April Executive Voices Column

Good Jobs or a Clean Environment?

We can have both if we set priorities and streamline the process

By Ed Scott

NCCBI believes that economic growth and environmental protection are compatible concepts. NCCBI's Environmental Protection Policy states “as a business protects the environment, it preserves the quality of life for its employees and their families, as well as for all citizens of North Carolina. Protecting the environment is not an option -- it is essential to sustainable growth for North Carolina.”

We strongly believe that economic growth and environmental protection are inextricably linked; they are not only compatible, they depend on each other for success. But where are we in the real world today? Many in business believe that these concepts are, in fact, in conflict. Some have even suggested that we are headed toward a regulatory train wreck.

Federal and state governments continue to issue regulations at an alarming rate. The U.S. Federal Register, which issues all federal rules and regulations and is considered a good gauge of regulatory growth, contained less than 15,000 pages in the early 1960s; in 1997, it reached an unbelievable 70,000 pages. This included about 8,000 proposed and final rules, many of which were environmental. Federal environmental rules are almost exclusively interpreted and enforced by the states, in addition to separate state and local rules.

Not only have the number and complexity of environmental regulations grown substantially, but also has state government staff who must administer them. The N.C. Department of Environment and Natural Resources (DENR) alone has over 4,000 empolyees.

Americans spend nearly $700 billion per year on all types of federal regulations. Of this, over $180 billion is spent to comply with environmental regulations. This does not include the cost of compliance with separate state and local environmental regulations, which easily makes the total over $200 billion per year. It is safe to assume that N.C.'s share of this cost is over $10 billion per year.

So what have we achieved in the United States and in North Carolina as a result of over 30 years of focus on environmental concerns? Based on EPA's and DENR's own data, we have accomplished a great deal (see “Clearing the Air,” North Carolina Magazine, February 1998). Emissions from all six criteria pollutants that cause air pollution are either down significantly or unchanged from 25 years ago, according to the 1997 DENR “State of the Environment Report.” According to that same report, overall water quality has improved, many wetlands have been restored, waste materials have been recycled, and much more.

Based on the rules implemented, the money spent, and the results achieved, you would think that economic development and environmental protection are marching hand-in-hand toward common goals for North Carolina. Many do not believe that this is the case.

In spite of our impressive environmental results, many say we need more regulation, more reductions, more oversight. As a result, we add more command and control, prescriptive rules and regulations.

NCCBI supports and encourages stakeholder involvement in both economic development and environmental protection. However, some environmental groups choose to use emotional and political pressure to achieve their objectives rather than facts, objective discussion, and consensus building. This often results in environmental public policy or regulations that are detrimental to sustainable growth.

DENR's current strategic plan states “North Carolina has improved the quality of its environment and natural resources over the last three decades. However, as North Carolina grows we cannot expect such positive trends to continue if we do not plan for the future.” This likely means more regulation.

The Office of State Planning estimates our current population of 7.6 million will grow to approximately 10 million people by 2020. Why are so many people coming to North Carolina? This is a great state, with a good educational system, with excellent labor resources, with great beauty and natural resources. They are also coming here because we invited them. Our Department of Commerce has done an excellent job in promoting tourism and industrial expansion and relocation. We have created many new jobs for our citizens and are moving toward greater prosperity and improved quality of life.

Many citizens believe that we need to do more to protect and improve the environment; and, in some cases, I believe that they are right. Business and industry believe that the current regulatory system is overly burdensome and complex and is not very friendly or supportive of development. I know that they are right. No matter what we do, more people and businesses are coming to North Carolina. They will place increasing demands on our infrastructure and the environment.

If we deal with these challenges as we have in the past, there will be increasing conflicts between economic growth and environmental protection. These are complex issues and the answer is not more complex solutions and regulations. The answer lies in the process. It is the process that is flawed, not the intent of those involved in it. Economic growth cannot be achieved without sound environmental protection. Likewise, sound environmental protection cannot be achieved without economic growth. We need a realistic economic growth and environmental protection strategic plan for North Carolina that prioritizes issues based on risk, benefits and costs, and that minimizes and streamlines the regulatory process. This plan must have the commitment and involvement of all stakeholders.

We can do this; we are doing it today in public education. If we don't, there may be a “train wreck” between economic development and environmental protection. If that happens, the victims will be our citizens and the environment.

Ed Scott of Winston-Salem is a retired vice president of environmental affairs with R.J. Reynolds Tobacco Co. and the chairman of NCCBI's Environmental Concerns Committee.