Cleanup Enforcement

Special accounts are an important part of the Superfund enforcement program and play a critical role in achieving cleanup of contaminated sites nationwide.  

EPA retains money received through settlements with potentially responsible parties (PRPs) in these site-specific accounts to conduct planned future cleanup work at the site based on the terms of the settlement agreement. 

Over the last two decades, more than $2 billion have been deposited in special accounts through PRP settlements.  More than $1.1 billion of those settlement dollars have been spent on Superfund site cleanups and the balance is planned to be used for ongoing or future Superfund cleanup work.

• What are Special Accounts?
• Benefits of Special Accounts
• How are Special Accounts Set Up?
• How are Special Accounts Used?
• Special Accounts in the Context of the Superfund Enforcement Program
• Managing Special Accounts
• Special Account Cleanup Success Stories

---

What are Special Accounts?

Special Accounts are PRP-funded, site-specific, interest-bearing accounts housed within Superfund’s "Hazardous Substances Superfund (Trust Fund)."

Superfund authorizes EPA to hold and use funds received in settlement with a potentially responsible party to carry out that settlement agreement.  EPA uses the money deposited in special accounts for cleanup activities at the site for which it received the money.

---

Benefits of Special Accounts

Special accounts provide three principal benefits:

1. Help maximize potentially responsible party-funded cleanups,
2. Serve as a settlement incentive for potentially responsible parties to perform work, and
3. Preserve government resources for use at sites with no viable potentially responsible parties.

EPA is achieving successful cleanups at sites across the country with special account funds, as demonstrated by EPA's Special Account Cleanup Success Stories.

Top of page

---

How are Special Accounts Set Up?

EPA can deposit funds from a settlement with a potentially responsible party into a special account under the terms of the settlement if future work is planned at that site.  The funds received in settlement can be money intended for future work at the site or money received to reimburse EPA for its costs at the site.  The special account is established as a sub-account within the Superfund Trust Fund – a "special" account.

EPA often establishes special accounts when certain PRPs "cash out" their liability at a site rather than perform the cleanup work. EPA deposits the PRP's cashout money into a special account. The agreement specifies how the money can be used. EPA's policy is to use special account funds at the site for which the payment was made. For this reason, special accounts are often referred to as "site-specific special accounts."

Top of page

---

How are Special Accounts Used?

EPA may use the funds from special accounts

• To reimburse parties performing the work,
• To pay for past or future EPA costs, or
• For other needs at the site specified in the settlement agreement.

Cost recovery payments not deposited into site-specific special accounts are deposited directly into the Superfund Trust Fund.

Top of page

---

How do Special Accounts Promote Enforcement First?

Through its use of special accounts, EPA is pursuing its "enforcement first" policy -- ensuring responsible parties pay for cleanup, so that the Trust Fund is conserved for sites where no viable PRPs exist.  As a result, special accounts not only provide site-specific cleanup funds, but also incentivize responsible parties to perform work, preserving scarce government resources.

Since 1989, EPA has achieved great success in using settlement dollars to facilitate cleanup through the use of special accounts.  These funds provide a significant source of funding within the Superfund program, providing needed cleanup dollars at many sites that otherwise may not have received funding absent EPA’s enforcement efforts.

EPA policy and guidance documents on special accounts are available from the special accounts category of the Superfund cleanup policy and guidance document database.

Top of page

---

Managing Special Accounts

EPA has taken positive steps across the Agency to improve the management of special accounts, such as developing management guidance and training staff. 

In February 2006, EPA’s Office of Inspector General issued a report titled EPA Can Better Manage Superfund Resources (PDF) (42pp, 452K, About PDF). The report included recommendations about the use and management of Special Accounts.  In response, EPA agreed to continue to improve its ongoing efforts to monitor the use of special accounts and implement special account guidance.  For example, EPA has developed new planning and reporting tools to improve management of these accounts, enhanced database capabilities to facilitate data entry and analysis, and worked to educate stakeholders about the benefits of special accounts.

Top of page

---

Special Account Cleanup Success Stories

Special accounts have been a crucial funding source at sites across the country.  Without these PRP-funded accounts, cleanup may have been delayed for months or even years. 

The following five sites highlight EPA’s successful use of special accounts.

• Sharon Steel Corporation Site in Lake County, Utah.  Settlements with potentially responsible parties at the site financed the entire $60 million dollar cleanup.  The site is now being re-developed under the Agency’s Ready for Reuse program.  Because of the special account, EPA avoided spending Trust Fund dollars (and state funds) at that site.  The remaining expense for operation and maintenance is being performed by the State of Utah, but financed from the special account.  More information on the Sharon Steel Corporation Site.

• American Chemical Services Site in Griffith, Indiana.  EPA agreed to provide over $20 million to a group of potentially responsible parties performing a $65 million dollar cleanup.  After ensuring that the responsible parties would not receive any undue benefit, EPA offered special account funds received in earlier settlements as an incentive to parties that were willing to perform more than their fair share of the cleanup.  More information on American Chemical Services Site. 

• New Bedford Harbor Site in New Bedford, Massachusetts.  EPA used over $78 million settlement dollars to dredge contaminants.  Use of these dollars saved scarce federal and state resources.  More information on New Bedford Harbor Site. 

• Wayne Interim Storage Site in Wayne, New Jersey.  EPA has spent more that $30 million in settlement funds to remove contaminated soils and debris.  More information on Wayne Interim Storage Site (PDF). (4pp, 15K, About PDF)

• Pacific Sound Resources Site in Seattle, Washington.  Approximately $10 million in settlement dollars has been used to fund the contaminated sediment cleanup.  More information on Pacific Sound Resources Site. 

Top of page