1. 46 - 1 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Chapter 45 Environmental Protection Business Law Legal, E-Commerce, Ethical, and International Environments

2. 46 - 2 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Environmental Protection Agency An administrative agency created by Congress to coordinate the implementation and enforcement of the federal environmental protection laws. –Broad rule-making powers –Adjudicative powers The EPA can initiate judicial proceedings in court against suspected violators of federal environmental laws.

3. 46 - 3 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman National Environmental Policy Act Federal statute that mandates that the federal government consider the adverse impact a federal government action would have on the environment before the action is implemented. –Created the Council on Environmental Quality. –Does not apply to action by state or local governments or private parties.

4. 46 - 4 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Environmental Impact Statement An environmental impact statement (EIS) must be prepared for all federal action that significantly affects the quality of the human environment. The purpose is to provide enough information about the environment to enable the federal government to determine the feasibility of the project. –The EIS is also used as evidence in court whenever a federal action is challenged as violating the NEPA or other federal protection laws.

5. 46 - 5 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Environmental Impact Statement (continued) EIS must: –Describe affected environment. –Describe impact on environment. –Identify and discuss alternatives. –List resources to be committed. –Contain cost-benefit analysis Subject to public review and comments. EPA decisions are appealable to appropriate U.S. court of appeals.

6. 46 - 6 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Air Pollution Clean Air Act (as amended) –A federal statute enacted in 1963 to assist states in dealing with air problems. –The Clean Air Act, as amended (1970, 1977, 1990), provides comprehensive regulation of air quality in the United States.

7. 46 - 7 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Pollution Sources Stationary Sources of Air Pollution Mobile Sources of Air Pollution Nonattainment Areas Toxic Air Pollutants

8. 46 - 8 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Sources of Air Pollution Stationary sources –States must be identified –Plans must be developed to reduce pollution Mobile sources –Emission standards set –EPA regulates pollution caused by fuel and fuel additives

9. 46 - 9 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman National Ambient Air Quality Standards The Clean Air Act directs the EPA to establish national ambient air quality standards (NAAQS) for certain pollutants. Standards are set at two levels: –Primary – to protect human beings –Secondary – to protect vegetation, matter, climate, visibility, and economic values States responsible for enforcement

10. 46 - 10 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Nonattainment Areas Regions that do not meet air quality standards. –Five categories, ranging from marginal to extreme. States must submit compliance plans. –Failure to develop and implement approved plan will cause loss of highway funds and limitations on new sources of emissions.

11. 46 - 11 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Water Pollution Comprehensive scheme of statutes and regulations to prevent and control water pollution. Federal Water Pollution Control Act (FWPCA) of 1948 (as amended): –Clean Water Act of 1972 –Clean Water Act of 1977 –Clean Water Quality Act of 1987

12. 46 - 12 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Point Sources of Water Pollution Sources of water pollution such as paper mills, manufacturing plants, electric utility plants, and sewage plants. Dischargers must keep records, maintain monitoring equipment, and keep samples of discharge.

13. 46 - 13 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Thermal Pollution Heated water or material discharged into waterways that upsets the ecological balance and decreases the oxygen content Sources subject to Clean Water Act

14. 46 - 14 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Wetlands Areas that are inundated or saturated by surface water or ground water that support vegetation typically adapted for life in such conditions Clean Water Act forbids filling or dredging of wetlands without permit from Army Corps of Engineers.

15. 46 - 15 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Safe Drinking Water Act Authorizes the EPA to establish national primary drinking water standards. Prohibits the dumping of wastes into wells used for drinking water. The states are primarily responsible for enforcing the act.

16. 46 - 16 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Ocean Protection Marine Protection, Research, and Sanctuaries Act –Extended environmental protection to the oceans. –Requires a permit for dumping wastes and other foreign materials into ocean waters. –Establishes marine sanctuaries in ocean waters and in the Great Lakes and their connecting waters.

17. 46 - 17 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Oil Spills Oil Pollution Act of 1990 requires oil industry to adopt procedures and contingency plans. The Clean Water Act authorizes the U.S. government to clean up oil spills and spills of other hazardous substances in ocean waters. –The government can recover cleanup costs from responsible parties.

18. 46 - 18 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Toxic Substances Chemicals used for agricultural, industrial, and mining uses that cause injury to humans, birds, animals, fish, and vegetation. Key federal laws: –Insecticide, Fungicide, and Rodenticide Act of 1947 (as amended in 1972) –Toxic Substances Control Act of 1976

19. 46 - 19 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Hazardous Waste –Solid waste that may cause or significantly contribute to an increase in mortality or serious illness or pose a hazard to human health or the environment if improperly managed Land Pollution –Pollution of the land that is generally caused by hazardous waste being disposed of in an improper manner

20. 46 - 20 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Toxic Substances Control Act Requires manufacturers and processors to test new chemicals to determine their effect on human health and the environment before the EPA will allow them to be marketed. EPA establishes standards. Requires stationary sources to control emissions. EPA can limit or prohibit manufacture and sale, or remove it from commerce.

21. 46 - 21 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Insecticides, Fungicides, and Rodenticides Requires pesticides, herbicides, fungicides, and rodenticides to be registered with the EPA. The EPA may deny, suspend, or cancel registration.

22. 46 - 22 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Land Pollution Resource Conservation and Recovery Act (RCRA) of 1976 –Federal statute that authorizes the EPA to regulate facilities that generate, treat, store, transport, and dispose of hazardous wastes. –States have primary responsibility for implementing the standards established by the act and EPA regulations.

23. 46 - 23 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Superfund Comprehensive Environmental Response, Compensation & Liability Act Administered by the EPA Gives the federal government a mandate to deal with hazardous wastes that have been spilled, stored, or abandoned.

24. 46 - 24 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Superfund (continued) The Superfund requires the EPA to: –Identify sites in the U.S. where hazardous wastes have been disposed, stored, abandoned, or spilled, and –Rank these sites regarding the severity of risk –The hazardous waste sites with the highest ranking are put on a National Priority List –The law provides for the creation of a fund to finance the cleanup of hazardous waste sites –Can order polluter or landowner to pay for cleanup

25. 46 - 25 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Radiation Pollution Emissions from radioactive wastes that can cause injury and death to humans and other life and can cause severe damage to the environment.

26. 46 - 26 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Nuclear Regulatory Commission –Licenses the construction and opening of commercial nuclear power plants. –Continually monitors the operation of nuclear power plants and may close a plant if safety violations are found.

27. 46 - 27 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman EPA Empowered to set standards for radioactivity in the environment and to regulate the disposal of radioactive waste. Regulates thermal pollution from nuclear power plants. Regulates emissions from uranium mines and mills.

28. 46 - 28 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Endangered Species Endangered Species Act –Federal statute that protects “endangered” and “threatened” species of animals. –The Secretary of the Interior is empowered to declare a form of wildlife endangered or threatened. –The act requires the EPA and the Department of Commerce to designate critical habitats for each endangered and threatened species. –The act prohibits the taking of any endangered species.

29. 46 - 29 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Federal Wildlife Laws Migratory Bird Treaty Act Bald Eagle Protection Act Wild Free-Roaming Horses and Burros Act Marine Mammal Protection Act Migratory Bird Conservation Act Fishery Conservation and Management Act Fish and Wildlife Coordination Act National Wildlife Refuge System Migratory Bird Treaty Act Bald Eagle Protection Act Wild Free-Roaming Horses and Burros Act Marine Mammal Protection Act Migratory Bird Conservation Act Fishery Conservation and Management Act Fish and Wildlife Coordination Act National Wildlife Refuge System

30. 46 - 30 © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman State Environmental Protection Laws Many state and local governments have enacted statutes and ordinances to protect the environment. States are entitled to set pollution standards that are stricter than federal requirements.