EPA Enforcement and Next Generation Compliance

Transcription

1 EPA Enforcement and Next Generation Compliance 1 American Bar Association SEER Fall Conference October 9, 2014

2 EPA Enforcement Goals 2 Tough civil and criminal enforcement for violations that threaten communities and the environment Next Generation Compliance reduce pollution, increase compliance Strong EPA/state/tribal environmental protection

3 Tough Enforcement 3 Has been and remains our top priority Consequences for violations Deterrence Level playing field Focus on high impact cases - both civil and criminal

4 High Impact Cases: Protecting Communities Tonawanda Coke Endangered community by: Illegally releasing benzene into the air Improperly handling hazardous waste Company and plant manager convicted - ordered to pay $24 million + jail time for manager Ordered to clean up emissions Anadarko Years of toxic pollution covered up by fraudulent transfer of assets More than $4 billion to fund largest cleanup of environmental contamination in history 4

5 High Impact Cases: Company-Wide Resolution 5

6 High Impact Cases: Sector Focus Cutting hazardous air pollutants at refineries Flint Hills Resources Countrymark Refining Shell-Deer Park, TX BP Whiting, IN Marathon Petroleum Company 6 Reducing pollution from the largest sources (coal-fired power plants) Minnesota Power Consumers Energy

7 System Launch High Impact Cases: Level Playing Field 7 Owner falsified imported engine certificates of conformity, required under the Clean Air Act Sentenced to 28 months in prison and $354,529 in restitution Over 70,000 certificates had to be voided Blue Marsh Environmental Lab Violated CWA and submitted false test report to FDA Owner sentenced to 9 months in jail for falsifying test results Lab sentenced to 5 years probation

8 Next Generation Compliance 8 Rules with compliance built in Electronic reporting Advanced monitoring Increased transparency Innovative enforcement

9 Simplicity 1. More effective rules and permits Designed to make compliance the default Market mechanisms efficiency and clarity Transparency as accountability tool Self and third-party certifications 9 Rules and permits structured to promote compliance

10 Case Study: Rules on Coal Fired Power Plants 10

11 2. Advanced Monitoring Technologies Real-time monitoring knowing about pollution as it s happening Facility feedback loops preventing pollution before it happens Fenceline monitoring Community monitoring Remote sensing 11

12 Advanced Monitoring Finding Serious Violations 12 Marine tank vessel loading operations at a refinery

13 Advanced Monitoring 13 An example from flaring enforcement

14 Advanced Monitoring 14 Monitoring water quality in New Jersey coastal waters

15 3. Electronic Reporting 15 Information technologies make new solutions possible Smart tools and 2-way communication Private sector reporting tools NPDES e-reporting rule proposed last year Agency policy: electronic reporting the default Permit Violations Jul NPDES DMR Compliance in Ohio FY /08-6/09 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Reporting Month % edmr usage 100% 80% 60% 40% 20% 0% Facilities using edmr

16 4. Increased Transparency 16 Effective transparency drives performance E.g. Drinking Water Consumer Confidence Report Mailed report on compliance resulted in: Total violations: down 30-44% Health violations: down 40-57% *Bennear & Olmstead, Journal of Environmental Economics and Management (2008).

17 5. Innovative Enforcement 16 Include Next Gen ideas in settlements Advanced monitoring Electronic reporting under consent decree Public posting of compliance and pollution data Independent third party verification

18 Lowe s TSCA settlement Created lead paint compliance program covering 1,700 stores and thousands of contractors Use only EPA-certified contractors for pre-1978 or child-occupied homes Suspend contractors not in compliance Verify receipt of lead safe checklist prior to paying the companies Innovative Enforcement 18

19 Path Forward 19 Tough civil and criminal enforcement for violations that threaten communities and the environment Next Generation Compliance to increase compliance and reduce pollution Report a violation:

20 The Future of Environmental Enforcement 20 American Bar Association SEER Fall Conference October 9, 2014

21 When is Self-Reporting Prevalent? 2 Fine (self-reported) < Fine (EPA cited) x Probability of Detection But Probability of Detection is Due to Lower Budget So Fine (self-reported) must to maintain incentive to selfreport