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EPA’s Playbook Unveiled: A Story of Fraud, Deceit and Secret Science

Part 1 :: How This Phony CIA Agent Pulled Off a ‘Scam’ to Impose Environmental Regulations on Americans

Kevin Mooney / @KevinMooneyDC / February 10 2015

Remember the EPA bureaucrat who got caught receiving $900,000 in pay without working because he claimed he also was employed by the CIA?

According to a report from the Senate Environment and Public Works Committee, the man, former climate policy expert John Beale, “retired” when questions arose about his spotty attendance and expense records.

Only he didn’t file his retirement paperwork and continued to draw an active-duty salary for some time after. His boss at the time in the EPA’s Office of Air and Radiation, now-EPA Administrator Gina McCarthy, knew this for about seven months and did nothing to stop it.

>>> This is the first of a two-part series.

“On March 29, 2012, an OAR official raised concerns about Beale’s retirement when he informed McCarthy that Beale was still on payroll,” the report stated.

“Despite being aware of the fact that one of her subordinates was collecting a paycheck without providing any work product, this arrangement continued for seven more months before McCarthy ever contacted Beale.”

In December 2012, McCarthy met with Beale for the first time in nearly 15 months, and he informed her that he was no longer planning on retiring. Two more months passed before concerns with Beale were officially reported to the inspector general. On April 30, 2013, McCarthy had cause to fire Beale, but instead elected to allow him to voluntarily retire with full benefits.

Liz Purchia, press secretary for McCarthy, told The Daily Signal in an email: “[McCarthy] believed he was retired, and [that] was the reason he was not in the office.”

How Did He Do It?

According to the Senate report, Beale’s career at the EPA was marked by relentless dishonesty on matters large and small and a cadre of supervisors who, like McCarthy apparently in the matter of his retirement pay, enabled his self-dealing behaviors.

He claimed an injury so he could ride first-class on flights for government business, which in one case drove the ticket price from $1,000 to $14,000. He forged expense forms, claimed to be away on CIA business for 2½ years worth of work days and flew to Los Angeles and stayed in posh hotels on the EPA’s tab for family visits that had nothing to do with agency work.

Few even attempted to question Beale’s frequent absences, enormous expense reports, exorbitant salary—he retired as the agency’s highest-paid employee—and lack of accountability. He was personally popular, well-connected and believed to be among the agency’s most effective employees.

But Beale’s greatest deception has nothing to do with first-class flights and fancy hotels.

Beale, who is serving a 32-month sentence in the federal prison in Cumberland, Md., for pleading guilty to felony theft of government property, spent most of his career devising regulations under the Clean Air Act that are justified by science few have seen and no one has peer-reviewed, according to the Senate report.

“We should all question how John Beale became a senior official at the EPA and played a major role in long-lasting policy decisions while pulling off a scam I thought only Hollywood could make up,” Sen. David Vitter, R-La., told The Daily Signal.

“But this egregious case helped us successfully reveal how EPA has wasted taxpayer resources and mismanagement in a manner that is far too common.”

John Beale and the Clean Air Act

Beale’s penchant for bilking the EPA out of money eroded the trust Americans place in their government and EPA employees place in their superiors and coworkers. But it was the role he played beginning in the mid-1990s in creating and implementing regulations pursuant to Clean Air Act that continues to reverberate and linger at the expense of the American people.

Staffers with the Senate Environment and Public Works Committee set out last year to probe the relationship between “sue-and-settle” arrangements and evidence they had uncovered that pointed to the manipulation of scientific data.

What they discovered, as detailed in their report, titled “EPA’s Playbook Unveiled: A Story of Fraud, Deceit and Secret Science,” was how agency officials concealed and misled about the science that underpinned its most significant initiatives and silenced and marginalized their own internal watchdog offices, which enabled the agency to greatly overstate the benefits and underestimate the costs of its Clean Air Act rulemaking.

Under the Clean Air Act, the EPA is required to create National Ambient Air Quality Standards for particulate matter and ozone. The American Lung Association sought to jumpstart this process with a so-called “sue-and-settle” suit filed in 1995.

The idea behind “sue-and-settle” is for friendly plaintiffs to sue a government agency, work out agreeable terms—perhaps even beforehand—and emerge with a court order to implement rules or regulations that could not have been achieved through the democratic or even regulatory process.

The American Lung Association suit resulted in a consent decree that called for the EPA to propose final standards for particulate matter by Nov. 29, 1996, and issue the standards by July 19, 1997. The decree set no deadline for ozone standards because they had been reviewed in 1993 and were not up for another review until 1998.

But Beale and Robert Brenner, his best friend and erstwhile boss, made what documents called a “policy call” and seized on the urgency to produce new particulate matter standards to rush through a new ozone standard as well.

This put the agency in the position of advancing two regulatory standards simultaneously, which it had never done. And it put the agency and those charged with reviewing such regulations, including the Clean Air Scientific Advisory Committee, under impossible deadline pressure.

Why Beale Was Emboldened

The EPA admitted in court papers filed pursuant to the American Lung Association lawsuit that any period shorter than Dec. 1, 1998, for promulgation of the particulate matter standard “would require the EPA to reach conclusions on scientific and policy issues with enormous consequences for society before it has had an adequate opportunity to collect and evaluate pertinent scientific data” and that further time was needed to reach a “sound and scientifically supportable decision.”

Beale had no time for that. He needed an ally to move things along and found one in Carol Browner, the Al Gore acolyte and former staffer who served as administrator of the EPA through both terms of the Clinton administration. Beale formed a close relationship with her and met with her multiple times per week to discuss his progress on this.

The urgency, as well as his influence with the boss and an unwillingness of others at EPA to block him, gave Beale “the mechanism he needed to ignore opposition to the standards.”

Beale’s efforts to include ozone in the new regulations proved expensive for Americans.

The EPA estimated the cost at $2.5 billion, but its estimate was based on receiving the full benefits of cutting ozone but achieving only a partial attainment of the standards, which the law did not permit. The Council of Economic Advisers also measured the cost and found it to be $60 billion—24 times the EPA estimate.

Indeed, as was the case with him getting away with not showing up for work and submitting exorbitant expense reports, succeeding in this regulatory sleight of hand only emboldened Beale to go further.

‘Hidden and Unverified’

That first round of standards, which regulated coarse particulate matter, such as pollen and dust, became known as PM10. But Beale wanted more.

In 1997, with the backing of his superiors, he sought to engage the agency in regulating fine particulate matter—particles a fourth the size of those regulated under PM10 and too small to be visible to the human eye.

But to enact these regulations, EPA first had to produce scientific research that established these smaller particles posed a threat to humans.

To accomplish this, Beale pulled data from two controversial studies—the Harvard Six Cities Study and an American Cancer Society study known as ACSII. The data was not trusted. The air advisory committee pointed out it had not been peer-reviewed, and others indicated Beale was exaggerating the findings for his desired result.

Further undermining those studies’ credibility is that even now, 20 years later, EPA still refuses to release the data, despite McCarthy’s promise to do so during her confirmation hearings.

Though Beal is out of the picture and in prison, his rulemaking techniques he employed to advance the 1997 National Ambient Air Quality Standards for ozone and particulate matter remain firmly entrenched.

“This effort codified EPA’s now customary practice of using fine particulates (PM2.5) to inflate the benefits of nearly all regulations issued under the Clean Air Act,” the Senate report concludes. “Yet the science supporting nearly all of EPA’s alleged benefits remain hidden and unverified.”

Part 2 :: EPA Under Fire for Concealing Controversial Scientific Data, Silencing Skeptics

Kevin Mooney / @KevinMooneyDC / February 11, 2015

For more than 15 years, the Environmental Protection Agency has resisted releasing data from two key studies to the general public and members of Congress. Government regulators used those studies to craft some of the most expensive environmental rules in U.S. history.

When skeptics within the federal government questioned and challenged the integrity of the studies—the Harvard Six Cities Study and an American Cancer Society study known as ACS II—they were silenced and muzzled.

That’s when the Republican staff on the Senate Environment and Public Works Committee stepped in to shine light on the situation, revealing the scope of the scandal in in a report titled, “EPA’s Playbook Unveiled: A Story of Fraud, Deceit and Secret Science.”

>>> This is the second of a two-part series. Read the first part: How This Phony CIA Agent Pulled Off a ‘Scam’ to Impose Environmental Regulations on Americans

The key player in the scandal is John Beale, who was sentenced to serve 32 months in federal prison on Dec. 18, 2013, after pleading guilty to stealing almost $900,000 from U.S. taxpayers.

It was in 1994 that Beale first began to beguile EPA employees and supervisors into believing he worked for the CIA. When he failed to report for work, Beale would enter “D.O. Oversight” on his calendar, which meant he was a director of operations responsible for covert operations at the CIA.

But it was the role Beale played beginning in the mid-1990s in creating and implementing regulations pursuant to Clean Air Act that continues to reverberate and linger at the expense of the American people.

Two Allies at the EPA

Over the past decade, evidence has emerged to reveal the Six Cities and ACS II studies did not support enacting one of the most controversial, far-reaching and expensive regulations in American history. Otherwise, the agency would have provided access to the data without a fight.

The political appointees who led the EPA at the time feared the consequences of enacting such a regulation without being able to offer scientific evidence of its necessity.

Beale needed an ally. He needed someone to explain the problems with the research and the reasons the data could not be released. Someone who could run interference with various actors in Washington. He found one in top EPA official Robert Brenner.

Brenner had recruited Beale, his former Princeton University classmate, to the EPA as a full-time employee in 1989.

Brenner, then deputy director of the EPA’s Office of Policy Analysis and Review within the Office of Air and Radiation, hired his friend despite Beale’s lack of legislative or environmental policy background. He also placed Beale in the highest pay scale for general service employees—a move typically reserved for those with extensive experience.

He then allowed Beale to collect retention bonuses, which go to only the most highly qualified employees to keep them from jumping ship—an unlikely scenario for a man who had picked apples and worked in a small-time law firm in Minnesota before joining the agency. Employees are supposed to be eligible for such bonuses—potentially worth as much as a fourth of the employee’s annual salary—for only three years, but Brenner helped Beale receive them for more than 10.

The two would work together at the EPA for 25 years—during which time the Office of Policy Analysis and Review would grow “in both scope and influence” as Beale and Brenner worked in tandem to muzzle dissenting voices within the White House Office of Information and Regulatory Affairs (OIRA) and the EPA’s Clean Air Scientific Advisory Committee.

‘Beale Memo’ Details Regulatory Agenda

At the crux of their agenda—the initiative that would build their legend within the agency—was implementation of a fine particle standard regulating air pollution.

The formula had been set with the American Lung Association sue-and-settle agreement and codified in a confidential document known as the “Beale Memo,” which described how Beale pressured regulatory and clean air bodies to back off criticisms of EPA rulemaking both within the agency and in correspondence with members of Congress.

The EPA attempted to conceal this document from Sen. David Vitter’s committee investigators, but a conscientious whistleblower “turned it over surreptitiously,” the report said.

The memo outlined how Beale and Brenner would work to compress the time the Office of Information and Regulatory Affairs and the voluntary Clean Air Scientific Advisory Committee had to review regulations so they could get away with using “secret science.”

The Clean Air Scientific Advisory Committee opposed from the start the move to regulate fine particulate matter. Members claimed there was no precedent or court order to establish these regulations, that research had not distinguished between dangers posed by PM 10 particles and those a fourth that size under PM 2.5, and that the PM 2.5 target was arbitrary and tied to no known science. (PM stands for particle matter, a term “for particles found in the air, including dust, dirt, soot, smoke, and liquid droplets,” according to EPA.)

Further, the committee, known as CASAC, complained it was being asked to do the work that took eight years on the previous air quality review in 18 months.

“The Beale memo is interesting in that it provides evidence of Beale’s direct role in ensuring concerns raised by other agencies, CASAC members and OIRA were not considered in the final rulemaking,” wrote Luke Bolar, spokesman for Vitter, in an email to The Daily Signal.

“While there were major concerns with the science and the cost-benefit analysis as outlined in comments filed on the rule, the Beale memo was written to push back against OIRA publicizing those concerns,” Bolar added. “They didn’t have to directly ‘blunt’ criticism, as Beale got his way through his close ties to Mary Nichols (then head of the Office of Air and Radiation) and Carol Browner (EPA administrator.”

Long-Lasting Impact

Efforts to slow Beale, Brenner and their highly charged regulations failed. As a result, today the “co-benefits” of PM 2.5 are used to justify almost the entirety of the Obama administration’s air quality initiatives even though the immediate benefits still have yet to be proven.

“There is no watchdog now inside the EPA,” laments Steve Milloy, the former editor of JunkScience.com, which has posted a fact sheet that debunks the EPA’s PM 2.5 claims. “Whatever the EPA wants it gets. The agency is allowed to run rampant. There was a time when OIRA use to have stopping power, but now it’s just ignored. OIRA has become a rubber stamp.”

This is especially true of PM 2.5, Milloy says. “There is no real world evidence” PM 2.5 has caused sudden or long-term death, he said. “The claim that PM 2.5 kills people is at the heart and soul of how the EPA is selling these regulations. But it’s a claim that’s not supported by the facts or evidence. The EPA has rigged the whole process.”

Indeed, the purported co-benefits have become the benefits, according to Vitter’s report.

“Historically, EPA used co-benefits in major rules as one of several benefits quantified to justify a rule in the RIA,” the report says. “Yet, at the beginning of the Obama administration, there was a ‘trend towards almost complete reliance on PM 2.5-related health co-benefits.’ Instead of being an ancillary benefit, EPA started using PM 2.5 co-benefits as essentially the only quantified benefit for many CAA regulations.”

The Senate report claims all but five air pollution rules crafted between 2009 and 2011 listed PM 2.5.

Lack of Transparency at EPA

The Clean Air Act requires EPA to set air quality standards to protect public health with an “adequate margin of safety.” In its review of the National Ambient Air Quality Standards, the EPA considers factors such as the nature and severity of health effects, the size of the at-risk groups affected and the science.

Several exhaustive scientific reviews prior and subsequent to the 1997 standards were conducted following open, public processes that allowed for public review and comment prior to updating the standards.

EPA press secretary Liz Purchia told The Daily Signal in an email that the process is open enough.

The National Ambient Air Quality Standards are bolstered by “sound science and legal standards,” she said, and “several exhaustive scientific reviews prior and subsequent to the 1997 standards were conducted following open, public processes that allowed for public review and comment prior to updating the standards.”

She added:

Beale’s involvement in no way undermines the rational basis for the agency’s decisions nor the integrity of the administrative process. Reducing the public’s exposure to ground-level ozone and PM protects millions of Americans from costly and dangerous illness, hospitalization, and premature death.

All that may be true, but the EPA still won’t provide the underlying data to put the matter to rest.

Vitter and his team say this is because the EPA can continue to overstate the benefits and understate the costs of federal regulations—just as Beale did in the 1990s.

“This technique has been applied over the years and burdens the American people today, as up to 80 percent of the benefits associated with all federal regulations are attributed to supposed PM 2.5 reductions,” the report states.

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The EPA Snake Pit

By Alan Caruba

Under President Obama, two women have been the director of the Environmental Protection Agency (EPA), Carol Browner, who served in the Clinton administration and was one of the “czars” Obama appointed; her acolyte Lisa Jackson, and up for the post is Gina McCarthy. Browner and Jackson went out of their way to conceal their internal communications from Congress and McCarthy lied to the committee considering her nomination.

How bad is the EPA? The Society of Environmental Journalists, on the occasion of the April 11 hearing on McCarthy’s nomination, released a statement that said, “The Obama administration has been anything but transparent in its dealings with reporters seeking information, interviews and clarification on a host of environmental, health and public lands issues.” The SEJ accused the EPA of being “one of the most closed, opaque agencies to the press.”

Apparently, the primary consideration for the job of EPA Director is an intense desire to destroy the use of hydrocarbons, oil, coal and natural gas, for transportation and all other forms of energy on which our economy depends. Obama, when campaigning in 2008, made it clear he wanted end the use of coal to generate electricity. At the time, fifty percent of all electricity was produced by coal and now that figure is in decline as coal-fired plants are being forced to close thanks to EPA regulations.

If Ms. McCarthy has her way, the cost of driving cars and trucks will go up in the name of protecting the health of Americans. As Paul Driessen, a senior policy advisor for the Committee For a Constructive Tomorrow, recently noted, “Since 1970, America’s cars have eliminated 99% of pollutants that once came out of tailpipes.” Joel Schwartz, co-author of “Air Quality in America”, points out, “Today’s cars are essentially zero-emission vehicles, compared to 1970 models.” The EPA’s latest attack on drivers is the implementation of “Tier 3 rules” intended to reduce sulfur levels to achieve zero air quality or health benefits.

Suffice to say that the air and water in America is clean, very clean. Whatever health hazards existed in the 1970s no longer exist. Like all bureaucracies, the EPA now exists to expand its budget and its control over our lives. The Heritage Foundation has calculated that Obama’s EPA’s twenty “major” regulations—those that cost $100 million or more annually—could cost the U.S. more than $36 billion per year. Obama’s EPA has generated 1,920 new regulations.

Don’t think of the EPA as a government agency. It is a weapon of economic destruction.

This has not gone unnoticed. A recent Wall Street Journal opinion by John Barrasso, a Republican Senator from Wyoming, noted that “During President Obama’s first term, EPA policies discouraged energy exploration, buried job creators under red tape, and deliberately hid information from the public.”

“Many EPA regulations,” said Sen. Barrasso, “chased microscopic benefits at maximum cost,” noting for example that “The EPA has proposed dropping the acceptable amount of ozone in the air from the 75 parts per billion allowed today to 60 or 70 parts per billion. The agency concedes that the rule would have a minimal effect on American’s health, but says it would cost as much as $90 billion a year. A study by the Manufacturers Alliance for Productivity and Innovation estimated it would eliminate up to 7.3 million jobs in a wide variety of industries, including refining.”

The other sector in the EPA’s bull’s eye is agriculture. Not content with laying siege to auto manufacturers, oil refineries, coal-fired plants, and all other energy users that might generate carbon dioxide and other so-called greenhouse gases, Barrasso noted that the EPA “has gathered personal information about tens of thousands of livestock farmers and the locations of their operations” which it then shared with environmental groups.

Writing in The Daily Caller, Henry Miller, a physician and molecular biologist and currently the Robert Wesson Fellow in Scientific Philosophy and Public Policy at Stanford University’s Hoover Institution, characterized the EPA as “a miasma populated by the most radical, disaffected and anti-industry discards from other agencies,” adding that there was “entrenched institutional paranoia and an oppositional world view.”

“Unscientific policies and regulatory grandiosity and excess,” wrote Dr. Miller, “are not EPA’s only failings; neglecting to weigh costs and benefits is shockingly common, noting that “The EPA’s repeated failures should not come as a surprise because the agency has long been a haven for scientifically insupportable policies perpetrated by anti-technology ideologues.”

Marlo Lewis, a senior fellow at the Competitive Enterprise Institute, writing in Forbes magazine, pointed out Gina McCarthy, the nominee to direct the EPA, “has a history of misleading Congress and the public about her agency’s greenhouse gas regulations. “At a hearing of the House Oversight and Government Reform Committee in October 2011, McCarthy denied motor vehicle greenhouse gas emission standards are “related to” fuel economy standards. In doing so,” said Lewis, “she denied plain facts she must know to be true. She did so under oath.”

“The EPA has no statutory authority to regulate fuel economy. More importantly, the federal Energy Policy and Conservation Act prohibits states from adopting laws or regulations ‘related to’ fuel economy.”

The point of this exercise is demonstrate that the EPA is the very definition of a “rogue agency” for which neither laws, nor science, are of any consequence as it pursues policies that do incalculable harm at a time when the nation is deep in debt and in need of economic growth, not regulatory strangulation.

© Alan Caruba, 2013

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The U.S. is Blocking Energy Wealth and Jobs

By Alan Caruba

What if I told you that the government was blocking America’s prosperity in the form of enormous untapped energy reserves that represent wealth and jobs that would once again put America on the path to fiscal security and growth?

Recently, Matt Vespa, on CNS.com reported that the International Energy Agency released a report that said the United States has the capacity to outpace Saudi Arabia as one of the world’s leading producers of oil. It projected that the U.S. could become a net oil exporter around 2020. It could become entirely self-sufficient.

Even so, the Obama administration just moved to cordon off 1.6 million acres estimated to represent one trillion barrels worth of oil in the name of conservation. At the same time, the Environmental Protection Agency is moving to so encumber hydraulic fracturing—fracking—with so many regulations it will thwart increased use of this extraction technology that has been safely in use for decades.

As Dan Kish, Senior Vice President for Policy at the Institute for Energy Research, warns, there is a major government effort “to federalize hydraulic fracturing regulation” which is already being done by states “in a very professional and knowledgeable way. Take fracking away, the oil and gas production drops.”

For years, through many administrations, the federal government has been doing everything in its power to restrict drilling domestically and off-shore where billions of barrels of oil remains untapped. In October, a Wall Street Journal editorial noted that “The latest example is the Interior Department’s little-noticed August decision to close off from drilling nearly half of the 23.5 million acre National Petroleum Reserve in Alaska.”

As far back as 1976, Congress designated the Reserve a strategic oil and gas stockpile to meet the “energy needs of the nation”, but oil and gas that is not extracted meets no needs. It keeps the nation dependent on imported oil and gas. In an August 22 letter to Interior Secretary Ken Salazar from the entire Alaska delegation in Congress called it “the largest wholesale land withdrawal and blocking of access to an energy resource by the federal government in decades.”

Noting that “Most of the other 11.5 million acres are almost indistinguishable from the acreage owned by the state that is being drilled safely nearby” the Journal pointed out that drilling on privately owned land has seen North Dakota pass Alaska as the second highest oil-producing state behind Texas.”

According to the Congressional Research Service, “The federal government owns roughly 635-640 million acres of the land in the United States. Four agencies administer 609 million acres of this land; the Forest Service in the Department of Agriculture, and the National Park Service, Bureau of Land Management, and Fish and Wildlife Service, all in the Department of the Interior.” The Bureau of Land Management manages 248 million acres and is responsible for 700 million acres of subsurface mineral resources.

Mostly by stealth, more and more privately owned land is being purchased by the federal government. In September 2011, Audrey Hudson, writing for Human Events, reported that “The Obama administration is spending $35 million to buy 30,000 acres of private property across the U.S. this year to make permanent homes for mice, fairy shrimp, mussels, prairie bushes and beetles. Those are just some of the 70 critters and plants to benefit from the land purchases in a dozen states as part of the government’s habitat conservation plans for endangered species.”

Quoting Rob Gordon of The Heritage Foundation, Hudson reported that “The federal government already owns more land than Germany, France, the United Kingdom, Spain, Italy, and Poland combined.” The Endangered Species Act is just an excuse to secure ownership of more land and, in particular, to restrict development of every description from housing to hospitals.

Instead of a future in which our oil and gas reserves could unleash all manner of economic growth and the generation of thousands of new jobs, Ben Wolfgang, reporting in the November 22 edition of The Washington Times, “The drilling process that has brought the U.S. energy independence within reach faces renewed scrutiny from the Obama administration and an uncertain future in many states.”

“Next month, the Environmental Protection Agency is expected to release a draft of its long-awaited report on suspected links between water pollution and fracking, which uses huge amounts of water, combined with sand and chemical mixtures, to crack underground rock and release trapped oil and gas.” Fracking, however, occurs well below underground water levels and has been shown to have no effect on it.

What we are witnessing is the deliberate effort by the Obama administration, in concert with earlier administrations, to deny the economic benefit of tapping the nation’s vast reserves of oil and gas domestically and off-shore. This was evident, as well, in the President’s decision about the XL Keystone pipeline on the grounds that it threatened aquifers if allowed to proceed. Thousands of jobs were lost in that single decision with no evidence of the truth of the assertion.

As the nation sinks further into economic decline and default, it is obvious that the nation’s energy sector is being thwarted at a time when it holds the promise of lifting it out of growing unemployment, higher energy costs, and the drumbeat of utterly false environmental claims about greenhouse gas emissions.

© Alan Caruba, 2012

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Alan Caruba’s commentaries are posted daily at “Warning Signs” and shared on dozens of news and opinion websites. His blog recently passed more than 2 million page views. If you love to read, visit his monthly report on new books at Bookviews. For information on his professional skills, Caruba Editorial Services is the place to go! You can find Alan Caruba on both Facebook and Twitter as well.

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