i UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
? WASHINGTON, D C. 20460
JAN % 7 2009
OSWER Directive #9275.1-19
MEMORANDUM
SUBJECT: Superfund Special Accounts Management Strategy
FROM: James E. Woolford, Director . J?j-
Office of Superfund Remediation and Technology Innovation
Office of Solid Waste and EMergency Respons
Marcia E, Mulkey, Director ¦n Cot
Office of Site Remediation Enforcement
Office of Enforcement and Compliance Assurance
( I o
David Bloom, Director _
Office of Budget
Office of the Chief Financial Officer
Raffael Stein, Acting Director
Office of Financial Services
Office of the Chief Financial Officer
C
hcer I
>\\kk—^
Stefan Silzer, Acting Director j
Office of Financial Management
Office of the Chief Financial Officer
TO: Regional Counsel, Regions 1-10
Enforcement Division Directors, Regions 1-10
Superfund National Program Managers, Regions 1-10
Assistant Regional Administrators, Regions 1-10
The Superfund Special Accounts Management Strategy ("Strategy") sets forth EPA's
plan for ensuring that special accounts are successfully used nationwide to support cleanup at
contaminated sites. The goal of the Strategy is to improve the use, management and monitoring
of special accounts. This Strategy will serve as a roadmap for EPA regional and Headquarters
personnel who are responsible for the oversight and management of special accounts. This work
Recycled/Recyclable ¦ Printed with Vegetable Oli Baaed Inks on 100% Recycled Paper (40% posleonsumer)
-------
includes: planning; monitoring; gathering, evaluating, ant! reporting data related to special
accounts, capacity building: training; and coordinating with all interested parlies. EPA has
developed a work plan to undertake the activities outlined in this Strategy < see Attachment A) and
will evaluate and rev he the Strategy after two years.
Through the development and implementation of this Strutcg}. EPA intends to achieve
the following objectives:
• Develop a nationally consistent approach to managing and monitoring special
accounts:
• Maximize the use of special accounts to support site cleanups:
" Knsure the proper tools are available to maximize the use of special account funds;
• Improve coordination and transparency on the use of special accounts; and
¦ Improve Office of Superlund Remediation and Technology Innovation (OSRTI).
Office of Site Remediation Enforcement ('OSRI-ih Office of the Chief Financial
Officer (OOOi. and regional coordination of roles and implementation of policies.
1, Background and Purpose
Special accounts are site-specific, interest bearing sub-accounts within the Superlund
Trust Hind established through settlements and used to fund site-specific work. I lie Agency's
goal for the establishment and use of special accounts is to provide cleanup dollars collected
under an agreement with Potentially Responsible Parties (PRPs) at sites where future response
work remains, which preserves appropriated resources for sites without viable PRPs. Use of
special account resources helps to achieve cleanup without relying solely on IT'A's Superlund
appropriations. Special accounts have been established and used in the Superfund program for
almost two decades. In that time. I'PA has collected more than $2 billion in settlement funds and
has contributed more than $1 billion to the cleanup of hundreds of Superfund sites.' While some
special accounts have a large balance available, the vast majority (77%) have less than $1 million
available.*
As an Agency, we have been successful at collecting settlement funds to be placed in
special accounts and directing these funds towards future response costs. Whereas the Agency's
initial focus was on establishing special accounts and receiving deposits, the growth of special
accounts requires greater focus on managing the funds In particular, the Agency will manage
special accounts to: ensure available special account hinds rather than appropriated resources are
used for response work: reclassify and transfer funds to the general portion of the Superfund
1 rust I und when appropriate; and close out special accounts where funds are no longer required
for work at the site, I: fforts are also underway to improve special accounts data collection to
monitor more effectively the planned and actual uses for these funds.
1 As of November 1, 2008, S71 special accounts have been established for 731 sites,
* Based on II'MS clatu trnm the Financial Data Warehouse on November 7. 2008
l
-------
II. Special Accounts Management Strategy
The establishment, planning, and use of special accounts requires extensive coordination
among the regions and Headquarters. EPA has implemented a number of management practices
to help ensure that the funds in special accounts are managed effectively to support cleanup at
Superfund sites. To improve upon these practices, EPA's management strategy focuses on four
main areas: 1) Coordination and Transparency: 2) Special Account Use and Planning Efforts:
3) Monitoring Special Accounts; and 4) Regional Support, Guidance and Training.
1. Coordination and Transparency
intra-Agency Coordination
EPA has focused attention on improving coordination among the offices responsible for
managing special accounts; the three Headquarters offices (OSRTL OSRE. and OCFO) and the
regions {regional program, enforcement, and finance offices). These EPA offices have
collaborated closely on improvements to data systems, oversight and tracking, financial
management procedures, and responding to inquiries from external parties, such as the Office of
the Inspector General (OIG). Wc crafted and delivered a unified Agency message on the need to
better manage these accounts, making joint presentations to a variety of Agency audiences. This
cooperation has enhanced the understanding of special accounts Agency-wide. These offices
have further reinforced management initiatives through activities such as annual traimrig events,
regular meetings, and monthly conference calls.
OSRTL OSRE, and OCFO Office Directors, along with the appropriate Division
Directors for the Lead Region for Superfund and the Lead Region for Management, will
participate on a Superfund Special Accounts Senior Management Committee ("Committee") that
will centrally oversee the implementation of this Strategy and the management of special
accounts. The Committee will meet at least semi-annually to discuss the current status of the
program and will elevate issues, as appropriate, tor resolution to the Superfund Board of
Directors. OSRT1, as the L.ead Coordinator of the Committee, will convene and organize the
meetings.
OSRTL OSRE, and the OCFO offices will continue to coordinate and have a presence at
Superfund's semi-annual Headquarters and Regional National Policy Manager (Division
Director) meetings. Regional Counsel Branch Chief meetings, National Association of Remedial
Project Manager (NARPM) meetings, and other national meetings. Coordination will also
continue through more frequent intra-agency meetings. For example, general special account
management issues are frequently discussed at OS RE/OS PIT.! bi-weekly meetings. In order to
facilitate work planning and mid-year review sessions. OSRTI and OSRE will continue to meet
frequently to discuss regional data.
The Headquarters offices continue to work to address issues as they arise. For example,
OSRTI and OSRE have agreed to jointly review and provide a coordinated response on regional
reclassification and closeout notification memos as a way to clarify expectations and roles for
3
-------
Headquarters and the regions. OSRTL OSRE, OCR), and the regions will continue to look tot
ways to provide additional clarification on office roles and responsibilities for special accounts.
Responding to External Inquiries
in the last feu years, external interest in the use and management ot special accounts has
increased. EPA has received inquiries from a host of entities, including the (JIG. the Office of
Management and Budget {(>\1B). Congress. I'RPs, and the media, CPA's uoal in responding is
to be timely, inlormalive. and accurately answer the questions posed.
Going forward. OSR 11 will coordinate responses to broad special account related
inquiries from external parties, such as the Government Accountability Office (GAQ) and the
OIG, as appropriate. OCFO will continue to be the lead office to coordinate responses to
inquiries from OMB, the Congressional Budget Office (C'BO). Congressional appropriations
committees, or other external entities as appropriate
EPA will continue its practice ot responding to requests in a time!) and efficient manner
and will coordinate responses across offices, We recognize that external parties can provide
insights into needed changes that improve the program. Each request will be thorough!)
reviewed and responded to as warranted. 11 action is required, the relevant I PA officers) will
implement the action as appropriate.
Reporting Special Account Information Publicly
Publicly reporting information on special accounts will allow external parties to
understand the importance and benefits of these accounts to the Super!lind program. EPA will
report special account intormalion through the appropriate public \enuetsi: however, detailed
planning data are usually inappropriate for reporting publicly as they often contain sensitive
information. Headquarters and regional offices will report information publicly to provide more
transparency without undermining enforcement efforts at Superftmd sites.
Availability of Information on the Intranet and Internet
The Intranet will serve as an important resource for Agency stall working on special
accounts." ft should be the first place staff goe> to quickly locate basic information about special
accounts, guidance, program data, contacts, etc. OSRE and a number of regional offices
currently maintain special accounts Intranet pages, OSRH, 0SRT1 and < K ft > will discuss
coordinating the Agency's special account content on the Intranet, the best way for 0SRT1 and
OCPO 10 provide content pertinent to their respective roles and how1 to link 1 leadquartcrs' and
regional Intranet pages, The OSRE Intranet special account pages have been updated to include
new communication tools and tools for practitioners, such as sample memos for regions to use
when notifying Headquarters of planned funding actions. Also housed on the OSRE special
accounts Intranet page is an annotated bibliography of special account guidance. I his interactive
tool provides a guide lo specific information on special accounts topics with links to relevant
guidance, models, and memos,
special Accounts Intranet content K available at Imp: 'iriiranei.epa.gov'oecawLvwurkiiriHip.'sa
-------
The OS RE internet has been revised to better inform stakeholders of the purpose arid
benefits of special accounts."1 OSRTi and OCFO will explore options for placing pertinent
information on their respective Internet sites and/or coordinating with OSRIi.
These resources will be updated as needed when new data and documents are released
relating io special accounts.
2. Special Account Use and Planning Efforts
Special Account Utilization
The Agency has achieved over a fifty-percent cumulative national utilization rate for
special account funds to date.5 OSRTI. OSRH, and OCFO have worked to understand how the
finds in special accounts arc being used to effectuate site response actions by establishing
procedures for capturing special account planning data and monitoring use. These offices will
continue to work io ensure funds are used efficiently and appropriately (discussed further in the
Monitoring Special Accounts section below). As a result, the Agency will strengthen and
improve resource effectiveness with the ultimate goal of maximizing the human health and
environmental benefits.
Enabling Effective Regional Planning
Regions are expected to plan appropriately for available funds in each special account,
and OSRTI and OS RE generally expect that special account use should be planned within 3
months after account establishment.'* However, there may be circumstances where a longer
timeframe may be warranted for creating and entering the plans in the Comprehensive
Environmental Response, Compensation, and Liability Information System (CHRCLiS) In this
situation, the region should contact OSRTI and OSRE to notify them ot the need for additional
ti me.
By entering and monitoring special account planning data. OSRTI. OSRE, and the
regions will he able to analyze the use of special accounts and ensure special account funds are
being considered as site response actions are being planned. Through these eflorts. the Agency
will be able to better plan and use special account resources on a site level, as well as regional
and nasional levels.
4 Special Accounts Internet content is available at http://www.epa.gov/compl iance/cleanup.'supcrf und/spec-
acct.html.
" In this instance, national special account utilization is determined by dividing the sum of total disbursements and
unliquidated obligations by the sum of total receipts collected, interest accrued, and receipts transferred to the
general portion of the Trust Fund through November 3.2008.
n Planning in the CERCUS Special Accounts Management screen should noi exceed 100% of the available funds
Regional plans for amounts yet to be received should be planned using the AL T code.
S
-------
Data Maintenance
EPA has developed a number of innovations to improve the ! racking of planned uses I br
special accounts. The CTRC1JS Special Accounts Management screen enables regions lo see
ami enter piannirtg data for the use of special accounts in conjunction with response action and
appropriated resource planning Tor individual sites. Throughout the development of the
CERCLIS Special Accounts Management screen, the regions worked closely with OSRT1 and
OSRE to ensure appropriate data fields were created for regions lo effectively enter planning
data for special account funds. Available balances for special accounts are imported from
information maintained in the Financial Data Warehouse (FDW). which allows the regions lo
monitor their account balances and plan the use of resources for ongoing and future site-specific
response activities.
Regions will update special account planning data on a continual basis, as warranted by
site activity.7 The planning data should be updated at least twice a year during iJk work planning
and mid-year review processes, but also more frequently when a milestone is reached (e.g.. an
account is established, funds are received, new planning information is available). During
annual work planning and mid-year review meetings, accounts will be reviewed to ensure
CERCL1S planning is appropriate.
OSRTt and OSRT will periodically review the utility of the special account planning
llelds in CERCLIS to determine if appropriate data have been captured to manag.' the accounts
and assess and report on the valise of special accounts to the Super fund program OSRT1 and
OSRT will also work w itli the regions to ensure the lields in CKRCLhS meet regional needs for
planning site actions and using special account resources.
Quality Control / Quality Assurance
It is crucial to the successful management of special accounts that CERCIJS planning
data are not only current hut also entered completely and accurately. These data must he entered
c insistently across regions to reflect accurately the true nature of special accounts. Through
review and anal v sis of these data, EPA cart ensure that the funds are used lo then fullest
potential, as well as report to interna! and external stakeholders, as appropriate.
At the end of the fiscal year, a designated senior regional manager is responsible for
verifying the accuracy and completeness of the data entered.8 OSRT1 and OSRE will review
with the regions planning data entered into CERCLIS as part of annual work planning and mid-
year meetings to ensure that screens stay up lo date and information is accurate. Where data
improvements are needed. OSRTT and OSRJ: will work closely with the regions to identity and
resolve issues.
To further ensure the quality of the data. OSRT1, OSRE, and OCFO will continue to
conduct training sessions to introduce the new CERCLIS Special Accounts Management screen
' See the August 4.2005, OSKh/OSRTl directive, "Management of Special Accounts" [OSWER Directive 9275.1 -
16J
* See the October 26, 2007, "Superfund Special Account Funds Planning and Data Entry1*
6
-------
and other reporting tools to regional contacts. Regional training will be offered on an annual
basis at venues such as the annual Special Accounts and Cost Recovery Conference, or more
frequently if deemed necessary by GSRTL OSR!'. and OCFO. or if requested by a region, to
e-isure effective planning. An instructional document has been developed outlining bow regions
should enter planning information in the data and eomment fields, as well as the schedule that
s'atTshould follow in entering planning information on ihis screen," i he Superfund Program
Implementation Manual (SP1M) has been updated to reflect the informalion and data
requirements in the CERI.CIS screens, and will be updated further as modifications become
necessary. Regional staff arc also able to clarify procedures by participating in national bi-
monthly special account conference calls, monthly Superfund Information Management
Coordinator (IMC) calls, or through consultation with a Headquarters special accounts contact.
3. Monitoring Special Accounts
Monitoring special account? will achieve the iollowing goals:
1) Ensure that funds are planned to the fullest extent possible;
2) Maximize the use of funds in those accounts; and
3) Ensure both appropriated and special account resources are planned tor and used
appropriately.
Both the Headquarters offices and the regions have a responsibility to monitor specs a i
account use and (TIUUS planning data. In order to fully meet these responsibilities. OSRTI,
(>SRl-:. and OCR) have dedicated at least one person in each office who will be a primary point
ef contact for the regions and who will monitor special account use, planning data, and general
special account issues. In addition, each region has designated ai least one person as a regional
Lead Special Account contact who coordinates across the region on special account management
issues.
Data Monitoring (Man
OSRfl and OSRI: are developing a special account data monitoring plan that outlines the
pnx.es:> for reviewing CfRCfiS special account planning data and determining areas of OSR'11
and QSRE focus for improving the management of special accounts. The plan will help inform
work planning and mid-year reviews, reporting to management, and topics for additional training
end/or guidance. The plan will incorporate the activities outlined below ,
Monitoring Reports
OSRTI, OSRH, and the regions have developed reports for monitoring CERCLIS
planning data, and OCR) has created reports in the OCFO Reporting and Business Intelligence
oot (ORBIT) and developed a query- in H)W for regions to monitor iheir special account
financial transactions. Headquarters and the regions will develop new reports and/or modify
existing reports to monitor effectively CERCL1S planning data and the actual use of special
accounts as needed. The regions will continue to monitor the use of special accounts and enter
" See the June 2008, "Use of CEKCUS Superfund Special Accounts Management Screen Data"
7
-------
planning data into Cf-RCI.IS for ongoing and future site response actions using special account
funds. The regions will work with OSRTI, OSR1L and OCFO as well as other regions to resolve
questions or issues on special accounts.
Annual Regional Work Planning and Mid-Year Reviews
During the annual workplanning and mid-year review processes. OSRTI and OSRE will
pull C HRCLIS data using developed monitoring reports as determined by the SIMM schedule to
serve as the basis for work planning discussions with the regions, OSRTI OSRE and the regions
way alternatively agree to use data pull dates that correspond more closely with work planning
i? ec tings. A CHRCl IS data pull will also take place at the end of the fiscal year to establish a
baseline for planning data lor the 11 seal year and aBmv hPA to report im special accounts,
OSRTI and OSRT may conduct other CHRCi JS data pulls for use during nnd-year reviews., and
o t an ad hoc basis, muy initiate other queries of (he data and conduct additional reviews,
During work planning as well as throughout the fiscal year, OSRTI, OSRE and the
regions will use existing data to discuss how special account existing balances are being used lo
achieve site progress, and whether opportunities exist to use additional funds for response actions
at a site or reclassify or transfer resources to the general portion of the Trust Fund. OSRTI and
OSRE staff will review the planning data entered into CERCL1S in accordance with the special
account daia monitoring plan. OSRTI and OSRK will also put special emphasis on discussing
with the regions funds retained for future risks (e.u.. lack of financial assurance, remedy not
performing as expected, PRP inability lo perform) :md limitations on She use of soecial account
resources identified in OIIROLIS.
OSRTI. OSRE, and the regions will explore other opportunities to engage on special
account issues, such as during regional visits. OSRTI, OSRE, and OCFO will also work closely
with the regions on reclassifications and special account eloseouis to ensure national policies are
implemented consistently This includes discussing with the regions their intentions to reclassify
or transfer resources to the general portion of flu- Nupcrlund Trust Fund prior to such actions
taking place.
4. Regional Support, Guidance and Training
Guidance and Training
The Agency has developed a number of support documents relevant to the establishment,
use. and management of special accounts and has issued guidance and document.-, clarifying roles
and responsibilities of staff. More recently. HI'A has improved access In information related lo
the management of special accounts by placing guidance, training and other materials on the
Intranet, in addition, requirements documents, fact sheets, and program status reports, have been
made available to assist in lite understanding anil management of special accounts, ll is
important that these documents are easily available and up to date.
Review and analysis of special account planning and use data will be used to identify
areas where additional training, guidance, and/or reference materials may be needed.
8
-------
OSR TI. OSR1-, and OCFO will continue to conduct national and region-specific special
isocount training. Fur example, special account training has been provided at the annual Special
Accounts and Cos! Recovery Conference and I he NARPM annual meetings and :s discussed ai
Superfund Branch Chief meetings and Superiund Division Director meetings. These
< pporlunities afford f leadq uurters the ability lo assess the regions understanding of special
account issues and allow regions to clarify special account questions. These dialogues may lead
to the determination that further guidance or input is required on an issue. Headquarters will
fully evaluate the need for documented guidance after each meeting-
Special account planning and use data will also be used to identify areas where additional
t fining, guidance. :md'nr reference materials may be needed.
III, Designation of Points of Contacts
In order to facilitate daily special accounts inquiries from the regions, as discussed
earlier, OSRTJ and OSRH have designated at least one person in each office who will be a
primary point of contact for the regions and will make this information available on the intranet.
Designated OSR Tl and OS RE staff will coordinate with designated OCFO staff as needed.
Regions also have designated points of contact in the program, enforcement, and finance offices,
i he list of special account contacts posted oil the OSRH Intranet will be updated as information
changes. It is crucial that regions and Headquarters offices are able to contact et;ch other
quickly.
IV, Strategy Implementation
Through implementation of the activities outlined in this Strategy, EPA will make
additional improvements in the management of special accounts. GSRE, OSRT1, and OCFO
have developed a worknlan (Attachment A) to undertake the activities outlined in this Strategy
i he workpkn will be dynamic to allow for activities to change as information and priorities
tcgarding special accounts may change. Implementation of this Strategy will be discussed at
semi-annual meetings of the Committee, as well as with regions ai national meetings. OSRH.
OSR 11. and OCR.) will evaluate and revise tins Strategy after two years.
Attachment
cc: Superfund Special Account Contacts, Regions 1-10
Superfund Regional Branch Chiefs, Regions 1-10
Regional Comptrollers, Regions CIO
Regional Budget Officers, Regions 1-10
Debbie Dietrich, OSWER/OHM
John Reeder. OSWEK/PFRRO
Renee Wynn. OSWER/OPM
Elizabeth Souther hind. OSWER/OSR 11
Robin H. Richardson. OSWER/OSR TI
Tracey Stewart OSWER/OSRTI
<)
-------
Mollis Luzeeky. OKCA/OSRE
Diane Kelts, OCl'CVOB
Kevin Britiingham. OCFO/OFM
Connie Hly, OCTO/OFS
Greg Luebbering. OCFO/OFS
------- |