United States
Environmental Protection
Agency
Off tee of
Solid Waste and
Emergency Response
EPA
DIRECTIVE NUMBER: 9200.3-u-ia
~["|~n E' Documenting the Estimated Value of PRP Work
to be Performed
APPROVAL DATE: April n, 1994
EFFECTIVE DATE: April u' 1994
ORIGINATING OFFICE: OWPE
[U FINAL
D DRAFT
LEVEL OF DRAFT
n A — Signed by AA or DAA
Q] B — Signed by Office Director
CD C — Review & Comment
REFERENCE (other documents):
OSWER Directive 9200.3-14 "Superfund Program
-Implementation (SCAP) Manual for FY-1994
OSWER OSWER OSWER
DIRECTIVE DIRECTIVE
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United States Environmental Protection Agency
Washington, D.C. 20460
OSWER Directive Initiation Request
1. Directive Number
9200.3-14-La
2. Originator Information
Mame of Contact Person
Scott Blair
Mail Code
5202G
Office
OWPE/CED
Telephone Code
(703) 603-8955
3. Title
Documenting the Estimated Value of PRP Work to be Performed
4. Summary of Directive (include brief statement of purpose)
This directive discusses requirements for documenting the estimaed value of
potential responsibile party (PRP) response work under a Superfund enforcement
settlement reported in CERCLIS/WasteLAN. It also provides guidance on how the
value of PRP response work is documented in CERLCLIS.
5. Keywords PRPf CERCLIS, WasteLAN
6a. Does This Directive Supersede Previous Directive(s)?
b. Does It Supplement Previous Directive(s)?
9200.3-14-1 "Superfund Program Implemei
No
No
ion
Yes What directive (number, title)
Yes What directive (number, title)
C5CKP) Manual for FY -1994
7. Draft Level
•r.
A r Signed by AA/DAA
B - Signed by Office Director
G - For Review & Comment
D - In Development
8. Document to be distributed to States by Headquarters?
Yes
No
This Request Meets OSWER Directives System Format Standards
9. Signature of Lead Office Directives Coordinator
10. Name and Title of Approving Official
Date
"f 1 1 L/ /"} U
Date
EPA Form 1315-17 (Rev. 5-87) Previous editions are obsolete.
OSWER OSWER OSWER OSWER
DIRECTIVE DIRECTIVE DIRECTIVE
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.
<£
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
? WASHINGTON, D.C. 20460
Supplement to:
OSWER Directive #9200. 3-14-la
APR I I 1994
OFFICE OF
SOLID WASTE AND EMERGENCY
MEMORANDUM RESPONSE
SUBJECT: Documenting the Estimated Value of J?RP Work to Be
Performed
FROM: Bruce M. Diamond, Director.
Office of Waste Programs Enforcement, OWPE
TO: Information Management Coordinators (IMCs), Regions I-X
I. PURPOSE
The purpose of this memorandum is to supplement OSWER
Directive #9200.3-14-1, Superfund Program Implementation (SCAP)
Manual for FY-1994, to include requirements for documenting the
estimated value of potential responsible party (PRP) response
work under a Superfund enforcement settlement reported in
CERCLIS/WasteLAN (Comprehensive Environmental Response,
Compensation System, and Liability Information/Waste Local Area
Network). This documentation should show the source for
estimating the value of response work to be performed by the
PRP. It is the intention of this supplement to provide guidance
on how the value of PRP response work is documented in CERCLIS.
It is also the purpose of this amendment is to respond to
concerns raised by the Office of Inspector General (OIG) in their
review of Superfund enforcement information in the fiscal year
1993 Chief Financial Officer's (CFO) Report.
II. BACKGROUND
The estimated value of PRP work to be conducted under
enforcement settlements was initially perceived in the program,
by Headquarters and the Regions, as being of less than critical
importance. This perception was due to factors such as: poor
and incomplete data, emphasis placed on event starts and
completions as important indicators of program accomplishment,
and in part due to the low rate of PRP participation in the pre-
SARA days of the program. Over time, with the success of the
"Enforcement First" initiative and enforcement actions,
Headquarters increasingly requested that the Regions enter in
CERCLIS/WasteLAN the "estimated dollar value of potential
responsible party (PRP) work to be performed" under CERCLA/SARA
settlements. The rationale for these Headquarters requests was
that it was felt that the estimated value of PRP work to be
performed best portrayed the success of the Superfund Enforcement
Recycled/Recyclable
Printed with Soy/Canola Ink on paper that
contains at least 50% recycled fiber
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Program. As data quality improved, the number of settlements
increased, and the quantitative value of settlements became
larger; increasing importance was attached to the estimated
response dollar values. Additionally, it was discovered that
the common denominator of dollars (translated into Trust Fund
dollars saved), more clearly communicated Superfund Enforcement
Program success to external audiences-such as: the Office of
Management and Budget (OMB), Congress, the General Accounting
Office (GAO), interest groups, and the general public.
III. DISCUSSION
In fiscal year 1992, it was decided by senior Agency
management and OMB, that the Agency trust fund programs would
serve as pilots for reporting under the CFO Act. The estimated
PRP response dollar values of enforcement settlements were used
for program accomplishment reporting in the fiscal year 1992 and
1993 CFO Reports. These amounts are also used for reporting in
the Section 301 (h) Superfund Annual Report to Congress (SARC).
Both of these reports are audited by the EPA Office of Inspector
General (OIG). The Chief Financial Officer's Act [Public Law
101-576] states in Section 304 that:
"(a) In General. - Section 3521 of title 31, United States
v Code, is amended by adding at the end the following new
subsections:
' (e) Each financial statement prepared under section 3515 by
an agency shall be audited in accordance with applicable
generally accepted government auditing standards."
Based on our conversations with the EPA Office of Inspector
General, these "applicable generally accepted government auditing
standards" are those specified in the GAO 1983 "Standards for
Internal Controls in the Federal Government." The standards
state:
"All transactions and other significant events are to be
clearly documented, and the documentation is to be readily
available for examination. This standard requires written
evidence of ... (2) all pertinent aspects of transactions
and other significant events of an agency. Also, the
documentation must be available as well as easily accessible
for examination."
In an examination of fiscal year 1993 settlement data used
for reporting in the CFO, the OIG conducted audits in Regions 1,
5, 6, and 7 of the estimated PRP response values associated with
enforcement settlements, as reported in CERCLIS. In addition to
identifying some data quality problems, the OIG has concluded
that in many cases the "estimate of PRP work to be performed," is
poorly documented (per GAO and OIG standards) by the Regions, and
that national guidelines are necessary.
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IV. DOCUMENTATION
The reporting of "the estimated value of the PRP response
work to be performed" under an EPA enforcement action, is an
important program indicator of progress. Since CERCLIS
constitutes the official Superfund reporting system, it is
essential that Regions document the source of any dollar
estimates of the cost of PRP response actions in the system. The
Regions should attempt to conform with the GAO and OIG
documentation standards, and establish procedures to make certain
that the source of any estimate of the value of PRP work to be
performed is well documented. To assure the quality of the
documentation for estimated PRP response work performed under
enforcement settlements (see pages C-90, C-91, C-92) entered in
the CERCLIS system, we are issuing the following amendment to the
FY-94 Superfund Program Implementation Manual (OSWER #9200.3-14-
la) .
Enforcement settlements are defined as administrative
(unilateral and on consent) or judicial actions taken under
Section 104, §106, §106/107, §122, and §122(g). The specific
enforcement settlements to be covered under this supplement are:
judicial consent decrees referred to the Department of Justice
(DOJ), judgements by the court, EPA administrative orders on
consent (AOC), a unilateral administrative orders (UAO), and
Federal Facility Inter-Agency Agreements (IAG). Beginning with
fiscal year 1994 data, Regions should take the following steps to
ensure the correct documentation in CERCLIS/WasteLAN for
estimates of the cost of PRP work to be performed:
1. When entering the dollar value for "estimated PRP work
to be performed" associated with enforcement
settlements (CD, UAO, AOC, & IAG) in CERCLIS/WasteLAN,
Regional personnel should enter into WastLAN/CERCLIS
the date the information was received and/or adjusted,
and the information source. The date should be in the
C2906 financial data element field, and the source
information in the comment field (when practical).
Regions should, when possible, also include document-
ation in the site/case file.
2. The sources for the dollar value for "estimated PRP
work to be performed" should be: Records of Decision
(ROD), Ten Point Analyses, Action Memoranda, Removal
Decision Documents, Engineering Evaluation/Cost
Analyses (EE/CA), documented cost estimation models,
Remedial Design or Remedial Action estimates, or
documented discussions with the PRPs. In the event of
the absence of the aforementioned sources, or a lack of
confidence in the same, Agency personnel should use
their best professional judgement. The source for each
estimate should be entered in the comment field for
each settlement (if more than 20 spaces required - use
the activity comment field). Source information should
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be documented and updated each time the estimate is
adjusted in CERCLIS.
3. When estimates are based on Agency personnel's best
professional judgement, or other unwritten sources,
documentation should also be maintained in the
site/case file.
4. Examples:
Where C2903 = R, and C2907 = $ ,
C2906 = 00/00/0000, Comment field: "Source, EE/CA."
Where C2903 = R, and C2907 = $ ,
C2906 = 00/00/0000, Comment field: "Source, ROD."
Where C2903 = R, and C2907 = $ ,
C2906 = 00/00/0000, Comment field: "Source, 10-Point.
Where C2903 = R, and C2907 = $ ,
C2906 = 00/00/0000, Comment field: "Source, RD
package."
Where C2903 = R, and C2907 = $ ,
C2906 = 00/00/0000, Comment field: "Source, PRP
teleconference."
5. While this guidance will only apply to estimates
in fiscal year 1994 and later, Regions are encouraged
to add this source information, if readily available,
for earlier enforcement settlements.
V. FURTHER INFORMATION
We ask that Regional IMCs please ensure that the information
included in this memorandum is conveyed to all the appropriate
personnel in their respective Region. For further information
concerning this supplemental guidance, please contact Scott
Blair, Regional Planning Section, at 703-603-8955.
Attachment
cc: Henry Longest
Linda Boornazian
Tom Sheckells
Tai-ming Chang
Dave Evans
Scott Blair
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