52-1 Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Administrative Law The Federal Trade Commission Act and Consumer Protection Laws Antitrust: The Sherman Act The Clayton Act, The Robinson-Patman Act, and Antitrust Exemptions and Immunities Employment Law Environmental Regulation Regulation of Business P A R T

52-3 Environmental Regulation PA E TR HC 52 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 Environment

52-4 Learning Objectives Explain when an environmental impact statement must be prepared and the information it must include Discuss major provisions of the: Clean Air Act, Clean Water Act, and hazardous waste laws Describe the impact global climate change may have on business

52-5 Agency Enforcement Environmental Protection Agency, Dept. of Justice (DOJ), and Occupational Safety & Health Admin. (OSHA) work together to implement & enforce lawEnvironmental Protection Agency –Agencies issue regulations pursuant to Administrative Procedure Act to support and implement federal laws

52-6 Definition of Pollution The EPA defines pollution as any substance in the environment that endangers human welfare Toxic substances in pollutants linked to: Carcinogenesis Mutagenesis Teratogenesis Behavior disorders Bald eagle faced extinction due to mutagenic effect of DDT

52-7 State & Tribal Regulation States and Tribes may enact laws to regulate the environment within their jurisdiction –State laws implemented by state agencies –State law may not conflict with federal law Muscogee Nation Tribal Police Officer

52-8 National Environmental Policy Act NEPA does not deal with pollution control –Applies only to government agencies when actions are planned and subject to federal approval of permits, loan guarantees, federal loans or insurance, or other federal involvement Requires federal agencies to prepare an environmental impact statement (EIS) for major Federal actions significantly affecting quality of human environment

52-9 The EIS An Environmental Impact Statement must analyze the: –Impact of proposed action on the environment –Any expected adverse effects of the action –Practical and feasible alternative methods –Any irreversible effects the action might generate See: EISs With Open Comment/Wait PeriodEISs With Open Comment/Wait Period

52-10 Goal of the Clean Air Act is to improve National Ambient Air Quality through standards (NAAQS) Focus of the law is controlling pollution from mobile sources and stationary sources by issuing permits to polluters Act enforced by agency action and citizen suits against polluters who fail to obtain a permit or violate permit limitations Clean Air Act

52-11 State environmental agencies issue permits to companies that emit pollutants –Permits specify type of pollutants allowed and amount for each type –New sources treated more stringently than older facilities Clean Air Act Implementation Pulp and paper mill; point source pollution

52-12 Global Climate Change Clean Air Act specifically supports U.S. obligations under the Montreal Protocol, an international agreement to reduce air pollution and ozone-depleting substances U.S. signed the Kyoto Protocol (next step after the Montreal Protocol of the Convention on Global Warming ), but has not yet ratifiedKyoto Protocol Convention on Global Warming

52-13 Clean Water Act Goals: –Ensure that navigable water is safe for drinking, fish & wildlife protection, and recreational use –Eliminate or limit discharge of pollutants into coastal and inland waterways Point source pollution

52-14 NPDES Permit Program Every industrial or municipal facility must apply for a National Pollutant Discharge Elimination System (NPDES) permit to discharge pollutants into inland waterways or oceans –Total Maximum Daily Loads (TMDLs)Total Maximum Daily Loads (TMDLs) A state environmental agency issues NPDES permits based on state determinations about the quality of specific water bodies

52-15 Violating Water-Related Laws Federal and state environmental agencies may enforce the Clean Water Act and related programs with civil fines and/or criminal penalties, including prison for those who knowingly violate law Citizens also may file suits to remediate or compensate for environmental harm

52-16 Wetlands Section 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 States Endangered green pitcher plant found in some southern wetlands

52-17 Liability for Oil Spills 1989 Exxon Valdez disaster prompted the Oil Pollution Prevention, Response, Liability and Compensation Act of 1990Exxon Valdez Spill-related lawsuits consolidated into Exxon Shipping Co. v. Baker, reaching U.S. Supreme Court in 2008Exxon Shipping Co. v. Baker –Issues: were compensatory damages preempted by the Clean Water Act and was punitive damages award excessive as a matter of law –Ruling: no preemption, but case remanded to remit the punitive damages award

52-18 Liability for Oil Spills The 2010 BP Deepwater Horizon oil rig explosion prompted a new look at current oil pollution and offshore drilling regulationsBP Deepwater Horizon –The 1989 Exxon Valdez disaster still impacts the Alaskan coast Oil-soaked brown pelicans and Kemp’s Ridley Sea Turtle await cleanup and rehabilitation

52-19 Resource Conservation and Recovery Act RCRA authorizes EPA to regulate transport, storage, monitoring, treatment, and disposal of solid and hazardous wastes –Tracking from creation of waste through disposal or treatment (cradle to grave) Any person who fails to follow regulations strictly violates RCRA Toxic waste, bankrupt company

52-20 CERCLA Comprehensive Environmental Response, Compensation, and Liability Act authorizes EPA to ensure the clean-up and remediation of hazardous waste sites Also authorizes EPA to assign liability for clean-up costs to any (or all) potentially responsible party (PRP) –Generators of hazardous substances, current or former owners or operators of facility, arrangers or transporters for treatment or disposal of hazardous substances

52-21 Pesticide Regulation The Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) regulates use of pest control chemicals in process of food growth through food packaging, to minimize presence in consumable foods

52-22 Toxic Substances Control Act The Toxic Substances Control Act (TSCA) requires anyone planning to sell or market chemicals to first determine effect on human health and the environment Gives EPA authority to track, investigate, or ban industrial chemicals currently produced or imported into U.S.

52-23 Conservation Efforts Several laws, such as the Endangered Species Act, attempt to identify, list, and protect threatened or endangered species –See U.S. Fish & Wildlife Service webpageU.S. Fish & Wildlife Service –588 species of U.S. animals are listed and 794 species of U.S. plants are listed as of Jan The ESA provides for habitat recovery plans and species recovery plans

52-24 International Wildlife Law The Convention on International Trade in Endangered Species (CITES) prohibits trade in threatened and endangered species, whether animal or plants, or parts of animals or plantsConvention on International Trade in Endangered Species Illegal wildlife parts and products confiscated by U.S. agents

52-25 Environmental Management Partly because of the regulatory web and partly as corporate social responsibility, many companies implement an EMS or environmental management system Types of EMS systems include ISO 14001, Responsible Care, and Smart WoodISO Responsible CareSmart Wood

52-26 Thought Question Given technological improvements in alternative energy (wind or solar power, biofuels), does a company have a responsibility to use the best available technology? Anaerobic bioreactors for sludge digestion and methane production in Kiel, Germany