USA Law and Practice Contributed by: Michael Chernick, Sara Coelho, John Chua and Josh Tryon, A&O Shearman
debt, prepaid forwards, leases, concessionary facili- ties, grants and hybrid debt/equity facilities, to name a few available investment instruments. 8.7 Natural Resources A key issue with US natural resource projects, par- ticularly mining project, is the lengthy and challenging permitting process. A key consideration associated with downstream projects in the sector is the avail- ability for the particular project of benefits afforded by the Inflation Reduction Act, whether in the form of tax credits, grants or concessionary loans. The availability of such benefits can significantly enhance the financial feasibility of a project. 8.8 Environmental, Health and Safety Laws The principal environmental laws include: • the U.S. Comprehensive Environmental Response, Compensation and Liability Act, which governs the clean-up of soil and groundwater contamination and includes a “lender liability exemption”; • the Resource Conservation and Recovery Act, which requires the “cradle-to-grave” management and disposal of waste; • the Clean Air Act; • the Clean Water Act; and • the Emergency Planning and Community Right-to- Know Act, which requires industry to report on the storage, use and release of certain chemicals to federal, state and local governments (overseen by the U.S. Environmental Protection Agency).
The principal health and safety law is the U.S. Occu- pational Safety and Health Act which is overseen by the Occupational Safety and Health Administration. With the new US administration, there is heightened uncertainty regarding the direction of federal environ- mental policy. Market participants should monitor for changes in EPA enforcement priorities, as the admin- istration may seek to adjust the balance between environmental regulation and economic growth, par- ticularly in sectors such as energy, infrastructure, and manufacturing.
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