United States
Environmental Protection
Agency
EPA 300-K-99-003
September 1 999'
http://www.epa.gov.oeca/innovative/approaches.html
NNOVATIVE
APPROACHES
to
Enforcement and Compliance Assurance
ACTION PLAN for INNOVATION
Recycled/Recyclable
Printed with Soy/Canola Ink on paper that contains at least 30%
-------
-------
-------
-------
-------
Innovative Approaches to Enforcement and Compliance Assurance
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
Washington, DC 20460
OFFICE OF ENFORCEMENT AND
COMPLIANCE ASSURANCE
From the Assistant Administrator:
This Action Plan for Innovation is the result of extensive outreach to stakeholders, which assisted us
in evaluating new directions taken over the last five years and in identifying additional steps we can take to
improve our program. Participants in the dialogue contributed valuable time and ideas to our evaluation and we
sincerely appreciate those efforts. We invite you to continue to share your perspectives and views on how we
can best ensure compliance with our nation's environmental laws so that all Americans receive the health and
environmental protections of those laws.
Our dialogue began in January and February 1999, with EPA and the Vice President's National Part-
nership for Reinventing Government co-sponsoring two major conferences entitled "Protecting Public Health
and the Environment Through Innovative Approaches to Compliance" in Washington, D.C., and in San Fran-
cisco, Calif. More than 290 people participated at these conferences, including representatives from environ-
mental and community groups, trade associations, small and large businesses, academia, and federal, state, tribal
and local governments. Theconferencesexaminedfourmajorareas:(l)complianceassistance; (2) compliance
incentives; (3) information and accountability; and (4) innovative approaches to enforcement. EPA sought input
on how these areas can be integrated to maximize compliance and reduce the risk to human health and the
environment. We learned a great deal from these meetings.
As a followup to these conferences, EPA released an Executive Summary of the East and West Coast
Conferences. In addition, OECA published a Federal Register notice seeking comment on the same four
areas that had been discussed at the conferences. We relied heavily on this input in developing this plan.
EPA has already taken steps to implement the Action Plan and has included milestones for each
action. While the milestones are ambitious, we believe they are achievable and we will hold ourselves
accountable for meeting them. Timely implementation of this plan is a top priority for the enforcement
and compliance assurance program.
A number of the action items call for EPA to seek more input from those outside the Agency. I
hope you will continue to work closely with us as we implement this plan. For example, in the future
EPA will consider the ideas of interested stakeholders in identifying EPA's priorities for its compliance
assurance and enforcement program. EPA will also seek the ideas of interested stakeholders on a com-
pliance assistance plan that will focus Agency resources on environmental and compliance problems that
need federally supported compliance assistance. We look forward to working with you as we implement this
plan and as we continue to look for opportunities to improve the effectiveness of our program.
-------
for Innovation
Contents...
Executive Summary , 4
Chapter I. Introduction 5
Chapter II. Innovations in Delivery of Compliance Assistance 7
A. Deliver Compliance Assistance Information and Tools
for Economically SignificantRules ,.,. 7
B. Supporting the Development of Expert Systems 8
C. Foster aNetwork of Compliance Assistance Providers 8
D. Developing a Clearinghouse of Compliance Assistance Materials 8
E. Ensure the Viability of Compliance Assistance Centers 9
F. Develop an Annual Compliance Assistance Plan 9
Chapter III. Innovations in Compliance Incentives 10
A. Revise the Audit Policy to Increase Self-Policing and Disclosures
While Assuring Protection of Human Health and the Environment 10
B. Simplify the Small Business Policy to Increase Disclosures
While Assuring Protection of Human Health and the Environment 11
C. Encourage Corporate-Wide Disclosures , 11
D. Develop Compliance Audit Protocols 12
E. Support the Evaluation and Strategic Promotion of Environmental
. Management Systems (EMSs) 13
F. SupportEPA'sDevelopmentofa "Performance Track" 13
Chapter IV. Innovations in Information and Accountability 15
A. EnhanceRoleofStakeholdersinNationalPriority-Settingforthe
Enforcement and Compliance Assurance Program 15
B. ImplementNationalPerfornianceMeasurementStrategy(NPMS) 15
C. Issue Environmental Performance Information on Selected Sectors 17
D. Publish Compliance Data on the Internet 17
E. Evaluate the Effectiveness of Compliance Assistance, Compliance
Incentives, andEnforcement Activities 17
F. Publish Primer on Environmental Enforcement and
Compliance Assurance Program 18
Chapter V. Innovative Enforcement Approaches 19
A. Expand Use of Integrated Enforcement Strategies That Combine
Compliance Assistance, Incentives, Monitoring, andEnforcement 19
B. Establish a Single Hotline for Citizen Complaints , 20
C. Involve Communities in the Development of Supplemental
Environmental Projects (SEPs) 20
D. Publicize Innovative SEPs , 20
Chapter VI. Conclusion 21
SEPTEMBER 1999
-------
Innovative Approaches to Enforcement and Compliance Assurance
EXECUTIVE SUMMARY
jHve years ago, EPA reorganized its enforcement and compliance assurance program. At that time, EPA
JL made many changes and launched new initiatives to make the program more effective in protecting public
health and the environment. EPA used the occasion of the five-year mark to evaluate progress on new direc-
tions and identify additional program improvements. To do so, EPA undertook extensive outreach to stake-
holders. These outreach efforts confirmed that EPA's new direction in its compliance assurance and enforcement
program is sound. It also confirmed that EPA can continue to do even more to improve the program. This
report is an action plan built on the excellent feedback we received from stakeholders. It highlights actions EPA
will take to further the new directions in compliance assistance, incentives, and enforcement.
A few of these actions deserve special note. First, this report highlights a series of changes EPA will
make to better serve the needs of its state partners and other compliance assistance providers. EPA has
learned a great deal about compliance assistance needs since the reorganization five years ago. EPA and
stakeholders both agree that EPA's role in compliance assistance should shift to more of a "wholesaler" than a
"retailer" of compliance assistance. This shift must recognize the key role that EPA can play in providing tools
and other assistance to frontline compliance assistance providers in states, localities, and the private sector. As
it shifts emphasis, the enforcement and compliance assurance program will seek and consider the ideas of
interested stakeholders and work with Regions and program offices to develop an EPA-wide compliance
assistance plan. This plan will focus resources on priority environmental and compliance problems that need
federally-supported compliance assistance. EPA also commits to develop more timely compliance assistance
materials for certain new regulations.
This report also continues EPA's strong endorsement of self-auditing by the regulated community and of
environmental management systems as a key compliance and performance tool. EPA will amend its Audit
Policy and Small Business Policy to further encourage companies to complete self-audits and to disclose and
correct any violations discovered. The enforcement and compliance assurance program will support the
Agency's commitment to use environmental management systems to assist in accomplishing its strategic goals.
In addition, EPA will enhance the role of interested stakeholders in identifying EPA's compliance and enforce-
ment priorities.
EPA commits to implement an enhanced set of performance measures for assessing the improvements
resulting from the full range of EPA's enforcement and compliance assurance activities. This effort has been underway
for several years and a new set of outcome measures will be fully implemented in the next few years. In addition,
based on its early success with integrated strategies in addressing noncompliance priorities, EPA will consider more
routine use of such strategies. Finally, EPA remains committed to a strong base enforcement program to address
serious noncompliance problems.
EPA's five-year review produced many good ideas for improving the enforcement and compliance
assurance program. These actions are detailed in the report, and, coupled with our ongoing efforts, will improve
the effectiveness and efficiency of the enforcement and compliance assurance program. EPA has already
started work on implementing this report, and looks forward to the challenges ahead in turning the commitments
into a new way of doing business.
-------
Action Plan for Innovation
CHAPTER I: INTRODUCTION
In 1994 EPA sought to improve the effectiveness of its compliance monitoring and enforcement program by
consolidating all of its Headquarters operations into one office: the Office of Enforcement and Compliance
Assurance (OECA). A number of EPA Regional offices implemented similar reorganizations. These
reorganizations resulted in substantive and structural changes. EPA recently undertook a five-year review to
assess how well the reorganizations improved the effectiveness of the enforcement and compliance assurance
program. This assessment included soliciting ideas from EPA's State partners and abroad array of
stakeholders on how the Agency can further improve public health and the environment through its compliance
assurance efforts. This report describes the actions that EPA will take as aresult of that assessment.
The assessment began in early 1999 with EPA and Vice President Gore's National Partnership for
Reinventing Government co-sponsoring two major conferences. More than 290 people participated in these
conferences, including representatives from environmental and community groups, trade associations, small and
large businesses, academia, andfederal, State, tribal, and local governments. Participants discussedfour major
subjects: (1) compliance assistance; (2) compliance incentives; (3) information and accountability; and (4)
innovative approaches to enforcement. In particular, EPA sought ideas onhow these areas can be integrated to
maximize compliance and reduce the risk to human health and the environment. In January 1999, the Agency
released a report on its accomplishments entitled, "Protecting Your Health and the Environment Through
Innovative Approaches to Compliance: Highlights from the Past 5 Years." This report is available athttp://
www.epa.gov/oeca/polguid/oeca5sum.html.
EPA released a summary of the two conferences and published a Federal Register notice seeking
comment on its current efforts and how EPA can further improve human health and the environment through
new compliance and enforcement initiatives. The comment period closed April 16,1999, and EPA received
comments from more than 75 individuals or organizations. Conference summaries and a copy of the Federal
/fegzsfer notice are also available athttp://www.epa.gov/oeca/polguid/oeca5sum.html.
Most of the comments address one or more of the following major themes:
a. State/local/tribal governments and private providers should provide direct compliance assistance;
EPA should serve primarily as a "wholesaler" of compliance assistance;
b. EPA's compliance assistance centers are providing a valuable service;
c. EPA should develop compliance assistance materials in a timely manner following the issuance of
significant new regulations and should take steps to ensure that the target audience receives the
compliance assistance materials;
d. EPAshouldofferincentivestopromotecompUance,inparticularthroughitsAuditPolicy;
e. EPA, working with states, should improve the information available to the public regarding compliance
and environmental performance data;
f. EPA should continue to measure the effectiveness of its enforcement and compliance assurance
program in achieving compliance with environmental requirements to protect human health and the
environment; and
g. Compliance assistance and incentives can often be more effective when integrated with enforcement
strategies.
-------
Innovative Approaches to Enforcement and Compliance Assurance
The input that EPA received during this assessment resulted in the commitments that appear in this Action
Plan for Innovation. In addition, EPA created the Agency-wide Task Force on Innovations ("Task Force") that
was charged with submitting recommendations to Hie Administrator on actions EPA can take to continue to
reinvent environmental regulation in ways that are cleaner, cheaper, and smarter. The Task Force considered
the views from the two enforcement and compli ance assurance conferences and conducted an extensive
stakeholder process to seek ideas for further innovative approaches to environmental protection. The Task
Force's report, "Aiming for Excellence: Actions to Encourage Stewardship and Accelerate Environmental
Progress" (www.epa.gov/reinvent), completed in July 1999, includes commitments from the Agency's
enforcement and compliance assurance program, and other EPA offices. The commitments concerning the
enforcement and compliance assurance program also appear in this document, along with many action items
that are not in the EPA Innovations Report.
The Action Plan is organized around the four topics discussed at the conferences held earlier this year.
The plan addresses each topic in a separate chapter. Each chapter discusses the actions that the Agency
will take to address the comments it received during the conferences or in response to the Federal
Register notice. For each action* the plan also identifies significant milestones and a responsible office.
-------
Action Plan for Innovation
CHAPTER II: INNOVATIONS IN DELIVERY OF
COMPLIANCE ASSISTANCE
'T'his chapter commits EPA to broaden its compliance assistance programs by adopting an Agency-
J_ wide strategy encompassing the full range of regulatory activities, from rulemaking through compliance and
enforcement. This strategy will change EPA's compliance assistance program in two key respects: (1) EPA will
expand its efforts to provide timely compliance assistance for final rales, and (2) EPA will increase its role as a
"wholesaler" of information by distributing and marketing tools through a network of compliance and technical
assistance providers at the State and local level that work more directly with the regulated community. EPA
will provide direct "retail" delivery of assistance primarily as part of targeted initiatives.
EPA will select rules for developing compliance assistance tools through an annual planning process. EPA
will work with states and obtain input from stakeholder groups to establish these priorities and will hold a
periodic forum of all compliance assistance providers - public and private - to exchange information and
provide input to the Agency's compliance assistance priorities. A clearinghouse of compliance assistance
materials available from government and private assistance providers will be developed.
EPA is also increasing the availability of information that is helpful to regulated entities in
determining what they must do to comply with federal environmental requirements. Specifically, by the
end of FY2000, EPA will make all significant policy and guidance documents available to the public
through the Internet in an integrated system. To date, EPA has identified approximately 6,000 policy,
guidance, and interpretive documents for possible inclusion in the collection. EPA has converted nearly
3,000 documents into an electronically-accessible format and is in the final stages of developing a
retrieval application so that the public may search for, find, and download these documents from EPA's
Internetpages.
A. Deliver Compliance Assistance Information and Tools for Economically Significant Rules. In
its recently-issued Innovations Report, EPA committed to issuing compliance assistance materials for new
economically significant regulations (generally those that have an economic impact of $ 100 million or more) that
apply to companies and/or governmental facilities, typically within 90 days of final rule promulgation. EPA may
decide to produce a compliance guide for a "substitute'' rule that is not economically significant rather than for a
rule that does meet that threshold, because it would be more beneficial. These guides will be developed in
conjunction with each program's rulemaking process.
The enforcement and compliance assurance program will support this commitment to develop
compliance assistance tools early by assisting in the development of compliance assistance guides and self audit/
inspection checklists. These materials will include information abouthow to comply through pollution
prevention, where appropriate. Through the Compliance Assistance Forum (see below) and other opportunities
for stakeholder input, EPA will consider the development of compliance assistance tools for some existing
regulations, besides developing such tools for new regulations. The materials will be developed with input from
frontline personnel in government, and the regulated community and other stakeholders as appropriate.
Milestone: Ongoing—Will support program office development schedule and assign
compliance and enforcement staff to working group.
SEPTEMBER 1999
PAGE?
-------
Innovative Approaches to Enforcement and Compliance Assurance
Responsible Office: Office of Compliance (OC) in OECA has lead responsibility to
coordinate staffing of HQ and Regional enforcement and compliance assurance personnel to (1)
work with program offices on compliance assistance tool development for appropriate
regulations, and (2) to develop other compliance assistance tools.
B. Supporting the Development of Expert Systems. In its recently-issued Innovations Report, the Agency
committed to developing prototype computer software programs ("expert systems") in conjunction with certain
regulations. Expert systems guide facility operators through new regulations and provide answers on
applicability, deadlines, and what must be done to comply. The Agency would select the appropriate
regulations for development of these systems based on consultation with its State partners and other assistance
providers. The selected regulations would be identified in the annual compliance assistance plan. The
enforcement and compliance assurance program will support the development of these expert systems.
Milestone: Ongoing—Will support program-office development schedule.
Responsible Office: OC in OECA has lead responsibility to coordinate staffing of HQ and
Regional enforcement and compliance assurance personnel.
C. Foster a Network of Compliance Assistance Providers. EPA will support and rely on a variety of
organizations that have direct contact with regulated entities to advise it of compliance assistance needs. This
network includes State, local, and tribal governments, Small Business Assistance Programs, pollution
prevention programs, universities, community groups, licensing agencies, trade associations, and professional
associations. EPA will also look to expand this network to include non-traditional compliance assistance
providers, such as product suppliers.
EPA commits to expand its role as a "wholesaler" of compliance assistance information by
convening a Compliance Assistance Forum. OECA and Regional compliance assistance staff will
organize a national Compliance Assistance Forum of public and private representatives to share
information among participants on recently promulgated federal regulations and recently developed
compliance assistance materials. The forum will assist EPA in supporting the network of compliance
assistance providers by giving EPA ideas and information about how best to serve as a "wholesaler" of
compliance assistance information, and by providing stakeholder views on compliance assistance
priorities. The forum will also facilitate the exchange of tools, methods, and lessons learned.
Milestone: March 2000—Convene forum.
Responsible Office: OECA -Office of Compliance
D. Developing a Clearinghouse of Compliance Assistance Materials. In conjunction with State and
local governments, OECA will develop a clearinghouse of compliance assistance materials. The clearinghouse
will, in phases, provide access to information from the public sector and from private providers, such as trade
associations.
-------
Action Plan for Innovation
Milestone: October 30,1999—Begin development of clearinghouse.
September 30,2000—Clearinghouse operational.
Responsible Office: OECA-OC
E. Ensure the Viability of Compliance Assistance Centers. The Centers are a key component of the
Agency's delivery of compliance assistance and development of tools. The Centers have been well
received by the regulated community and others as a valuable and unique source of multi-media, sector-
based compliance and environmental assistance. As a result, EPA's compliance assurance program will
continue to support existing centers and evaluate the need for additional centers.
Milestone: Ongoing. EPA will evaluate the resource needs of the centers annually during
the development of the budget.
Responsible Office: OECA-OC
F. Develop an Annual Compliance Assistance Plan. In consultation with its State and tribal partners, other
compliance assistance providers and stakeholders, EPA will develop an annual plan to implement the Agency-
wide strategy for compliance assistance. The plan will ensure that resources are focused on areas where they
are most needed. The plan will include an identification of the regulations for which EPA will develop
compliance guides, audit checklists or expert systems. The annual plan also should examine existing regulations
to determine whether compliance problems could be addressed through clarifying guidance and direct
assistance from the provider network.
Milestones: September 30,1999—Begin consultation with State partners to develop
compliance assistance plan.
February 2000—Circulate draft plan to partners and private providers
April 2000—Submit plan to Deputy Administrator.
May 2000 (and annually thereafter)—Finalize plan.
Responsible Office: OECA- OC
-------
Innovative Approaches to Enforcement and Compliance Assurance
CHAPTER III: INNOVATIONS IN COMPLIANCE
INCENTIVES
To achieve compliance and encourage environmental performance beyond what the law requires,
EPA has incorporated incentives into its compliance assurance and enforcement program. In
particular, EPA has encouraged regulated entities to discover, disclose, promptly correct and prevent future
violations through penally waivers or reductions offered under EPA's policy, Incentivesfor Self-Policing:
Discovery, Disclosure, Correction and Prevention of Violations (Audit Policy), and the Final Policy on
Compliance Incentivesfor Small Business (Small Business Policy). In addition, EPA's Policy on Flexible
State Enforcement Responses to Small Community Violations provides the tools and flexibility that small
communities need to achieve environmental compliance on a sensible schedule and with penalty reductions for
correctingviolations.
EPA's stakeholders encouraged the enforcement and compliance assurance program to build on the
work of the Audit Policy, the Small Business Policy, and other innovations. This chapter describes the
actions EPA will take to promote compliance and other environmentally responsible behavior.
A. Revise the Audit Policy to Increase Self-Policing and Disclosures While Assuring the Protection
of Human Health and the Environment. Since EPA's Audit Poli cy became effective in January 1996,
hundreds of responsible companies have relied on the policy to voluntarily disclose, promptly correct, and
preventfuture environmental violations in exchange forreduced civil penalties. As of July 1999,485 companies
have disclosedpotential environmental violations under the policy at more than 1906 facilities, and EPA has
reduced or waived penalties under the policy for 199 companies at 987 facilities.
In a Federal Register notice published May 17,1999, EPA announced the preliminary results of its evaluation
of the Audit Policy and solicited public comment on the proposed revisions to the policy that are based on the
evaluation. For example, according to the preliminary results of the evaluation:
•Useofthepolicy has been widespread, including significantmulti-facility disclosures;
• Users of the policy report a very high satisfaction rate, with 88 percent of the respondents
stating that they would use the policy again; and
• The discovery and correction of violations under the policy have removed pollutants from the air
and water, reduced the accidentalreleases of pollutants into the environment, and improved public
information onpotential environmentalhazards.
In the Federal Register notice, EPA proposed to lengthen the period for prompt disclosure from 10 to 21 days
and clarify the availability of penalty mitigation for multi-facility disclosures. EPA also commits to reduce the time
to process Audit Policy cases. For example, EPA will encourage companies to use disclosure checklists so that
EPA receives all of the information it needs to determine policy applicability and resolve cases in a timely fashion.
EPA is already taking steps to better manage disclosures pursuant to the Audit Policy. For example,
EPA is using self-certification and unilateral letters of determination for certain types of cases, such as
-------
Action Plan, for Innovation
those involving few violations. EPA also is encouraging the use of disclosure checklists by companies that want
to disclose. Checklists ensure that the disclosure includes all of the information needed by EPA to determine the
policy's applicability and help EPA timely resolve cases. In addition, EPA now has a national audit policy
coordinator to field questions from Regional offices and the regulated community, and is adapting its data
systems to better track pertinent case information. The Agency expects these changes to speed up the
processing of many cases.
Milestones: May 17,1999—PuWishedFederalRegisternoiice. seeking comment
on proposed revisions to the Audit Policy (64 Fed. Reg. 26,745).
July 16,1999—Close of comment period on proposed revisions to
the Audit Policy.
December 1999—Issue Final Revised Audit Policy.
Responsible Office: OEC A-Office of Planning and Policy Analysis (OPPA)
B. Simplify the Small Business Policy to Increase Disclosures While Assuring the Protection of
Human Health and the Environment. Now that the Small Business Policy has been in effect for three years,
EPA is seeking ideas from representatives of small businesses and other stakeholders on how to modify it to
encourage more small businesses to disclose and self-correct environmental violations. For example, EPA is
requesting comment on whether the Small Business Policy should allow small businesses that disclose and
correct violations to receive 100 percent mitigation of the gravity-based portion of the penalty regardless of
how the disclosing small business discovers the violation. The currentpolicy Emits the 100 percent mitigation of
the gravity portion of the penalty to situations in which the small business discovers the violation as aresult of
receiving on site compliance assistance or conducting a self-audit.
Milestones: July 29,1999—Published Federal Register notice seeking comment on
proposed revisions to the Small Business Policy.
September 27,1999—Close of Comment Period.
December 1999—Issue Final Revised Small Business Policy.
Responsible Office: OECA-OC
C. Encourage Corporate-Wide Disclosures. EPA will expand upon its use of the Audit Policy to facilitate
and encourage corporate-wide and multi-facility audits.
Companies with multiple facilities or with facilities located in more than one EPA Region that seek to audit and
disclose under EPA's Audit Policy may find it difficult to coordinate disclosures. In addition, because of the
potentially continuous stream of violations discovered during the course of a corporate-wide audit, companies
could be faced with preparing numerous disclosures to meet the policy's 10-day disclosure requirement
contemplated for single-facility disclosures.
Corporate audit agreements are designed to address potentially high-volume disclosures and to provide
the efficiency of a sole mechanism for analysis and settlement of similar or voluminous violations.
Audit agreements provide an advanced understanding with respect to schedules for audit
commencement and completion, disclosure and correction of violations, and in some cases may include
stipulated penalties for violations not covered by the Audit Policy. Such advanced agreements provide
SEPTEMBER 1999
-------
Innovative Approaches to Enforcement and Compliance Assurance
companies with assurances that otherwise qualified disclosures will meet EPA's expectations for timely
disclosure and correction, and, in some cases, provide the predictability of knowing potential penalties
in advance.
Two recent corporate agreements illustrate the success of corporate audit agreements and exemplify
how such agreements can be tailored o meet the needs of companies in specific auditing situations:
• The Arizona Chemical audit agreement provides for a 12-month TSCA audit at six of its facilities for
all products that the company sells. This agreement enables the company to review its entire operation
on a mutually agreed-upon schedule and without interruption by a routine federal inspection.
• The AMR Corporation (American Airlines) audit settlement agreement resolves violations discovered
through acorporate audit of AMR's facilities at 152 airports. The agreement addresses violations of
federal diesel fuels regulations that prohibit the use of high-sulfur fuel in motor vehicles. This agreement
provides the company with an efficient resolution of numerous violations, while avoiding the risk of
^eligibility due to violations that could have been considered to be a pattern.
EPA plans to build on its use of corporate audit agreements and corporate audit settlements as a means
of encouraging corporate-wide disclosures. EPA will issue a fact sheet, available to the public on OEC A's
auditwebsite, in which the Agency will establish aprocess for handling multi-facility disclosures andidentify
situations for which corporate agreements may be especially appropriate. In addition, EPA will use outreach to
national organizations and individual industry sectors to encourage corporate audits and the use of corporate
audit agreements and settlements.
Milestone: November 30,1999—Issue corporate audits fact sheet.
Responsible Offices: OECA-Office of Regulatory Enforcement (ORE) and Regions
D. Develop Compliance Audit Protocols. EPA will develop multi-media environmental audit protocols to
assisttheregulated community in conducting environmental audits and ensure that audits are thorough and
comprehensive. EPA is developing these protocols to encourage businesses and organizations to perform
environmental audits, to enhance environmental compliance, and to discover and disclose violations in
accordance with EPA's Audit and Small Business Policies. Each protocol will summarize key requirements
underthe relevant statute, define regulatory terms, and provide an overview of the federal laws affecting the
respective environmental management or statutory area. The protocols will include aregulatory checklist that
will match regulatory requirements with suggested performance objectives for the auditor.
To date, EPAhas issued four audit protocols to provide guidance in conducting audits under the Comprehensive
Response, Compensation, and Liability Act (CERCLA), the Emergency Planning and Community Right-To-
Know Act (EPCRA), and the Resource Conservation and Recovery Act (RCRA) (in two volumes for
generators and treatment storage and disposal facilities).
Milestones: December 1999—Complete and distribute protocols covering non-hazardous
waste management, universal waste and used oil, pesticides management,
management of toxic substances, Safe Drinking Water Act, spill prevention control
and countermeasure requirements and storage tank regulations.
-------
Action Plan for Innovation
March 2000—Complete and distribute audit protocols covering the Clean Water
Act, the Clean Air Act, and the Toxic Substances Control Act.
Responsible Office: OECA-OC
E. Support the Evaluation and Strategic Promotion of Environmental Management Systems
(EMSs). EPA endorses the use of well-designed EMSs that focus on improved compliance,
environmental performance, and pollution prevention. These systems provide a framework for
organizations and communities to more effectively manage their environmental obligations, including
those required to comply with applicable statutes and regulations. In addition, these systems can be
useful for moving beyond compliance, improving overall environmental performance, and making
greater use of pollution prevention approaches. From a business standpoint, EMSs can help
organizations meet their environmental obligations more efficiently, and, therefore, maintain their
competitive position in various markets.
The recently-issued Innovations Report commits EPA to use EMSs to assist the Agency in
accomplishing its strategic goals. EPA's enforcement and compliance assurance program routinely
encourages the use of EMSs in its compliance and enforcement activities. The enforcement and compliance
assurance program will support the Agency's efforts and will work with other EPA offices to further improve
the Agency's understanding of how EMSs work and their effect on compliance and other measures of
environmental performance. In addition, the enforcement and compliance assurance program will strategically
promote the use of EMSs in certain sectors, including sectors that are dominated by small business, to improve
compliance and overall environmental performance.
Milestone: Six months after Issuance of Innovations Report—Support the development of
a strategy by the Office of Policy and Reinvention (OPR) to increase EMS use in targeted
sectors or geographic areas.
Responsible Offices: OECA-OPPA and OC
Milestone: Six Months after Issuance of Innovations Report—Support the development
of tools by OPR that encourage improved environmental performance, such as training,
information gathering, "best practices" manuals, and short-term and long-term measures of
environmentalperformance.
Responsible Offices: OECA- OPPA and OC
Milestone: Three years after Issuance of Innovations Report—Support an evaluation by
OPR of the environmental and economic results of EMSs.
Responsible Offices: OECA- OPPA and OC
F. Support EPA's Development of a "Performance Track." EPA is committed to encouraging
companies that already excel to continue to improve their environmental performance. Several widely
recognizedpolicy reports have recommended that EPA develop an "alternative track" or "performance track"
SEPTEMBER 1999
PA.GE 13
-------
Innovative Approaches to Enforcement and Compliance Assurance
that would create incentives for companies to implement innovative environmental strategies for improving
performance. While definitions of what constitutes a "performance track" vary, the term generally refers to
providing "top performers" greater flexibility in how they meetregulatory requirements if they do more to
protect the environment and assure accountability. Such extra steps can include: (1) implementing a well-
designed EMS; (2) involving the community in decision-making; and (3) reporting to the public about their
environmental performance. EMS s have the potential to be a foundation of a performance track.
Milestone: Ongoing—Participate in and support EPA's commitment to develop a
"performance track."
Responsible Offices: OECA-OPPA and OC
PAGE 14
SEPTEMBER 1999
-------
Action Plan for Innovation
CHAPTER IV: INNOVATIONS IN INFORMATION AND
ACCOUNTABILITY
During the past five years, EPA has been working to increase public awareness of the compliance
status and environmental performance of regulated entities and the nature and timeliness of EPA and
State responses to noncompliance. Concurrent with creating greater access to EPA data systems, EPA has
developed new performance measures to enable the public, government, and regulated entities to assess the
state of compliance and the extent to which the Agency's compliance assurance and enforcement activities
improve compliance and environmental quality.
Building upon these efforts, EPA will continue to work with its State partners to improve the quality
and kind of data in its data systems submitted under EPA's state program grants. In addition, EPA will improve
the availability of that data to the public in a format that will enable them to assess compli ance and
environmental performance of a particular facility in their communities and its performance relative to similar
facilities in the same sector or geographical area. Finally, for the first time, EPA will be eliciting and considering
the views of local and national citizen groups, businesses, and other regulated entities on EPA's priorities for its
enforcement and compliance assurance program.
A. Enhance Role of Stakeholders hi National Priority-Setting for the Enforcement and
Compliance Assurance Program. Beginning in FY2000, for the FY2002-2003 planning cycle, EPA
will elicit the views of various stakeholders, including representatives of community groups, industry,
environmental groups, and other federal agencies for setting priorities for EPA's compliance assurance
and enforcement program. EPA currently works with the Regions, states, and other program offices at EPA to
develop national priorities for compliance assurance and enforcement resources for each two-year planning
cycle. EPA will expand the role of the states and seek input from tribes and stakeholders in developing future
priorities for EPA's enforcement and compliance assurance program.
Milestones: September 2000—Convene stakeholder meetings to provide input to the
enforcement and compliance assurance program on appropriate priorities for
enforcement and compliance assurance for FY2002-2003.
January 2001—Issue Draft Memorandum of Agreement (MOA).
Guidance outlining recommended priorities for FY2002-FY2003.
April 2001—Issue Final Memorandum of Agreement Guidance for
FY2002-2003.
Responsible Office: OECA-OC
B. Implement National Performance Measurement Strategy (NPMS). EPA initiated the NPMS in
1997 to identify, design, and implement an enhanced set of performance measures for assessing the
environmental improvements resulting from EPA's enforcement and compliance assurance activities.
Through the implementation of the NPMS, EPA, the states and the public can examine the relationship between
activities and results, and help identify how strategies and activities need to be changed or applied to produce
the best possible environmental results.
SEFfEMBER 1999
-------
Innovative Approaches to Enforcement and Compliance Assurance
TheNPMS includes measures of outcomes (results) and outputs (program activities). This set of measures,
known collectively as the Performance Profile, includes the following measures of environmental results or
outcomes:
• Noncompliance rates for selected regulated populations;
• Environmental and human health improvements from compliance assurance and
enforcement activities;
• The disclosure and correction of violations using EPA's compliance incentive
policies;
• Timeliness of return to compliance by significant violators; and
• Recurring or new violations by significant violators.
The Profile also includes the following output measures:
• Number of inspections and investigations conducted;
• Number of enforcement actions taken;
• Compliance assistance provided; and
• Capacity building efforts.
InApril 1999, EPA began collecting data to support the measures. Subject to the FY2000-FY2001
budget process, the second and final phase of implementation will begin by FY2000, making all
measures fully operational by the end of FY2000. In addition, EPA is making available approximately
$1 million to eight states to support the their development and implementation of outcome measures.
Milestones: March 1999—Publish Guide for Measuring Compliance Assistance
Outcomes.
March 1999—Begin collecting outcome datafor serf-disclosures (e.g.,
pollutants reduced through self-correction of disclosed violations).
June 30,1999—Make funding decisions for cooperative agreements to
states for evaluating outcome measures.
April 1 through September 30,1999—Begin using certain measures to
assess performance, e.g., capacity-building efforts provided to State, local, or
tribal programs.
April 1 through September 30,1999—Select five (5) populations for the
development of statistically valid compliance rates.
October 1999—Full set of Performance Profile measures operational.
Additional measures to assess performance will include use of statistically
valid comph'ance rates for selected regulated populations.
FY2000—Region's IT implementation of inspection conclusion data sheet.
FY2000-FY2001—Produce statistically valid compliance rates for
additional populations of regulated entities.
Beginning FY2001—Post results of selected measures on the Internet.
Responsible Offices: OECA's Immediate Office and OC.
-------
Action Plan for Innovation
C. Issue Environmental Performance Information on Selected Sectors. As EPA's first step toward
integrating and providing greater public access to more environmental information, the Agency released the
Sector Facility Indexing Project (SFIP) to the public last year. In the first phase of the SFIP, EPA profiled
approximately 650 individual facilities in five industrial sectors. This project gives citizens the ability to access on
the Internet multi-media environmental data about a facility, such as compliance with federal regulations,
chemical releases, and spills. Information about the location and production capacity of each facility, and
information on the population of the surrounding areais also available.
Subject to the availability of funds, EPA may undertake a second phase of SFIP. Phase II of the SFIP
would identify additional sectors for profiling and, similar to Phase I of SFIP, would provide detailed
information to the public about the performance of facilities in their communities, inforniregulated entities how
their performance compares to other facilities in the same sector, enable EPA to identify and address sector-
wide problems, and inform financial and insurance institutions of the compliance record and environmental
performance of particular facilities within a given sector.
Milestone: June 1999—Completed input from stakeholders on Phase I of the SFIP and issue
evaluationreport.
Phase n SFIP is an important priority for EPA. The timing for this expansion, however, is
contingent on the availability of funds. EPA will set milestones for implementing Phase n
at a later date.
Responsible Office: OECA-OC
D. Publish Compliance Data on the Internet. With the creation of EPA's new Information Office,
EPA is making significant commitments to improve the means by which the Agency collects, organizes, and
makes information available to the public. In addition, EPA's enforcement and compliance assurance program
is upgrading the national databases that house EPA and state compliance assurance and enforcement data and
is working with its State partners to improve the quality of that data. Subject to the FY2000-FY2001 budget
process, EPA's enforcement and compliance assurance program will continue to work with its state partners on
how best to release the data contained in its databases relating to compliance and environmental performance.
Milestones: Putting compliance data on the Internet is an important EPA priority. The timing for
this project is contingent on the availability of funds.
Responsible Offices: OECA-OC, OPPA
E. Evaluate the Effectiveness of Compliance Assistance, Compliance Incentives, and
Enforcement Activities. During the last five years, EPA and its State partners have undertaken a mix of
strategies aimed at achieving and maintaining compliance with environmental requirements. Such
strategies range from using compliance assistance or enforcement alone to the use of compliance
assistance in combination with compliance incentives and/or enforcement activities. EPA intends to
issue a study profiling several approaches used at the federal and State levels and examining the
effectiveness of such strategies in achieving compliance, deterring noncompliance, and solving
particular environmental problems and areas of noncompliance.
SEPTEMBER 1999
PAGE 17
-------
Innovative Approaches to Enforcement and Compliance Assurance
Milestones: November 1999—Initiate report evaluating effectiveness of selected compliance
assistance, compliance incentive and/or enforcement strategies.
December 2000—Finalize report.
Responsible Office: OECA-OPPA
F. Publish Primer on Environmental Enforcement and Compliance Assurance Program. EPA
will develop aplain language guide to increase the understanding of the public, regulated entities, and
environmental and grassroots organizations regarding EPA's compliance assurance and enforcement program.
For example, the primer will describe EPA's compliance assistance efforts and the compliance incentives
offered by EPA; how EPA decides to take formal enforcement; how the enforcement process works from the
point of inspection through the conclusion of a case by judgment or settlement; why penalties go to the U.S.
Treasury and not to EPA; and the results EPA achieves through its compliance assurance and enforcement
program.
Milestone: December 1999—Issue Final Primer on EPA's Environmental
Enforcement and Compliance Assurance Program.
Responsible Office: OECA-OPPA
-------
Action: Plan for Innovation
CHAPTER V: INNOVATIVE ENFORCEMENT APPROACHES
iis chapter commits the Agency to strengthen its enforcement and compliance assurance program by
J- expanding, in consultation with its State partners and stakeholders, innovative approaches to compliance and
enforcement. This means that EPA will continue to pursue new approaches to maximizing environmental compli-
ance. For example, EPA will build on its initial efforts to integrate compliance assistance, compliance incentives,
compliance monitoring and enforcement by making routine use of such integrated strategies for certain priorities.
The enforcement and compliance assurance program will also take action to (1) establish a single hotline for citizen
complaints; (2) publicize innovative Supplemental Environmental Projects (SEPs); and (3) promote community
involvement in the development of SEPs.
A. Expand Use of Integrated Enforcement Strategies That Combine Compliance Assistance,
Incentives, Monitoring, and Enforcement. EPA will expand its use of integrated strategies to address the
priorities of the enforcement and compli ance assurance program. EPA's experience has shown that these
techniques have been effective in addressing environmental and compli ance problems. EPA will analyze the
appropriateness of integrated strategies for each program priority and where appropriate, implement these
strategies in partnership with states through the Regional/State planning process. These integrated initiatives
would complement our ongoing compli ance assurance efforts by addressing environmental priorities associated
with major regulations, compli ance problems, or sectors. For example, while an integrated approach may be
appropriate for a sector, if the violations of a particular regulated entity within that sector threaten the
environment or human health, EPA may pursue enforcement if necessary to prevent or stop any actual harm.
The initiatives will be tailored to the particular compliance issue involved and include, as
appropriate, a mix of the following:
• Targeted compliance assistance (in addition to the general compliance assistance
information that the Agency provides);
• Compliance incentives, such as a window of opportunity to audit, disclose, and correct
past or ongoing violations, and receive penalty waivers or reductions in accordance
withEPA' s Audit and Small Business Policies;
• Compliance monitoring; and/or
• Targeted enforcement actions.
The sequencing and use of these elements may vary depending on the circumstances surrounding the
particular priority. For example, with respect to a recently promulgated regulation (e.g., the Safe
Drinking Water Consumer Confidence Report Rule), EPA typically would conduct compliance assistance first,
perhaps followed by an opportunity to audit, disclose, and correct violations, and/or compli ance monitoring, and
take enforcement actions as appropriate. If the priority involves an existing regulation, it may be more effective
to undertake a combined targeted enforcement and self-audit approach.
Milestones: June 2000—Develop the appropriate strategy for each priority area and
begin implementation. For the FY2002 - FY2003 planning cycle, and for
future planning periods, develop combined enforcement strategies as follows.
-------
Innovative Approaches to Enforcement and Compliance Assurance
January and February of the year preceding two-year cycle—Consult with
State and tribal partners and other stakeholders to identify key strategic priorities
(e.g., forFY2002-03 cycle, consult in Jan.-Feb. 2001).
April in the first year of the two-year cycle—Develop appropriate
strategies for each priority (e.g., for FY2002-03 cycle, develop strategies by
April2002).
Responsible Offices: OECA-ORE, OC and Regions
B. Establish a Single Hotline for Citizen Complaints. The enforcement and compliance assurance
program will establish a nationwide toll-free number to receive and respond to tips and complaints from the
public. This hotline would log tips, track them, and determine the appropriate referral to Regions, states, or
others.
Milestone: Establishing a "tips" line is an important priority for EPA. The timing for this
project, however, is contingent on receipt of funding.
Responsible Office: OECA-ORE
C. Issue Guidelines for Community Involvement in Supplemental Environmental Projects (SEPs).
The enforcement and compliance assurance program will draft a new guidance establishing a process for
involving communities early in the settlement of an enforcement action, so that they can suggest or provide
meaningful input on Supplemental Environmental Projects (SEPs). The enforcement and compliance assurance
programs currently have a workgroup effort underway to develop this guidance.
Milestone: March 2000—Issue guidance.
Responsible Offices: OECA-ORE and Region 4
D. Publicize Innovative SEPs. The enforcement and compliance assurance program will publicize
innovative projects undertaken pursuant to EPA's Supplemental Environmental Projects Policy. For example
innovative projects manyprevent pollution, encourage citizen monitoring, and provide training ortechnical
support to the regulated community.
Milestone: February 1,2000—Issue bulletin.
Responsible Office: OECA-ORE
SEPTEMBER 1999
-------
Action Plan for Innovation
CHAPTER VI: CONCLUSION
rTTie five-year anniversary of the reorganization of EPA's enforcement and compli ance assurance program
J. gave EPA a good opportunity to review the effectiveness of the program and to identify opportunities for
improvement. The two conferences held in early 1999, plus other stakeholder discussions, produced many
valuable ideas for maximizing the program's effectiveness.
The ideas adopted by this Action Plan arose from a productive dialogue with EPA's stakeholders,
and EPA will continue to seek the views of stakeholders during the implementation of the Action Plan.
The Agency looks forward to following through on the commitments in the Action Plan, and working with
stakeholders to improve the enforcement and compli ance assurance program.
SEPTEMBER 1999
-------
------- |