UMC Regulatory and Legal Compliance 2 — Questions and Answers
Question 1: Under the Safe Drinking Water Act (SDWA), which agency sets the maximum contaminant levels (MCLs) for public water systems?
- OSHA
- EPA (Correct answer)
- FERC
- NERC
Correct answer: EPA
The Environmental Protection Agency (EPA) establishes MCLs under the Safe Drinking Water Act to protect public health.
Question 2: A utility receives a Notice of Violation (NOV) from a state environmental agency. What is the most appropriate immediate action?
- Ignore it pending legal review
- Acknowledge receipt and begin corrective action planning (Correct answer)
- Issue a press release denying the violation
- Shut down operations immediately
Correct answer: Acknowledge receipt and begin corrective action planning
Upon receiving an NOV, utilities should promptly acknowledge it and initiate corrective action planning to demonstrate good faith compliance.
Question 3: Which federal law requires utilities to provide employees with information about hazardous chemicals in the workplace?
- CERCLA
- RCRA
- OSHA Hazard Communication Standard (Correct answer)
- Clean Water Act
Correct answer: OSHA Hazard Communication Standard
OSHA's Hazard Communication Standard (HazCom/Right-to-Know) requires employers to inform workers about chemical hazards through Safety Data Sheets and labeling.
Question 4: What does the term 'pretreatment standard' refer to in wastewater regulation?
- Treatment required before water enters a distribution system
- Limits on pollutants that industrial users discharge into municipal sewer systems (Correct answer)
- EPA standards for drinking water treatment plants
- Minimum flow rates required before treating effluent
Correct answer: Limits on pollutants that industrial users discharge into municipal sewer systems
Pretreatment standards under the Clean Water Act limit pollutants that industrial facilities discharge into publicly owned treatment works (POTWs).
Question 5: Under FERC jurisdiction, which document governs the rates, terms, and conditions under which electric utilities provide transmission service?
- NPDES Permit
- Open Access Transmission Tariff (OATT) (Correct answer)
- Integrated Resource Plan (IRP)
- Service Territory Agreement
Correct answer: Open Access Transmission Tariff (OATT)
The Open Access Transmission Tariff (OATT) filed with FERC governs non-discriminatory transmission access, rates, and service terms for electric utilities.
Question 6: Which principle requires that a utility's rates be 'just and reasonable' under federal law?
- Least-cost planning
- Cost-of-service ratemaking (Correct answer)
- Prudent investment standard
- Revenue decoupling
Correct answer: Cost-of-service ratemaking
Cost-of-service ratemaking ensures rates reflect actual prudent costs, satisfying the 'just and reasonable' standard required by the Federal Power Act and Natural Gas Act.
Question 7: A utility manager discovers an employee has been dumping untreated wastewater into a local waterway. Under the Clean Water Act, who could face criminal liability?
- Only the employee who performed the dumping
- Only the utility as a corporate entity
- Both the individual employee and utility management who knew or should have known (Correct answer)
- Only the state environmental agency for failing to prevent it
Correct answer: Both the individual employee and utility management who knew or should have known
The Clean Water Act allows criminal prosecution of both individuals who commit violations and managers who knowingly allowed or directed illegal discharges.
UMC Regulatory and Legal Compliance 2
Under the Safe Drinking Water Act (SDWA), which agency sets the maximum contaminant levels (MCLs) for public water systems?