
Vol. 2 No. 22 October 29, 2001
by Guest Blogger, 7/17/2002
In This Issue
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SUBHEAD
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Right-to-Know and Information Policy
Chemical Manufacturers Issue Site Security Guidelines
Information Removed
Ashcroft Memo on FOIA Emphasizes Caution Before Disclosure
President Issues Critical Infrastructure Executive Order
Graham Commits to Greater OIRA Transparency
Nonprofit Sector
Anti-Terrorism Bill Could Impact Nonprofits
"Compassion Capital Fund" May Fund Think Tank
Charities Buried Under CACAA?
Federal Budget
"Economic Stimulus" Package: Politics As Posturing
FY 2002 Appropriations Update
Regulatory Issues
EPA Challenges DOE's Weakening of Energy Efficiency Standard
"Hard Rock" Mining Standards Rescinded
Technology
GAO Report Addresses Internet Remedy for Voter Access Problems
Correction
IRS Workplan
Reader Responses
More on RTK
SIDE BAR: Budget: Revised Surplus Numbers; FED 101
Chemical Manufacturers Issue Site Security Guidelines
The American Chemistry Council, along with the Chlorine Institute and the Synthetic Organic Chemical Manufacturers Association, issued guidelines to the U.S. chemical industry on October 23 for greater site security to prevent against terrorist attacks, years after they first raised the issue as a reason to restrict data on chemical hazards.
In 1999, the chemical manufacturers successfully convinced Congress to pass a law withholding public access to worst-case scenario data, contained in "Risk Management Plans," detailing the number of people who would be killed and injured in the event of a catastrophic accident. Yet ironically, chemical manufacturers have done very little to address site security since then. A report from the Agency for Toxic Substances and Disease Registry notes that "security at chemical plants ranged from fair to very poor" and that "security around chemical transportation assets ranged from poor to non-existent." (This report has been removed from the government's web pages in the wake of September 11, even though it does not reference specific facilities, but is available
HREF="http://www.mapcruzin.com/scruztri/docs/cep1118992.htm">a private, non-governmental site.)
Why have the chemical manufacturers waited until now to address site security? Perhaps it says something about how seriously they took their own arguments all along. Instead, the chemical manufacturers have seemed to be chiefly motivated by a desire to restrict information that might prove embarrassing and might force them to take corrective actions -- exactly why disclosure of the information was required in the first place. For instance, the chemical manufacturers argued against disclosing the worst-case scenario data long before the issue of terrorism was even raised. And who first raised the terrorist possibility? Not law enforcement. It was the chemical manufacturers, searching for a new argument.
Now this argument is proving even more successful. In the aftermath of
September 11, the Environmental Protection Agency (EPA) decided to remove from its web site all information contained in the Risk Management Plans (RMP) (not simply, the worst case scenario data, which has always been withheld), again citing the terrorist threat -- a move strongly backed by the chemical manufacturers. Yet during the debate over the worst-case scenario data, both the FBI and Congress decided that disclosure through the Internet of the remainder of the RMP information presented no unique increased threats of terrorism, making EPA's decision to remove the entire RMP all the more startling.
Moreover, it should be pointed out that terrorists do not need the detailed data from EPA's web site (which, by the way, can still be viewed in cached form on any number of private search engines) to carry out a chemical attack. Chemical facilities cannot be hidden. Driving down the New Jersey Turnpike, for instance, one can see dozens of them. Moreover, chemical facilities, like most other enterprises, are listed in the phone book. It would be very easy to match plant locations with census data to figure out where to accomplish maximum damage. Or you could do a simple Lexis-Nexis search for news stories. Most large chemical plants are covered extensively in the local press. These stories are readily available, and would allow you to easily determine the largest plants in the most populated areas. Research libraries also contain extensive information on chemical facilities, as do the industry's own trade publications. Or if you prefer, you could simply buy these hazardous chemicals yourself -- anonymously, as is allowed (and as Timothy McVeigh did) -- and concoct your own chemical disaster wherever you'd like. None of this is very complicated or newly divulged.
It is simply naive to believe that restricting access to chemical information, as EPA has chosen to do, actually reduces the risks associated with living near a chemical facility. We must begin to address the risks themselves. For this reason, it is encouraging that the chemical manufacturers are finally taking some action to address site security.
Along these lines, the Justice Department should complete
HREF="/ombwatcher/ombw20010917.html#chm">its long overdue study of chemical site security, as mandated by Congress.
Yet site security is just one piece of the puzzle. Facilities should move to safer, substitute chemicals, stored in smaller, safer volumes. This has already occurred to a great degree in New Jersey; yet unfortunately, most other states remain far behind in this effort. Moreover, emergency responders, such as fire fighters, need greater resources and training to deal with potential disasters. The public would be well served if the debate shifted to addressing the actual problem -- chemical hazards -- rather than what information to restrict, which only invites complacency and leaves the public in the dark.
Even in the absence of terrorism, chemical plants have always posed a major threat to the surrounding communities, often with those living in danger completely unaware. Between 1987 and 1996, the Chemical Safety and Hazard Investigation Board reported that there were over 600,000 chemical "incidents" in the United States. Not all of these incidents result in tragedy, but each has the potential, and many do. Each year, thousands are injured in chemical accidents, and about 150 are killed. Citizens and community groups should take this opportunity to find out about the dangers in their communities and work with local plants to reduce risks. The first step in this process is giving the public information about the risks they face.
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Information Removed
Following the tragic attacks of September 11, federal agencies have been busy removing information from their web sites that could potentially be used by terrorists. OMB Watch has been keeping an inventory of information, updated on an ongoing basis, that we know has been removed. This list is not comprehensive; it's just what has been reported to us. Unfortunately, government agencies are keeping no such inventory themselves. Accordingly, please send us a note at ombwatch@ombwatch.org if you know of information that has been removed, but is not on this list.
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Ashcroft Memo on FOIA Emphasizes Caution Before Disclosure
In a memo dated October 12, 2001, Attorney General John D. Ashcroft issued a new policy
statement, on behalf of the Bush Administration, directing federal agency heads to exercise "full and deliberate consideration of the institutional, commercial, and personal privacy interests" before disclosing information, and careful consideration of threats to national security and the effectiveness of law enforcement in responding to FOIA requests in releasing records to journalists and others under provisions of the Freedom of Information Act (FOIA).The policy supercedes a 1993 memorandum issued by Attorney General Janet Reno, which ordered that agencies should make allowable discretionary disclosures except where there was demonstrable harm. Ashcroft promised the full backing of the Department of Justice to those agencies that legitimately decide to turn down requests made under FOIA.
FOIA has frequently been the vehicle for journalists, historians, and others to reveal government wrongdoing and waste and abuse, as well as a mechanism to gain a better understanding of the context of
agency decision making.
The new guidelines can be found on the Justice Department's website.
For purposes of comparison, see Attorney General Reno's 1993 memorandum.
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President Issues Critical Infrastructure Executive Order
Executive Order 13231, published in the October 18 Federal Register, creates a President's Critical Infrastructure Protection Board and extensive committee apparatus to protect the nation's critical information systems.
Richard A. Clarke, Bush's cybersecurity adviser, will chair the newly created board which, under the order, has responsibility to "coordinate and have cognizance of federal efforts and programs that relate to protection of information systems." Office of Management and Budget (OMB) director Mitchell E. Daniels, Jr. will have overall responsibility for government-wide security policy and implementation. The order also gives Defense Secretary Donald Rumsfeld and CIA director George Tenet the responsibility for their own infrastructure protection policies and standards.
Board members, besides Daniels, will include Attorney General John Ashcroft and top-ranking officials of cabinet departments and independent agencies. The order does not abolish existing groups such as the Critical Infrastructure Assurance Office, the Federal Computer Incident Response Center or the National Infrastructure Protection Center, but the board will assume general leadership of all of them.
Among the Board's responsibilities is "outreach to the private sector and State and Local Governments" as well as "communities and representatives from academia and other relevant elements of society."
The Order also establishes a National Infrastructure Advisory Council to provide the President advice on the security of information systems for critical infrastructure supporting banking and finance, transportation, energy, manufacturing, and emergency government services.
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Graham Commits to Greater OIRA Transparency
John Graham, administrator of OMB's Office of Information and Regulatory Affairs (OIRA), deserves praise for new measures -- announced October 18 -- to increase transparency at his agency, which reviews (and can possibly reject) new agency regulations and information collections.
As indicated in a press release and a
HREF="http://www.whitehouse.gov/omb/inforeg/oira_disclosure_memo-b.html">memo to OIRA staff, Graham intends to disseminate useful information through the Internet that will help the public better understand and evaluate OIRA's activities.
"This is truly a breakthrough for OIRA," said Gary D. Bass, OMB Watch's executive director. "In the past, OIRA has fiercely resisted transparency -- which is ironic considering its oversight authority over government information policy. What sunshine exists at OIRA has been mostly forced on the office, first by congressional pressure and then by executive order. Graham's actions are refreshing in light of this history, and deserving of our praise."
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Anti-Terrorism Bill Could Impact Nonprofits
The USA PATRIOT Act" (H.R. 3162) could pose problems for nonprofits, especially those that advocate changes in US foreign policy or provide social services to individuals that become targets of government investigations. The central problem is a vague, overbroad definition of a new crime, "domestic terrorism." (The attacks of September 11 are crimes under current law, making this provision unnecessary.) In addition, greatly expanded surveillance powers can be invoked under a lowered threshold, only requiring an assertion that information is relevant to a foreign intelligence investigation.
Last week Congress rushed the bill through in a closed process that took place while Congressional offices were shut down for anthrax testing. President Bush signed the bill on Friday October 26. The House passed the bill 352-66 on October 24 and the Senate approved it the next day 98-1, after three hours of debate. Sen. Russell Feingold (D-WI) was the only Senator to vote against the bill, saying it "does not strike the right balance between civil liberties and security." There was no conference, since lawmakers worked out their differences in closed-door sessions prior to the votes. The process was so rushed that a final copy of the bill was not available to the public at the time the votes were taken.
"Domestic terrorism" is defined in Section 802 as criminal activities within the United States that are dangerous to human life and appear to be intended to intimidate civilians, influence the policy of a government by intimidation or coercion or affect government operations by mass destruction, assassination, or kidnapping. Broadly interpreted this definition could be applied to acts of political protest by any group whose tactics involve minor violations of state and local law or are engaging in civil disobedience. The crime of "domestic terrorism" carries stiff penalties, and anyone providing material support to such a group or its members, including "harboring," also can be charged with a criminal offense. Material assistance includes expert advice, assistance or training. Assets of terrorist organizations can be seized and forfeited.
Nonprofits could also be impacted with Section 215, which allows seizure of records, computers and other items for "intelligence" investigation purposes, without requiring probable cause that a crime is involved. This provision applies whether or not the group is the subject of the investigation. Although the investigation cannot be "conducted solely upon the basis of activities protected by the first amendment to the Constitution," free speech activities can be the primary factor, as long as some other reason is cited. Judges do not have discretion to deny applications for orders for seizure of records and other items if they conform to the act, and the orders are issued without notice. The order cannot disclose that it is issued for an investigation of international terrorism or clandestine intelligence activities. In addition, people involved in turning over the records must keep their actions secret.
Congress is requiring the Attorney General to report all requests for the production of tangible things to the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate on a semiannual basis. The Committees on the Judiciary of the House and Senate will also get reports every six months on the number of applications made for orders approving requests for the production of tangible things and the number that are either granted, modified, or denied.
The expanded surveillance powers also allow secret searches of offices, wiretaps on phones and cell phones, and interception of electronic message information (except the content of e mail). The surveillance portions of the bill will sunset on December 31, 2005, except for ongoing investigations on incidents occurring before that date. In the meantime, government officials that intentionally use surveillance that is not authorized by the act can be disciplined, and the subject of the search can sue the government. However, these remedies are not likely to be useful in most instances, since the law forbids phone and Internet providers and custodians of records from informing people they are the objects of surveillance by federal authorities.
The Attorney General or Secretary of State could designate a group as a terrorist organization, making payment of dues by non-citizens a deportable offense and invoking authority to freeze financial accounts. There are no procedural safeguards to protect against a wrongful designation.
The ACLU has issued a statement saying, "This broad new authority threatens to usher in a new age of investigation of Americans based on their political activities." However, they do not plan to take immediate legal action, but will wait to see how the law is implemented.
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"Compassion Capital Fund" May Fund Think Tank
The Senate version of the Departments of Labor, Health and Human Services and Education appropriations contains money for the Bush Administration's "Compassion Capital Fund," which could grant money to faith-based organizations for service provision. The bill (S. 1536), which is scheduled to be taken up on Tuesday, contains a provision for $89 million for the fund, as well as at least $33 million to be used on other faith-based programs (including "maternity group homes").
There have been reports that a large amount (over $30 million) of the "Compassion Capitol Fund" money will be used to fund studies on the efficacy of faith-based nonprofits by Public Private Ventures, a group chaired by John DiIulio, the outgoing head of the White House faith-based office. Currently, there is little or no evidence to suggest that faith-based nonprofits are any more effective than secular nonprofits. It's hard to imagine that any studies conducted by the former head of the White House Office of Faith Based and Community Initiatives would be fair and unbiased.
Despite sporadic reports of action, there is a great degree of uncertainty around the outlook for legislative action on charitable choice given the new set of challenges facing the country. Initially, the Bush administration stated that passing charitable choice legislation would still be a priority, but no action has been taken. There is broad support from the nonprofit community for the passage of charitable giving incentives that were part of the administration's original faith-based package, but any legislation that includes the direct federal funding of churches is very controversial.
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Charities Buried Under CACAA?
On October 2, 2001, Rep. Charles Bass (R-NH) introduced H.R. 2985, the American Spirit Fraud Prevention Act. On the same day, Sen. Mitch McConnell (R-KY) introduced S.1484, the Crimes Against Charitable Americans Act.
The American Spirit Act would authorize the Federal Trade Commission (FTC) to pursue twice the current level of civil penalties for fraudulent practices that capitalize upon "popular reaction to an emergency or major disaster declared by the President." Such activity would have to occur within a period of time on or between the date of the President's declaration and the one-year anniversary of the expiration date of the emergency period.
McConnell's CACAA would make solicitations for contributions to fraudulent charities -- especially in times designated by the President as either federal disasters or emergencies -- a federal crime by amending Chapter 47 Title 18 of the United States Code, and telemarketing solicitation for fraudulent charitable purposes subject to the Telemarketing and Consumer Fraud and Abuse Prevention Act. Fraudulent charitable telemarketing offenders would also face a 10-year prison sentence for activity conducted in tandem with other federal crimes.
CACAA would also require the FTC to include charitable solicitations under its rules regarding telemarketing and to share information with state and local officials to prosecute violators of those rules. Last, CACAA would increase the federal penalty against those individuals or groups soliciting or collecting donations while posing as agents of the American Red Cross from one to five years jail time in addition to restitution to those directly and indirectly harmed by such acts. (Federal protections for the American Red Cross are due mainly to its historic service to the nation in times of crises, demonstrated by its leadership in the wake of September 11.)
While stronger rules and laws regarding charitable solicitations can help to reinforce public confidence in giving to relief and human services, there are concerns with both pieces of legislation.
It is unclear whether the estimated $1.5 billion in annual revenue from donations to fraudulent charitable activity cited by McConnell in his October 2 press statement on S. 1484 is both a reliable figure and reflects the acts of smaller individual activity versus large-scale organized efforts. If the rationale for such scrutiny is based on an actual heightened vulnerability to the national conscience and spirit to give during times of national emergencies, it can also be argued that the propensity for fraudulent activity is persistent at all times of the year. There is also a distinction to be drawn between collection of donations and the mishandling of funds by fraudulent and legitimate charities. There may be times when legitimate charities are established quickly without coordinating their activities with recipient charities, and rules are unclear as to which activity is prohibited.
While it is widely assumed that there is already federal authority to aggressively monitor and prosecute fraudulent charitable solicitations through the FTC, it currently only collects complaints against charities into the Consumer Sentinel database, a public-nonprofit collaboration since 1997, among the FTC, Australian Competition and Consumer Commission, the Better Business Bureaus, Canada's PhoneBusters, Federal Bureau of Investigation, National Association of Attorneys General, National Consumers League, US Postal Inspection Service, and the US Secret Service. Information from Consumer Sentinel, including complaints from the public, is made available only to law enforcement and regulatory bodies at the federal, state, and local levels, as well as to charity monitoring bodies.
Increased authority granted to the FTC for setting out the rules under which state and local jurisdictions and regulatory actors must monitor and prosecute activities will require more consistency in the application of existing and emerging federal and state laws covering solicitations, including those dealing with electronic records and online transactions.
H.R. 2985 was reported out of the House Energy and Commerce Committee on
October 11 by voice vote without any amendments. S.1484 is currently in the Senate Judiciary Committee. OMB Watch will continue to monitor these bills for further developments.
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Opening Move In "Economic Stimulus" Package: Politics As Posturing
By a slim and primarily party line vote (216 to 214) the House passed its "economic stimulus package" (H.R. 3090) on Wednesday, October 24. The Joint Committee on Taxation (JCT) has an excellent summary of the "Economic Security and Recovery Act of 2001." The bill violates not just one or two, but all five of the principles to guide the design of an economic stimulus package previously agreed upon by party leaders from both houses earlier this month:
- Proposals should sunset within one year to the extent practicable. The House-passed bill permanently repeals the corporate Alternative Minimum Tax (AMT) and allows retroactive refunds from 1986 to the present. It permanently defers corporate taxes on certain income earned overseas (primarily benefiting multinational corporations). It includes provisions speeding up tax write-offs for business equipment, expanding the time when current tax "losses" can be used to apply for a refund of previously paid taxes, and extending individual AMT tax adjustments, currently slated to expire in 2004. The bill also permanently reduces capital gains taxes from 20% to 18%. Finally, the bill accelerates the cut in the 28% individual income tax bracket to 25% so that it will take effect in 2002, rather than in 2006.
- A substantial portion of the fiscal impact should be felt within six months. The bill does "speed up" the transfer of $9 billion in federal unemployment insurance trust funds that had already been approved for state unemployment accounts. However, the amount is woefully inadequate and this measure likely can't be put into action by the states until next year, providing little if any relief right now.
- The package should cost approximately $60 billion. According to the JCT analysis, the House-passed bill is estimated to cost $100 billion in FY 2002, and $159 billion over the next ten years.
- Stimulus dollars should go to those most likely to spend them, and to those most vulnerable in an economic downturn. 95% of the cost of the House-passed bill is for tax cuts. The tax cuts overwhelmingly benefit corporations and wealthier taxpayers. The House-passed bill does provide for tax rebates to the 35 million Americans who filed income taxes but did not qualify for the earlier rebate checks. This is a useful provision, since low-income recipients are more likely to spend the rebate. The bill also allocates $3 billion in grants to states for health care coverage to the unemployed, an amount which is completely inadequate, especially given the severe budget difficulties being experienced by the states.
