Episode: Jennifer Novak: Environmental Issues & Small Business
February 14th, 2024
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Welcome to the Net Profit Podcast with Ryan Kimler, your Net Profit CFO, helping business owners like you grow their net profit one episode at a time. Now, your host, Ryan Kimler.
Ryan Kimler:
Hello and welcome to another episode of the Net Profit Podcast. I'm your host, Ryan Kimler, the Net Profit CFO. Today, I've got a very special guest with me, Jennifer Novak. We're going to be discussing environmental law—a brand-new topic for the podcast and one I think a lot of business owners don’t think about, even though it can definitely impact their business. I’m excited to hear Jennifer share her expertise on this. Jennifer, welcome to the show.
Jennifer Novak:
Thank you so much, Ryan. I’m excited to be here.
Ryan Kimler:
I gave you a short intro, but I’d love for you to share your background and how you got into environmental law.
Jennifer Novak:
Sure. I always wanted to be a lawyer. My mom was in law school when I was born, so I grew up around her classmates—women who were breaking into the legal profession at a time when that was still unusual. That shaped my perspective early on: I saw the law as a way to help people and solve problems.
I took the traditional path—college, law school, clerking for a judge, and then working at law firms. Later, I joined the California Department of Justice as a Deputy Attorney General, representing natural resources agencies. That was my first deep dive into environmental law. These agencies balance real-world business needs with their mission to protect human health and the environment.
After 10 years defending agencies, I started my own firm to bring that perspective to the private sector. Most of my clients are small to medium-sized businesses, property owners (especially in California, where legacy industries like aerospace and oil have left behind contamination issues), and some nonprofits. A big part of my work is ensuring enforcement is fair—because too often, the people trying to follow the rules get penalized while the worst offenders slip through.
Ryan Kimler:
How do we balance over-regulation and under-regulation? It seems like a fine line.
Jennifer Novak:
There are two big issues. First, education. Agencies publish regulations but rarely explain how to comply. Even if you hire consultants, bad advice is common. Business owners assume, "If I needed to know this, someone would tell me," but that’s not how it works.
Second, uneven enforcement. When rules aren’t enforced consistently, some comply while others don’t, undermining the system. Plus, environmental law is science-driven—new chemicals, health studies, and detection methods mean rules constantly evolve. Businesses crave certainty, but this field is inherently uncertain.
Ryan Kimler:
Most business owners don’t think about this until they get hit with a violation. Where can they go to educate themselves?
Jennifer Novak:
Trade groups are a great start. Many have lobbyists or lawyers tracking regulatory changes and advocating for their industry. Without that, permits and regulations can be overwhelming—100+ pages, cross-referencing other documents. If you don’t know the full picture, it’s easy to misunderstand why your neighbor can do something you can’t.
Ryan Kimler:
When clients come to you after a violation, how does the process work?
Jennifer Novak:
Most clients come to us after getting burned—like a property redevelopment that uncovered violations costing millions. They vow, "Never again," and bring us in early for future projects. But usually, it starts with a government letter or a neighbor claiming contamination.
Clients often hire an environmental consultant first. Good consultants will say, "You need a lawyer too." Even without a science background, I ask questions like, "Why wait years for Agency A to act when we could address Part B now?" Sometimes, splitting the problem speeds things up and reduces liability. My job is to translate technical jargon into plain English and protect the client—whether that means pushing back on frivolous lawsuits or confirming a violation is legit.
Ryan Kimler:
It’s like preventative car maintenance—investing a little now avoids huge costs later.
Jennifer Novak:
Exactly. One area people overlook is business succession. If you’re passing a business or property to family, is it an asset or a liability? Commingling assets can expose everything to environmental (or other) liabilities. I’ve seen properties intended for retirement become worthless due to cleanup costs. Buyers and sellers need to scrutinize these risks upfront.
Ryan Kimler:
How can businesses turn environmental responsibility into an advantage?
Jennifer Novak:
Commit to sustainability authentically—avoid "greenwashing." Small tweaks can attract customers, especially millennials and Gen Z, who prioritize supporting ethical businesses. From a compliance standpoint, training employees (not just on what to do but why) avoids costly violations. A $10,000 penalty or a $64,000 lawsuit hurts more than investing in audits upfront.
Ryan Kimler:
Can owners be held personally liable?
Jennifer Novak:
If you respect corporate formalities, liability usually stays with the business. But if you blur the lines (e.g., using business funds for personal expenses), plaintiffs can pierce the veil. Some laws also target officers who knowingly ignore violations.
Ryan Kimler:
Where can listeners connect with you?
Jennifer Novak:
We have a YouTube channel with 60+ videos on environmental law topics. We also offer free, confidential 15-minute "office hours" on the first Wednesday of each month or discovery calls anytime. Visit our website to sign up.
Ryan Kimler:
Links will be in the show notes. Jennifer, thank you for your time and expertise!
Jennifer Novak:
Thank you!
Ryan Kimler (closing):
Until next time, go accelerate your profits!
End of transcript.
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