"Loophole" would be the proper spelling. also clues you to the definition. here's the precise definition you're looking for:
"A way of escaping a difficulty, especially an omission or ambiguity in the wording of a contract or law that provides a means of evading compliance."
to further describe in my own words as i greatly prefer: it's THE way around the rules itself. not the act, not the thought, but the hole that lets you through unscathed.
The term you're referring to is most likely "polluter pays," which is a principle in environmental law stating that those who produce pollution should bear the costs associated with managing or cleaning it up.