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U.S. Environmental Protection Agency	08-P-0102
£ %M \ Office of Inspector General	March 17 2008
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%; At a Glance
Why We Did This Review
In February 2006, the Office of
Inspector General recommended
that the U.S. Environmental
Protection Agency (EPA) timely
review Superfund special accounts
to ensure funds are used consistent
with its guidance. We followed up
on EPA's progress in implementing
this recommendation by evaluating
EPA's use of special accounts that
had high available balances or were
at least 10 years old.
Background
Section 122(b)(3) of the
Comprehensive Environmental
Response, Compensation, and
Liability Act (CERCLA)
authorizes EPA to retain and use
funds received in settlements to
address CERCLA response actions
contemplated in the settlement
agreements. EPA retains these
funds in site-specific accounts,
called "special accounts," which
are sub accounts within the EPA
Hazardous Substance Superfund
Trust Fund (Trust Fund).
For further information,
contact our Office of Congressional
and Public Liaison at (202) 566-2391
To view the full report,
click on the following link:
www.epa.aov/oia/reports/2008/
20080317-08-P-0102.pdf
Catalyst for Improving the Environment
Making Better Use of Superfund
Special Accounts in Region 8
What We Found
Region 8 can reclassify, or transfer to the Trust Fund, approximately
$8 million from the special accounts for the Portland Cement site in Utah.
Construction was complete at the site in September 2006. However, in 2005,
the Region identified a portion of the Portland Cement special accounts for
reclassification. The Region said that there will be minimal but
undetermined future costs for site maintenance at Portland Cement. These
costs will be paid from the $8.5 million balance. Region 8 can also
reclassify, or transfer to the Trust Fund, approximately $16,000 from four
other special accounts.
Region 8 had not timely reviewed, reclassified, or transferred any of these
funds because it was a low priority. The Region told us it planned to close or
initiate closing the four other special accounts for approximately $16,000 by
October 2007, but the accounts have not been closed.
After receiving our draft report in February 2008, Region 8 reclassified
approximately $3 million from the Portland Cement special account. The
Region said these funds will be used for cleanup needs at the Libby
Superfund site in Montana and for Superfund records center site-specific
work. The Region documented its plans to reclassify some portion of the
remaining special account balance (about $5 million) after it determines the
amount of funds it will reimburse the State of Utah.
Had Region 8 more timely reclassified these special account funds, cleanup
needs at the Libby Superfund site or at other sites that receive Trust Fund
appropriations may have been met sooner. Once the Region reclassifies the
special account funds reviewed here, more funds will be available to support
other Superfund priorities.
What We Recommend
We recommend that the Region 8 Administrator reclassify, or transfer to the
Trust Fund, $8 million of the Portland Cement special accounts and
approximately $16,000 from the four other interest-only special accounts.
Region 8 agreed with the recommendations, reclassified $3 million from the
Portland Cement account, and said all actions to respond to the open
recommendations will be completed by June 15, 2008.

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