United States
Environmental Protection
Agency
Solid Waste and
Emergency Response
9360.8-11
EPA 540-R-96-044
PB96-963255
February 1997
Superfund
GUIDANCE FOR USE OF THE OIL
SPILL LIABILITY TRUST FUND
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OSWERDir. 9360.8-11
EPA 540-R-96-044
February 1997
GUIDANCE FOR USE OF THE
OIL SPILL LIABILITY TRUST FUND
Office of Emergency and Remedial Response
U.S. Environmental Protection Agency
Washington, DC 20460
U.S. Environmental Protection Agency
Region 5, Library (PI-12J)
77 West Jackson Boulevard, 12th Floor
Chicago, IL 60604-3590
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NOTICE
The policies and procedures set forth herein are intended solely as guidance for government
personnel. They are not intended, nor can they be relied on, to create any rights enforceable by
any party in litigation with the United States. U.S. Environmental Protection Agency (USEPA
or EPA) officials may decide to follow this guidance or act at variance with it, based on an
analysis of specific site circumstances. The Agency also reserves the right to change this
guidance at any time without public notice.
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TABLE OF CONTENTS
ACRONYM LIST iv
INTRODUCTION 1
PURPOSE 1
AUTHORITY 1
EPA OIL FUNDING MECHANISMS 2
EPA Oil Appropriation 2
The Emergency Fund 2
ROLES AND RESPONSIBILITIES 3
Regional Program Office 3
Regional Financial Management Office 4
Cincinnati Financial Management Center 4
Office of Emergency and Remedial Response 5
INITIATING THE RESPONSE 7
ACCESSING THE FUND 7
Extramural Costs 7
Intramural Costs 7
Reportable Costs 7
PROJECT CEILING REQUEST FORM 9
OBTAINING INCIDENT-SPECIFIC ACCOUNT NUMBERS 10
Reimbursable Account Number 10
Non-Reimbursable Account Number 10
FUNDING THE REMOVAL ACTION 11
Multi-incident IAG 11
Incident-specific IAG 11
INITIAL POLREP 12
CHECKLIST FOR INITIATING RESPONSE 14
DURING THE RESPONSE 15
RESPONSE SUPPORT 15
Coast Guard BOAs 15
Pollution Removal Funding Authorizations (PRFAs) 15
COST MONITORING/REPORTING 16
Cleanup Contractors (ERCS, BOA) 17
Technical Support Contractors (START, REAC) 17
Other Agencies Costs 17
EPA Intramural Costs 17
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LONG-TERM REMOVALS ; 18
Long-Term Removal Plan 18
Annual Funding 18
INTERIM COST DOCUMENTATION 19
CHECKLIST FOR COST MONITORING AND FINANCIAL MANAGEMENT 19
COMPLETING THE REMOVAL 21
COST DOCUMENTATION 21
Cost Documentation Package Contents 21
Cost Documentation Submission Timeframes 23
CHECKLIST FOR CLOSING OUT THE PROJECT 24
APPENDIX A - OIL SPILL ACCOUNT CODE STRUCTURE 25
APPENDIX B - PRFA FORMS 29
APPENDIX C - COST DOCUMENTATION PACKAGE TEMPLATE 35
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ACRONYM LIST
AOC
BOA
CFMC
CWA
DOT
EEZ
EO
ERRS
FAN
FPN
FTE
IAG
IFMS
MARS
MOU
NCP
NPFC
NRDA
OERR
OPA
OPAC
OSC
OSLTF
OSWER
PO
POLREP
PRP
PRFA
RCMS
REAC
RRT
SPCC
START
TDD
TOPS
USCG
USEPA
Acknowledgment of Completion
Basic Ordering Agreement (Coast Guard)
Cincinnati Financial Management Center (EPA)
Clean Water Act
Department of Transportation
Exclusive Economic Zone
Executive Order
Emergency and Rapid Response Services
Fixed Account Number
Federal Project Number
Full-Time Equivalent
Inter-Agency Agreement
Integrated Financial Management System
Management Accounting Reporting System
Memorandum of Understanding
National Oil and Hazardous Substances Pollution Contingency Plan
National Pollution Funds Center
Natural Resources Damage Assessment
Office of Emergency and Remedial Response
Oil Pollution Act of 1990
On-Line Payment and Collection System
On-Scene Coordinator
Oil Spill Liability Trust Fund
Office of Solid Waste and Emergency Response
Project Officer
Pollution Report
Potentially Responsible Party
Pollution Removal Funding Authorization
Removal Cost Management System
Response Engineering and Analytical Contract
Regional Response Team
Spill Prevention Control and Countermeasure
Superfund Technical Assessment and Response Team
Technical Direction Document
Technical Operating Procedures (Coast Guard)
United States Coast Guard
United States Environmental Protection Agency
IV
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INTRODUCTION
PURPOSE
This guidance document has been prepared to assist On-Scene Coordinators (OSCs) and
financial management personnel in accessing and using the Oil Spill Liability Trust Fund
(OSLTF) in order to conduct oil pollution removal actions under Section 31 l(c) of the Clean
Water Act (CWA) and Section 1012 of the Oil Pollution Act of 1990 (OP A), and fully
accounting for OSLTF funds. It will provide assistance to those responsible for:
• Initiating an oil pollution removal action by accessing the OSLTF;
• Managing and tracking finances throughout the response, and;
• Providing cost documentation of oil pollution removal costs to the EPA Cincinnati
Financial Management Center (CFMC) and the U.S. Coast Guard National Pollution
Funds Center (NPFC).
This document details the requirements and procedures for use of the OSLTF that are described
in the Memorandum of Understanding between the U.S. Environmental Protection Agency and
the U.S. Coast Guard for use of the Oil Spill Liability Trust Fund (MOU), including the
requirement to provide final cost documentation to the NPFC no later than 90 days following
receipt of final contractor invoice or payment of final EPA travel vouchers for the response.
AUTHORITY
The Oil Pollution Act of 1990 (OPA) was enacted to augment the authorities and requirements
under CWA, in response to the need for expanded legislation to govern the discharge or
substantial threat of discharge of oil into the navigable water, adjoining shorelines, and exclusive
economic zone of the United States. OPA and the CWA provide a comprehensive removal,
liability and compensation framework for oil pollution that affects or threatens the waters of the
United States, its adjoining shorelines, and the exclusive economic zone. Congress designated
the OSLTF as a funding source to execute the Statute. The OSLTF pays for oil spill cleanups
and damages in cases where the responsible party cannot or will not pay for the cleanup.
In Executive Order (EO) 12777, the President directed the U. S. Coast Guard (USCG) to manage
the OSLTF. In response to this fiduciary responsibility, the National Pollution Funds Center
(NPFC) was established within the USCG to administer disbursement of OSLTF money and the
process of recovering the costs of oil spill removals from responsible parties. Cost recovery
actions are initiated and conducted by the NPFC. EPA does not pursue cost recovery for oil spill
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removal actions. Cost documentation provided by EPA OSCs for responses to inland oil spills
are the basis for subsequent cost recovery efforts by the NPFC.
The National Oil and Hazardous Substances Pollution Contingency Plan (40 CFR 300), or NCP,
contains details for implementing removal actions under OPA and the CWA and discusses the
role of the OSC. Under EO 12777, the EPA is responsible for responding to oil discharges or
substantial threats of discharge in the inland zone of the U.S. as defined in the NCP. The USCG
is responsible for responding in the coastal zone. Regional and Area Contingency Plans
document the specific boundaries of these zones.
EPA OIL FUNDING MECHANISMS
EPA Oil Appropriation
EPA receives an oil program appropriation each year from Congress. The appropriation provides
funds to support EPA's oil spill prevention and preparedness activities and associated oil
program administrative costs. Activities such as Facility Response Plan review, Spill
Prevention, Control, and Countermeasures regulations and inspections, Area Contingency Plan
development, etc., are funded under EPA's oil appropriation.
The Emergency Fund
Annually, $50 million is apportioned from the OSLTF for the Emergency Fund to fund federal
and state oil pollution removal activities and initiation of natural resources damage assessments.
The annual $50 million apportionment is added to the existing Emergency Fund balance, so the
total amount available for oil pollution removal activities can exceed $50 million.
EPA accesses the Emergency Fund of the OSLTF through reimbursable Inter-Agency
Agreements (lAGs). At the beginning of each fiscal year, the EPA and NPFC execute a national,
multi-incident IAG to provide funding for EPA activities in conducting incident-specific oil
pollution removal actions. The Headquarters Office of Emergency and Remedial Response
(OERR) coordinates regional estimates of oil pollution removal funding requirements each fiscal
year for both intramural and extramural costs. Once the regional estimates have been received
and compiled, OERR forwards the request for total funding to the NPFC, who initiates the IAG.
For certain removal actions, an incident-specific IAG may be executed. The NPFC may request
that an incident-specific IAG be used when removals are lengthy or large ceiling amounts are
anticipated. An incident-specific IAG is negotiated directly between the Regional Program
Office and the NPFC.
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Funding from the multi-incident IAG or incident-specific lAGs with the NPFC can only be used
for incident-specific oil pollution removal activities for which there is a Federal Project Number
(FPN) issued by the Coast Guard.
ROLES AND RESPONSIBILITIES
The following roles and responsibilities are presented as a framework to meet the requirements
for oil pollution removal funding and cost documentation. Specific roles and responsibilities
among financial management and program offices and personnel within the regions may differ
from those outlined below.
Regional Program Personnel
EPA regional Superfund/Oil program personnel and OSCs have responsibility for initiating and
conducting oil pollution removal actions, managing use of OSLTF funds, and documenting all
incident-specific OSLTF costs. Specifically, the responsible OSC or regional program person
must:
• Obtain an FPN and site ceiling from the appropriate Coast Guard District Office when
initiating an oil response.
• Ensure that adequate funds are available in the Regional allocation of the national
multi-incident IAG for oil spill response emergencies.
• Negotiate incident-specific lAGs with the NPFC when appropriate for large ceiling or
long-term removals.
• Request account numbers from CFMC at the beginning of an oil spill response.
• Track all costs incident-specifically, using the appropriate account number for each
removal action.
• Provide Pollution Reports (POLREPS) to USCG District Office and NPFC at response
initiation and regularly throughout the response.
• Assemble cost documentation packages on each oil pollution incident and send copies
to the CFMC and NPFC.
• Retain complete case documentation (POLREPS, log books, pictures, etc.) of an oil
spill and provide copy to NPFC if requested.
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Regional Financial Management Personnel
EPA regional financial management personnel generally support OSCs in assembling accurate
and complete cost documentation. The role of regional financial management personnel is to:
• Provide copies of timesheets, travel authorizations, travel vouchers and receipts, upon
request by the OSC.
• Provide financial reports upon request by the OSC.
• Make accounting adjustments in IFMS as necessary to support accurate billing for
reimbursement and cost recovery.
Cincinnati Financial Management Center
The CFMC is responsible for ensuring that EPA provides accurate and complete cost
documentation and that EPA is properly reimbursed by NPFC for incident-specific oil pollution
removal costs. To accomplish this, CFMC will:
• Issue incident-specific account numbers for oil pollution removal actions when
requested by the OSC.
• Perform reconciliations on cost documentation packages provided by OSCs and ensure
proper cost documentation is provided to NPFC for reimbursement and cost recovery.
• Request that the OSC initiate changes and corrections to cost documentation packages,
as necessary for reconciliation and billing.
• Provide billing summaries to the NPFC with total reconciled incident-specific costs.
• Initiate and process reimbursement for EPA response costs from USCG via U.S.
Treasury's On-line Payment and Collection System (OPAC).
• Retain the final cost documentation package used for billing and reimbursement, with
supporting documentation of reconciliations and corrections.
• Provide information and training to regional personnel on oil spill response financial
management.
• Review and comment on oil spill response funding policies and procedures .
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Office of Emergency and Remedial Response
OERR is responsible for overseeing the Oil Program, including oil spill response, and ensuring
that the Regions have adequate resources and guidance for conducting oil spill response.
Specifically, OERR will:
• Coordinate regional budget requests for the annual multi-incident IAG.
• Negotiate the annual multi-incident IAG with the NPFC and provide the Project Officer
for managing the IAG.
• Request amendments to the multi-incident IAG as necessary to ensure adequate funding
for regional response needs.
• Negotiate memoranda of understanding or other agreements with USCG for use of the
OSLTF.
• Provide guidance and policy relating to oil response activities and use of the OSLTF.
• Oversee cost documentation performance of Regions.
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INITIATING THE REMOVAL ACTION
ACCESSING THE FUND
A Federal Project Number (FPN) and project ceiling must be obtained for each oil pollution
removal action that requires the expenditure of funds from an IAG with the NPFC. This includes
actions where only technical assistance support is tasked to respond and/or where EPA is
providing oversight, monitoring or is directing the response.
To initiate funding for an oil pollution removal action, the OSC must contact the appropriate
USCG District Office to obtain an FPN and an approved project ceiling no later than conclusion
of the preliminary assessment described in the NCP (40 CFR 300.305). This is usually done by
telephone. An oil pollution removal project ceiling is the total amount in expenditures from the
Emergency Fund of the OSLTF that is authorized to be incurred for incident-specific oil
pollution removal activities.
For long-term removals, the USCG District Office will normally approve a ceiling amount for
only the first year's estimated costs of the removal. A ceiling increase must be obtained annually
thereafter for each coming year's estimated costs.
Below is a sample Project Ceiling Request Worksheet that the OSC may use for estimating
project costs. When estimating costs for a project ceiling, OSCs must take into account the
following cost categories:
• Extramural Costs These include all support and cleanup contractor costs payed by
EPA, including START, REAC, ERRS, and USCG BOA contracts. To allow for
unforseen extramural expenses, OSCs may include a 20 percent contingency.
• Intramural Costs These include all reimbursable EPA direct costs, such as incident-
specific salary costs for EPA personnel not charging to an Oil Fixed Account Number
(FAN), overtime or other premium pay for all EPA personnel, travel, and equipment
usage (such as costs for EPA or GSA-owned vehicles). Costs for regular time for Oil
FAN personnel are not included in the ceiling. OSCs should not include any indirect
intramural costs in their project ceilings until an indirect rate has been determined by
EPA.
• Reportable Costs These include other agency response costs not paid by EPA, but
which are paid directly by the NPFC from the Emergency Fund of the OSLTF. These
costs must be tracked against the ceiling and reported for cost recovery purposes, and
include USCG Strike Team costs, USCG Central Oil Identification Lab costs, or costs
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for other agency support if funded through a Pollution Removal Funding Agreement
(PRFA). State and local government response costs, if directed by the OSC and
funded through a PRFA, must also be included.
Do not include costs of trustee agencies for Natural Resources Damage Assessment (NRDA)
initiation or third party claims for oil pollution damages in the project ceiling. NRDA initiation
costs and third party claims are funded separately by the NPFC.
If an FPN is opened for an anticipated oil spill removal action and after investigation it is
determined that no federal action is necessary, the OSC must notify the appropriate USCG
District Office that no costs from the OSLTF Emergency Fund were incurred, nor will any
costs be billed under an EPA/USCG IAG, and request that the FPN be closed. The EPA
Cincinnati Financial Management Center and the NPFC must also be notified of the request for
FPN closure.
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PROJECT CEILING REQUEST WORKSH
I. Extramural Costs
Technical Support Contractor (START, REAC, etc.)
Cleanup Contractor (ERRS, BOA, etc.)
Total Contractor Costs
20% Contractor Contingency
Total Extramural
II. Intramural Costs
EPA Reimbursable Labor Costs
Travel
EPA Equipment
Total Intramural
in. Non-EPA Reportable Costs
USCG Strike Team
Other (USCG Oil Lab, PRFAs, etc.)
Total Reportable
TOTAL ESTIMATED PROJECT CEILING
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OBTAINING INCIDENT-SPECIFIC ACCOUNT NUMBERS
After obtaining an FPN, the OSC must contact the Cincinnati Financial Management Center
(CFMC) to obtain incident-specific account numbers. CFMC issues two account numbers for
each oil pollution removal action; an incident-specific reimbursable account number and an
incident-specific non-reimbursable account number. All costs associated with the removal must
be tracked using the correct incident-specific account number. The appropriate EPA incident-
specific account number must be used on all extramural funding or tasking documents (Delivery
Orders, Technical Direction Documents, etc.) and on all travel authorizations and payroll
distribution time sheets, etc. that are associated with the removal.
Reimbursable Account Number
The reimbursable account number is for removal costs that are chargeable to a reimbursable IAG
with the NPFC. Reimbursable removal costs include the following cost categories:
• Personnel labor costs for non-oil Fixed Account Number (FAN) personnel. This may
include OSC labor costs and costs of other personnel providing incident-specific
response support, such as attorney support from Office of Regional Counsel or support
from financial management personnel for cost documentation;
• Premium pay (overtime, hazardous duty pay, etc) for all personnel;
• Personnel travel costs;
• Contractor costs;
• Other direct EPA costs, including use of government equipment.
Non-Reimbursable Account Number
The only costs charged to the non-reimbursable account number are response costs for the
regular hours of oil FAN personnel (personnel who are normally paid from the EPA Oil
Appropriation). These costs are not charged to a reimbursable IAG with the NPFC, but they
must be tracked incident-specifically for NPFC cost recovery purposes.
Detail on cost monitoring and documentation procedures is provided in the Cost Documentation
section of this guidance. Detail on the oil spill account code structure is provided in
Appendix A.
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FUNDING THE REMOVAL ACTION
The OSC must provide regional budget personnel with the spill name, FPN, EPA reimbursable
account number and Project Ceiling, as approved by the USCG District Office. The OSC must
coordinate with regional budget personnel to ensure that funding is available for all reimbursable
response costs. Funding will originate from either the regional allocation of the national multi-
incident IAG, or a regional incident-specific IAG.
Multi-incident IAG
Each Region receives an allocation from the annual national multi-incident IAG, based on the
Region's estimated annual needs for oil pollution removal actions. This allocation provides the
Regions with available funds for oil pollution removal emergency response. If additional
Regional funding from the multi-incident IAG is needed during the fiscal year the IAG Project
Officer at EPA Headquarters may request an amendment to the IAG from the NPFC, or may
coordinate with the Regions to reallocate funds among Regional accounts. Also, a small
contingency is allocated to Headquarters from the IAG, which may be transferred to Regions for
emergencies. If a Region requires additional funding from the multi-incident IAG during the
fiscal year, the Region should immediately contact the IAG Project Officer at EPA Headquarters
or the appropriate OERR Regional Center contact.
Incident-specific IAG
For costly or long-term oil pollution removal actions where there is sufficient time to execute an
incident-specific IAG, the Regions are encouraged to do so in order to conserve funding in the
multi-incident IAG for emergency response actions. Also, the NPFC may request that the
response be funded through an incident-specific IAG when any of the following conditions are
met:
• The OSC estimates that the removal will continue beyond two years from issuance of
the FPN.
• The OSC estimates that after the first year of the removal an additional $100,000 or
more will be required to complete the project.
• The removal involves construction of facilities or other improvements to real property.
An incident-specific IAG is negotiated directly between the EPA regional program office and the
NPFC. The OSC must coordinate with the NPFC Case Officer on the development and approval
of the IAG.
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To expedite the processing of an incident-specific IAG, the following procedure is suggested:
• The OSC informs the NPFC Case Officer of the need for incident-specific funding and
alerts the Case Officer that EPA will be providing the NPFC with a completed IAG
form for NPFC review and approval. The OSC should also inform the Case Officer of
any timing needs with respect to funding approval.
• The regional program and/or grants office prepares the EPA IAG form 1610-1 to ensure
that complete and accurate information pertaining to the incident is included. The IAG
form must include budget categories for personnel, travel and contracts.
• Once the IAG form has been completed, the regional program office should send the
IAG to the NPFC IAG Project Officer (USCG/NPFC (CF-1), 4200 Wilson Blvd., Suite
1000, Arlington, VA 22203) with a copy to the NPFC Case Officer. Include any other
relevant materials, such as a Long-Term Removal Plan described on page 16 of this
document.
• The NPFC will provide signature first since they are providing the funds. The IAG
form should not be signed by EPA until returned by the NPFC with appropriate
approval/signature.
• Upon receipt of the NPFC-approved IAG, the regional program office will send the
IAG through its regional IAG process for EPA approval. Coordination with the
regional grants office is encouraged. The grants office should be alerted that this is a
funds-in agreement for emergency removal action and that it must be expedited to
minimize oil pollution damage.
INITIAL POLREP
The OSC is required to document the oil pollution removal action with a POLREP consistent
with the NCP (40 CFR 300.135(m)). In addition to the regular distribution used for CERCLA
removal POLREPs, Oil POLREPs must also be distributed to the NPFC Case Officer and the
USCG District Office.
Oil pollution removal action POLREPS are similar to those used for CERCLA removal actions,
but with a few additions. Additional information is necessary because an Oil POLREP also
serves to keep the USCG District Office and NPFC Case Officer informed of the response and
apprised of issues with respect to cost recovery and third party claims. The initial POLREP
should be as comprehensive as possible. In addition to background and incident information, the
initial POLREP must;
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document the discharge or substantial threat of discharge of oil to navigable waters of
the U.S., the adjoining shorelines, or the exclusive economic zone. The POLREP must
identify the affected navigable waterway and specify whether oil has discharged to or
poses a substantial threat of discharging to the navigable waterway. If there is a
substantial threat of oil impacting a navigable waterway, the POLREP should describe
the circumstances under which a discharge would occur and the means by which oil
would enter the navigable waterway.
provide information on the source of the discharge or threat of discharge, where
possible and appropriate. The NPFC is responsible for claims and cost recovery, and
will notify the potentially responsible party for EPA-lead oil spill removals following
receipt from the OSC of the potentially responsible party's identity and address. If the
source of the discharge is unknown, the POLREP should describe what information
may be required in order to identify the responsible party(ies) (i.e., review of oil well
ownership records, title and deed searches, property boundary surveys, etc.).
provide information on the potential for third party claims as a result of oil pollution
damage, where possible and appropriate. (Note: Upon request of the OSC and
contingent upon availability, an NPFC Claims Officer will go to the scene of a removal
to assist the OSC in evaluating the potential for claims and in identifying sources and
potentially responsible parties.)
provide information on potential damage to natural resources. (Note: This does not take
the place of the requirement for Natural Resources Trustee notification.)
provide cost information that is available at the time the initial POLREP is developed.
The cost data should include any planned obligations against the ceiling in addition to
any actual expenditures.
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CHECKLIST FOR INITIATING RESPONSE
Contact the appropriate USCG District Office to obtain the FPN and to obtain
approval for Project Ceiling.
Obtain reimbursable and non-reimbursable account numbers from CFMC - Natalie
Koch at (513) 366-2062 or Connie Ely at (513)-366-2075).
Coordinate with budget personnel to ensure that funding is available from either
multi-incident or site-specific IAG.
Send initial POLKEP to Regional Management, NPFC Case Officer and USCG
District Office. In addition to background and incident information, the initial
POLREP must:
document the discharge or substantial threat of discharge of oil to navigable
waters of the U.S., the adjoining shorelines, or the exclusive economic zone.
provide information on the source of the discharge or threat of discharge,
where possible and appropriate.
_ provide information on the potential for third party claims as a result of oil
pollution damage, where possible and appropriate.
provide information on potential damage to natural resources.
provide cost information that is available at the time the initial POLREP is
developed
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DURING THE REMOVAL ACTION
RESPONSE SUPPORT
For necessary oil spill removal support OSCs may utilize the EPA technical support and cleanup
contractors normally available for CERCLA emergency response (START, ERRS, etc.),
provided that the contract scope-of-work and capacity includes provision for oil pollution
removal support. In addition to these services, OSCs may obtain response support for oil
pollution removals by accessing USCG Basic Ordering Agreements (BOAs), or by accessing
State or local government services using a Pollution Removal Funding Authorization, as
described below:
U.S. Coast Guard Basic Ordering Agreements (BOAs)
USCG BOAs are an acquisition vehicle issued by the USCG for emergency oil spill cleanup,
under which EPA has ordering authority. BOAs can be used only for emergency oil pollution
removal actions. EPA OSCs may initiate work under a BOA up to $25,000 by issuing an
Authorization to Proceed, but must contact the responsible EPA regional Contracting Officer as
soon as possible to confirm the contractual obligation via issuance of a Delivery Order. Only
Contracting Officers are authorized to issue Delivery Orders against the BOAs. For more detail
on use of the BOAs, see Appendix 9 of the MOU between EPA and the USCG on Use of the Oil
Spill Liability Trust Fund, guidance issued by the Office of Acquisitions Management, or
contact your Regional Contracting Officer.
Pollution Removal Funding Authorizations (FRFAs)
If an OSC requires the services of another government agency (Federal, State, or local) for an
EPA-lead oil removal action, and an applicable Interagency agreement with that organization has
not been executed, the EPA OSC may execute a PRFA. The PRFA is an acquisition tool
provided by the NPFC which may be used by OSCs to quickly obtain services needed from other
government agencies.
There are two types of PRFA forms, one for Federal agencies and one for non-Federal agencies.
Examples of these forms are provided in Appendix B of this document. The PRFA may not be
used by the OSC to obtain goods or services directly from private individuals, groups, or
companies.
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The PRFA commits the OSLTF to payment, via reimbursement, of costs incurred for oil
pollution removal activities undertaken by another government agency under the direction of the
OSC. Where a PRFA is used, the other agencies will be reimbursed directly by the NPFC.
Under the terms of a PRFA, an OSC may agree to forward reimbursement requests from another
government agency for costs incurred in providing any agreed upon removal services and
assistance which are consistent with the National Contingency Plan (NCP).
The OSC and other government agency must agree upon and document the specific goods and
services to be provided by developing an estimate of the total anticipated costs, with line item
breakdown of the principal expense categories. The PRFA may be amended by the OSC with
concurrence from the NPFC case officer. Additional assistance on the use of PRFAs may be
obtained from the NPFC Case Officer.
COST MONITORING/REPORTING
It is very important that the OSC keep careful records of the events associated with the discharge
and removal. Once the removal activities have begun, the OSC should complete POLREPS
throughout the removal to keep the USCG District Office and NPFC apprised of the response
progress and ensure that response activities are being managed within the project ceiling. Every
POLREP should show the financial status of the removal; current ceiling, costs to date, and an
estimate of other obligations to date. If POLREPs are done on an infrequent basis for long-term
actions, the OSC must keep the USCG District Office and NPFC apprised on a regular basis of
response activities and expenditures by other means, such as via telephone.
It is strongly recommended that OSCs compile costs and supporting documentation during the
course of the removal action. Diligence in maintaining accurate cost documentation throughout
the removal will minimize the burden of fulfilling the cost documentation requirements at six-
month intervals or once the removal action has been completed. More information on cost
documentation requirements is provided in Section IV - COMPLETING THE REMOVAL
ACTION.
If the OSC expects to reach the ceiling prior to the conclusion of the removal action, he or she
must request a ceiling increase from the appropriate USCG District Office. Under no
circumstances may the OSC obligate funds or incur costs in excess of the ceiling.
OSCs should use the Removal Cost Management System (RCMS) or other acceptable format to
track, on a daily basis, costs being charged against the ceiling. The OSC may also use the
services of the USCG Strike Team to track daily costs using the USCG tracking system. The
major cost categories to be tracked, and sources of cost information, are summarized below:
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Cleanup Contractors (ERRS, BOA)
These costs should be documented and billed in accordance with the requirements specified in
the contract used. The OSC must monitor contractor activity on a daily basis to certify that
contractor services were authorized and rendered as stated. Normally, daily resource
documentation forms specified in the contract will be prepared by the contractor and signed by
the OSC. The cleanup contractor will prepare a detailed invoice of the actual costs incurred,
which must be promptly certified by the OSC and sent to the Financial Management Division in
Research Triangle Park, NC for payment.
Technical Support Contractors (START, REAC)
When issuing tasking documents for oil spill response technical support, OSCs and/or Project
Officers must make sure that a contractor cost documentation report (sometimes called a cost
documentation "letter report") is requested as one of the deliverable items. These reports will be
used to fulfill the requirement for EPA cost documentation where the contractor bills in summary
amounts rather than on a delivery order or site-specific basis. Upon completion of work at a site,
the contractor must submit a report identifying incident-specific costs. The report must include
dates of contractor work performance, labor costs, travel costs, contractor purchases, G&A,
overhead, base and award fee (if appropriate), total invoiced amount under this tasking and a
brief description of the contractor activity performed.
Other Agencies Costs
Other agencies' incident-specific response costs, including USCG Strike Team, USCG Marine
Safety Lab, or other Federal, State or local agencies funded through an OSC-approved PRFA or
otherwise paid directly by the NPFC, must be accounted for within the overall site ceiling and
monitored appropriately. At the completion of the response, the other agency should provide the
OSC with a summary of incident-specific costs for the response.
EPA Intramural Costs
EPA site-specific direct hours should be tracked and updated on a pay-period basis. Once
Headquarters has developed an indirect rate for oil responses, this will be used to calculate
indirect costs.
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LONG-TERM REMOVALS
Long-term removals are characterized in the MOU as any removal that meets one or more of the
following conditions:
• The OSC estimates that the removal will continue beyond two years from issuance of
the FPN.
• The OSC estimates that after the first year of the removal an additional $100,000 or
more will be required to complete the project.
• The removal involves construction of facilities or other improvements to real property.
Long-term removals have special requirements, including the need for a Long-Term Removal
Plan, annual funding and interim cost documentation.
Long-Term Removal Plan
The Long-Term Removal Plan provides information on the long-term response strategy and
funding. The Long-Term Removal Plan should contain all resource considerations relating to the
removal project from its inception to completion, including;
• Funding needs on a fiscal year basis. This is necessary to allow the NPFC to plan for
future obligations against the Emergency Fund.
• If construction of facilities or improvements to real property are involved, the Plan must
include detailed descriptions of structures and installed equipment, including costs
associated with running and terminating the system. This is necessary to support cost
recovery and to facilitate disposal of property upon removal completion.
• Disposition of property. The Plan must describe any understanding or arrangements
made in advance with any other parties regarding long-term operation of the system or
disposition of property.
Annual Funding
Incident-specific lAGs normally provide funding on an annual or a fiscal year basis. For long-
term removals funded under an incident-specific IAG, an additional ceiling amount will be
required each year as will an amendment to the IAG. The OSC should request the additional
ceiling amount for the next 12-month period from the USCG District Office, and initiate an
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amendment to the IAG with the NPFC Case Officer. At this time the OSC should also update
the Long-Term Removal Plan as appropriate.
INTERIM COST DOCUMENTATION
In accordance with the MOU, six months from initiation of the removal action and every six
months thereafter until site completion, the OSC must assemble an interim cost documentation
package and forward copies to the CFMC and NPFC. The cost documentation package must
contain all of the elements described in the Cost Documentation portion of this guidance for
costs incurred during the six month period or that have not been provided in previous interim
cost documentation submittals. The cover letter should indicate that this is interim cost
documentation and that removal work is ongoing.
CHECKLIST FOR COST MONITORING
AND FINANCIAL MANAGEMENT
Send progress POLREPs with current financial information to NPFC Case Officer and
USCG District Office.
Track daily project costs using the RCMS, USCG or equivalent tracking system .
For long-term removals, prepare Long-term Removal Plan and provide to NPFC.
If necessary, contact District office to request a ceiling increase and initiate an
amendment to the LAG with the NPFC Case Officer.
Every six months, assemble interim cost documentation package and forward to
CFMC and NPFC.
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COMPLETING THE REMOVAL
At the end of the removal, the OSC must submit a final POLREP to the NPFC and USCG
District Office and prepare a final cost documentation package.
COST DOCUMENTA TION
In order to meet the MOU requirement to provide final costs to the NPFC for reimbursement
within 90 days, OSCs must submit the cost documentation package to CFMC within thirty days
after receipt of final contractor invoice or receipt of payment of final EPA travel vouchers. Each
cost documentation package must be forwarded to the EPA, Cincinnati Financial Management
Center, Cincinnati, Ohio 45268 (ATTN: Natalie Koch). CFMC will reconcile the cost package
for final costs and either forward the costs to NPFC for reimbursement or return the package for
corrections.
Cost Documentation Package Contents
The cost documentation package serves two important purposes; it provides the basis for
reimbursement to EPA from the OSLTF for applicable incident-specific response costs, and it
supports NPFC cost recovery from responsible parties. The cost documentation package should
classify costs and provide supporting documentation for all site-specific reimbursable, non-
reimbursable and reportable costs.
A cost documentation package template is included as Attachment C. A sample completed cost
documentation package can be obtained by contacting the Cincinnati Financial Management
Center (Natalie Koch or Connie Ely).
Final and interim cost documentation packages must include the following, as applicable:
• Summary Letter of Cost Documentation. A brief summary of cost documentation
information should be included in a cover letter. This letter should be signed by the
OSC. The letter should include a cost summary indicating which costs are
reimbursable and which are non-reimbursable (reportable costs can be listed in the non-
reimbursable column). It should provide line item costs for each major cost category
(e.g., salary, travel, contractor expenses, etc.). The letter should also provide any
explanations necessary and appropriate to understand any unclear cost elements or
issues. Finally, this letter must indicate whether or not costs included in the package
are final.
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Personnel Costs. This section should include a cover sheet summary of these costs
identifying the employees' names, grades or hourly rate (including benefits), hours,
appropriate subtotals, and an overall total indicating which costs are reimbursable and
which are non-reimbursable. Copies of the timesheets for all employees participating in
the removal should also be included; these timesheets must include the incident-specific
account number(s), incident name, and hours applicable to the incident. Finally, this
section should also include a MARS (Management and Accounting Reporting System)
report for each pay period for all hours applicable to the incident. These payroll reports
may be obtained from your Regional Financial Management Office. To obtain a
sample of the a standard MARS payroll report, please contact CFMC at 513-366-2062.
(NOTE: Timesheets and payroll reports must be redacted to remove data protected by
the Privacy Act, such as social security numbers.)
Personnel Travel Costs. Include a summary which indicates employees' name, travel
authorization (TA) number, employee subtotal, and overall incident total.
Documentation must include copies of each TA and liquidated travel vouchers with
copies of receipts. (NOTE: TAs, Travel vouchers, and receipts must be redacted to
remove data protected by the Privacy Act, such as social security numbers.)
Other EPA Direct Costs. These costs might include use of EPA vehicles, other
government-owned equipment, and miscellaneous purchases such as film, film
processing, safety equipment, etc. Documentation for these costs should include a
description of the item, unit of use (Le., per hour or day, etc.), applicable rate (i.e., a
pro-rata share of the cost for the useful life of the item chargeable on a unit basis to the
incident), and the total charge. Government-owned equipment utilization should be
recorded on a daily basis.
EPA Technical Assistance Contractor Costs (START. REAC. etc.X Provide a cover
sheet with site name and/or FPN, the applicable Technical Direction Document (TDD)
number(s), total costs by TDD and total contractor costs. Include copies of each TDD
and any amendments for contractor-related response activity at the site and copies of
the Acknowledgment of Completion (AOC). Also, provide copies of contractor cost
documentation reports, which must include dates of contractor work performance, labor
costs, travel costs, contractor purchases, G&A, overhead, applicable base and award fee
(if appropriate), total invoiced amount under this tasking and a brief description of the
contractor activity performed. Finally, this part of the package must include copies of
all contractor billing statements which include costs by applicable TDD with the
applicable line item underlined.
Cleanup Contractor Costs (ERRS. BOAV A cover sheet should be provided with
contractor name and contract number and total cleanup contractor costs. Attachments
must include copies of Authorization(s) to Proceed and/or Delivery Orders. Normally,
daily resource documentation forms specified by a contract will be prepared by the
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contractor and should be included. A copy of each OSC-certified contractor invoice
must be included in the cost documentation report. The OSC may also request that the
contractor provide a summary report of the invoices provided.
Other Government Agency Costs. Federal, State, or local agencies participating in an
EPA-lead removal under the direction of an EPA OSC should document costs in
accordance with the requirements specified in the applicable agreement. Where an IAG
is utilized to fund another Federal agency, the EPA will reimburse the other agency and
the OSLTF will reimburse EPA. Where PRFAs are utilized, other agencies will be
reimbursed directly by the OSLTF. In either case, cost documentation provided by the
other agencies should be included in the cost documentation package. A cover sheet
should be provided that identifies these costs as reimbursable or reportable. This
documentation should include: (1) copies of tasking documents issued by the OSC
which describe the equipment or service provided by the other agency; and (2) copies of
records detailing work performed, travel, labor, equipment, and any additional items
with unit costs and subtotals for each category.
Cost Documentation Submission Time Frames
Timely submission of cost documentation packages is vital to the cost recovery process. Final
EPA costs must be submitted to NPFC not later than 90 days following receipt of final contractor
invoice or receipt of payment of final EPA travel voucher. The OSC does not have 90 days to
complete the cost documentation package. OSCs are strongly advised to initiate the cost
documentation process, either throughout the duration of the response, or immediately after the
incident is completed.
OSCs must assemble the cost documentation package and forward copies to the CFMC and
NPFC Case Officer within 30 days after receipt of final contractor invoice or receipt of payment
of final EPA travel vouchers, whichever date applies (if a contractor was used on site, the receipt
of final contractor invoice date will apply; if no contractor was used on site, the date of payment
of EPA travel vouchers will apply). If, for whatever reason, the OSC is not able to provide the
cost documentation package to CFMC within the above time frame, the OSC must inform
CFMC of the reasons why, and indicate when the documentation package will be provided.
CFMC will reconcile the package and either forward the reconciled costs to NPFC or return the
package to the OSC for corrections. If the package is returned by CFMC requesting corrections,
these must be completed and forwarded to CFMC with supporting documentation within 30
days.
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Send cost documentation package to the CFMC within 30 days after receipt of final
contractor invoice or payment of travel voucher.
CHECKLIST FOR CLOSING OUT THE PROJECT
Send final POLREP to NPFC Case Officer and USCG District Office.
Prepare Cost Documentation Package (Appendix C) consisting of:
• Incident Report
• Project Cost Summary Sheet
• OSC Certification of Costs
• EPA Personnel Costs
— Summary Sheet
— Time sheets
— MARS Payroll Report
• EPA Personnel Travel Costs
— Summary Sheet
— Travel Authorizations
— Vouchers
• EPA Equipment Costs (if applicable)
• Contractor Costs (if applicable)
— Summary Sheet
— TDD(s)
- AOC
— Letter Report
— Contractor Invoice
• Strike Team Costs
— Include package submitted by Strike Team at completion
• Cleanup Contractor Costs
— Authorization to Proceed
— Daily Cost Forms
— Contractor Invoices
• Other Government Agency Costs
— lAGorPRFA
— Summary Report of Agency activities
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APPENDIX A
OIL SPILL ACCOUNT CODE STRUCTURE
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FIELD
Budget Fiscal Year
Fund(Appropriation Code)
Budget/Organization Code
Program Element
Site/Project Field
Cost/Organization Code
Example:
Oil Spill Account Code Structure
POSITION NUMBER
1-4
5-10
11-17
18-26
27-34
35-41
Budget Approp. Budget/Org
FY Code Code
Program
Element
Reimbursable Account Number 97 HR 01ROX03 P8X
Non-Reimbursable Account Number 97 H 01R0003 G7X
Budget Fiscal Year Field Positions 1 and 2 of the Budget Fiscal Year Field represent beginning
budget fiscal year, and positions 3 and 4 represent ending budget fiscal year. The first two
positions of the field are for single year and no-year funds. All four positions are used for two
year funds. Funds provided by OSLTF funds are no-year money. However, because the Multi-
incident IAG between EPA and USCG is executed annually, the funding provided under the Oil
IAG is considered one-year money to be used for obligations only incurred within that fiscal
year. For Oil Account Numbers only positions 1 and 2 will be used.
Fund Field/Appropriation Code The 5th position is for the Fund/Appropriation and position 6th
is for the appropriation sub-account. For appropriated Oil dollars only the 5th position is used.
For reimbursable oil dollars the 5th and 6th positions are used citing H (for Oil) in the 5th
position and R in the 6th position indicating that it is reimbursable funding. The remaining 7-10
positions are either restricted or reserved for future use.
Budget/Organization Code Positions 11 and 12 are for the character allowance holder which
would be Headquarters or one of the Regions. Position 13 would be the responsibility center
(generally for Oil it is the program office within the region) and 14 is the local option. Position
15 will either be an X to indicate that it is a reimbursable account or a 0 for the non-reimbursable
account. Positions 16 and 17 are the incident-specific oil spill identifier.
Program Element Field Positions 18 - 20 are for the 3 character program element number. For
oil accounting, two program elements will be used: P8X for reimbursable costs and G7X for
recoverable costs.
Site/Project Field Currently this field is not used for oil accounting purposes and should be left
blank.
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APPENDIX B
POLLUTION REMOVAL FUNDING AUTHORIZATION FORMS
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Federal Agency
Pollution Removal Funding Authorization
Recipient Agency:
Address:
1. Purpose
This document authorizes reimbursement to the Recipient Agency from the Oil Spill
Liability Trust Fund for certain removal costs incurred in response to the following pollution incident,
, FPN # . This funding authorization is expressly
contingent on the Recipient's compliance with all requirements contained herein.
2. Approved Functions and Reimbursement Limit
Costs will be reimbursed only for actions that are directed or approved in advance by the OSC.
Approval may be verbal or written. Assessment, restoration, rehabilitation or replacement of natural
resources damaged by the spill are not covered.
Maximum limit of authorization: $ .
3. Conditions
See attached page(s) for special conditions, dates of performance, directions or approvals.
4. Period of Authorization
This authorization shall remain in effect until the completion date specified by the OSC
(which normally corresponds to the date of final removal activities).
5. Reimbursement Procedure
Upon completion of removal activities, the Recipient Agency will submit an SF-1080/1081 to
the OSC with detailed records of expenditures and activities for which reimbursement is sought. The
agency may elect to use its own records providing an equivalent amount of documentation which has
NPFC approval, or the agency may elect to use NPFC's Resource Cost Documentation package. The
agency must submit the final request for reimbursement, supported by the required documentation,
within 90 days following the completion date. If at the end of 90 days from final removal activity, there
are any costs for which reimbursement has not been requested, written notice will be sent to the agency
and 30 days later any balance remaining in the account will be deobligated.
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Federal Agency
Pollution Removal Funding Authorization (cont'd)
6. Accounting Data
Document Control Number:
7. Points of Contact
A. Tel( )
osc
B- Tel ( )_
Recipient Agency Representative
Attachments: No Yes
C- Tel ( ).
NPFC Case Officer
8. Authorizing Official
Signature:
Title: Date:
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Non-Federal Agency
Pollution Removal Funding Authorization
Recipient Agency:
Address:
1. Purpose
This document authorizes reimbursement to the Recipient Agency from the Oil Spill
Liability Trust Fund for certain removal costs incurred in response to the following pollution incident,
, FPN # . This funding authorization is expressly
contingent on the Recipient's compliance with all requirements contained herein.
2. Approved Functions and Reimbursement Limit
Costs will be reimbursed only for actions that are directed or approved in advance by the OSC.
Approval may be verbal or written. Assessment, restoration, rehabilitation or replacement of natural
resources damaged by the spill are not covered.
Maximum limit of authorization: $ .
3. Conditions
See attached page(s) for special conditions, dates of performance, directions or approvals.
4. Period of Authorization
This authorization shall remain in effect until the completion date specified by the OSC
(which normally corresponds to the date of final removal activities).
5. Reimbursement Procedure
Upon completion of removal activities, the Recipient Agency will submit an SF-108071081 to
the OSC with detailed records of expenditures and activities for which reimbursement is sought. The
agency may elect to use its own records providing an equivalent amount of documentation which has
NPFC approval, or the agency may elect to use NPFC's Resource Cost Documentation package. The
agency must submit the final request for reimbursement, supported by the required documentation,
within 90 days following the completion date. If at the end of 90 days from final removal activity, there
are any costs for which reimbursement has not been requested, written notice will be sent to the agency
and 30 days later any balance remaining in the account will be deobligated.
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Non-Federal Agency
Pollution Removal Funding Authorization (cont'd)
6. Hold Harmless and Indemnify
By performing any action or seeking any reimbursement under this funding authorization, the
Recipient Agency agrees to indemnify and hold harmless the United States of America, and all of its
departments and agencies, including without limitation the U.S. Coast Guard and the Oil Spill Liability
Trust Fund ("United States"), with respect to any and all suits, actions and claims, of whatever kind or
nature, arising from or relating to the Recipient's actions, omissions, or other involvement in this spill.
Recipient Agency further agrees to waive any rights of actions and/or claims which it may have against
the United States arising from or relating to its actions, omissions, or other involvement in this spill.
7. No Agency
Nothing in this funding authorization is intended to create an agency relationship between the
Recipient Agency and the United States of America (or any of its departments, agencies, or employees).
Nor shall anything in this funding authorization be construed as creating an agency relationship. By
performing any action or seeking any reimbursement under this funding authorization, the Recipient
Agency agrees that it has not been authorized to act as an agent of the United States, and shall not act in
any such capacity.
8. Accounting Data
Document Control Number:
9. Points of Contact
A. Tel ( )
osc
B. Tel ( )
Recipient Agency Representative
C. Tel ( )
NPFC Case Officer
8. Authorizing Official
Signature:
Title: Date:
Attachments: No Yes
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APPENDIX C
COST DOCUMENTATION PACKAGE TEMPLATE
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PROJECT COST SUMMARY SHEET
FPN: INCIDENT NAME:
EPA REIMBURSABLE ACCOUNT NUMBER:
Reimbursable1 Non-Reimbursable/Reportable
EPA Personnel Costs
EPA Travel Costs
Other EPA Direct Costs
EPA Contractor Costs
USCG Strike Team Costs
Other Government Agency Costs
TOTALS
OSC's STATEMENT
This package presents a summary of and supporting documentation for removal costs incurred
on the oil pollution incident noted above. To the best of my knowledge all costs are final
unless noted in the package.
Signature:
Printed Name:
On-Scene Coordinator
1 For purposes of this document, reimbursable means all costs which are reimbursable to EPA under the
EPA/USCG IAG.
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EPA PERSONNEL COSTS
FPN:
INCIDENT NAME:
NAME
FIXED
ACCOUNT
NUMBER
(FAN)
GRADE
or
HRLY
RATE
REGULAR
HOURS
OVERTIME
HOURS
SUBTOTAL
REIMBURSABLE
COSTS
NON-
REIMBURSABLE
COSTS
TOTAL EPA PERSONNEL COSTS: $_
ATTACHMENTS:
Time sheets (NOTE: Time sheets and payroll reports must be redacted to remove
information protected by the Privacy Act, including Social Security Numbers, etc.)
MARS Payroll Report
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EPA PERSONNEL TRAVEL COSTS
FPN:
INCIDENT NAME:
NAME
TA NUMBER
PERIOD OF TRAVEL
VOUCHER
AMOUNT
EPA PERSONNEL TRAVEL COSTS TOTAL: $
ATTACHMENTS:
Travel Authorizations
Travel Vouchers with copies of receipts
(Note: TA's and Vouchers must be redacted to remove information protected by the
Privacy Act, including Social Security Numbers, Home Addresses, etc.)
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OTHER EPA DIRECT COSTS
FPN:
INCIDENT NAME:
DESCRIPTION
UNIT
(HOURS,
DAYS)
RATE
COST
TOTAL OTHER EPA COSTS: $_
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TECHNICAL ASSISTANCE CONTRACTOR COSTS (START, REAC, etc.)
FPN:
INCIDENT NAME:
Contractor Name:
TDD#
LABOR COSTS
TRAVEL
DIRECT COSTS
ODCs
TOTAL
TOTAL COSTS: $
This is
/is not
a final contractor cost total for this site.
ATTACHMENTS:
Technical Direction Document and Amendments
Acknowledgment of Completion (AOC)
Contractor Invoices
Contractor Cost Documentation Report
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CLEANUP CONTRACTOR COSTS (ERRS, BOA)
FPN: INCIDENT NAME:
Contractor Name.
Contract Number
TOTAL CLEANUP CONTRACTOR COSTS
ATTACHMENTS:
Authorization to Proceed
Daily Cost Summaries
Certified Contractor Invoices
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OTHER GOVERNMENT AGENCY COSTS
FPN: INCIDENT NAME:
Agency Name Activity Description Reimbursable Costs Non-Reimbursable Costs
TOTAL OTHER GOVERNMENT AGENCY COSTS: $
ATTACHMENTS:
Interagency Agreement (LAG)
Pollution Removal Funding Authorization (PRFA)
Government Agency Cost Summary
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