UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
DEC I 7 1986
OFFICE OF
SOLID WASTE AND EMERGENCY RESPONSE
MEMORANDUM 9375.1-4-10
SUBJECT: Addendum to the Manual: State Participation in the
Superfund Program -- Chapter X, Closeout of Superfund
Remedial Response Agreements
FROM: Henry L. Longest II ,,, n. ,,/ r.
Director MOlU, W J£*/*AĞ
recor
Office of Emergency and Remedial Respons
TO: Mailing List
Attached is Chapter X, Closeout of Superfund Remedial Response
Agreements, to be added to the manual. This Chapter is designed
to provide guidance to Regional offices and States on the procedure
for the administrative closeout of various Superfund Remedial
Response Agreements. The Chapter describes the closeout process
for site specific Cooperative Agreements, Multi Site Cooperative
Agreements, and the State's involvement in closeout of Federal-
lead projects including Superfund State Contracts. It also
addresses the reports and time requirements at the end of each
response activity, the final closeout reports, and record keeping
requirements.
The Chapter is based on 40 CFR Part 30, Subpart H, the
closeout requirements that apply to all recipients of EPA financial
assistance, Chapter 37, "Reporting" and Chapter 40 "Closeout" of
the EPA Assistance Administration Manual. It was also developed
with input from EPA's Office of General Counsel, the Grants
Administration Division, the Financial Management Division and
the Office of Waste Programs Enforcement. On June 17, 1986, a
draft of the guidance was distributed for comment to Headquarters
and Regional offices as well as the Association of State and
Territorial Solid Waste Management Officials. Comments on that
draft are reflected in this addendum. A discussion of the
substantive changes and clarifications to the draft as noted by
the commenters follows.
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CHAPTER X
CLOSEQUT OF SUPERFUND RESPONSE AGREEMENTS
OSWER DIRECTIVE
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Several commenters noted that EPA_'s responsibilities fop
closeout vary In assignment from Region to Region depending on
regional, organization. To reflect the difference in Regional
structure, we have listed EPA's responsibi1ites and in some
instances, indicated the usua] Regional designee rather than
assigning them to a specific function or office.
The section on Superfund State Contracts (SSC) for Federal-
lead projects has been expanded to reflect the roles of EPA and
the State in the closeout process. In SSCs, EPA is responsible
for providing the COE/REM final technical report. Unlike
Cooperative Agreements, the State is only responsible for providing
a technical report detailing how all the terms and conditions of
the SSC have been satisfied and any applicable ancillary reports
required by 'the SSC. Although the record retention period for '
EPA and the COE in Federal-lead projects is 10 years after the
reconciliation of the final payment, the State is only required to
maintain its records for 3 years after this point unless the
project is audited. In that case, retention is required until
after the completion of the audit or the three years, whichever
is the longest. Certification is provided by the contractor
that the remedy is functional prior to the award of a Cooperative
Agreement to the State for O&M as required by the guidance in
this Manual .
A commenter suggested that it would be helpful to provide
information on the types of background materials needed for a
final audit. This information is detailed in Chapter IX, Audits
on pages 10 and 11 and is so noted in the text of this Chapter.
The section on termination of a Cooperative Agreement has
been revised to reflect that termination may be taken by EPA for
cause as well as by mutual consent.
Several areas of additional emphasis or clarification requested
by commenters have been incorporated and are described as follows:
0 Even after closeout, the State's obligations (e.g., O&M)
continue and can be enforced.
0 The use of "recipient" in the text was replaced by "State"
although in the future some recipients may be political
subdi visions.
0 Invention Disclosure Reports are only required if and
when there is something to report; negatives are not
requi red.
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A reference to Superfund State Contracts (SSC) has
been included as a type of remedial response agreement
for which 'the State must submit all dellverables as
required by the terms and conditions of the agreement,
and the section on Superfund State Contracts has been
expanded.
The FSR for the end of a fund-financed response activity
covers only the completed activity, not the entire
Cooperative Agreement. If the budget period for the
project is longer than one year, the FSR must be submitted
annually based^ on the anniversary date of the period.
The format has been changed and an exhibit displaying
the reports required for various response activities
and closeout has been included 1n this Chapter.
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X. CLOSEOUT OF SUPERFUND RESPONSE AGREEMENTS
The closeout of a response project is the final pro-
cess used to determine that all required substantive work
and all applicable administrative requirements covered by
a response agreement are completed. An aqreement is phy-j
sically complete only after all deliverables (work and
services) required by the terms and conditions of the
response agreement have been satisfied. A project is
administratively complete after all payments are made, all
Claims or legal suits are settled/ completion of cost
recovery requirements is documented, and the required
administrative reports are delivered and accepted.
Office of Management and Budget Circular A-102,
Attachment L, establishes the basic Federal requirements
for closing out projects with State and local governments;
40 CFR Part 30, Subpart H, implements this circular and
contains the closeout requirements that apply to all
recipients of EPA financial assistance. General require-
ments for recipient reporting are stated in 40 CFR
Part 30.' Chapter 40 of EPA's Assistance Administration
Manual (1984) also provides policies and procedures for
closeout. Specific Superfund reporting requirements are
cited throughout this chapter.
The requirements for assistance agreements have been
used to develop the procedures for closing out a Superfund
State Contract (SSC) described in this chapter.
A. COOPERATIVE AGREEMENT CLOSEOUT
Closeout of a singles-site Cooperative Agreement can
take place after completion of work for a response acti-
vity in the Cooperative Agreement or upon termination, of
the Cooperative Agreement. MSCAs have two levels of
closeout: the conclusion of response activities at an
individual site covered by the agreement, and the closeout
of the umbrella agreement itself. The closeout of site-
specific response activities, such as RI/FSs, can take
place whenever EPA's participation in the activities is
completed. The MSCA umbrella agreement can be closed out
after all individual response activities within the agree-
ment have "been completed or terminated and closed out.
A.1 Termination of a Cooperative Agreement Before Work Is
Completed
Notification of termination must be delivered to a
recipient by an appropriate letter signed by the Award
Official (Regional Administrator). The termination must
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result in an amendment to the Cooperative Agreement.
Termination may be initiated by EPA for cause or it may be
the result of mutual consent between EPA and the recipi-
ent. If it occurs by mutual consent, EPA and the State
must develop a mutually acceptable agreement that outlines .
the terms for the termination. After notification of
termination or development of the termination agreement,
the appropriate reports (see Sections A.4 and B.2) and
other documents must be submitted for Cooperative Agree-
ment closeout. Examples of conditions where termination
of existing agreements might occur include:
A change from State-lead to Federal-lead during^
response, for which the State does not request
management assistance
Redesignation of lead within the State
A settlement with responsible parties for their
performance of the work and no oversight funding
is requested or required.
Additional information on termination policy and proce-
dures is found in Chapter 39 of the Assistance Administrar-
tion Manual.
A.2 Closeout of Cooperative Agreements 'at the Conclusion
of Fund-financed Response
The following are examples of when closeout can occur
after completion of work:
The completion of all pre-remedial work (e.g.,
PA/SI)
Completion of a State-lead RI or RI/FS leads to
EPA's selection of a no action alternative (no
further action at the site is necessary)
Completion of State-lead RI/FS activities that
result in the selection of a remedy, but where a
settlement is reached with responsible parties to
conduct RD/RA activities and the State does not
request or require funding assistance for over-
sight activities
Completion of a remedial action when there is no
O&M ...,-.
Completion of fund-financed O&M
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Completion of a Federal-lead project with con-
current funding of management assistance activi-
ties
Completion of State-lead enforcement activities
, At any of the above points during a site-specific
project under an MSCA.
Other points may be appropriate, given the individual
circumstances.
A.3 General Closeout Responsibilities
Both EPA and the State are responsible for ensuring
that the Cooperative Agreement reflects the actual project
and for correcting deficiencies. 40 CFR 30.700 provides a
listing of changes that require a formal Cooperative
Agreement amendment; 40 CFR 30.705 discusses changes that
do not require a formal amendment.
A.3.a State Responsibilities
A State must complete the work specified in the Coop-^
erative Agreement and must produce the required reports,
manuals, plans, specifications and other data. It must
also provide the required final Financial Status Report
(FSR) for the last budget period as well as other final
administrative reports. The SPO, State contractors and
consultants, and State financial management staff will
generate and/or deliver most of these products and will
prepare the required reports, but the State retains the
responsibility for ensuring that all products and reports
are submitted on time.
The State is responsible for the completion of the
final project as described in the Cooperative Agreement.
This will include the following reports and activities:
Submittal of amendments to the Cooperative Agree-
ment to reflect current project status (if appli-
cable)
Th.e draft and final technical reports
A final FSR (FSR), SF-269
Ancillary products such as tights in technical
data, supporting statistical data, or O&M'manuals
Cost recovery requirements (if applicable)
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Other required reports
Notification of settlement of any claims or legal
suits
An assurance that institutional control^, if
required, are in place.
A.3.b EPA Responsibilities
Although the EPA Cooperative Agreement Project Officer
is usually responsible for most of the following tasks,
aqtual responsibility can vary among Regions. Some of the
tasks, such as resolution of audit findings and disputes,
may be the responsibility of the Regional Assistance Ad-
ministration Unit (AAU) or the Action Official (Regional
Administrator). EPA's responsibilities are:
Process Cooperative Agreement amendments to re-
flect current project status (if applicable)
Review/inspect work in the project and arrange
for acceptance or correction
Review and approve required reports
Follow through on delinquencies or deficiencies
Assure that all audit exceptions are resolved
Resolve any disputes*
Issue final determinations on any outstanding
issues*
Document closure in the official file **
Maintain the official records
Establish accounts receivable for State debts,
reconcile differences in billings and payments,
and collect any amount due to EPA or make any
final payment due the State***
* Usually the Action Official
** Usually the Regional Financial Management Office (FMO).
*** Usually the Regional AAU.
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Assure that the terms of the Cooperative Agree-
ment have been met and that required reports have
been received and accepted**
Update the Grants Information and Control System
(GIGS)**
Inform the State of upcoming closeout dates.**
A.4 Reports Required for Closeout
There are several types of reports required to docu-
ment closeout of a response activity. Exhibit X-l, on the
following page, displays the reports required for both
remedial response activities and agreement closeout.
A.4.a Final Technical Report
The Cooperative Agreement included for the final phase
of a fund-financed response must contain a provision re-
quiring the submission of a final technical progress re-
port at the end of the project. Technical progress re-
ports must be submitted quarterly during the conduct of
each response activity and also at its completion. Only
the report submitted at the time of agreement closeout is
considered the final technical progress report.
The final technical progress report must include the
following elements:
A summary of work contained in the site-specific/
activity-specific SOW
A summary of modifications or changes to the
work, and a justification for those changes
Certification that the work has been performed
For fund-financed remedial actions, a certifi-
cation by the State's contractor that the remedy
is operational and functional
For fund-financed O&M, a description of the final
site monitoring and maintenance provisions.
The State should submit a draft of the final technical
progress report to the EPA Cooperative Agreement Project
Officer ninety days before the end of the approved project
** Usually the Regional Financial Management Office (FMO)
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EXHIBIT X-1
REPORTING REQUIREMENTS
FOR REMEDIAL RESPONSE ACTIVITIES
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REPORT*
RI/FS |
Financial Status Report
Technical Progress Report
Ancillary Products
RI/FS Report
Other Reports Required by CA
Invention Report (if applicable)
Equipment Inventory (if applicable)
RD |
Financial Status Report
Technical Progress Report
Ancillary Products
Approved Design Package
O&MPtan
Invention Report (if applicable)
Equipment Inventory (if applicable)
RA |
Financial Status Report
Technical Progress Report
Ancillary Products
Approved Design Package
O&MPtan
Invention Report (if applicable)
Equipment Inventory (if applicable)
O&M |
Final Financial Status Report
Final Technical Progress Report
Ancillary Products
Final Invention Report (if applicable)
Final Equipment Inventory (if applicable)
DUE DATE
Annually and within 90 days of activity completion
Within 90 days of activity completion
As defined by the Cooperative Agreement
As defined by the Cooperative Agreement
Annually and within 90 days of activity completion
Annually and within 90 days of activity completion
Annually and within 90 days of activity completion
Within 90 days of activity completion
As defined by the Cooperative Agreement
As defined by the Cooperative Agreement
Annually and within 90 days of activity completion
Annually and within 90 days of activity completion
annually and within 90 days of activity completion
Within 90 days of activity completion
As defined by the Cooperative Agreement
As defined by the Cooperative Agreement
Annually and within 90 days of activity completion
Annually and within 90 days of activity completion
Annually and within 90 days of activity completion
Within 90 days of activity completion
As defined by the Cooperative Agreement
Within 90 days of activity completion
Within 90 days of activity completion
If the activity is the final State-funded activity, the project can be closed out after reconciliation of payments and the
FSR, Technical Progress Report, Invention and Equipment Inventory would be final reports for closeout. A draft
technical progress report should be submitted to EPA 90 days before the end of the approved project period.
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period (see the Assistance Administration Manual. Chap-
ter 37-5). The State must prepare and submit its final
technical progress report within ninety 4a7s after the end
of the, final fund-financed activity period. The Region
has the option of requiring the State to submit the draft
technical progress report as a separate deliverable or to
pombine it with thQ last quarterly technical progress
report'before the end of the project; this requirement
should be identified in the Cooperative Agreement.
A.4.b Financial Status Report
The State must submit an FSR to 5PA within ninety
calendar days following the end of the project period. An
FSR alsp is required ninety calendar days after the close
of each budget period and at the completion of each fund-
financed response activity (see Appendix F). In this
latter instance, the FSR should cover only the completed
activity, not ttye entire Cooperative Agreement if the
budget period is lpn^e,r than one year, the p'sRj must be
submi^t^d annually based on the anniversary d^ite of the
period. Although the FSR for the end of e,ach budget per-*
iod can be submitted with the quarterly technical progress
report, each is a separate document.
The final FSR must reflect z;ero unliquidated obliga-
tions. If any obligations remain unliquidated/ the FSR is
considered an interim report and a final FS,R is required
later. All cost recovery actions must be, completed and
all claims or legal suits must be settled for a final FSR
to t?e file,d and the project closed out. (See Appendix U
of this manual for Superfund cost documentation require-
ments. )
A.4.c Ancillary Products
Ancillary products include statistical or monitoring
data, rights in technical data, O&M plans and manuals, and
other reports as required in the Cooperative Agreement.
These should be submitted to EPA in accordance with the
requirements specified in the Cooperative Agreement.
A.4.d Property/Equipment Report
At Cooperative Agreement closeout the State must sub-
mit a final inventory of property acquired with CERCLA
funds used ..on. the project, .listing the present condition
of each item; this must; be accompanied by a 'request for
disposition instructiqns. The State can make recommen-
dations for such disposal when the report is submitted.
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The State, in its Cooperative Agreement application, is
required, to ;ass.ure,that it will 'follow EPA's instructions-.
in disposing of .the equipment, at the end of the" proj- '.
ect(s), or -it can meet .this requirement by accepting a -
special condition in the award document. Equipment that'
is part of an. in-place remedy.will not require disposal
prior to closeout of the project.
Requirements for equipment disposition for response
activities are detailed in Appendix T of this manual, in
40 CFR 30.532, and in Chapter 26 of the Assistance Admini-
stration Manual. Due to the site-specific requirement of',.
CERCLA funding for Cooperative Agreements, the first paia-
graph of 40 CFR 30.532 (which authorizes State-use of.
purchased equipment at other EPA or Federal projects .with- .
out any reimbursement to the.Agency) does not apply" to .'.'.
equipment purchased.with CERCLA funds 1 Property purchased
with trust fund monies', for remedial planning activities .;
must be used only for trust fund projects, unless payment .
is made on its proportionate share of the current fair
market value. ,
EPA funds cannot be used to purchase transportable or
mobile treatment systems. For transportable or mobile
treatment systems (thermal*destruction, biological or
physical-chemical units, etc.) the State must procure a
contractor that has the appropriate equipment to conduct
the work. Since title vests with the- contractor,
disposition of the transportable or mobile systems is not
the State's responsibility. ,
Nonexpendable personal property originally costing
$1,000 or more must be properly disposed of at the end of k
the project(s) for which it was purchased.. The State,'
should provide EPA with its recommendation for disposal of
equipment._ If the equipment has residual value at the,end
of the projeet(s)/ EPA will consider the State's recommen-
dation and will direct the State to take one of the fol-
lowing actions:
Obtain EPA's approval to use the equipment on
other CERCLA remedial planning pfdjects -
(accounting must be done on a proportionate share
basis *:by site/activity) .
Use .the equipment on other Federal projects and
pay EPA ,(the .trust' fund) its proportionate share
of the current fair market value * ,
Keep the equipment and pay EPA (the trust fund)
its proportionate share of the current fair mar-
ket value
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Sell the equipment and return EPA's share of the
proceeds to EPA (the trust fund)
Return the equipment to EPA and, if applicable,
EPA will reimburse the State for the State's
proportionate share of the current fair market
value.
A.4.e Invention Disclosure Report
If there are inventions, EPA Form 3340-3, "Contrac-
tor's or Assistance Recipient's Invention Disclosure,"
must be submitted annually and within ninety days after
completion of a project.
A.5 Forms
40 CFR 30.400 and 30.505 list a number of forms that
are required for submittal of the above closeout reports/
information. Appendix 1-C of the Assistance Administration
Manual lists EPA assistance administration forms.
A.6 Timely Closeout
The final technical progress report is submitted at
the conclusion of a fund-financed activity or after certi-
fication that a remedial action is functional and opera-
tional, if no O&M is involved. The response activity
report (RI/FS Report, RD Report, RA Report, or O&M Report)
due date is prescribed in the Cooperative Agreement
(usually sixty days after the completion of the applicable
activity). The final technical progress report and most
other final reports are due within ninety days after the
end of the project period (see 40 CFR 30.505 and Chapter
37 of the Assistance Administration Manual).
Settlement of claims and legal suits and completion of
cost recovery requirements may extend considerably beyond
the physical completion of the project and the prescribed
due dates for reports and other deliverables. If possi-
ble, all deliverables should be submitted at the physical
completion of each activity within the Cooperative Agree-
ment for review and acceptance, even if there are unre-
solved legal and financial issues. This will help to
ensure that deliverables are complete and accurate and
will allow rapid closeout after all legal and financial
issues are resolved. The Cooperative Agreement must be
amended so that all changes in the project's scope are
accurately reflected prior to closeout.
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The actual closeout process should begin during the
last approved agreement budget period. At that time, the
State is notified in writing by the EPA Regional AAU that
the project is ending. The GIGS will identify the time
for issuance of this letter. The Regional AAU will also
provide the State with the information and forms necessary
for closeout. Projects nearing closeout can be identified
from GIGS and the Master Task Schedule of CERCLIS.
A.7 Recordkeeping Requirements
The State must keep records for three years after the
final reconciliation payment or, for those agreements
selected for audit during the three year period, until the,
audit has been completed and all issues resolved, which-
ever is later (see Appendix G of this manual for State
preparation for an audit). If enforcement actions or
other litigation activities are initiated during the proj-
ect, documents must be retained for the three years or
until all such activities are resolved, whichever is
longer.
A decision to audit a project may occur after the
project has already been closed out. In such a case, the
recipient must continue to hold all records then on hand
until the audit is over and all questions are resolved.
(See documentation and recordkeeping requirements in Ap-
pendix U.)
B. REMEDIAL RESPONSE COOPERATIVE AGREEMENT CLOSEOUT
This section outlines reports and other products re-
quired at the end of RI/FS, RD, RA, and O&M activities,
respectively.
B.I Remedial Investigation/Feasibility Study
At the end of the remedial activity period for the RI,
FS, or RI/FS, as applicable, the following deliverables
,are required:
An RI, FS or RI/FS FSR, SF-269
A technical progress report that, in narrative
form, describes how the terms of the Cooperative
Agreement for the RI/FS activities were fulfilled
An RI,FS or RI/FS report describing the site and
alternatives for its remediation, as prescribed
in the Cooperative Agreement
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Ancillary products as required by the Cooperative
Agreement, that can be included as part of the
RI/FS report
A Property/Equipment Report (see Appendix T)
An Invention Disclosure Report, if applicable.
If the RD/RA will be a Federal-lead project with no O&M or
State oversight/ the reports listed above would be final
reports for closeout of the Cooperative Agreement rather
than for the final response activity.
B.2 Remedial Design
At the end of the project period for RD, the following
reports are required:
An FSR, SF-269
An RD technical progress report
An approved design package consistent with the
ROD, including a plan for O&M for the remedial
action as designed
If applicable, property/equipment, invention, or
other ancillary reports described in Sections
A.2.c, A.2.d, and A.4.e of this chapter.
B.3 Remedial Action
Actions that must be completed prior to submittal of
the final remedial action report and the amendment of the
Cooperative Agreement for O&M (if the project entails O&M)
include:
Certification by the contractor that the remedial
action is operational and functional (i.e., that
it is performing as specified in subagreement)
Joint State and EPA inspection of the remedy and
State acceptance of the remedy
Documentation necessary to support deletion of
the site from the NPL
Approval of an O&M plan
Transfer from the contractor to the State of the
O&M manual, as built drawings, and specifications
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Transfer from the contractor to the State of all
service warranties for parts and other portions
of the remedy
Implementation of institutional controls, if
required.
If no O&M is involved in the remedy, the project will be
closed out at this point and all reports/products/actions
listed will be final.
The following reports are due after certification that
the remedial action is operational and functional:
An FSR, SF-269
A remedial action technical progress report
A final O&M plan (based on the remedy construc-
ted) including an O&M manual, designs, and speci-
fications
Other ancillary products such as final Community
Relations Report
A Property/Equipment Report (see Section B.2.d
and Appendix T of this manual)
An invention disclosure report, if applicable.
B.4 Operation and Maintenance
The closeout process can take place at the completion
of the fund-financed O&M activities, with reconciliation
of the final payment and settlement of all contractor
claims.
C. MSCA RESPONSE ACTIVITY CLOSEOUT
The closeout of a response activity under an MSCA
follows the requirements and the process described for
closeout of single-site Cooperative Agreements. Although
a number of response activities are covered under an MSCA,
each activity has its own code for accounting, an itemized
budget breakdown, and separate reporting within each quar-
terly technical progress report for the MSCA. This allows
the reporting requirements for each project or unit to be
completed and the project closed out independently of the
other activities covered in the MSCA.
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C.I Financial Status/Accounting
Any obligated funds remaining in the individual re-
sponse activity at closeout can be transferred to another
site/activity in the MSCA through the Cooperative Agree-
ment amendment process without reguiring recertification
of the funds. This transfer of funds, however, must be
consistent with the Region's SCAP. Transfer of funds to
another site/activity within the umbrella MSCA allows the
final FSR for the response activity to reflect zero un-
liquidated obligations with a minimum of paperwork. All
records for the response activity being closed out must be
kept for three years or until those agreements selected
for audit have had all issues resolved and the audit has
been completed. If the remedial activity is a part of an
MSCA at the same site, all records must be retained at
least three years after the closeout of the umbrella
agreement or until those agreements selected for audit
have had all issues resolved and the audit has been com-
pleted. This three year period may be extended if other
litigation actions are initiated; in such cases, the State
must retain the records for three years or until the reso-
lution of the litigation or enforcement activities, which-
ever is longer.
C.2 Property/Equipment Report
Equipment with remaining useful life that has been
purchased with funds for the site-specific remedial
planning activity can be transferred to other
site-response activities within the MSCA upon EPA
approval. The accounting for the purchased equipment must
be done on a proportionate share basis. During remedial
action, transportable or mobile treatment systems (thermal
destruction, biological or physical-chemical units, etc.)
are provided by the contractor as part of the
bidding/procurement process and do not present a disposal
problem. See Appendix T for equipment/property
disposition; the State can recommend a method of equipment
disposal in its property report.
D. CLOSEOUT OF A COOPERATIVE AGREEMENT FOR MANAGEMENT
ASSISTANCE
Closeout of Cooperative Agreements for management
assistance activities should follow the closeout process
detailed in Section A of this chapter. The State should
submit all reports as required' in the terms and conditions
of the Cooperative Agreement.
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E. SUPERFUND STATE. CONTRACTS
If EPA retains lead management responsibility for
response, an SSC is used when the activity requires the
State to provide cost sharing and/or other CERCLA section
104(c)(3) assurances. The SSC is a legally binding agree-
ment between EPA and the State that documents both par-
ties' responsibilities. The RPM and SPO .should review
each article in the agreement when the Federal-lead proj-
ect is approaching conclusion to ensure that the project
and SSC are properly closed out.
E.I EPA Responsibilities
The following actions must be completed for a Federal-
lead project before a State assumes responsibility for the
remedy:
Joint inspection by EPA and the State to confirm
that the contractor's work is operational and
functional
Transfer to the State of the contractor's certi-
fication that the remedy is functional and opera-
tional
Acceptance of the remedy by the State
Transfer to the State of the O&M manual, as built
drawings and specifications, etc.
. . Transfer to the State of any service warranties
for equipment, parts, etc.
SSCs cannot be closed out until all activities are com-
pleted, all contractor claims are settled, and the REM or
COE contract closeout process is completed. The RPM will
notify the FMO when EPA has sent the final bill for the
payment reconciliation action phase.
E.2 State Reponsibilities
State responsibilities during the course of a Federal-
lead project are documented in the SSC and may vary de-
pending on the degree of State participation.
E.3 SSC Articles That Require Closeout Action
Examples of articles usually included in an SSC are
contained in Appendix H of this manual. Specific articles
requiring attention during closeout are discussed below.
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E.S.a State Cost Sharing
In its SSC, the State agrees to pay a share of the
cost of a project covered by the SSC, based on an estimate
provided by EPA at the time that the agreement was negoti-
ated. At the completion of the work defined in the Scope
of Work attached to the Contract, EPA will provide the
State with copies of all documents pertaining to all fi-
nancial transactions made pursuant to the Contract. This
includes the calculation of the total cost share paid by
the State and use of State CERCLA section 104(c)(3)(C)
credit. Final reconciliation of costs is made at this
time. The RPM should work closely with the Regional FMO
to reconcile all payments made by EPA in comparison with
the required State percentage. Monies owed to either EPA
or the State will be paid at that time. The Regional FMO
will execute the necessary paperwork.
E.S.b Operation and Maintenance
At the conclusion of the remedial action, if the State
intends to seek financial assistance for implementation of
the O&M plan to ensure that the remedy is functional and
operational, it must submit a Cooperative Agreement appli-
cation to EPA. The State's application should be based on
the O&M plan prepared for that site and must specify the
State agency responsible for O&M, demonstrate the source
of State O&M funding, designate personnel responsible for
O&M, and contain a schedule for O&M activities.
E.S.c Reports From EPA to the State
EPA will prepare a remedial action report for each
site at the completion of the remedial action performed
under an SSC. This report will be submitted to the SPO
for review within sixty days after the joint EPA/State
inspection and acceptance of the remedy by the State. At
a minimum, the remedial action report will:
Describe oustanding construction items from the
pre-final inspection and state that the items
were resolved
Explain any modifications to work in the Scope of
Work and why these were necessary for the project
Certify that the remedy is functional and opera-
tional
Supply copies of documentation necessary to sup-
port deletion of the site from the NPL.
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E.3.d Acceptance of the Remedy
EPA acceptance of the remedy will be provided to the
State with the final remedial action report. State review
and approval of the remedial action report will signify
State acceptance of the remedy.
E.3.e Transfer of Guarantees and Warranties
Upon State acceptance of the remedy and assumption of
responsibility for the O&M, EPA will transfer all warran-
ties and guarantees to the State.
E.3.f NPL Deletion
At the successful completion of a remedial action at a
site performed under the SSC, the State can request EPA to
delete the site from the NPL. The State participates in
the NPL deletion process by reviewing the site's deletion
package and commenting on the proposed deletion.
E.3.g Contract Closeout
The SSC remains in effect until a final cost reconcil-
iation is made to ensure that both the State and EPA have
contributed their full cost shares for the project(s)
conducted pursuant to it. This includes: satisfactory
completion of the remedial activities described in the
Scope of Work; the final accounting of all project costs,
including all change orders and outstanding contractor
claims; EPA receipt of documentation of all costs incur-
red; and receipt of all State cost share payments made
under the Contract.
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