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ARTICLE · 30 APRIL 2018

EPA Issues Guidance Authorizing Use Of CERCLA Special Account Funds By Qualified Redevelopers

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The recently-issued guidance memorandum explains the terms under which an entity may receive special account funds.

United StatesEnvironment
Peggy Otum
Peggy Otum
Jonathan Koenig
Jonathan Koenig
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On March 27, 2018, the US Environmental Protection Agency (EPA) issued new guidance regarding use of Superfund special account funds in a memorandum titled "Guidance on Disbursement of Funds from EPA Special Accounts to Entities Performing CERCLA [Comprehensive Environmental Response, Compensation, and Liability Act] Response Actions." 1 Significantly, for the first time in its guidance on this topic, EPA recognized that special account funds may be disbursed to bona fide prospective purchasers (BFPPs) undertaking CERCLA response actions. This guidance presents an opportunity for redevelopers to make use of outside funds for redevelopment of contaminated properties. The new guidance is part of EPA's implementation of the Superfund Task Force Recommendations, specifically the recommendation to maximize the use of special accounts to facilitate site cleanup and redevelopment.

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