Trust administrator: Tronox settlement is a governance change, not a redistribution of funds

Deepak Bhojwani, trust administrator for the West Chicago Environmental Response Trust, told the Finance Committee Monday that a proposed settlement tied to the former Kerr-McGee/Tronox work would change trust governance but not the fundamental way money moves among the trust’s accounts.

"Honestly, nothing changes. It's exactly, remains the same as it was before," Bhojwani said, describing the proposal as a governance adjustment rather than a reallocation of funds. He explained that the trust contains four accounts (each with separate budgets), that lead agencies such as the U.S. Environmental Protection Agency and the Illinois Emergency Management Agency oversee work and budgets, and that a prescribed waterfall governs surplus distributions when work on the accounts concludes.

Bhojwani, who said he has served as the trust administrator since 2012 and described his engineering and finance background, summarized how surplus funds are handled: first to replenish specific federal accounts when required, then to other beneficiary accounts as the lead agencies determine. He said the settlement would allow the trust and lead agencies the right to transfer excess funds among trust accounts to address needs at other sites but would not fundamentally change the waterfall structure currently in place.

When asked about remaining funds, Bhojwani said five years ago he might have expected zero but that current projections suggest "we may have some, one to $2 million left at the end," while stressing there are no guarantees. Committee members thanked him for the clear explanation and noted they could direct additional questions as the city council meeting convened later that night.

Bhojwani said he would be available to speak again at the City Council meeting at 7 p.m. for any follow-up questions.