The U.S. Environmental Protection Agency (EPA) recently launched a pilot program to allow companies to electronically self-disclose violations of environmental laws. The new voluntary program, called eDisclosure, is designed to speed the processing times and reduce transaction costs for voluntary disclosures of violations under the Emergency Planning and Community Right-to-Know Act (EPCRA). The program is part of EPA's Audit Policy, which provides reduced or waived penalties to companies that voluntarily disclose violations of environmental laws. The agency will not waive or reduce penalties for repeat violations or violations that resulted in serious actual harm.

Violators in EPA Region 6, comprising Arkansas, Louisiana, New Mexico, Oklahoma, and Texas, may also use the system to report violations of other environmental laws. Eventually, the agency plans to evaluate the program's performance, make revisions, and, if feasible, expand the program so regulated entities nationwide may self-report violations of all environmental laws under the Audit Policy.

The program will use the EPA's Central Data Exchange (CDX) as the point of entry for violators to submit data and complete electronic forms. EPA hopes that use of the electronic submission system will speed processing times and ensure submitted data are comprehensive. The agency also predicts the system will assure consistency in how disclosures are processed and reviewed.

According to the EPA, CDX provides users with the ability to submit data through one centralized point of access, fill out fewer forms and submit them electronically, receive agency confirmation when submissions are received, and submit data in a variety of formats.

While electronic reporting holds a great deal of promise, and the EPA's pilot is an encouraging step, it remains unclear how much effort is being placed behind it. EPA's numbers on participation have been somewhat inconsistent. According to an August agency release, since 1995, more than 3,500 companies have disclosed and resolved violations at nearly 10,000 facilities under the Audit Policy. However, almost a year earlier, an April 2007 memorandum claimed that under the Audit Policy, more than 4,000 entities had disclosed violations at more than 11,300 facilities through FY 2006. No performance measures for the pilot program have been disclosed. Reliable indicators will be essential to evaluating the success of EPA's effort.

EPA's 2006-2011 Strategic Plan, required under the Government Performance and Results Act, established a modest goal for the various compliance incentives programs, including the Audit Policy. The plan aims for a five percent increase in the number of participating facilities.

It remains unclear to what extent data collected by this pilot program will be made available to the public, if at all. EPA has expressed interest in speeding the process for companies to self-disclose violations, but the agency has not indicated if this will expedite the release of violations data to the public. EPA also has not released any information regarding the budget for the pilot program or what financial support might be available to it in subsequent years.