Supplemental Environmental Projects (SEPs)

SEPs are environmentally beneficial projects that a respondent agrees to undertake in settlement of an enforcement action. Dollars directed to TCEQ-approved environmental projects may be used to offset assessed penalties in enforcement actions.

TCEQ Seeks Stakeholder Input on Draft SEP Guidance (Publication GI-352) Document Revisions. TCEQ will conduct a hybrid stakeholder meeting on April 29, 2026, to solicit informal comments on the SEP Guidance Document Revisions. For instructions on attending the hybrid meeting or providing written comments please see the stakeholder meeting notice.

The draft guidance document revisions include general updates to align with current agency practices, streamline processes, and update program verbiage. The revisions also include eliminating the requirement for contributions to pre-approved SEPs be limited to pre-approved SEPs of the same media type as the violation media in the enforcement order. In addition, the maximum offset limit for indirect benefit SEPs is increasing from 33% to 50%.

A respondent in an enforcement action may negotiate an agreement to perform a SEP to offset a portion of the assessed administrative penalty. All proposed SEPs should have a direct and measurable environmental benefit.

The SEP program offers three types of SEPs:

Contribution SEP whereby the Respondent contributes to a pre-approved SEP performed by a Third-Party;
Custom SEP whereby the Respondent performs the project using their own resources;
Compliance SEP whereby an eligible Local Government may correct the violations alleged in the enforcement action or remediate environmental harm caused by the alleged violations.

See some examples of SEPs

Review the SEP Statute

Read our SEP Guidance (publication GI-352)