The Impact of the EPA on Business

Business Regulations

• Identify one agency, bureau or department within the federal government responsible for upholding regulations that impact business operations. A few examples are the Environmental Protection Agency (EPA), Internal Revenue Service (IRS), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) or Department of Commerce. Research and explain the purpose of the agency, bureau and how it directly impacts business.

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ANSWER

The Impact of the EPA on Business

Introduction

The United States federal government has several bureaus and agencies set up to enforce regulations which affect business operations in the states. One of the agencies is the Environmental Protection Agency, tasked with the protection of the environment, and the health of the people, by creating and implementing laws and regulations which are mostly based on Congress laws. It is not part of the US Cabinet, even though its head (Administrator) has the rank and power of a Cabinet member.

Operations of the EPA

The EPA has its capital at Washington, with many laboratories in the regions that it operates. It carries out assessments of the environment, conducts research on ways to protect the environment, and carries out education on environmental maintenance. EPA’s basic duty is to enforce and sustain the set national standards of environmental regulations, in consolidation with the local and state authorities. It does not, however, operate by itself. The agency delegates some duties (authorizing, overseeing and enforcement) to the state authorities and also the tribes that are recognized by the federal government. The Environmental Protection Agency has various enforcement powers. These include sanctions, enforcing fines, and other penalties. It also consolidates its efforts with companies and the government, to coordinate programs that prevent or minimize environmental pollution and conserve energy.

Other EPA duties include the following

1. Minimize the effects of climate change and creating regulations to safeguard the quality of air.
2. To protect the waters of the United States.
3. To coordinate the cleaning up of the environment in communities, and water bodies.
4. To ensure that chemicals used by industries do not pose a threat to the environment.
5. To conduct the issuing of permits to businesses, and also enforce actions on any companies that do not comply.
6. Provision of loans and grants to municipalities or state governments, for financing conservation efforts and programs.
7. To give guidance on environmental regulations creation.
8. To carry out research on the risks facing the environment, and establish control measures to counter them.

The duties and mandate of the Environmental Protection Agency are based on the fact that the health of citizens and that of the environment go hand in hand. Protecting the environment results in the upholding of human health. The agency tries to achieve sustainability, by pushing for the protection of the environment and that of the citizens, concurrently. All the efforts of the EPA focus on increasing the benefits of a healthy environment, to the citizens and businesses, and to foster the advancement of technology required to protect the environment.

Impact on Businesses

The operations of the Environmental Protection Agency have direct impacts on the running of businesses in the United States. For instance, the agency creates Acts and regulations controlling the amount of pollution that goes to the environment. An example of such an Act is The Clean Water Act of 1972, which put a ban on the dumping of industrial wastes and wastewater in waterways. It also established a system for issuing permits for dumping to industries and other facilities. Businesses are therefore forced to abide by this Act, controlling the disposal of their effluent, to avoid the revoking of their dumping permits. Permits issued to companies and other industrial facilities are canceled whenever a company surpasses the wastewater levels put in place by the Environmental Protection Agency, and their cancellation results in the closure of the industry. This could result in an increase in the operational costs of a business, to ensure proper waste disposal.

Another regulation created by the EPA is The Clean Air Act of 1972. This Act empowered the agency to put in place standards for the main air pollutants (Sulfur dioxide, lead, carbon monoxide, nitrogen dioxide, particulate matter, and ozone), regulating the amounts of these substances that can be released into the environment by industries and businesses, generally. Companies, therefore, have to abide by these set standards, by employing measures such as air purifiers, using fuel-efficient machinery, planting trees, using catalytic converters, and use of renewable energy. The Acts put in place by the Environmental Protection Agency have ensured that the United States has one of the best and safest air and land environments.

Every manufacturing company utilizes raw materials to produce finished products. Most of these are naturally occurring resources, such as timber and minerals. Regulations put in place by the Environmental Protection Agency require these industries to replenish what they take from the environment. For instance, a farm dealing with the sale of Christmas trees is required to replant trees after taking one from the ground, to safeguard forests. The agency also places a regulation on companies that use minerals in their production. These companies have to conduct land upgrading, after mineral extraction. Open holes cannot be left on the ground. These regulations increase the cost of raw materials and the cost of efficient transportation of those materials.

The EPA safeguards navigable waterways from pollution. Businesses carried out on waterways and water bodies have to ensure that their activities do not harm the environment. An example would be, a freight company transporting petroleum and other liquid commodities. The company has to ensure that there is no oil spillage that occurs. This may also result in an increase in operational costs of the company. A very recent case of costs incurred by a business as a result of pollution regulations is the case of the 3M Company of Minnesota, which was sued for water pollution and had to pay $ 850 million dollars to end the lawsuit.

Conclusion

The operations of the Environmental Protection Agency are largely beneficial to the environment. However, businesses should put in place proper strategies and plans to minimize the costs that may emanate from environmental conservation laws imposition.

References

EBSCOhost article: Sustainability and the U.S EPA.

The Wall Street Journal articles: https://www.wsj.com/articles/AP29086b5da1a542ee9980d054259894a5?mod=searchresults&page=1&pos=10 and https://www.wsj.com/articles/epa-sets-plan-to-remove-radioactive-waste-from-missouri-dump-1517508064?mod=searchresults&page=1&pos=12

CNN article: http://money.cnn.com/2018/02/20/news/companies/3m-minnesota-environmental-settlement/index.html