EHS Compliance in Texas: TCEQ Investigations and Enforcement

Updated February 2025

Business owners in Texas must contend with a wide range of regulations covering their facilities’ environmental, health, and safety performance. This landscape has produced some of the most innovative manufacturing technologies and protected the environment and the health of the public.

It also means that anyone managing a facility in Texas should also make themselves familiar with the Texas Commission on Environmental Quality (TCEQ) and their investigative and enforcement processes. This article will give you a complete overview of the TCEQ’s auditing and enforcement procedures so that your team will know how to prepare and respond.

Any regulated business can be audited, and it doesn’t imply that your business is in violation of any rules or codes if you receive a visit from a TCEQ official. But no matter how closely you stick to EHS regulations, it never hurts to be as prepared as possible if your auditor schedules an investigation.

How the TCEQ Handles Investigations

Investigations are one of the main tools the TCEQ uses to assess your facility’s compliance performance. Let’s break down the different types of investigations you may encounter.

First, a general tip ERA’s compliance consultants always like to share: the backbone of every successful investigation is recordkeeping. Having all your information in one place, easily accessible, and highly organized means that your auditor will have less work to do, there won’t be any surprises, and the whole thing will be finished in less time.

Missing or incomplete records are among the biggest red flags auditors look for and are also reassuring signs when they’re in order. Start your investigation off on the right foot by getting all your records in order and keeping them that way - you’ll be prepared even for unscheduled investigations. A robust environmental management system is a great way to achieve this.

The three types of investigations to be aware of are:

• Scheduled investigations
• Investigations due to complaints
• Investigations after a record review

Comprehensive Compliance Investigations

Scheduled investigations may occur annually or biannually. The regulators responsible will give prior notice when a scheduled investigation is upcoming, typically one or two weeks in advance. When the inspector arrives, he or she will bring a specific checklist of items used to conduct a Comprehensive Compliance Investigation (CCI). These items, in a general sense, include:

• A file review
• A facility evaluation
• An exit interview

During a CCI, expect the investigator to take a thorough look at all of your records and evaluate your current recordkeeping system. You should be able to show, through your existing records, that you have kept up with regional and federal reporting requirements and that you are currently tracking your performance. If your investigator is familiar with your business, you may not be asked to show the full five previous years of paperwork, but be prepared regardless. If your recordkeeping processes are efficient, it should not be an issue to locate the last five years’ worth of compliance proof.

If your records are found to be in order, the investigator will move on to a site tour, during which you should be prepared to demonstrate which sources you report for, what control devices are being used on site, and which processes are in place to ensure compliance.

It’s also important, however, to pay attention to the small picture items that can quickly add up to a sizable violation. Missing Safety Data Sheets (SDSs) in the workplace puts employees at risk. Improperly sealed, leaking, or labeled containers are a fineable offense. Missing a required safety sign at a worksite is a violation.

Complaint Investigations

Complaint Investigations are unscheduled audits that occur as a result of a complaint from the public, an employee, or an outside organization (for example, a local community group or an environmental watch group). The majority of complaint investigations are due to visual observations such as excessive fumes released from a facility or sludge in a body of water downstream from a facility.

You will not be notified about upcoming complaint investigations. There is typically a 30-day response time from when the complaint is submitted to the investigation, though this can differ based on the availability of investigators and the severity of the complaint. However, this 30-day period can be detrimental to the regulated community, as during this time, the body submitting the complaint is also able to attract media attention and the attention of other groups.

Without a doubt, the best course of action is to ensure your records and operations are in compliance in order to avoid community complaints entirely - but have a plan of action if a sudden equipment malfunction creates visible signs of trouble.

First, always be on the lookout for visible signs of excess emissions. If you notice something, check your existing records about the source(s) and start keeping records of the event. Since temporary compliance upsets (like an unplanned MSS event) can have long-lasting effects, we’ve written an article specifically about how to respond to equipment malfunctions and MSS events so that you can avoid or minimize penalties. Unsurprisingly, it usually comes down to keeping good records of the whole event.

Record Review Investigations

Record review investigations are also unannounced and focus on reviewing the documentation for a specific set of documents that should be submitted to the TCEQ (or another state regulator if your facility is located outside of Texas). These include documents like License Irrigators, Dry Cleaner Registration, and Financial Assurance for Petroleum Storage Tanks. The TCEQ performs these reviews at the TCEQ offices.

Preparing for an Upcoming TCEQ Investigation

You can never be too organized when it comes to prepping for an audit. Before any regulators see your facility, you should strive to have all of your paperwork and records lined up and ready. These will be the main tools your auditor uses to assess your compliance and the first impression about how seriously you take EHS management. Shoddy, disorganized, or missing records are a huge red flag for auditors and will only make them pry deeper into your operations.

First, you should ensure that all the information about your facility (like any ID codes assigned by the TCEQ or registered owner name) is consistent across all the Texas government’s online databases. Check the Central Registry, Online Databases, Secretary of State, Texas Comptroller, and County Appraisal records should all have the same information - this will not only help your audit go smoothly but will also help minimize any red tape your business might face going forward with other projects.

Internal Recordkeeping

The bulk of your time, however, should be dedicated to ensuring your internal recordkeeping is up to snuff. Review all of your relevant checklists, permits, guidance documents, and other publications to determine which paperwork you need to have on hand to prove compliance with your regulations. Make sure none of your regulations have been updated without you knowing.

Look specifically for requirements about how you document sampling (how often, which sources, which locations, etc.), how you track equipment performance and maintenance (how often must they be checked and how should this be tracked), how you track all types of regulated emissions (monitoring methods, reporting periods, limits, etc.), and how you demonstrate compliance (which reports must be submitted and deadlines).

For every regulation and permit condition, you should have paperwork outlining how you comply with it, records showing your methods for compliance, and records that show that you have complied in a timely manner. You will want all of these to show to your TCEQ regulator. On top of all that, you should be able to trace back exactly when each of your records was produced and who was responsible. Clear audit trails will become very important if any issues arise internally or if your auditor has questions.

The best practice for this type of preparation is to have a system in place that already centralizes and creates audit trails for your recordkeeping. A digital filing system storing everything in one location is far preferable to having to scramble and dig through piles of paperwork and filing cabinets across multiple offices - and is far more impressive to auditors.

Conducting an Internal Audit

Once you have your papers in order, ERA Environmental also recommends that you take the time to conduct a mock internal audit with personnel who are responsible for EHS compliance. This is one of the best ways to identify gaps in your compliance records before your auditor does.

It’s also important to review and reiterate your internal safety procedures with all staff and ensure all of your equipment and sources are functioning properly (nothing is as disastrous as leaking chemicals during an audit).

If you are in doubt about some aspect of your upcoming audit, don’t hesitate to contact your regulators and ask for advice or input. They are there to help.

After Your TCEQ Investigation

An investigation from the TCEQ can take several days, weeks, and sometimes months, depending on the complexity and scope of your permit and regulatory requirements. We can say with certainty that the more organized your records are for the audit, the more efficiently your auditor can do their work.

During that time it would be best if you keep an open communication line with your investigator just in case more information or clarifications may be needed. Even once the auditor has left your facility and is compiling his or her reports, don’t assume the investigation is over or that your job in assisting them is done.

At the end of the TCEQ investigation, it will conclude one of the following:

• No additional issues, concerns, or violations
• Additional issues that should be addressed but are not considered violations
• concerns or violations that will require additional corrective action

As the investigation concludes, the investigator will discuss the alleged violation(s) and additional issue(s). The investigator will also compile and provide your EHS manager with an exit interview form noting no concerns or alleged violations and/or additional issues. Additionally, the investigator will discuss the time frame for which compliance documentation should be submitted to resolve any alleged violation(s). If you fail to complete these actions before the deadline, the TCEQ will issue you a written notice of violation (NOV).

Once the investigation report has been approved, the TCEQ will send a notice referencing the investigation of any additional issues, concerns, or violations will be listed in the attached summary of investigation findings.

There are three types of notices as a result of compliance investigations.

• General Compliance Notice
• Notice of Violation (NOV)
• Notice of Enforcement (NOE)

A General Compliance Notice indicates your facility was found to be in compliance. This notice could contain an Additional Issue notice, which means an issue was noted during the investigation. This small issue should be addressed by communicating with your regulator and following their recommendations. In either case, you should file the letter with your compliance records.

A Notice of Violation (NOV) means violations were documented during the investigation. Corrective action is required to address the listed violations. For assistance addressing the violations, contact the Regional Office, the specific Central Office Program, or Small Business and Local Government Assistance for technical assistance.

A Notice of Enforcement (NOE) means violations were documented during the investigation. Corrective action will be listed in the Summary of Investigation Findings. If formal enforcement is initiated against the entity, an order or agreement will be issued, fines will be levied, and compliance will still be required.

Understanding TCEQ Violations

Violations are any act of noncompliance, ranging from severe to minimal: minor recordkeeping infractions are violations, as are major releases of unauthorized emissions. The list of possible violations is endless, though an EH&S Manager doing their job properly and using a good system should be able to avoid preventable violations.

It’s worth noting that not every violation translates into a fine - a small violation may only require follow-up action rather than carry a financial penalty. However, any violation will be kept on record so that future investigations can track if your facility has a history of repeating the same minor violations - a pattern of any type of noncompliance will be penalized.

If the investigation results in zero violation citations, the compliance enforcement process ends until the next scheduled investigation or until a complaint has been issued against your facility. If the investigator does observe a violation or feels any concerns about your operations, you will receive either a Notice of Violation (NOV), Notice of Enforcement (NOE), a Field Citation, or an Area of Concern (AOC) Notice.

There are also three categories of violations - A, B, and C - that measure the severity of any noncompliance and noncompliance patterns:

• Category A: The highest degree of severity, requiring immediate enforcement if observed during an investigation. This includes violations like documented falsification of data, operating with an expired permit, and unauthorized disposal of solid waste.
• Category B: The responsible party will first be given an opportunity to comply through a NOV, which will specify a compliance due date, solicit a compliance schedule, and/or acknowledge resolved violations. Note that two B violations within the most recent 5-year period will result in automatic enforcement, and the violation will not be erased after compliance. A common example of a category B violation is failing to conduct adequate monitoring where required by an operating permit.
• Category C: The lowest degree of noncompliance severity, three C violations within the previous 5 years will result in automatic enforcement. Examples include using slightly torn filter bags for collecting baghouse dust and failing to control wind-blown waste.

Notice of Violation

An NOV alerts your EHS department and executives to some type of violation at your facility and gives you an opportunity to take corrective actions to achieve compliance without the violation being brought before the Enforcement Division. Most NOVs fall into the B or C categories and typically come with a 30-day window to correct in order to avoid penalties.

Notice of Enforcement

The NOE is given out to any facility that requires immediate enforcement action and/or fines. This is most commonly the case when one or more category A violations are observed or when multiple smaller violations add up over the past five years. A NOE does not come with the opportunity to achieve compliance in order to avoid fines.

Field Citations

Field Citations are a less common type of notice that is designed to promote a quick resolution for observed violations. A Field Citation usually comes with a reduced monetary penalty compared to the more formal enforcement process.

If presented with a field citation, you have the option to accept it and pay the fine or to decline the field citation and opt to go through the standard administrative enforcement process. Typically, this will result in a higher fine if the Office of Enforcement and Compliance Assurance (OECA) sides with the investigator. Declining a field citation is only recommended if you are 100% positive the investigator is incorrect - however, your records should be clear enough to prevent this from occurring.

Area of Concern

An AOC is a type of violation that meets all of the following TCEQ criteria:

1. The violation falls into category C
2. The violation does not involve a potential harm/impact
3. The violation is corrected within 14 calendar days of the investigation date
4. The violation was not documented at the same facility in the prior 12 months

An AOC, if corrected within the given time frame, should not appear in your compliance record. A NOV or NOE may come with one or more AOCs in it, but an NOE will not come with AOCs.

What to Do If You’ve Received a TCEQ Notice

Once you’ve received a letter from the TCEQ, your first step should be to determine if the corrective compliance actions can reasonably be completed within the prescribed timelines. If not, you can contact your regional office and request an extension. Note, however, that these are provided on a case-by-case basis and are not guaranteed. Accordingly, you should start the corrective actions as soon as possible rather than relying on an extension.

You may also contest the violation if you believe there is a discrepancy or a mistake with the cited allegations. However, be advised that if you decide to contest the TCEQ’s findings, you may still be required to adhere to the corrective action schedule until an official decision is made regarding your case.

The most important step in any case is to begin corrective actions immediately. This is the only way to mitigate the risks of further fines or violations - even if you plan on contesting the results or requesting an extension.

The TCEQ Enforcement Process

Before enforcement is pursued the Office of Enforcement and Compliance Assurance (OECA) screens the case in order to ensure that it meets the enforcement initiation criteria. Once a decision has been reached, either agreed orders  or findings orders enforcement actions will be put into place:

• Agreed Orders: These are the most common type of enforcement action. The majority of enforcement cases fall under this category. Agreed orders also contain a 20% deferral of the penalty amount.
• Findings Order: These are given when three repeated enforcement actions are noted, and there is an effect on human health and/or the environment. There is no 20% deferral should you receive a findings order. For more serious violations, findings orders contain an admission of guilt, and multiple findings orders will increase the penalty amount.

The OECA Enforcement Coordinator assigned to your case will send you the following standard documents:

• Cover letter
• Proposed order
• Penalty calculation worksheet
• Compliance history

After receiving these documents, you have several options for payment/reconciliation. The actual fines or actions required will vary by case and will be outlined in the above documents from the Enforcement Coordinator:

• Pay the penalty in full in one lump sum.
• Establish a payment plan with the Enforcement Coordinator.
• Request a Financial Inability to Pay Review from the OECA in cases where your business cannot pay the fine.
• Undertake supplemental environmental projects (SEPs). A SEP is a course of action required by the OECA in addition to or in lieu of a monetary penalty.
• Litigation if you wish to contest the enforcement actions or violations.

Once you complete the enforcement action, the enforcement process concludes but will stay on your record for the next 5 years.

Ensuring Ongoing TCEQ Compliance for Your Facilities

TCEQ violations can lead to serious penalties and further consequences for your organization. Maintaining compliance may seem like a challenge, but there are solutions available to streamline the entire process and give you lasting peace of mind without straining your team or your budget.

ERA Environmental Software Solutions provides a full range of EHS software to tackle all aspects of compliance under TCEQ, EPA, and other regulations. Our software is kept up to date with all the latest state and federal regulations by a team of seasoned regulatory experts. Advanced tools streamline monitoring, reporting, auditing, corrective actions, and more to help your team establish and maintain complete compliance.

Schedule a call with one of our project analysts and discover how ERA can fulfill your organization’s unique EHS compliance needs.