A newly proposed rule by the U.S. Environmental Protection Agency (EPA) would give the agency the authority to cut into the paychecks of those who owe it a debt, such as a fine or penalty for an environmental violation. EPA would be allowed to garnish up to 15 percent of the “disposable pay” of delinquent debtors who do not work for the federal government via a process known as administrative wage garnishment – all without a court order.
Environmental rules are complex and difficult to understand. With fines of up to $37,500 per day per violation, civil penalties can reach into the millions of dollars. Under most programs, strict liability may impose daily penalties without regard to fault. And the regulated community often faces a long lag time between the inspection date and the date of enforcement action, which can rack up huge fines and make interpretation of the data more difficult. This precipitous garnishment of wages by EPA could quickly bankrupt small businesses or individual landowners. In one month’s time, a landowner could be liable for millions in penalties.
Even more troubling, recent reports show that EPA’s wage garnishment proposal would do little to bring about a cleaner environment or solve delinquency problems. According to the American Action Forum’s analysis of EPA’s enforcement data, a majority of EPA fines for individuals involve paperwork infractions – not environmental contamination – including fines for failing to file notifications or reports with EPA.
EPA is accepting public comment until Sept. 2 on this controversial change to its debt collection procedures, AGC plans to voice its opposition to EPA’s proposal. AGC will also be examining possibilities for Congressional action that would prohibit the EPA from implementing the wage garnishment rule.
Read more about this issue here.
Please share your perspectives on this matter with AGC’s Leah Pilconis at pilconisl@agc.org.
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