LAW, BUSINESS, & SOCIETY

11th Edition

McGraw-Hill

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17-2

Learning Objectives Identify some of the ways market

incentives can be used to prevent and correct environmental problems

Evaluate particular environmental problems using the concepts of causation and correlation, cost-benefit analysis, future impacts, and identification of costs imposed

17-3

Learning Objectives Describe the National Environmental

Policy Act (NEPA) Identify duties of the Environmental

Protection Agency (EPA) Describe the uses of the Clean Air Act

(CAA), including its application to greenhouse gas emissions

Describe the uses of the Clean Water Act (CWA)

17-4

Learning Objectives Describe the legal issue involving the

reach of the CWA Identify some of the major federal laws

that address land pollution Discuss the purpose and effect of the

Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), commonly known as the Superfund

17-5

Learning Objectives Identify penalties and other

enforcement mechanisms under federal and state regulations

Describe some of the challenges to protecting a species under the Endangered Species Act

Describe the primary common law remedies for environmental damage

17-6

Learning Objectives Evaluate both the strengths and

weaknesses of a global process for addressing climate change

Give concrete examples of environmental degradation in the United States and globally

17-7

Market Incentives Prove superior to regulation in

preventing and correcting environmental problems

Cap-and-trade programs› Government sets a cap on the total

emissions of a pollutant› Issues credits to the most significant

emitters of the pollutant› Firms can buy credits from other low

emitting companies

17-8

Market Incentives Tax laws

› Encourage particular behavior through tax incentives

› Discourage particular behavior through additional taxes

Other incentives› Direct subsidies› Energy Department program to encourage

pollution-reducing technologies

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Ethical Business Decision Making Market forces are operating to reward

corporate responsibility Being environmentally irresponsible

could lead to negative publicity Economic growth and environment

protection are not mutually exclusive

17-10

Factors that Help Evaluate Regulations Cost-benefit analysis

› Environmental protection can be expensive Impact on future generations

› Generations to come will endure the burden of whatever choice we make

Proving causation› Issues of coincidence, correlation, and

causation are difficult to determine

17-11

Factors that Help Evaluate Regulations Investors

› Correction of an environmental problem requires funding

› Consumers and investors will have to pay if corporate America is required to invest in pollution control devices

Politics› Environmental protection in the U.S. is a

matter of science, social policy, and politics

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National Environmental Policy Act (NEPA) Promotes a clean and healthy

environment Council on Environmental Quality (CEQ)

› Conducts studies and collects information regarding the state of the environment

Environmental impact statement (EIS)› Includes the impact of federal legislation

and action on the environment and reasonable alternatives

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Environmental Protection Agency (EPA) Gathers information by surveying

pollution problems Conducts research on pollution

problems Assists state and local pollution control

efforts Administers federal laws directed to

environmental concerns

17-14

Regulation of Air Pollution Clean Air Act of 1990 (CAA)

› Sets air quality standards› States establish implementation plans to

achieve and maintain the standards Greenhouse gas (GHG) regulations

› Obama administration intends to curb GHG emissions via administrative rule making

› Coal-fired plants will be required to install carbon capture and storage (CCS)

17-15

Case: Clean Air Act Case

› Massachusetts v. Environmental Protection Agency

› 127 S.Ct. 1438 (2007)› Supreme Court

Issue› Plaintiffs alleged that EPA has abdicated its

responsibility under the Clean Air Act to regulate the emissions of greenhouse gases

17-16

Regulation of Air Pollution Non-GHG air-quality regulations

› EPA issued stricter standards governing pollutants like ozone, soot, and sulfur dioxide

› Cross-State Air Pollution Rule (CSAPR) Requires power plants in 28 states to install

new pollution controls Motor vehicle emission standards

› Regulations include GHG emission and fuel-efficiency standards

17-17

Regulation of Water Pollution Clean Water Act of 1972 (CWA)

› Designed to restore and maintain the chemical, physical, and biological integrity of the nation’s waters

Goals of CWA› Achieving water quality sufficient for

protection and propagation of fish and wildlife and for recreation

› Eliminating the discharge of pollutants into navigable waters

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Regulation of Water Pollution National Pollutant Discharge

Elimination System (NPDES)› Requires all dischargers to secure a permit› Permit holder must monitor its

performance and report the results to the state or the EPA

Covered waters› Waters that are covered by the act and

subject to EPA regulation is unclear

17-19

Case: Covered Waters Case

› Solid Waste Agency of Northern Cook County v. U.S. Army Corps of Engineers

› 531 U.S. 159 (2001) Issue

› Do the provisions of Section 404(a) confer federal authority over an abandoned sand and gravel pit that provides habitat for migratory birds?

17-20

Toxic Substances Control Act (TSCA) Identifies toxic chemicals, assess their

risks, and controls dangerous chemicals

Empowers EPA to review and limit or stop the introduction of new chemicals

Relies on a safe until proven dangerous presumption

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Resource Conservation and Recovery Act (RCRA) Addresses nonhazardous and

hazardous solid wastes Provides technical and financial

assistance to states and localities Prohibits future open dumping Ensures safe movement and disposal of

hazardous solid wastes Recycled hazardous materials are not

covered

17-22

Household Recycling Recycling turns materials into usable

resources Reduces dependence on new materials Extended producer responsibility

› Companies voluntarily taking on the costs of recycling the consumer packaging of goods

17-23

Superfund Comprehensive Environmental

Response, Compensation, and Liability Act of 1980 (CERCLA)

Enacted to identify and clean up abandoned hazardous waste sites

EPA or private parties can undertake cleanups

Responsible parties are strictly liable

17-24

Small Business Liability Relief and Brownfields Revitalization Act Dissatisfaction over CERCLA

› High percentage of Superfund dollars to administration expenses and litigation

› Slow remediation process at sites Brownfields Act of 2002

› Provides liability protection for prospective purchasers and contiguous property owners

› Authorizes increased funding for state and local programs

17-25

Penalties and Enforcement Under Federal Law Enforcement actions are available to

state and federal agencies Initially violators are warned and a

compliance schedule is prescribed Failure to comply leads to litigation and

civil/criminal actions› Injunction to prevent continued or future

violations› Monetary civil penalties and fines

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Penalties and Enforcement Under Federal Law

› Supplemental Environmental Projects (SEPs) Violator undertakes some environmental good

work or community service project› Imposition of criminal penalties› Imprisonment

Citizen suits› Individuals challenge government

environmental decisions› Frequently brought under the Endangered

Species Act (ESA)

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Case: Endangered Species Act (ESA) Case

› Cook Inlet Beluga Whale v. Daley› 156 F.Supp.2d 16 (D.C.D.C. 2001)

Issue› Plaintiffs filed a petition to list the Cook

Inlet Beluga Whale under the Endangered Species Act

17-28

Case: Endangered Species Act (ESA) Case

› Arizona Cattle Growers’ Ass’n v. Salazar› 606 F.3d 1160 (9th Cir. 2010)› District court

Issue› Plaintiffs argued that too large an area had

been designated for the protection of the Mexican spotted owl

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Endangered Species Act (ESA) Legal process for protection of species

is complicated and time consuming Expensive for citizens and government Number of endangered species

increased significantly in the recent years

17-30

Common Law Remedies Private nuisance

› Substantial and unreasonable invasion of the private use and enjoyment of one’s land

Public nuisance› Unreasonable interference with a right

common to the public

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Common Law Remedies Trespass

› Liability is imposed on any intentional invasion of an individual’s right to the exclusive use of his or her own property

Negligence Strict liability

› Crop dusting contaminating adjacent properties

› Improperly disposed toxic chemicals› Oil contaminating a water well

17-32

Global Climate Change Overall increase in surface and ocean

temperatures around the globe› Caused by the release of carbon dioxide

and other greenhouse gases Politics and science of global climate

change is controversial Physical features of the planet are

under rapid change

17-33

Kyoto Protocol Global emission reduction program to

stabilize greenhouse gases Annual climate conferences are held

under the auspices of the UN