Bài giảng Business Law (13th edition) - Chapter 52: Environmental Regulation

Regulation of BusinessAdministrative AgenciesThe Federal Trade Commission Actand Consumer Protection LawsAntitrust: The Sherman Act11McGraw-Hill/Irwin Business Law, 13/e© 2007 The McGraw-Hill Companies, Inc. All rights reserved.Regulation of BusinessThe Clayton Act,The Robinson-Patman Act, andAntitrust Exemptions and ImmunitiesEmployment LawEnvironmental Regulation11McGraw-Hill/Irwin Business Law, 13/e© 2007 The McGraw-Hill Companies, Inc. All rights reserved.Environmental RegulationPAETRHC52"Every human has a fundamental right to an environment of quality that permits a life of dignity and well-being." United Nations Conference on the Human EnvironmentLearning ObjectivesThe development of environmental regulationAir pollution regulationWater pollution regulationWaste disposal regulation52 - *Definition of PollutionPollution is any substance in the environment that endangers human welfareToxic substances in pollutants linked to:52 - *CarcinogenesisMutagenesisTeratogenesisBehavior disordersBald eagle faced extinction due to mutagenic effect of DDTOverview of Environmental LawU.S. Environmental Protection Agency (EPA) was created in 1970 to protect human health and the environment Principal sources of environmental law:Civil (Common Law) ActionsFederal RegulationState, Tribal, and Municipal RegulationInternational Treaties and Conventions52 - *Civil ActionsPerson may be liable for nuisance if he used property in a manner that unreasonably interferes with another’s rights to use or enjoy their propertyPerson may be liable for negligence or strict liability if he failed to use reasonable care toward a party whose injury was foreseeable and caused by the lack of reasonable care52 - *Federal environmental policy is achieved by statutes implemented by federal, state, and tribal agencies, and programs designed to regulate the environment within each respective jurisdictionLitigation, injunction, and penalties (civil & criminal) are possible consequences of violating environmental lawsFederal Regulation52 - *Nature of Environmental LawMost environmental laws are implemented through permitting programs that establish pollution limitsThus, environmental laws do not prevent pollution, but set pollution limits and create a system to compensate for environmental harmSubject of laws: health and safety, pollution, conservation efforts, environmental damage52 - *Test Your KnowledgeTrue=A, False = BPollution is any substance in the environment that endangers human welfare.States and Indian tribes may enact and enforce environmental laws. Environmental law prevents pollution.Violating an environmental law may result in a civil penalty, but cannot be a crime.52 - *Test Your KnowledgeMultiple ChoiceThe sources of environmental law include: (a) Federal legislation enacted by Congress(b) Federal agency regulations(c) State and tribal environmental law enacted pursuant to state and tribal legislative bodies(d) All of the above(e) All of the above plus international treaties52 - *Thought QuestionsWhy is environmental law necessary? Is environmental health a human right? 52 - *OVERVIEW OF FEDERAL ENVIRONMENTAL LAWS52 - *National Environmental Policy Act (NEPA)NEPA requires federal agencies to prepare an environmental impact statement (EIS) for major federal actions significantly affecting the quality of the human environment EIS must analyze the impact of proposed action on environment, expected adverse effects, practical and feasible alternative methods, any irreversible effects possible52 - *Air Pollution ProgramsPrimary law: Clean Air Act Goal: improve National Ambient Air Quality through standards (NAAQS)Focus is controlling pollution from mobile sources and stationary sources by issuing permits to polluters52 - *“End-of-pipe” air emissions at paper millEach state must develop state implementation plan (SIP) for meeting national ambient air quality standardsState environmental agencies issue permits to companies that emit pollutants specifying type of pollutants allowed and amountAct enforced by agency action and citizen suits against polluters who violate lawClean Air Act Implementation52 - *International Environmental LawThe Clean Air Act specifically supports U.S. obligations under the Montreal Protocol, an international agreement to reduce air pollution and ozone-depleting substances 52 - *Pulp and paper millWater Pollution ProgramsWetlands, Ocean, and Coastal Zone PollutionGroundwater & Drinking Water ProtectionWastewater 52 - *Acid leachate pond near mining operationPrimary Statute: Clean Water ActClean Water Act (CWA) goals:Ensure that navigable water is safe for drinking, fish & wildlife protection, and recreational useEliminate or limit discharge of pollutants into coastal and navigable inland waterways52 - *For non-point and point sources, EPA sets CWA water quality criteria or standardsEvery industrial or municipal facility must apply for a National Pollutant Discharge Elimination System (NPDES) permit to discharge pollutants into inland waterways or oceansGenerally, state agencies establish standards for state water bodies and issue permitsClean Water Act Standards52 - *WetlandsSection 404 of the Clean Water Act (CWA) protects wetlands by requiring a permit from the Army Corps of Engineers before dredged or fill material may be discharged into waters of the United States52 - *Endangered green pitcher plant found in some southern wetlandsPrimary Laws: FIFRATSCARCRACERCLALand Pollution52 - *Iron Mountain Superfund site in California caused by acid mine drainagePesticides & Toxic SubstancesFederal Insecticide, Fungicide, and Rodenticide Act (FIFRA) regulates use of pest control chemicals, from food growth to food packaging, to minimize presence of pesticides in consumable foods Toxic Substances Control Act (TSCA) requires anyone planning to sell or market chemicals to first determine effect on human health and the environment52 - *In a cradle to grave regulatory system, RCRA and CERCLA regulate storage, disposal, and remediation of hazardous substancesResource Conservation and Recovery Act grants EPA power to regulate the monitoring, transporting, storage, treatment, and disposal of solid waste and hazardous wasteTracking of substances from creation of waste through disposal or treatmentWaste Disposal Laws52 - *CERCLA52 - *Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) of 1980, or Superfund, authorizes EPA to ensure clean-up and remediation of hazardous waste sites and assign liability for clean-up costs to any potentially responsible party (PRP)Current owners or operators, former owners or operators, arrangers for treatment or disposal of hazardous substances, and transportersConservation Efforts52 - *A number of laws, such as the Endangered Species Act, attempt to identify, list, and protect threatened or endangered speciesSee U.S. Fish & Wildlife Service webpageConvention on International Trade in Endangered Species (CITES) prohibits trade in threatened or endangered species, whether animal, plants, or parts of animals or plantsEnvironmental ManagementPartly because of the regulatory web and partly for corporate social responsibility, many companies implement an environmental management system (EMS)52 - *Examples include ISO 14001, Responsible Care, and Smart WoodTest Your KnowledgeTrue=A, False = BNEPA applies only to federal agencies.The Clean Air Act applies to mobile and stationary sources of pollution. One goal of the Clean Water Act is to eliminate or limit discharge of pollutants into navigable waterways.Section 404 of the Clean Water Act (CWA) protects wetlands.52 - *Test Your KnowledgeTrue=A, False = BBoth RCRA and CERCLA establish a cradle to grave regulatory system for hazardous waste.Retroactive laws are always unconstitutional.Only the U.S. EPA may enforce the Clean Air Act or Clean Water Act.RCRA requires companies to track and monitor hazardous waste from creation through disposal or treatment. 52 - *Test Your KnowledgeMultiple ChoiceAn environmental impact statement must analyze: (a) The impact of the proposed action on the environment(b) Any expected adverse effects of the action (c) Practical and feasible alternative methods (d) All of the above (e) Both A and B only52 - *Test Your KnowledgeMultiple ChoiceA potentially responsible party may be: (a) A current owner of the facility(b) A former owner of the facility(c) The plant manager who arranged for the disposal of hazardous substances from the facility(d) The company that operates the facility(e) All of the above52 - *Thought QuestionGiven technological improvements in alternative energy (wind or solar power, biofuels), does a company have a social responsibility to use the best available technology?52 - *Anaerobic bioreactors for sludge digestion and methane production in Kiel, Germany