An Environmental Policy Statement is a formal written document that establishes an organization's commitment to environmental protection, compliance with environmental laws, and continuous improvement of environmental performance. The policy identifies the applicable regulatory framework, sets out the organization's environmental objectives and targets, describes the compliance monitoring program, and assigns responsibilities for environmental management.

In the United States, environmental regulation is primarily conducted at the federal level by the Environmental Protection Agency (EPA) under a framework of major environmental statutes. The Clean Air Act (42 U.S.C. 7401 et seq.) regulates air emissions through a system of National Ambient Air Quality Standards (NAAQS), New Source Performance Standards (NSPS), National Emission Standards for Hazardous Air Pollutants (NESHAP), and Title V operating permits. The Clean Water Act (33 U.S.C. 1251 et seq.) regulates the discharge of pollutants into waters of the United States through the National Pollutant Discharge Elimination System (NPDES) permit program.

The Resource Conservation and Recovery Act (RCRA) (42 U.S.C. 6901 et seq.) establishes a cradle-to-grave system for managing hazardous waste, from generation through treatment, storage, and disposal. The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) (42 U.S.C. 9601 et seq.) imposes strict, joint and several liability for the cleanup of contaminated sites. The Emergency Planning and Community Right-to-Know Act (EPCRA) (42 U.S.C. 11001 et seq.) requires facilities to report toxic chemical releases to the EPA through the Toxics Release Inventory (TRI) program.

State environmental agencies implement and enforce many of these federal programs through delegation agreements with the EPA. Many states have enacted more stringent environmental standards than federal requirements. California's environmental regulations, for example, are among the most comprehensive in the nation, including the California Environmental Quality Act (CEQA) and the California Air Resources Board (CARB) programs.

An Environmental Policy Statement is needed by every organization whose operations have an impact on the environment, which includes virtually all manufacturing, construction, energy, transportation, and industrial businesses. Even service-sector and office-based businesses generate waste, consume energy, and use water, making an environmental policy appropriate.

Organizations subject to EPA permits under the Clean Air Act or Clean Water Act are typically required to demonstrate environmental compliance programs as a condition of their permits. Facilities that generate, store, treat, or dispose of hazardous waste under RCRA must maintain documented environmental management procedures. Companies that report to the EPA under the Greenhouse Gas Reporting Program (40 CFR Part 98) or the TRI program under EPCRA should have a documented environmental policy.

Organizations seeking ISO 14001 certification are required to establish an environmental policy as a fundamental element of their environmental management system. Government contractors and companies participating in EPA voluntary programs such as Energy Star or Green Power Partnership benefit from having a documented environmental policy.

The EPA's enforcement guidance considers the existence of an effective environmental compliance program, including a written environmental policy, as a mitigating factor when determining penalties. Having a documented policy demonstrates due diligence and good faith efforts to comply with environmental regulations.

An Environmental Policy Statement should be established when the organization commences operations and should be reviewed at least annually, or following material changes to operations, regulatory requirements, or environmental incidents.

A comprehensive Environmental Policy Statement must address several essential elements to demonstrate compliance with the complex framework of federal and state environmental laws.

The legal framework section should identify all applicable environmental statutes, including the Clean Air Act, Clean Water Act, RCRA, CERCLA, EPCRA, and NEPA, as well as state environmental laws. The scope should define what operations and facilities are covered.

Environmental objectives and targets should be specific, measurable, and time-bound. They should address greenhouse gas emissions, energy efficiency, waste reduction and recycling, water conservation, and pollution prevention. Targets should reference recognized frameworks such as the EPA GHG Reporting Program and the Science Based Targets initiative.

The waste management section should address the waste hierarchy (source reduction, recycling, treatment, disposal) and compliance with RCRA requirements for hazardous waste management, including identification, storage, manifesting, and disposal through permitted facilities.

Water quality and pollution prevention sections should address NPDES permit compliance, stormwater management through SWPPPs, and SPCC plan requirements where applicable.

Compliance monitoring should describe the approach to regulatory reporting, environmental audits, key performance indicators, and incident reporting. Under CERCLA and EPCRA, releases of reportable quantities must be immediately reported to the National Response Center.

Responsibilities should be assigned to senior management, the environmental manager, and all employees. The policy should designate a policy owner and require approval by senior leadership. The review schedule, training requirements, and consequences for non-compliance should be clearly stated.