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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:

• What is an ability to pay a settlement?
• Why is this policy being implemented?
• What type of environmental claims can be resolved by an ability to pay settlement?
• What type of environmental claims cannot be resolved by an ability to pay settlement?
• What does the liable person need to provide?
• How does the ability to pay process work?
• Responsibilities of the liable person
• Verification
• Balance Sheet Phase (Business and Individuals)
• Income and Cash Flow Statement Phase
• Use of computer models for penalty claims of less than $10,000
• Sharing the review
• Documentation of the decision
• 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.