EPA had identified 528 parties responsible for contamination at  this site. While site-specific characteristics generally influence how Superfund  liability is resolved, we identified some key considerations that the parties  routinely take into account: (1) site cleanup costs, (2) the strength of  EPA’s evidence, (3) the number and type of other responsible parties, and  (4) other considerations that agency officials and Superfund experts cited  less frequently as affecting negotiations. Superfund Litigation Decreased Due to a Number of Factors, According to Experts

Superfund litigation—as measured by the number, duration, and  complexity of CERCLA cases—decreased from fiscal years 1994 through  2007, the period for which reliable data were available. EPA’s  expenditures for litigation, which decreased by 50 percent, from more  than $50 million in fiscal year 1999 to $25 million in fiscal year 2007,  provide further evidence of this trend. Changes to EPA’s Enforcement Process Have Led to Less Litigation

Litigation also decreased because, through its Superfund administrative  reforms and other changes to its enforcement process, EPA further  promoted settlements with responsible parties, especially settlements  negotiated prior to filing a case in court. Differences in the Types of Sites on the NPL and Other Factors Make It Difficult to Assess the Status of Superfund Site Cleanups and Program Costs

While the number of sites added to the NPL each year has declined  significantly since the Superfund program’s early years, the types of sites  added in recent years are more costly to clean up, and may not have viable  responsible parties to perform or pay for the work. However, EPA does not  provide the Congress with sufficient information to make decisions about  future funding needs of the Superfund program. The Number and Types of Sites Added to the NPL Have Changed Over Time, but Trends in Sites without Viable Responsible Parties Are Unclear

We identified three factors that could affect EPA’s ability to fund and  conduct site cleanups: (1) the number of sites on the NPL has declined  over time; (2) the types of sites added to the NPL may require greater EPA  expenditures for cleanup; and (3) fewer sites may have responsible parties  who can contribute to cleanup, although EPA data do not clearly indicate  the number of sites without viable responsible parties or the value of the  orphan shares at sites. Other cleanup programs have been used to clean up sites. Mining sites. Within this category, two types of sites were listed in greater numbers. Furthermore, the sites that are not  construction complete may require more complex or costly cleanup  activities. Remedial Actions Have Been Implemented or Are Underway at Most NPL Sites, but the Amount of Work Remaining Is Unclear

Remedial actions to address site contamination have been completed or  begun at most of the sites listed on the NPL since the beginning of the  Superfund program, according to EPA’s data. As of fiscal year 2007,  approximately 70 percent of the 1,397 nonfederal NPL sites had reached  EPA’s construction complete milestone. Conclusions

EPA’s Superfund enforcement actions have generally resulted in  agreements with responsible parties that provided significant value to the  program, particularly in terms of responsible parties’ commitments to  conduct site work. However, EPA’s ability to  continue to recover its costs may be affected by the extent to which  responsible parties are able to pay for site cleanups. Recommendations for Executive Action

To assist the Congress in making decisions about funding the Superfund  program, we are recommending that the Administrator, EPA, assess the  comprehensiveness and reliability of the data the agency collects and,  where necessary, improve the data for the purpose of providing  aggregated information on the following issues:  the status and cost of cleanups at individual sites, particularly complex  and expensive sites;  the extent to which there are viable responsible parties at NPL sites;  and  the potential financial impacts from EPA’s inability to obtain  reimbursement for agency cleanup costs from nonviable responsible  parties. Appendix I: Objectives, Scope, and Methodology

This appendix provides information on the scope of work and the  methodology used to examine the (1) outcomes of the Environmental  Protection Agency’s (EPA) enforcement actions, and the factors  considered by federal and private parties in reaching these outcomes; (2)  trends, if any, in litigation to resolve Superfund liability; and (3) status and  implementation costs of the Superfund program. As a result of our monthly searches of the PACER system, as well as data  provided by the Administrative Office of the U.S. Courts and district court  officials, we compiled a database of 2,281 cases filed under a CERCLA  cause of action in U.S. district courts from fiscal years 1994 through 2007. Cases that included previously negotiated  settlements were substantially shorter, on average, than other cases.
Why GAO Did This Study

Under the Superfund program, the Environmental Protection Agency (EPA) places the most seriously contaminated sites on the National Priorities List (NPL). EPA may compel site cleanups by parties responsible for contamination, or conduct cleanups itself and have these parties reimburse its costs. The program is funded by a trust fund, which is largely supported by general fund appropriations. GAO was asked to examine (1) EPA's enforcement action outcomes and the factors parties consider in reaching these outcomes; (2) any trends in litigation to resolve Superfund liability; and (3) the program's status and costs. GAO obtained and analyzed Superfund program data from EPA, as well as data on Superfund litigation from cases filed in U.S. district courts. GAO also interviewed EPA officials and other Superfund experts

What GAO Found

Through fiscal year 2007, 80 percent of EPA's completed enforcement actions resulted in agreements with responsible parties, and these actions yielded an estimated $29.9 billion in recovered costs, work commitments, and other results. While most of this value came from work commitments, responsible parties more often agreed to reimburse EPA for its cleanup costs than to conduct site work. EPA, the Department of Justice, and responsible parties make settlement decisions on the basis of site-specific characteristics, but generally also take into account (1) site cleanup costs, (2) the strength of the evidence of a party's liability for site contamination, and (3) the number and types of responsible parties identified, among other considerations. Superfund litigation--as measured by the number, duration, and complexity of cases--decreased from fiscal years 1994 through 2007, the period for which data were available. Over this period, the number of Superfund cases filed annually in U.S. district courts decreased by almost 50 percent. Also, litigation in federally-initiated cases decreased as settlements prior to filing cases in court were reached more often, shortening court time. Furthermore, cases became less complex as fewer defendants were involved. Litigation costs can be substantial, according to experts, and such costs may have decreased as a result of these trends. Litigation decreased because (1) fewer sites were listed on the NPL, and, as cleanups progressed, fewer sites required cleanup and parties had less reason to go to court; (2) EPA promoted settlements with responsible parties; and (3) the courts clarified several legal uncertainties. As of fiscal year 2007, EPA or responsible parties completed construction of remedial actions at about 70 percent of the nonfederal NPL sites, with program appropriations averaging about $1.2 billion annually. However, GAO identified Superfund program trends that make it difficult to predict future program costs. The number of sites added to the NPL each year has declined; EPA added over 400 sites in fiscal year 1983, but only 20 sites a year, on average, for fiscal years 1998 through 2007. The types of sites have also changed, as mining sites--among the most expensive sites to clean up--have been added to the NPL in greater numbers. At the same time, because of limitations in EPA's data, the extent to which NPL sites do not have viable parties to assist with cleanups and how this may impact EPA's cost recovery efforts are unclear. Further, while remedial actions have been completed or are underway at most NPL sites, data limitations make it difficult to quantify the amount of work remaining. Also, NPL sites that have not yet been cleaned up may be more complex and expensive. Finally, program appropriations and expenditures are declining, while EPA's costs for individual sites are increasing. However, EPA does not provide the Congress with sufficient information to make program funding decisions. For example, EPA does not provide aggregated information on the status and cost of work at sites not yet cleaned up or the extent to which it cannot identify viable parties. As a result, it is unclear how much funding for future cleanup activities will have to come from trust fund appropriations rather than from responsible parties.