1. CHAPTER 39 ENVIRONMENTAL PROTECTION DAVIDSON, KNOWLES & FORSYTHE Business Law: Cases and Principles in the Legal Environment (8 th Ed.)

2. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 2 INTRODUCTION Environmental law constitutes an extremely complex, pervasive, and controversial area of the law. Environmental law constitutes an extremely complex, pervasive, and controversial area of the law. In the 1970’s the U.S. took the first steps in halting the destruction of the planet. In the 1970’s the U.S. took the first steps in halting the destruction of the planet. It did by statutory engraftments onto common law nuisance principles. It did by statutory engraftments onto common law nuisance principles. Nuisance laws prohibit interference with the rights of others. Nuisance laws prohibit interference with the rights of others.

3. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 3 THE ENVIRONMENTAL PROTECTION AGENCY Federal administrative agency. Federal administrative agency. Enforces federal environmental laws. Enforces federal environmental laws. Adopts regulations. Adopts regulations. Conducts research on pollution. Conducts research on pollution. Assist other governmental entities. concerned with the environment. Assist other governmental entities. concerned with the environment.

4. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 4 THE NATIONAL ENVIRONMENTAL POLICY ACT Was enacted as to encourage a productive and harmonious relationship between people and the environment. Was enacted as to encourage a productive and harmonious relationship between people and the environment. Viewed as a vehicle for promoting efforts to eliminate environmental damage. Viewed as a vehicle for promoting efforts to eliminate environmental damage. All federal agencies analyze environmental impact of their policies and actions to avoid environmental degradation. All federal agencies analyze environmental impact of their policies and actions to avoid environmental degradation.

5. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 5 An environmental Impact Statement is required when: An environmental Impact Statement is required when: – Agency proposes legislation, – Recommends any actions, – Undertakes any activities that may affect the environment. THE NATIONAL ENVIRONMENTAL POLICY ACT

6. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 6 The Environmental Impact Statement must: The Environmental Impact Statement must: – Describe anticipated impact of the proposed action – Describe unavoidable adverse consequences – Examine possible alternative methods to achieve goals – Distinguish between long-term and short-term effects – Describe irreversible and irretrievable commitments of resources that will occur if action implemented THE NATIONAL ENVIRONMENTAL POLICY ACT

7. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 7 Council on Environmental Quality. Council on Environmental Quality. – Responsible for ensuring the success of the EIS process. – Established by NEPA to advise the president. – Develops regulations covering EIS – Plays leading role in developing and recommending federal environmental regulations. THE NATIONAL ENVIRONMENTAL POLICY ACT

8. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 8 AIR POLLUTION Contaminants into the air fall into five different classes: Contaminants into the air fall into five different classes: – Carbon monoxide; – Particulates; – Sulfur oxides; – Nitrogen oxides; – Hydrocarbons. When hydrocarbons mix with nitrogen oxides, smog results. When hydrocarbons mix with nitrogen oxides, smog results.

9. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 9 AIR POLLUTION The Clean Air Act: The Clean Air Act: – Combats air pollution. – Sets standards for air pollution emissions. – Established atmospheric areas as well as air quality regions. – Called for development of state plans to implement ambient air standards. – Each state retained primary responsibility for ensuring the air quality within its borders.

10. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 10 AIR POLLUTION The 1970 Amendments gave EPA responsibility for establishing national ambient air standards. The 1970 Amendments gave EPA responsibility for establishing national ambient air standards. – Directed EPA to establish standards: Primary: necessary to protect the public health. Primary: necessary to protect the public health. Secondary: necessary to protect the public welfare. Secondary: necessary to protect the public welfare. – States must submit to EPA a state implementation plan (SIP). – Setting out how state plans to meet federal standards.

11. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 11 AIR POLLUTION The 1977 Amendments allowed delays in compliance in certain situations. The 1977 Amendments allowed delays in compliance in certain situations. The 1990 Amendments set new compliance dates: The 1990 Amendments set new compliance dates: – Title I: mandates overall reduction of emissions within six years. – Title II: strengthens tailpipe emissions. – Title III: requires EPA to set permissible emission standards.

12. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 12 AIR POLLUTION The 1990 Amendments. The 1990 Amendments. – Title IV: sets timetables aimed specifically at limiting emissions of nitrogen oxide. – Title V: sets permit system aimed at controlling emissions by major point sources. – Title VI: regulates CFCs. – Title VII: strengthens act’s civil and criminal investigation, record-keeping, and enforcement provisions. – Civil and criminal penalties for violating federal clean air laws.

13. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 13 WATER POLLUTION The Clean Water Act proposes to restore and maintain the chemical, physical, and biological integrity of nation’s waters. The Clean Water Act proposes to restore and maintain the chemical, physical, and biological integrity of nation’s waters. – Establishes goals and timetables for cleaning up the nation’s waterways. – Federal role takes precedence over the state. – Targets two areas for pollution control and regulation: point and nonpoint sources.

14. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 14 WATER POLLUTION The Clean Water Act: The Clean Water Act: – Point sources must comply with the applicable effluent limitations and must obtain/satisfy any and all permit. – Nonpoint sources remain exempt from both requirements, although they do have to comply with applicable state management programs.

15. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 15 WATER POLLUTION The Clean Water Act: The Clean Water Act: – Effluent Limitations: are set for the amount and kinds of pollutants that may be discharged into streams or rivers through point sources. – Water Quality Standards: derive from the designated uses of the navigable waters involved, as well as their use and value for navigation.

16. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 16 WATER POLLUTION The Clean Water Act: The Clean Water Act: – National Pollutant Discharge Elimination System: forces each point-source to obtain a permit and dictates prerequisite for obtaining a permit, by using it within a time frame.

17. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 17 WATER POLLUTION The Safe Drinking Water Act: The Safe Drinking Water Act: – Regulates water supplied by public water systems to home taps. – Establishes maximum contaminant levels (MCL’s) or, alternatively, require specific treatment techniques designed to reduce contaminants to acceptable levels.

18. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 18 WATER POLLUTION The Safe Drinking Water Act: The Safe Drinking Water Act: – Amendments: Develop a risk-based method to identify drinking water contaminants that could pose threat to health. Develop a risk-based method to identify drinking water contaminants that could pose threat to health. Require EPA to publish, list of contaminants that are known or anticipated to occur. Require EPA to publish, list of contaminants that are known or anticipated to occur. An additional list of such contaminants must be published every five years. An additional list of such contaminants must be published every five years. – States administer and enforce the federal law.

19. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 19 NOISE POLLUTION The Noise Control Act of 1972 is simple and straightforward. The Noise Control Act of 1972 is simple and straightforward. – Congress placed primary responsibility for controlling noise on state and local governments. – EPA must promulgate regulations necessary to protect the public health and welfare.

20. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 20 NOISE POLLUTION The Noise Control Act of 1972 established the Quiet Communities Act: The Noise Control Act of 1972 established the Quiet Communities Act: – Reinforces significant role state and local governments play in noise control. – Provides federal financial and technical assistance to state and local noise research. – Develops noise abatement plans. – Civil and criminal penalties are possible for violations.

21. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 21 LAND CONSERVATION AND POLLUTION Numerous laws prohibit pollution of public domain. Numerous laws prohibit pollution of public domain. The Toxic Substances Control Act addresses toxic chemicals and their impact on health and environment The Toxic Substances Control Act addresses toxic chemicals and their impact on health and environment – To develop data detailing effect of chemical substances and mixtures on health and environment. – To provide governmental authority to regulate chemicals that present unreasonable risk of injury. – To ensure the exercise of this governmental authority, to avoid impediment/unnecessary economic barriers.

22. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 22 The Federal Insecticide, Fungicide, and Rodenticide Act: The Federal Insecticide, Fungicide, and Rodenticide Act: – Aimed at protecting farmers. – Sale and use of pesticides. – All persons who distribute or sell pesticides must register them with the EPA. – A risk-assessment statute. – Sets out unlawful acts. – Establishes civil and criminal penalties. LAND CONSERVATION AND POLLUTION

23. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 23 The Resource Conservation and Recovery Act: The Resource Conservation and Recovery Act: – Encompasses all types of waste, including hazardous and toxic waste and waste generated by households. – Provides assistance to states for establishing programs for disposing of solid, nonhazardous waste. – Also establishes a system for regulating generation, transportation, storage and disposal of hazardous waste. LAND CONSERVATION AND POLLUTION

24. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 24 The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA): The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA): – The “Superfund” imposes strict liability on owner or operator of facility where emergency response actions must be taken to protect public health and environment. – Sites may be cleaned up with federal funds with costs later recovered from potentially responsible parties. LAND CONSERVATION AND POLLUTION

25. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 25 WILDLIFE CONSERVATION The Endangered Species Act protects: The Endangered Species Act protects: – Threatened or endangered species of wildlife – Both in the United States and abroad – Natural habitats

26. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 26 ENFORCEMENT AND REMEDIES EPA has aggressively enforced environmental laws. EPA has aggressively enforced environmental laws. Environmental laws are enforced by fines and/or imprisonment. Environmental laws are enforced by fines and/or imprisonment. Referrals included criminal an civil cases. Referrals included criminal an civil cases.

27. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 27 INTERNATIONAL ASPECTS Environmental regulation is on the rise around the world. Environmental regulation is on the rise around the world. Many foreign countries are plagued by pollution. Many foreign countries are plagued by pollution. European Union has adopted environmental protection measures. European Union has adopted environmental protection measures. NAFTA shows sensitivity to environment concerns. NAFTA shows sensitivity to environment concerns.

28. © 2004 West Legal Studies in Business A Division of Thomson Learning BUSINESS LAW: Cases & Principles Davidson Knowles Forsythe 8 th Ed. 28 INTERNATIONAL ASPECTS GATT involves environmental issues. GATT involves environmental issues. Kyoto Protocol requires industrialized countries to reduce their combined greenhouse gas emissions by at least 5.2% by 2008-2012 Kyoto Protocol requires industrialized countries to reduce their combined greenhouse gas emissions by at least 5.2% by 2008-2012 Executive order, decreed that the U.S. must factor environmental considerations into the development of its trade negotiation objectives. Executive order, decreed that the U.S. must factor environmental considerations into the development of its trade negotiation objectives.