Item 14 Supplemental Environmental Projects SEP Policy Region

Item # 14 Supplemental Environmental Projects (SEP) Policy Region 8 Board Resolution No. R 8 -2019 -0074 Chuck Griffin Sr WRCE Region 8 Enforcement Coordinator October 25, 2019 1

Outline • • • Purpose for the SEP Policy Updates to the SEP Policy Implementation of SEP Policy History of SEPs/ECAs Key Provisions of the Draft Board Resolution to include the 2020 SEP/ECA List 2

The 2017 SEP Policy on Supplemental Environmental Projects Policy, (Res No. 2017 -0074) • Replaces Resolution No. 2009 -0013 Supplemental Environmental Projects • Became Effective May 3, 2018 The Policy establishes a framework to allow a settling party to fund one or more SEPs with a portion of their civil penalty from an administrative civil liability order 3

What is a SEP? Supplemental Environmental Projects (SEPs) or Enhance Compliance Actions (ECAs) are: • “an environmentally beneficial project that a person subject to an enforcement action • voluntarily agrees to undertake, • in settlement of the action and • to offset a portion of a civil penalty. ” Funding a SEP is not a primary goal of the Water Boards’ enforcement program, nor is it necessary that a SEP always be included in the settlement of an enforcement action 4

New Revisions to the SEP Policy Supports the Water Board’s Mission to include: • Promoting Human Right to Water (State Board Resolution No. 2016 -0010) • Encourages Projects that benefit Environmental Justice issues (PRC 71118) • Addresses Climate Change (State Board Resolution No. 2017 -0012) 5

New Revisions to the SEP Policy Supports the settlement of an enforcement action, so long as these projects meet criteria to ensure projects have: • • • An environmental value Further enforcement goals Takes into consideration environmental justice Supports other important policies of the Board Are subject to input and oversight by the Water Boards 6

New Revisions to the SEP Policy Anticipated Improvements from the Revisions: • Minimize Public Process to solicit potential SEP Projects benefitting disadvantage communities • Establishes an annual list of SEPs for settling parties to select from to be maintained by the State Water Board • Allows the amount of a SEP to be up to 50% of penalty – Increase amount to 75% for disadvantaged communities (DAC) or with justification up to 100% for DACs • Emphasizes staff to consider the relationship between the location of the violation and the location of the proposed SEP or the Nature of the violation to the SEP 7

Implementation of SEP Policy • Enforcement Actions that result in an Administrative Civil Liability (to include mandatory minimum penalties) • Discharger voluntarily agrees to take on a project • Discharger can choose from the list of approved SEP projects or • Propose their own project that meets the establish criteria 8

Implementation of SEP Policy • Terms and conditions for a SEP are incorporated into the Stipulated Order or Settlement Agreement 9

Implementation of SEP Policy Responsibility of Regional Board Staff: • Ensures the project conforms to project definition, time schedule, and budget • Ensures all legal guidelines are satisfied • Ensures the project fits within one or more of the designated categories • Ensures project solicitation and selection criteria are utilized • Ensures that all requirements for a settlement that include a SEP are satisfied • Ensures that all additional requirements for stipulated orders are satisfied 10

Funded SEPs • Quail Valley Offset the cost of abandoning Septic systems and connecting to Sanitary Sewer • Santa Ana Water Project Authority’s (SAWPA) Arundo and other invasive species removal within the Santa Ana River • SAWPA’s Santa Ana Sucker Surveys along the Santa Ana River • Upper Newport Bay Restoration/ Marine Education Project • Water Education Center/Discovery Science Center 11

State Board SEP Requirements • Provide a SEP Proposal Form • Provide a Guidance Document • Post an Approved Sep List 12

Region 8 Selection, Evaluation and Posting of SEPs • Regional Board staff have created its own SEP proposal form and guidance document • Regional Board staff has conducted outreach and will perform additional outreach • Regional Board staff shall inform interested parties that have submitted SEP proposals of the outcome of their SEP selection 13

SEP List Posting • Regional Board staff shall maintain and post on Region 8’s website a list of potential SEPs • Annually the SEP list will be forwarded to OE for inclusion in the Statewide SEP list 14

Resolution R 8 -2019 -0074 SEP Projects Progression • August 2019: Solicitation for SEP Projects sent out • October 2019: Regional Board staff Reviewed and Evaluated Proposed SEP Projects Incorporated into a SEP List • October 25, 2019: Request for Regional Board Approval of SEP Projects through Resolution 2019 -0074 15

Resolution R 8 -2019 -0074 • 2020 SEP/ECA List • Delegation for EO to Modify Application Materials and Evaluation Methodology • Delegation for EO to Add or Remove SEP/ECA Projects 16

Resolution R 8 -2019 -0074 Continued • Acknowledges need for Third Party Administrator • Acknowledges staff resources to manage SEP/ECA Projects 17

Staff Recommendation • Adopt Resolution R 8 -2019 -0074 – To include the 2020 SEP/ECA List 18

Questions? 19

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What is an Enhanced Compliance Action (ECA)? • Capital or Operational Improvement • Beyond that which is required by law • Separate from improvements needed to return to compliance • Benefits the Discharger • Usually reserved for Dischargers with financial hardship 21

Solicitation for New Projects State Board Office of Enforcement • The SEP proposal form and guidance document is available to the public on OE’s SEP webpage • OE will direct SEP proposals to the appropriate Regional Water Board or Division for further evaluation 22

Solicitation for New Projects • Each Regional Water Board may choose to have proposed SEPs – Pre-approved by the appropriate Water Board at an appropriate frequency (at a minimum annually) – Prioritized based on established criteria – Placed on a list without pre-approval or prioritization • Regional Water Boards may also compile an interested parties list, while they may not have specific projects on the list, could be contacted at the time of settlement for a SEP proposal 23