Client Alert
Pamela E. Barker
share this page:
Last month, the United States Environmental Protection Agency (the “U.S. EPA”) released a temporary enforcement discretion policy in response to the COVID-19 pandemic (the “COVID-19 Policy”). Under the COVID-19 Policy, if regulated entities take certain steps, the U.S. EPA will exercise enforcement discretion for environmental compliance requirements, such as routine monitoring and reporting under environmental laws enforced by the U.S. EPA. For noncompliance that occurs while the policy is in effect and results from the COVID-19 pandemic, the COVID-19 Policy will apply in lieu of an otherwise applicable enforcement response policy. The COVID-19 policy applies retroactively to March 13, 2020 and does not currently contain an end date. The U.S. EPA indicated that it will assess the need for and the scope of the COVID-19 Policy on a regular basis and post an online notice at least seven days prior to terminating the COVID-19 Policy.
Key aspects of the COVID-19 Policy are as follows:
The U.S. EPA’s enforcement discretion is conditioned on entities making every effort to comply with their environmental compliance obligations. If compliance is not “reasonably practicable,” facilities should take the following steps:
Adjustments in Compliance Monitoring and Reporting Violations
The U.S. EPA recognizes that business interruptions resulting from COVID-19 may impede the ability of regulated entities to perform certain routine compliance monitoring, testing, reporting, training, or certification. The U.S. EPA advises entities to use existing procedures to report noncompliance with such routine activities. Where there is no applicable procedure, or reporting is not reasonably practicable due to the pandemic, regulated entities should maintain the information internally so that it can be made available upon request by the U.S. EPA or an applicable state. The U.S. EPA does not expect to seek penalties for violations of routine compliance monitoring, integrity testing, sampling, laboratory analysis, training and reporting, or certification obligations where the U.S. EPA agrees that COVID-19 was the cause of the noncompliance and the entity provides requested documentation.
The U.S. EPA expects entities to return to full compliance going forward once the COVID-19 Policy is no longer in effect. The U.S. EPA does not plan to ask facilities to “catch-up” on missed monitoring or reporting, as long as the underlying requirement applies to intervals of less than three months. For other monitoring reports, such as those required on a bi-annual or annual basis, the U.S. EPA expects facilities to take reasonable measures to resume compliance activities as soon as possible, such as submitting late reports.
Additionally, the U.S. EPA acknowledges the difficulty in obtaining a “wet” signature from a responsible official for filings and submissions, and during the policy period, the U.S. EPA will accept digital and other electronic signatures.
The COVID-19 Policy also states that the U.S. EPA intends to treat routine compliance monitoring and reporting under settlement agreements and consent decrees in a similar fashion as under permits. Parties subject to the settlement agreements and consent decrees should use the notice provisions in those documents (including the force majeure provision, as applicable) to provide notice of noncompliance.
Consent decrees are court orders, and while the U.S. EPA and the Department of Justice (“DOJ”) will coordinate the exercise of enforcement discretion with regard to stipulated penalties for routine compliane obligations, courts may not agree and may exercise their own jurisdictional authority, including enforcement of penalties. Thus, a party that is subject to a consent decree should be cautious when relying on the COVID-19 Policy.
Routine Monitoring and Reporting Examples
The COVID-19 Policy cites numerous examples of routine monitoring and reporting obligations as being subject to its purview, including the following:
Clean Air Act
Clean Water Act
In addition to discussing discretion regarding compliance and violations, the COVID-19 Policy includes guidance on a few specific operational scenarios, including:
The COVID-19 Policy does not apply to the following:
Further, the U.S. EPA clarifies that nothing in the COVID-19 Policy relieves any entity from the responsibility to prevent, respond to, and report accidental releases of oil or any hazardous substance or chemical, hazardous waste, or other pollutants. Additionally, the COVID-19 Policy applies to the U.S. EPA’s actions only and does not bind states or tribes.
The COVID-19 Policy should help to alleviate certain regulatory requirements. While the U.S. EPA exercises its enforcement discretion discussed in this alert, companies should continue to make their best efforts at compliance and should use existing procedures to report noncompliance under permits or applicable regulations, or else maintain the information internally if no such notification procedure is applicable.
To stay abreast of the emerging legal issues raised by the coronavirus pandemic, Lewis Rice has formed a COVID-19 Task Force, which brings together subject matter authorities from various practice areas within the Firm who stand ready to assist our clients as they navigate these complex challenges. Our attorneys are closely monitoring these developments as they occur and will make regular updates to our COVID-19 Resource Center. If you have legal questions related to the U.S. EPA’s COVID-19 Policy, please reach out to the author above.