EPA established the Superfund  program to carry out these responsibilities. EPA’s Enforcement Process for Superfund Site Cleanup

EPA may enter into agreements with PRPs for those parties to conduct  cleanups, compel site cleanups by PRPs, or conduct cleanups itself and  seek reimbursement for its costs from those parties. The IG stated that this action plan should  include, among other things, (1) a process for ensuring completed  CERCLIS reports with accurate special accounts data to manage the  program and improve performance; (2) an annual planning process— including a determination that regional special account funds will be used  consistent with the General Hierarchy—to aid in monitoring special  accounts; (3) development of headquarters and regional controls that  include follow-up to make sure planned or requested uses (e.g.,  reclassifications and transfers to the Trust Fund of special account funds)  were conducted; and (4) establishment of guidance and policy that  addresses the proper application and amount of special account funds  that should be reserved for future use. About Half of the $3.7 Billion that EPA Has Collected in Special Accounts Is Available for Future Superfund Cleanup

From fiscal year 1990 through October 2010, EPA collected from PRPs  over $3.7 billion that it placed in 1,023 special accounts. Nearly half of  these funds—$1.8 billion—are still available to be obligated for future  Superfund cleanup; and the remaining funds—$1.9 billion—have already  been obligated, but not all of these obligated funds have been  disbursed.regions reclassified about $131 million from 96 special accounts to pay  for previous EPA site expenditures, transferred about $14 million from 39  accounts to the general portion of the Trust Fund, and closed 76  accounts. As of October 2010, EPA had plans to obligate 99.8 percent of the $1.8  billion available in special accounts, according to our analysis of EPA  CERCLIS data. However, EPA regional officials told us that the special account  planned obligations are estimates rather than commitments. EPA Has Implemented Processes and Policies in Recent Years to Better Monitor and Manage Superfund Special Accounts

In response to the IG’s findings and recommendations,officials’ own recognition that the agency needed to provide better  oversight of the special accounts process, EPA has implemented the  following processes and policies in the last few years to better monitor  and manage special accounts: (1) processes to better plan the use of  special account funds, (2) increased oversight of special accounts by  designating a national special accounts coordinator, and a Special  Accounts Senior Management Committee, and (3) strategies and  guidance on how to plan for using and monitoring special accounts. That is, it established a section in  CERCLIS—referred to as the Special Account Management Screen (or  planning screen)—that enables EPA regions to see and enter special  account planning data into specific data fields and create reports so that  both EPA headquarters and regional officials can monitor the special  account balances against planned obligations for ongoing and future site- specific response activities. This headquarters staff person—the national special accounts  coordinator—conducts annual and midyear reviews and holds  discussions with regional staff to evaluate regions’ plans to allocate  special account funds, among other things. It meets semiannually to provide overall management  oversight and monitor the status of special accounts. At the same time, it also issued a model memorandum for  transferring funds from a special account to the Trust Fund and closing  out a special account. Agency Comments and Our Evaluation

We provided a draft of this report to EPA for review and comment. EPA  provided technical comments that we incorporated into the report, as  appropriate. Appendix I: Objectives, Scope, and Methodology

This appendix provides information on the scope of the work and the  methodology used to (1) describe the status of special accounts— including balances, locations, and recent and planned uses—of  Superfund special accounts and (2) examine the extent to which the  Environmental Protection Agency’s (EPA) headquarters and regions are  implementing processes and policies to improve the monitoring and  management of Superfund special accounts. We also analyzed  documents and interviewed officials from EPA’s Office of Inspector  General (IG) regarding their 2006 and 2009 reports on EPA’s  management of special accounts.
Why GAO Did This Study

Under the Superfund program, EPA has the authority to enter into agreements with potentially responsible parties for them to conduct a cleanup at hazardous waste sites or compel potentially responsible parties to do so. EPA can also conduct cleanups itself and then seek reimbursement. EPA is authorized to retain and use funds received from settlements with these parties in interest-earning, site-specific special accounts within the Trust Fund. These accounts provide resources in addition to annual appropriations to clean up sites. The number of accounts grew slowly until 1995 when EPA encouraged their greater use. After 1995, their number and dollar value increased. EPA headquarters is responsible for overseeing its regions management of special accounts. In two reports issued in 2006 and 2009, the EPA IG made recommendations to EPA to better manage these accounts.
As requested, this report examines the (1) statusthat is, balances, locations, and recent and planned usesof Superfund special accounts, and (2) extent to which EPAs headquarters and regions have implemented processes and policies to improve the monitoring and management of these accounts. GAO analyzed EPA Superfund program data, guidance, and strategies, and interviewed EPA officials.
GAO is not making recommendations in this report. GAO provided a draft of this report to EPA for review and comment. EPA provided technical comments that were incorporated into the report, as appropriate.

What GAO Found

From fiscal year 1990 through October 2010, the Environmental Protection Agencys (EPA) 10 regions collected from potentially responsible parties almost $4 billion in funds that were placed in special accounts. Nearly half of these funds are still available to be obligated for future Superfund cleanup; the remaining funds have already been obligated, but not all of these obligated funds have been disbursed. According to GAOs analysis of EPA data, EPA has plans to obligate almost all of the available funds in special accounts over the next 10 years. However, EPA regional officials told GAO that special account funds that are planned to be obligated are estimates rather than commitments, and the planned use of funds often changes as site circumstances warrant. As of October 2010, of the $1.9 billion funds that EPA had obligated for Superfund cleanup expenses, $1.6 billion had been disbursed.
According to GAOs review of EPA documents and interviews with agency officials, EPA has taken steps, including implementing strategies and guidance, in the last few years to better monitor and manage special accounts. EPA took these steps in response to the EPA Inspector Generals (IG) findings and recommendations, as well as EPA officials own recognition that the agency needed to provide better oversight of the special accounts process. These steps include the following:
processes to better plan for the use of special account funds by adding a screen in the agencys Superfund database that enables EPA regions to enter special account planning data into specific data fields and create reports, so that officials can monitor the special account balances against planned obligations for ongoing and future site-specific response activities;
increased oversight of special accounts, including designating a national special accounts coordinator who, among other things, conducts annual and midyear reviews and holds discussions with regional staff to evaluate their plans to allocate special account funds, and establishing a Special Accounts Senior Management Committee that meets semiannually to provide overall management oversight and monitor the status of special accounts; and
strategies and guidance on how to plan for using special accounts, including an agencywide strategic plan, overall guidance for the regions on the proper use and planning of special accounts funds throughout the cleanup process, detailed guidance on the reclassification process, and a model memorandum for transferring funds from a special account to the Hazardous Substance Superfund Trust Fund (Trust Fund) and closing out a special account.