ENVIRONMENTAL SELF-AUDITING UNDER SCRUTINY

Current U.S. Environmental Protection Agency (EPA) policy on environmental self-auditing does not offer much protection against prosecution from self-identified problems, even when such problems would not have been identified in the absence of the self-audit, and even if the problems are rectified immediately. Therefore, it is understandable that some companies are not as aggressive as they could be when it comes to self-auditing. Recognizing this disincentive to desirable corporate behavior, about half the states have passed laws in the last 5 years allowing companies that agree to correct environmental violations to treat information from self-policing sources as confidential. Some of these laws also offer immunity from prosecution under certain circumstances. The EPA sees things much differently and has recently leaned on several states to eliminate or modify their environmental audit statutes. The agency allegedly has threatened to withdraw delegated state authorities under federal environmental laws if they do not comply and has even asked to be made a party to the development of state environmental auditing statutes in the future.