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

Résumé

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