Vinson & Elkins LLP
Ronald J. Tenpas, Carrick Brooke-Davidson and Conrad Bolston
September 3, 2019
The Department of Justice (“DOJ”) will no longer use Supplemental Environmental Projects (“SEPs”) in settlements with states and municipalities as a result of a policy change announced August 21, 2019.1 The change follows a series of steps taken since 2017 curtailing SEPs. It may foreshadow future action to formally curtail SEPs in settlements with private sector parties, as the memo notes that the Department is actively reconsidering current guidance that continues to allow SEPs in settlements with private parties.2 Even without a formal change to private party settlements, companies should expect increased difficulty in incorporating SEPs in negotiated settlements and, if engaged currently in negotiations, should consider accelerating those negotiations if inclusion of a SEP is a critical priority.