A Grandfather Clause in a Regulation Typically Exempts Existing Facilities

question 26

Essay

A grandfather clause in a regulation typically exempts existing facilities or operations from the new regulation.For example,the Clean Air Act of 1970 exempted existing plants from the regulation,affecting only new plants.What was the rationale for including a grandfather clause in something like the Clean Air Act of 1970? Describe a negative result of the grandfather clause used in the 1970 act?

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Definitions:

Traditional Format

Refers to a conventional method or structure commonly used in a specific field or context.

External Reporting

The process of presenting financial and other information to external stakeholders, such as investors, regulators, and the public.

Fixed And Variable Costs

Fixed costs remain unchanged regardless of the level of production or sales activity, while variable costs fluctuate with changes in activity.

Committed Fixed Costs

Long-term fixed costs that a business incurs from its commitments, such as leases or contracts, which are difficult to change in the short term.