EPA Offers Enhanced Incentives to Encourage Self-Reporting by Purchasers

The U.S. EPA recently announced an expansion of its Audit Policy aiming to encourage “new owners” of regulated facilities to voluntarily disclose and correct environmental violations in exchange for a mitigation of penalties. The new policy presents a significant new opportunity to buyers of businesses and of regulated facilities, as well as new challenges for business transactions where one party seeks to make use of the new policy.