An Introduction To Supplemental Environmental Projects

Supplemental Environmental Projects (SEPs) are a means by which penalties for environmental violations may be mitigated by directing funds violations may be mitigated by directing funds toward environmentally beneficial projects. In all settlements of environmental enforcement actions, the Colorado Department of Public Health and Environment (the department) requires regulated entities to achieve and maintain compliance with all applicable regulations. All settlements include appropriate monetary penalties related to the environmental damage and financial gain the regulated entity received as a result of the violation. In some instances, regulated entities may mitigate a portion of their penalty by committing to implement a SEP. SEPs are projects that benefit either the environment or public health which a violator agrees to undertake in settlement of an enforcement action, but that the violator is not otherwise legally required to perform.