The unified voice of business
Government and regulatory policies have the potential to support strong economic development or inhibit it, both at the federal and state levels.
Our state and nation are blessed with an abundance of natural resources and a healthy environment. However, our natural resources and environment will come under threat if they are not managed in a sustainable manner. Public debate on climate change, water and energy use, production and costs, growth management and other quality of life issues is increasing. South Carolina businesses must be an active participant in public policy decisions related to those issues.
Under the Supreme Court’s Smith Land Company opinion of July 12, 2011, every citizen of the state is violating the Pollution Control Act (PCA), and every other citizen has the right to sue them for it.
In the Smith Land Company case, less than 2/10 of an acre of an isolated wetland was filled after the landowner contacted the U.S. Army Corps of Engineers and DHEC. Neither agency had a regulatory program requiring a permit to fill the isolated wetland. Therefore, the landowner did not acquire any permit from any agency, because no permit was applicable. The Supreme Court held that a permit from DHEC was required, not because a regulatory program covered the act of filling the isolated wetland, but because the PCA contains what the Supreme Court interpreted as an absolute prohibition on any discharge into the environment without a DHEC permit.
The Supreme Court’s opinion is plainly wrong and contrary to legislative intent. The decision opens the door for a tidal wave of additional environmental litigation and will create a climate of uncertainty for business and industry.
It is estimated that between now and 2025 – just under15 years – the Palmetto State’s population will increase by more than one million. If we continue pressing forward with the energy we have today, our resources will not be sufficient to shoulder the increased demand. Current statistics show our state’s energy reserve margins shrinking each year. If not addressed, they are positioned to place the state at a huge economic disadvantage as early as 2014.
A recent study by the U.S. Chamber of Commerce, the Index of U.S. Energy Security Risk, finds the nation’s energy security has been notably diminished, and the risk will only grow without smart energy policies. The decline can be attributed to a reduction in access to energy resources, higher energy prices, inadequate electric transmission capacity and rising global demand for energy, amongst others. Securing affordable and diverse energy supplies is crucial to South Carolina businesses.
Congress must consider the impact of foreign competition on U.S. industries if the Environmental Protection Agency’s (EPA) regulations are too stringent, creating competitive disadvantages. The annual cost of federal regulations in the United States increased to more than $1.75 trillion in 2008. These regulations cost small businesses with fewer than 20 employees as much as $10,585 per employee. Since taking office, the Obama Administration has had under consideration 230 economically significant regulations from 16 different federal agencies.
The business community is working alongside federal leaders throughout the energy and environment debate, which includes restricting or pre-empting the EPA’s authority to make arbitrary and capricious (non-scientific, non-data driven) decisions regarding regulations that penalize businesses and create disadvantages for American companies. To preempt the possibility, the South Carolina General Assembly passed legislation in 2010 to limit the impact of any potential greenhouse gas regulations from the EPA on businesses in South Carolina.
In addition, the timely issuance of environmental permits is extremely important for businesses looking to locate in South Carolina and those furthering their investment. It’s vital the General Assembly adequately fund the South Carolina Department of Environmental Control (SC DHEC) so there is enough qualified staff to make timely decisions on important permits.
South Carolina businesses rely on balanced environment and energy policy to improve stability and certainty for companies to make long-term investment decisions. Recently, businesses have seen how overreaching regulations from federal agencies can stymie economic growth. It is important that South Carolina policy makers recognize this and foster a regulatory climate that encourages industry investment and job creation.
The South Carolina Chamber would like to thank the following:
@scchamber
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