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Agency
Office of Enforcement and Compliance Assurance (2201 A)
EPA 300-B-15-003 December 2015
Office of Enforcement and Compliance Assurance
eDisclosure Information Sheet
EPA Modernizes Implementation of Its Audit Policy
& Small Business Compliance Policy
EPA's eDisclosure portal is a centralized "Next Generation" web-based system for more
efficiently receiving and processing violations disclosed to EPA under its self-disclosure policies.
What is EPA's Audit Policy? What is the
Small Business Compliance Policy?
Revised in 2000, these policies offer penalty
mitigation and other incentives for companies
that discover, promptly disclose, and
expeditiously correct environmental violations,
and take steps to prevent future violations.
Why has EPA changed how it implements
these policies?
EPA believes strongly in the benefits of the Audit
Policy and the Small Business Compliance
Policy: to provide penalty mitigation and other
incentives for companies to self-police, disclose,
correct and prevent violations.
Companies have suggested that EPA could
streamline implementation of the Audit Policy for
more routine disclosures to make the process
faster and more efficient, and to save time and
resources for regulated entities and EPA, while
still retaining the incentives to self-police
environmental problems. They also have
emphasized that a key time to encourage self-
auditing and self-disclosure is when new
companies are purchased or acquired because
that is when companies are very motivated to
find and fix problems and make a fresh start.
EPA has modernized implementation of these
self-disclosure policies by creating a centralized
web-based "eDisclosure" portal to meet these
goals, in a way that also will be easy for small
businesses to use. Under the automated
eDisclosure system, large and small businesses
will quickly get some of their more routine types
of disclosures resolved. At the same time, EPA is
retaining the incentives outlined in its New Owner
Policy and will continue to accept and process
new owner disclosures outside the eDisclosure
system.
What types of violations can be processed
through the new eDisclosure portal?
The portal can accept new disclosures involving
almost all types of civil violations.
Pre-existing unresolved EPCRA disclosures can
be resubmitted through the eDisclosure system
within 120 days after launch of the portal, but
pre-existing disclosures that are subject to audit
agreements will be resolved outside the
eDisclosure system through a Notice of
Determination (NOD), Consent Agreement and
Final Order (CAFO), or Consent Decree (CD).
New owners may use the portal to disclose
violations, but the portal is not designed to apply
the August 2008 New Owner Policy. To provide
the full benefits of the New Owner Policy, EPA
will accept and process new owner disclosures
outside the eDisclosure system.
How does the eDisclosure process work?
Those using the portal must: (1) register with the
system; (2) promptly disclose their violations
online within 21 days of discovery; and (3) submit
an online Compliance Certification describing
how any noncompliance was timely corrected.
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The Compliance Certification is ordinarily due
within 60 days of submitting an initial online Audit
Policy disclosure (or within 90 days for Small
Business Compliance Policy disclosures), but
limited reporting deadline extensions are possible
in certain circumstances.
How will self-disclosed violations be
processed through the eDisclosure portal?
Each disclosure will be processed as either a
"Category 1" or a "Category 2" disclosure.
Category 1 Disclosures include EPCRA
violations that meet all Audit Policy or Small
Business Compliance Policy conditions, but do
not include: (1) CERCLA 103/EPCRA 304
chemical release reporting violations; or (2)
EPCRA violations with significant economic
benefit as defined by EPA.
For disclosures that qualify as Category 1, the
eDisclosure system will automatically issue an
electronic Notice of Determination (eNOD)
confirming that the violations are resolved with no
assessment of civil penalties, conditioned on the
accuracy and completeness of the submitter's
certified eDisclosure.
Category 2 Disclosures include: (1) all non-
EPCRA violations; (2) EPCRA violations where
the violator can only certify compliance with Audit
Policy Conditions 2-9 (i.e., discovery was not
systematic), and (3) EPCRA/CERCLA violations
excluded from Category 1.
For disclosures that qualify as Category 2, the
eDisclosure system will automatically issue an
electronic Acknowledgement Letter (AL)
confirming EPA's receipt of the disclosure, and
promising that EPA will make a determination as
to eligibility for penalty mitigation if and when it
considers taking an enforcement action for
environmental violations.
Can the correction period be extended?
To obtain an eNOD, Category 1 disclosers must
correct their violations: (a) within 60 days of the
date of discovery to obtain penalty mitigation
under the Audit Policy; or (b) within 90 days of
the date of discovery to obtain penalty mitigation
under the Small Business Compliance Policy.
Extensions of the correction deadlines are only
available for Category 2 disclosures, and some
extension requests require the discloser to
provide an online explanation or justification.
Without an "eyes-on" review of self-
disclosures prior to their automatic
processing under Category 1 or Category 2,
how will EPA ensure that submitters do not
game the system to their own advantage?
EPA will spot check Category 1 disclosures for
possible errors and inconsistencies, and
Category 1 eNODs are conditional upon the
accuracy of the representations made by the
submitter. EPA will screen Category 2
disclosures for criminal violations and other
serious issues. In addition, if and when EPA
considers taking enforcement action for
environmental violations, it may determine that
Category 2 disclosures are not eligible for penalty
mitigation. EPA believes that these safeguards
will help to ensure the integrity of the data
submitted through the eDisclosure portal.
Can consultants, attorneys, or agents
acting on behalf of a regulated entity
disclose violations through eDisclosure?
Consultants, attorneys, or other agents may
disclose violations through the eDisclosure portal
on behalf of a regulated entity. The portal
requires anyone submitting information to be
identity-proofed, and to specify on whose behalf
the filing is being made.
When will eDisclosure be available?
After considering input received as a result of the
June 2015 public engagement webinars, EPA
launched the eDisclosure system on December
9, 2015, and issued a Federal Register notice
describing how it will implement the Audit Policy
and Small Business Compliance Policy.
EPA Websites
http://www2.epa.gov/compliance/epas-audit-policy
http://www2.epa.qov/enforcement/small-businesses-
and-enforcement
http://www2.epa.qov/compliance/epas-edisclosure
Contact for Further Information
milton.philip@epa.gov (202-564-5029)
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