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Calculating Injunctive Relief/Complying Action Values Using an Approach that Does Not Conflict with the Approach Used for Calculating Environmental Benefit Values (4.10.2012)

Calculating Injunctive Relief/Complying Action Values Using an Approach that Does Not Conflict with the Approach Used for Calculating Environmental Benefit Values

Purpose:  Recently, inquiries have been received from Regions concerning calculations of injunctive relief/complying action values for enforcement cases.  The question posed is this:  for recurring expenses, should we calculate the value of the injunctive relief based on one year’s operation and maintenance (O&M) cost or should we calculate the value over more than one year, based on the lifetime of the equipment or facility or some other period? 

Our answer has been that the recurring cost injunctive relief value should be calculated for only a one year period.  To do otherwise would conflict with our approach to calculating “recurring” benefits associated with pollution reductions.  For calculating pollution reductions, we calculate the reductions that will be achieved over a one year period once the required controls have been put in place to bring the facility into compliance.  This is a conservative approach that assures that we are not over-stating the environmental benefits achieved through our enforcement actions.  Therefore, we want to be consistent and apply the same conservative approach when calculating injunctive relief value:  to calculate one year’s worth of the recurring (O&M) costs that will be incurred once all the required controls have been put into place.  The O&M value should be based on the marginal increase in costs associated with O&M for the new or improved pollution control equipment.

Data Entry:  The value of injunctive relief obtained through EPA enforcement cases is entered into ICIS in the Enforcement Actions module, on the final order, complying action/Injunctive Relief screen.

Data Retrieval:  The value of injunctive relief from EPA enforcement cases is retrieved using the “Inj Relf Penalty SEP Values – All Civil Cases” report posted in the Public Folders/Federal Enforcement and Compliance Reports/National Standard Reports folder in ICIS.

If you have questions about the revised FY2012 CCDS guidance or calculation tools, please contact Donna Inman, 202-564-2511, inman.donna@epa.gov.

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