CERCLA Enforcement Against Lenders and Government Entities That Acquire Property Involuntarily

Résumé

This policy memorandum sets forth the Environmental Protection Agency (``EPA'') and the Department of Justice's (``DOJ'') policy regarding the government's enforcement of the Comprehensive Environmental Response, Compensation and Liability Act (``CERCLA'') against lenders and against government entities that acquire property involuntarily. As an enforcement policy, EPA and DOJ intend to apply as guidance the provisions of the ``Lender Liability Rule'' promulgated in 1992, thereby endorsing the interpretations and rationales announced in the Rule. See ``Final Rule on Lender Liability Under CERCLA,'' 57 Fed. Reg. 18344 (April 29, 1992). This rule was vacated by the Circuit Court of Appeals for the District of Columbia in 1994. The purpose of the memorandum is to provide guidance within EPA and DOJ on the exercise of enforcement discretion in determining whether particular lenders and government entities that acquire property involuntarily may be subject to CERCLA enforcement actions. The memorandum advises EPA and DOJ personnel to consult both the regulatory text of the Rule and the accompanying preamble language in exercising their enforcement discretion under CERCLA as to lenders a