United States
            Environmental Protection
              Office of
              Solid Waste and
              Emergency Reioonse
    EPA
DIRECTIVE NUMBER: 9992.3

TITLE:. Federal Facilities Negotiations Policy



APPROVAL DATE: August 10, 1969

EFFECTIVE DATE: August 10, 1989

ORIGINATING OFFICE: Federal Facilities Hazardous
Waste Compliance
Q FINAL

D~DRAFT

  LEVEL OF DRAFT

   QA — Signed,by AA or OAA
   D 8 — Signed by Office Director
   DC — Review & Comment

REFERENCE (other documents):
SWER       OSWER       OS
  DIRECTIVE    DIRECTIVE   Dl

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               UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                          WASHINGTON. D.C.  20460
                              AUG I 0 1989
                                                         GPP'iCE Of
                                                SOLID WAST- AND £\JO*"CHNCV RESPONSE
MEMORANDUM

SUBJECT.;  Federal  Facilities  Negotiations  Policy

FROM:    /Jonathan  Z.
                 Assistant
TO:       Regional Administrators

    Much progress has  been  made  over  the  past  year in establishing
new principles governing our  relationship with other t'oleral
agencies we are charged to  regulate.   We  now have  speciric tools and
procedures in place  to resolve RCRA and CERCLA compliance and
cleanup issues.  The challenge we  now face is  to manage the process
so that these issues are resolved  in  a timely  and  efficient manner.

BACKGROUND

    We recently concluded M^qotiations on several  agreements with
the Department of Energy (DoF, ) and the Department  of Defense (DoD)
under both RCRA and CERCLA."  I know that  you agree that these
negotiations took far  too long to  conclude and that negotiations
with Federal facilities, in general,  are  taking a  disproportionate
amount of. your staff's time.  I  share your frustration.   I believe
it is EPA's role to be a catalyst  and a facilitator for obtaining
three-party agreements wir.h t. he  states and other Federal agencies,
and that we must use every  -->ol  available to make  this happen.   For
these reasons, I am est.abi--.iung the  following policy governing
Federal facilities negoti.if ions.   This policy  was  developed in
consultation with your Wa.'U •?  Management Divisions  and Offices of
Regional Counsel.

POLICY

    RCRA COMPLIANCE AGREEMENTS

    The process for resolving RCRA compliance  issues at Federal
facilities is described in  the memorandum, Enforcement Actions-..at
Federal Facilities under RCRA and  CERCLA  (January  25 , 1988 OSWER
Directive Number 9392.0). /Negotiation time frames -and the process
for elevating compliance- disputes  are described in the memorandum,

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                                 -2-

Elevation Process  for Achieving Federal Facility Compliance  under
RCRA  (March 24, 1988, OSWER Directive Number  9992.1)l

    In all future  RCRA Notices of Noncompliance (NON) to Federal
fac-ilities , Regions should include  a statement notifying the
facility of the negotiation time frames established  by EPA,.policy,
and the automatic  elevation of disputes after 90 days or 120 days
with  an extension.  When a RCRA compliance dispute is elevated-
pursuant to the March 24, 1988 memorandum, the Region should
consider issuing a press release concerning the compliance status of
the facility.  EPA policy concerning the use of press.;-releases ac
Federal facilities i's"' .described in  EPA's Federal Facilities
Compliance Strategy.

    RCRA SECTION 3008(h) ORDERS

    In accordance  with the January  25, 1988 memorandum, the existing
administrative procedures for issuing RCRA 3008(h) orders, as set •
forth in 40 CFR. Part 24, will be applied to Federal  agencies.
However, Federal agencies will have the opportunity  to elevate -
disputes to the Administrator for a final decision in the event a
dispute cannot be  resolved at the Regional Administrator .level 1;

    CERCLA SECTION 120 AGREEMENTS

    Section 120 Interagency Agreements (IAG), are complicated and
often difficult to negotiate because of the different jurisdictional
arguments raised by the negotiating parties, the scope of the
agreements relative to NPL and:non-NPL areas, the different layers
of bureaucracy involved, and the relative newness  (i.e., post model)
of the negotiation process.  The model language negotiated with DoD
and DOE has been helpful in moving the negotiations  forward and
should continue to be used without changes or further negotiation
except to accommodate important state concerns.

    The same model language should be used when negotiating CERCLA
Section 120 Agreements with Federal Agencies other than DoD and DOE.
The use of the model language would reduce the amount of timeUt
takes to negotiate the Agreement, ensure consistency among the
different Federal  agencies, and reaffirm EPA's commitment, to the
model language.
     lThe .guidance referenced above .;does not apply ~to .enforcement
actions.against contractor operators at Federal facilities (GOCOs)
since EPA can utilize its full range of enforcement authorities at
GOCOs to achieve compliance.  The Regions-are encouraged to consider
proceeding against GOCOs and a separate GOCO enforcement strategy is
being developed.

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                                 -3-

     I expect that negotiations will become less protracted with
each site-specific settlement, since the parties will gain more
experience with the negotiation process, model language and
concepts.  Notwithstanding recent agreements and experience gained,
however, I am still concerned that TAG negotiations take too long
and are too resource intensive.  Therefore, I am establishing this
Federal facility negotiation policy to expedite the negotiation
process.  This policy requires establishing deadlines for'."settlenient
•and- provides for elevating unresolved disputes to Headquarters with
subsequent referral of a CERCLA §106 Administrative Order.^to the
Department of Justice (DOJ) or settlement of a two-party .agreement
between the Federal agency and EPA, as appropriate.  The "po'licy is
as follows:         .                             .        ,'Y.

1)  Establishing Deadlines: The first step is for the EPA" regional
    office to establish a deadline for conclusion of negotiations.
    This deadline is not to exceed 90 days.  The deadline for
    ongoing negotiations should be less than 90 days depending on
    how long the negotiations have been in progress.  If, most major-
    issues are resolved, and prospects for agreement are good, the
    deadline may be extended once for 30 days by mutual agreement
    among the parties.                                    • ^.Y

    Deadlines should be set in accordance with the SCAP targets and
    in consultation with states.   The process for establishing
    deadlines is to send the Federal facility a Federal facility
    version of a Special Notice Letter with a draft IAG attached
    (See Attachment I:   Sample Federal Facility Notice Letter).
    This notice letter and draft IAG should be sent at least 30
    days before the start of the targeted quarter.   Regions.with
    multiple targets in any given quarter should stagger*  '.
    deadlines to avoid elevation of Multiple lAGs at the same
    time.

    Since states are an integral part of the negotiations
    process, they should be involved in the planning for^
    establishing negotiation deadlines to assure their
    availability.  Regions should contact their state
    counterparts and outline SCAP targets for FY89 and FY90 to
    allow the states to factor these targets into their internal
    planning and budget cycles.  This planning process shduld be
    conducted annually.   Additionally, the draft IAG sent with
    the Special Notice letter should have State roles reflected
    in the language.   The three-party version of the model
    language recently sent to the Regions can be used as ,
    guidance.   You should discuss the incorporation of this
    language into the draft IAG with the State in the course of
    your initial contact.

2)  Establishing scope;  As part of the deadline setting process,
    Regions need to address the scope of the IAG.   This is

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                                 -4-

    imperative because the scope will often dictate the
    difficult jurisdictional issues that arise.  The EPA
    regional office should discuss the scope with the State and
    the Federal facility to determine whether either party has
    specific concerns relative to the releases potentially
    arddressed by the TAG.  EPA's general policy is to
    address all releases at a facility under a CERCLA IAG.
    However, in some situations, the scope of the IAG may be
    'limited "to areas on the facility that caused the facility to
    b;e";listed on the MPL with the remaining releases (i.e., non-
    NPL releases) to be addressed under RCRA permitting or State
    enforcement.  In other situations, the IAG scope could
    include both RCRA and CERCLA lead activities.   Scoping
    decisions will most often be based on technical judgements
    about the nature and location of contamination at the
    facility.

3)  Negotiations;  To expedite the negotiation process, prior to
    the start of actual negotiation, the Region should
    coordinate with the Federal facility and the State to
   'establish negotiation teams which are limited in number and
    have authority for most negotiation decisions.   After
    initial negotiation sessions have occurred, it may be
    effective to schedule a lengthy negotiation session of 3-5
    days to address and resolve all outstanding issues.  These
    intensive negotiation sessions have proven to be fruitful
    and an effective use of^time.  It is important for Regions
    to closely coordinate with the Federal Facilities Hazardous
    Waste Compliance Office'(FFHWCO) during the negotiation
    process by either sending the FFHWO copies of draft lAGs as
    they are developed, or in some cases by including the FFHWCO
    on the negotiation teanu. -Nationally - significant issues
    that are tentatively agreed to in negotiations need to be
    elevated to decision-makers for concurrence or further
    discussion.   The intent of this policy is to preclude last
    minute changes to language that was previously agreed upon.
    Finally, in some situations where the Region knows that a
    state will raise significant issues, it may make sense to
    discuss these issues and" EPA's position prior to three-party
    negotiations.  You should inform the Federal agency that you
    are engaged in such discussions with the state.

4)  Elevation;  If no agreement is reached on the deadline date (up
    to 90 or 120 days with extension)  then the Region is to elevate
    the dispute to Headquarters for a 30 day period of negotiation
    antf concurrently prepare,, in, consultation with Headquarters,
    either a CERCLA §106 OrderC for referral to DOJ or a two-
    party agreement , depending on which is appropriate.
    Headquarters will coordinate closely with .the Region during
    this 30 day period.

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                                 -5-

    A dispute should be elevated with a recommendation for a
    §106 Order when, in EPA's  judgment, the Federal facility is
    refusing to agree to a reasonable demand by EPA or the
    State, or is failing to devote  adequate resources to the
    negotiating process.  A dispute should be elevated with a
    recommendation for a two-party  IAG when, in EPA's judgment,
    the Federal facility has taken  reasonable positions on all
    outstanding issues and the State is taking positions which
    EPA or the Federal facility cannot reasonably agree to, or
    the State is devoting inadequate resources to the
    negotiating process.

    If the dispute cannot be resolved at Headquarters within 30
    days, then either the §106 Order will be referred to DOJ for
    concurrence, or EPA and the Federal Agency will enter into
    the two-party IAG.  DOJ has agreed to a 14-day turnaround
    time for review of referred §106 orders.  The Region has the
    flexibility of elevating a dispute to Headquarters at any
    time during the established negotiation period should it
    become necessary (i.e. , outstanding issues remain that
    present national policy concerns which can only be resolved
    in Headquarters).  The Region,  in the case of early
    elevation, should still prepare the order or two-party
    agreement.  Attached is a copy of DOJ's memorandum on
    concurrence procedures for §106 Orders (Attachment 2) which
    can be used as guidance.

5)  Planning;  The Regions should establish the deadlines for
    ongoing negotiations and fourth quarter SCAP targets and forward
    this information to the FFHWCO within 14 days of the date of
    this policy.  Subsequent deadlines should be forwarded' to
    the FFHWCO two weeks prior to the start of each quarter.
    The FFHWCO will provide these deadlines to the appropriate
    -Federal agency headquarters.

    The purpose of this policy is to preclude protracted
negotiations by establishing deadlines for all parties with
consequences for failure by the Federal agency or the state to reach
settlement.  I believe that in most cases 90 days is sufficient time
to successfully conclude negotiations and that the potential for a
§106 Order or two-party agreement serves as an incentive to keep all
parties at the negotiating table.  The Federal Facilities Hazardous
Waste Compliance Office (FFHWCO) will continue to provide Regions
with assistance in negotiating lAGs, FFCAs, and 3008(h)  orders.

    Questions on this policy and the negotiation deadlines should be
referred to Chris Grundler, Director, or Gordon Davidson, Deputy
Director, or your regional coordinator within the FFHWCO at FTS 475-
9801 (mail code OS-530).

Attachments

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                           ATTACHMENT 1


                                                FOR NPL SITES ONLY
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Re:    Interagency Agreement for    (name of site)
       National Priority List Superfund Site

Dear                   :
    The United States Environmental Protection Agency (EPA) has
identified releases or threatened releases of hazardous
substances, pollutants or contaminants at the 	 site.
The 	 site is a Federal facility which is owned or operated
by the 	(name of Federal aaencv or department)      Therefore,
pursuant to Section 120 of CERCLA, the 	(aaencv or
department)	 is ultimately responsible for addressing releases
or threatened releases of hazardous substances, pollutants or
contaminants at or from the     •    site.

    This letter serves to notify   (agency or department)    that
EPA is prepared to negotiate an Interagency Agreement (IAG) to
formally establish that the   (agency or department)   will
investigate and control the releases or threatened releases of
hazardous substances, pollutants or contaminants at or from the
	 site pursuant to CERCLA.   While the   (agency or
department)   is responsible for addressing the releases or
threatened releases pursuant to CERCLA, EPA intends to oversee the
Remedial Investigation and Feasibility Study (RI/FS) phases, as
part of the CERCLA remedy selection process, and the Remedial
Design and Remedial Action (RD/RA) phases of the response action
at the 	 site.  The IAG (see EPA draft enclosed) will be
developed under Section 120 of CERCLA and will reflect the
commitment of   (agency or department)   to conduct the RI/FS and
any remedial action needed at the site, as determined by the
RI/FS, in accordance with CERCLA, as amended, the National
Contingency Plan (NCP) and appropriate EPA Guidance.

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    EPA has determined that establishing a pre-defined period of
time  for negotiation of an IAG will facilitate the development of
the Agreement with    (agency or department)    and will
ultimately serve to expedite remedial action at the 	 site.
Therefore, this letter serves as "special notice" pursuant to
Section 122(e)(l) of CERCLA, as amended, of EPA's intent to
conduct negotiations with   (aaencv or department)   and the State
of 	 for the development of an IAG.

    By this special notice, EPA hereby establishes a ninety (90)
day period for negotiation of the IAG.  If at the end of the
ninety (90) day period an IAG is not successfully negotiated
between EPA,   (agency or department)   and the State, EPA may,
where appropriate, extend the negotiation period for an additional
thirty (30) days.  If at the end of the ninety (90)  day period (or
one hundred and twenty (120) day period, where extended by EPA) an
IAG is not successfully negotiated, EPA may issue an order to
  (agency or department)   pursuant to Section 106 of CERCLA, with
the concurrence of the Department of Justice, for the conduct of •
the required work.  Where State participation in the IAG cannot be
achieved within the ninety (90) day period (or one hundred and
twenty (120) day period, where extended by EPA), prior to EPA's
issuance of an order under Section 106 of CERCLA, EPA may, as
appropriate, attempt to negotiate a two-party IAG with the
	(aaencv or department)     This two-party option does not serve
as a limitation on EPA's discretion to develop and issue an order
under Section 106 of CERCLA.

    In response to this special notice, please provide EPA with a
letter indicating:

       o    the address and telephone number of the
            (agency or department)    official for EPA
            to utilize as a point-of-contact; and

       o    a statement of the   (agency or
            department)    willingness to negotiate  an
            IAG.

    Should such a letter not be received by EPA within fourteen
(14)  days of your receipt of this letter, or should  the deadline
pass without successful negotiation of an IAG, EPA will consider
the period of negotiations closed.   EPA then will have the option
of issuing an order under Section 106 of CERCLA, proceeding under
other available statutory authority, or proceeding with any
appropriate off-site response using Superfund monies.

    If you are already involved in discussions with  State or local
authorities, engaged in voluntary action, or involved in a lawsuit
regarding this Site, you should not interpret" this letter to
advise or direct you to restrict or discontinue any  such

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activities.  Please provide a copy of your letter to any other
party involved in those discussions.  You also should be aware
that EPA sill not delete the 	 site from the National
Priorities List until the necessary remedial work has been
concluded in accordance with CERCLA and the NCP.

    Your letter to EPA should be addressed to:

            Site Remedial Project Manager
            U.S. Environmental Protection Agency
            Region 	
    If you have any questions   RPM's name   can be reached at
phone number.  Legal questions should be addressed to   attorney's
name.  at   attorney's number

    Thank you for your cooperation.

                           Sincerely,
                           	•  	,  Director
                           Hazardous Waste Management Division

Enclosure

cc:   Federal Department or Aaencv Headquarters

     State Environmental Protection Agency
                          ,  Deputy Chief
     Environmental Enforcement Section
     Department of Justice

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                                   •- o  i^epirtment of Justice

                                   Land ar.d Natural R-sour:;s
                          ATTACHMENT 2
Office of th« A«M« Aaooty GmraJ               ("arti/ira* 0 C. :0:JO

                                     DEC 2 7 1988
     PROCEDURES AND CRITERIA FOR DEPARTMENT OF JUSTICE CONCURRENCE
            IN  EPA ADMINISTRATIVE ORDERS  TO  FEDERAL  AGENCIES


        1.   Purpose — The purpose of these Procedures and Criteria
   is to implement the responsibilities of the Attorney General  (as
   delegated to the Assistant Attorney General for the Land and
   Natural  Resources Division) under section 4(e) of the Superfund
   Executive Order (EO 12580, Jan.  23, 1987) to review any ad-
   ministrative order (*AO*) that the Environmental Protection
   Agency (*EPA*)  proposes to issue to a federal agency under
   sections 104(«)(5)(A)  or 106(a)  of the Comprehensive Environaen-
   tal Response,  Compensation, and Liability Act (*CERT-A*), 42   .
   U.S.C.  9604(e)(5)(A),  9606(a).

        2.   Procedure —The EPA Assistant Administrator for Solid
   Waste or, if delegated, the EPA Regional Adainistrator, should
   submit the proposed AO and a referral letter to:

             Assistant Attorney General
             Land and Natural Resources Division
             Department of Justice
             Washington,  D.C. 20530

   with a copy to:

             Chief
             Policy,  Legislation and Special Litigation Section
             Land and Natural Resources Division
             Department of Justice
             Washington,  D.C. 20530

        The-emftexral letter should include the following informa-
   tion:     3w

        —   Jt ftateaent of the technical basis for the AO, including
        all necessary findings that support the existence  of an
        iMinent and substantial endangeraent froa an actual or
        threatened release (for an order issued pursuant f.o CERCLA
        f 106(a)),  or'the basis for believing that there nay be  a
        release or threatened release  (for an order issued pursuant
        to  CERCLA §  104 (e)(5)(A));

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      —  A statement of EPA's prior dealings with the agency and
      the efforts that have been made to resolve the matter;

      —  A statement of the objections raised by the agency in
      objecting to compliance and EPA's response to those
      objections;

      —  A statement of whether there are non-federal PRPs or
      government contractors responsible for the- facility and the
      status of any EPA enforcement efforts against such persons;

         The name and telephone number of both the EPA attorney
      with line responsibility for the AO and the EPA Headquarters
      contact in the Federal Facilities Hazardous Waste Compliance
      Office within the Office of Waste Programs Enforcement.

      Upon receipt, the Policy, Legislation and Special Litigation
Section (*PLSL*) will promptly (i)  enter the proposed AO onto its
docket; (ii)  review the proposed AO and advise the EPA line
attorney and the Federal Facilities Hazardous Waste Compliance
Office contact at EPA Headquarters if additional information will
be required;  (iii) evaluate the proposed AO according to the
criteria listed below and prepare a recommendation for the
Assistant Attorney General.  PLSL will then forward the proposed
AO and its recommendation to the Assistant Attorney General for a
decision.   If the proposed AO and referral letter include all the
necessary information, the Assistant Attorney General will make
his or her decision within two weeks of receipt of the proposed
AO.  The decision will be provided to the Assistant Administrator
for Solid Waste or the Regional Administrator, as the case may
be, in a letter stating the Assistant Attorney General's
concurrence,  concurrence subject to conditions, or objection to
the proposed AO.

      In situations where faster action is required  (for instance,
where there may be an emergency that presents a direct and
immediate threat to the public health), PLSL and the Assistant
Attorney General will attempt to review the proposed AO within  24
hours.  To obtain expedited review, the EPA line attorney or the
Federal Facilities Hazardous Waste Compliance office contact at
EPA Headquarters should contact PLSL by telephone at FTS  633-
1442  at tfcft earliest possible time.

      3. ^^frfearta — In deciding whether to issue the  proposed
AO, the Assistant Attorney General will consider the  following
factors:  .

      — whether the proposed AO is consistent with  EPA's
     statutory authority;

     — the extent of prior consultation with the affected
      federal agency at the appropriate levels of authority;

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         wither  any non-federal PRP
         **1  appropriateness  o? thJ
         *g«ncy.                   *

In addition  to the  foregoing  EPA
«ay raise, and the  AssiItan?'
other factors that  may be
                                                an AO to  the
                                           D«f«1:ment of Justice
                               ROGi.K J . ' MASZULUT
                               Assistant Attorney  General
DATED: December  27 ,  i9ga
    •;flft<>i

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