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Telecommunications Provider Pays Over $1
Million in EPA Settlement
By Lynn
T. Manolopoulos
[November 2003]
EPA continues to pursue telecommunications companies that fail
to bring their facilities into compliance with environmental laws.
In October, the agency filed a complaint against Alltel Corporation
for violations of three environmental laws. The complaint sought
damages of up to $27,500 per day per violation for each switch or
cell tower. The resulting settlement was in excess of $1 million,
which does not include the expense of bringing the facilities into
compliance.
Environmental Compliance: Why should every telecommunications
company do an environmental audit?
Don’t let EPA catch you by surprise. Telecommunication emergency
power generators and back-up batteries are regulated by four federal
environmental laws: the Clean Air Act, the Clean Water Act, the
Resource Conservation and Recover Act, and the Emergency Planning
and Community Right-to-Know Act. EPA has recently assessed penalties
for environmental violations at thousands of facilities owned by
over 20 telecommunications companies.
Do you need to take action now, even if EPA has not come
knocking at your door?
Yes, because it may save you millions of dollars in penalties.
Many companies have audited their facilities, disclosed their violations
and then settled with EPA. As a result, EPA waived millions of dollars
in gravity-based penalties and required payment only of penalties
that reflected the company’s economic benefit from the non-compliance.
Companies that violated environmental laws and failed to self-disclose
paid huge gravity-based penalties. You will realize the significant
reduction in penalties only if you comply with EPA’s Audit
Policy when you report and correct violations.
Why does EPA’s Audit Policy provide for reduced penalties?
EPA wants to encourage systematic evaluation of environmental compliance
and self-reporting. To encourage self-reporting, the Agency developed
its Audit Policy, which sharply reduces or eliminates penalties
for companies that voluntarily identify, promptly disclose and correct
violations. EPA has very specific requirements that must be met
to qualify for settlement under the Audit Policy. Many states have
developed their own Audit Policies that provide benefits similar
to the EPA Audit Policy.
A Word of Caution! You should develop
a plan to report and correct violations before you determine if
you are in violation of environmental laws. The Audit Policy requires
that you disclose violations within 21 days from the date the violation
is “discovered.” You must then correct violations within
60 days. Given these deadlines, it is best to develop a plan before
you begin to evaluate your company’s compliance. EPA is also
willing to work with companies before an audit to develop inspection
and correction schedules suitable for multi-site audits. Without
a plan, you may not meet the Audit Policy deadlines and may be subject
to much greater penalties for any violations you discover.
For More Information
Davis Wright Tremaine has completed successful environmental audits
for telecommunications companies involving a variety of environmental
issues at facilities nationwide. We have developed positive working
relationships with EPA counsel and staff that oversee telecommunications
compliance. We can help you evaluate the status of your company’s
environmental compliance and develop an audit plan that works for
your company. We welcome the opportunity to meet with you and discuss
your individual legal needs and work out strategies to meet those
needs cost-effectively and efficiently.
Any questions about this Advisory should be directed
to:
Lynn
Manolopoulos, chair of DWT's Environmental Department, 425-646-6146,
lynnmanolopoulos@dwt.com
This Environmental Law Advisory is a publication
of the Environmental Law Department of Davis Wright Tremaine LLP.
Our purpose in publishing this Advisory is to inform our clients
and friends of recent developments in environmental law. It is not
intended, nor should it be used, as a substitute for specific legal
advice as legal counsel may only be given in response to inquiries
regarding particular situations.
Copyright © 2003, Davis Wright Tremaine
LLP.
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