... - - 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- ------- -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 ------- 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. ------- 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. ------- - 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. ------- - 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%) ------- - 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%) ------- - 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. ------- - 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) ------- - 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' ------- |