1. The New Environmental Regulation Written by Daniel J. Fiorino Cooper Reaves Danielle Hughes John Gammons POL 368: Environmental Politics 7 December, 2007 www.bayareaallaince.org

2. Outline “It is time for a transition from an old to a new regulation.” - Daniel Fiorino History of US Environmental RegulationHistory of US Environmental Regulation –How we got here –Problems with the current system Trends in Industry and GovernmentTrends in Industry and Government –Changes in Industry –Governmental reform The New RegulationThe New Regulation –Drawing from lessons –The new system of environmental regulation

3. Why does our current regulation look the way it does? Our Political Institutions and Culture have shaped our current regulationsOur Political Institutions and Culture have shaped our current regulations –Fragmented Power –Incremental Changes in Policy –Belief in Limited State Power –Our Highly Judicial Nature The Historical CircumstancesThe Historical Circumstances –Belief in Regulatory Capture – Theory in 1960’s –Belief that Business and Industry are at Odds with environmental goals –Held Belief in Bureaucratic Solutions

4. History of Environmental Regulation Realization that an entirely regulated strategy fails to address new and upcoming environmental problemsRealization that an entirely regulated strategy fails to address new and upcoming environmental problems –The Establishment of Regulation 1970-19831970-1983 –The Reassessment Era 1983-19931983-1993 –The Reinvention Era 1993-20011993-2001

5. An Analysis of Current Environmental Regulation Some accomplishments and results, but much work to be doneSome accomplishments and results, but much work to be done –Ability to solve environmental problems has increased –Pollution has declined –Regulation still ineffective Additional problems with the Current RegulationAdditional problems with the Current Regulation –Too compliance oriented Rigid, Firm, and LegalisticRigid, Firm, and Legalistic –Reduces Innovation –Too Costly, Ineffective and Inefficient –Highly Fragmented –Implementation Problems

6. Take Home Lessons for the Analysis of the Current Environmental Regulation 1.The Current Regulation has provided numerous benefits, but continues to fail at producing adequate results on a number of levels 2.Poorly suited to the dynamic and new environmental problems we see today. 3.Inappropriate Regulation for complex second and third generation environmental problems such as indoor air pollution, global warming, non-point sources, habitat and biodiversity loss.

7. The Greening of Industry The “Greening” ProcessThe “Greening” Process –Customer pressure & regulatory standards lead to changes –Increasing costs lead to tactful thinking –Realization it pays not to pollute –Adoption of proactive environmental strategies Why would a firm do this?Why would a firm do this? –Public Image –Customer/investor pressures –Efficiency –Corporate values –Increase shareholder value

8. Governmental Changes A new regulation is neededA new regulation is needed –Project Excellence and Leadership (XL) Flexibility results in improvementsFlexibility results in improvements –Development of new technology and strategy Negotiated agreements are win-winNegotiated agreements are win-win –Flexible and combined permits –National Environmental Performance Track Reduced monitoring for top performers increases efficiencyReduced monitoring for top performers increases efficiency –Provides incentive

9. Take Home Lessons Greening has clearly shown that factors other than regulation play a role in environmental effortsGreening has clearly shown that factors other than regulation play a role in environmental efforts Flexibility and negotiation allow for increased efficiency and decreased cost, a benefit to both the environment and businessFlexibility and negotiation allow for increased efficiency and decreased cost, a benefit to both the environment and business Regulation is essential for environmental changes in business to occur on a large scaleRegulation is essential for environmental changes in business to occur on a large scale

10. Ideas and Experiences: The Big Picture Social Science WritingsSocial Science Writings – Sources of conceptual ideals and new patterns of governance Innovations in American StatesInnovations in American States –Sharing of authority among state and federal government allows for new ideas and experiences but also adds complexity to creating new regulations Civic EnvironmentalismCivic Environmentalism –Cooperation among government, business, environmental, and community leaders to find new solutions to environmental problems The NetherlandsThe Netherlands –Model for industrial nations in dealing with environmental problems through cooperation and incentives

11. Goals for the New Regulation 1.Establish and maintain legally enforceable, demanding performance standards 2.Differentiate among regulated firms based on past and expected future performance 3.Incorporate mechanisms and incentives that promote continuous improvements in performance 4.Build a capacity for policy learning 5.Measure performance at all levels 6.Create relationships and mechanisms based on TRUST

12. Take Home Lessons A more dynamic and adaptive approach creates capacities for learning, sharing responsibility, and continuous improvementsA more dynamic and adaptive approach creates capacities for learning, sharing responsibility, and continuous improvements A shift from current command and control to government focusing on creating incentives and procedures will encourage actors to continually evaluate and improve their performanceA shift from current command and control to government focusing on creating incentives and procedures will encourage actors to continually evaluate and improve their performance

13. Closing Thoughts Closing Thoughts After reviewing the history of US environmental regulation and looking at the problems of the current system, it is clear that a new environmental regulation is necessary. The system proposed by Fiorino is one of the alternatives that should be considered in the process of developing new environmental regulation. After reviewing the history of US environmental regulation and looking at the problems of the current system, it is clear that a new environmental regulation is necessary. The system proposed by Fiorino is one of the alternatives that should be considered in the process of developing new environmental regulation.

14. Discussion Old Regulation –Command & Control New Regulation –Cooperation How would government react to this? Environmental groups? Business? A new regulation on CO 2 emissions is being implemented. What would this regulation involve under the old regulation? Under the new regulation?