When it comes to advising our clients on manufacturing matters , we ’ re all in . exists for federal environmental regulatory issues .
22 MiMfg Magazine September 2017
Avoiding Regulatory Compliance Fines and Penalties with Environmental Audits
By Jeffrey V . Simsa • Gosling Czubak Engineering Sciences , Inc .
Manufacturers are , by nature of their business , subject to numerous environmental regulations . Administered by various local , state and federal agencies , these regulations can be complex and confusing . And , failure to comply can result in substantial fines and penalties assessed by regulatory agencies if a non-compliance issue is identified .
Part 148 of the Natural Resources and Environmental Protection Act ( NREPA ) provides a means for manufacturers in Michigan to identify , disclose and correct environmental issues , without the fear of fines and penalties being imposed , through the process of an environmental audit .
An environmental audit is defined as a voluntary internal evaluation to identity historical or other current non-compliance issues . Under a Part 148 environmental audit , manufacturers that conduct an audit can receive immunity from administrative , civil and certain criminal fines and penalties when they provide Notice of Intent to perform an audit , voluntarily disclose violations to the appropriate agencies , and promptly move forward to correct such violations . A similar process also
When it comes to advising our clients on manufacturing matters , we ’ re all in . exists for federal environmental regulatory issues .
An environmental audit is typically performed under each of four common scenarios : 1 . There are significant changes in environmental rules and / or regulations that impact a manufacturer ’ s processes and necessitates an evaluation of the impacts in detail
2 . A new company is formed , or purchases the assets of another
At Clark Hill , we understand industry-critical issues and help manufacturing clients successfully work through a myriad of challenges . Our proven experience and responsiveness help manufacturers keep their focus on their core business . With attorneys and professionals who have led manufacturing and engineering businesses , Clark Hill is a vital partner for manufacturing clients in :
• Labor & Employment Law
• Government Regulations
• Risk Management
• Real Estate
• Contract preparation
• Corporate Governance
• Succession Planning
• Finance
• Litigation
• Mergers business , and needs to be sure that the new business is compliant
3 . A new environmental manager is hired and wants to verify that the business ’ s previous activities were compliant
4 . As a matter of practice , a manufacturer performs an audit every three to five years
In any of these cases , an environmental audit can shed light on any potential areas of non-compliance and provide protection for the manufacturer while issues are addressed .
A thorough and complete environmental audit can pay for itself not only by avoiding fines and penalties , but also wasted time and money . Resources typically spent on administrative and legal costs related to consent orders or other legal requirements that come with regulatory agencies when issues are identified outside of an audit can instead be focused toward strengthening Michigan ’ s manufacturing economy . All things considered , that ’ s something worth investing in . 6
Jeffrey V . Simsa is senior project manager and a hydrogeologist with Gosling Czubak Engineering Sciences , Inc . He may be reached at 231-946-9191 and jvsimsa @ goslingczubak . com .
Gosling Czubak Engineering Sciences , Inc . is an MMA Associate member . Visit online : goslingczubak . com . clarkhill . com