[Federal Register Volume 62, Number 220 (Friday, November 14, 1997)]
[Notices]
[Pages 61112-61113]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30011]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-5921-5]


Announcement and Notice of Availability of the General Policy on 
Superfund Ability to Pay Determinations

SUMMARY: As part of EPA's continuing commitment to foster fairness in 
the enforcement process, the Agency is issuing this policy to explain 
what is necessary for an acceptable ability to pay (ATP) settlement in 
Superfund cases. It is EPA's intent to balance the need for settling 
environmental liability equitably without jeopardizing the viability of 
a business or creating an undue financial hardship for either 
businesses or individuals. The main text of the policy document 
addresses general issues that apply to the ATP process and ATP 
settlements. The policy document also contains two appendices that 
address issues specific to making ATP determinations for individuals 
and businesses. The policy document establishes an ``undue financial 
hardship'' standard for determining a party's ability to pay its share 
of Superfund cleanup costs, and uses a two-part analysis to determine 
what is an acceptable ATP settlement amount. The first part of the 
analysis, called the ``balance sheet phase,'' looks at the assets, 
liabilities, and owners' equity of the ATP Candidate, calculating the 
amount of money available from excess cash, the sale of assets that are 
not ordinary and necessary, borrowing against assets, and owners' 
equity. The second part of the analysis, called the ``income and cash 
flow statement phase,'' looks at the income and expenses of the party 
and generally calculates ``available income'' for a Superfund 
settlement over a five-year period. In calculating ``available 
income,'' the analysis takes into account ``increased future needs'' 
(i.e., ordinary and necessary expenses that will be incurred by the ATP 
Candidate that have not been incurred in the past or that were incurred 
previously but which are expected to be significantly greater than in 
the past).


[[Page 61113]]


FOR FURTHER INFORMATION CONTACT: Policy and Guidance Branch, Policy and 
Program Evaluation Division, Office of Site Remediation Enforcement, 
401 M St., SW, 2273A, Washington, D.C. 20460. Phone: (202) 564-5115. 
The policy is available electronically at http://www.epa.gov/
envirosense/oeca/osre/osredoc.html. Copies of the policy can be ordered 
from the National Technical Information Service (NTIS), U.S. Department 
of Commerce, 5285 Port Royal Road, Springfield, VA 22161. Each order 
must reference the NTIS item number, PB97-199731. For telephone orders 
or further information on placing an order, call NTIS at (703) 487-4650 
or (800) 553-NTIS. For orders via E-mail/Internet, send to the 
following address: [email protected].

    Dated: September 30, 1997.
Barry Breen,
Director, Office of Site Remediation Enforcement.
[FR Doc. 97-30011 Filed 11-13-97; 8:45 am]
BILLING CODE 6560-50-P