Fiscal Note - SB 0125 - Environmental Audit Improvement Program
L.R. NO. 0680-01
BILL NO. SB 125
SUBJECT: Environmental Audit Program
TYPE: Original
DATE: February 10, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
State Funds $0 $0 $0
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 a $0 impact.
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
The Department of Natural Resources (DNR) is unable to determine the fiscal
impact of this bill. DNR assumes since this legislation, which includes
certain immunities, is being proposed, there must be a certain amount of
known non-compliance with environmental laws and regulations. However, the
department is not aware of these areas of non- compliance; otherwise, the
department would be working with these facilities to bring them into
compliance, and non-compliance would no longer be an issue. 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.
The DNR assumes they 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.
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 a $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
There may be an impact to small businesses who have an environmental audit
that discovers a violations, in that this proposal provides for immunity from
penalties in certain circumstances.
DESCRIPTION
This act establishes an environmental audit program within the Department of
Natural Resources for entities regulated by the Department. 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. In
reviewing the reasonableness of a compliance schedule, the Director 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 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.
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 Department 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 three years prior to the submission of the
application; 3) caused serious harm; or 4) presents an imminent threat to the
public health or the environment. A violation of an environmental law does
not include minor or paperwork violations.
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
Department Natural Resources
This Fiscal Note is not an official copy and should not be quoted or cited.