&EPA
            United States
            Environmental Protection
            Agency
          Office of
          Solid Waste and
          Emergency Response
DIRECTIVE NUMBER:   9540.00^

TITLE: GUIDANCE ON RCRA:-STATE PROGRAM REVERSION
          W/25/85
             APPROVAL DATE

             EFFECTIVE DATE

             ORIGINATING

             0 FINAL

             D DRAFT

              STATUS:
             R EF E R E N C £ (other documents) :
 OS WER     OS WER     OS WER
fE   DIRECTIVE   DIRECTIVE   Di

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DOCUMENT'
NUMBER  ' '-S^O. 00--3                  DOCUMENT  DATE > 06,

'TITLE  :•• GUIDANCE ON  RCRA STATE  PROGRAM-REVERSION
ORIGINATOR  >  MARTY MADISON
BRANCH

APPROVED BY

APPROVAL DATE

DATE ENTERED
                   PSPD/SPB/IS

                   JACK MC6RAW

                   06/ 25/35

                   06 /
OFFICE    > DSW

PHONE NO > 382-2229

TITLE     > ACTING ASSIST  ADMIM

STATUS  (A/B/C/D)  >      FINAL APPROVAL

EFFECTIVE DATE    >   06/25/35
b'UPERC-EDED?  >  F  SUPERCEDIN6 NUMBER >
SUPPLEMENT?  >  F  SUPPLEMENT  NUMBER :-

KEY  >  TRANSITION / STATE  AUTHORIZATION
DOCUMENT TYPE  >  GUIDANCE

RELATED FR     >  N/A

KiTIS  NUMBER    ',-  N/A

1'SW NUMBER     >  N/A

OTHER AVAILABLE  >  N/A
                                       DOCKET NUMBER

                                       FR DATE

                                       GPO NUMBER

                                       CIRCULATION
                  N/A

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SUMMARY
      Under Section 3006(5;  of RCRA,  EF'A grants
t1 n a I  authorization to State  hazardous  waste
-••'ograms that:   i i ; are  scLn^aienr  to  the Federa
Hazardous waste  Program;  ',2'°  ars? consistent w i tn
the  Federal program and  other Etafce  programs ^~i
nave  received  -Final authorisation:  anc  (3)  provi
•adeauate enforcement.
      o':-=c 11 on 31.'1'..'6 ( c ;  of  RCRA,  as revised bv the
19S4  H8wA.  provides that  interim authorisation
expires on  Januarv 31,  i'^86.   Therefore,  it a .
State  which has  received  interim authorization  '
does  not receive final  authorization bv January
31,  19S6.  the  program Lgill  revert to' the Federal
q o v e r n 
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          UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                      WASHINGTON. O.C. 20460
                            2 5 1986
                                                 .vASTE
 MEMORANDUM

 SUBJECT:  Guidance on  RCRA State  Program  Reversion

 FROM:     Jack W. McGraw  OAiuyrs ^I^TcLWiO
          Acting Assistant Administrator

 TO:       Regional Administrators
          Regions I-X


     Attached for your use is  the  Guidance on Reversion of
 State RCRA Programs.  As you know,  last year we produced a
 draft of this document which was  issued to the Regions and
 States and reviewed by a task  force.  The Regions and Head-
 quarters were well represented at  the task force meeting;
 Sue Moreland of ASTSWMO attended on behalf of the States.
 The Guidance was shelved because of the one-year extension
 for interim authorization provided by the Amendments.
 However, as the new expiration date (Jan. 31, 1986)  is
 approaching, we resumed work on the Guidance.  This  final
 document has been revised to reflect the  comments of the
 task force received last year and  the requirements of the
 Hazardous and Solid waste Amendments of 1984.

     Among the issues addressed in the Guidance are  reporting,
 financial responsibility, permitting and enforcement.  The docu-
ment also contains a checklist of  RCRA activities to be used  in
dividing responsibilities between  EPA and the States, a model
 Memorandum of Understanding, and a sample form letter to the'
 regulated community.

     On March 22 I sent you a memo which discussed the
 reversion of State programs and suggested that you
consider how to provide for a smooth transfer of program
 responsibility to EPA from those States not expected to
 receive final authorization by January 31, 1986.  Now
 that the guidance document is available for your use, I
am asking you to develop transition plans which take
 into account the full realm of Federal activities, and
specify the distribution of responsibilities between EPA
and the States.   The FY 1986 grant work programs must
 reflect the transition of program responsibilities to

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EPA and provide for the active and fuli involvement of the
States to the greatest extent possible.  The strategies need
not be provided to Headquarters as a formal document but
should be negotiated by the end of August  in order to be
useful in developing the grant work plans.

     If you have any questions regarding this document,
please call Truett DeGeare, Chief, State Programs Branch,
at FTS 332-2210.

Attachment

cc:  Hazardous waste Division Directors,. Regions I-X
     Hazardous Waste Branch Chiefs, Regions I-X
     Hazardous Waste RCRA Attorneys, Regions I-.X

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GUIDANCE ON REVERSION OF




  STATE RCRA PROGRAMS
       June, 1985

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           Guidance on Reversion of State Programs






Introduction



I.   Negotiating Reversion Agreements



II.  Reversion Issues



III. Announcing Reversions



Attachments:



     A - Checklist of Activities



     B - Model Memorandum of Understanding



     C - Form Letter to Regulated Community

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 Introduction

      Section 3006 of the Resource Conservation and Recovery
.Act (-RCRA)  allows the Environmental Protection Agency (EPA)
 to authorize States to operate State hazardous waste manage-
 ment programs in lieu of the Federal program.   Under §3006(c)
 of RCRA, the Agency has the authority to grant interim
 authorization to. State. programs that are "substantially
 equivalent" to the Federal program.  Under §3006(b)  of RCRA,
 EPA grants  final authorization to State hazardous waste pro-
 grams tha.t: (1)  are equivalent to the Federal  hazardous waste
 program; (2)  are consistent with- the Federal program and other
 State programs which have received final authorization; and
 (3)  provide adequate enforcement.

      Section 3006(c) of RCRA (as revised by the Hazardous and
 Solid Waste Amendments of 1984) provides that  interim authori-
 zation expires on January 31,  1986.  Therefore, if a State
 which has received interim authorization does  not receive final
 authorization by January 31, 1986, the program will  revert to
 the  Federal government until such time as the  State  obtains
 final authorization.  EPA may  not extend this  deadline
 administratively.

;.v    Section  3006(g)(.2)  of HSWA .states that interim  authorization
.may  be obtained  to carry out requirements of HSWA for which the
 State's existing program contains (or has been amended to include!
 a  requirement .substantially equivalent to the  "new"  Federal
 requirement.   Th.e "new"  interim authorization  may have a
 different expiration date (to  be established by rule) than the
 "old"  interim authorization.   However, if a State
 having "old"  interim authorization has obtained "new" interim
 authorization for some parts of the Federal program, and the
 State's program  reverts on January 31, 1986, the entire program
 will revert.

      This document covers the  issues to be considered when
 planning for  a smooth transition of authority  from an interim
 authorized  State to EPA.   Various documents will be  used to
 divide responsibilities  between the Federal government and the
 State  once  a  State program has reverted.   Development or modifi-
 cation of these  documents is discussed.   A model form letter  is
 attached which should be used  to notify the regulated community
 of the impending changes due to reversion.

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-' I ..•   Negot ia't ing^  Reversion Agreements

   -  A State seeking authorization nay enter  into an agreenert  •
with.EPA  to participate  in implementing the Federal program.
This agreement  need not  be in  the form of a separate document,
but may be defined by the documents conventionally used by the
Region and-State  in their grant  negotiations.  This includes the
grant work program, the  EPA-State Enforcement Agreement and the
Memorandum of Understanding.   These agreements may be combined
with agreements under S3006(c)(3> for State participation
 in implementing HSWA.

A.   The  Cooperative Agreement

     In negotiating the  FY 1986  S3011 Cooperative Agreements
(grants)  with the States, the  Regions will need  to address the
activities which  must he covered under the Federal program and
how to divide responsibilities  for administering and enforcing
the RCPA  program.during  the period when a State's program has
reverted  to EPA.  A checklist  provided in Attachment A lists
activities which  must be covered under the Federal program.
These activiti.es  include the HSWA program as  well as the pre-
HSWA program.   Mote that some  activities may  only be undertaken
by the Federal government; e.g., the actual issuance of a
RCRA permit,  while the  Regions  and States may adapt this
model to  accommodate the particular circumstances in each
State,. activities identified as  EPA-only must be reserved
for .EPA.

     the  Regions  must determine  that States have the requisite
legal authority to carry out the tasks identified in the
Cooperative Agreement to implement the Federal program.
In the event that a State does not have sufficient authority
to conduct compliance monitoring activities (enter, inspect,
collect samples,  etc.),  the Regional Administrator may,
pursuant  to Delegation 8-8 and  S3007(a) of RCRA, designate
State personnel as representatives of EPA for the purpose of'
performing inspections.  The designation must be in writing
and shall name  the State inspectors identified as EPA's repre-
sentatives and specify the duties they will carry out for the
Agency.

B.   Memorandum of Understanding

     The  Memorandum of Understanding (MOU) sets  forth the
relevant  substantive and procedural responsibilities of the
parties, which are not included  in the Annual  Work Program.
When reversion occurs, the authorities under  which the State
operated  during interim  authorization are withdrawn.  A
Memorandum of Understanding may  be used to identify the
basic responsibilities of the  Federal government and the
State to  the extent that they  are not in the  Annual Work
Plan.  Attachment B is a model MOU.

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 C.    EPA-State  Enforcement Agreements

      The State-Federal Enforcement Agreements cover the
 following aspects of EPA's compliance and enforcement program:
 oversight criteria and measures; oversight procedures and
 protocols; criteria for direct  EPA enforcement; procedures for
 advance notification and consultation; and reporting require-
 ments.  The agreement need not  be a separate document as long
 as  the areas described above are addressed in the Cooperative
 Agreement or the Memorandum of  Understanding.  Enforcement
 Agreements, whether separate documents or incorporated into
 Cooperative Agreements or Memoranda "of Understanding, should.
 be  modified to  reflect the State-Federal division of responsi-
 bilities created by reversion of the State program to EPA.

 II.   Reversion  Issues

      Below are  a number of issues to consider in developing the
 various documents which support or are part of your Cooperative
 Agreement.

 A.    Short Term vs. Long Term Reversions

      In planning for reversion, a Region must consider whether a
 State's reversion will be short or long term in order to know the
 extent to which the Region-must be prepared to administer various
 aspects of the  RCRA program.

     While the authority to administer the program will revert to
 EPA for all interim authorized  States which do not receive final
 authorization by the January 31, 1986, deadline, in cases where
 the State is expected to regain authorization quickly it may
 not be practical or possible to make all the operating changes
 necessary to implement the reversion of authority.  It is, there-
 fore, appropriate to distinguish between such States and States
 whose reversions will be 'of longer duration.   We have determined
 that short term reversions are  those that will be 90 days or
 less, i.e., those States that will obtain final authorization by
April 30,  1986.  This distinction will be made only as a necessary
administrative tool for EPA and the State; EPA still retains
legal responsibility for the RCRA program until the State obtains
 final authorization.

    For short-term reversions where the Region has received and
reviewed a State's official application for final authorization,
 the Memorandum of Agreement, which is a part of the official
application, may be modified to cover temporarily the basic
 responsibilities of EPA and the State during the time of reversion,
 In such cases,  the Region must be optimistic about the State's
chances for being authorized within 90 days of reversion.  It is
preferred that a tentative determination on the State's program
already have been made.

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                            - 4 -
     In ordering priorities, the Regions should place a lower
priority on making operating changes in States whose reversions
are expected -to be short term than on those expected to oe long
term.  Some of the changes which may be difficult to make during
a short period of reversion are financial instruments, the scope
and frequency of handler reporting and the responsibility for
issuance of permits.

     If a short term reversion is anticipated early enough, the
Cooperative Agreement can be planned such that it deals with the
short term reversion.  Appropriate terms, conditions and tasks
can be incorporated into the grant which cover the time during
which the State program will have reverted, but which will be
inoperative if the reversion does not occur.

8.   Reporting

     The regulations require that reports be sent to EPA once
the State program has reverted.  It is administratively
cumbersome and very confusing, however, for the regulated
community to send reports to EPA in States that are expected
to revert for less than 90 days.  This is particularly true
where States will be reviewing the reports under a Cooperative
Agreement.  Therefore, -=:PA should allow and encourage the
reports to continue going directly to those States even after
reversion.  Hazardous waste handlers in States where programs
revert for more than 90 days will be required to send the reports
to EPA.  In those.States, EPA may take enforcement action against
facilities not sending reports in at all or sending them only
to the State.  Letters will be sent by the Region and/or State
explaining this to the. regulated community.  (See Attachment.E).

C.   Financial Responsibility

     Section 265.149 allows owners or operators to use State-
required financial mechanisms in lieu of the Federal financial
mechanisms required by §§265,143, .145, and .147, if the Regional
Administrator has determined that the State and Federal mechanisms
are equivalent.  The Regional Administrator will review the
State's financial mechanisms and make a determination of equiva-
lence based principally on two criteria: 1) certainty of availa-
bility of funds/ and 2) amount of funds that will be made available.
The Regional Administrator may also consider "other factors" as
he deems appropriate.

     EPA will also accept non-Federal financial mechanisms (i.e.,
mechanisms other than those specified in the Subpart H require-
ments) in lieu of Federal mechanisms as long as the Regional
Administrator has determined that the particular State mechanism
is equivalent to the Federal mechanisms.  EPA retains the right,
however, to be selective in accepting a State's financial mechanism.
In addition, EPA may later withdraw approval of a. State-required
financial mechanism on a case-by-case basis.

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                             -  5  -
      When  accepting  State-required  mechanisms,  EPA  will  attempt
 to  minimize  the  owner's  or  operator's  involvement.   Rather  than
 having  each  owner  or operator  make  an ' individual  request under
 §265.149,  EPA  will allow the State,  on  behalf of  its  owners and
 operators, to  request that  State-required  mechanisms  be  used  to
 meet  the Federal requirements.   Where  EPA  grants  such requests,
 it  will notify owners and operators, and will allow them to
 change  to  a  Federally required financial instrument if they
 so  desire.

      In situations where EPA has  accepted  a State's financial
 mechanism  under  §265.149 (i.e.,  where a State has received
 interim authorization for the  financial responsibility require-
 ments or where EPA has made a  finding of equivalence  outside
 of  the  authorization process)  and where the State is  the named
 beneficiary  on the financial instrument, EPA will allowthe
 State to remain  as the named beneficiary when reversion  occurs.
 EPA Regions  must specify in the  Memorandum of Understanding that
 EPA can direct the State to draw on  the financial instrument  as
 necessary  to provide for adequate closure  and post-closure  care.


     All owners or operators in  States  that do  not  have  financial
 requirements and those owners  or operators who  use  financial
 instruments  which are not equivalent to the Federal mechanisms
 will be immediately  subject to  the  Federal requirements  as  of
 the date of  reversion.   Problems may arise because  some  States
 are in  the process of promulgating  their own financial require-
 ments.  States whose financial  requirements do  not  currently  meet
 the equivalency criteria may still enact acceptable requirements
 before  reversion occurs.  EPA will  need to work with  the State
 agency-to avoid conflict in implementing two sets of  requirements,
 This will require advance planning and consultation with States
 whose programs are expected to revert.

 D.   Permitting

     Attachment A lists  which permitting activities  the  States
may continue to perform  and which EPA must handle.  Where the
State had issued RCRA permits, those permits will remain in
effect as RCRA permits after the State program  reverts.  (See
preamble to  the May  19,  1980, Federal Register, 45  FR 33395.)
 In addition,  other actions taken by an authorized State  before
reversion which are  in compliance with the Federal  regulations
also remain  in effect.   If, prior to reversion, an  authorized
State requested a permit application, that request  is valid for
purposes of RCRA, and EPA can take over without having to call
 in the application again.  A State-issued  draft permit is valid
as well, if  the State followed procedures  at least  equivalent
to the Federal procedures in 40 CFR Part 124, and need not be
reissued by  EPA.

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                            - 6 -

     EPA will  issue permits in States which have reverted,
whether for short or long term reversion.  The Region should
work jointly with the State to ensure-that the State and EPA
will not have  to duplicate work unnecessarily.

E.   Enforcement

     Reversion of the RCRA program does not affect the status of
State requirements under State law.  Thus, EPA expects States to
continue to enforce their own programs.  For the most part, State
and Federal requirements will be' similar or equivalent, and EPA
will not initiate Federal enforcement actions for these equivalent
requirements where a State is responding to violations of State
law with timely and appropriate enforcement'act ions.  Therefore,
State-EPA Enforcement Agreements may be amended to include pro-
visions under which EPA will generally defer to'the State.
However, EPA does not waive its right to enforce the Federal
requirements.  Where a State's enforcement actions are not timely
or appropriate, or a Federal requirement is not found in State
law, EPA will exercise the full range of its enforcement authori-
ties.  After reversion, any violations cited in State inspection
reports must cite the Federal regulations for EPA to take
enforcement action.  Therefore, inspection reports and warning
letters should cite both the Federal and State regulations which
have been violated.

III. Announcing Reversions

     EPA Headquarters will issue two Federal Register notices.
The first will appear in September 1985, and will be a notice of
possible reversion.  This notice will explain reversion and will
list all States which have interim authorization and have not yet
received final authorization.  The purpose of this notice is to
alert hazardous waste handlers to the possibility that they may
soon be subject to two sets of hazardous waste regulations, State
and Federal.  Since handlers in States whose programs revert will
become immediately subject to the Federal regulations on January 31,
they will need some time to find out what the new requirements will
be.  The notice will direct them to the Federal regulations and,
presumably, will allow them adequate time to obtain a copy of the
regulations and start to become familiar with them.

     The second notice will appear on or about January 31, 1986.
This notice will announce the actual reversion of the RCRA program
for those interim authorized States which did not receive final
authorization by January 31.  The notice will identify those States.

     Attachment C is a form letter which the Regions may use
to notify all handlers in States whose programs will be reverting.
These letters should be sent out before January 1, 1986.  The

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letters should be sent to handlers in all States where the program
is expected to revert, regardless of the expected length oe'tn-
reversion.   If a State's orogram does not revert which was exoectec
to,  or vice versa,  an additional letter may be necessary.

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                                                       ATTACHMENT A
                                               CHECKLIST OF RCRA ACTIVITIES
    Federal Program
      Requ irement
 PROGRAM ACTIVITy
Activities Reserved
      for EPA
Activities Subject to
        a c
 I.EGAL .AUTHORJJl'y
Federal    State
Citation   Citation
COM:
I. Compliance Monitoring

A. Sampling and analysis



B. Non-notitier follow-up
 Provide guidance on        Collect samples and con-
 procedures for collecting  duct analysis in accor-
 and analyzing samples

 Establish procedures and
 priorities for follow-up
 activities and develop
 list of non-not i f iers
   Generator Inspections
   and Report Reviews

   1. Inspect for compliance
      with manifest require-
      ments

   2. Inspect outgoing ship-
      ments for compliance
      with DOT standards

   3. Inspect storage con-
      tainers for DOT
      packaging and proper
      lataelling

   4. Inspect for retention
      of documents
 Establish procedures
 dance with RPA guidance

 Assist EPA in developing
 list; conduct investi-
 gation
                            All
                            All
                            All
                            All
                           262.20-.23
                           262.30-.33
                           262.34
                           262.40-.42

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    Federal Program
      Requirement
__._ACTI VITY_
Activities  Reserved
       for EPA
Activities Subject to
_Stat e_Pajrt ic ipat ion
 Lt'GAL AJJTHpRITY
Federal    State     COM I1
Citation   Citation
   5. Receive and review
      biennial reports
      from generators who
      ship waste-oft site

   6. Receive and review
      exception reports
      Request additional
      reports
      Receive and review
      reports of inter-
      national shipments
  Receive  reports  and
  screen  tor confiden-
  tiality
  Receive  reports  and
  screen  tor  confiden-
  tiality

  Request  and receive
  reports  and screen for
  confidentiality

  Receive  reports  and
  screen  tor  confiden-
  tiality
 Review reports
261.41
   9. Notify State Depart-  All
      ment of undelivered
      shipments

D. Transporter Inspections  Establish procedures
   and Manifest Reviews

   1. Inspect transfer
      facilities

   2. Inspect for compliance
      with manifest require-
      ments
 Review reports
 Review reports
 Review reports
                             All
                             All
262.42
262.43
262.50
                           263. 12
                           26 J.20-21

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    Federal Program
      Requirement	
 PROGRAM ACTIVITY  _
Activities Reserved
      for EPA
Activities Subject to
       Part i(Ma t ion
-      AtrniGKITy
 Fede'raY "  ""state
 Citation    Citation
COMf
   3. Inspect for retention
      of documents

   4. Inspect for compliance
      with DOT regulations

E. Interim Status Facility  Establish procedures
   Inspections* and Record
   Reviews

   1. Inspect for compliance
      with General Facility
      Standards

   2. Inspect for compliance
      with Preparedness and
      Prevention standards
      including adequacy of
      Contingency Plan

   3. Inspect for compliance
      with manifest system

   4. Inspect for compliance
      with recordkeeping and
      records retention
      requ irements
                            All
                            All
                            All
                            All
                            All
                            All
                           263.22


                           263. 10
                           265. I 1-17
                           265
                           Subparts C
                           and D
                           265.71-.72
                           and .76

                           265.7J-.74
Mnspections of facilities owned or operated  by  a  State,  local  or  Federal government
must be conducted by t'PA  (RCRA  S$3007(c)  and  (d)).   States  may  inspect  those
facilities, however, State inspections do not satisfy  the statutory  requirement.

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                                                      - 4  -
  Federal Program
    Requirement
                          PROGRAM ACTIVIT*
Activities Reserved
      tor EPA
                                                   Activities  Subject  to
                                                   -JLlLfLtfL Part i c ij> a t io_n
__L.KGAL  AUTHOR1 TY
 Federal     State     COM
 Citation    Citation
 5.  Receive and review
    biennial reports
 Receive reports
                                                     Review  reports
 265.75
6. Receive and review    Receive reports
   manifest discrepancy
   and unmanifested
   waste reports
 7.  Receive and review
    reports of releases,
    fires,  and explosions
 Receive reports
 8.  Inspect for compli-
    ance with ground-water
    monitoring requirements
                                                     Review  reports
                                                     and  follow-up
                                                    Review  reports
                            All
                                                       265.12-. 76
 265.56  and  .77
                                                                               265.yu-.94
 9.  Review ground-
    water waivers

10.  Review outlines of
    alternate ground-
    water monitoring
    plans

11.  Receive and process
    notices that facil-
    ity is affecting
    ground water
 Make decision on
 adequacy

 Make decision on
 adequacy
 Receive notices
                                                    Review and make
                                                    recommendat ions

                                                    Review arid make
                                                    recommendat ions
                                                     Follow-up
265.90
265.93
265.93

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                                                          - 5 -
  Federal Program
    Requirement
___ ACTIVIT¥ _
Activities  Reserved
       for EPA
Activities Subject to
 State Part i<:ip_at i_qn
 ..LEGAL .AUTHOR 1 TV
FedeYa 1State	COMMK
Citation   Citation
12. Review alternate
    ground-water
    monitor reports

13. Receive and review
    ground-water moni-
    tor reports

14. Inspect installation
    of double liners

15. Receive and process
    closure plans


16. Inspect to assure
    that facility is
    closing in accor-
    dance with approved
    plan

17. Receive closure
    certifications

18. Inspect to assure
    closure has been
    accomplished in
    accordance with
    the plan

19. Receive and process
    post-closure plans
 Make decision  on
 adequacy
  Receive  reports
  Provide  guidance
  Receive  plans,  issue
  notice,  hold hearing
  and  make decision
   All
  Receive plans,  issue
  notice, hold hearing
  and make decision
  Review and make
  recommendat ions
  Review and make
  recommendat ions
  Perform inspection
  Review plans and
  make recommendations
                              All
265.90 and
.93
265.94
HCHA
$3015

265. I 12
                           265. I I I and
                           . 113-. 1 14
                           265. I 15
                              All
 Review plans and make
 recommendat ions
265. I 18

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                                                     - 6 -
Federal Program
  Requirement
 PROGRAM ACTIVITy
Activities Reserved
      tor £PA
                                                    Activities  Subject  to
                                                    __St_ate  Par^i_cipation
_JjF.GAL AUTHOR]TV
Federal '"  State     COMMh
Citation   Citation
                                                   All
                                                       265.I 17
                                                       and  .119-
                                                       . 120
20. Inspect to assure
    that facility is
    conducting post-
    closure care in
    accordance with
    approved plan

21. Review closure cost
    estimates

22. Review post-closure
    cost estimates

23. Review financial
    assurance instrument
    for closure and
    post-closure*

24. Review sudden and
    non-sudden insurance
    policies*

25. Receive and follow
    up notices of cancel-
    lation, non-renewal
    and bankruptcy*

26. Review financial
    instrument for
    corrective action

*If State financial assurance regulations have been approved pursuant to §265.149, State
may perform all these activities.
                        Make decision on ade-
                        quacy

                        Make decision on ade-
                        quacy

                        Receive mechanisms and
                        make decisions on ade-
                        quacy
                        Receive policies and
                        make decision on ado-
                        quacy

                        Receive notices
                            Review estimates and
                            make recommendations

                            Review estimates and
                            make recommendations

                            Review mechanisms and
                            make recommendat ions
                            Review policies and
                            make recommendations
                            Follow up and make
                            recommendat ions
265.142
265.144
265. 143
and  .145
265. 147
265.143,
.145 arid
. 14U

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                                                     - 7 -
    Federal Program
      Requirement	
	_AC'r^n/IT Y_
 Activities  Reserved
       for EPA
Activities Subject to
                         >
 LEGAL AUTHORITY         \
Federal    State    COMMti
Citation   Citation      !
  27. Inspect facilities
      for compliance with
      standards for:

      0 containers
      0 tanks
      0 surface impoundments
      0 waste piles
      0 land treatment
      0 landfills
      0 incinerators
      0 thermal treatment
      0 chemical, physical
        and biological
        treatment
P. Permitted Facility
   Inspections and
   Record Reviews

   1. Inspect to assure
      that facility has
      been constructed or
      modified in accor-
      dance with approved
      plans specified by
      permi t.

   2. Inspect for com-
      pliance with require-
      ments specified in
      pe rm i t, i nc1ud i ng
      compliance schedules
  Establish  procedures
                             All
                             All
                             All
                             Al 1
                             All
                             All
                             All
                             All
                             All
                             All
                             All
                           Part 265
                           I
                           J
                           K
                           L
                           M
                           N
                           O
                           P
                           0
                           270. 3(J(a)
                           270.30(e)

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                                                           -  8  -
    Federal Program
      Requirement	
    -
Activties Reserved
      tor EPA
          Activities Subject  to
           _Stat_e Parti_cipati_qn
                           _LE_C;AL AUTHOR i TY
                          Federal    State     COMMI.
                          Citation   Citation
   3. Receive and review
      reports and notices
      required by permit

II. Enforcement
 Receive reports
 Establish procedures
 and priorities and
 develop guidance
           Review reports
                          270.30 (J )
A. Identify and classify
   violations

B. Initiate enforcement
   actions
 Make decision
 Initiate action
 make decision
and
           Flag v iolat ions
           recomuiendat ions
                and make
In instances where State
enforcement authorities are
similar to those of the Fed-
eral program and the State
uses those authorities in a
timely and appropriate
manner, EPA may decide that
a particular State action is
sufficient.  Otherwise, the
State may assist EPA by:

0 preparing case reports
0 recommending compliance
  schedules for correction
  of violations
0 assisting and participa-
  ting in negotiations
0 recommending additional
  act ions

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                                                        - y -
    Federal Program
	Requirement	
                            PROGRAM ACT IVT Y
             _
Activities Reserved
      for EPA
                          Activities Subject to
                                 Par tic i
                           I.fcGAL AUTHORITY         i
                          Federal    State    COM Ml-:'
                          Citation   Citation
C. Follow-up enforce-
   ment actions to
   assure compliance

III. Permitting
   (incl. RO&D permits)

A. Interim Status

   1. Receive and
      review Part A
      applicat ions

   2. Mail interim
      status notifi-
      cation or
      notices that
      facility does
      not qualify for
      interim status

   3. Receive and
      process updated
      Part A applica-
      tions and requests
      for changes during
      interim status

   4. Process with-
      drawal requests
      (i.e., t e on i -
      nate interim
      status per Part
      124 procedures)
Set priorities and
schedules
 Establish procedures and
 priorities for permitting
 Receive and screen for
 confidentiality


 All
                            Follow up
                           Review and make recommen- 270.10
                           dat ions                   and  .13
                                                     270.10
 Receive and screen
 conf iderit ia 1 i ty
                   for
Review and make recommen- 270.10
dations                   and .72
 Process withdrawal,
 publish notice, hold
 hearing if necessary,
 make decision
                           Assist RPA  in all activi-
                           t ies

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                                                         -  10  -
    Federal Program
      Requirement
 PROGRAM Acnvrry
Activities Reserved
      for EPA
Activiti-es Subject to
 S t a te Pa rt ic ia tion
 Lb'GAL AUTHOR I'J'V
Federal    State    COMM
Citation   Citation
B. Permit Processing

   1. Prioritize Part
      B requests

   2. Request Part B
      applicat ions.
 Develop procedures and
 prioritize

 Request Part B's
 Recommend priorities      270.10
 Draft request for Part    270.10
 B's based on priorities;
 joint requests may be
 made
   3. Conduct permit
      writer inspec-
      tion/site visit

   4. Receive Part B
      applications

   5. Conduct complete-
      ness review
                            All
 All
 Make decision and send
 NOD
 Review arid make recoin-
 mendat ions
                           270. JO
270. 10
.14-21 and
124. 3
   6. Conduct technical
      review
 Outline parameters for
 rev iew
 Review using KPA para-
 meters, make recommen-
 dation
   7. Review exposure
      information
   8. Request health
      assessment from
      ATSDR
 Outline parameters for
 rev iew
 Make decision and send
 request
 Review using EPA para-
 meters and recommend
 permit conditions

 Make recommendation

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                                                  - 11 -
  Federal Program
    Requirement	
                          PROGRAM ACTIVITY
Activities Reserved
      for EPA
Activities Subject to
 State Participat ion
            __
Federal    State     COMM
Citation   Citation
 9. Set conditions for
    permits on a case-
    by-case basis

10. Prepare draft per-
    mit or intent to
    deny

11. Prepare Statement
    of Basis or Fact
    Sheet
 Make decision
 Prepare document
 Prepare document
 Make recommendations and  270.32
 provide assistance


 Make recommendations and  124.6
 provide assistance
 Make recommendations and  124.7
 provide assistance     '   and 8
12. Prepare administra-
    tive record

13. Public notice for
    draft permit and
    intent to deny
 Compile record
 Prepare notice and
 circulate as required
 Submit documents and
 required information
124.9
 Assist in preparation of  124.10
 notice; if State require-
 ments aire similar to EPA's
 joint public notices may
 be circulated
14.  Receive public
     comments

15.  Hold public hear-
     ing (if nece;;:;ary)
 Receive comments
 Hold hearing
 Review and make recominen- 124.11
 dations

 Assist EPA; if State has  124.12
 similar requirements,
 joint hearings may be
 held

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                                                        - 12 -
  Federal Program
    Requirement
                          PROGRAM
Activities
      for EPA
ACjrryrry	
  Reserved
Activities Subject to
  > ta t e Par ti c
 LEGAL AUTHORITY
Federal    State
Citation   Citation
                                                                 COM MB
16. Review hearing
    records and all
    public comments
    and determine if
    substantial new
    issues are raised

17. If substantial
    issues are found,
    take one of the
    following actions:

    0  prepare a new
       draft permit;
    0  prepare a revised
       statement of ba-
       sis or fact sheet;
       or
    0  reopen or extend
       public comment
       period.

18. Prepare and issue
    final permit or
    final denial of
    pe rm i t

19. Issue a response
    to comments
 Make determination
 Make decision; reopen
 or extend comment
 period if that is
 decision
 Issue permit or denial
 EPA issues formal
 response
                   Review records, make rec- 124.11
                   ommendat ions
                   Assist in preparation;
                   make recommendations
                   Assist EPA in prepara-
                   tion, make recommenda-
                   tions on substance on
                   permit

                   Assist in drafting the
                   response
                               124.Ib
                               124.17

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                                                         - 13 -
  Federal Program
    Requirement	
                          PROGRAM ACTIVITY
Activities Reserved
      tor EPA
Activities Subject to
    t.e__Pa£tJ_c i_p_at i_on
     L _AU.T!1P.K. \ Ty.
Federal    sYate    COMMl
Citation   Citation
20. Submit final per-
    mit and relevant
    information to the
    administrative
    records

21. Take actions as a
    result of appeals
    (§124.19)

22. Additional Activities

    a. Changes or modi-
       fications in
       permits

    b. Permit exten-
       sions

    c. Transfer of
       permits

    d. Issue emergency
       permits

    e. Continuation of
       permits expir-
       ing

    f. Terminate per-  .
       mit
 Compile administrative
 record
 All
 Make decision; take
 act ion
 Make decision; take
 act ion

 Make decision; take
 act ion

 Make decision; take
 action

 Make decision; take
 action
 Make decision;  take
 action
 Submit documents and
 required information
124. 1H
 Assist EPA in prepara-
 tion; make recommend-
 at ions

 Make recommendations
 Make recommendations
                            124.19
270.41 and
.42 and
124. 5

270.50
270.40
 Make recommendations and  270.61
 draft emergency permits
 Make recommendations
 Make recominendat ions
270.51
270.43

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                                                           -  14  -
    Federal Program
      Requirement	
_ ._.__V rrv
 Activities Reserved
       for EPA
Activities Subject to
       PjirJ^ic ij>at L°_n
 I.EGAL AUTHORITY
Federal	state    COMM
Citation   Citation
      y.  Review waiver
         requests
IV.   Other Activities

    A.    Assign EPA ID
         numbers

    B.    Implement ADP
         system
  Provide  parameters
  tor  review;  make
  decision
  Make  assignments
 Review using KPA para-
 meters; make recommend-
 at ion
RCRA
                                                                                  ( o )  & ( p ) ,
                                                                                  30uS( j),
                                                                                  JO I 5.
                                                                                  70JO(b)
 Notity EPA of. new not if i-
 ers who contact State
  Establish methods and      Enter data  into system
  guidance; produce reports

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                            ATTACHMENT 3


              MEMORANDUM OF  UNDERSTANDING  BETWEEN

     THE  U.S.  ENVIRONMENTAL  PROTECTION AGENCY,  REGION

             AND  THE  STATE  [COMMONWEALTH/TERRITORY]

                       OF
 Relating  to  the  cooperative  administration of  the  laws  enacted
 by  the  United  States of  America  under  Subtitle C of  the Resource
 Conservation and Recovery Act  of 1976,  as amended  (Public  Law
 98-616, 42 USC 6901 et_.  s_ec.  (hereafter "RCRA" or  "the  Act")
 and  the laws of  the State of  [Add,  if  appropriate, specific
 statutory citations] to  protect  human  health and the environment
 by  regulating  the generation,  transportation,  treatment, storage-,
 and  disposal of  hazardous wastes.

 I.   Preamble

 The  Regional Administrator, U.S.  Environmental Protection  Agency,
 Region 	  (hereafter "EPA" or "Regional Administrator") and
 the  Director(s)  [or o-ther title(s)  as  appropriate] of [State
 Agencyt ies)],  designated as  the  lead agency for the  State,
 (hereafter-"Director(s)" or  "the State") enter into  this Memoran-
 dum  of Understanding (hereafter  "MOU").  The purpose of this MOU
 is to implement  as effectively as possible EPA's responsibility
 under RCRA through the cooperative  efforts of  EPA  and the  State.
 This MOU will  assure efficient allocation and use  of public funds
 and  will minimize duplication of  effort.

 II.  Authority and Responsibility

 EPA  has the  authority to enter into- this MOU pursuant to Section
 3011 of RCRA for  the purpose of  funding elements of  the hazardous
 waste management  program under RCRA.   Because the  State has not
 yet  received final authorization  but anticipates receiving final
 authorization of  its program by  [include date!, this MOU is
 entered into between EPA and the  State.  The Agreement  between
 EPA  and the  State consists of this  Memorandum of Understanding
 and  the Cooperative Agreement negotiated between EPA and the
 State pursuant to Section 3011 of RCRA.

 The  State of 	 conducts  a hazardous waste
management program which is similar to  the Federal hazardous
 waste management  program under Subtitle C of RCRA.   In  addition,
 the  State has applied [intends to apply] for authorization of
 its program  under Section 3006(b) of RCRA and in accordance
 with 40 CFR  Part  271,  Subparf A.

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The  Federal hazardous waste management program is in effect in
[name of State] and will remain 'in effect unless and until the
State receives final authorization of Its hazardous waste
management program.

It is understood that EPA retains full and ultimate responsi-
bility for-the administration and enforcement of the Federal
hazardous waste management program in  [name of State] and that
nothing in this MOU or the Cooperative Agreement shall be
construed to  limit EPA's authority under RCRA.  It is further
understood that the State's participation in this MOU is intended
to maximize the expeditious and efficient implementation
of RCRA and to speed the State's receipt of authorization.

The  Director(s) shall administer those portions of the Federal
hazardous waste management program identified in the grant work
program consistent with the provisions of other agreements, RCRA,
current Federal policies and regulations, and any separate work-
ing  agreements which shall be entered  into with the Regional
Administrator as necessary or desirable for the full adminis- •
tration and enforcement of the Federal program.

Ill. EPA Overview of State Activities

EPA  shall oversee and evaluate the State's performance of func-
tions described in this MOU on a continuing basis to assure that
such performance is consistent with this MOU and all applicable
requirements embodied in current Federal policies, regulations,
and  laws.  This evaluation generally will be accomplished through
the  following activities:

     1.  EPA review of all reports and submissions required by
this MOU and the Cooperative Agreement, applicable Federal
policies, regulations and laws.

     2.  EPA on-site review of State performance in accordance
with schedules established for [annual, midyear, etc.] program
evaluations with commitments made in the annual grant work
program, and with performance expectations outlined in the
"Interim National Criteria for a Quality RCRA Program" of
May  15, 1984.  EPA reserves the right  to conduct unannounced
site visits- to review performance of State activities.

     3.  Consideration of comments concerning the State's
performance received from the regulated community, the public
and  Federal and local agencies.  Any such comments considered
by the Regional Administrator will be  brought to the attention
of the Director if the commenting party has not previously
communicated such to the State.

The  Regional Administrator may request and the Director(s) shall
submit information and provide access  to all files necessary  for
oversight and evaluation of the State's performance of functions
described in this MOU.

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 EPA reserves  the  right  to  ask  for  and  review  information sub-
 mitted  to  the State which  is claimed to  be  confidential by the
 submitter  under State law.  EPA will preserve  the claim of
 confidentiality in accordance  with procedures  established at
 40  CFR  Part 2.

 If,  in  the judgment of  the  Regional Administrator, any perform-
 ance  of functions is inconsistent  with this MOU or current
 Federal policies, regulations, or  laws,  he/she shall  notify
 the State  and may take  any  actions specified  in 40 CFR §35.150.

 IV.   State Notification of  Program Changes

 As  soon as the Director has information  concerning any
 substantial proposed or pending amendment,  recision,  or repeal
 of  any pertinent statute, regulation, directive, significant
 judicial decision or form,  any of  which  the Director  has submit-
 ted  to the Regional Administrator  or agreed to make use of in
 connection with this MOU, the  Director shall  notify the
 Regional Administrator  and  transmit the  text  of any such change
 to  the Regional Administrator.  Within 30 days the Regional
 Administrator shall determine whether the proposed change would
 restrict the authority  of the State to perform in accordance
 with  this  MOU.  Such change may be cause for  termination,
 according  to 40 CFR §30.920, et. seq., of the Cooperative
 Agreement  negotiated pursuant  to this MOU.

 If an amendment, recision, or repeal of  any statute,  regulation,
 directive, form, or any significant judicial decision described
 in  the proceeding paragraph shall  occur  for any reason including
 action by  the [name of  State] legislature or State court, the
 Director will, within 10 days of such event, notify the Regional
 Administrator and will  transmit a  copy of such revision to the
 Regional Administrator.

 V.   Financial Assurance Responsibilities [Optional]

 EPA has reviewed the State's hazardous waste regulations
 for equivalence with the Federal requirements for financial
 assurance  of closure, post-closure care,  and liability coverage.
 The .Regional Administrator will accept an owner's or operator's
 use of [liafr the specific sections of the State's requirements]
 of the State's hazardous waste regulations in lieu of the
 Federal financial  requirements of  40 CFR SS265.143, .145,
 and .147,  pursuant to $265.149.

The Regional Administrator reserves the right to later withdraw
 approval of a State mechanism on a case-by-case basis.

 [This section may also require the State Director to obtain
concurrences from the Regidnal Administrator for certain actions
 such as making reimbursements from a financial instrument or
 allowing a variance.]

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To ensure the availability of funds for closure and/or post-
closure care, the Regional Administrator shall direct the State
to execute the provisions of the financial assurance mechanism
and draw on the financial instrument when the Regional
Administrator has determined that the State has not taken
appropriate actions in a timely manner.
VI.
This Section is for any other provisions appropriate to the
MOU rather than other elements of the Cooperative Agreement.
Likely subjects might be, for example:

     1.  EPA oversight of State inspections and permit
         activities;

     2.  State participation in EPA enforcement activities;

     3.  Procedures for State transfer to EPA of confidential
         information; and                            .         .

     4.  State submission of results of inspections, report
         reviews, etc.

VII. Effective Date

Unless otherwise stipulated, this MOU and any subsequent
modifications will take effect immediately upon being signed by
the Director(s) and the Regional Administrator.

VIII. Amendments

This MOU may be amended or modified by mutual written
agreement signed by both the Director(s) and the Regional
Administrator.

IX.  Termination

This MOU will terminate when the State receives
authorization according to the provisions of 40 CFR  Part 271,
Subpart A.  It may also terminate at any time in accordance
with 40 CPR 530.903, ejt seq.
      State Director                 Regional Administrator
           Date                               Date

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                          ATTACHMENT C
 Dear                      :

      This  letter  is  to  inform  you  that  as of January  31,  1936,
 authority  for  administering  the  hazardous waste  program  under
 the Resource Conservation and  Recovery  Act  (RCRA) of  1976,  in
 the State  of 	 is  expected  to  revert  to  the
 U.S.  Environmental Protection  Agency  (EPA).  RCRA provides  that
 any State  with interim  authorization  which  does  not receive
 final authorization  by.  January 31,  1986, will  automatically
 lose  such  authorization on that  date.   [State] received  interim
 authorization  on     [date(s)l  but  has not yet  received final
 authorization.  Therefore, its authority to administer the  RCRA
 hazardous  waste program may  revert  to the Federal government on
 January  31, 1986.

      Reversion of the State  program will mean  that, as of
 January  31, 1986, you are immediately subject  to and  must
 comply with all applicable Federal hazardous waste requirements
 found in Title 40 of the Code  of Federal Regulations, Parts 124,
 260-265, and 270.  Copies of the Code of Federal Regulation are
 available  for  sale in two volumes  (Parts 100 to  149 and  Parts
 190 to 399) from the Superintendent of  Documents, U.S. Govern-
 ment Printing  Office, Washington D.C. 20402.

     You will  remain subject to  the Federal regulations  until
 [State]   receives final  authorization.   Reversion does, not mean
 that you- are no longer  subject  to     [State's] hazardous waste
 requirements.  These requirements continue  in  force,  unchanged,
 under State law.  RCRA  permits  issued by the State while  it
 was authorized remain in effect  even after  reversion..

       [State]    has entered into an agreement with EPA  which
 outlines which activities will be handled by the Federal
 government, and which by the State.  Attached  is an information
 sheet specifying the reporting requirements for  the program
 during the period of reversion.

     [Add note on State-specific tailoring, if needed.]

     You should familiarize yourself with the  Federal
 regulations in order to  understand what, if anything, you
will have to do differently  in order to comply with the
 Federal requirements.  Questions regarding  reversion  and
 the effect on your operations should be directed to:  (State
 contact name, address and telephone number]  or the RCRA
Hotline,  toll-free at (800)  424-9346, or in Washington, D.C.,
 at 382-3000.

                             Sincerely,


                             Regional Administrator

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                                                    ATTACHMENT
        Reporting, Requirements  During  Program  Reversion


 Note;   Some  items  in  this  list may no.t apoly  in some States; in
 other  States,  items may  have to be added" to the list.

 Federal/State  Reporting  Requirements  for 	(State )	
 Hazardous  Waste  Generators, Transporters, and  Treatment, Storage
 and  Disposal Facility Owners/Operators.

 Biennial Reports:  Biennial reports  (40 CFR §262.41) are to be
 submitted  to	by     [Date]	.

 Changes During Interim Status;  	(State)	  TSD facilities
 with Federal interim status remain under Federal jurisdiction.
 For changes specified in 40 CFR §270.72, owners or operators of
 facilities with  interim  status must submit a  revised Part A
 permit  application to 	.

 Closure Plans, Post-Closure Plans, Notification of Closure;  Tne
 owner/operator of a TSD  facility must submit  closure and post-
 closure plans and notification of closure to 	.

 Contingency Plan Incident  Report;  All applicable contingency
 plan incident reports required by 40 CFR §265.56-and 40 CFR
 §264.56 must be  submitted  to 	.

 De 1 i s t i ng Petitions;  Any  person seeking to exclude  any hazard-
 ous waste regulated under  the 	(State)	 hazardous waste
 rules and U.S. EPA regulations must submitthe petition to the
 Office of Solid  Waste, U.S. EPA; 401 M Street, S.W., Washington,
 D.C.  20460.  The person must also request an  exclusion from
 (State agency) to del-ist the waste and facility under
 (citation to State rule).  [May vary by State.]

 Financial Responsibility;  Financial responsibility  instruments
 are to be submitted to 	_.   (Those owners/  .
 operators who submitted  financial responsibility instruments to
 EPA or the State prior to  January 31, 1986, will not be required
 to submit anything additional to EPA.)

 Groundwater Monitoring Data;  All groundwater monitoring data
 reporting required in 40 CFR §265.94, 40 CFR §§264.222 and 252,
 40 CFR $264.278, 40 CFR §264.309 and 40 CFR §§264.90 - 264.99
must be submitted to 	.  (All ground-water monitoring
data reporting required in (citation to State  rules) must be submitted
 to  (State agency).

 Hazardous Waste Spills;   Transporters are required by 40 CFR
 §263.30 to notify the Office of Hazardous Materials  Regulations,
Materials Transportation Bureau, United States Department of
 Transportation, Washington, D.C. 20490, in the event of a dis-
charge of hazardous waste during transport and 	._.
 [May vary by State.]

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International Shipments;  Any person who. exports hazardous
wastes to a foreign country or imports hazardous wastes from
a foreign country must  continue to notify the U.S. SPA (and
the  (State agency) ) of its intent prior to shiome.it.  See
40 CFR §262.50.

Manifest Exception and  Discrepancy and Unma.iifested Waste Reports
Manifest exception, discrepancy reports and u.unani fested waste
reports are to be submitted to 	.   [Include here any
State-required manifesting procedures and addresses.] See 40
CFR §§262.42 (Exception reporting), 264.72  (Manifest discrepan-
cies) and 264.76 (Unmanifested waste report).

Notification;  Any person required to notify under Section 3010
of the Resource Conservation and Recovery Act of 1976, as
amended must notify U.S. EPA.  (Any person  required to notify
under (State rules) must notify (State agency).)

Permits;  All correspondence regarding Federal Part B permit
applications must be submitted to the U.S.  EPA Regional Office
All correspondence regarding State permit applications must be
submitted to (State Agency).

U.S. EPA Identification Numbers;  The U.S.  EPA has sole author-
ity to issue U.S. EPA  identification numbers.  To obtain an
I.D. number, phone 	.

Withdrawal;  Any generator, transporter or  TSD owner/operator
who wishes to withdraw  from the system must concurrently notify
             •

ADDRESSES

U.S. EPA, Region
   (State agency)
**Note:  In addition, there may be other State and local
         requirements which must be met.

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