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Incentives for Beyond Compliance Practices

Organization(s) Massachusetts Office of Technical Assistance
Project Description A launched incentives program spearheaded by the MA Office of Technical Assistance (OTA) offers the possibility of encouraging comprehensive, beyond-compliance practices, such as implementation of EMS through appropriately designed market-based incentives. After several years of planning and negotiations, OTA and four major environmental insurance providers introduced the first-of-its-kind "Environmental Insurance Incentives Program" on January 24, 2001. Under the program, participating insurance providers agree to make available a range of incentives to those qualified businesses able to demonstrate implementation of strong environmental management practices. The Incentives Program represents an explicit effort on the part of MA environmental officials and the insurance industry to encourage proactive, preventive, comprehensive environmental management planning at industrial facilities. The incentives are limited to companies that file MA Toxics Use Reduction plans during the program's initial phase. However, government, industry, and insurance representatives all agree that this kind of market-based approach is perfectly suited for encouraging adoption of a certified EMS, and hope to expand program eligibility accordingly.

The type of policy benefits offered through the Incentives Program will vary according to the specific underwriting characteristics of each participating insurance provider, though they will likely include lower deductibles, enhanced lines of coverage, or reductions in policy pricing premiums. The incentives will be structured to best recognize the risk-reduction and cost-savings potential of comprehensive environmental planning, thereby helping to emphasize the critical link between environmental and economic performance.

More Info www.state.ma.us/ota/eiip.htm
Project Contact
Name Marina Gayl
Phone 617-626-1077
Project Keywords
Areas of P2 Expertise Environmental Management Systems
Newsletter Northeast States Pollution Prevention News - Vol. 11 No. 1, Spring 2001


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