That was the intent of the system for water at least. The acronym for water discharge permits is NPDES. National Pollution Discharge Elimination System.

Then profit driven companies, their soulless lobbyists, amoral lawyers kept bending that.

Like just about any environmental regulation in the US - most of them are heavily influenced by the industries that are regulated. All US laws prioritize commerce and profits first and everything else second. Including the environment, workers rights, etc.

Gotta get lobbying and money as speech out of the equation. Then everything would have some chance of improving or kind of aligning with citizen expectations.

Also, most of government workers would love to have more effective regulations so we can be more effective. Despite most people shitting on them as lazy or ineffective. The ineffective is by design and under funding.