[Federal Register Volume 63, Number 90 (Monday, May 11, 1998)] [Notices] [Pages 25855-25858] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 98-12428] [[Page 25855]] ======================================================================= ----------------------------------------------------------------------- ENVIRONMENTAL PROTECTION AGENCY [FRL-6012-4] Agency Information Collection Activities: Proposed Collection; Comment Request; Audit Policy Customer Satisfaction Survey AGENCY: Environmental Protection Agency (EPA). ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: In compliance with the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), this document announces that EPA is planning to submit the following proposed Information Collection Request (ICR) to the Office of Management and Budget (OMB): Agency Information Collection Activities: Proposed Collection; Comment Request; Audit Policy Customer Satisfaction Survey, EPA ICR Number 1859.01. Before submitting the ICR to OMB for review and approval, EPA is soliciting comments on specific aspects of the proposed information collection as described below. DATES: Comments must be submitted on or before July 10, 1998. ADDRESSES: U.S. E.P.A., Office of Enforcement and Compliance Assurance, 401 M Street, SW. (2201A), Audit Policy Survey, Washington, DC 20460. Interested parties may obtain a copy of the ICR by contacting the Audit Policy Docket, 202-564-2614. FOR FURTHER INFORMATION CONTACT: Brian Riedel, 202-564-4187 phone, 202- 501-0701 fax. SUPPLEMENTARY INFORMATION: Affected entities: Entities potentially affected by this action are those which submitted disclosures under EPA's ``Incentives for Self- Policing: Discovery, Disclosure, Correction and Prevention of Violations'' Policy (60 FR 66806, December 22, 1995 (Audit Policy)). Title: Agency Information Collection Activities: Proposed Collection; Comment Request; Audit Policy Customer Satisfaction Survey, EPA ICR No. 1859.01. Abstract: This information collection is proposed to implement the public commitment in EPA's Audit Policy to conduct a ``study of the effectiveness of the policy * * *'' by January 1999. (60 FR 66706, 60 FR 66712, part H(1) on Public Accountability). The proposed information collection is the Customer Satisfaction Survey set forth below. EPA's Audit Policy, effective in January of 1996, encourages self- policing by eliminating gravity-based penalties for federal environmental violations that are voluntarily discovered, disclosed, corrected and prevented under the terms of the Policy. Nor will EPA recommend criminal prosecution of regulated entities in these circumstances, although individuals remain liable for their own criminal conduct. The Policy includes safeguards to protect the public and the environment, such as excluding violations that may result in serious harm or risk, reflect repeated noncompliance or allow a company to realize an economic gain from its noncompliance. The Audit Policy is on the High Priority List of the President's Reinventing Environmental Regulations program. At the time of this document, approximately 273 regulated entities have disclosed violations at over 922 facilities, and EPA has settled cases/matters with 102 of these entities at 449 facilities. This ICR proposes to survey the entities that have disclosed violations under the Audit Policy. The survey, set forth below, generally consists of the ``customer satisfaction'' questions relating to the ``effectiveness'' of the Audit Policy in encouraging voluntary discovery, disclosure, correction and prevention of violations, and questions on how the Audit Policy and its application can be improved. OECA will use this information to evaluate and, where appropriate, revise the Audit Policy to better serve its goals in protecting health and the environment. Participation by the regulated entities in the brief survey is voluntary and anonymous. EPA will not possess the name of the respondent in connection with any answers provided. Any information claimed to be Confidential Business Information will be treated in accordance with EPA regulations at 40 CFR part 2. Generally, the Customer Satisfaction Survey will assist EPA in addressing the following issue areas cited in the Audit Policy (60 FR 66712): ``H. Public Accountability (1) Within 3 years of the effective date of this policy, EPA will complete a study of the effectiveness of the policy in encouraging: (a) Changes in compliance behavior within the regulated community, including improved compliance rates; (b) Prompt disclosure and correction of violations, including timely and accurate compliance with reporting requirements; (c) Corporate compliance programs that are successful in preventing violations, improving environmental performance and promoting public disclosure; (d) Consistency among state programs that provide incentives for voluntary compliance. EPA will make the study available to the public.'' An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. The OMB control numbers for EPA's regulations are listed in 40 CFR part 9 and 48 CFR Chapter 15. The EPA would like to solicit comments to: (i) Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (ii) Evaluate the accuracy of the agency's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; (iii) Enhance the quality, utility, and clarity of the information to be collected; and (iv) Minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses. Burden Statement: The total estimated average burden is estimated to be twenty to thirty minutes at a cost of $29 to $43. Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, or disclose or provide information to or for a Federal agency. This includes the time needed to review instructions; develop, acquire, install, and utilize technology and systems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with any previously applicable instructions and requirements; train personnel to be able to respond to a collection of information; search data sources; complete and review the collection of information; and transmit or otherwise disclose the information. It is estimated that approximately 60% to 70% or 164 to 191 of the 273 entities will respond to the survey request. [[Page 25856]] Dated: May 5, 1998. Nancy K. Stoner, Director, Office of Planning and Policy Analysis, Office of Enforcement and Compliance Assurance. Audit Policy Customer Satisfaction Survey EPA invites you to participate in this anonymous survey of companies that have disclosed environmental violations under the EPA Audit Policy. The Audit Policy, entitled ``Incentives for Self- Policing: Discovery, Disclosure, Correction and Prevention of Violations,'' appeared in the Federal Register on December 22, 1995 at 60 FR 66705. The intent of the Audit Policy is to encourage regulated entities to voluntarily discover, disclose, correct and prevent violations of federal environmental law. This survey will help EPA serve you better and will help EPA improve the Audit Policy. Average time to fill out the survey is estimated to be 20 to 30 minutes. Please return the completed survey in the enclosed envelope addressed to [a third party contractor] by ______. EPA will not possess the name of the respondent in connection with any answers provided. Please do not submit your name in the survey responses. Your participation is very much appreciated. Your response matters! If you have not yet received final determination under the Audit Policy, i.e. signed order or EPA letter indicating closure of case/ matter, please answer Questions 1-5 only. If you disclosed more than one type of violation, please generalize for all of your experiences. 1. How did you learn of EPA's Audit Policy? __Trade association __Seminar or conference __Federal Register __In-house or outside counsel __Other (please indicate) ---------------------------------------------------------------------- ---------------------------------------------------------------------- 2. Would you have disclosed the violation to EPA in the absence of an Audit Policy? __Yes __No __Don't know Please explain why or why not. ---------------------------------------------------------------------- ---------------------------------------------------------------------- 3. Did you have an environmental compliance auditing program before you heard of the Audit Policy? __Yes __No __Don't know Please very briefly describe the scope and frequency of your auditing activities before you heard of the Audit Policy: ---------------------------------------------------------------------- ---------------------------------------------------------------------- 4. In what ways, if any, did the Audit Policy encourage improvements in the extent of your auditing or due diligence activities? __Number of audits per facility __Number of facilities audited __Scope of environmental statutes or media covered __Scope of processes covered __Number of people involved __Other ---------------------------------------------------------------------- __Did not encourage 5. In what ways, if any, did the Audit Policy encourage improvements in the quality of your auditing or due diligence activities? __Qualifications of people involved __``Thoroughness'' of audit __Other ---------------------------------------------------------------------- __Did not encourage 6. How did you systematically discover the violation(s) disclosed? __Environmental audit __Not applicable __Due diligence efforts __Both If you checked ``Both,'' and characterized the discovery as through environmental auditing in you disclosure letter, please explain why: ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- 7. Why did you decide to disclose the violation(s) under the Audit Policy? Please check reason(s) and circle most important reason __To take proactive measures to find and address compliance problems __To limit liability __To avail yourself of the incentives under the Policy-penalty mitigation and/or non-recommendation of matter for criminal prosecution __To obtain certainty by relying on predictable enforcement response under Audit Policy __To obtain assurance from EPA that violation is being properly corrected / damage is properly remediated __To conduct and publicize disclosures as evidence of good corporate citizenry and awareness of need to protect public health and the environment __Other ---------------------------------------------------------------------- ---------------------------------------------------------------------- __Don't know 8. Hypothetically, if you had violations that you did not disclose under Audit Policy, why would you refrain from doing so? Please check reason(s) and circle most important reason __Unable to meet 10-day written disclosure condition __Uncertainty of enforcement response under Audit Policy __Definition of ``imminent and substantial endangerment'' is too vague __Belief that penalty representing the economic benefit gained from non-compliance will be too high __Belief that agency is not likely to discover the violation if it is corrected but not disclosed __Transactional costs of disclosing are too high __Desire to avoid disclosure to public of violations __Other reason ---------------------------------------------------------------------- ---------------------------------------------------------------------- __Don't know 9. If you circled the ``Uncertainty of enforcement response'' reason in the previous question, please check the sub-reason(s) and circle the most important sub-reason: __Process for calculating economic benefit component of penalty is not precise enough __Definition of ``repeat violations'' is unclear __Unclear whether entity would meet 10-day disclosure condition __Uncertain whether the audit would meet the standard for environmental audits __Uncertain whether compliance management system would meet due diligence standard __Other reason ---------------------------------------------------------------------- 10. What relief did you receive under the Audit Policy? __All penalties eliminated __All gravity-based penalties eliminated with economic benefit penalty assessment __75% of gravity-based penalties eliminated with no economic benefit penalty assessment __75% of gravity-based penalties eliminated with economic benefit penalty assessment __Penalties reduced under another authority because the disclosure did not meet the Audit Policy criteria __Penalties not reduced because the disclosure did not meet the criteria of any authority 11. How do you view EPA's response to your company's correction of the disclosed violation? __It was reasonable __It was too stringent Other------------------------------------------------------------------ Please explain--------------------------------------------------------- ---------------------------------------------------------------------- __Don't know 12. How do you view EPA's response to your company's efforts to prevent recurrence of the disclosed violation? __It was reasonable __It was too stringent Other------------------------------------------------------------------ Please explain--------------------------------------------------------- ---------------------------------------------------------------------- __Don't know 13. Were you satisfied with the outcome of your company's self- disclosure? __Yes __No __Somewhat __Don't know Please explain--------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- [[Page 25857]] 14.What compliance or environmental improvements, if any, were made possible by the incentives offered under the Audit Policy? ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- 15. What should EPA do to increase the regulated community's awareness of the Audit Policy? ---------------------------------------------------------------------- ---------------------------------------------------------------------- 16. How can EPA promote the regulated community's use of the Audit Policy? ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- 17. Would you use the Audit Policy again? __Yes, if applicable __No __Don't know 18. Would you recommend the Policy to clients/counterparts? __Yes __No __Don't know 19. Would you like to see any changes made to the terms of the Audit Policy? __Yes __No __Don't know Please provide any suggested changes here. ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- 20. What is your opinion about the amount of time it took EPA to respond to your self-disclosure? ---------------------------------------------------------------------- 21. What is your opinion about the amount of time it took EPA to resolve your case? ---------------------------------------------------------------------- 22. Do you have any other comments or suggestions about your experience with the Audit Policy? ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- 23. Are you aware of EPA's ``Final Policy on Compliance Incentives for Small Businesses,'' 61 FR 27984, June 3, 1996? __Yes __No The Small Business Policy is intended to promote environmental compliance among businesses with 100 or fewer employees through incentives to participate in compliance assistance programs or conduct environmental audits and to subsequently correct any violations discovered. 24. Would you consider using the Small Business Policy? __Yes __No __Not applicable because have >100 employees __Don't know Please explain why or why not. ---------------------------------------------------------------------- ---------------------------------------------------------------------- Thank you for your participation. Customer Satisfaction Survey on EPA's Audit Policy EPA invites you to participate in this anonymous survey of companies that have disclosed environmental violations under the EPA Audit Policy. The Audit Policy, entitled ``Incentives for Self- Policing: Discovery, Disclosure, Correction and Prevention of Violations,'' appeared in the Federal Register on December 22, 1995 at 60 FR 66705. The intent of the Audit Policy is to encourage regulated entities to voluntarily discover, disclose, correct and prevent violations of federal environmental law. This survey will help EPA serve you better and will help EPA improve the Audit Policy. Average time to fill out the survey is estimated to be 20 to 30 minutes. Please return the completed survey in the enclosed envelope addressed to [a third party contractor] by ______. Please do not submit your name in the survey responses. Your participation is very much appreciated. Your response matters! If you have not yet received final determination under the Audit Policy, i.e. signed order or EPA letter indicating closure of case/ matter, please answer Questions 1-5 only. If you disclosed more than one type of violation, please generalize for all of your experiences. 1. How did you learn of EPA's Audit Policy? __ Trade association ______Federal Register ____ Seminar or conference ________ In-house or outside counsel __________ Other (please indicate) ---------------------------------------------------------------------- ---------------------------------------------------------------------- 2. Would you have disclosed the violation to EPA in the absence of an Audit Policy? __ Yes __ No __ Don't know Please explain why or why not. ---------------------------------------------------------------------- ---------------------------------------------------------------------- 3. Did you have an environmental compliance auditing program before you heard of the Audit Policy? __Yes __ No __ Don't know Please very briefly describe the scope and frequency of your auditing activities before you heard of the Audit Policy: ---------------------------------------------------------------------- ---------------------------------------------------------------------- 4. In what ways, if any, did the Audit Policy encourage improvements in the extent of your auditing or due diligence activities? ______ Number of audits per facility ______ Number of facilities audited ______ Scope of environmental statutes or media covered ______ Scope of processes covered ______ Number of people involved ______ Other ---------------------------------------------------------------------- ______ Did not encourage 5. In what ways, if any, did the Audit Policy encourage improvements in the quality of your auditing or due diligence activities? ______ Qualifications of people involved ______ ``Thoroughness'' of audit ______ Other ---------------------------------------------------------------------- ______ Did not encourage (If you have not yet received final determination under the Audit Policy, please stop here.) ---------------------------------------------------------------------- 6. How did you systematically discover the violation(s) disclosed? ______ Environmental audit ______ Due diligence efforts ______ Both ______ Not applicable If you checked ``Both,'' and characterized the discovery as through environmental auditing in your disclosure letter, please explain why: ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- 7. Why did you decide to disclose the violation(s) under the Audit Policy? Please check reason(s) and circle the most important reason ______ To take proactive measures to find and address compliance problems ______ To limit liability ______ To avail yourself of the incentives under the Policy--penalty mitigation and/or non-recommendation of matter for criminal prosecution ______ To obtain certainty by relying on predictable enforcement response under Audit Policy ______ To obtain assurance from EPA that violation is being properly corrected/damage is properly remediated ______ To conduct and publicize disclosures as evidence of good corporate citizenry and awareness of need to protect public health and the environment ______ Other ---------------------------------------------------------------------- ---------------------------------------------------------------------- ______ Don't know 8. Hypothetically, if you had violations that you did not disclose under Audit Policy, why would you refrain from doing so? Please check reason(s) and circle the most important reason __Unable to meet 10-day written disclosure condition __ Uncertainty of enforcement response under Audit Policy __ Definition of ``imminent and substantial endangerment'' is too vague __ Belief that penalty representing the economic benefit gained from non-compliance will be too high __ Belief that agency is not likely to discover the violation if it is corrected but not disclosed ______ Transactional costs of disclosing are too high [[Page 25858]] ______ Desire to avoid disclosure to public of violations ______ Other reason ---------------------------------------------------------------------- ---------------------------------------------------------------------- ______ Don't know 9. If you circled the ``Uncertainty of enforcement response'' reason in the previous question, please check the sub-reason(s) and circle the most important sub-reason: ______ Process for calculating economic benefit component of penalty is not precise enough ______Definition of ``repeat violations'' is unclear ______ Unclear whether entity would meet 10-day disclosure condition ______ Uncertain whether the audit would meet the standard for environmental audits ______ Uncertain whether compliance management system would meet due diligence standard ______Other reason ---------------------------------------------------------------------- ---------------------------------------------------------------------- 10. What relief did you receive under the Audit Policy? ______All penalties eliminated ______ All gravity-based penalties eliminated with economic benefit penalty assessment ______ 75% of gravity-based penalties eliminated with no economic benefit penalty assessment ______ 75% of gravity-based penalties eliminated with economic benefit penalty assessment ______ Penalties reduced under another authority because the disclosure did not meet the Audit Policy criteria ______ Penalties not reduced because the disclosure did not meet the criteria of any authority 11. How do you view EPA's response to your company's correction of the disclosed violation? ______ It was reasonable ______ It was too stringent ---------------------------------------------------------------------- ---------------------------------------------------------------------- Please explain above or other response: ---------------------------------------------------------------------- ---------------------------------------------------------------------- ______ Don't know 12. How do you view EPA's response to your company's efforts to prevent recurrence of the disclosed violation? ______ It was reasonable ______ It was too stringent Please explain above or other response: ---------------------------------------------------------------------- ---------------------------------------------------------------------- ______ Don't know 13. Were you satisfied with the outcome of your company's self- disclosure? ______ Yes ______ No ______ Somewhat ______ Don't know Please explain:-------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- 14. What compliance or environmental improvements, if any, were made possible by the incentives offered under the Audit Policy? ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- 15. What, if anything, should EPA do to increase the regulated community's awareness of the Audit Policy? ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- 16. How can EPA promote the regulated community's use of the Audit Policy? ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- 17. Would you use the Audit Policy again? ______ Yes, if applicable ______ No ______ Don't know 18. Would you recommend the Policy to clients/counterparts? ______ Yes ______ No ______ Don't know 19. Would you like to see any changes made to the terms of the Audit Policy? ______ Yes ______ No ______ Don't know Please provide any suggested changes here. ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- 20. Do you have any other comments or suggestions about your experience with the Audit Policy? ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- 21. Are you aware of EPA's ``Final Policy on Compliance Incentives for Small Businesses,'' 61 FR 27984, June 3, 1996? ______ Yes ______ No The Small Business Policy is intended to promote environmental compliance among businesses with 100 or fewer employees through incentives to participate in compliance assistance programs or conduct environmental audits and to subsequently correct any violations discovered. 22. Would you consider using the Small Business Policy? ______ Yes ______ No ______ Not applicable because have >100 employees ______ Don't know Please explain why or why not. ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- Thank you for your participation. [FR Doc. 98-12428 Filed 5-8-98; 8:45 am] BILLING CODE 6560-50-P