Select Page

Environmental Regulation of Business
Rutgers University, Camden School of Law
Wise, Neil

                                                                   I.            Environmental Regulation of Business
                                                                                                                                II.            Profs. Miano & Wise
                                                                                                                                                    III.            Spring 2010
 IV.            Introduction to Environmental Law
·         What environmental lawyers do
o    Compliance counseling
o    Respond to agency inspections
o    Rulemaking
o    Lobbying
o    Litigation
o    Permitting
·         Environmental law
o    Laws have a basis in either:
§ Protection of environment
§ Protection of human health
o    Endangered Species Act (ESA) – Protects endangered/threatened species
o    Clean Air Act – limits discharges into the air
§ Probably the most complicated environmental statute
o    Unintended consequences – water regulation: let’s burn it instead! -> air emissions-> air regulation -> scrubbing, then dumping the crud -> waste problem
o    OSHA – regulates work exposures
o    Substance-specific regulations –
§ e.g. RCRA – cradle to grave regulation of hazardous waste from “point of generation”
§ Toxic Substances Control Act (ToSCA)
·         Requires registration + notification to manufacture/use certain chemicals
·         e.g. PCB – chemical with incredible insulation policies; asbestos
§ Federal Pesticide, Fungicide, Rodenticide thingy Act
o    Superfund – retroactive liability: the person who made the mess when it was legal is now responsible for cleaning it up
§ Joint and several liability
o    Emergency Planning and Community Right to Know Act
§ If you use/dispose of certain types of chemicals in certain amounts, it must be reported to the federal government
§ Precipitated by Bhopal disaster in India
·         Agencies:
o    EPA
o    State DEPs/EPAs
o    Bureau of Land Management (Interior)
o    Department of Fish and Wildlife (Interior)
o    Agencies put out guidance on interpetation of statute or how they will implement it
·         Statutory interpretation: 3 methods:
o    Intentionalism
o    Textualism
o    Purpose
·         BedRoc Limited, LLC v. United States
o    Government gave away land grants (1919 Pittman Act), retained rights to “valuable minerals”
o    Dude sold sand/gravel from his land, US claimed these were valuable minerals
o    Court looked at statutory language – sand/gravel is a mineral, but not valuable
o    So dude wins
o    Dissent: language is not clear, so intent and policy should be examined
·         Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc.
o    Clean Air Act: EPA used “bubble” to regulate factories with multiple buildings instead of regulating each mini-source
o    This case is important for the analysis
o    Is statutory language clear? If so, you’re done
o    If language is not clear or leaves room for agency to improvise, then a different analysis applies:
                                       i.            Is agency’s interpretation a permissible construction of the statute?
                                     ii.            Was it abitrary and capricious or manifestly contrary to statutory language?
                                    iii.            Court gives deference to the agency’s interpretation because the agency, like Congress, is part of a political branch
   ·            NEPA – National Environmental Policy Act
o    Signed in 1970 by Tricky Dick
o    Short act, huge impact
o    4332 – operative provision
·         All agencies of federal gov’t shall… basically, any time an agency takes a major action (including recommendations, policies, etc.) that significantly affects quality of human environment,
·         Agency must undertake detailed analysis and provide environmental impact statement (EIS) (inc. adverse effects and alternatives)
o    Teleco Dam case – huge dam proposed, NEPA kicked in because federal government was permitting it. Tiny endangered fish found.
o    Can also be triggered by federal funding
o    Calbert Cliffs case – NEPA is a procedural, not substantive law
o    First step: EA (environmental assessment) – preliminary study when something is a major federal action, determines whether it will ave significant environmental impact
·         FOSI – finding of no significant impact – lawsuits often happen after this
o    ROD (record of decision)
o    Then EIS
o    Then public comment period (moratorium)
Delegation – when the federal government delegates responsibility for enforcement to the states and local agencies
State must have its own legally enforceable program
Cannot be conflicting provisions in state law
Must be state enforcement program up to snuff
Result?
State becomes primary enforcer. If state sucks, EPA can step back in
Overfiling – EPA can file case on top of the state’s
States get federal money
    V.            Clean Water Act
·         REFUSE Act – 1899 – meant to protect navigability
·         1948 – changed focus from navigation to water quality
·         1972 – existing laws strengthened and renamed Clean Water Act, strengthened again in 1987
o    Imposes limits on discharges into “waters”

locks it in many places (and at the federal level)
·         TMDL – total maximum daily load
o    Applicable when discharges are under control and the water still sucks (impaired water)
o    303(d) requires states to look at all waters and identify which ones are impaired
·         Listing is called a 303(d) list
o    Once a stream is impaired, states must establish TMDL – what is the maximum level it can accept and NOT be impaired?
Looks at both point and non-point sources
o    303(d) – impaired waters – can be impaired for one or more things
Look at all different sources, allocate the maximum load among them
·         Section 309 – Enforcement
o    Many ways for federal gov’t to get civil penalties – suits, administrative orders, etc.
o    Criminal penalties
·         Monetary
·         Imprisonment
·         Depends on level of offense, how many offenses, degree of knowledge, degree of harm
·         Section 311 of Clean Water Act – covers discharge into waters
o    Owner/operator of facility/vessel liable
o    SPCC – spill prevention contingency and countermeasure program – geared towards facilities with tanks of a certain number/size, different for above and below ground tanks
o    Something inspectors always look for, easy violations
·         Section 404 – prohibits discharge of fill/dredged materials into waters – defined to include many wetlands
o    Wetlands tend to absorb pollutants, aid in flood control
o    Administered by Army Corps. Of Engineers, not EPA
o    Corps. tends to clash with EPA because Corps. likes to build stuff
o    Wetlands – defined by Army Corps. manuals
o    Incidental fallback – allowed
o    Different permits:
§ Individual permit – adjudicative – applies to individual case only, very difficult and time-consuming to get
§ General permit (nationwide permit) – rulemaking – automatic permit if you comply with the conditions (with possible notice provisions)
§ Usually used because it’s easier
§ Has categories for utility crossings, road crossings, etc.
o    Types of nationwide permits:
§ Minor road crossings over streams
§ Utility crossings