The purpose of this study is to examine the environmental impact assessment (EIA) reports invalidated by court and provide suggestions for Environmental Protection Administration (EPA) on avoiding the compensation issues of illegal EIA reports. First, the patterns of illegal EIA’s evaluation cases invalidated by court were analyzed. Second, the differences between damage compensation and state compensation were summarized. Among the reports, the Central Taiwan Science Park Phase III and the Miramar Development Project were further discussed on whether the EPA might be responsible for the damage compensation or state compensation. Finally, suggestions on how EPA may be able to avoid compensation in the future in terms of the illegal EIA’s evaluation cases.