EPA Audit Policy Update

EPA has issued an update to its audit policy to encourage companies with multiple facilities to take advantage of that policy by conducting corporate – wide audits and developing corporate – wide compliance systems. The audit policy eliminates gravity based penalties for companies that voluntarily discover, properly disclose and expeditiously correct violations of federal environmental law. EPA claims that corporate auditing agreements can be effective mechanisms to resolve a broad range and number of corporate – wide violations discovered during environmental audits. They allow companies to plan a corporate – wide audit with an advance understanding between the company and the EPA regarding schedules for conducting the audit and disclosing violations beyond the current 10 day disclosure requirements for single facility disclosures. According to EPA, the company benefits in the following ways: (1)it can evaluate corporate practices and environmental compliance without the stigma of an enforcement action; (2)it removes the uncertainty and cost of litigation, attorneys' fees and sanctions for violations; (3)it provides the company with assurance that violations disclosed over an extended schedule will meet EPA's expectation for timely disclosure; and (4)it provides an opportunity for companies to design and implement practices that incorporate environmental compliance into corporate operations. EPA pledges to withhold disclosure of findings and documents from public release until the case is formally settled.