Regulatory Negotiation: The Case of International Paper's Hydrodam Re-licensing Procedure

Some US regulators perceive that there are problems with the risk management process currently practised in the country. They are concerned that it is inherently legalistic, economically inefficient, and time-consuming (eg Kagan, 1991). These issues have been exacerbated by increasing public distrust toward policy makers and other opinion formers. Negotiated rule-making has been proposed by some academics and regulators as a possible way of resolving these problems of the regulatory process. This paper examines a case study of the negotiated rule-making approach utilised by the International Paper Company in re-licensing four hydropower dams in Maine. Although the approach in this instance was time-consuming, it was not adversarial and it led to increased public and stakeholder trust toward the company.