![[logo] US EPA](https://webarchive.library.unt.edu/eot2008/20090507224235im_/http://www.epa.gov/epafiles/images/logo_epaseal.gif){kind=logo}
Supplemental Environmental Projects
Most federal actions against businesses or individuals for failure to comply with the environmental laws are resolved through settlement agreements. As part of a settlement, an alleged violator may voluntarily agree to undertake an environmentally beneficial project related to the violation in exchange for mitigation of the penalty to be paid. A Supplement Environmental Project (SEP) furthers EPA's goal of protecting and enhancing the public health and the environment. It does not include the activities a violator must take to return to compliance with the law.
SEP Policy
EPA issued the Final Supplemental Environmental Projects Policy (PDF) (SEPs Policy) (24 pp, 18K) on April 10, 1998.
Characteristics of SEPs
Because SEPs are part of an enforcement settlement, they must meet certain legal requirements.
- There must be a relationship between the underlying violation and the human health or environmental benefits that will result from the SEP.
- A SEP must improve, protect, or reduce risks to public health or the environment, although in some cases a SEP may, as a secondary matter, also provide the violator with certain benefits.
- The SEP must be undertaken in settlement of an enforcement action as a project that the violator is not otherwise legally required to perform.
SEP Guidelines
In addition, there are several guidelines that a SEP must meet.
- A project cannot be inconsistent with any provision of the underlying statute(s).
- A SEP must advance at least one of the objectives of the environmental statute that is the basis of the enforcement action.
- EPA must not play any role in managing or controlling funds used to perform a SEP.
- The type and scope of each project should be defined in the settlement document.
Categories of Acceptable SEPs:
EPA has set out eight categories of projects that can be acceptable SEPs. To qualify, a SEP must fit into at least one of the following categories:
- Public Health: SEPs may include examining residents in a community to determine if anyone has experienced any health problems because of the company's violations.
- Pollution Prevention: These SEPs involve changes so that the company no longer generates some form of pollution. For example, a company may make its operation more efficient so that it avoids making a hazardous waste along with its product.
- Pollution Reduction: These SEPs reduce the amount and/or danger presented by some form of pollution, often by providing better treatment and disposal of the pollutant.
- Environmental Restoration and Protection: These SEPs improve the condition of the land, air or water in the area damaged by the violation. For example, by purchasing land or developing conservation programs for the land, a company could protect a source of drinking water.
- Emergency Planning and Preparedness: These projects provide assistance to a responsible state or local emergency response or planning entity to enable these organizations to fulfill their obligations under the Emergency Planning and Community Right-to-Know Act (EPCRA.) Such assistance may include the purchase of computers and/or software, communication systems, chemical emission detection and inactivation equipment, HAZMAT equipment, or training. Cash donations to local or state emergency response organizations are not acceptable SEPs.
- Assessments and Audits: A violating company may agree to examine its operations to determine if it is causing any other pollution problems or can run its operations better to avoid violations in the future. These audits go well beyond standard business practice.
- Environmental Compliance Promotion: These are SEPs in which an alleged a violator provides training or technical support to other members of the regulated community to achieve, or go beyond, compliance with applicable environmental requirements. For example, the violator may train other companies on how to comply with the law.
- Other Types of Projects: Other acceptable SEPs would be those that have environment merit but do not fit within the categories listed above. These types of projects must be fully consistent with all other provisions of the SEP Policy and be approved by EPA.
Model Consent Agreement and Order including SEPs
As part of its policy and guidance on SEPs, EPA has developed a Model SEP Consent Agreement and Final Order (PDF) (CAFO) (8 pp, 29K) with provisions for including SEPs.
Case Settlements
Information about settlement-specific SEPs can be found
in the Enforcement Compliance History Online (ECHO)
database.
Opportunity to Submit SEP Ideas
EPA is collecting project ideas from interested parties for inclusion in our Project Ideas for Potential Supplemental Environmental Projects document. The Project Ideas document is compiled and maintained for use by Agency enforcement staff in future enforcement cases in which a SEP may be considered as part of settlement discussions. In an individual enforcement action, EPA staff may use the Project Ideas document as a resource, but there is no requirement to do so. If you would like to submit a project idea for inclusion in the Project Ideas for Potential Supplemental Environmental Projects document, complete our project idea consideration form.
Additional Information
SEPs Publications
SEPs Policies and Guidance
EPA Headquarters Contacts
For further information about SEPs or to have questions answered, direct your requests to Melissa Raack (raack.melissa@epa.gov or (202) 564-7039) or to Beth Cavalier (cavalier.beth@epa.gov or (202) 564-3271).
You will need Adobe Reader to view some of the files on this page. See EPA's PDF page to learn more.