EPA Proposes Additions To Its Audit Policy For New Corporate Owners

The Environmental Protection Agency (“EPA”) has both clarified and proposed new policies designed to encourage corporate entities that have recently acquired regulated facilities to take advantage of benefits under the existing Audit Policy. EPA’s proposal is designed to encourage new corporate owners of recently acquired regulated facilities to voluntarily disclose environmental violations at these facilities and avoid certain penalties. EPA’s Audit Policy, and the evolving incentives for new owners, are important tools for companies involved in mergers or acquisitions (both buyers and sellers) to utilize to minimize environmental liabilities and maximize cost savings associated with business transactions.

This Client Advisory discusses the EPA’s recent proposed additions to its Audit Policy.