Proposed Rule2026-11052

Rescinding the Regulations for Arbitration Requirements and Procedures for Small Superfund Cost Recovery Claims

Primary source

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Published
June 3, 2026

Issuing agencies

Environmental Protection Agency

Abstract

Environmental Protection Agency (EPA) is proposing to rescind regulations establishing arbitration procedures for small cost recovery claims arising under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). EPA is proposing this rescission to simplify the body of Federal regulations.

Full Text

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<title>Federal Register, Volume 91 Issue 106 (Wednesday, June 3, 2026)</title>
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[Federal Register Volume 91, Number 106 (Wednesday, June 3, 2026)]
[Proposed Rules]
[Pages 33133-33135]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-11052]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 304

[EPA-HQ-OLEM-2026-2047; FRL-13112-01-OLEM]
RIN 2050-AH48


Rescinding the Regulations for Arbitration Requirements and 
Procedures for Small Superfund Cost Recovery Claims

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: Environmental Protection Agency (EPA) is proposing to rescind 
regulations establishing arbitration procedures for small cost recovery 
claims arising under the Comprehensive Environmental Response, 
Compensation, and Liability Act (CERCLA). EPA is proposing this 
rescission to simplify the body of Federal regulations.

DATES: Comments must be received on or before August 3, 2026.

ADDRESSES: You may send comments, identified by Docket ID No. EPA-HQ-
OLEM-2026-2047, by any of the following methods:
    <bullet> Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a> 
(our preferred method). Follow the online instructions for submitting 
comments.
    <bullet> Mail: U.S. Environmental Protection Agency, EPA Docket 
Center, Office of Land and Emergency Management, Docket, Mail Code 
28221T, 1200 Pennsylvania Avenue NW, Washington, DC 20460.
    <bullet> Hand Delivery or Courier: EPA Docket Center, WJC West 
Building, Room 3334, 1301 Constitution Avenue NW, Washington, DC 20004. 
The Docket Center's hours of operations are 8:30 a.m. to 4:30 p.m., 
Monday-Friday (except Federal Holidays).

FOR FURTHER INFORMATION CONTACT: Scott Mansfield, Office of Land and 
Emergency Management, Mail Code 5305T, Environmental Protection Agency, 
1200 Pennsylvania Avenue NW, Washington, DC 20460, telephone number: 
(202) 566-0174, email address: <a href="/cdn-cgi/l/email-protection#dcb1bdb2afbab5b9b0b8f2afbfb3a8a89cb9acbdf2bbb3aa"><span class="__cf_email__" data-cfemail="85e8e4ebf6e3ece0e9e1abf6e6eaf1f1c5e0f5e4abe2eaf3">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION:

I. Public Participation

    Submit your comments, identified by Docket ID No. EPA-HQ-OLEM-2026-
2047, at <a href="https://www.regulations.gov">https://www.regulations.gov</a> (our preferred method), or the 
other methods identified in the ADDRESSES section. Once submitted, 
comments cannot be edited or removed from the

[[Page 33134]]

docket. EPA may publish any comment received to its public docket. Do 
not submit to EPA's docket at <a href="https://www.regulations.gov">https://www.regulations.gov</a> any 
information you consider to be Confidential Business Information (CBI), 
Proprietary Business Information (PBI), or other information whose 
disclosure is restricted by statute. Multimedia submissions (audio, 
video, etc.) must be accompanied by a written comment. The written 
comment is considered the official comment and should include 
discussion of all points you wish to make. EPA will generally not 
consider comments or comment contents located outside of the primary 
submission (i.e., on the web, cloud, or other file sharing system). 
Please visit <a href="https://www.epa.gov/dockets/commenting-epa-dockets">https://www.epa.gov/dockets/commenting-epa-dockets</a> for 
additional submission methods; the full EPA public comment policy; 
information about CBI, PBI, or multimedia submissions; and general 
guidance on making effective comments.

II. General Information

A. Does this action apply to me?

    This action may affect individuals, corporations, or municipalities 
that are currently engaged in Small Superfund Cost Recovery Claims 
arbitration proceedings or may engage in those proceedings in the 
future.

B. What action is the agency taking?

    Environmental Protection Agency (EPA) is proposing to rescind all 
of the regulations found in part 304 (``Arbitration Procedures for 
Small Superfund Cost Recovery Claims'') of subchapter J (``Superfund, 
Emergency Planning, and Community Right-to-Know Programs'') of chapter 
I of title 40 of the CFR. Section 107(a) of CERCLA establishes 
liability for certain response costs associated with hazardous 
substances and the release thereof, see 42 U.S.C. 9607, and section 
122(h)(2) of CERCLA establishes that arbitration may be used as a 
method of settling such claims brought by the United States where the 
total response costs do not exceed $500,000 (excluding interest), see 
42 U.S.C. 9622(h)(2). To that end, section 122(h)(2) of CERCLA provides 
that department and agency heads ``may establish and publish 
regulations for the use of arbitration or settlement'' ``[a]fter 
consultation with the Attorney General.'' Id. 40 CFR part 304 contains 
the regulations that EPA promulgated to establish procedures for the 
arbitration of section 107(a) cost recovery claims brought by EPA. See 
40 CFR 304.10; 40 CFR 304.11. For example, part 304 establishes 
specific processes for, among other things, the referral of claims to 
arbitration, see 40 CFR 304.21; the appointment of an arbitrator, see 
40 CFR 304.22; and intervention in and withdrawal from arbitration, see 
40 CFR 304.24. Part 304 also sets forth specific requirements and 
procedures related to arbitral pleadings, pre-hearing conferences, 
hearings, and decisions. See 40 CFR 304.30-304.33. EPA now finds part 
304 to be unnecessary.
    Arbitration was intended to be an alternative dispute resolution 
technique for reaching settlements with individuals, corporations, or 
municipalities in appropriate small cost recovery cases. However EPA is 
not aware of the last time the process was used or if it has been used 
at all. In addition to the questionable utility of the alternative 
process given its lack of use, if that process were ever used in the 
future, the Agency could be in the position of using an unpracticed 
method, which may require shifting and/or reallocating limited agency 
resources. In the original proposed and final rulemakings for part 304, 
EPA explained that ``arbitration is an alternative dispute resolution 
technique that should provide a quicker and less costly method or 
resolution than traditional litigation or negotiation.'' 53 FR 29428, 
54 FR 23179. The absence of parties that have used arbitration pursuant 
to part 304 could indicate that it is not as quick and simple of a 
process as we originally thought. EPA is soliciting comments on this 
interpretation. Additionally, no statute requires EPA to establish an 
extensive framework governing arbitration; instead, EPA exercised its 
discretionary authority and opted to promulgate such regulations as 
permitted by section 122(h)(2) of CERCLA. See 42 U.S.C. 9622(h)(2). 
Moreover, part 304 introduces a significant amount of complexity to the 
body of Federal regulations, as it establishes specific and somewhat 
complicated requirements and processes for the arbitration of a 
particular subset of section 107(a) cost recovery claims brought by 
EPA.
    EPA is therefore proposing to rescind part 304 in its entirety to 
simplify the body of Federal regulations. EPA seeks comments on this 
proposed action.

C. What is the agency's authority for taking this action?

    The authority to propose this rule is found in sections 107 and 122 
of the Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980 (CERCLA), as amended by the Superfund Amendments 
and Reauthorization Act of 1986 (42 U.S.C. 9607 and 9622).

D. What are the costs and benefits of this action?

    By eliminating an unused method of dispute resolution and removing 
unnecessary regulatory text, this action will reduce complexity for 
regulated entities engaging with the federal government.

III. Statutory and Executive Order Reviews

    Additional information about these statutes and Executive Orders 
can be found at <a href="https://www.epa.gov/laws-regulations/laws-and-executive-orders">https://www.epa.gov/laws-regulations/laws-and-executive-orders</a>.

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    This action is not a significant regulatory action and was 
therefore not submitted to the Office of Management and Budget (OMB) 
for review.

B. Executive Order 14192: Unleashing Prosperity Through Deregulation

    This action is expected to be an Executive Order 14192 deregulatory 
action. The proposed rule is expected to provide burden reduction by 
simplifying the body of Federal regulations.

C. Paperwork Reduction Act (PRA)

    This action does not impose an information collection burden under 
the PRA. This action does not contain any information collection 
activities.

D. The Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the RFA. In 
making this determination, the EPA concludes that the impact of concern 
for this rule is any significant adverse economic impact on small 
entities and that the agency is certifying that this rule will not have 
a significant economic impact on a substantial number of small entities 
because the rule has no net burden on the small entities subject to the 
rule. This proposed rule is a deregulatory action and does not add any 
additional burden. We have therefore concluded that this action will 
relieve regulatory burden for all directly regulated small entities.

E. Unfunded Mandates Reform Act (UMRA)

    This action does not contain an unfunded mandate as described in 
UMRA, 2 U.S.C. 1531-1538, and does not significantly or uniquely affect 
small governments. The action will impose no

[[Page 33135]]

enforceable duty on any state, local or Tribal governments or the 
private sector.

F. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have 
substantial direct effects on the states, on the relationship between 
the national government and the states, or on the distribution of power 
and responsibilities among the various levels of government.

G. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    This action does not have Tribal implications as specified in 
Executive Order 13175 (65 FR 67249, November 9, 2000) because it does 
not have substantial direct effects on one or more Indian Tribes, on 
the relationship between the Federal Government and Indian Tribes, or 
on the distribution of power and responsibilities between the Federal 
Government and Indian Tribes. Thus, Executive Order 13175 does not 
apply to this action.

H. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that concern environmental health or safety risks 
that EPA has reason to believe may dispropor-tionately affect children, 
per the definition of ``covered regulatory action'' in section 2-202 of 
the Executive Order.
    Therefore, this action is not subject to Executive Order 13045 
because it does not concern an environmental health risk or safety 
risk. Since this action does not concern human health, EPA's Policy on 
Children's Health also does not apply. This action is proposing to 
rescind regulations establishing arbitration procedures for small cost 
recovery claims. There are no children's health considerations for this 
action.

I. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use

    This action is not subject to Executive Order 13211 (66 FR 28355, 
May 22, 2001) because it is not a significant regulatory action under 
Executive Order 12866.

J. National Technology Transfer and Advancement Act (NTTAA) and 1 CFR 
Part 51

    This action does not involve technical standards.

List of Subjects in 40 CFR Part 304

    Environmental protection, Claims, Superfund.

Lee Zeldin,
Administrator.

PART 304--[REMOVED AND RESERVED]

0
For the reasons set forth in the preamble, and under the authority of 
42 U.S.C. 9607(a) and 9622 (h)(2), Executive Order No. 12580, 52 FR 
2923 (January 29, 1987), EPA proposes to remove and reserve 40 CFR part 
304.

[FR Doc. 2026-11052 Filed 6-2-26; 8:45 am]
BILLING CODE 6560-50-P


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Indexed from Federal Register on June 3, 2026.

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