Thursday, July 25, 2013

ADMINISTRATIVE AGENCIES, PART 1--THE REGULATED STATE

Administrative agencies, and their dictates, permeate all aspects of our lives in the United States today. In reality, their regulations govern our activities more extensively than statutes and court decisions, including the water we drink, the waste we create, the air we breathe, the food we eat, the medications we take, the houses we live in, the cars we drive, the energy we use, etc.

Looking at one small area--drinking water, for example--consider how broad federal and state EPA and similar agency regulatory jurisdiction is. These agencies regulate and allocate sources of water, composition of water, treatment of water, distribution of water and usage of water, and their rules affect the availability and cost of water service.

These agencies exist at all levels of government. They not only promulgate regulations, but they also enforce them by granting or withholding permits, by filing and adjudication claims for violation of regulations in trial-type hearings, and by assessing fines and other penalties for violations. Some have asserted that agencies can be both prosecutor and judge at the same time.

Administrative agency rules and rulings tend to reflect the policies and politics of the executive branch of government, such as the president or governor who appoints agency commissioners. A current example can be found in the President's June 25, 2013 speech on his plans to control alleged climate change by changing the way the United States produces and uses electric energy. His plans include issuance of regulations to curb emissions from coal-fired power plants, which could result in a substantial reduction in such generation in favor of other types such as natural gas. According to the President, his plan did not need Congressional approval. Apparently, the President intends to put his policy into effect by directing USEPA to do so. He said he would direct USEPA to "put an end to the bottomless dumpling of carbon pollution from power plants." (Wall Street Journal, June 26, 2013, p. A2)

So what branch of government are administrative agencies? They seem to have some attributes of the executive, the legislative and the judicial branches but they do not belong to any of them. Are they a fourth branch of government? Are they accountable to anyone?

In the next three postings, I will explore the basis for administrative agencies, how they have changed the United States, and how the regulators can be regulated.

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