The Senate Judiciary Committee held a hearing yesterday (5/21) on federal legislation that would provide companies that conduct voluntary self-audits with a qualified privilege (i.e., information obtained through such audits would be inadmissible in a federal or state enforcement actions based on federal law) and immunity (i.e., if violations are found, they could not give rise to an enforcement action if they are promptly corrected).  

Senators Hatfield (R-OR) and Brown (R-CO) testified on behalf of the legislation (S.582) which they both co-sponsored.  Both stated that S.582 would achieve greater environmental compliance by encouraging companies that find violations to come forward and correct them.  They also reiterated that the qualifications contained in the bill would ensure that "bad actors" do not take advantage of immunity and privilege provisions of the bill to escape environmental compliance and to shield information from the public.  Department of Justice officials, on the other hand, testifed that the bill would hinder law enforcement and interfere with the public's "right to know" of environmental violations.  Furthermore, they testified that the legislation was not necessary given EPA's new environmental audit policy.  

EPA issued its policy on environmental self-audits in December of 1995.  That policy allows EPA to reduce fines for companies that disclose violations and promptly correct them -- the policy does not provide full-scale immunity.  In addition, a number of condition have to be met before companies can avail themselves of the policy.  Because these conditions are so uncertain, many claim that they operate as a disincentive.  

Seventeen states have enacted some version of privilege and immunity legislation.  IPC supports the enactment of federal privilege and immunity legislation.  If you have any questions about this pending legislation, please contact Holly Lynch at IPC's Washington, D.C. office at (202) 638-6219 or at her e.mail address ([log in to unmask]).