X, UNITED STATES ENVIRONMENTAL PROTECTION AGENCY | WASHINGTON, D.C. 20460 ^t PRCrtt0 August 4, 2005 OSWER Directive 9275.1-16 MEMORANDUM SUBJECT: Management of Special Accounts FROM: Susan E. Bromm, Director /s/ Office of Site Remediation Enforcement (OSRE) Michael B. Cook, Director /s/ Office of Superfund Remediation & Technology Innovation (OSRTI) Lorna M. McAllister, Director /s/ Office of Financial Management Office of the Chief Financial Officer (OCFO) TO: Superfund Division Directors, Regions I - X PURPOSE The purpose of this memorandum is to promote tracking and management of special account funds used for Superfund cleanups. In response to recommendations of the 120-Day Study, EPA agreed to issue guidelines to improve the management and use of special accounts. This memorandum provides a framework for managing special accounts and describes a long- term process for improved management of and reporting of special account data. An essential element in the management of special accounts is to determine how funds have, and will, be used. Managing and tracking the use of special account funds will assist internal management and facilitate reporting to outside stakeholders. Each EPA Region should provide to EPA Headquarters certain interim information (as described in this memorandum) on the management of its special accounts by August 30, 2005. This submission will provide EPA Headquarters with the special accounts information that is necessary in order to respond to Congressional, OMB, and OIG inquiries. For the long-term, this memorandum outlines a new framework for entering and maintaining special account information in CERCLIS and the development of a Special ------- Accounts Management Report (the SAM Report), which is a new reporting tool that will draw special accounts data from CERCLIS and the Financial Data Warehouse. Each EPA Region should provide comments to EPA Headquarters regarding the SAM Report template by August 30, 2005. FRAMEWORK FOR MANAGING SPECIAL ACCOUNTS EPA maintains more than 500 Superfund special accounts, which constitute a significant source of funding within the Superfund program. It is essential to maximize the use of these resources, not only to reserve appropriated resources for Superfund sites that do not have the benefit of a special account, but also to identify opportunities to return special account resources to the Trust Fund when they are no longer needed at the site. Although regional efforts to manage special accounts have been quite successful, there has been no systematic approach for capturing and reporting decisions concerning the use of special accounts, or for determining when special account resources may be returned to the Trust Fund. Under current EPA policy, regional staff from the program, counsel, and finance offices coordinate decision making regarding the establishment, management, and use of special accounts. The involvement of all three offices is critical to ensure that these settlement proceeds are used to effectuate cleanup. For example, the program is primarily responsible for determining when to use a special account to finance cleanup efforts. Counsel is responsible for ensuring the special account funds are available as a settlement incentive, and that the uses of such funds are consistent with the agreement terms under which they were received. The finance office ensures that the funds are available and used in a manner consistent with EPA policy. REQUEST FOR INTERIM INFORMATION While the SAM Report and CERCLIS infrastructure are being established, each EPA Region should provide interim information on its special accounts so that EPA Headquarters may respond, in the short term, to inquiries regarding the use of special accounts. EPA Headquarters will send each EPA Region an Excel spreadsheet with pre-populated account- specific data for each special account Each EPA Region should fill in the remaining information directly onto the spreadsheet for each site and submit the spreadsheets to Bob Polin, OSRE, by August 30, 2005. Below is a sample of the form that will be provided to each EPA Region for each special account. ------- Interim Special Accounts Information 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Field Name Special Account Number EPA Site ID CERCLIS Site Name SSID Language That Defines the Use of the Account Remaining Account Balance Amount Retained as Settlement Incentive Projected Use FY 20062 Projected Use FY 2007 Projected Use beyond FY 2007 Data Provided by HQ Provided by HQ Provided by HQ Provided by HQ [To be provided by the Regional Counsels]1 Provided by HQ [Dollar amount to be provided by the Regions] Action: [CERCLIS code(s) to be provided by the Regions] Action: [CERCLIS code(s) to be provided by the Regions] Action: [CERCLIS code(s) to be provided by the Regions] Planned Obligation: [Dollar amount(s) to be provided by the Regions] Planned Obligation: [Dollar amount(s) to be provided by the Regions] Planned Obligation: [Dollar amount(s) to be provided by the Regions] 1 See Paragraphs 55 - 64 of the 2001 Revised Model RD/RA Consent Decree for the model language regarding the use of special accounts. If the model language was used, simply indicate "Model Language used" in this field. If the Model Language was not used, please identify in this field any deviations from the model language regarding the use of special account funds. 2 For FY 2006, FY 2007 and beyond, Regions should insert each applicable CERCLIS response action code (e.g. PA, SI, RI, FS, CO (RI/FS), RD, RA, RV, BD (PRP RI/FS), BE (PRP RD), BF (PRP RA), BB (PRP Removal), SI, OM, etc.) in the "Action" field and should insert the accompanying dollar amount for each activity in the Planned Obligation field (e.g. "Action: RI/FS" and Planned Obligation "$500,000"). ------- SPECIAL ACCOUNT DATA MANAGEMENT Design of the SAM Report The SAM Report is a tool under development that will provide a centralized source for viewing, via the Web, information about sites with special accounts and for reviewing regional decisions concerning the use of these accounts. A draft template, which illustrates the type of information intended for the report, is attached at the end of this memorandum. Please review the template for the report for its usefulness and provide any comments by August 30, 2005, to Bob Polin, OSRE. By using the SAM Report, and keeping its information updated, each EPA Region will be able to more quickly determine and explain whether special account resources are available for use, the purposes for which the resources may be used, and opportunities for reclassification or transfer of resources back to the Trust Fund. The SAM Report will also contain data that can be used to describe how special accounts have been used in support of site cleanup. Since most response actions are generally not completed within a year-long period, each EPA Region should modify its planning practices to update special account status information regularly and should review the SAM Report at least annually. To ensure that the SAM Report will provide up-to-date information and can be used as an effective management tool, each EPA Region should consider updating special account information at the following decision points: (a) creation of a special account, (b) a decision to use the special account funds to finance a response action (e.g., remedial design, remedial action), (c) creation of a PRP disbursement account, (d) disbursement from the special account, (e) certification that the site is construction complete, (f) reclassification of special account funds, (g) transfer of special account funds to the Trust Fund, and/or (h) closure of the special account.3 Most of the programmatic and financial information for the SAM Report is currently available from CERCLIS, IFMS or from reports that the EPA Regions or the Cincinnati Finance Center can generate. Other information, such as specific settlement language defining authorized uses of the special account, will require new input from the EPA Regions. The intention is to expand CERCLIS to allow for the entry of any "new" data that are not currently collected through a pre-existing national database. CERCLIS Data and the SAM Report Planning data for the use of special account resources is one of the most important elements of the information to be presented in the SAM Report. Planning information such as planned start and complete dates, and planned obligation data that account for the totality of the special account balance (less payroll and resources to be returned to the Trust Fund) need to be 3 By the end of fiscal year 2005, EPA Headquarters will provide a memorandum outlining additional guidelines for reclassification and processes for special account closure. ------- entered into CERCLIS and maintained on a regular basis. As part of the annual Regional workplanning process ("FY 2006 Superfund Response and Enforcement Work Planning," May 31, 2005, OSWER Directive 9200.3-34), OSRTI requested that the EPA Regions enter into CERCLIS data regarding planned special account obligations for FY 2006 by July 8, 2005. Regions should consider these data when completing the attached spreadsheets for FY 2006. Each EPA Region should enter planned obligation data for the use of all available special account funds for each site for a 10 year period commencing with FY 2006. Due to potential uncertainties regarding the future use of these funds, EPA Regions should use the ALT planning code until reimbursable authority for use of these resources is approved. Although most information in the SAM Report is already captured in CERCLIS, IFMS, or other databases, the SAM Report also will contain information that is not currently available in any database format. The list below highlights new fields to be created in CERCLIS to collect this information4: Draft Data Fields to Be Created in CERCLIS New CERCLIS Field Settlement Language that Defines the Use of the Special Account Date of Last Account Planning Analysis Amount in Special Account Being Retained as Settlement Incentive Amount in Special Account that is Currently Unobligated Amount of Resources and Purposes for Resources to Be Used Beyond 10 Years Total Amount of Resources Projected to be used for Payroll and Travel Amount available for Re-classification Amount available for transfer to the Trust Fund Explanation of Requested Information Summarize any differences from the "model" language regarding the use of special account funds. TBD TBD To be downloaded from Cincinnati Finance Center database TBD TBD TBD TBD 4 The wording of these fields may change and other fields added in order to conform to existing CERCLIS parameters. However, this chart identifies the scope of the information tracking that will be added to CERCLIS. ------- EPA Headquarters intends to work closely with the Superfund Information Management Coordinators and Superfund Budget Coordinators over the next several months to define more precisely the CERCLIS data requirements for these new fields. SCHEDULE EPA Headquarters' goal is to create the new special accounts tracking fields in CERCLIS and finalize the format of, and access to, the SAM Report by December 31, 2005. Upon integration of the new fields, EPA Headquarters will notify the EPA Regions and ask that they populate the new fields by March 31, 2006. The following schedule reflects the plans for this entire project: Implementation Schedule Date August 30, 2005 August 30, 2005 December 3 1,2005 March 3 1,2006 May 3 1,2006 Action EPA Regions return completed forms to Bob Polin, OSRE EPA Regions provide comments on SAM Report template to Bob Polin, OSRE EPA Headquarters completes development of CERCLIS fields and SAM Report EPA Regions complete entry of remaining data into CERCLIS EPA can generate a SAM Report for each Special Account CONCLUSION Active planning for the use of special account funds throughout the life-cycle of a Superfund site will promote the effective management of special accounts. By establishing the SAM Report and regularly updating the underlying information it contains, EPA will be able to more actively and effectively (a) manage each special account, (b) manage and assess the special accounts program as a whole, (c) generate insightful reports and (d) provide special accounts information to other interested parties. PURPOSE AND USE OF THIS DOCUMENT This guidance is a reference document for issues involving management of special accounts and should be read in conjunction with all prior special account guidance documents. This guidance and any internal procedures adopted as a result of its implementation is intended exclusively as guidance for employees of the EPA. It is not intended and cannot be relied upon to create any rights, substantive or procedural, enforceable by any party. EPA reserves the right to act at variance with this document and change it at any time without public notice. ------- If you have any questions related to issues presented in this guidance, please contact Bob Polin, OSRE (202-564-4292), Joan Harrigan-Farrelly, OSRTI (703-603-8749), Leslie Kelley- Huffman, OCFO (policy) (202-564-4805), or Connie Ely, OCFO (reporting) (513-487-2075). CC: Office of Regional Counsel Superfund Branch Chiefs Regional CERCLA Program Branch Chiefs Regional Finance Office Branch Chiefs OSRTI Branch Chiefs OCFO Branch Chiefs OSRE Branch Chiefs ------- ATTACHMENT 1 Special Accounts Management Report Template A. 1. 2. 3. B. 1. 2. 3. C. 1. 2. 3. 4. D. 1. 2. 3. 4. 5. 6. REGION SPECIAL ACCOUNT SITE SUMMARY Account Information Special Account Name: Special Account #: Superfund Site Name: Language that Defines the Use of the Account: Date Established: EPA SSID: Site ID: Source Document: Deposit Information Deposits (non-interest) Interest Deposits (annual) Total Deposits Date(s): Date(s): Amount(s): Amount(s): Amount: Historic Use Of Special Account Action(s) Funded by Account Total Amount Net Obligated: Reclassification(s) : Transfer(s) to Trust Fund: CERCLIS Action: Net Amount Obligated: Total Unliquidated Obligations: Amount: Amount: Date: Date: Projected Uses Of Special Account (should total to Account Balance) Date of Last Account Planning Analysis: Amount to be Retained as Settlement Incentive for PRPs: Account Balance (including interest and commitments): Projected CERCLIS Actions (each year through 10 years) Projected Future Use of Account Beyond 10 Years Action: Action: OU: Start Completion Planned Amounts: Date: Date: Obligation BFYs: Amount: Projected Total Amount to be Used for Payroll and Site Travel: ------- REGION SPECIAL ACCOUNT SITE SUMMARY 7. 8. 9. E. 1. F. 1. Projected Amount Available for Reclassification: Projected Amount Available for Transfer to the Trust Fund: Projected Date for Reclassification: Projected Date for Transfer: Projected Date of Closure of Special Account: Status of Clean-Up Clean-Up Status by OU OU: Cleanup Status: Contact Name: Title/Office: Telephone: ------- |