Interim Enforcement Discretion Policy Concerning “Windfall

0,39

MB

Liens” Under Section 107(r) of CERCLA

32

stron

2557

ID

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

2004

rok

Table of Contents

I. INTRODUCTION 1

II. BACKGROUND . 1

III. DISCUSSION 3

A. EPA's Windfall Lien Enforcement Discretion Policy 3

1. To Perfect, or Not to Perfect . 3

a. Factors That May Lead EPA to Perfect a Windfall Lien 3

b. Situations Where EPA Will Generally Not Seek to Perfect a Windfall Lien . 4

(1) Post-Cleanup Acquisitions . 5

(2) Previous Full Resolution of Potential Windfall . 5

(3) Specific Types of Expenditures . 6

(4) Specific Property Uses 6

(5) Full Cost Recovery From Potentially Responsible Parties (PRPs) 7

(6) Applicability of Enforcement Discretion Policies . 7

2. Settling With Bona Fide Prospective Purchasers . 8

a. EPA's Windfall Lien Valuation Approach 8

b. Determining the Increase in Fair Market Value After A Bona Fide Prospective Purchaser Acquires

the Property . 10

c. Existing CERCLA § 107(l) Liens 11

B. Vehicles for Addressing Windfall Lien Liability Concerns 12

1. Comfort/Status Letters for Situations Where EPA Will Generally Not Pursue a Windfall Lien 12

2. Windfall Lien Resolution Documents for Situations Where EPA is Likely to Pursue a Windfall Lien

14

IV. CONCLUSION . 15

V. DISCLAIMER 15