This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0567 - Establishes an environmental audit program within the Department of Natural Resources
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 2086-01
BILL NO. SB 567
SUBJECT: Environmental Audit Program
TYPE: Original
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS Net Effect on All State Funds Based on the February 27, 1995 vote of the Oversight Subcommittee on a similar proposal, all fiscal impact to state
and federal funds have been removed to reflect $0 impact. ESTIMATED NET EFFECT ON FEDERAL FUNDS Net Effect on All Federal Funds
FUND AFFECTED
FY 1998
FY 1999
FY 2000
Total Estimated
$0
$0
$0
FUND AFFECTED
FY 1998
FY 1999
FY 2000
Total Estimated
$0
$0
$0
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 1998 | FY 1999 | FY 2000 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 4 pages.
FISCAL ANALYSIS
ASSUMPTION
The Department of Natural Resources (DNR) assumes this proposal establishes an environmental audit improvement program which includes the elimination of certain environmental penalties when conditions specified in the bill are met. To qualify for the program, an owner or operator of a facility must submit an application to the DNR within 90 days of the completion of an environmental audit report. The application must include a signed commitment by the owner or operator to correct the violations as expeditiously as is reasonably practicable and a compliance plan and compliance schedule, if it will take more than 90 days to correct the violations
The DNR assumes the director of the DNR shall review the compliance schedules; approval or disapproval must be based on factors contained in section 640.048.3. The DNR shall defer for at least 90 days any civil or criminal enforcement action for voluntarily disclosed violations of environmental laws, if the application for acceptance in the environmental audit improvement program is complete. In addition, the DNR shall defer civil or criminal enforcement actions for voluntarily disclosed violations for the term of approved compliance schedules unless facilities fail to meet an interim performance date contained in the schedules.
Provided a facility corrects all violations according to the approved compliance plan, the DNR assumes they shall not impose or seek to impose punitive penalties in a civil case or monetary punitive penalties in a criminal case involving ordinary negligence against the owner or operator of the facility for the voluntarily disclosed violations of environmental laws.
The DNR must close the records of the application and the environmental audit reports as provided by section 610.021 RSMo during the time the owner or operator of the facility applies to and participates in the program.
In determining whether to pursue a civil enforcement action, the department shall determine whether an owner or operator acted in good faith, including consideration to the fact that the owner or operator applied to and participated in the program.
The DNR encourages increased environmental clean-up efforts; however, the department is unable to determine the fiscal impact of this bill. Since the department does not know the universe of non-compliance with environmental laws and regulations, the department cannot estimate the increased resources that would be necessary to implement this legislation. As staffing needs are determined the department will seek budget expansions for staff. Additional staff and resources will be needed to implement this program, and without a fee DNR assumes the funding source will be general revenue.
ASSUMPTION (continued)
The DNR currently evaluates the assessment of environmental penalties in cases where the non-compliance was discovered by means of voluntary disclosure or by the submission of environmental audits.
The DNR assumes they are unable to project revenues resulting from penalties and court awards. This proposed legislation seeks to reduce these penalties and court awards, therefore revenues related to these types of activities would be reduced. The department cannot project the number of cases and the amount of penalties that would be reduced under this legislation.
The Office of the Attorney General (AGO) the proposal would require them to hire expert witnesses to obtain environmental audits performed by owners, operators, or independent contractors. The AGO assumes since environmental audits are time consuming and expensive, the fiscal impact of this proposal would be substantial. The AGO has estimated expert witness fees to be from one to one and a quarter million dollars per year.
Based on the February 27, 1995 vote of the Oversight Subcommittee on a similar proposal, all fiscal impact to state and federal funds have been removed to reflect $0 impact.
| FISCAL IMPACT - State Government | FY 1998 | FY 1999 | FY 2000 |
| (10 Mo.) | |||
| $0 | $0 | $0 | |
| FISCAL IMPACT - Local Government | FY 1998 | FY 1999 | FY 2000 |
| (10 Mo.) | |||
| $0 | $0 | $0 | |
FISCAL IMPACT - Small Business
This proposal may impact small businesses who choose to obtain an environmental audit.
DESCRIPTION
This act establishes an environmental audit program within the Department of Natural Resources for entities regulated by the DNR. To participate, an operator must apply to the DNR submit a dated environmental audit report, commit to correct violations expeditiously, and submit a
DESCRIPTION (continued)
compliance plan. All minor violations shall be corrected within 90 days of the date of application and other violations shall be corrected within 270 days.
In reviewing the reasonableness of a compliance schedule, the DNR shall take into account information supplied by the regulated facility and information developed by the agency staff which may include information provided by the public. The DNR shall approve or disapprove of the compliance schedule based upon the nature and consequences of the violations, the economic circumstances of the facility, and the time required to implement pollution prevention strategies.
The DNR shall not initiate enforcement action for the term of the approved compliance schedule, as long as the facility meets the schedule. The time limitation within which prosecution of an offense or the filing of a private civil suit must be commenced shall start to run on the earliest day on which an enforcement action may be filed.
Pursuant to Chapter 610, RSMo, the information contained in an audit report may be closed by the Director for no more than 90 days unless closing such information is contrary to the interests of justice or the public safety or welfare. Records and information that may not be closed are detailed in subsection 7 of Section 640.048, RSMo.
The DNR could seek civil and criminal penalties for a facility which: 1) fails to meet the compliance schedule; 2) is found to have violated an environmental law within the past three years; 3) caused serious harm; or 4) presents an imminent threat to the public health or the environment. A minor or paperwork violation is not a violation of an environmental law.
When determining the amount of any penalty, the DNR shall consider the cost of corrective actions in relation to the economic benefit and the amount of savings accruing to the operator for his failure to comply with the law.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Natural Resources
Office of the Attorney General
Jeanne Jarrett, CPA
Director
January 12, 1998