Newsletters
VOLUME 1
EPA Encourages New Owners to Audit
by Amy Bauer
EPA is launching an interim policy that offers incentives to new owners who correct environmental violations at recently-acquired regulated facilities. Under the interim policy, the new owners may receive lower penalties than long-time owners. The assistant administrator of EPA’s Office of Enforcement and Compliance Assurance refers to this policy as a “clean start”, where new owners have the opportunity to correct environmental problems that began under the previous owner’s watch.
Under the current EPA Audit Policy (EPA’s April 11, 2000 policy on ‘‘Incentives for Self-Policing: Discovery, Disclosure, Correction and Prevention of Violations,’’ is commonly referred to as the ‘‘Audit Policy’’ (65 FR 19618)), the EPA offers reduced penalties to companies that self-audit their facilities, promptly disclose and correct any violations discovered, and take steps to prevent future violations. The new interim policy may allow an owner who acquires a facility to receive penalty reductions beyond what is offered in the Audit Policy from disclosing an even greater range of violations, thus encouraging newly acquired facilities to examine compliance, correct existing environmental problems that began before the acquisition, and make changes to ensure they stay in compliance. As a result, facilities may see a significant environmental benefit and direct pollution reductions.
The new interim policy will be in effect as of August 1, 2008, and EPA will accept public comment until October 30, 2008. The policy may change in light of these comments.
As part of the due diligence process on new acquisitions, EHS Support offers environmental compliance reviews or audits above and beyond the ASTM standard for Phase I Environmental Site Assessments (ESAs), which allows new owners to have a high level of awareness of the current environmental operations once the acquisition is complete. EHS Support can provide additional assistance regarding the EPA interim audit policy upon request.
[1] “Interim Approach to Applying the Audit Policy to New Owners.” 73 Federal Register (1 August 2008), No. 149, pp. 44991 - 45006. Retrieved August 5, 2008 from the World Wide Web: http://edocket.access.gpo.gov/2008/pdf/E8-17715.pdf.
VOLUME 1 - VOLUME 1
- Other Articles (To go back to the overview CLICK HERE)
