Protecting Privilege, Recognizing the Risks of Criminal Liability and Reaping the Benefits of EPA's

F EATURES | ENVIRONMENTAL L AW S ECTIONProtecting Privilege, Recognizing the Risks of Criminal Liability and Reapingthe Benefits of EPA’s Audit Policyby Dan J. Jordanger and Christopher R. GrahamThe Audit Policy is designed to protect human health and n environmental audit can produce great rewards when the environment by encouraging regulated entities to dis-A planned and carried out properly. A good audit assessescover, disclose, correct and prevent violations of federalwhether a company’s operations comply with the law and5environmental law voluntarily. The Audit Policy providesoffers advice and recommendations on achieving complianceincentives—such as reduced penalties to entities that dis-in areas where the company may be falling short. Mostclose noncompliance discovered duringimportantly, when a company’san audit or through a compliance man-audit program meets the standardsagement system. Several industrial sectorsthat the U.S. Environmentaland individual companies have benefitedProtection Agency (“EPA”) has setfrom these incentives.forth in its “Audit Policy,” timelydisclosure of noncompliance discov-Relief from Penaltiesered during an audit can reduce theUnder the Audit Policy a company canpossible imposition of gravity-basedobtain complete relief from gravity-basedpenalties.6penalties if it discovers a violation as part7of a systematic compliance effort. RegularThe first step for clients and attorneysenvironmental audits are one type ...