...    - -             urnce or
                     tnvironmental Protection      Public Affairs (A-107)
                     A9ency                Washington DC 20460
4>EPA             Note to Correspondents
                      WEDNESDAY, AUGUST 16, 1989
                            EPA set a record in fiscal year 1988 for

                       penalties obtained against  violators of environ-

                       mental laws (summary data attached).  The agency

                       obtained $36.8 million in civil penalties in federal

                       courts and in administrative proceedings.  EPA's

                       criminal enforcement effort also got results

                       in 1988.  Fifty defendants  were convicted of

                       environmental crimes.   Fines totaling $8.6 million

                       were assessed in criminal cases, with $1.4 million

                       ordered after suspension.   Environmental criminals

                       were sentenced to 30 years  of  jail time in 1988,

                       with eight years ordered after suspension.

                            EPA Administrator William K. Reilly said,
                       "I am pleased to see these  record enforcement numbers.
                       They show EPA and the federal government generally
                       are getting tougher on enforcement, which is the
                       cornerstone of EPA's environmental programs.  We
                       expect to see even more activity in the future as
                       we improve compliance with  the nation's environmental
                       laws."

                            EPA's analysis indicates  that few violators got
                       away without a penalty.  Penalties were assessed in
                       92 percent of those enforcement cases filed by EPA
                       under  statutory provisions  that provide for penalties
  R-154 ,                                   -more-

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                                  -2-

     A typical  civil  violator paid  thousands  of dollars  in penalties last
year.  EPA has  analyzed penalties in terms  of median and average figures
for each program.

     The highest  civil penalty  was  $2  million in a Clean Water Act case,
one of four  cases over $1  million in that program.  Penalties over $1
million were also obtained in court cases by  the stationary-source air
program (three  cases  over  $1 million)  and hazardous waste control program
(one case over  $1 million).  Administrative cases obtained penalties over
$1 million in the mobile-source air and toxic-chemicals  control programs.

     Some of EPA's newer programs also chalked up penalties  in 1988.  EPA
used its new authority for the  first time  in  1988 to challenge Clean Water
Act violations  administratively and assessed  more than $500,000 in 40 cases
In addition, underground  injection  control  cases under the Safe Drinking
Water Act went  from about  $19,000 in 1987  to  $422,000 in the second full
year of this effort.

     For more information, contact  Robin Woods at 202-382-4377.


                                         Dave  Cohen, Director
                                         Press Services Division
                                         202-382-4355

R-154

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              FACT SHEET ON FY 1988 PENALTY ANALYSIS
Cases covered

The penalties analyzed in the analysis are cash amounts assessed
in EPA enforcement cases concluded in Fiscal Year 1988.  They
reflect final judgments by a court, consent decrees and consent
orders reflecting settlements, and final administrative orders.
The analysis does not include "proposed penalties" or other
amounts under discussion prior to the conclusion of a case, and
it does not include penalties paid to entities other than the
Federal Government.  Contempt enforcement actions are not
included, nor are "benefit projects" or other non-monetary
actions.

Types of cases

In most EPA programs, the Agency has authority to bring civil
enforcement actions either in the U.S. Court system, in which
case they are called  judicial cases, or in EPA's own
administrative  judicial system, in which case they are called
administrative  cases.  Criminal cases are brought only through
the U.S. Court  system.

The majority of EPA's civil  cases are administrative; some
87 percent of those concluded in FY  1988 were administrative
cases.  Such cases are less  costly for the government to pursue
than  judicial ones.   But  judicial cases generally result in
higher penalties; 68  percent of all  EPA federal penalty dollars
in FY 1988 were in  judicial  cases.

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            SUMMARY  OF  EPA FEDERAL PENALTIES  IN  FY  1988


General Findings

o  .EPA has  obtained over $151  million  in  civil  penalties through
   FY 1988.

o  A new record was set  in FY  1988, with  $36.8  million in civil
   penalties  — a 51 percent increase  over FY 1987.1

o  Criminal fines of over $8.6 million were  assessed in FY 1988,
   and 30 years of  incarceration were  imposed (before deducting
   suspended  sentences).   After suspension,  fines  of over $1.4
   million  and incarceration of almost eight years were ordered
   by the courts.

o  Seventy-four percent  of all EPA's civil penalties to date were
   imposed  in the last five years, from FY 1984 through FY 1988.
   Some 24  percent  of  all penalties were  imposed in FY 1988
   alone.

o  The 51 percent growth in penalty dollars  in  FY  1988 can be
   attributed to three changes from the previous year.  First,
   relatively new enforcement  initiatives resulted in substantial
   penalties  in FY  1988,  specifically  RCRA interim status
   judicial cases and  implementation of administrative penalty
   authorities under the Clean Water Act  and Safe  Drinking Water
   Act (Underground Injection  Control).   Second, four well
   established programs  showed major increases  in  penalties (the
   Clean Water Act,  Stationary Source  Air, RCRA and TSCA
   programs).  Third,  a  larger percentage of the cases were in
   programs which obtain traditionally high-dollar penalties
   (most notably the Clean Water Act program).

o  Penalties  were obtained in  92 percent of  the cases concluded
   in FY 1988.
     1 This does not include the $15-million penalty in the
lodged  but not yet filed, consent decree in the Texas Eastern
Pipeline case, which was still pending early in FY 1989.

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                            - 2 -
Program Highlights

o  The penalty dollars were dominated by Clean Water Act (34%)
   and Stationary Source Air  (25%) cases.  These were followed by
   RCRA (17%), TSCA  (14%) and Mobile Source Air (7%) cases.

o  The numbers of cases were dominated by four penalty programs
   that heavily use  administrative enforcement cases —
   TSCA (42%), Mobile Source Air  (17%), FIFRA (13%) and
   RCRA (11%).

o  Four programs set new records  for total dollars and number of
   cases — Clean Water Act, Safe Drinking Water Act, Stationary
   Source Air and RCRA.

o  Two programs obtained their first penalties through
   administrative cases in FY 1988 —  Clean Water Act and
   Wetlands Protection.

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                                       - 3 -
      40
                                   Figure 1
                TOTAL PENALTIES  BY  FISCAL  YEAR
                           CIVIL JUDICIAL AND ADMINISTRATIVE
      35
(/l
      30
      25
      20
kl
D.
15
      10
                                                     —i—
                                                     1986
        1981      1982     1983     1984     1985

                                   FISCAL YEAR
                                                        1987
1988
                  TOTAL PENALTY DOLLARS BY FISCAL YEAR
             1988 (24.3%)
                                         THRU 1980 (13.9%)
             1987 (16.1%)
                                                        1981 (4.2%)

                                                         1982 (2.9%)


                                                          1983 (5.2%)


                                                          1984 (4.6%)
                                                    1985 (15.1%)
                           1986 (13.7%)

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                            - 4 -

                           Figure 2

        PERCENT PENALTY  DOLLARS  BY PROGRAM
                          FY 1988
                 OTHERS (3.4%)

        TSCA (13.9%)
RCRA (17.0%)
      MOBILE (7.2%)
                                               CWA (33.8%)
                                   STAT AIR (24.7%)
                           Figure 3
          PERCENT PENALTY CASES BY PROGRAM
                           FY 1988
                  OTHERS (3.9%)        CWA (8.7%)
         F1FRA (12.9%)
        TSCA (41.5%)
STAT AIR (5.2%)
                                                  MOBILE (16.6%)
                                              RCRA (11.0%)

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                            - 5 -
                             Table 1
in
Clean Water Act (NPDES) . . .
Judicial
Administrative
Safe Drinking Water Act . . .
Judicial
Administrative
Judicial
Administrative
Judicial
Administrative
Judicial
Administrative
Hazardous Waste (RCRA) . . .
Judicial
Administrative
Toxic Chemical Control (TSCA)
Pesticide Control (FIFRA) . .
Super fund (CERCLA) 	
TnTAT.
•f-t-^AJ- wniv* j-ivAmj.na.iJi-j.ai-x
FY 1988
Total dollars
( percent )
$ 12,427,658 (34%)
11,885,858
541,800
472,630 (1%)
49,740
422,890
147,000 (<1%)
25,000
122,000
9,062,497 (25%)
8,914,384
148,113
2,657,293 (7%)
10,000
2,647,293
. 6,236,892 (17%)
3,776,239
2,460,653
. 5,126,057 (14%)
317,494 (1%)
315,000 (1%)
$ 36,762,521 (100%)
V«^ JTC1EMJ. WJ.V..J
No. All Cases*
( percent!
127
87
40
101
6
95
10
5
5
78
74
4
238
1
237
177
22
155 ,
604
215
1
1,551
(8%)

(7%)
(1%)
(5%)
(15%)
(11%)

(39%)
(14%)
(<1%)
(100%)
         of all cases" here includes all cases with or without
penalties   Percentages shown here will differ from other
anatysefbased on only those cases with cash penalties.

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                             - 6 -
                             Table 2
         Total  Amount of Criminal  Fines  and  Incarceration
                            in FY  1988
Number of defendants convicted                         50

Total•fines assessed
     Before suspension                            $ 8,645,050
     Ordered  (after suspension)                     1,450,050

Total months  incarceration
     Sentenced  (before suspension)               369 (30 years)
     Ordered  (after suspension,
       before parole)                             95 (8 years)

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                            - 7 -
                             Table 3

                Median and Average Civil Penalties
                            in FY 1988
Program and Type of Case
Median
Average
Number of
Cases with
Penalty
Clean Water Act (NPDES)
Judicial $
Administrative
Safe Drinking Water Act
Judicial
Administrative
Wetlands Protection
Judicial
Administrative
Stationary Source Air
Judicial
Administrative
Mobile Source Air
Judicial
Administrative
Hazardous Waste (RCRA)
Judicial
Administrative
Toxic Chemical Control (TSCA)
Administrative
Pesticide Control (FIFRA)
Administrative
37,500
8,500
4,900
2,750
6,250
19,000
30,000
39,397
10,000
500
96,479
9,440
1,500
1,200
$ 139,834
13,545
8,290
10,572
6,250
24,400
125,555
37,028
10,000
11,217
209,791
17,576
8,615
1,716
85
40
6
40
4
5
71
4
1
236
18
140
595
185'

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