EPA asked to reassess how it computes fines

Abstract

Five major industry associations have asked the Environmental Protection Agency to reconsider how it computes penalties for environmental violations. The Chemical Manufacturers Association, the American Automobile Manufacturers Association, the American Forest & Paper Association, the Chamber of Commerce of the United States of America, and the National Association of Manufacturers have petitioned EPA to open an official rulemaking procedure to reassess use of its computer model. EPA has used this model since 1985 to calculate the economic benefits companies gain from violating environmental regulations. The trade associations claim the model has led to substantially distorted penalties. EPA assumes that any firm not in compliance with an environmental law reaps economic benefits as a result. The agency seeks to recover those benefits as part of the penalty assessed for the violation. Using a discount rate, the BEN model calculates the money saved by the company—the benefit of noncompliance— retroac...