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EPA Enlarges Enforcement Shield for Self-Disclosers

Release Date: 5/8/2000
Contact Information: Donna Heron (215-814-5113)

Donna Heron, 215-814-5113

PHILADELPHIA - New changes to EPA’s self-disclosure reporting rules offer businesses stronger protection against fines and penalties.

Through incentives - penalty waivers or reductions - EPA encourages businesses to voluntarily report and correct violations of federal environmental law and regulation. As of May 11, those incentives will be strengthened.

The most important change is that companies will now have 21 days to disclose the violation to the EPA instead of 10 days. The trigger for discovery is when any officer, director, employee or agent of the facility develops a reasonable belief that a violation has occurred.

And through the improved Small Business Compliance Policy, small businesses have more ways to qualify for voluntary discovery - such as using a checklist or attending a workshop. This policy recognizes that small businesses with 100 or fewer employees are far less likely to have the resources to conduct formal compliance audits.

By self-policing their own environmental compliance, businesses can substantially reduce, and in some cases eliminate, penalties for violations. If the EPA or other federal agency discover the violation, then the company will face the maximum penalty.

"These changes to the self-audit policy make it easier for businesses to police themselves by encouraging companies to perform self-audits. Environmental pollution is prevented when businesses become more conscientious," said mid-Atlantic Regional Administrator Bradley M. Campbell.

Recent examples of companies in the mid-Atlantic region which have benefitted from the voluntarily disclosure rule include Dietrich’s Milk Products, Carbide/Graphite Group Inc. and Hickman Williams & Co. – all located in Pennsylvania. EPA agreed to waive $188,975 in penalties against Dietrich; $55,000 against Carbide/Graphite and $17,300 against Hickman Williams.

Other improvements to the EPA’s audit policy include:

* clarifying that one location may qualify even if another company location is already the subject of an inspection, investigation or information request,

* clarifying that a company will have 21 disclosure days for violations discovered at newly-acquired facilities,

* repeated noncompliance will not disqualify a newly acquired facility,

* clarifying that the standard correction period runs 60 calendar days from the date of discovery.

EPA instituted the audit policy in 1995 and since then, use by businesses has been widespread. As of Oct. 1, 1999, approximately 670 organizations have disclosed actual or potential violations at more than 2,700 facilities. The number of disclosures has increased each year the policy has been in effect.

The audit policy contains nine conditions, and businesses that meet all of them are eligible for 100 percent mitigation of any punitive fines. However, penalties that represent the company’s economic gain from noncompliance will still apply.

Both revised policies are available at www.epa.gov/oeca. Related materials are available at EPA’s Enforcement and Compliance Docket and Information Center, (202) 564-2614, or at www.epa.gov/oeca/polguid/enfdock.html.




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