Regulatory news in review
- The Food Advisory Committee, a panel that advises the Food and Drug Administration (FDA), voted 8-6 not to require warnings on the packaging of food containing food dyes. The committee failed to find sufficient evidence that food dyes caused hyperactivity in children. The FDA often follows the recommendations of its advisory committees, though it is not required to do so.
- KV Pharmaceutical Co. cut in half the price of Makena, a drug for preventing premature births, after the FDA announced that it would allow specialty pharmacies to sell a much cheaper version of the drug. KV Pharmaceutical previously had exclusive permission to sell the drug, but after the company set the drug’s price, the FDA raised concerns about its accessibility to low income-women.
- President Obama delivered a speech about energy, declaring a national goal of reducing oil imports by a third by 2025, compared to a baseline year of 2008. He proposed imposing new energy efficiency standards, supporting biofuel and cellulosic ethanol refineries, and increasing domestic oil and natural gas production.
- As a step in implementing the 2010 Patient Protection and Affordable Care Act, the Department of Health and Human Services proposed a rule that would form accountable care organizations (ACOs), which are groups of doctors and hospitals that manage the medical care of assigned groups of elderly citizens on Medicare. ACOs will be rewarded financially for providing high quality care at lower cost. Insurance providers warn that large ACOs could monopolize health care, but the rules provide controls to regulate the influence of large ACOs. See related The Regulatory Review essay.
- Ohio Governor John Kasich signed a bill into law that eliminates the collective bargaining rights of public employee unions. Unlike a similar, much-discussed Wisconsin law, the Ohio legislation would not exempt police officers and firefighters.
- The Federal Deposit Insurance Corporation (FDIC) released a proposed rule that would only allow lenders to securitize the safest mortgage loans issued, known as “qualified residential mortgages,” without retaining some risk. The FDIC says that this proposed rule, which implements the Dodd-Frank Act, would keep lenders more accountable for the loans they issue while not raising the cost of loans for consumers. See related The Regulatory Review essay.
- The House Judiciary Subcommittee on Administrative and Commercial Law held a hearing to discuss ways to improve the agency rulemaking process and the Administrative Procedure Act. The debate centered on whether agencies involve the public early enough in the rulemaking process and if they should be required to conduct more cost-benefit analyses. See related The Regulatory Review essay.
- The Nuclear Regulatory Commission (NRC) issued a proposed rule to approve a temporary method of storing spent nuclear fuel called the HI-STORM Flood/Wind cask system. The cask system is a dry storage method, and it is considered safer than the cooling ponds that the Japanese Fukushima nuclear plant used. The NRC has already approved 21 other cask systems.
- The Migrant Clinicians Network and other advocacy groups petitioned the Environmental Protection Agency (EPA) to create a rule requiring printing pesticide labeling in both English and Spanish.
- The EPA approved a mobile air conditioning refrigerant, called hydrofluoroolefin -1234yf, for use in cars and light-duty trucks. This refrigerant could substitute for chlorofluorocarbons, which have been shown to deplete the ozone layer and are regulated under the Clean Air Act.
