AIR INNOVATIONS AIR INNOVATIONS CONFERENCECONFERENCE

August 11, 2004August 11, 2004

FACILITATING SEPSFACILITATING SEPS

AIR INNOVATIONS AIR INNOVATIONS CONFERENCECONFERENCE

August 11, 2004August 11, 2004

FACILITATING SEPSFACILITATING SEPS

What Is A Supplemental Environmental Project?

What Is A Supplemental Environmental Project?

Applied in the enforcement contextApplied in the enforcement context Voluntarily agreed to by the “violator”Voluntarily agreed to by the “violator” Over and above what is legally requiredOver and above what is legally required Requires an environmental benefitRequires an environmental benefit Must have a nexus with the violationMust have a nexus with the violation Results in penalty reductionResults in penalty reduction

Specific SEP PoliciesSpecific SEP Policies

EPA has developed detailed SEP policiesEPA has developed detailed SEP policies• Must improve public health or the environmentMust improve public health or the environment• Cannot be inconsistent with underlying statuteCannot be inconsistent with underlying statute• EPA cannot manage or control the SEP fundsEPA cannot manage or control the SEP funds• Type of project to be defined in the settlementType of project to be defined in the settlement

www.epa.gov/compliance/civil/program/sepswww.epa.gov/compliance/civil/program/seps Many State agencies have developed their own Many State agencies have developed their own

policies, as wellpolicies, as well

SEPs from a “Violator’s” ViewSEPs from a “Violator’s” View

A SEP is one way of doing good, while A SEP is one way of doing good, while reducing a penaltyreducing a penalty

SEPs require a nexus with the community SEPs require a nexus with the community affected by the violation, as such provide an affected by the violation, as such provide an opportunity for the violator to have a opportunity for the violator to have a positive community impactpositive community impact

SEPs from an Agency’s ViewSEPs from an Agency’s View

Opportunity to obtain an environmental or Opportunity to obtain an environmental or public health risk benefitpublic health risk benefit

Opportunity for innovative projectsOpportunity for innovative projects Opportunity to achieve a project with Opportunity to achieve a project with

minimal management/oversight costs minimal management/oversight costs AN OPPORTUNITY FOR FUNDINGAN OPPORTUNITY FOR FUNDING

The StEPP FoundationThe StEPP Foundation A national, 501(c)(3) not-for-profitA national, 501(c)(3) not-for-profit Established to identify viable clean energy, Established to identify viable clean energy,

energy efficiency and pollution prevention energy efficiency and pollution prevention projects meeting SEP criteriaprojects meeting SEP criteria

““StEPP” stands for Strategic Environmental StEPP” stands for Strategic Environmental Project PipelineProject Pipeline

StEPP offers a turnkey solution for funding StEPP offers a turnkey solution for funding sources looking for viable projectssources looking for viable projects

StEPP Foundation ServicesStEPP Foundation Services

Outreach to generate project ideas Outreach to generate project ideas Project identification and screeningProject identification and screening Project management and oversightProject management and oversight Management of project moniesManagement of project monies AccountabilityAccountability Collection and reporting of environmental metrics Collection and reporting of environmental metrics

for each project per dollar spentfor each project per dollar spent Follow up, public relations, project promotionFollow up, public relations, project promotion

The StEPP ProcessThe StEPP Process Written project concepts are submitted Written project concepts are submitted

online at a screening level of detailonline at a screening level of detail Qualifying projects are available in the Qualifying projects are available in the

Project PipelineProject Pipeline The Project Pipeline provides a selection of The Project Pipeline provides a selection of

fundable projectsfundable projects StEPP matches projects w/ negotiated StEPP matches projects w/ negotiated

criteria or provides a selection of projectscriteria or provides a selection of projects

Second Phase of the ProcessSecond Phase of the Process Once funding becomes available the applicant will Once funding becomes available the applicant will

be requested to submit a full proposalbe requested to submit a full proposal Geographic locationGeographic location Media/medium affectedMedia/medium affected Environmental category (e.g., REEE)Environmental category (e.g., REEE)

A committee made of a StEPP Board member, A committee made of a StEPP Board member, members of the community, experts will make its members of the community, experts will make its recommendation to the funding sourcerecommendation to the funding source

StEPP then manages the project thru completionStEPP then manages the project thru completion

ResultsResults

The result has been the funding of projects The result has been the funding of projects that directly benefit the communities around that directly benefit the communities around our facility – projects that we would not have our facility – projects that we would not have had an opportunity to fund if it were not for had an opportunity to fund if it were not for the StEPP Foundation. I strongly recommend the StEPP Foundation. I strongly recommend working with the StEPP Foundationworking with the StEPP Foundation

Dennis Creamer, ConocoPhillipsDennis Creamer, ConocoPhillips

REEE SEP ExamplesREEE SEP Examples A refiner in Colorado funded low interest A refiner in Colorado funded low interest

home and small business loans for REEEhome and small business loans for REEE Energy supplier settled air violations & Energy supplier settled air violations &

funded alternative energy projects including funded alternative energy projects including solar panel installations solar panel installations

Airport air violations settlement included Airport air violations settlement included replacement of traditional lights with replacement of traditional lights with energy efficient lightingenergy efficient lighting

Other ExamplesOther Examples

Solar panel installation for snow making at Solar panel installation for snow making at a ski areaa ski area

Settlement funding into an escrow account Settlement funding into an escrow account used to pay for wind power over 5 yearsused to pay for wind power over 5 years

University air violations resolution included University air violations resolution included improved insulation of campus buildings improved insulation of campus buildings

CONTACT US: www.steppfoundation.orgCONTACT US: www.steppfoundation.org