Business Law Chapter 2

– Common Law Actions. – State and Local Regulation. – Federal Regulation.

• Tort Law • Government Subsidies • Emission Charges • Marketable Discharge Permits • Direct Regulation

• use of one’s property causing annoyance, inconvenience or discomfort to another. Public Nuisance – affects the community at large Private Nuisance – disturbs one’s neighbors only

the legal status to file a lawsuit – Public Nuisance – Government – Private Nuisance – Individual (s)

• Under a government subsidy system, the government pays pollutants to reduce their emissions – Tax breaks, low-interest loans, grants for pollution control devices

• Government charges a flat fee for every unit of pollutant each polluter discharges

• Government issues permits (license) to polluters authorizing the discharge of pollutants.

• The government enacts a comprehensive set of regulations designed to protect the environment by improving the air and water quality.

– Technology forcing: standards are established based on health considerations and industries are forced to develop technology within these standards – Technology Driven: standards are established based on existing technology with hopes to better control pollution based on the limits of the existing technology

• An administrative agency created by Congress to attack all forms of pollution and coordinate the implementation and enforcement of the federal environmental protection laws. – Broad rule-making powers – Adjudicative powers • The EPA can initiate judicial proceedings in court against suspected violators of federal environmental laws.

• Federal statute that mandates that the federal government consider the adverse impact a federal government action would have on the environment before the action is implemented. – Created the Council on Environmental Quality. – Does not apply to action by state or local governments or private parties.

• An environmental impact statement (EIS) must be prepared for all federal actions that significantly affect the quality of the human environment. • The purpose is to provide enough information about the environment to enable the federal government to determine the feasibility of the project. – The EIS is also used as evidence in court whenever a federal action is challenged as violating the NEPA or other federal protection laws.

• An EIS is required when 3 elements are present (threshold considerations): – The action is federal • Grand of a license, issuance of a loan, or lease of property by federal agency – Major Activity, i.e. requires substantial commitment of resources – Activity must has substantial impact on the human environment • Environmental impacts: noise, high traffic & congestion, burden of public facilities like sewage & transportation and increased crime & illegal drugs. • Non-Environmental impacts: loss of business profits

• EIS must: – Describe affected environment. – Describe impact on environment. – Identify and discuss alternatives. – List resources to be committed. – Contain cost-benefit analysis • Subject to public review and comments. • EPA decisions are appealable to appropriate U.S. court of appeals.

• Clean Air Act (as amended) – A federal statute enacted in 1963 to assist states in dealing with air problems. – The Clean Air Act, as amended (1970, 1977, 1990), provides comprehensive regulation of air quality in the United States.