This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0561 - Environmental Audit Improvement Program
L.R. NO. 2423-01
BILL NO. SB 561
SUBJECT: Environmental Audit Improvement Program
TYPE: Original
DATE: January 26, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
DNR Dedicated
Funds $0 $0 $0
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
None $0 $0 $0
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1996 FY 1997 FY 1998
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
The Office of the Attorney General and the Department of Health assume this
proposal would have no fiscal impact to their agencies.
The Department of Natural Resources (DNR) assumes this legislation, by
establishing an environmental audit improvement program which includes the
elimination of certain environmental penalties when conditions specified in
the bill are met, seeks to improve the environment by encouraging
environmental cleanups. The DNR stated they were unable to determine the
fiscal impact of this bill.
Because the universe of non-compliance with environmental laws is unknown,
the DNR cannot estimate the increased resources that would be necessary to
implement this legislation.
DNR would be required to receive applications from facilities wishing to
participate in the program. The DNR would be required to review and approve
or disapprove the compliance schedules.
The DNR would not be allowed 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 provided a facility corrects all violations according to the
approved compliance plan.
When determining whether to pursue a civil enforcement action, the proposal
requires the DNR determine whether an owner or operator acted in good faith,
including considering the owner or operator applied to and participated in
the program. 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 department is 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.
Oversight assumes there may be an unknown reduction in the revenue from
fines, penalties and court awards as a result of this proposal.
Oversight's research revealed other states have enacted similar legislation.
In Minnesota, two FTE were needed to implement the legislation which has
resulted in six environmental audit reports being received to date. Oregon
did not require any additional staff. Colorado reported the volume of
reports received was very low. Additional DNR staff could be considered if
the volume of compliance plans submitted for review is substantial.
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
shown as $0 impact.
FISCAL IMPACT - State Government FY 1997 FY 1998 FY 1999
(10 Mo.)
0 0 0
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
(10 Mo.)
0 0 0
DESCRIPTION
This proposal would create an incentive program in the Department of Natural
Resources to encourage good environmental management practices and voluntary
environmental audits. The DNR shall consider evidence of good management
practices, including voluntary environmental audits and voluntary disclosure
of environmental violations in determining penalties or enforcement actions.
To participate, an operator must apply to the Department, submit a dated
environmental audit report, commit to correct violations expeditiously, and
submit a 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. The Director 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 Department shall not initiate enforcement action for the term of the
approved compliance schedule, as long as the facility meets the schedule.
Information contained in an audit report maybe deemed closed pursuant to
Chapter 610, RSMo. The Department could seek civil and criminal penalties
for a facility which fails to meet the compliance schedule, which is found to
have violated the same environmental law within the three years prior to the
submission of the application, which caused serious harm, or which presents
an imminent threat to the public health or the environment. When determining
the amount of any penalty, the Department 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
Missouri Department of Natural Resources
Missouri Department of Health
Office of the Attorney General