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Environmental Compliance
The broad reaching impact of corporate behavior can adversely affect the environment. Unfortunately, corporate insiders seeking to maximize short term corporate gains in order the secure immediate personal reward are incentivized to sacrifice commitment to the environment.
There are a myriad of environmental laws at both the state and federal levels. Prior to federal intervention with regard to environmental regulations in the mid 1970s through the National Environmental Policy Act, environmental law was limited to common law doctrine, including trespass, nuisance, and interference with economic advantage.
Starting with NEPA at the federal level, the U.S. Congress passed a host of legislation regulating all facets of the environment, as shown in the table below.
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Law |
Purpose of Law |
Cite |
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NEPA |
The National Environmental Policy Act (NEPA) requires the federal government to consider environmental impacts in its decisions. The law called for preparation of environmental impact statements (EIS) that take into account the ecology and explain the adverse impacts of the federal decision. Public comment on environmental impacts is encouraged, and the adequacy of the EIS study may be challenged in court by citizen's groups. |
42 U.S.C. 4321 et seq. (1969) |
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RCRA |
The Resource Conservation and Recovery Act (RCRA) gives EPA the authority to control hazardous waste from the "cradle-to-grave." This includes the generation, transportation, treatment, storage, and disposal of hazardous waste. RCRA also set forth a framework for the management of non-hazardous solid wastes. The 1986 amendments to RCRA enabled EPA to address environmental problems that could result from underground tanks storing petroleum and other hazardous substances. |
42 U.S.C. 6901 et seq. (1976) |
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CERCLA |
The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), otherwise known as Superfund, provides a Federal "Superfund" to clean up uncontrolled or abandoned hazardous-waste sites as well as accidents, spills, and other emergency releases of pollutants and contaminants into the environment. Through CERCLA, EPA was given power to seek out those parties responsible for any release and assure their cooperation in the cleanup. |
42 U.S.C. 9601 et seq. (1980) |
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CWA |
The Clean Water Act (CWA) establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters. A precursor law was called the Federal Water Pollution Control Act, but the Act was significantly reorganized and expanded in 1972. "Clean Water Act" became the Act's common name with amendments in 1977.
Under the CWA, EPA has implemented pollution control programs such as setting wastewater standards for industry. EPA also sets water quality standards for all contaminants in surface waters.
The CWA made it unlawful to discharge any pollutant from a point source into navigable waters, unless a permit was obtained. EPA's National Pollutant Discharge Elimination System (NPDES) permit program controls discharges. |
33 U.S.C. 1251 et seq. (1972) |
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TFCA |
Tropical Forest Conservation Act (TFCA) enables grants to support activities such as conserving protected areas, improving natural resource management and supporting the development of sustainable livelihoods for communities that rely on forests. |
22. U.S.C. 2431 et seq. (1998) |
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CAA |
The Clean Air Act (CAA) is the comprehensive federal law that regulates air emissions from stationary and mobile sources. Among other things, this law authorizes EPA to establish National Ambient Air Quality Standards (NAAQS) to protect public health and public welfare and to regulate emissions of hazardous air pollutants. The Superfund Amendments and Reauthorization Act (SARA) of 1986 reauthorized CERCLA to continue cleanup activities around the country. |
42 U.S.C. 7401 et seq. (1970) |
Laws including the Clean Air Act, regulate airborne emissions, while the Clean Water Act regulates discharges through navigable waterways, and the Resource Conservation Recovery Act regulates hazardous waste from cradle to grave.
These laws protect more than just a matter of environmental aesthetics. They are broadly written to protect health and/or the environment. Accordingly, they can be applied to consumer products that contain hazardous waste, or to even large supermarkets, whose massive parking lots cause toxic runoff into streams and lakes.
Recognizing that the government itself lacks the resources to enforce compliance of these laws, many of the environmental statutes have citizen suit provisions which allow private individuals to seek recourse as if they were an attorney general. Naturally, individuals seeking recourse must -- as the Supreme Court has counseled -- have "injury in fact," meaning that they have sustained some semblance of personal harm.
Because environmental laws can be broadly applied, to some degree they overlap the workplace protection promulgated by the Occupational Safety and Health Administration under its Occupational Safety and Health Administration's rule making authority.
For shareholders, a corporation's failure to comply with environmental law may lead to a long term contingent liability for the corporation.
For workers, a corporation's failure to comply with environmental law may lead to workplace hazard. For consumers, a failure to ensure that products are manufactured without hazardous substances that are likely to be released into the environment can pose health hazard for public citizens. A corporation's failure to comply with environmental law can increase pollution, can lead to health hazard and property damage.
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