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Special accounts are site-specific, interest-bearing sub-accounts typically placed within the Hazardous Substance Superfund (Trust Fund). The funds placed in these special accounts are derived from settlements between EPA and potentially responsible parties (PRPs) and can be used to pay for response work at a particular site. Such settlements are often with small volume contributors (de minimis parties) or with parties that have limited financial resources. The legal authority for establishing special accounts is found in CERCLA Section 122(b)(3).
What can special accounts be used for?
EPA may use special account funds to pay for response actions at a specific site. Such response actions may include: (1) actual cleanup activities; (2) payment of EPA oversight costs;(3) potential work takeover by EPA if the PRP fails to perform work; (4) cleanup of additional operable units (OUs) at the site;(5) pursuit of PRPs who have not settled with EPA; (6) costs that were underestimated or remedy failures; and (7) reimbursement payments to PRPs after they perform a response action for that site under the terms of a settlement agreement.
Under what circumstances may a PRP receive special account funds?
A PRP may receive funds from a special account after performing a response action pursuant to a settlement agreement with EPA. After completing all work or significant portions of the work, the PRP will generally be required to submit to the appropriate regional program office a certification of the work completed and a summary of costs incurred for the work. The PRP may be reimbursed only for the costs of work covered by the settlement agreement and not for legal fees or other expenses.
What must be included in a work settlement agreement to allow the use of special account funds to repay PRPs?
To authorize the disbursement of special account funds to a PRP, the settlement agreement between EPA and the PRP will generally include terms that: (1) identify the special account;(2) provide that the PRP submit a certification and a cost summary; (3) set the timing and amount of special account disbursements; (4) list the circumstances under which EPA may terminate special account disbursement; (5) direct the PRP to repay amounts received from the special account, with interest, where EPA has terminated disbursements; and (6) require the PRP to relinquish its right to pursue claims against the United States (i.e., a covenant not to sue).
What happens to funds remaining in a special account?
When site risks no longer necessitate that amounts remain in the special account, any remaining special account funds are transferred to the Trust Fund. Typically, one year after construction completion of the site, EPA regions will determine if the special account should be closed and transfer any remaining special account funds to the Fund.