supplemental environmental projects (seps)

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NATALIE BELL TEXAS COMMISSION ON ENVIRONMENTAL QUALITY TOTAL MAXIMUM DAILY LOAD PROGRAM SUPPLEMENTAL ENVIRONMENTAL PROJECTS (SEPs)

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SUPPLEMENTAL ENVIRONMENTAL PROJECTS (SEPs). Natalie Bell Texas Commission on Environmental Quality Total Maximum Daily Load Program. What is a SEP?. - PowerPoint PPT Presentation

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Page 1: SUPPLEMENTAL  ENVIRONMENTAL PROJECTS  (SEPs)

NATALIE BELLTEXAS COMMISSION ON ENVIRONMENTAL QUALITY

TOTAL MAXIMUM DAILY LOAD PROGRAM

SUPPLEMENTAL ENVIRONMENTAL PROJECTS

(SEPs)

Page 2: SUPPLEMENTAL  ENVIRONMENTAL PROJECTS  (SEPs)

What is a SEP?

SEP – A Supplemental Environmental Project (SEP) is an environmental enhancement project that offsets an administrative or civil penalty in an enforcement matter.

Through a SEP, a respondent in an enforcement matter can choose to invest penalty dollars in a project that improves the environment, rather than paying into the Texas General Revenue Fund.

Page 3: SUPPLEMENTAL  ENVIRONMENTAL PROJECTS  (SEPs)

Criteria for SEPs

To adequately meet the TCEQ’s standards, the project must…

Be environmentally beneficial- directly beneficial projects preferred

Be done as a result of a Settlement- may not precede enforcement action

Go beyond what is required for Compliance- can not include legal compliance requirements

Page 4: SUPPLEMENTAL  ENVIRONMENTAL PROJECTS  (SEPs)

Additional Criteria…

SEPs should match the environmental media of the violation Wastewater violation = Water quality improvement project

Projects should benefit the community in which the violation occurred Community = Trinity River Basin

Page 5: SUPPLEMENTAL  ENVIRONMENTAL PROJECTS  (SEPs)

Pre-Approved SEP Custom SEP

Third Party Operated: Performed by a 501(c)(3) non-profit or governmental organization

Respondent Operated

Respondent designs, proposes and implements a custom SEP

Must have a significant, enduring, and quantifiable benefit to the environment

Two Basic Types of SEPs

Page 6: SUPPLEMENTAL  ENVIRONMENTAL PROJECTS  (SEPs)

Examples of Third Party Administrators

Keep Texas BeautifulBayou Land Conservancy

Lower Colorado River AuthorityCity of Fort Worth

Southeast Texas Regional Planning Commission

The Trust for Public LandTexas State University

Jefferson CountyUniversity of Texas at Arlington

Page 7: SUPPLEMENTAL  ENVIRONMENTAL PROJECTS  (SEPs)

$$ What about the Money? $$

There are varied percentages of a penalty that can be offset through a SEP.

Offsets are based on:1. Types of business (for profit or not)2. Environmental benefit (direct,

indirect, or mixed )

Page 8: SUPPLEMENTAL  ENVIRONMENTAL PROJECTS  (SEPs)

Penalty percentage Offset

Not-for-profit & Government

Organizations

For-Profit Businesses

Up to 100% Up to 50%

Up to 50% Up to 50%

Up to 33% Up to 33%Indirect Benefit

MixedBenefit

Direct Benefit

Page 9: SUPPLEMENTAL  ENVIRONMENTAL PROJECTS  (SEPs)

Allowable Expenses

Direct costs that are reasonable and necessary for the proper performance of the project, such as:

• Monitoring equipment• Purchase of conservation easements• Disposal fees• Restoration/Tree Planting

Page 10: SUPPLEMENTAL  ENVIRONMENTAL PROJECTS  (SEPs)

Non-Allowable Expenses

Administrative costs (salaries, buildings, rent)

Organizational operating costs

Gratuities or refreshments for volunteers

Legal defense costs

Page 11: SUPPLEMENTAL  ENVIRONMENTAL PROJECTS  (SEPs)

SEP Performance Requirements

Contract or Agreed Order with TCEQProject timeline of 1-3 yearsEstimated project budgetSeparate bank account to receive SEP fundsQuarterly Progress ReportsCompletion of SEP and Final Report

Page 12: SUPPLEMENTAL  ENVIRONMENTAL PROJECTS  (SEPs)

FOR MORE INFORMATION

Becky CombsTCEQ SEP Attorney

[email protected]

www.tceq.texas.gov/legal/sep