Beneficial Environmental Projects- FAQs

What is a Beneficial Environmental Project (BEP)?

A project that provides for environmental mitigation which the Respondent is not otherwise legally required to perform, but which the Respondent agrees to undertake as a component of a Settlement Agreement stemming from any environmental violation(s) or Penalty Assessment.

When was the BEP rule promulgated? 

August 2000

When and how can the public comment on a proposed BEP?

When BEPs are proposed, they are made part of settlement agreements, and all settlement agreements require public notice. Therefore, the public can comment on any proposed settlement agreement which may or may not include BEPs.  All proposed settlement agreements are published in the newspaper, in general circulation, were the environmental violation(s) occurred.  There is a 45-day public comment period for all settlement agreements.  In addition, all proposed settlement agreements are placed on the Department?s public web page for public comment. 

How does the Department monitor the progress and completion of a BEP? 

Settlement Agreements containing Beneficial Environmental Projects require the Respondent to submit reports and schedules for the planning, implementation, and completion of such projects.  The Department monitors the progress of Beneficial Environmental Projects by routinely reviewing the required progress reports and conducting follow-up inspections, if necessary.

Do we effectively penalize a company when a BEP is used as an enforcement tool? 

Yes, the Department only agrees to BEPs when they are part of an overall settlement agreement that is in the best interest of the State.

Can the amount expended by a Respondent to perform a BEP be tax deductible? 

La. R. S. 30.2050.7(E)(1) states:

Notwithstanding the provisions of R.S. 30:2205, the secretary may enter into settlements of civil penalty assessments which allow the respondent to perform beneficial environmental projects or provide for the payment of a cash penalty to the state, or both.  Such settlements shall be considered a civil penalty for tax purposes.? 

Is the use of BEPs an effective part of the enforcement process?

Yes.  The legislature authorized the Department to accept BEPs as part of settlement of enforcement actions.  Settlement agreements with BEPs enable the Department to devote manpower toward more productive activities, rather than litigation, while achieving benefits to environment that are not otherwise required by law.

Does a BEP have to relate to the violation? 

Not necessarily.  But it does need to be related to improving the environment.