Mercatus Center Economist Appears
 Likely Nominee for Director of OIRA



Susan Dudley, an economist with the conservative Mercatus
Center at George Mason University, appears to be the Bush
administration's choice to head the Office of Information
and Regulatory Affairs at the Office of Management and
Budget, industry sources told BNA July 13.


While no official announcement has come from the White
House, OMB Director Rob Portman confirmed that "paperwork
has been sent" on a nominee during a recent interview with
BNA.


Dudley's nomination is now proceeding through a background
check and political clearance, a senior officer at the U.S.
Chamber of Commerce with direct knowledge of the selection
process told BNA July 13.


Dudley, who has directed the Mercatus Center's regulatory
studies program since 2003, is likely to face stiff
opposition from environmental groups and other public
interest advocates who cite Dudley's extensive work
questioning the regulatory benefit of certain health,
safety, and environmental regulations.


She would replace John Graham, who directed OIRA since the
start of the Bush administration and left the position
earlier this year to become dean of the Pardee RAND Graduate
School in Santa Monica, Calif. OIRA, established during the
Reagan administration, reviews all major regulations
promulgated by federal agencies and departments.


The OIRA slot is currently filled on an acting basis by
Steven D. Aitken, OMB's deputy general counsel. Aitken
succeeded Donald Arbuckle, OIRA's former deputy director, as
acting director. Arbuckle retired from the agency in June.


At the Mercatus Center, Dudley has written on the costs to
society of federal regulations, the growth of regulatory
staffing during the Bush administration, "Defining What to
Regulate," and "Anticompetitive Barriers to E-Rulemaking,"
among other subjects. She also serves as an adjunct
professor at George Mason School of Law, where she teaches
courses in regulation.


Before joining the Mercatus Center as a senior research
fellow in 1999, Dudley worked at Economists Inc., a
Washington, D.C.-based consulting firm from 1991-1998 where
she served as vice president and director of environmental
analysis, applying financial and economic concepts to
environmental and energy issues. She also has prior
experience at OMB, reviewing health, safety and
environmental regulations from 1985 to 1989.

             Groups Mobilize Against Nomination



In anticipation of Dudley's expected nomination,
environmental groups are already taking steps to line up
opposition against her. "If they name Dudley to that job, it
will be like throwing up a lightening rod--it will be
enormously controversial," said Frank O'Donnell, president
of the advocacy group Clean Air Watch. He said groups have
begun contacting Senate Democrats about Dudley in hopes of
scuttling her confirmation on the Senate floor.


"She would have a record people could point to as one more
example of the Bush administration favoring industry over
the public's health and safety," O'Donnell said, noting
Dudley had opposed EPA's proposed regulations against smog,
low-sulphur gasoline, and arsenic limits in drinking water.


In her 1997 congressional testimony opposing EPA's proposed
ozone standards, for example, Dudley cited a study stating
that the "leading cause of asthma by far was ... proteins in
the droppings and carcasses of the German cockroach."


To avoid a confirmation battle in the Senate, O'Donnell
predicted that the White House might decide to give Dudley a
recess appointment when Congress goes out in August.


Jim Tozzi, a former director of OIRA during the Reagan
administration who now heads the conservative Center for
Regulatory Effectiveness, agreed that Dudley could generate
such opposition that a recess appointment was "a
possibility."

          Colleagues Cite Dudley's Qualifications



Dudley's colleagues and former supervisors, in contrast,
sing her praise. "She's a terrific candidate," said James
Miller, who served as OMB's director from 1985-1988, and is
familiar with Dudley's work at OIRA during the same time
period.


"The reason she's qualified is because of having been
there," Miller said. "Should she be nominated, she knows
what would be expected of her at OIRA," Miller said.


"When you have these big responsibilities, you're working on
capital you already have, you don't have time to study up,"
he added, noting that Dudley had spent time "digging deeper"
into regulatory issues dealt with by OIRA during her time
with the Mercatus Center.


Jerry Ellig, a senior research fellow at the Mercatus Center
who has worked with Dudley, disputed charges that she had a
pre-set disposition against government regulatory activity.


"Anybody who believes she's going to try to read the right
answer off a cost-benefit chart is mistaken," he said. "She
believes that's an important piece of information, but it's
not a substitute for good judgment."


Before joining Economist Inc, from 1989 to 1991 Dudley was
economic adviser to a commissioner at the Commodity Futures
Trading Commission, and directed the transition team for the
assistant secretary of the Office of Environment, Safety,
and Health at the Department of Energy.


She holds an M.S. degree from the Sloan School of Management
at the Massachusetts Institute of Technology and an
undergraduate degree in resource economics from the
University of Massachusetts. (Embedded image moved to file:
pic18716.gif)End of article graphic



By Ralph Lindeman
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