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The Association of State and Territorial Solid Waste Management Officials (“ASTSWMO”) published a report titled:
Ability to Pay – Policy Template and Forms (January 2018) (“Report”)
The Report was prepared by the ASTSWMO State Fund – Financial Responsibility Task Force Tanks Subcommittee.
Issues addressed in the Report include:
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What is an ability to pay a settlement?
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Why is this policy being implemented?
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What type of environmental claims can be resolved by an ability to pay settlement?
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What type of environmental claims cannot be resolved by an ability to pay settlement?
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What does the liable person need to provide?
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How does the ability to pay process work?
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Responsibilities of the liable person
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Verification
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Balance Sheet Phase (Business and Individuals)
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Income and Cash Flow Statement Phase
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Use of computer models for penalty claims of less than $10,000
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Sharing the review
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Documentation of the decision
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Deviation from this policy
Two appendices are provided that address collection information for business and for wage earners and self-employed individuals, respectively.
A copy of the Report can be downloaded here.