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EPA Updates Self-Disclosure (Audit) Policies

Free Webinar to Explain New Web-based ‘eDisclosure’ System

The U.S. Environmental Protection Agency (EPA) will hold webinars on June 10 and June 15 to describe its plan to modernize the implementation of its Audit Policy and Small Business Compliance Policy. The plan is called eDisclosure – a new centralized, web-based system for more efficiently receiving and processing violations disclosed to EPA under these policies.

EPA’s voluntary self-disclosure (audit) policies offer regulated entities the opportunity to self report, correct and prevent environmental violations with incentives, such as waived gravity-based civil penalties.  EPA has heard feedback from AGC and other industry groups that the policies are especially important for companies when they acquire a new business, for example, and evaluate the purchased business's compliance.  EPA had been deliberating updates to the policies for some time.  AGC reported on EPA’s decision back in 2012 to reduce its investment in the audit policies because the violations being reported weren't in “the highest priority enforcement areas for protecting human health and the environment.”  That left the future of EPA’s audit program uncertain – until last week when EPA announced its new, web-based system called eDisclosure.

Many states have similar audit policies for violations of state environmental laws.

When deciding whether to embark on an audit, questions to consider include: Might the company want to take advantage of available federal and state audit policies?  Are management and sufficient resources committed to addressing noncompliant items found during the audit?  Should the audit be structured so as to be protected by the attorney-client privilege?

Webinar Details and Registration

During the upcoming eDisclosure webinars, EPA will:

  • Describe EPA’s plan to streamline how disclosures are submitted and processed to save transaction costs, increase efficiency, and provide quicker responses;
  • Answer questions from the public on how eDisclosure will be designed and implemented; and
  • Provide an opportunity for interested stakeholders to share their views on this modernized approach.

If you would like to register to participate in EPA’s June 10 or June 15 webinar, click here.

For more information on EPA’s Audit Policy (“Incentives for Self-Policing: Discovery, Disclosure, Correction and Prevention of Violations”), click hereAnd for more information on EPA’s Small Business Compliance Policy, click here.