SEPs: General Information

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What is a Supplemental Environmental Project?

A SEP is a project that prevents pollution, reduces the amount of pollution reaching the environment, enhances the quality of the environment, or contributes to public awareness of environmental matters. A respondent in an enforcement action may negotiate an agreement to perform an SEP in return for an offset of the administrative penalty. If the director of the TCEQ’s Litigation Division approves the inclusion of a particular SEP in an agreed order, it will be presented to the commission for consideration and final approval. Potential SEPs include such diverse projects as cleanups of abandoned illegal dump sites, community collections of household hazardous waste, and on-site pollution prevention projects that exceed regulatory requirements. SEPs that have a direct benefit allow a respondent to offset one dollar of its penalty for every dollar spent on the SEP.

What is the commission’s approach to SEPs?

Key features of the May 2006 guidance (TCEQ publication GI-352) are:

  • Compliance history. Repeat violators are less appropriate candidates, as are those who are not in compliance with previous agency orders.

  • Resolution of the violation. An SEP is appropriate where violations have been or are being corrected, the resulting pollution is cleaned up, and the violator has taken steps to ensure that the problem will not happen again.

  • Deterrence objectives. As a result of enforcement, violators and other regulated entities should be deterred from future noncompliance with environmental laws and regulations. Therefore, the negotiation of an SEP should not compromise deterrence, which is the main objective in the enforcement process.

  • Other factors as circumstances may require. (1) The ED may consider the violator’s good-faith participation in the settlement of the action and the degree of culpability of the violator for the violations at issue, in addition to other factors. (2) Whether the project meets state and regional environmental priorities. (3) Whether the project is in the same medium as the alleged violation. (4) Whether the project is in or near the community where the alleged violation occurred. (5) That the project not be an on-site project that benefits the alleged violator.

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Why should I consider a SEP?

The SEP program was developed as an approach to resolving enforcement actions and improving environmental quality. For respondents who wish to contribute directly to the environmental improvement of their communities, the SEP policy provides an alternative to payment of the full amount of an administrative penalty.

I am a respondent in an enforcement action. What is the process for getting my SEP approved?

If you are interested in negotiating a SEP, you may:

  • download the application forms for a respondent ( PDF  ·  Word )
    or
  • request a copy of the SEP guidance document, a SEP proposal guideline, and other materials from the SEP coordinator, a Litigation Division attorney, or Enforcement Division staff.

These documents explain the process further and give examples of SEPs that have been approved. After reviewing these materials, if you have additional questions, please contact the SEP Coordinator by phone at 512/239-3400 or by e-mail at olsadmin@tceq.state.tx.us. You are encouraged to begin discussing SEP possibilities early in the enforcement process. However, work on a proposed SEP should not commence until the commission has made its final determination. Send your completed application form by e-mail to the SEP coordinator at olsadmin@tceq.state.tx.us or by U.S. mail to:

SEP Coordinator, MC 175
Texas Commission on Environmental Quality
P.O. Box 13087
Austin, TX 787112-3087

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