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Module 2:Module 2:

Promoting Compliance with Promoting Compliance with Environmental Law Environmental Law

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Introduction to ComplianceIntroduction to Compliance

Lake Victoria Falls, Zimbabwe. Source: UNESCO.

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What is Compliance?What is Compliance?

Conformity or identity between an actor’s Conformity or identity between an actor’s behavior and a specified rulebehavior and a specified rule

Full implementation of environmental Full implementation of environmental requirementsrequirements

An essential indicator of good governance and An essential indicator of good governance and respect for the rule of law respect for the rule of law

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Who Ensures Compliance?Who Ensures Compliance?

National Environment Agency / MinistryNational Environment Agency / Ministry

Other national-level agencies Other national-level agencies

Other branches of governmentOther branches of government

Other levels of governmentOther levels of government

The regulated communityThe regulated community

Nongovernmental organizations / CitizensNongovernmental organizations / Citizens

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Ways to Involve the Public Ways to Involve the Public in Compliancein Compliance

Transparency of GovernmentTransparency of Government E.g., government should notify public that requirements E.g., government should notify public that requirements

are being formulatedare being formulated

Access to InformationAccess to Information E.g., public should be able to receive information from E.g., public should be able to receive information from

government on details of regulatory processgovernment on details of regulatory process

Opportunity for Participation Opportunity for Participation E.g., public should be able to report violators and/or file E.g., public should be able to report violators and/or file

citizen suits to force compliancecitizen suits to force compliance

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Producing ComplianceProducing Compliance

Two Principal Means:Two Principal Means:

Coercion (enforcement)Coercion (enforcement) PromotionPromotion

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Compliance TheoryCompliance Theory

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Reg

ulat

ed F

acili

ties

Less Degree of Compliance More

Creating an Atmosphere Favoring Creating an Atmosphere Favoring ComplianceCompliance

Noncompliant Compliant

Impressionable

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Reg

ulat

ed F

acili

ties

Less Degree of Compliance More

Noncompliant

Impressionable

Compliant

Creating an Atmosphere Favoring Creating an Atmosphere Favoring ComplianceCompliance

1010

Reg

ulat

ed F

acili

ties

Less Degree of Compliance More

Civil or Administrative Enforcement

Financial Incentives

Criminal ProsecutionRecognition

& Reward

Technical Assistance

Inspections

Publicity

Compliant

Impressionable

Noncompliant

Creating an Atmosphere Favoring Creating an Atmosphere Favoring ComplianceCompliance

1111

Financial Incentives

Reg

ulat

ed F

acili

ties

Less Degree of Compliance More

Recognition & Reward

Civil or Administrative Enforcement

Inspections

Technical Assistance

Publicity

Criminal Prosecution

Noncompliant

Impressionable

Compliant

Creating an Atmosphere Favoring Creating an Atmosphere Favoring ComplianceCompliance

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Compliance PromotionCompliance Promotion

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Compliance PromotionCompliance Promotion

Focuses on changing behavior by addressing obstacles Focuses on changing behavior by addressing obstacles to compliance to compliance

lack of knowledgelack of knowledge lack of technologylack of technology lack of will to complylack of will to comply economicseconomics moral valuesmoral values social valuessocial values

Remember that compliance promotion goes hand-in-Remember that compliance promotion goes hand-in-hand with enforcement. Enforcement creates a climate hand with enforcement. Enforcement creates a climate in which the regulated community has incentives to use in which the regulated community has incentives to use the opportunities provided by promotion.the opportunities provided by promotion.

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Compliance Promotion ToolsCompliance Promotion Tools

Capacity Building: Education & Technical Capacity Building: Education & Technical AssistanceAssistance

PublicityPublicity Building Public SupportBuilding Public Support Financial ArrangementsFinancial Arrangements Economic IncentivesEconomic Incentives

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Capacity Building:Capacity Building:Education & Technical AssistanceEducation & Technical Assistance

Provides information about the requirements and Provides information about the requirements and how to meet themhow to meet them

Provides assistance to help regulated facilities Provides assistance to help regulated facilities take the necessary steps to achieve compliancetake the necessary steps to achieve compliance

Particularly important when:Particularly important when: Community wants to comply, but does not have the Community wants to comply, but does not have the

capacity to do so yetcapacity to do so yet A new program is in its early stagesA new program is in its early stages Program requirements have changedProgram requirements have changed

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PublicityPublicity Publicize stories of facilities that have been Publicize stories of facilities that have been

particularly successful in complying or particularly successful in complying or particularly egregious in their non-complianceparticularly egregious in their non-compliance

Publicize successful enforcement actions Publicize successful enforcement actions against environmental non-complianceagainst environmental non-compliance Can deter future violations Can deter future violations

Can reinforce positive societal environmental Can reinforce positive societal environmental ethics and public support in favor of strong ethics and public support in favor of strong environmental enforcement environmental enforcement

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Building Public SupportBuilding Public Support

Citizens can:Citizens can: Create societal pressure for action Create societal pressure for action Help ensure enforcement programs receive fundsHelp ensure enforcement programs receive funds Be actively involved if the law provides a role for themBe actively involved if the law provides a role for them

It is vital that the public be involved in compliance!It is vital that the public be involved in compliance!

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Financial Arrangements Financial Arrangements

Help facilities overcome barrier of costHelp facilities overcome barrier of cost

Examples include:Examples include: Offset requirements Offset requirements - investors in a new facility must - investors in a new facility must

pay for modifications (e.g., updating technology) to pay for modifications (e.g., updating technology) to reduce or “offset” pollution at an existing facilityreduce or “offset” pollution at an existing facility

Loans Loans – institutions loaning money for new – institutions loaning money for new investments require a portion of the loan be applied to investments require a portion of the loan be applied to restoration or protection of environmental qualityrestoration or protection of environmental quality

Revolving Funds - Revolving Funds - providers of water services finance providers of water services finance their continuing operations with income derived from their continuing operations with income derived from sales to customerssales to customers

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Economic Incentives/DisincentivesEconomic Incentives/Disincentives FeesFees - Facility charged based on characteristics of its pollution (e.g., - Facility charged based on characteristics of its pollution (e.g.,

amount or toxicity of effluent). Fees should be high enough to deter amount or toxicity of effluent). Fees should be high enough to deter pollution.pollution.

Tax Credits Tax Credits – Reduced taxes for costs associated with improving – Reduced taxes for costs associated with improving environmental quality, e.g., installing pollution control equipmentenvironmental quality, e.g., installing pollution control equipment

Pollution Taxes Pollution Taxes – Taxes based on the volume and/or toxicity of – Taxes based on the volume and/or toxicity of effluents generatedeffluents generated

Subsidies Subsidies – Facilities that comply with requirements can receive a – Facilities that comply with requirements can receive a subsidy to help defray the cost of compliancesubsidy to help defray the cost of compliance

Bonuses for facility or operator Bonuses for facility or operator – For achieving better results than – For achieving better results than specified in permits, licenses, or regulationsspecified in permits, licenses, or regulations

Promotion point system Promotion point system – For senior managers in government-– For senior managers in government-owned facilities achieving complianceowned facilities achieving compliance

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Setting PrioritiesSetting Priorities

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Key Concepts for Priority SettingKey Concepts for Priority Setting

Balancing Objectives:Balancing Objectives: Protecting environmental quality and public healthProtecting environmental quality and public health Maximizing program resourcesMaximizing program resources

Apportioning resources between compliance Apportioning resources between compliance promotion and enforcement responsespromotion and enforcement responses

Setting general principles for how to respond to Setting general principles for how to respond to various types and degrees of violationsvarious types and degrees of violations

Targeting inspections to achieve deterrence and Targeting inspections to achieve deterrence and detect violationsdetect violations

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Considerations When Setting PrioritiesConsiderations When Setting Priorities

Ensure consistency and harmony among Ensure consistency and harmony among regional, provincial, and local prioritiesregional, provincial, and local priorities

Respond to issues of national concern in a Respond to issues of national concern in a coherent, coordinated mannercoherent, coordinated manner

Important to involve national, regional, Important to involve national, regional, provincial, and local governmentsprovincial, and local governments

Local authorities may have best knowledge of Local authorities may have best knowledge of local facilities and significant local threatslocal facilities and significant local threats

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Understanding the Regulated Understanding the Regulated CommunityCommunity

Regulated community may include: corporations, small Regulated community may include: corporations, small businesses, public agencies, state-owned facilities, businesses, public agencies, state-owned facilities, individualsindividuals

Accurate profile allows policymakers to target the Accurate profile allows policymakers to target the compliance strategy to maximize effectivenesscompliance strategy to maximize effectiveness

Gathering information about the community:Gathering information about the community: InventoriesInventories Permit or license applicationsPermit or license applications RegistrationRegistration Existing recordsExisting records OverflightsOverflights

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Focusing ResourcesFocusing Resources

A program with limited resources may choose to A program with limited resources may choose to focus on the small percentage of facilities that focus on the small percentage of facilities that cause most of the pollutioncause most of the pollution

Targeting certain facilities can have a broader Targeting certain facilities can have a broader deterrence effectdeterrence effect

Approaches to focusing resources:Approaches to focusing resources: Significant violators, type of industry, geographic Significant violators, type of industry, geographic

location, type of emission, compliance history, etc.location, type of emission, compliance history, etc.

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ExerciseExercise

Priority SettingPriority Setting

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Coming Up NextComing Up Next

Module 1:Module 1: Building a Legal Foundation for Good Water Building a Legal Foundation for Good Water GovernanceGovernance

Module 2:Module 2: Promoting Compliance with Environmental Promoting Compliance with Environmental LawsLaws

Module 3:Module 3: Responding to Violations of Environmental Responding to Violations of Environmental LawsLaws

Module 4:Module 4: Designing Performance Indicators for Designing Performance Indicators for Environmental Compliance and Enforcement ProgramsEnvironmental Compliance and Enforcement Programs