California Air Resources Board

The California Air Resources Board's (CARB) Supplemental Environmental Project (SEP) Program allows community-based projects to be funded from a portion of the penalties received during settlement of enforcement actions. The SEP Program aims to improve public health, increase compliance, and reduce the pollution burden of communities that are disproportionately impacted by environmental harm. CARB's SEP policy allows a SEP to be used in lieu of a portion of a penalty payment to mitigate the effects of a particular violation. The SEP program is a voluntary program for violators who may choose to fund one or more SEPs with up to 50% of their penalty fees during the enforcement case settlement process. Availability of funding is not guaranteed and the amount of funding available from each settlement may vary.

CARB has updated our SEP Policy to incorporate the requirements of Assembly Bill 1071. The Policy now includes:

• A public process to solicit potential SEPs from disadvantaged communities.
• Allowing the amount of the SEP to be up to 50% of the settlement penalties.
• An annual list of SEPs that may be selected to settle a portion of an enforcement action.
• A consideration in the relationship between the location of the violation and location of the proposed SEP with priority given to projects in disadvantaged communities.

Submitting Project Proposals

CARB accepts project proposals year-round. To be eligible for SEP funding, proposals must meet all of the following criteria:

• Further CARB's purpose of cleaning up the air by: 
  • Reducing the risk burden posed to public health, 
  • Prevent future air quality problems beyond those addressed in current air quality programs, or
  • Improving the environment
• Relate to the violation by pollutant(s) or location, 
• Not benefit the violator, 
• Go above and beyond regulatory requirements, and
• Demonstrate that the proposal is technically, economically, and legally feasible

Pursuant to Assembly Bill 1071, higher consideration will be given to projects within or that benefit disadvantaged communities. In order for a project to be considered for funding, a SEP Proposal Form with supporting documentation is required. These proposals must meet the minimum requirements as listed above.

To submit a CARB SEP proposal, please complete the CARB SEP proposal and budget forms and submit them via email to SEP@arb.ca.gov. 

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