SENATE, No. 384

 

STATE OF NEW JERSEY

 

Introduced Pending Technical Review by Legislative Counsel

 

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

 

 

By Senators McNAMARA and MacINNES

 

 

An Act concerning environmental audits and supplementing Title 2A of the New Jersey Statutes and Title 13 of the Revised Statutes.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. Sections 1 through 10 of this act shall be known and may be cited as the "Voluntary Environmental Auditing Promotion Act."

 

    2. The Legislature finds and declares that it is in the public interest for businesses in this State that are subject to environmental regulation to conduct internal reviews of their operations and practices with the intent of discovering and correcting conditions that may lead to a violation of environmental laws before such violations occur; that the primary goal of environmental enforcement policies is to promote compliance and not to punish the violator; that a legal structure that promotes self-policing programs can achieve improved compliance effectively at a low cost to the State and business; and that environmental audits, when properly conducted and implemented, result not only in better compliance with environmental laws, but in the adoption of procedures and policies by businesses that exceed minimum legal requirements, and that save business money by lowering costs and reducing potential liabilities.

    The Legislature therefore determines that it is the public policy of the State to fashion an overall statutory and regulatory scheme, by the use of incentives and the elimination of disincentives, to encourage regulated businesses to voluntarily participate in an environmental self audit and voluntary corrective action program and that it is appropriate that a safe harbor from civil and administrative penalties be established for violations discovered as a result of a voluntary environmental audit.

 

    3. As used in sections 1 through 10 of P.L. , c. (C. )(before the Legislature as this bill):

    "Department" means the Department of Environmental Protection.

    "Enforcement action" means any administrative order issued pursuant to statute or any civil action.

    "Enforcement agency" means the State and any of its departments, offices, bureaus, agencies, or authorities, and any political subdivision of the State, including local health agencies or authorities, empowered with the ability to enforce an environmental law in its own name or on behalf of the State.

    "Environmental audit" means a voluntary, internal evaluation of one or more facilities or an activity at one or more facilities regulated under any federal, State, or local environmental law, or of management systems related to that facility or activity, that is designed to identify and prevent noncompliance and to improve compliance with statutory or regulatory requirements, and that is conducted by the owner or operator of the facility or facilities, by the owner's or operator's employees, or by independent contractors. An environmental audit shall substantially include at least the following elements:

    (1) A written policy articulating upper management support for an environmental auditing program, and for compliance with facility policies, permit requirements and statutes and regulations, as well as a commitment to follow up on, correct and prevent recurrence of identified problems;

    (2) Articulated objectives, scope, frequency, and dedicated resources;

    (3) The auditing function shall be sufficiently free of interference with inquiry and observation or fear of potential retribution to ensure objectivity;

    (4) Explicit written audit procedures; and

    (5) Specific procedures to promptly prepare candid and appropriate written reports on audit findings, corrective actions, schedules for implementation, and for reporting of violations.

    "Environmental audit report" means a set of documents, each labeled "Environmental Audit Report" and prepared as part of an environmental audit, and which shall include a statement setting forth the scope of the environmental audit, a certified index identifying the documents in the report, and the calender dates on which the environmental audit was initiated and completed. The environmental audit report may include exhibits, appendices, conclusions, and recommendations; memoranda and documents analyzing part or all of the audit report and discussing implementation issues; an audit implementation plan that addresses correcting past noncompliance, improving current compliance, and preventing future noncompliance; documentation associated with the tracking of corrective actions for non-compliance audit findings; and supporting information including field notes and records of observations, findings, suggestions, conclusions, drafts, memoranda, drawings, photographs, environmental sampling results, computer-generated or electronically recorded information, maps, charts, graphs, and surveys, provided, however, that the supporting information is collected or developed for the purpose of and in the course of an environmental audit.

    "Regulated entity" means any person, corporation, company, partnership, or other business entity, and any governmental entity including a federal, State, and local government facility, regulated under the State environmental laws that the department administers.

    "Voluntary" means not required by statute, regulation, permit, order, or agreement.

 

    4. a. An enforcement agency shall not seek to obtain an environmental audit report except when: (1) the enforcement agency has reasonable grounds to believe a violation of an environmental law has been committed; (2) the violation may result in serious harm to human health or the environment; (3) the enforcement agency made the determination in paragraph (1) of this subsection through means independent of an environmental audit report; (4) a substantial need exists to obtain the environmental audit report; and (5) the information sought to be obtained is either not otherwise available to the enforcement agency or the enforcement agency is unable to obtain the substantial equivalent of the information by any means without incurring unreasonable cost or delay. If the conditions of paragraphs (1), (2), (3), (4), and (5) of this subsection are met, the enforcement agency may seek to obtain those portions of the environmental audit report that are relevant to the specific violation in the manner provided in this section.

    b. If the conditions of paragraphs (1), (2), (3), (4), and (5) of subsection a. of this section are met, an enforcement agency may seek to obtain portions of an environmental audit report pursuant to an investigation through the issuance of an administrative subpoena signed by the commissioner or through the issuance of an administrative search warrant issued by a court of competent jurisdiction.

    c. If the conditions of paragraphs (1), (2), (3), (4), and (5) of subsection a. of this section are met, an enforcement agency may seek to obtain portions of an environmental audit report pursuant to an enforcement action through discovery by an enforcement agency in a civil enforcement action or administrative enforcement action, only in accordance with law and the rules of procedure and evidence applicable to the administrative or civil proceeding.

    d. Those portions of an environmental audit report obtained pursuant to this section shall be admissible as evidence in a civil enforcement action or a civil administrative enforcement action to the extent permitted by law and the rules of procedure and evidence applicable to the administrative or civil proceeding.

    e. Nothing in this section is intended or shall be construed to in any way modify, limit or impair the authority of an enforcement agency to seek, obtain, or admit into evidence environmental audit reports for purposes of a criminal investigation or prosecution pursuant to grand jury subpoena, search warrant issued by a court of competent jurisdiction, and applicable rules of discovery, procedure, and evidence. Any portion of an environmental audit report obtained pursuant to a grand jury subpoena may not be disclosed to an enforcement agency for the purposes of a civil action unless the grand jury returns an indictment.

    f. The limitations imposed on enforcement agencies in seeking to obtain environmental audit reports pursuant to this section shall not apply to:

    (1) Documents, communications, data, reports, or other information required to be collected, developed, maintained, reported, or made available to a governmental entity pursuant to any federal, State or local law, ordinance, regulation, permit or order;

    (2) Information obtained by observation, sampling, or monitoring by any enforcement agency;

    (3) Information obtained from a source independent of the environmental audit;

    (4) Documents existing prior to the commencement of and independent of the environmental audit;

    (5) Documents prepared subsequent to the completion of and independent of the environmental audit; and

    (6) The underlying factual information upon which an environmental audit report is based.

 

    5. In setting priorities for nonmandatory inspections pursuant to any law administered or enforced by an enforcement agency, the enforcement agency shall give a lower priority to any regulated entity at which an environmental audit is conducted.

 

    6. a. The department, in consultation with the Department of Law and Public Safety, shall establish by rule a policy whereby, in determining whether or not to impose or seek to have imposed an administrative or civil penalty, and in determining the amount of any such penalty, the existence of an environmental audit serves as a mitigating factor. The department may propose that a regulated entity conduct an environmental audit in administrative consent orders or in other settlement negotiations where an environmental audit could provide a remedy for identified problems and reduce the likelihood of similar problems recurring in the future.

    b. The Department of Law and Public Safety may maintain its current policy guideline for State and county prosecutors in the use of their discretion in pursuing criminal enforcement of any environmental law whereby the existence of an environmental auditing program is a mitigating factor.

 

    7. a. If a regulated entity discovers a violation of an environmental law, regulation, or permit as a result of an environmental audit the enforcement agency shall waive civil and civil administrative penalties for that violation, provided the following conditions are satisfied:

    (1) The violation is discovered by a regulated entity through an environmental audit;

    (2) The regulated entity voluntarily discloses the violation to the department and any other relevant enforcement agency in writing within a reasonable time upon discovery of the violation. Disclosure of a violation shall include, at a minimum, all information available to the regulated entity at the time disclosure is made concerning the cause of the violation, and any actual harm to human health or the environment, or imminent and substantial threat to human health and safety caused by the violation. Disclosure shall not be considered voluntary unless it occurs prior to: (a) the discovery or knowledge of the violation by the department; (b) the commencement of a judicial or administrative enforcement action by the State, the United States Environmental Protection Agency, or an enforcement agency acting on behalf of the department; (c) the regulated entity's knowledge that the discovery of the violation by a regulatory agency or a third party was imminent;

    (3) The regulated entity corrected the condition or activity constituting the violation and achieves compliance within a reasonable period of time following the discovery of the violation. If compliance cannot be achieved within 60 days following its discovery, the violation shall be corrected in accordance with a reasonable schedule approved or ordered by the department;

    (4) The regulated entity expeditiously remedies any condition that has created or may create an imminent and substantial endangerment to human health, safety or natural resources;

    (5) The regulated entity takes appropriate, documented, steps to prevent the recurrence of the violation, and implements appropriate measures to mitigate any harm caused by the violation; and

    (6) The regulated entity cooperates with the department or other relevant enforcement agency in the further investigation of the violation, including the department's efforts to ensure that the condition or activity constituting the violation is properly corrected, and any damage caused by the violation is fully remediated.

    b. If a regulated entity discovers a violation of an environmental law, regulation, or permit, as a result of an environmental audit, and most but not all of the conditions listed in subsection a. of this section are satisfied, the enforcement agency may reduce the amount of the civil administrative penalty that would otherwise be assessed, or civil penalty that would otherwise be sought, or may determine not to assess or seek to impose a civil administrative penalty or civil penalty. The enforcement agency may, in its discretion, on a case-by-case basis, determine whether to impose or seek any penalty or the amount of the penalty reduction that shall be appropriate as provided in this subsection.

    c. This section shall not apply to violations that involve purposeful, knowing, reckless, or criminally negligent conduct.

    d. Nothing in this section is intended nor shall be constructed to in any way modify, limit or impair the authority of an enforcement agency to undertake any criminal investigation or prosecution, or obtain criminal penalties, restitution, and any other sanction available pursuant to the criminal laws of the State.

    e. Nothing in this section is intended or shall be construed to in any way modify, limit or impair the authority of an enforcement agency to obtain damages, declaratory, injunctive or other equitable relief, or any other form of relief available by law.

    f. If a regulated entity discovers a violation of an environmental law, regulation or permit as a result of an environmental audit and discloses the violation as provided in this section, such action shall preclude an action by any person against the regulated entity pursuant to the provisions of P.L.1974, c.169 (C.2A:35A-1 et seq.), relating to the conduct that constituted the violation.

 

    8. Information contained within an environmental audit report and disclosed to an enforcement agency as part of an action to achieve compliance pursuant to section 7 of P.L. , c. (C. )(before the Legislature as this bill) shall not be disclosed by the enforcement agency.

 

    9. a. Nothing in sections 1 through 10 of P.L. , c. (C. )(before the Legislature as this bill) shall limit, waive or abrogate the scope or nature of any statutory or common law privilege, including the work product doctrine and the attorney-client privilege.

    b. Nothing in sections 1 through 10 P.L. , c. (C. ) (before the Legislature as this bill) shall limit, waive, or abrogate any reporting requirements or permit conditions required by any other law, rule, regulation or ordinance.

    c. No governmental entity may adopt a rule, regulation, ordinance, or a permit condition for the purpose of circumventing the evidentiary limitations established in sections 1 through 10 of P.L. , c. (C. ) (before the Legislature as this bill) by requiring disclosure of an environmental audit report.

 

    10. The department, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), may adopt rules and regulations to implement the provisions of sections 1 through 10 of P.L. , c. (C. ) (before the Legislature as this bill).

 

    11. As used in sections 11 through 18 of P.L. , c. (C. ) (before the Legislature as this bill):

    "Enforcement agency" means the State and any of its departments, offices, bureaus, agencies, or authorities, and any political subdivision of the State, including local health agencies or authorities, empowered with the ability to enforce an environmental law in its own name or on behalf of the State.

    "Environmental audit means a voluntary, internal evaluation of one or more facilities or an activity at one or more facilities regulated under any federal, State, or local environmental law, or of management systems related to that facility or activity, that is designed to identify and prevent noncompliance and to improve compliance with statutory or regulatory requirements, and that is conducted by the owner or operator of the facility or facilities, by the owner's or operator's employees, or by independent contractors. An environmental audit program shall substantially include at least the following elements:

    (1) A written policy articulating upper management support for a environmental auditing program, and for compliance with facility policies, permit requirements and statutes and regulations, as well as a commitment to follow up on, correct and prevent recurrence of identified problems;

    (2) Articulated objectives, scope, frequency, and dedicated resources;

    (3) The auditing function shall be sufficiently free of interference with inquiry and observation or fear of potential retribution to ensure objectivity;

    (4) Explicit written audit procedures; and

    (5) Specific procedures to promptly prepare candid and appropriate written reports on audit findings, corrective actions, schedules for implementation, and for reporting of violations.

    "Environmental audit report" means a set of documents, each labeled "Environmental Audit Report" and prepared as part of an environmental audit, and which shall include a statement setting forth the scope of the environmental audit, a certified index identifying the documents in the report, and the calender dates on which the environmental audit was initiated and completed. The environmental audit report may include exhibits, appendices, and conclusions, and recommendations; memoranda and documents analyzing part or all of the audit report and discussing implementation issues; an audit implementation plan that addresses correcting past noncompliance, improving current compliance, and preventing future noncompliance; documentation associated with the tracking of corrective actions for non-compliance audit findings; and supporting information including field notes and records of observations, findings, suggestions, conclusions, drafts, memoranda, drawings, photographs, environmental sampling results, computer-generated or electronically recorded information, maps, charts, graphs, and surveys, provided, however, that the supporting information is collected or developed for the purpose of and in the course of an environmental audit.

    "Regulated entity" means any person, corporation, company, partnership, or other business entity, and any governmental entity including a federal, State, and local government facility, regulated under the State environmental laws that the department administers.

    "Voluntary" means not required by statute, regulation, permit, order, or agreement.

 

    12. An environmental audit report shall be privileged and shall not be admissible or discoverable as evidence in any civil or administrative proceeding or review, except as provided in sections 13, 14, or 15 of P.L. , c. (C. )(before the Legislature as this bill). Nothing in sections 11 through 18 of P.L. , c. (C. ) (before the Legislature as this bill) shall be construed to prevent an enforcement agency from seeking, obtaining or admitting an environmental audit report in the manner provided in section 4 of P.L. , c. (C. )(before the Legislature as this bill) or in the manner provided in sections 11 through 18 of P.L. , c. (C. )(before the Legislature as this bill).

 

    13. The privilege established in section 12 of P.L. , c. (C. ) (before the Legislature as this bill) shall not apply if:

    a. The regulated entity for whom the environmental audit report was prepared, waives the privilege, regardless of whether the environmental audit report was prepared by the owner or operator of the regulated entity, by the owner's or operator's employees, or by an independent contractor hired by an owner or operator;

    b. A court or administrative law judge determines that the privilege is being asserted for a criminal or fraudulent purpose;

    c. A court or administrative law judge determines that (1) the public's interest in obtaining the information outweighs the regulated entity's legitimate expectation of confidentiality and (2) the information contained in the environmental audit report could not be secured from any less intrusive source. The exception to the privilege provided in this subsection shall not apply to an enforcement agency seeking to obtain an environmental audit report unless the enforcement agency is seeking injunctive relief to prevent serious harm to human health or the environment;

    d. The environmental audit report shows evidence that the regulated entity for which the environmental audit report was prepared is not or was not in compliance with an environmental law and the regulated entity did not initiate appropriate efforts to achieve compliance with the environmental law or complete any necessary permit application promptly after the noncompliance with the environmental law was discovered and, as a result, the regulated entity did not or will not achieve compliance with the environmental law or complete the necessary permit application within a reasonable amount of time; or

    e. A court or administrative law judge determines that the material for which the privilege is claimed is not subject to the privilege as provided in section 15 of P.L. , c. (C. )(before the Legislature as this bill).

 

    14. a. No person shall use any privileged information to discover any other information and any information so discovered shall be inadmissible in any action or proceeding. Nothing in this subsection shall be construed to limit the authority of an enforcement agency to conduct an investigation or admit into evidence any document or information.

    b. If a court or administrative law judge determines that any portion of an environmental audit report is not privileged pursuant to sections 11 through 18 of P.L. , c. (C. )(before the Legislature as this bill), it shall by the entry of appropriate protective orders provide that information is disclosed only to the extent required for the proper conduct of the subject action or proceeding.

 

    15. The privilege established in section 12 of P.L. , c. (C. ) (before the Legislature as this bill) shall not extend to:

    a. Documents, communications, data, reports, or other information required to be collected, developed, maintained, reported, or made available to a governmental entity pursuant to any federal, State or local law, ordinance, regulation, permit or order;

    b. Information obtained by observation, sampling, or monitoring by any enforcement agency;

    c. Information obtained from a source independent of the environmental audit;

    d. Documents existing prior to the commencement of and independent of the environmental audit;

    e. Documents prepared subsequent to the completion of and independent of the environmental audit; and

    f. The underlying factual information upon which an environmental audit report is based.

 

    16. Nothing in sections 11 through 18 of P.L. , c. (C. ) before the Legislature as this bill) shall limit, waive or abrogate the scope or nature of any statutory or common law privilege, including the work product doctrine and the attorney-client privilege.

 

    17. Nothing in sections 11 through 18 of P.L. , c. (C. )(before the Legislature as this bill) shall limit, waive, or abrogate any reporting requirements or permit conditions required by any other law, rule, regulation or ordinance.

 

    18. No governmental entity may adopt a rule, regulation, ordinance, or a permit condition for the purpose of circumventing the privilege established in section 12 of P.L. , c. (C. )(before the Legislature as this bill) by requiring disclosure of an environmental audit report.

 

    19. This act shall take effect immediately and shall apply to any environmental audit report prepared on or after July 1, 1995.

 

 

STATEMENT

 

    This bill would promote the performance of voluntary environmental audits by the creation of incentives and the removal of disincentives. The bill seeks to strike the proper balance between the needs of the regulated community to have an expectation of privacy in the environmental audit reports with the needs of governmental entities in enforcing the State's environmental laws and with individuals who may have been harmed by the actions of a person performing an environmental audit.

    The bill strikes this balance by establishing limitations on when a governmental entity seeking to enforce an environmental law can seek audit information, by providing immunity or relief from civil penalties for businesses that perform environmental audits and discover and report violations of the law, and by establishing an evidentiary privilege for audit reports.

    Section 2 of the bill sets forth the policy reasons why environmental audits need to be promoted and why the provisions of the bill are necessary to that promotion. The bill states that enforcement policies should promote compliance rather than sanctions and the audits would help achieve the goal of voluntary compliance with environmental laws. Further, the bill recognizes the benefits that environmental audits would have for businesses such as saving money and avoiding potential liabilities.

    Section 3 of the bill establishes the definitions of an "environmental audit" and "environmental audit report." The environmental audit is to be voluntary and comprehensive. It is intended to evaluate activities or management systems at facilities in an effort to prevent noncompliance with environmental laws and to improve operations. The bill sets forth the essential components for successful environmental audits. The environmental audit report is expansively defined so that the information prepared as part of the audit would be considered part of the report and subject to the bill's protections, except as otherwise provided. This section also defines "enforcement agency" to be any governmental entity that enforces the State's environmental laws.

    Section 4 sets forth the limitations on when an enforcement agency can seek audit information. It establishes a five part test which consists of (1) reasonable grounds to believe a violation occurred; (2) a showing that the violation may result in serious environmental or health harm; (3) knowledge of the violation by independent means; (4) a substantial need for the information; and (5) the information was not otherwise available or the substantial equivalent of the information could not be obtained without unreasonable cost or delay.

    The limitations in paragraphs (4) and (5) are substantially similar to the test to obtain documents prepared in anticipation of litigation as set forth in Rule 4:10-2 of the Rules Governing Civil Procedure. The intent is that the same limitations and analysis governing the Court Rule be applied in this context.

    If all these conditions are met, the enforcement agency may then seek to obtain only those portions of the audit that are relevant to the underlying violation. The bill also prescribes the process by which the enforcement agency can seek the information.

    Although this section strictly limits when an enforcement agency can obtain audit information, the enforcement agencies will retain all necessary powers to obtain audit information when truly necessary. For instance, the bill provides that these limitations do not apply to criminal investigations or prosecutions. Additionally, the limitations in this section limit not only governmental "fishing expeditions," but also the use of audit information in the civil prosecution of relatively minor violations. If, however, the government knows of a serious environmental violation, substantially needs the information, and could not get the information from another source, the audit information would be available.

    The bill further provides that certain information, such as information required to be prepared, reported, or disclosed by law, as well as the underlying factual basis for the audit report, are not subject to the protection provided by the bill. The intent of this provision is to prevent a person from shielding otherwise available information by the use of an environmental audit. However, the bill recognizes that tests performed as part of the audit will be considered part of the audit unless otherwise required to be disclosed.

     Section 5 of the bill provides that enforcement agencies should give a low priority for nonmandatory inspections for facilities that have performed environmental audits.

    Section 6 of the bill provides that the Department of Environmental Protection shall consider the existence of audits as a mitigating factor in assessing civil penalties. This section will apply to all violations even if not discovered and disclosed as part of an audit. The bill allows the department to propose, not require, environmental audits to be performed as a remedy to prevent a regulated entity from experiencing future violations.

    This section also expresses the support of the Legislature for the current policy guideline of the Attorney General whereby prosecutors may use the existence of environmental audits as a mitigating factor in the exercise of their prosecutorial discretion.

    It is the intent in both provisions of this section that whenever the existence of an environmental audit serves as a mitigating factor for penalties, that the relevant enforcing agency consider the usefulness of the audit, its comprehensiveness, and the extent that it exceeds the requirements for internal investigations that may exist in the law.

    Section 7 establishes limited immunity from civil penalties for regulated entities that perform an audit, find a violation, and voluntarily disclose it to the proper enforcement agency. In order to get the immunity from penalties, the regulated entity must also correct the violation and achieve compliance within a reasonable time. If compliance cannot be achieved within 60 days, the regulated entity would be given a reasonable schedule to comply. The regulated entity would also be required to take expeditious action to remedy conditions that pose imminent and substantial endangerment. Further, the regulated entity would have to take steps to prevent the violation from recurring and to remedy any harm that may have occurred.

    Even if all these steps are not taken, the bill encourages the enforcement agency to reduce or not impose any penalty under the proper circumstances. If a regulated entity discloses a violation pursuant to this section they would also be protected from a citizen suit pursuant to the "Environmental Rights Act." This section does not limit an enforcement agency from seeking equitable relief.

    Section 8 of the bill provides that information voluntarily disclosed under section 7 shall not be disclosed.

     Section 9 provides that other privileges are not affected by this bill, that other legal requirements are not changed, and that governmental entities may not try to circumvent the provisions of this bill.

    Section 10 allows the Department of Environmental Protection to adopt necessary rules and regulations.

    Sections 11 through 18 establish the evidentiary privilege for environmental audits. The bill will allocate these sections to the evidentiary provisions in Title 2A of the New Jersey Statutes whereas the prior sections will be allocated to Title 13 of the Revised Statutes. This privilege does not affect an enforcement agency from obtaining audit information under the previous provisions of the bill but sets up different evidentiary protections from disclosure to other persons as well as to enforcement agencies when not using their powers in the prior sections of the bill.

    Section 11 provides for the same definitions as in the prior sections of the bill.

    Section 12 establishes an evidentiary privilege for environmental audit reports. The privilege will prevent the information from being admissible or discoverable in any civil or administrative proceeding.

    Section 13 provides exceptions to the privilege. The exceptions are (1) when the privilege is waived by the owner or operator of the regulated facility; (2) if the privilege is being asserted for a fraudulent or criminal purpose; (3) if the public interest outweighs the policy of confidentiality and the information cannot otherwise be obtained; (4) when the information is not privileged; or (5) when the audit uncovered a violation of an environmental law and proper efforts were not take to correct the violation. The balancing test in paragraph (3) is not applicable to enforcement agencies except when an enforcement agency is seeking injunctive relief to prevent serious harm to human health or the environment.

    The test in paragraph (3) is the test applied when a person is seeking to obtain information that is protected by the attorney-client privilege. This test was articulated by the New Jersey Supreme Court in Matter of Nackson, 114 N.J. 527 (1989). The Legislature recognizes that the articulation of the public policy reasons for the attorney-client privilege has been extensively developed over the years and that an environmental audit evidentiary privilege does not share the same history. The Legislature, however, believes that environmental audit evidentiary privilege is as important to the public good and welfare as is the attorney-client privilege. Therefore, it is the intent of the Legislature that the test to obtain privileged environmental audit reports pursuant to this paragraph be no less stringent than obtaining information subject to the attorney-client privilege.

     Section 14 provides that privileged information may not be used to obtain other information and allows courts to issue certain protective orders. This provision would not taint information obtained by an enforcement agency that is privileged but it also would not allow the privileged information from being admitted into evidence.

    Section 15 sets forth the information that is not subject to the privilege. This provision is identical to the one that appears in section 4 of the bill.

    Section 16 provides that existing privileges are not impacted by the bill.

    Section 17 provides that existing legal requirements are not impacted by the bill.

    Section 18 provides that the privilege provisions may not be circumvented by governmental entities by the adoption of a requirement to disclose privileged information.

    Section 19 provides that the bill is to take effect immediately and apply to audits conducted on or after July 1, 1995. This date allows regulated entities to begin to conduct environmental audits in anticipation of this bill.

 

 

 

Promotes the performance of environmental audits.