Financial Assurance Strategies in Superfund Resolution Agreements and Enforcement Decisions
On April 6, 2015, the U.S. Environmental Protection Agency (EPA) issued a comprehensive transmittal package of guidance, model language, and sample documents aimed at clarifying financial assurance requirements in cleanup settlement agreements and unilateral administrative orders (UAOs) under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).
The transmittal package includes six new FA sample mechanisms for use in connection with UAOs, as well as updated versions of six previously issued FA sample mechanisms for CERCLA settlement agreements. The new and updated mechanisms cover various financial assurance instruments, including Corporate Guarantee, Financial Test, Letter of Credit, Payment Bond, Performance Bond, and Trust Fund.
The package also includes model language provisions for UAOs addressing Financial Assurance and enforcement/work takeover. A guidance document titled "Guidance on Financial Assurance in Superfund Settlement Agreements and Unilateral Administrative Orders" provides an overview of the financial assurance requirements and best practices for the implementation of these requirements.
A document titled "Financial Assurance and Enforcement/Work Takeover Sections Only for UAOs (April 2015)" focuses specifically on the enforcement and work takeover aspects of UAOs. Additionally, a transmittal memorandum titled "Issuance of CERCLA Financial Assurance Guidance, Updated and New Sample Mechanisms, and Model Language Provisions for Unilateral Administrative Orders" provides a summary of the contents of the transmittal package.
The total size of the complete transmittal package is 2.21 MB and can be accessed through the provided links. The sample FA mechanisms for UAOs can be found in the Cleanup Enforcement Model Language and Sample Documents Database under the Financial Assurance-Orders category, while the samples for CERCLA settlement agreements can be found in the Financial Assurance-Settlements category.
The guidance, model language, and sample documents were transmitted on April 6, 2015, and are available in PDF format. This comprehensive package is expected to provide valuable assistance to those involved in the implementation of financial assurance requirements in CERCLA settlement agreements and UAOs.
