“Our state’s environmental protection policies are crucially important to North Carolina’s quality of life and business climate; therefore, the process that produces them is important to the North Carolina Chamber. Our Chamber wants to make sure that all new initiatives are of the highest quality, lack confusion, and truly accomplish their intended purpose. Unfortunately, because the current environmental rulemaking process is so complex, the business community too often has to turn to the General Assembly to deal with unreasonable rules and regulations. That’s why our Chamber and many of our business allies believe it is time to look seriously at reforming the state’s environmental rulemaking process.”
-- North Carolina Chamber President and CEO Lew Ebert
Chamber Proposes Comprehensive Reform
Environmental Rulemaking Process
North Carolina’s system of environmental rulemaking has become increasingly complex and unreasonable. As a result, the cohesion and logic of rules for companies and citizens are not always easy to grasp. This hampers compliance and unnecessarily creates time-consuming and expensive burdens for North Carolina employers.
Environmental policymaking in our state is currently spread across multiple boards, commissions, and councils – most, but not all, of which reside in the Department of Environment and Natural Resources (DENR) and operate part-time. These statutory boards, councils, commissions and committees, with powers and functions ranging from merely advisory to legislative and even quasi-judicial, are comprised of private-sector citizen volunteers appointed by the Governor, the General Assembly, or some combination of the Governor, General Assembly and some other appointing entity.
In today’s world, environmental policymaking should not be a part-time job. The science, technology and the law of environmental protection is too complex for part-time citizen boards and commissions. They lack the time and expertise to review and understand all of the information required to adequately consider and shepherd the issues that come before them.
Further, in rulemaking proceedings and contested case hearings, these part-time citizen boards and commissions are dependent on agency staff for information. This is the same agency staff that is proposing a rule or is a party in the contested case. This lack of independence can call into question their ability to make a fair and impartial decision.
As we approach the 2009 legislative session, the North Carolina Chamber wants to improve the environmental rulemaking process in our state. Our intentions center on changes that will simplify the current framework and address broad industry concerns regarding the complexity and cost of the current rulemaking process. In short, our work will be focused on process, not function. We will work to change the “how” of government, not the “what.” It’s not a question so much about environmental regulations, but instead about how best to achieve the most appropriate solutions for an exceptional quality of life and globally competitive business climate in the future.
Vital Components of Streamlined Rulemaking Framework
Consolidation of the state’s environmental policymaking and quasi-judicial functions into one commission comprised of full-time members with its own staff would greatly enhance the efficiency, objectivity, and fairness of environmental rulemaking and regulation in North Carolina. Such a commission could view environmental policies holistically, coordinating environmental rulemaking across a broad range of programs.
- Commission of Full-time Experts
Understanding the complexities of environmental regulation is not easily done, a task that cannot be accomplished by the current system of various part-time commissions with rulemaking authority. North Carolina needs to develop tailored and cost-effective rules based on sound science and good information.
Effective environmental rulemaking requires a full-time commission with a fully equipped staff independent of the state agency proposing new rules. In order to have an effective regulatory program, provide for coordination of regulations, maximize consultation, and resolve potential conflicts at an early stage, we must put in place a full-time commission. It’s the best way to ensure that new regulations promote effective, efficient and balanced environmental policies.
- Consolidation of Rulemaking Authority
The number and overlap of environmental programs across state government has created an inefficient system. There is duplication of effort among multiple agencies, competition, lack of program integration, and public confusion. Consider the protection of aquatic habitat, for example. It is currently the responsibility of the Environmental Management Commission, the Wildlife Resources Commission, the Marine Fisheries Commission, the Sedimentation Control Commission, the Coastal Resources Commission, the Clean Water Management Trust Fund, the North Carolina Ecosystem Enhancement Program, and – to a lesser extent – a host of other programs.
Consolidation of North Carolina’s environmental rulemaking into one full-time commission would significantly enhance the efficiency, objectivity and fairness of the process and regulations in our state. The current complex environmental rulemaking process with programs dispersed among many different agencies, sub-agencies and offices has led to regulations that are inconsistent, incompatible, or duplicative.
An independent regulatory appeals process is also a key part of consolidation of rulemaking authority. A full-time consolidated commission with its own staff could act as a court of competent jurisdiction to adjudicate appeals of environmental permit and enforcement decisions by regulatory agencies in a fair and impartial manner.
Working to Create a Better System that Produces Better Rules
A number of recent actions by the state Environmental Management Commission have been controversial enough to be referred to the General Assembly, where concerns of interested parties have required that the rules be overturned or amended. While oversight of the rulemaking process continues to be an important function of the General Assembly, if they are constantly having to write the rules themselves, it is an indication that the process is not working well.
Improving the efficiency and effectiveness of environmental rulemaking is a priority of the North Carolina Chamber that will result in rules that are more clear, consistent, compatible and reasonable. Our Chamber looks forward to working with state leaders and other stakeholders to make North Carolina’s environmental rulemaking process better for the future.
Chamber’s 1st Annual Tax Conference Nov. 13th
The North Carolina Chamber will be hosting its 1st Annual Tax Conference on November 13th, 2008 at the Harris Conference Center in Charlotte. State and federal tax experts will address a number of tax issues most vital to North Carolina businesses, including an overview of recent tax changes made by the General Assembly and upcoming tax challenges that need to be addressed. Click here to register and find out more information about this conference.
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