When the U.S. Congress writes an environmental law, the Environmental Protection Agency (EPA) implements it by writing regulations. Often, the EPA sets national standards that each of the states and tribes enforce through their own regulations. If states and tribes fail to meet the national standards, the EPA can help them. The EPA also enforces its regulations and helps businesses understand the requirements.

Businesses and industries with operations that may impact the environment are often subject to regulations written by the EPA. Some examples of businesses and industries subject to EPA regulations include:

• Agriculture

• Automotive

• Construction

• Electric Utilities

• Oil & Gas

• Transportation

• Dry Cleaning

• Education/Schools

• Forestry & Logging

• Health Care & Social Assistance

• Mining

• Manufacturing

• Water & Sewage Utilities

• Public Administration & Government

Businesses in these and other industries must comply with applicable environmental laws and EPA regulations—as well as state environmental laws and regulations. In addition to compliance with environmental laws and regulations, businesses in these industries often must address environmental matters when buying and selling their businesses and entering into transactions for products and services. For example, it is often important in such transactions to allocate risks and costs related to environmental cleanup, compliance, and other issues.

In Texas, businesses and industries that may impact the environment are subject to both federal and state environmental regulations. The U.S. Environmental Protection Agency (EPA) is responsible for implementing federal environmental laws by creating regulations and setting national standards. Texas enforces these standards through its own state regulations, which are managed by agencies such as the Texas Commission on Environmental Quality (TCEQ). If Texas fails to meet the EPA's national standards, the EPA can step in to assist or enforce compliance. Industries such as agriculture, automotive, construction, and many others must adhere to these regulations. Compliance is crucial not only for ongoing operations but also during business transactions like mergers, acquisitions, and service agreements. In these transactions, environmental risks and costs, including those related to cleanup and compliance, must be considered and appropriately allocated. Businesses must ensure they are in compliance with all relevant environmental laws and regulations to avoid penalties and to protect the environment.