A recent audit report by the United States Environmental Protection Agency (EPA) Office of Inspector General (OIG) has evaluated EPA and state air pollution control programs and found that Michigan and Region 5 imposed higher penalties for air pollution requirement violations over an 18-month period than other states and EPA Regions studied. A second study concluded that, while EPA's air program has been effective in reducing pollutant emissions, greater efficiency could be achieved in a variety of program areas.
The first report, dated September 30, 1997, evaluated the air enforcement and compliance assistance programs of EPA Regions 5, 6, and 9 and nine state agencies within those Regions, including the states of Michigan, Indiana, Texas, Louisiana, and California; and four California air quality management districts. In particular, the purposes of this audit included determining whether: (1) the level of enforcement activity was consistent throughout the nation; (2) the state and federal air quality agencies have adequately publicized enforcement actions, assessed the economic benefit component of penalties, and conducted compliance assistance activities; and (3) EPA Regions had effective management information systems for tracking enforcement actions. The audit found room for improvement in each of the areas assessed.
Of particular interest, OIG found that the level of enforcement activity was not consistent throughout the nation. Michigan assessed civil penalties of more than $100,000 during the 18-month period reviewed by OIG (October 1, 1993 through June 30, 1995) more frequently than any other state agency included in the study. Michigan assessed four penalties greater than $100,000. Indiana assessed three penalties greater than $100,000, while only two other state agencies included in the study assessed any penalties greater than $100,00. Michigan also assessed higher average penalties per enforcement action than any other state included in the audit. Michigan assessed an average penalty of more than $68,000, twice as much as the average penalty assessed in Indiana ($34,000), the state with the second highest average penalty amount.
Enforcement activity at EPA Region 5 also was greater than the level of enforcement activity at EPA Regions 6 and 9, according to the audit. EPA Region 5 completed 33 enforcement actions, with penalties totaling more than $6 million, while EPA Region 9 completed 25 enforcement actions with total penalties of about $3.5 million, and EPA Region 6 completed only two cases and assessed only $100,000 in penalties.
The OIG also found that not all state agencies consistently assessed the economic benefit of a violation when setting the penalty for that violation. Of the states included in the audit, only Michigan consistently assessed the economic benefit of a violation and included that amount in the penalty, according to the OIG.
In addition, the OIG audit report found that EPA and state agencies could improve their methods for publicizing enforcement activities, including improving the quality of press releases. The OIG also made recommendations for improving the quality of data in EPA and state enforcement information databases.
On the subject of compliance assistance, the OIG found that the Regional and state offices had conducted compliance assistance activities, but the lack of a formal mechanism for sharing information about compliance assistance activities could create duplication of effort. Therefore, the OIG recommended the establishment of a clearinghouse of information about compliance assistance activities.
The second OIG audit, dated February 27, 1998, evaluated the effectiveness and efficiency of EPA's air program. The OIG found that EPA's air program has been effective in reducing emissions of the "criteria pollutants:" lead, carbon monoxide, sulfur dioxide, particulate matter, nitrogen dioxide, and ozone/volatile organic compounds (VOCs). The OIG attributed most of the reductions to emission controls placed on motor vehicles and utilities. Lead emissions declined the most, by 75% between 1987 and 1996. During the same period, carbon monoxide and sulfur dioxide emissions declined by 37%, particulate matter by 25% (1988 - 1996 data), ozone/VOCs by 15%, and nitrogen dioxide by 10%. The OIG audit report noted that these emission reductions occurred during a period of growth in the United States economy, population, and motor vehicle use.
The OIG report also identified a number of areas in which EPA's air program could operate more efficiently. OIG recommended that EPA's Office of Air and Radiation and Office of Research and Development need to resolve disputes over how research and monitoring resources are spent to improve efficiency in those activities. The OIG also found that EPA's Office of Air and Radiation and Office of Communications, Education, and Public Affairs should work together to raise public awareness of air pollution causes, effects, and remedies. EPA also should increase its efforts to provide feedback to stakeholders who provide input to EPA's decisions.
Finally, the OIG found that EPA should place a higher priority on three areas that have been underemphasized in recent years: processing state implementation plan submittals; developing and improving emission factors, and promulgating emission standards for hazardous air pollutants.
This article was prepared by S. Lee Johnson, a partner in our Environmental Department, and previously appeared in the July, 1998 edition of the Michigan Environmental Compliance Update, a monthly newsletter prepared by the Environmental Department and published by M. Lee Smith Publishers.