2003 - 1999 Archives

FM Watch Requests OFHEO Review without Supporting Data
FM Watch has urged the Department of Housing and Urban Development (HUD) to correct an alleged systematic risk to the national housing market's financial system from Freddie Mac and Fannie Mae. FM Watch, a coalition of financial services and house-related trade associations, monitors the two government-subsidized enterprises (GSEs): Fannie Mae and Freddie Mac. Recently, Freddie Mac and Fannie Mae announced that financial earnings will be restated. These announcements have augmented FM Watch's urgency regarding reform for the GSEs. FM Watch advocates an independent review of the OFHEO risk-based capital rule and other OFHEO regulatory actions. OFHEO is an independent agency under HUD. FM Watch alleges that OFHEO has adopted a completely different approach to risk-based capital than all other financial institutions. Although FM Watch's request may have merit, FM Watch needs to provide a factual evidence for its request instead of speculation. Outside groups like FM Watch cannot request costly re-evaluations unless these outside groups present sound factual basis for which such evaluations should occur.

CSPI Asks Dentists to Put the Bite on Corporate Responsibility
The Coca-Cola Corporation recently donated $1 million to the American Academy of Pediatric Dentistry (AAPD) to "support important clinical, basic and behavioral research" and "create public and professional educational programs, based on science, that promote improved dental health for children." Instead of applauding this generous act of good corporate citizenship, which promises to improve the dental health of countless children, the Center for Science in the Public Interest is asking the Academy to refuse the money. Watchdog Watch is tempted to suggest that CSPI should not ask AAPD to turn down the funds unless they were willing to make up the money out of their own resources. However, if AAPD were to adhere to the CSPI's principle of not accepting funds from organizations whose actions are contrary to children's health, the dental association might have to refuse CSPI funding.

CRE Rebuts NRDC's Third-Party Comments on EPA's Biosolids Proposal on Data Quality Grounds
NRDC submitted detailed comments on EPA's draft biosolids risk assessment and NODA which argued that EPA must strictly regulate land-applied biosolids because they pose a significant incremental risk over the background risk from dioxin and related compounds. After careful review in its Watchdog Watch role, CRE found that the NRDC comments contained many substantial inaccuracies, omissions, biases, and lack of reproducibility. When these defects in the NRDC comments are illuminated, it is clear that the NRDC comments cannot be used by EPA under Data Quality standards and that, if anything, the EPA draft risk assessment overestimates the reasonably anticipated risks from dioxin and related compounds in land-applied biosolids.

Think Tanks ALLEGEDLY Turning into Alternative Lobbyists
The New America Foundation states that for financial reasons in a struggling economy, some think tanks have allegedly become puppets that support policies as directed by corporate funding sources. Corporations are allegedly viewing think tanks as effective alternative lobbyists because policy makers often view the think tank industry as a dependable source for impartial policy analysis. Although there is no numerical evidence to justify the claim, Steve Clemons, vice president of the New America Foundation, makes that broad accusation based on anecdotes from the think tank industry. He concludes that think tanks would be wise to prevent such occurrences through transparency and "best practice" policies as a mechanism of self-regulation.

Crown Victorias
The Center for Auto Safety is currently organizing a campaign against Ford's Crown Victoria. The Crown Victoria models serve as police cars. The Center for Auto Safety offers anecdotal recollections, often void of statistics, against findings of the National Highway Traffic and Safety Administration (NHTSA). On October 17, 2002, NHTSA closed the Ford Crown Victoria investigation without finding fatal defects. The Center for Auto Safety posted misleading articles because the articles offer no cause-and-effect data.

CEO Greed: A Precursor to Government Regulation
The February 11th edition of The Wall Street Journal reported on a scheme by senior executives of Sprint. The scheme, which allowed the officials to reap millions of dollars in compensation, was based on their completion of a plan to merge with WorldCom, rather than completion of the merger itself which was ultimately rejected by Federal authorities. The executives compounded their error by attempting to avoid taxes on their gains through a questionable tax shelter. While such actions are far from representative of Fortune 500 companies, the Washington regulatory machine works on "worst-case-scenarios" . Other industry CEO's should make it clear that when such events occur there will be a long term cost to the culpable firm, a rebuttal presumption against doing business with the company. Self-policing is a lot more effective than regulating on "worst-case-scenarios".

DOW Shuts Down Prankster Web-Page - A Victory for Internet Integrity
DOW effectively combated pranksters to preserve its professional reputation. An anti-corporate group, The Yes Men, created a "spoof" web-page that satires DOW's position regarding the Bhopal (India) chemical spill. On December 3, 1984, lethal chemicals leaked from Union Carbide's tanks. The Indian Government estimates that about 3,800 people died from this leak. In 1989, Union Carbide paid $470 million in compensation to comply with a settlement between Union Carbide, Union Carbide Indian Limited, and the Indian Government. DOW acquired Union Carbide on February 6, 2001. Greenpeace applauded the Yes Men's prank page, although it abused the internet by fooling some audiences into believing that the site's message actually derived from DOW. Bogus use of the internet, like this, invites more regulation. CRE supports the thrust of DOW CEO's open letter to all employees. Concerns for the residents of Bhopal continue, but cooperation between grassroots organizations and industry will prove more fruitful than internet pranks.

Nestle Agrees to Donate Ethiopian Claim to Charity, A Flaw in the International Debt-Reduction Framework
The Swiss multinational company, and claimant, Nestle, has offered to pledge claim settlement funds towards famine relief in Ethiopia. While enduring one of the worst famines in the past 20 years, the Ethiopian government currently faces claims up to $500 million in compensation to private creditors. In 1975, the former Ethiopian military regime catalyzed these private suits when it nationalized businesses without compensation. Like many nations, the Ethiopian government fears that unresolved compensation claims will deter investment and exacerbate their current economic situation. Not withstanding the fact that many international monetary groups provide debt relief to countries like Ethiopia, activists scold private firms and individuals for not recognizing their "moral obligation" to international poverty. These claims illuminate a flaw in the international, debt-reduction framework: resolution of private sector claims.

Sierra Club Support for Democratic Candidates
The Sierra Club represents itself as an environmental organization dedicated to environmental protection. This role requires the organization to participate in unbiased lobbying and litigation consistent with furthering its interests. The organization clearly states its missions and objectives. However, the Sierra Club politicizes its image through open partisan support. A list of candidate endorsements on its website reflects an overwhelmingly democratic slant. Partisanship detracts from what is otherwise an important mission.

PR Watch Reports "Bloggers" Lead to the Downfall of Lott
PR Watch indicates that it was not the national press, but instead, bloggers who lead to the downfall of Senator Lott. Bloggers are individuals who post blogs on a website; a blog is a chronological set of personal observations. PR Watch reports that there was a five-day period between the time that Lott's speech was presented on the web and the time that it was reported in the national press. WatchDog Watch recognizes that the exponential reading and dissemination of the web and events such as this underscore the need for a watchdog over watchdogs.

FuelEconomyIn.US: America's Automotive Voice
Federal regulation of SUVs and other light trucks affects virtually all Americans. However, until now, it was difficult or impossible for most citizens to effectively participate in the government's decision-making process. FuelEconomyIn.US was launched by the CRE to help grassroots stakeholders ensure that proposed new federal regulations don't strip Americans of their ability to choose, or afford, the vehicles that best meet their needs. To this end, FuelEconomyIn.US will be providing stakeholders with the information they need to make a difference in regulatory process. FuelEconomyIn.US will also be directly contacting diverse stakeholders to support their participation in the regulatory process. Please read FuelEconomyIn.US to learn more about this important project.

Sierra Club Loses a Case on Standing
In January of 2000, the Sierra Club launched a legal attack against the Hawaii Tourism Authority's efforts to implement a $114-million marketing plan. The Sierra Club's petition alleged that the Hawaii Environmental Planning Act required an environmental review of the initiative. The increase in tourism (approx. 30,000 persons/day) would overtax coastal and ocean resources, overburden public infrastructure, and introduce additional alien species, according to the petition. On Dec. 6, 2002, the Hawaii Supreme Court decided to dismiss the case. This decision ends the Sierra Club's first lawsuit against a tourism agency. The court opined that the Sierra Club no legal standing. The Sierra Club did not demonstrate that: 1) it would suffer actual or threatened injury as a result of increased tourism marketing; 2) tourism marketing expenditures would cause such alleged or threatened injury; and 3) a favorable judicial decision would "likely remedy" the situation. Sierra Club v. Hawaii Tourism Authority shows the tendency of courts to scrutinize the claims of special interest groups on standing issues.

Objectivity of NAS Questioned
Dr. Miller, a Hoover Institution fellow, sharply criticizes the National Academy of Sciences in a news release, arguing that an incident of blatant political bias of its committees, operating under the National Research Council (NRC), led to the Academy compromising its principles (in an analysis described by the author as "Taking a Dive") on two key biotechnology regulation issues involving the USDA and EPA. The Academy's approval of two studies on recombinant DNA-modified plants, Miller says, revealed a "flawed analysis", and undermines the reputation of the Academy and its large responsibility to "advise the federal government on scientific and technical matters." WatchDog Watch is not taking a position on these accusations; however, our experience has been that if the NAS has overlooked an important element of a study, they will revisit it. WatchDog Watch would appreciate the views of its readers on this topic.

FCC Approval of AT&T Comcast Merger Rankles Watchdog Group
FCC's November 13th announcement of its approval of the merger of AT&T and Comcast, an action representing one of the largest consolidations of mass media and communications in the history of the United States, an action regarded by the FCC as the most economically viable, avoiding the difficulties of a joint venture. The move was approved by the FCC on the grounds that the merger will not be in violation of any statutes, notably the Communications Act. Consumers Union, a consumer advocacy group, argues that the price increases are symptoms of the unchecked monopoly of the cable industry, along with steady deregulation of the cable industry, a product of the Congressional passage of the Telecommunications Act under the Clinton Administration. Consumer Union refers to the merger as "price gouging of cable monopolies...they [the Bush Administration] are doing nothing to make satellite a more serious competitor, so consumers are left beholden to the cable monopolies." WatchDog Watch would be interested in any analytical data that Consumers Union can provide in support of its assertions.

Center for Science in the Public Interest Criticizes Politics of Peer-Review Journal
The Center for Science in the Public Interest released a statement implicating strong political bias in the pieces written for the journal Regulatory Toxicology and Pharmacology (RTP), the official journal of the International Society for Regulatory Toxicology and Pharmacology (ISRTP). The Center argues that articles from the corporate-funded journal, whose staff it states as having "extensive financial ties to tobacco, chemical, pharmaceutical, and other industries",
have been used in corporate litigation aimed at blocking regulation. The reputation and credibility of the journal on the whole, and specifically, its status as a peer-review periodical, are in question if representatives of the publication continue their affiliation with ISRTP. WatchDog Watch recommends that the group cite more specific examples of pro-industry bias.

Staples Announces Plan to Change Its Policies in Procuring Paper Products
Staples recently announced a new initiative that will effectively phase out paper products composed of wood from endangered forests, a move largely motivated by environmental advocacy groups. The new plan has been applauded by critics of Staples' past practices of procuring paper products, and by representatives of the company, which will "create an executive post to oversee environmental affairs". Since the environmental groups have had only a limited amount of success in getting the Bush Administration to adopt their activist agenda, they have had to resort to "targeting major corporations through shareholder letter-writing campaigns and demonstrations at annual meetings", according to Danna Smith, of the Dogwood Alliance, one of two groups (along with ForestEthics of San Francisco), which pushed for the Staples initiative. WatchDog Watch is monitoring this.

Citigroup Shareholders Submit Proposals for Improving Corporate Accountability
Three shareholder proposals filed for review at Citigroup's annual meeting included: environmental impact; political influence; corporate welfare. In one proposal, the shareholders request that Citigroup change its fossil fuels extraction practices in favor of more environmentally conscious practices; in another proposal, the shareholders request that Citigroup reform its practices in obtaining and requesting contribution cards in favor of an approach that can assure greater non-partisanship. Perhaps the most substantial argument came from a shareholder requesting that the corporation broaden the scope of its gift-match program to encompass more employees. The proposals contain no provisions for carrying out the reforms envisioned by the shareholders, nor do they address the fiscal impacts of such reforms on Citigroup. WatchDog Watch recommends that shareholders assess the financial implications of these proposals on the economic well-being of all shareholders.

US PIRG Report Links Cancer Risks and Air Pollution
US PIRG recently announced a report that studies the links between air pollutants and diesel soot, and cancer risk. The report, "Dangers of Diesel: How Diesel Soot and Other Air Toxics Increase Americans' Risk of Cancer", finds that the levels of exposure of Americans to diesel soot from cars, trucks and non-road engines far exceeds acceptable levels. Advocating strict enforcement of clean air standards and the adoption of clear-cut measures for vehicles and engines contributing to the diesel soot problem, US PIRG compliments the EPA on its recent adoption of new standards for diesel trucks and buses, yet criticizes it for acting slowly on broadening standards that will address sources of toxic emissions not covered under current legislation, which will ultimately "fulfill its Clean Air Act mandate". Meeting the reproducibility requirement in the Data Quality Act, however, represents a significant obstacle in the study. WatchDog Watch reminds all parties that the study can not be considered by the Federal government until the statutory requirements of the Data Quality Act are fulfilled.

With Policy Failures, Greenpeace Resorts to Mob Action
Greenpeace released a statement discussing its recent victory over Esso, an oil corporation it has deemed a serious threat to climate change. The large-scale protests organized in Luxembourg, Belgium were designed to deal a heavy blow to Esso; however, the results were of largely insignificant economic consequence, and no concessions were made. Greenpeace's confrontations with Esso and other corporations deemed as ecological threats underscores a fundamental flaw in its approach: embracing a grassroots approach that overlooks the legal and regulatory process as a necessary component in achieving their ends. Unlike some other environmental organizations, Greenpeace has had difficulty in winning issues in the courts, obtaining Congressional support, or regulatory response from agencies. Therefore, Greenpeace must resort to strong arm tactics, as in the case of the Luxemobourg Esso protests, a scene described as "blocked by caution tape, 'Closed' signs, and volunteers chained to pumps or across entrances." WatchDog Watch suggests that Greenpeace spend more time on substance, less on rhetoric.

Consumers Union Supports Labelling Genetically Engineered Food
The Consumers Union recently published a letter to Governor John A. Kitzhauber of Oregon, expressing support for Measure 27, an initiative that would mandate labeling foods and food additives that are a product of genetic engineering, advocating public access to information, and disagreeing with the FDA's position that the detection of genetically modified foods is not significant or apparent. The organization argues that the FDA, in neglecting the difference between foods that are genetically engineered and foods that are not, should opt to label the foods under the Food Drug and Cosmetic Act as a "material fact", restating the importance of consumer choice and access to information. Such a mandate, however, represents over-regulation, and loses its impact because of the virtually impossible task of not assigning a genetically modified category to most foods, which would undoubtedly mislead the consumer. Watchdog Watch wonders how the Consumers Union reconciles its support of a measure that comes at the expense of the consumer.

Sierra Club and CATO Reach Agreement on Energy Bill
In a Washington Post article, officials from the Sierra Club and CATO voice their mutual opposition to an energy bill passed by the House in August 2001, which could affect the means by which the Federal Energy Regulatory Commission structures the industry. The two organizations cite public and private subsidies as the main impetus behind the bill, arguing that the commonly cited issues of lack of energy sources and potential market failure are used to shift focus away from subsidies issues. The Sierra Club and CATO, however, are fundamentally opposed to the means by which to achieve a restructuring of industries that would encourage an even distribution of subsidies. When these two diametrically opposed groups agree, it is unlikely that Watchdog Watch will find inaccuracies in their statements.

Union of Concerned Scientists Releases Statement Implying NRC Negligence
The Union of Concerned Scientists released a statement in which is questions unresolved safety concerns in nuclear power plants, arguing that the recent discovery of cracks in 49 of the 59 nozzles on the reactor vessel head at the North Anna Unit 2 nuclear power plant located near Richmond, Virginia, represents part of a larger issue concerning NCR's negligence of similar mechanical problems in other nuclear power plants nationwide. The union goes on to say that NRC has been negligent in completing its fundamental task of documenting and addressing structural and system repairs and replacements. Dominion Energy, however, thoroughly assessed the problem at the North Anna plant, and has ordered new vessel heads. WatchDog Watch feels that the Union of Concerned Scientists has responded hastily to a situation that has been resolved in a timely manner.

Venues for Law Firms: The Courts and Non-Profits
The American Antitrust Institute (AAI), is a non-profit, tax exempt "education, research, and advocacy organization" which describes its mission as to "increase the role of competition, assure that competition is fair, and challenge unduly concentrated power in the American and world economy." AAI's advocacy activities include: filing lawsuits, intervening in legal proceedings by participating in oral arguments and filing briefs, testifying before Congress, and participating in federal regulatory proceedings. Law firms have been important contributors to AAI. Almost half of the AAI's contribution of over $1000 have come from law firms. WatchDog Watch wonders who the law firm's clients are and why they choose to contribute to AAI through their lawyers.

The American Legacy Foundation: The Use of a Diversionary Tactic?
The American Legacy Foundation was established as a result of the Master Settlement Agreement, a $250 billion agreement between the states and the tobacco companies. Its charter was to decrease tobacco consumption. The October 27th edition of The New York Times reports that "the foundation's chief executive, says that her group's campaign can be chiefly credited with the decline in teenage smoking-and that the tobacco companies' efforts have been largely ineffective". There is no data to support such a statement, either in the article or on the foundations' website. The American Legacy Foundation fails to mention that many states have failed to spend the allotted funds for tobacco control and fails to mention its lack of success in this area. The Times goes on to report to that in a letter to the Foundation's president, a representative of the tobacco industry stated: "It appears that the American Legacy Foundation continues to be content with taking an approach in its advertisements that seeks to vilify the tobacco industry rather than serve to educate the public". Watchdog Watch would welcome the opportunity to examine the Foundation's data dealing with the effectiveness of its tobacco control programs relative to those of the tobacco industry, in doing so we would refer the matter to the Center for Regulatory Effectiveness for review pursuant to the guidelines issued under the Data Quality Act.

CorpWatch Criticizes Nike's PR, ACLU Criticizes Corp Watch
In a CorpWatch press release from May 3rd, the author reports on a California Supreme Court ruling against Nike in a 4-3 decision, rejecting Nike's argument of free speech protection under the Constitution, after Marc Kasky, a San Francisco resident, filed a lawsuit against Nike to challenge statements made by the company that it "maintained safe, clean working conditions at its overseas factories and paid its workers local minimum wages." The suit is part of a larger issue concerning Nike defending itself against critics accusing the company of statements made about its labor practices. David Brown of San Francisco, Nike's attorney, was disappointed with the outcome and is considering an appeal to the US Supreme Court to review the case. Ann Brick, an attorney with the American Civil Liberties Union in San Francisco, said, "Free speech is the loser here...it opens businesses up to false advertising suits whenever they speak out on an issue of public debate when it has to do with their business practices". Watchdog Watch believes that this attempt at regulation through litigation could have serious impacts on the freedom of speech of corporations.

Clean Air Trust Makes Inaccurate Statements on New Source Review
The Clean Air Trust issued a press release opposing the EPA's plan to announce and implement measures to alter pollution controls as part of the New Source Review, a move the Trust sees as eventually weakening the Clean Air Act. The Trust argues that necessary review of the impacts of the EPA proposal have been blocked by aggressive lobbying from the National Association of Manufacturers (NAM). In the press release the Trust argues, "The EPA plan, developed with the support of the manufacturing lobby, would permit many more industrial plants to increase pollution.". The Trust goes on to argue that the EPA has yet to analyze potential impacts the change might have on air quality. The EPA, however, holds that heightened efficiency and pollution reduction in power plants and refineries, which, in part with emissions reductions, serve as two outcomes of implementing new controls; Pollution Control and Prevention Projects, one of the main components of the NSR, has received extensive technical review and solicited public comment following an EPA announcement from June 13, 2002. Watchdog Watch doubts that the Trust has seriously assessed the comprehensive policy plans outlined by the EPA for the NSR.

Institute of International Economics Press Release Rebutts CorpWatch Statements on the Effect of Globalization on World Poverty
In a press release drawing from Surjit S. Bhalla's book Imagine There's No Country: Poverty, Inequality, and Growth in the Era of Globalization, asserts that world poverty has been on a sharp decline under globalization. The press release is a strong counter to traditional perceptions of globalization's impact on world poverty. Mr. Bhalla's methods revealed such findings based on Studies of individuals in calculating average incomes and the use of traditional data in evaluating household surveys have led Bhalla to conclusions that differ acutely from CorpWatch's popular conception of world poverty trends and its relation to globalization. Bhalla concludes that "economic growth in a world of globalization is disproportionately beneficial for the poorest people...every 10 percent in total income in those countries is associated with a 5 percent decline in the poverty level. Policy should be based on those realities rather on inaccurate and pessimistic appraisals of the actual evolution of poverty over the relevant past". Watchdog Watch believes that Bhalla's analysis is a more focused and accurate assessment of the effects of globalization on poverty.

OFHEO Rebuts Statements Made by FM Watch Regarding Risk Based Capital Rule
In a letter to Chairman Baker, dated September 20th, Armando Falcon, Jr., OFHEO Director, refutes a letter from FM Watch expressing concerns that revisions to Financial Accounting Standard 133 (FAS 133) would adversely affect The Enterprises of Fannie Mae and Freddie Mac. Mr. Falcon argues that changing the capital requirement accounting practices, specifically GAAP, used in calculating derivatives "should not be viewed as either a benefit or detriment to the Enterprises". And further, "Both institutions met the risk-based capital requirement with substantial surpluses. Freddie Mac had a surplus of $14 billion and Fannie Mae had a surplus of $6 billion", Falcon emphasizes that the Enterprises would not have been impacted by calculations made at the end of the first quarter. Perhaps most significant is FM Watch raising the issue of changes to the RBC rule's compliance with the law, with regard to the 30% add-on. Falcon notes that, regarding the add-on, "the amendment's adjustment to capital requirements is made after the 30% add-on for management and operations risk." The letter affirms that updates to FAS 133 will not have a significant impact on the risk-based capital requirement, and that changes to calculation procedures that are based on the 1992 Act are necessary.

CorpWatch Article Aims at Issues Affecting Coffee Growers and Coffee Industry
In "USA": Drink Coffee? Read This", an article published by CorpWatch September 19th, the author assesses the impact of mass coffee farming on coffee growers globally. The article reveals the fundamental differences in approaches that organizations see as necessary in achieving fair trade and sustainability. While the author takes a positive position towards Starbucks and its partnership with organizations like Oxfam on sustainability projects, Ronnie Cummins, OCA (Organic Consumers Association) Director, advocates a radical approach to the corporate and environmental issues, calling for destroying the coffee of major manufacturers on the shelves: "Before we can take on the coffee cartel and kick canned coffee off of the shelves, period, we need to deal with a large and rapidly growing company [Starbucks] that claims to be environmentally and socially responsible". Watchdog Watch believes that social programs in the countries of coffee growers must be favored over market intervention that tends to envision short-term solutions. Watchdog Watch also believes that such intervention could have potentially deleterious results, adversely affecting farmers that do not grow in regions considered more favorable for coffee growing. Given the conflation of issues related to coffee growers and corporate interests that is presented in the article, social programs would be very beneficial.

Friends of the Earth Accuses Companies of Hiding Environmental Risks & Violating SEC Rules
At a September 30th Senate briefing, Friends of the Earth released a thirty-eight page report in which it claims that companies are acting in violation of SEC disclosure rules, failing to report risks related to climate change and environmental risks to their investors. The report was based on 2001 annual SEC filings of business sectors likely to be affected by changes in climate, which included automobile, insurance, oil & gas, petrochemical and utilities companies. The report emphasizes that the number of companies not revealing climate changes overwhelmingly outnumber companies reporting climate changes, and that investors are increasingly calling for climate change notification from companies. Chan-Fishel, coordinator of FOE's Green investments Program, says, "Corporations are leaving environmental, product safety and labor problems off the books and off the mind". Watchdog Watch doubts that the report documents substantial violations of disclosure between corporations and investors.

Friends of the Earth Opposes International Investment in Third World Countries
Friends of the Earth International issued a press release demanding the World Bank withdraw investments in mining and energy-related projects claiming such investments "impoverish people." The press release opposes investment in "environmentally and socially destructive" industries. FOEI, although detailing a number of protests and similar events, provides no evidence of the harm brought by such investment. Watchdog Watch wonders how FOEI reconciles concern for the poor with trying to cut off their energy supplies.

Center for Auto Safety Letter Ambivalent on Data Quality
The Center for Auto Safety wrote a letter to NHTSA Administrator Runge requesting the recall of 1994- early 1995 Nissan Altimas, based largely on data from an agency Preliminary Investigation concerning facial and eye injuries from passenger side airbags deploying in minor crashes. The CAS letter claims that the face/eye injury rate for the cars in question is twenty times higher than for other models surveyed. In the letter to NHTSA, CAS rejected a Nissan study utilizing a New York State database of police reported crashes which claims to show that the Altimas in question were associated with a relatively low level of face and eye injuries. On one hand, CAS states that the New York crash report form, "demands an exceptional level of injury data completeness and accuracy..." On the other hand, based on the number of eye injuries, CAS claims, "the data base is inaccurate..." CAS' letter also states that, "One cannot rely on analyses of crash data bases to determine whether there has been an eye or a face injury due to a deploying airbag." However, in rejecting Nissan's claim that the high number of reported cases blindness resulted from a single lawyer filing many cases, CAS states, "If there is no defect and injury, there are no lawsuits." Thus, CAS is rejecting a database of police crash reports as being of insufficient data quality while accepting the claims of plaintiff's lawyers. Watchdog Watch doubts that CAS' views on data quality will conform with DOT's forthcoming data quality guidelines.

Center for Science in the Public Interest Expands Into Sales Promotion Issues
THE Center for Science in the Public Interest, long known for its watchdog role on science policy issues, has expanded into sports marketing promotions. Specifically, CSPI criticized the Washington Redskins' recent promotional agreement with Diageo, a leading purveyor of premium liquor, wine and beer. CSPI's opposition to the marketing agreement, first reported in AdAge, is primarily focused on concerns that young fans would see ads for "hard liquor" as well as beer advertisements. Since a can of beer, a glass of wine and a mixed drink all have about the same alcohol content, Watchdog Watch finds the scientific basis for any differential treatment of these beverages to be non-obvious.

City of Boulder Joins Watchdogs In Suing Federal Agencies Over Climate Change
Boulder, Colorado joined with Greenpeace and Friends of the Earth in suing two federal agencies, the Export-Import Bank and the Overseas Private Investment Corporation. Boulder and the watchdogs claim that the agencies have failed to comply with the National Environmental Protection Act with regard to their provision of financing and insurance for coal and petroleum related projects. The lawsuit has many shortcomings, one of the most significant being establishing causation on the part of the agencies, i.e. demonstrating that their participation in the projects will materially impact Boulder's climate. In this time of budgetary stringency, Watchdog Watch wonders who is watching the taxpayer's interests.

University of Houston Economics Professor Concludes Many NGOs are Revenue Maximizing Organizations
Thomas DeGregori, in discussing the role of activist organizations in opposing genetically-modified crops, compares the groups' economic goals to those of multinational businesses. Specifically, Professor DeGregori states that, "green, anti-globalization, and environmental NGOs are revenue-maximizing organizations. They obtain their revenues by successfully marketing fear..." Professor DeGregori also notes that the European Union's rules regarding genetically-modified grain helps protect the continent's heavily subsidized agriculture industry. Thus, although both the NGOs and EU regulators are effectively watching over their own economic interests, neither is watching the interests of those who do not enjoy adequate food..

Watchdog Watch: Clean Air Trust Chastises the Pew Center on Global Climate Change
The Clean Air Trust described themselves as "dumbstruck" by a report issued by the Pew Center on Global Climate Change they interpret as critical of the Clean Air Act's New Source Review. The Trust said they were "further dumbstruck" by the Pew Center hiring "industry lobbyists" to write the report. However, Pew Center President Eileen Claussen stated that the report was neither an attack on New Source Review requirements nor an endorsement of the Bush Administration's NSR proposal. Instead, Ms. Claussen stated the report deals with the narrow issue of whether "current NSR rules provide disincentives to improving the thermal efficiency of existing power plants", a question which, "merits further discussion and debate." Although Watchdog Watch is not endorsing the Pew report, we do endorse discussion and debate over being "dumbstruck."

World Business Council for Sustainable Development and Greenpeace Issue Joint Statement on Climate Change
The World Business Council on Sustainable Development and Greenpeace issued a joint statement on climate change at the Earth Summit recently held in Johannesburg, South Africa. PR Watch described the statement as a photo opportunity for business lobbyists, who paused in work to block measurable standards, to pose with the groups they oppose. However, Watchdog Watch believes, as do the signatories, that the joint statement reflects a genuine effort to address the issue of climate change.

Draft Executive Order on Public Participation in Agency Settlements
Watchdog Watch has prepared a draft Executive Order requiring that federal agencies engaged in litigation afford the public an opportunity for notice and comment on proposed settlement agreements that may impact federal regulatory actions. Public notice and comment rights are already provided in several other regulatory contexts (e.g., anti-trust consent decrees; consent judgments where the government is a plaintiff enforcing various environmental laws). Agency settlements in this type of case often have major regulatory impacts on stakeholders who are not party to the litigation and, therefore, currently have no voice in the settlement process. The Executive Order would guarantee full transparency and full public participation in settlements that will determine the course of major regulatory programs for years to come.

Public Citizen on Water Privatization
Public Citizen recently issued a press release challenging the Bush Administration's position supporting privatization of municipal water systems, both within the U.S. and abroad. The press release castigates the Administration for its alleged "preference for corporate profits over strong citizen safeguards." It goes on to cite anecdotal information regarding the experience of Atlanta and New Orleans where corporate water providers "charged higher rates, allowed water quality to deteriorate, [and] failed to make promised investments," and it analogizes water system privatization efforts to California's troubled deregulation of its utility industry. Unfortunately, the Public Citizen press release is devoid of genuine factual support for its statements. Surely, the Public Citizen press release would not meet the standards of the Data Quality Act, were it submitted to the government.

Watchdog Watch: NRDC Expresses Views on CRE's Regulatory Watchdog Role
CRE is launching a new feature entitled "Watchdog Watch" to review the activities of organizations whose primary activity is to either participate directly in a wide range of regulatory proceedings or, through their website, to significantly influence the participation of other persons in such rulemakings. To this end, the Center has reviewed comments submitted by the Natural Resources Defense Council (NRDC) to EPA on the agency's proposed Data Quality Act guidelines, spelling out in some detail the document's strengths and areas of potential improvement. However, of comparable concern to NRDC was CRE's emerging preeminence as a "Regulatory Watchdog," which not only tracks the regulatory activities of federal agencies, but also monitors the regulatory activities of special interest groups. In future Watchdog Watch articles, CRE will present an analysis of statements and positions taken by such groups. Signing of the Executive Order would provide a mechanism for WatchdogWatch to perform its mission of reviewing and analyzing actions taken by special interest groups that lead to additional rulemaking.