Article by Erik Smith. Published on Thursday, November 18, 2010 EST.
Long List of Exemptions – Some Major Efforts Will Continue
By Erik Smith
Staff writer/ Washington State Wire
OLYMPIA, Nov. 17.—Gov. Christine Gregoire caused jaws to drop at the state Capitol Wednesday when she granted the half-wistful wish of Republicans, the business community and local governments across the state – no more new regulations from state agencies for a full year.
It’s not exactly hard and fast; there’s a lengthy list of exemptions, and no one seemed to know for sure Wednesday which new rules will be halted. It seems some of the biggest and most controversial new initiatives from state agencies are still moving full steam ahead.
But it was a dramatic and unprecedented announcement nonetheless, and it caught most Olympians off-guard. The governor appeared tacitly to acknowledge the longtime argument that state regulation imposes huge costs on business and local government, and in times of crisis the burden is difficult to bear.
In her announcement, Gregoire said the time-out is intended to give business and local government a breathing space and a chance to recover from recession. Right now they have bigger things to worry about – like survival.
“State rules are essential to protecting the health, safety, welfare and quality of life for Washingtonians,” she said. “However, in these unprecedented economic times, this action will provide businesses with stability and predictability they need to help with the state’s recovery. The time and effort small businesses would put into meeting new requirements would be better spent in improving their bottom line, and adding new employees. This action will also allow local governments to focus their limited resources on the most critical issues in their communities.”
The announcement brought huzzahs from the business community and dismay from labor and activist organizations.
The governor’s new executive order suspends agency rulemaking through Dec. 31, 2011.
A Surprise to Almost Everyone
The announcement came with no warning to most Olympia players. It left lawmakers reeling.
“It’s huge,” said state Rep. Cary Condotta, R-Wenatchee. “I think the Department of Ecology was ready to do some pretty significant things, and I think she just cut them off at the head. I hope that’s the case.”
But it appears labor and activist groups were tipped in advance. Those organizations had been loyal allies of Gregoire’s Democrats until the last election, when they turned on the party and worked to defeat several of its members. On Monday a coalition of politically active labor unions and environmental groups begged the governor not to do it.
Their letter, excerpted on Seattle’s Publicola website, said in part:
“A broad suspension of rulemaking is a blunt instrument that would send a damaging message about the role of government, would do little to limit expenses or create jobs, and would significantly impair your administration’s efforts to protect the environment, worker safety, public health and other critical government functions in the coming years.”
Big Loopholes
It’s safe to say a legion of lobbyists will be thumbing through the state register in coming days to figure out which proposed rules will be affected. There are some rather big exceptions to the executive order that undercut its effect.
The guidelines drafted by the governor’s Office of Financial Management allow state agencies to continue writing rules if:
n They are required by state or federal law.
n They are required by a court order.
n They are needed for financial reasons.
n They protect the public health, welfare or safety.
n They are supported by the businesses or local governments that they affect.
And who gets to decide? The state agencies themselves.
Energy Code Carries On
None of them seemed to be saying Wednesday which regulations will be halted. But there was plenty of talk about the rules that will proceed.
For instance, one of the hottest regulatory topics of the last couple of years has been a new set of energy-efficiency standards promulgated by the state Building Code Council. The Building Industry Association of Washington has sued to block their implementation, but they are scheduled to take effect next year.
The word from the state Building Code Council was that the energy standards are unaffected. That’s because the rules have already been adopted and published in the state register. BIAW isn’t giving up so fast. “We’re of the opinion that this is something that would certainly impact the energy code,” said spokeswoman Erin Shannon. More litigation, perhaps?
Some Environmental Regulation Continues
The Department of Ecology, one of the state’s most prolific authors of new regulation, released a lengthy list of efforts that will continue unabated. They include air pollution regulation, permitting and reporting requirements for businesses that generate greenhouse gases, rules for distribution of money for water-pollution projects, a moratorium on new wells in the Kittitas Valley, and rules for toy manufacturers.
All qualify under one exemption or another, explained Ecology spokesman Dave Workman. And that is likely just a partial list – the agency is working to determine whether any of its other regulatory efforts qualify to continue.
Who Woulda Thunk It?
Even though there weren’t many specifics Wednesday, astonished Republicans and business organizations said Wednesday they were grateful the governor seemed to see their side of the argument.
State Rep. Ed Orcutt, R-Kalama, issued a press release pointing out that he had suggested the idea. Orcutt offered it up in an unheralded speech on the House floor this year, and he followed it up with a letter to the governor in August. Orcutt noted that Ecology alone had devoted the efforts of at least 43 full-time employees to writing at least 26 new rules.
“It’s not 100 percent what I envisioned, but it’s a start,” Orcutt said. “It gets the ball rolling in the right direction and continues the discussion over what is and what is not an essential function of government.”
A Cold Day in Hell
And the state’s biggest business organizations for once were singing the governor’s praises. Over the last few weeks they’d been getting nothing but bad news from state government. Next year business faces a nearly 40 percent increase in unemployment insurance taxes, a 12 percent increase in workers’ comp taxes, and an increase in the state minimum wage. You don’t often hear unanimous and unstinting praise for the governor from the business camp – all the more reason to get it on the record.
n Steve Mullin, President and CEO of the Washington Roundtable: “It’s a very positive development. It’s a recognition that the governor understands the problems facing job creators, and I hope it is just the start of a series of policy changes that will encourage employers to hire people.”
n Jocelyn McCabe, spokeswoman for the Association of Washington Business: “We’ve looked at it and we believe it’s positive. It means a greater level of certainty for small business. Anything that puts more focus on business and job creation is a good thing.”
n Patrick Connor, director of the Washington Chapter of the National Federation of Independent Business: “I have to applaud the governor for taking the first step at reducing the overregulation that has been stifling our economy. While we recognize the OFM guidance is broad enough you could drive a truck through it, it’s at least moving us in the right direction, freeling employers to focus on the bottom line instead of spending scarce resources complying with new rules.”
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