United States
Environmental Protection
Agency
Office Of
The Administrator
(A101F)
171 R-92-012
ApriM992
Delegating Superfund
Responsibilities: Implementation
Strategies And Political
Ramifications Of A State-Wide
Lead Metal
       28   ^
                           Printed on Recycled Paper

-------
                           DISCLAIMER

This report was furnished to the  U.S.  Environmental Protection
Agency by  the student identified  on the  cover  page,  under a National
Network for Environmental Management  Studies  fellowship.

The  contents are essentially as  received from the  author.  The
opinions, findings,  and conclusions  expressed are  those of the author
and  not necessarily  those of the U.S. Environmental  Protection
Agency.  Mention,  if any, of company, process, or product names  is
not to be considered as an endorsement  by the U.S.  Environmental
Protection  Agency.

-------
Delegating auoerfupd Responsibilities;      ...
implementation strategies and political Ramifications of
A state-wide Lead Model
By Steve Schwartz


National Network for Environmental  Management  Studies
Office of Emergency and Remedial  Response, U.S.  EPA
11/25/91
                        U.S. tVivl.i'.ircenta! Protection Agency
                        Ki,,;i;3ii'.':.(,t;»>v (P!.-!2J)
                        7? \vv%< •. ^..',. . •   ;--:.-5vdJ i?th Floor

-------

-------
EXECUTIVE SUMMARYI



PURPOSE:

     Federal  officials manage  the great  majority of  Superfund

program work. States have  assisted in  this process on a site-by-

site basis. This contrasts with other EPA programs  in which states

take  responsibility  for all  work  within  their  boundaries.  This

paper presents  a model for an  increased delegation of Superfund

responsibilities  to  qualified states and  tribes.  Guidelines for

implementing  this policy shift are addressed as well as political

ramifications for various  stakeholders.



BACKGROUND:

      This   paper  was  written  with   a   National  Network  For

Environmental Management Studies Fellowship grant sponsored by the

Office   of .  Emergency  and   Remedial   Response,  United  States

Environmental Protection Agency.



ASSUMPTIONS:

      1.    Certain states  are at  least as qualified as  the
           EPA to cover all aspects of  Superfund  work.
      2.    A  site  by  site  delegation to these  states  is
           costly,    inefficient,    time    consuming    and
           unnecessary.                            ...
      3.    States will  only take on added responsibilities if
           a delegation program includes incentives to
           encourage  this.

-------
PRINCIPAL RECOMMENDATIONS:
          Delegation  should  provide maximum  flexibility  in
          implementing clear federal standards for cleanup fo
          sites.
          Model delegation after EPA's Underground Storage
          Tanks program.
          Authorization  should  be  contingent  on a  state's
          adoption of  a policy  of  "No Less  Stringent"  than
          federal   regulations.
          EPA  regional - offices  should  make  decisions  on
          authorization  with formal  input from  interested
          parties  including  industry and  the  environmental
          community.
          Create and  write  into law a mechanism  for state-
          wide lead.  Alternatively, expand on the Core Grant
          program  to  facilitate the transfer of  funding  to
          states.
RAMIFICATIONS:

     A delegation will be met with mixed response both inside and

outside of  the EPA.  States  and  industry  are likely  to  support

enhanced authority for qualified  state  programs.  Opposition will

likely come from Congress due to the high political visibility of

Superfund. EPA officials represent a range  of views.  To overcome

any  opposition  and  to   ensure   effective  implementation  EPA

executives must strongly support a delegation program.

-------
INTRODUCTION;
     This  paper  proposes  an  improved  process  of  delegating
responsibilities for  Superfund  program work to  state  and tribal
governments. The paper describes the program briefly, including a
description  of  state involvement,  as well  as criticisms  from
various  analysts.  The next section  examines  the desirability of
delegation vis-a-vis clients affected by Superfund. Finally, using
a  comparison  of  three  Environmental Protection  Agency  (EPA)
programs the  paper  derives  an  improved  method of  delegating
responsibilities from federal jurisdiction to states.
       Delegation to state and tribal government  is consistent with
the  current Administration's views  of federalism  as well as  the
legislative intent of  the Comprehensive  Environmental  Response,
Compensation  and  Liability  Act   (CERCLA)  and  the   Superfund
Amendments  and  Reauthorization  Act  of  1986   (SARA).  To fully
 implement the policy changes recommended  in this paper the Agency
will need  to obtain statutory changes from Congress during  the
reauthorization process in 1993.
      in comparison to Superfund, both the Resource Conservation and
 Recovery Act (RCRA) and the Underground Storage Tanks program (UST)
 represent a categorically larger amount of state managed work.  Both
 programs  provide  insight into an appropriate   policy  design for
 Superfund.  RCRA has  advantages in that it  provides  a state  with
 full  authorization to implement  the program and includes clearly
 defined areas for federal intervention including when to revoke a
 state's authorization.   UST provides considerable flexibility to

-------
Regional offices  determining  whether  or  not to delegate. The UST



program also  offers states flexibility  in  designing  a system to



meet the federal  standards. The UST program process of delegation



provides the fundamental elements for the proposed Superfund model.



However, the model incorporates aspects of both systems in order to



best address  the  large  budget  and high political  visibility of



Superfund.







METHODOLOGY:



     This  paper   represents  research  at  EPA  headquarters  in



Washington  D.C.,  Arlington,  Virginia,  and EPA  Region 9  in San



Francisco. In addition representatives of diverse advocacy groups



were interviewed in San Francisco, Washington,  D.C. and Sacramento,



California. These lobbyists represent  waste  management officials,



and  environmental  organizations.  Written  research  materials



included EPA  publications, and  to a lesser  degree,  independent



non-governmental  sources.



     The paper presents a process model illustrating, broadly, the



crucial  actors  involved  in  decision-making for  each  of  the



programs.   Systems  diagrams  based on  the  work  of   Beer1,  and



Schoderbek et. al2 are used. The paper attempts to build on recent



work done on increasing the states'  role in implementing Superfund.



This includes brief  comment  on  two  EPA  commissioned  studies,



Enhancing State Superfund Capabiliites;  A Nine-State Study and An



Analysis of State  Superfund Programs;  A Fifty State Study.3



     Research was  funded by a  grant from the National Network For

-------
Environmental Management  Studies.  The  grant is sponsored  by the
Environmental Protection Agency's Office of Emergency and Remedial
Response in Washington, D.C.

SUPERFUND:
     The  Comprehensive Environmental Response, Compensation and
Liability Act was  first passed in 1980 to  ensure  cleanup  of the
nation's worst hazardous waste sites. Superfund accomplishes this
by  forcing  responsible parties  to pay  for. the  problems  they
created. The act created a  $1.8 billion fund to pay for sites for
which responsible parties could not be identified or forced  to pay.
Additionally,  the  fund  provides  for guick  emergency   cleanup
measures while litigation or negotiation takes place. The Superfund
Amendments  and  Reauthorization Act  of 1986  (SARA)  provided for
growth  in the fund to a projected $8.5  billion dollars, and called
for  expanded citizen  involvement.  In  1990 Congress  approved  a
simple  reauthorization  of  Superfund  which  maintained   current
statutory  authority while continuing the taxing authority.

PRESENT STATE AND  TRIBAL INVOLVEMENT IN SUPERFUND:
      CERCLA  reflects  Reagan/Bush era federalism represented  by
Reagan's  1982 state of  the union address,  Executive Order  12372
 (1982)  and  Executive  Order 12612  (1987).  Executive Order  12612
requires  federal agencies "to accord states maximum flexibility in
administering federal programs, and to  avoid or minimize preemption
of state  policies."4

-------
     States  are  presently  used  predominantly  to  do  response

actions. CERCLA authorizes the federal government to transfer the

necessary  funds and  management  responsibility  to  a  states,  to

political subdivisions of states  or to federally recognized Indian

Tribes. Federally  recognized indian  tribes  are treated virtually

the same as  states in terms of  CERCLA. This paper  uses the term

"states" interchangeably with "states and tribes" unless otherwise

noted.

     The agency or government taking primary  responsibility for

cleanup at a particular site is known as the "lead". Regardless of

what  level  of  government  has  the  lead,  the  National Oil  and

Hazardous Substances Pollution Contingency Plan (NCP)   (40CFR Part

300) sets the regulatory standards that must be'followed. The NCP

and CERCLA as amended reguire that EPA work with States during:

          1) Negotiations with potentially responsible
             parties  (PRP's)
          2) The National  Priorities List  (NPL)  listing and
             deleting process
          3) Study of the site to determine cleanup options
          4) Selection and Implementation of the Remedy5


Before EPA will take remedial action within a state,  that state

must provide assurances to  the Agency. The  state must commit to:

ensure  availability   of   a  disposal  site,  and   assume  full

responsibility for future operation and maintenance. States have a

further obligation to pay  a portion  of any  expenditures from the

fund.  State contributions are either  10 or 50 percent depending on

whether or not  the state is considered a responsible  party.  The

maximum burden, fifty percent, is only applicable for sites which

-------
the  state  or  a  political  subdivision  operated at  the time  of

disposal.

     In the early 1980's state waste management officials expected

to have  a considerable  role  in the implementation  of  Superfund

according to  Stan  Phillippe,  California Toxic Substances Control

Division. Phillippe is the former Chair  of the CERCLA Subcommittee

at the Association of State and  Territorial Solid Waste Management

Officials (ASTSWMO). The states  reduced  their  role when they found

there were  "two  EPA project managers reviewing  for  every one we

had",  says  Phillippe.6 The  trend has again  begun to reverse

recently. The number of  state-leads on remedial activities have

increased.7  EPA  is  supporting  further involvement  of  states

according  to "State   and  Local  Involvement  in  the   Superfund

Program", a  Fall 1989 Agency  fact sheet:

      "As the Superfund  program  continues  to  address the
      hazardous  waste  issue  nationwide,  State  and   local
      governments will assume an  increasingly active role  in
      confronting issues at Superfund sites."

A policy designed  to  increase state involvement,  if designed well,

should  improve  Superfund generally and help the Agency  address

criticism of the program.



SHORTCOMINGS OP  SDPERFUND AND PROPOSALS FOR REFORM:

      The Superfund program has  a history of criticism from  the

media,   academia,  the  business  community,  the  environmentalist

community,  state governments and EPA officials alike.   According to

 a 1989  Los Angeles Times article:

-------
     "More than 30 separate studies have criticized the slow
     pace  of  hazardous waste cleanup  under  the (Superfund)
     program, which has been saddled with cost' over-runs and
     tainted by scandal."9


Public frustration has grown as the estimated cost per cleanup site

rose from five to  seven million dollars in 1980 to an estimated $25

million  in 1989.10    While some  analysts complain  of too much

paperwork, others claim that a lack of bureaucratic oversight has

led to contractors, with a conflict of interests, cutting corners

with their site cleanup work. The media  has  often  pointed to the

low number of  sites that are taken off the National Priorities List

(NPL).  Critics also  site  the  overly litigious  nature  of  the

program. Michael Pickard of the Sacramento Toxics Campaign says it

is "cheaper to hire lawyers to delay rather than cleanup11.11

     When William Reilly became Administrator of  EPA he called for

a full review  of the program. The resulting broad critique produced

two reform oriented documents: A Management Review of the Superfund

Program.  known   as   the   90-Day   Study,  and  the  accompanying

Implementation  Plan.12  These  documents,  along  with  a  recent

emphasis  on  Total Quality Management,  define the guidelines  of

change for the system. The next section reviews reforms recommended

by the EPA and other organizations.

     The paper identifies seven strategic goals supported with 48

specific recommendations. Only one of these  specifically mentions

the potential  role of states in helping meet Superfund challenges.

A second point implies an increased role for states.  Specifically

recommending that EPA:

-------
     "Identify more  effective  ways  to  include  interested
     parties in the policy debate  at  a  national  level—start
     a national dialogue with Superfund's many constituencies
     on important elements of the  program."
     Problem areas identified by the  management  review team could be
addressed in numerous ways. In many cases the best approach would be
delegation. However,  the EPA studies consistently overlook this policy
option. For example  the "90  Day Study"  calls for:  "reduction in the
Regional Project Manager workload, and expansion  of the work force and
modifying   expected   accomplishments."14  From  the   pro-delegation
perspective which this paper adopts,  such a recommendation invites a
larger state role. The  committee instead recommended more EPA staff
be hired  to achieve  the  objectives.  Similarly,  the report calls for
"Encouraging   full  participation   by communities."15  Again  greater
utilization of state officials  could achieve this.
      The  agency  responded to recommendations in  the  "90 Day Study"
with a variety of efforts relating to delegation. EPA began working
with the  Association of State and Territorial Solid Waste Management
Officials  and the  National Governor's  Association  to  meet   with
representatives  at  the  state  level  seeking ways to improve  state
involvement.
      While the recommendations  were beginning to be considered within
the  Agency,  senior  management was  simultaneously planning a  pilot
program in Total Quality Management (TQM) . These executives decided to
test TQM  in  two EPA offices including  the  Office of Emergency and
Remedial Response; the Superfund Office. TQM strategies have improved
 relations  between  EPA headquarters and  regional offices.  Regional
 Superfund  coordinators  are required  to prioritize  their top  five
                                  9

-------
hazardous waste sites; reducing review work at headquarters. The EPA

document Incorporating TOM Into OERR. identifies two crucial "building

blocks" of  the TQM program;  a  client or customer  orientation,  and

delegation  of  responsibility.16  The Superfund program has  a variety

of clients  with often conflicting  priorities.  The TQM  approach to

management can provided many insights on how to plan a delegation to

qualified states.



ALTERNATIVE FORMS OF DELEGATION:

     To preview, "state-wide lead" and "site-by-site" are two models

used by different EPA programs to delegate responsibility to states.

This  paper  has  argued that  some form  of  increased delegation of

Superfund responsibilities  to states  and tribes is  practical,  and

desirable  from the  perspective of  increased efficient cleanup of

hazardous waste  sites.  Four policy options are  available  under the

current Superfund system:

     1. Continuing federal lead on the majority of sites
        while occasionally allowing state lead management on
        a site-by-site basis: status quo.
     2. Full delegation of Superfund to the 50 states and
        relevant tribal governments: orthodox federalism.
     3. Selectively delegate to specific states or tribes a
        lead role for all the sites in their political
        jurisdiction: state-wide lead.
     4. Delegate parts of Superfund,  i.e.  community relations
        work, or all enforcement sites:
       • piecemeal state-wide lead.



The next  section recommends a model  for implementing the preferred

option, state-wide  lead;  option 3. Before  developing a process for

deciding  which  states  are  qualified  it  is  appropriate  to review


                                  10

-------
previous work by the agency  that sheds light on this question.

     The Q  state study and  the  Fifty state Study  each highlighted

specific aspects  of  state capabilities in various  states.  The main

value  of these  two  detailed analyses  was  in demonstrating that

different states have alarmingly  varied abilities to manage Superfund

responsibilities  at this  time.  For  example,   the  number  of  staff

working on hazardous waste cleanup range from eleven  states which have

10  or fewer  states  to eight  states  which have over  100 employees

working  in  this  area.17

      This contribution notwithstanding,   the reports must be  viewed

viewed with caution  due to a presupposition underlying  the  analysis.

The reports imply that quantified description of state capability  can

adequately  guide  decisions   regarding  a  state's  qualifications  to

implement  Superfund responsibilities.  Such "bean  counting"  of  the

number  of  toxicologists or the size of the state program in dollars

may cause  decision-makers to overlook the bigger picture.  The Nine^

state Study warns against making this mistak explicitly:

      The most significant lesson of the study is that a  state
      program should always be looked at  comprehensively—not
      just   in  terms  of how many dollars are avialable.  Many
      different  programs   can be  constructed  on  the   same
      resource foundation  through  different combinations  of
      approaches.18

 Following  the UST model, the important issue should be a commitment to

 policies and regulations  "No Less Stringent" than the federal policy.



 THREE SYSTEMS FOR MANAGING STATES INVOLVEMENT:

      This section applies a systems or "process" approach to compare

 three EPA programs;  the Resource Conservation and Recovery Act  (RCRA),

                                  11

-------
the Underground  Storage Tank  program  (UST)  and the  Comprehensive



Environmental Response,  Compensation and Liability Act ("Superfund").



Identifying advantages  to  each of  the  first two systems  will shed



light on appropriate changes for the implementation of Superfund.



     RCRA, UST and CERCLA each deal with hazardous waste management.



RCRA  prescribes   preventive work  to  avoid  future  damage  to  the



environment while CERCLA is concerned with cleaning up damage already



done.  UST addresses both preventive and cleanup work. Though different



programs utilizing very different  resources,  comparison can provide



insight to EPA strategists considering delegation of responsibility to



states and tribes.



     Delegation to states in the Superfund program is done on a site



by site basis, a strong  contrast to the other two programs. The system



of  state authorization used  for  UST  was  designed  after the RCRA



program and deliberately sought to improve upon that program.    Lite



CERCLA, RCRA and UST delegation programs represent an EPA response to



Reagan  Administration  new  federalism.   The  next  section describes



delegation systems in the three programs.







      The Resource Conservation and Recovery Act was passed in 1976.



Section  III,  subtitle C of the act addresses one key goal of RCRA:



"to  reduce  or  eliminate  the  generation   of   hazardous  waste  as



expeditiously as  possible."   Subtitle C describes  the regulation,



generation, transport,  treatment,  storage and disposal of hazardous



waste. The relationship between the states and indian tribes, and the



U.S. EPA,  in  implementing  RCRA subtitle  C,  serves as the foundation





                                 12

-------
for understanding the other two programs.
     RCRA mandates that EPA authorize  states, to  run the permitting
programs. The process focuses  on  EPA Headguarters level approval of
state regulations. (See Diagram 1.) The EPA headquarters  and  regional
offices review a particular state's plan and compare  for line by line
congruence  with the  federal  regulations.  EPA  Headquarters reviews
approvals done at the regional level. A denied application means that
the state must again revise regulations. Authorized governments become
responsible for all  RCRA permitting within the state's boundaries.
Tribes  receive the  same treatment.  After  a  state  or  tribe gains
approval,   the  federal  officials'  job  becomes  one of  occasional
overseer or "auditor". In the event that  a state is not  enforcing  its
approved  laws  sufficiently  the  EPA can  step  in to do  independent
enforcement,  or in extreme cases to revoke authorization. This has not
yet  occurred in practice.
      As of  1991,  47 states have been authorized. For  the states which
have not been authorized there appears  to be little incentive to hurry
up.  Richard Vaille of EPA's Western Region State Programs Branch,  says
the   RCRA  program provides  neither  a carrot  nor  a  stick.  Vaille
estimates  that EPA  funds  approximately  65  of  700  of  California
hazardous   waste  management  positions.   Due  to  the   relative
 insignificance of the federal funding a  "threat is not  so important"
 according to Vaille.19
      Due to  the  emphasis on  line-for-line equivalence with federal
 regulations, state RCRA laws are  constantly in  need  of revision.  This
 continuous process leads to frequent repetition of the cycle, for some
                                  13

-------

-------
                       RCRA DELEGATION MODEL
INPUT
 PROCESS
                           OUTPUT
Application
Preparation
Resources
(State)

EPA funds

State
Application

Revised
State
Regulations
                 RCRA
                 Legislation
                EPA HQ Policy
                on Delegation and
—&*
Calls for
Delegation
Application
to the EPA
Regional
Offices
» ^ 	
^
— *•

                                                Decentralization
EPA Regional
Office Reviews
1. Comparison
line-by-line to
Federal Reg.s
2. Checks state
capabilities;
i.e.staffing levels
EPA
Headquarters
Review
Authorized
     I
                              Denied Authorization
                               Pressure to:
                               -Seek Approval
State
Authorized
to Do All
Decisions
(For One Year)
                               -(or Deny Authority)
                               a. Interest Groups
                               b. Politicians
                                                                                Diagram 1

-------

-------
aspects of a state's plan. This may have discouraged qualified states
from applying for authorization.

     The UST program was established under RCRA, Section III, subtitle
I. "The  objective  is to prevent leakage from tanks  and  to clean up
past releases."  The UST model of delegation varies from subtitle C in
four crucial  ways:  UST allows  flexibility for state implementation,
regional authorization decisions, varying definitions of authorization
and a formal funding mechanism for  applications. Most importantly the
UST  model  does  not  focus  on equivalence with  federal standards.
Instead,  a decision to authorize is based largely on whether or not
the  state's   program  is   "no   less  stringent"   than   the  federal
regulations in the  technical and financial  responsibilites areas. In
the  language of  systems analysis this is  "equifinality".  Schoderbek
et.  al  describe  the concept of "equally  valid ways to reach  the  same
objectives".20 This  system  allows  for state  level policy design as
opposed to simple  program  management and oversight. Empowering the
states  in this way deserves accolades. However, at  the  same time  it
brings   challenges:   environmental   lawyers   used  to   RCRA   style
 line-by-line interpretations find the new approach difficult according
 to Jerry Parker  of the Office of Underground  Storage Tanks.21
      A  second innovation  with  UST  concerns  the  level  at which  a
 decision  to  authorize takes  place.  The EPA regional office has the
 most important role here. State applications go to  the regional office
 for  review.  If  the  region  approves,  then  the  state  receives
 authorization. Only  if the region plans to deny  an application does
                                  14

-------

-------
headquarters become involved. In such cases regional officials consult
headquarters. However,  the region still makes the final decision. (See
diagram 2.)
     A third  important difference  with the UST program  lies in the
outputs of the state authorization system.  A RCRA authorization is a
clear mandate for  a state to  control permitting  and citing of waste
management  facilities.  In contrast, state  authorization  in the UST
program has a different meaning depending on the EPA Region which did
the authorization. Jerry Parker, responsible for the state delegation
program of EPA's UST program, describes two paradigms that the regions
use  to  guide their decisions  within  the framework  of  "No Less
Stringent."  The  first paradigm  is  remnant of  RCRA decisions:  a
regional decision maker would ask 'Are we confident the state is ready
in  all  ways to  implement  and enforce the regulations  they have
passed?'
     Regional officials using the second approach require that  states
meet minimal levels of compliance.  They  grant authorization with the
intent  of  helping the  state develop the  specific  capabilities  needed
to  improve  their  program during  the  implementation  phase. This
flexibility suggests that EPA wants every state to gain authorization.
Parker  says, however,  that headquarters does not pressure the regions
to  delegate quickly.22 As evidence he describes that in the first one
and a half years of the program no states were authorized.
      Part of this may stem from  the  complexity involved  in  making
application. Some states  may have  as few as five or six staff members
working  directly  with  UST   issues.   These  staff   resources  are
                                  15

-------

-------
                        UST DELEGATION MODEL
  INPUT
Application
Preparation
Resources
(State)

EPA Funds

State Application

Incentive to
Apply (Proposed)
Revised
State Regulations
                               PROCESS
                       EPA HQ Policy
                       on Delegation and
                            RCRA
                            Legislation
                       Decentralization
                            Calls for
                            Delegation
 EPA Region reviews for
 "No Less Stringent"
 Using HQ Guidelines
 Regions use
 9 narariinmfi*
              Region
              Approves
Region Plans
To Deny
Authorization
\
     Region Consults HQ
             T~
       Region Denies
       Authorization
                       Pressure to seek
                       approval (or deny authority)
                              Lust
                              Trust
                       a. Interest groups
                       b. Politicians
                              Fund
                                                   OUTPUT
                                         (Dependent on
                                         Regional Paradigm)
1. State Authorized
to do UST Permitting

OR

2. State Ready to
Develop Capability
with EPA Tutorship
                                                                                    Revoke
                                                                                    Authority
   * 2 Paradigms: 1. Confidence the state is ready
               2.Plan to work with authorized state.
                                                           Diagram 2

-------

-------
represented as inputs in Diagram 2. These states can not have a month
of  full-time  staff  time  to  devote  to  filling  out  a  quality
application.  The  staff  resources  problem may exist  even  in fully
qualified states.  For this reason the  UST program formalized  a de
facto component of the RCRA system; helping fund application writing;
the fourth innovation of the UST delegation program.

     CERCLA is the biggest single program EPA coordinates. The CERCLA
Trust Fund makes RCRA subtitle C budgets look small and the LUST Trust
Fund look minuscule.
     The Superfund process  includes identifying sites,  searching for
responsible parties,  ranking  them  for severity,  selecting a remedy,
deciding  on  a  governmental unit  to  coordinate   a  particular site,
clean-up and  maintenance. Which of these steps  is  done by which level
of government depends on the particular site. The federal government
generally "leads" efforts however.  The Superfund system  involves  much
more federal  control than either of the previously  discussed  programs.
The final  section addresses the reasons for this which appear to be
primarily political.
      The degree  to  which delegation  does  occur within  the  Superfund
program occurs  on a  site by site basis. This contrasts  the  other two
programs;  states  and tribes authorized  for UST and  RCRA program  work
have  control over  the whole  state.  The  current system  of  state
involvement in  Superfund can be described as a  site specific model of
delegation.  Technically states do not have to become authorized to do
work  under  Superfund.  Instead  they can  voluntarily  enter into  a
                                  16

-------

-------
Cooperative  Agreement,  or  a  Superfund  State  Contract.  Another
mechanism, the Superfund Memorandum of Agreement, is non-site-specific
and describes EPA's working  arrangement  with a  state.  Cooperative
Agreements  and   Superfund   State   Contracts   are  legally  binding
documents. In addition,  Core Program Cooperative Agreements provide
general  funding  to states including;  legal  assistance,  interagency
coordination, financial and contract management and clerical support,
and general program management and supervision.23
     In  the  site specific  system  the regional  office  analyzes a
particular site  to determine whether it should be controlled by  the
federal  government or by the  states. The  Superfund Comprehensive
Accomplishments   Plan   (SCAP)  process involves  EPA  regional   and
headquarters  officials working together to document the  lead role.
States  do have  the  opportunity  to request access  to this process.
State concerns are sometimes  considered and incorporated.  For example,
on the  Stringfellow site in  California the state  was one  of numerous
responsible   parties.   For   these   reasons   the  state   wanted   to
"administer"  and requested  the  lead.  When citizens' groups  lobbied
EPA to  retake the lead,  California  lobbied hard  including efforts by
Governor Deukmejian to maintain  the lead  status.
      In a state  lead situation state officials become responsible for
organizing the  cleanup  efforts,  contracting,  procurement and  legal
challenges that  arise.  They  can  continue   to  work  with  federal
officials who may be  best equipped to handle  various aspects of the
work  at  the  particular  site.  The  most  common  example  of  this is
technical assistance  from  experienced  EPA   scientists.  Diagram  3
                                  17

-------

-------
     SUPERFUND SITE SPECIFIC MODELOF DELEGATION
 INPUT
               PROCESS
                                       OUTPUT
State Expresses
Interest in
Lead at the Site
1,200
NPL
Sites
                    A/
-------

-------
represents  this   system  graphically.   Responsible  parties   and
state/tribe officials  do  have some two-way input  into  the process.
Community environmental groups and congress have no direct input into
the system by which EPA officials  make a decision on which government
agencies will  lead.  They  may attempt to  influence decisions through
their roles as outsiders.
     in  Diagram  3  dotted lines  around  the  "CERCLA Requires"  box
indicate  that  the  EPA  has  some  control   over  the  law.  Though
Congressional  legislation normally  would be considered  beyond the
control  of officials  responsible for implementation,  in this case
EPA's  ability to  interpret  the  legislation  and  draft  federal code
brings  power  to the Agency.  Jim  McElfish,  of the Environmental Law
institute,  says  a conflict over CERCLA's  mandate regarding state and
federal  negotiation took place during the reauthorization  period  in
1986. At that  time consensus within the Agency was against delegation
due to  interpretations concerning illegality. At  least  one member  of
the Office of  General  Counsel disagreed with his colleagues however.24
The debate suggests  that  EPA  needs  new   statutory  authority  to
 significantly augment the level of delegation.

 ADVANTAGES AND CHALLENGES OF DELEGATION FOR 8UPERFUND CLIENTS;
      This section describes ramifications of an increased delegation
 for various clients involved in  the Superfund program.  These include
 the  Environmental  Protection  Agency,   state-level  environmental
 management  programs,  parties  responsible  for  various  National
 Priorities List  sites,  environmental  activists groups and, finally,
                                   18

-------

-------
citizens.  Overall,  a  delegation  system,  such  as  the  one  to  be
described  below,  will  heighten efficiency  by  replacing a  detail
oriented  federal management  with  an  audit  system.  In  designing
governmental policy, efficiency can never  be considered in a vacuum
however.  Political  reality  must  be  taken  into  account  through
consideration of those who would be affected.
 EPA
      From the  EPA perspective, a  system which  empowers qualified
 states represents an opportunity to increase efficiency and quality in
 the management  of Superfund.  Keeping administration  and  decision
 making geographically close  to the problem at hand saves  time  and
 other resources. A delegate and audit model  would allow EPA staff to
 spend more of their time on  ensuring  consistent,  quality and timely
 cleanup  and  less  time doing  contracting  and  other paperwork.  This
 allows EPA's staff to use their strong technical skills where they are
 most needed.   This will be described in greater  depth in  following
 sections. At the same time, such a change represents uncertainty which
 calls for detailed planning, including planning for surprises.
      EPA  is  faced   with  a  problem  so  vast  that  micro-level
 administration  is  impossible even  if it  were  desirable. The current
 Administration's  support  of decentralization  heightens the need  for
 delegation.  Superfund policy analysts should consider the decisions of
 their colleague at RCRA and UST as  well as decisions in other federal
 agencies  which have delegated  numerous  programs.  Some states  have
 field officers  already engaged in this type of work. For example,  the
                                   19

-------
California Division of Toxics has permanent staff constantly on hand
at four  regional  offices.  Peter  Orth,  of  the San Francisco Regional
Office of Contracting Oversight, says  that in his region 80 percent
of  the  sites  have groundwater 'components  so  it  "makes  sense"  to
maximize the role of state Regional Water Quality Control Boards who
have expertise in the area. "There's already a state structure" Orth
says.25
     Each of the three programs discussed here entail more work than
the federal government can  effectively manage. In the cases  of UST and
RCRA, EPA decided to delegate work to states to manage.  In the case of
CERCLA,  EPA  has to a greater degree, delegated work it  could not
accomplish to contractors and  responsible parties. The present system
causes loss of time and money because EPA Regional staff can be called
in from 500 miles or two states away. The AVTEX site in West Virginia
stands as a clear example.  On-Scene Coordinators travel approximately
4 hours  from the Regional EPA  Office  in  Philadelphia for  two week
shifts at the site. In addition to Agency incurred costs of per-diem
and travel, the staff  is inconvenienced. One EPA On-Scene Coordinator
at  the  AVTEX  site felt the  Agency  "should  have  a staff  member
permanently stationed here." That would be  impractical for the EPA,
but not necessarily for a state agency.
     EPA  staff interviewed  presented a  broad  range of  attitudes
towards   increasing  the  power   of  states   vis-a-vis   Superfund
responsibilities.  Viewpoints  reflected  the  particular  official's
position  in  the  administrative  hierarchy as well  as whether  they
worked at headquarters or the regional offices.

                                 20

-------
     A Management Review of the Superfund Program, the "90 Day Study",
recommends that the Agency:
     "Resolve the fundamental policy question  of what  States'  long-
     term role in the Superfund program will be,  develop short-  and
     long-term strategies to enhance State program capability.
Viewed in this light, delegation is the most powerful way to enhance
State program capability. The 90-Day Study also  calls  for increased
community involvement and quicker access to information by community
groups. 27 States appear to be especially capable in this area.
Fred Leif, Regional Enforcement Officer at  Region 9 in San Francisco,
feels that states are "more in tune with communities."
     EPA  simply  cannot administrate cleanup of  an estimated 38,000
sites that are expected to meet current standards for listing on the
National Priorities List. As the agency has recognized,  the number of
potential sites  is  so high that the scoring and ranking of potential
sites  was  delegated to states for assistance.  Other  specific tasks
such  as community  relations  appeared  to be delegable. The list of
specific  components of  Superfund  that  should be  left to states grows
until  the  analyst recognizes  that some states  are  prepared to manage
every  part  of the program.
      Utilizing EPA officials as auditors for  the  authorized "State-
wide  lead" programs would free up staff resources for  work  on  other
projects  including redoubled efforts  to enhance the capabilities  of
unauthorized states. Highly qualified  EPA technical staff could spend
more  of their time on technical questions  and  less on  administrating
 contracts and waiting  for  town meetings to begin. Delegation  means
 cutting out redundant reviews of state-lead sites. One state official,
                                  21

-------
complaining  of the lack of  decentralized  decision-making says that



"$100 decisions were  sent all the way back to Washington."28



     Potential liabilities for EPA also exist. The Agency would risk



negative publicity. The media, and possibly members of Congress, could



claim the  agency  is avoiding its responsibility. Additionally, some



staff may  react negatively to what they could consider the increased



bureaucratization   of   their  roles.  Specifically    some  On-Scene



Coordinators  would disdain  a  shift from  full-time  inspector  and



overseer to occasional  "watchdog" or "auditor".







STATES AND TRIBES



     State officials have much to gain. According to Karen Ueno, some



states "have  ambitious  programs  but  no funding to implement them."29



Delegation would provide states the chance to engage in classic empire



building;  funding would promote consolidation of technical expertise



and political  power. Staffing up to meet their new responsibilities.



States   would  use  funding  from   federal  grants,   cooperative



agreements.



     Beyond staffing  and funding gains,  qualified states  would not



have to deal with "second guessing" which is common with the present



system.   Stan  Phillippe,  of  California's  Environmental  Protection



Agency'-s Site  Mitigation Branch, describes  a situation where states



negotiate  with responsible  polluters under  the shadow  of  constant



doubt that their agreements will be overturned by federal officials.



Presently the  federal EPA officials will  frequently overturn a state



decision. The result is  that state officials have  wasted their effort.
                                 22

-------
A true delegation would mean virtual autonomy for qualified states.
     Organizations  representing  states have  generally  supported  a
delegation/The  National Governor's  Association analysis  has  been
that, put simply, there are two types  of states; haves and have nots.
According  to Chris  O'Donnell,  formerly with  the NGA,  the federal
government  should  give authority to  qualified  states  while helping
others to  qualify.30 ASTSWMO has been working  for an expanded state
role  for  "quite some  time"  according to Phillippe.  He  says  the
Association proposed  a  compromise whereby  qualified  states would
administer  all   enforcement lead sites. This would leave the federal
government  to administer sites financed by the CERCLA Trust Fund.
     The question of empowering tribal governments brings up many  of
the same concerns relevant to those of state governments. Significant
differences include the smaller and less technically competent staffs,
lower  budgets,  and  minimal enforcement capabilities of the tribes.
This    situation    suggests   that    giving   tribal   governments
responsibilities they  are  not  prepared to  handle  would  be disastrous
in  terms of environmental  protection.  Poorly managed  and  leniently
enforced    state  hazardous waste  cleanup  projects  would  attract
irresponsible  "fly-by-night" contractors,  according  to  Bradley Angel
of  Greenpeace.31

CONGRESS
     The high price tag of the Superfund program coupled with  the
concerns of voters has led to close scrutiny from members of  Congress.
Members  of Congress  could  fear that  delegation would leave  them
                                  23

-------
vulnerable criticisms  that the federal government was  shirking its

responsibilities.  Critics could  claim that  the effective  federal

monitoring of  delegated responsibilities would  be  impractical. The

political implications of this are that Congress would only support a

delegation with  strictly  defined  oversight  and  revocation power for

the EPA. A 1989 report from the General Accounting Office represents

the view of the legislative branch:

     Any  deferral  policy that  is  implemented  should  set
     minimum state eligibility stazndards, require conformance
     with the  NCP,  and give EPA the right  to monitor state
     performance to ensure that cleanups are  protective and
     meet federal standards.32



INDUSTRY

     The chemical  industry,  oil  industry  and other  private sector

groups that make up the majority of responsible parties will gain from

a delegation  which gave  true authority to states.   If  responsible

parties could  be confident that an agreement with a  state could not

later be overturned by federal officials they would be more likely to

negotiate  in  good faith  with state  officials. Like  the  states,

industry gains from having one agreement stand,  as  opposed to being

subject to continued court or administrative review.

     The increased power of an authorized state would bring stability

to the process and reduce the  incidence of legal battles. Beyond this

however, responsible parties may gain or lose depending on which state

a site is located in.  Karen Ueno,  also of EPA,  points to cases where

responsible  parties  did  "not  appreciate  the  state's  technical

competence" and   specifically requested federal lead on  the site.


                                 24

-------
State officials says the federal government works more slowly due to
bureaucratic structures and EPA says the same of the states,  because
of  their  "academic"  rather  than  practical  orientation  towards
details.33

ENVIRONMENTAL COMMUNITY
     The environmental community—often critical of Superfund work--
will  not blindly embrace  a delegation. Depending  on the  state in
question, delegation may be perceived as beneficial or disastrous for
the environment. The crucial factor is  "political will" of the state
in question according to Pickard. He also notes  differences within an
individual  state where  the  level of  skill or experience  of  the
particular official involved can vary from  site-to-site. By involving
environmental  groups in the  process of authorizing states, policy
makers  can ensure a more  balanced decision and minimize unexpected
criticisms  later.

INTRODUCING A  STATE-WIDE LEAD  MODEL FOR SUPERFUND;
      With this foundation, the paper now turns to  a proposal for  a
system  of  increasing  state involvement in Superfund by  delegating
responsibilities and authority to that  level of government. The paper
describes a  system of  state-wide  lead;  where  a  qualified  states
coordinate all activities  within their boundaries.
                                  25

-------
STATE-WIDE LEAD




     For  a  state to gain authorization to  coordinate,  or "take the



lead" on all sites within its borders that state should be  prepared to



manage the program  at  least as well as the federal government would.



The program should  center on a "no less stringent" policy. Decisions



regarding a particular state should left to the Regional  office with



formal  input  of   state  officials,  and  public  interest  groups.



Incentives should be provided states who take on the responsibility of



statewide lead agency.  Finally, revocation of this authority should be



used as a final resort.



     Decisions on delegation should be decentralized. Regional offices



are most in touch with what it takes to do Superfund work within the



states  in their region.  EPA  Regional offices  should serve  as the



central body coordinating the decision to authorize a state.  The UST



program requirement of consulting federal authorities when denying a



state authorization appears unnecessary. An improved Superfund program



should  not  emulate  this aspect  of UST.  (See diagrams  2 and 4.)



Instead, formal consultation with state officials and citizens' groups



should  be incorporated  into  the  process.  Comparing  diagram  4  to



diagrams  1  and 2  illustrate  that the  state-lead model  brings the



citizens  groups into  the system  rather that  having  them   in the



unpredictable  area  outside;  the  "environment"  in  the language  of



systems theory.



     This process should  solicit input from state officials as well as



citizens groups. Advocacy groups should have time to  comment  on the



proposed  change  in government  authority.  The  model  in  diagram  4,





                                 26

-------
illustrates  that concerned  parties  outside of  the  Environmental
Protection Agency need to be brought directly in to the main stream of
decision making. This  contrasts with  the  sideline role in the three
other models described.
     This  system facilitates  solicitation of outside  opinions when
they  are  most   needed.  Michael Pickard  describes  the  example  of
Oklahoma where  "the  state  is  compromised  by the  oil industry, [but]
EPA has  tough folks in that  region. »3A In such a case the advocacy
groups would be expected to  argue  for the continuation of a  federal
lead  role  in the state.  Similarly on various sites in  California,
notably the  Stringfellow site, citizens action groups have called for
the federal  government to  take  control away  from the state.
      While specific cases may  represent  a  conflict of  interest in
which the  state may engage in questionable management, specifically
accepting  a  relatively lenient remedy, this would be a rare exception.
This  argument must be balanced against the equally tempting incentives
for   the   federal  government  in  cases  where  it  is   considered  a
responsible  party.  Military  bases  represent the clearest  example.
      A more  likely  effect of clear  boundaries  of  state control  in
state lead sites would be that responsible  parties  would attempt  to
play  off the states against the federal government in order to receive
the least  expensive alternative possible.  The second UST paradigm does
not  seem viable for Superfund. For political reasons   EPA will  most
 likely have  to  help states enhance their capabilities before granting
 authorization.  Enhancement efforts should be further extended.
                                  27

-------

-------
           SUPERFUND "STATE-WIDE LEAD" MODEL
               WITH REGIONAL DECISION MAKING
INPUT
                    PROCESS
                                                              OUTPUT
 EPA Funds

 Application
 Preparation
 Resources
 (State)

 Incentives to
 Apply

 Revised
 State
 Regulations
-4
                       A/ftARA Halls
                                             CERCLA
        For State/Tribe Involvement
                           Trust Fund
Region Reviews
Application Makes
Preliminary
Recommendation
Based on
"No Less Stringent"
Comments From:
State/Tribe,
General
Community,
Regulated
Community
Region
Makes Final
Decision
State /Tribe
Authorized
To Take Lead
Role On All Sites
Within
Boundaries

OR

 Federal
 Lead Norm,
 State Leads
 Specific
 Sites
 (See Diag. 3)
                    Congressional
                    Pressure For
                    Federal Oversight
                                                                     Diagram 4

-------

-------
COMPARISON CHART OP POUR ALTERNATIVE DELEGATION SYSTEMS
^^^SSSSS^SSSS^^^S^^SSSSS^SSS^^^^SS^^Sl
Fed. Funds for
Application:
Level of
Decision-making
Incentives to
Seek Authority
Decision
Criteria
_____ — — — — ,— =^=
======
RCRA
Indirect
Region &
HQ
None
Line-For-
Line
UST
Yes
Region: HQ
Review of
Denial
Minimal
No Less
Stringent
SUPERFUND
PRESENT
No
Region &
Consult HQ
None
Situation
of Site
SUPERFUND
PROPOSED
Yes
Region
Only
Yes
No Less
Stringent
IMPLEMENTATION GUIDELINES FOR A STATE-WIDE LEAD MODEL:

     This section addresses administrative guidelines for facilitating
an effective transition to increased delegation.  First addressing the
scope a delegation should cover, the section continues with discussion
of  the respective roles EPA headquarters  and the regional offices.
Possible  incentives  or "carrots"  are discussed.  Finally the section
discusses  the viability  of various  "sticks" such  as  penalties or
revocation  of  authority.
     Certain  categories of sites may prove inappropriate for  state
management.  An  example  is a  site  that  crosses  state  or tribal
boundaries. In this case the federal government may be most qualified.
Analysts may say that sites in which the federal government is a  party
should remain  under  the  administrative  control  of   the   federal
government,  i.e.,  military sites. This appears  unnecessary as  state
administrators should be expected to be more objective in such a  case.
                                  28

-------

-------
State  management  of  sites  in  which  the state  government  is  a
responsible party  must  also  be examined;  special treatment  of this
situation is not likely necessary.
     The need for consistency within Superfund has been called for by
virtually every category of critic; industry, states,  the  90 Day Study
and  environmentalists all complain of  lack  of consistency.  Linda
Greer, a toxicologist  with the National Resource  Defense Council, asks
"Why do leaks of benzene in Texas get cleaned up to a certain level,
and to another level in  New Jersey?"35 Delegation and decentralization
can go hand in hand with consistency if implementing organizations are
provided clear guidelines. Management theorists  such as John Q. Wilson
and  Deming  agree that clearly  defined tasks are a key to successful
administration.36 "Too much time and effort is wasted because cleanup
objectives  are not stated clearly" says Cyndy Bryck,  manager for solid
waste   programs   at   the   Chemical   Manufacturer's  Association.37
Consistency of  outcome should   be  a  goal of the  program.  Equal
standards  should  be  met throughout, the country regardless  of the
implementation  body.  Accomplishing  this does  not  require  a  single
method of  implementation.
      in the October 1990 report on Superfund published by Clean Sites
and  other  environmental organizations  recommends  that  EPA  "develop
standard procedures  for using risk assessment  at different  sites".
and  long-term development of  national standards  for contaminants found
at hazardous waste sites.38 Authors  of the 90 Day Study recognized the
need  for  consistency the study  calls  for the agency  to  "develop
prototype RI/FS and  remedy  selection models for recurring types  of
                                  29

-------
sites already identified (municipal landfills, battery-cracking sites,
and  wood-treatment facilities)11.  This would allow states to  quickly
take over management  of sites  and maintain  and improve  upon the
quality of the administration. Significantly, this prototype would be
developed in the area that EPA administrators have been most  reluctant
to  delegate.  This  concept  should be  expanded to go beyond  remedy
selection. If the prototypes or effective  guidelines are created, the
agency  could  undertake a  delegation with  confidence.   To promote
participation  in  such  a program,  the Agency must  provide   states
incentives to take  part.

ENCOURAGING STATES  TO SEEK AUTHORIZATION:  CARROTS AND STICKS:
     To encourage qualified states to take on the responsibilities of
facilitating Superfund work within their boundaries incentives  need to
be designed into the system.  One possibility  is financial incentives.
An expanded system of  delegation  inherently provides  some  financial
reward. Specifically,  Regional and Headquarters EPA positions, such
as On-Scene Coordinators would move to state  offices taking  on new
responsibilities. Opportunities to staff-up  are always tempting. When
the  funding  is  available  to  support it   the  temptation becomes
virtually irresistible.  (This may explain why California—with a large
and technically competent staff—avoided seeking RCRA authorization.
Vaille says  that when  California  found out  they were going  to be
authorized they withdrew their application.  "We're paying them to do
redundant work", Vaille says that EPA pays  for any administrative work
required of the state because they  have not yet been authorized. As a

                                 30

-------
result they may as well keep the staff and the federal money coming.)
     Incentives need not be monetary however. A less direct incentive
could earmark a percentage of CERCLA funds for qualified sites (28.5
HRS score) within authorized state-lead states.  This would assure that
part  of  the fund  would be more  quickly  accessible to  states.  The
chance to shorten the time necessary to  negotiate the bureaucratic
maze will be attractive.  The UST program is currently evaluating using
a system  such as this.
     Assistance  to  states  that,  in  Agency lingo,  "enhances their
capabilities", creates another form of  incentive  which empowers the
states. EPA can allow state  Superfund staff to take part in  federal
trainings.  Additionally, states should have free access to the Record
of  Decision Database, the Toxic  Release  Inventory,  CERCLIS  and the
many  other  databases  and  management information  systems  which EPA
staff  utilize.
      Vaille points out incentives inherent in a delegation because  of
the empowerment of states. Delegation "would raise the stakes on when
we  would  get involved: very rarely would we overfile,"  he says.39 What
Vaille has described theoretically Parker sees already happening with
UST;  "the main thrust  is  towards state enforcement,  but EPA retains
authority to enforce the state regulations."40
      A final aspect of an improved superfund system that needs to  be
addressed  is  the use  of revocation  of  authority.  The  size  and
 financial  strength  of the Superfund program allows for a  different
model than RCRA  and UST.  In those programs EPA technically  has  the
 ability to  revoke authorization, but EPA could  not  run the programs
                                  31

-------
due  to  inadequate  resources.  This  would  not  be  the  case  with

Superfund. If  a  revocation  became  necessary regional staff that had

been working on  sites  in  other  states  could serve as a transitional

lead team.

     Addressing the issue  of revocation requires considering more that

feasibility. Kerry Kelly,  of OERR in Washington  D.C.,  recommends a

positive, TQM  approach; ensure the states are capable then encourage

them to be responsible. Fred Leif learned from his experiences in the

EPA delegation of  construction grants to states that:

     "We needed to give them the flexibility to make mistakes,
     you  can't  be  micromanaging,  you  need  to  give  them
     responsibility  and authority to implement."41


     In  the  UST  program, revocation  is  "not  a credible  option",

according to Parker. However,  using federal staff  to enforce state

regulations is practical  he  says.42 The  RCRA program has developed a

face-saving compromise. If EPA auditing uncovers that a state is not

meeting the approved standards  EPA informs the state they have a 30

day probation  period before the federal  government  steps  in.  This

encourages the states to act fast and effectively. The threat becomes

an incentive. Such a system could be used with Superfund.

     The  crucial  point  here  is   that  EPA  should  not  attempt  to

micromanage particular decisions at a particular  site.  Instead,  the

shift should be to an "audit system". This  would emphasize a "no less

stringent".  In such a system, EPA  officials would review trends in a

particular  state's   decision-making.   Alternatively   a   two  year

probationary period  could be designed.
                                 32

-------
ANTICIPATING CHALLENGES IN IMPLEMENTING A STATE-WIDE LEAD MODEL:
     Lessons from the RCRA and UST experiences as well as analysis of
the  present  Superfund system  lead to specific  recommendations for
design  of a  delegation  policy.  This section  addresses  four such
recommendations.  The  central  concern  lies  in  ensuring  that only
qualified  governments receive authority. Responsible  follow-up can
only be accomplished with  mechanisms for demonstrating that  authorized
entities perform adequately. Finally, the policy maker must maintain
the capacity to handle disputes and revoke authorization if  necessary.

      In designing a  delegation  system,  the EPA must  prepare for  a
situation   where  the   authorized  state  claims   it  is   meeting
responsibilities  while  the Agency  disagrees.    The  first  step  in
avoiding this  lies in basing authorization  on a state  adopted policy
of "No Less  Stringent" than federal  standards.  This could  be  a legal
requirement  for delegation which must be incorporated into state law.
EPA attorneys  familiar with equivalency based delegations,  i.e. RCRA,
will find this difficult to adjust to.
      Additionally  Karen  Ueno   recommends  a   "dispute  resolution
procedure" be created.   She  expects responsible  parties would  sue
 states who would  in  turn  sue the  federal government and vice-versa. A
 dispute  resolution   system  could use  independent  arbitration,  for
 example, to avoid dependence  on  litigation. This  is crucial  because
 the role of the courts is already quite significant.  "Corporations are
 spending  70   percent  of direct  cleanup  costs  on  lawyers  and
 consultants,  mostly lawyers,"  according  to Eugene A. Andersen,  a
                                  33

-------
 partner in the law firm Anderson,  Kill,  Click,  and  Oshin.43
      A system of oversight is necessary for the -responsible allocation
 of public  funds in the CERCLA Trust Fund. To ensure  this regional EPA
 officials  should  intermittently  audit states managing  Superfund  work
 in state-wide  lead states. Audits  should emphasize  detailed  study of
 trends  in  a   state's  practices.  Audits  should  not   result  in
 reconsideration of a  state decision on a particular site.
      In other  programs the  EPA's  ability to  punish states has  been
 quite limited. For example  EPA has never taken over  a state  RCRA
 program. The closest  the Agency came to a RCRA revocation was  with
 North Carolina. According to McElfish "ironically North  Carolina was
 not dinged for being  ineffective"  but rather for being  "inconsistent
 with RCRA". Richard Vaille describes the situation in California where
 EPA funded positions  make up only approximately  10%  of the state's
 related jobs. As a result,  the State  is immune to severe  threats  such
 as cutting off federal  funding. Jeffrey Zelikson,  Waste Management
 Division Director  at EPA Region 9,  maintains that EPA has had success
 in taking  back state's  lead  role on  particular  sites.  The Superfund
 situation will be quite different on  fund financed sites, but will be
 similar to  the situation Vaille described for enforcement sites.
      In cases  where  EPA finds  a  record of  state  failure  to   meet
 federal  standards  a probationary period  should be  enforced. Vaille
 says that the best way to do oversight is to tell a state "we're  not
 satisfied with their action,  quality or quantity",  and then  say "we'll
 act if you  don't  within 30  days."4* Leif  agrees  that  the  "states
motivation  to  do a good job  is to keep  the Fed's out."45 One way to

                                 34

-------
ensure states have such motivation  is  to  use  an additional criteria
for  authorization   recommended  by   representatives   of  ASTSWMO;
delegation  should  only  go  to  "desirous"  states.  "Desire"  will
presumably be demonstrated by an application from the state.
     Another  significant  concern  raised  by   at   least  three  EPA
officials lies in the legal status of delegation  responsibilities. One
question  lies in  the mechanism  by which  a  state  can appropriate
federal  funds.  For  example,  though the  Cooperative Agreements are
legally  binding  documents,  Ueno feels that a new  type of agreement
would have to be  developed. A redesigned  Core grant  could prove both
legal  and practical as a funding mechanism for the delegation. The
Core  grant  program  now  supports  a broad use of  funds  including
training  state staff. Use of the Core Program has expanded greatly.  In
1987  only three states received  the grants but by  1989, 43  states,
Puerto  Rico  and  the  Navajo  Nation  had  become  involved  in the
 program.46
      O'Donnell says Superfund has "very different wording  than RCRA
 and UST;  CERCLA has no authority to  do  state delegation".47 The point
 is less than clear. According to Phillippe, ASTSWMO  "couldn't speak
 with one voice" on  the issue of whether or not all  of  Superfund is
 delegable.      In the  UST  program  EPA has been  able to  avoid this
 difficulty   in   states  administering  LUST   Trust  fund  monies.
 Technically, the states are authorized to run the federal program in
 lieu of EPA. What is clear is that the authority could be created if
 senior EPA staff support such a move.
      Zelikson says  "the key issue  is  liability  of the  fund if the
                                  35

-------
state doesn't  feel  accountable11.48 If EPA attorneys,  consulting with



the Justice  Department,  determine delegation of fund financed sites



would be impossible to enforce, then the delegation could follow the



model recommended by ASTSWMO; delegating enforcement sites only.







CONCLUSIONS:



      The  present  Superfund  system of  state  involvement  stresses



site-by-site decisions concerning which level of government will lead



cleanup efforts. A new delegation system should emulate the flexible



system  used  by  the  Environmental  Protection Agency's  Office  of



Underground Storage Tanks. The  EPA  should  do all  it  can to create a



system  which  empowers  qualified  states  or  tribes  to  take  on



responsibilities for the whole of their jurisdictions. In 1993, when



Congress  will  again  reauthorize  Superfund,  the  Agency should  be



prepared to fight hard for these changes.



     Delegation can not be used as an isolated tool, but rather as one



part of an effort to improve efficiency and quality in the management



of Superfund. The endeavor must  be coupled  with heightened efforts to



provided consistent standards throughout the country.



     A  delegation  would  be   consistent   with  the  current  Bush



Administration  and  EPA  views  of  decentralization  and  federalism.



Giving-desirous states and tribes increased  responsibilities, with the



resource capabilities to  meet those  responsibilities, will facilitate



more  effective  and  efficient  management  of  the  nation's  worst



hazardous waste sites. Such a policy will  undoubtedly cause concern



among  many  parties involved  in  the   Superfund  process.  However,





                                 36

-------
expected opposition notwithstanding, other groups,  and society as a



whole, will benefit from a delegation.
                                  37

-------
ENDNOTES
1.  Stafford  Beer,  Management  Science:  The  Business  Use  of
Operations Research. Aldus Books Ltd., London, 1967.

2. Peter Schoderbek, Charles G.S.Schoderbek, and Asterios Kefalas,
Management Systems-Conceptual Considerations.  4th Ed., BPI/Irwin,
Homewood, IL., 1990. p. 40.

3. An Analysis of  State Superfund  Programs:  50-State Study. 1990
Update. Hazardous Site Control Division, U.S. EPA, September, 1990,
EPA/540/8-91/002.
   Enhancing State Superfund Capabilities; A Nine-State Study,  by
the Environmental Law Institute for the Office of Policy, Planning
and Evaluation, U.S. EPA, December, 1990.

4. Stephen Farber,  "Federalism and State-Local Relations" in
A  Decade of  Devolution:  Perspectives on State-Local  Relations.
Edited by E. Elaine Liner, The Urban Institute Press, Washington,
D.C., 1989, p. 33.

5."State and Local  Involvement in the Superfund Program", Office of
Emergency and Remedial Response  Hazardous Site  Control Division,
Environmental  Protection Agency,  Publication No.  9375.5-01/FS,
Fall, 1989, p.l.

6. Stan Phillippe, Personal Interview, Sacramento,  CA., 8/15/91.

7. Status of State Involvement  in the Superfund Program. Office of
Emergency and Remedial  Response, Washington, D.C. 20460, EPA/540/8-
90/005, p. 20-21.

8. "State and Local Involvement in the Superfund Program", op.cit.,
p.4.

9. "EPA  to Put Cleanup  Burden  on  Industry",  Los  Angeles Times,
6/15/89, part 1,  p. 17.

10. Lawrence J. Goodrich,  "Long  Road to  Superfund  Cleanup;  After
nine uears  few sites  have  been cleaned up,  and  the tab  is  now
estimated at $30 billion,"  The Christian Science Monitor, v.  81,
p.7, col. 2, 10/3/89.

11. Michael Pickard, Phone Interview, Sacramento,  CA., 8/23/91.

12. A Management Review of the Superfund Program.  U.S. EPA,  1989.
    A Management Review  of  the  Superfund Program;  Implementation
Plan. U.S. EPA, 9/1989.
                                 38

-------
13. A  Management  Review of the  Superfund Program, op.  cit.,  p.
Vlll.
14. A Management Review of the Superfund Program, op. cit., p. 7.

15. Ibid., p.iii.

16  incorporating  Total  Quality Management into  OERR,  Office of
Emergency and Remedial Response, U.S. EPA, November 6,1990.

17. 50-State Study, op.cit., p. 12.

18. A Nine-State Study, op.cit., p. 112.

19.  Richard  Vaille,  Personal  Interview,  San   Francisco,  CA.,
8/20/91.

20. Schoderbek, op.cit., p. 40.

21.  Jerry Parker, Personal  Interview,  Arlington,  VA.,  July 30,
1991.

22. Parker, Ibid.

23.  "Questions  and  Answers:  State  Involvement  in Superfund",
Unpublished  EPA document.

24. Jim McElfish,  Personal  Interview, Washington,  D.C.,  7/29/91.

25. Peter Orth,  Personal  Interview,  San Francisco,  8/20/91.

26. A Management Review of  the Superfund Program,  op.cit., p. V.

27. A Management Review of the Superfund Program, op.cit.,  p.  vii.

28.  Stan Phillippe,  op.cit.

29.  Karen Ueno,  Personal  Interview,  San Francisco,  CA.,  8/21/91.

30. O'Donnell, Personal Interview, Washington, D.C., July 30,  1991.

31.  Bradley Angel, Personal Interview, San Francisco, CA. 8/21/91.

32   HAZARDOUS  WASTE  SITES:   State  Cleanup   Status	and	Its
implications  for   Federal   Policy.   Report  to   the   Chairman,
Subcommittee  on  Environment,  ENergy,  and  Natural  Resources,
Committee on Government Operations, House of Representatives,  U.S.
General Accounting Office,  GAO/RCED-89-164,  August, 1989,  p.63.

 33.  Steve Linder,  Personal Interview, San Francisco, CA. 8/21/91.
Ueno,  Karen,  op.cit.

                                  39

-------
34. Michael Pickard, op.cit.

35. Douglas Frantz,  "Critics Urge Changes in Superfund Operations",
Los Anaeles Times.  6/19/90, p. Al, A22.

36. Walton, Mary, The Deminq Management Method. Perigee Books, New
York, NY, 1986.
    Wilson, John Q., Bureaucracy; What Government Agencies Do And
Why They Do It. Basic Books, Inc., USA,  1989.

37. Ibid.

38. Ibid.

39. Vaile, op.cit.

40. Jerry Parker, Phone Interview, 12/19/91.

41. Fred Leif, Personal Interview, San Francisco, CA.  8/22/91.

42. Jerry Parker, Personal Interview, Washington, D.C.,
July, 1991.

43. "In  the  Clutches of the  Superfund  Mess.",  New York  Times -
National Edition, 6/16/91.  p.  Fl.

44. Vaille, op.cit.

45. Leif, op.cit.

46. Status of State Involvement in the Superfund Program FY 80 to
FY  89.   Office  of  Emergency  and  Remedial  Response,  U.S.  EPA,
EPA/540/8-90/005, April, 1990, p.26.

47. Chris O'Donnell, op.cit.

48.  Jeffrey   Zelikson,  Persoal  Interview,  San  Francisco,  CA.,
8/21/91.
                                 40

-------
                              Bibilioaraphv
Anderson, Jack and Van Atta,  Dale,  "Waste  Merchants  Target Reservations", The
Washington Post, 2/22/1991.
                                                                    , Office of
September 1990, EPA/540/8-91/002.
A  Management PAvt«w of  *"*- fi«r«rfund Program. U.S.  Environmental Protection
Agency, Washington, D.C., 1989.
Beer   Stafford,  Management  Science; The Business  Use of operations Research,
Aldus  books  LTd. , London, 1967.
rnh-.^-t «*.*» «np»rfund ^abilities: A Nine-State Study, by the Environmental
Law  institute   for  the  Office  of  Policy,   Planning  and   Evaluation,  U.S.
Environmental Protection Agency,  December,  1990.
"EPA to Put Cleanup Burden on  Industry",  T.os  Angeles Times, 6/15/89, Part  1,
p. 17.
FederalReoister, 40  Code  of Federal Regulations, Part  II,  National Oil  and
Kzardou.  Substances  Pollution  Contingency Plan; Final Rule.
Frantz,  Douglas, "Critics  Urge  Changes  in Superfund Operations", Los Anqeles
Times. 6/19/90,  p.  Al, A22.
Getlin,  Josh,  "Cleaning Up  or Messing Up?", Los Anqeles Times,  v.  107, Sec.  I,
P. 4,  col.  4, 6/21/88.
 response, U.S. EPA, Washington, D.C.
 «TmrVM rations of  State  Cleanups of Hazardous Waste Sites on  Federal Policy",
 Statement  of Richard  L   Sembra ,  Director  Environmental  Protection  Issues,
 Resources,  Community,  and Economic  Development Division,  General  Accounting
 Office, 11/7/89.
 "improving the NPL Process With TQM", unpublished document, Office of Emergency
 and Remedial Response, U.S. EPA.
 rnrornorating  Total Qua] itv  Management  Into  OERR.  Office  of  Emergency and
 Remdeial Response, U.S. EPA, November 6,  1990.
 "in  the Clutches  of the  Superfund Mess",  New York  Times-National Edition,
 6/16/91, p.  Fl.
 Liner,  E.  Blaine,  Editor,  ft n*cade of Devolution:  Persr^HvP« on State-Local
 Relations.  The  Urban Institute Press, Washington D.C., 1989.
 Murphy,  Kim,  "State  Held Liable for  Stringfellow Toxic Dump Site," Los Angeles
 Times,  June 3,  1989, sec  I p.l column 3.
 Schoderbek,  Peter,  Schoderbek,  Charles G.S. and  Kef alas ,  Ajt«r rios  Managjmjnt
 s%t«n« -  Conceptual Considerations. 4th  Ed., BPI/Irwin, Homewood, IL. ,  1990.
  "State  and Local  Involvement in the Superfund Program",  Office of Emergency and
  RemedLrResponse, Hazardous Site Control Division, U.S. Environmental Protection
  Agency,  Publication No.  9375.5-01/FS.  Fall,  1989.
                                        41

-------
Status of State Involvement in the Superfund Program FY 80 to FY 89. Office of
Emergency and Remedial Response, U.S. EPA, Washington, D.C., EPA/540/8-90/005.

SUPERFUND A More Vioourous and Better Managed Enforcement Program Is Needed.
United States General Accounting Office, Washington, D.C. 1989,
GAO/RCED-90-22.

Weisskopf,  "Superfund  Denounced As  'Largely  Ineffective';  Some  Cleanups Are
Failures, OTA Finds", The Washington Post. 6/18/88, pA3, col.  5.

"Questions and Answers: State Involvement in Superfund", Unpublished Document,
U.S. EPA.


RECOMMENDED FOR FURTHER STUDY:

State Program approval Handbook,  U.S. EPA, Office of Underground Storage Tanks,
to be published approximately January,  1992.
                                      42

-------
List of individuals Interviewed;

1. Bradley Angel, Greenpeace, San Francisco, CA.

2. Denise Grabner, Association of State and Tribal Waste Management
Officials, Washington D.C.

3. Kerry  Kelly, Superfund  Policy  and Analysis  Staff,  Office of
Emergency and Remedial Response, EPA, Washington, D.C.

4. Fred Leif, Regional  Enforcement  Officer,  Office of the Deputy
Regional Administrator, EPA,  San Francisco.

5. Steve Linder, Regional Project Manager,  EPA, San Francisco, CA.

6.  Marcia   Lindsey,   State  and   Regional   Coordinator,  State
Involvement Section, EPA, Arlington, VA.

7. Jim McElfish, Environmental Law Institute, Washington, D.C.

8. Murray Newton, Chief,  State and Local Coordination Branch, EPA,
Arlington, VA.

9. Chris O'Donnel,  Office of Policy,  Planning and Evaluation, EPA,
Washington, D.C.

10. Peter Orth,  Chief,  Contracts  & Information Management  Section,
EPA,  San Francisco, CA.

11.  Jerry  Parker,  Office  of  Underground  Storage  Tanks,  EPA,
Arlington, VA.

12. Stan Phillippe, Chief, Site Mitigation Branch, Toxic Substances
Control  Program,  California Department  of   Health  Services,
Sacramento, CA.

13. Michael Pickard, Sacramento Toxics Campaign,  Sacramento, CA.

14. Richard Vaille,  State Programs Branch,  EPA, San Francisco, CA.

15. Karen Ueno,  Regional Project Manager, EPA,  San Francisco, CA.

16.  Jeffrey  Zelikson,   Director,   Hazardous   Waste  Management
Division,  EPA, San Francisco, CA.

17. Vincent Zenone,  On-Scene Coordinator, EPA,  Region 3.
                                43

-------

-------