i       UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                      WASHINGTON, D.C. 20460



                          MAR -5  1985
                                                    OFFICE OF ENFORCEMENT
                                                      AND COMPLIANCE
                                                       MONITORING
MEMORANDUM

SUBJECT:  Update of General Enforcement Policy Compendium  -
                      .Memorandum
FROM:     Covlrtney M.
          Assistant Administrator for Enforcement
            and Compliance Monitoring (LE-133)

TO:       Assistant Administrators
          Office of General Counsel
          Associate Administrators
          Regional Administrators
     The attached seven documents are an update of the General
Enforcement Policy Compendium.  Six of these new documents
should be added to the second edition of the compendium that
was issued on October 11, 1984.  The new policies are:

          0 Guidance for Implementing EPA's Contractor
            Listing Authority (GM-31)

          0 Implementation of Mandatory Contractor
            Listing (GM-32)

          0 Guidance for Calculating the Economic Benefit
            cf Noncompliance for a Civil Penalty Assess-
            ment (GM-33).

          0 Policy Against "No Action" Assurances (GM-34)

          0 Implementing Nationally Managed or Coordinated
            Enforcement Actions:  Addendum to Policy Frame-
            work for State/EPA Enforcement Agreements  (GM-35)

          0 The Use of Administrative Discovery Devices in
            the Development of Cases Assignee to the Office
            of Criminal Investigations (GM-36)

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                              — 2—

     The seventh policy, "Functions and General Operating
Procedures for the Criminal Enforcement Program (GM-15)," is a
replacement for a similar previously issued document contained
in Volume I of the Compendium.  Since the establishment of the
Office of Criminal Enforcement, operational changes have
necessitated revising operating procedures for the criminal
enforcement program.  On January 1, 1985, OECM issued this new
procedures document.  Please discard the previously issued
operating procedures for the criminal enforcement program
dated October 27, 1982, and the interim operating procedures
issued in January of 1984.  Please label the new document
"GM-15" in the Compendium.

     Also attached is a revised chronological table of contents
and a topical index of the currently effective general enforce-
ment policies and guidance documents.  The revised table of
contents and index replaces all previously issued versions.

     Please inform your staff that the complete Compendium
consists of 36 documents numbered sequentially GM-1 through
GM-36.  Copies of the Compendium updates are available through
OECM's Legal Enforcement Policy Division until the supply is
exhausted.

     If you or your staff would like copies of any of the
Compendium documents, please contact Arthene Pugh at
FTS 475-8784.

Attachments

cc:  Regional Counsels
     NEIC
     EPA Library
     Department of Justice

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 c.
V-'              - •     '   •'' • ' ' •'•'•'>• ' -l--'"> •'-• ri;OTi:CTI()N AGENCY
                               OCT 30 1985
                                                          Ol I IC1 Ol [SK1RCI Ml NT
                                                            AMI COMIM IASCF
                                                             MOMIOKINl.
    MEMORANDUM

    SUBJECT:  Update of General Enforcement  Policy  Compendium
              Transmittal Memorandum
    FROM:     Courtney M. Price'
              Assistant" Administrator for  Enforcement  and
                Compliance Monitoring (LE-133)

    TO:       Assistant Administrators
              Associate Administrators
              Office of General Counsel
              Regional Administrators
         The attached seven documents are  an  update  of  the  General
    Enforcement Policy Compendium.  This update  consists  of new
    policies which have been implemented since the  issuance of the
    March 5, 1985, update.  The new policies  are:

              0  The Role of EPA Supervisors  During  Parallel
                 Proceedings (GM-37)

              0  Remittance of Fines and Civil Penalties  (GM-38)

              0  Enforcement Settlement Negotiations (GM-39)

              0  Revised Regional Referral Package Cover
                 Letter and Data Sheet  (GM-40)

              0  Implementing the State/Federal  Partnership
                 in Enforcement:  State/Federal  Enforcement
                 "Agreements" (GM-41)

              0  Form of Settlement of Civil  Judicial Cases
                 (GM-42)

              0  Enforcement Document Release Guidelines  (GM-43)

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                              -2-

     Also attached is a revised chronological table of contents
and a topical index of the currently effective general enforce-
ment policies and guidance documents.  The revised table of
contents and index replaces all previously issued versions.

     The complete Compendium now consists of 43 documents
numbered sequentially GM-1 through GM-43.  As new policies are
developed, OECM will transmit them to you for inclusion in the
Compendium.  Copies of the complete Compendium including all
updates are available through OECM's Legal Enforcement Policy
Division.

     If you or your staff would like copies of any of the
Compendium documents, please contact Arthene Pugh at FTS
475-8784.  We are also planning to print up binders for the
General Enforcement Policy Compendium.  If you would like a
binder for your office's Compendium, please also contact
Arthene Pugh.

Attachments

cc:  Regional Counsels
     NEIC
     EPA Library
     Department of Justice

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   TABLE OF  CONTENTS  -  GENERAL  ENFORCEMENT  POLICY  COMPENDIUM
TITLE OF
DOCUMENT
DATE OF
DOCUMENT
TAB
Visitor's  Releases and Hold            11/8/72
Harmless Agreements as a Condition
to Entry to  EPA Employees on
Industrial Facilities
Professional Obligations of
Government Attorneys

Memorandum of Understanding Between
the Department of Justice and the
Environmental Protection Agency

"Ex Parte" Contacts in EPA
Rulemaking

Conduct of Inspections After the
Barlow's Decision

Contacts with Defendants and
Potential Defendants in
Enforcement Litigation
"Ex Parte" Rules Covering Communica-     12/10/81
tions Which are the Subject of Formal
Adjudicatory Hearings

Quantico Guidelines for Enforcement       4/8/82
Litigation

Agency Guidelines for Participation       4/30/82
in Grand Jury Investigations

Reorganization of the Office of           5/7/82
Regional Counsel (includes
Administrator's Memorandum of
September 15, 1981)

Coordination of Policy Development       6/23/82
and Review
               GM - 1
4/19/76
6/15/77
8/4/77
4/11/79
10/7/81
GM -
GM -
GM -
GM -
GM -
2
3
4
5
6
               GM - 7
               GM - 8
               GM - 9
               GM - 10
               GM - 11

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TABLE OF CONTENTS
PAGE 2
TITLE OF
DOCUMENT
DATE OF
DOCUMENT
TAB
General Operating Procedures for         7/6/82
EPA's Civil Enforcement Program

Case Referrals for Civil Litigation      9/7/82

Criminal Enforcement Priorities         10/12/82
for the Environmental Protection
Agency

Functions and General Operating          1/7/85
Procedures for the Criminal
Enforcement Program

Regional Counsel Reporting               8/3/83
Relationship

Guidance for Drafting Judicial  •        10/19/83
Consent Decrees

Implementation of Direct Referrals      11/28/83
for Civil Cases

Consent Decree Tracking Guidance        12/16/83

Guidance on Evidence Audit of
Case Files                              12/30/83

Policy on Civil Penalties                2/16/84

A Framework for Statute-Specific         2/16/84
Approaches to Penalty Assessments

Guidance Concerning Compliance with     11/21/83
the Jencks Act

Working Principles Underlying EPA's     11/22/83
National Compliance/Enforcement
Programs
               GM - 12


               GM - 13

               GM - 14



               GM - 15



               GM - 16


               GM - 17


               GM - 18


               GM - 19


               GM - 20

               GM - 21

               GM - 22


               GM - 23


               GM - 24
Federal Facilities Compliance
  1/4/84
GM - 25

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TABLE OF CONTENTS
PAGE 3
TITLE OF
DOCUMENT
DATE OF
DOCUMENT
TAB
Headquarters Review and Tracking
of Civil Referrals

Guidelines for Enforcing Federal
District Court Orders

Liability of Corporate Shareholders
and Successor Corporations for
Abandoned Sites Under CERCLA

Guidance on Counting and Crediting
Civil Judicial Referrals

Policy and Procedures on Parallel
Proceedings at the Environmental
Protection Agency

Guidance for Implementing EPA's
Contractor Listing Authority

Implementation of Mandatory
Contractor Listing

Guidance for Calculating the
Economic Benefit of Noncompliance
for a Civil Penalty Assessment

Policy Against "No Action"
Assurances

Implementing Nationally Managed or
Coordinated Enforcement Actions:
Addendum to Policy Framework for
State/EPA Enforcement Agreements

The Use of Administrative Discovery
Devices in the Development of Cases
Assigned to the Office of Criminal
Investigations

The Role of EPA Supervisors
During Parallel Proceedings
 3/08/84


 4/18/84



 6/13/84


 6/15/84

 1/23/84



 7/18/84


 8/08/84


11/05/84



11/16/84


 1/04/85
 2/16/84
GM - 26


GM - 27



GM - 28


GM - 29

GM - 30



GM - 31


GM - 32


GM - 33



GM - 34


GM - 35
GM - 36
 3/12/85
GM - 37

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TABLE OF CONTENTS
PAGE 4
TITLE OF
DOCUMENT
DATE OF
DOCUMENT
TAB
Remittance of Fines and Civil
Penalties

Enforcement Settlement
Negotiations

Revised Regional Referral
Package Cover Letter and
Data Sheet

Implementing the State/
Federal Partnership in
Enforcement: State/Federal
Enforcement "Agreements"

Form of Settlement of Civil
Judicial Cases

Enforcement Document Release
Guidelines
 4/15/85


 5/22/85


 5/30/85



 6/26/84
 7/24/85


 9/16/85
GM - 38


GM - 39


GM - 40



GM - 41
GM - 42
GM - 43

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                           TOPICAL INDEX
GENERAL ENFORCEMENT POLICY - CIVIL


Administrative and General Procedures

Memorandum of Understanding Between the Department
of Justice and the Environmental Protection Agency 	 GM - 3

Quantico Guidelines for Enforcement Litigation  	 GM - 8

Reorganization of the Office of Regional Counsel  	 GM - 10

Coordination of Policy Development and Review 	 GM - 11

General Operating Procedures for EPA's Civil
Enforcement Program	GM - 12

Case Referrals for Civil Litigation 	 GM - 13

Regional Counsel Reporting Relationship  	 GM - 16

Policy on Civil Penalties 	 GM - 21

A Framework for Statute-Specific
Approaches to Penalty Assessments 	 GM - 22

Working Principles Underlying EPA's
National Compliance/Enforcement Programs 	 GM - 24

Federal Facilities Compliance Program 	 GM - 25

Liability of Corporate Shareholders
and Successor Corporations for Abandoned
Sites Under CERCLA 	 GM - 28

Guidance for Implementing EPA's
Contractor Listing Authority 	 GM - 31

Implementation of Mandatory Contractor
Listing 	 GM - 32

Guidance for Calculating the Economic
Benefit of Noncompliance for a Civil
Penalty Assessment 	 GM - 33

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TOPICAL INDEX
PAGE 2
Implementing Nationally Managed or Coordinated
Enforcement Actions: Addendum to Policy Framework for
State/EPA Enforcement Agreements 	 GM - 35

Remittance of Fines and Civil Penalties 	 GM - 38

Implementing the State/Federal Partnership
in Enforcement: State/Federal Enforcement
"Agreements" 	•	 GM - 41

Enforcement Document Release Guidelines 	 GM - 43
Attorney Conduct

Professional Obligations of Government Attorneys 	 GM - 2


Case Development/Litigation

Memorandum of Understanding Between the Department
of Justice and the Environmental Protection Agency 	 GM - 3

Ouantico Guidelines for Enforcement Litigation 	 GM - 8

Case Referrals for Civil Litigation 	 GM - 14

Guidance for Drafting Judicial Consent Decrees 	 GM - 17

Implementation of Direct Referrals for Civil Cases 	 GM - 18

Guidance on Evidence Audit of Case Files 	 GM - 20

Guidelines for Enforcing Federal District
Court Orders 	 GM - 27

Guidance on Counting and Crediting
Civil Judicial Referrals 	 GM - 29

Policy Against "No Action" Assurances 	 GM - 34

Revised Regional Referral Package Cover
Letter and Data Sheet 	 GM - 40

Form of Settlement of Civil Judicial Cases 	 GM - 42

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TOPICAL INDEX
PAGE 3

Inspections

Visitor's Releases and Hold Harmless Agreements as a
Condition to Entry to EPA Employees on Industrial
Facilities 	 GM -  1

Conduct of Inspections After the Barlow's Decision 	 GM -  5


Rules Regarding Outside Contacts

"Ex Parte" Contacts in EPA Rulemaking  	 GM -  4

Contacts With Defendants and Potential Defendants
Enforcement Litigation 	 GM -  6

"Ex Parte" Rules Covering Communications On Issues
Which are the Subject of Formal Adjudicatory
Hearings 	 GM -  7


Tracking and Monitoring

Consent Decree Tracking Guidance 	 GM -  19

Headquarters Review and Tracking of
Civil Referrals 	 GM -  26


Negotiation and Settlement

Guidance for Drafting Judicial Consent Decrees 	 GM -  17

Enforcement Settlement Negotiations 	 GM -  39
GENERAL ENFORCEMENT POLICY - CRIMINAL
Administration and General Procedures

Criminal Enforcement Priorities for the Environmental
Protection Agency 	 GM - 14

Functions and General Operating Procedures for the
Criminal Enforcement Program 	 GM - 15

Guidance Concerning Compliance with the
Jencks Act 	 GM - 23

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TOPICAL INDEX
PAGE 4
Policy and Procedures on Parallel Proceedings
at the Environmental Protection Agency  	 GM - 30

The Role of EPA Supervisors During Parallel
Proceedings 	 GM - 37
Investigations

Agency guidelines for Participation in Grand Jury
Investigations	 GM - 9

The Use of Administrative Discovery Devices in the
Development of Cases Assigned to the Office of
Criminal Investigations 	 GM - 36

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            UNITED STA   S ErJVIRON'MLNTAL PROTECT • M  AGENCY
                             WASHINGTO;.'. D.C.  20-100
                          OFFICE OF THL' CKfliiRAI, COUNSEL
                                 UATCUSlDi: MALL
•                                             KOV   81372

1        Memorandum

'        To:           All Regional Counsels
                                                     f
        From:         Assistant Administrator for Enforcement and
                    •General Counsel
i                    V                  •'     .
        Subject:     Visitors' Releases and Hold I'.nralops Anreerncnts
                     as a Condition to Entry of Ei'A Employees on
                     Industrial Facilities  _
                                    FACTS

             As a condition to entry on industrial facilities, certain
        firms have refiuii'ed li?A cmployenn to sign ngrce.~rncs \;iiich
        purport to release the company from tort liability.'  The followius
        "Visitors Release" required by the Owens-Corning Fiberglas
       -Corporation is an example:

                               VISITORS RELEASE
           .   •
                     In consideration o! permission to enter the
                     premises of Owens-Corning Fiberglas Corporation
                     and- beiny aware of the risk of injury from •
                     equipment, negligence of employees or of other
                     visitors, and froir other causes, the undersigned
                     assumes nil risk, releases said corporation,
              •       and agrees to hold it harmless from liability
               ^     for any injury tto him or his property while upon
               *"     its premises. . .        .

                         READ CAIUTULIY BEFORE SICKING
                                                                       •
             In addition to such "Visitors Releases" employees or
        their supervisors have been asked to sign entry permits which
        include an ncrceinent that EPA will pay for any injury or damage
        resulting frora our activities at the facility.

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                          .QUESTIONS

     1.  Docs. signing such a "Visitors Release" effectively
waive the employee's right to obtain damages for tortiuus injury?

     2.  Hay EPA employees contractually obligate the Agency
to pay for any injury or damage caused by our activities?

     3.  May firms condition EPA's entry upon signing such
agreements?
                                             /•  .
                          AKSIJERS    -
            • f  ••       •
            * .•*
     1.  Generally, yes; enploye.es waive their right to
damages and the government is prevented froia^ exercising its
right of subrogation under the Federal Enployeos1 Compensation      \
Act.                                ••.

     2.  Ko; federal tort liability is established and limited
by the Federal Tort Clains Act, and such agreements are also
invalid as violative of the Anti-Deficiency Act.

     3.  Ko; EPA employees possess a right of entry under
both the Clean Air Act and the Federal Water Pollution Control
Act Amendments of 1972.                                	

                         DISCUSSION

     Although the precise effect of an advance release of
liability for negligence cannot be determined without reference
to the law of the state in which the tort occurs, we must
assume that such agreements are generally valid.  By signing
such agreements EPA employees nay effectively waive their right
to sue for damages and the government's right of subrogation
under the Federal Employees' Compensation Act, 5 USC 8101 et seq.

     The Restatement .of Contracts. Ch. 18, § 575 states:
               *             •
       j  A bargain for exemption from liability for the
          consequences of a willful breach of duty is illegal,
          and a bargain for exception from liability for
          the consequences of negligence is illegal if

          (a)   the parties are employer and employee and
                the bargain relates to negligent injury of
                the employee in the course of the employment,
               or,

          (b)  one of  the parties is charged with a duty of
               public  service, and the bargr.iu relates to
               negligence in the performance of any part
               of its  duty to the public, for which it has
               received or been promised compensation . . .

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With the exceptions mentioned in  the Rest-.af.rr.gnt.Ht
supra, no general public policy secns  to e>:iut against express
agreements for assumption of risk-, and  they need nut be
supported by consideration.  10 Prosro.r on Tores § 55 and
RcstatoncMit of Torts 2d, Ch. 17A,  §/i96H.  Despite  thia general
rule, cases arising under the Federal Tort Claims Act'involving
releases signed by civilian passengers  prior  to boarding ill-£.-ttod
government aircraft indicate that the  courts  do not favor such
agreements.  (Friedman v. T.ocUhncfl Alrr.rnft Corn.. 138 .F. Sup?.
530 (1936)—a release is no defense-against cross, willful, or
wanton negligence in Kew York; Rot-.o-.? v. -U.S.. 173 F. Supp. 547
(1959)—a release is ineffective  unless the flight is gratuitous;
Mongol 1 :u»r v. U. S. . 315 F2d ICO  (1963)—n release does not
destroy a cause of action for wrongful death  in Massachusetts.)
Such apparent judicial disfavor of advance releases is, of course,
insufficient justification for assuming the risk of signing then,
and ordinary prudence requires us to assume their validity.  Although
signing a release docs not affect the.  employee's ri;;ht to benefits
under 3'KCA, such compensation will ordinarily be much less than
might he recovered in a tort action against the negligent
corporation.

     Since the Federal Employees'  Cor.peanation Act, 5 USC 8131
and 8132,. provides  f.hac an enployee nr.y be required to assign
his right to sue third parties- to the  United  States ami that
the employee must, within limitations,  p.-iy over any recovery
from third parties as reimbursement of l-'KCA benefits, the
employee's release prejudices  the government's rights as well
as.his own.  Employees should  t'nerp.foro be instructed not to
sign s\ich releases under any clrcumstancp.s.

     Although an EPA employee's express assumption of the risk
of injury to himself may be valid, an  agreement which purports
to obligate EPA  to pay all dairages caused by  our activities is
not.  The Federal Tort Claims Act, 28  USC 2674 provides:
     «
             The United State:: shall be liable, respecting
       ^     the provisions o:: this  title relating to tort
             claims, in  the s.ine  manner and to  the sastc
             extent as'a private  individual under  like
             circumstances, but shall  not be  liable for
             interest prior  to judgment or for punitive damages  .

Congress has granted only a limited waiver of the  government's
sovereign immunity, and 28 USC 26SO lists exceptions  to the

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general wnivor .stated in 28 U3C 267/», £ii£r«i..  Exceptions which
might: be relevant in cnr.cn arising out of  the acuious of Ei'A
employees include 28 USC 26i'.0(a):

             Any claim based upon an net or omission of an
             employee of the Government, cxcrcir.in;; due care,
             in the execution of a statute or regulation,
             whether or not such statute or regulation be
             valid, or based upon the exercise or performance
             or the failure to exercise or perforn a discretionary
             function or duty on the part  of.-a federal agency
             or an employee of the Government, whether or not
            . „ the discretion involved be abused;
           •;'
and-28 USC  26SO(b):                  .....
   »                                       4
             Any claim arising out of assault, battery,
             false inprisonnsnt, false arrest, Malicious
             prosecution, abur.e of process, libel, Blander,
             misrepresentation, deceit, or interference
             with contract: rights .  .  .

Since the. government's tort liability is limited by statute,
an ndr.viuiatrative undertaking to expand such liability by
contract is probably invalid.  In any event, J-TA should not
create the  occasion for judicial resolution of thu question.

     An additional basis for considering such indemnification
agreements  invalid is  the Anti-Deficiency  Act, which provides
at 31 USC 665(a):
     •
             No officer or euj'loyee  of the United States shall
             raake or authorize an expenditure from or create
             or authorize an obligation under any appropriation
             or fund in excess of the amount available  therein.  .  .

Sr.nce the extent of the government's obligation is uncertain,
the  Comptroller General has seated  that a  contractual assumption
of  tort''liability is not a lawful obligation of the. United  States,
and  payment may not be r.ade pursuant to such agreements.   (7 CG  507,
15 CG 803,  and 35 CO 86.)  In fairness to  companies which may
rely upon the validity of such indemnity provisions, employees   •
should be instructed not  to sign  them.

     Inasmuch as the Clean Air Act  and the Federal Water
J'ollution Control Act  Amendments of  lST72~~grant EPA employees
a  right of  entry to corporate facilities,  a company may not

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lawfully condition the e::crcise of this riyaU upon ti.c signing
of a release or indemnity agreement.  The Clean Air Act
provides, at 42 USC 1837c—5(a) (2) :

             . . . thn Administrator or his authorized
             representative, upon presentation of his
             credentials—(A) r.hall have n right of entry
             to, upon, or through any premises in which
             an emission source is located or in which any
             records required to be maintained' under paragraph
             (1) of this section are located . . .
             ' f
            » •
The procedure for enforcement of this right is provided in
42 USC 1857c— 8:
                                           *

     (a)(3)  Whenever, on the basis 6T any information
     available to him, the Administrator finds that any
     person is; in violation of. . . any requirement
     of  section 1857c—9 of this title, he r.ny issue an
     order requiring such person ro comply with such section
     or  requirement, or he may briny a civil action in
     accordance with subsection (b) of this section.
     (b)  The Administrator may coir.TRncc »a civil action for
     appropriate relief, including a permanent or  temporary
     injunction, whenever any person—(A) fails or refuses
     to  comply with any requirement of section lS57c—9
     of  this title.

When, n firm refuses entry to an KPA employee performing his
functions under the Clean Air Act, the employee may appropriately
cite the statute and remind the company of EPA's right to seek
judicial enforcement.  If the company persists in  its rcf-usal,
EPA should go to court in preference to signing a  "Visitors
Release."

     In  addition to procedure for judicial enforcement
similar^to that of  the Clean Air Act, the Federal Water
Pollution Control Act Amendments of 1972 reinforce UPA's
right of entry with criminal and civil penalties.  Section 309
states:

     (c)(1)  Any person who willfully or negligently violates
     section  .  .  .308 of this Act  (Note—Section 308 establishes
     the rij;ht of entry). . . shall be punished by a fine of not
     less than $2,500 nor wore than §25,000 per day of violation,
     or  by imprisonment for not more than one year, or by both.

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     If the conviction is for a violation co:iroi(.CcJ nftcr
     a first conviction of sucli person under this paivu-.rap'.i,
     puni.'O'.r.ant nhall be by .". fine of noc i:iorc than $;>U,OOvJ
     per day of violation, or by irsipriconiiient for not more
     than two years, or by both.
     (3)  For the purposes of thin subsection, the term  'person'
     shall inc:in, in addition to the definition contained in
     section 502(5) of this Act, any responsible corporate
     officer.
     (d)  Any person who violates section .  . ,308 of this Act.
     and any person who violates any order issued by the
     Administrator under subsection  (a) of this section
     (Note—subsection (a) provides for administrative orders
     to enforce the right of entry), shall be subject to a
    . civil penalty not to exceed $10,000 per day of such
  •  violation.

     In SRC v. Sen trie. 387 U.S. 5-U0.967) the Supreme Court
reversed the conviction of a corporation for refusal to  admit
building inspectors of the City of Seattle.  Justice White
held that the Fourth nnd Fourteenth Arr.cnJir.cnts required  a
warrant for such inspections, even where the search \7as
reasonably related to protecting the public health and safety
and even where a corporation, rather than an individual, was
the; subject.  Under Sen evidence obtained by inspectors;  of
the Food and Druy Administration has been held inadmissible
v.'iisrc  thu inspectors obtained consent  to entrcr by  threatening
prosecution under 21 USC 331, which  provides criminal penalties
for refusal to permit entry, U.S. v.' Kramer  Cror.ory Co..
418 F2d 987 (iJth Cir., 1969).  Although two  sioru recant  Supreme
Court,  decisions, Colonnade entering  Corn, v. U.S.. 397 U.S. 72
(1970) and U.S. v. Cisunll. 92 S. Ct.  1593  (1972), may create
c'.oubt  as to whether See retains its  original vijjor  (sec
Memorandum of the Assistant to the Deputy General Counsel,
September 29, 1972),  the possibility that evidence obtained
under  the FWPCA Amendments of 1972 will be ruled inadmissible
is a risk EPA need not assume.

     S£nce the Amendments provide for  judicial enforcement of
the rijjht of entry, EPA employees should be  instructed not
to mention the civil or criminal penalties of Section 309
when faced with a refusal to permit  entry.   When such refusals
occur, this office, should be informed  inmed lately so that a
decision can be made as to whether  to  issue  
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       UN'TED STATES ENVIRONMENTAL PROTECTION AGENCY

                        WASHINGTON. D.C. 20460
                         19 APR 1976
   OFFICE Of
GENERAL COUNSEL
MEMORANDUM

TO:       All Attorneys - Office of General  Counsel  and
                          Office of Enforcement
          Regional Counsel

FROM:     Robert V. Zener
          General Counsel

          Stanley I.'. Legro
          Assistant Administrator for^nforcemejrt

SUBJECT:  Professional Obligations of Government Attorneys

     We believe it might be useful to discuss some of  the obligations
that we have as attorneys for the Agency,  both under the Canons  of
Professional Ethics and under various provisions of law.  The  following
is not intended to be a complete statement of a government  attorney's
professional obligations; rather, it is intended to highlight  some
matters which may deserve attention.

     1.  Confidential commercial or financial  information.  The
Agency frequently is the recipient of confidential  commercial  or.
financial information.  Under 18 U.S.C. 1905,  disclosure of such
information without consent of the firm.involved is  against the
law, and the Agency's regulations carry out  this prohibition.
40 C.F.R. 2.119.  Of course, this prohibition  is binding on all
employees of the Agency.  But we think it  especially appropriate
to remind Agency attorneys of this obligation  of confidentiality,
since Agsncy attorneys are so frequently entrusted  with this type
of information.

     2.  Civil or criminal investigations.   Agency attorneys are
frequently involved in investigations which  could lead to referral
of cases to the Department of Justice for  civil  or criminal prose-
cution.  Extreme care should be taken in making any  public  statement

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 concerning  such  investigation,  particularly where a possible criminal
 violation  is  involved.   Neither the  fact  that an investigation 1s in
 progress nor  the fact that  a  case  has  been referred to the Department
 of  Justice  should be disclosed  except  where authorized by current
 policy  or  specifically  authorized.   And in any  event, a public
 statement  should not go beyond  the corrjnent that an investigation is
 in  progress;  no  conclusions should be  stated.   Any statement that
 the Agency  believes a violation has  occurred may be unfair to the
 company or  individuals  involved, and could prejudice the Agency's
 position in the  enforcement action.

      3.  Attorney-client communications.  The professional
 obligations of an attorney  to his client  attach to a government
 attorney's  relationship to  his  agency.  This includes the confi-
 dentiality  of attorney-client communications.   This also includes
 the obligation to represent the client's  interest within the
 bounds  of the law and professional ethics.  The following points
 deal  with specific problem areas:

         i)   Communications with the Department of Justice.  These
 should  be held in confidence unless  the consent of the attorney
 involved at the  Department of Justice  is  obtained.

        ii)   Legal advice.  In  the case of written opinions, some
 judgment has  to  be exercised with respect to public release.  Some
 written opinions  may constitute  "statements of  * * * interpretations
 which have  been  adopted by the  agency", in which case they must be
 disclosed under  the Freedom of  Information Act, 5 U.S.C.  552(a)(2)(B).
 In  some cases, a  written opinion is supplied on the understanding
 that  it will  be widely  distributed and made available to  the public.
 On  the other  hand, written opinions may be supplied on a  confidential
 basis,  in which case the confidence should be respected.   In any case,
 oral opinions are to be held in confidence unless the program people
 involved agree to disclosure.

     • iii)   Support of Agency  positions.   An attorney's  duty is to
represent his client's  position; and this  duty applies to government
attorneys.   Of course, while a  question is the subject of internal
debate, an attorney is  free to take any position he feels 1s
reasonable and lawful  on an issue;  and this could include disagreement
with the position taken  by any particular  program office.   However,

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 once the Agency has taken a position, the attorney should support it  '
 in dealings with the outside world.  If he feels  he cannot support
 it, he should request to be reassigned from that  matter or resign.

      iv)  Dealing with outside parties represented by an attorney.
 When you are dealing with outside parties whom you know to be
 represented by an attorney in connection with the natter in question,
 the Canons of Ethics require you to communicate with the attorney,
 unless the attorney consents to direct communication with his client.
 This can be especially significant in enforcement actions, where it
 would be highly unethical to attempt to obtain leads and evidence
 through direct communication with a party you know to be represented
 by an attorney on that particular matter, unless  the party's attorney
 has agreed to this method of proceeding.   Enforcement attorneys can,
 of course, participate in general or routine plant inspections and
 investigations.   However, once the company becomes aware of any
 potential enforcement action and their counsel  assumes responsibility
•for the matter,  consent from opposing counsel  would be necessary before
 any interviewing of company employees occurs during subsequent inspections.
 See Disciplinary Rule 7-104(a)(l) of the American Bar Association's Code
 of Professional  Responsibility.

      4.  Commitments on behalf of the Aoency.   EPA lawyers are often
 asked to make commitments to persons dealing with the Agency which
 would bind EPA to taking (or not taking)  certain  actions or authorize
 the other party  to embark on a certain course of  conduct.   Such
 commitments may  significantly impact on other parts of the Agency
 and it is important that final commitments not be made until the
 necessary coordination with the affected  offices  has been accomplished.
 This is, of course, a problem of working  in'a large organization, but
 as a natter of fairness to outside parties and  effective representation
 of the Agency, it is essential that there be internal  agreement before
 such commitments are made.   Of course, the practicalities of negotiation
 frequently make  it necessary to reach an  agreement at the staff level
 with outside parties without first obtaining the  necessary approvals
 within the Agency.   In this situation, the outside parties should be
 advised that approval within the Agency is necessary before the Agency
 is committed.

      5.  Ex Parte Communications.  EPA attorneys  are involved in a
 number of different types of formal  adversary proceedings, e.g., FIFRA
 cancellations  or f.'PDES hearings.   Usually an independent decision
 maker is involved,  such as a Federal  court judge  or an ALJ, but
 sometimes the  decision maker may be an EPA employee assigned to that
 particular proceeding.   Where formal  APA  procedures apply, or the
 Agency's rules of practice limit gA parte. communication, it is

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important that these prohibitions against ejx parte communications
be observed.  To insure continued public confidence in the integrity
of our proceedings, it is imperative that there be no actual  or
apparent improper influence by the staff presenting the Agency's
case to the presiding officer.

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3

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              MEMORANDUM OF UNDERSTANDING
                        BETWEEN
               THE DEPARTMENT' 0? JUSTICE
                          AND
          THE ENVIRONMENTAL PROTECTION AGENCY
     WHEREAS, the Department of Justice conducts the  civil

litigation of the Environmental Protection Agency;

     WHEREAS, the conduct of that litigation requires a

close and cooperative relationship between the attorneys
               *                                    .
of the Department of Justice and of the Environmental

Protection Agency;

     WHEREAS, the achievement of a close and cooperative
                                            •.
relationship requires a clarification of the respective

roles of the attorneys of the Department of Justice ana of

the Environmental Protection Agency;

     WHEREAS/ the Attorney General may decline to represent

the Agency in particular civil actions, in which case the
                          t
Agency nay be represented by its o*m attorneys; and

     WHEREAS, most challenges to and enforcement of regulatory

standards and procedures adopted by the Environmental Pro-

tection Agency involve]scientific, -technical, and policy

issues and determinations developed in lengthy rulemaking

proceedings  in which the Agency's  attorneys have-been involved

and can provide  the  necessary  expertise.

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                          - 2 -
     ?;0iv", therefore, the following memorandum of under-



standing is entered into betv/een the Attorney General of



the United States and the Administrator of the Environmental
   •                          *


Protection Agency for the purpose of promoting the efficient



and effective handling of civil litigation involving the  '  .



Environmental Protection Agency;



     1.   The Attorney General of the United States (herein-



after referred to as.the "Attorney General")  shall have



control over all, cases to which the Environmental Protection



Agency  (hereinafter referred to as the "Agency") or the



Administrator of the Environmental Protection Agency (herein-



after referred to as the "Administrator") is a party.



     2.   Khen requested by the Administrator, the Attorney



General shall permit attorneys employed by the Agency



 (hereinafter referred to as-MAgency participating attorneys")



to participate in cases involving direct review in the Courts



of Appeal, and shall also permit such attorneys to participate



in other  civil cases to which either the Agency or the
                        •
   .                                                       •

Adminlrstrator are a party, provided, however, that:



           (a)   the  Administrator  or his  delegate shall



 designate a specific Agency participating attorney for



 each cnso and shall communicate the name of such attorney



•in writing to the Attorney General;



           (b)   such Agency participating attorney shall be



 subject to the  supervision and control of the Attorney



 General;  and

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                           - 3 -


           (c)  if required by the Attorney General, an

Agency participating attorney shall be appointed as a

Special Attorney or Special Assistant United States

Attorney and take the required oath prior to conducting

or participating in any kind of Court proceedings.

     3.   Agency attorneys shall not file any pleadings
                     •               *
or other documents in a court proceeding without the prior
    " ^.
approval of the. Attorney General.

      -4.  'It is 'understood that participation by Agency

 attorneys under -this memorandum includes  appearances in

 Court, participation in trials  and oral arguments, partici-
                                             ^.
 pation in the preparation of briefs,  memoranda  and pleadings,

 participation in discussions with opposing  counsel, -including
                                                         •

 settlement negotiations, and"all other aspects  of case

 preparation normally associated with the  responsibilities

 of an attorney in the conduct of litigation; provided,

 however, that the Attorney-General shall  retain control  ovtr

 the conduct of all litigation.   Such control shall  include

 the rignt to allocate tasks between attorneys  employed by
                                      •                •
 the Department of Justice and Agency participating  attorneys.
                                     •
 •In allocating tasks between the Department's and  the Agency's
                            »
                                                     *
 attorneys, the Attorney General shall give due consideration

 *:o the substantive knowledge of the respective attorneys

 of the matter at issue so that the Government's resources

 are utilized to the best advantage.

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                          - 4 -




     5.   In the event of any disagreement between attorneys


of the Department of Justice and of the Agency concerning


the conduct of any case, the Administrator may obtain a


review of the matter in question by the Attorney General.


The Attorney General shall give full consideration to the views


and requests- of the Agency and shall make every effort to


eliminate disagreements, on a mutually satisfactory basis.  In


carrying out such reviews, the Attorney General shall consult


with the Administrator.  In implementing this provision, it


is understood that-the Attorney General will not be expected


by the Administrator to interfere with the direction of any


trial in progress.



     6.   The settlement of any case in which the Department


of Justice represents the Agency or the Administrator shall


require consultation with and concurrence of both the Adminis-



trator and the Attorney General.


     7.   The Administrator and the Attorney General shall


make an annual review of both .the Department's and the


Agency's personnel requirements for Agency litigation.   The


Attorney General and the Administrator will cooperate in


making such appropriation requests as are required to main-


 rain  their  respective  staffs  at a level adequate.to the  needs
                                                f«

 of  the Agency's  litigation.

       «                                       *     •

      8.'  The. Attorney General  shall establish specific


 deadlines,  not longer  than 60 days, within which the Depart-


 ment's Attorneys must  either file complaints in Agency cases

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                          - 5 -




 or  report  to  the  Attorney General why any such complaint



 has not been  filed.   In  the event any Department Attorney



 does not file a co.-nplaint, he shall thereafter submit further



 periodic reports  to  the  Attorney General until the complaint*



 is  filed or a decision is reached*that it shall 'not be filed.
                            .

 Copies of  the reports required by this section shall be pro-



 viced to the  Agency.if requested.



      9.    If the  Attorney General fails to file a complaint



 within 120 days, of the referral of a request for litigation



 and a litigation  report  by the Agency to the Attorney General,



 then the Administrator may request the Attorney General to

                                            %

"file a complaint  within  30 days.  Failure of the Attorney  -



 General  to thereafter file a  complaint within the said 30
               *


 days may be considered by  tHe Administrator or his delegate



 to be a failure of the Attorney General to notify the Adminis-



 trator within a reasonable time that he will appear in litiga-



 tion for purposes of Section  305 of the Clean Air Act, 42



 U.S.C. 1857h-3, Section  506 of the Federal Water Pollution



 Control Act,  33 U.S.C. 1366,  or Section 1450 of the Safe



 Drinking Water Act,  42 U.S.C. 300j-9; provided, however, that



 the failure of the Attorney General to file  a coinplair.t



 within the time period requested by the Administrator  in a



 case in which the Administrator requested  iimcdiate action



 under Sections 311(e) and  504 of the Federal Water Pollution



 Control  Act,  33 U.S.C. 1321,  1364; Section  303  of the  Clean

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                           - 6 -



Air Act, 42 U.S.C. 1857h-l; or Section 1431 of the Safe


Drinking Water Act, 42 U.S.C; 300i; to protect public


health may also be considered by the Administrator to be


a failure of the Attorney General to so notify the


Administrator under Section 305 of the Clean Air Act, 506


of the Federal Water Pollution Control Act or Section 1450


of the Safe Drinking Water Act.
  V.
     10.  All requests of the /xgcncy for litigation shall


be submitted by the Agency through its General Counsel or


its Assistant Administrator for Enforcement to the Assistant


Attorney General for the Land and Natural Resources Division
                           • •%

or for the Civil Division, except matters requiring an


immediate temporary restraining order may be submitted by


regional Administrators of the Agency simultaneously to a


United States Attorney and the appropriate Assistant


Attorney General.  All requests for litigation shall be


accompanied by a standard litigation report which shall


contain such information as shall be determined from tir.e-


to-time by the Attorney General to bo necessary in order to


prosecute Agency litigation.  Similar reports shall also' be


provided for suits in which the Agency or the Administrator


is a defendant, as requested by the Attorney General.


     11.  The Agency shall make the relevant file of any


mo'ctcr that is the subject of litigation available to


attorneys for the Department of Justice at a convenient

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                         - 7 - .   .
 location when  a  request  for litigation is submitted or
 when  the Department  is required to defend the Agency or
 the Administrator.
      12.   The  Administrator shall undertake to review the
 Agency's procedures  for  the preparation of the record in
 cases involving  direct review in the Courts of Appeal,
 including  analyses of such natters as assembly, indexing,
 pagination,  timing of preparation, and the allocation of
 tasks between  the Agency and the Department.  The Adminis-
 trator shall consult with the Attorney General on the
 re-examination of these  procedures.
      13.   The  negotiation of any agreement to be filed  in
 court shall require  the  authorization and concurrence of
 the Attorney General.
      14.   In conducting  litigation for the Administrator,, the
 Attorney General shall defer to the Administrator's inter-
 pretation  of scientific and technical matters.
      15.   Nothing in''this agreement shall-affect any authority
•-of the Solicitor General to authorize or decline to authorize'
 appeals by the Government from any district court to any
                                           • ' ..     •      •
                                    §• •
 appellate court or  petitions to such courts for the issur.r.cs
 of extraordinary writs, such as the authority conferred by
 28 CFR 0.20,  or to  carry out his traditional functions with
 regard to appeals to or petitions for review by the Suprc*r.e:
 Court.                     	
       16.  In  order  to.effectively implement the terns of this
 Memorandum,  the Attorney General and the Administrator will

-------
                         - 8 -
transmit co.pics of this Memorandum to all personnel affected

by its provisions.  This Memorandum shall not preclude the

Department and the Agency from entering into mutually satis-'

factory arrangements concerning the handling of a particular

case.

     17.  This Agreement shall apply to all cases filed on or

after the date of approval of this Agreement by the .Attorney

General and the Administrator.

     18.  The Attorney General and ths Administrator nay

delegate their respective functions and responsibilities

under this Agreement.
                           • *» .                        *
     19.  The Department and  the Agency shall adjust the

conduct of cases arising before the effective date of this

Agreement in a manner consistent with the spirit of this

Agreement.
                          GRIFFIN  B. BELL
                          Attorney General
                          Date;
                                           .
                          Adminii'trr.tor
                          Environme'-.taJ.  Protection Agency
                          Date
ronmcjvcaj. rrotccticn AC

    /  I       .^»   ^^ *

     I   "    " f    *.

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   -' ' UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                      WASHINGTON. D.C. 20-150
                        AUG 2 11981                    -.

                          •   '                        -             0
                                           . THE ADMINISTRATOR
Honorable William  French  Smith                              .
The Attorney General
Washington, O.C.   20530

RE:   Memorandum of Understanding  Between  the  Department
      of  Justice And the Environmental  Protection  Agency

Dear  Mr. Attorney  General:

      Under Paragraph  10 of  the  Memorandum of  Understanding
between  the Department of Justice and  the Environmental
Protection Agency  dated June  15,  1977  (copy enclosed),
EPA's General Counsel and Assistant Administrator for
Enforcement, EPA,  were given  authority to request civil
litigation from the Department  of Justice.

      On  July 1, 1981, the Environmental Protection Agency
underwent an'internal reorganization which resulted, in
part, in the abolishment  of the Office of Enforcement as
well  as  the position  of Assistant Administrator for
Enforcement.  In addition,  the  Office  of  General  Counsel was
placed under an Associate Administrator for Legal Counsel and
and Enforcement*.
               \
      The principal enforcement  authorities previously
delegated to the Assistant  Administrator  for  Enforcement
•vere  redelegated to the Associate Administrator for Legal
Counsel  and Enforcement on  July 14, 1981. Therefore, the
authority previously  vested in  the Assistant  Administrator
for Enforcement under the above referenced memorandum now
resides  in the Associate  Administrator for Legal  Counsel and
Enforcement.

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                          -2-
     Accordingly, requests to the Department of Justice for
routine civil litigation under the terms of the Memorandum
of Understanding will now come from the Associate Administrator
for Legal Counsel and Enforcement. The present Associate
Administrator for Legal Counsel and Enforcement is Mr. Frank
A. Shepherd.

     This reorganization and redelegation does notr of
course, affect the authority of Regional Administrators who
may continue to request litigation under Paragraph 10 of the
Memorandum of Understanding in matters requiring an immediate
temporary restraining order.
                           Sincerely yours,
                           Anne M. Gorsuch
cc:  Assistant Attorney General
     Land and Natural Resources Division

     Assistant Attorney General
     Civil Division

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r

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\ X3S?   UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                      |p   ' WASHINGTON.-D.C.  2WGO  IP  •'

                                 AUG  - 4 1977
                            • .   .     ' . •            • •              THE ADMINISTRATOR - •
                                    "••"."*      • •
                              .•"""•      • •'          .      *
       StlB'JECT:  "Ex Parted Contacts in EPA Rulesaking
                           • •   »                             *
                       • ••••••••   ...     ^ •  •   ..             .    .  .
       FROM:   .  The Administrator   V-  .     '."  •
              - ••  ••  •       ••>.     •.>'   ••. ;•:•-.:   .  .        ••-....•   .'•
      • TO:    .   Addressees    .    "  '       • .    "  '.    »-••_:    : -
      ••-••••     .      •- •     ' '    ' .   '    ^    *   '  '  .    •   .-  . .
                            •    •     •        •                      •
            •In this memorandum I  set-forth 'the guidelines all EPA
       employees should follow in. discussing the merits of proposed
       rules with  interested persons outside the Agency during the     '.  . •
       period between  proposal and  promulgation.- the Deputy Administrator
       and  I and our  immediate staffs will al.so  observe these' guidelines.
      '-.•.'        •   •      .-•..••   .    -          ' -    "        •   .'•
        . •  " The General Counsel has  recently informed -you. that such
       conversations'might result in -a rule being held-illegal if they
       took place  without  notice  and opportunity  for other interested
       persons' to  participate. .That advice was  based on  a recent decision
       of  the United  States Court of Appeals for the District of Columbia    ' .    ,
       Circuit.  Home Box  Office  Inc. v.  FCC.  D.  C. Cir.  Ko. 75-1230      • .: ".;. .
        (decided  March 25,  1977).A subsequent opinion by the sane court    "
       has  moderated  that  legal danger substantially. 'Action for Childrens*
       Television  v.  FCC,  D.  C. Cir. Ho.  74-2005 (decided July 1, 1377).     •
      •   '     .      -....•••     '.   •'                      •  •  .§
          •  However,  the  legal  danger has not  disappeared. .More fundamentally,  •
        I do not  believe .that  EPA. should  base or appear to bsse its regulatory  ••. '
      • decisions on- information  or arguments presented informally that do not
       appear  on the public record. .Accordingly, I am estaolisMng the following
       guidelines.    ":-....•••       .  •   •   .    "           "      **
                                           -   .    •"••    -   •-   •  *       •'.-'.•
            Behavior during crucial period between  Proposal and Promulgation  • '
         ...      • .  •  •       • •                       '    •" '
       .  : '' During the period between  proposal .and promulgation of  a -rule all   •
        employees may arid shou.ld be encouraged  to respond  to-inquiries  about   .  .
        the rulej explain how it would  work*  and attend public meetings of
        interested  groups (such as trade association conventions).
                                .-.-•,••.   •       .               .  *.
          •  During this period agency employees may (and  often should) hold
       meetings  with interested persons for.the purpose  of better understanding
        any technical scientific and engineering issues  involved  or  discussing

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                                                        ••  •
                                                       .• •
                          •                               •  »
                      •       *                     •

  the broader questions involved. In all  cases, however, a-written
  summary of the significant points made at the meetings must bs placed
  in the ccwment file. •              •  *           .'     . .    •  .

                         •     •      • •   •              ...
                     •           •          •*         »      •
      This requirement applies  to every form of discussion with outside-
  interested persons whether -at. a trade  association meeting, at EPA, -or
  over the telephone as long as  the discussion is significant.  The  .
  memorandum should be prepared  and forwarded  within'two or three days'
  of the meeting at the latest.  .All  net? data  or significant arguments
  presented  at the meeting .should be  reflected in tha nsnorandun. '    •  .
  Discussions of generalities or. simple explanations of how tha rule
  v/ould v/ork' need not be included. •/     .     .       '

        .••••••       •••'•.'      . '   '.
      I will continue  to explore with the  General Counsel's office and
 others whether further actions to ensure  that we provide full notice
 and opportunity for comment in  all our  procedure
    ..   ••-    • ••
-.fr^rM-sA'riaa-ssj.BBff.
ADDRESSFFC   '  "  '   '   '   '   ' •  '         '    .    '  "
 ADDRESSEES
                 '    '             •
 Deputy.Administrator    .    .
 Assistant Administrators       '
 Deputy. Assistant Adainistrators      .
 Office Directors

•Regional  Administrators      m                        .('
 Associate General Counsels   *            .                       • '. V
 Regional  Counsels      '   "     *' •                "

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r

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           UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                           WASHINGTON, D.C.  20460
MEM3RSSDUM                                                OFF1CE or enroRCEMENT

TO:       Regional Administrators
          Surveillance and Analysis Division Directors
          Enforcement Division Directors

FROM:     Assistant Administrator
           for Enforcement    _____  ____    — • -  ........ -    _-  .

SUBJECT:  Conduct of Inspections After the  Barlow's  Decision


I.   Sunroary

     This document is intended to provide guidance to the  Regions in
the conduct of inspections in light of the  recent Supreme  Court decision
in Marshall v. Barlow's, Inc.,  _ U.S.^ _ , 98 S. Ct. 1816  (1978).
The decision bears upon the need to obtain  warrants  or othef process fcr
inspections pursuant to EPA-administered Acts.

     In Barlow' s , the Supreme Court held that an QSHA inspector was  not
entitled to enter the non-public portions of a  work  site without  either
(1) the owner's consent, or (2) a varrant.   The decision protects the
owner against any penalty or other punishment for insisting  upon  a warrant.

     In summary, Barlow's should only have  a limited effect  on EPA
enforcement inspections:

     o Inspections will generally continue  as usual;

     o Vhere an inspector is refused entry, EPA will seek  a  warrant  through
       the U.S. Attorney;

     o Sanctions will not be imposed upon owners of  establishments who insist
       on a varrant before allowing inspections of the non-public portions
       of an establishment.

     The scope of the Barlow's decision is  broad . It affects all current
inspection programs of EPA, including inspections conducted  by State
personnel and by contractors.  The Agency's procedures for inspections,
particularly vtoere entry is denied, vere largely in  accord with
the provisions of Barlow's before the Supreme Court  issued its ruling .
Nevertheless, a number of changes in Agency procedure are  terranted.
Thus, it is important that all personnel involved in the inspection
process be familiar with the procedural guidelines contained in this docu-
ment.

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                                   - 2 -
     This document focuses on the preparation for and conduct of inspec-
tions, including (1) how to proceed when entry is denied, (2) under what
circumstances a warrant is necessary, and (3) what showing is neces-
sary to obtain a warrant.

II.  Conduct of Inspections

     The following material examines the procedural aspects of conducting
inspections under EPA-administered Acts.  Inspections are considered in
three stages:  (1) preparation for inspection of premises, (2) entry onto
premises, and (3) procedures to be followed where entry is refused.

   A.  Preparation

       Adequate preparation should include consideration of the following
factors concerning the general nature of warrants and the role of personnel
conducting inspections.

       (1) Seeking a Warrant Before Inspection

       The Barlow's decision recognized that, on occasion, the Agency may
wish to obtain a warrant to conduct an inspection even before there has
been any refusal to allow entry.  Such a warrant may be necessary when
surprise is particularly crucial to the inspection, or when a company's
prior bad conduct and prior refusals make it likely that warrantless
entry will be refused.  Pre-inspection warrants may also be obtained where
the distance to a U.S. Attorney or a magistrate is considerable so that
excessive travel time would not be wasted if entry were denied.
At present, the seeking of such a warrant prior to an initial inspection
should be an exceptional circumstance, and should be cleared through
Headquarters.  If refusals to allow entry without a warrant increase, such
warrants may be sought more frequently. (For specific instructions on
how to obtain a warrant, see Part D.)

       (2) Administrative Inspections v. Criminal Investigations

       It is particularly important for both inspectors and attorneys to
be aware of the extent to which evidence sought in a civil inspection can
be used in a criminal matter, and to know when it is necessary to secure a
criminal rather than a civil search warrant.  There are three basic rules
to remember in this regard:  (1) If the purpose of the inspection is to
discover and correct, through civil procedures, nonconpliance with regulatory
requirements, an administrative inspection (civil) warrant may be used;
(2) if the inspection is in fact intended, in whole or in part, to gather
evidence for a possible criminal prosecution, a criminal search warrant
must be obtained under Rule 41 of the Federal Rules of Criminal Procedure;
and (3) evidence obtained during a valid civil inspection is generally
admissible in criminal proceedings.  These principles arise from the recent
Supreme Court cases of Marshall v. Barlow's, Inc., supra; Michigan v. Tyler,
	U.S.	, 98 S.Ct. 1942 (1978); and U.S. v. LaSalle National Bank,
	_U.S.	r, 57 L. Ed. 2d 221 (1978).  It is not completely clear whether
a combined investigation for civil and criminal violations may be properly
conducted under a civil or "administrative" warrant, but we believe that

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                                 - 3 -
a civil warrant can properly be used unless the intention is clearly to
conduct a criminal investigation.

       (3) The Use of Contractors to Conduct Inspections

       Several programs utilize private contractors to aid in the conduct
of inspections.  Since, for the purpose of inspections, these contractors
are agents of the Federal government, the restrictions of the Barlow's
decision also apply to them.  If contractors are to be conducting
inspections without the presence of actual EPA inspectors, these con-
tractors should be given training in how to conduct themselves when
entry is refused.  With respect to obtaining or executing a warrant,
an EPA inspector should always participate in the process, even if
he was not at the inspection where entry was refused.

       (4) Inspections Conducted by State Personnel

       The Barlow's^ holding applies to inspections conducted by State
personnel and to joint Federal/State inspections. Because some EPA
programs are largely implemented through the States, it is essential
that the Regions assure that State-conducted inspections are conducted
in compliance with the Barlow^s decision, and encourage the State inspec-
tors to consult with their legal advisors when there is a refusal to
allow entry for inspection purposes.  State personnel should be encouraged
to contact the EPA Regional Enforcement Office when any questions con-
cerning compliance with Barlow's arise.

       With regard to specific procedures for States to follow, the
important points to remember are;  (1) The State should not seek for-
cible entry without a warrant or penalize an owner for insisting upon
a warrant, and (2) the State legal system should provide a mechanism for
issuance of civil administrative inspection warrants.  If a State is
enforcing an EPA program through a State statute, the warrant process
should be conducted through the State judicial system.  Where a State
inspector is acting as a contractor to the Agency, any refusal to allow
entry should be handled as would a refusal to an Agency inspector as
described in section II.B.3.  Where a State inspector is acting as a
State employee with both Federal and State credentials, he should utilize
State procredures unless the Federal warrant procedures are more advantageous,
in which case, the warrant should be sought under the general procedures
described below.  The Regions Should also assure that all States which
enforce EPA programs report any denials of entry to the appropriate
Headquarters Enforcement Attorney for the reasons discussed in section
II.B.4.

    B. Entry

       (1) Consensual Entry

       One of the assumptions underlying the Court's decision is that
most inspections will be consensual and that the administrative inspec-
tion framework will thus not be severely disrupted.  Consequently, inspec-

-------
                                - 4 -
tions will normally continue as before the Barlow's decision was issued.
This means that the inspector will not normally secure a warrant before
undertaking an inspection but, in an attempt to gain admittance, will
present his credentials and issue a notice of inspection where required.
The establishment owner may complain about allowing an inspector to enter
or otherwise express his displeasure with EPA or the Federal government.
However, as long as he allows the inspector to enter, the entry is voluntary
and consensual unless the inspector is expressly told to leave the premises.
On the other hand, if the inspector has gained entry in a coercive manner
(either in a verbal or physical sense), the entry would not be consensual.

   Consent must be given by the owner of the premises or the person in
charge of the premises at the time of the inspection.  In the absence
of the owner, the inspector should make a good faith effort to determine
who is in charge of the establishment and present his credentials to
that person.  Consent is generally needed only to inspect the non-public
portions of an establishment - i.e., any evidence that an inspector obtains
while in an area open to the public is admissible in an enforcement
proceeding.

       (2) Withdrawal of Consent

       The owner may withdraw his consent to the inspection at any time.
The inspection is valid to the extent to which it has progressed before
consent was withdc3wn.  Thus, observations by the inspector, including
samples and photographs obtained before consent was withdrawn, would be
admissible in any subsequent enforcement action.  Withdrawal of consent
is tantamount to a refusal to allow entry and should be treated as
discussed in section II.B.3. below, unless the inspection had progressed
far enough to accomplish its purposes.

       (3) When Entry is Refused

       Barlow's clearly establishes that the owner does have the right
to asX for a warrant under normal circumstances.  Therefore, refusal
to allow entry for inspectional purposes will not lead to civil or criminal
penalties if the refusal is based on the inspector's lack of a warrant
and one of the exemptions discussed in Part C does not apply.  If the
owner were to allow the inspector to enter his establishment only in
response to a threat of enforcement liability, it is quite possible that
any evidence obtained in such an inspection would be inadmissible.  An
inspector may, however, inform the owner who refuses entry that he intends
to seek a warrant to compel the inspection.  In any event, when entry is
1
 FIFRA inspections are arguably not subject to this aspect of Barlow's
See discussion, p. 5 and 6.

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                                  - 5 -
refused, the inspector should leave the practises immediately and telephone
the designated Regional Enforcement Attorney as soon as possible for
further instructions.  The Regional Enforcement Attorney should contact
the U.S. Attorney's Office for the district in which the establishment
desired to be inspected is located and explain to the appropriate Assistant
United States Attorney the need for a warrant to conduct the particular
inspection,  The Regional Attorney should arrange for the United States
Attorney to meet with the inspector as soon as possible. The inspector
should bring a copy of the appropriate draft warrant and affidavits.
Samples are provided in the appendix to this document.

       (4) Headquarters Notification

       It is essential that the Regions keep Headquarters informed of
all refusals to allow entry.  The Regional Attorney should inform the
appropriate Headquarters Enforcement Attorney of any refusals to enter
and should send a copy of all papers filed to Headquarters.  It is
necessary for Headquarters to monitor refusals and Regional success in
obtaining warrants to evaluate the need for improved procedures and to
assess the impact of Barlow*s on our compliance monitoring  programs.

    C.  Areas Where a Right of Warrantless Entry Still Exists

       1.  Emergency Situations.

       In an emergency, where there is no time to get a warrant, a warrant-
less inspection is permissible.  In Camara v. Municipal"Court, 387 U.S. 523
(1967), the Supreme Court states that "nothing we say tcoayTs intended
to foreclose pronpt inspections, even without a warrant, that the law has
traditionally upheld in emergency situations". Nothing stated in Barlow's
indicates any intention by the court to retreat from this position.  The
Regions will always have to exercise considerable judgment concerning
whether to secure a warrant when dealing with an emergency situation.
However, if entry is refused during an emergency, the Agency would need
the assistance of the U.S. Marshal to gain entry, and a warrant could
probably be obtained during the time necessary to secure that Marshal's
assistance.

     An emergency situation would include potential imminent hazard
situations, as well as, situations where there is potential for destruction
of evidence or where evidence of a suspected violation may disappear during
the time that a warrant is being obtained.

       (2) FIFRA Inspections.

       There are some grounds for interpreting Barlow's as not being
applicable to FIFRA inspections.  The Barlow's restrictions do not apply
to areas that have been subject to a long standing and pervasive history

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                              - 6 -
of government regulation.  An Agency administrative law judge held recently
that even after the Barlow's decision/ refusal to allow a warrantless
inspection of a FIFKA regulated establishment properly subjected the
owner to civil penalty.  N. Jonas & Co., Inc., I.F. & R Docket No. III-121C
(July 27, 1978).  For the present, however, FIFRA inspections should be
conducted under the same requirements applicable to other enforcement
programs*

       (3) "Open Fields" and "In Plain View" situations.

       Observation by inspectors of things that are in plain view, (.!•£•,
of things that a member of the public could be in a position to observe) does
not require a warrant.  Thus, an inspector's observations from the public
area of a plant or even from certain private property not closed to
the public are admissible. Observations made even before presentation of
credentials while on private property which is not normally closed to the
public are admissible.

       D.  Securing a Warrant

       There are several general rules for securing warrants.  Three
documents have to be drafted:  (a) an application for a warrant, (b) an
accompanying affidavit, and (c) the warrant itself.  Each document should be
captioned with the District Court of jurisdiction, the title of the action,
and the title of the particular document.

       The application for a warrant should generally identify the statutes
and regulations under which the Agency is seeking the warrant, and should
clearly identify the site or establishment desired to be inspected
(including, if possible, the owner and/or operator of the site).
The application can be a one or two page document if all of the factual
background for seeking the warrant is stated in the affidavit, and the
application so states.  The application should be signed by the U.S.
Attorney or by his Assistant U.S. Attorney.

       The affidavits in support of the warrant application are crucial
documents.  Each affidavit should consist of consecutively numbered para-
graphs, which describe all of the facts that support warrant issuance.  If
the warrant is sought in the absence of probable cause, it should recite
or incorporate the neutral administrative scheme which is the basis for
inspecting the particular establishment.  Each-affidavit should be signed
by someone with personal knowlege of all the facts stated.  In cases where
entry has been denied, this person would most likely be the inspector
who was denied entry.  Note that an affidavit is a sworn statement that
must either by notarized or personally sworn to before the magistrate.

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                                  - 7 -
     The warrant is a direction to an appropriate official (an EPA
inspector, U.S. Marshal or other Federal officer) to enter a
specifically described location and perform specifically described
inspection functions.  Since the inspection is limited by the terms of
the warrant, it is important to specify to the broadest extent possible
the areas that are intended to be inspected, any records to be inspec-
ted, any samples to be taken, any articles to be seized, etc.  While
a broad warrant may be permissible in civil administrative inspections,
a vague or overly broad warrant will probably not be signed by the
magistrate and may prove susceptible to constitutional challenge
The draft warrant should be ready for the magistrate's signature at the
time of submission via a motion to quash and suppress evidence in
Federal District court.  Once the magistrate signs the draft warrant, it
is an enforceable document.  Either following the magistrate's signature
or on a separate page, the draft warrant should contain a "return of
serv-ice" or "certificate of service".  This portion of the warrant should
indicate upon whom the warrant was personally served and should be signed
and dated by the inspector.  As they are developed, more specific warrant-
issuance documents will be drafted and submitted to the Regions.

       E.  Standards or Bases for the Issuance of Administrative Warrants.

       The Barlow's decision establishes three standards or bases for the
issuance of administrative warrants.  Accordingly, warrants may be obtained
upon a showing:  1) of traditional criminal probable cause, 2) of civil
probable cause, or 3) that the establishment was selected for inspection
pursuant to a neutral administrative inspection scheme.

       1.  Civil specific probable cause warrant.

       Where there is some specific probable cause for issuance of a warrant,
such as an employee complaint or competitor's tip, the inspector should be
prepared to describe to the U.S. Attorney in detail the basis for this
probable cause.

       The basis for probable cause will be stated in the affidavit in
support of the warrant.  This warrant should be used when the suspected
violation is one that would result in a civil penalty or other civil
action.

       2.  Civil probable cause based on a neutral administrative
           inspection schemed

       Where there is no specific reason to think that a violation has been
committed, a warrant may still be issued if the Agency can show that the
establishment is being inspected pursuant to a neutral administrative
scheme.  As the Supreme Court stated in Barlow's;

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                               - 8 -
     "Probable cause in the criminal law sense is not required. '
     For purposes of an administrative search, such as this,  probable
     cause justifying the issuance of a warrant may be based  not only
     on specific evidence of an existing violation, but also  on a
     showing that "reasonable legislati\« or administrative standards
     for conducting an ... inspection are satisfied with respect
     to a particular [establishment]".  A warrant showing that a speci-
     fic business has been chosen for an OSHA search on the basis of a
     general administrative plan for the enforcement of the act derived
     from neutral sources such as, for example, dispersion of employees
     in various type of industries across a given area, and the desired
     frequency of searches in any of the lesser divisions of  the area,
     would protect an employers Fourth Amendment rights."

Every program enforced by the Agency has such a scheme by which it prioritizes
and schedules its inspections.  For example, a scheme under which every permit
holder in a given program is inspected on an annual basis is  a satisfactory
neutral administrative scheme.  Also, a scheme in vftich one out of every three
known PCB transformer repair shops is inspected on an annual  basis is satis-
factory, as long as, neutral criteria such as random selection are used to
select the individual establishment to be inspected.  Headquarters will prepare
and transmit to the Regions the particular neutral administrative scheme under
which each program's inspections are to be conducted.  Inspections not based
on specific probable cause must be based on neutral administrative schemes for
a warrant to be issued.  Examples of two neutral administrative schemes are
provided in the appendix.  (Attachments II and III)

     The Assistant U.S. Attorney will request the inspector to prepare and
sign an affidavit that states the facts as he knows them.  The statement
should include the sequence of events culminating in the refusal to allow
entry and a recitation of either the specific probable cause or the
neutral administrative scheme which led to the particular establishment's
selection for inspection.  Die Assistant U.S. Attorney will then present
a request for an inspection warrant, a suggested warrant, and the inspector's
affidavit to a magistrate or Federal district court judge.2

       3.  Criminal Warrants.

       Where the purpose of the inspection is to gather evidence for a
criminal prosecution, the inspector and the Regional Attorney should request
that the U.S. Attorney seek a criminal warrant under Rule 41 of the Federal
Rules of Criminal Procedure.  This requires a specific showing of probable
cause to believe that evidence of a crime will be discovered.  Agency policy
on the seeking of criminal warrants has not been affected by Barlow* s.  The
2
  The Barlow's decision states that imposing the warrant requirement
on OSHA would not invalidate warrantless search provisions in other
regulatory statutes since many such statutes already "envision resort

-------
                                    -9-
distinction betveen administrative inspections and criminal varran't
situations is discussed in Section II.A.2.

      F. Inspecting with a Warrant

       Once the warrant has been issued by the magistrate or judge, the
inspector may proceed to the establishment to commence or continue the
inspection.  Where there is a high probability that entry will be refused
even with a werrant or vfcere there are threats of violence, the inspector
should be accompanied by a U.S. Marshal when he goes to serve the warrant
on the recalcitrant owner.  The inspector should never hajnself attempt
to make any forceful entry of the establishment.  If the owner refuses
entry to an inspector holding a warrant but not accompanied by a U.S.
Marshal, the inspector should leave the establishment and infom the
Assistant U.S. Attorney and the designated Regional Attorney.  They will
take appropriate action such as seeking a citation for contempt.  Where
the inspector is accompanied by a U.S. Marshal, the Marshal is principally
charged with executing the warrant.  Thus, if a refusal or threat to
refuse occurs, the inspector should abide by the U.S. Marshal's decision
whether it is to leave, to seek forcible entry, or otherwise.

       The inspector should conduct the inspection strictly in accordance
with the warrant.  If sampling is authorized, the inspector must be sure
to carefully follow all procedures, including the presentation of receipts
for all samples taken.  If records or other property are authorized to be "
taken, the inspector must receipt the property taken and maintain an
inventory of anything taken fron the premises.  This inventory will be
examined by the magistrate to assure that the warrant's authority has
not been exceeded.
2 continued from page 8.

to Federal court enforcement when entry is refused".  There is thus
some question as to vnether the existence of a non-warrant Federal
court enforcement mechanism in a statute requires the use of that
mechanism rather than warrant issuance.  We believe that the Barlow's
decision gives the agency the choice of whether to proceed through warrant
issuance or through an application for an injunction, since the decision
is largely based on the fact that a warrant procedure imposes virtually
no burden on the inspecting agency.  In addition, an agency could attempt
to secure a warrant prior to inspection on an ex parte basis, something
not available under normal injunction proceedings.  Several of the acts
enforced by EPA have provisions allowing the Administrator to seek
injunctive relief to assure compliance with the various parts of a
particular statute.  There may be instances where it would be more appro-
priate to seek injunctive relief to gain entry to a facility than to
attempt to secure a warrant for inspection, although at this point we
cannot think of any.  However, since the warrant process will be far
more expeditious than the seeking of an injunction, any decision to
seek such an injunction for inspection purposes should be cleared through
appropriate Headquarters staff.

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                               - 10 -
        G.  Returning the Warrant.

        After the inspection has been completed, the warrant must be returned
to the magistrate.  Whoever executes the warrant, (i.e.,  whoever performs
the inspection), must sign the return of service form indicating to whom
the warrant was served and the date of service.  He should then return
the executed warrant to the U.S. Attorney who will formally return it to
the issuing magistrate or judge.  If anything has been physically taken
from the premises, such as records or samples, an inventory of such items
must be submitted to the court, and the inspector must be present to certify
that the inventory is accurate and complete.

III.   Conclusion

       Except for requiring the Agency to formalize its neutral inspection
schemes, and for generally ending the Agency's authority for initiating
civil and/or criminal actions for refusal to allow warrantless inspections,
Barlow's should not interfere with EPA enforcement inspections.

       Where there is doubt as to how to proceed in any entry case,
do not hesitate to call the respective Headquarters program contact for
assistance.
                             Marvin B. Burning

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                              APPENDIX
The Appendix contains three attachments.

     Attachment I is a warrant application, affidavit and warrant to
conduct an inspection, where the Agency has specific probable cause to
believe that a civil violation of an EPA regulation or Act has occured.
In particular, care should be taken in spelling out the specific facts
that give rise to probable cause.  Note also, that the scope of the
warrant is carefully articulated.

     Attachment II is a warrant application, affidavit and warrant to
conduct an inspection in which the establishment to be inspected has
been selected under a neutral administrative inspection scheme.  Note
the extraordinary detail of the administrative scheme describe in
paragraphs 8-20 of the affidavit.  Such detail should not be necessary
for most EPA neutral administrative inspection schemes.  Note also
the executed inventory and return of service forms attached to
Attachment II.

     Attachment III contains a neutral administrative scheme for
CFC inspections.  In implementing such a scheme, the Regions must still
utilize neutral criteria in selecting the individual establishment to
be inspected.

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                 UNITED STATES DISTRICT COURT
                 MIDDLE DISTRICT OK LOUISIANA
 IN TJtE MATTER OF              :
 CLEAN LAND AIR AND WATER,      :     NO-,
 CORPORATION.  D/3/A CLAW:
 ROLLINS ENVIRONMENTAL SKRVICSS:     APPLICATION FOR WARRANT TO
 OF LOUISIANA  INCORPORATED:     :     n~ER,  INSPECT.  PHOTOGRAPH.
 ENVIRONMENTAL PURIFICATION     :     SAMPLE,  COLLECT INFOF.MATIO;,'.
 ADVANCEMENT IHCORPORATCD?      :     INSPECT AND COPY RECORDS
 EPA,  INC.: IN I3ERVILLE       :
 PARISH, LOUISIANA.             t

           TO  THE UNITED STATES MAGISTRATE,  by Che United
 States of America, Environmental Protection Agency, through
 Janes Stanley Leaelle,  Assistant United States Attorney, for
 the Middle District of Louisiana, hereby applies  for A
 warrant pursuant to section 308  of the  Federal Water Pollution
 Control Act,  33 U.S.C.  1318.  and the Resource Conservation
 and Recovery  Act of 1976, 42 U.S.C. 6927,  for the purpose of
 conducting an inspection as follows:
           To  enter to,  upon,  or  through the premises of a
 waste disposal operation known by various  names including
        •<
' the CLAW facility, vhich consists of three sites, to wit:
               »
 an injection  veil site, a field  office  and storage tanks,
 and waste pits and landfill site located in Iberville Parish,
    *
 Louisiana in  or near the Bayou Sorrells coocunity.   The
 facility can  be reached for disposal purposes by  truck or
 barge.  The ownership and operation of  the CLAW facility
 waste disposal operation has been known, by several different
 names, to wit:  Clean Land Air Water Corporation  (CLAW);
 EPA,  Incorporated; Environmental Purification Advancement;
 Environmental Purification  Abatement (EPA. Inc.)  and Rollins
 Environmental Services of Louisiana. .A company letterhead
 using the names of CLAW and EPA, Inc. lists an address of
 Route 2, Box 380B, Plaquemine, Louisiana 70764.'  It is
 reported in the newspapers  and elsewhere,  that on July 28,
 1978 - three days after the death of the truck driver on the
                                                    *
 CLAW facility - that the injection well on the CLAW facility
 vas sold to the Rollins Environmental Services of Louisiana.
 Unsubstantiated reports say that CLAW no longer has any

-------
 of EPA, Inc. and the injection veil under the ownership of
 Rollins.  CLAW and EPA, Inc. are reported to be different
 company and/or corporate names for the •same people.  Despite
 these possible ownership changes, the CLAW facility apparently
 continues to be operated as a single unit.  Further, it is
 reported that CLAW or Rollins is under .a federal court order
 Co honor its contract with a client co accept waste.  For
 purposes of this application, affidavit and warrant, the
 three sites and all operations will be referred co as CLAW.
           The field office and storage .tanks are in or on
 the edge of Bayou Sorrells; the injection well site is about
 1.6 miles northwest of Bayou Sorrells oa che road; Che waste
  •    * t
 open pies-landfills are located approximately 7.7 miles
 •northwest "of Bayou Sorrels on che levee road.  The address
 of Che CLAW facility is Clean Land Air Water Corporation EPA
' Incorporated, Route 2. Box 380 B, Plaquesine, Louisiana.
 These CLAW facilities are known Co EPA inspectors and well
 known to local people.                *
        .  The CLAW facility is an establishment subject Co
 Che requirements and prohibitions of che Federal Water Pol-
 lution Control Act, including but not limited co seccions
 301, 308 and 311, and seccions 3007 and 7003 of che Resource
 •Conservation and Recovery Act of 1976 (42 U.S.C. 6901 et •
           Oa Friday, August 4, 1978, Edward McHaa, an
 employee of che U.S. Environnenc Protection Agency, requested
 permission to enter and inspect Che said preaises.  Despite
         •                                                     •
 ruch request, employees of said facility refused Co grant
 access  to said preaises to Mr. McHaa, & duly authorized
 Inspector of Che Environneneal Protection Agency. •
           The determination eo inspect said premises was
 eased on the following:
                                                       •
           The sheriff's office of Iberville Parish requested
 EPA's assistance and reported a death at said premises.

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Local unrest and fear of che facility was reported eo che
Enforcement Division of Region VI, Dallas,-Texas on Tuesday,
August 1. 1979 and £?A was requested to inspect the facility
vhich is a disposal site for chesical wastes and numerous
oil wastes of a hazardous and toxic nature.
                             •
          Much local unrest, and agitation and coeplaines
have been reported on television and in newspapers concerning
Che operation of the CLAW facility as veil as the untimely
death of « 19 year old truck driver at said facility while
he was discharging waste into an open pic at the facility.
The death was possibly caused by his inhalation of toxic
fumes caused by a reaction of nixing incoepatible toxic
wastes in the open pit.  Allegedly two eye witnesses to the
  *
death of the driver reported the presence of choking fumes
in the area when they opened the doors to their truck eo
assist the driver who died.  They also reported that his
truck was parked at the edge of che open pit truck ramp,
with doors open at the time of his dea'th.  Subsequent
laboratory tests of waste taken froa the pits have shown
waste materials present in the pit, which, when mixed with
the speae caustic being discharged from the driver's truck
could have caused the death.  Final autopsy reports arc
ccill pending.  It is reported and alleged that CLAW facility
officials directed the driver to take and discharge his
wastes at che truck ramp in che open pic, rather than in che
injection well.  Discharging toxic waste into an open pie,
at che edge of * pie* is not a safe, desirable, or acceptable
•practice since toxic chemical reactions are very probable
and can result in the death of anyone nearby.
          Edward.HcHam made a preliminary inspection
la which he obtained two pic samples and observed evidence
of oil, hazardous wastes, waste spillage and a "sloppy"
operation which appears to be dangerous to the environment
                              •3-

-------
 as veil as hazardous to che healch and welfare of citizens.
 He further observed high water markings on the adjacent
 trees ac the pit site and a lack of levees between the sites
                                       •     "•
 and the Grand River and other waterways.  In addition, there
 tcay be hazardous wastes and conditions which cay pose a
 tubsrantial present, or potential hazard to human health
 or the environment when improperly treated, stored, trans-
 ported, or disposed of, or otherwise managed.
           •The inspection will be commenced in daytime
                   •         .                  •
 vithin regular business hours and will begin as soon as
 practicable after issuance of this warrant and will be
 completed with reasonable promptness.
           The inspection will be conducted by the
         ,                                      *
 United States Environmental Protection Agency (EPA) inspec-
 tors, vho will be accompanied by the United States Marshal
 to ensure entry so that the EPA inspectors may perform an
 inspection of the premises, inspect and copy records, take
 photographs, gather information and evidence and collect
 ' samples in accord with 33 USC 1313 and 42 USC 6927.
f          A return will be made to the .Court upon completion
           «
 of the inspection.       '                  •
           VEE3EFORE. it is respectfully requested that a
 warrant to enter and inspect the CLAW facility be issued.
                                   . Respectfully submitted,
                                    DONALD L. BECOER
                                    UNITED STATES ATTORNEY '
                                        Xrrjiu. N^» //y,_i/»,   (>
                                        ,S STANLEY LtTlELLi
                                    --,— _
                                    Assistant U.S. Attorney

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                            AFFIDAVIT   .
  STATE OF LOUISZAKA
                                            •
  PARISH OF EAST BATON ROUC2
                                        •
            I, Ecvard McKam, being duly sworn,  hereby depose
  and say:
            1.   I am a duly authorized employee of Che United
  States Environmental Protection Agency,  and my title is
  Chemical Engineer, Surveillance and Analysis  Division,
  Region VI, which includes the State of Louisiana.  In my
  capacity, I am responsible for inspecting facilities subject
  to various federal environmental statutes as  directed by my
  supervisors.
            2.   On Tuesday, August 1. 1973 from about 7:65
.  p.m. Co 8:45 p.m., I made a preliminary inspection of the
  CLAW facility and took two samples at the open pics.  On
  Wednesday, August 2. 1978, I took a few photographs of Che
  facilities from around 3:30 p.m. until 5:30 p.m.   On Thursday,.
  August 3, 1978 aceonpanied by another £?A employee, I visited
                                        •
  Che facility and area from about 11:30 a.m. Co 2:00 p.m. and
  also took a few additional photographs.   These brief visits
  Co Che site have only involved facility employees a few
  minutes each tise in order to obtain passes from Che field
  office and to open gates at various guard houses.
            3.   On Friday, August 4, 1978, a local depucy
  sheriff, scace and local officials and I were refused admit-
                                        •
  Cance Co che CLAW facility.  Also, CLAW officials  were no
                                        •'
  longer ac Che field house or available elsewhere co issue
  passes Co enter.  My previous sampling and inspection was
  HOC sufficient for laboratory purposes* and needs  Co be
  resumed.
            4.   Information I have gathered in Che local
  community, in newspapers, on television, from laboratory

-------
tests of the samples, frors the Iberville Sheriff's Office.
and at the CLAW facility strongly suggest and support the
need to enter and inspect the facilities for possible Section
301, 311 and other violations of the Federal Water Pollution
Control Act.  Further, it is possible that there are hazardous
vastes and conditions on the premises as defined in Section
     •                      s           •
1004(5) of the Resource Conservation and Recovery Act of 1976.
(42 USC 6903) (5).which constitute an ixcainent hazard under
section 7003 of the Resource Conservation and Recovery Act
of 1976 (42 USC 6973).  These observations are:
               a.   Obvious spillage of waste material on
the grounds of the CLAW facility subject to entering waterways.
               b.   Contaminated landfills with obviously
exposed and damaged barrels with their contents emptied or
nearly empty.
                             •
               e.   Drainage from landfills into a "fishing"
lake and other adjacent areas leading to various waterways.
               d.   Open pits containing oil wastes and
hazardous, toxic cheaical wastes with the appearance of
overflow wastes on the adjacent grounds as well as high
water marks on trees next to the open pits equal to or
higher than the pits.
               «.   The lack of levees becveen the facility
grounds and drainage areas to the Grand River, "fishing
lake", bayous and barrow ditches.          *•  '
               f.'   Copies of a few facility log records and
other documents which were previously copied by the local
Sheriff's office.  These records indicate the receipt and con-
                                      •
tent of oil and hazardous chemical wastes accepted at the
facility.
               g. "Poor maintenance and sloppy Housekeeping"
practices at the facility which leads a reasonable person to
recognize the likelihood of these prohibited pollutants
                          -2-

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                    UNITED STATES DISTRICT  COURT
                    KIDDLE DISTRICT OF LOUISIANA
IN THE MATTES OF
CLEAN LAND AIR AND WATER,
CORPORATION, d/b/a CLAW;
ETC.,. £T AX..
SO.  ?-
WARRANT OF ENTRV, INSPECTION
AND MONITORING PURSUANT TO
33 U.S.C.S131B ar.d 42 U.S.C.S6927
TOs  THE UNITED STATES OF AMERICA, UNITED STATES ENVIRONMENTAL
     PROTECTION AGENCY, THROUGH  ITS DULY DESIGNATED REPRESENTATIVE
   .  OR REPRESENTATIVES, TEE UNITED STATES MARSHAL OR ANY OTHER
 •   . FEDERAL OFFICES
          An -application having been made by the United States of
America, United States Environmental Protection Agency, for a
warrant of entry, inspection and monitoring pursuant to 33 U.S.C.51318
and 42 O.S.C.S6927, as part of an inspection program designed to
assure compliance with the Federal Hater 'Pollution Control Act
 (commonly referred to as the Clean Water Act}, 33 U.S.C.51251, et
          •
scq., and the Resource and Recovery Act of 1976  (42 U.S.C.SSSQl.^ «t —
seq.),.and an"affidavit having been made before me by Edward MeHam,
a duly authorized employee of the United States Environmental
Protection Agency, that he'has reason to believe that on the premises
-hereinafter described there exist a danger to the public's health,
                                            *
welfare and safety and to the property, rivers and environment of
•the United States, and that in order to determine whether the
Federal Water Pollution Control Act  (commonly referred to as the
dean Water Act), 33 U.S.C.$1251, et »eq., and the Resource and
Recovery Act of 1976  (42 U.S.C.$6901, et seq.), and the rules,
regulations and orders issued pursuant to the Acts have been or
                                                   *
are being violated, an entry on, and inspection and monitoring
     .                               *
of tho said described property is required and necessary;

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          And, the Court being satisfied that there has been a

sufficient showing that reasonable legislative or administrative
                                         •
standards for conducting an inspection and investigation have been

satisfied with respect to the said described property and -that

probable cause exist to issue a warrant for the entry, inspection,

investigation and monitoring of the said described premises*

          X? IS KSP.S3Y ORDERED-ASO COS-IAN DEO that the United States

of America, United States Environmental Protection Agency, through
                                                •
its duly designated representative or representatives, the Dnited

States Marshal, or any other federal officer are hereby entitled to

and shall be authorized and permitted to have entry upon the

following described property which is located in the Middle District

of Louisiana:

             •Those premises known as the Claw Corporation
             waste disposal facility in Iberville Parish,
             Louisiana, also known as EPA, Inc., Clear Land
             Air Water Corporation, Environmental Purification  *
             Advancement, Environmental Purification Abatement
             and possibly as the Rollins Environmental Services
             of Louisiana, or which are owned or operated by
             any other person or company,- corporation or part-
           •  nership, which premises and property are more
             particularly and further described as follows:

             "From the intersection of La. Highway 75 and
             ^a. Highway 3066, proceed South for approximately
             7 miles; turn right and travel across the Bayer-
             Sorrel-Pontoon Bridge, a distance of approximately
             0.2 miles; turn right, proceed northwest on Rout*
             2, the Lower-Levee Scad, for approximately 1.6
             niles at which point the pavement ends; at this
             point turn right, travel approximately 0.1 miles
             to the entrance of the injection well, which is
             believed to be owned by Rollins Environmental
             Services of Louisiana, Incorporated, all as is
             shown on the attached photos identified as
             Government Exhibits 1 and 2.'
                                                     •

             •Prom the Rollins Environmental Services of
            ° Louisiana, Incorporated office, proceed South on
             the shell/gravel road for approximately 1.4 miles
             until the road deadends.  This is the location of
             the field office of Clean Land Air and Water
              (CLAW), and storage tanks which are believed to be
             owned by Rollins Environmental Services of Louisiana
             Incorporated, all as is shown on the attached photos
             identified as Government Exhibits 3, 4, and 5.

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             •rrora the field office of CLAW, return to the
             site of the intersection at the paved lower levee
             road and the road leading to the dee? well injection
             «ite (Rollins Environmental).  Proceed nor.thwest
             on the unsaved shell/gravel lower levee road
             approximately 6.1 miles to the entrance road and
             bridge leading to the gate guard house and gate
             of the EPA, Inc. waste disposal pits.  This sase
             entrance road is 7.7 miles"northwest along the
             lower levee road from the intersection of the lover
             levee road and Bayou Scrrel Pontoon Bridge Road.

          XT ZS FUaiKSR OSDSaSD that the entry, inspection,

investigation and monitoring authorized herein shall be conducted
                                                •
during regular working hours or at other reasonable tines, within

reasonable linits and in a reasonable manner fxoa 6:00 a.m. to

10:00 p.m.

          IT ZS FUKTESS ORDESEO that the warrant issued herein shall

be for the purpose of conducting an entry, inspection, investigation

and monitoring pursuant to 33 U.S.C.5131B and 42 U.S.C.$6.927

consisting of the following:

            (1)  entry to, open or through the above described
                 precises, including all buildings, structures,
                 equipment, cachines, devices, materials and
                 sites to inspect, sample, photograph, monitor
        . •       or investigate the said premises;

            (2)-  access to, seizure of and copying of all records
      .  *    ••   pertaining to or related to the operation of
                 the facility, equipment, waste materials
                 which are accepted and stored on the premises
                 and records which are required to be maintained
                 under 33 U.S.C.51318(a)(A), and 42 O.S.C.S6901,
                 et seq., including any rules and regulations
                 and orders promulgated thereto;
                                           •
            (3)  inspection, including photographing, of any
                 monitoring equipment or methods required by
                 33 U.S.C.S1318U) (A), and 42 O.S.C.S6927;

            (4)  inspection, including photographing,of any
                 equipment, processes or methods used in sampling,
                 monitoring or in waste characterization;

            (5)  inspection, including photographing, of any
                 equipment or methods used to dispose of or store
                 waste substances;

            (6)  sample and seize any pollutants, effluents,
                 .runoff, soil, or other materials or substances
                 which may reasonably be expected to pollute
                 the waters of the United States under various
                 conditions or threaten the public health, safety
                 or welfare of the people of the United States;

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             (7)   seize.  Inspect,  sample,  and phctgraph any
                  evidence which constitutes  or  relates to or
                  is  part of  a violation of the  Federal Water
                  Pollution Control  Act (cotmonly referred to
                  *s  the  Clean Water Act,  33  U.S.C.51251,  et
                  ceq., and the Resource and  Recovery Act  of 1976
                 .(42 U.S.C.$6901, et seq.J;             .  -
             (8)  . take such photographs of -the above authorized
                  procedures  as nay  be required  or necessary.
           2? IS  FURTHER  ORDERED that A copy  of  this warrant shall
 be left at the premises  at the tine of the inspection.
           IT IS  FURTHER  ORDERED that if any  property is seized,
 the officer conducting the search and seizure shall leave a receipt
 for the property taJcen and prepare  a written inventory of the  property
 seised and return this warrant with the written inventory before
 «e within 10 days from the date of  thia warrant.
           IT IS  FURTHER  ORDERED that the  warrant authorized herein
 shall be valid  for  a period of 10  days from the date of  this  warrant.
           IT IS  FURTHER  ORDERED that the  United States Marshal Is
 hereby authorized and directed to assist  tha representatives of the
 United States Environmental  Protection Agency in such manner as
 say be reasonably necessary  and required  to  execute this  warrant
.and the provisions contained herein, including  but not limited to
.gaining entry upon tha premises,  the inspection and monitoring
 thereof, the seizure and sampling of materials, docunents or equipment,
 And the photographing of  the  premises, and the materials or equipment
 thereon.                                 *              '               •
           BATED  this     /<>   day of   Cuu^^^J-	•   ,  1978.
                                     CNIXED STATED MAGISTRATE

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              IN THE UNITED STATES DISTRICT COURT
              FOR THE EASTERN DISTRICT OF MICHIGAN
                       SOUTHERN DIVISION
                                       APPLICATION FOR
                                       ADMINISTRATIVE WARRANTS
IN TEE MATTER OF:  '

GENERAL MOTORS CORPORATION
GENERAL MOTORS ASSEMBLY DIVISION
KILLCW RUN AIRPORT
YPSILANTI, MICHIGAN  48197
         AND
VEHICLE EMISSION LABORATORY
GENERAL MOTORS PROVING GROUND
MILFORD, MICHIGAN  48042
     NOW COMES the Adainistrator for the Environmental

Protection Agency (EPA), by and through the United States
                                            •
Attorney, and applies for administrative warrants to

enter, to observe a Selective Enforcement Audit (SEA) test

on a configuration of aotor vehicles manufactured by the

General Motors Corporation (CM) as specified in a SEA test

order issued on July 28, 1978, by the Assistant Administrator

for Enforcement of EPA, and to inspect GM's records, files,

papers, processes, controls, and facilities which are

involved in and associated with the manufacture and testing

of said configuration pursuant.to said test order at the*

premises of the GM Willow Run vehicle assembly plant, Ypsilanti,',
         •
Michigan, and the GM vehicle emission laboratory at Milford,

Michigan, in accordance with Sections 206(b) and (c), 208(a)

and 301(a)*of the Clean Air Act, 42 U.S.C. S7S25(b) and (c),
                                         •
7542(a) and 7601(aJ, and regulations promulgated thereunder.

In support of this application, the Administrator respectfully
                         •
submits an affidavit and proposed warrants.
                                 James K. Robinson
                                 United States Attorney
                                    Assistant United States Attorney

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              I'.? T:!£ UI.'ITEO  STATES  DISTRICT CO'JRT
              FOR TU£  EASTS::::  DISTRICT  or  MICHIGAN
                         sc'jTHEr.:-:  DIVISION   .
IH TEE KATTSR 0?:
cni'sp-M, MOTO?.S CORSOPJVTXOH
GSKEJwiL KG7GRG ASSEHELY  DIVISION
WILLOW HUN AI3POOT
Y?SILA?:TI, HICHICAI;   48197
AOMIXISTFATIVE WARP-KIT FOR
E::TRY AND u:??EC7io;c uxscs
THE CLEAN AIIl ACT
     TO: MATTHEW A. LOW, Acting Chief,  Manufacturers  Programs
Branch, Mobile Source Enforcement Division, Office  of
Enforcement, United States Environmental Protection Agency
(EPA), and any other duly designated  enforcement  officers or
employees of the EPA:
     .Application having been made,  and  Matthew  Low  having shown
probable 'cause for the issuance of  an administrative  warrant
for  entry; observation of a Selective Enforcement Audit
(SEA) test on the configuration of  motor vehicles manufactured
by General Motors Corporation  (GM)  of engine  family 84082
and  engine code 2, with 4000-pound  inertia weight.  A-3
transmission and 2.56 rear axle ratio,  as specified -in  a SEA	
tast order issued on July 28,  1978, by  the Assistant  Administrator
for  Enforcement of EPA; and inspection  of GM's  records,
                                           •
files, papers, processes, controls  and  facilities which are
involved in and associated with the manufacture and testing
of said configuration pursuant to said  test order at  the
premises of the CM Willow Run-vehicle assembly  plant, Ypsilanti,
Michigan;
     H3E3EF03S, pursuant to the Clean Mr Act as  amended, 42 U.S.C.
57401 «*: 2£3>' and the regulations  thereunder,  you  end  any duly
designated enforcement officers and employees of  the  Environmental
Protection Agency are hereby authorized to enter  the  above-described
premises at reasonable times during normal operating  hours for the

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purpose of conducting an administrative inspection pursuant.
to Sections 206(b) and (c), 20e(a) and 301(a) of the Clean  .
Air Act, 42 'J.S.C. 55752S(b) and {c), 7542{a) s.r.4 7601, and
40 C.F.R. 585.601 et, sec.  You and any duly designated
enforcement officers and employees of E?A are authorized to
observe activities conducted by CM pursuant to the SEA test
order issued on July 28, 1978, concerning the vehicle
configuration specified in said test order to determine
whether CM is complying with 40 C.F.R Part 8S and with the
test order.  The activities that you and the designated
persons are authorized to observe include the following:
vehicle and engine nanufacture, assembly, and storage
procedures; sample test vehicle selection procedures;
and related activities.  You and any designated enforcement
officers and employees are authorized to inspect at reasonable
tines during normal operating hours the records, files,
papers, processes, controls and facilities which are
                                       •
involved in and associated with the above activities and
are maintained, used and generated by CM at that location.
You and any duly designated enforcement officers and ecployees
                            •                  •
are authorized -to copy documents and photograph components,
test vehicles and facilities.
     The duration of this inspection shall be of such reasonable
length as to enable you and the authorized enforcement officers
                      *       •
and employees of EPA satisfactorily to complete such inspection
according to 40 C.F.R. 536.601 et sea.

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                            -3-
     A prompt  return of this warrant shall  be  made to


this court  showing that the warrant has bean executed and that


inspection  has bean completed within such reasonable tine.



DATED:	fU-fc../  3*	    , 1978
                                             t-*/          V!»
                                             * .            •-  »

                              cS^x  <*M-J  //.
                                          TiJ. ST.VJiS KAGIilSATS
                                            ••  :• •-. '.::  * '•• .•

-------
                     RSTSR:? or ssr.vics
     I hereby certify that a copy of  the within  warrant  was
sarved by presenting a copy of same to Jv^ofgM   ire.VQ-Vr  c-4 ^f-f-<
an acent of General Motors Corporation (G::) on   A'Jf'-'S"*"  i   ,
                                                   j
1973, at the GN Willow Run vehicle assembly plant, Ypsilanti, Mich
       s^a 'tf- ~2*^
   (Kane of parson making service)
     iiciil Titla w i th in th e^b'ni t ed
  Scat-zs Environmental Protection Agency)
                             RETURN
     Inspection of the establishment described  in  this
warrant was completed on    rlvqvS'r    V _ ,  1978.
            employee

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   inventory of Property Received Pursuant to Administrative
                       Warranty

GM Assembly Division, V.'illcv; Run Airport, Ypsilanti,
Michigan  4C1S7

1. Vehicle Inspection Secord Form (Chassis No. 2 (yellow)
   JXR:;-7i-S4)
2. Xeroxad copies of lists cf VIM Hu.-bers of Cars making up
   Batches 4, 5, 6, 7, 8, 9 (7 sheets)

     These are the items that EPA has received under
     the authority granted it pursuant to the Administrative
     Warrant for Entry- and Inspection
                                 Bruce Luncy
                                 Enforcement Officer
                                  11:30 aa  8/4/78

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              FOR THE EASTERN DISTRICT OF MICHIGAN
                         SOUTHERN DIVISION
                                       AFFIDAVIT IN SUPPORT OF
                                       APPLICATION FOR WARRANTS
                                       TO ENTER AND INSPECT
                                       PURSUANT TO THE CLEAN AIR
                                       ACT (42 U.S.C. 57401 e£ ser.)
IN THE MATTER OF t
GENERAL MOTOR CORPORATION
GESEF.AL MOTORS ASSEMBLY DIVISION
WILLOW RUN, AIRPORT
YPSILANTI, MICHIGAN  48197
    AND         .  •
VEHICLE EMISSION LABORATORY
GENERAL MOTORS PROVING GROUND
MILFORD, MICHIGAN  48042
     Matthew Low being duly sworn upon his oath,  according to
law, deposes and says:
     1.  I an Acting Chief, Manufacturers Programs Branch,
Mobile Source Enforcement Division, Office of^ Enforcement,
United States Environmental Protection Agency (EPA),
Washington, D.C.  Z an in charge of a program known as the
Selective Enforcement Audit (SEA) program, which  will be
described below.  I report to the Director of the Mobile
Source Enforcement Division, who is under the Deputy Assistant
Administrator for Mobile Source and Noise Enforcement; in
turn, he is under the Assistant Administrator for Enforcement,
who reports to the Administrator of the Environmental
Protection Agency.
         •
     2.  This affidavit is made in support of an application
for Administrative warrants to enter;  observe a Selective
Enforcenerit Audit (SEA) test on the configuration of motor
vehicles manufactured by the General Motors Corporation (CM)
of engine family 840B2 and engine code 2,  with 4000-pound
inertia weight, A-3 transmission and 2.56  rear axle ratio as
specified in a SEA test order issued on July 28, 1978,  by
the Assistant Administrator for Enforcement of EPA; and
inspect GM's records, files, papers, processes, controls,
and facilities which are involved in and associated with

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                          -2-

the manufacture and testing of said configuration pursuant
to said test order at the preaises of the GM Willow Run vehicle
assembly plant at. Ypsilanti, Michigan, and the GM vehicle
eaission laboratory at Hilford, Michigan* pursuant to
Sections 206(b) and (c), 208(a) and 301(a) of the Clean Air
Act, 42 O.S.C. S7525(b) and (c), 7S42(a), and 7601{a), and 40
C.F.R. 586.601 «t «£., 41 Fed. Reg. 31472 (July 23, 1976).
     3.  Title ZZ of the Clean Air Act, 42 O.S.C. S57401,
7520-7551, establishes the Federal program for control of
                                           •
aotor vehicle emissions.  Eaission standards for motor
vehicles are prescribed pursuant to Section 202 of the Act,
42 O.S.C. S7521. Section 206(a), 42 O.S.C. S7S25(a), authorizes
the EPA Administrator to require new motor vehicles to be
tested to determine whether such vehicles conform with the
emission standards and other regulations prescribed pursuant
to Section 202.  Such standards are applicable for the vehicles'
useful life (5 years or 50,000 miles).  The vehicles that are
tested during this certification process are usually pre-productior
prototypes.  Zn the certification process the manufacturer
submits applications for certification, each covering one or more
engine families and setting forth the corresponding technical
descriptions, specifications, and operating parameters for
each family covered.  An engine family is made up of a group    **
of vehicle models, known as "configurations", with the same
basic engine and emission control system specifications.  One
or more prototypes, known as durability vehicles, from each
engine family are subjected to testing over 50,000 miles to
determine deterioration in emissions performance for that
engine family.  Thereafter, prototypes, known as.emission-data
vehicles, of individual configurations within a given family

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                           -3-
                       •
are subjected to a 4000-mile test.  The emission levels of
the emission-data vehicles during their useful life are determined
by applying the "deterioration factor* calculated from the
50,000-mile test results for that engine family to the emission
                      •                  •
data obtained after 4000 ailes of operation.  Zf it is demonstrated
that the prototype vehicles of the various configurations within
an engine family comply with the emission standards over their
useful life and with other regulations, the Administrator issues
to the manufacturer a certificate of conformity for the particular
engine family described in the application.  '
     4.  To determine whether new motor vehicles actually being
manufactured, as distinguished from pre-production prototypes,
neet the regulations, including emission levels, with respect to
which the certificate of conformity was issued. Section 20fi(b),
42 O.S.C. S7525(b), authorizes the Administrator to test and to
require the testing of new production vehicles.  Zn addition, to
enforce Section 206, Section 206(c) provides that officers or
employees designated by the Administrator may enter a manufacturer's
plant to conduct tests of vehicles and to inspect records, files,
papers, processes, controls, and facilities.  Section 208(a), 42
O.S.C. 57542(a), further requires manufactuers to establish and
maintain such records, make such reports,  and provide such
information as the Administrator may reasonably require to enable•
bia to determine whether the manufacturer has acted or is acting
in compliance with Title ZZ of the Act and the regulations
promulgated thereunder and to permit duly-designated EPA officers
or employees to have access to and copy such records.  Section
301(aJ, 42 O.S.C. $7601(a), authorizes  the Administrator to
prescribe such regulations as are necessary to carry out his
functions under the Act and to delegate to any EPA officer or

-------
employee such of his powers and duties under the Act, except the
                                                    n-
making of regulations, as he may deem necessary, of
Based upon the authority of Section 206, 208 and 301, 42 U.S.C,
SS7525, 7542 and 7601, EPA has established a program for spot
assenbly-line testing known as the Selective Enforcement Audit
(SEA) prog ran.  Regulations concerning the SEA program are set
forth at 40 C.F.R. $86.601 et Sjea. , 41 Fed. Reg. 31472 (July 28,
1976).
     5.  Under the SEA program, the manufacturer can be required
to test a representative sample of production vehicles from a
designated motor vehicle configuration to determine whether the
configuration is being manufactured to conform to the applicable
emission requirements.  The SEA regulations prescribe specific
procedures by which SEA testing is to be conducted, including
procedures for vehicle selection, preparation and pre-conditioning,
for dynamometer operation to simulate driving conditions and for
collection of vehicle exhaust gas samples for analysis.  A SEA
is initiated by the issuance of a test order to a manufacturer
requiring that manufacturer to conduct emissions testing and
         •                                                        •
specifying, among other items, the motor vehicle configuration
to be tested, the plant or storage facility from which vehicles
         •
must be selected and the procedures to be employed in selecting
sample vehicles for SEA testing.  Section 206 (b) of the Act,
                                                                 ^
42 U.S.C. S7525(b), authorizes the Administrator to issue a
test order.  Pursuant to Section 301 (a) of the Clean Air Act,
42 U.S.C. $7601(8), the Administrator has delegated the authority
to conduct testing through the issuance of test orders to EPA's
Assistant Administrator for Enforcement along with the further
authority to redelegate this power to the Deputy Assistant
Administrator for Mobile Source and Noise Enforcement, and in

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                               -5-
turn to redelegate to the Director, Mobile Source Enforcement
Division.  EPA Delegation 7-30, Hovember 10, 1977.  Such re-
delegation to the Deputy Assistant Administrator was made on
November 14, 1977. .
                    •
     6.  Under Sections 206(b) and (c), 208(a) and 301(a) of
the Clean Air Act, 42 D.S.C. $S7525(b) and (c), 7542(a) and
7601(a), and 40 C.P.R. $86.601 ejt se£., duly designated EPA
enforcement officers and employees are authorized under the
SEA program to enter the manufacturers' facilities at reasonable
times during normal working hours for the purpose of observing
activity relating to the SEA testing  and inspecting records,
files, papers, processes, controls and facilities to determine if
the manufacturer is acting in compliance with regulations and the
test order.  Ordinarily, the EPA-monitoring includes observation
of vehicle and engine manufacture, assembly and storage procedures
sample test vehicle selection procedures; sample test vehicle
preparation, pre-conditioning, mileage accumulation, emi-ssion test
maintenance and soaking procedures, as well as the calibration of t
         i
equipment; and related activities.  Commonly, EPA inspects
records, files, papers, processes, controls, and facilities which
are involved in and associated with the above activities and are
maintained, used or generated by the manufacturer at the locations
where test vehicle assembly, SEA test vehicle selection and
testing take place. Also, EPA is authorized to copy documents,
photograph components, test vehicles and facilities and obtain
reasonable assistance from facility personnel in executing its
functions under the SEA program. EPA attempts to enter and
                                             •
conduct these inspection-related activities in conjunction with
each SEA test order for the purpose of monitoring* the activity of
the manufacturer undertaken pursuant to the test order to ensure

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                              -6-

that such activity conforms to the requirements of the test
order -and the SEA regulations.
     7.  The manufacturer is notified by the test order of
the configuration (or alternate) to be tested, the location
from which test vehicles will be selected, when the testing
is to begin and when E?A officers and employees will be
present.  The date of completion of the test, and therefore
the duration of the EPA inspection, is not specified at the
outset because it is not possible to do so.  SEA selection
aad testing normally take up to two weeks.  If the manufacturer
elects to retest vehicles in an attempt to avoid failing an
audit, or if upon failing an audit a re-audit is necessary,
audit activity under the test order Day continue for a
month.  The Clean Air Act Selective Enforcement Audit
regulations, 40 C.P.R. $86.601 et sec., 41 Fed. Reg. 31472
(July 28, 1976), and the test order define the scope and
purpose of.the audit. The test order identifies the EPA
                                                    • '   *
enforcement officers and employees who have been designated
to enter,, observe activities, and inspect records, files,
papers, processes, controls and facilities used in or
associated with the audit.
     8.  Under the regulations and the Clean Air Act, a SEA
test order may be issued to any manufacturer at any time for
any motor vehicle configuration being manufactured.  When a
SEA test order provides less than 24 hours notice to the
manufacturer, the SEA test order must be authorized in
writing by the EPA Assistant Administrator for Enforcement.
     9.  The frequency with which SEA test orders are issued
to any given manufacturer is generally based on that manufacturer's
proportionate share of total vehicle production.  A manufacturer's

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                            -7-
                       •
projected sales volume is used as the basis for establishing
the preliminary number cf SEA test orders to which that
manufacturer nay be subject annually.  A higher production
volume requires more audits for sufficient review of the
manufacturer's production.  The maximum number of SEA test
orders that may issue to a given manufacturer during a given
model year is preliminarily set at the number obtained by
dividing that manufacturer's total projected sales for that
model year by 300,000 and rounding to the nearest whole
number.  40 C.F.R. $86.603(f).  Any manufacturer with
projected sales of less than 150,000 may be subject to an
initial annual licit ofi one SEA test order.  One additional
SEA test order may issue to a manufacturer for each configuration
failing an audit and, when the annual limit figure, inceased
by these additional test orders, has been met, for each
configuration for which evidence exists indicating noncompliance.
Because the agency's resources are limited, EPA may undertake
fewer SEA's than are authorized by its regulations.
     10.  Within these annual limits on the number of test
         •
orders EPA may issue to each manufacturer, EPA employs a
systematic process, as dispussed .below, for .choosing which
configuration of which manufacturer to subject to an audit.
Initially, EPA seeks to issue test orders proportionately among
manufacturers according to their respective annual projected
sales and to distribute those test orders evenly over the course
of a model year.  This process then employs three primary sources of
information, assembly-line test data, projected sales volume, and
certification data, as bases for assigning points to rank
configurations for the purpose of determining which configuratin
                                                 *
would be most appropriate for an audit at a given time.  Once

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                             -8-
configurations are ranked, the process also considers other,
non-quantifiable factors in reaching an ultimate decision about
which configuration to audit.
     11.  Where data being evaluated by EPA from any of these
three sources pertains to individual configurations, points are
assigned to the respective individual configurations according to
the guidelines of the ranking system.  If the data evaluated
pertains to engine families, points based on a engine family's
data will be assigned for ranking purposes to an individual
configuration within the engine family.  The 'configuration
receiving the engine family's points will be identified according
                                                      •
to two factors.  To begin with, its production rate must be high
enough to enable sample test vehicles to be selected for testing
in an expeditious manner.  Once that determination has been made,
its actual physical characteristics (such as engine code, inertia
weight, type of transmission, or rear-axle ratio) which distinguish
It from other configurations within the engine family must make
it the configuration most likely to produce the highest level of
emissions of the configurations in that family.
         •
     12.  Before ranking configurations, SEA's systematic
configuration selection process applies the general objective
that each manufacturer should receive at. least one half of
its annual limit of audits as computed froa its projected        „_
sales during the model year, with those audits distributed
over the model year, to ensure proper review of the total
production of each manufacturer.  Thus under the plan
described below, a configuration of a particular manufacturer
may replace another configuration of any manufacturer which
otherwise would have been chosen for an audit.  This result
                                                 .
occurs whenever issuing the test order to the manufacturer

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                           -9-

of the replaced configuration would have subjected that
manufacturer to a disproportionate number of audits as of
that tiae in the model year.
     13. . The most important factor considered quantitatively
by EPA is a configuration's emissions data which have been
generated by a manufacturer's own quarterly assembly-line
testing and submitted to EPA.  The data allows EPA to
evaluate both the rate at which production vehicles coming
off the assembly line fail to meet an emission standard
for a given pollutant and the mean emission value measured
                                             •
froa assembly-line vehicles as compared to a pollutant's
emission standard.  Points due to failure rates .are assigned
to a vehicle configuration as follows:
       Failure Rate
          Range                      Points                  —
         0-10%                          0
         11-20%                         5
         21-30%                        15
         31-40%                        30
         40% and above                 SO
Points according to the configuration's mean emission value
compared (to the emission standard (std) are assigned as follows:
          Range                      Points
     Mean value is between 0.9          5
     of the std and th* std
     Mean value is greater than        15
     the std but less than or
     equal to 1.1 of the std
     Mean value is greater than        30
     1.1 of the std
Application of the point total derived from these calculations
will take into account the reliability that can be attributed
to the data submitted by a manufacturer.  For example, EPA
will assess the number of vehicles tested in order to
                                                 •
determine the failure rate or mean emission value.  Data

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                             -10-

rellability also depends upon the extent to which a discrepancy
is found in a comparison between past SEA data pertaining to
the configuration in question and the manufacturer's most
recently submitted internal assembly-line data.  Furthermore/
evaluation of this point total also will consider both
whether a manufacturer has failed to provide test data for
one or more configurations in production at the time the
assembly-line data was generated and whether any "running
changes" incorporated into the manufacturer of a configuration
since that tine may be expected to cause the emissions level
                                            •
of the configuration to exceed standards for a pollutant.
     14.  The next most important factor in this point
ranking system is the configuration's (or engine family'*)
                           *
projected annual sales figure as provided by the manufacturer
in its application for certification.  Points based upon
projected sales are assigned as follows:
        Annual Projected Sales              Points
            0-20,000                           0
            20,000-50,000                     10
            50,000-100,000                    20
            100,000 and above                 30
This factor focuses on higher-production models and tends to
assure through SEA review that a high percentage of vehicles
produced complies with the emission standards.
     15.  Finally, certification data generated from prototype   ~
testing and regarding configurations currently in production
are examined; that is, EPA reviews the pertinent certification
data on configurations being manufactured either according to
the manufacturer's original application for certification or
according to its latest running change application for an amended
certificate of conformity.  If the configuration'-s emission
performance level based on that data is within 10% of the emission

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                                          -11-                            :   '

             standard for a given pollutant, 15 points are assigned  to  that
             configuration.  Application of this factor may be adjusted where
             analysis by EPA's certification group indicates that certification
             test data may not be indicative of whether production vehicles  of
             that configuration are likely to meet emission requirements.  The
             focus of this factor is en vehicles that have demonstrated only
             marginal compliance during the certification or running change
             approval process.
                  16.  Aside from these quantitative factors and the
             objective of distributing audits among manufacturers
             throughout the model year, in choosing which configuration
             of which manufacturer to audit EPA takes into account the
 • -1
             location of the manufacturer's assembly plant and test
'• i          facilities.  This factor generally is given significant
             consideration if these establishments are located overseas
             or are otherwise geographically removed from the Midwestern
             United States.  Most manufacturing and testing establishments
             are located in the area, and therefore most audit activity
             can be expected to take place there.  EPA also considers
                      i
             whether a configuration is being manufactured at a sufficiently
             high rate to allow sample vehicles to be sele'cted expeditiously
  •  .         for testing.  Information on current production rates of
             configurations might not be requested from a manufacturer
             so as to avoid suggesting to manufacturers which configur-
             ations may be subject to an imminent test order.  Thus, a
             test order can designate an alternate configuration of that
             manufacturer for testing, chosen according .to the normal
             systematic process described above subject to the constraints
             regarding location and production rate, in the event that the
             primary configuration is unavailable for testing.

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                                       -12-

                 17.  Automobile manufacturers for the cost part have
            centralized their testing facilities in eastern Michigan.
            Consequently, they generally have expressed a preference
            that vehicle selection for any audit of any configuration
            produced in that area and others take place at a plant in
            that area. Pursuant to 40 C.F.R. $86.603(d), EPA complies
            with these indicated preferences when specifying locations
            for vehicle selection pursuant to a test order unless the
            Administrator determines that information exists indicating
            noncompliance at other plants.  Zf a manufacturer does not
            indicate a preferred plant for a configuration being
 i           audited, the test order vill specify that test vehicle
            selection be conducted at the location closest to the
 '           manufacturer's testing facility at which a sufficient number
            of vehicles are available from which a sample representative
            of the configuration can be chosen expeditiously, unless it
            is determined that evidence exists indicating non-
            compliance at another plant.  Since the goals of the EPA'
            program can be accomplished with a relatively high percentage
            of audits testing vehicles selected from locations in eastern
 •         •  Michigan, « relatively high percentage of vehicle selection
            for SEA's takes place in that area.  Once a test order has
 ,       '•   been issued covering a specific manufacturer, configuration      _
* il              "
 •           and facility for sample test vehicle selection, EPA sends a
            team of enforcement officers to the manufacturer's facilities
            where selection and testing take place for the purpose of
            monitoring the manufacturer's activity performed in response
            to the test order.
                 18.  Experience with the administration of the SEA program
                                  •                        '   •
            has produced indications that providing a manfacturer with advance

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                                -13-                           :
  notice of an intent to require SEA testing before EPA enforcement
  officers can gain access to the manufacturer's facilities pursuant
•  to that test order can give the manufacturer an opportunity to
  alter its production processes.  The manufacturer thereby can
  bias production of a vehicle configuration so that sample vehicles
  •elected for SEA testing will not provide representative data
  which would enable EPA to review accurately the manufacturer's
  production of that configuration on the whole.  Such
  notice would occur if EPA enforcement officers requested
  permission to enter a facility to monitor activity related
                                              •
  to the SEA, and permission to enter were refused, before
  a warrant authorizing that entry were obtained.
       19.  On the basis of 1978 model year projected sales
  alone General Motors may be subject to 20 test orders during
  the model year and has been subject to 10 orders thus. far.
  Ford may receive 11 test orders on the basis of projected
  sales and has been issued 8.  Chrysler may receive 5 test
  orders based on projected sales and has received 6, since
  one of its configurations -failed an audit.  See 40 C.F.A.
  S86.603(f).  American Motors may be issued 1 test order
  based on projected sales and has not yet received any.  Four
  European and three Japanese auto manufacturers have been
  audited during the current model year.
       20.  GM is a manufacturer of automobiles and operates
  facilities devoted to that purpose at its Willow Run vehicle assea
.  plant in Ypsilanti, Michigan.  GM also operates emission
  testing facilities at its vehicle emissions testing laboratory
  ia Milford, Michigan, where GM usually ships cars for
  SEA testing after such cars have been selected at a vehicle
  assembly plant as SEA sample test vehicles.  GM produces
  hundreds of different configurations during the model year.

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                           -14-

      21.  CM is still eligible to receive 10 SEA test orders
for model year 1978 configurations.  The configuration specified
in the SEA test order issued on July 28, 1978, has been chosen
as the subject for SEA testing because of the configurations
currently under production and available for selection it has
accumulated the greatest number of points under EPA's systematic
process for choosing configurations to audit and because no
non-quantitative factors indicate that another configuration is
more appropriate for auditing.  Assembly-line test data submitted
by GH which, according to our analysis, pertains to its engine
code 2 configuration of its 840B2 engine family with 4000-pound
inertia weight, A-3 transmission and 2.56 rear axle ratio shows a
56% failure rate of vehicles tested with respect to the emission
standard for nitrous oxides (NOx), giving that configuration
50 points for ranking purposes.  The mean emission value for NOx
derived from this assembly-line testing (1.99 grams/mile) falls
within 0.9 of the NOx emission standard {2.J3Q grams/mile),
contributing another 5 points.  The projected annual sales
for this configuration is 63,741, giving the configuration
an additional 20 points.  Certification testing conducted for
this cqnfiguration produced data which showed the prototype
CO emissions level (15 gram/mile) to be within 10% of the CO
emission standard (also 15.0 grams/mile), thereby assigning the
configuration 15 more points.  The configuration's point total
of 90 is the highest for any configuration remaining in production
                         •
long enough and at a rate high enough to allow for expeditious
sample test vehicle selection pursuant to the SEA regulations.

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                            -15-

     22.  The document, which_is attached and incorporated
by"reference, and sets forth the SEA test order for this
configuration will be delivered to CM by an EPA enforcement
officer at the same time the designated officers and employees
appear at GM's vehicle assembly facilities in Tpsilanti,
Michigan, to begin monitoring GM's activities performed
pursuant to the SEA test order.  The entry, observation and
inspection there and at GM's vehicle emission testing
laboratory in Hilford, Michigan will be consistent in
purpose, scope, location and timing with the Clean Air Act,
this Court's administrative warrants, EPA regulations, the
test order and the program described in this affidavit.
                                  MATTHEW LOW
Sworn and subscribed before m«
this     *	day of 	 , 1978

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ATTACSMS!T III
            NEUTRAL INSPECTION SCHEME FOR AETOSOL FILLERS
1.    The rule published by EPA on March 17, 1978 (43 FR 11318) bans
      processing of fully halogenated chlorofluoralkanes, or CFC's,
      for aerosol propellant uses after December 15, 1978, except for
      certain essential uses.  Such processing would be done by busi-
      nesses known as aerosol fillers.

2.    Only aerosol fillers who have bought CFC's since October 15,  -
      1978 or who are otherwise known to be in the position to fill
      aerosols with CFC's after DecerJber IS, 1978 will be candidates
      for inspection.  Such fillers may be identified by inspections
      of the records of CFC manufacturers, by information frcm the
      Consumer Product Safety Conmission (CPSC), or by other means.

3.    Such candidates for inspection will be ranked according to the
      relative quantity of CFC's estimated to have been received after
      December IS, 1978.  Fillers estimated to have received more CFC's
      will be assigned higher priorities for inspection.  Such esti-
      mates shall be based on the records of quantities distributed
      by CFC manufacturers.  If the amount of CFC's received by a
      candidate for inspection is unknown, then that filler will be
      assigned a ranking in the middle of the ranked list.

4.    A ranked list of candidates for inspection will be sent to each
      Regional office.  Such lists may be amended later by information
      frcm the CPSC or other sources.

5.    The total number of aerosol fillers to be inspected in FY 79
      by each Regional Office will be determined first.  Then the
      ranked list will be used to identify the particular fillers to
      be inspected.  The total number to be inspected in each Region
      will be inspected, and so that an approximately equal proportion
      of the fillers in each Region will be inspected.

6.    The sequence of inspection shall be determined by the rank order
      of the list, except that this sequence may be adjusted to conserve
      Agency resources (such as by combining several inspections in one
      trip.)

7.    This neutral inspection scheme will be modified after the annual
      reports required by the CFC rule to be submitted by March 31/
      1980 have been analyzed.

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 entering into nearby waterways Including waters  of the
 United States and its tributaries,  as  well  as  posing a
 threat to the environment and the public health  and welfare
 of the United States.
                a.   The reported death of a 19 year old
 truck driver at the CLAW (EPA, Inc.) open pits on July 25,
 1978 while he was discharging waste into an open pit at th«
 facility.  The death was possibly caused by his  inhalation
 of toxic fumes caused by a reaction of mixing  incoopatibl*
 toxic wastes in the open pit.  Two  eye witnesses to the
                                       •
 death of the driver reported the presence of choking funes
Ila the area when they opened the'doors to their  truck to
 assist the driver who died.  .They also reported  that his
 truck was parked at the edge of the open pit with the doors
 open at the tiae of death.   Subsequent laboratory.tests of
 waste taken from the pits have shown waste  materials were
 present in the pit, which,when mixed with the spent caustic
 being discharged from the driver's  truck could have caused
 the death.  Final autopsy reports are  still pending.   It is
• allegedly reported that CLAW facility  officials  directed the
           •
 driver to take and discharge his wastes to  the truck rasp on
 the edge of an open pit.  Discharging  toxic waste into an
 open pit at the edge of a pit is not a safe, desirable,  or
 acceptable practice since toxic chamical. reactions are very
 probable and can result in the death of anyone nearby.
                5.   Section 308 of  the.Federal Water Pollution
 Control Act, 33 USC 1318,'and section  3007  of  the Resourca
       •                                                    *
 Conservation and Recovery Act of 1976, (42  USC 6927), pro-
                                       •
 viding for entry, inspection, record inspection  and copying
 and sampling are reasonable, in the public interest and
 accessary in order 'to" carry out the provisions of these
 Acts, which Acts are designed to protect the environment, as
                            -3-

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natter ic is reasonable Co assume Che need for inspection

based on the information and observations sec out in paragraph

4 above and in the public interest.
                                              C
                              E£ WARD C .~tl
                              CK1LMICAL ENGINEER
                              UNITED STATES
                                PROTECTION AGENCY
Subscribed and svorn to before me

At Baton Rouge, State of Louisiana,

this    /o    of    f>..— ^tJ-    1978.
                             -4-

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           UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                       WASHINGTON. D.C, 20460
                                  I iWl           • '     OFFICE OF
                                               LE,OAL COUNSEL AND ENFORCEMENT
MEMORANDUM

SUBJECT:    Contacts with  Defendants and "Potential
            Defendants  in  Enforcement Litigation

TO:         Addressees

FROM:       William A.  Sullivan,
            Enforcement Counsel

     Most of  the Agency's staff is aware of the need to
consult with  the Department of Justice (DOJ) before contacting
defendants  in enforcement litigation or potential defendants
in cases referred to Justice for  filing.  Z want to stress the
importance  of giving DOJ  an opportunity to participate in any
meetings with such persons or firms to review their compliance
status.  Failure to observe proper practice in this regard can
seriously undermine the Department's ability to effectively
 represent EPA and ultimately diminish the prospects for satis-
factory enforcement of environmental laws.

     Headquarters and  regional enforcement personnel snould
already be  aware of the importance of including Justice in
such discussions when  they r .*e initiated by EPA, and of giving
the Department notice  of  and opportunity to attend meetings
requested by  potential defendants or their counsel.  Justice's
caseload may  not always permit them to send a representative,
in which case EPA staff should thoroughly coordinate the
ground rules  of the contact with  DOJ in advance.  Follow-up
information should be  provided to the Department's attorneys
promptly after the conclusion of  any meetings.  This is the
procedure Z shall expect  to be followed at all times.

     Z also want to urge  enforcement staff to caution their
•client* program offices  and others within the Agency about
the sensitivity of contacts with  persons or firms that have
been named  in cases referred to Justice for filing.  There  •
are many natters unrelated to an  enforcement action — proces-
sing of grants, development of rules, etc.— in which a party
nay be interested and  which may be discussed without counsel
present.  Care should  be  taken, however, to determine the
purpose(s)  for which meetings are sought by defendants and
potential defendants so that appropriate arrangements can be
«aade.  Zf Batters related to a pending case are raised by such
arsons during the course of a meeting arranged for other
purposes, the discussion  should be interrupted and continued
only after  consulation with in-house enforcement counsel and
DOJ.

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                                - 2 -


     Your cooperation will assure that litigation strategy •
is not compromised by inappropriate discussions,  and can avoid
embarrassment from last minute cancellation or rescheduling   .
of meetings.  Zf you have questions about whether a particular
person, firm, or state or local government is a defendant in
enforcement litigation or is a potential defendant in a case
which has been referred to the Department of Justice, please
contact Jonathan Libber of ay staff at 426-7503*

     Addressees: John Daniel, Chief of Staff  ;
                 Assistant Administrators
                 Enforcement Office Directors
                 Regional Administrators
                 Regional Enforcement Division Directors

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                                7

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             UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                 i .       WASHINGTON, D.C. 20460
                              DEC i 0 !33I
                                                           ernes or
                                                         GENERAL. COUNSEL.
MEMORANDUM
SUBJECT:  Ex Parte Rules Covering Communications
          on Issues Which are the Subject of Formal
          Adjudicatory Hearings
FROM:     Robert M. Perry  &*•*•*' "*•*- y^-~*<.—
          General Counsel  (A-130)            v

TO:       John E. Daniel
          Chief of Staff
          Office of the Administrator  (A-100)


     The Office of General Counsel has been asked to advise your
office on the handling of  ex parte communications on issues
arising in formal Agency adjudications.  This question  is irapor-
 .ant because ex parte communications may occur  when, for example,
a party to pending or ongoing litigation seeks  a  speedier, more
direct resolution of the litigation than is offered by  the formal
adjudication. In some cases, telephone calls, letters or even
casual remarks relating to a substantive issue  in litigation can
constitute an improper ex  parte communication.  In general, such
communications concerning  the merits of a proceeding create the
risk that an adjudicatory  decision may be set aside by  a reviewing
court.  However, the ex parte rules do not preclude the Administrator
from engaging in discussions with persons regulated by  .EPA
merely because those persons happen to be involved in a formal
adjudication.

     Accordingly, we have  prepared this memorandum to guide your
staff (1) in recognizing and avoiding  improper  ex parte communi-
cations and (2) in taking  remedial steps if an  Improper ex parte
communication occurs.  Sections I-III of this memorandum define ex
 arte contacts and describe the rules governing them.   Section
 V describes measures for  minimizing the adverse  legal  impact of
such communications when they occur.

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                              - 2 -


 I.  Why do we have rules about ex parte contacts, and to what
     do they apply?

     The Agency conducts formal adjudicatory hearings in a number
of areas, including:

        0  Hearings to decide whether pesticide registrations
           should be denied, cancelled, suspended, or modified,
           under Section 6 of the Federal Insecticide, Fungicide,
           and Rodenticide Act, as amended (7 U.S.C. S136d).

        0  Hearings to decide whether to assess any civil penalty
           under Section 14(a) of the Federal Insecticide, Fungicide,
           and Rodenticide Act, as amended (7 U.S.C. $1361(a)).

        0  Hearings to decide whether to assess any civil penalty
           under Section 211 of the Clean Air Act, as amended (42
           U.S.C. §7545).

        0  Hearings to decide whether to assess any civil penalty
           or to revoke or suspend any permit issued under Section
           105 (a) and (f) of the Marine Protection, Research,
           and Sanctuaries Act, as amended (33 U.S.C. $1418(c))

        0  Hearings on the issuance of a compliance order or the
           assessment of any civil penalty conducted under Section
           3008 of the Solid Waste Disposal Act, as amended (42
           U.S.C. $6928).

        0  Hearings to decide whether to assess any civil penalty
           under Section 16(a) of the Toxic Substances Control Act
           (15 U.S.C. S2615(a)).

        0  Hearings conducted in connection with the termination
           of a hazardous waste permit under the Resource Conser-
           vation Recovery Act. (42 U.S.C. $6928(b)).

        0  Hearings to challenge the issuance of any individual
           National Pollutant Discharge Elimination System permit
           for a point source discharge under Section 402 of the
           Clean Water Act. (33 U.S.C. $1342).

        0  Hearings to determine data compensation amounts under
           the Federal Insecticide, Fungicide, and Rodenticide Act,
           as amended.  (7 U.S.C. $136(d)).

     Under the Administrative Procedure Act (APA), (5 U.S.C. §551 et
seq.), the decisions which result from these adjudicatory hearings

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                               -3-


must be based solely on the formal record compiled during the
proceeding, i.e., the pleadings, transcripts, exhibits, and
briefs.  In order to safeguard the integrity of the adjudicatbry
process, the Administrative Procedure Act prohibits all extra-
record communications relevant to the merits of an adjudicatory
proceeding between Agency decision-makers and interested persons
inside or outside the Agency.  5 O.S.C. 554(d), 557(d)(l).  A
decision made in a formal adjudication may also be subject to legal
challenge if there is reason to think that it was based on any
material fact which is not a part of the formal record.  5 O.S.C.
554(d)(l), 556(e).-  In recognition of these statutory provisions,
the various Agency regulations concerning hearing procedures
(see 40 CFR §§22.01, 124.78 and 164.7) and pertinent judicial
precedent establish rules dealing with "ex parte" communications
made to or by persons responsible for malcTng decisions in adjudi-
catory hearings.  The remainder .of this memorandum will discuss
what "ex parte" communications are, and the rules that apply to
them.

II.  What is an ex parte communication?

     One definition appears in the APA, 5 O.S.C. §551(14):

                "Ex parte communications means an oral
           or written communication not on the public
           record with respect to which reasonably prior
           notice to all parties is not given, but it
           shall not include requests for status
           reports. ..."

This definition is somewhat cryptic and incomplete, however.  A
more useful working definition is:

               "Ex parte communication" means any
          communication  (written or oral) concerning the
          merits of an ongoing formal adjudicatory pro-
          ceeding, between any decision-maker and either
          (A) any interested person outside the Agency,
          or (B) any member of the Agency trial staff,
          if^ any of the parties to the hearing did not
          receive prior written notice that the communi-
          cation would be made or were not invited to be
          present and participate in the communication.^/

An  ex parte communication could take the form of a letter, telephone
conversation, meeting, or other informal discussion.   (Of course,
 I/This  definition  is  in  large  part  a paraphrase of  the definition
 In  40  CFR §124.78.

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                               -4-
pleadings, testimony, and the like presented or filed according to  (
the hearing rules are not covered.)

III. What are the rules governing ex parte communications?       |
                                                                 •*:
     In brief, the APA and related EPA regulations state that ex
parte communications concerning the merits of a proceeding are
improper but also recognize that they may nonetheless occur and  •
provide mechanisms designed to counteract their possible influence
on decision-making.

          A.  What kinds of communications concern
              "the merits" of a hearing?

     As indicated above, the prohibition against ex parte contacts
covers communications regarding the merits of an ongoing adjudi-
catory proceeding.  This restriction is to be construed broadly
and covers not just communications regarding facts in issue, but
any statement which could affect the Agency's decision on the
merits.  Inquiries about scheduling and other procedural matters
(such as requests for status reports) may properly be made ex
parte.  (The Administrator has traditionally referred such inquiries
to the appropriate trial staff for a response.)  In doubtful cases,
the prudent course is for the Agency decision-maker to treat the
communication as one which may concern the case's merits.

          B.  What communications within the Agency are prohibited?

     In almost every formal adjudication conducted by EPA,^/
one of the parties is the Agency trial staff.  Typically, the
order by which the Administrator (or his delegate) initiates the
hearing contains a designation of the Agency personnel who will
make up the Agency trial staff.  That order often also designates
those persons who will serve as adjudicators in the proceeding
(typically the Administrator or the Regional Administrator, the
Judicial Officer, an Administrative Law Judge, and sometimes
others.)

     Members of the Agency trial staff are forbidden from
communicating with the Administrator (or other designated adjudi-.
cators) on an ex parte basis concerning the merits of the proceeding.
Although the Administrator theoretically can consult with other
27There is one exception:hearings under FIFRA S3(c)(l)(D) to
determine data compensation payment amounts are disputes between
private parties which are decided by EPA.  The Agency is not a
party in these cases.

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                               -5-
Agency personnel who are not (and have not been) involved in
trial staff functions (and who do not represent other interested
persons), no substantive consultation which may concern facts at
issue should occur unless all parties are notified and given an
opportunity to participate.  Otherwise, there exists a substantial
risk that the Administrator's decision might be based on evidence
that has not properly been made a part of the record of the
proceeding.

          C.  What communications with persons outside the Agency
              are prohibited?

     The APA also prohibits e_x parte communications between the
Agency adjudicators and "interested persons" outside the Agency.
The legislative history says that the term

           "is intended to be a wide, inclusive term. . . .
           The interest need not be monetary, nor need a
           person be a party to, or intervenor in, the
           agency proceeding to come under' this section.
           The term includes, but is not limited to,
           parties, competitors, public officials, and
           non-profit or public interest organizations
           and associations with a special interest in
           the matter regulated."

Government in the Sunshine Act, Committee on Goverment Operations,
H.R. REP No. 94-880, 94th Cong., 2d Sess. (1976), at 19-20,
Source Book: Legislative History, Texts, and other Documents,
Committees on Government Operations, U.S. Senate and House of
Representatives, 530-531.  With certain exceptions,^/ it seems
logical to treat the very fact of a communication concerning the
merits of an adjudicatory proceeding as evidence that the person
making it is "interested."  Certainly anyone whose communication
seems designed to influence the outcome of the case (or the
timing of rulings) should be treated as an interested person.
Again, where there is doubt about a communication's status, it
should be treated as one by an interested person.

     As noted earlier, the ejc parte rules prohibit not only
communications by interested persons to Agency adjudicators, but
also communications by Agency adjudicators to interested persons.
This could present problems in situations where the adjudicator
does not know whether the persons to whom he or she is speaking
_3/ Routine  inquiries  from the news media, or from persons whose
interest in the case  is purely academic, normally would fall
outside the rule's coverage.

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                               -6-


are "interested."  Moreover/ as in the case of communications
with non-interested Agency personnel, the adjudicator should
avoid substantive communications with any person outside the
Agency (whether interested or not) concerning facts at issue
in the proceeding, unless all parties are notified and given an
opportunity to participate.  Finally, discussion by the adjudi-
cator of the merits of an ongoing proceeding may lead people to
assume the matter has been pre-judged even if technically there
is no violation of the ex parte rules.

IV.  How can ex parte communications be minimized, and what
     should be done if they occur?

     It is probably impossible to prevent entirely the occurrence
of improper e_x parte communications.  In a discussion of general
matters between industry representatives and the Administrator,
for instance, the conversation may inadvertently move to a matter
which is involved in an adjudication.  The Administrator must deal
with a wide variety of topics, most of which are not covered by
the ex. parte rules, and should not feel constrained to avoid
discussions with persons who are regulated by EPA merely because
those persons also may be involved in some formal adjudication.
But the ex parte doctrines must be kept in mind if such discussions
are to be held.

     There are two kinds of measures — preventive and curative —
that should be taken by your office to lessen the likelihood of
problems.  Preventive measures should include:

     (1)  An awareness on the part of the Administrator and her
          immediate staff of the importance of the principles
          discussed in this memorandum;

     (2)  A system designed to keep the staff aware of the
          adjudicatory proceedings that are in process, and the
          parties to and issues in those proceedings;

     (3)  Attention to potential ex parte problems when scheduling
          meetings, drafting speeches, and screening telephone
          calls, and reminders by the staff of topics that should
          be avoided; and

     (4)  Similar attention to the problem by those who handle
          incoming and outgoing written correspondence; and

     (5)  For "ex parte* purposes, members of the Administrator's
          personal staff should consider themselves to be part
          of the decision-making team headed by the Administrator.
          Otherwise, serious practical and legal problems could

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                               -7-
          arise in insulating decision-makers from staff members
          who have received or initiated ex parte communications.

     The principal curative measure, once an improper ex parte
communication has occurred and has been recognized as such, is to
make the content and circumstances of 'the communication a part of
the official record of the proceeding and afford the parties a
chance to respond on the record.  (If the communication was oral,
a written memorandum of it must be prepared.)  The written communi-
cation (or the memorandum summarizing the oral communication)
must be.forwarded to the Office of the Hearing Clerk, A-110, with
a request that copies of it be furnished to all parties.  This
procedure is designed to nullify the "secret" nature of the
communication and thereby preserve the fairness and integrity
of the decision-making process.

     In cases where an interested party outside the Agency has
knowingly and egregiously violated the ex parte rules, the APA
permits the Administrator or other adjudicator to render a deci-
sion adverse to that person.

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r

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        UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                      WASHINGTON, DZ 25460
                                                       OFFICE OF
                                               UCCAL. AND CNFOnCEMCNT COUNSEL.
MEMORANDUM
SUBJECT:

FROM:



TO:
Draft DOJ/EPA Litigation Procedures
Robert M. Perry
Associate Administrator for Legal
  Counsel and General Counsel

Associate Adminis-trator
Assistant Adninistra-tors
Regional Administra-to^e
.Office Directors
Regional Counsels
                                   nd Enforcement
     In furtherance of the Administrator's policy to strengthen
and improve this Agency's enforcement capability, particularly
with regard to litigation, a meeting with the Department of
Justice to discuss these matters occurred yesterday at Quantico,
Virginia.  I am pleased to report tha'i it was highly productive
and successful.  Attached is a surrnary of the matters discussed,
the recommendations produced and a process that will strengthen
our enforcement efforts.  Each of you has a critical role  to
insure the success of this vital endeavor, and I look forward
to discussing it with you ahd receiving any comments you may
have.
Attachment

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         ENFORCEMENT GOALS AND OBJECTIVES


                        Of  .

      C77JCS C? LEGAL AND ENFORCEMENT COUNS:
       J. S. ENVIRONMENTAL PROTECTION AGENCY
1.  The role of enforcement is to support and advance
    the regulatory policies of EPA through use of all
    available enforcement means; to insure compliance
    with applicable laws and regulations; to deter
    unlawful conduct and to remove any incentive to
    non-compliance.

2.  The regulated community is entitled to fair notice
    of EPA's policies and the requirements they impose
    on the regulated community.  All members of the
    regulated community should expect that they will be
    treated in a consistent, fair manner which              •
—	removes any- corapeti-tive-advantage-gained--by-non=-	^	
    compliance.

3.  EPA is responsible for establishing regulatory policies
    and enforcement goals, priorities and procedures to
    effectuate its policy initiatives.  These policies
    and priorities are what guide the Department of Justice
    in its role as EPA's litigation counsel.  This litiga-
    tion will be conducted pursuant to the Qu:-r.tico Guide-
    lines for Enforcement Litigation developed between
    the Environmental Protection Agency and the Department
    of Justice.                                             -  -

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       QUAN7ICO GUIDELINES FOP. ENFORCEMENT LITIGATIOK
1.  GOALS AND PURPOSES

          ?or SPA

               To achieve compliance with applicable law

          through effective enforcement.

               To inform the regulated communities, Congress

          and the public that EPA will enforce the statutues

          it administers in a prompt, fair and even-handed manner.



          For DOJ

               To provide the litigation support necessary to

          aid EPA in the accomplishment of these goals. .
                                                                  •
2.  GZHSRAL OBSERVATIONS

          A.  Emphasis will be placed on bringing meaningful

          enforcement cases, particularly hazardous waste cases,

          criminal cases and enforcement of existing consent

          decrees;

          B.  Especially with regard to recently-enacted
                                                                  «
          statutes, DOJ needs policy guidance from EPA to

          give direction on enforcement activity and to main-

          tain consistency;

          C.  Regional offices of EPA will be the lynch-

          pin of the agency f cr identifying and developing

          enforcement matters ;
          trators p-i-ay Key rcj.es in me enxorcemeut

          which are being clarified;

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                                - 2 -

          E.   States, where possible, should be givun the
          opportunity and incentive to initiate enforce-
          ment cases.  Effectiveness of state enforcement
          actions will be considered;
          F.   While national enforcement priorities are
          necessary, flexibility is desirable for region-
          by-region determinations;
          G.   Criminal enforcement priorities and
          processes are being developed separately from
          civil matters;
          H.   United States Attorneys play a critical
          role and should be involved wherever possible;
         _!.•__jtetgeenEpA^Headquarters and the regions.
          areas of responsibility will be identified
          to allow regional flexibility.
          J.   Focused use of administrative discovery
          powers is necessary for effective investigation
          of the factual/technical basis for cases.

3.  RESPECTIVE COMMITMENTS
          A.   On enforcement policy formulation, EPA
          will seek, where appropriate, to confer and
          coordinate with DOJ concerning potential in-  .
          pacts on litigation;
          3.   Policy guidance given, to R.A.'s and R.C.'s
          v'11. also be orovided to DOJ:

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                      - 3 -

C.   Informal working groups in all media
will continue (or be established) to pro-
vide DOJ/EPA-OGC input to address legal issues;
D.   Associate Administrator Ferry and Assistant
Attorney General Carol E. Dinkins will be available
to discuss new enforcement guidance with R.A.'s
and K.C.'s in U.C.  To be discussed will be R.A.
accountability and commitment to a sustained,
orderly enforcement program that includes litiga-
tion as a desirable component;
£.   Associate Administrator Ferry will meet with
Assistant Administrators on enforcement policy.
to clarify roles and secure commitments from
program side for sufficient technical support;
F.   Assistant Attorney General Dinkins will
make similar presentations to United States
Attorneys on policies, processes and roles;
G.   Violations will be discovered through
self-reporting, regular inspections, citizen
complaints, administrative discovery and
trained criminal investigators;
H.   Administrative powers, to be used for
investigatory purposes, should be delegated
to regions by eliminating need for Head-
quarter's concurrence;

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                                - 4 -

          I.   Ones a case is referred, the government
          will remain open to negotiation but will con-
          tinue to move the case to trial.

4.  PROCESS
          A.   DOJ attorneys assigned on a regional basis
          to handle All nedia;
          B.   EPA regional enforcement attorneys are media-
          specific;
          C.   A lead agency attorney (generally an attorney
          from the region) will be designated to manage the
          case for the agency and coordinate with DOJ;
          D.   Regular, monthly meetings will be held in
          .the regions, attended by DOJ and EPA attorneys,
          with technical staff present and AUSA's invited
          to discuss:
               1.  general enforcement actions, in-
               cluding EPA administrative processes
               and investigations exclusive of criminal
               matters;
               2.  cases targeted-by EPA as likely
               candidates for litigation, to deteriae
                   a.  whether DOJ assistance prior
                   to referral would be helpful; and
                   b.  adequacy of agency de-
                   velopment of case;

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                      - 5 -

     3..  cases previously discussed as
     tie cters to be identified for case
     development to DOJ;
     4.  separate meetings will be
     held in the regions with program
     heads to discuss program enforce-'
     Bent priorities and concerns;
£.   Following discussions at monthly meetings
regarding potential matters for case develop-
ment, when region determines that natter is a
potential civil enforcement case, R.C. requests
DOJ assistance for case development
     1.  team is formalized at this point,
     in anticipation of litigation;
     2.  technical support is committed;
     3.  goal is resolution through nego-
     tiated settlement or final judgment;
F.   Vlien a case hasCrnaturedT^he regional
administrator requests the Associate Admin-
is tator to refer the case to DOJ for litiga-
tion;
G.   Seme cases will be referred directly to
DOJ without foraing a case development teas.
H.   For true emergencies, telephonic authori-
zaticr. to file vill suffisa;
                                                         \
                                                         V
                                                         \

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                      - 6 -

I.   A new reiarral package format, mor-,.
streaa-lined and appropria:*'. to the case
development process identified above will
be produced;
J.   For cases referrsd before monthly
meetings begin, DOJ and EPA will confer
informally prior to referral;
K.   Associate Administrator Ferry and
Assistant.Attorney General Dinkins are
available for dispute resolution if
difficulties or disputes cannot be
handled at intermediate levels;
L.   Coordination for all of these efforts
                             %
will include
     1.  Perry and Dinkins visits Co
     regions;
     2.  Perry and Dinkins bi-weekly
     meetings with staff;
     3.  Perry and Dinkins monthly
     meetings without staff:
     4.  regular monthly meetings at
     staff level in regions;
     5.  working groups in D.C. on
     DOJ input into policy formulation
     re litigation impact;

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               6.   Basic understanding by both
               agency and DOJ lawyers of their
               respective roles and the need
               for a cooperative spirit.
5.  SPECIFIC ISSUES DISCUSSED
          A.  EPA is establishing guidelines for
          Superfund national strategy including
          especially criteria for which injunctions
          are appropriate and whether the regions
          or headquarters has the initiative for
          Superfund enforcement;
          B.  Existing Consent Decrees
               1.   collection and analysis of
               compliance status of all existing
               consent decrees to be accelerated;
               2.   uniform policy to be adopted
               on modification of existing decrees
               through judicial action;
               3.   violations of existing consent
               decrees are a top priority for
               enforcement;
               4.   collection cf stipulated penalti
          \

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r

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         UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                      WASHINGTON, DC 20460
                      30  APR 1982
                                                      OFFICE OF
                                               LEGAL ANO ENFORCEMENT COUNSEL
MEMORANDUM


SUBJECT:  Agency Guidelines for Participation in
                Jury Investigations
FROM:    "Robert M. Perry/Associate Administrator
            for Legal ana Enforcement Counsel

TO:       Associate Adminstrators
          Regional Administrators, Regions I-X
          Regional Counsels, Regions I-X
          Director, National Enforcement Investigations Center


     Federal grand juries are almost always used to develop
EPA's criminal cases following referral to the Justice Depart-
ment.  Frequently, EPA employees—including investigators,
lawyers and technical personnel—assist in these grand jury
investigations under the supervision of the Justice Department.
The conduct of Agency employees involved in grand jury investi-
gations- is frequently subjected to close judicial scrutiny,
since defense counsel routinely challenge aspects the grand jury
presentation during post-indictment motions.  Accordingly,
Agency employees who assist the Justice Department during
grand jury investigations must be familiar with, and abide
by, the rules of conduct established for this institution
by case law and the Federal Rules of Criminal Procedure.

     The attached "Agency Guidelines for Participation in Grand
Jury Investigations" have been drafted to provide Agency employees
with a general knowledge of the most important rules surrounding
grand jury investigations.  Please take immediate steps to  insure_
that personnel working within your offices who are assigned to
assist in grand jury investigations are completely familiar with
the details of this guidance document.

     Questions on any matter raised in this document should be
directed to Peter Beeson, Acting Director, Office of Criminal
Enforcement (FTS 382*4543).

Attachment

cc:  Carol Dinkins
     Assistant Attorney General
     Land and Natural Resources Division

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    AGENCY GUIDELINES

           FOR

      PARTICIPATION

           IN

GRAND JURY INVESTIGATIONS
        United States Environmental
             Protection Agency
       Effective Date:
                         APR 30B82

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                 TABLE OF CONTENTS




INTRODUCTION	1

I.  BACKGROUND: THE ROLE OF THE GRAND JURY	2

II.  THE OPERATION OF THE GRAND JURY	3

     Authorized Persons Before the Grand Jury	4

     The Statutory Recording Requirement	5

     The Indictment Process	5

III.  GRAND JURY SECRECY	6

     The Rule and its Exceptions	6

     Disclosure of Grand Jury Materials to
          Agency Supervisors	9
     Disclosure of Grand Jury Materials in
          Parallel or Subsequent Civil/
          Regulatory Proceedings	10

     Media Inquiries Concerning Grand Jury
          Proceedings	12

IV.  CARE AND CUSTODY OF GRAND JURY MATERIALS	12

V.  CONCLUSION	13

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  AGENCY GUIDELINES FOR PARTICIPATION IN GRAND JURY
                  INVESTIGATIONS
                  INTRODUCTION

     In the past, EPA has relied extensively on the grand
jury to develop its criminal referrals.  With the projected
hiring of criminal investigators who will be capable of
more complete, pre-referral case development, this reliance
may decrease somewhat.  Given the nature of EPA's criminal
jurisdiction, however, the grand jury will always be a
significant component of the criminal case development
process.

      This guidance document is written to provide a
general understanding of the grand jury process, and of
the particular responsibilities born by EPA employees
involved in grand jury investigations.  In drafting
this document, the Agency has coordinated closely with
the Department of Justice, since its participation in
grand jury investigations will occur only in partnership
with attorneys of the Justice Department and the offices
of its local United States Attorneys.  In addition,
the views of regional offices were solicited on one
issue of particular sensitivity: the need for access
to confidential grand jury materials by EPA managers.

     The guidance contained within is not intended to
supplant rules of procedure for the conduct of grand
jury investigations contained in the United States Attorneys'
Manual, or developed by the specific United States Attorneys.
It will, however, provide internal guidelines for EPA
employees where no specific Justice Department rules
exist.  This document will replace any previous Agency
guidance on this subject.

     Finally, this guidance is strictly advisory in
nature, and is not intended to create or confer any rights,
privileges or benefits on prospective witnesses or defen-
dants.  It is not intended to, does not, and may not be
relied upon to create any'rights, substantive or proce-
dural, enforceable at law by any party in any matter,
civil or criminal.  Any attempt to litigate any portion
of this guidance should be brought directly to the
attention of the Office of Criminal Enforcement, EPA
Headquarters.

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I.  BACKGROUND;  THE ROLE OF THE GRAND JURY

     The grand jury serves two basic functions: investi-
gative and protective.  In cases where traditional field
investigation techniques have failed to produce adequate
evidence to support a criminal prosecution, the grand
jury's compulsory process, in conjunction with statutory
immunity grants, can be used to compel testimony and the
production of documents.  This is particularly important
in white collar crime cases, in which the loyalty of the
investigative targets, together with the private—often
inaccessible—settings of the suspect activity, often
frustrate more traditional field investigative methods.

     The grand jury also acts as a check on independent
and overzealous prosecutorial decision-making.  The Fifth
Amendment to the United States Constitution guarantees
that Federal felonies_JL/ will be charged by grand jury
indictment.  Misdemeanors can and often will be charged
by indictment.  This is not a constitutional requirement,
however, and they are sometimes charged in an "information"
filed independently by the prosecutor without prior
consideration of the underlying evidence by a grand jury.
It is the function of the grand jury to determine whether
there is probable cause to believe that a Federal offense
has been committed by the defendant(s) named in the proposed
indictment.

     The Supreme Court has described the dual functions
of the grand jury as "both the determination whether
there is probable cause to believe a crime has been
committed and the protection of citizens against unfounded
criminal prosecutions."  United States v. Calandra, 414
U.S. 338, 343  (1974).  Stated alternatively, the purpose
of the grand jury is "to provide a fair method for
instituting criminal proceedings" by a body that is
"independent and informed."  Costello v. United States,
350 U.S. 359, 362 (1956).
I/  A felony is defined at 18 U.S.C. §1 as "any offense
punishable by death or imprisonment for a term exceeding
one year."  Any other offense is a misdemeanor, id.  In
EPA's statutes, felony provisions are found in Section
3008(d-e) of the Resource Conservation and Recovery Act,
42 U.S.C. §6928(d-e), and for second offenders under Section
309(c)(l) of the Clean Water Act, 33 U.S.C. S1319(c)(l),
and Section 113(c)(l)(A) of the Clean Air Act, 42 U.S.C.
§7413(c)(l)(A).

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                       -3-
     In Berger v. United States, 295 U.S. 78,  88 (1935),
the Court described the responsibilities of a prosecutor
appearing before a grand jury:

          (A)  prosecutor who presents a case to a grand
          jury has the obligation of preserving the fairness,
          impartiality, and lack of bias of this important
          governmental investigative body.  He can not
          inflame or otherwise improperly influence
          grand jurors against any person...;  and he
          must always remember that he is a representative
          not of an ordinary party to a controversy but
          of a sovereignty whose obligation to govern
          impartially is as compelling as its obligation
          to govern at all....

     The obligation placed on the prosecutor is shared by
all government personnel assigned to the investigation.

II.  THE OPERATION OF THE GRAND JURY

Backgroundt  Regular grand juries can be empanelled for
up to 18 months, see Rule 6(g), Federal Rules of Criminal
Procedure (FRCP).  In many districts, terms of regular
grand juries are far shorter.  "Special" grand juries--
normally empanelled to hear a particularly complex and
lengthy investigation—sit for a term of 18 months and
may be extended for an additional 18 months.  18 U.S.C.
§3331.

     Federal grand juries consist of not less than sixteen
nor more than twenty-three members.  Rule 6(a), FRCP.  The
grand juries are empanelled before the district court,
who will then appoint one member to be Foreman, and one
to be Deputy Foreman.  The Foreman has the power to administer
oaths to all witnesses, and signs all indictments.  Rule
6(c), FRCP.  An indictment may be found with the concurrence
of twelve or more jurors.  Rule 6(f), FRCP.  Sixteen
or more jurors must be present for the grand jury to
conduct business.  Thus, before beginning any session
the prosecutor will insure that at least sixteen grand
jurors are present.

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                      -4-
Authorized Persons Before the Grand Jury;  The only
persons allowed to be present at a session of the grand
jury are "attorney(s) for the government"; the witness
under examination; an interpreter if necessary; a
stenographer or operator of a recording device; and
the grand jurors.  Rule 6(d), FRCP.  The presence
of unauthorized persons before the grand jury is a per se
basis for dismissal of an indictment, without a demon-
stration of prejudice.  United States v. Phillips Petro-
leum, 435 F. Supp. 610 (D. Okl. 1977); United States v.~
Braniff Airways, Inc., 428 F. Supp. 579 (D. Tex..1977);
United States v. Echols, 413 F. Supp. 8 (D. La. 1975).
Adherence to the terms of Rule 6(d) is mandatory.

     In the context of Rule 6(d), the phrase "attorney
for the government" does not include EPA or other Federal
agency attorneys.  See Rule 54(c), FRCP. 2_/  See also.
In re Grand Jury Proceedings, 359 F. 2d 440, 443 (3d.
Cir. 1962)(FTC attorney); In re Grand Jury Investigations,
414 F. Supp. 476 (S.D.N.Y. 1976) (SEC attorney); United"
States v. General Electric, 209 F. Supp. 197, 202 (E.D.
Pa.1962)(TVA attorney).  Thus, unless a special appoint-
ment is made, 3_/ EPA attorneys will appear before the
grand jury only as witnesses, and only during those
sessions when their testimony is presented.
2/  Rule 54(c), FRCP, defines "attorney for the government,"
Tn pertinent part, as:

      ...the Attorney General, an authorized assistant
      of the Attorney General, a United States Attorney,
      an authorized assistant of the United States Attorney..

3_/  In those cases in which the particular expertise and
experience of an EPA attorney is considered necessary
to the successful investigation and prosecution of a
criminal case, that attorney can be appointed an authorized
assistant of the Attorney General pursuant to 28 U.S.C.
§515(a), or of the United States Attorney pursuant to
28 U.S.C. §543.  In either case, the EPA attorney would
meet  the definition of "attorney for the government"
found at Rule 54(c), FRCP.  Such appointments may only
be made at the request of the Justice Department attorney
overseeing the investigation.

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                     -5-
     At least two courts have held that a prosecutor
presenting evidence to a grand jury who also testifies
as a witness before that grand jury is an "unauthorized
person in the grand jury room" in violation of Rule
6(d).  United States v. Gold, 470 F. Supp. 1336, 1351
(N.D. 111. 1979); United States v. Treadway, 445 F.
Supp. 959 (N.D. Tex. 1978).In addition, this conduct
has been found to violate the ABA's Code of Professional
Responsibility.  United States v. Birdman, 602 F.2d 547,
551-555 (3d. Cir. 1979).Under no circumstances should
an EPA attorney appointed to act as a Special Assistant
United States Attorney testify before a grand jury to which
that attorney is also presenting evidence as a prosecutor.

The Statutory Recording Requirement:  As of August 1,
1979,"all proceedings (before a grand jury), except
when the grand jury is deliberating or voting" must
be recorded.  Rule 6(e)(l), FRCP.

     The precise meaning of this mandate has not been
clarified by case law; nor do we know—as yet—what
sanctions will flow from violations of this requirement.
In the absence of decided case law to the contrary, this
rule should be interpreted strictly.  Beyond the
exchange of pleasantries—i.e., personal greetings,
observations on the weather, etc.—EPA employees should
not engage in conversations with grand jurors unless
that coversation is being recorded as part of a formal
grand jury session.  If a grand juror asks a question
prior to or after a formal session, you should politely
advise the grand juror that it is not proper to respond
at that time, and request that the question be raised
again after a recorded session begins.

     In the case of an inadvertant breach of this rule,
you should immediately notify the prosecutor supervising
the investigation, who may in turn wish to ask that the
conversation be repeated on the record before the entire
grand jury.

The Indictment Process:  At the end of an investigation,
the prosecutor will ask a grand jury to vote on a re-
commended indictment.  The indictment itself will have been
drawn up in advance, and will be presented unsigned to
the grand jury for consideration.  Procedures on the

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                      -6-
manner of presentation will vary by district and the
nature of the case.  The recommended indictment will
normally be marked and introduced as a grand jury exhibit,
and the grand jury will be informed that all documents,
records and witness transcripts are available for review
if necessary.  The deliberations of the grand jury are
not recorded; in addition, no one is present during deliber-
ations except members of the grand jury itself.  If the
grand jury votes to indict, the indictment is signed
by the Foreman, as well as the United States Attorney,
and is returned to a judge in open court. 4/
                       •                  "^
III.  GRAND JURY SECRECY

     Confidentiality is often crucial to the success of
a criminal investigation.  In addition, the Agency has a
responsibility to protect the targets of criminal investi-
gations from the adverse publicity that can result from the
premature disclosure of a criminal inquiry.  UNDER NO
CIRCUMSTANCES SHOULD AGENCY OFFICIALS DISCUSS THE EXISTENCE
OF A CRIMINAL INVESTIGATION, EITHER WITHIN OR OUTSIDE
THE AGENCY, EXCEPT ON A NEED-TO-KNOW BASIS.  This rule
applies with equal force during EPA's dealings with
Federal, State and local officials.

     Given the provisions of Rule 6, FRCP, confidentiality
is particularly important during grand jury investigations.

The Rule and its Exceptions;  Rule 6(e)(2) of the Federal
Rules of Criminal Procedure establishes an overall bar to
the disclosure of "matters occurring before the grand
jury" except as in compliance with the terms of Rule
6(e).  Grand jury secrecy is of crucial importance to
the preservation of the grand jury as an investigative
agency.  Grand jury secrecy exists to encourage complete and
willing testimony by witnesses; to minimize the risk of
flight by prospective defendants; to safeguard the grand
jury from extraneous pressures and influences; and to avoid
prejudicial disclosures concerning investigative targets.
See United States v. Proctor and Gamble, 356 U.S. 677
(1958).A breach of grand jury secrecy is punishable by
contempt of court.

     Rule 6(e) of the Federal Rules of Criminal Procedure
establishes strict procedures to ensure the secrecy of
grand jury proceedings.  For purposes of this document,
we are concerned with the following portions of Rule
6(e):
4/  In appropriate circumstances the indictment can be
"sealed", i.e., kept secret, until some future date.  This
procedure is often used when the defendant is not in
custody and may flee.

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                       -7-

          (2) General Rule of Secrecy - A grand juror,
          an interpreter,  a stenographer,  an operator
          of a recording device,  a typist who transcribes
          recorded testimony, an attorney for the govern-
          ment, or any person to whom disclosure is made
          under paragraph (3) (A) (id.)  of this subdivision
          shall not disclose matters  occurring before the
          grand jury, except in accordance with this
          rule.  A knowing violation  of Rule 6 may be
          punished as a contempt of court.

          (3)  Exceptions.

          (A)  Disclosure otherwise prohibited by this
          rule of matters occurring before the grand
          jury, other than its deliberations and the
          vote of any grand juror, may be made to—

               (i)  an attorney for the government for
               use in the performance of such attorney's
               duty; and

               (ii)  such government  personnel as are
               deemed necessary by an attorney for the
               government to assist an attorney for the
               government in the performance of such
               attorney's duty to enforce Federal criminal"
               law.

          (B)  Any person to whom matters are disclosed
          under subparagraph (A)(ii)  of this paragraph
          shall not utilize that grand jury material for
          any purpose other than assisting the attorney
          for the government in the performance of such
          attorney's duty to enforce  Federal criminal
          law.  An attorney for the government shall
          promptly provide the district court, before
          which was empanelled the grand jury whose
          material has been so disclosed, with the names
          of the persons to whom such disclosure has been
          made.
(Emphasis supplied)

     In sum, the general rule of secrecy established
in Rule 6(e) has two exceptions of particular interest
to EPA personnel involved in grand jury investigations:
(1) disclosure to an "attorney for the government" (which
requires no judicial authorization) and (2) disclosure
to government personnel assisting the attorney for the
government in the enforcement of Federal criminal law
(which requires timely notification to the district
court supervising the grand jury investigation).

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                     -8-
     As was indicated earlier, EPA attorneys do not
fall automatically within the category of "attorney(s)
for the government."  Rule 54(c), FRCP.  Thus,  except in
those cases in which the Agency attorney is appointed
an authorized assistant of a Justice Department prosecutor
under 28 U.S.C. §§515(a) or 543, the first exception
is inapplicable to EPA employees.

     Of far greater significance within EPA's context
is Rule 6(e)(3)(A)(ii), which authorizes disclosure
to government personnel assisting an attorney for the
government in the enforcement of Federal criminal law.
For example, EPA technical personnel will frequently
be asked to review scientific documents received pursuant
to grand jury subpoena and to analyze them for the grand
jury.  Similarly, EPA attorneys familiar with Agency
regulations may be asXed to determine whether the facts
developed in a grand jury inquiry constitute violations
of specific regulatory programs.  Finally, EPA's criminal
investigators will normally be made agents of the grand
jury to serve subpoenas, receive and review grand jury
materials, and interview subpoenaed witnesses prior
to testimony.

     Decisions on the scope of disclosure to government
personnel under this exception are vested, under Rule
6(e), with the prosecutor supervising the grand jury
investigation.  The identity of these government personnel
must be disclosed to the court that empanelled the grand
jury.  There is no statutory obligation to give the
court prior notice of such disclosure, see In re Grand
Jury Proceedings (Larry Smith), 578 F. 2d 836 (3d. Cir.
1978); however^ prior notification is the preferable
practice where feasible.  Finally, the purpose of the
disclosure must be to assist in the enforcement of Federal
criminal law.  Rule 6(e)(3)(A)(ii).

     Rule 6(e)(3)(A)(ii) disclosures will be used with
restraint and will be limited to situations in which
they are necessary for the furtherance of the criminal
investigation.  Under no circumstances can information
disclosed under this provision be communicated—in any
form—to any Agency employee not specifically authorized
to receive this information under the provisions of Rule
6(e).  This would include, for example, even members
of EPA's Office of Criminal Enforcement and criminal
investigators hired in our field offices.  It would also

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                      -9-


include, of course, Congressional, State or local
officials interested in the matter under investigation.
The bar imposed by Rule 6(e) is total.

Disclosure of Grand Jury Materials to Agency Supervisors

     In the past, the question has arisen whether an
Agency employee assigned to a grand jury investigation
and authorized to review grand jury materials must there-
after cease all discussions of his or her work with
supervisory personnel.

      Strict confidentiality is required for "matters
occurring before the grand jury."  This phrase should
be read to include, at a minimum, the substance of grand
jury testimony and any transcripts or memoranda reflecting
that testimony; the substance of documents subpoenaed
by the grand jury; the identities of witnesses appearing
before the grand jury; and the identity of investigative
targets, corporate or individual, developed during the
grand jury investigation.

     On the other hand, grand jury secrecy does not
preclude necessary discussion within the Agency of
publicly-filed motions relating to the grand jury investigation
(i.e., motions to quash grand jury subpoenas); or the
discussion of legal issues arising during grand jury investigations,
if they can be discussed in the abstract, without reference
to evidence developed before the grand jury.  Of course,
where there is doubt about whether a matter is protected
by grand jury secrecy, the question should always be raised
with the "attorney for the government" overseeing the
investigation prior to disclosure.

     On occasion, when unexpected and significant Agency
resource commitments are required during the course of
a grand jury investigation, limited disclosure of grand jury
materials to EPA managers not actively involved in the case
may be appropriate.  However, such disclosure will be made
by, and with the prior approval of, the Justice Department

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                     -10-
attorney supervising the investigation; further, it will be
limited to the facts necessary for the supervisor to make an
intelligent decision on the use of his or her resources.
In addition, care must be taken to ensure that the manager
receiving this information is not supervising a simul-
taneous- civil, administrative or regulatory proceeding
involving any of the investigative targets.  Of course,
appropriate notification to the Court under Rule 6(e) must
occur at the time of the disclosure.

Disclosure of Grand Jury Materials in Parallel or Sub-
sequent Civil/Regulatory Proceedings;The grand jury's
sole legitimate investigative purpose is to determine
whether probable cause exists to believe that Federal
criminal law has been violated.  Thus, it has been held
that it is an abuse of the grand jury to continue presenting
evidence once a decision has been made not to seek an
indictment.  United States v. Proctor and Gamble Co.,
175 F. Supp. 198, 199 (D.N.J. 1959).  In a variation
of the same theme, the District Court for the Southern
District of New York has held that the government may not
use the grand jury to inquire into civil as well as
criminal liability:

          The grand jury's role is properly confined,
          and amply respected, when it is held empowered
          to conduct investigations that are in their
          inception exclusively criminal.  To hold other-
          wise—to confer court approval upon the kind
          of concurrent criminal and civil inquiries
          projected by the instant application— would
          expand the already awesome powers of the grand
          jury beyond tolerable limits.

United States v. Doe, 341 F. Supp. 1350, 1352 (S.N.D.Y.
1972) (emphasis supplied).

     These holdings do not mean that evidence acquired
by the grand jury in a good faith criminal investigation
can not subsequently be used in a civil action.  Rule
6(e)(3)(C)(i) establishes that disclosure of matters
before the grand jury may also be authorized by court order
when that disclosure is "preliminary to or in connection

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                       -11-
with a judicial proceeding." 5/

     Courts are split on the scope of this exception,
and disclosure will not, by any means, follow automati-
cally on the heels of a motion.  The government must
demonstrate three things to be entitled to a disclosure
motion:  First, that the grand jury investigation was
conducted to ascertain whether or not violations of
criminal law had occurred, and not as a subterfuge to
obtain grand jury records for a civil investigation
or proceedings, In re Grand Jury Subpoenas, April 1978,
581 F. 2d 1103, 1110 (4th Cir. 1978); second, that dis-
closure of grand jury records would be preliminary to a
judicial proceeding, Rule 6(e)(3)(i), FRCP; and third,
that there is either a "particularized need" for the
records, In re Grand Jury Investigation, Sells Engineering
Inc. , 642 F.2d 1184 (6th Cir. 1981) or that the records
are "rationally related" to the civil proceedings, In re
Grand Jury Subpoenas (Baltimore), 581 F.2d. 1103, 1110
(4th Cir. 1978); In re Grand Jury Proceedings (LTV) 583
F.2d 128 (5th Cir. 1978).

     Rule 6(e) motions will be made only with the author-
ization and assistance of the prosecutor who supervised
the grand jury investigation.

     To avoid both the appearance, as well as the potential,
that a grand jury investigation will be misused to accumulate
evidence for a noncriminal purpose, employees assigned to
work on or review materials accumulated in grand jury
investigations should have no responsibilities, either
staff or supervisory, on other simultaneous or subsequent
civil or regulatory proceedings involving the subject(s)
5_/  One court has observed, in this regard:

     Nothing said herein is meant to overlook the Supreme
     Court's realistic observation that evidence acquired
     in a legitimate grand jury inquiry may later be
     usable even though it has been concluded that no
     indictment should issue.  See United States v. Proctor
     and Gamble, 356 U.S. 677, 684 (1958).That is wholly
     different from the proposition that the inquiry may
     start out or continue with the explicit purpose of
     discovering evidence for civil claims.

    United States v. Doe, 341 F. Supp. 1350, 1352 (S.D.N.Y.
    1972).

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                       -12-
of the grand jury investigation.  Exceptions to this
general prophylactic rule may well be appropriate in
certain cases—as, for example, where the subject
matter of the grand jury investigation is unrelated
to the civil/regulatory matter.  However, exceptions
should not be made without prior discussions with the
Office of Criminal Enforcement, EPA Headquarters, and
the Justice Department prosecutor supervising the
investigation.

Media Inquiries Concerning Grand Jury Investigations;  EPA
personnel should never confirm the existence of an ongoing
grand jury investigation in response to press inquiries.
If pressed, questions should be referred to the Justice
Department or local United States Attorney.

IV.  CARE AND CUSTODY OF GRAND JURY MATERIALS

     This final section recommends procedures to be
employed by EPA personnel granted access to and custody
of grand jury materials during the course of a criminal
investigation--as, for example, when voluminous technical
documents are subpoenaed and transferred to EPA personnel
for review.  As a general rule, procedures for the care
and custody of these materials should first be discussed
with the Justice Department prosecutor. - If local rules--	
or procedures exist, they should be followed.  In the
absence of such specific local guidance, however, the
following procedures, if followed, will provide adequate
assurance against breaches of security and subsequent
allegations of grand jury abuse.

     1.  The identity of all Agency employees who will
     have access to grand jury materials should be included
     in a notice to the Court pursuant to Rule 6(e)(3)(B).
     If additional Agency personnel later prove necessary,
     these additional names should be provided to the
     Court in a timely fashion.

     2.  If grand jury materials are to leave the Federal
     district in which they are subpoenaed (for example,
     to be transported to a Regional office of review)
     consideration should be given—along with the
     prosecutor—to seeking the prior approval of the
     grand jury.  The anticipated transportation of
     materials from the district might also be included
     in the 6(e)(3)(B) notice to the Court.

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                     -13-
     3.  Grand jury materials should be transported
     personally where feasible (rather than by mail).
     If the postal system is used, the materials should
     be sent by certified mail, return receipt requested.

     4.  Grand jury materials should be totally segregated
     from the regular files of the Agency.  Where possible,
     a separate room should be used, since this allows
     both control of access and a private working space
     for personnel authorized to review these materials.
     Finally, the materials should be clearly labelled
     to avoid inadvertant disclosures.

     5.  Grand jury materials, once segregated, should
     be secured, either in locked file cabinets, behind
     locked doors, or both.  Access to the materials
     should thereafter be limited solely to personnel
     on the 6(e) list.

     6.  A system of accountability for grand jury
     materials should be established.  The system should
     allow the government to demonstrate, if challenged,
     the materials that were received, and those that
     have been returned.  Any indexing system that is
     workable for the prosecutor is acceptable.  One
     traditional system uses the number of the grand jury
     subpoena, followed by sequential numbers for the
     documents or exhibits received in response to that
     subpoena.
          N.B.  This indexing should occur before the
     substantive review begins and documents are taken
     out of their original order.  If this is done, it
     will always be possible to identify the order and
     date on which documents were received, and the
     subpoenas to which they responded.  It will also
     facilitate response to subsequent allegations that
     documents have been lost.

V. CONCLUSION

     This document will assist Agency personnel to perform
effectively and responsibly in the context of grand jury
investigations.  Agency employees assigned to grand jury
investigations should be thoroughly familiar with its
contents before they begin their work.  Questions should
be directed to the Office of Criminal Enforcement (FTS 382-
4543).

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r

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            Note on Regional Organization Structure
            of September 15, 1981
     Since the Agency issued this memorandum,  the Regional
structure has changed such that the Regional Counsels report
to the Regional Administrators.  The Office of General Counsel
also retains some authority over the Regional Counsels.  (See
memorandum entitled "Regional Counsel Reporting Relationship"
of August 3, 1983, GM-16.)

     It should also be noted that although this memorandum
generally discusses the role of the Regional Counsel, the
specific legal authority of the Regional Counsel is often
covered in the Agency's delegations of authority.  In those
cases where the Regional Counsels' authority is covered in
a delegation, the delegation is determinative of the Regional
Counsels' authority.

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            UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                        WASHINGTON, D.C. 20460
                                                        OFFICE Of
                                                LEGAL COUNSEL AND 6N*OBCEM6NT
MEMORANDUM
SUBJECT:  Reorganization of the Offices of Regional  Counsel
FROM:     Robert M. Perry, associate Administrator  for Legal  and
          Enforcement Counsel and General Counsel

TO:       Regional Administrators I-X.
          Regional Counsels 1-X
    INTRODUCTION.

Since September 15, 1981, when the Administrator authorized
the Regional reorganizations, nearly all Regions have  transferred
or detailed th-,.ir enforcement attorneys and support  staffs to
the Offices of Regional Counsel.• In most cases, former organi-
zations and positions remain intact.

This memorandum contains guidance on completing the  reorganization
process.  The guidance allows flexibility so that varying needs
among Regions may be met while at the same time providing for
basic organizational consistency.  Regional Counsels may choose
from among the four basic organizational structures  shown on
Tabs A,  B, C,  and D.  I have also attached standard  position
descriptions for each of the new positions to be established
in the Offices of Regional Counsel.  These position  descriptions
are attached as Tabs E, F, G, H, I and J.

As soon as the permanent SES Regional Counsel is in  place,
the Region should begin the process of fully implementing
this guidance.  Until then, other Regional Counsels  and
Acting Regional Counsels should take interim steps which are
consistent with this guidance, provided that, in each  case, the
concurrence of the Regional Administrator and my approval are
" rst obtained.  Such interim steps should not unduly  limit
    options available to the permanent SES Regional  Counsel.

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                                                      -2-
 '.I.  THE ADMINISTRATOR'S OBJECTIVES FOR THE REGIONAL
REORGANIZATIONS.

The Administrator'a objectives for the Regional reorganizations
are reflected in this guidance.  These objectives are stated
in her memorandum of September 15, 1981 (a copy of which is
attached as Tab K).  The following excerpts from that memorandum
apply to the reorganization of the Regional legal offices:

     Reorganization Objectives.  Regional organization
     decisions include consideration of the following
     objectives:

              - Clarifying accountability for regional
                programs.

             "- Facilitating communication links between
                related Headquarters and regional components.

              - Improving regional policy and management
                decision-making.

              - Placing functions in organizations where
                they can best be integrated with related
                activities.

              - Favoring fewer and larger organizations to
                avoid subsequent further consolidation and
                reorganization in a time of declining resources.
     .  .  . Major features of the authorized organization include
     the  following:

          1.  Enforcement functions of permit issuance and
     related compliance monitoring are assigned to the appropriate
     program divisions.  This includes issuance of notices of
     violation and administrative orders, after consulting with
     the  Office of Regional Counsel.  (Permit coordination
     functions and placement are optional.)

          2.  Legal work associated with Enforcement litigation
     and  current Regional Counsel functions will be performed
     in newly structured and expanded Offices of Regional
     Counsel reporting to the General Counsel with the following  ~
     provisions:

              a.  Regional Counsels will provide the Regional
     Administrator with legal advice and assistance for all
     program areas in an attorney client relationship.

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               b.  The Regional Administrator will con-
     tinue to initiate enforcement actions.  These
     actions will be based upon guidance from the
     Enforcement Counsel, Office of Legal and Enforcement
     Counsel, and with legal concurrence of the Regional
     Counsel.

               c«  As in the past the Regional Adminis-
     trator will participate in and concur with the
     General Counsel in selections, promotions, awards
     and disciplinary actions for Regional Counsels.
     Regional Adminis-trators will be a party to perfor-
     mance agreements for and will participate in the
     performance ratings of Regional Counsels by the
     General Counsel*

               d.  The Regional Administrator will also
     continue to manage the resources of the Office of
     Regional Counsel and will provide certain administrative
     support such as space allocations, processing of
     personnel actions, and the management of travel
     and training accounts.

III.  BASIC PRINCIPLES FOR REORGANIZATION OF THE OFFICES
OF REGIONAL COUNSEL.

I have established the following basic principles for the
reorganization of the Offices of Regional Counsel:

     A.  All Attorneys in the Offices of Regional Counsel.
 .iere are to be no series 905 attorneys in any other offices in
the Regions without my concurrence.  This is to ensure that
the Agency speaks with one legal voice.

     B.  The Attorney-Client Relationship.  All attorneys are
to serve program clients in the context of an attorney-client
relationship.  This applies no matter what activities the
attorneys are performing.  Although attorneys are free to
offer program and policy advice when asked to do so, it should
be recognized that program and policy decisions (and the conse-
quences of those decisions) are the responsibility of Regional
program managers.  Where there is a mixture of legal and policy
issues, attorneys and program managers are expected to work
collaboratively, with each party recognizing the professional
responsibilities of the other in seeking a joint resolution
of those issues.

     C.  Organization Along Media Lines.  As shown on the four
organizational structure options  attached to this memorandum,
every Office of Regional Counsel should be organized along media
lines, as opposed to functional lines.  This means that the attorneys
are to be grouped according to the different media areas which

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they serve (air, water, hazardous waste, etc.) and are to perform
both general legal work and enforcement legal work.  The media
iplits are to follow roughly the same media lines as in the
Office of General Counsel and in the Regions.  With my concurrence,
a Region nay elect to combine media areas in combinations
which are different from those found in the four options provided,
but in such a case the burden would be on the Region to show that
this would be consistent with the objectives of this memorandum.

IV.  HOW THE ORGANIZATIONAL STRUCTURE WOULD WORK.

     &•  The Regional Counsel.  The Regional Counsel reports
directly to the Associate Administrator for Legal and Enforcement
Counsel and General Counsel.  He serves as the principal legal
adviser to the Regional Administrator for all legal matters arising
within the Region.  Be has an attorney-client relationship with the
Regional Administrator and the Regional program managers.  The Office
of Legal and Enforcement Counsel provides nationally uniform guidance
to the Regional Counsel on the legal aspects of enforcement matters.

     B.  Deputy Regional Counsel and Enforcement Coordinator.
In certain cases, a Regional Counsel may establish a Deputy
Regional Counsel and Enforcement Coordinator position.  Generally,
this would be appropriate only in a Region with a large Office
of Regional Counsel staff (such as where the Office contains
formal branches).  The Deputy would perform enforcement coordination
functions and, therefore, the Region would not have a Senior
Associate Regional Counsel for Enforcement Coordination.
The Deputy would not serve as a team leader.  He would have
  ^nagement functions in addition to enforcement coordination.
  ne organizational options available to a Region with a
Deputy are the same as Options A, B, C and D, except that
the Senior Associate position would be deleted and a Deputy
position would be substituted.  A Regional Counsel considering
the establishment of a Deputy position should furnish justification
for the position in connection with his reorganization plan
to be submitted as provided in Section IX.  A position description
for the Deputy will be provided as soon as a request to
establish the position has been approved by me.  The grade
level of the Deputy position would be determined after an
analysis of the position by the Regional position classification
specialist.

     C.  The Associate Regional Counsels.  The Office will be
grouped into teams which are to handle all enforcement and
general legal matters arising within their assigned media
areas, as shown on the attached options.  Each media team
will have a team leader who is to be called an "Associate Regional
Counsel.*  This person will be the principal coordinator for
that media area and will be responsible for all matters arising
within that area.  This will ensure that Regional program managers
and others dealing with the Office of Regional Counsel will.
know who is responsible for each legal matter in the Region.
The grade level of each Associate Regional Counsel will be

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                                                       -5-
determined'after an analysis of his projected duties and respon-
sibilities by the Regional position classification specialist.
See the position description attached as Tab H.

       1.  Management of the Work of Staff Attorneys.  Each
Associate will be responsible for the work of the staff
attorneys working within his media area.  Under Options A and
B, each Associate will have a defined group of staff attorneys
assigned to work with hira.  Under Options C and 0, the Associate
will draw upon a pool of staff attorneys.  Individual attorneys
in the pool could at any given time be dividing their tine
between two different media.

       2.  Rotation of Associates.  The Associates will be expected
to rotate among media areas from time to time so as to broaden
their exposure and expertise.

       3.  Administrative Functions.  The Regional Counsel may
assign certain administrative functions to the Associate in
charge of grants, etc., as one of this Associate's "other duties,
as assigned."  Such functions could include:  administrative
management of the Office of Regional Counsel; preparation of
all documents needed for resource management within the Office,
including the annual program plans and budget submissions;
preparation and submission of required reports on Office
activities and accomplishments, including current information
for automated data systems (coordinating reports on enforce-
ment matters with the Deputy or the Senior Associate Regional
Counsel  for Enforcement Coordination); oversight of the annual
performance evaluation process for all staff members and preparation
  f documentation required for such process; responsibility for
  .nagement of the physical properties of the Office, including
-pace procurement and recommendations for allocation of space;
management of the process for recruiting and hiring attorneys,
interns and clerical personnel; and management of all timekeeping
systems.     t
             'i
       Since this Associate would normally handle most legal
matters  for the administrative offices of the Psgion (personnel,
financial management, etc.), assignment of these functions
would ensure close coordination between the Office of Regional
Counsel  and these offices.  This would ensure clear accountability
for these matters in a uniform manner throughout the Office of
Regional Counsel system and close coordination with the Grants,
Contracts and General Administration Division of the Office of
General Counsel.

     D.  The-Senior Associate Regional Counsel for Enforcement
Coordination.  In those Regions where there is no Deputy, one
of the Associate Regional Counsels (except, under Options
A and C, for the Associate in charge of grants, etc., who has
no enforcement responsibilities) will be designated the "Senior
Associate Regional Counsel for Enforcement Coordination."  Re
will be the enforcement coordinator for the Office and he will
also lead one of the media teams.  Several Regions suggested that
the Senior Associate should not lead a media team, but should only

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have coordinating functions.  However, coordination functions                 ,
alone will not svr port a high grade level and assigning other                 '
enforcement functa ns simply in order to support the grade
•/ould be inconsistent with my objective of holding team leaders
accountable for all enforcement activities in their respective
media areas.  Therefore, I have decided not to authorize the
establishment of a "floating" Senior Associate, that is, a
Senior Associate who is not also a media team leader.

     The grade level of the Senior Associate Regional Counsel
for Enforcement Coordination will be determined after an analysis
of his projected duties and responsibilities by the Regional
position classification specialist.  For this reason, it may
be desirable that the Senior Associate be assigned to lead the
media team with the most complex, difficult and nationally
significant workload in order to support a high grade level.
However, a Senior Associate may instead be assigned to lead a
media team with a less heavy workload where it appears that
this would also sustain the grade of the position or where grade
is not a controlling factor.  This decision should be based
upon the balancing of all relevant factors including the extent of
the actual workload involved in coordinating enforcement functions.
See the position descriptions attached as Tabs I and J.

       1.  The Reason for the "Senior Associate" Title.  In those
Regions with a Senior Associate, the title "Senior Associate
Regional Counsel for Enforcement Coordination" is preferable to the
title "Deputy Regional Counsel for Enforcement Coordination."  Since
the Senior Associate would be in charge of only one of the media
teams, it would be confusing to persons dealing with the Office
  £ he were called a "Deputy," since the commonly-understood
  otion of a "deputy" is that he is a supervisor at a level
which is between the senior manager and the operating staff.
Regional Counsels in those Regions would have a closer working
familiarity with the work of their Offices and not be cut off
by a separate organizational layer.

       2.  Enforcement Responsibilities of the Senior Associate.
The Senior Associate Regional Counsel for Enforcement Coordination
will be responsible for coordinating all enforcement activity
within the Office of Regional Counsel.  In addition to carrying
his own load of enforcement work, he will ensure that all enforce-
ment policy guidance from the Office of Legal and Enforcement Counsel
is received and distributed to the other attorneys and the program
offices, that the reporting system is kept current with accurate
data, that enforcement cases are assigned to the appropriate media
attorneys (and lead roles assigned where more than one medium
is involved), that Regional policy determinations are properly
staffed from a legal standpoint, and that the Office is generally
responsive to the enforcement needs of the Office of Legal and
Enforcement Counsel.  These enforcement responsibilities are
spelled out in the position descriptions attached as Tabs I
and J.

       3.  Acting as Regional Counsel.  The Senior Associate will
  •*. as the Regional Counsel in the absence of the Regional Counsel.

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                                                      -7-
     E.  Staff Attorney Positions.  Staff attorneys at the
GS-11 level will be called "General Attorneys."  Staff
attorneys at the GS-12 and GM-13 levels will be called
"Assistant Regional Counsels."

       1.  Grouping Staff Attorney in a Media Unit Arrangement;*
Options A and B provide that the staff attorneys will be grouped
in media units, each to be led by an Associate Regional Counsel
(except that one media unit will be led by the Senior Associate
Regional Counsel for Enforcement Coordination).  Although a staff
attorney will generally work only in the media area for which his
unit is responsible, he can, as needed, be assigned as lead
attorney in a matter involving two or more media in which he
has expertise.  For example, he can take the .lead on a case
which has both hazardous materials and air quality aspects.
He will also rotate anong media units, as discussed below.

       2.  Grouping Staff Attorneys in a Pool Arrangement.
Options C and 0 provide that a staff attorney will not be assigned
to a single media area, but will be permitted and encouraged
to divide his time between two different media at one time.
His work will be coordinated and directed by the Associates
(or Senior Associate) with responsibility for the given
media areas.  As a staff attorney develops expertise in one
media area, he can expand the scope of his workload to include
matters from a second media area.  Then, over time, he can
rotate into a third media area while dropping out of one of
the original areas.  Several Regional Counsels have already
tried this pool concept and have reported that it works well
and is highly favored by both supervisors and staff attorneys.

       3.  Multi-media. _Rotation Policy.  I want each Regional
Counsel to follow a policy of rotating all staff attorneys
through each of the different media areas.  Staff attorneys in
the unit arrangement will be encouraged to move from media
unit to media unit as needs of the Office and preferences of
the attorneys permit.  Staff attorneys in the pool arrangement
will obtain multi-media exposure as described above.  Associates
will be required to maintain careful records of media assignments
so as to ensure that no one is on the sane track for too long.
The form of Attorney Rotation Record to be used for this purpose
is attached as Tab L.  I believe that this policy will, over
time, provide all of our Regional attorneys with a broadly
based experience, thereby improving the quality of their legal
advice.

V.  THE BENEFITS OF THE MEDIA-ORIENTED LEGAL OFFICE.

The principal benefits which I expect to accrue from organizing
the Offices of Regional Counsel along media lines are:

     A.  One Source of Legal Advice:  One Legal Opinion.
There will no longer be two sets of attorneys involved in
and giving legal and other advice on different aspects of

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                                                      -8-
the same situation, a practice which has sometimes led to
conf-asion within the Agency and caused difficulty for regulated
parties and others in dealing with EPA.

     B.  Acting as "Counsel to the Situation."  Instead of
approaching a problem with an "enforcement" perspective or
a "general legal" perspective/ attorneys will be able to act aa
"counsel to the situation*"  This will encourage an attorney
to develop and apply a broadened perspective and thus improve
the quality of his overall legal advice.

     C.  Better Coordination of Litigation.  Where an enforcement
action spawns a counter-suit, counterclaim, or an appeal to
a Court of Appeals, thereby causing an enforcement case
to involve or become a defensive case, the came attorneys will
handle the matter as a "situation," thereby ensuring a proper
coordination of strategy and a balanced assessment of all legal
implications.

     D,  Better Teamwork With Regional Program Staffs and
Headquarters Attorneys.  The Regional program offices having
enforcement functions, the Office of General Counsel and the
Office of Enforcement Counsel are each organized along media
lines: it is clear that a media-oriented Office of Regional
Counsel will improve professional ties and working relationships
with all of these groups.  Program personnel will always know
who their lawyers are.  Attorneys are likely to.develop closer
working relationships with program staffs when the groups are
working together on many issues at the same time as part of a
+ eam.  The same can be said of professional relationships with
 sadquarters lawyers, who will get to know the Regional attorneys
jetter by sharing more working experiences with them.  Regional
attorneys will be available to assist program personnel in
developing the factual basis for enforcement actions, including
actual field work such as sampling, inspections, and other
types of compliance activities.  This will foster a better
understanding by the attorneys of the roles of their program
counterparts, thereby promoting closer teamwork.

     E.  Improved Legal Expertise of Attorneys.  In a functional
division, at any given time an attorney must spend his time
trying to keep up with a large number of different statutes
and regulations governing all the media served by that function.
In a media-oriented Office, the attorneys will be allowed to
concentrate on keeping up with legal developments in one or
at most two media areas at a time.  Attorneys become better
experts in an area when they are allowed to specialize in
that area and keep current on legal developments.  The need
for Agency attorneys to attain the greatest level of expertise
possible is incontrovertible.

     P.  Better Accountability for Legal Advice.  Under the
proposed system, it will be clear who is responsible
for all of* the legal advice in any given situation.

     G.  No Distinctions Among Groups of Attorneys.  I am
   .d that there are some Regional attorneys who have the

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                                                       -9-
 perception  that,  in the  past,  one group of attorneys may have
 seen  more highly  regarded and/or better treated than another.
 I  do  not know whether there is any basis for this  perception,
 but any alleged problem  will be eliminated by implementing
 this  guidance.

      H.  Maximum  Utilization of Attorney Resources.   Staff
 attorneys can easily be  shifted from one type of work to
 another as  workload and  priorities change.  This is  particularly
 true  under  the pool arrangement.  Further, the new system
 eliminates  redundancy and duplication of effort which
 existed under the past system; no longer will two  sets of
 attorneys be required to review matters, and the time and
 energy previously needed to coordinate among different sets
 of attorneys will now be available for additional  legal
 work.  Here are two major examples of how the new  arrangement
 will  improve efficiency  and coordination:

        1.   Superfund Site Issues.  One attorney should be given
 the legal lead for each  Superfund site.  This attorney will
 be responsible for providing legal advice to the program managers
 on all alternative legal strategies for handling that site
 so that all of the issues involved in deciding which course
 of action  (enforcement,  cooperative agreement, state action,
 etc.) will  be given a consistent legal analysis.  If enforcement
 actions are initiated, the same attorney will handle them.
 Conversely, if federal and state funds are to be used, the
'.Attorney will advise on  the cooperative agreements.   The lead
  ttorney will be  supported by the specialists in the various
 -iedia teams where additional skills are needed.

        2.   Eliminating Duplieatiye Review of SIP Revisions,
 Delegation  Packages and  Other Matters.  Whereas, in  the past,
 two sets of attorneys would review SIP revisions,  program
 delegations, etc., each  for different reasons, the new role
 of the staff attorney will be to review a state statute,
 regulation, etc., both from the point of view of its general
 compliance  with EPA requirements as well as for its  "enforce-
 ability."   This should save a considerable amount  of attorney
 time  otherwise spent on  duplicative reviews and coordination
 among reviewers.

 VI.   PROBLEMS WITH SEPARATION OF FUNCTIONS.

 In those rare instances  when the Office of Regional  Counsel
 might be called upon to  advise a decision-maker on a problem
 when  it is-also involved as an advocate for the Agency's official
 position, such as in an  adjudicatory hearing on a  permit
 appeal, it  may be necessary for the the Regional Counsel,
 after consultation with  the Office of General Counsel, to
 make  arrangements for separate attorney representation of
 the different interests.

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                                                       -10-
VII.  ENFORCEMENT.

     A.  Top Priority to Enforcement Work.  The Office of
Regional Counsel is expected to give top priority to enforcement
work, while at the came time carrying out its general legal
duties.

     B.  Establishing Lead Attorney Roles in Enforcement
Matters.  Whenever both the Office of Regional Counsel and
the Office of Enforcement Counsel are to become involved in
a particular enforcement litigation matter, a lead attorney
shall be assigned to manage and coordinate the litigation
activities according to the following principles:
                                              •
       1. Lead Attorney Role Defined.  Having the lead attorney
role means that the lead attorney shall generally manage the
Agency's participation in the conduct of the matter.  In
particular, he shall: (a) act as the liaison with the Department
of Justice and/or the U.S. Attorney on the matter; (b) coordinate
the development of the enforcement strategy and the preparation
of all documents; and (c) take the lead in negotiations with
opposing parties.

       2.  Basis for Assignments.  The lead attorney role
shall be assigned on the following basis:

         (a).  Regional Matters.  Normally, the Office of     	
Regional Counsel shall take the lead on matters arising in
 he Regions, except where the Regional Counsel and the
 .he appropriate supervisor within the Office of Enforcement
Counsel agree/ after conferring at an early point in the develop-
ment of the matter, that the matter is of overriding national
significance and that the lead role should be assigned to
an attorney in the Office of Enforcement Counsel.  In cases
where the Regional Counsel and the supervisor within the
Office of Enforcement Counsel are unable to agree as to
which level should be assigned the lead role, the matter
will be resolved by the Associate Administrator for Legal
and Enforcement Counsel and General Counsel.

         (b).  Enforcement/Defensive Matters: Appeals.  In
instances where enforcement litigation and defensive litigation
arise involving essentially the same parties and the same set
of circumstances, the Associate Administrator for Legal and
Enforcement Counsel and General Counsel shall determine the
allocation of roles (including, where deemed necessary, the
establishment of a lead attorney for the entire matter) so
as to ensure that both aspects of the matter are properly
represented and that the positions of the respective Offices
are well-coordinated.  Generally, the Office of General
Counsel (or the appropriate Office of Regional Counsel)
shall have the lead on all matters before Courts of Appeals,
     even though the lead on the natter was previously taken by

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                                                      -li-
the Office of Enforcement Counsel.  The Associate Administrator
for Legal and Enforcement Counsel and General Counsel may
make exceptions to this rule in the case of individual enforcement
programs.

       3.  Obligations to Other Attorneys.  The lead attorney
shall provide other Agency attorneys assigned to the matter with
adequate opportunities to contribute to the litigation effort,
including participation as supporting counsel in the development
of the litigation strategy« the preparation of legal documents,
and the conduct of negotiations with opposing parties.

VIII.  GENERAL LEGAL MATTERS? RELATIONSHIPS WITH OGC..

The reorganization will not change the working relationships
between the Office of General Counsel and the Offices of
Regional Counsel.  All existing lines of communication and
all existing procedures should continue to be used until
further notice.

IX.  STEPS TO TAJCE IN IMPLEMENTING THIS GUIDANCE.

     A.  Interim Steps.  As stated above, a Region should
take interim steps towards the final reorganization of the
Office of Regional Counsel before the new SES Regional Counsel
is in place.  Such steps may include such matters as selecting
the organizational option, making tentative media team leader
selections, and moving attorneys into media teams.  Specific
Bequests should be directed to me in writing by the incumbent
 egional Counsel or Acting Regional Counsel, together with a
orief explanation for the proposal.

     B.  Reorganization Plans.  When the permanent SES Regional
Counsel is in place, he should begin at once to prepare a
reorganization plan for the final implementation of this
guidance.  The plan must have the written concurrence of
the Regional Administrator.  It should include at least the
following:

       1.  An organization chart showing the structure of the
Office, based upon one of the four options attached to this
memorandum.  Larger Regions may establish sub-units within media
groups.  If official branches or sections are to be established,
they should be indicated on the chart.

       2.  A list of the personnel of the Office.*, showing their
current grade levels, titles and areas of responsibility.

       3.  A list of the new positions to be established,
together with a list of changes, if any, to be made in the
attached standard position descriptions.  The position
descriptions may be altered to fit unusual situations, but •
no such alteration may be made without my concurrence and

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                                                      -12-
consultation with the Headquarters Personnel Office.  Proposed %
changes in the position descriptions should be stated in the
reorganization plan and my approval of the plan will be my
concurrence with thase changes.

       4.  A brief description of the procedures to be
followed in selecting personnel to fill the newly-created
positionn.

       5.  A plan for meeting the needs of any personnel whose
existing grade levels and/or skills do not fit into the organi-
zational structure to be established under the reorganization.
Individual cases should be discussed with me during the preparation
of the reorganization plan.

       6.  A timetable for implementing the plan.

     C.  Submission of Reorganization Plans and Proposals for
Interim Steps.  £ac"\ SES Regional Counsel should submit a final
reorganization plan for my approval within three weeks after
the date of this memorandum or three weeks after the date
that he begins work in his new position, whichever is later.
In Regions where an SES Regional Counsel is not expected to
be in place by June 1, 1982, requests for approval of interim
steps should be submitted by that date.

     D.  Approval of Reorganization Plans and Proposals for
'nterim Steps.  I must approve reorganization plans and
proposals for interim steps before they are implemented. This
means that no new positions may be established or personnel
selections made prior to approval.
Questions on this g-jidance may be referred to Robert C. Thompson,
Associate General Counsel for Regional Coordination, at 382-4148.
For information and guidance on the legal issues arising out of
proposed personnel changes, contact Gerald H. Yamada at 755-0768.

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                                   GENERAL COUNSEL
                                         I
                                  Regional Gbunsel
                                ±
  Senior Associate Regional Counsel
  for Enforcement
  o Coordinates enforcement natters

  o Leads one of the media teams

  o Acts as Regional Counsel in
    Regional Counsel's absence
          o o o o o o o oooooooooo
          o                     o
                                            Regional Administrator
                                  Secretary
                      o o o o o o
                                o
Air Team
Solid Waste
and Emergency
Response Team
feter Team
Grants, Contracts
and General
Administration Team
     Leader:
     xriate Regional
    Jisel

Staff Attorneys;

 Assistant Regional
 Counsels and
 General Attorneys

Clerical
Hajor Functions:

o Air general
  legal natters

o Air enforce
  sent matters

o Air litigation
Team Leader;

 Associate Regional
 Counsel

Staff Attorneys;

 Assistant Regional
 Counsels and
 General Attorneys

Clerical
Major Functions:

O RCRA, Superfund,
  Besticides, Toxics:

   - General legal
     aattezs

   - Dif orceaent

   - Litigation
Team Leader:

 Associate Regional
 Connscl

Staff Attorneys;

 Assistant Regional
 Counsels and
 General Attorneys

Clerical
Major Functions:

o Water general
  legal natters

o Water enforce-
  ment matters

o Water litigation
Team Leader:
                                                                                      l
 Associate Regional
 Counsel

Staff Attorneys;

 Assistant Regional
 Counsels and
 General Attorneys

Clerical
Major Functions;

o Grants, etc.:

   - General legal
     natters

   - Litigation
           direct reporting;  o o o * coordination; - - - » attorney-client relationship

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                                 GENERAL COUNSEL
                                       1
                                Ragional Counsel
                              I
Senior Associate Regional Counsel
for Deforcement
o Coordinates enforcement matters
o Leads one of the media teams
o Acts as Regional Counsel in
  Regional Counsel's abser
              oooooooooooooo
              o                       o
    Air Team
    Team Leader:
     Associate Regional
     Counsel
    Staff Attorneys:
     Assistant Regional
     Counsels and
     General Attorneys
    Clerical
    Major Functions;
    o Air general
      legal natters
    o Air enforce-
      ment natters
    o Air litigation
                                Regional Administrator
                           Secretary
              o o o
oooooooo
              o
Solid  Waste
and Emergency
Response Team
Team Leader;
 Associate Regional
 Counsel
Staff Attorneys:
 Assistant Regional
 Counsels and
 General Attorneys
Clerical
Major Functions;
o RCRA, Superfundr
  Pesticides, Toxics:
   - General legal
     natters
   - Enforcement
   - Litigation
   Water Team
   Tteam Leader;
    Associate Regional
    Counsel
   Staff Attorneys;
    Assistant Regional
    Counsels and
    General Attorneys
   Clerical
   Major Functions;
   o Water, Grants, Contracts
     and General Administration
    — General legal matters
     - Enforcement (water)
     - Litigation
          direct reporting;  o o o « coordination;  - - - attorney-client relationship

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                                      GENERAL COUNSEL
                                            I
                                     Ragional Counsel
                                   1
    * Senior Associate Regional Counsel
     for Enforcement
     o* Coordinates enforcement natters

     o Leads one of the media teams

     o Acts as Regional Counsel in
       Regional Counsel's absence
             ooooooooooooooooo
                                                         Regional Administrator
                                                            Secretary
                                   o o o o o o
   Air Team
             Solid Waste
             and Emergency
             Response Team
Water Team
Grants, Contracts
and General Admin-
istration Team
   Team Leader;

    Associate Regional
    "-unsel
   Major Functions;

   o Air general
     legal natters

   o Air enforce-
     ment matters

   o Air litigation
    Staff Attorney Paol:
             Team Leader;

              Associate Regional
              Counsel
             Major Functions;

             O RCRA, Superfund,
               Pesticides* Toxics:

                • General legal
                  natters

                - Enforcement

                - Litigation
Team Leader;

 Associate Regional
 Counsel
Major Functions;

o Water general
  legal matters

o Water enforce-
  ment matters

o Water litigation
                                      Clerical
Team Leader:
 Associate Regional
Major Functions;

o Grants, etc.:

   • General legal
     natters

   - Litigation
     Assistant Regional Counsels
     and General Attorneys
KEY:
• direct reporting;  o o o « coordination;  - - - * attorney-client relationship

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       UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                 OFFICE OF GENERAL COUNSEL

                OFFICES OF REGIONAL COUNSEL
               BENCHMARK POSITION DESCRIPTION

                   GS-11 General Attorney
                     (General Attorney)
NOTE:  This position description has been reviewed by the
       Headquarters Office of Personnel and has been
       approved for use in the Offices of Regional
       Counsel.  In cases where the duties of the
       incumbent would not be sufficiently described
      . in this benchmark position description, the
       Regional Classification Specialist is authorized
       to make appropriate changes, after conferring
       the the Headquarters Office of Personnel and
       with the concurrence of the General Counsel.

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                       General Attorney
                          CS-905-11
I. Introduction.
     Serves as a General Attorney in the Office of Regional
Counsel.  Provides legal advice and assistance on legal
matters, including enforcement natters, arising in the Region.
Advice, assistance and recommendations are provided to the
Regional Counsel,, aenior attorneys and Regional program
managers.  Has an attorney-client relationship with all
Regional program managers for whom work is performed and
with the Office of Enforcement Counsel in Headquarters.

ZZ.  Major Duties and Responsibilities.

     At this level, the General Attorney will be assigned to work
on the least complex and routine matters which can be resolved
with standard research and analysis, and with a moderate
degree of expertise.  Examples of this includes  the review
of routine revisions on state implementation plans under the
Clean Air Act, participation in preparation of the less complex
notices of violation and administrative orders,- conduct of the
less complex administrative and judicial litigation, and
preparation of advice on routine and less complex legal
issues.
                                                                 •
     A. Legal Research and Problem Resolution.  Researches       •
     the legal questions which arise under regulations,       ;
     lawsuits, enforcement actions, executive orders and
     other administrative actions involving major Federal
     statutes affecting the Agency's programs, which may
     include such statutes as the Clean Water Act, the Clean
     Air Act, the Toxic Substances Control Act, the Safe
    . Drinking Water Act, the Resource Conservation and
    : Recovery Act, the National Environmental Policy Act,
     the Comprehensive Environmental Response, Compensation
     and Liability Act and the Federal Insecticide, Fungicide
     and Rodenticide Act (in each case as from time to time
     amended).                                                  -

     B.  General Legal Advice.  Acting through the Regional
     Counsel or an Associate Regional Counsel, provides the
     Regional Administrator, Deputy Regional Administrator
     and the Regional Divisions and Offices with general
     legal advice concerning those Regional matters which
     have been assigned.

     C.  Legal Advice on Enforcement Matters.  Provides
     legal advice on Regional enforcement matters.  Assists
     in the preparation of legal correspondence, notices
     of violation, administrative orders, litigation

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                     GS-905-11

referrals and other enforcement documents and reviews
such documents for legal sufficiency and consistency with
Agency legal interpretations and policy guidance.  Conducts
investigations into criminal matters in conjunction
with Agency criminal investigatory personnel and law
enforcement agencies*

D.  Legal Advice to Grant Programs.  Provides legal
advice to managers of EPA grant programs, including the
construction grants program administered under Title XX
of the Clean Water Act.  Advises on the eligibility for
Agency funding of cost items under Agency grants* including
cost overruns by contractors on Agency-funded projects.
Works closely with the Agency's Office of Inspector
General in resolving problems arising under audit activities
and investigations.  Drafts special grant conditions to
cover unusual or unique situations.  Assists state
attorneys in interpreting statutes and regulations
administered by the Agency, advising on the handling of
claims matters and generally serving the needs of programs
which have been delegated by the Agency to state agencies.
Prepares final Agency decisions on bid protests arising
under grantee procurement.  Conducts the Region's participa-
tion in grant appeal proceedings.

E.  Drafting of Determinations, Regulations, Notices, etc.
Drafts and reviews final Agency determinations* proposed    *
and final regulations, notices and other documents to   .   •
be published in the Federal Register, including Agency
actions on state air pollution laws, designations of
sole source aquifers under the Safe Drinking Water Act,
approvals and authorizations of state programs under
the Clean Water Act, the Clean Air Act, the Resource
Conservation and Recovery Act, the Federal Insecticide,
Fungicide and Rodenticide Act and other Federal environ-
mental statutes.

F.  Litigation Matters.  Coordinates defensive and enforce-
ment litigation in connection with specific Regional
matters arising under the statutes referred to above.      -
Assists in the conduct of discovery and prepares drafts
of motions, briefs, interrogatories, and other documents
in connection with cases in litigation.  Works closely
with attorneys in the Offices of General Counsel and
Enforcement Counsel at Headquarters and the Department
of Justice or U.S.  Attorneys.  Assists D.S. Attorneys
in seeking indictments in criminal matters and in prosecuting
such matters.  Coordinates with state attorneys general.
Represents the Region in administrative proceedings of
EPA and other agencies.

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                        General Attorney
                           GS-905-11
      G.   Negotiation and Informal Dispute  Resolution.   Represents
     •the Region in its dealings  with outside  parties,  including
      negotiation of bilateral agreements,  consent orders and
      judgements, and memoranda of understanding.   Represents
      the Region in negotiating the settlement of  disputed matters
      In  many cases, this avoids  protracted and expensive
      litigation and facilitates  expeditious administration
      of  Agency programs* •

      H.   Liaison with Offices of General Counsel  and Enforcement
      Counsel.Serves as liaison between the  Region and the
      Offices of General Counsel  and Enforcement Counsel to
      provide an effective channel of communication in  order
      to  assure that the Region obtains  legal  judgments from
      the Office of General  Counsel and  policy advice from
      the Office of Enforcement Counsel  and also to assure
      that, .such Offices are  able  to base such  judgments and
      such advice upon accurate perceptions of the pertinent
      facts and Regional program  objectives.

      X.   Other Duties.  Performs other  duties as  assigned.

 III.*   Supervisory Controls.

      The General Attorney reports to the Regional Counsel.        .
 The General Attorney has an attorney-client relationship      -   '
 with  Regional program managers and the  Office of  Enforcement
 Counsel  in Headquarters, Areas  of responsibility are  assigned
 by the Regional Counsel. Work assignments are made by the
 Regional Counsel or by senior attorneys who will  direct and
 coordinate the General Attorney's work  in  specific subject
 matter areas.  In some cases, work is performed at the request
 of Regional program managers. The work of the General Attorney
.is closely supervised by senior  attorneys  on  a case-by-case
 basis  to assure that a correct approach is made to research,
 analysis and formulation of legal advice.   Finished work is
 carefully'reviewed in almost all cases  to  assure  consistency
 with Agency policy, precedential effect and overall quality.

 XV. Qualifications.

     The General Attorney must have the equivalent of  a JO
 or LLB degree from an accredited law school and must be a
 member of the bar.  Other qualification requirements may be
 established by the Regional Counsel depending upon the needs
 of the Office.

-------
       UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                 OFFICE OF GENERAL COUNSEL

                OFFICES OF REGIONAL COUNSEL
               BENCHMARK POSITION DESCRIPTION

                   GS-12 General Attorney
                (Assistant Regional Counsel)
NOTE;  This position description has been reviewed by the
       Headquarters Office of Personnel and has been
       approved for use in the Offices of Regional
       Counsel.  In cases where the duties of the
       incumbent would not be sufficiently described
       in this benchmark position description* the
       Regional Classification Specialist is authorized
       to make appropriate changes, after conferring
       the the Headquarters Office of Personnel and
       with the concurrence of the General Counsel.

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                       General Attorney
                          GS-905-12
I.  Introduction.
     Serves as an Assistant Regional Counsel in the Office of
Regional Counsel.  Provides legal advice and assistance and
policy recommendations on legal matters, including enforcement
nattersr arising in the Region.  Advice, assistance and
recommendations are provided to the Regional Counsel* senior
attorneys and Regional program managers.  Has an attorney-client
relationship with all Regional program managers for whom
work is performed and with the Office of Enforcement Counsel
in Headquarters.

XI.  Major Duties and Responsibilities.

     At this level, the Assistant will be assigned to work on
a broad range of legal problems and issues affecting the Agency's
programs.  These matters require a thorough knowledge of appli-
cable laws and regulations, and may require extensive legal
research and analysis, and consideration of complicated
factual and policy issues.  Examples of these include:  the
review of a broad range of revisions of state implementation
plans under the Clean Air Act, preparation of notices of
violation and administrative orders which affect large amounts
of money, or involve a broad range of issues, and the conduct of
complicated administrative and judicial litigation.

     A. Legal Research and Problem Resolution.  Researches
     the legal questions which arise under regulations,
     lawsuits, enforcement actions, executive orders and
     other administrative actions involving major Federal
     statutes affecting the Agency's programs, which nay
     include such statutes as the Clean Water Act, the Clean
     Air Act, the Toxic Substances Control Act, the Safe :
     Drinking Water Act, the Resource Conservation and
     Recovery Act, the National Environmental Policy Act,
     the Comprehensive Environmental Response, Compensation
     and Liability Act and the Federal Insecticide, Fungicide
     and Rodenticide Act (in each case as from time to time
     amended).

     B.  General Legal Advice and Policy Recommendations.
     Acting through the Regional Counsel or an Associate
     Regional Counsel, provides the Regional Administrator,
     Deputy Regional Administrator and the Regional Divisions
     and Offices with general legal advice and policy recom-
     mendations concerning those Regional matters which have
     been assigned.

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                  General Attorney
                     GS-905-12

C«  Legal Advice and Policy Recommendations on Enforcement
Matters.  Provides legal advice and policy recommendations
on Regional enforcement matters.  Assists in the preparation
of major legal correspondence, notices of violation,
administrative orders, litigation referrals and other '
enforcement documents and reviews such documents for legal
sufficiency and consistency with Agency legal interpretations
and policy guidance.  Conducts investigations into criminal
matters in conjunction with Agency criminal investigatory
personnel and law enforcement agencies.

D.  Legal Advice and Policy Recommendations to Grant
Programs.Provides legal advice and policy recommendations
to managers of EPA grant programs, including the construction
grants program administered under Title II of the Clean
Water Act.  Advises on the eligibility for Agency funding
of cost items under Agency grants, including cost overruns
by contractors on Agency-funded projects.  Works closely
with the Agency's Office of Inspector General in resolving
problems arising under audit activities and investigations.
Drafts special grant conditions to cover unusual or
unique situations.  Assists state attorneys in inter-
preting statutes and regulations administered by the
Agency, advising on the handling of claims matters and
generally serving the needs of programs which have been
delegated by the Agency to state agencies.  Prepares         *
final Agency decisions on bid protests arising under
grantee procurement.  Conducts the Region's participation
in grant appeal proceedings.

E.  Drafting of Determinations, Regulations, Notices, etc.
Drafts and reviews final Agency determinations, proposed
and final regulations, notices and other documents to
be published in the Federal Register, including Agency
actions on state air pollution laws, designations of
sole source aquifers under the Safe Drinking Water Act,
approvals and authorizations of state programs under
the Clean Water Act, the Clean Air Act, the Resource
Conservation and Recovery Act, the Federal Insecticide,
Fungicide and Rodenticide Act and other Federal environ-
mental statutes.

F.  Litigation Matters.  Coordinates defensive and enforce-
ment litigation in connection with specific Regional
matters arising under the statutes referred to above.
Conducts discovery and prepares motions, briefs and
other litigation documents.  Appears before Federal
courts from time to time to conduct trials, hearings
and oral arguments.  Works closely with attorneys in the
Offices of General Counsel and Enforcement Counsel at
Headquarters and the Department of Justice or D.S.
Attorneys.  Assists U.S. Attorneys in seeking indictments

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                   General  Attorney
                      GS-905-12

 in  criminal  natters  and  in prosecuting  such  matters.
 Coordinates  with  state attorneys  general.  Represents
 the Region in  administrative  proceedings of  EPA and
 other agencies.

 G.   Negotiation and  Informal  Dispute  Resolution.
 Represents the Region in its  dealings with outside
 parties,  including negotiation of bilateral  agreements,
 consent orders and judgements, and memoranda of understanding.
 Represents the Region in negotiating  the settlement of
 disputed  matters.  In many cases, this  avoids protracted
 and expensive  litigation and  facilitates expeditious
 administration of Agency programs.

 B.   Representation of the  Region.  Represents the Region
 at  conferences and meetings held  with other  Federal
 departments  and agencies,  Congressional committees  and
.individual congressmen and senators,  the General Accounting
 Office, governors of states and staff offices of governors,
 state and local officials, representatives of private
 industry  and farm groups,  etc. and in this.capacity is
 required  to  give  expert  legal advice  with respect to
 many novel legal  situations and problems arising from
 the administration of Regional programs.  Prepares  and
 delivers  testimony to state legislative bodies in connection
 with their deliberations on assumption  of responsibilities   »
 for programs to be delegated  by the Agency.               •   '

 I.   Liaison  vith  Offices of General Counsel  and Enforcement
 Counsel.  Serves  as  liaison between the Region and  the
 Offices of General Counsel and Enforcement Counsel  to
 provide an effective channel  of communication in order
 to  assure that the Region  obtains legal judgments from
 the Office of  General Counsel and policy advice from
 the Office of  Enforcement  Counsel and also to assure.
 that such Offices are able to base such judgments and
 such advice  upon  accurate  perceptions of the pertinent
 facts and Regional program objectives.

 J.   Lead  Region Matters.   Serves  as a coordinator of
 one or more  subject  matter areas  of interest to the
 Offices of Regional  Counsel.   Maintains specialized
 expertise in such area[s]  and serves  as a consultant  to
 other attorneys in the Agency. May manage a task force
 of  Regional  attorneys in seeking  solutions to common
 legal problems or in preparing guidance documents,
 model agreements,  regulations, pleadings, etc.   In  this
 capacity, serves  as  the  liaison between the  Office  of
 General Counsel and  the  Offices of Regional  Counsel.
 Arranges  conference  calls, meetings and other means of
 exchanging information among  Regional attorneys.

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                       General Attorney
                          GS-905-12
     K.  Coordination of Work of Junior Attorneys.  Where the
     Assistant is responsible for coordinating the work of
     junior attorney-advisors, the Assistant reviews all
     major efforts to assure that written material is clear,
     precise and of high quality/ that work is completed on
     time, and that oral presentations, whether before courts
     or other public bodies, are of high quality.

     L.  Other Duties.  Performs other duties as assigned.

III.  Supervisory Controls.

     The Assistant Regional Counsel reports to the Regional
Counsel.  The Assistant has an attorney-client relationship
with Regional program managers and the Office of Enforcement
Counsel in Headquarters.  Areas of responsibility are assigned
by the Regional Counsel.  Work assignments are made by the
Regional Counsel or by senior attorneys who will direct and
coordinate the Assistant's work in specific subject matter
areas.  In some cases, work is performed at the request of
Regional program managers. Work will be discussed generally
with senior attorneys while in process and finished work
will generally be reviewed by senior attorneys to assure
consistency with Agency policy, precedential effect and
overall quality.

IV.  Qualifications.

     The Assistant must have the equivalent of a JD or
LLB degree from an accredited law school and must be a member
of the bar.  Other qualification requirements may be established
by the Regional Counsel depending upon the needs of the Office.

-------
       UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                 OFFICE OF GENERAL COUNSEL

                OFFICES OF .REGIONAL COUNSEL
               BENCHMARK POSITION DESCRIPTION

                   GM-13 General Attorney
                (Assistant Regional Counsel)
NOTE:  This position description has been reviewed by the
       Headquarters Office of Personnel and has been
       approved for use in the Offices of Regional
       Counsel.  In cases where the duties of the
       incumbent would not be sufficiently described
       in this benchmark position description, the
       Regional Classification Specialist is authorized
       to make appropriate changes, after conferring
       the the Headquarters Office of Personnel and
       with the concurrence of the General Counsel*

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             *«/
                       General Attorney
                          GM-905-13
I.  Introduction.
    Serves as an Assistant Regional Counsel in the Office of
Regional Counsel.  Provides legal advice and assistance and
policy recommendations on legal matters, including enforcement
matters, arising in the Region.  Advice, assistance and
recommendations are provided to the Regional Counsel, senior
attorneys and Regional program managers.  Has an attorney-client
relationship with all Regional program managers for whom
work is performed and with the Office of Enforcement Counsel
in Headquarters.

II.  Major Duties and Responsibilities.

     At this level, the Assistant will be assigned to work on
highly complex and unusual matters.  These matters require a
very high degree of expertise on the part of the Assistant and
may require extensive legal research, by more than one attorney
and on a number of subjects, and analysis of a wide variety
of issues, together with consideration of highly complicated
factual and policy issues in response to the specialized
needs of program clients.  Examples of these include:  the
review of highly complex and extremely unusual revisions of
state implementation plans under the Clean Air Act, participation *
in the preparation of highly complex and unusual notices of
violation and administrative orders, and the conduct of
highly complex administrative and judicial litigation.

     A. Legal Research and Problem Resolution.  Researches
     the legal questions which arise under regulations,
     lawsuits, enforcement actions, executive orders and
     other administrative actions involving major Federal
     'statutes affecting the Agency's programs, which may ,
     include such statutes as the Clean Water Act, the Clean
     Air Act, the Toxic Substances Control Act, the Safe
     Drinking Water Act, the Resource Conservation and
     Recovery Act, the National Environmental Policy Act,
     the Comprehensive Environmental Response, Compensation
     and Liability Act and the Federal Insecticide, Fungicide
     and Rodenticide Act (in each case as from time to time
     amended)•

     B.  General Legal Advice and Policy Recommendations.
     Acting through the Regional Counsel or an.Associate
     Regional Counsel, provides the Regional Administrator,
     Deputy Regional Administrator and the Regional Divisions
     and Offices with general legal advice and policy recom-
     mendations concerning those Regional matters which have
     been assigned*

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                  General Attorney
                     GM-905-13
C.  Legal Advice and Policy Recommendations on Enforcement
Hatters.  Provides legal advice and policy recommendations
on Regional enforcement matters.  Assists in the preparation
of major legal correspondence, notices of violation,
administrative orders, litigation referrals and other
enforcement documents and reviews such documents for
legal sufficiency and consistency with Agency legal
interpretations and policy guidance.  Conducts investi-
gations into criminal matters in conjunction with Agency
criminal investigatory personnel and law enforcement
agencies*

D.  Legal Advice and Policy Recommendations to Grant
Programs.  Provides legal advice and policy recommendations to
managers of EPA grant programs, including the construction
grants program administered under Title XI of the Clean
Water' Act.  Advises on the eligibility for Agency funding
of cost items under Agency grants, including cost overruns
by contractors on Agency-funded projects.  Works closely
with the Agency's Office of Inspector General in resolving
problems arising under audit activities and investigations.
Drafts special grant conditions to cover unusual or
unique situations.  Assists state attorneys in inter-
preting statutes and regulations administered by the
Agency, advising on the handling of claims matters and       •
generally serving the needs of programs which have been
delegated by the Agency to state agencies.  Prepares
final Agency decisions on bid protests arising under
grantee procurement.  Conducts the Region's participation
in grant appeal proceedings.

E.  Drafting of Determinations, Regulations, Notices, etc.
Drafts and reviews final Agency determinations, proposed
and final regulations, notices and other documents to
be published in the Federal Register, including Agency
actions on state air pollution laws, designations of
sole source aquifers under the Safe Drinking Water Act,     -
approvals and authorizations of state programs under
the Clean Water Act, the Clean Air Act, the Resource
Conservation and Recovery Act, the Federal Insecticide,
Fungicide and Rodenticide Act and other Federal environ-
mental statutes.

F.  Litigation Matters.  Coordinates defensive and enforce-
ment litigation in connection with specific Regional
matters arising under the statutes referred to above.
Conducts discovery and prepares motions, briefs and
other litigation documents.  Appears before Federal
courts from time to time to conduct trials, hearings

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                  General Attorney
                     ©1-905-13
and oral arguments.  Works closely with attorneys in the
Offices of General Counsel and Enforcement Counsel at
Headquarters and the Department of Justice or U.S.
Attorneys.  Assists D.S. Attorneys in seeking indictments
'in criminal matters and in prosecuting such matters.
Coordinates with state attorneys general.  Represents
the Region in administrative proceedings of EPA and
other agencies.

G.  Negotiation and Informal Dispute Resolution.
Represents the Region in its dealings with outside
partiesr including negotiation of bilateral agreements*
consent orders and judgements, and memoranda of understanding.
Represents the Region in negotiating the settlement of
disputed matters.  In many cases, this avoids protracted
and expensive litigation and facilitates expeditious
administration of Agency programs.

H.  Hearing Officer Duties.  Serves as hearing officer
in hearing and deciding matters brought before the
Agency and assists the Regional Administrator in preparing
formal administrative decisions.  Some of these decisions
(e.g. bid protest decisions arising under the construction
grants program) are final Agency action subject to
direct review in the Federal courts.  At the request of
the Regional Counsel, performs responsibilities which        '
the Administrator has delegated to the Regional Counsel,  '•
such as rendering decisions on confidentiality of business.
information under 40 C.F.R. Part 2, which decisions
also become final Agency action.

Z.  Representation of the Region.  Represents the Region
at conferences and meetings held with other Federal
departments and agencies, Congressional committees and
individual congressmen and senators, the General Accounting
Office, governors of states and staff offices of governors,
state and local officials, representatives of private
industry and farm groups, etc. and in this capacity is       '-'
required to give expert legal advice with respect to
many novel legal situations and problems arising from
the administration of Regional programs.  Prepares and
delivers testimony to state legislative bodies in connection
with their deliberations on assumption of responsibilities
for programs to be delegated by the Agency.

J.  Liaison with Offices of General Counsel and Enforcement
Counsel.Serves as liaison between the Region and the Offices
of General Counsel and Enforcement Counsel to provide an
effective channel of communication in order to assure that
the Region obtains legal judgments from the Office of General

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                       General Attorney
                          ©1-905-13

     Counsel and policy advice from the Office of Enforcement
     Counsel and also to assure that such Offices are able to
     base such judgments and such advice upon accurate perceptions
     of the pertinent facts and Regional program objectives.

     K.  Lead Region Matters.  Serves as a coordinator of one
     or more subject matter areas of interest to the Offices of
     Regional Counsel.  Maintains specialized expertise in
     such area[s] and serves as a .consultant to other attorneys
     in the Agency.  May manage a task force of Regional attorneys
     in seeking solutions to common legal problems or in preparing
     guidance documents, model agreements, regulations, pleadings,
     etc.  In this capacity, serves as the liaison between the
     Office of General Counsel and the Offices of Regional
     Counsel.  Arranges conference calls, meetings and other
     means of exchanging information among Regional attorneys.

     L.  Coordination of Work of Junior Attorneys.  Where the
     Assistant is responsible for coordinating the work of
     junior attorney-advisors, the Assistant reviews all
     major efforts to assure that written material is clear,
     precise and of high quality, that work is completed on
     time, and that oral presentations, whether before courts
     or other public bodies, are of high quality.

     M.  Other Duties.  Performs other duties as assigned.        .
                                                                  •
III.  Supervisory Controls.

     The Assistant Regional Counsel reports to the Regional
Counsel.  The Assistant has an attorney-client relationship
with Regional program managers and the Office of Enforcement
Counsel in Headquarters.  Areas of responsibility are assigned
by the Regional Counsel.  Work assignments are made by the
Regional Counsel or by senior attorneys who will direct and
.coordinate the Assistant's work in specific subject matter
areas.  In some cases, work is performed at the request of
Regional program managers.  Completed work is normally assumed
to be accurate with respect to legal citations, treatment of
facts, and other aspects of technical treatment.  However, all
written work is subject to review for soundness of approach and
argument, application of legal principles, and consistency
with governing policies, procedures, and regulations of the
Agency.

IV.  Qualifications.

     The Assistant must have the equivalent of a JD or LLB
degree from an accredited law school and must be a member of
the bar.  Other qualification requirements may be established
by the Regional Counsel depending upon the needs of the Office.

-------
       UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                 OFFICE OF GENERAL COUNSEL

                OFFICES OF REGIONAL COUNSEL
               BENCHMARK POSITION DESCRIPTION

                   GM-14 General Attorney*
                 (Associate Regional Counsel)
NOTE:  This position  description has been reviewed by the
       Headquarters Office of  Personnel and has been approved
       for use  in  the Offices  of Regional Counsel.  In
       cases  where the duties  of the incumbent would not be
       sufficiently described  in this benchmark position
       description, the Regional Classification Specialist
       is  authorized  to make appropriate changes, after
       conferring  the the Headquarters Office of  Personnel
       and with the concurrence of the General Counsel.

       Attached to this position description are  two cover .sheet*.
       The cover sheet indicating  that the position will be
       filled by a GM-13 ia  intended for use in those  situations
       where  the incumbent is  not  yet entitled to assume a
       GH-14  position due to inadequate time in grade.  When
       the time in grade requirements have been fulfilled,
       the incumbent  will be eligible  for promotion to the
       GM-14  level.   The second cover  sheet may be used at
       that point.
•Depending upon the organizational structure of the Office of
Regional Counsel, this position could be classified as that
of a Supervisory General Attorney.

-------
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-------
                      General Attorney*
                          GM-905-14
I.  Introduction.
     Serves as an Associate Regional Counsel in the Office of
Regional Counsel.  The Associate has responsibility for
providing legal advice and assistance and policy recommendations
to the Regional Counsel and Regional program managers in
major areas of responsibility.* The Associate coordinates
and directs the entire workload of"the Office in assigned
areas of responsibility, and is responsible for the work of
other attorneys in the Office who are assigned to work on
matters within such areas of responsibility.

II.  Major Duties and Responsibilities.

     At this level* the Associate will be responsible for all
legal aspects of an entire media area within the Region.  These
matters will involve a wide variety of highly complex and
unusual matters requiring extensive knowledge and a very
high degree of expertise as well as extensive legal research
and analysis, together with consideration of highly complicated
factual and policy issues.  The Associate will be the principal
attorney in the Region for interpreting for the Regional
Administrator and the Regional program managers a substantial
body of Agency regulations and defending these regulations
and Agency actions before Federal trial and appellate courts.
Matters assigned may have precedential effects, may have the
effect of substantially broadening or restricting the Agency's
activities and may have an important impact on major industries
in  the Region.  These natters  often involve substantial sums
of  money and often are rigorously contested by some of the
nation's most distinguished, capable and highly paid attorneys.
The Associate will direct and  coordinate the activities of junior
attorneys assigned to help carry out the specific elements of
the Associates duties and responsibilities.

     A. Legal Research and Problem Resolution.  Researches
     and resolves the legal questions which arise under all
     regulations, lawsuits, enforcement actions, executive       -
     orders and other administrative actions involving major
     Federal statutes affecting the Agency's programs, which
     may include  (depending upon the specific areas assigned
     by the Regional Counsel)  such statutes as the Clean
     Water Act, the Clean Air  Act, the Toxic Substances
     Control Act, the Safe Drinking Water Act, the Resource
     Conservation and Recovery Act* the National Environmental
     Policy Act,  the Comprehensive Environmental Response,
     Compensation and Liability Act and the Federal Insecticide,
     Fungicide and Rodenticide Act  (in each case as from
     time  to  time amended).   In areas assigned by the Regional
     Counsel,  is  the focal point within the Region for  resolution
 *  May be Supervisory General Attorney if appropriate.

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       UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                 OFFICE OF GENERAL COUNSEL

                OFFICES OF REGIONAL COUNSEL
               BENCHMARK POSITION DESCRIPTION

                   GM-14 General Attorney*
                 (Associate Regional Counsel)
NOTE:   This  position  description has been reviewed by the
        Headquarters Office  of  Personnel  and has been approved
        for use  in  the Offices  of Regional Counsel.  In
        cases where the duties  of the incumbent would not be
        sufficiently described  in this  benchmark position
        description, the Regional Classification Specialist
        is  authorized  to make appropriate changes, after
        conferring  the the Headquarters Office of  Personnel
        and with the concurrence of the General Counsel.

        Attached to this position description are  two cover sheets,
        The cover sheet indicating  that the position will be
        filled by a GM-13 is intended  for use in those  situations
        where the incumbent  is  not  yet  entitled to assume a
        GM-14 position due to inadequate  time in grade.  When
        the time in grade requirements  have been fulfilled,
        the incumbent  will be eligible  for promotion to the
        GM-14 level.   The second cover  sheet may be used at
        that  point.
*Depending upon the organizational structure of the Office of
Regional Counsel, this position could be classified as that
of a Supervisory General Attorney.

-------
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                  General Attorney
                     GM-905-14
of legal Issues arising under such statutes (except for
matters of national importance which require consultation
with the Offices of General Counsel or Enforcement
Counsel).

B.  General Legal Advice and PolicyRecommendations.
Either acting directly or through the Regional Counsel,
directly, provides the Regional Administrator, Deputy
Regional Administrator and the Regional Divisions and
Offices with general legal advice and (upon request)
policy recommendations concerning thosie Regional programs,
operations and activities in areas assigned.by the
Regional Counsel BO that their major decisions are made
with applicable legal considerations in mind*

C.  Legal Advice and Policy Recommendations on Enforcement
Matters.Provides legal advice and policy  recommendations
to  the Regional program managers responsible for enforcement
matters.  Assists in the preparation of major legal
correspondence, notices of violation, administrative
orders,  litigation referrals and other enforcement
documents and reviews such documents for legal sufficiency
and consistency with Agency legal interpretations and
policy guidance.  Is responsible for assuring that the
Agency's centralized data reporting systems are kept
current  with  information on Regional enforcement matters. "-
Conducts Investigations into criminal matters in conjunction
with agency criminal investigatory personnel and law
enforcement agencies.

D.  Legal'Advice and  Policy Recommendations  to Grant
Programs.   Provides  legal advice and policy recommendations
to  managers of Agency grant programs, including the
construction  grants  program administered under Title II
of  the Clean  Water Act.  Advises on the eligibility for
Agency  funding of cost  items under Agency  grants, including
cost overruns by  contractors on Agency-funded projects.      ;
Works  closely with the  Agency's Office of  Inspector
General  in  resolving problems  arising under audit activities
and investigations.  Drafts special grant  conditions to
cover  unusual or  unique situations.  Assists  state
attorneys in  interpreting statutes and regulations
administered  by  the  Agency, advising on the handling of
claims matters and generally serving the needs of programs
which  have  been  delegated by the Agency to state agencies.
 Prepares final Agency decisions on bid protests arising
 under  grantee procurement.  Conducts the Region's partici-
 pation in grant  appeal  proceedings.

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                  General Attorney
                     GM-905-14

E.  Drafting of Determinations, Regulations, Notices, etc.
Drafts and reviews final Agency determinations, proposed
and final regulations, notices and such other documents
to be published in the Federal Register, including
Agency actions on state air pollution plans, designations
of sole source aquifers under the Safe Drinking Water
Act, approvals and authorizations of state programs under
the Clean Water Act, the Clean Air Act, the Resource
Conservation and Recovery Act, the Federal Insecticide, .
Fungicide and Rodenticide Act and other Federal environ-
mental statutes.

F. Litigation Matters.  Manages and coordinates defensive
and enforcement litigation resulting from the Region's
activities under the statutes referred to above.  Conducts
discovery and prepares motions, briefs and other litigation
documents.  Appears before courts from time to time to
conduct trials, hearings and oral arguments.  Works
closely vith the Offices of Enforcement Counsel and
General Counsel at Headquarters and the Department of
Justice or U.S.  Attorneys.  Assists U.S. Attorneys in
seeking indictments in criminal matters and in prosecuting
such matters.  Coordinates vith state attorneys general.
Represents the Region in administrative proceedings of
EPA and other agencies.

Go  Negotiation and Informal Dispute Resolution.  Represents
the Region in its dealings with outside parties, including
negotiation of bilateral agreements, consent orders and
judgments, and memoranda of understanding.  Represents
the Region in negotiating the settlement of disputed
matters so as to avoid protracted and expensive litigation
and facilitate expeditious administration of Agency
.programs.

H.  Hearing Officer Duties.  Serves as hearing officer
in hearing and deciding matters brought before the
Agency and assists the Regional Administrator in preparing
formal administrative decisions.  Some of these decisions
(e.g. bid protest decisions arising under the construction
grants program) are final Agency action subject to
direct review in the Federal courts.  At the request of
the Regional Counsel, performs responsibilities which
the Administrator has delegated to the Regional Counsel,
such as rendering decisions on confidentiality of business
information under 40 C.F.R. Part 2, which decisions
also become final Agency action.

I.  Representation of the Region.  Represents the Region
at conferences and meetings held with other Federal
departments and agencies, Congressional committees and

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                  General Attorney
                     GM-905-14

Individual congressmen and senators, the General Accounting
Office, governors of states and staff offices of governors,
state and local officials, representatives of private^
industry and farm groups, etc. and in this capacity is'
required to give expert legal advice with respect to
many novel legal situations and problems arising from
the administration of Regional programs.  Prepares and
delivers advice and testimony to state legislative bodies
in connection with their deliberations on assumption of
responsibilities for -programs to be delegated by the
Agency.

J.  Liaison with Offices of General Counsel and Enforcement
Counsel.  Serves as liaison between the Region and the
Offices of General Counsel and Enforcement Counsel to
provide an effective channel of communication in order
to assure that the Region obtains legal judgments from
the Office of General Counsel and policy advice from
the Office of Enforcement Counsel and also to assure
that such Offices are able to base such judgments and
such advice upon accurate perceptions of the pertinent
facts and Regional program objectives.

K.  Coordinating and Directing Legal Work.  Coordinates
and directs the work of one or more junior attorney-
advisors.  Makes day-to-day work assignments and reviews
all major efforts of such attorney-advisors.  The review
functions include ensuring that (1) written material is
clear, precise, and of high quality, (2) work is completed
on time, (3) prompt advice is provided to the Regional
managers of programs within assigned areas, and
(4) oral presentations, whether before courts or other
public bodies, are of high quality.  Participates in
the recruiting and hiring of attorneys, and provides
attorney-advisors under supervision with opportunities
for professional growth through work experience and
training.  Assists the Regional Counsel in conducting
performance evaluations of junior attorney-advisors.

L.  Lead Region Matters.  Serves as a national legal
expert in one or more subject matter areas of interest
to the Offices of Regional Counsel.  Maintains specialized
expertise in such area[s] and serves as a consultant to
other attorneys in the Agency.  May. manage a task force
of Regional attorneys in seeking solutions to common
legal problems or in preparing guidance documents,
model agreements, regulations, pleadings, etc.  In this
capacity, serves as the liaison between the Office of
General Counsel and the Offices of Regional Counsel.
Arranges conference calls, meetings and other means of
exchanging information among Regional attorneys.

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                       General Attorney
                          GM-905-14
     Mo  Other Duties.  Performs other duties as assigned.

III.  Supervisory Controls.

     The Associate reports to the Regional Counsel and
has an attorney-client relationship with all Regional program
managers for whom work is performed and with the Office of
Enforcement at Headquarters.  Areas of responsibility are
assigned by the Regional Counsel, and within those areas of
responsibility the Associate has wide latitude in prioritizing
workload, directing and coordinating the efforts of staff
members/ conducting research, preparing documents and exercising
judgment and initiative in completing assignments and making
legal judgments and policy recommendations.  Legal advice,
policy recommendations and advocacy during adversarial pro-
ceedings are normally considered expert.  Within assigned
areas of responsibility, the Associate accepts work requests
directly from Regional program managers.  The Associate is
expected to represent the Regional Counsel from time to tine
in areas of assigned responsibility, although consultation
and discussion with the Regional Counsel is required when
necessary in connection with major legal judgments or policy
recommendations.  Completed work is reviewable for consistency
with Agency policy, precedential effect and overall quality.
The Associate is expected to rotate areas of assigned responsi-
bility with other Associates within the Office of Regional
Counsel from time to time.  The Regional Counsel is to be
consulted generally on matters arising in the course of
coordinating and directing the work of junior attorneys who
work in the assigned areas of responsibility.

IV.  Qualifications,

     The Associate must have the equivalent of a JD or LLB
degree from an accredited law school and be a member of the
bar.  Other qualifications requirements may be established
by the Regional Counsel, depending upon the needs of the
Office.

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                                                            TAB I
        UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                  OFFICE OF GENERAL COUNSEL

                 OFFICES OF REGIONAL COUNSEL
                BENCHMARK POSITION DESCRIPTION

                    GM-14 General Attorney*
        (Senior Associate Regional Counsel for Enforcement)
 NOTE:  This position description has been reviewed by the
        Headquarters Office of Personnel and has been approved
        for use in the Offices of Regional Counsel.  In
        cases where the duties of the incumbent would not be
        sufficiently described in this benchmark position
        description, the Regional Classification Specialist
        is authorized to make appropriate changes,  after
        conferring the the Headquarters Office of Personnel
        and with the concurrence of the General Counsel.
                                                                      *
                                                                     ^
        Attached to this position description are two cover sheets.\ ~'
        The cover sheet indicating that the position will be
        filled by a GM-13 is intended for use in those situations
        where the incumbent is not yet entitled to assume a
        GM-14 position due to inadequate time in grade.  When
        the time in grade requirements have been fulfilled,
        the incumbent will be eligible for promotion to the
        GM-14 level.  The second cover sheet nay-be used at
        that point.

•Depending upon the organizational structure of the Office of
Regional Counsel, this position could be classified as that
of a Supervisory General Attorney.

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               POSITION DESCRIPTION
                                                    u OUTT LOCATION
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POSITION DESCRIPTION
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                      General Attorney*
                          GM-905-14
I.  Introduction*
     Serves as the Senior Associate Regional Counsel for En-
forcement in the Office of Regional Counsel.  The Senior
Associate has responsibility for providing legal advice and
assistance and policy recommendations to the Regional Counsel
and Regional program managers in major areas of responsibility,
including coordination of all enforcement activities within
the Office.  The Senior Associate coordinates and directs
the entire workload of the Office in assigned areas of respon-
sibility and is responsible for the work of other attorneys
in the Office who are assigned to work on matters within
such areas of responsibility.  The Senior Associate acts as
the Regional Counsel when the Regional Counsel is out of the
office.

II.  Major Duties and Responsibilities.

     At this level, the Senior Associate will be responsible
for all legal aspects of an entire media area within the
Region, together with coordination of all enforcement activities
of the Office.  These matters will involve a wide variety of
highly complex and unusual matters requiring extensive knowledge
and a very high degree of expertise as well as extensive
legal research and analysis, together with consideration of
highly complicated factual and policy issues.  The Senior      '
Associate will be the principal attorney in the Region for
interpreting for the Regional Administrator and the Regional
program managers a substantial body of Agency regulations
and defending these regulations and Agency actions before
Federal trial and appellate courts.  Hatters assigned may
have precedential effects, may have the effect of substantially
broadening or restricting the Agency's activities and may
have an important impact on major industries in the Region.
These matters often involve substantial sums of money and
often are rigorously contested by some of the nation's most
distinguished, capable and highly paid attorneys.  The Senior
Associate will direct and coordinate the activities of junior
attorneys assigned to help carry out the specific elements of
the Senior Associates duties and responsibilities.

     A.  Coordination of Enforcement Hatters.

          1.  Expertise in Enforcement Hatters.  Develops and
          maintains expertise in all Agency enforcement
          policies, including guidance on prioritization of
          enforcement actions, development of enforcement
          cases, preparation of administrative letters and
          orders, preparation of litigation referral packages,
          management of litigation matters, negotiation and
*  May be Supervisory General Attorney if appropriate.

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            General Attorney
                GM-905-14
settlement of case, etc.

2.  Liaison with the Office of Enforcement Counsel*
Acts as the Region's principal liaison attorney
with the Office of Enforcement Counsel.  Receives
guidance from the Office'of Enforcement Counsel
and transmits it to the other attorneys in the
Office of Regional Counsel.  Keeps the Office of
Enforcement Counsel informed on Regional matters,
as needed.  Attends briefings and training sessions
as needed.

3.  Liaison with other Legal Offices.  Acts as
the liaison with other Offices of Regional Counsel
on the development of enforcement policies and
procedures in connection with lead Region efforts.
Acts as liaison with the Department of Justice,
the affected U.S.  Attorneys and the Attorneys
General of states within the Region on overall
enforcement policy and procedural matters.

4.  Development of Regional Enforcement Policies
and Procedures.  Assists Regional program managers
in developing Regional enforcement policies and
procedures and reviews such policies and procedures
for consistency with national policies and procedures.
This work is done in coordination with the Associate
Regional Counsels for the other major areas of
responsibility within the Office of Regional Counsel.

5.  Coordination of Enforcement Matters in Office
of Regional Counsel.Is responsible for informing
the other Associate Regional Counsels of developments
in enforcement policy.  Coordinates legal work
on enforcement matters being handled by the Office
of Regional Counsel so as to assure that all
enforcement activities are consistent with national
policies and procedures.  Maintains files on
current enforcement policies.

6.  Multi-media Enforcement Case Assignments.
Reviews enforcement matters involving more than
one major area of responsibility and makes recom-
mendations to the Regional Counsel as to which
Associate Regional Counsel should be given the
lead responsibility for handling the matter.
Reviews the handling of multi-media enforcement
matters so as to assure adequate coordination
within the Office.

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                        -3-
                 General Attorney
                     (24-905-14
     7.  Review of Resources Available for. Enforcement'
     Legal Services.Periodically reviews the allocation
     of resources for enforcement matters within the
     Office of Regional Counsel and makes recommendations
     to the Re.gional Counsel for obtaining adequate
     resources to meet the requirements of the Region's
     enforcement efforts.

     8.  Coordination of Criminal Investigators.  Coordinates
     the work of any criminal investigatory personnel who
     are assigned to the Office.  Ensures that such personnel
     attend to the highest priority matters in the Region,
     that they are assigned staff attorneys to work with
     them to assist in proper case development, and that
     they properly coordinate their activities with the
     Office of Inspector General.

B.  Acting Regional Counsel Duties.  Acts as the Regional
Counsel when the Regional Counsel is out of the Office.

C. Legal Research and Problem Resolution.  Researches
and resolves the legal questions which arise under all
regulations, lawsuits, enforcement actions, executive
orders and other administrative actions involving major      "
Federal statutes affecting..the Agency's programs, which
may include (depending upon the specific areas assigned
by the Regional Counsel) such statutes as the Clean
Water Act, the Clean Air Act, the Toxic Substances
Control Act, the Safe Drinking Water Act, the Resource
Conservation and Recovery Act, the National Environmental
Policy Act, the Comprehensive Environmental Response,
Compensation and Liability Act and the Federal Insecticide,
Fungicide and Rodenticide Act (in each case as from :
time to time amended).  In areas assigned by the Regional
Counsel, is the focal point within the Region for resolution
of legal issues arising under such statutes (except for      :
matters of national importance which require consultation
with the Offices of General Counsel or Enforcement
Counsel).

D.  General Legal Advice and Policy Recommendations.
Either acting directly or through the Regional Counsel,
directly, provides the Regional Administrator, Deputy
Regional Administrator and the Regional Divisions and
Offices with general legal advice and (upon request)
policy recommendations concerning those Regional programs,
operations and activities in areas assigned by the
Regional Counsel so that their major decisions are made
with applicable legal considerations in mind.

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                  General Attorney
                     GM-905-14
E.  Legal Advice and Policy Recommendations on Enforcement
Hatters.Provides legal advice and policy recommendations
to the Regional program managers responsible for enforcement
matters.  Assists in the preparation of major legal
correspondence, notices of violation, administrative
orders, litigation referrals and other enforcement
documents and reviews such documents for legal sufficiency
and consistency with Agency legal interpretations and
policy guidance*  Is responsible for assuring that the
Agency's centralized data reporting systems are kept
current with information on Regional enforcement matters.
Conducts investigations into criminal natters in conjunction
with agency criminal investigatory personnel and law
enforcement agencies.

F. Legal Advice and Policy Recommendations to Grant
Programs.Provides legal advice and policy recommendations
to managers of Agency grant programs, including the
construction grants program administered under Title XX
of the Clean Water Act.  Advises on the eligibility for
Agency funding of cost items under Agency grants, including
cost overruns by contractors on Agency-funded projects.
Works closely with the Agency's Office of Inspector
General in resolving problems arising under audit activities
and investigations.  Drafts special grant conditions to
cover unusual or unique situations.  Assists state
attorneys in interpreting statutes and regulations
administered by the Agency, advising on the handling of
claims matters and generally serving the needs of programs
which have been delegated by the Agency to state agencies.
Prepares final Agency decisions on bid protests arising
under grantee procurement.  Conducts the Region's partici-
pation in grant appeal proceedings.

G.  Drafting of Determinations, Regulations, Notices, etc.
Drafts and reviews final Agency determinations, proposed
and final regulations, notices and such other documents     :
to be published in the Federal Register, including
Agency actions on state air pollution plans, designations
of sole source aquifers under the Safe Drinking Water
Act, approvals and authorizations of state programs under
the Clean Water Act, the Clean Air Act, the Resource
Conservation and Recovery Act, the Federal Insecticide,
Fungicide and Rodenticide Act and other Federal environ-
mental statutes.

E. Litigation Matters.  Manages and coordinates defensive
and enforcement litigation resulting from the Region's
activities under the statutes referred to above.  Conducts
discovery and prepares motions, briefs and other litigation
documents.  Appears before courts from time to time to

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                  General Attorney
                     GM-905-14
conduct trials, hearings and oral arguments.  Works
closely with the Offices of Enforcement Counsel and
General Counsel at Beadguarters and the Department of
Justice or U.S.  Attorneys.  Assists U.S. Attorneys in
seeking indictments in criminal matters and in prosecuting
such natters.  Coordinates with state attorneys general.
Represents the Region in administrative proceedings of
EPA and other agencies.

X,  Negotiation and Informal Dispute Resolution.  Represents
the Region in its dealings with outside parties, including
negotiation of bilateral agreements, consent orders and
judgments, and memoranda of understanding.  Represents
the Region in negotiating the settlement of disputed
matters so as to avoid protracted and expensive litigation
and facilitate expeditious administration of Agency
programs.

J.  Hearing Officer Duties.  Serves as hearing officer
in hearing and deciding matters brought before the
Agency and assists the Regional Administrator in preparing
formal administrative decisions.  Some of these decisions
(e.g. bid protest decisions arising under the construction
grants program) are final Agency action subject to
direct review in the Federal courts.  At the request of
the Regional Counsel, performs responsibilities which
the Administrator has delegated to the Regional Counsel,
such as rendering decisions on confidentiality of business
information under 40 C.F.R. Part 2, which decisions
also become final Agency action.

K.  Representation of the Region.  Represents the Region
at conferences and meetings held with other Federal
departments and agencies, Congressional committees and
individual congressmen and senators, the General Accounting
Office, governors of states and staff offices of governors,
state and local officials, representatives of private       '
industry and farm groups, etc. and in this capacity is
required to give expert legal advice with respect to
many novel legal situations and problems arising from
the administration of Regional programs.  Prepares and
delivers advice and testimony to state legislative bodies
in connection with their deliberations on assumption of
responsibilities for programs to be delegated by the
Agency.

L.  Liaison with Offices of General Counsel and Enforcement
Counsel.Serves as liaison between the Region and the
Offices of General Counsel and Enforcement Counsel to
provide an effective channel of communication in order
to assure that the Region obtains legal judgments from

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                       General Attorney
                          GM-905-14
     the Office of General Counsel and policy advice from  •
     the Office of Enforcement Counsel and also to assure
     that such Offices ire able to base such judgments and
     such advice upon accurate perceptions of the pertinent
     facts and Regional program objectives.

     M,  Coordinating and Directing Legal Work.  Coordinates
     and directs the work of one or more junior attorney-
     advisors.  Makes day-to-day work assignments and reviews
     all major efforts of such attorney-advisors.  The review
     functions include ensuring that (1) written material is
     clear, precise, and of high quality, (2) work is completed
     on time, (3) prompt advice is provided to the Regional
     managers of programs within assigned areas, and
     (4) oral presentations, whether before courts or other
     public bodies, are of high quality.  Participates in
     the recruiting and hiring of attorneys, and provides
     attorney-advisors under supervision with opportunities
     for professional growth through work experience and
     training.  Assists the Regional Counsel in conducting
     performance evaluations of junior attorney-advisors.

     M.  Lead Region Matters.  Serves as a national legal
     expert in one or more subject matter areas of interest
     to the Offices of Regional Counsel.  Maintains specialized.
     expertise in such area[s] and serves as a consultant to
     other attorneys in the Agency.  May manage a task force
     of Regional attorneys in seeking solutions to common
     legal problems or in preparing guidance documents,
     model agreements, regulations, pleadings, etc.  In this
     capacity, serves as the liaison between the Office of
     .General Counsel and the Offices of Regional Counsel.
     Arranges conference calls, meetings and other means of
     exchanging information among Regional attorneys.

     0.  Other Duties.  Performs other duties as assigned.

III.  Supervisory Controls.

     The Senior Associate reports to the Regional Counsel and
has an attorney-client relationship with all Regional program
managers for whom work is performed and with the Office of
Enforcement at Beadquarters.  Areas of responsibility are
assigned by the Regional Counsel, and within those areas of
responsibility the Senior Associate has wide latitude in prior-
itizing workload, directing and coordinating the efforts of
staff members, conducting research, preparing documents and
exercising judgment and initiative in completing assignments
and making legal judgments and policy recommendations.
Legal advice, policy recommendations and advocacy during
adversarial proceedings are normally considered expert.

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                       General Attorney
                          GM-905-14
Within assigned areas of responsibility, the Senior Associate
accepts work requests directly from Regional program managers.
The Senior Associate is expected to act as the Regional Counsel
when the Regional Counsel is out of the office.  The Senior
Associate is also expected to represent the Regional Counsel
from time to time in areas of assigned responsibility, although
consultation and discussion with the Regional Counsel is
required when necessary in connection with major legal judgments
or policy recommendations.  Completed work is reviewable for
consistency with Agency policy, precedential effect and
overall quality.  The Senior Associate is expected to rotate
areas of assigned responsibility with other Senior Associates
within the Office of Regional Counsel from time to time.
The Regional Counsel is to be consulted generally on matters
arising in the course of coordinating and directing the work
of junior attorneys who work in the assigned areas of respon-
sibility.

IV.  Qualifications.

     The Senior Associate must have the equivalent of a JD or LLB
degree from an accredited law school and be a member of the
bar.  Other qualifications requirements may be established
by the Regional Counsel, depending upon the needs of the
Office.

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                                                            TAB J
        UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                  OFFICE OF GENERAL COUNSEL

                 OFFICES OF REGIONAL COUNSEL
                BENCHMARK POSITION DESCRIPTION

                    GM-15 General Attorney*
     (Senior Associate Regional Counsel for Enforcement)
 NOTE:  This position description has been reviewed by the
        Headquarters Office of Personnel and has been approved
        for use in the Offices of Regional Counsel.  Zn
        cases where the duties of the incumbent would not be
        sufficiently described in this benchmark position
        description, the Regional Classification Specialist
        is authorized to make appropriate changes,  after
        conferring the the Headquarters Office of Personnel
        and with the concurrence of the General Counsel.

        Attached to this position description are two cover sheets
        The cover sheet indicating that the position will be
        filled by a GM-14 is intended for use in those situations
        where the incumbent is not yet entitled to assume a
        GM-14 position due to inadequate time in grade.  When
        the time in grade requirements have been fulfilled,
        the incumbent will be eligible for promotion to the
        GM-15 level.  The second cover sheet may be used at
        that point.
•Depending upon the organizational structure of the Office of
Regional Counsel, this position could be classified as that
of a Supervisory General Attorney.  	

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              POSITION DESCRIPTION
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POSITION DESCRIPTION
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Version of 3/18/82
                       General Attorney*
                          GM-905-15
I.  Introduction.
     Serves as the Senior Associate Regional Counsel for Enforce-
ment in the Office of Regional Counsel.  The Senior Associate
has responsibility for providing legal advice and assistance
and policy recommendations to the Regional Counsel and
Regional program managers in major areas of responsibility,
including one or more major areas of national lead region
responsibility and coordination of all enforcement activities
within the Office.  The Senior Associate coordinates and
directs the entire workload of the Office in assigned areas
of responsibility, and is responsible for the work of other
attorneys in the Office who are assigned to work on matters
within such' areas of responsibility.  The Senior Associate
acts as the Regional Counsel when the Regional Counsel is
out of the Office.

II.  Major Duties and Responsibilities.

     The Senior Associate will be responsible for all legal
aspects of an entire media area within the Region, together with
one or more major national lead region responsibilities and
coordination of all enforcement activities of the Office.
The Senior Associate's responsibilities include the most
complex, difficult, and important matters to be handled by
the Office, requiring extensive knowledge and a very high
degree of expertise.  These matters often require extensive
legal research and analysis, together with consideration of
highly complicated factual and policy issues.  The Senior
Associate will be the principal attorney in the Region for
interpreting for the Regional Administrator and the Regional
program managers a substantial body of Agency regulations
and defending these regulations and Agency actions before'
Federal trial and appellate courts.  Matters assigned may
have precedential effects, may have the effect of substantially
broadening or restricting the Agency's activities and may
have an important impact on major industries in the Region.
These matters often involve substantial sums of money and
often are rigorously contested by some of the nation's most
distinguished, capable and highly paid attorneys.  The Senior
Associate will direct and coordinate the activities of junior
attorneys assigned to help carry out the specific elements
of the Senior Associate's duties and responsibilities.

     A.  Major Lead Region Matters.  Serves as a national
     legal expert in one or more major subject matter areas.
     These areas involve highly complex matters relating to
   May be Supervisory General Attorney if appropriate

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                  General Attorney
                     GM-905-15

significant aspects of the Agency's policies and
programs and require a very high degree of expertise.
Maintains specialized expertise in such area[s] and
serves as a consultant to other attorneys in the
Agency.  May manage a task force of Regional attorneys
in seeking solutions to common legal problems or in
preparing guidance documents, model agreements, regulations,
pleadings, etc.  In this capacity, serves as the
liaison between the Office of General Counsel and the
Offices of Regional Counsel.  Arranges conference
calls, meetings and other means of exchanging information
among Regional attorneys.

B.  Coordination of Enforcement Matters.

     1.  Expertise in Enforcement Matters.  Develops and
     maintains expertise in all Agency enforcement
     policies, including guidance on prioritization of
     enforcement actions, development of enforcement
     cases, preparation of administrative letters and
     orders, preparation of litigation referral packages,
     management of litigation matters, negotiation and
     settlement of cases, etc.

     2.  Liaison with the Office of Enforcement Counsel.
     Acts as the Region's principal liaison attorney
     with the Office of Enforcement Counsel.  Receives
     guidance from the Office of Enforcement Counsel
     and transmits it to the other attorneys in the
     Office of Regional Counsel.  Keeps the Office of
     Enforcement Counsel informed on Regional matters,
     as needed.  Attends briefings and training sessions
     as needed.

     3.  Liaison with other Legal Offices.  Acts as
     the liaison with other Offices of Regional Counsel
     on the development of enforcement policies and
     procedures in connection with lead Region efforts.     '
     Acts as liaison with the Department of Justice,
     the affected U.S.  Attorneys and the Attorneys
     General of states within the Region on overall
     enforcement policy and procedural matters.

     4.  Development of Regional Enforcement Policies
     and Procedures.  Assists Regional program managers
     in developing Regional enforcement policies and
     procedures and reviews such policies and procedures
     for consistency with national policies and procedures.
     This work is done in coordination with the Associate
     Regional Counsels for the other major areas of
     responsibility within the Office of Regional Counsel.

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                        -3-

                  General Attorney
                     GM-905-15
     5.  Coordination of Enforcement Matters in Office
     of Regional Counsel*Is responsible for informing
     the other Associate Regional Counsels of developments
     in enforcement policy.  Coordinates legal work
     on enforcement matters being handled by the Office
     of Regional Counsel so as to assure that all
     enforcement activities are consistent with national
     policies and procedures.  Maintains files on
     current enforcement policies.

     6.  Multi-media Enforcement Case Assignments.
     Reviews enforcement matters involving .more than
     one major area of responsibility and makes recom-
     mendations to the Regional Counsel as to which
     Associate Regional Counsel should be given the
     lead responsibility for handling the matter.
     Reviews the handling of multi-media enforcement
     matters so as to assure adequate coordination
     within the Office.

     7.  Review of Resources Available for Enforcement
     Legal Services^Periodically reviews^the allocation
     of resources for enforcement matters within the
     Office of Regional Counsel and makes recommendations    •
     to the Regional Counsel for obtaining adequate          *
     resources to meet the requirements of the Region's  -
     enforcement efforts.

     8.  Coordination of Criminal Investigators.  Coordinates
     the work of any criminal^nvestigatory personnel who
     are assigned to the Office.  Ensures that such personnel
     attend to the highest priority matters in the Region,
     that they are assigned staff attorneys to work with
     them to assist in proper case development* and that
     they properly coordinate their activities with the
     Office of Inspector General.

C.  Acting Regional Counsel Duties.  Acts as the Regional
Counsel when the Regional Counsel is out of the Office.

D. Legal Research and Problem Resolution.  Researches
and resolves the legal questions which arise under all
regulations, lawsuits, enforcement actions, executive
orders and other administrative actions involving major
Federal statutes affecting the Agency's programs, which
may include (depending upon the specific areas assigned
by the Regional Counsel) such statutes as the Clean
Water Act, the Clean Air Act, the Toxic Substances

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                  General Attorney
                     GM-905-15

Control Act, the Safe Drinking Water Act, the Resource
Conservation and Recovery Act, the National Environmental
Policy Act, the Comprehensive Environmental Response, .
Compensation and Liability Act and the Federal Insecticide,
Fungicide and Rodenticide Act (in each case as from
time to time amended}*  In areas assigned by the Regional
Counsel, is the focal point within the Region for resolution
of legal issues arising under such statutes (except for
matters of unusual national importance which require
consultation with the Offices of General Counsel or
Enforcement Counsel).

E.  General Legal Advice and Policy Recommendations.
Either acting through the Regional Counsel, or, at the
direction of the Regional Counsel, directly, provides
the Regional Administrator, Deputy Regional Administrator
and the Regional Divisions and Offices with general
legal advice and (upon request) policy recommendations
concerning those Regional programs, operations and
activities in areas assigned by the Regional Counsel so
that their major decisions are made with applicable
legal considerations in mind.

F.  Legal Advice and Policy Recommendations on Enforcement
Matters*  Provides legal advice and policy recommendations
to the Regional program managers responsible for enforcement •.
matters.  Assists in the preparation of major legal
correspondence, notices of violation, administrative
orders, litigation referrals and other enforcement
documents and reviews such documents for legal sufficiency
and consistency with Agency legal interpretations and
policy guidance.  In assigned areas, is responsible for
assuring that the Agency's centralized data reporting
.systems are kept current with information on Regional
enforcement matters.  Conducts investigations into  .
criminal matters in conjunction with Agency investigatory
personnel and law enforcement agencies.

G. Legal Advice and Policy Recommendations to Grant Programs."
Provides legal advice and policy recommendations to
managers of Agency grant programs, including the construction
grants program administered under Title II of the Clean
Water Act.  Advises on the eligibility for Agency funding
of cost items under Agency grants, including cost overruns
by contractors on Agency-funded projects.  Works closely
with the Agency's Office of Inspector General in resolving
problems arising under audit activities and investigations.
Drafts special grant conditions to cover unusual or
unique situations.  Assists state attorneys in interpreting
statutes and regulations administered by the Agency,

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                  General Attorney
                     GM-905-15

advising on the handling of claims matters and generally
serving the needs of .programs which have been delegated
by the Agency to state agencies.  Prepares final Agency
decisions on bid protests arising under grantee procurement.
Conducts the Region's participation in grant appeal
proceedings.

B.  Drafting of Determinationsy Regulations, Notices, etc.
Drafts and reviews final Agency determinations, proposed
and final regulations, notices and such other documents
to be published in the Federal Register, including
Agency actions on state air pollution plans, designations
of sole source aquifers under the Safe Drinking Water
Act, approvals and authorizations of state programs under
the Clean Water Act, the Clean Air Act, the Resource
Conservation and Recovery Act, the Federal Insecticide,
Fungicide and Rodenticide Act and other Federal environmental
statutes.

I.  Litigation Matters.  Manages and coordinates the
Region's participation in defensive'and enforcement
litigation resulting from the Region's activities
under the statutes referred to above.  Conducts discovery
and prepares motions, briefs and other litigation documents.
Appears before courts from time to time to conduct
trials, hearings and oral arguments.  Works closely
with the Offices of Enforcement Counsel and General
Counsel at Headquarters and the Department of Justice
or U.S. Attorneys.  Assists U.S. Attorneys in seeking
indictments in criminal matters and in prosecuting such
matters.  Coordinates with state attorneys general.
Represents the Region in administrative proceedings of
EPA and other agencies.

J.  Negotiation and Informal Dispute Resolution.  Represents
the Region in its dealings with outside parties, including
negotiation of bilateral agreements, consent orders and
judgments, and memoranda of understanding.  Represents      :
the Region in negotiating the settlement of disputed
matters so as to avoid protracted and expensive litigation
and facilitate expeditious administration of Agency
programs.

K.  Hearing Officer Duties.  Serves as hearing officer
in hearing and deciding matters brought before the
Agency and assists the Regional Administrator in preparing
formal administrative decisions.  Some such decisions
(e.g. bid protest decisions arising under the construction
grants program) are final Agency action subject to
direct review in the Federal courts.  At the request of
the Regional Counsel, performs responsibilities which

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                  General Attorney
                     GM-905-15

the Administrator has delegated to the Regional Counsel,
such as rendering decisions on confidentiality of business
information under 40 C.F.R. Part 2, which decisions
also become final Agency action.

L.  Representation of the Region,  Represents the Region
at conferences and meetings held with other Federal
departments and agencies. Congressional committees and
individual congressmen and senatorsr the General Accounting
Office, governors of states and staff offices of governors,
state and local officials* representatives of private
industry and farm groups, etc. and in this capacity is
required to give expert legal advice with respect to
many novel legal situations and problems arising from
the administration of Regional programs.  Prepares and
delivers advice and testimony to state legislative bodies
in connection with their deliberations on assumption of
responsibilities for programs to be delegated by the
Agency.

M.  Liaison with Offices of General Counsel and Enforcement
Counsel.  Serves as liaison between the Region and the
Offices of General Counsel and Enforcement Counsel to
provide an effective channel of communication in order
to assure that the Region obtains legal judgments from
the Office of General Counsel and policy advice from
the Office of Enforcement Counsel and also to assure
that such Offices are able to base such judgments and
such advice upon accurate perceptions of the pertinent
facts and Regional program objectives.

N.  Coordinating and Directing Legal Work.  Coordinates
and directs the work of one or more attorneys.  Makes
day-to-day work assignments and reviews all major efforts
of such attorneys.  The review functions include ensuring
that (1) written material is clear, precise, and of
high quality, (2) work is completed on time, (3) prompt
advice is provided to the Regional managers of programs,
and (4) oral presentations, whether before courts or
other public bodies, are of high quality.  Participates
in the recruiting and hiring of attorneys, and provides
attorneys under supervision with opportunities for
professional growth through work experience and training.
Assists the Regional Counsel in conducting performance
evaluations of junior attorneys.

O.  Other Duties.  Performs other duties as assigned.

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                       General Attorney
                          GM-905-15

III.  Supervisory Controls.

      The Senior Associate reports to the Regional Counsel and
has an attorney-client relationship with all Regional program
managers for whom work is performed and with the Office of
Enforcement at Headquarters.  Areas of responsibility are
assigned by the Regional Counsel, and within those areas of
responsibility the Senior Associate has wide latitude in
prioritizing workload, directing and coordinating the efforts
of staff members, conducting research, preparing documents
and exercising judgment and initiative in completing assignments
and making legal judgments and policy recommendations.  Legal
advice, policy recommendations and advocacy during adversarial
proceedings are normally considered expert.  Within assigned
areas of responsibility, the Senior Associate accepts work
requests directly from Regional program managers.  The Senior
Associate .is expected to act as the Regional Counsel when
the Regional Counsel is out of the Office.  The Senior Associate
is also expected to represent the Regional Counsel from time
to time in areas of assigned responsibility, although consultation
and discussion with the Regional Counsel are required when
necessary in connection with major legal judgments or policy
recommendations.  Completed work is reviewable for consistency
with Agency policy, precedential effect and overall effectiveness.
The Senior Associate is expected to rotate areas of assigned
responsibility with other Associates within the Office of         •
Regional Counsel from time to time.

IV.  Qualifications.

     The Senior Associate must have the equivalent of a JD or
LLB degree and be a member of the bar.  Other qualifications
requirements may be established by the Regional Counsel,
depending upon the needs of the Office.

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       2.  Basis for Assignments.  The lead attorneys role
thall be assigned on the following basisi

         (a).  Regional Matters.  Normally, the Office of
Regional Counsel shall take the lead on matters arising in
the Regions, except where the Regional Counsel and the
the appropriate supervisor within the Office of Enforcement
Counsel agree* after conferring at ah early point in the develop*
ment of the natter, that the matter is of overriding national
significance and that the lead role should be assigned to
an attorney in the Office of Enforcement Counsel.  In cases
where the Regional Counsel and the supervisor within the
Office of Enforcement Counsel are unable to agree as to
which level should be assigned the lead role, the matter
will be resolved by the Associate Administrator for Legal
and Enforcement Counsel.

         (b).  Enforcement/Defensive Matters: Appeals.  In
instances where' enforcement litigation and defensive litigation
arise involving essentially the same parties and the same set
of circumstances, the Associate Administrator for Legal and
Enforcement Counsel shall determine the allocation of roles
(including, where deemed necessary, the establishment of a
lead attorney for the entire matter) so as to ensure that
both aspects of the matter are properly represented and that
the positions of the respective Offices are well-coordinated.
The Office of General Counsel (or the appropriate Office of
Regional Counsel) shall have the lead on all matters before
Courts of Appeals, even though the lead on the matter was
previously taken by the Office of Enforcement Counsel.

       3.  Obligations to Other Attorneys.  The lead attorney
shall provide other Agency attorneys assigned to the matter with
adequate opportunities to contribute to the litigation effort*
including participation as supporting counsel in the development
of the litigation strategy, the preparation of legal documents,
and the conduct of negotiations with opposing parties.

VIII.  GENERAL LEGAL MATTERS? RELATIONSHIPS WITH OGC.

The reorganization will not change the working relationship*
between the Office of General Counsel and the Offices of
Regional Counsel.  All existing lines of communication and
all existing procedures should continue to be used until
further notice.

IX.  STEPS TO TAKE IN IMPLEMENTING THIS GUIDANCE.

     A.  Completion of Interim Reorganization.  A Region which
has not yet made arrangements for its enforcement attorneys
to report to the Regional Counsel should do so without delay,
regardless of the status of its overall reorganization.

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                STATES ENVIRONMENTAL PROTECTION AGENCY
                        WASHINGTON.-B.C. 20463
                                                 ADMINISTRATOR
KZM3MKBOM

                           •
SUBJECT*   Regional Organization Structure

TOt        Associate Administrators
           Assistant Administrators
           Regional Administrators
           Staff Office Dirtctora  .


     This  siemorandum provides guidance for regional organization
and will subsequently be incorporated into the Agency Organization
and Functions Manual*
                                                                  *
Reorganization Objectives,  Regional organization decisions include
consideration of the following objectives:

         • Clarifying accountability for regional programs.

         • Facilitating communication links between related
           Headquarters and regional components*      '

         •> Improving regional policy and management decision*
           Baking processes*

         - Placing functions in organizations where they        ,. :
           can best be integrated with related activities.

        . •* Favoring fewer and larger organizations to avoid
         • subsequent further consolidation and reorganization
           in a tine of declining resources*
       •

Xn organizing to carry out these objectives, regions will select
one of the two organization patterns described below*

yeeomrnended Organization.  Regional Administrators are authorized
to establish a regional structure and organization of functions  as
outlined in Attachment 1.  Major features of the authorized organi-
zation include the following!

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      2. Enforcement functions of pernit issuance  and  related
 compliance monitoring Are assigned to the appropriate program ..,
 divisions.  This includes issuance of notices  of  violation      '
 find administrative orders,'after consulting with  the  Office of
 Regional Counsel.  (Permit coordination functions and placement
 Are optional.)
                                               • •
                         ••
      2.  Legal vork associated with Enforcement litigation and
 current Regional Counsel functions vill be performed  in newly
 structured and expanded Offices of Regional Counsel reporting to
 the General Counsel with the following provisional
                        i
          a.  Regional Counsels vill provide the- Regional  •
 Administrator with legal advice and assistance for all program
 areas in an attorney client relationship.
•
          b.  The Regional Administrator vill continue to initiate
 enforcement actions.  These actions vill be based upon guidance
 from the Enforcement Counsel, Office of Legal  and Enforcement
 Counsel, and vith legal concurrence of the Regional Counsel.

          e.  As in the past the Regional Administrator vill
 participate in and concur vith the General Counsel in selections,
 promotions, awards and disciplinary actions for Regional Counsels.
 Regional Administrators vill be a party to performance agreements
 for and vill participate in the performance ratings of Regional  '
 Counsels by the General Counsel.                    ^^
                                                       •.

          d.  The Regional  Administrator vill also continue to
 manage the resources of the Office of Regional Counsel and vill
 provide certain administrative support such as space  allocations,
 processing of personnel actions, and the management of travel and
 training accounts.

      3.  Two staff offices are authorized  — an Office of
 Congressional and Intergovernmental Liaison and an Office of
 Public Affairs.                                                . -'•

      4.  The preferred option for policy and Management functions
 is  to establish an Office  of Assistant Regional Administrator for
Policy and Management.   The Assistant Regional Administrator vill
function, as a key jnember of the regional management team by guiding
the internal decision-making processes,  including the analysis and
evaluation of issues requiring policy or management decisions by
the Regional Administrator.   The other option  is  to structure vith
a Management Division as discussed later.

           a.  The management systems  and analysis function vill
 include the development of program strategies, including State/EPA
Agreements, program evaluations,  and  analytic  studies.

-------
         b.  Internal equal employment opportunity functions vill
be strengthened by being  integrated as part of the personnel Manage-
ment program with oversight and assistance from an E.Z.O. Officer
in the Office of the Assistant Regional Administrator.         ./,

         e.  As currently operating in some regions, all grants  .
administration functions, including those for "construction grants,
vill be consolidated in this office.
         •                •                     •
         d.  Environmental" Assessment (EIS) functions vill be
carried out under direction of the Assistant Regional Administrator.

     5.  Three programmatic divisions are authorized:  Water
Management} Air and Waste Management} and Environmental Services.
Written requests to establish separate divisions for Air Management
and for Waste Management vill be considered, primarily for larger
regions.  Approval by the Assistant Administrator for Administration
will be based on the overall rationale for the request measured
against the objective of achieving organizational efficiency and
economy.  ..

     C.  External civil rights compliance and ainority business
enterprise functions are assigned to the Water Management Division
to be integrated with the construction grants program.

     7.  Comprehensive Environmental Response, Compensation'and
Liability Act of 1980 (Superfund) coordination and remedial action
functions are assigned to the Air and Waste Management Division. .
Superfund and CWA Section 311 emergency response activities vill'.
be performed by the Environmental Services Division.
                                                •
     8.  Toxics and Pesticides program activities are assigned to
the Air and Waste Management Division.  The Pesticide sampling
function is to be integrated with other field activities in the
Environmental Services Division.

Optional Organisation.  Regional Administrators may elect, vith
approval from the Assistant Administrator for Administration,  to
adopt the alternative regional organization reflected in Attach-
ment 2.  Selection of this structure should depend on the Regional,.-
Administrator's management style and other management considera-:  -''
tions.  This option reflects a regional Management Division concept
vith less responsibility in the policy and decision-Baking process
than that assigned to an Assistant Regional Administrator.  Under
this alternative, placement of the Environmental Assessment and
State/EPA agreement functions is optional.  The same  flexibility
exists to request separate Air Management and Waste Management
Divisions*

State Liaison.  The extent and kind of liaison that Regional Offices
develop and maintain vith each State is left to the discretion of
the Regional Administrator.  XPA assignments may be a viable option.
Consideration of on-site State Offices (ranging from  one employee

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to a full operating contingency).is encouraged where such Offices
can contribute effectively to enhancing our relationship with
the States end to improving EPA'a efforts to delegate its programs.
                                                              • i
However, a nunber ef factors Bust be weighed before deciding to*-'
establish & State Office.  Criteria for use in aafcing these
decisions are included in Attachment 3.   Zf S^ate Offices
with substantial programmatic functions are established their
placement say vary from the approved organizational alignments

Achieving efficiency and Economy,  Establishment of subordinate
organization structures and positions vithin them below the
Division and Office level is at the Regional Administrator'*
discretion.  However, this shall be accomplished observing sound
organizational judgment and position management principles
contained in EPA guidance.documents*  Grade levels of positions
sust be supportable by appropriate position classification
standards.  This guidance is reflective of the management
philosophy of this Administration.  To achieve and maintain an
acceptable management posture within each region. Regional
Administrators are expected to establish a viable personnel
management function in the region at a level consistent with its
importance to our management objectives and to consult with the
Personnel Officer regarding management issues'on a regular basis.

Implementation.  New Regional Administrators are authorised'to
implement the recommended organization structure as early as
possible, consistent with management's responsibilities to
employees and employee unions.  Acting Regional Administrators •.
should consult with Clif Killer (FTS 755-0442) or Seth Hunt (FTS
327-3895), Special Assistants to the Administrator, prior to
implementation ef any reorganization*

     The main purpose of regional reorganization is to provide
a more effective structure which is closely aligned to the
Headquarters organization.  Our experience to date with the
Headquarters organization has been gratifying in that it provides
for stronger and more consistent management and has received ~
widespread favorable reaction.  Zn this, as in any organization,
its effectiveness will depend on its people.  Z am confident    _-:
that EPA personnel will help cake.EPA an effective, well managed :"
entity.
                         Anne M. Corsuch

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-------
                    Criteria for State Offices

                                                               •/
2.  Type of Office to be established (coordination/liaison,
operationsr guni-regions 7 single or rcuIti-prograrr.Sr etc.) and the
programs to be "represented—Are the proposed functions and
activities the best way of. achieving the Office.1* purpose, what
priority are the programs within the Regional Office, and are
they the ones with which the State &<*«ds the nost assistance?

2.  State and Regional Office purpose, qoalsf and objectives—
Are they in concert and will the office further the goals and
objectives of the Region and 1PA?

3.  Status of state programs/assumption cf delegated authority—
Are the State programs at the proper stage of development where a
State Office could aafce a significant impact and will the Office
further the goal of delegating Bore responsibility to the State?

4*  Keeeptivity to EPA presence—Is there a genuine interest in
as well as a need for an £PA State Office?

5.  Cost ef establishing and operating the office and aoving
people—Do the financial costs outweigh the anticipated benefits?

€.  Effect on resources within the Regional Office—Will State *
Offices fragment and deplete the critical mass of expertise within
the Regional Office?  (This will vary depending on the~size of the
Regional Office and the number and size of State Offices.)

7«  The quality of employees available for the particular Office—
Are they experienced and highly activated?

8. 'Accessibility by public transportation—Is the location remote
and difficult to reach so that direct communications are less
frequent?.

9*  Past and current relationship between top management and the~<
stafT~IeveIs"withan the Regional Office and the State—Is there a'
strong commitment and backing from top management along with a
history of trust and a good working relationship between the staffs?

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                        OFFICE OF REGIONAL COUNSEL
                         ATTORNEY ROTATION RECORD
          Attorney


X.  Major Areas of Responsibility*
                                                            Dates Assigned
                                                            From        "So
1.  Air. .

2.  Hater.
    A.  NFEES. ••••••••••••••••••••
    b.  Jbn-flPDES Clean Water Act ........ ...
    c.  Safe Drinking Vfater Act. . ......... .
    d.  Other
          (1)  _ . ....
          (2)                                . ....

3.  Grants, Contracts and General Administration ...
    a.  Construction grants
    b.  Program grants (including State/EPA
        Agreements) ..... . ...... .
    C.  HEPA
    d.  FOIA
    e.  Personnel ....... ... ..... ...
    f .  Conflict of interest ........... .
    g.  Other
          (1)  _ . ...
      .    (2)                                .
4.  Hazardous Substances and Emergency Response. ...

    a.  RCRA Delegation Matters ............
    b.  Other RCRA Hatters ....... .......
    c.  Super-fund and Section 311 of Clean Water Act .
    d.  TCSCA and FIFRA ................
    e.  Other
          (1)                                . ....
5.  Lead Region
    a.
    b.
    c.
    d.
6.  Coordination of Enforcement Natters.

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          Note on Coordination of Policy Development
          and Review of June 23, 1982
     Since this memorandum was written, OLEC has split into two

organizations:  Office of Enforcement and Compliance Monitoring

(OECM) and Office of General Counsel (OGC).  The office identi-

fied in the attached memorandum as being responsible for coordi-

nation of policy development and review, OLEP, only handles

enforcement questions.

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          UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                        WASHINGTON. DC 204(0
                           M 23
                                                        OFFICE OF
                                                 LEG At. AMD eNFOHCCMCNT COUNSEL
MEMORANDUM

SUBJECT:

FROM:




TO:
Coordination of Policy Development and Review
Robert M. Perry
Associate Administrator for Lega
ment Counsel and General Counsel

Enforcement Counsel
Deputy General Counsel
Associate Enforcement Counsels
Associate General Counsels
Regional Counsels (Regions I-X)
and Enforce-
     The proposed reorganization of the Office of  Legal and
Enforcement Counsel (OLEC) and the enforcement task force
report have been helpful in identifying areas in which OLEC
needs to develop standard operating procedures and to more
clearly define respective areas of responsibility  for
various offices within OLEC.  Policy development and review
were two areas so identified.

     Specifically, problems identified in those areas
include the need for better coordination between the Office
of General Counsel and the Office of Enforcement Counsel in
matters of legal and enforcement policy development and
review; the need to establish operating procedures and
policies for the uniform and effective conduct of  legal
and enforcement activities by OLEC; and the need for some
OLEC focal point for dealing with other Agency offices in
policy activities relating to legal and enforcement matters.

     To address these problems, I have established the
Office of Legal and Enforcement Policy (OLEP).  This office
will report directly to me and will serve as my representative
for overseeing legal and enforcement policy development and
review work within OLEC.

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                        -2-


    OLEP will assume an active management role with regard to
policy activities.  In this role, its initial responsi-
bilities will be:

      1) to coordinate the participation of OLEC on policy
         related matters with other Agency offices  (including
         participation in the review of regulations during
         Steering Committee and Red Border reviews);

      2) to ensure the participation of all necessary
         OLEC and program Headquarters and Regional components
         in the policy development stage;

      3) to designate which group(s) in OLEC should parti-
         cipate or take the Office lead in policy and
         guidance development; and

      4) to assume the lead on policy and guidance develop-
         ment in matters which significantly impact more
         than one media area and those matters in which a
         national policy perspective is important.

     Obviously, your cooperation is vital in order for
OLEP to perform these functions effectively.  I have
asked OLEP to seek your advice on how their assigned
responsibilities can best be integrated into OLEC activities.
Accordingly, OLEP staff will be contacting you shortly in
that regard.

     In the meantime, please continue your current interim pro-
cedures for ensuring that OLEC activities are coordinated properly
among the different components of our Office.  Should you have any
questions regarding the matters contained in this memorandum,
please contact Richard Smith, Acting Director of the Office of
Legal and Enforcement Policy, at 382-4550.

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              Note on General Operating Procedures
              for the Civil Enforcement Program


     There have been many changes in the structure and function

of Agency's enforcement program, since the Agency issued this

memorandum.  OECM is currently preparing a summary of the

changes.  The summary should be ready the next time the Compen-

dium is updated.

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            UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                          WASHINGTON. DC 104(0
                           Jll   8
                                                          erne* or
                                                  bCa*k AND KNf ONCKMKMT COUMCKt.
MEMORANDUM
SUBJECT:  General Operating Procedures for the
            Civil Enforcement Program
FROM:     Robert M. Perry
          Associate Administrator for L&'gal and Enforcement
            Counsel and General Counsel

TO:       Associate Administrator for
            Policy and Resource Management
          Assistant Administrators
          Regional Administrators
          Staff Office Directors


I.   Introduction

     This memorandum provides general guidance regarding EPA's
enforcement process, consistent with new Regional and Headquarters
structures.  The memorandum describes the respective roles and
relationships of the various EPA offices which participate in
enforcement activities.

     I greatly appreciate tne contributions which you and your
respective staffs have made in participating in the development
of this general guidance.  This guidance has reached the point
at which it has received the consensus support of all affected
Agency offices on virtually all matters which it addresses.
More detailed guidance on operating procedures for each media-
specific program will be forthcoming from the responsible
Assistant Administrators and myself. '

     The guidance contained in this document on responsibilities
and working relationships of all offices involved in the enforce-
ment process (which includes both enforcement compliance activities
and enforcement legal activities) has received a strong endorsement
from the Administrator.  The prescribed procedures provide explicit
guidance for implementing the Administrator's general policies on
these matters and are consistent with

     •  The Administrator's June 12, 1981 announcement of a new
        Headquarters structure;

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                             -2-


     -  The Administrator's September 15, 1981 memorandum regarding
        a new regional organization structure;

     -  My May 7, 1982 memorandum regarding the reorganization
        of the Offices of Regional Counsel;

     -  The June, 1977 Memorandum of Understanding between the
        Department of Justice and EPA.

     The operating procedures specified in this document are
designed to help accomplish the following objectives of the
Regional reorganizations stated in the Administrator's September
15, 1981 memorandum:             /

          •Reorganization Objectives*  Regional organization
     decisions include consideration of the following objectives:

          -  Clarifying accountability for regional programs.

          -  Facilitating communication links between related
             Headquarters and regional components.

          -  Improving regional policy and management
             decision-making.

             Placing functions in organizations where they can
             best be integrated with related activities.

          -  Favoring fewer and larger organizations to avoid
             subsequent further consolidation and reorganization
             in a time of declining resources.

     ". . . .  Major features of the authorized organization
     include the following:

         "1.  Enforcement functions of permit issuance and related
     compliance monitoring are assigned to the appropriate program
     divisions.  This includes issuance of notices of violation and
     administrative orders, after consulting with the Office of
     Regional Counsel.  (Permit coordination functions and place-
     ment are optional.)

         "2.  Legal work associated with enforcement litigation and
     current Regional Counsel functions will be performed in newly
     structured and expanded Offices of Regional Counsel reporting
     to the [Associate Administrator for Legal and Enforcement
     Counsel and] General Counsel with the following provisions:

              "a.  Regional Counsels will provide the Regional
     Administrator[s] with legal advice and assistance for all
     program areas in an attorney client relationship.

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                               -3-
              "b.   The Regional Administrator will continue to
     initiate enforcement actions.   These actions will be based
     upon guidance from the [Associate Administrator for Legal
     and Enforcement Counsel and General Counsel, through]
     the Enforcement Counsel .... and with legal concurrence
     of the Regional Counsel.  I/

              "c.   As in the past the Regional Administrators
     will participate in and concur with the [Associate Adminis-
     trator for Legal and Enforcement Counsel and) General  Counsel
     in selections, promotions, awards and disciplinary actions
     for Regional  Counsels.  Regional Administrators will be a
     party to performance agreements for and will participate in
     the performance ratings of Regional Counsels by the [Associate
     Administrator for Legal and Enforcement Counsel and] General
     Counsel.

              "d.   The Regional Administrator will also continue
     to manage the resources of the Office of Regional Counsel and
     will provide  certain administrative support such as space
     allocations,  processing of personnel actions, and the  management
     of travel and training accounts."
T/Note that the Regional Counsel's formal concurrence
responsibility for enforcement actions as referenced in paragraph
2(b) (when read in conjunction with paragraph 1 of this excerpt)
arises at the point at which the Regional Administrator is prepared
to initiate a case referral by forwarding a case to the Office
of Legal and Enforcement Counsel for subsequent referral to the
Department of Justice.  For further specifics on these procedures,
please see Section IX below.  Note also that enforcement actions
(i.e. actions responding to specific instances of detected
violations), and enforcement activities generally, also should
be consistent with relevant guidance from Headquarters program
offices.

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                             -4-


     The guidance in this memorandum on the enforcement process
applies to the internal Agency working relationships and
processes involved in identifying and resolving violations
using informal, administrative and judicial enforcement
activities.  It does not apply in any respect to the development
and referral of criminal cases, which is being addressed in
a separate memo on general operating procedures for the criminal
enforcement program.  Moreover, any existing program-specific
guidance on enforcement operating procedures remains in
effect until it can be expressly superseded by new guidance
which is consistent with the policies and procedures articulated
in this document.                 /

II.  Enforcement Objectives

     This guidance prescribes operating procedures which the
the Adminstrator has endorsed as vital to assist EPA in
discharging its responsibility to administer a strong,
aggressive, and fair enforcement program.  The procedures
described here also are designed to achieve the following
enforcement objectives along with the general objectives
associated with the Regional reorganizations:

     - Establishing an enforcement program which deters unlawful
       conduct and advances the regulatory policies of  EPA through
       use of all available enforcement means.

     - Maintaining a credible enforcement program which encourages
       prompt, voluntary compliance, but deals firmly with
       significant violations which cannot be resolved  cooperatively
       and includes the use of litigation where appropriate.

     - Directing all enforcement activities towards the achievement
       of maximum environmental benefits.

In order to help achieve these objectives, these procedures
emphasize:

     - Continuing close and cooperative relationships
       among the Office of Legal and Enforcement Counsel
       (OLEC), which includes the Regional Counsel offices,
       the Department of Justice (DOJ), and all EPA program
       offices with enforcement responsibilities.

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                               -5-


     -  Working closely with States as partners in the enforcement
        process. 2/

III.  Roles and Relationships

     EPA's enforcement program is intended to induce regulated
parties to meet environmental requirements and to rectify instances
of noncompliance.  In order to accomplish these goals, EPA's
enforcement effort includes both compliance-oriented activities
and legal-oriented activities.  The compliance activities are
primarily the responsibility of EPA's program offices, while the
legal activities are primarily charged to OLEC (including the
Offices of Regional Counsel).

     While there are certain enforcement activities in which lead
responsibility is clear, there are other EPA activities which
include both compliance and legal elements.  Moreover, different
activities for which a given office has lead responsibility can call
for varying degrees of involvement with other EPA offices.   It is
crucial to the success of the Agency's enforcement program that
OLEC and the program offices work closely together in developing
policies, establishing coordination procedures and implementing
actions in areas where both elements are present.  Similarly, it
is important that both OLEC and the program offices diligently
coordinate activities in their respective areas of primary responsi-
bility to ensure that EPA appropriately focuses all phases of its
enforcement program on achieving common objectives.

     In the area of enforcement policy development, Assistant
Administrators have the lead in developing policies governing
compliance activities, while the Adminstrator has assigned me to
take the lead in developing policies governing legal matters.
OLEC and the Assistant Administrators are responsible for working
together in developing enforcement policy regardless of who has
the lead, and should jointly issue those policies which significantly
involve both of their respective areas of primary responsibility.
The Administrator has decided that I shall be responsible for
ensuring that all enforcement policies which EPA develops are
capable of being applied effectively and are consistent with the
goals of the Administrator under Federal law.  The Associate
Administrator for Policy and Resource Management is responsible
for overseeing the formulation of all Agency policy.
2/  For a more specific discussion on coordinating enforcement
activity with States, see Section III(H) below.

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                               -6-
     Program offices in Headquarters and the Regions are responsible
for identifying and establishing priorities for handling instances
of noncompliance within their respective areas of authorityr
evaluating the technical sufficiency of actions designed to remedy
violations, identifying for formal action those cases which cannot
be resolved less formally* and providing the technical support
necessary for developing cases and conducting litigation.

     OLEC (including the Offices of Regional Counsel) serves
EPA's respective program offices in enforcement matters in an
attorney-client relationship.  This means that OLEC is respon-
sible as legal counsel for providing client program offices with
support for informal and formal administrative resolution of
violations/ for the conduct of litigation (which includes
identifying evidence needed to support litigation), for interpreting
statutes, regulations and other legal precedent covering EPA's
activitiesr and for advising program managers on the legal
implications of alternative courses of action.

     Close cooperation among all parties (including DOJ) during
the case development process is critical to a successful and
legally supportable enforcement program.  Early and frequent
consultation of Regional Counsels by the Regional programs is
vital in case identification and development.  Moreover, a close
working relationship with program or technical staff is vital
to the Regional Counsels to ensure that the Regional Counsels
can serve the clients' interests.

     Regional Counsels are responsible for consulting with
the Associate Administrator for Legal and Enforcement Counsel and
General Counsel, through the Enforcement Counsel, and with
DOJ, where appropriate, to ensure that unresolved legal issues
do not subsequently become impediments to litigation.  Similarly,
Regional Administrators are responsible for consulting early
with Assistant Administrators on program policy matters to resolve
expeditiously any issues that may cause problems in developing a
case for litigation.  Representatives of EPA and DOJ offices
with enforcement responsibilities will work as a case development
team on a particular matter to coordinate their efforts and to
minimize or eliminate all problems prior to the Regional Counsel's
concurrence in a civil referral.

     Finally, OLEC will develop management procedures to ensure
that Enforcement Counsel and General Counsel attorneys work
closely together to identify and resolve expeditiously any legal
issues pertaining to enforcement matters, and thus enable EPA to
speak with one legal voice.

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                             -7-


     The following synopsis of roles and relationships state in
more detail the respective organizational responsibilities regarding
enforcement matters:
                                           »

     A.  Regional Administrators.  The Administrator's September
15, 1981 memorandum makes clear that Regional Administrators
have responsibility (consistent, as explained in Section IV
below, with applicable delegations of authority and concurrence
requirements) for enforcement compliance functions such as
issuing permits, monitoring compliance, collecting compliance
information according to Headquarters' guidance, and issuing
notices of violation and administrative orders.  They are also
responsible for initiating enforcement legal actions arising out
of these functions.  In executing these functions, the Regional
Administrator's responsibilities include building relationships
with State compliance programs, identifying violations of Federal
environmental laws, resolving those violations in a timely fashion
and a cooperative manner whenever possible, handling administrative
enforcement actions, and referring cases to Headquarters when
judicial action is necessary.  Because the Regional Administrators
are primarily responsible and accountable for the successful
operation of Regional enforcement programs, they are the principal
clients in enforcement matters.

     Notices of violation, administrative orders, administrative
civil penalty complaints, and many intermediate decisions are
actions with legal consequences.  Since the Regional Administrators
must bear the responsibility for the legal sufficiency of their
actions, they should consult with their respective Offices of
Regional Counsel prior to taking these actions, as indicated in
the Administrator's September 15, 1981 memorandum.  In addition,
because the Regional Administrators also are responsible for the
technical sufficiency of their actions, they are further responsible
for budgeting and supplying the necessary technical resources
and support, or otherwise arranging for that support (e.g., from
a Headquarters program office or the National Enforcement
Investigation Center), to permit the Agency to develop and pursue
enforcement actions, including litigation where appropriate.
The Regional Administrators are also responsible for obtaining
adequate Regional Counsel participation in preparing a case
(including final formal concurrence of the Regional Counsel)
prior to forwarding the case to Headquarters for formal referral
to DOJ.

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                               -8-


     The Regional Administrators will be responsible for
ensuring that they follow all policy directives from an Assistant
Administrator.  The Regional Administrators must ensure early in
the case development process that proposed enforcement actions
in response to specific instances of noncompliance are consistent
with national program policy directives established by the respon-
sible Assistant Administrator(s), and that Assistant Administrators
have the opportunity to participate in and review case development
activity.  The Regional Administrators also must ensure that
they satisfy any national program review or concurrence require-
ments, consistent with Section IV below.  OLEC normally will not
take responsibility for those program concurrences or reviews,
although staff attorneys will be available to assist throughout
the review process.

     Regional Administrators also are responsible for following
up on.enforcement actions (including litigation) to ensure that
violations remain corrected and that regulated parties are complying
with the requirements which those enforcement actions impose.

     B.  The Assistant Administrators.  As the national program
managers, the Assistant Administrators are responsible for
establishing enforcement compliance priorities, providing overall
direction to and developing accountability measures for their
respective Regional enforcement compliance programs, Keeping
compliance statistics (based on input as necessary from Regional
offices), providing technical support (including appropriate
Headquarters technical support for litigation activity), providing
resources in Regional program budgets to support enforcement
activities, taking the lead role in preparing guidance and policy
decisions on enforcement compliance issues, and concurring as
necessary on enforcement actions at as early a stage in the case
development process as possible.  In addition, Assistant Adminis-
trators may retain responsibility for issuing civil administrative
complaints and other administrative orders in cases of first
impression, overriding national significance, or violations by
any entity in more than one region.

     The Assistant Administrators are responsible for developing
and implementing program policies, and should rely on OLEC to
help them put enforceable, defensible programs in place.  The
Assistant Administrators also are responsible for participating
with OLEC in handling enforcement legal issues and for preparing
joint guidance for areas in which compliance and legal issues
overlap.

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                             -9-


     OLEC acts as attorney to the Assistant Administrator and
the Headquarters program offices on enforcement matters.  OLEC
attorneys are available to consult with program staff during the
development of program regulations, policies and guidance in
order to ensure the legal sufficiency of decisions and documents
relating to enforcement matters.

     C.  OLEC; The Regional Counsel (Enforcement Functions).  In
accordance with the Administrator's September 15, 1981 memorandum
and the May 7, 1982 memorandum regarding reorganization of the
Offices of Regional Counsel, the Regional Counsels are to provide
the Regional Administrators and Regional program managers with
legal advice and assistance for all program areas in the attorney-
client relationship.  Thus, for example, in enforcement matters
the Regional Counsels are available to assist the Regional program
managers in drafting or reviewing the terms and conditions of
permits, notices of violation, administrative orders, or adminis-
trative complaints (particularly where new or unique matters
are involved).  Because the Regional Administrators and Regional
program managers are responsible for ensuring the enforceability
and defensibility of documents with legal effects, they should
not hesitate to seek to involve Regional Counsels in developing
these documents.

     The Regional Counsels also provide assistance throughout the
case development process, participate in litigation activities
under the EPA/DOJ Memorandum of Understanding, and formally
concur on civil referrals prior to signature by the Regional
Administrator.  Regional Counsels' formal concurrence ensures
that any legal issues associated with the referral have been
addressed appropriately and that these referrals are consistent
with OLEC guidance.  Regional Counsels also are available to
assist in negotiating enforcement matters and should be present
whenever outside parties are represented by counsel in those
negotiations.

     Regional Counsel attorneys normally serve as lead Agency
counsel in handling specific enforcement actions, consistent with
the discussion of that concept in Section VII(B) of the May 7,
1982 memorandum on regional reorganization.  As lead Agency attorney,
the Regional attorney is responsible for managing an enforcement
case for EPA and for coordinating case development and litigation
activity with DOJ as discussed in Section VIII below.  The Regional
Counsels should establish practices to coordinate the participation

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                              -10-


of DOJ and Headquarters Enforcement Counsel attorneys so as to
resolve any potential legal problems for litigation as early in
the case development process as possible.  Regional Counsels
also provide legal representation fcir the Agency in administrative
hearings originating in the region, including NPDES evidentiary
hearings, and administrative appeals from those hearings.

     Let me emphasize that in all these matters the Regional
Counsels must make every effort to ensure that they continue
to maintain the close working relationships with their counterparts
in the Regional program offices, apd that they also maintain
clear and open lines of communication.

     D.  OLEC; Enforcement Counsel Matters.  Consistent with
attorney-client relationships, the Associate Administrator for
Legal and Enforcement Counsel and General Counsel provides,
through the Enforcement Counsel, legal advice regarding enforce-
ment matters to the Assistant Administrators to assist them in
performing their programmatic functions, including advice  on
enforcement activities for which Headquarters program offices
are responsible.  The Associate Administrator for Legal and En-
forcement Counsel and General Counsel, through the Enforcement
Counsel, also develops legal enforcement policies and guidance;
confers, where appropriate, with DOJ on the potential impact of
enforcement policy on litigation; and cooperates with the  Assis-
tant Administrators in the development of enforcement policies
which involve both enforcement compliance and enforcement  legal
activities.

     The Enforcement Counsel checks both cases forwarded from
the Regions for referral to DOJ and consent decrees prior  to
submitting them for approval to the Associate Administrator for
Legal and Enforcement Counsel and General Counsel to ensure that
they are complete and that they identify and properly address
all precedential or nationally significant questions.  (See
Section X below.)  Enforcement Counsel attorneys may be assigned
a more active role in case development or litigation-related
activities in a limited number of actions involving precedential
or overriding nationally significant issues as described in
Section VII(B) in the Nay 7, 1982 OLEC memorandum on regional
reorganization.  Otherwise, Regional Counsel attorneys will
assume the Agency lead, and Enforcement Counsel attorneys  will
function in a supporting role by keeping apprised of the issues
from the start of the case development process as OLEC's Headquar-
ters representatives and by coordinating legal activity and the
contribution of case information to the case development effort
from Headquarters and the Regions.

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                               -11-


     The National Enforcement Investigation Center (NEIC), which
reports to the Enforcement Counsel, is a national technical resource
with special expertise in matters asociated with investigations,
case development, litigation support, and evidence.  The Regional
Administrators and Assistant Administrators, in support of enforce-
ment compliance and case development activities, may draw upon
the NEIC's resources as they deem necessary, consistent with
priorities which OLEC establishes regarding NEIC's availability.
Regional and Assistant Administrators should give closest
consideration to involving NEIC in cases which have precedential
implications, national significance, or are multi-Regional in
nature, as opposed to cases which Involve more routine matters.

     E.  OLEC; General Counsel Matters.  Within the Agency,
tne Associate Administrator for Legal and Enforcement Counsel
and General Counsel, through the Deputy General Counsel, will
continue to be responsible for interpreting statutes and regula-
tions, reviewing proposed policy for consistency with national
law, providing national legal interpretations, and assisting in
resolving legal issues which arise in connection with policies
and regulations, in order to assure that the Agency speaks with
one legal voice.  Consistent with present practices and existing
guidance, the Associate Administrator for Legal and Enforcement
Counsel and General Counsel will manage, through the Deputy
General Counsel, all matters resulting from judicial appeals
(with either General Counsel attorneys or Regional attorneys
acting as lead Agency counsel, depending on the nature of the
matter).  The Regional Counsels will manage the Agency's legal
role in hearings and administrative appeals of actions origina-
ting in the Regions, including proceedings relating to permits
and administrative civil penalty actions.

     F.  The Department of Justice and the U.S. Attorneys' Offices.
The Agency's working relationship with the Department of Justice
and the U.S. Attorneys continues to be governed by the June 1977
Memorandum of Understanding.  DOJ's and the U.S. Attorneys'
primary roles will normally be that of conducting judicial enforce-
ment matters and participating in case development activities as
described in Section VIII below.  OLEC's Headquarters and Regional
components are expected to use their best efforts to ensure that
they maintain constructive working relationships with DOJ in
these areas.

     6.  Policy Coordination.  As indicated above, the Assistant
Administrators and I should work closely together during the
formulation of all policies which affect enforcement to make
sure that the Agency conducts its enforcement activity in a
credible and legally supportable manner.  The Administrator has
affirmed my responsibility to take the lead in coordinating

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                               -12-


work on establishing systematic procedures for developing and
tracking Agency enforcement policy.  As part of this effort, I
am planning to propose the joint development with each of the
Assistant Administrators of a comprehensive set of enforcement
operating procedures for each program, in order to provide
consistent guidance for all stages of the case development
process.  Program guidance which is currently in effect remains
operative except to the extent it is inconsistent with the
operating procedures prescribed in this document and is not
superseded by future guidance.

     As policy or guidance documents affecting Regional enforce-
ment programs are developed, Regional offices should be consulted
or otherwise receive an opportunity to be involved at an early
stage to make sure that the final guidance documents can be
implemented effectively.

     H.  Coordination with States.  Coordination with States is
normally the responsibility of the Regional Administrator, subject
to national guidance.  Because this responsibility encompasses
many areas in addition to enforcement, this memorandum does not
cover general issues associated with the Region-State relationship.

     On enforcement matters, however, Regional Administrators
should maintain close working relationships with appropriate
State program officials.  As part of enforcement planning activities
independent of the case development process, Regional offices (with
participation from Headquarters program offices and consistent
with national guidance) should consult with States to develop
general strategies for handling noncompliance, for promoting
local resolution of noncompliance problems, and for facilitating
open lines of communication by

     0 Consulting on which enforcement actions States should
       manage and which Regional Offices should manage.

     0 Agreeing on appropriate time frames and parameters for case
       resolution.

     0 Agreeing on circumstances under which EPA may assume the
       lead on a case from the State.

     0 Coordinating activity on tracking the progress of enforcement
       actions.

     0 Following up on the application of agreed-upon strategies to
       ensure their effectiveness.

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                               -13-


     On legal matters specifically, the Office of Regional Counsel
should develop a close working relationship with State Attorneys
General and/or other appropriate legal authorities in each State
in order to support the Regional .Administrator in coordinating
activity with that State.  The Office of Regional Counsel is also
available to consult with the Regional program managers regarding
delegations/ the legal sufficiency of State remedies, or other
legal aspects of State actions.

     National environmental laws do assign major roles to the
States for administering pollution control programs.   Those laws
also place ultimate responsibilities for effective enforcement
on the Federal Government.  The States' respective abilities to
enforce environmental requirements can vary according to the
elai-utory authorities, personnel, or other resources  available
to them.  It is the Administrator's policy to uphold the
environmental statutes which EPA administers, and the Regional
Administrators are responsible for complementing State efforts
with Federal action in order to achieve compliance with those
laws in a timely manner.

     I.  EPA's Accountability System.  EPA's accountability system,
overseen by the Associate Administrator for Policy and Resource
Management, monitors the performance of the Agency's  entire enforce-
ment program, including both compliance and legal activities.
It is the Administrator's policy that pursuant to national program
direction from the Assistant Administrators, Regional Administrators
will establish specific measures of compliance and enforcement
performance for which they will be held accountable in the
accountability system.  As the Agency's "law firm", OLEC will be
similarly accountable for providing consistent legal  advice,
decisions and policies; for expediting all referrals; and for
reducing backlogs of cases which have already been filed or
referred to the Department of Justice.

IV.  Delegations and Concurrence Requirements.

     The Administrator has endorsed an initiative to streamline
the enforcement process through a high-priority review of both
existing delegations of authority and concurrence requirements
imposed through those delegations or through other actions.
Each of the Assistant Administrators and OLEC should expeditiously
review all delegations and concurrence requirements relating to
enforcement activities in their respective areas of responsibility
to identify requirements which are unnecessary or inconsistent
with a streamlined approach to enforcement.  Until the Administra-
tor has an opportunity to act on the recommendations  resulting from

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                             -14-


this review, existing delegations (with any conditions) remain
in effect and should be followed until appropriate changes are
approved to implement the guidance provided in this document.
The Assistant Administrators and I shall announce any changes
of specific enforcement concurrence requirements in our respec-
tive areas of responsibility.

V.  Reporting Requirements and OLEC Oversight

     OLEC's Enforcement Counsel will keep to a minimum requests
for case development records and reports from Regional or
program offices.  Enforcement Counsel staff will place priority
on direct access to files or tracking and reporting systems for
case information to minimize additional information collection
and reporting burdens.  I expect the Regional Counsels to continue
to update the automated enforcement docket for cases which will
be or which already have been referred from the Regional offices,
and to provide periodic updates on all cases as necessary.

     Consistent with historical practices. Regional Counsels must
keep complete records of recommendations, decisions and documents
relating to the legal aspects of all cases, including cases which
are in early stages of development.  This requirement is intended
to ensure that an adequate legal record exists for each case that
the Agency ultimately refers for judicial action and to facilitate
evaluations of Regional Counsels' performance on enforcement
matters.

     The Regional Counsel should work closely with the Regional
Administrator to assist the Regional Administrator in following
similar recordkeeping practices to ensure that maintained files
are legally sufficient.

VI.  Reviewing Compliance and Determining Responses.

     The process of identifying violations and conducting Federal
compliance activities is the responsibility of the Regional
Administrator, consistent with national guidance and statutory
authorities and with applicable working agreements with States.
This process includes the following activities:

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                              -15-


     - Identifying noncomplying sources and potential enforcement
 ••..,....  . targets.

     - Coordinating enforcement actions with States,  as appropriate.

     - Determining the appropriate Agency response to violations,
       including:

          • Requests for information (formal or informal).

          • Informal discussions with the source.
                                  /
          0 Warning letters or notices of violation.

          • Administrative orders or administrative civil penalty
            complaints.

          0 Referrals to Headquarters for civil judicial action.

     - Participating in a client's role in settlement discussions
       to resolve administrative or judicial proceedings*

     Throughout the process, the Regional Counsel will act  as
attorney to the Regional program client.  Since the Regional
Administrator must make decisions and take actions with legal
consequences, the Regional Administrator should ensure that the
Regional Counsel is consulted as appropriate throughout the process,
particularly with regard to the legal consequences of selecting
alternative enforcement tools.  Attorneys are available to
ensure that all enforcement documents, especially administrative
orders and administrative civil penalty complaints, meet all
Agency legal requirements and are enforceable.  Regional program
officers should avail themselves of Regional Counsel  attorney
participation in discussions with an outside party who is represented
by counsel.

     As the likelihood increases that judicial remedies will
become necessary to resolve a case,  the importance of attorney
involvement also increases.  This includes meaningful coordination
with DOJ attorneys at early stages of the case development  process
consistent with the procedures specified in Section VIII below.
Rigorous standards of evidence and conduct will apply in any
adjudicative proceeding; thus, it is crucial that cases be built  from
the outset in a legally supportable way.  This memorandum discusses
in more detail in subsequent sections the referral process and the
conduct of settlement negotiations.

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                              -16-


VII.  Escalation

     The Regional Administrator is responsible for the timeliness
of informal solutions to violations of environmental laws and
for initiating the case development process.  This concept is
central to a credible enforcement program.  The Regional
Administrator (subject to Headquarters program office guidance)
and OLEC share responsibility for achieving timely resolution of
cases once the case development process begins.

     Responses to violations should be meticulously tracked within
each Region to make sure that each violation Is responsibly resolved
as expeditiously as practicable.  Time deadlines or goals should
be established within each Region as optimum response times; in
so™? areasr these deadlines or goals have already been established
in national guidance.

     The Administrator has given strong general support to the
use of reasonable "deadline" dates in conducting negotiations to
ensure that negotiations do not become a means for delay.  In
any particular case, the Regional Administrator (in consultation
with the Regional Counsel) should always be prepared to escalate
to the next-most-serious response, when necessary, to avoid pro-
tracted negotiations resulting in unreasonably delayed remedial
action.

     It remains the Administrator's policy to take formal enforce-
ment action when negotiations or other efforts fail.  I shall
accept--and the Administrator will encourage--well-documented
civil judicial referrals from Regional Administrators whenever,
in their judgement, such action is necessary to ensure continued
progress toward compliance, even though active negotiations
still may be underway.

VIII.  The Case Development Process

     A group from OLEC (including Regional Counsel representatives)
has been conferring with DOJ for the purpose of, among other things,
formulating a process for developing cases for civil litigation.
This process involves periodic meetings in the Regions, at which
EPA attorneys and technical staff will meet with DOJ attorneys
(and invite Assistant U.S. Attorneys) to:

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                              -17-


     — discuss approaches to developing cases targeted as likely
        candidates for litigation;

     — review appropriate ways to handle developments relating to
        cases discussed at prior meetings;

     — provide information on program enforcement issues and
        priorities;

     — refine procedures for handling enforcement actions generally;
        and

     -- form litigation teams and assign case preparation and
        responsibilities where the Region has identified matters
        which require a litigation enforcement response.

     Once the Regional Administrator determines that a case has
a strong potential for referral, the Region will form a case
development team consisting of the lead Agency attorney and
representatives from the Regional program staff and DOJ. 3/ The
goal of this team is to reach a resolution of the enforcement
action, based on the technical support of the Regional Administrator,
through negotiated settlement or final judgement in litigation.

     For each case, EPA will designate a lead Agency attorney.
As stated in the Hay 7, 1982 memorandum regarding reorganization
of the Office of Regional Counsel, the lead Agency attorney will
normally be a Regional attorney, but may be a Headquarters attorney
under some circumstances.  Section VII(B) of that memorandum
provides a more detailed discussion of circumstances in which a
Headquarters attorney might be assigned the Agency lead (for
example, in cases of overriding national significance or in some
cases in which the Agency is involved in enforcement and defensive
litigation).  The lead Agency attorney will coordinate case
development activities with DOJ.
3/  Headquarters program and Enforcement Counsel staff may participate
more actively in the case development process if precedential or
nationally significant issues are involved, especially under newly
developing programs.

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                              -18-


IX.  The Referral Process

     Consistent with the Administrator's September 15, 1981
memorandum, the Regional Administrator will initiate referrals
of enforcement cases in which settlement negotiations outside
the context of litigation either have been unsuccessful or are
otherwise inappropriate due, e.g^L, to the need to halt the
violation quickly.  The Regional Administrator initiates a
referral by forwarding a case to me with a recommendation to
refer that case to DOJ for litigation.  The Regional Counsel's
formal concurrence shall ensure that the initiated referral is
legally sufficient and consistent /with national guidance.  Early
involvement by appropriate EPA and DOJ staff, through the case
development procedures articulated in Section VIII above, is
important to the successful development of a judicial referral.
This early involvement will reduce the need for development and
review of documents in a formal referral package late in the
case development process.  Regional Administrators are responsible
for supporting this practice within their programs.

     As the initiator of the referral, the Regional Administrator
is ultimately responsible for the completeness and quality of the
development of the forwarded case.  This includes conformance with
all applicable national guidance and policies established by OLEC
and by the appropriate program office.

     Inasmuch as a case developed for referral can require the
drafting of important legal documents (e.g.  complaint, consent
decree, memoranda on points of law), it is highly advisable that
the Regional Administrator assign the actual task of preparing
those documents in conjunction with DOJ to the lead Agency attorney
on the litigation team.  A case developed for referral will rely
upon technical information and support from the Regional program
office and, where appropriate, from the Headquarters program
office.  This method is likely to ensure the legal sufficiency
of the case when the Regional Administrator initiates the referral.
Every request for judicial action must have the formal concurrence
of the Regional Counsel before the Regional Administrator initiates
referral by forwarding the case to Headquarters.

     To support a referral, the Regional Administrator must be
in a position to identify all technical assistance needed to
bring the case to successful completion.  Jhe act of forwarding
the case to Headquarters for referral constitutes the Regional
Administrator's commitment to ensure that this technical assistance
and technical support which may later be identified is available
when needed.

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                               -19-
X.  Headquarters Review of Case Development

     Under the June 1977 EPA/DOJ Memorandum of Understanding",
the Associate Administrator for Legal and Enforcement Counsel
is responsible for formally transmitting a civil referral to the
DOJ. 4/  Headquarters attorneys will conduct a limited final
legal~review on my behalf of cases forwarded for referral from
the Regions primarily to ensure completeness, consistent applica-
tion of law and enforcement policy, and appropriate development
of legal precedent.  For some cases involving important precedent
or issues of overriding national significance, Headquarters
attorneys also may be assigned a more active role in the case
development process.              /

     Again, Regional Counsel lead attorneys must undertake
early consultation with Headquarters and DOJ attorneys through the
case development team format as cases are being prepared.  In
this manner, case development teams can identify precedential
or nationally significant issues early and can reduce the likeli-
hood that DOJ or the U.S. Attorney will raise concerns late in
the referral process regarding the advisability of pursuing
civil litigation.
4/  The term "Assistant Administrator for Enforcement"  in the
Memorandum was changed to "Associate Administrator for  Legal
and Enforcement Counsel" by letter of the Administrator to the
Attorney General, in order to reflect the Agency's new  organi-
zational structure.

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                             -20-


     Similarly, close coordination by the lead Agency attorney
with technical personnel in the Regional program office (who
in turn should work closely with the Headquarters program office)
and any NEIC participants is also essential in order to achieve
early agreement on appropriate remedies, schedules/ and other
technical aspects of the case prior to referral.  Headquarters
program review of case development on behalf of Assistant
Administrators also will begin early in the process to identify
and resolve problems quickly and will focus on ensuring technical
completeness and appropriate application of program policy.  In
this area as well, Headquarters program officials may be assigned
a more active role in cases involving important precedent, overrid-
ing national program significance', or activity in more than one
region.  Headquarters program officials must ensure that they
perform their review function in a manner that avoids impeding
the expeditious referral of cases to DOJ once the Regional
Administrators have forwarded those cases to Headquarters.

XI.  After EPA Refers a Case to DOJ

     Following the referral of a case to DOJ, the lead Agency
attorney on the case will be responsible for coordinating responses
to all requests for supplemental information by the Department
or by the U.S.  Attorney's Office.  Program office staff will be
responsible for providing needed technical support.  The lead
Agency attorney is responsible for keeping program officials and
other previously involved Agency attorneys apprised of case
developments after referrals.

XII.  Negotiations

     The Regional Administrators will normally be responsible for
ensuring a sound technical and scientific basis for resolutions of
identified violations.  Prior to EPA referring an enforcement case
to DOJ, the Regional Administrators normally will be responsible
for directing or conducting informal settlement negotiations (subject
to the program-specific guidance which will be forthcoming).  The
Regional Counsel should be present at discussions in which outside
parties are represented by counsel.  Once the case has been referred,
DOJ normally is responsible for managing settlement discussions,
with the active participation of Regional personnel, in the context
of an attorney-client relationship.  Regional Counsels will make
every effort to identify resources needed for negotiations
in close consultation with program managers.

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                               -21-


     The Administrator has affirmed that I urge OLEC staff at
Headquarters and in the Regions to caution their "client" program
offices and others within the Agency about the sensitivity of
contacts with persons or firms that are involved in cases
referred to DOJ for filing.  There are many matters unrelated
to a specific enforcement action—e.g., processing of grants,
development of rules—in which a party may be interested and
which may be discussed without counsel present.  Care should be
taken, however, to determine the purpose(s) for which meetings
are sought by defendants and potential defendants so that appro-
priate arrangements can be made.  ,If matters related to a pending
case are raised by such persons during the course of a meeting
arranged for other purposes, any discussion of the case should
be interrupted and continued only after consultation with an
Agency attorney assigned to the case.

XIII.  Enforcing Consent Decrees and Final Orders

     Following the entry of a consent decree or final order,
compliance assessment is the responsibility of the Regional
Administrator, in the same way that the Regional Administrator
assesses compliance with statutory or regulatory requirements.

     In the event that a source violates a consent decree or order,
^motion for contempt or modification of the decree may be appro-
priate.  The decision to file for contempt or to negotiate a
modification will normally be the Regional Administrator's,
based upon the advice of the Regional Counsel and subject to
national guidance issued by the responsible Assistant Administrator
or OLEC.  Since the violation would concern a filed case and a
consent decree modification would involve a court order, DOJ and
the U.S. Attorney's Office should be given the opportunity to
take part in any of those discussions.  Negotiations with affected
parties should be conducted in the manner described previously
in this document (with an opportunity for Assistant Administrator
participation).  All modifications to consent decrees must be
approved in the same manner as the original consent decrees.

XIV.   Appeals

     General Counsel attorneys serve as the Agency's principal
defense lawyers and are responsible for any matter before Courts of
Appeals, including appeals of decisions re-la ting to enforcement
actions.  In such cases, the lead General Counsel attorney will
continue to be determined in accordance with a memorandum of
December 14, 1979 on the subject from the Deputy General Counsel.
The lead Agency attorney on the appeal will be responsible for

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                              -22-


working closely with the lead Agency attorney appointed to the
original enforcement case, as well as the appropriate Regional and
Headquarters program office personnel.  The lead Agency attorney
originally appointed to an administrative enforcement action
which is subsequently appealed normally will serve as co-counsel
with the General Counsel attorney in the Court of Appeals.

    'With regard to hearings before an administrative law judge
or appeals of administrative actions to the Administrator, the
Regional Counsel will normally provide legal representation for the
Agency on matters arising in the Regions, including permit conditions
and administrative civil penalty decisions.  However, in accordance
with the OLEC memorandum of May 7, 1982, on regional reorganization,
when issues of overriding national significance exist, or when
Headquarters initiates the administrative action, the lead nay be
assigned to a Headquarters attorney, upon the agreement of the
Regional Counsel and the appropriate supervisor in the Enforcement
Counsel's office.

XV.  Communications/Press Relations

     Throughout the enforcement process, the Regional Administrator
is responsible for ensuring that the appropriate information
flows openly and smoothly to all parties with a legitimate interest
in the final outcome.  Once a matter is referred to DOJ, however,
all Agency personnel should exercise care in releasing any infor-
mation or statement, including press releases, in connection with
the matter without previously consulting DOJ.  The lead Agency
attorney is responsible for the smooth and complete flow of
information to supporting attorneys within the Agency and in DOJ.


     The Regional Administrator and the Regional program managers
are responsible for communicating with States, except if a State
is a party to a filed judicial action.  In that case, the U.S.
Attorney and DOJ should participate in or be consulted about any
such communications.

     Likewise, the Regional Administrator will normally be
responsible for handling any press inquiries or releases concerning
an enforcement action.  The Regional Counsel is available to provide
legal advice on the handling of those matters.  Upon occasion,
such inquiries or press releases may be handled best by the Enforce-
ment Counsel or the appropriate Assistant Administrator, but only
when all parties and the press office agree that this procedure is
the best course of action.  For filed actions, DOJ or the U.S.
Attorney's office should be consulted before interacting with the
press.

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                               -23-
     In the event of inquiries from Congress, OLEC will work
closely with the Regional Administrators, the appropriate
Assistant Administrator, and the Congressional Liaison Office
prior to releasing any information or making any public
statements.

XVI.  Reservation

     The policy and procedures set forth herein, and internal
office procedures adopted pursuant hereto, are intended
solely for the guidance of government personnel.  They are
not intended to, do not, and may hot be relied upon to create
a right or benefit, substantive or procedural, enforceable
at law by a party to litigation with the United States
Environmental Protection Agency.  The Agency reserves the
right to take any action alleged to be at variance with
these policies and procedures or not in compliance with
internal office procedures that may be adopted pursuant to
these materials.

XVII.  Delegation of Authority

     Through a memorandum issued as a cover to this document,
the Administrator is delegating to me the authority to construe,
interpret or amend the guidance prescribed here.  She similarly
has delegated to me the authority for issuing any follow-up
guidance for implementing the general operating procedures
prescribed here, unless the follow-up guidance is limited to
matters for which a single Assistant Administrator or Regional
Administrator is solely responsible.  Of course, I shall work
closely with affected Assistant or Regional Administrators
in deciding how to exercise these delgated authorities, and
in appropriate cases shall issue national guidance jointly with
the relevant national program managers.

XVIII.  Superseded Policy

     These procedures supersede the policies and procedures issued
by the Enforcement Counsel on February 26, 1982, which are revoked
in their entirety.

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          UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                        WASHINGTON, DC 20460
                          SEP   ?
                                                        OFFICE OF
                                                 LEGAL AND ENFORCEMENT COUNSEL
MEMORANDUM

SUBJECT:  Case Referrals for Civil-Litigation
FROM:     Michael A. Brown  vJJJv^^-*-^
          Acting Enforcementcounsel
            Deputy General Counsel

TO:       Regional Counsels
     A review of our recent enforcement referrals for proposed
civil litigation JL/ and conferences with the Department of Justice
have revealed that certain points relating to case development
and litigation activities must again be emphasized and some new
"ground rules" should be set forth.  This memorandum is intended
to supplement the General Operating Procedures memorandum governing
EPA's enforcement activity which was issued on July 6, 1982.

Quality of Referrals

     I want to stress that a case should not be forwarded to
Headquarters for referral to DOJ unless you fully intend that the
case should be filed.  Sending a case forward merely to get credit
for the case is a waste of your time and ours.  We want to
concentrate on properly developed cases that will actually be
filed, not merely paper to be referred to DOJ that results in no
action.  In addition, referrals to Headquarters and DOJ for the
purpose of applying pressure on a party to settle should not be
made unless the Regional Office is willing to carry the case
through a suit.

     My review of the past numbers of referrals by EPA to DOJ
compared to the actual number of cases that are filed reveals
that past practices resulted in a considerable disparity between
the two numbers.  You, and especially the Regional Administrator,
should be prepared to support a case that is referred to
Headquarters all the way through trial.
     This memorandum applies only to referrals for civil litigation,
     Guidance for referral of cases for criminal proceedings will
     be addressed in a subsequent memorandum.

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                               -2-
Case Development Process

     We expect that DOJ and Headquarters' involvement in the case
development process will continue to be intensive in hazardous
waste and Superfund cases in the future.  This is because these
are new areas of the law, without much precedent.  In the more
mature areas (air and water cases) we expect the case development
process to be more informal.  For example, in many cases the
coordination between Headquarters, DOJ attorneys and Regional
attorneys may be accomplished by infrequent meetings and telephone
contacts.

     The need for Headquarters Enforcement Counsel or DOJ
involvement in a case at an early stage depends upon sound
judgment.  If the case, even though in a mature program, presents
national issues, contains novel problems, requires extra support,
or has other areas in which you or your attorneys would like
support from or the views of Headquarters, the Department of
Justice or both, we will provide it.  However, we do not want
to make the case development process a burden on the Regions in
air and water cases which do not require it.

     It is essential that Regional attorneys apprise Headquarters
and DOJ counsel of new cases which are under development as soon
as sufficient information is acquired about the cases to enable a
determination to be made that they have potential for referral.
This is necessary in order that the Regions, Headquarters and DOJ
can plan resource needs, litigation support and budgetary requests.
We anticipate that increased use of our computer system by the
Regional Offices will aid in the advance notification of emerging
cases.
Referral Package

     As the case development process, including early DOJ
involvement, becomes widespread, we will be able to significantly
reduce the supporting paperwork you send to EPA Headquarters to
accompany a referred case.  In order to achieve this result, it
is highly desirable for the Regional attorney to acquaint the
appropriate Headquarters and DOJ attorneys with developing cases
by telephone and at regional meetings at an early stage.  In any
event, as described in the following paragraph, certain basic
information in the form of a referral memorandum should accompany
the litigation report at the time the case is formally referred
to Headquarters, in addition to the more comprehensive litigation
report.

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                               -3-
     When a case is forwarded to Headquarters for referral to
DOJ, the referral memorandum, at a minimum, should include
identification of the potential defendants, a factual summary,
identification of issues, status of past Agency enforcement efforts,
and the names of Agency and DOJ attorneys who are involved in
the case, including the lead attorney.  This should be accompanied
by the litigation report, together with a copy of the relevant
papers in the case file and such other accompanying explanatory
memoranda or analyses as have been agreed to between the Regional
attorney, the Headquarters attorney and the DOJ attorney working
on the case.

     One particular need in a case referral is to identify the
problems that may exist with the case.  In the past many documents
forwarding cases to EPA Headquarters have been pure advocacy
documents.  By this I mean they stressed only the positive side
of a case.  However, once the case was referred to DOJ and work
began, problems that might complicate the prosecution of the case
would then be revealed.  In order to properly focus your resources
and ours, it is necessary that initial forwarding paperwork
include a description of all problems that may accompany the
prosecution of the case.  Further, if problems are identified
after the case has been forwarded to Headquarters, the referral
paperwork should be supplemented to include these problems.
Early involvement by Headquarters, and DOJ where appropriate,
should provide for early identification and resolution of such
problems.  Your credibility with Headquarters and EPA's credibility
with DOJ are not aided by selling a case that must be "unsold"
when reality sets in.


Lead Attorney

     The lead attorney responsibility establishes an accountable
party for the progress of the case.  It has become apparent that
many times the failure of a case to move forward is a direct
result of the lack of an identifiable lead attorney who bears
the responsibility for the progress of that case.  Responsibility
cannot be vaguely shared between two or three attorneys.  Someone
has to have the lead designation if for no other reason than to
act as a focal point, prescribe milestones, and make appropriate
reports.

     At such time as you begin the case development process there
should be a clear understanding between the Agency attorneys
about who will take the lead in the case development phase.
Ordinarily the lead attorney in the development phase will be a
Regional attorney.  However, in cases of national significance

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                               -4-
or cases without precedent, the lead attorney, even in the develop-
ment phase, may be an attorney from Headquarters or DOJ.  After
the case has been referred to DOJ., there should again be a conference
between the appropriate Regional, Headquarters and DOJ attorneys
to determine if the lead in the case should shift.  If so, the
new lead attorney should be designated and his/her identity
clearly understood by all parties to the case, including technical
support personnel.  When the case is filed, the lead responsibility
should again be agreed to by the attorneys and conveyed to all
other parties involved in prosecuting the case.  At all times,
the computer system should be kept current on the identity of
the lead attorney.

     Regardless.of who has the lead, the responsibility for the
initial" documentation of statutory violations and development of
supporting data that justifies referral of a case to DOJ for
litigation always rests with EPA attorneys.  In addition, I expect
that EPA attorneys will be responsible for developing and
maintaining a thorough understanding of the facts of the case,
the issues involved or which may be raised, Agency policies which
affect or may be affected by the case, and to serve as spokesperson
on the case development and litigation team for EPA's views.

     When a case is referred to the Department of Justice, the
Department will, in consultation with EPA, and in accordance with
the Memorandum of Understanding between the agencies, designate a
lead case attorney.  The DOJ lead attorney will be responsible
for and have authority to require development of case strategy
and tactics; evaluate the quality and quantity of evidence necessary
to prove the government's case; assign and coordinate responsibilities
to litigation team members, including technical personnel; and
insure that all necessary government personnel are fully informed
of case progress.  The lead attorney will also communicate as
the government's spokesperson with defendants; and undertake the
necessary case preparation to move the matter expeditiously to
trial.

     Generally, the lead attorney after referral of a case will
be from the Department of Justice or United States Attorneys
Office.  This is consistent with the Attorney General's statutory
responsibility for litigation involving the United States and
its Agencies and the Memorandum of Understanding.  On a case by
case basis EPA attorneys may be assigned lead responsibility.
When this occurs, the EPA attorney assigned lead responsibility
will be supervised by the Chief of the Environmental Enforcement
Section of the DOJ with respect to litigation matters.

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                               -5-
     It is essential that all litigation team members understand
their respective responsibilities and cooperate in the litigation
effort.  Experience demonstrates that cases which are actively
moved to trial provide a full opportunity for each attorney to
gain meaningful experience in litigation.  Without this support
our litigation effort cannot succeed.

     The computer system should at all times reflect the identity
of the lead case attorney.  In each case, EPA will designate an
EPA attorney who will continue to be responsible for coordinating
agency input.

Further Clarification

     I realize that this guidance does not prescribe exact
procedures for every conceivable situation.  However, I am looking
to you as Regional Counsels to exercise your best professional
judgment in supervising your Regional attorneys.  Please let me
know in those instances where attorneys from Headquarters and the
Regional attorneys are unable to reach agreement on the handling
of cases.  Further, the Headquarters Associate Enforcement Counsel
and I stand ready to help you in any dealings with DOJ, if
necessary.


Goal

     I want to emphasize that the goal of EPA is for expeditious,
efficient, and successful prosecution of our enforcement cases.
It does not matter who gets the credit or the lead; what does
matter is whether the cases are worth the time of all the parties
involved, are filed and prosecuted in a timely manner, and achieve
protection for the public and the environment.


cc: Robert M. Perry
    Steve Ramsey
    Associate Enforcement Counsels

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         UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                       WASHINGTON, DC X04«0
                     CCT I 2 JS82
                                               L*OAL AND CNFOMCCMENT COUNCCl.
MEMORANDUM

SUBJECT:  Criminal Enforcement priorities for the
          Environmental Protection Agency

FROM:     Robert M. Perry
          Associate Administrator

TO:       Regional Counsels, Regions I-X


     Criminal case development and referrals will constitute
an important component of EPA's overall enforcement effort.
The success of the criminal enforcement program will depend
on the Agency's ability to act with professionalism, and with
one mind, in identifying, investigating and referring cases
for criminal prosecution.

     To achieve this objective, our Criminal Enforcement
Division is currently recruiting a staff of 25 experienced
criminal investigators.  In addition, the Office of Legal
and Enforcement Counsel, working with the assistance and
guidance of EPA's media program offices, has developed the
attached "Criminal Enforcement Priorities" for the Agency.
These guidelines have been drafted so that the objectives
and interests of EPA's program offices are reflected in,
and furthered by, the Agency's criminal enforcement efforts.
In addition, the implementation of these guidelines will
guarantee that the legal and investigative resources of the
Office of Legal and Enforcement Counsel, and the technical
resources of EPA's program offices, are focussed on cases
of the most serious environmental misconduct.

     The attached Criminal Enforcement Priorities are effective
immediately, and replace any existing Agency guidance on this
subject.  Please ensure that these priorities are circulated
with the appropriate Regional program offices.  Any questions
on these priorities can be directed to Peter Beeson, Director,
Criminal Enforcement Division, Office of Legal and Enforcement
Counsel (FTS 382-4543).

Attachment    X


cc:  Assistant Administrators
     Regional Administrators, Regions I-X

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CRIMINAL ENFORCEMENT PRIORITIES
     United States Environmental
        Protection Agency
     Effective Date:

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                 TABLE OF CONTENTS
PART I:  THE DECISION TO PURSUE CRIMINAL
         SANCTIONS	1

     A.  The Scienter Requirement*...............I
     B.  The Nature and Seriousness
         of the Offense.	.2
     C.  The Need for Deterrence.................3
     D.  Compliance History of the
         Subject(s)	3
     E.  The Need for Simultaneous
         Civil or Administrative
         Enforcement Action......................3

PART Us  CRIMINAL ENFORCEMENT
          PRIORITIES	5

      A.  Investigative Priorities:
          Resource Conservation and Recovery Act
          (RCRA)	5
          1.  Knowing Endangerment	5
          2.  Illegal Transportation and
              Disposal of Hazardous Waste...	6
          3.  Falsification of RCRA Records	6
          4.  Destruction, Concealment or
              Alteration of RCRA Records	...6
       B. Investigative Priorities:
          Comprehensive Environmental Response,
          Compensation and Liability Act
          (Superf und)	6
          1.  Failure to Notify of a Release
              of a Hazardous Substance	6
          2.  Destruction or Falsification
              of Super fund Records	7
       C. Investigative Priorities:
          Clean Water Act (CWA)	7
          1.  Violations of the NPDES
              Permit Program	7
          2.  Falsification of CWA Records  *
              and Monitor Tampering	...7
          3.  Unpermitted Discharges	.....8
       D. Investigative Priorities:
          The Clean Air Act (CAA)	B
          1.  Violations of State
              Implementation Plans	8
          2.  Violations of Hazardous...,
              Air Pollutant Standards	8
          3.  Falsification of CAA Records
              and Monitor Tampering	9

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E.  Investigative Priorities:
    The Toxic Substances Control
    Act (TSCA)	.9
    1.  Falsification of Data Required
        under a Testing Rule or the
        Premanufacture Notification
        Program	9
    2.  Failure to Report Substantial
        Risk Information	.......9
    3.  Violation of PCB or Dioxin
        Regulations	.9

F.  Investigative Priorities:
    The Federal Insecticide/ Fungicide
    and Rodenticide Act (FIFRA)	10
    1.  Failure to Report Information
        on the Unreasonable Adverse
        Effects of a Registered
        Pesticide	10
    2.  Falsification of FIFRA
        Records	10
    3.  Violation of Suspension or
        Cancellation Orders.	10
    4.  Violation of Stop Sale
        Orders	10
    5.  Unlawful Uses of Pesticides	11
    6.  Illegal Distribution of
        Unregistered Pesticides	11

G.  Investigative Priorities:
    The Marine Protection, Research,
    and Sanctuaries Act (MPRSA)	11

H.  Investigative Priorties:
    Willful Contempt of Environmental
    Consent Decrees	...11

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                     PREFACE
     A broad range of potential overlap exists among
the criminal, civil and administrative enforcement options
provided by most environmental statutes.  Theoretically
at least, the Agency is free to pursue criminal sanctions
in every situation presenting evidence supporting the
requisite elements of proof.

     As a matter of enforcement policy and resource
allocation, such an unrestrained use of criminal sanctions
is neither warranted nor practical.  The commitment of
investigative and technical resources necessary for the
successful prosecution of a criminal case is high.  More
importantly, a criminal referral for investigation or
prosecution can entail profound consequences for the subject
of the referral, and should reflect a considered, institutional
judgment that fundamental interests of society require the
application of Federal criminal sanctions to a particular
set of facts.  Accordingly, criminal referrals will be
confined to situations that—when measured by the nature of
the conduct, the compliance history of the subject(s)
or the gravity of the environmental consequences—
reflect the most serious cases of environmental misconduct.

     This memorandum provides guidelines for the use of
criminal sanctions under all environmental statutes.
It is divided into two parts.  Part I sets out several
general factors that Agency personnel should consider
in determining whether a criminal referral is warranted
in a specific situation.  These factors will apply with
equal force to referral decisions under each of the Agency's
statutes, thereby ensuring cross-media consistency in
the use of this enforcement option.  Part I has also been
drafted so as to reflect guidelines for the exercise
of Federal prosecutorial discretion found in the Justice
Department's Principles of Federal Prosecution.

     Following this general overview, Part II establishes
investigative priorities in each of the Agency's program
areas.  The purpose of this section is to focus the limited
criminal investigative resources of the Office of Legal and
Enforcement Counsel on the most serious cases of environmen-
tal misconduct.  These media-specific  priorities will be
fluid, and will be modified to reflect additional regulatory
programs in the Agency as they develop.  In addition, the
creation of investigative priorities does not preclude the
possibility of a criminal referral for conduct not falling
within these priorities.  Each case will be considered on an
individual basis.  Further—to emphasize the obvious—these
guidelines relate only to the use of criminal sanctions, and
do not reflect administrative or civil enforcement priorities.

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                       -2-
     These guidelines, and internal office procedures
adopted in accordance with these guidelines,  are not
intended to, do not, and may not be relied upon to
create a right or benefit—substantive or procedural—
enforceable at law by a party to litigation with the
United States.  Any attempt to litigate any aspect of
these guidelines should be brought immediately to the
attention of the Criminal Enforcement Division,  Office
of Legal and Enforcement Counsel, EPA Headquarters.

     These guidelines are effective immediately, and
replace any existing guidance on criminal enforcement
priorties within the Agency.

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                       -1-
PART Ji  THE DECISION TO PURSUE CRIMINAL SANCTIONS

     This Agency's choice among its varying enforcement
options-—civil, administrative and criminal—is,  and must
remain, a discretionary judgment that balances essentially
subjective considerations.  No litmus paper test  exists
that will reliably distinguish cases falling into each
category.  This section discusses the varying factors,
or considerations, that should be addressed as EPA reaches
an institutional decision on the appropriate enforcement
option to employ in addressing a specific violation.
In essence, it is a discussion of those factors that
will normally distinguish a criminal case from all the
others.

A.  The Scienter Requirement

     An individual who engages in conduct prohibited
by statute or regulation can be prosecuted civilly or
administratively without regard to the mental state
that accompanied the conduct.  Criminal sanctions, on the
other hand, will ordinarily be limited to cases in which
the prohibited conduct is accompanied by evidence of
"guilty knowledge" or intent on the part of the prospective
defendant(s).  Referred to as the scienter requirement, this
element of proof exists under virtually every environmental
statute enforced by the Agency.I/  For example, falsification
of records under the Resource Conservation and Recovery Act
must be done "knowingly,"  (42 U.S.C. §6928(d)(3)); violation
of hazardous air pollutant standards under the Clean Air Act
must be done "knowingly," (42 U.S.C. §7413(c)(1)(c)); and
failure to establish or maintain records required under the
Toxic Substances Control Act must occur "knowingly or
willfully," 15 U.S.C. §2615(b).
I/  One exception to this general rule is the Refuse
Act, 33 U.S.C. §407, which has generally been interpreted
as a "strict liability" statute.  See, e.g. United States
v. White Fuel Corporation, 498 F.2d 619 (1st Cir. 1974).   In
addition, a prosecution for illegal discharges under the
Clean Water Act can be based on negligent or willful conduct,
33 U.S.C. §1319(c)(l).  "Negligence" is not, strictly
speaking, a form of scienter.

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                      -2-
     The requirement to prove a culpable mental state,
as well as a prohibited act, is certainly the clearest'
distinction between criminal and civil enforcement actions.
Special care will be taken both in investigations,
and in drafting criminal referral packages,  to assemble
and highlight evidence available to meet the specific
statutory acienter requirement.

B.  The Nature and Seriousness of the Offense

     Resources currently available to EPA for criminal
case development are limited.  In addition,  this Agency
is only one of dozens that are making demands on the limited
prosecutorial staffs of the Justice Department.  As a
matter of resource allocation, therefore, as well as
enforcement philosophy, EPA will investigate and refer
only the most serious forms of environmental misconduct.

     Of primary importance to this assessment is the extent
of environmental contamination or human health hazard
that resulted from, or was threatened by, the prohibited
conduct.  This determination depends in turn on consider-
ations such as the duration of the conduct;  the toxicity
of the pollutants involved? the proximity of population
centers? the quality of the receiving land,  air or water? the
amount of Federal, State or local cleanup expenditures? and
public sentiment supporting strong enforcement action
in response to a specific situation.

     Also of significance in assessing the seriousness
of the illegal conduct is the impact—real or potential—on
EPA's regulatory functions.  This factor is of particular
importance in cases of the falsification or concealment
of records, reports or information.  For example, even if a
technical falsification case can be made, criminal sanctions
may not be appropriate if the distortion of information
could not reasonably have been expected to have a significant
impact on EPA's regulatory process or decision-making.
Where the materiality of the falsification is clear,
however, criminal sanctions should be pursued.  For example,
falsification activity might cause EPA to register a pesticide
with demonstrated carcinogenic potential; to omit effluent
limitations for toxic pollutants in an NPDES permit; or to
postpone necessary regulatory action.  In such situations,
the need for criminal sanctions should be considered.

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                        -3-
C.  The Need for Deterrence

     Deterrence of criminal conduct by a specific individual
(individual deterrence) or by the community at large
(general deterrence) has always been one of the primary
goals of the criminal law.  Where the offense is deliberate
and results in serious environmental contamination or
human health hazard, the need to achieve deterrence through
the application of strong punitive sanctions will almost
always exist.

     The goal of deterrence may, on occasion, justify a
criminal referral for an offense that appears relatively
minor*  This would be true, for example, for offenses
that—while of limited importance by themselves—would
have a substantial cumulative impact if commonly committed.
This might also be true when addressing violations by an
individual with an extended history of recalcitrance and
noncompliance.

D.  Compliance History of the Subject(s)

     The compliance history of the subject(s) of a potential
criminal referral is relevant, and should be considered in
determining the appropriateness of criminal sanctions.  As a
general rule throughout Federal criminal enforcement, first
offenders will be treated less severely than recidivists.
Stated alternatively,  criminal sanctions become more
appropriate as the incidents of noncompliance increase. The
occurrence of past enforcement actions against a company,  or
the failure of civil/administrative enforcement, is certainly
not a prerequisite to a criminal referral.  However, a
history of environmental noncompliance will often indicate
the need for criminal sanctions to achieve effective individual
deterrence.

E.  The Need for Simultaneous Civil or Administrative
    Enforcement Action

     Simultaneous civil and criminal enforcement proceedings
are legally permissible, United States v. Kordel, 397
U.S. 1, 11 (1970), and on occasion are clearly warranted.
However, separate staffs will be appointed with the
initiation of a grand jury investigation, if not before.
Further, the pursuit of simultaneous proceedings provides
fertile grounds, for legal challenges to one or both
proceedings th>t, even if unsuccessful, will consume
additional time and resources.  Thus, parallel proceedings
should be avoided except where clearly justified.

     In this regard, it should be noted that some of
the goals of a criminal prosecution, including a degree

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                     -4-
of deterrence and punishment, can be achieved through
a civil action that secures substantial civil penalties
in addition to injunctive relief.  Moreover,  recent exper-
ience indicates that while some cases may result in periods
of incarceration, criminal sentences will often be limited
to monetary fines and a probationary period.   In light of
this reality, the use of the additional time  and resources
necessary to pursue a criminal investigation—-as well as  a
civil enforcement action—is often not justified.

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                   -5-
PART Hi  CRIMINAL ENFORCEMENT PRIORITIES

     The previous section has discussed the general
considerations that will guide this Agency's decisions
on the investigation and referral of criminal cases.
Part II details the substantive investigative priorities
that will be pursued in the Office of Legal and Enforcement
Counsel's developing criminal enforcement program.  The
priorities are listed by statute.  The order of listing is
random, and is not. intended to'achieve further ranking
either within each statute or on a cross-media basis.
Unless otherwise stated below, all listed categories of
conduct are considered equally significant and worthy of
investigation within the constraints of our limited criminal
investigative resources.

     The criminal investigative staff of the Office of
Legal and Enforcement Counsel, acting in partnership
with the legal and technical staffs of the Agency, will
focus criminal enforcement efforts in the future primarily
on cases falling within the categories listed below.  The
issuance of these priorities is not, however, intended to
preclude the possibility of a criminal referral in other
cases.2/  As was indicated previously, each case will be
considered on its own merits.

A.  Investigative Priorities;  Resource Conservation
    and Recovery Act (RCRA):

    1.  Knowing Endangerment

    Section 3008(e) of RCRA, 42 U.S.C. §6928(e), establishes
the crime of "knowing endangerment."  The provision carries
maximum penalties of up to five years of imprisonment
and a $1,000,000.00 fine, and reflects a Congressional
mandate to pursue strong criminal sanctions for knowing,
life-threatening conduct that violates RCRA statutory
prohibitions or interim status standards and regulations.
RCRA and its legislative history indicate that the "knowing
endangerment" provision is intended to apply only in
the most serious instances of environmental misconduct.
Where the elements of proof can be met, however, EPA
will give a high priority to the investigation, referral and
prosecution of "knowing endangerment" cases.
2_/  For example, because the enforcement provisions of the Safe
Drinking Water^Act, 42 U.S.C. §§300f et. seq., contain compara-
tively mild monetary penalties—and no potential terms of
incarceration--the statute is not listed as a criminal enforcement
priority.  This does not, however, preclude the possibility of
a criminal referral under the Safe Drinking Water Act to address
aggrevated cases of non-compliance.

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                        -6-
     2.  Illegal Transportation and Disposal of Hazardous
          Waste

     Section 3008(d)(l-2) of RCRA, 42 U.S.C. §6928(d)(1-2),
carries felony penalties of two years of imprisonment and
a $50,000.00 fine for the knowing transportation of
hazardous wastes to an unpermitted facility (Section
3008(d)(l)) and the knowing disposal of hazardous wastes
without obtaining a permit (Section 3008(d)(2)).  Both
provisions are potentially applicable to midnight dumping
in its various forms, i.e., in abandoned sites, company
yards, open fields or waterways, or unpermitted waste
disposal facilities.  A high investigative priority
will be placed on illegal transportation or disposal
activities that result in, or threaten, serious environ-
mental contamination or human health hazard.

    3;  Falsification of RCRA Records

    Section 3008(d)(3) of RCRA, 42 U.S.C. §6928(d)(3),
carries misdemeanor penalties of one year of imprisonment
and a $25,000.00 fine for the knowing falsification
of material information in records "maintained or used
for purposes of compliance" with RCRA.   Emphasis will be
placed on falsification activity that has—or could reasonably
be expected to have—a significant impact on EPA's regulatory
process or decision-making.

    4.  Destruction, Concealment or Alteration of RCRA
        Records

    Section 3008(d)(4) of RCRA, 42 U.S.C. §6928(d)(4),
carries misdemeanor penalties of one year of imprisonment
and a $25,000.00 fine for incidents of knowing destruction,
concealment or alteration of records maintained under
RCRA regulations.  As in falsification cases, emphasis
will be placed on conduct that has—or could reasonably
be expected to have—a significant impact on EPA's
regulatory process or decision-making.

B.  Investigative Priorities:  Comprehensive Environmental
    Response, Compensation and Liability Act (Superfund);

    1.  Failure to Notify of the Release of a Hazardous
        Substance

    Section 10$(b)(3) of Superfund, 42 U.S.C. §9603(b)(3),
carries misdemeanor penalties of one year of imprisonment

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                     -7-
and a $10,000.00 fine for failure to notify the appropriate
Federal agency of a release of a hazardous substance
in amounts equal to or greater than those determined
pursuant to Section 102 of Superfund.  The Agency will
place a high investigative priority on cases where the
"release" results in, or threatens, significant environmental
contamination or human health hazard.

    2*  Destruction or Falsification of Superfund Records

    Section 103(d)(2) of Superfund, 42 U.S.C. §9603(d)(2),
carries misdemeanor penalties of one year of imprisonment
and a $20,000.00 fine for the knowing destruction or falsi-
fication of specified Superfund records.  Investigative
priority should be placed on conduct that has—or could
reasonably be expected to have—a significant impact
on EPA1s regulatory process or decision-making.

C.  Investigative Priorities;  Clean Water Act (CWA);

    1.  Violations of the NPDES Permit Program

    Section 309(c)(l) of the CWA, 33 U.S.C. §1319(c)(l),
carries misdemeanor penalties of one year of imprisonment
and a $25,000.00 fine for the willful violation of conditions
or limitations in NPDES permits issued by the Administrator
or a State.  The NPDES permit program is a mature regulatory
scheme and the primary mechanism for monitoring and controlling
water pollution under the CWA.  The Agency will place a high
investigative priority on willful NPDES permit violations
that result in, or threaten, significant environmental
contamination or human health hazard.

   .2.  Falsification of CWA Records and Monitor Tampering

    Section 309(e)(2) of the CWA, 33 U.S.C. §1319(c)(2),
establishes misdemeanor penalties of six months of imprison-
ment and a $10,000.00 fine for knowing falsification of
records and for tampering with monitoring devices "required
to be maintained" under the CWA.  Investigative priority
should be placed on cases in which the falsification
or tampering has--or could reasonably be expected to
have—a significant impact on EPA's regulatory process
or decision-making.

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                           -8-
    3.  Unpermitted Discharges

    Section 301 and 309(c)(l) of the CWA,  33 U.S.C.  §§1311,
1319(c)(l)), establish misdemeanor penalties of one  year of
imprisonment and a $25,000.00 fine for willful discharges
into navigable waters without an NPDES or "dredge and fill"
permit.3j  A high investigative priority will be placed
on willful, unpermitted discharges that cause, or threaten,
significant environmental contamination or human health
hazard.

D.  Investigative Priorities;  The Clean Air Act (CAA)i

    1.  Violations of State Implementation Plans

    Section 113(c)(l)(A) of the CAA, 42 U.S.C. §7413
(c)(l')(A), carries misdemeanor penalties of one year of
imprisonment and a $25,000.00 fine for knowing violations
of State implementation plans.  SIPs are the cornerstone
of a well-established and mature regulatory program  and
constitute the CAA's primary mechanism for implementing
and enforcing air quality standards for criteria pollutants.
A high investigative priority will be placed on cases
of knowing violation of SIP limitations that result
in, or threaten, significant environmental contamination
or human health hazard.

     2.  Violations of Hazardous Air Pollutant Standards

     Section 113(c)(l)(C) of the CAA, 42 U.S.C. §7413
(c)(l)(C), establishes misdemeanor penalties of one  year
of imprisonment and a $25,000.00 fine for knowing violations
of standards for hazardous air pollutants.  A high invest-
igative priority will be placed on knowing violations
of these standards that result in, or threaten, signi-
ficant environmental contamination or human health hazard.
3/  Also applicable are the provisions of the Refuse Act,
3"3 U.S.C. S407, which establish misdemeanor penalties of
one year of imprisonment (including a 30-day minimum sentence)
and a $2,500.00 fine.

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                        -9-
    3.  Falsification of CAA Records and Monitor Tampering

    Section 113(c)(2) of the CAA, 42 U.S.C. §7413 (c) (2),-
establishes misdemeanor penalties of six months of imprison-
ment and a $10,000.00 fine for knowing falsification
of records and for tampering with monitoring devices
"required to be maintained" under the CAA.  A high invest!-.
gative priority will be placed on cases in which the
falsification or tampering has—or could reasonably
be expected to have—a significant impact on EPA's
regulatory process or decision-making.

E.  Investigative Priorities;  The Toxic Substances Control
Act (TSCA)*

     1.  Violations of Section 4 Testing Rules or the
Section 5(b) Premanufacture Notification Program

     Sections 15(1) and 16(b) of TSCA, 15 U.S.C. §§2614(1)
and 2615(b), establish misdemeanor penalties of one year of
imprisonment and a $25,000.00 fine for knowing or willful
violations of any rule promulgated under Section 4 or any
requirement prescribed by Section 5 of TSCA.  A high
investigative priority will be placed on violations
that have a significant impact on the Agency's ability to
act under Section 4(f)(l), 15 U.S.C. §2603(f)(l), and on
situations of falsified test data submitted pursuant to
Section 5(b), 15 U.S.C. §2604(b), and the premanufacture
notification program.

     2.  Failure to Report Substantial Risk Information

     Sections 8(e), 15(3)(B) and I6(b) of TSCA, 15 U.S.C. §§2607(e),
2614(3)(B) and 2615(b), establish misdemeanor penalties of one
year of imprisonment and $25,000.00 fine for knowing or willful
failure to submit information to EPA which reasonably supports
the conclusion that a chemical substance or mixture
manufactured, processed, or distributed in commerce presents
a substantial risk of injury to health or the environment.
A high investigative priority will be placed on all violations
of this reporting requirement.

     3.  Violation of PCS or Dioxin Regulations

     Sections 15(1)(C) and 16(b) of TSCA, 15 U.S.C. §§2614(1)(C)
and 2615(b), establish misdemeanor penalties of one year of
imprisonment apd a $25,000.00 fine for knowing or willful

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                        -10-
violations of rules issued under Section 6 of TSCA.
The Agency has issued regulations governing polychlori-
nated biphenyls and the disposal of dioxin-contaminated
pesticide wastes.  A high investigative priority will
be placed on knowing or willful violations of these
regulations that result in, or threaten, significant
environmental contamination or human health hazard.

F.  Criminal Enforcement Priorities:  The Federal
    Tnsecticide, Fungicide and Rodentieide Act (FIFRA);

     1.  Failure to Report Information on the Unreasonable
         Adverse Effects of a Registered Pesticide

     Section 14(b) of FIFRA, 7 U.S.C. Il361(b),  establishes
misdemeanor penalties for the knowing violation of any
provision of the Act.  Section 12(a)(2)(N) provides  that
it is unlawful to fail to submit information required by
Section 6(a)(2).  This section requires a registrant to
report-to EPA any information regarding unreasonable
adverse effects on the environment which the registrant
has after the time of registration.  A high investigative
priority will be placed on knowing violations of this
reporting requirement.

     2.  Falsification of FIFRA Records

     Sections 12(a)(2)(M) and 14(b) of FIFRA, 7 U.S.C.
§§136j(a)(2)(M) and 1361(b), establish misdemeanor penalties
for the knowing falsification of specified records maintained
or filed under FIFRA, including registration data.  A high
investigative priority will be placed on falsification
activity that has—or could reasonably be expected to
have—a significant impact on EPA's regulatory process
or decision-making.

     3.  Violation of Suspension or Cancellation Orders

     Sections 12(a)(2)(J), 12(a)(2)(K) and 14(b) of  FIFRA,
7 U.S.C. §§136j(a)(2)(J), 136j(a)(2)(K) and 1361(b), establish
misdemeanor penalties for knowing violations of the  terms
of cancellation and suspension orders issued under Section
6 of FIFRA.  A high investigative priority will be placed on knowing
violations that result in, or threaten, significant  environmental
contamination or human health hazard.

     4.  Violation of Stop Sale Orders

     Sections lJr(a)(2)(I) and 14(b) of FIFRA, 7 U.S.C. §§136j
(a)(2)(I) and 1361(b), establish misdemeanor penalties for
knowing violations of the terms of stop sale orders  under
Section 13(a).  A high investigative priority will be placed

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                       -li-
on knowing violations that result in, or threaten,
significant environmental contamination or human
health hazard.

     5.  Unlawful Uses of Pesticides

     Sections 12(a)(2)(G) and 14(b) of FIFRA,  7 U.S.C.
§§136j(a)(2)(G) and 1361(b), establish misdemeanor penalties
for the knowing use of a pesticide in a manner inconsistent
with its labelling.  If referred by a State with primary
use enforcement responsibilities, a high investigative
priority will be assigned to misuse cases that result
in, or threaten, significant environmental contamination
or human health hazard.

     6.  Illegal Distribution of Unregistered Pesticides

     Sections 12(a)(l)(A) and 14(b) of FIFRA,  7 U.S.C.
§§136j(a)(1)(A) and 1361(b), establish misdemeanor penalties
for the knowing distribution, receipt etc. of an unregistered
pesticide.  The pesticide registration process outlined
in Section 3 of FIFRA, 7 U.S.C. Section 136(a), is the
cornerstone of EPA's program to monitor and regulate
the safety of pesticides.  A high investigative priority
will be placed on illegal transactions involving unregistered
pesticides that result in, or threaten, significant environ-
mental contamination or human health hazard.

G.  Investigative Priorities;  The Marine Protection^
    Research, and Sanctuaries Act (MPRSAj

     1.  Unauthorized Ocean-Dumping

     Section 105(b) of the MPRSA, 33 U.S.C. §1415(b),
establishes misdemeanor penalties of one year of imprisonment
and a $50,000.00 fine for the knowing violation of regula-
tions or permits issued under the ocean-dumping program.
The Agency will place a high investigative priority on
violations that result in, or threaten, significant environ-
mental contamination or human health hazard.

H.  Criminal Enforcement Priorities;  Willful Contempt
    of Environmental Consent Decrees

     18 U.S.C. §401(3) establishes criminal sanctions
for contempt of court resulting from "disobedience or
resistence to (the court's) lawful writ, process, order.

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                     -12-
rule, decree, or command."  The punishment,  which may
be by fine or imprisonment, is left to the discretion of
the court.  Historically, most of the EPA's civil litiga-
tion referrals have been settled in judicially-enforceable
consent decrees containing requirements for plant modifi-
cation, upgrading or installation of pollution control
equipment, and other forms of injunctive relief.   Insuring
compliance with the terms of these consent decrees will
be a significant element of this Agency's enforcement
program.  A high investigative priority will,  therefore,
be placed on incidents of willful or deliberate noncompliance
with the terms of environmental consent decrees that result
in, or threaten, significant environmental contamination
of human health hazard.

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r

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          UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
          -"-•••          WASHINGTON, D.C.204M
                          JAN
                                                      OTF1CS Of ENFORCEMENT
                                                        AND COMPLIANCE
                                                         MONITORING
MEMORANDUM
SUBJECT:  Functions and General Operating Procedures for
          the Criminal Enforcement Program
FROM:     Courtney M. Price  V^^jl f\ ,
          Assistant Administrator*^ O .

To:       Assistant Administrators
          General Counsel
          Inspector General
          Regional Administrators
          Regional Counsels

     I am pleased to transmit the final operating procedures
for the criminal enforcement program.  These procedures were
developed after extensive coodination with and comments from
the Regional offices and program staffs.  Your assistance has
been valuable in developing procedures that will accomodate
the interests and needs of the various offices of the Agency
and enhance our ability to conduct a rigorous and effective
criminal enforcement effort.  These procedures replace the
interim operating procedures which were issued in January,
1984.

     We have attempted in this guidance to recognize the
significant role that the Regional Counsels, Regional Program
Offices and the National Program Managers play in the criminal
enforcement program.  Active participation by all of us is
essential to its success.  I look forward to working closely
with you.

     Specific questions concerning this guidance may be
directed to Randall M. Lutz, Assistant Enforcement Counsel
for Criminal Enforcement (FTS 382-4543; E-Mail Box EPA2201).

Attachment

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         FUNCTIONS



            and



GENERAL OPERATING PROCEDURES



          for the



CRIMINAL ENFORCEMENT PROGRAM

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I. PURPOSE AND PHILOSOPHY

    These General Operating Procedures establish the process by
which suspected criminal activity is investigated and prosecuted
by the various agencies and officials involved.  In addition,
the functions, roles and relationships of these entities are
set forth under a variety of circumstances.  Because of the
need in each case to involve many geographically dispersed
professionals of various disciplines, this guidance emphasizes
a "team" approach to the investigation and prosecution of
criminal cases.  The procedures set forth below are not to be
rigidly interpreted.  It is recognized that certain cases may
require flexibility to proceed successfully.

II.  ROLES AND RELATIONSHIPS        *     '

    Most aspects of the Agency's enforcement program have
been delegated in significant measure to the Regional Offices.
The critical stage in development of the criminal enforcement
program, the need for specialized expertise and consistency,
however, dictate a centralized management approach for the
program.  Management of criminal legal and policy functions will
be focused at Headquarters, and the management of criminal
investigative functions will be focused at the National Enforce-
ment Investigations Center (NEIC).  It is understood that the
actual enforcement efforts in each case will require a team
effort which relies upon the contribution of Headquarters
and regional legal and technical staff and the Department of
Justice (DOJ).                      -

The Office of Enforcement and Compliance Monitoring (OECM);
The Assistant Administrate!:^foJTEnforcemehYand Comprfance
Monitoring

    The Administrator has delegated the responsibility to
develop and implement this program to the Assistant Administrator
for Enforcement and Compliance Monitoring (the Assistant Admini-
strator).  The Assistant Administrator maintains policy and
operational control for this program through the Associate
Enforcement Counsel for Criminal Enforcement and Special
Litigation (the Associate Enforcement Counsel) and the Director,
NEIC.

     Criminal enforcement policies and priorities are established
through the Assistant Administrator.  The Assistant Administrator
oversees the criminal investigating program, and reviews and
approves criminal referrals to DOJ.  The Assistant Administrator
ensures consistent and complementary use of the civil and
criminal enforcement authorities available to the Agency
(including, where appropriate, parallel proceedings), develops
and defends the budget, and allocates investigative resources
for the program.

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                              -2-


The Associate Enforcement Counsel for Criminal Enforcement and
Special Litigation                  ITZZZ           ~~~~~ -

    The Associate Enforcement Counsel, through the Assistant
Enforcement Counsel for Criminal Enforcement (the Assistant
Enforcement Counsel), is responsible for providing legal
guidance to the Agency on all aspects of the criminal enforcement
program, informing the Assistant Administrator of ongoing
case activity and articulating investigation and litigation
priorities by developing an enforcement strategy, together with
the HEIC, for the program.  To implement these responsibilities,
the Associate Enforcement Counsel through the Assistant Enforcement
Counsel, supervises the Criminal Enforcement Division.(CED)
which coordinates the team investigation and prosecution of
criminal cases with DOJ's Land and Natural Resources Division
end local federal and state agencies; provides legal advice and
support to the NElC's Office of Criminal Investigations (OCI)
and to the Regional Counsels; reviews all criminal referrals
to DOJ; participates in the prosecution of selected cases of
national importance or that exceed the resources of local or
regional offices; makes recommendations on the use of parallel
proceedings; develops training programs for agency legal and
regional program staff; issues legal updates of significant
decisions by the United States Supreme Court and other courts;
and reviews the legal soundness and consistency of guidances
and procedures developed throughout the Agency.

The National Enforcement Investigations Center (NEIC)

     The Director, NEIC, through the Assistant Director for
Criminal Investigations (the Assistant Director) , monitors
end supervises all investigative activities arising under the
criminal enforcement program through the Office of Criminal
Investigations' Area Offices (and Resident Offices), the Washington
Staff Office, and the NEIC Investigative Unit.  The NEIC
formulates procedural and technical guidance for the conduct
of Agency investigations.

     The Director, NEIC, assumes overall responsibility for
recruiting the Agency's investigative staff; informing the
Assistant Administrator of investigative activity; and recom-
mending how investigative resources should be allocated among
the Regions consistent with national enforcement strategies.
The NEIC develops and implements training programs on operational
aspects of criminal case development for Agency personnel.  It
assumes responsibility for technical support in Agency criminal
investigations that have inter-regional ramifications or
that exceed the resources of the technical staffs of individual
Area or Regional Offices.

     The NEIC oversees the criminal investigative activity in
each of the Area Offices.  Further, while day-to-day investigative

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                             -3-
decioions are usually made in the Area Office under the super-
viaion of a Special-Agent-in-Charge (SAIC), in designated  '   .1
cases of national significance or of particular sensitivity,
the Assistant Director has the authority to direct the investi-
gative activity of any Area Office.  The Assistant Director
also reviews and concurs in performance evaluations of the
criminal investigators (Special Agents) and conducts the         _
performance evaluations of the SAICs.   Final approval of .SAIC    -
performance evaluations is given by the Director, NEIC,

     Area Offices:  A key component of the.NEIC's centralized
management approach to the criminal enforcement program has
been the development of Area Offices.   Special Agents constitute
Headquarters rather than regional resources and are part of the
staff of NEIC.  They are housed in an Area Office and are supervised
by a SAIC who reports to the Assistant Director.  The management
of any given investigation is the primary responsibility of
the Special Agent, acting under the immediate supervision of
the SAIC.                   .                     .   .:..,,....

     The SAIC in each Area Office ensures that events (witness
interviews, investigative developments, opening and closing
of investigations) in each of the cases and investigations are
properly documented by the investigative staff utilizing standard
agency forms.  In certain Regions, the numbr of Special Agents
assigned and the investigative caseload has not yet risen to
a level justifying the presence of an Area Office.   A Resident
Office will be located in each such Region, directed by a
Resident-Agent-in-Charge who reports in turn to the SAIC who
is responsible for the Region in which the Area Resident Office
is located.

     NEIC Investigative Unit:   A Special NEIC Investigative
Unit, also staffed by experienced Special Agents, is located
at the NEIC headquarters in Denver.  Unlike Area Offices,
this unit has national jurisdiction, focusing on cases that
span the jurisdiction of two or more Area Offices,  that set
national precedent or where investigative demands are beyond
the capacity of a particular Area Office.  .Investigators
assigned to this unit also participate, where appropriate, in
investigations in which the NEIC is providing technical support.
The NEIC Investigative Unit — like the Area Offices --is
managed on a day-to-day baais by a SAIC, who reports in turn to
tha Assistant Director.

     Washington Staff Office;   The Washington Staff Office
serves as the OCI's focal point, at EPA Headquarters and provides
a liaison with all Headquarters program offices and with law
enforcement agencies located in the Washington area.  This
office selectively participates in investigations of national
importance.

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_  	•-__=_._       _.  --_,      .A.

 The Office of Regional Counsel (ORC)

      Special Agents will coordinate closely vith Regional Attoneys
 throughout the investigative process  and will utilize the
 expertise of selected Regional Attorneys for advice  on specific
 cases and EPA's statutes and regulations.  To facilitate this
 consultation, each ORC will designate a Regional Attorney to
 serve as a contact with the criainal  enforcenent prograc.
 Furthermore,  this Regional Attorney will be assigned to & case
 early in the case development process to assist as needed in
 the investigation, indictment, and prosecution.   Both the
 Regional Attorney and the Special Agent coordinate and consult
 with the CED in resolving issues concerning the application
 of criminal law to the criminal enforcement of envircnnental
 statutes.

      The Regional Attorney may become a member of the prosecu-
 tion team, Joining the prosecutor, the attorney from the CED,
 technical and program personnel and the Special Agent.   The
 Regional Attorney may assist in evidence review or documenta-
 tion and statutory and regulatory interpretation and other
 functions as assigned by the Regional Counsel necessary for
 the successful prosecution of the case.   The CED supports such
 activities by providing specialized expertise in the application
 of criminal law to environmental enforcement.

 The Regional Administrator

      The Regional Administrator, or his  designee, will be kept
 apprised of criminal  enforcement matters occurring in the
 Region.   To coordinate criminal investigations with  other
 Agency activities, notification to the Regional Administrator
 should occur, for example,  when a decision  io  made to pursue
 parallel civil/criminal enforcement proceedings, or  when inves-
 tigations involve companies or individuals  who are also involved
 with the Agency on other, unrelated matters.  It is  the respon-
 sibility of the Regional Counsels (as advised by the Regional
 Attorney assigned to  assist in a criminal investigation; to
 timely notify the Regional Administrators of appropriate cases
 and developments.  The Director, NEIC, and  .appropriate Regional
 Program Division Directors will notify the  Regional  Administrators
 of appropriate investigative situations. Once apprised of a
 criminal enforcement  activity, it is  the Regional Administra-
 tor's function to notify State regulatory agencies of important
 developments  in criminal investigations  as  appropriate.  *

 Th*i Program Assistant Administrators

      As  the national  program managers, the  Program Assistant
 Administrators work with the CED in the establishment of
 Agency-wide and media-specific compliance and enforcement
 priorities.  These priorities will provide  a framework for
 dccicions on the allocation of EPA's  criminal investigative
 end technical resources.

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                             -5-
     As in other enforcement areas, Program Assistant Adminis-
trators provide technical support and other resources to Head-
quarters and to the regions to support criminal investigations,
case development and prosecution.  NEIC and the CED will provide
the Program Assistant Administrators with projections of
anticipated resource needs to ensure adequate technical end
legal support for such purposes.

     .Each.Program Assistant Administrator will appoint one
individual to coordinate with the CED and the NEIC on criminal
enforcement matters.  Subject to the normal constraints on
dissemination of information concerning criminal cases,
consultation will occur during the referral review process
to ensure that a specific case does not raise policy issues
that should be brought to the attention of the Assistant
Administrator prior to the referral decision.

The Regional Program Division Directors

     The Regional Program Division Directors play an important
role in the case development process by providing upon request
technical support for an investigation through consultation or
actual field work, as needed and as resources are available.
The expertise of the technical staff in the various media is
an excellent resource for case development.  Also, in those
cases that are prosecuted and go to trial it will often be
necessary for the regional technical staff to testify as deter-
mined by the prosecutor.

     The Regional Program Division Directors will designate a
contact staff member for support of criminal investigations
involving the functions of that division.

The Office of General Counsel (OGC)

     In criminal enforcement matters, as in other areas of Agency
activity, the General Counsel is responsible for interpreting
laws and regulations to ensure their consistent application.
OGC attorneys also assist in resolving legal issues involving
the interpretation of environmental statutes that arise
during investigations, during the review of criminal referrals,
or during the prosecution of criminal cases.  OGC also partici-
pates in the preparation of briefs and other court documents
in criminal cases, and, in consultation with CED, makes
determinations whether to appeal adverse court decisions.

The Department of Justice (DOJ)

     DOJ and local United States Attorneys provide legal advice
upon request during field investigations and obtain criminal
search warrants and other court processes in support of EPA
criminal cases.  They direct the conduct of grand jury investi-
gations and proceedings, and all prosecutions and appeals of

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                             -6-
federal criminal environmental cases.  In^conault&tioc with
EPA attorneys and investigators, DOJ prosecutors negotiate and
accept plea agreements and make sentencing recommendations..
In addition, DOJ monitors the exercise of law enforcement .
powers by EPA Special Agents.                        >

III.  INITIATION AND CONDUCT OF AN INVESTIGATION     •

     This Section describes the interaction of the participating
offices in the initiation and pursuit of a routine investigation.
The roles described herein are for guidance and cau be changed
to accommodate the special circumstances of the investigation
and prosecution of a specific case.

Initiation of an Investigation:  Preliminary Inquiry

     An initial "lead" or allegation of potential criminal
activity may come to the Agency from any of several sources,
including State agencies, routine compliance inspections,
citizens or disgruntled company employees, among others.
Regardless of its source, the SAIC and/or the Resident-Agent-in
Charge (RAIC) should be immediately notified.  The SAIC or
RAIC evaluates the lead and, if necessary, assigns a Special
Agent for follow-up, assigns a case number and opens an investi-
gative file.

     If the reliability of the lead is unclear, the Special.
Agent conducts a preliminary inquiry to determine the credibility
of the allegation and makes an initial assessment of the need
for a more thorough investigation. - This initial inquiry is
brief, and involves no extensive commitment of resources or
tine.  The purpose is to reach an initial determination on the
need for a complete investigation.  The CED is consulted if
this determination concerns legal issues of criminal liability.

Conduct of an Investigation           :.•            • jon^- •
                                                   '•.;-    .^
    ( Because the complexity of many environmental criminal
investigations requires the skills of various disciplines, a
teem approach to the prosecution is necessary.  If, after the
preliminary inquiry, the SAIC feels that the lead warrants
thorough investigation, the Special Agent will immediately
contact the appropriate Regional Counsel to determine whether
any civil enforcement action is pending or contemplated against
the investigative target.  The Special Agent contacts the
designated regional program contact person for assistance and
transoittal of information when necessary. 'The Special Agent
contacts the appropriate Regional Program Division Directors
tc determine whether any administrative enforcement action is
pending or contemplated against the target.  For any particular
case where technical support during the investigation is needed,

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                             -7-


 the appropriate Regional Program Division Director will be
 asked to designate specific individuals to work with the Special
 Agent during  the investigation.  These activities are carried
 out in consultation with the NEIC.     ,
                                            •               • f
 •    Overall management of the investigation is the sole responsi-
 bility of the Special Agent, acting under the supervision of
 the RAIC or SAZC.  The Special Agent is responsible for determining
 the basic investigative approach, and takes the lead in conducting
 interviews, assembling and reviewing records, planning and
 executing surveillances, coordinating with the United States
 Attorney's offices and other federal, state and local law
 enforcement agencies, obtaining and executing search warrants,
 communicating with informants, contacting other witnesses and
 performing other investigative functions.

     In pursuing an investigation, the Special Agent is responsible
 for completing all required reports and coordination and
 notification requirements (interview summaries, reports of
 investigation, etc.).  As a general practice, only one member
 of the investigative team will record or document any stage or
 development in the investigation.

     Issues and problems concerning the use of discovery devices,
 the confidentiality of business information, delegations of
 authority within the Agency, interpretation and application of
 State statutes and enforcement proceedings, internal EPA policy
 and guidance, the impact of decisions by the United States
 Supreme Court and other courts, and elements of proof under
 EPA's environmental criminal provisions are legal issues that
 will have to be resolved by the CED, ORC and OGC contact.  It is
 the responsibility of'the Special Agent to consult with and
 seek the guidance of the legal contact of the ORC and the
 Assistant Enforcement Counsel on these and similar issues
 throughout the pre-referral investigative process.

 Parallel Investigations and Proceedings 1/
                              * -.
     While simultaneous administrative/civil and criminal enforce-
 ment actions are legally permissible, they are resource-intensive
1/  Agency guidelines on parallel proceedings were issued on
January 23, 1984.  (See memorandum "Policy and Procedures on
Parallel Proceedings at the Environmental Protection Agency",
Assistant Administrator, Office of Enforcement and Compliance
Monitoring to Assistant Administrators, Regional Administrators,
Regional Counsels, and Director, NEIC, January 23, 1984).
Agency officials and staff should consult these guidelines
prior to conducting parallel investigations or proceedings.
Further guidance on specific issues concerning parallel
proceedings is expected to be published.

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                              -8-
and fraught with potential legal pitfalls.  Parallel proceedings
will nevertheless be pursued where the public interest requires
a dual approach, e.g., where both injunctive relief or remedial
action and criminal sanctions are warranted.  Where injunctive
relief is not needed, and where the conduct warrants criminal
sanctions, an administrative or civil proceeding seeking punitive
penalties would generally be held in abeyance by the Region
pending the resolution of the criminal investigation.  The
criminal referral and the parallel administrative/civil action
of the Regional Office will each be considered to be separate
referrals for Regional management reporting purposes.  Where
parallel proceedings are Justified, the criminal investigation
will be pursued in accordance with Agency guidance on the
conduct of a parallel proceeding.  The Assistant Administrator
will approve the conduct of parallel proceedings upon the
advice of the Associate Enforcement Counsel and will notify
the Regional Administrator of the approval.

Coordination with State/Local Enforcement

     It is recognized that many investigations and cases can be
prosecuted at either the federal or state/local level.  It is
the goal under this policy over time to refer more cases more
frequently to the state/local level as the abilities and resources
at those levels increase and the case load at the federal
level becomes more difficult to manage.  Although this concurrent
Jurisdiction raises some issues (e.g., how to avoid duplication
of effort, how to obtain the best result, should separate
cases ever be brought, etc.), they do not warrant the issuance
o.f a foroal general operating policy in this area.  If the
need becomes apparent, a policy will be drafted for review and
cocment.

     Whatever determinations are made about the level at which
environmental criminal cases should bo prosecuted, it is
vitally important that at the investigative level close
coordination is maintained between and among federal and state/
local law enforcement and regulatory agencies.  SAICs are
responsible for ensuring regular communication, exchanges of
information under appropriate assurances of security, and
coordinated actions between OCI and such agencies in investigative
activities generally and with respect to specific investigations.

IV.  REFERRAL PROCEDURES

Routine Referrals

     Criminal cases shall be developed as thoroughly as possible
prior to referral to DOJ.  During this investigative and case

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                             -9-


preparation process, informal coordination among the Special
Agent, the CEO, the Regional Attorney, DOJ and local United
States Attorneys is encouraged.

     A referral recommendation will be developed when the field
investigation has been completed.  At this point, the results
of the investigation are assembled in a referral package by the
Special Agent.  The Special Agent assigned to the investi-  -   - -  -
gation is responsible for coordinating the preparation of the
overall referral package and consulting with other members of
the investigative team.  A separate legal analysis is drafted
by the Regional Attorney.

     Once the referral package is prepared, it is reviewed by
the SAIC and the Regional Counsel, who act as joint signatories.
Technical portions of the package are also reviewed by the
Region or Headquarters program office or the NEIC, depending
upon the source of technical support.  During this technical
review, the technical resources to support the ensuing
prosecution should also be identified and their availability
specifically confirmed by the appropriate technical office.

     Following completion of the referral package and concur-
rence in the referral recommendation by the SAIC and the
Regional Counsel, five copies of the referral package (with
all exhibits) should be directed to the Associate Enforcement
Counsel, and one copy to the Director, NEIC.  No copies of
this referral package will be sent to the local United States
Attorney or DOJ until Headquarters has reviewed the referral
package and the Assistant Administrator has approved the
referral.  However, the' Special Agent is encouraged to consult
and review documents with the local AUSA or DOJ prosecutor who
will be handling the case at the earliest possible time, as
needed for legal advice and for case development strategy at
any point in the invesigative process, even if the formal
referral has not yet been made.

     The Headquarters review will focus on the adequacy of case
development, adherence to the criminal enforcement priorities
of the Agency, legal issues of first impression, consistency
with related program office policy, and overall prosecutorial
merit.  In cases involving particularly complex issues of law,
the CED will also consult with OGC and DOJ attorneys.  If,
following this review process, the referral recommendation is
accepted by the Assisistant Administrator, copies of the referral
package will be directed simultaneously to the local United
States Attorney and to DOJ.  Appropriate cover letters will be
drafted by the CED for the signature of the Assistant Administrator.

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                             -io-
Emergency Assistance from United States Attorneys

     In unusual circumstances, it may be necessary to secure
the  immediate assistance of the local United States Attorney
for  legal process.  For example, immediate resort to the grand
jury's compulsory process may be required in investigations of
ongoing illegal activity, or when there are grounds to anticipate
the  flight of a witness or defendant.  Such situations will
arise..infrequently.  When they arise, the SAIC, with the
knowledge of the Regional Counsel, will contact the NEIC,
which will in turn consult with the CED.  Following approval
by the Assistant Administrator, telephonic authorization to
'contact the AUSA for appropriate assistance will be granted in
appropriate cases.  Copies of all materials normally included
in a referral package (which have been transmitted to the
local AUSA in connection with the emergency situation) will
then be directed immediately and simultaneously to NEIC, to
the  CED and to the Environmental Crimes Unit (ECU) of DOJ's
Land and Natural Resources Division.  These copies will be
sent within 48 hours.  Appropriate follow-up letters to the
AUSA and DOJ will be drafted by the CED confirming the emergency
situation.

V.  POST-REFERRAL PROCEDURES

     Following referral to DOJ, responsibility for managing
the  prosecution rests with the prosecutor assigned to the
case.  Usually, the prosecutor is a member of the local United
States Attorney's office.  In cases of national significance
or beyond the resources- of the local United States Attorney,
the  case may be managed by the ECU.  The ECU monitors the
progress of federal environmental criminal referrals throughout
the  country.  Within EPA, oversight of the criminal prosecution
docket is the responsibility of the CED.

     The Special Agent responsible for the investigation," working
in close cooperation with the Regional Attorney assigned to the
case, acts as primary liaison with DOJ or the local AUSA. '*
This Special Agent performs and coordinates additional investi-
gation as required and usually will be designated a special .
agent of the grand jury if a grand Jury presentation or investi-
gation is initiated.

     Many of EPA's criminal cases are developed further
through the grand jury.  Stringent, closely-monitored rules
govern the conduct of grand jury investigations.  To ensure
the  secrecy of the grand jury process, no one may have access
to information received by the grand jury without court per-

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                              -11-
mission or rule authorization unless otherwise permitted by lav.
Agency officials are responsible for familiarizing themselves
completely with these rules prior to participating in a
grand jury investigation. 2/
                                                 " ' .   I •   . i ( J i r
     The CED and ORC attorneys are responsible for fulfilling
requests for legal assistance during the litigation of the  • *-•
case.  CEO attorneys will coordinate with Regional Attorneys
and OGC in responding to these requests.  Regional program
offices and NEIC technical staff will be available to provide
technical support as needed.                       "-.>-.*•••

VI.  PLEA BARGAINING
                                            ••   '   »-.-'•   •  ;-,
     Negotiation of settlements in criminal cases (i.e.,  plea
bargaining) is the sole responsibility of OOJ and the local
AUSA although consultation with the investigative team and
the Regional Administrator is strongly encouraged.  Following
referral of A criminal case, Agency officials should never
enter into independent negotiations or discussions with
the subject(a) of that referral without prior coordination.
with and approval from the DOJ attorney or the AUSA overseeing
the case.  It is, of course, entirely appropriate for Agency
officials working on the criminal prosecution — including
investigators, attorneys and technical personnel -- to provide
input, suggestions and advice during the negotiation process.
DOJ or the AUSA conducting settlement negotiations should
consult the CED before entering into any final settlement.


VII.  CLOSING INVESTIGATIONS

     A case may be closed prior to or after referral to DOJ for
one or more of the following reasons:  initial allegation unfounded,
referral for administrative/civil enforcement action, referral
to another agency or law enforcecent office, lack of prosecutorial


                                 "" •   -     -              -.i
2/  Agency guidelines on grand jury investigations were* cir-
culated on April 30, 1982.  (See memorandum "Agency Guidelines
for Participation in Grand Jury Investigations , Associate
Administrator for Legal and Enforcement Counsel and General
Counsel to Assistant Administrators, Regional Administrators,
Regional Counsels and Director, NEIC, April 30, 1982.)  Agency
officials should consult these guidelines prior to participa-
tion with DOJ in a grand jury investigation.

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......                        -12-                            -


 •eric,  declination by DOJ  or resolution  of  the  case after the
 filing  of charges.  The  decision  to close an  investigation   	
 (unless it occurs  because  of court action or  a  jury decision)
 is one  which usually  is  made after consultation among EPA
 attorneys, the SAIC and  the  prosecutors  (if it  occurs after
 referral to DOJ).

 VIII.   DEBARMENT AND  SUSPENSION — -  ~   -   ._. J.. ' ™..~. ~

     As stated at  40  C.P.R.  §  32.100, "it is  EPA's policy to do   _
 business only with participants which properly  use federal
 assistance."  To protect the interests of the Government, EPA
 has the authority  to  deny  participation  in  its  programs to
 those who are either  debarred  or  suspended  (listed) for their
 illegal or improper activities.   This guidance  sets forth when
 and how a referral for debarment  is to be made.

 Upon Conviction

     Under the regulations,  only  convictions  mandate listing.
 Immediately upon obtaining a conviction  for the violation
 of either the Clean Air  Act  or the Federal  Water Pollution
 Control Act concerning a "facility", as  defined in 40 C.F.R.
 §  15.3(1), the SAIC in the region where  the conviction was
 obtained will telephonically notify the  CED for purposes of
 further referring  the matter for  "listing"  the  violating facility.
 The CED will verify the  conviction by obtaining a  copy of the
 court's judgment of conviction and referring  the matter with
 the relevant information and documents to the listing official
 in OECM.

 At Other Times

     At any time during  the  investigation or  prosecution of  a
 case, but before the  case  is closed, the SAIC may review the
 facts of the case  to  recomnend to the Assistant Director whether
 a  referral should  be  made  to the  Director,  Grants Administration
 Division,  for debarment  and/or suspension of  the person or
 company from the opportunity to participate in  EPA assistance
 or subagreements pursuant  to 40 C.F.R. Part 32.  If the decision
 by the  Assistant Director, after  reveiw  by  the  Director, NEIC,
 to refer the matter for  debarment is made at  the time the case
 is to be closed, the  Assistant Director  will  send  the relevant
 documents along with  a report  (stating the  reasons for the
 referral) to the CED, which  will  review  those materials and,
 if meritorious, make  a recommendation for referral through
 the Associate Enforcement  Counsel to the Assistant Administrator.
 If approved by the Assistant Administrator, the matter will
 then be referred to the  Director, Grants Administration Division.

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   -   •—       -         "---  -13-


     Any  deciaion by  the Assistant Director to refer the natter
 for debarment while the investigation is ongoing or while—the
 prosecution  is  pending will be done in accordance with the
 procedures for  parallel investigations set forth in Section II
 of these  General Operating Procedures.

 IX.  REQUESTS FOR ASSISTANCE IN CRIMINAL INVESTIGATIONS
 CONDUCTED BY THE JUSTICE DEPARTMENT AND THE FBI

     EPA  nay receive  requests for technical, legal or investiga-
 tive .assistance in environmental criminal cases that are initi-
 ated independently by DOJ or the Federal Bureau of Investigation
 (FBI).

     It is the  policy of EPA to provide support for these requests
 to the extent resources perait.  Requests for legal assistance in
 criminal  investigations from DOJ or the FBI are reviewed by the
 CED and the Assistant Administrator.  Requests for investigative
 assistance involving  substantial investigative and technical
 resources are reviewed and determined by the Director of NEIC
 and the Assistant Administrator.  Accordingly, Regional Offices
 that receive any such requests should forward the request to
 the appropriate Area  Office SAIC.

 X.   SECURITY OF CRIMINAL INVESTIGATIONS

     Information on criminal investigations nust be provided with
 restraint, and  only to persons who "need to know" the information.
 Additionally, special attention must be given to the care and
 custody of written materials pertaining to an investigation.

     Active criminal  investigations shall never be discussed with
 personnel outside of  the Agency except as is necessary to pursue
 the investigation and to prosecute the case.  Agency policy is
 neither to confirm nor deny the existence of a criminal investi-
 gation.   Requests for information on active investigations from
 the news media  must be handled by the appropriate SAIC, the Office
 of Public Affairs or  the CED consistent with the official
 guidance.3/
3/  Agency guidelines on press relations concerning investigations
Eas been circulated in draft.  (See memorandum "Press Relations
on Matters Pertaining to EPA's Criminal Enforcement Program",
Assistant Administrator, Office of Enforcement and Compliance
Monitoring and Assistant Administrator for External Affairs to
Assistant Administrators, Regional Administrators, Regional
Counsels, Director of NEIC and all SAICs).

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                      -=- -14-
     Finalty, in the event of Inquiries from Congress, the •te.i
of the Asaiatant Adminiterator vill work eloaely with the
Congressional Liaison Office prior to releasing any infernation
or aaking any public atataenta.

     The NEIC criminal inveatigative offices and CED offices are
equipped with secure office space, filing cabinets, and eviden.ce
vaults.  Similar security measures Bust be utilized by Regional
staff assigned to an investigation.

xi.  RESERVATIONS

     The policy and procedures set forth herein, and internal
office procedures adopted pursuant hereto, are not intended
to, do not, and may not be relied upon to, create a right or
benefit, substantive or procedural, enforceable at lav by a
party to litigation with the United States.  The Agency
reserves the right to take any action alleged to be at variance
with these policies and procedures or not in compliance with
internal office procedures that may be adopted pursuant to
these materials.

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          UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                      WASHINGTON, D.C.  20460
 KD  3B33

MEMORANDUM
                                           . •>"•*
SUBJECT:  Regional Counsel Reporting Relationship
                                                         OFFICE OF
                                                      THE ADMINISTRATOR
FROM:     Alvin L. Aim
          Deputy Administrator Designate

TO:       Assistant Administrators
          Associate Administrators
          Regional Administrators
          Regional Counsels

                                                           j •
     As part of an overall review of headquarters-regional "
matters, I have recently reviewed the relationship among the
Regional Counsels, the Regional Administrators, the Office of
General Counsel, and the Office of Enforcement Counsel, and
have met with a number of you  to discuss  this topic.  My cen-
tral desire has been to reconcile the need for strong legal
support to allow  the Regional  Administrators to succeed in
their duties with the need for national consistency in inter-
preting and applying the laws  under which the agency operates.
The decisions which follow are an effort  to meet both goals.

     Accountability of the Regional Administrators for
Enforcement.  The Regional Administrator,  rather than the
Regional Counsel, will be fully accountable for enforcement
activities and enforcement results.  I believe this is prefer-
able to the current system,  under which accountability is
divided between the Regional Administrator and the Regional
Counsel.  With my decisions  today,  the Regional Administrators
now have control  of the full range  of resources needed for an
effective regional enforcement program and thus are the appro-
priate focus of accountability for  that function.  The Assistant
Administrator for Enforcement  will  have the same policy-setting,
review, and oversight responsibilities as the other Assistant
Administrators have for their  regional counterparts.

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                           -2-
     Allowance holder for Regional Counsel resources.  The
Regional Administrator will be the allowance holder for Regional
Counsel budget allocations.  Administering these allowances in
headquarters has proved cumbersome and confusing, with no off-
setting benefits.  The allowance holder shift will take effect
October 1,  1983, for FY 1984.    *                   '

     Program direction of Regional Counsels*  The Regional
Administrator is the policy-maker for his region, and is the
Regional Counsel's client.  Accordingly, the Regional Counsel
and his staff must be responsive to the policj.es and priorities
established by his client,  the Regional Administrator.  This
means  that  the activities of the Regional Counsel will be
determined  on a day-to-day  basis by the Regional Administrator,
and'that the Regional Counsel is accountable for the quality,
timeliness, and adequacy of the legal services provided to  the
Regional Administrator.

     Selection and rating of Regional Counsels.  Given the
complexity  of EPA's regulatory programs, and the possibility
of confusion and damage  from divergent  legal approaches, I
think  we should continue to maintain a  single national law
office of which the Regional Counsels are parts.  Accordingly,
 the  lead responsibility  for selecting the Regional Counsel  and
 his  staff shall remain with the General Counsel, with  the
concurrence of  the Regional Administrator on the selection  of
 the  Regional Counsel.  Similarly,  the General Counsel  shall
review and  rate the performance of  the  Regional  Counsel, in
 consultation with  the Assistant Administrator for Enforcement,
 and  with  the concurrence of the Regional Administrator.  The
 General Counsel shall  also  have  the lead  in  establishing rating
and  promotion  criteria for  attorneys  in the  Regional Counsel
. offices.

      National  Consistency.   The  General Counsel  shall  review
 pleadings filed  in  regional cases  to  the extent  necessary  to
 assure consistency in  Agency legal arguments and statements on
 issues of national  significance.   The General Counsel  should
 speak for  EPA in  interpreting the  law.  The  Regional Counsels
 must of course  deal  with interpretive problems  in  carrying out
 their duty  to  advise  the Regional  Administrators.   However,
 the Regional  Counsels  should consult  with  the Office of General
 Counsel to  the extent necessary to assure  consistency  in Agency
 statements  on  legal  issues.

      These  decisions will make the delivery of  legal services
 more efficient Agency-wide, and will  help  support an effective,
 vigorous enforcement program.   Additional  directives will  detail
 how these  general decisions will be implemented.

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L_

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GUIDANCE FOR DRAFTING JUDICIAL  CONSENT DECREES
    EPA GENERAL  ENFORCEMENT POLICY f GM - 17
                       UNITED STATES ENVIRONMENTAL
                            PROTECTION AGENCY

                       EFFECTIVE DATE:  OCT  i 9 1983

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THE POLICIES AND  PROCEDURES ESTABLISHED IN THIS  DOCUMENT  ARE
INTENDED SOLELY  FOR THE GUIDANCE OF GOVERNMENT PERSONNEL.
THEY ARE NOT INTENDED AND CANNOT BE RELIED UPON  TO CREATE
ANY RIGHTS, SUBSTANTIVE OR PROCEDURAL, ENFORCEABLE BY  ANY
PARTY  IN LITIGATION WITH THE UNITED STATES.  THE AGENCY  RESERVES
THE RIGHT TO ACT  AT VARIANCE WITH THESE POLICIES AND PROCEDURES
AND TO CHANGE  THEM AT ANY TIME WITHOUT PUBLIC NOTICE.

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                      TABLE OF CONTENTS
TOPIC                                                     PAGE

I.    Introduct ion  	."	'	 1

II.  Front End Standard Provisions - Providing  the
     Factual and Legal Background for the Consent Decree .. 3

     A.  Parties  	-/••	 3
           Plaintiffs - example	 3
           Defendants - example  	 4
           Intervenors - example  	 5

     B.  Procedural History  	 5 •
           Examples   	 5

III. Transitional Clause - Providing a Lead  into  the
     Court's Order  	 6
       Example   	.'	 7

IV.  Provisions  of the Court's Order- 	:	 7

     A.  Jurisdiction and Statement of the Claim	 7
           Jurisdiction - example   	'	 7
           Statement  of the  claim - example   	 7
     B.  Applicability Clause
            Example   	
     C.   Public  Interest  Provision   	  9
            Example	  9

     D.   Definitions  Section	  9
            Example   	  10

     E.   Compliance  Provisions   	  10

          1.   Generally   	  10
                Example	  12
                Example  -  Sinter  Plant   	  13

          2.   Compliance Provisions  for Repeat  Violators   ..  14

          3.   Performance  Bonds   	  15
                Example   	  15

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    F.  Provisions Defining Other Responsibilities  of
        the Parties  to the Decree   	   15

        1.  Notification   	   15
              Example  	-	'	   16

        2.  Penalties  	   16

            a.  Generally   	   16
                   Examples   	•__..	   16,  17
                                         - '7
            b.  Other Obligations Assumed  by  Defendants  ..   18
                   Example   	   19

        3.  Dispute  Resolution  Provisions   	   19

        4;  Nonwaiver Provision  	   20
              Example   	   21

        5.  Stipulated Penalties  .-	   22
              Example  	   23
                                                     j
        6.  Force  Majeure   	   24
              Example   	   26

        7.  Public Comment on the  Decree  	   27
              Example  	   27

        8.  Retention  of  Jurisdiction  	   27
              Example   	   28

        9.  Confidentiality of  Documents  	   28
              Example  	   28

        10.  Modification  of the Consent Decree  	   28
              Example   	   29

        11.  Termination  of the Decree and  Satisfaction  ..   29
               Examples	   29, 30

        12.   Costs of the  Action  	   30
               Example   	   30

        13.   Execution of  the Decree  	   31

APPENDIX A - Consent Decree Checklist

APPENDIX B - Sample Consent Decrees

                              (ii)

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I.    Introduction



     The purpose of this document is to provide guidance on




provisions which EPA should include when drafting a settlement




agreement covering a civil enforcement action for which the




Federal government has decided that judicial remedies are




appropriate.  The document explains the appropriate use of




various standard provisions and provides sample language for



these provisions.



     Each judicial consent decree negotiated by EPA differs,




because each deals with a different noncompliance problem and




embodies  the results of a separate negotiating process.  Pro-




visions contained  in decrees must differ to  reflect the agree-




ment resulting  from these negotiations.  Most consent decrees,



however,  also must contain certain relatively standard provi-




sions  to  address matters which are relevant  in virtually all



enforcement actions.   Use of  this standard  language will




 lessen  the  review  necessary of the resulting draft consent




decree.   Of course, local court  rules  may also mandate  specific




 forms  which must  be followed  or  provisions  which must be



 included  in settlement agreements.




     The  settlement of a potential civil  judicial  action



 should  almost  always  result  in a negotiated consent decree.




 Occasionally,  in  the  past, EPA has entered  into  voluntary




 agreements  to  settle  some  enforcement  actions.   Those  EPA




 officials negotiating  settlements  in  EPA  enforcement  actions




 are not encouraged to use  such voluntary  agreements  and  they




 should be limited to  unique  situations,  for example,

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                             — 2 —


in cases in which no prospective action is required from the


defendant.


     A consent decree may operate as a release from liability


for the defendant for the violations addressed by the decree.


For this reason, the decree must be narrow.ly drawn and address
                                         - -*'

only the allegations made in the complaint.  The consent decree-


should release the defendant from liability only after the


defendant has complied with all  the terms of the decree.  In


all cases,  settlements must be carefully drafted.  Many


parties may be  involved  as defendants or potential defendants,


particularly  in  hazardous waste  cases;  therefore, you should


be certain that  non-settling defendants or potential defendants


are not released from liability  because EPA has  settled with


one or  some of  the defendants.  (See, Nonwaiver Provision,


page 20).


    This guidance  is meant  to  apply generally  to all EPA media


areas  and does  not attempt  to  discuss unique  issues  limited


to a specific media.  Therefore,  EPA attorneys drafting


consent decrees  should  consult  any  applicable  media-specific


policies for  guidance  in dealing with  these  issues.  You


should  follow separately issued  guidance  for  procedures  to


use  in  conducting  negotiations  and  for  the  review  and approval


of proposed  consent  decrees.

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                             -3-

II.   "Front End" Standard Provisions - Providing the Factual
     and Legal Background for the Consent Decree.

     A.   Parties and Cause of Action

         It is obvious that each consent decree must identify

the parties and the cause of action.  The plaintiff in every

action is the United States of America, on-;behalf of the

United States Environmental Protection Agency.  Identify the

cause of action by specifying the legal authorities allegedly

violated by the defendant and by briefly describing those

actions by the defendant which  led  to the filing of the complaint

The decree should make some reference to the  complaint which

has been or will be filed to demonstrate the  decree's relation-

ship  to pending litigation.

                            EXAMPLES

         1.   Plaintiff,  United  States of America, on behalf
              of the United  States Environmental  Protection
              Agency (EPA),  has  filed  the complaint  herein on
              (date)      This complaint alleges  that the
              defendant violated  the Clean Air Act,  42 U.S.C.
              §  7401 e_t seq. and  the 	  State  Implemen-
              tation Plan (the SIP)  adopted  under the Clean
              Air Act  by  the following actions:

         2.   Plaintiff,  United  States of America, on behalf
              of the United  States Environmental  Protection
              Agency (EPA),  filed  the  complaint  herein on
               (date)  .   This complaint alleges  that the
              defendant violated  the Clean Water  Act, 33
              U.S.C. §1251  e_t seq.   and National  Pollutant
              Discharge Elimination  System  (NPDES) Permit No.	
              by the following actions:


      Every  consent  decree  should  identify  the defendant  in  terms

of  the  defendant's  status  as an individual,  corporate entity,

partnership,  etc.   This  section should give enough  factual

 information  to establish the  court's  personal jurisdiction

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                             -4-

over the defendant and to establish venue.  In some situations,

the defendant will own or operate several facilities.  Facilities

covered by this decree should .be specified with particularity.

If the decree fails to identify precisely those facilities

or sources which are in violation of the  relevant statute(s)

and for which relief is provided in the decree, there may be

some question as to the scope of the decree.

                           EXAMPLE

             Defendant, XYZ Steel Corporation  (Defendant),
             is a Delaware corporation, registered  to do
             business  in  the Commonwealth of Virginia
             with its  prinicipal place of business  at 6004
             Main Street, Alexandria, Virginia.

             Defendant owns and operates  an  integrated steel-
             making facility known  as the "Karefull Works",
             in Karefull  Hills, Smith County,  in  the Southern
             District  of  Virginia.  Defendant  owns  and
             operates  various facilities  at  the Karefull
            • Works, including among others,  a  sinter plant,
             comprised of two sintering  lines;  an open hearth
             furnace;  three blast  furnaces;  an electric
             arc  fan  shop, comprised of  two  electric arc
             furnaces; and  two  coke oven  batteries.  All
             of  the above facilities are  alleged  by the
             Plaintiff to be sources of  air  pollution operating
             in  violation of the State  Implementation Plan
             and  are  covered by this decree.


      In  addition  to  the  plaintiff  and defendant(s),  any  inter-

 venors  in  the  suit  (often affected  States)  should  be  identified

 as parties to  the  decree.  Making  the  intervenors  parties to the

 decree  is  necessary  for  full settlement  and  can give  them the

 ability  to enforce  the decree's provisions.   Binding  intervenors

 to the  decree's  provisions also provides the defendant  with

 complete information  as  to the  extent  of its liability.   If

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motions to intervene are pending, those, as well as any other

outstanding motions, should be resolved by the decree.

                           EXAMPLE

             The State of Ohio has moved to intervene as
             Plaintiff.  The Commonwealth of Pennsylvania
             has also moved to intervene as Plaintiff to
             protect its interest insofar ;as resolution of
             the allegations of  the complaint affect water
             quality in the Mahoning River at the Ohio-
             Pennsylvania State  line.   The motions  to
             intervene are hereby granted.


     B.  Procedural History

         The decree should include provisions regarding proce-

dural  history  if the defendant in the  case at bar has been

involved in prior  relevant enforcement  proceedings.   It is  helpful,

in  these cases,  to specify the relationship between this  decree

and previous decrees and orders  in effect with  regard to  this

defendant.  The  decree you are drafting may abrogate  or add to

the provisions of  a previous decree  or  order.   If so, you

should  detail  these facts  in the decree.   In  some  instances,

the previous decree or order may have  resolved  violations at

the same  facility  which  are  so similar to  those presently being

addressed  that the existence of  two  decrees would  be  confusing.

A  new  decree which incorporates  those  provisions of the prior

decree still  in  effect may clarify  the obligations  of the

defendant.   Finally,  if  the  violation  of  an  administrative

order  preceded this judicial  action,  you  should note that

 fact  in this  section  of  the  decree.

                            EXAMPLES

          1.   Plaintiff  and Defendant entered  into a

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                             -6-

             Consent  Decree  to resolve a prior case,
             Civil  Action No.  	, and the
             Defendant  has fully  and satisfactorily
             complied with that prior Decree.

             Plaintiff  and Defendant entered into a
             Consent  Decree,  to resolve violations of the
             Clean  Air  Act at defendant's 	
             facility.   That  Decree retains full force and
             effect.                      .'-••

             Plaintiff  issued an administrative order
             pursuant to §309 of the Clean Water Act to
             the Defendant on (date).  The Defendant has
             failed to  comply with the terms of this
             administrative order.
Ill.  "Transitional" Clause - Providing a Lead into the Court's
     Order

     Traditionally, every consent decree contains a transi-

tional clause which signals the end of the introductory

portions of the decree and the beginning of the Court's

order.

     You will most likely draft and execute a consent decree

which is the result of a settlement before the introduction

of any evidence or the finding of any facts.  In these instances,

it is inappropriate to recite  that these events took place.

     In some instances, settlement may be reached without  the

defendant admitting any facts  or points of law and refusing  to

admit any liability.   It  is appropriate to use this clause  to

indicate this  fact.

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                             -7-

                           EXAMPLE

             There has not been a trial on any issue of fact
             or law in this case.  However, the parties wish
             to settle the dispute described above.   Accordingly,
             they have agreed to the following order through
             their attorneys and authorized officials.

             THEREFORE, it is ORDERED as follows:
                                         -'"'

     However, if the defendant has admitted certain facts,

these should be explicitly noted in the decree.


IV,   Provisions of the Court's Order

     A.  Jurisdiction and Statement.of the Claim

         Every decree must contain a provision reciting that the

court has subject matter and personal jurisdiction.  The decree

should recite the statutory authority for  the  court's  jurisdic-

tion.  This  is particularly important if  the defendant disputed

the court's  jurisdiction.  The  following example states the  fact

of the court's jurisdiction and  provides  a waiver by the defen-

dant of any  objections to  the court.'s jurisdiction.

                            EXAMPLE

             This Court has  jurisdiction  over  the
             subject  matter and  over  the-parties
             pursuant  to  23 U.S.C. §1345;  42  U.S.C. §7603
             and  42 U.S.C.  6973.  The Defendant
             waives any objections  it may  have to  the
             jurisdiction  of  the Court.


     Additionally,'  Federal  Rule  of Civil  Procedure  8(a) requires

that a complaint  state a  claim  for which  relief  can be granted.

Obviously,  courts  cannot  grant  relief where  no cause of action

will lie.   It  is  essential  to state- in  the decree  that the  com-

plaint met  this  requirement,  e.g.,  "The  Complaint  filed herein

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states a claim for which relief can be granted".  Such a state-

ment does not constitute an admission of liability by the

defendant, but only that the allegations of the complaint, if

proved, would support the judgment.

     B.  Applicability Clause            . ;r

         The applicability clause defines those to whom  the

decree applies.   It binds the  successors in interest  to  both

the plaintiff and  the defendant,  thus providing for those

instances when ownership of facilities or sources may change

after  entry of the decree.  The language used parallels  the

language  of Federal Rule of Civil Procedure 65(d) since  that

rule  sets out  the  scope of  injunctions.

                            EXAMPLE

             The  provisions of this  consent decree shall
             apply  to and be  binding  upon  the parties  to
             this  action, their officers,  agents, servants,
             employees  and  successors.   Defendant shall
             give  notice of  this  consent decree  to any
             successors  in  interest  prior  to  transfer
             of ownership and  shall;simultaneously verify
             to plaintiff that defendant  has  given such
             not ice.


      In  some cases, particularly  hazardous  waste  site cases,

the decree  may  include  a  further  provision  which  will ensure

 that  subsequent  purchasers  of  the property  have  notice

 that  the site  was or  is a hazardous  waste  site  and  that  a

 consent  decree  exists  which affects  the  property.   For  example,

 the  decree  could  provide  that  it  be  recorded  with the local

 office having  responsibility for  the recording  of deeds  and

 other such  instruments.   Alternatively,  the defendant could

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                             -9-

agree to note the decree on the deed to the property.

     C.   Public Interest Provision

         All consent decrees should contain a provision that the

parties  agree and the Court has found that the decree is in the

public interest.  Such a statement by the. parties and a finding
                                        • -•'
by the Court makes it more difficult for others to later attack

the decree's terms.  (This is especially true for those decrees

which are subject to public comment.  See the discussion at

page 27.)

                           EXAMPLE.

             The parties agree  and  the Court  finds that
             settlement of these matters without  further
             litigation is in the public interest and
             that the entry of  this decree is the most
             appropriate means  of resolving  these matters.


     D.  Definitions Sect ion

         Consent decrees which  contain many  technical or poten-

tially ambiguous terms, or define  terms according to agreement

reached between  the parties should  contain a  separate section

listing those  definitions.  This section can  also give  defini-

tions for potentially misleading terms.

     Of course,  definitions given must conform  with  definitions

given in statutes  and regulations. ' Do not attempt  to redefine

terms that  have  specific  legal  definitions;  however, examples

or  illustrations of  these  terms may be appropriate.

      For consent decrees  that  are  very short  and  limited  in

scope a  separate  section  devoted  to definitions may  be  unne-

cessary.  Terms defined in  specific decrees  will, of course,

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                             -10-

vary.   The following example demonstrates one form of such a

section.

                           EXAMPLE

             The following terms used in this consent
             decree shall be defined as follows:

             a.  The term "days" as used;jierein shall
                 mean calendar days.

             b.  The term "permanently cease operation",
                 when used in such phrases as "per-
                 manently cease operation of the six  (6)
                 open hearth furnaces", shall mean the
                 complete cessation of production at  the
                 relevant source and the termination  of
                 all power or fuel  to the source.


     E.  Compliance Provisions

         1.  Generally

     Consent decrees must require compliance with applicable

statutes or regulations  and  commit  the defendant to  a particular

remedial course of  action by a date certain.  Consent decrees

negotiated by  EPA contain compliance provisions whenever  it

is  necessary for defendant  to  take  remedial  action  to -cure

or  prevent violations unless no  injunctive  relief  is necessary

to  obtain  compliance with applicable  law  (i.e., penalties

only case ) .

     Compliance provisions  set out-what  steps  the  defen-

dant must  take to  remedy violations of  various  environmental

statutes  and usually define  methods EPA  can  use to  determine

the. defendant's success  in  meeting  these  provisions.  The

specific  compliance provisions of  each  decree  will  vary

depending  on  the  facts  of  the  specific  case  and the  media

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                             -11-

involved.   Drafters should consult media-specific policies

for guidance.

     Compliance provisions should specify the standard or level

of performance which a source ultimately must demonstrate it

has met.  Other than interim standards to be attained until
                                        *-*'
                                       " /
final compliance is achieved, a decree should not set a

standard less.stringent than that required by applicable law because

a decree is  not a substitute for regulatory or statutory change.

     You should avoid including compliance provisions which

require the  defendant to comply solely by installing certain

equipment, unless specific technical standards are required by

applicable regulations.  Such provisions should  require

compliance with the appropriate standard as well.  Such a

provision may allow the defendant to argue  that  installation

of the  equipment fulfills  the requirements of the consent

decree  even  if  the equipment fails  to achieve compliance

with statutes and regulations.  You may  include  provisions

which require  the  installation of necessary  control  technology.

However,  the provisions must be clear that  installation of

specific  equipment does not  relieve  the  defendant from  the

responsibility  for achieving and.maintaining  compliance with

the  applicable  laws and regulations.I/
 \_/  Under  some  statutes,  CERCLA,  for  example,  standards  for
 clean-up  are  rarely  available.   When the  decree  involves
 future  clean-up  activities  rather than  cash  settlements,  the
 decree  may  usefully  specify continuing  State/EPA responsibilities
 for determining  future  clean-up  activity.

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                             -12-

     An important part of the compliance section of a decree

is the inclusion of provisions which provide a means of

monitoring the defendant's performance.  Depending upon the

performance standard required by the decree, monitoring

provisions might, for example, require periodic tests or reports
                                          • r
by -the defendant.  Test protocols may be set out in technical

appendices to the decree.  Generally, in choosing monitoring

provisions you should consider such  factors as the impact

on Agency resources of different monitoring requirements

and the ease with which  the Agency can proceed with monitoring,

as well as the need for  some  type of Federal oversight to

ensure that the  defendant  is  addressing noncompliance problems

adequately.  For example, you will want to  provide for site

entry  and access and document review by the Agency in the

decree.   You should not  waive the Agency's  right to assert

or utilize its statutory  authorities,  such  as  right of entry

or document production.

                            EXAMPLE

             Any authorized  representative  or  contractor
             of  U.S.  EPA or  Intervenors,  upon  presentation
             of  his credentials, may enter  upon  the premises
             of  the Karefull  Works  at  any  time for
              the purpose of  monitoring  compliance  with
              the provisions  of  the  Consent  Decree.

      The  decree  should  specify  timetables  or  schedules  for

achieving compliance  requiring  the  greatest degree  of  remedial

action as quickly  as  possible.   Such timetables  are  particularly

relevant  in  decrees which mandate  construction the  defendant

must  undertake  or  cleanup the defendant must  accomplish.

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                             -13-

These schedules should include interim dates so that the

Agency can monitor the defendant's progress toward compliance.

                           EXAMPLE

   III. Sinter Plant

     A.  Applicable Emissions Limitations.
                                        • 'f
         1.  Emissions from the sinter plant at Defendant's
             Karefull Works shall comply with the emission
             limitations in 25 Pa. Code §§123.41, 123.3 and
             123.1 as follows:

             a.  Visible emissions from any sinter plant
                 stack shall not  equal or exceed  20% opacity
                 for a period or  periods aggregating more
                 than three (3) minutes in any sixty (60)
                 minute period and shall not equal or exceed
                 60% at any time, as  set forth in 25 Pa. Code
                 §123.41.

             b.  Visible emissions from any part  of sinter  •
                 plant operations shall not equal or exceed
                 20% opacity for  a period of periods aggregat-
                 ing more  than three  (3) minutes  in any sixty
                 (60) minute period and shall not equal or
                 exceed 60%, as set forth  in 25 Pa. Code
                 §123.41.

             c.  Mass emissions  from  the sinter plant
                 windboxes and from all gas cleaning
                 devices installed to control emissions at
                 the sinter plant shall not exceed 	
                 grains  (filterable)  per dry standard cubic
                 foot  (the applicable emission limitation).

             d.  Fugitive  emissions  from any source of
                 such emissions  at the sinter plant shall
                 not exceed  the  emissions  limitation set
                 forth  in  25  Pa.  Code §123.1

          2.  The air pollution control equipment  described
             below shall be  installed in accordance with
              the  following schedule:

             Submit  permit application  November  1,  1980
              to DER  and  to EPA  for
              approval

              Issue purchase  orders       May  1,  1981

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                             -14-

             C eminence  installation       November 1,  1981

             Complete  installation       September 1,  1982
             and  start up
                             *•                  *
             Achieve  and demonstrate    November 1,  1982
             compliance

     B.   Sinter  Plant  Compliance Program

         1.   In  order  to bring Defendant"'!' sinter plant into
             compliance with the requirements specified in
             paragraph III.A.I.e.  above, Defendant shall
             install  the  following  air pollution control
             equipment on  sintering line #1.:

             a.   Defendant shall install an air pollution
                 control  device which complies with the
                 emission  limitation of paragraph III.A.I.e.
                 on if 1 sinter plant windbox to control  sinter
                 plant windbox stack emissions.

             b.   Defendant shall install a scrubber or  a
                 baghouse  (or separate baghouse, as appro-
                 priate)  on if 1 sinter line and appropriate
                 ductwork  to replace the existing cyclone
                 for  control of emissions from the discharge
                 end  of if 1 sinter line.

             c.   Installation of this equipment  in no way
                 relieves  the defendant of the require-
                 ment of  achieving and maintaining comp-
                 liance with the emission limitations set
                 out  in paragraph III.A.I.
         2.   Compliance Provisions for Repeat Violators

     When negotiating with a source with a long history of

repeated violations negotiators should consider including

more stringent compliance monitoring provisions in resulting

.consent decrees.  The decree could include provisions for

more frequent monitoring and testing by  the source to ensure

continued future compliance or opportunities  for more SPA

monitoring and testing  in addition to self-monitoring by the

source.

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                             -15-

         2.   Performance Bonds

     EPA may require performance bonds from a defendant to ensure

that actions required by the decree (i.e., clean-up of a site,

installation of pollution control equipment) are actually com-

pleted.  The amount of any such bond will vary from case to
                                        •-~r
case.  The provision should state those circumstances under

which  the bond becomes payable.  The bond itself is a separate

instrument which sets out more fully those circumstances

under  which the bond is forfeited and  those conditions under

which  the bond is released, as well as any sureties guaranteeing

the  bond.  Therefore, the bond instrument itself should be

closely  review.ed for adequacy.

                           EXAMPLE

             The defendant shall comply with  the follwing
             provisions at Blast Furnaces 1,  2,  3  and 4.

             a.  Defendant shall install  an emission
                 suppression  system on furnaces  1  and 4.
              c.   Defendant  has  posted  a  bond  payable  to
                  United  States  Treasury  in  the  amount  of
                  $1,000,000 for each of  blast furnaces
                  1  and  4  payable immediately  and  in  full
                  if  defendant  fails  to certify  installation
                  of  an  emission suppression system  by  December
                  31,  1982,  and  demonstration  of compliance
                  with the above emission limitation  by December
                  31,  1982.
      F.   Provisions  Defining  Other Responsiblities  of  the
          Parties  to  the. Decree.

          1.   Notification Provision

              Various provisions  in consent  decrees  may require

 not i f ica.t ion of different events to the plaintiff,  defendant

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                             -16-

and/or the court.  When this is the case, it is appropriate

to include a provision setting out to whom such notices should

be given.

                           EXAMPLE

             Whenever, under the terms of this decree,
             notice is required to be given by one party  to
             another party and/or the court, such notice
             shall be directed to the individuals specified
             below at the addresses given, unless those
             individuals or their successors give notice  in
             writing to the other parties that another
             individual has been designated to receive
             such communications.

                (appropriate names .and addresses)


          2.  Penalties

             a.  Generally

     Often,  the  defendant will be liable  for a civil  penalty  for

 its  violation  of  the  statute.  Some decrees may contain only

 penalty  provisions  in situations 'in which some sanctions  are

 appropriate  to respond  to past violations and  to  deter  future

 misconduct,  yet  compliance  provisions  are unnecessary because

 the  defendant  has achieved  compliance  before  the  execution

 of  the  decree.   The decree  should  state  that  the  payment  is

 a penalty so the defendant  does  not  obtain  a  tax  advantage

 from its payment.'

                            EXAMPLE
              Defendant shall pay a civil penalty in the
              amount of 	 as a result of the defen-
              dant's violation of 	 with regard to
              facilities which are the subject of this decree.

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                             -17-

     The decree should also state terms for payment of any penalty.

Normally, payment should be in a lump sum within a short time

from the entry of the decree."  Installment payments may be allowed

in the following circumstances:

   - if the defendant can demonstrate an inability both to pay  the
                                        - 'T
     lump sum penalty and to finance remedial action or continue

     in operations; and,

   - if  there is no reason  to  believe that further payments will

     not be forthcoming.

If the defendant agrees  to  pay by 'installments,  the decree

can provide for  interest at the  appropriate  judgment  interest

rate.

     Payment provisions  should recite  the amount of  the payment,

to whom  paid, how -payment  is made and when payment  is  due.  Normally,

the provisions  should require  defendants  to  submit  a  cashier's

check  payable  to  "Treasurer, United  States of America" to  the

appropriate Regional  Counsel.

                            EXAMPLE

              Defendants  agree  to pay a  civil  penalty  in  the
              total  sum  of  ONE  MILLION,  THREE  HUNDRED  AND  FIFTY
              THOUSAND DOLLARS  ($1,350,000).   The  terms of
              this  paragraph do not  limit  remedies  available
              for  violation  of  this  decree.   Payment  of ONE
              MILLION  DOLLARS  ($1,000,000)  of  such  penalty
            .  shall  be made  within  five  days  of  the  entry  of
              this  decree,  by  cashiers  check  payable  to
              "Treasurer,  United  States  of  America",  delivered
              to the Regional  Counsel,  USEPA,  Region  V, 230
              South  Dearborn Street,  Chicago,  Illinois 60640.

              The remaining  THREE HUNDRED  AND FIFTY  THOUSAND
              DOLLARS  ($350,000)  of  such penalty shall be  paid
              in the same manner, either by December 31,  1982,

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                             -18-

             in which event there will be no interest charge,
             or by June 30, 1984, in which event interest
             shall be charged at the rate provided in 28 U.S.C.A.
             §1961, for the time period between the date of entry
             of this decree arfd the date of payment.

                 b. Other Obligations Assumed by Defendants

     During negotiations, defendants may offer to take certain
                                         •"T
action in order to offset or in lieu of a cash penalty.  For

example,, the defendant may offer to install extra pollution

control equipment which is not necessary to meet legal requirements.

     If EPA has agreed to accept lesser amounts in settlement

because of extra pollution control activity by the defendant,

drafters of consent decrees must be sure that  this agreement

is explicitly  noted  in the decree, and  that the decree requires

the defendant  to operate and maintain any  "extra" equipment.

Consent decrees have precedential value, and any such  trade-off

between the Federal government and defendants  must be  readily

apparent to readers  of the decree.  This provision will  also

ensure that the defendant  is bound by  its  agreement  to undertake

these actions.  You  should refer  to applicable civil  penalty

policies for guidance  in evaluating credit-worthy  activities and

their appropriate  use.

     An effective  means  of ensuring  the defendant's  performance

of  these actions  is  to include  a provision which  defers

collection  of  some or  all  of  a  penalty  amount  until  performance

 is  completed,  so  long  as  the  amount  ultimately paid  is  acceptable

under  any  applicable  penalty  policy.   The  provision  could

 then  excuse payment  of  the deferred  portion of the  penalty

entirely when  performance  has  been  satisfactorily  completed.

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                             -19-

                           EXAMPLE

             The  payment  of the  penalty  amount  due  on  (date)
             shall  be  excused by the  plaintiff  if  the  plaintiff
             finds  that  the following conditions  have  been
             met.

             a)  By  jdate)  , defendant shall  install and  operate
             a  coke-side  shed (as  described  in  paragraph I.B.l.b.)
             on each  battery to  control  pushing emissions.
             Each shed shall be  evacuate'6 continuously to
             capture  and  clean emissions from both  the pushing
             operation and all door leaks.

             b)  Defendant shall  achieve, maintain and  demonstrate
             compliance  with the emission limitation set forth
             in paragraph I.A.l.d.  with  respect to mass  emissions
             attributable to coke  oven pushing  operations by
             (date)  .   Defendant shall achieve  and demonstrate
             compliance  with the emissions limitation  set forth
             in 25  Pa. Code §123 . 44(a ) (3 ) with  respect to
             door emissions under  the shed by  (date).

             c) Defendant shall certify  completion of  the conditions
             listed in subparagraphs (a) and (b)  above to the
             plaintiff by certified letter.   This notification
             should be sent by U.S. Mail, return receipt
             requested to  (name, title and address)  by  (date) .


         3.   Dispute Resolution Provision

     Disputes may arise between EPA and  the defendant after

execution of the decree as  to the defendant's  compliance with

the terms of the decree.   The decree can provide its own mechanism

for resolving some or all  of  these potential disputes by the

parties before resorting  to  the court for resolution of  the dispute.

Dispute resolution by the  parties should be  limited to a specific

amount of time.  Such a dispute resolution provision•will

allow EPA to avoid resolution of each dispute  by the court.

Advantages of such a  provision  include:

     a) speedier resolution  of  disputes  because resort  to

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                             -20-

        the court may not be necessary; and

     b) technical disputes can be resolved by those with the

        requisite expertise, thus avoiding the need to

        educate the court before evidence can be evaluated.

     A number of dispute resolution devices can be used in
                                        - -r
decrees.   For example:

     a) EPA and the defendant could agree to negotiate for a

        a limited period of time any such dispute or specified

        disputes which arise.

     b) The parties could agree  to submit the matter to

        arbitration.  Again, a limited time period should  be

        specified during which the parties could submit the

        matter  to arbitration.   A specific time'limit would be

        appropriate for  the arbitration process as well.

     c) Failing resolution  by the parties, the decree should

        provide for application  to the court  to resolve disputes.

        If  the  matter is submitted to  the court for resolution,

        the decree  should provide that the defendant bears  the

        burden  of proof.

         4-. Nonwaiver Provision

     At times  a set of  actions by a defendant may  violate

 separate statutory  requirements.  One  violation may be  settled

 while  other claims  are  litigated.  In  all decrees,  it  is

 proper to  state that  the decree  does  not  affect  the defendant's

 liability  with  regard to other statutes or  regulations.  The

 following  sample  is  acceptable.

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                             -21-

                           EXAMPLS

             This consent decree in no way affects or
             relieves defendant of responsibility to
             comply with any o'ther State, Federal or
             local law or regulation.

     If a consent decree settles a portion of a dispute under a

statute, the consent decree should clearl^- indicate that other

aspects of the case have not been settled.  For example,, in

some hazardous waste cases an agreement may be reached

dealing with surface clean-up of a site but issues on ground

water contamination may be reserved  for later resolution.  These

partial consent decrees should clearly state that the defendant

is not  fully released from liability*

     Various statutes grant EPA  specific  powers to deal with

emergency situations.  The decree may specify that the  Agency

retains the power  to act in these situations.

                           EXAMPLE

             This  decree in no way affects the ability  of
             EPA  to  bring an action  pursuant to Section
             303  of  the Act, 42  U.S.C. §7603.

     Additionally, you may want  to include a provision  to

preserve  the government's cause  of action against third parties

who  are not parties  to  the suit  and  who may  be responsible along

with the  named defendant ( s )..


                           EXAMPLE

             This decree does  not  limit  or affect  the
             rights  of  the defendants or  of  the  United
             States  as  against  any  third  parties.

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                             -22-


         5. Stipulated Penalties


     Most decrees should contain provisions for stipulated


penalties.  These provisions encourage compliance and simplify


enforcement by providing a significant, clearly defined sanction


in the event the defendant violates a pro.vision of the decree.
                                        • f

Stipulated penalties are appropriate for violation of the


following  types of provisions:

             a)  final and interim compliance requirements,


             b)  reporting,  testing or monitoring requirements,


             c)  any other performance requirements  (including


                 requirements  to pay civil penalties).


     Provisions for stipulated penalties should  include the amount


of the penalty, how the penalty  should be paid,  and  to whom the


penalty  should  be paid.  To  set  the amount of a  proposed  stipulated


penalty,  you should be guided  by applicable statutes, regulations


and EPA  policies.  Normally,  defendants should pay stipulated


penalties  by delivering a  cashiers, check made payable to  "Treasurer


United States  of America"  to the appropriate Regional Counsel.


      The decree may also provide  that  the  court  issuing  the


decree will  resolve disputes between  the parties as  to  liability


for and  the  amount of  an assessed  stipulated penalty.   The provision


should also  make clear that  stipulated penalties are not  the


plaintiff's  exclusive  remedy for the  defendant's violation of


 the decree and that  the  plaintiff  reserves  its  right to seek


 injunctive relief.

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                             -23-

                           EXAMPLS

             Failure  by  the defendant  to  achieve  full  compliance
             as  required  by Paragraphs  IV.A.I  through  9,  except
             as  excused  pursuant  to  Paragraph  V herein (force
             majeure),  shall require defendant to pay  a  stipulated
             penalty  of  57,500  per day  for each day  that  such
             failure  continues.

             Stipulated  penalties  are  payable  upon demand as  follows:

             Cashiers check payable  to:     Treasurer,  United  States
                                           of  America

             Address  for payment:           USEPA, Region III
                                           Curtis Building,  Second  Flo<
                                           6th and Walnut Streets
                                           Philadelphia,  PA.  19106
                                           Attn:  Regional Counsel

             Any dispute with respect to defendant's liability
             for a stipulated penalty shall be resolved  by this
             court.   The provisions  of this paragraph  shall  not  be
             construed to limit any  other remedies,  including
             but not  limited to institution of proceedings for
             civil or criminal contempt,  available to  plaintiff  or
            . intervenors for violations of this consent  decree or
             any other provision of  law.

     You may want to  provide for stipulated penalties  which esca-

late based on the number of days the source is not in  compliance

or on the amount of excess emissions or effluents discharged

by the source in violation of the decree.  For example,   for days 1

through 30 of violation the stipulated penalty could be  $1000

per day.  This could increase to S2000 per day for days  30 through

60 and so on.  Similarly,  excess di-scharges or emissions could

be expressed as a percentage over the daily limitation and a scale

could be devised  for these  as well.   For  example, discharges which

are.less than 10% over the  daily discharge limitation would be

subject to a stipulated penalty of  $500,  from  10% to  25%, $1000

and so  forth.

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                              -24-




      Another approach which may aid the negotiation process  is




 to use a stipulated penalties provision which allows  the payment




 of penalties for interim violations into some kind of escrow




 account.  The clause could provide  for  the return of  these payments




 to the defendant if timely final compliance  is achieved and  the




 terms of the consent decree are satisfied.   If such an escrow




. account arrangement is used, EPA staff  should review  the escrow



 agreement itself.  The agreement should clearly give  the escrow



 agent the authority to turn the fund over  to EPA  in the event




 of noncompliance .




       6.  Force Majeure




       The purpose of a force rnajeure clause is to  excuse the




 defendant's  performance pursuant to the decree because of  cir-



 cumstances  beyond  the defendant's  control  (e.g.,  acts of God).



 Therefore,  such  a  clause should not be  included  in a  decree



 unless  the  defendant  insists on its inclusion.




       Although  a  force majeure clause  is something the clef ^i-^ -1




 may  want  in the  decree,  it  normally will be  to EPA's  negotiating



 advantage  if Agency representatives draft  the clause.  Generally,




  the  following  elements should be  included  in drafting such a



 clause.



       a)   The clause must clearly  limit  excused delays in per-



  formance  to those  events which  are beyond  the control of the




  defendant.   The  decrse may  define  specifically which  circum-



  stances would trigger the  force majeure clause.   Arriving  at




  a list  of such circumstances, however,  may consume  a  good  deal

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                             -25-




of negotiating time.   For this reason, the term "circumstances




beyond the control of the defendant" is acceptable.  The language



in the example (circumstances "entirely beyond the control of the




defendant) is better.



     The clause should not allow the defendant to claim economic




hardship or  increased costs as circumstances beyond defendant's




control which trigger the force majeure clause.



     b)  The clause should clearly place  the burden on the



defendant  to prove that  the events causing the delay are based



on circumstances beyond  its control.  The burden should be  one




satisfied  by clear and convincing evidence,  if possible.




     c)  The clause should include a provision requiring




notification within a time certain by  the defendant to  the



plaintiff  and the court  of any delay or anticipated delay



the defendant claims  triggers  the force majeure clause.  This



notification should  include  the  cause  of  the delay and  the  ex-




pected duration of the delay.  Failure  to give notice of a




particular problem should preclude  the  defendant  from  invoking




the force  majeure provision  based on  that problem.



     d)   The clause  should provide  that  the  defendant  take




measures  to  prevent  or minimize  the  delay to the  maximum extent



reasonable and to.propose  a  time when  the preventive  measures



will be  fully  implemented.




     e)   The clause  should state that  events triggering  the force




majeure  clause do not automatically  excuse  the defendant  from




complying  with  the  terras of  the  decree.   Ultimate compliance




should occur as  quickly  as possible,  consistent  with  the  decree's

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                             -26-

terms and any extensions granted because of the force majeure

clause.

     f)   Finally, the clause should provide some mechanism

for dispute resolution, since there may be instances in which EPA

and the defendant cannot agree that a specific delay is caused by

circumstances beyond the defendant's control.  (See the discussion

of dispute resolution provisions on page 19.)  It is acceptable

to allow tRe defendant  to submit such disputes to 'the court  for

resolution if agreement cannot be  reached between the parties.

                            EXAMPLE-

     a)  If any  event occurs which causes or may cause delays
         in the  achievement of compliance at Defendant's  faci-
         lities  as provided in this decree, Defendant shall
         notify  the Court,  the Plaintiff and Intervenors,  in
         writing within 20  days  of the  delay or anticipated
         delay,  as applicable.   The notice shall describe  in
         detail  the anticipated  length  of the delay, the  precise
         cause or causes of the  delay,  the measures  taken  and  to
         be taken by Defendant to  prevent or minimize the  delay,
         and  the timetable  by which those measures will be
         implemented.   The  Defendant shall adopt all reasonable
         measures to avoid  or minimize  any such delay.  Failure
         by Defendant  to comply  with the notice requirements
         of  this paragraph  shall render this paragraph void  and of
         no effect as  to the particular incident involved  and
         constitute a  waiver of  the defendant's right to  request
         an extension  of its obligation under  this Decree
         based on this  incident.

      b)  If  the  parties agree  that the  delay or anticipated  delay
         in  compliance  with this decree has  been or  will  be  caused
         by  circumstances entirely beyond  the  control of  Defendant,
         the  time for  performance  hereunder  may be extended  for  a
         period  no  longer  than  the delay resulting from such
         circumstances.   In such event, the  parties  shall stipulate
         to  such extension  of  time and  so  inform  the Court.   In  the
         event  the  parties  cannot  agree,  any party may  submit
         the  matter  to this Court  for  resolution.

      c)  The  burden  of proving  that any delay  is  caused  by
         circumstances entirely  beyond  the  control of  the
         Defendant  shall  rest  with the  Defendant.   Increased

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                             -27-

        . costs or expenses associated with the implementation
         of: actions called for by this Decree shall not, in any
         event,  be a basis for changes in this decree or extensions
         of time under paragraph b.   Delay in achievement of one
         interim step shall not necessarily justify or excuse delay
         in achievement of subsequent steps.

     7.   Public Comment on the Decree

     A Department of Justice regulation ca~lls for a thirty day

public comment period on consent decrees which enjoin the dis-

charge of pollutants.  (See, 28 CFR §50.7)  A provision should

be included in these decrees which acknowledges this reguire-

ment.

                           EXAMPLE

             The parties agree and acknowledge that final
             approval and entry of this proposed decree
             is subject to the requirements of 28 CFR
             §50.7.  That regulation provides that notice
             of the proposed consent decree be given to
             the public and that the public shall have
             at least thirty days to make any comments.


      In  the usual  case, the proposed consent  decree  is  executed

by the parties and  forwarded  to  the  court with a cover  letter

advising the court  that the decree should not be signed  by  the

Judge or entered until the  thirty day  comment period has passed.

When  the comment period has passed,  the  court is advised either

that  no  adverse comments were  received or  is  advised of  comments

received and  the  EPA/DOJ  responses to  the comments.  The court  is

then  requested  to  sign and  enter the decree.

      8.  Retention of Jurisdiction

      The decree  should include a provision which recites  that  the

court will  retain  jurisdiction of  the  case  in order  to  enforce

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                             -28-

the decree and resolve disputes under the decree not specifically

provided for elsewhere.

                           EXAMPLE

             The Court shall retain jurisdiction to modify and
             enforce the terms and conditions o£ this decree
             and to resolve disputes arising hereunder as
             may be necessary or appropriate for the construction
             or execution of this decree. .
                                          - -•'

     9.   Confidentiality of Documents

     In some actions, defendant will claim  that documents

provided by it are confidential in nature.  In these cases,

the decree should provide that EPA regulations will control with

regard  to such documents.

                           EXAMPLE

             All information and documents  submitted by
             defendants  to EPA/State pursuant to this
             decree shall be subject to  public inspection
             unless  identified and deemed confidential by
             defendants  in conformance with 40 CFR  Part  2.
             The information and documents  so identified
             as confidential will be disclosed only in
             accordance  with EPA and State  regulations.

      10.  Modification of the  Consent Decree

      Consent decrees  entered by  the court are court orders and

as  such, may not be modified without the  court's approval.

Currently,  consent decrees are executed  on  EPA's behalf  by

the Special Counsel  for  Enforcement or her  delegatee.  There

fore, modifications  of decrees should be similarly  executed.

A  provision in  the decree reciting  these principles will

help  to make  clear  to defendants what  they  must do  in

order to  modify  the  decree.

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                             -29-

                           EXAMPLE

             Any modification of this consent decree must be
             in writing and approved by the Court.   Any such
             written modification must be executed on EPA's
             behalf by the Special Counsel for Enforcement
             or her delegatee or successor.

     11.   Termination of the Decree and Satisfaction

     Since the defendant has agreed to settle the case and avoid
                                         --•
trial,  it is appropriate that EPA agree to a termination of the

consent decree after the defendant has complied with all consent

decree provisions.  This provision is most appropriately placed- at

the conclusion of the decree or  in the introductory  'front end'

provisions of the decree.

     This termination may be automatic upon completion of  the  terms

of the decree.  However, a provision calling for a motion  for

termination by  the plaintiff is  preferred.  This'required  action

by EPA would aid  in eliminating  disputes as to whether compliance

was achieved or not and  as  to when the consent decree  terminated.

The decree may  provide  for a time  lag between the time the defen-

dant comes into compliance with  the decree and the  termination of

the decree.  This  time  lag ensures that  the defendant  continues  to

comply for a specified  period of time.   When  termination  is delayed

in this manner,  the time period  specified  is  at  least  180  days  in

most instances.

                            EXAMPLE

             The  defendant  must  demonstrate  to the  plaintiff's
              satisfaction  that  the defendant  has  complied  with
              all  oE  the terms of the  decree.  One hundred  and
              eighty days (180)  after  such  a  showing  by the
              defendant,  the  plaintiff  agrees  to  move the  court
              to terminate  the decree.

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                             -30-

     Additionally, during negotiations the defendant may insist

on a provision which recites that the decree constitutes a full

settlement of the action contained in the complaint and that this

settlement bars the plaintiff from any other action against the

defendant based on those violations.  Such a clause should not

be included in a decree unless the defend-a^it specifically insists

on its inclusion.  These clauses should be narrowly drawn so that

it is clear that only the specific action in the complaint is

covered.  Also, cases with multiple defendants or potential defen-

dants require extra care so  that these other parties are not

released  from liability when that is  not  intended.

                           EXAMPLE

             Plaintiff and Intervening Plaintiff will  refrain  from
             initiating any  other civil enforcement action pursuant
             to Section 113(b)   of  the Act, 42 U.S.C.  §7413"", Section
             304  of the Act, 42  U.S.C. §7604, or applicable state
             law, with respect to the limitations contained in
             this Decree for the emission of particulate
             matter and visible  emissions from the  bark boiler
             while  Defendant is  in  compliance with  this Decree.

      12.  Costs of  the Action

      A  consent decree should contain  a provision which allocates

responsibility for  payment of court  costs incurred  in  the  action

up  to the date of settlement.  In most negotiated  settlements,

each  party  bears  its  own costs.

                            EXAMPLE

             Each'party  in  this  action shall  bear  its
             own  costs.

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                             -31-

     13.  Execution of the Decree

     The decree should include signature lines for those who

will execute the decree on be'half of the parties and for the

court.

     The authority to settle judicial actions is currently
                                        * "T
delegated to the Associate Administrator for Legal and Enforce-

ment Counsel.  Therefore, consent decrees-must be signed by

the AA  for OLEC or his delegates.  Additionally, in keeping with

EPA's Memorandum of Understanding with  the Department of Justice,

settlements of cases  in which DOJ represents the Agency require

the consultation and  concurrence of  the Attorney General.

Therefore, the decree should be  signed  by  the Attorney General

or his  delegatee.

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                          APPENDIX A
                   CONSENT DECREE CHECKLIST
   (This checklist can be used as a guide for inclusion  of
                 consent decree.provisions.)
NAME OF CASE:
U.S. v.  	
Civil Action No.
PROVISION
    INCLUDED
    I YES NO
COMMENTS
Identification of Parties
 and cause of action -

 Plaintiff & initiation
 of the action

 Defendant - where defen-
 dant does business or is
 incorporated, facilities
 covered by decree

 Intervenors
Procedural history - prior
consent decrees and status
prior administrative action
Transitional Clause
Jurisdiction
Statement of  claim - com-
plaint  states  claim  for
relief
 Applicability  clause  -
 to  whom  decree  applies
 Public  Interest  -  decree
 is  in  the  oublic interest
 Definitions

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                             -2-
PROVISION
INCLUDED
 YES I NO
                                              COMMENTS
Compliance Provisions -

 Test method for demonstra-
 tion of compliance

 Monitoring provisions

 Entry and access

 Standards defendant must
 mee t

 Schedules - final deadline
 and interim schedules
 construction schedules

 Operation & maintenance
 procedures

 Performance bonds


Notification provision


Civil penalties -

 Amount and form of  payment
 (lump  sum or installment)

 Penalty  payment to  State

 Credi ts


Dispute Resolution


Nonwaiver provision


Stipulated  penalties -

  I terns  covered

 How  payed

 Dispute  resolution

 Escrow arrangements

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                             -3-
PROVISION
INCLUDED
I YES I NO
Force Majeure

 Events covered

 Burden of proof on
 defendant

 Defendant's duties
 (notification requirement)

 Dispute resolution
Public comment on decree
(28 CFR §50.7)
Retention of jurisdiction
  (by  the Court)
Confidentiality of
 documents
Modification of decree
Termination  &  satisfaction
Costs  of  the  action
 Execution  of  decree
COMMENTS

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                    APPENDIX  B
               SAMPLE  CONSENT  DECREES
(Attached  are  consent decrees  from the Air and Water
 Programs.   Although these  decrees do not contain all
 of  the  provisions  discussed  in the guidance,  they
 can be  used as  examples of completed decrees.)

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 IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF MICHIGAN
                  )


                  )   CIVIL ACTION NO.  G 81-289 CA 7

                  )   JUDGE BENJAMIN F. GIBSON

                         • •r
UNITED STATES OF AMERICA,        )

         Plaintiff,     • '

         and

STATE OF MICHIGAN, _et al. ,
                                 )
         Intervening Plaintiff,  )

         v.                      )

PACKAGING CORPORATION OF AMERICA )

         Defendant               )


                          CONSENT DECREE

         Plaintiff, United States of America,.representing the

United States Environmental Protection Agency (hereinafter, the

"EPA"),  having  filed the Complaint herein on June 3, 1981;

         And  the  State of Michigan, representing the Michigan

Department  of Natural Resources  (hereinafter, the "DNR") and the

Michigan Air  Pollution Control Commission (hereinafter, the

"Commission"  or "MAPCC"-) , having moved to intervene as a party

plaintiff  on  June ^, 1981, and this Court having granted said

Motion;

         And  Plaintiff and Intervening Plaintiff having acted  in

concert  in  this action against Defendant, Packaging Corporation

of America;

         And  Plaintiff,  Intervening Plaintiff and Defendant

having agreed that settlement of this matter is  in  the public

-------
interest and that entry of this Decree without further litigati-on



is the roost appropriate means of resolving this matter;



         And Plaintiff, Intervening Plaintiff and Defendant



having moved the Court to entej" this Consent Decree;



         NOW, THEREFORE, before the taking of any testimony,  upon



the pleadings, without adjudication of any issue of fact or law,




without any admission or denial of the violations alleged in the




Complaint and upon consent and agreement of the parties of this



Decree, it  is hereby Ordered, Adjudged and Decreed as follows:








                           STIPULATIONS



         1.  This Court has  jurisdiction of the subject natter



herein and  of the parties consenting for the purpose of entering



this  Consent Decree.' The Complaint states a claim upon which



relief can  be granted against Defendant, under Section 113 of the



Clean Air Act, as amended, (hereinafter, the  "Act"), 42 U.S.C.




7413.



         2.  The provisions  of  this Consent Decree shall apply to




and be binding upon  all the  parties to this action,  their



officers, directors,  agents,  servants, employees,  successors and



assigns, and all persons, firms and corporations having notice of



the Consent Decree  and  who are, or  will  be, acting in  concert  and



privity with the Defendant to  this  action  or  its officers, direc-



tors, agents,  servants,  employees  and  successors and assigns.  In



the event Defendant  proposes to sell  or  transfer its real



property or operations  subject  to  this  Consent Decree,  it  shall
                                -2-

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ad Vise such purchaser or transferee of the existence of this



Decree}  and shall notify all parties to this Decree of such



proposed sale or transfer.



         3.  The parties•agree* and acknowledge that final ap-



proval and entry of this Decree is subject to the requirements of



28 C.'F.R. §50.7, which provides that notice of proposed Consent




Decrees be given to the public and that the public shall have at



least 30 days in which to make any comments,



         4.  Defendant owns and operates a facility in Filer  •



City, Michigan  (hereinafter, the  "Filer City facility") which



includes a niley bark-fired boiler  (hereinafter, the  "bark



boiler").  The  bark boiler  is a source of air pollution emissions



subject  to the  provisions of Michigan Air Pollution Control



Commission Rules and  the  federally  approved Michigan  State



Implementation  Plan  (hereinafter,  the  "Michigan  SIP").



         5.  Former MAPCC Rule R  336.44 established an  emission



limitation for  partlculate  matter of  0.65 pound  of  particulate



matter  per 1000 pounds  of exhaust gases,  corrected  to 50 percent




excess  air,  for the bark  boiler.



          6.  Former MAPCC Rule R  336,41 established a smoke plume



opacity  limitation of 40  percent, generally,  with  certain  exemp-



tions not  material  to this  Decree.



          7.- On May  31,  1972,  the Administrator  of the EPA ap-



proved,  as part of- the  Michigan  SIP,  MAPCC  Rules R 336.44  and R



336.41.
                                -3-

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         8.  On or about November 19,  1979,  Defendant  received



from the EPA a Notice of Violation citing,  inter  alia,  the  bark  '



boiler for violations of R 336. M and  R 336. iU  of the  approved



Michigan SIP.  On December 19,"1979,  a conference was  held  at EPA



offices in Chicago, Illinois, with representatives of  Defendant



and the DNR, to discuss the cited violations.




         9.  MAPCC Rule R 336.1331 currently establishes an




emission limitation for particulate matter of 0.50 pound of



particulate  matter per 1000 pounds of exhaust gases, corrected'to



50 percent excess air, for the bark boiler.



         10. MAPCC Rule R 336.1301 currently establishes a smoke



plume opacity limitation of 20 percent, generally, with certain



exemptions not material to this Decree.



         11. On May  6,  1980,  the  Administrator of the EPA condi-



tionally approved MAPCC Rules R  336.1331 and R 336.1301, as part



of the Michigan SIP  (45 Fed.  Reg.  29791).



         12. On or about August  17, 1982, Defendant received from



the EPA a  Notice  of  Violation citing  the bark boiler for viola-



tions of R 336.1301  of  the Michigan SIP.




         13- Defendant  owns  and  operates a boiler  (hereinafter,-



the  "No. 5 boiler")  at  its Filer City facility,  which  boiler was



formerly a recovery  boiler but  is currently  fired  with  natural



gas.  Defendant has  applied  to  the Michigan  DNR  for an  installa-



tion  permit  to  convert  the No.  5 boiler  to multi-fuel  operation



 (including the  combustion  of coal, wood,  bark, wood waste,




sludge,  and  natural  gas).  The  Commission  has  recently  approved.

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the Issuance of such installation permit.   The converted No.  5'

boiler will have a baghouse collector as its air pollution con-.

trol equipment (hereinafter the "No. 5 baghouse").
                              ORDER

         In consideration of the foregoing and the representa-

tions made in open Court by the parties 'Hereto, IT IS HEREBY

ORDERED:
         Defendant shall achieve, demonstrate, and maintain final

compliance with MAPCC Rules R 336.44, R 336.41, R 336.1331 and R

336.1301, and other  emission limitations specified in this

Consent Decree, in accordance with the following paragraphs:



                        COMPLIANCE PROGRAM

         1.  Defendant  shall install an add-on collector  (side-

stream separator) to the existing pollution control equipment of

the  bark boiler according  to the following schedule:

             a.   commence  engineering and
                  preparation of  plans and
                  specifications                   Completed

             b.   submit copies of plans
                  and specifications  to EPA
                  and DNR;  submit applica-
                  tion to DNR for installation
                  permit                          Completed

             c.   issue  purchase  order for
                  collector                       1/31/83

             d.   begin  on-site  construction       8/31/83
                                -5-

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             e.   complete  construction  and
                 installation                      10/31/83

             f.   complete  "shakedown" and
                 achieve compliance  with a
                 particulate  emission limita-
                 tion  of-.'lJO  pound of particu-  ,
                 late  matter  per  1000 IDS of
                 exhaust gases, corrected to
                 50 percent  excess air, and
                 MAPCC Rule  R 336.1301             11/30/83

             g.   demonstrate  compliance with
                 the emissions limitations  set
                 forth in  Subparagraph  l(f)  in
                 accordance  with  Appendix A        12/31/83


         2.   If  Defendant  elects  to  proceed  with  the No.  5  boiler

conversion and construction  of the No.  5 baghouse in lieu of the
                            -s
compliance program set forth in Paragraph 1  it  shall, on  or

before March 15, 1983, so  notify  the EPA and  the  DNR, in  writing,

and certify that it has sent out  requests for bids for the com-

pletion of the No. 5 boiler  conversion  and  No.  5  baghouse and

that the necessary funds have been appropriated.   Upon such

notification and certification, Defendant shall proceed with the

compliance program set forth in Paragraph 3 and shall be  there-

after excused from complying with subsequent requirements of

Paragraph 1; provided, that if any stipulated penalties have

accrued, prior to  the date of such notification and  certifica-

tion, for failure  to  comply with the requirements of Paragraph  1

such penalties shall  then become due and payable  upon demand.   If

the notification  and  certification described herein  is not  given

to the EPA and the DNR on or  before March 15, 1983,  Defendant

shall not be  relieved from the obligation under  Paragraph  1  to
                                -6-

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install the sidestream collector in accordance with the terms .

thereof.

         3.  If Defendant elects to proceed with the No.  5 boiler

conversion and complies with the notice and certification re-

quirements of Paragraph 2 on or before .March 15, 1983, it shall

install the No. 5 baghouse and either (a) route the bark boiler

exhaust through the No, 5 baghouse, or (tr^)' complete the No. 5

boiler conversion such that no bark or wood wastes are burned in

the bark boiler, but will be burned instead in the No. 5 boiler,

the emissions of which will be controlled by the No. 5 baghouse,

in accordance with  the following schedule:
                                                  Completed

                                                  Completed

                                                  6/30/83

                                                  2/28/814
             a.   prepare specifications.and
                 submit copies to EPA and  DMR

             b,   obtain installation permit

             c.   award contract

             d.   begin on-site construction

             e.   complete construction and
                 installation and achieve  com-
                 pliance at the bark boiler
                 with a particulate emission
                 limitation of .05-pound of
                 particulate matter per 1000
                 Ibs of exhaust gases, cor-
                 rected to 50 percent excess
                 air, and MAPCC Rule R-336.1301

             f.   demonstrate compliance with the
                 emissions limitations set forth
                 in Subparagraph 3(-e) in accor-
                 dance with Appendix A            7/31/8*1

If Defendant elects to proceed with the compliance program set

forth in this paragraph it shall not operate the bark boiler
                                                   6/30/84
                                -7-

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after June 30,  1984, unless the emissions thereof are controlled


by the No. 5 baghouse.


         4.  If the No. 5 boiler and bark boiler are both con-


trolled by the No. 5 baghouse", at no time shall' they be operated


simultaneously.


         5.  If Defendant proceeds with construction and instal-

                             '   •        • De-
lation of  the sidestream collector in accordance with the terns


of this Decree, nothing herein  shall preclude it from proceeding


with  conversion of  the No. 5 boiler at a later date  (after March


15,  1983); provided,  that such  later election to proceed with the


conversion shall  not  relieve Defendant from any obligation


arising under  this  Decree to complete the requirements of Para-


graph 1,  hereof.





                       INTERIM  REQUIREMENTS


          6.  Until  final  compliance  is  achieved  pursuant  to


Paragraph 1  or  3, whichever  is  applicable, Defendant shall


achieve and  maintain  compliance by  the  bark  boiler  with  MAPCC


Rule R 336.1331  and limit  the  density of visible air contaminants


to  a maximum of 44  percent  opacity,  determined  as  a six-minute


average,  except  that  a maximum of  one six-minute average of  up  to


51  percent opacity  shall be  permitted  in any  one hour.   Com-


pliance shall  be  determined  in accordance with  EPA  Method 9,


Appendix  A',  40 CFR, Part 60.
                                -8-

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         7.   The operation and maintenance procedures  set  forth

in Appendix B shall be implemented and followed until  such time'

as bark boiler emissions are controlled by the No.  5 baghouse.

         8.  Upon request -of the EPA or the DNR,' and within

thirty (30) days of any such request, Defendant shall perform

stack testing at the bark boiler in accordance with Appendix A.

Defendant shall notify the EPA and the DNR of  the date of the

stack test in sufficient time to allow said agencies to observe

the  testing^  Such tests shall not be requested more often than

every three months unless evidence is shown .of noncompliance with

the  interim limits specified above.



                CONTINUOUS MONITORING REQUIREMENTS

         9.   Defendant has  installed  and  calibrated, and  shall

maintain and  operate, a  continuous opacity monitoring  system in

the  stack  which  serves  the  bark  boiler, in accordance  with  the

procedures set  forth  in  40  CFR  Part  60, Appendix 8, or any  other

applicable procedures approved  by  the EPA.

         10.  Beginning  with  the  calendar  quarter commencing  on

January  1, 1983,  Defendant  shall prepare  quarterly  reports  of

"excess" emissions as measured  by  the opacity monitor  identified

in Paragraph  9  above.   The  reports shall  be  submitted  to  the EPA

and  the  DNR  within 30 days  from the  end of each•calendar  quarter

and  shall  include-the following information:

         a.   The magnitude  of "excess" emissions in percent
             opacity,  the date and time of commencement and
             completion  of each time  period of excess  emis-
             sions, and  the cause of each  such exceedance.
                                -9-

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        b.   If  a  malfunction  Is  indicated  in  the  report,  the
            corrective  actions  taken,  if any,

        c.   The date  and  times  the  opacity monitor  was
            inoperative,  or  of  system  repairs  and adjust-
            ment         • "

        d.   When  the  opacity  monitor is  inoperative,
            all equipment malfunctions and corrective
            actions taken.

        e,   Where no  "excess" emissions  have  occurred,  such
            shall be  stated.
For the purposes of continuous emissions reporting pursuant to.

this Decree, "excess" emissions are those opacity monitor

readings which exceed the applicable opacity standard.   Average

values may be obtained by integration over 6 minutes or by

arithmetically averaging a minimum of 2^ equally spaced, instan-

taneous opacity measurements in each 6 minute pe'riod.

         11. During the period from January 1, 1983, through

March 31, 1983, and for the first 90 days following a demonstra-

tion of compliance pursuant to paragraph l(g), Def-endant shall

report  all  six-minute averages of excess emissions during boiler

operation,  including  startup  and  shutdown.  During  all  other

times.  Defendant shall maintain records  of  opacity  during  startup

and  shutdown  and shall report  all six-minute  averages  of  excess

emissions during boiler operation.   During  startup  and  shutdown,

unless  requested otherwise  by  the EPA  or the  DNR, Defendant need

only  report  the times of  excess emissions and the highest  and

lowest  opacity  readings.
                                -10-

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         12. After termination of this Consent Decree,  Defendant

shall continue to maintain the . information required for "excess"

emissions reports at its Filer City facility and make such infor-

mation available to the EPA a"nd the DNR upon request,

         13- Beginning with the calendar quarter commencing on

January 1, 1933, and continuing until all necessary work is

completed, Defendant shall send to the EPA and the DNR,, within 30

days from the end of each calendar quarter, quarterly reports on

progress toward  the achievement of final compliance with the •

terms of this Decree.  If Defendant fails to meet a compliance

schedule increment, it shall notify the EPA and the DNR within 10

days of such failure and set forth the cause therefor.

         14. EPA and DNR repesentatives may at any time during

normal business  hours enter upon the  premises of the Filer City

facility to monitor compliance with this Decree including, but

not  limited to,  performing stack tests on the bark boiler.

Authorized  contractors of  the EPA or  the DNR may,  upon  five days

notice to Defendant, enter upon said  premises for  purposes of

inspecting  the  facility or records pertaining to the bark  boiler

or  stack testing of the bark boiler.

         15-  All information,  reports, and  notifications  required

by  this Decree  to be submitted by  Defendant shall  be sent  to  the

following addr'esses:

     Chief,  Air  Compliance  Branch      Chief, Air Quality Division
     United  States Environmental       Michigan Department  of
       Protection Agency,  Region V      Natural  Resources
    -230  South  Dearborn                P.O.  3ox 30028
     Chicago,  Illinois   60604          Lansing, Michigan 48909
                                -11-

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                        GENERAL PROVISIONS



         16. As consideration for Defendant's entry Into this



Consent Decree and the assumption of the obligations provided  for




herein, Plaintiff and Intervening Plaintiff will refrain from



initiating any other civil enforcement action pursuant to Section




113(b) of the  Act, 42 U.S.C. §7413, Section 304 of the Act, 42




U.S.C. §7604,  or applicable state law, with respect to the limi-



tations contained in this Decree for the emission of particulate



matter and visible emissions from the bark boiler while Defendant



is  in  compliance with this Decree.



         17. This Consent Decree in no way affects Defendant's



responsibility to comply with any other state, federal or local



regulations  or any Order of the  Court including, but not limited



to-,  Section  303 of the  Act, 42 U.S.C. §7604.



         18. Defendant  acknowledges that  it has been advised that



it  rnay be subject to  the applicable requirements of Section 120



of  the- Clean Air Act, 42 U.S.C.  §7420, but reserves the  right to



contest the  assessment  of any  penalties under  such  Section.



         19. Nothing  in this Decree shall be construed as  an



admission by Defendant  of violations  of any  provisions of  the Act



or  of  the Michigan SIP.



         20. Notwithstanding any other  provision of this Decree,



Defendant may  achieve compliance with any emission  limitation or



compliance  requirement  herein  applicable  to  the  bark  boiler by



permanently ceasing  operation  of the  bark boiler.   Stipulated
                                -12-

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penalties associated with failure to perform any such requirement


or achieve such limitation shall cease to accrue on the date of


actual shutdown and written certification thereof to the EPA and


the DNR.  All stipulated-penalties which have a'ccrued prior to


such actual shutdown and certification shall become due and


payable upon demand.

                                       • •r
         21. The EPA and the DNR reserve the right to seek a


modification of this Decree to impose raore. stringent emission


limitations on the  bark  boiler, and to enforce  such more strin-


gent emission limitations, by reason of any revised  (federally


enforceable) state  or  federal law or regulation, including any


revised  implementation plan.  Defendant reserves the right to


seek a modification of this Decree  if the EPA promulgates or


approves a  revised  SI? that contains requirements that  are less


stringent  than the  emission limitations set forth in the Michigan


SI? for  the bark boiler  as of the date of lodging of this Decree.


It  is  the  intent of the  parties  that any such modification of


this Decree be accomplished through mutual agreement on a revised


control  strategy or compliance  schedule  (if necessary), followed


by  a  joint  application to  the Court.


          22. The parties anticipate that the  installation of  the


add-on  collector  (sidestreara  separator)  referred  to  in  Paragraph


1  of-  this  Consent  Decree will  result  in  compliance  with the


particulate and Visible  emission limitations  further specified in


Subparagraph  l(f).  Should such compliance  not  be  achieved  with


proper  operation  and  maintenance of such equipment,  PCA may  apply
                                -13-

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bo' the MAPCC for the establishment of an alternate  visible emis-

sion limitation, pursuant to MAPCC Ru.is R 336 ,1301 (1)( c ) t  the
                      <«
establishment of a particulate mass emission limitation (not to

exceed 0.5 lb per 1,000 pounds of exhaust gases, corrected to 50


percent excess air), or both.  In either case,  the  DNR agrees not

to oppose such application on the basis that compliance can be


achieved by the installation of pollution*control equipment


additional to that  required by this Consent Decree, unless such


additional pollution control equipment is required  because of a

change in the applicable lav/.  Such application shall  in no way


relieve PCA of its  obligation to fully and timely comply with all

interim and final requirements as  set  forth in this decree or

from any liability  for payment of  stipulated penalties pursuant

to Subparagraph 27(e)(l).

         23-  No provision of  any  installation permit necessary  to

implement the compliance program  set  forth  in Paragraph 1  shall

be construed  to conflict with any  express provision of this


Consent Decree.


         24.  Nothing  in  this  Consent  Decree  shall  be  construed  to


limit  the right of  the MAPCC  and  the  DNR to  impose and enforce

more  stringent  emission  limitations  or "pollution control  equip-

ment  requirements for  the bark boiler as the result of any revi-

sion  to  the  Commission's  rules.
                                -in-

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                     CIVIL PENALTY AND COSTS



         25. In consideration of Intervening Plaintiff's agree-



ment to settle this action. Defendant agrees to reimburse the



State of Michigan the sura 'of $_40,000 for its cos,ts and expenses



associated with this case.  Payment shall be made by certified



check payable to "Treasurer, State of Michigan" and sent to the




Assistant in Charge, Environmental Protection Division, Depart-



ment of the Attorney General, Law Building, Lansing, Michigan



48913, "within 15 days after final entry of this Decree.



         26. The United States has .determined that, pursuant to



Section 113 of the  Act, 42 U.S.C. §7413 and the Civil Penalty



Policy of July 8, 1980, Defendant should pay a civil penalty of



$40,000.  Payment shall be made  by certified check payable to



"Treasurer, United  States  of America" and  sent to the Regional



Hearing Clerk, United States Environmental Protection Agency,



Region V, 230 South Dearborn, Chicago,  Illinois 60604,  within  15



days after  final entry  of  this Decree.








                        STIPULATED PENALTIES



          27.  It  is  hereby  stipulated  and agreed aniong  the  parties



that unless excused by  the provisions of Paragraph  28  of this



Decree  the  following  stipulated  penalty provisions  shall apply



and may be  enforced by  the United  States:



          a.   If  Defendant  fails  to  complete  the  installation of



     all pollution  control  equipment  required  by  this  Decree  by



     the  date  specified  (in Paragraph 1  or  3,  whichever is
                                -15-

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applicable) it shall be liable for a stipulated  penalty of



£7,500 for each day it operates the bark boi.ler  without the



required pollution control equipment.



     b.  If Defendant Tails to issue a purchase  order for the



sidestream collector by the date specified in Paragraph l(c),



it shall be liable for a stipulated penalty of $2,000 for




each day such failure continues.    "'*




     c.  If Defendant fails to meet any other interim date of



a construction schedule (in Paragraph 1 or 3, whichever is .



applicable),  it shall be liable for a stipulated penalty of



$1500  for  each day  such failure continues.  Any penalty




liability  under this  subparagraph will  be forgiven if



Defendant  meets the  final  compliance  date in the applicable



schedule for  completion of the  installation of the required



pollution  control  equipment.



     d.  If Defendant  fails to  meet any interim testing



requirement or emission limitation  for  the bark boiler  it




shall  be liable for  the following  stipulated penalties:



          1)   The  sura of $1000 for  each  day that the



              failure to meet  a testing  requirement



              continues;



          2)   The  SUED of  $1,500 for each day  that  a



              violation of an  interim  opacity  limic



              •continues;
                            -16-

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         3)  The sum of $7,000 for each day that  a



             violation of an interim particulars  mass



             emission limitation continues.




     e.  If Defendant Tails to demonstrate final  compliance



with the applicable emission limits under Paragraph 1  (if



applicable) by December 31, 1983, or fails to maintain




compliance thereafter, it shall be liable for stipulated



penalties'as follows:



         1)  The sum of $2,500 per day for each day



             failure to demonstrate and/or maintain



             compliance with the specified particu-



             late mass emission limit in Subparagraph



             l(f) continues.  Defendant's  total



             liability under this subparagraph shall



             not exceed $20,000.



         2)  The sum of $7,000 for each day failure



             to demonstrate and/or maintain com-




             pliance with MAPCC Rule R 336.1331



             continues.



         3)  If Defendant fails to demonstrate and/or



             maintain  compliance with MAPCC Rule R



             336.1331  and also  fails to comply with R



             336.1301, the  additional  sum  of  $2,500



             for each  day  failure  to demonstrate and/



             or maintain compliance with  MAPCC Rule R



             336.1301  continues.
                            -17-

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     f.   If Defendant fails to demonstrate final com-


pliance  with the applicable emission limits under


Paragraph 3 (if applicabl-e) by July 31, 198'^, or fails


to maintain compliance thereafter, it shall be liable


for stipulated penalties as follows:

                                    • •r
         1)  The sum of $2,500 for each day failure


             to demonstrate and/or maintain coc-


             pliance with the specified particulate


             mass emission limit in Su'oparagraph 3(e)


             continues.  Defendant's total liability


             under this subparagraph shall not exceed


             $20,000.


         2)  The sum of $7,000 for  each cay  failure


             to demonstrate and/or  maintain  com-


             pliance with  MAPCC Rule R 336.1331


             continues.


         3)  The sum of $2,500 for  each day  failure


             to demonstrate and/or  maintain  com-


             pliance with  MAPCC Rule R 336.1301


             continues.




      g.  .If  Defendant  fails  to  comply  with any  of  the


operation  and'maintenance  requirements set forth  in


Appendix B of  this  Decree,  it shall be liable for  a
                            -13-

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  1  stipulated penalty  of $2,500  for  each  day  such  failure


    continues .


         h.   If Defendant fails to submit  any  quarterly


    "excess" emissions  report's pursuant to Paragraph 10  or


    progress reports pursuant to Paragraph 13,  it shall  be


    liable for a stipulated penalty of $500 for each day

                                       • -,*•
    such failure continues.


One-half of any payment made under this paragraph shall  be  by


certified check payable to "Treasurer, United  States of  America"


and sent as specified in Paragraph 26, within  15 days after a


demand for payment has been made. The remaining one-half of any


payment made under this paragraph shall be by  certified  check


payable to "Treasurer, State of Michigan" and  sent as specified


in Paragraph  25, within 15 days after a demand'for payment has


been ir.ade.  Such payments  shall not be considered the exclusive


remedy for violation of this Decree,





                           FORCE MAJEURE


         28.  Defendant's obligation to meet any  requirement  set


out in this Decree, including  achievement  of compliance with any


specific emission  standard or  regulation,  may  only  be excused  to


the extent  that  such delay is  beyond  the  control of,-and without


the faul-t of  Defendant.  Defendant  shall  notify  the  EPA and  the


DNR in writing within  twenty  (20)  days of  the  event  which  causes


or may  cause  the  delay,  describing  in detail  the anticipated


length  of the delay,  the precise  cause or  causes of  delay,  the
                                -19-

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                            TERMINATIOK

          31.  This  Decree  shall  terminate  one year after the date'

 scheduled for demonstration of  compliance in Paragraph l(g) or

 3(f),  whichever' is applicable,  or at  such earlier date as Defen-

 dant  has  demonstrated and maintained  compliance with the require-

 ments  of  Paragraph l(f)  or 3(e),  whichever is applicable, as may
                                          • f
 be  -modified by the MAPCC pursuant to  Paragraph 22, for a con-

 tinuous period of six months, unless  either party petitions the

 Court for an extension of this Decree and the Court grants such

^extension.  Until termination of this Decree, jurisdication is

 retained  by this Court for the purpose of enabling any party  to

 this  Decree to apply to this Court at any time for the enforce-

 ment  of any terms of this Decree.
 For Plaintiff - United States of America
   •F. HENRY F^tyCKT II
   Acting Assistant Attorney General-
   Land and Natural Resources Division
   United States Deoartment of  Justice
                                             Dated \
 By
   Assistant United  States  Attorney
   Vestfern Dis/triot  of  Michigan
   VALDAS iy.  ADA^KUS
   Regional  Adrnirtistra'
   U.S.  Environmental    -—--
      Protection  Agency,  Region V
Dated
                                             Dated
                                  0 1
                                  c. ~

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3y
   __                     ___
  DEBORAH CAREER
  Assistant Regional Counsel
  U.S.  Environmental
    Protection Agency, Region V

  Courtney M'.G Price
  Special Counsel  for Enforcement
  United  States  Environmental
     Protection Aaencv
                                           Dated
For  Intervening  Plaintiff  -  State  of  Michigan,  et _al
-
By _
             "' -s
  _..
  E. E. -VALENTIN E
  Assistant  Attorney  General,
  Environmental Protection  Division
    TEWART  FREEMAN
   Assistant-In-Charge
   Environmental  Protection Division
Dated
7 /?/3
                                            Datec
 For  Defendant  -  Packaging Corporation of America
            aU.
   M.R.  HAYMON
   President
   Packaging Corporation of America
                                           Dated  JJ^^U
 Attest
        A. A.  Kaller
        Assistant Secretary
        Packaging Corporation of America
                                -22-

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         Consent Decree entered in accordance with  the  foregoing

this 	 day of     	, 19?-3.
                                Judge Benjamin  ?.  Gibson
                                United  Spates District  Court
                                For The Western District  of
                                  Michigan
3y
  Deputy Clerk
                                -2?-

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                                                           JUL 15
          IN THE UNITED STATES DISTRICT COURT FOR THE
               SOUTHERN DISTRICT OF WEST VIRGINIA

                  Civil Action No.  77-1163-BL
UNITED STATES OF AMERICA,        )
                                 )
             Plaintiff,          )

v.                               )
                                 )        CONSENT ORDER
CITY OF WELCH, McDOWELL COUNTY,  )
WEST VIRGINIA, a municipal       )
corporation, WELCH SANITARY      )
BOARD, and the STATE OF WEST     ) •
VIRGINIA,                        )
                                 )   .
             Defendants.         )
     THIS MATTER having  come before the Court upon the

 application of  the United States of America for entry of this

 order;  and

     WHEREAS,  the United States of America, the City of Welch

 (hereinafter,  "Welch"),  Welch Sanitary Board  (hereinafter,

 "Board"), and  the State  of  West Virginia have consented to

 entry  of  this  order;

     WHEREAS,  this Court has jurisdiction  of  this action

 pursuant  to  28 U.S.C.  1345  and  33 U.S.C. 1319(b);

     WHEREAS,  venue  is proper  in  this Court pursuant  to 28

 U.S.C. 1391 (b) and  (c);  and

      WHEREAS,  the  Court  finds  that: Welch  owns  a  sewage

 collection  system  in McDowell  County, West Virginia,  which

 discharges  pollutants into  Tug  Fork;  Welch controls  the

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measures taken and to be taken by Defendant  to prevent or mini-


mize the delay, and the timetable by which those measures will be


implemented.  Defendant will adopt all  reasonable measures  to


avoid or minimize any such del"ay*


         29- If the parties agree that  the delay or anticipated


delay was beyond  the control of, and without  fault of, Defendant

                                         ---*'
this IT.ay be  so stipulated and  the parties may petition the  Court


for appropriate modification of  this Decree.   If the  parties  are

ur.able  to reach such agreement,  any party may petition the  Court


for appropriate relief.  The burden of  proving that any  delay  was


beyond  the  control of,  and without fault  of,  Defendant is  on


Defendant.   Failure by  Defendant to comply with  the notice  re-


quirements  of  this paragraph  shall  render Paragraphs  28  through

30  void, and  of no force and  effect as  to  the particular  incident


involved and constitute a waiver of Defendant's  right to request


an  extension of its obligations  under  this Decree  based  on such


incident.   Increased  cost, by  Itself,  shall  not  constitute an


appropriate  Justification, for the  purposes  of this  paragraph, to


excuse  noncompliance  with  any  of the  terms  of this Decree.


         30. An extension  of  one compliance  date based  upon a


particular  incident  does  not  necessarily mean that Defendant


qualifies  for  an  extension  of  a subsequent  compliance date or

dates.   Defendant must  make  an individual showing of proof re-


garding each incremental  step or other requirement for which an


extension  is sought.
                                -20-

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financing and initiation of construction of sewage treatment




works for that city, Welch created the Board to supervise,




control, administer, operate and maintain any and all works for




the collection and  treatment of sewage which are owned by Welch;




Tug Fork is a navigable waterway as defined in the Clean Water




Act,  section 502(7), 33 U.S.C. 1362(7); on August 23, 1974,




pursuant to 33 U.S.C.  1342, and based upon an application



submitted.on behalf of the Board,  the United States  (through



the U.S. Environmental Protection  Agency)  issued a national




pollutant discharge elimination system  (hereinafter,  "NPDES")




•permit  for  the discharge of pollutants  from the Board's  sewage



 treatment system;  the  terms or  conditions  of the permit  were




 not contested by  the Board, Welch, or  the  State; the  permit



 became  effective  on September  22,  1974;  the permit required




 the Board to  submit to the  United  States  not later than  March



 22, 1975, a compliance schedule  for  termination  of its  discharge




 in accordance with 33  U.S.C.  1311 (b) (1) (B);  the  Board has




 failed  to  submit  the compliance  schedule in  violation of the




 permit; on  May  17, 1976,  the  United  States pursuant  to  33



 U.S.C.  1319(a)(3) and  (4)  issued  findings of violation  and an




 order for  compliance to the Board,—citing the  Board  for




 violations  of its- permit conditions  and directing the Board to




 submit  to the United States not later than June 18,  1976, a




 schedule for compliance; the Board has failed  to submit the




 schedule for compliance in violation of the May 17,  1976,



 order;  neither Welch  nor the Board have constructed  a sewage




 treatment works capable of achieving effluent  limitations

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                             - 3 -






based upon secondary treatment as defined by the Adainstrator



of the Environmental Protection Agency pursuant to 33 U.S.C.




1314 (d)(l); Welch and the Board have continued to discharge




pollutants within the meaning of 33 U.S.C. 1311; the discharge




of pollutants by Welch and the Board is noj: in compliance with




an NPDES permit and is in continued violation of 33 U.S.C.




1311; and



     WHEREAS, the parties have agreed  that this order shall be



lodged and made available for public comment prior to entry by




the  Court, pursuant to the procedures  identified at 28 C.F.R.



50.7; and




     WHEREAS, entry of this  order  is in  the public interest;




NOW  THEREFORE,



     Pursuant to F.R.C.P. 65, IT  IS on this 	 day  of




	, 1983, ORDERED  that:




      1.  Municipal  compliance plan.




     Within  120 days  of  the  entry  of  this  order, or by November




30,  1983,  whichever is earlier,  the Board  shall  pursuant  to




F.R.C.P.  5 file with  the Court  and serve upon  an  individual



designated by  the  United States  Environmental  Protection  Agency



 (hereinafter,  "EPA designate")  and.serve upon  an individual




designated by  the  V/est Virginia Department of  Natural Resources




 (hereinafter,  "VJVDNR  designate")  a plan  (hereinafter,




 "municipal compliance plan") for achieving compliance with the




 Clean Water Act.   The Board  shall file a municipal compliance



 olan which:

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                             - 4 -






        (a) has been certified by a registered professional




engineer;




        (b) identifies a treatment technology which the Board




proposes to use and which will achieve the level of effluent




quality attainable through the application of secondary




treatment;



        (c) proposes that construction of the treatment facility



which will achieve the level of effluent quality attainable



through the application of secondary  treatment will be started




by no later than May 1, 1984;




        (d) proposes that construction of the- treatment facility




will be completed no later than May  1, 1986;



        (e) proposes that the  level  of effluent  quality




attainable 'through  the application of secondary  treatment  will




be achieved no later than August  1,  1986;



        (f) estimates  the capital  requirements  of  the  treatment




technology proposed;




        (g) estimates  the operation  and  maintenance  costs  of



the  treatment  technology proposed;



         (h) identifies  the  financial mechanisms proposed  to be




used  by the Board  for  facility cons-truction;



         (i)  identifies  the  financial mechanisms proposed  to be




used  by the  Board  for  generating adequate revenues for operation




 and  maintenance;



      2.   Modifications to  municipal  compliance  plan:   The




 United  States may  inform the Board of any modifications  which




 the  United States  proposes  to the municipal compliance plan.

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                             - 5 -






In Che event the Board agrees to modify the municipal compliance




plan as proposed by the United States, the Board shall pursuant




to F.R.C.P. 5 file with the Court, and serve upon the EPA




designate and the WVDNR designate, the modifications to which




the Board and the United States have agreed.  In the event the




Board does not agree to modify  the municipal compliance plan




as proposed by the United States  (or in the event the Board



fails to file with the Court modifications  to which the United



States and the Board have agreed), the United States may




pursuant to F.R.C.P. 5 file with  the Court  and serve upon the




Board proposed modifications to the municipal-compliance plan.




The municipal compliance plan  shall be deemed to be modified




as proposed by the United States  unless, within  fourteen days



of the filing of  the proposed  modification, American Cyanamid



applies to the Court pursuant  to  F.R.C.P.  7 for  further order.




      3.  Implementation of municipal  compliance  plan.  The




Board  shall  implement  the municipal compliance  plan  filed by




the Board,  as modified by  (a)  modifications filed with  the




Court  to which  the  Board and  the  United States  have  agreed,




 (b) modifications filed by  the United States  and for  which



timely motion  for further  order has-not been  made by  the  Board,




and  (c)  further  order  of  the Court.




      4.   Minimum effluent  limitations.  After August  1,  1986,




 the  Board  and Welch are  enjoined from discharging any effluent




 from  the  collection system  or treatment works that  does  not



 achieve  the following effluent limitations:




         (i)  the arithmetic  mean of the values for biological

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                             - 6 -






oxygen demand for effluent samples collected in any period of



thirty consecutive days shall_ not exceed 30 milligrams per



liter;




        (ii) the arithmetic mean of the values for biological



oxygen demand for effluent samples collexSted in any period of



seven consecutive days shall  not exceed 45 milligrams per



liter;



        (iii) the arithmetic  mean of  the values for biological



oxygen demand for effluent samples collected in any period of



thirty days  shall not  exceed  15 percent of  the arithmetic mean



of the values for influent samples collected at approximately



the  same  times  during  the  same  period;        .  .



        (iv) the arithmetic mean of the values of  suspended



solids for  effluent  samples   collected  in  any period  of  thirty



consecutive  days shall not exceed 30  milligrams per  liter;



        (v)  the arithmetic mean of  the  values of  suspended



solids for  effluent  samples collected in any period  of seven



consecutive days  shall not exceed 45  milligrams per  liter;



         (vi) the  arithmetic mean  of the values  of  suspended



solids  for  effluent  samples collected in a period  of thirty



consecutive days  shall not exceed 15  percent of  the  arithmetic



mean of  the values  for influent samples  collected  at approximately



 the  same  time  during the  same period;



         (vii)  the  effluent values  for pH  shall  be  maintained



within the  limits  of 6.0  to  9.0;  and



         (viii)  the  fecal  coliforra content  of  the  effluent shall



 not  exceed  200 per. 100 milliliter as  a 30-day  geometric  mean

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                             - 7 -




based on not less than five samples during any 30-day period




nor exceed AOO per 100 milliliter in more than ten percent of




all samples during any 30-day period.




     5.  Compliance with NPDES permit.  After August 1,  1986,




the Board and Welch are enjoined from discharging any pollutant



from the collection system or treatment works except in




compliance with an NPDES permit issued pursuant to the Clean



Water Act.




     6-  Penalty.  The Board  shall pay a civil penalty of




[amount], by tendering a check  in  that amount payable to the




order  of the Treasurer of  the United .States within thirty




days of the entry of  this  order.




     7•  Stipulated penalties.  If the Board violates any



provision of this order, the  Board shall pay a civil penalty



of




         (i) $100  per  day for  each  of  the  first 30 days of




violation,




         (ii) $200 per day  for each of the  next 60 days of



violat ion,




         (iii)  $500  per day for  each of the next  60  days  of



violation,  and




         (iv) $1000  per day for  each of the next  60  days  of




violation.  Thereafter,  the  United States  may  apply  to the




Court  for  appropriate penalties.   The United  States  may  apply




 to the Court  at any time for other non-penalty relief  in the



 event  of any  violation of  the Act, of any permit issued



pursuant  to the Act,  or of this order.

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                             - 8 -






     8.  Nonwaiver provision.   This order in no way relieves



any defendant of responsibility to comply with any other State,



Federal or local law or regulation.  The order dated May 17,



1976, of the United States EPA retains full force and effect.
                               U.S.D.J.

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GUIDANCE ON EVIDENCE AUDITS OF CASE  FILES
                                •r
 EPA GENERAL ENFORCEMENT POLICY #GM - 20
                       UNITED STATES ENVIRONMENTAL
                           PROTECTION AGENCY

                       EFFECTIVE DATE:    ^EC ^

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       I UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
       /                WASHINGTON. D.C. 20460
 *'<. it--'.'-''

                            DEC a u I963
MEMORANDUM

SUBJECT:  Guidance for Evidence Audit of Case Files for
          Civil Referrals
FROM:     Courtney M. Pric<
          Assistant Administrator foV Enforcement and
            Compliance Monitoring

TO:       Assistant Administrators
          Regional Administrators, Regions I-X
          Regional Division Directors, Regions I-X
          Regional Counsels, Regions I-X

      I recently  forwarded to you a draft policy relating to
the  performance of an evidence audit in all cases which were
to be referred to Headquarters for possible judicial enforcement
and  invited comments upon  that draft policy.

      I have received comments from many of you, and have
considered them carefully.  Most of the comments were directed
to the requirement that  evidence audits be mandatory  in all
cases which were  about to  be referred to  Headquarters.  While
I  firmly  believe  that evidence audit would be  useful  in all
cases, ,1  agree that  it should not be mandatory.  I have,
therefore, revised the policy so that those cases which,  in
the  opinion of the Regional Administrator, are sufficiently
complex or involve substantial quantities of  documents, may
be subjected  to an evidence audit before  referral at  the
option of the Regional Administrator.  After  referral,  I  may
order an  evidence audit  should I believe  one  to be warranted.

      Attached is  the  final policy on evidence  audits  which
incorporates  the  approach  described above.  Your comments on
the  draft were appreciated, and  I would welcome additional
suggestions as experience  with evidence auditing  is  gained
under this policy.

Attachment

cc:   Director, NEIC
      Deputy Admi r. i strator

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                 GUIDANCE FOR EVIDENCE AUDIT OF

                 CASE FILES FOR-CIVIL REFERRALS


INTRODUCTION


                                          • •r
Cases developed  by  EPA,  pursuant to  the  environmental statutes,

and referred  to  the  Department  of  Justice  for  potential  civil

litigation, must  be  based  upon  rigorously documented  evidence.

and supporting  data  in  order  to  minimize  delay   in  filing,

facilitate discovery  proceedings,  present a convincing  case for

the EPA  and  DOJ attorneys  engaged  in  pre-trial  negotiations,

and finally,  to  prevail  in  the   courtroom.   EPA  Headquarters

and Regional  staffs have demonstrated  widely  varying approaches

to the  provision   of  well-ordered   referral  packages  and  the

supporting documentation.



The types  and volume of  documents  relating to a  case are  often

overwhelming.  For  instance,  a  single hazardous  waste  case may

involve  100,000  or  more documents.   The  attorneys are confronted

with  difficult  tasks of assembling and organizing all documents,

preparing  witness  lists,  and  extracting  information  necessary  to

conduct  interrogatories   and   depositions.   Documents supporting

EPA  civil  referrals  may originate  in Regional  and  Headquarters

program  offices,- State  files  and/or contractors performing  sup-
                    i
port  services for  the Agency.   Records obtained  from the  prospec-

tive  defendants  are often so  voluminous  and/or  disorganized that

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it is difficult for  the  EPA/DOJ  case management team to effec-

tively review them.  Lack of  sufficient  assembly and organiza-

tion of this material  becomes obvious at the time of discovery

(production of documents) or  during  settlement and negotiation

discussions.  The consequences may include unknowingly exposing
                                           * *r
case strategy, inadvertently  releasing  privileged or confiden-

tial material, or being unaware of documents that could strength-

en or  weaken  the case.   The  Agency  position  is vulnerable to

attack  if  the  EPA/DOJ  case  management  team  is  not  assured of

the  integrity  of the  supporting documentation,  as   well  as  a

case  file  that  is  organized  for  rapid  and  efficient  access.

Indeed, attack of  the  government's documentation and  procedural

weaknesses  is  now  being advocated  in journals and papers of  the

legal  profession as  a  tactic  for defending  attorneys.



Evidence  Auditing



An evidence audit includes the review,, inventory  and organization

of the documents that make  up  a  case  file.   The  audit of  a

simple case may involve  only the assembly  and handwritten com-

pilation  of the  documents present  and a  review of the case files

 to ensure that all  pertinent documents  are present.   The audit

 of a highly  complex case involving  large  numbers  of documents

 may involve, in addition to assembly and  inventory, computerized

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listing and sophisticated  categorization,  construction  of evi-



dence profiles, and elaborate formatting as  an  aid to understand-



ing the material content of the documents.   These audits assist



case attorneys  in  their preparations  for pre-trial  and trial



phases of Agency litigation efforts.  The evidence audit system



is designed to:  (1) establish an overall case document control



system, (2) provide  quick  and complete  access  to  records,  and



(3) provide a means  for assuring adraissibility of the evidence.



The system  is  flexible  to  accommodate  the  increase  of material



as the  case progresses  and  is  adaptable  to changes  in case



strategy.







With  the  advent  of the  hazardous waste  enforcement programs and



the conduct of  a major portion of the Agency's hazardous waste



site  investigations  by  contractors, the  National  Enforcement



Investigations  Center  was  assigned responsibility  for  making



evidence  audits  available to  Regional  and Headquarters  staffs



for enforcement  case referrals developed  as  a  result of these



activities.  Accordingly,  an evidence audit  capability  has  now



been  available -for approximately  three  years  and  is extensively



used  and  endorsed by Regional and  Headquarters  case  management



teams who have availed  themselves  of -this  service.







 Evidence  audits lend  a major  advantage  to  the case  develop-



ment process;  enhancing  the  supportive rationale and  develop-



ment of  legal  strategy of  cases;  detecting flaws in  evidence

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with timeliness that permits repair; the avoidance of presenting
questionable evidence in the court room; and perhaps most impor-
tantly, conserving the time and case-handling capacities of the
case attorneys and Regional and Headquarters Technical staff.
                                         • ff
PROPOSED PROCEDURE

It  is  recognised  that EPA cases vary greatly in terms of com-
plexity involving volume and types of records generated.  The
scope  of the audit should be tailored to the complexity of the
case and to the number of documents  involved.

Because each case is unique, and  not all cases may  require an
evidence audit, the  decision on. whether an  evidence audit will
be  performed,,  either for cases referred directly  to the Depart-
ment of Justice by  the Region  or  before referral  to Headquarters
Office of  Enforcement and Compliance Monitoring prior to  trans-
mittal to  the  Department, will be made  by  the Regional Administra-
tor or his/her designee.  For  those cases  referred  to the Assist-
ant Administrator for Enforcement and  Compliance  Monitoring,
the Assistant  Administrator may require an evidence audit  after
referral by the Region  and  prior to transmittal  to  the  Depart-
ment of  Justice,  should it  become apparent during the review
process  that, such an audit  is  necessary.  In general, the
 audits should include:

      o    document assembly
      o    document organization and review

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                                                	;u.-..,... :^^,;;^.;
     o    evidence profiles  .



     o    document storage and retrieval



Each of these elements is discussed briefly in the following



sections.                   "            ;..
                                        • ?





Document Assembly







The case management team is responsible for identifying all EPA



and contractor groups generating records for the case.  Each of



these organisational components should be instructed  to gather



and transmit complete files to the Regional case attorney or



Headquarters case attorney (for nationally managed cases).



Continuing investigation and data collection,  if any, should be



described in the transmittal memo from the document generating



group to the case management team and a date specified when the



remaining documents will be transmitted.  The  attorney should



also gather all of the documents obtained from the prospective



defendant(a) and place them in one location for review.








The NEIC Contract Evidence Audit Team  (CEAT) can provide assist-



ance to Regional and/or Headquarters case management  teams for



identification of organizational elements generating  documents



participating in the  case  and  to track receipt of records.  The



team can also assist  in  the assembly of documents.

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Document Organization and Review








This process establishes a complete case file of readily retriev-



able records.  The  case  management team decides  on an organiza-



tional format.  A variety of formats is available  (chronological,



by subject  matter,  author,  recipient,  type  of  document,  etc.).



Once this  decision  is  made, the  documents  are  examined  by the



Evidence Audit Team and  placed  in  the  proper order.  Each docu-^



ment is  stamped  with  a  serial  number  and pertinent  identifying



information  is recorded on an  inventory sheet.  Computer services



enhance  this  effort and  can provide keyword search  capability.



Computerized  document  databases  are accessible to all members  of



the case management team  and printouts  can be provided to  facili-



tate document retrieval.   Databases  are  secured  and access  is



limited  to those persons authorized by the case  management  team.



In addition  to describing  each  document,   the  review process  is



designed to  identify  originals,  duplicates, confidential  business



information,  enforcement  sensitive  records,  privileged  material



and evidentiary  records.







Files  obtained from the prospective defendant(s)  are  also organ-



 ized  and  reviewed  in a  similar  manner.   As  new  documents  are



generated or received, they are  added to the  system.

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Evidence Profiles




Evidence profiles  are  graphic or  narrative  presentations  of the

history and chain-of-custody of evidence from the time of collec-

tion through final disposition.  They are particularly useful for
                                           - *f
demonstrating integrity  of  samples  and analyses  where  multiple

laboratories, field teams, or other entities are involved.  Field

and laboratory  records  must  be located  and audited.  Information

documenting the  transfer,  handling,  and  storage  of  samples  is

extracted and summarized.   The profile  identifies the following:



     o    when  evidence  was  collected

     o    who collected  it

     o    all transfers  of  custody

     o    when  received  by  a  laboratory

     o    who received  it

     o    how it was  secured

     o    who performed  analytical tasks

     o    when  tasks  occurred

     o    where samples  are stored after analysis


 The  source  and  serial number  of documents containing this  infor-

 mation  is also recorded.  This procedure  enables  the case  attor-

 ney  to  assess the adequacy of sampling and analysis records  and  to

 rehabilitate deficient areas  in the  paper trail.   The goal is  to

 demonstrate integrity of  the evidence  in order  to  arrive  at a

 stipulation for uncontested entry of the data.

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 Document Storage and Retrieval

 Completed files must be controlled to provide quick and complete
 access to the documents and to prevent deterioration of the filing
 system.  Document control procedures must be followed to keep
^ track of the location and distribution of all records.  A document
 control officer (DCO) or the case attorney must assume this respon-
 sibility..  Files should be securely stored and made available only
 on a check-out basis.  Computerized inventories enable multiple
 users of the files  to identify documents they need to access.

 The NEIC, through its evidence audit -capability has developed an
 additional litigation support service to assist Regional case
 management teama with large and  complex cases.  The procedures
 provide  for  assembly of records, categorizing, stamping, and in-
 ventorying the  documents,  and making microfiche copies.  A com-
 puterized listing of the documents  is prepared which  includes the
 following information:

      o    document  control number
      o    document  date
      o    document  type
      o    source  of document
      o    author
      o    recipient
       o    title or  subject

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^--'r'•"-> •-—••••••• •|1;i'-v---'-f'!-t r'-••"!-"• -'•-•->"'•!*•-*'• I'-'^-n--...^--'--.--^''^.--^^..-..''^^!.'^^^.';'-:..'^-'' '..^r^^jC:^','-:"^'^''''^"':.'"^?' •. J: • •'. •-•:•'•'.."..''.''i- T.'^Trcr'igr '"-'
   Information  retrieval can be selected on any of these  categories.


   Complete  microfiche  sets  can  be* provided  to all  members of  the


   litigation  team and  hard  copies can  be  made available  as  needed.



   This  procedure enables the team  to work  with .the information while
                                                • '?'

   keeping the original files  intact.




   The  evidence  audit  procedures  described  above  are  intended  to


   lead  to admissibility  of  evidence and  to  assure  that  supporting


   documents for  allegations listed  in  the complaint are controlled


   and  available.
                              «



   OPERATIONAL OUTLOOK




    Based on historical data,  completion  of  evidence  audits  in  re-


    sponse to  requests  for assistance  from  the NEIC Evidence Audit


    Team can  be  expected  to  be  from  two  weeks for  cases  involving


    small numbers of  documents to four to six weeks for complex cases


    with large  numbers of documents.



    During  fiscal year  1984,  the  NEIC Evidence Audit Unit  can  assist


    Regions  and Headquarters  elements in establishment and  implemen-


    tation  of  internal document control  and evidence  audit procedures


    as requested.



    To  secure  evidence  audit services,  the Regional  Administrator or


    his/her designee  should  contact either of the  two  Deputy Project

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                                                             10
Officers (Mr.  Robort  Laidlaw or  Ms.  Geraldine  Hilden)  at FTS



234-4656 to  describe  the  nature .of the  case and documents and



work out  schedules and  logistics.   The  requestor  should then



confirm the  request,  in writing,  to the  DPO.

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''t PROI*
           UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                        WASHINGTON, DC E0460
  MEMORANDUM
  SUBJECT:   Guidance on Evidence Audit of Case Files for
            Civil Referrals
  TO:
  FROM:
Assistant Administrators
Regional Administrators
Associate Administrator for Regional Operations
Courtney M. Price
Assistant Administrator for Enforcement
  and Compliance Monitoring
       Attached is the most recent addition to the General
  Enforcement Policy Compendium, the Guidance on Evidence
  Audit of Case Files.  Also attached are revised  Index
  and Table of Contents sheets, reflecting this•addition.
  Please update your Policy Compendium, and if any documents
  are missing, contact Glenn Unterberger, Office of  Legal and
  Enforcement Policy, at 382-4541.
  Attachments
  cc: F. Henry Habicht  II,  DOJ
      Regional Counsels
      Associate Enforcement Counsels

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     POLICY ON CIVIL  PENALTIES
EPA GENERAL  ENFORCEMENT POLICY  SGM - 21
            UNITED STATES  ENVIRONMENTAL
                 PROTECTION AGENCY
                              [•'?• :"•  : f, 10? ?
            EFFECTIVE  DATE:

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                             -1-

Introduction
     This document, Policy on Civil Penalties, establishes a
single set of goals for penalty assessment in EPA administrative
and judicial enforcement actions.  These goals - deterrence,
fair and equitable treatment of the regulated community, and
swift resolution of environmental problems - are presented here
in general terms.  An outline of the general process for the
assessment of penalties is contained in Attachment A.

     A companion document, A Framework for Statute-Specific
Approaches to Penalty Assessments, will also be  issued  today.
This document provides guidance to the user of the policy on
how to write penalty assessment guidance specific to the user's
particular program.  The first part of the Framework provides
general guidance on developing program-specific  guidance; the
second part contains a detailed appendix which- explains  the  basis
for that guidance.  Thus,  the user need only refer to the appendix
when he wants an explanation of the guidance  in  the  first part of
the Framework.

     In order to achieve the above Agency policy goals,  all
administratively imposed penalties and settlements of civil
penalty actions  should, where possible, be consistent with  the
guidance contained  in  the  Framework document.  Deviations from
the Framework's  methodology, where merited, are  authorized  as
long as  the reasons for the  deviations are documented.   Documen-
tation  for deviations  from the Framework  in program-specific
guidance should  be  located in  that guidance.  Documentation  for
deviations from  the program-specific guidance in calculating
individual penalties should  be contained  in both the case files
and  in  any memoranda that  accompany' the settlements.

     The Agency  will make  every  effort  to  urge administrative
law  judges  to impose penalties consistent  with this  policy  and
any medium-specific  implementing  guidance.  For  cases  that  go
to court,  the Agency will  request the  statutory  maximum penalty
in the  filed  complaint.   And,  as  proceedings  warrant,  EPA will
continue  to  pursue a penalty no  less  than  that supported by the
applicable program policy.  Of course,  all penalties must be consis-
tent  with  applicable  statutory provisions, based upon  the number
and  duration  of  the  violations  at issue.
 Applicability	

      This policy statement does not attempt to address the
 specific mechanisms for achieving the goals set out for penalty
 assessment.   Nor does it prescribe a negotiation strategy to
 achieve the penalty target figures.  Similarly, it does not
 address differences between statutes or between priorities of
 different pro'--- = ms.  Accordingly, it cannot be used,  by itself,
 as a basis? frr determining an appropriate penalty in a specific

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                              -2-

action.  Each EPA program office,  in a joint effort with  the
Office of Enforcement and Compliance Monitoring, will revise
existing policies, or write new policies as neede'd.  These
policies will guide the assessment of penalties under each
statute in a manner consistent with this document and,  to the
extent reasonable, the accompanying Framework.

     Until new program-specific policies are issued, the
current penalty policies will remain in effect.  Once new
program-specific policies are issued, the Agency should
calculate penalties as follows:

          0  For cases that are substantially  settled,
             apply the old policy.

          0  For cases that will  require further sub-
             stantial negotiation, apply the new policy
             if that will not be  too disruptive.

     Because of the unique  issues associated with  civil  penal-
ties in certain types of  cases,  this policy does not apply  to
the following areas:

          °  CERCLA §107.  This  is an area  in  which
             Congress has directed a particular kind
             of response  explicitly oriented  toward
             recovering  the cost  of Government cleanup
             activity and natural resource  damage.

          °  Clean Water  Act  §311(f) and  (g).   This  also
             is cost  recovery  in  nature.   As  in CERCLA
             §107  actions,  the  penalty  assessment
             approach  is  inappropriate.

           0  Clean Air Act  §120.   Congress  has set out  in
             considerable detail  the  level  of  recovery
             under  this  section.   It  has been  implemented
             with regulations  which,  as  required  by  law,
             prescribe a  non-exclusive  remedy  which
              focuses  on  recovery  of  the  economic  benefit
             of  noncompliance.   It should  be  noted,  how-
             ever,- that  this  general  penalty  policy  builds
             upon,  and  is  consistent  with  the  approach
             Congress  took  in  that section.

      Much of the  rationale  supporting  this policy  generally
 applies to  non-profit  institutions,  including  government entities.
 In applying this  policy  to  such entities,  EPA must exercise judg-
 ment  case-by-case in  deciding,  for example,  how to apply the
 economic benefit  and  ability  to pay  sanctions, if  at all.  Further
 guidance on the  issue  of seeking penalties against non-profit
 entities will  bf  forthcoming.

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                              -3-

Deterrence	

     The first goal of penalty"assessment is to deter people from
violating the lav/.  Specifically, the penalty should persuade the
violator to take precautions against falling into noncompliance
again (specific deterrence) and dissuade others from violating the
law (general deterrence).  Successful deterrence is important
because it provides the best protection fo-r the environment.  Tn
addition, it reduces the resources necessary to administer  the
laws by addressing noncompliance before it occurs.

     If a penalty  is to achieve deterrence, both the violator and
the general public must be convinced that the penalty places the
violator in a worse position than those who have complied in a
timely fashion.  Neither the violator nor the general public
is likely to believe this  if the violator is able to retain an
overall advantage  from noncompliance.  Moreover, allowing a
violator to benefit from noncompliance punishes those who have
complied by placing them at a  competitive disadvantage.  This
creates a disincentive for compliance.  For these reasons,  it
is Agency policy  that penalties generally should, at a minimum,
remove any significant economic benefits resulting  from  failure
to comply with  the law.  This  amount will be referred to as the
"benefit component" of the penalty.

     V7here the  penalty fails to remove the significant economic
benefit, as defined by the program-specific guidance, the case
development team  must explain  in the case file why  it fails to do
so.  The case  development  team must  then include  this explanation
in the memorandum accompanying each  settlement for  the signature
of the Ass is tant'Administrator of Enforcement  and Compliance
Monitoring, or .the appropriate Regional official.

     The  removal  of  the  economic benefit of noncompliance only
places  the violator  in the same  position as he would have been  if
compliance had been  achieved on  time.  Both deterrence and  funda-
mental  fairness require  that  the penalty  include  an additional
amount  to  ensure  that  the  violator  is  economically  worse off  than
if  it  had  obeyed  the  law.   This  additional amount should reflect
the  seriousness of the violation.   In  doing  so,  the penalty will
be perceived  as fair.  In  addition  the penalty's  size will  tend
to deter other potential violators.

      In  some  classes  of  cases, the  normal gravity calculation  may
be  insufficient to effect  general  deterrence.  This could happen
 if,  for  example,  there was extensive noncompliance  with  certain
 regulatory programs  in  specific  areas  of  the  United States.   This
would  demonstrate that  the normal  penalty  assessments  had not  been
achieving  general deterrence.   In  such  cases,  the case  development
 team should  consider increasing  the gravity  component  sufficient  to

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                              -4-

achieve general deterrence.  These extra assessments should
balance the other goals of this policy, particularly equitable
treatment of the regulated community.

     This approach is consistent with  the civil penalty
provisions in the environmental laws.  Almost all of them
require consideration of the seriousness of the violation.
This additional amount which reflects  the seriousness of  the
violation is referred to as the "gravity component".  The
combination of the benefit and gravity components yields  the
"preliminary deterrence figure."

     As explained later in this policy, the case development
team will adjust this figure as appropriate.  Nevertheless, EPA
typically should seek to recover, at a minimum, a penalty which
includes the benefit component plus  some non-trivial gravity
component.  This is  important because  otherwise, regulated
parties would have a general economic  incentive to delay
compliance until the Agency commenced  an enforcement action.
Once the Agency brought the action,  the violator could  then
settle for a penalty less  than their economic benefit of
noncorapliance.  This incentive would directly undermine  the
goal of deterrence.
Fair and  Equitable Treatment  of  the  Regulated  Community	

     The  second goal  of  penalty  assessment  is  the  fair and
equitable  treatment of  the  regulated community.  Fair and
equitable  treatment requires  that  the Agency's penalties must
display  both  consistency and  flexibility.   The consistent
application of  a  penalty policy  is -important because otherwise
the  resulting penalties  might be seen as  being arbitrarily
assessed.  Thus violators would  be more  inclined to  litigate
over  those penalties.   This would  consume Agency resources  and
make  swift resolution of environmental problems less  likely.

      But any  system  for  calculating penalties  must have  enough
flexibility  to  make  adjustments  to reflect legitimate differences
between  similar  violations.  Otherwise the policy  might  be
viewed as unfair.  Again, the result would be  to undermine
the  goals of  the  Agency  to achieve swift  and  equitable  resolu-
tions  of environmental problems.

      Methods  for  quantifying  the benefit  and  gravity  components
are  explained in  the  Framework guidance.   These methods  signifi-
cantly further  the goal  of equitable treatment of  violators.
To begin with,  the benefit component promotes  equity  by  re-
moving the unfair economic advantage which a  violator may  have
gained over  complying parties.  Furthermore,  because  the  benefit
and  gravity  components are generated systematically,  they

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                              -5-

will exhibit relative consistency from case to case.  Because
the methodologies account for a wide range of relevant factors,
the penalties generated will be responsive to legitimate
differences between cases.

     However, not all the possibly relevant differences between
cases are accounted for in generating the preliminary deterrence
amount.  Accordingly, all preliminary det-eXrrence amounts should
be  increased or mitigated for the following factors  to account
for differences between cases:

          0  Degree of willfulness and/or negligence

          0  History of noncompliance.

          0  Ability to pay.

          0  Degree of cooperation/noncooperation.

          0  Other unique factors specific to the
             violator or  the case.

Mitigation  based  on  these factors is appropriate  to  the extent
the violator clearly demonstrates that  it  is entitled  to miti-
gation.

     The preliminary deterrence  amount  adjusted prior  to  the
start  of settlement  negotiations  yields  the  "initial penalty
target  figure".   In  administrative  actions,  this  figure
generally  is the  penalty  assessed in  the complaint.  In  judicial
actions, EPA will use  this  figure as  the first  settlement  goal.
This  settlement goal  is  an  internal  target and  should  not  be
revealed to the violator  unless  the  case development team  feels
 that  it is  appropriate.   The  initial  penalty  target  may  be
further adjusted  as  negotiations  proceed and  additional
 information becomes  available  or  as  the  original  information  is
 reassessed.
 Swift Resolution of Environmental Problems
      The third goal of penalty assessment is swift resolution
 of environmental problems.   The Agency's primary mission is to
 protect the environment.   As long as an environmental violation
 continues,  precious natural resources,  and possibly public
 health, are at risk.   For this reason,  swift correction of
 identified environmental problems must be an important goal of
 any enforcement action.  In addition, swift compliance conserves
 Agency personnel and resources.

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                              -6--
     Th e Agency will pursue two basic approaches to
quick settlements which include swift resolution of
problems without undermining deterrence.  Those two
are as follows:
promoting
environmental
approaches
     1.   Provide incentives to settle and institute prompt
         remedial action.

     EPA policy will be  to provide specific  incentives to settle,
including the following:                  _;..

          0  The Agency  will consider reducing the
             gravity component of  the penalty for
             settlements  in which  the violator already
             has instituted expeditious  remedies to
             the identified violations prior  to the
             commencement of litigation.^/  This would
             be considered  in  the  adjustment  factor
             called degree  of  cooperation/noncoopera-
             tion discussed above.

          0  The Agency  will consider -accepting additional
             environmental  cleanup,  and  mitigating  the
             penalty  figures accordingly.   But normally,
             the Agency  will only  ac-cept this arrangement
             if agreed  to in pre-litigation settlement.

Other incentives can  be  used,  as  long  as they do not  result  in
allowing  the violator  to retain  a  significant economic  benefit.

      2.   Provide disincentives to  delaying  compliance.

      The  preliminary  deterrence  amount  is based  in  part  upon
the  expected duration  of the  violation.   If that projected  period
of  time  is  extended  during  the course  of settlement negotiations
cue  to  the  defendant's  actions,  the  case development  team  should
adjust  that figure  upward.   The  case development  team should
consider  making  this  fact known  to the  violator  early in the negoti
ation process.   This  will provide  a  strong  disincentive  to  delay
comoliance.
 T/Forthepurposesotthisdocument,  litigation is deemed to
 begin:
           0 for administrative actions  - when the
             respondent files a response to an adminis-
             trative complaint or when the time to
             file expires or
           0 for judicial actions - when an Assistant
             United States Attorney files a com-
             plaint in court.

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                              -7-
Intent of Policy 'a'nd Information Requests for Penalty Calculations

     The policies and procedures, set out in this dqcument and in
the Framework for Statute-Specific Approaches to Penalty Assessment
are intended solely for the guidance of government personnel.
They are not intended and cannot be relied upon to create any
rights, substantive or procedural, enforceable by any party in
litigation with the United States.  The Agency reserves the right
to act at variance with these policies and •procedures and to change
them at any time without public notice.  In addition, any penalty
calculations under this policy made in anticipation of litigation
are exempt from disclosure under the Freedom of Information Act.
Nevertheless as a matter of public interest, the Agency may
elect  to release this information in some cases.
                                   Courtney M. Price
                              Assistant Administrator for
                          Enforcement and Compliance Monitoring
Attachment

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                              -8-

                          ATTACHMENT A
Outline of Civil Penalty Assessment
I.    Calculate Preliminary Deterrence Amount
                                         * ff
     A.  Economic benefit component and

     B.  Gravity component

(This yields the preliminary deterrence amount.)


II.  Apply Adjustment Factors

     A.  Degree of cooperation/noncooperation  (indicated  through
         pre-settlement action.)

     B.  Degree of willfulness  and/or negligence.

     C.  History of  noncompliance.

     D.  Ability to  pay  (optional  at  this  stage.)

     E.  Other unique factors  (including strength  of  case,
         competing public policy  concerns.)

 (This  yields  the initial penalty  target  figure.)


 III. Adjustments to  initial  Penalty  Target Figure  After
     Negotiations  Have  Begun

     A.  Ability to  pay  (to  the extent  not considered in
         calculating initial penalty  target.)

     B.  Reassess  adjustments  used in calculating  initial
         penalty target.   (Agency may want to  reexamine
         evidence  used  as  a  basis for the  penalty  in  the
          light  of  new information.)

     C.  Reassess  preliminary deterrence  amount to reflect
          continued periods  of  noncompliance not reflected
          in  the  original  calculation.

      D.   Alternative payments agreed upon  prior to the
          commencement of  litigation.


 (This  yields the  .vJjusted  penalty target figure.)

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                                          C+
    5 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
    ?                 WASHINGTON. D.C.
«;•'"
MEMORANDUM
                                      ••'f
'SUBJECT:  New Civil  Penaltv  Policy

                           ~  M   —   , L  ^.
FROM:     Courtney M.  Price  -v. . . • _L -.. \ ' >•. /  -- ----.
          Assistant  Administrator  for Enforcement-V.-.^
             and  Compliance Monitoring            :£.£,
TO:
Associate Administrators
Assistant Administrators
General Counsel
Inspector General
Regional Administrators
Staff Office Directors
                                                      -C.
                                                      .>-*
      Attached is the Agency's new civil penalty policy.   This
 new  penalty policy will establish a consistent Agency-wide
 approach  to the assessment of civil penalties while allowing
 substantial flexibility for individual cases within certain
 guidelines.  It is designed to promote the goals of deterrence,
 fair and  equitable treatment of the regulated community and
 swift resolution of environmental problems.  No attempt is
 made to address issues specific to -each statute the Agency
 administers.   Instead, this will be left to guidance developed
 by each program.
     The policy
Penalt i es and A
Penalty
       consists  of  t
       Framework  for
                               o documents:  Policy on Civil
                               Statute-Specific Approaches to
Assessments.  The
           behind
             each
                 first  document  focuses  on  the
                 the  penalty  policy.   The  Framework
                 program  on how  to  develop  medium-
 general philosophy
 provides guidance to
 specific penalty policies.

      The new penalty policy will not be truly effective until
 the medium-specific penalty policies are completed.  Thus it
 is important that work begin on the medium-specific policies
 as soon as possible.  I am therefore requesting that each
 program office meet with  their counterparts in OECM and develop
 workplans for the development of those policies.  Please submit

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                              — 2 —
those workplans to me byCEflBfflBH^@|jp&  The Deputy Adminis-
trator has requested that we add the workplans  to  the Action
Tracking System as we receive them.  If you have any questions
regarding this memorandum or the -new civil penalty policy,
please contact Jonathan Libber of the Office of,Legal and
Enforcement Policy.  He may be reached at 426-7503.

Attachment

cc:  Enforcement Policy Workgroup Members^
     Associate Enforcement Counsels     ''*
     OECM Office Directors

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A FRAMEWORK FOR STATUTE-SPECIFIC APPROACHES


           TO PENALTY ASSESSMENTS:


IMPLEMENTING EPA19- POLICY  ON CIVIL PENALTIES
     EPA GENERAL  ENFORCEMENT POLICY  =GM - 22
                   UNITED STATES  ENVIRONMENTAL
                        PROTECTION AGENCY
                                     FTP  | 6 1984
                   EFFECTIVE  DATE:

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Contents	Pa q e
    Introduction
    Writing a Program-Specific Policy                           2

         I.    Developing a Penalty  Figure                      2

         11.   Calculating a Preliminary' 6eterren.ee Amount      2

         III.  Adjusting the Preliminary  Deterrence Amount      3
               to Derive the Initial Penalty Target Figure

         IV.   Adjusting the Initial Penalty Target Figure      4
               During Negotiations
    Use of the Policy  in  Litigation
    Use of  the Policy  as  a  Feedback  Device
    Append ix                                                    6


          Introduction                                           6

          The  Preliminary  Deterrence  Amount                      6

          I.     The  Benefit Component         '                  6

                A.   Benefit from delayed costs                  7
                B.   Benefit from avoided ccsts .                 9
                C.   Benefit from competitive advantage         10
                D.   Settling a case for an amount less than    11
                    the economic benefit component

          II.    The  Gravity Component                          13

                A.   Quantifying the gravity  of a violation     13
                B.   Gravity factors                            14

          Initial and Adjusted Penalty Target Figure           16

          I.    Flexibility-Adjustment Factors                  17

               A.  Degree  of willfulness and/or negligence     17
               B.  Degree  of cooperation/noncooperation        19
               C.  History of nonccrnpliance                     21
               D.  Ability to pay                              23
                   Other unique factors                        24

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                              11-


Appendix (Con't)


     II.   Alternative Payments                           24

     III.  Promoting Consistency                           27
                                     _~^-
                                     " f

     Use of Penalty Figure  in  Settlement  Negotiations      28

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                             -1-
Introduction
     This document, A  Framework  for  Statute-Specific  Approaches
to Penalty Assessment,  provides  guidance  to  the  user  of  the
Policy on Civil  Penalties  on  how to  develop  a medium-specific
penalty policy.  Such  policies will  apply  to administratively
imposed penalties  and  settlements  of  both.administrative  and
judicial penalty actions.                •'*'

     In the  Policy  on  Civil  Penalties,  the Environmental
Protection Agency  establishes a  single  set of goals  for  penalty
assessment.   Those  goals  - deterrence,  fair  and  equitable
treatment of the regulated community,  and  swift  resolution  of
environmental problems -  will be substantially  impaired  unless
they are pursued in a  consistent fashion.  Even  different
terminology  could  cause confusion  that  would detract  from the
achievement  of these goals.   At  the- same  time,  too much  rigidity
.will stifle  negotiation and  make settlement  impossible.

     The purpose of this  document  is to promote  the  goals of
the Policy on Civil Penalties by providing a framework  for
medium-specific penalty policies.   The  Framework is  detailed
enough  to allow individual programs  to  develop  policies  that
will consistently  further the Agency's  goals and be  easy to
administer.   In addition,  it is  general enough  to allow  each
program to  tailor  the  policy to  the  relevant statutory  provi-
sions  and  the particular priorities  of  each  program.

     While  this document contains  detailed guidance,  it  is  not
cast  in absolute 'terms.  Nevertheless,  the policy does  not
encourage  deviation from this guidance  in either the development
of  medium-specific policies  or in developing actual  penalty
 figures.   Where there  are deviations in developing medium-
 specific  policies,  the reasons for those changes must be
 recorded  in  the actual policy.   Where there  are  deviations  from
medium-specific- policies in  calculating a penalty figure, the
 case  development team must detail the reasons  for those  changes
 in  the case  file.   In addition,  the rationale  behind the deviations
 must  be incorporated   in the  memorandum accompanying  the  settlement
 package to Headquarters or the appropriate Regional  official.

      This  document is divided into two sections.  The first one
 gives  brief   instructions to  the  user on how  to write a medium-
 specific policy.  The second section is an appendix that gives
 detailed guidance  on  implementing each section of the instruc-
 tions  and explains how the instructions are  intended to further
 the goals of  the policy.

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                               -2-
Writing a Program Specific Policy
     Summarized below are those elements that should be present
in a program-specific penalty policy.  For a detailed discus-
sion of each of these ideas, the corresponding portions of the
appendix should be consulted.

                                         • -r
I.  Developing a Penalty Figure

    The development of a penalty figure  is a two step process.
First  the case development  team must calculate a preliminary
deterrence figure.  This figure is composed of the economic
benefit component  (where applicable) and the gravity component.
The second step is to adjust the preliminary deterrence figure
through a number of factors.  The resulting penalty figure is
the initial penalty target  figure. .  In judicial actions,  the
initial penalty target figure is the penalty amount which  the
government normally sets as  a goal at  the  outset of settlement
negotiations.  It  is essentially an  internal settlement goal and
should not be  revealed to the violator unless  the case development
team feels it  is appropriate.   In administrative actions,  this
figure generally is the penalty assessed in the complaint.
While  in  judicial  actions,  the  government's complaint will request
the maximum penalty authorized  by law.

     This initial  penalty target figure  may be further adjusted
in  the course  of negotiations.  Each policy should ensure  that
the penalty assessed or requested is within any applicable
statutory constraints, based upon the  number and duration  of
violations at  issue.
 II.   Calculating  a  Preliminary Deterrence  Amount

      Each program-specific policy must contain a  section  on
 calculating  the  preliminary deterrence figure.  That  section
 should  contain materials on each of the following areas:

           °   Benefit Component.   This section should
              explain:

              a.   the relevent measure of economic benefit
                  for various types of violations,
              b.   the information needed,
              c.   where to get assistance in computing
                  this figure and
              d.   how to use available computer systems
                  to compare a case with similar previous
                  violations.

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                              — 3 —

          0   Gravity Component.  This section should first
             rank different types of violations according
             to the seriousness of the act.  In creating
             that ranking,  the"following factors'should be
             considered:

             a.  actual or possible harm,
             b.  importance to the regulatory
                 scheme and              .'-f-
             c.  availability of data from other
                 sources.

     In evaluating actual or possible harm, your scheme should
consider the following facts:

          0   amount of pollutant,
          0   toxicity of pollutant,
          0   sensitivity of the environment,
          0   length of time of a violation and
          0   size of the violator.

     The policy  then should assign appropriate dollar amounts
or ranges of amounts to  the different ranked violations to
constitute the "gravity  component".  This  amount, added to the
amount reflecting economic benefit, constitutes the preliminary
deterrence figure.


Ill.  Adjusting the Preliminary Deterrence  Amount to Derive the
     Initial Penalty Target Figure  (Prenegotiation Adjustment)

     Each program-specific penalty .policy  should give detailed
guidance on applying the appropriate adjustments to the pre-
liminary deterrence figure.  This  is to  ensure  that penalties also
further Agency goals besides deterrence  (i.e.  equity and  swift
correction of  environmental problems).   Those  guidelines  should
be consistent  with  the approach  described  in the appendix.  The
factors may be separated according  to whether  they can  be con-
sidered before or  after  negotiation has  begun  or both.

     Adjustments (increases  or decreases,  as appropriate) that
can  be made to the  preliminary deterrence  penalty  to develop  an
initial penaly target  to use at  the outset of  negotiation include:

          0  Degree of willfulness  and/or  negligence

          0  Cooperation/noncooperation  through pre-
             settlement  action.

          0  History  of  noncompliance.

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                             -4-

          0  Ability to pay.

          0  Other unique factors (including strength of
             case, competing public policy considerations).

     The policy may permit consideration of the violator's ability
to pay as an adjustment factor before negotiations begin. ' It
may also postpone consideration of that factor until after negoti-
ations have begun.  This would allow the''violator to produce
evidence substantiating its inability to pay.

     The policy should prescribe appropriate amounts, or ranges
of amounts, by which the preliminary deterrence penalty should
be adjusted.  Adjustments will depend on the extent to which
certain factors are pertinent.  In order to preserve the penalty's
deterrent effect, the policy should also ensure that, except for
the specific exceptions described in this document, the adjusted
penalty will: 1)  always remove any 'significant economic benefit
of noncompliance  and 2) contain some non-trivial amount as a
gravity component.


IV.  Adjusting the  Initial  Penalty Target During Negotiations

     Each program-specific  policy should call  for periodic reas-
sessment of  these adjustments during the course of negotiations.
This would  occur  as additional relevant information becomes avail-
able and the old  evidence  is  re-evaluated in the light of  new
evidence.   Once  negotiations  have begun, the policy also should
permit adjustment of the penalty  target to  reflect "alternative
payments"  the violator agrees to make 'in settlement of  the case.
Adjustments  for  alternative payments and pre-settlement corrective
action are  generally permissible  only  before litigation has
begun.

     Again,  the  policy should be  structured  to ensure  that any
settlement  made  after  negotiations have begun  reflects  the
economic benefit  of noncompliance up to the  date of compliance
plus  some  non-trivial  gravity component.  This means  that  if
lengthy  settlement  negotiations  cau'se  the violation  to  continue
longer  than initially  anticipated,  the  penalty  target  figure
should  be  increased.   The  increase would be  based  upon  the extent
that  the violations continue  to  produce ongoing  environmental
risk  and increasing economic  benefit.
 Use  of  the Policy In Litigation	

      Each program-specific policy should contain a section  on
 the  use of the policy in litigation.   Requests for penalties

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                              -5-

should account for all the factors identified in the relevant
statute and still allow for compromises in settlement without
exceeding the parameters outlined in this document.  (For each
program, all the statutory factors are contained in the Frame-
work either explicitly or as part of broader factors.)  For admin-
istrative proceedings, the policy should explain how to formulate
a penalty figure, consistent with the policy.  The case develop-
ment team will put this figure in the administrative complaint.

     In judicial actions, the EPA will use^the initial penalty
target figure as its first settlement goal'.  This settlement
goal is an internal target and should not be revealed to the
violator unless the case development team feels it is appro-
priate.  In judicial litigation, the government should request
the maximum penalty authorized by law in its complaint.  The
policy should also explain how it and any applicable precedents'
should be used in responding to any explicit requests from a
court for a minimum assesment which the Agency would deem
appropriate.
Use of the Policy as a Feedback Device	

     Each program-specific policy should  first explain  in detail
what information needs to be put into the  case file and  into  the
relevant computer tracking system.   Furthermore, each policy
should cover how to use  that system  to  examine penalty  assessments
in other cases.   This would thereby assist  the Agency  in making
judgments about the size of adjustments to the penalty  for  the
case at hand.  Each policy should also  explain how to present
penalty calculations in  litigation reports.
                                    Courtney  M.  Price
                               Assistant  Administrator  for
                          Enforcement  and Compliance Monitoring
Attachment

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                              -6-

                            APPENDIX
Introduction
     This appendix contains three sections.  The first two sections
set out guidelines for achieving the goals of the Policy on Civil
Penalties.   The first section focuses on achieving deterrence by
assuring that the penalty first removes -syr\y economic benefit from
noncompliance.   Then it adds an amount to  the penalty which reflects
the seriousness of the violation.  The second section provides
adjustment factors so that both a fair and equitable penalty will
result and that there will be a swift resolution of the environmental
problem.  The third section of the framework presents some practical
advice on the use of the penalty figures generated by the policy.


The Preliminary Deterrence Amount .

     The Policy on Civil Penalties establishes deterrence as an
important goal of penalty assessment.  More specifically, it speci-
fies that any penalty should, at a minimum, remove any significant
benefits resulting from noncompliance.   In addition,  it should
include an amount beyond removal of  economic benefit  to reflect
the seriousness of the violation.  That  portion  of the penalty
which  removes the economic benefit of noncompliance is referred  to
as  the  "benefit component;"  that part of  the penalty  which  reflects
the seriousness of the violation is  referred to  as the "gravity
component."  When combined,  these two components yield the  "prelim-
inary  deterrence  amount."

     This section of  the document .provides guidelines for calcu-
lating  the benefit component  and the gravity component.   It will
also present and  discuss a simplified version of the  economic
benefit  calculation  for use  in  developing  quick  penalty deter-
minations.  This  section will also discuss the  limited circum-
stances  which  justify settling  for less  than the benefit  component.
The uses of  the preliminary  deterrence  amount will be explained
in subsequent  portions of  this  document.


I.   The Benefit  Component

      In order  to  ensure  that penalties  remove any  significant
economic  benefit  of  noncompliance,  it  is necessary  to have
reliable methods  to  calculate that  benefit.  The existence  of
reliable methods  also strengthens  the  Agency's  position  in  both
 litigation  and  negotiation.   This  section sets  out guidelines  for
computing  the  benefit component.   It first addresses  costs  which
 are delayed  by  noncompliance.   Then  it  addresses costs  which  are
avoided completely  by noncompliance.  It also  identifies  issues

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                              -7-

to be considered when computing the benefit component for those
violations where the benefit of noncompliance results from factors
other than cost savings.  This section concludes with a discussion
of the proper use of the benefit component in developing penalty
figures and in settlement negotiations.
     A.  Benefit
    from
delaved costs
     In many instances, the economic advantage to be derived from
noncompliance is the ability to delay making the expenditures
necessary to achieve compliance.  For example, a facility which
fails to construct required settling ponds will eventually have  to
spend the money needed to build those ponds  in order to achieve
compliance.  But, by deferring these one-time nonrecurring costs
until EPA or a State takes an enforcement action, that facility
has achieved an economic benefit.  Among  the types of violations
which result in savings from deferred cost are the following:

          0  Failure to install equipment needed to meet
             discharge or emission control standards.

           0  Failure to effect process  changes needed
             to eliminate pollutants from products or
             waste streams.
             Testing  violations,  where  the  testing  still
             must  be  done  to  demonstrate  achieved  com-
             pliance .

             Improper disposal,  where proper  disposal  is
             still required  to  achieve  compliance.

             Improper storage where  proper  storage  is  still
             required to achieve compliance.
                      to obtain necessary permits  for dis-
                                 permits would probably  be
                                 .e avoided cost for  many
                                negligible,  there  are pro-
                                  permit process can be
Failure
charge, where such _.
granted.  (While the avoided
j — _
programs would be
grams where the the
expensive).
      The Agency has a substantial amount o
 the air and water programs in calculating
 that results from delaying costs necessary
 This experience indicates that it is possible
 benefit of delayed compliance through the use
 Specifically,  the economic benefit of delayed
 estimated at:   5% per year of the delayed one-time capital cost
 for the period from the date the violation began until the date
                             f experience under
                             the economic benefit
                              to achieve compliance.
                                 to estimate the
                                 of a simple formula
                                 compliance may be

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compliance was or is expected to be achieved.  This will be
referred to as the "rule of thumb for delayed compliance" method.
Each program may adopt its own "rule of thumb" if appropriate.
The applicable medium-specifric guidance should state what that
method is.

     The rule of thumb method can usually be used in making
decisions on whether to develop a case or in setting a penalty
target for settlement negotiations.  Infusing this rule of thumb
method in settlement negotiations,  the Agency may want to make
the violator fully aware that it is using an estimate and not
a more precise penalty determination procedure.  The decision
whether to reveal this information  is up to  the negotiators.

     The  "rule of thumb" method only provides a first-cut estimate
of the benefit of delayed compliance.  For this reason,  its use
is probably inappropriate in situations where a detailed analysis
of the 'economic effect of noncompliance is needed to support  or
defend the Agency's position.  Accordingly,  this  "rule of thumb"
method generally should not be used  in'any of the following cir-
cumstances:

           0  A hearing is likely on  the amount of the
             penalty.

           0  The defendant wishes  to negotiate over  the
             amount of the economic  benefit  on the basis
             of  factors unique to  the  financial condition
             of  the company.

           0  The case development  team has reason to
             bel.ieve  it will produce a substantially
              inaccurate estimate;  for  example, where  the
             defendant  is  in a highly  unusual  financial
             position, or where  noncompliance  has or  will
              continue  for  an unusually  long  period.

      There  usually  are avoided costs associated with  this  type
 of  situation.   Therefore,  the  "rule of  thumb for  avoided  costs"
 should  also be  applied.   (See  pages 9-10).   For most  cases,  both
 figures  are needed  to  yield  the  major  portion  of  the  economic
 benefit  component.

      When the  rule  of  thumb  method is  not  applicable,  the  economic
 benefit  of delayed  compliance  should be  computed  using  the  Meth —
 odology  for Computing  the  Economic Benefit of  Noncompliance.
 This  document,  which  is  under  development, provides  a method
 for computing  the  economic  benefit of  noncompliance  based  on  a
 detailed economic  analysis.   The method  will largely be  a  refined
 version of the  method  used  in  the  previous Civil  Penalty Policy
 issued  July 8,  1980,  for  the  Clean Water Act and  Title  I of  the
 Clean Air Act.   It  will  also be  consistent with  the  regulations

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                              -9-

implementing Section 120 of the Clean Air Act.  A computer
program will be available to the Regions to perform the analysis,
together with instructions for its use.  Until the Methodology
is issued, the economic model contained in the July 8, 1980,
Civil Penalty Policy should be used.  It should be noted that
the Agency recently modified this guidance to reflect changes in
the tax law.

     B.   Benefit from avoided costs      . \f-

     Many kinds of violations enable a violator to permanently
avoid certain costs associated with compliance.

          0  Cost savings for operation and maintenance of
             equipment that the violator failed to install.

          0  Failure to properly operate and  maintain
             existing control equipment.

          0  Failure to employ sufficient number  of
             adequately trained staff;

          0  Failure to establish  or follow precautionary
             methods required by regulations  or permits.

          0  Improper storage, where commercial storage  is
             reasonably available.

          0   Improper disposal, where  redisposal  or  cleanup
              is  not  possible.

           0   Process, operational,  or  maintenance savings
              from removing  pollution equipment.

           0   Failure  to  conduct  necessary  testing.

      As with the  benefit  from delayed  costs,  the  benefit  com-
 ponent for  avoided  costs  may  be  estimated  by  another "rule  of
 thumb" method.   Since  these costs  will never  be  incurred,  the
 estimate is the  expenses  avoided  until the  date  compliance  is
 achieved less  any tax  savings.   The use  of  this  "rule of  thumb"
 method is subject to the  same limitations  as  those discussed in
 the preceding  section.

      Where  the "rule of  thumb for  avoided  costs"  method cannot
 be used, the benefit from avoided  costs  must  be  computed using
 the Methodology for Computing the  Economic  Benefit of Ncncom-
 pliance.  Again,  until  the Metnolology is  issued, the method
 contained in the July 8,  1980,  Civil Penalty  Policy should  be
 used as modified to reflect recent changes  in the tax law.

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                             -10-

     C.    Benefit from competitive advantage

     For most violations, removing the savings which accrue
from noncompliance will usually be sufficient to remove the
competitive advantage the violator clearly has gained from
noncompliance.  But there are some situations in which noncom-
pliance allows the violator to provide goods or services which
are not available elsewhere or are more attractive to the
consumer.  Examples of such violations irrelude:

          0  Selling banned products,

          0  Selling products for banned uses.

          0  Selling products without  required labelling
             or warnings.

          0  Removing or altering pollution  control
             equipment for a fee, (e.g., tampering with
             automobile  emission  controls.)

          0  Selling products without  required regula-
              tory clearance,  (e.g.,  pesticide  registra-
              tion or premanufacture  notice under TSCA.)

     To  adequately  remove  the economic incentive for  such  viola-
tions,  it  is  helpful  to  estimate  the net profits made  from the
improper transactions  (i.e.  those transactions which  would not
have occurred  if  the party had  complied).  The case  development
team is  responsible  for  identifying  violations in  which  this
element  of economic  benefit  clearly  is present and significant.
This calculation' may  be  substantially  different  depending  on  the
type of  violation.   Consequently  the program-specific  policies
should  contain guidance  on  identifying these types of  violations
and  estimating these  profits.   In formulating  that guidance,  the
following  principles  should  be  followed:

           0   The amount  of  the  profit  should be  based on
              the best  information available  concerning
              the number  of  transactions  resulting  from
              noncompliance.

           0   Where  available,  information  about  the
              average profit  per transaction  may  be used.
              In  some cases,  this may be available  from
              the rulemaking  record  of  the  provision
              violated.

           0   The benefit derived should be adjusted  to
              reflect the present value of  net profits
              derived in  the  past.

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                              -li-

     lt is recognized that the methods developed for estimating  ,
the profit from those transactions will sometimes rely substan-
tially on expertise rather than verifiable data.  Nevertheless,
the programs should make all reasonable efforts to ensure that
the estimates developed are def-ensible.  The programs are encour-
aged to work with the Office of Policy, Planning and Evaluation
to ensure that the methods developed are consistent with the
forthcoming Methodology for Computing the Economic Benefit of
Noncompliance and with methods developed by other programs.  The
programs should also ensure that sufficient, contract funds are
available to obtain expert advice in this area as needed to
support penalty development, negotiation and trial of these kinds
of cases.

     D.   Settling cases for an amount less than the economic  .
          benefit

     As noted above, settling for an amount which does not remove
the economic benefit of noncompliance can encourage people to
wait until EPA or the State begins an enforcement action before
complying.   For this reason,  it is general Agency policy not to
settle  for less than this  amount.  There are three general areas
where  settling for less than  economic benefit may be appropriate.
But in  any individual case where  the Agency decides to settle  for
less than enconomic  benefit,  the  case development team must detail
those  reasons  in  the case  file and in any memoranda accompanying
the settlement.

           1. Benefit component involves  insignificant amount

      It is clear  that assessing the  benefit component and
negotiating  over  it  will  often represent  a  substantial commitment
of  resources.  Such  a commitment  of  resources  may not be'warranted
in  cases  where the magnitude  of the''benefit component  is  not  likely
to  be  significant,  (e.g.  not  likely  to  have a  substantial  impact on
the violator's competitive positions).   For this  reason,  the  case
development  team  has the  discretion  not  to  seek  the  benefit  com-
ponent where it  appears  that  the  amount  of  that  component  is
likely to be less than  $10,000.   (A  program may  determine  that
other  cut-off  points are  more reasonable  based  on  the  likelihood
that  retaining the  benefit could  encourage  noncomplying  behavior.)
 In exercising  that  discretion,  the  case  development  team should
consider the following  factors:

         0  Impact on violator:  The  likelihood that
            assessing the  benefit  component  as  part
            of  the penalty will have  a noticeable
            effect on the  violator's  competitive
            position or  overall profits.   If no such
            effect appears likely, the benefit  com-
            ponent should probably not be pursued.

         °  The size of  the gravity component:   If  the
            gravit • component is  relatively  small,  it
            .Tiay     provide a sufficient deterrent,  by

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                              -12-

            itself,  to achieve the goals o£ this policy.

         °   The certainty o£ the size of the benefit
            component:   If the economic benefit is quite
            well defined, it is. not likely to require
            as much  effort to seek to include it in the
            penalty  assessment.  Such circumstances also
            increase the likelihood that the economic
            benefit  was a substantial motivation for the
            noncompliance.  This would make the inclusion
            of the benefit component more "'necessary to
            achieve  specific deterrence.

     It may be appropriate not to seek the benefit component in
an entire class of violation.  In that situation, the rationale
behind that approach should be clearly stated in the appropriate
medium-specific policy.  For example, the most appropriate way
to handle a small non-recurring operation and maintenance vio-
lation may be  a small penalty.  Obviously it makes little sense
to assess in detail the economic benefit for each individual
violation because the benefit  is likely to be so small.  The
medium-specific policy would state this as the.rationale.

         2. Compelling public  concerns

     The Agency recognizes  that there may be some instances where
there are compelling public concerns  that would not be  served by
taking a case  to  trial.   In such  instances,  it may become necessary
to consider settling a case for less  than the benefit component.
This may be done  only  if  it is  absolutely necessary  to  preserve
the countervailing  public  interests.   Such settlements  might be
appropriate where the  following circumstances occur:

         0  There is a very substantial  risk of creating
            precedent  which will  have  a  significant
            adverse  effect  upon the  Agency's ability
            to enforce the  law or  clean  up pollution
            if the  case  is  taken  to  trial.

         0  Settlement will avoid  or terminate  an
            imminent  risk  to  human  health  or the
            environment.   This is  art adequate
            justification  only if  injunctive relief
            is unavailable  for some  reason,  and  if
            settlement on remedial  responsibilities
            could not  be reached  independent of  any
            settlement of  civil penalty liability.

          0  Removal of the economic  benefit  would
             result  in  plant closings,  bankruptcy,  or
            other extreme financial  burden,  and there
             is an important public interest  in  allow-
             ing the firm to continue in business.

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                              -13-

              Alternative payment plans should be fully
              explored before resorting to this option.
              Otherwise,  the Agency will give the per-
              ception that shirking one's environmental
              responsibilities -is a way to keep a- failing
              enterprise  afloat.  This exemption does not
              apply to situations where the plant was
              likely to close anyway, or where there is a
              likelihood  of continued harmful noncompliance.

          3.  Litigation  practicalities

     The Agency realizes  that in certain cases, it is highly unlikely
the EPA will be able to recover the economic benefit in litigation.
This may be due to applicable precedent, competing public interest
considerations, or the specific facts, equities, or evidentiary
issues pertaining to a particular case.  In such a situation it is
unrealistic to expect EPA to obtain a penalty in litigation which
would remove 'the economic benefit.  The case development team then
may pursue  a lower penalty amount.


II.  The Gravity Component

     As noted above, the Policy on Civil Pena_lties_ specifies that
a penalty,  to achieve deterrence,  should not only remove any eco-
nomic benefit of noncompliance, but  also include an  amount reflecting
the seriousness of the violation.  This  latter  amount  is referred
to as the  "gravity component."  The  purpose of  this  section of  the
document is to establish an  approach  to  quantifying  the gravity
component.   This approach can encompass  the differences between
programs and still provide  the  basis  for a sound consistent treat-
ment of this issue.

     A.    Quantifying  the gravity  of  a  violation

     Assigning a dollar  figure  to  represent  the gravity of a vio-
lation  is  an essentially  subjective  process.   Nevertheless, the
relative seriousness of  different  violations  can be  fairly
accurately determined  in  most  cases.   This can  be accomplished
by  reference to  the  goals  of the  specific  regulatory scheme and
the  facts  of each  particular violation.  Thus,  linking the dollar
amount  of  the  gravity  component to these objective  factors  is  a
useful  way of  insuring that violations  of  approximately  equal
seriousness are  treated  the same  way.

      Such  a linkage  promotes consistency.  This consistency
strengthens the  Agency's  position both in  negotiation  and  before
a  trier of fact.   This approach consequently  also encourages
swift  resolution of  environmental problems.

      Each  program must develop a system for  quantifying  the
gravity of violations of the laws and regulations  it administers.

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                             -14-

This development must occur within the context of the penalty
amounts authorized by law for that program.  That system must
be based, whenever possible, on objective  indicators of the
seriousness of the violation. -Examples of such  indicators are
given below.  The seriousness of the violation should be based
primarily on:  1) the risk of harm inherent in the violation at
the time it was committed and 2) the actual harm that resulted
from the violation.  In some cases, the seriousness of the
risk of harm will exceed that of the actual harm.  Thus, each
system should provide enough flexibility  to allow EPA to consider
both factors in assessing penalties.

     Each system must also be designed to  minimize the possi-
bility that  two persons applying the system to the same set of.
facts would  come up with substantially different numbers.  Thus,
to  the extent the system depends on categorizing events, those
categories must be clearly defined.  That  way  there is little
possibility  for argument over the  category in  which a violation
belongs.  In addition,  the categorization  of  the events relevant
to  the penalty decision should  be  noted  in the penalty develop-
ment portion of the case file.

     B.   Gravity Factors

     In  quantifying the gravity of  a violation,  a program-specific
policy should rank different  types  of  violations according  to  the
seriousness  of the act.  The  following  is  a suggested approach  to
ranking  the  seriousness of  violations.   In this  approach  to  rank-
ing, the  following factors  should  be considered:

           °  Actual or  possible harm:  This  factor
              focu-ses  on whether (and  to  what  extent)
              the  activity  of  the  defendant actually
              resulted  or was  likely  to result in an
              unpermitted discharge or  exposure.

           °   Importance  to the  regulatory scheme;  This
              factor  focuses  on  the importance of the
              requirement  to achieving  the goal of  the
              statute  or regulation.   For example,  if
              labelling is  the only method used to  pre-
              vent dangerous  exposure  to a chemical,
              then failure  to label should result in  a
              relatively high penalty.   By contrast,  a
              warning  sign  that  was visibly posted  but
              was smaller  than the required size  would
              not normally  be considered as serious.

           0  Availability  of data from other  sources:
              The violation of any recordkeeping  or
              reporting requirement is  a very serious

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                               -15-

            matter.   But  if  the  involved  requirement
             is  the  only  source of  information,  the
            violation is  far more  serious.   By  contrast,
             if  the  Agency has-another readily available
             and cheap source for the  necessary  infor-
            mation,  a smaller penalty may be appro-
             priate.   (E.g.  a customer of  the violator
             purchased all the violator's  illegally
             produced substance.   Even though the
             violator does not have the re'quired
             records, the  customer  does.)

          0   Size of violator;  In  some cases , the
             gravity component should  be increased
             where it is  clear that the resultant
             penalty will  otherwise have little
             impact  on the violator in light of the
             risk of harm posed by  the violation.
             This factor  is only relevant  to the
             extent  it is  not taken into account by
             other factors.

     The assessment  of the first gravity factor listed  above,
risk or harm arising from a violation, is  a complex  matter.  For
purposes of ranking  violations according to seriousness,  it is
possible to distinguish violations within  a category on the basis
of certain considerations, including the following:

          °  Amount  of pollutant: Adjustments for the
             concentration of  the pollutant may be
             appropriate, depending on the regulatory
             scheme  and the characteristics of the
             pollutant.  Such  adjustments need not be
             linear,  especially  if the pollutant can
             be  harmful at low concentrations.

          0  Toxicity of the  pollutant:  Violations
             involving highly  toxic pollutants are more
             serious  and should  result  in relatively
             larger  penalties.

          °  Sensitivity of  the  environment;  This
             factor  focuses  on the location where the
             violation was committed.   For example,
             improper discharge  into  waters near a
             drinking water  intake or  a recreational
             beach  is usually  more serious than dis-
             charge  into  waters  not near  any  such use.

          °  The length of time  a  violation continues:
             In most  circumstances, the longer  a
             violation continues uncorrected, the
             grerter is the  risk of harm.

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                             -16-

     Although each program-specific policy should address each
of the factors listed above, or determine why it is not relevant,
the factors listed above are not meant to be exhaustive.  The
programs should make every effort to identify all factors rele-
vant to assessing the seriousness of any violation. .The programs
should then systematically prescribe a dollar amount to yield a
gravity component for the penalty.  'The program-specific policies
may prescribe a dollar range for a  certain category of violation
rather than a precise dollar amount wit'ni_a.. that range based on
the specific facts of an individual case.

     The process by which the gravity component was computed must
be memorialized in the case file.   Combining the benefit component
with the gravity component yields the preliminary deterrence amount

     In some classes of cases,  the  normal gravity calculation may
be  insufficient to effect general deterrence.  This could happen
if  there was extensive noncompliance with certain regulatory
programs in specific areas of the United States.  This would
demonstrate that the normal penalty assessments had not been
achieving  general deterrence.   The  medium specific policies should
address this  issue.  One possible approach would be to  direct  the
case development team to consider increasing the gravity component
within a certain range to achieve general deterrence.  These extra
assessments should be consistent with the other goals of this
policy.
 Initial  and  Adjusted  Penalty  Target  Figure
      The  second  goal  of  the  Policy  on  Civil  Penalties  is  the
 equitable treatment  of  the  regulated  community.   One  important
 mechanism for  promoting  equitable  treatment  is  to include  the
 benefit  component  discussed  above  in  a civil penalty  assessment.
 This  approach  would  prevent  violators  from benefitting  economi-
 cally from their noncompliance relative to parties which  have
 complied  with  environmental  requirements.

      In  addition,  in order  to promote  equity, the system  for
 penalty  assessment must  have enough^flexibility to account for
 the unique facts of  each case.  Yet it still must produce  enough
 consistent results to treat  similarly-situated  violators  similarly.
 This  is  accomplished by  identifying many of  the legitimate differ-
 ences between  cases  and  providing  guidelines for how  to adjust
 the preliminary  deterrence  amount  when those facts occur.   The
 application of these adjustments to the preliminary det'errence
 amount prior to  the  commencement of negotiation yields  the initial
 penalty  target figure.   During the course of negotiation,  the  case
 development team may further adjust this figure to yield  the
 adjusted penalty target figure.

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                              -17-

     Nevertheless,  it should be noted that equitable  treatment  is
a two-edged sword.   While it means that a particular  violator will
receive no higher penalty than a similarly situated violator,  it
also means that the penalty wij.1 be no lower.


I.  Flexibility-Adjustment Factors

     The purpose of this section of the document  is to  establish
additional adjustment factors to promote "flexibility  and  to  iden-
tify management techniques that will promote  consistency.  This
section sets out guidelines for adjusting penalties to  account  for
some factors that frequently distinguish different cases.  Those
factors are: degree of willfulness and/or negligence, degree of
cooperation/noncooperation, history of noncompliance, ability  to
pay, and other unique factors.  Unless otherwise  specified,  these
adjustment factors will  apply only to  the gravity component  and
not to  the economic benefit component.  Violators bear  the burden
of  justifying mitigation adjustments they propose based on these
factors.

     Within each factor  there are  three suggested ranges  of
adjustment.  The actual  ranges  for each medium-specific policy
will be determined by those developing  the policy.  The actual
ranges may differ from these suggested  ranges based upon program
specific needs.  The  first, typically  a 0-20% adjustment of  the
gravity component, is within the  absolute discretion  of the  case
development team. £/  The  second,  typically  a 21-30%  adjustment,
 is  only appropriate  in unusual  circumstances.  The third range,
 typically  beyond 30%  adjustment,  is only  appropriate  in extra-
 ordinary circumstances.  Adjustments  in  the  latter two  ranges,
 unusual and extraordinary  circumstances,  will be  subject to  scrutiny
 in  any  performance audit.  The  case- development tsam  may wish to
 reevaluate these adjustment  factors as  the  negotiations progress.
 This allows  the  team  to  reconsider evidence  usjed  as a basis  for
 the penalty  in  light  of  new  information.

     Where the  Region develops  the penalty  figure,  the  appli-
 cation  of  adjustment  factors will  be  part  of the  planned Regional
 audits.  Headquarters will be  responsible  for proper  application
 of  these  factors  in  nationally-managed cases.  A  detailed dis-
 cussion of these  factors follows.

     A.   Degree  of Willfulness  and/or  Negligence

     Although  most  of the  statutes which  EPA administers are
 strict liability  statutes,  this does  not  render the  violator's
 !_/ Absolute discretion means that the case development team
 may make penalty development decisions independent of EPA
 Headquarters.   Nevertheless it is understood that in all
 judicial matters, the Department of Justice can still review
 these determinat >ns if they so desire.  Of course the authority
 to exercise th- . /.-.cy's concurrence in final settlements is
 covered hv (-.h;> n:i.-\" '•  -.--il-jlpi r. ^- ' .-.,1 A »• i one

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                              -18-

willfulness and/or negligence irrelevant.  Knowing or willful
violations can give rise to criminal liability, and the lack
of any culpability may, depending upon  the particular program,
indicate that no penalty action  is appropriate.  Between  these
two extremes, the willfulness and/or negligence of the violator
should be reflected in the amount of the penalty.

     In assessing the degree of  willfulness  and/or negligence,
all of the following points should be considered in most  cases:

          0  How much control the violator had over the
             events constituting the violation.

          0  The forseeability  of the events consti-
             tuting the violation.

          0  Whether the violator took  reasonable
             precautions against the events  con-
             stituting  the violation.

          0  Whether the violator knew  or  should have
             known of  the  hazards associated with  the
             conduct.

          0  The level  of  sophistication within  the
             industry  in dealing with  compliance  issues
             and/or the accessibility  of appropriate
             control technology (if  this  information  is
             readily available). This  should be balanced
             against  the  technology  forcing  nature  of  the
             statute,  where  applicable.

           0  Whether  the  violator in fact  knew of  the
              legal  requirement  which was  violated.

      It  should  be  noted that  this last point, lack  of  knowledge
 of the legal requirement,  should never be  used as  a basis to
 reduce the  penalty.  To do so would  encourage ignorance  of
 the law.   Rather,  knowledge  of   the  law should serve only  to
 enhance  the penalty.

      The amount of  control which the violator had  over how
 quickly  the violation  was  remedied  is also relevent in certain
 circumstances.   Specifically,  if correction of the environmental
 problem was delayed by factors  which the violator  can clearly
 show were not  reasonably  foreseeable and out of its control, the
 penalty  may be  reduced.

      The suggested approach for this factor  is for the case
 development team to have  absolute discretion to adjust the
 penalty  up or  down by  20%  of the gravity component.  Adjustments
 in the +_ 21-30"' vange  should only be made in unusual circumstances

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                               -19-

Adjustments for this factor beyond +_ 30% should be made only in-
extraordinary circumstances.  Adjustments in the unusual or
extraordinary circumstance range will be subject to scrutiny in
any audit of performance.

     B.  Degree of Cooperation/Moncooperation

     The degree of cooperation or noncooperation of the violator
in remedying the violation is an appropriate factor to consider  in
adjusting the penalty.  Such adjustments..^re mandated by both  the
goals of equitable treatment and swift  resolution of environmental
problems.  There are three areas where  this  factor  is relevant.

          1.  Prompt reporting of noncompliance

     Cooperation can be manifested by the violator  promptly
reporting its noncompliance.  Assuming  such  self-reporting  is  not
required by law, such  behavior should result in the mitigation  of
any penalty.

     The suggested ranges of adjustment are  as  follows.  The case
development team has absolute discretion on  a'ny adjustments up  to
+_  10% of the gravity component for.cooperation/noncooperation.
Adjustments can be made  up  to +_ 20%  of  the  gravity  component,  but
only in  unusual circumstances.  In extraordinary circumstances,
such as  self reporting of a TSCA premanufacture notice violation,
the case development  team may adjust the penalty beyond  the +_  20%
factor.  Adjustments .in  the unusual  or  extraordinary circumstances
ranges will be  subject to scrutiny  in any performance  audit.

           2.  Prompt  correction of environmental problems

     The Agency should provide  incentives  for  the  violator  to
commit  to  correcting  the problem  promptly.   This correction must
 take place  before  litigation  is begun,  except  in extraordinary
circumstances.£/   But  since  these  incentives must  b.a consistent
with deterrence,  they  must  be  used' judiciously.
 2/  For the purposes of this document, litigation is deemed to
 begin:
           0 for administrative actions - when the
             respondent files a response to an adminis-
             trative complaint or when the time to
             file expires or

           0 for judicial actions - when an Assistant
             United States Attorney files a com-
             plaint in court.

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                                -20-

     The circumstances under which the penalty is reduced depend
on the type of violation involved and the source's response to
the problem.  A straightforward reduction in the amount of the
gravity component of the penalty is most appropriate in those
cases where either: 1) the environmental problem is actually cor-
rected prior to initiating litigation, or 2) ideally, immediately
upon discovery of the violation.  Under this approach, the reduction
typically should be a substantial portion of the unadjusted gravity
component.                               _;r

     In general, the earlier the violator instituted corrective
action after discovery of  the violation and the more complete
the corrective action instituted, the larger the penalty
reduction EPA will consider.  At the discretion of the case
development team,  the unadjusted gravity component may be
reduced up  to 50%.  This would  depend on how long the environ-
mental problem continued before correction  and the amount of any
environmental damage.  Adjustments greater  than 50% are permitted,
but will  be the subject of close scrutiny in auditing performance.

      It should be  noted that  in some -instances, the violator
will  take all necessary steps toward  correcting the problem but
may refuse  to reach any agreement on  penalties.  Similarly, a
violator  may  take  some steps  to ameliorate  the problem, but
choose  to litigate over what  constitutes compliance.  In  such
cases,  the  gravity component  of the  penalty may be reduced up
to 25%  at the discretion of  the case  development team.  This
smaller adjustment still recognizes  the  efforts made  to correct
the environmental  problem, but  the  benefit  to  the source  is not
as great  as if  a  complete  settlement  is  reached.  Adjustments
greater than  25%  are  permitted, but  will be the subject of close
scrutiny  in auditing  performance.

      In all instances,  the facts  and  rationale  justifying the
penalty reduction must  be  recorded  in the  case  file  and  in-
cluded  in any memoranda  accompanying  settlement.

           3.   Delaying  compliance

      Swift  resolution of  environmental  problems  will  be  encour-
 aged  if  the violator  clearly sees  that  it  will  be  financially
 disadvantageous for  the  violator  to litigate  without  remedying
 noncompliance.   The  settlement  terms described  in  the  preceding
 section are only available to parties who  take  steps  to  correct  a
 problem prior to initiation  of  litigation.   To  some  extent,  this
 is an incentive to comply  as soon  as possible.   Nevertheless,  once
 litigation  has  commenced,  it should be  clear  that  the  defendant
 litiaates at its own  risk.

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                              -21-

     In addition, the methods for computing the benefit component
and the gravity component are both structured so that the penalty
target increases the longer the violation remains uncorrected.
The larger penalty for longer noncompliance is systematically
linked to the benefits accruing to the violator and to the con-
tinuing risk to. human health and the environment.  This occurs
even after litigation has commenced.  This linkage will put the
Agency in a strong position to convince  fehre trier of fact to
impose such larger penalties.  For these reasons, the Policy
on Civil Penalties provides substantial  disincentives to litigat-
ing without complying.

     C.  History of noncompliance

     Where a party has violated a similar environmental require-
ment before, this is usually clear evidence that the party was
not deterred by  the Agency's previous enforcement response.
Unless the previous violation was caused by factors entirely  out
of the control of the violator, this  is  an indication that the
penalty should be adjusted upwards.

     In deciding how  large these adjustments  should be,  the case
development team should  consider the  following points:

           0  How similar the previous violation  was.

           0  How recent  the  previous  violation was.

           0  The number  of previous  violations.

           °  Violator's  response  to  previous  violation(s)
              in  regard  to correction  of  the previous
             problem.

      Detailed  criteria  for what  constitutes a "similar  violation"
 should be  contained  in  each  program-specific  policy.   Neverthe-
 less  a violation should  generally  be  considered  "similar"  if  the
 Agency's  previous  enforcement  response  should have  alerted  the
 party  to  a particular type  of  compl-iance problem.   Some  facts
 that  indicate  a  "similar violation"  was  committed  are  as  follows:

           0   The same permit was  violated.

           0   The same substance  was involved.

           0   The same process  points were  the source
              of  the  violation.

           0   The same statutory  or regulatory provision
              was violated.

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                             -22-

          0  A similar act or omission (e.g. the failure
             to properly store chemicals)  was the basis
             of the violation.

     For purposes of this section, a "prior violation" includes
any act or omission for which a formal enforcement response has
occurred (e.g. notice of violation, warning letter, complaint,
consent decree, consent agreement, or final order).  It also
includes any act or omission for which the violator has pre-
viously been given written notification, however informal, that
the Agency believes a violation exists. ''

     In the case of large corporations with many divisions or
wholly-owned subsidiaries, it is sometimes difficult to deter-
mine whether a previous instance of noncompliance should trigger
the adjustments described in this section.  New ownership often
raises similar problems.  In making this determination, the case
development team should ascertain who in the organization had .
control and oversight responsibility for the conduct resulting
in the violation.  In some situations the same persons or the
same organizational unit had or reasonably should have had
control or oversight responsibility for violative conduct.  In
those cases, the violation will be considered part of  the com-
pliance history of that regulated party.

     In general, the case development team should begin with
the assumption that  if  the same corporation was  involved, the
adjustments for history of noncompliance should  apply.  In
addition,  the  case development  team should be wary of  a party
changing operators or shifting  responsibility for compliance  to
different  groups as  a way of  avoiding increased  penalties.  The
Agency may find a  consistent  pattern-of noncompliance  by many
divisions  or  subsidiaries of  a  corporation  even  though  the
facilities are at  different geographic  locations.  This often
reflects,  at  best, a corporate-wide  indifference  to environmental
protection.   Consequently, the  adjustment  for history  of noncom-
pliance should probably apply  unless  the violator  can  demonstrate
that the other violating  corporate  facilities are  independent.

     The  following are  the Framework's  suggested  adjustment
ranges.   If  the  pattern is one  of  "dissimilar"  violations,
relatively few in  number, the case  development  team has absolute
discretion to  raise  the penalty amount  by  35%.   For a  relatively
large  number  of  dissimilar violations,  the  gravity component  can
be increased  up  to 70%.   If  the pattern is  one  of  "similar"
violations,  the  case development  team  has  absolute discretion  to
raise  the  penalty  amount  up  to  35%  for  the  first  repeat violation,
and  up to  70%  for  further repeated  similar  violations.  The case
development  team may make higher  adjustments  in  extraordinary
circumstances, -but such adjustments  will  be  subject to scrutiny
 in any performance audit.

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                             -23-

     D.  Ability to pay

     The Agency will generally not request penalties that are
clearly beyond the means of the violator.  Therefore EPA should
consider the ability to pay a penalty in arriving at a specific
final penalty assessment.  At the same time, it is important
that the regulated community not see the violation of environ-
mental requirements as a way of aiding a financially troubled
business.  EPA reserves the option, in appropriate circumstances,
of seeking a penalty that might put a company out of business.

     For example,  it is unlikely that EPA would reduce a penalty
where a facility refuses to correct a serious violation.  The same
could be said for  a violator with a long history of previous vio-
lations.  That long history would demonstrate that less severe
measures are  ineffective.

     The financial ability adjustment will  normally require a
significant amount of  financial  information specific to the
violator.  If this  information  is available prior to commence-
ment of negotiations,  it should  be assessed as part of the
initial penalty  target  figure.   If it. is not available, the
case development team  should assess this factor after commence-
ment of negotiation with the source.

     The burden  to demonstrate  inability to pay,  as with the
burden  of demonstrating  the presence  of  any mitigating circum-
stances, rests on  the  defendant.  If  the violator fails to
provide sufficient information,  then  the case development  team
should  disregard this  factor  in  adjusting  the penalty.  The
National Enforcement  Investigations Center  (NEIC) has developed
the  capability  to  assist the Regions  in  determining a firm's
ability to  pay.   Further  information  on  this system will be made
available shortly  under separate cover.

     When  it  is  determined  that  a  violator  cannot afford the
penalty prescribed by  this  policy,  the  following  options should
be considered:

           0   Consider  a delayed  payment  schedule:   Such  a
              schedule  might  even be  contingent  upon  an
              increase  in sales or some  other  indicator  of
              improved  business.   This approach  is a  real
              burden on the Agency and should  only be
              considered on rare occasions.
                               i
           °   Consider non-monetary alternatives,  such  as
              public service  activities;   For  example,  in
              the mobile source program,  fleet  operators
              who tampered  with pollution control  devices

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                             -24-

             on  their  vehicles  agreed  to  display  anti-
             tamper ing ads  on their  vehicles.   Similar
             solutions may  be possible in other industries.

          °   Consider  straight  -penalty reductions' as  a  last
             recourse;  If  this approach  is necessary,  the
             reasons  for the  case  development  team's
             conclusion as  to the  size of the  necessary
             reduction should be made  a part of the formal
             enforcement file and  the  memorandum  accompany-
             ing the  settlement. V

          °   Consider  joinder of the violator's individual
             owners;   This  is appropriate if joinder is
             legally possible and  justified under the
             circumstances.

Regardless of the Agency's  determination of an appropriate
penalty amount to pursue based on  ability to pay considerations,
the violator is still expected to  comply with  the law.

     E.  Other unique factors

     Individual programs may be able  to predict other factors
that can be expected  to affect the appropriate penalty amount.
Those factors should  be identified and guidelines for their use
set out in the program-specific policies.  Nevertheless, each
policy should allow for adjustment for unanticipated factors
which might affect the penalty  in each case.

     It is suggested  that there be absolute discretion to adjust
penalties up or down  by 10%  of  the gravity component for such
reasons.  Adjustments beyond the absolute discretion range will
be subject to scrutiny during  audits.  In addition,  they will
primarily be allowed  for compelling public policy concerns or the
strengths and equities of the  case.   The rationale for the reduction
must be expressed  in  writing in the case file  and  in any memoranda
accompanying the settlement.   See the  discussion on  pages 12 and
13 for further  specifics on  adjustments  appropriate  on the basis
of either compelling  public  policy concerns or the strengths and
eauities of  the case.
 II.   Alternative Payments

      In  the  past,  the  Agency  has  accepted  various environmentally
 beneficial expenditures  in  settlement of a case  and chosen not  to
_3/  If  a  firm fails  to pay  the  agreed-to  penalty  in  an  adminis-
trative  or  judicial  final  order,  then  the  Agency must  follow
the Federal Claims  Collection  Act procedures  for obtaining  the
penalty  amount.

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                             -25-

pursue more severe penalties.  In general, the regulated community
has been very receptive to this practice.  In many cases,
violators have found "alternative payments" to be more attrac-
tive than a traditional penalty.  Many useful projects have been
accomplished with such funds.  But in some instances, EPA has
accepted for credit certain expenditures whose actual environ-
mental benefit has been somewhat speculative.

     The Agency believes that  these alternative payment projects
should be reserved as an incentive to settlement before litigation,
For-this reason,  such arrangements will  be allowed only in preliti-
gation agreements except in extraordinary circumstances.

     In  addition, the acceptance of alternative payments for
environmentally beneficial expenditures  is subject to certain
conditions.  The  Agency has designed  these conditions to prevent
the abuse of this procedure.   Most of the conditions below applied
in  the past, but  some are  new.  All of these  conditions must be
met before  alternative payments may be accepted :_V

           0  No credits can  be given  for activities
             that currently  are or will  be required
             under  current law or are likely  to be re-
             quired  under  existing statutory  authority
             in the  forseeable future (e.g.,  through
             upcoming  rulemaking).

           0  The  majority  of  the project's environmental
             benefit should  accrue to the general  public
             rather than  to  the source or any particular
             governmental  unit.

           °  The  project  cannot be something  which the
             violator  could  reasonably be expected to do
              as  part of  sound business practices.
 _4_/ In extraordinary circumstances, the Agency may choose not to
 pursue higher penalties for "alternative" work done prior to
 commencement of negotiations.   For example, a firm may recall a
 product found to be in violation despite the fact that such
 recall is not required.  In order for EPA to forgo seeking
 higher penalties, the violator must prove that it has met the
 other conditions herein stated.  If the violator fails to prove
 this in a satisfactory manner, the case development team has the
 discretion to completely disallow the credit project.  As with
 all alternative projects, the case development team has the dis-
 cretion to still pursue some penalties in settlement.

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                             •26-
          0   EPA must not lower the amount it decides
             to accept in penalties by more than the
             after-tax amount the violator spends on
             the project.£/

     In all  cases where alternative payments are allowed, the
case file should contain documentation showing that each of
the conditions listed above have been met in that particular
case.  In addition when considering penalty credits, Agency
negotiators  should take  into account the following points:

          0   The project should not require a large
             amount of EPA oversight for its comple-
             tion.  In general the less oversight
             the proposed credit project would
             require  from EPA to ensure proper
             completion, the more  receptive EPA
             can be toward accepting the project
             in settlement.

          0  The project should receive stronger
             consideration if it will result in  the
             abatement of existing pollution,
             ameliorate  the pollution problem that
             is  the basis of  the government's claim
             and  involve an activity  that could  be
             ordered  by  a judge as equitable relief.

          0  The  project should receive stronger
             consideration if undertaken  at  the
             facility where  the violation  took  place.

          0  The  company should agree that  any  publicity
              it  disseminates  regarding  its  funding  of
             the  project must  include a statement  that
             such  funding  is  in  settlement  of a  lawsuit
             brought  by  EPA  or  the State.
 _5/ This limitation does not apply to public awareness activities
 such as those employed for fuel switching and tampering violations
 under the Clean Air Act.   The purpose of the limitation is to
 preserve the deterrent value of the settlement.   But these viola-
 tions are often the result of public misconceptions about the
 economic value of these violations.  Consequently,  the public
 awareness activities can be effective in preventing others from
 violating the law.  Thus, the high general deterrent value of
 public awareness activities in these circumstances  obviates the
 need for the one-to-one requirement on penalty credits.

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                             -27-

     Each alternative payment plan must entail an identified
project to be completely performed by the defendant.  Under the
plan, EPA must not hold any funds which are to be spent at EPA's
discretion unless the relevant-statute specifically provides
that authority.  The final order, decree or judgment should
state what financial penalty the violator is actually paying and
describe as precisely as possible the credit project the violator
is expected to perform.

                                         -f
III. Promoting Consistency

     Treating similar situations in a similar fashion is central
to the credibility of EPA's enforcement effort and  to the success
of achieving the goal of equi'table treatment.  This document has
established several mechanisms  to promote such consistency.  Yet
it still leaves enough  flexibility for settlement and for tailor-
ing  the penalty to particular  circumstances.  Perhaps the most
important mechanisms for achieving consistency are  the systematic
methods for calculating the benefit component and gravity compo-
nent of the penalty.  Together,  they  add up  to the  preliminary
deterrence amount.  The document also sets out guidance on uniform
approaches for applying adjustment factors to arrive at an initial
penalty target prior to beginning settlement  negotiations or an
adjusted penalty  target after  negotiations have  begun.

     Nevertheless,  if  the  Agency  is  to promote consistency,  it
is essential that  each  case  file contain a complete description
of how each penalty was developed.  This description should  cover
how  the preliminary deterrence amount was calculated and  any
adjustments made  to  the preliminary  deterrence amount.  It should
also describe  the.  facts and  reasons  which support  such adjustments.
Only through  such  complete documentation can enforcement  attorneys,
program  staff  and  their managers  learn  from  each others'  experience
and  promote  the  fairness  required  by  the Policy  on  Civil  Penalties.

     To  facilitate the use of  this  information,  Office of  Legal
and  Enforcement  Policy will  pursue  integration of  penalty  infor-
mation  from  judicial  enforcement actions  into a  computer  system.
Both Headquarters and  all  Regional  offices will  have access  to
 the  system through terminals.   This~would make  it  possible  for
 the  Regions  to compare the handling  of  their cases  with  those  of
 other  Regions.   It could  potentially allow  the Regions,  as  well
 as Headquarters,  to learn from each  others'  experience  and  to
 identify problem areas where policy  change  or further  guidance
 is needed.

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                             -28-
Use of Penalty Figure in Settlement Discussions	

    The Policy and Framework do not seek to constrain negotiations,
Their goal is to set settlement" target figures for the internal
use of Agency negotiators.  Consequently, the penalty figures
under negotiation do not necessarily have to be as low as the
internal target figures.  Nevertheless, the final settlement
figures should go no lower than the internal target figures unless
either: 1) the medium-specific penalty policy so provides or
2) the reasons for the deviation are properly documented.

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           UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                         WASHINGTON. DC 204*0
                              NOV  2 I  I2S3
                                                     KNPOMCKMKMT COUMSKL.
MEMORANDUM

SUBJECT:

FROM:



TO:
Guidance Concerning Compliance with the Jencks Act
with

•  \^
Courtney M. PricJUo-
Assistant Administrator   ()
Office of Enforcement and Compliance Monitoring

Assistant Administrators
Regional Administrators
Regional Counsels
Associate Enforcement Counsels
Director, NEIC
Background

     The Jencks Act  (18 U.S.C. §3500) provides that  in a
federal criminal prosecution, after a witness called by the
United States has testified on direct examination, the court,
on motion of the defendant, shall order the United States to
produce any "statement", as defined in the Act, in the
possession of the United States that relates to the  subject
matter as to which the witness has testified.  Any witness
called by the United States is subject to the Jencks Act.
Therefore, the 'statements* of environmental engineers,
technicians, laboratory personnel, criminal investigators,
inspectors, and EPA  lawyers may be ordered turned over to
the defense if any of these individuals testifies for the
Government.  The need for a complete understanding of the
requirements of the  Jencks Act, by all EPA personnel, can-
not be underestimated.  The identity of government witnesses
cannot be accurately predicted in advance, and the sanctions
for losing, destroying or misplacing "Jencks Act material"
can be severe.
                                 t
     The Act (the text of which is set forth in Appendix A)
has- generated a considerable amount of case law.  Litigation
has mainly concerned questions as to what is a "statement"
and what sanctions should be imposed should the Government
fail to produce Jencks Act material.  This memorandum will
discuss these points and the procedures which must be used
to preserve the material.

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                             -2-
Issue

     What written materials will be considered "statements"
subject to production to the defense during the course of
criminal litigation?
       •                       *'
Discussion

      A "statement" is defined in part in 18 D.S.C. §3500(e)
as (D a written statement made by the witness and signed or
otherwise adopted or approved by him; or (2) a stenographic,
mechanical, electrical, or other recording, or a transcription
thereof, which is a substantially verbatim recital of an oral
statement made by the witness and recorded contemporaneously
with the making of such oral statement.

*(e)(l) Statements";  Under subsection (e)(l), a written
statement can be a report written by an agent and adopted by
the witness.  That is, if an agent writes up a report and
either reads it back to the witness or lets the witness read
it and then has the witness, in writing or orally, approve
what has been written, then the witness has "adopted" the
statement and it becomes the witness's statement.  This
statement or report does not have to be written at the time
of the interview of the witness.  If an agent talks to a wit-
ness, types up a report a few days later and shows the report
to the witness who approves it, it is an "(e)(l) statement"
of the witness.  A document written by a witness, whether
signed or unsigned, is also a statement and, if turned over
to an agent, must be, retained as Jencks Act material.

     Criminal investigators or agents intentionally obtaining
statements from potential witnesses are not the only EPA
personnel who may create "(e)(l) statements."  If an EPA
technician or inspector writes a report which a facility
manager reads and certifies as being accurate* then this
report may be considered the "statement" of the facility
manager.  The manager has "adopted" the report.  Also, the
notes or laboratory reports of a technician or inspector
are •(«)(!) statements" as to that technician or inspector.
If the technician or inspector testifies, then these notes
or reports must be turned ov-er to the defense if they relate
to the subject matter of the direct testimony.  It does not
matter who records the statement or for what purpose; it
remains Jencks Act material.  EPA technical personnel must
keep any notes that they have made of interviews with facil-
ity personnel (or other potential witnesses) as well as notes
recording actions which may later be the subject of a criminal
prosecution.

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                              -3-
 • (e) (-2)  Statements*:   Statements  which are  "(e)(2)  statements"
 include, not  only  tape  recordings,  but  any notes  which can be
 considered a "substantially verbatim recital"  of a  witness's
 oral  statement.   If  an agent takes notes quoting, or writing
 down  in  a substantially verbatim  form, the  words of a witness
 and these notes are  taken either  at or near the  time of the
 witness's oral statement, these notes  become the witness's
 *(e)(2)  statement*.  The agent taking  the notes  is  viewed in
 the manner of 8 stenographer who  accurately memorializes the
 witness's words*.   The  witness does not have to approve or
 adopt the agent's notes.  He does not  have  to even  know that
 notes were being  taken.  If the agent  has captured  the witness's
 words on paper, then these words  are the witness's  statement
 even  if  he is unaware  that he is  making a statement.

       Agents who  testify in court become witnesses  whose
 statements also must be turned over to the  defense.  Investi-
 gative reports, written interpretations or  impressions of a
 case, and written analyses of case problems and  issues may
 all  be "statements"  of an agent.   For  instance,  a report of
 a witness  interview  may not be a  witness's  "(e)(l)" or "(e)(2)"
 statement  because it does not directly quote the witness or
 capture  the  witness's  words in a  substantially verbatim form.
 However, it  may be the "(e)(l) statement" of the agent who
 wrote the  report.  "The written report of the agent, however,
 is just  as much a verbatim statement of the agent who prepares
 it as a  written statement of an informer, incorporated in
 the  report,  is  the statement of the informer."  Holmes v.
 United States,  271 F.2d 655, 658  (4th  Cir.  1959).

    •Running  resumes" of F.B.I, agents, detectives or EPA
•agents are  "(e)(l) statements" of the  agent and  may be
 producible.   If a Criminal Enforcement Division  Special Agent
 testifies,  it can be anticipated  that  his/her notes, reports
 to SAICs,  case  referral reports,  and investigative  reports
 will  be  producible if  the direct  testimony  covers areas
 which are  discussed  in these previously written  documents.
 United States v.  Sink, 586 F.2d  1041 (5th Cir. 1978), cert.
 denied,  443  U.S.  912 (1979); Holmes v. United States, supra.
 Although it  is  incumbent upon the txial judge to separate
 out  personal evaluations and "discussions of legal  and
 practical  problems of  a prosecution" from the "running  '
 resumes" (or from any  document which contains Jencks Act
 material),-the  writer  who includes extraneous material always
 runs  the risk of  a judge decidirig against excision.  United
 States v.  Pfinqst, 377 F.2d 177,  195 (2d Cir.),  cert, denied,
 412  U.S. 941 (1973).  Material in an agent's report which
 is sensitive or which  might affect the security  of  EPA's
 investigative techniques is not exempt .from Jencks  Act
 requirements. West  v. United States,  274 F.2d 885  (6th Cir.
 1960), cert, denied, 365 U.S. 819 (1961).

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                             -4-
    Notes, reports, etc., in the hands of any EPA employee—
including criminal investigators, lawyers and technical
persons—are considered "in the possession of the government."
Therefore, if an EPA employee fails to disclose Jencks Act
material to the prosecutor, that failure will be held against
the Government even though it is the agent rather than the
prosecutor who has failed to preserve something.  United
States v. Bryant, 439 F.2d 642 (D.C. Cir. 1971); Emmett v.
Ricketts, 397 F. Supp, 1025 (N.D. Ga. 1975); United States v.
Niederberger, 580 F.2d 63 (3d Cir. 1978); United States v.
Williams, 604 F.2d 1102 (Bth Cir. 1979).  As soon as a case
is opened by the Criminal Enforcement Division, the agent
assigned to the case should inventory all existing notes and
reports concerning potential government witnesses in the
possession of, or known to, all Agency personnel involved in
the case, and inform them of their obligation to retain such
material.  Copies of this Agency's guidance on the Jencks Act
should also be distributed to such personnel.

   Courts will require the Government to turn over any material
which fits the "statement" definition if it relates to the
subject matter of the witness's direct testimony.  Any material
which either is not a statement of the witness or does not
relate to the subject matter of the witness's direct testimony
will be excised from the document.  A judge may not exercise
his or her own judgment as to what material is important,
helpful or necessary for the defense.  If it is a statement
that relates to the direct testimony, it must be turned
over.

     Courts have broadly interpreted the phrase "relates to
the subject matter as to which the witness has testified," in
Section  (b) of the Act.  However, courts have more restric-
tively defined "statements" under Section (e).  Acknowledging
that it  is unfair to cross-examine a witness using material
which does not represent what the witness in fact said,
courts have excluded material that is really the agent's
words or  impressions rather than those of the witness.  In
Palermo v. United States, 360 U.S. 343 (1959), the Court
affirmed  the denial ofthe production of a 600-word memoran-
dum in which the Government agent summari-zed a three and a
half hour interrogation of a witness who testified at trial.
In one of the first Supreme Court decisions discussing the
•statement" definition of the Jencks Act, the Court attempted
to clarify what courts may exclude:

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                             -5-
       uminaries of an oral statement which evidence  substan-
    tial selection of material* or which were prepared  after
    the interview without the aid of complete notes,  and  hence
    rest on the memory of the agent, are not to  be produced.
    Neither, of course, are statements which contain the
    agent's interpretations or  impressions.
       •
360 U.S. at 353. . If a court describes an agent's notes as
"rough", "random* or "brief", it will be signaling its  finding
that the notes are not "statements" as to the witness referred
to in" the notes.

     To determine whether notes accurately reflect a witness's
•words, ^courts -will co?*fii
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Issue

     When must Jencks Act material be made available to the
defense and what are the sanctions if it is not made
available?

Discussion

     If a prosecutor decides to follow strictly the letter
of the law, he or she need not turn over Jencks Act material
until after the witness has testified at trial for the Govern-
ment.  However, because of the delay which this creates (while
the defense reviews the material)* most courts expect that a
prosecutor will agree to turn over Jencks Act material either
at the start of each day of. trial or before the witness testi-
fies on direct examination.  Some prosecutors even allow the
defense to examine the material before trial.

     As in any area of the law, different courts interpret
the Jencks Act differently.  Prosecutors who are aware of
previous rulings by a court on Jencks Act issues will conform
their practice accordingly.  Therefore, what one prosecutor
considers Jencks Act material, another may not.  EPA personnel
must accommodate themselves to the practice of the prosecutor
within their jurisdiction.

    The Congressional purpose of the Act is to allow the
defendant to have, for impeachment purposes, "relevant and
competent statements of a governmental witness in possession
of the Government touching the events or activities as to
which the witness has testified at trial.'  Campbell v. United
States, supra, 365 U.S. at 92. If the defense's ability to
cross-examine  is impeded by the deliberate or inadvertent
loss, by the Government, of Jencks Act material, the Court
may decide not to allow the witness to testify at all or to
strike the witness's entire testimony.  Of course, the effect
of completely excluding the testimony of a Government witness
may be significant.

    Although the Act does not require the automatic imposi-
tion of sanctions for failure to preserve potential Jencks
Act material, courts have warned law enforcement agencies of
their duty to promulgate procedures to ensure preservation.

     lS]anctions for non-disclosure based on loss of evidence
    will be invoked in the future unless the Government can
    show that  it has promulgated, enforced, and attempted in
    good faith to follow rigorous and systematic procedures
    designated to preserve all discoverable evidence gathered
    in the course of a criminal investigation.  The burden,
    of course, is on the Government to make this showing.
    Negligent failure to comply with the required procedures
    will provide no excuse.

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                             -7-
United States v. Bryant, 439 F.2d 642 (D.C. Cir. 1971)
(footnote omitted}(emphasis in original).

     Jn light of the sanctions that can flow from a failure
to preserve Jencks Act material, as well as Government's
inherent responsibility to preserve discoverable evidence, it
is incumbent upon EPA to develop procedures that will ensure
this end.

I-ssue

     What procedures should be implemented throughout the
Agency to preserve Jencks Act material?

Discussion

     As a general rule, after a matter is referred to the
Criminal Enforcement Division for investigation, investi-
gators from that Division will be responsible for reports
written to document factual developments in ongoing cases.
This would include, for example, interview write-ups, sur-
veillance reports, documentation of the receipt of physical
evidence, etc.  One clear exception to this general rule
will be Agency technical personnel who will continue to
draft reports documenting sampling data and analysis, chain
of custody information, etc.

     If more than one investigator is involved in an investi-
gation, only one report should be written documenting a
specific event unless circumstances mandate otherwise.

     All work notes should be retained by Agency personnel
working on the criminal investigation until the final disposi-
tion of the case.  This potential Jencks Act material must
be kept in secured files when not in immediate use.  Any
notes taken at the time of the event, or at the time of the
interview, as well as reports composed from the notes must be
retained.  Intermediate drafts need not be retained.

    Investigative reports and technical reports should not
include the writer's subjective thoughts, impressions or
general opinions concerning a case. If it is thought necessary
to reduce to writing information that is not strictly factual,
this should be kept separately in secured files.  It is more
likely that material which is arguably not producible under
the Act will be withheld from the defense if it is kept apart
from material which is clearly Jencks Act material.  Rather
than disputing in court which portions of reports should be
excised, everything within a report should be relevant and
objective material.  Extraneous material which does not
directly relate to a case should not.be included in investi-
gative reports on that case.

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                          APPENDIX A
$3500 Demands for production of statements and reports of
      witnesses.
     (a)  In any criminal prosecution brought by the United
States, *no statement or report in the possession of the United
States which was made by a Government witness or prospective
Government witness (other than the defendant) shall be the
subject of subpoena, discovery, or inspection until said wit-
ress has testified on direct examination in the trial of the
case.

     (b)  After a witness called by the United States has tes-
tified on direct exami-nartitJn, the court shall, on motion of
the defendant, order the United States to produce any state-
ment (as hereinafter defined) of the witness in the possession
of the United States which relates to the subject matter as to
which the witness has testified.  If the entire contents of
any such statement relate to the subject matter of the testi-
mony of the witness, the court shall order it to be delivered
directly to the defendant for his examination and use.

     (c)  If the United States claims that any statement
ordered to be produced under this section contains matter
which does not relate to the subject matter of the testimony
of the witness, the court shall order the United States to
deliver such statement for the inspection of the court in
camera.  Upon such delivery the court shall excise the portions
of such statement which do not relate to the subject matter of
the testimony of the witness.  With such material excised, the
court shall then direct delivery of such statement to the
defendant for his use.  If, pursuant to such procedure, any
portion of such statement is withheld from the defendant and
the defendant objects to such withholding, and the trial is
continued to an adjudication of the guilt of the defendant,
the entire text of such statement shall be preserved by the
United States and, in the event the defendant appeals, shall
be made available to the appellate court for the purpose of
determining the correctness of the ruling of the trial judge.
Whenever any statement is delivered to a defendant pursuant to
this section, the court in its discretion, upon application of
said defendant, may recess proceedings in the trial for such
time as it may determine to be reasonably required for the
examination of such statement .by said defendant and his
preparation for its use in the trial.

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                              -2-
     (d)  If the United States elects not to comply with an
order of the court under subsection (b) or (c) hereof to
deliver to the defendant any such stateraentr or such portion
hereof as the court may direct, the court shall strike from
the record the testimony of the. witness, and the trial shall
proceed unless the court in its discretion shall determine
that' the interest interests of justice require that a mistrial
be declared.

     (e)  The term "statement"r as used in subsections (b),
(c)» and (d) of this section in relation to any witness
called by the United States, means—

          (1) a written statement made by said witness and
              signed or otherwise adopted or approved by him;

          (2) a stenographic, mechanical, electrical, or other
              recording, or a transcription thereof, which is
              a substantially verbatim recital of an oral
              statement made by said witness and recorded
              contemporaneously with the making of such oral
              statement; or

          (3) a statement, however taken or recorded, or a
              transcription thereof, if any, made by said
              witness to a grand jury.

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     I    UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                        WASHINGTON. OC 2B4CO
                          HOY 22 BBS
                                                        OFFICC or
                                                    CMFOMCKMKMT COUMKU
MEMORANDUM

SUBJECT:  Working Principles Underlying EPA16
          National Compliance/Enforces«jt Programs
FROM:     Courtney M. Prid	
          Assistant Administrator1 for Enforcement
          and Compliance Monitoring

TO:       Assistant Administrators
          Associate Administrators
          Regional Administrators, Regions I - X

     The working principles for EPA's national compliance/
enforcement programs set out below were developed by the
Compliance/Enforcement Task Group and are intended to establish
the framework and philosophy for the compliance and enforcement
programs administered by EPA.

     I believe it is important for us to strive to apply the
principles set out below in managing the compliance/enforce-
ment components of the Agency's programs.  To that end,
please make sure Office Directors and staff members with
responsibilities in these areas receive copies of this memorandum
so they that can use it as a guide in making choices for
managing these programs.

     I expect these principles to be dynamic and to change as
we proceed to implement the program specific compliance and
enforcement strategies the Task Group has developed.

     The fundamental objective of EPA18 national compliance/
enforcement program administered by EPA and the States is to
protect public health and the environment through a comprehensive
effort to foster full and expeditious compliance with environmental
laws and regulations.  Different components of the national
program are designed to achieve this goal through —

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                           -2-

     -- setting program goals and priorities  to  achieve  the
        environmental benefits;
                              •
     — identifying the regulated community to understand  the
        •cope of the problem;

     .. promoting compliance by the regulated community;

     — monitoring compliance by the regulated community to
        reliably detect violations of lavs  and regulations and
        establish program priorities;

     — responding appropriately to detected  violations;

     — working with State and local governments to  achieve
        national compliance and enforcement goals;

     — continually evaluating our progress in meeting our
        goals and objectives in each area of  the compliance/
        enforcement program and refining  our  efforts accordingly;

     — building public confidence in our compliance and enforcement
        efforts.

     Each of these components will be discussed  in more  detail
below.


I.  Setting Program Goals and Priorities  to Achieve  Environmental
    Benefits"

     *   Federal and State governments must share responsibility
         for developing and implementing  national compliance and
         enforcement strategies.

     4   EPA*s national compliance and enforcement programs
         will be based on realistic and attainable goals,
         considering the size of the regulated community and
         the scope of the requirements governing its activities.

     0   Although statutes enforced by EPA  may require strict
         compliance in all cases. EPA oust  establish priorities
         for enforcement since it is unlikely that EPA could
         respond with the same level of effort to each detected
         violation.  Individual programs  -may  establish both
         long term and short term goals to  achieve full,
         expeditious compliance.  In establishing and pursuing
         these specific goals, national strategies for compliance/
         enforcement activities will base priorities and
         targets on the following factors:

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                           -3-

             Likelihood  that a violation by a source or
             category of sources  will  result in pollution
             presenting  a signiffcant  risk to human health and
             the environment (based xm, £or example, the
          *   pollutant(s)  at issue, the type and sire of the
             source,  or  the likely scope of exposure to the
             excess pollution),.

         --   Likelihood  that a source  or category of sources
             will violate environmental laws or regulations
             (based on,  for example, their sophistication or
             compliance  history,  the newness or rampl-exity of
             the regulations, or  the economic incentives for
             noncompliance) .

             Likelihood  that an action will contribute
             significantly toward assuring a credible enforcement
             presence (for example, if the action is precedential
             in nature,  highly visible to the regulated community,
             or necessary to ensure that some attention is
             paid to a particular compliance/ enforcement area.)

         National programs must achieve a balance between those
         compliance and  enforcement actions which aost clearly
         result in significant,  immediate environmental benefit
         and those designed primarily  to support a credible
         enforcement presence (and the environmental benefits
         which that presence produces  less directly).

         The type of compliance or enforcement action chosen in
         individual cases will depend  on the priority or relative
         importance of the action in light of the considerations
         listed above and the amount of resources necessary to
         pursue a given  type of action relative to other possible
         actions.
II.  Identifying the Regulated Community to Understand the Scope
     of the Problem'

     *   To the extent practicable,  EPA's national  compliance
         and enforcement programs must  be able  to identify
         parties subject to environmental laws  and  regulations
         according to the types of  requirements governing
         their activities and the1 types of activities they
         perform.  Such "inventories are useful to establish
         priorities and select targets  across a program.
         This identification also aids  in evaluating the
         effectiveness of compliance/enforcement programs.

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                           -4-

     0    EPA will pursue all available,  cost-effective means
         for identifying the regulated  community,  including
         in-house investigators and regulatory mechanisms.

     *    Priority will be given to identifying those  parties
         in the regulated community who,  if in noncompliance,
         would have a significant impact on the  environment,
         public health or the credibility of the enforcement
        'program.


III.  Promoting Compliance by theHegulated Community

     •    Compliance promotion entails  ensuring that the
         regulated community has adequate information, tools,
         and techniques available to achieve compliance  and
         the incentive to use them. Compliance  promotion
         includes:

             clarifying responsibilities for the regulated
             community;

             providing technical information on  compliance
             t echn iques; and,

             encouraging voluntary efforts  to achieve, maintain
             and monitor compliance.

     *    EPA will promote compliance by resolving  issues affecting
         permit issuance and by issuing required permits in a
         timely manner.  Permits should clearly  state the
         compliance responsibilities of the permittee.

     *    Regulated parties bear responsibility for ensuring
         their own compliance.   Nevertheless, because preventing
         violations is more beneficial  for environmental
         protection than remedying the violations  after  they
         occur, national programs should provide for  compliance
         promotion activity.

     *    A credible enforcement, presence based on  credible
         enforcement responses is a prerequisite to ensure
         that regulated parties have incentive to  follow
         through on compliance promotion efforts.
                                 i
     *    Discretion end flexibility should generally  be  given
         to an individual regulated party for deciding on
         the best ways it can prevent noncompliance.

     *    Compliance promotion activities should  focus on
         making accessible meaningful  information  on  compliance
         techniques and systems for monitoring compliance
         and correcting noncompliance.

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                           -5-

     0   Compliance promotion activities should focus  most
         seriously on situations which involve newly-imposed
         or complicated requirements or inexperienced.
        'unsophisticated parties.
          •

IV.  Monitoring Compliance; Collecting and Assessing Compliance
     Information

     *   Objectives of compliance monitoring by the Federal
         government and States include:

             collecting evidence necessary to support enforcement
             actions regarding identified violations;

             reviewing source compliance to identify potential
             violations;

         —  developing an understanding of compliance patterns
             of the regulated community to aid in targeting
             activity, establishing compliance/enforcement
             priorities, evaluating strategies, and communicating
             information to the public; and.

             helping to establish an enforcement presence.

     *   Priorities for compliance monitoring activities should
         be set by EPA to achieve the objectives set out above.
         Factors to consider in setting priorities among these
         objectives and targeting compliance monitoring
         activities should include:

             the seriousness of violations which have
             been identified in the past for a particular
             source or category of sources;

             the extent to which compliance patterns already  have
             been identified;

         —  the extent of source review needed to establish  a
             credible enforcement presence; and,

         —  the criteria listed in Part I above.

     *   Methods for compliance monitoring will depend upon the
         objective of the monitoring activity and the resource
         requirements associated with the activity.  Thus, evidence
         collection efforts to support enforcement actions will
         employ more resource-intensive methodologies (e.g.,
         on-site inspections by expert, in-house criminal
         investigators) than will surveys of regulated community
         compliance patterns (which can rely nore easily on
         contractors or self-monitoring reports).

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Regulated parties should keep track of their own
compliance status using any required Methods, as
veil as whatever other means they deem reasonable
to provide themselves with Tellable Information.

Where reliable, cost-effective and authorized by law,
•national programs will rely on enforceable 6 elf-report ing
requirements as a primary screening tool for identifying
potential violations.

Because of the importance of »elf-report ing to the Agency's
task of compliance monitoring, national programs will
place high priority upon enforcement actions, including
criminal prosecutions, in cases of deliberate distortion
and/or falsification of self-reporting data.

National programs should use any available legal
authorities to collect useful information, but
must ensure that information requests are precisely
formed to avoid imposing any unnecessary information
collection requirements and should carefully consider
the extent to which the requests nay inhibit the
regulated party's own voluntary self-compliance
efforts.

All information requests not qualifying under the
enforcement exemption must conform to Che requirements
of the Paperwork Reduction Act.

Programs should identify and use, where cost-effective,
all sources of information concerning violations
(including citizen groups and outside regulatory
and law enforcment agencies).

Clear protocols should be identified to provide adequate
assurance of the quality and reliability of compliance
monitoring data in light of the purpose for vhich the
data will be used.

Compliance monitoring activity must, where feasible, assess
regulated parties' success at maintaining compliance as
well as at achieving it initially.

To the extent feasible, national programs will track
compliance patterns across all segments of the regulated
community in order to target enforcement intiatives
by identifying the relative seriousness of problem
areas.  Where not presently feasible, national programs
should attempt to identify and pursue ways for attaining
that capability.

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                           -7-

V.  Responding to Violations (Enforcement Responses)

     *   Federal or State officials,  as appropriate, will  evaluate
        .each detected violation and  make a conscious  decision as
         to the appropriate enforcement response.

     *   Enforcement responses to violations will  seek to
         balance the following
         —  Correction of the violation as  quickly  as  practicable
             in light of governing law,  technological feasibility
             and ongoing environmental risk.

         —  Deterrence of future violations by the  same  party
             or other parties.

         —  Equitable treatment of the regulated  community
             through a uniform approach to selecting enforce-
             ment responses and by taking responses  which
             remove significant benefits the violator may
             gain through non compliance.

             Punishment of serious, willful  wrong-doing by
             imposition of criminal sanctions.

         --  Effective use of enforcement resources  through  the
             least resource- intensive enforcement  response
             which still permits achievement of the  other national
             enforcement goals.

         Priorities for targeting violations for enforcement
         responses should be based on criteria  listed in  Part 1.
         Government officials may decide according to these
         criteria that a technical violation merits  such  low
         priority that no further response action  need  be
         considered.

         The severity of the response necessary to pursue these
         national enforcement goals will depend upon the  following
         considerations:

         —  the range of responses authorized  by  law;

             the actual or potential harm to public  health
             and the environment presented by the  violation;

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                  -s-

—  other significant public expense or injury caused
    by the violation;

—  economic benefit accruing to the violator;

—?  the violator's efforts to identify, report, and
    correct the violation independent of the enforcement
    response;

    the violator's previous history of compliance/non-
    compliance;

    the culpability of the violator;

    the sufficiency of evidence demonstrating a violation
    linked to the party in question;

    the likelihood that a given response may establish
    good or bad precedent; and,

    the importance of the action to maintaining a
    credible enforcement presence.

These same factors, as veil as a violator's ability to
pay, should be considered in deciding whether to pursue
civil penalties, and for what amount.  The economic
benefit to a violator from noncompliance is a particularly
important objective to consider in deciding on an appro-
priate amount.  Civil penalty actions are appropriate,
even if the underlying violation has been corrected, if
necessary to establish adequate deterrence against future
violations or to restore equity relative to other members
of the regulated community which have been in compliance.

The fora of the enforcement response (e.g., administra-
tive vs. Judicial) is not important per re, as long as
the response can achieve desired results.  Programs
vill chose responses based on the facts of the case
and the factors set out above.  Each available enforce-
ment tool (including judicial litigation) oust be
used often enough to establish the credibility of
that tool and provide real incentives for regulated
parties to pursue solutions in the context less
drastic aeasures (e.g., negotiations).

If a lover level enforcement response does not
result in achievement of the objectives for that
response, EPA vill escalate its enforcement response
accordingly.

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                  -9-

Negotiated resolution of enforcement actions should
be viewed as a cost-effective way of responding to
violations as long as the response still achieves
national enforcement goals.  However, a credible
threat of litigation or enforceable administrative
action is necessary for an effective negotiation
program.

Negotiations and other response activity must adhere to
definitive, government-established schedules to ensure
expeditious completion and remedy.  Government officials
•U6t

    apprise the alleged violator of the violation quickly
    so as to facilitate its correction;

    develop prior to the start of negotiations a common
    and clear understanding of the desired remedy or
    relief; and,

    in litigative enforcement matters, communicate through
    the attorneys representing each side.

Government officials must avoid taking any actions
or making representations which may foreclose possible
future enforcement actions in a case, particularly
in the event that new information subsequently comes
to light.

To preserve a credible enforcement presence, the
use of exemptions or relaxation of operative permit
provisions instead of enforcement responses as a
means of addressing committed violations should be
avoided unless exemptions or revisions are truly
warranted (i.e., the source qualifies for exemption
through straightforward application of criteria).

When Agency officials have determined that a response to
a violation should be developed as a potential criminal
enforcement action, civil proceedings typically
should await completion of the criminal action
unless injunctive relief is necessary.

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                           -10-

     0   Unless expressly exempted,  non-profit  institutions,
         including government entities, have  the same compliance
         responsibilities as entities  operated  for profit.
         The factors set out below,  in light  of the seriousness
         of the violations, say  affect the length of the
         violator's compliance schedule or the  amount of
         penalties imposed, but  not  the institution's ultimate
         .obligation to comply?  nevertheless, because of the
         unique characteristics  of these  institutions, selec-
         tion of responses to violations  by these institutions
         must carefully consider:

             the availability of funds to the institution  to
             meet the costs of compliance;

             the extent, if any, to  which economic benefit from
             non-compliance may  have motivated  the institution
             or have disadvantaged complying  competitors;  and,

             the ability of the  institution to  pay penalties.

     *   EPA will respond to violations by Federal facilities
         through the mechanisms  provided  by Executive Order 12088

     *   Enforcement responses to violations  once initiated,
         must be completed expeditiously  and  monitoring must
         be undertaken to ensure that  affected  parties comply
         with the requirements which the  responses impose.

     0   Administrative or judicial  orders should be drafted in
         a manner which facilitates  their enforcement.  Require-
         ments and responsibilities  should be clear and
         capable of being enforced.

     *   Significant violations  of requirements imposed in prior
         enforcement responses to address comparable violations
         aerit responses of their own  which are At least as
         severe as the prior response. Such  a  response should
         include, in appropriate cases, actions for civil  or
         criminal contempt.  Responses which  are  inadequate
         to bring continuing violations to a  halt can undermine
         the establishment of a  credible  enforcement presence.


VI.  Coordinating Federal and State  Activities

     0   Most environmental protection statutes provide States
         with the lead role in compliance and enforcement
         activities once EPA has authorized the State program.

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                  -11-

EPA retains the lead compliance and enforcement role
for statutory programs requiring national administration
(e.g., programs which .regulate nationally-marketed
products).  Otherwise, it has been EPA policy to
transfer the administration of such compliance and
enforcement programs to State and local governments
in a nanner consistent with applicable statutory
requirements.

EPA and the States oust work together to develop national
and local strategies and to plan their respective roles
in implementing these strategies.  "Roles may vary accord-
ing to the programs and States involved, but in all cases
should be articulated clearly at the planning stage of
strategy implementation.

EPA responsibilities include formulating national compliance
and enforcement goals and priorities; development of
necessary policy, guidance, and procedures;  overseeing
State performance; providing grants, technical assistance,
and training to States; and pursuing compliance and
enforcement action directly for nationally-administered
programs and for other cases where necessary to ensure
successful implementation of national strategies.
Such activities should reflect early and continuing
consultation with States.

State responsibilities include direct implementation of
authorized compliance and enforcement programs consistent
with national strategy and policy; putting federal grants
and technical assistance to effective use; contributing
meaningfully to the development of national policy and
strategy; and providing EPA with information necessary
to oversee and evaluate State activities and national
program implementation.

Oversight of State activities by EPA is undertaken to
ensure that compliance/enforcement responsibilities
are being carried out by the States.  Moreover,
oversight is a tool EPA uses to improve both Federal and
State enforcement programs by identifying problem areas
and aiding States in resolving problems identified.

EPA must base its oversight of State compliance and
enforcement activities according to clearly articulated
measures of State success in pursuing the goals of the
national compliance/enforcement program.

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States must provide EPA with the information necessary
to  perform oversight.  EPA must define information
needs  clearly  and uniformly, limit information gathering
-to  that  necessary to oversee State activities and
national program Implementation, and avoid frequent
changes  to the scope of reporting requirements, to the
extent feasible.

-EPA will take  the following action (or a combination
of  these actions) when oversight identifies an ineffective
state  compliance and enforcement program (depending on
the degree of
     provide more  training for State employees or technical,
     or on- site administrative assistance; or

     implement more detailed reporting requirements;

     take a more active role in compliance and enforcement
     actions;

 --   withdraw State program authorization (but only in the
     most extreme  cases).

 EPA will consider providing additional funds to help
 States improve effectiveness if it is clear that
 inadequate  funding is causing the ineffectiveness,
 that additional funding at the State level is not
 readily available, and that Federal funds are available.

 The level of scrutiny EPA gives to individual State
 actions will depend  on:

     demonstrated  State success in implementing a
     given program, i.e., achieving acceptable rates
     of compliance;

 —   the extent to which the State requests direct
     involvement;

     the environmental importance of a given individual
     action; and,

     the minimum level necessary to ensure the integrity
     of the  national  enforcement effort.

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                           -13-

     *   Where legal authority exists.  States generally will
         have primary responsibility for monitoring  compliance
         and pursuing responses to identified violations.
         -However,  EPA has  ultimate responsibility for  ensuring
         effective national enforcement of environmental
         laws.  Therefore, EPA will take an  active role in
         natters in which  the State is  unable or unwilling  to
         act, adequately or expeditiously, or if the natter
         'is one which has  national implications  or precedential
         Impact.  EPA will exercise this authority based upon
         clear criteria and will assure proper coordination
         with 'State programs.

     *   States will have  flexibility in choosing appropriate
         enforcement responses, which need not be identical to
         the response which EPA might have chosen.   Nevertheless,
         EPA will  take its own action,  despite ongoing State
         action, if EPA finds that State response to a significant
         violation is not  expeditious or is  clearly  inappropriate
         or inadequate to  achieve the relevant goals of an
         enforcement response (as listed in  Section  V).

     *   EPA vill  not expect States to  take  enforcement actions
         which are more severe or expeditious than EPA Itself
         would take in practice under comparable authorities.

     0   Both EPA and the  States are responsible for keeping each
         other informed on significant  ongoing compliance and
         enforcement activity of Interest  to the other to promote
         proper coordination, mutually-supportive action, and
         effective use of  resources at  both  levels of  government.


VII.  Implementing. Evaluating and Refining  Strategies

     *   Regional  offices  and State agencies, in consultation with
         each other, aust  develop their own  plans for  implementing
         national  program  strategies.

     0   Each national program must track  compliance and enforce-
         ment activity implementing its national strategy in order
         to

             evaluate the  success of the program in  achieving
             the strategies goals;'

         --  maintain understanding of  patterns  of compliance and
             noncompliance in the regulated  community.

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                           -14-

     *  EPA will pursue the establishment of national  tracking
        Bystems which can facilitate strategy evaluation and
        refinement by indicating,  at a minimum:

         —*  compliance rates and  patterns for significant
             sources;

         -•—  the extent of compliance review activity  (i.e.,
             inspections, self-monitoring reports,  etc.);

         —  the extent of complete and expeditious imple-
             mentation of enforcement responses.

     *   Periodic evaluation of strategy implementation on
         the national, Regional, and State level  vill  be
         undertaken within EPA to  influence the annual budget
         process and operating guidance.

     0   Periodic refinement of strategies will take place
         based on formal evaluation results and other  relevant
         information.  Refinement  can focus both  on new ways
         to achieve the original goals of the program  or on
         achieving new goals established for the  refined
         strategy.


VIII.   Building Public Confidence in EPA's Enforcement and
        Compliance Programs

     *   A credible enforcement program is the foundation  of
         an effective national strategy which ensures  that
         regulated parties have the requisite incentive to
         achieve full and expeditous compliance.  National
         programs oust possess the following characteristics
         to promote establishment  of a credible enforcement
         presence:

         --  Fairness.  Oversight  of the activities of regulated
             parti««~«u«t be conducted in .an unbiased  Aanixer.
             Enforcement responses must be commensurate with the
             seriousness of a violation, yet be flexible enough to
             account for extraordinary circumstances relevant to
             the violation.  Violators should not benefit
             from their violations relative to parties which
             are in compliance.

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                  -15-

--  Certainty.  Compliance requirements must be defined
    with sufficient clarity and precision to communi-
    cate expected standards of behavior.   The national
    programs must be effective in identifying significant
 .   violations and establish an adequate  likelihood
    that any kind of violation can be detected.
    Responses to identified violations must be
    consistent, expeditious and follow these principles
    and specific national guidance.

--  Uniformity.  EPA  should follow a uniform view
    of which actions constitute a violation of a
    given legal requirement.  EPA and States should
    employ reasonably similar treatment toward parties
    in comparable situations.

--  Openness.  Final actions taken in the compliance
    and enforcement areas will be available for public
    scrutiny to the extent allowed by law and the
    extent to which the success of future enforcement
    activity is not jeopardized.

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