- What is it?
An environmental liability exists when there is a requirement, based on statute, regulation, or legal agreement to perform cleanup (i.e., removal, containment, disposal) from federal operations that resulted in hazardous waste. Environmental liabilities must be recognized on the financial statement for probable and measurable future outflows or expenditure of resources for environmental cleanup, closure, and/or disposal action. A probable environmental liability exists when it is more likely than not that hazardous waste resulted from operations where the Department of Defense (DoD) was likely involved. A measurable environmental liability exists when a dollar value can be estimated for the cleanup costs or study needed to define further cleanup parameters.
- What has the Army done?
The Army tracks and reports quarterly environmental liability categories: Installation Restoration Program (IRP) and Building Demolition and Debris Removal (BD/DR) for active and BRAC installations, Military Munitions Response Program (MMRP) for active and Base Realignment and Closure (BRAC) installations, IRP and BD/DR for FUDS, and MMRP for Formerly Used Defense Sites (FUDS). The Army also reports other accrued environmental liabilities caused by environmental corrective action, environmental closure requirements, environmental response at operational ranges, asbestos, environmental disposal for military equipment weapons programs and chemical weapons disposal programs.
- What does the Army have planned?
USAEC will continue to report environmental liabilities associated with the Defense Environmental Restoration Program and the Compliance Cleanup program using information in established environmental databases.
- Why is this important?
Tracking of environmental liabilities is a vital and necessary requisite for producing a complete and auditable financial statement. To appropriately budget and look for efficiencies in addressing environmental cleanup and compliance handling, the Army must know the cost of these actions both now and into the future.
- Read more about it:
- Defense Environmental Restoration Program Interim Guidance for Estimating Program Costs and Environmental Liabilities
- Department of Defense Environmental Liabilities Best Practices Guide
- Guidance for Recognizing, Measuring and Reporting Environmental Liabilities Not Eligible for Defense Environmental RestorationProgram Funding
- Chief Financial Officer’s (CFO) Act of 1990
- Government Performance and Results Act (GPRA) of 1993
- Government Performance and Results Modernization Act of 2010
- Government Management Reform Act (GMRA) of 1994
- Federal Financial Management Improvement Act (FFMIA) of 1996