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Ability to Pay Policy Template and Forms

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This document provides a general policy for ability to pay settlements in which an entity’s financial ability to pay is a significant consideration. An ability to pay settlement allows a business or an individual to settle the State’s environmental liability claim for less than the full amount, and it may be a legitimate option if a company or an individual cannot pay the full liability, or if in doing so, it creates a financial hardship. The document also includes two template forms for collecting information from individuals and businesses. All or part of these policies and forms may be adapted by States into the regulatory framework of their unique programs.