1

2 ENFORCEMENT & COMPLIANCE: LESSONS LEARNED Michael J. Walker Senior Enforcement Counsel U.S. EPA - Office of Enforcement & Compliance Assurance Washington, D.C. 12 Annual AmCham Trinidad and Tobago HSSE Conference September Port of Spain, Trinidad

3 Behavior Modification 101 Environmental Issues Remain a National Concern Environmental Issues Remain a National Concern (And more than ever—an international concern) Compliance and Proper Management is Essential Compliance and Proper Management is Essential Developing and effective, pro-active compliance assurance program is essential Developing and effective, pro-active compliance assurance program is essential

4 Some Key Concepts Compliance is a full time job Compliance is a full time job Early identification of potential problems Early identification of potential problems —and development of active and effective strategies is essential Self-monitoring of environmental compliance is important—perhaps more important than internal audits for financial accounting controls Self-monitoring of environmental compliance is important—perhaps more important than internal audits for financial accounting controls The number of indictments is increasing The number of indictments is increasing Corporations and individuals don’t go to jail, individuals do Corporations and individuals don’t go to jail, individuals do

5 Communication What is expected What is expected Why it is expected Why it is expected What will happen if compliance is not achieved and maintained What will happen if compliance is not achieved and maintained How to achieve and maintain compliance in ways that are cost effective and sensible How to achieve and maintain compliance in ways that are cost effective and sensible

6 Tools of Compliance Civil fines/Criminal fines Civil fines/Criminal fines Incarceration Incarceration Loss of licenses and permits Loss of licenses and permits Contractor listing or debarment Contractor listing or debarment SEC sanctions SEC sanctions Shareholder suits Shareholder suits Tort actions Tort actions Citizen suits Citizen suits Damage to name and reputation Damage to name and reputation

7 Command & Control Anticipate & Prevent Goal: move from control to prevent Goal: move from control to prevent EPA is not in the business of ending business EPA is not in the business of ending business EPA knows the federal government must work with and listen to those who must live with environmental decisions EPA knows the federal government must work with and listen to those who must live with environmental decisions

8 Our Goal: Protect the Environment Prevent pollution before it happens Prevent pollution before it happens Achieve environmental justice Achieve environmental justice equal protection from environmental harms Protect whole ecosystems Protect whole ecosystems Build partnerships with state, local and tribal governments, as well as the public and regulated community Build partnerships with state, local and tribal governments, as well as the public and regulated community

9 Enforcement Goal: Prevent Environmental Degradation Deter violations Deter violations provide incentives for compliance Require correction Require correction Recover economic benefit Recover economic benefit and maintain a level playing field

10 Enforcement and Compliance Part 1 Maintain an imposing enforcement presence Maintain an imposing enforcement presence Apply tough criminal sanctions Apply tough criminal sanctions Monetary penalties Injunctive relief Enforce against federal facilities Enforce against federal facilities

11 Enforcement and Compliance Part 2 Offer technical advice Offer technical advice Teach compliance seminars Teach compliance seminars Conduct on-site compliance assessments Conduct on-site compliance assessments

12 Enforcement and Compliance Part 3 Organize enforcement around economy sectors and specific ecosystems Organize enforcement around economy sectors and specific ecosystems Focus resources to best determine needs and effectuate improvements Focus resources to best determine needs and effectuate improvements Balance uniformity with flexibility Balance uniformity with flexibility

13 Enforcement and Compliance Part 4 Comprehensive Focus Comprehensive Focus Use all environmental statutes Eliminate pollution--not relocation of pollution Multi-media and whole-facility approaches Multi-media and whole-facility approaches

14 Enforcement and Compliance Part 5 Measurements = key to assessment Measurements = key to assessment Emphasis = Compliance numbers and environmental quality Emphasis = Compliance numbers and environmental quality Number of cases and size of penalties are not best measures of environmental improvements Number of cases and size of penalties are not best measures of environmental improvements Quality versus quantity Quality versus quantity -penalties that recover economic advantage -reform violators

15 Example: Eljer Industries “We recognize the importance of and are committed to sound environmental management as essential to all components of our business.” “We recognize the importance of and are committed to sound environmental management as essential to all components of our business.” “We will require every employee [to carry] out the spirit as well as the letter of this policy...” “We will require every employee [to carry] out the spirit as well as the letter of this policy...”

16 Eljer Goals Reduce or eliminate the generation of waste Reduce or eliminate the generation of waste Prevent adverse impacts on the environment Prevent adverse impacts on the environment Recognize and respond to community concerns Recognize and respond to community concerns

17 Elger Commitments Comply with all environmental laws Comply with all environmental laws Exercise environmental responsibility Exercise environmental responsibility Minimize waste Minimize waste Conserve resources Conserve resources Cooperate with government agencies to develop cost effective and scientifically-based environmental policies Cooperate with government agencies to develop cost effective and scientifically-based environmental policies Protect employees who report dangerous incidents or conditions Protect employees who report dangerous incidents or conditions

18 Audit Programs Identify small problems before they become major problems Identify small problems before they become major problems Create a paper trial to safety Create a paper trial to safety Result in real cost savings Result in real cost savings

19 Conclusion How can we work better together to achieve our common goal: a clean and healthy environment?

20