Self-Auditing Policy
AQMD Prosecutor's Office

It is the policy of the Prosecutor’s Office to support companies which audit their own facilities and correct any AQMD rule violations in a timely manner.  Depending on the circumstances of the case, a penalty sought for a violation discovered through self-auditing and promptly reported to the AQMD should be significantly reduced or when appropriate, waived in order to encourage all facilities to implement an effective self-auditing program.

The Prosecutor’s Office’s self auditing penalty policy is founded on the basic principle that violations which are self-audited, disclosed and corrected warrant penalties that are consistently and predictably lower than penalties for violations which are discovered by the AQMD.

This penalty policy is structured to provide an incentive for facilities to self-audit so that violations will be promptly found and corrected, thereby minimizing any harm to the environment.

Eligibility (Return to top)

To determine whether a company is eligible for a reduced or waived penalty, the following criteria must be met:

1. The violation was discovered by the facility without any participation by the AQMD or other regulatory agency.

2. The violation was reported voluntarily by the facility, i.e. without any requirement to do so by law, regulation, permit or agreement.

3. The violation was reported promptly by the facility to appropriate AQMD staff, as soon as possible after discovery.

4. The violation was corrected promptly and effectively by the facility to reduce or eliminate all emissions and to prevent reoccurrence of the violation.

In all cases, the company or facility seeking the penalty waiver or reduction must provide sufficient documentation to the Prosecutor’s Office to prove eligibility for the application of this policy and must bear the burden of persuasion that waiver or reduction is appropriate.

There are circumstances under which a violation, even if discovered pursuant to self-auditing and voluntarily reported, would not be eligible for a reduced or waived penalty. To determine whether a company is ineligible for a reduced penalty, the following criteria must be considered:

1. The violation was the result of knowing, willful or intentional conduct or was the result of gross negligence.

2. The violation resulted in the emissions of any toxic air contaminant.

3. The violation created a public nuisance.

4. The company or facility has a prior history of the same violation.

Crafting the Penalty (Return to top)

Penalty Waiver

Under certain limited circumstances, it may be appropriate to waive a penalty. Penalty waivers should be used sparingly. Often, a SEP penalty may be a more appropriate alternative to a penalty waiver. Please note that under no circumstances may a penalty be waived without the prior approval of the District Prosecutor.

The following circumstances indicate that a penalty waiver may be appropriate:

1. The violation occurred despite the good faith efforts on the part of the facility to comply with all rules and regulations.

2. The facility has a history of good compliance and cooperation with the AQMD’s enforcement efforts.

3. The violation did not result in significant harm to the environment or any risk to public health.

4. The facility, upon discovery of the violation, took immediate and effective action under appropriate technical supervision to cease or remediate the violation and avoid repeated violations, and agrees in writing with the AQMD to take any further action necessary to address the violation in a manner that is acceptable to the AQMD.

5. The violation did not result in any economic gain or competitive advantage to the company or facility.

Penalty Reduction (Return to top)

In those cases where any of the above conditions set forth for penalty waiver have not been met, or where other circumstances indicate that a waiver is not warranted, the Prosecutor’s Office will consider all legal and factual circumstances to determine the extent to which a penalty associated with a violation discovered through self-auditing and voluntarily reported to the AQMD should be reduced.

As is always the case when seeking a penalty, the Prosecutor’s Office must consider all factors set forth in the California Health and Safety Code.

In all cases, the Prosecutor’s Office may seek to recover any economic benefit afforded to the company or facility as a result of the violation.

Questions and Further Information

If you have any questions about these policies or would like further information about the AQMD’s Prosecutor’s Office, please contact the Duty Deputy at (909) 396-3400 or send your question by e-mail to ddeputy@aqmd.gov.

Return to General Compliance Policy page.