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Office of Budget

Fiscal Year 2005 Performance and Accountability Report
Published November 15, 2005

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12. Environmental and Disposal Liabilities

VA had unfunded environmental and disposal liabilities in the amount of $376 and $339 as of September 30, 2005 and 2004, respectively. The majority of the unfunded liabilities involve asbestos removal, lead abatement, replacement of underground oil and gasoline tanks, decommissioning of waste incinerators, and decontamination of equipment prior to disposal.

While some facilities have applied prevailing state regulations that are more stringent than federal guidelines, the Occupational Safety and Health Administration and Environmental Protection Agency regulations are the legal base behind the majority of VA's environmental and disposal liabilities. Estimated liabilities for these projects are based on known contamination that exists today and have been computed by the facility engineering staff based on similar projects already completed, or by independent contractors providing work estimates.