Environmental law violations vary from less significant violations such as littering or using illegal pesticides, to serious violations such as dumping hazardous waste into waterways or intentionally circumventing environmental laws.
Some companies may violate laws intentionally, as the short-term cost of environmental fines is cheaper than full compliance. However, the costs can be significant. Regulatory agencies like the Environmental Protection Agency (EPA), the Department of Justice (DOJ), and state-level environmental agencies can take legal action when violations occur beyond solely financial penalties. Some of the legal consequences are:
1. Civil Penalties: Companies and individuals who violate environmental laws could face substantial fines and civil enforcement actions. EPA can impose monetary penalties for violations of laws like the Clean Air Act (CAA) and Clean Water Act (CWA). This can range from thousands to millions of dollars in fines, depending on the severity of the violation. State agencies can also enforce environmental laws, often working in conjunction with federal authorities. Courts may impose injunctions against companies that require them to cease operation, take corrective action, or change business practices so that they comply with the law.
2. Criminal Penalties: In instances of environmental violations committed knowingly, recklessly, or with gross negligence, it is possible to impose criminal sanctions. Corporate executives and employees: Individuals who are in any way liable for the violation, such as Chief Executive Officers, Managers, and other employees, may be prosecuted criminally if the person responsible is found to have intentionally violated applicable environmental law. Prison sentences: Various federal laws, including the Resource Conservation and Recovery Act (RCRA) and Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), allow for prison sentences from months to decades for violations, depending upon the circumstances of the violation. Substantial criminal fines: In addition, criminal violations can lead to corporate fines in the multimillion-dollar range as part of the criminal conviction.
3. Actions Taken by Government Enforcement Agencies: Government enforcement agencies have the ability to investigate, prosecute, and impose civil or criminal penalties on corporations and individuals who violate environmental laws and regulations. The Environmental Protection Agency (EPA) has extensive enforcement authority and can investigate corporations with site inspections, audits, and potential violations. The Department of Justice (DOJ) may initiate lawsuits in multiple scenarios on behalf of the federal government against businesses that committed fraud, covered up, or engaged in intentional harm to the environment. State attorneys general may file lawsuits against violators in their jurisdiction as well.
4. Consent Decrees and Settlement Agreements: The majority of companies that are accused of violating environmental laws enter consent decrees with governmental agencies, including: Legally binding agreements that require the corporation to remediate the environmental damage and comply with significant environmental restrictions. Often involve a monetary settlement or negotiating to pay an amount of money, at times in hundreds of millions of dollars. Require continued government supervision/oversight to ensure compliance.
5. Loss of Permits and Business Licenses: those who violate environmental laws may also face the following regulatory consequences: – Operating permits may be revoked meaning they cannot operate their business. – Future permits may be denied preventing them from expanding or changing something in their operation. Professional licenses of any responsible manager or employee could be subject to suspension or revocation.
Companies that harm the environment can be criminally wronged with significant legal repercussions, like enormous fines, lawsuits, or even criminal charges. Some of the most known examples:
BP (2010): Paid $20B in fines for the Deepwater Horizon oil spill responsible for polluted seafood and adverse health consequences.
Volkswagen (2015): Paid $30B in settlements for cheating emissions tests and exposing consumers to toxic air pollution.
Flint Water Crisis (2014-present): Public officials criminally charged and $626M in settlement for lead-poisoned drinking water.
Pacific Gas and Electric Company (1990s-2000s): Paid $333M for toxic chemicals that poisoned drinking water and caused cancer in residents.
DuPont (2000s-2010s): Paid $671M in lawsuits for dumping lethal toxins, while causing cancer and birth defects.
These cases illustrate the extraordinary legal risks businesses face by being irresponsible stewards of the environment, which often leads to public health emergencies, subsequent regulatory penalties, and loss of reputation.
