Guidelines for Robust Adaptation to Environmental Regulations in Infrastructure Projects

Abstract

Environmental regulations can greatly affect the operation of new and existing infrastructure projects. In fact, the economic performance of infrastructure projects is closely related to environmental regulations whose landscape is extremely dynamic. To assist infrastructure project sectors in better coping with environmental regulatory changes, this study proposes guidelines for the robust adaptation to environmental regulations through information collected from an exploratory research process. As part of these guidelines, a process map model was developed that details the different stages in the environmental regulation development process, including prerulemaking, proposed rule development and publication, commenting period, final rule development and publication, and post-promulgation. Five adaptation subprocesses (i.e., regulatory horizon scanning, stakeholder engagement, risk and opportunity assessment, response strategy development, and compliance implementation) are examined to help regulated entities better adapt to regulatory changes across different regulatory stages. This information has the potential to provide companies with a structured stage-by-stage approach for dealing with uncertainties arising from environmental regulation changes.