Environmental Law & Policy
Kristina Daugirdas, Winter 2015
Introduction
History
Lazarus, Greening of America and Graying of U.S. Environmental Law
Pre-1970s, no strong federal laws; just state efforts and CL property law / tort doctrines
NEPA (1970): procedural requirements for fed agency decision-making: environmental assessments
Media Statutes: CAA (1970), CWA (1972), ESA (1973):substantive controls on pollution and endangering animals
Based on demanding environmental norms, not economic feasibility – focused on technology-forcing to eliminate pollution / reduce risks
E.g., Tough CAA NAAQS, CAA fishable / swimmable goals, etc. and tight deadlines
Pollution Statutes:
TSCA, RCRA : comprehensive prospective regulations
Technlogy-based, health-based w/ some cost considerations
CERCLA: hazardous substance liability
Cleanup haz waste sites / assign responsibility for costs
Regulatory Reform:
Reagan deregulation efforts met w/ public disapproval and more specific statutory amendments, taking discretion from agencies to achieve legislative goals
1990 CAA amendments embraced market-based regime for acid rain, but most statues remaned in command-and-control form
Greening of other laws: administrative law, tort liability, property law, corporate liability, bankruptcy rules, and civil rights law
Environmental law boom: CERCLA
Policy Considerations
Political dynamics impact on policy formation
E.g., CAA grandfathers in old sources (less stringent controls); but controls for new sources disincentivizes updating dirty facilities (so more pollution?)
Role of administrative agencies in deciding priorities / values
Role of courts in interpreting / enforcing policy
20 year dry spell for Congresional action: ineffective laws remain that way; state of art laws (e.g., cap and trade) developing in other countries
Setting Allowable Pollution Levels / Standards
Pollutant characteristics
Threshold pollutant: harmful only at certain level
Compare w/ pollutants that are harmful in all quantities
Dose-response curve uncertainty (esp. at low levels)
Linear? Non-linear?
Extrapolation from known data points?
Harm targets: humans, agriculture, non-human lifeforms like plants / animals?
Secondary effects:
Cure worse than disease – e.g., substitute chemicals worse than originals
Pollute other media – e.g., desposit waste collected from scrubbers elsewhere
Allowable levels
Cost Benefit Analysis (CBA)
Set std where MBA = MCA
But hard to monetize costs / benefits – e.g., lives
Rights-based perspective: people should be pollution free (but doesn’t help set standard?)
Science-driven perspective:still involves value judgments – e.g., acceptable risk, harm, uncertainty
Pollution sources: stationary or mobile and which sould be regulated?
Regulatory Options
Emissions limitations (per unit emissions)
Doesn’t cap total emissions
Doesn’t control source quantity / distribution
Regional concentrations; may locate in disadvantaged communities (pollution v. job benefit tension)
Hotspots (if doesn’t disperse) make thresholds hard to achieve
Emissions cap (total emissions ceiling)
Doesn’t inform burden allocation; but prevents hotspots
Cap and trade
Allocate by market process
Hotspots?
But geographical limits hurt efficacy (min # mkt players)
Firm cap
Allows differential reductions:firms will reduce until more expensive than buying permit
Gov’t revenue?
Pollution tax (tax per unit production)
Reduce until more expensive than tax
Change tax based on pollution quanities?
Doesn’t control hotspots
Gov’t rev?
Political non-starter (but tax and trade also a cost…)
Environmental Worldviews / Perspectives: Nature-centered, Human-centered & Economics
Human-centered v. Nature-centered
: protect nature b/c humans value it – e.g., health, wealth, aesthetics, spirituality
: protect nature for its own sake; have obligation for other life-forms
Twain, Was the World Made for Man?
Encourages humility, given how profoundly small a part humankind has played in long history of earth
Leopold, The Land Ethic (nature-centered)
Ethic, ecologically, is a limitation on freedom of action in struggle for existence; a mode of guidance for meeting ecological situations so new or intricate…that the path of social expediency is not discernible to average individual
Community has interdependent parts, including soils, waters, plants, animals: the land
Affirm rights of natural resources / animals to continued existence – “biotic right”
A thing is right when it tends to preserve integrity, stability, and beauty of biotic community
Cautionary examples – e.g., deterioration of New Mexico grazing lands from overuse
Conservation based solely on economic self-interest will fail
Taylor, Respect for Nature: Theory of Environmental Ethics (nature-centered) (32)
Humans are members of earth’s community of life; all species are integral parts of interdependent system and survival depends on maintaining these relations; all organisms are teleological centers of life (each has its own purpose); humans not inherently superior
Decision-making / policy roadmap (competingclaims / priorities)
Self-defense, principles of proportionality, minimum wrong, distributive justice, and restitutive justice
Self-defense: can protect self against harmful organisms (so not exact equality)
Basic (essential to existence for all) v. non-basic interests (less essential requirements for individual development)
Basic requirements of all organisms trump non-basic requirements for other organisms except when rational, enlightened people agree otherwise
Resources vital to basic interest should be shared equally by all except where so doing would conflict w/ protecting those vital interest; then nobody is required to self-sacrifice (e.g., can consume animals for food)
Restitution principle requires compensation for harm – e.g., setting aside wilderness areas for animals to thrive in their natural conditions
Does Taylor’s framework lead to extreme outcomes?
E.g., tension b/t curing oneself of bacterial disease and intrinsic value of bacterial survival
Other biocentric views: deep ecology, ecofeminism (linking patriarchal societies w/ environmental destruction); vegetarianism (compare Taylor who views all lifeforms as equal and Singer who ranks species – OK to eat lower life forms, but not higher ones)
Nature-centered regulations
Weigh non-human harm more heavily
If harm, find ways to compensate for it
Large margin of safety of account for inherent uncertainty
Intergenerational equity, s o avoid irreversible decisions / pollutions
Economics
Descriptive economics is “value neutral,” but still assumes self-interested decision-making, so very human-centric
Wilderness = luxury good?
Tension from squeezing
n of individual preferences) decision-making
E.g., EPA administrator needs to implement values underlying statutes, not just mechanically balance interests
Viewing citizens as consumers demeans the public law-making process – e.g., constitutional rights can’t be derived from customers WTP
Economics can’t capture value of non-market goods and doesn’t fully capture social preferences / ideals of citizens
E.g., Sierra Club v. Mineral King (Disney attempt to lease Mineral King Valley) – students like skiing, but as public-spirited citizens, would rather have area as Sequoia National Park
Economics / CBA may play a role in informing deliberative component of environmental regulations, but it should not drive policy-making
CBA best on case-by-case basis, but lack of data renders process flawed
Presumably some role in setting standards, tailoring regulations, etc.
But don’t confuse economic goals w/ social goals
Environmental Policymaking & Politics
State v. Federal Regulations
Federalism (state-centered) arguments:
Tailor policies to local preferences / circumstances
Efficiency of small administrative agencies
Local support for local decisions
States can be laboratories for experimentation
Different states might have different optimal pollution levels (given different abatement costs / reductions)
Federal arguments:
Everyone has right to minimum pollution levels – paternalism?
Concentration of expertise, money, resources, etc.
Economies of scale
Collective action / free-rider problems causes state paralysis
Uniform standards for provide certainty for businesses
(But many statutes just provide floors)
Corrects cross-border externalities
Prevents race-to-bottom phenomenon
Revesz, Rethinking the Race to the Bottom Rationale of Fed Environmental Regs (248)
RTB justifications:
Competition among states to attract businesses leads to sub-optimal environmental standards
Like PD, b/c rational dominant strategy leads to worse outcome for all – always choose to lower stds if no cooperation
Uncertainty about other state’s behavior or optimal welfare level might exacerbate RTB
Fed stds create floor and permit interstate cooperation
RTB criticisms:
States / industries also compete to attract people who may desire a clean environment, so ultimately states should find the right balance of environmental regulations to optimize environmental quality, jobs, education, taxes, etc. based on citizen preferences
Interstate competition not inconsistent w/ welfare maximization
If RTB, forcing stricter environmental regulations may cause states to compete in other ways – e.g., reducing social services – to attract firms, still resulting in suboptimal public welfare