What EPA Policies Reward Self-Disclosure?
EPA’s “Audit Policy” is entitled “Incentives for Self-Policing: Discovery, Disclosure, Correction, and Prevention of Violations” (Federal Register, Vol. 60, p. December 22, 1995). Under the Audit Policy, EPA will reduce or eliminate the gravity-based portions of penalties for violations of federal environmental requirements, depending on whether some or all of the conditions of the policy are met. In general, the “economic benefit” component of the penalty – the costs delayed or avoided by the regulated facility due to its noncompliance – will not be reduced or eliminated, although economic benefit may be waived if it is determined by EPA to be insignificant. The entire gravity-based portion of the penalty will not be sought if the regulated entity meets all of the conditions of the policy, including, among other conditions, that the violation was found through “systematic discovery” – i.e., the audit was discovered through an environmental audit or an “objective, documented, systemati
