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With EPA's new air-pollution penalties, it's never cheaper to pay the fine

L. Mosher

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Abstract

The Environmental Protection Agency (EPA) penalties for noncompliance with the Clean Air Act are of questionable value, even though more companies have settled out of court as the penalty levels increased. A new penalty system removes the present maximum civil penalty of $25,000 a day for each violation and allows EPA to match the penalty to the economic savings of non-compliance. Congress may change its attitude about Clean Air Act compliance as the effects of this new regulation are felt. The new rules may prove too complicated to administer because of the need for complicated calculations and the mandatory prosecution rule. Its sponsors hope that a few cases will serve as examples to promote full compliance. (DCK)

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The Environmental Protection Agency (EPA) penalties for noncompliance with the Clean Air Act are of questionable value, even though more companies have settled out of court as the penalty levels increased. A new penalty system removes the present maximum civil penalty of $25,000 a day for each violation and allows EPA to match the penalty to the economic savings of non-compliance. Congress may change its attitude about Clean Air Act compliance as the effects of this new regulation are felt. The new rules may prove too complicated to administer because of the need for complicated calculations and the mandatory prosecution rule. Its sponsors hope that a few cases will serve as examples to promote full compliance. (DCK)

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Available abstract

The Environmental Protection Agency (EPA) penalties for noncompliance with the Clean Air Act are of questionable value, even though more companies have settled out of court as the penalty levels increased. A new penalty system removes the present maximum civil penalty of $25,000 a day for each violation and allows EPA to match the penalty to the economic savings of non-compliance. Congress may change its attitude about Clean Air Act compliance as the effects of this new regulation are felt. The new rules may prove too complicated to administer because of the need for complicated calculations and the mandatory prosecution rule. Its sponsors hope that a few cases will serve as examples to promote full compliance. (DCK)

Key concepts: Clean Air Act, Agency (philosophy), Compliance (psychology), Business, Pollution prevention, Air pollution, Environmental economics, Engineering

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With EPA's new air-pollution penalties, it's never cheaper to pay the fine — Research Paper | ScholarLens