California Air Resources Board

The California Air Resources Board (CARB) has a Supplemental Environmental Project (SEP) Policy. CARB's SEP Policy allows community-based projects to be funded from a portion of the penalties received during settlement of enforcement actions. SEPs can improve public health, reduce pollution, increase environmental compliance, and bring public awareness to neighborhoods most burdened by environmental harm. CARB has a policy for allowing a SEP to be used in lieu of a portion of a penalty payment to mitigate the effects of a particular violation.

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

The California Air Resources Board (CARB) Supplemental Environmental Project (SEP) Policy allows community-based projects to be funded from a portion of the penalties received during settlement of enforcement actions. SEPs can improve public health, reduce pollution, increase environmental compliance, and bring public awareness to neighborhoods most burdened by environmental harm.

We are currently seeking project proposals that could be funded under proposed policy changes to CARB’s SEP Policy.

In order to qualify, project proposals must meet all the following criteria:

• Reduce direct/indirect air emissions or exposure to air pollution (e.g. Diesel PM, NO_X, Greenhouse gases, VOCs, etc.)
• Relate to the violation
• Not benefit the violator
• Go above and beyond regulatory requirements
• 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.

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