CHAPTER 27 – ENVIRONMENTAL LAW
TRUE/FALSE
1. The cost-benefit trade-off is particularly complex in environmental issues because those who pay the
cost often are not the ones who receive the benefit.
2. Weste, Inc. decided to expand by building a $50 million manufacturing facility. The expansion is not
regulated or approved by the government. Nevertheless, Weste must prepare an environmental impact
statement.
3. Local regulation is more effective than state or federal regulation in controlling air pollution.
4. Armand Industries is producing a foul-smelling odor as a by–product of its factory’s operations.
However, the emission is not harmful to the health of those exposed to it. Armand would be subject to
a primary national ambient air quality standard established by the EPA.
5. A Japanese company operates a ship called the Kinia. If the Kinia sails in U.S. waters, it must comply
with the standards set by the Oil Pollution Act of 1990.
6. Cincy, Inc. is building a $20 million dollar addition onto its distribution facility. To build the facility,
Cincy must fill in two acres of wetlands. Under the Clean Water Act, Cincy must obtain a permit
before filling in the wetlands.
7. In 2005, the EPA set standards for soot emissions from buses and power plants that were
recommended by its own Scientific Advisory Committee.
8. TriColor, Inc. purchased a piece of land from HBC, Inc. Hazardous waste was subsequently
discovered on the land. Even though TriColor did nothing illegal, it may be liable under CERCLA for
the cleanup costs.
9. Researchers have found that the EIS process generally does not have a beneficial impact on the
environment.
10. An Environmental Impact Statement must be prepared for every major federal action that significantly
affects the quality of the environment.
11. A person who violates the Clean Water Act can face possible imprisonment in addition to other
penalties.
12. In 2008, then-President George W. Bush reached an agreement with other world leaders to cut
greenhouse gases in half by 2028.
13. The prevention of significant deterioration (PSD) program was developed to prevent deterioration in
air quality that would create health problems for those affected.
14. We Care, a nonprofit environmental organization, believes that Quanaco is violating the Clean Air
Act. The EPA has not taken any action against Quanaco. We Care can file a citizens’ suit against the
EPA.
15. Truan, Inc. has decided to market a new pesticide. Truan must register the pesticide with the EPA.
MULTIPLE CHOICE
1. The Environmental Protection Agency (EPA) was created by Congress to:
a.
consolidate environmental regulations under one agency.
b.
protect corporate investors.
c.
prevent conflicts between the Departments of Commerce and Interior.
d.
eliminate discrimination.
2. Under the Clean Air Act:
a.
states and the EPA were to act as partners wherein the individual states would formulate
State Implementation Plans to meet primary and secondary standards created by the EPA.
b.
the EPA formulated primary and secondary standards for air pollution; however, the
individual states were not required to comply with these standards if they already had
reasonable state statutes or regulations in place.
c.
the states were required to follow the guidelines established by the EPA and did not have
the authority to create their own state plans for implementing the federal standards.
d.
state laws or regulations preempt or take precedence over the guidelines promulgated by
the EPA.
3. What prevents the market system from achieving a clean environment on its own?
a.
Externalities.
b.
Inefficiently managed business.
c.
Remainders.
d.
SIPs.
4. Under the prevention of significant deterioration (PSD) program:
a.
no one may undertake a building project that will cause a major increase in pollution
without first obtaining a permit from the EPA.
b.
a successful permit applicant must demonstrate that its emissions will not cause an overall
decline in air quality.
c.
a successful permit applicant must demonstrate that it has installed the best available
control technology for every pollutant.
d.
All of the above.
5. Environmental protection issues are regulated by:
a.
federal statutory law.
b.
state statutory law.
c.
administrative regulations.
d.
All the above.
6. Federal law regulates:
a.
point source and non-point source water pollution.
b.
neither point source nor non-point source water pollution.
c.
point source but not non-point source water pollution.
d.
None of the above is correct.
7. Acid rain is caused primarily by:
a.
sulfur emissions from coal-burning utility plants.
b.
automobile emissions, especially from large cities.
c.
pesticides.
d.
large-scale farming operations that raise livestock.
8. The Clean Air Act directed the EPA to reduce automobile pollution levels by:
a.
50 percent within 10 years.
b.
75 percent within 8 years.
c.
90 percent within 6 years.
d.
80 percent within 20 years.
9. The EPA brought an administrative action against Boch Industries for violating the Clean Air Act. The
administrative law judge ruled in the EPA’s favor. Boch Industries:
a.
can appeal the decision to a U.S. Court of Appeals and then to the U.S. Supreme Court.
b.
can appeal to the U.S. Congress and then to the Chief Justice of the Supreme Court.
c.
can appeal to the Chair of the EPA.
d.
cannot appeal the decision.
10. Which of the following Acts sets goals without regard to the cost involved in meeting the goals?
a.
Clean Water Act.
b.
Clean Air Act.
c.
Both the Clean Water Act and the Clean Air Act.
d.
Neither the Clean Water Act nor the Clean Air Act.
11. Coastal City Power Plant received its annual sulfur dioxide emission allowance. Because it is using a
low-sulfur fuel which burns cleaner than some fuels, it does not need its entire allowance this year.
Coastal:
a.
loses whatever unused allowance it has for the year.
b.
may sell its leftover allowance to another company.
c.
will not be regulated by an allowance next year since it was within its allowance for this
year.
d.
will only avoid future regulation if it signs an agreement to continue using either
low-sulfur coal or natural gas in the future.
12. Sam, the chief executive officer of Boch Industries, was criminally prosecuted for violating the
Resource Conservation and Recovery Act. Which of the following is correct concerning the penalties?
a.
Sam cannot be punished because he was acting for Boch Industries. Boch Industries faces
criminal fines.
b.
Sam faces criminal fines as well as imprisonment.
c.
Sam faces only criminal fines.
d.
The only remedy Sam faces is an injunction to prevent further violations.
13. Congress established a trust fund for the EPA to use in Superfund cleanup. This trust fund was initially
financed by a tax on what?
a.
The general public through federal income taxes.
b.
Waste management and landfill operators.
c.
The construction industry.
d.
The oil and chemical industries.
14. Under Superfund legislation, to what extent must a hazardous waste site be cleaned?
a.
Reasonable conditions under the circumstances.
b.
A safe level for the area in which it is located.
c.
Pristine condition, regardless of cost, even if this is better than it was before the hazardous
waste was dumped onto it.
d.
To the condition of the property before the hazardous waste was dumped on it.
15. James owned real estate. He leased the building to two tenants. An insurance agent leased the first
floor and a law firm leased the second floor. James later sold the land to Mary, who used the entire
building for her business. She discovered that there were underground storage tanks buried in the land.
She had to remove the tanks and then sued James and the former tenants for the cost of removing the
tanks, even though none of them knew the tanks had been there.
a.
James and the two tenants are liable.
b.
James is liable to Mary, but the tenants are not.
c.
The tenants are liable to Mary, but James is not.
d.
Neither James nor the tenants are liable to Mary.
16. What administrative agency regulates pesticides, insecticides, fungicides and rodenticides?
a.
The FDA
b.
The OSHA
c.
The EPA.
d.
All the above.
17. Under the Clean Air Act:
a.
California was granted special permission to set stricter pollution standards than the
federal standards.
b.
all states must follow federal automobile emission standards.
c.
the states must each set automobile emission standards, which must then be approved by
the EPA.
d.
the EPA was directed to reduce automobile pollution levels by 50 percent within six years.
18. Which of following must be included in a federal Environmental Impact Statement?
a.
Available alternatives to the proposed action.
b.
Means to mitigate adverse environmental impacts.
c.
Direct and indirect effects of the proposed action.
d.
All of the above.
19. The disposal of nonhazardous solid waste is:
a.
generally regulated by state law, but the federal government sets guidelines that must be
followed.
b.
the only area of environmental concern that has yet to be regulated by federal action.
c.
completely governed by federal administrative law.
d.
currently the subject of great debate since the federal government has declared such
activity falls under the Endangered Species Act and, therefore, a small annoying fly
known to frequent landfills must be protected.
20. Under the Endangered Species Act, what federal agency is responsible for preparing a list of species
that are in danger of becoming extinct?
a.
Department of Parks.
b.
Department of the Interior.
c.
Department of Labor.
d.
Both a and b are correct.
21. Fresh Air, a nonprofit environmental organization, believes that Cincy Co. is violating the Clean Air
Act. The EPA has not taken any action against Cincy Co. Fresh Air:
a.
can file a citizen suit against the EPA.
b.
can file an executive order with Cincy Co.
c.
cannot file a lawsuit but can ask an administrative law judge to hear its complaint.
d.
cannot file a lawsuit but can lobby Congress to force the EPA to act.
22. Which of the following options are available to power plants for meeting emissions standards?
a.
Installing scrubbers.
b.
Switching to alternative fuels.
c.
Trading emissions allowances.
d.
All of the above are options that power plants can use in meeting emissions standards.
23. Which of the following projects would require the preparation of an Environmental Impact Statement?
a.
A plan initiated by the Forest Service to eliminate a herd of wild goats causing damage in
the Olympic (Washington) National Park.
b.
The building of a golf course outside of Los Angeles that requires a government permit to
build in wetlands.
c.
The expansion of a runway to a major city airport.
d.
All the above.
24. The Toxic Substances Control Act regulates:
a.
chemicals other than pesticides, foods, drugs, and cosmetics.
b.
insecticides.
c.
natural gas.
d.
pesticides.
25. The United States has ____ percent of the world’s population and consumes about ____ percent of the
world’s energy.
a.
20; 65
b.
25; 10
c.
10; 50
d.
5; 25
ESSAY
1. Foiler Manufacturing, a new corporation, estimates it may generate approximately 200 kilograms of
hazardous waste each month. Discuss the EPA requirements it faces in relation to this waste.
2. Discuss the four major provisions of the Clean Air Act.
3. James purchased an abandoned lot. When he started to develop the land, he discovered several
underground storage tanks containing hazardous waste buried on the site. He claims the seller,
Richards, is liable to him for the cost of removing the tanks. Richards claims he owned the lot for 20
years and never knew of the underground tanks. Richards argues he purchased the land from Thomas
and that Thomas or his heirs are liable for the cost of removing the underground tanks. Explain
whether Richards is liable to James. Does Thomas or do his heirs have any liability to James or
Richards?
4. Big Hog Farms of America, Inc., purchased 6,000 acres of farmland in South Dakota. The company
intends to build several hog confinement buildings that will house nearly 40,000 hogs in each one.
When completed, the facility will have over 200,000 hogs. The “hog factory” will cause terrible odors
which will be extremely unpleasant for neighbors within five miles. A town of 2,500 people is only
three miles north of the planned facility. The most serious concern is the disposal of all the hog
manure, which will be very substantial. The hog factory will dump the hog sewage into large lagoons
and then empty the watered-down sewage onto farm fields. It plans to sell some of this manure as
fertilizer, though most of it will be spread on grounds the facility owns.
Despite all the uproar from people in the area, many people are in favor of the facility. It will employ
nearly 200 people, purchase a lot of products (feed, supplies, etc.) from local businesses, and generate
a lot of money into the economy.
Is this business required to submit an Environmental Impact Statement to the federal government
and/or obtain a permit to operate from the EPA? Does the operation need any permits from the federal
government to operate? Does it need authorization from state or local authorities? Explain.
5. Discuss the purpose of and problems with the Kyoto Protocol from the perspective of the United
States.