How a bishop is chosen

HOW A BISHOP IS CHOSEN
The process
Pope Benedict XVI is responsible for selecting and naming bishops of the Roman Catholic Church. But the process involves considerable input from various sources.
The Vatican receives lists of clergy recommended for the post of bishop from bishops in each province of the country where the new bishop is needed.
The process is done in consultation with the Papal Nuncio (also called the Vatican ambassador) to that particular country. The current Papal Nuncio is Archbishop Pietro Sambi.
Besides those clergy reccommended, bishops will seek input concerning potential candidates from individuals in his diocese.
The Holy Father also will consider candidates from the pool of auxiliary bishops serving in that country before making a decision.
Once a bishop is installed, his powers include administering the Sacrament of Confirmation, the dedication of a church, the consecration of an altar and chalices and generally of the articles serving for the celebration of Holy Mass, the reconciliation of a desecrated church, the benediction of bells, the benediction of an abbot and the benediction of the holy oils.
The bishop is the teaching and governing authority in the diocese. He also is obliged to conform to the general legislation of the church and the directions of the pope.
Source: Diocese of Youngstown, Catholic Encyclopedia