocate of that position.
    So I don't believe that any of these provisions are killer 
amendments or unreasonable or will increase the political 
vulnerability of this bill at all. I think they're very, very 
modest and have been really needed for a long time. I mean, 
Gary Guzy's idea of a high-level body making recommendations, 
that's what the National Academy of Science did in the year 
2000.
    Mr. Shays. So if we could get this legislation passed 
without other things being added like risk assessment and so 
on, then you think that we would have a shot?
    Mr. Elliott. Yes, I do. I've been a long-time advocate of a 
concept of unreasonable risk, but I do believe that's the one 
provision that goes over the line and could be cited as having 
a substantive rather than organizational component.
    But I really disagree very strongly, as I've indicated in 
my testimony, with the idea that what has prevented EPA Cabinet 
status from being enacted in the past are the substantive 
provisions of the bill. I think that's a canard, and I think 
it's just demonstrably false.
    What has happened is that, politically, neither party has 
wanted the other party to get credit for EPA Cabinet status. 
Now that we have a situation of Republican control of both the 
House and the Senate and the administration, I think we have a 
historic opportunity to get this done. I don't think we should 
be greedy. I don't think we should have substantive provisions, 
but as long as we're talking truly organizational structure on 
a bipartisan basis, I think it's a unique opportunity.
    The other side of that coin is I think it's a unique 
opportunity to make some long-needed reforms, and that 
opportunity should not be missed.
    Mr. Shays. Is it Mr. Guzy?
    Mr. Guzy. Yes.
    Mr. Shays. Mr. Guzy, or Attorney Guzy, from what I 
understand of your position, that the camel's head under the 
tent, you'll see a lot more--you want to keep the bill as clean 
as possible.
    Mr. Guzy. Well, that's correct. In addition--or to amplify 
on that, if I may, Mr. Shays, I very much agree with Mr. 
Elliott's comments that by far and away the greatest concern 
that I have in H.R. 2138 is the mission statement itself, 
because I do believe that moves beyond purely structural 
changes to the Agency to potentially addressing some very 
significant substantive issues. But there is a way in which the 
substance--I'm sorry, the structure itself can have an impact 
on the Agency's ability to carry out its mission, and I have an 
independent degree of concern about--aside from whatever 
anyone--whatever someone else may add down the road--whether 
this bill has it just right.
    I'd just point out that Administrator Whitman testified 
when she was last here that ``my concern with establishing a 
Deputy Administrator for Science is that science should be 
incorporated throughout the Agency. It should be part of every 
one of the Assistant Administrators' jobs. I don't want anyone 
thinking the Deputy Administrator for Science will take care of 
that.''
    There's a way in which isolating or creating a new 
stovepipe for science can potentially isolate it and remove it 
from the responsibilities of other parts of the Agency. There's 
a way in which taking the science function away from the 
program offices could in fact have regulatory development even 
have a harder time in achieving a sound scientific basis.
    Mr. Shays. I can't imagine if you could achieve a 
Department of Environmental Protection that you would oppose 
the bill based on that.
    Mr. Guzy. I'm sorry.
    Mr. Shays. Based on having a separate Under Secretary for 
Science?
    Mr. Guzy. I believe that there should be the enhancement--
the further enhancement of science at the agency for----
    Mr. Shays. That is not what I asked. In other words, if 
this bill--disregarding the mission statement, which needs to 
be changed a bit, in spite of the former Director of EPA--
Administrator of EPA saying we didn't need a separate Under 
Secretary, you would not oppose this legislation if it could go 
through the House and Senate pretty much this way without the 
mission statement or you would? What would you do?
    Mr. Guzy. And there are a few other issues that I think are 
worth talking about as well. But if your suggestion is a 
structural change that is designed to enhance science as part 
of this legislation and that's it, then--and that would be the 
ultimate result of the legislation--of the legislative process, 
then it's likely something I would support.
    Mr. Shays. Thank you. Thank you all very much.
    Mr. Ose. Thank you, Mr. Chairman. Thank the gentleman. Mr. 
Elliott, on pages 2 and 5 of your written statement, you point 
out that most legislation creating new departments properly 
addresses similar organizational structural issues; in other 
words, the debate on one pretty is much the same for the next 
one after that, so on and so forth. You state that H.R. 2138 is 
truly structural and therefore in your words a clean bill 
without extraneous measures, which I appreciate your 
definition. Does the fact that H.R. 2138 proposes the elevation 
of an already existing agency alter your conclusion as to 
whether or not this is a clean bill?
    Mr. Elliott. No, not at all. I think the fact that it is an 
existing agency is really all the more reason that these types 
of organizational issues ought to be addressed. First of all, 
we have a 30-year track record here, so I think it's entirely 
appropriate for the Congress at the time of EPA Cabinet 
elevation to be reacting to the agency's record and culture and 
history and trying to make a mid-course correction. And I would 
cite, for example, the Food and Drug Modernization Act, which 
was passed almost unanimously by both House and Senate a few 
years ago, as an example of similar structural changes being 
made to an existing agency.
    So I really think there is a good record of Congress 
successfully changing the culture of agencies through 
legislation. Second, I think it's important to bear in mind, as 
Jim Connaughton referred to briefly, that the Under Secretary 
level, which is where you're doing most of the work 
organizationally, doesn't exist today at EPA as an agency. And 
so in EPA Cabinet status elevation, we have an opportunity to 
address what cross-program functions ought to be addressed at 
the Under Secretary level. That's an issue that doesn't really 
arise under the existing organizational structure because you 
don't have that position.
    There were some problems with the idea with a Deputy for 
Science at EPA because of the conflict between two deputies, 
and that was vented in the past. With elevation, the Under 
Secretary level, I think, is the appropriate place to have not 
only an Under Secretary for Science, but also some of the other 
cross-program integration functions.
    Mr. Ose. And one of the things that I have had the pleasure 
of hearing is the claims from all directions in the political 
spectrum that EPA does not use or properly use sound science. 
This gets to the establishment of an Under Secretary for 
Science and Innovation as detailed in section 7 of my bill.
    Mr. Chisum, do you support the centralization of science at 
the new Department and an Under Secretary for Science and 
Innovation?
    Mr. Chisum. Yes, I do, Mr. Chairman, and science combined 
with statistical data will be the best way to make policy.
    Mr. Ose. Dr. Hammerschmidt, what's your position on it? Do 
you support the centralization of science?
    Mr. Hammerschmidt. Yes, I do. I have commented that that is 
one of the better aspects of the bill, one I am quite 
enthusiastic about. In addition, I think a personal concern I 
have within EPA now is we need to do a better job of educating 
EPA staff who are not scientists in scientific concepts and 
that could also be an important function of this particular 
part of the organization.
    Mr. Ose. Mr. Roitman, one of the major irritations I have 
is this cross-media analysis which I don't know of a more 
timely example than our struggle with MTBE in California. We 
are worried about the air and now we've got water, but there 
was no cross-media analysis that satisfactorily analyzed that. 
Would an Under Secretary for Science and Innovation promote the 
cross-media studies that you advocate throughout your written 
testimony?
    Mr. Chisum. I believe it would, Mr. Chairman, because as 
you well know when we talked about MTBE it was mandated and it 
seemed to be the best alternative for it, but now that we've 
looked at it a little closer we find out we can do other things 
in order to reach clean air. So I think it would help.
    Mr. Ose. Mr. Roitman, do you agree with that?
    Mr. Roitman. Yes, I do. Having an Under Secretary for 
Science would very much promote our ability to be smart about 
cross-media impacts of decisions that are being made. What we 
need is good science and good data so that we're looking at the 
full picture when we're making decisions, and I think this 
would very much help that.
    Mr. Ose. I apologize for being very direct on these 
questions and not asking everybody their collective wisdom. I'm 
just out of time here and I see my red light. Mr. Elliott, on 
page 2 of your testimony, you note support to Congressman 
Ehler's approach to elevating science in H.R. 64 and for the 
approach laid out in H.R. 2138, which is my bill. Why do you 
believe that an Under Secretary for Science and Innovation is 
the right way to elevate science at EPA?
    Mr. Elliott. I think you need to change the culture of the 
agency so that science is heard on all issues. Science needs a 
representative at the highest levels in the policy debates at 
the agency. When I was at the agency a decade ago, there were 
only three people in the agency that really had a mandate 
across all the areas of the agency. They were the 
Administrator, the Deputy Administrator and the General 
Counsel. There was a strong norm that scientists should not 
speak unless spoken to, that the Office of Research and 
Development would not interfere with proposals that were being 
advanced by another AA ship. So I think the concept of turf had 
grown up rather strongly. I had one incident where the 
scientists had been in a room at a briefing for the Deputy 
Administrator. They didn't say anything or object and then came 
up to me in the hall afterwards and said, ``Don, how could you 
let this happen. You know this is unscientific.'' When the 
scientists are coming to the General Counsel saying you ought 
to do something to stop this, we have a structural problem at 
the Agency. We need somebody like the General Counsel but a 
General Counsel for Science who can be an advocate for a 
scientific point of view. I think an Under Secretary for 
Science and Innovation is the best way to do that. I think we 
have a structural problem at the Agency and we need a 
structural solution to counterbalance the other forces. We have 
a strong high level advocate for policy or politics at the 
Agency, a strong high level advocate for law, and we need to 
balance those forces with a strong high level advocate for 
science.
    Mr. Ose. Dr. Moghissi, on page 3 of your written statement 
you make several suggestions that you break out into two groups 
to improve the scientific credibility of EPA, including 
removing scientific deliberations from the program offices. 
Would you please explain that a little bit further or elucidate 
us?
    Mr. Moghissi. For the sake of simplicity, I'm going to 
invent a new compound called dimethyl chicken wire. The 
dimethyl chicken wire comes on the market and the department is 
asked to evaluate what the risks are, what the limitations are 
to be placed on it and so forth. The science side of the EPA 
would decide: one, it is a carcinogen, is it a reproductive 
toxin, is it neuro toxic material, what else is there, whatever 
toxicity is there. It determines those response functions; 
would determine what the potential risk may be accurate, with 
the appropriate arrow bars; and that information would go to 
the program offices. They may have scientists. But the peer 
review--the independent peer review science is not provided by 
the program offices. The program offices are qualified to say 
what is an acceptable risk, what is the economics, what is this 
and that, and they come to a conclusion to an appropriate 
regulation. That is the only way in my judgment the 
ideologically processed science which, as of now or has been at 
least in my time, was prevalent at the EPA will disappear.
    Mr. Ose. Under the scenario you have drawn with the 
dimethyl chicken wire, you're suggesting that the lack of 
access to the independent peer review is perhaps a significant 
negative in current process?
    Mr. Moghissi. Yes, sir.
    Mr. Ose. You apparently feel very strongly that an 
independent peer review is an integral part of what we ought to 
be doing?
    Mr. Moghissi. Yes, sir.
    Mr. Ose. Now do you support the statutory mandate for peer 
review?
    Mr. Moghissi. Yes, I do.
    Mr. Ose. During the subcommittee's prior hearings during a 
discussion on the functions of the Under Secretary of Policy, 
Planning and Innovation, some of our witnesses testified that 
most of our environmental laws delegate implementation and 
compliance efforts to the States. Now some of you have 
firsthand experience with that. As a result of that delegation, 
the States play an enormous role in the success of EPA's 
environmental pollution control and prevention. On top of that 
States have their own environmental laws and regulations and 
yet at previous hearings witnesses testified that regional 
offices inconsistently interpret EPA's regulations, their 
nonbinding guidance and our laws. States, as many of you 
testified, require both flexibility and predictability to 
address environmental challenges.
    Now H.R. 2138, which is my bill, provides oversight of the 
regional offices and consolidates the implementation, 
compliance and enforcement functions under a single Under 
Secretary. Mr. Roitman, Representative Chisum in particular, 
and then I want to come to Dr. Hammerschmidt, do you support 
the consolidation of this implementation, compliance and 
enforcement under a single Under Secretary?
    Mr. Chisum. Mr. Secretary, I would support that. However, 
the delegation of implementation of EPA rules and regulations 
needs to stay with States that have agreements with the Federal 
Government in order to do that because we're the one who can 
best identify the bad actors and innovative programs that could 
meet the compliance with EPA rules.
    Mr. Ose. From your position as a member of the State of 
Texas Legislature does H.R. 2138 incorporate such flexibility?
    Mr. Chisum. I believe it does.
    Mr. Ose. Do you support the consolidation of the 
implementation, compliance and enforcement?
    Mr. Roitman. I think it's important that we have consistent 
program implementation among the regions across the country, 
and that is based on a lot of years of experience in talking 
with my colleagues across the country in the implementation of 
these programs. There does need to be flexibility. There is no 
question that there are different issues in Colorado than there 
are in Delaware, for example. But I think you can have 
consistent approaches while still maintaining flexibility.
    The only other comment I would like to make is that I think 
we do need to make sure that the prominence of innovation, as 
you have addressed in the bill also is integrated into the 
program implementation because really the places where we need 
to innovate are in the States and in the regional offices who 
are dealing with the public and dealing with the regulated 
community all the time.
    Mr. Ose. Does H.R. 2138 incorporate sufficient flexibility 
on that standpoint?
    Mr. Roitman. I believe it can.
    Mr. Ose. You believe it can or it does?
    Mr. Roitman. I believe the way it is written allows 
sufficient flexibility.
    Mr. Ose. So if we send you a question, you could expand on 
that?
    Mr. Roitman. Yes.
    Mr. Ose. Thank you. Dr. Hammerschmidt, same question, from 
your perspective in Kansas do you support H.R. 2138's 
consolidation of implementation, compliance and enforcement?
    Mr. Hammerschmidt. Yes. This is part of H.R. 2138 that I 
thought the most about and have actually early on had questions 
about, but I think it does work. What we are looking for as 
States is a spectrum of solutions. Just tell us what the 
boundaries of that particular universe is so that we can make 
the State level decisions and I think the bill does create that 
ability. It's going to have to be charged to that Under 
Secretary to make it happen. And bureaucracies are often in the 
business of implementing what laws are passed by Congress and 
State legislatures, and I think it is going to be very 
incumbent upon the administration to make it happen with their 
appointees.
    Mr. Ose. Regardless of the administration it seems implicit 
in your remarks that the Under Secretary for Science says OK, 
here's the science bounds, parameter x, opposite of x. You have 
to be between these poles here and then the Under Secretary for 
Implementation and Compliance and Enforcement works with the 
States for solutions between those poles, is that the way you 
see it?
    Mr. Hammerschmidt. That's the way I see it. And if I can 
maybe preempt Governor Leavitt on the en Libra process which 
western Governors and Governor Leavitt have developed, they 
make it a very explicit statement that science is for facts and 
process is for making those boundaries.
    Mr. Ose. Mr. Roitman, has your State experienced challenges 
working with regional offices and, if so, do you have 
suggestions as to how to improve that tradition of interaction 
between the State and the Federal EPA?
    Mr. Roitman. I think so much relies on the individuals with 
whom you are dealing with at any particular time. I think right 
now we enjoy a very good relationship with our regional 
administrator and his senior management team. Where you tend to 
run into challenges are farther down in the organization, where 
I think it was Ms. Horinko who talked about the 20,000 
employees at EPA and not everyone necessarily marching to the 
exact same drummer. And it is true in any organization and true 
in mine as well. I'm not sure that there's a structural change 
that would really improve that, although I very much like the 
idea of championing both good science and innovation at the 
senior levels. I think that can only help.
    Mr. Ose. I am very sensitive to everybody's time. That's 
one of the reasons we started exactly at 2, and I know what the 
baggage requirement is at the airport and with what the traffic 
is.
    Does the gentleman from Connecticut have further questions? 
I am going to go ahead and wrap this up with the caveat that we 
have additional questions we are going to submit to you in 
writing. We would appreciate timely responses. The record will 
stay open for 10 days, and that way everyone can make their 
planes and get home.
    I want to thank each of the witnesses today on the second 
panel for their testimony. This is our fifth hearing on the 
subject of EPA elevation. Frankly, most people support 
elevating EPA to the Cabinet, where environmental protection 
for this country and the rest of the world belongs. We have had 
three consistent themes emerge from these five hearings and 
it's very interesting how this has happened.
    First, EPA's organizational structure must be modified away 
from the structure first created in the 1970's, which is not 
addressing adequately the cross-media issue that we confront in 
most regulatory climates today.
    Second, the regulatory science conducted at EPA must be a 
priority within the new department. The science must be of its 
highest quality, must be respected by other scientists and must 
be independent of the EPA regulators or policymakers.
    And finally, EPA deserves to have the benefit of a Bureau 
of Environmental Statistics, much as the Department of Labor 
has with the Bureau of Labor Statistics and the Department of 
Energy has with the Energy Information Agency. A statistical 
agency is not a novel idea. We're not recreating the wheel. We 
are just not creating a novel idea, and that's not news to 
anybody.
    I do look forward to working with the witnesses 
individually, both on this panel and on our previous one and my 
colleagues and the administration to create a strong Department 
of Environmental Protection. We're on the road here, gentlemen, 
and I do appreciate your participation in this. We will work 
through these issues as best we can and hopefully come up with 
a product that we can all be proud of.
    I appreciate you all taking the time today. This hearing is 
adjourned.
    [Whereupon, at 4:20 p.m., the subcommittee was adjourned.]
    [Additional information submitted for the hearing record 
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