Penalty and Financial Models

The penalty and financial models are used to analyze the financial aspects of enforcement actions. The models currently are available:

• BEN (2024.0.0) - Calculates a violator's economic benefit of noncompliance from delaying or avoiding pollution control expenditures.
  • Requires the date the violation occurred, the date of compliance, the costs of compliance and the year the costs were estimated, and the date the penalty will be paid. 
     
• ABEL (2024.0.0) - Evaluates a corporation's or partnership's ability to afford compliance costs, cleanup costs or civil penalties.
  • Requires submissions of three to five years of an entity’s federal tax returns.
• Partial-Year Data Ability-to-Pay Tool for Businesses (xlsx)  (April 2021) – Evaluates whether there are differences in a business’ financial data between the current partial-year period and the same partial-year periods in prior years.
  • Partial-Year Data Ability-to-Pay Data Request Form (xlsx)  (April 2021) - Requires submissions of the Partial-Year Data Ability-to-Pay Data Request Form for Businesses.
     
• INDIPAY (2024.0.0) - Evaluates an individual's ability to afford compliance costs, cleanup costs or civil penalties.
  • Requires submissions of the INDIPAY Financial Data Request Forms and one to five years of an individual’s federal tax returns.
• INDIPAY+ (May 2021) – Provides a comprehensive analysis of an individual’s ability to afford compliance costs, cleanup costs or civil penalties. INDIPAY+ consists of four components:
  • 2021 Financial Analysis Spreadsheet (xlsx)  - the featured tool of INDIPAY+ which allows users to see calculations being performed as the data is entered.
  • Checklist – helps users identify what information is needed and where to find it.
  • Guide – offers and explains possible steps to conduct the ability-to-pay analysis.
  • Reference Manual – a collection of financial concepts and criteria that can help INDIPAY+ users apply appropriate accounting methods to determine an individual’s ability to pay.
     
• MUNIPAY (2024.0.0) - Evaluates a municipality's or regional utility's ability to afford compliance costs, cleanup costs or civil penalties.
  • Requires submissions of the MUNIPAY Financial Data Request Form.
     
• PROJECT (2024.0.0) - Calculates the real cost to a defendant of a proposed supplemental environmental project.

Download the Penalty and Financial Models

To download BEN, ABEL, INDIPAY, MUNIPAY, and PROJECT, click  EPA Enforcement Economic Models (msi)  

About the Models

The penalty and financial models are modified annually as part of EPA's routine update process. Updates to the models include financial information (i.e., current tax rates, inflation rates, discount/compound rates), and utility enhancement.

Help on installing, using, or understanding the penalty and financial models' outputs is available to state, tribal, local or national governments.

• Phone: Penalty and Financial Models Help Line, at 888-ECONSPT (888-326-6778). This is an international toll-free line staffed by an Agency contractor.
• Email: [email protected]