[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]]

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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.

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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