Monday, October 10, 2011

Environmental Policy

One of the many benefits of membership in the Arizona Rock Producers Association is access to developing information regarding policy changes that could affect a member's business. I recently had the opportunity to attend a presentation by the Army Corps of Engineers regarding the Rapanos Decision. The presentation took place in the ARPA offices and was a part of the ARPA Environmental Committee's monthly meeting. This group is made up of representatives from member companies and is tasked with monitoring environmental legislative and policy changes that might impact the manner in which a company conducts its business.

The Rapanos Decision was a Supreme Court ruling regarding the regulation of wetlands and navigable waterways. The case was brought before the Supreme Court by a Michigan land developer who was fined by the Environmental Protection Agency for destroying a wetland area to facilitate the construction of a shopping mall. The ruling went against the developer and established precedence about what constituted a wetlands and a navigable waterway. The ruling established the framework that is used by the Army Corps of Engineers, the government agency that is tasked with regulating and maintenance of all waterways in the United States, to classify all washes, streams and tributaries.

The classification system is important because it will be used to determine the type and more importantly the cost of  the permit ARPA member companies will be required to obtain in order to mine aggregates from the riverbeds and the surrounding areas. This policy adds another layer of governmental regulation to an already heavily regulated industry. The costs associated with obtaining the permit can be substantial and could impact a company's decision on whether to establish mining operations in an area or not.   

The Army Corps of Engineers presentation focused on how the policy changes would be implemented and the criteria that will be used to classify an area for permitting. The presentation also included a video that provided visual examples of the types of mining methodologies that will be impacted by the policy changes. Despite not being too excited about the changes, the ARPA members in attendance agreed the presentation was professional and very informative.

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