1 Module 2: Promoting Compliance with Environmental Law

2 Introduction to Compliance Lake Victoria Falls, Zimbabwe. Source: UNESCO.

3 What is Compliance?  Conformity or identity between an actor’s behavior and a specified rule  Full implementation of environmental requirements  An essential indicator of good governance and respect for the rule of law

4 Who Ensures Compliance?  National Environment Agency / Ministry  Other national-level agencies  Other branches of government  Other levels of government  The regulated community  Nongovernmental organizations / Citizens

5 Ways to Involve the Public in Compliance  Transparency of Government E.g., government should notify public that requirements are being formulated E.g., government should notify public that requirements are being formulated  Access to Information E.g., public should be able to receive information from government on details of regulatory process E.g., public should be able to receive information from government on details of regulatory process  Opportunity for Participation E.g., public should be able to report violators and/or file citizen suits to force compliance E.g., public should be able to report violators and/or file citizen suits to force compliance

6 Producing Compliance Two Principal Means:  Coercion (enforcement)  Promotion

7 Compliance Theory

8 Regulated Facilities  Less Degree of Compliance More  Creating an Atmosphere Favoring Compliance Noncompliant Compliant Impressionable

9 Regulated Facilities  Less Degree of Compliance More  Noncompliant Impressionable Compliant Creating an Atmosphere Favoring Compliance

10 Regulated Facilities  Less Degree of Compliance More  Civil or Administrative Enforcement Financial Incentives Criminal Prosecution Recognition & Reward Technical Assistance Inspections Publicity Compliant Impressionable Noncompliant Creating an Atmosphere Favoring Compliance

11 Financial Incentives Regulated Facilities  Less Degree of Compliance More  Recognition & Reward Civil or Administrative Enforcement Inspections Technical Assistance Publicity Criminal Prosecution Noncompliant Impressionable Compliant Creating an Atmosphere Favoring Compliance

12 Compliance Promotion

13 Compliance Promotion  Focuses on changing behavior by addressing obstacles to compliance lack of knowledge lack of knowledge lack of technology lack of technology lack of will to comply lack of will to comply economics economics moral values moral values social values social values  Remember that compliance promotion goes hand-in- hand with enforcement. Enforcement creates a climate in which the regulated community has incentives to use the opportunities provided by promotion.

14 Compliance Promotion Tools  Capacity Building: Education & Technical Assistance  Publicity  Building Public Support  Financial Arrangements  Economic Incentives

15 Capacity Building: Education & Technical Assistance  Provides information about the requirements and how to meet them  Provides assistance to help regulated facilities take the necessary steps to achieve compliance  Particularly important when: Community wants to comply, but does not have the capacity to do so yet Community wants to comply, but does not have the capacity to do so yet A new program is in its early stages A new program is in its early stages Program requirements have changed Program requirements have changed

16 Publicity  Publicize stories of facilities that have been particularly successful in complying or particularly egregious in their non-compliance  Publicize successful enforcement actions against environmental non-compliance Can deter future violations Can deter future violations  Can reinforce positive societal environmental ethics and public support in favor of strong environmental enforcement

17 Building Public Support  Citizens can: Create societal pressure for action Create societal pressure for action Help ensure enforcement programs receive funds Help ensure enforcement programs receive funds Be actively involved if the law provides a role for them Be actively involved if the law provides a role for them It is vital that the public be involved in compliance!

18 Financial Arrangements  Help facilities overcome barrier of cost  Examples include: Offset requirements - investors in a new facility must pay for modifications (e.g., updating technology) to reduce or “offset” pollution at an existing facility Offset requirements - investors in a new facility must pay for modifications (e.g., updating technology) to reduce or “offset” pollution at an existing facility Loans – institutions loaning money for new investments require a portion of the loan be applied to restoration or protection of environmental quality Loans – institutions loaning money for new investments require a portion of the loan be applied to restoration or protection of environmental quality Revolving Funds - providers of water services finance their continuing operations with income derived from sales to customers Revolving Funds - providers of water services finance their continuing operations with income derived from sales to customers

19 Economic Incentives/Disincentives Fees - Facility charged based on characteristics of its pollution (e.g., amount or toxicity of effluent). Fees should be high enough to deter pollution. Fees - Facility charged based on characteristics of its pollution (e.g., amount or toxicity of effluent). Fees should be high enough to deter pollution. Tax Credits – Reduced taxes for costs associated with improving environmental quality, e.g., installing pollution control equipment Tax Credits – Reduced taxes for costs associated with improving environmental quality, e.g., installing pollution control equipment Pollution Taxes – Taxes based on the volume and/or toxicity of effluents generated Pollution Taxes – Taxes based on the volume and/or toxicity of effluents generated Subsidies – Facilities that comply with requirements can receive a subsidy to help defray the cost of compliance Subsidies – Facilities that comply with requirements can receive a subsidy to help defray the cost of compliance Bonuses for facility or operator – For achieving better results than specified in permits, licenses, or regulations Bonuses for facility or operator – For achieving better results than specified in permits, licenses, or regulations Promotion point system – For senior managers in government- owned facilities achieving compliance Promotion point system – For senior managers in government- owned facilities achieving compliance

20 Setting Priorities

21 Key Concepts for Priority Setting  Balancing Objectives: Protecting environmental quality and public health Protecting environmental quality and public health Maximizing program resources Maximizing program resources  Apportioning resources between compliance promotion and enforcement responses  Setting general principles for how to respond to various types and degrees of violations  Targeting inspections to achieve deterrence and detect violations

22 Considerations When Setting Priorities  Ensure consistency and harmony among regional, provincial, and local priorities  Respond to issues of national concern in a coherent, coordinated manner  Important to involve national, regional, provincial, and local governments  Local authorities may have best knowledge of local facilities and significant local threats

23 Understanding the Regulated Community  Regulated community may include: corporations, small businesses, public agencies, state-owned facilities, individuals  Accurate profile allows policymakers to target the compliance strategy to maximize effectiveness  Gathering information about the community: Inventories Inventories Permit or license applications Permit or license applications Registration Registration Existing records Existing records Overflights Overflights

24 Focusing Resources  A program with limited resources may choose to focus on the small percentage of facilities that cause most of the pollution  Targeting certain facilities can have a broader deterrence effect  Approaches to focusing resources: Significant violators, type of industry, geographic location, type of emission, compliance history, etc. Significant violators, type of industry, geographic location, type of emission, compliance history, etc.

25 Exercise Priority Setting

26 Coming Up Next  Module 1: Building a Legal Foundation for Good Water Governance  Module 2: Promoting Compliance with Environmental Laws  Module 3: Responding to Violations of Environmental Laws  Module 4: Designing Performance Indicators for Environmental Compliance and Enforcement Programs