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South Carolina lawmakers have approved a bill that critics say could hamper efforts to protect the environment and public health by adding an extra layer of protection for businesses.
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The bill says new regulations that would cost businesses at least $1 million over five years must be voted on by the Legislature.
Under long-standing state law, many regulations adopted by state agencies automatically take effect after several months unless the Legislature steps in to stop them.
Critics say the new $1 million provision is another tool that businesses could use to stop proposed regulations they don’t like, even if the rules protect the public at large. They say it would not be hard to make the case that new regulations could cost businesses $1 million, or $200,000 annually, over five years.
Supporters of requiring the $1 million threshold say that while it insulates businesses from unneeded regulations, it does not prevent the Legislature from voting to approve expensive regulations if the rules are important enough.
The Legislature’s approval of the bill Thursday, June 25 follows months of discussion and debate on whether regulations are putting too much of a burden on businesses, particularly small ones. The bill, as approved, left out many of the more extreme proposals that had been initially advocated by sponsors of the legislation.
Environmental groups that opposed the regulatory reform effort said they are relieved that the extreme provisions of the original bill were stripped out. Many advocacy groups, as well as some business organizations, spoke against the initial legislation.
Despite changes that softened the bill, conservationist said the requirement that the Legislature vote on regulations with a $1 million impact on businesses is a potential roadblock to protecting the public on an array of fronts.
Emily Poole, an attorney who deals with regulatory matters for the S.C. Environmental Law Project, said big businesses could become adept at using economic studies to stop rules they oppose.
“A possible problem is that people with resources can come up with endless studies to show that this is going to be a burden to them,’’ Poole said, noting that the public could suffer without proper rules to protect people.
“Regulations keep us safe,’’ Poole said. “They touch way more than the environment, but also public health, our workplaces, the cars we sit in, the planes we ride on. They keep our water clean, our air clean and keep us on a path where we can safely live as humans.’’
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One example of a potential problem is possible development of regulations to protect communities from toxic forever chemicals that are contained in sewer sludge farmers use as fertilizer, she said.
The state doesn’t require testing for forever chemicals before the material is spread on land, nor does the state limit the amount of forever chemicals in the sludge. But forever chemicals commonly found in sewer sludge have been found in nearby rivers and drinking water plants downstream — and there has been a call by environmentalists and some farmers to better regulate the chemicals
Efforts to cut down on regulations have been discussed in the Legislature for years, but this year, the bill to address limiting these rules moved steadily through committees. Some business groups advocated for the bill, although not all supported it initially.
Supporters of the new law say concerns by environmentalists are misguided. Many concessions have been made in the bill, which at one point required two regulations to be cut for every new regulation that was added.
Sen. Jason Elliott, a Greenville Republican who often supports bills backed by environmentalists, said the regulation bill is a good way to shield small businesses from unwarranted restrictions.
“It’s an additional protection for businesses, focusing to give the private sector another tool when, objectively, a government regulation is too burdensome,’’ Elliott said. “You would balance the protection of the general public versus a particular segment of industry.’’
Rep. Jeff Bradley, a Beaufort County Republican, said he believes the bill, as adopted, serves both business and public safety needs.
“What you’re trying to do is somehow slow down the process of promulgating regulations that cost business more and more money,’’ he said.
Regulations are rules developed by state agencies based on laws the Legislature passes. They often involve agencies having to interpret laws, which can lead to disagreements..
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The bill would take effect upon the signature of Gov. Henry McMaster.