Handling NonCompliance and Audit Policy

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Handling Non-Complianceand Audit Policy

• Managing Non-Compliance
• Malcolm C. Weiss
• [phone]
• Jeffer, Mangels, Butler Marmaro LLP
• February 28, 2006
• 2688706 v3

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Todays Topics

• Compliance certification requirements
• Responsible official
• Penalties
• Handling non-compliance
• EPA Audit Policy

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Todays Topics

• Handling Non-Compliance
• EPA Audit Policy

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Determining Compliance
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What If You AreNot In Compliance?

• Disclosure (application)
• Alternative Operating Conditions (AOC) for Title
  V
• Variance / Order for Abatement for District
  Requirements
• Variance never recognized by EPA

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Disclosure

• Duty to supplement or correct your application
• Upon becoming aware of
• a lack or incorrect information
• Promptly submit supplementary facts or corrected
  information

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Some Districts Use AOC

• Alternative Operating Conditions (AOC)
• Granted by the Hearing Board
• Recognized if approved by EPA (45 day notice)
• Shields from enforcement of otherwise applicable
  requirements

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Alternative Operating Conditions

• Variance companion
• Does not cover federal rules, regulations or
  permit conditions (e.g., NSPS, NESHAPS, etc)
• Amends Title V permit

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Granting an AOC Requires

• Facility is or will be in violation
• Due to conditions beyond companys control
• Taking would be without corresponding air benefit
• Reduce excess emissions to the maximum extent
  feasible, etc.

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Hearing Board Order

• Order must include
• Emission limits
• Operational requirements for any source at the
  facility
• MRR
• Schedule of increments of progress
• Term

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Incentives for Self-Policing Discovery,Disclosur
e, Correction and Prevention ofViolations
Audit Policy
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EPAs Audit Policy
65 Fed. Reg. 19617 (April 11, 2000) 60 Fed. Reg.
66706 (Dec. 22, 1995)
Can reduce exposure to fines and penalties for
violations
If specified requirements are met
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EPAs Audit Policy

• Can
• Eliminate gravity-based, not economic benefit
  penalty component
• Reduce chances for criminal prosecution
• Avoid routine requests for audit reports
• If . . .

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EPAs Audit Policy

• Systematic discovery is through audit system or
  CMS
• Voluntary discovery, not from applicable
  requirements
• Prompt disclosure (21 days)
• Discovery and disclosure are independent of Govt
  or 3rd parties

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EPAs Audit Policy

• 5. Expeditiously remedy harm caused
• 6. Prevent recurrences
• 7. No repeat violations
• 8. Other violations excluded
• 9. Cooperation

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Facility Disclosures
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Making a Disclosure
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Environmental Audit Internet Resources
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Handling Non-Complianceand Audit Policy

• Managing Non-Compliance
• Malcolm C. Weiss
• Mweiss_at_jmbm.com
• [phone]
• Jeffer, Mangels, Butler Marmaro LLP
• February 28, 2006
• 2688706 v3