Ability to Pay

This category includes EPA policy and model settlement documents for when a party's financial ability to pay is a significant settlement consideration.

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Guidance on Evaluating a Violator's Ability to Pay a Civil Penalty in an Administrative Enforcement Action - (6/29/15) Memorandum to regions providing guidance on the process case teams should follow in evaluating ability to pay (ATP) claims and an overview of the Agency's tools to assist in ATP evaluations. https://www.epa.gov/enforcement/guidance-evaluating-ability-pay-civil-penalty-administrative-enforcement-actions

Revisions to 2009 ARC Memo and Issuance of Revised CERCLA Past Cost, Peripheral, De Minimis, De Micromis, and Municipal Solid Waste Settlement Models - (9/26/14) Transmittal memorandum revises, for purposes of all EPA settlement models issued under CERCLA, certain language included in the March 16, 2009 “ARC Memo” and announces issuance of 13 revised CERCLA judicial and administrative settlement models and two documents containing ability to pay inserts for the de minimis contributor models. https://www.epa.gov/enforcement/guidance-revisions-2009-arc-memo-and-issuance-cercla-payment-models (PDF 382K)

Interim Revisions to CERCLA Notice Letters and Update of Superfund and Small Waste Contributors Brochure to Notify Potential Settlors about Atlantic Research Corporation Decision - (4/30/08) Transmittal memorandum and six model documents and a brochure regarding contribution claims afforded by de minimis settlements after the Supreme Court's decision in Atlantice Research Corporation. https://www.epa.gov/enforcement/guidance-update-superfund-notice-letters-and-small-waste-contributors-brochure-based-arc (PDF 252 K)

Model Notice of Eligibility to Receive a De Minimis Party Settlement - (4/30/08) Model notice letter regarding eligibility to receive a de minimis party settlement. https://cfpub.epa.gov/compliance/models/view.cfm?model_ID=632 (PDF 46 K)

Model Notice Approving Reduction in Settlement Amount Based on Inability to Pay - (4/30/08) Model notice letter regarding approving reduction in settlement amount based on inability to pay. https://cfpub.epa.gov/compliance/models/view.cfm?model_ID=427 (PDF 48 K)

Model Notice Denying Reduction in Settlement Amount Based on Inability to Pay - (4/30/08) Model notice letter regarding denying reduction in settlement amount based on inability to pay. https://cfpub.epa.gov/compliance/models/view.cfm?model_ID=428 (PDF 43 K)

Interim Guidance on the Ability to Pay and De Minimis Revisions to CERCLA Section 122g by the Small Business Liability Relief and Brownfields Revitalization Act - (5/17/04) Guidance document and four model notice documents on ability to pay and de minimis revisions to CERCLA 122(g) under the 2002 Brownfields Amendments https://www.epa.gov/enforcement/guidance-ability-pay-and-de-minimis-revisions-cercla-section-122g (PDF 150 K)

Issuance of Revised Model CERCLA Section 122(g)(4) De Minimis Contributor Consent Decree and Administrative Order on Consent and New Model Ability to Pay Provisions for Use in De Minimis Settlements (Cover Memo and All Attachments) - (8/12/03) Cover memorandum and four attachments containing model language for de minimis settlement consent decrees and/or administrative orders and ability to pay provisions in de minimis settlements for ability to pay and non-ability to pay parties. https://www.epa.gov/enforcement/issuance-revised-model-cercla-section-122g4-de-minimis-contributor-consent-decree-and (PDF 814 K)

General Policy on Superfund Ability to Pay Determinations - (9/30/97) Transmittal memorandum and policy document addressing general issues that apply to the ATP process and ATP settlements. http://www.epa.gov/enforcement/guidance-superfund-ability-pay-determinations (PDF 1618 K)

Overview of Ability To Pay Guidance And Models - (5/1/95) Identifies and briefly describes documents that are relevant to Superfund ability to pay ("ATP") analyses. https://www.epa.gov/enforcement/guidance-ability-pay (PDF 451K)

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