Mr. Shefftz has experience with the following work on regulatory enforcement actions brought under the Asbestos Hazard Emergency Response Act (AHERA), Clean Air Act (CAA), Clean Water Act (CWA), Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), Emergency Planning and Community Right-to-Know Act (EPCRA), Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), Oil Pollution Act (OPA), Resource Conservation and Recovery Act (RCRA), Safe Drinking Water Act (SDWA), Spill Prevention, Control and Countermeasure (SPCC) rule, Toxic Substances Control Act (TSCA), Underground Storage Tank (UST) program, as well as various state statutes. Mr. Shefftz has been qualified as an expert witness on numerous occasions in federal, administrative, and state courts. His clients for this work have included the U.S. Environmental Protection Agency (EPA), U.S. Department of Justice (DOJ), private litigators, state Attorneys General, and defense counsel.
Financial Statement Analysis / Ability-to-Pay / Economic Impact / Corporate Control & Ownership
Mr. Shefftz has examined the tax returns, financial statements, and other financial documentation for individuals, businesses, municipalities, territorial governments, and not-for-profits to assess the ability to pay for – and/or economic impact of – sought environmental expenditures, e.g., compliance costs, penalty demands, and cleanup/remediation costs. He has reviewed discovery documents and conducted research in many cases to assess the extent to which subsidiaries can rely on their corporate parents for financial support and the extent to which corporate control of their subsidiaries goes beyond that exercised by mere ownership.
Financial Gain / Economic Benefit / Unjust Enrichment
Mr. Shefftz has modeled companies’ and municipalities’ cash flows under hypothetical full and timely compliance states of the world versus actual delayed compliance states of the world to calculate the economic benefit (i.e., financial gain or unjust enrichment) on numerous enforcement actions. As part of this work, he has estimated the weighted-average cost of capital for a wide variety of companies and industries.
Other Financial Factors in Regulatory Enforcement Actions
Mr. Shefftz has performed work on other financial factors in regulatory enforcement actions: the “size of violator” penalty element; the relative weight of different financial indicators for establishing deterrence; and, the adequacy of financing plans to ensure environmental compliance.
Computer Model Development, Training, and Support
Mr. Shefftz has managed the development of the current versions of the BEN, PROJECT, ABEL, INDIPAY, and MUNIPAY computer models that U.S. EPA’s Office of Enforcement and Compliance Assurance applies to financial economics issues in enforcement actions. He has prepared the models’ help systems and training materials, as well as presented training courses and provided related support for federal and state enforcement staff. Mr. Shefftz has also assisted in several U.S. EPA academic peer reviews and public comment processes for the BEN computer model and related economic benefit recapture issues. Finally, he has created versions of the BEN model for Canada, Chile, and El Salvador.