xvEPA
United States
Environmental Protection
Agency
OfftoB of
Solid Waste and
Emergency Response
EPA540-R-96-047
OSWER9200.0-23A
PB96-963269
January 1997
Superfund
i
Synopsis:
Superfund Administrative
Reforms Annual Report
Fiscal Year 1996
i __-
-------
-------
SYNOPSIS:
SUPERFUND
ADMINISTRATIVE REFORMS
ANNUAL REPORT
FISCAL YEAR 1996
?/EPA
-------
Additional Copies of this document can be obtained
from: The National Technical Information Service (NTIS)
U.S. Department of Commerce
5285 Port Royal Road
Springfield, VA 22161
Phone number: (703)487-4600
You can view or download this document at the following
Internet Address: http:\\www.epa.gov\superfund
-------
MAJOR A CCOMPLISHMENTS
Fundamentally Different: How EPA Has Changed
Implementation of the Superfund Program
INTRODUCTION
For several years, EPA has been reforming the Superfund program to make it work faster,
fairer, and more efficiently. While EPA has been working with Congress to make
legislative changes, it also has fundamentally changed the program by implementing a
series of far-reaching reforms.
These changes have improved the functioning of a program that addresses thousands of
abandoned sites throughout the country. Chemical and radioactive wastes at such sites
threaten nearly 70 million Americans - including more than 10 million children - who
live within four miles of a Superfund site.
The highlights of EPA's comprehensive effort to restructure Superfund are summarised
below. A more detailed description of the status of EPA's reform effort is provided in the
attached Annual Report.
THE SUPERFUND PROGRAM TODAY
The collection of initiatives iknown as "Superfund reforms" has produced basic,
permanent changes in the Superfund program, ranging from national programmatic
changes to changes impacting individual sites at every stage of the cleanup and
enforcement processes. Ref arming Superfund has been a continuous process - EPA
piloted changes, learned from them, and, where they Were successful, made them part of
the program. EPA developed these reforms after consideration of the differing
perspectives of the various stakeholders in the Superfund process. By listening and
responding to these perspectives, changes have been made to the Superfund process that
speed it up, reduce costs, and make it faker. These changes affect the entire process -
stretching from the very beginning (when a site is first assessed), to the very end (when
construction is completed and any enforcement is concluded).
As a result of Superfund reform, EPA's internal decision-making processes make more
sense. The Agency has taken a number of steps to ensure that Federal Superfund
resources and protections are focused in the right places. The Agency is prioritizing
December 1996
Pagel
-------
cleanups so that the sites posing the worst environmental and health problems are
addressed first EPA is deleting cleaned up portions of sites from the Nations^ Priorities
List (NPL) instead of waiting for the whole site to be cleaned up so that these sites will
not suffer from any limitations imposed by identification as a Superfund site. EPA
deleted over 27,000 sites from its inventory of all potential hazardous waste sites hi
instances where no further response activity is planned for the site. EPA also will
encourage comparable State voluntary programs to handle sites that do not rise to the
level of Federal attention.
i
When a site does merit a Federal response, the process for selecting the response is faster
and less costly. When determining the risk posed by the site, EPA incorporates the most
recent information and reasonable assumptions in its risk-based and remedial decisions.
Assumptions regarding current and future land use are developed in conjunction with the
affected community. After determining the risk posed by the site, EPA must consider
various remedies to address the risk. In conjunction with States and communities, EPA is
coordinating the selection of better, more cost-effective remedies. Where EPA has
accumulated a body of experience in addressing a particular type of site, it has identified
standardized remedies known as "presumptive remedies" to eliminate the need for costly
studies and processes that are likely to yield the same choices.
In selecting the right remedy for a particular site, EPA clarified the role that cost plays in
affecting that decision. To ensure that costs are given an appropriate role in remedy
selection, EPA established a panel of national experts to review high cost remedies.
Where a remedy selected hi the past may merit reconsideration based on new
technological developments, EPA is revising these remedies to ensure that the most cost-
effective remedies are considered. The Agency's track record on future cost reductions at
every step of the way is remarkable - money is being saved by reviewing remedy
selection, updating remedy decisions, applying presumptive remedies, and implementing
remedies selected with community participation. Just from the initial implementation of
these most recent reforms alone, over $400 million in reduced future cleanup costs will
be achieved.
The enforcement process has also been transformed into a fairer process that results hi
reduced transaction costs. EPA continues to emphasize "Enforcement First" - using its
enforcement authority to assure that viable private parties that created hazardous wastes
are held responsible for cleaning them up, so that the Superfund is reserved for truly
"orphaned" sites. More than 70% of long-term cleanup actions are now financed by
responsible parties. EPA's implementation of this approach, however, has included
efforts to enhance equitable treatment for all parties. EPA does not pursue parties whose
contribution of waste to the site is extremely small, since the transaction costs these
parties would incur in defending themselves would easily exceed whatever minimal
contribution they may be expected to make. Parties with slightly larger contributions
Page 2 December 1996
-------
(known as de minimis parties) are routinely offered cashout settlements early in the
process to limit their transaction costs and give them! the assurance of being protected
from any further involvement at the site. Over 14,000 of these parties have taken
advantage of these settlement opportunities to date.
The remaining parties, who bear a larger burden of responsibility at these sites, have also
benefited from the enforcement reforms. Where there are parties that are no longer hi
business or without assets, EPA provides compensation for a portion of those parties'
share at sites where the remaining parties agree to perform the work. This past year, EPA
offered to compromise over $57 million at various sites to increase fairness for those
parties agreeing to perform cleanups. To reduce the transaction costs that are often
incurred where parties cannot agree on what share each party should bear, EPA is testing
an allocation process where a neutral party detennines each party's share of responsibility
and EPA offers settlements to parties based on that allocation. Although these test cases
have not been concluded, the Agency has already learned valuable lessons that are
already impacting its enforcement process. In addition, EPA has established and utilized
interest-bearing "special accounts" to ensure that settlement funds are dedicated for use hi
achieving cleanup at a specific site. Lastly, where potentially responsible parties (PRPs)
have demonstrated their capability and cooperativeness hi performing site cleanup, EPA
will significantly reduce oversight, and thereby reduce the costs of cleanups, for
cooperative responsible parties.
Superfund reforms also have focused the Agency's attention on promoting redevelopment
of abandoned and contaminated properties across the country. The Agency has
aggressively pursued policies to promote sensible redevelopment of "Brownfields" -
those abandoned, idled, or under-used industrial and commercial areas across the country
where expansion or redevelopment is complicated by real or perceived environmental
contamination. EPA is providing grant money to 76 communities to develop strategies to
revitalize local brownfield sites. EPA is stimulating the purchase of property for
redevelopment by expanding the opportunity for more agreements promising not to sue
those purchasers for any contamination present at the time of purchase. For many parties
who may own property that is part of a Superfund site (but they have very little, if any,
link to the contamination) EPA stated its intention not to pursue these types of parties.
For example, EPA issued policies describing the circumstances under which it will not
take enforcement actions for cleanup work or costs against various parties, such as
residential homeowners. EPA has had great success restoring contaminated residential
properties, working with homeowners to remove contaminants frequently found hi
residential areas. Additionally, hi a recent study of how sites were being re-used, EPA
found that of the first 191 construction completion sites, 80 were already hi economic
reuse in 1995 and 44 additional sites are hi some nonyeconomic reuse (e.g., floodplains,
wetlands, green space, permanent waste management). These are just a few of the
highlights of EPA's extensive Brownfields initiative.
December 1996 Page 3
-------
The rest of this document elaborates on this "thumbnail" portrait of how reforms have
changed the Superfiind program. Only highlights are furnished, since more extensive
details are set forth in the Annual Report itself.
MORE EFFICIENT CLEANUPS
Setting Priorities for Cleanups
To ensure that available funds are directed to the highest priority response projects on a
national basis, EPA established a National Risk-Based Priority Panel (Panel) in August
1995. Prior to this reform, individual Regions established the relative priority of their
cleanup projects which were then funded on a first-come, first-served basis. 'This reform
established a national priority system to fund cleanups based on the principle of "worst
problems first." The Panel evaluates proposed cleanup actions, looking at the following
factors: risks to humans and the ecology; stability and characteristics of contaminants;
and economic, social and program management considerations. With the exception of
emergencies and the most critical removal actions, cleanup projects are generally funded
in order of priority based on the recommendations of the Panel. By early 1997, the panel
had ranked projects approaching $1 billion in cleanup costs.
Getting PRPs "Into the Act"
High quality risk assessments can often be performed faster and cheaper by PRPs under
EPA's supervision, saving taxpayer money and accelerating the pace of cleanup. In
January 1996, EPA issued a directive encouraging the performance of Superfund site risk
assessments by PRPs in appropriate cases. Eight Regions have now identified Superfund
sites for PRP-led risk assessments.
FASTER CLEANUPS
In FY92, EPA established a goal of achieving 395 toxic waste cleanups (or construction
completions) atNPL sites by the end of FY96. On October 15,1996, the Administrator
announced the completion of 410 Superfund toxic waste site cleanups. EPA has set a
record pace for cleaning up Superfund sites — cleaning up more toxic waste sites in the
past three-and-a-half years than were completed in the previous 12 years of the Superfund
program. At the Lord-Shope Landfill near Erie, Pennsylvania (the 400th site to be
cleaned up) parties used innovative technology to remove contaminants. Toios of
industrial wastes had been dumped over 20 years (including debris, rubber scrap, organic
and inorganic chemicals, solvents, cooling acids, and caustic agents) that resulted in
Page 4 December 1996
-------
ground water contamination.. Today, the worries of the community are at an end. No
longer do they need to be concerned about the safety of drinking water, the impact on
farmland near the site, the effect on property values of their homes and businesses, and
the possibility of children wandering onto the site and playing among the drums of toxic
chemicals.
EPA (with the support of the Corps of Engineers and the Bureau of Reclamation and their
cleanup contractors) also has implemented reforms which streamlined its rapid action
cleanup authority. EPA's Superfund Accelerated Cleanups Model (SACM) accelerates
cleanup and risk reduction at sites by consolidating site-assessment into a one-step
process. SACM includes the following initiatives: taking early actions while assessing
long-term cleanup; using "presumptive" remedies where appropriate; initiating
enforcement activities earlier; and addressing the worst threats to people and the
environment first. SACM reduces cleanup time through a single, continuous site
assessment and early action process. EPA has now completed over 3,800 removal
actions, including the more irecent SACM removals, at over 2,900 Superfund sites,
thereby removing significant threats to public health and the environment. At the
Southern Shipbuilding Corporation Superfund Site in Slidell, Louisiana, EPA conducted
several emergency actions to prevent the catastrophic release of hazardous materials into
Bayou Bonfuca. Through an accelerated combination of waste incineration, removal
actions, and investigations, EPA rapidly reduced human health and environmental risks,
and ensured that a site which was once a threat to downstream properties is now available
for future development.
Choosing the Right Remedy
The Agency is saving time and money by using standardized or "presumptive" remedies
for certain types of sites. Presumptive remedies are based on scientific and engineering
analyses performed at similsir Superfund sites and are used to eliminate duplication of
effort,"facilitate site characterization, and simplify analysis of cleanup options. EPA
issued presumptive remedy j^uidances for the following: municipal landfill sites; sites
with volatile organic compomds in soil; wood treater sites (with an update two years
later); and a ground water presumptive response strategy. Regions are reporting
significant reductions in costs and tune required to complete remedies. A recent Office
of Inspector General report focused on an independent review of the use of a presumptive
remedy and concluded that "Use of a. Presumptive Remedy increased consistency hi
decision making by taking advantage of lessons learned at similar sites, and allowed
speedup of the Feasibility Study process."
December 1996
Page5
-------
REDUCING REMEDY COSTS
Taking a Second Look
Taking a second look at remedies is creating substantial future cost reductions for parties
at complex, high cost Superfund sites across the country. The EPA's newly established
National Remedy Review Board is reviewing high-cost cleanup plans prior to final
remedy selection. Overall, the Board's preliminary analysis indicates potential reductions
in the range of $15-30 million in total estimated future costs for reviews completed
during FY96.
Clarifying the Role of Cost in the Remedy Selection Process
Through a recently issued fact sheet, EPA summarized information on the role of cost in
the Superfund program which was, prior to this point, scattered in guidance, statutes, and
regulations. EPA's aim is to ensure that all stakeholders involved hi the Superfund
process fully understand the important role of cost hi remedy selection under both
existing law and policy and in recent initiatives aimed at enhancing the cost-effectiveness
of remedial actions.
Using Technology and Science Updates to Save Money
i - i •. . • t
Approximately $280 million in future cost reductions are predicted as a result of the
Agency's review and update of earlier remedy decisions. Many remedy selection
decisions now in place were made in the early years of the Superfund program and were
based on "state-of-the-knowledge-and-practice" available at the tune. Where science and
technology have advanced and adequate levels of public health and environmental
protection are assured, EPA is revising remedies where future cost reductions can be
achieved while still marntaining appropriate levels of protection.
BETTER LAND USE ASSUMPTIONS IN REMEDY SELECTION
EPA has unproved its cleanup decisions by more routinely using reasonable assumptions
about current and future land use. Recognizing that land may be appropriate for
industrial uses, rather than residential uses, can yield a more realistic risk assessment and
more cost-effective remedy selection. EPA is reaching out to local land use planning
authorities, other government officials and the public as early as possible during site
investigation to discuss land use issues. EPA also is making extra efforts to reach out to
communities which may have environmental justice concerns to ensure that they are fully
Page 6
December 1996
-------
informed and able to participate in these decisions. Currently, only 38% of EPA's
Records of Decision (RODs) include residential land use scenarios, typically where there
is residential land use on-site or adjacent to the site, i
PROMOTING ECONOMIC REDEVELOPMENT
EPA is promoting redevelopment of abandoned and contaminated properties across the
country that were once used for industrial and commercial purposes ("brownfields").
EPA believes that environmental cleanup is a building block, not a stumbling block, to
economic development and that revitalizing contaminated property must go hand-in-hand
with bringing life and economic vitality back to communities. EPA's Brownfields
Economic Redevelopment Mtiative places a new focus on brownfields. The Brownfields
reforms are directed toward, empowering States, communities, and others to work
together to assess, safely clean up, and sustainably reuse these sites. EPA efforts are
being accomplished through the Brownfields Action Agenda - an outline of specific
actions the Agency is conducting.
Brownfields Pilots are Encouraging Redevelopment
The Brownfields Assessment Pilots form a major component of the Brownfields Action
Agenda. EPA exceeded its commitment to fund at least 50 pilots by actually funding 76
pilots at up to $200,000 each by the end of 1996. These two-year pilots are intended to
generate further interest in Brownfields redevelopment by bringing together public and
private efforts including Federal, State, and local governments. The Brownfield pilots
will develop information and strategies that promote a unified approach to site
assessment, environmental cleanup, and redevelopment. Many different communities are
participating, ranging from small towns to large cities. Stakeholders tell the Agency that
Brownfields development activities could not have occurred in the absence of EPA
efforts. As the National Community Reinvestment Coalition (NCRC) said "[W]e
wholeheartedly support the EPA's Brownfields Economic Redevelopment Initiative.
NCRC believes that [EPA's] multifaceted initiative represents a significant step forward
by the Administration in working with distressed communities on the local level in their
revitalization efforts."
Getting Sites off the. "List"
Prior to reform, EPA kept track of all potential hazardous waste sites in an inventory
known as the Comprehensive Environmental Response and Liability Information System
(CERCLIS). Even sites where no further Federal Superfund interest was warranted
remained in the CERCLIS inventory. This practice led to unintended barriers to the
redevelopment of these properties because sites listed in CERCLIS could be
December 1996 Page 7
-------
automatically considered risky by some lenders, making it difficult for potential
purchasers to secure loans to develop these properties. To avoid this result, EPA
redefined CERCLIS, deleting or archiving sites from the active CERCLIS inventory.
EPA has archived over 27,000 sites (e.g., sites where 'no further remedial aclion [is]
planned') from CERCLIS to date, and EPA expects to archive over 1,000 additional sites
from CERCLIS per year over the next several years.
Removing Redevelopment Barriers Based on Liability Concerns
EPA is promoting redevelopment of contaminated properties by protecting prospective
purchasers, lenders, and property owners from Superfund liability. EPA's "prospective
purchaser" policy is stimulating the development of sites where parties otherwise may
have been reluctant to take action by clarifying (through agreements known as
"prospective purchaser agreements") that bona fide prospective purchasers will not be
responsible for cleaning up sites where they did not contribute to or worsen
contamination. EPA issued new guidance in May 1995, which allowed the Agency
greater flexibility in entering into such agreements. The new guidance expanded the
universe of sites eligible for such agreements to include instances where there is a
substantial benefit to the community in terms of cleanup, creation of jobs, or development
of property. Of the 45 agreements to date, over 50% have been reached since issuance of
the May 1995 guidance. At the Indiana Woodtreating Site near Bloomington, Indiana,
the work performed under a prospective purchaser agreement will prevent contaminants
from entering Clear Creek, which is a drinking water source for the City of Bloomington,
Indiana.
People owning property under which hazardous substances have migrated through ground
water also feared liability under the statute. EPA responded by announcing that it will
not take enforcement actions under CERCLA against owners of property situated above
contaminants which have migrated in ground water, but where the property is not also a
source of contamination. Further, EPA also will consider providing protection to such
property owners from third party lawsuits through a settlement that affords contribution
protection.
EPA gave reassurance to the lending industry and to government entities acquiring
property involuntarily. EPA outlined hi guidance what it considered appropriate actions a
lender may undertake without becoming a liable party. In September 1996, Congress
passed an amendment very similar to EPA policy and guidance on lenders. EPA also is
providing assurances ("comfort/status letters") in appropriate circumstances to new
owners, lenders, or developers that they need not fear incurring Federal environmental
liability.
PageS
December 1996
-------
INVOLVING AND INFORMING COMMUNITIES
Communities Getting Involved in Remedy Selection
EPA is promoting "consensus-based" approaches to the remedy selection process by
involving community stakeholders in pilots. This effort is intended to empower local
citizens and other stakeholders to achieve mutually apceptable remedies that meet
statutory and regulatory requirements and, of course, make common sense. At the Lower
East Fork Poplar Creek Site in Oak Ridge, Tennessee, the cleanup strategy that was
agreed to in August 1995 reflected the voice of the local community in the remedy
selection process. This included input into a change in cleanup goals. Through a citizens
working group established by the Department of Energy working hi partnership with
EPA and the State of Tennessee, the citizens' influence on the remedy selection decision
saved over $100 million and helped protect human health and the environment more
quickly.
Giving Stakeholders a Voice
EPA established an Ombudsman hi every Region to serve as a direct point of contact for
stakeholders to address their concerns under Superfund. Prior to this reform, stakeholders
worked out concerns with Regional personnel, but had no formal mechanism for having
their issues facilitated further. The Ombudsmen noW serve as facilitators for stakeholders
on concerns that have not been resolved between Regional personnel and the stakeholder
through informal means. The Ombudsman reports to a top Regional management official
hi every Region to assure management attention to issues raised.
Improving Public Access to Superfund Information
EPA recognized that improving communication with stakeholders and improving access
to Superfund information will help the public become more aware of, and informed
about, Superfund. EPA is using electronic tools to improve communication, including
having sites for both the Office of Emergency and Remedial Response (OERR) and the
Office of Site Remediation Enforcement (OSRE) on the Internet, with separate pages
devoted to Superfund reform. Each Region also is developing home pages which will
include information on Regional Superfund programs, such as Superfund site lists, site-
specific information, successful site cleanup actions, and links to State Superfund
activities.
December 1996
Page 9
-------
GETTING STATES AND TRIBAL GOVERNMENTS'INTO THE ACT'
State Programs Speed Cleanup ofNon-NPL Sites
EPA recognizes the important role that State environmental agencies have in encouraging
economic redevelopment of brownfields. EPA plans to provide $10 million, earmarked
inFY97 appropriations, to encourage the development or enhancement of State programs
that encourage private parties to voluntarily undertake protective cleanups of less
seriously contaminated sites. EPA issued a memorandum setting out an interim
approach for its relations with State voluntary cleanup programs. The memorandum
includes criteria for State voluntary cleanup programs that are enabling EPA and the
States to start negotiating a division of labor between EPA and the States in memoranda
of agreement (MO As). Even before these criteria were set out, eight States worked out
MOAs with EPA regarding sites cleaned up under voluntary cleanup programs.
Greater Power for States in Picking Remedies
EPA is sharing its authority to select remedies with qualified States and Tribes and to
decide which sites to list on the NPL. States selected for this reform enter into
agreements through which they conduct the remedy selection process, consistent with
applicable law and regulations. Participating States supervise the entire remedy selection
process with minimal EPA oversight or involvement, giving the State significantly more
control than usual over NPL site cleanups.
MAKING THE LIABILITY SYSTEM WORK BETTER
A core principle of the Superfund program is that the cost of cleaning up toxic waste sites
should be borne by the parties responsible for disposing of the waste. EPA's
"Enforcement First" strategy has assured that responsible parties perform or pay for more
than 70% of long-term cleanups, thereby conserving the Superfund trust fund for cleaning
up sites for which no viable responsible parties can be identified.
At the same time, EPA has reformed the way it administers the Superfund liability
program to encourage parties to settle, rather than to litigate, and to enhance Ihe fairness
and equity of settlements.
Testing Alternatives
EPA is conducting pilots that test a fundamentally different approach to the allocation of
Superfund costs (called the allocations pilots). Under this approach, PRPs may settle
their liability based upon their share of cleanup costs. A neutral party known as an
Page 10
December 1996
-------
allocator, selected by parties to the process, conducts an out-of-court allocation. The
allocator assigns shares of responsibility for cleanup costs among all PRPs at a site.
Under this scheme, EPA expects to pay the "orphan share," which includes the shares of
parties which are defunct or insolvent. To date, EPA has offered allocation pilots at 12
Superfund sites. The pilots have been useful in identifying problems and have indicated
the need for flexibility to meet site-specific circumstances. Other lessons regarding the
pilots are set out in more detail hi the accompanying Annual Report.
Recognizing the Orphan Share
Through implementation of its 1996 "orphan share compensation" policy, EPA is
encouraging responsible parties to agree to perform cleanups and is enhancing the
fairness of settlements. Without a settlement, responsible parties at a site are potentially
liable under the Superfund law for the entire cost of the cleanup, including the share that
might be attributable to other parties that are insolvent or defunct. Under the new orphan
share compensation guidance, however, EPA has offered, and will offer, to forgive a
portion of its past costs and projected future oversight costs hi cleanup settlements to
cover some or all of the orphan share at the site. This creates a major incentive for
responsible parties to agree to perform the cleanup without litigation, and reduces
transaction costs by addressing arguments over who should bear the burden of the orphan
shares. This compromise is in addition to any other compromises that may be reached
because of other factors. In FY96, the Agency offered to compromise over $57 million hi
orphan share compensation to potential settling parties at 24 sites across the United
States.
Getting Parties Out Early
EPA's reforms are getting thousands of small volume waste contributors out of the
liability system. PRPs that are liable for cleanup costs have sometimes sued huge
numbers of smaller companies that had little or no connection to the toxic contamination
- sometimes simply by naming every business in the local yellow pages as a defendant in
a contribution lawsuit. EPA's reforms have responded to the burden this can place on
parties that made a very limited contribution to the pollution at a site by using its
settlement authority to get small waste contributors out of Superfund litigation. To date,
the government completed settlements with over 14,000 small volume contributors of
hazardous waste at hundreds; of Superfund sites. These settlements protect the settling
parties from burdensome private contribution suits. In addition, EPA has stepped hi to
prevent the big polluters from dragging untold numbers of the smallest "de micromis"
contributors of waste into contribution litigation by publicly offering to any such party $0
settlements that would preclude lawsuits by other PRPs.
December 1996
Page 11
-------
Reducing Costs for PRPs Through Reduced Oversight
PRPs incur costs at sites in part because of EPA's need to oversee the quality of the work
they are doing. Oversight is the process EPA uses to ensure that all studies arid work
performed by PRPs are technically sound and comply with the statute, regulations,
guidances, policies, and the signed settlement agreement. Oversight may include
submission of reports for approval, meeting interim milestones, or the scheduling of field
visits. As the Superfund program matures, parties performing work at sites have
developed a considerable body of experience in conducting response activities at sites.
EPA can reduce oversight of such parties while continuing to exercise sufficient oversight
to ensure that the work is performed properly and in a timely manner.
Already, EPA Regions have initially identified approximately 100 sites where reductions
in oversight of ongoing work for cooperative and capable PRPs have occurred or will
occur—significantly reducing costs at some of these sites. EPA also may look at
opportunities to involve communities hi deciding the appropriate level of PRP oversight.
How IT ADDS UP
These are just the highlights. Over the past four years, EPA's reform effort has included
implementing well over 50 initiatives in its determination to reform the Superfund
program. A very few of the initiatives have ended or will end because they were pilots
that EPA has used to test alternative ways of doing business and learn what might work
best. Most are permanent and fundamental changes to make the Superfund program
faster, fairer, and more efficient EPA is committed to solidifying and building on these
changes to continue to run the Superfund program better.
Page 12
December 1996
-------
ANNOTATED LIST OF REFORMS
IN ;
SUPERFUND ADMINISTRATIVE REFORMS ANNUAL REPORT, FISCAL YEAR 1996
SUPERFUND REFORMS ROUND THREE
I. CLEANUPS i
1. ESTABLISH COST-EFFECTIVENESS THRESHOLDS AND NEW RULES-OF-THUMB
la Establish National Remedy Review Board
EPA created the National Remedy Review Board, composed of senior Agency experts, to review
proposed high cost remedies at specific sites to ensure that costs are not disproportionate to cleanup
benefits.
lb. Establish New Remedy Selection Management Flags ("Rules-of-Thumb ")
The goal of the rules-of-thumb initiative is to idevelop remedy selection rules that will promote cost-
effectiveness and flag potentially "controversial" cleanup decisions for senior management review.
2. UPDATE REMEDY DECISIONS AT SELECT SITES
EPA encourages the Regions to revisit remedy decisions at certain sites where significant new scientific
information, technological advancements, or other considerations will achieve the current level of
protectiveness of human health and the environment in a more cost-effective manner.
• 3. CLARIFY THE ROLE OF COST AND MAINTAIN CONSISTENCY THROUGHOUT THE REMEDY
DEVELOPMENT PROCESS
3a. Clarify the Role of Cost in the Remedy Selection Process
This reform clarifies the role of cost in developing cleanup options and selecting remedies, and
promotes the: use of policies and guidances in'order to assure cost-effectiveness.
3b. Directive on National Consistency in Remedy Selection
This directive emphasizes the critical importance of maintaining appropriate national consistency
in the Superlimd remedy selection process and requests that program managers make full use of
existing tools and consultation opportunities to promote such consistency.
4. CLARIFY INFORMATION REGARDING REMEDY SELECTION DECISIONS
This initiative requires EPA to develop summary sheets that clearly demonstrate the basis for remedy selection
at each site. The summary sheet will present the relationship between site risks and response actions, including
costs and benefits of cleanup alternatives.
5. INSTITUTE NEW ROLE FOR STAKEHOLDERS IN RISK ASSESSMENTS
5a. Community Participation in Designing Risk Assessments
EPA solicits early stakeholder input to identify and make consistent use of current information
about the site and site contaminants.
5b. PRP Performance of Risk Assessments
This initiative reaffirms EPA's commitment to allow potentially responsible parties (PRPs) at a site
to perform risk assessments under the proper circumstances.
6. ENSURE REASONABLE AND CONSISTENT RISK ASSESSMENTS
6a. Establish National Criteria on Superfund Risk Assessments
EPA will issue national criteria to the Regions for review, approval, and reporting of
Superfund risk assessments. '•
6b. Standardize Risk Assessments
This initiative standardizes those components iOf the risk assessment process that vary slightly
from site to siite. ;
6c. Utilize Expert Work Group on Lead
This initiative utilizes an expert workgroup to1 standardize risk assessment approaches for
lead-contaminated Superfund sites.
December 1996
Page 13
-------
7. ESTABLISH LEAD REGULATOR FOR FEDERAL FACILITIES
EPA is developing guidance to establish a lead regulator at each site undergoing cleanup activities under
competing Federal and State authorities to eliminate overlap and duplication of efforts.
8. CONSIDER RESPONSE ACTIONS PRIOR TO NPL LISTING
This initiative ensures that response actions that have been taken up to the time of listing are considered
before listing sites on the National Priorities List (NPL).
9. DELETE CLEAN PARCELS FROM THE NPL
EPA will delete portions of sites from the NPL that have been cleaned up and are available for productive use.
I .'!,'>
10. CONDUCT NATIONAL RISK-BASED PRIORITY SETTING
1 Oa. Promote Risk-Based Priority Setting at Federal Facility Sites
EPA will address the role of risk and other factors in setting priorities at Federal facility sites.
10b. Promote Risk-Based Priority for NPL Sites
EPA has established a National Risk-Based Priority Panel to evaluate the priority order of NPL
sites.
* I:, . .
H. ENFORCEMENT
11. ORPHAN SHARE COMPENSATION
This initiative seeks to compensate parties for a limited portion of the costs attributable to insolvent parties
(orphan share) at sites where parties agree to perform the cleanup, subject to the adequacy of funding for the
cleanup program.
12. SITE SPECIFIC SPECIAL ACCOUNTS
EPA will direct settlement funds designated for future site costs to be placed in site-specific accounts and
ensure that interest is credited to those accounts.
13. EQUITABLE ISSUANCE OF UNILATERAL ADMINISTRATIVE ORDERS (UAOs)
EPA is committed to ensuring that UAOs are issued to all appropriate parties where there is a sufficient
basis to include them.
14. REVISED DE MICROMIS GUIDANCE
This reform is intended to improve EPA's ability to resolve very small volume waste contributors'
(i.e., de micromis) liability concerns quickly and fairly.
15. ADOPTING PRIVATE PARTY ALLOCATIONS
In order to reduce transaction costs, EPA has committed to adopt private party allocations (including those
that identify an orphan share) as the basis for settlement, where such allocations are approved by EPA.
16. REDUCED OVERSIGHT FOR CAPABLE AND COOPERATIVE PRPs
EPA will strive to acknowledge PRPs that consistently perform high quality work by significantly reducing
or tiering oversight, thereby reducing transaction costs.
HI. PUBLIC INVOLVEMENT
17. PILOT REMEDY SELECTION BY SELECTED STATES AND TRIBES
This initiative implements a process whereby qualified States and Tribes would select remedies at certain
Superfund sites, consistent with applicable law and regulations governing cleanups.
18. PILOT COMMUNITY-BASED REMEDY SELECTION PROCESS ;
EPA will explore the use of more "consensus based" approaches that involve community stakeholders in the
Superfund remedy selection process.
19. ESTABLISH SUPERFUND OMBUDSMAN IN EVERY REGION
This initiative established an Ombudsman in each Region to serve as a point of contact for the public and
help resolve stakeholder concerns.
20. IMPROVE COMMUNICATION WITH SUPERFUND STAKEHOLDERS
This initiative utilizes electronic tools (such as the Internet, multimedia computers, and other electronic
means), to both increase communication among all Superfund stakeholders and improve access to
Superfund information.
Page 14
December 1996
-------
STJPERFUND REFORMS ROUND TWO
I. ENFORCEMENT +
1. PRP SEARCH PILOTS .
EPA is piloting several procedures to improve the quality and timelines of PRP searches, make information
obtained more accessible, and conduct PRP searches toimore fully identify a larger universe of PRPs earlier
in the process.
2. EXPEDITED SETTLEMENTS ;
EPA is identifying and offering eligible parties expedited settlements (ability-to-pay settlements and early
de minimis settlements) at pilot sites.
3. ALLOCATION PROCESS
EPA is piloting a process to allocate responsibility for response costs among all parties at selected pilot
sites.
H. ECONOMIC REDEVELOPMENT
4(a&b). BROWNFIELDS INITIATIVE
This initiative is a comprehensive approach to empowering States, communities and other stakeholders
interested in economic redevelopment to work togetherjn a timely manner to prevent, assess, clean up,
and reuse brownfields (abandoned, idled, or under-used industrial and commercial areas).
4a. Brownfields Pilot Projects
4b. Community (Outreach
4c. REFINING CERCLIS
This initiative reduces the stigma associated with sites listed in CERCLIS by removing those sites with no
further interest under the Federal Superfund Program from the CERCLIS inventory.
4d. CLARIFYING NPL SITES
EPA has issued guidance that authorizes the Regions to clarify areas on or adjacent to NPL sites that are
determined to be uncontaminated.
4e. REMOVING LIABILITY BARRIERS
EPA is issuing guidance which identifies options to remove liability-based barriers to property transfers
at certain sites and describes the circumstances under which the Agency will issue comfort/status letters.
III. COMMUNITY INVOLVEMENT AND OUTREACH
5a. COMMUNITY ADVISORY GROUPS (CAGs)
This initiative encourages Regions to establish CAGs which provide a public forum for community members
to present and discuss then- needs and concerns about the decision-making process at sites affecting them.
5b. TECHNICAL ASSISTANCE GRANTS (TAGs)
EPA is encouraging the Regions to consider means to increase citizen involvement such as advance
funding of TAGs and 'the authorization of training for TAG recipients.
6. COMMUNITY INVOLVEMENT IN THE ENFORCEMENT PROCESS
EPA will identify and pilot enhanced, innovative approaches to community involvement in technical
settlement issues.
IV. ENVIRONMENTAL JUSTICE
7 A. TRAINING AND HEALTH SERVICE ASSISTANCE TO COMMUNITIES
EPA, in coordination with the U.S. Public Health Service, established the Medical Assistance Plan
(MAP) :
that provides health services assistance to citizens in proximity to Superfund sites.
To. JOB TRAINING AND DEVELOPMENT
EPA has developed interagency pilots to train and employ community residents living near Superfund
sites through classroom instruction and hands-on work 'experience.
December 1996
Page 15
-------
V. CONSISTENT PROGRAM IMPLEMENTATION
8. GUIDANCE FOR REMEDY SELECTION
EPA is issuing guidance for soil screening levels, land-use, and several presumptive remedies to
improve
consistency and to take advantage of streamlining opportunities in site characterization and remedy
selection.
9. RISK SHARING
9a. Implementing Innovative Technology
To share risks associated with implementing innovative technologies, EPA will agree to
underwrite
the use of certain promising innovative approaches for a limited number of approved projects.
i
9b. Identifying Obstacles to Using Innovative Technology
EPA will develop programs to share risks associated with implementing innovative
technologies by exploring and identifying contractor's concerns with the selection and use of
innovative technologies.
VL STATE AND TRIBAL EMPOWERMENT
10. VOLUNTARY CLEANUP PROGRAM
EPA has initiated a joint EPA/StataTribal effort to promote voluntary cleanup programs which are
designed to speed the cleanup of non-NPL sites.
11. INTEGRATED FEDERAL/STATE/TRIBAL SITE MANAGEMENT PROGRAM
EPA and States are developing a pilot program under which States, Territories, Commonwealths, and
Tribes
would oversee and compel PRP actions at selected NPL-caliber sites.
12. STATE/TRIBAL SUPERFUND BLOCK FUNDING
This initiative explores the interest of States and Tribes in a project to examine the feasibility of using a
single cooperative agreement to finance Superfund activities within State or Tribal boundaries.
Page 16
December 1996
-------
SUPERFUND REFORMS ANNUAL REPORT FISCAL YEAR 1996
SUMMARY OF STATUS AND NEXT STEPS, ROUND 3
Administrative Reform
Status
Next Steps
la. Establish National Remedy
Review Board
All Regions and eight other Agency offices have designated representatives to the National
Remedy Review Board (NRRB). The RRB has reviewed 12 proposed decisions at 11 sites.
Of the 12, five have progressed to "final ROD," and one to "proposed plan." As a result of
these six reviews, the Agency expects to realize future cost reductions of approximately $8
million. Overall, the Board's preliminary analysis indicates potential reductions in the
range of $15 million to $30 million in total estimated site cleanup costs.
As of October 10,1996, the RRB estimates there may be as many as 10-20
decisions reviewed in FY97.
ib. Establish New Remedy
Selection Management Flags
("Rules-of-Thumb")
EPA developed two fact sheets that were sent out for review by EPA Regional Offices,
other Federal agencies, and State environmental agencies in August 1996. The first fact
sheet describes remedy selection rufes-of-thumb, or key principles and expectations,
corresponding to three policy areas in the Superfund remedy selection process. The second
fact sheet describes a set of proposed management review triggers to promote nationally
consistent remedy selection decision-making.
EFA -will revise both fact sheets based on comments received. The ruies-of-
thumb fact sheet will be issued as guidance to EPA Regional offices as soon as
comments have been incorporated (expected timeframe - second quarter
FY97). The revised draft of the proposed management review triggers will be
presented at a national Superfund program managers' meeting as the basis for a
discussion on updating and consolidating management consultation
requirements for Superfund remedy selection decisions. The management
consultation process will be revised in FY97.
2. Update Remedy Decisions at
Select Sites
EPA issued this Reform guidance on September 27,1996; however, many Regions
anticipated its issuance, and completed a number of remedy updates earlier in FY96.
During FY96, remedy updates of all types that achieved savings resulted in a total savings
of over $280 million. Of this $280 million, over $250 million resulted from updates of the
kind identified in'the Reform guidance!
Headquarters will continue to work with the Regions on implementation of this
reform. /
3a. Clarify the Role of Cost in the
Remedy Selection Process
EPA issued a fact sheet, "The Role of Cost in the Superfund Remedy Selection Process,"
on September 10,1996. Through the distribution of this fact sheet, EPA hopes to ensure
that all stakeholders involved in the Superfund process fully understand the important role
of cost in remedy selection under existing law and policy and recent initiatives aimed at
enhancing the cost-effectiveness of remedial actions.
Implementation of this reform is complete.
3b. Directive on National
Consistency in Remedy
Selection
The Agency issued a Directive entitled "National Consistency in Superfund Remedy
Selection" (from Elliott P. Laws to Regional Division Directors) on September 25,1996.
This directive emphasizes the critical importance of maintaining appropriate national
consistency in the Superfund remedy selection process and requests that program managers
make full use of existing tools and consultation opportunities to promote such consistency.
EPA begins initiation of efforts to review and consolidate management
consultation requirements/activities in fall 1996.
4. Clarify Information
Regarding Remedy Selection
Decisions
EPA developed a draft summary sheet that was sent out for review by EPA Regional
offices, other involved Federal agencies, and State environmental agencies in August 1996.
The summary sheet provides a tool for clearly presenting, in a standardized format, the
context, basis, and rationale for site-specific Superfund remedy selection decisions.
Once comments are incorporated, EPA will issue the summary sheet as an
interim product and explore its use as a suggested format for summarizing
critical site information in support of Agency management briefings. Federal
Facilities will also be invited to pilot its use in their programs as well.
Page 17
December 1996
-------
Administrative Reform
5a. Community Participation In
Designing Risk Assessments
5b. PRP Performance of Risk
Assessments
6a. Establish National Criteria on
Superfunci Risk Assessments
6b. Standardize Risk Assessments
6c. Utilize Expert Workgroub on
Lead
7. Establish Lead Regulator for
Federal Facilities
8. Consider Response Actions
Prior to NPL Listing
9. Delete Clean Parcels from the
NPL
Status
EPA will pilot a process for involving stakeholders ewly in the risk assessment process.
Headquarters staff is currently working with the Regions to identify candidate sites. Many
Regions currently involve stakeholders in designing site-specific risk assessment and in the
site assessment process. Several Regions have either developed fact sheets or additional
guidance on this reform.
On January 26, 1996, EPA issued a new policy to allow PRPs to conduct a risk assessment
at most sites where they are also performing the RI/FS. The new policy removed the
previous need for the Regions to consult with Headquarters before authorizing a PRP to
conduct the risk assessment. Eight Regions have indicated that they are identifying sites
where PRPs will be conducting the risk assessments.
The Agency has prepared draft documents that: outline technical approaches to risk
assessment, standardize risk assessment reporting data tables, and provide risk assessment
quality assurance checklists. A workgroup has completed a preliminary review of the
outlined technical approach and the standardized risk assessment data reporting tables.
EPA issued draft standard risk assessment data reporting tables in July 1996. Comments
have been received and are being addressed by EPA.
EPA has drafted short issue reports that are being used broaden dialog within the Agency
and with outside stakeholders. EPA has identified technical and policy issues in 14 focus
areas.
An April 17, 1996 memorandum to senior Regional managers included a request for
information on residential lead risk assessments. A draft plan also was proposed for
achieving these goals. Comments on the draft plan were received at the end of May.
Currently, the analysis of residential lead risk assessments is in the planning stages.
Headquarters has convened a workgroup to develop guidance on identification and
implementation of the single regulator concept. Headquarters has held 13 workgroup
meetings since the fall of 1995. Some Regions have been able to begin implementing this
concept in advance of guidance issuance.
EPA HQ has worked with the Regions and States during FY96 to develop a policy
directive to implement this reform. EPA HQ is currently evaluating different options that
would take into account response actions occurring in the post-site inspection stage and
their impact on NPL listing. In August 1996, HQ OERR conducted another round of
review and coniment on the reform and ideniifled the critical issues io be resoived.
EPA sent guidance to map and track partial deletions at NPL sites to the Regions on April
30, 1996. EPA published four Notices of Intent to Delete (NOIDs) in three Regions during
1996. In addition, Region 10 published two partial deletion notices in 1996. Other
Regions are re-evaluating sites to determine if a partial deletion is warranted.
Next Steps
Pilots will be evaluated using a case-study approach. Findings will then be
used to develop guidance describing the role of community stakeholders in the
risk assessment process.
Implementation of this reform is complete.
The workgroup will issue a generic Statement of Work (SOW) on risk
assessments in September 1997.
Information from stakeholder dialog meetings will be evaluated and individual
issues will be assigned to work groups to be further developed and addressed.
EPA convened a national workshop on mode! validation in October 1996.
Regional support is needed for sending information to Headquarters,
establishing an effective structure for dialog, and other issues. Contractor
efforts will have standard operating procedures for collection of data that will
be reviewed by the Technical Review Workgroup for lead risk assessments.
The workgroup will complete major deliberations and EPA will draft guidance
and circulate guidance more widely to States for their input. EPA will issue
final guidance in mid-FY97.
EPA will review and summarize State comments, as well as cross-reference
them against EPA Regional comments for any final issues that need to be
addressed. EPA should finalize the reform in FY97. The October 1992 NPL
regulation, "Guidance for Setting Priorities for NPL Candidate Sites," will be
amended by FY97.
Many Regions have indicated that they have sites where they would like to
delete portions and Headquarters has received several draft NOIDs for review.
Page 18
December 1996
-------
Administrative Reform
Status
Next Steps
10a. Promote Risk-Based Priority
Setting at Federal Facility
Sites
Headquarters has obtained internal comments (including Regional input) on guidance
drafted for the Regions which will address the role of risk and other factors (e.g., cost,
community concerns, environmental justice, cultural considerations) in setting priorities at
Federal facility sites. Regions have begun to implement the concept of risk-based priority
setting at Federal facility sites.
EPA will issue final guidance in the second quarter of FY97.
lOb. Promote Risk-Based Priority
for NPL Sites
Projects are evaluated based on five criteria: 1) risks to humans; 2) ecological risks; 3)
stability of contaminants; 4) contaminant characteristics; and 5) economic, social, and
program management considerations. During FY96,42 projects totaling over $276 million
were funded in accordance with National Risk-Based Priority Panel (Panel)
recommendations. By early FY97, the Panel had ranked projects approaching $1 billion in
cleanup costs. The Panel met in October 1996.
The Panel will reconvene in early spring 1997.
ii. urphan share compensation
Interim finai guidance was issued on June 3,1996. A Headquarters assistance ieam has
been established to assist with the implementation of this reform. The team is working
closely with DOJ and the Regional staff to implement this reform. The Agency offered over
$57 million in FY96 to potential settling parties in recognition of the orphan share at 24
Superfund sites across the United States.
In FY97, EPA will continue to bear a portion of the orphan share by
compromising costs at sites where parties agree to perform cleanups. These
agreements follow the Agency guidance issued in June 1996 and are limited by
existing appropriations. In addition, EPA will be considering possible
changes to the guidance, including applicability to early de minimis settlors,
within the bounds of these parameters.
12. Site Specific Special Accounts
In implementing this Reform, the Regions established 23 Special Accounts in FY96,
containing a total of $78 million. As of September 30,1996, EPA has set up a cumulative
total of 59 Special Accounts. The total balance of funds available in Special Accounts is
$261 million, representing $226 million in principal. Thirty-five million dollars in interest
(interest is through August 31,1996) is also now credited to these accounts and is available
for future response actions at each site.
EPA will be providing general program and financial guidance to the Regions
in the near future. The Agency will continue to monitor the success of this
reform.
13. Equitable Issuance of
Unilateral Administrative
Orders (UAOs)
EPA issued a memorandum to the Regions in August 1996 that establishes procedures for
Regional Staff to document their reasons for proposing that certain PRPs be excluded from
UAOs. The guidance also reaffirms EPA policy to issue such UAOs to the largest number
of PRPs appropriate.
During FY97, the Agency will establish a process for ensuring that the Regions
prepare the necessary documentation.
14. Revised De Micromis
Guidance
On June 3,1996, EPA has issued new guidance and models designed to streamline and
simplify the process to protect contributors of extremely small amounts of waste (de
micromis contributors) by creating routine settlement practices where practicable.
EPA will continue to identify those sites where implementation of this reform
is appropriate.
15. Adopting Private Party
Allocations
EPA established a national workgroup to determine the parameters and identify
opportunities for implementation of this reform. The Agency has adopted private party
allocations at several sites, including the Doepke Holliday Site in Kansas where the PRPs
will perform the cleanup of the site and reimburse 100% of EPA response costs.
The workgroup determined that current Superfund policies are adequate for
providing direction to implement the reform and, as a result, no new guidance
is planned at this time.
16. Reduced Oversight for
Capable and
CooperativePRPs
On July 31,1996, an EPA Regional/Headquarters workgroup issued a six-page directive to
implement this new reform. EPA Regions have identified approximately 100 sites where
reductions in oversight of ongoing work for cooperative and capable PRPs have occurred
or will occur, significantly reducing costs at some of these sites.
Regions will notify cooperative parties that they have already received reduced
oversight or will receive reduced oversight. Regions will be encouraged to
provide PRPs with an up-front estimate of contractor costs for oversight.
Page 19
December 1996
-------
Administrative Reform
17. Authorize Remedy Selection
by States and Tribes
18. Pilot Community-Based
Remedy Selection Process
19. Establish Superfund
Ombudsman in Every Region
20. Improve Communication with
Superfund Stakeholders
Status
EPA has shared information regarding Regional efforts in shifting remedy selection to the
States. The National workgroup has developed criteria and a process to select new pilots
and to monitor and assess the results.
Regions have identified sites where they are using or plan to use a consensus-based
approach to select a remedy for a site. In an Oakridge, Tennessee site, $160 million in
cleanup costs were saved through community participation.
All 10 Regions nominated an Ombudsman by the prescribed date of March 31, 1996. The
Joint Headquarters-Regional Workgroup (Workgroup) attended the first EPA Ombudsman
Conference and Training Seminar.
EPA activated the Headquarters Superfund Homepage in March 1996. All of the Regional
offices also have developed homepages.
Next Steps
By winter 1997, EPA will develop "lessons teamed" for past and ongoing
pilots and will identify new pilots.
A Headquarters/Regional workgroup will look at sites to identify factors that
affect community understanding and participation in the cleanup process. By
December 1996, the workgroup will issue guidelines on empowering local
citizens and stakeholders.
The Workgroup will continue to provide assistance to the Regional
Ombudsmen as needed and will also perform periodic evaluations. The
Superfund Regional Ombudsmen will have another conference in early 1997 to
further refine their negotiation, facilitation, and conflict resolution skills.
A workgroup involving Headquarters and the Regions will develop procedures
for consistency of electronic information and will identify sites and stakeholder
groups to use as pilots for sharing electronic information,
Page 20
December 1996
-------
SUPERFUND REFORMS ANNUAL REPORT FISCAL YEAR 1996
SUMMARY OF STATUS AND NEXT STEPS, ROUND 2
Administrative Reform
Status
Next Steps
1. PRP Search Pilots
In 1995, EPA held a national conference on PRP search procedures and is now reorienting
the PRP search process to facilitate expedited settlements and more fully identify a larger
universe of PRPs earlier in the process. EPA provided early PRP search resource packages
for Regional pilot participants. Using at least one streamlining technique, EPA is
conducting pilot searches at 15 sites under Superfund Reauthorization Act of 1994 (SRA)
provisions to determine the feasibility of the proposed search timeframe.
EPA expects to finalize the Revised PRP Search Manual in early 1997, after
Regional review and comment. Other actions EPA has tentatively planned
include Regional training/information-sharing. EPA may hold a national
conference in 1997.
2. Expedited Settlements
EPA developed the following tools io assist with the sctiieuiciU UJL «£ rniriirriis anu auiiity-
to-pay parties under this reform: 1) "Overview of Ability-Pay-Guidance and Models" (fact
sheet), 2) "Standardizing the De Minimis Premium" (guidance document), 3) Revised
Model CERCLA Section 122(g)(4) De Minimis Contributor Consent Decree (guidance
model), and 4) Revised Model CERCLA Section 122(d)(4) De Minimis Contributor
Administrative Order on Consent (guidance model). To date, EPA has successfully
completed five expedited settlements.
r;i*A ...111 ., it • —I :~~ it !««.A^AMnA «f -.,.«....:«*. n».nll ..,«,*«*,
Cm Will Cuillllluc lu biiijjiicuiirC uic inifjuiiaii^c ui ii»uiv/viiig amaii WCULV
contributors from the Superfund enforcement process. Several expedited
settlement pilots are ongoing. EPA also intends to issue four policy documents
regarding the ability-to-pay determinations in Superfund settlements.
3. Allocation Process
As of September 1996, EPA has offered to pilot the allocation process at twelve Superfund
sites. Two of the sites reached settlement outside the allocation process, leaving ten active
pilot sites. EPA has learned numerous lessons about the allocation process, including:
identifying additional PRPs through a nominations process requires collaboration between
the Agency and PRPs; allocator selection, hiring, and payment may need revision;
resolution of issues during the allocation process benefits the parties and'expediJes
settlement; and settlement before the allocator's report may be an option.
The Agency will continue to implement the allocation process at pilot sites.
4a. Brownfields Pilot Projects
By the end of FY96, EPA announced the selection of 76 Brownfields pilots to be funded
through cooperative agreements at up to $200,000 each for a two-year period. EPA has
signed Memoranda of Understanding with other Federal partners to coordinate issues
related to Brownfields redevelopment and to leverage additional opportunities. Guidance
and other initiatives have been announced by EPA. The "Asset Conservation, Lender
Liability, and Deposit Insurance Protection Act of 1996" was passed. EPA has archived
over 27,000 sites from CERCLIS.
EPA will announce an additional 25 pilots in FY97 and will provide guidance
and funding to capitalize revolving loan funding programs. EPA will
announce new Action Agenda commitments beginning calendar year 1997.
4b. Community Outreach
Each Region has established a Brownfields coordinator and headquarters has assigned five
staff members to support the project. EPA is promoting and fostering job development and
training through partnerships with Brownfields pilot communities and community colleges.
EPA has established an environmental education and training center to provide
comprehensive technical-level training.
EPA will continue outreach to stakeholders on Brownfields involvement.
Technical assistance will be provided through existing partnerships and pilots
to other Federal agencies and non-governmental organizations.
4c. Refining CERCLIS
In June 1996, EPA provided guidance on site types eligible for archiving and initiated
efforts to research sites in CERCLIS and make archive decisions. Approximately 27,000
total sites have been archived from CERCLIS through FY96.
EPA anticipates archiving over 1,000 additional sites from CERCLIS per year
over the next several years based on completing Superfund activities at
existing and new sites.
Page 21
December 1996
-------
Administrative Reform
Status
Next Steps
4d. Clarifying NPL SHes
EPA sent guidance to the Regions to map and track partial deletions at NPL sites on April
30,1996. Several Regions have published Notices of Intent to Delete (NOIDs) and the
Regions are re-evaluating sites to determine if a partial deletion is warranted. EPA issued
final soil screening guidance in May 1996.
The partial deletions portion of this reform is currently being implemented as
Reform 9 (i.e., Delete Clean Parcels from the NPL) in the third round of
Supcrfund reforms.
4e. Removing Liability Barriers
EPA issued the following guidance documents that provide some assurance to prospective
purchasers, lenders, and property owners that they need not be concerned with Supcrfund
liability: "Guidance on Agreements with Prospective Purchasers of Contaminated
Property"; "Policy Towards Owners of Property Containing Contaminated Aquifers";
"Policy on CERCLA Enforcement Against Lenders and Government Entities that Acquire
Property Involuntarily;" and "Policy on the Issuance of Comfort/Status Letters."
Efforts will continue on the development of tools to provide some assurance
that entities dealing with contaminated property need not fear incurring
Federal environmental liability. To identify, describe, and differentiate
between the various tools available, EPA is creating the "Catalog of Tools for
Managing Risk at Contaminated Properties."
5a. Community Advisory Groups
(CAGs)
EPA issued the "Guidance for Community Advisory Groups at Superfund Sites" in
December 1995, encouraging the use of CAGs at sites. As of September 1996, there were
23 CAGs. EPA has completed a document containing case studies on five CAGs planned
for distribution early in FY97.
EPA will continue to evaluate existing CAGs and their impact on community
involvement, and identify and develop new tools to promote and assist CAGs.
Several fact sheets on the CAG program should be ready for distribution early
in FY97.
5b. Technical Assistance Grants
(TAGs)
During FY95-96, EPA revised the TAG rule. The new rule contains several provisions to
simplify the TAG process. The provisions include: cash advances for grantees to provide
them with working capital; elimination of the three-year budget period which allows
groups to determine their own budget period according to site-specific needs; and the
removal of the 20% administrative cap.
Preparations are underway to publish the proposed, revised TAG rule by June
1997. Additionally, options are being explored to authorize the use of TAG
funds for training and advance funding.
6. Community Involvement in the
Enforcement Process
EPA initiated pilot projects at 13 sites in nine Regions. Piloted activities include
community involvement in Statements of Work (SOWs), Feasibility Studies (FSs), and
Remedial Designs/Remedial Actions (RD/RAs), and community communication and
cooperation with PRPs.
EPA is evaluating the impacts of enhanced community involvement on both
the settlement negotiation process and the studies and cleanups themselves to
identify those techniques that are most successful in strengthening community
participation.
7a. Training and Health Service
Assistance to Communities
The Medical Assistance Plan (MAP) was established to help under-served people living
near hazardous waste sites. Although four sites were targeted for testing during FY95,
funding was available to test only one site, the Del Amo/Montrose site in Torrence,
California. At the Del Amo site, EPA's Region 9 office has taken steps to temporarily
relocate residents living near the Superfund site.
EPA obligated $400,000 to continue the Del Amo project in FY96. In
addition, EPA and the Public Health Service will continue to seek funds
sufficient to finance additional pilot projects in FY97.
7b. Job Training and Development
EPA is facilitating locally coordinated planning both to provide quality worker training and
to ensure that brownfields sites hire workers from local job training programs. EPA has
awarded 20 National Institute of Environmental Health Sciences (NIEHS) minority worker
training grants. EPA is working with the Hazardous Materials Training and Research
institute (HMTRI) to expand environmental training and curriculum development at
community colleges near Brownfields pilot communities.
EPA plans to continue to work with the NIEHS minority worker training
program and hopes to develop additional pilots in brownfield areas. The
Agency has chosen two pilot sites for environmental curriculum development.
HMTRI plans to increase the number of community colleges offering
environmental work force training programs over the next year.
Page 22
December 1996
-------
Administrative Reform
8. Guidance for Remedy Selection
9a. Risk-Sharing: Implementing
Innovative Technology
Ok Dieir.chn..:..... r,io.,i:r,,:,.n
Obstacles to Using Innovative
Technology
10. Voluntary Cleanup Program
11. Integrated Federal/State/Tribal
Site Management Program - *
12. State/Tribal Superfund Block
Funding
Status
EPA issued final soil screening guidance on May 17, 1996 which complements the ongoing
Superfund Accelerated Cleanup Model initiative and provides the framework for other
cleanup efforts. On May 25, 1995, EPA issued a directive titled "Land Use in the
CERCLA Remedy Selection Process" which clarifies that land use should be considered in
risk assessment and remedy selection. The Agency has issued various presumptive
remedies, presumptive response strategies, and user's guides. EPA estimates time savings
from 36% to 56% and future cost reductions up to 60% at municipal landfill pilots.
Several Regions have identified candidate sites for the risk-sharing initiative. In Region 1,
EPA has entered into a risk sharing agreement with PRPs at a New Hampshire site. EPA
agrees to pay half the cost of the innovative technology, not to exceed $3.5 million, if the
technology does not fulfill expectations and additional remedial action is necessary.
CD A it; A-vrtanA'inn thr* svtuAranr» f\f inrfamnifipatinn tn inrlttAf* hnth thf* nritnt* t*r\ntrat*tr\r fin A
the innovative technology contractor when indemnification is offered so that the
contractors can more easily pursue the use of innovative technologies.
EPA issued a memorandum in November 1996 on an interim approach for Regional
relations with State voluntary cleanup programs. This memorandum sets out baseline
criteria that will be considered as part of the evaluation of a State or Tribe's application for
funding the development or enhancement of a voluntary cleanup program. Eight States
have already signed Memoranda of Agreement (MOA) with their respective Regions
concerning how EPA and the States will work together in addressing voluntary cleanup
program sites.
On May 2, 1995, EPA issued final guidance on a program which allows EPA to defer from
considering listing NPL-caliber sites on the NPL while States and-Tribes initiate and - • -
oversee PRP responses. Since 1994, a total of eight sites have been formally deferred, while
several sites have been informally deferred or are under consideration for deferral.
EPA has established a 50-member work group on block funding which includes input from
17 States and Tribes, Ten States and one Tribe are currently participating in efforts to pilot
the block funding concept. Their discussions will be used in the development of the final
report for this reform.
Next Steps
EPA is developing a new land use directive and presumptive remedy guidance
on manufactured gas plants, PCB sites, VOCs, municipal landfills, metals in
soil, and grain storage for issuance in FY97.
The Agency is in the process of preparing guidance on implementing the risk
sharing initiative, which is expected by June 1997. EPA is developing
mechanisms to engage State agencies in this initiative.
fmnlamontatinn nf thic rafnrm to pnmnlato
EPA and the States will assess how the MOA process is working and will seek
public comment on and finalize guidance on State voluntary cleanup programs
bytheendofFY97.
The Agency will continue to implement the deferral program.
EPA is scheduled to develop a preliminary report documenting obstacles in the
award and utilization of Superfund resources and providing recommendations
to improve the award and utilization of Fund monies to States and Tribes early
inFY97.
Page 23
December 1996
-------
------- |