The EPA on Thursday backed up its new interim policy that encourages new owners to avoid major penalties by disclosing violations early by implementing a new Web-based system. The pilot project will allow regulated facilities nationwide to self-disclose environmental violations in a secure environment on the agency's website.

This electronic self-disclosure system, or eDisclosure, should according to the agency reduce transaction costs for companies by ensuring that each disclosure contains complete information.

Under the pilot, regulated facilities nationwide will be able to use eDisclosure to disclose violations of the Emergency Planning and Community Right-to-Know Act (for example, failure to submit toxic chemical release forms to the EPA's Toxic Release Inventory). Regulated facilities located in Arkansas, Louisiana, New Mexico, Oklahoma and Texas will be able to disclose violations of all environmental laws. Based on the results of the pilot, EPA will consider expanding eDisclosure to other states in the near future.

The EPA's recently revised audit policy provides incentives to companies that voluntarily discover, promptly disclose and correct and prevent future environmental violations. The agency may reduce or waive penalties for violations if the facility meets the conditions of the policy. However, the agency will not waive or reduce penalties for repeat violations, or violations that resulted in serious actual harm.

According to an agency release, since 1995, more than 3,500 companies have disclosed and resolved violations at nearly 10,000 facilities under the audit policy.