Regional Cuisine Publications Corporation (RCPC) is the publisher of a monthly magazine that features recipes and articles on culinary traditions from various egions in the United States. RCPC began in the South and has expanded into the mid-Atlantic and New England markets in the last 10 years. As part of RCPC’s business model, the actual name of the magazine distributed in a certain region takes on that region’s name (Southern Cuisine, New England Cuisine, etc.).

Although RCPC began its business by contracting with outside vendors that supplied magazine-quality paper, as it has expanded circulation, RCPC has sought to reduce its rising paper costs by producing its own paper in house. RCPC’s management has located a small production facility that has been owned by Paper Production Inc. since 1950. RCPC is now considering purchasing the facility and property.

1. In investigating the purchase of the facility, what environmental laws will RCPC need to be aware of? In what way could environmental regulation affect the costs of the transaction?

2. Assume that the facility emits certain pollutants into the air. RCPC wishes to partially reconstruct the
facility after its purchase for purposes of being able to run the facility for longer periods of time. Does
this trigger any regulatory concerns?

3. Suppose that the facility emits more of a certain pollutant than permitted by the EPA standards. What
are RCPC’s options under the CAA’s market-based approach?

4. Assume that the facility discharges waste from the paper production process into an adjoining river and, because Paper Production was struggling financially, the company never upgraded its technology. If RCPC purchases the facility, will it be required to upgrade the waste discharge technology under the Clean Water Act? What is the standard set by the CWA for upgrading technology?

5. What type of precautionary measures should RCPC’s management take to be sure to limit potential Superfund liability prior to purchasing the site?