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Supplemental Environmental Project (SEP) definition

Definition:

Projects not required by law, that are voluntarily undertaken by a respondent in exchange for possible penalty mitigation.

 As part of some settlements, companies perform SEPs, which are projects not required by law, that are voluntarily undertaken by a respondent in exchange for possible penalty mitigation.  EPA may mitigate the civil penalty ultimately assessed as part of the settlement, when a respondent agrees to undertake a SEP.  EPA still collects a civil penalty as part of the settlement in accordance with the Agency’s 1998 SEP Policy, which calls for collecting the greater of 25% of the gravity component of the penalty, or 10% of the gravity, plus economic benefit.

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