Supplemental Environmental Projects

A Supplement Environmental Project (SEP) is part of an enforcement settlement connected with the violation of an environmental statutory or regulatory requirement. As part of the enforcement settlement, a violator voluntarily agrees to undertake an environmentally beneficial project in exchange for a reduction in the penalty. A SEP furthers EPA's goal of protecting and enhancing the public health and the environment, and does not include the activities a violator must take to return to compliance with the law.

SEPs Policy

EPA issued the Final Supplemental Environmental Projects Policy (SEPs Policy) (PDF, 18.8 kb, 24 pages) on April 10, 1998.

Characteristics of SEPs

Because SEPs are part of an enforcement settlement, they must meet certain requirements. One important requirement is that a relationship between the SEP and the violation must exist.

In order for a project to be accepted as a SEP, it must meet certain criteria. SEPs must be environmentally beneficial. An acceptable SEP must improve, protect, or reduce risks to public health, or the environment at large. While in some cases a SEP may provide the alleged violator with certain benefits, there must be no doubt that the project primarily benefits the public health or the environment. SEPs are projects that are undertaken in settlement of an enforcement action and are projects that the alleged violator is not otherwise legally required to perform.

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 on of the objectives of the environmental statute that is the bases of the enforcement action. EPA must not play any role in managing or controlling funds used to perform a SEP, and the type and scope of each project should be defined in the settlement document. Most importantly, a project must have an adequate nexus, or connection, to the underlying violation.

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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:

1. Public Health: Such SEPs may include examining residents in a community to determine if anyone has experienced any health problems because of the company's violations.
   
   
2. 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.
   
   
3. 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.
   
   
4. 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.
   
   
5. 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.
   
   
6. 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.
   
   
7. Environmental Compliance Promotion: These are SEPs in which an alleged 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.
   
   

8. 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

EPA, as part of its policy and guidance on SEPs has developed a Model Consent Agreement and Final Order (CA/FO) (PDF, 29KB, 8 pages) with provisions for including SEPs.

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Case Settlements

Information about settlement-specific SEPs can be found in the summary information that we provide on the significant cases and settlements, 1998-present, and their consent decrees. (It needs to be remembered that SEPs are not a part of all settlements.)

Opportunity to Submit SEP Ideas

EPA is now collecting project ideas from interested parties for inclusion in a "SEP Library". The SEP Library is being compiled for use by Agency enforcement staff in future enforcement cases in which a Supplemental Environmental Project (SEP) may be considered as part of settlement discussions. In an individual enforcement action, EPA staff may use the SEP Library as a resource, but there is no requirement to do so. For additional information, please click on the link above, or contact the EPA Headquarters Contacts listed below.

Additional Information

SEPs Publications
SEPs Policies and Guidances

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)

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