Document Overview

Model is for use by EPA and DOJ staff when negotiating CERCLA judicial consent decree cashouts with qualifying peripheral parties based on ability to pay. Further guidance on peripheral party cashouts is contained in Part II(B)(3) of 12/22/1998 Section 122(h) Guidance available below.

Supporting Documents

Revisions to 2009 ARC Memo and Issuance of Revised CERCLA Past Cost, Peripheral, De Minimis, De Micromis, and Municipal Solid Waste Settlement Models
Date: 09/26/2014
Memorandum announcing the issuance of 15 model documents that comprise all of the CERCLA model documents in which the primary form of consideration to be provided by potentially responsible parties (PRPs) is a “payment,” rather than performance of response action, and that the Agency is revising, for purposes of all EPA settlement models issued under CERCLA, certain language included in the March 16, 2009 “ARC Memo.”

Guidance on Administrative Response Cost Settlements under Section 122(h) of CERCLA and Administrative Cashout Settlements with Peripheral Parties under Section 122(h) of CERCLA and Attorney General
Date: 12/22/1998
Corrected copy of Sept. 30, 1998 Guidance on Administrative Response Cost Settlements under Section 122(h) of CERCLA and Administrative Cashout Settlements with Peripheral Parties under Section 122(h) of CERCLA and Attorney General Authority guidance document containing missing subsection II(C). This Section 122(h) guidance explains that ability to pay parties are appropriate candidates for peripheral party cashouts (in Subsection II.B.3.a), outlines the basic terms of such settlements (in Subsections II.B.3.b and II.C), and explains when such settlements should be embodied in a judicially-approved consent decree rather than in an administrative settlement (in Subsection II.B.3.a). Appendices A, B and C are now superseded.

General Policy on Superfund Ability to Pay Determinations
Date: 09/30/1997
Transmittal memorandum and policy document addressing general issues that apply to ability to pay (ATP) process and ATP settlements.

Revision History

Updated payment and electronic notice requirements
03/15/2023

• ¶ 6 – Changed payment requirement to “Fedwire Electronic Funds Transfer (EFT)” and deleted pay.gov URL.
• ¶ 12.c – Updated payment instructions for stipulated penalties in second sentence to add after pay.gov “using the ‘EPA Miscellaneous Payments Cincinnati Finance Center’ link, including references to the Site/Spill ID and DJ numbers listed in” and deleted “in accordance with the procedures under”. Added note about the use of alternatives to pay.gov for making payments and contacting CFC if SDs cannot make a payment using the pay.gov system.
• ¶ 41 – Deleted “(if that option is provided below) or by regular mail” in last sentence of the paragraph. Removed DOJ and EPA mailing addresses. Added “address” after email for EPA and SFAs notice.

Updated payment language for stipulated penalties and minor edit to CERCLA definition
07/29/2021

• ¶12.c - Revised to update stipulated penalty payment instructions.
• Amended CERCLA definition to add USC citation, after “as amended”

Updated payment language and made minor formatting changes throughout the document
12/10/2020

• ¶1.A – Added “as amended” after CERCLA
• Amended the following definitions:
• CERCLA – removed USC citation, added “as amended”
• EPA – removed “and its successor departments, agencies, or instrumentalities
• Paragraph – grammar update
• Note following ¶5 – deleted
• ¶6 – Revised payment language to streamline payment instruction to only allow for payment via https://www.pay.gov.
• Note following ¶6 (payment by check) - deleted
• ¶8 – Updated notice of payment language and removed language regarding payment by mail.
• ¶12.c – Updated payment information for stipulated penalties section.

Conforming changes and formatting
12/16/2016

• The changes outlined below are the result of model documents issued 9/29/2016:
  • CD updated with conforming changes in accordance with Issuance of ="https://www.epa.gov/enforcement/guidance-2015-cercla-rdra-uao-and-sow">Revised Model Remedial Design/Remedial Action Unilateral Administrative Order and New Statement of Work: ¶ 30 – delete paragraph requiring settling owner to reach access/use restriction agreement with transferee; and ¶ 36 – clarify CBI claim process.

URL Review
02/02/2016

• Reviewed and updated existing Agency URLs throughout the document – pp. cover, 3, 6, 13-14

Update URL
11/23/2015

• Updated URL of Superfund Interest Rate Web page in “Interest” definition of model.

Modification to paragraphs 5 and 17
02/10/2015

• Optional installment payment language in paragraph 5 (Payment of Response Costs) of this model was amended to describe more accurately how interest is calculated on delayed payments. Changed from “Each installment payment shall also include an additional sum for Interest accrued on the unpaid portion of the principal amount calculated from the 30th day after the Effective Date until the date of the payment.” to “Each installment payment shall also include an additional sum for Interest accrued on the unpaid portion of the principal amount calculated from the date of the prior payment until the date of the payment.” Paragraph 17 of this model and the note immediately preceding it were deleted because it inaccurately suggested that a federal CERCLA lien may be released after the sale of the property on which it has been filed.

Formatting change
11/25/2014

• Paragraph 33.a of this model was corrected to reformat the paragraph from an ordered line layout to a single paragraph.

Top of page