1. Enforcement Overview James Gradney Enforcement Division
Office of Compliance and Enforcement
Texas Commission on Environmental Quality
Environmental Trade Fair 2017
Good afternoon, Thank you for coming to this presentation on the enforcement process and Audit Privilege Act.
The first part of this presentation picks up after an investigation, record review, or, possibly a complaint has occurred. A determination has been made that the facts support pursuing formal enforcement.
In the event that you end up in enforcement knowing this process may be helpful to you.
We want to you to get through this process and the facility back into compliance with the rules as soon as possible.

2. OCE Mission Statement
“The Office of Compliance and Enforcement is dedicated to protecting human health and the environment by ensuring compliance with state and federal regulations. The office seeks to promote voluntary compliance through a comprehensive program of regional inspections, technical assistance, environmental monitoring, training and outreach. When enforcement is necessary, however, the office will take swift action that is fair, sensible and responsive to the needs of the citizens of Texas.”
Within the TCEQ - The Enforcement Division is within the Office of Compliance and Enforcement.
The Enforcement Division’s part in supporting the OCE Mission statement in protecting human health and the environment is to ensure compliance with state and federal regulations by taking swift action that is fair, sensible and responsive to the needs of the citizens of Texas.

3. What does that mean? Swift Action Fair, Sensible, and Responsive
Case assignment to mail out – 60 days
Achieve settlement or refer to the Litigation Division – 60 days
Fair, Sensible, and Responsive
Use of the Commission-approved Penalty Policies
Use the facts of the case and the applicable rules
Discuss the case with the Respondent
Respondent – entity responsible for the facility where the violations occurred; typically this is the owner or operator

4. Enforcement Process
This chart illustrates the flow of a case from Enforcement Action Referral through Commission or Executive Director Agenda.

5. Expedited Enforcement Process Overview
Within 14 days of assignment, Enforcement Action Referrals (EARs) are screened
Enforcement documents are drafted and mailed within 60 days of assignment
There are 60 days from after the proposed order is mailed to the Respondent reach a settlement agreement
If settlement is reached, the case is scheduled for Commission or Executive Director Agenda
If settlement is not reached, the case is referred to the Litigation Division (LD)
Enforcement Action Referrals (EARs) are reviewed for completeness and validity.
Discuss differences between ED and Commission Agenda

6. Screening The Enforcement Coordinator (EC) will:
Verify the correct Respondent name and Customer Reference Number/Regulated Entity Reference Number associations
Contact the Respondent for information regarding the Notice of Enforcement
Validate the violations contained in the referral
Discuss specific corrective actions (what has and what needs to be completed)
Review the facts of the case and the relevant rules and regulations
Respondent may already be working on returning to compliance, since the majority of folks are trying to do the right thing.

7. The Respondent will receive…
Enforcement Documents:
Cover letter with contact information and Financial Inability to Pay and Supplemental Environmental Project information (if applicable)
Agreed Order (1660 or Findings)
Penalty Calculation Worksheet (PCW)
Compliance History report
EC will discuss the enforcement documents with the Respondent

8. Initial Proposed Agreed Order
Most enforcement actions will follow the expedited enforcement process and result in an Agreed Order
Agreed Orders
With a denial of liability
Referred to as a The 74th Texas Legislature passed SB 1660 regarding Agreed Orders in 1995.
Includes a 20% deferral of the penalty
Without a denial of liability (Findings)
As defined by 30 Tex. Admin. Code §70.11
Does not include a 20% deferral
Laid out in the Texas Administrative Code ch. 70 for Enforcement
Most common instance of meeting the findings criteria is having 3 or more enforcement actions for the same violation in a five year period.

9. Penalty Calculation Worksheet
Penalties are assessed in accordance with the Commission’s Penalty Policy
Revision 2 Effective on September 1, 2002
Revision 4 Effective on April 1, 2014
All violations that occurred before Sept. 1, 2011, are subject to the second revision of the Penalty Policy (effective Sept. 1, 2002).
For violations that occurred on or after Sept. 1, 2011:
All Enforcement Action Referrals assigned on or after April 1, 2014, are subject to the fourth revision of the Penalty Policy.
All EARs assigned before April 1, 2014, are subject to the revision of the Penalty Policy that was applicable at the time the EAR was assigned.
The Penalty Policy was last revised on April 1, The changes brought the document up-to-date with practices that were already effective, including statutory changes that were made during the 82nd and 83rd legislative sessions, adding deferral criteria, reorganization to better align the policy with the penalty calculation worksheet, updating the implementation language, and other edits to improve clarification.

10. Penalty Calculation Worksheet
Factors that affect the penalty:
Major or minor source
Nature, gravity, and duration of violation
Compliance history
Culpability
Compliance status
Economic benefit
Penalty Calculation Worksheet (PCW) – reflection of the Commission’s Penalty Policy

11. Compliance History Report
The report will include:
The Compliance History Person Classification
Repeat Violator status
Number of written notices of violation
Number of final orders, court judgements, and consent decrees

12. 60 Day Settlement Period
Discussions between the TCEQ and the Respondent include:
Additional information that can impact the proposed order
Penalty calculation
Need for a settlement conference
Ability or willingness to pay the penalty
Interest in Supplemental Environmental Projects (SEPs)
Ability to comply with the technical requirements/ corrective actions and the applicable deadlines as written in the order
Desire to settle the case and avoid litigation

13. 60 Day Settlement Period
Respondents are strongly encouraged to read and re-read the entire order.
If the Respondent signs the order and pays the assessed penalty, then the Respondent is agreeing with the terms of the order.
The Respondent is required to completely and timely fulfill the terms of the order.
Additional enforcement actions including increased penalties may result if compliance is not achieved.

14. If We Have Achieved Settlement…
Notice of the Agreed Order is published in the Texas Register for a 30 day public comment period
Cases are scheduled for final approval
Commission agenda
Final Assessed Penalties greater than $7,500
Agreed Orders without a denial of liability
Special circumstances
Executive Director (ED) agenda
All other cases are delegated to the ED for adoption

15. Commission Agenda
The Respondent will be contacted before the scheduled Commission agenda:
19 days prior via letter
By the EC to determine status of the technical requirements
At Commission agenda, the orders will be presented in a group to the Commissioners.
If the Respondent wishes to speak at Commission agenda, please arrive early at TCEQ and sign-in.

16. What happens after the order is approved?
The effective date of an Order is the date it is signed by the Commission.
Order Compliance Team will track open technical requirements (TRs)
Financial Administration Division will monitor remaining payments
If the penalty has been paid and TRs have been completed, then the Respondent will receive a compliance letter
The order is effective for five years
The order will remain on the compliance history for this regulated entity for five years from the effective date of the order.

17. If Settlement Has Not Been Reached…
Case is referred to LD within 70 days after the initial settlement offer was mailed
Assigned LD attorney drafts an Executive Director’s Preliminary Report and Petition
If the Respondent does not respond, a Default Order is issued
The Respondent may request an administrative hearing
After the hearing, the State Office of Administrative Hearing judge presents a Proposal for Decision at Commission Agenda

18. Total Number of Administrative Orders Issued by Fiscal Year
As of March 31 this year, the Agency has issued 989 Orders.
This chart illustrates the total number of administrative orders issued by the Agency for each fiscal year: 1,826 for FY2012, 2,182 for FY2013, 1,708 for FY2014, 1,681 for FY2015, and 1,404 for FY2016.

19. Percent of Orders Issued by Media Type
This chart illustrates the percent of orders issued by media type for fiscal year 2016: 16% from Air, 27% from Waste, 52% from Water, and 5% from Multi-Media.

20. If compliance is still not achieved…
Referral to the Attorney General
Referral to the EPA
Criminal Prosecution
Emergency Orders

21. Need Technical Assistance?
TCEQ’s Small Business and Local Government Assistance Section (SBLGA) in the Environmental Assistance Division
Provides Technical Assistance with understanding the rules and meeting requirements
Can provide one-on-one help and resources

22. SBLGA Contact Info
Hotline Monday-Friday 8:00am-5:00pm

23. The Take Away
Communicate with the assigned Enforcement Coordinator throughout the enforcement process and ask for help (512)
Goal is compliance

24. James Gradney (512)239-6549 James.gradney@tceq.texas.gov
Questions?
James Gradney (512)